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The FCC is holding a symposium today on the educational potential of
broadband and the US Chamber of Commerce will release a report calling for
telecom regulation certainty. For upcoming media policy events, see
http://www.benton.org/calendar.htm

TODAY'S QUESTION: This wonk's ears perked when Sen Edwards ended the debate
with the image of his father learning math on TV. Is instructional
programming something we should expect of broadcasting today and in the
digital future?

MEDIA POLICY
Ensign Announces Deal to Raise Cap on Indecency Violations, Includes
Penalties for Performers
The New Language of NASCAR
Peacock Proudly Defends WRC
Comcast: Multicasting's Hurdles 'Insurmountable'
FCC Takes Flak Over Flag
News Corp. Might Buy All of Fox
Viacom Gets Stake in Spanish Broadcasting
Radio Goes Digital

TELECOM POLICY
Accounting Issues Emerge as Latest E-Rate Crisis
Phone Group Head Resigns After Uproar
Seventh Circuit: Modem-Fee Case to State Court

QUICKLY
Political Groups Are Big Spenders
Is the PC a Political Machine?
House Approves Spyware Legislation
Federal Court to Rehear Email Privacy Case
USTA Lays Out Key Principles for Telecom Industry Wholesale Rules
Taxation of Online Sales
Position Available: FAIR
Congrats to APC's Karen Banks

MEDIA POLICY

ENSIGN ANNOUNCES DEAL TO RAISE CAP ON INDECENCY VIOLATIONS, INCLUDES
PENALTIES FOR PERFORMERS
On Tuesday, Sen John Ensign (R-NV) announced that he and other leading
lawmakers had cut a major legislative deal to raise the cap on indecency
fines to $500,000 -- and clear the way for the FCC to force on-air
performers to pay the penalties for their off-color utterances. The bill
would also sets timelines for FCC action on indecency complaints, require
the FCC to report annually to Congress on its indecency efforts and calls
for the National Association of Broadcasters to establish a family-viewing
policy. These provisions will be part of the defense spending authorization
bill in conference committee now. Sen Ensign's announcement is a turnaround
from efforts earlier in the day to strip any non-defense-related provisions
from the bill (see story below). In theory, he is responding to quick
pressure applied by the Parents Television Council which has been pushing
for the indecency legislation. Stripped from the bill were provisions to
extend indecency prohibitions to violent broadcast and cable programming
and end FCC efforts to relax agency media ownership rules.
[SOURCE: Current, AUTHOR: Doug Halonen]
http://www.tvweek.com/news.cms?newsId=6455
FCC Indecency-Fine Boost in Jeopardy
Nevada Republican Senator John Ensign has sent a letter to Armed Services
Committee Chairman John Warner (R-VA) and ranking member Carl Levin (D-MI)
saying that extraneous and controversial provisions regarding media
ownership limits and cable indecency could jeopardize agreement on a
defense spending authorization bill tied up in a House-Senate conference.
The bill includes an amendment, offered by Sen Sam Brownback (R-KS), that
would increase fines for indecent broadcast content. That provision has
bi-partisan support. But additional provisions would permanently throw out
the FCC's June 2, 2003 ownership revamp and creating a violence safe harbor
on broadcast outlets. Sen Ensign believes these provisions jeopardize a
compromise on the defense bill before the current Congressional session
ends Oct. 8.
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
http://www.broadcastingcable.com/article/CA468484.html?display=Breaking+...
(free access for Benton's Headlines subscribers)

THE NEW LANGUAGE OF NASCAR
Moments after he won Sunday's race at Talladega Superspeedway in Alabama,
Dale Earnhardt Jr was asked by an NBC reporter about the significance of
the victory. In a fit of self-deprecating glee, Earnhardt recalled the
memory of his legendary father, Dale Earnhardt, who was killed in the 2001
Daytona 500, declaring, "It don't mean [expletive] right now. Daddy's won
here 10 times." NASCAR officials countered yesterday by slapping Earnhardt
with a $10,000 fine and docking him 25 points toward the season's
championship, dropping him from first to second in the standings with seven
races to go. NASCAR's response illuminates the lingering effects of Janet
Jackson's breast-baring halftime show during the National Football League's
Super Bowl, which resulted in more than a half-million complaints and a
record $550,000 FCC fine against 20 CBS-owned stations.
[SOURCE: Washington Post, AUTHOR: Liz Clarke and Dan Steinberg]
http://www.washingtonpost.com/wp-dyn/articles/A8141-2004Oct5.html
(requires registration)

PEACOCK PROUDLY DEFENDS WRC
NBC has asked the Federal Communications Commission to reject the Parent's
Television Council's petition to deny the license renewal of its WRC-TV
Washington, D.C., arguing that the station's record of service to the
community should not be trumped by "a series of unadjudicated (or
dismissed) allegations that certain dialogue within a few of the station's
programs was actionably indecent." NBC argues that it was unaware of
"virtually all" of the referenced complaints, and takes that lack of FCC
notification as evidence that none made a prima facie case for indecency,
"never mind any sort of claim sufficient to raise a material and
substantial question as to the station's extensive and outstanding record
of broadcasting in the public interest." On a broader point, says NBC, "a
single individual should not be able to deny millions of satisfied viewers
a continuation of the station's long-standing and exemplary service because
of that person's complaints about a handful of episodes during more than a
half-decade of television programming. Among that service NBC sites helping
lead the transition to digital TV, Equal Employment Opportunity community
outreach, local news and other locally produced programming, educational
kids shows, Public Service Announcements and top-quality entertainment.
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
http://www.broadcastingcable.com/article/CA468478.html?display=Breaking+...
(free access for Benton's Headlines subscribers)

COMCAST: MULTICASTING'S HURDLES 'INSURMOUNTABLE'
In a meeting last week with several FCC officials, including Media Bureau
Chief Kenneth Ferree, Comcast reiterated the cable giant's position that
requiring cable systems to carry every digital service beamed by local TV
stations -- know as multicast must-carry -- would face "insurmountable"
legal hurdles because of constitutional issues. Chief Ferree has said his
staff has concluded that the FCC's ruling that TV stations were entitled to
carriage of a single programming service was incorrect and that law permits
an interpretation of the 1992 Cable Act that would support a
multicast-carriage mandate. The FCC is moving to resolve the issue by the
end of this year. Comcast argues that a multicast mandate would frustrate
its ability to select programming services most desired by subscribers and
also noted that it is seeking technology that would allow it to reallocate
surplus bandwidth that becomes available when digital-TV stations alternate
between HDTV and less-bit-intensive standard-definition formats. "Thus, to
be denied this flexibility by the [FCC], through a rule that requires the
carriage of multiple program streams for a single broadcaster, would
represent an even greater intrusion on the editorial discretion and the
reasonable investment-backed expectations of the cable operator than a rule
that requires the carriage of a single HDTV programming stream per
broadcaster," Comcast said.
[SOURCE: Multichannel News, AUTHOR: Ted Hearn]
http://www.multichannel.com/article/CA469126.html?display=Breaking+News
(requires subscription)

FCC TAKES FLAK OVER FLAG
Public Knowledge, Consumer's Union, Consumer Federation of America, and a
number of library associations have filed a petition with the DC Court of
Appeals arguing that the FCC had no authority to adopted the broadcast-flag
digital-distribution protection regime for over-the-air digital TV.
Although they concede the FCC has authority over the DTV transmissions,
they argue that the flag does not come into play until after the
transmission is received. "The Broadcast Flag resembles an assertion of FCC
jurisdiction over an entire automobile simply because the car contains a
satellite radio receiver," they argued in the brief. The groups fear the
flag will put undue limitations on copying devices including TiVos, digital
VCRs, iPods, and cell phones. "This is a crucial case that will determine
how much control the government and Hollywood will have over current and
future digital media devices," said Public Knowledge President Gigi Sohn.
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
http://www.broadcastingcable.com/article/CA468967.html?display=Breaking+...
(free access for Benton's Headlines subscribers)
See a Press Release from Public Knowledge at:
http://www.publicknowledge.org/content/press-releases/press_release.2004...
See a Press Release from the Electronic Frontier Foundation:
http://www.eff.org/news/archives/2004_10.php#001968

NEWS CORP MAY BUY ALL OF FOX
News Corp may buy out the 18% of its Fox Entertainment Group unit it
doesn't already own, News Chairman Rupert Murdoch told an investors
conference. Fox owns some of News Corp's most valuable US businesses and
the move to buy Fox may be a major reason for the proposed shift in News
Corp.'s corporate domicile from Australia to the US. Murdoch believes the
deal could be done for about $5 billion. News Corp isn't likely to buy full
ownership of either DirecTV Group, its 34%-owned satellite-TV arm in the
US, or its 35%-owned UK satellite arm, British Sky Broadcasting Group,
Murdoch said. BSkyB would be too expensive, while a DirecTV buyout isn't
possible because of a tax-related agreement with DirecTV's former
controlling shareholder, General Motors.
[SOURCE: Wall Street Journal, AUTHOR: Martin Peers martin.peers( at )wsj.com]
http://online.wsj.com/article/0,,SB109701720828337204,00.html?mod=todays...
(requires subscription)

VIACOM GETS STAKE IN SPANISH BROADCASTING
Viacom has purchased a 10% stake in Spanish Broadcasting System (SBS) in
exchange for in exchange for Viacom's Infinity Broadcasting unit merging an
FM station in San Francisco with SBS, creating what Viacom and SBS describe
as the single most powerful Spanish-language radio station in the market.
Beyond the station deal, the two companies also agreed to join forces to
target Hispanic consumers through television, radio and outdoor advertising
throughout the United States. Analyst David Joyce viewed the transaction as
a positive for Viacom, providing the company with an entry into a "highly
coveted broadcasting subsector."
[SOURCE: TVWeek, AUTHOR: Jay Sherman]
http://www.tvweek.com/news.cms?newsId=6448
Coverage also in --
Wall Street Journal
http://online.wsj.com/article/0,,SB109699936181036705,00.html?mod=todays...
(requires subscription)

RADIO GOES DIGITAL
Like TV, radio is going digital. Nearly 140 stations in the U.S. are
broadcasting digital radio, and an additional 70 are expected to convert by
year's end. A digital FM station has a crisper, cleaner sound approaching
that of a compact disc. When digitized, even AM radio, which is prone to
signal interference, sounds as good as a conventional FM station does
today. Because digital transmission is more efficient than analog, stations
that convert to digital can squeeze two digital channels and an analog
channel on the same frequency. That means a station could have two digital
channels broadcasting different music in the same frequency. National
Public Radio, for instance, is considering a jazz channel that could reside
on an alternative channel. Stations also could use the additional channels
to send messages to listeners, says Robert Struble, chief executive of
iBiquity Digital, which developed the official U.S. standard for digital
radio in 2002. Mr. Struble predicts many stations will beam breaking news
or traffic information in text scrolling across a car radio's LCD screen.
[SOURCE: Wall Street Journal, AUTHOR: Gary McWilliams
gary.mcwilliams( at )wsj.com]
http://online.wsj.com/article/0,,SB109702174476337406,00.html?mod=todays...
(requires subscription)
'TiVo' for Your Radio
Walt Mossberg reviews a new device that aims to do for radio what TiVo did
for television.
http://online.wsj.com/article/0,,SB109701902050037291,00.html?mod=todays...

TELECOM POLICY

ACCOUNTING ISSUES EMERGE AS LATEST E-RATE CRISIS
The Senate Commerce Committee held a hearing on the E-rate Tuesday and an
accounting convention broke out. The Universal Service Administrative
Corporation explained to Senators that it had lost $4.6 million due to an
accounting change that required the company to have more cash on hand --
USAC needed to sell some assets and paid significant penalties. The changes
may also force the FCC to raise the contribution factors for telecos from
8.7% to 10% -- which could help trigger Congressional reform of how
universal service funds are collected as constituents may start complaining
about higher phone bills. [Unfortunately for Republicans, they don't have
Al Gore to kick around for this anymore.] USAC also confirmed that it froze
the E-rate program in August and does not plan to make new funding
commitments until late November at the earliest. Committee Chairman John
McCain (R-AZ) proposed an additional hearing after the election.
[SOURCE: Communications Daily, AUTHOR: Howard Buskirk]
(Not available online)
See additional coverage:
Internet Grants Cut, and F.C.C. Scolded
[SOURCE: New York Times, AUTHOR: Stephen Labaton]
http://www.nytimes.com/2004/10/06/technology/06net.html
(requires registration)

PHONE GROUP HEAD RESIGNS AFTER UPROAR
John D. Windhausen Jr., president of the Association for Local
Telecommunication Services (know as ALTS which represents competitors of
the large regional telephone companies), resigned yesterday after an
internal memo was accidentally filed at the FCC and made available over the
Internet. The document starkly characterized the policy positions of FCC
members and lawmakers and described the need for the association to hire,
for $120,000 a year, a "heavyweight Republican [lobbyist] that can navigate
between the FCC chairman and the White House." The document, written by
Windhausen and presented recently to chief executives of his member
companies, was posted on the FCC Web site only briefly last week but was
there long enough to have been downloaded by communications lobbyists and
lawyers. It is now the talk of telecom insiders. Details of a lobbying
strategy -- and lobbyists' assessments of the officials they lobby -- are
usually top secret. Lawmakers and regulators exhibit a strong distaste for
any hint that interest groups are working to manipulate them, even though
that is precisely what lobbyists regularly do.
[SOURCE: Washington Post, AUTHOR: Jeffrey H. Birnbaum and Christopher Stern]
http://www.washingtonpost.com/wp-dyn/articles/A9726-2004Oct5.html
(requires registration)

SEVENTH CIRCUIT: MODEM-FEE CASE TO STATE COURT
The U.S Court of Appeals for the Seventh Circuit in Chicago on Friday ruled
that cable-modem litigation between the city of Chicago, Comcast Corp. and
other cable companies belongs in state court as a contract dispute. By
returning the case to state court, the Seventh Circuit panel did not give
Chicago the green light to collect cable-modem franchise fees. The city
still has to persuade a state court that its cable-franchise agreement
requires Comcast to pay the fees despite the FCC's classification of
cable-modem service as an interstate information service. After the FCC's
cable-modem-classification ruling in March 2002, cable operators stopping
paying cable-modem franchise fees. Some MSOs said they had to cease
payments because they feared class-action suits brought by subscribers.
[SOURCE: Multichannel News, AUTHOR: Ted Hearn]
http://www.multichannel.com/article/CA468474.html?display=Breaking+News
(requires subscription)

QUICKLY

POLITICAL GROUPS ARE BIG SPENDERS
Political parties, political action committees and independent groups spent
more than $60 million in September on advertising to influence the
presidential race. The unprecedented level of spending comes in a campaign
in which every fundraising record has been broken. See who's spending how
much at the URL below.
[SOURCE: Los Angeles Times, AUTHOR:Lisa Getter]
http://www.latimes.com/news/printedition/asection/la-na-money6oct06,1,64...
(requires registration)

IS THE PC A POLITICAL MACHINE?
As the presidential race turns red hot in the weeks leading up to Nov. 2,
political Web sites are popping up faster than political leaflets rolling
off the presses. Read about some examples at the URL below.
[SOURCE: C-Net|News.com, AUTHOR: Dawn Kawamoto]
http://news.com.com/Is+the+PC+a+political+machine/2100-1028_3-5397598.ht...

HOUSE APPROVES SPYWARE LEGISLATION
By a 399-1 vote, House members approved legislation prohibiting "taking
control" of a computer, surreptitiously modifying a Web browser's home
page, or disabling antivirus software without proper authorization. The Spy
Act would also create a complicated set of rules governing software capable
of transmitting information across the Internet. It would give the Federal
Trade Commission authority to police violations of the law and to levy
fines of up to $3 million in the most pernicious cases. A similar bill is
pending in the Senate. The lone "Nay" was cast by Rep Ron Paul (R-TX) a
vocal libertarian who frequently says the federal government should not be
policing the Internet.
[SOURCE: C|Net/News.com, AUTHOR: Declan McCullagh]
http://news.com.com/House+approves+spyware+legislation/2100-1028_3-53978...

FEDERAL COURT TO REHEAR EMAIL PRIVACY CASE
A federal court of appeals has announced it will rehear its earlier
decision that the wiretap laws do not apply to real-time interception of
email. CDT and three other organizations had urged the court to reconsider
its ruling in an amicus brief arguing that the original appeals court
decision potentially created a loophole for law enforcement and ISP access
to email.
[SOURCE: Center for Democracy and Technology]
http://www.cdt.org
There's more at the Electronic Privacy Information Center
http://www.epic.org/

USTA LAYS OUT KEY PRINCIPLES FOR TELECOM INDUSTRY WHOLESALE RULES
USTA filed comments with the FCC laying out three key principles for the
Commission to follow it its proceeding on wholesale rules: 1) the rules
must advance facilities-based competition; 2) the rules must be narrowly
tailored to avoid harming competition; and the new rules should provide
certainty and be effective immediately. USTA said, "The courts have
invalidated the FCC's approach three times in the past eight years. Yet,
each of these court rulings has provided the FCC with clear guidance
regarding what would constitute lawful unbundling rules. As a whole, these
decisions require the FCC to take into account real competition in various
markets and to compel unbundling only where competitors cannot compete
without access to certain incumbent local exchange carrier ("ILEC")
facilities. It should be absolutely clear now that the Commission is
required to follow the guidance of the courts in order to create lawful
unbundling rules."
[SOURCE: United States Telecom Association Press Release]
http://www.usta.org/news_releases.php?urh=home.news.nr2004_1005

TAXATION OF ONLINE SALES: COMPETING WITH THE STREAMLINED SALES TAX PROJECT
The Progress and Freedom Foundation released a new report Monday on the
Streamlined Sales Tax Project (SSTP), multi-state compact to harmonize
elements of state taxation. With the growth of e-commerce, state
governments have become increasingly concerned about the potential loss of
sales and use tax remissions on remote purchases by their residents.
[SOURCE: Progress and Freedom Foundation]
http://www.pff.org/news/news/2004/100404sstp.html
The Progress & Freedom Foundation is a market-oriented think tank that
studies the digital revolution and its implications for public policy.

FAIR is looking for a Development Director.
http://www.fair.org/posting.html

The Association for Progressive Communication's Karen Banks Wins Anita Borg
Award for Social Impact
The award recognizes significant and sustained contributions in technology.
http://www.apc.org/english/news/index.shtml?x=26581

CORRECTION: The Technology Opportunities Program can now be found online at
http://www.ntia.doc.gov/top/
--------------------------------------------------------------
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.
--------------------------------------------------------------

Two events today at the FCC: the launch of a public education campaign on
digital television (see story below) and a meeting of the Advisory
Committee on Diversity for Communications. For these and other upcoming
media policy events, see http://www.benton.org/calendar.htm

TELEVISION
Watchdogs Protest Exclusion From FCC DTV Transition Campaign
Station Renewals Held Up
Static Over Bandwidth
Five-Minute Warning on Indecency
Italy's TV Plan Worries Critics

RADIO
Clear Channel's Ad-Trim Plans Irk Some Clients
The Broad Reach of Satellite Radio

COMMUNICATIONS & ELECTIONS
Presidential Candidates Spend Little Time on Tech Issues
Online Political Ads
Big Four Lo$e Debates

TELECOM
Internet Grants to Schools Halted as the FCC Tightens the Rules
For Cingular, Now Comes the Hard Part

INTELLECTUAL PROPERTY/SPYWARE
U.S. Prepares to Crack Down On Intellectual-Property Piracy
California Law Seen as First Salvo in Spyware Fight

TELEVISION

WATCHDOGS PROTEST EXCLUSION FROM FCC DTV TRANSITION CAMPAIGN
In a letter to FCC Chairman Michael Powell, members of the Public Interest,
Public Airwaves Coalition [which includes the Benton Foundation] criticized
plans for a launch of a public education campaign concerning digital
television because there are no plans to address outstanding public
interest concerns. "A public education campaign that fails to include the
public perspective and the public interest is a charade," said the group.
The watchdog groups said they will be setting up a table outside the
agency's headquarters building to "focus attention on the FCC's continuing
failure to address the need for specific, quantifiable public interest
obligations for broadcasters." A spokesperson for Chairman Powell responded
to the groups concerns by saying, ""How is complaining about a public
education campaign in the public interest?"
For more on PIPA Coalition see http://www.mediachannel.org/new/
[SOURCE: TVWeek, AUTHOR: Doug Halonen]
http://www.tvweek.com/news.cms?newsId=6429
For more on the FCC's event see:
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-252835A1.doc
See also:
Activists Knock Powell HD Powwow
http://www.broadcastingcable.com/article/CA457777.html?display=Breaking+...
(free access for Benton's Headlines subscribers)

STATION RENEWALS HELD UP
Because of outstanding complaints, mainly for indecency, three-quarters of
the TV stations in Washington (DC), Maryland, Virginia and West Virginia
may have to wait until next year to get their licenses renewed. The four
states are the first of 18 blocks of TV licenses the FCC must renew through
2007. The industry is watching the first group closely. The current renewal
cycle is first since the Congress greatly relaxed renewal requirements in
1996, but opponents of media consolidation and other activists are vowing
to fight renewals of stations they believe are not providing appropriate
programming to children or otherwise living up to public interest obligations.
[SOURCE: Broadcasting&Cable, AUTHOR: Bill McConnell]
http://www.broadcastingcable.com/article/CA457950.html?display=Breaking+...
(free access for Benton's Headlines subscribers)

STATIC OVER BANDWIDTH
For almost 50 years, TV stations have had a valuable slice of the airwaves
almost entirely to themselves. Soon, however, their gated community could
become considerably less exclusive. By summer 2005, the FCC plans to issue
rules permitting unlicensed use of vacant TV channels for connecting to
high-speed networks, transmitting e-mails and linking up home offices.
Despite a promise from FCC staff not to allow interference with TV the fine
print of the FCC's proposal could pose some threats. The threat of
interference is particularly worrisome because of the switch to digital
transmission. Traditional analog transmissions are reasonably tolerant of
interference and often absorb signal conflicts with little more than some
snow or ghosting on the viewers' screens. Digital pictures, however, can be
completely obliterated by even a small amount of interference.
[SOURCE: Broadcasting&Cable, AUTHOR: Bill McConnell]
http://www.broadcastingcable.com/article/CA458080.html?display=Washingto...
(free access for Benton's Headlines subscribers)

FIVE-MINUTE WARNING ON INDECENCY
In the wake of the FCC's Sept. 22 proposed $550,000 fine against CBS for
the Super Bowl halftime show, the Commissioners appear to be requiring that
stations prepare to cut out any unwanted surprises. In its decision, the
FCC said CBS's five-second delay-long enough to expunge cursing or other
inappropriate audio-wasn't enough of a precaution. Although the FCC decided
that affiliates not owned by CBS had no chance of predicting Jackson's
antics and wouldn't be fined this time, they can't expect similar leniency
in the future. "We urge each licensee to take reasonable precautions in the
future, such as employing such delay technology to independently prescreen
the network feed to prevent the broadcast of indecent programming over its
licensed station," the FCC declared in its order.
[SOURCE: Broadcasting&Cable, AUTHOR: Bill McConnell]
http://www.broadcastingcable.com/article/CA458093.html?display=Breaking+...
(free access for Benton's Headlines subscribers)

ITALY'S TV PLAN WORRIES CRITICS
Think media ownership concentration is bad in the US? One company owns
three TV channels in Italy accounting for a 44% share of Italy's TV market.
44.9% of the market goes to RAI, the state-owned broadcaster. Problem is
that one company and the government are headed by the same man, Silvio
Berlusconi, the media tycoon turned politician. Now Berlusconi wants to
sell off at least 20% of RAI by March. Apart from meeting resistance from
opposition politicians, the plan infuriates left-leaning intellectuals and
disturbs some experts on competition policy who say the privatization may
tighten the Berlusconi empire's grip on Italy's TV market.
[SOURCE: Los Angeles Times, AUTHOR:Tony Barber, Financial Times]
http://www.latimes.com/business/printedition/la-ft-italy4oct04,1,1416887...
(requires registration)

RADIO

CLEAR CHANNEL'S AD-TRIM PLANS IRK SOME CLIENTS
Earlier this year, the nation's largest owner of radio stations, Clear
Channel, announced that it would to persuade advertisers to cut their
standard 60-second spots in half while restricting ad time to 15 minutes or
less per hour and never letting more than six ads air in a row. In short,
the company thought radio listeners were tuning out because of advertising
clutter. But advertisers don't like the plan which they call "Giving you
less, charging you more." In the radio industry, a 30-second spot typically
costs about 80% of the price of a 60-second pitch: Advertisers usually
figure they might as well spend the extra cash and get a full minute. And
advertisers, it turns out, don't like having to cram their message into
half the time they're used to.
[SOURCE: Wall Street Journal, AUTHOR: Sarah McBride sarah.mcbride( at )wsj.com ]
http://online.wsj.com/article/0,,SB109684363342334801,00.html?mod=todays...
(requires subscription)

THE BROAD REACH OF SATELLITE RADIO
Satellite radio is trying to win subscribers by hiring the personalities
who have a hard time on broadcast radio. One competitive advantage
satellite radio has over conventional radio is that, because it charges
listeners a fee, much like cable television, under federal regulations it
is subject to looser rules than stations that are free. The rapper Eminem
cited looser federal restrictions as a reason he agreed to be the host of
shows on Sirius to begin later this year. Gregg Hughes (the Opie of the
shock-jock duo) and Anthony Cumia also said they were attracted to
satellite radio by the less restrictive rules. The freedom could help the
companies win more subscribers more quickly, analysts said. The two
satellite companies still play a relatively small role in radio. They
currently have about 3.1 million subscribers between them, a tiny fraction
of the more than 200 million listeners who tune into conventional radio
stations every day. "The paid platform now has an advantage," said Blair
Levin, a managing director at Legg Mason, who served as chief of staff at
the FCC from 1993 to 1997. "To the extent that there are greater
restrictions, certain kinds of programming will migrate" to satellite
providers.
[SOURCE: New York Times, AUTHOR: Sabrina Tavernise]
http://www.nytimes.com/2004/10/04/technology/04radio.html
(requires registration)

COMMUNICATIONS & ELECTIONS

PRESIDENTIAL CANDIDATES SPEND LITTLE TIME ON TECH ISSUES
[Commentary] In a campaign dominated by war and the economy, Gillmor does
not expect discussion on technology issues, but feels they are still
important. He faults the Bush Administration as the US has fallen behind in
extending broadband and credits the FCC for good spectrum policy, but poor
competition policy. Chairman Powell, Gillmor writes, has carried water for
the mass-media industry as a whole, pushing ahead with rules that make it
easier for already giant media companies to become even bigger. Sen Kerry
has been an outspoken critic of these rules changes and voted to maintain
the old media ownership rules. Gillmor concludes: "Bush's tenure has not
been an overall positive for communications policy, though there have been
some useful initiatives. If a Kerry administration followed through on its
stated positions, we could do considerably better."
[SOURCE: San Jose Mercury News, AUTHOR: Dan Gillmor]
http://www.mercurynews.com/mld/mercurynews/business/technology/9825169.htm

ONLINE POLITICAL ADS
The presidential candidates, national political parties, and advocacy
groups ("527s") spent a combined total of only $2.66 million for
advertisements on the web between January and August of 2004. That is less
than half of what the John Kerry campaign raised in contributions from the
Internet in a single day: $5.7 million on July 29, the day Kerry gave his
nomination acceptance speech. According to a new Pew Internet & American
Life Project study, the Kerry campaign has outspent the Bush campaign by a
3:1 margin: $1.3 million to $419,000. The Republican National Committee
has spent $487,000; the Democratic National Committee, $257,000. Advocacy
groups have spent $184,000 combined, with $104,000 by the MoveOn.org Voter
Fund.
[SOURCE: Pew Internet & American Life Project Press Release]
http://www.pewinternet.org/
See coverage in --
WashPost: http://www.washingtonpost.com/wp-dyn/articles/A4446-2004Oct3.html

BIG FOUR LO$E DEBATES
B&C offers estimates for how much broadcast networks "lost" by airing the
first presidential debate on Thursday night from 9 to 11 p.m. According to
Brad Adgate of Horizon Media, that's when networks collect 30%-40% of all
prime time revenue. Industry estimates suggest that by forgoing The
Apprentice and ER, NBC probably gave away $32.5 million. CBS's CSI and
Without a Trace could have netted $20.1 million. And ABC's Life As We Know
It and Primetime Thursday might have landed $5.2 million. Fox sacrificed
$3.6 million for Tru Calling. The total: $61.4 million. [Or just over 6% of
what will be spent on political ads this election year.]
[SOURCE: Broadcasting&Cable, AUTHOR: Joel Meyer]
http://www.broadcastingcable.com/article/CA458061.html?display=Breaking+...
(free access for Benton's Headlines subscribers)

TELECOM

INTERNET GRANTS TO SCHOOLS HALTED AS THE FCC TIGHTENS THE RULES
Public libraries and schools around the nation have suddenly stopped
receiving any new grants from the E-Rate program that is wrestling with new
rules on how it spends $2.25 billion each year to provide high-speed
Internet and telephone service. The moratorium began two months ago, with
no notice, and may last for months, causing significant hardships at
schools and libraries, say state officials and executives at the company
that runs the program. The suspension came after the FCC, in consultation
with the White House, imposed tighter spending rules that commission
officials say will make it easier to detect fraud and waste in the program.
As much as $1 billion in grants the states say they expected to receive by
the end of the year may be affected, one official estimate says. That has
led state administrators to either take money from other educational
programs or postpone paying their phone and Internet companies. The tighter
spending rules also forced the Universal Service Administrative Company,
the nonprofit group that runs the program under the commission's oversight,
to hastily liquidate more than $3 billion in investments last week. The
sale generated a loss, but officials said they had not yet calculated the
amount. And the changes are expected to lead to higher charge imposed on
telephone companies - and passed on to consumers - later this year or early
next year. The increase may be necessary, senior officials at the universal
service company said, because of a cash squeeze created by the tighter
spending rules and an FCC decision over the last nine months to reduce the
phone companies' contributions to the E-rate program.
[SOURCE: New York Times, AUTHOR: Stephen Labaton]
http://www.nytimes.com/2004/10/04/business/media/04fcc.html
(requires registration)
The Senate Commerce Committee will be discussing the E-rate program
tomorrow. See
http://commerce.senate.gov/hearings/witnesslist.cfm?id=1330

FOR CINGULAR, NOW COMES THE HARD PART
BusinessWeek reports that Cingular and AT&T Wireless merger will receive
Department of Justice approval as early as this week and approval from the
FCC some weeks after. The combined company will be the No. 1 U.S.
wireless-service provider. Both outfits have been working over the past
month to get regulatory approval. In September, Cingular sold its messaging
unit and swapped some wireless operations with service provider Triton PCS.
AT&T Wireless sold its stakes in service providers Eurotel Bratislava and
Rogers Wireless. Additional divestitures of wireless spectrum and,
possibly, pieces of AT&T Wireless's network might be required, but analysts
believe they would likely be relatively minor.
[SOURCE: BusinessWeek, AUTHOR: Olga Kharif]
http://www.businessweek.com/technology/content/oct2004/tc20040101_2244_t...
In a related story, AT&T Primps Books As Phone Industry Girds for
Takeovers, the Wall Street Journal reports that the nation's biggest
telephone companies are preparing for another round of acquisitions. The
three companies identified as possible buyers are BellSouth, SBC and
Verizon while the companies on the block seem to be AT&T and MCI.
http://online.wsj.com/article/0,,SB109684504837134841,00.html?mod=todays...
(requires subscription)

INTELLECTUAL PROPERTY/SPYWARE

U.S. PREPARES TO CRACK DOWN ON INTELLECTUAL-PROPERTY PIRACY
Attorney General John Ashcroft, Commerce Secretary Don Evans and U.S. Trade
Representative Robert Zoellick, and senior officials from the Department of
Homeland Security announce today a coordinated crackdown on the theft of
U.S. intellectual property, such as pirated compact discs and knockoff auto
parts, which U.S. officials say amounts to about 7% of global trade. Called
the Strategy Targeting Organized Piracy, or Stop, the effort consists of
immediate steps to be taken by federal agencies, together with legal and
administrative changes to be made in coming months.
[SOURCE: Wall Street Journal, AUTHOR: Neil King Jr. neil.king( at )wsj.com]
http://online.wsj.com/article/0,,SB109684335731934784,00.html?mod=todays...
(requires subscription)
Here's links to related stories:
* LATimes: Firms to Address Piracy Locks
Sony, Samsung, Royal Philips Electronics and Panasonic have agreed to
develop a framework for digital rights management that will work with a
variety of devices and services
http://www.latimes.com/business/printedition/la-fi-drm4oct04,1,3952021.s...
Same story covered by News.com
http://news.com.com/Tech+powers+seek+antipiracy+accord/2100-1025_3-53943...
* WSJ: New File-Swapping Software Limits Sharers to a Select Few
Grouper Networks has developed software that lets people share music,
movies, photos and other digital data on their computers with small groups
of users, limited to no more than 30 people.
http://online.wsj.com/article/0,,SB109684670650734905,00.html?mod=todays...
(requires subscription)

CALIFORNIA LAW SEEN AS FIRST SALVO IN SPYWARE FIGHT
California's pioneering law aimed at cracking down on spyware -- signed
this week to curb the software that hides on computers and secretly follows
users around the Web -- is only a partial step toward protecting consumers.
Critics say the law targets only the most egregious offenders, while
failing to address pop-up ads and other spyware-related problems.
[SOURCE: Reuters, AUTHOR: Lisa Baertlein]
http://www.reuters.com/newsArticle.jhtml?type=internetNews&storyID=6394532
For more on spyware see:
What's Lurking In Your PC?
http://www.businessweek.com/technology/content/sep2004/tc20040927_6762.htm
--------------------------------------------------------------
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.
--------------------------------------------------------------

Check local listings for coverage of the first debate between President
Bush and Senator Kerry.
For upcoming media policy events, see http://www.benton.org/calendar.htm

THE NAB WINS AGAIN!
Senate Puts Limits on FCC's Waiver Ability
Lobbying Juggernaut
Most Broadcasters Carry Digital Signals At Low Power

MEDIA & ELECTIONS
Fox Shuns Debate Restrictions
Big Brother Barton

INTELLECTUAL PROPERTY AND PRIVACY
Senate Bill Aims at Makers of File-Sharing Software
Carriers Promise Congress Wireless 411 Will Protect Privacy
California Governor Vetoes Privacy Bills

QUICKLY
A Caution on Kids, Technology

UPCOMING CONFERENCES
Communication, Information and Internet Policy (TPRC)
Making the Grade?: A Report Card on US Policies for
the Information Society (CPSR)

THE NAB WINS AGAIN!

SENATE PUTS LIMITS ON FCC'S WAIVER ABILITY
Sens. Conrad Burns (R-MT) John McCain (R-AZ) reached an agreement on an
amendment to National Intelligence Reform Act, being debated on the Senate
floor this week, that they promise will make some public spectrum currently
used for television broadcasting available for public safety officials by
January 1, 2008. The compromise would limit the ability of the FCC to waive
requirements that 75 TV stations operating on channels 63 through 69 to
vacate their frequencies.
CommunicationsDaily reports that broadcasters would only have to vacate if
there was a bona fide request from public safety officials. The compromise
also means it is much less likely that there will be a hard date set by
Congress to end the transition to digital TV broadcasting.
Broadcasting&Cable reports that the compromise also means the elimination
of an amendment -- from Sen Frank Lautenberg (D-NJ) -- that would have
established guidelines for DTV public interest obligations. There is also a
billion dollars earmarked from spectrum auctions to help buy DTV converters
for viewers who can't afford them, but Sen McCain suggested the absence of
a hard date for that reclamation meant there would be no money either for
the boxes or to help fund emergency communications. Sen McCain also
suggested the National Association of Broadcaster's support for the
compromise was tantamount to selling out the channel 62-69 stations, many
Hispanic and religious, and though he endorsed the compromise, asked the
FCC and the House Commerce Committee to investigate the "discriminatory
treatment" of those stations.
[SOURCE: TVWeek, AUTHOR: Doug Halonen]
http://www.tvweek.com/news.cms?newsId=6416
Senate Approves Deadline for Public Safety Spectrum Return
[SOURCE: Communications Daily, AUTHOR: Terry Lane]
(Not available online)
Spectrum-Reclamation Amendment Passes
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
http://www.broadcastingcable.com/article/CA457257.html?display=Breaking+...
(free access for Benton's Headlines subscribers)

LOBBYING JUGGERNAUT
Just how much sway do broadcasters have over lawmakers? Plenty according to
the anecdotal evidence presented by Layton. The National Association of
Broadcasters (NAB) is considered the most powerful of all media lobbying
groups. Meredith McGehee, who heads the Alliance for Better Campaigns, says
when she brings up an issue with congressional staffers, "They'll say, 'How
does the NAB stand on this?' And if the NAB is against it, they'll say,
'You haven't got a chance.'" The organization is huge: total net assets of
$66.7 million in 2003; it collects over $50 million/year in membership
dues, conventions, seminars, sales of merchandise and other activities; its
annual payroll exceeds $12.5 million; it spent $3.7 million on lobbying in
2003 and gave more than $2.2 million over the past four years to candidates
for federal office, nearly two-thirds of that to Republicans. As an
interest group, the media include not just the NAB but also powerful
companies like General Electric (which owns NBC), Viacom, Disney (which
owns ABC) and News Corp. (which owns Fox). Their interests are so diverse
as to touch on nearly every big issue newspeople cover--tax policy, health
care, environmental regulation, insurance regulation, financial services
regulation, labor law, equal employment opportunity rules, defense
spending, global trade policy and even sports. It's understandable that
politicians would fear such concentrated power. But they might fear it just
a little less if the very people who deliver the news for these companies
were not so often involved in their lobbying and public relations.
There's much more at the URL below.
[SOURCE: American Journalism Review, AUTHOR: Charles Layton]
http://www.ajr.org/article_printable.asp?id=3748

MOST BROADCASTERS CARRY DIGITAL SIGNALS AT LOW POWER
As of August, there were 1,445 digital television stations in the US: 651
operating at full power and the rest -- 794 -- operating at lower than
assigned power, says Rick Chessen, head of the FCC DTV Task Force. This
worries digital TV set makers who think the decreased power means a smaller
service area which means less people buying digital sets to receive digital
signals. [And for those watching the transition to digital-only
broadcasters, that means a longer time until markets reach the 85% digital
TV threshold which would trigger the end of analog signals in that area. In
turn that means a longer period when broadcasters control analog and
digital TV spectrum that could be used for other uses.] The FCC requires
the top 400 TV stations to be at full power digital by July 2005 -- and all
other stations one year later. But communications equipment manufacturers
are worried that broadcasters are waiting for the deadline and that
installers will not be able to handle the crush of orders when they come.
[That, in turn, could create a crush of waiver requests at the FCC.]
[SOURCE: Communications Daily, AUTHOR: Tania Panczyk-Collins]
(Not available online)

MEDIA & ELECTIONS

FOX SHUNS DEBATE RESTRICTIONS
Trying to protect the image their candidates project during the upcoming
debates, the campaigns hammered out an agreement that includes guidelines
for news operations covering the event: no cut-aways to other candidates,
no shots from the back, no audience or family cut-aways, and more.
According to a source who worked at one of the network news departments in
2000, the requests aren't all that new. "The campaigns called up and asked
for similar restrictions," which the network promptly ignored, he said,
"they just didn't write them down." Fox, which is providing the network
pool feed for the first presidential debate Thursday night, says it will
not abide by extensive debate coverage restrictions because it was not part
of the negotiations.
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
http://www.broadcastingcable.com/article/CA457256.html?display=Breaking+...
(free access for Benton's Headlines subscribers)
Fox viewers in the San Francisco area will get to see the first debate
after all. The station will allow Fox Sports Bay Area to cover tonight's
Giants-Padres game and pick up a game later in the season that the cable
channel was to show.
http://www.broadcastingcable.com/article/CA457254.html?display=Breaking+...
(free access for Benton's Headlines subscribers)

BIG BROTHER BARTON
[Editorial] The WSJ does not agree with House Commerce Committee Chairman
Joe Barton's call for hearings on TV new operations. Aside from the fact
that it's a terrible idea to have Congress monitoring the evening news,
what piqued the WSJ's interest is that earlier this month Rep Barton had
dismissed calls for a Congressional probe into Rather-gate and said the
media and viewers should sort it out. The WSJ agrees -- and called his
office for an explanation of this sudden loss of faith in market forces and
the First Amendment. Rep Barton explained that he's just saying it is a
legitimate issue to investigate and that he believes hearings, if they
happen, should not be held until after the election. The editorial
concludes: We're more accustomed to watching the political left play this
game of media intimidation, especially by calling for a return of the
"fairness doctrine." Ever since the FCC deep-sixed that rule in 1987, thus
opening the airwaves to more vigorous commentary, liberals have talked of
restoring it to muzzle the likes of Rush Limbaugh, Fox News and other
conservative media voices they don't like. But Mr. Barton's intimations
demonstrate that both sides of the aisle share these dubious tendencies. Be
it Mr. Rather or Mr. Limbaugh, Big Brother has no business telling press
organs how to do their job. In a democracy, that's a function of the
people, who in CBS's case can vote with their remote.
[SOURCE: Wall Street Journal, AUTHOR: WSJ Editorial Staff]
http://online.wsj.com/article/0,,SB109649985807931919,00.html?mod=todays...
(requires subscription)

INTELLECTUAL PROPERTY AND PRIVACY

SENATE BILL AIMS AT MAKERS OF FILE-SHARING SOFTWARE
Negotiations on the language of the Inducing Infringement of Copyrights Act
of 2004 (Induce Act) will be held today and a vote on the bill could come
as early as next week. The legislation is aimed at the makers of
peer-to-peer file-sharing software, rather than at those who use it.
Supporters of the bill say it is needed to curb abuses of intellectual
property rights. Opponents contend that its broad language will stifle
innovation. The bill is opposed by Public Knowledge and the Electronic
Frontier Foundation, but also conservative groups like the American
Conservative Union, the national taxpayers Union and the Heritage
Foundation. "Compromising property rights and encouraging predatory, costly
litigation is not a conservative position," ads sponsored by the opposition
say. Supporters contend that in the absence of tough legislation,
commercial enterprises like Kazaa and Grokster will continue to reap
profits from rampant illegal behavior on the peer-to-peer networks.
See much more at the URL below.
[SOURCE: New York Times, AUTHOR: Tom Zeller Jr]
http://www.nytimes.com/2004/09/30/technology/30peer.html
(requires registration)

CARRIERS PROMISE CONGRESS WIRELESS 411 WILL PROTECT PRIVACY
Trust us, really, we're nice guys... we'd never endanger someone's privacy.
That's what the wireless industry told the House Commerce Committee
Wednesday as the panel considered legislation that would mandate opt-in and
opt-out requirements for 411 directories for cell phones. House Telecom
Subcommittee Chairman Upton (R-MI) said in a written statement that
legislation does not appear necessary and chief wireless lobbyist Steve
Largent, the former Congressman, said legislation would stifle development
of such directories. Members had several questions for wireless officials
about wireless service contracts, many of which contain provisions that let
a carrier sell a subscriber's phone number, address and other information.
But the major carriers that plan to participate in the directory told
Congress they wouldn't release personal information and wouldn't take
advantage of the contract language for a wireless directory.
[SOURCE: Communications Daily, AUTHOR: Terry Lane]
(Not available online)
More coverage --
USAToday
http://www.usatoday.com/printedition/news/20040930/edit30.art.htm

CALIFORNIA GOVERNOR VETOES PRIVACY BILLS
Gov. Arnold Schwarzenegger (R-CA) on Wednesday vetoed three bills aimed at
boosting e-mail privacy at work as well as safeguard private medical and
financial data. The e-mail bill that would have required the state's
employers to give workers written notification if e-mail and other Internet
activity was being monitored at work and is similar to a state law that
requires notification if telephone calls are monitored. Supporters said it
would make California a leader in the effort to protect employee privacy
online and could serve as a model for similar bills in other states.
Critics said it would burden employers and is unnecessary because employees
already assume online activities at work are monitored. Business groups
also opposed the bill because any violation of it would be considered a
misdemeanor.
[SOURCE: Reuters]
http://www.reuters.com/newsArticle.jhtml;jsessionid=GML3S5JT1N5V4CRBAEOC...

QUICKLY

A CAUTION ON KIDS, TECHNOLOGY
Today the Alliance for Childhood -- a partnership of educators,
researchers, health professionals and other advocates for children -- will
release a report, Tech Tonic, that contends that do not need the technology
education they are receiving to be successful in the 21st century, and
there are growing indications that the high-tech lifestyle promoted by
government and business may be harmful to them. The group finds scant
evidence of long-term benefits from immersing preschool- and school-age
children in electronic technologies. The report makes a series of
recommendations to parents, educators and policymakers, including declaring
one day a week an electronic entertainment-free zone and shifting spending
from unproven high-tech products in the classroom to children's unmet basic
needs.
See the report at
http://www.allianceforchildhood.net/projects/computers/pdf_files/tech_to...
[SOURCE: Washington Post, AUTHOR: Valerie Strauss]
http://www.washingtonpost.com/wp-dyn/articles/A60551-2004Sep29.html
(requires registration)

UPCOMING CONFERENCES

32ND RESEARCH CONFERENCE ON COMMUNICATION, INFORMATION AND INTERNET POLICY
(TPRC)
An annual forum for scholars engaged in publishable research on
policy-relevant telecommunications and information issues, and for public-
and private-sector decision makers engaged in telecommunications and
information policy. The purpose of the conference is to acquaint policy
makers with the best of recent research and to familiarize researchers with
the knowledge needs of policy makers. This year's TPRC will be held October
1-3, 2004 hosted by The National Center for Technology & Law, George Mason
University School of Law.
http://www.tprc.org/

MAKING THE GRADE?: A REPORT CARD ON US POLICIES FOR THE INFORMATION SOCIETY
(CPSR)
Annual Conference of Computer Professionals for Social Responsibility --
Saturday, October 16
With the presidential election rapidly approaching, people are taking stock
of what the Bush Administration has or has not achieved during its time in
office. What has the administration achieved with its policies on
telecommunications, radio frequency spectrum, mass media, the Internet,
electronic commerce, privacy protection, spam and consumer protection, and
media convergence? What about its policies on the application of ICT in
fields like privacy protection and homeland security, electoral voting, and
the work place? What has it done with respect to global policy challenges
like Internet governance, international trade, intellectual property, and
the developing countries? Experts from academia, civil society
organizations, and the private sector will analyze the administration's
performance on a variety of ICT issues and each give a "grade" on the
merits. Later in the conference, these grades will be aggregated and
averaged in a "Report Card"---a big picture overview of and cumulative
final grade on current US policy. The conference will conclude with an
open discussion on how to advance a public interest agenda that is suited
to the current technological and policy environment, and on the roles that
CPSR and other progressive advocacy organizations can play in such an
effort. The conference sessions will be interactive and offer ample
opportunity for audience members to weigh in with their views.
http://cpsr.org/conferences/annmtg04/
--------------------------------------------------------------
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.
--------------------------------------------------------------

Media ownership is on today's calendar with a hearing in the Senate and a=20
panel discussion this evening at the National Press Club. The Senate will=20
also be discussing Effectiveness of Media Rating Systems. For these and=20
other upcoming media policy events, see http://www.benton.org/calendar.htm

MEDIA POLICY
Media Reform at a Crossroads
Study Rejects Print-Broadcast Combos
700 MHz Issues are Perplexing
U.S. Senate to Weigh Bill Targeting Web Song Swaps
CBS Fine Fires up Desires for Strict Federal Nanny

PUBLIC BROADCASTING
To BBC's Rivals, 'Auntie' Is Too Big For Its Britches
Morphing Commercial Radio Could Attract Pubradio Fans
Petitioner Angles for Time on 7 Midwestern Stations

CABLE
Time Warner, Comcast Weigh Bid for Adelphia
Digital TV Over Cable

TELECOM
Legalized Extortion by Any Other Name
Telecom's Next Wave: Alliances

QUICKLY
Welcome To Broadband City
Low Power FM: The People's Choice

MEDIA POLICY

MEDIA REFORM AT A CROSSROADS
[Commentary] Congresswoman Diane Waston believes that we are standing at a=
=20
crossroads to the future of US media. Will we allow a powerful media lobby=
=20
in Washington to continue to encourage consolidation of ownership, or will=
=20
Americans rise up to demand a media system that fosters more local, diverse=
=20
and democratic media. Today, decades of irresponsible deregulation in=20
telecommunication policy has created great discontent among consumers who=20
are angry at the lack of choices among an extremely concentrated media=20
market. Five giant media conglomerates -- Viacom/CBS, GE/NBCUniversal,=20
Disney/ABC, News Corp./FOX, and Time Warner -- control approximately a 75%=
=20
share of broadcast and cable prime-time viewing.When big media get larger,=
=20
and the race for audiences turns to the lowest denominator in trash=20
programming as an appeal to the broadest possible audience, these=20
conglomerates move further away from quality programming and the principles=
=20
of diversity, localism, and competition, which is crucial to serving the=20
public interest. Recently, Representative Maurice Hinchey and Rep Watson=20
introduced H.R. 4069, the Media Ownership Reform Act of 2004, which seeks=20
to undo the massive consolidation of the media that has been ongoing for=20
nearly 20 years, and writing into statute precise limitations to a=20
company's ability to own and operate media outlets in a single market. The=
=20
bill would restore the Fairness Doctrine, reinstate a national cap on=20
ownership of radio stations, and lower the number of radio stations one=20
company can own in a local market. It would also keep in place the current=
=20
cross ownership rules regarding newspaper and broadcast ownership, local TV=
=20
ownership rules, and prohibit one company from owning a TV station and a=20
cable system in the same local market. The bill also sets up new media=20
ownership guidelines for the FCC to use in future rulings, especially in=20
gauging the level of diversity in the nation's media to measure how many=20
people are watching television programming. Reps Hinchey and Watson will be=
=20
reintroducing this important piece of legislation next year, and hope to=20
have your support as the struggle for media ownership reform continues.
[SOURCE: MediaChannel.org]
http://www.mediachannel.org/views/dissector/affalert260.shtml

STUDY REJECTS PRINT-BROADCAST COMBOS
A new study to be released today by Fordham University's McGannon=20
Communications Research Center concludes that mergers between TV stations=20
and newspapers in any size market should not be allowed. A Philadelphia=20
appeals court told the FCC to better calculate market concentration and=20
the new study purports to show how "far off the mark" the FCC's proposed=20
diversity index would be compared to the court's instruction on what it=20
should be looking for. According to the study, the FCC overestimated radio=
=20
and the Internet as alternative news sources "by a factor of four," and=20
underestimated daily newspapers' importance by a factor of 2.5.
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
http://www.broadcastingcable.com/article/CA456444?display=3DBreaking+New...
ferral=3DSUPP
(free access for Benton's Headlines subscribers)

700 MHZ ISSUES ARE PERPLEXING
How did anybody ever think the transition to digital TV broadcasting was=20
going to be easy? With slow consumer uptake of digital broadcasting=20
equipment, the transition could take decades, tieing up spectrum that could=
=20
be used for public safety and other uses. Cable operators say they'll carry=
=20
all available digital signals when there's consumer demand for it, while=20
broadcasters say demand will increase only if cable operators are required=
=20
to carry every digital signal, as well as analog signals. But why do=20
broadcasters kept winning policy battles that slow the transition? "In a=20
society where winning elections by less than 10% of the vote is=20
commonplace, telling more than 10% of the electorate that their analog TVs=
=20
won't work anymore probably isn't feasible," Jackson writes. He concludes:=
=20
"...it appears that some extraordinary measures will have to be taken for=20
public safety and wireless operators to have a shot at using this spectrum.=
=20
The encouraging note for both groups is that the potential economic and=20
social benefits that would come from clearing the 700 MHz spectrum warrant=
=20
such action. Just don't hold your breath waiting for it to happen."
[SOURCE: Telephony's Regulatory Insider, AUTHOR: Donny Jackson]
djackson( at )primediabusiness.com

U.S. SENATE TO WEIGH BILL TARGETING WEB SONG TRANSFER
After weeks of negotiations, the U.S. Senate could take action on Thursday=
=20
on the Inducing Infringement of Copyrights Act that would make it easier to=
=20
sue "peer-to-peer" networks like Kazaa and LimeWire that allow users to=20
copy music and movies over the Internet. The bill would hold liable anyone=
=20
who "induces" others to reproduce copyrighted material. The bill would give=
=20
a boost to recording companies and movie studios, which so far have been=20
unable to shut down the online file-trading networks in court. A new=20
version of the bill released after months of negotiation contains=20
carve-outs for venture-capital investors, advertisers, reviewers, and=20
nonprofits. Still, the new version seemed to win few converts. "Although=20
this new draft may appear on the surface to be more friendly to technology=
=20
and innovation than were past drafts, in fact it is not," said Gigi Sohn,=20
president of the nonprofit policy group Public Knowledge. "The stakes here=
=20
are chilling what drives America's economy, which is technical innovation,=
=20
both in the marketplace of products and the marketplace of ideas," said=20
Adam Eisgrau, executive director of P2P United, a trade group for several=20
peer-to-peer networks.
[SOURCE: Reuters, AUTHOR: Andy Sullivan]
http://www.reuters.com/newsArticle.jhtml?type=3DinternetNews&storyID=3D6...
13
Public Knowledge is organizing an effort to oppose the Induce bill, S 2560.=
=20
The group warns that the bill could do away with the court ruling that=20
allowed the VCR, the
iPod, computer hard drives, and even the Internet, to be developed and to=20
flourish. The legislation would give the music and movie companies control=
=20
over the kinds of products and services consumers will be able to use to=20
listen to music.
See http://www.publicknowledge.org/take-action/induce

CBS FIRES UP DESIRES FOR STRICT FEDERAL NANNY
[Commentary] The Kaiser Family Foundation got a lot of press last week when=
=20
it released a survey that found parents are concerned with the amount of=20
sex and violence on TV. Vicky Rideout, director of Kaiser's Program for the=
=20
Study of Entertainment Media and Health, said the survey was intended to be=
=20
quantitative, not qualitative. She described it as "a broad tool that can=20
lead to suggested legislation or policy." McFadden expresses fear of that=20
"broad tool" because it could end up punishing the evening news for images=
=20
of abused Abu Ghraib prisoners when trying to shield youngsters from=20
brutal, shoot-'em-up cartoons. The Center for Creative Voices in Media's=20
Jonathan Rintels doesn't defend sex and violence on TV. But he is upset=20
about the chilling effects of an ill-defined outcry. "Unfortunately,=20
Congress and the FCC have taken what ought to be the last resort =97=20
government regulation of speech =97 and made it the first resort," said=20
Rintels. "What we're saying is: Let's look at all the other alternatives to=
=20
dealing with sex and violence on TV first instead of making the government=
=20
a national nanny." The alternatives: 1) Getting the FCC to clearly define=20
prohibited words, terms and deeds. So far, the agency has declined to do=20
so. 2) Offering viewers so-called a la carte cable, which lets them choose=
=20
individual channels and reduce the risk of getting racier options packaged=
=20
with family fare. The a la carte option is opposed by the U.S. cable=20
industry and would require government intercession.
[SOURCE: The Seattle Times, AUTHOR: Kay McFadden]
http://seattletimes.nwsource.com/html/artsentertainment/2002045580_kay27...
l
Jonathan Rintels spoke about the Super Bowl half time show and the=20
resulting fine on The NewsHour on PBS. See a transcript at:
http://www.pbs.org/newshour/bb/media/july-dec04/fine_9-23.html

PUBLIC BROADCASTING

TO BBC'S RIVALS, 'AUNTIE' IS TOO BIG FOR ITS BRITCHES
What's the role of public broadcasting in a rapidly changing media=20
landscape? This is a question being asked all over the world, but=20
especially in England where the government is conducting a once-in-a-decade=
=20
review of the Royal Charter that sets the BBC's terms of operation and=20
funding. There's no question that the BBC's charter will be renewed, but=20
the government may mandate changes that will set the course of the BBC for=
=20
the next 10 years. Competitors complain that the BBC uses public funds to=20
compete with commercial broadcasters, which some say violates the BBC's=20
public-service mission. They argue that the BBC should produce and=20
broadcast only programming that commercial broadcasters can't or won't,=20
filling gaps in the market rather than producing mainstream TV fare.
A draft charter is expected in January.
[SOURCE: Wall Street Journal, AUTHOR: Marc Champion marc.champion( at )wsj.com,=
=20
Emily Nelson emily.nelson( at )wsj.com, Charles Goldsmith=20
charles.goldsmith( at )wsj.com ]
http://online.wsj.com/article/0,,SB109632206969429290,00.html?mod=3Dtoda...
s_page_one
(requires subscription)

MORPHING COMMERCIAL RADIO COULD ATTRACT PUBRADIO FANS
Neo-Radio, contemporary music without the hype. Progressive, left-leaning=20
radio talk shows. Classical music. All public radio formats, right? Now=20
commercial stations are moving into these areas, too. Neo-Radio and Air=20
America are just getting going and a commercial classic network is in the=20
making. Could they cut into public radio audiences? Or do they provide=20
opportunities for cross-promotion?
[SOURCE: Current, AUTHOR: Mike Janssen]
(http://www.current.org/)

PETITIONER ANGLES FOR TIME ON 7 MIDWESTERN STATIONS
A midwestern religious broadcaster has filed with the FCC trying to gain=20
time on if not the licenses of six public radio stations and one repeater=20
operated by a pubcaster. The religious broadcaster, Martin Hensley. claims=
=20
some of the stations provide no local service or fall short of the minimum=
=20
weekly operating schedule the FCC requires of noncommercial stations.=20
Hensley wants to restrict the schools to broadcasting during school hours=20
[since students never listen to the radio after school] and fill the=20
remainder of time with news, music and sports and to address issues like=20
depression, drunken driving and teen pregnancy.
[SOURCE: Current, AUTHOR: Mike Janssen]
(http://www.current.org/)

CABLE

TIME WARNER, COMCAST WEIGH BID FOR ADELPHIA
Look for more consolidation of ownership in the cable industry. With the=20
nation's 5th-largest cable operator, Adelphia, up for sale, the two largest=
=20
operators, Comcast and Time Warner, are expected to make a joint bid for=20
Adelphia's holdings in 31 states. Public interest advocates are worried=20
about the concentration of ownership power -- especially at Comcast. The=20
Philadelphia-based company already reaches more than 21 million subscribers=
=20
and close to one in five U.S. households; it also is the country's largest=
=20
provider of broadband Internet access. Critics say Comcast already wields=20
too much power over the Internet and what viewers see on TV. "In any=20
democratic society, you don't want a single entity to have too much power=20
to bless one channel over another," says Harold Feld, associate director of=
=20
Media Access Project, a Washington public-interest law firm.
[SOURCE: Wall Street Journal, AUTHOR: Peter Grant peter.grant( at )wsj.com &=20
James Bandler james.bandler( at )wsj.com]
http://online.wsj.com/article/0,,SB109629633422928793,00.html?mod=3Dtoda...
s_marketplace
(requires subscription)
See also --
WP: http://www.washingtonpost.com/wp-dyn/articles/A55560-2004Sep27.html
USAToday:=20
http://www.usatoday.com/printedition/money/20040928/1b_adelphia28.art.htm
LATimes:=20
http://www.latimes.com/business/printedition/la-fi-adelphia28sep28,1,642...
.story?coll=3Dla-headlines-pe-business

DIGITAL TV OVER CABLE
The number of local TV markets in which consumers can now receive a package=
=20
of HDTV services from their cable operator has grown to 177 (out of 210),=20
including all of the top 100 Designated Market Areas, the National Cable &=
=20
Telecommunications Association (NCTA) said today in releasing results of a=
=20
recent survey of its member companies. NCTA also reported that the number=20
of local digital broadcast stations being carried by cable systems has=20
increased to 454, up from 304 in December 2003, growth of nearly 50%.=20
Consumer availability of HDTV via cable has skyrocketed since its=20
commercial introduction by cable operators in 2002. Of the 108 million U.S.=
=20
TV households today, 90 million are now passed by a cable system that=20
offers a package of HDTV programming, NCTA said, an increase of more than=20
28% over the 70 million mark since last December. In addition, 17 cable=20
networks now offer HD programming during some or all of their network=20
schedules, in broad genres including movies, sports and general interest.=20
The NCTA data reflects activity through mid-September 2004.
[SOURCE: National Cable & Telecommunications Association Press Release]
http://www.ncta.com/press/press.cfm?PRid=3D536&showArticles=3Dok

TELECOM

LEGALIZED EXTORTION BY ANY OTHER NAME
[Commentary] McCullagh says the Senate Commerce Committee's approval of the=
=20
Wireless 411 Privacy Act bill was "an exercise in frivolity and futility."=
=20
So why did it take the trouble? First, it is great to grandstand as a=20
protector of consumer privacy. But McCullagh goes on to suggest something a=
=20
bit more sinister. "Politicians will enact legislation or press for=20
regulation that they suspect will cause problems," says Don Boudreaux,=20
chairman of the economics department at George Mason University. "They know=
=20
that the people who are affected by the problems will come to them, begging=
=20
that the problem be solved and contributing to their re-election efforts.=20
Economists have a term for it: rent extraction...It's particularly likely=20
when the issue is one that can be portrayed in sound bites and very quick=20
headlines as something good. 'I voted to require opt-in'--that sounds good.=
=20
It doesn't sound suspicious on its face." Boudreaux and other scholars,=20
including Northwestern University's Fred McChesney, have documented how=20
politicians have painstakingly made some areas of the law--like the tax=20
code--especially convoluted and then have proceeded to rewrite portions=20
every year or two. The repeated tinkering and high stakes, the argument=20
goes, guarantee a constant flow of political tribute.
[SOURCE: C-Net|News.com, AUTHOR: Declan McCullagh]
http://news.com.com/2010-1028-5381536.html

TELECOM'S NEXT WAVE: ALLIANCES
Consumer spending on bundled communications services, which includes=20
wireline, wireless, Internet, and cable or satellite TV, has been climbing.=
=20
Telecos are competing fiercely with other local wireline, wireless, and=20
cable-service providers, leading to losses in local-access lines. Looking=20
ahead, competition will only grow with the launch of Internet telephony and=
=20
the expansion of wireless broadband networks. But unlike earlier periods,=20
when telcos ratcheted up capital spending to boost growth and gain customer=
=20
loyalty, partnerships are now the vogue as carriers try to reduce debt.=20
What makes the partnerships appealing is that they let one company provide=
=20
new services to customers, while allowing its partner make use of excess=20
capacity to become more efficient.
[SOURCE: BusinessWeek, AUTHOR: Todd Rosenbluth]
http://www.businessweek.com/investor/content/sep2004/pi20040924_0182_pi0...
tm

QUICKLY

WELCOME TO BROADBAND CITY
Philadelphia is not alone in wanting to offer city-wide high-speed Internet=
=20
access. By sending signals over the airwaves from inexpensive antennas=20
mounted on light poles, small-town mayors and local entrepreneurs around=20
the country are already providing low-cost broadband. Corpus Christi and=20
Houston are also moving forward on Wi-Fi networks. Not surprisingly, cable=
=20
and telcos aren't happy about their new rivals -- and lobbying hard to halt=
=20
the trend. The muni wireless network is an unexpected twist in what had=20
been a two-way race to sign up broadband subscribers. By creating "a third=
=20
pipeline," muni networks should lower prices and speed the spread of=20
broadband, says Michael Calabrese, vice-president at the New America=20
Foundation, a Washington think tank.
[SOURCE: BusinessWeek, AUTHOR: Catherine Yang & Heather Green ]
http://www.businessweek.com/magazine/content/04_40/b3902057_mz011.htm

LOW POWER FM: THE PEOPLE'S CHOICE
An hour-long documentary on the story of how low power FM radio is bringing=
=20
diverse peoples closer together and giving new life to declining=20
communities, new strength to neighborhoods and new voices in the=20
marketplace of ideas. Meet the people who helped launch low power FM radio=
=20
and see how the LPFM radio movement withstood the rigors of Capitol Hill=20
and special interest attacks.
[SOURCE: United Church of Christ]
http://www.ucc.org/ocinc/lpfmradio/peopleschoice.htmhttp://www.ucc.org/oci=
nc/lpfmradio/peopleschoice.htm
--------------------------------------------------------------
Communications-related Headlines is a free online news summary service=20
provided by the Benton Foundation (www.benton.org). Posted Monday through=20
Friday, this service provides updates on important industry developments,=20
policy issues, and other related news events. While the summaries are=20
factually accurate, their often informal tone does not always represent the=
=20
tone of the original articles. Headlines are compiled by Kevin Taglang=20
(headlines( at )benton.org) -- we welcome your comments.
--------------------------------------------------------------