Benton RSS Feed

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. Headlines are compiled by=20
Kevin Taglang (headlines( at )benton.org) -- we welcome your comments.

BROADBAND BACKLASH
No Net Taxes? Why Not?
There's No Need For U.S. to Subsidize Broadband Access
Florida Paves Way for VoIP Taxation

TELECOM
Hearing Generates Ideas for Telecom Act Rewrite
Telecom's Potential
Baby Bell, Union Far Apart Amid Strike Talk

NEWS FROM THE BIG EASY
Sachs Tells Cable to Improve Pitch
Cable Lawyer: A la Carte Would Face Court Buzz Saw
Cable CEOs Downplay Reg Risk

SATELLITE
Update: Satellite Home Viewer Improvement Act
Nextel Would Pay $500M ENG Bill

QUICKLY
Republicans Lure the Arts to Politics and Protests
Newspaper Circulation Continues Overall Decline
Wireless Living

BROADBAND BACKLASH

NO NET TAXES? WHY NOT?
By March, 2004, 41.5% of U.S. households with Internet access already had=20
broadband and that share is growing by about 1% a month. So why does=20
broadband need subsidies and tax breaks, asks Gleckman. What problems are=20
lawmakers trying to solve. Local and state telecom taxes average about 6.5%=
=20
-- that means ~60 cents/month on dial-up accounts and maybe $2.60/month for=
=20
broadband connections. Are those figures scaring away any potential=20
Internet subscribers? The why did the Baby ells just increase the cost of=20
DSL by $2 to $3 a month? Gleckman concludes: High-speed Internet access is=
=20
a marvelous economic success story. In a few years, it will be a=20
near-universal means of communications in the U.S. And it's hard to imagine=
=20
how imposing a modest sales tax on the service will slow that trend or why=
=20
costly new government subsidies are needed to accelerate it.
[SOURCE: BusinessWeek, AUTHOR:Howard Gleckman]
http://www.businessweek.com/technology/content/may2004/tc2004053_0658_tc...
htm

THERE'S NO NEED FOR U.S. TO SUBSIDIZE BROADBAND ACCESS
Broadband services may be useful, but not useful enough to merit government=
=20
subsidies, Murray argues in his column. Governments normally step in when=20
markets fail, but the marketplace for broadband is working just fine. Rural=
=20
access is growing just fine, too, Murray argues. "Rural users may have to=20
pay more, but so what? The government doesn't intervene to ensure I can buy=
=20
a house in Washington, D.C., at Montana prices. Why would it intervene to=20
ensure Montanans can buy broadband at Washington, D.C., prices?" Instead of=
=20
tax breaks and subsidies, Congress should concentrate on creating=20
regulatory parity, privacy and security laws. "But the government doesn't=20
need to be setting prices, defining the products or subsidizing services.=20
The industrial policy debate ended more than a decade ago, when the=20
Japanese economy tanked and U.S. technology businesses soared. No reason to=
=20
revive it now."
[SOURCE: Wall Street Journal, AUTHOR: Alan Murray at Alan.Murray( at )wsj.com]
http://online.wsj.com/article/0,,SB108362192708100709,00.html?mod=3Dtoda...
s_page_one
(requires subscription)

FLORIDA PAVES WAY FOR VoIP TAXATION
Last week, the Florida House of Representatives failed to pass a bill that=
=20
would have postponed the enforcement of a tax levied on businesses and=20
individuals using substitute communications such as VoIP. The statute was=20
originally meant to tax businesses that bypassed the local telephone=20
network by establishing their own communications network. While it was=20
originally written with technologies such as satellite and microwave in=20
mind, it could be applied to businesses carrying voice traffic over their=20
IP data networks as well as individuals using VoIP services from companies=
=20
like Vonage. The Department of Revenue will now establish rules for the=20
enforcement of the tax. These rules must be approved by the governor and=20
his cabinet before the tax can be enforced.
[SOURCE: C-Net|News.com, AUTHOR: Marguerite Reardon]
http://news.com.com/2100-7352_3-5204656.html?tag=3Dnefd.top

TELECOM

HEARING GENERATES IDEAS FOR TELECOM ACT REWRITE
Jackson's commentary highlights six interesting ideas presented at the=20
Senate Commerce Committee's hearing on telecom policy last week. 1)=20
Simpler, less vague legislation would help keep telecom policy out of the=20
courts. 2) Legislation should not delegate major decisions to the FCC. 3)=20
The telecom industry spends more on litigation and regulation than on=20
research and development; this may be evidence that a regulatory revamp=20
which streamlines the process is long overdue. 4) Regulatory parity is=20
needed between technologies. 5) Set universal service goals and decide how=
=20
to fund them. 6) Every man, woman and child with either a telephone or a=20
television should receive Benton's Headlines -- so start sharing with your=
=20
friends. Jackson ends: It will be interesting to see how many of these=20
ideas become part of the next telecom legislation package, if one ever gets=
=20
passed in the next couple of years. Many of these notions sound good in a=20
hearing, but may not play as well in the harsh arena of political reality.
[SOURCE: Telephony's Regulatory Insider, AUTHOR: Donny Jackson]
djackson( at )primediabusiness.com

TELECOM'S POTENTIAL
A new report from the American Council for Capital Formation to be released=
=20
today will suggest that if telecom deregulation was done right capital=20
spending on communications equipment alone could increase by an average of=
=20
$2.8 billion a year over the next five years and create jobs. Regulatory=20
uncertainty is one of the reasons both market capitalization and capital=20
investment in the industry is down. Under-investment in infrastructure is=20
credited to price controls and an industrial policy that ignores property=20
rights in this editorial. It concludes: "[President] Bush rightly says 'a=20
proper role for the government is to clear regulatory hurdles so those who=
=20
are going to make investments do so.' Let's hope Washington's gridlocked=20
regulators finally get the message."
[SOURCE: Wall Street Journal Editorial Staff]
http://online.wsj.com/article/0,,SB108362611545400865,00.html?mod=3Dtoda...
s_opinion
(requires subscription)

BABY BELL, UNION FAR APART AMID STRIKE TALK
The Communications Workers of America and Baby Bell SBC may be headed to a=
=20
work stoppage as the two sides try to negotiate a new contract. Sticking=20
points in the talks include the company's insistence that union members=20
start shouldering more of their healthcare costs and the union's insistence=
=20
that SBC curtail the number of jobs it shifts to outside companies, many of=
=20
them overseas. In the last three years, 20,000 of SBC's union jobs were=20
eliminated, most of them in the local wireline business that has seen=20
demand plummet. Meantime, the company has been moving high-speed Internet=20
and other high-tech customer support jobs to overseas companies. CWA=20
represents 100,000 workers employed by SBC. More information is available=20
at www.cwa-union.org/sbc
[SOURCE: Los Angeles Times, AUTHOR:James S. Granelli]
http://www.latimes.com/business/printedition/la-fi-sbclabor4may04,1,7066...
story?coll=3Dla-headlines-pe-business

NEWS FROM THE BIG EASY

SACHS TELLS CABLE TO IMPROVE PITCH
National Cable & Telecommunications Association president Robert Sachs told=
=20
cable executives they need to do a better job of making the case to=20
Washington and consumers that they are getting additional value and=20
programming for their dollar. But a la carte pricing is not a solution Mr.=
=20
Sachs told the audience in New Orleans, "A la carte pricing would have a=20
devastating impact on ad-supported program networks that depend upon wide=20
distribution." As to indecent content, Mr. Sachs said, "I am proud our=20
industry responded swiftly by offering free channel blocking equipment to=20
consumers and informing them about tools to protect children from=20
inappropriate programming. Our follow-through will be just as critical."
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
http://www.broadcastingcable.com/article/CA414692?display=3DBreaking+News
(requires subscription)
SACHS: CABLE SHOULD EMBRACE VOIP SOCIAL POLICIES
[SOURCE: Multichannel News, AUTHOR: Ted Hearn]
http://www.multichannel.com/article/CA414707?display=3DBreaking+News
(requires subscription)

CABLE LAWYER: A LA CARTE WOULD FACE COURT BUZZ SAW
Comcast's top lawyer said a la carte legislation will be tough for Congress=
=20
to pass because many lawmakers know the courts would probably strike it=20
down under the First Amendment. "Lawmakers who have talked about and=20
offered to introduce legislation acknowledge that there are serious=20
constitutional infirmities in going this route," said Terry Bienstock,=20
executive vice president and general counsel of Comcast Cable. "So,=20
ultimately, I don't think it will get done, but we're taking it seriously =
=85=20
and doing what we can to make sure it doesn't get any legs," he added.=20
Charter Communications executive VP and general counsel Curtis Shaw said a=
=20
la carte would include lots of hidden costs like developing a "specialty=20
billing" system. Lost ad revenue would be made up by higher retail prices=20
-- exactly what people don't want.
[SOURCE: Multichannel News, AUTHOR: Ted Hearn]
http://www.multichannel.com/article/CA414670?display=3DBreaking+News
(requires subscription)

CABLE CEOs DOWNPLAY REG RISK
At the National Cable Show in New Orleans, cable executives downplayed the=
=20
possibility that Congress will enact a la carte or decency mandates on the=
=20
industry any time soon. Comcast CEO Brian Roberts questioned whether the=20
indecency restriction push is =93a legitimate debate or an election-year=20
debate=94. Time Warner CEO Richard Parsons noted that =93The indecency issue=
is=20
as old as our democracy.=94 But =93I don't think it=92s going to be a=
significant=20
issue for our industry.=94 He said that media companies may tone things down=
=20
a little, but ultimately =93you run your business the way your customers=
tell=20
you to run your business.=94 Charter Communications CEO Paul Allen said that=
=20
a la carte pricing would destroy the economics of ad-supported basic cable=
=20
networks. All the nodding heads in the audience sighed and felt a lot=
better.
[SOURCE: Broadcasting&Cable, AUTHOR: John Higgins]
http://www.broadcastingcable.com/article/CA415052?display=3DBreaking+News
(requires subscription)
Also see:
CABLE LEADERS RIP A LA CARTE
[SOURCE: Multichannel News, AUTHOR: Ted Hearn]
http://www.multichannel.com/article/CA415046?display=3DBreaking+News
(requires subscription)

SATELLITE

UPDATE: SATELLITE HOME VIEWER IMPROVEMENT ACT
The Senate Commerce Committee will hold a hearing today on reauthorization=
=20
of the Satellite Home Viewer Improvement Act (SHVIA). Public Knowledge=20
President Gigi B. Sohn will tell the Committee that controversial bills=20
that would change copyright law should be left off of legislation. The law,=
=20
which allows satellite TV providers such as Dish Network and DirecTV to=20
carry local and network TV signals, expires later this year. In her written=
=20
testimony, Ms. Sohn wrote =93We are concerned that because SHVIA must pass=
=20
by Sept. 30, 2004, it may become a vehicle for other intellectual=20
property-related legislation, some of which proposes radical changes to=20
copyright law.=94 Ms. Sohn will mention several bills pending in the Senate=
=20
and House to change copyright law that sponsors may wish to attach to=20
SHVIA. Public Knowledge is most concerned about H.R. 4077, a bill which=20
would lower the legal standard for copyright infringement. The Commerce=20
Committee =93should reject any and all attempts to turn SHVIA into a Trojan=
=20
Horse for those who would like to change copyright and trademark law,=94 Ms.=
=20
Sohn plans to say. Also in her testimony, Ms. Sohn will stress that the=20
broadcast industry should be held to a Dec. 31, 2006 deadline for=20
converting to digital transmissions. The spectrum turned back by=20
broadcasters would lead to improvements in wireless services, including=20
broadband offerings, telephony and emergency communications. Ms. Sohn will=
=20
also endorse a proposal to allow satellite providers to carry distant=20
network signals in areas where viewers don't yet have access to locally=20
broadcast digital TV. Such a proposal, she'll say, would =93not only=20
encourage the purchase of digital television sets, but would provide local=
=20
broadcasters an incentive to provide a full-power digital signal."
The hearing will be webcast; see the URL below.
[SOURCE: US Senate]
http://commerce.senate.gov/hearings/witnesslist.cfm?id=3D1174

NEXTEL WOULD PAY $500M ENG BILL
The FCC has ordered broadcasters to relinquish control of spectrum used to=
=20
transmit live news reports and sports coverage back to the studio. Over the=
=20
next decade, broadcasters supposed to give up one-third of these=20
"electronic newsgathering" (ENG) channels to satellite communications=20
companies. The problem is, the move is expected to cost stations hundreds=20
of millions of dollars and, even though the satellite companies are legally=
=20
obligated to pay for the costs of buying or adapting transmission trucks=20
and receive sites, few have raised enough money to build out their=20
communications networks, much less pay broadcasters. Nextel has developed a=
=20
proposal to pay $500 million upfront to help broadcasters make the move. In=
=20
return, Nextel wants FCC assurance that it will get a small sliver of the=20
spectrum now used for ENG channels as well as another chunk of spectrum=20
close by. Besides speeding the ENG takeback, the government would get=20
another benefit from the new plan: Nextel would vacate crowded spectrum at=
=20
800 MHz where phone users routinely interfere with communications of public=
=20
safety departments.
[SOURCE: Broadcasting&Cable, AUTHOR: Bill McConnell]
http://www.broadcastingcable.com/article/CA415063?display=3DBreaking+News
(requires subscription)
Nextel Strikes Deal With TV Broadcasters
[SOURCE: Washington Post, AUTHOR: ]
http://www.washingtonpost.com/wp-dyn/articles/A64125-2004May3.html
(requires registration)

QUICKLY

REPUBLICANS LURE THE ARTS TO POLITICS AND PROTESTS
A look at the political events artists are organizing in New York for the=20
Republican National Convention in August/September.
[SOURCE: New York Times, AUTHOR: Julie Salamon]
http://www.nytimes.com/2004/05/04/arts/04PROT.html
(requires registration)

NEWSPAPER CIRCULATION CONTINUES OVERALL DECLINE
The Audit Bureau of Circulations reported yesterday that the newspaper=20
industry's overall long-term decline is continuing. The New York Post, the=
=20
New York Times, the Daily News, the Wall Street Journal and the USA Today=20
all saw circulation gains in the last six months, but for the majority of=20
papers, subscribership is down. "Their readers are dying off faster than=20
they're being replaced," said John Morton, president of Morton Research, a=
=20
newspaper consulting firm. "The encouraging thing is that nationally, this=
=20
time, it wasn't a very big drop.''
[SOURCE: New York Times, AUTHOR: Jacques Steinberg]
http://www.nytimes.com/2004/05/04/business/media/04circulation.html
(requires registration)

The New York Times has a special section today -- Wireless Living. See=20
articles at http://www.nytimes.com/technology/techspecial/
--------------------------------------------------------------

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

LEGISLATIVE UPDATE
Senate OKs Four-year Ban on Net Access Tax
Lawmakers Vow to Pass New Law Against Spyware

POLITICS AND MEDIA
Cheney Praises Fox News Channel
Sinclair To Preempt Nightline

AT THE FCC
Equal Employment Supporters Urge FCC to Halt Broadcast License Renewals
Cell-Phone Trade Group Goes Against Nextel
Wireless Portability Complaints

CABLE
Conservative Groups Pushing a la Carte
700 Channels and Nothing On

BROADBAND
Broadband in the US Will Grow in '04
'Underbrush of Regulation' and Broadband Deployment

The Choice: Coffee or Headlines?

LEGISLATIVE UPDATE

SENATE OKs FOUR-YEAR BAN ON NET ACCESS TAX
The Senate on Thursday voted to renew a four-year ban on taxes on Internet
connections such as DSL and cable modems instead of a competing plan that
would have made a moratorium permanent. Tense negotiations are expected in
a conference committee with the House of Representatives, which
overwhelmingly approved a permanent ban in September. The ban on access
taxes, first enacted in 1998, expired in November. Although the legislation
does not affect sales taxes on items purchased over the Internet, the
compromise affects taxes singling out Internet access including digital
subscriber line, wireless and even BlackBerry services. Its supporters said
it does not change whether or not states may tax Internet telephone (VoIP)
services.
[SOURCE: C-Net|News.com, AUTHOR: Declan McCullagh]
http://news.com.com/2100-1028_3-5202140.html?tag=nefd.top
Reuters
http://www.reuters.com/newsArticle.jhtml;jsessionid=W4QH2MPPYPLBICRBAEZS...
SENATE APPROVES INTERNET ACCESS TAX MORATORIUM
[SOURCE: Communications Daily, AUTHOR:Patrick Ross]
(Not available online)
NYT: http://www.nytimes.com/2004/04/30/politics/30INTE.html
WSJ:
http://online.wsj.com/article/0,,SB108326145125697450,00.html?mod=politi...
WP: http://www.washingtonpost.com/wp-dyn/articles/A54744-2004Apr29.html
USAToday: http://www.usatoday.com/usatonline/20040430/6164107s.htm
SJ Merc:
http://www.mercurynews.com/mld/mercurynews/business/technology/8556868.htm
LATimes:
http://www.latimes.com/business/printedition/la-fi-itax30apr30,1,3209287...

LAWMAKERS VOW TO PASS NEW LAW AGAINST SPYWARE
An EarthLink scan of 1.1 million computers released two weeks ago turned up
more than 300,000 malevolent programs. "There is no more pernicious,
intrusive activity going on on the Internet today," said Rep Joe Barton
(R-TX), chairman of the House Energy and Commerce Committee. "We really
intend to do something about this." Rep Barton joined other members on the
panel backing a proposal from Rep Mary Bono (R-CA) would require 1)
purveyors of spyware on the Internet to notify people before loading new
software on their machines, 2) companies to identify themselves to
computer users, and 3) spyware to be easily removable. [Define "easy" in
computerspeak.] "The problem is not one of legal authority. It is one of
developing and bringing a case in federal court," FTC consumer protection
chief Howard Beales told the committee. Mr. Beales said some spyware is
actually used to help computer users. He and FTC Commissioner Mozelle
Thompson said it would be difficult to craft a law that would distinguish
between spyware and legitimate software. Mr. Beales also said new laws
could be burdensome to legitimate software companies, requiring consent
every time any piece of software is added to their customers' machines.
Commissioner Thompson advised committee members to give the software
industry a chance to solve the problem without new government intervention.
[SOURCE: Reuters, AUTHOR: Peter Kaplan]
http://www.reuters.com/newsArticle.jhtml;jsessionid=1S3FN4BRFIBRECRBAELC...
See Also:
FTC OFFICIALS BLAST SPYWARE MEASURES
[SOURCE: C-Net|News.com, AUTHOR: Declan McCullagh]
http://news.com.com/2100-1023_3-5202016.html?tag=nefd.top
CDT TESTIFIES ON APPROACHES TO "SPYWARE" THREAT
Testifying before the House Subcommittee on Commerce, Trade, and Consumer
Protection, CDT commended legislators for bringing attention to the growing
"spyware" threat. CDT told the Subcommittee that the best way to have an
immediate impact on the spyware problem is to prosecute the many "spyware"
practices that are already illegal; to pressure industry to develop codes
of best-practices and improve anti-spyware technologies; and to pass
baseline online privacy legislation. April 29, 2004
CDT's Testimony before the House Subcommittee on Commerce, Trade, and
Consumer Protection on Spyware, April 28, 2004:
http://www.cdt.org/testimony/20040429schwartz.pdf

POLITICS AND MEDIA

CHENEY PRAISES FOX NEWS CHANNEL
It is official: cable all-news channel Fox News has been named the official
media outlet of the Bush Administration. Well, no, the relationship is not
that formal; here's what Vice President Dick Cheney told tens of thousands
of Republicans who were gathered across the country to celebrate a National
Party for the President Day organized by the Bush-Cheney campaign. "It's
easy to complain about the press -- I've been doing it for a good part of
my career. It's part of what goes with a free society. What I do is try to
focus upon those elements of the press that I think do an effective job and
try to be accurate in their portrayal of events. For example, I end up
spending a lot of time watching Fox News, because they're more accurate in
my experience, in those events that I'm personally involved in, than many
of the other outlets." Allen writes: "It is unusual for a president or vice
president to single out a commercial enterprise for public praise."
[SOURCE: Washington Post, AUTHOR: Mike Allen]
http://www.washingtonpost.com/wp-dyn/articles/A53974-2004Apr29.html
(requires registration)

SINCLAIR TO PREEMPT NIGHTLINE
Ted Koppel plans to read the names of over 500 soldiers killed in Iraq
during tonight's Nightline. But for ABC viewers who receive their signals
from Sinclair-owned TV stations, the show will not be available. "Despite
the denials by a spokeswoman for the show," Sinclair said in a statement on
its Web site (http://www.sbgi.net/), "the action appears to be motivated by
a political agenda designed to undermine the efforts of the United States
in Iraq." The Wall Street Journal reports that Sinclair President and Chief
Executive David D. Smith and his family have donated more than $50,000 this
year to the Republican National Committee and Republican candidates. Mark
Hyman, Sinclair's vice president of corporate relations, has been outspoken
about what he views as the media's "negative" spin on Iraq news.
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton & Steve McClellan]
http://www.broadcastingcable.com/article/CA413971?display=Breaking+News
(requires subscription)
SINCLAIR TO BLOCK 'NIGHTLINE' BROADCAST
[SOURCE: Wall Street Journal, AUTHOR: Julia Angwin at julia.angwin( at )wsj.com]
http://online.wsj.com/article/0,,SB108327066319797656,00.html?mod=mm%5Fm...
(requires subscription)

AT THE FCC

EQUAL EMPLOYMENT SUPPORTERS URGE FCC TO HALT BROADCAST LICENSE RENEWALS
In March 2003, the FCC ruled that it would conduct random audits and
targeted investigations resulting from reports of possible Equal Employment
Opportunity (EEO) violations, targeting 5% each of radio and TV licenses
per year. But the Commission has not conducted one audit since then. "It is
a travesty that so many licenses have been or are soon to be renewed
without the Commission conducting a single EEO audit or investigation," the
Office of Communication (OC) of the United Church of
Christ said in a letter to the FCC this week. The OC and other EEO
supporters, including the Minority Media & Telecom Council (MMTC) and the
Institute of Public Representation at Georgetown University Law Center,
urged the FCC to make good on its promise and start EEO random audits and
targeted investigations of TV
and radio licensees at renewal time. MMTC estimated about 3,000 radio
licenses have been renewed and about 150 should have been audited under the
FCC's rules. The Radio-Television News Directors Association estimates that
since 1993 the percentage of minority radio general managers has dropped
from 5.7% to 2.5% in 2003.
[SOURCE: Communications Daily, AUTHOR: Tania Panczyk-Collins]
(Not available online)
See Also:
Broadcasting&Cable:
http://www.broadcastingcable.com/article/CA413968?display=Breaking+News

CELL-PHONE TRADE GROUP GOES AGAINST NEXTEL
The Cellular Telecommunications & Internet Association has stepped into the
Nextel spectrum swap debate, siding with rivals to Nextel. The lobbying
group voted to support a plan to move Nextel to a less-valuable spectrum --
a proposal the Federal Communications Commission is considering. Under
CTIA's plan, Nextel would also pay $3 billion to relocate the public safety
and other wireless carriers. The trade group plans to file its proposal
with the FCC today.
[SOURCE: Washington Post, AUTHOR: Yuki Noguchi]
http://www.washingtonpost.com/wp-dyn/articles/A54644-2004Apr29.html
(requires registration)

WIRELESS PORTABILITY COMPLAINTS
Since wireless phone number porting began on November 24, 2003, the FCC has
received approximately 7,040 informal complaints about wireless local
number portability as of April 24, 2004. Most of the complaints concern
alleged delays in porting numbers from one wireless carrier to another. A
much smaller number of complaints, estimated at about 15 percent of the
total, involve porting from wireline to wireless carriers. The carriers
most often mentioned in the complaints as either the carrier ported from or
the carrier ported to are: AT&T Wireless (3104); Sprint PCS (1712);
Verizon Wireless (1059); T-Mobile (991); Cingular Wireless (991); and
Nextel (501). Many of the complaints concern more than one carrier so the
total number of complaints received is smaller than the number of times a
carrier is mentioned in a complaint.
[SOURCE: FCC]
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-246604A1.doc

CABLE

CONSERVATIVE GROUPS PUSHING A LA CARTE
Concerned Women of America will release a poll on May 5 showing that the
majority of parents do not want to pay cable companies for indecent
programming as a condition of receiving channels that they think are
appropriate for their children. The organization also plans a radio and TV
ad campaign to let consumers know that purchasing cable a la carte will
allow parents to filter indecent programming in a cost-effective manner.
"Americans have no choice in selecting their basic-cable package under the
current market controls. The people voted for choice in our poll, and we're
asking cable companies and Congress to listen to the people," CWA chief
counsel Jan LaRue said. Joining CWA in the effort are Citizens for
Community Values, Family Research Council, Focus on the Family, Parents
Television Council and Consumers Union.
[SOURCE: Multichannel News, AUTHOR: Ted Hearn]
http://www.multichannel.com/article/CA413967?display=Breaking+News
(requires subscription)
In a related story, the Parents Television Council will pressure Capital
One to pull ads from CBS dramas C.S.I. and C.S.I. Miami.
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
http://www.broadcastingcable.com/article/CA413976?display=Breaking+News
(requires subscription)

700 CHANNELS AND NOTHING ON
Jeff Chester writes: As Congress begins preliminary hearings aimed
ultimately at rewriting the 1996 Telecommunications Act, one key goal must
be cable TV industry reform. Cable now provides almost 70 percent of U.S.
households with daily TV service. A tiny handful of companies, including
Comcast, Time Warner, Charter, Cox, and Adelphia (the scandal-ridden
company that will soon be consumed by the others), determine what Americans
can see on cable. According to a recent FCC filing, this handful of
companies control much more than the existing TV schedule, however, for
each cable operator is actually capable of delivering more than 700
channels of programming. The public is unaware of cable's capacity to
provide greater program diversity. Nor are most local and national
programmers well-informed about the potential opportunity. It's time to
take action on cable TV reform."
[SOURCE: Center for Digital Democracy]
(http://www.democraticmedia.org/index.html)

BROADBAND

BROADBAND IN THE US WILL GROW IN '04
A new report from Strategy Analytics estimates that the number of homes
using high-speed Internet service will grow from 25 million today to 33.5
million by the end of the year. Cable modem users will account for 5.2
million of these new subscribers, while 2.9 million households will add DSL
service. About 400,000 homes will use alternate broadband access
technologies such as fiber, wireless, and two-way satellite services. The
report, "Broadband in the US: Service Provider Strategies in a Changing
Market," also predicts that the year ahead will see major changes in the
competitive positioning of telephone and cable TV companies delivering
broadband. While lower prices and branded content have helped DSL attract
first-time customers making the switch from dial-up to broadband, cable
operators can target a wider range of consumers by delivering faster access
speeds and multi-service bundles. "Cable's combination of higher access
speeds, wider availability and more compelling bundles lets the leading
operators target several classes of consumers," notes James Penhune,
Director of Strategy Analytics' Broadband Media & Communications practice.
"These include new users as well as a growing number of consumers seeking
advanced video services such as High Definition TV (HDTV) and Video On
Demand (VOD). At the same time, aggressive cable telephony deployments from
leaders like Time Warner, Comcast and Cox will help these companies reach
customers seeking simplicity and savings from triple-play bundles combining
video, data and telephony. To match these advantages, regional phone
companies, like SBC and Verizon, must make the most of their partnerships
with satellite TV operators," adds Penhune. "Previous telco-satellite
partnerships often failed to produce the simplicity and reliability that
bundling is meant to deliver. But if tighter strategic alliances like SBC's
deal with EchoStar prove credible to consumers, they will help the telcos
keep pace with cable on bundling and postpone the need to consider more
costly video strategies such as fiber deployments."
[SOURCE: Strategy Analytics Press Release]
http://www.strategyanalytics.com/press/PR00118.htm

'UNDERBRUSH OF REGULATION' AND BROADBAND DEPLOYMENT
The Bush Administration today urged the FCC to clarify rules that govern
the deployment of fiber optics and other high speed Internet services to
millions of Americans residing in large apartment complexes known as
"multi-unit premises." In a letter to FCC Chairman Michael Powell, Acting
Assistant Secretary of Commerce for Communications and Information Michael
D. Gallagher urged the FCC to act "as expeditiously as possible" on
petitions before it that seek "to clarify the unbundling requirements
applicable to fiber loops serving residential multi-unit premises." "On
Monday, President Bush called for government to clear the regulatory
hurdles for broadband deployment," Dir Gallagher said. "Today, NTIA is
calling on the Commission to act quickly on these petitions to provide the
regulatory certainty the industry needs to deliver broadband to the one
hundred million Americans that live in apartment buildings. By taking this
action, the FCC will help ensure that we meet the President's goal of
universal and affordable broadband access by 2007." Under the FCC's present
rules, the high-tech services provided via fiber optic loops under the
fiber-to-the-home designation would not be as readily available to
customers living in apartment complexes.
See text of letter at
http://www.ntia.doc.gov/ntiahome/fccfilings/2004/FTTHLetter_04292004.htm
[SOURCE: NTIA]
http://www.ntia.doc.gov/ntiahome/press/2004/mduletter_04292004.htm

--------------------------------------------------------------

Given the choice at work between personal use of the Net or a morning cup
of coffee, employees say the coffee can go, according to a survey released
this week by Websense, which makes software designed to let companies
control employee Net access. We at Headlines say it is not an either-or.
Get that cup of coffee, settle in for some gripping telecommunications
policy news and we'll have you ready to greet that ten o'clock staff
meeting with a smile.
[SOURCE: C|Net News.com]
http://news.com.com/2100-7355-5201726.html?tag=cd.top

Happy weekend, all.
--------------------------------------------------------------

Today: Markup of House bill reauthorizing the Satellite Home Viewer
Improvement Act at 10am (Eastern)
http://energycommerce.house.gov/108/Markups/04282004markup1261.htm
Telecommunications Policy: A Look Ahead at 9:30 am (Eastern)
http://commerce.senate.gov/hearings/witnesslist.cfm?id=1166

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

LEGISLATION UPDATE
Senate Takes Up McCain Moratorium Compromise
The World Wide (Tax) Web

TELECOM POLICY
Telecommunications Policy Review: Lessons Learned from the Telecom Act of 1996
Broadband Over Power Line Report

BROADCASTING
TV Affiliates May Get Power to Reject Shows
DTV Group Pushes Dishes On Hill

PAY-PER SERVICES
Comcast: We're Keeping Content Promises
Local Programming and Satellite Digital Audio Radio Services

MEDIA POLICY REFORM
Philanthropist Benton Calls for Increased Funding for Media Policy Reform

PERSONALS
Charles Lewis Leaving the Center for Public Integrity
Elizabeth Peters Steps Down from Association of Independent Video and
Filmmakers

LEGISLATION UPDATE

SENATE TAKES UP MCCAIN MORATORIUM COMPROMISE
Sen John McCain (R-AZ) has offered an amendment to S-150, the bill under
consideration that would ban Internet access taxes. Sen McCain's amendment
would create a 4-year Internet access tax moratorium and exempt VoIP from
taxation. Sens Allen (R-VA) and Wyden (D-OR), the two main sponsors of the
bill, have endorsed the amendment. But opponents to S-150 are not
supporting the amendment which was supposed to be a compromise. The main
problem seems to be with how the legislation defines Internet access.
Majority Leader Bill Frist (R-TN) is trying to get a final vote on the bill
by Thursday, but a number of amendments could slow passage.
[SOURCE: Communications Daily, AUTHOR: Patrick Ross]
(Not available online)

THE WORLD WIDE (TAX) WEB
The Internet -- and its users -- have thrived mainly because government and
taxers have "stayed out of the way," writes the author of the Internet Tax
Nondiscrimination Act. "We must make sure that the avaricious tax
commissars from every county, city and state in America do not continue
conniving new ways to tax the Internet and the people who use it.
Otherwise, the Tax-the-Internet advocates will turn our freeways into toll
roads like the New Jersey Turnpike." Sen Allen endorses the McCain
amendment to his bill which calls for a four-year moratorium on Internet
taxes. The legislation also sunsets any current taxes on Internet access
and DSL service in three years. Sen Allen concludes: "With history as our
guide, I predict that if we protect the Internet and the American consumer
from stifling taxes now, we will see more economic growth in the future.
Those same bureaucrats who are hungry for short-term tax revenue today will
reap an even greater benefit from increased economic and consumer activity
tomorrow. It is up to us to show discipline and restraint and allow the
Internet to flourish unimpeded in the decades to come."
[SOURCE: Wall Street Journal, AUTHOR: Sen George Allen (R-VA)]
http://online.wsj.com/article/0,,SB108311007430995505,00.html?mod=todays...
(requires subscription)

TELECOM POLICY

TELECOMMUNICATIONS POLICY REVIEW: LESSONS LEARNED FROM THE TELECOM ACT OF 1996
The Senate Commerce Committee held the first of two hearings on telecom
policy reform Tuesday. Speaking of the Telecommunications Act of 1996, Sen
Ernest Hollings (D-SC), the Committee's Ranking Member, said to Qwest
Chairman Richard Notebaert, "It's not a complicated bill. You wrote it." He
also said the main mistake that Congress made was trusting the Baby Bells.
But Committee Chairman was more critical of the legislation, saying it has
been rendered useless by technological advances. Witnesses arguments were
not particularly new. Mr. Notebaert argued for regulatory parity for DSL
and cable. Representatives of competitors claimed the 96 Act has been
watered down by litigation and that the Baby Bells are too powerful to
negotiate with.
[SOURCE: US Senate]
http://commerce.senate.gov/hearings/witnesslist.cfm?id=1164
[SOURCE: Communications Daily, AUTHOR: Terry Lane]
(Not available online)

BROADBAND OVER POWER LINE REPORT
A report issued today by the Commerce Department's National
Telecommunications and Information Administration (NTIA) examines the
potential interference to federal radio systems that could result from the
deployment of broadband over power lines (BPL). The report concludes that
"rigorous technical solutions" would protect critical federal systems and
enable BPL to realize its promise as the "third broadband wire into the
home." There are 59,000 federal radio frequency assignments in the affected
bands of spectrum between 1.7 and 80 MHz. These frequencies provide
multiple services including: fixed, mobile, radio astronomy, radar, and
broadcasting. The NTIA report, which analyzed 10 million measurements of
BPL systems, suggests mitigation techniques to protect these critical
government radio systems. Among the solutions proposed in the report are:
a notch solution for the most sensitive and severely impacted systems;
local registration of BPL frequency use; intelligent power management; and
the use of a Web-based interface for potentially impacted parties. NTIA
will complete a Phase 2 study later this year that will assess the
potential interference risks due to aggregation and ionospheric propagation
of interfering signals from BPL systems; refine and apply BPL deployment
models; and evaluate the effectiveness of proposed Part 15 measurement
techniques.
[SOURCE: NTIA]
http://www.ntia.doc.gov/ntiahome/fccfilings/2004/bpl/index.html

BROADCASTING

TV AFFILIATES MAY GET POWER TO REJECT SHOWS
The spotlight on indecent broadcast programming may help network affiliates
win more control over their programming. Affiliate station owners want the
ability to reject network shows they deem ''unsuitable'' or
''unsatisfactory'' or that they want to replace with programs of "greater
local or national importance." But NBC, ABC and Fox have forced the
stations to sign contracts sharply limiting pre-emptions. Acting on a three
year-old petition, the FCC could clarify what affiliates can reject,
forcing contract revisions. It's unclear if the Commission will address
claims that some contracts give networks too much control over new digital
programs and let them cancel affiliations if stations are sold.
[SOURCE: USAToday, AUTHOR:Paul Davidson]
http://www.usatoday.com/usatonline/20040428/6154486s.htm

DTV GROUP PUSHES DISHES ON HILL
The Digital Coalition wrote a letter to members of Congress Tuesday asking
them to modify the Satellite Home Viewer Improvement Act to allow satellite
companies to import digital TV signals to markets where broadcasters aren't
providing them. The Coalition believes the legislation would immediately
benefit consumers by providing them with digital TV signals and would help
accelerate the transition to digital only broadcasting. The group says the
majority of commercial broadcasters are abdicating their digital
responsibilities by either not having met their build-out deadlines or
delivering a digital signal to only a fraction of their viewing area. "They
are dodging their responsibilities to the American public, using a loophole
that allows them to keep the spectrum beyond 2006 if fewer than 85% of
households in a given market do not have DTV sets or tuners capable of
receiving the digital signal," the letter reads. "This Catch-22 arrangement
essentially encourages broadcasters to delay the digital conversion. As
long as little DTV programming is available, consumers have no incentive to
purchase digital television sets. If consumers don't purchases digital
televisions, local broadcasters can continue stalling their
conversion. It's time to change the equation and motivate them to act now;
otherwise the transition might last until 2016 or beyond." The letter is
signed by Charlie Ergen of EchoStar; Grover Norquist of Americans for Tax
Reform; Tom Schatz, Citizens against Government Waste; George Landrith,
Frontiers of Freedom; Andrew Jay Schwartzman, Media Access Project; Gigi
Sohn, Public Knowledge; and Karen Kerrigan, Small Business Survival Committee.
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
http://www.broadcastingcable.com/article/CA413220?display=Breaking+News
(requires subscription)

PAY-PER SERVICES

COMCAST: WE'RE KEEPING CONTENT PROMISES
In an April 20 letter to key members of Congress and FCC Chairman Powell,
Comcast Cable Communications President Stephen Burke wrote that the company
has installed a dedicated toll-free line that consumers can call to speak
with a person trained to answer questions about parental controls. Comcast
will also include parental-control notices in subscriber bills in May and
June. Mr. Burke wrote that programming networks controlled by Comcast are
using, or will be using by early summer, the TV-rating system on all
programming except news and sports. The rating system is critical to
activating the V-chip in TVs
[SOURCE: Multichannel News, AUTHOR: Ted Hearn]
http://www.multichannel.com/article/CA413221?display=Breaking+News
(requires subscription)

LOCAL PROGRAMMING AND SATELLITE DIGITAL AUDIO RADIO SERVICES
On April 14, 2004 the National Association of Broadcasters (NAB) filed a
Petition for Declaratory Ruling. NAB's Petition requests the Commission to
1) prohibit satellite digital audio radio service ("SDARS") from using any
technology to permit the delivery of content that would be aired on a
receiver in one location that differs from the content that would be aired
on a receiver in a different location; and 2) prohibit SDARS providers from
providing locally oriented services on nationally distributed
channels. Alternatively, NAB requests the Commission to reopen the SDARS
licensing proceeding to evaluate the impact of the service on local
broadcasting. The FCC requests public comment on the issues raised by this
Petition. This proceeding has been issued a Commission docket number, MB
04-160, in order to facilitate filing public comment. Parties may file
responses to the Petition on or before June 4, 2004 and replies on or
before June 21, 2004.
Media Bureau Contact: Rosalee Chiara, (202) 418-0754.
[SOURCE: FCC]
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DA-04-1096A1.txt

MEDIA POLICY REFORM

PHILANTHROPIST BENTON CALLS FOR INCREASED FUNDING FOR MEDIA POLICY REFORM
While receiving the Council on Foundations' 2004 Distinguished Grantmaker
Award for lifetime achievement in philanthropy, Charles Benton, board chair
of the Benton Foundation, expressed alarm over the future of media in
America and called for greater funder involvement to encourage more open
and inclusive media policymaking. Noting consolidating media ownership and
the political and financial pressures faced by public broadcasters, Benton
let the audience know that his work in the fields of philanthropy and media
policy is far from over. "I believe the future of media and communications
in America is cause for serious concern. At stake is who controls what we
see, hear, and read. At stake is our ability to get our message out and
make a difference. At stake is nothing less than the health of our
democracy," Benton said in his acceptance speech. Earlier this month, the
Benton Foundation joined the Public Interest, Pubic Airwaves Coalition, an
alliance of public interest groups, media activists and grassroots
organizers, in urging the FCC to hold the nation's commercial broadcasters
to a more responsible standard of public service. The coalition's proposal,
since endorsed by FCC Commissioners Michael Copps and Jonathan Adelstein,
asks the regulatory agency to help ensure among other items that licensed
broadcasters air: 1) a minimum three hours per week of civic or electoral
affairs programming; and 2) independently produced programming for at least
25 percent of their prime time schedule.
[SOURCE: Benton Foundation Press Release]
http://www.benton.org/

PERSONALS

* Charles Lewis, founder of the Center for Public Integrity, will step down
in January 2005 as executive director of the nonprofit, nonpartisan
research organization based in Washington, D.C. He will continue to serve
on the Center's Board of Directors and also play a leadership role on
endowment and other long-term, strategic, institutional development issues.

* After five years at the helm of the Association of Independent Video and
Filmmakers as its Executive Director, Elizabeth Peters leaves us to pursue
other endeavors.
--------------------------------------------------------------
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.
--------------------------------------------------------------

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. Headlines are compiled by=20
Kevin Taglang (headlines( at )benton.org) -- we welcome your comments.

POLITICS & BROADBAND
President Bush Touts Efforts to Promote Broadband
Rights of Way
Senate Debates Net Access Tax
Taxing High-Speed Services: A Quantification of the Effects on the
DSL Industry and Universal Service
Taxing the Net

CABLE
Why Your Cable Bill Is Soaring
Verizon=92s Tauke Sees Cable as Player on Capitol Hill
Broadcast Lobby=92s Indecent Posture: Asking for Big Public Hand-out

QUICKLY
Spitzer Criticizes Deal For Airwave Exchange
Second Thoughts on Creating Registry of Unwanted E-Mail
Qwest Drops Access Fees for Internet Phone Calls
MacArthur Foundation Awards $250,000 to OneWorld International

POLITICS & BROADBAND

PRESIDENT BUSH TOUTS EFFORTS TO PROMOTE BROADBAND
President Bush started to add detail to his proposed goal of universal=20
access to broadband by 2007. Speaking Monday in Minnesota, he listed some=20
of the ways the
Administration intends to meet the goal: 1) Streamline federal=20
rights-of-way permits. He said it =93makes sense=94 to =93increase access to=
=20
federal land for fiber optic cables and transmission towers.=94 =93One sure=
way=20
to hold things up is that the federal lands say, you can't build on us.=94=
2)=20
Promote new technology development including broadband-over-power-line=20
(BPL) technology. 3) Spectrum policy reform to free up more spectrum for=20
wireless broadband. 4) Avoid taxation. To ensure broadband is affordable,=20
he said, =93[w]e must not tax broadband access. If you want broadband access=
=20
throughout the country, Congress must ban tax on access.=94 Many of the=20
issues are already being addressed at various federal agencies, and=20
Congress began consideration of Internet tax ban on Monday.
Will broadband be an election year issue? White House spokesman Scott=20
McClellan briefed reporters about President Bush=92s broadband announcements=
=20
prior to
the speech aboard Air Force One on the way to Minneapolis. He then fielded=
=20
21 questions from reporters, according to a transcript, with none of them=20
addressing broadband. [And CJ still can't get the White House press to talk=
=20
about media ownership!]
[SOURCE: Communications Daily, AUTHOR: Patrick Ross]
(Not available online)
See full text of the President's remarks at
http://www.whitehouse.gov/news/releases/2004/04/20040426-6.html
Reuters
http://www.reuters.com/newsArticle.jhtml;jsessionid=3DNFOFLJ4AFOQTECRBAE...
Y?type=3DtechnologyNews&storyID=3D4944394&section=3Dnews
News.com: http://news.com.com/2100-1028_3-5200196.html?tag=3Dnefd.top
See also:
PRESIDENT BUSH'S PLAN FOR AFFORDABLE BROADBAND ACCESS FAILS TO DEAL WITH=20
REAL ISSUES: "HIDDEN TAX, LACK OF CHOICE
President Bush=92s plan unveiled today to provide affordable high-speed=20
Internet access to all Americans by 2007 fails to address a primary hurdle=
=20
cited by consumer groups to achieving that goal: a =93hidden tax=94 the=20
administration allows cable operators to impose on customers by forcing=20
them to buy the services or packages they create to get access to the=20
Internet. =93We are encouraged to hear the President set a national goal of=
=20
affordable high-speed Internet for all, but unfortunately, he is not=20
focusing on the most important policy change necessary to achieve that goal=
=20
=AD eliminating the hidden tax the administration allows cable operators to=
=20
impose on consumers for broadband access,=94 said Gene Kimmelman, public=20
policy director of Consumers Union. Kimmelman is referring to the FCC=92s=20
policy of allowing cable operators to charge customers $55 to $75 a month=20
if customers want to use their own Internet Service Provider (ISP), rather=
=20
than the provider selected by the cable company in their broadband cable=20
package. About 13.7 million consumers currently receive their service from=
=20
cable companies. Since 2001, the cost of buying the services that connect a=
=20
cable customer to high-speed Internet access have increased three times the=
=20
rate of inflation. =93This policy of allowing cable operators to force=20
consumers to buy their services is absolutely contrary to the President=92s=
=20
goal of offering consumers affordable Internet access,=94 Kimmelman said.=20
=93This Administration policy produces neither genuine consumer choice nor=
=20
dynamic innovation, both of which are necessary to ensure affordable access=
=20
to the Internet for all Americans.=94
[SOURCE: Consumers Union Press Release]
http://www.consumersunion.org/pub/core_telecom_and_utilities/001013.html...
e
http://www.consumersunion.org/pub/0330%20bush%20broadband%20response%202...

RIGHTS OF WAY
In coordination with President Bush's remarks on broadband Monday, the NTIA=
=20
released the following report: To ensure that broadband providers are able=
=20
to obtain rights-of-way in a timely and cost-effective manner, the Bush=20
Administration formed a Federal Rights-of-Way Working Group to assess the=20
management of rights-of-way over lands under federal jurisdiction. The=20
report at the URL below contains the Working Group=92s findings and=20
recommendations for how the Federal Government can reform its approach to=20
rights-of-way management to help bring the promise of broadband to all=20
Americans, while ensuring that federal land managers fulfill their=20
important roles as stewards of our Nation=92s public property.
[SOURCE: National Telecommunications and Information Administration]
http://www.ntia.doc.gov/ntiahome/press/2004/frow_04262004.htm
http://www.ntia.doc.gov/reports/fedrow/index.html

SENATE DEBATES NET ACCESS TAX
By a 74-11 vote, senators agreed to begin a process climaxing in a final=20
vote expected later this week over whether to renew a lapsed ban that would=
=20
permanently prevent state and local governments from levying additional=20
taxes on dial-up, DSL (digital subscriber line), cable modem, wireless or=20
satellite access to the Internet. This vote "will determine to some extent=
=20
whether our e-mail, spam filters, Google searches, Web sites and instant=20
messages are singled out for discriminatory taxes," Sen. Ron Wyden (D-OR)=20
said. "I cannot believe the Senate would subject e-mail, BlackBerrys, a=20
variety of technologies to discriminatory taxes." While senators were=20
making speeches in public, their aides were fiercely negotiating potential=
=20
compromises in private. Sen. John McCain (R-AZ) is trying to broker a deal=
=20
that would renew the tax moratorium for four years, instead of making it=20
permanent, and tweak the definitions so states could tax=20
voice-over-Internet Protocol (VoIP) services. The House passed a bill=20
banning Internet taxation by voice vote in September.
[SOURCE: C-Net|News.com, AUTHOR: Declan McCullagh]
http://news.com.com/2100-1028-5200216.html?tag=3Dcd.top
WSJ:=20
http://online.wsj.com/article/0,,SB108302929664394348,00.html?mod=3Dtoda...
s_page_one
WP: http://www.washingtonpost.com/wp-dyn/articles/A44833-2004Apr26.html
nyt: http://www.nytimes.com/2004/04/27/politics/27INTE.html

TAXING HIGH SPEED SERVICES: A QUANTIFICATION OF THE EFFECTS ON THE DSL=20
INDUSTRY AND UNIVERSAL SERVICE
Curiously, on the day the Senate began deliberation on Internet taxation, a=
=20
new research report on the issue was released. The imposition of state and=
=20
local
telecommunications taxes on digital subscriber line (DSL) services would=20
slash federal Universal Service Fund (USF) contributions by $280 million=20
and lead to $4.3 billion in reduced industry revenues available for=20
investment in new union jobs and expanded availability of broadband=20
technologies, according to a new study released today by the New Millennium=
=20
Research Council (NMRC). The NMRC study, =93Taxing High-Speed Services: A=20
Quantification of the Effects on the DSL Industry and Universal Service,=94=
=20
was written by economist Stephen Pociask. Mr. Pociask is president of=20
TeleNomic Research, a consulting firm specializing in public policy=20
analysis for information technology industries. Pociask said: =93DSL service=
=20
is price-sensitive and an increase in taxes would produce an increase in=20
price, leading to a significant reduction in demand and a decrease in total=
=20
industry revenues.=94 He explained that consumers would migrate to=
tax-exempt=20
cable-modem service, or abandon high-speed access altogether. =93Since cable=
=20
operators do not pay into the Universal Service Fund, an increase in=20
cable-modem demand would not help state and local governments raise taxes=20
nor would it help fund universal service programs.=94 USF contributions are=
=20
paid on all interstate telecommunications services and are used to support=
=20
telecom service for low income customers, underwrite network development in=
=20
high-cost areas, and fund Internet services for schools, libraries, and=20
rural healthcare providers. Pociask warned: =93Because universal service=20
programs are already under financial strain, this substantial contribution=
=20
loss would put these social programs in serious jeopardy.=94
[SOURCE: New Millennium Research Council Press Release]
http://www.newmillenniumresearch.org/news/042604release.pdf
See full report at:
http://www.newmillenniumresearch.org/archive/042604report.pdf

TAXING THE NET
An editorial that supports President Bush's call for a ban on taxing=20
Internet access, particularly the high-speed phone, cable and satellite=20
varieties known as broadband. The senators who oppose the ban are called "a=
=20
small pro-tax contingent of Senate Republicans." The problem, the WSJ=20
writes, is not lack of revenue at the state and local level, but a problem=
=20
with the government entities reigning in spending. The goal of "pro-tax=20
Republicans" is to block any federal pre-emption of state and local=20
authority to tax Internet access and, ultimately, electronic commerce. This=
=20
is precisely why we have a Commerce Clause, the editorial states. It was=20
devised to prevent state and local entities from taxing interstate=20
commerce. The Internet's unique architecture and decentralized nature lend=
=20
themselves to the very type of tax abuse that the Constitution guards=20
against. The editorial concludes: The real problem with anything short of a=
=20
permanent ban is that it keeps the issue alive to be debated down the road.=
=20
That creates uncertainty, which is the last thing the industry needs. A=20
permanent ban would be more difficult to resurrect. It would also=20
incentivize a telecom sector that stands ready to invest billions to=20
upgrade networks and make high-speed Internet access available to all=20
American homes and small businesses.
[SOURCE: Wall Street Journal Editorial Staff]
http://online.wsj.com/article/0,,SB108302270893994195,00.html?mod=3Dtoda...
s_opinion
(requires subscription)

CABLE

WHY YOUR CABLE BILL IS SOARING
This is not from David Letterman's home office in DeKalb, but here's the=20
Top Ten reasons cable bills are higher or, as BW calls them, the ten=20
secrets the cable industry would like you not to know. 1) Higher=20
programming costs and spending on infrastructure to provide digital service=
=20
are bulking up bills. 2) If cable concerns faced more competition, bills=20
would be lower. 3) If you want all the bells and whistles, buy as many=20
services as you can from one company. 4) Cable operators know you watch=20
only about 15 of the hundreds of channels you receive. But if they let you=
=20
pick and choose the channels you want, it would mess up their whole=20
business model. 5) If people could pick and choose only the channels they=20
want, all those less popular channels likely would go out of business. 6)=20
You can get just a premium channel without paying for dozens of other=20
channels. 7) If you don't go digital, you can save a lot of money. 8) To=20
make digital cable worth the extra money, you may want to get a digital=20
video recorder (DVR). 9) To really save money, skip cable, and buy your=20
favorite shows at retail on DVD. 10) [This isn't really a reason, but,=20
perhaps, a remedy] Want to complain? Contact your "local franchising=20
authority," or LFA. This is the governmental body that negotiates with the=
=20
cable outfit to provide local service. Each month you pay a fee to this=20
agency, which shows up as a line on your bill, so feel free to contact them=
=20
if you're unhappy with service. The phone number should be on the back of=20
your bill. You may also want to contact a congressional representative.=20
With consumers increasingly feeling gouged by high cable bills, you might=20
find a willing ear from local politicians.
[SOURCE: BusinessWeek, AUTHOR: Amey Stone]
http://www.businessweek.com/bwdaily/dnflash/apr2004/nf20040426_7542_db01...
m

VERIZON'S TAUKE SEES CABLE AS PLAYER ON CAPITOL HILL
Tom Tauke, Verizon's top Washington lobbyist, told a New America Foundation=
=20
audience that the cable industry would likely turn to Congress if the=20
courts insist that cable operators must share their broadband facilities=20
with competing Internet-service providers. Both the Baby Bells and cable=20
operators could gain broadband deregulation from the FCC despite court=20
setbacks and Mr. Tauke said he preferred the FCC route over the=20
unpredictability of the legislative process. While current law provides the=
=20
FCC with amply authority to shape new broadband policies, Mr. Tauke argued=
=20
that Congress might have to pass a law ensuring that state and local=20
governments could not regulate voice-over-Internet-protocol services.
[SOURCE: Multichannel News, AUTHOR: Ted Hearn]
http://www.multichannel.com/article/CA413036?display=3DBreaking+News
(requires subscription)
See also: http://www.newamerica.net/index.cfm?pg=3Devent&EveID=3D363

BROADCAST LOBBY'S INDECENT POSTURE: ASKING FOR BIG PUBLIC HAND-OUT
CDD's take on the current debate on whether or not to grant multicasting=20
must-carry rights on cable systems for digital television broadcasters.=20
With DTV technology, today's analog broadcasters will be able to=20
simultaneously broadcast multiple (4-6) programming streams while now they=
=20
can only do one.
"Television broadcasters have their special-interest eyes on a political=20
prize that will enrich the industry with tens of billions of dollars in new=
=20
revenues. They are now political arm-twisting both the FCC and Congress to=
=20
help achieve this goal. Once again, the public will be forced to bankroll=
=20
a handful of big media companies, who will be guaranteed a secure economic=
=20
future. And once again, the public--including children, families, and=20
communities--will be left to pay the tab while getting nothing back in=
return."
"Multicasting must-carry will not provide the public with any real benefit,=
=20
unless policies are first put in place to ensure that broadcasters must=20
effectively serve =93the public interest, convenience, and necessity.=94 =
That=20
promise, made back in 1934, must now be honored in the digital TV=20
age. FCC Commissioners Adelstein and Copps have already vowed to do=20
so. Will Commissioners Martin, Abernathy and Chairman Powell do the same,=
=20
or will they once again promote broadcasters=92 interests over the=
public=92s?"
[SOURCE: Center for Digital Democracy]
http://www.democraticmedia.org/news/marketwatch/NABhandout.html

QUICKLY

SPITZER CRITICIZES DEAL FOR AIRWAVES EXCHANGE
New York state Attorney General Eliot Spitzer yesterday urged the FCC to=20
sharply increase the amount Nextel should pay for a swath of=20
higher-frequency spectrum it would get in exchange for moving its airwaves=
=20
to minimize radio interference with public safety communications. In a=20
letter to the Commission, AG Spitzer wrote, ""Nextel must be required to=20
compensate the United States Treasury for the spectrum it receives in the=20
amount that would have been received at an auction of that spectrum."
"I am concerned that this proposal, if adopted, would result in a windfall=
=20
to one company at the cost of billions of dollars to taxpayers," wrote=20
Spitzer, who is best known for bringing cases against investment banks and=
=20
mutual funds on behalf of investors hurt by deceptive practices. He added=20
that "Nextel is obligated to operate in the public interest -- it does not=
=20
need to be compensated in the form of $5 billion of free spectrum for=20
complying with federal law."
[SOURCE: Washington Post, AUTHOR: Yuki Noguchi]
http://www.washingtonpost.com/wp-dyn/articles/A44859-2004Apr26.html
(requires registration)

SECOND THOUGHTS ON CREATING REGISTRY OF UNWANTED EMAIL
In recent weeks, the Federal Trade Commission has been soliciting public=20
comment about the pros and cons of a Do Not E-mail list, and a report as=20
well as a timetable is due to Congress in mid-June. Although at first=20
thought appealing, Bounds' columns cautions against the potential effects=20
for small businesses who could benefit from reduced advertising costs and=20
the potential ineffectiveness of a list without significant enforcement=20
efforts and better tracking technology. Will small businesses have the=20
resources needed to keep their lists up-to-date? Will they be scared off=20
from using email because of potentially expensive litigation? And it will=20
be hard to enforce a Do Not E-mail list until spammers play by the rules.=20
"They take great pains to hide their identity, and it makes it difficult to=
=20
track for law enforcement," says FTC attorney Katie Harrington-McBride.
[SOURCE: Wall Street Journal, AUTHOR: Wendy Bounds Wendy.Bounds( at )wsj.com]
(http://wsj.com/)
(requires subscription)

QWEST DROPS ACCESS FEES FOR INTERNET PHONE CALLS
Phone giant Qwest said on Monday it would no longer levy connection fees on=
=20
calls made to customers on its network from Internet phone services. Qwest=
=20
said it was making the move to promote true VOIP services, and the offer=20
did not apply to efforts by some phone companies to route calls partially=20
over the Internet. The company also said it would allow VOIP companies to=20
buy circuits to accept incoming calls from customers in Qwest's 14-state=20
region.
[SOURCE: Reuters]
http://www.reuters.com/newsArticle.jhtml?type=3DinternetNews&storyID=3D4...
34&section=3Dnews

MACARTHUR FOUNDATION AWARDS $250,000 TO ONEWORLD INTERNATIONAL
The John D. and Catherine T. MacArthur Foundation has announced a grant of=
=20
$250,000 to the OneWorld International Foundation in support of its online=
=20
media network designed to help civil society organizations bring greater=20
attention to human rights and sustainable development issues worldwide.=20
OneWorld is an online gateway into news and commentary from a network of=20
6,500 nongovernmental organizations, radio broadcasters and video producers=
=20
working to improve peoples=92 lives around the world. Using the newest=20
communications technologies, OneWorld has made it possible for these=20
organizations to upload information they have generated=97including text,=20
images, audio and video content=97onto the OneWorld web portal,=20
www.oneworld.net, for sharing with global and local audiences. OneWorld has=
=20
become a resource for many mainstream media outlets looking for information=
=20
and news stories from fresh perspectives. Operating in 12 languages,=20
OneWorld Centers in Africa, the Americas, Asia and Europe publish country=20
and regional editions of the OneWorld web portal. A radio and video news=20
service, thematic portal sites on HIV/AIDS and the digital divide, and the=
=20
Open Knowledge Network (OKN) help complement OneWorld=92s work towards=20
achieving the Millennium Development Goals, which commit the international=
=20
community to an expanded vision of development. The OKN was designed to=20
help remote communities access information to improve their lives and to=20
help disseminate local knowledge to a global audience.
OneWorld United States, based in Washington, D.C., is a joint venture of=20
the Benton Foundation and OneWorld International
[SOURCE: John D. and Catherine T. MacArthur Foundation]
http://www.macfound.org/announce/press_releases/4_23_2004_1.htm
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