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Benton's Communications-related Headlines for 10/19/04

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

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

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

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

TV & ELECTIONS

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

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

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

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

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

MEDIA

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

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

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

QUICKLY

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

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

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

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

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

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

TV: SAVING ONE LIFE AT A TIME
On Oct. 2, a contingent of police, civil air patrol and search-and-rescue=20
personnel responded to an international distress signal picked up by=20
satellite and routed to the Air Force Rescue Center at Langley Air Force=20
Base in Virginia. They expected to find a boat or small plane with a=20
malfunctioning transponder. Instead they found a college student watching=20
his new Toshiba flat-screen television. "They'd never seen a signal come=20
that strong from a home appliance," said the student quite surprised. I=20
think we all were." The situation grew serious when the student was told to=
=20
keep his TV off to avoid paying a $10,000 fine for "willingly broadcasting=
=20
a false distress signal." Luckily, Toshiba contacted van Rossmann and=20
offered to provide him with a free replacement set.
http://www.washingtonpost.com/wp-dyn/articles/A43211-2004Oct18.html
--------------------------------------------------------------
Communications-related Headlines is a free online news summary service=20
provided by the Benton Foundation (www.benton.org). Posted Monday through=20
Friday, this service provides updates on important industry developments,=20
policy issues, and other related news events. While the summaries are=20
factually accurate, their often informal tone does not always represent the=
=20
tone of the original articles. Headlines are compiled by Kevin Taglang=20
(headlines( at )benton.org) -- we welcome your comments.
--------------------------------------------------------------

Benton's Communications-related Headlines for 10/18/04

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

MEDIA & ELECTIONS
Drama Over a Documentary
'Balance' in a Spinning World
Better Late Than Wrong
Pollsters Can't Just Phone It In

BROADCASTING
Barton's Opening Shot
HDTV's Copy-Protection Prison
Activists Weigh In on Restricting TV Violence
Stern's Critics May Not Be Done
Entercom Faces $55K Fine for Indecency
FCC Should Clarify Affiliate Rights, Protect Spectrum Licenses, Martin Says
Pubradio Eyes Dozens of Channels in FCC Auction Nov 3

TELECOM QUICKLY
FCC Veterans Differ on Agency Reform
Rural Internet Funds Go to Texas Commuter Towns
Intermodal Competition: Are We There Yet?
Radio Operators OK Rules on Net Over Power Lines
Wireless Broadband Model Communities in Rural America
Eligible Services List for Schools and Libraries Universal Service=
Mechanism
NTIA Supports FCC's Broadband Actions

MEDIA & ELECTIONS

DRAMA OVER A DOCUMENTARY
Understandably, there's lots of coverage of the Sinclair/Stolen Honor=20
situation in the trade press. We'll summarize it here under the title of an=
=20
interview with Sinclair's Mark Hyman and provide links to stories below. On=
=20
Friday, the Kerry campaign asked Sinclair Broadcasting for time to respond=
=20
to the documentary on all the stations that air it. Even before Sen. John=20
Kerry (D-MA) requested this time, Hyman told B&C that having Sen Kerry=20
appear in a controversial broadcast was the plan all along. =93We told Kerry=
=20
before we produced anything that we wanted his participation, and we sent=20
him a copy of the documentary,=94 said Hyman. =93We were quietly waiting for=
=20
his campaign to get back to us and tell us what he wanted to do when the=20
L.A. Times story appeared.=94 Hyman thinks getting Kerry to appear on=20
Sinclair stations would be a great "get" since Kerry has not had a sit-down=
=20
interview with any news organization since the Democratic convention. Hyman=
=20
said airing the documentary special close to the election was not a blatant=
=20
attempt to hurt Kerry: =93Under that standard, every single news report of=
=20
bombings in Iraq or the death of a soldier or stories of economic=20
performance that is weaker than expected should be considered an in-kind=20
contribution to John Kerry.=94 But why air the program so close to the=20
elections? Hyman said the veterans interviewed in Stolen Honor did not come=
=20
forward until August. =93According to the filmmaker [Carlton Sherwood], none=
=20
of the big broadcast networks wanted to speak with him,=94 Hyman said.=20
=93That=92s why he went shopping for other venues. We did our due diligence=
on=20
his film and saw something to it.=94
The link to the NYTimes story below offers a long article hitting on the=20
political, legal and financial implications of Sinclair's decision.
[SOURCE: Broadcasting&Cable, AUTHOR: Bill McConnell]
http://www.broadcastingcable.com/article/CA472537.html?display=3DTop+of+...
Week&referral=3DSUPP
Kerry Camp Wants Equal Time
[SOURCE: Broadcasting&Cable]
http://www.broadcastingcable.com/article/CA472552.html?display=3DBreakin...
ws&referral=3DSUPP
Honoring an Invite
http://www.broadcastingcable.com/article/CA472609?display=3DBreaking+New...
ferral=3DSUPP
(free access for Benton's Headlines subscribers)
Kerry Requests Response Time to Sinclair Film
[SOURCE: TVWeek, AUTHOR: Doug Halonen]
http://www.tvweek.com/news.cms?newsId=3D6534
Risks Seen For TV Chain Showing Film
[SOURCE: New York Times, AUTHOR: Bill Carter]
http://www.nytimes.com/2004/10/18/business/media/18sinclair.html
(requires registration)

'BALANCE' IN A SPINNING WORLD
Journalists are the last line of defense against public deception. But when=
=20
journalists detect deception in a political campaign, should they also be=20
deciding which politician's deceits are worse? In articles, columns and one=
=20
internal ABC News memo, some journalists have argued that President Bush=20
has engaged in far more serious distortions than Sen Kerry has, and that=20
media outlets should blow the whistle on these falsehoods. "Your instinct=20
is that if we say bad things about one side you have to say bad things=20
about the other side," says Adam Nagourney, the New York Times's chief=20
political reporter. "You want to give equal scrutiny to both sides, but I=20
don't think you should impose a false equivalence that doesn't exist." The=
=20
Bush team, which issued a release slamming a recent Nagourney story, is=20
pushing back. "The Bush campaign should be able to make an argument without=
=20
having it reflexively dismissed as distorted or inaccurate by the biggest=20
papers in the country," says spokesman Steve Schmidt. At issue is how far=20
reporters should go in analyzing the candidates' attacks and ads,=20
especially if one side is using a howitzer and the other a popgun. Mark=20
Halperin, ABC's political director, fueled the debate with a memo that=20
leaked to the Drudge Report. "Kerry distorts, takes out of context, and=20
[makes] mistakes all the time, but these are not central to his efforts to=
=20
win," Halperin wrote. While both sides should be held accountable, "that=20
doesn't mean we reflexively and artificially hold both sides 'equally'=20
accountable when the facts don't warrant that." Complaints by the Bush=20
camp, Halperin said, are "all part of their efforts to get away with as=20
much as possible with the stepped-up, renewed efforts to win the election=20
by destroying Senator Kerry at least partly through distortions."
[SOURCE: Washington Post, AUTHOR: Howard Kurtz]
http://www.washingtonpost.com/wp-dyn/articles/A40668-2004Oct17.html
(requires registration)

BETTER LATE THAN WRONG
Network television does not want to repeat the mistakes of 2000, calling=20
state races before they were decided. So in 2004, networks are putting a=20
premium on being right instead of being first. When attempts to repair the=
=20
patchwork of technology known as the Voter News Service failed in midterm=20
elections of 2002, VNS was disbanded and succeeded by the National Election=
=20
Pool, which is run by the same consortium of ABC News, CBS News, CNN, Fox=20
News, NBC News and the Associated Press. The AP will be doing all the raw=20
vote collection and tabulation.
[SOURCE: TVWeek, AUTHOR: Michele Greppi]
http://www.tvweek.com/article.cms?articleId=3D26237

POLLSTERS CAN'T JUST PHONE IT IN
[Commentary] Changes in communications technology make it increasingly=20
difficult to construct a truly representative sample. Until recently, for=20
instance, it was safe to say that virtually every home in America had a=20
telephone, so polls conducted by phone have been seen as a reliable way to=
=20
give every household an equal chance of being surveyed. But now, there's a=
=20
category of people =97 mostly younger people and renters =97 who have=20
cellphones but no land lines. Federal law makes it illegal to survey=20
cellphones without consent if phone owners pay for calls they receive.=20
Pollsters don't want to endanger people who may be driving cars. And with=20
portability of numbers, you never know if a cellphone's area code actually=
=20
reflects where the owner lives. As a result, an entire category of people=
=20
=97 we can call them CPOs, for "cellphone only" =97 are missing from=
surveys.=20
Does it matter? Probably not this year, because CPOs constitute only an=20
estimated 4% to 7% of the population right now. But if there were a huge,=20
unexpected surge of voting by CPOs in, say, swing states like Ohio with big=
=20
college student populations, they could have an effect not reflected in the=
=20
polls. Voila: Truman beats Dewey.
[SOURCE: Los Angeles Times, AUTHOR: Philip J. Trounstine, Director of=20
the Survey and Policy Research Institute at San Jose State University]
http://www.latimes.com/news/printedition/opinion/la-oe-trounstine18oct18...
031473.story?coll=3Dla-news-comment
(requires registration)

BROADCASTING

BARTON'S OPENING SHOT
House Commerce Committee Chairman Joe Barton will wage his first battle=20
against broadcasters as early as next month when he pushes his plan to take=
=20
back TV stations' old analog channels by the end of 2006. If Congress takes=
=20
no action on reclaiming analog channels, stations won't be required to=20
return the frequencies until 85% of TV households are equipped to receive=20
DTV signals, which could add years, even decades to the transition. Rep=20
Barton argues that broadcasters will be better off in the long run if=20
channels aren't reclaimed piecemeal, as the Senate has voted to do. "We can=
=20
turn spectrum over to public safety sooner, and all broadcasters will be=20
able to move to their final digital channels," he told colleagues during=20
statement on the House floor Oct. 8. Broadcasters' allies in Congress will=
=20
warn against a swift transition resulting in many consumers losing their=20
television service. The battle for the channels will resume either after=20
the election, when Congress returns for a lame-duck session, or in the 2005=
=20
Congress.
[SOURCE: Broadcasting&Cable, AUTHOR: Bill McConnell]
http://www.broadcastingcable.com/article/CA472547?display=3DWashington&r...
ral=3DSUPP
(free access for Benton's Headlines subscribers)

HDTV'S COPY-PROTECTION PRISON
[Commentary] A look at the problems with recording high-definition, digital=
=20
TV content. For example, when equipped with a digital tuner,=20
Microsoft's Media Center can show and record HD programming, but only from=
=20
local broadcast stations -- no ESPN, no HDNet, no HBO. The difficulty is=20
with the unsettled state of copy protection for HD programming rather than=
=20
any technical issue. Until now, HD content has been sent out unprotected=20
over cable and satellite systems. With some new Federal Communications=20
Commission rules in place and equipment capable of recording HD video=20
hitting the market, content owners are starting to apply protection -- but=
=20
the hardware and software needed to allow video recorders to comply with=20
the protection schemes aren't ready.
[SOURCE: BusinessWeek, AUTHOR: Stephen H. Wildstrom]
http://www.businessweek.com/technology/content/oct2004/tc20041015_4243_t...
.htm

ACTIVISTS WEIGH IN ON RESTRICTING TV VIOLENCE
The Center for Creative Voices in Media, the Caucus for Television=20
Producers, Writers & Directors, and children=92s TV activist Peggy Charren=
=20
have told the FCC it should embark on a public education campaign to=20
promote healthy viewing habits instead of restricting violent programming.=
=20
"Censorship should always be a very, very last resort, not a first resort,=
=94=20
the groups wrote in comments filed with the FCC Friday. Instead, the FCC=20
should encourage parents and TV programmers take to responsibility for what=
=20
kids watch on TV. For instance, FCC education campaigns modeled after a new=
=20
effort to promote digital television could educate the public and the TV=20
industry on the danger =93gratuitous violence=94 does to children. Other=20
suggestions include a media-literacy drive to promote critical thinking=20
about media messages, as well as promotion of the V-chip channel-blocking=20
device and parental controls available from cable and DBS operators. The=20
group also called on the FCC to promote the =93Healthy Media, Healthy=20
Children=94 program that members of Congress and private executives are=20
sponsoring to identify research examining the impact of violent programs in=
=20
kids.
[SOURCE: Broadcasting&Cable, AUTHOR: Bill McConnell]
http://www.broadcastingcable.com/article/CA472559?display=3DBreaking+New...
ferral=3DSUPP
(free access for Benton's Headlines subscribers)
See the filing at:
http://www.creativevoices.us/cgi-upload/news/news_article/CCVMViolencePa...
e101504.PDF

STERN'S CRITICS MAY NOT BE DONE
Howard Stern may be taking his radio show to satellite radio, but "If the=20
neoconservatives in government really want him, I think Howard Stern would=
=20
have to move to Mars" to continue his shtick, said Deborah A. Lathen,=20
former head of the cable services bureau at the FCC. Stern's shift to=20
satellite radio has provided a new arena -- and new fuel -- for activists=20
in and out of government who have argued that subscription services, namely=
=20
cable and satellite television, need tighter regulation because of=20
increasingly racy programming. FCC Chairman Michael Powell and some Members=
=20
of Congress has suggested the FCC's authority needs to be expanded to hold=
=20
pay and free TV and radio to the same standards. "We would challenge any=20
effort like that, and I think the courts would strike it down," said Andrew=
=20
Jay Schwartzman, president of the Media Access Project, a watchdog group in=
=20
Washington. Robert P. Corn-Revere, a noted 1st Amendment lawyer in=20
Washington, says broadcasting is treated differently because it can be=20
readily accessed by children and other protected groups. "I don't think=20
it's likely the courts would uphold" indecency legislation or regulation=20
targeting subscription services, he said. "Congress has already gone after=
=20
indecency on the Internet, even though the courts have struck them down=20
several times," said Adam D. Thierer, director of telecommunications=20
studies at the Cato Institute in Washington. "You can bet your bottom=20
dollar, if they can find a rationale to regulate the Internet, they will=20
try to regulate paid subscription services."
[SOURCE: Los Angeles Times, AUTHOR: Jube Shiver Jr]
http://www.latimes.com/business/printedition/la-fi-sternfcc18oct18,1,464...
.story?coll=3Dla-headlines-pe-business
(requires registration)
Also see commentary from Dan Gillmor on Stern's move --
Stern's Declaration of Independence Good for Radio, and For Us
[SOURCE: San Jose Mercury News, AUTHOR:Dan Gillmor]
http://www.mercurynews.com/mld/mercurynews/business/technology/9942401.htm

ENTERCOM FACES $55K FINE FOR INDECENCY
On Friday, the FCC fined Entercom Communications station KRXQ(FM)=20
Sacramento (CA) $55,000 for two indecent broadcasts aired on the Rob, Arnie=
=20
& Dawn in the Morning show in 2002 and 2003. The URL below includes a=20
description of the programming content -- click through at your own risk.=20
For each of the broadcasts, KRXQ was fined the $27,500 maximum per incident=
=20
because of the =93egregious=94 nature of the violations and because Entercom=
=20
has been punished for indecency violations in the past.
[SOURCE: Broadcasting&Cable, AUTHOR: Bill McConnell]
http://www.broadcastingcable.com/article/CA472569.html?display=3DBreakin...
ws&referral=3DSUPP
(free access for Benton's Headlines subscribers)
See FCC press release at
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-253161A1.doc

FCC SHOULD CLARIFY AFFILIATE RIGHTS, PROTECT SPECTRUM LICENCES, MARTIN SAYS
In the wake of the Married By America fine, the FCC should act on the=20
three-year old Network Affiliated Stations Alliance petition to clarify the=
=20
rights of network affiliates, said Commissioner Kevin Martin. Many stations=
=20
do not get time to preview programming before it is aired and may end up=20
being fined for airing indecent programs they have never seen. Commissioner=
=20
Martin also said last week that the FCC should tread with care as it pushes=
=20
for greater use of unlicensed devices in areas of the spectrum
already occupied by licensed users. "Licensed users have legitimate=20
expectations of protection against interference. According to that we need=
=20
to be cautious about mandating interference temperature concepts in their=20
bands and careful in our decision-making.=94
[SOURCE: Communications Daily, AUTHOR: Tania Panczyk-Collins, Howard=
Buskirk]
(Not available online)

PUB RADIO EYES DOZENS OF CHANNELS IN FCC AUCTION NOV 3
Noncommercial stations are bidding for radio frequencies in a FCC auction=20
that starts next month. They will be up against both religious and=20
commercial broadcasters for the 290 non-reserved FM frequencies in 37=20
states. Most of the licenses are in small towns and the pubcasters are=20
hoping to bring service where none or few are delivered now. Noncommercial=
=20
stations have never participated in an auction like this before. The FCC=20
let them participate under controversial rules issued in April 2003 after=20
three years of deliberation.
[SOURCE: Current, AUTHOR: Mike Janssen]
http://www.current.org

TELECOM QUICKLY

FCC VETERANS DIFFER ON AGENCY REFORM
Progress and Freedom Foundation Senior Fellow Randolph May suggested that=20
the FCC should be reduced and be made part of the executive branch. But=20
other former FCC leaders said such a move would be dangerous. As is, the=20
FCC is "wholly accountable to Congress," said former Commissioner Susan=20
Ness. Five years ago, then-FCC Chairman Bill Kennard suggested the agency=20
focus on functions rather than "stovepipes." Regardless of the structure of=
=20
the agency, there was a consistent call for less regulation in the face of=
=20
increasing competition. One person went as far to suggest elimination of=20
the FCC. Ness countered that =93if you abolish the FCC, guess what you've=20
got? Fifty state commissions=94 looking to regulate communications without=
=20
federal preemption.
[SOURCE: Communications Daily, AUTHOR: Patrick Ross]
(Not available online)

RURAL INTERNET FUNDS GO TO TEXAS COMMUTER TOWNS
In 2000, Congress created a Department of Agriculture loan program to help=
=20
rural areas, including communities of less than 20,000 people, to gain=20
Internet access. But apparently a $22.7 million loan was made to ETS=20
Telephone & Subsidiaries, a Houston firm that advertises itself as=20
providing telecommunications for "quality master-planned communities"=20
including communities in Rep Tom DeLay's district. Some of the seven=20
communities affected by the loan have golf courses and houses selling for=20
$125,000 to $1 million, according to the Fort Worth Star-Telegram=20
newspaper. Rep Nancy Pelosi (D-CA) said the loan was "one more example of=20
the Bush Administration's willingness to rain down gifts on the wealthy=20
while leaving hard-working rural Americans high and dry." The ETS project=20
qualified, a USDA official said, because it was in a traditionally=20
agricultural area and met the population limits.
[SOURCE: Reuters, AUTHOR: Charles Abbott]
http://www.reuters.com/newsArticle.jhtml?type=3DtopNews&storyID=3D6506640

INTERMODAL COMPETITION: ARE WE THERE YET?
[Commentary] Do the owners of broadband networks -- telecos, cable=20
operators and, soon, power companies -- compete against eachother enough to=
=20
get the government out of telephony regulation? If it did, the remaining=20
small competitors would soon die off. If they do, it will be interesting to=
=20
see how policymakers frame the competition question. Yes, there are several=
=20
ways to get broadband, and more appear to be on the horizon. And if you=20
have broadband, you have the infrastructure necessary to use one of many=20
voice-over-IP services. So there's obviously plenty of voice competition,=20
right? Projecting competition is not something policymakers normally do;=20
instead, they usually like to see full-fledged competition before=20
deregulating. Intermodal alternatives are in their infancy. The only real=20
mature voice alternative is mobile voice, and consumer groups already are=20
angered by the fact that RBOCs will own at least 70% of that market after=20
the Cingular-AT&T Wireless merger is approved. Jackson concludes: Will=20
policymakers be willing to accept the promise of intermodal competition and=
=20
deregulate the Baby Bells? Normally, I'd doubt it. But, with the promise of=
=20
ten of billions in economy-driving investment riding on the decision, I=20
wouldn't bet against it -- especially if they can figure a way to do it=20
without hurting the budgets of state and local governments that depend on=20
telecom taxes.
[SOURCE: Telephony's Regulatory Insider, AUTHOR: Donny Jackson=20
djackson( at )primediabusiness.com]

RADIO OPERATORS OK RULES ON NET OVER POWER LINES
The American Radio Relay League (ARRL), which has been the loudest critic=20
against broadband over power lines (BPL) on Friday said recent decisions on=
=20
the technology by the FCC were a step in the right direction. Ham radio=20
operators have complained that BPL services disrupt their own signals as=20
well as those of public safety organizations. "We'll remain concerned about=
=20
pollution interference," said ARRL spokesman Alan Pitts. "But the glass is=
=20
both half-full and half-empty." In trying to address this issue, the FCC on=
=20
Thursday outlined rules to prevent power-line access from disrupting=20
important signals. These rules include barring BPL from certain frequencies=
=20
commonly used by airplanes and excluding services from zones near Coast=20
Guard and radio astronomy stations. BPL providers must provide a public=20
database of complaints from organizations whose signals were corrupted.
[SOURCE: C-Net|News.com, AUTHOR: Jim Hu]
http://news.com.com/Radio+operators+OK+rules+on+Net+over+power+lines/210...
34_3-5412115.html?tag=3Dnefd.hed

WIRELESS BROADBAND MODEL COMMUNITIES IN RURAL AMERICA
On Friday, the FCC's Wireless Telecommunications Bureau (WTB) launched the=
=20
Rural Wireless Community VISION Program to advance the deployment of=20
broadband wireless telecommunications across rural America. The VISION=20
Program will harness synergies between WTB and the Department of=20
Agriculture's Rural Utilities Service (RUS) to develop model rural=20
communities using the two agencies' experts in engineering, technical,=20
project finance, and other practical aspects of launching wireless=20
broadband services. Rural communities will be selected as participants in=20
the VISION Program based on an essay describing their community's vision=20
for wireless connectivity and services and how the community will benefit=20
from the implementation of this vision. WTB staff working in cooperation=20
with RUS financial loan-grant officers and regional field representatives=20
will work on-site with community and business leaders to assist the=20
deployment of wireless broadband in the community. Applications for the=20
assistance available through the VISION program for the first quarter of=20
2005 are due on December 1, 2004. More information on the Rural Wireless=20
Community VISION Program, including program information, essay guidelines,=
=20
and applications are available on-line at=20
http://wireless.fcc.gov/outreach/ruralvision/index.html. The program is=20
open to any rural community in the United States and its territories.
[SOURCE: FCC]
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-253198A1.doc

ELIGIBLE SERVICES LIST FOR SCHOOLS AND LIBRARIES UNIVERSAL SERVICE MECHANISM
To promote greater transparency of what is eligible for support under the=20
schools and libraries support mechanism, the FCC adopted a rule that=20
formalizes the process for updating the eligible services list, beginning=20
with Funding Year 2005. The list is available at the URL below.
[SOURCE: FCC]
http://hraunfoss.fcc.gov/edocs_public/attachmatch/FCC-04-244A1.doc

NTIA SUPPORTS FCC'S BROADBAND ACTIONS
Statement by Assistant Secretary Michael D. Gallagher: The President's goal=
=20
of universal, affordable access to broadband for all Americans by 2007=20
moved three giant steps closer today when the FCC voted to allow a third=20
broadband wire into American homes, acted to clear 45 MHz of spectrum for=20
commercial uses, and also clarified the obligations of existing fiber=20
carriers. The Commission's actions today open the door to new market=20
entrants competing with innovative new technologies, and at the same time=20
provide regulatory clarity to existing competitors.
[SOURCE: National Telecommunications and Information Administration]
http://www.ntia.doc.gov/ntiahome/press/2004/broadband_10142004.html
--------------------------------------------------------------
Communications-related Headlines is a free online news summary service=20
provided by the Benton Foundation (www.benton.org). Posted Monday through=20
Friday, this service provides updates on important industry developments,=20
policy issues, and other related news events. While the summaries are=20
factually accurate, their often informal tone does not always represent the=
=20
tone of the original articles. Headlines are compiled by Kevin Taglang=20
(headlines( at )benton.org) -- we welcome your comments.
--------------------------------------------------------------

Benton's Communications-related Headlines for 10/15/04

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

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

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

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

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

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

MORE ON SINCLAIR

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

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

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

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

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

BROADCASTING/TELEVISION

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

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

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

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

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

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

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

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

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

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

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

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

TELECOM

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

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

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

QUICKLY

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

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

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

FEWER WOMEN IN COMPUTER JOBS THESE DAYS
A study released Wednesday by the Commission on Professionals in Science=20
and Technology found a decline in the share of computer science jobs held=20
by women in a recent 20-year period. In 1983, women held 30.5% of the jobs=
=20
in the category of computer systems analysts and scientists, programmers=20
and postsecondary computer science teachers, according to the commission.=20
That figure declined to 27.2% in 2002.
For more info, see CPST's Press release=20
http://www.cpst.org/STEM/STEM2_Press.doc and report=20
http://www.cpst.org/STEM_Report.cfm
[SOURCE: C-Net|News.com, AUTHOR: Ed Frauenheim]
http://news.com.com/Fewer+women+in+computer+jobs+these+days/2100-1022_3-...
551.html?tag=3Dnefd.hed
--------------------------------------------------------------
...and we're outta here. Have a great weekend!
--------------------------------------------------------------
Communications-related Headlines is a free online news summary service=20
provided by the Benton Foundation (www.benton.org). Posted Monday through=20
Friday, this service provides updates on important industry developments,=20
policy issues, and other related news events. While the summaries are=20
factually accurate, their often informal tone does not always represent the=
=20
tone of the original articles. Headlines are compiled by Kevin Taglang=20
(headlines( at )benton.org) -- we welcome your comments.
--------------------------------------------------------------

Benton's Communications-related Headlines for 10/14/04

The FCC's Open Meeting this morning will be available at=20
http://www.fcc.gov/realaudio/. For upcoming media policy events, see=20
http://www.benton.org/calendar.htm

MORE ON SINCLAIR
Hill Dems Push Sinclair Probe
Sinclair Kerry Plans Drawing Dem Fire
Activists Push for Personal-Attack Rule
Sinclair Fiddles While the FCC Sleeps
Common Cause, Media Groups Challenge Sinclair Broadcast
Media Reform Groups Challenge Sinclair Broadcasting to Uphold the Public=
Trust
Sinclair's Plans Demand Return to Personal Attack Rule, Fairness Doctrine
Sinclair vs. Sundance

JOURNALISM
Young Offers Airtime to Candidates
Will Satellite, 'Podcasting' Bring a Renaissance to Radio Journalism?
Press-Public Dialogues About Media Credibility Prompt Changes in=20
Newspapers that Participate
Crackdown on Internet Journalists
Iraqi TV Delivers Twists on Reality and Reality Shows

NEWS FROM FCC
Universal Service Monitoring Report
FCC to Act on Fiber-Optic Networks
Source: Majority of FCC Backs Cingular Plan
Decision Looms on High-Speed Access Aloft
FCC's Freeze on Funding Catches Some Schools, Libraries by Surprise
NAB Proposes Helping Minorities, Majority
NCTA Fighting for Digital Downconversion

INTELLECTUAL PROPERTY
McCain Blocks Senate Consideration of Copyright Bill Senate Consideration

MORE ON SINCLAIR

HILL DEMS PUSH FOR SINCLAIR PROBE
How does the FCC determine whether an action by a licensee serves the=20
public interest? Does it serve the public interest for a licensee to air a=
=20
program that is no more than a one-sided propaganda piece against one of=20
the Presidential candidates two weeks before the election is held? If the=20
FCC determines that a licensee has violated the Commission's public=20
interest test, can the Commission, during license renewal proceedings,=20
designate an application for a hearing that could ultimately lead to the=20
denial of renewal? If the FCC determines that a licensee has violated the=20
Commission's public interest test, would such violation be considered by=20
the Commission during license renewal proceedings? If the FCC determines=20
that a licensee has violated the Commission's public interest test, can the=
=20
commission commence license revocation proceedings? These are the questions=
=20
senior Democratic members of the House Commerce Committee are asking the=20
FCC to answer by Wednesday October 20 in response to Sinclair's decision to=
=20
air "Stolen Honor." Reps. John Dingell (MI) and Ed Markey (MA) say Sinclair=
=20
appears to be violating its obligation to operate stations in the public=20
interest by airing programming attacking a presidential candidate so close=
=20
to the election.
[If the FCC answers the first question above, won't the entire Sinclair=20
mess be worth it?]
[SOURCE: Broadcasting&Cable, AUTHOR: Bill McConnell]
http://www.broadcastingcable.com/article/CA471959?display=3DBreaking+New...
ferral=3DSUPP
(free access for Benton's Headlines subscribers)

SINCLAIR KERRY PLANS DRAWING DEM FIRE
Here's how FCC insiders explain why the Commission will not act before=20
Sinclair stations air "Stolen Honor." Until the show airs, there is no=20
violation of equal-time rules for political candidates. The FCC wouldn't=20
step in unless it got a complaint that a broadcaster gave time to one=20
candidate, then refused a request by the opposing candidate for equal time.=
=20
Blocking the program before it airs could amount to censorship and violate=
=20
Sinclair's First Amendment rights. Sinclair stock prices fell Tuesday for=20
the second day running, tumbling more than 1% in heavy volumes. Total wiped=
=20
off the market value since the weekend: $25 million.
[SOURCE: Boston Herald, AUTHOR: Greg Gatlin]
http://business.bostonherald.com/businessNews/view.bg?articleid=3D48778

ACTIVISTS PUSH FOR PERSONAL-ATTACK RULE
Representatives of Common Cause, the Alliance for Better Campaigns, Media=20
Access Project, Media for Democracy, and the Office of Communication of the=
=20
United Church of Christ said Wednesday that Sinclair's decision to carry=20
the documentary three weeks before the election on all of its 62 stations=20
represented a political agenda at odds with its responsibilities as=20
licensees to be fair and balanced. The groups were not asking for the=20
documentary to be pulled, pointing out that they hadn't seen it and it=20
wasn't the government's place to do so anyway. But they do want Sinclair to=
=20
offer a similar amount of time for an opposing view. If Sinclair doesn't=20
offer the time, all 62 of its TV licenses could be challenged. Media Access=
=20
Project head Andrew Schwartzman said they would ask the FCC to reinstate=20
the personal attack rule, a corollary of the fairness doctrine, which the=20
FCC threw out in 1987. The Fairness Doctrine grew out of Section 315 of the=
=20
Communications Act, which still requires broadcasters who allow one=20
candidate to use their airtime to make time available to opposing=20
candidates (the so-called equal opportunities clause), though they are not=
=20
required to offer time to either (they are required to sell time to=20
candidates).
See summaries and links below to statements made by these groups.
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
http://www.broadcastingcable.com/article/CA471915.html?display=3DBreakin...
ws&referral=3DSUPP
(free access for Benton's Headlines subscribers)

SINCLAIR FIDDLES WHILE FCC SLEEPS
America's Big Media system has become a menace to our democracy. Americans=
=20
granted these media companies our very first constitutional protection. In=
=20
return many media groups have short changed American democracy by putting=20
their corporate interests before those of the public. Unfortunately, the=20
FCC has been lax in ensuring that bad actors such as Sinclair are held to a=
=20
more meaningful set of public interest obligations, including a minimum of=
=20
fair coverage of electoral and civic affairs. Free from the consequences of=
=20
a more forceful FCC, media groups like Sinclair will continue to push their=
=20
extreme bias onto the public. It's now time that the public turns the=20
tables on Sinclair. Along with the other groups here today, MediaChannel=20
and Media for Democracy have issued a challenge that Sinclair uphold its=20
obligation to the public interest by offering on all 62 of its stations an=
=20
equal amount of pre-election, prime viewing airtime for the broadcast of a=
=20
program that is controlled by those representing an opposing view to=20
"Stolen Honor". But there's more that we can, and will, do. If Sinclair=20
doesn't act now to repair its shoddy intentions on behalf of the public,=20
MediaChannel and Media for Democracy pledge to mobilize local activists=20
against the 62 stations that operate under Sinclair's banner. We already=20
have more than 21,000 activists on the ground in Sinclair markets. More=20
citizens across the nation are responding with a willingness to take action=
=20
if this station group moves ahead with "Stolen Honor". Actions will include=
=20
comprehensive monitoring of Sinclair stations, call in campaigns to station=
=20
general managers and news directors, public forums and meetings to reach=20
others and educate the community about Sinclair's public interest=20
obligations, and, if necessary, a formal challenge to Sinclair license=20
renewals, station by station, when they come due.
[SOURCE: MediaChannel.org Press Statement, AUTHOR: Timothy Karr]
http://www.mediachannel.org/views/dissector/affalert278.shtml

COMMON CAUSE, MEDIA GROUPS CHALLENGE SINCLAIR BROADCAST
Like all broadcasters who receive their public airwaves licenses for free=20
from the government, Sinclair Broadcast Group promises to serve the public=
=20
interest, convenience and necessity. At the heart of that promise is the=20
commitment to report the news as fairly as possible, and to air diverse=20
points of view on issues of national and local importance. Airing the=20
anti-Kerry documentary, Stolen Honor: Wounds that Never Heal, or portions=20
of it, and billing it as =93news=94 is not fair, and fails to provide=
viewers=20
with the even-handed journalism that they require. Sinclair reportedly is=20
giving its 62 stations no choice in whether to air the movie. This is one=20
of the key flaws of concentrated media ownership: Sinclair, headquartered=20
in Maryland, gets to dictate programming for communities in North Carolina,=
=20
Ohio and Florida and across the United States without local citizens having=
=20
a say. Sinclair=92s plans reinforce the need for the FCC to place=20
restrictions on media concentration and to define in specific terms what=20
broadcast licensees must do to serve the public interest. When media=20
conglomerates with political agendas decide what constitutes =93news=94 for=
the=20
American public, true democratic discourse is threatened.
[SOURCE: Common Cause Press Release]
http://www.commoncause.org/site/apps/nl/content2.asp?c=3DdkLNK1MQIwG&b=3...
883&ct=3D252769

MEDIA REFORM GROUPS CHALLENGE SINCLAIR BROADCASTING TO UPHOLD PUBLIC TRUST
Our broadcast system is founded on the public trustee system - a system in=
=20
which broadcasters get licenses for free to use the publicly owned airwaves=
=20
in exchange for a promise to serve their communities and fulfill public=20
interest obligations. Sinclair=92s announced plan to air =93Stolen Honor:=20
Wounds That Never Heal=94 threatens to breach that trust, since Sinclair=92s=
=20
decision appears to be driven more by a political agenda than by news=20
judgment. However, the airing of this or any other particular program is=20
not what is in question. The question is whether, as a public trustee,=20
Sinclair will make sure that all viewpoints are given equal opportunity to=
=20
be heard. Any decision by a broadcast station to use the publicly owned=20
airwaves to promote one candidate over another raises questions about its=20
fitness as a public trustee. The courts have ruled that broadcasters are=20
exempt from certain campaign finance laws dealing with corporate=20
expenditures on behalf of candidates - so long as their activities fall=20
within their legitimate press function. Acts of extreme bias may be outside=
=20
of this standard, and should be addressed by the Federal Election=20
Commission. Similarly, acts of extreme bias may violate broadcasters=92=20
statutory public interest obligations, and should be addressed in license=20
renewal hearings at the Federal Communications Commission. Of course, that=
=20
assumes a vibrant and functional license renewal process and clear=20
guidelines on the responsibilities of being a public trustee - both of=20
which are in question today. For five years, the FCC has failed to take=20
action on the public interest obligations of broadcasters in the digital=20
age. Secure in the knowledge they face few consequences or sanctions from=20
the FCC, station groups like Sinclair will continue to push the bounds of=20
their public trust. And the ultimate losers in this game of chicken are the=
=20
American people who will not have the balanced information they need to be=
=20
informed and educated voters.
[SOURCE: Alliance for Better Campaigns Press Release]
http://www.bettercampaigns.org/press/release.php?ReleaseID=3D63

SINCLAIR'S PLANS DEMAND RETURN TO PERSONAL ATTACK RULE, FAIRNESS DOCTRINE
"Sinclair Broadcasting's plans to show an anti-Kerry documentary days=20
before the presidential election demand restoring the personal attack rule=
=20
and the Fairness Doctrine," Gloria Tristani, managing director of the=20
Office of Communication of the United Church of Christ told reporters at a=
=20
joint press conference in Washington, D.C. The FCC's Fairness Doctrine=20
policy, which was in effect from 1949 to 1987, required television=20
broadcasters to cover controversial issues in their community by offering=20
balanced and contrasting views. The personal attack rule, which was in=20
force from 1967 to 2000, gave individuals an opportunity to respond to=20
character attacks during discussions of controversial public issues. "While=
=20
Sinclair can order its 62 television stations to air the documentary, each=
=20
station holds its license as a public trustee and is obligated to serve its=
=20
community of license," Tristani said. But although media outlets and=20
corporations have fundamental public interest obligations embodied in the=20
Communications Act, nothing in current FCC rulings or policies would=20
require Sinclair Broadcasting to give others the air time to provide a=20
contrasting or balancing view, she added. "It is high time that the FCC, or=
=20
even better, the United States Congress, reinstate the personal attack rule=
=20
and the Fairness Doctrine," Tristani said.
[SOURCE: United Church of Christ, Office of Communications Press Release]
http://www.ucc.org/news/u101304.htm

SINCLAIR VS. SUNDANCE
[Commentary] You think what Sinclair is doing is bad? Get a load of the=20
Sundance Channel! Operated by Viacom's Showtime Networks, this channel is=20
preempting its scheduled lineup in order to devote nearly one-sixth of its=
=20
airtime through Election Day to programming opposed to President Bush and=20
the GOP. So far, however, this highly partisan scheme has slipped under the=
=20
news media's radar. And you can forget about "equal time." Not one film on=
=20
Sundance's schedule can be construed as pro-Bush, pro-GOP or even=20
politically balanced. Its pre-election political film selection is instead=
=20
uncompromisingly monolithic and deeply hostile to Republicans and President=
=20
Bush. Never before in the annals of U.S. broadcasting has a television=20
network so vigorously and unabashedly pursued such a totally one-sided=20
political agenda, unquestionably intended to influence voters ahead of=20
what's shaping up to be a very close presidential election.
[Editor's note: Sundance is not a broadcaster -- as Sinclair is -- and is=20
not subject to public interest obligations broadcasters are.]
[SOURCE: National Review Online, AUTHOR: William P. Kucewicz, former=20
editorial board member of the Wall Street Journal]
http://www.nationalreview.com/comment/kucewicz200410131008.asp

JOURNALISM

YOUNG OFFERS AIRTIME TO CANDIDATES
Young Broadcasting owns six ABC affiliates, three CBS affiliates, one NBC=20
affiliate and independent KRON-TV San Francisco. The TV stations will offer=
=20
some Congressional candidates two 50-second spots (each airing twice)=20
during newscasts to respond to issues chosen by the stations.
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
http://www.broadcastingcable.com/article/CA471578.html?display=3DBreakin...
ws&referral=3DSUPP
(free access for Benton's Headlines subscribers)

WILL SATELLITE, 'PODCASTING' BRING A RENAISSANCE TO RADIO JOURNALISM?
Don't look to satellite radio to re-energize radio journalism, a victim of=
=20
massive corporate buyouts. These operators are making investments in=20
personalities -- not news -- to draw in new listeners. But while satellite=
=20
radio will always have limited appeal due to the monthly charge, podcasting=
=20
offers a free way for you to create your own radio station on the fly each=
=20
day, listening when you want. There's commentary out there -- but mainly=20
technology radio shows. Beyond the smaller productions, there are now more=
=20
polished podcasts from public radio station WGBH as well as KOMO 1000 AM=20
news in Seattle. Offering audio programming can be cheap: can spend about=20
$1,000 on audio equipment, maybe $2,000 on an Apple laptop, and with the=20
right training, start reporting stories and put them online. It may take=20
some time, then, for quality programming to find an audience.
[SOURCE: Online Journalism Review, AUTHOR: Mark Glaser]
http://www.ojr.org/ojr/glaser/1097614994.php

PRESS-PUBLIC DIALOGUES ABOUT MEDIA CREDIBILITY PROMPT CHANGES IN NEWSPAPERS=
=20
THAT PARTICIPATE
With help from the Associated Press Managing Editors Association,=20
newspapers around the country are discussing journalistic credibility with=
=20
their readers, and a survey released today shows that such discussions are=
=20
prompting them to make changes to improve their accuracy, broaden their=20
pool of news sources, and increase the diversity of their coverage and=20
their newsroom staffs. The APME survey looked at the results of the first=20
two cycles of public discussions held as part of APME's National=20
Credibility Roundtables Project. Launched in 2001, the project trains and=
=20
coaches newspapers in how to have dialogue with their communities around=20
issues that influence readers' trust in what they read. Approximately 10%=20
of American daily newspapers have held or are scheduled to hold roundtable=
=20
discussions as a result of the project. The survey reported on 94=20
newspapers that held roundtable discussions in a 2001-2003 period. In=20
responses to a series of questions, 92 of the 94 newspapers said that=20
engaging in the community discussions had influenced their practices or=20
policies or both. The topic for each roundtable was specific to that=20
community, but the three top categories of topics were diversity and=20
minority issues, special issues of local concern such as the reporting of=20
certain crimes, and general credibility of the media.
[SOURCE: Associated Press Managing Editors Association Press Release]
An 8-page executive summary of the survey is available on-line=20
www.apme.com/credibility or, by request, by email from credibility( at )ap.org

CRACKDOWN ON INTERNET JOURNALISTS
Iranian authorities have arrested at least six Internet journalists and=20
webloggers in recent days in a further blow to limited press freedoms in=20
the Islamic state. News-based Internet sites and online journals known as=20
Weblogs have flourished in Iran where the disproportionately youthful=20
population often turns to the Internet for information and entertainment.=20
The hardline judiciary's muzzling of print media through the closure of=20
some 100 publications in the last four years also meant the Internet became=
=20
a haven for liberal journalists seeking a place to write.
[SOURCE: Reuters]
http://www.reuters.com/newsArticle.jhtml?type=3DinternetNews&storyID=3D6...
52

IRAQI TV DELIVERS TWISTS ON REALITY AND REALITY SHOWS
A look at the program line-up on Al-Sharqiya, or =93The Eastern,=94 Iraq's=
=20
first independently owned satellite channel. The network was launched June=
=20
11 by Iraqi media mogul Saad al-Bazzaz. He is best known as the founder of=
=20
Al-Azzaman, a London-based newspaper for Iraqi exiles. Al-Bazzaz has=20
invested $30 million in the network, one of five in Iraq. But Al-Sharqiya=20
is the only one with original, non-news programming. There's a lot of=20
reality programming: a show called Labor and Materials stars a home=20
improvement crew that each week surprises a family by rebuilding its=20
war-damaged home; on Ration Card, the network gives $1,000 to the lucky=20
family whose food ration card number is drawn from a bin; Blessed Wedding=20
pays $6,000 of a poor couple's wedding expenses (in exchange, the couple=20
lets cameras film them from engagement to married life); and The Gentlemen=
=20
profiles Iraqis who have prospered from the booming economy.
[SOURCE: USAToday, AUTHOR: Csar G. Soriano]
http://www.usatoday.com/printedition/news/20041014/a_iraqtv14.art.htm

NEWS FROM FCC

UNIVERSAL SERVICE MONITORING REPORT
The staff of the Federal-State Joint Board on Universal Service has=20
released its most recent Monitoring Report on Universal Service. This=20
report reflects
information on the telephone industry filed with the FCC through May 2004.=
=20
The report addresses the various universal service support mechanisms,=20
which amounted to over $5 billion in 2003. In 2003, disbursements among the=
=20
four categories of universal service mechanisms were: 61.1% for high-cost=20
support; 25.1% for schools and libraries support; 13.4% for low-income=20
support; and 0.4% for rural health care support. The report presents data=20
in eleven categories including: 1) Subscribership and Penetration =AD The=20
percentage of households subscribing to telephone service declined slightly=
=20
to an average of 95.1% in 2003. 2) Low-Income Support =AD Total low-income=
=20
support increased from about $676 million in 2002 to about $716 million in=
=20
2003. 3) Schools and Libraries Support =AD Schools and libraries are making=
=20
substantial use of their available support, with commitments remaining=20
above $2 billion and disbursements remaining below $1.7 billion for the=20
latest school years. 4) Rural Health Care Support =AD The demand for rural=
=20
health care support has remained at a modest level, with disbursements of=20
about $19.2 million for the fourth year of the program (July 2002 - June=20
2003), up from $18.6 million in the prior year. 5) High-Cost Support =AD In=
=20
2003, total high-cost support amounted to nearly $3.3 billion, an increase=
=20
from over $2.9 billion in 2002. This increase is primarily due to the=20
increase in the interstate common line support mechanism, which began in=20
July 2002.
This report makes a fine Halloween "treat" -- and it is free at the URL=
below.
[SOURCE: FCC]
http://www.fcc.gov/Bureaus/Common_Carrier/Reports/FCC-State_Link/Monitor...
4-0.pdf

FCC TO ACT ON FIBER-OPTIC NETWORKS
The long-standing approach to fostering telephony competition has been to=20
allow competitors to lease parts of the dominant telephone companies'=20
networks. In a move expected today, the FCC is likely to approve a proposal=
=20
to give the major telephone companies more leeway in the design of new=20
fiber-optic networks, sparing them from the regulation that governs=20
traditional phone lines. Under current rules, fiber networks are not=20
subject to the same regulations as existing copper phone lines if they are=
=20
used to connect homes in new neighborhoods. The FCC is considering the same=
=20
deregulatory framework if telephone companies establish fiber networks=20
within 500 feet of a home, using copper wires to complete the connection.=20
The company would still have to share the copper for local phone service=20
competitors, but no longer be required to open its network to competing=20
Internet service providers. The fiber/copper combo will reportedly be=20
robust enough to deliver phone and high-speed Internet service as well as=20
hundreds of television channels.
[SOURCE: Washington Post, AUTHOR: Christopher Stern]
http://www.washingtonpost.com/wp-dyn/articles/A30725-2004Oct13.html
(requires registration)
Additional coverage --
* Los Angeles Times
http://www.latimes.com/business/printedition/la-fi-phones14oct14,1,25654...
tory?coll=3Dla-headlines-pe-business

SOURCE: MAJORITY OF FCC BACKS CINGULAR PLAN
Three of five FCC Commissioners have reportedly voted to approve the merger=
=20
of Cingular and AT&T Wireless. The decision will likely include=20
requirements that the company make some divestitures in as many as two=20
dozen markets.
[SOURCE: Los Angeles Times, AUTHOR: Reuters]
http://www.latimes.com/business/printedition/la-fi-rup14.1oct14,1,449465...
ory?coll=3Dla-headlines-pe-business
(requires registration)

DECISION LOOMS ON HIGH-SPEED ACCESS ALOFT
The FCC is set next month to decide how to auction spectrum to wireless=20
carriers to bring high-speed Internet service to U.S. airlines as early as=
=20
next year. Proponents say the new =93air-to-ground=94 service would be more=
=20
economical for struggling U.S. airlines than current satellite-based=20
in-flight broadband offered only overseas. The agency could auction the=20
airwaves to at least two companies, encouraging competition but risking=20
interference among the services that, some say, would prevent any from=20
working properly. Alternatively, it could auction the spectrum to one=20
company, ensuring the service works smoothly but creating a virtual=20
monopoly that could mean higher prices, fewer features and more limited=20
rollout.
[SOURCE: USAToday, AUTHOR: Paul Davidson]
http://www.usatoday.com/printedition/money/20041014/airbroadband14.art.htm

FCC'S FREEZE ON FUNDING CATCHES SOME SCHOOLS, LIBRARIES BY SURPRISE
The freeze on E-rate funds could result in the collapse of the Maine=20
Schools and Library Network, a network that links 1,100 schools and=20
libraries statewide. The network relies on $3 million/year from the E-Rate=
=20
program. Edna Comstock, the E-Rate coordinator for the Maine State Library,=
=20
said, "Without that funding, we don't know what happens to the network.=20
Major programs like the statewide (library) automation system, the shared=20
catalog and databases -- all of those things ride on that network."=20
Additionally, some libraries depend on E-rate funds to support basic=20
telephone service and Internet connections. One library estimates it would=
=20
pay $1,000/month for Internet service it currently pays $300/year for.=20
Pornography filters funded by the E-rate may also be dropped.
There's more at the URL below.
[SOURCE: Morning Sentinel (Waterville, Maine) , AUTHOR: Chuin-Wei Yap at=20
cyap( at )centralmaine.com]
http://morningsentinel.mainetoday.com/news/local/1047154.shtml

NAB PROPOSES HELPING MINORITIES, MAJORITY
The National Association of Broadcasters has weighed in on the FCC's=20
inquiry into making it easier for small businesses, women and minorities to=
=20
get a piece of spectrum-based services. Both of its principal suggestions=20
have the added benefit of helping established broadcasters in the bargain.=
=20
NAB's suggestions: 1) Restore tax incentives that give established=20
broadcasters tax breaks or other benefits when they sell stations to=20
minorities or women and 2) Repeal the "equity/debt plus" attribution rule=20
that makes any debt or equity position in a broadcast property of more than=
=20
33% attributable toward station ownership limits.
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
http://www.broadcastingcable.com/article/CA471685.html?display=3DBreakin...
ws&referral=3DSUPP
(free access for Benton's Headlines subscribers)

NCTA FIGHTING FOR DIGITAL DOWNCONVERSION
The National Cable & Telecommunications Association is asking the FCC to=20
give cable operators the option to convert digital-broadcast signals to=20
analog at cable systems=92 headends. The NCTA wants the format-selection=20
authority granted to cable operators until a substantial majority of=20
consumers have digital-reception equipment, because if a TV station=20
insisted on digital carriage, its signal would be unviewable on analog-TV=20
sets in the homes of millions of cable subscribers. Consumers would need to=
=20
buy digital-TV sets or lease cable set-top boxes to view passed-through=20
digital-broadcast signals. The National Association of Broadcasters has=20
told the FCC that in addition to being bad policy, downconversion at the=20
headend would violate the federal bar on the material degradation of=20
local-broadcast signals by cable operators.
[SOURCE: Multichannel News, AUTHOR: Ted Hearn]
http://www.multichannel.com/article/CA471923.html?display=3DBreaking+News
(requires subscription)

INTELLECTUAL PROPERTY
McCain Blocks Senate Consideration of Copyright Bill Senate Consideration
MCCAIN BLOCKS SENATE CONSIDERATION OF COPYRIGHT BILL SENATE CONSIDERATION
Senate Commerce Committee Chairman John McCain (R-AZ) is holding up a vote=
=20
on a combination of bills he says might hinder people's ability to=20
fast-forward through TV commercials. The combined bills are called the=20
Intellectual Property Protection Act (IIPA). IIPA is made up mainly of two=
=20
bills introduced by House Judiciary
Courts, Internet & Intellectual Property Subcommittee Chairman Smith=20
(R-TX): 1) HR-2391, the Cooperative Research & Technology Enhancement Act=20
(CREATE Act), a bill that amends patent law and 2) HR-4077, a more=20
contentious bill that lowers the prosecutorial threshold for pursuing=20
file-sharers. That bill, which cleared the House last month, was amended to=
=20
include language protecting ClearPlay, a service that allows viewers to=20
skip objectionable content in DVDs. Sen McCain=92s concern about IIPA=20
outlawing the skipping of commercials echoes an argument made last week by=
=20
Public Knowledge, and in fact Sen McCain cited Public Knowledge (and=20
Consumers Union) in a speech on the Senate floor. Talking points by Public=
=20
Knowledge sent out to encourage e-mails to Capitol Hill say the new=20
language was a result of the =93entertainment industry,=94 which =93hijacked=
=94 the=20
original Smith language of the Family Movie Act and =93turned it against=20
consumers and the tech community.=94
[SOURCE: Communications Daily, AUTHOR: Patrick Ross]
(Not available online)
Learn more about Public Knowledge and a host of IP issues at=20
http://www.publicknowledge.org/
--------------------------------------------------------------
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.
--------------------------------------------------------------

Benton's Communications-related Headlines for 10/13/04

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

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

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

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

MEDIA & ELECTIONS

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

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

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

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

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

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

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

INDECENCY

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

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

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

QUICKLY

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

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

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

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

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

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

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

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

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

FTC FILES FIRST SPYWARE CASE FOLLOWING CDT COMPLAINT
The Federal Trade Commission filed suit in the District Court of New
Hampshire on Thursday against Seismic Entertainment and a former
self-styled "Spam King," Sanford Wallace, taking up a complaint filed by
CDT last February. CDT's complaint highlighted browser hijacking and
deceptive advertising run by Seismic advertising, and CDT subsequently
documented forced installations caused by a Seismic website. The FTC's suit
mentions these and other actions as reasons for its suit.
[SOURCE: Center for Democracy and Technology]
(http://www.cdt.org)
Additional coverage --
*Washington Post
http://www.washingtonpost.com/wp-dyn/articles/A28179-2004Oct12.html
* New York Times
http://www.nytimes.com/2004/10/13/technology/13spy.html
--------------------------------------------------------------
Communications-related Headlines is a free online news summary service
provided by the Benton Foundation (www.benton.org). Posted Monday through
Friday, this service provides updates on important industry developments,
policy issues, and other related news events. While the summaries are
factually accurate, their often informal tone does not always represent the
tone of the original articles. Headlines are compiled by Kevin Taglang
(headlines( at )benton.org) -- we welcome your comments.
--------------------------------------------------------------

Benton's Communications-related Headlines for 10/12/04

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

MEDIA & ELECTION
Family's TV Clout In Bush's Corner
Plan to Air Divisive Film Raises Questions
Activists Take Aim at Sinclair Licenses
Networks Vow Caution in Calling Election
Politics, Media and Money
Anatomy of a Lobbying Blitz: Cable Industry Enlists Diverse Crowd in
High-Level Influence Campaign

MEDIA POLICY
Too Big To Be Too Good
Entertainment Industry Asks Justices to Rule on File Sharing
FCC Plans to Levy Big Indecency Fine Against Fox TV
Two-Dish Ban Passes Muster In the House
Turner to FCC: Tiers Make the Most Sense
Finnish Watchdog Raps TV Game Operators

TELECOM
Comcast CEO Offers Olive Branch to Bells
FCC Fur Flies Over eRate Delays

QUICKLY
Ultrawideband Heralds Zippier Wireless Connections
Job Available: New America Foundation

MEDIA & ELECTION

FAMILY'S TV CLOUT IN BUSH'S CORNER
Who are David D. Smith and his brothers Frederick, Robert and J. Duncan?
They are the controlling interest behind Sinclair Broadcasting Group, a the
nightmare media activists have been screaming about come to life. They
control TV stations from Buffalo to Sacramento, including 20 Fox
affiliates, eight from ABC, four from NBC and three from CBS. In 2001, they
ordered local anchors to read editorials backing the Administration against
al Qaeda. Earlier this year, Sinclair sent a vice president to Iraq to find
good news stories that it said were being overlooked by the biased liberal
press. And the Smith brothers and their executives have made 97% of their
political donations during the 2004 election cycle to Bush and the
Republicans. Now Sinclair has ordered its 62 stations to carry a movie
attacking Sen Kerry's Vietnam record. "This is an abuse of the public
trust," FCC Commissioner Michael Copps said in a statement yesterday. "And
it is proof positive of media consolidation run amok when one owner can use
the public airwaves to blanket the country with its political ideology --
whether liberal or conservative." But Heritage Foundation media analyst
Mark Tapscott called it a free speech issue, saying: "Why are we even
thinking about limiting what a media organization can publish? There are
lots of things in the world that are unfair."
More reaction in the following two stories.
[SOURCE: Washington Post, AUTHOR: Howard Kurtz & Frank Ahrens]
http://www.washingtonpost.com/wp-dyn/articles/A25406-2004Oct11.html
(requires registration)

PLAN TO AIR DIVISIVE FILM RAISES QUESTIONS
Why would Sinclair Broadcasting CEO David Smith embroil himself in
controversy by ordering his stations to air a documentary challenging Sen
John Kerry's Vietnam service within days of the presidential election? Wall
Street does not like the decision. Sinclair's shares, which have lost about
half their value in 2004, closed Monday at $7.38, down 12 cents. That's
about as low as they've been since 1995. "I don't want my media companies
that cover the news to be making news," says Barry Lucas of Gabelli & Co.,
which owns about 4% of Sinclair. Many believe Sinclair's decision shows how
much the company has riding on the election. With its heavy concentration
of Fox and WB affiliates, ranking in the middle of the pack in mostly
midsize markets, Sinclair is barely profitable and laden with debt. It had
a net profit of $14 million on revenue of $739 million in 2003. Sinclair
hopes to change that by solidifying its hold on local markets by
controlling, for example, two stations in more cities and sharing operating
and news-gathering costs. But it needs the federal government to relax
several media ownership restrictions. Sinclair wants the FCC to permit a
company to own two or more stations in more communities than allowed now.
It also wants the FCC to ease a restriction that bars a company from owning
TV stations reaching more than 35% of all homes, and to lift the rule that
keeps companies from owning newspapers and TV stations in most markets. The
Bush-appointed Chairman of the FCC, Michael Powell, supports these changes.
Sen Kerry has said that he opposes further concentration of media ownership.
[SOURCE: USAToday, AUTHOR: David Lieberman]
http://www.usatoday.com/printedition/money/20041012/1b_corptax12.art.htm

ACTIVISTS TAKE AIM AT SINCLAIR LICENSES
Sinclair Broadcast Group's decision to preempt local programming schedules
to air an anti-(Sen)Kerry documentary is riling both media activists and
the Democratic Party. Free Press has started a website,
www.sinclairwatch.org, and is promising to challenge Sinclair-owned
stations when their licenses come up for renewal. Free Press thinks
Sinclair is illegally dictating programming schedules for five stations
owned by Cunningham Broadcasting that Sinclair manages under local
marketing agreements. Under LMAs, the managing partner runs advertising and
operational functions but leaves the station's programming decisions to the
owner.
The DNC plans to file a complaint with the Federal Elections Commission
arguing that airing the documentary will amount to an illegal contribution
to President Bush's campaign.
[SOURCE: Broadcasting&Cable, AUTHOR: Bill McConnell]
http://www.broadcastingcable.com/article/CA470905?display=Breaking+News&...
(free access for Benton's Headlines subscribers)
Democrats Protest Sinclair Documentary
http://www.broadcastingcable.com/article/CA470900.html?display=Breaking+...
Additional coverage --
* Wall Street Journal
http://online.wsj.com/article/0,,SB109753409886642369,00.html?mod=todays...
* LATimes
http://www.latimes.com/news/printedition/asection/la-na-sinclair12oct12,...

NETWORKS VOW CAUTION IN CALLING ELECTION
Four years ago, ABC, CBS, NBC, CNN and Fox projected an Al Gore victory in
Florida on the basis of exit polls, and then awarded Florida -- and the
presidency -- to George W. Bush six hours later. But the race was so
agonizingly close that it triggered a 36-day recount battle, and the news
division presidents later apologized at a House hearing. Now they are
promising that it will not happen again. Really. Trust us. The five
networks and the Associated Press dissolved their exit poll consortium,
Voter News Service. They have hired two firms -- Edison Media Research and
Mitofsky International -- to handle this year's surveys, and have turned
over the actual vote-counting to the AP. For the first time, network
executives vow they will not make projections in any state until all the
polls have closed there. "We're not going to make a projection until we're
confident, and in some cases we may be slower, and that's the way it goes,"
said Dan Merkle, director of ABC's decision desk.
[SOURCE: Washington Post, AUTHOR: Howard Kurtz]
http://www.washingtonpost.com/wp-dyn/articles/A25309-2004Oct11.html
(requires registration)

POLITICS, MEDIA AND MONEY
A who's who of political donations from Hollywood celebrities and executives.
[SOURCE: Broadcasting&Cable, AUTHOR: David Hatch]
http://www.broadcastingcable.com/article/CA470554?display=Top+of+the+Wee...
(free access for Benton's Headlines subscribers)

ANATOMY OF A LOBBYING BLITZ: CABLE INDUSTRY ENLISTS DIVERSE CROWD IN
HIGH-LEVEL INFLUENCE CAMPAIGN
An investigation of hundreds of filings with the FCC, lobbying reports and
other documents reveals that the "grass roots" opposition to the cable
industry's a la carte system of choosing television channels is actually a
highly sophisticated lobbying campaign where seemingly disinterested
third parties -- like nonprofits and legislators -- are spreading the
anti-a la carte message using minority programming as the key issue.
[SOURCE: Center for Public Integrity]
http://www.publicintegrity.org

MEDIA POLICY

TOO BIG TO BE TOO GOOD
[Commentary] Accounts of the demise of America's newspapers are greatly
exaggerated. On any given Super Bowl Sunday, more Americans read their
Sunday paper than watch the game. Americans rely on newspapers much more
than on other media for local news and information. Newspapers influence
other media because of the size of their newsgathering resources. But there
are some financial pressures on newspapers to continue to deliver large
profits. These pressures are resulting in lower-quality news and an
unwillingness to serve customers in whom advertisers have no interest.
Allowing newspaper-broadcast cross-ownership may help profits, but not
journalism. Convergence provides additional means of distribution, but the
newspaper reporter who is asked to get the story out via radio, TV and
Internet is losing time that could be spent collecting the next story.
Every time [a newspaper] is combined with a local television station, there
is at the least one less TV reporter who might actually spy a story the
paper did not. And when the newspaper, broadcast outlets and Web all join
into one report, what values are likely to prevail? As Robert Haiman of the
Poynter Institute put it, "There is going to be a tremendous clash of
values: the journalism values of newspapers, the entertainment values of
television and the no-holds-barred, raw, unedited, anarchic values of the
Internet." Let's guess how likely it is that the values of journalism will win.
[SOURCE: Broadcasting&Cable, AUTHOR: Geneva Overholser, University of Missouri]
http://www.broadcastingcable.com/article/CA470566?display=Editorials&ref...
(free access for Benton's Headlines subscribers)

ENTERTAINMENT INDUSTRY ASKS JUSTICES TO RULE ON FILE SHARING
the movie and music industries have filed a petition asking the Supreme
Court to overturn a decision by the United States Court of Appeals for the
Ninth Circuit in San Francisco that upheld the notion that makers of a
technology with legal uses cannot be held liable simply because some - or
even most - of its users deploy it to violate a copyright. That court
relied heavily on the principles of a 1984 Supreme Court decision known as
the Sony-Betamax case, which gave makers of electronic devices crucial
legal protection against claims of copyright infringement. The new
petition, filed Friday by the recording and film industries, argues that
the appellate court misapplied the Sony-Betamax decision. "The Ninth
Circuit's decision threatens the very foundations of our copyright system
in the digital era," the petition claims, arguing that software companies
like StreamCast and Grokster "brazenly encourage and profit from
infringement" of copyright.
[SOURCE: New York Times, AUTHOR: Tom Zeller Jr]
http://www.nytimes.com/2004/10/12/technology/12share.html
(requires registration)

FCC PLANS TO LEVY BIG INDECENCY FINE AGAINST FOX TV
Fox may be the next TV broadcaster to get a huge indecency fine from the
FCC. A dollar to the reader who guesses correctly which program is drawing
the fine: will it be Married...With Children, That 70's Show, Who Wants to
Marry a Multimillionaire or perhaps Trading Spouses? The winner is Married
by America, a 2003 reality series which was a big loser in the ratings. The
offending material depicted a bachelor party that included strippers,
whipped cream and topless prostitutes, according to the Parents Television
Council, a media watchdog that filed a complaint with the FCC. The fine,
apparently, will apply to all Fox affiliates, not just those owned and
operated by the network. It could reach $1 million.
[SOURCE: Wall Street Journal, AUTHOR: Anne Marie Squeo
annemarie.squeo( at )wsj.com & Joe Flint joe.flint( at )wsj.com]
http://online.wsj.com/article/0,,SB109754542728642705,00.html?mod=todays...
(requires subscription)

TWO-DISH BAN PASSES MUSTER IN THE HOUSE
EchoStar customers in 38 markets currently need two dishes to receive all
of their local TV stations. The practise infuriates broadcasters because
although the second dish comes for free many subscribers don't bother to
get it hooked up. The FCC has refused to ban the practise, but the House
approved satellite copyright-renewal legislation that gives EchoStar just
one year to convert all local TV subscribers to a single satellite dish.
The House bill (H.R. 4518) would allow EchoStar to require a second dish,
but all local TV stations would have to be available on that dish. EchoStar
indicated it might move all local TV stations in the 38 markets to the
second dish, which would mean subscribers with one dish now would need to
install a second dish within a year.
[SOURCE: Multichannel News, AUTHOR: Ted Hearn]
http://www.multichannel.com/article/CA470543.html?display=Top+Stories
(requires subscription)

TURNER TO FCC: TIERS MAKE THE MOST SENSE
The FCC has about six weeks to deliver to Congress a report on the pros and
cons of a la carte cable pricing. Turner Broadcasting, a division of Time
Warner, say its economic consultants concluded that a la carte mandates
would thwart cable's ability to offer consumers a broad range of
programming in the most economically efficient manner. According to
Analysis Group economists Coleman Bazelon and Thomas Hazlett, bundling
"dramatically lowers distribution costs for programmers and transaction
costs for customers who are able to continuously sample a wide variety of
programs at no additional cost." The two analysts also concluded, "Bundling
enables consumers to share the costs of facilities delivering a broad menu
of popular services." A la carte, they added, "results in higher prices and
is rejected by consumers in those instances in the multichannel-video
market where it has been tried."
[SOURCE: Multichannel News, AUTHOR: Ted Hearn]
http://www.multichannel.com/article/CA470899.html?display=Breaking+News
(requires subscription)

FINNISH WATCHDOG RAPS TV GAME OPERATORS
Finland has seen a recent boom in television games and competitions that
can be entered by sending text messages. Broadcast during the afternoon,
the programs are targeted at children and can cost a $1 or more per text
message to play. One child racked up a bill of $1,500 playing. The
country's Consumer Ombudsman said numerous parents had complained about the
fad and has now reprimanded broadcasters. The watchdog said the price
information given was not even clear enough to fulfill legal requirements
for advertising to adults.
[SOURCE: Reuters]
http://www.reuters.com/newsArticle.jhtml;jsessionid=NWYZUI42MVTXECRBAEOC...

TELECOM

COMCAST CEO OFFERS OLIVE BRANCH TO BELLS
Speaking at the United States Telecommunications Association's annual
conference, Comcast CEO Brian Roberts began with a little tune..."Try to
see it my way/Do I have to keep on talking till I can't go on?/While you
see it your way/Run the risk of knowing that our love may soon be gone/We
can work it out/We can work it out." Actually, he said, "Today I ask you to
join me to help unleash the power of competition, to use energies not to
pit the government against each other, but to (advocate) a national
deregulation policy that benefits all of us." [By "us" he most probably
meant incumbent teleco and cable giants.] He added that the two industries
should not advocate regulations as a "competitive sword in what should be
marketplace battles, not political battles." Instead, the two sides should
join in preventing the government from regulating their Internet-based
businesses, including the blossoming of voice over Internet Protocol,
commonly known as VoIP. "Whatever our differences, we should be fighting
for the same fundamental goals."
[SOURCE: C-Net|News.com, AUTHOR: Jim Hu and Ben Charny]
http://news.com.com/Comcast+CEO+offers+olive+branch+to+Bells/2100-1034_3...

FCC FUR FLIES OVER ERATE DELAYS
Sharp division among FCC commissioners regarding the abrupt decision to
suspend millions of dollars in eRate funding overshadowed an Oct. 6 event,
"Lifelong Learning: Unleashing the Power of Broadband," to showcase the
many ways broadband Internet access has transformed learning. At the event,
the commissioners encouraged schools and libraries to tell their eRate
success stories. The symposium highlighted many extraordinary examples of
how eRate dollars have directly changed learning in remote communities in
Alaska, for deaf students, and more.
[SOURCE: eSchoolNews, AUTHOR: Cara Branigan]
http://www.eschoolnews.com/news/showStoryts.cfm?ArticleID=5318&page=2

QUICKLY

ULTRAWIDEBAND HERALDS ZIPPIER WIRELESS CONNECTIONS
Do you use Wi-Fi and dream of WiMax? Well, here's a look at what
Ultrawideband can do.
[SOURCE: Reuters, AUTHOR: Duncan Martell]
http://www.reuters.com/newsArticle.jhtml;jsessionid=NWYZUI42MVTXECRBAEOC...

JOB AVAILABLE: NEW AMERICA FOUNDATION
http://www.newamerica.net/index.cfm?pg=app#ProgAssoc
--------------------------------------------------------------
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.
--------------------------------------------------------------

Benton's Communications-related Headlines for 10/08/04

Check local listing for tonight's debate. For upcoming media policy events,=
=20
see http://www.benton.org/calendar.htm

MONDAY IS COLUMBUS DAY, WE WILL BE BACK TUESDAY OCTOBER 12.

TODAY'S QUESTION: Do you think there's a link between media ownership=20
concentration and indecent broadcast content?

FCC PROCEEDINGS
Tell the FCC What You Think About Local Media!
FCC Open Meeting Agenda: Three Broadband Items,
No Mention of Broadcaster Disclosure Rules

DIGITAL TV
Senate Passes Bill With 2008 Digital Conversion for Some Stations
Children's Advocates Ask Congress to End FCC's DTV Campaign

BROADCASTING
Senate Committee Drops Media Provisions From Pentagon Bill
Stern's Move to Satellite Radio Is a Signal Event
Building a 21st Century Radio
NBC to Delay NASCAR
Burns Wants FTC to Oversee TV Ratings Fairness

INTERNET
Burns Vows to Maintain =91Critical' Internet Funding for Schools
E-rate Funds Could Resume Soon, FCC Chief Says
Internet Tax Moratorium Could be Renewed in House
House Passes Second Anti-Spyware Bill

QUICKLY
Performers Bear Brunt of Reality TV and Runaway Production Trends
Grant Opportunity for Massachusetts Community and Faith-Based Organizations
Debating For Ratings

FCC PROCEEDINGS

TELL THE FCC WHAT YOU THINK ABOUT LOCAL MEDIA
The FCC has initiated a proceeding to evaluate whether broadcasters are=20
serving local needs. Now is a good time to put down on paper how you think=
=20
local issues are being covered and submit it to the FCC. When you are done,=
=20
you can submit these to the FCC either via mail or via the Internet. In=20
addition, if you don't want to write something long, you can send a simple=
=20
email to the FCC. The Media Access Project, a public interest law firm in=20
Washington, has published a guide for communicating with the FCC.
[SOURCE: Media Access Project]
http://www.mediaaccess.org/programs/diversity/TELLTHEFCC.pdf

FCC OPEN MEETING AGENDA: THREE BROADBAND ITEMS, NO MENTION OF BROADCASTER=20
DISCLOSURE RULES
The FCC released the agenda for its October 14 open meeting. The Commission=
=20
will consider: 1) rules for providing broadband Internet access of power=20
lines, 2) making additional spectrum available for advanced wireless=20
services, 3) broadband unbundling obligations and 4) payphone compensation=
=20
rates.
[SOURCE: FCC]
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-252981A1.doc

DIGITAL TV

SENATE PASSES BILL WITH 2008 DIGITAL CONVERSION DEADLINE FOR SOME STATIONS
The Senate overwhelmingly passed (96-2) intelligence reform legislation=20
(S-2845) on Wednesday that included a 2008 deadline for broadcasters to=20
vacate the portions of the 700 MHz spectrum reserved for public safety. The=
=20
House has also passed intelligence reform legislation, but it does not=20
include provisions concerning spectrum for public safety. House Commerce=20
Committee Chairman Barton (R-TX) has said he'd prefer dealing with the=20
digital TV conversion with a comprehensive bill in the next Congress.
[SOURCE: Communications Daily, AUTHOR: Terry Lane]
(Not available online)

CHILDREN'S ADVOCATES ASK CONGRESS TO END FCC'S DTV CAMPAIGN
=93Television is a major public health problem. It is a factor in many=20
diseases, syndromes and unhealthy habits, including obesity, type 2=20
diabetes, violence, aggression, attention deficit/hyperactivity disorder,=20
poor fitness and smoking,=94 says a coalition of children's groups, so the=
=20
FCC should not be in the business of encouraging consumers to buy expensive=
=20
new digital TV sets. They have asked Congress to cut off funding for the=20
FCC's digital television education campaign. Among the coalition members=20
are Mothering magazine, Action Coalition for Media Education and Harvard=20
Medical School.
[SOURCE: Communications Daily]
(Not available online)
See also --
Digital TV Effort Sends Wrong Signal, Group Says
[SOURCE: Los Angeles Times, AUTHOR:Alex Pham]
http://www.latimes.com/business/printedition/la-fi-dtv8oct08,1,2964399.s...
?coll=3Dla-headlines-pe-business
(requires registration)

BROADCASTING

SENATE COMMITTEE DROPS MEDIA PROVISIONS FROM PENTAGON BILL
Provisions that would have boosted fines for broadcasting indecent=20
programming have been stripped from the Department of Defense authorization=
=20
bill that Members of Congress hope to pass by the end of the week.=20
Media-related amendments became too controversial and risked passage of the=
=20
DoD bill. According to the sources, the lawmakers made their move after=20
Sen. Byron Dorgan (D-ND) made clear he would fight to include a=20
controversial provision in the package that would bar the FCC from relaxing=
=20
its media ownership rules. Said Barry Piatt, a spokesman for Sen. Dorgan,=20
"If their choice was to protect conglomerates who are buying up everything=
=20
rather than to protect children from indecency, it's a pretty poor choice,=
=20
and they're the ones who made it."
[SOURCE: TVWeek, AUTHOR: Doug Halonen]
http://www.tvweek.com/news.cms?newsId=3D6476
Indecency Fine Boost a Bust
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
http://www.broadcastingcable.com/article/CA470105.html?display=3DBreakin...
ws&referral=3DSUPP
(free access for Benton's Headlines subscribers)
See additional coverage in --
Washington Post:
http://www.washingtonpost.com/wp-dyn/articles/A16587-2004Oct7.html

STERN'S MOVE TO SATELLITE RADIO IS A SIGNAL EVENT
Howard Stern's move to satellite radio is 16 months off, but analysts are=20
already wondering what it will mean for the radio business. Here's one=20
view: "What did it mean to late-night TV when Johnny Carson left?" said=20
David J. Field, chief executive of Entercom Communications, which owns 100=
=20
radio stations. "The reality is, that was not the demise of late-night TV."=
=20
But other see similarities between the evolution of radio from AM to FM.=20
Until the late 1960s, AM was king and FM was a backwater. Station owners=20
who had both AM and FM signals put their high-profile deejays and music on=
=20
the AM stations and used the FM signals for brokered programming -- selling=
=20
time to advertisers -- or simply handed them over to youthful underground=20
deejays to play music. FM was not considered a viable revenue-maker and=20
station owners largely ignored them. But rock music started sounding=20
better. On AM, Jimi Hendrix was tinny. On static-free FM, he was a=20
revelation. Young listeners began streaming to FM stations and owners=20
realized they could be profitable. Owners of AM stations, satisfied with=20
their profits, were afraid to take the risks necessary to compete with the=
=20
growing FM industry. Eventually, almost all music left AM for FM. AM=20
stations struggled until the '80s, when Rush Limbaugh's show caught on and=
=20
AM stations thrived with talk formats. Many worry that broadcast radio will=
=20
lose its best programming to satellite radio. In part, Mr. Stern's=20
departure is fueled by a desire to get out from under FCC indecency=
regulation.
[SOURCE: Washington Post, AUTHOR: Frank Ahrens]
http://www.washingtonpost.com/wp-dyn/articles/A16113-2004Oct7.html
(requires registration)
Additional coverage:
* Wall Street Journal
Howard Stern's decision to leave Viacom for Sirius Satellite Radio=20
reinforces broadcast radio's low standing with investors.
http://online.wsj.com/article/0,,SB109718083800039552,00.html?mod=3Dtoda...
s_money_and_investing

BUILDING A 21ST CENTURY RADIO
How does broadcast radio compete with satellite? Go digital, of course.=20
"Radio cannot remain the only analog player in a digital world," said=20
National Association of Broadcasters CEO Edward Fritts, in a keynote speech=
=20
at the industry's annual convention in San Diego this week. "This industry=
=20
has always been a business filled with risk-takers. But in my view, the=20
real risk is for those unwilling to embrace the promise of HD (digital)=20
Radio." A move to digital radio broadcasting will offer improved reception,=
=20
as well as on-demand programming and time-shifting which allow listeners to=
=20
pause, rewind and record live broadcasts. By the end of the year, there=20
could be anywhere from 2,000 to 2,500 stations licensed or committed to=20
move over to digital.
[SOURCE: C-Net|News.com, AUTHOR: John Borland & Evan Hansen ]
http://news.com.com/Building+a+21st+century+radio/2100-1025_3-5402054.ht...
ag=3Dnl

NBC TO DELAY NASCAR
In the wake of Dale Earnhardt Jr's "utterance" last weekend, NBC has=20
decided to institute a five-second delay for its National Association for=20
Stock Car Auto Racing coverage beginning with Sunday's Banquet 400 race=20
from Kansas City Speedway. NBC already delays all its live award=20
show broadcasts in the wake of the FCC crackdown on indecency, including=20
the finding that Bono's use of the F-word on an NBC telecast was indecent.=
=20
The Parent's Television Council has announced it is likely to file a=20
complaint concerning the Earnhardt S-Word.
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
http://www.broadcastingcable.com/article/CA469956.html?display=3DBreakin...
ws&referral=3DSUPP
(free access for Benton's Headlines subscribers)

BURNS WANTS FTC TO OVERSEE TV RATINGS FAIRNESS
Sen. Conrad Burns (R-MT) wants the Federal Trade Commission to "ensure that=
=20
the television ratings industry is run fairly and in the best interest of=20
the public" and has asked the FTC to see whether existing statutes give it=
=20
that jurisdictional authority.
[SOURCE: TVWeek, AUTHOR: Michele Greppi]
http://www.tvweek.com/news.cms?newsId=3D6474

INTERNET

BURNS VOWS TO MAINTAIN 'CRITICAL' INTERNET FUNDING FOR SCHOOLS
With the E-rate payments of 34 schools and libraries in Montana stopped=20
because of the FCC moratorium started in August, Sen Conrad Burns (R-MT)=20
has vowed to maintain but fix the program. "We can fix this fraudulent=20
abuse,'' Sen Burns said. "They should be reported and action taken on the=20
people that abuse the program. This investigation should move forward. If=20
there is abuse, let's get after it, but don't close the payments and=20
penalize the schools that have benefited from following the rules.'' Burns=
=20
other senators are angry that as part of an effort to rein in the program=20
federal officials have halted payments to schools, libraries and health=20
centers. Sen Burns helped create the E-Rate program when he and other=20
lawmakers were writing the Telecommunications Act of 1996. The program is=20
an expanded version of the basic universal service program that is intended=
=20
to guarantee that all Americans have telephone service.
[SOURCE: Independent Record, AUTHOR: Ted Monoson]
http://www.helenair.com/articles/2004/10/06/montana/a06100604_01.txt

E-RATE FUNDS COULD RESUME SOON, FCC CHIEF SAYS
Money to wire schools and libraries to the Internet and help fund rural=20
health care should resume flowing within weeks, FCC Chairman Michael Powell=
=20
said on Wednesday, a day after lawmakers attacked the agency for stopping=20
funds. "We are working on this 24 hours a day and I want to assure you that=
=20
were moving aggressively to get those funding commitments going again,"=20
Chairman Powell said. He added that the Commission had no choice but to=20
stop new funding while they made sure the E-Rate program, administered by=20
the Universal Service Administrative Company, complied with government=20
accounting standards. Despite Powell's pledge that the money would flow=20
again soon, a spokesman for USAC said that under current rules, requests=20
would far outstrip available funds. "We will have more commitments to issue=
=20
than money in the bank," USAC spokesman Mel Blackwell said. "We would have=
=20
to wait until we collect more money." Democrats at the FCC attacked Powell=
=20
for not informing them about the accounting issue or his decision to halt=20
the funds.
[SOURCE: Reuters, AUTHOR: Jeremy Pelofsky]
http://www.reuters.com/financeNewsArticle.jhtml?type=3DbondsNews&storyID...
432205

INTERNET TAX MORATORIUM COULD BE RENEWED IN HOUSE
House Judiciary Committee Chairman Sensenbrenner (R-WI) is leading a late=20
charge to extend the Internet tax moratorium through November 1, 2007. But=
=20
the effort is meeting resistance from groups representing local tax=20
authorities. The strategy appears to be to attach the Internet tax language=
=20
to a spending bill. Lawmakers hope o pass a bill the Senate approved in=20
April so it could then go right to President Bush to become law.
[SOURCE: Communications Daily, AUTHOR: Patrick Ross]
(Not available online)

HOUSE PASSES SECOND ANTI-SPYWARE BILL
The U.S. House of Representatives on Thursday unanimously passed a second=20
bill targeting perpetrators of computer "spyware" that hides in users'=20
computers and monitors their activities. The House voted 415 to 0 to=20
stiffen jail sentences for those who use secret surveillance programs to=20
steal credit-card numbers or commit other crimes. The vote came two days=20
after House lawmakers approved a separate bill that establishes=20
multimillion dollar fines for spyware perpetrators. Backers expect to=20
combine the two bills with another spyware bill pending in the Senate,=20
though time is running short in the legislative year.
[SOURCE: Reuters, AUTHOR: Andy Sullivan]
http://www.reuters.com/newsArticle.jhtml;jsessionid=3DQQXWHRBNBBPFUCRBAE...
Y?type=3DtechnologyNews&storyID=3D6443392
Also see --
* Washington Post:
http://www.washingtonpost.com/wp-dyn/articles/A16600-2004Oct7.html
* Los Angeles Times
The Federal Trade Commission filed the first case against software=20
companies accused of infecting computers with intrusive "spyware" and then=
=20
trying to sell people the solution.
http://www.latimes.com/business/printedition/la-fi-rup8.10oct08,1,659181...
ory?coll=3Dla-headlines-pe-business

QUICKLY

PERFORMERS BEAR BRUNT OF REALITY TV AND RUNAWAY PRODUCTION TRENDS
While the overall trend of declining U.S. television and theatrical roles=20
appears to be losing steam, new employment statistics released by Screen=20
Actors Guild (SAG) strongly indicates that actors are bearing the brunt of=
=20
today=92s trend toward more reality programming and runaway production. The=
=20
data, gathered from producers in accordance with SAG=92s collective=20
bargaining agreement, indicates a 1.6% overall decline in TV and theatrical=
=20
member roles in 2003 over 2002. This drop is far more modest than in recent=
=20
years (6.5% in 2002 and 9.3% in 2001) with much of the loss concentrated in=
=20
lead roles for Asian and Latino male lead roles in primetime, which=20
declined 35% and 31% respectively from 2002 to 2003. =93Although we have=20
certainly seen some encouraging signs in this latest data, particularly for=
=20
Native Americans and African-Americans, for many other performers the news=
=20
is not as good,=94 said SAG President Melissa Gilbert. =93We are=
particularly=20
concerned to note the decline in lead roles for Latino and Asian male=20
actors. It=92s been clear for some time that reality television and runaway=
=20
production are having an adverse impact on the number of opportunities=20
available to working actors. Overall, this data ought to be a wake-up call=
=20
to the industry. There is still significant work left to do to increase the=
=20
opportunities for many groups.=94 Latino performers were cast in 10.5=
percent=20
less roles in 2003. This 5.4 percent share of all roles is far below the=20
Latino community=92s 13.7 percent representation in the U.S. population.=20
Asian/Pacific Islanders represent 3.8 percent of the American population,=20
yet continue to secure only 2.5 percent of all TV/theatrical roles. Male=20
Asian leads cast in episodic television were hardest hit =AD declining from=
=20
104 lead roles in the 2002 data to 61 in 2003. Women also continue to be=20
significantly under-represented on television and in the movies.
Links to data at the URL below.
[SOURCE: Screen Actors Guild Press Release]
http://www.sag.org/sagWebApp/application?origin=3Dpage1.jsp&event=3Dbea....
al.framework.internal.refresh&pageid=3DHidden&contentUrl=3D/NewsAndAnnouncem=
ents/announcementLander.jsp&cp=3Dnull&announcementPage=3D/Content/Public/cas=
tingdatareports.htm

GRANT OPPORTUNITY FOR MASSACHUSETTS COMMUNITY AND FAITH-BASED ORGANIZATIONS
$750,000 Total Available for Use of Technology to Serve At-Risk Youth and=20
Homeless Populations
Program and development staff from Massachusetts community- and faith-based=
=20
organizations interested in developing, expanding, and enhancing the=20
capacity of community programs that provide technology skills to homeless=20
individuals and/or at-risk youth are encouraged to attend a free=20
teleconference workshop on the Connections for Tomorrow grants program=20
(http://www.ctcnet.org/c4t/grants).
CONTACT: Tara Kumar/CTCNet, 617-354-0825 x13, tkumar( at )ctcnet.org

DEBATING FOR RATINGS
TV stations will rake in a record $1.5 billion from campaign ads, while=20
offering less and less substantive coverage. Since they are laughing all=20
the way to the bank, why not have a laugh at their expense? See the short=20
video at the URL below.
[SOURCE: Free Press]
http://www.debatingforratings.com
--------------------------------------------------------------
Thanks for reading. Have a great weekend. See ya Tuesday morning.

What do you think -- Cards vs Yankees?
--------------------------------------------------------------
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.
--------------------------------------------------------------

Benton's Communications-related Headlines for 10/07/04

For upcoming media policy events, see http://www.benton.org/calendar.htm.=20
Later today, the agenda for the FCC's open meeting next week will be=
released.

TODAY'S QUESTION: Sirius is betting the farm -- are you ready to pay for=20
radio when you can get it for free?

TELECOM
Powell Defends Handling of E-Rate =91Snafu=92
FCC Takes Steps to Resolve E-Rate Delays
U.S. Chamber of Commerce Calls For Telecom Reforms
SBC Ties Broadband Build to FCC Sharing Rules
SBC, BellSouth Wary Of AT&T, MCI Deals

MEDIA
Some Networks Aren't Sporting Time Delays
Stern Could Get Serious Piece of Sirius
House Passes Satellite Bill
Advisory Committee on Diversity Makes Recommendations

QUICKLY
Powell Lays Out Plan for FCC
CWA: Comcast Forced Workers Out
CDT Says Copyright "Inducement" Bill Still Overbroad
Spyware Bills See Flurry of Action

TELECOM

POWELL DEFENDS HANDLING OF E-RATE 'SNAFU'
After Senators at a Commerce Committee hearing were critical of accounting=
=20
changes the FCC has forced on the administrator of the E-rate program=20
(USAC), FCC Chairman did some damage control Wednesday. The Chairman said=20
the FCC had acted properly to make USAC strictly adhered to federal=20
accounting and GAAP [generally accepted accounting principles] guidelines.=
=20
He said the Commission will issue an instruction letter to USAC to give the=
=20
corporation some certainty -- the letter would not face a vote of the five=
=20
FCC commissioners. Commissioners Adelstein and Copps were critical of how=20
the Chairman has handled the E-rate program. Commissioner Adelstein said,=20
"The Antideficiency Act has been on the books for a long, long time. This=20
program has been on the books for a long time and they've coexisted=20
peacefully and all of a sudden I find that there=92s sudden change of=20
policy... Why? I still don't understand why. I still feel that I need more=
=20
information to understand why." =93With schools and libraries around the=20
country struggling under the weight of often draconian budget cuts, the=20
need to deliver timely E-Rate support has never been more important than it=
=20
is right now,=94 Commissioner Copps said. =93This is about the worst time=
one=20
could imagine for the kind of snafu that has come to light.=94
[SOURCE: Communications Daily, AUTHOR: Howard Buskirk]
(Not available online)
There's more coverage:
* Wall Street Journal:
http://online.wsj.com/article/0,,SB109711695730538964,00.html?mod=3Dtoda...
s_

FCC TAKES STEPS TO RESOLVE E-RATE DELAYS
On Wednesday the FCC announced several steps it is taking to alleviate a=20
temporary cash flow problem in the E-Rate program that provides vital=20
subsidies for telecommunications services and the Internet in the nation=92s=
=20
schools and libraries. While the program has adequate funds to pay all its=
=20
bills, stringent government accounting standards ordered by the FCC to=20
protect the integrity of the $2.25 billion program have temporarily delayed=
=20
approval of new subsidies. The FCC is
working with the administration, Congress and the schools to get funds=20
flowing as soon as possible while still protecting the fund. Over $2=20
billion in support that has already been approved is being paid without=20
delay and will continue to be. On Monday, the FCC directed the corporation=
=20
administering the program, the
Universal Service Administrative Company (USAC) to liquidate $210 million=20
in investments that were made using cash balances. This is designed to=20
expedite approval of
some of the delayed commitments to the schools.
[SOURCE: FCC]
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-252938A1.pdf

US CHAMBER OF COMMERCE CALLS FOR TELECOM REFORMS
The United States Chamber of Commerce Wednesday released a study that finds=
=20
more than 212,000 new jobs would be created and $127 billion a year would=20
be added to GDP over the next five years if telecom regulations were=20
overhauled. Conducted by economist Tom Hazlett of the Manhattan Institute,=
=20
Coleman Bazelon of Analysis Group, John Rutledge of Rutledge Capital=20
Research, and Deborah Allen Hewitt, from the College of William and Mary,=20
the study found: 1) The telecommunications industry lost 380,500 jobs=20
between March 2001 and May 2004 =AD a 29% drop =AD even as employment=
increased=20
in other areas. 2) Because outmoded regulations have created uncertainty=20
for investors, market capitalization in telecommunications between March=20
2001 and July 2004 plummeted 67%. 3) In dollar terms, market capitalization=
=20
fell from $1.135 trillion to $375 billion. 4) Telecom reform could generate=
=20
a total of $58 billion additional capital spending on networks by industry=
=20
sectors over the next five years, with capital spending raising output by=20
$167 billion. 5) Telecom reform has the potential to raise average annual=20
GDP by $127 billion a year over the next five years, a total of $634=20
billion, and increasing average employment levels by more than 212,000 jobs=
=20
over that same period.
The study recommended regulators: A) =93Phase out mandatory network-sharing=
=20
rules.=94 B) =93Make 438 MHz of prime radio spectrum available for=
commercial=20
wireless operators.=94 C) =93Exempt high-speed cable modem and digital=20
subscriber lines from common carrier regulations.=94 D) =93Make Internet=20
services not subject to state
phone service regulations.=94 E) =93Raise funds for universal service=
directly=20
from general tax revenue, rather than from hidden costs that penalize=20
telecommunications competition and the growth of network services.=94 F)=20
=93Distribute universal service funds directly to targeted consumers.=94
Find the study online at
http://www.uschamber.com/broadband/041006telecommstudy.htm
[SOURCE: United States Chamber of Commerce Press Release]
http://www.uschamber.com/press/releases/2004/october/04-131.htm
Also coverage in:
[SOURCE: Communications Daily, AUTHOR: Susan Polyakova]
(Not available online)

SBC TIES BROADBAND BUILD TO FCC SHARING RULES
We will build it, if we can own it. That's the message from SBC, the=20
second-largest U.S. telephone company, which has said it plans to spend $4=
=20
billion to $6 billion to run fiber-optic lines to neighborhoods and new=20
homes over the next five years, offering video and high-speed data to half=
=20
of the customers in its 13-state territory. SBC's upgrade would allow it to=
=20
provide customers with a connection speed of 25 megabits per second, enough=
=20
for four video channels, voice service and fast Internet access. But the=20
company says it needs to know if the FCC will force the company to share=20
those lines with competitors. FCC Chairman Michael Powell is backing a=20
proposal that would allow SBC and other dominant local carriers to share at=
=20
most only a small voice line if they run fiber-optic connections within 500=
=20
feet to homes. A vote on the proposal will likely occur Oct. 14. [We will=20
know tomorrow if it has made the FCC's open meeting agenda.]
[SOURCE: Reuters, AUTHOR: Justin Hyde]
http://www.reuters.com/newsArticle.jhtml?type=3DinternetNews&storyID=3D6...
04

SBC, BELLSOUTH WARY OF AT&T, MCI DEALS
AT&T and MCI may be looking for suitors, but BellSouth and SBC apparently=20
are not interested. SBC will wait and see if the long distance companies'=20
stock prices fall further. Sprint is interested in acquisitions, but only=20
of wireless assets.
[SOURCE: Wall Street Journal]
http://online.wsj.com/article/0,,SB109710499517938648,00.html?mod=3Dtoda...
s_
(requires subscription)

MEDIA

SOME NETWORKS AREN'T SPORTING DELAYS
The doodoo is still hittin' the fan over Sunday's NASCAR broadcast. NBC and=
=20
CBS aren't using time delays to bleep expletives that could prompt FCC=20
indecency fines -- and blaming the FCC for uncertainty about what can and=20
cannot be said. NASCAR fined and penalized the offending driver. It=92s too=
=20
soon to tell what action, if any, the FCC=92s Enforcement Bureau might take,=
=20
a Commission spokeswoman said.
[SOURCE: Communications Daily, AUTHOR: Tania Panczyk-Collins, Howard=
Buskirk]
(Not available online)
See also --
Broadcasting&Cable
http://www.broadcastingcable.com/article/CA469815?display=3DBreaking+New...
ferral=3DSUPP
(free access for Benton's Headlines subscribers)

STERN COULD GET SERIOUS PIECE OF SIRIUS
Howard Stern, the country's top-rated disc jockey, will leave broadcast=20
radio for Sirius Satellite Radio in about a year. Sirius will put up $100=20
million over the next five years for "compensation of show cast and staff,=
=20
overhead, construction costs for a dedicated studio, a budget for the=20
development of additional programming and marketing concepts, and payments=
=20
to Stern and his agent." Sirius hopes the move will add at least one=20
million new subscribers to the service.
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
http://www.broadcastingcable.com/article/CA469365.html?display=3DBreakin...
ws&referral=3DSUPP
(free access for Benton's Headlines subscribers)
Being that he's the "King of All Media," the Stern move is getting a lot of=
=20
coverage --
* Washington Post:
http://www.washingtonpost.com/wp-dyn/articles/A10953-2004Oct6.html
* Wall Street Journal:
http://online.wsj.com/article/0,,SB109706646880937838,00.html?mod=3Dtoda...
s_page_one
http://online.wsj.com/article/0,,SB109710483522738639,00.html?mod=3Dtoda...
s_personal_journal
* Los Angeles Times:
http://www.latimes.com/news/printedition/front/la-fi-stern7oct07,1,42223...
tory?coll=3Dla-headlines-frontpage
http://www.latimes.com/business/printedition/la-fi-sirius7oct07,1,312890...
ory?coll=3Dla-headlines-pe-business
http://www.latimes.com/business/printedition/la-fi-radio7oct07,1,7066761...
ry?coll=3Dla-headlines-pe-business
* USAToday
http://www.usatoday.com/printedition/money/20041007/1b_siriusstern07.art...
* New York Times:
http://www.nytimes.com/2004/10/07/business/media/07radio.html
http://www.nytimes.com/2004/10/07/business/media/07adcol.html?oref=3Dlogin

HOUSE PASSES SATELLITE BILL
The House passed the Satellite Home Viewer Extension and Reauthorization=20
Act Wednesday, renewing satellite companies' right to carry local=20
TV-station signals. The legislation aims to help satellite companies to=20
better compete with cable's mix of national networks and local-market TV=20
signals. The House bill gives satellite companies expanded abilities in the=
=20
importation of distant network signals to unserved markets and requiring=20
them to comply with the same kind of customer privacy constraints applied=20
to cable. The National Association of Broadcasters praised passage of the=20
bill (see link to Press Release below), but the bill was criticized by the=
=20
Digital Transition Coalition which pushed for provisions that would have=20
given DBS companies the ability to import distant digital network signals=20
to so-called "white areas" -- those unserved by a local network affiliate=20
-- similar to their right to deliver distant analog signals to unserved=20
customers.
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
http://www.broadcastingcable.com/article/CA469808.html?display=3DBreakin...
ws&referral=3DSUPP
(free access for Benton's Headlines subscribers)
NAB Press Statement
http://www.nab.org/Newsroom/PressRel/statements/100604SHVIAbill.htm

ADVISORY COMMITTEE ON DIVERSITY FOR COMMUNICATIONS IN THE DIGITAL AGE MAKES=
=20
RECOMMENDATIONS
The Advisory Committee on Diversity for Communications in the Digital Age=20
held its fourth meeting on Monday, October 4, 2004. During the meeting, the=
=20
Committee adopted two resolutions. The first resolution "strongly urges the=
=20
Commission to maintain effective Designated Entity rules to increase=20
opportunities for small and minority and women owned businesses." The=20
second resolution urges the Commission to explore "possible ways to foster=
=20
ownership diversity in the commercial FM radio band." The text of the two=20
resolutions and additional explanatory material is available on the=20
Committee's webpage, at http://www.fcc.gov/DiversityFAC/.
[SOURCE: FCC]
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-252927A1.doc

QUICKLY

POWELL LAYS OUT PLAN FOR FCC
NPR's Robert Siegel talks to FCC Chairman Michael Powell about the FCC's=20
involvement in the transition to digital TV. They also discuss efforts to=20
combat "indecency" on television and radio broadcasts, and about the=20
evolving role of the FCC in regulating what's seen and heard by the=20
American public.
[SOURCE: All Things Considered audio]
http://www.npr.org/templates/story/story.php?storyId=3D4073672

CWA: COMCAST FORCED WORKERS OUT
The Communications Workers of America claims that 54 Comcast employees in=20
the Pittsburgh area were forced to accept layoffs or face future job losses=
=20
with no severance support in charges filed with the National Labor=20
Relations Board. Comcast has "attempted to intimidate workers by telling=20
them the existing severance package would expire Oct. 5, and that layoffs=20
after that date would include no severance benefits,=94 CWA claims. =93This=
=20
means that families would have no financial support to help weather this=20
period of joblessness.=94 The union reports that the job cuts are mainly=20
affecting longer term, experienced workers who repair system outages. The=20
union represents about 500 Comcast Pittsburgh-area employees.
[SOURCE: Multichannel News]
http://www.multichannel.com/article/CA469584.html?display=3DBreaking+News
(requires subscription)

CDT SAYS COPYRIGHT "INDUCEMENT" BILL STILL OVERBROAD
CDT Wednesday urged the Senate Judiciary Committee not to pass S.2560, the=
=20
"Inducing Infringements of Copyright Act." Though intended to combat=20
widespread copyright infringement on peer-to-peer networks, as drafted the=
=20
bill would threaten a range valuable consumer technologies.
[SOURCE: Center for Democracy and Technology]
CDT letter to Senate Judiciary Committee
http://www.cdt.org/copyright/20041006cdt.pdf

SPYWARE BILLS SEE FLURRY OF ACTION
The House passed an anti-spyware bill on October 5 that would give the=20
Federal Trade Commission explicit authority over a variety of deceptive=20
practices and require information collection software to provide notice=20
before installation. A second bill, creating criminal penalties for the=20
worst forms of spyware, is scheduled for consideration by the House today=20
and is expected to pass easily. Additionally, California Governor Arnold=20
Schwarzenegger signed a spyware bill on September 28, prohibiting several=20
deceptive spyware related practices in California.
* CDT Letter to Senate Commerce Committee on HR 2929, The SPY ACT
http://www.cdt.org/privacy/spyware/20040924cdtcommerce.pdf
* CDT Letter to Senate Judiciary Committee on HR 4661, The I-SPY Act
http://www.cdt.org/privacy/spyware/20040924cdtjudiciary.pdf
* Text of HR 2929, Securely Protect Yourself Against Cyber Trespass Act:=20
http://thomas.loc.gov/cgi-bin/query/z?c108:H.R.2929:
* Text of HR 4661, Internet Spyware Prevention Act:=20
http://thomas.loc.gov/cgi-bin/query/z?c108:H.R.4661:
* Text of California SB 1436:=20
http://www.leginfo.ca.gov/cgi-bin/postquery?bill_number=3Dsb_1436&sess=3...
&house=3DB&author=3Dmurray
[SOURCE: Center for Democracy and Technology]
(http://www.cdt.org)
--------------------------------------------------------------
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.
--------------------------------------------------------------

Benton's Communications-related Headlines for 10/06/04

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

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

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

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

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

MEDIA POLICY

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

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

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

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

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

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

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

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

TELECOM POLICY

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

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

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

QUICKLY

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

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

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

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

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

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

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

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

CORRECTION: The Technology Opportunities Program can now be found online at
http://www.ntia.doc.gov/top/
--------------------------------------------------------------
Communications-related Headlines is a free online news summary service
provided by the Benton Foundation (www.benton.org). Posted Monday through
Friday, this service provides updates on important industry developments,
policy issues, and other related news events. While the summaries are
factually accurate, their often informal tone does not always represent the
tone of the original articles. Headlines are compiled by Kevin Taglang
(headlines( at )benton.org) -- we welcome your comments.
--------------------------------------------------------------

Benton's Communications-related Headlines for 10/05/04

Today's agenda includes: an E-Rate hearing at the Senate Commerce
Committee, a Capitol Hill briefing on Wireless Broadband and Unlicensed
Spectrum, and a panel discussion on What's at Stake for Technology and
Telecom in the 2004 Election. Local affiliates of ABC, NBC and CBS [and
PBS, of course] will air tonight's debate between Vice President Dick
Cheney and Sen John Edwards. FOX affiliates will air Game 1 of the Twins vs
the Yankees. FOX is happy for you to pay to see the event on the FOX news
channel.

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

TODAY'S QUESTION: Has the choice for Vice President ever affected your vote?

TELEVISION
Are You Ready for Some HDTV?
Fox Calls for DC TV Renewals

JOURNALISM
Media Mogul Maelstrom
Journalism Without Profit Margins

QUICKLY
TOP Grantees Announced
Supreme Court Upholds Do-Not-Call Registry
Cities Losing Nearly $500M in Modem Fees

TELEVISION

ARE YOU READY FOR SOME HDTV?
FCC Chairman Michael Powell unveiled an online effort (www.dtv.gov) to help
consumers better understand the digital transition. The site includes a
shoppers' guide, FAQs, and a link to another online HDTV effort
(www.checkhd.com), the industry-backed portal created by Decisionmark that
will bring up available HDTV programming in a particular market, linked to
zip code. Chairman Powell said it was possible that the FCC would decide a
number of key DTV transition issues by year's end, including multicasting
must-carry, public interest obligations, and just how a DTV-ready house is
to be defined. According to statute, when 85% of the TV homes in a market
can receive a DTV signal, the FCC can begin reclaiming spectrum for
auction. There were a dozen of so public activists outside the FCC
headquarters Monday, complaining that the FCC press conference/panel
session on HDTV was simply an effort to sell TV sets. When asked to respond
to that complaint, Powell said that it was not an attempt to sell sets, but
to give consumers the information to buy new sets in a transition mandated
by the government. He said the public interest issues were being addressed
in pending FCC rulemakings but that this was a consumer-targeted effort.
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
http://www.broadcastingcable.com/article/CA458220?display=Breaking+News&...
(free access for Benton's Headlines subscribers)
Read more about the event and the reaction of public interest advocates at
http://www.mediachannel.org/new/
The FCC Press Release for the event is available at
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-252851A1.doc

FOX CALLS FOR DC TV RENEWALS
Fifty television stations in DC, Maryland, Virginia and West Virginia did
not get speedy license renewals from the FCC and Fox Television Stations is
asking for immediately renew for two Washington, DC stations. The licenses
for the two stations were challenged by public interest advocates. WTTG-TV
, the local FOX affiliate, is being challenged by the Parent's Television
Council over alleged indecent content on the station. But the station has
not received a letter of inquiry from the FCC and the Commission should
not "delay the grant of WTTG-TV's renewal on the basis of alleged
complaints about which [FOX] has not even been made aware."
The United Church of Christ (UCC) and Center For Digital Democracy (CDD)
are challenging the local UPN affiliate for not providing three hours per
week of children's educational/informational programming. Fox says that
because the UCC and CDD take issue with the depiction of conflict and
violence in the shows WDCA airs for kids, it should not be allowed to use
WDCA's license renewal "as an opportunity to conduct a wholesale re-write
of the children's television rules." Fox, WDCA-TV, the shows' distributors
and the kids TV academician that consulted on the shows, all argue that
"the responsible portrayal of violence and conflict can teach children
valuable lessons." Choosing such shows, they argue, is within the
reasonable discretion of the licensee.
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
http://www.broadcastingcable.com/article/CA458313.html?display=Breaking+...
(free access for Benton's Headlines subscribers)

JOURNALISM

MEDIA MOGUL MAELSTROM
Last month, Viacom Chairman Sumner Redstone told an audience in Hong Kong,
From a "Viacom standpoint, the election of a Republican administration is
a better deal because the Republican administration has stood for many
things we believe in, deregulation and so on." In the widely-reported
remarks, he added: "I vote for what's good for Viacom." With Viacom's many
holdings in journalism -- including CBS News -- should Redstone be making
such an endorsement? The debate is on. Critics say Redstone may have risked
exposing the entire media sector to the unwelcome appearance of coziness
with federal regulators. Opponents of media consolidation have long worried
that media bosses could be compromised or conflicted in trying to balance
their Washington agendas and the mission of their newsgathering operations.
"We always assumed that a little dancing and whispering back and forth
might be going on behind the scene" between political leaders and media
moguls, says Gene Kimmelman, a top lobbyist for Consumers Union. "This
overtly states what we have known all along." Viacom officials say his Bush
endorsement was merely an honest answer to a question that he hadn't expected.
[SOURCE: MSNBC, AUTHOR: Johnnie L. Roberts]
http://www.msnbc.msn.com/id/6173187/site/newsweek/

JOURNALISM WITHOUT PROFIT MARGINS
What, if any, special content or services does the public gain from the
relatively few noncommercial news operations? What advantages do these
media have over their for-profit cousins? The broadest answer seems to be
that readers and viewers gain streams of information vetted by journalists
more attuned to public service than to circulation, ratings or the bottom
line. Less-commercial media can think more in terms of social
responsibility, with less oppression from short-term profit demands. In
content, that often leads to more coverage of foreign affairs, the economy
and government, to less fluff and celebrity stalking, and to extra
tolerance for controversy and alternative views. The journalism may or may
not be superior to that produced elsewhere, but it comes from newspeople
who are aiming high and relishing their independence.
[SOURCE: American Journalism Review, AUTHOR: Carl Sessions Stepp]
http://www.ajr.org/Article.asp?id=3758

QUICKLY

TOP GRANTEES ANNOUNCED
On October 4, 2004, NTIA announced the award of $14.4 million in Technology
Opportunities Program (TOP) grants to 27 non-profit organizations,
including state, local and tribal governments, in 22 states and the
District of Columbia. TOP received 494 applications for FY 2004 funds,
requesting $277.1 million. TOP grants, matched by $16.9 million in
contributions from the private sector and state and local organizations,
demonstrate how advanced telecommunication and information technology can
address public concerns in areas such as economic development, housing,
public safety, health and e-government. More information on TOP-supported
projects, the list of FY 2004 awards, and a searchable database of
applications submitted in FY 2004 at the URL below.
Congratulations to the winners and to NTIA!
[SOURCE: National Telecommunications and Information Administration]
http://www.ntia.doc.gov/otiahome/top/whatsnew/whatsnew.htm#FY2004_Awards

SUPREME COURT UPHOLDS DO-NOT-CALL REGISTRY
Without comment, the Supreme Court rejected an appeal by American
Teleservices Association (telemarketers) who argued that the popular
anti-telemarketing registry, known as the Do-No-Call List, imposed improper
limits on their rights to free speech. The Court's decision to not hear the
case was the last legal hurdle for the list.
[SOURCE: Washington Post, AUTHOR: Caroline E. Mayer]
http://www.washingtonpost.com/wp-dyn/articles/A7042-2004Oct4.html
(requires registration)

CITIES LOSING NEARLY $500M IN MODEM FEES
In a Sept. 30 petition to the U.S. Supreme Court, the National League of
Cities, the National Association of Telecommunications Officers and
Advisors and the United Conference of Mayors asked the Court to overturn
the FCC and re-establish the right of cities to tax cable's high-speed-data
service, just as they do cable's video-programming revenue. The petitioners
say they are losing nearly $500 million yearly in the wake of a decision by
federal regulators to block local regulation of cable-modem service.
"Clearly, revenue losses of that magnitude have enormous adverse financial
consequences for the nation's local governments," the cities said. "These
revenues would be available for any number of projects and services that
make communities safer and more livable, and [they would] provide
high-quality education services to allow citizens to make full use of the
rapid changes in technology."
[SOURCE: Multichannel News, AUTHOR: Ted Hearn]
http://www.multichannel.com/article/CA458218.html?display=Breaking+News
(requires subscription)
--------------------------------------------------------------
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.
--------------------------------------------------------------