1. Monthly archive
  2. March 2004

March 2004

Benton's Communications-related Headlines for 3/31/04

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

TELECOM
FCC to Urge Telecoms to Settle On Local Network-Access Issue

COMPLAINTS, COMPLAINTS, COMPLAINTS
President Bush=92s Broadband Goal Contradicts Administration Policies
Phone Fees Ring Untrue, Group Says
Planned Nielsen Changes Criticized

QUICK HITS
Media Ownership Reform Act of 2004
Nets Team Up on V-Chip Primer
Music Labels Use File-Sharing Data to Boost Sales
Liberal Voices (Some Sharp) Get New Home on Radio Dial

TELECOM

FCC TO URGE TELECOMS TO SETTLE ON LOCAL NETWORK-ACCESS ISSUE
FCC Commissioner Kevin Martin is expected, somewhat unexpectedly, to join=
=20
with FCC Chairman Michael Powell and Commissioner Kathleen Abernathy in a=20
letter urging the companies to negotiate rather than litigate. By joining=20
together, the Republican majority on the Commission is likely to inspire=20
the phone companies to at least explore serious negotiations on sharing=20
access to their local phone networks. BellSouth, Qwest and SBC have made=20
overtures toward a settlement, but competitors MCI and AT&T have dismissed=
=20
these offers to negotiate, saying it would end up costing consumers more.
[SOURCE: Wall Street Journal, AUTHOR: Almar Latour almar.latour( at )wsj.com and=
=20
Anne Marie Squeo annemarie.squeo( at )wsj.com]
http://online.wsj.com/article/0,,SB108070395589969975,00.html?mod=3Dtoda...
s_personal_journal
(requires subscription)
LATimes: FCC to Seek Delay in Phone Case, Sources Say
http://www.latimes.com/business/printedition/la-fi-fcc31mar31,1,3074710....
y?coll=3Dla-headlines-pe-business
Also:
Former and current officials at the FCC are predicting that the biggest=20
regulatory issue concerning Internet telephone service (VoIP) is=20
intercarrier access charges. A decision in this area is not expected until=
=20
after the November election and could mean the difference between charges=20
as low as about 0.1 cent/min. and as high as about 6 cents/min. [SOURCE:=20
Communications Daily]

COMPLAINTS, COMPLAINTS, COMPLAINTS

PRESIDENT BUSH'S BROADBAND GOAL CONTRADICTS ADMINISTRATION POLICIES
President Bush=92s much-publicized goal of providing affordable high-speed=
=20
Internet access to all Americans by ensuring "plenty of choice" in=20
broadband service contradicts Administration policies that actually have=20
strengthened cable and phone monopolies which have led to higher prices and=
=20
less choice in broadband, Consumers Union and Consumer Federation of=20
America said today in a letter to the president. "Given that 80 percent of=
=20
Americans today do not have broadband access, we applaud your declaration=20
of a progressive goal for the digital information age, but it will require=
=20
a 180-degree change from recent policies," said the letter, signed by Gene=
=20
Kimmelman, public policy director for Consumers Union, and Mark Cooper,=20
research director for Consumer Federation of America. Kimmelman and Cooper=
=20
noted that since the President took office, the cost of buying the services=
=20
that connect cable customers to high-speed Internet has skyrocketed =AD a=20
package of cable modem and expanded basic cable programming has shot up=20
three times the rate of inflation. Also, a consumer who wants high-speed=20
service and their own Internet Service Provider must pay their cable=20
company $55 to $75 a month for that option. "This trend is absolutely=20
contrary to the President=92s goal of offering consumers =91more choices=92=
in=20
high-speed Internet service that will ensure prices go down," Mr. Kimmelman=
=20
said. "We believe the Administration has moved away from giving consumers=20
more competitive choices, and instead supported or adopted policies that=20
have strengthened the hand of cable and phone monopolists, who together own=
=20
and control virtually all broadband connections." The letter from Consumers=
=20
Union and Consumer Federation of America also asked the Administration to=20
support "a la carte" choice for video and Internet content over cable=20
lines; adopt a "non-discrimination" policy for broadband services to foster=
=20
an entrepreneurial environment; appeal the anti-consumer local phone=20
service decision by the D.C. District Court in USTA v. FCC; and pursue a=20
policy to ensure all Internet services are affordable and that Americans=20
are computer literate.
[SOURCE: Consumers Union Press Release]
http://www.consumersunion.org/pub/core_telecom_and_utilities/000948.html
See letter at=20
http://www.consumersunion.org/pub/0330%20bush%20broadband%20response%202...

PHONE FEES RING UNTRUE, GROUP SAYS
In a petition filed yesterday at the FCC, the National Association of State=
=20
Utility Consumer Advocates argued that phone companies should be banned=20
from imposing an array of surcharges that are labeled so as to suggest the=
=20
government gets the fees or requires their collection. The "regulatory=20
assessment fees" and other similarly named surcharges, which reap billions=
=20
of dollars annually, are legally permitted as a way for companies to recoup=
=20
costs for complying with federal mandates. But NASUCA argues that such=20
expenses reflect a regular cost of doing business, just like network=20
maintenance. As such, the charges to cover those costs should already be=20
reflected in the per-minute calling rate or overall monthly fee. Phone=20
companies disagree.
[SOURCE: Los Angeles Times, AUTHOR: Associated Press]
http://www.latimes.com/business/printedition/la-fi-phones31mar31,1,79600...
ory?coll=3Dla-headlines-pe-business

PLANNED NIELSEN CHANGES CRITICIZED
Nielsen is bringing people meters to New York, Chicago and Los Angeles and=
=20
many --including Members of Congress and the NAACP -- are fearful it will=20
lead to undercounting of black and Hispanic television viewers. In tests of=
=20
people meters the ratings of the top shows among African Americans and=20
Hispanic networks dropped significantly. Sen Hillary Clinton would like=20
Nielsen to investigate that before using the people meters are on a large=20
scale. In a letter to Nielsen, Kweisi Mfume, president of the NAACP,=20
expressed similar concerns, saying Nielsen's plans could imperil the=20
"future of programming aimed specifically at African-American and Latino=20
audiences."
[SOURCE: New York Times, AUTHOR: Raymond Hernandez and Stuart Elliot]
http://www.nytimes.com/2004/03/31/business/media/31adco.html
(requires registration)

QUICK HITS

* Rep Maurice Hinchey (D-NY) introduced yesterday the Media Ownership=20
Reform Act of 2004 that would 1) void the FCC's new media ownership rules;=
=20
2) restore the Fairness Doctrine; 3) limit a TV-station group to no more=20
than 35% household reach nationally; and 4) bar any single entity from=20
owning more than 5% of AM and FM broadcast-radio stations nationally, along=
=20
with local-market limits. The bill has no co-sponsors and about a=20
snowball's chance in [deleted due to new indecency rules].
B&C: http://www.broadcastingcable.com/article/CA407111?display=3DBreaking+Ne=
ws
Multichannel:=20
http://www.multichannel.com/article/CA407110?display=3DBreaking+News
(requires subscription)

NETS TEAM UP ON V-CHIP PRIMER
The "Big Four" broadcast networks will team up with the Ad Council on an=20
effort to make TV viewers more aware and better able to use the V-chip. A=20
PSA campaign will direct viewers to TV networks' web sites for information=
=20
on how to program a V-Chip, plus some of the benefits of the system and an=
=20
explanation of the TV ratings system. Ad Council research has found that=20
80% of the American public is unaware that they have V-chip technology and=
=20
only 10% use it despite the fact that a majority are concerned about TV=20
content.
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
http://www.broadcastingcable.com/article/CA406980?display=3DBreaking+News
(requires subscription)

MUSIC LABELS USE FILE-SHARING DATA TO BOOST SALES
While the music industry publicly flays file-swapping services for aiding=20
piracy, those same services provide an excellent view of what's really=20
popular with fans. The companies use research firms to track which songs=20
are traded online to help them decide which singles to release and to=20
persuade radio stations and MTV to give new songs airplay.
[SOURCE: San Jose Mercury News, AUTHOR: Dawn C. Chmielewski]
(http://www.mercurycenter.com/)

LIBERAL VOICES (SOME SHARP) GET NEW HOME ON RADIO DIAL
Air America debuts in five markets today. Although the liberal radio=20
network hoped to own five stations by now, it has yet to purchase any. It=20
has limited reach: find the programming on WLIB-AM 1190 New York, WNTD-AM=20
950 Chicago, KBLA-AM Los Angeles, KCAA-AM Riverside/San Bernardino, KPOJ-AM=
=20
620 Portland (OR) and XM Satellite radio channel 167.
[SOURCE: New York Times, AUTHOR: Jacques Steinberg]
http://www.nytimes.com/2004/03/31/arts/31AIR.html
(requires registration)
--------------------------------------------------------------

Benton's Communications-related Headlines for 3/30/04

BROADCASTING
Update: FCC Digital TV Transition Plan
NPR Stations Had Pushed for Change

MERGERS
The Magic Kingdom as Content

QUICK HITS
Pager Firms Will Merge
Update: Wireless Portability Complaints
Bill Gates: Hardware to Be Nearly Free in 10 Years
Music Sharing Doesn't Kill CD Sales, Study Says
Network Neutrality: The Future of the Internet in the Broadband Age

Communications-related Headlines is a free online news summary service
provided by the Benton Foundation (www.benton.org). Posted Monday through
Friday, this service provides updates on important industry developments,
policy issues, and other related news events. Headlines are compiled by
Kevin Taglang (ktaglang( at )etpost.net) -- we welcome your comments.

BROADCASTING

UPDATE: FCC DIGITAL TV TRANSITION PLAN
As we've reported earlier, the FCC is considering counting broadcast
digital channels that have been converted by cable systems to analog
signals toward the DTV penetration test, allowing the FCC to reclaim old
analog channels years earlier than expected. Broadcasters have resisted the
proposal so far, but FCC Chairman says there will be benefits to TV station
owners. Chairman Powell said that broadcasters would have "options" for
ensuring that high definition (HD) and other digital services get wide
consumer distribution and they will benefit by having to supply electricity
for just one channel sooner and, in general, knowing there's a date certain
for turning off analog signals. He speculated that the complaints may be
coming from a few station owners "who enjoy sitting on two sets of
spectrum." Meanwhile, House Telecom Subcommittee Chairman Fred Upton (R-MI)
has decided to reserve judgement on the FCC plan until the General
Accounting Office releases a report, expected in June, on Berlin's switch
to digital broadcasting.
[SOURCE: Broadcasting&Cable, AUTHOR: Bill McConnell]
http://www.broadcastingcable.com/article/CA406773?display=Breaking+News
http://www.broadcastingcable.com/article/CA406589?display=Breaking+News
(requires subscription)
See Also
CABLE HDTV NOW AVAILABLE IN 99 OF TOP 100 U.S. MARKETS
Of the 108 million U.S. TV households, 84 million are passed by a cable
system that offers a package of high-definition programming, according to
the National Cable & Telecommunications Association. At least one cable
system in 99 of the top 100 Designated Market Areas (DMAs) is offering a
package of HD programming to consumers and 56 markets beyond the top-100
also are being served by a cable system offering HDTV, bringing the total
number of DMAs in which at least one cable system is offering HDTV to 155
of the 210 DMAs nationwide.
[SOURCE: NCTA Press Release]
http://www.ncta.com/press/press.cfm?PRid=465&showArticles=ok
Multichannel: HDTV Hits 99 of Top 100 Markets
http://www.multichannel.com/article/CA406597?display=Breaking+News
(requires subscription)

NPR STATIONS HAD PUSHED FOR CHANGE
I shouted out "Who killed Bob Edwards?" When after all it was you and me.
National Public Radio has received 17,000 complaints about the move to end
Mr. Edwards tenure as host of Morning Edition. The move is part of a bigger
effort, urged by local stations, to remain competitive in an increasingly
demanding and crowded news marketplace. Some critics of the move argue that
public radio should be immune to the ratings-driven pressures that often
prompt such personnel shifts in commercial broadcasting. Station managers
complained that Mr. Edwards, of late, seemed less engaged on the air, and
they belive Morning Edition's format does not allow the news show to
respond to breaking news.
[SOURCE: New York Times, AUTHOR: Lynette Clemetson]
http://www.nytimes.com/2004/03/30/arts/30PUBL.html
(requires registration)

MERGERS

THE MAGIC KINGDOM AS CONTENT
Could even Comcast know that its proposed merger with Disney is bad for
media? Tapscott writes, "The danger is that if the cable and satellite
companies start producing more and more content, the media industry will
balkanize into warring distribution/content camps. This wouldn't be good
for anyone, especially consumers, who want carriers to compete on quality
of service and price, not by offering different channels. If a consumer
wants access to all the channels that exist, he should be able to get this
without being forced to sign up with every carrier in the market." Vertical
integration is an often foolish way to achieve convergence and could be
perhaps more so when considering television. The rule of thumb is that
content wants all the distribution it can get. And distribution wants all
the content it can get.
[SOURCE: Wall Street Journal, AUTHOR: Don Tapscott]
http://online.wsj.com/article/0,,SB108060480726768469,00.html?mod=todays...
(requires subscription)

QUICK HITS

PAGER FIRMS WILL MERGE
More than 75 percent of pagers' user base has evaporated since 1998. The
nation's two largest pager firms, Metrocall and Arch Wireless, say they
must merge in order to survive. "I compare this to two drowning people
clinging to each other," said Roger Entner, a wireless analyst with the
Yankee Group. The companies' combined resources won't help them survive in
the long run, he said. The deal must pass antitrust muster and obtain other
regulatory approvals.
[SOURCE: Washington Post, AUTHOR: Yuki Noguchi]
http://www.washingtonpost.com/wp-dyn/articles/A34512-2004Mar29.html
(requires registration)

UPDATE: WIRELESS PORTABILITY COMPLAINTS
Since wireless phone number porting began on November 24, 2003, the FCC has
received 5852 informal complaints about wireless local number portability
as of March 25, 2004 Most of the complaints concern alleged delays in
porting numbers from one wireless carrier to another. A much smaller
number of complaints, just under ten percent of the total, involve alleged
delays in porting numbers from wireline carriers to wireless carriers. The
carriers most often mentioned in the complaints are: AT&T Wireless
(2923); Sprint PCS (1585); Verizon Wireless (990); T-Mobile
(914); Cingular Wireless (900); and Nextel (452). Many of the complaints
concern more than one carrier so the total number of complaints received is
smaller than the number of times a carrier is mentioned in a complaint.
This is the fourth monthly report on LNP complaints and reflects the
continuing downward trend in these complaints. The four reports indicate
monthly totals, chronologically, of 2,400, 4,734, 5,852 and now 6,637.
[SOURCE: FCC]
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-245392A1.pdf

BILL GATES: HARDWARE TO BE NEARLY FREE IN TEN YEARS
Microsoft Chairman Bill Gates told an audience at the Gartner Symposium
ITxpo he believes that many of the technological "holy grails" computing
has been working on for three decades will be solved in the next ten years.
He predicts that speech technology will be built into every device and that
there will be a device "like a tablet that you just carry around" and can
recognize handwriting. "Ten years out, in terms of actual hardware costs
you can almost think of hardware as being free -- I'm not saying it will be
absolutely free -- but in terms of the power of the servers, the power of
the network will not be a limiting factor," Gates said, referring to
networked computers and advances in the speed of the Internet.
[SOURCE: Reuters, AUTHOR: Reed Stevenson]
http://www.reuters.com/newsArticle.jhtml;jsessionid=XROJMIF5WYICOCRBAE0C...

MUSIC SHARING DOESN'T KILL CD SALES, STUDY SAYS
"We find that file-sharing has only had a limited effect on record sales,"
wrote Harvard Business School Associate Professor Felix Oberholzer and
University of North Carolina, Chapel Hill Associate Professor Koleman
Strumpf. "While downloads occur on a vast scale, most users are likely
individuals who would not have bought the album even in the absence of
file-sharing." The study disputes claims from record executives that online
music trading has led to a decline in CD sales.
[SOURCE: C-Net|News.com, AUTHOR: John Borland]
http://news.com.com/2100-1027-5181562.html?tag=cd_top/)
See the report:
The Effect of File Sharing on Record Sales
http://www.unc.edu/~cigar/papers/FileSharing_March2004.pdf

Yesterday we reported on "Network Neutrality: The Future of the Internet in
the Broadband Age," a forum co-sponsored by the Consumer Federation of
America and the Stanford Law Center for Internet and Society. For anyone
interested in hearing Vinton Cerf, Stanford Law School's Lawrence Lessig &
FCC Commissioner Michael Copps speak, see the Science/Technology section of
C-Span's Video Library.
http://www.c-span.org
--------------------------------------------------------------

Benton's Communications-related Headlines for 3/29/04

BROADBAND/INTERNET
Bush Sets Internet Access Goal
"Four Freedoms" Enough?
Four Technologies Move Toward Starting Gate
Click The Vote
E-Commerce Report: Broad Gains in Online Shopping

CONTENT
Update: Indecency and Media Ownership Link
A La Carte's Pushed Up Hill=85
Viacom Plans a Gay Channel, But the Reception Isn't Clear

TELEVISION
Aides: DTV Scheme Scary to Congress
Leisure Pursuits of Today's Young Man

TELECOM
Will Congress Have to Supply the Answer?

QUICK HITS
Comcast Hires IDI
'Dirty Driving' Laws Proposed

Communications-related Headlines is a free online news summary service=20
provided by the Benton Foundation (www.benton.org). Posted Monday through=20
Friday, this service provides updates on important industry developments,=20
policy issues, and other related news events. Headlines are compiled by=20
Kevin Taglang (ktaglang( at )etpost.net) -- we welcome your comments.

BROADBAND/INTERNET

BUSH SETS INTERNET ACCESS GOAL
On Friday, President Bush announced he is setting a national goal of=20
"universal, affordable access for broadband technology by the year 2007."=20
His announcement seems to be a reaction to an earlier proposal from Sen=20
John Kerry (D-MA) that called for "spurring the growth of new industries=20
like the broadband technology that will dominate the future." President=20
Bush said, "This country needs a national goal for broadband technology,=20
for the spread of broadband technology. Then we ought to make sure as soon=
=20
as possible thereafter, consumers have got plenty of choices when it comes=
=20
to purchasing the broadband carrier. See, the more choices there are, the=20
more the price will go down." The President also stressed that access to=20
broadband technology not be taxed. President Bush spoke only of the=20
availability of the service and did not say how many households=20
could actually tap into it. He also did not propose tax credits or other=20
ways to make the service available to poor households.
FCC Chairman Michael Powell responded with the following statement: "The=20
president has set out a bold vision for broadband investment and deployment=
=20
over the next four years. I look forward to working with my commission=20
colleagues, Congress and the administration to deliver on this vision for=20
the American people. Universal and affordable access to broadband is vital=
=20
to the health and future growth of our economy."
[SOURCE: Washington Post (3/27), AUTHOR: Mike Allen]
http://www.washingtonpost.com/wp-dyn/articles/A28187-2004Mar26.html
(requires registration)
See also
Reuters: Bush pushes ubiquitous broadband by 2007=20
http://news.com.com/2100-1028-5180235.html?tag=3Dcd_top

"FOUR FREEDOMS" ENOUGH?
Speaking to audience of Capitol Hill staff at a forum co-sponsored by the=20
Consumer Federation of America and the Stanford Law Center for Internet and=
=20
Society, FCC Commissioner Michael Copps and Stanford Professor Lawrence=20
Lessig voiced support for FCC Chairman Michael Powell's "four Internet=20
freedoms:" freedom to access content, use applications, attach devices and=
=20
obtain service plan information (see=20
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-243556A1.pdf). Prof=20
Lessig said first three freedoms are integral to the =93network neutrality=
=94=20
movement; Commissioner Copps said he was pleased with the proposal, even=20
though he favors a more proactive approach. Chairman Powell's speech was=20
hailed as an important first step.
[SOURCE: Communications Daily, AUTHOR: Patrick Ross]
(Not available online)

FOUR TECHNOLOGIES MOVE TOWARD STARTING GATE
WiFi is the rage now, but by 2005, there are new technologies that may make=
=20
wireless Internet connections cheaper, faster and farther reaching. 1)=20
WiMax stations will be able to send and receive signals up to 30 miles away=
=20
as compared to the WiFi hotspots of 300 feet. The service is hoped to be a=
=20
competitor for DSL and cable, costing less than $50/month. 2) 802.16e is an=
=20
extension of WiFi that allows users to connect to Internet while traveling=
=20
at "vehicular speeds." 3) 802.11n will make available higher-speed local=20
networks, possibly allowing businesses to forgo the burden of laying and=20
maintaining Ethernet cabling throughout a building. 4) Ultrawideband is=20
intended primarily for in-home use to connect computers, stereos and TVs to=
=20
one another without wires.
[SOURCE: USAToday, AUTHOR:Amit Asaravala]
http://www.usatoday.com/usatonline/20040329/6055864s.htm
See Also
Wi-Fi signals turn up in some unexpected places=20
http://www.usatoday.com/usatonline/20040329/6055861s.htm
It's here, it's there and soon everywhere Wi-Fi connections spreading so=20
rapidly, you may never be out of touch
http://www.usatoday.com/usatonline/20040329/6055862s.htm

CLICK THE VOTE
Power in the networked world is diffused. What does that mean for politics?=
=20
A special report in this week's BusinessWeek tries to figure out the value=
=20
of Meetups, blogs, Internet commercials and online donations. In a=20
networked political world, much of the power likely will move from the=20
candidates to the groups that surround and sustain them. Social theorist=20
Howard Rheingold predicts that power in the Information Age will coalesce=20
around groups of networked people who organize behind a single idea, from=20
politics to fashion, and connect using the Internet and cell phones. He=20
calls them Smart Mobs, and he sees them starting to take shape. "If you can=
=20
match these volunteers, who have self-organized at no cost, with the task=20
that needs to be done, that could be a powerful combination," Rheingold=20
says. Howard Dean's campaign is still considered a model. For example, Gov=
=20
Dean's entire Net outlay, including salaries, barely topped $1 million.=20
That means it brought in nearly a dollar for every nickel spent -- a far=20
better return than the 65% average take from a traditional rubber-chicken=20
banquet. What's more, online fund-raising takes no time from the candidate,=
=20
and it brings in a slew of small contributors who don't expect favors in=20
return. See the URLs below for more on elections in the Internet Age.
[SOURCE: BusinessWeek, AUTHOR: Stephen Baker]
http://www.businessweek.com/magazine/content/04_13/b3876125.htm
"A Major Change in the Political Equation" by Howard Rheingold=20
http://www.businessweek.com/technology/content/mar2004/tc20040323_7536.htm
Web Politics: "It's Just the Beginning"=20
http://www.businessweek.com/technology/content/mar2004/tc20040323_4030.htm
The Business of Online Campaigns=20
http://www.businessweek.com/technology/content/mar2004/tc20040323_8062.htm

E-COMMERCE REPORT: BROAD GAINS IN ONLINE SHOPPING
The Pew Internet and American Life Project will release a study this week=20
finding that two-thirds of Internet users now shop online. "It's a=20
milestone in the norming of e-commerce," said Lee Rainie, director of the=20
Pew project. "What's striking about this is that the percentage of Internet=
=20
users who do shopping has been growing, even as the Internet population=20
continues to grow. So the increase is doubly important because it's a=20
bigger slice of a bigger pie." The Pew data also suggest that the=20
mainstreaming of Internet commerce is nearly complete. Statistics on gender=
=20
and ethnicity among online shoppers mirror those of off-line shoppers, Mr.=
=20
Rainie said. Half of the people who live in households with incomes of=20
$50,000 or less have now shopped online. There's a good deal more at the=20
URL below.
[SOURCE: New York Times, AUTHOR: Bob Tedeschi]
http://www.nytimes.com/2004/03/29/technology/29ecom.html
(requires registration)

CONTENT

UPDATE: INDECENCY AND MEDIA OWNERSHIP LINK
We've all seen watch Janet Jackson can do to liven up a policy debate, but=
=20
it is radio content that has become the lightning-rod family-entertainment=
=20
issue of the 2004 election. And opponents of media consolidation have found=
=20
the indecency issue is a useful lever to advance their arguments for more=20
limits on radio-station ownership. "There's a lot of anger about=20
consolidation, and it's become a target," says Jeff Smulyan, chief=20
executive of Emmis Communications which owns 27 radio stations. While many=
=20
radio executives concede programming has become more provocative, they say=
=20
it has nothing to do with consolidation. "It's the increasing competition=20
for listeners' attention that causes television programs and radio programs=
=20
to constantly push the envelope," says Andy Levin, Clear Channel's=20
Washington-based executive vice president. "With the explosion of the=20
Internet, everybody is competing for very precious moments of Americans'=20
time, and unfortunately, [many] go for edgier programming that's likely to=
=20
grab the public's attention."
[SOURCE: Wall Street Journal, AUTHOR: Sarah McBride sarah.mcbride( at )wsj.com=20
and Anne Marie Squeo annemarie.squeo( at )wsj.com]
http://online.wsj.com/article/0,,SB108052098981067495,00.html?mod=3Dtoda...
s_marketplace
(requires subscription)

A LA CARTE'S PUSHED UP HILL...
Although Senate Commerce Committee Chairman John McCain (R-AZ) admits that=
=20
passing legislation requiring cable operators to price channels on an=20
individual basis (known as a la carte) is dead this year, he's interested=20
in a proposal from Consumers Union. The proposal would test the concept for=
=20
digital cable subscribers in one market, studying the effects on cable=20
bills. Sen McCain would allow operators to continue to offer the expanded=20
basic tier of programming, but wants consumers to have more choice, too.=20
He's upset because cable rates continue to rise and there's no additional=20
value for consumers. Sen McCain notes that cable operators want to be able=
=20
to choose themselves which local TV stations they will carry on their=20
systems, but do not want to let consumers have choice. "I encourage the=20
industry to find a consistent message for itself =97 if they want choices,=
=20
provide the same choices for your customers," Sen McCain said.
[SOURCE: Multichannel News, AUTHOR: Ted Hearn]
http://www.multichannel.com/article/CA406421?display=3DTop+Stories
(requires subscription)
See Also:
B&C: =C0 La Carte Is Off The Senate's Menu=20
http://www.broadcastingcable.com/article/CA406396?display=3DTop+of+the+Week
SJMerc: A la carte cable TV suggested=20
http://www.mercurynews.com/mld/mercurynews/business/technology/8302779.htm

VIACOM PLANS A GAY CHANNEL, BUT THE RECEPTION ISN'T CLEAR
Two years ago, Viacom considered and abandoned at cable channel cable=20
network aimed at gays. The company now considers that a big mistake, Viacom=
=20
Chairman Sumner Redstone thinks it would have cost $30 million to launch a=
=20
channel that could now be worth $1 billion. So Viacom is looking at the=20
possibility again. But it is uncertain how popular such a channel would be=
=20
outside major cities (obviously the only place homosexuals watch TV). The=20
driver, of course, is that advertisers are increasingly attracted to gays=20
who spend nearly $500 billion a year. But not much is known about "gay"=20
viewing habits, Nielsen has never studied them. Some prominent gay=20
television executives and producers worry that gay viewers might resent=20
narrowly focused programming choices as attempts to pigeonhole them. "The=20
gay community is extremely diverse, [and] some would even say fragmented,"=
=20
says Kirk Iwanoski, vice president of marketing at the Sundance Channel.=20
"If you're going to go out there and make the claim that you're the gay=20
network, you're going to have to cover multiple aspects of the gay=
community."
[SOURCE: Wall Street Journal, AUTHOR: Joe Flint at joe.flint( at )wsj.com]
http://online.wsj.com/article/0,,SB108052626014067558,00.html?mod=3Dtoda...
s_marketplace
(requires subscription)

TELEVISION

AIDES: DTV SCHEME SCARY TO CONGRESS
Visions of pitchforks and torches are haunting Members of Congress as they=
=20
consider the FCC's tentative plan to speed the transition to digital only=20
television broadcasting. The fear is those implements of destruction would=
=20
be tightly held by those voters who do not rely on cable or satellite for=20
TV and have not switched to digital TV technology before analog=20
broadcasting ceases. =93People who cannot afford cable or satellite TV=20
services are certainly not in a position to spend $1,000 on a new TV or=20
$300 to $500 on the set-top box that is required to receive digital signals=
=20
and covert them to analog. I hope that before pursuing this policy any=20
further, you and your staff will consider the ramifications for all=20
segments of America and pursue policies that do not cause economic harm=20
[to] people who can ill afford it,=94 wrote Rep Elliot Engel (D-NY) in a=20
letter to FCC Chairman Michael Powell.
[SOURCE: Multichannel News, AUTHOR: Ted Hearn]
http://www.multichannel.com/article/CA406176?display=3DPolicy
(requires subscription)

LEISURE PURSUITS OF TODAY'S YOUNG MAN
If Nielsen Media Research is correct, if young men are not watching as much=
=20
TV as they used to, what are they doing? Well, they are doing what guys do:=
=20
playing games, obsessing over sports and girls, and hanging out with=20
buddies - often online. Computers and high-speed Internet connections allow=
=20
guys to download video clips, play online games, watch DVDs, listen to=20
music and view pornography. All together, these activities offer enough=20
distraction to keep guys from turning on the TV or, more precisely, when=20
spread across the entire demographic, distracting guys from television for=
=20
about 4.5 mins/day.
[SOURCE: New York Times, AUTHOR: John Schwartz]
http://www.nytimes.com/2004/03/29/technology/29guy.html
(requires registration)

TELECOM

WILL CONGRESS HAVE THE ANSWER?
Jackson puzzles over the three-legged revenue stool of basic rates,=20
intercarrier compensation and universal service funding. He finds, "Today's=
=20
telecom environment needs a comprehensive solution that allows for the=20
give-and-take necessary to create consensus, so we can avoid the=20
regulation-litigation cycle that has hindered the industry in recent years.=
=20
But it appears that getting all the pieces on the table is crucial to=20
solving this puzzle. Unless there is unprecedented cooperation between=20
federal and state regulators, it may be that the only way to do this is=20
through Congress."
[SOURCE: Telephony's Regulatory Insider, AUTHOR: Donny Jackson]
(http://www.heritage.org/Research/InternetandTechnology/index.cfm)

QUICK HITS

* Comcast has hired advocacy firm Issue Dynamics to help outreach efforts=20
with consumer groups and others. Speculation is that IDI will try to help=20
win support of public interest groups for Comcast-Disney merger. IDI was=20
founded by Samuel Simon who was president of Telecom Research and Action=20
Center.

'DIRTY DRIVING' LAWS PROPOSED
What are those people watching in the next lane? An increase in X-rated=20
viewing in cars has some legislators proposing legislation that would=20
prohibit the viewing of ''obscene'' programming that can be seen by other=20
drivers.
[SOURCE: USAToday, AUTHOR: Charisse Jones]
http://www.usatoday.com/usatonline/20040329/6056215s.htm
--------------------------------------------------------------

Benton's Communications-related Headlines for 3/26/04

CABLE
Escalating Cable Rates: Causes and Solutions

CONTENT
DBS Gets Political Speech, Kids Rules
FTC Paves Way for Media Violence Complaints
Publication: Indecency on the Air

REGULATION
Calling the Next Tech Challenge
U.N. Forum Debates Who Is in Charge of Internet

QUICK HITS
Broadcaster' Obligations to their Communities: Is the Public Interest
Standard still Relevant?
Update: Universal Service
Television Consumer Freedom Act

CABLE

ESCALATING CABLE RATES: CAUSES AND SOLUTIONS
Because there's so many cable subscribers out there, there's lots of
coverage of the Senate Commerce Committee's hearing on cable rates. Links
to testimony delivered are available at the Senate URL below. Committee
Chairman John McCain (R-AZ) likened cable choices to a "Soviet election
ballot" that says "take it or leave it," so you know everyone was in a good
mood Thursday morning. Sen McCain likes that cable operators will be giving
consumers the technology they need to block channels they don't want, but
thinks it is "obscene" that consumers would be charged for those channels.
He wants to see the industry voluntarily offer greater choice for consumers
such as a la carte programming. He's threatened a legislative mandate, but
a lukewarm reception from other senators at the hearing indicates he could
not get a bill passed through the committee. Sen Trent Lott (R-MS) also
support greater choice for cable customers: "I am not prepared to mandate
or regulate rates now or a la carte options, but if you don't do something
about it, we will." Cox Communications CEO James Robbins called a la carte
an economic model that "results in higher prices and fewer program choices."
[SOURCE: US Senate http://commerce.senate.gov/hearings/witnesslist.cfm?id=1127]
[SOURCE: Communications Daily, AUTHOR: Brigitte Greenberg]
B&C: A La Carte All But Dead
http://www.broadcastingcable.com/article/CA406050?display=Breaking+News
Mutlichannel: Bodenheimer: A la Carte a Consumer Disaster
http://www.multichannel.com/article/CA406048?display=Breaking+News
Gene Kimmelman, senior policy director for Consumers Union, testified at
the hearing, see a Press Release at:
http://www.consumersunion.org/pub/core_telecom_and_utilities/000925.html...
WP: Sorry -- No A la Carte Cable Channel Packaging Is So Much Cheaper,
Incredulous Senators Are Told
http://www.washingtonpost.com/wp-dyn/articles/A25188-2004Mar25.html
WSJ: Should Cable Be a la Carte, Not Flat Rate?
http://online.wsj.com/article/0,,SB108024393026565550,00.html?mod=politi...

CONTENT

DBS GETS POLITICAL SPEECH, KIDS RULES
The FCC has decided to apply to satellite operators modified versions of
broadcast and cable political broadcasting and children's programming
rules. DBS operators must provide reasonable access to political
candidates, charge the same lowest unit charge for political ads and keep
files of sales of political advertising. The operators are now limited to
10.5 minutes of advertising during every hour of programming directed at
children on weekends, 12 minutes on weekdays. The ruling is seen as a
victory for FCC Commissioner Michael Copps and for the Media Access Project
which pushed for the rules.
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton ]
http://www.broadcastingcable.com/article/CA406049?display=Breaking+News
(requires subscription)
[SOURCE: Communications Daily, AUTHOR: Jeanene Timberlake]
(Not available online)
LATimes: Satellite TV Under Broadcast Ad Rules
http://www.latimes.com/business/printedition/la-fi-rup26.7mar26,1,718163...
See also
Media Access Project Improves Public Access to Campaign Speech and Helps
Protect Children from Commercialism
http://www.mediaaccess.org/DBSPubIntPRFinal.pdf

FTC PAVES WAY FOR MEDIA VIOLENCE COMPLAINTS
The Federal Trade Commission is adopting new complaint categories so it can
better study media violence. The new categories are "ads for violent
entertainment products airing or appearing in media inappropriate for
children; ads containing an incorrect rating for violent content, or no
rating at all; cross-marketing of violent entertainment products to
children; and the sale or rental of violent entertainment products to
children." Currently there are no regulations against violence in
commercials, but the FTC has been studying violence marketing, particularly
to young audiences, and the complaints will help it better determine what
specifically is concerning the public, said Richard Kelly of the FTC's
Bureau of Consumer Protection. Complaints about violent programming will be
referred to the FCC.
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
http://www.broadcastingcable.com/article/CA405975?display=Breaking+News
(requires subscription)
FTC Press Release: http://www.ftc.gov/opa/2004/03/mediaviolence.htm

PUBLICATION: INDECENCY ON THE AIR
The FCC has levied $3.95 million in fines for broadcast indecency since
1990, with half the total assessed to shock-radio pioneer Howard Stern and
his employer Infinity Broadcasting, the Center for Public Integrity
reports. Five radio shows (Howard Stern, Bubba the Love Sponge, Opie and
Anthony, Elliott in the Morning and Madcow's Morning Madness) were
responsible for $3.44 million in proposed fines since 1990, or 87% of the
total. The top four shows aired on stations owned by Clear Channel
Communications or Viacom's Infinity division, the largest and second
largest radio broadcasters in the country, respectively. Using FCC records
and LexisNexis legal research, the Center for Public Integrity identified
72 broadcast indecency proceedings instigated by the FCC since 1990.
[SOURCE: Center for Public Integrity, AUTHOR: John Dunbar]
http://www.publicintegrity.org/telecom/report.aspx?aid=239&sid=200

REGULATION

CALLING THE NEXT TECH CHALLENGE
Samuelson celebrates the choices consumers have these days for pay
television, phone and high-speed Internet services and touts the coming
"wave of the future" -- Internet phone service (VoIP). But new technologies
create both opportunities and threats. VoIP, for example, could be a threat
to the $125 billion local phone networks of Verizon, BellSouth, SBC, Qwest.
Today's choices are due o the Telecommunications Act of 1996, but many
companies still compete with lawyers instead of providing better, cheaper
service. Samuelson concludes: "One way or another, the new technologies are
coming. But it would be better if Congress encouraged them by phasing out
the 1996 telecom act's outmoded regulatory requirements. Companies can
compete with each other in two ways: by deploying their lawyers and
lobbyists -- gaining competitive advantage through legislative and legal
decisions -- or by providing new technologies that offer superior service,
lower costs or both. It seems an easy choice."
[SOURCE: Washington Post, AUTHOR: Robert J. Samuelson]
http://www.washingtonpost.com/wp-dyn/articles/A25468-2004Mar25.html
(requires registration)

U.N. FORUM DEBATES WHO IS IN CHARGE OF INTERNET
The International Corporation for Assigned Names and Numbers (ICANN) was
chartered in 1998 by the U.S. government as a private nonprofit body to
assign names and numbers to manage domain Internet names. But many
developing countries want the Internet to be governed through the
International Telecommunications Union, a United Nations agency. The UN is
hosting a two-day "Global Forum on Internet Governance" this week to
discuss whether or not governments should have more say in how the Internet
is run. Poorer countries think governments should be involved, claiming
they will make it a greater priority to close the digital divide. Richer
nations want to preserve the status quo. The forum of more than 200
representatives from government, the private sector and civil society are
debating issues such as regulation and transparency, and how to balance
those with innovation in expanding the uses of the Internet. The result
will be a report to the United Nations Information and Communication
Technology Task Force which will present its findings to the World Summit
on the Information Society in Tunis in 2005.
[SOURCE: Reuters, AUTHOR: Grant McCool]
http://www.reuters.com/newsArticle.jhtml;jsessionid=4MKJT1OTH0TBQCRBAELC...

QUICK HITS

* On April 1, the Newhouse School of Public Communications at Syracuse
University will host a panel discussion and community "town meeting"
featuring Federal Communications Commission Commissioner Michael Copps. The
panel is titled, "Broadcaster' Obligations to their Communities: Is the
Public Interest Standard still Relevant?" The symposium is co-sponsored by
Clear Channel Communications and will be held in Newhouse's Studio A, from
1-3 p.m., followed by a reception. Other panelists will include David
O'Neil, a Washington, D.C. communications attorney; Cheryl Leanza, deputy
director of the communications advocacy group The Media Access Project; and
Richard Novik, senior vice president of the New York State Broadcaster's
Association. Terrance Smith, media correspondent and senior producer for
"The NewsHour with Jim Lehrer," will moderate. Management from local Clear
Channel stations and state and local representatives will also be in
attendance. The Newhouse "town meeting" will address questions about
indecency, quality and quantity of news and political coverage, and media
ownership and concentration.
More info: Amy Mehringer aemehrin( at )syr.edu

* Communications Daily reports that the FCC may call for comments "in a
month or 2" on a proposal by the Federal-State Joint Board on Universal
Service to make changes in the funding program's operation, including a
controversial plan to limit funding to one line per customer.

* Television Consumer Freedom Act (H. R. 4024), introduced by Rep Ron Paul
(R-TX), would eliminate retransmission consent and
must-carry for cable operators and satellite carriers and repeal
regulations that mandate that all TVs contain digital technology. (I'm
feeling freer just knowing the bill is out there.)
--------------------------------------------------------------
...and we are outta here. Have a great weekend.
--------------------------------------------------------------

Benton's Communications-related Headlines for 3/25/04

See today's Senate hearing on cable TV rates
http://commerce.senate.gov/hearings/witnesslist.cfm?id=1127
For upcoming media policy events, see http://www.benton.org/calendar.htm

LEGISLATION
State Bans on Municipal Telcos Upheld
Telecom Act Rewrite Update: Wireless
Update: Congress and Broadcasting
WTO: Ban on Web Gambling Breaks Global Trade Pacts

DIGITAL DIVIDE
For Some Internet Users, It's Better Late Than Never

FUNDING
Two Funding Opportunities from ITVS: Diversity Development Fund &
Local Independents Collaborating With Stations

LEGISLATION

STATE BANS ON MUNICIPAL TELCOS UPHELD
The Supreme Court ruled Wednesday that states may pass laws restricting
cities from offering telecommunications services. While the Telecom Act of
1996 was intended to spur competition, the Court ruled, Congress did not
necessarily intend to open up competition to government-owned
municipalities and publicly funded utilities. The ruling will help protect
phone companies from more competition in many local markets. Municipally
owned networks have been growing in popularity, particularly in rural
regions, where incumbent telephone companies are less likely to introduce
cutting-edge services. "We are disappointed in the ruling," said James
Baller, founder of the Baller Herbst Law Group, which helped litigate the
case. "If it had gone in our favor, it would have made it illegal for
states to limit these networks. But even without this, we've had good
success in convincing many states that there are benefits to municipally
owned networks, and we will continue in our efforts."
[SOURCE: Communications Daily & News.com, AUTHOR: Dinesh Kumar, Marguerite
Reardon]
(Not available online)
http://news.com.com/2100-1037-5178640.html?tag=nefd_hed
See Also
WSJ:
http://online.wsj.com/article/0,,SB108014401899564182,00.html?mod=home%5...
USAToday: http://www.usatoday.com/usatonline/20040325/6042752s.htm
LATimes:
http://www.latimes.com/business/printedition/la-fi-sbc25mar25,1,4249775....

TELECOM ACT REWRITE UPDATE: WIRELESS
If the Telecom Act of 1996 is rewritten in the next Congress, the wireless
industry would like preemption of state wireless regulations and eggs in
their beer. Executives at this week's CTIA meeting in Atlanta complained
they are subject to oppressive taxes, unfair siting arrangements, unfunded
mandates imposed by state and local governments. One executive said the
proposed consumer bill of rights in California poses a "frightening"
prospect. But chances of a rewrite of the Act appear to be slim
and preemption of state and local regulations will probably be hard to
"pull off." So one executive noted the industry's recent adoption of a
voluntary consumer code of best practices to address service quality issues
and suggested, "We should do as much as we can on our own and not think we
are going to be able to rewrite the Telecom Act."
[SOURCE: Communications Daily, AUTHOR: Mary Greczyn]
(Not available online)
See also:
NEW YORK STATE IS URGED TO RESTORE OVERSIGHT OF CELLPHONE COMPANIES
AARP, the Public Utility Law Project and other consumer groups are asking
the New York State Legislature to restore the state's Public Service
Commission's jurisdiction over cellphone companies operating in New York.
The groups called for better disclosure of information on cellular bills
and want to require cellphone companies to tell customers where on the map
their phones will work using the E-911 service. They also want users to be
able cancel their contracts after receiving their first bills.
[SOURCE: Wall Street Journal, AUTHOR: Associated Press]
http://online.wsj.com/article/0,,SB108016980145964748,00.html?mod=techno...
(requires subscription)

UPDATE: CONGRESS AND BROADCASTING
Members of Congress are looking our for broadcasters on two fronts:
spectrum allocation and competition from satellite radio. In regards to the
former, House Telecommunications Subcommittee Chairman Fred Upton (R-MI)
and House Commerce Committee Ranking Member John Dingell sent the FCC a
letter about the Commission's plan for reclaiming spectrum used to beam
news and sports coverage to TV stations. The FCC wants to auction this
"backhaul" spectrum to satellite operators. But the lawmakers raised
concerns the plan could "impair the ability of local television stations to
provide communities they serve with live, local coverage of emergencies as
well as routine news events" and create incompatibilities between large and
small markets stations.
Meanwhile, Reps. Chip Pickering (R-MS) and Gene Green (D-TX) have
introduced legislation that would order the FCC to investigate satellite
radio provider XM's plan to offer local programs over nationwide channels.
The bill also would bar satellite programmers from inserting local
programming into ground-based repeaters in tunnels and other areas where
the satellite companies say they need to fill gaps in satellite reception.
[SOURCE: Broadcasting&Cable, AUTHOR: Bill McConnell]
http://www.broadcastingcable.com/article/CA405705?display=Breaking+News
http://www.broadcastingcable.com/article/CA405691?display=Breaking+News
(requires subscription)

WTO: BAN ON WEB GAMBLING BREAKS GLOBAL TRADE PACTS
US bans against placing or taking bets over the Internet violate global
trade pacts, the World Trade Organization ruled. US states set their own
gambling laws, but the Justice Department maintains that gambling on the
Internet is illegal. Few individuals have been prosecuted for gambling on
the Internet, but people who run Web sites have been, and several banks
that issue credit cards have agreed not to handle transactions involving
offshore Web-gambling companies.
[SOURCE: Wall Street Journal, AUTHOR: Scott Miller scott.miller( at )wsj.com &
Christina Binkley christina.binkley( at )wsj.com]
http://online.wsj.com/article/0,,SB108015214586864294,00.html?mod=home_w...
(requires subscription)

DIGITAL DIVIDE

FOR SOME INTERNET USERS, IT'S BETTER LATE THAN NEVER
Once largely written off as a lost cause, older Americans are now coming
into their own as Internet users. They are researching their family
histories, sending e-mail, running virtual book clubs, reading about
religion and travel, and pursuing other interests lifelong and new.
According to a new study by the Pew Internet and American Life Project, a
research organization in Washington, the ranks of Americans over 65 who use
the Internet have jumped by 47% since 2000, making them the fastest-growing
group to embrace the online world. But overall, just 22% of this group is
online compared with 75% of ages 30-49. Susannah Fox, director of research
at Pew, said the biggest factor pushing older Americans toward Internet use
has been family. "Younger Internet users have probably encouraged their
parents and grandparents to start communicating with e-mail, and many
seniors have turned out to love it." There's much more at the NYTimes URL
below or the full report at
http://www.pewinternet.org/reports/pdfs/PIP_Seniors_Online_2004.pdfhttp:...

[SOURCE: New York Times, AUTHOR: Katie Hafner]
http://www.nytimes.com/2004/03/25/technology/circuits/25elde.html
(requires registration)

FUNDING

Independent Television Service (ITVS) Diversity Development Fund
Deadline: April 9th, 2004
ITVS has announced a new funding initiative for minority producers, the
Diversity Development Fund. The program is looking to support artists of
color in the development phase of their project for public television. ITVS
is seeking innovative stories in any genre that will advance different
points of view, take creative risks and inspire multicultural dialogue. For
more info: http://www.itvs.org/producers/funding.html

Local Independents Collaborating With Stations (LInCS), from ITVS
Deadline: May 26, 2004
Independent Television Service (ITVS) fund provides matching monies (up to
$75,000) for collaborations between independent producers and public TV
stations. Single shows are considered in any genre or stage of development.
LInCS seeks projects that differ from standard television fare. Programs
should stimulate civic discourse and find innovative ways to explore
regional, cultural, political, social or economic issues. The ideal project
will show potential to engage both regional and national audiences,
revealing universal themes through the lens of local perspectives and
realities. For more info: Elizabeth_Meyer( at )itvs.org; http://www.itvs.org
--------------------------------------------------------------

Benton's Communications-related Headlines for 3/24/2004

TELECOM
In Fights Over Telecom Issues, Record Shows, Kerry's Worked on Many Sides
Taking Broadband Internet Access to the Last 'Last Mile': To Rural America

BROADCASTING
Update: Indecency Legislation
Would last TV station turn out the lights?
The Real Story Behind Must-Carry

QUICK HITS
EU Fines Microsoft $613 Million, Imposes Tough Sanctions
Online Swindlers, Called 'Phishers,' Are Luring Unwary
Senators Struggle to Define Computer 'Spyware'
Study: Price Gives DSL an Edge in Broadband
Policy People: Jack Valenti

TELECOM

IN FIGHTS OVER TELECOM ISSUES, RECORD SHOWS, KERRY'S WORKED ON MANY SIDES
Congressional aides, former regulators and lobbyists familiar with Sen John=
=20
Kerry's (D-MA) record say that unlike other senators who play a guiding=20
role in telecommunications policies affecting billions of dollars of=20
commerce, Sen Kerry has not been a consistent ally of any particular cause=
=20
or industry. Even his corporate donors describe his regulatory stances as=20
unpredictable. "Some members of Congress pick what side they want to be on=
=20
in the holy jihad of telecommunications policy," said former FCC Chairman=20
Bill Kennard. "You never got that sense from John. He was above the fray."=
=20
Sen Kerry has tried to aid his home state's largest employer, Bell Atlantic=
=20
(now Verizon). But by and large, Sen Kerry's record on issues the Senate=20
Commerce Committee (on which he sits) regulates wins praise from consumer=20
groups. "In general, John Kerry has been a very strong consumer advocate=20
when it comes to telecommunications issues," said Gene Kimmelman, public=20
policy director at Consumers Union. But Mr. Kimmelman also offered a caveat=
=20
regarding regulation of cable television prices, an issue that has been=20
hard fought and heavily lobbied in Congress since the mid-1980's. "When it=
=20
came to cable he was not in favor of capping skyrocketing cable rates or=20
promoting more competition among cable monopolies." See the URL below for=20
this long piece that looks at Sen Kerry's legislative efforts, his=20
interactions with the FCC and his relationship to a Boston law firm where=20
is his brother is a partner and which represents telecom clients.
[SOURCE: New York Times, AUTHOR: Timothy O'Brien & Stephen Labaton]
http://www.nytimes.com/2004/03/24/politics/campaign/24TELE.html
(requires registration)

TAKING BROADBAND INTERNET ACCESS TO THE LAST 'LAST MILE': TO RURAL AMERICA
Broadband is no longer a luxury: it's a necessity. And although urban and=20
suburban dwellers are signing up fast for broadband connections, people in=
=20
rural America are still waiting for last miles solutions. Klinkenborg=20
likens today's need to bring broadband connections to rural areas to the=20
1930s efforts to bring electricity to everyone. "One of the most critical=20
issues facing this country is the increasing economic and cultural=20
isolation of rural communities =97 the abandonment and the ultimate=20
re-democratization of the landscape. No business would settle in a town=20
that lacked electricity, and we are now at the point where no business will=
=20
settle in a town that lacks broadband access," Klinkenborg writes. The=20
solution will probably not come from telecom giants, but from the=20
initiative and inventiveness of local communities, partnering with=20
government and small tech companies.
[SOURCE: New York Times, AUTHOR: Verlyn Klinkenborg]
http://www.nytimes.com/2004/03/24/opinion/24WED4.html
(requires registration)

BROADCASTING

UPDATE: INDECENCY LEGISLATION
First Amendment attorneys are "champing at the bit" to argue against=20
indecency legislation before the Supreme Court. They are warning US=20
senators to reject provisions in legislation moving through the chamber=20
that invite reversal of the government's right to regulate such content.=20
The basic tenet of these indecency regulations is to protect children from=
=20
exposure to sexually explicit or other "patently offensive" material. "The=
=20
only speakers in the marketplace that are subject to the indecency standard=
=20
are the broadcasters," says Marjorie Heins, director of the Free Expression=
=20
Policy Project in New York and author of a book on the topic titled "Not In=
=20
Front of the Children." "The question is whether the Supreme Court will=20
say, 'We've got so much else out there now that it's silly and unfair to=20
subject broadcasters to this indecency standard.' "
[SOURCE: Wall Street Journal, AUTHOR: Anne Marie Squeo at=20
annemarie.squeo( at )wsj.com]
http://online.wsj.com/article/0,,SB108008903562863646,00.html?mod=3Dpoli...
%5Fprimary%5Fhs
(requires subscription)
See Also:
B&C: ACLU Tells Senate to Scuttle Smut Bill=20
http://www.broadcastingcable.com/article/CA405608?display=3DBreaking+News
LA Times: Satellite Radio Eager to Receive Howard Stern Fans
http://www.latimes.com/business/printedition/la-fi-radio24mar24,1,774853...
ory?coll=3Dla-headlines-pe-business

WOULD LAST TV STATION TURN OUT THE LIGHTS?
Hazlett, a former chief economist at the FCC, notices that public=20
broadcasters and some TV broadcasters are eager to end their analog=20
transmissions and go to digital only broadcasts. Why? In part because they=
=20
do not want to pay electricity bills to broadcast both analog and digital=20
TV signals and, in part, Hazlett believes, because they don't know the=20
value of the spectrum they are using because they get to use it for free.=20
Broadcasters are so enamored with getting cable and satellite carriage=20
rights that they are forgetting or ignoring how they could compete with=20
these pay systems using digital broadcasts. Pushed by hungry wireless=20
industries, Congress and the FCC seem to be moving toward a policy that=20
sets a date certain for the switch to digital only broadcasts. That can't=20
come too soon for innovators who should be allowed to bid on spectrum and=20
use it anyway they please, Hazlett argues. "Alert station owners, like=20
those in public television, already see that TV programming may be a better=
=20
business without spewing useless radiation. Rather than clinging to a=20
TV-band plan crafted during the Truman administration, regulators ought to=
=20
end the blockade preventing prime spectrum from accommodating the wireless=
=20
technologies of today and tomorrow."
[SOURCE: The Hill, AUTHOR: Thomas Hazlett, Senior Fellow at the Manhattan=20
Institute ]
http://www.hillnews.com/news/032304/ss_hazlett.aspx

THE REAL STORY BEHIND MUST-CARRY
The release of former Supreme Court Justice Harry A. Blackmun's papers=20
recently sheds light on how close the Court came to striking down=20
provisions in the 1992 Cable Act that created must-carry. The provisions=20
were ultimately approved by the Court in a 5-4 decision, but were close to=
=20
a 5-4 rejection until Justice David H. Souter was convinced to change his=20
mind by Justice Blackmun. Mandatory cable carriage of local TV stations=20
began with the Cable Television Consumer Protection and Competition Act, a=
=20
1992 law enacted over the veto of former President Bush a month before his=
=20
re-election defeat.
[SOURCE: Multichannel News, AUTHOR: Ted Hearn]
http://www.multichannel.com/article/CA404902?display=3DTop+Stories
(requires subscription)
Free Press has posted the story at
http://www.mediareform.net/news/article.php?id=3D2838

QUICK HITS

EU FINES MICROSOFT $613 MILLION, IMPOSES TOUGH SANCTIONS
The European Commission, the European Union's top antitrust authority, has=
=20
fined Microsoft $613 million for abusing its Windows monopoly. Microsoft=20
has 120 days to reveal the source code for Windows so rivals can create=20
competing server software and it has 90 days to offer personal-computer=20
manufacturers a separate version of its Windows operating program that=20
doesn't include its Windows Media Player.
[SOURCE: Wall Street Journal]
http://online.wsj.com/article/0,,SB108012031906164011,00.html?mod=3Dhome...
ts_news_us
(requires subscription)
See Also
NYT: http://www.nytimes.com/2004/03/24/business/24place.html
NYT: http://www.nytimes.com/2004/03/24/technology/24soft.html

ONLINE SWINDLERS, CALLED 'PHISHERS,' ARE LURING UNWARY
Gangs of organized crime in Eastern Europe may be responsible for the wave=
=20
of scams called "phishing," in which someone sends an email message that=20
pretends to be from an ISP, an online merchant or bank with the aim of=20
stealing the recipient's passwords, credit card numbers and other financial=
=20
information. Learn more at URL below.
[SOURCE: New York Times, AUTHOR: Saul Hansell]
http://www.nytimes.com/2004/03/24/technology/24PHIS.html?hp
(requires registration)

SENATORS STRUGGLE TO DEFINE COMPUTER 'SPYWARE'
The Senate is considering a bill that would require companies to obtain=20
permission before installing a piece of software on a consumer's computer,=
=20
and provide an easy way for the consumer to remove the software if he=20
wished. The Senate Communications Committee (Commerce) met Tuesday to=20
discuss "spyware" and how to regulate it before it drives people off of the=
=20
Internet. But some are cautioning that legislators must first come up with=
=20
a precise definition of spyware, software that secretly tracks computer=20
users' activities, before passing any bills. "We really have to spend a=20
little time, take a deep breath and define what we're after here," said=20
Jerry Berman, president of the Center for Democracy and Technology (CDT).
[SOURCE: Reuters, AUTHOR: Andy Sullivan]
http://www.reuters.com/newsArticle.jhtml?type=3DtechnologyNews&storyID=3...
8795&section=3Dnews
See also
Link to Senate hearing:=20
http://commerce.senate.gov/hearings/witnesslist.cfm?id=3D1125
More from CDT: http://www.cdt.org/testimony/20040323berman.pdf
http://www.cdt.org/privacy/spyware/

STUDY: PRICE GIVES DSL AN EDGE IN BROADBAND
Forrester Research reported Tuesday that 61% of people surveyed said they=20
would switch to a faster broadband service, if it were priced comparably to=
=20
their dial-up service -- usually between $10 and $25 a month. But only 17=
=20
percent said they would upgrade to a $45 broadband service. While cable=20
modem service usually runs around $45/month, DSL service usually costs=20
between $30 and $40 a month.
[SOURCE: C-Net|News.com, AUTHOR: Jim Hu]
http://news.com.com/2100-1032-5178050.html?tag=3Dcd_top

POLICY PEOPLE: JACK VALENTI
Two articles this morning talk about Jack Valenti's eagerness to step down=
=20
from long-time post at Motion Picture Association of America.
Jack Valenti's Long Goodbye: No Successor Yet, but MPAA Chief Is Ready to Go
WashPost:=
http://www.washingtonpost.com/wp-dyn/articles/A18981-2004Mar23.html
Valenti Rules Out an Extended Engagement
LATimes:=20
http://www.latimes.com/business/printedition/la-fi-valenti24mar24,1,4515...
story?coll=3Dla-headlines-pe-business
--------------------------------------------------------------

Benton's Communications-related Headlines for 3/23/04

TELEVISION
Update: Indecency Legislation
They've Got Their HDTV and Multicast, Too
Public TV's Vision of Itself: 'A Lens for Understanding the World'

TELEPHONY
A Ceasefire in the Phone Wars?

QUICK HITS
On the Web, Gen-Y and Civic Duty Click
CTCNet Awards $1 Million to Community Based Organizations

CORRECTION

Communications-related Headlines is a free online news summary service
provided by the Benton Foundation (www.benton.org). Posted Monday through
Friday, this service provides updates on important industry developments,
policy issues, and other related news events. Headlines are compiled by
Kevin Taglang (ktaglang( at )etpost.net) -- we welcome your comments.

TELEVISION

UPDATE: INDECENCY LEGISLATION
Since the House overwhelmingly passed legislation aimed at curbing indecent
broadcast content, attention is now on a similar bill moving through the
Senate. The bill could reach the Senate floor before the April 12 recess
and the debate over the bill is likely to include regulation of cable
content and the FCC's new media ownership rules. Senator John Breaux (D-LA)
will lead the charge for applying decency regulations to cable and DBS
operators despite constitutional concerns. Senators Olympia Snowe (R-MA),
Trent Lott (R-MS) and Byron Dorgan (D-ND) will push an amendment that would
require the General Accounting Office to study media ownership
consolidation to determine whether there's a correlation between bigger
media and indecency. If these provisions are included in a bill passed by
the Senate, there will be a huge push to delete them when the legislation
goes to conference.
Meanwhile, at the Cable TV Public Affairs Association conference, cable
leaders are saying they need to educate policymakers about the First
Amendment rights of cable. It is the responsibility of parents to police
what kids are viewing, some cable execs argue. The industry seems to be
unanimously against "a la carte" channel choice for cable customers.
Johnathan Rodgers, CEO of TV One which targets African-Americans, said a la
carte programming would further divide American society. "Will people who
are not African-Americans pick [TV One]? Probably not. Should they see this
channel every now and then? Absolutely, yes." He said a la carte would just
continue to "isolate and separate us, one from the other."
[SOURCE: Communications Daily, AUTHOR: Terry Lane & Brigitte Greenberg]
(Not available online)
See also:
CABLE FLOATS INDECENCY PLAN
Companies representing about 85% of all cable subscribers will offer free
"traps" that can block unwanted channels. The move comes during a storm in
Washington over indecent content on radio and TV and just days before
tomorrow's Senate Commerce Committee hearing on rising cable prices (see
URL below). Senate Commerce Chairman John McCain (R-AZ) is pushing the
industry to let consumers choose cable programming a la carte; others would
like to see "family friendly" tiers of cable programming.
[SOURCE: Wall Street Journal, AUTHOR: Mark Wigfield
mark.wigfield( at )dowjones.com]
http://online.wsj.com/article/0,,SB108000876044262552,00.html?mod=politi...
(requires subscription)
US Senate Escalating Cable Rates: Causes and Solutions
http://commerce.senate.gov/hearings/witnesslist.cfm?id=1127
B&C: Senate Likely to Vote on Own Smut Bill
http://www.broadcastingcable.com/article/CA405247?display=Breaking+News
(requires subscription)
Multichannel: A la Carte Top of Mind at CTPAA Confab
http://www.multichannel.com/article/CA405246?display=Breaking+News
(requires subscription)

THEY'VE GOT THEIR HDTV AND MULTICAST, TOO
Boston's WGBH and New York's WNET have collaborated to create to digital
channels: World and Create. Comcast has already agreed to bring the
channels to New England cable subscribers and cable operators in the New
York area seem ready to do the same for WNET. The deals will give the
stations cable carriage of both HDTV channels and multicast channels --
just what many public stations across the country want from cable systems.
In both New York and Boston, public TV is operating two transmitters and
the cable operators will transmit the output of both. "The obscure but
important thing about this -- from the 'aha' policy point of view -- is
that this agreement with Comcast secures carriage for two transmitters, "
says WGBH General manager Jon Abbott. "That's groundbreaking in an
environment with no must-carry." Cable operators are finding that public
stations digital offerings are incentive for customers to upgrade to
digital service.
[SOURCE: Current, AUTHOR: Karen Everhart]
(http://www.current.org/)

PUBLIC TV'S VISION OF ITSELF: 'A LENS FOR UNDERSTANDING THE WORLD'
"Public television, through its community-based programming and services,
will be a unifying force in American culture, a lens through which we can
understand our diverse nation and the world." The proceeding sentence is a
vision statement adopted by public television station leaders February 23
at the PBS Annual members Meeting. The PBS Board will review the statement
at a meeting later this month and stations hope the board will adopt it and
build it into strategic planning.
[SOURCE: Current, AUTHOR: Karen Everhart]
http://www.current.org/ptv/ptv0404mission.shtml

TELEPHONY

A CEASEFIRE IN THE PHONE WARS?
Long distance and local telephone service providers seem close to agreeing
on a proposal they will present to the FCC that would eliminate entirely
the access fees carriers pay to local networks to complete long distance
calls. For consumers, the deal would mean lower long distance rates, but
higher fixed rates for local service. Higher-fixed charges mean consumers
who don't make many calls -- often the poor and elderly -- would end up
paying more. Mark Cooper, research director of the Consumer Federation of
America, complains that no customers were invited to participate in the
negotiations. "Consumers don't want fixed-line charges on the bottom of
their bill," he says. And if small rural telephone companies balk,
farm-state congressmen are likely to question the agreement.
[SOURCE: BusinessWeek, AUTHOR: Catherine Yang]
http://www.businessweek.com/technology/content/mar2004/tc20040312_3033_t...

QUICK HITS

ON THE WEB, GEN-T AND CIVIC DUTY CLICK
The Center for Social Media at American University will release a two-year
study today examines the burgeoning presence of civically active young
people on the Internet. Researchers looked at 300 websites that are wholly
or partly geared toward encouraging Generation Y - anyone born in or after
1979 - to vote, volunteer, protest and participate in their communities.
Kathryn Montgomery, the principle author of the study, said researchers
were surprised at the amount of civic sites they discovered for Generation
Y, especially the number created by the young people themselves. The sites
they studied promote civic involvement in 10 areas, including philanthropy
and volunteering, global and local activism, and tolerance and youth
development. "Part of what they are doing online is expressing,
communicating and, especially with blogs, creating whole new mediums, whole
new vehicles for getting their voices out."
[SOURCE: Los Angeles Times, AUTHOR: Erin Ailworth]
http://www.calendarlive.com/printedition/calendar/cl-et-erin23mar23,2,36...
(requires subscription)
Center for Social Media
http://www.centerforsocialmedia.org/

CTCNET AWARDS $1 MILLION TO COMMUNITY BASED ORGANIZATIONS
Over 50 community-based organizations from across the U.S. have received
nearly $1 million in grants through two unique capacity-building programs
designed by the Community Technology Centers Network (CTCNet)
(http://www.ctcnet.org). CTCNet has awarded $750,000 in competitive grants
to 42 California community-based organizations meeting the needs of at-risk
youth and homeless individuals, including people with disabilities, through
Connections for Tomorrow (C4T) (http://www.ctcnet.org/c4t). C4T is a
three-year collaboration with the Alliance for Technology Access
(http://www.ataccess.org) and TechMission (http://www.techmission.org)
funded by the U.S. Department of Health and Human Services. The listing of
2003-2004 grantees is available at
(http://www.ctcnet.org/c4t/grants/ca2004grantees.htm). CTCNet also selected
eight U.S. community organizations to receive over $175,000 total through
Youth Visions for Stronger Neighborhoods
(http://www.ctcnet.org/youthvisions). The program, funded through the
Corporation for National Service's Learn and Serve America program
(http://www.learnandserve.org), is an effort to support organizations
working with youth populations (ages 12-18) to implement multimedia
education activities with a civic engagement focus.
[SOURCE: Community Technology Centers Network Press Release]
http://www.ctcnet.org/about/news/2004/C4T032204.htm

CORRECTION: The challenge to the FCC's broadcast flag rules we reported on
March 11 incorrectly identified the American Library Association and the
Electronic Frontier Foundation as leading the effort. In fact, Public
Knowledge is coordinating the lawsuit and the case was filed on January
30. The link to PK's filings is:
http://www.publicknowledge.org/issues/fcc-flag-case/
--------------------------------------------------------------

Benton's Communications-related Headlines for 3/22/04

the speed of SneakerNet... sorry for the delay; we've had some technical
difficulties. KT)

BROADCASTING
Broadcasters Hate Digital-TV Proposal
FCC Commissioner's Mission: Cleaning Up Radio, Television

MEDIA & POLITICS
Marketers Pitch to Young Voters

QUICK HITS
U.S. Net Access -- Three Out of Four Ain't Bad
What's On?
AOL Says It Sees Sharp Decline in Spam
Web Users Thwart Sites' Efforts To Collect Personal Information
Publication: What Every Citizen Should Know About Digital Rights Management
E-Commerce Report: Web Radio Said to Be Ready for Ads
Conf Recap: Can Media Artists Survive Media Concentration?
Mobile Industry Focuses on Fixing Basics

Communications-related Headlines is a free online news summary service
provided by the Benton Foundation (www.benton.org). Posted Monday through
Friday, this service provides updates on important industry developments,
policy issues, and other related news events. Headlines are compiled by
Kevin Taglang (ktaglang( at )etpost.net) -- we welcome your comments.

BROADCASTING

BROADCASTERS HATE DIGITAL-TV PROPOSAL
FCC Chairman Michael Powell and Media Bureau Chief Kenneth Ferree have
developed a new approach to the transition to digital television that aims
for an early return of valuable spectrum now used for analog TV broadcasts.
The plan would require cable operators to downconvert off-air digital
signals to analog. Those cable households, combined with satellite
subscribers with a local-TV signal package, would be included when counting
how many TV households in a market are digital-ready. By law broadcasters
in any market with 85% of households digital-ready must return their analog
spectrum at the end of 2006. The Powell-Ferree proposal is a new way of
measuring digital-ready and will greatly accelerate the return of spectrum.
But some think that 2007 may be too early for digital-only broadcasting as
many analog sets in homes not wired for pay-TV will need digital TV
convertor boxes. Some think that's a political time bomb.
[SOURCE: Multichannel News, AUTHOR: Ted Hearn]
http://www.multichannel.com/article/CA404809?display=Policy
(requires subscription)
Public Television also has a plan to accelerate the return of analog TV
spectrum.
Press release: http://www.apts.org/html/pressroom/DOB_3_18_04.htm
Briefing paper: http://www.apts.org/html/pressroom/DOB_Media_Breifing.pdf

FCC COMMISSIONER'S MISSION: CLEANING UP RADIO, TELEVISION
A look at FCC Commissioner Michael Copps' efforts, both before and after
the Super Bowl, to reign in indecent broadcast content. Commissioner Copps
is glad to see Washington "talking the talk" of indecency regulation, but
wants to see the FCC "walk the walk," too. "I'm not trying to establish a
national nanny here, but we only have to send one case to [license]
hearings and the message would go forth to broadcasters all over the U.S.
that this is a new era. . . . Right now, [broadcasters] not only don't fear
us, they don't respect us, either." In this "people piece," Andrew Jay
Schwartzman, a veteran communications lawyer and FCC observer, calls Copps
"a real thinker, a true intellectual." Mr. Schwartzman also praises
Commissioner Copps's political acumen, saying he "ran circles around
Michael Powell" on the media ownership issue by linking it with the
indecency issue. In doing so, he says, Commissioner Copps forged a broad
coalition of liberals and moderates opposed to greater media concentration
and conservatives upset by growing media indecency. Says Mr. Schwartzman,
"He's been the most effective minority commissioner in the 30 years I've
been doing this."
[SOURCE: Washington Post, AUTHOR: Paul Farhi]
http://www.washingtonpost.com/wp-dyn/articles/A13491-2004Mar21.html
(requires registration)

MEDIA & POLITICS

MARKETERS PITCH TO YOUNG VOTERS
Is Ben & Jerry's the official ice cream of the 2004 election? Marketers are
searching for ways to capitalize on one of the last uncommercialized
events: election season. Motorola, Ben & Jerry's and 7-Up have signed up to
support Rock the Vote this year; 40-50% of this year's Rock the Vote budget
is expected to come from marketing partners. But the strategy poses risks
for the marketers and the nonprofit groups, said Kathryn Montgomery, a
professor of communication at American University in Washington. "Genuine
political impulses or political activities can get trivialized or get
translated into a marketing opportunity. You need to be careful about
drawing the line."
[SOURCE: New York Times, AUTHOR: Nat Ives]
http://www.nytimes.com/2004/03/22/business/media/22adco.html
(requires registration)

QUICK HITS

U.S. NET ACCESS -- THREE OUT OF FOUR AIN'T BAD
Nielsen/NetRatings now estimates that 204.3 million Americans, or 74.9% of
the population above the age of two and living in households equipped with
a fixed-line phone, have Internet access, up from 66% in February 2003. "In
just a handful of years, online access has managed to gain the type of
traction that took other mediums decades to achieve," said Kenneth Cassar,
director of strategic analysis at Nielsen/NetRatings. [Editor's note:
measuring "households equipped with a fixed-line phone" misses at least 6%
of US households.]
[SOURCE: Reuters]
http://news.com.com/2100-1025-5175747.html?tag=cd_top

WHAT'S ON?
Price and speed may be old hat in the battle to gain broadband
subscribers... the new battleground is content. Broadband providers are
moving to add features like music, games, news and movies to their
broadband offerings. The trend is also towards personalization including
personal portals that allow users to track stocks, check the weather and
get updates on local high school sports. A Yankee Group survey last year
found that only 10% of broadband users said they would switch providers for
better content. "But as content services evolve, that percentage is going
to grow," says Patrick Mahoney, a Yankee Group analyst.
[SOURCE: Wall Street Journal, AUTHOR: Peter Grant at peter.grant( at )wsj.com]
http://online.wsj.com/article/0,,SB107938781235155887,00.html?mod=e%2Dco...
(requires subscription)

AOL SAYS IT SEES SHARP DECLINE IN SPAM
Since February 20, America Online has seen a 27% decrease in the amount of
spam entering its network. Spammers attempted to send 2.6 billion messages
to AOL members on Feb. 20. That figure declined steadily and reached 1.9
billion on March 17, the company announced Friday.
[SOURCE: Reuters, AUTHOR: Andy Sullivan]
http://www.reuters.com/newsArticle.jhtml;jsessionid=APJAV0CJKGASMCRBAEKS...

WEB USERS THWART SITES' EFFORTS TO COLLECT PERSONAL INFORMATION
More and more web sites are asking visitors to register their personal
information like location, age, gender and occupation so the sites can sell
their audience to advertisers who want to target segments of society. But
web surfers are fighting back by registering false information. People are
worried about their personal information being sold to potential spammers
or stolen from a site's databank.
[SOURCE: Wall Street Journal, AUTHOR: Carl Bialik at carl.bialik( at )wsj.com]
http://online.wsj.com/article/0,,SB107901688126152593,00.html?mod=mm%5Fm...
(requires subscription)

PUBLICATION: WHAT EVERY CITIZEN SHOULD KNOW ABOUT DIGITAL RIGHTS MANAGEMENT
Public Knowledge has published a comprehensive resource that makes
understandable for everyone the increasingly complex and highly technical
issue of digital rights management. Digital Rights Management (DRM) is the
term applied to technologies that prevent you from using a copyrighted
digital work beyond the degree to which the copyright owner wishes to allow
you to use it. The technologies can be applied to digital movies,
television programs, books or music. The 40-page primer, "What Every
Citizen Should Know About DRM, a.k.a. Digital Rights Management," was
written by Mike Godwin, senior technology counsel at Public
Knowledge. Godwin is a veteran of Internet law, and the author of "Cyber
Rights: Defending Free Speech in the Digital Age" (MIT Press, 2003). "You
should care [about DRM] because you have something personal at stake in
both the balances built into our copyright law, and in the technologies,
such as personal computers and the Internet, that might be restricted or
controlled in order to protect copyright interests," Godwin writes in the
publication. The primer, produced in cooperation with the New America
Foundation, has chapters on DRM and its relationship to copyright law; a
technical explanation of how DRM works; a discussion whether DRM should be
imposed by government; and the potential threats posed by DRM not only to
copyrighted content, but to the technical design of the Internet. In a
concluding essay, Godwin argues for minimal government regulation of DRM,
and for a DRM policy that includes a strong commitment to promoting and
preserving the public domain.
[SOURCE: Public Knowledge]
http://www.publicknowledge.org/content/overviews/citizens-guide-to-drm/view

E-COMMERCE REPORT: WEB RADIO SAID TO BE READY FOR ADS
The Internet radio industry believes it is about to turn a corner; it knows
this because it is starting to get the attention of advertisers. During the
course of a week, some 20 million Americans will tune into a webcast; 39
million Americans will do so a month. The United States Copyright Office
has also settled on royalty fees webcasters pay to the recording industry.
[SOURCE: New York Times, AUTHOR: Bob Tedeschi]
http://www.nytimes.com/2004/03/22/technology/22ecom.html
(requires registration)

CONF RECAP: CAN MEDIA ARTISTS SURVIVE MEDIA CONCENTRATION?
At CCVM's conference on March 13, prominent public interest advocates,
regulators, legislators, and media artists debated the future of not only
media artists in a world dominated by a few giant media conglomerates, but
our nation's democracy and culture. See URL below for more on the conference.
[SOURCE: Center for Creative Voices in Media]
http://www.creativevoices.us/php-bin/news/showArticle.php?id=77&PHPSESSI...

MOBILE INDUSTRY FOCUSES ON FIXING BASICS
The Cellular Telecommunications & Internet Association (CTIA) trade show
begins today in Hotlanta, Georgia. The industry is attempting to fix common
problems like dropped calls and fuzzy connections, but is eyeing a future
of high-speed Internet connections. The industry is halfway into a
five-year, multibillion dollar upgrade to video and Internet networks.
Speakers at the show will include Cisco's John Chambers and Sun's Scott
McNealy.
[SOURCE: Reuters, AUTHOR: Eric Auchard]
http://www.reuters.com/newsArticle.jhtml;jsessionid=1QMMI5XVWA1VACRBAEOC...)

Also see:
IN THE HALL AS A LOBBYIST AFTER TIME IN THE HOUSE
Hall of Fame wide receiver, former Congressman and now chief executive of
the Cellular Telecommunications and Internet Association, met Steve Largent
in this "people piece."
[SOURCE: New York Times, AUTHOR: Matt Richtel]
http://www.nytimes.com/2004/03/22/business/22largent.html
(requires registration)
--------------------------------------------------------------

Benton's Communication-related Headlines for 3/19/04

Communications-related Headlines is a free online news summary service =
provided by the Benton Foundation (www.benton.org). Posted Monday =
through Friday, this service provides updates on important industry =
developments, policy issues, and other related news events. Headlines =
are compiled this week by Norris Dickard (norris( at )benton.org) -- we =
welcome your comments.

MICROSOFT
Microsoft Bid to EU Fails
MEDIA
Friday Night Film Club: A NetClick Away
Center for Creative Voices Conference Recap
FCC
FCC Finally Rules on F-Word, Other Indecencies
CONGRESS
Satellite Hearing Materials Online
MICROSOFT
MICROSOFT BID TO EU FAILS
EU regulators announced settlement talks with Microsoft collapsed; =
leaving it near certain an antitrust ruling will be issued against the =
company. The ruling could limit Microsoft's ability to add new features =
to its software in one of the largest and wealthiest markets in the =
world, where the company generates about a third of its $11 billion in =
annual global sales from Windows. While the concerns of media player =
competitors were at the core of the case, some industry analysts argue =
that Europe's proposed remedies might have a greater effect on future =
software products than on the market for media players.
[SOURCE: Washington Post, AUTHOR: John Burgess]
http://www.washingtonpost.com/wp-dyn/articles/A6364-2004Mar18.html
(requires registration)
[SOURCE: New York Times, AUTHOR: Paul Meller and John Markoff]
http://www.nytimes.com/2004/03/19/technology/19SOFT.html
(requires registration)
MEDIA=20
FRIDAY NIGHT FILM CLUB: A NETCLICK AWAY
Have you heard of film director Mario Bava? Upstart company, Netflix, =
and its proprietary software might help make the connection for you. =
Netflix, founded in 1998, is an online movie-rental company "that could =
be described as the anti-Blockbuster." It distributes only DVD's for =
which customers pay a flat monthly fee of $19.95 to rent an unlimited =
number of films -- keeping three at a time. According to the author, =
"{Netflix} turned me into a different kind of movie watcher. Culturally, =
I am no longer the same person. The flat-fee system elicits two =
responses: more frequent renting, and more adventurous renting." Other =
companies, including WalMart, are seeking to get in on the game and =
undercut NetFlix, but the company has niche offerings like Netflix =
First, where a small number of independent films are made available =
exclusively to subscribers. And who is Mario Bava? Why none other than =
the seminal influence on Dario Argento, a cult Italian horrormeister. =
But, you knew that.
[SOURCE: New York Times, AUTHOR: Paul Grimes]
http://www.nytimes.com/2004/03/19/movies/19NETF.html
CENTER FOR CREATIVE VOICES CONFERENCE RECAP
Speaking of independent production and artists, the Center for Creative =
Voices posted on their website materials, including press articles, =
related to their media policy conference held in L.A. last weekend. =
Executive Director Jonathan Rintels opened the conference by asking, "if =
what brought together so many prominent representatives of the public =
interest with so many prominent representatives of America's media =
creators, for perhaps the first time, is not the question of whether =
America's media artists can survive media consolidation, but whether =
America's democracy and culture can?" Declared Common Cause President =
Chellie Pingree, "Everyone has something to be mad about."=20
[SOURCE: Center for Creative Voices]
http://www.creativevoices.us/php-bin/news/showArticle.php?id=3D76
FCC=20

FCC FINALLY RULES ON F-WORD, OTHER INDECENCIES
The Federal Communications Commission issued an Order concluding that =
the live broadcast of the phrase "f***ing brilliant," spoken by Bono of =
U2 during the 2003 Golden Globe Awards, violated the statutory =
prohibitions on indecency and profanity. The agency also fined radio =
shock jock Howard Stern $27,500 for a show aired on a Detroit radio =
station. Mr. Stern works for Infinity Broadcasting, a unit of Viacom, =
Inc. Another Infinity station -- WLLD-FM, in Holmes Beach, Fla. -- was =
fined $7,000 for violating the commission's indecency rules, as was a =
subsidiary of Clear Channel Communications Inc.
[SOURCE: Wall Street Journal, AUTHOR: Joe Flint]
http://online.wsj.com/article/0,,SB107965150517659677,00.html?mod=3DINDU=
STRY
(requires subscription)
[SOURCE: FCC]
http://www.fcc.gov/

CONGRESS
Testimony, the archived web cast, and related materials are now online =
for the March 10, House Commerce Committee, Subcommittee on =
Telecommunications and the Internet oversight hearing on the Satellite =
Home Viewer Improvement Act. Try repeating that as a tongue twister.
[SOURCE: House of Representatives Commerce Committee]
http://energycommerce.house.gov/108/Hearings/03102004hearing1227/hearing.=
htm#List =
http://energycommerce.house.gov/108/Hearings/03102004hearing1227/hearing=
.htm
...And, I'm outta here. Kevin Taglang will return as editor on Monday. =
Have a good weekend, Norris
--------------------------------------------------------------

Benton's Communications-related Headlines for 3/18/04

Communications-related Headlines is a free online news summary service =
provided by the Benton Foundation (www.benton.org). Posted Monday =
through Friday, this service provides updates on important industry =
developments, policy issues, and other related news events. Headlines =
are compiled this week by Norris Dickard (norris( at )benton.org) -- we =
welcome your comments.
DTV
TiVo, I Love Thee
WIRELESS
Wifi for fee Big Chill; EV-DO Next Big Thing?
INTERNET
Can-Spam Law Not Curbing Spam
TELEPHONY
FCC Order Meant to Improve Long Distance Competition
DTV=20
TIVO, I LOVE THEE
Since TiVo's intro in 1999, the digital video recorders have attracted a =
growing base of fans claiming the devices have altered more than just =
their viewing habits. TiVo, they say, has changed their lives. The =
recorders are also available from ReplayTV, Dish Network and some cable =
providers, but it is the TiVo name that has become synonymous with the =
technology. It is actually used as a verb, to TiVo. An empowered parent =
likes the gadget and referenced her young son. "He doesn't know about =
the popular toys or junk food, because he doesn't watch live TV," a Ms. =
Silberman said. "We record the wholesome shows that we want him to see, =
and that is what is available for him. Now that he isn't sitting in =
front of the TV all the time, he's watching less."=20
[SOURCE: New York Times, AUTHOR: ]
http://www.nytimes.com/2004/03/18/technology/circuits/18tivo.html?8dpc
(requires registration)

WIRELESS
WIFI FOR FEE BIG CHILL; EV-DO NEXT BIG THING?
Fee-based Wi-Fi hot spots have so far failed to become tech's next big =
thing. Many analysts believe it is because the connection charges are =
high, the services don't offer ubiquitous coverage and because of a =
growing number of free wireless connections. In a related development, =
Verizon Wireless is hoping a new technology, called EV-DO, and which =
stands for "Evolution Data Optimized," will be the next big thing, and =
help the company generate new revenue by providing a longer, wider range =
coverage of wireless access to the Web.
[SOURCE: Wall Street Journal, AUTHOR: Scott Thurm, David Pringle and =
Evan Ramstad]=20
http://online.wsj.com/article/0,,SB107956780465958560,00.html?mod=3Dtele=
communications%5Fprimary%5Fhs

[SOURCE: Wall Street Journal, AUTHOR: Alamar Latrour and Jesse Drucker]=20
http://online.wsj.com/article/0,,SB107956799859558570,00.html?mod=3Dtele=
communications%5Fprimary%5Fhs
(requires subscription)

INTERNET
CAN-SPAM LAW NOT CURBING SPAM
A new federal anti-spam law (Can-Spam) has done little to decrease the =
amount of junk e-mail coming into Americans' in-boxes, according to a =
survey released today by the Pew Internet & American Life Project. It =
found the mounting spam problem has caused nearly 30 percent of =
respondents to reduce their use of e-mail. "This is the first reading on =
the effect of Can-Spam which was meant to help begin solving this =
problem," said Pew Internet & American Life Project Director Lee Rainie. =
"It's still early in the life of the law obviously, but if in the early =
days the bad guys seem to be getting the upper hand from the good guys, =
that's not good."=20
[SOURCE: Washington Post, AUTHOR: Robert MacMillan]
http://www.washingtonpost.com/wp-dyn/articles/A2279-2004Mar17.html
(requires registration)
Full Report is at:
http://www.pewinternet.org/reports/toc.asp?Report=3D116
TELEPHONY
FCC ORDER MEANT TO IMROVE LONG DISTANCE COMPETITION
The FCC today announced the release of an order meant to expand long =
distance competition. It is meant to improve telephone service for =
consumers by eliminating certain of the FCC's "operate independently" =
rules and allows the integration of certain local and long distance =
operations. The FCC explains in their press release: "Permitting the =
sharing of these limited internal functions that BOCs and their long =
distance affiliates formerly had to separately perform will provide =
efficiency gains and should translate to savings of millions of dollars =
in yearly operational costs that likely will be passed on to the BOCs' =
long distance consumers." BOC =3D Bell Operating Company. The "operate =
independently" rules were adopted in 1996 by the FCC to implement =
section 272 of the Telecommunications Act's separate affiliate =
requirements.=20
[SOURCE: FCC]
http://www.fcc.gov/

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