January 2006

A few upcoming events of note: 1) "LPFM: The People's Choice" to air on the=
=20
Hallmark Channel on Sunday, January 8th at 7 am EST and 7 am PST. 2) CPB=20
Board of Directors meet on Monday. 3) "In the global village, where is 'the=
=20
public square'?" -- January 13.
For these and other upcoming media policy events, see http://www.benton.org

TELEVISION/BROADCASTING
Cable America Challenges Station Licenses
The Digital Television Transition and Public Safety Act
Who Will Benefit from DTV Transition?
Drama Over 'Daniel' Poses Dilemma
Catholics Hope to get in on Religious Radio Boom
Community Service Survey En Route to Stations
AT&T enters TV market
Bush: Arabic TV gives False Impression of US

INTERNET
Phone Companies Set Off A Battle Over Internet Fees
Microsoft Defends Censoring a Dissident's Blog in China

QUICKLY -- Millions Resist Shift to Mobiles Fit for 911 Calls; Congress &=
=20
Privacy; A Dialogue with Donahue; Ex-FTC Commissioner Mozelle Thompson=20
joins MAP's Board

TELEVISION/BROADCASTING

CABLE AMERICA CHALLENGES STATION LICENSES
[SOURCE: Broadcasting&Cable, AUTHOR: Allison Romano]
Cable America, a small cable operator with systems in Missouri, Arizona and=
=20
California, is petitioning the Federal Communications Commission to deny=20
license renewals to two Springfield (MO) TV stations. In its filings, Cable=
=20
America claims the stations are being operated as a duopoly by Nexstar in=
=20
violation of FCC ownership rules. =93Nexstar and Mission, through a complex=
=20
web of contracts and operating arrangements, have engaged in a subterfuge=
=20
that violates federal law,=94 Cable America says in a letter to the=20
commission. Nexstar COO Duane Lammers says the petition is =93attempted=20
extortion=94 and adds that the companies have fully disclosed =AD and recei=
ved=20
FCC approval for =AD all of the company=92s joint operations with Mission=
=20
stations. The action comes as Cable America is embroiled in a nasty=20
retransmission consent negotiation with the two outlets, Nexstar=20
Broadcasting=92s KSFX and Mission Broadcasting-owned KOLR. The companies ar=
e=20
at odds over Nexstar=92s demands that cable operators pay subscriber fees t=
o=20
carry its stations and Mission-owned outlets. Talks deteriorated so badly=
=20
that Nexstar pulled the stations=92 signals off Cable America=92s 8,000=20
subscriber system Jan. 1, and the negotiations are stalled. Cable America=
=20
says the ownership arrangement hamstrings competition, including in its=20
retransmission negotiations.
http://www.broadcastingcable.com/article/CA6297279?display=3DBreaking+Ne...
referral=3DSUPP
(free access for Benton's Headlines subscribers)

THE DIGITAL TELEVISION TRANSITION AND PUBLIC SAFETY ACT
[SOURCE: Benton Foundation]
In late December 2005, the House and Senate agreed on legislation to speed=
=20
the nation=92s transition to digital television while helping consumers to=
=20
continue to use their analog televisions, recover spectrum for use by=20
public safety officials and improve emergency communications, and auction=
=20
off additional spectrum to reduce the national deficit. As of January 2006,=
=20
the legislation, a piece of a major budget bill, awaits final approval from=
=20
the House which plans to reconvene just before February. Follow URL below=
=20
for a summary of the bill.
http://www.benton.org/benton_files/dtvbillsummary.doc

WHO WILL BENEFIT FROM DTV TRANSITION?
[SOURCE: SkyReport]
Standard and Poor's Equity Research suggests large media companies may be=
=20
in the best position to exploit opportunities during the future switch from=
=20
analog to digital TV. "Local TV broadcasters that are part of media=20
conglomerates such as Disney, Viacom and News Corp.'s Fox, mostly with=20
leading O&O (owned and operated) stations in major U.S. markets, are=20
well-positioned to negotiate adequate in-kind compensation, including=20
further launches of branded cable networks, or increasingly, forced=20
carriage of multiple digital streams," says Tuna Amobi, Standard and Poor's=
=20
equity analyst for the broadcasting, cable and satellite industries. But=20
Amobi cautions that the $1.5 billion currently budgeted to subsidize=20
digital-to-analog converter boxes may not be enough to ensure an orderly=20
transition. In addition, the Big Tuna says the issue of "multicast=20
must-carry" (whether or not cable operators must carry all of broadcasters=
=20
digital TV signals) will reemerge this year in Congress perhaps through a=
=20
separate bill or an appropriations amendment.
http://www.skyreport.com/#Story1
See Also:
* Sony CEO says move to HD will be watershed
[SOURCE: Reuters]
Sony Chief Executive Howard Stringer said on Thursday he expects the=20
transition to high-definition television and video will be a watershed,=20
surpassing even the move to color TV from black-and-white. He also noted=20
the changing nature of content delivery. Consumers now more than ever=20
control how, when and where they want to view video or listen to music,=20
which, increasingly, is carried about on portable devices such as MP3 playe=
rs.
http://today.reuters.com/news/newsArticle.aspx?type=3DtechnologyNews&sto...
D=3D2006-01-05T204345Z_01_ARM573856_RTRUKOC_0_US-ELECTRONICS-SONY-STRINGER.=
xml
* FCC interested in emergency wireless network
[SOURCE: Federal Computer Week1/3, AUTHOR: Brian Robinson]
will study the feasibility of constructing a nationwide interoperable=20
wireless network for emergency workers using some of the spectrum that TV=
=20
companies will abandon as they transition to digital television. Providing=
=20
mobile broadband communications, in addition to upgraded communications=20
equipment and training, could offer emergency responders many important=20
capabilities, the FCC said in a recent report to Congress. The report was=
=20
required under the Intelligence Reform and Terrorism Prevention Act of 2004.
http://www.fcw.com/article91846-01-03-06-Web

DRAMA OVER 'DANIEL' POSES DILEMMA
[SOURCE: Wall Street Journal, AUTHOR: Brian Steinberg=20
brian.steinberg( at )wsj.com]
When TV shows are controversial, advertisers can get caught in the furor.=
=20
So there's some nervous people on Madison Avenue as three NBC affiliates --=
=20
all owned by the Nexstar Broadcasting Group -- have decided not to air=20
tonight's pilot of The Book of Daniel. Jesus Christ is a main character in=
=20
new series. The drama has drawn fire from the American Family Association=
=20
for its portrayal of Christians. At the urging of the AFA, a conservative=
=20
Christian group, members of the public have contacted television stations=
=20
complaining about the show.
http://online.wsj.com/article/SB113651078509139245.html?mod=3Dtodays_us_...
nion
(requires subscription)
* 'Book of Daniel': A Mean-Spirited, Unholy Mess
[Commentary] "Book of Daniel" just barely merits First Amendment=20
protection, flaunting its edginess with wince-inducing contrivances.
http://www.washingtonpost.com/wp-dyn/content/article/2006/01/05/AR200601...
2423.html
(requires registration)

CATHOLICS HOPE TO GET IN ON RELIGIOUS RADIO BOOM
[SOURCE: Associated Press 1/1, AUTHOR: Emily Fredrix]
The Roman Catholic Church is the largest denomination in America, but you=
=20
wouldn't know it from religious radio. The format is huge -- behind news=20
talk and country it was the third-most numerous format among U.S. radio=20
stations in 2003, according to the radio research firm Arbitron. Yet the=20
number of Catholic stations is only about 120, according to the Catholic=20
Radio Association, and there are about 2,000 religious stations nationwide.=
=20
The Catholic Radio Association has several dozen members, and is hoping to=
=20
add as many as 200 more if a so-called "window of opportunity" from the=20
Federal Communications Commission opens in the next year, which the=20
association expects. The window is the only time that non-profit groups,=20
including churches, universities and public safety groups, can apply for=20
low-power FM stations. The association is appealing to the faithful to=20
raise $150,000 in the next two months so as many as 200 new stations could=
=20
apply to the FCC. It's not clear when the filing window will open. The FCC=
=20
is considering changing the rules that govern the stations, which reach=20
listeners within a 3=BD-mile radius in underserved areas, usually rural or=
=20
midsize markets. The first and only open window for low-power FM stations,=
=20
held in 2000 and 2001, prompted 3,300 applications, the FCC said. More than=
=20
1,200 of the stations were authorized, and 700 are on the air, with several=
=20
dozen applications still pending, the FCC said.
http://www.usatoday.com/news/religion/2006-01-01-catholic-radio_x.htm

COMMUNITY SERVICE SURVEY EN ROUTE TO STATIONS
[SOURCE: National Association of Broadcasters]
The NAB has mailed out the Bringing Community Service Home Survey to=20
broadcast stations and is encouraging them to help demonstrate the=20
exemplary work accomplished by local broadcasters in 2005 by completing=20
this survey. NAB's 2004 survey results claimed broadcasters generated $9.6=
=20
billion in 2003 in service to local communities in the value of airtime=20
donated for PSAs, along with money raised for charity and disaster relief.=
=20
Visit www.broadcastpublicservice.org or contact Terry Ottina of NAB=20
Research and Planning at (202) 775-4977

AT&T ENTERS TV MARKET
[SOURCE: C-Net|News.com, AUTHOR: Marguerite Reardon]
AT&T (formerly SBC) has quietly entered the TV market with the launch of=20
its new Internet-based service in Texas. The company, which has been=20
developing its TV network based on Internet Protocol technology for more=20
than a year, is offering the service to a limited number of customers in=20
San Antonio, where the company is headquartered. In this initial launch,=20
AT&T is offering 200 channels, including HBO, MTV, ESPN, Discovery Channel=
=20
and A&E, along with all three major broadcast networks. It is also offering=
=20
several hours of on-demand programming. The company has built its network=
=20
using IP technology, which will allow it to offer viewers much more=20
interaction than typical TV viewing over today's cable networks. But in=20
this initial release of the service, many of the features aren't available.=
=20
AT&T is extending fiber only to nodes close to homes. And from the nodes,=
=20
the carrier will use the existing copper infrastructure to deliver service.=
=20
Because it has limited bandwidth to devote to its video service, AT&T is=20
delivering it using IP technology. Even though AT&T's approach costs about=
=20
half that of what Verizon is spending, AT&T's network is riskier from a=20
technology perspective because it uses new and evolving technology. But=20
experts agree that eventually all TV networks will use IP to provide more=
=20
interactive content, which means all eyes will be on AT&T as it expands its=
=20
service later this year.
http://news.com.com/AT38T+enters+TV+market/2100-1033_3-6020423.html?tag=...
efd.top

BUSH: ARABIC TV GIVES FALSE IMPRESSION OF US
[SOURCE: Reuters, AUTHOR: Sue Pleming]
President George W. Bush complained on Thursday that Arabic television=20
often gave a false impression of the United States, saying Americans needed=
=20
to do a better job of communicating their ideals. "You can't figure out=20
America when you're looking on some of these TV stations -- you just can't=
=20
-- particularly given the message that they spread," he said. "Arabic TV=20
does not do our country justice." "They ... sometimes put out propaganda=20
that just isn't right, it isn't fair, and it doesn't give people the=20
impression of what we're about."
http://today.reuters.com/news/newsArticle.aspx?type=3DdomesticNews&storyID=
=3D2006-01-06T101115Z_01_KWA601414_RTRUKOC_0_US-BUSH-LANGUAGES.xml&archived=
=3DFalse

INTERNET

PHONE COMPANIES SET OFF A BATTLE OVER INTERNET FEES
[SOURCE: Wall Street Journal, AUTHOR: Dionne Searcey dionne.searcey( at )wsj.com=
=20
and Amy Schatz]
The phone companies envision a system whereby Internet companies would=20
agree to pay a fee for their content to receive priority treatment as it=20
moves across increasingly crowded networks. Those that don't pay the fee=20
would find their transactions with Internet users -- for games, movies and=
=20
software downloads, for example -- moving across networks at the normal but=
=20
comparatively slower pace. Consumers could benefit through faster access to=
=20
content from companies that agree to pay the fees. The size and structure=
=20
of the fee systems remain to be worked out, and the regulatory implications=
=20
aren't clear. But already, the phone companies are meeting heavy resistance=
=20
from companies that say making them pay for priority delivery of their=20
content amounts to holding them ransom, thus hurting competition and,=20
ultimately, the consumer. The looming battle between phone companies and=20
Internet content providers has parallels with the fight between local and=
=20
long-distance phone companies of the 1990s, when upstarts sought free=20
access to the regional phone companies' networks. Until recently, phone=20
companies were required to treat all data sent across their high-speed=20
networks equally and without discrimination. But last year, a Supreme Court=
=20
decision cemented the FCC's authority to decide the rules for broadband=20
Internet lines. The agency promptly deregulated Internet services, dropping=
=20
rules that prevented the type of pricing plans now being proposed. Critics=
=20
of these ideas say that smaller Internet companies will be squeezed out of=
=20
being able to offer their products at all. "They want to radically change=
=20
the way they sell telecommunications service," said Mark Cooper, research=
=20
director of the Washington-based Consumer Federation of America. "We're=20
afraid that they're simply going to pick and choose who's going to win and=
=20
lose."
http://online.wsj.com/article/SB113651664929039412.html?mod=3Dtodays_us_...
e_one
(requires subscription)

MICROSOFT DEFENDS CENSORING A DISSIDENT'S BLOG IN CHINA
[SOURCE: Wall Street Journal, AUTHOR: Kathy Chen kathy.chen( at )wsj.com and=20
Geoffrey A. Fowler]
Microsoft's MSN Spaces, which lets users create their own Web sites or Web=
=20
logs, has shut down a popular Chinese-language blog that has published=20
content potentially offensive to Chinese authorities, amid China's ongoing=
=20
efforts to control information on the Internet. The site had criticized the=
=20
government's firing of top editors at a progressive Beijing newspaper late=
=20
last month. Efforts to access the site from inside and outside China=20
trigger a notice that "the space is temporarily unavailable." A statement=
=20
from the company said: "MSN is committed to ensuring that products and=20
services comply with global and local laws, norms, and industry practices=
=20
in China. Most countries have laws and practices that require companies=20
providing online services to make the Internet safe for local users.=20
Occasionally, as in China, local laws and practices require consideration=
=20
of unique elements." Microsoft declined to provide further details on why=
=20
it took this action.
http://online.wsj.com/article/SB113646995897338592.html?mod=3Dtodays_us_...
ketplace
(requires subscription)
* Microsoft Shuts Blog's Site After Complaints by Beijing
http://www.nytimes.com/2006/01/06/technology/06blog.html?pagewanted=3Dall
* Chinese bloggers take political satire offline
http://today.reuters.com/news/newsArticle.aspx?type=3DinternetNews&storyID=
=3D2006-01-06T111121Z_01_ROB637424_RTRUKOC_0_US-ARTS-CHINA-BLOGGER.xml

QUICKLY

MILLIONS RESIST SHIFT TO MOBILES FIT FOR 911 CALLS
[SOURCE: Wall Street Journal, AUTHOR: Amy Schatz Amy.Schatz( at )wsj.com]
The reluctance of millions of customers to buy newer mobile phones that=20
allow emergency operators to pinpoint their location is creating a huge=20
headache for some wireless companies. That's a problem because the Federal=
=20
Communications Commission had set a Dec. 31, 2005, deadline for 95% of=20
customers to have so-called E911-compliant phones. But approximately seven=
=20
million consumers have resisted giving up their old cellphones. Some=20
customers just don't want to spend the money on a new digital phone=20
equipped with Global Positioning System technology. Others like their older=
=20
phones and don't want the hassle of learning a new one. And still others=20
live in areas without reliable digital service. Five large wireless=20
companies -- Verizon Wireless, Qwest, Alltel, Sprint Nextel and its Nextel=
=20
Partners affiliate -- have asked the FCC for more time to persuade=20
consumers to switch, and the issue is on hold right now, as the agency=20
considers what to do.
http://online.wsj.com/article/SB113651485323539364.html?mod=3Dtodays_us_...
ketplace
(requires subscription)

CONGRESS' HANDS CAUGHT IN COOKIE JAR
[SOURCE: C-Net|News.com, AUTHOR: Declan McCullagh and Anne Broache]
Sixty-six politicians in the U.S. Senate and House of Representatives are=
=20
setting permanent Web cookies even though at least 23 of them have promised=
=20
not to use the online tracking technique, a CNET News.com investigation sho=
ws.
http://news.com.com/Congress+hands+caught+in+the+cookie+jar/2100-1028_3-...
0711.html?tag=3Dnefd.lede

A DIALOGUE WITH DONAHUE
[SOURCE: AlterNet , AUTHOR: Bruce Kluger, Time Out New York]
[Commentary] Phil Donahue got bounced off the air for his anti-war=20
opinions, and he's not ready to make peace just yet.
http://www.alternet.org/mediaculture/30437/

Former Federal Trade Commissioner Mozelle W. Thompson has joined Media=20
Access Project=92s Board of Directors.
http://www.mediaaccess.org/
--------------------------------------------------------------
... and we're outta here. Have a great weekend.
--------------------------------------------------------------
Communications-related Headlines is a free online news summary service=20
provided by the Benton Foundation (www.benton.org). Posted Monday through=
=20
Friday, this service provides updates on important industry developments,=
=20
policy issues, and other related news events. While the summaries are=20
factually accurate, their often informal tone does not always represent the=
=20
tone of the original articles. Headlines are compiled by Kevin Taglang=20
headlines( at )benton.org -- we welcome your comments.
--------------------------------------------------------------