December 2004

Don't forget that the=20
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-253766A1.docForum=20
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-253766A1.docon=20
Media Concentration is tomorrow night at Hamline University in St. Paul,=20
Minnesota. 7:00 PM to 10:30 PM

A glimpse of our shared media future? If you have 8 mins and the bandwidth=
=20
to spare, take a look.
http://letitblog.com/epic/

DIGITAL TV
Senate To Pass DTV Switch Advisory
FCC DTV Plan on 2005 Front Burner
New Standard Expected to Push Over-Air Interactive TV=92s Success

BROADCASTING
Activists Dominate Content Complaints
Self-Censorship and Syphilis
A Media Blackout: Media Outlets Refuse Union Advertising

INTERNET
Agreement Apparently Reached in Senate on E-Rate/Universal Service
Blogging in America: A View from the Old World

QUICKLY -- Adelstein Sworn In; Tracking Online Radio Audiences;
Transforming the BBC

DIGITAL TV

SENATE TO PASS DTV SWITCH ADVISORY
Today the Senate is expected to pass the intelligence reform bill which=20
includes a resolution calling for TV stations to begin all-digital=20
transmissions and return their old analog channels to the government =93as=
=20
early as=94 Dec. 31, 2006, turning a portion of the old channels over to=20
local fire, police and other public safety departments. The =93sense of the=
=20
Congress=94 is intended to give the FCC, broadcasters and the telecom=20
industry an idea of what direction Congress wants to take the digital TV=20
(DTV) transition. The wording of the resolution is a bit of a victory for=20
broadcasters, who don't want to be saddled with the obligation, even a=20
recommended one, to give up their old channels so soon. Congress will take=
=20
up legislation on the DTV transition early next year.
[SOURCE: Broadcasting&Cable, AUTHOR: Bill McConnell]
http://www.broadcastingcable.com/article/CA486122.html?display=3DBreakin...
ws&referral=3DSUPP
(free access for Benton's Headlines subscribers)

FCC DTV PLAN ON 2005 FRONT BURNER
Federal Communications Commission Chairman Michael Powell plans early next=
=20
year to revive his effort to end the digital-TV transition by 2009. Powell=
=20
had hoped to bring the issue to a vote in November or December, but that=20
got sidetracked due to the need to write new local-phone-competition rules=
=20
within a few weeks. "Once we get [the phone rules] passed, DTV moves to the=
=20
front burner,=94 a senior FCC source said Tuesday. The first open meeting of=
=20
the FCC in 2005 is scheduled for January 13.
[SOURCE: Multichannel News, AUTHOR: Ted Hearn]
http://www.multichannel.com/article/CA486101.html?display=3DBreaking+News
(requires subscription)

NEW STANDARD EXPECTED TO PUSH OVER-AIR INTERACTIVE TV'S SUCCESS
In five years you could be interacting with your television in an entirely=
=20
new way. Watching a shopping channel, you could punch a "Buy" button=20
instead of calling a 1-800 number. You could receive customized news,=20
weather and traffic reports. So predicts Advanced TV Systems Committee=20
(ATSC) President Mark
Richer. ATSC is working on an over-the-air, interactive TV standard, the=20
Advanced Common Application Platform (ACAP), which is expected to be=20
completed and published in the next several months. Information about ACAP=
=20
is available at www.atsc.org.
[SOURCE: Communications Daily, AUTHOR: Tania Panczyk-Collins]
(Not available online)

BROADCASTING

ACTIVISTS DOMINATE CONTENT COMPLAINTS
According to a new FCC estimate obtained by Mediaweek, nearly all indecency=
=20
complaints in 2003 -- 99.8% -- were filed by the Parents Television=20
Council, an activist group. This year, the trend has continued, and perhaps=
=20
intensified. Through early October, 99.9% of indecency complaints -- aside=
=20
from those concerning the Janet Jackson =93wardrobe malfunction=94 during=
the=20
Super Bowl halftime show broadcast on CBS -- were brought by the PTC,=20
according to the FCC analysis dated Oct. 1. "It means that really a tiny=20
minority with a very focused political agenda is trying to censor American=
=20
television and radio,=94 said Jonathan Rintels, president and executive=20
director of the Center for Creative Voices in Media, an artists=92 advocacy=
=20
group.
[SOURCE: MediaWeek.com, AUTHOR: Todd Shields]
http://www.mediaweek.com/mediaweek/headlines/article_display.jsp?vnu_con...
_id=3D1000731656
PTC Demands a Recount
The Parents Television Council is calling for a congressional investigation=
=20
of FCC accounting practices; the group says that the FCC is undercounting=20
the number of complaints it receives about indecency.
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
http://www.broadcastingcable.com/article/CA486102?display=3DBreaking+New...
ferral=3DSUPP
(free access for Benton's Headlines subscribers)
See also:
http://www.tvweek.com/news.cms?newsId=3D6872

SELF-CENSORSHIP AND SYPHILIS
[Editorial] Another story about a rejected ad; this time an anti-syphilis=20
public service ad rejected by five Los Angeles broadcasters. It "seems=20
another example of the self-censorship that broadcasters are imposing as=20
the Federal Communications Commission cracks down on material it deems=20
objectionable." One broadcaster said the ad struck an "inappropriate"=20
lighthearted tone about a "serious matter." Yet multiple studies have shown=
=20
that public health messages playfully encouraging people to protect=20
themselves against disease are generally much more effective at changing=20
behavior than stern, moralistic ones. A more likely explanation for the=20
reluctance of KCBS and the other stations is that they didn't want to risk=
=20
incurring the wrath of the FCC. The editorial concludes, "FCC Chairman=20
Michael Powell's policies, initially aimed at encouraging broadcasters to=20
respect community standards of decency, now may be threatening public=20
health. Not to mention public discourse, which inevitably suffers in a=20
nanny society in which acceptable content is determined by a group=20
convinced that its "values" are handed down from on high."
[SOURCE: Los Angeles Times, AUTHOR: LA Times Editorial Staff]
http://www.latimes.com/news/printedition/opinion/la-ed-syph8dec08,1,5315...
story?coll=3Dla-news-comment
See the ad for yourself at
http://www.latimes.com/syphilishttp://www.latimes.com/syphilis
(requires registration)

A MEDIA BLACKOUT: MEDIA OUTLETS REFUSE UNION ADVERTISING
[Commentary] Major corporate media outlets often reject advertising from=20
labor unions. This means that the same outlets that will not cover labor=20
for free, in many cases will not even sell working people 60 seconds of the=
=20
public's airwaves for hard-earned money. Even people well aware of the=20
media's failings in covering labor issues have no way of knowing that the=20
media is also censoring union ads. This unfair and unbalanced practice is,=
=20
of course, not reported on by the media. Rejecting union ads or any other=20
ads (except political campaign ads) is perfectly legal, and no explanation=
=20
for the decision to reject a particular ad is required. But ad sales=20
executives are completely open about their motivations. If, they say, an ad=
=20
from a union will be viewed negatively by a corporation that buys more=20
advertising than the union does, the union ad gets rejected. Thus the=20
collective wealth of working people cannot compete in our "democratic=20
media" against the wealth of corporate owners unless the union spends as=20
much as the corporations =96 and even then ads can be rejected or required=
to=20
become corporate friendly.
[SOURCE: International Labor Communications Association, AUTHOR: David=
Swanson]
http://www.ilcaonline.org/modules.php?op=3Dmodload&name=3DNews&file=3Dar...
e&sid=3D1158

INTERNET

AGREEMENT APPARENTLY REACHED IN SENATE ON E-RATE/UNIVERSAL SERVICE
Sens Snowe (R-Maine) and Rockefeller (D-WV) have led an effort to break a=20
stalemate on the Universal Service Fund provision that=92s part of a trio of=
=20
telecom bills awaiting congressional action (HR-5419). Senate Commerce=20
Committee Chairman McCain (R-AZ) has had a hold on the bill because the=20
House wouldn't consider his bill to create a national boxing commission. It=
=20
appeared the two other measures -- on spectrum trust fund relocation and=20
E-911 funding -- may not get voted on. Sens Snowe and Rockefeller have=20
gotten 32 Senators to sign a bi-partisan letter highlighting the effect a=20
FCC-imposed accounting change could have on the E-rate program. =93The=
recent=20
suspension of funding for telecommunications services for schools and=20
libraries has caused significant hardship for these institutions across the=
=20
country, especially those in rural areas. The suspension has also=20
threatened to drive up consumers=92 telephone bills,=94 Sen Rockefeller=
said.=20
Sen Snowe said the one-year extension would give Congress time to devise a=
=20
permanent solution to the accounting problem. =93We owe it to rural phone=20
companies and their consumers, to schools
and libraries, and to low-income communities to get this fixed now,=94 she=
said.
[SOURCE: Communications Daily, AUTHOR: Terry Lane]
(Not available online)
FCC Chairman Powell and the US Telecom Association have voiced support for=
=20
the legislation (see links below).
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-255022A1.doc
http://www.usta.org/news_releases.php?urh=3Dhome.news.nr2004_1206

BLOGGING IN AMERICA: A VIEW FROM THE OLD WORLD
[Commentary] The emergence of blogs is now a part of the American media=20
landscape. Organizations with hundreds of staff -- including professionally=
=20
trained journalists and small armies of fact-checkers -- are now measured=20
as equals to a single person working out of a basement. Shouldn't we be=20
concerned about the state of American news when rumors and second-hand=20
commentary become as important as breaking global events and investigative=
=20
reports? Why aren't more American editors standing up to challenge this=20
trend? Today's blogs are so popular that nobody dares suggest that they=20
raise more problems than they solve. With bloggers, you jump directly from=
=20
breaking news to opinion. This is a major disruption and, by the way, a=20
major misunderstanding of what journalism is: when you are articulated and=
=20
well informed, it's rather easy to become an opinion giver, but it is much=
=20
more difficult to fact-check the news and avoid manipulation by the=20
government or big companies and interests. You need a staff, editors in a=20
newsroom; all that has existed in media organizations for a century.
[SOURCE: MediaChannel.org, AUTHOR: Bertrand Pecquerie, Director, World=20
Editors Forum]
http://www.mediachannel.org/views/dissector/affalert296.shtml

QUICKLY

Federal Communications Commission member Jonathan Adelstein was sworn in=20
Tuesday for a new term expiring June 30, 2008.
[SOURCE: Broadcasting&Cable, AUTHOR: ]
http://www.broadcastingcable.com/article/CA486106?display=3DBreaking+New...
ferral=3DSUPP
(free access for Benton's Headlines subscribers)
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-255070A1.doc

ADVERTISERS WEIGH NEW RATINGS FOR ONLINE-RADIO PROGRAMMING
Arbitron, the ratings service, last week teamed with comScore Networks, a=20
measurer of Web activity, to provide traditional-style broadcast ratings=20
for the online-radio industry. Why? Some advertising seers predict a=20
not-too-distant future in which old-fashioned radio as we know it ceases to=
=20
exist -- thanks to iPods, satellite radio and portable devices that will do=
=20
for listeners what video-on-demand services and digital video recorders do=
=20
for viewers.
[SOURCE: Wall Street Journal, AUTHOR: Brian Steinberg=20
brian.steinberg( at )wsj.com ]
http://online.wsj.com/article/0,,SB110246919902293952,00.html?mod=3Dtoda...
s_marketplace
(requires subscription)

PLAN TO TRANSFORM THE BBC
In a plan released Tuesday, the BBC will cut some 2,900 jobs, redirecting=20
resources into program production including journalism, drama, comedy,=20
music, learning, children's, sporting and national events.
[SOURCE: British Broadcasting Corp Press Release ]
http://www.bbc.co.uk/pressoffice/pressreleases/stories/2004/12_december/...
lans.shtml
--------------------------------------------------------------
Communications-related Headlines is a free online news summary service=20
provided by the Benton Foundation (www.benton.org). Posted Monday through=20
Friday, this service provides updates on important industry developments,=20
policy issues, and other related news events. While the summaries are=20
factually accurate, their often informal tone does not always represent the=
=20
tone of the original articles. Headlines are compiled by Kevin Taglang=20
(headlines( at )benton.org) -- we welcome your comments.
--------------------------------------------------------------

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

INTERNET
Supreme Court Takes Brand X Case
Bush Signs Net Access Tax Ban Into Law
Artists and Musicians are Enthusiastic Internet Users

OWNERSHIP
8-Year-Old Basic Law May Be Outdated Already
How Regulators Reshaped the Way Companies Run
Bush May Spur More Newspaper Consolidation

INDECENCY/CENSORSHIP
When Is a Dirty Show Indecent?
Yesterday's FCC Can Teach Us a Lesson in Free Speech

QUICKLY -- Advocacy Groups Blur Media Lines; Digital TV; Public
Radio Checkup; Broadcast News; Wi-Fi Networks;
Web use in China; Fox Will Become Main News Source For
Clear Channel; No DTV Vote Soon; Powell is NOT Funny

BRAND X COMMENTS

INTERNET

SUPREME COURT TAKES ON BRAND X CASE
The Supreme Court decided on Friday to review Brand X Internet Services vs.
Federal Communications Commission, a case from the U.S. Court of Appeals
for the Ninth Circuit that voided the FCC's March 2002 ruling that
cable-modem providers did not have to share facilities at regulated rates.
The Ninth Circuit held that because cable-modem service is partly a
telecommunications service and not solely an unregulated information
service, traditional open-access telephone policies apply to cable's data
service. Andrew Jay Schwartzman, an attorney with Media Access Project who
is representing the Center for Digital Democracy in the case, said he was
disappointed that the court agreed to hear the case. "The outcome of this
case will -- quite literally -- determine the future of the Internet as we
know it. If the Supreme Court rules against Internet open access, cable
companies will be able to block content at will for political and financial
reasons and deny the public the ability to choose among competing Internet
providers," Schwartzman said. FCC Chairman Michael Powell said, "High-speed
Internet connections are not telephones, and I'm glad the Supreme Court has
agreed to review the 9th Circuit's ruling that they are. The 9th Circuit's
decision would have grave consequences for the future and availability of
high-speed Internet connections in this country. As the Commission is
uniquely charged with the task of promoting the deployment of such advanced
services to the public, we look forward to our opportunity to present our
case before the high court."
Cable attorneys said the court has scheduled oral arguments for March 23,
but that date could change. A decision is expected to be released by June,
before the court's summer recess.
[SOURCE: Multichannel News, AUTHOR: Ted Hearn]
http://www.multichannel.com/article/CA485203.html?display=Breaking+News
(requires subscription)
http://www.mediaaccess.org/press/BrandXRelease.pdf
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-254990A1.doc
More coverage --
* TV Week
http://www.tvweek.com/news.cms?newsId=6853
** For more reaction to this decision, see Brand X Comments below **

BUSH SIGNS NET ACCESS TAX BAN INTO LAW
On Friday, President Bush signed into law a bill that renews a temporary
ban on Internet access taxes. "It's an important step forward in bridging
the economic digital divide," said Sen. George Allen, a Virginia Republican
and a bill sponsor who attended the signing ceremony at the White House
complex. "This measure will help make sure for those of lower income and
those who live in small towns and rural areas that they can get connected
more easily to broadband," he said.
[SOURCE: Reuters, AUTHOR: Andy Sullivan]
http://www.reuters.com/newsArticle.jhtml;jsessionid=JTXW2QB53HMXQCRBAELC...
See more at:
http://allen.senate.gov/?c=story&story=2004120366016.625

ARTISTS AND MUSICIANS ARE ENTHUSIASTIC INTERNET USERS
The first large-scale surveys of the Internet's impact on artists and
musicians reveal that they are embracing the Web as a tool to improve how
they make, market, and sell their creative works. They eagerly welcome new
opportunities that are provided by digital technology and the Internet. At
the same time, they believe that unauthorized online file sharing is wrong
and that current copyright laws are appropriate, though there are some
major divisions among them about what constitutes appropriate copying and
sharing of digital files. Their overall judgment is that unauthorized
online file-sharing does not pose a major threat to creative industries:
Two-thirds of artists say peer-to-peer file sharing poses a minor threat or
no threat at all to them. Across the board, among those who are both
successful and struggling, the artists and musicians we surveyed are more
likely to say that the Internet has made it possible for them to make more
money from their art than they are to say it has made it harder to protect
their work from piracy or unlawful use. Surveys by the Pew Internet &
American Life Project show there are 32 million Americans who consider
themselves artists and about 10 million earn at least some level of
compensation from their performances, songs, paintings, videos, creative
writing, and other art. The report includes special analysis of "Paid
Artists," those respondents who are musicians, writers and filmmakers and
earn some income from their art.
[SOURCE: Pew Internet & American Life Project, AUTHOR: Mary Madden]
http://www.pewinternet.org/PPF/r/142/report_display.asp
Pew File-Sharing Survey Gives a Voice to Artists
[SOURCE: New York Times, AUTHOR: Tom Zeller]
http://www.nytimes.com/2004/12/06/arts/06down.html
(requires registration)
http://www.reuters.com/newsArticle.jhtml;jsessionid=5CT0KTO1O0LYYCRBAELC...

OWNERSHIP

8-YEAR OLD BASIC LAW MAY BE OUTDATED ALREADY
There's a lot of talk of rewriting the Telecommunications Act of 1996. But
for all the talk, there remain significant impediments to a quick overhaul.
In the first place, no consensus has emerged on many of the most important
issues now confronting policy makers, notably how to regulate the new
Internet telephone services or to fix the ailing program that provides
billions of dollars for universal telephone service. Second, the
administration has not made rewriting the act a priority. Finally, House
Republican leaders and their counterparts in the Senate have different
ideas and priorities. "There is a consensus that a train wreck is
approaching, and that there need to be some changes," said Blair Levin, a
regulatory analyst at Legg Mason and former senior official at the Federal
Communications Commission. "But there is no consensus about a myriad of
details."
[SOURCE: New York Times, AUTHOR: Stephen Labaton]
http://www.nytimes.com/2004/12/06/business/businessspecial2/06telecom.ht...
(requires registration)

HOW REGULATORS RESHAPED THE WAY COMPANIES RUN
In a collection of short articles looking at Insurance, mutual funds,
software and media, the Times considers how government action changed the
rules for each industry. The media article focuses on Big Media and efforts
at the FCC to allow for Bigger Media. In the coming weeks, the largest
media conglomerates and the FCC will decide (how?) to appeal the
Philadelphia federal court decision that threw out the FCC's 2003 attempt
to loosen media ownership rules. The new rules would have allowed the same
company to own up to three television stations, eight radio stations, a
cable operator and a newspaper in the same market.
[SOURCE: New York Times, AUTHOR: Stephen Labaton]
(http://www.nytimes.com/)
(requires registration)

BUSH MAY SPUR MORE NEWSPAPER CONSOLIDATION
Four more years could mean... more media ownership consolidation? Many
media companies are hopeful that the Bush administration and a
Republican-controlled Congress will help encourage the adoption of a 2003
plan to relax rules that ban media conglomerates from owning television
stations and newspapers in the same market. The announcement from
family-controlled Pulitzer last week that it is exploring options for a
sale struck some as odd. The controversial new rules proposed last year by
the Federal Communications Commission that, among other things, would allow
cross-ownership of newspapers and TV stations have been in limbo since
June, when a U.S. appeals court blocked them from taking effect. That means
that the most strategically logical Pulitzer acquirers -- Gannett Co. and
Tribune Co., which each own a TV station in St. Louis -- will have to
gamble that the rules eventually will be loosened, if they choose to bid.
"What we have here is a certain level of risk, which on some level
diminishes the price," said Blair Levin, a former FCC official who is now
regulatory strategy analyst at Legg Mason. "People have been waiting for
some time for the cross-ownership issue to be resolved. Maybe people are
finally just saying, 'Okay, we're going to roll the dice and see what
happens.' Bush getting re-elected may have given them some comfort."
[SOURCE: Boston Globe/Associated Press]
http://www.boston.com/business/articles/2004/12/03/bush_may_spur_more_ne...

INDECENCY/CENSORSHIP

WHEN IS A DIRTY SHOW INDECENT?
To be hit with a fine, a program must first be found to shock, titillate or
pander to the audience. Second, it must be graphic in its depiction of
sexual or excretory activities, and finally, it must be found to violate
community standards. One First Amendment lawyer argues that broadcasters
might find it impossible to sort out how the FCC decides when a program has
crossed any of these three hurdles. The FCC has been going to great lengths
to justify recent decisions for or against a fine, and the Commission makes
clear that there's no hard and fast rule: context is key. But even FCC
Commissioner Michael Copps, the Commission's most ardent indecency foe,
thinks enforcement is inconsistent and warns of creating different
standards for television and radio. Industry lawyers counter that the FCC's
context reviews are wildly unpredictable and sometimes don't occur at all
-- they are likely to attack the perceived inconsistency and, they hope,
derail the indecency crackdown.
[SOURCE: Broadcasting&Cable, AUTHOR: Bill McConnell]
http://www.broadcastingcable.com/article/CA485336?display=The+Beat&refer...
(free access for Benton's Headlines subscribers)
See also:
Fox Broadcasting Challenges Indecency Fine
http://www.tvweek.com/news.cms?newsId=6851

YESTERDAY'S FCC CAN TEACH US A LESSON IN FREE SPEECH
[Commentary] It might be useful for us, and the FCC, to stop, take a breath
and look back 60-plus years, when another call for censorship swept the
land. On Oct. 30, 1938, Orson Welles' Mercury Theater of the Air performed
a radio version of H. G. Wells' "War of the Worlds," the famous story of
Martians invading the Earth. Over one million radio listeners believed the
drama in the form of a newscast was real. The public demanded the FCC do
something. But the FCC did nothing at all. Partially this was because,
having never foreseen such a crisis, the Commissioners simply didn't know
how to respond. But there were others who said that punishing artists could
have a chilling effect on art. Still others argued that, in an era of
fascist repression of speech, America needed to set an example of freedom
for all the world to see. Which brings us back to 2004. We live in a world
of censorship aplenty. Al Jazeera refuses to show the execution of Margaret
Hassan; Russia gobbles up anti-Putin media outlets; China and Iran jam
Internet sites. Shouldn't America still be the country which set the
standard of open, free media, without the threat of censorship? Shouldn't
Michael Powell and today's FCC show the wisdom of their predecessors in
1938, and back off?
[SOURCE: San Francisco Chronicle, AUTHOR: Cynthia Bass, novelist]
http://www.sfgate.com/cgi-bin/article.cgi?file=/chronicle/archive/2004/1...

QUICKLY

ADVOCACY GROUPS BLUR MEDIA LINES
Communications scholars cringe at the notion that lobbying groups are
obscuring or playing down their participation in publications and programs
that push a narrow point of view. "People judge communication by its source
so when you deny people full knowledge of that source of information they
are losing something important about evaluating the message," said Kathleen
Hall Jamison, dean of the University of Southern California's Annenberg
School for Communication. Geneva Overholser of the University of Missouri's
journalism school's Washington bureau said anything less than thorough
disclosure "is deceitful and imbalanced." Otherwise, she said, citizens
"don't have enough information to judge" publications or broadcasts.
[SOURCE: Washington Post, AUTHOR: Jeffrey H. Birnbaum]
http://www.washingtonpost.com/wp-dyn/articles/A38184-2004Dec5.html
(requires registration)

WIDE OPEN FUTURE
The percentage of homes tuning in to high-definition television (HDTV)
programs is poised to make a big leap beginning in 2006: from 30% of all
homes to about 50% of all U.S. homes by the end of 2007, according to the
Consumer Electronics Association. That's more than 50 million HDTV sets by
2007. B&C has a special report on digital television this week, including
information on consumer buying habits. Right now, only about 3 million
homes have high-definition TV, though many millions more think they do. See
the URLs below for more.
[SOURCE: Broadcasting&Cable, AUTHOR: Ken Kerschbaumer/Kevin Downey]
http://www.broadcastingcable.com/article/CA485286.html?display=Feature&r...
http://www.broadcastingcable.com/article/CA485285.html?display=Feature&r...
(free access for Benton's Headlines subscribers)

PUBLIC RADIO GET A CHECKUP FROM CPB
In a November study, "Having It All," a consulting firm found that 45% of
all public radio stations were operating in the red in 2003. But the same
report finds that public radio stations can achieve superior financial
health and, at the same time, provide excellent service to their audience.
Stations are not forced to choose between one objective or the other. They
can have both. Release of the report kicks off a broad review of the
Corporation for Public Broadcasting's funding priorities for public radio.
A series of panels will address the system's direction and future.
[SOURCE: Current, AUTHOR: Mike Janssen/Jeremy Egner]
(http://www.current.org/)
http://www.cpb.org/radio/stations/havingitall_radioreport_04.pdf

BROADCAST NEWS CAN STILL TRUMP THE WEB
[Commentary] While the Big 3 network evening newscasts continue to attract
an aggregate of 25 million viewers or more each night, they will not be
lightly cast aside. The audience for all-day, all-week cable news channels,
especially for their straight newscasts rather than their interview shows,
special reports and shouting matches, is nowhere near that. Many people may
use the Web for news -- especially the free sites of newspapers -- but how
long will they be able to get that news without paying for it?
[SOURCE: TV Week, AUTHOR: Reuven Frank, former president of NBC]
http://www.tvweek.com/article.cms?articleId=26579

WI-FI FOR EVERYONE?
[Commentary] The Pennsylvania law restricting municipal broadband networks
isn't all that bad, McCullagh writes. The guiding spirit behind the law is
that the proper role of government should be carefully circumscribed to
providing what private companies can't. Police, courts and roads arguably
fall into that category. Wireless service doesn't.
[SOURCE: C-Net|News.com, AUTHOR: Declan McCullagh]
http://news.com.com/Wi-Fi+for+everyone/2010-7351-5476718.html

PUBLIC INTEREST COALITION SUPPORTS UNLICENSED SPECTRUM USE
Last week a national coalition of consumer, education, media reform and
community wireless networks filed comments urging the FCC to immediately
provide local Internet service providers and consumer WiFi devices with
unlicensed access to empty TV channels on a market-by-market basis. The
empty TV channels occupy "beachfront" spectrum worth tens of billions of
dollars. Yesterday was the deadline for comments on the FCC's proposed
rule opening unassigned TV channels for WiFi and other unlicensed broadband
technologies. "We strongly support FCC Chairman Powell's effort to
reallocate prime spectrum from broadcast to affordable broadband, thereby
opening wasted airwaves to be shared by wireless service providers and
consumers to help close the digital divide in under-served areas," said
Michael Calabrese, vice president of the New America Foundation, a
Washington think tank that initiated the proposal. New America and Media
Access Project, a public interest law firm, drafted the comments.
[SOURCE: New America Foundation Press Release]
http://www.newamerica.net/Download_Docs/pdfs/Doc_File_2076_1.pdf

BEIJING LOVES THE WEB UNTIL THE WEB TALKS BACK
As the number of people online has quintupled over the last four years, the
government has shown itself to be committed to two competing goals:
strategically clamping deploying the Internet to economic advantage, while
clamping down -- using surveillance, filters and prison sentences -- on
undesirable content and use.
[SOURCE: New York Times, AUTHOR: Tom Zeller]
http://www.nytimes.com/2004/12/06/business/businessspecial2/06net.html
(requires registration)

TRYING TO REACH CUSTOMERS IN THE ERA OF E-MAIL SUSPICION
Will 2005 be the year of the unanswered e-mail? Given increased instances
on Internet fraud, especially a form of identity theft called "phishing,"
people may grow more and more reluctant to open unexpected email.
[SOURCE: New York Times, AUTHOR: Bob Tedeschi]
http://www.nytimes.com/2004/12/06/business/businessspecial2/06secure.html
(requires registration)

FOX WILL BECOME MAIN NEWS SOURCE FOR CLEAR CHANNEL
News Corp.'s Fox News has reached an agreement to become the primary news
provider to radio giant Clear Channel. Under the terms of the five-year
deal, which starts next year, as many as 172 of Clear Channel's news and
talk stations could eventually carry Fox's radio service, which includes
news updates of up to five minutes per hour and syndicated talk shows by
some of its cable news personalities.
[SOURCE: Wall Street Journal, AUTHOR: Joe Flint joe.flint( at )wsj.com]
http://online.wsj.com/article/0,,SB110229064974891515,00.html?mod=todays...
(requires subscription)

FCC'S POWELL TO DELAY DIGITAL-TV VOTE, AIDES SAY
You might ask how you can accelerate something by delaying a vote on it,
but that's how things (don't) work in DC. Apparently, FCC Chairman Michael
Powell is planning to push back 'til March a vote on a plan that would help
end by 2009 the nation's conversion to digital-only television
broadcasting. They vote had been targeted for the FCC's Dec 15 meeting, but
the dominant topic that day will be phone competition rules. In delaying
the vote, Chairman Powell may get enough time to gain support for the
digital TV transition plan in Congress and within the TV industry.
[SOURCE: Bloomberg, AUTHOR: Neil Roland nroland( at )bloomberg.net]
http://quote.bloomberg.com/apps/news?pid=10000006&sid=a_iypPBKCFMs&refer...

FCC Chairman Michael Powell is not funny.
http://www.broadcastingcable.com/article/CA485313?display=Breaking+News&...

BRAND X COMMENTS

Statement of Jeff Chester, executive director, Center for Digital
Democracy, on the decision of the Supreme Court to review the "Brand X"
open access case: "This case is nothing less than a battle for the soul of
the Internet--and for the public's First Amendment rights in the broadband
era. While the cable industry is intent on transforming the Internet into
an extension of its tightly controlled cable business, it is critical that
we maintain an open, nondiscriminatory platform for the exchange of ideas
and information. The Internet must not become the preserve of any one
media or telecom industry. Rather, it should reflect the highest
aspirations of our democracy: the free flow of information, unimpeded
access to all manner of content, and a platform for the broadest diversity
of viewpoints."
See also: Next Stop: Supreme Court. Review of the "Brand X" Case will
shape broadband's future.
http://www.democraticmedia.org/news/washingtonwatch/BrandXSCreview.html
[SOURCE: Center for Digital Democracy]
http://www.democraticmedia.org/news/BrandXSC.html

Supreme Court Grants Cert in the Brand X Case
The Supreme Court's decision to grant cert in the Brand X case sets the
stage to finally remove a barrier to competition and consumer choice on the
high-speed Internet. For almost a decade the Federal Communications
Commission (FCC) has ignored the Communications Act and allowed cable
operators to force consumers to pay twice to choose their Internet Service
Provider when accessing the high-speed Internet with cable modem service.
We are confident that when the Court examines the facts, it will decide to
uphold the 9th Circuit Appeals Court ruling that affirmed the critical
principle of open, non-discriminatory networks as the cornerstone of
competition in communications markets. Consumers should be allowed to enjoy
the increased choice and lower prices that come with a more competitive
broadband market, as they do in the traditional "dial up" Internet market.
We believe that the Supreme Court will uphold the 9th Circuit ruling, which
ordered the FCC to remove this barrier to a competitive market, where
consumers can select from a broad array of providers.
[SOURCE: Consumers Union Press Statement]
http://www.consumersunion.org/pub/core_telecom_and_utilities/001698.html...

Statement of Robert Sachs, President & CEO National Cable &
Telecommunications Association Regarding the U.S. Supreme Court's Decision
to Review the Brand X Case: "We are pleased by the Supreme Court's decision
to review this significant case and are optimistic that the Court will
affirm the FCC's decision that cable modem service is an interstate
information service, fostering a deregulatory environment for cable
high-speed Internet access. Establishing a deregulatory environment for
cable modem service is critical to the universal deployment in the U.S. of
broadband services, including emerging services such as Voice over Internet
Protocol service. This case presents a fundamental question of
communications law, carefully decided by the FCC and then overturned by a
circuit court that simply ignored what the agency had done, refusing to
accord the FCC the deference Supreme Court precedent requires. Classifying
cable modem service as an interstate information service, as the FCC did,
puts this innovative service on the right deregulatory path."
[SOURCE: National Cable & Telecommunications Association]
http://www.ncta.com/press/press.cfm?PRid=556&showArticles=ok
--------------------------------------------------------------
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.
--------------------------------------------------------------

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

AGENDA ITEMS
Improving Spectrum Management for the 21st Century
White House Seeks to Speed DTV Switch
Upcoming Congressional Agenda

MEDIA
CBS, NBC Refuse to Air Church's Television Advertisement
Networks' New Wave of News

BROADBAND
Fast Internet Service for The People
Carriers Throw their Weight Around Towns
Verizon Concessions Tip Balance In Favor of PA Broadband Law
High Tech Players Urge Opening TV 'White Spaces' to Broadband

QUICKLY -- Minnesota Backs Away from VoIP Regulation; Comcast Seeks
Deregulation in Dallas; EU Review of
Microsoft-ContentGuard Deal;
Digital Forensics

AGENDA ITEMS

IMPROVING SPECTRUM MANAGEMENT FOR THE 21ST CENTURY
President Bush has directed the heads of executive departments and agencies
to implement the recommendations in the of two Department of Commerce
reports titled Spectrum Policy for the 21st Century: The Presidents
Spectrum Policy Initiative. Specifically, the President is asking 1) the
Office of Management and Budget, within six months, to provide guidance for
improving capital planning and investment control procedures to better
identify spectrum requirements and the costs of investments in
spectrum-dependent programs and systems -- and for agencies to adopt these
recommendations by 12/05; 2) any agency head chosen by the Secretary of
Commerce to provide strategic spectrum plans including a) spectrum
requirements, b) plans for new technology adoption, and c) suggestions for
efficient approaches to meeting identified spectrum requirements; and 3)
the Secretary of Homeland Security to present public safety spectrum needs
and a plan to meet these needs.
[SOURCE: The White House]
http://www.whitehouse.gov/news/releases/2004/11/20041130-8.html
Reaction from NTIA:
http://www.ntia.doc.gov/ntiahome/press/2004/execmemo_12012004.html

WHITE HOUSE SEEKS TO SPEED DTV SWITCH
One of the recommendations in "Spectrum Policy for the 21st Century" (see
story above) concerns the transition to digital television. The Commerce
Department is to establish a private-sector advisory committee to help the
federal government keep the digital-TV transition on track and to resolve
other tricky telecommunications issues, such as promoting nationwide,
affordable access to high-speed Internet service. Although the FCC has said
it will be hard to complete the switch to all-digital TV before 2009, the
White House still insists that the Commerce Department's National
Telecommunications and Information Administration try to wrap it up by Dec.
31, 2006, the government's target date for reclaiming old analog channels.
[SOURCE: Broadcasting&Cable, AUTHOR: Bill McConnell]
http://www.broadcastingcable.com/article/CA484757?display=Breaking+News&...
(free access for Benton's Headlines subscribers)

UPCOMING CONGRESSIONAL AGENDA
Incoming Senate Commerce Committee staff director Lisa Sutherland told a
telecom conference audience that telecommunications reform legislation in
the next Congress may also include reforming the FCC's decision-making
process. She noted that the telecom industry always seems to be in a state
of uncertainty because FCC
rulemakings take too long and are held up in lengthy court challenges.
Other Hill staffers identified priorities for the next Congress: universal
service, intercarrier compensation, regulatory parity, antitrust
protection, and accelerating the digital television conversion.
At a Media Institute meeting, industry analysts offered their predictions
on the FCC and Congressional agenda. They said support for the FCC's plan
to accelerate the digital TV conversion (by counting cable and satellite
subscribers as digital households) has lost momentum. They predicted no
telecom reform bill will pass in the next Congress especially if they
address controversial issues like media ownership and indecency standards.
The were unanimous in declaring a la carte pricing a dead issue for next
Congress.
[SOURCE: Communications Daily, AUTHOR: Terry Lane]
(Not available online)

MEDIA

CBS, NBC REFUSES TO AIR CHURCH'S TELEVISION ADVERTISEMENT
The CBS and NBC television networks are refusing to run a 30-second
television ad from the United Church of Christ that has been deemed "too
controversial" because its ad implies acceptance of gay and lesbian couples
-- among other minority constituencies. "Because this commercial touches
on the exclusion of gay couples and other minority groups by other
individuals and organizations," reads an explanation from CBS, "and the
fact the Executive Branch has recently proposed a Constitutional Amendment
to define marriage as a union between a man and a woman, this spot is
unacceptable for broadcast on the [CBS and UPN] networks." CBS and NBC's
refusal to air the ad "recalls the censorship of the 1950s and 1960s, when
television station WLBT in Jackson, Miss., refused to show people of color
on TV," says Ron Buford, coordinator for the United Church of Christ
identity campaign. Buford, of African-American heritage, says, "In the
1960s, the issue was the mixing of the races. Today, the issue appears to
be sexual orientation. In both cases, it's about exclusion." "The
consolidation of TV network ownership into the hands of a few executives
today puts freedom of speech and freedom of religious expression in
jeopardy," says former FCC Commissioner Gloria Tristani, currently managing
director of the UCC's Office of Communication. "By refusing to air the
United Church of Christ's paid commercial, CBS and NBC are stifling
religious expression. They are denying the communities they serve a
suitable access to differing ideas and expressions." Adds Andrew
Schwartzman, president and CEO of the not-for-profit Media Access Project ,
"This is an abuse of the broadcasters' duty to inform their viewers on
issues of importance to the community. After all, these stations don't mind
carrying shocking, attention-getting programming, because they do that
every night."
[SOURCE: United Church of Christ Press Release]
http://www.ucc.org/news/u113004a.htm
See also --
* Washington Post:
http://www.washingtonpost.com/wp-dyn/articles/A26458-2004Dec1.html
* NY Times: http://www.nytimes.com/2004/12/02/national/02church.html

NETWORKS' NEW WAVE OF NEWS
With Brian Williams taking over tonight for Tom Brokaw on "NBC Nightly
News," and Dan Rather's announcement last week that he is leaving "CBS
Evening News" in March, the often-staid broadcast news divisions appear
ready to embrace change. Everything seems to be on the table. Networks
might push newscasts to later in the evening to adapt to family schedules
and commuters. Anchors such as Williams will increasingly turn up on early
morning shows and Internet chat rooms to gain more exposure, and broadcast
executives hope, viewers. And yes, they will make frequent guest
appearances on entertainment programs like "The Daily Show," which has
become a proxy newscast for many young viewers. Entertainment values --
employed fully by Fox News Channel in its successful decade-long battle
against CNN -- are becoming paramount. Orville Schell, dean of the Graduate
School of Journalism at UC Berkeley, is convinced the new strategies will
reduce the quality of news programming. He noted the networks' obsession
with ratings, which drive advertising rates.
[SOURCE: Los Angeles Times, AUTHOR:Scott Collins]
http://www.latimes.com/news/printedition/front/la-et-networks2dec02,1,29...
(requires registration)

BROADBAND

FAST INTERNET SERVICE FOR THE PEOPLE
Consumer advocates denounce the new Pennsylvania law restricting municipal
broadband networks. They say it amounts to governments now needing a
permission slip from entrenched cable and telephone monopolies to put a
vital economic and educational tool within everyone's reach. Government has
a long history of providing essential public services, these advocates
remind, pointing to national highways or electricity in rural areas. "The
Internet . . . is a true global public utility," said Jeffrey Chester,
director of the Center for Digital Democracy, an advocate for consumer
rights online. "We should be trying to provide it for free." Harold J.
Feld, associate director of the Media Access Project, a consumer-media
advocacy group, said a phone or cable company could always come in and
provide a wireless network, competing on price and service with any
municipal offering. "But who gets to decide what municipalities can do?"
Feld said. "Will it be corporations?" Companies such as Verizon, which
helped shape the Pennsylvania law, argue that telecommunications firms
would have little incentive to build networks if they have to compete with
government-subsidized service.
[SOURCE: Washington Post, AUTHOR: Jonathan Krim]
http://www.washingtonpost.com/wp-dyn/articles/A26409-2004Dec1.html
(requires registration)
See also --
* Despite lip service, telecom execs hate competition
[Commentary] A recent report shows that the United States has slipped from
11th place to 13th place among nations in terms of broadband penetration.
If policy-makers want to reverse that trend, they need to stop kowtowing to
powerful interests and start working to promote broadband competition in
all of its forms.
[SOURCE: San Jose Mercury News, AUTHOR:Miguel Helft]
http://www.mercurynews.com/mld/mercurynews/business/technology/10313755.htm
* NY Times: http://www.nytimes.com/2004/12/02/technology/02wireless.html
* Center for Digital Democracy's response to the PA law outlawing municipal
networks:
http://www.democraticmedia.org/news/Rendell.html

CARRIERS THROW THEIR WEIGHT AROUND TOWNS
As competition between cable and phone companies becomes increasingly
cutthroat, these arch-rivals are shelving their differences, teaming up to
derail community broadband projects. This alliance of odd couples is making
a multipronged attack, from lobbying state legislators to ban
government-run broadband networks, to flooding airwaves and mailboxes with
messages against these projects. As evidence of their success, the
incumbents won a huge victory in the spring when the U.S. Supreme Court
ruled that states can pass laws barring municipalities from building
broadband networks that could compete with private companies. "The issue is
(that the municipalities) control rights of way, and to regulate us at same
time they're competing with us is a recipe for trouble," said Dave
Pacholczyk, an SBC spokesman.
[SOURCE: C-Net|News.com, AUTHOR: Jim Hu]
http://news.com.com/Carriers+throw+their+weight+around+towns/2100-1034_3...

VERIZON CONCESSIONS TIP BALANCE IN FAVOR OF PA BROADBAND LAW
There's plenty of bad things in the legislation, but will anything good
come from the bill signed by Pennsylvania Governor Edward Rendell (D) that
restricts municipal broadband networks? Possibly. 1) To protect affordable
phone service for low-income households, the law requires incumbents to
automatically notify residents who apply for state public assistance that
they are eligible for an $8 discount on monthly phone bills and up to $100
toward installation charges. The bill also allows these low income
subscribers to buy services such as caller ID or call waiting. Previously,
these customers weren't allowed to have these services, and this
restriction was considered a significant impediment to Lifeline enrollment.
2) The bill requires Verizon and other incumbents to provide broadband
service to K-12 schools at 30% off the market rate or, if it's less, the
actual incremental cost of providing service to the buildings. 3) It also
established a $10 million education technology fund to help schools pay for
the equipment needed to take advantage of their broadband connections. 4)
Verizon promised to sell broadband equipment to schools at a discounted
price equal to cost plus 5%. And it agreed to sell its managed network
services to schools at a 20% discount from list. Rendell said the law's
discounts and Verizon's commitments would represent at least $350 million
in broadband savings to schools the next 10 years. 5) The law also sets up
a process by which the state Dept. of Community & Economic Development
(DCED) can designate specific rural communities to go to the head of the
deployment queue to serve local economic development projects. Under this
provision, incumbents must provide broadband service to DCED-designated
communities within 12 months of the request from that agency. 5) Verizon
promised Gov Rendell that, regardless of what the federal jurisdiction may
do with regard to unbundling, it will continue to offer unbundled services
to competitors up to 40% off list.
[SOURCE: Communications Daily, AUTHOR: Herb Kirchhoff, Susan Polyakova]
(Not available online)

HIGH TECH PLAYERS URGE OPENING TV 'WHITE SPACES' TO BROADBAND
High tech companies, anxious to open up more spectrum for Wi-Fi and other
unlicensed uses, strongly supported an FCC proposal to allow the use of
"white spaces" between TV channels, in comments on a proposed rulemaking.
In general, high tech companies view the lower-frequency spectrum as
especially valuable for unlicensed
use because of its superior propagation characteristics. As expected,
broadcasters slammed the plan. Cable operators cited a potential threat to
their operations. The FCC appears likely to offer a pilot project testing
FCC Office of Engineering & Technology arguments the white spaces can be
safely used. Sources said Wed. only a change in leadership at the
Commission would potentially kill the initiative.
[SOURCE: Communications Daily]
(Not available online)
[The Benton Foundation signed on to comments drafted by the Media Access
Project and the New America Foundation that support the FCC proposal. See
those comments at:
http://www.mediaaccess.org/programs/broadband/BcstBandsFINALforNAF.pdf]

QUICKLY

MINNESOTA BACKS DOWN ON VOIP RULES -- FOR NOW
The Minnesota Public Utilities Commission has temporarily halted the
first-ever attempt by a state to impose its telephone rules and regulations
on an Internet phone service provider -- in part because the FCC recently
claimed sole jurisdiction over VoIP. In halting its regulatory plan on
Tuesday, the Minnesota commission promised to resurrect the effort should a
judge or Congress modify the FCC's order. Minnesota utility regulators also
will jump-start the effort should a court decide U.S. District Court Judge
Michael Davis was wrong to permanently bar the state from regulating
Internet phone company Vonage last October. A decision is expected in about
90 days.
[SOURCE: C-Net|News.com, AUTHOR: Ben Charny]
http://news.com.com/Minnesota+backs+down+on+VoIP+rules--for+now/2100-735...

COMCAST SEEKING DALLAS DEREGULATION
Arguing that at least 15% of the local market subscribes to satellite TV,
Comcast is asking the FCC to free the cable giant of rate regulation in
Dallas. If Comcast is successful, Dallas would lose authority to set
basic-cable rates at a time when large cable companies are announcing 2005
rate increases that are not playing well in the national media. The Dallas
government, which oversees Comcast's basic rates, is planning to oppose the
company at the FCC, said Nick Fehrenbach, the city's manager of regulatory
affairs and utility franchising.
[SOURCE: Multichannel News, AUTHOR: Ted Hearn]
http://www.multichannel.com/article/CA484751.html?display=Breaking+News
(requires subscription)

EU REGULATORS SUSPEND REVIEW OF MICROSOFT-CONTENTGUARD DEAL
With electronics maker Thomson SA joining Microsoft and Time Warner's
investment in antipiracy-software company ContentGuard, the European Union
Commission has stopped the clock on its review of the deal waiting for new
information about Thomson's role. EU Commission regulators sent out formal
objections to the venture last month, saying it may give Microsoft too much
power over the technology made by ContentGuard, which is becoming crucial
for online sales of music and video. Regulators still could demand
concessions in exchange for approval or block the deal outright. They even
might require the deal to be resubmitted in a new form, triggering a second
investigation.
[SOURCE: Wall Street Journal, AUTHOR: William Echikson
william.echikson( at )dowjones.com ]
http://online.wsj.com/article/0,,SB110190719223287932,00.html?mod=todays...
(requires subscription)

DEPUTY GEEK, REPORTING FOR DUTY
The European Information Society Group (EURIM) is calling on the U.K.
government to recruit information technology workers as special constables,
or volunteers who work with police officers to take a byte out of crime on
the Internet. The recommendations follow findings earlier this year that
only approximately 240 people are qualified to work in digital forensics
and evidence recovery. EURIM, a British technology lobbying group, is
proposing to increase the number of skilled police officers monitoring the
cyberworld.
[SOURCE: C-Net|News.com, AUTHOR: Dan Ilett]
http://news.com.com/Deputy+geek%2C+reporting+for+duty/2100-7348_3-547308...
--------------------------------------------------------------
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.
--------------------------------------------------------------