Benton RSS Feed

New children's television rules go into effect tomorrow and there will be a=
=20
discussion about universal service on the Hill this week. For these and=20
other upcoming media policy events, see http://www.benton.org/calendar.htm

OWNERSHIP
Media Group Asks Supreme Court to Hear Ownership Case
FCC Dems Fear 'Stealth Airwaves Grab'
SBC, AT&T Boards Are Set To Vote on Merger Deal
Lee Enterprises to Buy Pulitzer Inc.
Groups Led by KKR, Comcast to Compete In Adelphia Bidding
Challenge to Laws That Shrink the Public Domain

CONTENT
Bush to Parents: 'Turn Off Indecency'
Pundit Payola: Williams, Gallagher Were Wrong, But What's Right?
Law Cautions Against Outside PR Spending -- Sort Of
Children's TV Fears a Funding Flap after =91Buster'
U.S. Students say Press Freedoms go Too Far

POLICYMAKERS/LOBBYING
Congress Proposes Tax on all Net, Data Connections
After Powell
Don't Be Fooled Again
Draft Cable Rate Rule Sent to 8th Floor
NCTA, Cities: Can You Hear Us Now?
B=92casters Ready to Storm the Hill
Will Franks Head NAB?
NCTA Taps McSlarrow

QUICKLY -- Why punish the technology?; Teens not as Web-savvy as Parents

OWNERSHIP

MEDIA GROUP ASKS SUPREME COURT TO HEAR OWNERSHIP CASE
The Tribune Company, Fox, NBC Universal and Viacom are asking the U.S.=20
Supreme Court to overturn the US Appeals Court Philadelphia's ruling that=20
blocks media companies from buying more local TV stations and newspapers.=20
The action comes after the US Solicitor General and the FCC decided not to=
=20
ask the High Court to overturn. The media groups argued that the appeals=20
court conclusion that spectrum scarcity justifies rational-basis review of=
=20
broadcast ownership restrictions directly conflicts with two decades of=20
decisions by the U.S. Appeals Court Washington, DC. They argue, =93This case=
=20
falls within each of the three circumstances that this court has already=20
indicated would separately justify reconsideration of the spectrum scarcity=
=20
rationale=94: 1) the FCC acknowledges that the prior cross-ownership rule=
and=20
local ownership restrictions perpetuated by the appeal court=92s decision=20
inhibits rather than increases diversity of viewpoints; 2) the FCC=92s order=
=20
confirms that broadcast channels are no longer uniquely important sources=20
of information; and 3) actions of Congress and the FCC =93signal=94 that=20
industry conditions have changed sufficiently to justify
reconsideration of whether broadcast speech deserves lesser First Amendment=
=20
protection. The broadcasters also questioned whether speech restrictions=20
can apply to newspaper owners that are limited in controlling broadcast=20
stations. =93Other courts of appeals have determined that ownership=20
regulations directed to particular industries and affecting speech require=
=20
heightened scrutiny,=94 the group said.
The Institute for Public Representation (IPR) at the Georgetown University=
=20
Law Center said if the Supreme Court overturns the appeals court decision=20
and adopts a more restrictive standard, the interpretation of the=20
Communications Act regulating telecom would be jeopardized. In an ex parte=
=20
filing at the FCC, IPR said the Supreme
Court taking on the FCC=92s case would put many =93important issues at risk=
=94=20
such as regulation of DTV, indecency and children=92s programming. That=92s=
one=20
reason the FCC decided not to appeal, an industry source said. It=92s not=20
known when the Supreme Court will decide whether to hear the media groups=92=
=20
case.
[SOURCE: Communications Daily, AUTHOR: Tania Panczyk-Collins]
(Not available online)
Also in --
WSJ:=20
http://online.wsj.com/article/0,,SB110712975573340603,00.html?mod=3Dtoda...
s_page_one

FCC DEMS FEAR 'STEALTH AIRWAVES GRAB'
FCC Commissioners Jonathan Adelstein and Michael Copps hailed the decision=
=20
by the Solicitor General=92s office not to appeal the court-ordered rewrite=
=20
of deregulatory FCC ownership rules, but warned against an industry=20
flanking maneuver. "I think there are companies out there who want to game=
=20
the process by having the Commission write quick rules,=94 Copps said. =93On=
e=20
by one and under the radar scope, and accomplish piecemeal what they=20
couldn't get whole. The American people are not served by a stealth=20
airwaves grab.=94
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
http://www.broadcastingcable.com/article/CA500095?display=3DBreaking+New...
ferral=3DSUPP
(free access for Benton's Headlines subscribers)

SBC, AT&T BOARDS ARE SET TO VOTE ON MERGER DEAL
On Sunday afternoon, the Wall Street Journal reported that the rumor was=20
becoming a reality: SBC had agreed in principle to purchase AT&T for=20
roughly $16 billion in shares and cash. The move still has to be approved=20
by the boards of directors from both companies and votes were scheduled=20
Sunday. In addition to board approval, the move will be subject to=20
regulatory approval. The deal, if completed, would mark the creation of the=
=20
largest U.S. telecom carrier with a leading presence in wireless as well as=
=20
corporate telecom services.
[SOURCE: Wall Street Journal, AUTHOR: Almar Latour almar.latour( at )wsj.com and=
=20
Shawn Young shawn.young( at )wsj.com ]
http://online.wsj.com/article/0,,SB110711095360640355,00.html
On Monday morning, WSJ reports deal is approved by boards.
http://online.wsj.com/article/0,,SB110711095360640355,00.html?mod=3Dtoda...
s_page_one
(requires subscription)
A big deal facing tough regulatory scrutiny -- is it worth it? Business=20
Week finds a number of analysts that say "No."
[SOURCE: BusinessWeek, AUTHOR: Steve Rosenbush; Catherine Yang]
http://www.businessweek.com/technology/content/jan2005/tc20050127_6124_t...
.htm
http://www.businessweek.com/technology/content/jan2005/tc20050128_2548_t...
.htm
WashPost:=
http://www.washingtonpost.com/wp-dyn/articles/A50006-2005Jan30.html
=
http://www.washingtonpost.com/wp-srv/business/daily/graphics/att_013105....
l
(AT&T timeline)
NYTimes: http://www.nytimes.com/2005/01/31/business/31phone.html
USAToday:=
http://www.usatoday.com/printedition/money/20050131/1b_sbc31.art.htm
LATimes:=20
http://www.latimes.com/business/printedition/la-fi-sbc31jan31,1,1235106....
y?coll=3Dla-headlines-pe-business

LEE ENTERPRISES TO BUY PULITZER INC
Midwest newspaper publisher Lee Enterprises Inc. is buying Pulitzer for=20
about $1.4 billion in cash, in a deal that would make it the country's=20
fourth-largest owner of daily newspapers. The purchase would increase Lee's=
=20
holdings to 58 daily papers in 23 states and raise its total daily=20
circulation to 1.7 million.
[SOURCE: Los Angeles Times, AUTHOR: Reuters]
http://www.latimes.com/business/printedition/la-fi-pulitzer31jan31,1,659...
.story?coll=3Dla-headlines-pe-business
(requires registration)

GROUPS LED BY KKR, COMCAST TO COMPETE IN ADELPHIA BIDDING
More than 10 bids are expected today in the sale of Adelphia=20
Communications, the nation's fifth-largest cable operator. Industry leaders=
=20
Comcast and Time Warner are combining for a bid for the entire company=20
while groups of small cable companies, teamed with private-equity firms,=20
are expected to bid on one or more of the seven clusters of cable systems=20
that Adelphia has created to encourage more active bidding. Adelphia is=20
estimated to be worth $15-19 billion and is not likely to accept a sale=20
unless bids reach at least $17.5 billion. The company is currently=20
operating under Chapter 11 bankruptcy-court protection.
[SOURCE: Wall Street Journal, AUTHOR: Peter Grant peter.grant( at )wsj.com &=20
Dennis K. Berman dennis.berman( at )wsj.com ]
http://online.wsj.com/article/0,,SB110713079317040628,00.html?mod=3Dtoda...
s_money_and_investing
(requires subscription)

CHALLENGES TO LAWS THAT SHRINK THE PUBLIC DOMAIN
The Brennan Center for Justice, the American Civil Liberties Union of=20
Northern California, and the nonprofit advocacy groups Public Knowledge,=20
the Center for the Public Domain, and the First Amendment Project filed an=
=20
amicus brief today in Kahle v. Ashcroft, arguing that Congress=92s=20
elimination of copyright renewal requirements in 1992 created serious First=
=20
Amendment problems by radically shrinking the public=92s access to works=
that=20
belong in the public domain.
[SOURCE: Brennan Center for Justice Press Release]
http://www.brennancenter.org/presscenter/releases_2005/pressrelease_2005...
8.html
See the full brief:
http://www.fepproject.org/courtbriefs/kahle.pdf

CONTENT

BUSH TO PARENTS: 'TURN OFF INDECENCY'
Free speech advocate President George Bush said that parents, not=20
government, are the "first line of responsibility when it comes to=20
protecting children from indecent TV programming. Parents should turn off=20
the TV, he said, when they see content that is not appropriate for their=20
kids. The government, can, he said, "at times, not censor, but call to=20
account programming that gets over the line." The President said that when=
=20
he interviews a new FCC Chairman, he will ask where he thinks that line is,=
=20
but later clarified that that was not a litmus test.
[SOURCE: Broadcasting&Cable, AUTHOR: Bill McConnell & John Eggerton]
http://www.broadcastingcable.com/article/CA499783?display=3DBreaking+New...
ferral=3DSUPP
(free access for Benton's Headlines subscribers)
See also --
Multichannel News:=20
http://www.multichannel.com/article/CA499977.html?display=3DBreaking+New...
ferral=3DSUPP
More on indecency legislation from LATimes:
http://www.latimes.com/business/printedition/la-fi-fcc31jan31,1,1305231....
y?coll=3Dla-headlines-pe-business

PUNDIT PAYOLA: WILLIAMS, GALLAGHER WERE WRONG, BUT WHAT'S RIGHT?
Most columnists agree that receiving money for supporting an Administration=
=20
point of view is wrong, but they seem fine with accepting fees to talk to=20
trade groups, issue-oriented organizations, and at universities -- and they=
=20
defended that practice. The amounts of money paid for these speeches can be=
=20
staggering and should spark questions of how influential outside fees can=20
be on columnists who can make up to $800,000/yr in "extra" income for these=
=20
speeches.
[SOURCE: Editor & Publisher, AUTHOR: Joe Strupp=
jstrupp( at )editorandpublisher.com]
http://www.editorandpublisher.com/eandp/news/article_display.jsp?vnu_con...
_id=3D1000779048

LAW CAUTIONS AGAINST OUTSIDE PR SPENDING -- SORT OF
"Appropriated funds may not be used to pay a publicity expert unless=20
specifically appropriated for that purpose," states a provision in the U.S.=
=20
Code. Well, there you have it, right? According to this 1913 law, you can't=
=20
hire PR firms to promote proposed laws. Perhaps, but the General=20
Accountability Office, which publishes a four-volume guide to=20
appropriations laws like this, has no enforcement power. Congress or the=20
administration imposes sanctions. The intent of that provision, according=20
to the GAO manual, is to prevent the use of publicity experts to bring=20
acclaim to an agency activity or to officials, rather than to advance the=20
real work of the agency. The law acknowledges, however, that "the effective=
=20
implementation of the duties of some agencies requires the acquisition and=
=20
dissemination of information." Indeed, over the past four years, agencies=20
have spent at least $254 million on 286 contracts with major PR agencies,=20
according to a recent analysis of federal contracting data by the=20
Democratic staff of the House Committee on Government Reform. Agencies=20
spent $88 million on such contracts in 2004, up from $39 million in 2000,=20
the last year of the Clinton administration.
[SOURCE: Washington Post, AUTHOR: Christopher Lee]
http://www.washingtonpost.com/wp-dyn/articles/A49757-2005Jan30.html
(requires registration)
More on paying for pundits --
USAToday:=
http://www.usatoday.com/printedition/news/20050131/a_capcol31.art.htm

CHILDREN'S TV FEARS A FUNDING FLAP AFTER 'BUSTER'
Education Secretary Margaret Spellings is sworn in today in Washington, but=
=20
she's already delivered a chilling message to the makers of children's TV.=
=20
In a letter to PBS last week, Spellings told PBS she had =93very serious=20
concerns=94 about an episode in which a little girl in Vermont introduces=20
cartoon bunny Buster Baxter to her mother and her mother's lesbian partner.=
=20
Spellings suggested that funding for future programming could be in=20
jeopardy. The episode was pulled, PBS says, before the letter was received.=
=20
But WGBH's vice president for children's programming, Brigid Sullivan,=20
believes the episode complies with the program's mission. The series, she=20
says, is a =93direct response to a request=94 from the Ready to Learn=
program,=20
which is administered by PBS on behalf of the Department of Education, for=
=20
a show about =93diversity and tolerance in modern America for school-age=20
children.=94 In the 40 Buster episodes that were made, families have=
included=20
Muslims, Orthodox Jews, Mormons and evangelical Christians. =93The show is=
=20
about children,=94 Sullivan says. =93It's not about their parents. It's=
about=20
letting children validate children as children, regardless of the family=20
they live in.=94
[SOURCE: USAToday, AUTHOR: Ann Oldenburg]
http://www.usatoday.com/printedition/life/20050131/d_bottomstrip31.art.htm
http://www.usatoday.com/printedition/life/20050131/d_pbsinside31.art.htm=20
(more on homosexuality and kids TV)

US STUDENTS SAY PRESS FREEDOMS GO TOO FAR
One in three U.S. high school students say the press ought to be more=20
restricted, and even more say the government should approve newspaper=20
stories before readers see them, according to a survey to be released today=
=20
by the John S. and James L. Knight Foundation. The survey =93confirms what a=
=20
lot of people who are interested in this area have known for a long time,=94=
=20
he says: Kids aren't learning enough about the First Amendment in history,=
=20
civics or English classes. It also tracks closely with recent findings of=20
adults' attitudes.
[SOURCE: USAToday, AUTHOR: Greg Toppo]
http://www.usatoday.com/printedition/life/20050131/bl_bottomstrip31.art0...

POLICYMAKERS/LOBBYING

CONGRESS PROPOSES TAX ON ALL NET, DATA CONNECTIONS
The Joint Committee on Taxation released a report last week that included a=
=20
suggestion to modify the an existing 3% telecommunications tax to cover=20
"all data communications services to end users," including broadband;=20
dial-up; fiber; cable modems; cellular; and DSL, or digital subscriber=20
line, links. Currently, the excise tax applies only to traditional=20
telephone service. But because of technological convergence and the=20
dropping popularity of landlines, the Congressional committee concluded in=
=20
its review of tax law reforms that it might make sense to extend the=20
100-year old levy to new technologies. The committee did not take a=20
position on whether Congress should approve such an extension and simply=20
listed it as an "option." It lists three different telecommunications tax=20
options, one of which would cover all data communications. A second choice=
=20
would extend the excise tax to cell phones and perhaps VoIP. The third=20
would clearly levy the charge on VoIP, including Internet-only phone calls=
=20
using services that do not touch the public telephone network. James Maule,=
=20
who teaches tax law at Villanova University, said the more extreme taxation=
=20
option may be a way for committee members to make the others "look a bit=20
more palatable. There's some psychology going on." "The odds of something=20
happening in 2005 that amends the tax law is extremely high," Maule said,=20
referring to President Bush's promise to revise the tax code. "I suspect=20
that (one of these options) is going to be tacked on."
[SOURCE: C-Net|News.com, AUTHOR: Declan McCullagh]
http://news.com.com/Congress+proposes+tax+on+all+Net%2C+data+connections...
0-1028_3-5555385.html?tag=3Dnefd.top
See the committee report at http://www.house.gov/jct/s-2-05.pdf

AFTER POWELL
Although he generally sides with broadcasters on decisions that affect=20
their business, FCC Commissioner Kevin Martin, the agreed-upon front-runner=
=20
to succeed current Chairman Michael Powell, may prove to be even tougher on=
=20
tougher on prime time TV sex and violence. If anything, Commissioner Martin=
=20
has expressed that the FCC did not go far enough in the last year to=20
discourage stations from airing shows inappropriate for kids. He would use=
=20
the agency=92s pulpit to persuade broadcasters to voluntarily dedicate an=20
hour of prime time each night to family-friendly programming. Martin also=20
wants the FCC to give TV affiliates the right to reject any network shows=20
they deem inappropriate for their viewers.
[SOURCE: Broadcasting&Cable, AUTHOR: Bill McConnell]
http://www.broadcastingcable.com/article/CA499967.html?display=3DNews&re...
al=3DSUPP
(free access for Benton's Headlines subscribers)
See also --
BusinessWeek:=20
http://www.businessweek.com/magazine/content/05_06/b3919055_mz011.htm

DON'T BE FOOLED AGAIN
[Commenary] In an age when our economy, our schools and our health care=20
system =AD indeed our national security =AD have become so dependent upon=
our=20
national communications infrastructure and the rules that guide its=20
operation, few new federal appointments will be as important as the Federal=
=20
Communications Commission Chairman. Lloyd suggests that the American public=
=20
deserves better than departing Chairman Michael Powell. The Senate must=20
take seriously its responsibility to review and consider the next=20
appointment, and make certain that the public interest it is not ignored=20
again. We need a true public servant at the FCC, someone with heart and=20
head enough to provide all Americans with an information infrastructure=20
that serves them as citizens and as consumers.
[SOURCE: Center for American Progress, AUTHOR: Mark Lloyd]
http://www.americanprogress.org/site/pp.asp?c=3DbiJRJ8OVF&b=3D307119

DRAFT CABLE RATE RULE SENT TO 8TH FLOOR
Cable operators would like the FCC to make a determination that when direct=
=20
broadcast satellite (DBS) penetration exceeds the 15% threshold, =93effectiv=
e=20
competition=94 exists and cable operators should qualify for exemptions from=
=20
local rate regulation. Local governments vigorously oppose such a move,=20
contending that freeing cable operators from rate regulation would harm=20
consumers. Local municipalities still regulate rates for basic (not=20
expanded basic) cable services. Apparently a draft order on the issue is=20
circulating among the five FCC commissioners and a decision could come=20
before Chairman Powell's departure (at least, that's what the cable=20
industry is hoping). There are a number of states in which the 15%=20
threshold has already been reached. However, a new FCC study raises=20
questions about DBS as an effective competitive factor for cable because of=
=20
the =93substantial switching costs to move from cable to DBS services.=94=
The=20
study, which comes on the heels of the anticipated
release of the FCC=92s competition in video report, says consumers view DBS=
=20
as a substitute for cable for higher-quality premium services and when=20
facing large increases for basic services. But when prices are lowered,=20
consumers don't opt for satellite because of the long-term contracts for=20
DBS service that increase the cost of
switching service.
[SOURCE: Communications Daily, AUTHOR: Anne Veigle]
(Not available online)

NCTA, CITIES: CAN YOU HEAR US NOW?
The cable industry is reaching out to local governments to test whether=20
they can forge an alliance to block Verizon Communications from entering=20
the cable business under liberalized state laws designed to accommodate the=
=20
phone giant=92s broadband-deployment plans. Cable=92s relationship with=
cities=20
and towns has never been easy, and it probably reached its nadir three=20
years ago, when cable backed the Federal Communications Commission=92s=20
decision to deny local governments about $500 million in annual cable-modem=
=20
fees. But in the policy world, no one is your friend or enemy forever. So=20
discussions began a few weeks ago at National Cable & Telecommunications=20
Association headquarters in Washington (DC) and included representatives=20
from the National League of Cities, the National Association of Counties=20
and the U.S. Conference of Mayors.
[SOURCE: Multichannel News, AUTHOR: Ted Hearn]
http://www.multichannel.com/article/CA499936.html?display=3DBreaking+New...
ferral=3DSUPP
(free access for Benton's Headlines subscribers)

B'CASTERS READY TO STORM THE HILL
Capitol Broadcasting Company in Raleigh (NC) plans to take the fight for=20
"multicast must-carry" to Capitol Hill. On Feb. 10, the FCC is planning to=
=20
vote on a proposal that would ban TV stations from demanding cable carriage=
=20
of more than one digital-TV programming service. Insiders say Chairman=20
Powell has the three votes needed to pass the ban. Broadcasters argued that=
=20
multicasting is an ideal way for local TV stations to expand=20
local-programming options. But those new services are not viable=20
financially unless cable operators are forced to carry them. Capitol=92s=20
Raleigh CBS affiliate, WRAL, provides HDTV programming and a separate=20
digital news channel. Time Warner Cable carries both services in the=20
market. =93The question is: In a world where 85% of our viewers are=20
multichannel subscribers, could we afford to program the WRAL NewsChannel=20
without cable carriage? The answer is no,=94 Smith told the FCC. Smith said=
=20
that without multicast must-carry, small, independent TV stations could not=
=20
negotiate cable carriage of multiple services, but stations owned by ABC,=20
NBC, CBS and Fox have the market clout to do so. Whether the independently=
=20
owned affiliates of the =93Big Four=94 could bargain for multiple carriage=
=93is=20
a toss-up,=94 Smith said. She argued that the independent affiliates would=
=20
likely have to partner with the Big Four networks to force carriage=20
concessions from cable, but such a result was undesirable =93because one=20
thing all affiliates fear is ceding more power to the networks to control=20
our programming.=94
[SOURCE: Multichannel News, AUTHOR: Ted Hearn]
http://www.multichannel.com/article/CA499960.html?display=3DBreaking+New...
ferral=3DSUPP
(free access for Benton's Headlines subscribers)

WILL FRANKS HEAD NAB?
Insiders expect National Association of Broadcasters President Eddie Fritts=
=20
to announce that he plans to resign during the organization's annual=20
convention this April in Las Vegas. Fritts, 63, has told confidants he no=20
longer wants to contend with divisions between the group's TV and radio=20
membership. Lobbyists for several TV-station groups say the leading=20
candidate to succeed him is CBS Executive Vice President Martin Franks, a=20
Washington veteran who currently heads the network's digital-TV operations,=
=20
programming standards and practices, and other special projects for parent=
=20
company Viacom. Franks' current duties keep him on top of the most critical=
=20
and politically controversial issues that broadcasters grapple with,=20
including the switch to digital TV and the FCC's indecency crackdown.
[SOURCE: Broadcasting&Cable, AUTHOR: Bill McConnell]
http://www.broadcastingcable.com/article/CA499965.html?display=3DNews&re...
al=3DSUPP
(free access for Benton's Headlines subscribers)

NCTA TAPS MCSLARROW
On March 1, senior Energy Department official Kyle McSlarrow will become=20
president of the National Cable & Telecommunications Association (NCTA).=20
McSlarrow, who resigned from his former post two weeks ago, served as chief=
=20
of staff to the late Sen. Paul Coverdell and as deputy chief of staff and=20
chief counsel to former Senate Majority Leaders Bob Dole and Trent Lott. He=
=20
was mainly picked for his Republican ties to Congress and the White House;=
=20
he has no experience in cable issues.
[SOURCE: Broadcasting&Cable, AUTHOR: Bill McConnell]
http://www.broadcastingcable.com/article/CA499968?display=3DNews&referra...
SUPP
(free access for Benton's Headlines subscribers)
See NCTA Press Release:=20
http://www.ncta.com/press/press.cfm?PRid=3D571&showArticles=3Dok

QUICKLY

WHY PUNISH TECHNOLOGY?
[Commentary] Ever since Napster got closed down, the content industry's=20
strategy for dealing with the peer-to-peer challenge can be summed up in=20
three words: Sue the bastards. Everyone of sane mind can agree there's a=20
need to address digital piracy. But how about trying something more nuanced=
=20
than a sledgehammer approach?
[SOURCE: C-Net|News.com, AUTHOR: Charles Cooper]
http://news.com.com/Why+punish+the+technology/2010-1071_3-5553805.html?tag=
=3Dnefd.ac

STUDY SHOWS SOME TEENS NOT AS WEB-SAVVY AS PARENTS
A study by the Nielsen Norman Group found that, contrary to stereotype,=20
teens as a group are not as adept as adults in navigating the Web.=20
Additional findings in the study: 1) Some Web site features tend to turn=20
off teens: complex or incomplete content, long downloading times and=20
confusing navigation. 2) Teens tolerate ads more than adults, though=20
overkill is a risk. 3) Teens tend to be apprehensive about downloading=20
plug-ins and clicking on unknown links. The main reason: They fear viruses.=
=20
4) The word =93kid=94 is a teen-repellent.
[SOURCE: USAToday, AUTHOR: Edward C. Baig]
http://www.usatoday.com/printedition/money/20050131/1b_teens31.art.htm
--------------------------------------------------------------
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.
--------------------------------------------------------------

We will see you again FRIDAY; we're off to Ithaca!=20
(http://www.ithaca.edu/news/article.php?id=3D1603)

POLICYMAKERS
Powell Heads for Exit
Challenges Await Powell's FCC Successor

OWNERSHIP
Newspapers Face Antitrust Scrutiny
EchoStar's Satellite Purchase Not Likely a Cure-All
France Telecom Might Acquire Rest of Equant

CABLE
Cable, DOJ Pitch Modem Dereg
Cable Could Rule if it Plays its Cards Right
Comcast Gets Breather In McHenry

CONTENT
Tech Firms to Seek Legal Protection From Pirating
Osama Who? When No News Is 'Bad News'
Churches Spar with Media over Advertising
The New Wave of Homegrown Fare
Under-Used Power of the News
'NYPD Blue' Producer Deems TV Too 'Conservative'

INTERNET
Internet News Sites Are Back in Vogue
Intel Pushes D.C. Agenda
Search Engine Users
Hansan Holds E-Advocacy Advantage

QUICKLY -- Selling Advertisers on Radio; Music to Cell Phones; Summit on=20
Children, Media and Literacy; America at a Crossroads; How to Read a Column

REACTION TO POWELL ANNOUNCEMENT

POLICYMAKERS

POWELL HEADS FOR EXIT
As we reported Friday morning, FCC Chairman Michael Powell has announced=20
his resignation and will leave the Commission is March. Powell, 41, joined=
=20
the FCC in 1997, a Republican nominee of President Clinton, who had=20
previously appointed him chief of staff of the Justice Department=92s=20
Antitrust Division. President Bush elevated Powell to FCC chairman a few=20
days after his 2001 inauguration. Later, Powell was confirmed for a=20
five-year term, ending June 30, 2007. Powell=92s biggest controversy came in=
=20
June 2003, when he approved new broadcast ownership rules that allowed one=
=20
company to own three TV stations, eight radio stations, the cable system,=20
and the dominate daily newspaper in the country=92s largest markets. The=20
ruling sparked outrage among public-interest and consumer groups, and many=
=20
Capitol Hill lawmakers felt the FCC has pushed too far. Powell was a First=
=20
Amendment purist who had to change course in response to the proliferation=
=20
of reality TV programs with crass sexual content, shock jocks with toilet=20
mouths and a Super Bowl with a soft-porn halftime show finale. Although=20
Powell=92s preference was to let the media run wild under its First=
Amendment=20
free speech protections, he also recognized that the FCC had broadcast=20
indecency laws to enforce. =93Michael Powell had the right goal --=
expediting=20
the introduction of advanced technologies. He had the wrong mechanism --=20
letting the big boys do it,=94 said Andrew Jay Schwartzman, president of=20
Media Access Project, a group that helped block Powell=92s media-ownership=
=20
rules. =93He was good at philosophy, but bad at execution. He is a fine=20
speechmaker, but a poor politician.=94
* URLs below this summary will take you to additional coverage. For a=20
collection of responses to Chairman Powell's departure, see the end of this=
=20
email.
[SOURCE: Multichannel News, AUTHOR: Ted Hearn]
http://www.multichannel.com/article/CA498449.html?display=3DTop+Stories&...
rral=3DSUPP
(free access for Benton's Headlines subscribers)
* NYTimes editorial: http://www.nytimes.com/2005/01/24/opinion/24mon2.html
* News.com:=20
http://news.com.com/Mixed+legacy+for+FCCs+Powell/2100-1033_3-5545030.htm...
g=3Dnefd.top
* USA Today:=20
http://www.usatoday.com/printedition/money/20050124/1b_powellcover24.art...
http://www.usatoday.com/printedition/money/20050124/2b_powellb0x24.art.htm
=
=
http://www.usatoday.com/printedition/money/20050124/2b_powellreaction24....
.htm
* Alternet: http://www.alternet.org/mediaculture/21057/
* eSchool News: http://www.eschoolnews.com/news/showstory.cfm?ArticleID=3D54=
67
* Telephony:=20
http://telephonyonline.com/regulatory/news/powell_resign_fcc_012105/
* Beyond Janet Jackson's Breast: A Defense of Chairman Powell
"Mr Powell has endured one mortifying policy defeat after another. From a=20
battle over America's media-ownership rules to a scrap about telecoms=20
regulation, the courts, Congress, the media and even fellow Republican=20
commissioners have taken turns sticking the knife into the FCC's=20
soft-bellied chairman," writes the Economist, which defends Powell for his=
=20
efforts to bring the agency into step with the digital age.
[The Economist]
http://www.economist.com/people/displayStory.cfm?story_id=3D3576578

CHALLENGES AWAIT POWELL'S SUCCESSOR
The agenda for the next FCC Chairman will include: the rapid transition of=
=20
broadcasts to digital signals; the financial problems of the Universal=20
Service Fund, which subsidizes phone service for rural and low-income=20
Americans; and the haphazard system by which different telephone companies=
=20
compensate each other for completing their calls. The FCC faces a fight in=
=20
trying to force broadcasters to return old, analog spectrum by a certain=20
date and to switch completely to digital transmissions, which require much=
=20
less bandwidth. Mr. Powell's staff had been pushing last year to set 2009=20
as the year for the handover but backed off because of industry opposition=
=20
and the press of other business. On media consolidation, the FCC must=20
decide whether to seek Supreme Court review of an appeals-court ruling that=
=20
tossed out rules easing restrictions on media ownership. Without a=20
successful appeal, the five-member commission must begin working on=20
media-ownership rules all over again. Besides Chairman Powell, Commissioner=
=20
Kathleen Abernathy, his closest ally, also is widely expected to leave in=20
coming months.
[SOURCE: Wall Street Journal, AUTHOR: Anne Marie Squeo=20
annemarie.squeo( at )wsj.com]
http://online.wsj.com/article/0,,SB110652198940933591,00.html?mod=3Dtoda...
s_page_one
(requires subscription)
See also --
FCC Finds Itself Up to Its Neck in Hot Issues
http://www.latimes.com/business/printedition/la-fi-fcc24jan24,1,2091667....
y?coll=3Dla-headlines-pe-business
Can Howard Stern now relax?
http://news.com.com/Can+Howard+Stern+now+relax/2010-1071_3-5545890.html?...
=3Dnefd.ac
FCC Faces A New Set of Challenges
http://www.nytimes.com/2005/01/24/business/media/24powell.html

OWNERSHIP

NEWSPAPERS FACE ANTITRUST SCRUTINY
Industry watchers are expecting a concentration of newspaper ownership this=
=20
year, but don't you worry, the Justice Department is all over it. The=20
Justice Department is investigating Gannett's proposed buyout of HomeTown=20
Communications Network, a Midwest community-newspaper publisher based in=20
Livonia (MI), and has opened a preliminary inquiry into the New York=20
Times's plans to take a 49% stake in Metro Boston, a free daily that=20
competes with the Boston Globe, which is also owned by the Times. In some=20
markets, advertisers have told the Justice Department that the pending=20
deals could give local publishers enough clout to raise ad rates in the=20
cities they serve. Competitors in Detroit and Boston, including the Boston=
=20
Herald, have also told the Justice Department that they believe the deals=20
would violate antitrust law. Bids for Pulitzer -- which owns the Arizona=20
Daily Star, St. Louis Post-Dispatch and other dailies -- are due today and=
=20
analysts have said that the sale could fetch $1.5 billion, plus the=20
assumption of debt of about $300 million. Gannett, the nation's largest=20
newspaper publisher, is widely expected to be one of the leading bidders=20
for the company, continuing its role as an aggressive nationwide acquirer=20
of newspapers. Some analysts expect the Pulitzer deal to herald a new round=
=20
of buying.
[SOURCE: Wall Street Journal, AUTHOR: James Bandler james.bandler( at )wsj.com]
http://online.wsj.com/article/0,,SB110652653344033690,00.html?mod=3Dtoda...
s_page_one
(requires subscription)

ECHOSTAR'S SATELLITE PURCHASE NOT LIKELY A CURE-ALL
EchoStar Communications's $200 million pact to purchase CableVision's Voom=
=20
satellite capacity may not be all the company needs to compete better with=
=20
DirecTV, which has more subscribers and deeper pockets. DirecTV, for=20
example, is challenging two of EchoStar's historical strengths: an=20
extensive rural-customer base and strong offerings of foreign programming=20
to ethnic groups in the U.S. By buying a top-of-the-line satellite that=20
will increase the number of channels Echostar can offer, the company may be=
=20
able to counter by expanding his lineup of foreign-television fare. But the=
=20
company may have to spend close to $1 billion by mid-2006 to comply with a=
=20
Congressional mandate to stop using dual antennas to serve some=20
subscribers. Once that practice is phased out, EchoStar still will face=20
escalating pressure to expand its satellite fleet to keep up with the=20
ambitious plans laid out by DirecTV, the No. 1 direct-to-home satellite=20
broadcaster. DirecTV has projected launching over the next few years at=20
least five new satellites that will allow it to deliver well over 1,000=20
high-definition channels. The initiative will come at a cost of roughly=20
$1.5 billion.
[SOURCE: Wall Street Journal, AUTHOR: Andy Pasztor andy.pasztor( at )wsj.com]
http://online.wsj.com/article/0,,SB110652149119533565,00.html?mod=3Dtoda...
s_page_one
(requires subscription)

FRANCE TELECOM MIGHT ACQUIRE REST OF EQUANT
France Telecom is expected to announce as early as today a plan to buy the=
=20
46% of telecom-services company Equant it doesn't already own, say people=20
familiar with the matter. Netherlands-based Equant provides=20
telecommunications services to large corporations, and was hit hard=20
following the collapse of the telecom investing bubble in the early part of=
=20
the decade. The competitive pressure in the global business-communications=
=20
industry in which Equant operates has ratcheted up since November when=20
France Telecom's British rival BT Group purchased U.S.-based Infonet=20
Services. In addition to BT Group, Equant also competes with AT&T and MCI.
[SOURCE: Wall Street Journal, AUTHOR: Dennis K. Berman=20
dennis.berman( at )wsj.com, Jason Singer jason.singer( at )wsj.com & Cassell=20
Bryan-Low cassell.bryan-low( at )wsj.com ]
http://online.wsj.com/article/0,,SB110652070909833534,00.html?mod=3Dtoda...
s_page_one
(requires subscription)

CABLE

CABLE, DOJ PITCH MODEM DEREG
Providing high-speed Internet access should not trigger mandates designed=20
to open cable networks to all data competitors, the cable industry told the=
=20
U.S. Supreme Court in a filing last Tuesday. The National Cable &=20
Telecommunications Association, joined by three major cable companies,=20
asked the high court to shield cable-modem service from forced-access=20
mandates and back deregulatory policies adopted by the Federal=20
Communications Commission in March 2002. In its own brief in the case, the=
=20
Justice Department argued that application of open-access rules would raise=
=20
consumer rates and freeze cable=92s investment in broadband facilities. In=
=20
addition to having to open their lines, cable operators would be required=20
to contribute modem revenue to a telephone-subsidy program, perhaps pay=20
higher telephone pole-attachment fees and would need to absorb the cost of=
=20
engineering their networks for interconnection with other common carriers,=
=20
the DOJ said. =93Classifying cable-modem service as a telecommunications=20
service would drastically change the regulatory environment for cable-modem=
=20
service,=94 the DOJ said.
[SOURCE: Multichannel News, AUTHOR: Ted Hearn]
http://www.multichannel.com/article/CA498444.html?display=3DTop+Stories&...
rral=3DSUPP
(free access for Benton's Headlines subscribers)

CABLE COULD RULE IF IT PLAYS ITS CARDS RIGHT
Consulting firm PricewaterhouseCoopers is offering advise to cable=20
companies in a new report, thinking they can beat the phone giants in the=20
race to dominate home entertainment and communications. The report urges=20
operators to roll out packages of sophisticated video, Internet and phone=20
services before companies such as BellSouth, SBC and Verizon complete a $10=
=20
billion investment in fiber-optic lines. Those lines will let them offer=20
cablelike TV along with phone and Internet services that will rival bundles=
=20
from cable operators, which are beginning to add phone service. See more at=
=20
the URL below.
[SOURCE: USAToday, AUTHOR: David Lieberman]
http://www.usatoday.com/printedition/money/20050124/1b_cableoutlook24.ar...
m

COMCAST GETS BREATHER IN MCHENRY
The McHenry County (IL) Board agreed to postpone the vote on a resolution=20
that called for a federal probe of cable rates in the vast majority of=20
markets. The board, made up entirely of Republicans, will wait while cable=
=20
operator Comcast come up with some excuses for -- um, er -- while Comcast=20
explains recent system upgrades and rate increases. Illinois state Sen.=20
Pamela Althoff, a former cable broker and system investor, said she stepped=
=20
in to mediate differences between Comcast and county officials pressing for=
=20
the rate probe. A fast-growing community of 280,000, McHenry is not fertile=
=20
soil for a cable-rate rebellion. But Comcast=92s system upgrades --=
something=20
the company promised to do when it acquired the property -- and rate hikes=
=20
angered some board members, who felt the channel additions did not justify=
=20
the rise in monthly bills.
[SOURCE: Multichannel News, AUTHOR: Ted Hearn]
http://www.multichannel.com/article/CA498350.html?display=3DPolicy&refer...
=3DSUPP
(free access for Benton's Headlines subscribers)

CONTENT

TECH FIRMS TO SEEK LEGAL PROTECTION FROM PIRATING
The Supreme Court is scheduled to hear arguments March 29 in a suit brought=
=20
by the motion picture and recording industries against Grokster, one of the=
=20
leading "peer-to-peer" filing-sharing services. Representatives of all=20
sides on the issue agree that the case could determine the fate of services=
=20
such as Grokster, KaZaa and Morpheus, which in the eyes of the=20
entertainment industry are responsible for the pirating of millions of=20
dollars in losses annually. Several large technology corporations will urge=
=20
the U.S. Supreme Court today to continue to shield businesses and=20
innovators from legal responsibility if their products or services are used=
=20
by consumers for illegal acts. The companies, including industry giants=20
Microsoft, Yahoo, Google, America Online and Apple Computer, will argue in=
=20
court filings that the innovations that have helped fuel U.S. economic=20
growth could grind to a halt if protections from liability were stripped=20
away. At issue is the continuing popularity of Internet file-sharing=20
services, whose software lets users swap digital music, videos and software=
=20
regardless of whether they are copyrighted works that should be paid for=20
each time they are sent to another consumer.
[SOURCE: Washington Post, AUTHOR: Jonathan Krim]
http://www.washingtonpost.com/wp-dyn/articles/A31332-2005Jan23.html
(requires registration)
See also --
USAToday:=
http://www.usatoday.com/printedition/money/20050124/2b_riaa24.art.htm
Reuters:
http://www.reuters.com/newsArticle.jhtml;jsessionid=3D1HRYYHRXO3GCMCRBAE...
A?type=3DinternetNews&storyID=3D7400119

OSAMA WHO? WHEN NO NEWS IS 'BAD NEWS'
A look at the business of news and how business news limits the information=
=20
delivered to us on television newscasts. Former-CBS foreign correspondent=20
Tom Fenton, in his forthcoming book "Bad News," castigates network news for=
=20
failing to adequately cover the rest of the world. The book is a stinging=20
indictment that gains force from his quarter-century of service in CBS's=20
London bureau. Fenton blames "corporate greed," saying he was "beaten down=
=20
by the corporate bean counters" and had "so many of my stories rejected" in=
=20
the decade before 9/11. CBS's London bureau, he writes, "doesn't do much=20
reporting any more. What it does is called packaging," assembling video and=
=20
facts gathered by outside organizations.
[SOURCE: Washington Post, AUTHOR: Howard Kurtz]
http://www.washingtonpost.com/wp-dyn/articles/A31306-2005Jan23.html
(requires registration)

CHURCHES SPAR WITH MEDIA OVER ADVERTISING
As religion moves more overtly into public life, its reception in the major=
=20
media has not always been warm. Churches and religious publishers reaching=
=20
out to the "unchurched" - those who may be spiritually inclined but=20
institutionally alienated - are finding that some media are rejecting their=
=20
advertising dollars. The United Church of Christ (UCC) and the United=20
Methodist Church (UMC) have been told "no," as has Zondervan, the leading=20
Bible publisher. Media outlets have the right to decide what they publish=20
or broadcast, but religious groups say the media are practicing a form of=20
censorship that is keeping them out of the marketplace of ideas. This is=20
not fair, they say, nor does it fulfill the media's responsibility to the=20
public.
[SOURCE: The Christian Science Monitor, AUTHOR: Jane Lampman]
http://www.csmonitor.com/2005/0124/p11s01-lire.html

THE NEW WAVE OF HOMEGROWN FARE
How do you compete with national programming like Oprah? Go local, of=20
course. Station managers nationwide are taking a hard look at their balance=
=20
of local and syndicated shows. Syndication costs are skyrocketing, yet hits=
=20
are rare. Stations spend heavily on syndicated shows -- upward of $100,000=
=20
a week in bigger markets. Plus, they often turn over half of the show's ad=
=20
time to syndicators in so-called barter deals. As stations cope with a=20
dearth of syndication hits and fend off cable networks, they've found local=
=20
fare a potent weapon. =93Broadcasters will stay alive by creating content=20
that resonates with their communities,=94 says Stacey Lynn Koerner,=20
Initiative Media's EVP of global research. =93That makes stations a=
must-have=20
for viewers and advertisers.=94 The local programming being created is extra=
=20
newscasts and lifestyle shows.
[SOURCE: Broadcasting&Cable, AUTHOR: Allison Romano]
http://www.broadcastingcable.com/article/CA498370.html?display=3DNews&re...
al=3DSUPP
(free access for Benton's Headlines subscribers)

UNDER-USED POWER OF THE NEWS
While some stories gets lots of coverage, too many remain under-covered.=20
Doctors Without Borders released its 7th annual list of the year's Top 10=20
Most Underreported Humanitarian Stories. In a host of African countries,=20
North Korea, Colombia, Chechnya and elsewhere, lives are being cruelly cut=
=20
short by a staggering array of woes, but we remain largely ill-informed=20
about them. Last year, the Big Three nightly newscasts didn't air=20
significant reports on any of these regions, save Chechnya and North=20
Korea=97and the latter drew attention because of its nuclear threat, not its=
=20
humanitarian crisis. But they did devote plenty of attention to Martha=20
Stewart and Janet Jackson.
[SOURCE: Broadcasting&Cable, AUTHOR: J. Max Robins]
http://www.broadcastingcable.com/article/CA498463.html?display=3DNews&re...
al=3DSUPP
(free access for Benton's Headlines subscribers)
See also --
Christian Science Monitor:=
http://www.csmonitor.com/2005/0124/p09s02-coop.html

'NYPD BLUE' PRODUCER DEEMS TV TOO 'CONSERVATIVE'
Twelve years ago, Steven Bochco hoped his TV drama NYPD Blue would open the=
=20
door for more sophisticated prime time drama. But the pendulum has swung in=
=20
the opposite direction in the past five years, he says. After the=20
controversy generated in large part by Janet Jackson's "wardrobe=20
malfunction" during last year's Super Bowl halftime show telecast on CBS,=20
NYPD Blue has had to fight with ABC over content issues that never were=20
questioned in the past. Ultimately, he said, TV will go back to allowing=20
more adult drama. "You're never going to put the genie back in the bottle,"=
=20
Bochco said. "We're never going to see television go back to what it was 20=
=20
years ago."
[SOURCE: Hollywood Reporter/Reuters]
http://au.news.yahoo.com/050121/11/sotu.html

INTERNET

INTERNET NEWS SITES ARE BACK IN VOGUE
Internet news and information sites, long thought to be dot-gone relics of=
=20
1999, are making a big comeback in 2005. Online advertising is expected=20
reach $9.7 billion in 2004, or about 3.7% of United States advertising=20
spending, according to a recent Merrill Lynch report. Still, that number is=
=20
expected to grow 19% this year as the nation's largest advertisers shift=20
budgets from print and network television to cable and the Internet, the=20
report said. As a result, publishers are being forced to confront a=20
potential advertising inventory crunch. There is no physical limitation to=
=20
the number of Web pages, of course, but advertisers want to be placed on=20
the most popular pages and those which cater to their most profitable=20
audiences. And those kind of pages are in shorter supply.
[SOURCE: New York Times, AUTHOR: Eric Dash]
http://www.nytimes.com/2005/01/24/technology/24marketwatch.html
(requires registration)

INTEL PUSHES DC AGENDA
Suffering eroding market share in its core business of supplying=20
microprocessors for PCs, Intel is trying to compensate by launching=20
products that will compete with TV stations and cable operators. The=20
company is waging three major policy fights against the TV business. One=20
Intel priority is to push the FCC, over broadcasters' objections, to make=20
TV stations share their channel space with high-speed wireless networks=20
that city government or other operators could set up without bothering to=20
get a license. The company is also trying to persuade Congress and the FCC=
=20
to set a quick deadline for making stations go all-digital and return their=
=20
old analog channels to the government. Intel is taking on cable operators,=
=20
too, by calling on the government to stick with rules designed to create=20
retail competition to the leased set-top boxes that have fattened=20
cable-industry profits for decades.
[SOURCE: Broadcasting&Cable, AUTHOR: Bill McConnell]
http://www.broadcastingcable.com/article/CA498462.html?display=3DNews&re...
al=3DSUPP
(free access for Benton's Headlines subscribers)

SEARCH ENGINE USERS
A new nationwide survey by the Pew Internet & American Life Project shows=20
that Internet users are extremely positive about search engines and the=20
experiences they have when searching the Internet. But these same satisfied=
=20
Internet users are generally unsophisticated about why and how they use=20
search engines. They are also strikingly unaware of how search engines=20
operate and how they present their results.
[SOURCE: Pew Internet & American Life Project Press Release, AUTHOR:=20
Deborah Fallows]
http://www.pewinternet.org/PPF/r/146/report_display.asp

HANSAN HOLDS E-ADVOCACY ADVANTAGE
If you've ever e-mailed your representatives or learned about them online,=
=20
chances are that you did so through Capitol Advantage without knowing it.=20
Capitol Advantage LLC all but owns the lucrative market in congressional=20
directories and transformed that prosaic business into a rudiment of=20
Internet lobbying, which is now the fastest growing and arguably the most=20
potent form of persuasion in the nation's capital. Capitol Advantage wasn't=
=20
the first company to use a Zip code system (though it popularized it). It=20
isn't the only firm that facilitates e-mailing to Congress (though it is,=20
by far, the largest.) Yet its program's simplicity, accuracy and low cost=20
have made it a foundation of cyber-democracy. Learn more about the=20
company's founder, Robert Hansan.
[SOURCE: Washington Post, AUTHOR: Jeffrey H. Birnbaum]
http://www.washingtonpost.com/wp-dyn/articles/A31160-2005Jan23.html
(requires registration)

QUICKLY

Infinity Unveils Campaign to Get Advertisers to Tune In to Radio
Starting today, Viacom's Infinity Broadcasting will splash ads touting the=
=20
benefits of radio ad campaigns across the pages of magazines like Brandweek=
=20
and Advertising Age. It is highlighting the benefits of interactive=20
advertising, like a recent campaign that got radio listeners to log onto a=
=20
Web site, answer questions about themselves and get matched up with the car=
=20
that best suits their personality. The ad helped sell thousands of cars=20
over a four-week period in the summer for DaimlerChrysler AG. The campaign=
=20
comes as radio companies are fighting an advertising malaise and growing=20
competition from new satellite radio broadcasters. Infinity's approach is=20
very different from that of rival Clear Channel Communications Inc., which=
=20
last year launched a high-profile "Less Is More" campaign aimed at cutting=
=20
the number of ads on the radio as a way of increasing the value and impact=
=20
of the spots that air. Large numbers of ads can lead listeners to change=20
stations or ditch the radio altogether for CDs or satellite radio. Infinity=
=20
is also trying to focus on bigger markets by selling off or trading away=20
some of its smaller-market stations. And it is experimenting with new=20
formats to boost listener ratings, and therefore advertising dollars.=20
Earlier this month, it took a once-influential alternative-rock station in=
=20
Washington, WHFS, and flipped it to Spanish-language pop.
[SOURCE: Wall Street Journal, AUTHOR: Sarah McBride sarah.mcbride( at )wsj.com]
http://online.wsj.com/article/0,,SB110652400965733657,00.html?mod=3Dtoda...
s_marketplace
(requires subscription)

Face the Music, Wireless Carriers
[Commentary] The cellular industry in Asia and Europe is doing fine=20
supplying mobile users with tunes. US outfits ought to stop blocking the=20
service.
[SOURCE: BusinessWeek, AUTHOR: Steve Rosenbush]
http://www.businessweek.com/technology/content/jan2005/tc20050114_5688_t...
.htm

Summit on Children, Media and Literacy
The U.S. Department of Education and PBS are hosting a Ready To Learn=20
summit titled "A Child's Life: Learning, Literacy and the Role of the=20
Media," to be held on Feb. 3-4, 2005 at the Marriott Waterfront Hotel in=20
Baltimore, MD. Aiming to examine the impact of media on children's=20
literacy skills, the invitation-only event offers participants an=20
opportunity to learn about and exchange information on current research,=20
insights and future projections as well as lay a foundation to forge new=20
partnerships among the public broadcasting, reading research, technology=20
and entertainment fields.
http://www.pbs.org/aboutpbs/news/20050119_pbsdepted.html

America at a Crossroads
The war-time experiences of American soldiers, the high-stakes=20
international struggle for the heart of Islam, the competing demands of=20
security and civil liberty, the trial of Saddam Hussein, and our nation=92s=
=20
readiness for terrorist attacks -- are among the issues that will be=20
explored in films funded by the Corporation for Public Broadcasting through=
=20
its America at a Crossroads initiative. CPB announced today that it intends=
=20
to award research and development grants to ten production teams, and=20
expects to announce about 25 additional R&D grants in coming weeks.
[SOURCE: Corporation for Public Broadcasting Press Release]
http://www.cpb.org/programs/pr.php?prn=3D392

How to Read a Column
As he steps out the door, William Safire offers some advise to readers.
http://www.nytimes.com/2005/01/24/opinion/24safire1.html

REACTION TO POWELL ANNOUNCEMENT

Powell's Statement
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-256206A1.pdf
Highlights of tenure
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-256206A2.pdf
Commissioner Kathleen Q. Abernathy
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-256210A1.pdf
Commissioner Michael Copps
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-256208A1.pdf
Commissioner Kevin Martin
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-256212A1.doc
Commissioner Jonathan Adelstein
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-256213A1.doc

Children Now
http://www.childrennow.org/newsroom/news-05/pr-01-21-05.cfm

Public Knowledge
http://www.publicknowledge.org/pressroom/releases/pressrelease.2005-01-2...
38977060

Free Press
http://www.freepress.net/action/newFCCchair

Common Cause
http://www.commoncause.org/site/apps/nl/content2.asp?c=3DdkLNK1MQIwG&b=3...
883&ct=3D352822

Alliance for Better Campaigns
http://www.bettercampaigns.org/press/release.php?ReleaseID=3D68

Center for Creative Voices in Media
http://www.creativevoices.us/php-bin/news/showArticle.php?id=3D103&PHPSE...
=3D97c82093988d0478aa5de9f81ce5b001

Cato
http://www.cato.org/tech/tk-index.html

Bunnie Riedel
http://www.riedelcommunications.blogspot.com/

--------------------------------------------------------------
Sleep well, Mr. Carson.
-------------------------------------------------------------

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

MEDIA
Report Acknowledges Inaccuracies in 2004 Exit Polls
Will the Inaugural Protests Be Covered?
PR Firm Admits Pundit's Deal Broke Rules
FCC Boss Opposes Broadcasters on Digital Multicast
Conservatives Pick Soft Target: A Cartoon Sponge
Media Leadership Nears Changing of the Guard
Katie Couric, CBS Anchor? It's Like Night And 'Today'

TELECOM
Rural Phone Service Fund Under Siege
Cell Tower Case Beamed to High Court

INTERNET
Internet and Phone Companies Plot Wireless-Broadband Push
Firms Bid to Control .net Addresses
How Seniors Use the Internet for Health

PRIVACY/PROPERTY
In Age of Security, Firm Mines Wealth Of Personal Data
Electronics Firms Form Digital Media Rights Accord

MEDIA

REPORT ACKNOWLEDGES INACCURACIES IN 2004 EXIT POLLS
A report from Joe Lenski of Edison Media Research and Warren Mitofsky of=20
Mitofsky International on exit polling on election day finds that: 1)=20
Interviewing for the 2004 exit polls was the most inaccurate of any in the=
=20
past five presidential elections as procedural problems compounded by the=20
refusal of large numbers of Republican voters to be surveyed; 2) the flaws=
=20
did not produce a single incorrect projection of the winner in a state on=20
election night, but "there were 26 states in which the estimates produced=20
by the exit poll data overstated the vote for John Kerry . . . and there=20
were four states in which the exit poll estimates overstated the vote for=20
George W. Bush;" 3) the analysis found no evidence of fraud resulting from=
=20
the rigging of voting equipment. Their investigation identified other=20
factors that contributed to errors in the 2004 exit polls. Interviewing in=
=20
precincts where polltakers were required to stand farther away from the=20
polls were less accurate than those where interviewers had easier access to=
=20
voters leaving the polling places. Poor weather conditions also pushed down=
=20
cooperation rates. They suspected that there were more young people working=
=20
as interviewers in 2004, which they said was another potential source of=20
error. Adding to the confusion, programming errors were discovered and=20
corrected in the afternoon of Election Day, and a technical problem=20
severely disrupted access to the system for nearly two hours late on=20
election night.
[SOURCE: Washington Post, AUTHOR: Richard Morin and Claudia Deane]
http://www.washingtonpost.com/wp-dyn/articles/A22188-2005Jan19.html
(requires registration)
Also see:
USA Today
http://www.usatoday.com/printedition/news/20050120/1a_offlede20.art.htm
http://www.usatoday.com/printedition/news/20050120/edtwo20.art.htm
NY Times
http://www.nytimes.com/2005/01/20/politics/20exit.html

WILL THE INAUGURAL PROTESTS BE COVERED
[Commentary] In 2001, the media largely ignored the biggest inaugural=20
protest in history. Will it do so again today?
[SOURCE: MediaChannel.org, AUTHOR: Danny Schechter]
http://www.mediachannel.org/views/dissector/affalert315.shtml

PR FIRM ADMITS PUNDIT'S DEAL BROKE RULES
The public relations firm that arranged for pundit Armstrong Williams to=20
promote the Bush administration's No Child Left Behind education program=20
admitted Wednesday that the deal with Williams violated =93the guidelines of=
=20
our agency and our industry.=94
[SOURCE: USAToday, AUTHOR: Mark Memmott and Greg Toppo]
http://www.usatoday.com/printedition/news/20050120/a_williams20.art.htm
Also in --
NY Times
http://www.nytimes.com/2005/01/20/business/media/20ketchum.html

FCC BOSS OPPOSES BROADCASTERS ON DIGITAL MULTICAST
FCC Chairman Michael Powell has proposed rejecting a request that cable=20
companies be required to carry all the digital signals offered by a=20
broadcast television station. In 2001, the FCC ruled that cable had to=20
carry the digital television signal but it only had to carry one video=20
stream of the broadcaster's choosing. Paxson Communications Corp. and=20
others petitioned the agency to reconsider. Chairman Powell has circulated=
=20
a proposal that would uphold that decision and has scheduled to complete=20
the voting at the FCC's next open meeting on Feb. 10. However, he could=20
modify or withdraw the proposal at any time and he must convince two of the=
=20
four other FCC commissioners to support the item.
[SOURCE: Reuters, AUTHOR: Jeremy Pelofsky]
http://www.reuters.com/newsArticle.jhtml?type=3DindustryNews&storyID=3D7...
85

CONSERVATIVES PICK SOFT TARGET: A CARTOON SPONGE
As Karen Menichelli'll tell ya, kids and grown-ups alike adore Sponge Bob=20
Squarepants. But the loveable little cartoon character is the newest target=
=20
for conservative Christians. It may have something to do with Bob becoming=
=20
a well-known camp figure among adult gay men, perhaps because he holds=20
hands with his animated sidekick Patrick and likes to watch the imaginary=20
television show "The Adventures of Mermaid Man and Barnacle Boy." bob also=
=20
appears is a music video that teaches children about multiculturalism.
[SOURCE: New York Times, AUTHOR: David Kirkpatrick]
http://www.nytimes.com/2005/01/20/politics/20sponge.html
(requires registration)

MEDIA LEADERSHIP NEARS CHANGING OF THE GUARD
Some of the top executives who shaped business and popular culture in the=20
past 20 years or so as they built entertainment behemoths are preparing to=
=20
move on. The ripples are likely to alter everything from corporate customs=
=20
to the movies, TV shows, music, publications and technologies that the=20
companies promote. On the way out are Eisner, Redstone, and, perhaps,=20
Murdoch. The next generation of leaders includes Iger, Freston, Moonves,=20
Chernin and another Murdoch. One thing that seems certain about the=20
generation that's preparing to move up is that it probably won't put as=20
vivid a stamp on media or culture as the current crop of larger-than-life=20
CEOs have. Most in the new class succeeded by working within the system,=20
not by shaking it up. Most cut their teeth in traditional media,=20
particularly broadcast and cable TV. And most are white men. Additionally=20
they all seem 1) less prone to cutthroat competition, 2) more fiscally=20
restrained, 3) more prone to delegation and decentralized decision making,=
=20
and 4) more comfortable, but not entranced by technology.
[SOURCE: USAToday, AUTHOR: David Lieberman]
http://www.usatoday.com/printedition/money/20050120/mediabench.art.htm
http://www.usatoday.com/printedition/money/20050120/b_mediabench_chart20...
.htm

KATIE COURIC, CBS ANCHOR? IT'S LIKE NIGHT AND 'TODAY'
[Commentary] More on the fallout of Memogate and the plans of Viacom's Les=
=20
Moonves to revamp CBS News after anchor Dan Rather departs. The Memogate=20
story isn't over by a long shot. Joe Hagan reported yesterday in the New=20
York Observer that producer Mary Mapes, considered most responsible for the=
=20
Sept. 8 report -- on George W. Bush's service in the Texas Air National=20
Guard during the Vietnam War -- issued a statement insisting she had done=20
"nothing wrong" in preparing it. The three other staff members, told by CBS=
=20
to resign, have so far declined to do so, Hagan reported, and are=20
considering "legal action" against CBS News.
[SOURCE: Washington Post, AUTHOR: Tom Shales]
http://www.washingtonpost.com/wp-dyn/articles/A22649-2005Jan19.html
(requires registration)

TELECOM

RURAL PHONE SERVICE FUND UNDER SIEGE
The federal universal service fund, which makes telephone service in rural=
=20
areas more affordable, is under siege from critics who say it amounts to an=
=20
unwarranted windfall for wireless companies. The$3.5 billion fund, financed=
=20
by a 10.7% fee on every long-distance bill, goes mostly to rural phone=20
incumbents to keep basic home service affordable. That's because it's=20
costly for companies to string wires to rural areas with few customers. But=
=20
to spur competition, the 1996 Telecommunications Act also lets the=20
incumbents' rivals =97 most of which are wireless carriers =97 receive some=
of=20
the money if state or federal officials find it's in the public interest.=20
The sum received by wireless providers soared to about $230 million last=20
year, from $2.6 million in 2000. Rural phone companies complain that those=
=20
payments are unnecessary and a big reason the fund is under strain. The FCC=
=20
is listening. It's set to rule next month on a proposal that could sharply=
=20
cut universal-service funding for wireless providers.
[SOURCE: USAToday, AUTHOR:Paul Davidson]
http://www.usatoday.com/printedition/money/20050120/ruralfund20.art.htm

CELL TOWER CASE BEAMED TO HIGH COURT
In the last decade, 140,000 cell towers have sprouted up around the nation,=
=20
the cellphone industry says, and more are needed to eliminate "dead spots."=
=20
But in many cities, officials contend the towers are unsightly. And, on=20
occasion, officials have blocked wireless phone companies from erecting=20
more towers. On Wednesday, the Supreme Court took up a case to decide=20
whether cities can be sued in federal court and forced to pay damages if=20
they stand in the way of creating a wireless phone network. The outcome of=
=20
the legal battle could affect communities across the nation. The court's=20
decision would give either city officials or wireless companies the upper=20
hand in disputes over the building and location of towers.
[SOURCE: Los Angeles Times, AUTHOR: David G. Savage]
http://www.latimes.com/news/printedition/asection/la-na-scotus20jan20,1,...
374.story?coll=3Dla-news-a_section
(requires registration)

INTERNET

INTERNET AND PHONE COMPANIES PLOT WIRELESS-BROADBAND PUSH
Several big Internet and phone companies are moving to provide wireless=20
high-speed access to the Internet. If successful, these efforts have the=20
potential to yet again shift the balance of power in the rapidly changing=20
U.S. telecommunications industry, giving consumers a potentially cheaper=20
and more flexible alternative to phone and cable lines for Internet access=
=20
and many other services. More competition could be introduced to the=20
broadband market and given relatively cheap deployment, could mean lower=20
prices and more options for consumers and businesses.
[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,,SB110617646006230682,00.html?mod=3Dtoda...
s_page_one
(requires subscription)

FIRMS BID TO CONTROL .NET ADDRESSES
The bidding is closed as now the Internet Corporation for Assigned Names=20
and Numbers (ICANN) will review proposals and choose the next administrator=
=20
of the .net Internet domain. A domain operator's job is to maintain the=20
registry containing information that Internet switching systems need to=20
direct traffic to intended recipients. If the .net list had errors or=20
became unavailable, parts of the Internet could become inaccessible. The=20
.net domain facilitates $700 billion annually in Internet commerce and the=
=20
winning applicant will take in roughly $30 million a year in registration=
fees.
[SOURCE: Washington Post, AUTHOR: ]
http://www.washingtonpost.com/wp-dyn/articles/A22605-2005Jan19.html
(requires registration)
See commentary at News.com:
http://news.com.com/Why+we+should+get+to+operate+.net/2008-1028_3-554230...
ml?tag=3Dnefd.ac

HOW SENIORS USE THE INTERNET FOR HEALTH
A national Kaiser Family Foundation survey of older Americans found that as=
=20
the Internet becomes an increasingly important resource for informing=20
decisions about health and health care options, less than a third (31%) of=
=20
seniors (age 65 and older) have ever gone online, but that more than=20
two-thirds (70%) of the next generation of seniors (50-64 year-olds) have=20
done so. The differences among seniors and 50-64 year-olds are striking and=
=20
indicate that online resources for health information may soon play a much=
=20
larger role among older Americans. Twenty-one percent of seniors have gone=
=20
online to look for health information compared to 53% of 50-64 year-olds;=20
8% of seniors get "a lot" of health information online compared to 24% of=20
50-64 year-olds; the Internet is 5th on a list of media sources of health=20
information for seniors compared to first among 50-64 year-olds; and 26% of=
=20
seniors trust the Internet =93a lot=94 or =93some=94 to provide accurate=
health=20
information, compared to 58% of 50-64 year-olds. The survey is a nationally=
=20
representative, random digit dial telephone survey of 1,450 adults age 50=20
and older, including 583 respondents age 65 and older.
[SOURCE: Kaiser Family Foundation]
http://www.kff.org/entmedia/entmedia011205pkg.cfm

PRIVACY/PROPERTY

IN AGE OF SECURITY, FIRM MINES WEALTH OF PERSONAL DATA
It began in 1997 as a company that sold credit data to the insurance=20
industry. But over the next seven years, as it acquired dozens of other=20
companies, ChoicePoint Inc. became an all-purpose commercial source of=20
personal information about Americans, with billions of details about their=
=20
homes, cars, relatives, criminal records and other aspects of their lives.=
=20
Now the little-known information industry giant is transforming itself into=
=20
a private intelligence service for national security and law enforcement=20
tasks. ChoicePoint and other private companies increasingly occupy a=20
special place in homeland security and crime-fighting efforts, in part=20
because they can compile information and use it in ways government=20
officials sometimes cannot because of privacy and information laws. No,=20
dear, that's not Jack Frost you fell -- its the chill of lost privacy. See=
=20
the URL below.
[SOURCE: Washington Post, AUTHOR: Robert O'Harrow Jr]
http://www.washingtonpost.com/wp-dyn/articles/A22269-2005Jan19.html
(requires registration)

ELECTRONICS FIRMS FORM DIGITAL MEDIA RIGHTS ACCORD
The world's four biggest consumer electronics companies have agreed to=20
start using a common method to protect digital music and video against=20
piracy and illegal copying. Japan's Sony and Panasonic-brand owner=20
Matsushita Electric Industrial, South Korea's Samsung Electronics and Dutch=
=20
Philips Electronics formed the alliance because they want buyers of their=20
products to watch or listen to "appropriately licensed video and music on=20
any device, independent of how they originally obtained that content," they=
=20
said in a joint statement.
[SOURCE: Reuters, AUTHOR: Lucas van Grinsven]
http://www.reuters.com/newsArticle.jhtml?type=3DinternetNews&storyID=3D7...
38
See also
Bertelsmann Settles With Small Music Company in Suit Over Napster
http://www.nytimes.com/2005/01/20/business/media/20napster.html
--------------------------------------------------------------
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

Due to technical difficulties, we were unable to post Headlines on Friday
January 14. We begin today's Headlines with quick recaps of the stories we
were reading last week and follow with today's top stories.

NEWS FROM LAST WEEK -- Reports from Thursday's FCC Meeting and more

MEDIA
Media's Legislative Outlook
Is Communications Consolidation Hurting Democracy?
Looking for New Ways to Make Viewers Pay
Firms Fear Backlash From Williams Case

TELECOM POLICY
Phone Companies Push Telecom Overhaul
Telco Rewrite on Fast -- and Slow -- Track
Jury Is Still Out on Driver-Cellphone Laws
Hospitals Ease Cellphone Bans

QUICKLY -- FCC Rejects Objection to Low Power Radio; Report on Comcast
Rates; Measuring Literacy in a World Gone Digital; Fox's Bottom Line;
Challengers Vie to Run .Net; Fuji TV to Launch Radio Bid; Intelsat Loses
Use of Satellite

NEWS FROM LAST WEEK

* The FCC held an open meeting last Thursday with presentations by senior
agency officials regarding implementations of the agency's strategic plan
and a comprehensive review of the Commission's policies and procedures.
Media Bureau Chief Ken Ferree said his staff has wrapped up its
recommendation for speeding the transition to all-digital TV broadcasting.
All he needs to present it to the five FCC commissioners for their review
is the go-ahead from Chairman Michael Powell. The FCC is eager to end the
DTV switch and turn over reclaimed TV channels to local emergency
departments and auction others to wireless companies. Ferree said the plan
could include a recommendation on whether broadcasters would be entitled to
cable carriage of the six or so channels they would be able to offer in
digital, but it would be Powell's decision to include that provision or
request a vote on the measure separately.
[See
http://www.broadcastingcable.com/article/CA496073?display=Breaking+News&...
or
http://www.multichannel.com/article/CA496089.html?display=Breaking+News&...
(free access for Benton's Headlines subscribers)

* Commissioners Michael Copps and Jonathan Adelstein asked about
proceedings on localism, broadcasters' public interest obligations and
disclosure. Ferree answered that the proceedings on disclosure and public
interest obligations should reach the Chairman's office for review and
circulation soon. [Thanks to New America Foundation's Jim Snider for this
news.]

* Also at the same meeting, Commissioner Adelstein urged the FCC's
Enforcement Bureau to investigate the Armstrong Williams pay-for-play
scandal, saying that payola is "alive and well" and on the rise. Adelstein
pointed out that FCC rules require anyone who is paid to broadcast
information to disclose that fact to the licensee.
http://www.broadcastingcable.com/article/CA496030.html?display=Breaking+...
(free access for Benton's Headlines subscribers)

* Media activist organization Free Press is asking both the FCC and
Congress to investigate the Armstrong Williams situation. Free Press has
sent 12,500 complaints about the incident to the FCC and plans to share
them with Members of Congress.
http://www.broadcastingcable.com/article/CA496076?display=Breaking+News&...
(free access for Benton's Headlines subscribers)

* On Friday, FCC Chairman Michael Powell officially asked the Commission's
Enforcement Bureau to open an investigation into the Williams-payola affair.
http://www.broadcastingcable.com/article/CA496807?display=Breaking+News&...
(free access for Benton's Headlines subscribers)
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-256115A1.pdf
See also: http://www.radioink.com/HeadlineEntry.asp?hid=126770&pt=todaysnews

* President Bush said Thursday, "There needs to be a clear distinction
between journalism and advocacy." We need "to take a good look and make
sure this kind of thing doesn't happen again."
http://www.usatoday.com/news/washington/2005-01-13-bush-williams_x.htm

* And finally... FCC Staff Changes
FCC Chairman Michael Powell announced that FCC General Counsel John Rogovin
is leaving the Commission. Austin Schlick will serve as Acting General
Counsel. Mr. Schlick has served as Deputy General Counsel responsible for
the agency's litigation. Before joining the Commission in February 2004,
he served as an assistant in the Solicitor General's office of the U.S.
Department of Justice. In that position he represented the government in
various cases before the Supreme Court. Prior to that position, he was a
partner with the Washington, D.C., law firm of Kellogg, Huber, Hansen, Todd
and Evans, where he specialized in telecommunications and appellate
litigation. Chairman Michael Powell also announced that Barbara J. Douglas,
Director of the FCC's Office of Workplace Diversity, is leaving the
Commission.
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-256060A1.doc
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-256061A1.doc

MEDIA

MEDIA'S LEGISLATIVE OUTLOOK
B&C offers odds of various telecom bills passing through Congress this
year. 1) The most pressing issue facing the TV business is transition to
all-digital broadcasts. House Commerce Committee Chairman Joe Barton (R-TX)
wants it to end in 2006; FCC Chairman Michael Powell is suggesting 2009.
Senate Commerce Committee Chairman Ted Stevens (R-Alaska) may be the
deciding factor in legislation B&C suggests is likely to pass this year. 2)
Media lobbyists and anti-consolidation activists will beg Congress to pass
opposing versions of legislation rewriting the FCC's broadcast-ownership
limits. But there's no way Congress will change the commission's limits in
any direction: Either loosening or tightening the rules would generate an
unwanted backlash from the losing side. The FCC has until Jan. 31 to
request Supreme Court review of a lower-court order against its rules. If
the FCC asks the justices to take the case, the court likely will be tied
up with it for most of the current congressional session. If the FCC drops
the case, the commissioners will be obligated to spend the next year doing
their own rewrite. Either way, Congress will stay out of the fight. 3)
Without another Janet Jackson-like incident, don't expect new indecency
legislation to pass this year -- although that won't stop some from trying.
[SOURCE: Broadcasting&Cable, AUTHOR: Bill McConnell]
http://www.broadcastingcable.com/article/CA496911.html?display=News&refe...
(free access for Benton's Headlines subscribers)

IS COMMUNICATIONS CONSOLIDATION HURTING DEMOCRACY? WRAPPING UP 2004
[Commentary] There are a few things we can say with some confidence
regarding communications policy in 2004. Both the evangelical right and
the pro-business right held major sway over the federal agencies that were
formed to oversee communications activity on behalf of the entire
public. The trend toward consolidation continued in both the sector that
produces content and the sector that distributes content. While the
communications industries spent millions influencing policy, they also made
billions in return for that investment. While a few stockholders benefited
from this state of affairs, most consumers did not. Democracy, and the
enlightened citizen so necessary to make it function, most certainly did
not benefit from the state of communications policy in 2004.
[SOURCE: Center for American Progress, AUTHOR: Mark Lloyd]
http://www.americanprogress.org/site/pp.asp?c=biJRJ8OVF&b=290397

LOOKING FOR NEW WAYS TO MAKE VIEWERS PAY
Were Americans merely using DVRs to replay touchdowns, advertisers and
television networks wouldn't be so worried. But studies have shown that at
least 70% of today's estimated 6.5 million DVRs are routinely used for
what's known as commercial avoidance. With DVR use expected to grow tenfold
over the next five years, the devices are threatening to bring the
$60-billion-a-year TV advertising business to its knees. Advertisers and
network executives have begun to scrutinize the habits of DVR users,
wondering if viewers can be persuaded to help pay for programming that
they're now getting free. Many executives believe the networks' very
survival depends on viewers accepting what some might see as a radical
idea: that the audience, not just advertisers, must subsidize the high cost
of producing the shows that so many Americans love to watch. If they don't,
executives say, the networks won't have the money to produce expensive shows.
[SOURCE: Los Angeles Times, AUTHOR: Meg James]
http://www.latimes.com/business/printedition/la-fi-dvr18jan18,1,5097159....
(requires registration)
See also --
The New Ad Age
As the advertising industry devises new ways to get its messages across,
technologies are continually being developed that make it possible for
people to skip or avoid ads.
[SOURCE: AlterNet, AUTHOR: Joy Lanzendorfer]
http://www.alternet.org/mediaculture/20997/

FIRMS FEAR BACKLASH FROM WILLIAMS CASE
Public relations firms that are paid millions of dollars a year by the
federal government to promote programs and policies are worried the money
might dry up because of the Armstrong Williams flap at the Department of
Education. The Williams controversy was magnified by earlier revelations
that the Education Department had paid Ketchum to rate journalists on how
positively or negatively they reported on No Child Left Behind and to
produce a video news release on the law that was used by some TV stations
as if it were real news. Other government agencies, including the Census
Bureau, the Office of National Drug Control Policy and the Department of
Health and Human Services, have distributed such prepackaged videos, a
practice that congressional auditors have described as illegal propaganda
in some cases.
[SOURCE: Washington Post, AUTHOR: Christopher Lee and Jeffrey H. Birnbaum]
http://www.washingtonpost.com/wp-dyn/articles/A16464-2005Jan17.html
(requires registration)

TELECOM POLICY

PHONE COMPANIES PUSH TELECOM OVERHAUL
The nation's biggest phone companies are seeking a rollback of
telecommunications regulations, but other industries that would be affected
-- the cable and wireless companies that have gained ground against
traditional phone companies in recent years -- don't want major changes,
creating a potential roadblock to new legislation. The divisions are in
stark contrast to the mid-1990s when the interested groups were united in
seeking reform. Overhauling the Telecommunications Act of 1996 -- which was
enacted before the Internet became a widespread conduit for phone calls,
text messages, video and other communications -- appears to be a priority
for many in Congress, but not for the Bush Administration. "There is a lot
of consensus that the Telecom Act was a failure but no consensus on how to
fix it," said Scott Cleland, a telecom analyst with Precursor Group in
Washington. And, "this Congress has much bigger fish to fry."
[SOURCE: Wall Street Journal, AUTHOR: Anne Marie Squeo
annemarie.squeo( at )wsj.com]
http://online.wsj.com/article/0,,SB110600339615628254,00.html?mod=todays...
(requires subscription)

TELCO REWRITE ON FAST -- AND SLOW -- TRACK
The election is over, we have a new Congress, let's get that
telecommunications reform bill rolling, right? Not so fast, says new Senate
Commerce Committee Chairman Ted Stevens (R-Alaska). Sen Stevens is
determined to move deliberately and has resisted calls from his House
counterpart, Rep Joe Barton (R-TX), to move quickly. As of last week, Sen
Stevens had not even named a telecom aide to oversee the legislation. Why
is the Alaska Republican moving so slow? Fresh from a stint running the
Appropriations Committee, where he kept tight control over pork barrel
spending and the political loyalty he could demand by doling it out,
Stevens is determined to keep similarly close control over the legislation
and the political favors he can negotiate by keeping people guessing his
intentions.
[SOURCE: Broadcasting&Cable, AUTHOR: Bill McConnell]
http://www.broadcastingcable.com/article/CA496342.html?display=Breaking+...
(free access for Benton's Headlines subscribers)

JURY IS STILL OUT ON DRIVER-CELLPHONE LAWS
Cities around the country are enforcing new restrictions on using
cellphones while driving, requiring drivers to use handsets if they really
must take/make that call. But with cellphone-related incidents making up
only a small percentage of motor vehicle accidents, even government
officials wonder why this particular behavior was chosen for a law, since
studies have shown that hands-free and hand-held cellphones are equally
distracting. John Walls, the vice president of public affairs of CTIA, the
Wireless Association, a trade organization representing wireless interests,
said it was unfair and unnecessary to create hands-free laws. "We question
the need for a law singling out behavior that apparently is pretty far down
the pecking order of accidents in the first place," Mr. Walls said. He
cited statistics showing that before the New York law was enacted, fewer
than one-hundredth of 1 percent of New York City accidents were related to
cellphones.
[SOURCE: New York Times, AUTHOR: ]
http://www.nytimes.com/2005/01/18/national/18cell.html
(requires registration)

HOSPITALS EASE CELLPHONE BANS
As the Federal Communications Commission revisits rules against cellphone
use on airplanes, hospitals are rethinking their own policies on the
devices. Policies against cellphone use in hospitals largely began in the
1990s, as the devices became more popular and hospitals grew concerned
about interfering with vital medical equipment such as cardiac monitors.
The bans mirrored restrictions by the FCC and Federal Aviation
Administration on the use of cellphones on airplanes, which emerged out of
fear that the gadgets could interfere with flight communications. But the
issue of whether and how wireless devices affect other electronic equipment
is unresolved. Research on the subject is limited, though there is growing
evidence that today's lower-power, digital cellphones aren't as likely as
older models to be a problem for medical equipment, especially if they
aren't in close proximity.
[SOURCE: Wall Street Journal, AUTHOR: ]
http://online.wsj.com/article/0,,SB110600365946928266,00.html?mod=todays...
(requires subscription)

QUICKLY

FCC REJECTS MOTOROLA'S OBJECTION TO LOW POWER RADIO
Motorola complained to the FCC that certain applicants proposing to operate
on channels 62-69 would negatively impact the ability of public safety
entities to deploy their systems on these channels. The FCC ruled that
Motorola's opposition is speculative and unsupported. Motorola offers no
specific information to suggest that any of the facilities proposed in the
applications will cause interference to other Commission licensees. In
essence, Motorola's opposition is a late-filed attempt to seek
reconsideration of the Commission's earlier determination
[SOURCE: Federal Communications Commission]
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DA-05-83A1.doc

REPORT ON COMCAST RATES
How much should Comcast charge for basic services? Two consultants compared
what the cable giant does charge and estimates what it should charge. There
results are at the URL below.
[SOURCE: RiedelCommunications, AUTHOR: Garth Ashpaugh and Dick Treich]
http://www.riedelcommunications.com/images/Final_AS_FRC_Comcast_2004_Nat...
Also see http://www.riedelcommunications.blogspot.com/ for commentary.

MEASURING LITERACY IN A WORLD GONE DIGITAL
The Educational Testing Service, the nonprofit group behind the SAT,
Graduate Record Examination and other college tests, has developed a new
test -- the Information and Communications Technology literacy assessment
-- that it says can assess students' ability to make good critical
evaluations of the vast amount of material available to them. The test is
intended to measure students' ability to manage exercises like sorting
e-mail messages or manipulating tables and charts, and to assess how well
they organize and interpret information from many sources and in myriad forms.
[SOURCE: New York Times 1/17, AUTHOR: Tom Zeller]
http://www.nytimes.com/2005/01/17/technology/17test.html
(requires registration)

NO IFS, ANDS OR BUTTS: FOX'S BOTTOM LINE
A brief look at how Fox network television programs are responding to
stepped-up indecency enforcement from the FCC. No more naked cartoon baby
butts.
[SOURCE: Washington Post, AUTHOR: Lisa de Moraes]
http://www.washingtonpost.com/wp-dyn/articles/A16857-2005Jan17.html
(requires registration)

VERISIGN HAS CHALLENGERS TO RUN .NET DOMAIN
NeuStar, a Sterling (VA) company that runs .biz, Afilias, which manages
.info and a nonprofit firm in Frankfurt, Denic eG, which manages Germany's
eight million registered .de domain names are all lining up to bid against
VeriSign for the .net franchise which VeriSign currently controls but ends
on June 30. While .net is not as ubiquitous as .com, it has more than five
million registered domain names, which translates daily into millions of
page views, 155 billion e-mail messages and some $1.4 million in commercial
transactions
[SOURCE: New York Times 1/17, AUTHOR: Elizabeth Olson]
http://www.nytimes.com/2005/01/17/technology/17domain.html
(requires registration)

FUJI TV TO LAUNCH RADIO BID
Fuji Television Network currently holds a 12.39% stake in Nippon
Broadcasting System, but will offer up to $1.67 billion for shares of
Nippon and may aim to turn the radio broadcaster into a wholly owned unit.
[SOURCE: Wall Street Journal, AUTHOR: Natsuo Nishio
natsuo.nishio( at )dowjones.com]
http://online.wsj.com/article/0,,SB110598864386327970,00.html?mod=todays...
(requires subscription)

INTELSAT LOSES USE OF SATELLITE
Global satellite operator Intelsat Ltd. has permanently lost one of its
orbiting spacecraft because of an electrical failure, prompting the company
to announce plans to take a non-cash charge of $73 million. The satellite
provided communications services in the South Pacific and some service
areas were without voice and data communications yesterday. The satellite's
failure gives the planned buyer of Intelsat, Zeus Holdings Ltd., the right
to back out of the deal. Zeus has told Intelsat it is evaluating the impact
of the satellite's loss. The deal was to have been completed by the end of
the first quarter.
[SOURCE: Washington Post, AUTHOR: Justin Blum]
http://www.washingtonpost.com/wp-dyn/articles/A16676-2005Jan17.html
(requires registration)
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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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