August 2006

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TELECOM REFORM
No Senate Floor Vote Scheduled for Franchise Bill
AT&T's Whitacre: 'Nobody Gets a Free Ride'
Customer Loss to Internet Continues to Hurt Phone Carriers
Telecom Tax Imposed in 1898 finally Ends

TELEVISION
Market Research for Implementation of Digital to Analog
Converter Box Coupon Program
Media General Sells Three Stations

MEDIA & CHILDREN
For Toddlers, a World Laden with Advertising
Tweens and Media: What's Too Adult?

INTERNET
Postal Service Finds a Friend in the Internet
WiFi Mission to Burbank

GOVERNMENT & COMMUNICATIONS
N.Y. Times Must Surrender Reporters' Phone Data
Stop the presidential power grab

QUICKLY -- Media Firms Counted as Small Businesses; AT&T Foundation
gives $1 million to CTCNet; NFL Asks FCC to make Time Warner Carry the Ball

TELECOM REFORM

NO FLOOR VOTE SCHEDULED FOR FRANCHISE BILL
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
Senate Majority Leader Bill Frist (R-TN) has not scheduled a floor
vote this week for the video franchise bill, and is "highly unlikely
to" given the already crowded schedule, according to a source close
to the Leader's office. That likely means a September vote at the
earliest. Senate Commerce Committee Chairman Ted Stevens (R-Alaska)
is still lining up the 60 he needs to defeat a threatened filibuster
of the bill over its absence of strong network neutrality provisions.
Sen Frist has made it clear that he won't schedule a vote until he
can be assured it won't take up floor time only to be mooted by a filibuster.
http://www.broadcastingcable.com/article/CA6358139?display=Breaking+News
See also --
* Why is Congress considering such anti-consumer telecom bills?
[SOURCE: Nieman Watchdag/Harvard University, AUTHOR: Bruce Kushnick]
Activist Bruce Kushnick writes that both telecom bills before
Congress would be huge giveaways to the very same telecommunications
giants that have in the past pocketed massive government subsidies
while shafting consumers and knee-capping American competitiveness.
But they've taken very good care of members of Congress.
http://www.niemanwatchdog.org/index.cfm?fuseaction=about.viewContributor...

AT&T'S WHITACRE: 'NOBODY GETS A FREE RIDE'
[SOURCE: Light Reading, AUTHOR: Mark Sullivan]
AT&T CEO Ed Whitacre spoke to state utilities regulators in San
Francisco Tuesday on a variety of subjects, but the one topic he
seemed to want to block out was the issue of network neutrality.
Whitacre didn't mention the issue in his prepared remarks at the
National Association of Regulatory Utility Commissioners (NARUC)
annual meeting and when network neutrality came up during the Q&A
session, Whitacre quipped: "Well I've got to go; I've got to catch a
plane." Kidding aside, Whitacre likened Internet access to any other
kind of service telcos have offered over the years and said
commercial interests should be allowed to pay for the amount of
access they need. Whitacre complained that "some people" want AT&T to
act as a "dumb pipe that just keeps getting bigger and bigger." He
added about the market demand for bandwidth, "This thing is growing
at a rate that nobody would imagine." He said AT&T networks are now
handling 5.6 Petabytes of data every day. "There's more and more
content, and you need more and more bandwidth, and somebody's got to
build it. If you build it, you have to make a return on that," he
continued. "Nobody gets a free ride, that's all."
http://www.lightreading.com/document.asp?doc_id=100380

CUSTOMER LOSS TO INTERNET CONTINUES TO HURT PHONE COMPANIES
[SOURCE: New York Times, AUTHOR: Ken Belson]
According to Todd Rosenbluth, a telecommunications analyst at
Standard & Poor's, "The threat of competition from cable companies
and Internet phone companies was there a year ago, but the reality of
it is something we're seeing in 2006." He added that the phone
companies were fighting back by discounting and bundling their
services. Verizon and Qwest reported yesterday that the defection of
their residential phone customers to cheaper Internet-based services
picked up speed in the second quarter. But they said that strong
sales of wireless and broadband services, as well as cost-cutting
efforts, offset some of the losses.
http://www.nytimes.com/2006/08/02/technology/02verizon.html
(requires registration)
* Verizon Loses Land-Line Customers, Profit
http://www.washingtonpost.com/wp-dyn/content/article/2006/08/01/AR200608...
* Verizon Unlikely to Buy Vodafone's Wireless Stake
http://online.wsj.com/article/SB115437919580022595.html?mod=todays_us_ma...

TELECOM TAX IMPOSED IN 1898 FINALLY ENDS
[SOURCE: C-Net|News.com, AUTHOR: Marguerite Reardon]
The Spanish-American War has been over for more than 100 years, and
now so is the tax imposed in 1898 to help fund it. Cost over-runs
invoiced by contractor Humbugton have finally been paid and the
President (McKinley, obviously) recently declared gleefully, "We
won!" As of Tuesday, all phone companies selling long-distance phone
service are legally required to eliminate the 3 percent federal
excise tax on long-distance service, which had been established in
1898 as a luxury tax on wealthy Americans who owned
telephones. Verizon Communications said Tuesday that it has stopped
collecting the 3 percent federal excise tax on monthly consumer
telephone bills for long-distance and bundled services. After a long
legal battle and strong urging from Congress, the Internal Revenue
Service and the Department of the Treasury decided in May to
discontinue the federal 3 percent excise tax on long-distance
telephone service effective Aug. 1. The last portion of the tax,
pertaining only to local telephone service, remains in effect. But
Verizon and other telecom companies are urging Congress to repeal the
tax in total this year.
http://news.com.com/Telecom+tax+imposed+in+1898+finally+ends/2100-1037_3...
* Verizon stops excise tax on long distance, bundles
http://today.reuters.com/news/newsArticle.aspx?type=technologyNews&story...

TELEVISION

MARKET RESEARCH FOR IMPLEMENTATION OF DIGITAL TO ANALOG CONVERTER BOX
COUPON PROGRAM
[SOURCE: National Telecommunications and Information Administration]
On July 31, 2006, NTIA published a Request for Information (RFI) to
conduct market research for implementation of the Congressionally
mandated Digital to Analog Converter Box Coupon Program. NTIA is
seeking capability information from organizations with the
experience, qualifications, solution approaches, and best practices
necessary to implement and administer the Coupon Program. This RFI is
for information and planning purposes only and does not constitute a
Request for Proposal. On August 11, 2006, at 10 A.M., NTIA will hold
an Industry Day at the NOAA Auditorium, 1305 East West Highway,
Silver Spring, MD, to give interested organizations an opportunity to
receive an overview briefing on the Coupon Program and to ask
questions about the project. Responses to the RFI should be received
by September 15, 2006, and any questions should be e-mailed to
Catherine.Holland( at )noaa.gov in the Commerce Department's NOAA
Procurement Office.
http://www.ntia.doc.gov/new.html
http://www.ntia.doc.gov/otiahome/dtv/NTIA_DTV_DraftRequirements_073106.htm

MEDIA GENERAL SELLS THREE STATIONS
[SOURCE: TV Newsday/Broadcasting&Cable]
On Tuesday, Media General announced it was selling Chattanooga (TN)
CBS affiliate WDEF to Morris Multimedia for approximately $22 million
as well as CBS affiliates WIAT-TV Birmingham (AL) and KIMT Mason
City/Iowa/Rochester to New Vision Television for $35 million. On
April 6, Media General announced that it would divest four stations
as part of its acquisition of four NBC stations, which the company
completed on June 26. Media General currently owns 30
network-affiliated broadcast television stations, reaching more than
33 percent of all television households in the Southeast and more
than 10 percent of those in the US. The company's publishing assets
include three metropolitan newspapers, The Tampa Tribune, the
Richmond Times-Dispatch, and the Winston-Salem Journal; 22 daily
community newspapers in Virginia, North Carolina, Florida, Alabama
and South Carolina; and more than 100 weekly newspapers and other publications.
* Media General Wraps Sales
http://www.broadcastingcable.com/article/CA6358492.html?display=Breaking...
* Media General Sells WDEF Chattanooga
http://www.tvnewsday.com/articles/2006/08/01/daily.4/
* New Vision Buying Two Media General TVs
http://www.broadcastingcable.com/article/CA6358486.html?display=Breaking...
* Media General website
http://www.mediageneral.com/about/index.htm

MEDIA & CHILDREN

FOR TODDLERS, A WORLD LADEN WITH ADVERTISING
[SOURCE: National Public Radio, AUTHOR: Kim Masters]
For many weary parents of preschoolers, television can be a godsend.
And some of the programming might even be educational. But some
experts say even the most positive children's television can carry
messages that aren't good for children. Research by Vicky Rideout of
the Kaiser Family Foundation has shown that many parents of
preschool-age children have an uneasy awareness of the impact of
commercials on their kids. "One mom mentioned to me [that] her
daughter, who couldn't even talk yet, was humming the McDonald's
jingle every time she saw the Golden Arches," Rideout says. But
Rideout's research says that discomfort does not translate into real
concern for parents. In fact, most parents see appropriate
programming as a godsend. About one-third of children age 6 and
younger even have a television in their room, just so they can watch
their shows while parents are occupied elsewhere. Cyma Zarghami, the
president of Nickelodeon, says her own company's research confirms
that parents aren't worried about television. They focus on issues
such as safety, making family life manageable and living within a
budget. Zaraghami says some parents do complain that food ads aimed
at kids have turned grocery shopping into a challenge. Nickelodeon
tries to address that by promoting some healthy products, such as
Dora the Explorer carrots. But ultimately, Zarghami acknowledges,
Nickelodeon believes that by putting characters on products, they are
serving their real customers: kids.
http://www.npr.org/templates/story/story.php?storyId=5569423

TWEENS AND MEDIA: WHAT'S TOO ADULT?
[SOURCE: National Public Radio, AUTHOR: Lynn Neary]
Parents daily face innumerable decisions about the way their kids
interact with the media. Letting an 8-year-old listen to music that's
a little sexy, or watch certain TV programs, seems pretty innocent
compared to some alternatives. So the question becomes: Where does a
parent draw the line? Wheelock College Professor Diane Levin says
that our culture is so saturated with sexual images that some parents
may not realize how their children process those images. She cautions
parents to consider where it all may end. Experts say that
communication is the most potent line of defense; even the most
careful parents can't be with their kids all the time.
http://www.npr.org/templates/story/story.php?storyId=5595146

INTERNET

POSTAL SERVICE FINDS A FRIEND IN THE INTERNET
[SOURCE: New York Times, AUTHOR: Katie Hafner]
As people send e-mail and e-cards instead of handwritten letters and
greetings, as they pay more bills online and file tax returns
electronically, the Postal Service has started to seem like a drab
and tired reminder of the old way of doing things. Yet the Internet
is actually injecting new life -- and a sorely needed source of
revenue -- into the Postal Service. And it is happening with packages
-- millions of them shipped every day, in a journey that starts with
a few mouse clicks and ends a day or two or five later at a
customer's door. In 2005, revenue from first-class mail like cards
and letters, which still made up more than half the Postal Service's
total sales of $66.6 billion, dropped nearly 1 percent from 2004. But
revenue from packages helped make up for much of that drop, rising
2.8 percent, to $8.6 billion, last year, as it handled nearly three
billion packages. It is impossible to say how many of these were
online orders, but Postal Service officials give e-commerce a lot of credit.
http://www.nytimes.com/2006/08/02/business/02postal.html
(requires registration)

WIFI MISSION TO BURBANK
[SOURCE: Los Angeles Times, AUTHOR: Michelle Keller]
[Commentary] Like an increasing number of cities across the nation,
Burbank offers residents and visitors free wireless in most of
downtown. Twelve access points -- with nine more to come in the next
few months -- allow anyone downtown with a wireless card or
WiFi-ready computer to surf the Web. But does it deliver? Free
wireless is about as fabulous as central air conditioning in the
Valley on a scorching summer day. But there is still a ways to go
before I can surf the Web and Google myself while breezing through
traffic in downtown Burbank. Free wireless has the potential to
attract customers and businesses, boosting the local economy. Yet
rushing to install systems that could become quickly outdated is a
risky proposition.
http://www.latimes.com/news/printedition/opinion/la-ed-wifi02aug02,1,763...
(requires registration)
See a similar story --
* Wireless Net test scores for Caltrain
http://www.mercurynews.com/mld/mercurynews/business/technology/15178739.htm

GOVERNMENT & COMMUNICATIONS

NY TIMES MUST SURRENDER REPORTERS' PHONE DATA
[SOURCE: Washington Post, AUTHOR: Charles Lane]
The New York Times may not withhold reporters' phone records from a
federal grand jury investigating an alleged leak of a pending
government raid on two Islamic charities suspected of supporting
terrorism, a federal appeals court ruled yesterday. A three-judge
panel of the New York-based U.S. Court of Appeals for the 2nd Circuit
ruled 2 to 1 that the Times has no First Amendment or other legal
right to refuse a demand for the records from the grand jury in
Chicago, which was empaneled by U.S. Attorney Patrick J. Fitzgerald.
The government's interest in rooting out a possible crime outweighs
the newspaper's interest in protecting reporters' sources, the court concluded.
http://www.washingtonpost.com/wp-dyn/content/article/2006/08/01/AR200608...
(requires registration)

STOP THE PRESIDENTIAL POWER GRAB
[SOURCE: San Jose Mercury News, AUTHOR: Editorial Staff]
[Commentary] An editorial against legislation proposed by Sen Arlen
Specter (R-PA) and the White House concerning the Administration's
secret wiretapping program. Under the Specter bill, the president
would have the option, but not the obligation, to submit the program
for review by the Foreign Intelligence Surveillance Court, which
would determine whether it violates the Constitution. The FISA court
is ill-equipped to make a judgment on constitutional matters. And
it's no secret why Bush wants it to review the program: because that
would shield it from scrutiny by the federal courts, and in
particular, the U.S. Supreme Court, which has been highly skeptical
of Bush's claims to extraordinary executive powers. Indeed, the
Specter bill would also move lawsuits seeking to expose related
domestic-spying programs, including one filed against AT&T in San
Francisco, from the federal courts to a secret FISA court, whose
judgment would be final. If the Specter bill becomes law, court
orders will no longer be required for electronic surveillance of
ordinary Americans. Because wiretaps would be secret, their targets
would never find out they were monitored, even if they were deemed to
be innocent. It would be up to the American people to trust the
government's claims that it is only monitoring terrorists. In short,
it would be an invitation to wholesale abuses of power and to the
return of the politically motivated domestic spying that was
commonplace in the 1960s and 1970s.
http://www.mercurynews.com/mld/mercurynews/news/opinion/15178716.htm

QUICKLY

MEDIA FIRMS COUNTED AS SMALL BUSINESSES
[SOURCE: Associated Press, AUTHOR: Frank Bass]
Ah, here's the disconnect in the whole media ownership debate:
activists have raised their voices warning that media companies are
getting too big and the US government still classifies the same
companies as small businesses. Last year, the government counted the
Associated Press, The New York Times Co., USA Today International
Corp., Bloomberg, and even the Public Broadcasting Service as small
businesses for contracting purposes and, therefore, inflating the
Bush administration's record of help to small companies. The media
giants join other corporate icons like Wal-Mart and Home Depot that
congressional investigators identified last week as companies listed
as small businesses by the White House. The companies say the
government erroneously gave them that designation and they did not
portray themselves as small businesses to win the contracts. The
government is required to spend 23 percent of roughly $314 billion in
contracts with small businesses. Last month, the Small Business
Administration claimed the government more than met that goal in
2005. But an investigation by House Democrats, found the number was
closer to 22 percent because about $12 billion in contracts to big
companies were mistakenly cited as going to small businesses. The
media companies were not mentioned in the congressional report last
week but were included in a database of small businesses the
investigators received as part of their inquiry.
http://news.yahoo.com/s/ap/20060801/ap_on_go_co/not_so_small_business

AT&T FOUNDATION GIVES $1 MILLION FOR TECHNOLOGY ACCESS
[SOURCE: San Antonio Business Journal]
The AT&T Foundation has announced a $1 million grant to provide new
technology resources for people with all types of disabilities. The
grant to the Community Technology Centers' Network (CTCNet) is part
of a three-year AccessAll initiative by AT&T to provide technology
access to underserved communities. It will be used to fund training
for community technology center staff on universal design and
assistive technology that can be used to accommodate multiple
learning styles and abilities. CTCNet will make the AT&T funds
available to regional centers through a competitive application process.
http://sanantonio.bizjournals.com/sanantonio/stories/2006/07/31/daily5.html

NFL ASKS FCC TO REINSTATE TIME WARNER CARRIAGE
[SOURCE: Broadcasting&Cable, AUTHOR: Ben Grossman]
The National Football League called the next play in its ongoing
battle with Time Warner Cable, filing a petition with the FCC to
direct Time Warner to restore the NFL Network to the basic cable
package on the Adelphia systems that Time Warner took over August 1.
http://www.broadcastingcable.com/article/CA6358476.html?display=Breaking...
* NFL Network Seeks FCC Intervention
http://www.multichannel.com/article/CA6358452.html?display=Breaking+News
--------------------------------------------------------------
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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