November 2005

DIGITAL DIVIDE
Computer and Internet Use in the United States: 2003
DTV legislation must Expand Availability of Unlicensed Spectrum to Promote
Affordable Broadband Access
Cellphone industry's best customers speak Spanish

OWNERSHIP
FCC Approves SBC/AT&T and Verizon/MCI Mergers
BellSouth Likes to Go it Alone
Level 3 Communications To Buy Rival WilTel
Susquehanna Sells Radio, Cable for Nearly $2 Billion
Google Will Return to Scanning Copyrighted Library Books

BROADCASTING
Local Public Television Stations Call for Major Reform of the CPB Board
Cronyism and secrecy run rampant at Corporation for Public Broadcasting
TIA Praises House Commerce Committee Passage of DTV Legislation
Turning off TV helps keep pounds off, studies reaffirm
TV in Your Pocket Is the Next Small Thing

POLICYMAKERS
Lawmakers Grill Officials Over Interoperability Problems
Lawmakers Rebuff FCC On Piracy Rules
The Digital Money Mill
Looking Back on the Presidents' Policy Wonks

QUICKLY -- Two Items Dropped From FCC Agenda; Semiannual Regulatory Agenda;=
=20
Howard Stern Gets Sirius; Telecommuters May Face New Taxes; High court=20
won't hear wireless radiation appeal; Economic Security and National=20
Security; Rated PG (pretty good)

ADDITIONAL TELECOM MERGER COVERAGE/REACTION

DIGITAL DIVIDE

COMPUTER AND INTERNET USE IN THE UNITED STATES: 2003
[SOURCE: Census Bureau, AUTHOR: Jennifer Cheeseman Day, Alex Janus, and=20
Jessica Davis]
Sure, you might have expected release of this data, oh, maybe two years=20
ago, but this report provides information about the characteristics of=20
households and people
who have and have not adopted use of computers and the Internet. Between=20
1984 and 2003, household computer use climbed from 8% to 62%. Household=20
Internet access has grown from 18% in 1997 to 50% in 2001 to 55% in 2003.=
=20
For those looking for fresh Digital Divide date, it's here: 35% of=20
households with householders aged 65 and older, about 45% of households=20
with Black or Hispanic householders, and 28% of households with=20
householders who had less than a high school education had a computer. In=
=20
addition, 41% of one-person households and 46% of nonfamily households=20
owned a computer. Differences among households in Internet access mirror=20
those for computer ownership. High-income households were more likely to=20
have a computer or Internet access. Among family households with incomes of=
=20
$100,000 or more during the 12 months prior to the survey, 95 percent had=
=20
at least one computer and 92 percent had Internet access at home. Among=20
family households with incomes below $25,000, 41 percent had a computer and=
=20
31 percent had Internet access. the three top reasons for not having=20
Internet access in the home: 1) =93don't need it, not interested=94 (39=20
percent), 2) =93costs are too high,=94 and 3) =93no computer or computer=20
inadequate=94 (each at 23 percent).
http://www.census.gov/prod/2005pubs/p23-208.pdf

DTV LEGISLATION MUST EXPAND AVAILABILITY OF UNLICENSED SPECTRUM TO PROMOTE=
=20
AFFORDABLE BROADBAND ACCESS
[SOURCE: Consumers Union press release]
Twenty-five public interest organizations have signed a letter sent to the=
=20
US Senate urging Congress to set aside portions of the digital broadcast=20
band for unlicensed use and direct the FCC to complete its stalled=20
rulemaking to open unassigned TV channels in each market (TV band =93white=
=20
space=94) for unlicensed wireless broadband services. "Use of these airwave=
s=20
via an unlicensed wireless broadband platform," the groups write, "would be=
=20
of enormous benefit to consumers, public safety agencies, and small=20
businesses that seek low-cost communications to promote job growth." The=20
groups conclude: "Any legislation that fails to address the spectrum needs=
=20
of Americans in the 21st century fails to serve the public interest. The=20
DTV transition represents an historic opportunity to maximize efficient use=
=20
of public resources to meet public needs."
http://www.consumersunion.org/pub/core_telecom_and_utilities/002822.html...
re

CELLPHONES INDUSTRY'S BEST CUSTOMERS SPEAK SPANISH
[SOURCE: The Christian Science Monitor, AUTHOR:Sara Miller Llana]
Hispanics are outpacing others in navigating the newest horizons of the=20
wireless world. They're placing greater importance on taking pictures with=
=20
their phones and sending text messages far and wide, according to market=20
research companies. They are more likely to have unplugged their land lines=
=20
altogether. And compared with the general market, they shell out 10 percent=
=20
more money for their wireless bills. Telecommunications companies have=20
taken note, rushing to capture the market of 40 million Hispanics in the=20
US, from new immigrants to affluent Latin Americans who have been in the US=
=20
for decades.
http://www.csmonitor.com/2005/1101/p01s03-ussc.html

OWNERSHIP

FCC APPROVES SBC/AT&T AND VERIZON/MCI MERGERS
[SOURCE: Federal Communications Commission]
On Monday, the Federal Communications Commission approved the mergers of=20
SBC Communications with AT&T and Verizon Communications with MCI. The=20
Commission concluded that consumers will reap the rewards of the public=20
interest benefits that will flow from these mergers: integration of=20
complementary networks; stable, reliable U.S.-owned companies that will=20
provide improved service to government customers and benefit national=20
defense and homeland security [we're feeling safer already]; increased=20
economies of scale and scope for the merged companies; and substantial cost=
=20
savings which, in theory, will be passed on to customers. The FCC did adopt=
=20
13 conditions on the mergers including: offering "naked DSL", DSL rate=20
freezes for 30 months, and a two year commitment to conduct business in a=
=20
way that comports with the Commission's Internet policy statement issued in=
=20
September. (There's lots of coverage/reaction to this action. See more at=
=20
the bottom of this email.)
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-261936A1.doc
* Mega-Mergers Get Thumbs Up From FCC
http://www.njtelecomupdate.com/lenya/telco/live/tb-SEXU1130793719558.html

BELLSOUTH LIKES TO GO IT ALONE
[SOURCE: USAToday, AUTHOR: Leslie Cauley]
BellSouth and SBC together own Cingular, the largest cell phone carrier in=
=20
the US. Last winter, SBC approached BellSouth about merging the two=20
companies and BellSouth countered with an offer to merge the assets of=20
BellSouth and SBC to create three separately traded companies -- a=20
traditional phone company, representing the local and long-distance assets;=
=20
a wireless business; and Yellow Pages. SBC walked away from the proposal=20
and, instead, focused on the purchase of AT&T. One little-discussed aspect=
=20
of the SBC-AT&T deal is its impact on Cingular. Once the AT&T merger=20
closes, BellSouth will be in the unenviable position of having to compete=
=20
against its wireless partner. SBC -- which intends to rename itself AT&T --=
=20
plans to storm BellSouth's Southeastern territory soon after the merger.=20
Verizon-MCI has a similar plan. But BellSouth's larger problem, analysts=20
say, is its think-small strategy. Blair Levin, of Legg Mason Wood Walker,=
=20
says he wouldn't be surprised to see BellSouth get picked off -- probably=
=20
by SBC -- soon after the AT&T deal closes.
http://www.usatoday.com/printedition/money/20051101/1b_bellsouthcov01.ar...
tm

LEVEL 3 COMMUNICATIONS TO BUY RIVAL WITEL
[SOURCE: Wall Street Journal]
Telecom-service provider Level 3 Communications agreed to buy rival WilTel=
=20
Communications from Leucadia National Corp. for $680 million in cash and=20
stock, in a deal analysts said could help stabilize a market troubled by=20
too much supply. Both companies sell data-transmission capacity on their=20
large fiber-optic networks to other companies in the phone, cable and=20
Internet businesses. WilTel's largest customer, SBC Communications is=20
buying AT&T (see above) and plans to move its traffic onto AT&T's network.
http://online.wsj.com/article/SB113076827509884174.html?mod=3Dtodays_us_...
ey_and_investing
(requires subscription)

SUSQUEHANNA SELLS RADIO, CABLE FOR NEARLY $2 BILLION
[SOURCE: MediaWeek, AUTHOR: Katy Bachman]
Cumulus Media, the 11th largest radio group, and a group of investors, have=
=20
inked a deal to purchase Susquehanna's 33 radio stations for $1.2 billion.=
=20
Comcast has agreed to purchase SusCom, Suquehanna's cable and broadband=20
assets for $775 million. As the largest privately owned radio group in the=
=20
U.S., Susquehanna Radio was one of the most sought-after collection of=20
radio stations in the nation, with stations in some of the nation's largest=
=20
markets including Atlanta, Dallas, Houston, San Francisco, Cincinnati,=20
Indianapolis, Kansas City, and York (PA), Susquehanna's headquarters.=20
Through a management agreement, Cumulus Media will manage the new group for=
=20
$4 million a year, bringing the number of markets in which Cumulus manages=
=20
stations from 61 to 67. In effect, Cumulus Media be managing the third=20
largest portfolio of radio stations in terms of revenue after No. 1-ranked=
=20
Clear Channel and No. 2-ranked Infinity Broadcasting. Cumulus, which=20
operates 293 stations, had annual 2004 revenue of $284.5 million.=20
Susquehanna had annual revenue of $228.9 million. For Comcast, which had=20
already owned 30 percent of Susquehanna's cable and broadband services=20
division, the purchase of SusCom adds another 225,000 cable subscribers in=
=20
Pennsylvania, New York, Maine, and Mississippi, many in close proximity to=
=20
systems already served by Comcast.
http://www.mediaweek.com/mw/news/recent_display.jsp?vnu_content_id=3D100...
2527
* MAP Demands FCC Review Comcast's Susquehanna Deal
October 31, 2005 MAP filed a motion demanding that the FCC include a review=
=20
of Comcast's latest cable deal to acquire Susquehanna as part of=20
Comcast/Adelphia/Time Warner transaction. The proposed Susquehanna deal=20
would further consolidate Comcast's grip on Northeast. Increased regional=
=20
consolidation poses a real threat to democracy as it erodes marketplace=20
competition and concentrates power over quality, price, and content.
http://www.mediaaccess.org/

GOOGLE WILL RETURN TO SCANNING COPYRIGHTED LIBRARY BOOKS
[SOURCE: Wall Street Journal, AUTHOR: Kevin J. Delaney=20
kevin.delaney( at )wsj.com & Jeffrey A. Trachtenberg jeffrey.trachtenberg( at )wsj.co=
m]
Google will resume scanning copyrighted library books into its search=20
engine after a self-imposed hiatus, despite the efforts of some publishers=
=20
and authors to block it from doing so without the copyright holders'=20
permission. It will focus on scanning copyrighted works that are out of=20
print and is seeking publishers' permission to digitize books that are=20
still available new from bookstores. The company hadn't publicly disclosed=
=20
that it was targeting out-of-print works for its initial scanning efforts=
=20
although it says that was always its policy. That distinction could=20
strengthen its argument that the project won't negatively affect book=20
sales. But it isn't likely to lead the two groups suing Google over the=20
Print Library Project to back down.
http://online.wsj.com/article/SB113081241343684922.html?mod=3Dtodays_us_...
ketplace
(requires subscription)

BROADCASTING

LOCAL PUBLIC TELEVISION STATIONS CALL FOR MAJOR REFORM OF THE CPB BOARD
[SOURCE: Association of Public Television Stations]
The Association of Public Television Stations (APTS) has put forward a=20
series of legislative changes to elevate the professionalism and=20
de-politicize the governance of the Corporation for Public Broadcasting,=20
maintain local station support, and guarantee public broadcasting=92s=20
editorial integrity. The proposals put forward by the board include: 1)=20
Increasing professionalism and local station representation by requiring=20
that at least two of the political appointments be representatives from=20
public television stations and at least two be representatives of public=20
radio stations. Currently, one seat each is reserved for public television=
=20
and radio station representatives. The reforms also call for greater=20
station participation in consultations on all CPB funding decisions. 2)=20
Restoring political balance by reducing to eight the number of seats=20
reserved on the CPB board for political appointments by the president, with=
=20
no more than four being members of the same political party. Currently, the=
=20
president can appoint five members of his own party to a nine-person board.=
=20
As now, Senate confirmation would be required for these seats. 3)=20
De-politicizing and further professionalizing the CPB board by adding five=
=20
voting ex officio seats designated for persons that lead five other=20
national arts, cultural and scientific organizations. This change is=20
consistent with the 1979 report of the Carnegie Commission on the Future of=
=20
Public Broadcasting. 4) Promoting transparency of CPB board actions by=20
explicitly requiring that the CPB board meet in open session, with only=20
narrowly defined exceptions. 5) Further ensuring balance by requiring that=
=20
the CPB board chair and vice-chair not be from the same political party. 6)=
=20
Further de-politicizing the organization by explicitly prohibiting the CPB=
=20
board and management from hiring outside political lobbyists or consultants.
http://www.apts.org/

CRONYISM AND SECRECY RUN RAMPANT AT CORPORATION FOR PUBLIC BROADCASTING
[SOURCE: Free Press press release]
On Monday Free Press, the Center for Digital Democracy and Common Cause=20
deplored the recent hiring of government propagandists and GOP loyalists to=
=20
top positions at the Corporation for Public Broadcasting (CPB) and demanded=
=20
that the agency make public a forthcoming Inspector General's report on=20
ethical violations and partisan interference by its board members. Free=20
Press, the Center for Digital Democracy and Common Cause have repeatedly=20
called for greater openness and accountability at the CPB. The three groups=
=20
testified at the most recent CPB board meeting about the need for greater=
=20
transparency and more public involvement. Earlier this year, Free Press and=
=20
Common Cause delivered more than 150,000 petitions to the CPB, demanding an=
=20
end to partisan interference at the agency.
http://www.freepress.net/press/release.php?id=3D102

TIA PRAISES HOUSE COMMERCE COMMITTEE PASSAGE OF DTV LEGISLATION
[SOURCE: Telecommunications Industry Association press release]
The Telecommunications Industry Association (TIA) praises the U.S. House of=
=20
Representative Committee on Energy and Commerce for passing the Digital=20
Television Transition Act of 2005. "The DTV transition will clear 108 MHz=
=20
of prime spectrum. The propagation characteristics of this particular=20
spectrum band make it extremely desirable for innovative broadband=20
applications and state-of-the-art first responder communications," states=
=20
TIA President Matthew J. Flanigan. "Once the transition is complete, the=20
ability of our public safety agencies to communicate with one another will=
=20
improve dramatically. Moreover, consumers will benefit from new advanced=20
commercial networks and services that stimulate jobs and the U.S. economy."
http://www.tiaonline.org/media/press_releases/index.cfm?parelease=3D05-79

TURNING OFF TV HELPS KEEP POUNDS OFF, STUDIES REAFFIRM
[SOURCE: USAToday, AUTHOR: Nanci Hellmich]
Limiting television time is a key to losing weight and keeping it off, and=
=20
children who watch a lot of TV aren't nearly active enough. Those are the=
=20
findings of two new studies presented at a recent meeting in Vancouver of=
=20
the Obesity Society, an organization of weight-loss professionals. The=20
studies add to the growing body of evidence that the nation's couch-potato=
=20
mentality is contributing to obesity in adults and children.
http://www.usatoday.com/printedition/life/20051101/d_couchpotato01.art.htm

TV IN YOUR POCKET IS THE NEXT SMALL THING
[SOURCE: Los Angeles Times, AUTHOR: Meg James]
Welcome to the age of fast-food TV: nuggets of news and entertainment that=
=20
can be consumed on cellphones, video game consoles and digital music=20
players. Whether the programming is downloaded via iTunes software or over=
=20
a cellular network, the trend is changing where -- and how -- TV watchers=
=20
are tuning in. "The notion of a particular screen being tied to a=20
particular kind of content is breaking down," said Van Baker, an analyst=20
with Gartner Inc. "It's what kind of screen is available to me right now,=
=20
and that's what I'll use." For Hollywood, cellphones with color screens and=
=20
the ability to download video files couldn't come at a better time.=20
Executives are under pressure to find new revenue as the industry's most=20
powerful profit engines -- DVD sales, 30-second commercial spots and=20
syndicated TV reruns -- lose steam. Broadcast networks and cable channels,=
=20
wary of losing advertising dollars to the Internet, have been experimenting=
=20
for months to learn what works -- and what doesn't -- on an itty-bitty=20
screen. "What are the three things that you always have with you? Your=20
money, your keys and your cellphone," said Lucy Hood, president of Fox=20
Mobile Entertainment. "If we can deliver a fun entertainment experience on=
=20
this device, that will make it a very powerful medium." TV stations=20
affiliated with the major networks also are worried about the effect of=20
cellphones and digital video players. Specifically, they fear an erosion of=
=20
their ability to charge premium rates for commercial time during popular=20
programs. Some executives say fears that shows lose their value when they=
=20
are distributed on other platforms are overblown.
http://www.latimes.com/news/printedition/front/la-fi-mobile1nov01,1,5788...
.story?coll=3Dla-headlines-frontpage
(requires registration)

POLICYMAKERS

LAWMAKERS GRILL OFFICIALS OVER INTEROPERABILITY PROBLEMS
[SOURCE: Technology Daily, AUTHOR: Chloe Albanesius]
Last week, members of a House Homeland Security subcommittee lashed out at=
=20
federal officials for their lackluster efforts on encouraging the=20
development of communication systems that can work across jurisdictions.=20
Long before the terrorist attacks of Sept. 11, 2001, "the FCC dropped the=
=20
ball" on such interoperability by not giving emergency responders the=20
"necessary networking and bands," charged Rep. Bill Pascrell (D-NJ)., the=
=20
panel's ranking member. The agency "left our first responders out to dry,=
=20
and somebody's got to be held accountable," complained Rep Pascrell, who=20
contended that the FCC has more of an interest in curtailing obscenity and=
=20
approving communications mergers than public safety. Subcommittee Chairman=
=20
Dave Reichert (R-WA) said interoperability problems did not suddenly begin=
=20
on 9/11, but have been plaguing emergency responders for decades. Reichert=
=20
said that when he was a law enforcer in the early 1970s, he tried to notify=
=20
fellow officers of an armed suspect lying in wait. But his radio failed,=20
and he was forced to tackle the young offender to prevent him from shooting=
=20
unsuspecting colleagues. "That's not five years ago, that's almost 30 years=
=20
ago," he said.
http://www.njtelecomupdate.com/lenya/telco/live/tb-HIQI1130790853553.html

LAWMAKERS REBUFF FCC ON PIRACY RULES
[SOURCE: Technology Daily, AUTHOR: Sarah Lai Stirland]
Despite entertainment industry worries about content piracy via=20
high-definition televisions and radio broadcasts, members of Congress over=
=20
the past couple of weeks have declined to give the FCC the power to enact=
=20
rules on those fronts. Going forward, lobbyists face a more difficult=20
challenge in finding an appropriate legislative vehicle for language that=
=20
would authorize the FCC specifically to mandate anti-piracy technologies in=
=20
television sets and digital radio equipment.
http://www.njtelecomupdate.com/lenya/telco/live/tb-BXSJ1130790633490.html

THE DIGITAL MONEY MILL
[SOURCE: New York Times, AUTHOR: Editorial Staff]
[Commentary] The Online Freedom of Speech Act, put on a fast track in the=
=20
hope that nobody notices outside the political-industrial complex, would=20
exempt the Internet from the hard-won three-year-old reform law that=20
stopped federal officials from tapping corporations, unions and fat cats=20
for unregulated donations in the quid pro quo marketplace. The reform law's=
=20
ban on such "soft money" abuses would continue for political ads on radio=
=20
and television and in print. But the Internet would become a free-fire zone=
=20
without any limits on spending or reporting requirements. The bill uses=20
freedom of speech as a fig leaf, pasted on in the guise of defending=20
political bloggers from government censorship. In fact, bloggers face no=20
such threat under the existing campaign law. But make no mistake: this is a=
=20
bill to protect political bagmen, not bloggers.
http://www.nytimes.com/2005/11/01/opinion/01tues3.html
(requires registration)

LOOKING BACK ON THE PRESIDENTS' POLICY WONKS
[SOURCE: Washington Post, AUTHOR: Cindy Skrzycki]
Inside the Office of Management and Budget is the 25-year old the Office of=
=20
Information and Regulatory Affairs which oversees the federal rulemaking=20
bureaucracy. Next Monday, the AEI-Brookings Joint Center for Regulatory=20
Studies will gather four OIRA administrators and others in the regulatory=
=20
nexus to examine how various presidents have used that oversight function=
=20
to achieve political and policy goals. Most of the nine office=20
administrators have left a stamp on OIRA's operation that reflects the=20
regulatory philosophy of the administration in power. Some were public in=
=20
their positions, while others were wizard-like, hiding behind an=20
impenetrable curtain. All had power to shape regulatory policy that would=
=20
affect business, public interest groups and, in many cases, every American.=
=20
They are the Supreme Policy Wonks. The office reviews about 600 of the=20
4,000 or so rules that the federal government issues each year, those with=
=20
an impact of at least $100 million on the economy. It has authority to set=
=20
procedures for agencies' scientific and economic assessment of rules and to=
=20
change or kill proposals that don't jibe with an administration's political=
=20
agenda. The administrator is the only staff member subject to Senate=20
approval. Gary Bass , founder and executive director of OMB Watch , a=20
public-interest group created in 1983 in part to monitor OIRA, said the=20
office was "the Marine Corps of agencies" in its early years. "They would=
=20
come in and run right over you. They overrode the agencies. They threatened=
=20
budget cuts." "It used to be a sledgehammer approach; now it's an ice pick.=
=20
It's more sculpted and surgical," said Bass, comparing the treatment of=20
rules in earlier Republican administrations with this one's.
http://www.washingtonpost.com/wp-dyn/content/article/2005/10/31/AR200510...
1736.html
(requires registration)

QUICKLY

TWO ITEMS DROPPED FROM FCC AGENDA
[SOURCE: Federal Communications Commission]
During Monday's open meeting, the FCC did not consider 1) a First Report=20
and Order and Further Notice of Proposed Rulemaking concerning the=20
Emergency Alert System rules and 2) a Report and Order to adopt rules for=
=20
satellite carriage of "significantly viewed" television stations pursuant=
=20
to the Satellite Home Viewer Extension and Reauthorization Act (SHVERA). No=
=20
word on when these items will be considered.
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-261934A1.doc

SEMIANNUAL REGULATORY AGENDA
[SOURCE: Federal Communications Commission]
We've been having trouble sleeping lately and have become addicted to the=
=20
FCC's Semiannual Regulatory Agenda, a list of the major items and=20
significant proceedings under development or review by the Commission. The=
=20
agenda is published to encourage public participation (some of this I don't=
=20
make up).
http://www.neca.org/wawatch/wwpdf/103105_3.pdf
Federal Register:=20
http://frwebgate4.access.gpo.gov/cgi-bin/waisgate.cgi?WAISdocID=3D808291...
81+0+0+0&WAISaction=3Dretrieve

HOWARD STERN GETS SIRIUS
[SOURCE:AlterNet, AUTHOR: Evan Derkacz]
Will Howard Stern and satellite radio -- unhampered by pesky indecency=20
regulation -- bury Clear Channel and the traditional format? Or,=20
considering the way corporate entities gobble each other up these days,=20
will it even matter?
http://www.alternet.org/mediaculture/27502/

TELECOMMUTERS MAY FACE NEW TAXES
[SOURCE: Wall Street Journal, AUTHOR: Tom Herman tom.herman( at )wsj.com and=20
Rachel Emma Silverman rachel.silverman( at )wsj.com]
Some 9.9 million people work at home full- or part-time for employers other=
=20
than themselves, according to the Telework Advisory Group at WorldatWork,=
=20
an association for human-resources professionals. As telecommuting has=20
become increasingly popular in recent years -- and as higher gas prices=20
make commuting even more expensive -- millions of people are working in one=
=20
state for employers in other states. Tax issues may arise over which state=
=20
or states can tax a worker's income. The Supreme Court has just let stand a=
=20
New York state decision in a case of a Tennessee man who telecommuted to=20
New York and was charged by that state for taxes on all his income.
http://online.wsj.com/article/SB113081145979284900.html?mod=3Dtodays_us_...
sonal_journal
(requires subscription)

HIGH COURT WON'T HEAR WIRELESS RADIATION APPEAL
[SOURCE: Reuters, AUTHOR: Jeremy Pelofsky]
Maybe that ringing in your ear isn't just a ringtone. The Supreme Court has=
=20
allowed class-action lawsuits against wireless telephone providers and=20
manufacturers over radiation emissions to go forward. Exposure to high=20
levels of radiation can cause adverse health effects, but it is less clear=
=20
the impact on a wireless phone user who is exposed to low levels of=20
radiation when a phone is held to an ear directly. Health advocates have=20
expressed concerns about radiation causing problems ranging from headaches=
=20
to tumors. But the wireless industry has pointed to U.S. government=20
statements that scientific evidence so far has not shown any health=20
problems associated with wireless phone use. Five class-action lawsuits=20
were filed in state courts seeking damages, including money for wireless=20
users to buy a headset or reimburse those who had already had purchased=20
one. A U.S. district court judge dismissed the five lawsuits on the grounds=
=20
that state regulation of wireless phone emissions was preempted by the FCC,=
=20
but the U.S. Court of Appeals for the 4th Circuit overturned that decision=
=20
and reinstated the cases.
http://today.reuters.com/news/newsArticle.aspx?type=3DtechnologyNews&sto...
D=3D2005-10-31T215053Z_01_MOL157293_RTRUKOC_0_US-COURT-WIRELESS.xml

ECONOMIC SECURITY AND NATIONAL SECURITY: NEXT STEPS FOR THE PRESIDENT'S=20
SPECTRUM INITIATIVE
[SOURCE: National Telecommunications and Information Administration]
At a Department of Defense Summit on Monday, Assistant Commerce Secretary=
=20
Michael Gallagher delivered a speech with the following conclusions: 1)=20
Spectrum dependent services are essential to the United States=92 national=
=20
security and economic security -- DoD has been a pivotal contributor to our=
=20
world leading spectrum policy. 2) IP services are having a very dramatic=20
and positive impact on the U.S. economy. 3) This Administration is=20
committed to spectrum policies that create a domestic and international=20
environment for economic growth by removing barriers to the implementation=
=20
of U.S. technologies and services. 4) Satisfy the United States=92 domesti=
c=20
requirements and provide worldwide spectrum policy leadership.
http://www.ntia.doc.gov/ntiahome/speeches/2005/MGallagher_DOD_10312005.htm

RATED PG (PRETTY GOOD)
[SOURCE: Los Angeles Times, AUTHOR: Jack Valenti]
[Commentary] Former Motion Picture Assn. of America President Jack Valenti=
=20
defends the movie rating system he helped create nearly 40 years ago.
http://www.latimes.com/news/printedition/opinion/la-oe-valenti1nov01,1,7...
444.story?coll=3Dla-news-comment
(requires registration)

ADDITIONAL TELECOM MERGER COVERAGE/REACTION

* FCC Approves Verizon, SBC Mergers
[SOURCE: Washington Post, AUTHOR: Arshad Mohammed]
By allowing the deals to go through, the commission is essentially closing=
=20
the books on a decade-long regulatory experiment that tried to pit local=20
and long-distance companies against each other. Instead, the commissioners=
=20
are betting on a new world of competition from wireless, cable and=20
Internet-based providers that analysts said may take years to emerge as=20
real contenders. "The analysis here is much more about where the market is=
=20
going than about where the market is," said Legg Mason Wood Walker Inc.=20
telecom analyst Blair Levin. "If you look at markets in long-distance and=
=20
local service, traditional antitrust analysis would be very troubled by=20
this. If you look at what the opportunities are, what the potential is,=20
there is greater justification for this," he said. While growing fast, VOIP=
=20
and cable are not yet major players. "These conditions are not nearly=20
enough," said Mark Cooper, the Consumer Federation of America's research=20
director. "Chairman Martin's failure to agree to meaningful protections=20
against pricing abuse means competitors can be squeezed out of the market=
=20
and consumers face price increases."
http://www.washingtonpost.com/wp-dyn/content/article/2005/10/31/AR200510...
0843.html
(requires registration)

* Telecom mergers get FCC's blessing
http://www.usatoday.com/printedition/money/20051101/2b_telecoms01.art.htm

* Telecom megamergers get final federal OK
[SOURCE: C-Net|News.com, AUTHOR: Marguerite Reardon]
http://news.com.com/Telecom+megamergers+get+final+federal+OK/2100-1037_3...
24285.html?tag=3Dnefd.top

* FCC Approves Verizon-MCI Pact And SBC's Purchase of AT&T
[SOURCE: Wall Street Journal, AUTHOR: Amy Schatz Amy.Schatz( at )wsj.com]
http://online.wsj.com/article/SB113078698450984422.html?mod=3Dtodays_us_...
e_one
(requires subscription)

* FCC Imposes Naked DSL on SBC, Verizon
http://www.multichannel.com/article/CA6279914.html?display=3DBreaking+News
(requires subscription)

* FCC Chairman Martin: "Let me say that I do not believe that all of the=20
conditions imposed today are necessary. I believe that the affected=20
markets would remain vibrantly competitive absent these=20
conditions. Nevertheless, the parties involved have chosen to make these=
=20
commitments now in order to obtain the certainty of immediate Commission=20
approval for their mergers. I understand their desire to move forward, and=
=20
agree that the public interest will be well served by providing certainty=
=20
sooner rather than later."
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-261936A2.doc

* Commissioner Abernathy: "As approved...I fear that many of these=20
potential gains will be delayed or compromised. In my judgment, the=20
conditions included in the Orders before us require the merged companies to=
=20
provide offerings that the market might not demand, to sacrifice synergies=
=20
by needlessly treating their affiliates at arms' length, and to maintain=20
business relationships based on current assumptions even if those=20
assumptions cease to reflect economic reality. Moreover, the companies=20
will have to abide by these conditions while their most aggressive=20
competitors -- whether they use wireline, wireless, cable, or other,=20
next-generation facilities -- remain exempt."
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-261936A3.doc

* Commissioner Copps: "If you seek the reason why we haven't arrived at=20
that happy valley of competition rife with consumer benefits, you can start=
=20
with the misdirected policies of the FCC over the last several years. On=
=20
too many fronts, the Commission put the spear to the pro-competitive=20
policies of the Telecommunications Act of 1996. It put intra-modal=20
competition for the residential market pretty much beyond reach for new=20
entrant carriers and then proceeded to inhibit enterprise competition,=20
too. We turned our eyes away when enforcement was needed to keep=20
bottleneck facilities open. And all the while we kept singing confidently=
=20
"Don't Worry, Be Happy"-inter-modal competition is going to save us with=20
all its new options. Maybe, but then again maybe not-we're still=20
waiting. I think we ought to be concerned. Thanks in part to our actions,=
=20
the wireline market became increasingly the province of the few. More than=
=20
half of the wireless market came under the control of incumbent wireline=20
providers. New services like VoIP have been held back by the high cost of=
=20
broadband in this country. And now the Internet backbone seems headed in=
=20
the same direction of control by a favored few. This state of affairs is=20
not of my making or choosing. The record shows that I objected=20
vociferously to many of these changes. I would have chosen a very=20
different path than the one we travel today. But in the end, we are=20
charged with considering these mergers in the context of the world that is,=
=20
not the one that might have been."
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-261936A4.doc

* Commissioner Adelstein: "While I am deeply concerned about the=20
concentration and loss of wireline competition that may occur as a result=
=20
of these mergers, I concur in these Orders because they each include a=20
minimum set of conditions that tip the balance, albeit narrowly, in favor=
=20
of approval."
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-261936A5.doc

* Ohio=92s utility consumer advocate reacts to federal approval of Telecom=
=20
Mergers
[SOURCE: Office of the Ohio Consumers=92 Counsel press release]
=93It is disappointing that the mergers were approved without significant=
=20
benefits for residential consumers. While some broadband-related conditions=
=20
advocated by the OCC were included, the FCC missed the opportunity to=20
ensure that consumers receive their fair share of the benefits. Now, it is=
=20
important for states that have not yet approved the mergers to do=20
everything possible to secure consumer benefits. Since Ohio law requires=20
that the merger promote the public interest, the OCC has proposed=20
conditions to ensure that enough is done on behalf of residential=20
customers. The OCC has asked the Public Utilities Commission of Ohio to=20
ensure price stability, consumer protections and better access to services.=
=20
From capped local telephone prices to greater access to technology, we=20
hope that additional conditions will be placed on the mergers to help=20
customers.=94
http://www.pickocc.org/news/2005/1031v22005.shtml

* Consumer Advocates to FCC: Approval of the Telecom Mergers a Mixed Bag
[SOURCE: Consumers Union press release]
=93Given the failure of the Department of Justice to impose any meaningful=
=20
conditions on the SBC-AT&T and Verizon-MCI mergers last week, and the=20
desire of Federal Communications Commission (FCC) Chairman Kevin J. Martin=
=20
to impose no conditions whatsoever, Commissioners Copps and Adelstein have=
=20
been forced to carry a heavy burden to protect consumers and preserve the=
=20
openness of the Internet,=94 said Mark Cooper, Director of Research at the=
=20
Consumer Federation of America (CFA). =93Approval of these mergers undermin=
es=20
more than 20 years of efforts to introduce competition into the residential=
=20
local and long distance telecommunications market,=94 said Gene Kimmelman,=
=20
senior director of public policy for Consumers Union. =93The FCC promises=
=20
cross-technology competition with Internet phone service on cable and=20
telephone systems, but the Commission has failed to ensure that consumers=
=20
will receive meaningful choices at fair prices,=94 Kimmelman added. =93Chai=
rman=20
Martin=92s failure to agree to meaningful protections against pricing abuse=
=20
means competitors can be squeezed out of the market and consumers face=20
price increases.=94 Cooper added. =93The short term enforcement of network=
=20
neutrality, and the absence of similar enforcement mechanisms for other=20
telephone and cable companies, means that Internet service providers and=20
applications developers can be undermined by anticompetitive practices of=
=20
network owners.=94 =93These conditions are not nearly enough. Even if the=
=20
Commission were to follow-up vigorously =96 which is unlikely given the=20
Chairman=92s opposition to even these minimal conditions =96 Congress will =
have=20
to step in to restore an open communications network that supports=20
competition, promotes innovation and protects consumers,=94 Cooper said.=20
=93Above all, today=92s action underscores how critical it is for Congress =
to=20
jump in and prohibit any form of discrimination that prevents all consumers=
=20
from receiving affordable, high-speed Internet from diverse commercial=20
vendors,=94 Kimmelman said.
http://www.consumersunion.org/pub/core_telecom_and_utilities/002823.html...
re

* Public Knowledge Statement on FCC Approval of Telecom Mergers
[SOURCE: Public Knowledge press release]
We are pleased that the Federal Communications Commission (FCC) was able to=
=20
persuade SBC and Verizon to follow principles that will allow consumers=20
unlimited accessibility to the Internet. Some consumers, at least in the=20
short run, should benefit by this decision because the conditions of the=20
merger will make the net neutrality principle, among others,=20
enforceable. We are disappointed, however, that the companies are required=
=20
to follow those principles only for two years, rather than as a permanent=
=20
condition of the merger. Public Knowledge believes that the relatively=20
short duration of the imposition of those conditions makes it imperative=20
that Congress and other policymakers act to ensure that all consumers, not=
=20
only the customers of SBC and Verizon, will always have the right to access=
=20
information, to use applications and to attach equipment of their choice to=
=20
the network. That policy is one of five that PK has proposed as part of our=
=20
paper, =93Principles for an Open Broadband Future.=94 The Public Knowledge=
=20
policies are that the Internet should be: 1. open to competition from any=
=20
entity, including municipalities; 2. open to the attachment of any=20
equipment the user chooses, as long as it does not harm the technical=20
operation of the broadband network; 3. open and accessible to consumers,=20
application developers, and information service providers and to other=20
networks, without restrictions or degradation, except for law enforcement=
=20
or for network management purposes; 4. open, available and affordable to=20
all consumers, regardless of income, race, geographic location, or=20
disability; and 5. open to the maximally efficient number of licensed and=
=20
unlicensed wireless providers.
http://www.publicknowledge.org/pressroom/releases/pressrelease.2005-10-3...
555036822

* FCC Commissioners Rubber Stamp Bell Mergers
The following quote can be attributed to Earl Comstock, President and CEO,=
=20
COMPTEL: "In approving these two mergers the FCC has conflated the public=
=20
interest with the self-interest of SBC and Verizon. These mergers are a big=
=20
step toward recreating the old AT&T monopoly that the Reagan Administration=
=20
courageously dismantled. The FCC's rubber stamp approval comes just days=20
after the Department of Justice acted. The public has had no chance to=20
analyze or comment on whether the Justice Department conditions have even=
=20
minimal consumer protection value, yet the FCC felt compelled to rush their=
=20
decision to meet SBC and Verizon's timetable. Taken together, the=20
conditions imposed by the FCC and Justice will not come close to addressing=
=20
the anti-competitive harms that will be caused by the mergers. The=20
conditions 'won' by the Democratic commissioners are mere fig leafs=20
designed to give the appearance of consumer protection. Today's decision is=
=20
bad news for American consumers and businesses. The clear result will be=20
higher prices, less innovation, diminished choices, and fewer jobs."
http://www.comptelascent.org/news/recent-news/103105.html
--------------------------------------------------------------