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People meters get their day in Congress today (see story below). For this
and other upcoming 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. While the summaries are
factually accurate, their often informal tone does not always represent the
tone of the original articles. Headlines are compiled by Kevin Taglang
(headlines( at )benton.org) -- we welcome your comments.

BROADCASTING/TELEVISION
A Vote for Local TV
Viacom Renews Election-Coverage Pledge
Noncoms Want More Money
Minorities Make News Comeback
House Debates a la Carte on Cable
Nielsen Critics Seize on New Ratings Data

FCC LEADERSHIP
The Games Bush Plays With Good Nominees Are Counterproductive

QUICKLY
Searching for Ways to Fight Junk E-Mail
CDT Releases Report on ICANN and Internet Governance
Judge Denies Motion to Dismiss Napster Case
Living the Broadband Life
New Publication: Broadband Facts

BROADCASTING/TELEVISION

A VOTE FOR LOCAL TV
$1.5 billion is likely to be spent in advertising during the 2004
elections. Ads will be targeted in "toss up" states like Florida, Ohio,
Missouri, Nevada and New Mexico. Television station owners in local markets
are likely to reap the lion's share of that money. A scant 0.1% of
television ad spending in 2000 was on the major networks, with the
remainder going to local spot advertising. For perspective, 25% of national
political ad spending went to networks in presidential campaigns between
1972 and 1992. Companies such as Hearst-Argyle, Sinclair Broadcasting,
Emmis, and Journal Communication are likely to be the big financial winners
this election season.
[SOURCE: CNN|Money, AUTHOR: Krysten Crawford]
http://money.cnn.com/2004/07/13/news/midcaps/politicalads/index.htm

VIACOM RENEWS ELECTION-COVERAGE PLEDGE
Responding to a June 15 call from Sen John McCain (R-AZ) and FCC Chairman
Michael Powell to detail plans for political coverage during this election
year, Viacom renewed its pledge to air five minutes of political coverage
every night on its stations' evening-news programs. "You will remember we
made the same commitment during the 2000 election season, and we fulfilled
that promise with numerous hours of substantive political coverage," wrote
Viacom co-president Les Moonves. "Many of our stations also sponsored and
aired live debates between candidates." Mr. Moonves urged Sen McCain to
drop his push to make stations offer free advertising time to federal
candidates. "We do not and have not needed any laws or regulations to
determine the amount of time or resources our stations should devote to
this vital subject," he wrote. "That is simply part of our responsibility
as a broadcaster, and we take that responsibility seriously."
[SOURCE: Broadcasting&Cable, AUTHOR: Bill McConnell]
http://www.broadcastingcable.com/article/CA436226?display=Breaking+News
(requires subscription)

NONCOMS WANT MORE MONEY
CPB President Kathleen A. Cox; Kevin Klose, President and CEO, National
Public Radio; John Lawson, President and CEO, Association of Public
Television Stations; and PBS President/CEO Pat Mitchell are asking Congress
for more money. Corporation For Public Broadcasting Reauthorization Bill
introduced by Sen. John McCain and expected to be marked up next week,
would fund CPB through 2011 at $416 million for FY 07; $432 million for FY
08; $450 million for FY 09; $468 million for FY 10 and $487 for FY 11. It
would also allocate $140 million over four years for programming and
equipment related to the digital transition (through 2009, the FCC's
proposed giveback date if all goes well), as well as $50 million for
satellite interconnection systems in 2005, with the same amount annually,
plus a 4% annual raise, through 2011. Although they are grateful for the
funds and the efforts of Sen McCain, the executives fear that these funding
levels could "jeopardize" their service's effectiveness.
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
http://www.broadcastingcable.com/article/CA436248?display=Breaking+News
(requires subscription)

MINORITIES MAKE NEWS COMEBACK
An annual Ball State survey for the Radio-Television News Directors
Association finds that minorities make up 21.8% of local TV news staffs, up
from 18.1% in 2002. The news management gains were even more impressive,
with minorities accounting for 12.5% of TV news directors, compared with
6.6% in 2002. Some of those gains, however, are either just recouping
earlier losses or may be attributable to improved response rates. Still,
both radio and TV percentages are well below the 32.8% minority population.
Ball State changed the methodology to boost the response rate, says survey
author Bob Papper, plus the margin of error is probably in the 3%-4% range,
which means that, statistically, the numbers have changed little in the
last decade, which is cause for concern, says Papper. Women in the news
workforce remained virtually the same at 39.1% vs. 39.3%, with women TV
news directors at 25.2%, down slightly from 2003.
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
http://www.broadcastingcable.com/article/CA436158?display=Breaking+News
(requires subscription)

HOUSE DEBATES A LA CARTE ON CABLE
The House Subcommittee on Telecommunications and the Internet jumped into
the a la carte debate Wednesday with a hearing on the subject that has
gained some traction on two fronts: empowering consumers to control their
cable costs and to block indecent content. Many executives in the cable
industry are against a la carte pricing saying it would actually raise
cable costs for consumers and doom channels targeted at minority audiences.
They point out that the cable industry already offers consumers free
channel-blocking technology. Janet LaRue, chief counsel for Concerned Women
for America, said cable's mandatory purchase of large tiers effectively
required consumers to pay for offensive programming in order to obtain the
channels they wanted -- something rarely seen in other markets. "We don't
have to pay for food we don't intend to eat," she added, demanding new
legislation in the absence of industry action.
[SOURCE: Multichannel News, AUTHOR: Ted Hearn]
http://www.multichannel.com/article/CA436234?display=Breaking+News
(requires subscription)
Someday, the Subcommittee on Telecommunications and the Internet will make
the hearing's testimony available online at:
http://energycommerce.house.gov/108/Hearings/07142004hearing1336/hearing...
See testimony delivered by cable execs at:
http://www.ncta.com/press/press.cfm?PRid=517&showArticles=ok

NIELSEN CRITICS SEIZE ON NEW RATINGS DATA
The Senate Commerce Committee will hold a hearing today on Nielsen Media
Research's new method for measuring local television audiences. Critics
claim that black and Hispanic viewers have been undercounted under the new
system, which could discourage networks and marketers from developing and
advertising on programs aimed at these viewers. Nielsen executives have
said the new system provides a more accurate picture of what people are
watching. Senator Conrad Burns, the Montana Republican who is chairman of
the communication subcommittee of the Senate Commerce Committee, said he
was concerned about the questions being raised about Nielsen, whose ratings
have been used for decades to help set TV advertising rates. "Lots of
dollars are involved here," he said. "It has an impact on the broadcast
industry that concerns me."
[SOURCE: New York Times, AUTHOR: Raymond Hernandez]
http://www.nytimes.com/2004/07/15/business/media/15nielsen.html
(requires registration)

FCC LEADERSHIP

THE GAMES BUSH PLAYS WITH GOOD NOMINEES ARE COUNTERPRODUCTIVE
Jonathan Adelstein has been a member of the FCC since December 2002 and his
term is to run out when the current Congress ends later this year. A year
ago February, Senate Minority Leader Tom Daschle (D-SD) submitted
Adelstein's name to President Bush for a full term on the FCC, set to
expire on June 30, 2008. But 17 months have passed. No nomination has
emerged from the White House. When George W. Bush became president, he
reached a handshake agreement early on with Sen Daschle to follow the
standards reached between President Clinton and then-Majority Leader Trent
Lott: To be spurned by the White House, nominees had to personally attack
the president or fail the FBI background check, or have expressed views
that were fundamentally inimical to the existence or basic function of the
agencies or commissions on which they were going to serve. Commissioner
Adelstein is just one of more than 20 Democrats recommended by Sen Daschle
have been shelved or ignored -- nominees for a variety of agencies, boards
and commissions. Commissioner Adelstein is seen as thoughtful,
hard-working, straightforward, knowledgeable, insightful, capable of
helping us navigate through the difficult issues of the communications age.
Ornstein concludes that the case highlights "a combination of the overall
White House contempt for Congress and its hostility to [Sen] Daschle and
Democrats more generally. It is foolish in the extreme."
[SOURCE: Roll Call, AUTHOR: Norman Ornstein]
http://www.rollcall.com/pub/50_6/ornstein/6210-1.html

QUICKLY

SEARCHING FOR WAYS TO FIGHT JUNK E-MAIL
Two systems -- Yahoo's DomainKeys standard and Sender ID, which is backed
by Microsoft and the Pobox.com e-mail service -- are being tested now to
best fix the authentication problem and, hopefully, curtail email spam.
Sender ID has attracted the most interest. It counts on the fact that
though e-mail headers are easy to forge, IP addresses -- the unique set of
numbers attached to every Internet domain -- are not. In this system, a
domain name owner publishes its IP address in a public database. When a
message arrives that claims to be from the domain name, the recipient's
e-mail program automatically checks the information in the header and
compares it with the information in the database. If it matches, the
message goes through. If it doesn't match, the message is quarantined or
blocked. DomainKeys takes an approach that is based on public-private key
cryptography. Sent messages include an encrypted digital signature created
by the e-mail provider's private key. When the message arrives at the
recipient's e-mail server, the server checks a database for the sender's
public key. If the public and private keys match up, the signature can be
decrypted and the sender's identity validated. If not, the message can be
blocked by spam filters.
[SOURCE: Los Angeles Times, AUTHOR:Chris Gaither]
http://www.latimes.com/business/printedition/la-fi-email15jul15,1,558584...
(requires registration)

CDT RELEASES REPORT ON ICANN AND INTERNET GOVERNANCE
In the context of ongoing global debates about Internet governance, CDT has
released a report calling for continued reform at the Internet Corporation
on Assigned Names and Numbers (ICANN). The report calls on ICANN to focus
on its limited mission and bottom-up, consensus-based approach, which
remains the best model for managing core Internet naming and numbering
functions. ICANN is meeting July 19-23 in Kuala Lumpur.
CDT Report, "ICANN and Internet Governance: Getting Back to Basics" [PDF]:
http://www.cdt.org/dns/icann/20040713_cdt.pdf
More on ICANN:
http://www.cdt.org/dns
[SOURCE: Center for Democracy and Technology]
(http://www.cdt.org)

JUDGE DENIES MOTION TO DISMISS NAPSTER CASE
U.S. District Judge Marilyn Patel ruled Wednesday that a suit may continue
against Napster investors like Bertelsmann and venture capital firm Hummer
Winblad. The suit alleges that their support for Napster promoted piracy
and cost the music industry $17 billion in lost sales. Judge Patel said the
plaintiffs, including music publishers, songwriters and record labels, had
the right to try to prove their allegations.
[SOURCE: Reuters, AUTHOR: Sue Zeidler]
http://www.reuters.com/newsArticle.jhtml;jsessionid=NFNAFW5SDFFH0CRBAE0C...

LIVING THE BROADBAND LIFE
For readers with a dial-up connection, I'll type this slowly. W h a t d o
e s i t m e a n t o h a v e a b r o a d b a n d c o n n e c t i o n
? In San Diego, 55% of households have gone high-speed. See what it means
to people's daily lives.
[SOURCE: New York Times, AUTHOR: Katie Hafner]
http://www.nytimes.com/2004/07/15/technology/circuits/15broa.html
(requires registration)

NEW PUBLICATION: BROADBAND FACTS
USTA is offering new publication on broadband penetration. Description from
USTA website: Broadband penetration has shown remarkable growth over the
past year. Service providers, stung by the downturn in traditional telecom
services revenue, have found broadband subscribers to be a welcome additive
to the bottom line. How long will this trend continue? What technology and
market dynamics are continuing to push the growth in DSL, cable modems, and
other high-speed access services? Where do things stand, and where are we
likely to be over the next few year? This publication includes a unique
compilation of research and analysis from the Federal Communications
Commission, Digital Tech Consulting, eMarketer, InStat/MDR, Leichtman
Research Group, Parks Associates and the Pew Internet & American Life
Project. Cost: $90
[SOURCE: United States Telecom Association]
http://www.telecom-bookstore.com/merchant.mv?Screen=PROD&Store_Code=UTB&...
--------------------------------------------------------------

The Senate Commerce Committee is holding a hearing today on CPB=20
Reauthorization=20
(http://commerce.senate.gov/hearings/witnesslist.cfm?id=3D1265) while the=
New=20
Millennium Research Council is hosting a discussion on the practicalities=20
and risks associated with the Internet-based =91layers model=92 proposed by=
MCI=20
as a basis for
rethinking U.S. telecommunications regulation=20
(http://www.newmillenniumresearch.org/news/event_062404.pdf).
For these and other upcoming media policy events, see=20
http://www.benton.org/calendar.htm

BROADCASTING & POLITICS
Each Convention to Get 3 Hours of Prime Time on TV Networks
NBC Not Worried About Content Issues, Wants Parity With Cable
VOA Changes Prompt Staffer Protests
Wyoming Pols Get Free Time
Pappas Makes Campaign Pledge

PUBLIC BROADCASTING
PBS Pledges Spending Cuts, Reforms
PubCasters Divided on FCC's Tape Retention Proposal

QUICKLY
Seattle: Surveys Support a la Carte Mandates
Powell: New Phone Competition Rules Soon

BROADCASTING & POLITICS

EACH CONVENTION TO GET 3 HOURS OF PRIME TIME ON TV NETWORKS
ABC and CBS said on Monday that they planned to broadcast three hours each=
=20
of the Democratic and Republican conventions in prime time, matching a=20
schedule that NBC announced on Thursday. The coverage corresponds to the=20
highest-profile speakers. For the Democrats, that means former President=20
Bill Clinton on Monday; Senator John Edwards on Wednesday; and Senator John=
=20
Kerry as he accepts the presidential nomination on Thursday. For the=20
Republicans, the prime-time coverage aims to show Gov. Arnold=20
Schwarzenegger of California on Tuesday, Vice President Dick Cheney on=20
Wednesday and President Bush on Thursday. For more coverage of the=20
conventions, viewers must turn to cable stations CNN, Fox News, MSNBC, or=20
CNBC. Spanish speaking Americans can tune into Telemundo. ABC, NBC and CBS=
=20
are also offering additional coverage in the digital TV format.
[SOURCE: New York Times, AUTHOR: Michael Janofsky]
http://www.nytimes.com/2004/07/13/politics/campaign/13tube.html
(requires registration)
PBS plans three hours of prime-time broadcast coverage each night of both=20
conventions. PBS anchor Jim Lehrer said the network viewed extended=20
coverage as "an important public affairs function." Analysts noted that TV=
=20
coverage of the conventions remained a crucial part of the election year.=20
"These are times when Americans sit up and listen and learn at a level that=
=20
they don't ordinarily do," said Thomas Patterson of Harvard University's=20
John F. Kennedy School of Government. "These are still important events=20
even if some of their newsworthiness has dimmed in time." Thomas Hollihan,=
=20
associate dean of the USC-Annenberg School for Communication, said, "The=20
convention is the second most viewed event of the general election campaign=
=20
=97 behind the presidential debates=85. People do tune in."
[SOURCE: Los Angeles Times, AUTHOR: Nick Anderson]
http://www.latimes.com/news/printedition/asection/la-na-coverage13jul13,...
38844.story?coll=3Dla-news-a_section
(requires registration)

NBC NOT WORRIED ABOUT CONTENT ISSUES, WANTS PARITY WITH CABLE
Speaking to TV critics over the weekend, executives from NBC responded to=20
Washington's indecency crackdown this year. New NBC Entertainment President=
=20
Kevin Reilly won't be looking over his shoulder: =93The Washington situation=
=20
is tricky, but there=92s a long history at NBC of being in those waters. You=
=20
know, I harken back to... some of what we've gone through on ER over the=20
years, Seinfeld, Will & Grace -- quality is always defensible, and that=92s=
=20
the game we=92re in. I'm not even thinking about it... Honestly, we=92re=20
looking for the best show we can and if there is some content issue at the=
=20
time we=92re ready to program it, we'll consider that.=94 Mr. Reilly said=
the=20
bigger challenge may be competition from cable, which faces less FCC=20
scrutiny. =93It=92s an uneven playing field, and I frankly think it=92s=
unfair...=20
I think everybody should be held to the same standard.=94
The executives faced criticism from critics over the minimal prime time=20
coverage on the network planned for the upcoming political conventions. NBC=
=20
Universal TV Group President Jeff Zucker suggested the network is meeting=20
broadcasting public interest obligations through its cable networks, "The=20
fact is we will have hundreds
and hundreds of hours of coverage. People will be able to find more=20
coverage than they've ever been able to find of both conventions throughout=
=20
all the networks of NBC. And I think that the amount of coverage that we=20
will have with both conventions is actually completely in line with what we=
=20
did 4 years ago. So I actually think we've got exactly the right amount of=
=20
coverage... If there was any real news going on there, we might look=20
differently... We=92re covering what we think are the newsworthy events: An=
=20
important speech at the Democratic convention on Monday night and one at=20
the Republican convention Tuesday night. I think that for anybody who wants=
=20
to watch gavel-to-gavel coverage of the convention, there are many outlets=
=20
in which they can do so."
[SOURCE: Communications Daily, AUTHOR: Valerie Milano]
(Not available online)

VOA CHANGES PROMPT STAFFER PROTESTS
Nearly half of Voice of America's (VOA) 1,000 staffers have signed a=20
petition protesting what they call the "piece-by-piece" dismantling of the=
=20
62-year-old service, which reaches 87 million people in 44 languages. The=20
petition asserts that the Broadcasting Board of Governors, which oversees=20
U.S taxpayer-funded broadcast outlets, has been funneling money into new=20
radio and TV stations that are not subject to the same journalistic=20
standards and monitoring as VOA. The new broadcast outlets are directed=20
primarily at the Middle East, where the U.S. image is at a historic low.=20
'As broadcast professionals . . . we call on the U.S. Congress to conduct=20
an immediate inquiry into the actions of the Broadcasting Board of=20
Governors,'' the petition says. It goes on to accuse the board of "killing=
=20
VOA" by closing its Arabic radio service, reducing English-language=20
broadcasting and launching services with "no editorial accountability" and=
=20
limited breaking news.
[SOURCE: USAToday, AUTHOR:Barbara Slavin]
http://www.usatoday.com/usatonline/20040713/6359181s.htm

WYOMING POLS GET FREE TIME
KCWY, Sunbelt Communications's NBC affiliate in Casper, has offered 10 free=
=20
minutes of airtime apiece to the eight candidates for Wyoming's single seat=
=20
in the House in advance of the August 17 primary. Each will get five=20
minutes in the 5 p.m. news, repeated in the next day's morning newscast.=20
They will be encouraged to stay positive, rather than attack their=20
opponents, but the station will not censor the messages, says the station's=
=20
general manager. He also says the time will be promoted so that viewers=20
will know to tune in.
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
http://www.broadcastingcable.com/article/CA435454?display=3DBreaking+News
(requires subscription)

PAPPAS MAKES CAMPAIGN PLEDGE
Pappas Telecasting stations KMPH Fresno, KUVR Reno, KSWT Yuma, KHGI=20
Lincoln, KPTM, Omaha, and KBBC El Paso are committed to airing at least=20
five minutes of candidate-centered speech per day for the 30 days preceding=
=20
the general election. The six stations are the only ones in the group that=
=20
produce local news. All 25 of the stations the group owns will air "get out=
=20
the vote" public-service announcements starting now and ending on Election=
Day.
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
http://www.broadcastingcable.com/article/CA435550?display=3DBreaking+News
(requires subscription)
See more about "get out the vote" public service announcements:
Getting Out the Vote, With Style
[SOURCE: New York Times, AUTHOR: Nat Ives]
http://www.nytimes.com/2004/07/13/business/media/13adco.html
(requires registration)
And see an article on the limits of PSAs:
Activists Cry Censorship in Fight Over Ad
[SOURCE: Los Angeles Times, AUTHOR: Anne-Marie O'Connor]
http://www.latimes.com/news/printedition/asection/la-na-billboard13jul13...
462845.story?coll=3Dla-news-a_section

PUBLIC BROADCASTING

PBS PLEDGES SPENDING CUTS, REFORMS
Responding to a petition signed by 95 public station leaders which said=20
that stations are receiving a "declining return on [National Program=20
Service] investments," PBS has cut $5.85 million from proposed annual=20
assessments to be paid by member stations -- and pledged to move quickly on=
=20
reforms to make its decision-making more visible and accountable to=20
stations. "We're going to do this or otherwise we are the caretakers=20
presiding over the beginning of the end," said PBS President Pat Mitchell=20
during the PBS Board meetings. Budget cuts included some programing, but=20
also $2 million of the promotion budget -- cutting significantly into=20
spending for the "Be More" institutional positioning campaign, ending the=20
Share a Story promotion and an advertising grant program for stations. PBS=
=20
Interactive will reduce the number of websites it will refresh and produce=
=20
this year. The PBS Board opened its meetings to include station=20
representatives and the network will use more rigorous criteria for program=
=20
performance and reform its decision-making processes to make them more=20
transparent to member stations.
[SOURCE: Current, AUTHOR: Karen Everhart]
http://www.current.org/pbs/pbs0412budget.shtml

PUBCASTERS DIVIDED ON FCC=92S TAPE RETENTION PROPOSAL
The Association of Public TV Stations (APTS), which represents more than=20
350 stations, has said it would oppose the FCC's proposal to require all=20
stations to keep recordings of all broadcast programming for 60-90 days.=20
But some stations, realizing the needed technology is fairly cheap and=20
cognizant of their responsibilities to follow FCC rules, plan to support=20
the proposal. But seemingly forgotten is a 1978 court decision which=20
overturned a similar FCC requirement for public broadcasters to keep=20
recordings of programs in which =93any issue of public importance is=20
discussed=94 for 60 days and make it available to the FCC on request. The=20
rule was challenged on the 1st and 5th Amendments and a US Appeals Court=20
found that the rule would have a chilling effect on political speech. The=20
new proposal could also face a legal challenge which could 1) come to the=
=20
same 1st Amendment interpretation or 2) be viewed differently because all=20
programming and all stations would be subject to the rule.
[SOURCE: Communications Daily, AUTHOR: Dinesh Kumar]
(Not available online)

QUICKLY

SEATTLE SURVEYS SUPPORT A LA CARTE MANDATES
Seattle (WA) cable regulators sponsored a pair of surveys a found that 46%=
=20
of people there would pay =93a little extra=94 for more a la carte options=
=20
while 66% said they would opt for a la carte if given the chance by the=20
cable company. =93Because cable operators have not been responsive to the=20
demand for customized programming, the FCC should establish regulations=20
that facilitate consumers=92 choice, whether this is accomplished by=20
requiring cable companies to offer a la carte programs, theme-tiered=20
programs, or some other options,=94 said Tony Perez , who signed the FCC=20
comments filed by Seattle=92s Office of Cable Communications. Seattle's=
cable=20
market is dominated by Comcast (117,000 subscribers) which opposes a la=20
carte. A second cable company, Millennium Digital Media, has about 17,000=20
subscribers.
[SOURCE: Multichannel News, AUTHOR: Ted Hearn]
http://www.multichannel.com/article/CA435434?display=3DBreaking+News
(requires subscription)

POWELL: NEW PHONE COMPETITION RULES SOON
FCC Chairman Michael Powell said that his fellow commissioners are=20
reviewing now draft temporary telephone competition rules. If adopted, the=
=20
rules would be in place for six months while the Commission craft permanent=
=20
rules. Chairman Powell did not "feel it prudent right now" to provide any=20
details about what the rules suggest.
[SOURCE: C-Net|News.com, AUTHOR: Ben Charny]
http://news.com.com/Powell%3A+New+phone+competition+rules+soon/2100-1037...
266582.html?tag=3Dnefd.hed
--------------------------------------------------------------
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.
--------------------------------------------------------------

Hearings next week on Corporation for Public Broadcasting Reauthorization
and Nielsen Local People Meter TV Rating System, a forum on the kids.us
Internet domain and a discussion of rethinking telecommunications policy
based on the "layers model." For these and other upcoming media policy
events, see http://www.benton.org/calendar.htm

TELECOM
Nextel Deal Done
FCC Adopts All-or-Nothing Rule
Telecom Rates Battle Heats Up
Spectrum-Based Services in Rural Areas
Critic pans IRS suggestion on VoIP

FCC LEADERSHIP
FCC's Powell Sits on Horns of Dilemma
Senators Back Adelstein

MEDIA
FTC Files Report on Hollywood
Mitchell Defends PBS Path

INTERNET
Internet as Unique News Source
Study: Broadband Market to Triple by 2008

TELECOM

NEXTEL DEAL DONE
The FCC adopted a plan Thursday to resolve the ongoing and growing problem
of interference to public safety radio systems operating in the 800 MHz
band. In recognition of the critical need for the Nation's first
responders to have robust and highly reliable communications systems, the
Commission based its decision on meeting three essential goals: first and
foremost, resolving the interference problem to public safety radio
systems; second, ensuring equitable treatment of all of the affected
spectrum licensees with minimal disruption to users and the public alike;
and third, as the Commission is the federal agency charged with
administering the spectrum for the public good, exercising sound principles
of spectrum management. The decision was unanimous.
The Commission adopted a new band plan for the 800 MHz band to address the
root cause of the interference problem by separating generally incompatible
technologies , with the costs of relocating 800 MHz incumbents to be paid
by Nextel Communications (Nextel). The Commission implemented objective
technical standards - "Enhanced Best Practices" -- for defining
"unacceptable interference" to public safety systems operating in the 800
MHz band and procedures detailing the responsibilities and expectations
regarding abatement of such interference.
To accomplish the reconfiguration, the Commission will require Nextel to
give up rights to certain of its licenses in the 800 MHz band and all of
its licenses in the 700 MHz band. In exchange, the Commission will modify
Nextel's licenses to provide the right to operate on two five-MHz blocks in
a different part of the spectrum -- specifically 1910-1915 MHz and
1990-1995 MHz -- conditioned on Nextel fulfilling certain obligations
specified in the Commission's decision. The Commission determined that the
overall value of the 1.9 GHz spectrum rights is $4.8 billion, less the cost
of relocating incumbent users. In addition, the Commission concluded that
it would credit to Nextel the value of the spectrum rights that Nextel will
relinquish and the actual costs Nextel incurs for to relocate all
incumbents in the 800 MHz band. To the extent that these combined credits
total less than the determined value of the 1.9 GHz spectrum rights, Nextel
will make an anti-windfall payment to the United States Department of the
Treasury at the conclusion of the relocation process equal to the difference.
Nextel released a statement saying it was reserving judgment on the plan.
"The information released today by the Commission contains few details
regarding the obligations its decision would impose on Nextel," the carrier
said. "Once the Commission's order is released, we have an obligation to
review all aspects of the decision to fully understand the implications to
Nextel's shareholders."
[SOURCE: FCC]
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-249414A1.doc
NEXTEL GETS 1.9 GHz SPECTRUM BUT MUST PAY BILLIONS
[SOURCE: Communications Daily, AUTHOR: Howard Buskirk]
(Not available online)
Here's links to coverage
* Wall Street Journal
http://online.wsj.com/article/0,,SB108930080395358561,00.html?mod=todays...
* Washington Post: FCC's Powell Stands Up to Verizon Threat
http://www.washingtonpost.com/wp-dyn/articles/A38014-2004Jul8.html
Nextel Must Pay at Least $3.2 Billion for Airwaves
http://www.washingtonpost.com/wp-dyn/articles/A37692-2004Jul8.html
* Los Angeles Times
http://www.latimes.com/business/printedition/la-fi-fcc9jul09,1,4480902.s...
* USAToday
http://www.usatoday.com/usatonline/20040709/6353485s.htm
* New York Times
http://www.nytimes.com/2004/07/09/business/09spectrum.html

FCC ADOPTS ALL-OR-NOTHING RULE
The FCC adopted an all-or-nothing rule that requires a requesting
telecommunications carrier seeking to adopt terms in another carrier's
interconnection agreement to adopt the agreement in its entirety, taking
all rates, terms, and conditions from the adopted agreement. The
Commission based its decision on two key determinations. First, the Order
concludes that the current pick-and-choose rule is not compelled by the
language of section 252(i) of the Communications Act. Second, the Order
finds that the new all-or-nothing rule will promote more give and take in
negotiations, which will produce mutually beneficial agreements that will
be better tailored to meet carriers' individual needs. In addition, the
new rule is expected to reduce negotiation time, expenses, and possible
areas of dispute, while at the same time providing adequate protection
against potential discrimination. Based on these determinations, the Order
concludes that the benefits of adopting the all-or-nothing rule outweigh
the burdens, and therefore replaces the pick-and-choose rule.
[SOURCE: FCC]
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-249406A1.doc

TELECOM RATES BATTLE HEATS UP
A study by University of California-Berkeley Professor Yale Braunstein
found that current phone network lease rates have saved SBC's California
customers at least $300 million a year. Customers who switched carriers
saved up to 34%, while competition drove SBC customers' bills down as much
as 22%, the study found. But the rules that set those rates were overturned
by a court and have now expired. California phone regulators postponed a
decision Thursday on rival proposals that would increase the rates
competitors pay SBC for use of its infrastructure by more than 20%.
[SOURCE: San Jose Mercury News, AUTHOR:John Woolfolk]
http://www.mercurynews.com/mld/mercurynews/business/technology/9114576.htm

SPECTRUM-BASED SERVICES IN RURAL AREAS
To help ensure that wireless service offerings are available in rural
areas, the FCC on Thursday 1) adopted a default definition of "rural" as a
county with a population density of 100 persons or fewer per square mile;
2) determined that smaller licensing areas may be appropriate in some
spectrum blocks to encourage deployment in rural areas, and that licensing
areas will continue to be established on a service-by-service (or
band-by-band) basis, as appropriate; 3) eliminated the cellular
cross-interest rule, which currently applies only in Rural Service Areas
(RSA) and transitioned to case-by-case competitive review for all
applications involved in transactions involving cellular licenses; 4)
allowed licensees, at their option, to grant a security interest in certain
wireless licenses to the U.S. Department of Agriculture's Rural Utilities
Service (RUS), subject to the Commission's prior approval of any transfer
of control; 5) increased permissible power levels for base stations in
certain wireless services that are located in rural areas or that provide
coverage to otherwise unserved areas, 6) amended its rules to permit
certain geographic-area licensees to comply with construction build-out
requirements by demonstrating that they provide "substantial service" and
7) concluded that re-licensing and market-based mechanisms aren't
necessarily mutually exclusive and that the two approaches can be
complimentary in certain circumstances.
Commissioner Copps issued a strong partial dissent concerning 1)
eliminating the rule that prohibits cellular carriers from merging, 2)
maintaining the rule that allows companies to meet their build out
requirements by serving only urban markets and ignoring rural customers,
and 3) allowing corporations to mortgage their spectrum licenses,
essentially allowing them to use a public asset as collateral when seeking
loans.
[SOURCE: FCC]
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-249405A1.doc
Statement by Commissioner Copps
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-249405A3.doc

CRITIC PANS IRS SUGGESTION ON VOIP
Rep Chris Cox (R-CA) sent a letter Wednesday to President Bush asking him
to "direct the IRS immediately to affirm that [the] 100-year-old tax does
not apply to the Internet, but only to traditional analog voice services."
"If IRS analysis suggests that (affirming) this will prevent Washington
from raising new revenue from this tax, that would be very good news for
American consumers--and more than 100 years overdue," wrote Rep Cox, the
fourth-most-senior Republican in the House. "When it comes to consumer
excise taxes, only alcohol and tobacco are taxed more heavily at the
federal level than phone service," Rep Cox wrote in his letter to President
Bush. "Telephone customers are then hit with state and local tax rates that
can run up to three times the rates paid on other goods. That is why the
House has voted to liberate consumers from this regressive tax."
[SOURCE: C-Net|News.com, AUTHOR: Declan McCullagh]
http://news.com.com/Critic+pans+IRS+suggestion+on+VoIP/2100-1036_3-52612...

FCC LEADERSHIP

FCC'S POWELL SITS ON HORNS OF DILEMMA
A look at the tenure of FCC Chairman Michael Powell. His proponents say his
tenure, despite its highly publicized problems, will be lauded. "It's been
a struggle, but he has turned the ship in a deregulatory way," says Scott
Cleland, head of the Precursor Group. "Did he get everyone to go there
immediately and on his terms? No. But they are going to follow him."
Critics say Chairman Powell has focused too much on a sweeping free-market
agenda while not maintaining strong political alliances and neglecting the
short-term consequences for influential interest groups. Jeffrey Bray,
managing director of Babson Capital Management, says he has shifted most of
his company's telecom investments outside the U.S. "The inability of the
FCC to execute on major decisions has driven investors away" and makes it
impossible for companies to make "capital and customer decisions" with any
competitive certainty, he says. Mr. Bray and others say they expected more
from Chairman Powell, a Republican who was appointed as a commissioner by
President Clinton and chairman by President Bush. His penchant for
cutting-edge technology made him acutely capable of mapping out a strategy.
Plus, he knew how Washington worked; the 41-year-old former Army officer is
the son of Colin Powell, now the secretary of state.
Insiders suggest that Chairman Powell will step away from the FCC after the
presidential election.
[SOURCE: Wall Street Journal, AUTHOR: Anne Marie Squeo at
annemarie.squeo( at )wsj.com]
http://online.wsj.com/article/0,,SB108932376100259068,00.html?mod=todays...
(requires subscription)

SENATORS BACK ADELSTEIN
Sens John McCain (R-AZ), Byron Dorgan (D-ND), Ernest Hollings (D-SC),
Conrad Burns (R-MT), and Daniel Inouye (D-HI) have written President Bush
asking him to renominate Jonathan Adelstein to a second term on the FCC. "A
significant number of issues critical to American consumers are pending
before the Commission. We need someone with his knowledge and experience on
the job at the FCC," they wrote, asking for word on the status of the
nomination. Senate Minority Leader and Commissioner Adelstein's former
boss, Tom Daschle (D-SD), submitted his name for renomination a year ago,
but the White House has not yet sent it to the Senate. If the White House
fails to act, Commissioner Adelstein would have to leave at the end of the
current legislative session, which could be as soon as October.
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
http://www.broadcastingcable.com/article/CA434763?display=Breaking+News
(requires subscription)

MEDIA

FTC FILES REPORT ON HOLLYWOOD
The Federal Trade Commission issued its fourth report since 2000 on
entertainment violence; the results are mixed. The FTC credited studios,
music labels and video game makers for better following self-imposed
guidelines, including clamping down on the sale of R-rated movie tickets to
underage teens and providing better rating information to parents. But the
commission also faulted them for continuing to "advertise violent and
explicit movies, games and music in media widely watched by teens." It also
chided the online music business for being lax in keeping children from
downloading songs with explicit lyrics
[SOURCE: Los Angeles Times, AUTHOR:Richard Verrier]
http://www.latimes.com/business/printedition/la-fi-ftc9jul09,1,5393822.s...
(requires registration)

MITCHELL DEFENDS PBS PATH
The Motion Picture Association of America and Public Broadcasting Service
President Pat Mitchell flirted, but did not wed. Now Ms. Mitchell is trying
to convince PBS stations that she is "thrilled, excited, passionate and
committed to be here." PBS faces a budget crisis, increased competition
from cable and pressure from a Republican-controlled Congress. Ms. Mitchell
said to solve the crisis, PBS plans will rely less on affiliate station
dues and more on self-financing independent producers and on donations made
through its new NPR-style foundation. Recently, stations nearly revolted
after PBS attempted to raise dues by 7.5 percent. Critics say the
traditionally progressive-minded institution is trying to appease
Republican congressional critics by launching a show hosted by conservative
commentator Tucker Carlson. Ms. Mitchell countered that PBS is simply
trying to broaden its audience.
[SOURCE: TelevisionWeek]
http://www.tvweek.com/news/web070804.html#mitchell

INTERNET

INTERNET AS UNIQUE NEWS SOURCE
New research by the Pew Internet Project shows that during some of the most
turbulent weeks of the Iraq war nearly one quarter of Internet users (24%)
went online to view some of most graphic war images that were deemed too
gruesome or horrific for newspapers and television to display. Further, of
those who have seen the images, 28% actively sought them out. Overall,
however, Americans are conflicted about the idea of these disturbing images
being available online. By a 49%-40% margin, Americans disapprove of the
posting of such images. A strong cultural divide emerges between Internet
users and non-users: Internet users approve of the images being online by a
small margin of 47% - 44%, while non-users disapprove by an overwhelming
58% - 29% margin. The horrific nature of many of the war-related images
that have appeared online have left Internet users with a range of
feelings. "Millions of Internet users want to be able to view the graphic
war images and they see the Internet as an alternative source of news and
information from traditional media," said Deborah Fallows, Senior Research
Fellow at the Project, and co-author of the report. "But many who do
venture outside the traditional and familiar standards of the mainstream
news organizations to look at the images online end up feeling very
uncomfortable."
[SOURCE: Pew Internet & American Life Project]
http://www.pewinternet.org/PPF/r/87/press_release.asp

STUDY: BROADBAND MARKET TO TRIPLE BY 2008
The Yankee Group is estimating that by 2008 there will be 325 million
broadband subscribers worldwide. About 200 million subscribers will be
using DSL service, up significantly from the 85 million people expected to
be using that technology by the end of 2004. DSL is expected to add between
25 million and 30 million subscribers per year, while rival cable modem
technology will account for around 8 million new subscribers annually. In
North America, though, cable service will maintain its lead, growing from
34 million at the end of last year to about 75 million in 2008. Satellite
is expected to experience strong growth, also. By 2008, it's expected to
have more than 12 million subscribers, or 4 percent of the market.
[SOURCE: C-Net|News.com, AUTHOR: Dinesh Sharma]
http://news.com.com/Study%3A+Broadband+market+to+triple+by+2008/2100-103...
--------------------------------------------------------------
Have a great weekend. We'll see you again Monday.
--------------------------------------------------------------
Communications-related Headlines is a free online news summary service
provided by the Benton Foundation (www.benton.org). Posted Monday through
Friday, this service provides updates on important industry developments,
policy issues, and other related news events. While the summaries are
factually accurate, their often informal tone does not always represent the
tone of the original articles. Headlines are compiled by Kevin Taglang
(headlines( at )benton.org) -- we welcome your comments.
--------------------------------------------------------------

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

MEDIA & POLITICS
Broadcasting & Hollywood Donors Favor Edwards
Cable Key to Broadcast Election Coverage

MEDIA POLICY
Media Reformers Look to Struggle Beyond Philadelphia
Michael Powell Lays an Egg
Interview with FCC Chairman Powell
EEO Audits Cleared
Cable to New Programmers: "We are the 'Gatekeepers,' so Drop Dead!"
Media Ownership Regulation Redux: A Reality Check

TELECOM
Nextel Spectrum Swap Nears FCC Decision
Congress Mulls New Net Phone Rules
IRS Eyes Net Phone Taxes

INTERNET
Web Spammers Can Be Beaten in Two Years -- Regulators
California Privacy Law Kicks In

INTELLECTUAL PROPERTY
Judiciary Gets Earful on Copyright

QUICKLY
FCC Extends Filing Periods for Two Media Policy Proceedings... & Appoints=
=20
Commissioner Robert Nelson (Mi PSC)
to serve on the Federal-State Joint Board on Universal Service
How to Build Open Information Societies
EFF Announces Ten Most-Wanted Patents

MEDIA & POLITICS

BROADCASTING & HOLLYWOOD DONORS FAVOR EDWARDS
We might not be the first outlet to tell you: Sen John Kerry picked Sen=20
John Edwards (NC) to be his running mate yesterday morning. How does this=20
play out vis-a-vis media policy? Glad you asked. The Center for Responsive=
=20
Politics reports that the retiring senator raised just a small fraction of=
=20
political donations from the communications sector, but much of this small=
=20
fraction came from mass media and high-tech firms. He won a number of "hard=
=20
money" donations from mass media executives, but didn't directly address in=
=20
his campaign the contentious issue of media ownership. He and Sen Kerry=20
missed a Sept. 2003 Senate floor vote that would have nullified the FCC=20
rules allowing more media consolidation. That motion of disapproval passed=
=20
55-40. Sens Kerry and Edwards voted in favor of the Bipartisan Campaign=20
Reform Act (BCRA) in 2002, a bill opposed by some in the broadcasting=20
community because of its restrictions on ads.
[SOURCE: Communications Daily, AUTHOR: Patrick Ross]
(Not available online)
What will the campaign web site be? Not KerryEdwards.com,=20
KerryEdwards04.com, KerryEdwards2004.com, or KerryEdwards-2004.com -- they=
=20
have all been registered by people outside Sen Kerry's campaign for=20
president. See who has the KerryEdwards URLs, what they are doing with them=
=20
and what they want for them.
[SOURCE: Washington Post, AUTHOR: David McGuire]
http://www.washingtonpost.com/wp-dyn/articles/A32602-2004Jul6.html
(requires registration)

CABLE KEY TO BROADCAST ELECTION COVERAGE
Once again, commercial broadcasters are telling federal policymakers, "The=
=20
future of free, over-the-air television is pay, cable TV." In a letter from=
=20
National Association of Broadcasters President Eddie Fritts to Senate=20
Commerce Committee Chairman John McCain (R-AZ) and FCC Chairman Michael=20
Powell, the lobbying group said the best way for the FCC and Congress to=20
boost broadcast public-affairs programming and election coverage is to=20
guarantee that cable systems have to carry all of a broadcaster's digital=20
signal, including the planned public-affairs programming on some of those=20
extra digital channels. Mr. Fritts also said that broadcasters already do=20
an "outstanding" job of covering campaigns, and argued, as the NAB=20
frequently has, that "politicians frequently reject the many offers from=20
local radio and television stations" for debates and other non-campaign ad=
=20
time.
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
http://www.broadcastingcable.com/article/CA434132?display=3DBreaking+News
(requires subscription)

MEDIA POLICY

MEDIA REFORMERS LOOK TO STRUGGLE BEYOND PHILADELPHIA
Media companies and their well-funded lobbyists in Washington aren't going=
=20
to roll over now that an appeals court has decided against rules allowing=20
more consolidation. The struggle now, according to reformers, is for=20
Americans at the grassroots level to demand a media system that ensures=20
diversity, local control and better service of the public interest. While=20
big media still exerts considerable influence over Washington policymaking,=
=20
this is a chance for media reformers to make the review process more open=20
to those beyond the beltway so that ordinary citizens can take a more=20
active role in the shaping of American media.
[SOURCE: MediaChannel.org AUTHOR: Timothy Karr]
http://www.mediachannel.org/views/dissector/affalert221.shtml

CHAIRMAN POWELL LAYS AN EGG
He's bright, personable, an excellent lawyer, a distinguished veteran, and=
=20
the son of the Secretary of State. Yet, Michael Powell's record as the=20
Chairman of the FCC has been one misstep and reversal after another. In=20
telecom and media regulation, his quest to "deregulate" has disintegrated=20
into a search for something -- anything! -- that will pass muster with the=
=20
courts, the Congress, and, most importantly, the American people. Now that=
=20
a U.S. Court of Appeals has tossed out the FCC's new rules that would have=
=20
exponentially increased media concentration and consolidation, Michael=20
Powell's tenure as Chairman, which so many expected would lead to him=20
becoming a star in Republican politics, has come up empty. How will=20
Chairman Powell be remembered? Probably not for the Commission's few=20
accomplishments during his tenure. Rather, he will more likely be=20
remembered for the tremendous opportunity he had to move communications=20
policy forward in this country while at the same time his own political=20
star ascended to the heavens. And how he squandered that opportunity. To=20
use the lingo of Daily Variety when a Broadway show flops, Michael Powell=20
has truly "laid an egg."
[SOURCE: MediaChannel.org AUTHOR: Jonathan Rintels, Executive Director of=20
the Center for Creative Voices in Media]
http://www.mediachannel.org/views/dissector/affalert220.shtml

INTERVIEW WITH FCC COMMISSIONER POWELL
Michael K. Powell, a Republican, was nominated 31 July 1997 as a member of=
=20
the FCC by President William J. Clinton and confirmed by the U.S. Senate on=
=20
28 October 1997. President George W. Bush appointed Powell chairman of the=
=20
FCC on 22 January 2001. Gartner Fellow Kenneth McGee met recently with=20
Chairman Powell in his Washington, DC, office to discuss issues and=20
policies concerning broadband, telecommunications, media ownership and=20
content issues and digital TV.
On Media ownership Powell said: Here's the truth: the ownership debate is=20
about nothing but content. Don't be fooled. I mean, this is my greatest=20
warning to the American public. It's easy to go after every ill in society=
=20
by claiming it's the media's fault. It's the American pastime, right?=20
Anything you don't like, it's the media's fault. What scared me in that=20
debate is that it's not about the ownership rules at all. The vast majority=
=20
of people don't even know what the rules say, to be perfectly candid. Name=
=20
all six of them. Name what they actually do. Nobody can. They became a=20
stalking horse for a debate about the role of media in our society. I can=20
expect and understand consumer anger and anxiety about that. But the=20
ownership rules are not the cause or the cure. It was really an invitation=
=20
for people with particular viewpoints to push for a thumb on the scale, for=
=20
content in a direction that people preferred. The danger with that? It's=20
easy to say, "I'm comfortable with that when the government's doing it for=
=20
something I like. But I get really scared when it's something I don't." And=
=20
what is juxtaposed against the media ownership debate? Indecency, which=20
maybe is what you mean by content. Hollywood was happy to beat up on=20
ownership liberalization because they want the government to intervene so=20
we can promote more independent programming =97 which is content. But the=20
same Hollywood says the government can't say that Howard Stern can't say=20
the F word, because that's censorship and inappropriate.
http://www4.gartner.com/research/fellows/asset_91308_1176.jsp
[SOURCE: Gartner, a provider of research and analysis on the global IT=20
industry]

EEO AUDITS CLEARED
The federal appeals court in Washington last week denied a petition by 45=20
state broadcaster associations that would have blocked the FCC from=20
auditing broadcast stations' and cable systems' compliance with new=20
minority- and gender-recruiting rules that require them to establish and=20
keep detailed records of their hiring-outreach programs. The FCC is also=20
working on finalizing the new recruiting rules, which were unveiled last=20
month. The new rules require broadcasters and cable systems to track and=20
report to the FCC the gender and ethnic data of their employee ranks. That=
=20
data will be used only to track industry trends--the FCC is forbidden from=
=20
using the information to judge whether individual stations are complying=20
with a requirement to conduct broad hiring outreach efforts. The biggest=20
open question is whether individual station data will be kept confidential.=
=20
The state broadcasters associations have asked that stations' data be kept=
=20
secret to prevent activist groups and individuals from using the=20
information in discrimination lawsuits. Public comment in this proceeding=20
is due July 29; reply comments are due August 9.
[SOURCE: Broadcasting&Cable, AUTHOR: Bill McConnell]
http://www.broadcastingcable.com/article/CA434216?display=3DBreaking+News
(requires subscription)

CABLE TO NEW PROGRAMMERS: "WE ARE THE 'GATEKEEPERS,' SO DROP DEAD!"
As a new national debate emerges over the failure of U. S. television=20
journalism to effectively report on key issues of concern it is time to=20
turn our attention to the narrow programming landscape of cable=20
television. Programmers who want to offer Americans services that provide=
=20
for independent points of view, have no chance of emerging on the=20
multi-channel dial (or the electronic program guide). Cable conglomerate=20
Comcast now controls the future of almost all potential new=20
programmers. As CableWorld magazine recently reported, "Comcast has become=
=20
the =85kingmaker, with the power to make or break a digital network. =
Without=20
a carriage commitment from Comcast, it is difficult for start-ups to raise=
=20
the investment capital they need." And as the article also makes clear,=20
Comcast is "not looking" to place any new channels on its systems. Four=20
"specific criteria" must be met before Comcast will "invest" in and carry a=
=20
programming service: "It needs to be unique to the channel lineup; it needs=
=20
to be inexpensive to program; it needs to appeal to a specific demographic;=
=20
and preferably that's a younger demographic, because it needs to make its=20
money on advertising revenue as opposed to relying heavily on affiliate=20
revenue." Given the hold that the gang of six media giants has over=20
broadcast, cable, and satellite programming, and the lack of opportunity=20
for real content diversity, it's time to address breaking up the TV=20
oligopoly. If the country is to have a serious independent press and in=20
order to foster a robust culture of ideas, breaking up big cable must be=20
high on the policy agenda.
[SOURCE: Center for Digital Democracy]
http://www.democraticmedia.org/news/marketwatch/needleye.html

MEDIA OWNERSHIP REGULATION REDUX: A REALITY CHECK
A forthcoming Cato Institute book "Media Myths: Making Sense of the Debate=
=20
over Media Ownership Regulation" provides the facts for Thierer's argument=
=20
that the Third Circuit Court of Appeals got it all wrong when overturning=20
the FCC's relaxation of media ownership rules. In sum, Thierer thinks there=
=20
are more than enough media outlets in the US to justify loosening ownership=
=20
restrictions. Look out for that coming book 'cause if something so dense=20
hits you in the head it could really hurt.
[SOURCE: Cato Institute, AUTHOR: Adam Thierer]
http://www.cato.org/tech/tk/040630-tk.html

TELECOM

NEXTEL SPECTRUM SWAP NEARS FCC DECISION
FCC Chairman Michael Powell and Commissioner Kathleen Abernathy have cast=20
votes in favor of the Nextel proposal and the proposal is expected to gain=
=20
the final vote it needs for approval. Nextel's future depends on moving to=
=20
less cluttered airwaves than those it now shares with police and fire=20
emergency communications across the country. But Nextel's competitors have=
=20
lobbied vigorously against the company's plan, and Verizon Wireless has=20
laid the groundwork to challenge it in court. Nextel has proposed=20
exchanging some of its existing airwaves and paying $850 million to=20
relocate public-safety groups and other, smaller private carriers to=20
clearer spectrum where cellular traffic won't interfere with=20
emergency-dispatch calls. Additionally, the company would be required to=20
set aside about $3 billion in case moving public-safety communications=20
costs more than $850 million. Any amount not used by public safety would be=
=20
returned to Nextel. Sen Frank Lautenberg (D-NJ) has asked the General=20
Accounting Office to review whether the FCC's spectrum-exchange proposal=20
violates federal laws against the private sale of public resources.
[SOURCE: Washington Post, AUTHOR: Yuki Noguchi]
http://www.washingtonpost.com/wp-dyn/articles/A32610-2004Jul6.html
(requires registration)
Additional coverage in USAToday
http://www.usatoday.com/usatonline/20040707/6345790s.htm

CONGRESS MULLS NEW NET PHONE RULES
Reps. Rick Boucher (D-VA) and Cliff Stearns (R-FL) are introducing=20
legislation aim at giving the FCC, not state regulators, the power to=20
oversee rules regarding phone calls made over the Internet. would=20
potentially increase the amount that customers pay for certain VoIP=20
services by importing a handful of controversial taxes and regulations from=
=20
the analog world. (Neither the states nor the FCC, however, would be able=20
to directly set prices or rates for VoIP service.) Under the bill, Rep=20
Boucher said, the FCC would have the option to regulate three key areas for=
=20
VoIP companies that link with traditional phone networks. The three areas=20
are enhanced 911, universal service, and access charges. Rep. Charles=20
Pickering (R-MS) and Sen. John Sununu (R-NH) also have introduced bills=20
related to VoIP. The Boucher-Stearns bill is numbered HR4757. The House=20
telecommunications subcommittee plans to hold a hearing Wednesday titled=20
"VoIP: Will the Technology Disrupt the Industry or Will Regulation Disrupt=
=20
the Technology?"
[SOURCE: C-Net|News.com, AUTHOR: Declan McCullagh]
http://news.com.com/Congress+mulls+new+Net+phone+rules/2100-7352_3-52581...
tml?tag=3Dnefd.top

IRS EYES NET PHONE TAXES
On Friday (while you were leaving the office early to drive to the beach),=
=20
the tireless IRS and Treasury Department were posting a notice announcing=20
they were considering applying an existing federal excise tax on phone=20
calls to voice over Internet Protocol (VoIP) calls, a move that echoes=20
similar attempts by state officials to tax or regulate the technology. The=
=20
3% excise tax is only temporary though... it was enacted in 1898 to help=20
pay for the Spanish-American war. "They're looking at VoIP and any other=20
potential technologies that are flying under the radar," said Glenn=20
Richards, a partner at Shaw Pittman in Washington who represents VoIP=20
companies. "Clearly they're trying to extend their jurisdiction to apply=20
the excise tax to as many 'calls' as they can. It's got to be a revenue=20
issue for them. If everyone starts migrating to new platforms, they're=20
facing a decrease in excise taxes." IRS spokeswoman Tara Bradshaw said that=
=20
the agency is in the "very beginning of the process" of updating its=20
regulations on what is covered by the tax code's definition of telephone=20
service. "We're just requesting information," she said. "We're not creating=
=20
new rules at this point. We're just requesting comments."
[SOURCE: C-Net|News.com, AUTHOR: Declan McCullagh]
http://news.com.com/IRS+eyes+Net+phone+taxes/2100-7352_3-5258809.html?ta...
nefd.lede

INTERNET

WE SPAMMERS CAN BE BEATEN IN TWO YEARS -- REGULATORS
Software makers and regulators have the means to bring spam under control=20
within two years, if they work together, say officials of the United=20
Nations' International Telecommunications Union (ITU) which is holding a=20
three-day meeting this week. The ITU says spam drains national economies=20
around the world of about $25 billion a year and estimates that lost=20
productivity -- through time wasted in clearing e-mail boxes -- could be=20
four times that amount. Officials said the conference would examine=20
legislation that could enable governments to crack down on Internet service=
=20
providers, or ISPs, who allow spammers to use their systems. International=
=20
cooperation would also enable regulators to assemble dossiers on companies=
=20
and individuals engaged in spamming or in "phishing" and provide the basis=
=20
for criminal prosecutions in the perpetrators' home countries.
[SOURCE: Reuters, AUTHOR: Robert Evans]
http://www.reuters.com/newsArticle.jhtml;jsessionid=3DIS3NYATRNDUDQCRBAE...
Y?type=3DinternetNews&storyID=3D5600362

CALIFORNIA PRIVACY LAW KICKS IN
The California Online Privacy Protection Act (OPPA) of 2003 went into=20
effect July 1. The legislation requires companies doing business with=20
Californians online to post a conspicuous privacy policy on their Web=20
sites, disclose the kinds of personally identifiable data that they collect=
=20
and share with third parties, clearly mark their privacy statements; abide=
=20
by their policies; inform consumers of processes to opt out of data=20
sharing; and publish a date it goes into effect. The statute is the first=20
of its kind in the nation. Privacy experts commended the new policy as=20
clear and easy to read.
[SOURCE: C-Net|News.com, AUTHOR: Stefanie Olsen]
http://news.com.com/California+privacy+law+kicks+in/2100-1028_3-5258824....
?tag=3Dnefd.top

INTELLECTUAL PROPERTY

JUDICIARY GETS EARFUL ON COPYRIGHT
Resistance is building to legislation co-sponsored by Senate Majority=20
Leader Bill Frist and Minority Leader Tom Daschle, would amend the=20
copyright act to make it a criminal offense to "intentionally aid, abet,=20
induce, or procure" copyright infringement. A group of computer companies,=
=20
fair-use advocates and electronics manufacturers has written the members of=
=20
the Senate Judiciary Committee to try to delay action on the bill. The bill=
=20
is backed by Hollywood, which is trying to protect its intellectual=20
property from easy digital pirating.
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
http://www.broadcastingcable.com/article/CA434212?display=3DBreaking+News
(requires subscription)
Hey, there's more!
CDT CALLS FOR HEARINGS ON COPYRIGHT INDUCEMENT BILL
The Center for Democracy and Technology sent a letter to Senators Hatch=20
(R-UT) and Leahy (D-VT) Tuesday calling for hearings on S. 2560, the=20
"Inducing Infringement of Copyright Act of 2004." While intended to=20
penalize bad actors who intentionally cause copyright infringement,=20
credible concerns have been raised about the bill's potential unintended=20
consequences for valuable technologies.
[SOURCE: Center for Democracy and Technology]
http://www.cdt.org/copyright/20040706cdtletter.pdf
Consumers Union also sent a letter to the Senate about the bill, see
http://www.consumersunion.org/pub/core_telecom_and_utilities/001218.html...
e

QUICKLY

On May 27, the FCC began a factual inquiry into the households that rely=20
exclusively on over-the-air broadcasting for their television service and=20
how to minimize adverse impacts on all households in the transition to=20
digital television. The Commission recently extended the filing period for=
=20
the proceeding. Comments are now due August 11 and the date for filing=20
reply comments has been extended until September 7, 2004.
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DA-04-2002A1.doc

On May 25, 2004, the FCC began an inquiry regarding the provision of a la=20
carte and "themed-tier" services on cable television and direct broadcast=20
satellite systems. Comments in the proceeding are now due July 15; reply=20
comments are due July 30, 2004.

The FCC has appointed Robert Nelson, Commissioner of the Michigan Public=20
Service Commission, to serve on the Federal-State Joint Board on Universal=
=20
Service. Mr Nelson can be contacted at the Michigan PSC, 6545 Mercantile=20
Way Lansing, Michigan 48911. [Go Lugnuts!]

How to Build Open Information Societies: A collection of best practices and=
=20
know-how from Europe and CIS
This publication presents a collection of knowledge-based best practices=20
accumulated by the United Nations Development Program (UNDP) in Europe and=
=20
the Commonwealth of Independent States (CIS). Its main purpose is to=20
identify and share UNDP's know-how by showing how ICT can promote=20
socio-economic development and good governance. Case studies and examples=20
from 19 countries illustrate different e-governance programmes and=20
applications - from a diverse range of initiatives including support for=20
policy formulation, customs reform, youth sexual education, rural=20
deployment of ICTs and training, country database building, and others.
Available free via the online bookstore at UNDP Eastern Europe and CIS=20
Sub-regional Resource Facility:
http://www.ecissurf.org/index.cfm?module=3DBookStore&page=3DBook&BookID=...

EFF Announces Ten Most-Wanted Patents
The Electronic Frontier Foundation's Patent Busting Project announced which=
=20
patents the organization will target first in its campaign to rid the world=
=20
of frivolous patent infringement lawsuits. After sifting through dozens of=
=20
software and Internet-related patents submitted to its patent busting=20
contest, EFF targeted ten whose crimes have made them enemies of the public=
=20
domain. All the most-wanted patents are dangerously overbroad; many pose a=
=20
threat to freedom of expression online. And every single one of the=20
targeted patents is held by an entity that has threatened or brought=20
lawsuits against small businesses, individuals, or nonprofits.
[SOURCE: Electronic Frontier Foundation Press Release]
http://www.eff.org/news/archives/2004_06.php#001665
Ten "most wanted" patents
http://www.eff.org/patent/wanted
--------------------------------------------------------------
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.
--------------------------------------------------------------