Benton RSS Feed

The Senate Commerce Committee holds a hearing this morning on the=20
nominations of Jonathan Adelstein (Federal Communications Commission),=20
Ernest Wilson, Claudia Puig, and Gay Gains (Corporation for Public=20
Broadcasting). For this and other upcoming media policy events, see=20
http://www.benton.org/calendar.htm

MEDIA
Scientific American Hails Rereg Fight
Dean Criticizes News Media
Powell 'Disappointed' in Disney
Broadcasters=92 Actions May Be an Attempt to Attack FCC Rules
Farmers Plant Doubts About DTV Plan
Gimme That Old-Time Channel Lineup
Infomercial Group Self-Regulates
Radio Chain to Cut Ties to Promoters Paid by Labels

INTERNET
Extension of Ban On Internet Taxes Nears Approval
Now You See 'Em, Now You Don't: More Telecom Regulations Fall at the FCC
eLearning in Nonprofits and Associations

QUICKLY
Cellphone Carriers Hold Line on Fees
Exit Poll Data Will be Delayed
Hoffman Leaving FTC

MEDIA

SCIENTIFIC AMERICAN HAILS REREG FIGHT
Scientific American has decided that the fight against media consolidation=
=20
was one of the 50 "outstanding acts of leadership in science and=20
technology" of the past year and the magazine has named Media Access=20
Project President Andrew Schwartzman one of the "Scientific American 50"=20
for 2004. =93As media giants extend their empires,=94 they wrote, =93local=
news=20
and a diversity of viewpoints can be lost or extinguished, depriving the=20
public of important information and dialogue.=94
Schwartzman expressed surprise to be included in a group largely composed=20
of experimental scientists, but said he was gratified that the magazine=20
recognized that media consolidation is an issue of such great magnitude. He=
=20
stressed that he realized that his selection was symbolic, saying "I was=20
just one of a team of attorneys who have worked on the media consolidation=
=20
issue for years. My colleagues Cheryl Leanza and Harold Feld and our=20
support staff were tireless in taking on the challenge of media ownership.=
=20
And Media Access Project was just a small part of a large coalition of=20
civil rights, civil liberties, consumer, artistic, labor and other citizens=
=20
groups which worked to achieve these victories."
[SOURCE: Broadcasting&Cable, AUTHOR: Bill McConnell]
http://www.broadcastingcable.com/article/CA481199.html?display=3DBreakin...
ws&referral=3DSUPP
(free access for Benton's Headlines subscribers)
http://www.mediaaccess.org/SciAm.pdf
http://www.sciam.com/sa50/2004/policy_2.html

DEAN CRITICIZES NEWS MEDIA
"The media is a failing institution in this country," said former Vermont=20
Governor Howard Dean on Tuesday. "They are not maintaining their=20
responsibility to maintain democracy." Speaking at a Yale University=20
symposium, titled "The Media and the Election: A Postmortem," Gov Dean=20
stressed corporate ownership of the media and the increased focus on=20
entertainment as problems with today's media. He emphasized the importance=
=20
of diversity and regulation in fixing these problems. The television=20
networks, especially Fox News, are most to blame for the increased focus in=
=20
journalism on flash and entertainment, Dean said. But speakers at the same=
=20
symposium disagreed. Evan Thomas, an assistant managing editor for=20
Newsweek, said entertainment in the media is a necessary tool to attract=20
the public.
[SOURCE: Yale Daily News, AUTHOR: Yotam Barkai]
http://www.yaledailynews.com/article.asp?AID=3D27403

POWELL 'DISAPPOINTED IN DISNEY
Tsk, tsk, tsk, you global conglomerate's just don't know how to behave. FCC=
=20
Chairman Michael Powell told CNBC's Alan Murray Wednesday that he found=20
ABC's racy Monday Night Football introduction "very disappointing," adding,=
=20
"I wonder if Walt Disney would be proud." Chairman Powell suggested that=20
ABC had boiled up some of its own hot water on the indecency front. "It=20
would seem to me that while we get a lot of broadcasting companies=20
complaining about indecency enforcement, they seem to continuing to be=20
willing to keep the issue at the forefront, keep it hot and steamy, in=20
order to get financial gain from the free advertising it provides. I think=
=20
companies have to make that decision for themselves." Meanwhile, the=20
Parents Television Council, the organization that led the charge against=20
Janet Jackson's breast, announced that it will not file a complaint against=
=20
ABC, saying the intro =93grossly irresponsible,=94 but it doesn't think it=
was=20
indecent.
Also, in the same interview, Chairman Powell said once again that he has no=
=20
plans to leave the Commission anytime soon since he is still having fun and=
=20
there's "still things that are really significantly important for me to=20
complete."
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
http://www.broadcastingcable.com/article/CA481093.html?display=3DBreakin...
ws&referral=3DSUPP
http://www.broadcastingcable.com/article/CA481205.html?display=3DBreakin...
ws&referral=3DSUPP
(free access for Benton's Headlines subscribers)
http://www.multichannel.com/article/CA481077.html?display=3DBreaking+News
FCC to Examine ABC TV Spot
"It will be something we =85 will have to look at; but that's far from=
saying=20
what the result will be," FCC Chairman Michael Powell said.
[SOURCE: Los Angeles Times, AUTHOR: Jube Shiver Jr.]
http://www.latimes.com/business/printedition/la-fi-fcc18nov18,1,1890490....
y?coll=3Dla-headlines-pe-business
(requires registration)

BROADCASTERS' ACTIONS MAY BE AN ATTEMPT TO ATTACK FCC RULES
Why did so many ABC stations decide not to air "Saving Private Ryan" last=20
week? FCC Chairman Powell thinks it may be a subtle attempt to portray FCC=
=20
indecency rules in a negative light. The movie aired twice before on the=20
network and the FCC ruled it was not indecent. But Chairman Powell said not=
=20
only do stations legally have the authority to preempt programming, =93they=
=20
contractually have that authority and they actually have public interest=20
obligations to exercise authority under the way the legal
regime for local broadcasters works.=94 Over the years, stations haven't=20
exercised that option often, but the option has always been there, he said.
[SOURCE: Communications Daily, AUTHOR: Tania Panczyk-Collins]
(Not available online)

FARMERS PLANT DOUBTS ABOUT DTV PLAN
Will DTV play in Peoria? In a meeting with Commissioner Jonathan Adelstein,=
=20
the American Corn Growers Association and the Soybean Producers of America,=
=20
joined by some unions and others, argued that the impact of a hard date for=
=20
cut-off of analog television service will adversely impact rural=20
communities with less access to cable. The groups also argue that the=20
switch to digital must include a multicast must-carry requirement to insure=
=20
that farmers get access to crucial weather information services. For=20
farmers, a weather news is far more than a guide to the day's attire or=20
recreational plans. It is a key piece of business information that affects=
=20
their livelihoods. The topic of farm broadcasting in the digital age is=20
likely to be a hot one at this week's National Association of Farm=20
Broadcasters Convention in Kansas City.
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
http://www.broadcastingcable.com/article/CA481089.html?display=3DBreakin...
ws&referral=3DSUPP
(free access for Benton's Headlines subscribers)

GIMME THAT OLD-TIME CHANNEL LINEUP
Count religious broadcasters in the cast of thousands opposing a la carte=20
cable pricing. Ministers pointed out in comments filed with the FCC that=20
the General Accounting Office has already weighed in saying a la carte=20
cable could put some smaller nets, including minority targeted and=20
religious, out of business. The FCC is scheduled to report to Congress=20
Thursday on whether it thinks a la carte is a good idea.
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
http://www.broadcastingcable.com/article/CA481003.html?display=3DBreakin...
ws&referral=3DSUPP
(free access for Benton's Headlines subscribers)
http://www.multichannel.com/article/CA481169.html?display=3DBreaking+News

INFOMERCIAL GROUP SELF-REGULATES
The Electronic Retailing Self-Regulation Program (ESRP), launched this year=
=20
after the Federal Trade Commission began cracking down on bogus weight-loss=
=20
claims in ads and infomercials, said it has persuaded the marketers of=20
Slim-In-6 and 6-Day-Express Body weight-loss programs to modify their TV=20
infomercials.
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
http://www.broadcastingcable.com/article/CA481012.html?display=3DBreakin...
ws&referral=3DSUPP
(free access for Benton's Headlines subscribers)

RADIO CHAIN TO CUT TIES TO PROMOTERS PAID BY LABELS
Viacom's Infinity Broadcasting, one of the nation's largest radio chains,=20
said yesterday that it planned to sever its relationships with independent=
=20
record promoters, distancing itself from a practice that critics have=20
likened to bribes. The record companies have paid middlemen for decades,=20
though the practice has long been derided as a way to skirt a federal=20
statute that outlaws bribes to radio broadcasters. The law prohibits=20
broadcasters from taking cash or anything of value in exchange for playing=
=20
a specific song, unless they disclose the payment to listeners. But in a=20
practice that is common in the record business, independent promoters pay=20
radio stations annual fees often exceeding $100,000, not, they say, to play=
=20
specific songs but to obtain advance copies of the stations' playlists. The=
=20
promoters then bill record labels for each new song that is added; the=20
practice costs the record industry tens of millions of dollars a year.=20
Record executives said yesterday that even if the termination of deals at=20
some companies means promoters can no longer bill the record labels when a=
=20
song is placed on those companies' playlists, promoters may instead ask the=
=20
labels for retainer fees to lobby specific radio programmers.
[SOURCE: New York Times, AUTHOR: Jeff Leeds]
http://www.nytimes.com/2004/11/18/business/media/18infinity.html
(requires registration)

INTERNET

EXTENSION OF BAN ON INTERNET TAXES NEARS APPROVAL
Although the legislation has been stalled for months, a four-year extension=
=20
of a ban on taxing Internet access services is expected to clear Congress=20
and make its way to the White House by the end of the week. The legislation=
=20
would restrict the ability of state and local governments to assess taxes=20
on Internet-access services, including high-speed wireless and broadband=20
services. It would not apply to new Internet phone technologies or to sales=
=20
taxes on products and services purchased online. A previous ban, passed in=
=20
1998, expired in November 2003. The expanded provision protecting broadband=
=20
sparked opposition from governors, mayors and other local officials, who=20
feared it would restrict or prevent their assessing existing=20
telecommunications taxes on the Internet. Such taxes bring in about $20=20
billion a year and are used to pay for numerous programs and services.
[SOURCE: Wall Street Journal, AUTHOR: Rob Wells rob.wells( at )dowjones.com &=20
Anne Marie Squeo annemarie.squeo( at )wsj.com]
http://online.wsj.com/article/0,,SB110072334736977013,00.html?mod=3Dtoda...
s_page_one
(requires subscription)
See also:
http://www.washingtonpost.com/wp-dyn/articles/A58613-2004Nov17.html
http://www.reuters.com/newsArticle.jhtml;jsessionid=3DISUTIWZSKVCQQCRBAE...
Y?type=3DinternetNews&storyID=3D6845669

NOW YOU SEE 'EM, NOW YOU DON'T: MORE TELECOM REGULATIONS FALL AT THE FCC
[Commentary] The Michael Powell deregulatory juggernaut continues to roll=20
along at the Federal Communications Commission, where regulations of=20
telephone service at the state level were the latest victim. On 9=20
November, the FCC relieved digital telephone company Vonage of the need to=
=20
adhere to state-based regulations that normally apply to traditional phone=
=20
companies.
[SOURCE: Center for Digital Democracy]
http://www.democraticmedia.org/news/washingtonwatch/FCCvonage.html

eLEARNING IN NONPROFITS AND ASSOCIATIONS
The 2004 Nonprofit and Association E-learning Survey provides the most=20
complete data to date on mission-based organizations=92 use of e-learning=20
technologies. Overall, the survey shows wide and growing adoption of=20
e-learning among nonprofit organizations and associations. More than 54=20
percent of total respondents either use elearning
or plan to in the next 12 months. Another 36 percent of respondents=20
indicate interest in e-learning, but have no definite plans to implement a=
=20
program. More than 88 percent of respondents indicated they were very or=20
somewhat satisfied with their e-learning programs. Another 10 percent=20
reported that they were somewhat
dissatisfied, while only 2 percent were very dissatisfied with their=20
e-learning programs.
[SOURCE: Isoph]
http://www.isoph.com/pdfs/2004_Nonprofit_E-learning_Survey.pdf

QUICKLY

CELLPHONE CARRIERS HOLD LINE ON FEES
If you're ready to call your Member of Congress over those regulatory fees=
=20
on your cell phone bill, redirect the complaint to your carrier. Verizon=20
Wireless and Sprint PCS said this week that they were cutting the=20
"regulatory cost recovery fees" they pass along to their customers. Those=20
are the fees that telecom providers tack on to their monthly service plans=
=20
that look like government taxes, but are really just additional revenue=20
collected by carriers, which they say goes to recoup the costs of complying=
=20
with government regulations. But carriers aren't hanging up on these=20
monthly fees just yet. Verizon Wireless and Sprint will continue collecting=
=20
the fees at scaled-back rates -- five cents and 40 cents, respectively --=20
and the country's other major wireless carriers all have kept their fees=20
intact. One reason the fees aren't likely to disappear anytime soon: Most=20
cellphone operators except Verizon Wireless, a venture of Vodafone and=20
Verizon, count the regulatory-cost-recovery fees as part of their monthly=20
average customer revenue, which is already in decline at many of the=20
wireless carriers.
[SOURCE: Wall Street Journal]
http://online.wsj.com/article/0,,SB110073723994877437,00.html?mod=3Dtoda...
s_marketplace
(requires subscription)

EXIT POLL DATA WILL BE DELAYED
To avoid leaking information about early exit polls and save media=20
companies embarrassment, on future election days, news organizations that=20
pay for surveys of voters leaving polling places won't see results until=20
late afternoon or early evening. [So I'm wondering... will it be easier to=
=20
control the flow of information four years from now?]
[SOURCE: USAToday, AUTHOR: Mark Memmott]
http://www.usatoday.com/printedition/news/20041118/a_exitpoll18.art.htm

HOFFMAN LEAVING FTC
Bruce Hoffman, deputy director of the Federal Trade Commission=92s=20
competition bureau, announced Wednesday that he will be leaving the FTC=20
Nov. 24 to return to private law practice. Mr. Hoffman helped streamline=20
the commission=92s merger review process and was a lead staffer for the=20
agency=92s review of the NBC/Vivendi Universal merger
http://www.broadcastingcable.com/article/CA481090.html?display=3DBreakin...
ws&referral=3DSUPP
(free access for Benton's Headlines subscribers)
--------------------------------------------------------------
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

TODAY'S QUESTION: Does the government have a bigger stake in you buying a=20
digital TV set -- or ensuring that digital TV programming is diverse and=20
includes local civic and public affairs?

MEDIA
Public Short-Shrifted in Digital TV Transition
EchoStar Thinks Locally
The Television Toddler Boom
Luring the Elusive Tween
When 'No Sex=92 Really Sells
China Formalizes Laws On TV Joint Ventures

TELECOM
Fees Paid by all Phone Customers Help Rural Phone Firms Prosper
Verizon and Sprint to Cut Fee For Transferring Cell Numbers

QUICKLY
Unused PC Power to Run Grid for Unraveling Disease
File-Swap Firm Gets License to Sell Music
Wireless to Drive Internet Growth, Tech Leaders Say
Conference on Blogs' News Impact
Privacy Groups Urge Appeals Court to Guarantee Email Privacy

MEDIA

PUBLIC SHORT-SHRIFTED IN DIGITAL TV TRANSITION
[Commentary] It's time to remind the FCC's Michael Powell that the public=20
is entitled to a fair return from its airways. The public owns the airwaves=
=20
and the broadcasters are trustees for the public good. Broadcasters get the=
=20
exclusive free use of the public airwaves, but in exchange they must serve=
=20
the public interest. The public interest is embodied in the Communications=
=20
Act and in seminal Supreme Court cases. Over the years it has meant many=20
things, but at its core, the public interest means providing local civic=20
and electoral discourse over the public airwaves. This core=20
obligation-which is fundamental to our democracy and self-governance-has=20
been languishing badly. Recent data shows that: 1) Network coverage of the=
=20
Democratic and Republican nominating conventions dropped to an all-time low=
=20
in 2004; just three hours of coverage per convention, per network. 2) A=20
viewer of local television newscasts saw an average of 2.4 minutes of=20
election coverage per half-hour of evening news in the weeks leading to the=
=20
November 2004 election; almost half (45 percent) of the coverage focused on=
=20
campaign strategy and fewer than one-third (29 percent) focused on campaign=
=20
issues, according to the Lear Center's Oct. 21, 2004, interim report. 3)=20
Nearly eight out of 10 of the campaign stories focused on the presidential=
=20
and vice presidential races as opposed to other races (also according to=20
the Lear Center interim report). These statistics show that coverage of=20
local issues in particular is lacking. Our democracy is predicated on an=20
informed citizenry. The FCC must define the public interest for digital=20
television now so that Americans, as consumers of democracy, don't miss out=
=20
on the enormous benefit of the digital airwaves.
[SOURCE: TVWeek, AUTHOR: Gloria Tristani, United Church of Christ]
http://www.tvweek.com/article.cms?articleId=3D26480

ECHOSTAR THINKS LOCALLY
EchoStar has launched a new crusade =97 one that calls on the FCC to impose=
=20
local programming quotas on TV stations. Under EchoStar=92s plan, stations=
=20
could refuse to comply, but they would forfeit their right to mandatory=20
satellite carriage in the relevant market. At a minimum, TV stations should=
=20
reserve 4% of their time to public-affairs programming and public-service=20
announcements geared toward the communities to which they=92re licensed to=
=20
serve, EchoStar says. It picked 4% because FCC rules require DBS operators=
=20
to set aside that amount for public-interest programming. The National=20
Association of Broadcasters is adamantly opposed to local programming=20
quotas, arguing that TV stations in the aggregate already offer =93vast=20
amounts of community-responsive programming=94 and help local charities=
raise=20
millions of dollars. In 1984, the FCC had rules that required a TV station=
=20
to offer local programming in order to gain staff approval of its=20
license-renewal application. The processing guidelines mandated at least 5%=
=20
local and a minimum of 10% non-entertainment programming. But broadcasters=
=20
=97 who said market conditions would force stations to provide local=20
programming =97 persuaded the FCC to drop the quotas. Over the last 20=
years,=20
EchoStar said many =97 perhaps even a majority =97 of TV stations have=
evolved=20
into nothing more than =93downlinks and distribution points for national=20
programming.=94
[SOURCE: Multichannel News, AUTHOR: Ted Hearn]
http://www.multichannel.com/article/CA480164.html?display=3DPolicy
(requires subscription)

THE TELEVISION TODDLER BOOM
Cable networks are showing big interest in attracting the littlest viewers=
=20
these days. The expanded interest in reaching preschoolers stems from the=20
notion that there are new opportunities to be mined as little kids, and=20
their parents, are increasingly drawn to the educational and entertainment=
=20
content that can be found on digital media. What is really encouraging=20
about this boom in preschool programming, says Christy Glaubke, principle=20
associate of media watchdog Children Now, is that =93there can be some good=
=20
that comes from it =97 if it=92s educational.=94 She says, =93There have=
been=20
several studies that have found that young children =97 even=20
socio-economically-disadvantaged children who traditionally don't perform=20
as well in school =97 get a leg up by watching educational television.=94 At=
=20
the same time, she says, there is a potential downside to the programming=20
barrage. =93A concern that we have is the amount of commercialism that=20
children are exposed to on these channels,=94 says Glaubke, citing recent=20
fines levied by the Federal Communications Commission against ABC Family=20
and Nickelodeon for running excessive commercials during its children=92s=20
programming blocks. =93We realize that these networks need to make money,=
but=20
we also know that children under the age of eight are much more vulnerable=
=20
to commercial messages and unable to make a distinction between commercial=
=20
and program content. They=92re more susceptible to being swayed,=94 Glaubke=
says.
[SOURCE: Multichannel News, AUTHOR: Janice Rhoshalle Littlejohn]
http://www.multichannel.com/article/CA479862.html?display=3DSpecial+Report
(requires subscription)

LURING THE ELUSIVE TWEEN
According to Nielsen Media Research, the "tween" demographic ranges from 9=
=20
to 14 years old, but depending on the network, or even the marketing group,=
=20
tweens can fall anywhere from 6 to 14. Because of the big range and varied=
=20
interests, programmers find it hard to target this audience. The younger=20
ones are not quite full-fledged adolescents, and the older ones want to=20
step back a bit from the razor=92s edge of teenage life. They might be=20
interested in watching MTV: Music Television, but are also willing to watch=
=20
great narrative, family-style programming.
[SOURCE: Multichannel News, AUTHOR: Janice Rhoshalle Littlejohn]
http://www.multichannel.com/article/CA479863.html?display=3DSpecial+Report
(requires subscription)

WHEN 'NO SEX' REALLY SELLS
There is no doubt that when it comes to made-for-television movies, cable=20
has cleaned up at the proverbial box office. And while heightened sex and=20
violence may be key to attracting adult moviegoers, many cable channels are=
=20
finding they can pull in broader viewers, in major demos, with original=20
films aimed at families.
[SOURCE: Multichannel News, AUTHOR: Janice Rhoshalle Littlejohn]
http://www.multichannel.com/article/CA479861.html?display=3DSpecial+Report
(requires subscription)

CHINA FORMALIZES LAWS ON TV JOINT VENTURES
A wave of small-scale foreign investments is expected as China has=20
formalized laws that allow international media companies to form=20
television-production joint ventures with Chinese media firms, a move that=
=20
opens up China's burgeoning media sector but restricts the introduction of=
=20
foreign brand names. As many industry observers had expected, the laws=20
require the ventures to be at least 51% owned by a Chinese partner and=20
forbid financial investors that don't specialize in the media business,=20
such as private-equity funds. China's central government has pressed=20
broadcasters to move all viewers to a digital-broadcast pay-TV standard by=
=20
2015. The switch to digital will open more channels to consumers, but=20
broadcasters will need better content to lure those consumers to pay=20
digital-subscription fees.
[SOURCE: Wall Street Journal, AUTHOR: Geoffrey A. Fowler=20
geoffrey.fowler( at )wsj.com]
http://online.wsj.com/article/0,,SB110054559850974374,00.html?mod=3Dtoda...
s_page_one
(requires subscription)

TELECOM

FEES PAID BY ALL PHONE COMPANIES HELP RURAL PHONE FIRMS PROSPER
About 10% of the USA's phone lines are in rural areas, from the northern=20
plains to the Southwest. Many are run by small family-owned phone companies=
=20
and co-ops that sprang up early in the 20th century in out-of-the-way areas=
=20
shunned by big carriers because rural residents are expensive to serve. To=
=20
sustain rural providers, the government created the universal service fund=
=20
(USF). But some rural companies may milk the system. One big problem, some=
=20
say: The government guarantees the rural companies an 11.25% return on=20
their network investments. They can recoup all their operating and capital=
=20
costs, plus net a profit of 11.25%. This complex web of subsidies is coming=
=20
under close scrutiny now. The subsidies and a scarcity of competition in=20
their areas have helped rural companies fare well in a mostly bleak telecom=
=20
industry. They're losing lines -- but at only half the rate of the Bells.=20
Ninety-two percent of them offer broadband. About a third run wires outside=
=20
their home turf to compete with neighboring carriers -- something the Bells=
=20
have never done.
[SOURCE: USAToday, AUTHOR:Paul Davidson]
http://www.usatoday.com/printedition/money/20041116/ruralphone16.art.htm
http://www.usatoday.com/printedition/money/20041116/ruralreg16.art.htm

VERIZON AND SPRINT TO CUT FEE FOR TRANSFERRING CELL NUMBERS
Verizon and Sprint wireless customers will get a small break on their bills=
=20
soon. The companies have decided to eliminate or reduce a 40-cent-per-line=
=20
monthly charge imposed to allow customers to transfer their phone numbers=20
to new carriers. "We call on all wireless providers to reduce or eliminate=
=20
these fees as well," said Janee Briesemeister, director of a cell phone=20
consumers rights project at the Consumers Union. "We've always questioned=20
whether the fees being charged for number portability were covering the=20
actual costs of switching phone numbers or were simply being charged to pad=
=20
profits."
[SOURCE: Washington Post, AUTHOR: Yuki Noguchi]
http://www.washingtonpost.com/wp-dyn/articles/A52986-2004Nov15.html
(requires registration)

QUICKLY

UNUSED PC POWER TO RUN GRID FOR UNRAVELING DISEASE
Can you volunteer your computer to help save the world? IBM will launch the=
=20
World Community Grid today. The goal is to combine computer resources and=20
the shared knowledge of researchers to accelerate the pace of scientific=20
discovery, unlocking the genetic mysteries of illnesses like AIDS,=20
Alzheimer's disease, malaria and cancer
[SOURCE: New York Times, AUTHOR: Steve Lohr]
http://tech.nytimes.com/2004/11/16/technology/16grid.html
(requires registration)
http://www.worldcommunitygrid.org/

FILE-SWAP FIRM GETS LICENSE TO SELL MUSIC
In another sign of the music industry's grudging embrace of file-swapping=20
technology, Universal Music Group has agreed to license its 150,000-song=20
catalog to Snocap, a San Francisco company started by Napster founder Shawn=
=20
Fanning.
[SOURCE: San Jose Mercury News, AUTHOR:Dawn C. Chmielewski]
http://www.mercurynews.com/mld/mercurynews/business/technology/10193743.htm

WIRELESS TO DRIVE INTERNET GROWTH, TECH LEADERS SAY
At the TechNet National Innovation Summit, industry leaders predicted the=20
next big growth phase for the Internet will be in wireless services. "I=20
think the Internet's largest opportunities are in bringing new services,=20
ones that we barely imagine, to billions of people around the world,=20
wirelessly," said John Doerr, one of Silicon Valley's most renowned venture=
=20
capitalists and a partner at Kleiner Perkins Caufield & Byers. One focus of=
=20
the discussion was new ways to use wireless technology to expand the Web.=20
Wi-Fi, the popular term for wireless high-speed Internet access over short=
=20
distances, is gaining traction and other wireless technologies are in the=20
works. TechNet is a bipartisan political network of about 400 CEOs that=20
promotes technology.
News.com reports an interesting quote from Sun Microsystems co-founder Bill=
=20
Joy: "I don't think there's enough money in people knowing the truth."=20
Sorry to read that.
[SOURCE: Reuters, AUTHOR: Duncan Martell]
http://www.reuters.com/newsArticle.jhtml;jsessionid=3DDNZCUGZHLU5TUCRBAE...
A?type=3DinternetNews&storyID=3D6821835
http://news.com.com/Internet+leaders+ponder+U.S.+tech+policies/2100-1022...
453833.html?tag=3Dnefd.top
http://www.technet.org/innovation/national/

CONFERENCE ON BLOGS' NEWS IMPACT
Ana Marie Cox, the Wonkette for blog readers, speaking at the Online News=20
Association conference over the weekend, said blogs have spurred a quicker=
=20
response to breaking news by major media outlets and made it harder for=20
them to sit on stories. Mark Glaser, a columnist for the Online Journalism=
=20
Review who writes about Web logs said bloggers face a near-constant=20
struggle to establish the credibility enjoyed by professionals. Mindy=20
McAdams, a University of Florida journalism professor, applauded bloggers'=
=20
efforts but urged them to adhere to ethical standards held by mainstream=20
journalists. "Our credibility is suffering with so many people rushing to=20
publish things without checking them out," McAdams said after Cox's speech.=
=20
"Blogging is really great. I like that more and more people have a voice.=20
That's good ... But it doesn't give people who call themselves journalists=
=20
an excuse to not check out the information."
[SOURCE: CNN.com]
http://www.cnn.com/2004/TECH/internet/11/15/onlinemedia.ap/index.html

PRIVACY GROUPS URGE APPEALS COURT TO GUARANTEE EMAIL PRIVACY
In response to a federal court of appeals announcement that it would=20
reconsider its earlier decision that the wiretap laws do not apply to=20
real-time interception of email, the Center for Democracy and Technology=20
and six other public interest organizations filed an amicus brief arguing=20
that the court's initial decision had misconstrued the wiretap statute.=20
Senator Patrick Leahy, who was deeply involved in extending the wiretap law=
=20
to email in 1986, also filed an amicus brief in the case.
[SOURCE: Center for Democracy and Technology]
(http://www.cdt.org)
Supplemental Amicus Brief in Favor of Reversal of CDT and others:
http://www.cdt.org/wiretap/20041112joint.pdf
Supplemental Amicus Brief in Favor of Reversal of Senator Patrick Leahy:
http://www.cdt.org/wiretap/20041112leahy.pdf
More on United States v. Councilman email privacy case:
http://www.cdt.org/wiretap/councilman.shtml
More on wiretap laws:
http://www.cdt.org/wiretap/
--------------------------------------------------------------
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.
--------------------------------------------------------------

NARUC and NASUCA are meeting this week in Nashville. For these and other
upcoming media policy events, see http://www.benton.org/calendar.htm

TODAY'S QUESTION: Is "Saving Private Ryan" fit for primetime?
Communications Daily reports that the FCC received a number of complaints
about the broadcast last week.

WASHINGTON AGENDA
USF Funding Controversy Likely a Top 'Lame-Duck' Agenda
Adelstein Likely to Get New Term
CEA, NAB Look for Hard Date for Completing DTV Transition
Will Madison Avenue Be Bushwhacked?
VoIP Backers Should Celebrate Bush Win

MEDIA
Big Media Getting Bigger
Meredith Creates Duopoly-Lite
Web Publishers Move Toward Standardizing Ad-Viewership Data

WASHINGTON AGENDA

USF FUNDING CONTROVERSY LIKELY A TOP 'LAME-DUCK' AGENDA
A number of communications-related issues could be addressed as Congress
returns to town this week. Senate Appropriations Chairman Stevens
(R-Alaska) is considering taking action on the accounting problems with the
Universal Service Fund that have halted E-rate funding and could jeopardize
subsidies for rural telephone companies. A quick legislative fix may be a
temporary exemption of accounting regulations on the fund, so the new
Congress can study and act on the issue next year. Other items that may get
attention are: renomination of FCC Commissioner Adelstein (see story
below), efforts to create a spectrum relocation trust fund (HR-1320), E-911
legislation, the Satellite Home Viewer Improvement Act, the Internet tax
moratorium, and broadcast decency. Apparently, there's little White House
support for an overhaul of the intelligence system this session, so
adoption of the 9/11 Commission's recommendations -- including speeding the
transition to digital-only TV broadcasting (see story below) -- seems
unlikely. This lame-duck Congressional session is not expected to last more
than two weeks.
[SOURCE: Communications Daily, AUTHOR: Terry Lane]
(Not available online)

ADELSTEIN LIKELY TO GET NEW TERM
Unpack those bags, FCC Commissioner Jonathan Adelstein, you may be an
unexpected winner in the 2004 election. Today, President Bush is expected
to renominate Adelstein and ask Congress to include his confirmation in a
package of 85 judicial and other federal posts that lawmakers are expected
to approve by the end of the week. If that happens, Commissioner Adelstein
will have a new five-year term. There's also conflicting rumors about
another FCC Commissioner serving past an expired term. Sen John McCain
supposedly pushed to replace Commissioner Kathleen Abernathy with Commerce
Committee aide Bill Bailey, but FCC Chairman Powell and Abernathy say the
White House has not informed them of such a switch.
[SOURCE: Broadcasting&Cable, AUTHOR: Bill McConnell]
http://www.broadcastingcable.com/article/CA480196.html?display=Breaking+...
(free access for Benton's Headlines subscribers)

CEA, NAB LOOK FOR HARD DATE FOR COMPLETING DTV TRANSITION
There's apparently growing support for setting a hard date for completing
the transition to digital-only TV broadcasting. Broadcasters apparently
favor 2009 as the date, if cable systems transmit broadcasters' full
digital signals by the end of the DTV transition and either make analog
signals available to households to households that don't adopt digital TVs.
Digital TV set makers also think it is important to set such a deadline
once and for all as a necessary step for achieving economies of scale that
would make future DTV sets affordable for the masses.
[SOURCE: Communications Daily, AUTHOR: Tania Panczyk-Collins, Paul Gluckman]
(Not available online)

WILL MADISON AVENUE BE BUSHWACKED?
What will the second term for President Bush mean for advertisers? They
might be a little nervous. Broadcast indecency and violence are likely to
get a lot of attention and a moral groundswell could have a chilling effect
on sponsorship of content for the gay and lesbian community. Many also
believe that the Bush Administration's stance on media ownership will
negatively impact Madison Avenue. Advertisers believe mega-mergers dilute
program diversity. The concentration of ownership stifles the variety of
media content, which, in turn, limits the ability of marketers to
efficiently reach targeted audiences that favor niche programming. There
may also be a crackdown on advertising aimed at children.
[SOURCE: Broadcasting&Cable, AUTHOR: Joe Mandese]
http://www.broadcastingcable.com/article/CA480207.html?display=Advertisi...
(free access for Benton's Headlines subscribers)
For concerns about marketing to children see:
How marketers hook kids, and why we should worry
[SOURCE: USAToday, AUTHOR:Lyn Millner ]
http://www.usatoday.com/printedition/money/20041115/born.art.htm

VOIP BACKERS SHOULD CELEBRATE BUSH WIN
[Commentary] The FCC's vote last week on Internet telephone service "nicely
captures the long-running discord between the Democrats' regulatory
fetishism and the Republicans' regulatory restraint." The Commission's
Republican majority, led by Chairman Michael Powell, decided "VoIP must be
freed from the clutches of busybody state utility commissioners." Democrats
decried the decision's erosion of the federal-state regulatory partnership
and the unanswered questions about issues like universal service. "The
Democrats on the commission simply have been more skeptical of markets, and
the Republicans have been more skeptical of regulation," says James
Gattuso, a fellow at the Heritage Foundation and a former deputy chief at
the FCC. "It's almost a classic situation of burden of proof: The
Republicans seem to be saying, 'Prove to us you need regulation,' and the
Democrats seem to be saying, 'Prove to us markets will work.'" McCullagh
ends: "But given today's political reality, Powell and his Republican
allies probably have done as much as they could to help nurture VoIP and
bring high-speed connections to Americans' homes. The two Democratic
commissioners have not."
[SOURCE: C-Net|News.com, AUTHOR: Declan McCullagh]
http://news.com.com/VoIP+backers+should+celebrate+Bush+win/2010-1071-545...

MEDIA

BIG MEDIA GETTING BIGGER
Apparently the old adage "eat or be eaten" applies to Internet journalism,
too. At the fifth annual Online News Association meeting, the buzz was "Big
Media gets bigger." CBS MarketWatch was purchased by Dow Jones, a direct
competitor that has lagged, not led, the revolution to publish free news on
the Internet -- despite the potential to break news during market hours.
Now the most direct Internet competitors of the Dow Jones-MarketWatch
alliance include Street.com (a smaller Web-only outlet), Forbes, Fortune
and Business Week (all magazines) and Yahoo Finance (an aggregation site).
Sources at the conference said The Washington Post is close to acquiring
Slate, another Web pioneer of original Web content. Slate, which is owned
by Microsoft, focuses on political reporting, much like the Post does.
[SOURCE: C-Net|News.com, AUTHOR: Jeff Pelline]
http://news.com.com/Big+media+getting+bigger/2100-1024_3-5452023.html?ta...

MEREDITH CREATES DUOPOLY-LITE
It is great to how creative corporations can be to serve their commercial
interests. Although duopolies are not allowed under FCC rules in Kansas
City, Meredith Broadcasting has purchased from Sinclair the "nonlicense
assets" of WB affiliate KSMO for $26.8 million. The company already owns
the CBS affiliate there. Those assets comprise the building, tower and
staffers, however, B&C reports, that is more like a hefty upfront payment
than the actual value of those assets. Meredith will seek a failed-station
wavier from the FCC, which can allow otherwise impermissible duopolies if
it is to save a distressed station. It will pay $6.7 million for the
license -- probably far less than it is worth -- if FCC rules ultimately
permit it to own a duopoly in KC.
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
http://www.broadcastingcable.com/article/CA480187.html?display=Breaking+...'&referral=SUPP
(free access for Benton's Headlines subscribers)
See also:
TVWeek
http://www.tvweek.com/news.cms?newsId=6717

WEB PUBLISHERS MOVE TOWARD STANDARDIZING AD-VIEWERSHIP DATA
The Internet is one of the few places where advertisers have relied on
publishers to tell them how widely ads are distributed, without third-party
confirmation making advertisers have been cautious about spending on the
medium. But now Web sites are agreeing to standardize the reporting of
ad-viewership numbers, also known as impressions, and for the first time
agreeing to have the numbers audited. Unlike other media, Internet
publishers don't have to rely on sampling. They can examine their Web logs
and see exactly how many times an ad was served to readers. Using the new
standards, they will use consistent methods for counting those readers
[SOURCE: Wall Street Journal, AUTHOR: Carl Bialik carl.bialik( at )wsj.com ]
http://online.wsj.com/article/0,,SB110048058975973783,00.html?mod=todays...
(requires subscription)
See also:
Ad Network Monitors Web Habits
Tacoda, an online marketing company, will announce today the creation of a
network of 60 Web sites that allow its members to display ads based on how
people surf through the network. Tacoda's service, called AudienceMatch,
will not know who those surfers are, just where they visit.
[SOURCE: New York Times, AUTHOR: Bob Tedeschi]
http://www.nytimes.com/2004/11/15/technology/15ecom.html
(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.
--------------------------------------------------------------

*** We're off tomorrow to celebrate Veteran's Day. Hope you are doing the=20
same. See you Friday. ***

TODAY'S QUESTION: If Jonathan Adelstein were a baseball card, would he be a=
=20
Mickey Mantle rookie card? (see story below)

VONAGE/VOIP NOT SUBJECT TO STATE REGULATION, FCC RULES
Vonage Not Subject to State Regulations Governing Telephone Companies
FCC Further Deregulates Net Calls
Telecom Turnaround

MORE FROM FCC
Adelstein=92s Renomination Could Move With Judges
NAB to Fight 'Local' Sat Radio
CE Seeking Changes in DTV Tuner Phase-in on 25"-36" Sets
Monitoring Nationwide Broadband Rollout
Public Safety Access to the Latest Broadband Technology

E-RATE
eRate Flows Again -- '04 Apps Still Pending
2005 Application Window to Open Dec. 14

MEDIA
Pubcasters Hope to Retain =91Strong=92 Bipartisan Support in Senate
From Florida to Fallujah: What the News Coverage Covers Up

QUICKLY
2004 ITU World Telecommunications Standardization Assembly
New Study Release: Untold Stories
Patrick Ross to Progress & Freedom
Iranian Internet Journalists Face Trial Next Week
Net Access Could Knock Down Barriers to Freedom in Iraq

MORE VONAGE COVERAGE/REACTION

VONAGE/VOIP NOT SUBJECT TO STATE REGULATION, FCC RULES

VONAGE NOT SUBJECT TO STATE REGULATIONS GOVERNING TELEPHONE COMPANIES
The FCC declared that a type of Internet telephony service offered by=20
Vonage called DigitalVoice is not subject to traditional state public=20
utility regulation. DigitalVoice customers can use their phones from a=20
broadband connection anywhere in the world, making it difficult to=20
determine whether a call is local, interstate or international in nature=20
and, the FCC ruled, precluding dual state and federal regulatory regimes.=20
The Commission also stated that other types of IP-enabled services, such as=
=20
those offered by cable companies, that have basic characteristics similar=20
to DigitalVoice would also not be subject to traditional state public=20
utility regulation. The decision makes clear that the FCC, not the state=20
commissions, has the responsibility and obligation to decide whether=20
certain regulations apply to IP-enabled services. The Commission has the=20
power to preempt state regulations that thwart or impede federal authority=
=20
over interstate communications. The Commission also found that regulations=
=20
that would have been imposed by the Minnesota Commission were inconsistent=
=20
with the FCC's deregulatory policies, and that preemption was consistent=20
with federal law and policies intended to promote the continued development=
=20
of the Internet, broadband and interactive services.
[SOURCE: Federal Communications Commission]
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-254112A1.doc

FCC FURTHER DEREGULATES NET CALLS
The FCC ruled that states are now barred from imposing telecommunications=20
regulations on Internet phone service providers, which treat calls no=20
differently than any other application on the Internet. A representative=20
for the National Association of Regulatory Utility Commissioners said the=20
states are focusing now on a court hearing in mid-November in which=20
Minnesota utility regulators will argue they have a right to oversee Vonage=
=20
and other Net phone service providers. The state is seeking to overturn a=20
ruling that states cannot subject VoIP providers to their rules. FCC=20
Chairman Powell and two of the four FCC commissioners suggested Tuesday=20
that states still have a role to play -- to protect consumer interests. But=
=20
that may not mollify state utility regulators, who have joined the "growing=
=20
chorus of people" criticizing the FCC for taking a piecemeal approach to=20
VoIP regulation.
CommDaily reports that FCC Wireline Bureau Chief Jeffrey Carlisle told=20
reporters the Commission acted now on the jurisdiction issue, rather than=20
waiting for action on
the broader IP-Enabled Services proceeding, because the upcoming court=
hearing.
By acting now, the FCC adds its expertise to the court=92s deliberation,=20
Chief Carlisle said.
[SOURCE: C-Net|News.com, AUTHOR:Ben Charny]
http://news.com.com/FCC+further+deregulates+Net+calls/2100-7352_3-544488...
ml?tag=3Dnefd.top
FCC Finds Vonage Not Subject to State PUC Regulation
[SOURCE: Communications Daily, AUTHOR: Edie Herman]
(Not available online)

TELECOM TURNAROUND
[Commentary] Yesterday's ruling is the first time the FCC has exempted an=20
Internet voice service from state regulation. If there ever was a candidate=
=20
for national regulation under the Constitution's Commerce clause, this is=20
it. Our telecom network spans the country and is operated by national=20
companies, yet it is still regulated by 50 mini-dictators known as state=20
utility commissions. Charged with protecting the "public interest," these=20
busybodies have a license to micromanage every firm that's ever conjured up=
=20
a dial tone. The resulting web of regulation has retarded innovation and=20
growth. The ruling allows the FCC to sit back and watch the technology=20
grow. More good news, the editorial ends, is that Democratic Commissioner=20
Jonathan Adelstein -- a former Tom Daschle aide -- will soon be making=20
farewells, assuming the White House doesn't renominate him. Mr. Adelstein=20
has been a persistent obstacle to competition in telecom, and to the kind=20
of lower-cost, better-service telephone future that yesterday's FCC vote=20
heralds.
[SOURCE: Wall Street Journal, AUTHOR: WSJ Editorial Staff]
http://online.wsj.com/article/0,,SB110005280187269776,00.html?mod=3Dtoda...
s_opinion
(requires subscription)

*** This decision has generated a bit of controversy and a good deal of=20
reaction. For more coverage of the story and reaction from many, many=20
organizations, see sections at the end of this email. ***

MORE FROM FCC

ADELSTEIN'S RENOMINATION COULD MOVE WITH JUDGES
Don't pack those bags so quickly, FCC Commissioner Adelstein. Because=20
judicial nominations can take so long to move through Congress, President=20
Bush may be interested in nominating you for another term, if Senate=20
Democrats will confirm a number (80-100) judges that have been held up by=20
the body. As one House Republican staffer said, =93I'll take Jonathan=20
Adelstein for 80 judges any day of the week.=94 Many Senators -- from both=
=20
sides of the aisle -- have expressed their support for Commissioner=20
Adelstein. Congress will resume Nov. 16 for a session designed to finish=20
nearly 10 appropriations bills, an intelligence reform bill, and several=20
other lingering issues.
In a separate story, it was reported widely yesterday that Chairman Michael=
=20
Powell intends to stay on at the FCC for now. There has been speculation=20
that he would leave shortly after the election.
[SOURCE: Communications Daily, AUTHOR: Terry Lane]
(Not available online)

NAB TO FIGHT 'LOCAL' SAT RADIO
The National Association of Broadcasters Tuesday vowed to continue fighting=
=20
locally targeted traffic and weather reports by satellite radio despite=20
withdrawing its petition asking the FCC to prohibit them. The FCC several=20
weeks ago was moving toward rejecting NAB's request but the NAB's pending=20
withdrawal of the petition apparently prompted the commission to hold off=20
on a ruling. For now, the satellite radio industry is gloating and contends=
=20
NAB withdrew its petition to "save face" rather than suffer a public=20
defeat. "This a complete vindication of our position that XM has complied=20
and continues to comply with FCC rules," the company said in a statement.
[SOURCE: Broadcasting&Cable, AUTHOR: Bill McConnell]
http://www.broadcastingcable.com/article/CA479302.html?display=3DBreakin...
ws&referral=3DSUPP
(free access for Benton's Headlines subscribers)
See the NAB's request to dismiss the petition at
http://www.nab.org/newsroom/pressrel/filings/SDARSMotiontoDismiss11804.pdf

CE SEEKING CHANGES IN DTV TUNER PHASE-IN ON 25"-36" SETS
The Consumer Electronics industry petitioned the FCC to move up the=20
deadline by which all TV sets with 25"-36" screen sizes must have ATSC=20
tuners. The Consumer Electronics Association (CEA) and the Consumer=20
Electronics Retailers Coalition (CERC), in a joint petition, asked that the=
=20
July 2006 date by which all such receivers must have DTV tuners be moved up=
=20
to March 2006 and that the July 2005 date by which 1/2 the sets must be=20
ATSC-capable be eliminated. They cited unforeseen and =93unduly disruptive=
=94=20
consequences of the Commission=92s phase-in schedule.
[SOURCE: Communications Daily, AUTHOR: Paul Gluckman]
(Not available online)
See Press Release at
http://www.ce.org/press_room/press_release_detail.asp?id=3D10599

MONITORING NATIONWIDE BROADBAND ROLLOUT
The FCC voted to collect additional information about the nationwide=20
availability of broadband and local telephone competition in order to=20
better monitor the status of these critical services. Broadband providers=20
will be required to provide more detailed information on the speed and=20
nature of their service. Broadband-over-power line will be a
separate category in order to track deployment more closely. To better=20
assess broadband availability, incumbent telephone and cable companies will=
=20
be asked to report the extent to which their DSL and cable modem service is=
=20
available where they provide phone or cable television service. The=20
Commission will require local telephone companies, known as local exchange=
=20
carriers or LECs, to report how many of their local service customers also=
=20
subscribe to the LEC=92s long distance service. The data will help the=20
Commission understand how bundling affects local telephone service=20
competition. To better track the dynamics of rural and underserved markets,=
=20
the Commission will require all facilities-based carriers to report,=20
regardless of their size.
[SOURCE: Federal Communications Commission]
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-254115A1.doc

PUBLIC SAFETY ACCESS TO THE LATEST BROADBAND TECHNOLOGY
The Commission revised technical specifications in the 4.9 GHz band to=20
allow manufacturers to adapt, for that band, technologies that are being=20
used in adjacent spectrum bands, such as the 5.4 GHz Unlicensed National=20
Information Infrastructure (U-NII) unlicensed band and the Intelligent=20
Transportation System (ITS) band. The Commission envisioned that, by=20
leveraging technology already developed for adjacent bands, public safety=20
licensees could use a single, low-cost device to access the 4.9 GHz band,=20
the U-NII band, and the ITS band, allowing them to enjoy savings that are=20
typically limited to the high-volume commercial market. The Commission's=20
action is intended to provide emergency responders with easier access to=20
the latest broadband technology in support of public safety and homeland=20
security missions, such as wireless local area networks for incident scene=
=20
management, emergency dispatch operations, and emergency vehicular=
operations.
[SOURCE: Federal Communications Commission]
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-254117A1.doc

E-RATE

ERATE FLOWS AGAIN -- '04 APPS STILL PENDING
The Universal Service Administrative Co. (USAC) has announced that it will=
=20
begin mailing funding commitments again and expects at least one wave of=20
funding commitments per month moving forward. This slow trickle of eRate=20
funds has prompted a broad coalition of education groups, known as the=20
Education and Libraries Networks Coalition (EdLiNC), to lobby members of=20
Congress to draft a bill that would exempt the eRate and Rural Health Care=
=20
programs from the Anti-Deficiency Act. With this simple waiver, the eRate=20
could go back to issuing funding commitment letters the way it always had,=
=20
regardless of how much money is in the bank. Apparently, FCC Chairman=20
Michael Powell supports such an exemption. The Wall Street Journal reported=
=20
that the FCC has not applied the law to the High Cost, Low Income program=20
because doing so could have a devastating effect on the entire Universal=20
Service program. It would mean phone companies would have to contribute 25=
=20
percent of their long-distance revenue in addition to their current=20
payments, the Journal reported. "That's the nightmare scenario," Frank=20
Gumper, chairman of USAC's board of directors, told the Journal. "By then,=
=20
these programs would be on the verge of collapsing."
[SOURCE: eSchool News, AUTHOR: Cara Branigan]
http://www.eschoolnews.com/news/showStoryts.cfm?ArticleID=3D5376

2005 APPLICATION WINDOW TO OPEN DEC 14
Though the status of eRate applications from 2003 should be resolved=20
shortly, most 2004 applicants will still be wondering how much eRate=20
funding they are to receive before it's time for them to apply again for=20
2005 funding. The Schools and Libraries Division of USAC announced on Nov.=
=20
5 that applicants will have 66 days in which to file applications the 2005=
=20
funding year. The application window, which is scheduled to open more than=
=20
a month later than previous years and is shorter than the typical 75 days,=
=20
will open Dec.14 and close Feb. 17.
[SOURCE: eSchool News, AUTHOR: Cara Branigan]
http://www.eschoolnews.com/news/showStory.cfm?ArticleID=3D5377
See the USAC announcement at
http://www.sl.universalservice.org/whatsnew/2004/112004.asp#110504

MEDIA

PUBCASTERS HOPE TO RETAIN 'STRONG' BIPARTISAN SUPPORT IN SENATE
Public broadcasters believe they will still have strong, bi-partisan=20
support in the Senate, but are worried they could be hit because of an=20
upcoming budget crisis. Association of Public TV Stations (APTS) President=
=20
John Lawson said, "the problem is they are not going to have a whole lot of=
=20
money to spend.=94 The broadcasters are preparing grassroots efforts to=20
protect funding for public broadcasting. Next year, public broadcasting=20
will still have to fight against an administration bent against forward=20
funding of the Corporation for Public Broadcasting, but APTS is hopeful of=
=20
passage of a CPB reauthorization bill that gained unanimous support in the=
=20
Senate Commerce Committee this year. APTS is still working with Congress on=
=20
an idea to create a trust fund for public broadcasting in return for a=20
voluntary quick end to analog broadcasting by public TV stations.
[SOURCE: Communications Daily, AUTHOR: Dinesh Kumar]
(Not available online)

FROM FLORIDA TO FALLUJAH: WHAT THE NEWS COVERAGE COVERS UP
[Commentary] Media coverage lurches from event to event, and from spectacle=
=20
to spectacle as a substance deficit disorder hyperactively drives the news=
=20
agenda. No sooner are we focused on one major story, than another intrudes=
=20
to change the subject and insure that there is no time for follow-up, much=
=20
less thoughtful processing. In some cases, this is the natural disorder of=
=20
news, but in many others, there are hidden hands shifting the agenda in a=20
conscious effort not simply to influence what we think, but control what we=
=20
think about. Schecter uses the example of the current campaign in Fallujah=
=20
to highlight attempts to shape news narrative.
[SOURCE: Mediachannel.org, AUTHOR: Danny Schechter]
http://www.mediachannel.org/views/dissector/affalert288.shtml

QUICKLY

2004 ITU WORLD TELECOMMUNICATIONS STANDARDIZATION ASSEMBLY
International Bureau reported to the Commission on the 2004 International=20
Telecommunication Union (ITU) World Telecommunication Standardization=20
Assembly (WTSA) and the next steps for the Commission resulting from the=20
conference. The conference, among other things, adopted the work plan for=20
the ITU Telecommunication Standardization Sector over the next four years=20
which focuses on communications, network security, and maintaining=20
interoperability between current and next-generation networks. In=20
addition, the WTSA addressed communications issues challenging countries=20
around the world, including the transition from traditional communications=
=20
networks to new technologies.
[SOURCE: Federal Communications Commission]
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-254099A1.doc

UNTOLD STORIES: CREATIVE CONSEQUENCES OF THE RIGHTS CLEARANCE CULTURE FOR=20
DOC FILMMAKERS
This study explores the implications of the rights clearance process on=20
documentary filmmaking, and makes recommendations to lower costs, reduce=20
frustration, and promote creativity. It focuses on the creative experience=
=20
of independent, professional documentary filmmakers.
[SOURCE: Center for Social Media, AUTHOR: Pat Aufderheide and Peter Jaszi]
http://www.centerforsocialmedia.org/rock/finalreport.htm

PATRICK ROSS TO PROGRESS & FREEDOM
Patrick Ross has been named vice president for communications and external=
=20
affairs at The Progress & Freedom Foundation. Ross most recently managed=20
Washington Internet Daily and reported for its sister publication,=20
Communications Daily. He was also the first Washington Bureau Chief for=20
CNet|News.com.
The Progress & Freedom Foundation is a market-oriented think tank that=20
studies the digital revolution and its implications for public policy.
http://www.pff.org/news/news/2004/110904rossrelease.html

IRANIAN INTERNET JOURNALISTS FACE TRIAL NEXT WEEK
In Iran, the Internet has become a refuge for reformist journalists who=20
lost their jobs when the country's judiciary closed more than 100=20
pro-reform publications in the past four years. But at least nine=20
journalists writing on online journals known as weblogs and news-based=20
Internet sites have been detained by the judiciary since September and they=
=20
will face trial beginning next week accused of spreading propaganda against=
=20
the Islamic state. International human rights groups criticized the lack of=
=20
freedom of expression in Iran which they say has more journalists in jail=20
than any other country in the Middle East.
[SOURCE: Reuters]
http://www.reuters.com/newsArticle.jhtml?type=3DinternetNews&storyID=3D6...
37

NET ACCESS COULD KNOCK DOWN BARRIERS TO FREEDOM IN IRAQ
There could be no more effective way to promote democracy and free markets=
=20
in Iraq than to significantly boost the number of Iraqis using the=20
Internet. Can we send Steve Case there?
[SOURCE: USAToday, AUTHOR:]
http://www.usatoday.com/printedition/money/20041110/maney10.art.htm

ADDITIONAL COVERAGE OF VONAGE DECISION

FCC Includes Cable in Vonage Ruling
Republican FCC Commissioner Kevin Martin adopted cable=92s cause and won the=
=20
internal battle to broaden the staff=92s recommendation and include cable=20
telephony services.
[SOURCE: Multichannel News, AUTHOR: Ted Hearn]
http://www.multichannel.com/article/CA479292.html?display=3DBreaking+News
(requires subscription)

FCC Hands Cable the Phone
[SOURCE: Broadcasting&Cable, AUTHOR: Bill McConnell]
http://www.broadcastingcable.com/article/CA479288?display=3DBreaking+New...
ferral=3DSUPP
(free access for Benton's Headlines subscribers)

F.C.C. Takes on Oversight of Internet Phone Services
[SOURCE: New York Times, AUTHOR: Stephen Labaton]
http://www.nytimes.com/2004/11/10/technology/10fcc.html
(requires registration)

FCC Gives Vonage Interstate Status In Win for Internet-Phone Firms
[SOURCE: Wall Street Journal]
http://online.wsj.com/article/0,,SB110001796704968961,00.html?mod=3Dtoda...
s_page_one
(requires subscription)

FCC Asserts Role as Internet Phone Regulator
[SOURCE: Washington Post, AUTHOR: Yuki Noguchi]
http://www.washingtonpost.com/wp-dyn/articles/A37972-2004Nov9.html
(requires registration)

FCC declares authority over states on VoIP
[SOURCE: San Jose Mercury News, AUTHOR:John Woolfolk]
http://www.mercurynews.com/mld/mercurynews/business/technology/10143621.htm

FCC Exempts VOIP From State Rules
[SOURCE: Los Angeles Times, AUTHOR:Jube Shiver Jr.]
http://www.latimes.com/business/printedition/la-fi-fcc10nov10,1,6220451....
y?coll=3Dla-headlines-pe-business
(requires registration)

REACTION TO VONAGE DECISION

* FCC Chairman Powell: Since 1870 home telephone service has been=20
essentially the same-two phones connected by a wire. This landmark order=20
recognizes that a revolution has occurred. Internet voice services have=20
cracked the 19th Century mold, to the great benefit of consumers. VoIP=20
services certainly enable voice communications between two or more people,=
=20
just as the traditional telephone network does, but that is where the=20
similarity ends. Internet voice is an Internet application that takes its=
=20
place alongside email and instant messaging as an incredibly versatile tool=
=20
for communicating with people all over the world. As such it has truly=20
unique characteristics. VoIP is customizable, global, inexpensive.
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-254112A2.doc

* FCC Commissioner Copps: While I agree that traditional jurisdictional=20
boundaries are eroding in our new Internet-centric world, we need a clear=20
and comprehensive framework for addressing this new reality. Instead the=20
Commission moves bit-by-bit through individual company petitions, in effect=
=20
checking off business plans as they walk through the door. This is not the=
=20
way we should be proceeding. We need a framework for all carriers and all=
=20
services, not a stream of incremental decisions based on the needs of=20
individual companies. We need a framework to explain the consequences for=
=20
homeland security, public safety and 911. We need a framework for consumer=
=20
protection. We need a framework to address intercarrier compensation,=20
state and federal universal service, and the impact on rural America. But=
=20
all I see coming out of this particular decision is . . . more questions.
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-254112A4.doc

* FCC Commissioner Adelstein: Where this Order falls short is its failure=20
to account in a meaningful way for essential policy issues, including=20
universal service, public safety, law enforcement, consumer privacy,=20
disabilities access, and intercarrier compensation, and the effect of our=20
preemption here.
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-254112A5.doc

* Michael D. Gallagher, Assistant Secretary of Commerce for Communications=
=20
and Information: Today's FCC decision is a big step forward for advanced=20
communications in the United States. Voice communications over the Net have=
=20
been cleared for takeoff. The FCC has acted to keep the Internet--an=20
inherently global network--unburdened by costly state regulation. As a=20
result, a rich variety of IP services benefiting U.S. consumers and=20
businesses will be accelerated. Today's vote is going to keep the U.S. on=20
the cutting edge of innovation."
http://www.ntia.doc.gov/ntiahome/press/2004/fccvonage_11092004.html

* Consumer Advocates: =93The FCC took all of the authority and none of the=
=20
responsibility,=94 said Mark Cooper, director of research for Consumer=20
Federation of America. =93This ruling gave VoIP providers everything they=20
asked for, but did not consider what consumers need. New technologies such=
=20
as VoIP could be a great benefit to consumers, but this piecemeal approach=
=20
to tackling the tough public policy questions puts consumers at risk.=94
Added Janee Briesemeister, senior policy analyst for Consumers Union: =93By=
=20
approving the Vonage petition, the FCC tied the hands of state regulators=20
who have asserted that VoIP is no different than traditional phone service=
=20
in terms of public safety, universal service and consumer protection.
=93If the FCC thinks the states don't have the authority to ensure public=20
safety, consumer protection and universal service for consumers, then it=20
should have provided a framework for doing so =97 but it did not,=94=20
Briesemeister added. "Companies are now free to market VoIP as an=20
alternative to traditional phone service, while consumers are left in limbo=
=20
over vital issues, such as whether E911 will work on their Internet phone.=
=94
http://www.consumersunion.org/pub/core_telecom_and_utilities/001607.html...
e

* Association for Local Telecommunications Services is "pleased with the=20
Commission=92s decision to maintain a light regulatory touch over Vonage=92s=
=20
service. At the same time, the Commission must acknowledge that such retail=
=20
VoIP services are not themselves alternatives to underlying bottleneck=20
facilities that these services ride over,=94 said ALTS General Counsel Jason=
=20
Oxman. "VoIP providers like Vonage do not own their own transmission=20
facilities and, under the 1996 Telecommunications Act, cannot directly=20
access the Bell companies=92 network facilities necessary to serve their=20
customers. VoIP providers therefore work extensively with competitive LECs=
=20
to access the necessary underlying networks,=94 said Mr. Oxman. =93The FCC=
must=20
continue to recognize that VoIP services will only be available to=20
consumers and small businesses if
the Commission maintains its requirement that incumbent LECs make access to=
=20
loops and transport available at cost-based rates.=94
http://206.161.82.210/NewsPress/110904VonagePetition.pdf

* CompTel/ASCENT CEO H. Russell Frisby Jr.: =93By declaring VoIP traffic as=
=20
interstate in nature, the FCC is taking an important step to encourage=20
competitive telecom service alternatives for consumers and to foster=20
entrepreneurship by those willing to explore new businesses and deploy=20
cutting-edge technology.
As one of the key tenets of CompTel/ASCENT=92s March 2004 VoIP Policy=20
Principles, federal oversight will allow VoIP and other IP-based network=20
applications the opportunity to gain acceptance without being hampered by=20
different =AD and at many times conflicting =AD rules on a state-by-state=
basis.
To foster further development of VoIP, CompTel/ASCENT believes that any=20
decision to regulate =AD or not to regulate =AD should be consistently=
applied=20
to the various network configurations designed to carry VoIP traffic. Most=
=20
importantly, access to underlying physical networks should not be allowed=20
to create a bottleneck that will foreclose on the ability of all providers=
=20
to deliver the services their customers choose.=94
http://www.comptelascent.org/news/recent-news/110904.html

* Consumer Electronics Association President and CEO Gary Shapiro: "It is=20
clear that advancement of VoIP services is a key element in driving=20
consumer demand and adoption of broadband. There is a unique synergy=20
between VoIP and broadband that allows each to be used as a purchase=20
incentive for the other. Today's action by the Commission is a strong step=
=20
toward regulatory clarity, which is needed to advance VoIP services that=20
will provide enormous benefits to consumers and the economy. We commend the=
=20
FCC's leadership in taking action to avoid a patchwork of state regulations=
=20
that would stifle the advancement of this new form of communication."
http://www.ce.org/press_Room/press_release_detail.asp?id=3D10598

* CTIA-The Wireless Association=99 President and CEO Steve Largent: =93We=20
applaud the FCC for recognizing the fundamental interstate and=20
international characteristics of IP-enabled services. Much like wireless,=
=20
one of the primary benefits of IP-enabled service is its ability to deliver=
=20
data to a consumer at anytime, in any place, from any location with=20
broadband access. CTIA strongly agrees that such services should be free=20
to develop under a single, unified regulatory framework, unencumbered by=20
conflicting state public utility regulations. Furthermore, the=20
competitive and innovative forces driving IP-enabled service to the=20
marketplace will =AD like wireless service - provide consumers with more=20
choices and lower prices.
The FCC=92s action today recognizes the harm that a patchwork of state=20
utility regulations can pose to the development and proliferation of=20
inherently interstate services such as VoIP and wireless. By establishing a=
=20
uniform, nationwide regulatory framework, IP-enabled services will avoid=20
the costly inefficiencies that accompany a patchwork of inconsistent and=20
varying regulatory schemes. This ruling is of great significance to the=20
consumer seeking these new and innovative services in the most=20
cost-effective manner possible.=94
http://www.ctia.org/news_media/press/body.cfm?record_id=3D1466

* Robert Sachs, President & CEO National Cable & Telecommunications=20
Association: =93By establishing a national framework for the regulation of=
=20
Voice over Internet Protocol (VoIP) services, the FCC has taken a=20
significant step towards promoting competition in enhanced voice=20
services. As facilities-based VoIP providers, cable companies offer=20
consumers sustainable, high quality voice services. We believe the=20
Commission's decision will further incent companies to invest in this=20
exciting new technology.=94

* Walter B. McCormick, Jr., President and CEO of USTA: "In today=92s rapidly=
=20
evolving communications market, the Commission=92s action is a necessary=
step=20
to ensure that innovative, borderless communications are not hindered by=20
outdated, conflicting regulatory schemes from fifty-one different local=20
jurisdictions. While this move acknowledges the tremendous changes in=20
communications, in future proceedings the Commission must ensure that=20
market-based competition thrives in an environment where all technologies=20
compete under the same rules. The Commission must also set a competitive=20
framework that encourages investment in the infrastructure and shares the=20
responsibility for maintaining the networks.=94
http://www.usta.org/news_releases.php?urh=3Dhome.news.nr2004_1109

* VON Coalition: The FCC today embraced the future of VoIP by ensuring it=20
will be free from a patchwork of multiple - and inevitably conflicting -=20
state jurisdictions. The VON Coalition praises today's decision to declare=
=20
VoIP an interstate service, but cautions that this is only one small step=20
toward unleashing the full promise and
potential of VoIP. The FCC now must act quickly to reform the badly broken=
=20
intercarrier compensation system and make sure new technologies and=20
services will not be hindered by a scheme to subsidize old networks. We=20
look forward to working with Congress, the FCC and the states, as well as=20
rural, urban, and other interests, to forge original yet pragmatic=20
solutions that enable consumers, businesses, and the economy to achieve the=
=20
full promise and potential that VoIP can deliver.=94
http://www.von.org/usr_files/JurisdictionStatementFINAL.pdf
The Voice on the Net or VON Coalition consists of VoIP companies.

* National Telecommunications Cooperative Association (NTCA) Chief=20
Executive Officer Michael E. Brunner: =93While we appreciate the FCC=92s=
desire=20
to foster consumer choice in the telecom marketplace, this announcement=20
does nothing to enhance those choices. This may lead to putting the=20
national telecom infrastructure in jeopardy. By getting a free ride on that=
=20
infrastructure without compensating the carriers that maintain these=20
networks, VoIP providers continue to gain a significant advantage. And, by=
=20
usurping states=92 ability to regulate these providers, the commission has=
=20
created an unfair competitive advantage over those telecom carriers that=20
are regulated at both the state and federal levels. We disagree with the=20
FCC=92s decision to give preference to one technology and tilting the=20
competitive advantage in VoIP=92s favor to the detriment of other=
technologies."
http://www.ntca.org/ka/ka-3.cfm?content_item_id=3D2705&folder_id=3D298
NTCA represents nearly 600 locally owned and controlled telecommunications=
=20
cooperatives and commercial companies throughout rural and small-town=
America.
--------------------------------------------------------------