July 2007

The Senate Commerce Committee meets today to=20
consider 1) Broadband Data Improvement Act and 2)=20
Protecting Children from Indecent Programming Act=20
(see story below) among other bills. For this and=20
other upcoming media policy events, see=20
http://www.benton.org/?q=3Devent/2007/07/19/month/all/all

EMERGENCY COMMUNICATIONS
U.S. offers $968 million for disaster technology

BROADCASTING
Media Expert Predicts Digital 'Train Wreck'

INTERNET/BROADBAND
Shooting the Messenger
Beyond the Beltway: Net Neutrality Support is Stronger Than Ever
Broadband and Household Income Go Hand-In-Hand
Towns left scrambling for touch of broadband

CABLE
Coalition Blasts FCC for Unlawful, Arbitrary and=20
Capricious Ruling on Video Franchising

SPECTRUM POLICY
Four Open Access Principles for the 700 MHz Auction
AT&T backs proposed rules for spectrum auctions
The Art of Spectrum Lobbying
Spectrum Policy for the Emerging Ultrabroadband World

CHILDREN & MEDIA
Congress seeks last word on broadcast obscenity
Markey Responds to 11 Pledges Limiting Junk Food Ads to Kids

OWNERSHIP
Murdoch=92s Arrival Worries Journal Employees

QUICKLY -- Net radio negotiations hit snag over=20
DRM; Congress to Examine Google-DoubleClick Deal;=20
The Debates' New Face; U.S. seeks talks with China on film, music regulatio=
ns

EMERGENCY COMMUNICATIONS

US OFFERS $968 MILLION FOR DISASTER TECHNOLOGY
[SOURCE: Reuters]
The government is offering $968 million in grants=20
to help state and local public safety agencies=20
buy sophisticated radios and technology for=20
communications during disasters. The program aims=20
to equip police and fire departments and other=20
emergency agencies in all 50 states with more=20
dependable and interoperable communications.=20
Funding for the grants will come from expected=20
proceeds of the Federal Communications=20
Commission's 700 megahertz spectrum auction=20
scheduled for later this year. Technology=20
eligible for grants includes voice or radio=20
Internet protocols, broadband video applications,=20
mobile public safety networks, multi-band=20
software designed radios and satellite communication systems.
http://www.reuters.com/article/technologyNews/idUSN1833586420070718
* Announcement from Secs of Commerce and Homeland Security
http://www.ntia.doc.gov/ntiahome/press/2007/PSIC_071707.pdf
* New York City Expects Federal Funds to Improve Emergency Radio Use
http://www.nytimes.com/2007/07/19/nyregion/19radios.html

BROADCASTING

MEDIA EXPERT PREDICTS DIGITAL 'TRAIN WRECK'
[SOURCE: Technology Daily, AUTHOR: David Hatch]
Media Access Project President Andrew Schwartzman=20
warned of a coming "train wreck" as television=20
broadcasters shift to digital signals while=20
relying on a poorly-funded outreach effort to=20
consumers. "This really calls for a [sweeping]=20
governmental program. The public isn't going to=20
pay a lot of attention to these voluntary=20
efforts," he told a policy conference sponsored=20
by the Minority Media and Telecommunications=20
Council. The blunt assessment followed rosier=20
predictions by a Commerce Department official and=20
the heads of the major broadcast, electronics and=20
cable associations. Schwartzman questioned the=20
public-service campaigns being planned to tell=20
consumers that older TV sets won't work without=20
converter boxes after the digital transition. He=20
said they won't reach those who need assistance=20
the most, including non-English speakers, seniors=20
and the poor. "I really fear for it," he said.=20
"The people who are going to be hurt are the=20
people at the bottom." Another concern is that a=20
National Telecommunications and Information=20
Administration coupon program to subsidize the=20
boxes will fall short. The vouchers are designed=20
to help analog-dependent TV viewers purchase=20
devices that will keep their sets functioning=20
after the Feb. 17, 2009, switchover. Millions of=20
coupons need to be at bodegas, laundromats and=20
other neighborhood venues, not just electronics=20
stores, Schwartzman said. He also warned that the=20
transition would be undermined without mandatory=20
cable carriage of ancillary digital signals and=20
by broadcaster opposition to freeing unused TV=20
spectrum for unlicensed devices.
http://www.njtelecomupdate.com/2007/07/media_expert_predicts_digital.html

INTERNET/BROADBAND

SHOOTING THE MESSENGER
[SOURCE: Free Press, AUTHOR: S Derek Turner]
A new report dispels the many myths manufactured=20
by the telecommunications industry to excuse=20
America's poor broadband performance compared to=20
the rest of the world. "Every major international=20
ranking shows the United States falling behind=20
other world leaders in deployment and adoption of=20
affordable broadband services," said S. Derek=20
Turner, research director of Free Press and=20
author of the study. "No amount of industry spin=20
can excuse the problems caused by lack of=20
broadband competition, or the irreparable harm to=20
our economy if we fail to address the mounting=20
crisis." The latest data from the Organization=20
for Economic Co-operation and Development (OECD)=20
ranks the U.S. 15th in the world in broad=20
penetration per capita, down from fourth in 2001=20
and 12th just six months ago. But instead of=20
addressing America's digital decline, federal=20
policymakers and industry representatives have=20
attacked the OECD's methodology. Free Press found=20
that the critiques leveled at the OECD fall apart=20
under scrutiny. Shooting the Messenger separates=20
fact from fiction, exposing the truth behind 10=20
myths used to excuse the shortcomings of the U.S.=20
broadband market. Among the findings of the new=20
report: 1) No matter how one measures broadband=20
penetration -- whether it's per capita or per=20
household -- the United States still ranks 15th=20
in among the 30 OECD nations. 2) There is=20
absolutely no correlation between a country's=20
population density and its broadband penetration.=20
The geographical size of the United States=20
doesn't explain the poor state of broadband=20
adoption and availability. 3) Critics claim the=20
OECD measures are flawed because they don't count=20
mobile wireless. But a cell phone is no=20
substitute for a true broadband connection -- and=20
if these phones were counted, the United States=20
would fare even worse in the world rankings. 4)=20
While U.S. consumers have at best two choices for=20
a wired broadband connection, in Europe consumers=20
have many choices -- sometimes dozens -- among=20
providers on just a single platform. 5) Many of=20
the countries ahead of the United States in the=20
world rankings still have higher levels of=20
absolute broadband growth. And the U.S. broadband=20
penetration growth rate during the second half of=20
last year was the second lowest in the entire OECD.
http://www.freepress.net/docs/shooting_the_messenger.pdf

BEYOND THE BELTWAY: NET NEUTRALITY SUPPORT IS STRONGER THAN EVER
[SOURCE: Huffington Post, AUTHOR: Timothy Karr]
[Commentary] The results are in at the Federal=20
Communications Commission. Tens of thousands of=20
public comments supporting Net Neutrality flooded=20
the agency before they closed their official=20
inquiry on Monday. In a landslide of public=20
support, well over 95 percent of the comments=20
called for rules that prohibit phone and cable=20
companies from seeing through their plans to=20
become the new gatekeepers to the Internet --=20
deciding which Web sites and services users get=20
to download before others. Internet users from=20
all 435 congressional districts urged the FCC to=20
protect our Internet freedom. Net Neutrality=20
supporters include a full range of small business=20
owners, students, churchgoers, bloggers,=20
political candidates, educators and activists who=20
took the time to tell the agency that protecting=20
Net Neutrality is fundamental to their family life, work and interests.
http://www.huffingtonpost.com/timothy-karr/beyond-the-beltway-net-n_b_56...
.html
* Public Speaks Out On Net Neutrality
http://www.webpronews.com/topnews/2007/07/18/public-speaks-out-on-net-ne...
ality

BROADBAND AND HOUSEHOLD INCOME GO HAND-IN-HAND
[SOURCE: Center for Media Research, AUTHOR: Jack Loechner]
New consumer research, Broadband Access and=20
Service in the Home 2007, from Leichtman Research=20
Group, finds that 53% of all US households now=20
subscribe to a broadband high-speed Internet=20
service at home. Broadband services now account=20
for about 72% of all home Internet subscriptions,=20
compared to 60% last year. While broadband=20
subscriptions continued to increase across the=20
country in the past year, broadband penetration=20
remains strongly correlated with household=20
income: 68% of all households with annual incomes=20
over $50,000 now get broadband vs. 59% last=20
year; 39% of all households with annual incomes=20
under $50,000 get broadband vs. 27% last year.
http://blogs.mediapost.com/research_brief/?p=3D1481

TOWNS LEFT SCRAMBLING FOR TOUCH OF BROADBAND
[SOURCE: Boston Globe, AUTHOR: Carolyn Y. Johnson]
In a high-tech state known for its knowledge=20
economy, residents of Goshen and 31 other=20
Massachusetts towns are living in a=20
telecommunications Third World, relying on the=20
equivalent of a horse and buggy to ride the=20
information superhighway. State officials have=20
yet to develop a comprehensive policy for fixing=20
the telecom time warp. But this fall, three=20
Western Massachusetts towns will participate in=20
an experiment to test wireless networks in rural settings.
http://www.boston.com/business/technology/articles/2007/07/18/towns_left...
rambling_for_touch_of_broadband/

CABLE

COALITION BLASTS FCC UNLAWFUL, ARBITRARY AND=20
CAPRICIOUS RULING ON VIDEO FRANCHISING
[SOURCE: Press Release]
A coalition of local government and non-profit=20
groups has asked the United States Court of=20
Appeals for the Sixth Circuit to overturn the=20
video franchising Order issued by the Federal=20
Communications Commission (FCC) in March 2007.=20
The groups argue that the FCC had no statutory=20
authority, acted in an arbitrary and capricious=20
manner, and violated public notice requirements=20
when it issued its Order. "The FCC overrules=20
Congressional intent, sets aside court=20
jurisdiction, and wants us to ignore community=20
needs," said Donald J. Borut, executive director=20
of the National League of Cities (NLC), one of=20
the organizations filing suit. "The FCC's action=20
is purely a contrived and transparent attempt to=20
legislate." The Order strips local governments of=20
their authority to protect the public health,=20
education, welfare and safety of local residents,=20
in violation of the Cable Act. The purpose of the=20
Cable Act is to ensure the availability of cable=20
services in the community and that those services=20
serve the public interest. Franchising protects=20
public and private property from abuse, and=20
provides for community channels and public safety=20
networks. Congress recognizes the property rights=20
involved and the importance of these media=20
outlets within our communities. As a result,=20
Congress has repeatedly reinforced that local=20
governments are best suited to determine these=20
needs and interests -- not the FCC.
http://www.broadcastnewsroom.com/articles/viewarticle.jsp?id=3D163351

SPECTRUM POLICY

FOUR OPEN ACCESS PRINCIPLES FOR THE 700 MHZ AUCTION
[SOURCE: Public Knowledge]
[Commentary] Public Knowledge and the Public=20
Interest Spectrum Coalition joined Google, Skype,=20
Frontline Wireless, and other technology sector=20
organizations in filing a letter to FCC Chairman=20
Kevin Martin. This letter presents a united front=20
among advocates for open access: public interest=20
groups and high tech companies all agree that=20
open access is an absolute must for the upcoming=20
700 MHz auction. The four opens of successful=20
open access are: 1) Open Devices: An open devices=20
provision would require the licensee to allow any=20
device to attach to the network, so long as that=20
device does not harm the network. 2) Open=20
Applications: The second =93open principle=94 would=20
allow consumers to access the same applications=20
if they move their devices from one network to=20
another. 3) Open Services: Here, the licensee=20
would be required to make every important network=20
interfaces available to wholesale customers and=20
third-party application providers. 4) Open=20
Networks: Requiring the licensee to make the=20
network available to other service providers on a=20
non-discriminatory basis at wholesale prices=20
remains the only way to ensure competition and new wireless service provide=
rs.
http://www.publicknowledge.org/node/1104

AT&T BACKS PROPOSED RULES FOR SPECTRUM AUCTIONS
[SOURCE: USAToday, AUTHOR: Leslie Cauley]
AT&T has endorsed Federal Communications=20
Commission Chairman Kevin Martin's proposed rules=20
for the upcoming 700-megahertz spectrum auctions,=20
which would allow unprecedented choice for=20
wireless consumers. "We think Chairman Martin's=20
plan is a creative compromise that balances the=20
interests of companies and consumers," said Jim=20
Cicconi, AT&T's senior executive vice president=20
of public policy. Martin's proposed rules, which=20
would apply to all national licenses except one=20
reserved for public safety, would require bidders=20
to let consumers use any device they desire,=20
loaded with any software they wish. That is=20
counter to the U.S. wireless industry habit of=20
limiting consumers to devices and applications=20
they sell. AT&T's endorsement is a shot in the=20
arm for Martin, who has come under a torrent of=20
criticism from Google, Yahoo and others. They've=20
been pushing for FCC rules that would go much=20
further in giving consumers choice of devices,=20
software and more. In the past few days, a number=20
of news reports have indicated AT&T was=20
contemplating suing the FCC over Martin's plan.
http://www.usatoday.com/printedition/money/20070719/att19.art.htm

THE ART OF SPECTRUM LOBBYING
[SOURCE: New America Foundation, AUTHOR: J.H. Snider]
This paper deals with what might be considered=20
the third rail of spectrum policy: the rotten,=20
special interest politics that has driven=20
lawmakers to give away the public=92s airwaves to=20
private interests without public compensation. In=20
the vast stream of government reports seeking to=20
reform spectrum policy since 1993, one looks in=20
vain for more than a token acknowledgement, let=20
alone a serious and sustained discussion, of this=20
giveaway. Like other politically embarrassing=20
issues, it is an issue that congressional leaders=20
and their proxies=97the FCC, GAO, CBO, NTIA, and=20
others=97would prefer not to talk about. This, of=20
course, suits the beneficiaries of the giveaway=20
and their army of lobbyists and analysts just=20
fine. For that very reason alone, however, it is=20
an issue that desperately needs a public airing.
http://www.newamerica.net/publications/policy/art_spectrum_lobbying

SPECTRUM POLICY FOR THE EMERGING ULTRABROADBAND WORLD
[SOURCE: New America Foundation, AUTHOR: J.H. Snider]
Imagine a world with finite spectrum but infinite=20
demand for wireless bandwidth. In such a world,=20
which we shall call the ?wireless ultrabroadband=20
world, what would the wireless telecommunications=20
architecture look like? And what type of property=20
rights regime would accompany it? No=20
telecommunications architecture following known=20
laws of nature could provide infinite wireless=20
bandwidth. But this paper argues that the=20
architecture that would get closest would be one=20
with very short wireless end user links attached=20
to a wired backbone. It further argues that in=20
such a world the most efficient property rights=20
regime for spectrum management would be one that=20
bundles rights to use spectrum with rights of=20
possession to tangible property. Contrast this=20
world to the wireless narrowband world in which=20
we currently live in, where demand for wireless=20
bandwidth is relatively modest, wireless links=20
correspondingly large, and the most efficient=20
property rights regime for spectrum management is=20
predominantly one that unbundles spectrum and tangible property rights.
http://www.newamerica.net/publications/policy/spectrum_policy_emerging_u...
abroadband_world

CHILDREN & MEDIA

CONGRESS SEEKS LAST WORD ON BROADCAST OBSCENITY
[SOURCE: Los Angeles Times, AUTHOR: Jim Puzzanghera]
The battle over dirty words shifts back to=20
Congress today. A Senate committee is expected to=20
support legislation that would authorize=20
regulators to enforce a nearly zero-tolerance=20
policy on the broadcast of certain expletives=20
that was struck down last month. The bill would=20
give the Federal Communications Commission=20
explicit authority to make "a single word or=20
image" indecent. The FCC ruled in March 2006 that=20
almost any use of some expletives was indecent,=20
even in live, unscripted instances. Broadcasters=20
sued, saying the FCC had contradicted a long=20
history of exempting so-called fleeting uses of=20
the words and were infringing on their 1st=20
Amendment rights. The U.S. 2nd Circuit Court of=20
Appeals overturned the policy in June, ruling=20
narrowly that the FCC had failed to justify=20
it. Sen. John D. Rockefeller IV (D-WV), who has=20
been outspoken about cleaning up the airwaves,=20
wrote the bill to overcome the court ruling.
http://www.latimes.com/business/printedition/la-fi-indecency19jul19,1,14...
79.story?coll=3Dla-headlines-pe-business
(requires registration)

MARKEY RESPONDS TO 11 PLEDGES LIMITING JUNK FOOD ADS TO KIDS
[SOURCE: Rep Ed Markey (D-MA)]
Representative Edward J. Markey (D-MA), Chairman=20
of the House Subcommittee on Telecommunications=20
and the Internet, responded to pledges made by 11=20
food marketers concerning television=20
advertisements directed at children announced at=20
a Federal Trade Commission workshop. "voluntary=20
commitments made by the food and beverage=20
industries are an important step forward. I=20
believe they will contribute positively to=20
efforts to address our nation=92s childhood obesity=20
epidemic.... However, the big unanswered question=20
at this point is how stringent each company=92s=20
nutritional guidelines are. I plan to reserve=20
judgment until these guidelines can be carefully=20
reviewed.... Also, while these commitments=20
represent an important step forward, it is=20
equally important that they are faithfully implemented and enforced."
http://markey.house.gov/index.php?option=3Dcom_content&task=3Dview&id=3D...
6&Itemid=3D141
* FCC Commissioner Tate:
"Congratulations to the eleven members of the=20
Children's Food and Beverage Advertising=20
Initiative for the pledges they have made=20
today. This is an admirable step in the right=20
direction. Hopefully, others, including members=20
of the Task Force on Media and Childhood Obesity,=20
will follow their example and take even further=20
measures to positively impact childhood obesity."
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-275342A1.doc
* Some junk-food ads cut from kids' diets
http://www.latimes.com/business/printedition/la-fi-foodads19jul19,1,3471...
.story?coll=3Dla-headlines-pe-business

OWNERSHIP

MURDOCH'S ARRIVAL WORRIES JOURNAL EMPLOYEES
[SOURCE: New York Times, AUTHOR: Richard Perez-Pena]
For employees at Dow Jones, the 11 weeks since=20
they learned of the Murdoch offer have been a=20
wrenching time, raising the prospect of=20
fundamental changes at an organization that had=20
already had its fill of big changes in the last=20
couple of years. So a possible takeover by the=20
News Corporation =97 the deal is now in the hands=20
of the Bancroft family after the offer received=20
board approval =97 has placed an unusual strain on=20
the company and its employees. Tensions have=20
risen between The Journal=92s newsroom and=20
management. Journalists are also facing two=20
futures they never expected when they signed on=20
to jobs they saw more as a mission, not a=20
business =97 the uncertainty of what Mr. Murdoch=20
would do as an owner, or the uncertainty of a=20
suddenly harsh advertising climate that could lead to deep job cuts.
http://www.nytimes.com/2007/07/19/business/media/19journal.html
(requires registration)
* For Bancrofts, Decision Time Is Near on Sale of Dow Jones
http://online.wsj.com/article/SB118480226761270718.html?mod=3Dtodays_us_...
e_one
(requires subscription)

QUICKLY

NET RADIO NEGOTIATIONS HIT SNAG OVER DRM
[SOURCE: C-Net|News.com, AUTHOR: Anne Broache]
A new spat appears to be brewing between the=20
Digital Media Association (DiMA), a lobby group=20
representing large Webcasters like Pandora,=20
Yahoo, RealNetworks and AOL, and SoundExchange,=20
the group that collects and lobbied for the new=20
payments on behalf of musicians and record=20
labels. The issue? Whether Webcasters should be=20
required to cloak their streams in technologies=20
designed to prevent "streamripping" as part of an=20
agreement to cap the administrative fees they owe to SoundExchange.
http://news.com.com/8301-10784_3-9746681-7.html

CONGRESS TO EXAMINE GOOGLE-DOUBLECLICK DEAL
[SOURCE: New York Times, AUTHOR: Miguel Helft]
Google executives are expected to be called to=20
testify before House and Senate subcommittees=20
about the company=92s planned $3.1 billion=20
acquisition of DoubleClick, a deal that is=20
already facing close scrutiny from federal=20
antitrust regulators. Within days of the deal=92s=20
announcement in April, companies including=20
Microsoft, AT&T and some in the advertising=20
industry, began to complain that the merger of=20
Google and DoubleClick would limit competition in=20
the online advertising market. Privacy groups,=20
meanwhile, voiced concerns about the deal=92s=20
impact on consumer privacy. In May, the Federal=20
Trade Commission began an investigation into the=20
proposed merger. Now, a subcommittee of the=20
Senate Judiciary Committee is planning to call a=20
hearing to explore the antitrust and privacy=20
issues raised not only by the Google deal but=20
also by recent consolidation in the online=20
advertising market, according to a person=20
familiar with the planned hearing. Bobby L. Rush=20
(D-IL), Chairman of the House Commerce Committee=20
subcommittee on consumer protection, said he had=20
opened an investigation into the privacy and=20
competition issues raised by the=20
Google-DoubleClick deal and also planned to call a hearing.
http://www.nytimes.com/2007/07/19/technology/19google.html
(requires registration)
* Google Officials to Testify On DoubleClick Deal Impact
http://online.wsj.com/article/SB118479324410570734.html?mod=3Dtodays_us_...
e_one
* Web-ocrats Down Under
http://online.wsj.com/article/SB118461786796567890.html?mod=3Dtodays_us_...
nion

THE DEBATES' NEW FACE
[SOURCE: Washington Post, AUTHOR: Jose Antonio Vargas]
CNN is sorting through more than 1,300 video=20
questions uploaded to YouTube and intended for=20
presidential candidates. About two dozen or so=20
will be selected and poised to Democrats in=20
Charleston on Monday. No one quite knows how the=20
debate will work -- some candidates don't even=20
know how to prepare for it. But the fact that it=20
is happening at all is a testament to the=20
increasing role of online video in politics and=20
the emergence of a 2 1/2 -year-old Web site=20
better known for its irreverent, sometimes crude,=20
content than as a factor in the 2008 campaign.
http://www.washingtonpost.com/wp-dyn/content/article/2007/07/18/AR200707...
2528.html
(requires registration)

US SEEKS TALKS WITH CHINA ON FILM, MUSIC REGULATIONS
[SOURCE: Associated Press]
The U.S. is seeking consultations with China over=20
rules on music downloading and cinema rights that=20
appear to discriminate against foreign sound=20
recordings and films, a U.S. trade official said=20
Wednesday. Hollywood studios and U.S. Internet=20
music providers such as Apple Inc.'s iTunes store=20
could be among the groups that suffer from "less=20
favorable distribution opportunities" for=20
imported films and foreign suppliers of music=20
recordings in China, which the U.S. cited in a=20
World Trade Organization request earlier this week.
http://www.latimes.com/business/printedition/la-fi-china19jul19,1,466834...
tory?coll=3Dla-headlines-pe-business
(requires registration)
--------------------------------------------------------------
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.
--------------------------------------------------------------