March 2005

Benton's Communications-related Headlines for 3/31/05

POLICYMAKERS
Martin Staff Changes Cause Discomfort

MEDIA
So Much Media, so Little Attention Span
PTC Targets MTV Advertisers
Some Pay for a TV Service That They Didn't Choose
Flag Foes Justify Day in Court

TELECOM
Qwest Prepares A Revised Offer To Acquire MCI
Vonage may Route 911 call to Congress, FCC

QUICKLY -- What is a =91journalist'?; MGM-Sony Deal Cleared by Europeans;=20
File-Sharing at Work; VentureCapitalTV.com; Why do we tell stories?

POLICYMAKERS

MARTIN STAFF CHANGES CAUSE DISCOMFORT
Apparently, depending who you talk to, new FCC Chairman Kevin Martin is=20
either Attila the Hun or your average new chairman trying to put his mark=20
on the commission he runs. FCC Wireline Chief Jeffrey Carlisle, Wireless=20
Chief John Muleta, Media Chief Kenneth Ferree, Enforcement Chief David=20
Solomon, Consumer & Governmental Affairs Chief Dane Snowden have all=20
departed the Commission since former Chairman Powell announced his=20
resignation. Some FCC staff and observers say these and other staff changes=
=20
are par for the course; others are miffed because they find the moves too=20
abrupt. Chairman Martin has gotten high marks for =93collegiality=94 since=
=20
taking over because he appears to be forging close relationships with other=
=20
commissioners. He attended a Federal Communications Bar Association lunch=20
Monday to hear Commissioner Copps speak (and tell jokes about the=20
Chairman), a gesture many term unusual -- chairmen and other commissioners=
=20
generally don't attend each others=92 speeches. Commissioner Adelstein also=
=20
attended the lunch. Sources said Chairman Martin=92s staff has been meeting=
=20
with other commissioners=92 staffs to learn what sort of information they=20
would like to have about ongoing proceedings, whether they would like it on=
=20
paper or electronically and if they would like more meetings. The=20
=93outreach=94 effort appears to have been =93handled deftly=94 and was=20
=93well-received,=94 an outside source said.
[SOURCE: Communications Daily, AUTHOR: Edie Herman]
(Not available online)

MEDIA

SO MUCH MEDIA, SO LITTLE ATTENTION
As U.S. children are exposed to 8=BD hours of TV, video games, computers and=
=20
other media a day -- often at once -- are they losing the ability to=20
concentrate? Are their developing brains becoming hard-wired to =93multi-tas=
k=20
lite=94 rather than learn the focused critical thinking needed for a=20
democracy? These troubling questions are raised by a Kaiser Family=20
Foundation media study this month, says educational psychologist David=20
Walsh of the National Institute on Media and the Family, a Minneapolis=20
non-profit. Even more troubling is the answer: We don't know, Walsh and=20
other experts in the field say. Bipartisan legislation introduced in the=20
Senate this month would spend $90 million over five years to research how=20
electronic media affect the mental, social, physical and psychological=20
development of children.
[SOURCE: USAToday, AUTHOR: Marilyn Elias]
http://www.usatoday.com/printedition/life/20050331/bl_cover31.art.htm
For information about how TV and other media affect children, and how=20
parents can guide kids in their media use:
http://www.usatoday.com/printedition/life/20050331/bl_cover31_box.art.htm
See also:
http://www.usatoday.com/printedition/life/20050331/bl_cover31_numbers.ar...
m

PTC TARGETS MTV ADVERTISERS
From the home office in Los Angeles, here's the Parent's Television=20
Council's "Top Ten Corporate Sponsors of MTV Sleaze." 10) General Electric=
=20
Co. 9) Foot Locker. 8) Cadbury Schweppes. 7) Hershey Foods. 6)=20
Colgate-Palmolive. 5) Viacom. 4) PepsiCo. 3) Time Warner. 2) Sony. and --=20
drum roll, please -- at #1 Procter & Gamble. Their crime? They are the top=
=20
10 MTV advertisers. PTC sent letters to all 10 advertisers during MTV=20
Spring Break programming in 2004, asking them to justify their patronage of=
=20
the network, which has long been on the PTC's hit list for sex, violence=20
and profanity. "These companies must be held accountable for underwriting=20
this material,=94 said PTC President L. Brent Bozell.
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
http://www.broadcastingcable.com/article/CA514072?display=3DBreaking+New...
ferral=3DSUPP
(free access for Benton's Headlines subscribers)
See PTC's Press Release at:
http://www.parentstv.org/PTC/publications/release/2005/0330.asp

SOME PAY FOR A TV SERVICE THAT THEY DIDN'T CHOOSE
With approximately 85% of American households already paying for some sort=
=20
of television and the remaining 15 percent unlikely to sign up for any=20
service, cable and satellite providers are increasingly chasing each=20
other's customers. Among the hottest battlegrounds now for customers in the=
=20
pay television market are planned communities sprouting up across the Sun=20
Belt and apartments and other multi-unit housing blocks in big cities -=20
basically any development where a homeowners' association or management=20
company charges residents for property upkeep, security and the like. Cable=
=20
and satellite providers, of course, love striking these bulk subscriber=20
deals because with one contract they can capture hundreds and sometimes=20
thousands of customers who generate a steady stream of fees for years.=20
Developers, condo boards and property associations like the deals, too,=20
because they need to work with only one television provider and because the=
=20
deals can offer homeowners significant discounts for their cable service.=20
But for homeowners who do not want paid television programming or would=20
rather spend the money on programming available from another provider, the=
=20
lock-ins amount to a tax.
[SOURCE: New York Times, AUTHOR: Ken Belson]
http://www.nytimes.com/2005/03/31/business/media/31cable.html
(requires registration)

FLAG FOES JUSTIFY DAY IN COURT
Public Knowledge, the American Library Association, and other petitioners=20
have made their case for standing in their challenge to the FCC's decision=
=20
approving the broadcast flag, which would imbed a code in digital=20
broadcasts to prevent them being widely copied and distributed. In=20
Tuesday's brief, Public Knowledge et. al. cited the North Carolina State=20
University Library's Internet distribution of video clips for distance=20
learning as threatened by the flag, as well as American University in=20
Washington, UCLA, and Vanderbilt. All were identified as parties whose=20
educational video operations would be harmed either by restrictions or by=20
the expense of upgrading to flag-compliant equipment. Other harmed parties=
=20
cited included a couple of bloggers who said they would no longer be able=20
to use broadcast clips to annotate their blogs, the marketer of an HDTV=20
tuner card, and a user of the pc-based PVR like device, MythTV, which works=
=20
in concert with a tuner card. MPAA and the FCC now have 10 days to file=20
their response to the new brief.
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
http://www.broadcastingcable.com/article/CA514070?display=3DBreaking+New...
ferral=3DSUPP
(free access for Benton's Headlines subscribers)
For more on the broadcast flag court challenge, see:
http://www.publicknowledge.org/issues/bfcase
PK court brief:
http://www.publicknowledge.org/pdf/pk-bfcase-supplemental-brief.pdf

TELECOM

QWEST PREPARES A REVISED OFFER TO ACQUIRE MCI
Qwest Communications International is preparing to launch a revised bid for=
=20
MCI, which this week agreed for a second time to be bought by Verizon=20
Communications after Verizon sweetened its offer to roughly $7.5 billion.
[SOURCE: Wall Street Journal, AUTHOR: Jesse Drucker jesse.drucker( at )wsj.com,=
=20
Almar Latour almar.latour( at )wsj.com and David Luhnow david.luhnow( at )wsj.com ]
http://online.wsj.com/article/0,,SB111221125234193348,00.html?mod=3Dtoda...
s_page_one
(requires subscription)
WP: http://www.washingtonpost.com/wp-dyn/articles/A14486-2005Mar30.html
NYT: http://www.nytimes.com/2005/03/31/business/31phone.html
LATimes:=20
http://www.latimes.com/business/printedition/la-fi-qwest31mar31,1,721047...
ory?coll=3Dla-headlines-pe-business

VONAGE MAY ROUTE 911 CALL TO CONGRESS, FCC
Internet phone provider Vonage may ask Congress and the Federal=20
Communications Commission to help it solve problems with SBC over=20
subscriber access to the 911 emergency call network. SBC's decision not to=
=20
work more closely with Vonage, made public Wednesday, may delay efforts to=
=20
fix the problem that keeps a majority of U.S. Net phone providers from=20
successfully routing 911 calls to the right emergency calling center. Many=
=20
of those 911 calls are instead sent to non-emergency operators, with no=20
guarantee the calls will reach dispatch centers close enough to provide the=
=20
most effective help.
[SOURCE: C-Net|News.com, AUTHOR: Ben Charny]
http://news.com.com/Vonage+may+route+911+call+to+Congress%2C+FCC/2100-73...
-5647706.html?tag=3Dnefd.top

QUICKLY

WHAT IS A JOURNALIST?
[Commentary] Journalism today operates under a kind of feudal system. Just=
=20
as serfs once provided their labor to the lord of the castle in exchange=20
for protection, reporters today rely on the corporations that hire them to=
=20
give them the legal clout to take risks in digging out the truth. Bloggers=
=20
and freelance book authors don't have this protection. As the power to=20
disperse information moves from castle to cottage, bloggers need to band=20
together, find patrons to protect them, or both. Bloggers are often=20
compared with the lonely pamphleteers who flourished in the 15th century=20
when printing with movable type was a new technology. Professional=20
associations and support groups will make them less lonely.
[SOURCE: USAToday, AUTHOR: Philip Meyer, author of The Vanishing Newspaper]
http://www.usatoday.com/printedition/news/20050331/oplede31.art.htm

MGM-SONY DEAL CLEARED BY EUROPEANS
Metro-Goldwyn-Mayer Inc. said Wednesday that the European Commission had=20
approved the Hollywood studio's nearly $3-billion sale to a consortium led=
=20
by Sony Corp. The deal received U.S. antitrust regulatory approval when the=
=20
required waiting period expired without objections in December. The studio=
=20
said it expected that the deal would close before mid-April, subject to=20
receipt of the necessary financing and other closing conditions. Sony led=20
an investor group that included Providence Equity Partners, Texas Pacific=20
Group, cable TV operator Comcast Corp. and Credit Suisse Group's DLJ=20
Merchant Banking.
[SOURCE: Los Angeles Times]
http://www.latimes.com/business/printedition/la-fi-mgm31mar31,1,7264434....
y?coll=3Dla-headlines-pe-business
(requires registration)
Also in --
B&C:=20
http://www.broadcastingcable.com/article/CA513929?display=3DBreaking+New...
ferral=3DSUPP
(free access for Benton's Headlines subscribers)

FILE-SHARING AN OUT-OF-OFFICE EXPERIENCE
Does file sharing have anything to do with anything but steal-- um --=20
sharing music files? Yes, yes. See the URL below.
[SOURCE: Washington Post, AUTHOR: Leslie Walker]
http://www.washingtonpost.com/wp-dyn/articles/A14490-2005Mar30.html
(requires registration)

VENTURE CAPITAL PITCHES GOING THE VIDEO ROUT
Note the end of April for the launch of VentureCapitalTV.com, an Internet=20
site with streaming video broadcasts of entrepreneurs giving their=20
quick-hit "elevator" pitches alongside related material.
[SOURCE: Washington Post, AUTHOR: Ellen McCarthy]
http://www.washingtonpost.com/wp-dyn/articles/A14491-2005Mar30.html
(requires registration)

CRACKING THE STORY CODE
[Commentary] One of the greatest mysteries in our lives lies so close=20
beneath our noses that we don't even recognize it to be a mystery. Why do=20
we tell stories? Why has evolution given us the ability to conjure up these=
=20
sequences of imaginary happenings, on which, through movies, novels, plays,=
=20
TV soaps and comic strips, we spend so much of our lives?
[SOURCE: Los Angeles Times, AUTHOR: Christopher Booker, author of The=20
Seven Basic Plots: Why We Tell Stories]
http://www.latimes.com/news/printedition/opinion/la-oe-booker31mar31,1,4...
62.story?coll=3Dla-news-comment
(requires registration)
--------------------------------------------------------------
Communications-related Headlines is a free online news summary service=20
provided by the Benton Foundation (www.benton.org). Posted Monday through=20
Friday, this service provides updates on important industry developments,=20
policy issues, and other related news events. While the summaries are=20
factually accurate, their often informal tone does not always represent the=
=20
tone of the original articles. Headlines are compiled by Kevin Taglang=20
(headlines( at )benton.org) -- we welcome your comments.
--------------------------------------------------------------

Benton's Communications-related Headlines for 3/30/05

AT THE SUPREME COURT
Supreme Court Scrutinizes Regulatory Issues in 'Brand X'
Supreme Court Hears Grokster Case; Pundits Predict Narrow Decision

CONTENT
Bob and Barney, With a Few Words From Sponsors
Every Nook and Cranny: The Dangerous Spread of Commercialized Culture
FCC and GOP May Over Reach If They Go After Cable TV
Dow Jones Executive Foresees More Paid Web Sites

SPECTRUM
Dolan to FCC: Block Deal with EchoStar
Spectrum Needs of Emergency Response Providers
Two Upstarts Vie For Dominance In Satellite Radio

TELECOM
MCI Formally Spurns Revised Qwest Offer, Will Stay with Verizon
NASUCA Appeals FCC Billing Rules

QUICKLY -- Energy Efficient DTV; We're at WISPCON VII, Commissioner;
Product Place in Media 2005

AT THE SUPREME COURT

SUPREME COURT SCRUTINIZES REGULATORY ISSUES IN 'BRAND X'
In the Brand X cable modem case hearing at the Supreme Court yesterday,
Justices asked about how the FCC defines an information service. "The
justices appeared willing to grapple with the substantive issue themselves
rather than sending the case to the lower court," said a Legg Mason
analysis. "Based on oral argument, we believe the Supreme Court will likely
side with cable and Bell companies seeking a 'bottom up' approach to
regulating" -- putting the burden on proponents of regulation. But ISPs
have a fighting chance to get the Court to side with them on their "top
down" approach to deregulating -- shifting the burden, Legg Mason said. The
Court is expect to make its decision in June.
[SOURCE: Communications Daily, AUTHOR: Anne Veigle]
(Not available online)
Links to coverage --
Reuters:
http://www.reuters.com/newsArticle.jhtml?type=internetNews&storyID=8028212
B&C:
http://www.broadcastingcable.com/article/CA513835?display=Breaking+News&...
MCN:
http://www.multichannel.com/article/CA513740.html?display=Breaking+News&...
WP: http://www.washingtonpost.com/wp-dyn/articles/A11429-2005Mar29.html
USAToday:
http://www.usatoday.com/printedition/money/20050330/3b_broadband_30.art.htm
News.com (op-ed):
http://news.com.com/Is+an+open+Internet+a+doomed+concept/2010-1034_3-564...

SUPREME COURT HEARS GROKSTER CASE; PUNDITS PREDICT NARROW DECISION
Tuesday was a busy day for the Supreme Court. Justices expressed concerns
over the impact on technological innovation of holding file sharing firms
liable for illegal copying done using their programs. During oral argument
in MGM v. Grokster, the Justices engaged in brisk exchanges with attorneys
for both sides, treading cautiously on the Sony/VCR standard set by the
High Court in a close decision over two decades ago. Members of both camps
agreed the justices asked the questions needed to rule on whether
peer-to-peer (P2P) companies should be subject to secondary liability for
copyright infringement by their users. The decision is expected before the
end of the Supreme Court session in June.
[SOURCE: Communications Daily, AUTHOR: Andrew Noyes]
(Not available online)
Links to coverage --
Reuters:
http://www.reuters.com/newsArticle.jhtml?type=internetNews&storyID=8026655
News.com:
http://news.com.com/Supreme+Court+takes+hard+look+at+P2P/2100-1028_3-564...
B&C:
http://www.broadcastingcable.com/article/CA513842?display=Breaking+News&...
NYTimes: http://www.nytimes.com/2005/03/30/technology/30bizcourt.html
WSJ:
http://online.wsj.com/article/0,,SB111211785362792087,00.html?mod=todays...
WP: http://www.washingtonpost.com/wp-dyn/articles/A8684-2005Mar29.html
WP (Editorial):
http://www.washingtonpost.com/wp-dyn/articles/A11315-2005Mar29.html
USAToday:
http://www.usatoday.com/printedition/money/20050330/3b_fileshare_30.art.htm
(Editorial):
http://www.usatoday.com/printedition/news/20050330/edit30.art.htm
(Op-ed)
http://www.usatoday.com/printedition/news/20050330/oppose30.art.htm
LATimes:
http://www.latimes.com/business/printedition/la-fi-scotus30mar30,1,43303...
(Op-ed):
http://www.latimes.com/news/printedition/opinion/la-oe-anderson30mar30,1...
(Editorial):http://www.latimes.com/news/printedition/opinion/la-ed-justices30mar30,1...

CONTENT

BOB AND BARNEY, WITH A FEW WORDS FROM SPONSORS
On Monday Comcast is to announce the details of its new 24-hour digital
cable channel for preschoolers, which will feature Elmo, Big Bird, Barney -
and commercials. PBS not only approves, but is a partner: the channel's
co-owners are PBS, Sesame Workshop and HIT Entertainment, producer of
"Barney and Friends" and "Bob the Builder." "I don't like pitching
products to young children and I never have," said Joan Ganz Cooney, a
co-founder of Children's Television Workshop (now Sesame Workshop) and the
chairwoman of the executive committee of its board. "But to some degree
that is nostalgia for a time that is past. The whole society, the whole
business is so commercialized, even public television. This is another way
of getting PBS's excellent programming to children." The distinction
between public and commercial television has become increasingly ephemeral
in the last decade as traditional underwriter announcements have taken on
the trappings of regular advertising. The merchandizing of popular
characters like Barney and Elmo is big business. Meanwhile, technology has
upended traditional ideas of what people watch and when.
[SOURCE: New York Times, AUTHOR: Julie Salmon]
http://www.nytimes.com/2005/03/30/arts/television/30pbs.html?
(requires registration)

EVERY NOOK AND CRANNY: THE DANGEROUS SPREAD OF COMMERCIALIZED CULTURE
Advertisers have long relied on 30-second TV spots to deliver messages to
mass audiences. During the 1990s, the impact of these ads began to drop
off, in part because viewers simply clicked to different programs during
ads. In response, many advertisers began to place ads elsewhere, leading to
?ad creep? -- the spread of ads throughout social space and cultural
institutions.
[SOURCE: Multinational Monitor (via Media Savvy), AUTHOR: Gary Ruskin and
Juliet Schor]
http://www.multinationalmonitor.org/mm2005/012005/ruskin.html

FCC AND GOP MAY OVER REACH IF THEY GO AFTER CABLE TV
[Commentary] The FCC and prominent Republicans seem interested in
regulating decency on cable TV the way they do on the broadcast networks.
It's an interesting prospect. But one that could bite them at the polls if
they continue to misread the public. Consumers of all political stripes
don't like it when government removes choices from them.
[SOURCE: BusinessWeek, AUTHOR: David Kiley]
http://www.businessweek.com/the_thread/brandnewday/archives/00000052.htm
Also see (thanks to Media Savvy)--
* THE COMING CONTENT WARS
[Commentary] "Reasonable, mature, reflective and democratic. Ideally, these
should be the hallmarks of our media, but with people like [Brent] Bozell
and [FCC Chairman Kevin] Martin uninterested in allowing discerning
citizens to make their own choices, and politicians interested in scoring
cheap points to "protect" us from ourselves, there's a real danger that we
will get merely the media we're allowed, and not the one we deserve."
[SOURCE: CJR Daily, AUTHOR: Paul McLeary]
http://www.cjrdaily.org/archives/001403.asp
* CLEANUP CRUSADE COULD CENSOR CONTROVERSY, TOO
[Commenary] One of the signposts of America's cultural divide is the
renewed insistence that TV and radio clean up their tawdry acts, or else.
But making the "or else" too extreme will do more than clean up the
airwaves, it will inevitably lead to so much self-censorship that anything
seriously controversial may also disappear, claims this Detroit Free Press
editorial.
[SOURCE: Detroit Free Press, AUTHOR: Editorial Staff]
http://www.freep.com/voices/editorials/eindecency28e_20050328.htm

DOW JONES EXECUTIVE FORESEES MORE PAID WEB SITES
Gordon Crovitz, president of electronic publishing at Dow Jones, predicts
that more publishers likely will try to wean readers off free Internet
versions of their newspapers by starting to charge online subscription
fees. Charging for news that appears in print -- and then giving it away
over the Web -- is "an unsustainable business model," he says.
[SOURCE: Reuters, AUTHOR: Martha Graybow]
http://www.reuters.com/newsArticle.jhtml?type=internetNews&storyID=8026971

SPECTRUM

DOLAN TO FCC: BLOCK DEAL WITH ECHOSTAR
Cablevision Systems chairman Charles F. Dolan and a group called The
Association of Consumers to Preserve and Promote DBS Competition asked the
Federal Communications Commission to reject the transfer of
direct-broadcast satellite spectrum from Rainbow DBS to EchoStar
Communications. They argue that EchoStar's acquisition of the satellite
assets "would undermine" competition in the pay TV market and clash with
"well-established" FCC policies of "fostering competition and new entry
among DBS service providers." Dolan's filing said the EchoStar deal would
harm competition because it "would result in a loss of service to the
approximately 40,000 existing subscribers to the Voom DBS service," which
is in the process of raising funds to purchase the Rainbow assets.
[SOURCE: Multichannel News, AUTHOR: Ted Hearn]
http://www.multichannel.com/article/CA513846.html?display=Breaking+News&...
(free access for Benton's Headlines subscribers)
See also --
* Dolan Pledges $400 Million to Voom
http://online.wsj.com/article/0,,SB111214427178692679,00.html?mod=todays...

SPECTRUM NEEDS OF EMERGENCY RESPONSE PROVIDERS
On December 17, 2004, the President signed the Intelligence Reform and
Terrorism Prevention Act of 2004 ("Intelligence Reform Act" or "Act") into
law to reform the United States intelligence community and
intelligence-related activities. Title VII of the Act implements certain
recommendations of the National Commission on Terrorist Attacks Upon the
United States, including a number of communications-related provisions,
particularly with respect to use of the electromagnetic spectrum by
Federal, State, and local emergency response providers. Among other
requirements, the Intelligence Reform Act requires the Federal
Communications Commission to conduct a study to assess the short-term and
long-term spectrum needs of emergency response providers, and report its
findings to Congress not later than December 17, 2005. Accordingly, the
Commission seeks comment from interested parties in order to assist it in
conducting the study.
[SOURCE: Federal Communications Commission]
http://hraunfoss.fcc.gov/edocs_public/attachmatch/FCC-05-80A1.doc

TWO UPSTARTS VIE FOR DOMINANCE IN SATELLITE RADIO
Sirius and XM are fighting for supremacy in the satellite-radio industry.
Racing to win control of an embryonic new medium, the two have followed
sharply different paths: XM has cut extensive distribution deals and offers
distinctive technology while Sirius is amassing a trove of exclusive
content. Both want to lure listeners away from regular radio broadcasts
with subscription services offering more than 100 channels. When satellite
radio launched, few thought consumers could be persuaded to pay for a
service that was similar to what they already got free. But the services'
high-quality programming and minimal commercial interruptions have been a
strong lure. XM and Sirius have signed up more than four million
subscribers who pay $12.95 a month. That's tiny compared with the total
universe of 229 million radio listeners, as measured by the ratings service
Arbitron Inc., but double the number of subscribers compared with a year ago.
[SOURCE: Wall Street Journal, AUTHOR: Sarah McBride sarah.mcbride( at )wsj.com]
http://online.wsj.com/article/0,,SB111214960407492809,00.html?mod=todays...
(requires subscription)

TELECOM

MCI FORMALLY SPURNS REVISED QWEST OFFER, WILL STAY WITH VERIZON
No MCI for you, Qwest. MCI once again rebuffed Qwest Tuesday accepting a
revised -- but still lower -- bid from chosen merger partner Verizon.
Verizon offered $23.50 a share in cash and stock. Qwest instead has offered
$26 a share. Qwest said in a statement it was still assessing and left the
door open to another run at MCI.
[SOURCE: Communications Daily, AUTHOR: Howard Buskirk]
(Not available online)
More coverage --
NYTimes: http://www.nytimes.com/2005/03/30/business/30phone.html
WSJ:
http://online.wsj.com/article/0,,SB111210284638691884,00.html?mod=todays...
WP: http://www.washingtonpost.com/wp-dyn/articles/A11437-2005Mar29.html
USAToday: http://www.usatoday.com/printedition/money/20050330/1b_mci30.art.htm
LATimes:
http://www.latimes.com/business/printedition/la-fi-mci30mar30,1,2349224....

NASUCA APPEALS FCC BILLING RULES
National Association of State Utility Consumer Advocates (affectionately
known as NASUCA) appealed an FCC billing decision extending
truth-in-billing rules to wireless carriers and preempting state controls
on line items on wireless consumer bills. The FCC order responded partly to
a NASUCA petition seeking a ban on many "regulatory" charges on
long-distance and wireless bills. "Unfortunately, in response to our call
for misleading charges to be eliminated, the FCC has failed to take any
meaningful action that will benefit our nation's telephone consumers," said
NASUCA Telecom Committee Chairman David Bergmann. He said NASUCA appealed
"the entire order, but the two key things we are appealing are state
preemption and extension of what we believe inadequate rules to wireless
carriers... We plan on looking at the order to see whether there are any
other points we want to make on the appeal." The National Association of
Regulatory Utility Commissioners (NARUC) will also appeal the decision.
[SOURCE: Communications Daily, AUTHOR: Susan Polyakova]
(Not available online)

QUICKLY

ENERGY EFFICIENCY ADVOCATES EYE STATE STANDARDS FOR DTV CONVERTORS
At the federal level, the digital TV debate focuses on setting a hard date
to end the transition to DTV. At the state level, the current debate seems
to be about setting energy level standards for digital convertor boxes. In
fighting bills aiming to set energy standards for settop boxes, industry
representatives say they will stifle innovation and complicate bundling.
Proponents of the legislation say this year's legislative crop seeks to
keep the market from being flooded with "cheap and inefficient" converter
boxes when a hard date is set for digital conversion:
[SOURCE: Communications Daily, AUTHOR: Dinesh Kumar]
(Not available online)

WISPS: PROVIDING OPPORTUNITIES FOR RURAL AMERICA THROUGH ACCESS TO BROADBAND
Text of FCC Commissioner Jonathan S. Adelstein's speech at the Wireless
Internet Service Providers Convention (WISPCON VII).
[SOURCE: Federal Communications Commission]
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-257737A1.doc

PRODUCT PLACEMENT IN MEDIA 2005
Following on the NYTimes article summarized here yesterday, PQ Media
released a report Tuesday on the size and structure of the product
placement market. See a summary of the report at the URL below.
http://www.pqmedia.com/ppsm2005-es.pdf
See coverage in --
Broadcasting&Cable:
http://www.broadcastingcable.com/article/CA513541.html?display=Breaking+...
(free access for Benton's Headlines subscribers)
--------------------------------------------------------------
Communications-related Headlines is a free online news summary service
provided by the Benton Foundation (www.benton.org). Posted Monday through
Friday, this service provides updates on important industry developments,
policy issues, and other related news events. While the summaries are
factually accurate, their often informal tone does not always represent the
tone of the original articles. Headlines are compiled by Kevin Taglang
(headlines( at )benton.org) -- we welcome your comments.
--------------------------------------------------------------

Benton's Communications-related Headlines for 3/29/05

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

AGENDA
Media Ownership Top Challenge for New Commission, Copps Says

CONTENT
TV Reporter Earned Money from State
More Products Get Roles in Shows
Hollywood, do you Hear America Griping?
Cleaning up TV
Online Music Case Outcome Rests on VCR Technology
Internet's Future Hangs in Balance with Two Cases

OWNERSHIP
Cablevision May Join Adelphia Bid
Brazil: Free Software's Biggest and Best Friend

QUICKLY -- Consumers Buying High Definition TV Sets; USF May Boost Phone
Fees; Qwest Gives MCI April 5 Deadline; Cellular Complaints; VeriSign May
Operate '.net'; The UN and Internet Governance; Gadgets rule on College
Campuses; Making the Most of Tech in Schools

AGENDA

MEDIA OWNERSHIP TOP CHALLENGE FOR NEW COMMISSION, COPPS SAYS
The FCC should begin a "comprehensive, open and public" rulemaking on media
ownership, complete intercarrier compensation (ICC) reform by year's end,
and improve homeland security initiatives under FCC purview. This ambitious
agenda proposal comes from Commissioner Michael Copps, not the new FCC
Chairman Kevin Martin. Commissioner Copps indicated he and fellow
Commissioner Jonathan Adelstein are "hitting the road" to gather Americans'
opinions on media ownership. "We have a second opportunity to step up to
the plate and come up with a set of rules to encourage localism, diversity
and competition -- and also a set of rules that can pass the red-face test
in court," Commissioner Copps told a luncheon hosted by the Federal
Communications Bar Association. Copps said he would back revisiting
multicast must-carry rules, specifically localism and diversity issues he
sees as inadequately explored. "I've been disappointed we haven't had a
better dialogue on this," he said. The Commission needs to complete action
on digital broadcasters' public interest obligation, an issue that has
"languished at the Commission for years," Copps said: "On the central
question of what the digital transition means for the public interest, the
Commission has had a bad case of lock-jaw," with the result a "big digital
gap." The task is to decide how the DTV transition will serve adult viewers
and listeners, he said.
[SOURCE: Communications Daily, AUTHOR: Anne Veigle]
(Not available online)
Trade magazines covered pieces of Copps' speech at the URLs below --
Multicast must-carry:
http://www.multichannel.com/article/CA513483.html?display=Breaking+News&...
Homeland Security:
http://www.broadcastingcable.com/article/CA513519?display=Breaking+News&...
Top Five consequences of Kevin Martin's chairmanship:
http://www.broadcastingcable.com/article/CA513522?display=Breaking+News&...
(free access for Benton's Headlines subscribers)

CONTENT

TV REPORTER EARNED MONEY FROM STATE
At the same time one of Florida's most visible television reporters brought
the news to viewers around the state, he earned hundreds of thousands of
dollars on the side from the government agencies he covered. Mike
Vasilinda, a 30-year veteran of the Tallahassee press corps, does public
relations work and provides film editing services to more than a dozen
state agencies. His Tallahassee company, Mike Vasilinda Productions Inc.,
has earned more than $100,000 over the past four years through contracts
with Gov. Jeb Bush's office, the Secretary of State, the Department of
Education and other government entities that are routinely part of
Vasilinda's stories. Vasilinda also was paid to work on campaign ads for at
least one politician and to create a promotional movie for Leon County. One
of his biggest state contracts was a 1996 deal that paid nearly $900,000 to
air the weekly drawing for the Florida Lottery. Meanwhile, the freelance
reporter's stories continued to air on CNN and most Florida NBC stations.
[SOURCE: Herald Tribune, AUTHOR: Chris Davis chris.davis( at )heraldtribune.com
& Matthew Doig matthew.doig( at )heraldtribune.com]
http://www.heraldtribune.com/apps/pbcs.dll/article?AID=2005503260408
Also in --
NYTimes: http://www.nytimes.com/2005/03/29/national/29florida.html

MORE PRODUCTS GET ROLES IN SHOWS, AND MARKETERS WONDER IF THEY ARE GETTING
THEIR MONEY'S WORTH
Branded entertainment involves embedding advertising inside the content of
television and radio programs and movies by placing products in important
scenes or making brands intrinsic elements of plot lines. The goal of such
ploys is to regain the attention of consumers who can avoid advertising by
using digital video recorders, satellite radio and digital juke boxes. PQ
Media, a research company, plans to release a report today that summarizes
spending on product placement for the last three decades. The report
predicts that spending this year will total a record $4.25 billion, an
increase of 22.8 percent from the $3.46 billion spent in 2004. As recently
as 1999, the spending totaled just $1.63 billion.
[SOURCE: New York Times, AUTHOR: Stuart Elliott]
http://www.nytimes.com/2005/03/29/business/media/29adco.html
(requires registration)

HOLLYWOOD, DO YOU HEAR AMERICA GRIPING?
[Commentary] More than half of America's TV watchers - 53% - think the
Federal Communications Commission (FCC) should place stricter controls on
broadcast-channel shows depicting sexual content and violence. An imposing
68% believe the entertainment industry has lost touch with the moral
standards of the audience. 66% said there is too much violence on open-air
TV, 58% said there's too much cursing, and 50% found too much sexual
content, the Time poll said. So upset is the public that about 49% agree
that FCC regulation ought to be extended to cover basic cable, which
includes raunchy reality shows on MTV and the over-the-top FX shows "The
Shield" and "Nip/Tuck" on many cable systems. The public is making its
feelings known in poll after poll. The indecency issue isn't going away,
and the anything-goes entertainment elite is not on the winning end. It's
time for a cleanup.
[SOURCE: The Christian Science Monitor, AUTHOR: L. Brent Bozell III,
Parents Television Council]
http://www.csmonitor.com/2005/0329/p09s01-coop.html

CLEANING UP TV
[Commentary] The new Federal Communications Commission Chairman Kevin
Martin has been leading a crusade for stricter enforcement and tougher
fines for indecent programming on free TV and radio. But we must strike a
balance between moral protest and public demand. For many, the issue boils
down to how to protect children from inappropriate content while still
upholding the First Amendment rights of artists, directors and producers.
It is unfair to impose a uniform solution on all Americans when tastes in
media are anything but uniform. We should look at indecency as a symptom of
a larger problem: the lack of consumer choice and control over what they
see on television. The answer to concerns over indecency, then, is not less
speech, but more speech. We should reduce media concentration and require
more independent and noncommercial content on broadcast, cable and
satellite TV. We should pursue policies that ensure that families can
select and pay for the channels they want from a vastly expanded and
diverse set of options, including more programming serving minority
communities. A policy mandating materials to educate consumers on
channel-blocking technologies also would further empower parents without
undercutting the First Amendment. Giving everyone more programs
representing a wide variety of tastes and views would increase the
likelihood that consumers will get more of what they want and less of what
they don't.
[SOURCE: Detroit Free Press, AUTHOR: Robert McChesney & Ben Scott]
http://www.freep.com/voices/columnists/efcc27e_20050327.htm

ONLINE MUSIC CASE OUTCOME RESTS ON VCR TECHNOLOGY
At the Supreme Court today, backers of "peer to peer" networks like
Grokster will argue that the software makers deserve the same protections
as VCR manufacturers, because both can be used for good or ill. Record
labels and movie studios will argue that Grokster should be held
responsible when its millions of users illegally copy movies and music
directly from each others' computers. Both sides will agree on one thing --
the court could harm their ability to produce innovative new products if it
doesn't rule in their favor.
[SOURCE: Reuters, AUTHOR: Andy Sullivan]
http://www.reuters.com/newsArticle.jhtml?type=internetNews&storyID=8016008

INTERNET'S FUTURE HANGS IN BALANCE WITH TWO CASES
[Commentary] From its inception, the Internet has thrived on openness and
competition. It's those forces that have allowed it to develop into a
hotbed of innovation and emerge as the most powerful communications and
commerce medium the world has ever known. Tuesday, the U.S. Supreme Court
will hear, back to back, two cases whose outcomes will determine whether
the Internet continues on this path or veers in a very different direction.
One case, known as FCC vs. Brand X Internet Services, will establish the
rules that govern access to the pipes -- cable and telephone lines -- that
are the conduit for Internet traffic. The other, known as MGM Studios vs.
Grokster, will determine not only the fate of the peer-to-peer networks,
which are at the heart of the case, but also the freedom to innovate in
burgeoning areas such as digital music and video. Rulings are not expected
until summer, but the hearings Tuesday should give some indication of
what's in store for the future of the Internet.
[SOURCE: San Jose Mercury News, AUTHOR: Editorial Staff]
http://www.mercurynews.com/mld/mercurynews/business/technology/11251123.htm
Also see --
* California's Civil War
[Commentary] Today, the U.S. Supreme Court will intervene in California's
civil war -- the conflict between Hollywood and Silicon Valley over digital
copyright rights.
[SOURCE: Los Angeles Times, AUTHOR: Editorial Staff]
http://www.latimes.com/news/printedition/opinion/la-ed-supreme29mar29,1,...
(requires registration)
* What We Have Here is a Failure to Communicate
A look at the stakes in today's Brand X hearing at the Supreme Court.
[SOURCE: AlterNet, AUTHOR: Ren Bucholz, Electronic Frontier Foundation]
http://www.alternet.org/mediaculture/21598/

OWNERSHIP

CABLEVISION MAY JOIN ADELPHIA BID
Cablevision Systems is in advanced talks to join two big private equity
firms -- Kohlberg Kravis Roberts and Providence Equity Partners -- that are
bidding for Adelphia Communications, adding an 11th-hour twist to an
auction that had seemed certain to be won by another team comprising
Comcast and Time Warner, the nation's two biggest cable operators. The Time
Warner-Comcast alliance has long been favored to win, and in recent weeks
has appeared close to reaching a final agreement for control of the company
by paying more than $18 billion in stock. Kohlberg Kravis and Providence
have already submitted an all-cash bid worth about $15 billion for Adelphia
and would submit a "substantially higher" offer if Cablevision decided to
join them.
[SOURCE: New York Times, AUTHOR: Andrew Ross Sorkin]
http://www.nytimes.com/2005/03/29/business/media/29auction.html
(requires registration)

BRAZIL: FREE SOFTWARE'S BIGGEST AND BEST FRIEND
Looking to save millions of dollars in royalties and licensing fees,
Brazil's president has instructed government ministries and state-run
companies to gradually switch from costly operating systems made by
Microsoft and others to free operating systems, like Linux. Brazil has also
become the first country to require any company or research institute that
receives government financing to develop software to license it as
open-source, meaning the underlying software code must be free to all. Now
Brazil's government looks poised to take its free software campaign to the
masses. And once again Microsoft may end up on the sidelines. By the end of
April, the government plans to roll out a much ballyhooed program called PC
Conectado, or Connected PC, aimed at helping millions of low-income
Brazilians buy their first computers. And if the president's top technology
adviser gets his way, the program may end up offering computers with only
free software, including the operating system, handpicked by the government
instead of giving consumers the option of paying more for, say, a basic
edition of Microsoft Windows.
[SOURCE: New York Times, AUTHOR: Todd Benson]
http://www.nytimes.com/2005/03/29/technology/29computer.html
(requires registration)

QUICKLY

HIGH DEFINITION TV SERVICE NOW IN 10 MILLION HOMES
As of March 2005, 10 million homes around the world were watching HDTV
programming on a high-definition TV set. By the end of 2005, the worldwide
total of these HDTV service households is projected to reach 15.5 million,
reports In-Stat (http://www.in-stat.com). The rate of growth of HDTV
households will continue to be strong over the next several years, and by
2009, HDTV households worldwide are forecasted to reach 52 million,
according to the high-tech market research firm. A recent report by In-Stat
also found 1) there are currently 4 million HDTV households in the US, up
from 1.6 million in March 2004 and 2) survey of US consumers showed that an
amazing 76% of the respondents had watched HDTV programming on an HDTV set,
although many of the respondents noted that they had simply seen a
demonstration of HDTV in a retail store. The report was originally priced
at $3,000, but we've secured a special discount for Headlines subscribers
-- get it for a mere 2,995 U.S. Dollars. (We are always looking out for our
subscribers!)
[SOURCE: In-Stat Press Release]
http://www.instat.com/press.asp?ID=1284&sku=IN0501899MB

UNIVERSAL SERVICE CHARGES MAY BOOST US PHONE FEES
In a report released Monday by the Congressional Budget Office (CBO) to the
Senate Budget Committee, there's a warning that US households could see
fees on their telephone bills rise at much as 18.1% by 2007 depending on
what changes are made to the universal service fund which subsidizes
communications services. If no action is taken, a shrinking long-distance
revenue base and increased demand on the USF program would cause the
average payment by each household to rise 8.1 percent to $2.26 a month in
2007 from $2.09 per month in 2003, the CBO said. The monthly average charge
would likely rise to $2.47 a month by 2007 or 18.1 percent if the USF
program was switched to a per-number charge or if cable high-speed Internet
service was included in the revenues for calculating contributions.
[SOURCE: Reuters]
http://www.reuters.com/newsArticle.jhtml?type=internetNews&storyID=8016663
The CBO report -- Financing Universal Telephone Service -- is available online.
http://www.cbo.gov/ftpdocs/61xx/doc6191/03-28-Telephone.pdf
Coverage in --
LATimes:
http://www.latimes.com/business/printedition/la-fi-phonefees29mar29,1,46...

QWEST GIVES MCI A WEEK TO ACCEPT BID
In a letter to MCI's board of directors, Qwest has given the long distance
company until April 5 to accept its merger bid.
[SOURCE: Washington Post, AUTHOR: Yuki Noguchi]
http://www.washingtonpost.com/wp-dyn/articles/A7409-2005Mar28.html
(requires registration)
Also see --
WSJ:
http://online.wsj.com/article/0,,SB111203513555591037,00.html?mod=todays...
NYTimes: http://www.nytimes.com/2005/03/29/business/29place.html
LATimes:
http://www.latimes.com/business/printedition/la-fi-qwest29mar29,1,229068...

HOW CELLULAR SERVICES RANK ON COMPLAINTS
With the purchase of AT&T Wireless and adding new subscribers quickly,
Cingular Wireless now has about 50 million cellphone customers. But it also
leads the industry with the country's highest customer-complaint rate. In
the fourth quarter, Cingular Wireless had a rate of 4.6 complaints per
100,000 customers. The rate of complaints for T-Mobile USA was next highest
at 4.3 per 100,000 customers. Sprint and Nextel Communications -- which
announced plans to merge in December -- posted complaint rates of 3.6 and
2.3 per 100,000 customers, respectively. By comparison, Verizon Wireless, a
joint venture of Verizon Communications and Vodafone, and the nation's
second-largest cellphone operator, had the lowest rate of complaints, with
1.4 per 100,000 customers.
[SOURCE: Wall Street Journal, AUTHOR: Li Yuan li.yuan( at )wsj.com and Jesse
Drucker jesse.drucker( at )wsj.com]
http://online.wsj.com/article/0,,SB111205654336591433,00.html?mod=todays...
(requires subscription)

VERISIGN LEADS LIST TO OPERATE '.NET. INTERNET REGISTRY
The Internet Corporation for Assigned Names and Numbers (Icann) said
yesterday that VeriSign Inc. leads its list of candidates to operate the
registry of addresses ending in the ".net" suffix, when VeriSign's own
current contract expires this year. VeriSign also operates the registry for
Internet addresses ending in the popular ".com" suffix. The ".net" registry
currently includes about 5 million domain name addresses and represents
about $30 million in annual revenue, from annual fees paid by the domain
owners. VeriSign had revenue of $1.2 billion last year.
[SOURCE: Wall Street Journal, AUTHOR: Kevin J. Delaney
kevin.delaney( at )wsj.com ]
http://online.wsj.com/article/0,,SB111206789472391732,00.html?mod=todays...
(requires subscription)

THE UN THINKS ABOUT TOMORROW'S CYBERSPACE
An interview with Houlin Zhao, director of the Telecommunication
Standardization Bureau of the International Telecommunication Union.
[SOURCE: C-Net|News.com, AUTHOR: Declan McCullagh]
http://news.com.com/The+U.N.+thinks+about+tomorrows+cyberspace/2008-1028...

GADGETS RULE ON COLLEGE CAMPUSES
A look at the role of technology on college campuses.
[SOURCE: USAToday, AUTHOR:Paul Davidson]
http://www.usatoday.com/printedition/money/20050329/1b_collegetech29.art...

TRANSFORMATION KEY TO COSN CONFERENCE
Finding a way to go beyond the wires and boxes and use technology to better
equip today's students for life in an increasingly digital economy was the
goal last week as a record number of educators and school technology
leaders converged on Washington, DC, for the Consortium for School
Networking's (CoSN's) 10th Annual Networking Conference.
[SOURCE: eSchool News, AUTHOR: Corey Murray]
http://www.eschoolnews.com/news/showStoryts.cfm?ArticleID=5581
--------------------------------------------------------------
Communications-related Headlines is a free online news summary service
provided by the Benton Foundation (www.benton.org). Posted Monday through
Friday, this service provides updates on important industry developments,
policy issues, and other related news events. While the summaries are
factually accurate, their often informal tone does not always represent the
tone of the original articles. Headlines are compiled by Kevin Taglang
(headlines( at )benton.org) -- we welcome your comments.
--------------------------------------------------------------

Benton's Communications-related Headlines for 3/28/05

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

JOURNALISM
The Art of Manufactured News
Is Online News Reaching Its Potential?
White House Media May Get Temporary Boot

CABLE/INTERNET
The Cable Behemoth
Media Wars Move to High Court
Hobbling Grokster -- and Innovation, Too
When David Steals Goliath's Music

TELECOM/INTERNET
FCC Grants BellSouth Petition
In Fight for MCI, Qwest CEO Won't Take No for an Answer

TELEVISION
Under New Chief, FCC Considers Widening Its Reach
On Public TV, Not Quite an Ad But Pretty Close
Stay Tuned for the Next Commercial
A Traumatic End to the DTV Transition?
TV Is Still the Medium That Builds Brands Best

QUICKLY -- Bill Gates' "Think Week"; State Telecom Legislation; New Web=20
Sites to Store Public's Digital Content; Expanding Use of =93Orphan Works=94=
;=20
Sharpton and Violent Radio; A Transatlantic Spam Alliance; Rural Telecom=20
Demand; Blockbuster Drops Hollywood Bid; Censorship in the Science Museums

JOURNALISM

THE ART OF MANUFACTURED NEWS
If Professor Noam Chomsky was dead, he'd be spinning in his grave. As the=20
media world assesses new ground rules, producer Medialink Worldwide says=20
=93branded journalism=94 is the best way to advertise in a splintered=
market.=20
Instead of sending out video news releases in hopes that stations and cable=
=20
networks will air them, PR firms are actually creating the newscast, then=20
buying spots on networks the way a Madison Avenue firm would. If viewers=20
were confused before, they'll certainly have a hard time discerning news=20
updates from mini-infomercials now. Critics say the most troubling aspect=20
of the latest VNR product from Medialink=97a paid ad spot=97is that the news=
=20
content is genuine but serves as a conduit for a brand or corporate=20
mention. Moskowitz says Medialink is exploring a wide range of similar=20
formats in what he calls =93marketing public relations=94 and what other=20
PR-industry insiders dub =93secured placements.=94 By secured, they mean=
that=20
the media time was purchased and guaranteed to air unlike conventional VNR=
=20
or B-roll footage. Moreover, Medialink Chairman/CEO Laurence says he is=20
creating a new genre of television that blends news, PR and conventional=20
Madison Avenue media-buying practices. In effect, he is competing with both=
=20
Madison Avenue and the TV news industry, while blurring the lines between=20
them. Moskowitz sees the distinctions between ad agencies and PR companies=
=20
fading fast. Ad agencies spend millions producing commercials, buying media=
=20
time or negotiating branded content deals; their PR counterparts are=20
accomplishing the same for pennies on the marketing dollar.
[SOURCE: Broadcasting&Cable, AUTHOR: Joe Mandese]
http://www.broadcastingcable.com/article/CA513090.html?display=3DFeature...
erral=3DSUPP
(free access for Benton's Headlines subscribers)

IS ONLINE NEWS REACHING ITS POTENTIAL?
Ten years ago, at the first =93New News=94 seminar held at the Poynter=20
Institute, a group of digital pioneers brainstormed what would be new about=
=20
online news. They listed what it was that newspapers were not providing=20
that the new digital news space would enable and how the new medium might=20
change news reporting and writing.
Many of the predictions were based on the idea of the =93limitless=
newshole,=94=20
an endless space for providing deep context and satisfying the =93give me=20
more=94 that reporters thought news seekers were craving. The promise of=20
hyperlinking and easier communication between readers and reporters were=20
all high on the list of ways this new news space would change news.=20
Creating new expressive forms of reporting, providing better follow-up on=20
reported stories and crafting new relationships between words and graphics=
=20
were noted as new potentials for online news. Ten years later, just how far=
=20
have we come in realizing these predictions? How much have we truly=20
leveraged the possibilities of new forms of news writing and reporting=
online?
[SOURCE: Online Journalism Review, AUTHOR: Nora Paul]
http://www.ojr.org/ojr/stories/050324paul/

WHITE HOUSE MEDIA MAY GET TEMPORARY BOOT
The stuffy, packed, run-down White House briefing room has become something=
=20
of a safety hazard over the years and may require a top-to-bottom=20
renovation this summer. If the administration moves forward, the dozens of=
=20
reporters who work and virtually live in the cramped quarters will be=20
relocated to a spot outside the White House, a scenario that does not sit=20
well with some journalists concerned about long-term access to the=20
president and administration officials. The temporary accommodations for=20
the White House press corps would likely be in the nearby Eisenhower=20
Executive Office Building.
[SOURCE: Washington Post, AUTHOR: Jim VandeHei]
http://www.washingtonpost.com/wp-dyn/articles/A5283-2005Mar27.html
(requires registration)

CABLE/GROKSTER

THE CABLE BEHEMOTH
[Commentary] In New York, Cablevision reigns over a sports and=20
entertainment empire that is the sports equivalent of the old Hollywood=20
studio system before it was broken up on antitrust grounds. It owns Madison=
=20
Square Garden, Radio City Music Hall, the NBA Knicks franchise and the=20
NHL's Rangers, as well as the cable channel (the MSG network) that=20
broadcasts the teams' games. You'd think Cablevision wouldn't want to call=
=20
attention to its monopolistic control over professional sports in=20
Manhattan. Think again -- the cable operator is leading the fight against a=
=20
proposed New York Jets football stadium. Cablevision, loath to see an=20
alternative entertainment venue in midtown Manhattan, has spent millions=20
lobbying against the Jets project (after backing out of talks with the Jets=
=20
to be partners on the deal). Then it recklessly dreamed up an alternative=20
development plan. Most alarming of all, Cablevision blocked pro-stadium ads=
=20
from its cable system. That prompted the Jets to file a lawsuit accusing=20
the cable operator of violating antitrust laws. The growing power of cable=
=20
operators to restrain trade and competition is a matter for Congress and=20
the rest of the nation to keep an eye on.
[SOURCE: Los Angeles Times, AUTHOR: Editorial Staff]
http://www.latimes.com/news/printedition/opinion/la-ed-cable28mar28,1,16...
0.story?coll=3Dla-news-comment
(requires registration)

MEDIA WARS MOVE TO HIGH COURT
Grokster. Brand X. How do these Supreme Court cases relate to me, a global=
=20
media conglomerate? At stake, from the commercial perspective, is billions=
=20
in content protection and billions in broadband infrastructure. Grokster=92s=
=20
allies acknowledge that file-swapping has cost traditional content=20
providers huge sums of money. The 100 million music files downloaded in=20
2004 represent $1.3 billion in lost profits, says the Consumer Federation=20
of America. The music industry says its annual losses are actually $4=20
billion. Mark Cooper, research director for Consumer Federation of America,=
=20
says Hollywood and other media giants are standing in the way of technology=
=20
rather than finding ways to adapt their business to new options available=20
to consumers. Now that technology has made it easy for Web surfers to=20
obtain songs one at a time, they are no longer willing to pay the $13 cost=
=20
for an entire album. Rather than forcing consumers to stick with the old,=20
expensive business model, media companies should make it easier to download=
=20
single files legally by using royalty-management software already on the=20
market. If Earthlink and its allies win the Brand X case, subscribers to=20
cable-modem service would be able to choose from many ISPs rather than=20
being forced to use their cable company=92s broadband service. If the=20
justices side with the cable industry, however, operators will be able to=20
dictate what rival services, if any, are available on their networks. For=20
instance, an operator might ban not only independent ISPs, but also=20
companies offering Internet telephone service in competition with the cable=
=20
company=92s brand. Mark Cooper, research director for Consumer Federation of=
=20
America, says development of new high-speed services will be stymied if=20
cable isn't forced to carry competing providers. For instance, the largest=
=20
cable operator, Comcast, is only now rolling out Internet telephone service=
=20
-- three years after independent Vonage began offering the service over=20
cable lines. =93It=92s not the Comcasts of the world that are inventing new=
=20
technologies,=94 he says.
[SOURCE: Broadcasting&Cable, AUTHOR: Bill McConnell]
http://www.broadcastingcable.com/article/CA513093?display=3DNews&referra...
SUPP
(free access for Benton's Headlines subscribers)
See also --
* Why 'Brand X=92 Matters to Cable
[SOURCE: Multichannel News, AUTHOR: Ted Hearn]
http://www.multichannel.com/article/CA513269.html?display=3DTop+Stories&...
rral=3DSUPP
(free access for Benton's Headlines subscribers)
* A Supreme Court Showdown for File Sharing
[SOURCE: New York Times, AUTHOR: Saul Hansell & Jeff Leeds]
http://www.nytimes.com/2005/03/28/technology/28grokster.html
(requires registration)
* USAToday:=20
http://www.usatoday.com/printedition/news/20050328/a_court28.art.htm
=
http://www.usatoday.com/printedition/money/20050328/grokster28.art.htm
=
http://www.usatoday.com/printedition/money/20050328/fileshare28.art.htm
=
http://www.usatoday.com/printedition/money/20050328/legit28.art.htm
*=20
LATimes:=20
http://www.latimes.com/business/printedition/la-fi-grokster28mar28,1,686...
.story?coll=3Dla-headlines-pe-business

HOBBLING GROKSTER -- AND INNOVATION, TOO
[Commentary] Although the U.S. Supreme Court won't hear arguments in MGM=20
Studios v. Grokster until tomorrow, the case is already having a chilling=20
effect on technological innovation. Feeling the sting of the massive theft=
=20
by users of peer-to-peer (P2P) software made by Grokster and other=20
defendants, movie and music studios are asking the court to hold tech=20
companies liable for copyright infringement if people use their products to=
=20
steal films, songs, or other protected works. If the Court sides with=20
Hollywood, it could put an entire up-and-coming generation of technological=
=20
innovation at risk. Ever since the invention of the player piano, the=20
reigning entertainment titans of the day have fought new technologies, most=
=20
recently taking up arms against VCRs, CDs, and MP3 players. Each time, they=
=20
eventually came to recognize the value of these innovations, for themselves=
=20
and for their customers. P2P -- and whatever as-yet-unimagined technologies=
=20
might follow -- will be no different. The Supreme Court needs to keep the=20
way clear for innovation.
[SOURCE: BusinessWeek, AUTHOR: Lorraine Woellert]
http://www.businessweek.com/technology/content/mar2005/tc20050324_0001.htm

WHEN DAVID STEALS GOLIATH'S MUSIC
[Commentary] When the Supreme Court takes up peer-to-peer file sharing this=
=20
week, the NY Times hopes it considers individual creators of music, movies=
=20
and books, who need to keep getting paid if they are going to keep=20
creating. If their work is suddenly made "free," all of society is likely=20
to suffer. The founders wrote copyright protections into the Constitution=20
because they believed that they were necessary for progress. Movies, music=
=20
and books require investments of money and time. If their creators cannot=20
make money from them, many will be unwilling or unable to keep producing.=20
Or they may have to finance their work in troubling ways, like by building=
=20
in product placements or taking money from donors with agendas. Grokster's=
=20
supporters are justified in worrying that if the courts are too quick to=20
rein in new technology, innovation can be stifled. They are also right to=20
point out that copyright has sometimes been given too much protection,=20
notably in the Copyright Term Extension Act, which gratuitously added 20=20
years to existing copyrights. But these concerns do not erase the=20
continuing importance of intellectual property, which is unquestionably=20
under assault. Both the court and Congress should be sensitive to evolving=
=20
technologies. But they should not let technology evolve in a way that=20
deprives people who create of the ability to be paid for their work.
[SOURCE: New York Times, AUTHOR: Editorial Staff]
http://www.nytimes.com/2005/03/28/opinion/28mon1.html
(requires registration)

TELECOM/INTERNET

FCC GRANTS BELLSOUTH PETITION
In an order released Friday, the FCC decided to preempt state telecom=20
regulations requiring BellSouth to provide DSL service to customers getting=
=20
voice service from competitors that lease BellSouth's network. The March 17=
=20
vote, one of the last before ex-FCC Chairman Michael Powell left, covers=20
all state commissions, not just those in BellSouth territory. Commissioners=
=20
Copps and Adelstein dissented in part saying the decision =93unwisely=
flashes=20
the green light for broadband tying arrangements.=94 They said the BellSouth=
=20
practice of refusing to offer DSL without voice service is a form of tying,=
=20
which they defined as an arrangement in which =93a seller conditions the=20
availability of one product on the buyer=92s purchase of a second product.=
=94
[SOURCE: Communications Daily, AUTHOR: Edie Herman]
(Not available online)
BellSouth Press Release: BellSouth Says FCC Broadband Order Clears=20
Underbrush; Encourages Broadband Rollout
http://bellsouthcorp.com/proactive/newsroom/release.vtml?id=3D49287
FCC Order: http://hraunfoss.fcc.gov/edocs_public/attachmatch/FCC-05-78A1.doc
Commissioners Copps and Adelstein Statement:=20
http://hraunfoss.fcc.gov/edocs_public/attachmatch/FCC-05-78A2.doc
Coverage --
News.com:=20
http://news.com.com/FCC+starts+to+look+at+naked+DSL/2100-1034_3-5637790....
?tag=3Dnefd.top
WSJ:=20
http://online.wsj.com/article/0,,SB111196508520290459,00.html?mod=3Dtoda...
s_marketplace

IN FIGHT FOR MCI, QWEST CEO WON'T TAKE NO FOR AN ANSWER
Talks between the MCI and Qwest face a deadline of midnight tonight. So=20
perhaps as soon as today, the MCI board is expected to publicly indicate=20
whether Qwest's bid has a chance to scuttle the deal with Verizon. Although=
=20
Qwest was informed February 13 that it had lost its bid for the long=20
distance company, Qwest CEO Richard C. Notebaert has refused to concede=20
defeat, launching a guerrilla-style campaign for MCI.
[SOURCE: Wall Street Journal, AUTHOR: Almar Latour almar.latour( at )wsj.com and=
=20
Jesse Drucker jesse.drucker( at )wsj.com]
http://online.wsj.com/article/0,,SB111196616816090474,00.html?mod=3Dtoda...
s_page_one
(requires subscription)
* Plan to Merge MCI, Qwest Has A Sour Ring to It
As a long-time advocate for investors, it pains Jerry Knight to say that=20
MCI's board of directors ought to tell shareholders who oppose merging with=
=20
Verizon Communications to take a hike.
http://www.washingtonpost.com/wp-dyn/articles/A5750-2005Mar27.html

TELEVISION

UNDER NEW CHIEF, FCC CONSIDERS WIDENING ITS REACH
A look at the stakes for the radio and television industries as new policy=
=20
leaders in Washington consider curbing indecent content. Leading lawmakers=
=20
and the new FCC chairman, Kevin Martin, would like to see significant=20
increases in the size of fines for indecent programming via broadcast, new=
=20
procedures that could jeopardize the licenses of stations that repeatedly=20
violate the rules and a possible expansion of rules to cable and satellite=
=20
television and radio providers. And organizations opposing what they=20
consider indecent programming have joined forces with consumer groups that=
=20
have been trying to tighten regulation over the cable industry and force it=
=20
to offer consumers less expensive packages of fewer stations, known as =E0=
la=20
carte services. Some of the anti-indecency groups see =E0 la carte services=
=20
as a way of helping consumers block out programming they consider indecent.=
=20
"We are at a rare moment when there seems to be bipartisan energy on both=20
sides of the political aisle and both sides of the ideological divide,"=20
said Brent Bozell, president of the Parents Television Council, a leading=20
advocacy organization that officials say has been responsible for the vast=
=20
majority of complaints against the broadcasters.
[SOURCE: New York Times, AUTHOR: Stephen Labaton]
http://www.nytimes.com/2005/03/28/business/media/28decency.html
(requires registration)

ON PUBLIC TV, NOT QUITE AN AD BUT PRETTY CLOSE
In March 2004, the Public Broadcasting Service, a nonprofit membership=20
organization of public television stations, loosened its guidelines on the=
=20
content of the credits. So to raise money for noncommercial programming,=20
producers and distributors increasingly allow their corporate underwriters=
=20
to turn their credits into something resembling regular commercials. Since=
=20
the mid-1990's, the underwriter announcements that precede and follow many=
=20
public television programs (and usually conclude with the narrator thanking=
=20
"viewers like you") have gradually adopted many trappings of regular=20
advertising, despite appearing on "commercial-free" television. Many=20
station managers argue that these new sponsorship arrangements are=20
necessary. Federal funding for public television has grown each year since=
=20
2000, but not enough, managers say, to keep up with rising operating costs=
=20
and the additional expense of converting to digital signals. And the=20
states' support has been hampered by money woes.
[SOURCE: New York Times, AUTHOR: Nat Ives]
http://www.nytimes.com/2005/03/28/business/media/28adcol.html?
(requires registration)

STAY TUNED FOR THE NEXT COMMERCIAL
Don't touch that remote! With television watchers increasingly inured to=20
the shocking sights and kooky characters long used in commercials to snare=
=20
attention, many marketers are chasing a new goal: They are aiming to make=20
ads as compelling as the programs they interrupt. "In the old days, you=20
could get away with a funny idea, or anything that was goofy or=20
slap-happy," says Paul Venables, founder and co-creative director of=20
independent San Francisco shop Venables, Bell & Partners. Now, TV ads=20
require a higher level of craftsmanship, better casting and a more obvious=
=20
show of money and intelligence. "It's making people step up and treat TV=20
commercials as what they should be -- not just as a big bullhorn, but=20
something that could create intimacy, where you connect with somebody," he=
=20
says.
[SOURCE: Wall Street Journal, AUTHOR: Brian Steinberg=20
brian.steinberg( at )wsj.com ]
http://online.wsj.com/article/0,,SB111196827904490510,00.html?mod=3Dtoda...
s_marketplace
(requires subscription)

A TRAUMATIC END TO THE DTV TRANSITION?
So why are a few key lawmakers so eager to shut down analog broadcasting in=
=20
a few months and run the risk of enraging millions of voters stuck with=20
useless TV sets? First there's potential spectrum auction revenues, the=20
crack cocaine of federal telecom policy. Then there's the potential that=20
the companies that win those auctions will use them to provide wireless,=20
broadband connections competing with the emerging cable-teleco duopoly. Add=
=20
to that national security concerns as some of the returned spectrum will be=
=20
set aside for first responders. At stake in a poorly planned are 73 million=
=20
TV sets would become useless unless their owners obtained an over-the-air=20
digital converter, a new DTV set or a connection to cable or direct=20
broadcast satellite. Oh and some politicians jobs could be at stake if they=
=20
screw with people's TVs. Americans love their TV, and messing with it could=
=20
inspire a backlash. Just a few years ago, Congress was stunned by the=20
outpouring of anger generated by some of the 500,000 satellite-TV=20
subscribers that were close to losing access to distant feeds of ABC, NBC,=
=20
CBS and Fox programming. =93I think it=92s going to be ugly,=94 said Josh=20
Bernoff, vice president of Boston-based Forrester Research. =93The real name=
=20
for this hard date should be, 'The No More Television for Poor Old People=20
Act.'=94
[SOURCE: Multichannel News, AUTHOR: Ted Hearn]
http://www.multichannel.com/article/CA513178.html?display=3DPolicy&refer...
=3DSUPP
(free access for Benton's Headlines subscribers)

ROHRS: TV IS STILL THE MEDIUM THAT BUILDS BRANDS BEST
TV watching still constitutes 54% of the media that audiences =93consume=94=
and=20
that it is still, by far, the best way to reach mass markets and build=20
brands. Last year, local broadcast revenues grew by 12% in the top 100=20
markets. Revenues were up in nine of the top-10 advertising categories for=
=20
the year, led by political spending, real estate, furniture, automotive and=
=20
car dealerships. In the fourth quarter of 2004, local television revenues=20
jumped by 18%, driven mostly by political advertising as the presidential=20
election came to a close.
[SOURCE: Broadcasting&Cable, AUTHOR: Paige Albiniak]
http://www.broadcastingcable.com/article/CA513110?display=3DSpecial+Repo...
eferral=3DSUPP
(free access for Benton's Headlines subscribers)

QUICKLY

IN SECRET HIDEAWAY, BILL GATES PONDERS MICROSOFT'S FUTURE
Accompanied only by the memories of his mentor, a short green fellow named=
=20
Allen, Master Bill has retreated to a waterfront cottage for his "Think=20
Week," a seven-day stretch of seclusion he uses to ponder the future of=20
technology. Then the digital master, known to many as Bill Gates,=20
propagates those thoughts across the Microsoft empire. The reading list is=
=20
papers collected from the four corners of that empire, from employees --=20
some papers make pleas for more people and money but most are focused on=20
technology trends and development. The effects of this Think Week are=20
rippling through Microsoft. Yusuf Mehdi, vice president in the MSN online=20
group, says he lugged a 6-inch-thick printout of Mr. Gates's Think Week=20
comments on a business trip. In the Office-software division, one group=20
says it used Mr. Gates's comments to change direction on whether to team up=
=20
with or acquire certain companies. (They won't say which way.) A team=20
member was soon in Europe meeting potential partners.
[SOURCE: Wall Street Journal, AUTHOR: Robert A. Guth rob.guth( at )wsj.com]
http://online.wsj.com/article/0,,SB111196625830690477,00.html?mod=3Dtoda...
s_page_one
(requires subscription)

TELECOM FIRES BLAZE IN STATES
A number of states are considering new telecommunications legislation.
[SOURCE: Multichannel News, AUTHOR: Linda Haugsted]
http://www.multichannel.com/article/CA513274.html?display=3DTop+Stories&...
rral=3DSUPP
(free access for Benton's Headlines subscribers)

NEW WEB SITES TO STORE PUBLIC'S DIGITAL CONTENT
Tapping into a growing interest in so-called citizens' media, two Web sites=
=20
launched this week that aim to become repositories and clearinghouses for a=
=20
wide variety of digital content created by the public.
[SOURCE: San Jose Mercury News, AUTHOR: Michael Bazeley]
http://www.siliconvalley.com/mld/siliconvalley/11219984.htm
See also --
Yahoo Launches Search For Nontraditionally Licensed Content
Yahoo is releasing in beta a search engine that looks for pictures,=20
writings and other creative works available for reuse under nontraditional=
=20
copyright licenses offered by Creative Commons.
http://www.techweb.com/wire/ebiz/159905530

PUBLIC KNOWLEDGE SUPPORTS EXPANDING USE OF "ORPHAN WORKS"
The U.S. Copyright Office should permit movie makers, recording artists,=20
authors, scholars and others to make a =93reasonable effort=94 to find=20
copyright owners as a way of making =93orphan works=94 more available,=
Public=20
Knowledge said Friday. =93Orphan works=94 are copyrighted materials for=
which=20
the copyright owner can't be reasonably located. Artists who want to use=20
such material in new creations could be liable for copyright infringement=20
under present law.
[SOURCE: PublicKnowldge Press Release]
http://www.publicknowledge.org/pressroom/releases/pressrelease.2005-03-2...
58900841

SHARPTON WANTS US FCC TO STEP IN ON VIOLENT RADIO
On Thursday, Rev. Al Sharpton urged the FCC to step in to stop what he said=
=20
was violence fomented by radio stations. He asking for field hearings to=20
investigate violence involving radio stations, bar artists from the air for=
=20
90 days if linked to violence, and consider such incidents when deciding=20
whether to renew broadcast licenses.
[SOURCE: Reuters, AUTHOR: ]
http://www.reuters.com/newsArticle.jhtml?storyID=3D8000078

POLITICIANS FORM TRANSATLANTIC SPAM ALLIANCE
The U.S. Congressional Internet Caucus, the body charged with educating=20
lawmakers about the Internet and fostering its growth, is teaming up with=20
its U.K. counterpart to tackle spam. The move will improve communication=20
between the two countries on e-commerce, as well as help tighten laws on=20
unsolicited bulk e-mail, said Derek Wyatt, chairman of the U.K. body, the=20
All Party Parliamentary Internet Group.
[SOURCE: C-Net|News.com, AUTHOR: Dan Ilett]
http://news.com.com/Politicians+form+transatlantic+spam+alliance/2100-73...
-5637131.html?tag=3Dnefd.top

TELECOM: KEY TO RURAL HAPPINESS
Yes, Virginia, there's demand for bundled telecommunications in rural areas=
=20
too.
[SOURCE: Multichannel News, AUTHOR: Linda Moss]
http://www.multichannel.com/article/CA513275.html?display=3DTop+Stories&...
rral=3DSUPP
(free access for Benton's Headlines subscribers)

BLOCKBUSTER DROPS HOLLYWOOD BID
Blockbuster, the largest U.S. video-store chain with about 5,500 outlets,=20
has abandoned its hostile bid to acquire rival video-store chain Hollywood=
=20
Entertainment clearing the way for Movie Gallery to proceed with its=20
accepted bid for Hollywood. Blockbuster cited regulatory concerns as the=20
main reason it wouldn't extend its $991 million offer to acquire Hollywood,=
=20
the third-largest video-store chain with 1,920 stores.
[SOURCE: Wall Street Journal, AUTHOR: Joe Flint joe.flint( at )wsj.com]
http://online.wsj.com/article/0,,SB111190652212190373,00.html?mod=3Dtoda...
s_marketplace
(requires subscription)
USAToday:=20
http://www.usatoday.com/printedition/money/20050328/7b_blockbuster_28.ar...
m

CENSORSHIP IN THE SCIENCE MUSEUMS
[Commentary] A dozen or so Imax theaters, mostly in the South, have been=20
shying away from science documentaries that might offend Christian=20
fundamentalists. The danger in self-censorship by museums is that it will=20
reduce the already tiny world of Imax theaters available for big-screen=20
science documentaries. Producers have a hard time making money as it is. It=
=20
would be unfortunate if censorship by science museums helped drive them=20
away from topics that might offend religious fundamentalists.
[SOURCE: New York Times, AUTHOR: Editorial Staff]
http://www.nytimes.com/2005/03/28/opinion/28mon3.html
(requires registration)
--------------------------------------------------------------
Communications-related Headlines is a free online news summary service=20
provided by the Benton Foundation (www.benton.org). Posted Monday through=20
Friday, this service provides updates on important industry developments,=20
policy issues, and other related news events. While the summaries are=20
factually accurate, their often informal tone does not always represent the=
=20
tone of the original articles. Headlines are compiled by Kevin Taglang=20
(headlines( at )benton.org) -- we welcome your comments.
--------------------------------------------------------------

Benton's Communications-related Headlines for 3/25/05

With Congress away and a "quiet" FCC, all eyes turn to the Supreme Court
next week when it holds hearings on the Brand X and Grokster cases. For
these and other upcoming media policy events, see
http://www.benton.org/calendar.htm

COMMENTARY
Meet the New Boss
AT&T Chief: Repeal Telecom Act
Moscow-style News Video from the White House

OWNERSHIP
Problems Are Scooping Tribune

TELECOM
Texas House Passes Telecom Bill, Bans New Municipal Wi-Fi

QUICKLY -- Questioning Comcast's Rates; In the Know

COMMENTARY

MEET THE NEW BOSS
[Commentary] Mediaweek observed that incoming FCC Chairman Kevin Martin
"arrives on the job with a reputation as a brilliant regulator, an
attentive listener and an advocate of even tougher stands against broadcast
indecency than his predecessor Michael Powell." A TV Week report added that
Chairman Martin "has strong conservative credentials and can be expected to
advance the Bush administration's objective to deregulate the market as
much as is practicable." His concern for local control over media behemoths
remains a potentially encouraging sign. As a commissioner, Martin
repeatedly defended local broadcasters' demands for more say over their
contracts with the major networks and therefore directly contradicted the
big-media friendly stance of Powell. According to Broadcasting & Cable, "It
appears that Martin favors letting owners control two or three stations in
more markets, eliminating the ban on crossownership of stations and
newspapers in the same town. That deregulation is most sought by network
affiliates and independent station owners." Chairman Martin promises to be
even tougher than Powell on indecency. "Powell, Martin, and the
corporate-friendly GOP have green-lighted big media companies to capture
near-total market control over cable and broadcast television. Now, the
same bunch is upset over the low-cost, high-ratings schlock that media
conglomerates pump into the marketplace," said Ben Scott, policy director
at Free Press. "Martin must soon decide if he's a free market Republican or
a local-values Republican. When it comes to regulating the media, you can't
have it both ways."
[SOURCE: Center for American Progress, AUTHOR: Eric Alterman]
http://www.americanprogress.org/site/pp.asp?c=biJRJ8OVF&b=480225
See also --
* Martin Putting FCC Back on Track
[SOURCE: Broadcasting&Cable, AUTHOR: Bill McConnell]
http://www.broadcastingcable.com/article/CA512705?display=Breaking+News&...
(free access for Benton's Headlines subscribers)

AT&T CHIEF: REPEAL TELECOM ACT
AT&T Chairman and CEO David Dorman said Thursday that Congress should
repeal the Telecommunications Act of 1996 -- a law that he said inspired
endless rounds of litigation and cemented regulatory disparities favorable
to wireless-phone and cable-television companies. In drafting new
legislation, Congress should copy the light regulatory treatment accorded
the wireless-phone industry, which has seen usage and revenue soar while
offering consumers better bundles of minutes at declining prices, he said.
Dorman also indicated that the cable industry has flourished because it did
not have to cope with regulations that apply to local phone companies,
particularly with regard to broadband deployment.
[SOURCE: Multichannel News, AUTHOR: Ted Hearn]
http://www.multichannel.com/article/CA512796.html?display=Breaking+News&...
(free access for Benton's Headlines subscribers)

MOSCOW-STYLE NEWS VIDEO FROM THE WHITE HOUSE
[Commentary] Video "news" reports showing Iraqi-Americans jubilant over the
fall of Baghdad, praising airport security as "remarkable," and showing the
Bush Administration as determined to maintain open markets for American
farmers were all commissioned by government departments, a fact that was
not communicated to the viewing public. President Bush was asked at a
recent news conference about the video news release practice and replied
that the packages are "within the law." He tossed the ball right back to
the media, saying it would be helpful if local stations would disclose to
viewers that they chose to use these reports. And he added, "Evidently, in
some cases, that is not the case." Between the White House and the stations
that act like Moscow television, there should be enough shame to go around.
[SOURCE: The Christian Science Monitor, AUTHOR:Daniel Schorr, NPR]
http://www.csmonitor.com/2005/0325/p09s02-cods.html
See also --
* Columnist's HHS Contract To Be Probed
The Government Accountability Office announced Thursday that it will
investigate whether the Department of Health and Human Services violated
the law by awarding a $21,500 contract to commentator and marriage advocate
Maggie Gallagher. She apologized to readers of her syndicated column for
not disclosing the payments to work on President Bush's marriage initiative
while she was also praising the program. She has maintained there was no
connection between the contract and her political views. The investigation
comes at the request of Sens Edward M. Kennedy (D-MA) and Frank Lautenberg
(D-NJ).
[SOURCE: Washington Post, AUTHOR: Howard Kurtz]
http://www.washingtonpost.com/wp-dyn/articles/A64271-2005Mar24.html
(requires registration)

OWNERSHIP

PROBLEMS ARE SCOOPING TRIBUNE
Five years ago, Tribune Company said it would acquire rival Times Mirror
for $8.3 billion. Tribune figured the two media giants could offer
advertisers a coast-to-coast marketplace of television stations, newspapers
and Internet sites reaching eight of every 10 Americans. But that purchase
was made just before the Internet bubble burst and now the company suffers
from maladies afflicting the entire media business, including young adults
who don't read newspapers as much as their parents and ad-sale competition
from new-media rivals. The Los Angeles Times has not delivered on expected
profits, Newsday has been mired in a scandal over allegedly doctored
circulation figures and, just this week, a federal judge's ruling threw a
legal wrench into the engine that Tribune had counted on to drive growth --
cross-ownership of both newspapers and TV stations in each of several big
markets so it could sell lucrative ad packages to major advertisers. What's
a giant media conglomerate to do?
[SOURCE: Wall Street Journal, AUTHOR: Joseph T. Hallinan
joe.hallinan( at )wsj.com]
http://online.wsj.com/article/0,,SB111169664621289017,00.html?mod=todays...
(requires subscription)
See also --
NAACP and Free Press have told the FCC that the Commission should reject
Media General's application to renew WMBB-TV (ABC) Panama City (FL) because
that would let the firm operate a TV station and newspaper in the same
market. The groups say that ownership of WMBB-TV and the Jackson County
Floridan "significantly" harms diversity of viewpoint in coverage of local
issues.
[SOURCE: Communications Daily]
(Not available online)

TELECOM

TEXAS HOUSE PASSES TELECOM BILL, BANS NEW MUNICIPAL WI-FI
The Texas state House approved an amended version of a pending telecom bill
(HB789) Wednesday that bans most new municipal wireless services. The vote
followed a bitter struggle between incumbent telephone companies opposing
government networks and consumer groups and economists favoring the
investments. The bill, now headed for the state Senate, grandfathers
existing and planned projects. It tells the state telecom regulators to
"conduct further study" and make recommendations for the next legislative
session. The bill would deregulate rates for retail telecom service bundles
this year and all retail rates by 2008. Rates for basic telephone service
sold on a stand-alone basis would be frozen until 2008. After that,
stand-alone basic service rates would be deregulated for any incumbent
telco reducing intrastate access charges to interstate levels by that time.
Another floor amendment would repeal the Telecom Infrastructure Fund fee on
phone bills that generates some $250 million annually for telecom and
technology projects. Supporters of repeal said most projects bankrolled by
this fund have been completed. Maintaining the fee would amount to imposing
a new telecom tax, they noted. Another amendment would restore consumer
protections excised from earlier editions of the bill, including PUC
authority to enforce rules and laws against slamming and cramming.
[SOURCE: Communications Daily, AUTHOR: Ian Martinez, Herb Kirchhoff]
(Not available online)

QUICKLY

LFAs QUESTION COMCAST'S RATES
Comcast may have to appeal rate-rollback orders from local franchising
authorities representing more than 1 million of its customers.
[SOURCE: Multichannel News, AUTHOR: Linda Haugsted]
http://www.multichannel.com/article/CA512694.html?display=Breaking+News&...
(free access for Benton's Headlines subscribers)

IN THE KNOW
The latest bimonthly update from Public Knowledge is now available. Learn
more about Grokster's day in court; Orphan Works; legislation introduced by
Reps Boucher and Doolittle Bill Reintroduced and the Broadcast Flag. Fun
for the entire family and you can't be the low, low price.
[SOURCE: Public Knowledge]
http://www.publicknowledge.org/news/intheknow/newsletter.2005-03-24.4934...
--------------------------------------------------------------
...and we are outta here. Have a great weekend; see you next week.
--------------------------------------------------------------
Communications-related Headlines is a free online news summary service
provided by the Benton Foundation (www.benton.org). Posted Monday through
Friday, this service provides updates on important industry developments,
policy issues, and other related news events. While the summaries are
factually accurate, their often informal tone does not always represent the
tone of the original articles. Headlines are compiled by Kevin Taglang
(headlines( at )benton.org) -- we welcome your comments.
--------------------------------------------------------------

Benton's Communications-related Headlines for 3/24/05

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

INTERNET REGULATION
FEC Signals Light Hand On Internet Campaigning
Lawyer: Brand X Case About Cable Blocking

QUICKLY -- Does Municipal Supply of Communications Crowd-Out Private=20
Communications Investment?; Music and Video Downloading Moves Beyond P2P;=20
Internet and Multimedia 2005: The On-Demand Media Consumer; Time Warner=20
Joins 'Indie' Film Company With HBO, New Line; Chinese Crack Down On=20
Student Web Sites

INTERNET REGULATION

FEC SIGNALS LIGHT HAND ON INTERNET CAMPAIGNING
The Federal Election Commission released a notice of proposed rulemaking=20
yesterday asking for public comment on whether to apply federal campaign=20
contribution limits on online political advertising campaigns. The=20
six-member panel also indicated it has not decided to impose, but is=20
leaning against imposing, restrictions on independent bloggers or bloggers=
=20
who work for political campaigns. The agency then plans to hold a public=20
hearing on the issue and then, this summer or possibly this fall, vote on=20
the final regulations.
[SOURCE: Washington Post, AUTHOR: Brian Faler]
http://www.washingtonpost.com/wp-dyn/articles/A61433-2005Mar23.html
(requires registration)
See NPRM at: http://www.fec.gov/agenda/2005/mtgdoc05-16.pdf
* More politicians write blogs to bypass mainstream media
Politicians are beginning to see blogs are more than forums for snoops. To=
=20
some, they are the ultimate cyberspace soapbox. They are looking to the Web=
=20
as a way to bypass the media and get out their own message - unvarnished=20
and unedited. "I'm not surprised that [blogs] are being adopted by people=20
inside the establishment -- they're perceived as very real, very intimate,"=
=20
says Amanda Lenhart of the Pew Internet and American Life Project. "It's a=
=20
way of having constituents feel very in touch."
[SOURCE: The Christian Science Monitor, AUTHOR: Mark Sappenfield]
http://www.csmonitor.com/2005/0324/p02s01-uspo.html
* Bloggers have rights too
Commentary from Rep John Conyers (D-MI)
http://news.com.com/Bloggers+have+rights+too/2010-1034_3-5632544.html?ta...
nefd.ac

LAWYER: BRAND X CASE ABOUT CABLE BLOCKING
The Supreme Court case on the regulation of cable=92s high-speed-data=
service=20
is =93massively important=94 and =93about search engines not having to pay=
cable=20
companies to get favored treatment or being discriminated against because=20
Yahoo! has paid for faster treatment and Google can't get it,=94 Media=
Access=20
Project President Andrew Jay Schwartzman said Wednesday. He wants the Court=
=20
to say that cable must provide nondiscriminatory access to competing=20
Internet-service providers not only as matter of law, but as a means of=20
preserving an Internet uncorrupted by commercial self-interest. =93It=92s=20
massively important. It is about the future of the Internet. It is about=20
the artist getting information out and not having it blocked,=94 he told=20
reporters.
[SOURCE: Multichannel News, AUTHOR: Ted Hearn]
http://www.multichannel.com/article/CA512632.html?display=3DBreaking+New...
ferral=3DSUPP
(free access for Benton's Headlines subscribers)
Also --
Supreme Court Hears Two Key Internet Cases
[SOURCE: Wall Street Journal, AUTHOR: Anne Marie Squeo=20
annemarie.squeo( at )wsj.com]
http://online.wsj.com/article/0,,SB111162931330288368,00.html?mod=3Dtoda...
s_marketplace
(requires subscription)

QUICKLY

DOES MUNICIPAL SUPPLY OF COMMUNICATIONS CROWD-OUT PRIVATE COMMUNICATIONS=20
INVESTMENT?
There are 2,007 municipalities across the United States that provide=20
electricity service to their constituents. Of these, over 600 provide some=
=20
sort of communications services to the community. An important policy=20
question is whether or not public investment in communications crowds out=20
private investment, or whether such investment encourages additional entry=
=20
by creating wholesale markets and economic growth. AES tests these two=20
hypotheses =AD the crowding out and stimulation hypothesis =AD using a=
recent=20
dataset for the state of Florida. It finds strong evidence favoring the=20
stimulation hypothesis, since public investment in communications network=20
increases competitive communications firm entry by a sizeable amount.
[SOURCE: Applied Economic Studies, AUTHOR: George S. Ford=
gford( at )aestudies.com]
http://www.aestudies.com/library/crowdout.pdf

MUSIC AND VIDEO DOWNLOADING MOVES BEYOND P2P
About 36 million Americans -- or 27% of Internet users -- say they download=
=20
either music or video files and about half of them have found ways outside=
=20
of traditional peer-to-peer networks or paid online services to swap their=
=20
files, according to the most recent survey of the Pew Internet & American=20
Life Project.
[SOURCE: Pew Internet & American Life Project, AUTHOR: Mary Madden, Lee=
Rainie]
http://www.pewinternet.org/PPF/r/153/report_display.asp

INTERNET AND MULTIMEDIA 2005: THE ON-DEMAND MEDIA CONSUMER
One in 10 Americans show a heavy preference to control their media and=20
entertainment, according to the latest study from Arbitron Inc. and Edison=
=20
Media Research -- Internet and Multimedia 2005: The On-Demand Media=20
Consumer. The study focuses on new devices and services that allow=20
Americans to exercise more control over the media they consume. Topics=20
include DVRs, portable MP3 players and other on-demand technologies.
[SOURCE: Arbitron]
http://www.arbitron.com/home/content.stm

TIME WARNER JOINS 'INDIE' FILM COMPANY WITH HBO, NEW LINE
In a move that delivers one of the hottest independent film distributors=20
into the arms of a media conglomerate, the small but powerful Newmarket=20
Films movie distribution business has been sold to two units of Time=20
Warner. The transaction removes one of the last truly independent film=20
distributors from the landscape.
[SOURCE: Wall Street Journal, AUTHOR: Kate Kelly kate.kelly( at )wsj.com and=20
Merissa Marr merissa.marr( at )wsj.com]
http://online.wsj.com/article/0,,SB111160878255187883,00.html?mod=3Dtoda...
s_marketplace
(requires subscription)
LATimes:=20
http://www.latimes.com/business/printedition/la-fi-newmarket24mar24,1,57...
6.story?coll=3Dla-headlines-pe-business

CHINESE CRACK DOWN ON STUDENT WEB SITES
Universities across China are tightening controls on student-run Internet=20
discussion forums as part of a Communist Party campaign to strengthen what=
=20
it calls "ideological education" on campuses. The crackdown has caused=20
widespread resentment among students and prompted at least two=20
demonstrations in recent days.
[SOURCE: Washington Post, AUTHOR: Philip P. Pan]
http://www.washingtonpost.com/wp-dyn/articles/A61334-2005Mar23.html
(requires registration)
--------------------------------------------------------------
Communications-related Headlines is a free online news summary service=20
provided by the Benton Foundation (www.benton.org). Posted Monday through=20
Friday, this service provides updates on important industry developments,=20
policy issues, and other related news events. While the summaries are=20
factually accurate, their often informal tone does not always represent the=
=20
tone of the original articles. Headlines are compiled by Kevin Taglang=20
(headlines( at )benton.org) -- we welcome your comments.
--------------------------------------------------------------

Benton's Communications-related Headlines for 3/23/05

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

INTERNET REGULATION
Brand X Ruling Offers Multiple Scenarios
McCain-Feingold Online

TELEVISION
Tribune's Strategy Is Buffeted By Order to Sell a TV Station
It's Hard to See the Harm in Buster the Bunny
CEA Releases Digital TV Survey

TELECOM
Level 3 Withdraws Access Charge Petition
Communications Policy for 2005 and Beyond
Municipal Wireless Grows Local Economies, AES Says
Philly Wi-Fi Project Has High Aims, Few Funding Details
Wireless Industry Loses On Civil Rights Issue In Supreme Court

QUICKLY -- Martins March on Washington; Texas Attorney General Sues Vonage
Over 911; Study Says TV Is No. 1 Advertising Medium

FROM THE BLOG-O-SPHERE

INTERNET REGULATION

BRAND X RULING OFFERS MULTIPLE SCENARIOS
Legg Mason Wood Walker analyst Blair Levin offers three possible scenarios
to the National Cable & Telecommunications Association vs. Brand X Internet
Services, a case pending before the Supreme Court. At stake is whether the
Federal Communications Commission properly classified cable-modem service
as an unregulated information service. 1) The Supreme Court could uphold
the FCC, in which case cable companies are winners, as well as the Baby
Bell phone companies, which want the same hands-off policy the FCC granted
cable in March 2002. But would the FCC then be able to set some regulation
-- like preventing the blocking of competing voice-over-Internet-protocol
traffic? 2) The Supreme Court could remand the case, ordering the Ninth
Circuit to review the FCC's ruling on the merits -- something the lower
court rejected based on the need to follow circuit precedent. A remand
would trigger a new litigation cycle. That would be a small win for cable,
but a loss for the Bells as the FCC and Congress would likely postpone
deregulatory moves. 3) The Supreme Court could uphold the Ninth Circuit. In
that case, the cable industry could file waivers seeking FCC removal of
open-access requirements. An FCC so inclined could approve cable petitions
simply by not acting within the 15-month statutory deadline. "Thus, in this
case, agency inaction would lead to deregulation. Although this would be an
available legal option to get around an adverse Supreme Court opinion, it
would generally be viewed as unseemly, as we do not believe the [FCC] is
likely to use this loophole," Levin said.
[SOURCE: Multichannel News, AUTHOR: Ted Hearn]
http://www.multichannel.com/article/CA512262.html?display=Breaking+News&...
(free access for Benton's Headlines subscribers)

MCCAIN-FEINGOLD ONLINE
[Commentary] The WSJ is critical of the Federal Election Commission's
inquiry into applying McCain-Feingold campaign-finance reform to
Internet-related activities. "One of the more exciting things about last
year's elections was how the Internet galvanized voter interest and turnout
-- from the Howard Dean grassroots movement to the bloggers who kept Dan
Rather on his toes. Some 75 million Americans are estimated to have used
the Internet to get political information in 2004. Too bad the very law
that was supposed to encourage this buzz may ultimately be its demise."
[SOURCE: Wall Street Journal, AUTHOR: Editorial Staff]
http://online.wsj.com/article/0,,SB111153913729187102,00.html?mod=todays...
(requires subscription)

TELEVISION

TRIBUNE'S STRATEGY IS BUFFETED BY ORDER TO SELL A TV STATION
In a blow to Tribune Company's strategy of owning newspapers and television
stations in the same markets, a federal judge in Connecticut ordered a
Tribune unit to comply with a regulatory order by selling a TV station
there "forthwith." Local crossownership was at the center of Tribune's
acquisition of Times Mirror Co. five years ago. Under Federal
Communications Commission cross-ownership rules, no license for a TV
station may be granted to a party that owns or controls a daily newspaper
in the same community. As a result, the FCC in 2001 ordered Tribune to sell
station WTXX, an affiliate of the WB Network in the nearby town of
Waterbury. The company received a couple of temporary waivers, but never a
permanent one. In 2003, a complaint was filed in U.S. District Court by
Neil Ellis, a real-estate developer and husband of Elizabeth Ellis,
publisher of the Manchester Journal Inquirer, a small newspaper just
outside Hartford. Ellis's suit challenged Tribune's compliance with the
2001 FCC order.
[SOURCE: Wall Street Journal, AUTHOR: Joseph T. Hallinan
joe.hallinan( at )wsj.com]
http://online.wsj.com/article/0,,SB111152929637786767,00.html?mod=todays...
(requires subscription)

IT'S HARD TO SEE THE HARM IN BUSTER THE BUNNY
[Commentary] Under pressure from conservatives led by Education Secretary
Margaret Spellings, PBS pulled today's planned episode of the children's
travelogue Postcards From Buster from the national schedule because the
family little Buster visits is led by two women. PBS, however, is a loosely
aligned system of independent stations, not a centrally run network, so
individual public broadcasting outlets were able to decide for themselves
whether to run the episode. Fifty-eight stations, covering slightly more
than half the nation, either already have done so or will do so today. How
exactly does the mere sight of two women living together put parents in an
awkward position? If children want to know why these Vermont kids have two
moms, isn't a possible answer "Because some people do these days," which
has the virtue of being both age-appropriate and true? As for people who
are worried that they might have to address more "sensitive" questions, do
those parents routinely describe the imagined sexual activities of every
couple that crosses the screen, gay and straight? How can we blame PBS when
we've structured the system so that it can't afford to be brave? We force
PBS to operate on a shoestring budget and then make it beg for what little
money it gets from three separate sources: government, corporations and
viewers. It can't afford to do anything that might offend any one of those
groups, so it most often does nothing -- bowing to pressure from whatever
group is complaining most loudly at the moment.
[SOURCE: USAToday, AUTHOR:Robert Bianco]
http://www.usatoday.com/printedition/life/20050323/first.lifea-.art.htm
Also see --
A Response to George Will
Dr. Mickie Edwardson, a longtime supporter of WUFT, Gainesville (FL) and an
emeritus faculty member of the UF College of Journalism & Communications,
responds to George Will's "Cut Buster Loose" column.
http://www.apts.org/

CONSUMER ELECTRONICS ASSOCIATION RELEASES DIGITAL TV SURVEY
Nearly half of all consumers plan to make their next television purchase a
high-definition (HDTV) television set, according to a new consumer survey
released by the Consumer Electronics Association (CEA). According to the
survey results, awareness of DTV terminology has sky-rocketed in the past
18 months. Nine out of 10 adults are now aware of at least one term used to
refer to high-definition television, such as "digital television" or
"HDTV." Seventy-six percent of U.S. adults say they are familiar with
details about the new TV sets. In addition, the percentage of adults who
are not familiar has fallen by half, from 42 percent in 2003 to 22 percent
today. Finally, 84 percent of consumers have seen an HDTV somewhere in the
last 12 months, whether it was in a retail store or in their own home. CEA
also surveyed consumers' reaction to the eventual analog cut-off. When
consumers who receive television signals, in part or in whole, via antenna
on their primary TV were asked what they would do if they could no longer
receive these signals with the antenna they currently use, 52 percent (up
from 46 percent in 2003) said they might buy a digital to analog set-top
box converter and 66 percent (up from 57 percent in 2003) said they might
subscribe to a cable or satellite service. Among those homes that receive
television signals only via antenna (12 percent of homes, according to this
survey), the figures are 48 percent and 56 percent, respectively. Only 21
percent of antenna-only households are very likely to "do nothing."
[SOURCE: Consumer Electronics Association Press Release]
http://www.ce.org/press_room/press_release_detail.asp?id=10719

TELECOM

LEVEL 3 WITHDRAWS ACCESS CHARGE PETITION
Level 3 had petitioned the FCC not to apply access charges to Internet
traffic terminating on the Public Switched Telephone Network (PSTN). The
firm urged reciprocal compensation instead. The FCC was facing a statutory
deadline to rule on the petition last week just as it was facing a
leadership transition as well, so Level 3 withdrew the petition, deciding
to live and fight another day. Analysts had expected the petition to be
denied or withdrawn. Legg Mason speculated that Level 3 and VoIP providers
might have feared a formal FCC denial could sap their legal position in
access charge disputes with the Bells and other ILECs. Legg Mason said the
FCC is likely to deal with the Level 3 issue in the broader context of the
intercarrier compensation proceeding, not expected to reach completion
before year's end. Level 3 and other VoIP providers had called the issue
too important to delay until the larger proceeding was completed. The Bells
and rural carriers argued against such "piecemeal" action.
[SOURCE: Communications Daily, AUTHOR: Edie Herman, Howard Buskirk]
(Not available online)
Reaction to the decision --
CompTel: http://www.comptelascent.org/news/recent-news/032205.html
NTCA: http://www.ntca.org/ka/ka-3.cfm?content_item_id=3088&folder_id=522
USTA: http://www.usta.org/news_releases.php?urh=home.news.nr2005_0322

COMMUNICATIONS POLICY FOR 2005 AND BEYOND
Reed E. Hundt, former chairman of the Federal Communications Commission
(FCC) and Gregory L. Rosston, deputy director of the Stanford Institute for
Economic Policy Research (SIEPR) and former deputy chief economist of the
FCC have put together their ideas for a clearly defined set of goals for
communications policy. The authors write that the United States has a
communications policy in place that does not state clearly its own goals,
yet applies regulations that greatly affect outcomes. A better
communications policy would substitute markets for regulation as a way to
determine both what is sold and what price is paid while continuing to be
conscious of specific market power concerns and obtaining efficiently
social benefits. Hundt and Rosston believe the Administration and Congress
should create a bipartisan and independent commission to suggest a complete
overhaul of the law and policy for communications, and to do so by mid-2005
(Stanford Institute for Economic Policy Research)
http://siepr.stanford.edu/papers/pdf/04-07.html

MUNICIPAL WIRELESS GROWS LOCAL ECONOMIES, AES SAYS
A new study by George Ford, founder of Applied Economic Studies (AES) finds
that the number of cities providing any public communications services has
grown 37% since 2001. The study concludes that these public networks are
great for new entrants into telephone service as they often piggyback on
public safety or educational networks at cheap, wholesale rates. At least
11 states are considering legislation that would bar municipal networks.
[SOURCE: Communications Daily, AUTHOR: Ian Martinez]
(Not available online)
LATimes:
http://www.latimes.com/news/printedition/asection/la-na-scotus23mar23,1,...

PHILLY WI-FI PROJECT HAS HIGH AIMS, FEW FUNDING DETAILS
Construction on Philadelphia's municipal wireless network starts this
summer and by fall 2006 the last area should be online, city chief
information officer Dianah Neff said. She said the project is not being
funded with city money, but did not indicate how it will remain
"cost-neutral" for city government. The city, at Mayor John Street's
request, launched the first municipal Wi-Fi hotspot on a trial basis last
June in Love Park. In 2 months 1,200 individuals had registered to use city
Wi-Fi through its website, spurred by "Wireless Friday" events to help
users configure their devices to access the hotspot. The city now has 6
pilot hotspots. Each costs $60,000-$70,000 to set up. Neff said the city is
responding to a lack of broadband access in some parts of the city and
hopes to revitalize its lagging economy with citywide wireless broadband.
[SOURCE: Communications Daily, AUTHOR: Greg Piper]
(Not available online)

WIRELESS INDUSTRY LOSES ON CIVIL RIGHTS ISSUE IN SUPREME COURT
The Supreme Court ruled unanimously Tues. that wireless carriers can't get
damages and attorneys fees under the civil rights laws from local
governments when wireless tower zoning decisions violate the Telecom Act.
It reversed a lower court decision, concluding civil rights remedies aren't
available for violations of Sec. 332 of the Act. "The wireless industry
lost big time on the civil rights issue," said Joe Van Eaton, an attorney
representing local governments. Attorney Gerry Lederer who also represents
local governments said the ruling meant "wireless companies will have fewer
incentives to challenge local tower citing decisions, and more incentive to
work with communities to develop siting solutions that protect legitimate
local interests... This could bode well for local governments who are now
facing challenges to local telecommunications franchising ordinances."
[SOURCE: Communications Daily, AUTHOR: Susan Polyakova]
(Not available online)

QUICKLY

MARTINS MARCH ON WASHINGTON (Last Item)
It's a big month for the Martin family of Washington. On March 16, Kevin J.
Martin was named chairman of the Federal Communications Commission.
Yesterday, Washington lawyer Catherine J. Martin, who has worked at the
Commerce Department and has been a spokeswoman for Vice President Cheney,
was named White House deputy communications director for policy and
planning. (I forget, is this Toby's position or Sam's?) This is Washington
power-couple level.
[SOURCE: Washington Post, AUTHOR: Al Kamen]
http://www.washingtonpost.com/wp-dyn/articles/A58178-2005Mar22.html
(requires registration)

TEXAS ATTORNEY GENERAL SUES VONAGE OVER 911
Texas Attorney General Greg Abbott Tuesday sued Vonage Holdings for failing
to properly inform consumers about possible shortcomings with its 911
service. Two Vonage subscribers were shot in a home invasion but could not
use 911 to seek help.
[SOURCE: Multichannel News, AUTHOR: Ted Hearn]
http://www.multichannel.com/article/CA512263.html?display=Breaking+News&...
(free access for Benton's Headlines subscribers)
WashPost: http://www.washingtonpost.com/wp-dyn/articles/A58598-2005Mar22.html
LATimes:
http://www.latimes.com/business/printedition/la-fi-911calls23mar23,1,303...

STUDY SAYS TV IS #1 ADVERTISING MEDIUM
According to a study conducted by Roper Public Affairs & Media and
sponsored by marketing company The MediaCenter, TV reaches 94 percent of
all adults, radio 73%, and Internet 42%.
[SOURCE: TVWeek, AUTHOR: Wayne Friedman]
http://www.tvweek.com/news.cms?newsId=7501
(requires free registration)

FROM THE BLOG-O-SPHERE

An Ally's Undemocratic Media
Rory O'Connor on Japan's media.
(Media Is Plural)
http://www.roryoconnor.org/blog/

From Meet the Press to Be the Press
The Economist just said it: the "the traditional notion that the media play
a special role in informing people is breaking down." Rising up: government
as a "purely neutral" news provider, credible where a sinking press corps
is not.
(PressThink)
http://journalism.nyu.edu/pubzone/weblogs/pressthink/

OurMedia.org
There's a new home for grassroots media. OurMedia.org provides free storage
and bandwidth for your videos, audio files, photos, text and software.
http://www.ourmedia.org/
--------------------------------------------------------------
Communications-related Headlines is a free online news summary service
provided by the Benton Foundation (www.benton.org). Posted Monday through
Friday, this service provides updates on important industry developments,
policy issues, and other related news events. While the summaries are
factually accurate, their often informal tone does not always represent the
tone of the original articles. Headlines are compiled by Kevin Taglang
(headlines( at )benton.org) -- we welcome your comments.
--------------------------------------------------------------

Benton's Communications-related Headlines for 3/22/05

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

OWNERSHIP
Media Consolidation Over? Or Just Getting Started?
Tribune Ordered to Divest in TV Station
News Corp. Acquires All of Fox
Diller to Add Ask Jeeves To Network of Web Sites

VIDEO NEWS RELEASES
Broadcasters Alerted About VNRs and Possible Penalties
Activists Urge FCC to Investigate VNRs
State is Committed to VNR ID's

TELEVISION/BROADCASTING
For Congress, Decency=92s a Basic Part of the Package
DBS Firms Rebut NCTA on FCC Fees
Emergencies and People with Disabilities
Closed-Captions Translate News Into Spanish

TELECOM
Verizon: DSL-Phone Bundle OK with FCC
I Ain't Got Your Stinkin' Phone Service

NEW RESEARCH
Reinventing Media Activism
Protecting Teens Online
College Searching Online
More Wired Seniors Than Ever
2005 MediaWorks Funder Survey

QUICKLY -- Kevin Martin's FCC; On the Media; Radio Grandma; Cheaper Phone=20
Bills?; Utah Governor Signs Net-porn Bill; E-mail authentication

OWNERSHIP

MEDIA CONSOLIDATION OVER? OR JUST GETTING STARTED?
You can almost here the dueling banjos -- Slate's Jack Shafer picks up on=20
the possible split up of Viacom to suggest that media ownership may be=20
"deconsolidating." (Apologies to my high school English teacher, Mrs V.)=20
While Reuters' Kenneth Li begins his article, "Rumors of the global media=20
conglomerate's demise may have been greatly exaggerated." I'll let you be=20
the judge. [And if I've got that song stuck in your head, check out this --=
=20
http://www.laserp.com/dueling_banjos.htm (yeah, I don't get the penguin=20
either)].
[SOURCE: Slate/Reuters]
http://slate.msn.com/id/2115066/
http://www.reuters.com/newsArticle.jhtml?type=3DtopNews&storyID=3D7952689
* Media Firms Piece Together New Strategies
http://www.washingtonpost.com/wp-dyn/articles/A55379-2005Mar21.html

TRIBUNE ORDERED TO DIVEST IN TV STATION
The US Appeals Court (Connecticut) has ordered the Tribune Company to=20
divest WTXX, a WB affiliate in Waterbury (CT), to comply with FCC=20
cross-ownership rules. Tribune has sought and received multiple waivers=20
from the FCC to hold on to WTXX, which Tribune claims had financial=20
troubles. Tribune also owns WTIC, a Fox affiliate in Hartford. =93Tribune=
=92s=20
numerous applications for extensions of time in which to come into=20
compliance with that rule implicitly recognize that it was failing to=20
comply with that rule,=94 the court said. Tribune plans to appeal, said=20
Tribune VP Shaun Sheehan.
[SOURCE: Communications Daily, AUTHOR: Tania Panczyk-Collins]
(Not available online)
LATimes:=20
http://www.latimes.com/business/printedition/la-fi-rup22.6mar22,1,442911...
ory?coll=3Dla-headlines-pe-business

NEWS CORP ACQUIRES ALL OF FOX
Rupert Murdoch's News Corp. persuaded Fox Entertainment Group Inc. minority=
=20
holders to accept $6.6 billion for their stock, giving him full control of=
=20
assets including Fox News Channel and the 20th Century Fox film studio.=20
Purchasing the stock gives News Corp. all of Fox's $12.2 billion in annual=
=20
sales. Getting Fox businesses including TV stations and the Fox sports=20
cable channels also gives Murdoch assets to trade with Liberty Media Corp.=
=20
Chairman John Malone to reduce Liberty's 18% voting stake in News Corp.
[SOURCE: Bloomberg News]
http://www.latimes.com/business/printedition/la-fi-fox22mar22,1,5031621....
y?coll=3Dla-headlines-pe-business
(requires registration)

DILLER TO ADD ASK JEEVES TO NETWORK OF WEB SITES
Barry Diller's IAC/InterActive Corp. will pay $1.85 billion in stock to=20
acquire Ask Jeeves Inc. Ask Jeeves, the country's fifth-most-popular search=
=20
site, has differentiated itself from competitors by allowing users to pose=
=20
queries as if they were asking a friend or relative. For the nearly 10=20
years it has existed, the company's dapper cartoon butler has stood ready,=
=20
his hands on his lapels, to provide answers. Ask Jeeves has long been=20
considered to have strong technology but has lacked the capital of a=20
Google, Yahoo or MSN. With the backing of Diller, who also owns travel site=
=20
Expedia, online matchmaker Match.com, event sales company Ticketmaster,=20
local guide Citysearch and many other prominent Web properties, some think=
=20
the company is ready to become a more powerful player in the industry.
[SOURCE: Washington Post, AUTHOR: Ariana Eunjung Cha]
http://www.washingtonpost.com/wp-dyn/articles/A55577-2005Mar21.html
(requires registration)
USAToday:=20
http://www.usatoday.com/printedition/money/20050322/2b_askjeeves22.art.htm
NYTimes: http://www.nytimes.com/2005/03/22/technology/22search.html
LATimes:=20
http://www.latimes.com/business/printedition/la-fi-jeeves22mar22,1,72277...
tory?coll=3Dla-headlines-pe-business
Also see --
* Net stocks rebounding all over the place
http://www.usatoday.com/printedition/money/20050322/1b_brink22.art.htm

VIDEO NEWS RELEASES

BROADCASTERS ALERTED ABOUT VNRs AND POSSIBLE PENALTIES
With Members of Congress and thousands of citizens contacting the FCC=20
asking for an investigation into the use of video news releases (VNRs), the=
=20
National Association of Broadcasters is warning members to proceed with=20
caution -- at least until the FCC rules on use of VNRs. =93Informal=20
conversations with FCC staff indicate that failure to properly disclose=20
that the VNR has been government furnished may result in a sponsorship=20
identification violation,=94 the NAB said Monday. FCC rules say that with=20
political broadcast matter or matter related to a controversial issue of=20
public importance furnished either directly or indirectly for broadcast,=20
stations must reveal the source at the broadcast=92s beginning and=
conclusion.
[SOURCE: Communications Daily, AUTHOR: Tania Panczyk-Collins]
(Not available online)
See also http://www.onthemedia.org/

ACTIVISTS URGE FCC TO INVESTIGATE VNRs
Free Press and the Center for Media and Democracy (publisher of PR Watch)=20
filed a complaint with the Federal Communications Commission Monday asking=
=20
the agency to investigate broadcasters that air government-produced news=20
reports without identifying their source.
[SOURCE: Broadcasting&Cable]
http://www.broadcastingcable.com/article/CA512110?display=3DBreaking+New...
ferral=3DSUPP
(free access for Benton's Headlines subscribers)
* Concerned citizens flood FCC with demands to stop fake news
http://www.freepress.net/news/release.php?id=3D56

STATE COMMITTED TO VNR ID'S
In a speech Monday night, Robert Tappan, principal deputy assistant=20
secretary of state, says the State Department identifies all its video news=
=20
releases. He said their use must be guided by ethical rules, with=20
credibility the key to getting State's message across and transparency and=
=20
attribution the keys to that credibility.
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
http://www.broadcastingcable.com/article/CA512127?display=3DBreaking+New...
ferral=3DSUPP
(free access for Benton's Headlines subscribers)

TELEVISION/BROADCASTING

FOR CONGRESS, DECENCY'S A BASIC PART OF THE PACKAGE
For years, cable operators have been selling Cable News Network, Discovery=
=20
Channel and MTV: Music Television in a large, one-size-fits-all package,=20
elevating efficiency over consumer choice and flexibility. But if two=20
powerful members of Congress get their way, cable=92s business model, which=
=20
calls on customers to buy it all and block the bad stuff, could wind up in=
=20
the Smithsonian next to shards of the Berlin Wall. Senate Commerce=20
Committee Chairman Ted Stevens (R-Alaska) and House Commerce Committee=20
Chairman Joe Barton (R-Texas) say it is unacceptable that children can=20
access objectionable cable programming on a random basis and they believe=20
cable=92s channel-blocking efforts are insufficient. Aides to Sen Stevens=20
called cable companies and were dissatisfied with the experience. They=20
found blocking technology complicated and access codes frustrating to use.=
=20
One cable company contacted wanted to charge a monthly fee to provide=20
blocking technology. Lawmakers are looking at tiering, ratings and channel=
=20
rebates as possible ways to give consumers more control over the content=20
that comes into their homes.
[SOURCE: Multichannel News, AUTHOR: Ted Hearn]
http://www.multichannel.com/article/CA511866.html&referral=3DSUPP
(free access for Benton's Headlines subscribers)

DBS FIRMS REBUT NCTA ON FCC FEES
The Federal Communications Commission in 2005 is requiring cable operators=
=20
to pay $48 million to fund the agency=92s operations, while the commission=
=20
intends to collect just $1.9 million combined from EchoStar Communications=
=20
and DirecTV. The National Cable & Telecommunications Association has told=20
the FCC that changes in the regulatory landscape compel direct-broadcast=20
satellite operators to pay more. But EchoStar and DirecTV are the=20
challenging cable-industry claims that DBS providers are paying less than=20
their fair share in regulatory fees to the FCC.
[SOURCE: Multichannel News, AUTHOR: Ted Hearn]
http://www.multichannel.com/article/CA511981.html?display=3DBreaking+New...
ferral=3DSUPP
(free access for Benton's Headlines subscribers)

EMERGENCIES AND PEOPLE WITH DISABILITIES
In light of recent enforcement actions by the FCC for apparent violations=20
of the Commission's access to emergency information rule, the Commission=20
issued a Public Notice to again remind video programming distributors --=20
including broadcasters, cable operators, and satellite television services=
=20
-- of their obligation to make emergency information accessible to persons=
=20
with hearing and vision disabilities. The Consumer & Governmental Affairs=20
Bureau will continue to closely monitor complaints alleging violations of=20
the access to emergency information rule, and will promptly forward=20
appropriate complaints to the Enforcement Bureau for possible enforcement=20
action. If you have a complaint, you can first contact the video=20
programming distributor, although you are not required to do so. You can=20
also complain directly to the FCC. Your complaint should include: 1) The=20
name of the video programming distributor (e.g. broadcast station, cable=20
company, or DBS provider) against whom the complaint is alleged; 2) The=20
date and time of the omission of emergency information; and 3) The type of=
=20
emergency. Consumer & Governmental Affairs Bureau Contact: Traci Randolph,=
=20
(202) 418-0569 (voice); (202) 418-0537 (TTY); e-mail traci.randolph( at )fcc.gov
[SOURCE: Federal Communications Commission]
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DA-05-688A1.doc

CLOSED-CAPTIONS TRANSLATE NEWS INTO SPANISH
Fourteen stations are broadcasting local news with Spanish translations=20
over the closed-captioning system. The service is provided by Translate TV,=
=20
a two-year old Ohio company that uses customized technology to translate a=
=20
station's newscast in real time and pump out translations. Most televisions=
=20
have such capabilities; stations provide English captioning on one of two=20
closed-captioning channels. Translate TV taps into the second, referred to=
=20
as CC2. Stations see captioning as more than a public service; it can also=
=20
be a revenue driver. Local broadcasters are selling sponsorships to fund=20
the effort. In return, the sponsor usually receives promotions announcing=20
its involvement.
[SOURCE: Broadcasting&Cable, AUTHOR: Allison Romano=
aromano( at )reedbusiness.com]
http://www.broadcastingcable.com/article/CA511879?display=3DNews&referra...
SUPP
(free access for Benton's Headlines subscribers)

TELECOM

VERIZON: DSL-PHONE BUNDLE OK WITH FCC
Verizon Communications=92 policy of terminating digital-subscriber-line=20
service at the same time a customer cancels local-phone service is=20
consistent with federal regulations, the Baby Bell told the Federal=20
Communications Commission last week. Verizon, the nation=92s largest local=
=20
phone company, said it had explained its bundling policy to the FCC before=
=20
in a long-distance entry application and =93the [FCC] reviewed it and=20
approved it.=94
[SOURCE: Multichannel News, AUTHOR: Ted Hearn]
http://www.multichannel.com/article/CA511975.html?display=3DBreaking+New...
ferral=3DSUPP
(free access for Benton's Headlines subscribers)

I AIN'T GOT YOUR STINKIN' PHONE SERVICE
[Commentary] Bunnie Riedel wants to stay naked, darn it. The FCC, we=20
learned yesterday, is planning on suspending public utility commission=20
regulations in California, Florida, Georgia, Kentucky and Louisiana that=20
require phone companies to offer DSL separate from phone service (this is=20
called "Naked DSL"). Riedel write, "The implications of this FCC decision=20
go beyond BellSouth=92s insatiable desire to keep itself out of bankruptcy.=
=20
Is the FCC going to follow suit with the cable ops? You can't get cable=20
modem unless you buy cable? There are actual living, breathing human beings=
=20
in our great nation who do not want cable television, they are perfectly=20
satisfied with four channels and rabbit ears. I talked to one mother this=20
weekend who told me that they do get modem but not the cable because she=20
doesn't want her kids watching t.v. all day. Makes sense, I did the same=20
thing with my kids. Even if you don't have kids some people find paying for=
=20
90 channels with nothing on a waste of money."
[SOURCE: Riedel Communications]
http://www.riedelcommunications.blogspot.com/www.riedelcommunications.blog=
spot.com=20

NEW RESEARCH

REINVENTING MEDIA ACTIVISM
A key concept informing this report, which shares the results of research=20
conducted by Syracuse University's Convergence Center project and supported=
=20
by the Ford Foundation's Knowledge, Creativity and Freedom Program, is that=
=20
of citizen collective action: "In a free and democratic society, citizens=20
influence the political process not just by passively voting....They also=20
organize to continuously shape policy and legal outcomes, and to express=20
their opinions to public officials so that the officials will make=20
decisions that reflect their own needs, problems and interests. Most of=20
this lobbying is driven by economic interests....But there are also=20
citizens who organize to promote some concept of the public interest. These=
=20
groups promote ideas, ideologies, values, policies, laws or regulations=20
that they believe will benefit society as a whole." In short, these groups=
=20
seek to support and sustain the common good.
AUTHORS: Milton Mueller, Brenden Kuerbis & Christiane Pag=E9
http://www.comminit.com/strategicthinking/st2005/thinking-969.html

PROTECTING TEENS ONLINE
More than half of American families with teenagers use filters to limit=20
access to potentially harmful content online. But both teens and parents=20
believe that teens do things on the Internet that their parents would not=20
approve of.
[SOURCE: Pew Internet & American Life Project, AUTHOR: Amanda Lenhart]
http://www.pewinternet.org/PPF/r/152/report_display.asp

COLLEGE SEARCHING ONLINE
Fully 45% of American adult Internet users and 57% of online teenagers have=
=20
used the Internet when they search for colleges or other schools to attend.=
=20
It's quicker -- but not as fun -- as those Spring Break college campus=
tours.
[SOURCE: Pew Internet & American Life Project]
http://www.pewinternet.org/PPF/p/1064/pipcomments.asp

MORE WIRED SENIORS THAN EVER
There has been a steady increase over the past year in the percentage of=20
older Americans who go online. In Pew's January 2005 phone survey, 26% of=20
Americans age 65+ report Internet access, compared to the 22% of older=20
Americans described in Pew's March 2004 report.
[SOURCE: Pew Internet & American Life Project, AUTHOR: Susannah Fox]
http://www.pewinternet.org/PPF/p/1062/pipcomments.asp

2005 MEDIAWORKS FUNDER SURVEY
To help inform media grantmaking strategies, MediaWorks offers this=20
snapshot of media funding after surveying foundations, private donors,=20
investors, and government agencies in January 2005.
http://www.mediawks.org

QUICKLY

KEVIN MARTIN'S CHALLENGE/MARTIN TAKES CHARGE AT FCC
A look at Kevin Martin and the challenges he faces as he takes over the FCC=
=20
from publications that target people in the radio and TV business.
[SOURCE: Broadcasting&Cable and Multichannel News]
http://www.broadcastingcable.com/article/CA511792?display=3DNews&referra...
SUPP
http://www.multichannel.com/article/CA511868.html?display=3DTop+Stories&...
rral=3DSUPP
(free access for Benton's Headlines subscribers)

FCC SILENT AS MARTIN HITS THE BOOKS
New FCC chairman Kevin Martin issued an email last Friday to FCC senior=20
staff, ordering them not to release any major staff-level decisions or=20
public notices until Chairman Martin's office gets a chance to review them.=
=20
Staff also have been asked not to give speeches on behalf of the Commission=
=20
or make other public statements purportedly reflecting the commission's=20
views "until further notice."
[SOURCE: Broadcasting&Cable, AUTHOR: Bill McConnell]
http://www.broadcastingcable.com/article/CA512088?display=3DBreaking+New...
ferral=3DSUPP
(free access for Benton's Headlines subscribers)

ON THE MEDIA
WNYC's On the Media has a number of stories available on its website this=20
week on video news releases and the broadcasters that air them, our new FCC=
=20
Chairman, and the latest report from the Project for Excellence in=20
Journalism. Find links to audio files at the URL below.
[SOURCE: On the Media]
http://www.onthemedia.org/

RADIO GRANDMA
WVLP-FM, a low-power community radio station in Valparaiso (IN) has aired=20
"Stories with Old Nana" since September 2004. The show features Nancy=20
Pekarek reading pictures books to children.
[SOURCE: Connect for Kids, AUTHOR: Susan Phillips]
http://www.connectforkids.org/articles/radio_grandma

CHEAPER PHONE BILLS ON THE HORIZON?
[Commentary] I can't suggest you read this, but McCullagh plays fast and=20
loose with facts here to suggest elimination of the E-rate program for a=20
$10/year savings on your phone bill.
[SOURCE: C-Net|News.com, AUTHOR: Declan McCullagh]
http://news.com.com/Cheaper+phone+bills+on+the+horizon/2010-1071_3-56261...
tml?tag=3Dnefd.ac

UTAH GOVERNOR SIGNS NET-PORN BILL
Utah Governor Jon Huntsman signed a bill on Monday that would require=20
Internet providers to block Web sites deemed pornographic and could also=20
target e-mail providers and search engines. The controversial legislation=20
will create an official list of Web sites with publicly available material=
=20
deemed "harmful to minors." Internet providers in Utah must provide their=20
customers with a way to disable access to sites on the list or face felony=
=20
charges.
[SOURCE: C-Net|News.com, AUTHOR: Declan McCullagh]
http://news.com.com/Utah+governor+signs+Net-porn+bill/2100-1028_3-562906...
ml?tag=3Dnefd.top

E-MAIL AUTHENTICATION. THEN WHAT?
[Commentary] A look at how email authentication could be a solution to spam=
=20
and e-mail fraud.
[SOURCE: C-Net|News.com, AUTHOR: Sendmail CEO Dave Anderson]
http://news.com.com/E-mail+authentication.+Then+what/2010-1071_3-5629318...
l?tag=3Dnefd.ac
--------------------------------------------------------------
Communications-related Headlines is a free online news summary service=20
provided by the Benton Foundation (www.benton.org). Posted Monday through=20
Friday, this service provides updates on important industry developments,=20
policy issues, and other related news events. While the summaries are=20
factually accurate, their often informal tone does not always represent the=
=20
tone of the original articles. Headlines are compiled by Kevin Taglang=20
(headlines( at )benton.org) -- we welcome your comments.
--------------------------------------------------------------

Benton's Communications-related Headlines for 3/21/05

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

MEDIA & SOCIETY
Let's Define the Public Interest
=91Reports': Not Necessarily the News

OWNERSHIP
FCC Considers Options for Expanding LPFM Service
If Studios Get to Curb TV Shows on the Web, Let's Ask Quid Pro Quo
Diller's IAC Nears Deal for Jeeves
Shari Redstone Waits in Wings To Head Viacom

INTERNET REGULATION
FEC Considers Restricting Online Political Activities
Justices Take Up Future of Net Access
Source: FCC to Dress 'Naked' DSL

QUICKLY -- Journalistic Issues in Apple Lawsuit

MEDIA & SOCIETY

LET'S DEFINE THE PUBLIC INTEREST
[Commentary] The authors, two past-members of a Presidential Advisory=20
Committee, call on the FCC to define the public interest obligations of=20
digital television broadcasters. Public-interest obligations, they write,=20
encourage broadcasters to reach the greatest number of viewers with content=
=20
that is not peripheral but central to their lives. They conclude: "If=20
broadcasting is continually seen as just a business, like the toaster=20
business, a short-sighted focus on narrow, profitable market segments may=20
prevail. The result will be less and less programming that benefits the=20
broadest segments of society. And TV could soon be seen as just a big box=20
filled with yesterday's technology. When broadcasters embrace their roles=20
as journalists and protectors and proponents of the public interest, we=20
benefit far beyond what TV stations can recover in advertising: People are=
=20
engaged as citizens; government power is checked; waste and fraud are=20
exposed; and we can value our televisions as much as broadcasters value our=
=20
well-being. Without public-interest obligations, our country's most=20
time-honored broadcast values of competition, diversity, localism and=20
democracy might all be toast."
[SOURCE: Broadcasting&Cable, AUTHOR: Charles Benton and Jim Goodmon]
http://www.broadcastingcable.com/article/CA511880.html?display=3DOpinion...
erral=3DSUPP
(free access for Benton's Headlines subscribers)

'REPORTS': NOT NECESSARILY THE NEWS
Former White House press secretary Michael McCurry says the media, not=20
President Bush, are to blame for airing government-produced =93video news=20
releases=94 that mimic independent TV news reports. He said the intent is=
not=20
to mislead. They do it, he said, out of =93desperation that the public out=
=20
there doesn't have a clue what it is that people are doing with their tax=20
dollars =85 because you all (the media) aren't covering that.=94 McCurry=
said=20
the media have forced the government to =93package=94 the news, and=
reporters=20
should =93try covering the things that the government really does and report=
=20
on things that really work instead of assuming that everything is waste,=20
fraud and abuse.=94 Barbara Cochran, president of the Radio-Television News=
=20
Directors Association, said the government has an obligation to identify=20
its VNRs. But she said =93the burden is on newsrooms to make sure viewers=20
know where they're getting this material.=94 Last week, Sen. John Kerry, the=
=20
2004 Democratic presidential nominee, asked the Federal Communications=20
Commission to investigate how often TV stations had broadcast =93news clips=
=20
produced by the federal government.=94
[SOURCE: USAToday, AUTHOR: Mark Memmott]
http://www.usatoday.com/printedition/news/20050321/a_vnrs21.art.htm

OWNERSHIP

FCC CONSIDERS OPTIONS FOR EXPANDING LPFM SERVICE
On Thursday, the FCC adopted a order and notice of proposed rulemaking that=
=20
modifies the rules governing low power FM (LPFM) radio service, seeking=20
comment on a number of ownership and technical issues for this service and=
=20
imposing an immediate six-month freeze on application grants of FM=20
translator new station construction permits. The Commission seeks comment=20
on the following issues related to LPFM ownership and application rules: 1)=
=20
Whether LPFM authorizations should be transferable and, if so, whether=20
transferability should be broadly permitted or limited to special=20
circumstances; 2) Whether to extend from 30 days to 90 days the deadline=20
for submission of a time-share proposal after a mutually exclusive group of=
=20
LPFM applicants is announced; 3) Whether to permit renewal of licenses=20
granted under involuntary time-sharing, successive license term procedure;=
=20
4) Whether to permanently restrict ownership of LPFM stations to local=20
entities; and 5) Whether to permanently prohibit multiple ownership of LPFM=
=20
stations.
[SOURCE: Federal Communications Commission]
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-257524A1.doc
Order: http://hraunfoss.fcc.gov/edocs_public/attachmatch/FCC-05-75A1.doc
Commissioner Copps:=20
http://hraunfoss.fcc.gov/edocs_public/attachmatch/FCC-05-75A2.doc
Commissioner Adelstein:=20
http://hraunfoss.fcc.gov/edocs_public/attachmatch/FCC-05-75A3.doc

IF STUDIOS GET TO CURB TV SHOWS ON THE WEB, LET'S ASK QUID PRO QUO
Commentary] At a hearing last month, two of the three judges on the U.S.=20
Circuit Court of Appeals in Washington appeared to agree with the=20
Electronic Frontier Foundation, Public Knowledge, the American Library=20
Association and other groups who argue that the Federal Communications=20
Commission overstepped its congressionally derived authority when it=20
promulgated the "broadcast flag" rule, a technical modification to a=20
broadcast digital TV signal that prevents a recording of a show from being=
=20
uploaded to the Internet. Picking up on the scent of defeat, the Hollywood=
=20
lobby is moving the battle to Congress. Gomes supports --or, at least, does=
=20
not oppose -- the broadcast flag, but thinks Hollywood should provide a=20
tradeoff -- allowing for the creation of legal services that facilitate=20
downloading of video entertainment. He concludes: "The studios must pick=20
some sort of digital-rights-management software to protect their=20
intellectual property, and then agree on a reasonable licensing system that=
=20
will allow people to legally buy those products online.
[SOURCE: Wall Street Journal, AUTHOR: Lee Gomes lee.gomes( at )wsj.com]
http://online.wsj.com/article/0,,SB111135923839384566,00.html?mod=3Dtoda...
s_marketplace
(requires subscription)

DILLER'S IAC NEARS DEAL FOR JEEVES
An announcement could come today that Barry Diller's IAC/InterActiveCorp=20
has purchased the fifth-largest Web-search service, Ask Jeeves, for around=
=20
$2 billion in stock, marking an aggressive move by the electronic-commerce=
=20
company into the Internet's most competitive arena. A deal would highlight=
=20
the strong interdependence of search and Web commerce online. Web sites=20
such as IAC's Expedia and Match.com get much of their online traffic from=20
search engines, with consumers clicking either on the search results or=20
search-related ads the sites have bought. The tie-up with a search engine=20
could make their approach to getting customers through search more=20
effective. Ask Jeeves garners 70% of its revenue from advertisements=20
brokered by Google, but placed on its sites. Over time, IAC, could shake up=
=20
the two search engines' commercial relationship.
[SOURCE: Wall Street Journal, AUTHOR: Dennis K. Berman=20
dennis.berman( at )wsj.com & Kevin J. Delaney kevin.delaney( at )wsj.com]
http://online.wsj.com/article/0,,SB111136320151184666,00.html?mod=3Dtoda...
s_page_one
(requires subscription)
Also in --
NYTimes: http://www.nytimes.com/2005/03/21/business/21deal.html

SHARI REDSTONE WAITS IN WINGS TO HEAD VIACOM
Shari Redstone, daughter of Viacom Chairman Sumner Redstone, is playing an=
=20
increasingly active role in the company. Her main job is running the=20
company's theater chain in Boston, but she's also on the Viacom board and=20
has lately been attending more internal meetings and helping her father=20
schmooze investors. Mr Redstone has promised to step down as CEO of Viacom=
=20
by 2007, but has also indicated the company may split into two and he might=
=20
let Co-Presidents Tom Freston and Les Moonves run those companies. He'll=20
remain the controlling shareholder and chairman and pass that on to Ms=20
Redstone when he dies.
[SOURCE: Wall Street Journal, AUTHOR: Carol Hymowitz carol.hymowitz( at )wsj.com=
=20
& Joe Flint joe.flint( at )wsj.com]
http://online.wsj.com/article/0,,SB111136989554384823,00.html?mod=3Dtoda...
s_marketplace
(requires subscription)
More on Viacom in NYTimes:=20
http://www.nytimes.com/2005/03/21/business/media/21mtv.html

INTERNET REGULATION

FEC CONSIDERS RESTRICTING ONLINE POLITICAL ACTIVITIES
The Federal Election Commission has begun considering whether to issue new=
=20
rules on how political campaigns are waged on the Internet, a regulatory=20
process that is expected to take months to complete but that is already=20
generating considerable angst online. The agency is weighing whether -- and=
=20
how -- to impose restrictions on a host of online activities, including=20
campaign advertising and politically oriented blogs. The rise of the=20
Internet as a political tool, the variety of ways in which it can be used=20
to promote a campaign and the fact that most federal election laws were=20
written long before the Internet became a household word have combined to=20
present the agency's commissioners with plenty of knotty legal questions to=
=20
consider. Should bloggers who work for political campaigns, for example, be=
=20
required to disclose that relationship? Should their writings include a=20
disclaimer indicating that they were paid for by a campaign? What if a=20
campaign supporter links his Web site to a candidate's home page? Is that=20
considered a campaign contribution subject to government regulation? What=20
if an independent blogger endorses a candidate? Or posts a campaign's news=
=20
release? Are those contributions?
[SOURCE: Washington Post, AUTHOR: Brian Faler]
http://www.washingtonpost.com/wp-dyn/articles/A51986-2005Mar20.html
(requires registration)

JUSTICES TAKE UP FUTURE OF NET ACCESS
Brand X Internet Services is leading a legal attack on the cable TV=20
industry and federal regulators. The Brand X challenge has ended up in the=
=20
U.S. Supreme Court, becoming what experts call one of the most important=20
telecommunications cases before the high court in recent years. Brand X and=
=20
other Internet service providers, including giant EarthLink, want access to=
=20
cable TV companies' high-speed connections to serve customers, the way they=
=20
do over local phone lines. The Internet companies say access rights are=20
crucial to their survival. Customers are increasingly abandoning slow=20
dial-up connections in favor of high-speed service, which in a majority of=
=20
cases is sold by cable operators. The ISPs also contend that a loss to the=
=20
cable industry would clear the way for approval of a stalled Federal=20
Communications Commission rule giving phone carriers the same right to deny=
=20
access to Internet service providers. (see story below) That would leave=20
customers with only cable and phone monopolies to provide Internet service.=
=20
Oral arguments are scheduled for March 29. A decision is likely this summer.
[SOURCE: Los Angeles Times, AUTHOR:James S. Granelli]
http://www.latimes.com/business/printedition/la-fi-brandx21mar21,1,40819...
tory?coll=3Dla-headlines-pe-business
(requires registration)

SOURCE: FCC TO DRESS 'NAKED' DSL
As early as today, the Federal Communications Commission may suspend public=
=20
utility commission regulations in Florida, Georgia, Kentucky, California=20
and Louisiana that forced Bellsouth to sell high speed Internet access --=20
DSL, or digital subscriber line service -- separate from its local phone=20
service. In the past, the two services had been inextricably linked. The=20
FCC decision would have a profound effect on the few thousand people in the=
=20
four states who now get "naked" DSL from Bellsouth. It would also affect=20
the millions of homeowners who would go with a separate DSL offering given=
=20
the chance. The possible precedent for the Bells could even affect cable=20
operators that sell broadband and telephony on fiber-optic networks,=20
services that are much faster than the Bells' DSL.
[SOURCE: C-Net|News.com, AUTHOR: Ben Charny]
http://news.com.com/Source+FCC+to+dress+naked+DSL/2100-1037_3-5627726.ht...
ag=3Dnefd.top

QUICKLY
Dancing Around Journalistic Issues in a Lawsuit Over Apple Secrets
DANCING AROUND JOURNALISTIC ISSUES IN A LAWSUIT OVER APPLE SECRETS
A Santa Clara County Superior Court decision did not address whether a=20
company's interest in protecting corporate secrets trump any privilege=20
protecting the identity of a reporter's sources.
[SOURCE: New York Times, AUTHOR: Jonathan Glater]
http://www.nytimes.com/2005/03/21/technology/21law.html
(requires registration)
See more -- http://www.nytimes.com/2005/03/21/technology/21apple.html
Commentary: Apple ruling puts all of us in danger
http://www.mercurynews.com/mld/mercurynews/business/technology/11170453.htm
--------------------------------------------------------------
Communications-related Headlines is a free online news summary service=20
provided by the Benton Foundation (www.benton.org). Posted Monday through=20
Friday, this service provides updates on important industry developments,=20
policy issues, and other related news events. While the summaries are=20
factually accurate, their often informal tone does not always represent the=
=20
tone of the original articles. Headlines are compiled by Kevin Taglang=20
(headlines( at )benton.org) -- we welcome your comments.
--------------------------------------------------------------