June 2005

Benton's Communications-related Headlines for 6/07/05

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

TELEVISION
Stevens: DTV Bill This Month
Verizon, SBC Push for Reform of Video Rules
Missing the Big Picture on PBS
New Worlds To Censor
The Sky over TV-land may not be Falling
Moonves: Prepare for Plugs Aplenty

FEDERAL COMMUNICATIONS COMMISSION
Verizon Presses Bush to Name new FCC Commissioners
1st Meeting of Newly Rechartered Consumer Advisory Committee
FCC Office of Inspector General Reports to Congress

QUICKLY -- Seattle tops list of Wireless Web Communities; Scripps Captures
Shopzilla; Iraqi reality-TV

TELEVISION

STEVENS: DTV BILL THIS MONTH
Sen Ted Stevens plans to unveil his version of DTV transition legislation
by the end of June and predicts he can quickly move the bill though the
Senate, reconcile his bill with a separate version in the House and have a
final bill ready for the President's signature in October. [He's also
promised to paint my house!] Sen Stevens told the Federal Communications
Bar Association he can draft a bill with bipartisan consensus and wide
industry support because of information he and fellow Commerce Committee
Co-Chairman Daniel Inouye are gleaning from a series of closed-door
"listening sessions" they and their staffs are conducting with TV industry
executives and other affected parties. Sen Stevens predicted his bill will
be similar to draft DTV legislation floated by his counterpart at the House
Commerce Commerce Committee, Chairman Joe Barton (R-TX). His legislation
will include a subsidy for DTV convertors, but he's not sure how the
program will work yet -- or how big it will be. Sen Stevens also said he
would like Congress to approve a standard local franchise that would allow
Bell phone companies to roll out video without the need for lengthy
franchise negotiations with each municipal government. But Cheryl Leanza,
telecommunications counsel for the National League of Cities, says because
of familiarity with their communities, cities are better positioned to set
buildout terms that prevent "redlining," the serving of upper income areas
without providing adequate service to lower income neighborhoods. "Cities
have been instrumental in ensuring that competition comes to all Americans."
[SOURCE: Broadcasting&Cable, AUTHOR: ]
http://www.broadcastingcable.com/article/CA606639?display=Breaking+News&...
(free access for Benton's Headlines subscribers)
Listen to the speech yourself:
http://src.senate.gov/public/_files/radio/stevensfcba6_6.mp3
* Stevens Looking to Help Bells
http://www.multichannel.com/article/CA606782.html?display=Breaking+News&...
(free access for Benton's Headlines subscribers)

VERIZON, SBC PUSH FOR REFORM OF VIDEO RULES
On Monday, SBC and Verizon called for lower legal barriers to launching
their own video services, amid worries that their plans could be delayed by
regulators. They are spending billions of dollars to launch residential
video services over the next 12 months, which they see as essential to
competing against cable companies targeting their customers with telephone
and high-speed Internet services. Each says their plans could be threatened
by regulations requiring them to get permission for selling video services
from many of the cities they're targeting, a process that can take years.
Verizon says that of a possible 10,000 franchise agreements with cities, it
has reached six so far.
[SOURCE: Reuters, AUTHOR: Justin Hyde]
http://www.reuters.com/newsArticle.jhtml;jsessionid=BQUR00H5FNZJQCRBAEZS...

MISSING THE BIG PICTURE AT PBS
[Commentary] As the growth of cable TV ushered in the 500-channel universe,
public television had one key asset that could have made it distinctive: It
was noncommercial, meaning that programming did not have to depend on
audience ratings or please advertisers. Higher social values could drive
the content. But, instead, PBS has chosen to become increasingly
market-driven. While it still is a home for quality educational programs,
it is becoming more difficult to define how it is "noncommercial."
Programming decisions are deeply intertwined with concerns about funding
sources, audience size and demographics, and with a general desire to avoid
offending vocal constituencies. But is this really necessary? The idea of
public television is far more popular than the ratings of its specific
programs suggest. Public opinion surveys show that a vast majority of
Americans support public television and are willing to pay for it with
their tax dollars - even though PBS' audience has always been small and has
declined in prime time by more than 30 percent since the late 1980s. People
like to think that public television is valuable, even if they rarely watch
it. This gives PBS an opening to become far more valuable in our politics
and in our culture. But to do this, it needs to return to its roots -- it
must get back to being noncommercial.
[SOURCE: Newsday, AUTHOR: William Hoynes, Vassar College]
http://www.newsday.com/news/opinion/ny-ophoy054291619jun05,0,4755348.sto...

NEW WORLDS TO CENSOR
[Commentary] A troubling shift is underway in how lawmakers censor media in
this country. Sen. Ted Stevens (R-Alaska) and Rep. Joe Barton (R-Tex.),
chairmen of the Senate and House commerce committees, as well as Kevin
Martin, the new head of the Federal Communications Commission, are
proposing to broaden federal broadcast "indecency" regulations to cover
cable and satellite television. And a separate measure recently introduced
in the Senate would regulate "excessively violent" programming, not just in
broadcasting but on cable and satellite service as well. No doubt, some
parents will welcome efforts to extend indecency censorship, feeling
somewhat overwhelmed by all the new media outlets out there. As a parent of
two children, I can certainly sympathize. But technology gives parents more
ways to control media exposure every day. And just because the job of being
a good parent is difficult, we should not call in government to act as a
surrogate parent and make these decisions for all of us.
[SOURCE: Washington Post, AUTHOR: Adam Thierer, Progress and Freedom
Foundation]
http://www.washingtonpost.com/wp-dyn/content/article/2005/06/06/AR200506...
(requires registration)

THE SKY OVER TV-LAND MAY NOT BE FALLING
Viacom's CBS, according to industry insiders, was on track Friday to sell
about $2.5 billion to $2.6 billion in prime time ads, a 10 percent increase
from a year ago. Reaping the benefits of an impressive comeback, Walt
Disney-owned ABC saw total ad commitments surge more than 20 percent, to
$2.1 billion. Fox was flat year-over-over at roughly $1.6 billion, leading
some analysts to speculate that the News Corp. unit held onto more
inventory than usual in the hopes of getting higher rates closer to
air-time. Only NBC is down -- from $400 million to $600 million in ad
dollars this year.
[SOURCE: CNN/Money, AUTHOR: Krysten Crawford]
http://money.cnn.com/2005/06/03/news/fortune500/networks_upfront/index.htm

MOONVES: PREPARE FOR PLUGS APLENTY
TV viewers better brace themselves for even greater product placement in
their favorite TV shows because CBS Chairman Les Moonves is planning a big
increase. CBS will be heavily salting much of its programming with
placements. "We're making more and more of those deals: The kind of cars
they drive in CSI; the kind of orange juice they drink in Two and A Half Men."
[SOURCE: Broadcasting&Cable, AUTHOR: ]
http://www.broadcastingcable.com/article/CA606786?display=Breaking+News&...
(free access for Benton's Headlines subscribers)
Also --
Moonves Vows to Pursue Retrans Fees for CBS
Viacom co-President and co-Chief Operating Officer Leslie Moonves on Monday
repeated his commitment to pursue retransmission fees from cable operators,
saying that although it might take three to five years before he can start
charging cable to carry the CBS and UPN signals, it's a goal he intends to
achieve.
[SOURCE: TVWeek, AUTHOR: Jay Sherman]
http://www.tvweek.com/news.cms?newsId=7946
(requires free registration)
* Moonves: CBS to Seek Cash for Retrans
http://www.multichannel.com/article/CA606768.html?display=Breaking+News

FEDERAL COMMUNICATIONS COMMISSION

VERIZON PRESSES BUSH TO NAME NEW FCC COMMISSIONERS
Benevolent neglect has been great, but we need a fully-functioning FCC,
Verizon announced yesterday. The telephone company needs the FCC to bless
its plan to acquire long-distance and data company MCI. Since former FCC
Chairman Michael Powell stepped down earlier this year, the Commission is
evenly split with two Republicans and two Democrats. Additionally, FCC
Commissioner Kathleen Abernathy, also a Republican, plans to leave the
agency soon. Senate Commerce Committee Chairman Ted Stevens has recommended
his aide Christine Kurth fill one slot and several names have been floated
for the other position. Democrat FCC Commissioner Michael Copps' term
expires this month but he can serve until replaced or through late 2006. He
has received support from Sen Stevens and the top Senate Commerce Committee
Democrat Sen. Daniel Inouye to be renominated.
[SOURCE: Reuters]
http://www.reuters.com/newsArticle.jhtml;jsessionid=BQUR00H5FNZJQCRBAEZS...

FIRST MEETING OF NEWLY RECHARTED CONSUMER ADVISORY COMMITTEE
The Consumer Advisory Committee (CAC) will hold its next meeting on Friday,
June 10, from 8:30 A.M. to 4:00 P.M. at the Commission's Headquarters
Building, Room TW-C305, 445 12th Street, SW, Washington, DC 20554. The
meeting is open to the public. The agenda includes briefings regarding CAC
goals and objectives, the Committee's bylaws, the responsibilities of CAC
members, an overview of the FCC's processes and procedures, the role of the
working groups and subcommittees, and issues pending before the FCC of
interest to consumers. Members of the public may address the Committee or
may send written comments to Scott Marshall, Designated Federal Officer of
the Committee, at scott.marshall( at )fcc.gov. [Note: My beloved boss, Charles
Benton, is serving on CAC and welcomes your input. Just email me at
headlines( at )benton.org]
[SOURCE: Federal Communications Commission]
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-259166A1.doc

FCC OFFICE OF INSPECTOR GENERAL REPORTS TO CONGRESS
The FCC Office of Inspector General (OIG) reports it made "significant
progress" in designing and carrying out its Universal Service Fund (USF)
oversight program, but "more work remains to be done." In a semiannual
report to Congress, OIG said, "The primary obstacle to implementation of
effective, independent oversight has been a lack of adequate resources to
conduct audits and provide audit support to investigations. This lack of
resources has prevented us from completing the body of work necessary to
assess fraud, waste and abuse at the program level." OIG said it sought
$3.17 million for USF oversight in the FY2006 budget and began to explore
alternatives for getting contract audit support.
[SOURCE: Communications Daily]
(Not available online)
See the report at:
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-259144A1.pdf

QUICKLY

SEATTLE TOPS LIST OF WIRELESS WEB COMMUNITIES
A new Intel-sponsored study finds that Seattle had more places for its
residents to connect to the Internet via wireless, or Wi-Fi, hot spots than
any other U.S. city. Second on the list was San Francisco's metropolitan
area, followed by Austin, Texas. Fourth was, Portland, Oregon, and fifth
was, you guessed it, Glass City -- Toledo, Ohio.
[SOURCE: Reuters]
http://www.reuters.com/newsArticle.jhtml;jsessionid=H3I05CRELF02ICRBAEZS...

SCRIPPS BUYS SHOPZILLA
E. W. Scripps Co. said it plans to buy price search engine Shopzilla for
$525 million. Shopzilla collects prices on electronics, clothes, and other
consumer product from thousands of retailers who then pay referral fees.
[SOURCE: Broadcasting&Cable, AUTHOR: John M. Higgins]
http://www.broadcastingcable.com/article/CA606790?display=Breaking+News&...
(free access for Benton's Headlines subscribers)

IRAQI REALITY-TV HIT TAKES FEAR FACTOR TO ANOTHER LEVEL
A look at reality TV in Iraq: "Terrorism in the Grip of Justice." Critics
say the show violates prisoner rights by publicly humiliating suspects
before they are proven guilty.
[SOURCE: The Christian Science Monitor , AUTHOR: Neil MacDonald]
http://www.csmonitor.com/2005/0607/p01s03-woiq.html
--------------------------------------------------------------
Communications-related Headlines is a free online news summary service
provided by the Benton Foundation (www.benton.org). Posted Monday through
Friday, this service provides updates on important industry developments,
policy issues, and other related news events. While the summaries are
factually accurate, their often informal tone does not always represent the
tone of the original articles. Headlines are compiled by Kevin Taglang
(headlines( at )benton.org) -- we welcome your comments.
--------------------------------------------------------------

Benton's Communications-related Headlines for 6/06/2006

Four events of note as this late-Spring week begins: 1) Sen Ted Stevens
speaks to the Federal Communications Bar Association over chicken
sandwiches today, 2) FCC Chairman come to Chicago tomorrow to speak at
SuperComm (no word yet on leading 7th inning stretch at Wrigley), 3) the
Committee on Appropriations will consider $ for the FCC and other
agencies/departments tomorrow and 4) NCTA CEO Kyle McSlarrow will speak at
the Washington Metropolitan Cable Club on Tuesday. For these and other
upcoming media policy events (it is a busy week), see
http://www.benton.org/calendar.htm

POLICYMAKERS
Martin Names Media Bureau Leadership
Copps' Plea: Lobby FCC
Political turmoil at PBS, NPR
Media Soft on Bush, Says Conyers

TELEVISION
More Than Meets the Eye
Bill's Impact Could Send Basic Cable Rates Soaring
FCC Seen Taking on 'Tough' DTV Tuner Enforcement
Telcos Are Timed Out in Texas
Bells' Eye D.C. After Texas Defeat

INTERNET
Not Much to do in Kids' Online Domain
Pending Brand X Ruling Could Prompt Forbearance, Hill Lobbying
You've Been Scammed Again? Maybe the Problem Isn't Your Computer
Watchdog Groups Urge FEC to Exclude Bloggers from Internet Regulation
PodCasting Rapidly Emerging
Internet Overwhelmingly Viewed As Most Trustworthy Medium for
Health Information According to New Consumer Survey

TELECOM
FCC Will Monitor E-911 Efforts by VoIP Providers, ILECs
Local-Telephone Luster Fades
Sprint Prepares to Cut the Cord
Telecommunications Regulatory Environment Criticized in New Report

JOURNALISM
The Source of Whose Troubles?
Press in Iraq Gains Rights But No Refuge

VIDEO GAMES
Voiceover Actors Seek Part of Video Game Profits
Push for California Violent Video Game Bill Stalls

POLICYMAKERS

MARTIN NAMES MEDIA BUREAU LEADERSHIP
On Friday, FCC Chairman Kevin J. Martin announced his intention to appoint
Donna Gregg as the Media Bureau Chief. Chairman Martin also announced that
Roy Stewart will serve as Senior Deputy Chief of the Media Bureau and
Deborah Klein will serve as Deputy Chief of the Media Bureau. Ms. Gregg has
served as Vice President of Legal and Regulatory Affairs and General
Counsel of the Corporation for Public Broadcasting and as a partner in the
communications practice of the Washington, D.C. law firm of Wiley Rein &
Fielding. She began her legal career as a staff attorney in the FCC's
former Cable Television Bureau. She has been a Senior Lecturing Fellow in
Telecommunications Law and Policy at Duke University School of Law and a
member of the Board of Directors of the North American Broadcasters
Association. Ms. Gregg received her B.A., with high distinction, from the
University of Michigan (Go Blue!), where she was elected to Phi Beta Kappa,
and she received her J.D. from Duke University School of Law. Roy Stewart
has forty years of distinguished service at the Commission, representing an
unparalleled depth of knowledge and experience. He most recently served as
the Media Bureau's Chief of the Office of Broadcast License Policy. He
began his Commission career in the former Broadcast Bureau, serving as an
attorney in the Television Application Branch, Chief of the Transfer
Branch, and Chief of the Renewal and Transfer Division. Following the
reorganization of the Broadcast Bureau in 1982, Mr. Stewart was named Chief
of the Mass Media Bureau's Video Services Division, and he later served as
Chief of the Mass Media Bureau before the Bureau was merged with the Cable
Services Bureau into the Media Bureau. Mr. Stewart received his B.A. from
the University of Virginia and his J.D. from Cornell Law School. Deborah
Klein most recently served as Acting Chief of the Media Bureau. She
previously served as the Media Bureau's Chief of Staff, where she worked to
implement the Commission's policies relating to electronic media, including
broadcast and cable television, radio, and post- licensing satellite
issues. Prior to becoming Chief of Staff, she was Chief of the Consumer
Protection and Competition Division in the Cable Services Bureau. Before
joining the Commission in 1994, Ms. Klein served as an attorney at the
Federal Trade Commission's Bureau of Competition. Ms. Klein received her
B.A. from the University of Michigan at Ann Arbor and her J.D., magna cum
laude, from the University of Toledo College of Law (Go Rockets!).
[SOURCE: Federal Communications Commission]
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-259155A1.doc
Donna Gregg's Bio:
http://www.cpb.org/about/corp/bios/exec/gregg.html
* FCC's Martin Names Media Chiefs
http://www.broadcastingcable.com/article/CA606233?display=Breaking+News&...
(free access for Benton's Headlines subscribers)
* Martin Names Gregg Media Bureau Chief
http://www.multichannel.com/article/CA606228.html?display=Breaking+News&...
(free access for Benton's Headlines subscribers)

COPPS' PLEA: LOBBY FCC (2nd item)
Michael Copps would like to land another five-year term as an FCC
commissioner after his tenure formally expires June 30. The Democrat
requires renomination by President Bush and confirmation by the Senate if
he's going to remain at the FCC -- and given that the President hasn't
announced his intentions, you'd think Commissioner Copps would observe the
Washington tradition of keeping his head down to avoid ticking off anyone
who might be able to poison his chances. But Copps has never been known as
a shy and unassuming Commissioner, and apparently he doesn't intend to
become one now. At the National Conference on Media Reform last month,
Copps urged anti-media consolidation activists to mount a grassroots
campaign when the FCC tries to rewrite broadcast-ownership deregulation
thrown out by federal judges last summer. B&C asks if Copps was targeting
new FCC Chairman Kevin Martin is remarks about "screwing up" ownership
rules. Commissioner Copps' staff says he and the Chairman work amazingly
well together. [The question for B&C: should a Commissioner NOT try to
facilitate public participation in an important proceeding in order to keep
his/her job?]
[SOURCE: Broadcasting&Cable, AUTHOR: Mark Lasswell]
http://www.broadcastingcable.com/article/CA606265.html?display=News&refe...
(free access for Benton's Headlines subscribers)

POLITICAL TURMOIL AT PBS, NPR
For many Americans, public TV means Sesame Street, Masterpiece Theatre and
Antiques Roadshow. But for Kenneth Y. Tomlinson, chairman of the
Corporation for Public Broadcasting, it came to mean liberal bias in its
news and public affairs programming. Now Tomlinson's makeover attempts have
made their own news: Angry chiefs at PBS and NPR; an investigation of
whether his actions amounted to illegal political interference; and
questions about whether he may have overreached. But conservative media
critic L. Brent Bozell said the corporation's "serious" plans to achieve a
better balance on views will allow PBS to "have more success, getting more
and more federal funding." Patricia Aufderheide, who teaches at American
University's Center for Social Media, says, "The issue should be providing
the information that viewers and listeners want and need, not questions of
balance. It will be interesting to see how PBS handles this challenge and
how the stations handle this intimidation."
[SOURCE: Philadelphia Inquirer, AUTHOR: Steve Goldstein]
http://www.philly.com/mld/inquirer/news/front/11816016.htm

MEDIA SOFT ON BUSH, SAYS CONYERS
Rep. John Conyers, the ranking Democrat on the House Judiciary Committee,
says big media, especially cable news channels, are giving the Bush
Administration a free pass by focusing on celebrity news and other "trivial
matter" rather than examining White House policies. Rep Conyers based his
assertion on a new survey of cable news treatment of important or
high-profile stories by the Congressional Research Service, which gathers
data at lawmakers' request to help them write bills or prepare for
hearings. Conyers used the CRS sampling to charge that cable news outlets
gave big play to some inconsequential stories while largely ignoring a lot
of news casting Bush Administration policies in a negative light.
[SOURCE: Broadcasting&Cable, AUTHOR: Bill McConnell]
http://www.broadcastingcable.com/article/CA606095.html?display=Breaking+...
(free access for Benton's Headlines subscribers)
CRS Memo on Cable News Coverage of Various News Events
http://www.house.gov/judiciary_democrats/mediabias/crsmemo52305.pdf
* Congressional study shows large disparity in coverage of key stories
http://mediamatters.org/items/200505250003
In a related story --
* When the 'Daily Show' Becomes Your News
[Commentary] Almost 200 years ago, James Madison warned that "knowledge
will forever govern ignorance; and a people who mean to be their own
Governors, must arm themselves with the power which knowledge gives." The
purpose of journalism is to help people make sense of change. But even
though news has never been so valuable, so accessible and so inexpensive,
study after study shows Americans under the age of 40 have never valued it
less.
[SOURCE: MediaChannel.org, AUTHOR: John McManus, Grade the News]
http://www.mediachannel.org/views/dissector/affalert389.shtml

TELEVISION

MORE THAN MEETS THE EYE
Advocates for the deaf are hoping to pressure broadcasters into providing
more-frequent and more-accurate captioning, not just for emergencies but
for entertainment programming as well. Because of complaints by deaf
viewers, the FCC since February has fined six stations for failing to
provide required captioning during wildfires and tornado alerts in the past
two years. But it's not just the need to protect lives that is motivating
the group. Captioning of entertainment is also an important item on their
agenda, they say, because the ability to fully enjoy TV -- one of America's
most pervasive culture forces -- is critical to ensuring deaf people take
part in the country's social life. However, captioning of entertainment
shows is often filled with typos, they say. Deaf viewers recently peppered
TV chat rooms with complaints about Fox's May 10 episode of American Idol,
in which closed captions provided wrong phone numbers for casting votes.
Another frequent problem: Captioners make non sequiturs in dialogue by
mistakenly typing a word that sounds like the one intended for viewers.
[SOURCE: Broadcasting&Cable, AUTHOR: Bill McConnell]
http://www.broadcastingcable.com/article/CA606215.html?display=News&refe...
(free access for Benton's Headlines subscribers)

BILL'S IMPACT COULD SEND BASIC CABLE RATES SOARING
As proposed by House Energy and Commerce Committee Chairman Rep. Joe Barton
(R-Texas), a bill regarding the digital TV transition would require cable
operators, after the transition, to place analog and digital local-TV
signals on the basic tier, which consumers must purchase before signing up
for any cable programming service. As long as cable operators continue to
need to please both analog- and digital-equipped customers, Rep Barton's
basic-tier mandate could send basic rates soaring, Hearn writes. Rep
Barton's approach would appear to mean that all-analog cable subscribers
would need to buy digital signals they can't view, and all-digital
subscribers would need to buy analog signals they don't want.
[SOURCE: Multichannel News, AUTHOR: Ted Hearn]
http://www.multichannel.com/article/CA606132.html?display=Policy&referra...
(free access for Benton's Headlines subscribers)

FCC SEEN TAKING ON 'TOUGH' DTV TUNER ENFORCEMENT
The FCC will likely start strict enforcement of its DTV tuner requirement
after dismissing the consumer electronics (CE) industry's petition to
eliminate the July 1, 2005, deadline for DTV tuners in 50% of new 25-36"
sets, several industry sources told CommDaily. But it's unclear how the FCC
will force manufacturers to meet the deadline. "Conceivably they can use
their field agents that are all over the country. This is going to be tough
enforcement," a broadcaster said. The same broadcaster claims the CE
industry is trying to dump all analog sets into the market for the upcoming
holiday and Super Bowl season, when many sets are sold. "That's why they
have been pushing for a later deadline," the broadcaster said. CE has
denied such broadcast industry claims, saying leaving the schedule
unchanged on 25-36" sets would put those with built-in ATSC tuners at a
disadvantage to those that don't. Accepting the CE industry petition would
speed the DTV transition, not impede it, CE has said. CE wants to advance
by 4 months, to March 1, 2006, a deadline by which all such sets must have
ATSC tuning.
[SOURCE: Communications Daily, AUTHOR: Tania Panczyk-Collins, Paul Gluckman]
(Not available online)

TELECOS ARE TIMED OUT IN TEXAS
In a state-level development that has been closely watched throughout the
cable and financial industries, Verizon Communications and SBC
Communications failed to convince Texas legislators to let them forego
local franchises for their cable services. The telephone companies
expressed dismay at the Texas Legislature's failure to approve cable
franchise-reform policy this session, but both companies said that will not
stop their video plans. The legislative battleground now shifts elsewhere.
Verizon has proposed a bill in California that would relieve the telco of
the state's level-playing-field rules. That would guarantee Verizon could
launch its video product without a mandate that it do so outside its
telephone footprint. (Story includes short table on activities in other
states.)
[SOURCE: Multichannel News, AUTHOR: Linda Haugsted]
http://www.multichannel.com/article/CA606241.html&referral=SUPP
(free access for Benton's Headlines subscribers)

BELLS' EYE DC AFTER TEXAS DEFEAT
Given their failure with the Texas state legislature, phone companies are
now switching the focus to Plan B -- asking Congress and the FCC to set a
national policy for granting permits to companies that will bring broadband
and pay-TV competition to cable. The Bell's aim is to establish nationwide
standards for franchise fees and service obligations that would apply to
every market. The Bells say the policy would let them roll out competition
quicker -- advancing the broadband rollout is a government priority -- by
eliminating lengthy negotiations with local authorities. But the cable
industry isn't going to give the phone companies an easy time winning a
quick fix. The National Cable & Telecommunications Association says any
changes to Bells' franchising rights should be included as part of a
broader review of regulations for all video service providers.
[SOURCE: Broadcasting&Cable, AUTHOR: Bill McConnell]
http://www.broadcastingcable.com/article/CA606031?display=Breaking+News&...
(free access for Benton's Headlines subscribers)

INTERNET

NOT MUCH TO DO IN KIDS' ONLINE DOMAIN
Two years after the government created the ".kids.us" Internet domain, it
is a lot like Oakland, CA -- there's not much "there" there for kids. "It's
disappointing, I wish it was fully deployed," said Illinois Republican Rep.
John Shimkus, who sponsored the bill that set up the domain in 2002. But
while Congress and administrator NeuStar Inc. set plenty of restrictions to
keep online predators and inappropriate content out of the domain, they
didn't provide many incentives to bring Web sites in, Internet experts say.
Web sites with a .kids.us address can't contain pornography, violence, or
references to drugs and alcohol. Message boards, chat services and other
interactive features are also prohibited from setting up shop unless the
operators can promise that kids won't be exposed to inappropriate material.
All material must pass a content review before it is posted, and .kids.us
sites can't link to sites outside the domain. The online real estate
doesn't come cheap. Users must pay an annual fee of roughly $150 to
register the name, and the content review costs an additional $250 per
year. Those looking for a .com name, by contrast, can pay as little as $7
per year.
[SOURCE: Reuters, AUTHOR: Andy Sullivan]
http://www.reuters.com/newsArticle.jhtml;jsessionid=CW1I2ULTBXENCCRBAE0C...

PENDING BRAND X RULING COULD PROMPT FORBEARANCE, HILL LOBBYING
A ruling on the Brand X could come from the Supreme Court as early as today
(it is not likely, but possible). Oral arguments in March left many with
the impression the Justices are not likely send the case back to the 9th
Circuit. The other possible results -- a decision upholding the lower
court's ruling that the FCC was wrong to classify cable modem as an
information service, or a ruling applying the Chevron standard upholding
the information service classification -- will trigger both phone and cable
to take action. Cable is slightly better positioned in the case since it's
already largely unregulated, and a decision in its favor would leave the
status quo, whereas Internet Service Providers wouldn't gain the entry they
are seeking to cable's networks. As one cable industry source put it, if
cable wins, nothing changes and the industry retains its largely
unregulated status. Many bookies set their odds that cable will win, but if
it loses, it will likely seek forbearance at the FCC with cable urging the
Commission to reactivate its rulemaking dealing with regulatory
classification that was put on hold once the case went to court.
[SOURCE: Communications Daily, AUTHOR: Anne Veigle, Jonathan Make]
(Not available online)

YOU'VE BEEN SCAMMED AGAIN? MAYBE THE PROBLEM ISN'T YOUR COMPUTER
Despite more than 10 years of exposure to the nature of Internet
communications - cheap, quick, anonymous, unverifiable - hoaxes, viruses
and outright fraud continue to spread. And while some of this can be
attributed to the endless stream of newcomers to the online free-for-all,
it isn't just newbies who forward chain e-mail messages, get duped by
implausible offers or enter their account numbers into fake online bank forms.
[SOURCE: New York Times, AUTHOR: Tom Zeller, Jr.]
http://www.nytimes.com/2005/06/06/technology/06link.html?pagewanted=all
(requires registration)

WATCHDOG GROUPS URGE FCC TO EXCLUDE BLOGGERS FROM INTERNET REGULATION
The Campaign Legal Center, along with other campaign finance watchdog
groups, last week filed comments with the Federal Election Commission
urging the agency to adopt new rules that would largely exempt individuals,
including bloggers, from regulation of their online political activities
when they operate on their own Web sites. The groups supported a regulation
proposed by the FEC that would apply campaign finance rules to paid ads
placed on another person's Web site.
[SOURCE: Campaign Legal Center]
http://www.campaignlegalcenter.org/press-1688.html
* CDT Urges Federal Election Commission to Protect Individuals' Political
Speech on the Internet
http://www.cdt.org/
http://fec.cdt.org/

PODCASTING RAPIDLY EMERGING AS RADIO BUSINESS EXTENSION
Podcasting, the new medium burst from the confluence of iPods and audio
downloads, is advancing at incredible speed as more marketers and media
owners incorporate it as an extension of the radio business.
[SOURCE: AdAge, AUTHOR: Abbey Klaassen]
http://adage.com/news.cms?newsId=45206
* Papers Turn to Podcasting, the Newest of Media
http://www.npr.org/templates/story/story.php?storyId=4673646
* Infinity's All-News Stations To Offer Daily Podcasts Beginning 7/05
http://www.radioink.com/HeadlineEntry.asp?hid=129034&pt=todaysnews

INTERNET AND HEALTH INFORMATION
A new study of consumer attitudes toward healthcare information finds that
the Internet is seen as the most trusted media source for consumers,
decisively outstripping offline media when consumers want credible health
information.
[SOURCE: PRNewswire]
http://media.prnewswire.com/en/jsp/main.jsp?resourceid=2961879

TELECOM

FCC WILL MONITOR E-911 EFFORTS BY VOIP PROVIDERS, ILECS
The FCC released its E-911 order Fri., giving more details about its
decision to require VoIP providers to give customers full emergency calling
capabilities within 120 days. The Commission told VoIP providers and
traditional telephone companies it will "closely monitor" industry efforts
to bring full E-911 capability to VoIP customers. It also called for
comments on ways to bring E-911 capability to portable VoIP customers.
Telephone companies are a key part of this process because access to their
selective routers and trucks are needed.
[SOURCE: Communications Daily, AUTHOR: Edie Herman]
(Not available online)
FCC Order:
http://hraunfoss.fcc.gov/edocs_public/attachmatch/FCC-05-116A1.doc
FCC Press Release:
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-258818A1.doc

LOCAL-TELEPHONE LUSTER FADES
After intense lobbying, large local-telephone companies finally got what
they wanted last year: new rules dictating that they no longer had to
provide rivals with access to their networks at a discount. Investors were
euphoric, and Bell shares rose. The party was short-lived, however, and
much of last year's gains have evaporated. Verizon Communications Inc.
shares have declined 13% since the beginning of the year, SBC
Communications stock is down roughly 9% and BellSouth shares have fallen
about 3%. What happened? Investors fear that local-phone companies face a
new threat from cable providers, which are aggressively entering the phone
business. They also are concerned that phone companies' multibillion-dollar
plans to enter the video business may flop. And they fret that a recent
wave of consolidation could hurt earnings for years.
[SOURCE: Wall Street Journal, AUTHOR: Dionne Searcey dionne.searcey( at )wsj.com]
http://online.wsj.com/article/0,,SB111801964577051420,00.html?mod=todays...
(requires subscription)

SPRINT PREPARES TO CUT THE CORD
From its merger with Nextel Communications, expected to close later this
summer, Sprint-Nextel are to form the largest independent wireless carrier
that has no corporate ties to a traditional phone provider. That puts
Sprint squarely in a different camp from its bigger competitors, Verizon
Wireless and Cingular Wireless. Those companies belong to empires ruled by
Verizon Communications and SBC Communications, already the two biggest
phone companies in the country. Verizon recently acquired MCI and SBC
acquired AT&T. The new strategy, as outlined by chief executive Gary D.
Forsee, means Sprint, along with cable companies, would market a megabundle
of entertainment and communications services. This would include
Internet-based phone service, high-speed Internet connections, and
television, music and entertainment viewable on a cellular phone. In that
world, consumers would be able to communicate through the air, and through
cable lines in their homes, without subscribing to services from the old
phone company.
[SOURCE: Washington Post, AUTHOR: Yuki Noguchi]
http://www.washingtonpost.com/wp-dyn/content/article/2005/06/05/AR200506...
(requires registration)

TELECOMMUNICATIONS REGULATORY ENVIRONMENT CRITICIZED IN NEW REPORT
CompTel/ALTS, an industry association representing competitive
communications providers, released a report last week that shows the United
States is lagging behind European countries when it comes to implementing
policies necessary for sustainable competition in the communications
sector. The report explains the precipitous drop in the United States'
international standing in broadband penetration.
[SOURCE: CompTel/ALTS Press Release]
http://www.comptelascent.org/news/recent-news/060205.html
* Text of report:
http://www.comptelascent.org/public-policy/federal-regulatory/documents/...

JOURNALISM

THE SOURCE OF WHOSE TROUBLES?
[Commentary] The use and abuse of unnamed sources is rampant, especially in
Washington, and the media all too often protect those with partisan
agendas. It's a long road from Felt telling Woodward to "follow the money"
to a Bush adviser telling the New York Times that John Kerry "looks
French." But such potshots have become routine in daily reporting. The
public, understandably, has become increasingly suspicious of blind quotes,
and sometimes unnamed sources are simply wrong. Perhaps a better lesson for
the press is the way that Woodward and Bernstein pored over phone lists and
knocked on doors late at night, the kind of shoe leather reporting that
seems less fashionable in an age of cable, blogs, Podcasts and the like.
There is still a burning need for original reporting amid the cacophony of
analysis, commentary and celebrity news.
[SOURCE: Washington Post, AUTHOR: Howard Kurtz]
http://www.washingtonpost.com/wp-dyn/content/article/2005/06/05/AR200506...
(requires registration)

PRESS IN IRAQ GAINS RIGHTS BUT NO REFUGE
Iraq is adjusting uneasily to its newfound press freedoms, which proponents
consider as important to cultivating democracy here as free and fair
elections. At least 85 journalists and other employees of news
organizations -- the vast majority of them Iraqis -- have been killed here
since March 2003, according to the International Federation of Journalists,
which opened an office in Baghdad in April to distribute safety information.
[SOURCE: Washington Post, AUTHOR: Jonathan Finer]
http://www.washingtonpost.com/wp-dyn/content/article/2005/06/05/AR200506...
(requires registration)

VIDEO GAMES

VOICEOVER ACTORS SEEK PART OF VIDEO GAME PROFITS
On Tuesday, members of the Screen Actors Guild will announce whether they
will go on strike against video game companies, after months of on-and-off
discussions. (The talks also included the American Federal of Television
and Radio Artists.) The problem is that game makers will not give voiceover
actors extra fees if a game sells more than 400,000 units, a deal-breaker
for the Guild. But whether the actors decide to walk out or not, they have
already opened a Pandora's box by raising the question: Who deserves to be
compensated most for the success of a video game?
[SOURCE: New York Times, AUTHOR: Laura Holson]
http://www.nytimes.com/2005/06/06/technology/06voice.html?pagewanted=all
(requires registration)

PUSH FOR CALIFORNIA VIOLENT VIDEO GAME BILL STALLS
A bill before the California Assembly to ban the sale of violent video
games has been shelved because of a lack of support. Gov. Arnold
Schwarzenegger, whose Hollywood film career includes violent movies, has
not taken a position on the bill, which allows for $1,000 fines for
violators and requires violent video games to be labeled. The video game
industry bitterly contested the bill, and it expects it will have to do so
again. Video game developers and console makers say laws restricting game
sales are unnecessary because their $10 billion industry does a good job
stopping minors from buying "Mature"-rated games.
[SOURCE: Reuters]
http://www.reuters.com/newsArticle.jhtml;jsessionid=Z5UZFDBYJUFNECRBAELC...
* Misstep on video violence
http://www.usatoday.com/printedition/news/20050606/edit06.art.htm
* Parents need our help
http://www.usatoday.com/printedition/news/20050606/oppose06.art.htm
* Industry's ratings guide
http://www.usatoday.com/printedition/news/20050606/videobox.art.htm
--------------------------------------------------------------
Communications-related Headlines is a free online news summary service
provided by the Benton Foundation (www.benton.org). Posted Monday through
Friday, this service provides updates on important industry developments,
policy issues, and other related news events. While the summaries are
factually accurate, their often informal tone does not always represent the
tone of the original articles. Headlines are compiled by Kevin Taglang
(headlines( at )benton.org) -- we welcome your comments.
--------------------------------------------------------------

Benton's Communications-related Headlines for 6/02/05

The FCC will post the agenda for next week's open meeting today. For
upcoming media policy events, see http://www.benton.org/calendar.htm

MEDIA POLICY
Big Media Want FCC Regs Case Heard
DTV Bill More Likely than Telecom Rewrite, Hill Panelists Say
Fight Over 'Balance' Hurting Public TV on Hill, Says Lawson
FCC To Review Cable Act Regs

TELECOM
Cutting the Phone Cord Isn't as Popular as Once Predicted
States to drivers: Hang up, Look Out

INTERNET
Study: These Factors Retard Digital Teaching
Beyond Kiwanis: Internet Builds New Communities
Companies Subvert Search Results to Squelch Criticism
Net Firm Focuses on Blurring the Line
Absent Voices, Missed Opportunity

MEDIA POLICY

BIG MEDIA WANT FCC REGS CASE HEARD
A group of large media conglomerates wants the Supreme Court to take up the
issue of how many media entities a company can own in any individual
market. Six cases that present the issue have been brought by media giants,
including the Tribune Co., NBC Universal, Viacom, Media General, the
Sinclair Broadcast Group, and the Gannett Co., as well as the National
Association of Broadcasters, and are set for review at the Court's private
conference today. A coalition of public interest organizations -- including
Fairness and Accuracy in Reporting, the Center for Digital Democracy, the
Media Alliance, and the Consumer Federation of America -- urges the Court
not to get involved in the present cases, arguing that a lower court
decision to remand the proposed rules instead of vacating them makes
Supreme Court review of this decision premature. "Because many rules
challenged by Petitioners are not expected to be retained on remand, review
of those rules would likely be unnecessary," says the brief from Andrew
Schwartzman of the Media Access Project, the lead counsel for the
respondents. "Further, all of the rules at issue in this case may be
modified or repealed by the FCC during the next Congressionally-mandated
review of media ownership rules, which the FCC will conduct in 2006." The
Court, however, may choose not to hear these cases for a different reason:
The government decided to sit out this fight.
[SOURCE: Legal Times, AUTHOR: Bethany Broida]
http://www.law.com/jsp/article.jsp?id=1117530311367

DTV BILL MORE LIKELY THAN TELECOM REWRITE, HILL PANELISTS SAY
Congress is likely to pass a digital television (DTV) transition bill this
year, but the prospect of a full telecom rewrite is more remote, according
to Congressional panelists speaking Wednesday at the Broadband Policy
Summit. The DTV bill introduced by House Commerce Committee Chairman Joe
Barton (R-TX) will be attached to the budget reconciliation bill scheduled
for completion mid-Sept. Using the budget bill could aid passage but
possibly limit the DTV provisions, panelists said. Meanwhile, Consumer
Electronics Association plans to release a study this week on what would
happen post-DTV transition to the 87% of viewers who get cable or satellite
and the 13% whose analog service will be cut off, said CEA President Gary
Shapiro. The National Association of Broadcasters claimed CEA is off the
mark with its 13% figure for homes that rely exclusively on broadcast TV.
Citing General Accountability Office figures, the NAB said the number is
19% or roughly 21 million homes totally reliant on broadcast signals.
"Whose numbers do you believe? The highly respected, non-partisan GAO, or a
shill for offshore TV manufacturers?" asked a NAB spokesman.
[SOURCE: Communications Daily, AUTHOR: Anne Veigle, Tania Panczyk-Collins]
(Not available online)
* Hill Aides Differ On Overhaul Of 1996 Bill
http://www.njtelecomupdate.com/lenya/telco/live/tb-BQWG1117658795944.html

FIGHT OVER 'BALANCE' HURTING PUBLIC TV ON HILL, SAYS LAWSON
Public broadcasters are bracing for a hard fight on the Hill to retain
funding for the Corporation for Public Broadcasting and other entities,
said John Lawson, President of the Association of Public TV Stations
(APTS). The House situation is very challenging, he said. With the budget
approved there virtually mirroring President Bush's budget, it really "ties
the hands" of the Labor-HHS Subcommittee that funds CPB. The President's
budget proposed to kill advance funding for CPB. In the Senate, public
broadcasters continue to "maintain strong bipartisan support," Lawson said,
but the President wants to eliminate or slash funding for 150 domestic
programs. "So our challenge in the Senate is maintaining funding for public
broadcasting as a priority for both Republican and Democrats."
[SOURCE: Communications Daily, AUTHOR: Dinesh Kumar]
(Not available online)

FCC TO REVIEW CABLE ACT REGS
Over the next 12 months, the FCC will look at a host of regulations with an
eye toward keeping, changing or jettisoning rules it adopted between 1993
and 1995, depending on their affect on small businesses. It has asked for
help in deciding, opening a public comment period that closes Sept. 5. With
the rules flowing from the 1992 Cable Act falling in that window, on the
table are the gamut of cable regs, from ownership limits, mandatory
broadcast station carriage on cable systems (must-carry), and cable rate
regulation, to nondiscriminatory program access, as well as some
broadcast-related regs -- Emergency Alert System technical standards,
competitive bidding procedures and some ex parte communications among
them.There are also a host of telephone regulations, from slamming to
telemarketing to rates of return.
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
http://www.broadcastingcable.com/article/CA605400?display=Breaking+News&...
(free access for Benton's Headlines subscribers)
See the FCC's info on the proceeding at:
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DA-05-1524A1.doc

TELECOM

CUTTING THE PHONE CORD ISN'T AS POPULAR AS ONCE PREDICTED
While the number of wireless-only households is increasing -- close to 6%
of all U.S. homes at the end of last year, according to Forrester Research
-- the trend isn't accelerating as quickly as many experts predicted. And
some consumers are reconsidering their decision to go wireless and are
reconnecting to a landline. Consumers cite a variety of reasons for needing
a fixed line: poor cellular coverage, the sense of security a home line
provides and the fact that many people still rely on landlines for Internet
service. Local landline service is also cheap enough -- $10 to $20 a month
for a stripped-down version in many cases -- that consumers don't feel
compelled to cut it even if they don't use it. (A typical landline customer
pays about $50 a month for unlimited local and long-distance calling, on
top of $10 or so in taxes.) Some people are also reluctant to cut the cord
because there are no directories for cellular numbers and they want
business contacts or long-lost friends to be able to find them.
[SOURCE: Wall Street Journal, AUTHOR: Christopher Rhoads
christopher.rhoads( at )wsj.com]
http://online.wsj.com/article/0,,SB111766944518948757,00.html?mod=todays...
(requires subscription)

STATES TO DRIVERS: HANG UP, LOOK OUT
State lawmakers across the USA are cracking down on distracted driving as
research increasingly documents the perils of inattentiveness behind the
wheel. This year, 37 states have debated new laws restricting drivers' use
of cellphones, according to the National Conference of State Legislatures.
The rush comes as research at the University of Minnesota and the
University of Utah concludes that drivers talking on cellphones or fiddling
with the car radio sometimes perform as poorly as drunken drivers.
[SOURCE: USAToday, AUTHOR: Larry Copeland]
http://www.usatoday.com/printedition/news/20050602/1a_lede02.art.htm
* Distracted-driver debate intensifies
http://www.usatoday.com/printedition/news/20050602/a_distractedside02.ar...

INTERNET

STUDY: THESE FACTORS RETARD DIGITAL TEACHING
What's holding back the digital curriculum? A lot of things: too few
classroom computers, poorly conceived professional development, and a lack
of time to research and plan--to name three big factors, according to a new
report from the nonprofit Education Development Center (EDC). The study,
"Effective Access: Teachers' Use of Digital Resources in STEM Teaching,"
examines how high school teachers use digital libraries and other
electronic resources to support "science, technology, engineering, and
mathematics" (STEM) exploration and instruction.
[SOURCE: eSchool News, AUTHOR: Robert Brumfield]
http://www.eschoolnews.com/news/showStoryts.cfm?ArticleID=5706

BEYOND KIWANIS: INTERNET BUILDS NEW COMMUNITIES
Five years after sociologist Robert Putnam documented the decline of
community involvement in his book Bowling Alone, a new spirit of civic
engagement is flourishing, largely because of 21st-century technology.
Cellphones, e-mails, instant text messaging and BlackBerries are helping
mobile, busy Americans link up with neighbors on their commutes to work, in
the middle of the night and on business trips. Technology, coupled with the
rising number of families who have school-age children and retirees who
have leisure time, is raising hopes that more Americans are again investing
"social capital."
[SOURCE: USAToday, AUTHOR: Haya El Nasser]
http://www.usatoday.com/printedition/news/20050602/1a_cover02.art.htm

COMPANIES SUBVERT SEARCH RESULTS TO SQUELCH CRITICISM
Although Google and other search engines will not spell out exactly how
their top secret algorithms work, some companies have found ways to
influence search results: search engine optimization (SEO) techniques that
go against accepted marketing techniques and into the muddy world of Web
page spam, also known as link farms and Google bombing.
[SOURCE: Online Journalism Review, AUTHOR: Mark Glaser]
http://www.ojr.org/ojr/stories/050601glaser/

NET FIRM FOCUSES ON BLURRING THE LINE
At entertainment site Heavy.com, what seems to be program content may well
be advertising. "Our goal is to be kind of an interface, where we have two
groups of customers: consumers and marketers," said Simon Assaad, the
34-year-old Melbourne, Australia, native who launched Heavy in 1998 with
partner David Carson
[SOURCE: Los Angeles Times, AUTHOR: Jon Healey]
http://www.latimes.com/business/printedition/la-fi-heavy2jun02,1,3719835...
(requires registration)

ABSENT VOICES, MISSED OPPORTUNITIES: THE MEDIA'S SILENCE ON ICT POLICY
ISSUES IN 6 AFRICAN COUNTRIES
The report evaluates the nature of ICT policy coverage in
policy-influential media in Kenya, Mozambique, the Democratic Republic of
the Congo, Nigeria, Ethiopia and Senegal.
http://www.catia.ws/Documents/Indexpage/ICT%20coverage%20report%20final.doc
Also at http://rights.apc.org/documents/absentvoices.pdf
--------------------------------------------------------------
Communications-related Headlines is a free online news summary service
provided by the Benton Foundation (www.benton.org). Posted Monday through
Friday, this service provides updates on important industry developments,
policy issues, and other related news events. While the summaries are
factually accurate, their often informal tone does not always represent the
tone of the original articles. Headlines are compiled by Kevin Taglang
(headlines( at )benton.org) -- we welcome your comments.
--------------------------------------------------------------

Benton's Communications-related Headlines for 6/1/05

DIGITAL TELEVISION
Broadcast to Broadband -- Speeding the DTV Transition: Facts & Policy Options
Digital Broadcast Television Transition: Several Challenges Could Arise in
Administering a Subsidy Program for DTV Equipment
Consumers to Congress: Don't let our TV's go Blank
Testimony of Mr. James Yager CEO of Barrington Broadcasting On behalf of NAB
Testimony of Kyle McSlarrow, President and CEO, National Cable &
Telecommunications Association
Should DTV Must-Carry Be Expanded, Sunset or Preserved As-Is?
MPAA Unlikely to Push for Broadcast Flag in DTV Bill

TELEVISION
Texas Bill's Failure Good for Cable
Frog Net Cites FCC In Bagging Tadpole Block

QUICKLY -- Unions Struggle as Communications Industry Shifts; Newsroom
Diversity; FEC & political blogs; FCC Considers Elimination of Rules; Kids'
privacy rule under review; Maryland Adopts Computer-Recycling Fee

DIGITAL TELEVISION

BROADCAST TO BROADBAND -- SPEEDING THE DTV TRANSITION: FACTS AND POLICY OPTIONS
The House is poised to act on legislation to expedite America's DTV
transition and set a "hard" deadline for the end of analog broadcasting.
This Policy Brief offers solutions to the challenging issues facing
Congress as they craft this legislation and reallocate the TV Band spectrum
for critical public safety and wireless broadband uses.
[SOURCE: New America Foundation]
http://www.newamerica.net/Download_Docs/pdfs/Doc_File_2389_1.pdf
For additional background on DTV transition and spectrum policy reform,
visit www.spectrumpolicy.org

DIGITAL BROADCAST TELEVISION TRANSITION
Testimony before the Subcommittee on Telecommunications and the Internet,
House Committee on Energy and Commerce on May 26. Key point: "several
administrative challenges might arise in implementing a subsidy for DTV
equipment."
[SOURCE: Government Accountability Office, AUTHOR: Mark L. Goldstein]
http://www.gao.gov/cgi-bin/getrpt?GAO-05-623T
Highlights - http://www.gao.gov/highlights/d05623thigh.pdf

CONSUMERS TO CONGRESS: DON'T LET OUR TV's GO BLANK
Consumer groups last week called on Congress to ensure Americans are not
footing the bill for the cost of transitioning their televisions to a
digital broadcast signal, which is estimated to cost at least $50 for each
analog TV in households without cable or satellite, or require the purchase
of new digital-ready TVs.
[SOURCE: Consumers Union]
http://www.consumersunion.org/pub/core_telecom_and_utilities/002261.html...

TESTIMONY OF MR JAMES YAGER, CEO OF BARRINGTON BROADCASTING ON BEHALF OF NAB
"First and foremost, protecting over-the-air viewers must be a priority."
[SOURCE: National Association of Broadcasters]
http://www.nab.org/Newsroom/PressRel/testimonies/052605DTVHouseTestimony...

TESTIMONY OF KYLE McSLARROW PRESIDENT AND CEO, NATIONAL CABLE &
TELECOMMUNICATIONS ASSOCIATION
"The bottom line...is that cable customers will notice no change from the
day before the transition to the day after."
[SOURCE: National Cable & Telecommunications Association]
http://www.ncta.com/press/press.cfm?PRid=604&showArticles=ok

SHOULD DTV MUST-CARRY BE EXPANDED, SUNSET, OR PRESERVED AS-IS?
In an age of telecommunications convergence and Internet TV, DTV must-carry
is a historical relic that nevertheless is likely to be preserved and
expanded. Given that political reality, this paper makes two
recommendations: 1) in the long-term, must-carry should be sunset and
transformed into a blanket network neutrality rule for the Internet TV era,
and 2) in the short-term, broadcasters should be held to quantifiable and
enforceable public interest standards in exchange for any expansion of
must-carry.
[SOURCE: New America Foundation, AUTHOR: J.H. Snider]
http://www.newamerica.net/Download_Docs/pdfs/Doc_File_2374_1.pdf
Also see:
* Cable: Reject New Must-Carry Bids
In comments filed at the FCC, cable operators and programmers have a
message for broadcasters seeking expanded carriage rights on cable systems:
Give it up.
[SOURCE: Multichannel News, AUTHOR: Ted Hearn]
http://www.multichannel.com/article/CA604785.html?display=Breaking+News&...
(free access for Benton's Headlines subscribers)

MPAA UNLIKELY TO PUSH FOR BROADCAST FLAG IN DTV BILL
The Motion Picture Association of America is unlikely to push for a
broadcast flag component in DTV legislation establishing a 2008 hard date
because the bill's main author, House Commerce Committee Chairman Joe
Barton (R-TX) is against the provision. Meanwhile, the MPAA will keep
briefing House and Senate members on a broadcast flag bill's importance and
seek other ways to get the content protections it wants. A new
Congressional Research Service report raises concerns that the broadcast
flag's technological limitations could hinder activities normally deemed
"fair use" under copyright law. For instance, students might not be able
to e-mail themselves copies of projects incorporating digital video content
because no secure system exists for email transmission. "The goal of the
flag was not to impede a consumer's ability to copy or use content lawfully
in the home, nor was the policy intended to 'foreclose use of the Internet
to send digital broadcast content where it can be adequately protected from
indiscriminate redistribution,'" the report said, quoting from the FCC order.
[SOURCE: Communications Daily, AUTHOR: Paul Gluckman]
(Not available online)

TELEVISION

TEXAS BILL'S FAILURE GOOD FOR CABLE
Analyst Craig Moffett of Sanford C. Bernstein & Co. said the failure of the
Texas state senate to pass a bill that would have centralizing franchise
authority at the state's Public Utilities Commission is good news for cable
operators -- especially Time Warner Cable, which will add to its
already-significant presence by gaining systems in the Adelphia
Communications acquisition. It will also benefit direct-broadcast satellite
vendors, especially EchoStar, as SBC will continue to rely on that vendor
to provide video for its three-product bundle. Analysts saw Texas as the
bellwether state for the telcos' regulatory-reform plans on video because
of SBC's local presence and its historic success in deregulatory efforts
both with the legislature and utility regulators. But cable operators
sought the support of local cities, which stood to lose their traditional
local regulatory power. According to analysts, the local-regulatory lobby
turned the tide against the telco effort.
[SOURCE: Multichannel News, AUTHOR: Linda Haugsted]
http://www.multichannel.com/article/CA604932.html?display=Breaking+News&...
(free access for Benton's Headlines subscribers)
* Texas Bill Death Boosts TW, EchoStar
http://www.broadcastingcable.com/article/CA605025?display=Breaking+News&...
(free access for Benton's Headlines subscribers)
* Phone Firms Lose Out on Statewide TV Franchises
http://www.washingtonpost.com/wp-dyn/content/article/2005/05/31/AR200505...

FROG NET CITES FCC IN BAGGING TADPOLE BLOCK
The WB Television Network will get out of the afternoon kids'-programming
business starting in January 2006, instead programming a two-hour weekday
WB-branded block of off-network product to replace its kids'-programming
block from 3 p.m.-5 p.m. At the same time, the network will expand its
Saturday-morning block from four hours to five. As reasoning for the move
away from weekday kids fare after a decade, The WB pointed to the growth of
24-hour cartoon cable channels including Nickelodeon, Disney Channel and
its own sibling, Cartoon Network, "fulfilling, to a great extent, the
demand for kids' programming in the afternoons for viewers and
advertisers," it said in announcing the decision. The WB also said the
FCC's decision that promotional material will now be counted as commercial
time toward the ad cap in kids shows contributed to the move. " This
rulemaking created regulatory uncertainty concerning the wisdom of
continuing with the Monday through Friday block." the network said in a
statement. In November 2004, the FCC revised its definition
of "commercial matter" to include promos for TV shows. That limits
the network's ability during that key 3-5 p.m. time period to promote other
shows within the block, the Saturday kids block, or its network programming.
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
http://www.broadcastingcable.com/article/CA604766.html?display=Breaking+...
(free access for Benton's Headlines subscribers)

QUICKLY

UNIONS STRUGGLE AS COMMUNICATIONS INDUSTRY SHIFTS
Since 1985, the number of union workers in telephone and data services has
been cut in half, to fewer than 275,000, from 625,000. To slow the rapid
decline, unions are fighting to organize workers at cable and wireless
companies. They have had little success, outside a big victory in 2000 when
they organized workers at Cingular Wireless. The industry was once a labor
stronghold after the Bell monopolies became unionized in the late 1930's.
But mergers, deregulation and technological change have reduced the number
of jobs at the traditional phone companies while creating hundreds of
thousands of jobs in cable and wireless companies, which are largely
union-free.
[SOURCE: New York Times, AUTHOR: Matt Richtel]
http://www.nytimes.com/2005/06/01/business/01labor.html
(requires registration)

NEWSROOM DIVERSITY: WAS IT JUST A 1990s IDEAL?
A report on newsroom diversity to be released today shows that the
percentage of minority employees at major papers peaked 5-10 years ago.
[SOURCE: Editor&Publisher, AUTHOR: Mark Fitzgerald ]
http://www.editorandpublisher.com/eandp/news/article_display.jsp?vnu_con...

FEC TREADS INTO STICKY WEB OF POLITICAL BLOGS
Draft rules from the Federal Election Commission, which enforces campaign
finance laws, would require that paid political advertisements on the
Internet declare who funded the ad, as television spots do. Similar
disclaimers would be placed on political Web sites, as well as on e-mails
sent to people on purchased lists containing more than 500 addresses. The
FEC also is considering whether to require Web loggers, called bloggers, to
disclose whether they get money from a campaign committee or a candidate
and to reveal whether they are being paid to write about certain candidates
or solicit contributions on their behalf. These rules would not affect
citizens who don't take money from political action committees or parties.
[SOURCE: Chicago Tribune, AUTHOR: Dawn Withers]
http://www.chicagotribune.com/news/nationworld/chi-0505310158may31,1,624...

FCC SEEKS COMMENT REGARDING POSSIBLE REVISION OR ELIMINATION OF RULES
The FCC is seeking comment, until September 1, on rules adopted by the
agency in calendar years 1993, 1994 and 1995 which have, or might have, a
significant economic impact on a substantial number of small entities. The
list of rules under consideration makes for great beach -- and you know
this proceeding with be a topic at your next dinner party.
[SOURCE: Federal Communications Commission]
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DA-05-1524A1.doc

KIDS PRIVACY RULE UNDER REVIEW
The Federal Trade Commission (FTC) is asking educators and others to
comment on its implementation and subsequent enforcement of the Child
Online Privacy Protection Act (COPPA), the law that requires Internet
operators to get parental consent before collecting personal information
from web surfers under age 13. The FTC is trying to determine whether to
retain the rule as is, modify it, or eliminate it altogether and is asking
for public comment on current practices for collecting and disclosing
children's information; opinions regarding children's ability to access
information online; and the operation of web sites that specifically target
children.
[SOURCE: eSchool News, AUTHOR: Corey Murray]
http://www.eschoolnews.com/news/showStoryts.cfm?ArticleID=5686

MARYLAND ADOPTS COMPUTER-RECYCLING FEE
Starting next year, computer makers that want to do business in Maryland
must kick in up to $5,000 annually to help recycle their products under a
new state law designed to cope with the roughly 60,000 tons of "electronic
waste" that pile up in Maryland each year.
[SOURCE: Washington Post, AUTHOR: Dina ElBoghdady]
http://www.washingtonpost.com/wp-dyn/content/article/2005/05/31/AR200505...
(requires registration)
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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.
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