LEGISLATION
It's Time for New Communications Laws
Internet Access Tax Debate
Ergen, NAB Clash Over HDTV
BROADBAND/INTERNET
Broadband: What's The Holdup?
Will Naked DSL Chill the Cable Guys?
Report Raises Questions About Fighting Online Piracy
44% of U.S. Internet Users have Contributed Content to the Internet
Maryland Voting Terminals Face Super Tuesday Test
BROADCASTING
DTV: Should We Bet the Farm on a Digital-Only Strategy?
What if Kerry Wins? (A Comcast-Disney Story)
Indecency and Satellite Radio
UNIVERSAL SERVICE
Recommendations From Joint Board on Universal Service
Telephone Penetration Report
Communications-related Headlines is a free online news summary service=20
provided by the Benton Foundation (www.benton.org). Posted Monday through=20
Friday, this service provides updates on important industry developments,=20
policy issues, and other related news events. Headlines are compiled by=20
Kevin Taglang (ktaglang( at )etpost.net) -- we welcome your comments.
LEGISLATION
IT'S TIME FOR NEW COMMUNICATIONS LAWS
Sometimes, writes Donny Jackson, "the best way to provide regulatory=20
clarity is to take matters out of the hands of regulators." Clarity, he=20
argues, comes from well-written laws, not from interpretation by regulators=
=20
or the courts. So he finds news that Congress will consider a bill on=20
Internet telephone service (VoIP) encouraging. Most telecommunications law=
=20
was written to deal with regulating phone monopolies. VoIP, perhaps more=20
than any other present issue, demands a refashioning of the old rules of=20
the game.
[SOURCE: Telephony's Regulatory Insider, AUTHOR: Donny Jackson=20
djackson( at )primediabusiness.com]
INTERNET ACCESS TAX DEBATE
Sens George Allen (R-VA), Ron Wyden (D-OR), Conrad Burn (R-MT), John Ensign=
=20
(R-NV), Gordon Smith (R-OR) and John Sununu (R-NH) sent a "Dear Colleague"=
=20
to fellow members of the Senate equating support for S-2084, sponsored by=20
Sen Lamar Alexander (R-TN) and Thomas Carper (D-DE), with support of taxing=
=20
Internet access. Sens Allen and Wyden introduced S-150, a bill that would=20
permanently prohibit taxation of Internet access. The Alexander-Carper bill=
=20
would enact just a two-year moratorium on such taxes. The Dear Colleague=20
letter says S-2084 would =93authorize existing illegal taxes on Internet=20
access=94 for DSL and =93authorize new taxes=94 by defining
Internet access as only connected to the consumer, allowing backbone and=20
backhaul services to be taxed. All signees are members of the Senate=20
Commerce Committee which has jurisdiction over the competing bills. Both=20
bills have 11 co-sponsors and supporters would like to have a up-or-down=20
vote on both bills. S-150 has passed out of the Commerce Committee while=20
S-2084 has just been referred there.
[SOURCE: Communications Daily, AUTHOR: Patrick Ross]
(Not available online)
ERGEN, NAB CLASH OVER HDTV
EchoStar Communications chairman and CEO Charlie Ergen will speak at a=20
lunch organized by the Progress and Freedom Foundation this week (see=20
http://www.pff.org/news/news/2004/021904ergenevent.html) and pitch an idea=
=20
concerning the reauthorization of the Satellite Home Viewer Improvement Act=
=20
of 1999 (SHVIA). Mr Ergen wants authority to take HDTV feeds from network=20
affiliates in New York and Los Angeles and sell them in packages to=20
consumers around the country who can't pick up the same programming=20
locally. Local broadcasters hate the idea fearing that those network feed=20
will cut into the audiences of local network affiliates and cost them ad=20
revenue. To do this, the law would need to be changed as consumers who=20
currently can pick up a network's local affiliate via antenna are=20
ineligible to purchase the analog or digital signal of a distant network=20
feed. Rep. Lamar Smith (R-TX) is the chairman of the House subcommittee=20
that will take the lead in SHVIA reauthorization. He's indicated that Mr.=20
Ergen's plan will probably not be in the original bill he introduces on=20
this matter -- but provisions making possible could be added later by=20
either the House or the Senate.
[SOURCE: Multichannel News, AUTHOR: Ted Hearn]
http://www.multichannel.com/article/CA386955?display=3DPolicy
(requires subscription)
BROADBAND/INTERNET
BROADBAND: WHAT'S THE HOLDUP?
More focused national policy, less cumbersome regulation, and more densely=
=20
populated regions in Korea and Japan have lead to faster, cheaper broadband=
=20
service than we enjoy here in the US. Broadband is available to 89% of all=
=20
U.S. households, but only 18% subscribe [OK... different articles,=20
different sources, different numbers] as compared to South Korea, the=20
world's broadband leader, where 73% of households subscribe to high-speed=20
Internet. Japan and Korea have made the deployment of such services a=20
national priority. BW writes that deregulation is the key improving the US=
=20
broadband market; classifying phone companies' DSL and cable operators'=20
cable-modem operations as "information services" will exempt them from=20
sharing lines with competitors. And what will consumers get if broadband=20
systems are deployed that handle speeds: more online video, music and games.
[SOURCE: BusinessWeek, AUTHOR: Steve Rosenbush et al]
http://www.businessweek.com/technology/content/feb2004/tc20040224_9395.htm
WILL NAKED DSL CHILL THE CABLE GUYS?
Last Wednesday we reported that Qwest was to start offering something=20
called "Naked DSL," high-speed Internet service "unbundled" from standard=20
phone service. Salkever wonders if the move will help kickstart broadband=20
competition between cable companies and phone companies into a higher gear.=
=20
20% of all U.S. households have a broadband connection: Cable now has about=
=20
64% of the market vs. 36% for the DSL carriers, mainly the Bells. Rather=20
than pay the $30 to $50 that most local-phone service now costs per month,=
=20
plus $25 to $35 for DSL service, some consumers are choosing instead to pay=
=20
$40 to $50 per month for a cable modem on top of their regular cable=20
service and pocket the difference. "Naked DSL" offers may win back some of=
=20
those customers and others who want to switch to just cellular for their=20
phone needs. This strategy could work particularly well for Verizon, SBC,=20
and BellSouth, all of which have an ownership stake in a big cellular=20
operation. That's something the cable companies, which generally lack the=20
mobile-phone option, will have trouble competing against down the road --=20
if the Bells can market these bundles effectively.
[SOURCE: BusinessWeek, AUTHOR: Alex Salkever]
http://www.businessweek.com/technology/content/feb2004/tc20040227_8296_t...
.htm
REPORT RAISES QUESTIONS ABOUT FIGHTING ONLINE PIRACY
Former Clinton Administration advisor Elliot Maxwell is chief author of a=20
new report, "Promoting Innovation and Economic Growth: The Special Problem=
=20
of Digital Intellectual Property," which tries to find a middle ground in=20
the digital piracy debate -- trying to find a balance between the rights of=
=20
content creators and of the public. The report will be released today by=20
the Committee for Economic Development, a Washington policy group that has=
=20
its roots in the business world. "We are sympathetic to the problems=20
confronting the content distribution industry," reads the report. "But=20
these problems - perfect copies of high-value digital works being=20
transmitted instantly around the world at almost no cost - require clear,=20
concentrated thinking, rather than quick legislative or regulatory action."=
=20
Recommendations in the report include: the private use of so-called digital=
=20
rights management systems to place some restrictions on copying, so long as=
=20
they are not required by government and do not impose too great a burden on=
=20
consumers; finding economic tools that could encourage copyright holders=20
to allow their works to enter the public domain somewhat earlier than the=20
law allows; and a two-year moratorium on changes to copyright laws and=20
regulations to allow for more public debate.
[SOURCE: New York Times, AUTHOR: John Schwartz]
http://www.nytimes.com/2004/03/01/technology/01rights.html
(requires registration)
44% OF U.S. INTERNET USERS HAVE CONTRIBUTED TO THE INTERNET
In a national phone survey between March 12 and May 20, 2003, the Pew=20
Internet & American Life Project found that more than 53 million American=20
adults have used the Internet to publish their thoughts, respond to others,=
=20
post pictures, share files and otherwise contribute to the explosion of=20
content available online. The most eager and productive content creators=20
break into three distinct groups: 1) Power creators are the Internet users=
=20
who are most enthusiastic about content-creating activities. They are young=
=20
=96 their average age is 25 =96 and they are more likely than other kinds of=
=20
creators do things like use instant messaging, play games, and download=20
music. And they are the most likely group to be blogging. 2) Older creators=
=20
have an average age of 58 and are experienced Internet users. They are=20
highly educated, like sharing pictures, and are the most likely of the=20
creator groups to have built their own Web sites. They are also the most=20
likely to have used the Internet for genealogical research. 3) Content=20
omnivores are among the heaviest overall users of the Internet. Most are=20
employed. Most log on frequently and spend considerable time online doing a=
=20
variety of activities. They are likely to have broadband connections at=20
home. The average age of this group is 40.
[SOURCE: Pew Internet & American Life Project]
http://www.pewinternet.org/reports/toc.asp?Report=3D113
MARYLAND VOTING TERMINALS FACE SUPER TUESDAY TEST
A growing chorus of activists and computer experts say many of e-voting=20
systems are prone to the bugs, glitches and security holes familiar to any=
=20
computer owner, but that wouldn't stop voters from using the touch-screen=20
voting machines in Tuesday's primaries. "I know enough about computer=20
systems to know there's no way to achieve that level of integrity with the=
=20
current technology," said Stanford University computer science professor=20
David Dill. Advocates say voters would be more likely to trust e-voting=20
systems if they could print out each vote for review after it was cast, as=
=20
California will require by 2006.
[SOURCE: Reuters, AUTHOR: Andy Sullivan]
http://www.reuters.com/newsArticle.jhtml?type=3DinternetNews&storyID=3D4...
58§ion=3Dnews
BROADCASTING
DTV: SHOULD WE BET THE FARM ON A DIGITAL-ONLY STRATEGY?
Early last month Headlines reported on a plan put forward by public=20
broadcasters to return analog TV spectrum early in return for a trust fund=
=20
to support public broadcasting (see=20
http://owa.benton.org/listserv/wa.exe?A2=3Dind0402&L=3Dbenton-compolicy&...
l&S=3D&P=3D295).=20
In the latest Current, public TV station GM Dennis Haarsager asks if the=20
plan is really good for public broadcasting which, he asserts, has tried=20
harder than any other segment of the broadcast industry to make the=20
transition to digital work. He wonders if perhaps the early move to digital=
=20
only broadcasting (DOB) relies too much on cable and satellite to deliver=20
public broadcasting signals. Although there's some problems with consumers=
=20
getting digital signals over the air, Haarsager suggests that it should not=
=20
be abandoned yet and to keep an eye on alternative distribution methods=20
including "open spectrum" and broadband. There are also a number of markets=
=20
where there's a large number of viewers and/or a larger than average=20
percentage of viewers to still receive signals over the air. These viewers=
=20
may be lost if public broadcasting goes DOB since, he writes, "I can't=20
imagine that set-top boxes will ever effectively become a welfare item in=20
the United States."
[SOURCE: Current, AUTHOR: Dennis Haarsager]
http://www.current.org
WHAT IF KERRY WINS?
If Sen John Kerry goes on to win the nomination of the Democratic Party and=
=20
then the general election for president, how might Comcast's possible=20
merger with Disney be effected? Glad you asked. Seers say then-President=20
Kerry would tap FCC Commissioner Michael Copps to chair the Commission who,=
=20
in turn, would likely impose a number of conditions on the media deal. The=
=20
debate over imposing open-access requirements on cable systems might be=20
revived, forcing Comcast to carry competing Internet service providers on=20
its broadband network. Fantasy Chairman Copps might also want to address=20
programming by minorities, consumer pay-TV rates and indecency. The=20
question for Comcast's Brian Roberts is deciding whether the price of=20
winning approval from a Kerry FCC is too high. "Will the level of=20
conditions be so deep," muses Legg Mason analyst Blair Levin, "that he=20
won't do the deal?"
[SOURCE: Broadcasting&Cable, AUTHOR: Bill McConnell]
http://www.broadcastingcable.com/article/CA386982?display=3DWashington
(requires subscription)
INDECENCY AND SATELLITE RADIO
Large, commercial radio broadcasters may be firing "shock jocks" who=20
violate indecency rules, but satellite radio may offer a new home to these=
=20
DJs. That's because indecency rules do not apply to XM and Sirius satellite=
=20
radio services and providing spicy programming may be another way to=20
differentiate the pay services from free, over-the-air radio. Both=20
companies are suffering through large financial losses and, combined, have=
=20
only signed up about 2 million customers so far.
[SOURCE: Wall Street Journal, AUTHOR: Sarah McBride sarah.mcbride( at )wsj.com &=
=20
Andy Pasztor andy.pasztor( at )wsj.com]
http://online.wsj.com/article/0,,SB107809808894842347,00.html?mod=3Dpoli...
%5Fprimary%5Fhs
(requires subscription)
UNIVERSAL SERVICE
RECOMMENDATIONS FROM JOINT BOARD ON UNIVERSAL SERVICE
The Federal-State Joint Board on Universal Service voted on Friday on a set=
=20
of recommendations which the FCC now has one year to act upon. In response=
=20
to fears the Universal Service Fund (USF) may be overburdened, the Board=20
recommended that for rural customers, subsidies reduce the costs of just=20
one phone line per household. But some members of the Board dissented on=20
this recommendation writing that it is =93inconsistent with Congress=92=
intent=94=20
and =93would reduce incentives for deployment of both wireless and wireline=
=20
networks.=94 The Board also made recommendations for how states should=20
determine which carriers are eligible for USF subsidies in rural areas.=20
Members of the board wrote that =93we must take greater care in examining=
the=20
public interest to determine the wisdom of multiple ETCs [eligible telecom=
=20
carriers] in rural, high cost areas.=94
[SOURCE: Communications Daily, AUTHOR: Edie Herman]
(Not available online)
TELEPHONE PENETRATION REPORT
Last week the FCC released its annual report on telephone subscribership.=20
This report is designed to track the effects of federal and state Universal=
=20
Service Fund Lifeline and Linkup support mechanisms that defray the cost of=
=20
telephone service for low-income consumers. The FCC release highlights for=
=20
findings: 1) In March 2003, penetration among low-income households=20
nationwide was 89.2%. This contrasts with an overall nationwide=20
penetration rate of 95.5% in March 2003. 2) Since 1985, when the FCC first=
=20
established Lifeline to help low-income households afford the monthly cost=
=20
of telephone service, penetration rates among the lowest income households=
=20
(under $10,000 annual income in 1984 dollars) have grown steadily from=20
80.0% to 89.2%. 3) States that have taken full or nearly full advantage of=
=20
federal universal service support for telephone service for low-income=20
consumers saw an average growth in penetration for low-income households of=
=20
over 4% from March 1997 to March 2003. In contrast, states that did not=20
provide any lifeline support beyond the basic federal support saw an=20
average decline in telephone penetration rates for low-income households=20
between March 1997 and March 2003 of 1% (an amount that is not=20
statistically significant). 4) Penetration rates among low-income=20
households ranged from a high of 96.4% in Maine to a low of 80.0% in=20
Illinois in March 2003.
The report is made possible by the work of Alexander Belinfante; for more=20
information contact him at (202) 418-0944
[SOURCE: FCC]
http://www.fcc.gov/Bureaus/Common_Carrier/Reports/FCC-State_Link/IAD/pnt...
3.pdf
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