June 2005

Proceedings of the CAC

June 29, 2005 -- The Benton Foundation is a member of the newly-recharted Consumer Advisory Committee (CAC) at the Federal Communications Commission. The Benton Foundation will keep you up to date on the meetings and decisions of the CAC. Check here for a growing repository of CAC proceedings.

Benton Releases 2004 Annual Report PDF or HTML

Benton's Communications-related Headlines for 6/24/05

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

THE BATTLE OVER PUBLIC BROADCASTING
House Restores CPB's $100 Million
Harrison Named President/CEO of CPB

LEGISLATION
McCain-Lautenberg Bill Backs City Data Entry
Stevens Wants Telecom Input By July 4
Senate Punts on Broadcast Flag Option

BROADCASTING
Broadcasters Urge FCC Not to Further Regulate VNRs
BBC to Use Time Delay Device to Weed Out Upsetting Images

LIBRARIES
Library Internet Access
Turning books into bits

QUICKLY-- Gannett May Buy Emmis Television Stations; Net To Newspapers:
Drop Dead; TV Meters Give Shows Aimed at Minorities a Lift; Michigan Lift
for BPL; Chinese bloggers; This is your brain on video games

THE BATTLE OVER PUBLIC BROADCASTING

HOUSE RESTORES CPB's $100 MILLION
The House has voted 284 to 140 (including 80-plus Republicans) to restore
$100 million in funds to CPB, though another $100 million, including for
kids shows, remained on the cutting room floor. CPB Chairman Kenneth
Tomlinson was pleased with the move, and said he would work to make sure it
survived: "We applaud the U.S. House of Representatives for voting to
restore full funding for the Corporation for Public Broadcasting for Fiscal
Year 2006 in this year's Labor, Health and Human Services and Education
Appropriations bill," he said in a statement. "We will work with our
colleagues in the public broadcasting community to make the case for
protecting this funding as the appropriations measure makes its way through
Congress." Missing from the amendment were another $100 million in cuts,
including funding for the Ready to Learn kids show grant, for the digital
conversion, and interconnection funds for distributing shows to stations.
That troubled an otherwise pleased Pat Mitchell, president of PBS: "Despite
this victory, we remain very concerned that essential funds were
nonetheless eliminated for our Ready To Learn children's programming
initiative, for the interconnection system that links PBS with local
stations and for the transition to digital broadcasting mandated by
Congress," she said. "With these cuts, the financial burden of maintaining
these operations will fall entirely to local public television stations,
decimating their ability to finance local programming, educational outreach
and even to air PBS programming. In terms of the digital transition,
without restoration of funds, many local PBS stations, especially those in
rural areas, will be unable to complete the transition and will go dark
when their analog signal goes off. With the future of the public
broadcasting system still at stake, we will continue to work with APTS and
NPR to ensure that full funding will be restored as the bill moves through
the U.S. Senate and to conference committee."
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
http://www.broadcastingcable.com/article/CA610412?display=Breaking+News&...
(free access for Benton's Headlines subscribers)
* House Blocks Move To Cut PBS Funds
http://online.wsj.com/article/0,,SB111958472977868627,00.html?mod=todays...
* House Vote Spares Public Broadcasting Funds
http://www.washingtonpost.com/wp-dyn/content/article/2005/06/23/AR200506...
* House votes to keep most PBS funding intact
http://www.usatoday.com/printedition/life/20050624/wk_strip24.art.htm
* Cuts to Public Radio and TV Scaled Back
http://www.latimes.com/news/printedition/front/la-et-cpb24jun24,1,436824...
* Congress responds to public outcry, restores partial funding for public
broadcasting (Free Press)
http://www.freepress.net/press/release.php?id=78

PATRICIA HARRISON NAMED PRESIDENT/CEO OF THE CORPORATION OF PUBLIC BROADCASTING
Patricia S. Harrison, former Assistant Secretary of State for Educational
and Cultural Affairs (ECA), has been named President and CEO of the
Corporation for Public Broadcasting (CPB). Harrison stated, "I am pleased
to join with the Board and all stakeholders in the future success of public
broadcasting." She also vowed to join with public broadcast leaders to
restore congressional cuts of CPB in the President

Benton's Communications-related Headlines for 6/23/05

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

THE BATTLE OVER PUBLIC BROADCASTING
Public Broadcasters Face 'the Fight of Our Lives'
Opponents On Different Wavelengths
House Commerce Dems Back Noncoms
Republicans Say Restore CPB Funds
Pubcasters Say Funding Cuts Could 'Cripple' Digital Transition
Public Broadcasters' Tightrope Over Funds
Public Broadcasting Under Pressure
Bush's Broadcast Barbarians
Biden's Broadcast Connection

MEDIA
Back to the Drawing Board
Media Industry Poised to Grow
Red and Blue Media

DIGITAL TELEVISION
Generous Converter Box Subsidy Key To Broadcasters' 'Hard Date' Support
Stevens Postpones Hearing On DTV Transition

CABLE
Ending Cable Rate Regulation Top Priority for NCTA
McSlarrow Defends Private Cable Networks
Property-Tax Revision Would Soak Mass. Subs

MUNICIPAL NETWORKS
Phone Giants Are Lobbying Hard To Block Towns' Wireless Plans
Municipal Networks Find Opposition at Chamber Event

QUICKLY -- Martin Announces Staff Chances; Student testing is causing a
shift in ed-tech spending; Too few women and minorities in tech; Brain sees
violent video games as real; How the Web changes your reading habits; Union
launches 'Super-service' campaign; The Movie Theater in Your Pocket; APC
Betinho Prize

THE BATTLE OVER PUBLIC BROADCASTING

PUBLIC BROADCASTERS FACE 'THE FIGHT OF OUR LIVES'
On the eve of a vote crucial to its financial health, the public television
system is being buffeted by political and economic forces that have pushed
it into a situation many say is one of the most precarious in its 38-year
history. "In my opinion, this is probably the most tumultuous time that we
have had," said David Hosley, general manager of KVIE, Sacramento's public
television station, who has worked in the field for 18 years. "This is much
more serious, much more divisive, and I'm fearful that it may be more
successful in harming America's public broadcasting system." The House of
Representatives is considering a measure today that would nearly halve
federal funding for public television -- a move that broadcasters predict
would force the closure of small, rural stations and curtail production
money for programming. At the same time, the Corporation for Public
Broadcasting, the private agency that distributes federal funds, is
embroiled in a highly unusual partisan struggle involving allegations of
secret contracts with Republican lobbyists and a consultant who graded
former "Now" host Bill Moyers on political bias. Meanwhile, PBS faces
increased competition from the expanding world of cable, which offers the
very history, arts and children's programs that were once its sole domain.
And its own prime-time audience, at an average age of 61, is nearing
retirement.
[SOURCE: Los Angeles Times, AUTHOR: Matea Gold]
http://www.latimes.com/news/printedition/front/la-et-pbs23jun23,1,508454...
(requires registration)

OPPONENTS ON DIFFERENT WAVELENGTHS
People who work in public television and radio bristle whenever they're
accused of favoring liberal ideas and views over conservative ones. Public
broadcasting, they say, is committed to presenting diverse opinions. Yet as
the House of Representatives prepares to vote on the biggest federal
cutback ever for public broadcasting, there isn't much diversity to be
found among the people on either side. The battle lines over public
broadcasting have been drawn in sharply partisan fashion: Democrats in
Congress and liberal organizations have emerged as public broadcasting's
most visible and vocal supporters, while Republicans and conservatives have
stayed mostly silent. Public broadcasters point out that such nonpartisan
organizations as the National PTA, the American Academy of Pediatrics and
the American Psychological Association have recently joined the fight on
their side. But the inability to find many friends across the aisle has
been a source of frustration to broadcasters because they say it obscures
the breadth of public backing and hardens the partisan lines. "We know
there's Republican support out there, and we, too, are surprised that it
hasn't been more vocal," said Lea Sloan, a spokeswoman for PBS. In a column
in the Wall Street Journal, former Reagan speechwriter Peggy Noonan wrote
that "arguing over whether PBS is and has long been politically liberal is
like arguing over whether the ocean is and has long been wet. Of course it
is, and everyone knows it." Noonan advocated that Washington support public
broadcasting -- but only if it drops its current-affairs programs and
sticks to history and cultural fare. Another Republican, a House aide, said
yesterday that "NPR's liberal bent is obvious. There's a general lack of
sympathy [among Republicans] for that reason." This aide, who asked not to
be identified because his boss is trying to avoid publicly criticizing
public broadcasting, recounted traveling through the South recently and
hearing "six Christian radio stations and NPR. The contrast was obvious.
There's a real cultural dissonance there."
[SOURCE: Washington Post, AUTHOR: Paul Farhi]
http://www.washingtonpost.com/wp-dyn/content/article/2005/06/22/AR200506...
(requires registration)

HOUSE COMMERCE DEMS BACK NONCOMS
The latest salvo in the battle over the future of public broadcasting, the
Democrats on the House Commerce Committee have sent a letter to the
chairman and ranking member of the Appropriations Committee, California
Republican Jerry Lewis and Democrat David Obey, asking that full funding be
restored to Public TV and radio. Republican members were not approached
about joining the effort, according to a committee staffer. The Democrats
argue that zeroing out some programs and reducing funds for others will
devastate local stations and communities.
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
http://www.broadcastingcable.com/article/CA610110?display=Breaking+News&...
(free access for Benton's Headlines subscribers)

REPUBLICANS SAY RESTORE CPB FUNDS
Ouch! Who touched the 3rd rail? Iowa Republican Jim Leach has officially
joined the Democrat-led push to restore funds to the Corporation for Public
Broadcasting, according to a Democratic appropriations committee staffer.
Another Republican House member, Chris Shays of Connecticut, also supports
restoring the funds and, according to a staffer, expects to support the
amendment, depending on what the offsets will be (to give the money to CPB,
it must be taken from somewhere else in the budget). Wisconsin Democrat
David Obey, whose amendment to the appropriations bill restored CPB funding
for 2008 last week, plans to introduce a second amendment to the bill
either Thursday or Friday to restore the $100 million cut from CPB's 2006
appropriation. The amendment does not call for restoring funds to the Ready
to Learn (RTL) kids programming grant, the digital transition funds, or the
interconnections monies, all of which were eliminated by the same
Republican committee majorities. Why not include those in the amendment?
"Money is just too tight," said the staffer. Restoring the 2008 funds was
relatively easy, since it did not have to offset. But the RTL and other
cuts are from 2006. "You can only add money to one program by taking it
away from another in the same bill. This bill is health, job training,
education, and such, and all the programs face steep cuts.There just isn't
the fat to cut."
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
http://www.broadcastingcable.com/article/CA610230?display=Breaking+News&...
(free access for Benton's Headlines subscribers)

PUBCASTERS SAY FUNDING CUTS COULD 'CRIPPLE' DIGITAL TRANSITION
In a press conference on the eve of a House vote on public broadcasting
funding, PBS President Pat Mitchell highlighted the crisis public TV and
radio face if the House approves cuts of nearly 50% proposed by the
Appropriations Committee. Ms. Mitchell called it a "critical moment" for
public broadcasting, whose future would be "weakened" if the House votes
deep cuts, she said. The cuts would mean 50% operating budget drops for
some small and rural stations, she said, with some going dark. And there
would be no new funding for shows like Sesame Street, she added. Public
broadcasters also warned members of Congress that the cuts would also
"cripple" public TV's digital conversion. That would, in turn, delay the
digital transition, pushing back a spectrum auction generating billions in
proceeds for the government.
[SOURCE: Communications Daily, AUTHOR: Dinesh Kumar]
(Not available online)

PUBLIC BROADCASTERS' TIGHTROPE OVER FUNDS
Public radio stations are airing both promotional spots asking for
listeners to oppose cuts in federal support and news coverage/discussions
of those same cuts. That jarring juxtaposition of news programming and
self-interested promotion exemplifies the fine line that public
broadcasters are walking as they mobilize to combat threats to their
financing. It is always a delicate task for a news organization to cover
itself. But when the organization in question is financed in part by the
government, when the news centers on the prospects for that money and when
a station floods its airwaves with spots urging viewers or listeners to
contact their Congressional representatives, the undertaking becomes much
more challenging.
[SOURCE: New York Times, AUTHOR: Lorne Manly]
http://www.nytimes.com/2005/06/23/arts/television/23publ.html
(requires registration)

PUBLIC BROADCASTING UNDER PRESSURE
The House of Representatives is expected to vote by the end of the week on
an appropriations bill that includes a 45 percent cut in federal funding of
the Corporation for Public Broadcasting's. The funding fight is just the
latest in a string of debates that have erupted over the tenor and future
of public broadcasting.
[SOURCE: Online NewsHour]
http://www.pbs.org/newshour/bb/media/jan-june05/cpb_6-21.html

BUSH'S BROADCAST BARBARIANS
[Commentary] It's time to defend public television again, but let's demand
something better in return.
[SOURCE: Seattle Weekly, AUTHOR: Knute Berger]
http://www.seattleweekly.com/features/0525/050622_news_mossback.php

BIDEN'S BROADCAST CONNECTION
[Commentary] Sen Joe Biden (D-MD) is holding up the nomination of Dina
Habib Powell as the State Department officer named to use public diplomacy
to improve U.S. relations in the Middle East. He wants to trade his hold
for the renomination of radio tycoon Norman Pattiz for the Broadcasting
Board of Governors (BBG). Pattiz, founder and chairman of the Westwood One
radio conglomerate, was a generous Democratic contributor in 2000 ($360,000
for that election cycle alone) and an overnight White House guest.
President Bill Clinton named him that year to the BBG, which oversees the
U.S. government's worldwide radio and television broadcasting services.
Bush reappointed Pattiz in 2002 as part of a conventional package deal to
get the Senate, then under Democratic control, to confirm a Republican
nominee to the board: conservative Kenneth Tomlinson, former editor of
Reader's Digest and the Reagan-era head of the Voice of America. Pattiz and
Tomlinson, now the BBG chairman, are no marriage made in heaven. According
to sources, Tomlinson viewed Pattiz as a Hollywood control freak (it takes
a Washington control freak to know one). Pattiz played a leading role in
establishing a radio music service to the Arab world, but associates say he
was not the dominant force.
[SOURCE: Washington Post, AUTHOR: Robert D. Novak ]
(http://www.washingtonpost.com/)
(requires registration)

MEDIA

BACK TO THE DRAWING BOARD
The Newspaper Association of America vows to "fill the record with all of
the good data" if the Federal Communications Commission begins a new
proceeding on the newspaper-broadcast crossownership ban. That includes
studies and statistics showing that newspaper-owned television stations
produce more and better quality programs than stations owned by other
operators, says NAA President and Chief Executive Officer John F. Sturm.
Critics, who include interest groups on both sides of the political aisle,
argue that allowing a single entity to own a newspaper and a television
station or radio station in the same market would dangerously limit the
number of news options available to consumers and reduce the amount of
coverage. With the Supreme Court declining to review the case, sending the
media ownership rules back to the FCC, Chairman Kevin Martin has a number
of options before him, according to Howard Liberman, a partner in
communications law at Drinker Biddle's Washington office. Given the
likelihood that any future FCC decision on cross-ownership will be
appealed, Liberman says, Chairman Martin could open the issue up for public
comment, analyze the whole record and, when the matter goes back to the 3rd
Circuit, present further rationalization for the changes. Another option is
adopting a different measurement approach than the Diversity Index. The FCC
could also better articulate how the Internet is contributing to diversity,
and point out the new forms of news distribution -- such as blogging and
podcasting -- that have gained traction since 2003.
[SOURCE: Presstime Magazine, AUTHOR: ]
http://www.naa.org/Presstime/PTArtPage.cfm?AID=7065

MEDIA INDUSTRY POISED TO GROW
A new report by PricewaterhouseCoopers released Wednesday provides a broad
look at the media and entertainment industries -- covering everything from
film to newspapers to television to casino gambling, and including
advertising revenue as well as user fees. It predicts spending will rise to
$1.8 trillion in 2009 from $1.3 trillion last year. That would represent an
annual growth rate of 7.3 percent, down slightly from 7.8 percent last year
but up sharply from growth rates of 2.4 percent, 4.7 percent and 5.4
percent from 2001 through 2003, respectively. "The entertainment and media
industry continues to display an extraordinary ability to reinvent itself
and create new revenue streams through innovative offerings that hardly
existed as recently as 2000," said Wayne Jackson, head of
PricewaterhouseCoopers' entertainment and media practice. Indeed, the
report provides plenty of fodder for advocates of new media, predicting
that spending on Internet advertising and access charges will rise at an
annual rate of 16.9 percent globally over the next five years. For the "old
media," however, there are further reasons to fret: Spending on newspaper
subscriptions and advertising will rise at only a 3.3 percent annual rate,
the report predicts, with book publishing doing only slightly better at 3.4
percent.
[SOURCE: International Herald Tribune, AUTHOR: Eric Pfanner]
http://www.iht.com/articles/2005/06/21/yourmoney/media.php

RED AND BLUE MEDIA
[Commentary] The New School's Carol Wilder offered a provocative
commencement address this year on "Red and Blue Media." -- If it is true
that,"facts do speak, but not for themselves," who is doing the talking?
We're all familiar with the "red and blue states" designation. Now it seems
we have red and blue "facts." Robert Kennedy Jr. wrote in response to this
that "the Democrats lost the presidential contest not because of a
philosophical chasm between red and blue states, but due to an information
deficit caused by a breakdown in our national media."
[SOURCE: MediaChannel.org, AUTHOR: Carol Wilder, New School University]
http://www.mediachannel.org/views/dissector/affalert398.shtml

DIGITAL TELEVISION

GENEROUS CONVERTER BOX SUMMARY KEY TO BROADCASTERS' 'HARD DATE' SUPPORT
Broadcasters have told members of Congress that the main obstacle hampering
their support for a measure to set a fixed date for the end of analog
television is the lack of a generous subsidy program for converter boxes.
Budgetary issues are clouding the debate on Capitol Hill over how and when
to approve draft legislation by House Energy and Commerce Committee
Chairman Joe Barton, R-Texas, setting Dec. 31, 2008, as the hard date for
the transition to digital television. Barton initially was reluctant to
allocate more than $500 million for converter boxes, far less than the $2.5
billion sought by committee Democrats. Viewers who do not subscribe to
cable or satellite will need either a new television set or a converter box
to receive digital signals on a traditional analog television set. Until
recently, Barton wanted to hold the subsidy at $500 million by limiting the
program to over-the-air households and to those at 200 percent of the
poverty line or lower. Sources close to the Energy and Commerce panel said
Barton is now prepared to accept a $900 million allocation for converter
boxes, which is seen as sufficient to provide a free or subsidized box to
every over-the-air household. Homes that currently receive cable and
satellite service would not be eligible. The Democrats' $2.5 billion figure
is designed to permit all viewers to receive subsidized boxes. The
Democrats say it would be unrealistically limited and unduly complicated to
administer a system that checks an individual's income or pay-television
subscription status in return for providing a converter box.
[SOURCE: Technology Daily, AUTHOR: Drew Clark]
http://www.njtelecomupdate.com/lenya/telco/live/tb-FPOC1119473307073.html

STEVENS POSTPONES HEARING ON DTV TRANSITION
Senate Commerce Chairman Ted Stevens, R-Alaska, has postponed a hearing
originally scheduled for next Wednesday, June 29 on proposals to expedite
the transition to digital television broadcasts, a Commerce Committee aide
said Tuesday. The aide said committee members want to hold a "listening
session" with consumer groups before hearing testimony on the DTV
transition. No new date has been set for that hearing, or for a hearing
originally scheduled for this week on proposed telecom industry mergers.
[SOURCE: CongressDaily, AUTHOR: Molly M. Peterson]
http://www.njtelecomupdate.com/lenya/telco/live/tb-FUJP1119465581640.html

CABLE

ENDING CABLE RATE REGULATION TOP PRIORITY FOR NCTA
Cable operators, preparing for telecom and franchise law rewrites, have set
rate deregulation on basic cable
and equipment rates as a top legislative priority, NCTA President Kyle
McSlarrow said. Facing potential congressional
action on national franchising later this year, the industry doesn't need
to make concessions that would harm cable
operators to get what it wants, he said.
[SOURCE: Communications Daily, AUTHOR: Jonathan Make]
(Not available online)

McSLARROW DEFENDS PRIVATE CABLE NETWORKS
In comments partly aimed at TV stations looking for a free ride on cable
systems, National Cable & Telecommunications Association president Kyle
McSlarrow said Wednesday that cable's inability to control access to its
facilities directly impacts investment and limits consumer choice. "Every
time someone thinks they can just take a slice of bandwidth here, or a
slice there -- whether it's dual carriage or multicasting or something else
-- you reduce the incentives to invest, you pick winners and losers for
carriage on a pipe that does not have unlimited bandwidth, and you reduce
the real freedom of the consumer," McSlarrow said in a speech to the Media
Institute, an industry-funded First Amendment organization.
[SOURCE: Multichannel News, AUTHOR: Ted Hearn]
http://www.multichannel.com/article/CA610241.html?display=Breaking+News&...
(free access for Benton's Headlines subscribers)
* See McSlarrow's comments, "Cable Freedom" (and who can stand against
freedom?):
http://www.ncta.com/press/press.cfm?PRid=606&showArticles=ok

PROPERTY-TAX REVISION WOULD SOAK MASS. SUBS
Massachusetts consumers could face a substantial increase in their cable
and other telecom bills if the state's legislature passes a property-tax
revision, business leaders testified yesterday. Telephone companies and
cable operators have partnered in an attempt to fight off House Bill 2408,
which would apply property taxes to infrastructure such as poles,
underground conduits and wires. Cities -- especially Boston -- have
spearheaded the proposal, because their revenues have declined as telephone
companies accelerated depreciation of equipment, or transferred ownership
titles out of state, to avoid taxes. The law is needed to close
"loopholes," according to municipal officials.
[SOURCE: Multichannel News, AUTHOR: Linda Haugsted]
http://www.multichannel.com/article/CA610117.html?display=Breaking+News&...
(free access for Benton's Headlines subscribers)

MUNICIPAL NETWORKS

PHONE GIANTS ARE LOBBYING HARD TO BLOCK TOWNS' WIRELESS PLANS
SBC Communications and other big phone companies say that cities should not
be allowed to subsidize high-speed Internet connections -- even in areas
where the companies don't yet offer the service. Since January, lawmakers
in at least 14 states and the U.S. Congress have introduced bills to
restrict local governments' ability to fill the gap. On the other side of
the fight are cities, Intel, Dell, Texas Instruments and other tech
companies. They stand to gain from the sale of chips, wireless-enabled
laptops and other products that use fast Internet networks. Around the
country, governments are contracting with providers other than the local
telephone or cable companies to build or run the networks using Wi-Fi
technology or fiber-optic cables. Wi-Fi, short for wireless fidelity,
provides high-speed access to the Web. Traditional telecom providers view
such projects as a threat and are pushing for laws to curtail them. While
the phone and cable companies control the valuable "last mile" wired
connections into homes and offices, the wireless networks use antennas to
bypass those lines and can connect directly to the networks of
long-distance companies or fiber-optic providers. Plans for such
government-coordinated networks are spreading from rural America to larger
cities including Philadelphia and San Francisco, and big phone companies
have stepped up their efforts to stop them. The battle is increasingly
significant as telephone companies like SBC count on their high-speed Web
access businesses -- which generated roughly $5 billion in revenue last
year, nearly double the amount two years earlier -- to offset declines in
their traditional telephone operations. The telecom providers' main tool in
fighting competition from new wireless technologies is an old-fashioned
one: lobbying muscle. The nation's phone companies, which themselves
received more than $5 billion last year in federal subsidies, argue that
government partnerships with telecom providers represent unfair competition.
[SOURCE: Wall Street Journal, AUTHOR: Jesse Drucker jesse.drucker( at )wsj.com
and Li Yuan li.yuan( at )wsj.com]
http://online.wsj.com/article/0,,SB111948429964367053,00.html?mod=todays...
(requires subscription)
* Should cities be ISPs?
http://news.com.com/Should+cities+be+ISPs/2100-1034_3-5758262.html?tag=n...
* Debate Flares Anew Over Muncipal Broadband Networks
http://www.njtelecomupdate.com/lenya/telco/live/tb-LXUG1119473055651.html

MUNICIPAL NETWORKS FIND OPPOSITION AT CHAMBER EVENT
Municipalities should leave broadband networks to the private sector when
competition is healthy, said financial and regulatory consultant Michael
Balhoff in a debate at the Chamber of Commerce Wed. Although the Chamber
had speakers on both sides of the issue, many in the business audience
clearly seemed to oppose municipal networks. Introducing municipal networks
would take significant amounts of business away from telephone companies,
slowing or halting competition in the community, Mr. Balhoff said.
Supporters of the new networks, such as
attorney James Baller, say the issue isn't one of private versus public
sector, but rather a way to push lagging
regions forward. A ubiquitous broadband network would connect a large
percentage of the population unable
to afford Internet services.
[SOURCE: Communications Daily, AUTHOR: Tim Warren]
(Not available online)

QUICKLY

MARTIN ANNOUNCES STAFF CHANGES
On Wednesday, FCC Chairman Kevin J. Martin named Samuel Feder as Acting
General Counsel, Matthew Berry as Acting Deputy General Counsel and Emily
Willeford as Special Advisor for International Issues and Deputy Chief of
Staff. Sam Feder most recently served as the Chairman's Legal Advisor for
spectrum and international issues. He previously served as
then-Commissioner Martin's Legal Advisor for common carrier matters and as
a Legal Advisor to Commissioner Furchtgott-Roth. Before joining the
Commission, Mr. Feder worked at Harris, Wiltshire & Grannis, and at
Kellogg, Huber, Hansen, Todd & Evans, where he focused on
telecommunications and appellate litigation. He has also served as a trial
attorney in the Federal Programs Branch of the Department of Justice,
specializing in constitutional and administrative law, and as a law clerk
to the Honorable Edward R. Becker of the United States Court of Appeals for
the Third Circuit. Mr. Feder is a graduate of the College of William and
Mary and received his J.D, summa cum laude, from the University of Michigan
Law School. Matthew Berry most recently served as Counselor to the
Assistant Attorney General for the Office of Legal Policy in the U.S.
Department of Justice, where he earned the Department's John Marshall Award
for providing legal advice related to counter-terrorism policy. Ms.
Willeford returns to the Commission after having most recently served as
the Special Assistant in the Office of the Senior Advisor at the White
House. She has previously served as Special Assistant to then-Commissioner
Martin, an Assistant to the Deputy Director of the White House National
Economic Council, and Legal Assistant on the Bush-Cheney 2000 campaign.
[SOURCE: Federal Communications Commission]
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-259512A1.doc

STUDENT TESTING CAUSES SHIFT IN TECH SPENDING
Public schools pressured to keep up with state and federal testing
requirements are spending millions on high-tech systems to track and
catalog their kids at the same time the federal government is cutting
funding for the very same technology. The result: Instead of buying laptops
for students or updating old hardware, school systems are raiding
technology budgets to pay for data systems that keep track of test scores.
The mammoth systems, which give teachers instant access to student
information and pinpoint weak academic areas, are fast becoming part of the
education landscape nationwide.
[SOURCE: San Antonio Express-News, AUTHOR: Jenny LaCoste-Caputo
jcaputo( at )express-news.net]
http://www.mysanantonio.com/news/metro/stories/MYSA062105.01A.hi-tech_cl...

STUDY FINDS TOO FEW WOMEN AND MINORITIES IN TECH
The percentage of women in the information technology work force declined
from a high of 41% in 1996 to 32.4% in 2004, according to a report
Wednesday by the Information Technology Association of America trade group.
The shrinking representation of women is due largely to the fact that one
out of every three women in the IT work force falls into administrative job
categories that have experienced significant overall declines in recent
years, the ITAA said. But even after excluding those administrative
categories -- such as "data entry keyer" -- from analysis, the report finds
that women's share of the IT work force has declined, from 32.4% to 24.9%.
The ITAA's study suggested programs to increase the participation of women
and minorities in the computer field are not making much, if any, headway.
[SOURCE: C-Net|News.com, AUTHOR: Ed Frauenheim]
http://news.com.com/Study+finds+too+few+women+and+minorities+in+tech/210...

STUDY: BRAIN SEES VIOLENT GAMES AS REAL
The brains of players of violent video games react as if the violence were
real, a study by Klaus Mathiak of the University of Aachen in Germany has
suggested.
[SOURCE: Reuters]
http://news.com.com/Study+Brain+sees+violent+video+games+as+real/2100-10...

HOW WEB CHANGES YOUR READING HABITS
Computers and the Internet are changing the way people read. Thus far,
search engines and hyperlinks, those underlined words or phrases that when
clicked take you to a new Web page, have turned the online literary voyage
into a kind of U-pick island-hop. Far more is in store. A group at the Palo
Alto Research Center (PARC) is developing what it calls ScentHighlights,
which uses artificial intelligence to go beyond highlighting your search
words in a text. It also highlights whole sections of text it determines
you should pay special attention to, as well as other words or phrases that
it predicts you'll be interested in. ScentHighlights gets its name from a
theory that proposes that people forage for information much in the same
way that animals forage in the wild. ScentHighlights uncovers the "scent"
that bits of information give off and attract readers to it.
[SOURCE: Christian Science Monitor , AUTHOR: Gregory M. Lamb]
http://www.csmonitor.com/2005/0623/p13s02-stin.html

'SUPER-SERVICE' CAMPAIGN STARTED BY TELUS UNION
More than 13,000 Telus unionized employees are escalating a work-to-rule
campaign, launching a so-called "super-service" tactic that means workers
will essentially take longer to do their jobs. Bruce Bell, president of the
Telecommunications Workers, said the "super-service" campaign means workers
will take extra time to make sure customers get great service. Workers will
also obey all safety procedures, including taking the safest but not
necessarily shortest route to a job site, Bell said in an interview. "The
company has been stepping up their job action on us so we've decided to
step some back on them," Bell said Monday. Drew McArthur, Telus
vice-president of corporate affairs, said he's concerned that customers may
be inconvenienced by the campaign if workers spend longer than they need
with some customers to the detriment of others.
[SOURCE: Vancouver Sun, AUTHOR: Fiona Anderson]
http://www.canada.com/vancouver/vancouversun/news/business/story.html?id...

THE MOVIE THEATER IN YOUR POCKET
The phone's small screen could perhaps become as big as the Big Screen some
day. With 2 billion subscribers worldwide, mobile phones represent a much
greater market for film than movie theaters or PCs. No wonder studios,
distributors, and independent animators and filmmakers are streaming into
this virtual film genre.
[SOURCE: BusinessWeek, AUTHOR: Olga Kharif]
http://www.businessweek.com/technology/content/jun2005/tc20050622_9670_t...

THE APC BETINHO COMMUNICATIONS PRIZE IN 2005: Community connectivity for
economic development in Latin America and the Caribbean
In 2005, the APC Betinho Prize will be offered in recognition of community
initiatives in Latin America and the Caribbean that use the Internet and
other networks to access markets, skills and opportunities to derive real
economic benefits.
APC is looking for ICT initiatives that:
* make a positive economic contribution to the community
* are driven and developed in Latin America and the Caribbean
* can demonstrate a sustainable use of technology
THE PRIZE IS OPEN TO: Civil society organizations, community-based groups,
networks, and social movements anywhere in LAC. Applications will be
accepted in Spanish, Portuguese and English.
THE PRIZE: USD$ 7,500.00 may be shared amongst up to three winning initiatives.
DEADLINE FOR NOMINATIONS: October 16, 2005
MORE ABOUT THE APC BETINHO PRIZE: http://www.apc.org/english/betinho or
write to betinho( at )apc.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 6/22/05

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

THE BATTLE OVER PUBLIC BROADCASTING
CPB Leadership
Outcry Grows Over Public TV, Radio
Democrats Call for Firing of Broadcast Chairman
Mitchell Pitches PBS Shows
Media Bias on NPR -- It Seems Obvious to Some

LEGISLATION
Ensign, Pickering See Bills Soon on Franchising, IP Service
McCain, Lautenberg Take On Telco Firms Over Broadband
Rural Caucus Initiative Seeks To Buttress Universal Service

MEDIA
Digital Television Transition: Questions on Subsidy Program
D.C. Circuit Invalidates FCC

Benton's Communications-related Headlines for 6/20/05

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

THE BATTLE OVER PUBLIC BROADCASTING
Broadcasting Board Delays Vote on CEO
PBS Chairman Cites Partisan Pressure
CPB Chairman's Emails Cite White House Authority
Public Broadcasting Monitor Had Worked at Center
Founded by Conservatives
Slash & Burn
Public Broadcasters Air Ads Against Federal Cutback
Charren, Markey Re-Team to Fight Cuts

Benton's Communications-related Headlines for 6/15/05

It must be summer 'cause the policy world is a-heatin' up. The California
PUC is beginning a statewide tour asking for public comment on the proposed
SBC-AT&T merger this week. And CTCNet gathers this weekend in Cleveland.
For these and other upcoming media policy events, see
http://www.benton.org/calendar.htm

*************************************************************************************************************
* Sure we just got back, but we're off for the rest of the week now. We'll
catch you on the tour *
* at Wrigley, Comerica and "The Cell." See you here again Monday June
20. *
**************************************************************************************************************

LEGISLATION
Sen. Ensign Drafting Comprehensive Telecom Bill
McCain Slams Broadcasters

PUBLIC BROADCASTING
Squelching Public Broadcasting
PBS Adopts Updated Editorial Standards for On-Air and Online
Content, Hires Ombudsman

BROADCASTING
FCC Asks for Help on Stealth TV Ads
Jerry Kang on TV News, Viruses and the Public Interest
TV News Needs a Makeover
Viacom Spins Off CBS

TELECOM
FCC Launches Inquiry Into Management and
Oversight of Universal Service Fund
Study Warns Of Costly 'Domination' Resulting From
Telecom Mergers
Slowing Down The Bells

INTELLECTUAL PROPERTY
Music Industry Eyes 'Casual Piracy'
Don't Re-Hoist the Broadcast Flag
A deal made in Washington?

QUICKLY -- Prometheus on Supreme Court/Media Ownership Decision; Cellphones
Bad for Drivers; Microsoft censoring China blogs; FCC Continues EEO Random
Audits; FCC Releases NPRM on Auctioning Spectrum; Court Rules Borders Owed
Sales Taxes on Online Purchases; The Great TV Debate; Radio Rookies; Top
ISPs host most infected computers

LEGISLATION

SEN ENSIGN DRAFTING COMPREHENSIVE TELECOM BILL
Sen. John Ensign (R-NV), a member of the Senate Commerce Committee, is
quietly drafting a comprehensive deregulatory telecom reform bill that he
plans to introduce in mid-July. Sen Ensign has been given responsibility by
Senate Commerce Committee Chairman Ted Stevens (R-Alaska) to update several
aspects of the watershed 1996 Telecommunications Act by providing
deregulatory relief to the former "Baby Bells," long distance companies,
wireless phone providers and cable operators. The measure would limit
regulation of new technologies, particularly voice-over-Internet protocol,
or Internet telephony, by subjecting VoIP only to restrictions at the
federal level. Apparently, the bill will 1) include nationwide franchises
for phone companies planning to offer video services, and 2) lift some
restrictions requiring the Bells to provide their competitors with access
to their telecom networks.
[SOURCE: CongressDaily, AUTHOR: David Hatch]
http://www.njtelecomupdate.com/lenya/telco/live/tb-XTJO1118790268913.html

MCCAIN SLAMS BROADCASTERS
Sen. John McCain launched a public relations campaign against broadcasters
Tuesday, warning that TV stations could be blamed in part for future
terrorist casualties if they to not relinquish their old analog channels,
portions of which are slated to be turned over to fire, police and other
emergency departments. He unveiled legislation he is sponsoring that would
force broadcasters to return their old analog channels to the government on
Jan. 1, 2009, years sooner than current law requires. The bill also calls
for the federal government to provide a $468 million subsidy for converters
required to keep old analog sets working in the all-digital world.
[SOURCE: Broadcasting&Cable, AUTHOR: Bill McConnell]
http://www.broadcastingcable.com/article/CA608450?display=Breaking+News&...
(free access for Benton's Headlines subscribers)
* McCain DTV Bill Includes Must-Carry
http://www.multichannel.com/article/CA608508.html?display=Breaking+News&...
(free access for Benton's Headlines subscribers)
* McCain Unveils Measure To End Analog Broadcasts
http://www.njtelecomupdate.com/lenya/telco/live/tb-ULSZ1118779571532.html

PUBLIC BROADCASTING

SQUELCHING PUBLIC BROADCASTING
[Commentary] Do little boys and girls out there know how to spell "spite"?
For those who don't, the House Republicans who voted last week to gut
federal support of public broadcasting - from "Sesame Street" to well
beyond - are offering a graphic demonstration as they attack one of the
nation's more valued institutions. The Appropriations Committee voted not
only to end taxpayers' support for next year's children's shows on public
radio and television, but also to close out entirely the $400 million in
federal support of the Corporation for Public Broadcasting -- the aid
funnel to local stations -- across the next two years. Republican lawmakers
insist that the budget cuts are only one of many sacrifices required for
fiscal discipline -- a truly laughable contention from a Congress that has
broken all records for deficit spending and borrowing. The pending highway
bill alone has 3,800 pet projects. These include $2 billion-plus for two
ludicrous "bridges to nowhere" in rural Alaska, where, incidentally,
station officials say public broadcasting may fade from the air unless the
Senate blocks the House's spiteful cuts.
[SOURCE: New York Times, AUTHOR: Editorial Staff]
http://www.nytimes.com/2005/06/15/opinion/15wed2.html
(requires registration)

PBS ADOPTS UPDATED EDITORIAL STANDARDS FOR ON-AIR AND ONLINE CONTENT, HIRES
OMBUDSMAN
On Tuesday, the PBS Board voted to adopt an updated set of Editorial
Standards and Policies that will guide PBS' programming and content
development decisions. In a separate action, PBS CEO and President Pat
Mitchell announced that PBS management has decided to add an ombudsman
position to the PBS staff. The ombudsman will report directly to Ms.
Mitchell. A search has not yet begun and details of the process are to be
announced in the future. The updated standards and policies are the product
of more than a year of careful evaluation by PBS, including the creation in
Fall 2004 of a committee of national experts for the purpose of conducting
a formal review of PBS' content policies. This assessment included a
thorough examination of the standards and codes of many media and
journalistic organizations, including the Society of Professional
Journalists, the Radio and Television News Directors Association, the
Poynter Institute of Media Studies, the NewsHour with Jim Lehrer, Wisconsin
Public Broadcasting, among others. The panel met in a series of open
meetings from February to June 2005. The policies were made available to
the public today and are currently posted on pbs.org
(pbs.org/aboutpbs/aboutpbs_standards.html). The updated policies do not
represent a significant departure from those PBS has used since 1987.
[SOURCE: PBS Press Release]
http://www.pbs.org/aboutpbs/news/20050614_editorialstandards_ombudsman.html
* PBS Updates Editorial Standards, Adds Ombudsman
http://www.washingtonpost.com/wp-dyn/content/article/2005/06/14/AR200506...
(requires registration)
* PBS Makes Changes Amid Charges of Liberal Bias
http://www.latimes.com/news/printedition/asection/la-na-pbs15jun15,1,684...

BROADCASTING

FCC ASKS FOR HELP ON STEALTH TV ADS
The Federal Communications Commission wants people to help it spot
potential broadcast payola as the agency comes under growing pressure to
investigate stealth product promotions on television and radio shows.
Agency officials have created a Web page noting that stations must be
upfront when they are paid to air program materials, and that employees
need to notify stations when they accept payment to air material. TV
viewers and radio listeners are urged to file complaints if broadcasters
fail to adequately disclose paid promotions. The move comes after a call
last month by FCC Commissioner Jonathan S. Adelstein for a sweeping
crackdown on broadcasters who are increasingly slipping "covert commercial
pitches" into TV entertainment and news shows. Commissioner Adelstein
contends that the FCC has been lax in enforcing anti-payola rules by
allowing stations to inadequately disclose product placements as well as
instances when on-air personalities are paid to endorse products. FCC
Chairman Kevin J. Martin has said the FCC can't investigate potential
violations absent complaints. Hoping to jump-start a probe, FreePress,
a media watchdog group, is expected to file some today. In a draft
document, FreePress said broadcasting "is chock-full of pay-for-play
endorsements of commercial products and federal policy." Under FCC rules,
"sponsored material must be explicitly identified at the time of broadcast
as paid for and by whom," the group said.
[SOURCE: Los Angeles Times, AUTHOR: Jube Shiver Jr]
http://www.latimes.com/business/printedition/la-fi-tvpromo15jun15,1,4103...
(requires registration)

JERRY KANG ON TV NEWS, VIRUSES AND THE PUBLIC INTEREST
A Q&A with Jerry Kang, a law professor at UCLA who lectures and writes
about civil procedure, race and communications. This spring, he published a
Harvard Law Review an article entitled Trojan Horses of Race, in which he
argues that racial biases are being exacerbated by the emphasis on violent
crime in local news broadcasts. Kang says, "First, my only concrete,
current recommendation is for the FCC to break the near equivalence between
the "public interest" and "local news." That equivalence is not justified.
The Commission should examine how it defines the public interest and
whether local news should play such a crucial role. ... What contributed
more to the public interest: the airing of Alex Haley's Roots or another 15
minutes on an armed robbery?"
[SOURCE: Columbia Journalism Review, AUTHOR: Susan Stranahan]
http://www.cjrdaily.org/archives/001587.asp
see Trojan Horses of Race
http://www.law.georgetown.edu/faculty/kang/dropbox/kangtrojan.pdf

TV NEWS NEEDS A MAKEOVER
[Commentary] Denver's local TV news shows have perfected the art of finding
"news" stories linked to the prime- time entertainment shows their stations
broadcast. 1) Offer advice on a topic addressed by the entertainment show,
2) Cover a local resident who's on the entertainment show, 3) Cover Denver
tryouts for the entertainment show, 4) Stage an event that mimics the
entertainment show, 5) Describe a controversy caused by the entertainment
show, and 6) Treat events in the entertainment show as news. Salzman
concludes: "if the local TV outlets insist on broadcasting "news" about
entertainment programming, they should inform viewers when they have a
financial interest in the success of the show mentioned. Without proper
disclosure, these local stories should be seen by viewers as advertisements
embedded in the newscasts."
[SOURCE: Rocky Mountain News, AUTHOR: Jason Salzman
salzmanj( at )RockyMountainNews.com]
http://www.rockymountainnews.com/drmn/news_columnists/article/0,1299,DRM...

VIACOM SPINS OFF CBS
Viacom's board of directors unanimously approved a plan to split the
company into two parts. The company said it will spin off the bulk of its
operations into a new company to be called CBS Corp. That unit will include
CBS network and stations, Paramount and King World television production;
Infinity radio, Viacom Outdoor; Showtime, and publisher Simon & Schuster.
Viacom will retain faster-growing business units, including MTV Networks
and Paramount Pictures. Viacom CEO Sumner Redstone will be Chairman of both
companies.
[SOURCE: Broadcasting&Cable, AUTHOR: John M. Higgins]
http://www.broadcastingcable.com/article/CA608498?display=Breaking+News&...
(free access for Benton's Headlines subscribers)
* Viacom Board OKs Split
http://www.multichannel.com/article/CA608499.html?display=Breaking+News&...
(free access for Benton's Headlines subscribers)
* Viacom to Split, Create 2 Companies
http://online.wsj.com/article/0,,SB111877911609259421,00.html?mod=todays...
(requires subscription)
* Viacom plans split to spur growth
http://www.usatoday.com/printedition/money/20050615/1b_viacom_15.art.htm
* Viacom Board Agrees to Split of Company
http://www.nytimes.com/2005/06/15/business/media/15viacom.html
* Viacom OKs Plan to Split, but 1 Man Will Still Run the Show
http://www.latimes.com/business/printedition/la-fi-viacom15jun15,1,42740...

TELECOM

FCC LAUNCHES INQUIRY INTO MANAGEMENT AND OVERSIGHT OF UNIVERSAL SERVICE FUND
On Tuesday, the FCC launched a broad inquiry into the management,
administration and oversight of the Universal Service Fund. The
Commission's goals are to improve the operation of the program for its
beneficiaries and contributors and to enhance program integrity. The four
programs of the Universal Service Fund, or USF, help provide affordable
phone service in rural areas, fund Internet access and telecommunications
equipment and services in the nation's schools and libraries, bring
telemedicine services to rural areas, and assist low-income families with
their phone bills. Since 1997, the Universal Service Administrative
Company, or USAC, which administers the fund, has disbursed approximately
$30.3 billion from the fund. This proceeding will provide an opportunity
for the Commission to work with all USF stakeholders to learn from the
experience of the past eight years and find new, constructive ways to both
meet the needs of those who depend on the USF and protect the integrity of
the program. In particular, the Commission is seeking comment in the
following areas: 1) The Commission is exploring ways to simplify and
streamline the management of the program, 2) The Commission seeks comment
on the effectiveness of existing efforts to protect the fund against
potential misuse, 3) The Commission is examining the effectiveness of the
existing administrative structure and seeks comment on whether any rule
changes are needed to ensure the USF is administered in an effective,
competitively neutral way and 4) The Commission is seeking comment on
establishing performance measures to assess the effectiveness of the program.
Docket Nos. 05-195, 96-45, 02-6, 02-60, 03-109 and 97-21
[SOURCE: Federal Communications Commission]
Press Release:
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-259330A1.doc
Notice of Proposed Rulemaking:
http://hraunfoss.fcc.gov/edocs_public/attachmatch/FCC-05-124A1.doc
Chairman Martin's statement:
http://hraunfoss.fcc.gov/edocs_public/attachmatch/FCC-05-124A2.doc
Commissioner Copps' statement:
http://hraunfoss.fcc.gov/edocs_public/attachmatch/FCC-05-124A3.doc
"I am concerned about one aspect of the NPRM. It asks if we should replace
the application process and distribute E-Rate funds directly to schools and
libraries according to their size. Such a change could also allow funds to
be used for unspecified communications-related services and equipment,
rather than requiring applications that specify services and equipment. So
many questions about this approach remain unaddressed. Distributing funds
directly to schools could conceivably exclude Catholic and other private
and parochial schools from the E-Rate program. Tying funds to school size
could conceivably result in our rural and insular schools being denied the
funds they need for the extraordinary cost of services in these areas, just
because they have fewer students. And if schools are given a sum of money
to be used for unspecified purposes rather than for specified and
verifiable services and equipment, it could be much more difficult to
identify fraud. Without assurances that parochial schools and rural
schools would not be disadvantaged, and fraud detection would not be
undermined, I must express my concern with this aspect of a generally very
sound item. I urge all those who share this concern to respond to this
notice so that our record leaves no doubt about the effects, including
those always pernicious unintended effects, of proposals that would so
dramatically affect this very successful program."
* FCC Will Review Subsidy Program For Rural Phones
[SOURCE: Wall Street Journal, AUTHOR: Brian Blackstone
brian.blackstone( at )dowjones.com and Amy Schatz Amy.Schatz( at )wsj.com]
http://online.wsj.com/article/0,,SB111879916643259911,00.html?mod=todays...
(requires subscription)

STUDY WARNS OF COSTLY 'DOMINATION' RESULTING FROM TELECOM MERGERS
If AT&T and MCI are acquired by SBC Communications and Verizon
Communications, respectively, the two Bell companies will control telephone
service in nine out of 10 commercial buildings in their regional operating
territories, Bell competitors said Tuesday. The resulting "domination [of]
each [in] its own region will fuel at least a 15 percent increase in
wholesale prices for local access, in turn driving up retail prices to
business by a similar amount," according to a statement by the Alliance for
Competition in Telecommunications -- ACTel -- a group formed by Bell
competitors to challenge the two mergers.
[SOURCE: Technology Daily, AUTHOR: Drew Clark]
http://www.njtelecomupdate.com/lenya/telco/live/tb-TGXH1118779898628.html

SLOWING DOWN THE BELLS
Last December, SBC Communications and Verizon Communications were proudly
promoting their impending entry into pay television. These telecom titans
bragged about going head-to-head against media and cable giants such as
Comcast and Time Warner. Six months later, SBC and Verizon are fuming about
their still-pending entry into the video marketplace. Business and
technology issues haven't always been smooth -- but both companies believe
that the vast bulk of their frustration results from cable operators such
as Comcast, Cox Communications and Cablevision. For its part, the cable
industry has been nakedly transparent about its tactics of delay. At a
meeting of the Cable Television Public Affairs Association last month,
cable industry executives assessed the competitive from the regional Bell
operating companies. It was very real, they said.
[SOURCE: Wired In Washington, AUTHOR: Drew Clark]
http://www.njtelecomupdate.com/lenya/telco/live/tb-XMFW1113937467518.html

INTELLECTUAL PROPERTY

MUSIC INDUSTRY EYES 'CASUAL PIRACY'
The record labels are in pursuit of a new class of music pirates -- not the
millions who download bootlegged songs over the Internet but those who copy
music CDs for their friends. The music industry considers the seemingly
innocuous act of duplicating a music CD for someone else "casual piracy,''
a practice that surpasses Internet file-sharing as the single largest
source of unauthorized music distribution. After fits and starts, the
industry's largest players are taking measures to place curbs on copying.
Sony BMG Music Entertainment plans to copy-protect all music CDs sold in
the United States by the end of the year. Another major label, EMI, will
introduce copy-protected CDs in its two largest markets -- the United
States and the United Kingdom -- in the coming weeks. For consumers, it
signals an abrupt change to the rip, mix, burn mania embodied by the 2001
Apple Computer ad campaign promoting the first iMac computer with a CD
burner and software for creating custom music CDs. These new copy-protected
discs limit the number of times people can create copies of music CDs or
add individual songs to music mixes.
[SOURCE: San Jose Mercury News, AUTHOR: Dawn C. Chmielewski]
http://www.mercurynews.com/mld/mercurynews/business/technology/11898486.htm

DON'T RE-HOIST THE BROADCAST FLAG
[Commentary] When a federal court roundly strikes down an anti-consumer
regulation like the FCC's "broadcast flag," Congress ought to take a long
breath before trying to revive it. Even legislators who believe copyrighted
works on broadcast TV need more protection will find, if they look hard at
the broadcast-flag scheme, that it harms consumers in countless ways, and
not just by limiting how many copies they can make of recorded TV shows.
The battle over broadcast-flag legislation gives the Congress a unique
opportunity to re-establish its pro-consumer and pro-market bona fides. If
Congress chooses instead to reinstate this broad, intrusive regulation, the
broadcast flag will entangle the government in massive industrial policy
and place absurd new limits on what consumers and others can lawfully do
with free over-the-air television. Now that a federal court has lowered the
broadcast flag, Congress should think twice before raising it again.
[SOURCE: Center for American Progress, AUTHOR: Gigi Sohn, Public Knowledge]
http://www.americanprogress.org/site/pp.asp?c=biJRJ8OVF&b=749361

A DEAL MADE IN WASHINGTON?
[Commentary] If the MPAA expects Congress to ratify a rule that would limit
the ability of ordinary consumers to share lawfully acquired digital
broadcast television programs with one another, then it shouldn't be
surprised if Congress insists that the MPAA accept in return a restoration
of the fair use rights taken from consumers through the enactment of the
Digital Millennium Copyright Act (DMCA).
[SOURCE: C-Net|News.com, AUTHOR: Rep Rick Boucher]
http://news.com.com/A+deal+made+in+Washington/2010-1071_3-5744982.html?t...

QUICKLY

SUPREME COURT REJECTS CORPORATE MEDIA APPEAL in PROMETHEUS vs. FCC
"By refusing to hear the corporations' appeal, the Supreme Court is
affirming the demands of millions of people in the United States: the FCC
needs to take a close look at its rules about media ownership and the
assumptions guiding these rules," said Pete Tridish of the Prometheus Radio
Project, the lead petitioner in the case against the agency. "The FCC
chose a course that would add a few percentage points to the profit margins
of a handful of corporations, while exposing Americans to a throttled
public debate. Under the FCC's rules, just a handful of corporate
executives could easily stifle unpopular opinions. We need to look no
further than today's Italy, where a media mogul has become Prime Minister,
to understand the problems that these new rules could have created for
American democracy."
[SOURCE: Prometheus Radio Project Press Release]
http://www.prometheusradio.org/lawsuit_supreme_victory_june_13th.doc

CELLPHONES ARE FOUND TO POSE RISKIEST DISTRACTIONS FOR DRIVERS
Among the many distractions faced by car drivers, cellphones and other
wireless devices contributed to far and away the most crashes, near-crashes
and other incidents, according to a new government study expected to be
released next week. The yearlong study, which tracked 100 cars and their
drivers by the Virginia Tech Transportation Institute and the National
Highway Traffic Safety Administration, or NHTSA, highlights the danger of
talking on cellphones. The results come as Connecticut last week passed a
law banning the use of hand-held phones while driving. Several other states
are considering similar legislation. But even as safety concerns have led
several states and local jurisdictions to ban drivers from using hand-held
phones, some 40% of cellphone use still takes place while driving.
[SOURCE: Wall Street Journal, AUTHOR: Karen Lundegaard
karen.lundegaard( at )wsj.com and Jesse Drucker jesse.drucker( at )wsj.com]
http://online.wsj.com/article/0,,SB111879162641559699,00.html?mod=todays...
(requires subscription)

MICROSOFT UNDER FIRE FOR CENSORING CHINA BLOGS
Microsoft's new MSN China Internet venture is censoring words such as
"freedom," "democracy" and "human rights" on its free online journals,
Microsoft said on Tuesday, putting itself in the middle of a major Web
controversy. The world's largest software maker said that its "MSN Spaces"
service operated out of China, which allows users to set up their own
blogs, or online journals, was acting in accordance with local laws. The
move comes as the Chinese government attempts to tighten control over the
Internet. Last week, a media watchdog group said China would close
unregistered China-based domestic web sites and blogs. About three-quarters
of domestic Web sites had complied with the registration orders, the group,
Reporters Without Borders said, citing Chinese figures.
'Course, we're doing a pretty good job of censoring "freedom," "democracy"
and "human rights" in these parts these days, too.
[SOURCE: Reuters, AUTHOR: Reed Stevenson]
http://www.reuters.com/newsArticle.jhtml;jsessionid=1CVSE2Q2SLJA2CRBAEKS...

FCC CONTINUES EEO RANDOM AUDITS
On June 10, 2005, the Federal Communications Commission (FCC) began mailing
the second of its Equal Employment Opportunity (EEO) audit letters for 2005
to randomly selected broadcast stations and multi-channel video programming
distributors (MVPDs). In accordance with the provisions of the
Commission's EEO rules, the FCC is auditing the EEO programs of randomly
selected broadcast licensees and MVPDs. Each year, approximately five
percent of all stations and MVPDs are selected for random EEO audits. Audit
letters will be mailed to additional broadcast licensees and MVPDs
throughout the year.
[SOURCE: Federal Communications Commission]
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DA-05-1654A1.doc

FCC Releases NPRM on Auctioning Spectrum for Advanced Wireless Services by
Implementing Commercial Spectrum Enhancement Act
[SOURCE: Federal Communications Commission]
http://hraunfoss.fcc.gov/edocs_public/attachmatch/FCC-05-123A1.doc
See June 9 Press Release:
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-259249A1.doc

CALIFORNIA COURT RULES BORDERS OWED SALES TAXES ON ONLINE PURCHASES
A California appeals court has ruled that the online division of bookseller
Borders Group Inc. should have collected sales tax on orders from state
residents, setting a precedent that other states could follow. The ruling
overturns an advantage that some Web-based retailers have long had over
their "bricks-and-mortar" counterparts, experts said. According to a 1992
U.S. Supreme Court ruling, companies have to collect state sales taxes only
in states where they have a physical presence, such as offices or warehouses.
[SOURCE: Washington Post, AUTHOR: Mike Musgrove]
http://www.washingtonpost.com/wp-dyn/content/article/2005/06/14/AR200506...
(requires registration)

THE GREAT TV DEBATE
[Commentary] Does television have a place in the progressive agenda? Why
should we pay attention to it, and what does it do for us? If we ignore
mainstream culture, we would be doing a disservice to our readers. We do
live in this country, and we do want change; in the meantime, we must know
whom we're trying to reach, and whom they're listening to.
[SOURCE: AlterNet, AUTHOR: Monica Mehta]
http://www.alternet.org/mediaculture/22191/

WITH RADIO ROOKIES, TEENAGE NEW YORK GETS VOICE ON AIR
Starting today, WNYC-FM, an affiliate of National Public Radio, will carry
reports by the latest crop of young reporters, four students who live in
the Bronx, on the subjects that concern them: immigration status, their
obsessions, aggression, parents. The pieces will be broadcast on "Morning
Edition," and will be played again in August. (NPR plans to carry some of
them nationally later this year.)
[SOURCE: New York Times, AUTHOR: Julie Salmon]
http://www.nytimes.com/2005/06/15/arts/15rook.html
(requires registration)

TOP ISPs HOST MOST INFECTED COMPUTERS, REPORT SAYS
AOL and other large Internet service providers serve as launching pads for
most "denial of service" attacks, according to Prolexic Technologies, which
helps companies fend off such attacks.
[SOURCE: Reuters, AUTHOR: Andy Sullivan]
http://www.reuters.com/newsArticle.jhtml?type=internetNews&storyID=8790623
--------------------------------------------------------------
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 6/14/05

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

MEDIA OWNERSHIP
Supreme Court Refuses To Hear Media Ownership Case
Early Reaction to Supreme Court Decision

LEGISLATION
McCain Pushes Analog Reclamation Bill
Stevens: Time's Up in '09
NRB Opposes DTV Legislation
Municipal Broadband Bill Draws Consumer Opposition
Public Broadcasting's $20 Billion Pitch

LAST WEEK (...OR, WHY I CAN'T MISS A NEWS CYCLE)
Panel Would Cut Public Broadcasting Aid
Stevens Aide Withdraws As Candidate For FCC
FCC Modifies Digital Tuner Requirements to Advance DTV Transition
FCC Official Vows Tougher Enforcement of DTV Tuner Mandate
FCC Reaffirms Rules for Hearing Aid Compatible Digital Wireless Telephones
FCC Moves Closer to Auctioning Spectrum for Advanced Wireless Services

QUICKLY -- Viewers Want VNR IDs; TV Debates: Still Beyond the Fringe; Who's
a Journalist?; Shapiro, NAB: Almost Strange Bedfellows?

MEDIA OWNERSHIP

SUPREME COURT REFUSES TO HEAR MEDIA OWNERSHIP CASE
The U.S. Supreme Court won't hear broadcaster arguments to appeal a 3rd
U.S. Appeals Circuit, Philadelphia, order remanding FCC media ownership
regulations for agency review. Last June's remand order negated new FCC
rules that would have significantly loosened media ownership restrictions
on TV and newspapers. The Supreme
Court ruling throws those rules back to the FCC. The Tribune Co., News
Corp.'s Fox, Viacom's CBS and GE's NBC asked the high court to review the
case. The networks urged an overturn of Red Lion, a 1969 Supreme Court
decision that is the basis for many radio and TV industry rules. The Media
Access Project (MAP) said it wasn't surprised by the Supreme Court
decision. "Even the Dept. of Justice and the FCC agreed that this case
wasn't worthy of Supreme Court Review," MAP President Andrew Schwartzman
said. But he went on to caution: "I expect difficult fights ahead.
Chairman Martin has signaled that he will try to divide the media ownership
proceeding into several pieces to reduce its visibility."
[SOURCE: Communications Daily, AUTHOR: Tania Panczyk-Collins]
(Not available online)
* High Court Leaves Ownership Limits In Media to FCC
Chairman Kevin Martin is expected to advocate relaxing media-ownership
limits, particularly for newspaper publishers. Chairman Martin is likely to
seek public comment on the matter next month. Although Chairman Martin
privately had argued against taking a broad approach to overhauling
media-ownership limits in 2003, he is now likely to deal with both
newspaper and broadcast cross-ownership and local-television ownership caps
together, since those are the major issues left to be resolved.
http://online.wsj.com/article/0,,SB111868229749458160,00.html?mod=todays...
(requires subscription)
* NAA Undaunted By Supreme Court Cross-Ownership Ruling
The Newspaper Association of America has been one of many organizations and
media companies fighting for the FCC's loosened media ownership rules --
and it will now take that fight back to the FCC. Prudential Equity Research
released a note Monday predicting that it will take nine to 12 months
minimum before the FCC issues new media ownership rules.
http://www.editorandpublisher.com/eandp/news/article_display.jsp?vnu_con...
* Supremes Won't Review Ownership Rules
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton & Bill McConnell]
http://www.broadcastingcable.com/article/CA607951?display=Breaking+News&...
(free access for Benton's Headlines subscribers)
* High Court Refuses Ownership Cases
[SOURCE: Multichannel News, AUTHOR: Ted Hearn]
http://www.multichannel.com/article/CA608128.html?display=Breaking+News&...
(free access for Benton's Headlines subscribers)
* Limits on Media Ownership Stand
http://www.washingtonpost.com/wp-dyn/content/article/2005/06/13/AR200506...
* High court won't hear media case
http://www.usatoday.com/printedition/money/20050614/fcc14.art.htm
* Justices Decline to Hear FCC Media Case
http://www.latimes.com/business/printedition/la-fi-fccmedia14jun14,1,538...
* High Court Ruling May Reignite Media Ownership Debate
http://www.njtelecomupdate.com/lenya/telco/live/tb-QAVP1118694849326.html

EARLY REACTION TO SUPREME COURT DECISION
At the FCC --
* Chairman Martin: "I am now looking forward to working with all of my
colleagues as we reevaluate our media ownership rules consistent with the
Third Circuit's guidance and our statutory obligations."
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-259294A1.doc
* Commissioner Copps: "The ball is clearly back in the Commission's
court. The FCC has a fresh opportunity now to come up with a set of rules
to encourage localism, competition, and diversity in our media. If we work
together, conduct outreach to engage the American people, and gather a more
complete record, I am confident of our ability to craft rules that will
withstand judicial scrutiny and the scrutiny of the American people. I am
ready to roll up my sleeves and work with my colleagues to get the job done."
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-259295A1.doc
* Commissioner Adelstein: "This decision is a rare victory for the public
over some of the most powerful corporations in America. The American
public is concerned about concentration in the media, and our court system
has rightly responded. The court's decision puts the issue of media
consolidation right back in the FCC's hands and gives us an opportunity for
a fresh start, so we better get it right this time. We need to be very
careful because once we allow greater media concentration, we can't put the
toothpaste back in the tube. We can't let a handful of media giants
dominate the discourse in any community. Learning from the backlash against
the rules last time, we now need to involve the public and Congress more
fully in our deliberations. We need to hold public hearings across the
country, and call for more studies from experts and academics. I look
forward to working with Chairman Martin and all of my colleagues on a
bipartisan basis to fix the rules so they comply with the court order. We
need a comprehensive response that recognizes our media ownership rules
work together to prevent a single owner from gaining too much control over
what the American people see, hear and read."
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-259293A1.doc

From Advocacy Groups --
* Consumers Union: "The Supreme Court today reaffirmed what we already knew
-- the FCC went too far in permitting the mergers between dominant local
newspapers and TV stations, the most important sources of local news and
information. This decision is a clear signal to the FCC that any change in
media ownership rules must reflect today's environment and not a zealous,
overreaching deregulation agenda. Consumers have the right to a diverse and
independent media, covering a range of issues and presenting different
points of view. Today's decision helps ensure that what consumers read in
the morning newspaper isn't verbatim what they see on the 6 o'clock news.
While this decision is good news for consumers, the battle over media
ownership is far from over. We must remain vigilant to ensure efforts to
allow a few companies to dominate the major sources of local news and
information don't succeed. We are extremely hopeful the new FCC chairman
will revisit these issues with a better understanding of how important a
diverse and independent local media is to a community."
http://www.consumersunion.org/pub/core_telecom_and_utilities/002395.html...
* Free Press: "The brazen attempt to loosen media ownership restrictions by
the big media corporations and their cronies at the FCC now has been
definitively rejected by the courts and the American people. Will the FCC
use this rebuke as an opportunity to institute media policy that reflects
the wishes of the millions and millions of Americans who oppose greater
media consolidation? Or will the majority on the commission simply try to
sneak in the same indefensible policies through the back door? The public
will be watching very closely. FCC leadership -- including whoever fills
the vacant seat of the commission -- should heed the call by Commissioners
Michael Copps and Jonathan Adelstein for nationwide public hearings on
media ownership before taking up these rules again. Decisions on the future
of our media system must reflect the will of the American public -- not
just the whims of the big media moguls. Such monumental decisions should
not be made behind closed doors in Washington."
http://www.freepress.net/press/release.php?id=74

LEGISLATION

MCCAIN PUSHES ANALOG RECLAMATION BILL
Sens. John McCain (R-AZ) and Joe Lieberman (D-CT) will unveil today
legislation aimed at reclaiming broadcast TV spectrum and handing it over
to public safety departments and other new users by Jan. 1, 2009. Sens
McCain and Lieberman have titled their bill the "Save Lives Act," short for
Spectrum Availability for Emergency-Response and Law-Enforcement to Improve
Vital Emergency Services Act. Sen McCain will hold a press conference
Tuesday afternoon to promote the bill. He will be joined by Thomas Kean,
chairman of the 9/11 Commission, which urged Congress to hand more
communications spectrum to local emergency departments after his panel
discovered that crowded emergency radio bands prevented New York City
police and fire personnel from communicating adequately during the 2001
terrorist attacks. The bill will get a hearing June 29, along with
legislation expected to be introduced soon by Sen Ted Stevens (R-Alaska)
(see following story).
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
http://www.broadcastingcable.com/article/CA608133?display=Breaking+News&...
(free access for Benton's Headlines subscribers)

STEVENS: TIME'S UP IN '09
Senate Commerce Committee Chairman Ted Stevens (R-Alaska) and House
counterpart Joe Barton (R-TX) apparently agree that the transition to
digital-only television should be completed by January 1, 2009. Sen Stevens
is working on digital television legislation -- and gathering support for
it. He said he expects a DTV bill to reach the White House by October at
the latest. A decade ago, TV stations received digital licenses to provide
HDTV and other advanced services. The federal government wants to reclaim
the analog spectrum for reallocation to public safety groups and to
wireless broadband providers. Analog spectrum auctions could generate
between $10 billion and $30 billion for the U.S. Treasury, according to
private estimates. The imposition of a so-called hard date would replace
current law, which allows TV stations to keep both licenses until 85% of
local households have acquired digital reception equipment. The 85% test
has come under fire as unnecessarily prolonging the transition.
[SOURCE: Multichannel News, AUTHOR: Ted Hearn]
http://www.multichannel.com/article/CA607843.html?display=Policy&referra...
(free access for Benton's Headlines subscribers)

NRB OPPOSES DTV LEGISLATION
The National Religious Broadcasters opposes proposed digital television
legislation on three grounds: 1) Dual carriage -- the requirement that
mustcarry stations receive both digital and analog carriage on cable
systems should be extended to 2013, "at a minimum," the group argues, 2)
Multicast must carry -- "We believe a provision for multicast must-carry is
an essential (yet currently missing) component of this legislation" because
without multicasting, carriage opportunities for religious programming are
"marginalized," and 3) Converter box subsidy -- lack of a subsidy provision
will leave many sets dark, a "significant adverse
impact on our programs."
[SOURCE: Communications Daily]
(Not available online)
See also:
* NRB Opposes DTV Draft Bill
[SOURCE: Broadcasting&Cable, AUTHOR: Bill McConnell]
http://www.broadcastingcable.com/article/CA608149?display=Breaking+News&...
(free access for Benton's Headlines subscribers)

MUNICIPAL BROADBAND BILL DRAWS CONSUMER OPPOSITION
More consumer and high-tech advocates spoke out Monday against a bill to
bar municipal governments from offering broadband Internet service except
to remedy market failures. The bill (HR-2726), introduced by Rep. Sessions
(R-TX), a former 16-year executive at SBC predecessor Southwestern Bell
Telephone, is "an outrage" and a "smack in the face" for Texans, whose
state legislature thwarted recent attempts at passing a similar bill, said
Mark Cooper, Research Director for the Consumer Federation of America.
According to Cooper and Free Press, more than 100 telecom lobbyists
bombarded legislators, but defenders of public broadband and legislative
allies held firm against the proposed law in Texas. "[Sessions] wants to
jump in and see if the feds are willing to do SBC's bidding if the state
won't," Cooper said. Backers of measures to keep municipalities from
providing high-speed Internet, like SBC and BellSouth, argue that
government gets special treatment and tax breaks. But Cooper said these
systems won't require subsidies since they provide services in lieu of
taxes. "What they give back to the people is equal to or greater than what
the telephone companies give back," he said. Cooper noted that just as
electricity and roadways are public services, "these are the streets and
highways of the 21st century." He accused private carriers of doing a poor
job of making broadband available to rural and underserved populations.
[SOURCE: Communications Daily, AUTHOR: Andrew Noyes]
(Not available online)
See also --
* Rep. Sessions Lends A Hand To SBC
http://www.njtelecomupdate.com/lenya/telco/live/tb-QCTQ1118693221810.html

PUBLIC BROADCASTING'S $20 BILLION PITCH
Budget battles (see following story) and the ongoing political food fight
over the GOP's alleged attempt to stamp out liberal programming on PBS has
left the government's willingness to support public broadcasting in the
future open to doubt. But Rep. Ed Markey (D-MA) has gained bi-partisan
support for a bill that would create a $20 billion trust fund that would
support public broadcasting. The legislation, dubbed the Digital
Opportunities Investment Trust, would create monies that could be used to
help stations develop new educational programming and distance-learning
technology as well as for digitizing content in libraries and creating
worker training and educational software. The legislation calls for 30% of
the proceeds from spectrum auctions to be earmarked for the fund.
[SOURCE: Broadcasting&Cable, AUTHOR: Bill McConnell]
http://www.broadcastingcable.com/article/CA607814?display=News&referral=...
(free access for Benton's Headlines subscribers)

LAST WEEK (...OR, WHY I CAN'T MISS A NEWS CYCLE)

PANEL WOULD CUT PUBLIC BROADCASTING AID
A House Appropriations panel on Thursday approved a spending bill that
would cut the budget for public television and radio nearly in half and
eliminate a $23 million federal program that has provided some money for
producing children's shows that include "Sesame Street," "Clifford the Big
Red Dog," "Between the Lions" and "Dragon Tales." By a voice vote, the
House Appropriations subcommittee adopted a measure that would reduce the
financing of the Corporation for Public Broadcasting, the organization that
directs taxpayer dollars to public television and radio, to $300 million
from $400 million. The subcommittee also eliminated $39 million that
stations say they need to convert to digital programming and $50 million
for upgrading aging satellite technology that is the backbone of the PBS
network. The cuts in financing went significantly beyond those requested by
the White House and are likely to be approved next week by the full
Appropriations Committee and then by the House. Lobbyists for public
television and radio say they hope to have the money restored in the
version of the bill prepared by the Senate, where they have support from
several senior Republican members. The final legislation will be the
product of negotiations between the House and Senate.
[SOURCE: New York Times (6/10), AUTHOR: Stephen Labaton]
http://www.nytimes.com/2005/06/10/arts/television/10pbs.html?
(requires registration)
See also --
* House Panel Proposes Devastating Cuts in Federal Funding for Public
Broadcasting
"The actions of the House subcommittee are nothing less than a direct
attack on public television and radio. They are also an attack on some of
the last, locally controlled and independent media voices in our country.
This is not how a democracy is supposed to run. Supporters of Public
Broadcasting are marshalling their resources for this fight." (See more at
the URL below)
[SOURCE: Association of Public Television Stations]
http://www.apts.org/

STEVENS AIDE WITHDRAWS AS CANDIDATE FOR FCC
Christine Kurth -- a top aide to Senate Commerce Chairman Ted Stevens
(R-Alaska) who had been widely expected to be offered a seat on the FCC --
Thursday afternoon disclosed that she had withdrawn her name from
consideration for that post. Mrs. Kurth's husband, Timothy Kurth -- a
former policy adviser to House Speaker Hastert -- is currently a lobbyist
for the firm of Lundquist, Nethercutt & Griles. He represents several
telecommunications clients, including Motorola, Sprint and the U.S. Telecom
Association. the Kurths faced a situation that, if she had been nominated
and confirmed for an FCC slot, he would have had to give up his
telecommunications clients -- or she would have been required to recuse
herself from a variety of issues under FCC jurisdiction, even in cases when
her husband was not working on a particular issue. [Apparently, it is OK to
have a conflict of interest when writing telecom laws, just not enforcing
them.]
[SOURCE: National Journal's Insider Update, AUTHOR: Drew Clark]
http://www.njtelecomupdate.com/lenya/telco/live/tb-CTSU1118360050264.html
See Press Release --
* Christine Kurth Withdraws Name for Consideration to be an FCC Commissioner
http://commerce.senate.gov/newsroom/printable.cfm?id=238697

FCC MODIFIES DIGITAL TUNER REQUIREMENTS TO ADVANCE DTV TRANSITION
On June 9, the FCC denied a request by the Consumer Electronics Association
(CEA) and the Consumer Electronics Retailers Association (CERC) to delay
the date by which 50% of mid-size TV receivers manufactured and imported
must include built-in digital television (DTV) tuners. To further its
efforts to ensure that consumers are able to receive off-the-air digital
broadcast television services, the FCC also moved up the date by which all
mid-sized TV sets must include a digital television (DTV) tuner. The
Commission's rules already provide that all large TV sets (36" and larger)
must have built-in DTV tuners by July 1, 2005. Those rules also provide
that 50% of mid-sized sets (25"-36") must have DTV tuners by that date, and
that all mid-sized sets must have DTV tuners by July 1, 2006. The rules
also provide that all receivers with a screen size 13" or more, as well as
other all other TV receiving devices (such as VCRs, DVDRs, etc.) must have
DTV tuners by July 1, 2007. The CEA and CERC asked the Commission to
eliminate the 50% requirement for mid-sized sets, and to move up the date
for full compliance for mid-sized sets to March 1, 2006 to address certain
difficulties posed by the 50%. In its Report and Order, the Commission
denied the request for elimination of the intermediate 50% compliance
deadline, stating that such an action would delay the wider dissemination
of DTV tuners in products of this size and would be inconsistent with its
efforts to advance the DTV transition as rapidly as possible. The
Commission did move up the date for 100% compliance for mid-sized TV
receivers from July 1, 2006 to March 1, 2006, the earliest feasible date
according to the industry. In the same action, the Commission proposed to
move up the date by which all TV receivers with screen size 13" or larger
and other TV receiving devices, i.e., those without a viewing screen, must
have DTV tuners from July 1, 2007, to a date no later than December 31,
2006, the statutory target date for the end of the DTV transition and the
corresponding end of analog broadcast television transmissions. TV
Interface Devices should be required to meet this timetable. Finally it
asked whether a DTV tuner requirement should be extended to TV receivers
with a screen size smaller than 13." Public comment is sought on these
proposals.
[SOURCE: Federal Communications Commission]
Press Release:
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-259245A1.doc
Order: http://hraunfoss.fcc.gov/edocs_public/attachmatch/FCC-05-121A1.doc
Statement of support from Commissioner Abernathy:
http://hraunfoss.fcc.gov/edocs_public/attachmatch/FCC-05-121A2.doc
Statement of support from Commissioner Copps:
http://hraunfoss.fcc.gov/edocs_public/attachmatch/FCC-05-121A3.doc
See also --
* FCC Accelerates a Tuner Mandate
http://www.multichannel.com/article/CA607844.html?display=Policy&referra...
(free access for Benton's Headlines subscribers)
* FCC Issues Mixed Verdict On Digital Tuners
[SOURCE: Technology Daily, AUTHOR: Drew Clark]
http://www.njtelecomupdate.com/lenya/telco/live/tb-TGHU1118347732857.html

FCC OFFICIAL VOWS TOUGHER ENFORCEMENT OF DTV TUNER MANDATE
Contrary to what many believe, the FCC does have "an enforcement plan in
place" for compliance with the its new digital television tuner mandate,
said Alan Stillwell of the Commission's Office of Engineering & Technology.
With Commission rejection of a consumer electronics industry petition to
scrap the 50% compliance deadline on 25-36" sets, "we're going to continue
that same plan -- probably a little more aggressively," Stillwell said. The
Commission has many ways to enforce the mandate that haven't been
publicized, he said.
[SOURCE: Communications Daily, AUTHOR: Paul Gluckman]
(Not available online)

FCC REAFFIRMS RULES FOR HEARING AID COMPATIBLE DIGITAL WIRELESS TELEPHONES
On June 9, the Federal Communications Commission reaffirmed the timetable
for the development and sale of digital wireless telephones that are
compatible with hearing aids, and also sought comment on whether additional
rule changes are necessary to ensure that people with hearing loss have
reasonable access to digital wireless technologies. The Commission
originally adopted rules in 2003 to make digital wireless telephones
compatible with hearing aids and cochlear implants.
[SOURCE: Federal Communications Commission]
Press Release:
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-259248A1.doc
Statement of support from Commissioner Copps:
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-259248A3.doc
Statement of support from Commissioner Abernathy:
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-259248A2.doc
Statement of support from Commissioner Adelstein:
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-259248A4.doc

FCC MOVES CLOSER TO AUCTIONING SPECTRUM FOR ADVANCED WIRELESS SERVICES BY
IMPLEMENTING COMMERCIAL SPECTRUM ENHANCEMENT ACT
Last Thursday, the Federal Communications Commission sought comment on rule
changes needed to implement the Commercial Spectrum Enhancement Act (CSEA),
which was signed into law on December 23, 2004. A key element of CSEA is
the establishment of a "Spectrum Relocation Fund" to reimburse the
relocation costs of federal agencies currently operating on spectrum
reallocated from federal to non-federal use. The spectrum covered by CSEA
includes 216-220 MHz, 1432-1435 MHz, 1710-1755 MHz, and 2385 MHz-2390 MHz,
as well as other spectrum bands that may be reallocated from federal to
non-federal use. The 1710-1755 MHz band accounts for half of the spectrum
the Commission plans to auction as early as June 2006 for Advanced Wireless
Services, including so-called "3G" services. Under CSEA, an auction of
eligible frequencies may not conclude if the total cash proceeds of the
auction are less than 110 percent of the total estimated relocation costs
of the federal users. As the statute does not define "total cash
proceeds," the Commission determined that, for purposes of CSEA, "total
cash proceeds" should be defined as winning bids net of any applicable
discounts, such as small business bidding credits. The Commission also
sought comment on a number of prospective modifications designed to
implement CSEA and update its spectrum auction rules.
[SOURCE: Federal Communications Commission]
Press Release:
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-259249A1.doc

QUICKLY

VIEWERS WANT VNR IDs, POLL FINDS
Eight out of 10 viewers would not be turned off if news programs always
disclosed the source of third-party video -- i.e., video news releases.
That's according to a phone poll of 1000 respondents conducted by VNR
distributor D S Simon Productions. Four out of 10 respondents (42%) said
they would be even more likely to watch a program that disclosed video
sources, while 39% said such disclosures would not make them any less
likely to watch. Only 16% said they would be less likely to watch.
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
http://www.broadcastingcable.com/article/CA608087?display=Breaking+News&...
(free access for Benton's Headlines subscribers)

TV DEBATES: STILL BEYOND THE FRINGE
According to a new ruling by Federal Election Commission lawyers, the
Commission on Presidential Debates may continue to require candidates to
show that they have substantial support among voters before allowing them a
seat in televised debates. Currently, the Commission permits only
candidates who demonstrate in recognized polls that they have the support
of 15% of registered voters.
[SOURCE: Broadcasting&Cable, AUTHOR: Bill McConnell]
http://www.broadcastingcable.com/article/CA608143?display=Breaking+News&...
(free access for Benton's Headlines subscribers)

WHO'S A JOURNALIST? IT DEPENDS.
A new Annenberg Public Policy Center poll released Monday finds a split on
the perceived goals of big media corporations. While 48% of the public said
their first priority is to generate high profits for the owners, 46% said
it is to deliver high-quality news coverage. Among journalists, only 12%
said the top priority of corporate owners is to provide factual and timely
coverage. 49% say that the owners do try to provide quality coverage but
that business realities sometimes prevent this from happening. Ask members
of the press whether Rush Limbaugh and Bob Woodward are journalists and the
answers are somewhat predictable. But the public has a different view.
About the same percentage considers the radio talk show host and the author
and Washington Post editor to be journalists, says the survey by Annenberg.
Kathleen Hall Jamieson, the center's director, said the findings provide
"disturbing evidence that the public defines the word very differently from
the way that most journalists do, a conclusion buttressed by the fact that
40 percent said Bill O'Reilly... was a journalist and only 19 percent said
that George Will, the columnist and commentator, was one."
[SOURCE: Washington Post, AUTHOR: Howard Kurtz]
http://www.washingtonpost.com/wp-dyn/content/article/2005/06/13/AR200506...
(requires registration)

SHAPIRO, NAB: ALMOST STRANGE BEDFELLOWS?
Apparently, the National Association of Broadcasters has had some interest
in replacing outgoing President Edward Fritts with Consumer Electronics
Association President Gary Shapiro.
[SOURCE: Multichannel News, AUTHOR: ]
http://www.multichannel.com/article/CA607849.html?display=Breaking+News&...
(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 6/09/05

Two events at the FCC this week: an open meeting today and the Consumer
Advisory Committee meeting tomorrow (see you there). For these and other
upcoming media policy events, see http://www.benton.org/calendar.htm

Two sets of dates to keep in mind: 1) The Notice of Proposed Rulemaking on
the cable horizontal ownership proceeding has appeared in today's Federal
Register -- official comment date is July 8, and replies July 25. 2) The
Commission has published a notice in the Federal Register inviting the
public to comment on its rules with ten-year anniversary dates in the years
2002-2005. The Commission is seeking comment on whether those rules should
be continued without change, amended or rescinded in order to minimize any
significant impact those rules may have on small entities pursuant to
Section 610 of the Regulatory Flexibility Act. Comments are due on
September 1, 2005. (Notice, DA 05-1524, FR Doc 05-11170)

** The next Headlines will be posted TUESDAY, June 14 **

BROADCASTING
Front-Runner for Public Broadcast Agency Job Is Former GOP Chair
FCC Advances DTV Channel Election Process
NBC U Buying Diller Stake

INTERNET
A battle for the soul of the Internet
Regulators Worry Franchising Will Slow IP Video
Do-it-yourself Information Online

TELECOM
FCC Struggles Over

Benton's Communications-related Headlines for 6/08/05

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

TELEVISION
Martin Speaks Favorably On DTV 'Hard Date'
NCTA Might Support National Video Franchising for Telecom
Bells Prepare Counterattack On Video Services Issue
Nets: FCC Multicast Decision 'Fatally' Flawed
NBC, Touchstone Chiefs: All 6 Nets Won't Survive
Qualcomm Wants to Turn Off Analog TVs
FCC Keeps the Faith
Conn. Network Gets Statewide Carriage

RADIO
Radio Sector Raises Volume On Deal Talk

FCC
Questions for