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MEDIA
White House: No Digital TV Subsidy
Sinclair Shares Surge
Michael Copps: An FCC Commissioner Taking on Big Media
MMTC Wins Dispute Over FCC FM Auction Rules
ACA: Big-Media Bundling Raises Rates
CPB Grants Help More Local Public Radio Stations Move Toward Digital=
Services

ED TECH
Schools Lose Net Over E-rate Freeze
Schools Dial Up Cell-Phone Content

QUICKLY
U.S. Elections Are to Set Record For Spending at $3.9 Billion
A Global Assault On Anonymity
No News Is Good News For Russia's CTC TV
They Can Hear You Now

MEDIA

WHITE HOUSE: NO DIGITAL SUBSIDY
In a letter to House Intelligence Committee Chairman Hoekstra (R-MI) and=20
Senate Government Affairs Chairman Collins (R-ME) the White House said a=20
proposal for a $1 billion subsidy for digital converter boxes isn't=20
necessary to speed the transition to digital TV. "Creating a billion dollar=
=20
fund to subsidize consumer electronics such as digital converter boxes,=20
high-definition televisions, and the installation of cable and satellite=20
services is not necessary to achieve the 9/11 Commission=92s=
recommendations,=94
the letter said. Instead, the Bush Administration is pushing its idea of an=
=20
analog spectrum fee on broadcasters to =93encourage faster return of analog=
=20
TV spectrum.=94
[SOURCE: Communications Daily, AUTHOR: Terry Lane]
(Not available online)

SINCLAIR SHARES SURGE
Wall Street speaks and Sinclair smiles. The company's stock rose 12% after=
=20
Sinclair said it is not planning to air in its entirety "Stolen Honor:=20
Wounds That Never Heal," a documentary critical of Mr. Kerry's Vietnam War=
=20
record, but instead will include excerpts of the film as part of a broader=
=20
discussion about attempts to influence voting via the media and=
documentaries.
[SOURCE: TVWeek, AUTHOR: Jay Sherman]
http://www.tvweek.com/news.cms?newsId=3D6568
See also --
NYTimes: http://www.nytimes.com/2004/10/21/politics/campaign/21sinclair.html
Includes a review of "Stolen Honor":=20
http://www.nytimes.com/2004/10/21/arts/television/21stan.html

MICHAEL COPPS: AN FCC COMMISSIONER TAKING ON BIG MEDIA
With the FCC's media ownership rules overturned by Congress or thrown out=20
by the courts, is FCC Commissioner Michael Copps, who opposed the rules=20
changes, happy? "The rules were sent back to the same Commission that=20
dreamed them up in the first place," he says. "So it's still conceivable=20
that we could come out with rules every bit as bad, or worse, than the ones=
=20
that were sent back." He sees media ownership as a grassroots issue and=20
that's why he has tried so hard to include the public in the process. He=20
also thinks media ownership concentration is a concern that crosses=20
partisan boundaries. Media ownership concentration, he says, "does not take=
=20
care of protecting the public interest, or enhancing our democratic=20
dialogue, or giving us diversity and localism in our media." Although the=20
issue is not getting much mention during the campaign, Commissioner Copps=20
believes it tops the domestic agenda.
[SOURCE: AP, AUTHOR: Frazier Moore]
http://www.sfgate.com/cgi-bin/article.cgi?file=3D/news/archive/2004/10/1...
tertainment1701EDT0243.DTL&type=3Dtvradio

MMTC WINS DISPUTE OVER FCC AUCTION RULES
The Minority Media & Telecom Council (MMTC) won its 3-year battle with the=
=20
FCC over FM auction rules. MMTC had claimed the old rules promoted fraud=20
and undermined the integrity of auction bidding credits, the Commission=92s=
=20
only significant policy aimed at fostering minority broadcast ownership.=20
The FCC on Monday identified 456 applicants who qualified to bid in the=20
upcoming auction for 288 FM broadcast construction permits (Auction 37).=20
The auction will begin Nov. 3. The auction is =93the last best=94 chance=20
offered by the FCC for minorities to acquire a significant number of new FM=
=20
facilities, mostly in rural areas, MMTC's David Honig said.
[SOURCE: Communications Daily, AUTHOR: Tania Panczyk-Collins]
(Not available online)

ACA: BIG-MEDIA BUNDLING RAISES RATES
The American Cable Association (ACA), which represents 1,000 cable=20
companies with more than 8 million subscribers, is telling the FCC that=20
media conglomerates -- Time Warner, Viacom, GE/NBC, Disney and Fox -- are=20
using their leverage to reach programming-carriage deals that squeeze out=20
independent programmers and cause cable rates to rise. The media giants=20
often allow channels to be purchased individually by small operators, but=20
are priced to make large bundles more affordable. =93For smaller cable=20
companies, this presents no meaningful choice. They must buy the bundle,=94=
=20
ACA told the FCC in a letter. The ACA told the FCC that these wholesale=20
offerings meant that small cable companies were forced to buy more=20
programming than they wanted, and having to do so raised cable rates.=20
Carriage of big bundles, the trade group added, also took up capacity that=
=20
small operators wanted to earmark for independent programmers.
[SOURCE: Multichannel News, AUTHOR: Ted Hearn]
http://www.multichannel.com/article/CA473988.html?display=3DBreaking+News
(requires subscription)

CPB GRANTS HELP MORE LOCAL PUBLIC RADIO STATIONS MOVE TOWARD DIGITAL=
SERVICES
On Wednesday, The Corporation for Public Broadcasting (CPB) announced=20
grants totaling more than $9 million to help 133 local public radio=20
stations, including 71 serving rural and minority audiences, purchase the=20
equipment needed to transition to digital radio. The announcement marks the=
=20
third round of grants to bring digital radio technology to public local=20
stations. Digital technology will enhance significantly the quality and=20
scope of program services, as well as provide richer quality sound than is=
=20
currently available. CPB is encouraging and supporting the early adoption=20
of this promising new technology by providing matching funds to eligible=20
stations. CPB has awarded grants to 285 public radio stations and 170=20
public television stations to begin their digital transition. Additional=20
awards for public television to convert to digital also will be announced=20
this fall. These funds are part of the nearly $150 million in funding that=
=20
Congress has provided to CPB over the last four years to assist both public=
=20
radio and public television stations to convert from analog transmission to=
=20
digital.
[SOURCE: Corporation for Public Broadcasting Press Release]
http://www.cpb.org/programs/pr.php?prn=3D382

ED TECH

SCHOOLS LOSE NET OVER E-RATE FREEZE
A long article on the effects of the E-Rate funding freeze. Some school=20
districts, notably in remote Alaska in this piece, are shutting down their=
=20
Internet access until E-Rate funding commitment letters arrive. Without the=
=20
commitment letters, schools and libraries have no guarantee that their=20
services and projects have been approved. Even after funding is restarted,=
=20
delays will likely persist indefinitely. Because the fund's administrator=20
can send out letters only after it has collected money from service=20
providers, it will be able to allocate only a portion of the remaining $1.7=
=20
billion. Schools and libraries will undoubtedly continue to feel the=20
crunch, but so will the service providers and vendors supplying them.=20
Because some schools and libraries depend on the previous year's E-Rate=20
reimbursement to front the cost of continuing their services, a delay in=20
the process could impact carriers. Some carriers have announced they will=20
continue to offer service until funds start flowing again. But continued=20
delays could put these carriers in precarious financial situations of their=
=20
own.
[SOURCE: C-Net|News.com, AUTHOR: Marguerite Reardon]
http://news.com.com/Schools+lose+Net+over+E-rate+freeze/2100-1038_3-5419...
html?tag=3Dst.num

SCHOOLS DIAL UP CELL-PHONE CONTENT
Cell phones are one of most ubiquitous portable technology devices=20
available to students. According to NetDay's "Speak Up Day for Students=20
2003" survey, 70% of students in grades 6-12 and 61% of students in grades=
=20
3-6 said they use a cell phone either in school or during their free time.=
=20
A small number of schools are making the most of the devices' popularity by=
=20
finding legitimate educational and instructional uses for them. "It allows=
=20
cell phones to be viewed more as educational tools than simply for=20
recreational use," said Nick Rago, director of HomeWorkNow.com, a=20
homework-management web site that recently began allowing students to=20
access its content via web-enabled cell phones and personal digital=20
assistants (PDAs).
[SOURCE: eSchool News, AUTHOR: Cara Branigan]
http://www.eschoolnews.com/news/showStoryts.cfm?ArticleID=3D5326

QUICKLY

U.S. ELECTIONS ARE TO SET RECORD FOR SPENDING AT $3.9 BILLION
How's campaign finance reform doing? This year's presidential and=20
congressional campaigns will cost a record $3.9 billion, 30% more than the=
=20
$3 billion spent four years ago, according to the Center for Responsive=20
Politics. The bulk of the money -- $2.5 billion -- came from individuals'=20
donations to federal candidates and political parties. The presidential=20
race alone will cost an estimated $1.2 billion, fueled by massive spending=
=20
from a host of partisan groups called 527s. Overall, 527 groups have poured=
=20
$386 million into federal elections. Political-action committees have also=
=20
raked in $384 million for this year's elections. The significant increase=20
in overall fund raising suggests that the McCain-Feingold campaign-finance=
=20
law hasn't stemmed the flow of political contributions, just changed the=20
channels for giving. McCain-Feingold, which was passed in 2002, banned=20
corporations and unions from giving "soft money" to national political=20
parties while also raising the limit individuals can donate.
[Maybe we should try another election when the law is actually enforced?=20
Just an idea.]
[SOURCE: Wall Street Journal, AUTHOR: Nicholas Zamiska=20
nicholas.zamiska( at )wsj.com]
http://online.wsj.com/article/0,,SB109831453875951304,00.html?mod=3Dtoda...
s_page_one
(requires subscription)

A GLOBAL ASSAULT ON ANONYMITY
Headlines may not be your one-stop for privacy issues, but News.com is=20
running a series on domestic security this week including this piece on=20
balancing security and privacy. For more on the intersection of technology,=
=20
security and privacy visit EPIC (www.epic.org) or the Center for Democracy=
=20
and Technology (www.cdt.org).
[SOURCE: C-Net|News.com, AUTHOR: John Borland]
http://news.com.com/2009-1009_3-5405947.html?tag=3Ddasec

NO NEWS IS GOOD NEWS FOR RUSSIA'S CTC TV
Hampered by a Kremlin crackdown, Russia's independent media outlets are=20
searching for ways to survive. CTC, a television channel based in the=20
suburbs here, has a novel strategy: no news, no pundits, no pissing off=20
President Putin. [Say that five times fast.] Who needs government=20
censorship when you can do it yourself?
[SOURCE: Wall Street Journal, AUTHOR: Guy Chazan at guy.chazan( at )wsj.com]
http://online.wsj.com/article/0,,SB109830242371150889,00.html?mod=3Dtoda...
s_marketplace
(requires subscription)

THEY CAN HEAR YOU NOW
Today, the world's fastest-growing cellphone markets are in places like=20
Iquitos in rural South America and in sub-Saharan Africa, despite=20
widespread poverty. For millions of people living in countries where=20
getting a fixed phone line remains a bureaucratic impossibility, the=20
cellphone revolution has allowed them to leapfrog from archaic forms of=20
communication straight into the digital era -- and that is changing the=20
fabric of their daily lives.
[SOURCE: Los Angeles Times, AUTHOR:H=E9ctor Tobar]
http://www.latimes.com/news/printedition/front/la-fg-cellular21oct21,1,2...
17.story?coll=3Dla-headlines-frontpage
(requires registration)
--------------------------------------------------------------
Communications-related Headlines is a free online news summary service=20
provided by the Benton Foundation (www.benton.org). Posted Monday through=20
Friday, this service provides updates on important industry developments,=20
policy issues, and other related news events. While the summaries are=20
factually accurate, their often informal tone does not always represent the=
=20
tone of the original articles. Headlines are compiled by Kevin Taglang=20
(headlines( at )benton.org) -- we welcome your comments.
--------------------------------------------------------------

FCC Commissioner Michael Copps and Congressman Maurice Hinchey (D-NY) will=
=20
appear at a public forum on media ownership today at Ithaca College. For=20
upcoming media policy events, see http://www.benton.org/calendar.htm

TV & ELECTIONS
Sinclair Fires Journalist After Critical Comments
Pro-Kerry Vets Group Demands Equal Time
Sinclair Broadcasting Takes a Beating
Election Ad Buys Reveal A Tale of 2 (TV) Cities
Viacom Blocking Independent Political Ads

MEDIA
Bill Could Cost EchoStar $100M
Group Asks Max Fine for Earnhardt Expletive
NCTA: Cable Protected from Violence Regs

QUICKLY
Calling for a Regulatory Overhaul, Bit by Bit
Bells Play Hardball With Numbers
The Texas Broadband Follies
Cisneros Affiliate Sues News Corp., DirecTV Over Deal
Web Radio Gets $1.7 Billion Boost
Hollywood's New Director
TV: Saving One Life at a Time

TV & ELECTIONS

SINCLAIR FIRES JOURNALIST AFTER CRITICAL COMMENTS
Sinclair on Monday fired its Washington bureau chief, Jon Leiberman, after=
=20
the newsman publicly protested plans for a program about Sen. John F.=20
Kerry's anti-Vietnam War activities that is scheduled to run this week on=20
about 60 Sinclair-owned stations. Leiberman, who started at the Sinclair=20
Washington bureau more than a year ago, said he told his supervisor Sunday=
=20
that "as an objective journalist, I can't be part of this program and I=20
won't be a part of this program," adding: "We work too hard for credibility=
=20
in this business." He said that he wasn't protesting Sinclair's decision to=
=20
air the program -- just its plan to label it as news. "I would have=20
preferred that they did it in the context of an editorial or a commentary=20
or a programming special, but to call this news and to put this under the=20
guise of a news program, in my opinion, is wrong," he said. Leiberman also=
=20
said, in an interview on CNN, that "I feel that our company is trying to=20
sway this election" in favor of President Bush. Before he was fired,=20
Leiberman said he was speaking out because at Sinclair, "there is such a=20
big influence in the newsroom from editorial and higher-ups in the=20
company=85. My hope at the end of the day is that this just wakes up some=20
people in our company and we just do a better job at being fair, that what=
=20
we call news is news, what we call commentary is commentary." Leiberman=20
also indicated that a meeting at Sinclair over the weekend was the first=20
time the company's news staff was involved in the program. Sinclair=20
executives told news employees that the ad-free broadcast would probably=20
now include about 15 minutes of "Stolen Honor," as well as several news=20
pieces about the controversy, the Vietnam-era military service of Sen Kerry=
=20
and President Bush, and why voters should care the about 30-year-old=20
events. The program, which isn't scheduled to be finished until just before=
=20
some Sinclair stations begin to air it Thursday, might also include=20
portions of a sympathetic film about Kerry's Vietnam years, "Going Upriver:=
=20
The Long War of John Kerry."
[SOURCE: Los Angeles Times, AUTHOR:Elizabeth Jensen]
http://www.latimes.com/news/printedition/asection/la-na-sinclair19oct19,...
9075.story?coll=3Dla-news-a_section
(requires registration)

PRO-KERRY VETS GROUP DEMANDS EQUAL TIME
The Veterans Institute for Security and Democracy said Sinclair should not=
=20
force any of its 62 stations to air a documentary criticizing John Kerry=92s=
=20
Vietnam War protests, and it is demanding that any station that airs it=20
give equal time for a film lauding his military service in Vietnam. "Fair=20
use of the airwaves is essential to the democratic process,=94 wrote retired=
=20
Air Force Col. Richard Klass, president of the institute, =93and partisan=
use=20
by a broadcaster without presenting both sides or a contending view is=20
unfair, undemocratic and un-American.=94 Sinclair should ensure that any=20
station airing Stolen Honor should also broadcast a similar-length version=
=20
of Going up River in the same timeslot within two days. If Stolen Honor is=
=20
paid programming funded by a sponsor, then Going up River should have the=20
opportunity to pay a similar rate, as long as the price is within normal=20
commercial range. Airing of the programs should be followed by a =93balanced=
=94=20
panel discussion among Vietnam veterans, Klass insisted in a letter to=20
Sinclair CEO David Smith. Klass previously has criticized President Bush=92s=
=20
National Guard Service at press conferences sponsored by the Democratic=20
National Committee. As of deadline Monday, Sinclair had not responded to=20
the requests.
[SOURCE: Broadcasting&Cable, AUTHOR: Bill McConnell]
http://www.broadcastingcable.com/article/CA472807.html?display=3DBreakin...
ws&referral=3DSUPP
(free access for Benton's Headlines subscribers)

SINCLAIR BROADCASTING TAKES A BEATING
Wall Street continues to punish Sinclair for its decision to air "Stolen=20
Honor" on the company's 62 TV stations. Shares closed Monday at $6.49, down=
=20
55 cents since Friday -- and down 12% since Oct. 11, the first day of=20
trading after the Los Angeles Times disclosed Sinclair's plans. But that's=
=20
not Sinclair's only business problem -- nor its only experience with=20
controversy. 1) Since 2002 Sinclair has produced and distributed costly=20
news and mostly conservative-opinion segments, called News Central, about=20
national and international affairs for stations' local newscasts. While=20
Sinclair describes the package as a cheaper way to offer news, analysts=20
question why its small stations need to air news at all. 2) Sinclair has=20
blamed the war in Iraq for $2.2 million in lost ad revenue. The conflict=20
prompted advertisers to cancel or forced stations to pre-empt ads for news.=
=20
3) By opposing the transition to digital TV, critics say, Sinclair put its=
=20
interests ahead of the country's, and angered regulators, by trying to put=
=20
off the expense of converting to digital TV. 4) Sinclair has an ongoing=20
battle with Jesse Jackson's Rainbow/PUSH Coalition which has asked the FCC=
=20
to rescind some Sinclair station licenses and keep it from buying more. The=
=20
group says Sinclair used a minority-run company it controls to improperly=20
create duopolies -- ownership of two TV stations in a market in cities such=
=20
as Oklahoma City and Dayton.
[SOURCE: USAToday, AUTHOR: David Lieberman and James Cox]
http://www.usatoday.com/printedition/money/20041019/sinclair19.art.htm

ELECTION AD BUYS REVEAL A TALE OF 2 (TV) CITIES
While voters in about a dozen swing states are being ardently wooed with TV=
=20
ads, the rest of America is going mostly ignored. Only 27% of the U.S.=20
electorate lives in television markets airing presidential campaign spots,=
=20
according to the joint Nielsen Monitor-Plus and University of Wisconsin=20
Advertising Project. This article looks at the difference between the=20
Hearst-owned NBC affiliates. Both have the top-rated local news programs.=20
The one in Harrisburg (PA) can hardly accommodate all the requests for=20
national political ads. The one in Baltimore has had almost no political ad=
=20
buys at all. Hearst-Argyle imposes voluntary company-wide minimums for=20
political coverage airtime: at least one segment per each day on its major=
=20
newscast, and additional issue-oriented features in the final month leading=
=20
up to the election. That policy has presented a challenge for the Baltimore=
=20
station due to the sheer lack of local presidential campaign activity. To=20
fill the gap, the station has been offering factual analysis of claims made=
=20
by the candidates in debates and has woven contentious political ads into=20
its own news segments.
[SOURCE: Wall Street Journal, AUTHOR: Jeanne Cummings=20
jeanne.cummings( at )wsj.com ]
http://online.wsj.com/article/0,,SB109813187699448373,00.html?mod=3Dtoda...
s_marketplace
(requires subscription)

VIACOM BLOCKING INDEPENDENT POLITICAL ADS
Viacom has rejected ads on its cable networks from Compare Decide Vote. The=
=20
group produced ads comparing the presidential candidates' policy positions=
=20
on issues
important to young people. "The reason behind our policy distinction=20
between issue-ads and political campaign ads is simply that across all our=
=20
properties, we talk about these issues every day," explained a Viacom=20
spokesperson. FAIR writes that Viacom's position that its own take on the=20
election issues is sufficient is arrogant and presumptuous, particularly=20
given that Viacom has a near-monopoly on media outlets that appeal=20
primarily to young voters, like MTV and Comedy Central. This censorious=20
policy is one that should be reversed. The Action Alert ends with a request=
=20
to readers to leave a polite message about the company's advertising policy=
=20
for Viacom Chairman & CEO at 800-421-0245.
[SOURCE: FAIR Action Alert]
http://www.fair.org
For background information from Compare Decide Vote, see:
www.comparedecidevote.com/viacom/issue.htm

MEDIA

BILL COULD COST ECHOSTAR $100M
Last week, the House passed legislation (HR 4518) that would require=20
EchoStar to stop forcing subscribers in 38 markets to obtain a second dish=
=20
in order to receive all their local analog TV stations. Financial analysts=
=20
are estimating the bill, if it become law, could cost the company up to=20
$100 and may mean the end local broadcasts via satellite in 12 local=20
markets. For broadcasters, the one-dish rule was a key objective. The=20
National Association of Broadcasters complained that EchoStar relegated=20
religious and minority TV stations to the second dish, believing that=20
consumers would not take the trouble to hook up a second dish when ABC,=20
NBC, CBS and Fox affiliates were available via the main one. Congress is=20
facing a deadline to complete work on the bill. The distant network and=20
superstation licenses expire on Dec. 31, 2004. If Congress fails to extend=
=20
the copyright licenses, about 2 million satellite subscribers would lose=20
access to network programming and superstations.
[SOURCE: Multichannel News, AUTHOR: Ted Hearn]
http://www.multichannel.com/article/CA472409.html?display=3DPolicy
(requires subscription)

GROUP ASKS MAX FINE FOR EARNHARDT EXPLETIVE
The Parents Television Council has filed a complaint with the FCC over Dale=
=20
Earnhardt Jr.=92s use of a four-letter word after winning the Oct. 3 EA=20
Sports 500 in Alabama. =93NBC knows that NASCAR has a huge family audience,=
=94=20
says PTC President L. Brent Bozell. =93After the fact, NBC announced they=20
would be putting all future NASCAR race coverage on a five-second tape=20
delay. But frankly, NBC should have taken this action long before the=20
Earnhardt incident, especially given NBC=92s past problems with indecent=20
language during live broadcasts, including Bono=92s utterance of the f-word=
=20
during the 2003 Golden Globe Awards. Because NBC failed to impose a=20
five-second delay on the broadcast, PTC is asking the FCC to impose the=20
$27,500 maximum fine permitted for a single infraction rather than the=20
standard $7,000 penalty an indecency violation garners. PTC is also calling=
=20
for Congress to pass legislation that would increase the amount of maximum=
=20
fines for airing indecent content.
[SOURCE: Broadcasting&Cable, AUTHOR: Bill McConnell]
http://www.broadcastingcable.com/article/CA472801.html?display=3DBreakin...
ws&referral=3DSUPP
(free access for Benton's Headlines subscribers)
More coverage in --
TVWeek
http://www.tvweek.com/news.cms?newsId=3D6540

NCTA: CABLE PROTECTED FROM VIOLENCE REGS
Cable TV content might be violent, but there's nothing Congress or the FCC=
=20
can do about it, the National Cable & Telecommunications Association said=20
in a filing to the FCC. Regulation of TV violence, the NCTA said, would=20
involve content-based restrictions, which the courts have said must pass=20
the highest level of scrutiny. A federal law would encounter problems=20
because it would have difficulty defining violence in the first instance=20
and even more difficulty distinguishing harmful violence from benign=20
violence, the lobbying group added.
[SOURCE: Multichannel News, AUTHOR: Ted Hearn]
http://www.multichannel.com/article/CA472702.html?display=3DBreaking+News
(requires subscription)

QUICKLY

CALLING FOR A REGULATORY OVERHAUL, BIT BY BIT
[Commentary] There is an emerging consensus among policymakers that the=20
radical changes in technology and in the marketplace mean that it is time=20
for a substantial revision of our nation's communications laws. The new=20
competitive environment demands a new deregulatory communications policy to=
=20
replace the existing paradigm with its built-in regulatory bias. The policy=
=20
framework embodied in our existing communications laws is often called=20
"stovepipe" regulation. This is because there are distinct technology-based=
=20
and functionally driven regulations that apply in a disparate fashion,=20
depending on whether different services are classified as=20
telecommunications, information services, cable, satellite or broadcast.=20
Imagine each distinct service classification as a vertical stovepipe.=20
Everybody knows the old saw: "A bit is a bit is a bit." The reality is that=
=20
we now inhabit an increasingly digital world in which it is impossible to=20
distinguish bits carrying "voice" (telecommunications) from bits carrying=20
"data" (information services) or "video" (cable or broadcasting). The=20
policy framework embodied in our existing communications laws is often=20
called "stovepipe" regulation. In an environment in which technological=20
change enables companies regulated under one "stovepipe" to invade the turf=
=20
of companies regulated under another, it's time to tear down the existing=20
regulatory paradigm and replace it with a new model attuned to today's=20
marketplace realities. When Congress turns to revising our communications=20
laws it should incorporate a strong presumption that the economic=20
regulation that characterizes today's networks is unnecessary. Before=20
imposing regulation, regulators would be required to overcome the built-in=
=20
deregulatory presumption of competitiveness by clear and convincing=
evidence.
[SOURCE: C-Net|News.com, AUTHOR: Randolph J. May]
http://news.com.com/2010-1028-5415778.html

BELLS PLAY HARDBALL WITH NUMBERS
Cable giant Time Warner is accusing the Baby Bells of frustrating phone=20
competition by refusing to transfer existing phone numbers when customers=20
want to switch local phone carriers but retain high-speed data service.=20
Time Warner has told the FCC that the problem is especially pronounced in=20
situations where customers that already subscribe to a Bell's local phone=20
service and digital-subscriber-line Internet access decide to sign up for a=
=20
new local phone provider. Time Warner told the FCC that the Bell won't=20
transfer the phone number, as normally required under FCC=20
number-portability rules, unless the consumer cancels both the phone and=20
DSL service at the same time. Time Warner=92s overarching point was that=20
forcing a customer to drop DSL reduces interest in finding another local=20
phone-service provider, especially one that has to assign the customer a=20
new phone number. Phone number retention is considered especially important=
=20
for small businesses.
[SOURCE: Multichannel News, AUTHOR: Ted Hearn]
http://www.multichannel.com/article/CA472590.html?display=3DTop+Stories
(requires subscription)

THE TEXAS BROADBAND FOLLIES
[Commentary] Did Tom DeLay pull some strings to secure Department of=20
Agriculture loans to wire wealthy communities in his Texas district?=20
There's no evidence of that yet, but the alternative explanation for why=20
the communities got the funds isn't much better: Bush's plan for expanded=20
broadband access isn't working. According to a USDA official, the agency is=
=20
having a hard time finding people to take the $2.2 billion in funding=20
available this year. That's why a bunch of ritzy suburban developments are=
=20
getting money that was supposed to be earmarked for genuinely rural areas=20
-- they asked, and nobody else was standing ahead of them in line. If=20
that's true, it's time for some serious rethinking of federal broadband=20
policy. The program, passed as part of a farm support bill in 2002,=20
provides low-interest loans to private companies building networks in=20
communities with less than 20,000 people. It requires recipients to invest=
=20
their own money as well and to have real, potentially sustainable business=
=20
plans in place.
[SOURCE: C-Net|News.com, AUTHOR: John Borland]
http://news.com.com/The+Texas+broadband+follies/2010-1028_3-5416297.html

CISNEROS AFFILIATE SUES NEWS CORP., DIRECTV OVER DEAL
There's a growing debate on Wall Street about whether News Corp.'s strategy=
=20
for DirecTV is in the satellite firm's best interests. Since the media=20
conglomerate bought a 34% stake in DirecTV last December, acquiring=20
effective control, a new management team at DirecTV has aggressively ramped=
=20
up spending to try to boost DirecTV's subscriber count. That provides an=20
immediate benefit to News Corp., analysts say, which is planning to launch=
=20
new TV channels on DirecTV. But it has hurt DirecTV's bottom-line=20
performance, although analysts acknowledge it will benefit DirecTV=20
eventually. An affiliate of Venezuela's Cisneros Group filed suit against=20
News Corp. and its partly owned U.S. satellite arm, DirecTV Group, seeking=
=20
to block consolidation of Latin American satellite interests owned by News=
=20
Corp. and DirecTV. The Cisneros affiliate, which owns a 14% stake in=20
DirecTV's Latin American arm, alleged in the suit that a deal announced=20
last week grossly undervalued DirecTV's Latin American assets on terms that=
=20
benefited News Corp. and its partners in a competing Latin American=20
satellite service. Cisneros alleged in the suit that a J.P. Morgan=20
valuation used by DirecTV in discussions with its board put a $217 million=
=20
value on DirecTV Latin America, drastically below other valuations -- that=
=20
ranged from $1 billion to $1.9 billion -- on the same assets. According to=
=20
the suit, J.P. Morgan was "instructed to assume that DirecTV Latin=20
America's Mexico and Brazil operations had no value."
[SOURCE: Wall Street Journal, AUTHOR: Martin Peers martin.peers( at )wsj.com]
http://online.wsj.com/article/0,,SB109813705950348547,00.html?mod=3Dtoda...
s_marketplace
(requires subscription)

WEB RADIO GETS $1.7 BILLION BOOST
The American Society of Composers, Authors and Publishers announced=20
Monday that it has reached a $1.7 billion deal with the Radio Music License=
=20
Committee to let stations legally stream their on-air content over the=20
Internet. The deal covers 12,000 radio stations, over 7.5 million=20
copyrighted titles and runs through 2009.
[SOURCE: C-Net|News.com, AUTHOR: Matt Hines ]
http://news.com.com/Web+radio+gets+1.7+billion+boost/2100-1026_3-5414725...
l?tag=3Dnefd.top

HOLLYWOOD'S NEW DIRECTOR
An interview with Dan Glickman, the new head of the Motion Picture=20
Association of America. He's a former Member of Congress and served for six=
=20
years as the Secretary of Agriculture in the Clinton Administration.
[SOURCE: C-Net|News.com, AUTHOR: Ina Fried]
http://news.com.com/Hollywoods+new+director/2008-1026_3-5415149.html

TV: SAVING ONE LIFE AT A TIME
On Oct. 2, a contingent of police, civil air patrol and search-and-rescue=20
personnel responded to an international distress signal picked up by=20
satellite and routed to the Air Force Rescue Center at Langley Air Force=20
Base in Virginia. They expected to find a boat or small plane with a=20
malfunctioning transponder. Instead they found a college student watching=20
his new Toshiba flat-screen television. "They'd never seen a signal come=20
that strong from a home appliance," said the student quite surprised. I=20
think we all were." The situation grew serious when the student was told to=
=20
keep his TV off to avoid paying a $10,000 fine for "willingly broadcasting=
=20
a false distress signal." Luckily, Toshiba contacted van Rossmann and=20
offered to provide him with a free replacement set.
http://www.washingtonpost.com/wp-dyn/articles/A43211-2004Oct18.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.
--------------------------------------------------------------

Today, the Progress & Freedom Foundation is hosting a discussion at=20
Congress on "reinventing" the FCC. This weekend, CPSR meets in Washington,=
=20
DC. And, don't forget, there's lots of high-quality baseball available from=
=20
Boston and Houston over the next few days. For upcoming media policy=20
events, see http://www.benton.org/calendar.htm

MORE ON SINCLAIR
FCC Will Not Block Sinclair Show
Balance Is Broadcasters', Viewers' Call
Whew! Free Speech Free Another Day
A Tone-Deaf Broadcaster
CU Asks Sinclair Stations to Survey Residents on "Documentary"

BROADCASTING/TELEVISION
Real, Enlightening TV
FCC Backs Off HDTV Deadline
Free Air
Pre-Emption Pays Off for WRAZ
Product Placement in TV Shows Moves Out of Background
PBS Execs Seek to Lower Bar for 30-second Spots
Right-Tilting Shows Join Public Affairs Options
Va.-Based, U.S.-Financed Arabic Channel Finds Its Voice

NEWS FROM FCC MEETING
Broadband Deployment in Residential Neighborhoods
Broadband Over Power Lines
Spectrum for Advanced Wireless Services

TELECOM
Update on Funding Freeze and Possible Solutions
Feds Debut eRate Eligibility Database
Making Peace with the Phone Bill

QUICKLY
Fair-Use Fans Hail McCain
Indymedia Servers Mysteriously Reappear, But Questions Remain
ICANN Breaks Budget Impasse
Fewer Women in Computer Jobs These Days

MORE ON SINCLAIR

FCC WILL NOT BLOCK SINCLAIR SHOW
The FCC will look at the Sinclair/Stolen Honor situation, but, says=20
Chairman Michael Powell, "There is no rule that I'm aware of that would=20
allow the Commission =AD nor would it be prudent =AD to prevent the airing=
of a=20
program. And the only rules that I've heard in any way possibly implicated=
=20
are equal time, which merely means that the licensee would have to offer=20
the other side an opportunity to respond. And, at least according to press=
=20
reports, that opportunity has been provided." He added, "I would emphasize,=
=20
there is no FCC rule of prior restraint of a program being aired on=20
television. I think that would be an absolute disservice to the First=20
Amendment and I think it would be unconstitutional if we attempted to do=20
so. So don't look to us to block the airing of a program."
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
http://www.broadcastingcable.com/article/CA472208?display=3DBreaking+New...
ferral=3DSUPP
(free access for Benton's Headlines subscribers)

BALANCE IS BROADCASTERS', VIEWERS' CALL
The Radio-Television News Directors Association agrees with FCC Chairman=20
Michael Powell that government isn't in the business of prior restraint.=20
Responding to the Sinclair flap that has some legislators pushing for FCC=20
investigations, RTNDA President Barbara Cochran said, "We fully support the=
=20
free speech rights of broadcasters. Freedom of the press is a bedrock first=
=20
Amendment principle and one with which the government should not tamper.=20
Neither the Congress nor the FCC should be the national arbiter of=20
newsworthiness, nor should government attempt to judge the wisdom, accuracy=
=20
or balance of any station's news product." Cochran went on to refer to the=
=20
RTNDA's code of ethics which, among other things, says that "service in the=
=20
public interest creates an obligation to reflect the diversity in the=20
community and to guard against oversimplification of issues or events and=20
to provide a full range of information." Cochran says decisions about how=20
well broadcasters are meeting those obligations are the province of news=20
organizations and audiences. "Government should not, and cannot, interfere=
=20
in those decisions concerning broadcast content."
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
http://www.broadcastingcable.com/article/CA472269?display=3DBreaking+New...
ferral=3DSUPP
(free access for Benton's Headlines subscribers)

WHEW! FREE SPEECH FREE ANOTHER DAY
[Commentary] Rush Limbaugh says that media ownership concentration is a=20
good thing and the Sinclair/Stolen Honor situation proves it. FCC Chairman=
=20
Michael Powell announced that the Commission will not prevent the company=20
from airing the documentary on its 62 TV stations. "Whew! Free speech is=20
safe for another day," Limbaugh says. He goes on to relate, "Thirty years=20
ago, Sinclair Broadcasting Company consisted of one family owned Baltimore=
=20
channel on the UHF dial, made up of a high numbered stations whose signals=
=20
were so weak that viewers had to adjust a flimsy little antenna to get a=20
clear picture.... Now Sinclair owns more TV stations than anyone outside=20
the major networks." So? What? Big deal, "...and it is not at all shy about=
=20
using its clout to advance a conservative agenda." Limbaugh sees this as a=
=20
good thing and concludes that Sinclair would not have won the battle to air=
=20
the film if it was as small as it was 15 years ago.
[SOURCE: Rush Limbaugh Show]
http://www.rushlimbaugh.com/home/daily/site_101404/content/stack_a.guest...
l
To hear the best impression of MAP President Andrew J. Schwartzman ever=20
recorded by a conservative talk radio host, check out the URL below:
http://mfile.akamai.com/5020/wma/rushlimb.download.akamai.com/5020/clips...
10/101404_13_sinclair.asx=20

A TONE-DEAF BROADCASTER
If opponents of further media concentration had floated this as a=20
hypothetical scenario to advance their cause, they would have been=20
laughingly dismissed. But with breathtaking political tone-deafness,=20
Sinclair has come to their rescue. There is a strong case for revising the=
=20
decades-old media ownership rules, but thanks to Sinclair, the case will be=
=20
a tougher sell. It's no wonder investors rushed to sell shares in the=20
ineptly managed media company after The Times first reported Sinclair's=20
plans to compel most of its 62 stations to air "Stolen Honor." Viewers may=
=20
recall that Sinclair, six months ago, barred its ABC affiliates from airing=
=20
an episode of ABC's "Nightline" in which anchor Ted Koppel read the names=20
of soldiers killed in Iraq. Koppel's roll call, Sinclair said, was "a=20
political statement disguised as news content." Now, it claims just the=20
opposite for "Stolen Honor."
[SOURCE: Los Angeles Times, AUTHOR: LATimes Editorial Staff]
http://www.latimes.com/news/printedition/opinion/la-ed-fcc15oct15,1,4949...
story?coll=3Dla-news-comment
(requires registration)

CU ASKS SINCLAIR STATIONS TO SURVEY RESIDENTS ON "DOCUMENTARY"
Consumers Union has written the station managers of Sinclair-owned stations=
=20
to "request that you immediately commission an independent survey of=20
viewers in your area to ascertain what actions are appropriate on your=20
part, in response to Sinclair=92s decision, to preserve the existence of a=
=20
robust political debate at the community level that is the cornerstone of=20
our democracy. This survey should ask whether other points of view should=20
be given equal weight to ensure that citizens have all the facts they need=
=20
before they enter the voting booth on November 2nd." The letter goes on:=20
Local broadcasters have long claimed that they do and should reflect the=20
views and needs of citizens in their communities. For example, in its=20
=93National Report on Local Broadcasters=92 Community Service,=94 the=
National=20
Association of Broadcasters states: =93The bottom line is that local=20
broadcasters make substantial public service contributions to their=20
communities -- contributions that have great value and impact. And, as=20
always, a major reason for the success of the industry=92s public service=20
activities is that local broadcasters are making their decisions about=20
where to contribute -- and how -- based on the specific needs of the=20
communities they serve.=94 We believe this commitment engenders a=20
responsibility on your part to understand the information needs of citizens=
=20
in your community and then take action to ensure that citizens receive=20
overall fair, balanced coverage of the presidential campaign. This action=20
is necessary to ensure the robust debate critical to our democracy.
The letter was cc'ed to FCC Commissioners.
[SOURCE: Consumers Union]
http://www.consumersunion.org/pub/core_telecom_and_utilities/001441.html...
e

BROADCASTING/TELEVISION

REAL, ENLIGHTENING TV
[Comentary] The presidential debates have been the ultimate reality TV.=20
They freed a canned campaign from the spinmeisters and attack-ad=20
manipulators and put it in the nation's living rooms, where people could=20
make up their own minds. The tools of modern politics have been honed, to=
=20
a frightening extent, so that they can shape perceptions. But the debates=20
neutralized that manipulative power, at least for 270 minutes. No wonder=20
incumbent presidents don't like debates. They have everything to lose and=20
very little to gain. By agreeing to debate his rival, a president moves=20
from a unique position of power, radiating the glow of the presidency, to a=
=20
level field. He gives up his best weapon and allows his opponent to=20
overcome his greatest liability. And that's before they begin talking. If=20
Bush should lose in November, I wonder if an incumbent will ever again=20
submit to the same trial by television in three 90-minute slices of reality.
[SOURCE: Washington Post, AUTHOR: David Ignatius davidignatius( at )washpost.com=
]
http://www.washingtonpost.com/wp-dyn/articles/A34166-2004Oct14.html
(requires registration)

FCC BACKS OFF HDTV DEADLINE
Ending the digital TV transition by 2006 may be out of the question,=20
but the FCC seems to have adopted an unofficial target date of Jan. 1,=20
2009. Media critics say an extension would allow broadcasters to hog large=
=20
segments of a publicly owned broadcast spectrum that's worth billions to=20
the wireless phone industry and other commercial communications interests.=
=20
"The broadcasters are spectrum-squatters," said Jeff Chester, executive=20
director of the Center for Digital Democracy, a Washington-based public=20
interest group. "Spectrum is the new gold -- it's the oil wells of=
cyberspace."
[SOURCE: Knight Ridder, AUTHOR: Charles Homans]
http://www.kentucky.com/mld/kentucky/news/nation/9913922.htm

FREE AIR
[Commentary] Local TV stations have consistently been among the most=20
lucrative businesses in the country, but they have never been asked to pay=
=20
for their use of the public airwaves. In a sense, broadcasters are the=20
modern equivalent of the railroads. In the nineteenth century, the=20
railroads were given tens of millions of acres of land (adding up,=20
eventually, to roughly 10% of the country); now broadcasters have been=20
given billions of dollars=92 worth of electromagnetic real estate. The=20
government has subsidized TV stations because it wanted the media to serve=
=20
the public interest. Broadcasters get their licenses free, and, in=20
exchange, they=92re supposed to keep the citizenry informed. Commendable as=
=20
this mandate may seem, it has very little to do with the business of=20
broadcast television. Today, most Americans -- 90% or so -- have cable or=20
satellite TV. The airwaves are used less and less. Nor is there any=20
evidence that the public interest is better served by broadcasters than by=
=20
cable channels. That the major networks showed just an hour of coverage per=
=20
night of the national political conventions suggests that it is not. For=20
some reason we seem to believe that free commercial television is an=20
inalienable right. We may not be willing to pay for all Americans to have=20
health insurance, but we=92re content to pay for them to watch =93Scrubs.=94=
By=20
endowing local broadcasters with free channels, the government effectively=
=20
made them little spectrum monopolists, and the one thing we know about=20
monopolies is that they do not disappear of their own volition. The=20
broadcasters, thanks in large part to their monopolies, have enormous=20
lobbying resources, and their control of the airwaves has made local=20
television -- and, in particular, local television news -- a powerful=20
weapon to wield against politicians who cross them. Politics drives the=20
business, and the business shapes the politics. As for the public interest=
=20
-- does =93Desperate Housewives=94 count?
[SOURCE: The New Yorker, AUTHOR: James Surowiecki]
http://www.newyorker.com/talk/content/?041018ta_talk_surowiecki

PRE-EMPTION PAYS OFF FOR WRAZ
Durham, North Carolina's WRAZ-TV, owned by Capitol Broadcasting, decided=20
not to air "Married By America" and, so, will not face the $7,000 fine=20
other Fox affiliates now do. WRAZ-TV divorced itself from the show starting=
=20
with its third episode after the broadcaster concluded the series "demeaned=
=20
and exploited the institution of marriage." The station also preempted "Who=
=20
Wants to Marry a Multimillionaire" in February 2003 for the same reason.
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
http://www.broadcastingcable.com/article/CA472205?display=3DBreaking+New...
ferral=3DSUPP
(free access for Benton's Headlines subscribers)

PRODUCT PLACEMENT IN TV SHOWS MOVES OUT OF BACKGROUND
Marketers are using scripted content to get their brands noticed and making=
=20
it harder to tell what's a show and what's an ad. "Advertisers are taking=20
the next step to =85 go beyond product placement," says Andy Donchin, media=
=20
buyer at Carat. "They are trying to be there at the inception of a show to=
=20
see if there is any way to integrate a product or service organically into=
=20
a program." The new thinking has brought shifts in ad dollars. For example,=
=20
ever since it found success with placement in Fox's American Idol and=20
24,Ford has moved spending to such appearances. It now spends less than 80%=
=20
of its ad budget on traditional TV and print ads. "We're seeing some blips=
=20
in data that there is more impact that comes out of these deals than from=20
30-second ads,=94 says Rich Stoddart, marketing communications manager at=20
Ford. The risk is that viewers eventually get turned off by the commercial=
=20
clutter in shows. =93It's a very fine line between doing something that=
works=20
and something that could turn off viewers,=94 warns ad buyer Donchin.
[SOURCE: USAToday, AUTHOR: Theresa Howard]
http://www.usatoday.com/printedition/money/20041015/placement.art.htm

PBS EXECS SEEK TO LOWER BAR FOR 30-SECOND SPOTS
To sweeten the appeal of corporate underwriting, PBS management has=20
recommended letting more funders into its Premier Sponsorship club, which=20
gives them 30-second credits instead of 15-second spots. PBS hopes the club=
=20
will add some new faces by admitting underwriters whose spending exceeds=20
$1.5 million. The present threshold is $2.5 million. PBS execs think=20
lowering the threshold could help generate another $12-15 million in=
revenue.
[SOURCE: Current, AUTHOR: Jeremy Egner]
http://www.current.org/cm/cm0418thirty.shtml

RIGHT-TILTING SHOWS JOIN PUBLIC AFFAIRS OPTIONS
PBS has added Journal Editorial Report and Tucker Carlson: Unfiltered=20
hoping to broaden the range of viewpoints found on member stations. Though=
=20
political partisans may get excited over changes in the public affairs=20
lineup, for many viewers the new shows fade into a talking-heads marathon=20
that runs from dinner until past bedtime on some stations. "All of the=20
official word from PBS is that we=92re doing this to add more points of=20
view,=94 said Wisconsin Public TV=92s Dave Iverson, executive director of=
Best=20
Practices in Journalism. =93I wish our standard was, =91Let=92s try to do=
the=20
best job we can and find the best journalists=92=94 instead of choosing=
on-air=20
talent for their ideological affiliations. Partisan advocacy is driving too=
=20
much media coverage, including Fox News, Michael Moore=92s punditry and the=
=20
CBS News reports that gave credence to fake documents on President Bush=92s=
=20
National Guard service, Iverson said. =93I think there=92s an amazing=20
opportunity for public broadcasting to say, =91Look at us -- we=92re the=
ones=20
to give you the straight skinny=92 -- to be the journalistic equivalent of=
=20
John McCain.=94
[SOURCE: Current, AUTHOR: Karen Everhart]
http://www.current.org/news/news0418fridays.shtml

VA-BASED, US-FINANCED ARABIC CHANNEL FINDS ITS VOICE
Alhurra TV, a network with 150 reporters based in Springfield (VA), is the=
=20
U.S. government's largest and most expensive effort to sway foreign opinion=
=20
over the airwaves since the creation of Voice of America in 1942. The=20
24-hour channel, which started operating in February, airs two daily=20
hour-long newscasts, and sports, cooking, fashion, technology and=20
entertainment programs, including a version of "Inside the Actors Studio"=20
dubbed in Arabic. It also carries political talk shows and magazine-type=20
news programs, including one about the U.S. presidential election. Congress=
=20
last year approved $62 million to pay for Alhurra's first year. In November=
=20
2003, Congress committed $40 million more to launch a sister station in=20
April aimed solely at Iraq. The operation is overseen by the Broadcasting=20
Board of Governors, an independent federal agency that is also in charge of=
=20
Voice of America. The U.S. government launched Alhurra after deciding that=
=20
existing Arab news channels displayed anti-American bias. The aim is to=20
promote a more positive U.S. image to Arabs.
[SOURCE: Washington Post, AUTHOR: Ellen McCarthy]
http://www.washingtonpost.com/wp-dyn/articles/A33564-2004Oct14.html
(requires registration)

NEWS FROM FCC MEETING
Two items were late scratches from the FCC's open meeting agenda: 1)=20
payphone compensation rules and 2) the definition of incumbent local=20
exchange carrier.
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-253112A1.doc

BROADBAND DEPLOYMENT IN RESIDENTIAL NEIGHBORHOODS
The FCC relieved incumbents telecos from unbundling requirements for=20
fiber-to-the-curb (FTTC) loops, where fiber is extended within 500 feet of=
=20
a customer's premises. The FCC found that FTTC networks can deliver many=20
of the same benefits as FTTC loops. FTTC networks offer enhanced=20
capability for providing advanced services, including the ability to offer=
=20
voice, multi-channel video, and high-speed data services. The new rules=20
free companies to choose between fiber-to-the-home (FTTH) or FTTC networks=
=20
based on marketplace characteristics, rather than disparate regulatory=20
treatment. The FCC also clarified that incumbent telecos are not obligated=
=20
to build time division multiplexing (TDM) capability into new packet-based=
=20
networks or into existing packet-based networks that never had TDM=
capability.
[SOURCE: FCC]
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-253127A1.doc
STATEMENTS FROM COMMISSIONERS --
* Powell (Majority):
Deep fiber networks offer consumers a "triple play" of voice, video and=20
data services and an alternative to cable. By limiting the unbundling=20
obligations of incumbents when they roll out deep fiber networks to=20
residential consumers, we restore the marketplace incentives of carriers to=
=20
invest in new networks. There is, however, an important limiting principle=
=20
in this item: our rules demand that carriers deploy fiber deep into=20
neighborhoods - within 500 feet of a customers' home. Our policy is=20
designed to remove regulatory barriers to these risky investments; but we=20
will remain watchful of requests that would back the Commission up from the=
=20
broadband future. Consumers deserve information at the speed of light and=
=20
by taking action today, we move one step closer to that result.
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-253127A2.doc
Abernathy:=
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-253127A3.doc
Martin: http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-253127A5.doc
* Copps (Dissenting):
Though today's Order speaks in glowing terms about broadband relief, the=20
reality is far less radiant. I don't believe competitive=20
telecommunications have been faring very well under our watch and this=20
particular proceeding strikes me as yet another in a series of=20
prescriptions this Commission is willing to write to end competitive access=
=20
to last mile facilities. It seems every month brings a new onslaught. Here=
=20
is why I think this approach is dangerous. The loop represents the prized=
=20
last mile of communications. Putting it beyond the reach of competitors=20
can only entrench incumbents who already hold sway. Monopoly control of=20
the last mile created all kinds of problems for basic telephone service in=
=20
the last century, and now we seem bent on replicating that sad story for=20
advanced services in the digital age. Unfortunately, the digital age is=20
going to take a lot longer to get here because of the blows we are=20
inflicting on competition. If we aren't going to listen to consumers, one=
=20
would think this Commission would at least listen to the investors who=20
wrote us again last week that our broadband policies are undermining=20
competition, undermining facilities-based carriers who need last-mile=20
access to service small business customers, and undermining the confidence=
=20
of investors who want to put money into this kind of competition-in fact=20
who have already done so! It doesn't take a compass to see what direction=20
this is heading. With fewer and fewer loops available to competitors, more=
=20
and more control will be wrestled away from consumers and placed with the=20
entrenched owner of the last mile facility. By shutting off the last mile=
=20
to competitors, the Commission is not ushering in a new era of=20
broadband. It is returning to the failed and non-competitive policies of=20
the past. Residential consumers, small businesses, edge providers of VoIP=
=20
and others who rely on competitive broadband will be stuck with the=20
consequences, and the consequences will be with us for a long time and=20
will, I predict, kick us further down that broadband penetration ladder=20
where your country and mine now ranks Number 11.
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-253127A4.doc
Adelstein (Dissenting in part):=20
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-253127A6.doc
REACTIONS
* Association for Local Telecommunications Services
=93The Bell companies -- with the support of the FCC -- are quickly=20
recapturing their monopoly over local loops. Thanks to the FCC=92s action=20
today, the Bells can now deny competitive carriers access to local loop=20
facilities that contain any fiber =AD including part fiber/part copper loops=
=20
that were deployed decades ago. In a complete reversal of broadband=20
policies announced just last year, the FCC has now immunized the Bell=20
companies from competition for residential and small business customers=20
over existing loops =AD even though the FCC concluded that such=20
remonopolization of loop plant would disincent further investment in new=20
fiber deployment. Today=92s action undermines facilities-based competition=
=20
and threatens the availability of competitive services to businesses. Even=
=20
access to core DS1 network elements -- supported by a unanimous FCC in the=
=20
last competition proceeding -- is being curtailed in response to Bell=20
company requests. The FCC needs to stop saying one thing and doing another.=
=20
The nation=92s small businesses need the Administration and the FCC to stand=
=20
firmly in support of loop unbundling.=94
* Consumers Union and Consumer Federation of America
"The FCC today took our country one giant step closer toward solidifying a=
=20
two-company domination -- the local cable and telephone providers -- over=20
the consumer Internet market,=94 said Gene Kimmelman, Senior Policy Director=
=20
for Consumers Union. =93As both industries tighten their hold on high-speed=
=20
Internet (broadband) access, consumers will see their choices diminish and=
=20
their bills skyrocket.=94 =93This stranglehold will stifle innovation as=
=20
these duopolies discriminate against unaffiliated applications and services=
=20
that in the past have driven the growth of the Internet and the boom in=20
information technology,=94 Mark Cooper, Director of Research at the Consumer=
=20
Federation of America, said. =93As a result, our country will fall even=20
farther behind Asia and Europe in broadband penetration.=94
http://www.consumersunion.org/pub/core_telecom_and_utilities/001443.html...
e
SEE ALSO --
Reuters:=20
http://www.reuters.com/newsArticle.jhtml;jsessionid=3DHIK3ZIV30ABA0CRBAE...
Y?type=3DtechnologyNews&storyID=3D6506341

BROADBAND OVER POWER LINES
As part of its goal to promote access to broadband services for all=20
Americans and to encourage new facilities based broadband platforms, the=20
FCC adopted changes to Part 15 of its rules to encourage the development of=
=20
Access Broadband over Power Line (Access BPL) systems while safeguarding=20
existing licensed services against harmful interference. Access BPL is a=20
new technology that provides access to high speed broadband services using=
=20
the largely untapped communications capabilities of the nation's power=20
grid. By facilitating access to BPL, the Commission takes an important=20
step toward increasing the availability of broadband to wider areas of the=
=20
country because power lines reach virtually every home and community. In=20
areas where consumers already have broadband access, BPL can enhance=20
competition by providing another broadband alternative. Access BPL will=20
also facilitate the ability of electric utilities to dynamically manage the=
=20
power grid itself, increasing network reliability by remote diagnosis of=20
electrical system failures. The FCC order: 1) Sets forth rules imposing=20
new technical requirements on BPL devices, such as the capability to avoid=
=20
using any specific frequency and to remotely adjust or shut down any unit;=
=20
2) Establishes "excluded frequency bands" within which BPL must avoid=20
operating entirely to protect aeronautical and aircraft receivers=20
communications; and establishes "exclusion zones" in locations close to=20
sensitive operations, such as coast guard or radio astronomy stations,=20
within which BPL must avoid operating on certain frequencies; 3)=20
Establishes consultation requirements with public safety agencies, federal=
=20
government sensitive stations, and aeronautical stations; 4) Establishes a=
=20
publicly available Access BPL notification database to facilitate an=20
organized approach to identification and resolution of harmful=20
interference; 5) Changes the equipment authorization for Access BPL systems=
=20
from verification to certification; and 6) Improves measurement procedures=
=20
for all equipment that use RF energy to communicate over power lines.
[SOURCE: FCC]
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-253125A1.doc
Statements from Commissioners --
* Powell and FERC Chairman Wood:
The FCC and Federal Energy Regulatory Commission issued a joint statement=20
urging 1) utilities to pursue new and developing technologies, such as BPL,=
=20
that will foster greater customer options in broadband, provide more=20
efficient management of the power supply system, and ensure increased=20
operational reliability and 2) utilities to appropriately allocate revenues=
=20
and costs related to new technologies, such as Access BPL, between=20
regulated and unregulated functions.
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-253128A1.doc
* Copps (Dissenting in part):
I'm also disappointed that today's item dodges some of the hardest BPL=20
questions. If we want investment in BPL, we need certainty and=20
predictability. But issues such as universal service, disabilities access,=
=20
E911, pole attachments, competition protections, and, critically, how to=20
handle the potential for cross-subsidization between regulated power=20
businesses and unregulated communications businesses remain up in the=20
air. Is it right to allow electricity rate payers to pay higher bills=20
every month to subsidize an electric company's foray into broadband? I'm=20
glad our FERC colleagues are here today, because this last part needs to be=
=20
a fully collaborative effort. Some will argue that we don't know enough=20
about what this technology will look like yet, so we shouldn't impose any=20
obligations lest we regulate an infant technology out of existence. Or=20
that we shouldn't saddle a new technology with long-standing policy=20
objectives. I disagree. Just because these policy goals are long standing=
=20
doesn't mean that they are out of date. Public safety, rural service,=20
competition and disabilities access never go out of date. I don't yet know=
=20
how these issues will play out for powerline broadband or what rules the=20
Commission should adopt. But we should have used this proceeding to start=
=20
giving investors and consumers some certainty on the matter. Having=20
understandable rules of the road is what investors, as well as consumers,=20
are looking for
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-253125A3.doc
ADDITIONAL COVERAGE --
NYTimes: http://www.nytimes.com/2004/10/15/technology/15power.html
WP: http://www.washingtonpost.com/wp-dyn/articles/A34100-2004Oct14.html

SPECTRUM FOR ADVANCED SERVICES
The FCC allocated spectrum to allow Federal operations to be cleared from=20
spectrum that has been allocated for advanced wireless services (AWS),=20
including third generation wireless (3G) systems. This action is an=20
important step towards the future auction of 90 MHz of spectrum for AWS.=20
The Commission previously allocated the 1710-1755 MHz (1.7 GHz) and 2110=20
2155 MHz (2.1 GHz) bands for AWS. The 1.7 GHz band was transferred from=20
the Federal Government for private sector use, but Federal operations at=20
certain locations were to remain in this spectrum indefinitely. The U.S.=20
Department of Commerce's National Telecommunications and Information=20
Administration ("NTIA"), working with the Department of Defense and other=20
Federal agencies, developed a set of proposals to clear this spectrum so=20
that it could be made available for AWS throughout the United States.
[SOURCE: FCC]
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-253130A1.doc
Reaction
http://www.ctia.org/news_media/press/body.cfm?record_id=3D1447

TELECOM

UPDATE ON FUNDING FREEZE AND POSSIBLE SOLUTIONS
What are the possible outcomes of the current E-Rate funding freeze? E-Rate=
=20
Central offer three possibilities: 1) Under political pressure, the=20
decision to define Funding Commitment Decision Letters (FCDLs) as legal=20
obligations requiring cash on-hand might be reversed. Although viewed as a=
=20
low probability, this would permit the immediate resumption of funding.=20
Since the E-Rate administrator has continued its review of applications=20
since the freeze began, a large initial wave of commitments (more than $300=
=20
million) would be expected. 2) A related possibility being given serious=20
consideration is to weaken the language of the current FCDLs to make it=20
clear that the funding being awarded is dependent upon the availability of=
=20
cash at the time invoices are filed. If the administrator can issue weaker=
=20
FCDLs that are not legally considered obligations, then the funding waves=20
could again be resumed much as before. The major concern with this approach=
=20
is whether applicants and/or service providers will be willing to accept=20
these authorizations as the basis for the initiation of new projects and/or=
=20
the extension of discount-dependent credits. 3) If no changes are made,=20
then the resumption of funding will depend on the availability of=20
uncommitted cash. The administrator has been actively working to free up=20
earlier commitments by encouraging applicants to file Form 500s to cancel=20
existing funding awards that will not be used. Additional uncommitted cash=
=20
is expected to be generated after October 29th, the invoice deadline for=20
recurring services, to the extent that applicants do not actually use all=20
the funds awarded for FY 2003. The primary source of new cash, however, are=
=20
contributions that flow into the Universal Service Fund on a quarterly=20
basis - a flow that has unfortunately been reduced by FCC actions as=20
recently as last month. In this case, the funding schedule will be tied=20
primarily to new cash inflows and may require new rules and procedures to=20
establish funding priorities.
[SOURCE: E-Rate Central]
http://www.e-ratecentral.com/archive/News/News2004/weekly_news_40.asp#b1

FEDS DEBUT ERATE ELIGIBILITY DATABASE
Removing uncertainty about what's allowed and what's not, eRate applicants=
=20
now can search for eligible products in a new online database that was=20
created by the FCC. The database is part of a pilot project intended to=20
benefit all eRate stakeholders by making the program simpler and possibly=20
limiting waste, fraud, and abuse in the program.
[SOURCE: eSchool News, AUTHOR: Cara Branigan]
http://www.eschoolnews.com/news/showStoryts.cfm?ArticleID=3D5322

MAKING PEACE WITH THE PHONE BILL
In his recent book, The Future of Work, Thomas Malone argues that=20
continuing reductions in the unit cost of communication are changing the=20
face of business, leading to decentralization, innovative use of markets,=20
and eventually, workplace democracy. But are we enjoying those reductions=20
at home? In real dollars, US households probably pay twice as much for=20
communications as we did 20 years ago. Speaking with Brown, Malone is quick=
=20
to point out that he's talking about the unit charges of communications=20
dropping, not the total cost. =93When the unit cost of something goes down,=
=20
people usually buy more of it,=94 he said, going on to explain that this=20
"elasticity of demand" is unusually high in today=92s telecom market. It=92s=
so=20
high, in fact that =93when the unit cost goes down, people buy so much more=
=20
of it that their total cost actually increases. Today=92s freelancers have=
=20
cheap and easy access to many orders of magnitude more information than=20
they did in the 1980s,=94 he said. =93They have flat rate long distance and=
can=20
take and receive calls wherever they are. They can send e-mail to as many=20
people as they want for free and find information in seconds that, if it=20
could be found at all, would have taken numerous phone calls and letters.=20
In fact, in many cases, freelancers have access to better information than=
=20
was available to the most senior managers of GM, IBM, and the U.S.=20
government back in the =9280s.=94
[SOURCE: Technology Review, AUTHOR: Eric S. Brown]
http://www.technologyreview.com/articles/04/10/wo_brown101304.asp

QUICKLY

FAIR-USE FANS HAIL MCCAIN
Consumers Union, Public Knowledge and other fair-use fans have written a=20
thank you letter to Sen. John McCain (R-AZ) for his efforts to block the=20
quick passage of copyright-related legislation that the groups argued=20
favored Hollywood. "Through your objection to the further consideration or=
=20
passage of these bills by unanimous consent," they wrote, "you have again=20
shown that the rights and expectations of consumers and the public are=20
paramount in the balance between copyright and innovation."
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
http://www.broadcastingcable.com/article/CA472257?display=3DBreaking+New...
ferral=3DSUPP
(free access for Benton's Headlines subscribers)
See full text of letter at
http://www.publicknowledge.org/content/letters/thankmccain

INDYMEDIA SERVERS MYSTERIOUSLY REAPPEAR, BUT QUESTIONS REMAIN
Rackspace Managed Hosting, the San Antonio-based company that manages two=20
Indymedia servers seized by the US government last Thursday, said yesterday=
=20
that the servers have been returned and are now available to go back=20
online. Immediate access to the servers, which host Indymedia's Internet=20
radio station and more than 20 Indymedia websites, will be delayed so that=
=20
the Electronic Frontier Foundation (EFF) can ensure that the servers are=20
secure and take steps to preserve evidence for future legal action. Now=20
that the servers have been returned, the question still remains: who took=20
them, and under what authority? Citing a gag order, Rackspace would not=20
comment on what had happened both in the original seizure of the servers or=
=20
their return. All that is known at this point is that the subpoena that=20
resulted in the seizure was issued at the request of a foreign government,=
=20
most likely with the assistance of the United States Attorney's Office in=20
San Antonio. Although initial reports suggested that the FBI had taken the=
=20
servers, the FBI has now denied any involvement. The seizure, which=20
silenced numerous political news websites for several days, is clearly a=20
violation of the First Amendment. "Secret orders silencing US media should=
=20
be beyond the realm of possibility in a country that believes in freedom of=
=20
speech," said EFF staff attorney Kurt Opsahl. "EFF was founded with the=20
Steve Jackson Games case fourteen years ago, and at that time we=20
established that seizing entire servers because of a claim about some=20
pieces of information on them is blatantly illegal and improper. It appears=
=20
the government forgot this basic rule, and we will need to remind them."
[SOURCE: Electronic Frontier Foundation Press Release]
http://www.eff.org/news/archives/2004_10.php#002006
See also
http://www.indymedia.org/en/index.shtml

ICANN BREAKS BUDGET IMPASSE
The Internet Corporation for Assigned Names and Numbers (ICANN) hammered=20
out an agreement for its 2004-05 budget after resolving a key disagreement=
=20
that had delayed the measure. The sticking point was a tripartite fee=20
structure that smaller registrars organized to fight, claiming it unfairly=
=20
disadvantaged them. ICANN is fending off a number of legal actions, but has=
=20
also budgeted to: 1) Start monitoring its members for anticompetitive=20
practices, such as denying legitimate domain name transfer requests; 2)=20
Speed and in some cases automate response to requests for IP addresses made=
=20
by regional Internet registries to ICANN's Internet Assigned Numbers=20
Authority (IANA); and 3) Allow the registration of non-English top level=20
domains, for example Dutch or Chinese versions of ".com."
[SOURCE: C-Net|News.com, AUTHOR: Paul Festa]
http://news.com.com/ICANN+breaks+budget+impasse/2100-1028_3-5408626.html...
=3Dnefd.hed

FEWER WOMEN IN COMPUTER JOBS THESE DAYS
A study released Wednesday by the Commission on Professionals in Science=20
and Technology found a decline in the share of computer science jobs held=20
by women in a recent 20-year period. In 1983, women held 30.5% of the jobs=
=20
in the category of computer systems analysts and scientists, programmers=20
and postsecondary computer science teachers, according to the commission.=20
That figure declined to 27.2% in 2002.
For more info, see CPST's Press release=20
http://www.cpst.org/STEM/STEM2_Press.doc and report=20
http://www.cpst.org/STEM_Report.cfm
[SOURCE: C-Net|News.com, AUTHOR: Ed Frauenheim]
http://news.com.com/Fewer+women+in+computer+jobs+these+days/2100-1022_3-...
551.html?tag=3Dnefd.hed
--------------------------------------------------------------
...and we're outta here. Have a great weekend!
--------------------------------------------------------------
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.
--------------------------------------------------------------

Check local listings for tonight's debate. For upcoming media policy
events, see http://www.benton.org/calendar.htm

MEDIA & ELECTIONS
Boycott Call Grows Over Plan to Air Anti-Kerry Film
Sinclair and Double Standards
Sinclair's Partisan Ploy Cries Out for Equal Time
Sinclair Plays Fast and Loose with the News
Sinclair's Hatchet Job on Kerry
Viacom Issue-Ad Rejection Draws Protest
Kerry Campaign Goes Positive

INDECENCY
Smut, Sats, DTV Unresolved
FOX Violation of Indecency Rule for "Married By America"
Howard Stern and the Future of Media Censorship

QUICKLY
Alcohol Ads Up; Youth Drinking Flat
LPTV Facing 'Spectrum Fights' During DTV Transition
The Role of Radio Sawa In Mideast Questioned
NCTA Opposes Tougher Captioning Enforcement
Supreme Court Declines to Review FCC's Phone Competition Rules
Temporary Suspension Of Schools And Libraries/Rural Health Care Funding
Commitments
A Laptop in Every Locker
Broadband Policy -- Who has a Better Plan?
EFF Challenges Secret Government Order to Shut Down Media Websites
FTC Files First Spyware Case Following CDT Complaint

MEDIA & ELECTIONS

BOYCOTT CALL GROWS OVER PLAN TO AIR ANTI-KERRY FILM
The Federal Elections Commission and the Federal Communications Commission
are unlikely to rule on the legality of airing "Stolen Honor" before its
scheduled showing next week, a call for a boycott of Sinclair advertisers
may already be having some effect. Democrats are urging supporters to call
Sinclair stations and their advertisers to complain about Sinclair's plans
for a preelection screening. A handful of local companies, in cities
including Minneapolis and Columbus, Ohio, have pulled their ads from the
local Sinclair stations. One, Baltimore-based Sylvan Learning Center,
released a statement saying the company was "a nonpartisan organization."
It added, "Our advertising strategy is designed to reach our customers and
is in no way supportive of any political party or agenda."
[SOURCE: Los Angeles Times, AUTHOR: Elizabeth Jensen]
http://www.latimes.com/news/printedition/asection/la-na-sinclair13oct13,...
(requires registration)

SINCLAIR AND DOUBLE STANDARDS
[Editorial] The WSJ takes issue with the reaction to Sinclair's move to air
"Stolen Honor," accusing Democrats of censorship and comparing Sinclair's
editorial decision with that of the Philadelphia Inquirer, the St. Louis
Post-Dispatch, the Oregonian, the Portland (Maine) Press Herald, the
Atlanta-Journal Constitution, the Seattle Post-Intelligencer, the
Philadelphia Daily News, the Seattle Times, the Arizona Daily Star, the
Detroit Free Press, the New London Day, and -- living up to its name -- the
Lone Star Iconoclast of President Bush's hometown of Crawford, Texas -- all
of which have endorsed Sen Kerry. "We haven't done the math," the editorial
reads, "but surely the combined impact of these "in-kind contributions"
reaches millions of potential voters who aren't likely to read another
editorial endorsing Mr. Bush. By contrast, Sinclair's 42-minute documentary
is airing on the company's 62 stations, which reach 24% of U.S.
households." The editorial ends by comparing Sinclair's decision to
*broadcast* "Stolen Honor" while Michael Moore works to make "Fahrenheit
9/11" available on pay-per-view the night before the election. "We look
forward to reading the Senators' follow-up letter to the FCC on this abuse
of the airwaves," the editorial ends. [Although Headlines readers know,
cable operators aren't considered public trustees of the airwaves -- using
cable and all -- as broadcasters are.]
[SOURCE: Wall Street Journal, AUTHOR: Wall Street Journal Editorial Staff]
http://online.wsj.com/article/0,,SB109763076928843802,00.html?mod=todays...
(requires subscription)

SINCLAIR'S PARTISAN PLOY CRIES OUT FOR EQUAL TIME
[Commentary] Sinclair's obvious attempt to affect the election by
broadcasting the film is exactly the sort of use of public
airwaves to promote station owners' private political agendas that federal
regulations have always been designed to prevent. "American thought and
American politics will be largely at the mercy of those who operate these
stations," Rep. Luther Johnson warned at the time of the passage of the
Radio Act of 1927. With growing numbers of stations controlled by chains
like Sinclair -- which controls more television licenses than any other
operator-- these
concerns are more relevant than ever. If Sinclair wants to give more
exposure to "Stolen Honor," it can do so fairly by providing equal time for
an examination of the same subject from an opposing perspective. The
documentary "Going Upriver: The Long War of John Kerry," a positive account
of Kerry's service in Vietnam and his
anti-war activism upon his return, would seem to be an ideal candidate. The
Chicago Tribune (10/1/04) called it "almost essential viewing... that
anyone who intends to vote this November should make every effort to see."
FAIR is asking readers to contact Sinclair and ask it to air "Going
Upriver" as well as "Stolen Honor.
Sinclair Contact Info -- Phone: 410-568-1500 E-mail: comments( at )sbgi.net
[SOURCE: FAIR]
http://www.fair.org/

SINCLAIR PLAYS FAST AND LOOSE WITH THE NEWS
[Commentary] The anti-Kerry documentary Sinclair plans to run on its
stations is a publicity stunt masquerading as journalism. This is
"political service" journalism at its worst. In the film, Kerry is
described to viewers as "a willing accomplice" for "enemy propagandists."
Billing this film as news, however, carries certain key advantages for
Sinclair. As a news program, the film, which will be run commercial-free,
may be exempt from federal regulations that require equal time for Senator
Kerry's campaign to respond. Instead, the Kerry camp is calling on
supporters to boycott Sinclair advertisers and demonstrate against its
stations, while a group of Democratic senators -- including Kerry's mentor,
Senator Edward Kennedy, are asking the FCC to investigate Sinclair's
broadcast plans, charging that the documentary is not news, but really a
political advertisement favoring Kerry's opponent, President Bush.
[SOURCE: MediaChannel.org]
http://www.mediachannel.org/views/dissector/affalert277.shtml

SINCLAIR'S HATCHET JOB ON KERRY
[Commentary] Think who owns and makes the media doesn't matter? Consider
Sinclair's order to its owned affiliates to air an alleged "documentary"
that is nothing more than a hatchet job on John Kerry. At CCVM, we're a
nonpartisan nonprofit. But what this episode clearly points up is that
television needs more voices owning stations and more voices producing
programming. It doesn't matter whether they are liberal or conservative, as
long as there are more, so that a Sinclair isn't able to monopolize the
public airwaves in the communities it is supposed to serve in the public
interest.
[SOURCE: Center for Creative Voices in Media]
(www.creativevoices.us)

VIACOM ISSUE-AD REJECTION DRAWS PROTEST
Viacom is making news in this election again -- this time refusing to run
ads aimed at getting young voters to participate in the democratic process.
The Let Us Decide Coalition says that it had a $115,000 buy booked on
Comedy Central for the first ad in a planned $750,000 combined local and
national cable and broadcast campaign, only to have it rejected by Viacom
Oct. 1, citing its standing policy against issue advertising. The ads ask
young voters to compare policies of the two candidates--like minimum
wage--and then decide who to vote for, with the current administration
clearly suffering in the comparison. The Coalition contends that Viacom has
a near monopoly hold on young viewers through its cable networks Comedy
Central, VH1, BET and various MTVs. The Coalition also says it will be more
expensive to reproduce that $115,000 buy going market-to-market, as they
have had to do with the campaign, with the first of three ads launching
Monday night. The group is responding by urging a boycott of Viacom
advertisers and starting an online and phone campaign targeted at Viacom
executives.
Earlier this year, Viacom refused an anti-Bush ad from MoveOn.org during
the Super Bowl.
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
http://www.broadcastingcable.com/article/CA471155.html?display=Breaking+...
(free access for Benton's Headlines subscribers)
Additional coverage --
*Washington Post:
http://www.washingtonpost.com/wp-dyn/articles/A28103-2004Oct12.html

KERRY CAMPAIGN GOES POSITIVE
According to a new report from Nielsen Monitor Plus and the University of
Wisconsin Advertising Project, the presidential campaigns of Sen Kerry and
President Bush continue to narrow their advertising buys to key toss-up
states. According to the study, 87% of all presidential ads aired in the
top 50 markets, although they represent just 27% of the country. In other
words, says the study, "the need for campaigns to focus their finite
advertising budgets on the few states still in contention has left over 70%
of the potential voters largely or completely out of the main way that
presidential campaigns are communicating their message."
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
http://www.broadcastingcable.com/article/CA471245.html?display=Breaking+...
(free access for Benton's Headlines subscribers)
For more information about the report see --
Press Release
http://polisci.wisc.edu/tvadvertising/Press_Releases/Press_Release_PDFs/...
Project home page
http://polisci.wisc.edu/tvadvertising/Index.htm

INDECENCY

SMUT, SATS, DTV UNRESOLVED
Nothing makes democracy safe for the world like Congress going home. Don't
you fret, however, there will be plenty of work for our lame ducks after
the election. On the agenda will be 1) the digital television transition
and the return of spectrum used for analog TV for emergency services; 2)
increasing fines for broadcasting indecent content; and 3) extending the
satellite TV providers' right to import broadcast network programming to
households that can't receive an acceptable analog version from their local
affiliates. The House and Senate seem far apart on spectrum reclamation.
The House passed a non-binding "sense of Congress" [insert your own joke
here] calling on the government to reclaim all TV stations' analog channels
by the end of 2006. At present that spectrum will not be reclaimed until
85% of households have the equipment necessary to receive digital TV
signals. The House passed a bill raising fines for indecency and requiring
FCC action within nine months of a complaint being filed. The Senate is
still working on similar legislation. The House is also waiting on the
Senate to pass a satellite TV bill. The current legislation expires
December 31 and could result in a big bunch of DBS subscribers losing
access to some important bowl games on New Year's Day.
[SOURCE: Broadcasting&Cable, AUTHOR: Bill McConnell]
http://www.broadcastingcable.com/article/CA471489.html?display=Breaking+...
(free access for Benton's Headlines subscribers)

FOX VIOLATION OF INDECENCY RULE FOR "MARRIED BY AMERICA"
The FCC issued a Notice of Apparent Liability for Forfeiture against
various Fox Television Network affiliates for airing indecent material
during an April 7, 2003 episode of the "Married By America" program. The
Commission proposed a forfeiture in the amount of $7,000 for each station
that broadcast the program. The Commission found that the episode, which
aired prior to 10:00 p.m., a time when children were likely to be in the
audience, involved depictions of sexual activity and was patently
offensive. The total is a $1.18 million fine against 169 Fox Television
Network stations. The offending material focused on the Las Vegas bachelor
and bachelorette parties for two couples featuring strippers and sexual
situations. Scenes included party-goers licking whipped cream from
strippers' bodies and a man on all fours in his underwear getting spanked
by two strippers. Fox argued that the scenes were not indecent because
sexual organs were pixilated and because the scenes were fleeting.
[SOURCE: FCC]
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-253053A1.doc
[SOURCE: Broadcasting&Cable]
http://www.broadcastingcable.com/article/CA471564.html?display=Breaking+...
(free access for Benton's Headlines subscribers)
See the FCC order at:
http://hraunfoss.fcc.gov/edocs_public/attachmatch/FCC-04-242A1.doc
Additional coverage --
* Washington Post
One Hollywood executive who works in reality television and agreed to talk
only anonymously said viewers have more power to shield their children from
scheduled television shows than they do from unexpected commercials for
R-rated movies or promotions for local news shows that tout "20 dead, five
raped, coming up at 11. The FCC is wasting time, and they should recognize
that as adults we can be responsible for our children. They should monitor
things we don't have control over," the executive said. "It's a Fox show,
and people should know what they're getting themselves into."
http://www.washingtonpost.com/wp-dyn/articles/A28197-2004Oct12.html
* LA Times
http://www.latimes.com/business/printedition/la-fi-fox13oct13,1,6473419....
* USA Today:
http://www.usatoday.com/printedition/money/20041013/foxfcc13.art.htm
* New York Times
http://www.nytimes.com/2004/10/13/business/media/13fox.html

HOWARD STERN AND THE FUTURE OF MEDIA CENSORSHIP
[Commentary] Anyone who cares about the First Amendment and press freedom
should find chilling that policymakers are proposing regulation of the
underlying business practices or ownership structures of the press, the
content the press airs, and even the newsgathering methods and practices
they utilize. While we can be glad that the Internet and cyberspace have
thus far been able to evade government controls, a two-tier system of First
Amendment freedom is neither sensible nor sustainable. Is it fair, for
example, that CBS.com gets the gold standard of press freedom while CBS
television or radio gets second-class citizenship rights in terms of First
Amendment protections? If CBS airs a clip on its stations deemed "indecent"
by just three of the five FCC regulators, they get fined. But if that same
clip is broadcast on the 'Net, those regulators can't touch it. Does that
make any sense? At some point in the near future the illogical regulatory
distinction between traditional broadcast and new media will be challenged
in the courts. It will force the constitutional question of whether
government can and should censor the media in the future.
[SOURCE: Cato Institute, AUTHOR: Adam Thierer]
http://www.cato.org/tech/tk/041011-tk.html

QUICKLY

ALCOHOL ADS UP; YOUTH DRINKING FLAT
The Center on Alcohol Marketing and Youth has released a study that finds
that alcohol advertising has exploded in recent years -- with cable TV
leading the way -- and that the alcohol industry has a long way to go to
fulfill its promise to reduce the number of such ads in programming with
significant youth viewership.
See the Center's report at http://camy.org/. You can also check what
alcohol ads appeared during programs aired in your area using the Center's
interactive data tool.
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
http://www.broadcastingcable.com/article/CA471011.html?display=Breaking+...
(free access for Benton's Headlines subscribers)

LPTV FACING 'SPECTRUM FIGHTS' DURING DTV TRANSITION
At the Community Broadcasters Association convention, FCC Media Bureau
Chief Engineer Keith Larson said Low Power Television stations (LPTV) face
"spectrum fights down the road" because they use "beach front property"
spectrum coveted by wireless, fixed wireless and unlicensed spectrum
industries. LPTV is threatened particularly by demands for wireless
spectrum after the DTV transition, Larson said, because LPTV stations --
unlike full-power broadcasters -- aren't guaranteed a channel allocation or
freedom from interference. "If wireless companies take all the channels
surrendered [by broadcasters after the transition] you are in a very bleak
position," warned Larson. Although LPTV got 80% of what it wanted in a
recent FCC order on the digital TV conversion, stations would still like to
get more protection and must-carry rights on cable.
[SOURCE: Communications Daily, AUTHOR: Michael Feazel]
(Not available online)

THE ROLE OF RADIO SAWA IN MIDEAST QUESTIONED
Radio Sawa, an Arab-language pop music and news station funded by the U.S.
government and touted by the Bush administration as a success in reaching
out to the Arab world, has failed to meet its mandate of promoting
democracy and pro-American attitudes, according to a draft report prepared
by the State Department's inspector general. The report credited Radio Sawa
with attracting a large audience in key Middle East countries but said the
station, which has an annual budget of $22 million, has been so preoccupied
with building an audience through its music that it has failed to
adequately measure whether it is influencing minds. The report also
questioned the validity of some research given to Congress by the
Broadcasting Board of Governors, Radio Sawa's parent, to demonstrate its
success.
[SOURCE: Washington Post, AUTHOR: Glenn Kessler]
http://www.washingtonpost.com/wp-dyn/articles/A28031-2004Oct12.html
(requires registration)

NCTA OPPOSES TOUGHER CAPTIONING ENFORCEMENT
In July, Telecommunications for the Deaf and other groups asked the FCC to
maintain a database with updated captioning contact information for
programmers and to create a complaint form that viewers could submit when
compliance problems are discovered. The FCC has been phasing in
closed-captioning quotas. As of Jan. 1, broadcasters and cable operators
were required to caption at least 1,350 hours of new English-language
programming per quarter. All English-language programming except for news
and other exempt shows must be captioned beginning Jan. 1, 2006. But the
National Cable & Telecommunications Association came out against the
stronger closed-captioning rules sought by advocates for the deaf. Most
complaints about closed-captioning are caused by "technical glitches" that
"fall short of demonstrating a problem that warrants significant changes in
the rules," NCTA says.
[SOURCE: Broadcasting&Cable, AUTHOR: Bill McConnell]
http://www.broadcastingcable.com/article/CA470932.html?display=Breaking+...
(free access for Benton's Headlines subscribers)

SUPREME COURT DECLINES TO REVIEW FCC'S PHONE COMPETITION RULES
In an expected move, the Supreme Court rejected an appeal to reverse a
decision by the U.S. Appeals Court, D.C., that vacated much of the FCC's
phone competition rules, including the FCC's decision to delegate review to
state commissions. Neither the Bush Administration nor the FCC supported
the appeal. The FCC is working on crafting new rules -- perhaps by the end
of the year.
[SOURCE: Communications Daily, AUTHOR: Susan Polyakova]
(Not available online)

TEMPORARY SUSPENSION OF SCHOOLS AND LIBRARIES/RURAL HEALTH CARE FUNDING
COMMITMENTS
The FCC directed the Universal Service Administrative Company (USAC), the
administrator of the Schools and Libraries (E-rate) and Rural Health Care
Universal Service Support Mechanisms, to change USAC's accounting
methodology by October 1, 2004 to the same methodology that the Federal
Government uses. Among other things, we were informed that this required
USAC to change the rules that we use to account for various financial
transactions, including funding commitments in those programs. The
accounting changes were not intended to have any impact on the way in which
we administer the programs themselves. USAC has sufficient funds on hand to
cover all FCDLs it has issued; however, we cannot issue any new funding
commitments until additional unobligated funds are made available. At this
time, and as some prior FCDLs expire, we expect to be able to issue some
funding commitments in the E-rate and Rural Health Care programs by late
November 2004. USAC is working very closely with the FCC to resolve issues
as quickly as possible, including the priority of commitments to be issued
as we become able to issue new FCDLs.
[SOURCE: Universal Service Administrative Company Notice]
http://www.universalservice.org/new/2004.asp#101204

A LAPTOP IN EVERY LOCKER
With colleges incorporating computers into instruction, and with many
employers assuming that applicants have computer experience, it might be
just a matter of time before computers become as elemental to high school
as backpacks or calculators. Laptop programs have sprung up in Henrico and
Roanoke (VA) counties and across the state of Maine. Many private schools
require students to have personal computers, although students are
generally expected to pay for them. This article focuses on the only high
school in the Alexandria (VA) district which reserved $1.4 million of its
annual budget to lease, insure and administer computers for each student.
The computers would have cost about $1,600 each if students had bought them
individually. "It gives us the ability to level the playing field," said
John Crites, head of technical support for the Alexandria school district.
"If one kid has a computer at home and is able to make graphics and pie
charts and another kid has to draw the graphics and pie charts, the way
their papers come out is going to differ."
[SOURCE: Washington Post, AUTHOR: Tara Bahrampour]
http://www.washingtonpost.com/wp-dyn/articles/A28050-2004Oct12.html
(requires registration)

BROADBAND POLICY -- WHO HAS A BETTER PLAN?
[Commentary] Although they have not gotten to address the issue much in the
campaign, Sen Kerry and President Bush differ in their approaches to
expanding access to broadband Internet service. Sen Kerry emphasizes tax
incentives, advocating a 10% tax credit for companies that invest in
today's technology in rural and inner-city areas. And he proposes a 20% tax
credit for investments anywhere for what he calls next-generation broadband
that will make available much faster speeds than those delivered presently
by telephone-company-provided DSL and cable-company-provided modem
services. Kerry estimates the cost of the tax credits over five years at $2
billion. President Bush does not mention broadband tax credits, choosing
instead, on the tax front, to highlight his opposition to allowing states
and localities to tax broadband services. Most significantly, he
underscores the relationship between regulation and investment in new
networks. For example, in April, Bush stated: "Broadband is going to spread
because it's going to make sense for private sector companies to spread it
so long as the regulatory burden is reduced-in other words, so long as
policy at the government level encourages people to invest, not discourages
investment."
Hopefully, the candidates' very different regulatory philosophies -- one
relying on less regulation and the other more on government financial
support -- will usher in a broader debate about the need to update our
communications laws with a meaningful set of regulatory reforms appropriate
for the digital age.
[SOURCE: Progress and Freedom Foundation, AUTHOR: Randolph J. May]
http://www.pff.org/issues-pubs/opinion/041011broadbandpolicy.html

EFF CHALLENGES SECRET GOVERNMENT ORDER TO SHUT DOWN MEDIA WEBSITES
The Electronic Frontier Foundation (EFF) is representing a coalition of
independent Internet journalists whose websites were shut down on Thursday,
October 7, when their servers were seized by the FBI. The two servers,
which were located in the United Kingdom and managed by San Antonio-based
Rackspace Managed Hosting, hosted Indymedia's Internet radio station and
more than 20 Indymedia websites, as well as several email lists. The
seizure was in response to a "Commissioner's Subpoena" issued at the
request of a foreign government. Citing a gag order, Rackspace has provided
no further details. An FBI spokesperson has confirmed that the subpoena was
issued at the request of Italian and Swiss authorities. Earlier this month,
the FBI made informal requests to both Rackspace and Indymedia to remove an
Indymedia news story that included photos of undercover Swiss investigators
posing as anti-globalization activists.
[SOURCE: Electronic Frontier Foundation Press Release]
http://www.eff.org/news/archives/2004_10.php#001992
For more info see http://indymedia.org/en/static/fbi
See also --
APC condemns "arbitrary" seizure of IndyMedia web servers by US and
European law enforcers
APC condemns the actions by US and European law enforcement agencies to
seize independent online news service Indymedia's web servers, which has
led to the closure of more than 21 of the more than 140 Indymedia web sites
worldwide since October 7. None of the agencies involved has admitted or
provided reasons for the seizure though Rackspace, the company which
provided web hosting for the sites and handed the servers over to law
enforcers, said in a statement that their action was "in compliance with a
court order pursuant to a Mutual Legal Assistance Treaty (MLAT)". MLAT
establishes procedures for countries to assist each other in investigations
regarding international terrorism, kidnapping and money laundering and so
using it to remove an independent news source would appear to be an abuse.
[SOURCE: Association for Progressive Communications Press Release]
http://www.apc.org/english/news/index.shtml?x=26809

FTC FILES FIRST SPYWARE CASE FOLLOWING CDT COMPLAINT
The Federal Trade Commission filed suit in the District Court of New
Hampshire on Thursday against Seismic Entertainment and a former
self-styled "Spam King," Sanford Wallace, taking up a complaint filed by
CDT last February. CDT's complaint highlighted browser hijacking and
deceptive advertising run by Seismic advertising, and CDT subsequently
documented forced installations caused by a Seismic website. The FTC's suit
mentions these and other actions as reasons for its suit.
[SOURCE: Center for Democracy and Technology]
(http://www.cdt.org)
Additional coverage --
*Washington Post
http://www.washingtonpost.com/wp-dyn/articles/A28179-2004Oct12.html
* New York Times
http://www.nytimes.com/2004/10/13/technology/13spy.html
--------------------------------------------------------------
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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