February 2006

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

THIS WEEK'S AGENDA
Senate Hearings on Universal Service
Digital Welfare: The Failure of the Universal Service System
'Informal' Kids Rules Kick in March 1

GOVERNMENT & COMMUNICATIONS
True Democracy has Independent Media
Muffling the Voice of America
Government: Google's Privacy Concerns Unfounded

MEDIA OWNERSHIP
The FCC Crawl
FCC OKs Gray Purchase of WNDU-TV
Loud and Clear, an Outlet for Churches, Immigrants
Turner leaving the board of Time Warner

TELEVISION
Industry Fiercely Opposes Unbundled TV
This Year's Marxist Economics
Study Finds Test Scores Not Lowered by Television
Cable Nudity Nixed (in Michigan)
Digital product placement alters TV landscape
At CBS News, investigative reporting gets a higher profile

INTERNET/BROADBAND
Broadband Service Rare for Rural Net Users
Net Neutrality Debate Travels to Europe
Cyberthieves Silently Copy as You Type

QUICKLY -- The world's a cell-phone stage

THIS WEEK'S AGENDA

SENATE HEARINGS ON UNIVERSAL SERVICE
[SOURCE: Benton Foundation]
In a full day of hearings Tuesday, the Senate=20
Commerce Committee will be examining the=20
contribution and distribution mechanisms for a=20
web of federal and state subsidies aimed at=20
making telephone service affordable throughout=20
the country more affordable. Congress is=20
considering reforming these subsidies, known as=20
Universal Service, to broaden both the base of=20
telecommunications companies that pay for the=20
subsidies and make new services -- like=20
high-speed Internet access -- eligible for=20
support. The Benton Foundation is closely=20
watching this debate and has summaries of the=20
major Universal Service modernization bills being=20
considered in our Telecommunications Legislation Tracker.
http://www.benton.org/index.php?q=3Dtaxonomy/term/4
Links to hearings --
* USF Contributions
http://commerce.senate.gov/hearings/witnesslist.cfm?id=3D1707
* USF Distributions
http://commerce.senate.gov/hearings/witnesslist.cfm?id=3D1708

DIGITAL WELFARE: THE FAILURE OF THE UNIVERSAL SERVICE SYSTEM
[SOURCE: Pacific Research Institute, AUTHOR: Vince Vasquez]
Pacific Research Institute calls universal=20
service a "federal welfare system that=20
redistributes revenue from the telecommunications=20
industry." This paper argues that: 1) For more=20
than 20 years, Universal Service Fund (USF)=20
administrators have disbursed more than $48=20
billion to universal service recipients, a=20
massive undertaking that has spiraled out of=20
control. The USF budget has nearly doubled in=20
just the last eight years, resulting in a=20
tripling of the =93telecom tax=94 on long distance=20
calling providers. 2) Due to political pressures,=20
short-sighted USF rules have entrenched local=20
carriers with wasteful subsidies and deterred new=20
entrants with economic disincentives, denying=20
needy communities the greater benefits of a=20
competitive marketplace. A lack of adequate=20
oversight has also generated endless cases of=20
fraud and abuse, as ravenous recipients have=20
exploited the Fund for financial profit and=20
personal gain. 3) Many of the problems ailing USF=20
have also afflicted many state-based funds. 4) To=20
fix the Universal Service Fund=92s financial=20
problems, program proponents have suggested=20
creating new taxes and regulations on high-speed=20
Internet access, as well as advanced=20
communications services like Voice over Internet=20
Protocol (VoIP). But with the United States=20
already ranking a dismal 16th for broadband=20
deployment in the world, a new Internet=20
bureaucracy will only further hamstring our=20
national competitiveness in the global=20
marketplace. 5) As Congress now debates the next=20
steps for the Fund, members should consider the=20
merits of introducing pro-competitive policies=20
such as technology-neutral vouchers for the=20
neediest consumers, and rules that ensure public=20
accountability and safeguard cutting-edge=20
innovations. USF should stop subsidizing failure,=20
and work towards drastically reducing the=20
government=92s role in telephone connectivity.
http://www.pacificresearch.org/pub/sab/techno/2006/Digital_Welfare.pdf
See press release:
http://www.pacificresearch.org/press/rel/2006/pr06-02-27.html

'INFORMAL' KIDS RULES KICK IN MARCH 1
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
Wednesday March 1 is the date Viacom, CBS,=20
Disney, Fox, NBC Universal, Time Warner,=20
Discovery, 4Kids Entertainment, and the=20
Association of National Advertisers have agreed=20
to come into compliance with a compromise on new=20
kids rules struck with kids TV activists. The=20
deal, which both sides say they have presented to=20
the FCC, would leave in place the requirement=20
that broadcasters air three hours of children's=20
TV per channel in both analog and digital. In=20
addition, the media companies agreed not to=20
challenge limits on the display of commercial Web=20
sites during children's programming. Under the=20
rules, scheduled to kick in Jan. 1, those=20
displays would count toward the ad limits in kids=20
programming. The groups agreed to a modified form=20
of host selling in which the use of TV characters=20
to sell products to kids would be confined to=20
specific areas of a Web site if that Web address=20
was displayed in shows that featured those=20
characters. The key is that there will have to be=20
a buffer between the character and a sales pitch.=20
Arguably the biggest deal was on program=20
promotion in kids shows. The FCC rules as=20
currently constituted count any program promotion=20
in a kids show as an advertisement, reducing the=20
amount of paid ads that can air during the show.=20
Under the agreement, show promos for kids shows=20
on the same channel or educational kids shows on=20
any channel would not count as ad time. In=20
addition, there would be no numerical limits, as=20
the current rules contain, on the ability of=20
broadcasters to preempt kids shows for live sports and other programming.
http://www.broadcastingcable.com/article/CA6310815?display=3DBreaking+Ne...
referral=3DSUPP
(free access for Benton's Headlines subscribers)
* FCC Proposes More Kids Fines
Of course, some stations still have problems with the old rules...
http://www.broadcastingcable.com/article/CA6310770?display=3DBreaking+Ne...
referral=3DSUPP
(free access for Benton's Headlines subscribers)

GOVERNMENT & COMMUNICATIONS

TRUE DEMOCRACY HAS INDEPENDENT MEDIA
[SOURCE: Seattle Post Intelligencer 2/24, AUTHOR:=20
Kenneth F. Bunting kenbunting( at )seattlepi.com]
[Commentary] Secretary of Defense Donald Rumsfeld=20
said last week that the military's controversial=20
practice of paying to plant stories favorable to=20
the United States in the Iraqi media had been=20
brought to an end. But three days later, he=20
clarified the statement, explaining that the=20
practice and its propriety were "under review,"=20
but yet to be prohibited. What was not clear=20
after Sec Rumsfeld's clarification is whether he=20
now approves of a communications strategy that=20
includes paying Iraqi media outlets for the tone,=20
content and placement of news stories. He insists=20
that the military's initiative to influence the=20
U.S. image in the Iraqi news media has always=20
been, and always will be, about spreading=20
truthful and accurate information. But if our=20
long-term goal in Iraq is to create a sustainable=20
democracy, it does not seem like an ethically=20
sound or effective step toward that goal to be=20
encouraging that war-torn country's=20
fast-developing but fledgling news media to sell=20
its message and become the mouthpiece of an occupying government.
http://seattlepi.nwsource.com/opinion/260680_bunting24.html
See also --
* America's woeful failure in the war of ideas
http://www.centredaily.com/mld/centredaily/news/opinion/13947961.htm

MUFFLING THE VOICE OF AMERICA
[SOURCE: Boston Globe, AUTHOR: John J. Schulz,=20
College of Communication at Boston University]
[Commentary] it is with growing dismay that I=20
read news of the latest spending plans being=20
discussed by members of the Bush administration=20
and their advisers for how best to influence=20
Muslims and attitudes in the Muslim world.=20
Congress is being asked for an additional $75=20
million to ''support democracy" in Iran, and=20
unnamed State Department officials are saying it=20
will be used to ''improve radio broadcasts, begin=20
satellite broadcasts, and include money for=20
scholarships for Iranian students to come to the=20
United States." Nowhere is VOA mentioned. While=20
abandoning VOA as a ''relic of the Cold War" and=20
ignoring nearly 50 years of reputation and good=20
standing among Middle Eastern audiences (some of=20
whom get VOA on local AM or FM relay broadcasts,=20
as well as shortwave), the White House is casting=20
about for ways to connect with Islamic audiences=20
globally when the answer is just 10 blocks away at the VOA headquarters.
http://www.boston.com/news/globe/editorial_opinion/oped/articles/2006/02...
/muffling_the_voice_of_america/

GOVERNMENT: GOOGLE'S PRIVACY CONCERNS UNFOUNDED
[SOURCE: C-Net|News.com, AUTHOR: Greg Sandoval]
The Justice Department has denied requesting=20
anything from Google that could threaten the=20
privacy of the search-engine's users, as the=20
company recently contended. But by trying to=20
block the government's efforts to review a week's=20
worth of search terms, Google is holding up=20
efforts to protect children from pornography,=20
according to a brief filed Friday by the Justice=20
Department. The U.S. Justice Department was=20
responding to Google's legal filing earlier this=20
month, in which the search giant argued that the=20
government's request for 1 million pages from=20
Google's index, as well as copies of a week's=20
worth of search terms, would harm the company in=20
numerous ways. The information the Justice=20
Department requested is to be used in a study to=20
help the Bush administration defend the 1998=20
Child Online Protection Act (COPA), an Internet=20
pornography law. The government is seeking to=20
highlight flaws in Web filtering technology=20
during a trial this fall. Google maintains that=20
complying with the government's request would=20
mean disclosing important trade secrets, take up=20
too many of the company's resources to produce=20
and harm its reputation with users.
http://news.com.com/Government+Googles+privacy+concerns+unfounded/2100-1...
_3-6043338.html?tag=3Dnefd.top

MEDIA OWNERSHIP

THE FCC CRAWL
[SOURCE: Broadcasting&Cable, AUTHOR: Editorial Staff]
[Commentary] There is an urgent need for the FCC=20
to stop debating and start deciding on new=20
TV-station=ADownership rules. The arrival of The CW=20
and My Network TV is not simply creating new=20
programming choices for stations that are already=20
the weakest outlets in their markets. This=20
development is fraught with peril. In small=20
markets, some of the stations that are forced to=20
pick a new network=97or go independent=97are already=20
surviving on the margins. If they make the wrong=20
decisions now, they will pay dearly for their=20
mistakes. Broadcasters need to be able to create=20
the economies of scale that allow them to be=20
competitive. The last time the ownership-rules=20
rewrite almost made it onto the agenda was July.=20
Then, it was pulled from the monthly meeting=20
because, according to Chairman Kevin Martin, the=20
commission was =93still debating some of the issues=20
back and forth about how much time for comment=20
[and] what we should do about making sure there=20
is adequate public input.=94 At the time, the=20
commissioners said they recognized the need for=20
speed and regulatory certainty. What followed was=20
apparent amnesia and an industry forced to ask=20
for waivers while the commission figures out=20
permanent rules about what they can and can't=20
own. An FCC insider suggests that new=20
Commissioner Robert McDowell likely will not be=20
onboard until April. That, combined with the=20
political sensitivity of the rewrite, probably=20
means that nothing will happen until after the=20
November elections. The station-ownership issue=20
is not proceeding at a snail's pace. It's at a=20
dead stop. FEMA could get you a glass of water=20
faster. It's time to confirm the president's=20
choice for the final commission spot and get the=20
rule review under way. June will mark two years=20
since the Philadelphia appeals court told the FCC=20
to better justify its reasoning behind the=20
deregulatory changes it proposed. Some poor=20
stations -- and we mean that literally -- don't have much more time to wait.
http://www.broadcastingcable.com/article/CA6311003?display=3DOpinion&ref...
al=3DSUPP
(free access for Benton's Headlines subscribers)

FCC OKs GRAY PURCHASE OF WNDU-TV
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
The FCC Friday approved the transfer of WNDU-TV=20
South Bend (IN) from Notre Dame University to=20
Gray Television. Gray had sought a waiver to buy=20
the station even though it owns a nearby=20
newspaper. Gray has promised to spin off the=20
weekly The Goshen News (circulation 16,094) and=20
the FCC has approved the sale and given it six months to complete the spino=
ff.
http://www.broadcastingcable.com/article/CA6310979?display=3DBreaking+Ne...
referral=3DSUPP
(free access for Benton's Headlines subscribers)

LOUD AND CLEAR, AN OUTLET FOR CHURCHES, IMMIGRANTS
[SOURCE: Boston Globe, AUTHOR: Robert Preer]
Connecticut-based Principle Broadcasting Network=20
has signed a $4.5 million deal with the Asher=20
family of Quincy to acquire 1300-AM WJDA of=20
Quincy and 1230-AM WESX of Salem. Principle=20
Broadcasting's president, Otto Miller, said=20
nearly all of the air time on the stations will=20
be leased to religious organizations, most of=20
them Hispanic churches, but also some Brazilian=20
and African-American groups. The churches will=20
produce their own shows and sell advertising,=20
according to Miller. He said he plans to keep the=20
WJDA and WESX transmitters but close the=20
stations' separate studios, instead opening a=20
studio for both stations in Chelsea. Miller plans=20
improvements to the transmitters that will boost=20
the signals of the 1,000-watt stations and allow=20
them to be heard loud and clear in Boston.=20
Minority communities in the region will benefit=20
from the programming, according to Miller. The=20
new shows will enable immigrants to stay=20
connected to their culture while also helping=20
them to integrate into US society, he said. WJDA=20
was founded in 1947 by James D. Asher whose=20
initials became the call letters. It has long=20
been known for its local focus, from coverage of=20
mayoral press conferences and City Council=20
meetings to high school sports and the chatty=20
''Party Line" call-in show. Music is mostly pop=20
classics. Many in Quincy are lamenting its impending change.
http://www.boston.com/news/local/massachusetts/articles/2006/02/26/loud_...
_clear_an_outlet_for_churches_immigrants/?rss_id=3DBoston+Globe+--+City+Wee=
kly

END OF AN ERA: TURNER LEAVING THE BOARD OF TIME WARNER
[SOURCE: Atlanta Journal-Constitution, AUTHOR: Matt Kempner & Caroline Wilb=
ert]
Severing official ties to the TV networks so=20
closely linked to his identity and that of=20
Atlanta, CNN founder Ted Turner isn't running for=20
reelection to the board of Time Warner, the New=20
York media giant to which he sold his=20
Atlanta-based Turner Broadcasting. Despite sales=20
and philanthropic giving of his shares, he=20
remains the company's largest individual=20
shareholder, with more than $500 million in=20
stock. His departure from the board this spring=20
would make it easier for the 67-year-old Turner=20
to sell his Time Warner holdings or speak his=20
mind more freely -- though he hasn't always=20
resisted the latter during his decade on the=20
board. His power within the company has waned.=20
USAToday reports that Turner's departure from the=20
board appears to symbolically close the book on a=20
colorful media career during which he reshaped=20
news, entertainment and sports. He pioneered the=20
use of satellites to distribute ad-supported=20
channels to cable operators nationwide --=20
circumventing the expensive land lines that ABC,=20
CBS and NBC used to dominate television. He=20
launched channels such as CNN, TNT and Cartoon=20
Network and collected entertainment assets=20
including the Atlanta Braves, animation company=20
Hanna-Barbera and New Line Cinema. =93He's one of=20
the greatest visionaries many of us will ever=20
know,=94 says former cable leader Leo Hindery.=20
=93Without CNN, the cable industry would never have=20
matured and evolved as it did. The rest of us=20
were putting in wires. Ted gave us something to watch.=94
http://www.ajc.com/business/content/business/stories/0224turnertimewarne...
tml
* =91Visionary leader' Turner to leave Time Warner board
http://www.usatoday.com/printedition/money/20060227/3b_tedturner27.art.htm

TELEVISION

INDUSTRY FIERCELY OPPOSES UNBUNDLED TV
[SOURCE: Associated Press, AUTHOR: Seth Sutel]
The cable industry argues that if consumers are=20
free to drop less-viewed channels, many of them=20
would go out of business, and others would have=20
to sharply raise their per-customer rates to stay=20
afloat. "Bundling" them together helps spread=20
costs around and supports a variety of=20
programming. many industry analysts don't see the=20
FCC forcing cable to offer a la carte pricing,=20
but Consumers Union believes government=20
intervention will ultimately have to regulate how=20
networks make contracts with cable operators, as=20
neither the programmers or cable companies have any incentive to rock the b=
oat.
http://www.businessweek.com/ap/financialnews/D8FVM21O4.htm?campaign_id=3...
n_tech_up&chan=3Dtc
* Networks: A La Carte Threatens Diversity
http://www.phillyburbs.com/pb-dyn/news/24-02242006-617883.html

THIS YEAR'S MARXIST ECONOMICS
[SOURCE: Broadcasting&Cable, AUTHOR: Robert Corn-Revere]
[Commentary] The FCC's =93Further Report=94 on cable=20
=E0 la carte pricing should be seen for what it is:=20
a piece of advocacy, not reasoned policymaking.=20
This complete reversal of the FCC's position=20
within one year of the agency's original report=20
to Congress is unprecedented. It ignores prior=20
studies of the issue, including those by the=20
Government Accountability Office, and it=20
seriously misstates the record the FCC has=20
previously assembled. The report's lack of=20
substance likely doesn't matter, since it may=20
already have served its purpose. Announcing the=20
redo helped FCC Chairman Kevin Martin pressure=20
major operators into creating family-programming=20
tiers. The report also led the usual array of=20
pro-regulation advocates to crow about the=20
reversal and to demand a legislative response.=20
Serious policymakers should demand more: a real study instead of a stratage=
m.
http://www.broadcastingcable.com/article/CA6311002?display=3DOpinion&ref...
al=3DSUPP
(free access for Benton's Headlines subscribers)

STUDY FINDS TEST SCORES NOT LOWERED BY TELEVISION
[SOURCE: New York Times, AUTHOR: Elizabeth Jensen]
Does television rot children's brains? A new=20
study by two economists from the University of=20
Chicago taps into a trove of data from the 1960's=20
to argue that when it comes to academic test=20
scores, parents can let children watch TV without=20
fear of future harm. The new study is based on=20
what the authors call a "natural experiment" that=20
resulted from the way television was introduced=20
in the United States in the late 1940's and early=20
1950's, when some cities got TV service five=20
years ahead of others. Data from cities where=20
preschoolers were exposed to the new technology,=20
and data from cities where they were not, was=20
correlated with test scores from about 300,000=20
students nationwide in 1965, as collected in the=20
Coleman Report, a survey done under the Civil=20
Rights Act. The study also looked at test scores=20
from pre- and post-TV age groups within cities.=20
The result showed "very little difference and if=20
anything, a slight positive advantage" in test=20
scores for children who grew up watching TV early=20
on, compared to those who did not. In nonwhite=20
households and those where English was a second=20
language or the mother had less than a high=20
school education, TV's positive effect was more marked.
http://www.nytimes.com/2006/02/27/business/media/27brain.html
(requires registration)

CABLE NUDITY NIXED
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
The Michigan Supreme Court has let stand a=20
lower-court ruling finding that nudity on cable=20
television is indecent exposure. A Michigan court=20
of appeals last May found that Michigan's=20
indecent-exposure statute applies to television=20
and that TV nudity =93can be more offensive than a=20
more traditional public exposure.=94 Moreover, =93the=20
incidental restriction on defendant's First=20
Amendment freedom is not greater than is=20
essential to the furtherance of the governmental=20
interest in promoting public morality by=20
prohibiting public nudity,=94 the appeals court=20
concluded. =93We see no reason to read into the=20
statute a limitation that would prevent its=20
application to defendant's televised and,=20
therefore, powerfully effective exposure.=94 The=20
conviction trumps cable's hallowed First=20
Amendment protections, at least in that court's=20
jurisdiction -- the decision is not binding on=20
other trial courts -- and could still give other=20
jurisdictions a road map for regulating cable=20
indecency. The case may be appealed to the=20
Supreme Court, but a lawyer involved in the case=20
said, "absent any disagreement in the lower=20
courts or some evidence that the problem is=20
widespread beyond Michigan, I think the chance=20
the court will take the case is pretty slim.=94
http://www.broadcastingcable.com/article/CA6310819?display=3DNews&referral=
=3DSUPP
(free access for Benton's Headlines subscribers)

DIGITAL PRODUCT PLACEMENT ALTERS TV LANDSCAPE
[SOURCE: Reuters, AUTHOR: Steve Gorman]
Blending brand names and products into television=20
shows, as opposed to traditional ads that run=20
during commercial breaks, has gained greater=20
currency in recent years as the television=20
industry faces the rising popularity of TiVo and=20
other devices that let viewers skip commercials.=20
But some industry experts suggest that product=20
placement -- digital or otherwise -- has limited=20
value in delivering a commercial message.=20
Hollywood producers and writers also have raised=20
concerns about their work being turned into=20
virtual infomercials, and consumer activists have=20
fretted about blurring the line between entertainment content and advertisi=
ng.
http://today.reuters.com/news/newsArticle.aspx?type=3DtechnologyNews&sto...
D=3D2006-02-26T165858Z_01_N26385839_RTRUKOC_0_US-BIZFEATURE-DIGITAL-ADVERTI=
SING.xml

AT CBS NEWS, INVESTIGATIVE REPORTING GETS A HIGHER PROFILE
[SOURCE: USAToday, AUTHOR: Peter Johnson]
After a series of high-profile journalism=20
scandals, at a time when many Americans doubt the=20
media's accuracy, a safe route for news outlets=20
might be to focus more on soft news and features=20
and less on investigative reporting -- which is=20
not only expensive but risky, especially if=20
you're wrong. Nowhere might this be more true=20
than at CBS News, where several producers lost=20
their jobs, and Dan Rather his CBS Evening News=20
anchor chair, after 60 Minutes' flawed 2004=20
Memogate report questioning President Bush's=20
National Guard service. Yet a week from today,=20
Armen Keteyian, an eight-time Emmy-winning=20
journalist, joins the Evening News as chief=20
investigative correspondent. It's one of the=20
boldest moves yet by CBS News chief Sean McManus,=20
who was charged last October with overhauling the=20
newscast. McManus says establishing a team under=20
Keteyian, a veteran of CBS Sports, ABC News,=20
Sports Illustrated and HBO's Real Sports, harks=20
back to CBS' decades-long tradition of investigative reporting.
http://www.usatoday.com/printedition/life/20060227/mediamix27.art.htm

INTERNET/BROADBAND

BROADBAND SERVICE RARE FOR RURAL NET USERS
[SOURCE: Dallas Morning News, AUTHOR: Terry Maxon]
High-speed Internet service is still just a dream=20
for many Americans who live in rural areas and=20
find themselves beyond the reach of DSL or cable=20
broadband lines. However, in a report released=20
Sunday, the Pew Internet Project says that the=20
broadband gap =96 although still significant =96 is=20
narrowing between rural dwellers and those who=20
live in urban and suburban areas. In 2003, only 9=20
percent of rural residents had home broadband=20
service. Their city counterparts were more than=20
twice as likely to have service =96 21 percent for=20
urban dwellers and 23 percent for suburban=20
dwellers. By the end of 2005, the percentage of=20
rural residents with broadband had more than=20
doubled, to 24 percent. Urban and suburban=20
penetration had gone up somewhat less, to 38=20
percent and 40 percent respectively, an increase=20
of two thirds or less. Even so, in absolute=20
terms, suburban and urban penetration made the=20
most gains in percentage points. This underlies=20
the fact that America has a long way to go to=20
give rural areas the same access to high-speed=20
service that many urbanized areas enjoy. "Rural=20
broadband users are no different than home=20
high-speed users elsewhere; they go online more=20
often and do more online activities than dial-up=20
users," said the report's principal author, John=20
B. Horrigan, Pew Internet Project associate=20
director. "But with a lower proportion of=20
broadband users in rural America than elsewhere,=20
the result is that rural Americans, in aggregate,=20
have a more distant relationship with the=20
Internet than urban and suburban Americans," Mr. Horrigan said.
http://www.dallasnews.com/sharedcontent/dws/dn/latestnews/stories/022706...
uspewstudy.67266fda.html
* Home Broadband Adoption in Rural America
http://www.pewinternet.org/PPF/r/176/report_display.asp
* Survey: Rural broadband users closing gap
http://www.mercurynews.com/mld/mercurynews/business/technology/13970095.htm

NET NEUTRALITY DEBATE TRAVELS TO EUROPE
[SOURCE: Reuters]
Internet content providers such as Google should=20
pay for using new super-fast Internet access,=20
Deutsche Telekom said in a report published=20
Thursday. "These companies need infrastructure,"=20
CEO Kai-Uwe Ricke said. "It cannot be that=20
infrastructure providers like Telekom continue to=20
invest, while others profit from it." Ricke said=20
it would only be fair if content providers like=20
search engine Yahoo--which offers e-mail, online=20
games and music videos--would pay for access to=20
networks that would allow them to deliver their=20
products at higher speeds. "It is not fair that=20
only the customer, via the monthly subscription=20
fee (for using the Internet), pays for this great=20
new world," Ricke said. A Deutsche Telekom=20
spokesman said the company was not seeking to=20
charge Internet content providers for access to=20
infrastructure but rather for offering=20
bandwidth-demanding services such as movie downloads.
http://news.com.com/Should+content+providers+pay+for+better+Net+infrastr...
ure/2100-1034_3-6042880.html?tag=3Dfd_carsl

CYBERTHIEVES SILENTLY COPY AS YOU TYPE
[SOURCE: New York Times, AUTHOR: Tom Zeller, Jr]
There is evidence that among global=20
cybercriminals, phishing may already be pass=E9. In=20
some countries, like Brazil, it has been eclipsed=20
by an even more virulent form of electronic con=20
-- the use of keylogging programs that silently=20
copy the keystrokes of computer users and send=20
that information to the crooks. These programs=20
are often hidden inside other software and then=20
infect the machine, putting them in the category=20
of malicious programs known as Trojan horses, or just Trojans.
http://www.nytimes.com/2006/02/27/technology/27hack.html
(requires registration)

QUICKLY

THE WORLD'S A CELL-PHONE STAGE
[SOURCE: San Francisco Chronicle, AUTHOR: Ryan Kim]
Nothing has matched the seismic cultural shift=20
created by the cell phone, with its ability to=20
connect and deliver content virtually anywhere,=20
anytime. The cell phone clearly inspires mixed=20
feelings for many people. But as time goes on and=20
people grow more accustomed to the cell phone and=20
its attendant ills, it has only further=20
insinuated itself into our lives. In=20
straightforward and sometimes laughable findings,=20
this dependency becomes increasingly apparent.
http://www.sfgate.com/cgi-bin/article.cgi?file=3D/c/a/2006/02/27/CELLPHO...
TMP&type=3Dbusiness
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Communications-related Headlines is a free online=20
news summary service provided by the Benton=20
Foundation (www.benton.org). Posted Monday=20
through Friday, this service provides updates on=20
important industry developments, policy issues,=20
and other related news events. While the=20
summaries are factually accurate, their often=20
informal tone does not always represent the tone=20
of the original articles. Headlines are compiled=20
by Kevin Taglang headlines( at )benton.org -- we welcome your comments.
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