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Benton's Communications-related Headlines For Thursday August 11, 2005

For upcoming media policy events, see http://www.benton.org/calendar.htm

ON CAPITOL HILL
Rural Senators Aim To Expand USF
Don't Change Auction Process, FCC Tells Congress
Capitol Hill Telecom Tidbits

BROADBAND
Activists Attack Rosy Broadband Report
Texas OKs Statewide Telco Franchises

OWNERSHIP
Former FCC Chief to Join Providence Equity
A Buoyed Murdoch Blocks a Major Investor
Hollywood, Radio Finally Part Waves
Sprint, Nextel Employees Compete to Keep Their Jobs
Salt Lake City Getting First Duopoly

TEENS & MEDIA
The Movies Are Rated R, but Not on the Billboards
Text Messages Sent by Cellphone Finally Catch On in U.S.

QUICKLY -- NAB Wants Sooner DTV-Tuner Mandate; Cracking Down on 'Mobile
Viewing'; NCAA Wants Media To Drop Indian Names; Challenge to FBI Records
Demands; NSF Funds VoIP Tapping Research; Web Increasingly Cluttered By
Sites Full of Paid Links; Fall Media Reading List

ON CAPITOL HILL

RURAL SENATORS AIM TO EXPAND USF
Three senators representing largely rural states plan to draft legislation
that would strengthen and expand the fund subsidizing telephone service to
rural and impoverished areas. Republicans Conrad Burns of Montana and
Olympia Snowe of Maine, along with Democrat John (Jay) Rockefeller of West
Virginia, plan to draft universal service legislation in consultation with
Senate Commerce Chairman Ted Stevens, R-Alaska. Preserving the $6.5 billion
universal service fund is a top priority of the lawmakers. The legislation
would help build the foundation of Sen Stevens' efforts to revamp universal
service. "We are aware that Senator Burns is working on a USF bill," a
Stevens spokeswoman wrote in an e-mail, noting that Stevens and Burns have
worked together on that and other issues. "We look forward to reviewing his
bill, along with any others introduced by committee members." Sources
speculated that Sen Burns and company would seek to expand the base of
contributors to the fund and revise a Byzantine system of intercarrier
payments.
[SOURCE: Technology Daily, AUTHOR: David Hatch]
http://www.njtelecomupdate.com/lenya/telco/live/tb-WZDU1123706481876.html

DON'T CHANGE AUCTION PROCESS, FCC TELLS CONGRESS
The auction process is a "speedy, efficient mechanism for deploying
spectrum" that has brought the government $26.8 billion while promoting the
broadest possible participation, according to a letter the FCC wrote in
July to House Telecom Subcommittee Chairman Fred Upton (R-MI). The FCC was
responding to 20 questions on spectrum auctions submitted by Rep. Bobby
Rush (D-II) arising from a May 26 hearing on the draft House DTV bill. He
wanted in-depth information on FCC management of the auction process to
determine how quickly the government can log revenue and see if changes
were needed to widen participation by minorities and small businesses in
the bidding process.
[SOURCE: Communications Daily, AUTHOR: Anne Veigle]
(Not available online)

CAPITOL HILL TELECOM TIDBITS (see bottom of page)
1) The Senate and House Commerce Committees must have digital television
legislation ready by Sept. 16 for inclusion by the budget committees in a
reconciliation package. Both measures would establish a firm transition
date from analog to digital. 2) The House Commerce Committee is making
progress on drafting a telecom bill that will address regulation of
Internet-based phone and video services. Industry sources expect the draft
in September or October. 3) This fall, House Commerce Committee plans to
publish the findings of its investigation into fraud and abuse associated
with the e-rate. 4) The Senate Commerce Committee will reschedule a hearing
on proposed telecom mergers.
[SOURCE: Technology Daily, AUTHOR: David Hatch]
http://www.njtelecomupdate.com/lenya/telco/live/tb-WZDU1123706481876.html

BROADBAND

ACTIVISTS ATTACK ROSY BROADBAND REPORT
Free Press and Consumer's Union say FCC Chairman Kevin Martin was wearing
rose-colored glasses when he touted a July report on the progress of the
country's rollout of broadband service. The two released a report of their
own Wednesday, a "broadband reality check" they said shows the FCC is
"failing to confront the digital divide."
The groups argue that the FCC's definition of 200 Kilobits per second as
high-speed Internet access is barely fast enough for streaming video and
"far below" the high-speed threshold for other countries. It also argues
that the FCC is overstating the penetration rate by using a ZIP code
reached as the measurement, even if only one person in the ZIP code
subscribes and irrespective of price, speed, or general availability.
"Despite FCC claims, the digital divide persists and is growing wider,"
they say. "Broadband adoption is largely dependent on socio-economic
status. In addition, broadband penetration in urban and suburban in areas
is double that of rural areas." The report was a response not only to the
FCC's braodband status report but to the commission's removal--with the
help of the Supreme Court in the Brand X decision--of open access
requirements on cable braodband service and, as of last Friday, on telco
broadband service as well.
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
http://www.broadcastingcable.com/article/CA634035?display=Breaking+News&...
(free access for Benton's Headlines subscribers)
* See press release: http://www.freepress.net/press/release.php?id=86
* See "Broadband Reality Check: The FCC ignores America's Digital Divide":
http://www.freepress.net/docs/broadband_report.pdf

TEXAS OKs STATEWIDE TELCO FRANCHISES
Texas legislators have given telephone companies what they wanted, passing
legislation allowing them to launch video services without securing
town-by-town franchises. The bill had been opposed by cable operators, who
have long been forced to secure a franchise for each city or suburb in
which they operate. The state senate approved the bill late Tuesday and the
House signed off Wednesday. The bill has now been sent to Gov. Rick Perry
for his signature. It's unknown whether Gov. Rick Perry will sign the
measure -- or any other bills that pass the legislature -- into law unless
lawmakers conclude their business on education-funding reform, Multichannel
News reports. The legislation paves the way for SBC and Verizon to apply
for statewide franchises to deliver cable-like video franchises. It also
allows power companies to offer broadband over powerlines.
[SOURCE: Broadcasting&Cable, AUTHOR: John M. Higgins & John Eggerton]
http://www.broadcastingcable.com/article/CA633869?display=Breaking+News&...
(free access for Benton's Headlines subscribers)
* Texas Legislature OKs Telco Bill
http://www.multichannel.com/article/CA633979.html?display=Breaking+News
(requires subscription)
* Verizon, SBC Bid to Offer TV Gets a Lift From Texas House
http://online.wsj.com/article/0,,SB112370794488510123,00.html?mod=todays...
* Phone Firms In Texas Near A TV Coup
http://www.washingtonpost.com/wp-dyn/content/article/2005/08/10/AR200508...
* Texas Passes Deregulatory Telco Bill
http://www.njtelecomupdate.com/lenya/telco/live/tb-HRJK1123765693585.html

OWNERSHIP

FORMER FCC CHIEF TO JOIN PROVIDENCE EQUITY
Everyone's always asking, "Hey, how is Mike Powell doing these days." Well,
you're kind to ask. He's joining Providence Equity Partners, a private
equity firm that has in recent years built a $9 billion empire of holdings
in media and telecommunications companies. His role will be trying to
generate new ideas for deals and mentoring Providence's roster of
companies. "I didn't want to be a lobbyist," said Mr. Powell. "I didn't
want to be a classic former government official that does nothing but sell
access back to the corridors of DC" Mr. Powell is not worried about now
doing business with some of the same people he once regulated and perhaps
frustrated. "These are folks who play in a business in which things go your
way and don't go your way and I don't think that you personalize or
emotionalize policy," he said, citing what he called "a very strong
relationship" with Mel Karmazin, the former president of Viacom, the owner
of CBS and Infinity Broadcasting, with whom he feuded over everything from
Howard Stern's on-air antics to the Janet Jackson episode.
[SOURCE: New York Times, AUTHOR: Andrew Ross Sorkin]
http://www.nytimes.com/2005/08/11/business/media/11deal.html
(requires registration)

A BUOYED MURDOCH BLOCKS A MAJOR INVESTOR
Rupert Murdoch gave the cold shoulder to his largest shareholder, John C.
Malone, yesterday by extending a poison pill that blocks Mr. Malone's
Liberty Media Corporation from buying more shares of Mr. Murdoch's News
Corporation. The shareholder rights plan, or poison pill, was put in place
for a period of one year last November, but was extended by the News
Corporation's board for two more years. Mr. Murdoch indicated talks with
Mr. Malone about swapping assets for the shares or entering into some kind
of standstill arrangement had stalled. Mr. Malone built an 18 percent
voting stake in the News Corporation last year, to Mr. Murdoch's surprise,
while professing friendly intentions to Mr. Murdoch, a sometime business
partner. In a conference call last week, Mr. Malone said he did not expect
to sell the shares any time soon and hoped the company's strategy would be
focused "a little more on shareholder returns and less on empire building."
Mr. Murdoch controls 29.5 percent of the company's voting stock. The
analyst Richard Greenfield of Fulcrum Global Partners applauded Mr.
Murdoch's tactics. "You've seen today where the leverage rests - with
Murdoch, not with Malone," Mr. Greenfield said. "You own this stock for
Rupert's vision. Any threats to that vision should be protected by the
company." In the conference call, Mr. Murdoch emphasized the company was
serious about competing on the Internet. After spending $580 million to
acquire Intermix Media and its popular social networking site Myspace.com,
Mr. Murdoch said the company could spend double that and possibly up to $2
billion to buy Internet assets to complement what the company would build
internally. The company also last week acquired the sports Web business
Scout Media for $60 million, and Mr. Murdoch said the company is "in very
advanced negotiations to buy a controlling interest in what we think is a
wonderful search engine."
[SOURCE: New York Times, AUTHOR: Richard Siklos]
http://www.nytimes.com/2005/08/11/business/media/11news.html
(requires registration)
* News Corp. Extends Its Poison Pill
http://online.wsj.com/article/0,,SB112368437408109776,00.html?mod=todays...
* News Corp's Murdoch: No Bigger Priority Than Internet
http://www.smartmoney.com/bn/ON/index.cfm?story=ON-20050810-000911-1846

HOLLYWOOD, RADIO FINALLY PART WAVES
For some, Friday will mark a dark day in Hollywood -- and a reminder of how
much the radio business has changed. Microphones at the last radio station
in Hollywood will go dead as announcers and newscasters complete their
final on-air shift at the historic Columbia Square broadcast center. The
relocation of Los Angeles' first radio station, KNX-AM (1070), to new
studios in Wilshire Boulevard's Miracle Mile area will end an 85-year
tradition of radio broadcasting in the place that bills itself as the
world's center of entertainment. Over the years, Hollywood has been home to
68 radio stations and nine television stations. In the last few years, five
television stations have left. And when Columbia Square is shut down next
year, two more -- KCBS-TV Channel 2 and KCAL-TV Channel 9 -- will move to
new headquarters being built in Studio City. That will leave just two
television stations, KTLA-TV Channel 5 and KCET-TV Channel 28, in
Tinseltown. "I never thought I'd see the day when there are no radio
broadcasts out of Hollywood," said KNX assistant news director Ronnie
Bradford, who joined the station in 1968. "This is a company town --
movies, television and radio." Many believe that the loss of radio has to
do with corporate economics. The dozens of radio and TV stations, once
independently owned, are now part of big corporate chains. These companies,
like Infinity and Clear Channel, save money by consolidating engineering
and administrative jobs under one roof. The radio and TV buildings in
Hollywood are old, making it hard to conform with the latest technology.
Infinity owns seven radio stations, including KROQ-FM (106.7) and KRTH-FM
(101), while Clear Channel owns 10, such as KIIS-FM (102.7) and KFI-AM (640).
[SOURCE: Los Angeles Times, AUTHOR: Bob Pool]
http://www.latimes.com/news/printedition/front/la-me-hollywood11aug11,1,...
(requires registration)

SPRINT, NEXTEL EMPLOYEES COMPETE TO KEEP JOBS
A huge benefit of the $35 billion merger between Sprint and Nextel is that
current employees of both companies get to work on their interviewing
skills. They are also sharpening their elbows as they compete for jobs they
already hold. Executives decided the most egalitarian way to staff the new
company would be to put all of the positions up for grabs and let workers
from both firms duke it out. Not surprisingly, that has people from both
Sprint and Nextel completely on edge.
[SOURCE: Washington Post, AUTHOR: Ellen McCarthy]
http://www.washingtonpost.com/wp-dyn/content/article/2005/08/10/AR200508...
(requires registration)

SALT LAKE CITY GETTING FIRST DUOPOLY
Clear Channel is buying WB affiliate KUWB Salt Lake City from ACME
Communications for $18.5 million. The deal, subject to FCC approval, would
give Clear Channel, owner of ABC affiliate KTVX, a duopoly in the 36th
largest TV market.
[SOURCE: Broadcasting&Cable, AUTHOR: Allison Romano]
http://www.broadcastingcable.com/article/CA633804?display=Breaking+News&...
(free access for Benton's Headlines subscribers)

TEENS & MEDIA

THE MOVIES ARE RATED R, BUT NOT ON THE BILLBOARDS
In a season when raunchy sex comedies were supposed to defy conventional
Hollywood marketing wisdom by wearing their R-ratings proudly, they instead
appear to be test cases as studios exploit a loophole in the movie
industry's self-regulating ratings system, which is intended to give
parents the information they need to make decisions about what their
children see. (The ratings system has been refined in recent years amid
pressure from Congress and parents' groups, but they were focused on
violence, not sex.) Outdoor advertisements for many movies now include fine
print saying that the movie has yet to be rated. Nell Minow (daughter of
the famous former FCC chairman Newt), who writes parent-oriented film
reviews for Yahoo! as the Movie Mom, said she believed the studios were
"intentionally and maliciously exploiting a loophole" in the ratings
system. "They would get it in on time if they wanted to," she said. "The
sweet spot for an R-rated comedy is the 15-to-17-year-old range," she said.
"Not having a rating means that a 15-year-old is getting more interested in
the movie than if it already said, 'This is not permissible for you.' It's
that most vulnerable audience that's most intrigued. I don't think it's
parents being fooled, I think it's the under-age audience that's being
titillated by the prospect of seeing the movie."
[SOURCE: New York Times, AUTHOR: David Halbfinger]
http://www.nytimes.com/2005/08/11/movies/11raun.html
(requires registration)

TEXT MESSAGES SENT BY CELLPHONE FINALLY CATCH ON IN US
Some 55 million cellphone users in the U.S. use text messaging for
everything from chatting and dating to business and spiritual counseling.
Once mostly a fad among teens in the U.S., text messaging is growing in
popularity among American adults. They are finding it to be less intrusive
than voice calling, especially in public spaces. It also can be more
private than email, since an office colleague or family member can more
readily see a message typed on a computer screen. Some 4.7 billion text
messages were sent in the U.S. last December, the latest figures available,
compared with 2.1 billion a year earlier and 253 million in December 2001,
according to CTIA-The Wireless Association. Revenue from text messaging is
projected to grow to $4.3 billion in 2006 from $2.5 billion in 2004, says
Forrester Research. Still, the U.S. remains a laggard in "texting" compared
with many other regions of the world. CTIA estimates that in 2004, U.S.
cellphone users sent 203 text messages on average, or 37 billion in total,
while in China, cellphone users exchanged 651 per user, or 218 billion in
total, according to the Chinese information industry ministry. About 71% of
European cellphone users send text messages, more than twice the percentage
in the U.S., says Charles Golvin, an analyst at Forrester. A survey earlier
this year by technology consulting firm Yankee Group of 5,200 adults found
that 33% of Americans between 25 and 34 text-message regularly, up from 24%
in 2004. The rate of text messaging by people between 35 and 44 remained
about 25% in both years, while usage by 18- to 24-year-olds grew to 62%
from 52%. As more older consumers join in, text messaging will be a major
driver of overall data revenue for cellphone carriers over the next five
years, says Linda Barrabee, a Yankee Group analyst.
[SOURCE: Wall Street Journal, AUTHOR: Li Yuan li.yuan( at )wsj.com]
http://online.wsj.com/article/0,,SB112372600885810565,00.html?mod=todays...
(requires subscription)

QUICKLY

NAB WANTS SOONER DTV-TUNER MANDATE
The National Association of Broadcasters is urging the Federal
Communications Commission to accelerate mandates for inclusion of
over-the-air digital tuners in new TV sets. Current FCC rules require DTV
in all but the smallest sets by July 2007. In comments filed Wednesday, NAB
asked the FCC to move it back to "late 2006." NAB also asked the FCC to
end the tuner mandate exemption for sets with screens under 13 inches.
[SOURCE: Multichannel News, AUTHOR: Ted Hearn]
http://www.multichannel.com/article/CA634076.html?display=Breaking+News
(requires subscription)

CRACKING DOWN ON 'MOBILE VIEWING'
DVDs and driving increasingly don't mix. While many states have long banned
drivers from watching television in their cars, a growing number are
expanding such laws to prohibit drivers from viewing DVD players, laptop
screens and other video entertainment. Meanwhile, a number of states that
never had driving-and-viewing laws are working on adding them.
[SOURCE: Wall Street Journal, AUTHOR: Jennifer Saranow
jennifer.saranow( at )wsj.com]
http://online.wsj.com/article/0,,SB112372578791610559,00.html?mod=todays...
(requires subscription)

NCAA WANTS MEDIA TO DROP INDIAN NAMES
National Collegiate Athletic Association spokesman Bob Williams confirmed
Wednesday that the NCAA will encourage broadcast and cable outlets that
carry its college sports championships not to use Indian-related team
names, including Braves, Indians, Savages, which the NCAA has concluded are
"hostile and abusive."
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
http://www.broadcastingcable.com/article/CA634090?display=Breaking+News&...
(free access for Benton's Headlines subscribers)

CDT SUPPORTS CHALLENGES TO FBI RECORDS DEMANDS
CDT and other privacy groups joined a brief written by the Electronic
Frontier Foundation, supporting on appeal the decision of a lower federal
court that National Security Letters (NSLs) are unconstitutional. NSLs are
secret demands for Internet and telephone communications logs that are
issued by the FBI without prior judicial approval.
Brief on National Security Letters:
http://www.cdt.org/security/20050805nslbrief.pdf

NSF FUNDS VOIP TAPPING RESEARCH
The National Science Foundation has given Xinyuan Wang, an assistant
professor of software engineering at George Mason University, a $307,436
grant to support a project designed to let police identify whether suspects
under surveillance have been communicating through voice over Internet
Protocol (VoIP)--information that would be unavailable today if people
choose to communicate surreptitiously.
[SOURCE: CNet|News.com, AUTHOR: Declan McCullagh ]
http://news.com.com/Feds+fund+VoIP+tapping+research/2100-7348_3-5825932....

WEB INCREASINGLY CLUTTERED BY SITES FULL OF PAID LINKS
[Commentary] Search-related advertising is fueling a new wave of Web sites
that seem to have as much appeal as a cheesy Hollywood set. That's because
many are created to look good to search engines, much as fake scenery fools
TV cameras. Everywhere I turn online these days I stumble over junky sites
that do little more than clutter up the search results at Google and Yahoo.
The search engine ad industry appears to have touched off a moneymaking
frenzy only slightly less intense than the original dot-com boom. But I
can't help but think that this new wave is generating too many useless link
directories designed to provide no value to site visitors, while making
money the same way Google and Yahoo do, by showing links to sites that pay
each time someone clicks on them. Many redistribute text ads sold by Google
and Yahoo, which makes the Web feel like a hall of mirrors.
[SOURCE: Washington Post, AUTHOR: Leslie Walker walkerl( at )washpost.com]
http://www.washingtonpost.com/wp-dyn/content/article/2005/08/10/AR200508...
(requires registration)

FALL MEDIA READING LIST
What's the most useful book on media you've read and why? See answers from
real live media people (if there is such a thing) at the URL below.
[SOURCE: MediaBistro, AUTHOR: David Hirschman ]
http://www.mediabistro.com/articles/cache/a5011.asp
--------------------------------------------------------------
Communications-related Headlines is a free online news summary service
provided by the Benton Foundation (www.benton.org). Posted Monday through
Friday, this service provides updates on important industry developments,
policy issues, and other related news events. While the summaries are
factually accurate, their often informal tone does not always represent the
tone of the original articles. Headlines are compiled by Kevin Taglang
(headlines( at )benton.org) -- we welcome your comments.
--------------------------------------------------------------

Benton's Communications-related Headlines For Wednesday August 10, 2005

For upcoming media policy events, see http://www.benton.org/calendar.htm

BROADBAND
Muni Broadband Finding Its Stride
Does Energy Policy Act Spell Doom of Municipal Networks?
Bring Back Home Rule -- The State of Telecom 100 Years Ago & Today
Here Comes Your 19th Telecom Meltdown
Net Losses
Uncertainty About BPL Classification Seen in Wake of FCC Order
In La., Model Problems For A Broadband Pioneer

MEDIA
Bully Pulpit
More TVs Slammed For 'Impaired' Coverage
NAB Comes Up With New Short List of Presidential Candidates

QUICKLY -- NCAA Recommends Alcohol Ad Limits; ABC Labels WGA Complaint
'Meritless'; Anti-Porn Group Targets Cox; 'Vacationing' Bush Controls News
Agenda; New Sprint Nextel will focus on 3rd screen

BROADBAND

MUNI BROADBAND FINDING ITS STRIDE
the debate about whether municipalities should be funding or creating
high-speed Internet networks has a back-to-the-future quality.
Technological advances, dissatisfaction with the nation's broadband pace
over the past several years, and the dynamics of convergence have led
"digital municipalism" to hit its stride. The issue is squarely part of any
rewrite of the nation's telecommunications laws. Bills now in Congress
could bar states from allowing municipal broadband in areas served by the
private sector, and on the other hand are measures to pre-empt the 14
states that do band or restrict the provision of municipal broadband. It is
something the United States has not seen in seven decades, at least since
the progressive and New Deal era: a debate about whether the state, either
instead of or competing with the private sector, should own "the means of
production" in an information age. Many proponents look back a century for
historical guidance from the country's experience in publicly provided
rural electrification.
[SOURCE: Technology Daily, AUTHOR: Drew Clark]
http://www.njtelecomupdate.com/lenya/telco/live/tb-KAZO1123617399581.html

DOES ENERGY POLICY ACT SPELL DOOM OF MUNICIPAL NETWORKS?
With the signing of the Energy Policy Act of 2005, the Public Utilities
Holding Company Act has been repealed. PUHCA was a part of the New Deal
legislation, passed in 1935 in response to corruption and scandals in the
energy companies of the time. PUHCA was meant to protect consumers against
business dealings that could threaten the reliability of the energy
utilities. In brief, PUHCA enabled extensive regulation of the size,
spread, business type and finances of the holding companies that owned and
operated the energy utilities. Much of PUHCA focused on mergers and
acquisitions. Any mergers -- such as the recently-announced Duke-Cynergy
combo -- would be subject to rules on the location of the merging
companies, the diversity of holdings the post-merger entity could have, and
the amount of debt the resulting company could hold; such mergers would
also be subject to close scrutiny by the Securities Exchange Commission.
The goal of PUHCA was to prevent the kinds of cross-dealing and subsidiary
"looting" that became increasingly commonplace among owners of utilities in
the early days of the Great Depression. the repeal of PUHCA means that
public utility companies are now fair game for buyouts and consolidation.
One likely scenario is that we see a process of merger and acquisition in
the energy utility market akin to that in the telecommunications arena.
Moreover, as major global energy companies such as ExxonMobil and
ChevronTexaco have been at the forefront of efforts to get PUHCA repealed,
it's highly likely that they -- along with other energy majors -- will look
to spend some of their recent windfall profits on utility acquisition,
buying not just the power supply businesses, but the customer information.
But it need not be an oil firm buying up utilities; billionaire investors
and non-energy industry companies could just as easily buy up local
utilities. What might Wal*Mart Power & Light look like? or Microsoft
Edison? Or General Electric Gas & Electric (GEG&E)?
[SOURCE: WorldChanging, AUTHOR: Jamais Cascio]
http://www.worldchanging.com/archives/003264.html
* Says Dave Isenberg: "More surely than Brand X, more surely than the
Martin FCC, More surely than The Ensign BICCA Bill and The Pete Sessions
SBC Bill, the repeal of PUHCA will discourage, prevent and destroy
municipal networks."
http://isen.com/blog/2005/08/bush-energy-bill-bye-bye-municipal.html
(Thanks to Jim Baller for these links)

BRING BACK HOME RULE -- THE STATE OF TELECOM 100 YEARS AGO & TODAY
[Commentary] I was recently speaking with the CEO of one of the major US
wireless providers about the place of non-incumbents in creating
telecommunication infrastructure. After a beer or two we ended up
discussing telecommunications history (one of my favorite subjects) and I
promised to send along some background information on one of the most
exciting periods -- back at the turn of the last century -- 1894 (when the
Bell system's patents on the telephone expired) through the early 1900s. I
think this information would prove extremely useful to current policy
debate (especially given the current state and national debates to limit
municipal broadband) -- so I've decided to put it out there publicly to see
how other folks might utilize it. If nothing else, it provides a cautionary
tale for those seeking to limit consumer's choices. Pulitzer Prize winner
Paul Starr wrote a book called, "The Creation of the Media: Political
Origins of Modern Communications." Chapter 6 focuses on "Telephone, Cable,
and Wireless." It's definitely worth the read; however, for those on the
go, here's some choice excerpts concerning the Home Rule Movement. After
1893 there was an explosion of interest in wire-line communications. Starr
writes: From 1894 until 1907 (and continuing in lesser degree for another
decade), the market broke open with a surge of independent commercial and
nonprofit cooperative telephone enterprises. This opening, more than any
other development, propelled the popular takeoff of the telephone in
America, expanding its geographical range and allowing consumers to push
its evolution in directions the Bell System had not planned." More at the
URL below...
[SOURCE: Sascha Meinrath]
http://www.saschameinrath.com/node/175

HERE COMES YOUR 19TH TELECOM MELTDOWN
[Commentary] You don't know it yet, but you want your IPTV -- short for
Internet protocol television. It's the only live hope for getting this
country wired with high-capacity broadband the way our economic competitors
Japan and South Korea are wired. Well, forget about it. Sure, IPTV would
fulfill the promise of access to all the world's video, liberated from the
dictates of program schedulers, manageable from whatever TV, cell phone or
computer might be at hand, even when far from home. And yes, not only is
there a large pool of capital available to bring you this nirvana, but a
motive. America's Baby Bells still produce billions in cash flow from their
obsolescing voice networks and IPTV is the only business proposition on the
horizon that might rescue them from a strategic cul-de-sac. You'd be
forgiven also for thinking the regulatory ducks are finally in a row after
a decade of court fights. Not quite. The Federal Communications Commission
has worked hard to free up networks to deliver bits that arrive as Web
pages, email, movie downloads, etc. Where the FCC has lost its nerve is
failing to extend the same freedom to bits that arrive looking like what
you're used to getting from a TV broadcaster. Result: IPTV is in danger of
being euthanized in its crib by 33,000 franchise boards in every hamlet in
the country, which insist that because it looks like cable TV it must be
treated like cable TV. That means running the same gantlet of local
permissions to deliver TV that cable ran 30 years ago, a process that can
take months or years for each town. "Where's the Bush administration?" many
are asking. The White House talks often enough about the urgency of getting
America wired for broadband, yet has been AWOL in most of the regulatory
fights so far. Sooner or later, Wall Street is bound to begin noticing just
how precarious is the future of the four big bells -- which includes
BellSouth and Qwest -- notwithstanding their combined market cap of $230
billion. Their residential voice business is being eaten alive, with no
salvation in sight -- except for IPTV.
[SOURCE: Wall Street Journal, AUTHOR: Holman Jenkins]
http://online.wsj.com/article/0,,SB112362786170209176,00.html?mod=todays...
(requires subscription)

NET LOSSES
[Commentary] The commission declared that the phone companies' DSL
offerings are an "information service," not a "communications service."
This move put DSL operators on the same regulatory footing as cable TV
companies' high-speed services, which is only fair, given how similar the
two products are. But it also opened the door to potential abuses that
could threaten openness on the Internet. The shift could wipe out the
competition that local phone and cable companies face from independent
Internet providers. The concern is that this could make it easier for cable
and phone companies to cut deals with online content or shopping sites,
then try to steer traffic toward those sites at the expense of others on
the Web. Tech companies also worry that broadband providers will dictate
the equipment people are allowed to connect to the Net, the services they
can use and the applications they can run. Congress and the FCC should act
swiftly to generate more competition for cable and phone operators from
other broadband providers. That type of competition would not only help
keep prices down, but preserve the qualities of the Net that make it so
valuable.
[SOURCE: Los Angeles Times, AUTHOR: Editorial Staff]
http://www.latimes.com/news/printedition/opinion/la-ed-fcc10aug10,1,2313...
(requires registration)

UNCERTAINTY ABOUT BPL CLASSIFICATION IN WAKE OF FCC ORDER
Is broadband service provider over power lines (BPL) considered an
information service like cable modem and DSL now are? BPL providers are
guessing "yes" but, apparently the Order adopted last week applies only to
DSL service. The FCC order should apply to BPL, said Scott Cleland of the
Precursor Group: "There is no reason
why anybody should be talking about regulating BPL. It is clearly an
information service; it's clearly a new entrant." He said he would be
"flabbergasted" if anyone considered treating BPL more negatively than DSL
or cable modems: "It's not going to happen." However, Coleman Bazelon,
Analysis Group vp, said the FCC order didn't directly apply to BPL: "It was
specific to classification of DSL service." But whether it directly
addresses BPL or not, he said, the order "certainly speaks to the FCC's
point of view and would have great implications for BPL."
[SOURCE: Communications Daily, AUTHOR: Dinesh Kumar]
(Not available online)

IN LA, MODEL PROBLEMS FOR A BROADBAND PIONEER
An update on Lafayette, Louisiana's municipal network -- and fight with
BellSouth and Cox Cable. In the wake of a successful public vote approving
the project, the state's Public Service Commission is set to rule Sept. 1
on additional funding issues, setting off what is expected to be a
month-long war of words between the city and private industry. A final
ruling from the PSC could set a precedent in the state, as Lafayette is the
only city in Louisiana attempting a fiber-based municipally owned broadband
project. The state has functioning municipal wireless efforts in Baton
Rouge, New Orleans, Vivian and Washington, and another under consideration
in Lake Charles.
[SOURCE: Technology Daily, AUTHOR: Chloe Albanesius]
http://www.njtelecomupdate.com/lenya/telco/live/tb-VDWW1123617858885.html

MEDIA

BULLY PULPIT
The answer is Kenneth Y. Tomlinson. As chairman of the Corporation for
Public Broadcasting (CPB), Tomlinson has spent the last two years living a
conservative fantasy--making life hell for NPR and PBS. While these antics
have spurred outraged op-eds and an inspector general's investigation,
another Tomlinson scandal has gone largely unnoticed. For the last three
years, Tomlinson has moonlighted as chairman of the BBG--which controls
networks that are among the most important vehicles for public diplomacy.
Given the rampant anti-Americanism in the world these days, that makes this
job arguably more consequential than his rule over Oscar the Grouch and
Garrison Keillor. Unfortunately, he hasn't treated the BBG with any greater
gravitas. He has deployed a similar set of tactics: purging the bureaucracy
of political enemies, zealously rooting out perceived "liberal bias," and
generally politicizing institutions that have resisted ideological
intrusions for decades. One of Tomlinson's fellow broadcasting governors
said, "In every story about the CPB, you could substitute BBG."
[SOURCE: The New Republic, AUTHOR: Franklin Foer]
https://ssl.tnr.com/p/docsub.mhtml?i=20050815&s=foer081505
(subscription required)

MORE TVs SLAMMED FOR 'IMPAIRED' COVERAGE
The FCC Tuesday proposed fining two Florida TV stations, WBBH and WZVN of
Fort Myers, Fla., $24,000 apiece for three separate violations of its
requirement that TV stations and cable operators "provide people with
hearing disabilities the same access to emergency information as those with
unimpaired hearing." The violations came during coverage of Hurricane
Charley in August 2004. The stations, which dropped regular programming in
favor of simulcasting 24-hour hurricane coverage failed to provide visual
warnings to accompany the news that a causeway was closed, that an
evacuation of one area had been issued, and that residents in another area
were advised not evacuate but stay where they were. The stations did not
dispute the omissions, but said they didn't feel the information was
critical and that that decision fell within the discretion the FCC gave
stations to decide when such information was important enough to warrant
the on-screen visuals, which can include captions, crawls and graphics. The
FCC concluded instead that the information was obviously critical, that
stations have discretion over only non-critical disaster information, and
that to interpret the "good faith discretion" to include the cited
omissions would be to "swallow the rule and render it wholly ineffective."
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
http://www.broadcastingcable.com/article/CA633474?display=Breaking+News&...
(free access for Benton's Headlines subscribers)

NAB COMES UP WITH NEW SHORT LIST OF PRESIDENTIAL CANDIDATES
The National Association of Broadcasters is still looking for a replacement
for Eddie Fritts (send your resume to executive search firm Spencer
Stuart). Apparently, there is a short list of candidates that includes: 1)
Mitch Rose, former chief of staff for Senate Commerce Committee Chairman
Sen. Ted Stevens (R-Alaska).
Rose is a vice president of government relations for Walt Disney. 2) Lisa
Hook, outgoing president of AOL Broadband, Premium
& Developer Services. She was an FCC mass media adviser under then-Chairman
Dennis Patrick. 3) Also a candidate: the man who first won your heart
playing "Gopher" on the TV series "Love Boat," Fred Grandy. He's now a
former IA congressman. He spent 5 years after leaving office heading
Goodwill Industries. During his tenure, annual revenue nearly doubled to
$1.6 billion, according to his biography. 4) David Rehr, President of the
National Beer Wholesalers Association, is also on the list. Rehr, who took
over as President of the beer association in 2000, has a political
background. He was dir.-federal govt. relations for the National Federation
of Independent businesses, worked for former Rep. Vin Weber (R-Minn.) and
was a staff member for the House Small Business Committee. Another
possibility is Marty Franks, exec. vp at CBS. A decision could be made as
early as October; Mr. Fritts steps down in April.
[SOURCE: Communications Daily, AUTHOR: Tania Panczyk-Collins]
(Not available online)

QUICKLY

NCAA RECOMMENDS ALCOHOL AD LIMITS
The National Collegiate Athletic Association's executive committee has
recommended that its over 1,000 member colleges limit TV and radio ads for
beer, wine and malt beverages (the so-called "alcopops") to 60 seconds per
hour, up to a total of 2 minutes per game, and to ban distilled spirit ads
altogether. The NCAA already imposes those limits on the 88 collegiate
championships it oversees, but Friday the board voted to recommend that all
schools adopt the policy for their college sports contests.
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
http://www.broadcastingcable.com/article/CA633354?display=Breaking+News&...
(free access for Benton's Headlines subscribers)

ABC LABELS WGA COMPLAINT 'MERITLESS'
ABC's response to yesterday's story: "ABC filed charges against The Writers
Guild of America, East, six weeks ago alleging their refusal to bargain in
good faith, and this charge is currently under investigation by the
National Labor Relations Board. In regards to the charges filed by the
WGAE today, while we don't normally comment on pending litigation, we
believe there is absolutely no merit to these allegations."
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
http://www.broadcastingcable.com/article/CA633244?display=Breaking+News&...
(free access for Benton's Headlines subscribers)

ANTI-PORN GROUP TARGETS COX
The Alliance for a Safer Internet is taking aim at Cox's high-speed-data
service. The group said Tuesday that it is launching a petition drive to
get Cox to halt its distribution of Usenet newsgroups. "Cox is distributing
newsgroups that are generally known to carry child pornography and other
obscene images," Alliance for a Safer Internet president Paul Cardin said
in a prepared statement. "It's been going on for years, and it's time that
Cox put an end to it."
[SOURCE: Multichannel News]
http://www.multichannel.com/article/CA633286.html?display=Breaking+News
(requires subscription)

'VACATIONING' BUSH CONTROLS NEWS AGENDA
President Bush's August holidays also demonstrate how the administration
adroitly times and airs its message. With Congress out of session, many
Washington agencies on a vacation schedule and a traveling contingent of
White House reporters cooling their heels in Crawford (TX), President Bush
can count on dictating news coverage with a series of events that rely
heavily on rhetoric and skimp on audience participation.
[SOURCE: Wall Street Journal, AUTHOR: Christopher Cooper
christopher.cooper( at )wsj.com]
http://online.wsj.com/article/0,,SB112363487299609366,00.html?mod=todays...
(requires subscription)

NEW SPRINT NEXTEL WILL FOCUS ON 3RD SCREEN
Sprint and Nextel have a game plan for the future, and it's not what you
might think. The playbook goes like this: Merge the two companies to create
a wireless giant, then transform the combined company -- yet again -- into
a broadband Bigfoot that can compete head-on with Verizon and SBC
Communications.
[SOURCE: USAToday, AUTHOR:]
http://www.usatoday.com/printedition/money/20050810/sprintnextel10.art.htm
--------------------------------------------------------------
Communications-related Headlines is a free online news summary service
provided by the Benton Foundation (www.benton.org). Posted Monday through
Friday, this service provides updates on important industry developments,
policy issues, and other related news events. While the summaries are
factually accurate, their often informal tone does not always represent the
tone of the original articles. Headlines are compiled by Kevin Taglang
(headlines( at )benton.org) -- we welcome your comments.
--------------------------------------------------------------

Benton's Communications-related Headlines For Tuesday August 9, 2005

AT THE FCC
FCC Launches Payola Investigation
FCC Hires Conservative Indecency Critic
Adelstein Says DSL Order 'Basically Rewriting' Telecom Act
Strike Up the Broadband
Comcast, TW Defend Adelphia Deal

AT CONGRESS
Boucher Pushes Mandated Net Neutrality
DTV Bills in Final Stages, Congressional Sources Say

MEDIA
Media No More
'Large is No Longer in Charge' Says Viacom Chief
News Corp. Switches On Charm Offensive

QUICKLY -- Project to Bridge Digital Divide; WGA Files NLRB Complaint
Against ABC; DirecTV Doesn't Have to Give Data to EchoStar; The Digging
Life; Creation of the Media; Wordwatch: Echo Chamber; What Parents Can Do
Before Kids Play Videogames; In Silicon Valley, Doing Good Is the New Thing

AT THE FCC

FCC LAUNCHES PAYOLA INVESTIGATION
FCC Chairman Kevin Martin has launched an investigation into payola.The
move was prompted by a settlement between Sony/BMG and New York State over
payments to stations for playing Sony/BMG artists, but Chairman Martin said
it could extend beyond those companies. "The FCC has longstanding rules
prohibiting payola," the Chairman said in a statement. "These rules serve
the important purpose of ensuring that the listening public knows when
someone is seeking to influence them. Broadcasters must comply with these
rules. The Commission will not tolerate non-compliance. While payola may
not be a widespread practice in the broadcasting industry, to the extent it
is going on, it must stop." The move was praised by Commissioner Jonathan
Adelstein who has made examining payola and plugola on radio and TV a
priority.
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
http://www.broadcastingcable.com/article/CA633231?display=Breaking+News&...
(free access for Benton's Headlines subscribers)
* Chairman Martin's statement:
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-260446A1.doc
* Commissioner Adelstein's statement:
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-260453A1.doc
More coverage --
* FCC Plans Payola Investigation
http://www.washingtonpost.com/wp-dyn/content/article/2005/08/08/AR200508...
* FCC Launches Bribery Probe Over Payouts for Radio Airplay
http://online.wsj.com/article/0,,SB112354064480608033,00.html?mod=todays...
* U.S. to Revisit Payola Inquiry
http://www.latimes.com/business/printedition/la-fi-fcc9aug09,1,548728.st...

FCC HIRES CONSERVATIVE INDECENCY CRITIC
The Federal Communications Commission has hired as an advisor an
anti-pornography activist and former lobbyist for groups that push for
Christian precepts in public policy. The move may herald a reinvigorated
campaign against broadcast indecency and bring renewed pressure on cable to
reconsider its racy offerings. Penny Nance, until recently a board member
of Concerned Women for America, is working as a special advisor in the
FCC's Office of Strategic Planning and Policy Analysis, said aides to FCC
Chairman Kevin Martin. The strategic planning office helps develop agency
policy. Some observers believe the FCC is preparing to act, perhaps in
coming weeks, on as many as 50 indecency complaints. Some see Nance's
arrival as an indication the agency is leaning toward stricter enforcement.
"Why else would [Martin] have someone like that on board?" asked one
Washington attorney who watches the FCC closely.
[SOURCE: MediaWeek, AUTHOR: Todd Shields]
http://www.mediaweek.com/mw/news/recent_display.jsp?vnu_content_id=10010...
* Bringing "Biblical Principles" to the FCC
[Commentary] Why Ms. Nance at the FCC? Maybe Brent Bozell wasn't available
-- or was unwilling to take the pay cut... But it might as well be Brent,
as the article makes clear. What does this say about the direction new FCC
Chair Kevin J. Martin intends to take the Commission on so-called
"indecency" issues? This is extremely troubling news for anyone concerned
about freedom of speech, and the separation of church and state.
http://www.creativevoices.us/php-bin/news/showArticle.php?id=134&PHPSESS...
* The Wages of Sin
[Commentary] I have a few places where Ms. Nance can start tackling this
"indecency" epidemic in cable. Let's begin with the ninth commandment "Thou
shalt not bear false witness."
http://www.riedelcommunications.blogspot.com/
* FCC Hires Anti-Indecency Activist
http://www.broadcastingcable.com/article/CA633238?display=Breaking+News&...
(free access for Benton's Headlines subscribers)
* FCC Hires Anti-Porn Advocate as Advisor
http://www.latimes.com/business/printedition/la-fi-porn9aug09,1,6061866....

ADELSTEIN SAYS DSL ORDER 'BASICALLY REWRITING' TELECOM ACT
Speaking to telecom lawyers out West, FCC Commissioner Jonathan Adelstein
said the Commission had basically rewritten the Communications Act in three
weeks with the DSL order adopted last Friday. He voiced unhappiness at the
Commission's recasting DSL from a telecom service under Title II of the
Communications Act to an information service under Title I, "where it's not
clear we have any authority over anything." Noting that the U.S. Appeals
Court, D.C., has been dubious of the FCC's assertion of Title I authority,
Adelstein said: "If the D.C. Circuit gets pushy" in this case "maybe this
time, we'll have to take it up to the Supreme Court to get some deference."
[SOURCE: Communications Daily, AUTHOR: Louis Trager]
(Not available online)

STRIKE UP THE BROADBAND
[Commentary] In telecommunications, one of the most heavily regulated
sectors of the U.S. economy, classifications matter greatly. So
free-marketers have reason to applaud Friday's decision by the Federal
Communications Commission to reclassify high-speed Internet connections
offered by telephone companies. The ruling means that a digital-subscriber
line (DSL) hook-up offered by the Baby Bells will be treated as an
"information service" instead of a more tightly regulated
"telecommunications service." And that means phone companies will no longer
have to share their networks with rival Internet-service providers at rates
set by the government.
[SOURCE: Wall Street Journal, AUTHOR: Editorial]
http://online.wsj.com/article/0,,SB112354379047108101,00.html?mod=todays...
(requires subscription)

COMCAST, TW DEFEND ADELPHIA DEAL
If you let us get bigger, trust us, we'll act in the public interest,
argued Time Warner and Comcast before the Federal Communications Commission
last week. The two largest cable operators are buying the assets of the
third-largest operator, Adelphia, as well as swapping systems for better
"clustering." Satellite operators, small cable programmers and public
interest groups [including the Benton Foundation] have argued that the
merger would be bad for consumers and competition. The cable giants counter
saying critics' objections were based on selective or inaccurate readings
of the law and market conditions, and the panoply of conditions recommended
should be dismissed.
[SOURCE: Multichannel News, AUTHOR: Ted Hearn]
http://www.multichannel.com/article/CA633235.html?display=Breaking+News
(requires subscription)

AT CONGRESS

BOUCHER PUSHES MANDATED NET NEUTRALITY
"The FCC's recent adoption of a Policy Statement regarding the principles
of Net Neutrality is an appropriate first step in ensuring that all persons
continue to enjoy the unfettered ability to access and use the Internet in
a lawful manner without being impeded by broadband network operators," Rep
Rick Boucher (D-VA) said. "However, the next step must be taken by the
Congress in codifying the Net Neutrality principles and bestowing on the
FCC the clear authority to enforce the principles." He said the FCC should
be able to "prohibit operators from unreasonably favoring themselves over
their affiliates in the provision of Internet services."
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
http://www.broadcastingcable.com/article/CA633229?display=Breaking+News&...
(free access for Benton's Headlines subscribers)
* Boucher Favors 'Net Neutrality' Law
http://www.multichannel.com/article/CA633081.html?display=Breaking+News
(requires subscription)

DTV BILLS IN FINAL STAGES, CONGRESSIONAL SOURCES SAY
Digital television transition bills are about ready for introduction in
both chambers of Congress. In the Senate, Commerce Committee Chairman Ted
Stevens has surveyed both Republicans and Democrats to see what they want
in the bill. He's on a 4-5 day retreat with staff in his home state,
finalizing telecom legislation. Industry sources said markups are scheduled
tentatively for Sept. 8 on the House side and Sept. 15 on the Senate side.
Both House and Senate sources are confident that whatever mechanism is
employed, digital television legislation is certain to pass this year.
[SOURCE: Communications Daily, AUTHOR: Anne Veigle]
(Not available online)

MEDIA

MEDIA NO MORE
[Commentary] We are headed into the post-media age. When you think about
it, media are the artificial inventions of their means of distribution:
Books begat authors; fast and cheap presses enabled reporters and press
barons; TV bore anchors. But there is nothing to say that these media are
preordained as the best methods of sharing knowledge and getting things
done in society. They were the convenient ways. Emphasis on the past tense.
The natural means of interaction and of sharing information is, of course,
conversation, through the ability to ask and answer questions, to impart
and collect knowledge. I'm not one to make allusions to primitive life as
if that describes the natural state of man, but I will in this case: When
you listened to the tribe storyteller, you could remix before passing on;
when you heard from the town crier, you could stick your head out the
window and ask for details; when you set the price of a good or service,
you got to haggle with the seller. This is why Socrates said that education
is a conversation, and why Luther said that prayer is a conversation, and
why Cluetrain says that markets are conversations, and why I say that news
is a conversation. That is the natural order of things. Media changed that.
Media made society one-way. But now the Internet drains the one-way pipes
of media and pours us all in the same pond together. The Internet enables
conversation.
[SOURCE: BuzzMachine, AUTHOR: Jeff Jarvis]
http://www.buzzmachine.com/index.php/2005/08/08/media-no-more/

'LARGE IS NO LONGER IN CHARGE' SAYS VIACOM CHIEF
Viacom's chairman-CEO, Sumner Redstone, who is expected to step down next
year when the media giant splits in two, opened an analysts' call yesterday
saying, "Agility and innovation will separate the winners from the losers.
In the 21st century, large is no longer in charge. Leverage will belong to
the nimble and the swift and of course content will always remain king."
[SOURCE: AdAge, AUTHOR: Claire Atkinson]
http://adage.com/news.cms?newsId=45743

NEWS CORP SWITCHES ON CHARM OFFENSIVE
News Corp. is quietly courting Democratic lawmakers on Capitol Hill to
block a new local-TV ratings system that lowers ratings for many of its
stations. The company contends the new ratings system, launched by Nielsen
Media Research in four major television markets last year, greatly
undercounts the number of African-Americans and Hispanics watching shows
such as "Girlfriends" and "The Parkers" on the UPN network. Although Viacom
Inc. owns UPN, News Corp. owns several big-city affiliates of the network.
To slow the rollout of the new ratings system, News Corp. has hired a who's
who of Democratic operatives: Howard Wolfson, a spokesman for Sen. Hillary
Clinton's 2000 Senate campaign; Mike Feldman, a top adviser to Al Gore;
Chris Lehane, a political strategist for former President Bill Clinton; and
Minyon Moore, who helped found the liberal America Coming Together. The
charm offensive by News Corp. shows how even as Republicans control most
levers of the federal government -- with President Bush in the White House
and Republicans holding a majority in both the House and Senate --
companies often must win the support of Democrats to be successful.
[SOURCE: Wall Street Journal, AUTHOR: Brody Mullins brody.mullins( at )wsj.com]
http://online.wsj.com/article/0,,SB112354389401108107,00.html?mod=todays...
(requires subscription)

QUICKLY

PROJECT TO BRIDGE DIGITAL DIVIDE
Access( at )Home, a five-year project spearheaded by former Treasury Secretary
Robert Rubin, plans to invest $1 billion to build rental homes with
high-speed Internet access for roughly 100,000 people with low incomes. The
nationwide project is aimed at helping people with low incomes cross the
digital divide by providing affordable housing with broadband, vouchers to
buy computers, online training and community Web sites. The project will be
funded by grants, low-interest loans and equity investments from the
National Equity Fund, a unit based in Chicago of Local Support Initiatives.
The technology and training will be provided by One Economy Corp., a
nonprofit company based in Washington, D.C., that focuses on extending
access to technology to people with low incomes. Other contributors to the
program include Cisco Systems Inc. and Deutsche Bank AG.
[SOURCE: Wall Street Journal, AUTHOR: Shawn Young shawn.young( at )wsj.com]
http://online.wsj.com/article/0,,SB112352436785507723,00.html?mod=todays...
(requires subscription)

WGA FILES NLRB COMPLAINT AGAINST ABC
The Writers Guild of America, East filed a complaint against ABC with the
National Labor Relations Board Monday. The complaint, alleging unlawful
bargaining practices, stems from contract negotiations that began Jan. 5,
2005 on a contract that expired the first of the year.
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
http://www.broadcastingcable.com/article/CA633244?display=Breaking+News&...
(free access for Benton's Headlines subscribers)

DIRECTV DOESN'T HAVE TO GIVE DATA TO ECHOSTAR
U.S. Magistrate Judge Ralph Zarefsky in Los Angeles denied EchoStar's
request that would have compelled DirecTV to provide profit margins from
sales of digital video recorders as well as internal documents regarding
DirecTV obtaining a license from TiVo. EchoStar, the No. 2 U.S. satellite
TV provider, had sought the documents for a lawsuit that TiVo filed in
January 2004 in Texas, accusing EchoStar of infringing a TiVo patent on
technology for recording one program while replaying another.
[SOURCE: Bloomberg News]
http://www.latimes.com/business/printedition/la-fi-direct9aug09,1,248731...
(requires registration)

THE DIGGING LIFE
16 years ago, TV producer Charles Lewis left "60 Minutes" to found the
Center for Public Integrity. In the years since, the Center has become the
largest non-profit investigative journalism organization in the world,
uncovering some of last decade's most important political stories.
[SOURCE: On the Media]
http://www.onthemedia.org/stream/ram.py?file=otm/otm080505c.mp3

CREATION OF MEDIA
It's often been observed that technological innovations are the primary
force driving the evolution of the mass media. But make your way through
the 402 pages Paul Starr's book The Creation of the Media, and that notion
will be left in dust - along with many other common assumptions. In the
book, Starr argues that the government has played a much more fundamental
role in the growth of the American media than is commonly thought.
[SOURCE: On the Media]
http://www.onthemedia.org/stream/ram.py?file=otm/otm080505e.mp3

WORDWATCH: ECHO CHAMBER
A free forum of ideas suggests a back-and-forth exchange between
individuals with various perspectives. But what happens when people are
sequestered to separate discursive spaces on the basis of their ideas? As
we're seeing all over the Internet these days, debate breaks down, and in
its place we find simply a multiplicity of "echo chambers." University of
Chicago professor Cass Sunstein talks about the metaphorical reverberations
of the phrase.
[SOURCE: On the Media]
http://www.onthemedia.org/stream/ram.py?file=otm/otm080505e.mp3

TAKING THE VIOLENCE OUT OF VIDEOGAMES: WHAT PARENTS CAN DO BEFORE KIDS PLAY
Research shows that videogames have become an important component of kids'
play and socialization. One study of Japanese kindergartners found that
children who played videogames together developed better social skills. A
recent survey by Harvard researchers of more than 1,200 7th and 8th graders
found that only about 1% of children studied had never played videogames.
Until more is known, videogame researchers say parents can adopt some
practical approaches to limiting children's exposure to game violence. 1)
Move the games to a high-traffic area so you can see what and when your
kids are playing. 2) Look beyond the rating system. Parents can learn more
about the game-rating system at www.esrb.com, but ratings offer only
general descriptions of the type of content. 3) Look at bestseller lists.
Parents can see what children are playing by looking at such Web sites as
Amazon.com and gamespot.com that post lists of the most popular games. 4)
Treat games like other media. While there isn't any conclusive research
about how much video playing is too much, researchers say parents should
think about a child's entire media diet of television, movies, books and
videogame playing, and set reasonable limits to encourage other types of
play and family interaction. 5) Play the games yourself. Parents who do
take the time to learn about the games children play will be surprised at
how much skill it requires -- and how much children enjoy watching their
parents struggle to play.
[SOURCE: Wall Street Journal, AUTHOR: Tara Parker-Pope
tara.parker-pope( at )wsj.com]
http://online.wsj.com/article/0,,SB112354118842908054,00.html?mod=todays...
(requires subscription)

DOT-COMS ARE SO 90S; IN SILICON VALLEY, DOING GOOD IS THE NEW THING
Ten years after the Aug. 9, 1995, initial public offering of Netscape set
off the Internet boom and five years after the bust, venture capitalists
are leading a push to remake Silicon Valley as a center for a new form of
social entrepreneurship and venture philanthropy, a place where you can
make good money by doing good. While plenty of people here still are out to
make fast bucks, there also has been a surge in investments aimed at
solving some of the world's most formidable problems. Venture capitalists
chastened by the bursting of the bubble say they want to make a mark that
lasts beyond the next quarterly filing with the Securities and Exchange
Commission.
[SOURCE: Washington Post, AUTHOR: Ariana Eunjung Cha]
http://www.washingtonpost.com/wp-dyn/content/article/2005/08/08/AR200508...
(requires registration)
--------------------------------------------------------------
Communications-related Headlines is a free online news summary service
provided by the Benton Foundation (www.benton.org). Posted Monday through
Friday, this service provides updates on important industry developments,
policy issues, and other related news events. While the summaries are
factually accurate, their often informal tone does not always represent the
tone of the original articles. Headlines are compiled by Kevin Taglang
(headlines( at )benton.org) -- we welcome your comments.
--------------------------------------------------------------

Benton's Communications-related Headlines For Monday August 8, 2005

BROADBAND DAY AT THE FCC
FCC Reduces Regulation of Wireline Internet Access Service
As Web Providers' Clout Grows, Fears Over Access Take Focus
FCC Adopts Policy Statement on Broadband Internet Access
FCC Requires Certain Broadband and VoIP Providers to Accommodate Wiretaps
FCC Modifies Rules to Provide Greater Access to Spectrum for Rural Provide=
rs
FCC Approves Radio-Spectrum Auction

CABLE
Judiciary Committees May Hold Hearings into Adelphia Deal
Universal Fund Changes Are Coming

QUICKLY -- Children=92s Media Policy Coalition Asks NAB for Clarity; Martin=
=20
Names Chief Engineer & Economist; Small Ops Practicing Art of Retrans=20
'War=92; BellSouth and CWA Reach Settlement; Nielsen in Political Fight; NB=
C=20
Universal Aims to Be Prettiest Feather in G.E.'s Cap; AOL Purchases=20
Wildseed; Why I Don't Trust Readers

ADDITIONAL COVERAGE/REACTION TO FCC DSL ORDER

BROADBAND DAY AT THE FCC

FCC REDUCES REGULATION OF WIRELINE INTERNET ACCESS SERVICE
The FCC voted at its open meeting Friday to reduce regulation of wireline=
=20
Internet access service by reclassifying it as an =93information service,=
=94 in=20
line with the FCC=92s treatment of cable modem service. The US Supreme Cour=
t=20
in June upheld the agency=92s cable modem classification in the Brand X cas=
e,=20
triggering action on the wireline companion piece which had been placed on=
=20
hold during the litigation. DSL is the most common wireline Internet access=
=20
service. The order basically eliminates the requirement that the Bells=20
unbundle the broadband transmission part of their Internet services and=20
offer the transmission component separately as a common carrier service=20
that other carriers can lease. The action eliminated other Computer Inquiry=
=20
requirements as well. The Computer Inquiry requirements, aimed at keeping=
=20
telephone companies from exerting market power, no longer are necessary in=
=20
=93today=92s market of multiple platforms,=94 FCC Chairman Kevin Martin sai=
d at=20
the meeting. The order offers a grace period, however -- facilities-based=
=20
wireline broadband providers must keep offering Internet access=20
transmission service to unaffiliated ISPs for a year. Importantly, wireline=
=20
broadband providers must continue to contribute to the universal service=20
fund (USF) at current levels for 270 days or until new contribution rules=
=20
are devised, whichever comes first. If the Commission doesn't pass new=20
contribution rules in 270 days, the Commission =93will take whatever action=
=20
is necessary=94 including extending the 270-day period or expanding the=20
contribution base.
[SOURCE: Communications Daily, AUTHOR: Edie Herman]
(Not available online)
* This news was not unexpected. There's a good deal of coverage and=20
reaction which you can find at the bottom of this email.

AS WEB PROVIDERS' CLOUT GROWS, FEARS OVER ACCESS TAKE FOCUS
An increasingly heated debate pits phone and cable companies, which offer=
=20
high-speed Internet access to consumers, against tech giants such as=20
Microsoft, Google and Yahoo as well as providers of online content, such as=
=20
Walt Disney. Advocates of so-called net neutrality argue that what's at=20
stake is no less than the future of the World Wide Web. As more and more=20
Americans turn to high-speed connections, or broadband, for their access to=
=20
the Internet, the power of the phone and cable companies that provide this=
=20
access has grown. Technology has evolved allowing the broadband companies=
=20
to block Web sites from their customers. If they start using this power to=
=20
promote their own commercial content offerings and weed out rivals, say=20
critics, the innovative and free-wheeling Web could be crippled. So far,=20
evidence of such tinkering is scarce, and broadband providers -- and many=
=20
regulators -- scoff that the market would never let them censor the Web.=20
But conflicts of interest have arisen in the past when owners of=20
information pipelines have incentives to favor one company over another.=20
Airlines, for instance, built the original computer-reservation services=20
for travel agencies, and programmed them to push flights by the airline=20
that owned the system to the top of agents' screens -- until the government=
=20
intervened in 1984. On Friday, the FCC waded into the debate when it issued=
=20
new rules for data services provided by telephone companies. The new rules=
=20
release phone companies from an obligation to share their high-speed=20
Internet lines, known as DSL, with rival providers of Internet service. The=
=20
move, a victory for Bell companies, puts them on an equal footing with=20
cable-television providers, which offer their own version of high-speed=20
Internet through cable connections. But critics say the unanimous FCC=20
decision strips away some of the rules designed to protect consumers'=20
rights -- including the ability to freely access the Internet. In place of=
=20
a strict policy on free access, the FCC instead on Friday issued a=20
statement saying consumers have a right to freely use legal Internet=20
applications and services.
[SOURCE: Wall Street Journal, AUTHOR: Amy Schatz Amy.Schatz( at )wsj.com and=20
Anne Marie Squeo annemarie.squeo( at )wsj.com]
http://online.wsj.com/article/0,,SB112346142615607167,00.html?mod=3Dtoda...
us_page_one
(requires subscription)

FCC ADOPTS POLICY STATEMENT ON BROADBAND INTERNET ACCESS
The Federal Communications Commission today adopted a policy statement that=
=20
outlines four principles to encourage broadband deployment and preserve and=
=20
promote the open and interconnected nature of public Internet: 1) consumers=
=20
are entitled to access the lawful Internet content of their choice; 2)=20
consumers are entitled to run applications and services of their choice,=20
subject to the needs of law enforcement; 3) consumers are entitled to=20
connect their choice of legal devices that do not harm the network; and 4)=
=20
consumers are entitled to competition among network providers, application=
=20
and service providers, and content providers. Although the Commission did=
=20
not adopt rules in this regard, it will incorporate these principles into=
=20
its ongoing policymaking activities. All of these principles are subject=
=20
to reasonable network management.
[SOURCE: Federal Communications Commission]
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-260435A1.doc
* FCC Warming to Network Neutrality
http://www.multichannel.com/article/CA632773.html?display=3DBreaking+News
(requires subscription)

FCC REQUIRES CERTAIN BROADBAND AND VOIP PROVIDERS TO ACCOMMODATE WIRETAPS
Responding to a petition from the Department of Justice, the Federal Bureau=
=20
of Investigation, and the Drug Enforcement Agency, the Federal=20
Communications Commission determined that providers of certain broadband=20
and interconnected voice over Internet Protocol (VoIP) services must be=20
prepared to accommodate law enforcement wiretaps. The Commission found that=
=20
these services can essentially replace conventional telecommunications=20
services currently subject to wiretap rules, including circuit-switched=20
voice service and dial-up Internet access. As replacements, the new=20
services are covered by the Communications Assistance for Law Enforcement=
=20
Act, or CALEA, which requires the Commission to preserve the ability of law=
=20
enforcement agencies to conduct court-ordered wiretaps in the face of=20
technological change.
The Order is limited to facilities-based broadband Internet access service=
=20
providers and VoIP providers that offer services permitting users to=20
receive calls from, and place calls to, the public switched telephone=20
network. These VoIP providers are called interconnected VoIP providers.
[SOURCE: Federal Communications Commission]
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-260434A1.doc
* FCC Issues Rule Allowing FBI to Dictate Wiretap-Friendly Design for=20
Internet Services
http://www.eff.org/news/archives/2005_08.php#003876
* FCC schizo on DSL, wiretapping
http://news.com.com/FCC+schizo+on+DSL%2C+wiretapping/2010-1071_3-5821077...
ml?tag=3Dnefd.ac

FCC MODIFIES ADVANCED WIRELESS SERVICES RULES TO PROVIDE GREATER=20
FLEXIBILITY AND ACCESS TO SPECTRUM FROM SMALL RURAL PROVIDERS
In an Order on Reconsideration adopted Friday, the Federal Communications=
=20
Commission (FCC) advanced its efforts to make spectrum available for an=20
array of innovative wireless services and technologies, including voice,=20
data, video, and other wireless broadband services offered over Third=20
Generation ("3G") mobile networks. The Order modifies the band plan, and=
=20
licensing and service rules -- originally adopted in October 2003 -- for=20
the 90 MHz of Advanced Wireless Service (AWS) spectrum at 1710-1755 MHz and=
=20
2110-2155 MHz. The modifications respond to Petitions for Reconsideration=
=20
filed by five parties in response to the original AWS service rules. The=20
changes made in the Order enhance flexibility for potential AWS licensees=
=20
and provide additional opportunities for smaller and rural wireless=20
carriers to access this spectrum. The original band plan for this spectrum=
=20
adopted by the FCC in October 2003 included a mixture of license sizes and=
=20
geographic areas in order to accommodate the needs of wireless providers of=
=20
various sizes serving a range of different geographic areas. Today's Order=
=20
maintains such a mixture but increases the amount of spectrum licensed on a=
=20
small geographic area basis (Cellular Market Areas, or CMAs) from 10 MHz to=
=20
20 MHz in order to provide greater opportunities for smaller rural or=20
regional providers to obtain access to this spectrum at auction. The Order=
=20
also provides for an additional 10 MHz of spectrum licensed by Economic=20
Areas (EAs).
[SOURCE: Federal Communications Commission]
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-260432A1.doc
* Statement by Assistant Commerce Secretary Michael D. Gallagher on the=20
FCC's Adoption of Advanced Wireless Services Rules
"The FCC deserves credit for its prompt responsiveness to the timetable=20
that will lead to spectrum auctions as early as June, 2006. The transfer=
=20
of substantial quantities of extremely valuable spectrum from federal=20
government to commercial use, and the timely relocation of incumbents, will=
=20
speed the availability of advanced wireless services and commercial=20
deployment of innovative technologies."
http://www.ntia.doc.gov/ntiahome/press/2005/gallagher_aws_08052005.html

FCC APPROVES RADIO-SPECTRUM AUCTION
The Federal Communications Commission last week formally approved an=20
auction of a large swath of the radio spectrum crucial to cell phone and=20
other wireless services. There was little doubt the FCC would approve the=
=20
auction. But the FCC had been facing pressure to rejigger the auction rules=
=20
to allow participation of all types of cell phone operators, including=20
rural operators. The rules for the auction do just that, according to FCC=
=20
Chairman Kevin Martin. The radio spectrum to be auctioned is able to=20
support advanced wireless data services, and as a result could be used to=
=20
deliver high-speed Internet service into rural areas and densely packed=20
cities that still lack broadband access. Carriers that win the right to=20
license the airwaves also will use them to augment their voice services.=20
The auction could fetch an estimated $15 billion. A percentage of the=20
proceeds would be used to relocate government agencies, such as the=20
Department of Defense, that currently use the spectrum in their daily=20
operations, according to Media Global Advisors.
[SOURCE: C-Net|News.com, AUTHOR: Ben Charny]
http://news.com.com/FCC+approves+radio-spectrum+auction/2100-1039_3-5820...
.html?tag=3Dnefd.top

CABLE

JUDICIARY COMMITTEES MAY HOLD HEARINGS INTO ADELPHIA DEAL
The House and Senate Judiciary Committees may hold hearings into the=20
Comcast-Time Warner $17.6 billion purchase of Adelphia cable systems after=
=20
the August recess, although nothing has been scheduled yet. There's=20
significant concern about the proposed carve-up of Adelphia, which will add=
=20
2.2 million subscribers for Comcast and 3 million for Time Warner. About=20
19,000 comments have been filed with the FCC expressing concern about the=
=20
merger arising from e-mail campaigns led by Free Press and the=20
Communications Workers of America, which oppose the transaction. But other=
=20
industry sectors have concerns, too. The National Association of=20
Broadcasters said the proposed transactions present =93clear competitive=20
concerns=94 especially for broadcasters. The FCC should impose conditions o=
n=20
the transaction to prevent =93competitive abuses=94 to ensure that local=20
broadcast stations can negotiate with Comcast and Time Warner for=20
retransmission consent and carriage of digital signals, including multicast=
=20
programming streams. Satellite TV operators share NAB=92s concern about=20
placing conditions on the deal to prevent anti-competitive practices.=20
Municipalities worry that Comcast and Time Warner=92s strategy of building=
=20
clusters of cable customers could impeded competition for local programming=
=20
including sports.
[SOURCE: Communications Daily, AUTHOR: Anne Veigle, Jonathan Make]
(Not available online)
See also:
* NAB's Response to Comments and Petitions to Deny in the Adelphia/Time=20
Warner/Comcast Merger
http://www.nab.org/newsroom/pressrel/filings/AdelphiaMergerReplyComments...
5.pdf
* FTC Assures Sensenbrenner on Adelphia Merger
House Judiciary Committee chairman James Sensenbrenner (R-WI) has won=20
assurance that the Federal Trade Commission will closely examine the=20
takeover of Adelphia Communications by Comcast and Time Warner, especially=
=20
with regard to the ability of independent programmers to gain cable=20
carriage. In May, Sensenbrenner sent a letter to FTC chairman Deborah Platt=
=20
Majoras expressing his concern about the Adelphia merger=92s impact on=20
cable-ownership concentration and program diversity.
[SOURCE: Multichannel News, AUTHOR: Ted Hearn]
http://www.multichannel.com/article/CA632819.html?display=3DBreaking+News
(requires subscription)

UNIVERSAL FUND CHANGES ARE COMING
The cable industry could soon find itself paying into the Universal Service=
=20
Fund, a system takes a portion of money collected from interstate=20
telecommunications (primarily long-distance revenues) and redistributes it=
=20
to help ensure customers in low-income, rural, insular and high-cost areas=
=20
have telephone access. The universal service system also aspires to provide=
=20
greater access to advanced services. But in recent years, a perfect storm=
=20
has developed. Long-distance rates have plummeted as fewer people make=20
long-distance calls in favor of e-mail and flat-rate plans via=20
voice-over-Internet protocol services. Other than cable companies, many of=
=20
those VoIP outlets don't pay into the USF. Worried that VoIP could get=20
caught up in a regulatory maelstrom, cable has advocated legislation that=
=20
would reform the entire universal-service system. To achieve that, the=20
industry wants Congress to restructure the current revenue-based regime=20
into a system based on phone numbers. That way, any customer who has a=20
phone number -- whether associated with VoIP or traditional=20
circuit-switched telephony -- would pay a monthly fee into the USF.
[SOURCE: Multichannel News, AUTHOR: Michael Grebb]
http://www.multichannel.com/article/CA632676.html?display=3DTop+Stories
(requires subscription)

QUICKLY

CHILDREN'S MEDIA POLICY COALITION ASKS NAB FOR CLARITY
The FCC has new rules covering ads during children=92s programming includin=
g=20
commercial matter, air time sold for the purposes of selling a product or=
=20
service and promotions of TV programs or video programming services. Some=
=20
broadcasters are (mis)interpreting the rules to include Public Service=20
Announcements aimed at kids. Why? Well, the Children=92s Media Policy=20
Coalition would like to know and has asked the National Association of=20
Broadcasters to endorse the Ad Council=92s belief that their PSAs and Web=
=20
sites don't pose any conflict with the FCC's proposed rule. The coalition=
=20
believes the Ad Council=92s concerns can be resolved and clarified quickly=
=20
through NAB, without federal intervention. The coalition doesn't understand=
=20
how =93a reasonable, good faith interpretation=94 of the language can be=20
construed to encompass children=92s PSAs. =93While the coalition appreciate=
s=20
the television industry=92s need for accurate interpretation of FCC rules, =
it=20
is discouraging that this needless and unfounded inquiry distracts us all=
=20
from improving the media environment for children,=94 the coalition said.
[SOURCE: Communications Daily]
(Not available online)

CHAIRMAN MARTIN ANNOUNCES THE ACTING CHIEF OF THE OFFICE OF ENGINEERING AND=
=20
TECHNOLOGY AND THE CHIEF ECONOMIST
Federal Communications Commission Chairman Kevin J. Martin named Bruce=20
Franca as Acting Chief of the Office of Engineering and Technology and=20
Leslie Marx as Chief Economist. Bruce Franca has served as Deputy Chief of=
=20
the Office of Engineering and Technology since 1987. Mr. Franca joined=20
the Commission in 1974 as an engineer in the Aviation and Marine Division=
=20
of the former Safety and Special Radio Services Bureau. He has also held=
=20
positions in the Office of Plans and Policy and the Mass Media=20
Bureau. Before joining the Commission, Mr. Franca worked for the Naval=20
Ship Research and Development Center in Annapolis, Maryland; the Naval=20
Electronics Laboratory Center in San Diego, California; and the Naval=20
Applied Science Laboratory in Brooklyn, New York. He is a graduate of=20
Pratt Institute in Brooklyn, New York, and has done graduate work in=20
electrical engineering at the George Washington University. Leslie Marx=20
joins the Commission under an Intergovernmental Personnel Act assignment=20
from Duke University, where she serves as an Associate Professor of=20
Economics at the Fuqua School of Business. Prior to joining Duke=20
University, she was a professor at the Simon School of Business at the=20
University of Rochester. Ms. Marx graduated as valedictorian from Duke=20
University and received her PhD in Economics from Northwestern University.
[SOURCE: Federal Communications Commission]
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-260439A1.doc

SMALL OPS PRACTISE ART OF RETRANS 'WAR'
Small cable operators assembled last week for basic training in the art of=
=20
waging war against a potential enemy =97 the nation=92s broadcasters =97 an=
d in=20
outmaneuvering a savvy competitor, direct-broadcast satellite. Military=20
metaphors abounded at the joint annual meetings of the American Cable=20
Association, a lobbying group, and the National Cable Television=20
Cooperative, a buying co-op. Both organizations serve small independent=20
operators. Looming retransmission-consent negotiations were the topic du=20
jour at both the NCTC=92s three-day =93Hooked on Cable=94 confab and the AC=
A=92s=20
half-day session, and that=92s when the lingo about doing battle against=20
TV-station owners turned up.
[SOURCE: Multichannel News, AUTHOR: Linda Moss]
http://www.multichannel.com/article/CA632850.html
(requires subscription)

BELLSOUTH AND COMMUNICATIONS WORKERS OF AMERICA REACH SETTLEMENT
BellSouth Corporation and the Communications Workers of America (CWA) have=
=20
reached a five-year tentative agreement covering approximately 500=20
employees of BellSouth Internet Services. The previous contract was set to=
=20
expire at midnight on Aug. 6, 2005. "We are pleased that once again the=20
company and CWA have been able to work together successfully to find=20
solutions to the complex issues facing our business," said Dick Sibbernsen,=
=20
vice president of Human Resources for BellSouth. "This agreement allows=20
BellSouth to effectively compete in the marketplace and continue to provide=
=20
customers with high-quality products and services." "This agreement is a=20
very important one for our members," said CWA District 3 Vice President=20
Noah Savant. "It achieves our members' key goals of obtaining comparable=20
wage increases with other employees and maintaining health care coverage.=
=20
The committee also was able to negotiate work rule changes that will be=20
very beneficial to our members of the life of the contract," he said.
[SOURCE: Communications Workers of America]
http://www.cwa-union.org/news/PressReleaseDisplay.asp?ID=3D515

NIELSEN, LONG A GAUGE OF POPULARITY, FIGHTS TO PRESERVE ITS OWN
Since the early spring of 2004, Nielsen has spent more than $4 million to=
=20
hire some of the nation's premier lobbyists to counter a savvy campaign=20
conducted by Rupert Murdoch's News Corporation, a team of longtime Clinton=
=20
strategists hired by the media conglomerate, and a coalition of black and=
=20
Hispanic community leaders. Before 2004, Nielsen had not spent a dime on=20
lobbying. Nielsen has also sprinkled more than $200,000 among minority=20
organizations like the National Urban League, the National Council of La=20
Raza, the Rainbow/PUSH Coalition and the Dragon Boat Festival in San=20
Francisco, according to Nielsen officials. The lobbying and outreach=20
efforts represent a remarkable departure for Nielsen, a company not=20
particularly known for its responsiveness to complaints and which prefers=
=20
to settle disagreements with television network and advertising clients in=
=20
private. But Nielsen executives say they had no choice. "It's pretty rare=
=20
for a business issue to turn into a long-term political attack by one of=20
your clients," said Susan D. Whiting, president and chief executive of Niel=
sen.
[SOURCE: New York Times, AUTHOR: Lorne Manly & Raymond Hernandez]
http://www.nytimes.com/2005/08/08/business/media/08nielsen.html
(requires registration)

NBC UNIVERSAL AIMS TO BE PRETTIEST FEATHER IN GE'S CAP
NBC Universal is focused on dual tracks. One is to continue to own or=20
create original content, from its new Sunday night broadcast deal with the=
=20
National Football League on NBC; network TV stalwarts like the "Law &=20
Order" franchise, the "Today" show and "The Tonight Show with Jay Leno";=20
programs like "Monk" and "Battlestar Galactica" that are shown on its USA=
=20
Network and Sci-Fi Channel cable outlets; and upcoming Universal movies=20
such as "King Kong" and "The Producers." The other track is to figure out=
=20
ways to capitalize on emerging digital business models around the globe for=
=20
everything from the broadband Internet to mobile phones by mining the=20
companies' libraries of programming and movies, and even by producing=20
original content for these platforms. NBC Universal is churning out cash,=
=20
having contributed $979 million to G.E.'s operating profits - 15 percent of=
=20
G.E.'s total - in the quarter that ended June 30, compared with $768=20
million a year earlier. Sales were $3.86 billion in the most recent period,=
=20
compared with $2.86 billion in the year-earlier period; the increase=20
largely reflects the combination of the two companies last May. Over all,=
=20
John Inch, a Merrill Lynch analyst, forecasts that NBC Universal will=20
generate operating profit of $3.33 billion on revenues of $14.9 billion in=
=20
2005, growing to $3.91 billion on revenues of $16.7 billion next year. Out=
=20
of all the businesses in the G.E. portfolio - from medical equipment to=20
financial services to light bulbs -- Mr. Inch expects NBC Universal to=20
deliver the highest operating profit margins this year and next, rising to=
=20
about 24 percent in 2006.
[SOURCE: New York Times, AUTHOR: Richard Siklos & Laura Holson]
http://www.nytimes.com/2005/08/08/business/08universal.html
(requires registration)

AOL PURCHASES WIRELESS COMPANY WILDSEED
America Online, the world's largest Internet provider, has purchased a=20
privately held wireless technology company as part of its initiative to=20
more quickly get AOL service onto phones and other wireless devices, the=20
company plans to announce today.
[SOURCE: Reuters]
http://today.reuters.com/news/newsArticle.aspx?type=3DinternetNews&storyID=
=3D2005-08-08T083838Z_01_N05610675_RTRIDST_0_NET-MEDIA-AOL-WIRELESS-DC.XML

WHY I DON'T TRUST READERS
[Commentary] he mainstream American press is better than it's ever been. If=
=20
you don't believe me, visit your local library and roll through a couple of=
=20
miles of microfilm of the papers you're currently familiar with. By any=20
comparison, today's press is more accurate, ethical, reliable, independent,=
=20
transparent, and trustworthy than ever. Skepticism is a healthy disposition=
=20
in life. I wouldn't be a press critic if I regarded the press as=20
hunky-dory. But mindless skepticism is mainly an excuse for ignorance. Even=
=20
the people who denounce the New York Times as the bible of liberals=20
ultimately get most of their useful news from it. I've had it with all you=
=20
unreliable, inconsistent, and detestable blockheads. I've given you every=
=20
possible chance and you've failed me miserably. Tonight I'm ordering a=20
custom bumper-sticker that reads, "I Don't Trust the Mainstream Media=20
Audience."
[SOURCE: Slate, AUTHOR: Jack Shafer]
http://slate.msn.com/id/2124083/

ADDITIONAL COVERAGE/REACTION TO FCC DSL ORDER

* FCC Press Release
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-260433A1.doc

* Chairman Martin: "The Order that we adopt today is a momentous one. It=
=20
ends the regulatory inequities that currently exist between cable and=20
telephone companies in their provision of broadband Internet services. As=
=20
I have said on numerous occasions, leveling the playing field between these=
=20
providers has been one of my highest priorities. With this Order, wireline=
=20
broadband Internet access providers, like cable modem service providers,=20
will be considered information service providers and will no longer be=20
compelled by regulation to unbundle and separately tariff the underlying=20
transmission component of their Internet access service. Most importantly,=
=20
however, the actions we take in this Order are an explicit recognition that=
=20
the telecommunications marketplace that exists today is vastly different=20
from the one governed by regulators over 30 years ago. The Computer=20
Inquiry requirements that were adopted several decades ago were based on=20
the assumption that, without the imposition of strict regulation, telephone=
=20
companies would be able to exert considerable market power over=20
unaffiliated entities in the provision of information services. To the=20
extent that this assumption was true at the time, it is no longer true in=
=20
today's broadband market. As the item recognizes, the broadband Internet=20
access market today is characterized by multiple platforms that are=20
vigorously competing for customers."
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-260433A2.doc

* Commissioner Abernathy: "And let there be no doubt: competition among=20
broadband providers is flourishing. The Commission's most recent=20
statistics show that over 80% of zip codes in America are served by two or=
=20
more high-speed providers, about two-thirds are served by three or more,=20
and over half are served by four or more. Moreover, I fully expect that=20
providers taking advantage of new platforms will soon offer consumers even=
=20
more choices in even more areas. Over 1.2 million high-speed lines in=20
service today use wireless, satellite, fiber-optic, and powerline=20
technologies; that number is poised to rise dramatically in the very near=
=20
future. The result of such competition will be better and better services=
=20
at lower and lower prices, with offerings designed to match customers'=20
needs rather than regulators' preferences."
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-260433A3.doc

* Commissioner Copps: "The handwriting is on the wall. DSL *will* be=20
reclassified, either now or soon from now, whether I agree or not. This is=
=20
not a situation of my making or my preference, and I believe that it does=
=20
not inure to the benefit of this institution or to consumers across the=20
land. But when fundamental responsibilities like homeland security,=20
universal service, disabilities access, enterprise competition, and=20
Internet discrimination protections are on the chopping block, I feel=20
compelled to work hard and be creative to advance the public interest=20
rather than throwing up my hands. I therefore will concur in this=20
proceeding to protect our ability to meet these core responsibilities. As=
=20
we enter the world of Title I today, we all know what the FCC's goals must=
=20
be. Among other things, we must continue to protect homeland security. We=
=20
must meet our universal service responsibilities. We must maintain=20
disabilities access. We must protect fledgling competition. And we must=
=20
state clearly that innovators, technology companies, and consumers will not=
=20
face unfair discrimination on the Internet by network providers."
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-260433A4.doc

* Commissioner Adelstein: "Were the pen solely in my hand, this is not the=
=20
Order I would have drafted or the procedural framework I would have=20
chosen. This Order, however, reflects meaningful compromise by each of my=
=20
colleagues, and I appreciate the efforts to address many of my concerns=20
about issues including the stability of the universal service fund, access=
=20
for persons with disabilities, and the ability of competitive carriers to=
=20
access essential input facilities. In the wake of the Supreme Court=20
decision, this reclassification was inevitable. What we've done here is=20
ensure it was done in a fashion that protects, or holds the promise of=20
addressing, many critical policy goals that Congress and the Commission=20
have long held as fundamental to a "rapid, efficient, Nation-wide, and=20
world-wide wire and radio communication service.""
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-260433A5.doc

* Statement by Assistant Commerce Secretary Michael D. Gallagher on the=20
FCC's Adoption of Wireline Broadband Internet Access Order:
"Today's FCC action demonstrates Chairman Martin's leadership and=20
represents an important step towards realizing the President's goal of=20
universal, affordable access to broadband for all Americans by creating a=
=20
level playing field for providers of broadband access and by removing=20
regulatory obstacles to further investment in broadband infrastructure. I=
=20
congratulate Chairman Martin and his fellow Commissioners for their=20
foresight and their willingness to work in a bipartisan fashion."
http://www.ntia.doc.gov/ntiahome/press/2005/gallagher_08052005.htm

* FCC eases regulations on DSL broadband
http://today.reuters.com/news/newsArticle.aspx?type=3DpoliticsNews&storyID=
=3D2005-08-05T193428Z_01_N05212849_RTRIDST_0_POLITICS-TELECOMS-FCC-DSL-DC.X=
ML

* FCC Eases High-Speed Internet Rules
http://www.njtelecomupdate.com/lenya/telco/live/tb-UYOF1123186104210.html

* Telcos Get Brand X Status
http://www.broadcastingcable.com/article/CA632609?display=3DBreaking+New...
eferral=3DSUPP
(free access for Benton's Headlines subscribers)

* FCC Liberates Bells=92 DSL
http://www.multichannel.com/article/CA632608.html?display=3DBreaking+News
(requires subscription)

* FCC Liberates DSL in Parity Bid
http://www.multichannel.com/article/CA632849.html?display=3DTop+Stories
(requires subscription)

* FCC schizo on DSL, wiretapping
http://news.com.com/FCC+schizo+on+DSL%2C+wiretapping/2010-1071_3-5821077...
ml?tag=3Dnefd.ac

* DSL Item Released =97 coulda been worse
[Commentary] On the plus side, the FCC did the following: 1) A clear=20
statement that the FCC has authority to take necessary action to remedy any=
=20
problems under their =93Title I ancillary jurisdiction.=94 (For those curio=
us,=20
Title I of the Communications Act is the general authority of the FCC to=20
act over all wireline and wireless communications. The DC Circuit Court has=
=20
been aggressively whittling this away to nothing in recent years, sometimes=
=20
for good things (eliminating broadcast flag) and sometimes for bad things=
=20
(eliminating the FCC requirement for narrative description for the blind).=
=20
2) A policy statement that the FCC does not want to see network providers=
=20
using their control of networks to interfere with access to content or=20
competing services (like voice over IP) and that the FCC reserves the right=
=20
to address situations if they arise. 3) Preserve existing CALEA=20
obligations. (CALEA is the statute that says you have to give law=20
enforcement the ability to tap your network if it is a communications=20
network.) 4) Preserve disabilities access (telecom services have=20
disabilities access requirements, unregulated information services don't.=
=20
This preserves existing requirements for disabilities access.) 5) Preserve=
=20
universal service contribution for the next 9 months, during which the FCC=
=20
will consider how reclassification will impact DSL and create new rules to=
=20
maintain or even expand the current levels of DSL funding. (Telecom=20
services contribute to universal service fund -- a fund that subsidizes=20
broadband connections to schools, libraries and rural areas. Once mocked by=
=20
the Republicans as the =93Gore Tax=94 for Al Gore's insistence that it go i=
n=20
the Telecom Act of 1996, now cherished by such Republicans as Senator=20
Stevens because it gives money to rural states. DSL reclassification could=
=20
have eliminated millions of dollars from the fund.)
The FCC also will release a new Notice of Proposed Rulemaking asking what,=
=20
if any, rules should apply to DSL now as an information service. Bottom=20
line- I think independent ISPs are going to end up eaten by the dinosaurs,=
=20
rather than the other way around. OTOH, it looks like Amazon, Google and=20
even Wetmachine will be safe from being blocked or forced to pay fees for=
=20
=93preferred transport=94 over the DSL and cable lines.
Unanswered questions -- what will happen to the wholesale peering and=20
connectivity markets? Will wireless ISPs, community wireless networks, and=
=20
munie systems still get interconnection and affordable backhaul? Or will=20
they become mere intranets, unable to connect out to the broader world? The=
=20
statutory interconnection requirement for telecom services is gone, and the=
=20
backbone market is consolidating. Will the Commission protect=20
interconnectivity as well as access to content?
[SOURCE: Tales of the Sausage Factory, AUTHOR: Harold Feld]
http://www.wetmachine.com/totsf/item/333

* FCC Eliminates Competition on DSL Lines
"Today=92s FCC decision that telephone companies no longer must share acces=
s=20
to their broadband DSL lines with competing Internet Service Providers is=
=20
not good for creative artists and the American public, but it could have=20
been far, far worse. Following the Supreme Court=92s decision in the Brand =
X=20
case upholding the FCC=92s earlier elimination of competition from cable=20
broadband service, as Commissioner Copps correctly notes in his Concurring=
=20
Statement, =93the handwriting is on the wall.=94 There was no doubt that th=
e=20
Commission would extend the same ill-considered regulatory treatment to the=
=20
telephone companies=92 competing DSL broadband service. Now, thanks to the=
=20
Commission, cable and telephone companies will both have the power to stop=
=20
other Internet Service Providers (ISPs) from offering competing service on=
=20
their broadband networks. According to the FCC=92s July 2005 report on High=
=20
Speed Internet Access, in December 2004 approximately 94 percent of=20
Americans subscribing to high speed Internet access received it from either=
=20
a cable or a telephone company. Given that tremendous market share, today=
=92s=20
FCC action eliminating competing ISPs will give cable and telephone=20
companies even greater opportunities to provide the poor quality service at=
=20
an inflated price for which they are so well known. To compensate for=20
eliminating ISP competition on these companies=92 broadband lines, the=20
Commission should immediately fast-track additional ways for Americans to=
=20
receive high speed Internet access other than via cable and telco,=20
including freeing up additional spectrum for new wireless broadband=20
competition." More at URL below...
http://www.creativevoices.us/php-bin/news/showArticle.php?id=3D133&PHPSE...
D=3D18704f52590a75f95256ad0bf11c1328

* CU, CFA Respond to FCC Order Restricting DSL Access to Competitors
Consumers Union (CU) and the Consumer Federation of America (CFA) warned=20
that today=92s Federal Communications Commission (FCC) order restricting=20
access of competitors to digital subscriber lines (DSL) will force existing=
=20
independent broadband providers out of the market and drive up the price of=
=20
high-speed Internet for consumers. "The Federal Communications Commission=
=20
continues down the wrong path on deregulation, allowing giant phone=20
companies to tighten their stranglehold on competition, stifle innovation,=
=20
and reach even deeper into the pockets of consumers," said Gene Kimmelman,=
=20
Public Policy Director at CU. "Consumers will be forced to pay higher=20
prices for Internet access." "Open access requirements for Bell-owned DSL=
=20
lines are responsible for some of the only true competition that exists in=
=20
the residential high-speed Internet market today," said Mark Cooper,=20
Research Director at CFA. "Unfortunately, the FCC has eliminated these=20
requirements and virtually guaranteed those consumers lucky enough to have=
=20
both cable and DSL options will have to buy a package of high-priced=20
services they may not want just to get high-speed Internet." Despite=20
disagreeing with the FCC=92s approach to DSL lines, the consumer groups=20
applauded the FCC=92s adoption of principles providing guidance that cable=
=20
and telephone companies should allow their subscribers to use the Internet=
=20
as they wish. But, the groups cautioned the policy did not include=20
enforcement measures. More at the URL below...
http://www.hearusnow.org/other/newsroom/fccorderrestrictingdslaccesstoco...
titors/

* FCC Shares Spoils of Brand X Victory with the Baby Bells
"The "good news" from today's broadband ruling by the FCC is that the=20
"playing field" for high-speed Internet service (after a one-year=20
transition) will be perfectly level. The bad news is that in most=20
communities, only two teams will be left standing to compete on that=20
playing field."
http://www.democraticmedia.org/news/FCCDSL.html

* MAP Issues Statement Regarding FCC's Decision to Redefine Wireline Broadb=
and
"This is bad news for the people who use the Internet. It means higher=20
prices, less competition and disincentives for those entrepreneurs who have=
=20
used the Internet as a platform for innovation and economic growth. Even=20
so, it could have been worse. By asserting its authority to stop the most=
=20
flagrant kinds of abuse, the FCC has made it somewhat harder to block or=20
impede access to information."
http://www.mediaaccess.org/

* Public Knowledge Disappointed by FCC's Removal of Open Network=20
Requirements for DSL Providers
=93Public Knowledge is disappointed that the Federal Communications=20
Commission did not take all the necessary steps to ensure that broadband=20
networks remain open as service providers continue to be deregulated,=94 PK=
=20
Legal Director Mike Godwin said. =93We respect the leadership of Commission=
er=20
Copps and others in attempting to promote the principle of open networks in=
=20
the Commission=92s policy statement today, but we also believe consumers an=
d=20
the market would have benefited if the FCC had included an openness=20
requirement in the order itself,=94 Godwin said. Public Knowledge has=20
developed =93Principles of an Open Broadband Future=94 which highlights a=
=20
fundamental point that communications networks should be open and=20
accessible to consumers, application developers, and information service=20
providers and to other networks, without restrictions or degradation,=20
except to the extent required for law-enforcement or for network-management=
=20
purposes. You can find Public Knowledge=92s Principles for an Open Broadban=
d=20
Future here:=20
http://www.publicknowledge.org/content/papers/open-broadband-future More at=
=20
the URL below...
http://www.publicknowledge.org/pressroom/pressrelease.2005-08-05.4588805092

* BellSouth Comments on FCC Efforts to Spur High Speed Internet Access for=
=20
All Consumers
"Chairman Martin should be widely applauded for pushing to completion these=
=20
sweeping changes that will allow BellSouth to move higher-speed products=20
and services from the lab to the hands of American consumers in the very=20
near future. The chairman's leadership has led to an order that is=20
comprehensive and will result in greater innovation that will benefit every=
=20
broadband consumer. It must be noted that this consensus was developed with=
=20
commendable speed, a speed that is appropriate and necessary given the=20
importance of rapid technology changes in today's marketplace. The=20
transition periods that have been agreed to are workable. We look forward=
=20
to reviewing the words of the final order and implementing the order=20
quickly, so that consumers will be served by exciting new offerings in the=
=20
very near future, including new and more efficient services to our=20
wholesale customers."

* CompTel Comments on FCC Wireline Broadband Order
"Chairman Martin has demonstrated considerable skill and diplomacy in=20
crafting a bipartisan consensus in this order. According to the FCC,=20
today's action has no impact on CompTel's carrier members. CompTel=20
appreciates in particular that the final order will include measures to=20
ensure continued competitive access to facilities and provides a transition=
=20
period for ISP access and USF funding. The Chairman and his Democratic=20
colleagues worked hard to address issues of concern to CompTel members.=20
While we look forward to working with Chairman Martin and the Commission to=
=20
ensure the intent of this order is fulfilled, CompTel remains concerned=20
that the regulatory classification decisions in this order will ultimately=
=20
frustrate the Commission's stated goals and result in less innovation,=20
higher prices, and fewer jobs for Americans. We look forward to release of=
=20
the FCC's order, and we will have further comment when we can evaluate the=
=20
full text."
http://www.comptelascent.org/news/recent-news/080505.html

* Comments of Kyle McSlarrow, NCTA President & CEO Regarding FCC Order to=
=20
Classify DSL as an Information Service
=93We applaud Chairman Martin for making broadband deployment a national=20
priority, and support today=92s FCC decision to promote deregulatory polici=
es=20
that treat like services alike. We invite the telephone companies to take a=
=20
similar approach to regulation of video services and drop their=20
self-serving demands for special treatment by the government when entering=
=20
the video marketplace. A competitive marketplace with a level regulatory=20
playing field for all services, regardless of technology, is one that all=
=20
industries should be prepared to compete in.=94
http://www.ncta.com/press/press.cfm?PRid=3D617&showArticles=3Dok

* NTCA Hails FCC=92s Flexible Regulatory Framework for Rural ILEC Broadband=
=20
Services
The National Telecommunications Cooperative Association (NTCA) today=20
praised the Federal Communications Commission (FCC) for establishing a=20
flexible regulatory framework for rural telephone companies that operate=20
under rate of return (RoR) regulation. The commission=92s move, part of a=
=20
larger proceeding on the appropriate framework for broadband access to the=
=20
Internet over wireline facilities, ensures rural broadband providers will=
=20
be able to continue to fully recover their costs of providing broadband=20
services, specifically digital subscriber line services (DSL), under RoR=20
regulation. The FCC=92s decision allow rural incumbent local exchange=20
carriers (ILECS) that operate under RoR the option of offering broadband=20
services through the use of National Exchange Carrier Association (NECA)=20
tariffs and allows those carriers to participate in NECA=92s revenue=20
pools. RoR regulation enables rural ILECs to obtain the capital necessary=
=20
to build, operate and maintain telecommunications facilities. The=20
combination of RoR regulation and the NECA pooling structure provides rural=
=20
ILECs the assurance that they will recover their substantial investment in=
=20
the network infrastructure that is essential to providing advanced,=20
reliable telecommunications services to rural consumers. NTCA had expressed=
=20
concern that the commission actions in this proceeding might negatively=20
impact the in the stability of the universal service fund (USF). However,=
=20
the commission=92s firm commitment to do =93whatever is necessary=94 to ens=
ure=20
the stability of the fund - including the possible expansion of the base of=
=20
USF contributors - is viewed as a positive development for rural=20
ILECs. NTCA is pleased with the FCC=92s commitment to policies and practic=
es=20
that have promoted broadband deployment in rural areas. More at the URL=20
below...
http://www.ntca.org/ka/ka-2.cfm?folder_id=3D522

* TIA Applauds FCC Decision to Classify Wireline Broadband Services as=20
Information Services
"The Telecommunications Industry Association has long supported the=20
principle that all providers in the very competitive broadband services=20
market should operate in the same minimally regulated environment," stated=
=20
TIA President Matthew J. Flanigan. "Today's historic decision to classify=
=20
wireline broadband services as information services on the heels of the=20
Supreme Court upholding the FCC's similar classification of cable modem=20
services, will have an immediate, significant and lasting impact on=20
investment and innovation in information and communications networks. With=
=20
Brand X decided only in June, we thank the commission and the FCC staff for=
=20
working tirelessly to produce this very important decision in such a=20
remarkably short time. TIA also commits to continue working with the=20
commission as it crafts the new policy framework that will apply in a=20
broadband world."
http://www.tiaonline.org/media/press_releases/index.cfm?parelease=3D05-52

* USTelecom Applauds FCC Move to Market-Based Competition for Broadband=20
Providers
=93The Commission=92s vote today is the right move to bring consumers more=
=20
choice for high-speed Internet service, speed broadband deployment and spur=
=20
investment. After waiting several years for the courts to act, we=20
appreciate Chairman Martin=92s efforts to bring the rules for DSL service i=
n=20
line quickly with the rules for cable modem service. In crafting these new=
=20
rules, the Commission weighed many important issues that affect all aspects=
=20
of the communications business. We applaud the Commission for taking a=20
flexible approach to establish workable rules for all providers. In=20
addition, ensuring a sustainable universal service system is a high=20
priority for USTelecom members and we will work closely with the Commission=
=20
over the next several months to successfully achieve this critical objectiv=
e.=94
http://www.ustelecom.org/news_releases.php?urh=3Dhome.news.nr2005_0805
--------------------------------------------------------------

Benton's Communications-related Headlines For Friday August 5, 2005

The FCC open meeting today (9:30 eastern) will be available on the web at
http://www.fcc.gov/realaudio/
For upcoming media policy events, see http://www.benton.org/calendar.htm

AT THE FCC
FCC Noms Still No-Show
Debate Still Brewing Over FCC Broadband Proposal
Public Disclosure of Broadcast License Transfers
FCC's E/I Bug Lands
NAB Petitions FCC to Deny XM's Application to Acquire WCS

BROADCASTING
In Television Today, The Studio Audience Can't Just Sit There
Springer to Buy Broadcaster ProSieben For $3.01 Billion

QUICKLY -- CPB Board of Directors Meeting; Measuring the Blogosphere;
Darknets Rising to Expand File Sharing; Iraqis Connect to Cellular Age; If
We Buy it, it Will Come

AT THE FCC

FCC NOMS STILL NO-SHOW
If everyone in Washington knows that President Bush will nominate telecom
policy adviser Richard Russell and Tennessee utility commissioner Deborah
Taylor for two open FCC seats, why hasn't he actually done it? One theory
says the Administration is waiting to make an announcement when the Press
will be a bit more distracted -- why give reporters the month of August to
dig up any dirt on these people. Another, perhaps more likely theory, is
that the Administration is still deciding who to nominate for the seat of
Commissioner Copps whose term has expired. Copps has bipartisan support on
the Hill, but his outspoken views on media ownership and other issues may
make him to unpalatable for President Bush.
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
http://www.broadcastingcable.com/article/CA632463?display=Breaking+News&...
(free access for Benton's Headlines subscribers)
* Russell Didn't Torpedo Comstock's Nomination, Committee Says
Speaking of theory #1, the Senate Commerce Committee denied rumors that
potential FCC nominee Richard Russell argued against Earl Comstock's
nomination to the post, upsetting Chairman Ted Stevens (R-Alaska) when
Russell emerged as a candidate, a spokeswoman said. CompTel Pres. Earl
Comstock, backed by Sen Stevens for an FCC seat, withdrew from
consideration in April after difficulties arose concerning his nanny's
employment status. CommDaily reports that the nominations of White House
aide Richard Russell and Tennessee utility commissioner Deborah Taylor are
expected in a week or two -- after paperwork and vetting are completed.
Russell may face some opposition from competitive local phone companies
because he was one of the officials who argued against appealing the
Triennial Review Order.
[SOURCE: Communications Daily, AUTHOR: Anne Veigle]
(Not available online)

DEBATE STILL BREWING OVER FCC BROADBAND PROPOSAL
FCC Chairman Kevin Martin is proposing to reclassify broadband delivered
over digital subscriber lines from a heavily regulated "telecommunications"
offering to a lightly regulated "information service." The reclassification
push was prompted by a recent U.S. Supreme Court decision in a case that
held that broadband via cable modems should be regulated as an information
service. Chairman Martin appears to be seeking parity between telephone-
and cable-delivered broadband. But controversy has erupted because
reclassifying DSL means that phone companies providing the service no
longer would have to contribute to the Universal Service Fund. Reducing
contributions to that fund could draw fire from Capitol Hill. Meanwhile,
FCC Commissioner Michael Copps is seeking to modify the item by adding
"network neutrality" provisions that would require DSL providers not to
block or degrade competing services carried over their pipes. Several major
companies, including Amazon.com, eBay, Google, Microsoft and Yahoo, are
lobbying for neutrality as well.
[SOURCE: Technology Daily, AUTHOR: David Hatch]
http://www.njtelecomupdate.com/lenya/telco/live/tb-UYOF1123186104210.html

PUBLIC DISCLOSURE OF BROADCAST LICENSE TRANSFERS
The Campaign Legal Center joined the Institute of Public Representation,
the Office of Communication of the United Church of Christ, the National
Hispanic Media Coalition, Media Access Project, the Benton Foundation,
Chicago Media Action, and Free Press in filing comments calling on the
Federal Communications Commission to strengthen the rules governing the
public notice station owners must give when they apply to transfer their
broadcast station license. The comments recommend that the FCC create a
specific website where listeners and viewers can access information about
proposed station sales, and submit comments or objections. The groups urged
the FCC to ensure that the rules maximize public participation in the
broadcast licensing process.
[SOURCE: Campaign Legal Center]
http://www.campaignlegalcenter.org/FCC-199.html
Full text of comments: http://www.campaignlegalcenter.org/attachments/1419.pdf

FCC'S E/I BUG LANDS
The Office of Management and Budget has approved the FCC's plan to require
television broadcasters, commercial and noncommercial alike, to display an
on-screen "E/I" (educational/informational) bug throughout the entirety of
an FCC-friendly kids show, if they want to get credit toward their
FCC-mandated three-hour weekly minimum of educational children's
programming. The FCC adopted the new on-screen obligation as part of its
larger kids rule rewrite last November, including making noncoms have to ID
their educational kids shows. But, because the bug requirement is
considered an information collection obligation, it first had to be
approved by OMB per the Paperwork Reduction Act.
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
http://www.broadcastingcable.com/article/CA632472?display=Breaking+News&...
(free access for Benton's Headlines subscribers)

NAB PETITIONS FCC TO DENY XM'S APPLICATION TO ACQUIRE WCS
Stop! In the name of localism, before you cost us money. Think it over
(FCC). Think it over (FCC). Satellite radio provider XM wants to buy more
radio spectrum enabling the company to expand into multimedia subscription
services, such as video. But the National Association of Broadcasters would
like the FCC to block the deal -- find out why at the URL below.
[SOURCE: National Association of Broadcasters]
http://www.nab.org/newsroom/pressrel/Filings/XMWCSPetition8305.pdf

BROADCASTING

IN TELEVISION TODAY, THE STUDIO AUDIENCE CAN'T JUST SIT THERE
More on the state of shill-o-vision. From daytime to prime time, television
is asking studio audiences to play a bigger part in selling programs to
viewers. Just sitting there laughing and heeding flashing "Applause" signs
is no longer enough. Nor is having an engaging host -- partly because there
are an awful lot of engaging hosts out there. Rob Dauber, co-executive
producer of Martha Stewart's new daytime "how-to" show, sees this new
emphasis on the audience as an extension of popular reality shows. Viewers
like to see ordinary folks acting spontaneously. "Seeing someone like you
on a show makes you want to watch," says Susan Lyne, chief executive of
Martha Stewart Living Omnimedia. "On a subliminal level, it suggests the
show is for you."
[SOURCE: Wall Street Journal, AUTHOR: Brooks Barnes brooks.barnes( at )wsj.com]
http://online.wsj.com/article/0,,SB112319944041705585,00.html?mod=todays...
(requires subscription)

SPRINGER TO BUY BROADCASTER PROSIEBEN FOR $3.01 BILLION
Newspaper giant Axel Springer AG said Friday it will buy broadcaster
ProSiebenSat.1 Media AG from a U.S. investor group for $3.01 billion. The
deal unites Germany's leading newspaper and television companies, and would
reshape Europe's largest media market. The deal will likely face intense
regulatory scrutiny and political resistance in Germany. Springer, a
staunchly conservative publisher based in Berlin, is widely considered
Germany's most partisan media outlet and the prospect that it could extend
its reach to television has created disquiet in some quarters. Despite the
likely political opposition to marrying the two companies, regulators will
likely approve the deal because German antitrust law places few controls on
cross-sector ownership in the media.
[SOURCE: Wall Street Journal, AUTHOR: Matthew Karnitschnig
matthew.karnitschnig( at )wsj.com and Jason Singer jason.singer( at )wsj.com]
http://online.wsj.com/article/0,,SB112317585704805142,00.html?mod=todays...
(requires subscription)

QUICKLY

CPB BOARD OF DIRECTORS MEETING
The CPB Board of Directors will meet telephonically on Tuesday, August 9,
2005, 2:30 - 3:00 pm ET. The subject of the meeting is the Next Generation
Interconnection System for the public television system. The public may
attend and listen to this meeting in the Blair-Killian Board Room,
Corporation for Public Broadcasting, 401 Ninth Street, NW, Washington, D.C.
to the extent that space and occupancy regulations permit, unless otherwise
specified.
[SOURCE: Corporation for Public Broadcasting]
http://www.cpb.org/pressroom/release.php?prn=479
And just a reminder... Free Press and a nine other groups have asked for
increased openness and transparency in the way the CPB board operates and
conducts its meetings. Find out more at the URL below.
http://www.freepress.net/press/release.php?id=84

MEASURING THE BLOGOSPHERE
Earlier this week, Technorati, a Web site that indexes blogs, released its
semiannual "State of the Blogosphere" report. It records a steady, and
astonishing, growth. Nearly 80,000 new blogs are created every day, and
there are some 14.2 million in existence already, 55 percent of which
remain active. Some 900,000 new blog postings are added every day - a
steady increase marked by extraordinary spikes in new postings after
incidents like the London bombing. The blogosphere - that is, the virtual
realm of blogdom as a whole - doubles in size every five and a half months.
If the blogosphere continues to expand at this rate, every person who has
Internet access will be a blogger before long, if not an actual reader of
blogs. ("The point at issue is not whether Maine and Texas may now talk to
one another, but rather whether they have anything significant to say.")
[SOURCE: New York Times, AUTHOR: Editorial Staff]
http://www.nytimes.com/2005/08/05/opinion/05fri4.html
(requires registration)

DARKNETS RISING TO EXPAND FILE SHARING
Fresh from its victory in the Supreme Court Grokster case, Hollywood faces
a new Internet threat -- the rise of ``darknets,'' or private, encrypted
networks that allow the anonymous exchange of music, movies and other
digital files. The entertainment industry has dismissed these hidden
networks as a risk because they lack the massive reach of a file-swapping
service like Kazaa, which has been downloaded 378 million times and enables
the exchange of billions of songs, movies and software. But a new search
technique, unveiled at a hacker's convention in Las Vegas last week, could
dramatically expand the reach of these darknets beyond small groups of
trusted friends to potentially millions of people.
[SOURCE: San Jose Mercury News, AUTHOR: Dawn C. Chmielewski]
http://www.mercurynews.com/mld/mercurynews/business/technology/12309492.htm

OUT OF NECESSITY AND IN STYLE, IRAQIS CONNECT TO CELLULAR AGE
Banned during Saddam Hussein's reign and introduced only last year,
cellphones are an obsession in this country. Iraqis give them nicknames and
spend inordinate amounts of money on the latest models, accessories and
ring tones. Cellphones have become an indispensable part of everyday life,
crucial for families negotiating commutes to school and work amid bombings
and bloodshed. They also have a status function. In Iraq, they are a
fashion symbol nonpareil.
[SOURCE: Los Angeles Times, AUTHOR: Louise Roug]
http://www.latimes.com/news/printedition/asection/la-fg-cellphones5aug05...
(requires registration)

IF WE BUY IT, IT WILL COME
[Commentary] Sometimes the only way to find out if a technology works is to
try it. And the only way to see if it is profitable is to try to sell it.
Using file-sharing software, you can now download high definition
television clips to your computer. Interested?
[SOURCE: Los Angeles Times, AUTHOR: Editorial Staff]
http://www.latimes.com/news/printedition/opinion/la-ed-cuban5aug05,1,342...
(requires registration)
--------------------------------------------------------------
...and we are outta here. Many thanks to The Supremes and Henry David
Thoreau helping out with backup vocals today. Have a great, safe, summer
weekend (except, of course, our friends in the Southern Hemisphere).
--------------------------------------------------------------
Communications-related Headlines is a free online news summary service
provided by the Benton Foundation (www.benton.org). Posted Monday through
Friday, this service provides updates on important industry developments,
policy issues, and other related news events. While the summaries are
factually accurate, their often informal tone does not always represent the
tone of the original articles. Headlines are compiled by Kevin Taglang
(headlines( at )benton.org) -- we welcome your comments.
--------------------------------------------------------------

Benton's Communications-related Headlines For Thursday August 4, 2005

Today's FCC meeting will NOT happen today -- tune in tomorrow instead. See
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-260401A1.doc for the
brief announcement on the schedule change. Why the change? See "FCC May Let
Phone Companies Off DSL Hook" below.

For upcoming media policy events, see http://www.benton.org/calendar.htm

TELECOM
FCC May Let Phone Companies Off DSL Hook
Feds Approve Sprint-Nextel Merger
'Scuse me, I have to Answer my LeapPhone
Calling All Luddites

OWNERSHIP
Detroit Newspapers Change Ownership
Senate Panel To Examine Cable Competition
Some Predict Bad News for Big Media
Russian TV takes Soviet-era turn
Gray TV To Stand Alone

QUICKLY -- City Officials Blast Ensign Bill; ABC Back in NAB; CBS Training
Program Taps Two; Cautious Response To Internet Governance Proposals;
Unprecedented Wiretapping Scheme for In-Flight Communications; DISCUS
Releases Ad Self-Reg Report; AOL unit settles with FTC; Senators Target
Hezbollah TV; LPFM Comment Period Extended; Job Opening: UNITY;

MORE COVERAGE OF SPRINT-NEXTEL

TELECOM

FCC MAY LET PHONE COMPANIES OFF DSL HOOK
Members of the Federal Communications Commission worked yesterday to try to
reach an agreement to free telephone companies from having to lease access
to their high-speed lines to independent Internet service providers.
Sources close to the talks said the commission postponed today's open
meeting until Friday to try to complete negotiations. Such an agreement
would effectively extend to telephone companies the right won by cable
companies under the Supreme Court's "Brand X" decision in June to bar rival
Internet providers from their networks. Among the issues on the table are
whether to continue the old rules of guaranteed access and regulated prices
for some period, giving ISPs such as EarthLink and America Online time to
adjust. Others include guaranteeing "net neutrality" so that the regional
phone companies could not bar access to any Web sites; ensuring law
enforcement's ability to wiretap Internet phone services; preserving
consumer privacy protections; and maintaining protections for people with
disabilities. Critics argue that ending the companies' "common carrier"
obligations to lease their lines at regulated rates will allow them to
raise prices they charge Earthlink and AOL and, in the worst case, to
refuse to lease lines at all. "Brand X stands for the proposition that a
cable monopoly can decide who can use its network at what price and on what
terms. To extend that principle to telephone networks would be compounding
an enormous policy mistake," said Gene Kimmelman, public policy director of
Consumers Union, the publisher of Consumer Reports magazine. "This form of
gatekeeper control either on cable or on telephone is synonymous with
inflated prices," he added. "We are going to see a mass exodus from the
market. It's going to be a two-player-dominated system."
[SOURCE: Washington Post, AUTHOR: Arshad Mohammed]
http://www.washingtonpost.com/wp-dyn/content/article/2005/08/03/AR200508...
(requires registration)
* Phone companies' DSL may be deregulated
http://www.usatoday.com/printedition/money/20050804/2b_fcc_04.art.htm
* FCC Eyes Long-Awaited DSL Item
http://www.njtelecomupdate.com/lenya/telco/live/tb-MGTD1123100782152.html

FEDS APPROVE SPRINT-NEXTEL MERGER
The Federal Communications Commission and the Department of Justice's
Antitrust Division on Wednesday approved the $35 billion merger of U.S.
cell phone operators Sprint and Nextel Communications. While reducing the
number of major U.S. operators from five to four, both agencies concluded
the merger will not diminish competition. "Carrier conduct will remain
sufficiently competitive to ensure that market performance will not be
impaired, and, given the expected benefits, the public interest will be
enhanced on balance," the FCC said in a statement. Consumer advocates
expressed concerns that mergers would negatively impact consumers because
there is less competition, and therefore less reason for carriers to
control their prices. That opinion was backed up earlier this year when
executives from landline phone operators SBC Communications and Verizon
Communications, which are also merging with competitors, could not rule out
eventual price hikes following a series of proposed telecom mergers during
testimony before a Energy and Commerce Committee. SBC plans to acquire AT&T
for $16 billion; Verizon is buying MCI for $6.7 billion.
* Text of FCC order
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-260394A5.doc
Statements from FCC Commissioners --
* Martin: "This action will ensure that consumers continue to receive the
benefits of wireless competition, such as reduced prices and increased
coverage. In addition, consumers can expect improved service quality and
more advanced services."
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-260394A1.doc
* Copps: "In less than a year mergers have reduced the number of national
wireless competitors by one third. Only last year consumers could choose
between six national carriers. There are now only four. While I am
sensitive to the arguments that six national competitors could not have
been forever sustained in the wireless market, I am also concerned about
what this substantial reduction in the number of competitors may mean for
wireless consumers. The FCC will have to take a hard look at whether we
have gone about as far as we can go. I believe we should have conditioned
approval of this merger on Sprint Nextel either meeting its 911 deadline,
or having a waiver or consent decree in place. We should have insisted
that Sprint Nextel immediately get itself on a path to full public safety
compliance. I am disappointed that we do not do more today to ensure
compliance with our public safety deadline."
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-260394A3.doc
* Adelstein: "I am very pleased that the companies have committed to
specific milestones in the deployment of services in the 2.5 GHz
band....providing a specific schedule of implementation milestones that
will ensure wireless broadband services will be deployed to at least 30
million Americans across a number of markets, both large and small. And,
just as important, they put their money where their mouth is by agreeing to
be subject to enforcement action in the event Sprint Nextel fails to meet
these commitments for reasons of circumstances within the company's
control. I also appreciate the company's efforts to address my concerns
about the financial health of the spin-off of the incumbent local telephone
operations. In a recent filing, the Chief Executive Officers of both
Sprint and Nextel indicated that the new local telephone company "will
receive an equitable debt and asset allocation at the time of its proposed
spin-off so that the company will be a financially secure, Fortune 500
company." This positive step will protect Sprint's wireline employees and
ensure millions of primarily rural wireline customers continue to see a
high level of service and investment in advanced services."
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-260394A4.doc
** See links to additional coverage at the end of this email. **

'SCUSE ME, I HAVE TO ANSWER MY LEAPPHONE
In the latest entry into what is quickly becoming a crowded market,
wireless company Enfora LP and educational toy maker LeapFrog Enterprises
are about to unveil a cellphone especially designed for kids. The new
phone, called TicTalk and aimed at kids ages 6 and up, joins a growing
lineup of competitors that includes Mattel, Hasbro, Firefly Mobile and Walt
Disney. The under-13 'tween segment may be among the last available
territories for cellphone companies to mine. An estimated 80% of adults age
18-65 already carry cellphones, according to market researcher Yankee
Group. And family plans, whereby several phones for various family members
are linked to one shared plan, are a popular option for teens. Family-plan
subscriptions for kids age 13-17 rose 38% to 6 million from 4.4 million
from 2004 to 2005, according to Yankee Group. Manufacturers say their
research indicates that cellphones are among the top items children are
clamoring for. The race to capture the 'tween set has popped up this year,
amid a longstanding debate about the propriety of giving kids their own
device. Some parents like the security of having their children always
reachable by cellphone, no matter where they go. But others hesitate for
fear of running up triple-digit phone bills -- and worries over whom
children may be talking to when they're unsupervised. Many
child-development experts say the research on children and cellphones is
scant but as with any new technology, boundaries and rules have to be set.
[SOURCE: Wall Street Journal, AUTHOR: Kim-Mai Cutler kim-mai.cutler( at )wsj.com]
http://online.wsj.com/article/0,,SB112311926397704641,00.html?mod=todays...
(requires subscription)
* Kiddie phones have parental controls
http://www.usatoday.com/printedition/money/20050804/b_baig04.art.htm
* Cellphones? Over There, Right Next to the Slurpees
When 7-Eleven started its own mobile phone service last year, stocking
handsets on the shelves near the beef jerky and burritos, it became one of
dozens of companies, many with no experience in the phone business, making
a new sideline of selling mobile communications. The emergence of these
companies, and the segmentation of the mass market, reflects the ease of
repackaging telecommunications services in the digital age.
http://www.nytimes.com/2005/08/04/technology/04cell.html?hp&ex=112321440...
(requires registration)
* 1 Landline + 1 Cellphone = 1 Handset
New device helps you make best use of your landline-cellphone combination
at home.
http://tech2.nytimes.com/2005/08/04/technology/circuits/04pogue.html
(requires registration)

CALLING ALL LUDDITES
[Commentary] The world is moving to an Internet-based platform for
commerce, education, innovation and entertainment. Wealth and productivity
will go to those countries or companies that get more of their innovators,
educators, students, workers and suppliers connected to this platform via
computers, phones and PDA's. A new generation of politicians is waking up
to this issue. For instance, Andrew Rasiej is running in New York City's
Democratic primary for public advocate on a platform calling for wireless
(Wi-Fi) and cellphone Internet access from every home, business and school
in the city. If, God forbid, a London-like attack happens in a New York
subway, don't trying calling 911. Your phone won't work down there. No
wireless infrastructure. In U.S. politics, the party that most quickly
absorbs the latest technology often dominates. FDR dominated radio and the
fireside chat; JFK, televised debates; Republicans, direct mail and then
talk radio, and now Karl Rove's networked voter databases. The
technological model coming next -- which Howard Dean accidentally uncovered
but never fully developed -- will revolve around the power of networks and
blogging. The public official or candidate will no longer just be the one
who talks to the many or tries to listen to the many. Rather, he or she
will be a hub of connectivity for the many to work with the many - creating
networks of public advocates to identify and solve problems and get behind
politicians who get it. "One elected official by himself can't solve the
problems of eight million people," Mr. Rasiej argued, "but eight million
people networked together can solve one city's problems. They can spot and
offer solutions better and faster than any bureaucrat. ... The party that
stakes out this new frontier will be the majority party in the 21st
century. And the Democrats better understand something - their base right
now is the most disconnected from the network."
[SOURCE: New York Times 8/3, AUTHOR: Thomas Friedman]
http://www.nytimes.com/2005/08/03/opinion/03friedman.html
(requires registration)

OWNERSHIP

DETROIT NEWSPAPERS CHANGE OWNERSHIP
Time to revise your media ownership map. In a huge shake-up of the Detroit
newspaper market, Gannett has agreed to sell the Detroit News to closely
held MediaNews Group, and to acquire the larger-circulation Detroit Free
Press from Knight Ridder. At the same time, Gannett swapped assets with
Knight Ridder, giving it the Idaho Statesman in Boise and the Olympian and
the Bellingham Herald in Washington state. Gannett, in exchange, got the
Tallahassee Democrat, in Florida.
The move gives Gannett the more successful of the two newspapers in the
Detroit metropolitan area and removes Knight Ridder from a troubled (labor
and declining circulation) market. With the purchase of the Free Press,
Gannett is raising its bet on Detroit's long-term viability as a newspaper
market. In November it bought HomeTown Communications Network, a community
publishing company that includes the Daily Press & Argus in nearby
Livingston County and nondaily groups in other suburban areas near Detroit.
MediaNews, owned by William Dean Singleton, will receive the weaker Detroit
News. The terms of the new partnership will give the News some competitive
advantages, including the right to publish in the morning and the exclusive
right to publish a paper on Saturdays. Until now, the paper has published
in the afternoon and the two papers have published combined editions on
Saturdays and Sundays. As part of a joint operating agreement formed in
1989, called Detroit Newspaper Agency, the Detroit News and the Detroit
Free Press have shared production and advertising expenses and split
profits 50-50. Editorial operations remained separate. The old partnership
will be replaced by a new one called Detroit Newspaper Partnership LP. The
terms will give Gannett a larger share of the profit.
[SOURCE: Wall Street Journal, AUTHOR: Joe Hagan joe.hagan( at )wsj.com and Janet
Adamy janet.adamy( at )wsj.com ]
http://online.wsj.com/article/0,,SB112310244544704214,00.html?mod=todays...
(requires subscription)
* 2 Huge Publishing Chains Swap Newspapers
http://www.nytimes.com/2005/08/04/business/media/04paper.html
(requires registration)
* Gannett Buys Top Detroit Newspaper
http://www.washingtonpost.com/wp-dyn/content/article/2005/08/03/AR200508...
* Gannett to acquire Detroit's 'Free Press,'sell 'News'
http://www.usatoday.com/printedition/money/20050804/detroit04.art.htm

SENATE PANEL TO EXAMINE CABLE COMPETITION
Consolidation and competition in the cable industry will be scrutinized at
a hearing this fall before the Senate Judiciary Antitrust Subcommittee,
with executives from Time Warner and a major telephone company among likely
witnesses, sources said. The hearing, to be held amidst the backdrop of
legislative efforts to revamp the nation's telecommunications law, will
tackle a range of issues. The panel plans to take on rising cable rates,
obstacles faced by independent channels, and competitors' access to cable
programming of dominant firms. Members specifically will examine the
so-called terrestrial loophole, an arcane law that enables cable operators
delivering content through wires to withhold it from satellite competitors.
The hearing also will explore the pending acquisition by Time Warner Cable
and Comcast of Adelphia Communications.
[SOURCE: Technology Daily, AUTHOR: David Hatch]
http://www.njtelecomupdate.com/lenya/telco/live/tb-DQFU1123100483924.html

SOME PREDICT BAD NEWS FOR BIG MEDIA
The U.S. box office is sagging. DVD sales gains are slowing. Advertising
revenue at broadcast television networks is slipping as ratings drop. And
the growing popularity of digital video recorders has advertising and
television executives worried. The variety of concerns along with questions
of how much growth potential remains for the industry are reflected in
drooping stock prices this year for media giants including Time Warner,
Viacom, Walt Disney Co. and News Corp.
[SOURCE: Newsday, AUTHOR: Harry Berkowitz]
http://www.newsday.com/business/printedition/ny-bzmedi034368639aug03,0,5...

RUSSIAN TV TAKES SOVIET-ERA TURN
Zvezda (star), a newly-launched state-run TV network in Russia, is one of
several government-funded initiatives ostensibly aimed at correcting what
the Kremlin perceives is a dearth of national pride and identification with
the state -- especially among Russia's rudderless youth. "Until now, there
is not a single TV channel oriented on the ideas of the Fatherland where
priority is given to all things Russian," producer Ivan Kononov says. "You
may call it propaganda, but we need to stop this tendency to beat ourselves
up, stop selling out our country." Zvezda, which kicked off in March and
currently reaches about 50 million Russian households, so far spends most
of its 24-hour cycle showing Soviet films, plus a few military
documentaries and interviews with notable Russians. Kononov says
programming will soon expand to include talk shows and open forums for
young people to discuss their "burning questions," particularly the
widespread aversion to military service. Last month the Kremlin signed off
on an ambitious five-year program, involving 22 government ministries, to
buck up Russia's image at home and abroad as well as unspecified, but
potentially ominous, efforts to "resist attempts to discredit and devalue
patriotic ideas in the media, literature, and the arts." Critics say the
Kremlin's patriotism project is little more than an expensive PR offensive
to paper over Russia's very real problems, particularly the state of the
military. Zvezda, funded mainly by the Defense Ministry, is an attempt to
stem the tide of draft evasion - only 11 percent of eligible young men were
conscripted last year - by presenting a rosy view of Army life, they say.
"This is just a bureaucratic approach that smells of Soviet methods," says
Vitaly Shlykov, a former Soviet official. "They have failed in all attempts
to actually reform the Army, so now they've decided to teach patriotism
instead."
[SOURCE: The Christian Science Monitor, AUTHOR: Fred Weir]
http://www.csmonitor.com/2005/0804/p06s01-woeu.html

GRAY TV TO STAND ALONE
Gray Television, which owns 31 TV stations including the largest contingent
of CBS affiliates at 16, will become a stand-alone broadcaster when it
spins off its newspaper and wireless businesses to shareholders, forming a
new company, Triple Crown Media.
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
http://www.broadcastingcable.com/article/CA631953?display=Breaking+News&...
(free access for Benton's Headlines subscribers)

QUICKLY

CITY OFFICIALS BLAST ENSIGN BILL
Last week, Sen. John Ensign (R-NV) unveiled sweeping legislation (S. 1504)
that would block cities from forcing phone companies to obtain video
franchises -- a regulatory process that cable companies have followed in
thousands of communities. Although phone companies would not face buildout
requirements, they would need to contribute up to 5% of video revenue as
compensation to use local rights of way. But local regulators are
denouncing the bill for eliminating their authority to supervise companies
that want to dig up streets to lay wires that will offer the consumers the
latest in voice, video and data services.
[SOURCE: Multichannel News, AUTHOR: Ted Hearn]
http://www.multichannel.com/article/CA631845.html?display=Breaking+News
(requires subscription)

DISNEY/ABC AGREES TO REJOIN NAB
After a two-year hiatus, Disney/ABC today announced its intention to rejoin
the National Association of Broadcasters, the industry trade group that
represents free, over-the-air broadcasters on Capitol Hill and at the FCC.
Preston Padden, Executive VP/worldwide government relations, for The Walt
Disney Company will immediately get a seat on the NAB board.
[SOURCE: National Association of Broadcasters]
http://www.nab.org/newsroom/pressrel/Releases/080305_ABCRelease.htm
* Mouse Back in NAB House
ABC was left of "Big Four" networks to leave NAB over broadcast station
ownership dispute. The central issue in the dispute was the division
between the "Big Four" nets and their affiliates over whether or not to
raise the 35% ownership cap on a group owner's national audience reach. The
NAB had been lobbying against raising the cap, with stations arguing that
allowing the networks to own more stations would give them undue leverage
in affiliate contract negotiations. The networks countered that they need
to bulk up to survive, pointing out that some of the non-network groups
contain many more stations, simply not in as large markets. The issue came
to a boil for ABC in June 2003, when the NAB TV board voted to endorse
congressional attempts to restore the 35% cap, which the FCC raised to 45%
in a controversial vote.
http://www.broadcastingcable.com/article/CA632183?display=Breaking+News&...
(free access for Benton's Headlines subscribers)

CBS TRAINING PROGRAM TAPS TWO
CBS named the first two participants in a training program for journalists
of color. James Black will report for WBNS Columbus, Ohio, and Alturo
Rhymes will work for CBS Newspath, the network's affiliate news service in
New York. The program was started to train producers and correspondents for
jobs at CBS News, CBS affiliates, O&O stations. The journalists, who are
required to have at least two years of newsroom experience before the
program, spend two years in CBS affiliate newsrooms or at CBS Newspath. The
program's goal is to eventually place them at CBS News.
[SOURCE: Broadcasting&Cable, AUTHOR: Joel Meyer]
http://www.broadcastingcable.com/article/CA632015?display=Breaking+News&...
(free access for Benton's Headlines subscribers)

CDT URGES CAUTIOUS RESPONSE TO INTERNET GOVERNANCE PROPOSALS
Putting more power over Internet "governance" in the hands of
multi-governmental bureaucracies could undercut the openness and
accessibility of the Internet, the Center for Democracy & Technology said
in public comments. Responding to several new Internet governance models
proposed in a report commissioned by the United Nations, CDT urged the
preservation of the largely non-governmental framework currently in place
for overseeing key elements of the Internet's infrastructure. CDT filed its
initial comments to the State Department and will submit a revised version
of the document to the UN's World Summit on the Information Society (WSIS)
Secretariat later this month.
CDT Comments on WGIG Internet Governance Report:
http://www.cdt.org/dns/icann/20050801wgig-wsis.pdf
All Comments to State Department:
http://www.state.gov/e/eb/cip/wsis2005/c15408.htm

CDT AND EFF OPPOSE UNPRECEDENTED WIRETAPPING SCHEME FOR IN-FLIGHT
COMMUNICATIONS
The Center for Democracy & Technology and the Electronic Frontier
Foundation are opposing a new Justice Department scheme to require that
information about aircraft passengers' cell phone and Internet
communications be constantly recorded. CDT and EFF, which filed comments
with the Federal Communications Commission, don't oppose law enforcers'
ability to intercept such communications, but are deeply concerned that the
proposal raises constitutional concerns and could impose burdensome design
mandates on emerging technology.
CDT-EFF Comments filed with the FCC:
http://www.cdt.org/digi_tele/20050803cdt-eff.pdf

DISCUS RELEASES AD SELF-REG REPORT
The Distilled Spirits Council (DISCUS) Thursday released its second
semi-annual report on the actions of its Code Review Board, saying all of
the member companies cited for code violation had taken actions to modify
their advertisements. According to the DISCUS report, the board, a
self-regulatory body that reviews complaints about distilled spirits ads,
recommended remedial action in 16 of 17 complaints, with 14 of the 16
advertisers agreeing to modify their campaigns, including all five DISCUS
members and 9 of 11 nonmembers.
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
http://www.broadcastingcable.com/article/CA632205?display=Breaking+News&...
(free access for Benton's Headlines subscribers)

ADVERTISING.COM SETTLES FTC ADWARE CHARGES
An America Online Inc. subsidiary will no longer bundle its anti-spyware
program with software that tracks consumers' online habits and force-feeds
them pop-up ads, the Federal Trade Commission said on Wednesday.
Advertising.com Inc. also agreed to regular check by the FTC in order to
settle a deceptive-advertising suit filed by the consumer-protection
agency. Advertising.com, also known as Teknosurf.com, promoted its SpyBlast
program as a way to protect users' computers from "hackers," the FTC
charged. But those who downloaded the product also installed a separate
program that monitored their online behavior and served them pop-up ads.
[SOURCE: Reuters]
http://today.reuters.com/news/newsArticle.aspx?type=technologyNews&story...

SENATORS TARGET HEZBOLLAH TV
A group of 51 senators is writing President Bush asking him to put the
Hezbollah-backed al-Manar Television on the U.S. Treasury's list of
Specially Designated Global Terrorism Organizations, which would allow the
government to go after its funding and partners. "Viewed via satellite
throughout the Muslim world, al-Manar promotes suicide attacks against
American and Israeli targets and encourages Iraqi insurgents to attack U.S.
troops," the bipartisan group of senators wrote in the letter.
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
http://www.broadcastingcable.com/article/CA631843?display=Breaking+News&...
(free access for Benton's Headlines subscribers)

CREATION OF LOW POWER RADIO SERVICE
The FCC has extended by two weeks the comment and reply comment deadlines
in its low power FM proceeding (MM Docket No. 99-25) to August 22, 2005 and
September 6, 2005, respectively
[SOURCE: Federal Communications Commission]
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DA-05-2253A1.doc

JOB OPENING: UNITY
UNITY is currently seeking applicants for the position of director of
communications and policy issues that will oversee the planning and the
execution of the communications strategies to meet the needs of the
organization's goals and objectives.
For further information about this position, please go to
http://unityjournalists.org/Training/ProfessionalOpps/policydir_opp.html
To apply, send a letter of interest, resume and three writing samples to
Anna Lopez at executive( at )unityjournalists.org.
Deadline: August 8, 2005.

MORE COVERAGE OF SPRINT-NEXTEL

FCC Approves Sprint/Nextel Merger Agreement
http://online.wsj.com/article/0,,SB112310162781604205,00.html?mod=todays...

Gov't Approves Sprint-Nextel Deal
http://www.washingtonpost.com/wp-dyn/content/article/2005/08/03/AR200508...

Sprint, Nextel $70 billion merger gets FCC's approval
http://www.usatoday.com/printedition/money/20050804/2b_nextel_04.art.htm
--------------------------------------------------------------
Communications-related Headlines is a free online news summary service
provided by the Benton Foundation (www.benton.org). Posted Monday through
Friday, this service provides updates on important industry developments,
policy issues, and other related news events. While the summaries are
factually accurate, their often informal tone does not always represent the
tone of the original articles. Headlines are compiled by Kevin Taglang
(headlines( at )benton.org) -- we welcome your comments.
--------------------------------------------------------------

Benton's Communications-related Headlines For Wednesday August 3, 2005

For upcoming media policy events, see http://www.benton.org/calendar.htm

AT THE FCC
FCC May Set Rules Allowing Bells Exclusive Access Over DSL Lines
Public Knowledge Asks FCC to Maintain Open Networks in DSL Order
Raising the FCC=92s 30% Limit on Cable TV Market Shares is Bad Policy
NCTA: Cable Regs Apply to IP Video
Auction of Low Power Television Construction Permits

LEGISLATION
CLECs, Municipalities and Cable Unhappy with Ensign Bill
National Video Disenfranchisement
Calculating Calamity
NTCA Lauds Senators for Kicking-Off Telecom Rewrite Debate
USTelecom Praises Senators for Putting Universal Service Reform on the Tab=
le
BellSouth Says Reform Of Universal Service Needed To Rescue Fund From=20
'Life Support'

KIDS
The Internet at School
Not Mr. Rogers=92 Neighborhood Anymore

QUICKLY -- Charter, Comcast Expand Simulcasting -- May Avoid Must-Carry;=20
Russia Bars ABC; Notes From The Telus Picket Line; Broadband Penetration=20
Surge by 2010; Looser Regulation For Smaller Cable TV Operators; Drug=20
Companies To Submit TV Ads to FDA

AT THE FCC

FCC MAY SET RULES ALLOWING BELLS EXCLUSIVE ACCESS OVER DSL LINES
The Federal Communications Commission will hold an open meeting tomorrow=20
and could change the rules regulating phone companies' Internet services=20
then making it more difficult for independent Internet providers to offer=
=20
high-speed service but offering an incentive for the Bells to build out=20
broadband networks. The change, which likely would take effect this fall,=
=20
would allow phone companies to kick competitors such as EarthLink Inc. and=
=20
America Online, a division of Time Warner Inc., off their DSL systems. If=
=20
independent Internet providers can't reach terms with phone or cable=20
companies, they could be forced to either focus on providing dial-up=20
Internet service or emerging technologies such as high-speed wireless=20
Internet. The commission must resolve several issues, including concerns=20
about how the change might impact the Universal Service Fund, which=20
subsidizes phone and Internet services in rural areas. DSL customers pay a=
=20
USF fee, unlike cable Internet users. FCC commissioners are also finishing=
=20
up a review of Sprint's $35 billion acquisition of Nextel Communications=20
and a vote could come as soon as today. Communications Daily reports that=
=20
Sprint has agreed to conditions to win FCC approval: 1) Four years after=20
the effective date of the merger order, the merged company would offer=20
service in the 2.5 GHz band to at
least 15 million Americans; 2) within six years, the merged company will=20
offer service in the 2.5 GHz band to at least 30 million Americans; and 3)=
=20
Sprint will spin off a new company that will provide local telephone=20
service to its current 8 million local customers. Last month commission=20
staff recommended approving the acquisition. The Justice Department also=20
must approve the deal.
[SOURCE: Wall Street Journal, AUTHOR: Amy Schatz Amy.Schatz( at )wsj.com]
http://online.wsj.com/article/0,,SB112302782272403253,00.html?mod=3Dtoda...
us_page_one
(requires subscription)
* FCC Vote on Sprint-Nextel Merger Expected This Week
[SOURCE: Communications Daily, AUTHOR: Susan Polyakova]
(Not available online)

PUBLIC KNOWLEDGE ASKS FCC TO MAINTAIN OPEN NETWORKS IN DSL ORDER
The Federal Communications Commission is working to follow up the Brand X=
=20
U.S. Supreme Court decision with an order that would substantially=20
deregulate DSL services. The item is now on circulation on the eighth=20
floor, and it is possible that it could be added to the agenda for this=20
week=92s meeting. The following statement should be attributed to Mike=20
Godwin, legal director for Public Knowledge: =93As the Commission considers=
=20
how to deregulate DSL services, we hope the Commissioners will bear in mind=
=20
the benefits to consumers of having open networks in terms of fostering=20
competition and innovation. Public Knowledge, of course, has its own set of=
=20
open broadband principles, including the principle that networks should be=
=20
open to the attachment of any equipment the user chooses, as long as it=20
does not harm the technical operation of the broadband network. We also=20
support the principle that communications networks should be open and=20
accessible to consumers, application developers, and information service=20
providers and to other networks, without restrictions or degradation,=20
except to the extent required for law-enforcement or for network-management=
=20
purposes. These are principles are in line with those of other=20
policymakers. Sen. John Ensign=92s recently introduced telecommunications=
=20
legislation, for example, also would guarantee consumer access to content=
=20
over broadband facilities. Similarly, Senate Antitrust Subcommittee=20
Chairman Mike DeWine and ranking member Sen. Herb Kohl also outlined in a=
=20
July 29 letter to the Justice Department and to the FCC a number of=20
pro-consumer, open-network policies to be considered in the context of the=
=20
SBC purchase of AT&T, and the Verizon purchase of MCI. The conditions=20
should be considered here as well. The Commission=92s actions will shape th=
e=20
broadband future for years to come. Thus, its deregulatory efforts should=
=20
be implemented in ways that favor the competition inherent in open and=20
accessible networks.=94
[SOURCE: Public Knowledge]
http://www.publicknowledge.org/pressroom/releases/pressrelease.2005-08-0...
850230458

RAISING THE FCC'S 30% LIMIT ON CABLE TV MARKET SHARES IS BAD POLICY
The Federal Communications Commission needs to hold firmly to its 30% limit=
=20
on market shares in the national cable TV market. That 30 % cap is based on=
=20
sound economic analysis and is the best protection against the harms that=
=20
more mergers or corporate tactics could impose if their market share is=20
increased into the 30 to 40% range or even higher. Those economic and=20
social harms would be large. In fact, monopoly power has already been=20
raising prices and profits to monopoly levels for three decades. And the=20
higher market shares that would result from raising the cap would have no=
=20
valid economic justifications. If the FCC can't reduce the market power, it=
=20
should at least try to prevent the concentration of more of it.
[SOURCE: Economic Policy Institute, AUTHOR: William G. Shepherd]
http://epi.org/workingpapers/wp272.pdf

NCTA: CABLE REGS APPLY TO IP VIDEO
Phone companies have no plans to offer video services that qualify for=20
exemptions from cable laws and regulations developed over decades by=20
Congress and regulators, the National Cable & Telecommunications=20
Association said in a long legal analysis filed with the Federal=20
Communications Commission late last week. NCTA said IP-video services are=
=20
effectively indistinguishable from what cable operators can and do provide;=
=20
thus, since cable operators need franchises for video, so do the Baby Bells.
[SOURCE: Multichannel News, AUTHOR: Ted Hearn]
http://www.multichannel.com/article/CA631740.html?display=3DBreaking+News
(requires subscription)

AUCTION OF LOW POWER TELEVISION CONSTRUCTION PERMITS
The Media Bureau and the Wireless Telecommunications Bureau of the Federal=
=20
Communications Commission provided an opportunity during a remedial period=
=20
(starting on June 24, 2005 and ending on July 8, 2005) for seventy-four=20
(74) applicants to provide new and corrected information to their=20
short-form applications (FCC Forms 175) to participate in the upcoming=20
auction of 113 construction permits for certain low power television=20
(LPTV), television translator and Class A television broadcast stations=20
(Auction No. 81) scheduled to begin on Wednesday, September 14,=20
2005. Applications accepted for filing will become qualified bidders upon=
=20
receipt of the required upfront payment due before 6:00 p.m. Eastern Time=
=20
(ET) on August 12, 2005. Applications found to be incomplete or deficient=
=20
will receive overnight correspondence indicating what information is=20
required to make the applications acceptable for filing. These applicants=
=20
may become qualified bidders only if they: (1) make the required upfront=20
payments before 6:00 p.m. ET on Friday, August 12, 2005; and (2) resubmit=
=20
their applications before 6:00 p.m. ET on Friday, August 12, 2005, having=
=20
corrected the deficiencies indicated.
[SOURCE: Federal Communications Commission]
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DA-05-2229A1.doc

LEGISLATION

CLECs, MUNICIPALITIES AND CABLE UNHAPPY WITH ENSIGN BILL
Competitive local phone companies (CLECs), cities and cable operators are=
=20
lining up against Sen Ensign's telecommunications reform legislation=20
introduced last month. Cable is concerned about the Ensign bill=92s=20
provisions on video franchising because they don't require buildout=20
obligations for new entrants and because the bill exempts video service=20
providers from providing leased or common carrier type access to their=20
video service and facilities. Municipalities also dislike the video=20
franchising provisions because they strip power from local governments.=20
CLECs are disappointed with the bill=92s lack of regulation on access to=20
phone networks, which it says could cripple emerging technologies such as=
=20
VoIP. The bill seems to be too controversial as written and its chances of=
=20
passage are dimmed by prospects of Senate Commerce Committee Chairman Ted=
=20
Stevens (R-Alaska) introducing his own bill in the Fall. Said Paul=20
Gallant, analyst with Stanford Washington Research Group, =93I think it=20
[Ensign bill] lays down a marker for industry sectors and other members of=
=20
Congress to react to, but I am skeptical that anything that broad could be=
=20
enacted this year or next.=94 Any telecom bill also has to address universa=
l=20
service fund (USF) reform, a feature not included in the Ensign bill but=20
which Sen Stevens has declared a priority, he said. =93Bills that fail in o=
ne=20
Congress can become the drivers of broader legislation in another, as when=
=20
various initiatives that had been bubbling for years came together and=20
eventually produced the =9196 Telecom Act,=94 said telecom analyst Blair Le=
vin.=20
He noted that the House is still working on its telecom update effort, so=
=20
the =93debate is just beginning, in our opinion.=94 That update effort, led=
by=20
House Commerce Committee Chairman Joe. Barton (R-TX), is expected to=20
address video franchising, VoIP and E-911 issues.
[SOURCE: Communications Daily, AUTHOR: Anne Veigle]
(Not available online)

NATIONAL VIDEO DISENFRANCHISEMENT
The Alliance for Community Media has started a campaign to protect the=20
interests of the operators of the more than 5,000 public, educational and=
=20
government (PEG) access channels in the country. Targeting Senate bills=20
1349 and 1504 and House bill 3146, ACM and PEG operators said in letters to=
=20
members of Congress that the bills are =93anticompetitive and technically=
=20
flawed and unworkable in the real world.=94 ACM criticized legislation=20
introduced by Sen Ensign bill because franchise fees are eliminated in the=
=20
bill and even collection of real costs of maintaining rights-of-way is=20
limited to 5% of gross revenue. That means that no fees will be available=
=20
to support PEG programming. In addition, funding will be eliminated for=20
public networks, including public safety communications, it added. The=20
=93simplest=94 solution for telecom entry into the video business is to=20
=93mirror=94 existing cable franchises in each locality, ACM said. It said =
the=20
bills could be fixed by: 1) Maintaining financial support for operating and=
=20
capital costs of PEG access; 2) Municipal use of channels should maintain=
=20
system proportionality with 2004 levels or 30 MHz; 3) Non-monetary payments=
=20
in franchise agreements, including public networks and other community=20
media infrastructure must be protected; and 4) Franchise fees, if limited=
=20
to 5%, must stand alone and not be tied to unrelated costs of the municipal=
ity.
[SOURCE: Communications Daily]
(Not available online)
For more info see http://www.alliancecm.org/

CALCULATING CALAMITY
[Commentary] Sen Ensign said in his floor statement that we should consider=
=20
the amount of GDP growth that will be generated in the next five years if=
=20
we update our telecommunications laws. He said that growth will be $634=20
billion dollars. Ensign then cited the 212,000 new jobs that would be=20
created by decimating telecom regulation. Those 212,000 new jobs at the=20
$634 billion dollar figure comes to roughly $3 million for each and every=
=20
one of those jobs. $600,000 per year for each of those jobs would seem to=
=20
guarantee they'll be mostly management positions. Those figures come=20
directly out of the United States Chamber of Commerce report released last=
=20
October and widely vamped throughout the country at seminars, conferences=
=20
and sympathetic web sites. Which goes to show if you say something often=20
enough it eventually becomes true and it=92s even more true when you can ge=
t=20
a Senator to say it on Capitol Hill. Meanwhile Houston stands to lose=20
around $30 million a year in franchise fees. St. Louis could lose $20=20
million. Aurora will lose about $1.2 million. Tumwater will lose about=20
$147,000 and Cedar Hill will be out $118,000. So the 212,000 new jobs that=
=20
will be created could easily be offset by cities and counties having to lay=
=20
off people in order to make up for the lost franchise fees. It would only=
=20
take an average of eleven people per city and county being laid off to=20
destroy Ensign=92s grand plans of job growth through corporate subsidy.=20
Losing eleven staff in Tumwater might seem like a lot but you=92re going to=
=20
have to really swing the axe in places like Houston to make up that $30=20
million shortfall.
[SOURCE: Riedel Communications, AUTHOR: Bunnie Riedel]
http://www.riedelcommunications.blogspot.com/

NCTA LAUDS SENATORS FOR KICKING-OFF TELECOM REWRITE DEBATE
In response to the introduction of legislation (S. 1583) by Sens. Gordon=20
Smith (R-Ore.), Byron Dorgan (D-N.D.), and Mark Pryor (D- Ark.): =93NTCA=20
supports Senators Smith, Dorgan and Pryor and their efforts to bring=20
universal service to the forefront of the Communications Act rewrite=20
debate. This is an enormous step forward in the critical process of=20
updating our nation=92s telecommunications laws to reflect today=92s indust=
ry=20
realities. NTCA applauds the senators for recognizing the need to effect=20
changes to the cost-recovery mechanism of universal service. Such changes=
=20
will ensure continued investment in our nation=92s communications=20
infrastructure that benefits all users, regardless of where they live in=20
America. The senators have acknowledged the need for policies that=20
preserve and encourage the robust network upon which advanced services such=
=20
as voice over Internet protocol and IP video rely. We applaud their=20
dedication to the worthy goal of ensuring all Americans continue to have=20
access to advanced, affordable communications services, including=20
broadband, and the opportunities provided therein. NTCA commends the=20
senators for their continued strong leadership on rural issues, their=20
forward-looking vision, and their unfaltering commitment to universal=20
access to communications services. We particularly welcome the=20
introduction of this legislation at the time when the other side of the=20
telecom rewrite debate has emerged in the form of deregulation legislation=
=20
introduced by Senators John Ensign (R-NV) and John McCain (R-AZ). We look=
=20
forward to evaluating the Ensign/McCain bill and working with these=20
senators and the entire Congress to ensure the enactment of legislation=20
that will benefit rural America and the nation as a whole.=94
[SOURCE: National Telecommunications Cooperative Association]
http://www.ntca.org/ka/ka-3.cfm?content_item_id=3D3554&folder_id=3D522

USTELECOM PRAISES SENATORS FOR PUTTING UNIVERSAL SERVICE REFORM ON TABLE
We applaud Senators Smith, Dorgan and Pryor for their leadership in=20
drafting the first attempt at comprehensive universal service reform=20
legislation in the 109th Congress. This bill offers realistic direction=20
for addressing inter-carrier compensation and broadening and stabilizing=20
the contribution base for Universal Service. USTelecom is deeply committed=
=20
to the long-term sustainability of universal service as well as access to=
=20
broadband for all Americans, particularly in rural areas. We will continue=
=20
to work with the senators and their colleagues to address these critical=20
issues as part of comprehensive telecom reform.
[SOURCE: United States Telecom Association]
http://www.ustelecom.org/news_releases.php?urh=3Dhome.news.nr2005_0801

BELLSOUTH SAYS REFORM OF UNIVERSAL SERVICE NEEDED TO RESCUE FUND FROM 'LIFE=
=20
SUPPORT'
"The changes in the technologies of communication have put the universal=20
service fund on life support. This legislation recognizes the problems that=
=20
need to be addressed and offers well-reasoned solutions. These solutions=20
may not be everyone's cup of tea, but the legislation is a very fine start.=
=20
Universal Service reform will need to be included in comprehensive=20
telecommunications legislation. This bill represents an enormous step=20
forward."
[SOURCE: BellSouth Press Release]

KIDS

THE INTERNET AT SCHOOL
The Internet is an important element in the overall educational experience=
=20
of many teenagers. Schools are a common location where online teens access=
=20
the web, although very few online teenagers rely exclusively on their=20
school for that web access. Further, there is widespread agreement among=20
teens and their parents that the Internet can be a useful tool for school.=
=20
However, 37% of teens say they believe that =93too many=94 of their peers a=
re=20
using the Internet to cheat. And there is some disagreement among teens and=
=20
their parents about whether children must be web-literate by the time they=
=20
begin school. Additionally, large numbers of teens and adults have used the=
=20
web to search for information about colleges and universities. The most=20
recent Pew Internet Project survey finds that 87% of all youth between the=
=20
ages of 12 and 17 use the Internet. That translates into about 21 million=
=20
people. Of those 21 million online teens, 78% (or about 16 million=20
students) say they use the Internet at school. Put another way, this means=
=20
that 68% of all teenagers have used the Internet at school.
[SOURCE: Pew Internet & American Life Project, AUTHOR: Lee Rainie & Paul=20
Hitlin]
http://www.pewinternet.org/PPF/r/163/report_display.asp

NOT MR ROGERS' NEIGHBORHOOD ANYMORE
With well-regarded programs like Nickelodeon=92s Blues' Clues and Dora the=
=20
Explorer=97not to mention Internet offerings and video games=97siphoning aw=
ay=20
PBS=92s core young audience, some producers are worried about the long-term=
=20
prospects of each of PBS=92s 27 kid-focused programs. Nickelodeon now=20
broadcasts over 112 hours a week of original preschool programs, compared=
=20
with approximately 38 hours for PBS. Nickelodeon's original shows for=20
children comprise the 10-most-watched shows among children 2 to 5 in 2005,=
=20
according to the network. Several public broadcasting experts, including=20
Alyce Myatt=97until recently a manager of PBS children=92s programming=97ar=
e=20
concerned that PBS administrators aren't focusing enough on the educational=
=20
and creative elements needed to strengthen the network's offerings for=20
children. "I don't know why they aren't getting it right," she says. "But=
=20
they are certainly missing the mark, which has led them to a dilemma." Such=
=20
concerns have arisen against a backdrop of Congressional debates on whether=
=20
or not to restore full PBS program funding.
[SOURCE: Connect4Kids, AUTHOR: Robert Capriccioso]
http://www.connectforkids.org/node/3296

QUICKLY

CHARTER, COMCAST EXPAND SIMULCASTING -- MAY AVOID MUST-CARRY
Comcast and Charter are expanding simulcasting of programs in digital and=
=20
analog, in a move that some analysts say may help cable operators head off=
=20
a must-carry legislative battle. Congressional committees may take up=20
must-carry in a so-called mop-up bill after passing broader DTV=20
legislation, Hill sources have said. Cable operators may be able to head=20
off mandates by starting simulcasting now, analysts suggest. =93It=92s a wa=
y=20
for them to avoid the issue before it becomes an issue,=94 said Jefferies &=
=20
Co. analyst Robert Routh. =93It would be very difficult for anybody to pres=
s=20
them to do more than what they=92re already doing,=94 Routh said. =93It=92s=
a=20
preemptive move by Comcast that makes a tremendous amount of sense,=94 he=
=20
said, adding that =93Charter of all the operators can't afford to really be=
=20
involved in any regulatory battles=94 because of financial and management=
=20
issues.
[SOURCE: Communications Daily, AUTHOR: Jonathan Make]
(Not available online)

RUSSIA BARS ABC, CITING INTERVIEW WITH CHECHEN REBEL
Russia announced Tuesday that it was barring journalists from ABC News from=
=20
working there, effectively expelling a foreign news organization for the=20
first time since the collapse of the Soviet Union. The decision underscored=
=20
not only Russia's sensitivity to foreign perceptions of the war in=20
Chechnya, but also a seething and evidently growing antipathy toward the=20
United States and other countries viewed as hostile to Russia. Journalist=
=20
advocacy groups reacted with surprise and dismay. Lucie Morillon, the=20
representative in Washington for Reporters Without Borders, called the=20
decision appalling. "We see this as a blow for freedom of press and the=20
presentation of news in Russia," she said. "It is a warning to other=20
foreign news organizations. It's like telling them, 'If you don't cover the=
=20
Chechen conflict the way they want, you won't be able to work in Russia.' "
[SOURCE: New York Times, AUTHOR: ]
http://www.nytimes.com/2005/08/03/international/europe/03russia.html
(requires registration)

NOTES FROM THE TELUS PICKET LINE
An acrimonious and long-running labor dispute between Canada=92s Number Two=
=20
telco and ISP Telus and its 13,500 unionized employees over the weekend=20
degenerated even further as the some union members charged Telus with=20
blocking access to a pair of pro-union Web sites. Telus says it=92s not=20
blocking just two =96 it=92s blocking three and preparing to block even mor=
e=20
because it says the sites are being used to plot a massive=20
denial-of-voice-service attack against its operations. The sites had also=
=20
posted confidential company documents, the carrier charges. It says it=92s=
=20
called Canadian law-enforcement authorities to investigate possible=20
criminal activity involved in planning the denial of service.
[SOURCE: Telecomweb]
http://www.telecomweb.com/broadband/feature.htm

STUDY: BROADBAND PENETRATION TO SURGE BY 2010
Last year, 29 percent of North American households connected to the Net via=
=20
broadband. This number will be 62 percent by 2010, Forrester Research=20
predicts. Factors such as lower prices, enhanced home support and better=20
communication of benefits will fuel broadband growth. By 2010, 53 percent=
=20
U.S. households will own a laptop, while 37 percent will use a digital=20
video recorder to control their television watching. With more gadgets and=
=20
PCs in the home, networking will also grow to 46.5 million households by=20
2010. At present, 8.8 percent of households have a home network.
[SOURCE: C|Net/News.com]
http://news.com.com/Study+Broadband+penetration+to+surge+by+2010/2100-10...
3-5815756.html?tag=3Dnefd.top

LEGISLATOR SEEKS LOOSER REGULATION FOR SMALLER CABLE TV OPERATORS
The American Cable Association -- primarily small suburban and rural cable=
=20
operators -- face a number of challenges including 1) a potential Dec. 31,=
=20
2008, deadline to make the transition from analog to digital TV service and=
=20
2) negotiating more favorable deals with wealthier, more powerful=20
broadcasting interests.
[SOURCE: Technology Daily, AUTHOR: Sarah Z. Sleeper]
http://www.njtelecomupdate.com/lenya/telco/live/tb-TLYP1123013575866.html

DRUG COMPANIES TO SUBMIT TV ADS TO FDA
Drug manufacturers have adopted a new voluntary code for direct-to-consumer=
=20
ad guidelines, including submitting TV ads to the FDA before they run,=20
better balancing risk and benefit info in those ads, banning "reminder" ads=
=20
that don't include educational information, and targeting ED ads to=20
appropriate age groups.
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
http://www.broadcastingcable.com/article/CA631583?display=3DBreaking+New...
eferral=3DSUPP
(free access for Benton's Headlines subscribers)
* Drug Firms Take a Dose of Responsibility for Ads
http://www.washingtonpost.com/wp-dyn/content/article/2005/08/02/AR200508...
1960.html
* Drug Firms Seek Ad Remedy
http://www.washingtonpost.com/wp-dyn/content/article/2005/08/02/AR200508...
1817.html
* Drug ad guidelines hold a few surprises
http://www.usatoday.com/printedition/money/20050803/drug_guidelines03.ar...
tm
* Drug Makers Set Voluntary Curbs on TV, Other Ads
http://www.latimes.com/news/printedition/asection/la-na-drugads3aug03,1,...
764.story?coll=3Dla-news-a_section
--------------------------------------------------------------
Communications-related Headlines is a free online news summary service=20
provided by the Benton Foundation (www.benton.org). Posted Monday through=
=20
Friday, this service provides updates on important industry developments,=
=20
policy issues, and other related news events. While the summaries are=20
factually accurate, their often informal tone does not always represent the=
=20
tone of the original articles. Headlines are compiled by Kevin Taglang=20
(headlines( at )benton.org) -- we welcome your comments.
--------------------------------------------------------------

Benton's Communications-related Headlines For Tuesday August 2, 2005

For upcoming media policy events, see http://www.benton.org/calendar.htm

OWNERSHIP
Fighting Big Cable (and why it matters)
Big Media Paying Big to Find Kids
Cable Companies Call Up New Growth Story
News Corp Television Unit Under the Spotlight

REVENUES
Senate Bill Aimed at Cable-Data Revenue
Estimates Vary On Value Of Spectrum
Senators Seek Web Porn Tax

AT THE FCC
Telcos May Get Own Brand X
Paxson Shuffles Off DTV in Buffalo

QUICKLY -- Isolating our points of viewing; NAB/MSTV Tout Digital Dozen;=20
ACA, PBS Eye Carriage Guidelines; NCTC Says Yes to TiVo; Nextel to seek=20
more time for locating 911 callers; Job Openings: Free Press; Online Gym Cl=
ass

OWNERSHIP

FIGHTING BIG CABLE (AND WHY IT MATTERS)
Comcast (the nation's biggest cable company) and Time Warner (the second=20
biggest) are dividing up the bankrupt corpse of Adelphia. At the same time,=
=20
they are swapping their own systems so that in cities where Time Warner and=
=20
Comcast compete against each other (like New York and Los Angeles) they=20
won't compete anymore. Well, you may ask, what's the big deal? So I=20
switch from having no choice but Adelphia to no choice but Comcast or Time=
=20
Warner. Why should I care? The answer depends on some rather complicated=20
economics. Briefly, to advertisers, programmers, and politicians, the=20
ability to control a city (or, as they call it when measuring effects, a=20
=93designated market area=94 or DMA) is much more valuable than the same nu=
mber=20
of customers spread out over the whole country. Also, it turns out, DBS=20
makes a rather poor competitor to cable.
[SOURCE: Tales of the Sausage factory, AUTHOR: Harold Feld]
http://www.wetmachine.com/totsf/item/328
See also:
* It's time to stand up to Comcast
Last week, 12,000 people complained to the FCC about cable's rising prices=
=20
and anti-competitive practices. They urged it to reject a proposed deal=20
that would further enlarge Comcast and Time Warner, already the nation's=20
top two cable companies.
[SOURCE: Philadelphia Inquirer, AUTHOR: Jeff Gelles]
http://www.philly.com/mld/inquirer/business/12272327.htm

BIG MEDIA PAYING BIG TO FIND KIDS
Recent deals by News Corp. and Viacom for two popular social Web sites =AD=
=20
MySpace.com and NeoPets.com =AD priced in the hundreds of millions of dolla=
rs=20
underscore the frantic search for teens and 20-somethings who have cut back=
=20
on their television time and are turning down newspapers, magazines and=20
even radio. MySpace=92s 22 million members, nearly all in their teens or=20
early 20s, represent the Sasquatch of the advertising world =AD elusive and=
=20
hunted. People create a presence on the site through profiles that list=20
their interests, activities, and favorite bands, books and movies. It=92s a=
=20
wealth of information that people don't usually make available to companies=
=20
or advertisers. And it=92s a marketer=92s dream, making News Corp.=92s $580=
=20
million purchase for Intermix Media Inc., parent of MySpace, worth the=20
price in the eyes of some on Wall Street. =93It=92s so much more than just=
=20
e-mail addresses,=94 said Scott Kessler, Internet analyst with Standard &=
=20
Poor=92s. =93You can see what kinds of activities they=92re engaged in and =
tap=20
into trends.=94 Consider the ways in which the information can be used. Whe=
n=20
trying to reach potential buyers of running shoes, for example, News Corp.=
=20
knows which MySpace members are joggers. Those ads could command a premium=
=20
from advertisers, although they also carry a risk. =93That would likely end=
=20
up in alienating the usership, depending how it=92s done,=94 Kessler said.=
=20
=93Part of it is figuring out how quickly that is going to turn someone off=
.=94
[SOURCE: Los Angeles Business Journal, AUTHOR: Hilary Potkewitz]
http://www.labusinessjournal.com/article.asp?aID=3D160434202.7060305.117...
1.9719163.4442175.654&aID2=3D90458

CABLE CONSUMERS CALL UP NEW GROWTH STORY
Enterprises such as phone and high-speed Internet may be just the ticket=20
for cable companies, which need a new growth story as their=20
bread-and-butter video businesses steadily lose subscribers to=20
satellite-television operators. The companies want to maintain the=20
double-digit rate of revenue increases that Wall Street needs to keep=20
valuing cable shares as growth stocks, which investors commonly believe=20
should trade at more than nine times earnings before interest, taxes,=20
depreciation and amortization, or Ebitda, a common metric in cable. For=20
cable, the phone business has the potential to deliver results as good as,=
=20
or even better than, high-speed Internet -- eventually easing the concerns=
=20
over the video side of the business. The residential phone market is=20
estimated by Sanford C. Bernstein & Co. to be $60 billion, about $10=20
billion more than the entire pay-TV market. Analysts believe cable=20
companies could capture as much as 30% of it.
[SOURCE: Wall Street Journal, AUTHOR: Peter Grant peter.grant( at )wsj.com]
http://online.wsj.com/article/0,,SB112294394752002167,00.html?mod=3Dtoda...
us_money_and_investing
(requires subscription)

NEWS CORP TELEVISION UNIT UNDER SPOTLIGHT
News Corp's TV station group, one of the largest in the nation, has long=20
been one of the company's biggest profit centers. The stations account for=
=20
roughly 10% of revenue and 30% of operating income at News Corp. Just as=20
important, the group is strategically crucial as the main outlet for the=20
Fox broadcast network. The stations are also useful for other businesses,=
=20
such as Fox's sister cable networks, that need on-air promotion. Over the=
=20
past several years, the TV station group's performance has come under=20
pressure and turning the stations around has become a high priority. While=
=20
operating income increased 6% at the station group in the most recent=20
quarter, Wall Street analysts say the growth has been weaker than expected.=
=20
Poor programming decisions have hurt the group over the past few years. An=
=20
ill-fated talk show with "American Idol" host Ryan Seacrest proved to be an=
=20
expensive flop and an attempt to revive its 1980s tabloid hit "A Current=20
Affair" has failed to catch on with viewers. In the May sweeps, a crucial=
=20
ratings period, the Fox stations affiliated with the Fox network saw a=20
collective drop of almost 20% in the key adults 18-49 demographic,=20
according to Nielsen Media Research. Viewership for the late news, a key=20
profit center for local television stations, dropped by almost 10% in that=
=20
same demographic from two years ago.
[SOURCE: Wall Street Journal, AUTHOR: Julia Angwin julia.angwin( at )wsj.com and=
=20
Joe Flint joe.flint( at )wsj.com]
http://online.wsj.com/article/0,,SB112294019656102084,00.html?mod=3Dtoda...
us_marketplace
(requires subscription)

REVENUES

SENATE BILL AIMED AT CABLE-DATA REVENUE
Last Friday, Sens. Gordon Smith (R-OR), Byron Dorgan (D-ND) and Mark Pryor=
=20
(D-AR) introduced legislation, (S. 1583), could require cable to contribute=
=20
some of its $10 billion in broadband-access revenue to launch and sustain a=
=20
new subsidy program designed to deliver high-speed data to unserved areas.=
=20
Cable contribution of access revenue would be decided at the discretion of=
=20
the Federal Communications Commission. The agency would be authorized to=20
spend a maximum of $500 million annually on the rural-broadband program.=20
The phone-subsidy program, called universal service, is popular with rural=
=20
lawmakers. But expanding it to including broadband access could prove=20
controversial because some on Capitol Hill think the current program is=20
mismanaged and needs to be reformed before mission expansion is adopted.
[SOURCE: Multichannel News, AUTHOR: Ted Hearn]
http://www.multichannel.com/article/CA631488.html?display=3DBreaking+News
(requires subscription)

ESTIMATES VARY ON VALUE OF SPECTRUM
The Congressional Budget Office has not revised its $10 billion estimate of=
=20
the value of the spectrum to be obtained when a "hard date" is set to=20
complete the transition to digital television broadcasts. But CBO's=20
estimate is considerably lower than two separate private sector analyses of=
=20
the value of the broadcast spectrum currently in use from channels 52 to=20
69. Those estimates are $24-$28 billion. CBO's estimate of $10 billion in=
=20
federal receipts from auctioning airwaves comes on top of top of an=20
estimated $15 billion in federal receipts from another piece of spectrum=20
currently scheduled for auction in June 2006. Individuals familiar with=20
budget officials' thinking said they believe the anticipated auction of 90=
=20
megahertz of spectrum for advanced wireless services is certain to diminish=
=20
the value of the DTV spectrum below what has been scored by private sector.
[SOURCE: Technology Daily, AUTHOR: Drew Clark]
http://www.njtelecomupdate.com/lenya/telco/live/tb-UDUP1122927526162.html

SENATORS SEEK WEB PORN TAX
Last week, Sen. Blanche Lincoln (D-AK) introduced the Internet Safety and=
=20
Child Protection Act of 2005, a bill that would apply only to adult sites=
=20
subject to controversial record-keeping requirements regarding the=20
identities of people participating in sex acts displayed on Web sites.=20
Those sites must cough up the taxes and use age verification techniques=20
"prior to the display of any pornographic material, including free=20
content." Sen Lincoln characterized her bill as a way to make the Internet=
=20
a "safer place" for children. The bill would impose a 25 percent tax on the=
=20
revenue of most adult-themed Web sites. But legal scholars who specialize=
=20
in the First Amendment say courts have rejected similar taxes in the=20
past--and are likely to do so again, if Lincoln's proposal becomes law.=20
Other Senate sponsors of the legislation--all Democrats--include Thomas=20
Carper of Delaware, Mark Pryor of Arkansas, Mary Landrieu of Louisiana,=20
Joseph Lieberman of Connecticut, Ken Salazar of Colorado, Debbie Stabenow=
=20
of Michigan, Evan Bayh of Indiana and Kent Conrad of North Dakota.
[SOURCE: C-Net|News.com, AUTHOR: Declan McCullagh]
http://news.com.com/Senators+seek+Web+porn+tax/2100-1030_3-5814309.html?...
=3Dnefd.top

AT THE FCC

TELECOS MAY GET OWN BRAND X
Circulating at the FCC is a proposal to extend cable's "Brand X" Supreme=20
Court victory to teleco's DSL service. The item could potentially make it=
=20
to the Aug. 4 meeting agenda, which has activist group Public Knowledge=20
weighing in with its own suggestions. =93The Commission=92s actions will sh=
ape=20
the broadband future for years to come," says Legal Director Mike Godwin.=
=20
"Thus, its deregulatory efforts should be implemented in ways that favor=20
the competition inherent in open and accessible
networks.=94 Of course, the Brand X decision was all about freeing cable fr=
om=20
open access requirements, which the FCC concluded would advance the=20
roll-out of broadband, one of President Bush's priorities.
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
http://www.broadcastingcable.com/article/CA631497?display=3DBreaking+New...
eferral=3DSUPP
(free access for Benton's Headlines subscribers)

PAXSON SHUFFLES OFF DTV IN BUFFALO
Paxson's WPXJ (Buffalo, NY) is voluntarily turning in its digital channel=
=20
assignment (53) -- it was not yet broadcasting a DTV signal, according to=
=20
the FCC--and will continue to broadcast in analog on its current channel=20
(51), agreeing to "flash-cut" to digital on that channel by the end of the=
=20
transition. The FCC has eight more pending requests to "flash-cut." While=
=20
most stations are required to broadcast in both analog and digital during=
=20
the transition, stations other than affiliates of the top four networks=20
whose digital allotments are outside the core channels 2-51, are allowed to=
=20
turn those non-core digital channels (52-59) back to the government and=20
broadcast in analog-only on their in-core channel before switching over to=
=20
digital-only on that same channel by the deadline for the digital=20
changeover. The reason behind allowing the flash-cuts and give-backs is to=
=20
more swiftly clear out broadcasters so the upper spectrum tier can be=20
reclaimed for auctioning for advanced wireless services and emergency=20
communications.
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
http://www.broadcastingcable.com/article/CA631244?display=3DBreaking+New...
eferral=3DSUPP
(free access for Benton's Headlines subscribers)

QUICKLY

ISOLATING OUR POINTS OF VIEW
[Commentary] Ever wonder why cable TV news seems to be a growing morass of=
=20
true-crime stories, conflict-driven talk shows and endlessly repeated=20
minutiae? Or why mainstream media seems increasingly focused on a shrinking=
=20
niche of consumers and their very specific political/social interests? It=
=20
all ties into a growing trend among consumers: an impatience with media=20
that doesn't speak to their specific needs immediately "The audience . . .=
=20
is busier than it has ever been. They don't have time for stories that=20
waste their time," said CNN/U.S. president Jonathan Klein, who has drawn=20
criticism for the newschannel's aggressive coverage of hot-button,=20
videogenic stories such as Terri Schiavo's death, runaway bride Jennifer=20
Wilbanks and Michael Jackson's trial. "Technology has sped up the pace of=
=20
life, but it hasn't created more free time. So we've got to take the news=
=20
of the day and show viewers all aspects of the story in an arresting new=20
way." Such trends are great news for media that provide constant access for=
=20
a multitude of customers in small niches: cable TV, satellite radio, video=
=20
games and the Internet. But this on-demand attitude makes losers of media=
=20
that attract large numbers of consumers through a variety of material,=20
forcing every customer to wade through some things they don't like. That=20
list includes newspapers, network TV and broadcast radio.
[SOURCE: St. Petersburg Times, AUTHOR: Eric Deggans deggans( at )sptimes.com]
http://www.sptimes.com/2005/07/31/Floridian/Isolating_our_points_.shtml

NAB/MSTV TOUT DIGITAL DOZEN
The National Association of Broadcasters (NAB) and Association for Maximum=
=20
Service Television (MSTV) say they have received a dozen quotes from=20
consumer-electronics firms for a digital-to-analog converter box. The two=
=20
associations said they would start taking an active role in developing a=20
low-cost analog-to-digital converter box. MSTV President David Donovan=20
says the dozen includes "some of the largest consumer-electronics companies=
=20
in the world." In theory that means there's members of the Consumers=20
Electronics Association in the bunch. NAB and the Consumer Electronics=20
Association have been in a war of words over the switch to digital. CEA has=
=20
pushed a hard date while NAB has argued that could disenfranchise viewers.=
=20
At one point, the two groups were planning to work together to promote the=
=20
digital switch, but had a falling- out and have been at some variation of=
=20
public loggerheads ever since. However, Donovan says he is looking forward=
=20
to working with consumer electronics companies on the new box. Many=20
consider the digital switch to be political poison for both the TV industry=
=20
and Washington, particularly if analog television consumers are left=20
without a low-cost or no-cost alternative to digital (or if digital TV=20
offers just more of the same xxxx that's now on analog TV.)
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
http://www.broadcastingcable.com/article/CA631474?display=3DBreaking+New...
eferral=3DSUPP
(free access for Benton's Headlines subscribers)

ACA, PBS EYE CARRIAGE GUIDELINES
The American Cable Association is talking with PBS TV stations about=20
forging an agreement setting guidelines for smaller operators to carry=20
public stations and their digital-multicast signals. The agreement being=20
discussed -- which individual ACA members could decide whether or not to=20
participate in -- would be similar to the pact the National Cable &=20
Telecommunications Association reached earlier this year with the=20
Association of Public Television Stations.
[SOURCE: Multichannel News, AUTHOR: Linda Moss]
http://www.multichannel.com/article/CA631489.html?display=3DBreaking+News
(requires subscription)

NCTC SAYS YES TO TIVO
The National Cable Television Cooperative, which represents small- to=20
medium-sized cable operators that serve more than 14 million subscribers,=
=20
has inked a deal with TiVo to bring the DVR service to NCTC systems.
[SOURCE: Broadcasting&Cable, AUTHOR: Ken Kerschbaumer]
http://www.broadcastingcable.com/article/CA631487?display=3DBreaking+New...
eferral=3DSUPP
(free access for Benton's Headlines subscribers)

NEXTEL TO SEEK MORE TIME FOR LOCATING 911 CALLERS
Nextel Communications plans to ask for a waiver from a December deadline=20
that 95 percent of its customers' wireless phones be capable of identifying=
=20
the location of a caller to emergency personnel.
[SOURCE: Reuters]
http://today.reuters.com/news/newsArticle.aspx?type=3DtechnologyNews&sto...
D=3D2005-08-01T233916Z_01_N01565782_RTRIDST_0_TECH-TELECOMS-NEXTEL-911-DC.X=
ML

JOB OPENINGS: FREE PRESS
1) Free Press has immediate openings for: 1) an Online Organizer to develop=
=20
and implement strategies to encourage public participation in media policy=
=20
making. This position is based in its Northampton, MA office and 2) a=20
Finance Manager to ensure sound financial management and human resource=20
practices for our growing organization. This position is also based in the=
=20
Northampton, MA office.
http://www.freepress.net/content/opportunities

ONLINE CLASSES OFFER VIRTUAL DISSECTION, BUT GYM STILL TAKES SWEAT
Yes, it is August, not April. You can now take gym class online.
[SOURCE: New York Times, AUTHOR: Sam Dillon]
http://www.nytimes.com/2005/08/02/education/02gym.html
(requires registration)
--------------------------------------------------------------
Communications-related Headlines is a free online news summary service=20
provided by the Benton Foundation (www.benton.org). Posted Monday through=
=20
Friday, this service provides updates on important industry developments,=
=20
policy issues, and other related news events. While the summaries are=20
factually accurate, their often informal tone does not always represent the=
=20
tone of the original articles. Headlines are compiled by Kevin Taglang=20
(headlines( at )benton.org) -- we welcome your comments.
--------------------------------------------------------------

Benton's Communications-related Headlines For Monday August 1, 2005

For upcoming media policy events, see http://www.benton.org/calendar.htm

POLICYMAKERS
White House Picks Russell, Tate for FCC Slots, Sources Say

LEGISLATION
Ensign Takes Tiller on Telecom Measure
City Officials Concerned That Ensign Bill Would
Gut Communications Act
Franchise Reform Stalls in Texas

MERGERS/OWNERSHIP
Supreme Court Nominee John Roberts' Views on Media Ownership and
Telecom Policy Must Be Raised by Senate
Comcast Foes Are Lining Up at FCC
Weigh Conditions on Phone Deals, Lawmakers Say
Sprint-Nextel's Sideshow Battle
Can Anyone Answer Vodafone?
At News Corp, a Bitter Battle Over Inheritance Splits Family

CABLE
After 'Brand X,' New Challenges
NCTA: Broadcasters Want a Free Ride
Alarming Deadline
Cable's Wake-Up Call

BROADCASTING
You Can't Avoid the Commercials

PUBLIC-SUPPORTED MEDIA
Independent Media Development Abroad: Challenges Exist in Implementing
U.S. Efforts and Measuring Results
Crusaders at the CPB

QUICKLY -- More People Turn to the Web to Watch TV; DVD Tests DTV Captions;=
=20
DHS Extends Digital Emergency Alert Pilot; Armstrong Williams is making a=
=20
comeback

POLICYMAKERS

WHITE HOUSE PICKS RUSSELL, TATE FOR FCC SLOTS, SOURCES SAY
The White House is expected to announce the nomination of White House aide=
=20
Richard Russell and Tennessee state regulator Deborah Tate as new FCC=20
Commissioners. The two were chosen Thursday in a White House meeting from a=
=20
slate of about six candidates, according to a source familiar with the=20
proceedings. An announcement was expected late Friday, but could come this=
=20
week. FCC Commissioner Copps also is expected to be reappointed to another=
=20
term. =93If nominated and confirmed, they [Russell and Tate] would likely=
=20
give FCC Chairman Martin a working majority,=94 said telecom analyst Blair=
=20
Levin, a Chief of Staff under former FCC Chairman Reed Hundt. Both=20
candidates should aid Martin with his deregulatory agenda, particularly in=
=20
liberalizing media ownership rules, Levin said. They also are likely to=20
back his policies on broadband parity with cable and finalizing FCC=20
decisions on the two Bell mergers. Levin said the candidates likely would=
=20
be inclined favorably toward telco and cable but =93problematic=94 for=20
telephony competitors. Russell could prove =93challenging=94 for broadcasti=
ng=20
on spectrum issues, though =93we have no reason to think he would be an=20
opponent of media ownership deregulation that could help broadcasters,=94=
=20
Levin said in an analyst=92s note.
[SOURCE: Communications Daily, AUTHOR: Anne Veigle]
(Not available online)
* Source: Russell, Tate Heading to FCC
http://www.multichannel.com/article/CA630893.html?display=3DBreaking+News
* Russell, Tate Poised For FCC Nods
http://www.broadcastingcable.com/article/CA630888?display=3DBreaking+News
* Sources: Bush Aide, Tenn. Official Likely Nominees For Vacant FCC Slots
http://www.njtelecomupdate.com/lenya/telco/live/tb-WPJI1122669087672.html

LEGISLATION

ENSIGN TAKES TILLER ON TELECOM MEASURE
The first major piece of telecommunications legislation emerged in the=20
Senate last week, and the cable industry did not come out a winner.=20
Probably the best thing going for cable right now is that it is much easier=
=20
to stall a bill than to pass one. Going to bat for the Baby Bells and other=
=20
wireline cable rivals, Sen. John Ensign (R-NV) last Wednesday introduced a=
=20
sweeping telecommunications-deregulation legislation (S. 1504) along with=
=20
Sen. John McCain (R-AZ). Key provisions would allow phone companies to=20
offer video without a franchise and to gain access to all cable-affiliated=
=20
programming. How far Sen Ensign=92s bill will advance depends on his abilit=
y=20
to negotiate details with Senate Commerce Committee chairman Ted Stevens=20
(R-Alaska).
[SOURCE: Multichannel News, AUTHOR: Ted Hearn]
http://www.multichannel.com/article/CA630934.html?display=3DPolicy
(requires subscription)

CITY OFFICIALS CONCERNED THAT ENSIGN BILL WOULD GUT COMMUNICATIONS ACT
City officials announced their strong opposition last week to a bill just=
=20
introduced by Senator John Ensign (R-NV) to rewrite the Communications Act,=
=20
which appears to gut the role that local and state government plays in=20
protecting the rights of citizens. =93This bill takes away most controls a=
nd=20
protections that local governments need to monitor and ensure that the=20
communications industry is responsible and responsive to our citizens,=94=
=20
said Arvada (CO) Mayor Ken Fellman, and lead spokesman for the National=20
League of Cities (NLC) on telecommunications issues. =93This bill eliminat=
es=20
local cable franchising altogether. It cripples our ability as local=20
governments to manage our public rights-of-way and it blocks our efforts to=
=20
ensure that communications services are available to anyone, not just the=
=20
chosen few.=94 NLC will be working with state leagues and local elected=20
officials to educate Congress about the strong opposition of local=20
governments to this bill. The chairs of both the Senate and House Commerce=
=20
Committees, Sen. Ted Stevens (R-Alaska) and Rep. Joe Barton (R-Texas) are=
=20
expected to introduce their own rewrite bills later this year.
[SOURCE: National League of Cities Press Release]
http://www.nlc.org/Newsroom/Nation_s_Cities_Weekly/Weekly_NCW/2005/07/25...
43.cfm

FRANCHISE REFORM STALLS IN TEXAS
As of early Friday, virtually identical bills are lined up in the Texas=20
state House and Senate that would create statewide cable franchising for=20
newcomers, but would also deregulate local phone rates and authorize=20
broadband-over-powerline (BPL) service, among other things. But because of=
=20
the state's debate over school funding, the bills are stalled.
[SOURCE: Multichannel News, AUTHOR: Linda Haugsted]
http://www.multichannel.com/article/CA631101.html?display=3DTop+Stories
(requires subscription)

MERGERS/OWNERSHIP

SUPREME COURT NOMINEE JOHN ROBERTS' VIEWS ON MEDIA OWNERSHIP AND TELECOM=20
POLICY MUST BE RAISED BY SENATE
The Center for Digital Democracy (CDD) called on members of the Senate=20
Judiciary Committee today to investigate the views of Judge John Roberts on=
=20
media and telecommunications issues. Among the areas that require intense=
=20
vetting include the role that Roberts played in developing the legal=20
arguments for the TV networks claiming that limits on national ownership be=
=20
eliminated (Fox Stations v. FCC). In Fox, where Judge Roberts served as a=
=20
counsel for the petitioners, TV networks News Corp./Fox, GE/NBC, and=20
Viacom/CBS made many of their familiar arguments for sweeping away FCC=20
rules that ensure diversity of viewpoint and ownership (and limit their=20
overall national holdings). Among the most troubling claims was that=20
=93[T]he National Television Station Ownership Rules Abridges the Free Spee=
ch=20
Rights of Broadcasters=85.=94 They argued that =93[T]he rules directly res=
trict=20
speech by prohibiting broadcasters from exercising their editorial=20
discretion to select and provide the video programming of their choice in=
=20
the localities of their choice and to the audience of their choice.=94 Doe=
s=20
Judge Roberts believe that federal rules designed to ensure diversity in=20
the U.S. communications system violate the =93First Amendment=94 rights of=
=20
media and telecommunications corporations? As a defender of the =93free=20
speech=94 rights of media corporations, what are Judge Roberts views on the=
=20
role of ownership policy to protect and enhance the First Amendment rights=
=20
of the public?
[SOURCE: Center for Digital Democracy ]
http://www.democraticmedia.org/news/JudgeRoberts.html

COMCAST FOES ARE LINING UP AT FCC
Whenever a big cable merger needs to get through the regulatory gauntlet,=
=20
marketplace disputes have a way of rising up and becoming matters that, at=
=20
least to cable critics, must be resolved before the deal can be approved.=
=20
The Comcast-Time Warner deal to buy Adelphia is no different as The America=
=20
Channel (TAC), DirecTV, EchoStar Communications and an array of=20
public-interest groups have asked the Federal Communications Commission to=
=20
apply conditions to the deal. Federal Trade Commission approval is also=20
required. This week, TAC is planning to file documents with the FCC=20
intended to show that Comcast has a pattern and practice of providing=20
carriage terms and conditions to affiliated networks that are seldom doled=
=20
out to independent programmers. TAC is expected to say that Comcast=20
affiliates not only get carriage commitments but also land spots on widely=
=20
penetrated analog tiers. Meanwhile, DirecTV is demanding guaranteed access=
=20
to regional sports networks to ensure that Comcast and Time Warner can't=20
obtain exclusive rights. The public-interest groups demanded several=20
conditions from the FCC if the merger were not denied, including=20
application of federal program-access rules to cable video-on-demand=20
content and a requirement that the MSOs provide consumers with multiple=20
Internet-access providers or adhere to network-neutrality rules with regard=
=20
to Internet-content providers. Media Access Project, a public-interest law=
=20
firm, filed on behalf of the groups. MAP's clients are: Free Press, Center=
=20
for Creative Voices in Media, Office of Communication of the United Church=
=20
of Christ Inc., U.S. Public Interest Research Group, Center for Digital=20
Democracy, CCTV, Center for Media & Democracy, Media Alliance, National=20
Hispanic Media Coalition, the Benton Foundation and Reclaim the Media.
[SOURCE: Multichannel News, AUTHOR: Ted Hearn]
http://www.multichannel.com/article/CA631090.html?display=3DTop+Stories
(requires subscription)

WEIGH CONDITIONS ON PHONE DEALS, LAWMAKERS SAY
On Friday, Sens. Mike DeWine and Herb Kohl, the Republican chairman and=20
ranking Democrat on the Senate Judiciary antitrust subcommittee,=20
respectively, recommended Department of Justice antitrust authorities and=
=20
the Federal Communications Commission consider attaching conditions on two=
=20
large telecommunications acquisitions (SBC-AT&T and Verizon-MCI), including=
=20
a requirement that they offer stand-alone high-speed Internet service. They=
=20
said they did not see the deals substantially lessening competition, but=20
still suggested authorities weigh some conditions. The Senators also=20
suggested the FCC and Justice Department consider: 1) making Verizon and=20
SBC commit to allowing data traffic to pass unfettered over their networks=
=20
to consumers, 2) whether the two acquiring companies should be required to=
=20
provide competitors with access to their emergency 911 networks on=20
non-discriminatory terms, and 3) ordering Verizon and SBC to sell=20
overlapping local telephone facilities they acquire, where necessary.
[SOURCE: Reuters]
http://today.reuters.com/news/newsArticle.aspx?type=3DinternetNews&storyID=
=3D2005-07-29T221653Z_01_N29460064_RTRIDST_0_NET-TELECOMS-MERGERS-DC.XML

SPRINT-NEXTEL'S SIDESHOW BATTLE
The $35 billion merger of Sprint and Nextel may become more expensive if=20
they are forced to buy some, or perhaps even all, of their affiliates.=20
Sprint revealed on July 11 that it would buy one of its affiliates, US=20
Unwired, for $1 billion in cash and the assumption of about $300,000 in=20
debt. US Unwired claimed that the Sprint-Nextel merger would undermine a=20
non-compete agreement. Nine other affiliates, including publicly held=20
Alamosa Holdings, Ubiquitel, and iPCS, face similar issues. So do a group=
=20
of smaller, privately held companies, including IWO, Northern PCS, Shentel,=
=20
Gulf Coast Wireless, Enterprise, and Switel. Nextel faces similar problems=
=20
with its sole affiliate, Nextel Partners.
[SOURCE: BusinessWeek, AUTHOR: Steve Rosenbush]
http://www.businessweek.com/technology/content/jul2005/tc20050725_5208_t...
4.htm

CAN ANYONE ANSWER VODAFONE?
On July 27, France Telecom said that it would pay $7.7 billion to acquire=
=20
an 80% stake in Amena, the No. 3 wireless operator in Spain, from telco=20
Grupo Auna. The deal reflects widespread consolidation in the European=20
wireless sector, where companies are racing to keep up with giant Vodafone=
=20
Group. With 165 million subscribers, Vodafone is the largest player by far.=
=20
That has put particular pressure on rivals in Europe. With its enormous=20
scale, Vodafone has been able to cut costs and pass savings along to=20
customers. Big national cellular carriers in Europe have no choice but to=
=20
create a platform that can rival Vodafone. More deals are on the way. The=
=20
big consolidators are likely to be France Telecom and Telefonica Moviles.=
=20
With the acquisition of wireless carrier Orange behind it, France Telecom=
=20
is already gaining power. Telefonica especially needs to find a way to=20
reverse a decline in operating profit margins. Deutsche Telekom, which=20
appears to be angling to grow its T-Mobile brand in Eastern Europe and the=
=20
U.S., looks to be playing a different game. But the biggest consolidator on=
=20
the Continent may yet be Vodafone, though. With a market cap of $167=20
billion, the company has the means to control its own destiny. And should=
=20
it ever decide to sell its 45% stake in U.S. giant Verizon Wireless to its=
=20
partner Verizon Communications, the deal would put tens of billions of=20
dollars into its war chest. Its position as a strong No. 2 in many markets=
=20
around the world puts it at the top of the heap overall, exerting unrivaled=
=20
influence in the market. To catch up, the big players in Europe's wireless=
=20
market must find a way to break down the national borders that have defined=
=20
their businesses for so long.
[SOURCE: BusinessWeek, AUTHOR: Steve Rosenbush]
http://www.businessweek.com/technology/content/jul2005/tc20050728_7414_t...
4.htm

AT NEWS CORP, A BITTER BATTLE OVER INHERITANCE SPLITS FAMILY
The Murdoch family controls nearly 30% of News Corp., one of the world's=20
biggest media conglomerates. Its far-flung properties include the New York=
=20
Post and Times of London newspapers, the Fox broadcast TV network, Fox News=
=20
Channel, control of satellite-TV services such as BSkyB in the United=20
Kingdom, Sky Italia and DirecTV in the U.S., as well as the 20th Century=20
Fox film studio. For the first time in 50 years, Rupert Murdoch's control=
=20
has come under threat. Liberty Media Corp., controlled by media titan John=
=20
Malone, disclosed late last year it had boosted its voting stake in News=20
Corp. to 18%, fewer than a dozen percentage points below the Murdoch=20
family's 29.5% stake. Last week, Lachlan Murdoch, who was once seen as his=
=20
father's heir apparent, said in a written statement last week he will=20
relocate to Australia, which he considers home, with his wife and young=20
baby. He will retain a seat on News Corp.'s board. In a written statement=
=20
Friday, Mr. Murdoch, 74, said he was "saddened" by his son's decision. The=
=20
departure is the most public sign of a rift between Rupert Murdoch's adult=
=20
children and his third wife and mother of his two toddler children. The=20
battle will decide who gets control of the media empire after Mr. Murdoch.
[SOURCE: Wall Street Journal, AUTHOR: Martin Peers martin.peers( at )wsj.com,=20
Julia Angwin julia.angwin( at )wsj.com and John Lippman john.lippman( at )wsj.com]
http://online.wsj.com/article/0,,SB112263384067799790,00.html?mod=3Dtoda...
us_page_one
(requires subscription)
* Behind Murdoch Rift, a Media Dynasty Unhappy in Its Own Way
http://www.nytimes.com/2005/08/01/business/media/01murdoch.html
* James Murdoch Begins to Cast His Own Shadow From BSkyB
The resignation of his older brother, Lachlan, from News Corp. executive=20
roles last week leaves James Murdoch as the leading family candidate to=20
take control of the media giant when Rupert Murdoch steps down or dies.=20
Still, people familiar with News Corp. caution that it could be many years=
=20
before Rupert Murdoch will want turn over the reins, and family dynamics=20
could easily change before then. In the near term, News Corp. President and=
=20
Chief Operating Officer Peter Chernin appears best poised to take the top=
=20
spot should the elder Mr. Murdoch step down.
http://online.wsj.com/article/0,,SB112285255424901006,00.html?mod=3Dtoda...
us_page_one

CABLE

AFTER BRAND X, NEW CHALLENGES
Despite winning the Brand X case, cable operators and their legal teams are=
=20
bracing for a whole new set of challenges from some of the same groups that=
=20
pushed for open access. Having lost the multiple-ISP fight, these groups=20
have a new cause -- it's called nondiscrimination, a rather open-ended=20
concept generally meaning that network owners have to behave like common=20
carriers even if not recognized as such by law. =93A cable company that has=
=20
complete control over its customers' access to the Internet could censor=20
their ability to speak, block their access to disfavored information=20
services, monitor their online activity, and subtly manipulate the=20
information sources they rely on,=94 said Jeff Chester, executive director =
of=20
the Center for Digital Democracy, a group on the losing side in Brand X.=20
Non-discrimination also goes by the name network neutrality, or net=20
neutrality. Its supporters assert a simple premise: Because cable operators=
=20
possess broadband access market power, regulation is justified until that=
=20
power dissipates to a point where the costs of discrimination (subscriber=
=20
loss) outweigh the benefits (profit maximization). Their thinking is that=
=20
if market forces unleashed by multiple ISPs can't protect consumers and Web=
=20
merchants, then government ought to -- by barring the few companies that do=
=20
provide network access from harming rivals in the marketplace.
[SOURCE: Multichannel News, AUTHOR: Ted Hearn]
http://www.multichannel.com/article/CA631098.html?display=3DTop+Stories
(requires subscription)

NCTA: BROADCASTERS WANT A FREE RIDE
Current law, as interpreted by the Federal Communications Commission,=20
entitles a must-carry station to one programming service on cable systems.=
=20
Otherwise, TV stations are entitled to negotiate cable carriage for as many=
=20
programming services as the market will bear. No bill with a serious chance=
=20
of passing has emerged that includes a multicast must-carry mandate. But=20
Senate Commerce Committee chairman Ted Stevens (R-Alaska), who is working=
=20
on ending the transition to digital-only transmission in 2009, supports a=
=20
multiple-carriage requirement for channels that have a public-service=20
focus, such as news and weather reports. In a paper released last week, the=
=20
National Cable & Telecommunications Association accused broadcasters of=20
seeking government carriage largess no matter what the impact on operators'=
=20
channel capacity or cable programmers' ability to gain or retain access to=
=20
cable homes.
[SOURCE: Multichannel News, AUTHOR: Ted Hearn]
http://www.multichannel.com/article/CA630927.html?display=3DTop+Stories
(requires subscription)
Link to NCTA paper:=20
http://www.ncta.com/press/press.cfm?PRid=3D614&showArticles=3Dok

ALARMING DEADLINE
Cable operators would have to disconnect phone customers by Aug. 30 if they=
=20
can't document that the customers had been informed about circumstances in=
=20
which emergency 911 calls won't function, the Federal Communications=20
Commission announced last Tuesday. The FCC's original deadline for MSOs to=
=20
contact every VoIP sub had been July 29, but the agency extended it by 30=
=20
days. The FCC is promising to take enforcement action for failure to comply=
=20
with its two-month-old notification rules. Cable operators have about 1=20
million VoIP customers.
[SOURCE: Multichannel News, AUTHOR: Ted Hearn]
http://www.multichannel.com/article/CA631092.html?display=3DTop+Stories
(requires subscription)

CABLE'S WAKE-UP CALL
The rollout of sophisticated products such as video-on-demand has stumped=
=20
cable operators in the marketing department and cable operators are still=
=20
suffering from decades-old customer-service problems.
[SOURCE: Broadcasting&Cable, AUTHOR: John M. Higgins]
http://www.broadcastingcable.com/article/CA631110?display=3DNews&referral=
=3DSUPP
(free access for Benton's Headlines subscribers)

CABLE INDUSTRY WARY OF INTERNET PROTOCOL TV
Will IPTV upend cable=92s distribution equilibrium? Or is it the Rosetta=20
Stone that turns cable operators into phone companies? Could be both, as it=
=20
turns out. But what does that mean for advertisers -- and why should they c=
are?
[SOURCE: AdAge, AUTHOR: Abbey Klaassen]
http://adage.com/news.cms?newsId=3D45667

BROADCASTING

YOU CAN'T AVOID THE COMMERCIALS
Beware: Television more and more is shill-o-vision, where commercial breaks=
=20
still come and go but the commercials never end. Foiling ad-aversive TiVo=
=20
users, TV honchos burn with gold-rush fever as they stake out a zap-proof=
=20
advertising gold mine: the programming itself. In 2004, the value of=20
television product placements (a product or brand name inserted for=20
marketing purposes into entertainment fare) increased by 46.4 percent over=
=20
the year before, to $1.88 billion. Not that "advertainment" is limited to=
=20
television. Video games, novels, movies, pop songs, music videos, Broadway=
=20
plays -- every nook and cranny of the culture, it seems, comes preinstalled=
=20
with product plugs. Or soon will. But TV is a little different. Its=20
broadcast channels are carried on public airwaves and regulated by the=20
Federal Communications Commission, which lately has been taking a new look=
=20
at embedded advertising -- and its potential for catching the audience=20
off-guard. "I think product placements can be deceptive, because most=20
viewers don't realize they're really advertisements," says FCC Commissioner=
=20
Jonathan S. Adelstein. "That's why there's a law that requires disclosure.=
=20
The question is: How well are we enforcing it?"
[SOURCE: Associated Press]
http://edition.cnn.com/2005/SHOWBIZ/TV/07/28/apontv.productplacement.ap/
See also:
* Payola: The Next Big Storm?
[Commentary] Like the =93perfect storm=94 that led to the strongest indecen=
cy=20
crackdown in FCC history, recent events could produce a wave of aggressive=
=20
FCC enforcement of payola and related sponsorship-identification rules.=20
Broadcasters ought to take protective action, and the FCC needs to be=20
careful not to interfere with broadcasters' editorial discretion and First=
=20
Amendment rights.
[SOURCE: Broadcasting&Cable, AUTHOR: David H. Solomon]
http://www.broadcastingcable.com/article/CA631113?display=3DOpinion&refe...
l=3DSUPP
(free access for Benton's Headlines subscribers)

PUBLIC-SUPPORTED MEDIA

INDEPENDENT MEDIA DEVELOPMENT ABROAD: CHALLENGES EXIST IN IMPLEMENTING US=
=20
EFFORTS AND MEASURING RESULTS
Independent media development led by the Department of State and the U.S.=
=20
Agency for International Development (USAID) supports the national security=
=20
goal of developing sustainable democracies around the world. Independent=20
media institutions play a role in supporting commerce, improving public=20
health efforts, reducing corruption, and providing civic education.=20
According to the Freedom House=92s Freedom of the Press 2005 survey, despit=
e=20
important gains in some countries, the overall level of press freedom=20
worldwide continued to worsen in 2004. GAO was asked to examine 1) U.S.=20
government funding for independent media development overseas; 2) the=20
extent to which U.S. agencies measure performance toward achieving results;=
=20
and 3) the challenges the United States faces in achieving results. The=20
Department of State and the U.S. Agency for International Development=20
obligated at least $40 million in fiscal year 2004 for the development of=
=20
independent media, including activities such as journalism and business=20
management training and support for legal and regulatory frameworks. About=
=20
60 percent of the fiscal year 2004 USAID and State obligations we=20
identified supported independent media development projects in Europe and=
=20
Eurasia. However, precise funding levels are difficult to identify due to a=
=20
lack of agency-wide budget codes to track media development obligations,=20
differing definitions of independent media development, and complex funding=
=20
patterns. (GAO-05-803)
[SOURCE: US Government Accountability Office]
http://www.gao.gov/cgi-bin/getrpt?GAO-05-803
Highlights: http://www.gao.gov/highlights/d05803high.pdf

CRUSADERS AT THE CPB
A decade after the Gingrich revolution, public broadcasting is again under=
=20
pressure, but this time the threat comes not primarily from Congress --=20
which recently voted down a proposal to gut the annual budget of the=20
Corporation for Public Broadcasting, an entity that provides essential=20
funding for public radio and TV stations -- but from an activist CPB board=
=20
brimming over with conservatives.
[SOURCE: The Nation, AUTHOR: Scott Sherman]
http://www.thenation.com/doc.mhtml?i=3D20050815&s=3Dsherman

QUICKLY

MORE PEOPLE TURN TO THE WEB TO WATCH TV
For two decades, media company executives and advertisers have been talking=
=20
about creating fully interactive television that would allow viewers to=20
watch exactly what they want, when they want it. It looks like that future=
=20
may well be by way of the computer, as big media and Internet companies=20
develop new Web-based video programming and advertising that is truly under=
=20
the command of the viewer. As Americans grow more comfortable watching=20
programs online, Internet programming is beginning to combine the=20
interactivity and immediacy of the Web with the alluring engagement of=20
television. Investing in new Internet video programming is a way to cash in=
=20
on the demands of advertisers who want to put their commercials on computer=
=20
screens, where new viewers are watching. And on many Web sites, viewers=20
can't skip the video commercials, the way they can when using TiVo and=20
other video recorders.
[SOURCE: New York Times, AUTHOR: Saul Hansell]
http://www.nytimes.com/2005/08/01/technology/01video.html
(requires registration)

DVD TESTS DTV CAPTIONS
TV-set makers interested in finding out how closed captioning will be=20
displayed on their digital sets can now use a new DVD test from the=20
Consumer Electronics Association (CEA). Digital TVs can decode captions=20
based on the Advanced Television Systems Committee (ATSC)=20
digital-television transport stream. The bitstreams test several=20
closed-captioning features and functions, such as various character sets,=
=20
multiple fonts within a window, language options and window commands.
[SOURCE: Broadcasting&Cable, AUTHOR: Ken Kerschbaumer]
http://www.broadcastingcable.com/article/CA630943?display=3DBreaking+New...
eferral=3DSUPP
(free access for Benton's Headlines subscribers)

DHS EXTENDS APTS-LED DIGITAL EMERGENCY ALERT PILOT
The Homeland Security Department (DHS) has extended the Association of=20
Public TV Stations (APTS)-led digital emergency alert system (DEAS) pilot=
=20
by 6 months after the =93resounding success=94 of the first phase, APTS=20
President John Lawson said. DHS and APTS signed an agreement for a DEAS=20
pilot in the D.C. area to show how public TV=92s digital infrastructure cou=
ld=20
be used to send EAS messages to the public and TVs, radios, personal=20
computers, phones and wireless networks.
[SOURCE: Communications Daily, AUTHOR: Dinesh Kumar]
(Not available online)

WITH A NEW BOOK, RADIO PROGRAM, WILLIAMS IS MAKING A COMEBACK
Nearly seven months after his controversial contracts with the federal=20
government came close to destroying his career, Armstrong Williams says the=
=20
experience has prompted him to make adjustments in his life. The former=20
press secretary for Supreme Court Justice Clarence Thomas admits he made a=
=20
huge error in accepting Department of Education contracts to promote=20
President Bush=92s No Child Left Behind initiative. Williams says that he=
=20
should have disclosed the existence of the Education Department contracts=
=20
in his weekly column. But he notes that there was a disclaimer about=20
federal funding in the television and radio spots that touted No Child Left=
=20
Behind.
[SOURCE: The Hill, AUTHOR: Bob Cusack]
http://www.thehill.com/thehill/export/TheHill/News/Frontpage/072905/will...
s.html
--------------------------------------------------------------
Way to go, Ryno!
--------------------------------------------------------------
Communications-related Headlines is a free online news summary service=20
provided by the Benton Foundation (www.benton.org). Posted Monday through=
=20
Friday, this service provides updates on important industry developments,=
=20
policy issues, and other related news events. While the summaries are=20
factually accurate, their often informal tone does not always represent the=
=20
tone of the original articles. Headlines are compiled by Kevin Taglang=20
(headlines( at )benton.org) -- we welcome your comments.
--------------------------------------------------------------

July 29, 2005

For upcoming media policy events, see http://www.benton.org/calendar.htm

FCC
Open Meeting Agenda
Short-Handed FCC's Agenda Remains Stalled

OWNERSHIP
Buyouts, Payoffs, and the Public Interest
=91Ethnic Media' Give Mainstream a Shove

RADIO/TELEVISION
FCC Could Make a Federal Case out of Payola
Less Payola, More Ella
Women Find a Voice At Iraq Radio Station
FEC Clears Rather, Sinclair Shows
Farmers Need Multiple Streams
DTV Divides Religious Flock
DTV Rollout Lags In Western Europe

MORE REACTION TO TELECOM REFORM LEGISLATION
Centrist Senate Democrats Urge Telecom Law Reform
Baller on Municipal Network Provisions in Ensign Bill
TIA Applauds Ensign Bill

FILE-SHARING
P2P Advocate Wants Roundtable Talks on File-Sharing Fate

QUICKLY -- Cellphone Marketing to Children Attacked; The Role of Grassroots=
=20
Organizers in Challenging Media Consolidation; David Brock & Media Matters=
=20
for America; Martin at NARUC; SAG Members OK Contract With Video Game=20
Makers; Did President Bush Give Media the Finger?

FCC

OPEN MEETING AGENDA
The Federal Communications Commission will hold an Open Meeting on=20
Thursday, August 4, 2005, which is scheduled to commence at 9:30 a.m. in=20
Room TW-C305, at 445 12th Street, S.W., Washington, D.C. Audio/Video=20
coverage of the meeting will be broadcast live with open captioning over=20
the Internet from the FCC's Audio/Video Events web page at=20
www.fcc.gov/realaudio. There are three items on the agenda. The Commission=
=20
will consider: 1) a Notice of Inquiry that seeks comments and information=
=20
for the Twelfth Annual Report on the status of competition in the market=20
for the delivery of video programming, 2) an Order on Reconsideration=20
concerning the Service Rules for Advanced Wireless Services in the=20
1710-1755 MHz and 2110-2155 MHz bands, and 3) a Notice of Inquiry=20
concerning the effects of anticompetitive conduct and circuit disruption by=
=20
foreign carriers on U.S.-international routes.
[SOURCE: Federal Communications Commission]
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-260318A1.doc

SHORT-HANDED FCC'S AGENDA REMAINS STALLED
The five-member Federal Communications Commission has only four spots=20
filled, leaving an even division between Republicans and Democrats and the=
=20
potential for stalemate along political lines. Chairman Kevin Martin faces=
=20
trying to set his regulatory agenda with only one other GOP ally on the=20
commission. Few believe the FCC will get a fifth member -- and Martin=20
another Republican ally -- before the fall, leaving the possibility that=20
contentious issues like media ownership will remain stalled until then.=20
"More and more the problem is that nominations at the FCC are not a high=20
priority and they're likely to get pushed even lower by nomination politics=
=20
at the Supreme Court," said Rudy Baca, a former FCC official who is an=20
analyst for the Precursor Group, an independent research firm.
[SOURCE: Associated Press, AUTHOR: Jennifer Kerr]
http://news.yahoo.com/news?tmpl=3Dstory&u=3D/ap/20050727/ap_en_bu/deadlo...
d_fcc_3

OWNERSHIP

BUYOUTS, PAYOFFS, AND THE PUBLIC INTEREST
[Commentary] The recent payola scandal becomes a springboard for a new look=
=20
of the dangers of media ownership consolidation. Sony negotiated deals with=
=20
Clear Channel, in addition to several other large station owners, in which=
=20
the record company offered kickbacks in exchange for airplay on the=20
company's national roster of stations. Sony understood that it was dealing=
=20
with companies that dominated local radio in markets across the country,=20
and in striking deals with them, it could blanket the airwaves with no=20
competition from smaller stations -- since so many had already been either=
=20
bought out or quashed by the megaliths. Moreover, in many communities=20
around the country, newspapers and TV station news outfits are teaming=20
up to work on stories and share content at a level that many may not be=20
aware of. But a problem with this kind of "cross pollination" approach is=
=20
that the more media conglomerates can combine their print and broadcast=20
operations in single markets, the easier it may be for them to nudge them=
=20
to speak with one voice, thereby lessening the impact of independent,=20
critical thought. Without the hullabaloo that accompanied Michael Powell's=
=20
attempted corporate giveaways before he left the chairmanship of the FCC --=
=20
a public outcry that led to Powell's plans being thwarted -- his successor=
=20
Kevin Martin may quietly begin rewriting media ownership rules to allow=20
corporate behemoths to own more TV stations and newspapers in single=20
markets -- thus shutting out smaller, independent voices. If he succeeds,=
=20
and this melding of editorial functions continues apace, it looks like some=
=20
markets would be fully subsumed under the watchful eye of a single company,=
=20
which would control the stories the public sees, and they way they see=20
them. If Mr. Martin has his way, America will look more and more like a=20
small town with only one voice. And the freedom to determine the course of=
=20
our political debates will rest only with those wealthy enough to own not=
=20
merely a printing press, but billions of dollars worth of broadcast=20
satellites, fiber-optic cables, and studios -- as well as a few hundred=20
printing presses. In hastening that day, the FCC will be helping to destroy=
=20
a vital lifeline of democracy.
[SOURCE: Center for American Progress, AUTHOR: Eric Alterman]
http://www.americanprogress.org/site/pp.asp?c=3DbiJRJ8OVF&b=3D932795

'ETHNIC MEDIA' GIVE MAINSTREAM A SHOVE
[Commentary] The core of the ethnic media are newspapers, radio and TV=20
stations dedicated to reaching minorities who are underserved by the=20
mainstream media. A recent poll on consumers' attraction to ethnic media=20
should wake up an industry that is still sleeping when it comes to hiring=
=20
minorities. As the ethnic media have discovered, hiring minority=20
journalists is the only way to effectively penetrate these communities =97=
=20
and ultimately command their allegiance. The findings of a poll taken in=20
April and May by the New California Media, a national association of more=
=20
than 700 ethnic media organizations, found that nearly half of U.S.=20
minorities =93prefer=94 ethnic media outlets. The poll, which surveyed 1,89=
5=20
African-American, Hispanic, Asian-American, Arab-American and=20
Native-American adults, revealed that 45% of respondents prefer ethnic=20
media to mainstream media. Subjects such as immigration and discrimination,=
=20
along with entertainment programming and advertising, are designed to=20
reflect ethnic interests. According to the poll, more than half of adults=
=20
of Chinese or Vietnamese heritage read an ethnic newspaper regularly.=20
Spanish-language radio and newspapers audiences are growing along with the=
=20
success of the Univision and Telemundo TV networks. Among blacks, radio is=
=20
the most popular ethnic medium. The clear demand in these communities,=20
wedded with an increasing fragmented and competitive media market, provides=
=20
a moment of opportunity. Recent data show how far the media have to go: 1)=
=20
The American Society of Newspaper Editors said the percentage of minority=
=20
journalists in mainstream newsrooms in 2004 was 13.42%. 2) The Radio and=20
Television News Directors Association reported that the percentage of=20
minorities in TV was 21.8% last year. That's up from 18.1% in 2003. 3) In=
=20
radio, minorities were just 11.8% of journalists in 2004, but that's a big=
=20
jump from the 6.5% in 2003.
[SOURCE: USAToday, AUTHOR:Joyce King]
http://www.usatoday.com/printedition/news/20050729/opcom29.art.htm

RADIO/TELEVISION

FCC COULD MAKE A FEDERAL CASE OUT OF PAYOLA
The FCC may do its own investigation into the payola practices uncovered by=
=20
New York Attorney General Eliot Spitzer, says a spokesman for FCC=20
Commissioner Jonathan Adelstein. Adelstein, who called for such an=20
investigation this week, is "aggressively pursuing the matter" with FCC=20
Chairman Kevin Martin, says Adelstein legal adviser Rudy Brioche. Both=20
legislation and FCC regulations make it illegal for a broadcaster not to=20
disclose considerations received in return for putting material on the air.=
=20
So if a radio station or individual received money or other items of value=
=20
in return for airplay, that could be a violation. An FCC investigation=20
would probably not involve public hearings, though it would allow for=20
public comment. The procedure would be the same as with indecency=20
complaints: If violations were uncovered, the agency would send a Notice of=
=20
Apparent Liability, with the recipient given a period of time for a respons=
e.
[SOURCE: New York Daily News, AUTHOR: David Hinckley]
http://www.nydailynews.com/entertainment/ent_radio/story/332041p-283729c...
ml

LESS PAYOLA, MORE ELLA
Thanks to New York Attorney General Eliot Spitzer, now we know one reason=
=20
why most of the music that gets played on the radio is such unchallenging=
=20
pap: record labels have been bribing radio stations and their employees to=
=20
play certain songs. There are other reasons why the music on broadcast=20
radio is so uninteresting. One is the consolidation of station ownership by=
=20
behemoths such as Clear Channel, Infinity and ABC, which leads to=20
standardization of formats and playlists. You might hear a little more=20
go-go in Washington and Baltimore, or a little more R. Kelly in Chicago,=20
but basically we get the same music from coast to coast. Another reason is=
=20
the decline of music education in the nation's public schools. The next=20
Stevie Wonder may be out there somewhere, brimming with undeveloped talent,=
=20
but he might never get the chance to learn to play the piano. Instead, he=
=20
might settle for laying down a few computer-assisted drum tracks and=20
seeking fame as a rapper, calling himself MC Blind or something like that.
[SOURCE: Washington Post, AUTHOR: Eugene Robinson]
http://www.washingtonpost.com/wp-dyn/content/article/2005/07/28/AR200507...
1789.html
(requires registration)
See also:
* The Price of Fame
Payola enriches just about everyone but musicians.
[SOURCE: New York Times, AUTHOR: Jacob Slichter]
http://www.nytimes.com/2005/07/29/opinion/29slichter.html
(requires registration)
* Broken Record
Payola has been as constant and pervasive a force as gravity for more than=
=20
a century.
[SOURCE: New York Times, AUTHOR: Cliff Doerksen]
http://www.nytimes.com/2005/07/29/opinion/29doerksen.html
(requires registration)

WOMAN FIND A VOICE AT IRAQ RADIO STATION
Radio Almahaba is Iraq's only radio station dedicated to women's issues.=20
With policymakers debating just how many legal protections women should=20
enjoy in the country's new constitution, the United Nations-funded station=
=20
finds itself on the frontlines of a bitter showdown over women's rights.=20
Several employees have been threatened with death for working at the=20
station, although no one has been attacked. Many Shiite clerics have=20
ordered their followers to boycott it. The station has responded by=20
shifting from simply covering the raging debate over Iraqi women's=20
political and legal standing to actively participating in it. At issue is=
=20
whether Iraq's new constitution should include expansive women's rights,=20
including a guaranteed 25% of the seats in Iraq's parliament, enshrined in=
=20
the temporary constitution written last year with heavy American=20
involvement. The Shiite religious parties that dominate Iraq's government=
=20
have long disapproved of those provisions and are now pushing to strip them=
=20
out. Almahaba, named after the Arabic word for love, regularly broadcasts=
=20
portions of U.N. resolutions on gender equality and encourages listeners to=
=20
make sure their interests are represented in the country's draft=20
constitution. After recording several interviews at a recent rally against=
=20
proposed cutbacks in women's rights, meanwhile, an Almahaba reporter put=20
down her microphone and began helping protest leaders pass out fliers and=
=20
petitions. The station's willingness to openly advocate its views of a=20
highly politicized issue sets it apart from many of the country's other=20
media outlets, which try to avoid picking sides for fear of sparking an=20
attack by the insurgents and sectarian militias responsible for Iraq's=20
near-daily violence. But Almahaba executives say that Iraq has too few=20
voices devoted to women's issues for them to sit out the current=20
constitutional debate, which pits secular-minded Kurds and Sunni Arabs who=
=20
want to preserve the rights accorded to women -- who make up an estimated=
=20
60% of Iraq's population -- by the country's temporary constitution,=20
against fundamentalist Shiite Arabs eager to curb women's rights and give=
=20
Islamic law greater prominence. Iraqi policymakers face a critical Aug. 15=
=20
deadline for delivering a draft constitution, but remain far apart on a=20
range of issues.
[SOURCE: Wall Street Journal, AUTHOR: Yochi J. Dreazen yochi.dreazen( at )wsj.co=
m]
http://online.wsj.com/article/0,,SB112260214586199584,00.html?mod=3Dtoda...
us_marketplace
(requires subscription)

FEC CLEARS RATHER, SINCLAIR SHOWS
The Federal Election Commission has dismissed complaints against both CBS=
=20
and Sinclair Broadcast Group for reports that cast President Bush and=20
Democratic challenger John Kerry in harsh lights. The FEC said CBS and=20
former anchorman Dan Rather could not be held liable for a discredited 60=
=20
Minutes report questioning whether the President fulfilled his National=20
Guard obligations. The FEC found Sinclair's airing of excerpts from Stolen=
=20
Honor, a documentary criticizing 2004 presidential candidate John Kerry's=
=20
military service in Vietnam and his subsequent anti-war activities, did not=
=20
violate federal election laws because the broadcast was protected by the=20
government's exemption of news shows from campaign finance restrictions.=20
The FEC also dismissed a complaint filed by an individual in Cedar Rapids,=
=20
Iowa, about anti-Kerry editorials by Sinclair commentator Mark Hyman.=20
Sinclair said it was "pleased" by the rulings.
[SOURCE: Broadcasting&Cable, AUTHOR: Bill McConnell]
http://www.broadcastingcable.com/article/CA630787?display=3DBreaking+New...
eferral=3DSUPP
(free access for Benton's Headlines subscribers)

FARMERS WANT MULTIPLE STREAMS
Larry Mitchell, CEO of the American Corn Growers Association, is part of a=
=20
group calling itself the Coalition for a Smart Digital TV Transition, with=
=20
"smart" implying the mandatory cable carriage of all a broadcaster's=20
multiple digital TV channels and aiding rural viewers in the transition.=20
The group includes unions, minority advocates, and the affiliate groups of=
=20
three of the Big Four (ABC is not a member). Farmers care about the digital=
=20
transition because they depend on the sort of hyper-local weather and=20
market information broadcasters are promising with some of their digital=20
multicast channels.
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
http://www.broadcastingcable.com/article/CA630644?display=3DBreaking+New...
eferral=3DSUPP
(free access for Benton's Headlines subscribers)

DTV DIVIDED RELIGIOUS FLOCK
Charlotte, N.C.-based Inspiration Networks was in Washington this week=20
lobbying hard against requiring cable to carry all of a broadcaster's=20
multicast digital channels. Although the network is a member of the=20
National Religious Broadcasters (NRB), it does not support that group's=20
endorsement of multi-cast must-carry.
NRB is primarily made up of religious broadcast stations, which are afraid=
=20
cable will not carry them unless the government requires it. Smaller cable=
=20
nets, on the other hand, fear that mandatory carriage of all those=20
broadcast signals could bump them off cable lineups.
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
http://www.broadcastingcable.com/article/CA630701?display=3DBreaking+New...
eferral=3DSUPP
(free access for Benton's Headlines subscribers)

DTV ROLLOUT LAGS IN WESTERN EUROPE
A report released Thursday says Western European countries are expected to=
=20
miss their deadlines for analog TV shutoff, a key component of the digital=
=20
television transition, by as much as 15 years. The report cited a slow=20
rollout of digital television and resistance from consumers for the delay.
[SOURCE: Broadcasting&Cable, AUTHOR: Joel Meyer]
http://www.broadcastingcable.com/article/CA630724?display=3DBreaking+New...
eferral=3DSUPP
(free access for Benton's Headlines subscribers)

MORE REACTION TO TELECOM REFORM LEGISLATION

CENTRIST SENATE DEMOCRATS URGE TELECOM LAW REFORM
In a Tuesday letter to the chairman and senior Democrat of the Senate=20
Commerce Committee, the group Third Way said that "telecom policy is not=20
and should not be a partisan issue. Congress should adopt thoughtful,=20
bipartisan reforms that can spur the U.S. economy and provide economic=20
opportunity and jobs for all." The letter said that the 1996 act "assumed a=
=20
world that soon ceased to exist. Any future reform must be flexible enough=
=20
to encompass global changes to the systems we use for communications,=20
information and entertainment." The letter was signed by six of the seven=
=20
Democrats who are members of the group: Evan Bayh of Indiana, Tom Carper of=
=20
Delaware, Mary Landrieu of Louisiana, Joseph Lieberman of Connecticut,=20
Blanche Lincoln of Arkansas and Ken Salazar of Colorado. The group, which=
=20
was incorporated in December, calls itself a "strategy center."
[SOURCE: Technology Daily, AUTHOR: Drew Clark]
http://www.njtelecomupdate.com/lenya/telco/live/tb-VHEB1122581915648.html

JIM BALLER ON MUNICIPAL NETWORK PROVISIONS IN ENSIGN BILL
In the floor statement accompanying his bill, Senator Ensign said that the=
=20
bill=92s municipal networks provision is not extreme and is intended to=20
encourage public investment in communities in which =93the private sector=
=20
does not show up and offer to build.=94 Unfortunately, the provision itself=
=20
undermines Senator Ensign=92s goals. The provision rests on numerous false=
=20
assumptions. The procedures set forth in the bill are unnecessary,=20
unworkable and counterproductive. The municipal networks provision of the=
=20
Ensign bill would also create a host of disincentives and unintended=20
consequences. In short, the provision falls far short of the fair and=20
balanced approach that Senators Lautenberg and McCain have proposed in S. 1=
294.
[SOURCE: Baller Herbst Law Group]
http://www.baller.com/pdfs/Baller_Response_Sen_Ensign.pdf

TIA APPLAUDS ENSIGN BILL
TIA applauds Senator Ensign for once again demonstrating his leadership on=
=20
telecom and high-tech policy. He should be commended for striving to update=
=20
the nation=92s telecom laws to better reflect the realities of today=92s hi=
ghly=20
competitive, dynamic and converging industry. As the information and=20
communications technology industry continues to rapidly evolve, TIA=20
especially supports the goal of establishing a firm foundation that is=20
forward-looking in encouraging competition, investment, innovation and the=
=20
deployment of next-generation technologies across all segments of the=20
industry. We look forward to examining the proposed legislation in detail=
=20
and commit to working with Senator Ensign and all of his colleagues in both=
=20
chambers of Congress to ensure any final telecom reform legislation that=20
emerges is built on these principles and establishes a national framework=
=20
of limited regulatory oversight of the competitive and converging broadband=
=20
communications marketplace. Such a result is critically important for the=
=20
industry, consumers and the nation=92s economy.
[SOURCE: Telecommunications Industry Association]
http://www.tiaonline.org/media/press_releases/index.cfm?parelease=3D05-45

FILE-SHARING

P2P ADVOCATE WANTS ROUNDTABLE TALKS ON FILE-SHARING FATE
The Senate Commerce Committee started Thurs. what some expect to be a=20
complex copyright battle over peer-to-peer (P2P) networks. The committee=20
convened a panel of the heads of the music and movie industries, one of the=
=20
file-sharing sector=92s most determined devotees, an ISP executive and the=
=20
CEO of an up-and-coming licensed P2P firm. The hearing was an expected=20
result of the Supreme Court=92s MGM v. Grokster decision last month, which=
=20
determined that file-sharing companies can be liable for users=92 sharing=
=20
copyrighted files. During the hearing, Commerce Chairman Stevens (R-Alaska)=
=20
had strong words for the P2P industry. =93We are going to be watching. We=
=20
want to know what you are going to do to follow up on this [court decision]=
=20
to give greater protection to this copyrighted material,=94 he said: =93I d=
on't=20
hear much myself that indicates that there'll be any attempt at finding=20
ways to set standards and bring into new generations a concept that we=20
don't condone stealing property.=94 Some lawmakers are eager for the Senate=
=20
to =93move now=94 but Sen Stevens said his committee wants to proceed sensi=
bly=20
and figure out what might be done to =93terminate this illegal activity.=94
[SOURCE: Communications Daily, AUTHOR: Andrew Noyes]
(Not available online)
* Congress threatens P2P networks on porn
Congress remains reluctant to rewrite copyright law in the wake of the U.S.=
=20
Supreme Court's landmark decision on file-swapping--but Internet=20
pornography on peer-to-peer networks is likely to be a legislative target=
=20
this fall.
http://news.com.com/Congress+threatens+P2P+networks+on+porn/2100-1028_3-...
9223.html?tag=3Dnefd.top
* Senators Hammer File-Sharing Nets
http://www.broadcastingcable.com/article/CA630786?display=3DBreaking+New...
eferral=3DSUPP
(free access for Benton's Headlines subscribers)
For more on the hearing, see=20
http://commerce.senate.gov/hearings/witnesslist.cfm?id=3D1594

QUICKLY

CELLPHONE MARKETING TO CHILDREN ATTACKED
Some 30 health, education and privacy advocates, led by the Ralph Nader=20
group Commercial Alert, are demanding Congress regulate mobile phones=20
marketed to children. A letter to members of the Senate and House Commerce=
=20
Committees said the telecommunications industry is targeting young children=
=20
as its next growth market, a move called "one of the worst ideas to appear=
=20
in the American economy in a long time." Even though cell phones for=20
children are marketed as a tool for children to contact parents in an=20
emergency, in reality the phones allow advertisers of all kinds to better=
=20
market to children, the letter said.
[SOURCE: AdAge, AUTHOR: Alice Z. Cuneo]
http://adage.com/news.cms?newsId=3D45651

THE ROLE OF GRASSROOTS ORGANIZERS IN CHALLENGING MEDIA CONSOLIDATION
A seven minute video which features YMC, Media Alliance, Code Pink, Media=
=20
Tank, Prometheus Radio Project and many other media activists from all over=
=20
the U.S..
[SOURCE: Youth Media Council]
http://www.youthmediacouncil.org/news.html

REDEMPTION TALE
A look at former conservative David Brock, the man behind media critic=20
Media Matters for America.
[SOURCE: The Boston Phoenix, AUTHOR: Mark Jurkowitz]
http://www.bostonphoenix.com/boston/news_features/dont_quote_me/multi-pa...
documents/04855838.asp

REMARKS BY FCC CHAIRMAN MARTIN TO NARUC SUMMER MEETING
Speech covered earlier this week is now online.
[SOURCE: Federal Communications Commission]
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-260312A1.pdf

SAG MEMBERS OK CONTRACT WITH VIDEO GAME MAKERS
Actors who voice video games voted overwhelmingly Thursday to approve a new=
=20
contract with game makers. More than 81% of the nearly 1,500 Screen Actors=
=20
Guild members who voted approved the pact, which calls for a 36% rise in=20
minimum pay over 3 1/2 years. Affected are about 2,000 performers who voice=
=20
characters in games. The new contract will go into effect today and run=20
through 2008. Pay levels will rise over the life of the contract from $556=
=20
per four-hour session to $759. SAG negotiators also had sought residual=20
payments for top-selling games. But the companies, including Electronic=20
Arts and Activision, refused to budge.
[SOURCE: Los Angeles Times, AUTHOR: James Bates]
http://www.latimes.com/business/printedition/la-fi-sag29jul29,1,2672332....
ry?coll=3Dla-headlines-pe-business
(requires registration)

TRYING TO PUT A FINGER ON A PRESIDENTIAL GESTURE
Did President Bush show what he really thinks of the media with a flip of=
=20
his middle finger? Jay Leno thinks so. On "The Tonight Show" Wednesday, the=
=20
late-night comic showed videotape of the president leaving a meeting with=
=20
congressional Republicans on Capitol Hill earlier in the day and passing by=
=20
a clutch of reporters shouting questions on the fate of the Central=20
American trade pact. On the video, Bush striding away from the camera=20
suddenly thrusts his right hand into the air and extends a finger --=20
precisely which one was unclear. White House officials yesterday said it=20
was his...um, er... thumb. Yes, yes, let's insist it was his thumb.
[SOURCE: Washington Post, AUTHOR: Peter Baker]
http://www.washingtonpost.com/wp-dyn/content/article/2005/07/28/AR200507...
1906.html
(requires registration)
--------------------------------------------------------------
...and we're outta here. Have a great weekend and GO CUBS!
--------------------------------------------------------------
Communications-related Headlines is a free online news summary service=20
provided by the Benton Foundation (www.benton.org). Posted Monday through=
=20
Friday, this service provides updates on important industry developments,=
=20
policy issues, and other related news events. While the summaries are=20
factually accurate, their often informal tone does not always represent the=
=20
tone of the original articles. Headlines are compiled by Kevin Taglang=20
(headlines( at )benton.org) -- we welcome your comments.
--------------------------------------------------------------