January 2008

GOVERNMENT & COMMUNICATIONS
The FISA Follies, Redux

FCC REFORM
The Winds of Change

ELECTIONS & MEDIA
Fight for Who Controls Televised Debates
Team Obama Is Courting Everybody But the Press

BROADCASTING
FCC's Rereg Push is Big Test for the Rehr NAB
FCC levies "NYPD" indecency fine
Meeting the Digital TV Deadline
Best Buy: Converter Boxes on Shelves in All Stores by Feb. 18

MEDIA OWNERSHIP
Wireless auction bids $3.7 bln
Stop the auction!
Liberty Sues IAC Over Proposed Split
Hedge Fund Seeks Board Seats at Times Co.

INTERNET/BROADBAND
FCC Pushes to Overhaul Subsidy Program for Rural Phones
Broadband's Growing 'Need for Speed'
Bush Looks to Beef Up Protection Against Cyberattacks
Study shows eBay buyers save billions of dollars

QUICKLY -- Phone giants' rising rates questioned;=20
FCC: 8M Wireless Users Keep Cell Numbers;=20
Bundling telecom services best for frequent=20
users; Vonage sues Nebraska PCS for fee on=20
Internet calls; The 'S' stands for sham; No=20
breaking for commercials; China vows to crack down on Internet piracy

GOVERNMENT & COMMUNICATIONS

THE FISA FOLLIES, REDUX
[SOURCE: New York Times, AUTHOR: Editorial staff]
[Commentary] The Senate (reportedly still under=20
Democratic control) seems determined to help=20
President Bush violate Americans=92 civil liberties=20
and undermine the constitutional separation of=20
powers. Majority Leader Harry Reid is supporting=20
White House-backed legislation that would expand=20
the administration=92s ability to spy on Americans=20
without court supervision and ensure that the=20
country never learns the full extent of Mr.=20
Bush=92s illegal wiretapping program. It is now up=20
to the House to protect Americans=92 rights. Mr.=20
Bush has already started issuing the ritual=20
claims that if his bill is not passed instantly,=20
Osama bin Laden will be telephoning his agents in=20
the United States and no one will know. Let us be=20
clear, Mr. Bush has always had the authority to=20
order emergency wiretaps =97 and get court approval=20
after the fact. That has never been the problem=20
with FISA. The House should vote to extend last=20
summer=92s flawed rules for at least 30 days and go=20
on recess, forcing the Senate to do the same=20
thing, and then bring the whole matter to a=20
conference committee. There will then be plenty=20
of time for a real debate. Lawmakers and the rest=20
of the nation should bear this in mind: Mr.=20
Bush=92s version of this law does not make=20
intelligence-gathering more robust. Opponents=20
like Senators Christopher Dodd and Patrick Leahy=20
want to spy on Al Qaeda, too. They=92re just not=20
willing to do it in a way that undermines the=20
very democracy that the spies, Congress and the=20
president are supposed to be protecting.
http://www.nytimes.com/2008/01/26/opinion/26sat1.html
(requires registration)
* The table is set for Monday, when the Senate=20
will vote on Senate Minority Leader Mitch=20
McConnell's (R-KY) attempt to end debate on the=20
intelligence committee's bill. That motion to=20
invoke cloture will need 60 votes to pass. If it=20
does pass, then the Senate would immediately vote=20
on the bill, which civil libertarians dislike for=20
a number of reasons beyond its measure granting=20
retroactive immunity to the telecoms.
http://www.tpmmuckraker.com/archives/005139.php
* State of the Outrage
[Commentary] Because Barbara Bush taught him to=20
"use your words, George," her son the president,=20
rather than actually mooning some Senate=20
Democrats at the joint session of Congress on=20
Monday night as he would like to do, will instead=20
call them terrorist-lovers for refusing to give=20
retroactive immunity to lawbreaking telecoms in=20
the FISA bill, and he will call them partisan=20
obstructionists for wanting to extend=20
unemployment benefits in the economic stimulus bill now pending.
http://www.huffingtonpost.com/marty-kaplan/state-of-the-outrage_b_83455....

FCC REFORM

THE WINDS OF CHANGE
[SOURCE: Multichannel News, AUTHOR: Ted Hearn]
The House Commerce Committee is shining a=20
spotlight on Federal Communications Commission=20
Chairman Kevin Martin=92s management of the agency.=20
But it hasn't been made clear to him precisely=20
why. The basis of the investigation has been=20
stated only in vague terms. And there could be=20
something of a public payback involved: Committee=20
Chairman John Dingell (D-MI) is evidently upset=20
that Martin gave the public just 28 days to=20
review the FCC plan to relax the newspaper-TV=20
station cross-ownership ban. But there is always=20
more than meets the public eye when the winds of=20
change blow in. Privately, Chairman Dingell has=20
heard repeatedly from regulated industries that=20
Chairman Martin has failed to state proposed=20
rules in clear terms, producing a process that=20
lacks transparency and due process. See URL below=20
on the outlook for 1) setting deadlines, 2)=20
reviewing mergers, 3) restructuring the agency,=20
and 4) consistency and openness.
http://www.multichannel.com/article/CA6525874.html

ELECTIONS & MEDIA

FIGHT FOR WHO CONTROLS TELEVISED DEBATES
[SOURCE: Associated Press, AUTHOR: David Bauder]
The legacy of Dennis Kucinich's longshot=20
presidential campaign may be less his anti-war=20
views than a futile fight that legally reinforced=20
the rights of TV networks to organize their own=20
debates. That may come at a cost, however, with=20
some Americans are already worried about the=20
media's influence on the campaign. Forcing a=20
network to include one candidate is censorship,=20
and the Federal Communications Commission said it=20
won't do that. Still, the idea of keeping=20
candidates out of debates offended some people's sense of fair play.
http://www.marshallnewsmessenger.com/featr/content/shared-gen/ap/TV/AP_o...
V_Shrunken_Debates.html

TEAM OBAMA IS COURTING EVERYBODY BUT THE PRESS
[SOURCE: Washington Post, AUTHOR: Howard Kurtz]
When reporters filed onto Barack Obama's press=20
plane after his acrimonious debate with Hillary=20
Rodham Clinton last week, one thing was=20
noticeably missing amid the wine and snacks on=20
the Boeing 737. There was no high-level campaign=20
spinner to argue that Obama had gotten the better=20
of the exchanges or that the verbal fisticuffs=20
were part of some precisely calculated strategy.=20
On the press bus the next day, mid-level aides=20
dealt with travel logistics but made no attempt=20
to shape the coverage. In an age of all-out=20
political warfare, the Obama campaign is a bit of=20
an odd duck: It is not obsessed with winning each=20
news cycle. The Illinois senator remains a remote=20
figure to those covering him, and his team, while=20
competent and professional, makes only spotty=20
attempts to drive its preferred story lines in=20
the press. "There is no charm offensive from the=20
candidate toward the press corps," says Newsweek=20
correspondent Richard Wolffe. "The contact is=20
limited. . . . They see the national media more=20
as a logistical problem than a channel for getting stuff out."
http://www.washingtonpost.com/wp-dyn/content/article/2008/01/27/AR200801...
2160.html
(requires registration)

BROADCASTING

FCC'S REREG PUSH IS BIG TEST FOR THE REHR NAB
[SOURCE: tvnewsday, AUTHOR: Harry Jessell]
[Commentary] The National Association of=20
Broadcasters must figure out how to repeal the=20
Federal Communications Commission's new=20
disclosure rules and fight back on proposed new=20
localism rules. What=92s particularly disturbing is=20
the initiatives are provoked by the feeling at=20
the FCC that something is horribly wrong with=20
broadcasters=92 local programming efforts and that=20
they need to be policed. What the broadcasters=20
need is a plan of attack on all three fronts --=20
the courts, the Hill and the FCC -- and someone=20
to direct the attack in what will likely be a=20
long campaign. It=92s up to NAB President David=20
Rehr and his crew to show what they can do the=20
job. This is their opportunity. NAB starts off in=20
a hole. It should have derailed both proceedings=20
before they saw the light of day. But, somehow,=20
it lost touch with FCC Chairman Kevin Martin and=20
seemed to be as surprised as everybody else when he began his localism push.
http://www.tvnewsday.com/articles/2008/01/25/daily.14/
* FCC Releases Specifics of Localism Rulemaking -=20
Proposing Lots of New Rules For Broadcasters
http://www.broadcastlawblog.com/archives/public-interest-obligationsloca...
m-fcc-releases-specifics-of-localism-rulemaking-proposing-lots-of-new-rules=
-for-broadcasters.html

FCC LEVIES "NYPD" INDECENCY FINE
[SOURCE: Reuters, AUTHOR: Brooks Boliek, Hollywood Reporter]
The Federal Communications Commission on Friday=20
determined that a woman's naked backside is=20
indecent. It proposed fining the ABC stations=20
that aired a particular episode of NYPD Blue in=20
2003 a collective $1.43 million. FCC Commissioner=20
Deborah Taylor Tate said Friday's action puts=20
broadcasters on notice. "Our action today should=20
serve as a reminder to all broadcasters that=20
Congress and American families continue to be=20
concerned about protecting children from harmful=20
material and that the FCC will enforce the laws=20
of the land vigilantly. In fact, pursuant to the=20
Broadcast Decency Act of 2005, Congress increased=20
the maximum authorized fines tenfold. The law is=20
simple. If a broadcaster makes the decision to=20
show indecent programming, it must air between=20
the hours of 10 p.m. and 6 a.m. This is neither=20
difficult to understand nor burdensome to=20
implement." In its decision the FCC ruled that=20
the February 25, 2003, episode of the ABC program=20
"NYPD Blue" in which a nude woman is surprised by=20
a young boy as she prepares to shower is too much for primetime broadcast T=
V.
http://www.reuters.com/article/domesticNews/idUSN2534678020080127
* FCC Proposes $1.4M Fine Against ABC Stations for NYPD Blue
http://www.broadcastingcable.com/article/CA6525921.html?rssid=3D193
* FCC Fines ABC Stations $1.4 Million For Indecency
http://www.multichannel.com/article/CA6525965.html
* FCC Decision:
http://hraunfoss.fcc.gov/edocs_public/attachmatch/FCC-08-25A1.doc
* Commissioner Tate:
http://hraunfoss.fcc.gov/edocs_public/attachmatch/FCC-08-25A2.doc
See also --
* Media Institute: Free Speech Threatened
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
Media Institute president Patrick Maines sees a=20
critical mass of threats to the First Amendment=20
and is advising media companies that they are not=20
doing nearly enough to repel them. In a stinging=20
analysis posted on the organization=92s Web site,=20
Maines said freedom of speech "is in tatters,"=20
and it will take more than "sunshine weeks" and=20
First Amendment coloring books to mend it. But he=20
added that at least those organizations are=20
trying. "Most are doing nothing," he said,=20
"either because (1) they don't have any real=20
understanding of the issue; (2) they trust that,=20
in the end, they'll be saved by the courts; or=20
(3) they don't really care so long as whatever=20
speech controls are enacted are applied to everyone."
http://www.broadcastingcable.com/article/CA6525942.html?rssid=3D193

MEETING THE DIGITAL TV DEADLINE
[SOURCE: BusinessWeek, AUTHOR: Olga Kharif]
Millions of U.S. consumers have just over a year=20
to get ready for the government-mandated switch=20
to digital TV from the less efficient,=20
decades-old analog system. Federal officials say=20
the upgrade will free big chunks of valuable=20
broadcast airwaves for public safety providers,=20
such as police departments, and for consumers=20
will provide a sharper, more vibrant picture.=20
Come Feb. 17, 2009, some 1,760 stations will=20
cease sending analog signals and begin=20
broadcasting in digital format only. Only=20
community-based broadcasting will remain=20
available in analog. But the Community=20
Broadcasters Association, which represents=20
several thousand smaller stations that offer=20
local programming or rebroadcast larger stations'=20
programs in rural areas, is threatening legal=20
action. Its member stations aren't required to=20
convert to digital transmission. So people with=20
older TVs could still receive those stations'=20
broadcasts after the February, 2009, cutoff. The=20
problem is that TVs equipped with most of the new=20
converter boxes certified by the NTIA won't=20
receive programming from stations operating in=20
the analog format, says Greg Herman, the=20
association's vice-president for technology and=20
an owner of 15 small stations that broadcast in Oregon.
http://www.businessweek.com/technology/content/jan2008/tc20080128_135558...
m?chan=3Dtechnology_special+report+--+top+8+tech+trends+in+08_top+8+tech+tr=
ends+in+%2708

BEST BUY: CONVERTER BOXES ON SHELVES IN ALL STORES BY FEB 18
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
A spokesman for Best Buy said Friday that the=20
chain would have digital-TV-to-analog converter=20
boxes in all of its stores by Feb. 18, 2008. "We=20
will have the boxes in time for the first people=20
who get their coupons," Best Buy spokesman Brian=20
Lucas said, adding that the date would be either=20
Feb. 17 or 18. He said the stores -- 917 of them=20
in 49 states -- are stocking only one box, its=20
Insignia store brand, which will retail in the $50-$70 range.
http://www.broadcastingcable.com/article/CA6525813.html?rssid=3D193

MEDIA OWNERSHIP

WIRELESS AUCTION BIDS $3.7 BILLION
[SOURCE: Reuters, AUTHOR: Peter Kaplan]
The bidding topped $3.7 billion on the second day=20
of the Federal Communications Commission's=20
auction of government-owned airwaves, but there=20
were no new suitors Friday for a closely watched=20
block of spectrum to be shared with public safety=20
agencies. The $3.7 billion, up from $2.78 billion=20
on Thursday, represented the highest bids=20
received for five separate blocks of spectrum in=20
the auction, which is eventually expected to net=20
the federal government at least $10 billion.=20
However, there were no new bids on a nationwide=20
piece of the spectrum, known as the "D" block,=20
which must be shared with public safety agencies=20
under auction rules set by the agency. Thursday's=20
bid of $472 million still stood.
http://www.reuters.com/article/technologyNews/idUSN2537607920080126
* Spectrum Auction Update: 1,030 Bidders, $3.03B After Three Rounds
http://www.broadcastingcable.com/article/CA6525748.html?rssid=3D193
* 700MHz auction update: High bids total $3.2 billion
http://www.infoworld.com/article/08/01/25/700MHz-auction-bids-total-3.2-...
lion_1.html
See also --
* Stop the Auction! Congress and the FCC Must=20
Investigate D Block Allegations Before Proceeding
[SOURCE: Tales from the Sausage Factory, AUTHOR: Harold Feld]
[Commentary] The Public Safety Spectrum Trust=20
holds the national 12 MHZ public safety license=20
that makes up the =93public safety=94 half of the=20
=93public/private partnership=94 with D Block and=20
selected Cyren Call to act as their exclusive=20
agent and adviser for negotiations with the D=20
Block winner and management of the network. Over=20
a year ago, Feld wrote that the Public Safety=20
Trust will have as much authority over Cyren Call=20
as Queen Elizabeth II has over =93her=94 Prime=20
Minister Tony Blair. Apparently Cyren Call=20
recently told Frontline=92s investors that it would=20
cost $500 million over ten years as a flat fee to=20
access the PSST spectrum -- in addition to giving=20
Cyren Call the monopoly on reselling services to=20
the public safety entities around the country=20
that use the spectrum. Worse, from the=20
perspective of Frontline and other potential=20
bidders, the FCC will act as the ultimate arbiter=20
if the D Block winner and PSST cannot reach an=20
agreement. Because the Order was designed to=20
protect the interests of the public safety=20
community (who, it was believed, would not be=20
negotiating to maximize profit), the FCC Order=20
reserves the right to invoke heavy penalties=20
against the D Block winner, but does not speak of=20
penalizing the PSST or its representative. So=20
Frontline (and now, any other D Block winner)=20
face the specter of negotiating with a=20
profit-driven Cyren Call under the threat of FCC=20
sanctions if they do not agree to all of Cyren Call's terms.
http://www.wetmachine.com//item/1022

LIBERTY SUES IAC OVER PROPOSED SPLIT
[SOURCE: Multichannel News, AUTHOR: Mike Farrell]
Liberty Media upped the ante in its brewing=20
battle with IAC/InterActiveCorp, filing a suit in=20
Delaware Chancery Court to block a move by the=20
Internet giant to split into five separate=20
companies. Liberty, which owns a 29.9% economic=20
stake but 61.7% of the vote of IAC through Class=20
B super-voting shares, apparently has been=20
stewing for months after IAC chairman Barry=20
Diller proposed the split in November. According=20
to the suit filed on Jan. 24, Liberty wants to=20
ensure that the dual-class voting structure=20
currently in place at IAC will be retained after=20
the split. According to court documents, IAC has=20
proposed a single-tier voting structure for the=20
five entities, which would dilute Liberty=92s control.
http://www.multichannel.com/article/CA6525773.html?rssid=3D196

HEDGE FUND SEEKS BOARD SEATS AT TIMES CO
[SOURCE: New York Times 1/26, AUTHOR: Richard=20
Perez-Pena & Michael de la Merced]
Harbinger Capital Partners, a part of the Harbert=20
Management Corporation, controls less than 5=20
percent of Times Company stock, a level that=20
would require a declaration to federal=20
regulators. But on Friday the hedge fund gave=20
notice that it would try to elect directors to=20
The New York Times Company board, a day after the=20
same hedge fund gave similar notice to another=20
newspaper company, Media General. Harbinger owns=20
18% of Media General. Even if it was successful=20
in electing a slate of directors, Harbinger would=20
not be able to take control of the board without=20
an about-face by the controlling family at each=20
company. Harbinger=92s strategy is to invest in=20
distressed assets, placing it in a class of=20
investors sometimes known as vulture funds. The=20
investments it has made in the last two years=20
include Bally Total Fitness; United States Steel;=20
Salton, the seller of George Foreman grills; and Gateway.
http://www.nytimes.com/2008/01/26/business/26times.html
(requires registration)

INTERNET/BROADBAND

FCC PUSHES TO OVERHAUL SUBSIDY PROGRAM FOR RURAL PHONES
[SOURCE: Wall Street Journal, AUTHOR: Amy Schatz Amy.Schatz( at )wsj.com]
Alarmed at the growth of a multibillion-dollar=20
federal phone-subsidy program, regulators are=20
beginning an effort to curb costs and prevent=20
consumers from paying more in fees. As soon as=20
today, the Federal Communications Commission is=20
expected to open for public comment several=20
proposals to revamp the Universal Service Fund,=20
which subsidizes phone services for low-income=20
and rural customers. The program's budget=20
ballooned to about $7 billion last year from $5.2=20
billion in 2002 as more companies sought to tap=20
the federal revenue stream -- a transfer of money=20
collected from consumers through surcharges on=20
phone bills. The charge is usually found on a=20
phone bill itemized as a "federal universal=20
service charge." One proposed change calls for=20
using a reverse-auction system to pick which=20
phone companies receive multimillion-dollar=20
payments for providing phone service in rural=20
areas. A separate plan would lower the amount of=20
money wireless companies receive to offer service=20
in rural areas. For the first time, the FCC also=20
will look into whether money should be set aside=20
to subsidize broadband Internet lines. Changing=20
the subsidy program won't be easy. The=20
11-year-old program has amassed a devoted group=20
of supporters, and previous efforts to rein in the program have mostly fail=
ed.
http://online.wsj.com/article/SB120148455929220793.html?mod=3Dtodays_us_...
ketplace
(requires subscription)

BROADBAND'S GROWING 'NEED FOR SPEED'
[SOURCE: BusinessWeek, AUTHOR: Rachael King]
The prospect of a recession is not keeping San=20
Antonio-based AT&T -- or rivals, for that matter=20
-- from pressing ahead with multibillion-dollar=20
plans to install gear that will provide a raft of=20
new television and high-speed Internet services=20
to neighborhoods across the country. Economic=20
slowdown or not, AT&T and its ilk are under=20
pressure to provide ever faster Web access and TV=20
products as they contend with cable companies=20
such as Comcast encroaching on phone company turf=20
with their own flavors of phone and Internet=20
access. "Irrespective of a recession, there is a=20
growing need for speed that is raising the stakes=20
for broadband providers," says Craig Moffett, an=20
analyst at Sanford C. Bernstein in New York. "I=20
don't think there is much chance that the telcos=20
will pull back on their network deployments. That=20
ship has already sailed." During the telecom bust=20
in the early part of the decade, communications=20
service providers slashed budgets, trimming=20
capital expenditures by 30% in 2002 alone.=20
Analysts don't expect comparable reductions this=20
time around, noting that competitive pressures=20
make network upgrades essential. "The impact of=20
that recession was as much related to technology=20
over-investment, whereas now technology isn't the=20
cause=97it's being impacted," says Todd Rosenbluth, equity analyst at S&P.
http://www.businessweek.com/technology/content/jan2008/tc20080127_181692...
m?campaign_id=3Drss_tech

BUSH LOOKS TO BEEF UP PROTECTION AGAINST CYBERATTACKS
[SOURCE: Wall Street Journal, AUTHOR: Siobhan Gorman siobhan.gorman( at )wsj.com]
President Bush has promised a frugal budget=20
proposal next month, but one big-ticket item is=20
stirring controversy: an estimated $6 billion to=20
build a secretive system protecting U.S.=20
communication networks from attacks by=20
terrorists, spies and hackers. Administration=20
officials and lawmakers say that the prospect of=20
cyberterrorists hacking into a nuclear-power=20
plant or paralyzing Wall Street is becoming=20
possible, and that the U.S. isn't prepared. This=20
is "one area where we have significant work to=20
do," Homeland Security Secretary Michael Chertoff=20
said. The White House's proposal has already=20
dismayed lawmakers concerned about=20
civil-liberties violations. Democratic lawmakers=20
are also frustrated by what they see as the White=20
House's refusal to provide details of the=20
program, and say that could threaten the fate of the initiative.
http://online.wsj.com/article/SB120147963641320851.html?mod=3Dtodays_us_...
e_one
(requires subscription)

STUDY SHOWS eBAY BUYERS SAVE BILLIONS OF DOLLARS
[SOURCE: Reuters, AUTHOR: Eric Auchard]
Buyers save billions of dollars each year bidding=20
on eBay auctions, according to a new study that=20
quantifies the benefits online consumers enjoy=20
over and above what is derived by sellers, or=20
eBay itself. The independent research by two=20
statisticians from the University of Maryland's=20
Robert H. Smith School of Business found buyers=20
saved $7 billion that they might have otherwise=20
been ready to pay in a study of eBay auction=20
behavior in 2003. Applying the same analysis to=20
2004 buyer data, consumers saved $8.4 billion,=20
said Wolfgang Jank, one author of the study. A=20
linear projection of the research findings would=20
mean consumers saved around $19 billion during 2007, Jank said.
http://www.reuters.com/article/internetNews/idUSN2742167120080128

QUICKLY

PHONE GIANTS' RISING RATES QUESTIONED
[SOURCE: USAToday, AUTHOR: Leslie Cauley]
AT&T and Verizon are raising prices for caller ID=20
and other popular phone services by as much as=20
300%, even as they continue to push regulators to=20
loosen up because of increased competition. AT&T=20
and Verizon have argued they need pricing=20
flexibility to compete with cable TV and others=20
offering Internet-based phone services. Dozens of=20
states have acquiesced, giving carriers freedom=20
to jack up prices. Mindy Spatt, communications=20
director of The Utility Reform Network (TURN), a=20
consumer advocacy group in California, says the=20
increases speak to the market power of AT&T and=20
Verizon. In truly competitive markets, "Prices go down, not up," she says.
http://www.usatoday.com/printedition/money/20080128/1b_att28.art.htm

FCC: 8M WIRELESS USERS KEEP CELL NUMBERS
[SOURCE: Associated Press, AUTHOR: Bruce Myerson]
Nearly 8 million mobile phone users have switched=20
carriers and kept their cell numbers since a new=20
rule allowing that flexibility went into effect=20
one year ago, according to the Federal=20
Communications Commission. Almost 750,000 more=20
people have moved either a home or office phone=20
number to a cell phone, the FCC said Wednesday on=20
the one-year anniversary of the agency's "number=20
portability" order. The agency reported that by=20
the end of October, 8.5 million people had taken=20
advantage of the rule which took effect in the=20
nation's 100 biggest markets on Nov. 24, 2003.=20
That includes 7.8 million who switched from one=20
cell phone company to another. The FCC also=20
revealed that the pace picked up significantly=20
when the rules were extended nationally to=20
include smaller and rural markets in late spring,=20
jumping from roughly 700,000 customer switches in=20
March, April and May to more than 1 million in=20
June and 950,000 in July. The figures suggest=20
that millions of cell phone users may have been=20
frustrated with their cell phone service but were=20
hesitant to switch providers because they didn't=20
want to give up a phone number which was familiar=20
to friends, business associates and family.=20
However, the tally is well short of many=20
forecasts issued a year ago, some of which=20
predicted that up to 30 million people might=20
switch carriers in the first year.
http://www.newsday.com/technology/wire/sns-ap-keeping-cell-numbers,0,237...
2.story

BUNDLING TELECOM SERVICES BEST FOR FREQUENT USERS
[SOURCE: Chicago Tribune, AUTHOR: Gregory Kapp]
Growing competition between cable TV and phone=20
companies, which sometimes team with satellite TV=20
firms, has led to sweeter telecommunications=20
deals recently. It has made bundles worth=20
considering. In fact, for heavy users who want=20
the most robust services, bundles can be a big money saver.
http://www.chicagotribune.com/business/yourmoney/chi-ym-spending-0127jan...
0,4348603.story?track=3Drss

VONAGE SUES NEBRASKA PCS FOR FEE ON INTERNET CALLS
[SOURCE: Associated Press]
Internet-calling company Vonage is suing to try=20
to prevent Nebraska from forcing its customers to=20
pay a state telephone fee. In a lawsuit filed in=20
U.S. District Court, Vonage says the Nebraska=20
Public Service Commission and its officials=20
should not force it to pay into the state's=20
Universal Service Fund. That fund helps subsidize=20
phone and Internet services to poor and rural=20
areas, schools and libraries. Vonage cites=20
federal court rulings in recent years that said=20
Minnesota cannot subject Vonage to state telephone regulations and fees.
http://www.kotatv.com/Global/story.asp?S=3D7775221&nav=3Dmenu411_2

THE 'S' STANDS FOR SHAM
[SOURCE: Los Angeles Times, AUTHOR: Joseph Mailander]
[Commentary] Proposition S, the "Reduction of=20
Tax Rate and Modernization of Communications=20
Users Tax," actually extends and potentially=20
expands Los Angeles' tax on communication=20
technologies, mostly with cellphones in mind. It=20
also gives the city the right to collect taxes=20
that two courts have found it couldn't collect=20
without your approval. Until the voters=20
demonstrate that they will not vote propositions=20
up or down on the strength of their titles alone,=20
the city will send them fraudulently titled,=20
bad-faith ballot measures into perpetuity.
http://www.latimes.com/news/printedition/opinion/la-oe-mailander28jan28,...
46608.story
(requires registration)

NO BREAKING FOR COMMERCIALS
[SOURCE: Los Angeles Times, AUTHOR: Thomas S. Mulligan]
As media-savvy young audiences build ever=20
stronger resistance to conventional advertising,=20
brave scientists in our entertainment=20
laboratories are developing powerful new strains=20
of commercial messages. There is, at present, no=20
cure for conditions such as cognitive rejection=20
-- "zoning out," in laymen's terms -- but with=20
the billions of dollars being poured into ad=20
budgets, there at least is hope of a breakthrough=20
that could enable marketers to connect with their target demographic.
http://www.latimes.com/business/printedition/la-fi-mtvads28jan28,1,44660...
story
(requires registration)

CHINA VOWS TO CRACK DOWN ON INTERNET PIRACY
[SOURCE: Reuters, AUTHOR: Kate Holton]
China vowed on Sunday to improve the "grave=20
situation" of music piracy in the country, as it=20
hosted an annual music industry event to learn=20
and exchange ideas with companies from around the world.
http://www.reuters.com/article/internetNews/idUSL2716617820080127
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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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