November 2007

The FCC holds a public forum on the license=20
renewal of WWOR in New Jersey today (see story=20
below) For upcoming media policy events, see=20
http://www.benton.org/?q=3Devent The FCC's meeting=20
ran late last night. We'll have a full recap=20
posted later at http://www.benton.org/?q=3Dheadlines

MEDIA OWNERSHIP
FCC Drops Vote on Minority Ownership
Study Says Minority Media Ownership Down
Senate Commerce Committee Tees Up FCC-Blocking Bill
Martin's Tunnel Vision for Big Media
Tribune Rocked by Zell Jitters
Sirius, XM radio eager for ruling on merger plans

CABLE
Cable Industry Wins Compromise on FCC Plans
Martin Proposes Seeking More Data on 70/70 Test

BROADCASTING
New Reporting Regs for Broadcasters
Disclosure important, but PIOs needed, too
Fox Makes Case For WWOR

TELECOM
Verizon Wireless First To Adopt Open-Network Policy
Intelligence bill may hinge on immunity for telecoms
Mexico to conduct antitrust probe of telephone industry

UNIVERSAL BROADBAND
U.S. not up to speed on broadband
Federal Board Recommends Broadband Fund
Benton Applauds Joint Board Decision on Broadband
Cap on subsidies criticized
Telstra looking for a quickie deal over broadband
UK Minister leads push for faster broadband

QUICKLY -- Kevin Martin=92s Pro-Market FCC; Survey:=20
A quarter of U.S. workers telecommute regularly

MEDIA OWNERSHIP

FCC DROPS VOTE ON MINORITY MEDIA OWNERSHIP
[SOURCE: Federal Communications Commission]
On Tuesday morning, the FCC announced it would=20
not consider a Report and Order and Third Further=20
Notice of Proposed Rulemaking concerning=20
initiatives designed to increase participation in=20
the broadcasting industry by new entrants and=20
small businesses, including minority- and women-owned businesses.
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-278396A1.doc
* Copps: "I'm pleased that we have avoided a=20
premature vote on minority and female=20
ownership. It's not that this subject doesn't=20
need our urgent attention. It does.... But while=20
we need to act quickly, we must not act=20
recklessly.... we subsequently received a draft=20
Order addressing these complex issues with only=20
three working days to meet with interested=20
parties, it started to feel more and more like-if=20
you'll pardon the expression-a whitewash."
http://hraunfoss.fcc.gov/edocs_public/attachmatch//DOC-278447A1.doc
* Adelstein: "I'm pleased that the Commission has=20
backed off its fig leaf attempt to address=20
minority and female ownership. It was an=20
obvious effort to provide cover for more media=20
consolidation, which would only have take media=20
outlets further out of the reach of women and=20
minorities. It was designed to check the box and=20
move on. It's high time we create an independent,=20
bipartisan panel that will look at these issues=20
in a comprehensive and substantive=20
fashion. Media sharecropping is no substitute=20
for media ownership. Given the crisis we face in=20
ownership, we need real actions, not just token=20
gestures. We need to heed the many calls from=20
Congress and diverse voices across America who=20
are demanding we act to improve women and=20
minority ownership before, not after, we vote on media ownership rules."
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-278448A1.doc
* Copps Praises Minority Ownership Extension
http://www.tvnewsday.com/articles/2007/11/27/daily.13/
* FCC Drops Vote on Diversity Initiatives
http://www.broadcastingcable.com/article/CA6505320.html

STUDY SAYS MINORITY MEDIA OWNERSHIP DOWN
[SOURCE: tvnewsday]
Free Press today released Out of the Picture=20
2007, an update of the group=92s Out of the Picture=20
study completed last year that assessed female=20
and minority ownership of commercial broadcast TV=20
stations. The new data, Free Press says, suggests=20
that the future of minority TV station ownership=20
is in jeopardy. Among the new findings: 1) From=20
October 2006 to October 2007, the number of=20
minority-owned commercial TV stations decreased=20
by 8.5 percent. 2) African-American TV station=20
ownership dropped by 60 percent=97as the total=20
number of black-owned TV stations fell from 19 to=20
8 in just a single year. 3) People of color now=20
own just five of the 845 "big four"=20
network-affiliated stations=97a 62percent decline=20
from October 2006. Much of the decline, Free=20
Press said, can be attributed to the bankruptcy=20
and subsequent change in ownership of a single=20
company -- Granite Broadcasting, formerly the=20
country's largest minority-owned broadcast=20
television company. Free Press went on to blast=20
the FCC, saying that =93despite the worsening=20
crisis of minority ownership, the FCC has yet to=20
even conduct an accurate count of minority-owned=20
stations. The most recent FCC study on this issue=20
failed to identify 69 percent of minority TV=20
station owners and 75 percent of female owners.=94
http://www.tvnewsday.com/articles/2007/11/27/daily.12/
* Minority Media Ownership Drops as FCC Considers Harmful New Rules
"Minority television ownership is in such a=20
precarious state that the loss of a single=20
minority-owned company results in a disastrous=20
decline,=94 said S. Derek Turner, research director=20
of Free Press and lead author of Out of the=20
Picture 2007. =93Permitting any more consolidation=20
will only further diminish the number of=20
minority-owned stations. The best, most effective=20
way to boost minority and female ownership is by=20
rolling back consolidation. Piecemeal policies=20
will have limited impact on the level of minority=20
ownership in the face of unchecked media concentration."
http://www.freepress.net/press/release.php?id=3D304
* Out of the Picture 2007
http://www.freepress.net/docs/otp2007.pdf

SENATE COMMERCE COMMITTEE TEES UP FCC-BLOCKING BILL
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
The Senate Commerce Committee set Dec. 4 as the=20
date to mark up (amend, debate and perhaps vote=20
on) the Media Ownership Act of 2007, a bill that=20
would effectively block Federal Communications=20
Commission chairman Kevin Martin from holding a=20
Dec. 18 vote on relaxing the newspaper-broadcast=20
cross-ownership ban. The committee will also hear=20
from the full complement of commissioners at a=20
Dec. 13 hearing on "current proceedings involving=20
media and telecommunications policy." Both=20
actions are attempts to put the breaks on=20
Martin's effort to wrap up a media-ownership=20
review now a year-and-a-half in the making. The=20
Media Ownership Act would require the FCC,=20
generally, to publish any proposed rule changes=20
in the Federal Register 90 days prior to a vote,=20
giving the public 60 days to comment and another=20
30 days for reply comments. If the FCC does not=20
provide the requisite notice and comment periods=20
for proposed rule changes, the bill said, the rule changes will be voided.
http://www.broadcastingcable.com/article/CA6505728.html?rssid=3D193
* Senate Commerce Committee Announces December 4 Markup
http://commerce.senate.gov/public/index.cfm?FuseAction=3DPressReleases.D...
il&PressRelease_id=3D249004&Month=3D11&Year=3D2007
* FCC Commissioners to Testify at Commerce Committee Oversight Hearing
http://commerce.senate.gov/public/index.cfm?FuseAction=3DPressReleases.D...
il&PressRelease_id=3D249005&Month=3D11&Year=3D2007

MARTIN'S TUNNEL VISION FOR BIG MEDIA
[SOURCE: Huffington Post, AUTHOR: Timothy Karr]
[Commentary] Federal Communications Commission=20
Chairman Kevin Martin will do whatever it takes=20
to get it done his way. Unfortunately, Martin's=20
way has nothing to do with his sworn duty to=20
serve the public -- or pay attention to the=20
facts. His way? Damn the Public. Full Speed=20
Ahead. Damn the Evidence. Full Speed Ahead. Damn=20
Local Control. Full Speed Ahead. Damn Diversity.=20
Full Speed Ahead. No matter what your political=20
beliefs, bringing more diversity of ownership and=20
local control to our media would help boost our=20
ability to engage in the issues of our time. That=20
should seem obvious to everyone. The real=20
challenge is to make public officials like Kevin=20
Martin more accountable to the Americans he's supposed to serve.
http://www.huffingtonpost.com/timothy-karr/martins-tunnel-vision-fo_b_74...
.html

TRIBUNE ROCKED BY ZELL JITTERS
[SOURCE: New York Post, AUTHOR: Janet Whitman]
Tribune Co.'s shares sank yesterday on renewed=20
jitters that the media company's plan to go=20
private with backing from real-estate mogul Sam=20
Zell is in jeopardy. Investors are fretting that=20
the continued slump in Tribune's revenue will=20
prompt Zell to try to rejigger the buyout's terms=20
or pull out. Another worry is that Tribune won't=20
get renewed waivers from the Federal=20
Communications Commission that allow the company=20
to operate newspapers and TV stations in the same=20
market. Renewed outcry over plans to loosen=20
regulations on media ownership have resulted in a=20
delay. If the company doesn't close the=20
transaction by the end of the year it could face=20
huge tax consequences that could derail the buyout all together.
http://www.nypost.com/seven/11282007/business/tribune_rocked_by_zell_jit...
s_567156.htm

SIRIUS, XM RADIO EAGER FOR RULING ON MERGER PLANS
[SOURCE: USAToday, AUTHOR: David Lieberman]
Friendly satellite radio rivals Sirius and XM=20
enter the final month of 2007 with reasons to be=20
wary. They have to worry whether the softening=20
economy will hurt new car sales =97 the largest=20
generator of new satellite radio subscribers.=20
Also up in the air is how many holiday shoppers=20
put portable satellite radios on their gift=20
lists. Several analysts were disappointed by=20
non-car radio sales for Sirius and XM in the=20
third quarter. That led Goldman Sachs analyst=20
Mark Wienkes to write that "The retail satellite=20
radio market is on life support." But more than=20
anything, the companies are anxiously waiting to=20
see whether federal officials will OK Sirius'=20
agreement last February to offer stock currently=20
worth about $5 billion for XM. The Justice=20
Department could say any day whether it will=20
challenge the deal on antitrust grounds. The=20
Federal Communications Commission is expected to=20
follow with a vote on whether it's in the public=20
interest to let Sirius take control of XM's=20
licenses to use the public airwaves. Sirius and=20
XM say they expect federal approvals in time for=20
their deal, billed as a merger of equals, to=20
close by year's end. Analysts aren't so sure.
http://www.usatoday.com/printedition/money/20071128/satradio.art.htm

CABLE

CABLE INDUSTRY WINS COMPROMISE ON FCC PLANS
[SOURCE: New York Times, AUTHOR: Stephen Labaton]
In the face of a lobbying blitzkrieg by the cable=20
television industry, the Federal Communications=20
Commission drastically scaled back Tuesday=20
evening a proposal by the agency=92s chairman to=20
more tightly regulate the industry. The=20
compromise was a significant, though not total,=20
victory for the cable industry, whose executives=20
and lobbyists had worked to erode support on the=20
commission for the agenda of the chairman, Kevin=20
J. Martin. Among other things, the commission=20
agreed to postpone for months the decision=20
Chairman Martin had hoped would be made on=20
Tuesday, over whether the cable television=20
industry had grown so dominant that the agency=92s=20
regulatory authority over it should be=20
expanded. But Chairman Martin and some consumer=20
groups insisted that the decisions by the=20
commission could nonetheless help to make=20
programming more diverse and ultimately reduce=20
cable costs. One of the new rules adopted on=20
Tuesday, for instance, would make it=20
significantly less expensive for independent=20
programmers to lease channels. At an acrimonious=20
two-hour hearing that ended shortly before=20
midnight, Commissioners Jonathan S. Adelstein=20
Robert M. McDowell criticized the process leading=20
up to the votes. They suggested that Chairman=20
Martin had relied on misleading data about the=20
cable industry=92s reach, and suppressed more=20
reliable data already in the commission=92s hands,=20
to justify his regulatory agenda. Chairman Martin=20
disputed them, saying that the FCC=92s own data was=20
not reliable, and that the most reliable data=20
available showed that the industry had grown so=20
large that greater regulation was justified. He said no data was suppressed.
http://www.nytimes.com/2007/11/28/business/media/28cable.html?hp
(requires registration)
* Cable Dodges Tighter FCC Control
http://online.wsj.com/article/SB119618440119505403.html?mod=3Dtodays_us_...
e_one
(requires subscription)
* FCC Chair Forced to Compromise on Cable Regulation
http://www.washingtonpost.com/wp-dyn/content/article/2007/11/27/AR200711...
1191.html
* FCC retreats on cable regulation plan
http://www.usatoday.com/printedition/money/20071128/b_fcc28.art.htm
* Cable regulation bid delayed
http://www.latimes.com/business/printedition/la-fi-fcc28nov28,1,2480316....
ry?coll=3Dla-headlines-pe-business
* FCC wants more data for cable TV report (Associated Press)
http://www.in-forum.com/ap/index.cfm?page=3Dview&id=3DD8T6FM4O2
* FCC Concludes Data Does Not Establish 70/70 Finding
http://www.broadcastingcable.com/article/CA6505784.html?rssid=3D193
* Martin=92s Cable Agenda Hits A Wall
http://www.multichannel.com/article/CA6505787.html?rssid=3D196

MARTIN PROPOSES SEEKING MORE DATA ON 70/70 TEST
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
Federal Communications Commission Chairman Kevin=20
Martin proposed modifying compelling the cable=20
industry to quickly come up with data to help the=20
FCC determine whether or not it needs to be more=20
heavily regulated. The news came in an=20
announcement Tuesday from Chairman Martin to=20
reporters waiting for the start of the delayed=20
FCC meeting, at which the Commission planned to=20
vote on the report. Martin said a majority of=20
commissioners had expressed interest in seeking=20
additional data from the cable industry in a=20
"short time frame." He had been getting push back=20
from his own Republican commissioners on that=20
70/70 conclusion, which had been based on data=20
from Warren Communications that found that cable=20
subscribership had passed the 70% figure that=20
could trigger regulation. Chairman Martin said=20
the FCC planned to still use the Warren data, but=20
it would supplement it with other industry data=20
if the proposal were adopted. Warren has said=20
that its data are good as far as they go but=20
incomplete because some operators did not respond to its survey.
http://www.broadcastingcable.com/article/CA6505559.html?rssid=3D193
* FCC Chairman Martin Can't Find Votes To Hammer Cable TV Operators
http://www.multichannel.com/article/CA6505562.html?rssid=3D196
* Martin Backtracks on FCC Regulation of Cable TV
Today's result may represent Martin's biggest=20
setback at the FCC, but its exact impact won't be=20
clear until the FCC formally acts later today on the report.
http://adage.com/mediaworks/article.php?article_id=3D122237
* ACA, NAACP, HTTP Weigh In on FCC Video-Competition Report
Even before the Federal Communications Commission=20
members officially weighed in on the agency's=20
video-competition report Tuesday, the American=20
Cable Association, the National Association for=20
the Advancement of Colored People and the=20
Hispanic Technology and Telecommunications=20
Partnership were already praising the=20
commissioners who had not signed off on the=20
conclusion, leaked by chairman Kevin Martin, that=20
cable had reached a market-power threshold that=20
could trigger new cable regulation.
http://www.broadcastingcable.com/article/CA6505759.html?rssid=3D193

BROADCASTING

NEW REPORTING REGS FOR BROADCASTERS
[SOURCE: tvnewsday, AUTHOR: Harry A. Jessell]
The Federal Communications Commission adopted new=20
rules requiring TV and radio stations to make=20
quarterly local programming reports on=20
standardized forms. Stations must file the=20
reports with the FCC and, if they have a Web=20
site, make them available online to the public.=20
The standardized forms will require broadcasters=20
to list =93various types of programming, including=20
local civic programming, local electoral affairs=20
programming, public service announcements, and=20
independently produced programming,=94 according to=20
the FCC press release issued following the=20
late-night vote. The forms also will require=20
broadcasters to report any efforts they have made=20
to ascertain the programming needs of various=20
segments of their community, closed captioning=20
and video described content. This form will=20
replace the current issues/programs list, which=20
required broadcasters to place in their public=20
file on a quarterly basis a list of programs that=20
have provided the most significant treatment of=20
community issues. Commissioner Michael Copps saw=20
the action as one step toward his goal of=20
imposing specific public interest obligations on=20
broadcasters. =93[I]f we ever get serious about=20
having an honest-to-goodness licensing and=20
re-licensing regime around here=97and I intend to=20
keep pushing hard for that=97we will have much=20
better data on which to make those decisions,=94=20
Commissioner Copps said. Explaining his partial=20
dissent to the action, Commissioner Robert=20
McDowell said he objected to the =93quick=94 60-day=20
implementation requirement. And McDowell put=20
himself squarely in opposition to Copps, saying=20
the FCC is heading in the =93wrong direction=94 with=20
the new reporting requirements: =93Today=92s highly=20
competitive video market motivates broadcasters=20
to respond to the interests of their local=20
communities. I question the need for government=20
to foist upon local stations its preferences=20
regarding categories of programming. While we=20
stop short of requiring certain content, we risk=20
treading on the First Amendment rights of=20
broadcasters. The First Amendment applies to them=20
too. This form is government=92s not-so-subtle=20
attempt to exert pressure on stations to air=20
certain types of content. I cannot aid and abet=20
even a small step toward such a goal.=94
http://www.tvnewsday.com/articles/2007/11/28/daily.2/

DISCLOSURE IMPORTANT, BUT PIOs NEEDED, TOO
[SOURCE: Benton Foundation]
The Federal Communications Commission adopted new=20
rules aimed at improving the information local=20
television broadcasters provide to the=20
communities they are licensed to serve. This=20
commendable action is an important step for local=20
communities to evaluate whether broadcasters are=20
adhering to U.S. law and serving the "public=20
interest, convenience and necessity."=20
"Broadcasters already disclose their financial=20
statements to investors and their political=20
contributions to voters," noted Benton Foundation=20
Chairman Charles Benton. "They also should fully=20
disclose their public interest programming to=20
viewers. This reporting is as important as food=20
labeling." But, as has been reported widely, the=20
FCC is also moving quickly to change media=20
ownership rules and allow local newspaper owners=20
to purchase radio and TV stations in the same=20
community. Critics of this move have asked the=20
Commission to delay this decision. In part, they=20
argue that the FCC should first complete a=20
proceeding began in 1995 that would define what=20
programming "in the public interest" means in the=20
age of digital television, which officially=20
begins in February 2009 -- less than 450 days=20
away. Benton responded with a warning that the=20
work on public interest obligations is now, at best, just half done.
http://www.benton.org/node/8202

FOX MAKES CASE FOR WWOR
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
At the FCC license renewal forum on its public=20
service to New Jersey, Fox-owned WWOR-TV New=20
York(licensed to Secaucus, NJ) will offer up a=20
laundry list of efforts to serve its community of=20
license. The list includes its nightly 10 p.m.=20
newscast; hourly news updates between 4 and 7=20
p.m., weekly public affairs shows New Jersey Now=20
(formerly Ask Congress) and Real Talk; more than=20
20,000 PSA's over the past two years;=20
sports--"free, over-the-air broadcasts of the New=20
Jersey Nets and New York Giants"; its 110,000=20
square feet of office space in Secaucus; an=20
apprenticeship program; and employees'=20
participation in various events. WWOR even=20
invokes synergy with a newspaper to make its case=20
for local service, citing a partnership with=20
local paper, The Record, on "extensive" political coverage.
http://www.broadcastingcable.com/article/CA6505785.html?rssid=3D193
* New Jersey Citizens Fight to Be Heard
Concerned citizens and public interest groups=20
have petitioned the FCC to deny WWOR-TV 9=92s=20
broadcast license, asserting that the station=20
hasn't lived up to its commitment to serve New=20
Jersey. It=92s one of the first public hearings the=20
FCC has held to investigate a license renewal of=20
a TV station in decades. As such, this could be a=20
precedent-setting event, empowering other=20
communities to hold hearings looking into their=20
local TV and radio stations=92 public service. The=20
public owns the airwaves that radio and TV=20
stations use to broadcast. However, Big Media=20
companies have been permitted to use those=20
airwaves for free =97 making millions of dollars=20
doing so =97 under the obligation that they serve local communities.
http://www.stopbigmedia.com/blog/2007/11/27/new-jersey-citizens-fight-to...
-heard/

TELECOM

VERIZON WIRELESS FIRST TO ADOPT OPEN-NETWORK POLICY
[SOURCE: TelecomWeb]
Verizon Wireless, in a surprise move on Tuesday,=20
said it is abandoning its long-standing "walled=20
garden" policy and will allow users to connect=20
any compatible device they wish to its network=20
and use any application they want. The company=20
will publish technical standards for the=20
development community by early next year. What=20
this means is customers no longer will have to=20
buy phones only from Verizon Wireless or pay the=20
carrier to use "approved" applications. Verizon's=20
move immediately puts at least moral pressure on=20
all competitors in the market, with potentially=20
the most immediately challenged rival being=20
Sprint because both Verizon and Sprint use CDMA=20
technology. The Verizon decision would, thus,=20
make it far easier for Sprint users to change=20
allegiance and bring their devices with them,=20
rather than having to buy new ones. The move also=20
was seen as a potential indication that Verizon=20
is planning a strong bid for additional spectrum=20
in the forthcoming FCC auction of 700 MHz=20
channels next January. For that auction, the FCC=20
set aside spectrum for wireless networks that=20
allow customers to use any mobile device, not=20
just those blessed and/or sold by the network=20
owner. Common wisdom is that Verizon may be=20
bidding for that spectrum against Google, which=20
these days has designs on the wireless world with=20
its "Android" variant of mobile Linux, which its=20
touting as a cellphone operating platform to be=20
developed by members of a group it created called the Open Handset Alliance.
http://www.telecomweb.com/tnd/25811.html
* Verizon press release
http://news.vzw.com/news/2007/11/pr2007-11-27.html
* Verizon Wireless opens up network to outside devices
http://www.infoworld.com/article/07/11/27/Verizon-Wireless-opens-up-netw...
_1.html
* Verizon to open cell network to all phones
http://money.cnn.com/2007/11/27/technology/verizon/index.htm?section=3Dm...
y_technology
* Verizon Wireless opens network
http://www.reuters.com/article/technologyNews/idUSN2749533620071127
* Verizon Plans Wider Options for Cell Users
http://www.nytimes.com/2007/11/28/technology/28phone.html?ref=3Dtodayspaper
* Verizon to Open Cell Network to Others' Phones
http://online.wsj.com/article/SB119617188870905241.html?mod=3Dtodays_us_...
ketplace
* Verizon To Open Its Wireless Network
http://www.washingtonpost.com/wp-dyn/content/article/2007/11/27/AR200711...
1077.html
* Verizon frees customers to choose phones
http://www.usatoday.com/printedition/money/20071128/1b_verizon_wireless2...
rt.htm
* Next cell trend lets users hold the phone
http://www.latimes.com/news/printedition/front/la-fi-lazarus28nov28,1,69...
38.column?coll=3Dla-headlines-frontpage
** REACTION **
* House Commerce Committee Chairman John Dingell=20
(D-MI): "[T]the company=92s decision appears to be=20
a step forward for consumers. I'd like to see=20
additional carriers listen to their customers and offer a more open platfor=
m."
http://energycommerce.house.gov/Press_110/110nr129.shtml
* House Telecom Subcommittee Chairman Ed Markey=20
(D-MA): "[T]oday=92s announcement is welcome news=20
for wireless consumers and device and application=20
developers as it indicates that a major wireless=20
provider is moving in the direction of greater=20
network openness and consumer choice."
http://markey.house.gov/index.php?option=3Dcom_content&task=3Dview&id=3D...
1&Itemid=3D141
* FCC Chairman Kevin Martin: "I was pleased to=20
hear the announcement by Verizon Wireless of its=20
plans to introduce a new option for customers=20
throughout the country - an option that will=20
allow customers to use any device and to use any=20
applications that they choose on the Verizon Wireless network."
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-278410A1.doc
* Public Knowledge: If other carriers don't=20
follow the same model, then consumers will still=20
find their phones tied to a specific technology=20
or wireless company. Even with the announcement=20
today, if Verizon continues to subsidize=20
cellphones, then the adoption of the open model=20
will be minimal absent a rapid decline in cell=20
phone prices. We also note that Verizon alone=20
decides what phones and applications will be=20
acceptable to its network. It would be preferable=20
to have a neutral third party either making the=20
decision on acceptability for Verizon, or=20
conducting evaluations which would be accepted by Verizon.
http://www.publicknowledge.org/node/1286
* Media Access Project: "This is surely a step in=20
the right direction, but its shortcomings=20
underscore the need for regulations to guarantee=20
Americans the same rights on wireless networks=20
that they have on landlines. Without the=20
certainty that comes from making open platforms a=20
right, rather than a privilege at the mercy of a=20
provider's business plan, innovation and choice=20
in the wireless world will continue to lag behind Europe and Asia."
http://www.mediaaccess.org/press/2007-11-27-VerizonPressRelease.pdf
* New America Foundation's Wireless Future=20
Program: "Verizon's plan is a positive step, but=20
FCC Chairman Martin and the other commissioners=20
deserve the credit for making consumer choice a=20
condition on the TV band spectrum licenses that=20
will be auctioned early next year. This appears=20
to be a move to head off market entry and new=20
wireless competition from Google and other=20
Internet companies that would result if the=20
incumbent carriers were unwilling to meet minimal=20
FCC consumer choice requirements."
http://www.newamerica.net/programs/wireless_future#
** Commentary **
* Why Verizon Went Open & What It Means
[Commentary] Why? 1) I think it=92s because they=20
don't want to make open network concessions on=20
the upcoming 700 MHz auctions and 2) No more=20
subsidizing phone purchases. What does it mean=20
for consumers? 1) A phone with Wi-Fi doesn't need=20
approval from Verizon and 2) Chinese handset=20
makers can now bring $25 phones to the U.S.
http://gigaom.com/2007/11/27/what-it-means-why-verizon-went-open/

INTELLIGENCE BILL MAY HINGE ON IMMUNITY FOR TELECOMS
[SOURCE: USAToday, AUTHOR: Richard Willing]
An intelligence bill the Senate is scheduled to=20
take up after it returns Dec. 3 would block=20
Americans from learning details of any=20
warrantless surveillance program the federal=20
government conducted after the Sept. 11, 2001,=20
attacks, the American Civil Liberties Union says.=20
The bill would grant immunity from lawsuits to=20
communications companies for any "intelligence=20
activity involving communications" that was=20
"designed to detect or prevent a terrorist=20
attack" or attack preparations. Telecoms would=20
need to show they received a "written request or=20
directive" from the administration vouching that=20
the programs were "lawful" to stop lawsuits. Liz=20
Rose, spokeswoman for the Washington office of=20
the ACLU, says the language is a "blank check"=20
that would cover not only a warrantless=20
wiretapping program the Bush administration has=20
acknowledged but any unconfirmed or previously=20
unknown program. Last year, USA TODAY and other=20
media reported that some U.S. telecoms also=20
shared customer calling information with the=20
National Security Agency as part of an=20
anti-terrorism program that the administration has not confirmed.
http://www.usatoday.com/printedition/news/20071128/a_fisa28.art.htm

MEXICO TO CONDUCT ANTITRUST PROBE OF TELEPHONE INDUSTRY
[SOURCE: Bloomberg News]
Mexico's antitrust regulators expect to start an=20
investigation into the nation's fixed-line=20
telephone industry by early next year, a second=20
challenge to the companies that made billionaire=20
Carlos Slim one of the world's richest people.=20
Eduardo Perez Motta, president of the country's=20
Federal Competition Commission, said Tuesday that=20
the agency was reviewing complaints filed this=20
month by Spanish phone company Telefonica against=20
Slim's Telefonos de Mexico before starting the=20
probe. The investigation would follow an=20
initiative announced Monday to assess fees that=20
mobile-phone carriers charge rivals for=20
completing calls to their customers, Perez Motta=20
said. Slim's America Movil controls=20
three-quarters of Mexico's wireless market. The=20
probes pose a threat to America Movil and to=20
Telefonos de Mexico, or Telmex, which controls=20
about 90% of Mexico's phone lines. Perez Motta is=20
stepping up efforts to rein in Slim's market=20
power 17 years after he bought Telmex, a former national phone monopoly.
http://www.latimes.com/business/printedition/la-fi-telmex28nov28,1,10535...
story?coll=3Dla-headlines-pe-business
(requires registration)

UNIVERSAL BROADBAND

US NOT UP TO SPEED ON BROADBAND
[SOURCE: Los Angeles Times, AUTHOR: Jim Puzzanghera]
The federal government's latest annual report on=20
the availability of high-speed Internet service=20
throughout the country contains 19 pages of=20
detailed data -- pie charts, bar graphs, maps and=20
column upon column of numbers and percentages.=20
Most of them are useless. The Federal=20
Communications Commission considers any Internet=20
connection faster than 200 kilobits per second to=20
be high speed, even though that's too slow to=20
effectively watch streaming video and download=20
large files. And if broadband service is=20
available to one home in a ZIP Code, the FCC=20
assumes it to be available to everyone in that=20
area because it lacks any more detailed data.=20
Federal and state officials are working on=20
solving the data problem. They warn that getting=20
high-speed Internet access to more Americans is=20
crucial to the nation's economic growth and the=20
ability of U.S. companies to compete globally.=20
The FCC has been studying how to improve its=20
annual report. Now, legislation is moving through=20
Congress that would dramatically upgrade the government's broadband data.
http://www.latimes.com/business/printedition/la-fi-broadband28nov28,1,19...
7.story?coll=3Dla-headlines-pe-business
(requires registration)

FEDERAL BOARD RECOMMENDS BROADBAND FUND
[SOURCE: eWeek.com, AUTHOR: Roy Mark]
In a proposal designed to increase broadband in=20
rural and high-cost areas, the $7 billion=20
Universal Service Fund would be split into three=20
new pools with $300 million annually dedicated to=20
high-speed networks. The other two pools would be=20
used for wireless services and traditional=20
telephone service. The proposal by the=20
Federal-State Joint Board, which oversees the=20
fund financed by surcharges on consumer telephone=20
bills, would replace the current USF funding=20
structure that primarily focuses on telephone=20
service and Internet connections for schools and=20
libraries. The Federal Communications Commission=20
has one year to approve to the plan. FCC=20
Commissioner Michael Copps, who recommended five=20
years ago that the USF be used for broadband=20
deployment, praised the board's decision but=20
slammed the proposed funding levels. "I am=20
enormously pleased to approve of this historic=20
finding by the Joint Board because it establishes=20
for the first time the right mission for=20
Universal Service in the 21st Century,"=20
Commissioner Copps said. "I must express=20
disappointment, however, that once the initial=20
decision to include broadband was made, councils=20
of caution found their way to the=20
fore." Commissioner Copps noted the funding does=20
not include any new money, but a "mere=20
reshuffling of dollars among different pots.=20
That's like fighting a bear with a fly swatter."
http://www.eweek.com/article2/0,1895,2222200,00.asp
* FCC Urged to Subsidize Broadband Access In Rural Areas
"It's a move in the right direction, but the=20
amount of money they set aside is not going to do=20
the trick," says Ben Scott, policy director of the advocacy group Free Pres=
s.
http://publications.mediapost.com/index.cfm?fuseaction=3DArticles.san&s=...
1580&Nid=3D36716&p=3D368626

BENTON APPLAUDS JOINT BOARD DECISION ON BROADBAND
[SOURCE: Benton Foundation]
On Tuesday, November 20, 2007, the Federal-State=20
Joint Board on Universal Service (Joint Board)=20
offered what Federal Communications Commission=20
(FCC) Commissioner Michael Copps said "may well=20
be the most important single action a Joint Board=20
has ever taken." In a set of recommendations the=20
FCC now has one year to vote on, the Joint Board=20
suggested the current definition of services=20
supported by the federal Universal Service Fund=20
be expanded to include high-speed, broadband=20
Internet access. Benton Foundation Chairman and=20
CEO Charles Benton said, "The Joint Board has=20
finally recognized that high-speed Internet=20
services are essential to the nation's education,=20
public health, and public safety needs. With this=20
finding, it is obvious that the our=20
communications goals should include universal=20
availability of broadband Internet services at=20
affordable and comparable rates throughout the country."
http://www.benton.org/node/8194

CAP ON SUBSIDIES CRITICIZED
[SOURCE: knoxnews.com]
John E. Rooney, president and CEO of U.S.=20
Cellular, said Monday that the Federal-State=20
Joint Board on Universal Service's recommended=20
decision last week just before Thanksgiving was=20
"nothing to give thanks for." "In fact, it is=20
about as far away from true reform as one can=20
get. These recommendations represent a turn of=20
the clock back to an era of monopoly providers=20
and inadequate service and thwart what Congress=20
set out to accomplish with the Telecommunications=20
Act of 1996," Rooney said in a statement. Rooney=20
said that by proposing to cap Universal Service=20
Fund support to wireless carriers, the joint=20
board would deprive rural America of hundreds of=20
millions of dollars in new wireless investment.=20
He warned that the joint board's decision that=20
each rural geographic area be served by a single=20
wireless carrier will force rural households into=20
a federally regulated and subsidized monopoly=20
system. "This is the problem Congress intended to=20
solve when it created the USF to make sure that=20
rural communities are not left behind as new=20
telecommunications technologies emerge. If=20
enacted, this recommendation would undermine that=20
essential goal and further widen the=20
technological gap between urban and rural=20
America," Rooney said, adding that the USF is to=20
work with competition - not create barriers to=20
competition - so rural consumers can choose the services.
http://www.knoxnews.com/news/2007/nov/27/cap-on-subsidies-criticized/
* US Cellular press release
http://www.prnewswire.com/cgi-bin/stories.pl?ACCT=3D109&STORY=3D/www/sto...
11-26-2007/0004711558&EDATE=3D

TELSTRA LOOKING FOR A QUICKIE DEAL OVER BROADBAND
[SOURCE: Herald Sun, AUTHOR: Andrew Carswell]
Using broadband as a key election platform, Kevin=20
Rudd has promised to spend almost $5 billion to=20
build an open-access national high-speed=20
broadband fibre network for Australia. The=20
country's dominant telecommunications company,=20
Telstra, has issued a brash challenge to the new=20
Rudd Government, claiming it could start building=20
a $4.7 super fast national broadband network=20
within days. The call came despite Telstra having=20
no guarantees it would be even considered a=20
front-runner to win the lucrative contract.=20
Analysts labelled the call as arrogant and=20
presumptuous and a sign Telstra's relationship=20
with the Rudd Government would be even more=20
heated than with the former Howard Government.=20
Despite Telstra's enthusiasm, it's unlikely any=20
fibre rollout will start before late next year.
http://www.news.com.au/heraldsun/story/0,21985,22824394-664,00.html

UK MINISTER LEADS PUSH FOR FASTER BROADBAND
[SOURCE: Guardian, AUTHOR: Richard Wray]
Telecoms executives have been summoned to a=20
meeting today with the government and the=20
regulator, Ofcom, to thrash out a plan to stop=20
Britain slipping behind in the global broadband=20
league. The summit, organized by Stephen Timms,=20
the competitiveness minister and former=20
e-commerce minister, will tackle how to increase=20
Internet access speeds, paving the way for=20
services such as high-definition Internet TV, and=20
who will pay the =A37bn or so for the=20
infrastructure. The creation of a next-generation=20
access network could mean Britain dumping the=20
traditional copper phone lines in favour of fibre-optic cabling.
http://www.guardian.co.uk/business/2007/nov/26/telecoms.internet

QUICKLY

KEVIN MARTIN'S PRO-MARKET FCC
[SOURCE: National Review, AUTHOR: Cesar V. Conda & Lawrence J. Spiwak]
[Commentary] Some free-market advocates are=20
grumbling that the Federal Communications=20
Commission under Kevin J. Martin has not held=20
true to conservative principles, in particular in=20
regard to broadband technology. They are wrong.=20
Martin=92s tenure as chairman of the FCC has been=20
characterized by a consistent=20
pro-entry/pro-consumer-welfare mandate, the very=20
hallmark of economic conservatism. Chairman=20
Martin understands all too well that because=20
telecommunications is a very expensive business=20
and entry barriers remain high, responsible=20
policy must provide an environment where firms=20
have the incentive to invest and compete. For=20
example, while Martin has adhered to the=20
philosophy that there should be =93competition=20
first, then deregulation,=94 he also has recognized=20
that legacy regulation (or regulations now on the=20
books) can act as a barrier to effective=20
competition and investment. For these reasons he=20
has long espoused the notion that firms should be=20
able to =93invest their way out of regulation.=94=20
Unlike his ideological critics, Martin also=20
recognizes that markets are sometimes imperfect,=20
and thus has taken bold steps to stop=20
anti-competitive or other entry-deterring=20
behavior. Free-market advocates have raised=20
legitimate concerns about recent FCC proposals=20
that would set the auction rules for valuable=20
spectrum and place new regulations on the cable=20
industry. However, when the record is reviewed on=20
the whole, there can be no doubt that the=20
GOP-controlled FCC under Kevin Martin has been a=20
positive force for investment in the=20
telecommunications sector, acceleration of=20
broadband deployment, and economic growth=20
overall. If the Democrats win the White House in=20
2008 and take back control of the FCC, these very=20
same free-market advocates will view Martin=92s tenure in a more favorable =
light.
http://article.nationalreview.com/?q=3DMGQ4NGJjYjMwMTgzMzgwMmIxYjkyMTNkN...
NjU2MzA=3D

SURVEY: A QUARTER OF US WORKERS TELECOMMUTE REGULARLY
[SOURCE: InfoWorld, AUTHOR: Chris Kanaracus]
A survey released Tuesday by Citrix Online found=20
that 23 percent of American workers regularly do=20
their jobs from someplace besides the office, and=20
that 62 percent of respondents who cannot work=20
off-site would like to. The survey also found=20
that workers prized the ability to telecommute=20
more highly than stock options or on-site child care.
http://www.infoworld.com/article/07/11/27/Survey-quarter-US-workers-tele...
mute-regularly_1.html
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