November 2007

There's a little something going on the FCC today=20
(ALREADY DELAYED 'TIL 11AM) -- watch the meeting=20
on C-SPAN2, if you're near a TV. Bring provisions=20
if you're headed to FCC headquarters... it could=20
be a long day. For this and other upcoming media=20
policy events, see http://www.benton.org/?q=3Devent

AT THE FCC
FCC Chairman=92s Big Media Giveaway Exposed
House Judiciary Chairman Asks Tough Questions of FCC Chairman
Debate Continues Over Whether Cable Crossed 70/70 Threshold
Regulating Cable
House Democrats Differ with Martin on Multicast Must-Carry
FCC-CBS Agreement on KUTV Irks PTC
Agenda for WWOR-TV License Renewal Forum in New Jersey

ELECTIONS & MEDIA
Candidates, Retailers Vie for TV Time
In Iowa, Clinton Is Pressed on Murdoch

INTERNET/BROADBAND
Congressman seeks to revive network neutrality debate
NCTA To FCC: No Email Mandates, Please

QUICKLY -- What's the Future of Municipal Wi-Fi?;=20
Cable to Offer Switched Digital Video to TiVo=20
Subscribers; Google and Other People's Content;=20
Radio Rater Postpones People Meter in Some Cities

AT THE FCC

FCC CHAIRMAN'S BIG MEDIA GIVEAWAY EXPOSED
[SOURCE: Free Press, AUTHOR: Derek Turner, Marvin=20
Ammori, Joseph Torres, Craig Aaron]
Free Press released Devil in the Details, a=20
report exposing 10 key facts that Federal=20
Communications Commission Chairman Kevin Martin=20
is hiding from the public about his recent=20
proposal to lift the longstanding ban on=20
=93newspaper/broadcast cross-ownership.=94 FACT #1:=20
Martin=92s =93modest=94 proposal is corporate welfare=20
for Big Media. Martin=92s plan would unleash a=20
buying spree in the top 20 markets, making it=20
easier for companies like Belo, News Corp. and=20
Tribune Co. to push out independent, local=20
owners. FACT #2: Loopholes open the door to=20
cross-ownership in any market. Under Martin=92s=20
loose standards, cross-ownership waivers could be=20
approved in hundreds of smaller cities and towns.=20
FACT #3: Loopholes allow newspapers to own TV=20
stations of any size. The same technicalities=20
could permit top-rated stations in any market to=20
combine with major newspapers. FACT #4: FCC=20
history shows weak standards won=92t protect the=20
public. The current rules forbid cross-ownership,=20
but the FCC hasn=92t denied any temporary waiver=20
request in years. FACT #5: Cross-ownership=20
doesn=92t create more local news. The latest=20
studies =97 using the FCC=92s own data =97 show that=20
markets with cross-ownership produce less total=20
local news, as one dominant company crowds out=20
the competition. FACT #6: Cross-ownership won=92t=20
solve newspapers=92 financial woes. Claims that the=20
newspaper industry is about to =93wither and die=94=20
are greatly exaggerated, and no evidence shows=20
that cross-ownership would make things better.=20
FACT # 7: The Internet is an opportunity, not a=20
death sentence. Mergers and consolidation are not=20
the answer to the financial problems of the=20
traditional media. FACT #8: Martin=92s plan would=20
harm minority media owners. Nearly half of the=20
nation=92s minority-owned TV stations are=20
lower-rated outlets in the top 20 markets, making=20
them a target for Big Media takeovers. FACT # 9:=20
A broken and corrupt process creates bad=20
policies. The FCC=92s lack of transparency, flawed=20
research and secret timetable have tossed aside=20
basic fairness and accountability in the rush to=20
change media ownership rules. FACT # 10: The=20
public doesn=92t want more media consolidation.=20
Martin=92s actions ignore the millions of Americans=20
=97 and 99 percent of the comments in the FCC=20
docket =97 who oppose letting a few media giants swallow up more local medi=
a.
http://www.freepress.net/press/release.php?id=3D303
* Devil in the Details
http://www.stopbigmedia.com/files/devil_in_the_details.pdf
* Public Interest Groups Call for Media Diversity and Localism in FCC Meeti=
ng
A coalition of organizations called on the=20
Federal Communications Commission (FCC) at its=20
November 27th meeting to make consistent policies=20
promoting media diversity and localism across=20
broadcast and cable rules. The Coalition praised=20
the Commission's efforts to clear the way for=20
limits on cable ownership and the promotion of=20
diverse and local content. However, the Coalition=20
warned that the community radio rules on the=20
agenda must promote, not limit, the expansion of=20
the very low-power radio service they purport to=20
promote. Further, the Coalition also called the=20
localism and minority ownership proposals to be=20
considered by the FCC grossly inadequate.
http://saveaccess.org/node/1882

HOUSE JUDICIARY CHAIRMAN ASKS TOUGH QUESTIONS OF FCC CHAIRMAN
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
House Judiciary Committee Chairman John Conyers=20
(D-MI) has written Federal Communications=20
Commission Chairman Kevin Martin with some=20
concerns about media ownership rules and cable a=20
la carte. Chairman Conyers asked for the answers=20
to a number of questions "as expeditiously as=20
possible" including: whether the FCC would make=20
all of its public-meeting dates available at the=20
beginning of next year; whether it will establish=20
an independent minority task force before=20
completing the media-ownership-rule review;=20
whether Chairman Martin believes the commission=20
has the authority to mandate a la carte or=20
abrogate programming contracts that require=20
programming to be carried on a particular tier;=20
to supply any instances in which he has=20
circulated draft rules before the public-comment=20
period had ended or with less than one week of=20
the period ending; and to identify any times he=20
has talked with the press about the contents of=20
rules under consideration prior to their adoption.
http://www.broadcastingcable.com/article/CA6505265.html?rssid=3D193
* Free Market Organizations Warn President Bush=20
Massive New FCC Regulations Will Harm Consumers, Cable Industry
http://www.broadcastnewsroom.com/articles/viewarticle.jsp?id=3D240862

DEBATE CONTINUES OVER WHETHER CABLE CROSSED 70/70 THRESHOLD
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
Representatives from Media Access Project and the=20
Consumer Federation of America told Federal=20
Communications Commission member Jonathan=20
Adelstein cable has indeed passed the 70%=20
subscribership threshold that triggers potential=20
new FCC regulations, while Sanford C. Bernstein=20
analyst Craig Moffett continued to maintain that=20
this was essentially impossible given the figures=20
offered up by cable companies under severe=20
penalties for misreporting. In his letter, dated=20
Nov. 21, Moffet said that it was "mathematically=20
impossible" for cable to have reached the 70%=20
subscriber figure. In a letter to Commissioner=20
Adelstein -- buttressed by a second from CFA's=20
Mark Cooper -- Feld argued that Moffett "severely=20
underestimates" the number of cable subscribers=20
added in 2006. Feld cited accounting practices=20
that "systemically undercount millions of=20
subscribers in [multiple-dwelling units], condo=20
associations and housing associations,=94 saying it=20
was a matter of different accounting systems=20
rather than a question of lying by the cable operators.
http://www.broadcastingcable.com/article/CA6505157.html?rssid=3D193
* House Republican Leader Takes Aim at 70/70
In a letter to FCC Chairman Kevin Martin last=20
week, House Minority Leader John Boehner (R-OH)=20
wrote, "The FCC may even try to invoke authority=20
over the cable industry under an excessively=20
broad reading of the 70/70 provision from the=20
1984 Cable Act. This provision was not intended=20
to grant the FCC carte blanche to impose other=20
types of regulation." Although the provision does=20
empower the FCC to impose new regulations to=20
foster program diversity, Rep Boehner backs a=20
narrow reading saying, "It was drafted more than=20
20 years ago as a mechanism to respond to=20
decreases in sources of content, and that clearly=20
is not a problem today." He has asked House=20
Commerce Committee Ranking Member Joe Barton=20
(R-TX) to watch that the FCC treats all industries fairly.
http://www.broadcastingcable.com/article/CA6505194.html?rssid=3D193
* Republican Sens.: FCC May Be Overstepping Authority
On Monday, Sens. Jim DeMint (R-SC), Kay Bailey=20
Hutchison (R-TX), Gordon Smith (R-OR) and John=20
Sununu (R-NH) wrote FCC Chairman Martin to say=20
that they don't like what looks to them like=20
potentially "sweeping new regulations on the=20
cable industry." They warned the FCC not to=20
substitute its "regulatory preferences over the=20
determinations of the marketplace," saying that=20
if there is going to be any fundamental shift in=20
regulatory policymaking, it needs to be at the direction of Congress.
http://www.broadcastingcable.com/article/CA6505171.html?rssid=3D193
* Senate Republicans Slam FCC Chairman Martin=92s Cable Plan
http://www.multichannel.com/article/CA6505226.html?rssid=3D196
* FCC Cable-Regulation Plan Is at Risk Amid=20
Outside Pressure, Internal Squabbling
[SOURCE: Wall Street Journal, AUTHOR: Amy Schatz Amy.Schatz( at )wsj.com]
As of Monday night, the commissioners were still=20
haggling over details. Drafts of several=20
proposals remained incomplete and one FCC=20
official described negotiations as "a total=20
mess." Monday, FCC Chairman Kevin Martin's four=20
fellow commissioners were even "seriously talking=20
about how to not have the meeting at all," another FCC official said.
http://online.wsj.com/article/SB119612584345404695.html?mod=3Dtodays_us_...
e_one
(requires subscription)
* FCC Could Extend Reach To Cable TV
[SOURCE: Washington Post, AUTHOR: Frank Ahrens]
Any action the FCC takes would have little=20
immediate impact on consumer cable bills or=20
carriage issues, but the new study -- and its=20
crucial finding -- is at the center of a raging=20
fight between the cable industry and Martin, who=20
has taken positions unfavorable to cable. FCC=20
Commissioner Jonathan S. Adelstein, known as a=20
friend of consumer groups, a foe of media=20
concentration and a natural ally of Martin's on=20
the proposal -- has expressed doubts, saying=20
Martin is rushing the process. "We should be=20
basing our decision on the facts, not on=20
expediency," Adelstein said last night. "If=20
Adelstein doesn't vote for it, it's going to=20
cause an uproar in our community," said Gene=20
Kimmelman, vice president for federal and=20
international affairs at Consumers Union, a=20
watchdog group that advocates cable regulation=20
because it contends that the industry is a largely unchecked monopoly.
http://www.washingtonpost.com/wp-dyn/content/article/2007/11/26/AR200711...
2181.html
(requires registration)

REGULATING CABLE
[SOURCE: New York Times, AUTHOR: Editorial staff]
[Commentary] Cable companies are media titans,=20
and they should be regulated. Today the Federal=20
Communications Commission can take an important=20
step toward that goal. The FCC can protect=20
consumers by laying down some reasonable rules.=20
They should restrict preferential deals between=20
programmers and the big cable systems. This would=20
allow competing players =97 like satellite TV and=20
phone companies =97 to put together attractive=20
packages that would give consumers more choice.=20
The commission should also make it easier and=20
less expensive for independent programmers to=20
lease access on cable systems. The cable industry=20
is too big and too important to be given a regulatory pass.
http://www.nytimes.com/2007/11/27/opinion/27tue3.html?ref=3Dtodayspaper
(requires registration)

HOUSE DEMOCRATS DIFFER WITH MARTIN ON MULTICAST MUST-CARRY
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
Eleven House Democrats have written Federal=20
Communications Commission Chairman Kevin Martin=20
about his statement that imposing=20
digital-multicast must-carry obligations on cable=20
was "the most important thing we can do" for the=20
digital-TV transition. They said the FCC should=20
not try to adopt a policy it has twice rejected,=20
particularly given that it has already=20
established "rules of the road" for cable digital=20
carriage in a recent decision on cable's carriage=20
of a viewable TV-station signal after the transition.
http://www.broadcastingcable.com/article/CA6505220.html?rssid=3D193

FCC-CBS AGREEMENT ON KUTV IRKS PTC
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
On Monday, Parents Television Council President=20
Tim Winter criticized the Federal Communications=20
Commission's consent decree with CBS over the=20
airing of an "Without a Trace" episode on KUTV in=20
Salt Lake City. Winter said that the FCC had=20
"shamefully" tried to bury the news by releasing=20
it the day after Thanksgiving. Winter added that=20
the commission "let CBS off the hook not once but=20
twice for airing the same indecent content," and=20
that it "failed miserably to serve the public=20
interest." =93CBS has no credibility when it says=20
its violation of the consent decree was=20
=91inadvertent,'=94 Winter said. =93The truth is that=20
CBS first ignored broadcast-decency law when=20
airing a teen-orgy scene in the first place, and=20
then again when it ignored the terms of the=20
consent decree its own attorneys negotiated to=20
absolve itself of responsibility for the content=20
it aired.=94 He continued, =93How can the FCC justify=20
a newly adopted consent decree to replace an=20
ignored consent decree? What assurance does the=20
public, the owners of the broadcast airwaves,=20
have that this new consent decree is any more=20
meaningful than the one already violated by CBS?"=20
The PTC wanted the FCC to either designate the=20
station's license for hearing, which is=20
essentially a trial to determine whether CBS got=20
to keep the license, or to reopen the thousands=20
of indecency complaints -- including ones on the=20
same Without a Trace episode -- that CBS wiped=20
away with the initial consent decree that cost it $3.6 million.
http://www.broadcastingcable.com/article/CA6505234.html?rssid=3D193

AGENDA FOR WWOR-TV LICENSE RENEWAL FORUM IN NEW JERSEY
[SOURCE: Federal Communications Commission]
On Wednesday, the FCC will hold a public forum on=20
the license renewal of WWOR-TV. The hearing is=20
open to the public, and seating will be available=20
on a first-come, first-served basis. The hearing=20
format will enable members of the public to=20
participate via "open microphone." Speakers on=20
the agenda include Sen Frank Lautenberg (D-NJ);=20
Lew Leone, Vice President and General Manager,=20
WWOR; Donna Sandorse, Voice for New Jersey;=20
Angela Campbell, Institute for Public=20
Representation; Ingrid Reed, Director, Eagleton=20
Institute New Jersey Project; and Parul Desai,=20
Assistant Director, Media Access Project. The FCC=20
is letting the public weigh in on whether or not=20
the station has "failed to provide a program=20
service and adequately meet the needs of its=20
northern New Jersey viewers" as alleged by the=20
United Church of Christ and Rainbow/PUSH. They=20
challenged News Corp, the station's owner, waiver=20
to operate TV stations and newspapers in the same market.
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-278361A1.doc
* FCC Sets Agenda for Hearing on WWOR-TV License Renewal
http://www.broadcastingcable.com/article/CA6505136.html?rssid=3D193

ELECTIONS & MEDIA

CANDIDATES, RETAILERS VIE FOR TV TIME
[SOURCE: Associated Press, AUTHOR: David Pitt]
An earlier date for Iowa's caucuses probably=20
means presidential candidates will run more=20
television ads from mid-November through=20
December, the height of the Christmas shopping=20
season when retailers want to promote sales.=20
Moving the caucuses up 11 days to Jan. 3 also=20
will force candidates to pay top dollar for TV=20
ads over the holidays and soften their messages=20
to avoid violating the serenity of the season.=20
The same equation applies in New Hampshire, whose=20
first-in-the-nation primary will follow the Iowa=20
caucuses five days later. "This is just like=20
adding a hailstorm to a hurricane," said Evan=20
Tracey, who tracks political advertising as chief=20
operating officer for TNS Media=20
Intelligence/Campaign Media Analysis Group.=20
"You've got a 16-deep field of candidates,=20
interest groups and everybody else that's all=20
going to want the same time." The schedule=20
presents a conundrum for the presidential=20
campaigns. Political advertising has a tendency=20
to become more negative closer to an election as=20
candidates seek to contrast themselves with their=20
rivals. "Attack ads don't necessarily blend well=20
with Santa Claus and holiday cheer," said Steve=20
McMahon, a Democratic media strategist who ran=20
Howard Dean's presidential ad campaign in 2003=20
and 2004. What's more, in a field with many=20
candidates, negative advertising can backfire.=20
"If candidate A attacks candidate B, it's often=20
not candidate A who benefits. It's candidate C or D or E," McMahon said.
http://www.tvnewsday.com/articles/2007/11/26/daily.12/

IN IOWA, CLINTON IS PRESSED ON MURDOCH
[SOURCE: New York Times 11/25, AUTHOR: Patrick Healy]
The curious relationship between Hillary Rodham=20
Clinton, presidential candidate, and Rupert=20
Murdoch, media baron, flashed briefly before the=20
eyes of Iowans on Saturday night during a Clinton=20
campaign event. A woman in the audience rose to=20
ask Sen Clinton (D-NY) about Mr. Murdoch=92s=20
ownership of multiple media outlets (Fox News,=20
The New York Post, soon The Wall Street Journal,=20
and various other organs), and also whether=20
Americans would =93lose out democracy=94 if one=20
person is in control of the media. And Sen=20
Clinton played both sides in her answer,=20
responding sympathetically to the woman=92s concern=20
about media consolidation, but also making clear=20
that she wasn=92t singling out =93any company in=20
particular=94 for condemnation. =93There have been a=20
lot of media consolidations in the last several=20
years, and it is quite troubling,=94 Sen Clinton=20
began her reply. =93The fact is, most people still=20
get their news from television, from radio, even=20
from newspapers. If they=92re all owned by a very=20
small group of people =97 and particularly if they=20
all have a very similar point of view =AD it really=20
stifles free speech.=94 Sen Clinton pledged that as=20
president, she would appoint commissioners to the=20
Federal Communications Commission who supported=20
=93competition in the media,=94 and she hailed=20
Theodore Roosevelt as a model for his=20
trust-busting approach to monopolistic corporate=20
impulse. =93It=92s bad for consumers because you=20
limit choice,=94 Sen Clinton said of media=20
consolidations, and =93it=92s bad for citizens=20
because it limits the diversity we have.=94
http://thecaucus.blogs.nytimes.com/2007/11/25/in-iowa-clinton-is-pressed...
-murdoch/
(requires registration)

* Clinton's missed opportunity
http://blog.seattletimes.nwsource.com/dailydemocracy/index.html#020401

INTERNET/BROADBAND

CONGRESSMAN SEEKS TO REVIVE NETWORK NEUTRALITY DEBATE
[SOURCE: National Journal, AUTHOR: David Hatch]
Rep. Edward Markey (D-MA) plans to introduce=20
legislation in December to set the stage for=20
congressional debate in 2008 on the ability of=20
telecommunications companies to restrict content=20
carried over their wireline and wireless=20
high-speed Internet networks. His network=20
neutrality measure would be part of a=20
multi-pronged effort to shift the issue back into=20
the spotlight. It is expected to include hearings=20
in both chambers. Watchdog groups are urging=20
Senate Commerce Committee Chairman Daniel Inouye=20
(D-Hawaii) and House Judiciary Committee Chairman=20
John Conyers (D-MI) to convene January hearings=20
on recent allegations of discriminatory online=20
practices. Spokesmen for both panels did not have=20
any comment. The House Commerce=20
Telecommunications and the Internet Subcommittee=20
that Rep Markey heads already plans to hold=20
additional sessions on the topic next year. The=20
legislative push is being fueled by recent=20
flare-ups over net neutrality involving AT&T,=20
Comcast and Verizon Communications, sources said.=20
They noted that the online activist group=20
MoveOn.org is urging Markey to revive the issue=20
so it resonates more loudly on the presidential campaign trail.
http://govexec.com/dailyfed/1107/112607tdpm1.htm?rss=3Dtechnology

NCTA TO FCC: NO EMAIL MANDATES, PLEASE
[SOURCE: Multichannel News]
The cable=92s industry largest trade group is=20
opposed to rules that would require Internet=20
Service Providers to forward email to the new=20
email address of a former customer for a period=20
of six months. The National Cable &=20
Telecommunications Association said such rules=20
were unnecessary, expensive, and beyond the=20
regulatory authority of the Federal Communications Commission to impose.
http://www.multichannel.com/article/CA6505279.html?nid=3D3412

QUICKLY

WHAT'S THE FUTURE OF MUNICIPAL WI-FI?
[SOURCE: Computerworld, AUTHOR: Bert Latamore]
Despite EarthLink's exit from the market,=20
municipal wireless is alive and well in the U.S.,=20
mostly in small-to-midsize cities, and it's=20
beginning to spread to Europe, said Esme Vos,=20
founder of MuniWireless. Vos said the predominant=20
economic model today is for the municipality to=20
guarantee a minimum annual contract for municipal=20
services to provide an economic anchor for the=20
network. It then can sell excess connectivity to=20
businesses and private individuals. She said that=20
municipalities find this attractive because they=20
can realize several benefits from municipal Wi-Fi=20
with bottom-line efficiency improvements that=20
save money in normal operations, as well as=20
top-line service improvements, particularly to=20
public safety and emergency services. It's=20
common, for example, for municipalities to=20
install wireless water and sewer meters and=20
eliminate the expense of sending out meter readers.
http://www.pcworld.com/article/id,139845-pg,1/article.html

CABLE TO OFFER SWITCHED DIGITAL VIDEO TO TIVO SUBSCRIBERS
[SOURCE: Multichannel News, AUTHOR: Todd Spangler]
After legislators raised concerns that switched=20
digital video technology represented a cable=20
industry initiative that would make certain=20
programming inaccessible to third-party consumer=20
electronics, the National Cable &=20
Telecommunications Association committed to=20
finding a solution. On Monday, NCTA was joined by=20
TiVo in an announcement that in mid-2008, major=20
cable operators expect to offer TiVo customers an=20
adapter that will give the DVRs direct access to=20
switched digital video channels. Switched digital=20
video transmits linear TV channels only when=20
customers request them. That lets an operator=20
deliver more programming in the same amount of=20
bandwidth with the assumption that fewer than=20
half the channels being switched will be viewed simultaneously.
http://www.multichannel.com/article/CA6505011.html?rssid=3D196
* TiVo, NCTA Team Up on Switched Digital
http://www.broadcastingcable.com/article/CA6505106.html?rssid=3D193

GOOGLE AND OTHER PEOPLE'S CONTENT
[SOURCE: BusinessWeek, AUTHOR: Jon Fine]
[Commentary] Some perched in lofty places=20
throughout the media biosphere advance a quietly=20
radical notion: Google will start buying content=20
companies. In fact, they say, Google will have no=20
choice. This doesn't happen today or tomorrow but=20
somewhere down the road, as the torrid growth=20
tails off. The reason is AdSense, Google's=20
business that runs ads around others' content and=20
pays the owners the bulk of related revenues.=20
This business is less profitable than AdWords,=20
which runs targeted ads around Google's search=20
results. And there are indicators that gap will=20
widen. Owning some high-traffic sites, however,=20
does away with revenue splits and immediately boosts profit.
http://www.businessweek.com/magazine/content/07_49/b4061083.htm?campaign...
=3Drss_tech

RADIO RATER POSTPONES PEOPLE METER IN SOME CITIES
[SOURCE: New York Times, AUTHOR: Brian Stelter]
Arbitron delayed a wider rollout of a contentious=20
new system for measuring radio audiences=20
yesterday, prompting sighs of relief from some=20
New York radio stations. Arbitron=92s new=20
measurement method, called the personal people=20
meter, met with staunch opposition this month=20
when a test showed steep declines for several=20
radio stations catering to younger listeners and=20
minorities. Arbitron said it remained confident=20
in the people meter ratings, but it wanted more=20
time to address the issues raised by its clients.
http://www.nytimes.com/2007/11/27/business/media/27arbitron.html?ref=3Dt...
yspaper
(requires registration)
* Arbitron to Delay New Radio-Ratings System
http://online.wsj.com/article/SB119611671348004426.html?mod=3Dtodays_us_...
e_one
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Communications-related Headlines is a free online=20
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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
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