April 2004

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

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

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

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

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

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

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

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

LEGISLATION UPDATE

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

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

TELECOM POLICY

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

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

BROADCASTING

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

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

PAY-PER SERVICES

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

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

MEDIA POLICY REFORM

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

PERSONALS

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

* After five years at the helm of the Association of Independent Video and
Filmmakers as its Executive Director, Elizabeth Peters leaves us to pursue
other endeavors.
--------------------------------------------------------------
Communications-related Headlines is a free online news summary service
provided by the Benton Foundation (www.benton.org). Posted Monday through
Friday, this service provides updates on important industry developments,
policy issues, and other related news events. Headlines are compiled by
Kevin Taglang (headlines( at )benton.org) -- we welcome your comments.
--------------------------------------------------------------

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

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

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

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

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

POLITICS & BROADBAND

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

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

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

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

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

CABLE

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

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

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

QUICKLY

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

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

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

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

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

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

BROADCASTING
F-Word Fight Isn't Over Fei, Fi, Fo or Fum
Howard's End
Crackdown: The FCC's Battle Against Indecency
Broadcast Networks Join to Battle Cable

QUICK HITS
Time Warner Lets Road Runner, AOL Cooperate
California Votes Against Diebold
EU to Step Up Internet Safety for Children
Police Seize Computers in Global Piracy Crackdown
DTV Coalition Pushes Satellite HDTV

BOOK REVIEWS
The Problem of the Media: U.S. Communication Politics in the Twenty-First
Century
The Creation of the Media

BROADCASTING

F-WORD FIGHT ISN'T OVER FEI, FI, FO OR FUM
Why is there so much indecency in American media today? Henninger argues,
"Having reached the pot of mud at the end of TV's lucrative rainbow,
desperate writers and producers are doing toilet humor for laughs and lots
of sex to keep viewers' hands off [TV] remotes." Broadcast and cable
networks slip "f-words and f-scenes" to hold viewers attention and instead
of creating investing in quality content to retain audiences. Henninger
concludes: As to the "decency" police, the very notion is quaint. Decency
died years ago and isn't coming back. The standards of the American people
have been so beaten down that no public groundswell is likely unless
something is really over the top. The argument now is over a social
consensus on acceptable in-decency. Not being able to say "f------
brilliant" in front of 30 million people is a small price to pay to keep
the gravy trains running.
[SOURCE: Wall Street Journal, AUTHOR: Daniel Henninger]
http://online.wsj.com/article/0,,SB108267616281391409,00.html?mod=todays...
(requires subscription)

HOWARD'S END
This editorial asks 'Why all the fuss over indecency?' Because "members of
Congress understand the American public has had it with the increasing
coarsening of our television and radio." Because telling people to just
turn off what they don't like is not a sufficient answer. Because implicit
in that flip advice is the "arrogant assumption that people getting rich
off this garbage have no responsibility for what they put out." The reality
is that indecency, once "the exclusive province of seedy men in trench
coats operating in the outskirts of town," is now big business with
commercial backing. There ought to be real business consequences for what
they are doing, the editorial concludes."
[SOURCE: Wall Street Journal, AUTHOR: Editorial Staff]
http://online.wsj.com/article/0,,SB108267587597491391,00.html?mod=todays...
(requires subscription)

CRACKDOWN: THE FCC'S BATTLE AGAINST INDECENCY
For those with access to the Wall Street Journal online, an interactive
overview of the indecency debate and links to the artists and material
under fire.
[SOURCE: Wall Street Journal]
http://online.wsj.com/documents/info-fcc04.html?printVersion=true
(requires subscription)

BROADCAST NETWORKS JOIN TO BATTLE CABLE
Since advertising drives broadcast and cable TV industries, here's an
article about how broadcast networks are teaming up to win a greater share
of "upfront" ad sales next month. Jon Nesvig, president for sales at Fox,
which is majority owned by the News Corporation, said, "This is the time,
with all of us in broadcast TV taking the brunt of the charges, whether
it's from cable guys or syndicators or other people, to tell our side of
the story." Broadcasters' message is that even the top rated cable networks
come no where close to delivering an audience of even poorly-rated network
programming. There's also new pressure from ad agencies and marketers to
slow the rate of soaring prices for ad time. Advertisers are meeting
Thursday to discuss ways to change the network upfront sales process that
could ease pressure to pay more for ads.
[SOURCE: New York Times, AUTHOR: Nat Ives]
http://www.nytimes.com/2004/04/23/business/media/23adco.html
(requires registration)

QUICK HITS

TIME WARNER LETS ROAD RUNNER, AOL COOPERATE
Is this what Open Network advocates are calling for. Parent company Time
Warner has decided that it is better that high-speed Internet service Road
Runner not compete with America Online. AOL now will promote to its
subscribers Road Runner's high-speed Internet connections, while Road
Runner will offer its customers a chance to sample many of AOL's high-speed
offerings. Each will win commissions for sales they generate for the other.
They will also jointly launch a video-on-demand channel, called "My MC,"
which allows viewers to choose from a variety of music-video clips, many of
them from AOL's exclusive archive of interviews and recording sessions with
musicians. "It is mildly positive. It is not a barn burner," said Jupiter
Research analyst David Card in the Washington Post. "The big symbolic thing
would be if there was no such thing as Road Runner, and the AOL Welcome
Screen is what you got if you were a Time Warner high-speed cable subscriber."
[SOURCE: Wall Street Journal, AUTHOR: Julia Angwin at julia.angwin( at )wsj.com ]
http://online.wsj.com/article/0,,SB108267160592591196,00.html?mod=e%2Dco...
(requires subscription)
WP: http://www.washingtonpost.com/wp-dyn/articles/A34986-2004Apr22.html

CALIFORNIA VOTES AGAINST DIEBOLD
California election officials on Thursday recommended banning some Diebold
Election Systems voting machines and referred an investigation into the
company to the attorney general for possible civil and criminal sanctions.
In a second day of hearings, Diebold President Bob Urosevich admitted that
the company's errors had prevented some Californians from voting.
[SOURCE: C-Net|News.com, AUTHOR: Paul Festa]
http://news.com.com/2100-1028_3-5197870.html?tag=nefd.top
See lots more coverage in the San Jose Mercury News
http://www.mercurynews.com/mld/mercurynews/8499874.htm

EU TO STEP UP INTERNET SAFETY FOR CHILDREN
A survey, by EU Safety, Awareness, Facts and Tools, a cross-European
project to promote the safe use of the Internet, found 46% of children in
northern Europe who chat on the Internet say someone has asked to meet them
and that 14% had actually done so. In response, EU communications
ministers are launching a $59.4 million plan to increase the use of
filtering technology and public hotlines to combat illegal Internet content.
[SOURCE: Reuters]
http://www.reuters.com/newsArticle.jhtml;jsessionid=BNCIGKXDQLNEYCRBAEOC...

POLICE SEIZE COMPUTERS IN GLOBAL PIRACY CRACKDOWN
Searches were also conducted in Britain, Germany, France, Israel,
Singapore, Belgium, the Netherlands, Denmark, Hungary, Sweden and 27 US
states resulting in the seizure of 200 computers containing hundreds of
thousands of illegally copied works worth at least $50 million. "We have
moved aggressively to strike at the very core of the international online
piracy world," Attorney General John Ashcroft said. The target was covert
"warez" groups that distribute computer games and other works before they
are officially released. The groups are made up of tech-savvy hackers and
industry insiders.
[SOURCE: Reuters, AUTHOR: Andy Sullivan]
http://www.reuters.com/newsArticle.jhtml;jsessionid=RV41RNGFNKU0SCRBAEKS...
WSJ:
http://online.wsj.com/article/0,,SB108266871383091112,00.html?mod=todays...

DTV COALITION PUSHES SATELLITE HDTV
American's For Taxpayer Reform, Media Access Project, Frontiers of Freedom,
EchoStar, and Public Knowledge have joined to form the Digital Transition
Coalition, working together to push for policies that advance: 1)
availability of network DTV signals nationwide (it suggests satellite
delivery might move things along); 2) return of the analog spectrum by Dec.
31, 2006 and 3) redeployment of some analog spectrum to public safety use
and the rest auctioned no later than Dec. 31, 2007. There's much more
information about the coalition's efforts available at
http://www.iwantmyhdtv.com/iwanthdtv/index.jsp -- you can even learn what
digital TV signals are available in your area.
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
http://www.broadcastingcable.com/article/CA412203?display=Breaking+News
(requires subscription)

BOOK REVIEWS
The Problem of the Media: U.S. Communication Politics in the Twenty-First
Century
THE PROBLEM OF THE MEDIA: U.S. COMMUNICATION POLITICS IN THE TWENTY-FIRST
CENTURY
Robert McChesney's new book identifies and debunks eight myths about the US
media. 1) The media do not matter too much -- they merely reflect reality
rather than shape it. 2) The corporate, commercial media system is
"natural," the intent of the Founding Fathers, and the logical outgrowth of
democracy. 3) Debates concerning media policy in the US have accurately
reflected the range of public opinion and public interests. 4) Commercial
media unquestionably provide the highest quality journalism -- the caliber
of journalism a democracy necessitates for informed self-government. 5) The
news media in the US today have a "left-wing"bias. 6) Commercial media, due
to competitive pressure for profit, "give the people what they want" -- so
the only policy option is to unleash the market. 7) Technologies determine
the nature of media. 8) No alternative to the status quo will improve
matters. McChesney also recaps the efforts in 2003 to stall the FCC's
relaxation of media ownership rules.

THE CREATION OF THE MEDIA
In this sweeping history, Paul Starr shows how politics created our media
world, from the emergence of the first newspapers and postal systems in
early modern Europe and colonial America to the rise of the mass press,
telecommunications, motion pictures, and broadcasting in the twentieth
century. Critical choices about freedom of expression, ownership of media,
the architecture of networks, secrecy, privacy, and intellectual property
have made the modern media as much a political as a technological
invention. The American Revolution, Starr argues, set the United States off
on a path of development in communications that diverged sharply from
patterns in Europe. By the early nineteenth century, when the United States
was neither a world power nor a primary center of scientific discovery, it
was already a leader in postal service, newspapers, and popular journalism,
then in development of telegraph and telephone networks, later in the whole
repertoire of mass media and entertainment. The rise of the media has
become the story of an American ascendancy-and an American dilemma. The
framework of communications established in the United States has proved to
be a source of economic growth, cultural influence, and even military
advantage for the country. But the media have also become a constellation
of power in their own right, upsetting the classical vision of the role of
the press in a democracy. The Creation of the Media not only presents the
media in a new way; it also puts American politics into a new perspective.
(from Amazom.com)
--------------------------------------------------------------
...and we are outta here. Have a great weekend.
--------------------------------------------------------------

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

TELEVISION
Copps, Adelstein Slam Election Coverage
FCC Chairman Powell on Broadcasting
NCTA Responds to Broadcasters on Must Carry Issues
Study Finds More Latinos, Fewer Asians on Prime-time TV
FTC OK's NBC/Universal
PTV Expands Fare Offered on Demand

SPECTRUM
FCC Announces NextWave Settlement Agreement

TELECOM COMPETITION
SBC Proposes a Higher but Uniform Rate for Rivals Using Its Lines

QUICK HITS
CDT Presents Consensus List of Devious Software Practices
FCC "Solutions Summit" on Disability Access Issues
PBS May Start Foundation to Seek Major Gifts
PBS Web Sites Receive Record Number of Webby Award Nominations
Study: Swedes Most 'Digital-Savvy' in Europe
Jail Mail Can Have Web Downloads, Court Rules

TELEVISION

COPPS, ADELSTEIN SLAM ELECTION COVERAGE
In an event organized by the Public Interest, Public Airwaves Coalition
[which includes the Benton Foundation], FCC Commissioners Michael J. Copps
and Jonathan Adelstein took turns endorsing a proposal that broadcasters
provide a minimum of three hours a week of "civic or electoral affairs" on
their primary digital television channel. Commissioner Copps slammed local
stations, charging that their coverage of elections is "just plain
pathetic." Commissioner Adelstein seconded the notion, although altering
the adjective to "pitiful." Commissioner Copps also complained about what
he saw as the FCC's silence on the issue of digital public interest
obligations. "The FCC has a "bad case of lockjaw," he said.
[SOURCE: Broadcasting&Cable, AUTHOR: Steve McClellan]
http://www.broadcastingcable.com/article/CA411871?display=Breaking+News
(requires subscription)

FCC CHAIRMAN POWELL ON BROADCASTING
"Adapt, evolve or die." This was FCC Michael Powell's message to
broadcasters in his keynote speech at the National Association of
Broadcasters convention Tuesday. "Broadcasting is the original mass media.
On the other end, there's a rise of a digital generation that has access to
highly individualized and customized news and information," Chairman Powell
said. Broadcasters compete with cable and satellite services and new
digital media offerings via the Internet, video-on-demand, and wireless and
gaming technologies. The transition to digital TV is supposed to help
broadcasters compete, but if they do not keep pace with new competitors the
government could yank the spectrum licenses or demand fees, Chairman Powell
said.
He also told the audience that the FCC will not be trying to enforce
decency standards on cable programmers before Congress passes legislation
that mandates it. Though Powell may not have the authority to regulate
cable, he suggested he had the inclination. "I don't believe the First
Amendment should change channels when it goes from ch. 7 to ch. 107. I
don't believe it's that arbitrary, but I am not free to disavow that
distinction."
Finally, on the proposed plan the FCC is working on to advance the
transition to digital TV, Chairman Powell said that he has not yet endorsed
the plan, but broadcasters should consider that there could be alternatives
they could like even less. "The law [setting a transition deadline] is
muddy," Chairman Powell said. The issue, he said "is not about being pro-
or anti-broadcast, it's about being pro-public." He warned that government
officials with fees on their radar screens could find themselves desperate
to raise $50 billion to head off a Social Security crisis.
[SOURCE: C-Net|News.com, AUTHOR: Stefanie Olsen]
http://news.com.com/2100-1037-5195961.html?tag=nefd.hed
B&C: Powell Can't Pursue Cable Smut
http://www.broadcastingcable.com/article/CA411729?display=Breaking+News
Powell Says Ferree Plan Isn't 'Last Word'
http://www.broadcastingcable.com/article/CA411722?display=Breaking+News
LATimes: FCC Chief Turns Up Heat on Broadcasters
http://www.latimes.com/business/printedition/la-fi-powell21apr21,1,60388...
Multichannel News: Powell Warns NAB on Spectrum Squatting
http://www.multichannel.com/article/CA411878?display=Breaking+News

NCTA RESPONDS TO BROADCASTERS ON MUST CARRY ISSUES
The National Cable & Telecommunications Association (NCTA) yesterday filed
an ex parte letter with the FCC concerning the digital must carry
proceeding, responding to a series of recent filings by broadcasters on the
digital TV transition and cable's obligations for signal carriage. The
letter states that commercial broadcasters' response to a good-faith effort
by the Commission to address the hard issues of the digital transition is a
distraction to the work at hand. It is a distraction because it focuses on what
they want the government to impose on other industries and their customers,
not on what broadcasters are themselves willing to do. Specifically, their
counterproposal to the Media Bureau is nothing more than a repackaged
version of the so-called "either/or" demands broadcasters put forth last
November. That proposal is the functional equivalent of dual carriage,
unless cable customers were forced to lease digital-to-analog set-top boxes
for the 145 million analog sets in their homes.
See the full text of the letter at the URL below. For additional
information, contact Rob Stoddard or Brian Dietz at 202/775-3629.
[SOURCE: National Cable & Telecommunications Association]
http://www.ncta.com/pdf_files/NCTAExParte.pdf

STUDY FINDS MORE LATINOS, FEWER ASIANS ON PRIME-TIME TV
A new study on race and gender diversity on television has found that,
despite a significant increase in Latino characters on this season's
prime-time TV, Latinos are twice as visible in real life than on
television. The study, "Fall Colors 2003-04: Prime Time Diversity
Report," also found that representations of Asian and Pacific Islander
characters declined, Latino and Middle Eastern characters often were
typecast and Native American characters were absent. In addition, male
characters outnumbered their female counterparts nearly two to one, while
females tended to be younger. While Children Now researchers praised the
progress made by networks in showing more Latino characters, it was
tempered by the prevalence of low-paying jobs those characters were likely
to have compared to other racial groups. Whites, for example, were three
times as likely as Latinos to hold professional occupations such as doctors
or lawyers. And although the overall number was small, Latinos were four
times as likely as characters of other races to portray domestic workers.
"The message prime-time TV sends to kids about the world in which they live
is that some racial groups are privileged, while others are
under-represented or even invisible," said Patti Miller, director of
Children Now's Children & the Media program. "Regrettably, the networks
have not done nearly enough in the past five years to change this skewed
picture."
[SOURCE: Children Now Press Release]
http://www.childrennow.org/newsroom/news-04/pr-04-21-04.cfm
See full report at
http://www.childrennow.org/media/fc2003/fc-2003-highlights.cfm
In a related story...
HISPANIC MARKET DRAWS AD SPENDING
Advertisers are spending more to reach the Hispanic market, but their
investments remain very low, given the growth in population and purchasing
power of the largest U.S. minority, according to a study by the Association
of Hispanic Advertising Agencies. Most companies' Hispanic ad budgets still
fall short of what marketing experts deem adequate to reach the nation's 40
million Latinos, who represent about 14% of the population and have
aggregate disposable income of nearly $700 billion. Indeed, top U.S.
advertisers devoted only 5.1% of their total advertising budget to the
Hispanic market last year, up from 4.6% in 2002, according to the AHAA survey.
[SOURCE: Wall Street Journal, AUTHOR: Miriam Jordan at
miriam.jordan( at )wsj.com ]
http://online.wsj.com/article/0,,SB108251203404088946,00.html?mod=mm%5Fm...
(requires subscription)

FTC OK'S NBC/UNIVERSAL
NBC has gotten Federal Trade Commission approval for its purchase of
Vivendi Universal Entertainment. The new entity will be called NBC
Universal, which officials billed as "one of the world's most profitable
and fastest-growing media and entertainment companies." The FTC did not
require divestitures of any business lines, nor did it insist that NBC
devote any of its prime time lineup to programming not produced by
Universal or other in-house studios, as some public advocates urged.
[SOURCE: Broadcasting&Cable, AUTHOR: Bill McConnell]
http://www.broadcastingcable.com/article/CA411876?display=Breaking+News
(requires subscription)
WP: FTC Approves NBC's Vivendi Universal Deal
http://www.washingtonpost.com/wp-dyn/articles/A28880-2004Apr20.html
USAToday: http://www.usatoday.com/usatonline/20040421/6131690s.htm

PTV EXPANDS FARE OFFERED ON DEMAND
Rather watch The NewsHour after the kids are in bed? The show will be the
first news series to become available through digital cable video-on-demand
(VOD). A package of PBS Kids shows will soon be available to 8 million
homes during a one year test run. The programming will be available free to
cable subscribers. In markets where PBS has already experimented with VOD,
there was no loss in viewership. VOD viewing for kids programing spiked
when the day's children fare went off the air. "Our interest in getting on
VOD is that it's a new platform that consumers seem to really like," said
Kyra McGrath of Philadelphia's WHYY. "We don't know where it's going in the
future, but we want to get our foot in the door as the platform develops."
[SOURCE: Current, AUTHOR: Karen Everhart]
(http://www.current.org/)

SPECTRUM

FCC ANNOUNCES NEXTWAVE SETTLEMENT AGREEMENT
The Federal Communications Commission announced today that the government
has reached an agreement with NextWave Communications, Inc. (NextWave)
regarding NextWave's broadband personal communication service (PCS)
licenses, which have been in dispute since 1996. The proposed deal would
immediately make available for other uses the vast majority of the spectrum
that had been tied up in litigation since NextWave declared bankruptcy in
1998. The government pursued three overarching goals in settling this
case: (i) putting the NextWave spectrum that lay dormant for so long to
active use; (ii) recouping value from NextWave for the U.S. government; and
(iii) facilitating a final resolution to the entire matter within the
context of the Supreme Court's NextWave opinion. Specifically, the
agreement: 1) provides for the immediate return of spectrum licenses that
will account for at least 90% of NextWave's spectrum when licenses already
sold to Cingular Wireless are taken into account; 2) contemplates total
cash recovery (including NextWave's down payment) of $1.6 billion if
anticipated sales occur; 3) results in a total cash and spectrum recovery
of at least $4 billion based on NextWave's original purchase price; 4)
requires additional cash payments to the U.S. Treasury if there is a
dramatic increase in value and sale of the spectrum that NextWave retains;
5) extinguishes any potential claims for damages against the FCC and the
U.S. government; 6) builds in safeguards to ensure prompt and timely
payment by NextWave; and 7) avoids the use of debt instruments, which could
be subject to further default and delay. FCC Chairman Michael Powell said,
"After eight long years, we can finally end the litigation and begin the
innovation. This landmark agreement takes valuable spectrum resources out
of the courts and will put it in the hands of consumers who can finally use
it. Making additional next-generation wireless services available is good
for the economy and good for broadband deployment. Ending one of the most
hotly contended legal battles with a commercial solution that results in
over four billion dollars in value to taxpayers makes this settlement a
success for the American people"
The deal will require approval of the U.S. Bankruptcy Court for the
Southern District of New York.
[SOURCE: FCC]
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-246284A1.doc
See Also:
NYTimes: NextWave Pact With F.C.C. Ends Airwave Dispute
http://www.nytimes.com/2004/04/21/business/21spectrum.html
WSJ coverage
http://online.wsj.com/article/0,,SB108249382699588274,00.html?mod=techno...
WP: FCC Calls Truce With NextWave
http://www.washingtonpost.com/wp-dyn/articles/A29412-2004Apr20.html
USAToday: NextWave to return airwave licenses to FCC for auction
http://www.usatoday.com/usatonline/20040421/6131698s.htm

TELECOM COMPETITION

SBC PROPOSES A HIGHER BUT UNIFORM RATE FOR RIVALS USING ITS LINES
Phone giant SBC yesterday proposed to offer uniform pricing to competitors
who want to use its local phone network. The offer is to last through the
year and the company -- which dominates local phone service in the Midwest,
the Southwest and California -- characterized the offer as an interim deal
aimed at bringing stability to a confusing system of telephone access fees
while telephone companies try to work out more permanent agreements. The
rates are also rising from ~$17 per line in to $22. Competitors, obviously,
don't like the increase. AT&T, for example, said the offer was a 20%
increase "without justification." Blair Levin, a regulatory analyst with
Legg Mason, a financial consulting firm in Washington, said the offers were
unlikely to inspire many deals. He indicated phone rate increases could
have electoral consequences, so look for deals that get past the election
season.
[SOURCE: New York Times, AUTHOR: Matt Richtel]
http://www.nytimes.com/2004/04/21/business/21bell.html
(requires registration)
See Also:
LATimes: Baby Bells Pushing to Keep Lid on Lease Deals
http://www.latimes.com/business/printedition/la-fi-bells21apr21,1,578245...

QUICK HITS

CDT PRESENTS CONSENSUS LIST OF DEVIOUS SOFTWARE PRACTICES
Speaking at the FTC's Workshop on "Spyware," CDT Associate Director Ari
Schwartz presented a consensus list of "Unfair, Deceptive, or Devious
Practices Involving Software" endorsed by a broad coalition of software
companies, Internet service providers, anti-spyware technology vendors, and
consumer groups convened by CDT. Schwartz told the FTC that the consensus
list demonstrates the broad recognition that many "spyware" practices,
which are common today, are already illegal under current law, and he urged
the Commission to step up enforcement.
[SOURCE: Center for Digital Democracy]
http://www.cdt.org/
For more see:
Consumer Software Working Group Examples of Unfair, Deceptive or Devious
Practices Involving Software
http://www.cdt.org/privacy/spyware/20040419cswg.pdf
Policy Post 10.07: CDT, Presenting List of Devious Spyware Practices, Calls
for FTC Action
http://www.cdt.org/publications/pp_10.07.shtml
CDT's Spyware page
http://www.cdt.org/privacy/spyware/
Spyware: What You Don't Know Can Hurt You. The House Subcommittee on
Commerce, Trade and Consumer Protection will hold a hearing April 29
at 10:00 a.m. in 2322 Rayburn House Office Building. This event will be
open to the public and webcast live (audio only).
http://www.benton.org/calendar.htm

FCC "SOLUTIONS SUMMIT" ON DISABILITY ACCESS ISSUES
The FCC will hold a "Solutions Summit" on Friday, May 7, 2004. This
Solutions Summit is the second in a series where government, industry
leaders and stakeholders can discuss creative ways to address policy issues
that arise as communications services move to Internet-Protocol-based
platforms. This meeting will focus on the ways persons with disabilities
access services increasingly based upon IP technologies. The summit is
open to the public, and seating will be available on a first-come,
first-served basis. The FCC is recommending that attendees submit a
pre-registration form. Pre-registration is encouraged, but not
required. The pre-registration form is located at: http://www.fcc.gov/voip/.
For more information about the Solutions Summit, contact Kelly Jones at
202-418-7078 (voice) 202-418-1169 (TTY), or Kelly.Jones( at )fcc.gov (E-mail).
[SOURCE: FCC]
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DA-04-1051A1.doc

PBS MAY START FOUNDATION TO SEEK MAJOR GIFTS
The PBS board has authorized a task force to develop operating principles
for a fundraising foundation which would solicit major gifts for the
service. "We're all of the view that we've got to develop additional
sources of revenue to support the wonderful work of public television,"
said Board Vice Chair Mary Bitterman. The 501(c)(3) foundation would
"complement and not compete with individual station efforts to solicit
major gifts" and work with "the full engagement and knowledge of stations."
[SOURCE: Current, AUTHOR: Karen Everhart]
(http://www.current.org/)

PBS WEB SITES RECEIVE RECORD NUMBER OF WEBBY AWARD NOMINATIONS
PBS-affiliated Web sites received six Webby Award nominations today for the
8th Annual Webby Awards. PBS Web sites nominated are:
PBS.org www.pbs.org (TV category)
PBS Kids www.pbskids.org (Youth category)
Arthur www.pbskids.org/arthur (Youth category)
FRONTLINE World www.pbs.org/frontlineworld (TV category)
Listen Up! www.pbs.org/merrow/listenup (Youth category)
P.O.V. Borders www.pbs.org/pov/borders/index_flash.html (Broadband category)
[SOURCE: PBS]
http://www.pbs.org/
For more info see:
Webby Award nominee press release
http://www.webbyawards.com/main/press/press_releases/pr_042004.html
The complete list of Webby Award nominees
http://www.webbyawards.com/main/webby_awards/nominees.html

STUDY: SWEDES MOST 'DIGITAL-SAVVY' IN EUROPE
According to Jupiter Research's inaugural "Digital Life Index" -- a study
that attempts to rank consumers' digital sophistication across 17 Western
European countries -- the further south you venture, the fewer digital
gadgets, satellite TV dishes and Internet connections there are. "Europe's
constituent countries may be getting closer together economically, but the
lifestyles of its inhabitants remain as diverse as ever. Nowhere is this
clearer than in the consumption of digital technology," said Jupiter
analyst Mark Mulligan. The study counts a variety of factors from Internet
shopping habits to uptake of satellite television and the number of digital
devices and mobile phones among consumers in tabulating its "digital
sophistication index." Sweden, Denmark, Norway and Finland rank highest in
terms of digital sophistication while the Mediterranean countries,
including Greece, Portugal and Italy, score below the Continental average,
Jupiter said.
[SOURCE: Reuters, AUTHOR: Bernhard Warner]
http://www.reuters.com/newsArticle.jhtml;jsessionid=L3LCBWRSMFJ2MCRBAE0C...

JAIL MAIL CAN HAVE WEB DOWNLOADS, COURT RULES
The US 9th Circuit Court of Appeals has upheld a lower court ruling that a
state cannot bar prisoners access from mail that contains downloads from
the Internet. The court granted a permanent statewide injunction against
the ban. "The injunction prohibits banning Internet materials simply
because their source is the Internet," the three-judge panel wrote. "It
does not prohibit restrictions for any legitimate penological or security
reasons. Without violating the injunction, legitimate restrictions could be
adopted by any prison to meet its individual needs, for example page
limitations, or a ban on recipes for pipe-bombs."
[SOURCE: Reuters]
http://www.reuters.com/newsArticle.jhtml;jsessionid=10L3UHBAXDQXICRBAEOC...
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