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

CABLE
FCC to Examine Cable Ownership Rules
Cable Group Takes On Big Interests
Cable's Eyes on Wireless Prize

TELEVISION
Stay Tuned for Balance Debates
With Ratings Tight, TV Networks Vie For Richest Viewers
Venezuela Backing International News Channel
Web Pulls Ad Buyers From TV
Pols Seek Softer DTV Date For Translators

MUNICIPAL/GOVERNMENT BROADBAND
The Case For Municipal Broadband
Deceptive Myths About Municipal Broadband
The Six Leading Access Technologies
Information Security: Federal Agencies Need to Improve
Controls over Wireless Networks

QUICKLY -- Gene Kimmelman Profile; 911 dialing for Internet phones; Power
to the Edges -- Online Civic Engagement; I Want My God-TV

CABLE

FCC TO EXAMINE CABLE OWNERSHIP RULES
On Tuesday the FCC announced the adoption of a rulemaking proceeding that
examines the Commission's cable horizontal and vertical ownership
limits. The Commission intends to take a fresh look at rules that are
meant to foster competition and diversity in the video programming market.
The proceeding seeks additional comment and empirical evidence to enable
the Commission to formulate sustainable cable horizontal and vertical
ownership limits. The Notice suggests regulatory approaches and solicits
empirical evidence and theoretical justification supporting or
contradicting each of the suggested approaches by taking the following
actions: 1) Examining the legal framework governing cable ownership, 2)
Examining industry developments that may affect the development of
sustainable cable ownership limits, 3) Examining the relevant product and
geographic markets, the economic basis for establishing particular cable
horizontal and vertical ownership limits and the potential benefits and
harms of cable industry consolidation; and 4) Addressing the viability of
proposals for setting limits suggested in the record in response to a 2001
rulemaking proceeding. In a joint statement, FCC Commissioners Copps and
Adelstein expressed disappointment that the Commission never acted on the
four year old proceeding -- and ask that it now become a top priority.
[SOURCE: Federal Communications Commission]
* Press Release:
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-258699A1.doc
* Second Further Notice of Proposed Rulemaking:
http://hraunfoss.fcc.gov/edocs_public/attachmatch/FCC-05-96A1.doc
* Copps & Adelstein Joint Statement:
http://hraunfoss.fcc.gov/edocs_public/attachmatch/FCC-05-96A2.doc
Coverage --
* FCC Tries Again On Cable Ownership
Media Access Project has threatened to take the FCC to court if the sale of
Adelphia assets to industry giants Comcast and Time Warner is approved
before a new cable limit is imposed. MAP President Andrew Schwartzman said
setting a limit has increased in importance because the pay-TV industry is
more concentrated than it was in 2001. Schwartzman said he supports new FCC
Chairman Kevin Martin's decision to seek a new round of comments on cable
ownership because the record generated by the 2002 attempt is stale.
Nevertheless, Schwartzman doubted that Chairman Martin would set a limit
low enough to gain MAP's support for the final product.
http://www.broadcastingcable.com/article/CA602187?display=Breaking+News&...
(free access for Benton's Headlines subscribers)
* FCC Opens Cable-Ownership Rulemaking
http://www.multichannel.com/article/CA602137.html?display=Breaking+News&...
(free access for Benton's Headlines subscribers)
* FCC To Review Cable Ownership Regs
http://www.njtelecomupdate.com/lenya/telco/live/tb-JUSV1116363915680.html

CABLE GROUP TAKES ON BIG INTERESTS
An association of smaller cable operators kicked off its annual convention
in Washington Monday by pushing a list of public policy proposals that it
wants to see Congress and the FCC adopt on behalf of rural cable and
communications customers. Among the groups that ACA aims to challenge:
local broadcasts and the broadcasting networks, direct broadcast satellite
companies, telecommunications companies seeking to expand into video
services and the broadband division of the Agriculture Department's Rural
Utility Service. ACA has taken the lead in Washington -- even garnering
support from the National Cable and Telecommunications Association and
BellSouth -- in a petition urging the FCC to jettison a decades-old rule
protecting local broadcasters against out-of-market competitors, part of a
campaign -- admittedly uphill -- to eliminate the ability for broadcasters
and networks to charge cable operators a "retransmission consent" fee.
[SOURCE: Technology Daily, AUTHOR: Drew Clark]
http://www.njtelecomupdate.com/lenya/telco/live/tb-ROSG1116358390804.html

CABLE'S EYES ON WIRELESS PRIZE
Large cable companies such as Comcast and Time Warner have been able to
offer television programming, high-speed Internet connections and, most
recently, phone service. But, unlike phone companies, they haven't been
offering a wireless product. After the recent spate of deals among huge
telecommunications companies, all eyes are now focused on their rivals:
cable companies. Cable companies have been in talks with wireless companies
for months about joining forces as a way to give cable operators another
weapon in their battle against the telephone giants. The repercussions
would be especially significant if such a move was made by Comcast Corp.,
the country's largest cable operator, with more than 21 million
subscribers. The question Wall Street is asking is whether Comcast will act
as part of a cable-industry consortium, or strike an alliance of its own.
The most attractive partner may be T-Mobile USA , which isn't a direct
threat to Comcast in the way that SBC Communications and Verizon
Communications have become. An alliance with the newly formed Sprint-Nextel
Communications is also possible, as Sprint has aggressively pursued deals
with cable companies. But Comcast may prefer to get involved with a company
over whom it could have greater influence.
[SOURCE: Wall Street Journal, AUTHOR: Peter Grant peter.grant( at )wsj.com,
Jesse Drucker jesse.drucker( at )wsj.com and Dennis K. Berman
dennis.berman( at )wsj.com ]
http://online.wsj.com/article/0,,SB111638321449636624,00.html?mod=todays...
(requires subscription)

TELEVISION

STAY TUNED FOR BALANCED DEBATES
CPB's independent inspector general, Kenneth Konz, said he will investigate
charges by two key House Democrats that CPB Board President Ken Tomlinson
violated the Public Broadcasting Act by commissioning a political content
review of Now with Bill Moyers and recruiting a White House staff member to
write guidelines for CPB's new ombudsmen. If the controversy flags, it's
sure to revive next year if Tomlinson seeks reappointment to the board,
which requires Senate confirmation. His term expires in fall 2006. The
danger to public broadcasting is that the partisan struggle will continue,
poisoning CPB's reputation and perhaps public TV's. CPB's drive for
political balance on the air could lead to a public or private showdown
with PBS over editorial standards. The corporation's annual production aid
to PBS, worth $26.5 million next year, will depend on its approval of the
PBS standards on balance and other journalistic issues, now being reviewed
by a panel of outside journalists. Further conflict could be expected if
CPB hires Tomlinson's reported candidate for president, Patricia Harrison,
a former co-chair of the Republican National Committee who is now an
assistant secretary of state.
[SOURCE: Current, AUTHOR: Karen Everhart and Jeremy Egner]
http://www.current.org/cpb/cpb0509mess.shtml
* CPB Turns to NPR as Latest "Bias" Target
http://www.fair.org/index.php?page=2516

WITH RATINGS TIGHT, TV NETWORKS VIE FOR RICHEST VIEWERS
What viewers with higher incomes watch on TV is becoming more important to
the broadcast networks as they try to set themselves apart from the pack
and sell their fall schedules to advertisers. The four primary broadcast
networks -- ABC, CBS, Fox and NBC -- are finishing the season in one of the
tightest ratings races ever. Last year, the networks finished with 1.4
ratings points separating them; this year they're running only 0.3 of a
ratings point apart. To distinguish themselves to advertisers, broadcasters
increasingly are touting how popular their shows are with moneyed viewers.
Networks can charge advertisers a premium for delivering wealthy viewers,
since they are the hardest group to reach. High-income people tend to be
light television watchers, and are also more likely to own ad-skipping
devices such as TiVo. NBC, for example, has long played up the youth and
wealth of its viewers, and charges advertisers a premium of 5% to 20% to
reach them. Baiting wealthy types is also a strategy, some network ad
executives say, to lure more luxury marketers to broadcast TV -- a popular
medium for pitching shampoo and crackers, but not five-star hotels and
private jets.
[SOURCE: Wall Street Journal, AUTHOR: Brooks Barnes brooks.barnes( at )wsj.com]
http://online.wsj.com/article/0,,SB111638115994136568,00.html?mod=todays...
(requires subscription)

VENEZUELA BACKING INTERNATIONAL NEWS CHANNEL
On May 24 Venezuela's President Hugo Chvez will launch Televisora del Sur
(Telesur) -- TV of the South -- a 24-hour hemispheric TV news network, with
Venezuelan journalist Aram Aharonian at the helm. The idea, Chvez has
explained, is to combat "the conspiracy" by foreign networks to ignore or
distort information about Latin America. "We have been trained to see
ourselves through foreign eyes," Aharonian says. "Europeans and Americans
see us in black and white, and yet this is a Technicolor continent."
Chvez's Telesur is drawing comparisons to Al-Jazeera, the Qatar-based Arab
satellite network. Al-Jazeera has been criticized repeatedly by the U.S.
government and military for inflammatory and biased reporting in Iraq and
elsewhere in the Middle East. New sources of news can be healthy, says John
Dinges, associate professor of journalism at Columbia University in New
York. "I am in favor of initiatives that create additional voices in the
news," he says. "Al-Jazeera, for example, has made an important impact on
journalism in the Middle East." If Telesur is a propaganda tool for Chvez,
"that's politics, not journalism," Dinges says. "But if it's being done in
order to spread an alternative journalistic voice, it will be good
journalism and a contribution." Telesur's programming, available by
satellite, will be split between news and "Latin America interest"
documentaries, reaching viewers across South, Central and North America.
The network is a regional endeavor: Argentina owns 20%, Cuba 19% and
Uruguay 10%. But Venezuela, with 51%, is the main player: The government
has provided $2.5 million in start-up money. Other funding will come from
corporate sponsors, though not advertising.
[SOURCE: USAToday, AUTHOR: Danna Harman]
http://www.usatoday.com/printedition/news/20050518/a_venezuelatv18.art.htm

WEB PULLS AD BUYERS FROM TV
After years of siphoning ad dollars from newspapers and magazines, the
Internet is starting to chip away at the biggest and most powerful medium
of all: television. The Internet has become another dark cloud on the
horizon, threatening to shrink the $60-billion-a-year market for broadcast
network, cable and local TV ads. Online ad revenue surged 33% to $9.6
billion in the United States last year and is expected to grow as much this
year. A recent study by Forrester Research found that people spend 34% of
their media consumption time, including both home and work, on the
Internet. That's slightly more than the amount of time they spend watching
TV. Still, only 6% of advertising dollars go to the Web. Some broadcast
executives discount the threat. Broadcast networks reach more than 98% of
the estimated 110 million homes with TV sets in the United States, and
marketers say most online ads can't stir up consumers' emotions like the
traditional 30-second spot. But the broadcast networks already are under
pressure from cable television, video-on-demand and ad-skipping
technologies. They also face advertiser resistance to their tradition of
hiking ad rates year after year even as they lose viewers. The broadcast
networks' share of TV-watching time fell to 43% this season from 53% in
1999, according to Nielsen Media Research. But during that period,
prime-time ad revenue jumped 33% to $9.5 billion, according to Goldman Sachs.
[SOURCE: Los Angeles Times, AUTHOR: Chris Gaither and Meg James]
http://www.latimes.com/business/printedition/la-fi-internet18may18,1,188...
(requires registration)

POLS SEEK SOFTER DATE FOR TRANSLATORS
Thirteen legislators from states with significant rural areas have sent a
letter to House Commerce Committee Chairman Joe Barton (R-TX) and ranking
member John Dingell (D-MI) asking that a new DTV transition bill include a
gradual phase-in for TV translators. Some rural areas need translators to
carry TV signals to mountainous and remote areas where direct reception is
limited. The translators are hard to access and thus costly to upgrade.
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
http://www.broadcastingcable.com/article/CA602241.html?display=Breaking+...
(free access for Benton's Headlines subscribers)

MUNICIPAL/GOVERNMENT BROADBAND

THE CASE FOR MUNICIPAL BROADBAND
There are 2,007 municipalities in the United States that provide electric
service to their residents. By 2004, at least 621 of these provided some
sort of communications services to residents as well. This number is
expected to grow. This article attempts to outline some of the prominent
arguments supporting the movement toward municipal broadband, and to
evaluate some of the central arguments against it.
[SOURCE: Broadband Properties, AUTHOR: Carl Kandutsch]
http://www.broadbandproperties.com/2005issues/may05issues/Carl_Kandutsch...

DECEPTIVE MYTHS ABOUT MUNICIPAL BROADBAND
From the home office of the Baller Herbst Law Group, the Top Ten myths
surrounding municipal broad-band. Myth #10. Municipalities should not
invest in risky projects when the private sector is ready, willing and able
to serve the community's needs. Myth #9: Municipalities have unfair access
to poles, ducts, conduits, rights of way, and other public facilities. Myth
#8: Municipal communications projects raise First Amendment concerns. Myth
#7: Municipalities drive investment capital out of the market. Myth #6:
Municipal communications projects are likely to fail. Myth #5
Municipalities use public funds to cross-subsidize communications services.
Myth #4: Municipalities don't have to pay taxes. Myth #3: Municipalities
have access to cheap financing. Myth #2: Municipalities, as regulators,
favor their own service entities over the private companies they regulate.
And the #1 Myth: Municipalities want to compete with the private sector.
[SOURCE: Broadband Properties, AUTHOR: Jim Baller]
http://www.broadbandproperties.com/2005issues/may05issues/Jim_Baller_Ten...

THE SIX LEADING ACCESS TECHNOLOGIES
There are six leading groups of broad-band access technologies, with many
flavors of each available: 1) Hybrid Fiber Coax, 2) Digital Subscriber
Line, 3) Fiber to the Home, 4) Wireless, 5) Broadband over Powerline, and
6) Satellite. This paper explains them.
[SOURCE: Broadband Properties, AUTHOR: Sandy Teger and Dave Waks,
Co-founders, Broadband Home Central]
http://www.broadbandproperties.com/2005issues/may05issues/Sandy_Teger_an...

INFORMATION SECURITY: FEDERAL AGENCIES NEED TO IMPROVE CONTROLS OVER
WIRELESS NETWORKS
Wireless networks offer a wide range of benefits to federal agencies,
including increased flexibility and ease of network installation. They also
present significant security challenges, including protecting against
attacks to wireless networks, establishing physical control over
wireless-enabled devices, and preventing unauthorized deployments of
wireless networks. To secure wireless devices and networks and protect
federal information and information systems, it is crucial for agencies to
implement controls -- such as developing wireless security policies,
configuring their security tools to meet policy requirements, monitoring
their wireless networks, and training their staffs in wireless security.
However, federal agencies have not fully implemented key controls such as
policies, practices, and tools that would enable them to operate wireless
networks securely. Further, GAO tests of the security of wireless networks
at six federal agencies revealed unauthorized wireless activity and "signal
leakage" -- wireless signals broadcasting beyond the perimeter of the
building and thereby increasing the networks' susceptibility to attack.
Without implementing key controls, agencies cannot adequately secure
federal wireless networks and, as a result, their information may be at
increased risk of unauthorized disclosure, modification, or destruction.
[SOURCE: Government Accountability Office]
http://www.gao.gov/new.items/d05383.pdf
*Government says Wi-Fi networks not secure
http://www.reuters.com/newsArticle.jhtml;jsessionid=0P34Z51RG5TUACRBAEOC...

QUICKLY

AND NOW, IN THE CONSUMERS' CORNER...
A profile of the ubiquitous, the unassuming, the unsinkable... Gene
Kimmelman of Consumers Union. "I have a pretty good sense of the political
trends, what is doable in Congress and the agencies," he says. His tag team
partner is Mark Cooper, director of research at the Consumer Federation of
America. "I'm the brains, he's the brawn," says Cooper, who's also a fellow
at the Center for Internet Society at Stanford University's Law School. He
posts his 44-page resume on his Web site,
http://cyberlaw.stanford.edu/blogs/cooper/. Cooper frequently appears
before state public utility commissions, but also conducts press briefings
and testifies on Capitol Hill. See what they are like -- and what they are
up against -- at the URL below.
[SOURCE: National Journal Insider Update, AUTHOR: David Hatch]
http://www.njtelecomupdate.com/lenya/telco/live/tb-BLGC1116360448408.html

FCC SET TO REQUIRE 911 DIALING FOR INTERNET PHONES
Internet telephone providers will soon have to offer full emergency 911
calling services under an order the Federal Communications Commission is
expected to adopt Thursday in response to incidents of customers having
trouble getting help.
[SOURCE: Reuters, AUTHOR: Jeremy Pelofsky]
http://www.reuters.com/newsArticle.jhtml;jsessionid=0P34Z51RG5TUACRBAEOC...
* FCC to Rule On 911 Access For Web Phones
http://www.washingtonpost.com/wp-dyn/content/article/2005/05/17/AR200505...
(requires registration)
* FCC to Review Cable-TV Rules
http://online.wsj.com/article/0,,SB111636179170436103,00.html?mod=todays...
(requires subscription)

POWER TO THE EDGES: TRENDS AND OPPORTUNITIES IN ONLINE CIVIC ENGAGEMENT
The age of connectivity brought about by the Internet and other digital
information technologies is reshaping how Americans do business, obtain
news and information about the world, engage in social functions, shop,
express their creativity, and engage in community life. This report
provides an overview of the state of online democracy; what it is, where it
is headed, and what it means for activists and those who support them. A
literature review was completed, online discussions were monitored and
nineteen in-depth interviews with leaders in the fields of online
technologies, nonprofit capacity building, citizen engagement and social
networks were conducted. This effort is intended to be a snapshot in time,
not the ultimate guide, and to serve as a jumping off point for further
discussions to occur online about how these tools and the culture of online
civic engagement can be further developed and scaled for broader, deeper
and more lasting citizen action.
[SOURCE: E-Volve Foundation]
http://evolvefoundation.org/?q=pacesummary

I WANT MY GOD-TV
[Commentary] Facing low ratings, NBC sees the light and offers
biblically-themed programming.
[SOURCE: Los Angeles Times, AUTHOR: Editorial Staff]
http://www.latimes.com/news/printedition/opinion/la-ed-nbc18may18,1,2782...
(requires registration)
--------------------------------------------------------------
Communications-related Headlines is a free online news summary service
provided by the Benton Foundation (www.benton.org). Posted Monday through
Friday, this service provides updates on important industry developments,
policy issues, and other related news events. While the summaries are
factually accurate, their often informal tone does not always represent the
tone of the original articles. Headlines are compiled by Kevin Taglang
(headlines( at )benton.org) -- we welcome your comments.
--------------------------------------------------------------

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

** Commercial media was not in Saint Louis, but we've found plenty for you
to read about the National Conference on Media Reform. See links below. **

JOURNALISM
A Battle Over Programming at National Public Radio
New Survey Finds Huge Gap Between Press and Public on Many Issues
Caveat Vendor
CDT Expands Campaign to Keep Online Political Speech Free of Regulation
Fake News Is Hazardous to Your Health

COMPETITION
Phone Companies Shut Out of Local Cable for Some Ads

QUICKLY -- Rewriting the Telecom Act of 1996; When They Abolished the FCC;
The FCC's Threat to the 1st Amendment; New Profile of Online Community;
"Upfronts" this Week

COVERAGE OF THE NATIONAL CONFERENCE ON MEDIA REFORM

JOURNALISM

A BATTLE OVER PROGRAMMING AT NATIONAL PUBLIC RADIO
Executives at National Public Radio are increasingly at odds with the Bush
appointees who lead the Corporation for Public Broadcasting. CPB Chairman
Kenneth Y. Tomlinson is considering a plan to monitor Middle East coverage
on NPR news programs for evidence of bias. CPB's board has also told its
staff that it should consider redirecting money away from national
newscasts and toward music programs produced by NPR stations. Top officials
at NPR and member stations are upset as well about the corporation's
decision to appoint two ombudsmen to judge the content of programs for
balance. And managers of public radio stations criticized the corporation
in a resolution offered at their annual meeting two weeks ago urging it not
to interfere in NPR editorial decisions.
[SOURCE: New York Times, AUTHOR: Stephen Labaton]
http://www.nytimes.com/2005/05/16/business/media/16radio.html
(requires registration)
See Bill Moyer's speech on CPB pressure on public broadcasting:
http://www.cctvcambridge.org/freepress/archive/freepress-closing40515.zip

NEW SURVEY FINDS HUGE GAP BETWEEN PRESS AND PUBLIC ON MANY ISSUES
The University of Connecticut Department of Public Policy will release
results of a new survey today revealing a wide gap on many media issues
between a group of journalists and the general public. In one finding, 43%
of the public say they believe the press has too much freedom, while only
3% of journalists agree. Just 14% of the public can name

It is a week of media reform conferences. For these and other upcoming=20
media policy events, see http://www.benton.org/calendar.htm

MEDIA ACTIVISM
Bill of Media Rights Introduced
The Fallout From the Telecommunications Act of 1996:
Unintended Consequences and Lessons Learned

PUBLIC BROADCASTING
Public TV and Radio to Receive Big Grants
CPB Takes Out a "Contract" on PBS: How the GOP-led CPB
Wants to Control Programming

POLICYMAKERS
Top Antitrust Official to Step Down
Belvin Joins Abernathy's Staff

QUICKLY -- Bertelsmann to Buy Columbia House; European Leaders Propose=20
Counter to Google; Over 50 and Out of Favor; Internet Attack

MEDIA ACTIVISM

BILL OF MEDIA RIGHTS INTRODUCED
A coalition of 116 media-activist groups [including the Benton Foundation]=
=20
unveiled a "Bill of Media Rights" Monday, which they insist must be=20
included in any major media- or telecommunications-overhaul legislation.=20
The provisions are aimed at turning back the effects of increasing=20
corporate ownership of broadcast stations, cable systems and newspapers=20
since media-ownership rules were deregulated by the 1996 Telecommunications=
=20
Act. The consequences of the resulting consolidation since 1996 include=20
escalating cable prices, diminished ownership of media outlets by=20
minorities, and a decline in the amount of political coverage and=20
children's programming. The groups are calling on Congress to enact 15=20
provisions they believe will lead to lower prices for pay-TV and other=20
services, more competition and greater diversity of viewpoints expressed in=
=20
major communications outlets. The provisions include requirements for=20
locally produced programming; restrictions on cross-ownership of broadcast=
=20
stations, cable systems and newspapers in the same market; requirements for=
=20
political and civic programming; more frequent and "rigorous" license=20
renewals; and media employment ranks that "reflect the presence and voices=
=20
of people of color, women, labor, immigrants, Americans with disabilities=20
and other communities often misrepresented." This coming weekend, 2,000=20
anti-consolidation activists will rally in St. Louis to build momentum for=
=20
upcoming legislation over ending the switch to DTV and rewriting=20
communications laws (see you there!).
[SOURCE: Broadcasting&Cable, AUTHOR: Bill McConnell]
http://www.broadcastingcable.com/article/CA600453?display=3DBreaking+New...
ferral=3DSUPP
(free access for Benton's Headlines subscribers)
See the Bill of Media Rights at=20
http://www.creativevoices.us/php-bin/news/showArticle.php?id=3D100
See also --
* Coalition Plans to Fight Lax Telecom Law
http://www.multichannel.com/article/CA600515.html?display=3DBreaking+New...
ferral=3DSUPP
(free access for Benton's Headlines subscribers)
* New Coalition Formed to Fight for Consumer Interests
http://www.tvweek.com/news.cms?newsId=3D7807
* Consumer Coalition to Press for =91Democratic=92 Telecom Legislation
[SOURCE: Communications Daily, AUTHOR: ]
(Not available online)
* Former FCC Commissioner Gloria Tristani joins the call for a new=20
telecommunications act to represent all Americans
http://www.ucc.org/ocinc/news/050905.htm

THE FALLOUT FROM THE TELECOMMUNICATIONS ACT OF 1996: UNINTENDED=20
CONSEQUENCES AND LESSONS LEARNED
Nearly a decade after Congress approved the Telecommunications Act of 1996,=
=20
and with Congress once again set to make major media and telecommunications=
=20
policy, Common Cause Monday released a report showing how the Act failed to=
=20
deliver on its promises of competition, increased diversity of viewpoints=20
and lower prices for consumers. The report details how consumers and public=
=20
interest groups were excluded from the process of writing the 1996 law=20
while media industry lobbyists were deeply involved. Media companies have=20
since increased their influence in Washington. Eight major companies alone,=
=20
their corporate parents and their three trade groups have spent more=20
than $400 million on lobbying and federal campaign contributions since=20
1997, raising fears about the media policies Congress will adopt this year.
[SOURCE: Common Cause, AUTHOR: Celia Viggo Wexler]
http://www.commoncause.org/atf/cf/{FB3C17E2-CDD1-4DF6-92BE-BD4429893665}/FAL=
LOUT_FROM_THE_TELECOMM_ACT_5-9-05.PDF
Press Release for report:=20
http://www.commoncause.org/site/apps/nl/content2.asp?c=3DdkLNK1MQIwG&b=3...
883&ct=3D842509
* Twenty million Americans demand a seat at the table when Congress makes=20
new telecomm policy
http://www.commoncause.org/site/apps/nl/content2.asp?c=3DdkLNK1MQIwG&b=3...
883&ct=3D842531
* Common Cause President Chellie Pingree on Media Bill of Rights
http://www.commoncause.org/site/apps/nl/content2.asp?c=3DdkLNK1MQIwG&b=3...
883&ct=3D842517

PUBLIC BROADCASTING

PUBLIC TV AND RADIO TO RECEIVE BIG GRANTS
The Ford Foundation, the main financial backer of public broadcasting in=20
its formative days, is undertaking its largest initiative to support=20
nonprofit media in more than 25 years. The initiative will funnel $50=20
million over five years to a baker's dozen of public television, radio and=
=20
other media organizations. A major focus of the effort will be to spur the=
=20
creation and distribution of public affairs programming, particularly=20
programs dealing with international affairs. The Public Broadcasting=20
Service and National Public Radio will receive the largest grants, $10=20
million and $7.5 million respectively. But less well-known entities will=20
also share in the wealth, including Link TV, a television network devoted=20
to explaining the rest of the world to the United States; the Sundance=20
Documentary Fund, which supports documentaries about human rights issues;=20
and New California Media, a consortium of more than 600 print, television,=
=20
radio and Internet outlets devoted to ethnic news. The official=20
announcement of the initiative, which is expected today, comes as public=20
broadcasting is being whipsawed by a leveling off of corporate=20
underwriting, a decline in state government support and growing political=20
pressure to correct what many conservatives view as a liberal bias.
[SOURCE: New York Times, AUTHOR: Lorne Manly & Elizabeth Jensen]
http://www.nytimes.com/2005/05/10/arts/television/10publ.html
(requires registration)

CPB TAKES OUT "CONTRACT" ON PBS: HOW THE GOP-LED CPB WANTS TO CONTROL=20
PROGRAMMING
[Commentary] The Corporation for Public Broadcasting wants to have greater=
=20
control over all PBS programming. Despite its statutorily limited role in=
=20
content, the GOP-dominated CPB board fashioned a =93National Programming=20
Service Agreement=94 that would have give it unprecedented influence and=20
power over PBS=92s programming schedule. CPB regularly provides modest=20
annual funding to PBS to help support its National Programming Service=20
(NPS). For the current contract period (FY 2005-2006), CPB has earmarked=
=20
slightly more than $26 million to help pay for some of the primetime and=20
children=92s shows on PBS. But for the first time in the 14-year history of=
=20
the NPS agreement, CPB made a series of legal demands designed to reshape=20
PBS programming to its own conservative and non-journalistic ideological=20
perspectives. According to the contract, CPB wanted PBS to agree that its=
=20
programming would be governed by its own sponsored research and=20
analysis=97called the =93CPB Needs Assessment Research and Analysis." CPB=
=92s=20
goal was to secure an ideological "straitjacket" over what should be the=20
editorial independence of PBS programmers.
[SOURCE: Center for Digital Democracy]
http://www.democraticmedia.org/news/washingtonwatch/CPBNPS.html

POLICYMAKERS

TOP ANTITRUST OFFICIAL TO STEP DOWN
R. Hewitt Pate, the assistant attorney general for antitrust, has told=20
Justice Department officials that he intends to step down next month and=20
won't be involved in deciding whether to approve two huge=20
telecommunications mergers the department is investigating (SBC-AT&T,=20
Verizon-MCI). Mr. Pate has been a senior official in the antitrust division=
=20
since 2001 and became chief in 2003. On his watch, enforcement priorities=20
shifted from a focus on marketplace conduct by individual firms -- such as=
=20
the Microsoft Corp. antitrust case -- to a less intervention-oriented=20
approach, emphasizing enforcement of laws prohibiting price fixing and=20
collusion by company executives. In merger enforcement, Mr. Pate has drawn=
=20
criticism from consumer advocates for allowing too many mergers -- creating=
=20
too much concentration in media, banking and other industries. At the same=
=20
time, several of the Justice Department's attempts to challenge mergers=20
failed in federal court under Mr. Pate's watch, including its case against=
=20
the largest-ever software merger, Oracle Corp.'s $10.6 billion acquisition=
=20
of PeopleSoft.
[SOURCE: Wall Street Journal, AUTHOR: John Wilke]
http://online.wsj.com/article/0,,SB111569296855028994,00.html?mod=3Dtoda...
s_page_one
(requires subscription)

BELVIN JOINS ABERNATHY'S STAFF
Lauren "Pete" Belvin is joining FCC Commissioner Kathleen Abernathy's=20
office as acting legal advisor, with a primary focus on wireline=20
competition matters. Ms. Belvin has served as an advisor to several former=
=20
Chairmen and Commissioners at the FCC, in addition to holding senior=20
management positions in the Office of General Counsel, Office of=20
Legislative Affairs, and Cable Television Bureau. She also served at=20
Senior Majority Counsel to the Senate Committee on Commerce, Science, and=20
Transportation. Ms. Belvin's private sector experience includes her work=20
as Vice President, Federal Law and Policy for Qwest Communications, Inc.=20
and at the law firm of Wilkinson Barker and Knauer. Most recently, Ms.=20
Belvin has served as Special Counsel in the FCC's Office of Strategic=
Planning.
[SOURCE: Federal Communications Commission]
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-258596A1.doc

QUICKLY

BERTELSMANN TO BUY COLUMBIA HOUSE
In a $400 million deal, Bertelsmann will acquire Columbia House, the big=20
membership-based seller of DVDs and music. Bertelsmann plans to combine=20
Columbia House with BMG Direct, its U.S. music-club business, to create a=20
venture with about $1.5 billion in annual revenue and some 16 million=20
members in the U.S. and Canada. Bertelsmann grew up in the club business=20
and remains the world's biggest club operator, with a total of 32 million=20
members in 22 countries.
[SOURCE: Wall Street Journal, AUTHOR: Matthew Karnitschnig=20
matthew.karnitschnig( at )wsj.com]
http://online.wsj.com/article/0,,SB111568329787328746,00.html?mod=3Dtoda...
s_marketplace
(requires subscription)

EUROPEAN LEADERS PROPOSE DIGITAL LIBRARY TO COUNTER GOOGLE VISION
Plans by Google to create a massive digital library have triggered such=20
strong fears in Europe about Anglo-American cultural dominance that one=20
critic is warning of a "unilateral command of the thought of the=20
world." So great is the concern that six European leaders have jointly=20
proposed creating a "European digital library" to counter the project by=20
Google Print, as the new venture is known. Other countries are expected to=
=20
come on board.
[SOURCE: Associated Press]
http://www.latimes.com/business/printedition/la-fi-google10may10,1,65723...
tory?coll=3Dla-headlines-pe-business
(requires registration)

OVER 50 AND OUT OF FAVOR
[Commentary] More than half the nation's wealth is in the hands of people=20
over 50, who spend an estimated $2 trillion a year on products and=20
services. So why does network TV focus on the 18-to-49-year-old consumer?
[SOURCE: Los Angeles Times, AUTHOR:Meg James]
http://www.latimes.com/news/printedition/front/la-fi-fifty10may10,1,2923...
tory?coll=3Dla-headlines-frontpage
(requires registration)

INTERNET ATTACK CALLED BROAD AND LONG LASTING BY INVESTIGATORS
Investigators in the United States and Europe say they have spent almost a=
=20
year pursuing the case involving attacks on computer systems serving the=20
American military, NASA and research laboratories. The break-ins exploited=
=20
security holes on those systems that the authorities say have now been=20
plugged, and beyond the Cisco theft, it is not clear how much data was=20
taken or destroyed. Still, the case illustrates the ease with which=20
Internet-connected computers - even those of sophisticated corporate and=20
government networks - can be penetrated, and also the difficulty in tracing=
=20
those responsible.
[SOURCE: New York Times, AUTHOR: John Markoff & Lowell Bergman]
http://www.nytimes.com/2005/05/10/technology/10cisco.html?hp&ex=3D111578...
&en=3Deeb27da2e75ec022&ei=3D5094&partner=3Dhomepage
(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

PUBLIC BROADCASTING
Tomlinson Praises Lehrer; Pushes Balance
Ferree Champions CPB Balance
CPB Looks Under Bed, Finds No Dust Balls, Hires New Maid
Consumer Advocates and Media Reformers call for Nationwide
Hearings on Public Broadcasting

MEDIA
A Chance to Modernize Telecommunications
How US Consumers Spend Their Time
6 Ways TV is Changing Your Life
New Book -- Speak Softly and Carry A Big Stick: How Local TV
Broadcasters Exert Political Power
Willner: Self-Reg, Self-Promote...or Tiers
On Bloggers and Money

NEWS FROM DEPT OF EDUCATION
=91Buster' Flap gets Huge Response in Favor of Pulling Show
Bungling at top Sabotaged Worthy Education Goals
Congress Drops $6B in Ed Funds

TELECOM
Verizon Wins Bidding for MCI; Qwest Drops Out

QUICKLY -- Digital Media Consumers' Rights Act of 2005; Safety Spectrum;=20
Online Tax Collection; Reagan Official to CA PUC

PUBLIC BROADCASTING

TOMLINSON PRAISES LEHRER; PUSHES BALANCE
Praising The NewsHour with Jim Lehrer as a "model for broadcast=20
journalism," CPB Chairman Kenneth Tomlinson said Monday the service will=20
continue to "broaden support for public broadcasting," while "eliminating=20
the perception of political bias." Tomlinson remarks reported in=20
yesterday's NYTimes have helped create quite a stir (see stories below)=20
with Free Press, the nonpartisan media reform group, calling on him to=20
resign for failing to uphold CPB's nonpartisan mandate.
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
http://www.broadcastingcable.com/article/CA528972?display=3DBreaking+New...
ferral=3DSUPP
(free access for Benton's Headlines subscribers)

FERREE CHAMPIONS CPB BALANCE
At the Public Radio Leadership Forum in Washington, CPB chief executive Ken=
=20
Ferree said public broadcasting provides a nutritious alternative to the=20
=93fried foods and desserts=94 served up by commercial media. But he=
defended a=20
move to include more conservative voices on stations that are supported in=
=20
part by taxpayer dollars. =93I=92d urge you to think seriously about=
diversity=20
of opinion as you consider ways to serve your audiences,=94 he said. =93CPB,=
=20
funded as it is with taxpayer dollars and guided as it is by statutory=20
language, has special responsibilities to strive toward objectivity and=20
balance. Frankly, I don't think any of us should ever aim at a lower=20
standard. As public broadcasters, our goal should be to expand and=20
enlighten public discourse; offering a wide range of views is one way to do=
=20
that.=94
[SOURCE: Broadcasting&Cable, AUTHOR: Bill McConnell]
http://www.broadcastingcable.com/article/CA528949?display=3DBreaking+New...
ferral=3DSUPP
(free access for Benton's Headlines subscribers)
* Right-wing Coup at PBS?
The new Public Broadcasting boss either has an inappropriate sense of humor=
=20
or he's the latest participant in what the FCC called a 'right-wing coup'=20
of PBS.
[SOURCE: AlterNet, AUTHOR: Rory O'Connor]
http://www.alternet.org/mediaculture/21914/

CPB LOOKS UNDER BED, FINDS NO DUST BALLS, HIRES NEW MAID
[Commentary] The Corporation for Public Broadcasting appears bent on making=
=20
PBS and NPR programming more "fair and balanced." But lost in the debate,=20
somehow, were two public opinion studies commissioned by CPB itself,=20
finding that Americans seem to like public broadcasting just the way it is.=
=20
A July 2003 poll of 1,008 adults found that public broadcasting garnered an=
=20
80 percent "favorable" rating, a 10 percent "unfavorable" rating and a 10=20
percent "unsure." More than half surveyed felt that PBS's news programming=
=20
was more trustworthy than news shows on ABC, CBS, NBC, Fox, and CNN. A full=
=20
55 percent said that PBS programming was "fair and balanced," while a=20
whopping 79 percent said the same about NPR. Is CPB's appointment of two=20
ombudsmen to scour public broadcasting's content for bias little more than=
=20
the corporation's new leadership fishing for results that confirm its own=20
dark suspicions?
[SOURCE: Columbia Journalism Review, AUTHOR: Paul McLeary]
http://www.cjrdaily.org/archives/001479.asp
* CPB=92s =93Secrets and Lies=94: Why the CPB Board Hid its Polls Revealing=
=20
Broad Public Support for PBS and NPR
http://www.democraticmedia.org/news/washingtonwatch/CPBsurveys.html

CONSUMER ADVOCATES AND MEDIA REFORMERS CALL FOR NATIONWIDE HEARINGS ON=20
PUBLIC BROADCASTING
Free Press, Consumers Union, Common Cause and the Consumer Federation of=20
America today announced a plan to "take public broadcasting to the people,"=
=20
proposing a series of local hearings across the country where the public=20
will talk directly to broadcasters and policymakers about the future of=20
public broadcasting.
[SOURCE: Press Release]
http://www.consumersunion.org/pub/core_telecom_and_utilities/002190.html...
e
* A New Standard: Building a Public Broadcasting System that Deserves=20
Public Support
http://www.hearusnow.org/fileadmin/sitecontent/pbs_report_4-28-05.pdf
* PBS Suffers the 'Fox Effect'
http://mediacitizen.blogspot.com/2005/05/pbs-suffers-fox-effect.html
* Common Cause letter cites concern about governance of public broadcasting
http://www.commoncause.org/site/apps/nl/content2.asp?c=3DdkLNK1MQIwG&b=3...
883&ct=3D783425
http://www.commoncause.org/atf/cf/{FB3C17E2-CDD1-4DF6-92BE-BD4429893665}/CPB=
GOVERNANCE4-28-05.PDF

MEDIA

A CHANCE TO MODERNIZE TELECOMMUNICATIONS
[Commentary] Behind closed doors, Congress has already started rewriting=20
one of the most important pieces of legislation you may never have heard=20
of. The 1996 Telecommunications Act was supposed to modernize U.S.=20
telecommunications and broadcasting industries, foster competition and=20
expand consumer choice. Nearly 10 years later, Congress is ready to try=20
again. Preecs doesn't pull any punches calling for 1) ending to free=20
broadcast licenses, 2) allowing municipalities to create wholesale=20
broadband networks, and 3) ending the distinction between=20
"telecommunication" and "information services" that currently encourages=20
phone companies to evade local regulation of their proposed TV services and=
=20
cable companies to evade regulations of their proposed telephone services.=
=20
Most importantly, Preecs calls for the light of day to shine on the process=
=20
of rewriting the law: "Congress should not write a single line of=20
legislative code until well-publicized public hearings are held in all four=
=20
of the nation's time zones."
[SOURCE: Seattle Post-Intelligencer, AUTHOR: Bart Preecs]
http://seattlepi.nwsource.com/opinion/222265_firstperson02.html
* TELECOM REGULATORY REFORM ESSENTIAL
Telecom law is increasingly in conflict with marketplace realities and in=20
some cases is holding back new technologies, writes Progress & Freedom=20
Foundation senior fellow Adam Thierer. In "Four More Years... Of the Status=
=20
Quo? How Simple Principles Can Lead Us Out of the Regulatory Wilderness,"=20
Thierer spells out priorities for lawmakers in a Telecom Act rewrite.
[SOURCE: Progress & Freedom Foundation]
http://www.pff.org/news/news/2005/042905thiererfclj.html

HOW U.S. CONSUMERS SPEND THEIR TIME
Sleep. Work. Watching TV. Those three activities are 1-2-3 for the average=
=20
American. Consumers spend half their leisure time -- and effectively 11% of=
=20
their lives -- in front of the television. That=92s strong evidence of the=
=20
commanding role TV plays in the lives of consumers even as the ad industry=
=20
debates the future of the 30-second spot and the issue of slipping=20
broadcast ratings.
[SOURCE: AdAge, AUTHOR: Bradley Johnson]
http://adage.com/news.cms?newsId=3D44895

6 WAYS TV IS CHANGING YOUR LIFE
A look at how DVRs and video-on-demand will allow you to access your=20
favorite shows when you want them, how cutting-edge technology will allow=20
you to take TV with you wherever you go, how the Internet may one day=20
become television's secondary (or primary) home, and how advertising will=20
change in this brave, new TV world. From the home office in Chicago, the=20
Top 6 (we're a smaller market) ways TV is changing: 1) Viewers will be able=
=20
to watch where they want when they want. 2) Programming available on=20
demand. 3) Programming delivered via the Internet. 4) TV gives way to the=20
"home media ecosystem" which allows simple control and access their TV,=20
music and movies. 5) The future of TV advertising is in providing a gateway=
=20
to more comprehensive information. 6) 500 channels? Try 5 million.
(Gee, who knew there was so much info in my local paper?)
[SOURCE: Chicago Tribune, AUTHOR: Maureen Ryan]
http://www.chicagotribune.com/technology/chi-0505010466may01,1,4154979.s...

NEW BOOK -- SPEAK SOFTLY AND CARRY A BIG STICK: HOW LOCAL TV BROADCASTERS=20
EXERT POLITICAL POWER
Speak Softly describes the Machiavellian strategies local TV broadcasters=20
have used to influence U.S. spectrum and media policy. As Congress gears up=
=20
to "fix" the disastrous broadcast spectrum policies it passed in the=20
Telecommunications Act of 1996, Speak Softly provides a timely reminder why=
=20
the same mistakes are likely to be repeated. AUTHOR: Jim H. Snider,=20
co-author of Future Shop (St. Martin=92s Press), is a Senior Research Fellow=
=20
at the New America Foundation, a Washington think-tank. His work has=20
appeared in numerous publications including The Washington Post, U.S.A.=20
Today, and Atlantic Monthly. He holds a Ph.D. in political science from=20
Northwestern University and an MBA from Harvard University.
Buy it at the bookstore of your choice:
http://www.iuniverse.com/bookstore/book_detail.asp?isbn=3D0595347045
http://www.amazon.com/exec/obidos/tg/detail/-/0595347045/qid=3D111505340...
=3D1-1/ref=3Dsr_1_1/002-6882637-3928035?v=3Dglance&s=3Dbooks

WILLNER: SELF-REG, SELF-PROMOTE... OR TIERS
Saying cable's content woes were more than a political problem, Insight=20
Communications Chairman Michael Willner advised the industry that unless it=
=20
can better self-regulate, or self promote, it may have to create=20
family-friendly tiers or accept indecency regulations similar to those of=20
broadcasting. Willner called on all of the top 50 or 60 cable channels with=
=20
the widest distribution to do a better job of regulating their own content.
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
http://www.broadcastingcable.com/article/CA528933?display=3DBreaking+New...
ferral=3DSUPP
(free access for Benton's Headlines subscribers)

ON BLOGGERS AND MONEY
The Federal Election Commission, which has been considering issuing new=20
regulations on a range of political activities on the Internet -- and was=20
said by some to be contemplating taking a tough stance on the online=20
commentators -- revealed in late March that it intends to be much less=20
aggressive than many had feared. But now some observers are wondering=20
whether the FEC is not being aggressive enough when it comes to one=20
category of bloggers: those who take money from political campaigns. The=20
FEC requires candidates to disclose their expenditures, including any=20
payments to bloggers, in periodic reports to the government. Some bloggers=
=20
also disclose their financial relationships with candidates, but they are=20
not obliged to reveal those payments, and the agency recently said it is=20
not proposing requiring them to do so. Some election law experts want the=20
FEC to reverse that policy, saying it gives campaigns the opportunity to=20
use ostensibly independent blogs as fronts to create the illusion of=20
grass-roots support, mount attacks on their opponents and disseminate=20
information to which candidates do not want their names attached.
[SOURCE: Washington Post, AUTHOR: Brian Faler]
http://www.washingtonpost.com/wp-dyn/content/article/2005/05/02/AR200505...
309.html
(requires registration)
* New data on blogs and blogging
9% of Internet users now say they have created blogs and 25% of Internet=20
users say they read blogs. Another way to render these numbers is to note=20
that 6% of the entire U.S. adult population (Internet users and non-users=20
alike) have created blogs. That=92s one out of every 20 people. And 16% of=
=20
all U.S. adults (or one in six people) are blog readers.
[SOURCE: Pew Internet & American Life Project]
http://www.pewinternet.org/press_release.asp?r=3D104

NEWS FROM DEPT OF EDUCATION

'BUSTER' FLAP GETS HUGE RESPONSE IN FAVOR OF PULLING SHOW
In the two months after Education Secretary Margaret Spellings wrote to=20
express =93strong and very serious concerns=94 about an episode of Postcards=
=20
from Buster in which a cartoon bunny visits Vermont and meets children in=20
families headed by two mothers, Spellings heard from 197,610 people, and=20
81% supported her position, the Education Department says. Most of the=20
responses came from the American Family Association, which sent 157,537.=20
The Human Rights Campaign, a gay-rights group, sent 36,233 responses. 35=20
members of the U.S. House of Representatives congratulated Sec Spellings=20
for her =93fiscally sound and pro-family decision.=94 64 members of the=
Vermont=20
Legislature, however, wrote that the show presented two =93typical Vermont=
=20
families=94 and complained that Sec Spellings made her criticism public even=
=20
after PBS agreed not to air the episode. 60% of the financing for Buster=20
came from a Department of Education Ready to Learn grant. Buster's=20
five-year federal grant expires this year; it is unlikely to be renewed.
[SOURCE: USAToday, AUTHOR: Greg Toppo]
http://www.usatoday.com/printedition/life/20050503/bl_bottomstrip03.art.htm

BUNGLING AT TOP SABOTAGED WORTHY EDUCATION GOALS
[Commentary] Education Secretary Spellings has reviewed the findings of the=
=20
inspector general audit and investigation of the Department of Education's=
=20
contract with Ketchum public relations and its subcontractor, Armstrong=20
Williams. She is not happy. The report clearly shows serious judgment=20
lapses and poor decision making by senior department officials. There were=
=20
numerous issues, such as a dearth of communication and information sharing=
=20
within the department, between the department and Ketchum as its prime=20
contractor, and between Ketchum and Williams.
[SOURCE: Houston Chronicle, AUTHOR: Margaret Spellings, Sec of Education]
http://www.chron.com/cs/CDA/ssistory.mpl/editorial/outlook/3150287

CONGRESS DROPS $6 BILLION IN ED FUNDS
Moving one step closer to a federal education budget that lacks funding for=
=20
school technology or other key programs, Congress on April 28 passed a=20
budget resolution that does not include some $6 billion in additional=20
funding for the nation's schools and universities initially approved by the=
=20
Senate. Keith Krueger, chief executive officer of the Consortium for School=
=20
Networking, a nonprofit organization that helps the nation's schools make=20
judicious use of technology, said he isn't giving up the fight to persuade=
=20
Congress of the importance of more education dollars in the federal budget.=
=20
"While we are very disappointed that Congress moved away from the Senate=20
version of the FY06 budget, which would have added funds for education=20
generally, we recognize that this is only the first stage of a long=20
process," he wrote via eMail. "The ed-tech community will continue to keep=
=20
the heat on Congress and the [Bush] administration to support ed-tech=20
funding by making our case that educational technology is integral to=20
implementing the key provisions of No Child Left Behind and ensuring that=20
our students are prepared for the 21st century's highly competitive job=20
market."
[SOURCE: eSchool News]
http://www.eschoolnews.com/news/showStoryts.cfm?ArticleID=3D5635

TELECOM

VERIZON WINS BIDDING FOR MCI; QWEST DROPS OUT
Finally, it is Verizon-MCI. Qwest has left the building and will not bid=20
anymore for the last major independent long-distance company. MCI's board=20
decided that Verizon's offer of $26 a share, or $8.44 billion, Qwest's=20
offer of $30 a share, or $9.74 billion. Qwest is likely to join with=20
consumer groups to fight the combined MCI and Verizon deal in Washington on=
=20
antitrust grounds. In total, Qwest bids for MCI helped raise what Verizon=20
had to pay for MCI; the original bid was $6.75 billion. The Verizon-MCI=20
combination isn't final until it is approved by MCI shareholders and state=
=20
and federal regulators. There is concern that the industry's consolidation=
=20
could lead to higher phone rates. If approved, Verizon's deal for MCI will=
=20
leave the telecom industry dominated by two giants: Verizon and SBC=20
Communications. The combined Verizon and MCI will be the nation's=20
second-largest phone company by revenue, with 53 million local lines=20
largely in the Northeast and the majority stake in Verizon Wireless. MCI=20
will extend its reach globally with one of the world's largest Internet=20
networks, comprising about 60,000 large corporate customers in 150=20
countries. SBC will rank as the nation's largest phone company by revenue=20
because of its acquisitions of AT&T Wireless and AT&T Corp.
[SOURCE: Wall Street Journal, AUTHOR: Jesse Drucker jesse.drucker( at )wsj.com=20
and Almar Latour almar.latour( at )wsj.com]
http://online.wsj.com/article/0,,SB111502847456822029,00.html?mod=3Dtoda...
s_page_one
(requires subscription)
* Qwest Withdraws Bid After MCI Accepts Verizon Offer
http://www.nytimes.com/2005/05/03/business/03phone.html
* Qwest Ends MCI Bid
http://www.washingtonpost.com/wp-dyn/content/article/2005/05/02/AR200505...
254.html
* Verizon Is Winner in MCI Battle
http://www.latimes.com/business/printedition/la-fi-mci2may03,1,6512514.s...
?coll=3Dla-headlines-pe-business

QUICKLY

DIGITAL MEDIA CONSUMERS' RIGHTS ACT OF 2005
Consumers Union, the Consumer Federation of America and Public Knowledge=20
co-signed a letter to Members of Congress urging support of H.R. 1201, the=
=20
=93Digital Media Consumers' Rights Act of 2005=94 (DMCRA). They write that=
the=20
bill is "is a bipartisan measure that will help restore the historic=20
balance of copyright law =AD providing incentives to creators and broad=20
public access to creative works. The bill will also ensure that the public=
=20
is not the unintended victim of digital copyright laws and new copy=20
protection technologies."
[SOURCE: Consumers Union]
http://www.consumersunion.org/pub/core_telecom_and_utilities/002191.html...
e

SAFETY SPECTRUM MUST BE USED EFFICIENTLY
The soundest approach for protecting public safety through spectrum is to=20
give public safety officials more flexibility with existing allocated=20
spectrum, including the ability to lease the spectrum to others, says=20
Progress & Freedom Foundation Senior Fellow Tom Lenard. In comments filed=20
with the Federal Communications Commission last week, Lenard, PFF's vice=20
president for research, urges the agency to ensure cost-effective,=20
efficient use of existing public safety spectrum before awarding more.
[SOURCE: Progress & Freedom Foundation]
http://www.pff.org/news/news/2005/042805fcc-comments-tl.html

MANDATED ONLINE TAX COLLECTION MISGUIDED
Requiring compliance with the Streamlined Sales and Use Tax Agreement=20
(SSUTA) would be harmful to many states, yield little in additional tax=20
revenues, and undermine tax competition among states and jurisdictions,=20
says Progress & Freedom Foundation Senior Fellow Tom Lenard.
[SOURCE: Progress & Freedom Foundation]
http://www.pff.org/news/news/2005/050205milken.html

BOHN APPOINTED TO OPENING ON PUC
The five-member California Public Utilities Commission (PUC) regulates=20
utilities, telecommunications firms and railroads. Among its tasks is to=20
help find a new way to encourage power generation in California, help=20
decide whether to deregulate the electricity market for major customers and=
=20
whether to implement a telecommunications bill of rights. After Silicon=20
Valley entrepreneur Steve Poizner withdraw unexpectedly because his=20
financial holdings were too large to avoid conflicts of interest, CA Gov.=20
Arnold Schwarzenegger appointed John Bohn, the former head of Moody's=20
Investors Service and Reagan administration's Treasury Department official,=
=20
to the PUC. Michael Shames, director of the Utility Consumers' Action=20
Network in San Diego, criticized Schwarzenegger for appointing someone with=
=20
no apparent expertise in the complex world of utility regulation.
[SOURCE: Los Angeles Times, AUTHOR: Nicholas Riccardi]
http://www.latimes.com/business/printedition/la-fi-puc3may03,1,7359897.s...
?coll=3Dla-headlines-pe-business
(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.
--------------------------------------------------------------