Dec 12, 2008 (Whoops! Pentagon Mixed Propaganda and PR)

BENTON'S COMMUNICATIONS-RELATED HEADLINES for FRIDAY DECEMBER 12, 2008

The Telecom World continues to spin -- see next week's events at http://benton.org/calendar/2008-12-14--P1W

FCC NEWS
   Dec 18 FCC Meeting Agenda
   In Defense of Kevin Martin
   Bush, Martin at war over AWS-3 spectrum auction
   FCC free Internet plan faces lawmaker opposition
   Consumer Groups Can't Support Free Broadband Proposal
   Telcos: Use USF, Not Free Broadband Plan, to Address Digital Divide

THE TRANSITION
   How does Obama's broadband New Deal come to fruition?
   Software industry pushes for more IT-driven government solutions

BROADCASTING/CABLE
   House Passes DTV Transition Bill
   Almost Quarter Of Households Get HDTV
   CT Broadcasters Get Feedback From DTV Test
   DC TV Station Moves to One-Person News Crews

GOVERNMENT & COMMUNICATIONS
   Pentagon May Have Mixed Propaganda With PR
   Tribune Co. subpoenaed in Blagojevich corruption case

TELECOM
   Sacramento set to start taxing text message and broadband phone service
   Bell Canada sale dies slow, painful death
   As Buyout Fails, Bell Canada Seeks to Bolster a Struggling Business

QUICKLY -- US Needs 'Smart' Network Management; About 40 pct of docs use electronic records; This year's top 30 countries for offshore services; Sen Collins Hops On New Media Bandwagon; Could the stars be aligning for a Google-NY Times merger?; East-West divide in media habits: survey; Tech Trends to Expect in 2009

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FCC NEWS

DEC 18 MEETING AGENDA
[SOURCE: Federal Communications Commission]
The Federal Communications Commission will hold an Open Meeting on Thursday, December 18, 2008 tentatively at 10:00 a.m. but definitely in Room TW-C305, at 445 12th Street, S.W., Washington (DC). The FCC will consider: 1) spectrum auction rules/free broadband proposal, 2) wireless license renewal, 3) DTV translator service, 4) cable carriage rules, 5) violations of the Commission's DTV consumer education requirements, 6) wireless, enhanced 911 location requirements, and 7) Satellite Digital Audio Radio Service. Admission is free; you pay at the door. There are plenty of seats; you sit on the floor. Can't make it in person? Audio/Video coverage of the meeting will be broadcast live with open captioning over the Internet from the FCC's Audio/Video Events web page at www.fcc.gov/realaudio.
http://benton.org/node/19798
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IN DEFENSE OF KEVIN MARTIN
[SOURCE: PublicKnowledge, AUTHOR: Art Brodsky]
[Commentary] Worst. Week. Ever. For Federal Communications Commission Chairman Kevin Martin. On Tuesday, House Commerce Committee Democrats release a scathing report on his management of the agency and House Republicans do little to defend him. On Wednesday, the Bush Administration objects to Martin's free wireless broadband plan (via new spectrum auction rules). Finally, on Thursday, the Wall Street Journal, normally the Administration's in-house editorial page, piled on with an editorial attacking Martin for granting "Political Favors at the FCC" on the same issue. Heaven forbid there should be a free service that could benefit minorities or rural residents who are the most disadvantaged when it comes to receiving broadband service. Could there be a case in which markets don't work as they should? Perhaps by reading the newspaper we could find one. The Journal's editorial was about chasing evil villains out to corrupt the system. In this case, said evil-doer is the venture capitalist John Doerr who, if you think about it, is the type of person the Journal should admire. He made a lot of money the old-fashioned way, through capitalism. In this instance, the Journal sees Doerr as trying again for a "sweetheart deal" that Martin is willing to give him.
http://benton.org/node/19797
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BUSH, MARTIN AT WAR OVER AWS-3 SPECTRUM AUCTION
[SOURCE: RCR Wireless News, AUTHOR: Jeffrey Silva]
Federal Communications Commission Chairman Kevin Martin and the Bush administration are on a collision course over a possible Dec. 18 vote on a free, family-friendly wireless auction plan, uncharacteristically bringing into public view a high-stakes policy dispute between the Republican White House and one of its top appointees. In a letter to Martin on the eve of the public release of the official agenda for next week's FCC meeting, Commerce Secretary Carlos Gutierrez urged the nation's top telecom regulator not to move forward with the advanced wireless services-3 initiative. "The administration believes that the AWS-3 spectrum should be auctioned without price or product mandates," stated Gutierrez in the two-page letter. "The FCC should rely on market forces to determine the best use of the spectrum, subject to appropriate government rules to prevent harmful interference." There has been speculation for months that Gutierrez might weigh in on the FCC's AWS-3 controversy. The commerce secretary's letter closely tracks one sent by Meredith Attwell-Baker, acting head of the National Telecommunications and Information Administration, last month. Congress in 1993 said anticipated revenue alone should not drive the formation of auction rules. FCC spokesperson Robert Kenny said, "We agree that free market forces should drive competition, but we believe that providing free basic broadband to consumers is a good thing. It's not just about raising the most money as you can, but about advancing policies that bring benefits to consumers and ensure the most efficient use of the spectrum."
http://benton.org/node/19796
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FCC FREE INTERNET PLAN FACES LAWMAKER OPPOSITION
[SOURCE: Reuters, AUTHOR: ]
Sen Jay Rockefeller (D-WV), expected to chair the Senate Commerce Committee in the next Congress, is expected to ask the Federal Communications Commission today to delay voting on a controversial auction of radio spectrum, which includes a requirement for free Internet services. He'd prefer the FCC refrain from taking up major items while it oversees the February 2009 transition to digital television. The FCC is scheduled to consider the action, known as the AWS-3, at its meeting next on Thursday.
http://benton.org/node/19818
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CONSUMER GROUPS CAN'T SUPPORT FREE BROADBAND PROPOSAL
[SOURCE: Broadcasting&Cable, AUTHOR: ]
Free Press, Media Access Project, Consumers Union, and Public Knowledge have told the Federal Communications Commission that they cannot support FCC Chairman Kevin Martin's free broadband proposal if it includes content filtering as part of the requirement. The consumer groups favor free broadband service, but not if content filtering that must be opted out of is part of the plan. "To the extent that mandatory or "opt-out" filtering remains part of the proposal," they said, "commenters must oppose the proposal as a whole."
http://benton.org/node/19795
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TELCOS: USE USF, NOT FREE BROADBAND PLAN, TO ADDRESS DIGITAL DIVIDE
[SOURCE: Federal Communications Commission, AUTHOR: AT&T et al]
AT&T leads a list of group of eighteen telecommunications companies and organizations that wrote the Federal Communications Commission in support of using existing Lifeline and Link Up universal service programs to make broadband access more affordable for low income households. They contrast this proposal with the FCC Chairman Martin's proposal to auction of some spectrum will a requirement to provide nationwide, free, wireless broadband. That proposal, they write, "would not be means-tested or in any way limited to low-income users, and in fact would impose substantial up-front equipment costs on end-users."
http://benton.org/node/19794
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THE TRANSITION

HOW DOES OBAMA'S BROADBAND NEW DEAL COME TO FRUITION?
[SOURCE: Lynnette Luna, AUTHOR: FierceBroadband]
[Commentary] President-elect Barack Obama's proclamation this past weekend that broadband and national Internet access must be universal sounded the gong that this priority will be the part of what observers call his "new New Deal," and is making the broadband wireless community downright gaga over the prospects. In the early 20th Century, the New Deal meant money for highway construction and other public works projects, but in the 21st Century, broadband is getting added to the list. How does this all come to fruition? How will the funds be doled out, what companies and technology will benefit and what strings will be attached in terms of regulations? Will it come in the form of support for nationwide operators or a nationwide licensee that would require the winning bidder to open up 25 percent of its network for free broadband access? While Obama's plan is being applauded by consumer groups across they country, the devil is certainly in the details. Let's hope it's something Obama can effectively make reality without it being mired down in lobbying and politics during the next four years.
http://benton.org/node/19793
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SOFTWARE INDUSTRY PUSHES FOR MORE IT-DRIVEN GOVERNMENT SOLUTIONS
[SOURCE: C-Net|News.com, AUTHOR: Stephanie Condon]
When President-elect Barack Obama appoints a chief technology officer to the White House, he should make the new appointee a part of his senior economic policy team and the chief "evangelist" for innovation-spurring policies, the software and hardware industries say. Craig Newmark said Obama should seek for the CTO someone who can foster public-private sector partnerships and "crack the whip" to bring about necessary reforms in tech policy. "The government isn't ready in some respects to use these new technologies," Newmark said. "When it comes to computer technology, there are some really smart people who can do something in a month that it would take the government a year to do." Pushing a national broadband strategy and overhauling the government's information technology infrastructure should be near the top of any tech czar's to-do list, Newmark argued. And, given the array of technological challenges facing the next administration, Newmark recommended the president-elect keep his campaign pledge to elevate the position to a Cabinet-level post. [more at the URL below]
http://benton.org/node/19792
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BROADCASTING/CABLE

HOUSE PASSES DTV TRANSITION BILL
[SOURCE: Rep Lois Capps (D-CA), AUTHOR: Press release]
On Wednesday the US House of representatives approved -- by unanimous consent -- the Short-term Analog Flash and Emergency Readiness Act, a bill sponsored by Rep Louis Capps in the House and Sen Jay Rockefeller (D-WV) in the Senate. The legislation allows for the short-term continued analog broadcast of essential information after the February 18, 2009 nationwide transition to digital television (DTV), including broadcasts of emergency information. The legislation now goes to the President who is expected to sign the bill. Under the SAFER Act, after February 18th households that may not have prepared their televisions to receive digital signals will see a "slide" on their screen—in both English and Spanish— informing them that the transition to digital has taken place, and providing a phone number for further information on how to arrange for their televisions to receive digital signals. More importantly, they will also receive emergency weather and public safety information that is broadcast over digital airwaves. The SAFER Act would ensure that this information was available for 30 days following the transition to all-digital broadcasting. National Association of Broadcasters President David Rehr Thursday urged President Bush to sign the legislation.
http://benton.org/node/19780
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ALMOST QUARTER OF HOUSEHOLDS GET HDTV
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
According to Nielsen, 23.3% of US households are watching high-definition, digital TV (HDTV) programing. Nielsen attributed the rise -- from just 10% in July 2007 -- to lower prices for sets, more HD programming and the impetus of the approaching DTV transition date of Feb 17, 2009. Sports is the most popular HDTV programming, with HDTV viewers watching 54% more sports. But folks apparently like to get a good look at their elected officials, with HDTV viewers watching 25% more political programming than folks without HDTVs. Washington (DC) had the highest penetration rates among the largest markets at 31.1%, followed closely by Boston at 30.5% and New York at 30.2%. Detroit had the lowest at 20.9%.
http://benton.org/node/19790
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CT BROADCASTERS GET FEEDBACK FROM DTV TEST
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
According to the Connecticut Broadcasters Association (CBA), a Dec 3 test of viewers preparedness for the Feb 17, 2009 switch to digital broadcasting generated 1,706 calls to a toll-free hotline. Almost 84% percent of those were from analog over-the-air viewers, and over a thousand of the viewers, or almost 60%, requested DTV-to-analog converter box coupons. More than 115 TV stations participated in the test.
http://benton.org/node/19789
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DC TV STATION MOVES TO ONE-PERSON NEWS CREWS
[SOURCE: Washington Post, AUTHOR: Paul Farhi]
The march of technology and the shrinking economy are beginning to take a toll on the traditional means of television news-gathering: the TV news crew. Under a new agreement reached this week with its labor unions, Gannett-owned Washington (DC) CBS affiliate WUSA (Channel 9) will become the first station in Washington to replace its crews with one-person "multimedia journalists" who will shoot and edit news stories single-handedly. The change will blur the distinctions between the station's reporters and its camera and production people. Reporters will soon be shooting and editing their own stories, and camera people will be doing the work of reporters, occasionally appearing on the air or on in video clips. For decades, TV journalists have worked in teams, with the lines of responsibility regulated by union rules or simple tradition. Stories were covered by a crew consisting of a camera operator and a correspondent (and further back, by a sound or lighting technician); their work was overseen by a producer and their footage assembled into a finished story by an editor. But technology -- handheld or tripod-mounted cameras, laptop editing programs and the Internet -- have made it possible for one person to handle all those assignments, station managers say.
http://benton.org/node/19817
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GOVERNMENT & COMMUNICATIONS

PENTAGON MAY HAVE MIXED PROPAGANDA WITH PR
[SOURCE: Washington Post, AUTHOR: Walter Pincus]
The Pentagon's inspector general said yesterday that the Defense Department's public affairs office may have "inappropriately" merged public affairs and propaganda operations in 2007 and 2008 when it contracted out $1 million in work for a strategic communications plan for use by the military in collaboration with the State Department. Strategic communications programs, which have become a major part of the Pentagon's information operations carried out in the "war of ideas" in Iraq, Afghanistan and the Middle East, should be under the oversight of the undersecretary of defense for policy, the IG added. The Office of the Assistant Secretary of Defense for Public Affairs "should only perform strategic communications responsibilities related to its public affairs mission," the report said. It called attention to a May 2005 Defense Department publication titled "Public Affairs," which stated that public affairs and information operations "differ with respect to the audience, scope and intent and must remain separate." The inspector general also raised questions about the Office of Public Affairs' use of funds and personnel from the Armed Forces Information Service to carry out its functions without specific authority. AFIS, which was recently renamed Defense Media Activity, runs Pentagon internal communications including Stars and Stripes as well as the Armed Forces Radio and Television Service.
http://benton.org/node/19819
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TRIBUNE CO SUBPOENAED IN BLAGOJEVICH CASE
[SOURCE: Crain's Chicago Business, AUTHOR: Lorene Yue]
Tribune Co. was subpoenaed by federal authorities in relation to corruption charges levied on Tuesday against Gov Rod Blagojevich (D-IL). The company was asked to provide documents that would relate to allegations that now-Gov Blagojevich and John Harris, his chief of staff, conspired to get members of the Chicago Tribune editorial board fired in exchange for help in selling the company-owned Wrigley Field.
http://benton.org/node/19787
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TELECOM

SACRAMENTO SET TO START TAXING TEXT MESSAGE AND BROADBAND PHONE SERVICE
[SOURCE: Sacramento Bee, AUTHOR: Niesha Lofing]
On Nov 4, Sacramentomatoes approved the "Utility User Tax Reduction and Fairness Measure," a new tax that goes into effect today. It includes a larger variety of communications services -- including text messages and broadband phone services. The tax update also includes lowering the user's tax for land-line and cell phones from 7.5 percent to 7 percent. Russ Fehr, Sacramento (CA) city treasurer, said the amount someone is taxed will vary depending on what types of communications services they have with their service provider. In other words, if you have a BlackBerry with unlimited texting and phone calls, your monthly bill is higher than someone with a cell phone plan of $29.99 per month. Traditional cell phone users, who use a land-line and a cell phone for only the occasional call, likely will see a tiny decrease in their bill because of the five-tenths of a percent the utility tax decreased, he said. "The vast majority of households will see a rate reduction," Fehr said. "A few households and businesses will see an increase." While the tax takes effect Friday, service providers have up to 60 days in which to include the tax on users' bills. City officials likely won't begin to see whether the tax is generating more revenue for at least a year and a half, Fehr said.
http://benton.org/node/19814
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BELL CANADA SALE DIES SLOW, PAINFUL DEATH
[SOURCE: Fortune, AUTHOR: Stephanie Mehta]
A deal that seemed to have nine lives - the $51 billion sale of Canada's largest telephone company, the largest leveraged buyout ever proposed - finally died early Thursday. The cause of death: solvency issues. While BCE and its would-be buyers have agreed to part ways, they are squabbling over whether BCE is owed $1.2 billion in termination fees. The buyers - a consortium led by private equity powerhouse Providence Equity Partners and Ontario Teachers' Pension Plan, a major shareholder of BCE - argue that they don't have to pay because terms of the deal were not met. The end of the BCE buyout marks the latest contentious turn in a deal fraught with drama, dating back to the initial bidding war for the Canadian telecom in early 2007.
http://benton.org/node/19785
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AS BUYOUT FAILS, BELL CANADA SEEKS TO BOLSTER A STRUGGLING BUSINESS
[SOURCE: New York Times, AUTHOR: Ian Austen]
With the record-setting $50 billion leveraged buyout of Bell Canada all over except for the potential litigation, the company, Canada's largest telecommunications company, once again faces a possibly bigger issue: reversing the seemingly relentless decline of its business. Bell is a humbled giant. It is now the No. 3 player in Canada's wireless market behind Rogers Communications, which also leads the cable television business, and Telus, the dominant telephone company in Alberta and British Columbia. Bell's satellite television service has always lagged well behind cable. And Rogers in Ontario, along with Vidéotron in Quebec, are now poaching about 10 percent of Bell's traditional local phone customers a year. Cable companies now provide about one-quarter of Canada's local telephone service after entering the business in 2004. Many of Bell's most pressing problems date back to the technology boom of the late 1990s. At that time, Bell focused on media company acquisitions rather than on network upgrades. It paid premium prices for, among other things, Canada's largest private television network, CTV, and control of The Globe and Mail newspaper. Bell never fulfilled plans to start selling television through an upgraded wired network about three years ago. That leaves it offering only a satellite television service. Because Canada is far north of the equator, where the system's satellites orbit, many potential customers are unable to receive it.
http://benton.org/node/19816
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QUICKLY

US NEEDS 'SMART' NETWORK MANAGEMENT
[SOURCE: CongressDaily, AUTHOR: Andrew Noyes]
A new paper from the Information Technology and Innovation Foundation finds that smart broadband networks paired with effective management is the best way to ensure a fair allocation of Internet resources and ensure good performance for all types of applications. But smart networks and management are not alternatives for next-generation broadband infrastructure, which are essential for delivering new and high-bandwidth content. ITIF says network capacity needs to grow, but demand always seems to catch up with capacity.
http://benton.org/node/19788
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ABOUT 40 PCT OF DOCS USE ELECTRONIC RECORDS
[SOURCE: Reuters, AUTHOR: Maggie Fox]
Just under 40 percent of US doctors use electronic medical records and many say the system they use is only minimally functional, according to a survey by the National Center for Health Statistics. Only 4 percent of doctors said their systems were fully functional -- a clear indication of just how many physicians rely on outdated paper records. President-elect Barack Obama has said he would make electronic medical records a central part of his healthcare reform plan and promised to spend $50 billion doing so over five years. But Obama also said he is not sure how to fund his initiatives given the recession, growing unemployment and other aspects of the economic crisis. Many experts agree that having electronic medical records would improve healthcare, prevent errors and save costs.
http://benton.org/node/19791
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THIS YEAR'S TOP 30 COUNTRIES FOR OFFSHORE SERVICES
[SOURCE: InfoWorld, AUTHOR: John Ribeiro]
One of India's key advantages as an offshore outsourcing location was its lower cost. But it may be losing this advantage to countries like Pakistan and Vietnam, which now offer staff at far lower costs than in India. Vietnam, with a significant French-speaking population, is also at an advantage as French-speaking countries in Europe embrace offshore outsourcing. India still has an edge over these locations if clients consider the maturity of the staff in the area of outsourcing, and their ability to hire more staff in India. A number of countries have positioned themselves as credible alternatives to Brazil, Russia, India, and China, popularly referred to as the BRIC countries. Mexico, Poland, and Vietnam have continued to strengthen their position against leading alternatives.
http://benton.org/node/19786
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SEN COLLINS HOPS ON NEW MEDIA BANDWAGON
[SOURCE: CongressDaily, AUTHOR: Winter Casey]
Sen Susan Collins (R-ME) has hired Lance Dutson as her new media director charged with oversight of online forums, blogs, increased use of the Web site, Web video initiatives, and user-generated content. [more at the URL below]
http://benton.org/node/19784
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COULD STARS BE ALIGNING FOR A GOOGLE-NY TIMES MERGER?
[SOURCE: TheDeal.com, AUTHOR: Gerald Magpily]
Should Google buy the New York Times? The possibility of this dream hookup is just fantasy because the owners of the Times -- the Sulzberger family -- for now, seem emboldened to hold on to the company for as long as it can. The Sulzbergers, however, are living on borrowed time as the family is facing pressure on all fronts to save the company, which is hemorrhaging as the slow economy has decimated its advertising and subscription revenue. Already, the media company took the extreme move of borrowing $250 million from their newly built headquarters, but that seems to be a temporary band-aid on what very well could be a mortal wound.
   Could the stars be aligning for a Google-NY Times merger?

EAST-WEST DIVIDE IN MEDIA HABITS: SURVEY
[SOURCE: Reuters, AUTHOR: Andrew Wallenstein, James Li]
A new online survey conducted by Nielsen finds that while Western countries tend to be heavy users of such media hardware as DVD players and gaming consoles, next-generation devices like video-enabled handsets are more popular in up-and-coming markets, particularly in Asia. The online population of the Philippines, for instance, emerged first among the 52 countries surveyed with the highest levels of usage across a range of devices, one of five Asia-Pacific countries that filled the top 10. The Philippines also topped a pair of rankings that tracked usage of digital media and video games. The findings emerged from the entertainment portion of the biannual Nielsen Global Online Consumer Survey, which reached 26,000 online users in September. Rankings were computed by measuring a range of scores in response to thematically similar survey questions.
http://benton.org/node/19815
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TECH TRENDS TO EXPECT IN 2009
[SOURCE: BusinessWeek, AUTHOR: Arik Hesseldahl]
Mark Anderson is chief executive of Strategic News Service, a newsletter circulated to C-level tech executives. Each year he makes prognostications concerning technology and the economy. Last year he predicted a breakout year for ultramobile PCs, and he said Apple (AAPL) would launch one. The computer maker's MacBook Air came close. In late 2006, Anderson predicted the launch of the first PC with solid-state hard drives, which happened in 2007. Here's some of his expectations for 2009: 1) People spend more time at home with bigger TVs and 2) New tools called Internet assistants will help wireless devices send demanding computing tasks via the wireless Web to other computers or to servers—off in what's known as "the cloud."
http://benton.org/node/19813
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