Benton RSS Feed

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

MEDIA
Spectrum Return Trumps HDTV
Public Television's 'Heat Shield' Withers Under White House Pressure
Clear Channel Settles Airplay Case
Powell Says Media Leaders Should Move Quickly to Ensure Security
Kids' Activists Concerned About DTV
Russian TV Newsman Fired in Media Crackdown

TELECOM
Friction Mounts Over Phone Access Fees
Regulators Tackle Wireless Broadband Issues
McCaw Unveils Wireless Broadband Service
Let Telecom Agreements Bloom

NEW RELEASES
A Failure To Communicate: Reforming Public Policy in the=20
Telecommunications Industry
ICANN Releases Draft Whois Privacy Reports

MEDIA

SPECTRUM RETURN TRUMPS HDTV
Leaders of the House Commerce Committee Wednesday heaped praise on the=20
Federal Communications Commission's plan to accelerate the digital-TV=20
transition and the committee's chairman, Rep Joe Barton (R-TX) said that=20
government spectrum needs trumped ubiquitous high-definition television=20
(HDTV). Television station owners oppose the plan and may start to feel=20
some heat after hearing from legislators. FCC Media Bureau Chief Ken Ferree=
=20
told lawmakers that the FCC must be proactive in defining how the 85% test=
=20
will be reached or the transition won't be completed for decades. "If we=20
wait for 85% of consumers to have digital equipment in their homes, we=20
could be waiting until 2050 or beyond," he said. Perhaps surprisingly, Rep=
=20
Barton was even supportive of the FCC's plan to use a portion of proceeds=20
from auctioning analog channels to pay the $50-$100 for supplying=20
over-the-air-only TV households with a digital-to-analog converter that=20
would keep their old sets functioning, saying that the subsidy would be a=20
bargain if it speeds the creation of new wireless and other telecom=
businesses.
Communications Daily reports that Rep Barton asked, "Why shouldn't the=20
Committee just uphold the 2006 deadline and pay for converter boxes=94 for=
=20
the poor and elderly?
CEA President Gary Shapiro and FCC Media Bureau Chief Kenneth Ferree had=20
replies, but only after *conspicuous moments of silence.* [Imagine that...=
=20
in Washington, DC.] NAB President Edward Fritts said nothing.
Former FCC Commissioner Gloria Tristani encouraged Congress to require the=
=20
FCC "to take advantage of the transition to digital to reestablish=20
meaningful public interest obligations for America=92s television=20
broadcasters." Ms. Tristani, Managing Director of the Office of=20
Communication of the United Church of Christ, stressed that clearly-defined=
=20
public interest guidelines must be in place before the FCC makes decisions=
=20
on the transition from analog to digital broadcasting. "The public deserves=
=20
to know what benefits it will get from the digital largesse that has been=20
gifted to broadcasters," said Tristani. "That benefit should include=20
reasonable minimums of local civic and electoral discourse =85 and for=20
children, commensurate amounts of educational and informational=20
programming, a prohibition of commercial website links embedded in=20
children=92s programming and incorporation of children=92s privacy=
protections."
[SOURCE: Broadcasting&Cable, AUTHOR: Bill McConnell]
http://www.broadcastingcable.com/article/CA422817?display=3DBreaking+News
(requires subscription)
Additional coverage from:
TVWeek http://www.tvweek.com/news/web060204.html#lawmakers
WHY NOT ENFORCE 2006 DTV TRANSITION DEADLINE, BARTON ASKS
[SOURCE: Communications Daily, AUTHOR: Terry Lane]
(Not available online)
Office of Communication of the United Church of Christ Press Release
http://www.ucc.org/news/u060204.htm
Testimony of NAB President Eddie Fritts
http://www.nab.org/Newsroom/PressRel/testimonies/FrittsDTV060204.asp
Testimony of NCTA President Robert Sachs
http://www.ncta.com/pdf_files/robert_sachs_testimony_6-02-04.pdf
Testimony of Thomas M. Lenard, Senior Fellow at the Progress & Freedom=20
Foundation
http://www.pff.org/issues&pubs/communications/testimony/060204lenarddtv.pdf

PUBLIC TELEVISION'S 'HEAT SHIELD' WITHERS UNDER WHITE HOUSE PRESSURE
Pingree writes: Public broadcasting has found itself in the crosshairs of a=
=20
partisan firing squad. New and intensifying ideological pressures from the=
=20
Bush Administration have forced the public broadcaster to add new programs=
=20
and alter others, in an attempt to be "more balanced" in the view of the=20
current leadership. At a time when Americans are finding it more and more=20
difficult to get past the clutter and partisanship on commercial TV and=20
radio to find truthful sources of information about their government, this=
=20
ideological pressure may gag one of the few sources of independent,=20
substantive news and commentary that Americans can count on. We cannot let=
=20
partisans drive an ideological stake in the heart of public broadcasting.=20
At a time when media consolidation makes it more and more difficult for=20
Americans to hear diverse points of view and to be exposed to substantive,=
=20
challenging journalism, we must save public broadcasting from these=20
attempts to meddle with its editorial independence.
[SOURCE: MediaChannel, AUTHOR:Chellie Pingree, President of Common Cause]
http://www.mediachannel.org/views/dissector/affalert206.shtml

CLEAR CHANNEL SETTLES AIRPLAY CASE
Nobody in Particular Presents -- a Denver concert promoter -- and the=20
nation's largest owner of radio stations, Clear Channel, have agreed to a=20
settlement of a case brought by the promoter accusing Clear Channel of=20
violating federal and state laws by reducing airplay for recording artists=
=20
who didn't hire the company's concert promotion unit for their=20
performances. Although in April a federal judge ruled that there was=20
sufficient evidence to present the case to a jury, Nobody in Particular=20
Presents faced financial pressure to settle the case and pay some bills.=20
"Clear Channel admitted no wrongdoing in connection with the lawsuit, but=20
we are pleased to get the matter behind us," Clear Channel Executive Vice=20
President Andrew Levin said.
[SOURCE: Los Angeles Times, AUTHOR: Jeff Leeds]
http://www.latimes.com/business/printedition/la-fi-clear3jun03,1,1299584...
ry?coll=3Dla-headlines-pe-business

POWELL SAYS MEDIA LEADERS SHOULD MOVE QUICKLY TO ENSURE SECURITY
FCC Chairman Michael Powell wants the new Media Security & Reliability=20
Council to begin implementing developed the past two years to ensure news=20
and information remain available in a crisis. The Chairman suggested there=
=20
is urgency to this since a number of events this year -- major sporting=20
events, global summits, political party conventions, even the Presidential=
=20
election -- could be viewed as terrorist targets. The Council's chairman,=20
David Barrett of Hearst-Argyle TV, said an infrastructure survey by the=20
first MSRC found only 15% of radio stations, 47% of TV stations and 71% of=
=20
cable operators had a disaster recovery plan. Among those, 7% of radio=20
stations, 17% of TV stations and 58% of cable operators had rehearsed the=20
plan. Mr. Barrett said one goal is for all media to have and rehearse a=20
plan. Thomas Fitzpatrick of Giuliani Partners, who heads the Council's=20
Local Coordination Working Group, intends to develop a plan to strengthen=20
local coordination among media, government and first responders: =93For us=
to=20
be able to reach mass groups of people during a crisis, we need=94 media=20
help, Mr. Fitzpatrick said. =93To accomplish the goal of protecting people,=
=20
there has to be a tremendous public education program in place.=94=20
Newscasters should be doing research now, Chairman Powell suggested, so=20
they can provide context to what is said during press briefing aired on TV=
=20
and radio. Broadcasters and government officials also need to be prepared=20
with experts who can speak to the public on scientific issues, officials=20
said. =93You have to get scientific people that can bring it down to the=20
level that an 8th grader can understand. Otherwise, it=92s not going to=20
work,=94 a local DC official said.
[SOURCE: Communications Daily, AUTHOR: Brigitte Greenberg, Tania=20
Panczyk-Collins]
(Not available online)

KIDS' ACTIVISTS CONCERNED ABOUT DTV
Senator Sam Brownback (R-KS) and FCC Commissioners Kathleen Abernathy,=20
Michael Copps and Jonathan Adelstein will join Children Now, the American=20
Academy of Pediatrics and the American Psychological Association at a=20
half-day conference June 9 about the impact of the digital transition on=20
kids, including "intrusive interactive advertising." Heading the list of=20
topics are what new public interest obligations should be put on=20
broadcasters and the possible "adverse implications of digital TV=20
technology." There will also be a panel, moderated by CBS News' Joie Chen=20
looking at the educational and entertainment upside of digital TV.
For more information see=20
http://www.childrennow.org/media/dtv-convening/dtv-brief.pdf
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
http://www.broadcastingcable.com/article/CA422780?display=3DBreaking+News
(requires subscription)

RUSSIAN TV NEWSMAN FIRED IN MEDIA CRACKDOWN
In what appears to be the latest step by President Vladimir Putin in=20
tightening control over the news media as well as other areas of Russian=20
public life, a prominent TV journalist was fired and the current affairs=20
show he appeared on was canceled after the show aired an interview with the=
=20
widow of a Chechen separatist leader, Zelimkhan Yandarbiyev, who was killed=
=20
in Qatar. The interview was seen in some parts of the country, but abruptly=
=20
haled before it was aired in Moscow. "One of the best television hosts in=20
Russia and one of the best analytic and information programs have not only=
=20
been censored, they have been destroyed, which definitely indicates that we=
=20
live in a police state," the Russian PEN Center of writers, poets and=20
essayists said.
[SOURCE: New York Times, AUTHOR: Seth Mydans]
http://www.nytimes.com/2004/06/03/international/europe/03russ.html
(requires registration)
Additional coverage in:
WSJ=20
http://online.wsj.com/article/0,,SB108619315000926911,00.html?mod=3Dtoda...
s_page_one

TELECOM

FRICTION MOUNTS OVER PHONE ACCESS FEES
Access charges were created in the 1980s, when the government broke up the=
=20
AT&T monopoly. At the time, the idea of access charges was that pricey=20
long-distance calls would continue to generate money to help maintain local=
=20
networks and keep local service affordable for most people. But a lot has=20
changed in twenty years. Long-distance phone calls have become inexpensive=
=20
for many consumers and flat-rate plans don't charge by the minute. Local=20
phone carriers have proliferated, local companies sell long-distance, and=20
consumers can bypass traditional phone companies either by using wireless,=
=20
or by signing up for phone service over the Internet or with a cable=20
company. Consumers pay about one cent per minute in access fees on=20
state-to-state calls. For long-distance phone companies that must connect=20
to the local phone lines of the caller and the person being called, access=
=20
charges make up an enormous portion of expenses. They provide significant=20
revenue to the Bell companies that own most of the local phone lines on=20
which calls begin and end. The nation's largest telecommunications carriers=
=20
collectively spend an estimated $25 billion each year on fees for access to=
=20
each other's networks. Nearly everyone in the industry agrees that the=20
Byzantine maze of fees and the regulations that govern them have become=20
counterproductive and invite cheating. The rules also can't cope=20
intelligently with new technologies, such as Internet calling, critics say.=
=20
"The system is totally dysfunctional," says Scott Cleland, chief executive=
=20
of Precursor Group, a research firm in Washington, D.C. "Everybody can game=
=20
the system and there is every economic incentive to game the fees or cheat=
=20
on them."
[SOURCE: Wall Street Journal, AUTHOR: Shawn Young shawn.young( at )wsj.com and=20
Almar Latour almar.latour( at )wsj.com]
http://online.wsj.com/article/0,,SB108621672093927375,00.html?mod=3Dtoda...
s_marketplace
(requires subscription)

REGULATORS TACKLE WIRELESS BROADBAND ISSUES
At the Wireless Communications Association conference in Washington,=20
policymakers from the FCC and the National Telecommunications and=20
Information Administration spoke about promoting the emerging wireless=20
broadband industry. The regulators are trying to more efficiently manage=20
radio spectrum to encourage private companies to bring broadband to the=20
shrinking number of Americans who do not have it. The FCC has already been=
=20
working to change the allocation of spectrum and is working on a policy=20
that's productive for broadband growth. The agency is looking at=20
reallocating spectrum for broadcast television to wireless and expanding=20
bands in the 5GHz range. The FCC is expected to meet June 10 to discuss=20
reforming the 2.5GHz radio bands to 2.7GHz and making it available for=20
licensed wireless broadband use.
[SOURCE: C-Net|News.com, AUTHOR: Richard Shim]
http://news.com.com/Regulators+tackle+wireless+broadband+issues/2100-103...
5224641.html?tag=3Dnefd.top

MCCAW UNVEILS WIRELESS BROADBAND SERVICE
As expected, U.S. mobile phone industry pioneer Craig McCaw said on=20
Wednesday he was poised to launch a wireless broadband Internet service in=
=20
the United States and several other countries. McCaw's company, Clearwire=20
Inc., will target up to 20 markets by the end of next year where telephone=
=20
and cable companies have been slow to roll out wired broadband, offering=20
data downloads comparable to cable modems and basic telephone service.
[SOURCE: Reuters]
http://www.reuters.com/newsArticle.jhtml;jsessionid=3DBHDM05RWHCRB2CRBAE...
Y?type=3DtechnologyNews&storyID=3D5326815
Additional coverage in:
WP http://www.washingtonpost.com/wp-dyn/articles/A10974-2004Jun2.html
(requires registration)
LATimes=20
http://www.latimes.com/business/printedition/la-fi-rup3.6jun03,1,2366488...
ry?coll=3Dla-headlines-pe-business
(requires registration)

LET TELECOM AGREEMENTS BLOOM
Randolph J. May of The Progress & Freedom Foundation, Adam Thierer of the=20
Cato Institute and James L. Gatusso of the Heritage Foundation have teamed=
=20
up on an Washington Times op-ed urging state utility commissions to avoid=20
"putting their own regulatory stamp on the freely negotiated agreements,"=20
such as those reached by Qwest with Covad and SBC with Sage Telecom. The=20
conservative policy experts fear "state public utility commissioners are=20
determined to throw roadblocks into the negotiating process, and there have=
=20
been indications the FCC may be meddling as well by, say, requesting=20
negotiation information and pressuring parties to use mediators."=20
Subjecting such agreements to state 'public interest' review would cause=20
the FCC-desired goal to fail "since the incentive to negotiate will be=20
severely diminished."
See the full op-ed at=20
http://www.washingtontimes.com/commentary/20040529-110729-2666r.htm
[SOURCE: Progress and Freedom Foundation Press Release]
http://www.pff.org/news/news/2004/060204negotiate.html
The Progress & Freedom Foundation is a think tank that studies the digital=
=20
revolution and its implications for public policy.

NEW RELEASES

A FAILURE TO COMMUNICATE: REFORMING PUBLIC POLICY IN THE TELECOMMUNICATIONS=
=20
INDUSTRY
The Telecommunications Act of 1996 has largely failed in its three-part=20
mission to decrease telephone service prices, increase service quality, and=
=20
create high-tech networks. The author explores how the Act fell short of=20
its goals and identifies some initial steps toward revitalizing the=20
telecommunications sector.
[SOURCE: Economic Policy Institute, AUTHOR: Stephen Pociask]
http://www.epinet.org/content.cfm/books_failure

ICANN RELEASES DRAFT WHOIS PRIVACY REPORTS
Three task forces at ICANN, the domain name coordination group, have=20
released for public comment reports on policy issues surrounding the Whois=
=20
database of domain name registration information. The reports examine the=20
mining of Whois domain name holder data by advertisers, privacy protections=
=20
for Whois data, and the accuracy of Whois information. CDT has called for a=
=20
balanced Whois policy that does more to protect the private information of=
=20
individuals who register domain names - an approach endorsed by one of the=
=20
task force reports.
Generic Names Supporting Organization (with links to reports):=20
http://gnso.icann.org/
More information on Domain Name Management Policy: http://www.cdt.org/dns/
[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.
--------------------------------------------------------------

The DTV transition, FTC and Commerce Department nominations, Satellite Home=
=20
Viewer Extension and Reauthorization Act... Congress is back and you're=20
going to be in trouble. Hey la, hey la, our Congress is back.
For these and other upcoming media policy events (we promise to NOT sing=20
about them), see http://www.benton.org/calendar.htm

Communications-related Headlines is a free online news summary service=20
provided by the Benton Foundation (www.benton.org). Posted Monday through=20
Friday, this service provides updates on important industry developments,=20
policy issues, and other related news events. While the summaries are=20
factually accurate, their often informal tone does not always represent the=
=20
tone of the original articles. Headlines are compiled by Kevin Taglang=20
(headlines( at )benton.org) -- we welcome your comments.

TELECOM
Could Telephone Rates Become a Campaign Issue?
Phony Federalists
Qwest and MCI Set Lease Rates For Local Service
Bells Loosen Their Grip

MEDIA
XM Asks Subscribers to help Petition the FCC, Congress
Political Payoffs
Congress and FCC Take Aim
Hill Pushes Narrated TV For Blind
FCC Begins EEO Audits
Cable Gears up for Digital-ready TV Sets

QUICKLY
Public Voice WSIS Sourcebook
Truckers Warm to Wireless Hot Spots

TELECOM

COULD TELEPHONE RATES BECOME A CAMPAIGN ISSUE?
Gas, milk and... local telephone service? Washington insiders are wondering=
=20
if and when someone will pull the trigger linking the Bush Administration=20
to rising prices. Even though many people can't even understand their phone=
=20
bills, a decision by the Bush Administration to not seek a Supreme Court=20
review of an appeals court ruling on phone network leasing rates could,=20
well, decide the election. In the eyes of Blair Levin, an analyst at=20
investment firm Legg Mason, the issue has the potential to sway the=20
presidential race in four closely contested states: Ohio, Florida,=20
Pennsylvania and Michigan. Thanks to aggressive state regulation, Ohio and=
=20
Michigan consumers have seen telecom competition flourish and phone bills=20
shrink. Therefore, Levin said, any rate increases might influence their=20
vote for president. Similarly, the recent public outcry in Florida over a=20
proposed rate hike might inflame voters again. With a close election=20
predicted, a swing of 10,000 to 20,000 voters in any one of the four states=
=20
might be enough to determine the election, Mr. Levin said. "It's not clear=
=20
the Bush administration controls gas prices," he said, "but one could argue=
=20
that they have more control over phone rates." A trade group representing=20
Bell competitors called CompTel/ASCENT is "seriously thinking" about an ad=
=20
blitz on phone rates as is AARP, a nonprofit advocacy organization for=20
people 50 and older.
[SOURCE: Los Angeles Times, AUTHOR:Jube Shiver Jr]
http://www.latimes.com/business/printedition/la-fi-presphone1jun01,1,665...
.story?coll=3Dla-headlines-pe-business

PHONY FEDERALISTS
This op-ed strongly supports FCC Chairman Michael Powell's stand on=20
(de)regulating the rates telephone companies charge competitors to lease=20
parts of their networks. Over Chairman Powell's objections, the FCC adopted=
=20
rules allowing states to set those rates, but a federal court found the=20
rules to be "lawless," the authors write. They ask that the FCC and=20
Solicitor General Theodore Olson not seek Supreme Court review of a March 2=
=20
decision by the U.S. Court of Appeals in Washington, D.C.: "The appeals=20
court decision should stand. Deregulation works, recent history proves it,=
=20
and a proper understanding of the principle known as federalism supports=20
it." They conclude: "This is more than a communications industry issue. It=
=20
is part of a much larger argument over the proper role of states in the=20
regulatory process, and how to limit government interference in competitive=
=20
markets. Federalism is a treasured principle that is crucial for=20
maintaining balance between competing governmental powers, and for=20
fostering a dynamic economic environment. Properly applied, it can open the=
=20
American economy to a new birth of growth -- growth in new learning tools=20
for schools and universities; growth in access to the very best medical=20
consultation for people in remote areas as well as in big cities; growth in=
=20
new technologies as we harness the greater bandwidth to the greater dreams=
=20
of inventors and entrepreneurs; growth that benefits every worker and=20
family in our nation. The real federalism we speak of increases freedom --=
=20
and with it the fruits of freedom."
[SOURCE: Wall Street Journal, AUTHORS: John Engler, the former governor of=
=20
Michigan (1991-2003), C. Boyden Gray, former counselor to the President's=20
Task Force on Regulatory Relief (1981-1989), and Kenneth Starr, the=20
incoming dean of the Pepperdine Law School.]
http://online.wsj.com/article/0,,SB108605009909825376,00.html?mod=3Dtoda...
s_opinion
(requires subscription)
Mr. Starr will be speaking tomorrow on "The Supreme Court and the Future of=
=20
the Telecom Act of 1996." See=20
http://www.pff.org/news/news/2004/052704starr.html for details.

QWEST AND MCI SET LEASE RATES FOR LOCAL SERVICE
Instead of heading to the family BBQ, representatives of the nation's=20
largest phone companies were requested by FCC officials to spend the=20
holiday weekend at the Commission's Washington, DC headquarters negotiating=
=20
network lease rates. The FCC was hoping for a negotiated solution to the=20
leasing dispute -- instead of sending the matter back to the courts. The=20
results were mixed. AT&T called the talks a failure. But Qwest and MCI=20
signed a pact outlining a series of wholesale rates Qwest will charge MCI=20
to lease its network to offer local phone service to consumers and=20
businesses, overriding rates set by regulators. The deal calls for existing=
=20
prices through the end of this year, followed by a transition period=20
through January 2007. The two companies say there will be price increases=20
at scheduled points throughout the transition period. During the transition=
=20
period, MCI may develop more of its own means to deliver local phone=20
service by building its own telecom hubs.
[SOURCE: Wall Street Journal, AUTHOR: Almar Latour almar.latour( at )wsj.com]
http://online.wsj.com/article/0,,SB108604238029125198,00.html?mod=3Dtoda...
s_page_one
(requires subscription)
WP: http://www.washingtonpost.com/wp-dyn/articles/A5137-2004May31.html
LATimes:=20
http://www.latimes.com/business/printedition/la-fi-phones1jun01,1,779114...
ory?coll=3Dla-headlines-pe-business

BELLS LOOSEN THEIR GRIP
Last week's admission that Verizon is selling "naked DSL" to some customers=
=20
is the jumping off point for this discussion on the business strategies of=
=20
the four Baby Bell companies. Allowing customers to buy high-speed Internet=
=20
access without requiring them to also purchase local phone service is a big=
=20
move for the Bells who are trying to match the bundle of services offered=20
by cable companies. The Bells are servicing fewer and fewer local phone=20
lines and they are trying to find new models of profitability as that trend=
=20
is expected to consider: people are choosing cell phone service over=20
landline service for second telephone lines, 30% of consumers are expected=
=20
to make the jump to cell phone-only service in the next four years AND=20
there's this whole VoIP thing to worry about, too. What's a local monopoly=
=20
to do?
[SOURCE: C-Net|News.com, AUTHOR: Ben Charny]
http://news.com.com/Bells+loosen+their+grip/2100-1034_3-5222816.html?tag...
efd.top

MEDIA

XM ASKS SUBSCRIBERS TO HELP PETITION THE FCC, CONGRESS
Comments are due Friday on a National Association of Broadcasters petition=
=20
asking the FCC to clarify that satellite radio can be only national and not=
=20
offer local weather and traffic to subscribers. In addition, legislation=20
also has been introduced in the House to prohibit local broadcasting by=20
satellite. To ward off these efforts by the National Association of=20
Broadcasters, XM radio is asking subscribers to contact the FCC and their=20
Members of Congress in support of the company. "NAB=92s preference is that=
we=20
not have dedicated channels for different metro areas. What that amounts to=
=20
is regulating speech and content and that=92s a First Amendment issue and=
not for
NAB to decide," a XM spokesperson said.
[SOURCE: Communications Daily, AUTHOR: Jeanene Timberlake]
(Not available online)

POLITICAL PAYOFFS
Early results of the 2004 election have identified clear winners: TV=20
stations. Network affiliates in the 21 battleground states could see=20
double-digit increases in political revenue, compared with this point in=20
2000. Industry analysts predicted last fall that stations' take from this=20
year's election would jump sharply=9760% from 2000=97to as high as $1.6=20
billion. But pundits seem surprised that so much has been spent so quickly.=
=20
"The money is much greater than before and being spent much earlier," says=
=20
Tim McAuliff, CEO of Petry Media, which links TV-station groups with the=20
campaigns and other buyers of ad time. Cable is likely to pick up steam as=
=20
the campaigns become more desperate to reach that crucial 4% of undecided=20
voters who will determine the election's outcome. Broadcasters will=20
continue to reap a windfall as candidates sustain a full-court press. In=20
addition, the controversial 527 nonprofit organizations have promised to=20
spend hundreds of millions. They have barely made a dent in the money=20
pledged to them. Says Sanford Bernstein & Co. analyst Tom Wolzien, "The=20
cost per thousand to reach the three voters who decide this election is=20
astronomical."
[SOURCE: Broadcasting&Cable, AUTHOR: Bill McConnell]
http://www.broadcastingcable.com/article/CA421960?display=3DWashington
(requires subscription)
USAToday is reporting on George Soros' efforts to defeat George Bush. His=20
money will buy a lot of political advertising.
[SOURCE: USAToday, AUTHOR: Rick Hampson]
http://www.usatoday.com/usatonline/20040601/6248227s.htm
http://www.usatoday.com/usatonline/20040601/6248221s.htm

CONGRESS AND FCC TAKE AIM
Although indecent broadcast content has grabbed most of the headlines this=
=20
year -- at least after the Super Bowl -- violence on TV may be the next=20
election year issue. "It is not harmless entertainment," complains Sen Joe=
=20
Lieberman, a longtime critic of TV violence. To finally put a muzzle on it,=
=20
the Connecticut Democrat is pushing legislation that would require the=20
National Institutes of Health to study the impact of TV violence and other=
=20
types of media exposure on children's development. His purpose is clear:=20
Data showing any link between exposure to violent shows and aggressive=20
behavior in children will be fuel to drive anti-violence restrictions=20
through. Some legislators would like to see the return of a family-friendly=
=20
prime time viewing period that would lack violent or indecent content. The=
=20
FCC will begin an examination into TV-violence that will focus on whether=20
the government can limit violent programs without violating free-speech=20
rights. If those constitutional issues can be resolved, then the FCC must=20
decide how tough the limits should be. The biggest quandary over regulating=
=20
TV violence is actually defining what "excessive" violence is. Privately,=20
Washington lobbyists are playing down chances of any crackdown passing=20
Congress or the FCC soon. In public, however, they're scrambling to show=20
that the issue is taken seriously.
[SOURCE: Broadcasting&Cable, AUTHOR: Bill McConnell]
http://www.broadcastingcable.com/article/CA422019?display=3DSpecial+Report
(requires subscription)

HILL PUSHES NARRATED TV FOR BLIND
Rep Ed Markey (MA), the House Telecommunications Subcommittee=92s top=20
Democrat, along with John McCain (AZ) and Ernest Hollings (SC) -- the=20
chairman and ranking Democrat, respectively, of the Senate Commerce=20
Committee -- have introduced legislation giving the FCC power to reinstate=
=20
its rules requiring narration of some prime time and children=92s=
programming=20
on broadcast and cable TV. The rules were adopted in 2000, but broadcasters=
=20
sued and a court ruled that the FCC was authorized by Congress only to=20
study whether a narration mandate would benefit the blind, not to actually=
=20
impose one.
[SOURCE: Broadcasting&Cable, AUTHOR: Bill McConnell]
http://www.broadcastingcable.com/article/CA421799?display=3DBreaking+News
(requires subscription)

FCC BEGINS EEO AUDITS
On May 28, 2004, the Federal Communications Commission (FCC) began mailing=
=20
the first of its Equal Employment Opportunity (EEO) audit letters to=20
randomly selected broadcast stations and multi-channel video program=20
distributors (MVPDs). In accordance with the Commission's EEO rules, the=20
FCC will audit the EEO programs of randomly selected broadcast licensees=20
and MVPDs. Each year, approximately 5% of all licensees and MVPDs will be=
=20
selected. Sample copies of the audit letters can be viewed by accessing the=
=20
Media Bureau's EEO page on the FCC website at=20
http://www.fcc.gov/mb/policy/eeo. A list of the stations and MVPDs to=20
which this group of letters were sent is also available on the=20
website. Audit letters will be mailed to additional broadcast licensees=20
and MVPDs at a later date, although the language in the letters will not=20
necessarily remain the same.
[SOURCE: FCC]
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DA-04-1536A1.doc

CABLE GEARS UP FOR DIGITAL-READY TV SETS
On July 1, the FCC will begin to require that cable TV systems be able to=20
handle a new generation of digital cable-ready TVs and home theater units.=
=20
The new gear can tune in digital and high-definition TV signals without a=20
cable system's proprietary set-top box. Beyond cable-ready TVs, the change=
=20
will make possible a range of new product choices to meet consumers' needs.=
=20
For example, if the box your operator offers lacks a connection for your=20
digital-video recorder, you can buy a different box that does -- or buy a=20
new DVR with a card slot and its own tuner. CableCard's "convenience is a=20
powerful tool to sell digital cable" packages that add about $10 to the=20
monthly bill, says In-Stat/MDR analyst Gerry Kaufhold. It will help cable=20
compete with satellite providers: "Nobody's coming out with a=20
satellite-ready TV."
[SOURCE: USAToday, AUTHOR:David Lieberman]
http://www.usatoday.com/usatonline/20040601/6248466s.htm
More on the DTV transition will be discussed at a House hearing this week.=
=20
See=20
http://energycommerce.house.gov/108/Hearings/06022004hearing1289/hearing...

QUICKLY

PUBLIC VOICE WSIS SOURCEBOOK
EPIC has published The Public Voice WSIS Sourcebook, a resource to promote=
=20
a dialogue on the issues, the outcomes, and the process of the World Summit=
=20
on the Information Society (WSIS). This reference guide provides the=20
official United Nations documents, regional and issue-oriented=20
perspectives, as well as recommendations and proposals for future action.=20
There is also a useful list of resources and contacts for individuals and=20
organizations that wish to become more involved in the WSIS process. For=20
more information about this and other EPIC publications, see the EPIC=20
Bookstore. The Public Voice is a project started by EPIC to promote the=20
involvement of the public and non-profit community in policy decisions=20
concerning the Internet.
[SOURCE: Electronic Privacy Information Center]
http://www.epic.org/bookstore/pvsourcebook/

TRUCKERS WARM TO WIRELESS HOT SPOTS
Citizens' band radios, cell phones, GPS... and now Wi-Fi Internet access.=20
Truckers always appear to be on the cutting edge of wireless communication.=
=20
Find out how these mobile workers are tapping into the Internet at the URL=
=20
below.
[SOURCE: Washington Post, AUTHOR: Kimberly Edds]
http://www.washingtonpost.com/wp-dyn/articles/A4786-2004May31.html
(requires registration)
--------------------------------------------------------------

The FCC's Localism Task Force hearing in Rapid City, South Dakota is today.=
=20
For this and other upcoming media policy events, see=20
http://www.benton.org/calendar.htm

Communications-related Headlines is a free online news summary service=20
provided by the Benton Foundation (www.benton.org). Posted Monday through=20
Friday, this service provides updates on important industry developments,=20
policy issues, and other related news events. While the summaries are=20
factually accurate, their often informal tone does not always represent the=
=20
tone of the original articles. Headlines are compiled by Kevin Taglang=20
(headlines( at )benton.org) -- we welcome your comments.

TELEVISION
Comment Requested on A La Carte and Themed Tier Programming
Group Launches New Dereg Attack
Longley-Rice Stays on FCC Menu

TELECOM
Cingular to Sell Cellular Spectrum
SBC, Union Agree to 5-Year Pact
Static Rises as Telecom Bill Nears (California) PUC Vote

INTERNET
Firms Sue Google for Ad Links to Competitors

TELEVISION

COMMENT REQUESTED ON A LA CARTE AND THEMED TIER PROGRAMMING
The FCC is seeking public comment regarding the provision of a la carte and=
=20
"themed-tier" services on cable television and direct broadcast satellite=20
systems for a report on the ability of multichannel video programming=20
distributors ("MVPDs") to provide such services to customers on a voluntary=
=20
basis. The FCC is asking: 1) Do MVPDs currently have the option to purchase=
=20
channels from programmers on a stand-alone basis, such that they could, if=
=20
they chose, offer programming to consumers on an a la carte or themed-tier=
=20
basis? What are the limitations, if any, on their flexibility to do so?=20
What statutory or regulatory action would be needed to remove any such=20
limitations? 2) What would the impact be on retail rates to consumers if=20
programmers were required to offer their programming to MVPDs exclusively=20
on a stand-alone basis? (plus additional questions concerning rates) 3) How=
=20
have broadcast networks and affiliate groups used the retransmission=20
consent process to expand carriage of affiliated programming? How has this=
=20
affected rates for MVPD offerings for consumers? Do the rules governing=20
retransmission consent and must-carry limit consumers' ability to select=20
their own programming? If so, how? 4) What effect, if any, would the=20
voluntary offering of a la carte or themed-tier service have on the ability=
=20
of independent, niche, religious, and ethnic programming to continue to be=
=20
carried or launched? 5) Questions about how a la carte offering could=20
effect rural providers. 6) Questions concerning set-top boxes and 8) legal=
=20
and regulatory questions. Comments are due July 8 will reply comments due=20
July 23.
For further information contact Ben Golant, Media Bureau at (202) 418-7111.
[SOURCE: FCC]
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DA-04-1454A1.doc
B&C: http://www.broadcastingcable.com/article/CA420969?display=3DBreaking+Ne=
ws
(requires subscription)

GROUP LAUNCHES NEW DEREG ATTACK
With 300 member organizations, Citizens for Sensible Safeguards released a=
=20
report and launching a Web site Tuesday critical of the Bush=20
administration's systematic dismantling of regulatory protections,=20
including those on media ownership and drug advertising. In addition to the=
=20
general rollback of ownership regulations, the groups target what they say=
=20
is a "dramatic drop" in enforcement regulations on drug advertising. "From=
=20
December 2001 to September 2002," the report says "the Food and Drug=20
Administration (FDA) issued just 19 "notices of violation" or "warning"=20
letters (an average of just two per month). In the three previous years,=20
FDA sent 253 of these letters to manufacturers, or almost 85 per year." The=
=20
number of direct-to-consumer ads submitted to the FDA for review in 2002=20
increased by 75%, they say, but FDA enforcement actions dropped by almost=20
half. "The drug industry, which gave $5.7 million to 2000 Bush campaign=20
efforts, faces virtually no deterrent to misleading consumers," the report=
=20
says.
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
http://www.broadcastingcable.com/article/CA420683?display=3DBreaking+News
(requires subscription)

LONGLEY-RICE STAYS ON FCC MENU
The FCC uses a mathematical calculation called the =93Individual Location=20
Longley-Rice=94 model to determine a home is getting an acceptable signal=20
over the air from their local ABC, CBS, NBC or Fox affiliate. If the=20
equation figures that a local signal is too weak, a satellite operator may=
=20
sell the household distant network signals. But neither broadcasters or=20
satellite operators like the FCC's equation. Echostar complains that the=20
equation is based on incomplete data. Broadcasters complain that the model=
=20
assumes a household is receiving over-the-air TV via a rooftop antenna,=20
even though few of the people who get their TV over-the-air today use them.=
=20
But the FCC has decided to continue to use the equation anyway.
[SOURCE: Broadcasting&Cable, AUTHOR: Bill McConnell]
http://www.broadcastingcable.com/article/CA421010?display=3DBreaking+News
(requires subscription)
See the FCC order at:
http://hraunfoss.fcc.gov/edocs_public/attachmatch/FCC-04-76A1.doc

TELECOM

CINGULAR TO SELL CELLULAR SPECTRUM
Trying to avoid opposition to its planned acquisition of AT&T Wireless,=20
Cingular yesterday announced it will sell to T-Mobile USA $2.5 billion=20
worth of spectrum in 10 California markets, including San Diego, Sacramento=
=20
and San Francisco. The sale would end the two companies' agreement to=20
jointly operate mobile phone networks in California and New York. The=20
overlapping mobile phone networks that Cingular and AT&T have in large=20
parts of California have raised concerns among Justice Department officials=
=20
about the combined companies' market power in the state. The deal with=20
T-Mobile aims to ease those concerns and is contingent on Cingular closing=
=20
its deal with AT&T Wireless. Cingular faces similar concerns about the=20
purchase in Texas and Florida.
Also, the Wall Street Journal is reporting that Cingular is planning to=20
start testing a high-speed wireless Internet, "3G" network later this year,=
=20
though the carrier says it doesn't plan to launch a major commercial=20
offering of the service until 2006. AT&T Wireless is scheduled to offer 3G=
=20
services in four U.S. cities by year end, although at a different radio=20
frequency. If Cingular's pending acquisition of AT&T Wireless is approved=20
by regulators, it means Cingular could offer a service in those four=20
markets by the end of 2004.
[SOURCE: Washington Post, AUTHOR: Christopher Stern]
http://www.washingtonpost.com/wp-dyn/articles/A55682-2004May25.html
(requires registration)
LATimes:=20
http://www.latimes.com/business/printedition/la-fi-cingular26may26,1,975...
story?coll=3Dla-headlines-pe-business
SJMerc:=20
http://www.mercurynews.com/mld/mercurynews/business/technology/8762124.htm
NYT: http://www.nytimes.com/2004/05/26/business/26wire.html
CINGULAR TO TEST WIRELESS NETWORK
[SOURCE: Wall Street Journal, AUTHOR: Jesse Drucker jesse.drucker( at )wsj.com]
http://online.wsj.com/article/0,,SB108552568838821229,00.html?mod=3Dtoda...
s_marketplace
(requires subscription)

SBC, UNION AGREE TO 5-YEAR PACT
One-hundred thousand members of the Communications Workers of America=20
returned to work after a four-day strike and the union reached an agreement=
=20
with SBC for a new, 5-year contract. Key to the pact are provisions that=20
allow union workers in, say, SBC's conventional land-line business, which=20
lost 427,000 local access lines last quarter but gained 2.6 million=20
long-distance lines, to take jobs in growing areas like wireless Internet=20
and voice over Internet protocol. The agreement on job security is=20
important because it defines traditional telephone work to include all the=
=20
new communications technologies, said CWA spokeswoman Candice Johnson.=20
Union members will vote on the deal next month.
[SOURCE: Los Angeles Times, AUTHOR:James S. Granelli]
http://www.latimes.com/business/printedition/la-fi-sbc26may26,1,6084792....
y?coll=3Dla-headlines-pe-business
See CWA press release:
http://www.cwa-union.org/news/PressReleaseDisplay.asp?ID=3D428

STATIC RISES AS TELECOM BILL NEARS (CA) PUC VOTE
The California Public Utilities Commission began working on a telecom bill=
=20
of rights four years ago to protect customers from misleading offers,=20
overstated promises on coverage, billing overcharges and unilateral changes=
=20
in service contracts. Commissioner Carl Wood, who oversaw the process,=20
issued the initial draft and has amended it several times. Commissioners=20
Geoffrey Brown and Susan Kennedy introduced competing versions this month.=
=20
The PUC is expected to pass one of them during a vote on Thursday. Telecom=
=20
companies operating in the state say the bill of rights is unnecessary and=
=20
could mean higher rates for consumers. Many are lobbying the California=20
legislature to change underlying laws to protect their interests. They have=
=20
had some success: The Assembly on Monday passed a measure that critics say=
=20
would gut the PUC's bill of rights proposals =97 and take away existing=20
consumer protections as well. The measure, which amends some consumer=20
provisions in a 1986 public utilities law, is pending in the Senate. Much=20
of the industry's angst is "just crocodile tears," said Janee Briesemeister=
=20
of Consumers Union, publisher of Consumer Reports magazine. "Once=20
California does anything to impose some standards on the industry, other=20
states will follow =97 and with stronger provisions." [When California=20
sneezes....]
[SOURCE: Los Angeles Times, AUTHOR:James S. Granelli]
http://www.latimes.com/business/printedition/la-fi-puc26may26,1,7325391....
y?coll=3Dla-headlines-pe-business

INTERNET

FIRMS SUE GOOGLE FOR AD LINKS TO COMPETITORS
Google took in nearly $1 billion last year by selling ads to firms eager to=
=20
market their wares online to computer users. But a number of major=20
businesses in the United States and Europe are crying foul, going after=20
Google in court and alleging that the search-engine juggernaut is profiting=
=20
illegally by trading on their names. Corporations have filed lawsuits=20
recently to try to stop Google from selling ads linked to searches based on=
=20
product names and trademarks. The companies charge that the lucrative=20
practice tramples their legal rights and allows competitors to steal their=
=20
customers.
[SOURCE: Washington Post, AUTHOR: David Vise]
http://www.washingtonpost.com/wp-dyn/articles/A55717-2004May25.html
(requires registration)
--------------------------------------------------------------

FCC HEADS TO SOUTH DAKOTA
Early this week, South Dakota is the place to be for communications policy=
=20
making. Here's a quick look at FCC-related events in the Mount Rushmore=
State.
* Chairman Powell, Commissioner Adelstein and South Dakota Governor Michael=
=20
Round to Headline Presentation of WISP Technologies, May 25, 3:30-5:30 pm.
Several representatives of wireless Internet service providers (WISP) will=
=20
demonstrate how small, entrepreneurial WISPs are serving rural communities=
=20
and using wireless broadband services to bring opportunities for greater=20
economic development. There will also be discussions of how the challenges=
=20
in serving rural communities can be overcome.
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-247478A1.doc
* FCC to Hold Second Indian Telecommunications Initiatives Regional=20
Workshop and Roundtable in Rapid City, SD, May 26 and 27.
FCC officials and Tribal leaders will address telecommunications issues=20
facing Indian Country with the goal of providing clear, practical=20
information that Tribal decision-makers can use to prioritize their=20
economic goals and telecommunications development agendas.
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-247473A1.doc
* FCC Localism Task Force Announces Procedures to Facilitate Public=20
Participation At Its Rapid City, South Dakota Hearing on Broadcast Localism
The FCC is asking the people of South Dakota to help answer five questions:=
=20
1) How do your broadcasters use radio and television to respond to the=20
community's needs and interests? What are they doing well? 2) Are there=20
certain kinds of local programming that you believe should be available but=
=20
that are not being provided by local broadcasters? If so, what are they? 3)=
=20
Are broadcasters well informed about important issues and events in the=20
community? 4) Are there any segments of the local community that you=20
believe are not being adequately served? How could broadcasters meet the=20
needs of such groups? 5) What, if anything, should the FCC do to promote=20
more localism in broadcasting?
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-247489A1.doc
[SOURCE: FCC]
(http://www.fcc.gov)
For additional upcoming media policy events, see=20
http://www.benton.org/calendar.htm

TELEVISION
Advertising: Fall TV Season's Offerings Are Escapist Brain Candy
Independent PTV Stations Say PBS programming Causes Centralization
China Takes Aim at Racy, Violent TV Shows
Time May Have Come for Ordering Channels a la Carte
Disney=92s In Indecency Mix
Border Dispute
Satellite Act Down to Wire
Contentious Foe of Finance Reform

TELECOM
Dial 'M' for Morass
SBC, Union Report Progress In New Contract Talks
Nextel Lobbies For Bigger Share Of Cellular Space
The Administration's Ear to Telecom
Universal Community Access from Thin Air?=09
Rural America Expects Fewer Bumps in Switching Cellphone Numbers

JOURNALISM
Bottom-Line Pressures Now Hurting Coverage, Say Journalists
Democracy At Risk

TELEVISION

ADVERTISING: FALL TV SEASON'S OFFERINGS ARE ESCAPIST BRAIN CANDY
Many advertisers prefer to buy commercial time in shows that accentuate the=
=20
positive, to help put viewers in an upbeat, consuming mood. So to give=20
their customers what they want, the six broadcast TV networks unveiled=20
schedules for next year that include a lot of brain candy. "Reality" shows=
=20
have become the new sitcoms. "Maybe that's because to younger viewers who=20
grew up watching 'The Real World' on MTV, who have Webcams and camera=20
phones, the idea of watching other people instead of sitcoms seems very=20
appealing," says one advertiser. "In 1997, NBC alone had 18 sitcoms," said=
=20
Brad Adgate, senior vice president and research director at Horizon Media=20
in New York. "This year, NBC, CBS and ABC combined have 18." There's more=20
about how advertisers see the new TV lineup -- including expected hits and=
=20
flops -- at the URL below.
[SOURCE: New York Times, AUTHOR: Stuart Elliott]
http://www.nytimes.com/2004/05/24/business/media/24adcol.html
(requires registration)

INDEPENDENT PTV STATIONS SAY PBS PROGRAMMING CAUSES CENTRALIZATION
Just 8% of noncommercial stations are independent. =93There is media=20
centralization going in the commercial and noncommercial world and the=20
thing that=92s getting lost -- and most people are worried about it being=
=20
lost -- is local production and local content,=94 said Frederick Thomas of=
=20
MHZ Networks, which operates 2 independent public TV stations in the=20
Washington area -- WNVC and WNCT. Non-PBS stations insist they=92re the last=
=20
bulwarks against centralization and consolidation taking hold across the=20
media world. =93The relationship between local stations and PBS national is=
=20
going to continue to change and change in ways that I don't think are=20
necessarily to the benefit of the local stations," says Thomas. =93PBS=20
requires member stations to carry a minimum amount of programming and they=
=20
require a huge fee for it. So it=92s a closed system in a lot of ways and=20
it=92s built on the old centralized, affiliate type of relationship.=94 With=
=20
commercial stations only providing local news, who else but public TV will=
=20
do local programming? Asked if he agreed centralization was creeping into=20
the noncommercial world as well, Association of Public Television Stations=
=20
President John Lawson said he agreed that =93it=92s a real struggle to=
provide=20
quality local programming. It is because of the economics of it.=94 But with=
=20
the digital conversion, all public TV stations =97 PBS and independent --=20
were looking for ways to expand local programming. Mr Lawson said: =93They=
=20
are buying cameras and upgrading studios and they are upgrading the talent=
=20
of their producers, and I think we just may be on the brink of a resurgence=
=20
of local programming.=94
[SOURCE: Communications Daily, AUTHOR: Dinesh Kumar]
(Not available online)

CHINA TAKES AIM AT RACY, VIOLENT TV SHOWS
While Beijing has kept a tight grip over news content, it has in recent=20
years allowed more leeway to broadcasters, particularly in nonsensitive=20
areas like entertainment and sports programming. Broadcasters have come to=
=20
rely on racy and sometimes violent content to attract viewers and boost=20
bottom lines. But China's propaganda czars are turning their policing=20
efforts to pop culture and slapped new restrictions on television show=20
hosts who sport orange-tinted hair, wear "too little or too weird clothes,"=
=20
or speak in trendy local dialects or Western slang. The restrictions are=20
part of a rash of new regulations issued by the State Administration for=20
Radio, Film and Television aimed at toning down the sex, violence and racy=
=20
content that are the hallmark of broadcast media everywhere -- and,=20
increasingly, in China.
[SOURCE: Wall Street Journal, AUTHOR: Kathy Chen kathy.chen( at )wsj.com &=20
Leslie Chang leslie.chang( at )wsj.com]
http://online.wsj.com/article/0,,SB108535107991019064,00.html?mod=3Dtoda...
s_marketplace
(requires subscription)
The Washington Post has a story on how China tried to control content on=20
the Web as well. See "Webmaster Finds Gaps in China's Net"
http://www.washingtonpost.com/wp-dyn/articles/A50496-2004May23.html

TIME MAY HAVE COME FOR ORDERING CHANNELS A LA CARTE
USAToday recaps the a la carte debate. In 2003, the monthly bill for=20
"expanded basic," the option selected by 95% of customers, averaged a=20
record $36.59. The package includes broadcast channels plus a fixed basket=
=20
of up to about 60 cable channels. But research shows that the average=20
subscriber regularly watches, at most, about 14 channels. A recent poll=20
commissioned by the conservative Concerned Women for America found 66% of=20
consumers would prefer to choose their channels -- and 80% don't want to=20
pay for channels they don't watch.
[SOURCE: USAToday, AUTHOR:Michael McCarthy]
http://www.usatoday.com/usatonline/20040524/6226831s.htm

DISNEY'S IN THE INDECENCY MIX
As a major media conglomerate, Disney has a foot in both the cable and=20
broadcasting camps. It owns the ABC Television Network and 10 TV stations,=
=20
as well as cable networks ESPN, Disney Channel and ABC Family, as well as a=
=20
stake in Lifetime Television. As indecency legislation makes it way through=
=20
Congress, the company is supporting cable indecency legislation while=20
fighting proposals that would require cable operators to sell cable=20
networks a la carte. Disney is apparently supporting indecency legislation=
=20
in an effort to drain momentum from a la carte, which some consider a=20
potentially devastating blow to ESPN=92s business model.
[SOURCE: Multichannel News, AUTHOR: Ted Hearn]
http://www.multichannel.com/article/CA420345?display=3DTop+Stories
(requires subscription)

BORDER DISPUTE
As many as 50 million Americans may be suffering through radio broadcasts=20
with interference because Mexico has allowed three AM stations in Tijuana,=
=20
Tecate, and Ensenada switch channels and ramp up their power by as much as=
=20
80 times their previous levels. The move violates an 18 year-old treaty=20
between the US and Mexico and could mean there will be problems untangling=
=20
interference issues as TV stations in both countries switch to all-digital=
=20
operation. DTV stations in California, Arizona, New Mexico, and Texas could=
=20
face years-long bureaucratic disputes over interference, warns David=20
Donovan, president of the Association for Maximum Service Television, the=20
U.S. DTV trade group.
[SOURCE: Broadcasting&Cable, AUTHOR: Bill McConnell]
http://www.broadcastingcable.com/article/CA420260?display=3DWashington
(requires subscription)

SATELLITE ACT DOWN TO WIRE
Time is growing short for the Satellite Home Viewer Improvement Act (SHVIA)=
=20
which needs to be reauthorized by Congress or millions of rural satellite=20
subscribers with access to out-of-town feeds of ABC, CBS, NBC and Fox will=
=20
lose network programming after December 31, 2004. With the summer's=20
political conventions coming and time off needed to campaign, there's not=20
many days left for this Congress. SHVIA is one of the few "must get done"=20
bills of the year and to get passed and signed, the legislation will=20
probably have to avoid controversy. Because of that Senate Judiciary=20
Committee Chairman Orrin Hatch (R-UT) has proposed a straight five-year=20
reauthorization. He would like to fix some problems, but does not have the=
=20
jurisdiction to do it all. One potential "fix" Sen Hatch and others would=20
support is a requirement that all broadcast stations in a local market be=20
delivered on one dish at the consumers home. EchoStar currently relegates=20
some broadcast channels to a second dish that is free for requesting=20
consumers, but many fail to request it. A compromise may be in the making,=
=20
however. Andrew Halataei, legislative director for House Judiciary=20
Committee member Rep. Randy Forbes (R-VA), floated the idea that a two-dish=
=20
solution could be acceptable if EchoStar automatically installed a second=20
dish when consumers signed up for the local-signal package. =93I think in=
the=20
end there=92s probably going to be something in the bill that=92s going to=
=20
require EchoStar to make sure they have everything on one dish or always=20
install two dishes when they go to install it the first time,=94 Mr.=
Halataei=20
said. Satellite operators also want the right to deliver distant digital TV=
=20
signals into local areas where local broadcasters are not. The National=20
Association of Broadcasters opposes this provision.
[SOURCE: Multichannel News, AUTHOR: Ted Hearn]
http://www.multichannel.com/article/CA420235?display=3DPolicy
(requires subscription)

CONTENTIOUS FOE OF FINANCE REFORM
Bradley Smith, the Chairman of the Federal Election Commission, may be the=
=20
biggest obstacle to true finance reform. The FEC recently delayed any=20
decision on the flow of "soft money" to "527" organizations until August,=20
ensuring that these organizations will play a major role in this year's=20
election. The chairman of the Republican Party, Ed Gillespie, called=20
Chairman Smith's latest actions "irresponsible." Sen. John McCain (R-AZ),=20
the best-known proponent of campaign-finance reform, labeled him "bullying=
=20
and cowardly." For his part, Chairman Smith believes that if there's any=20
loophole in the campaign finance system, it is there because Congress put=20
it there. "The idea that donors' giving money to candidates is corrupting"=
=20
is misguided, he says. He argues that providing money to support a campaign=
=20
is an essential element of democracy in the TV age and isn't bribery, as=20
his critics often contend.
[SOURCE: Broadcasting&Cable, AUTHOR: Bill McConnell]
http://www.broadcastingcable.com/article/CA420245?display=3DTop+of+the+Week
(requires subscription)

TELECOM

DIAL 'M' FOR MORASS
The WSJ calls on Solicitor General Ted Olson to announce that the=20
Administration won't seek a Supreme Court appeal of the March court ruling=
=20
invalidating the FCC's phone competition rules. The uncertainty of this=20
looming court action and the meddling of state regulators, the editorial=20
states, is what is holding back the telecom sector. Like any other market,=
=20
the editorial concludes, telecom responds to incentives. Nearly a decade of=
=20
micro-management and endless litigation have depressed capital spending and=
=20
left the U.S. trailing Asia and Europe in broadband deployment. Removing=20
those barriers is an essential first step in reversing these trends.
[SOURCE: Wall Street Journal, AUTHOR: WSJ Editorial Staff]
http://online.wsj.com/article/0,,SB108535247611819074,00.html?mod=3Dtoda...
s_opinion
(requires subscription)

SBC, UNION REPORT PROGRESS IN NEW CONTRACT TALKS
The Communications Workers of America and SBC reported "considerable=20
progress" in their negotiations over the weekend. A strike of 100,000 CWA=20
members against SBC, in its third day, is scheduled to end Tuesday. The=20
union is pushing SBC to agree that CWA workers in fields with declining=20
manpower be given priority for positions in their hometowns. The company=20
says it will give each surplus worker a guaranteed job offer somewhere in=20
the same state, which the CWA finds inadequate.
[SOURCE: Wall Street Journal, AUTHOR: Associated Press]
http://online.wsj.com/article/0,,SB108523790132518630,00.html?mod=3Dtoda...
s_marketplace
(requires subscription)

NEXTEL LOBBIES FOR BIGGER SHARE OF CELLULAR SPACE
The debate over moving cellphone company Nextel to a different spectrum=20
band is front page news in Washington. It "is becoming one of Washington's=
=20
most intense lobbying clashes, with the company's future and the shape of=20
the cellular phone industry in the balance." Nextel is the smallest=20
national wireless operator and the only one that does not have a large,=20
deep-pocketed phone company for a parent. Nextel has hired lobbyists to=20
help win approval of its plan to move to spectrum that would allow it to=20
compete better with larger carriers and fix interference problems with=20
public safety officials. But rivals say Nextel is underpaying for the new=20
spectrum it wants -- by about $1 billion.
[SOURCE: Washington Post, AUTHOR: Jeffrey Birnbaum & Yuki Noguchi]
http://www.washingtonpost.com/wp-dyn/articles/A50329-2004May23.html
(requires registration)

THE ADMINISTRATION'S EAR TO TELECOM
A interview with Michael D. Gallagher, head of the Commerce Department's=20
National Telecommunications and Information Administration and the Bush=20
administration's principal advisor on telecommunications policy. He is a=20
graduate of UC Berkeley and UCLA's law school, entered government from the=
=20
wireless industry, where he worked for AirTouch before it was acquired by=20
Vodafone and eventually merged into Verizon Wireless. He sees wireless=20
technology as a way to get around the chokehold the Bells have on local=20
access lines, called loops. The interview covers phone competition,=20
negotiations to lease phone lines and affordable high-speed Internet access.
[SOURCE: Los Angeles Times, AUTHOR: James S. Granelli]
http://www.latimes.com/business/printedition/la-fi-gallagher24may24,1,59...
6.story?coll=3Dla-headlines-pe-business

UNIVERSAL COMMUNITY ACCESS FROM THIN AIR?
Media analyst Tom Wolzien estimates that the spectrum used for broadcasting=
=20
in the US is worth $367 billion. Broadcasters get to use that spectrum free=
=20
of charge, agree to public interest obligations aimed at delivering=20
important programming to audiences. But new players would like access to=20
spectrum to deliver public benefits. In congested unlicensed bands of=20
spectrum, more than 2,500 Wireless Internet Service Providers (WISPS) and=20
nonprofit Community Access Networks are using modified Wi-Fi equipment to=20
provide high-speed Internet access for entire communities. This activity is=
=20
great news, the New America Foundation's Calabrese and Barranca write, for=
=20
communities, but the success of unlicensed spectrum to provide last-mile=20
connectivity reinforces the reality that the vast majority of spectrum is=20
off-limits to citizens for direct access. The truth is, they add, that much=
=20
of the spectrum represents an enormous untapped public resource that could=
=20
be used by communities to solve broadband Internet access problems quickly,=
=20
efficiently and for themselves.
[SOURCE: Community Media Review, AUTHORS: Michael Calabrese & Matt Barranca]
http://www.alliancecm.org/

RURAL AMERICA EXPECTS FEWER BUMPS IN SWITCHING CELLPHONE NUMBERS
Starting today, cellphone users in rural America will be able to switch=20
carriers and take their numbers with them.
[SOURCE: New York Times, AUTHOR: Ken Belson]
http://www.nytimes.com/2004/05/24/technology/24phone.html
(requires registration)
See statement from FCC Chairman Michael Powell
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-247463A1.doc

JOURNALISM

BOTTOM-LINE PRESSURES NOW HURTING COVERAGE, SAY JOURNALISTS
Journalists are unhappy with the way things are going in their profession=20
these days. Many give poor grades to the coverage offered by the types of=20
media that serve most Americans: daily newspapers, local TV, network TV=20
news and cable news outlets. In fact, despite recent scandals at the New=20
York Times and USA Today, only national newspapers =AD and the websites of=
=20
national news organizations =AD receive good performance grades from the=20
journalistic ranks. Roughly half of journalists at national media outlets=20
(51%), and about as many from local media (46%), believe that journalism is=
=20
going in the wrong direction, as significant majorities of journalists have=
=20
come to believe that increased bottom line pressure is "seriously hurting"=
=20
the quality of news coverage. This is the view of 66% of national news=20
people and 57% of the local journalists questioned in this survey.
[SOURCE: Pew Research Center for the People and the Press]
http://people-press.org/reports/display.php3?ReportID=3D214
See coverage of the survey in the Washington Post:
http://www.washingtonpost.com/wp-dyn/articles/A50403-2004May23.html

DEMOCRACY AT RISK
The authors ask if concentrated media ownership is good for a free,=20
democratic society. Over the last two decades there's been a massive=20
disinvestment in news and journalism and a loss of independent journalistic=
=20
voices. Journalistic outlets have been transformed into cogs in the immense=
=20
portfolios monopolistic public companies and mega-chains. Behind closed=20
doors at the FCC and without much press coverage, "the major media company=
=20
CEOs and their lobbyists have turned the FCC into their handmaiden for=20
extending their control in pursuit of greater stock prices and short-term=20
profit." The battle over new media ownership rules, the authors write, is a=
=20
battle for democracy's survival versus rapacious capitalism. The grassroots=
=20
effort to block the FCC rules is having some effect in Congress. "Every=20
American needs to be a warrior for democracy. Every American needs to speak=
=20
up loud and often on this issue."
[SOURCE: Community Media Review, AUTHORS: Wade Henderson (Leadership=20
Conference on Civil Rights) and Frank Blethen (The Seattle Times)]
http://www.alliancecm.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.
--------------------------------------------------------------