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Large telephone companies gather today to ask -- what's in it for us in the
re-write of the nation's telecom laws. For upcoming media policy events,
see http://www.benton.org/calendar.htm

POLICYMAKERS
Bush's High-Tech Report Card
FCC Chief Pushes for Easing Rules on DSL Broadband
Broadband Consumer Choice Act
Rumors Suggest Meece, Tate as FCC Commissioners
Martin at NARUC
FCC May Consolidate Oversight Of Wireless Issues

CONTENT
Paid Product Placement Surges in Magazines, Newspapers, Other Media
Broadcasters, News Directors Defend Use of Video News Releases
Playola
FCC May Consolidate Oversight of Wireless Issues
The FAIR Ratings Act
Hillary vs. the Xbox: Game over

CABLE
Commercial Broadcasters Want a Free Ride at Everyone Else's Expense
McSlarrow Rips Bells' Hill Tactics
Comcast Mulls Sports Network to Rival ESPN
Telling the FCC about Comcast/TimeWarner/Adelphia

TELEPHONY
Lifeline Across America
Internet Phone Providers Given More Time on 911

QUICKLY -- What's the Matter with Indymedia?; Embracing the Future; Visit
the Past; Lawyers' Delight: Old Web Material Doesn't Disappear

POLICYMAKERS

BUSH'S HIGH-TECH REPORT CARD
Six months into his second term, some executives in Silicon Valley question
whether President Bush and key members of his administration really do "get
it" when it comes to high tech. They complain -- usually privately -- about
a lack of accomplishment on some major policy issues and a broader lack of
focus on what they consider a unique sector of the U.S. economy.
Increasingly, high-tech executives are turning to Congress to try to
address their needs. The Administration is criticized on a number of
industry priorities: 1) Failing to take more aggressive steps to expand
access to high-speed Internet services, allowing the United States to fall
from fourth in the world in broadband penetration in 2001 to 12th last
year, according to one leading gauge; 2) Not putting more money into basic
federal research at the National Science Foundation for engineering and
physics in the face of increased foreign competition; and most
disheartening to even strong Bush supporters, 3) new regulatory accounting
rules for stock options that many Silicon Valley companies adamantly oppose.
[SOURCE: Mercury News, AUTHOR: Jim Puzzanghera]
http://www.siliconvalley.com/mld/siliconvalley/12217418.htm

FCC CHIEF PUSHES FOR EASING RULES ON DSL BROADBAND
FCC Chairman Kevin Martin said he has circulated a proposal that would
treat digital subscriber line (DSL) broadband as an information service. If
approved, that would exempt it from most traditional telephone rules, such
as requirements to lease network access to competitors. Chairman Martin
said he has already "shared with my colleagues" a proposal that will give
telephone carriers the same regulatory framework as other providers. He
added, "The lack of regulatory parity between telecoms and cable is
inhibiting broadband growth."
[SOURCE: Reuters]
http://today.reuters.com/news/newsArticle.aspx?type=internetNews&storyID...

BROADBAND CONSUMER CHOICE ACT
There's a buzz in Washington as Sen. Ensign (R-NV) said he will introduce a
comprehensive telecom bill, "Broadband Consumer Choice Act of 2005," today
that will include provisions on video franchising plus other elements
designed to boost competition within the industry. The bill is expected to
eliminate franchises for all local video
competitors -- in addition to "rewriting outdated telecom laws" (which is
the exact phrasing that can send shivers down the spines of public interest
advocates).
[SOURCE: Communications Daily]
(Not available online)

RUMORS SUGGEST MEECE, TATE AS FCC COMMISSIONERS
More DC telecom buzz... President Bush may name his nominees for two open
FCC seats by the end of this week. There are two rumored front runners: 1)
Mike Meece, a special assistant to the President and deputy director of
public liaison with a specialty in telecom and media issues. He was deputy
chief of staff to then-Commerce Sec Donald Evans. In his current role,
Meece represents the President on business issues in his area of expertise.
He deals closely with a variety of companies and business groups, speaking
and appearing at conferences. 2) Deborah Taylor was appointed in July 2002
to a 6-year term as director of the Tennessee Regulatory Authority. In
2003, then-FCC Chairman Michael Powell named her to the FCC's federal-state
joint conference on advanced telecom services. In 2005, she became Chairman
of NARUC's Washington Action Committee. She also serves on NARUC's
triennial review implementation task force and the consumer affairs and gas
committees. But don't ink there names in as FCC commissioners... there's
more names on a short list that includes Washington consultant Janice
Obuchowski, Richard Russell, associate dir. with the White House Office of
Science and Technology Policy (OSTP) and Suzie Terrell, a lawyer based in
New Orleans.
[SOURCE: Communications Daily, AUTHOR: Anne Veigle]
(Not available online)
See Taylor Tate's bio at:
http://www.state.tn.us/tra/tate/tatefullbio.htm
* FCC Vacancies Have Bevy Of Contenders
http://www.njtelecomupdate.com/lenya/telco/live/tb-QSRB1122409192514.html
* White House aide said to be top FCC contender
http://today.reuters.com/news/newsArticle.aspx?type=politicsNews&storyID...

MARTIN AT NARUC
FCC Chairman Kevin Martin spoke at the summer meeting of the National
Association of Regulatory Utility Commissioners on Tuesday. He said an
effective federal-state partnership in implementing public policy may mean
giving states more decision-making power. "The states have a larger role to
play than just being an enforcer," Chairman Martin said. "The FCC could
give states more flexibility to implement policy," as was done successfully
in some states with numbering administration. "But we in government must
ensure that the regulatory environment we create doesn't get in the way of
market forces. And our blueprints for change should also allow new
technologies to flourish." Martin, in his first address to NARUC since
becoming the FCC's head, said intermodal competition and new technologies
are eroding legacy universal service and intercarrier compensation regimes,
while regulatory uncertainties are slowing broadband deployment. Addressing
these breakdowns, he said, will require flexible federal and state policies
that are technology-neutral and apply evenly to all providers of particular
services. To reform universal service support, Martin said he still likes
the idea of basing universal service contributions on phone numbers, not
revenues, because this method is easy to administer and is within existing
FCC authority. He said it would apply to any service that uses phone
numbers, regardless of technology, would be easy for carriers and consumers
to understand, and would promote number conservation.
[SOURCE: Communications Daily]
(Not available online)

FCC MAY CONSOLIDATE OVERSIGHT OF WIRELESS ISSUES
Telecommunications industry officials are reacting favorably to reports
about a tentative reorganization of the FCC contemplated by agency Chairman
Kevin Martin. He is contemplating abolishing the Wireless
Telecommunications Bureau and splitting its functions into the existing
Wireline Competition Bureau and a new spectrum bureau or office. Martin
also is contemplating the creation of a homeland security division or
bureau that would centralize the functions pertaining to emergency
responders, whether through wireless or wire-based communications.
[SOURCE: Technology Daily, AUTHOR: Drew Clark]
http://www.njtelecomupdate.com/lenya/telco/live/tb-ZGEW1122408903073.html

CONTENT

PAID PRODUCT PLACEMENT SURGES IN MAGAZINES, NEWSPAPERS, OTHER MEDIA
A new report to be released today shows product placement is a much bigger
deal that has influenced virtually all forms of media, even supposedly
sacrosanct print outlets such as newspapers and magazines where paid
placements are that fastest growing segment of the business. Although
highly controversial, the total value of product placements in magazines is
on pace to grow 17.5 percent in 2005 to $160.9 million, and product
placements in newspapers is projected to rise 16.9 percent to $65.0
million, estimates PQ Media. While TV and films account for 90 percent of
all product placements, PQ estimates other media account for 18.1 percent,
or $384.9 million. The report reveals that product placement is influencing
every segments of media, including print, videogames, online, books and
even radio and recorded music. In fact, just about the only medium not
tracked in the report is outdoor and place-based media, which appear to
offer the ultimate panacea for the main factors driving product placement
deals: clutter, media multitasking and ad-skipping.
[SOURCE: Media Post, AUTHOR: Joe Mandese]
http://publications.mediapost.com/index.cfm?fuseaction=Articles.showArti...

BROADCASTERS, NEWS DIRECTORS DEFEND USE OF VIDEO NEWS RELEASES
In comments filed at the FCC, the National Association of Broadcasters
argued that more regulation of video news releases (VNRs) is not warranted
and could raise constitutional concerns. Use of VNRs does not violates
Commission rules on sponsorship identification, the NAB said. Those rules
require that when payment is received
by or promised to a broadcast licensee for airing material, the station
must disclose that fact at the time of airing and identify who made the
payment. But the Center for Media Democracy and Free Press called for
further disclosure of sources of material aired, including a frame-by-frame
visual notification of sources. The Radio-Television News Directors
Association countered saying such a requirement would burden broadcasters
and cable operators. The added requirements also would violate First
Amendment rights by dictating how VNRs are used. "In our democratic
society, it is axiomatic that decisions concerning how to contextualize a
story, inform the audience, or otherwise present news programming be left
to journalists, not dictated by the government" RTNDA said.
[SOURCE: Communications Daily]
(Not available online)

PLAYOLA
[Commentary] Perhaps the question is this: If you were a disc jockey or a
radio station manager, would the chance to play blackjack with Celine Dion
in Las Vegas induce you to put her single "I Drove All Night" on the air
more often? No one supposes that radio playlists are the results of pure
popularity or artistic merit -- not since the payola scandals of the late
1950's and early 60's. The radio map has changed entirely since then. It
has seen the near-demise of local stations, the rise of powerful national
networks like Clear Channel, the splintering of audiences and the
appearance of satellite radio. The radio spectrum at the moment includes
everything from ironclad rotations for mass markets to an untested merger
of radio and the Internet called podcasting. To the extent that they offer
payola, record companies will offer it only to the largest of these
outlets. As Eliot Spitzer, New York's attorney general, continues his
investigation, he would do well to look at those who are doing the taking
as well as those who are doing the bribing.
[SOURCE: New York Times, AUTHOR: Editorial Staff]
http://www.nytimes.com/2005/07/27/opinion/27wed4.html
(requires registration)
* Clear Channel Vows "Swift And Appropriate Disciplinary Action"
http://www.fmqb.com/Article.asp?id=103257

THE FAIR RATINGS ACT
There's a Senate Commerce Committee hearing this afternoon on the
"Fairness, Accuracy, Inclusivity, and Responsiveness in Ratings Act of
2005." Opponents are lining up against the legislation (see links below).
You can watch the hearing by checking out
http://commerce.senate.gov/hearings/witnesslist.cfm?id=1592 and you can
find the text of the bill on Thomas
http://frwebgate.access.gpo.gov/cgi-bin/getdoc.cgi?dbname=109_cong_bills...
[SOURCE: Senate Commerce Committee]
* More Groups Rip Burns Bill
http://www.multichannel.com/article/CA629555.html?display=Breaking+News
* More Groups Cry Foul Over FAIR Act
http://www.broadcastingcable.com/article/CA629510?display=Breaking+News&...
(free access for Benton's Headlines subscribers)
* Association of National Advertisers Opposes Ratings Bill
http://www.broadcastingcable.com/article/CA629494?display=Breaking+News&...
(free access for Benton's Headlines subscribers)
* Collins: No Minorities at MRC Hearing?
http://www.multichannel.com/article/CA629376.html?display=Breaking+News
* Collins Dismayed At "Colorless" Witness List
http://www.broadcastingcable.com/article/CA629354?display=Breaking+News&...
(free access for Benton's Headlines subscribers)
* CBS Exec Pushes Strong MRC
http://www.broadcastingcable.com/article/CA629562?display=Breaking+News&...
(free access for Benton's Headlines subscribers)

HILLARY VS THE XBOX: GAME OVER
[Commentary] The author of "Everything Bad Is Good For You: How Today's
Popular Culture Is Actually Making Us Smarter" suggests that Sen Hillary
Clinton's proposed $90-million study on the effects of video games on
children be expanded to include another game whose nonstop violence and
hostility has captured the attention of millions of kids -- a game that
instills aggressive thoughts in the minds of its players, some of whom have
gone on to commit real-world acts of violence and sexual assault after
playing: high school football. In defense of video games Johnson writes,
"The great secret of today's video games that has been lost in the moral
panic over "Grand Theft Auto" is how difficult the games have become. That
difficulty is not merely a question of hand-eye coordination; most of
today's games force kids to learn complex rule systems, master challenging
new interfaces, follow dozens of shifting variables in real time and
prioritize between multiple objectives. In short, precisely the sorts of
skills that they're going to need in the digital workplace of tomorrow."
[SOURCE: Los Angeles Times, AUTHOR: Steven Johnson]
http://www.latimes.com/news/printedition/opinion/la-oe-johnson27jul27,1,...
(requires registration)

CABLE

COMMERCIAL BROADCASTERS WANT A FREE RIDE AT EVERYONE ELSE'S EXPENSE
NCTA released a new paper Tuesday for anyone making weekend reading plans.
It serves as a rebuttal to National Association of Broadcaster claims about
must carry. 1) NAB asserts that the burden imposed on a cable system's
capacity by a multicast must carry rule is no more than that already
required under current law. 2) NAB alleges that cable operators are
"stripping" additional multicast programming services from the signals
carried on their systems, thus "depriving millions of Americans one of
the key benefits of the DTV transition." 3) NAB alleges that if
broadcasters are unable to obtain cable carriage for their multicast
signals, consumers will be penalized and deprived of local over-the-air
programming options. Conversely, they argue: if broadcasters receive the
assurance of carriage and fully develop their multicast services, consumers
will have another incentive to purchase DTV sets which will, in turn,
accelerate the transition. 4) NAB asserts that multicasting will enhance
viewers' programming options and encourage broadcasters to create
innovative new local content. 5) NAB asserts that consumers who have
digital TVs will receive little more "from their cable company than a
signal that has been turned back into analog format."
NCTA claims that both multicast and dual must carry are likely to be found
unconstitutional. The group concludes: "If Congress decides that the analog
spectrum needs to be returned before most television viewers are equipped
to receive digital signals, it can ensure that the transition to DTV
continues without unnecessary disruptions or additional costs. Cable
operators should be given the flexibility to carry down-converted signals
in lieu of digital signals and should retain the discretion to carry both
the down-converted and digital versions of those signals. Moreover, forcing
cable to carry multiple streams of duplicative broadcast programming,
regardless of its value to consumers, is not in the public interest and
will not speed the transition to digital television. Congress should reject
the broadcasters' attempts to insert multicast must carry provisions in
pending DTV legislation."
[SOURCE: National Cable & Telecommunications Association]
http://www.ncta.com/press/press.cfm?PRid=614&showArticles=ok

MCSLARROW RIPS BELLS' HILL TACTICS
Bad Bells. Bad, bad, bad. Complaining that telephone companies are
"cherry-picking to their hearts' content," National Cable &
Telecommunications Association President Kyle McSlarrow argued that telcos
looking to obtain cable franchises in order to compete with cable operators
should have to adhere to the same rules that govern cable operators. "The
question is: What are the rules of the road? Are the rules going to be what
cable has lived under for years, or are we just going to turn on a dime and
provide a different set of rules for different players?" McSlarrow
rhetorically asked. He went on to say that the Bells don't typically play
by anyone else's rules and they aren't asking for cable-like rules on
Capitol Hill, adding, "These are tough competitors. They're going to change
the rules if they don't like them. They're going to squash competitors."
[SOURCE: Multichannel News, AUTHOR: Steve Donohue]
http://www.multichannel.com/article/CA629511.html?display=Breaking+News
(requires subscription)

COMCAST MULLS SPORTS NETWORK TO RIVAL ESPN
Cable-television giant Comcast Corp. failed last year in an attempt to buy
Walt Disney Co. and its ever-burgeoning ESPN sports network. Now, the
Philadelphia-based company is exploring the possibility of mounting a
challenge to ESPN, the undisputed leader in TV sports programming. People
familiar with the company's plans say Comcast is interested in recasting
its quirky and low-rated Outdoor Life Network. While best known for its
coverage of Lance Armstrong's annual victory at the Tour de France, it is
also the home of professional bull riding, bear hunting and competitive
barbeque. But transforming the network to an ESPN-style contender would
require a major team sport, and people with knowledge of Comcast's plans
say the company is in serious negotiations with the National Football
League and National Hockey League, and also has its eye on Nascar auto
racing. ESPN already carries the NFL, as well as Major League Baseball, the
National Basketball Association, and virtually every other major college
and professional sport. The channel generates about $1 billion in cash flow
for parent Disney, according to industry research firm Kagan World Media.
Besides ESPN, there are five sister cable channels, a magazine and a
restaurant chain. Comcast does have significant resources. It is the
nation's biggest cable operator with more than 21 million subscribers, and
it posted revenue of $20.3 billion last year. Comcast already owns four
regional sports channels and it has a majority ownership of the
Philadelphia Flyers of the NHL and Philadelphia 76ers of the NBA.
[SOURCE: Wall Street Journal, AUTHOR: Joe Flint joe.flint( at )wsj.com and
Stefan Fatsis stefan.fatsis( at )wsj.com]
http://online.wsj.com/article/0,,SB112243020602197021,00.html?mod=todays...
(requires subscription)

TELLING THE FCC ABOUT COMCAST/TIME WARNER/ADELPHIA
Free Press has created an easy, online system for filing comments in the
Comcast/TimeWarner/Adelphia proceeding at the FCC. Just visit the URL below.
[SOURCE: Free Press]
http://www.freepress.net/fcc/comment.php?d=92-264

TELEPHONY

LIFELINE ACROSS AMERICA
The Federal Communications Commission (FCC) and the National Association of
Regulatory Commissioners (NARUC) have joined hands to launch "Lifeline
Across America," a nationwide program to draw more low-income consumers
into federal and state Lifeline and Link-up programs. These programs
provide for discounts to low income households for both the initial
installation of phone service (Link-Up) and monthly phone bills (Lifeline.)
The "Lifeline Across America" initiative includes: 1) A Best Practices
Working Group that will develop guidelines to help carriers target
consumers who are eligible for participation in the Lifeline and Link-up
programs. The working group is comprised of representatives from the FCC
and NARUC, and will include input from state and local government entities,
industry, tribes and consumer groups; 2) Joint Outreach Materials in
English and Spanish that will be distributed and available to targeted
audiences, including: consumer-friendly fact sheets, an eligibility
checklist, as well as other publications and marketing materials; 3) FCC
and NARUC Web Site Enhancements that will highlight the Lifeline and
Link-up programs and provide information in a consumer-friendly and
informative manner; and 4) Train-the-Trainer Program to educate state and
local government stakeholders about Lifeline and Link-up eligibility
requirements and procedures. Such program may be web-based to maximize
cost efficiencies. The FCC and NARUC will partner with relevant state and
local government entities, industry, tribes and consumer groups to
facilitate the training effort.
[SOURCE: Federal Communications Commission]
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-260129A1.doc

INTERNET PHONE PROVIDERS GIVEN MORE TIME ON 911
Concerned by several high-profile incidents where people had difficulty
reaching emergency dispatchers, the Federal Communications Commission had
asked Internet telephone companies to obtain customer acknowledgments of
the limitations of the service by July 29. But to accommodate carrier
complaints that they could not meet that deadline, the FCC issued a notice
on Tuesday giving them until Aug. 10 to file a report detailing their
efforts to get such acknowledgments .
[SOURCE: Reuters, AUTHOR: Jeremy Pelofsky]
http://today.reuters.com/news/newsArticle.aspx?type=internetNews&storyID...
* FCC Public Notice
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DA-05-2085A1.doc

QUICKLY

WHAT'S THE MATTER WITH INDYMEDIA?
[Commentary] Conceived initially to allow everybody to 'be the media,'
Indymedia is plagued by everything from fascist messages to paralyzing
ideology to good old fashioned laziness.
[SOURCE: AlterNet, AUTHOR: Jennifer Whitney]
http://www.alternet.org/mediaculture/23741/

EMBRACE THE FUTURE
What does the newspaper industry need to do to survive? Simplify rate cards
to make it easier for businesses to advertise; invest in technology that
can deliver information to consumers in new ways; give consumers the power
to decide what information is of value to them; expand market share in
addition to protecting existing turf; and innovate, innovate, innovate.
Thoughts from the Newspaper Association of America's Future of Newspapers
Conference
[SOURCE: Presstime, AUTHOR: Jeff Lemberg]
http://www.naa.org/Presstime/PTArtPage.cfm?AID=7119

LAWYERS' DELIGHT: OLD WEB MATERIAL DOESN'T DISAPPEAR
The Web, seemingly one of the most ephemeral of media, is instead starting
to leave permanent records. Through the Wayback Machine, and similar
services offered by companies such as Google Inc., it's now easy to
retrieve all kinds of online material, from defunct Web pages to old
versions of sites. While these databases have caught on among historians
and scholars, they are proving particularly enticing for lawyers. At some
law firms, litigators now ask researchers, "can you do a Wayback on that?"
The archives are most attractive to specialists in intellectual-property
law -- in particular, areas such as domain-name battles.
[SOURCE: Wall Street Journal, AUTHOR: David Kesmodel david.kesmodel( at )wsj.com]
http://online.wsj.com/article/0,,SB112242983960797010,00.html?mod=todays...
(requires subscription)
--------------------------------------------------------------
Way to go, Mad Dog! 3,001 and counting....
--------------------------------------------------------------
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.
--------------------------------------------------------------

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

LEGISLATION
Telecom Bill Passage Said Unlikely This Year

MEDIA OWNERSHIP
Television and Radio Artists Discuss Media Consolidation
Is Comcast Too Big?
Groups Call for Adelphia Conditions

BROADCASTING
Newspapers and TV Stations Try Cross-Pollination
Satellite Radio's New Local Content Riles Broadcasters
A Spanish-TV Upstart Nips at Heels of No. 2 Telemundo
Sony BMG to Pay Fine In Settlement of Airplay Probe

TELECOM
FCC Eyes Recasting DSL as Information Service
Chip Start-Ups Battle to Provide Network Flexibility for Cellphones

QUICKLY -- Scrubbing the Airwaves; White House Warming to CBS; Why is it so
Hard to Cover the Supreme Court?; American Make DTVs, CEA Tells Senate;
Digital TV and E-Waste; Television Advertising Vs. Radio Advertising; NARUC
Considers Telecom Resolutions; Bush creates new post to fight global
piracy; Online News Consumers Become Own Editors; The hunt is on for
ed-tech visionaries; France Telecom Nears Purchase Of Spanish Wireless
Operator; Hong Kong to issue unified broadband licenses

LEGISLATION

TELECOM BILL PASSAGE SAID UNLIKELY THIS YEAR
U.S. lawmakers have been promising to begin overhauling the nation's
telecommunications laws to keep up with advancing technologies, but
analysts say the odds of passing a bill this year are slim. Although there
were predictions that legislation would be completed in the House by
August, only the first public drafts of reform bills are expected to be
unveiled this week. Telephone companies such as Verizon Communications and
SBC Communications are pushing Congress to ease regulations so they can
quickly deploy high-speed Internet services such as video, voice and data.
Lawmakers may also consider curbing some states' oversight of the industry
and are likely to consider revamping the program that offers subsidies for
telephone service to low-income homes and rural areas. Yet, higher on the
priority list for Congress is a bill to finish the transition to digital
television airwaves. The old analog airwaves will be sold for wireless
services and could bring billions to plug the federal budget deficit.
[SOURCE: Reuters]
http://www.latimes.com/business/printedition/la-fi-preview25jul25,1,2998...
(requires registration)

MEDIA OWNERSHIP

TELEVISION AND RADIO ARTISTS DISCUSS MEDIA CONSOLIDATION
The 60th Convention of the American Federation of Television and Radio
Artists was held in Los Angeles last week. Keynote speaker FCC Commissioner
Michael J. Copps addressed the conference Friday morning, emphasizing the
need to prevent media consolidation and vertical integration between a
handful of powerful media companies. He called the FCC's June 2003 ruling
to relax restrictions on media ownership a "spectacular failure" and agreed
with the federal appeals court in Philadelphia, which rejected the new
regulations, and the Supreme Court, which refused to hear an appeal by the
media companies involved in the Philadelphia decision. Copps promised to
unveil a new process the FCC will use to interact with Congress and the
public "in a month or two." He called upon AFTRA to help the FCC understand
the effects of media consolidation on the entertainment industry. When
asked how the FCC's stronger policy against moral indecency in the media
may affect actors, he said "Our job is not to go after performers. But we
deal with broadcast licensing. It's their responsibility to deal with their
performers in a mutually satisfactory fashion." Actor and AFTRA delegate
Morgan Fairchild, who is also active on several SAG boards, spoke on media
consolidation from an actor's perspective before Thursday's voting session.
"Everything seems to come down to the same five or six companies now," she
said. "It's a very different economic culture that we're in. There seem to
be lists of people that they will hire, and if you're not on that list --
whether you're a writer, producer, or actor -- you don't get hired. It
marginalizes a lot of people, especially older people, people trying to get
started, and middle-class actors trying to make a living." Fairchild
encouraged actors to participate more in the unions and emphasized the need
for unity among AFTRA, Screen Actors Guild, and Actors' Equity Association.
She also commented on another point Copps made regarding the need to stay
on top of emerging media that could employ actors. "As soon as you start to
deal with one technology, there's another one emerging," she said. "There
are all of these different ways that we as performers can be used to a good
advantage but also possibly not paid for that work." AFTRA recently
accepted a controversial contract with Electronic Arts, Activision, and
other videogame companies, which calls for a 36 percent wage increase. SAG,
however, rejected the contract on the grounds that it does not allow
residual payments for voiceover and other performers.
[SOURCE: Backstage.com, AUTHOR: Lauren Horwitch]
http://www.backstage.com/backstage/news/article_display.jsp?vnu_content_...
* FCC Commissioner Michael J. Copps and Mayor Antonio Villaraigosa Address
the AFTRA Convention in Los Angeles
http://www.aftra.org/press/pr_20050717_fccVill.htm

IS COMCAST TOO BIG?
There's a growing chorus among programmers and competitors decrying cable
giant Comcast's market power. Many in Congress and at the Federal
Communications Commission and Federal Trade Commission are exploring a
thorny question: Is Comcast too big? What they decide could have an adverse
impact on Comcast that could affect the larger cable industry at a time
when Washington is seriously considering rewriting broad swaths of
telecommunications policy. Comcast is already expected to be one target in
a new round of Senate hearings on media consolidation that antitrust
staffers are quietly planning. Programmers and competitors will likely
testify soon on the company's market power -- and questions of abuse. DBS
rivals DirecTV and EchoStar are making forceful new arguments to the FCC
about Comcast's national scale and its strategy of clustering cable
systems. Comcast's local strength could thwart their access to important
regional sports networks -- or at least could increase their cost. Comcast
has long exploited a legal loophole and refused to sell its Philadelphia
sports channel to satellite companies. One result: Just 8% of metro-Philly
homes subscribe to DBS, the fourth-lowest penetration rate of the 212
Nielsen TV markets and half the average rate of the 10 largest. Although
the government is hardly likely to force Comcast to sell systems, the FCC
or FTC could impose new rules on how the company deals with programmers.
The new scrutiny stems in large part from the planned $17.6 billion sale of
Adelphia Communications. Comcast and Time Warner have teamed to buy the 5.2
million-subscriber operator out of Chapter 11. They plan to divide the
systems, swap ones they already own, and extinguish Comcast's 21% stake in
Time Warner Entertainment. Comcast will walk away with 2.2 million new
subscribers; Time Warner with 3 million. Time Warner will face scrutiny as
well, in part because it, too, is tough on programmers. One company
advisor, seeking to distance the two operators, notes that Time Warner
Cable will be half Comcast's size. Even Comcast acknowledges that its size
has made it an inevitable target.
[SOURCE: Broadcasting&Cable, AUTHOR: John Higgins]
http://www.broadcastingcable.com/article/CA628786?display=Feature&referr...
(free access for Benton's Headlines subscribers)
* Report: Cable Bills To Top $100 by 2008
A new report from Kagan Research says cable subscribers should expect the
average cable bill to jump from $80 a month in 2005 to the $100 mark in
2008 as they sign on for new services like voice, improved data and even
wireless.
http://www.broadcastingcable.com/article/CA628704?display=Breaking+News&...
(free access for Benton's Headlines subscribers)
* Kagan: Cable Revenue to Double by 2015
http://www.multichannel.com/article/CA628711.html?display=Breaking+News
(requires subscription)

GROUPS CALL FOR ADELPHIA CONDITIONS
Media Access Project, a public-interest law firm, filed, on behalf of many
organizations, a petition to deny the sale of Adelphia cable system assets
to Comcast and Time Warner. To the extent the FCC approves the merger, the
groups called for major conditions including application of federal
program-access rules to cable video-on-demand content and a requirement
that Comcast and Time warner provide consumers with multiple
Internet-access providers or adhere to network-neutrality rules with regard
to Internet-content providers. MAP's clients challenging the deal were:
Free Press, Center for Creative Voices in Media, Office of Communication of
the United Church of Christ Inc., U.S. Public Interest Research Group,
Center for Digital Democracy, CCTV, Center for Media & Democracy, Media
Alliance, National Hispanic Media Coalition, the Benton Foundation and
Reclaim the Media.
[SOURCE: Multichannel News, AUTHOR: Ted Hearn]
http://www.multichannel.com/article/CA628816.html?display=Breaking+News
(requires subscription)
* FCC asked to put limits on deal for Adelphia
http://www.usatoday.com/printedition/money/20050725/1b_adelphia_25.art.htm

BROADCASTING

NEWSPAPERS AND TV STATIONS TRY CROSS-POLLINATION
More than 100 stations have newspaper partners, according to a new survey
by Ball State University. At a time when newspapers and TV stations are
seeing their audiences decline, industry executives believe that local
media need to find ways to grow their share. Tapping into each other's
audience, they say, can create new consumers. The timing is crucial: Daily
newspaper readership fell from 58.6% of adults in 1998 to 52.8% in 2004,
according to the Newspaper Association of America. From May 1997 to May
2004, the average audience share for TV stations' early-evening news
dropped 18%, while late news slipped 16%, according to the Project for
Excellence in Journalism and BIA Financial. Banding together, news
directors say, strengthens both products. Although these alliances look
good on paper, they can be difficult to execute. A major obstacle, news
directors say, is the culture clash between newsrooms. Newspaper reporters
often see their TV colleagues as lacking depth, an attitude that makes TV
reporters resentful.
[SOURCE: Broadcasting&Cable, AUTHOR: Allison Romano]
http://www.broadcastingcable.com/article/CA628790?display=News&referral=...
(free access for Benton's Headlines subscribers)
* Singin' the News Blues
[Commentary] I don't believe I've ever heard more folks in the industry
bemoaning the state of television news. Almost everyone in the game
operates in a state of uncertainty.
http://www.broadcastingcable.com/article/CA628823.html?display=News&refe...
(free access for Benton's Headlines subscribers)

SATELLITE RADIO'S NEW LOCAL CONTENT RILES BROADCASTERS
Local traffic and weather reports are among the most basic services radio
can provide. Now, these features are the latest front in a widening battle
between broadcasters and their upstart satellite radio competitors. XM
Satellite Radio and Sirius Satellite Radio are moving quickly to add local
features to their services, hoping to make a dent in a stronghold of
traditional broadcasters. Both XM and Sirius already offer traffic and
weather channels in certain major markets and both companies show signs of
wanting a bigger local presence. Longtime radio broadcasters say that is a
betrayal of satellite's formal mandate. They argue that, when the Federal
Communications Commission agreed to award satellite radio licenses in 1997,
it acted with the understanding that satellite would be a national service
only. Satellite providers say they never made such a promise, and there is
nothing in their licensing agreements forbidding local programming. The
National Association of Broadcasters, the TV and radio industry's main
trade group, has seized on a recent XM spectrum acquisition as a chance to
rally forces against satellite's advances into local content. The FCC just
opened a comment period for the acquisition, a routine procedure for any
license transfer. But the NAB isn't waiting on the FCC. The day after XM
announced its plans, NAB President Eddie Fritts sent a letter to every
member of the House of Representatives, calling XM's pending acquisition
"part of a longstanding pattern of deception by the satellite radio
industry." He asked members to support a bill introduced this year by Chip
Pickering (R., Miss.) and Gene Green (D., Texas) that would prevent
satellite services from using their on-the-ground repeaters, which
strengthen the national satellite signal in certain areas, to deliver
content to some locations and not others. The bill also would mandate the
FCC to examine the legality of delivering local content on nationally
distributed channels and would forbid satellite radio from using any
technology created in the future to deliver local content. So far, the bill
is stuck at the subcommittee level with little chance of seeing action
before the autumn at earliest.
[SOURCE: Wall Street Journal, AUTHOR: Sarah McBride sarah.mcbride( at )wsj.com]
http://online.wsj.com/article/0,,SB112225495906094590,00.html?mod=todays...
(requires subscription)

A SPANISH-TV UPSTART NIPS AT HEELS OF NO. 2 TELEMUNDO
TeleFutura is the nation's third Spanish-language television network and it
is making waves in the business. While the industry long has watched the
rivalry between top-rated Univision and perennial No. 2 Telemundo, the most
interesting fight these days is TeleFutura's quest to unseat Telemundo in
the second slot. Unless the programming lineup of Telemundo, a unit of
General Electric Co.'s NBC Universal, strikes a chord with more U.S.
Hispanics in the upcoming season, Univision Communications soon may boast
the top two positions in Spanish-language television. When General Electric
acquired Telemundo three years ago, it was betting on the growth of the
Hispanic population in the U.S. Spanish-language television is adding
viewers and advertisers faster than mainstream English-language television.
Thus, regardless of what network occupies the No. 2 spot in the coming
season, all three players are likely to keep expanding. Hispanics are the
largest minority in the U.S., numbering about 41 million. The steady stream
of immigrants from Latin America provides an ever-growing audience for
Spanish-language TV. Broader programming is drawing bilingual viewers, too.
Advertisers are taking note. Ad spending on Spanish-language television
jumped 19.6% in the first quarter of 2005 compared with the same quarter a
year earlier, according to Nielsen Monitor-Plus. Overall U.S. media ad
spending rose a paltry 2.4% in the first quarter from a year earlier.
[SOURCE: Wall Street Journal, AUTHOR: Miriam Jordan miriam.jordan( at )wsj.com]
http://online.wsj.com/article/0,,SB112225742216794624,00.html?mod=todays...
(requires subscription)

SONY BMG TO PAY FINE IN SETTLEMENT OF AIRPLAY PROBE
New York Attorney General Eliot Spitzer is expected to announce today a
settlement with Sony BMG Music Entertainment as part of an 11-month
investigation into how music companies influence which songs get played on
radio stations including providing gifts, trips and tickets to executives.
The settlement is to include a fine of at least $10 million, as well as
changes in Sony BMG's radio-promotion practices and an acknowledgment that
some of those practices have been improper. The investigation focuses on
the use of so-called independent promoters: middlemen who are paid to plug
new songs to radio stations, and who pay the stations for the right to do
so, which is legal. The latter practice often has been likened to payola --
direct payment, either to executives or stations themselves, in exchange
for airplay of specific songs -- which is illegal under U.S. federal law.
[SOURCE: Wall Street Journal, AUTHOR: Ethan Smith ethan.smith( at )wsj.com]
http://online.wsj.com/article/0,,SB112207550570593873,00.html?mod=todays...
(requires subscription)

TELECOM

FCC EYES RECASTING DSL AS INFORMATION SERVICE
A plan by FCC Chairman Kevin Martin to reclassify teleco's high-speed
Internet service, DSL, as an information service is circulating among the
other commissioners's offices, seeking approval. The new classification
would lessen regulation of Internet access service provided by incumbent
phone companies. The move was expected after the US Supreme Court's Brand X
ruling, which upheld similar FCC handling of cable modem service. Chairman
Martin reportedly had hoped to gain enough backing to land the item on the
Aug. 4 Commission agenda, but sources voiced doubts. The item wasn't on an
internal list of agenda items circulated 3 weeks before each meeting.
Sources said that means Martin is still negotiating with the Commission's
two Democrats for their support. With Commission membership down to four,
the Chairman needs at least one Democrat to pass anything. The item
possibly could be placed on the agenda this week, a source said, but that
would have to occur before Thursday, when the official list of agenda items
will be released to the public.
[SOURCE: Communications Daily, AUTHOR: Edie Herman]
(Not available online)

CHIP START-UPS BATTLE TO PROVIDE NETWORK FLEXIBILITY FOR CELLPHONES
A new breed of startups is closing in on a high-tech holy grail: chips that
could help cellphones jump between different communications networks to
give users the best service. Backers of such "software-defined" chips
believe they will hasten the arrival of multi-function phones and other
portable devices that can do tricks like watching broadcast TV and surfing
the Web at the speeds of home broadband connections. They hope to grab a
chunk of a cellular chip market that totaled $22.4 billion in 2004,
according to Forward Concepts, a market-research firm. But the basic idea
of multifunction phones face a chicken-and-egg problem. Though cellphone
users now can roam among some networks when they travel, carriers are not
exactly eager to let users jump among services in their home market.
[SOURCE: Wall Street Journal, AUTHOR: Don Clark don.clark( at )wsj.com ]
http://online.wsj.com/article/0,,SB112224041698594289,00.html?mod=todays...
(requires subscription)

QUICKLY

THE MEDIA INDUSTRY AND INDECENCY: SCRUBBING THE AIRWAVES
More than any other industry, America's multi-billion-dollar entertainment
business is caught in the crossfire of the country's culture war. Media
firms have always had to walk a fine line between giving adults realistic
shows and shielding children from sex and bad language. But thanks to the
current political clout of social conservatives, TV and radio firms are
under more attack than ever for allegedly corrupting America's youth.
Congress is threatening to increase sharply fines for airing indecent
material, and some politicians want to regulate cable and satellite TV for
indecency for the first time. Over 80% of American homes subscribe either
to cable or satellite TV, but only broadcast television, which is
technically free, is subject to indecency regulation. The media industry
fears that new rules could damage its business model.
[SOURCE: The Economist]
http://www.economist.com/business/displayStory.cfm?story_id=4199162

CBS CHAIRMAN MOONVES TOUTS WHITE HOUSE WARMING TO NETWORK WITH SCHIEFFER AT
HELM
In the July 21 edition of The Philadelphia Inquirer, columnist Gail Shister
quoted CBS chairman Les Moonves: "That's not the end-all, be-all, but
obviously the White House doesn't hate CBS anymore with [Bob] Schieffer in
the anchor chair." But far from hating CBS, the White House has reason to
embrace the network and its selection of Schieffer to serve as interim
anchor following Dan Rather's departure as anchor of the CBS Evening News.
Schieffer has previously described his "golfing friendship" with President
Bush "during the 1990s" and has said, "It's always difficult to cover
someone you know personally."
[SOURCE: Media Matter for America]
http://mediamatters.org/items/200507220005

THE SUPREME CHALLENGE: ZERO VISUALS TIMES 9
For a visual medium, the lack of pictures is crucial. The amount of airtime
devoted to untangling Supreme Court decisions is dwarfed by the cases
involving Martha Stewart, Michael Jackson and Kobe Bryant. By contrast,
major court rulings on medical marijuana, racially influenced jury
selection and government seizure of private property tend to be one- or
two-day stories at best. Television reports on these high-court rulings are
also eclipsed by all those speculative stories about William Rehnquist
stepping down (he isn't) and whether President Bush would pick Edith
Clement or some other judge besides Roberts for the Sandra Day O'Connor
vacancy (he didn't). Just as political reporters cover campaigns far more
than governing, the Roberts selection provides the media with a clear story
line -- whether the Senate will confirm the appeals court judge. But with
no Clarence Thomas-style controversy to feast upon, the networks could
quickly tire of examining the details of Roberts's record and judicial
philosophy. How likely is it that the Roberts confirmation hearings -- the
first such Senate showdown in the era of three cable news networks -- will
draw gavel-to-gavel coverage for long disquisitions on "originalist" and
"strict constructionist" philosophies? If the battle turns bloody, which
seems less likely than if Bush had picked a more incendiary nominee, the
coverage will heat up. But when the first Monday in October rolls around,
the justices will again be bit players on television news.
[SOURCE: Washington Post, AUTHOR: Howard Kurtz]
http://www.washingtonpost.com/wp-dyn/content/article/2005/07/24/AR200507...
(requires registration)

US ROLE IN DTV PRODUCTS 'QUITE SIGNIFICANT,' SHAPIRO TELLS SENATE
"Contrary to what you may have heard otherwise," the role of U.S. companies
in the development and production of digital television products "is quite
significant," Consumer Electronics Association President Gary Shapiro told
the Senate Commerce Committee in a letter Friday. Shapiro said the ATSC
system was invented in the U.S. by a "Grand Alliance" of firms. Moreover,
Shapiro said, "today's DTV products use highly sophisticated chips made by
leading U.S. technology firms, including Texas Instruments, Liberate
Technologies, Rockwell, Intel, Broadcom, Zoran and Zarlink." He said about
$10 billion worth of U.S.-produced components are used annually in TV sets
assembled here and abroad. CEA estimates 1.8 million Americans owe their
jobs to the U.S. CE industry, "which spans not just manufacturing, but
content development, retail sales, broadcasting, mobile communications, and
cable and satellite,"
[SOURCE: Communications Daily, AUTHOR: Paul Gluckman]
(Not available online)

DIGITAL TRANSITION WON'T TRIGGER WASTE ANALOG SETS, SAYS CE INDUSTRY
As Congress mulls fixes for burgeoning electronics waste (e-waste),
industry is seeking to convince people that the digital television
transition won't dump mountains of analog sets into the waste stream.
Analog sets linked to cable or DBS still will work after the transition,
says Parker Brugge, CEA senior dir. & environmental counsel. Only TVs
relying wholly on over-the-air signals -- about 12% of households -- will
go dark, he said, and even those can be fitted with DTV converters.
[SOURCE: Communications Daily, AUTHOR: Dinesh Kumar]
(Not available online)

A BOASTING MATCH PITS TELEVISION ADVERTISING AGAINST RADIO
Oddly enough, the Radio Advertising Effectiveness Laboratory and the
Television Bureau of Advertising have different opinions about which medium
offers a more effective platform for advertisers. The two groups are
playing dueling press releases, if you haven't caught up on your faxes, you
can now at the URL below.
[SOURCE: New York Times, AUTHOR: Alex Mindlin]
http://www.nytimes.com/2005/07/25/business/media/25ratings.html?
(requires registration)

NARUC PANELS FACE STACK OF TELECOM RESOLUTIONS AT SUMMER MEETING
The National Association of Regulatory Commissioners (NARUC) is meeting is
Austin (TX) this week and the agenda includes proposals on telecom mergers,
federal legislative reform, Lifeline/universal service and cost recovery.
[SOURCE: Communications Daily, AUTHOR: Herb Kirchhoff]
(Not available online)
For a closer look at the telecom agenda, see
http://summer.narucmeetings.org/telecom0705.pdf
* Commissioner Tony Clark of the North Dakota Public Service Commission to
serve as Chair of the Telecommunications Committee for NARUC
http://www.naruc.org/displayindustryarticle.cfm?articlenbr=26923

BUSH CREATES NEW POST TO FIGHT GLOBAL PIRACY
President Bush has created a new senior-level position to fight the global
piracy and counterfeiting of American products ranging from Hollywood
movies to Detroit auto parts, Commerce Secretary Carlos Gutierrez said on
Friday.
[SOURCE: Reuters, AUTHOR: ]
http://today.reuters.com/news/newsArticle.aspx?type=internetNews&storyID...

ONLINE NEWS CONSUMERS BECOME OWN EDITORS
Online news consumers are increasingly taking charge, getting their news a
la carte from a variety of outlets. Rarely do they depend on a single news
organization's vision of the day's top stories. "The old idea of surfers
coming to your Web site and coming to your front door, that's going away,"
said Lasica, a former editor at The Sacramento Bee. "People are going to
come in through the side window, through the basement, through the attic,
anyway they want to."
[SOURCE: Associated Press]
http://www.editorandpublisher.com/eandp/news/article_display.jsp?vnu_con...

THE HUNT IS ON FOR ED-TECH VISIONARIES
The search is on for the nation's top education visionaries. Dell, the
nation's leading provider of computers to schools, and the world's leading
software maker, Microsoft, have announced the creation of a Visionary
Award. The program seeks to empower forward-thinking educators by providing
the tools and resources to help them upgrade the nation's classroom for the
21st century.
[SOURCE: eSchool News, AUTHOR: Corey Murray]
http://www.eschoolnews.com/news/showStory.cfm?ArticleID=5790

FRANCE TELECOM NEARS PURCHASE OF SPANISH WIRELESS OPERATOR
France Telecom has apparently emerged as the likely winner of an auction
for Amena, tentatively agreeing to a deal for the Spanish wireless
operator. The offer under discussion values Amena at about $12.79 billion
and would include a mix of cash and shares as well as debt that the French
company would assume. A detailed breakdown of the payment terms were still
being worked out. Amena is part of Spanish telecommunications and cable
operator Grupo Auna SA, which has been for sale for months. As part of the
deal, Auna's shareholders may retain a minority stake in Amena.
[SOURCE: Wall Street Journal, AUTHOR: Cassell Bryan-Low
cassell.bryan-low( at )wsj.com and Brian Lagrotteria
brian.lagrotteria( at )dowjones.com]
http://online.wsj.com/article/0,,SB112221122488094203,00.html?mod=todays...
(requires subscription)

HONG KONG TO ISSUE UNIFIED BROADBAND LICENSES NEXT YEAR
Hong Kong will issue licenses next year to allow both fixed and mobile
phone firms to offer broadband wireless services, newspapers said on
Saturday, bringing "anytime, anywhere" Internet access closer to reality.
[SOURCE: Reuters]
http://today.reuters.com/news/newsArticle.aspx?type=technologyNews&story...
--------------------------------------------------------------
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.
--------------------------------------------------------------

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

POLICYMAKERS
High Court Nominee Roberts Well Known in Communications Circles
European Leaders Talk Telecom, Technology with U.S. Officials

TELEVISION
Despite FCC Mandate, Digital Tuners In
Limited Supply On Store Shelves
Video Franchising Legislation
Martin=92s Must-Carry Plan on Hold
Groups Revive a la Carte Campaign
Cable Operators Rush Services To Keep Edge
Task Force Takes Ratings Bill to Task

CELLPHONES
Iraq's Cellphone Battle
Cellphone Firms Accused Of Billing for Unwanted Ads

QUICKLY -- Accessibility could take a step backward; Public Awareness of=20
Internet Terms; Remember your first time online?; Telus union seems certain=
=20
to strike Friday; The Online Popularity Test

POLICYMAKERS

HIGH COURT NOMINEE ROBERTS WELL KNOWN IN COMMUNICATIONS CIRCLES
U.S. Supreme Court nominee John Roberts is better known among Washington=20
communications attorneys for his telecom and media issues work as a judge=
=20
on the U.S. Appeals Court, D.C., and a Hogan & Hartson attorney=20
representing Fox in a successful challenge to FCC media ownership rules.=20
That case was among a number of cases leading to a recent bid by then-FCC=
=20
Chairman Michael Powell to rewrite the rules, In the only FCC-related case=
=20
attorneys say reflects Roberts=92 =93strict constructionist=94 views, he wr=
ote a=20
2003 order upholding an FCC decision to require tuners in digital TVs.
[SOURCE: Communications Daily, AUTHOR: Edie Herman, Andrew Noyes, Tania=20
Panczyk-Collins]
(Not available online)
* Supreme Court Nominee Has Record Of Deferring To FCC
http://www.njtelecomupdate.com/lenya/telco/live/tb-VOTK1121892235401.html
* Court Nominee In the Eye of the Blogger Swarm
http://www.washingtonpost.com/wp-dyn/content/article/2005/07/20/AR200507...
2337.html

EUROPEAN LEADERS TALK TELECOM, TECHNOLOGY WITH US OFFICIALS
Data security, technology developments and telecom policy and Internet=20
governance were key topics for Members of the European Parliament (MEPs)=20
visiting Washington this week. Traversing Capitol Hill and federal=20
agencies, delegates spent 3 days speaking with a parade of political power=
=20
brokers -- sometimes seeing eye-to-eye, sometimes befuddled by the U.S.=20
system -- but always stressing the need for more U.S.-Europe collaboration=
=20
on communications issues. At the FCC, they talked talk telecom and Internet=
=20
telephone service (VoIP). Issues linked to VoIP providers' universal=20
service obligations are only beginning to emerge in Europe, officials said.=
=20
Telecom stakeholders are pushing the European Commission to revise a 1998=
=20
universal service directive that requires EU countries to make sure=20
everyone has access to a fixed-line phone. That debate probably will peak=
=20
next year when the commission starts a review of the EU Framework for=20
Electronic Communications. The FCC is eyeing ways to calculate Universal=20
Service Fund contributions, but European regulators aren't yet talking=20
about alternatives by which their carriers can fulfill such=20
obligations. Europe has a single, technology-neutral framework for voice=
=20
telephony. Of a UN report on Internet governance released Mon., MEPs said=
=20
their main goal is ensuring Web stability and security, regardless of some=
=20
government calls for an international body to oversee the Internet. "The=20
prevailing view across the European Union is that we want to sustain ICANN=
=20
as being an independent and international driver," said Conservative MEP=20
Malcolm Harbour, noting a willingness to engage a wider range of=20
stakeholders: "What we don't want to see is the Internet fragmented into a=
=20
series of closed loops with single points of entry whereby the larger=20
nations could have control over a single gateway." The Internet=92s=20
"pluralist nature" must be preserved, he added.
[SOURCE: Communications Daily, AUTHOR: Andrew Noyes]
(Not available online)

TELEVISION

DESPITE MANDATE, DIGITAL TUNERS IN LIMITED SUPPLY ON STORE SHELVES
In spite of an FCC order that digital tuners be included in all large=20
television sets and half of all mid-sized sets by July 1, the majority of=
=20
such sets offered by retailers still do not include them. Of the sets for=
=20
sale on the Web site of the electronics retailer Best Buy Tuesday, 33=20
percent included tuners capable of receiving digital broadcasts. Circuit=20
City's online percentage of digital sets was 44 percent, according to a=20
survey of the two leading electronics retailers conducted by National=20
Journal's Technology Daily. The FCC has mandated that electronics companies=
=20
build digital tuners into progressively smaller sets. On July 1, 2004, 50=
=20
percent of all sets 36 inches and higher needed tuners. As of this past=20
July 1, 100 percent of those sets and 50 percent of sets 25 inches to 35=20
inches were to have such tuners.
[SOURCE: Technology Daily, AUTHOR: Drew Clark]
http://www.njtelecomupdate.com/lenya/telco/live/tb-TLPS1121891855029.html
* DTV: Industry Reaction Is Mixed To Limited Availability Of Tuners
http://www.njtelecomupdate.com/lenya/telco/live/tb-IBKL1121892013653.html

VIDEO FRANCHISING LEGISLATION
Video franchising is the =93central most important element to the telecom=
=20
update bill we=92re on the verge of writing=94 in the House Commerce Commit=
tee,=20
Rep. Boucher (D-VA) said at a Nortel luncheon Wednesday. He said he=20
envisions a =93one-stop shop=94 that would establish the conditions for new=
=20
entrants. =93Appropriate=94 requirements for the bill, Rep Boucher said,=20
include: 1) Agreement that telco and other competitors pay same franchise=
=20
fees and taxes to local governments, 2) New entrants should provide public=
=20
education programming (PEG) channels; and 3) Cable wouldn't be required to=
=20
renew franchises. What=92s not appropriate for the bill are requirements fo=
r=20
buildout and provision of TV facilities for local communities where they=20
have already been provided, Rep Boucher said. The National Cable &=20
Telecommunications Association and Bell company SBC Communications=20
applauded the broad outlines of Rep Boucher=92s plans, but differed=20
significantly on details.
[SOURCE: Communications Daily, AUTHOR: Anne Veigle]
(Not available online)
* Boucher Opposes 'Build-Out' Rules For Bell Firms In Video Franchises
http://www.njtelecomupdate.com/lenya/telco/live/tb-DMTL1121895273773.html

MARTINS MUST-CARRY PLAN ON HOLD
FCC Chairman Kevin Martin will use the August 4 public meeting to launch=20
the Commission's annual examination of the state of competition in the=20
video-programming market. Do not expect on the agenda a proposal to allow=
=20
TV stations to elect mandatory carriage of either analog or digital signals.
[SOURCE: Multichannel News, AUTHOR: Ted Hearn]
http://www.multichannel.com/article/CA626916.html?display=3DBreaking+News
(requires subscription)

GROUPS REVIVE A LA CARTE CAMPAIGN
Conservative organizations concerned about racy TV programming Wednesday=20
revived their campaign for a federal law that would require cable companies=
=20
to sell channels individually at reasonable prices. The cable industry is=
=20
strongly opposed to an a la carte mandate, claiming that it would raise=20
rates and bump off niche and specialty channels that can't survive outside=
=20
of the traditional tiering structure. =93We believe we should have the righ=
t=20
to =85 choose the cable channels that come into our home, rather than being=
=20
forced to take them and then call the cable company and have them block it=
=20
out,=94 said Phil Burress, president of Citizens for Community Values, an=
=20
adviser to Dr. James Dobson=92s Focus on the Family.
[SOURCE: Multichannel News, AUTHOR: Ted Hearn]
http://www.multichannel.com/article/CA628263.html?display=3DBreaking+News
(requires subscription)
See also:
* Conservatives Intensify Push For 'A La Carte' Cable Pricing
http://www.njtelecomupdate.com/lenya/telco/live/tb-JNEV1121892418884.html
* Protecting Children from Media Sex and Violence
http://adage.com/news.cms?newsId=3D45589

CABLE OPERATORS RUSH SERVICES TO KEEP EDGE
Cable operators are accelerating the development of technology that they=20
say will enable them to stay ahead of phone companies and other new=20
competitors in television service. They are moving quickly to develop a new=
=20
"switched" way of transmitting signals to customers' sets that greatly=20
increases the selection of channels and other features they can offer. This=
=20
new method, which transmits only the program viewers are watching to the=20
home, would allow a cable operator to offer more high-definition TV,=20
video-on-demand or new channels, for example. The technological arms race=
=20
is further evidence that television is entering a new content- and=20
feature-rich era. Early signs of this transition were the introduction of=
=20
TiVo and other digital video recorders and video-on-demand services that=20
enable viewers to watch shows whenever they want. But many more new=20
products and services are in the works by businesses using Internet=20
technology to combine the functions of TVs, computers, the Internet and=20
telephones. Cable has to make sure it doesn't get leapfrogged.
[SOURCE: Wall Street Journal, AUTHOR: Peter Grant peter.grant( at )wsj.com]
http://online.wsj.com/article/0,,SB112191275980091783,00.html?mod=3Dtoda...
us_marketplace
(requires subscription)
See also --
* It rings, it plays, it has TV
http://www.csmonitor.com/2005/0721/p14s02-stct.html

TASK FORCE TAKES RATINGS BILL TO TASK
Proposed legislation that calls for mandatory oversight of TV ratings has=
=20
drawn another opponent: The Independent Task Force on Television=20
Measurement. The task force Wednesday urged the Senate Committee on=20
Commerce, Science and Transportation and the House Commerce Committee to=20
nix bills that would require mandatory accreditation of TV ratings by the=
=20
Media Rating Council.
[SOURCE: Multichannel News, AUTHOR: Linda Moss]
http://www.multichannel.com/article/CA628115.html?display=3DBreaking+News
(requires subscription)

CELLPHONES

IRAQ'S CELLPHONE BATTLE
Saddam Hussein outlawed cellphones, determined to maintain an iron grip on=
=20
his subjects. But as Iraq catches up with the world's information=20
revolution, cellphones have become as commonplace here as they are almost=
=20
everywhere else in the world. Cellphones often provide more reliable=20
communications than the fixed-line phone network, which was badly damaged=
=20
in Baghdad by American bombing and subsequent looting in 2003. Most Iraqi=
=20
cellphone users have prepaid cards that they can continually replenish.=20
Iraq's cellular licenses, issued when the nation was governed by the U.S.=
=20
occupation authority in 2003, divided the country into three monopoly areas=
=20
[nothing says 'America' like a telecom monopoly!], initially restricting=20
one company, Iraqna, to Baghdad and central Iraq, cellphone company=20
Asiacell to the northern part, and Atheer to southern regions. These limits=
=20
were lifted last year, allowing competition. The three licenses expire at=
=20
the end of 2005; authorities plan a conference in London starting today to=
=20
discuss possible renewal. Cellphones are increasingly being used as battle=
=20
tools -- to set off bombs from afar, to target fire and to provide=20
insurgents with instant communications.
[SOURCE: Wall Street Journal, AUTHOR: Yaroslav Trofimov=20
yaroslav.trofimov( at )wsj.com & Sarmad Ali sarmad.ali( at )wsj.com]
http://online.wsj.com/article/0,,SB112191310085591787,00.html?mod=3Dtoda...
us_marketplace
(requires subscription)

CELLPHONE FIRMS ACCUSED OF BILLING UNWANTED ADS
A California consumer group has filed a complaint with the state Public=20
Utilities Commission alleging that Sprint Corp. and Cingular Wireless are=
=20
improperly charging customers for cellphone messages they don't want. The=
=20
Utility Consumers' Action Network, based in San Diego, told the state's=20
Public Utilities Commission it had received complaints from consumers who=
=20
said they had been billed by the companies for unwanted text messages,=20
ringtones and advertisements. The group said it is trying to get regulators=
=20
to stop the practice. Sprint is charging its customers for text messages=20
sent by Sprint touting its services, said Michael Shames, executive=20
director of the consumer group. When customers complained about charges for=
=20
Sprint's advertising, the company refused to put those customers on a=20
"do-not-spam" list, he said. Instead, he said, the customers were only=20
given the option to disable their phone from receiving any text messages.=
=20
Cingular has been violating current state law both by refusing to remove=20
charges for unwanted text messages and ringtones sent by other companies=20
and by not investigating the problem, Mr. Shames said.
[SOURCE: Wall Street Journal, AUTHOR: Sarmad Ali sarmad.ali( at )wsj.com]
http://online.wsj.com/article/0,,SB112190942669291708,00.html?mod=3Dtoda...
us_personal_journal
(requires subscription)

QUICKLY

ACCESSIBILITY MAY TAKE A STEP BACKWARDS
[Commentary] Accessibility is in everyone's interest. The World Health=20
Organization estimates that between 750 million and 1 billion of the=20
world's 6 billion people have a speech, vision, mobility, hearing or=20
cognitive impairment. But at a time when travel and currency barriers=20
continue to fall in Europe, several countries want to create new boundaries=
=20
related to the Web. These nations want to establish a label or mark that=20
would specify Web pages or products that are "accessible" to people with=20
disabilities. However, such standards could differ from existing U.S.=20
standards.
[SOURCE: C-Net|News.com, AUTHOR: Frances W. West, IBM]
http://news.com.com/Accessibility+could+take+a+step+backward/2010-1071_3...
94513.html?tag=3Dnefd.ac

PUBLIC AWARENESS OF INTERNET TERMS
The average American Internet user is not sure what podcasting is what an=
=20
RSS feed does, or what the term =93phishing=94 means. These findings from t=
he=20
Pew Internet & American Life Project are another reminder that new and=20
exciting technology developments that seize the interest of industry=20
officials and journalists such as podcasting and RSS feeds usually take a=
=20
while to register in the wider public. In addition, it is also clear that=
=20
public awareness of emerging online threats like those posed by phishing=20
scams takes a while to emerge.
[SOURCE: Pew Internet & American Life Project, AUTHOR: Lee Raine]
http://www.pewinternet.org/PPF/r/161/report_display.asp

ONE SMALL DIAL-UP FOR MAN
[Commentary] This year marks the 10th anniversary of the Internet as a mass=
=20
consumer phenomenon. In July 1995, Jeff Bezos started selling books online.=
=20
Earlier that year, Stanford graduate students incorporated Yahoo, a=20
directory for the unwieldy World Wide Web, and eBay was launched to create=
=20
a marketplace for Pez dispensers. Then on Aug. 9, 1995, half a century to=
=20
the day that the United States dropped a nuclear bomb on the Japanese city=
=20
of Nagasaki, the dot-com age was truly born with Netscape's initial public=
=20
offering. The Internet browser's shares were priced at $28, but closed the=
=20
day at $58. Do you remember the first time you went online?
[SOURCE: Los Angeles Times, AUTHOR: Andres Martinez]
http://www.latimes.com/news/printedition/opinion/la-oe-martinez21jul21,1...
19005.story?coll=3Dla-news-comment
(requires registration)

TELUS UNION SEEMS CERTAIN TO STRIKE FRIDAY
Canadian Wireless provider Telus Corp.'s 13,700 unionized employees are=20
preparing for a long work stoppage expected to be triggered by a Friday=20
deadline, when the company says it will impose the terms of a contract=20
proposal that union negotiators have rejected. Telecommunications Workers=
=20
Union president Bruce Bell says that labor disputes in telecommunications=
=20
tend to last "for a while." And while he hopes any disruption at Telus is=
=20
not long, he noted that a strike involving the union at Aliant Inc. in=20
Atlantic Canada lasted "two days shy of six months." Bell said money is not=
=20
the union's key issue, but rather language concerning the contracting out=
=20
of work, determining what job classifications belong in a contract, and the=
=20
use of temporary employees.
[SOURCE: Vancouver Sun, AUTHOR: Derrick Penner]
http://www.canada.com/vancouver/vancouversun/news/business/story.html?id...
aa5a4052-a2b3-46e3-a27a-36c44e96636d

IM SOMEBODY: THE ONLINE POPULARITY TEST
Are you more popular, at this very second, than the person who's=20
instant-messaging you? Instant messaging, you will know, is the way tens of=
=20
millions of Americans connect with their buddies faster than e-mail.=20
Beginning this week, the 50 million users of AIM, America Online's version=
=20
of instant messaging -- including nearly half of all Americans between the=
=20
ages of 13 and 25 -- could perform a self-esteem check by visiting=20
http://www.aimfight.com/ . There you enter your AOL or AIM screen name and=
=20
your friend's AOL or AIM screen name. Then you click "fight" to figure out=
=20
who's got a bigger score -- as in who's better connected and more popular.=
=20
You can almost hear the tap-tap-tapping on the keyboards right now.
[SOURCE: Washington Post, AUTHOR: Jose Antonio Vargas]
http://www.washingtonpost.com/wp-dyn/content/article/2005/07/20/AR200507...
2556.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.
--------------------------------------------------------------

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

BROADBAND
Voters say 'Yes' to Fiber
La. Referendum Gives Impetus to McCain Broadband Bill
Let Them Have Broadband
Government Net not Cheap
US Telecoms seen Beating Cable on Broadband
Fighting a Broadband Battle

TELEVISION
Tex. Video Franchising Bill May Fail in Education Fight
Industry Lobbyists Split Over Need For Telecom Act Rewrite
DTV Confusion Pervasive Among Lawmakers Who
Decry Consumer Confusion
Group Targets Indecency, Pushes For 'A La Carte' Cable
TV News Outlets Revamp Web Sites

PUBLIC BROADCASTING
Don't Get Fooled Again
Fairness in the Balance

QUICKLY -- Massive Rereg Bill Introduced; Media Kingpins Face the Music;
Diversity Said Good Business Strategy for Media; Meet the Bloggers; The
cellphone debate at 35,000 feet

BROADBAND

VOTERS SAY 'YES' TO FIBER
Lafayette voters turned out in surprising numbers Saturday for an election
with a single issue. With a 27 percent turnout, they voted 12,290 to 7,507,
or 62 percent to 38 percent, to proceed with the controversial
fiber-to-the-home project. The vote authorizes Lafayette Utilities System
to sell up to $125 million in bonds for a fiber to the home and business
project. It will involve extending fiber optics cable down every city
street, then offering residents and businesses the option of receiving
high-speed Internet, telephone and/or cable TV service through LUS. City
officials said they believe it can offer those services at lower prices
than incumbents such as BellSouth and Cox Communications. The next step for
LUS is to work with the Louisiana Public Service Commission on its rule
making, a move that can affect how much LUS can charge and could prevent
LUS from guaranteeing the fiber bonds with revenue from its electric, sewer
and water divisions. The matter may be taken up at a PSC meeting this week,
said Terry Huval, LUS director. Once LUS clears the PSC rulemaking, it will
begin the process to issue bonds. Without delays, Huval said, LUS could
have the bond money in hand in four to five months. Then the utility would
hire an engineering firm to prepare engineering on every pole and lot in
the city.
[SOURCE: The Daily Advertiser, AUTHOR: Claire
Taylor ctaylor( at )theadvertiser.com]
http://www.acadiananow.com/apps/pbcs.dll/article?AID=/20050717/NEWS01/50...
* La. Parish Gets Broadband OK
http://www.multichannel.com/article/CA626410.html?display=Breaking+News

LA REFERENDUM GIVES IMPETUS TO MCCAIN BROADBAND BILL
With Lafayette (LA) voters approving a referendum to let the city authorize
up to $125 million in bonds to build a fiber network, Washington was a-buzz
over municipal broadband networks and a bill introduced in June that would
prevent states from barring public providers from supplying advanced
telecom capability or services using it. The McCain-Lautenberg bill is
designed to help municipalities achieve their goal of deploying high-speed
Internet services to their citizens as quickly as possible. In Lafayette's
case, the network represents a service as much as an economic development
tool to attract more business development, said Jim Baller, an attorney for
municipal interests. While the La. city's effort may be a successful first
start, there are 14 states that have passed laws that put restrictions on
cities investing in their own advanced communications services -- one
reason Sen McCain introduced his bill.
[SOURCE: Communications Daily, AUTHOR: Anne Veigle]
(Not available online)
* La. City Votes Municipal Network Expansion
http://www.njtelecomupdate.com/lenya/telco/live/tb-OKGE1121718831744.html
* Intel Backs Municipal High-Speed Networks
http://www.njtelecomupdate.com/lenya/telco/live/tb-EUOL1121715022852.html

LET THEM HAVE BROADBAND
[Commentary] Only about 10%-20% of those living in rural areas have access
to speedy broadband connections through cable or telephone companies,
according to various estimates. Satellite connections, with delayed
responses and some uplink speeds nearly as slow as dial-up, aren't a
satisfying solution to many rural residents. At stake is far more than
downloading music or playing video games at full speed. Increasingly,
high-speed links are a lifeline to the new economy. The telecommunications
companies say they have little incentive to deliver costly broadband
connections to sparsely populated areas, and from a business perspective,
they're right. What's less understandable is why those companies fight to
prevent people in rural areas from wiring themselves. Telecommunications
companies make two arguments against such efforts: 1) Unfair competition.
No private company can compete against taxpayer-sponsored Internet systems,
they say. But for the most part, communities push ahead on their own only
after the private companies fail to meet their needs. No mayor would
survive spending local bond money to build an unnecessary network. 2) Most
of the country already has broadband access. New data from the Federal
Communications Commission show that 99% of Americans live in zip codes with
high speed connections, note the companies. That ignores millions in those
zip codes who have either no broadband or slow broadband.
[SOURCE: USAToday, AUTHOR: Editorial Staff]
http://www.usatoday.com/printedition/news/20050719/edit19.art.htm

GOVERNMENT NET NOT CHEAP
[Commentary] According to new FCC data, 99% of us live in zip codes where
high-speed Internet is available, and 83% of us have a choice of providers
as wireless, cable, landline, satellite and power companies join the
competitive fray. Despite this progress, many local communities are
entering the broadband business, investing millions of taxpayer dollars on
advanced communications networks of their own. The idea may sound
appealing, based largely on the false assumption that a government service
is cheaper. But broadband networks require significant ongoing investment
and technical expertise to stay on top of changes in technology and to
ensure a quality customer experience -- attributes not often associated
with government. Local governments play a crucial role in our daily lives,
but they are ill-equipped for the financial and technological challenges of
being a leading-edge broadband company. No one opposes a government role
encouraging the spread of high-speed Internet in underserved areas. We
differ on whether the government should do so in competition or in
partnership with the private sector.
[SOURCE: USAToday, AUTHOR: Walter B. McCormick, Jr, CEO of the United
States Telecom Association]
http://www.usatoday.com/printedition/news/20050719/oppose19.art.htm

US TELECOMS SEEN BEATING CABLE ON BROADBAND
Industry experts say the sales figures for broadband lines due to be
released with second-quarter earnings reports over the next couple of weeks
are likely to show telephone companies added roughly 1 million new digital
subscriber lines for the second quarter. While such a total would be down
about 20% from the first quarter's growth rate, analysts say it would still
be good for 55% of all new broadband subscribers.
[SOURCE: Reuters, AUTHOR: Justin Hyde]
http://today.reuters.com/news/newsArticle.aspx?type=technologyNews&story...

FIGHTING A BROADBAND BATTLE
FCC Chairman Kevin Martin is finding he needs Republican reinforcements to
implement an ambitious agenda. Currently, the five-seat Commission has one
vacancy creating a 2-2 split between Republicans and Democrats. In an
interview, Chairman Martin says his top goal is to increase Americans'
access to high-speed Internet. Late last week, he began circulating plans
to loosen rules so neither phone nor cable companies will be required to
share their Internet connections with competitors like America Online, a
change that essentially would create a duopoly in many local markets. His
view, though, isn't popular with Democrats and consumer advocates, who
argue more competitors would lead to lower prices. Chairman Martin also
embraces the idea that local governments should be allowed to offer
wireless Internet services, at least in rural areas where some phone and
cable companies balk at providing high-speed service. Besides pushing
broadband, Mr. Martin is under pressure to more strongly enforce the FCC's
indecency rules. As a FCC commissioner, Martin was a proponent of tougher
standards and higher fines, siding with Democrats and anti-indecency
groups. After assessing $7.9 million in indecency fines in 2004, the FCC
hasn't issued any this year. "We'd like to see some movement. It may very
well require a fifth commissioner," says Tim Winter, executive director of
the Parents Television Council, an indecency watchdog group. Mr. Martin
says he doesn't believe the FCC needs to enforce standards on premium
channels like HBO, since subscribers specifically pay extra for such
channels. He says one solution is to have cable companies provide a la
carte channel pricing for consumers, a notion unpopular with the cable
industry, which built its business model around selling packages of
channels. "I saw a quote recently where one person said 'I can call up and
order HBO, I don't understand why I can't call up and cancel any of my
cable...programming.' I think that there could be additional control over
that," he says.
[SOURCE: Wall Street Journal, AUTHOR: Amy Schatz Amy.Schatz( at )wsj.com]
http://online.wsj.com/article/0,,SB112173373313488959,00.html?mod=todays...
(requires subscription)
* Questions for Kevin J. Martin
http://online.wsj.com/article/0,,SB112173473180788984,00.html?mod=articl...

TELEVISION

TEXAS VIDEO FRANCHISING BILL MAY FAIL IN EDUCATION FIGHT
The video franchising bill before the Texas legislature has two days to
pass, but that's not a certainty now. The legislature is meeting in a
special session meant to address first and foremost education funding. And
now the Governor and Lt. Governor have vowed to pass no law until the
legislature addresses -- well, education. The Texas Senate must approve an
amended form of its own bill freeing telephone companies of municipal
franchise agreements as they roll out video services.
[SOURCE: Communications Daily, AUTHOR: Jonathan Make]
(Not available online)
* Texas House OKs Deregulatory Telecom Bill
http://www.njtelecomupdate.com/lenya/telco/live/tb-HUTU1121721709271.html
* The New Cable Guy
http://www.washingtonpost.com/wp-dyn/content/article/2005/07/18/AR200507...
* Verizon Pursues Local Cable Franchises
http://www.washingtonpost.com/wp-dyn/content/article/2005/07/18/AR200507...

INDUSTRY LOBBYISTS SPLIT OVER NEED FOR TELECOM ACT REWRITE
Lobbyists from the telephone and cable industries expressed sharp
disagreement Friday about whether telecommunications legislation is
necessary or politically practical during the current Congress -- and also
disagreed about what form such legislation should take. Verizon
Communications Senior Vice President Peter Davidson insisted that
legislation is necessary and doable. The two essential components for
reform, he said, are creating national video franchises -- a move that the
cable industry opposes -- and creating a new category of telecom law
governing high-speed Internet services, or broadband. Replied Kyle
McSlarrow, president of the National Cable and Telecommunications
Association, "Everything [the Bells] are arguing now is different" from
their posture during writing of the 1996 Telecommunications Act. Nine years
ago, the Bell companies "were not making the argument that franchises are a
barrier. Now, they want to change the rules," McSlarrow declared. The
differences over video franchises occurred in a broader discussion about
the consequences of the Supreme Court's decision last month in NCTA v.
Brand X Internet Services. But McSlarrow urged caution about changes to the
1996 Telecom Act. The Brand X decision underscored the cable industry's
slogan that "like services should be regulated alike," he said, noting that
efforts to rewrite the telecom law's treatment of broadband might "spill
over" into telephone or television services.
[SOURCE: Technology Daily, AUTHOR: Drew Clark]
http://www.njtelecomupdate.com/lenya/telco/live/tb-WMCS1121723570339.html

DTV CONFUSION PERVASIVE AMONG LAWMAKERS WHO DECRY CONSUMER CONFUSION
Representatives from various sectors of the television industry warned the
Senate Commerce Committee last week that a mismanaged digital TV transition
could be a "train wreck." Committee Chairman Ted Stevens (R-Alaska) asked
if November 15, 2005 is a reasonable date by which all TVs sold in the US
could include built in digital TV tuning. The Consumer Electronics
Association replied saying that would increase the price of televisions by
$100-200. Sen. Conrad Burns (R-Mont.) then suggested building a $50
digital-to-analog converter box into every TV, noting that's the estimate
of what a set-top would cost by 2009 to keep households from going dark.
Subsidizing digital-to-analog convertor boxes for households that rely on
over-the-air broadcasts may be the downfall of digital TV legislation. New
America Foundation's Michael Calabrese told the committee a "credible" hard
date that includes a comprehensive "compensation" package "can spin straw
into gold." He called for a "broad-based" DTV converter "rebate that
ensures all households still relying on analog over-the-air are held
harmless." "By earmarking a relatively small share of the expected auction
revenue for a consumer compensation fund, Congress can both protect
vulnerable consumers and ensure potential wireless business plans will not
be disrupted via voter backlash." According to Calabrese, giving a $50 box
or rebate to 16 million households -- the minimum he projected would depend
on over the air reception -- would cost about $800 million. Giving a rebate
to 44 million households that report relying on over-the-air for local
channels would cost $2.2 billion, he said. Either way, that's a small part
of the $18-$30 billion that would be raised in a spectrum auction,
Calabrese said. A "means-tested" subsidy program for low-income consumers
would cost less than one for all disenfranchised households, Calabrese
said, but "we believe it's neither administratively practical nor fair." If
a broader program were adopted, he said, "we believe that on balance, it
would be most cost-efficient to reimburse qualified retailers" for
requiring them to offer FCC-certified converters, keeping consumers' share
of the cost "to a small co-pay, and to provide a degree of technical support."
[SOURCE: Communications Daily, AUTHOR: Paul Gluckman]
(Not available online)

GROUP TARGETS INDECENCY, PUSHES FOR 'A LA CARTE' CABLE
A coalition of 24 conservative and faith-based organizations is decrying
indecency on cable television. The group has launched a campaign aimed at
convincing lawmakers to require cable operators to offer a la carte, or per
channel, programming. Concerned Women for America, the Family Research
Council, Focus on the Family, the Parents Television Council, and the
Salvation Army are pressing their case in Washington. The coalition
represents millions of voters and lobbied on the issue in the last
Congress. The new effort began Thursday with a letter to Senate Commerce
Chairman Ted Stevens, R-Alaska, and his House countepart, Energy and
Commerce Chairman. Joe Barton, R-Texas. It suggests a public movement for
more consumer choice in cable-channel selection.
[SOURCE: Technology Daily, AUTHOR: David Hatch]
http://www.njtelecomupdate.com/lenya/telco/live/tb-ZUEB1121724451131.html

TV NEWS OUTLETS REVAMP WEB SITES
Trying to reach younger viewers and others who are not at home to watch the
evening news, television news sites are rolling out revamped web sites
offering plentiful free video news stories on demand to surfers. "Our
audience on the Web is 10 to 15 years younger than our TV audience" for
news, says Larry Kramer, president of CBS's digital-media operations.
Visitors to ABC News's long-established Web site have a median age of 45,
nine years younger than ABC News's median TV audience, according to
Nielsen/NetRatings and research by the network, which is owned by Walt
Disney. With this in mind, "the advertisers we are going to are different,"
says CBS's Mr. Kramer, including electronics manufacturers and fast-food
chains. On the CBS Evening News TV broadcast, pharmaceutical companies
predominate, making up seven of the 10 biggest advertisers in the 11 months
to April. These included Novartis, Merck and Pfizer, whose drugs often
treat chronic conditions common in older people.
[SOURCE: Wall Street Journal, AUTHOR: Brian Steinberg
brian.steinberg( at )wsj.com and Christopher Lawton christopher.lawton( at )wsj.com]
http://online.wsj.com/article/0,,SB112173238523588921,00.html?mod=todays...
(requires subscription)

PUBLIC BROADCASTING

DON'T BE FOOLED AGAIN
A leading Republican donor named Cheryl F. Halpern is the top candidate to
replace CPB Chair Ken Tomlinson. Halpern and her husband Fred -- long major
financial supporters of Republican candidates -- have given more than
$324,000 to Republicans since 1989. During the last election, Mother Jones
magazine ranked them among the nation's top 100 "hard" money contributors.
Appointed to the CPB board three years ago by President Bush, Halpern is a
close ally of Tomlinson and part of the five-member Republican majority now
controlling the board. She and Tomlinson served together on the
Broadcasting Board of Governors (BBG), which oversees the federal
government's international broadcasting services, such as Voice of America
(VOA) and Radio Free Europe. As the chair of CPB, the agency that
distributes federal funds to noncommercial radio and TV stations and
supposedly serves as a buffer between public broadcasting and politicians
seeking to influence its news reporting and programming, Halpern would be
far from impartial. At the Senate confirmation hearing on her nomination to
the CPB board in 2003, for example, she suggested that public broadcasting
journalists should be penalized for biased programs. She also agreed with
Senator Trent Lott, R-Miss., when he questioned the objectivity of the
award-winning PBS journalist and commentator Bill Moyers. Neither Halpern
nor Lott ever said what penalties they might propose. But Halpern did refer
to her previous powers at the BBG -- which included "physical removal" of
journalists -- as a model.
[SOURCE: AlterNet, AUTHOR: Rory O'Connor]
http://www.alternet.org/mediaculture/23602/

FAIRNESS IN THE BALANCE
What is it about National Public Radio, the Public Broadcasting Service et
al. that so irks conservatives? The answer seems to be twofold, reflecting
both a general ideological aversion (using taxpayer money to support radio
and TV shows) and a specific set of complaints about the alleged leftward
tilt of programs hosted by the likes of Bill Moyers and Tavis Smiley. At a
time of massive government budget deficits, amid tight spending on social
programs of all kinds, some Republicans assert that Washington's support of
public broadcasting is expendable. What's more, conservatives like to say,
those federal funds are subsidizing a system that disproportionately serves
the tastes and interests of relatively affluent audiences. But about 27
percent of PBS viewers graduated from college, compared with 27.6 percent
for the U.S. population. Among households that watch PBS, 32 percent earn
more than $60,000 a year, compared with 37 percent across the nation.
[SOURCE: Washington Post 7/17, AUTHOR: Paul Farhi]
http://www.washingtonpost.com/wp-dyn/content/article/2005/07/15/AR200507...
(requires registration)

QUICKLY

MASSIVE DEREG BILL INTRODUCED
On July 14, Rep Maurice Hinchey (D-NY) introduced the Media Ownership
Reform Act of 2005 (H.R. 3302). The bill would: 1) invalidate all of the
FCC's 2003 media ownership rule rewrite (an appeals court only remanded the
rules for a re-do), and reinstate the newspaper-broadcast cross ownership
rule the local TV multiple ownership rule that the FCC scrapped in the 2003
rewrite; 2) restore the fairness doctrine; 3) lower the cap on TV station
ownership from the 39% (raised by Congress) back to 25%; 4) reduce the
number of radio and TV stations a company can own; 5) increase the number
of public interest obligations on all broadcasters; 6) get rid of the UHF
discount "loophole" that counts only half a UHF station's audience reach
toward ownership caps. The bill would change the FCC's biennial regulation
review to triennial, but would require any media ownership rule to be
published in the Federal Register and be the subject of at least five
public hearings across the country. (FCC Chairman Kevin Martin is said to
be agreeable to that number of hearings on the FCC's current attempted
rewrite of the 2003 rules.) The bill, co-sponsored by Diane Watson (D-CA),
would also take aim at vertical integration by mandating more
independently-produced programming on the TV networks.
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
http://www.broadcastingcable.com/article/CA626499?display=Breaking+News&...
(free access for Benton's Headlines subscribers)

MEDIA KINGPINS FACE THE MUSIC
Concerns about the Internet, new technologies and piracy continue to weigh
on the likes of Time Warner, News Corp., Viacom and Disney. Big media
companies have "missed opportunities" to attach to robust young industries,
from gaming to the Web. Investors once wooed by lofty consolidation
promises are now being told just short years later that the synergies
weren't quite what they seemed.
[SOURCE: The Street, AUTHOR: Sandy Brown]
http://www.thestreet.com/_tscs/stocks/sandybrown/10232215.html

DIVERSITY SAID TO BE A GOOD BUSINESS STRATEGY FOR MEDIA
Diversity is a good thing for media companies that strive to satisfy
consumers in a multi-ethnic market, said speakers at the Minority Media &
Telecommunications Council's "Access to Capital" Conference. Diversity is
among the FCC's top concerns, said FCC Media Bureau Chief Donna Gregg told
the conference. Promoting competition and localism are also "touchstones,"
she said, adding that "these are subject to agreement at the commission."
It's important that new minority firms enter the media industry to
stimulate "fresh, new ideas," Chief Gregg said. There will be ample
opportunities for input from stakeholders. One chance starts July 27, when
a filing window opens for applications for an upcoming auction of 172 new
FM station construction permits, she said. Gregg invited MMTC attendees to
a pre-auction seminar at the FCC July 27: "The time to get involved is
now." Auction No. 62, starting Nov. 1, offers a 35% credit to a winning
bidder who has no stake in another media or mass communications asset, an
FCC document said.Ms. Gregg's appearance was the first time an FCC media
bureau chief has spoken at the event.
[SOURCE: Communications Daily, AUTHOR: Anne Veigle, Jonathan Make]
(Not available online)

Oh... so consolidation is bad and diversity is good -- where have I heard
that before?

UNCLE SAM, MEET THE BLOGGERS
Is the future of blogs, those symbols of the Internet's democratic promise,
in jeopardy? A federal judge has ordered the Federal Election Commission to
extend campaign finance laws to the Internet. And the regulatory foray has
sparked debate about whether the anti-establishment, rant-prone but
politically relevant blogosphere is more akin to a world of activists or
journalists. Bloggers worry that bringing bloggers under the regulatory
scope of campaign finance laws will mean incurring debilitating legal fees
to defend against partisan lawsuits or FEC investigations. That is unless
the government classifies blogs as "press," which are exempted from
campaign finance laws. The whole affair has anti-establishment bloggers
taking some ever-so-establishment paths to Washington.
[SOURCE: AlterNet, AUTHOR: Kelly Hearn]
http://www.alternet.org/mediaculture/23532/

CAN WE TALK? THE CELLPHONE DEBATE AT 35,000 FEET
The possibility that airlines may soon be cleared for cellphone use has
raised alarms with security officials, flight attendants, and many of the
flying public. The Federal Communications Commission has already signaled
its willingness to lift the restrictions that it put in place in 1991
because new technology ensures that chatting at 35,000 feet won't interfere
with cellphone service on the ground. But the Federal Aviation
Administration is more reluctant. During congressional hearings last week,
FAA officials stated that while they'd keep their ban, they would also
consider requests to lift it on a case-by-case basis if the airlines can
prove that doing so won't interfere with navigational systems or avionics.
A study due out late next year will address that issue, but it's expected
to find no problems. Few groups are more opposed to allowing cellphone use
than the airlines' own front-line personnel. Flight attendants are
concerned not only about terrorists, but also about passengers' air rage if
they're forced to sit and listen to someone else chatter for three or four
hours.
[SOURCE: The Christian Science Monitor, AUTHOR: Alexandra Marks]
http://www.csmonitor.com/2005/0719/p01s02-ussc.html
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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.
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