January 2008

A few events of note next week: 1) a House=20
hearing on PEG cable channels, 2) a FCC DTV=20
consumer education workshop and 3) the True Spin=20
Conference. For these and other upcoming media=20
policy events, see http://www.benton.org/event/2008/01/01/month/all/all/1

GOVERNMENT & COMMUNICATIONS
Advocacy group: No free pass for telecom spying
In Senate, a White House Victory on Eavesdropping

SPECTRUM
Top bids $2.78 bln as US wireless auction opens
Frontline Wireless Bid Failed Amid Investor Concern, Bid Rules
Wireless Carterfone
Google Asks FCC To Ignore Sprint, T-Mobile On White Spaces

MEDIA OWNERSHIP
FCC votes to approve buyout of Clear Channel

BROADCASTING
PSAs Get 17 Seconds of Each Television Hour
FCC Releases Localism Rules, Proposals
NTIA's Baker: Converter Boxes Should Be on Shelves Feb. 18
Fox Won't Sell Super Bowl Ads to Candidates

UNIVERSAL SERVICE/UNIVERSAL BROADBAND
FCC to release USF reform proposals
$137 billion needed by 2010 to close gap between broadband demand and capa=
city
Rural towns bundling a blueprint for broadband

DIGITAL CONTENT
2007 Sets a New Record for Online Readership
Murdoch won't make all of online WSJ free
Public Television Educates America Far Beyond the Broadcast

QUICKLY -- Double Whammy

GOVERNMENT & COMMUNICATIONS

ADVOCACY GROUP: NO FREE PASS FOR TELECOM SPYING
[SOURCE: InfoWorld, AUTHOR: Grant Gross]
Free Press called on the U.S. Congress to reject=20
bills that would give retroactive legal immunity=20
to telecommunication carriers that helped the=20
government monitor phone calls and e-mail after=20
Vice President Dick Cheney pushed for the=20
legislation. "Phone companies are supposed to=20
deliver our messages, not spy on them," Josh=20
Silver, executive director of Free Press, said.=20
"But at every turn, these telco giants trample on=20
basic constitutional principles of privacy and=20
free speech. When you break the law, you should=20
face the consequences." The lawsuits will show=20
U.S. residents that phone company spying "will=20
not be tolerated," he added. The American Civil=20
Liberties Union has called the Protect America=20
Act, the "Police America Act." The legislation=20
"allows for massive, untargeted collection of=20
international communications without court order=20
or meaningful oversight by either Congress or the=20
courts," the ACLU says on its Web site. "It=20
contains virtually no protections for the U.S.=20
end of the phone call or e-mail, leaving=20
decisions about the collection, mining, and use=20
of Americans' private communications up to this=20
administration." Sen. Christopher Dodd (D-CT)=20
said Wednesday he'll block the legislation with a=20
filibuster if it comes to the Senate floor with=20
telecom immunity provisions attached. "Few=20
things are more detrimental to this country than=20
the erosion of and attack on the civil liberties=20
we enjoy," Sen Dodd said. "More and more,=20
Americans are rejecting the false choice that has=20
come to define this administration: security or=20
liberty, but never, ever both."
http://www.infoworld.com/cgi-bin/redirect?source=3Drss&url=3Dhttp://www....
oworld.com/article/08/01/24/No-free-pass-for-telecom-spying_1.html
* Free Press statement
http://www.freepress.net/press/release.php?i
* Statement by the President on FISA
"If Congress does not act quickly, our national=20
security professionals will not be able to count=20
on critical tools they need to protect our=20
Nation, and our ability to respond quickly to new=20
threats and circumstances will be weakened. That=20
means it will become harder to figure out what=20
our enemies are doing to recruit terrorists and=20
infiltrate them into our country."
http://www.whitehouse.gov/news/releases/2008/01/20080124.html
* Bush pressures Congress on FISA
http://thehill.com/index.php?option=3Dcom_content&task=3Dview&id=3D70946...
emid=3D70
* Edwards says Senate Dems lack =91backbone=92
Former Sen. John Edwards (D-NC) on Thursday said=20
it is =93time for Senate Democrats to show a little=20
backbone and stand up to George W. Bush and the=20
corporate lobbyists=94 on a Foreign Intelligence=20
Surveillance Act (FISA) measure that would give=20
retroactive immunity to telecommunications corporations.
http://thehill.com/leading-the-news/edwards-says-senate-dems-lack-backbo...
2008-01-24.html

IN SENATE, A WHITE HOUSE VICTORY ON EAVESDROPPING
[SOURCE: New York Times, AUTHOR: Eric Lichtblau]
A White House plan to broaden the National=20
Security Agency=92s wiretapping powers won a key=20
procedural victory in the Senate on Thursday, as=20
backers defeated a more restrictive plan by=20
Senate Democrats that would have imposed more=20
court oversight on government spying. The vote=20
moves the Bush administration a step closer=20
toward the twin goals it has pursued for months:=20
strengthening the N.S.A.=92s ability to eavesdrop=20
without court approval, while securing legal=20
immunity for the phone companies that have helped=20
the agency in its wiretapping operations. At the=20
same time, the White House agreed Thursday after=20
months of resistance to give members of the House=20
Intelligence and Judiciary Committees access to=20
internal documents on the N.S.A.=92s wiretapping=20
program and the legal foundation for it. That=20
access could ultimately help persuade skeptical=20
lawmakers in the House, which so far has rejected=20
the immunity idea, to sign on to the White House=92s plan.
http://www.nytimes.com/2008/01/25/washington/25nsa.html?ref=3Dtodayspaper
(requires registration)
* Phone Firms' Bid for Immunity in Wiretaps Gains Ground
http://www.washingtonpost.com/wp-dyn/content/article/2008/01/24/AR200801...
3454.html
* Senate spy bill still shields telecoms
http://www.latimes.com/news/printedition/asection/la-na-spy25jan25,1,140...
7.story
* Phone company immunity wins Senate test vote
http://www.reuters.com/article/politicsNews/idUSN2428822920080125

SPECTRUM

TOP BIDS $2.78 BLN AS US WIRELESS AUCTION OPENS
[SOURCE: Reuters, AUTHOR: Peter Kaplan]
Top bidders put up a total of almost $2.78=20
billion on Thursday in the opening rounds of the=20
Federal Communications Commission's auction of=20
coveted U.S. government-owned airwaves. The=20
figure represents the highest bids received for=20
five separate blocks of spectrum at the beginning=20
of the auction, which is eventually expected to=20
net the federal government at least $10 billion.=20
The $2.78 billion worth of opening high bids=20
included a $472 million offer for a closely=20
watched block of spectrum, known as the "D"=20
block, which will have to be shared with public=20
safety agencies under FCC rules. It also included=20
an opening high bid of about $1.24 billion for=20
the sought-after "C" block, which carries another=20
condition requiring that it be open to all=20
devices and software applications as long as the=20
minimum price is met. The FCC has set minimum=20
prices of $1.3 billion and $4.7 billion for the D=20
and C blocks respectively. These blocks could be=20
used to create a national network. Other spectrum=20
includes local chunks set aside in blocks=20
designated "A" and "B". The final, "E" block, is=20
considered less useful because it is limited to=20
one-way data transmission. Starting on Friday,=20
the FCC is scheduled to hold three rounds of=20
bidding each day until further notice. Bidding=20
typically accelerates as the auction progresses.
http://www.reuters.com/article/technologyNews/idUSN2425560720080124
* Spectrum Auction Spotlights Wireless Woes (Free Press)
Ben Scott: "The wireless industry is dominated by=20
a handful of companies with a track record of=20
stifling competition and an aversion to the=20
innovation that open networks bring to the=20
market. Placing the promise of the mobile=20
Internet exclusively under the gatekeeper control=20
of these companies is a chilling prospect. We=20
need policies that open the closed networks of=20
today and guarantee an open wireless Internet for future generations.=94
http://www.freepress.net/press/release.php?id=3D329
* How the wireless spectrum auction could change your life
Depending on who's talking, the wireless spectrum=20
auction that starts on Jan. 24 will significantly=20
change the mobile and wireless landscape in the=20
United States, or it won't have much impact at all.
http://www.infoworld.com/article/08/01/24/How-the-wireless-spectrum-auct...
-could-change-your-life_1.html
* FCC's Airwaves Auction Draws $2.78 Billion in Bids
http://www.washingtonpost.com/wp-dyn/content/article/2008/01/24/AR200801...
3174.html
* Airwaves draw high initial bids
http://www.latimes.com/business/printedition/la-fi-fcc25jan25,1,2550421....
ry

FRONTLINE WIRELESS BID FAILED AMID INVESTOR CONCERN, BID RULES
[SOURCE: DowJones, AUTHOR: Corey Boles corey.boles( at )dowjones.com]
When Frontline Wireless abruptly closed its doors=20
two weeks ago, most people assumed the group was=20
an early victim of credit market stinginess. But=20
according to several people familiar with the=20
events that led to Frontline's demise, potential=20
investors grew nervous that vague Federal=20
Communications Commission bidding rules left=20
Frontline exposed in its partnership with public=20
safety agencies. The FCC auction rules state that=20
whoever buys one of the spectrum chunks, known as=20
the D-block, must work with public safety=20
agencies to build a wireless broadband network=20
for use by police and firefighters. In order to=20
ensure the winner of the D-block license=20
cooperates with the public safety community, the=20
FCC rules say if it is deemed the licensee wasn't=20
negotiating in "good faith" it could be forced to=20
forfeit more than $100 million and lose all=20
rights to the spectrum it had acquired. According=20
to the people familiar with Frontline's=20
perspective, potential investors in Frontline=20
were extremely concerned about the vagueness of=20
this rule. Moreover, Cyren Call, which is=20
representing the public safety community in=20
negotiations with possible bidders for the=20
D-block, informed Frontline in one meeting the=20
winner of the D-Block auction would be required=20
to pay $500 million over 10 years to lease access=20
to spectrum controlled by public safety in order=20
to build the wireless broadband network.
http://news.morningstar.com/newsnet/ViewNews.aspx?article=3D/DJ/20080124...
7DOWJONESDJONLINE001005_univ.xml

WIRELESS CARTERFONE
[SOURCE: New America Foundation, AUTHOR: Rob Frieden, Penn State University]
Frieden paper explains why wireless Carterfone=20
policy constitutes a long overdue policy response=20
to carrier practices that often have nothing to=20
do with protecting their networks from technical=20
harm or other legitimate network management=20
needs. For example, blocking the implementation=20
of wireless Carterfone enables carriers to=20
continue locking subscribers into two-year=20
service contracts with substantial penalties for=20
early termination. In exchange for the service=20
commitment, consumers acquire a=20
carrier-subsidized handset, but they also consent=20
to carrier-imposed restrictions on the use of the=20
handset they bought, including the ability to=20
access telecommunications and content services of=20
competitors even after the carrier has recouped=20
its subsidy. This analysis explains how wireless=20
carriers benefit financially by avoiding=20
Carterfone obligations and refutes the rationales=20
and justifications for this behavior. The paper=20
also demonstrates that the FCC has ample=20
statutory authority to apply wireless Carterfone=20
policy based on the largely ignored fact that=20
when wireless cellular telephone companies=20
provide telecommunications service, they remain=20
subject to most common carrier regulations=20
regardless of the fact that they also may offer=20
less regulated information services. Finally,=20
this report explains that wireless carriers must=20
comply with public interest regulatory mandates=20
even though they might conflict with carriers=92=20
preferred business plans. The Commission has=20
undertaken a number of analogous initiatives to=20
protect consumers from mandatory bundling=20
arrangements, such as its 2005 order mandating=20
alternatives to cable set-top box leasing, which=20
underscore the continued importance of Carterfone=20
principles to protecting the public interest.
http://www.newamerica.net/publications/policy/wireless_cartefone
* Full text:
http://www.newamerica.net/files/Wireless_Carterfone_Frieden.pdf

GOOGLE ASKS FCC TO IGNORE SPRINT, T-MOBILE ON WHITE SPACES
[SOURCE: Wall Street Journal 1/23, AUTHOR: John Letzing]
Google asked the Federal Communications=20
Commission on Tuesday to ignore opposition to=20
using so-called "white spaces" spectrum for=20
broader Internet access from mobile operators=20
Sprint Nextel and T-Mobile USA. Earlier this=20
month, Sprint and T-Mobile asked the FCC to=20
reject plans put forward by Google, Microsoft and=20
a number of other technology companies to allow=20
unlicensed use of mobile devices on the=20
white-spaces spectrum. The mobile operators said=20
that using such devices would interfere with=20
licensed broadcasts, while better uses could be=20
found for the spectrum. But in a letter filed=20
with the FCC, Google argued that the mobile=20
operators' belated entry into the white-spaces debate should be "set aside."
http://online.wsj.com/article/BT-CO-20080123-716555.html?mod=3Ddist_smar...
ief
(requires subscription)

MEDIA OWNERSHIP

FCC VOTES TO APPROVE BUYOUT OF CLEAR CHANNEL
[SOURCE: Reuters]
The Federal Communications Commission announced=20
on Thursday that it has approved the buyout of=20
Clear Channel by private equity firms Bain=20
Capital Partners and Thomas H. Lee Partners for=20
about $20 billion. Commissioner Michael Copps=20
said Clear Channel would divest 42 radio stations=20
in the top 100 U.S. markets under the agreement=20
approved by the FCC. But even though they voted=20
for approval, Commissioners Copps and Jonathan=20
Adelstein also expressed concerns about the deal.=20
Commissioner Copps said the agency should=20
scrutinize the ownership of media outlets by=20
private equity firms and how it could affect "our=20
ability to ensure that broadcast licensees=20
protect, serve and sustain the public interest."=20
"If I had the ability to launch an FCC inquiry by=20
dissenting to this transaction, I would," Commissioner Copps said.
http://www.reuters.com/article/industryNews/idUSWBT00824420080124
* FCC Order:
http://hraunfoss.fcc.gov/edocs_public/attachmatch/FCC-08-3A1.doc
* Commissioner Copps: "I have repeatedly called=20
for the Commission to examine the potential=20
impact of private equity on our ability to ensure=20
that broadcast licensees protect, serve and=20
sustain the public interest. Unfortunately, that=20
has not happened, and nothing in today's Order=20
indicates that the Commission has had a change of=20
heart. Instead, we once again close our eyes and=20
pretend that nothing has changed-as if these new=20
entities are no different than our traditional=20
broadcast licensees. And there are those who=20
accuse me of living in the past! The Commission's=20
lack of curiosity here is all the more troubling=20
in light of the announcement last month by=20
Standard & Poor's that when the transaction=20
closes it will cut its ratings on Clear Channel=20
two notches deeper into "junk" territory-and may=20
cut them further-due to the subordination of existing debt to new bank debt=
."
http://hraunfoss.fcc.gov/edocs_public/attachmatch/FCC-08-3A2.doc
* Commissioner Adelstein: "Approval of this=20
transaction will result in less consolidation in=20
the radio industry. While I support this Order=20
generally, I concur in part to highlight my=20
concern regarding alleged anticompetitive=20
practices with respect to advertising in the=20
radio industry. I agree with the Order's=20
conclusion that, in this case, Mt. Wilson has=20
failed to establish a prima facie case that Clear=20
Channel has engaged in specific anticompetitive=20
sales practices. I am not convinced, though,=20
that the Commission's inquiry should stop there."
http://hraunfoss.fcc.gov/edocs_public/attachmatch/FCC-08-3A3.doc

BROADCASTING

PSAs GET 17 SECONDS OF EACH TELEVISION HOUR
[SOURCE: Kaiser Family Foundation]
To help inform the work of non-profits seeking to=20
communicate with the public, the Kaiser Family=20
Foundation is releasing a new, updated study that=20
examines the extent and nature of public service=20
advertising (PSA) on both broadcast and cable=20
television. The report finds that broadcast and=20
cable stations in the study donated an average of=20
17 seconds an hour to PSAs =AD totaling one-half of=20
one percent of all TV airtime. The most frequent=20
time period for PSAs to air was between midnight=20
and 6 a.m., accounting for 46% of donated PSAs=20
across all stations in the study; looking only at=20
broadcast stations, 60% of donated PSAs ran=20
overnight. The time period with the fewest=20
donated PSAs was during prime time (8-11 p.m.), with 13% of all donated PSA=
s.
http://www.kff.org/entmedia/entmedia012408nr.cfm
* Public service ads tilt to insomniacs (Associated Press)
http://www.latimes.com/business/printedition/la-fi-psa25jan25,1,1492667....
ry
* PSAs are few and far between (Associated Press)
http://www.businessweek.com/ap/financialnews/D8UCD2GG0.htm
* Shouting To Be Heard (2): Public Service=20
Advertising in a Changing Television World
http://www.kff.org/entmedia/7715.cfm
* FCC Commissioner Michael Copps
"This year, by the way, broadcasters have a=20
special challenge-preparing television viewers=20
for the upcoming DTV transition... I do want to=20
make one point that is germane to this discussion=20
of PSAs: It's going to require lots of air time=20
to make viewers aware of what's coming and what=20
they need to do to prepare themselves for=20
DTV. But it would be tragic if we saw all the=20
other kinds of PSAs and public service=20
programming cut back to accommodate this new=20
need. Stepping up to the plate here means=20
broadcasters doing both the DTV transition and=20
moving ahead-not cutting back-on PSAs."
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-279697A1.doc
* Kaiser Family Foundation Study Takes Aim at PSAs
http://www.broadcastingcable.com/article/CA6525265.html?rssid=3D193
* National Association of Broadcasters
"We're pleased with Kaiser's findings that there=20
has been no decrease in public service=20
advertising over the last five years. NAB's own=20
surveys reveal that local television and radio=20
stations donate more than seven billion dollars in airtime for PSAs annuall=
y."
http://www.nab.org/AM/Template.cfm?Section=3DNews_Room&TEMPLATE=3D/CM/Co...
ntDisplay.cfm&CONTENTID=3D11626

FCC RELEASES LOCALISM RULES, PROPOSALS
[SOURCE: tvnewsday]
The Federal Communications Commission on Thursday=20
released new rules and proposed new regulations=20
aimed at making TV stations more responsive to=20
local communities. New disclosure rules require=20
stations to file quarterly reports with the FCC=20
detailing the amount and kinds of local=20
programming they air using a standardized form.=20
On the form, stations must list all programs in=20
the following categories: national news, local=20
news, local civic affairs, local electoral=20
affairs, independently produced (non-network)=20
programs, local programs with significant=20
treatment of community issues, religious programs=20
and programs for underserved communities. The FCC=20
also wants a list of PSAs. The proposed rules=20
would require TV stations to air a minimum amount=20
of local programming and to set up community=20
advisory boards and possibly take other steps to=20
ascertain what audiences what to watch.
http://www.tvnewsday.com/articles/2008/01/24/daily.17/
* Disclosure order:
http://hraunfoss.fcc.gov/edocs_public/attachmatch/FCC-07-205A1.doc
Localism report and Notice of Proposed Rulemaking:
http://hraunfoss.fcc.gov/edocs_public/attachmatch/FCC-07-218A1.doc

NTIA'S BAKER: CONVERTER BOXES SHOULD BE ON SHELVES FEB 18
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
Acting National Telecommunications and=20
Information Administration chief Meredith Atwell=20
Baker said Thursday that she was still confident=20
that digital-TV-to-analog converter-box=20
manufacturers will have those boxes on the=20
shelves by Feb. 18 (exactly one year before the=20
DTV switch), when the NTIA has said it will start=20
processing applications for coupons good toward=20
the purchase of those boxes. Baker -- flanked by=20
banners in English and Spanish that read, "Will=20
Your TV Work After February 17, 2009?" -- said=20
she did not think the Federal Communications=20
Commission will need to require broadcasters to=20
air public-service announcements about the=20
transition or cable operators to use=20
billstuffers, adding that voluntary industry=20
efforts remained the best way to get the message=20
across. The NTIA's Tony Wilhelm, director of=20
consumer affairs for the campaign, outlined some=20
of the upcoming education efforts. They include a=20
"benefits week" in April, when the emphasis will=20
be on selling the social benefits of the=20
transition beyond clearer pictures, which include=20
helping to free up spectrum for first-responders=20
who protect the local community, and the freeing=20
up of spectrum for advanced wireless devices that=20
will benefit consumers. Then in September comes=20
"application completion" week, where churches,=20
synagogues, mosques and other community gathering=20
places will be encouraged to provide application=20
information. Come fall, as the time grows=20
shorter, the emphasis will switch to "Life=20
Without Television" to emphasize that some=20
viewers could lose their signals if they don't take action.
http://www.broadcastingcable.com/article/CA6525433.html?rssid=3D193
* NTIA Asks for Help Targeting Communities for DTV Box Coupons
[SOURCE: National Telecommunications and Information Administration]
The Commerce Department's National=20
Telecommunications and Information Administration=20
(NTIA) hosted a meeting with more than 15 other=20
federal agencies to further coordinate efforts to=20
educate the nation about the February 17, 2009,=20
deadline to transition to digital television. The=20
meeting including the U.S. Department of Veterans=20
Affairs; U.S. Department of Health and Human=20
Services, Administration on Aging (AoA); U.S=20
Department of Education; U.S. Department of=20
Agriculture; U.S. Department of Homeland=20
Security; and the Social Security Administration.=20
During the meeting, NTIA outlined their current=20
and upcoming consumer education efforts. In=20
addition, the agencies discussed strategies and=20
existing communications efforts, which may be=20
leveraged to raise consumer awareness of the=20
digital television transition and the TV=20
Converter Box Coupon Program. To date, more than=20
two million applications for more than 3.7=20
million coupons have been requested since the=20
program opened on January 1, 2008.
http://www.ntia.doc.gov/ntiahome/press/2008/DTV_Partners_012408.html
* NAB's Rehr Asks Retailers to Ensure that Converter Boxes Are on Shelves
National Association of Broadcasters president=20
David Rehr wrote the CEO of Best Buy and the=20
heads of seven other major retailers asking them=20
to make sure that digital-TV-to-analog converter=20
boxes are on the shelves by February, when the=20
National Telecommunications and Information=20
Administration has said that it plans to start=20
processing applications for government-subsidized=20
$40 coupons toward the purchase of those boxes.
http://www.broadcastingcable.com/article/CA6525438.html?rssid=3D193
DISCLOSURE: Tony Wilhelm is a former Benton Foundation executive.

FOX WON'T SELL SUPER BOWL ADS TO CANDIDATES
[SOURCE: TVWeek, AUTHOR: Ira Teinowitz]
There may be ads for beer, cars and computers on=20
the Super Bowl, but there won't be any for=20
presidential candidates. Fox has put an end to=20
speculation that one or more of the presidential=20
candidates might use the highest-rated TV=20
broadcast of the year to air a national campaign=20
spot two days before more than 20 states hold=20
presidential primary and caucus votes. While no=20
candidate has yet requested time, the network has=20
declared it won't sell Super Bowl spots to their=20
campaigns. The reasons: The show is sold out and=20
equal opportunities couldn't be provided to all=20
candidates, even if some additional time could be=20
found for one to buy in. Sources close to the=20
situation said that because ad time in the Super=20
Bowl is essentially sold out, Fox will choose to=20
not sell time to a candidate, citing an FCC=20
ruling that a network can reasonably refuse to=20
sell political time in =93unique, one-time-only=94=20
broadcasts where equal ad time can't be offered=20
to all candidates. Evan Tracey, chief operating=20
officer of TNSI Media Intelligence=92s Campaign=20
Media Analysis Group, which tracks campaign ad=20
spending, had suggested a Super Bowl spot could=20
help to motivate supporters, with parties to=20
watch the game and a half-time =93get out there and=20
fight=94 call from the candidate. Mr. Tracey said=20
he had heard rumors that some campaign staffs were looking at the possibili=
ty.
http://www.tvweek.com/news/2008/01/fox_wont_sell_super_bowl_ads_t.php
(requires free registration)
* No candidates, OK -- but what about Brady?
http://www.boston.com/sports/football/patriots/articles/2008/01/25/brady...
sts_his_injured_ankle/

UNIVERSAL SERVICE/UNIVERSAL BROADBAND

FCC TO RELEASE USF REFORM PROPOSALS
[SOURCE: Associated Press]
The Federal Communications Commission is set to=20
release several proposals aimed at reforming a=20
government-subsidized fund to offset costs of=20
deploying telecommunications services in rural=20
and under-served parts of the country. The agency=20
will release three items suggesting a radical=20
overhaul of the Universal Service Fund --=20
possibly as soon as later this week -- according=20
to several FCC officials. The first will ask for=20
feedback on a proposal long championed by=20
Chairman Kevin Martin known as reverse auctions=20
which would designate the company that asked for=20
the least amount of assistance to receive=20
financial assistance from the fund in any given=20
geographic area. A second proposed change would=20
address an issue known as identical support.=20
Currently, the amount that qualifying wireless=20
companies receive from the fund is based on the=20
rates paid to wired-line telephone companies in=20
the same area. But, the costs that wired-line=20
companies face are far greater than those by=20
wireless companies, and there have long been=20
calls to address this discrepancy. The final=20
notice to be released by the FCC will formally=20
put out for comment several of the=20
recommendations made last year by the=20
Federal-State Board on Universal Service=20
including a proposal that a portion of the fund=20
to help pay for the costs of deploying broadband=20
Internet networks across the country.
http://www.businessweek.com/ap/financialnews/D8UBSFLO0.htm

$137 BILLION INVESTMENT REQUIRED BY 2010 TO CLOSE=20
GAP BETWEEN GROWING DEMAND AND BROADBAND ACCESS CAPACITY
[SOURCE: Networked World, AUTHOR: Brad Reese]
Consumer and corporate Internet usage could=20
outstrip network capacity worldwide by 2010=20
according to a recent Nemertes Research Study.=20
The required investment globally to bridge the=20
gap between demand and broadband access capacity=20
is estimated at $137 billion. This is roughly=20
60-70 percent above and beyond what service=20
providers are already planning to invest. The=20
study indicates that by 2010, the Internet=92s=20
capacity will not likely accommodate user demand.=20
As a result, users could increasingly encounter=20
Internet brownouts or interruptions to the=20
applications they=92ve become accustomed to using on the Internet.
http://www.networkworld.com/community/node/24049

RURAL TOWNS BUNDLING A BLUEPRINT FOR BROADBAND
[SOURCE: Burlington (VT) Free Press, AUTHOR: Joel Banner Baird]
Using Burlington Telecom's municipal broadband=20
network as a model, 22 rural Vermont towns are=20
poised to pool their resources and launch a=20
fiber-optic project that could go online by the=20
end of 2009. It's more than a twinkle in a=20
technician's eye. Members of the East Central=20
Vermont Community Fiber Network announced=20
Wednesday that formal agreements are in the works=20
from Windsor to Montpelier that would bring the=20
strength of numbers -- and attractive financing=20
-- to universal broadband Internet coverage. The=20
group's leadership presented the project at a=20
board meeting of the Vermont Telecommunications=20
Authority held Wednesday at the Zampieri Office=20
Building in Burlington. The presenters made no=20
funding requests but asked the state board for=20
support with credit and regulatory hurdles.
http://www.burlingtonfreepress.com/apps/pbcs.dll/article?AID=3D/20080124...
WS02/801240322/1007

DIGITAL CONTENT

2007 SETS A NEW RECORD FOR ONLINE READERSHIP
[SOURCE: Editor&Publisher, AUTHOR: Jennifer Saba]
More people read newspapers online in 2007 than=20
in the previous year, setting a record, according=20
to the latest data from the Newspaper Association=20
of America. The organization reported that 60=20
million people visited an online newspaper last=20
year, compared with 56.4 million in 2006 -- a=20
6.3% increase in unique audience. The average=20
time spent per person also jumped in 2007 to=20
almost 43 minutes compared with 41 minutes in 2006.
http://www.editorandpublisher.com/eandp/news/article_display.jsp?vnu_con...
t_id=3D1003701533
* See NAA press release:
http://www.naa.org/PressCenter/SearchPressReleases/2008/Online-Newspaper...
ewership.aspx

MURDOCH WON'T MAKE ALL OF WSJ FREE
[SOURCE: Reuters, AUTHOR: Ben Hirschler]
News Corp Chief Executive Rupert Murdoch said on=20
Thursday he would not make all online Wall Street=20
Journal content free. "We're sort of dividing it=20
up. Those things that you can get more or less as=20
a commodity on different sites about finance,=20
that will certainly be free at the Wall Street=20
Journal," he said. "The really specialized=20
(material) giving the greatest insights, that=20
will still be a subscription service."
http://www.reuters.com/article/internetNews/idUSL2473813520080124

PUBLIC TELEVISION EDUCATES AMERICA FAR BEYOND BROADCAST
[SOURCE: Corporation for Public Broadcasting]
The Corporation for Public Broadcasting released=20
the results of a comprehensive survey of public=20
television stations undertaken by SRI=20
International. The study reveals that more than=20
84 percent of the stations are providing=20
educational services directly to their=20
communities. These services, which extend beyond=20
the broadcast, range from special in-person=20
reading programs for parents and childcare=20
providers; to professional development resources=20
for teachers; to online activities designed to=20
spark student learning in subjects such as science and math.
http://www.cpb.org/pressroom/release.php?prn=3D631

QUICKLY

DOUBLE WHAMMY
[SOURCE: American Journalism Review, AUTHOR:=20
Raquel Christie (rchristie( at )ajr.umd.edu)]
It took an awfully long time for the national=20
media to catch up to the racial turmoil in Jena,=20
Louisiana. When they did, the results were not=20
exactly a clinic in precision journalism.
http://ajr.org/Article.asp?id=3D4454
--------------------------------------------------------------
... and we're outta here. BYOB -- Bring Your Own Blues -- tonight.
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Communications-related Headlines is a free online=20
news summary service provided by the Benton=20
Foundation (www.benton.org). Posted Monday=20
through Friday, this service provides updates on=20
important industry developments, policy issues,=20
and other related news events. While the=20
summaries are factually accurate, their often=20
informal tone does not always represent the tone=20
of the original articles. Headlines are compiled=20
by Kevin Taglang headlines( at )benton.org -- we welcome your comments.
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