Benton RSS Feed

Two big events in Washington today. The House Subcommittee on=20
Telecommunications and the Internet will hold a hearing on competition in=20
the communications marketplace and the FCC is holding the Wireless=20
Broadband Forum. For these and other upcoming media policy events, see=20
http://www.benton.org/calendar.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.

TELEVISION & RADIO
FCC to Audit Broadcasters This Month Under New EEO Rules
Congress Cans a la Carte
The Political Endurance Test
Barton: Cable Indecency Law Coming
Stations Seek Preemption Assurance
Center for Rural Strategies Opposes "Amish in the City"

TELECOM
Rural Telephone Executives Lobby Capitol Hill
SBC Faces Possibility of Strike As Union Gives 24-Hour Notice

MEDIA & POLITICS
Bush's Site Neck and Neck with Kerry's in Traffic Race

TELEVISION & RADIO

FCC TO AUDIT BROADCASTERS THIS MONTH UNDER NEW EEO RULES
Within several weeks, the FCC will send audit letters to about 550 radio=20
stations, 70 TV stations and 70 multichannel video program distributor=20
(MVPD) units, including 5% of cable operators, said Lewis Pulley, Assistant=
=20
Chief of the Policy Division in the FCC=92s Media Bureau, at a National=20
Association of Broadcasters Human Resource Managers meeting Tuesday. The=20
action comes after criticism from the United Church of Christ and other=20
supporters of equal employment opportunity rules. "Given that the new=20
broadcast EEO rules did not go into effect until March 10, 2003, audits=20
conducted in calender year 2003 would not have been productive as=20
broadcasters would not have had ample time to comply and document their=20
compliance with the new regulations,=94 FCC Chairman Powell said. By giving=
=20
broadcasters a year to document
compliance, as broadcast licenses are renewed, they can prepare public file=
=20
reports to the Commission for review, said Chairman Powell. In addition,=20
under the new rules, broadcasters have to adopt supplemental recruitment=20
initiatives over 2 years. It would have been =93extremely difficult=94 for=
=20
broadcasters to comply given the short period
between the effective date of the rules and the audits had they been=20
conducted last year, Chairman Powell said: =93Indeed, for this reason, some=
=20
claim that a truly meaningful audit cannot be conducted until the initial=20
2-year period has passed.=94
[SOURCE: Communications Daily, AUTHOR: Tania Panczyk-Collins]
(Not available online)

CONGRESS CANS A LA CARTE
Rep Nathan Deal (R-GA) announced Tuesday that he is withdrawing the a la=20
carte amendment he planned to offer when the House Commerce Committee votes=
=20
on satellite TV legislation next month. Instead, House Commerce Committee=20
Chairman Joe Barton (R-TX) and House Telecommunications Subcommittee=20
Chairman Fred Upton (R-MI) will ask the FCC to study the feasibility of an=
=20
a la carte requirement. Rep Barton told the American Cable Association that=
=20
there was not enough support for a la carte yet.
[SOURCE: Broadcasting&Cable, AUTHOR: Bill McConnell]
http://www.broadcastingcable.com/article/CA419133?display=3DBreaking+News
(requires subscription)
Multichannel news:=20
http://www.multichannel.com/article/CA419079?display=3DBreaking+News

THE POLITICAL ENDURANCE TEST
Why, many critics ask, should people have to pay for offensive fare they=20
don't want? Why not let customers buy a =93family-friendly tier=94 of=20
programming or, better yet, customize their own family-friendly tier by=20
choosing a set number of channels on their own via the a la carte model?=20
=93Some networks would not survive in that environment,=94 says Jill=
Luckett,=20
vice president of program network policy at the National Cable &=20
Telecommunications Association. Creating a small tier of 10 or so=20
"family-friendly" channels would mean less viewers for those stations, the=
=20
cable industry argues, and advertisers would demand lower rates. That would=
=20
eventually put upward pressure on license fees, which would trickle down to=
=20
consumers. =93I just don't buy the economic-model argument,=94 says Laura=20
Mahaney, director of corporate and entertainment affairs of the Parents=20
Television Council. Rather than reduce advertising dollars for programmers,=
=20
Mahaney says niche tiers of programming (in which viewers would pay a flat=
=20
rate for a certain number of channels from an a la carte menu) could give=20
advertisers far more targeted information about viewers =97 raising what=
they=20
pay on a per-subscriber basis. It is unclear whether a la carte or=20
mini-tier legislation will become a reality at some point.
[SOURCE: Multichannel News, AUTHOR: Michael Grebb]
http://www.multichannel.com/article/CA417514?display=3DSupplement&promoc...
=3DSUPP
(requires subscription)

BARTON: CABLE INDECENCY LAW COMING
House Commerce Committee Chairman Joe Barton (R-TX) is again saying=20
publicly that he expects that the cable industry will need to comply with=20
broadcast-indecency rules in the near future. =93It=92s not something we=92r=
e=20
going to do right away, but it=92s an issue that=92s time has come, in my=20
opinion,=94 Rep Barton said in comments Tuesday to the American Cable=20
Association. =93I think we=92re approaching the time where whatever we apply=
to=20
the broadcasters in some way -- voluntarily or involuntarily -- is going to=
=20
be applied to cable. I know that causes some of you folks heartburn, and it=
=20
probably should. But you deserve to hear the truth from the chairman of the=
=20
committee.=94 Rep Barton has made the point that because cable and satellite=
=20
are viewed in more than 90 percent of U.S. homes, =93most Americans don't=20
differentiate between over-the-air and cable or satellite.=94
[SOURCE: Multichannel News, AUTHOR: Ted Hearn]
http://www.multichannel.com/article/CA419180?display=3DBreaking+News
(requires subscription)

STATIONS SEEK PREEMPTION ASSURANCE
The Network Affiliated Stations Alliance believes that affiliation=20
agreements of all big networks but CBS "impermissibly prevent and hinder=20
affiliates from exercising discretion expressly protected" by FCC rules.=20
The television stations are seeking protection of the right-to-reject rule.=
=20
The stations say affiliates they are motivated by their desire to turn down=
=20
shows that would be "unsatisfactory or unsuitable" to local audiences or=20
when an affiliate wants to substitute programming of greater local or=20
national importance. The FCC is likely to decide on a petition from the=20
group in coming months and NASA has been lobbying for support in Congress.
[SOURCE: Broadcasting&Cable, AUTHOR: Bill McConnell]
http://www.broadcastingcable.com/article/CA419221?display=3DBreaking+News
(requires subscription)

CENTER FOR RURAL STRATEGIES OPPOSES "AMISH IN THE CITY"
Advocates for rural America today launched a newspaper advertising campaign=
=20
taking on CBS President Leslie Moovnes and UPN television over a proposed=20
reality show, =93Amish in the City.=94 The Center for Rural Strategies, a=
small=20
nonprofit organization based in eastern Kentucky, is running a quarter-page=
=20
advertisement on the op/ed page of Wednesday Philadelphia Inquirer. The ad=
=20
criticizes Moonves and UPN for attempting to make corporate profits by=20
ridiculing Amish youth and rural Americans. The proposed show would=20
transplant Amish teens to a major metropolitan area, place temptation in=20
their path, and tape the teens=92 ensuing struggles of faith. =93What kind=
of=20
person could relish millions of viewers snickering as vulnerable Amish=20
youth are sent up by TV producers for a humiliating up-close and personal=20
fall from grace?=94 the ad asks. Last year, Rural Strategies helped organize=
=20
a national campaign to stop CBS Television from producing a reality show=20
based on =93The Beverly Hillbillies,=94 in which a rural family=92s staged=
=20
encounters with southern California affluence and pop culture would have=20
served as the plotline. CBS is owned by Viacom, which also owns UPN. =93Thes=
e=20
so-called reality show concepts demonstrate how out of touch media giants=20
like Viacom are from real issues in the United States,=94 said Dee Davis,=20
president of the Center for Rural Strategies. =93To them, rural Americans=20
have stopped being real people and become a laugh track that=92s only there=
=20
to generate corporate profits. Any indignity, even testing the religious=20
faith of young people, is just fine as long as it brings in advertising=20
revenue. Well, Viacom is wrong, again.=94 Rural America comprises 80 percent=
=20
of the land area in the United States and is home to 55 million people, or=
=20
20 percent of the U.S. population.
[SOURCE: Center for Rural Strategies Press Release]
http://www.ruralstrategies.org/amish/5.19.release.html

TELECOM

RURAL TELEPHONE EXECUTIVES LOBBY CAPITOL HILL
Members of the Organization for the Promotion and Advancement of Small=20
Telecommunications Companies (OPASTCO) are in Washington, DC this week=20
asking Congress to reform universal service. There are four points the=20
organization wants to deliver: 1) Congress should voice =93strong=20
disapproval=94 of the recommendation by the Federal-State Joint Board to=20
restrict universal service funding to one =93primary=94 phone line per=20
customer. 2) Congress should urge the FCC to adopt a universal service=20
funding methodology for new competing telecos that=92s based on their own=20
costs rather than the costs of the incumbents they compete against. 3) The=
=20
Telecom Act should be amended to assess both intrastate and interstate=20
revenue for contributions to the universal service fund; only interstate=20
revenue is assessed now. 4) The base of contributors should be broadened to=
=20
include =93all facilities-based broadband Internet access providers,=94=20
including cable modem and other broadband platforms. While in town, the=20
representatives of small, independently owned local exchange carriers will=
=20
probably also do some shopping and maybe see a show.
[SOURCE: Communications Daily, AUTHOR: Edie Herman]
(Not available online)

SBC FACES POSSIBILITY OF STRIKE AS UNION GIVES 24-HOUR NOTICE
102,000 members of the Communications Workers of America may strike against=
=20
SBC Communications as early as today at 1pm (eastern). Over the last three=
=20
years, SBC has eliminated 29,000 union jobs from its core local-phone=20
business while not allowing union members to take jobs in expanding growth=
=20
areas of the company's business such as digital subscriber lines (DSL);=20
long-distance; and Wi-Fi, which provide wireless Internet connections.
[SOURCE: Wall Street Journal, AUTHOR: Almar Latour almar.latour( at )wsj.com ]
http://online.wsj.com/article/0,,SB108492424805815246,00.html?mod=3Dtoda...
s_personal_journal
(requires subscription)
SJMerc:=20
http://www.mercurynews.com/mld/mercurynews/business/technology/8701598.htm

MEDIA & POLITICS

BUSH'S SITE NECK AND NECK WITH KERRY'S IN TRAFFIC RACE
According to Nielsen/NetRatings, U.S. visitors to the Sen Kerry's campaign=
=20
Web site numbered 1.6 million last month, while President Bush's site=20
attracted 1.5 million visitors. Sen Kerry, according to Nielsen/NetRatings,=
=20
has a huge lead over President Bush in online advertising impressions, or=20
the number of times an online ad is viewed. In April, Sen Kerry's online=20
ads scored 52 million impressions to President Bush's paltry 5,000. But=20
figures for online ads sponsored by candidates' parties show Republican=20
efforts dwarfing those of Democrats, with 113 million impressions for=20
Republican National Committee-sponsored ads and 63,000 for ads sponsored by=
=20
the Democratic National Committee.
[SOURCE: C-Net|News.com, AUTHOR: Paul Festa]
http://news.com.com/2100-1028_3-5215121.html?tag=3Dnefd.hed
--------------------------------------------------------------

This week's policy events include Congressional hearings on competition in
the communications marketplace and the CAN-SPAM Act, as well as the FCC's
Wireless Broadband Forum. For more media policy events, see
http://www.benton.org/calendar.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. Headlines are compiled by
Kevin Taglang -- we welcome your comments.

TELEVISION & RADIO
FCC's Localism Task Force Public Hearing in Rapid City, South Dakota
More Money for Broadcast Networks
The Political Standard
Indecency Bill Prospects Dimming
Some A La Carte Calls Cite Net 'Porn'
Masses Tune Into HDTV
With Second Channel, FM Branches Out
NFCB Seeks Unit to Assist Native Radio

TELECOM
AT&T Is Rebuffed By Regional Bells On Arbitration
Ventures Aim to Cut Cost of Overseas Cell Calls to Pennies
Craig McCaw's Secret Plan
New Telephone Subscribership Report

FUNDING FOR INDEPENDENT PRODUCERS

TELEVISION & RADIO

FCC'S LOCALISM TASK FORCE PUBLIC HEARING IN RAPID CITY, SOUTH DAKOTA
The FCC's Localism Task Force will meet Wednesday evening May 26 in Rapid
City, South Dakota. The purpose of the hearing is to gather information
from consumers, industry, civic organizations, and others on broadcasters'
service to their local communities. An important focus of the hearing will
be to gather information and to conduct outreach for the ongoing nationwide
round of broadcast station license renewals. The designated speakers will
include representatives from consumer and advocacy groups as well as
broadcasters. The hearing format will enable members of the public to
participate via an "open microphone" session. Additional details regarding
the designated speakers, agenda, and hearing format will be announced shortly.
For additional information about the hearing or the Localism Task Force,
please visit the Task Force's website at http://www.fcc.gov/localism, or
contact the Task Force directly at 202-418-7777, or at
localism( at )fcc.gov. Press inquiries should be directed to Michelle Russo at
202-418-2358, or Meribeth McCarrick at 202-418-0654.
[SOURCE: FCC]
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DA-04-1380A1.doc

MORE MONEY FOR BROADCAST NETWORKS
This week, television broadcasters will introduce their 2004-5 prime-time
schedules and will be trying to charge more for ad time - even though
ratings for the 2003-4 season among viewers ages 18 to 49, the ones most
coveted by advertisers, are expected to decline about 6 percent from
2002-3. Forecasts call for an estimated revenue increase for the
broadcasters - ABC, CBS, Fox, NBC, UPN and WB - of 3 to 5%, to $9.6 billion
to $9.8 billion, from $9.3 billion sold in the upfront market in spring
2003 ahead of the 2003-4 season. By comparison, the $9.3 billion
represented an increase of 15 percent over the $8.1 billion sold in spring
2002 ahead of the 2002-3 season. "Cable TV is going to make gains year to
year because the dollars are following the eyeballs," said Andy Donchin,
executive vice president and director for national broadcast at Carat North
America in New York, referring to cable's rising viewership because of
popular series like "Monk" on USA and "Punk'd" on MTV. "But I and my fellow
buyers still see a great inherent value in broadcast network television,"
said Mr. Donchin. "It still brings a lot to the table for us." Broadcast TV
is still the place to find very large audiences. And the advertisers that
are likely to increase their spending this year are the ones who favor TV:
"big box" retailers like Lowe's, Kohl's, Wal-Mart, Target, fast food,
movies, prescription drugs and telecommunications.
[SOURCE: New York Times, AUTHOR: Stuart Elliott]
http://www.nytimes.com/2004/05/17/business/media/17adcol.html
(requires registration)
WSJ: For Big Marketers Like AmEx, TV Ads Lose Starring Role
http://online.wsj.com/article/0,,SB108474859657412894,00.html?mod=todays...
(requires subscription)

THE POLITICAL STANDARD
The Alliance for Better Campaigns is a public interest group that seeks to
improve elections by promoting campaigns in which the most useful
information reaches the greatest number of citizens in the most engaging
ways. ABC believes that broadcasters can and must use the publicly-owned
airwaves to revitalize our democracy and is working to put meaning back
into broadcasters' statutory obligation to serve the public interest. ABC
publishes an occasional magazine, The Political Standard, and this month's
issue contains a number of stories of interest for media reformers:
* Public Interest, Public Airwaves Coalition Kicks Off National Campaign at
Broadcasters' Trade Show in Vegas
Calling current local news coverage of politics and civic affairs
"pathetic" and "pitiful," Federal Communications Commissioners Michael
Copps and Jonathan Adelstein endorsed a proposal by the newly formed Public
Interest, Public Airwaves Coalition (PIPAC) that calls for stronger public
interest obligations for broadcasters.
* Network News Coverage of '04 Primaries Falls Short, Study Finds
According to a new study by the Alliance for Better Campaigns, the four
major networks (ABC, CBS, NBC and Fox) devoted just eight percent of their
news hole to election coverage in the two weeks leading up to the Super
Tuesday primaries.
* Station Groups Make Plans for 2004 Election Coverage
Five broadcast companies have pledged to provide air time for candidates on
their television stations in the fall campaign.
* On Broadcast Television, A Failure To Communicate
A message from the groups executive director, Meredith McGehee
* Why Hearst-Argyle Television Believes in Political Coverage
A piece by Candy Altman, Vice President for News at Hearst-Argyle Television
* Coalition Proposes New Guidelines for Civic Discourse As FCC Considers
Rules for Digital Broadcasters
[SOURCE: Alliance for Better Campaigns]
http://www.bettercampaigns.org/standard/display.php?IssueID=44

INDECENCY BILL PROSPECTS DIMMING
With just over a month of working days left in the current Congress,
prospects are dimming for passing legislation aimed at curbing indecent
broadcast content. The main hurdle appears to be in the Senate where John
Sununu (R-NH) will hold up the bill unto provisions to block the FCC's
relaxation of media ownership rules are removed. The odds on the bill are
now 50/50 as the memory of Janet Jackson slowing melts away.
[SOURCE: Broadcasting&Cable, AUTHOR: Bill McConnell]
http://www.broadcastingcable.com/article/CA417967?display=Breaking+News
(requires subscription)

SOME A LA CARTE CALLS CITE NET 'PORN'
"On cable television, you've got programming that is, in essence, soft-core
pornography in the basic package, such as on MTV," says Janet M. LaRue,
chief counsel of Concerned Women for America, a 500,000-member organization
with a right-of-center agenda. Concerned Women are leading a fight in
Congress to introduce a la carte pricing of pay-TV services, allowing
consumers to pay only for the channels they want. Consumer groups are also
part of the effort, arguing that it could lower cable bills. But the cable
industry does not like the plan and is fighting against it. "Cable
television is sold as a bundle of channels, which offers the best value to
consumers," National Cable & Telecommunications Association Brian Dietz
spokesman said. "Any move toward an a la carte mandate would only result in
less choice and higher prices for consumers."
[SOURCE: Multichannel News, AUTHOR: Ted Hearn]
http://www.multichannel.com/article/CA417950?display=Top+Stories
(requires subscription)

MASSES TUNE INTO HDTV
High definition television offers prettier pictures and better sound. And
people are starting to buy up HDTV sets. According to the Consumer
Electronics Association, manufacturer-to-dealer digital TV sales for the
first quarter of 2004 totaled 1.39 million, a 104% climb over the same
period in 2003. By 2007, nearly one-third of American households will be
tuning in to HD programs. "Two or three years ago, people were calling HDTV
a failure," says Gary Shapiro, chief executive of the CEA. Today, Shapiro
says, "I have very little worries." The price of HDTV sets are falling
10-30% per year and more HDTV content is available: As of late February,
CBS was airing 27 hours a week of its usual programming in HD, not counting
specials. NBC and ABC were broadcasting 21 hours and 13 hours of usual
programming, respectively.
[SOURCE: USAToday, AUTHOR:Edward C. Baig]
http://www.usatoday.com/usatonline/20040517/6206905s.htm

WITH SECOND CHANNEL, FM BRANCHES OUT
As the FCC considers rule for digital radio, stations are beginning to
think about how they will use the technology to serve their communities.
Digital radio technology allows broadcasters to split one FM channel into
two. Stations' plans to use the second channel include more musical
programming, re-airing local programming at different times, running longer
versions of interviews used in shows, serving foreign-language audiences
and neighborhood-targeted programming for young people. National Public
Radio pioneered the technology under the name Tomorrow Radio and is helping
to introduce it to both stations and listeners. Assuming the FCC approves
the signal split, NPR will provide two free streams for stations: Classical
Public Radio Network and a news/talk stream still in development with help
from Public Radio Program Directors Association.
[SOURCE: Current, AUTHOR: Mike Janssen]
(http://www.current.org/)

NFCB SEEKS UNIT TO ASSIST NATIVE RADIO
The National Federation of Community Broadcasters has asked the Corporation
for Public Broadcasting for more than $1 million to establish a Center for
Native Radio to seek out nontraditional funding sources for the
approximately 30 radio stations serving Native American audiences. The
center would help very small radio stations with grant applications and
technical support. Traditional funding models for public radio stations --
membership drives and underwriting campaigns -- simply don't work at
reservation-based stations, said Carol Pierson, president of NFCB,
explaining the need for the center. The populations are too small and too
rural, businesses and industry are lacking, unemployment is usually rampant
and the more educated people tend to move away.
[SOURCE: Current, AUTHOR: Geneva Colins]
http://www.current.org/minority/minority0408native.shtml

TELECOM

AT&T IS REBUFFED BY REGIONAL BELLS ON ARBITRATION
On Friday, AT&T Chief Executive David Dorman said the company is
"frustrated by the lack of progress in negotiations to date," and called
for the use of arbitration to break the impasse with Baby Bells. Parties to
arbitration must abide by the final agreement. But the Bells have rebuffed
the proposal. Mark Cooper of the Consumer Federation of America backed
AT&T's call for arbitration. The group is concerned that higher wholesale
rates could raise prices for consumers or price Bell competitors out of the
market. "AT&T has realized that the Bells are not interested in a
reasonable solution and has upped the ante by proposing binding
arbitration," Mr. Cooper said. "This approach can provide the needed
breakthrough that levels the playing field among competitors and ensures
long-term competition to the benefit of consumers."
[SOURCE: Wall Street Journal, AUTHOR: Mark Wigfield
mark.wigfield( at )dowjones.com ]
http://online.wsj.com/article/0,,SB108458420969712296,00.html?mod=todays...
(requires subscription)

VENTURES AIM TO CUT COST OF OVERSEAS CELL CALLS TO PENNIES
Internet telephone services are coming to cell phones now and could greatly
reduce the costs of making wireless international calls. "It puts the
cellphone providers under attack for the first time," said Rick Scherle,
vice president for marketing at i2Telecom. "The land-line guys have been
wrestling this technology," he said. "We're telling the cellphone guys that
you have to grapple with it now, too." Cellphone calls to London, for
example, are usually $1.75/minute. Using InternetTalker, a cellphone user
would pay just the price of a local call plus three cents per minute.
[SOURCE: New York Times, AUTHOR: Ken Belson & Matt Richtel]
http://www.nytimes.com/2004/05/17/business/17voip.html
(requires registration)

CRAIG MCCAW'S SECRET PLAN
What's Craig McCaw up to? This is the talk of the telecom industry. The man
who put together the first nationwide cellular company -- and sold it to
AT&T for $11.5 billion -- is now buying companies in the wireless broadband
sector. Over the next two years, the costs of wireless broadband are
expected to drop to the point where it can be competitive -- anyplace in
the country -- with traditional wired service from cable and telephone
companies. With the radio licenses he's purchased, Mr McCaw could offer
coast-to-coast Net service at speeds roughly the same as today's broadband.
Insiders say he may soon be offering wireless broadband Internet access
with local and long distance phone service bundled in for $40-$50/month --
a similar bundle from a telephone company costs consumers $100/month now.
[SOURCE: BusinessWeek, AUTHOR: Andrew Park]
http://www.businessweek.com/magazine/content/04_21/b3884110_mz063.htm

NEW TELEPHONE SUBSCRIBERSHIP REPORT
On Friday, the FCC released its latest report on telephone subscribership
levels in the United States, showing that approximately 94.7% of all
households had telephone service. The report presents subscribership
statistics based on the Current Population Survey (CPS) conducted by the
Census Bureau in November 2003. The report also shows subscribership
levels by state, income level, race, age, household size, and employment
status. Highlights include: 1) The telephone penetration rate was 79.4% for
households with annual incomes below $5,000, while the rate for households
with incomes over $75,000 was 98.4%. 2) By state, the penetration rates
ranged from a low of 89.7% in Arkansas to a high of 98.0% in Maine. 3)
Households headed by whites had a penetration rate of 95.5%, while those
headed by blacks had a rate of 89.7% and those headed by Hispanics had a
rate of 90.5%. 4) By age, penetration rates ranged from 86.5% for
households headed by a person under 25 to 97.0% for households headed by a
person over 70. 5) Households with one person had a penetration rate of
91.7%, compared to a rate of 96.2% for households with four or five
persons. 6)The penetration rate for unemployed adults was 92.2%, while the
rate for employed adults was 95.9%.
This report is updated three times a year and is available online from the
FCC-State Link Internet site at http://www.fcc.gov/wcb/iatd/stats.html. For
more information contact Alexander Belinfante at (202) 418-0944
[SOURCE: FCC]
(http://www.fcc.gov)

FUNDING FOR INDEPENDENT PRODUCERS

LOCAL INDEPENDENTS COLLABORATING WITH STATIONS (LInCS) FUND provides
incentive or matching moneys ($10,000-$75,000) to partnerships between
public television stations and independent producers. Single shows in any
genre (including documentary, drama, animation or innovative combinations)
will be considered. Projects may be in any stage of development. Deadline
for applications is May 26. For additional information email
Elizabeth_Meyer( at )itvs.org or call 415-356-8383 x270.
[SOURCE: Independent Television Service]
http://www.itvs.org/producers/funding.html
--------------------------------------------------------------

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

BROADCASTING
NBC Universal Is Born
One Man's Campaign To Rid Radio of Smut Is Finally Paying Off
FCC May Let Wi-Fi Go Between TV Signals
FCC to Study Who Is Broadcast-Only
Public Radio Stations Begin Digital Transition

TELECOMMUNICATIONS
Telecommunications Policy Review: A View from Industry
Doubts Linger on Bells' Success
AT&T Wireless Has Four Times as Many Customer Complaints as Verizon

COPYRIGHT
H.R. 107, The Digital Media Consumers' Rights Act of 2003
Hatch Slams Dish Divide

INTERNET GOVERNANCE
Global Forum on Internet Governance
The Complicated World of ICANN =AD Part One

QUICKLY
Advertisers Bid, You Click, They Pay
Cell-Phone Camera Snoop Ban Advances in Congress
Media Literacy Grant to Girls Inc
Job Openings

BROADCASTING

NBC UNIVERSAL IS BORN
It is official. The $5.4 billion NBC-Vivendi Universal merger -- into NBC=20
Universal -- was completed Wednesday. The new company comprises the NBC TV=
=20
Network, the Universal Film Studio, an array of news and entertainment=20
networks, including MSNBC, CNBC, USA, Sci-Fi, Bravo and Telemundo, as well=
=20
as 29 owned and operated local TV stations and a theme parks division. Bob=
=20
Wright will head the new company as chairman and CEO and retain his title=20
as vice chairman of parent company General Electric. Expected 2005 revenues=
=20
for the new company are $15 million. GE owns 80% of the new company;=20
Vivendi Universal owns 20%.
[SOURCE: Broadcasting&Cable, AUTHOR: Steve McClellan & John Eggerton]
http://www.broadcastingcable.com/article/CA416880?display=3DBreaking+News
(requires subscription)
WP: http://www.washingtonpost.com/wp-dyn/articles/A22433-2004May12.html
USAToday: NBC signs long-term deals with stalwarts [Dick Wolf & Tom Brokaw]
http://www.usatoday.com/usatonline/20040513/6198492s.htm
LATimes:=20
http://www.latimes.com/business/printedition/la-fi-nbc13may13,1,841899.s...
?coll=3Dla-headlines-pe-business

ONE MAN'S CAMPAIGN TO RID RADIO OF SMUT IS FINALLY PAYING OFF
A look at David Smith's crusade against Mancow's Morning Madhouse, a=20
morning drive radio program out of Chicago. Since 1999, Mr. Smith has sent=
=20
the FCC more than 70 complaints about Mancow's humor which he believes is=20
indecent. They have resulted in $42,000 in fines that Erich "Mancow"=20
Muller's employer insists he pay. And so far, the FCC, behind in its work,=
=20
has only waded through his complaints up to July 2002. Half of them are=20
still pending. This article tracks how Mr. Smith has changed the Madcow=20
show, but also reveals how indecency enforcement works at the FCC -- and=20
how one particularly aggressive member of the community can have enormous=20
influence. Mancow's Morning Madhouse was the number 1 morning radio show in=
=20
Chicago. After Mr. Muller toned down his show, it has fallen to #4. And Mr.=
=20
Muller has sued Mr. Smith for harassment.
[SOURCE: Wall Street Journal, AUTHOR: Sarah McBride at=
sarah.mcbride( at )wsj.com]
http://online.wsj.com/article/0,,SB108441349000710328,00.html?mod=3Dtoda...
s_page_one
(requires subscription)

FCC MAY LET WI-FI GO BETWEEN TV SIGNALS
The FCC is expected to propose rules today that would allow unlicensed=20
wireless services to use vacant airwaves between TV stations as long as the=
=20
wireless services do not cause interference. Providers and equipment makers=
=20
can't wait to start using the TV spectrum, which is in lower-frequency=20
bands that let signals travel farther and better penetrate buildings and=20
foliage. That means more seamless service -- and lower costs, because fewer=
=20
antennas are needed. ''This (spectrum) is beachfront property,'' says=20
Peter Pitsch, communications policy director for Intel, a Wi-Fi chip maker.=
=20
''In rural areas where the nearest broadcaster is 100 miles away, you could=
=20
crank the power up and provide very low-cost wireless broadband service.=20
The National Association of Broadcasters is warning of interference. But=20
Michael Calabrese of the New American Foundation, which promotes=20
competition, says interference fears are a smokescreen. Broadcasters, he=20
says, are eyeing the vacant spectrum to offer new subscription TV or other=
=20
services. The NAB denies its members are trying to make money.
[SOURCE: USAToday, AUTHOR: Paul Davidson]
http://www.usatoday.com/usatonline/20040513/6198493s.htm
For more on today's FCC meeting, see
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-246980A1.doc

FCC TO STUDY WHO IS BROADCAST-ONLY
As part of the plan to speed the transition to digital-only broadcasting,=20
the FCC is planning to release a Public Notice soon seeking information on=
=20
the number of TV households that rely solely on free, over-the-air=20
broadcasting. =93Particularly, we=92d like to know more of the facts about=
who=20
these people are, what the demographics are, where they are, all of this=20
stuff,=94 said FCC Media Bureau Chief Kenneth Ferree at a New America=20
Foundation event. Currently, the Commission has only a lot of =93informed=20
guesswork=94 about the 15% of so-called =93granny=94 TV watchers who won=92t=
update=20
analog sets. Han Hege, Director of Medienanstalt Berlin-Brandenburg, told=20
luncheon attendees how Berlin used consumer subsidies to accomplish a=20
9-month DTV transition. =93We anticipated much more protest,=94 Hege said.=
The=20
success was achieved
by maintaining consumer choice of platforms and reducing the dependence of=
=20
broadcasters on cable and satellite, he said. As a result, 2/3 of former=20
analog over-the-air households switched to DTV and 1/3 to cable and=20
satellite. In addition, 86% of households were satisfied or very satisfied=
=20
with the transition, he said.
[SOURCE: Multichannel News, AUTHOR: Ted Hearn]
http://www.multichannel.com/article/CA417064?display=3DBreaking+News
(requires subscription)
[SOURCE: Communications Daily, AUTHOR: Tania Panczyk-Collins]
(Not available online)

PUBLIC RADIO STATIONS BEGIN DIGITAL TRANSITION
Earlier this week, the Corporation for Public Broadcasting (CPB) announced=
=20
grants totaling more than $2.3 million to help 29 additional public radio=20
stations, including 19 serving rural and minority audiences, purchase the=20
equipment needed to transition to digital radio. Digital radio will bring=20
exciting advances in radio broadcast technology that could increase=20
significantly the quality and scope of program services, as well as to=20
provide richer quality sound than is currently available. CPB is=20
encouraging and supporting the early adoption of this promising new=20
technology by providing matching funds to eligible stations. The=20
announcement marks the third round of grants to assist local public radio=20
stations in making the digital transition. Last month, CPB announced=20
digital grants to 76 public radio stations serving 32 states and=20
territories. Also, the CPB Board of Directors recently approved a plan=20
(based on management recommendations and a consultation with a joint=20
industry panel) for allocating nearly $50 million in special fiscal year=20
2004 digital transition funds provided by Congress. This action will set=20
aside more than $4 million to fund efforts to create digital content and=20
services for public television (the first time such funding has been=20
available); $30 million will support public television activities; the=20
remaining $15 million will support public radio.
[SOURCE: Corporation for Public Broadcasting Press Release]
http://www.cpb.org/programs/pr.php?prn=3D355

TELECOMMUNICATIONS

TELECOMMUNICATIONS POLICY REVIEW: A VIEW FROM INDUSTRY
At the third hearing on revisiting the Telecom Act of 1996, Ivan=20
Seidenberg, Chairman and CEO of Verizon, warned the Senate Commerce=20
Committee that his company might not continue to invest in broadband if=20
regulations is not "straightened out." He asked Congress to adopt a=20
=93market-based=94 policy that, among other things, eliminated =93price=20
controls.=94 Telecom services are becoming more national in scope and yet=20
=93there are 53 jurisdictions setting prices=94 and terms, which is =93going=
to=20
continue to disadvantage the formation of broadband networks,=94 Mr.=20
Seidenberg said.
Comcast CEO Brian Roberts does not want to see a major overhaul of US=20
telecommunications law; his company is making too much darn money as it is?=
=20
"We're having problems storing all this cash," Mr. Roberts never said. =93To=
=20
do a massive rewrite of the Telecommunications Act, I think, would create=20
nothing but instability [and] would destabilize capital markets,=94 is what=
=20
Mr. Roberts actually told the Senate Commerce Committee Wednesday. Mr.=20
Roberts did speak in favor of Sen John Sununu's (R-NH) legislation that=20
would bar states from regulating voice-over-Internet-protocol services=20
(VoIP) since that will help with Comcast's rollout of those services in=20
three cities this year. =93We hope these policies will not have to await a=
=20
comprehensive rewrite of the Telecommunications Act,=94 he said. =93We need=
=20
them sooner rather than later.=94
[SOURCE: US Senate]
http://commerce.senate.gov/hearings/witnesslist.cfm?id=3D1187
[SOURCE: Multichannel News, AUTHOR: Ted Hearn]
http://www.multichannel.com/article/CA416963?display=3DBreaking+News
(requires subscription)
[SOURCE: Communications Daily, AUTHOR: Edie Herman]
(Not available online)

DOUBTS LINGER ON BELL'S SUCCESS
To avoid taking local phone competition rules to the Supreme Court, FCC=20
Chairman Michael Powell called on Baby Bells and competitors to negotiate=20
access to local networks. But with a June 15 deadline looming for existing=
=20
phone competition rules, federal policymakers are skeptical those=20
negotiations will work. Chairman Powell wants to devise interim rules. But=
=20
Michael D. Gallagher, head of the National Telecommunications and=20
Information Administration, wants to push mediation to reach settlements.=20
The companies involved agree there will be some increase in the price for=20
leasing phone lines. But in California, SBC wants that increase to be=20
$8/month while competitors like AT&T think $3/month is more reasonable. At=
=20
stake for consumers is the $10 billion a year in savings through lower=20
prices and more choices of carriers that competition has brought.
[SOURCE: Los Angeles Times, AUTHOR:James S. Granelli]
http://www.latimes.com/business/printedition/la-fi-phones13may13,1,19101...
tory?coll=3Dla-headlines-pe-business

AT&T WIRELESS HAS FOUR TIMES AS MANY CUSTOMER COMPLAINTS AS VERIZON
Records obtained by Consumers Union through the Freedom of Information Act=
=20
show AT&T Wireless has the highest number of complaints per subscriber of=20
the top six wireless companies, and that consumers in general complained=20
most about billing problems, service quality and transferring their phone=20
numbers when switching companies. =93The data is significant because the=20
Federal Communications Commission does not report complaints so that=20
consumers can look at each company=92s track record when shopping for cell=
=20
phone service,=94 said Janee Briesemeister, campaign manager for=20
www.EscapeCellHell.org, a project of Consumers Union, publisher of Consumer=
=20
Reports. Of the more than 20,000 complaints filed in 2003, AT&T Wireless=20
ranked first among the top six carriers both on a total complaint basis and=
=20
in complaints adjusted for market share. Verizon had the fewest complaints=
=20
per subscriber of the major carriers, which is consistent with Consumer=20
Reports=92 February 2004 analysis that found the company at the top in the=
12=20
metro areas surveyed. For all of the six national cell phone companies,=20
consumers complained the most about billing problems. Complaints about=20
transferring their phone numbers, service quality, contracts and marketing=
=20
were close behind. "Consumers want to know which companies are generating=20
the most complaints about billing, service and coverage before they sign a=
=20
long-term contract,=94 Briesemeister said. =93Companies will have an=
incentive=20
to improve if they know consumers can check out their service=20
records.=94 Even though the FCC =AD which currently is the only regulatory=
=20
agency overseeing wireless service =AD fields consumer complaints, it does=
=20
not disclose that information to help shoppers make informed decisions.=20
Consumers Union is pushing legislation in several states, most notably=20
California, that would give state regulators, not just the FCC, the ability=
=20
to deal with customer complaints about the wireless industry.
[SOURCE: Consumers Union Press Release]
http://www.consumersunion.org/pub/campaigncellhell/001079.html#more

COPYRIGHT

H.R. 107, THE DIGITAL MEDIA CONSUMERS' RIGHTS ACT OF 2003
The debate on copyright law vs fair use moved to the House Subcommittee on=
=20
Commerce, Trade, and Consumer Protection Wednesday. The debate centers on=20
whether regulation should focus on technology or behavior. As an analogy,=20
Gary Shapiro, President and CEO of the Consumer Electronics Association,=20
noted that Congress does not regulate the speed of cars; instead, speed=20
limits are set and law officers enforce those limits. The content=20
industries are arguing that consumers do not have the right to make back-up=
=20
copies of music and movies -- and that software and hardware that allow=20
people to make copies can be abused to make bootleg copies for sale.
H.R. 107, The Digital Media Consumers' Rights Act of 2003, has some support=
=20
in the House and would permit fair use copies of content, but there's not=20
much support on the House Judiciary Committee which has jurisdiction.
[SOURCE: House of Representatives]
http://energycommerce.house.gov/108/Hearings/05122004hearing1265/hearing...
[SOURCE: Communications Daily, AUTHOR: Patrick Ross]
(Not available online)
WP: http://www.washingtonpost.com/wp-dyn/articles/A22479-2004May12.html
News.com: http://news.com.com/2100-1025_3-5211674.html?tag=3Dnefd.top

HATCH SLAMS DISH DIVIDE
Senate Judiciary Committee Chairman Orrin Hatch (R-UT) has joined other=20
Members of Congress who oppose Echostar's policy of relegating some local=20
broadcast channels to a second-dish that subscribers in some markets must=20
install to get all their local channels. "I believe that the Senate should=
=20
prohibit the discriminatory placement of certain stations on a second=20
satellite, requiring subscribers to obtain a second dish to receive them,"=
=20
Sen Hatch said during a hearing on the satellite bill Wednesday. "I am=20
particularly concerned that Spanish-language, religious, and public=20
broadcast stations have been singled out for this treatment."
Sen Hatch also said DBS providers should see copyright royalty increases,=20
and the Senate should consider the House Judiciary Committee approach in=20
which a Copyright Arbitration Royalty Panel (CARP) determines the rate. But=
=20
Sen Hatch also said Congress should begin to devise a way to create equity=
=20
between cable and DBS on copyright issues.
[SOURCE: Broadcasting&Cable, AUTHOR: Bill McConnell]
http://www.broadcastingcable.com/article/CA417080?display=3DBreaking+News
(requires subscription)
[SOURCE: Communications Daily, AUTHOR: Terry Lane]
(Not available online)

INTERNET GOVERNANCE

GLOBAL FORUM ON INTERNET GOVERNANCE
A global forum on Internet governance organized by the United Nations March=
=20
25-27 was the most open and inclusive platform for addressing Internet=20
governance issues to date but time was too short to disaggregate the=20
various areas of policy and regulation that are loosely grouped under=20
=93Internet governance=94. There are fundamental concerns around the=20
accountability and legitimacy of current Internet governance structures,=20
but at the same time the overall tone is =93if it ain't broke, don't fix=
it=94.=20
But not everyone agrees on what is broken, nor on what fixing might=20
involve. The challenges the Global Forum faced will now be faced by the=20
working group which will take work forward to the next UN World Summit in=20
2005. The dilemma lies in having to both expand, and shrink the scope of=20
=93Internet governance=94, to get to practical proposals that also address=
=20
broader concerns. And it has to work in a way that is inclusive of=20
different stakeholders and perspectives, and actively tackles discontent=20
instead of glossing over it, says APC.
[SOURCE: Association for Progressive Communications]
http://www.apc.org/english/news/index.shtml?x=3D18720

THE COMPLICATED WORLD OF ICANN -- PART ONE
The Internet Corporation for Assigned Names and Numbers (ICANN) - the body=
=20
that's responsible for managing the registration and distribution system of=
=20
domain names in the Internet - held its first meeting of 2004 March 2-6.=20
More than 600 people from different countries took part in 27 fora. In=20
attendance was Carlos Afonso, planning director of APC's Brazilian member=20
organization, RITS. His report is a help anyone trying to understand=20
Internet governance issues.
Available in both English and Spanish.
[SOURCE: Association for Progressive Communications, AUTHOR: Carlos A.=20
Afonso is RITS=92s Director of Planning and Strategy]
(http://www.aivf.org/independent/index.html)

QUICKLY

ADVERTISERS BID, YOU CLICK, THEY PAY
How does Google make money? Through a system known as pay-per-click,=20
advertisers pay Google a fee, equal to their bids on keywords, each time a=
=20
computer user doing a search clicks on one of their ads. Last year, those=20
clicks generated about 95 percent of the company's nearly $1 billion in=20
revenue. To find buyers online for its computers, cameras and other=20
products, for example, Gateway spends millions of dollars quarterly on=20
Google. One day last week, Gateway's bidding for the words "digital camera"=
=20
averaged about 75 cents, while its bidding on the plural, "digital=20
cameras," averaged $1.08. Plural terms often cost more because consumers=20
using them in searches are more likely to end up as buyers.
There's lots more at the URL below.
[SOURCE: Washington Post, AUTHOR: David A. Vise]
http://www.washingtonpost.com/wp-dyn/articles/A22435-2004May12.html
(requires registration)
Also see:
GOOGLE SHOWS HOW SCHOOLS TURN RESEARCH INTO BIG BUCKS
[SOURCE: USAToday, AUTHOR: Jim Hopkins]
http://www.usatoday.com/usatonline/20040513/6198511s.htm

CELL-PHONE CAMERA SNOOP BAN ADVANCES IN CONGRESS
By voice vote, the House Judiciary Committee approved the Video Voyeurism=20
Prevention Act on Wednesday, a bill that would outlaw "upskirt" photos and=
=20
other forms of video voyeurism made possible by cell-phone cameras and=20
other miniaturized technology. The legislation would prohibit taking covert=
=20
pictures in locker rooms, bedrooms and other places where people have a=20
reasonable expectation of privacy.
[SOURCE: Reuters]
http://www.reuters.com/newsArticle.jhtml;jsessionid=3D5BIVWAY1WROWUCRBAE...
Y?type=3DtechnologyNews&storyID=3D5122009

MEDIA LITERACY GRANT TO GIRLS INCORPORATED
Girls Incorporated, a national non-profit that inspires all girls to be=20
strong, smart, and bold, announced today that AFTRA has awarded the=20
organization a $25,000 grant to expand the Girls Inc. Media Literacy=20
program. Additions to the program will emphasize media production and=20
community action. Girls in the Girls Inc. Media Literacy program evaluate=20
and critique print, audio, video, and electronic messages, and then create=
=20
their own messages. Girls become active viewers who are able to assess the=
=20
effects of media messages, develop news skills, and influence people in=20
their communities. In the updated program, girls aged 14 to 18 will use=20
media and technology skills to share stories about issues affecting them,=20
and design plans to address these problems. Girls will identify, explore,=20
and document social and public policy concerns that are relevant to their=20
lives; collaborate on message development; plan and produce a media=20
campaign to express their views; and engage communities in their work. The=
=20
Girls Inc. Media Literacy program will reach girls in cities such as New=20
York, Los Angeles, Omaha, and Dothan (Alabama). Over the long term, the=20
program has the potential to reach an estimated 200,000 girls in 71 Girls=20
Inc. centers in the U.S.
[SOURCE: American Federation of Television and Radio Artists Press elease]
http://www.aftra.org/press/pr_20040511_girlsincgrnt.html

JOB OPENINGS
The Campaign Legal Center is looking for experienced lawyers to fill FEC,=20
campaign finance law and litigation (district and appellate) positions. If=
=20
interested, please send resume and cover letter to Marianne Viray, managing=
=20
director, at mviray( at )campaignlegalcenter.org, or fax 202-736-2222.
--------------------------------------------------------------

Today is a busy policy day with Congressional hearings on copyrights,
satellites and reforming telecom policy. And the New America Foundation is
hosting "
From Broadcast to Broadband," a look at speeding the transition to digital
TV and freeing spectrum for high-speed Internet connections. For upcoming
media policy events, see http://www.benton.org/calendar.htm

TELEVISION
The Peacock's New Strut
Innovators Charting Out Viewing Possibilities

SPECTRUM
Spectrum Plan Gaining Momentum

LEGISLATION
Copyright Bills Moving on Hill This Week

QUICKLY
Regulators Dial in on AT&T
2003 Online Content Spending Up Almost 19 Percent
Study Says U.S. Should Reopen Some Web Sites

TELEVISION

THE PEACOCK'S NEW STRUT
And then there were five. General Electric Co.'s NBC will complete its
acquisition of Universal Studios this week creating NBC Universal, a
conglomerate of TV networks, television- and film-production studios and
theme parks. Feel the synergy. That's right, it's called cross-promotion.
The new company controls the NBC broadcast TV network and USA, Bravo and
Trio cable channels, owns the rights to show the upcoming Olympic Games,
Universal theme parks, a library of more than 40,000 TV episodes (including
classics such as "Dragnet" and "Columbo," and 1980s hits ranging from
"Magnum P.I." to "Murder, She Wrote"), "Law and Order" and its spinoffs as
well as daytime hits "Jerry Springer" and "Maury Povich." The five? NBC
Universal, Time Warner, Walt Disney, Viacom and News Corp -- all with 2003
revenues of more than $13 billion.
[SOURCE: Wall Street Journal, AUTHOR: Joe Flint joe.flint( at )wsj.com & Brooks
Barnes brooks.barnes( at )wsj.com ]
http://online.wsj.com/article/0,,SB108422969484507440,00.html?mod=todays...
(requires subscription)

INNOVATORS CHARTING OUT VIEWING POSSIBILITIES
What will TV viewing be like in the future. Combine broadband Internet
connections with digital video recorders (DVRs) and cheap digital storage
and you have freedom from TV schedules -- you have video on demand (VOD).
"With DVRs and VOD, the biggest change is that people will have more access
and will be able to watch not only when they want, but what they want,"
says Phillip Swann, president of TVPredictions.com, which tracks the
business deals and technological advancements that are changing the way we
watch TV. "Being hooked up to a server will allow the cable guys or the
networks to offer an unlimited amount of programming. If you want to see
the first 'Tonight Show with Johnny Carson,' for maybe $2.99, it can be
downloaded to your server and watched on any of your TVs."
[SOURCE: San Jose Mercury News, AUTHOR:]
(http://www.mercurycenter.com/)

SPECTRUM

SPECTRUM PLAN GAINING MOMENTUM
The FCC is giving serious consideration to the Cellular Telecommunications
& Internet Association proposal for solving the Nextel/public safety
interference problem. A decision could be reached in a couple of weeks. The
Commission appears to be trying to decide if Nextel will walk away from the
deal if the FCC adopts the CTIA proposal.
Members of Congress are starting to express concern about the plan. In a
letter to the FCC, nearly a dozen Members of Congress raised four concerns:
1) No guaranteed funding for public safety groups. 2) The plan caps
relocation funding at $700 million for public safety agencies. 3) The plan
will be tied up in litigation for years. 4) Several public safety
organizations have expressed similar concerns.
[SOURCE: Communications Daily, AUTHOR: Howard Buskirk]
(Not available online)
For more information on the CTIA proposal see
http://www.ctia.org/news_media/press/body.cfm?record_id=1400

LEGISLATION

COPYRIGHT BILLS MOVING ON HILL THIS WEEK
H.R. 107, The Digital Media Consumers' Rights Act of 2003 will be the topic
of a Wednesday hearing of the House Subcommittee on Commerce, Trade, and
Consumer Protection. The bill is basically an amendment to the Digital
Millennium Copyright Act and would permit circumvention of copy-protection
technology to engage in fair use of copyrighted material. The content
industry opposes the bill arguing that permitting people to disable
copy-protection mechanisms would invite not only fair use of works but
piracy. Two other bills are on this week's Congressional agenda. The Senate
Judiciary Committee will consider S-1933, the Enhancing Federal Obscenity
Reporting and Copyright Enforcement (EnFORCE) Act. The bill would require
the Justice Department to report to Congress on its child online
pornography prosecutions and online copyright cases, and ensure that each
department unit investigating computer crimes has at least one agent versed
in copyright law. The House Judiciary Committee will meet Wednesday to
consider HR-3632, the Anti-Counterfeiting Amendments Act which would outlaw
reproduction of watermarks and other security measures designed to ensure
authenticity of intellectual property.
[SOURCE: Communications Daily, AUTHOR: Patrick Ross]
(Not available online)

QUICKLY

REGULATORS DIAL IN ON AT&T PREPAID CALLS
AT&T is starting to put numbers to its potential liability for unpaid
access charges for calls it routed through the Internet: $200 million. The
FCC recently ruled that these calls were subject to access fees and AT&T
faces a number of lawsuits to recoup those fees. The company also estimated
it has not paid $215 million in access charges nor about $140 million in
Universal Service Fund contributions on its prepaid calling-card business.
The FCC has been reviewing the calling-card matter for about a year.
[SOURCE: C-Net|News.com, AUTHOR: Ben Charny]
http://news.com.com/2100-1037_3-5209490.html?tag=nefd.top
WSJ:
http://online.wsj.com/article/0,,SB108424188467607767,00.html?mod=todays...
LATimes:
http://www.latimes.com/business/printedition/la-fi-att1may11,1,5000599.s...

2003 ONLINE CONTENT SPENDING UP ALMOST 19 PERCENT
The Online Publishers Association and comScore Networks announced Monday
that Americans spent more -- about 19% more -- on online content in 2003.
Spending in the No. 1 category, personals/dating, grew to $449.5 million
from $302.1 million in 2002. Business/investment spending grew to $334.0
million in 2003 from $292.0 million the year earlier. The fastest-growing
categories were personal growth and sports, which more than doubled to
$91.1 million and nearly doubled to $38.2 million, respectively.
[SOURCE: Reuters]
http://www.reuters.com/newsArticle.jhtml;jsessionid=C1E3KW3HUDHXYCRBAE0C...

STUDY SAYS U.S. SHOULD REOPEN SOME WEB SITES
The Rand Corp is recommending that the federal government make available a
number of Web sites that were shut down after the terrorist attacks of
9/11. Rand found that for many of the sites the information being hidden
was available to the public by different means. It also identified four
databases where restricting access probably would enhance homeland
security. None was available to the public anymore. They included two
devoted to pipelines, one to nuclear reactors and one to dams.
[SOURCE: Washington Post, AUTHOR: Associated Press]
http://www.washingtonpost.com/wp-dyn/articles/A15750-2004May10.html
(requires registration)
--------------------------------------------------------------
Communications-related Headlines is a free online news summary service
provided by the Benton Foundation (www.benton.org). Posted Monday through
Friday, this service provides updates on important industry developments,
policy issues, and other related news events. Headlines are compiled by
Kevin Taglang (headlines( at )benton.org) -- we welcome your comments.
--------------------------------------------------------------