March 2008

GOVERNMENT & COMMUNICATIONS
FISA Update
White House E-Mail Battle Heats Up
Chinese Internet censorship code of conduct in the works

ELECTIONS & MEDIA
Web gets a workout as bloggers and others follow story
Internet Congregation Responds in Many Voices

FCC REFORM
Inclusion or Illusion? An Analysis of the FCC's=20
Public Hearings on Media Ownership

SPECTRUM AUCTION
FCC spectrum auction is completed with $19.6 bln in bids
Assessing success in the FCC's 700MHz auction

INTERNET/BROADBAND
Is the U.S. really so terribly behind in broadband?
Despite Economy, Web Will Grow in '08

JOURNALISM
Credible Web? It's where we click most
How local TV embraced fake news

QUICKLY -- Report predicts mass adoption of pay=20
HDTV services by U.S. households; News Corp.'s=20
Fox Passes CBS as Most-Watched Network; Journal=20
to buy Tucson TV station; Verizon not upfront on contract terms

GOVERNMENT & COMMUNICATIONS

FISA UPDATE
[SOURCE: Talking Points Memo, AUTHOR: Paul Kiel]
[Commentary] The administration threw everything=20
it had at the Democrats. Statement after=20
statement after statement on the White House=20
lawn. TV ads, web ads. Letters from the attorney=20
general and director of national intelligence=20
raising the alarm about the danger the country is=20
in. Even a TV appearance by the DNI himself to=20
highlight the "increased danger." And what did it=20
get them? At the end of last week, nearly a month=20
after the Protect America Act lapsed, the House=20
passed a bill that does not contain retroactive=20
immunity -- the bill even contains a provision=20
that dispenses with the administration's main=20
legal argument for blocking the lawsuits, the=20
state secrets privilege. So what now? No one on=20
the Democratic side of the aisle seems to have=20
bought the administration's line that the lapse=20
of the Protect America Act is cause for concern.=20
Wiretaps authorized by that law can go until=20
August of this year. Wiretaps of new targets=20
would have to be authorized under the old FISA=20
law. But the authorities granted by the PAA are=20
so broad (it authorizes wiretaps of entire=20
terrorist groups) that as of two weeks after the=20
law's lapse, no warrants of wiretaps for new=20
targets had yet been required. That makes the=20
administration's claim that such warrant requests=20
will create a mountain of paperwork look pretty silly.
http://tpmmuckraker.talkingpointsmemo.com/2008/03/todays_must_read_298.php

WHITE HOUSE E-MAIL BATTLE HEATS UP
[SOURCE: ABC News, AUTHOR: Justin Rood]
The White House has three days to explain why it=20
shouldn't be required to copy its computer hard=20
drives to ensure no further e-mails are lost, a=20
federal judge ordered Tuesday. Already, e-mails=20
between March and October 2003 appear to have=20
been lost, Judge John M. Facciola noted, because=20
they were improperly archived and no backup=20
copies exist. That period includes the U.S.=20
invasion of Iraq. E-mails by White House staff=20
are considered part of the nation's historical=20
record, and federal law requires they be=20
preserved. The White House has admitted that=20
potentially millions of e-mails from the past=20
eight years have been erased, although it has=20
provided conflicting accounts on how many may=20
still exist on backup tapes. The order, issued=20
Tuesday morning by a federal magistrate judge in=20
Washington, D.C., comes in a case brought against=20
the Bush administration by the National Security=20
Archive, a nonpartisan group affiliated with George Washington University.
http://abcnews.go.com/Blotter/story?id=3D4473451&page=3D1

CHINESE INTERNET CENSORSHIP CODE OF CONDUCT IN THE WORKS
[SOURCE: InfoWorld, AUTHOR: Martyn Williams]
A code of conduct addressing how major Internet=20
service providers and portal operators should=20
deal with Internet censorship in China is in the=20
final stages of preparation by Human Rights Watch=20
and the providers, the head of the human rights=20
pressure organization said Tuesday. The code is=20
due in the next couple of months and comes in the=20
run up to the Beijing Olympic Games that begin in August.
http://www.infoworld.com/article/08/03/18/Chinese-Internet-censorship-co...
of-conduct-in-the-works_1.html?source=3DNLC-GOV&cgd=3D2008-03-18

ELECTIONS & MEDIA

WEB GETS A WORKOUT AS BLOGGERS AND OTHERS FOLLOW STORY
[SOURCE: USAToday, AUTHOR: Martha T. Moore]
Sen. Barack Obama's speech Tuesday on race and=20
his former pastor's controversial remarks lit up=20
the Internet on a day when the story competed=20
with a surging stock market and a political sex=20
scandal in New York. According to Technorati, a=20
website that tracks blog postings, there were=20
about 1,300 posts if "Obama race" was placed in=20
the search engine. Still, Obama's race speech was=20
not among the most popular Web posts about the=20
Illinois senator. For example, there were about=20
10,000 posts about Obama on Feb. 25, Technorati=20
research shows. That was the day a photograph of=20
the Democratic presidential candidate in=20
traditional Somali dress was posted on the Drudge=20
Report. The Drudge Report, a popular site for=20
political news, featured the text of Obama's=20
speech as its lead item all day. On the liberal=20
Huffington Post, the text of Obama's speech got=20
more than 160,000 page views. By late Tuesday,=20
stories about Obama's speech were the most-viewed=20
items on news sites run by The Wall Street=20
Journal and The Washington Post. By late Tuesday,=20
Obama's speech was the most-viewed video on=20
MSNBC.com, the second-most-viewed story on websites for ABC, CBS and CNN.
http://www.usatoday.com/printedition/news/20080319/1a_web19_dom.art.htm

INTERNET CONGREGATION RESPONDS IN MANY VOICES
[SOURCE: Washington Post, AUTHOR: Jose Antonio Vargas]
In the church of the Internet, call him the=20
preacher heard all around our YouTubing world,=20
where believers not only watch the videos of the=20
Rev. Jeremiah Wright's controversial and racially=20
charged sermons but also edit them, comment on=20
them, pass them around. And make them their own.=20
Wright's homilies -- including the one where he=20
says "God damn America" -- have taken on a new=20
life, opening up a conversation so kaleidoscopic=20
only the vastness of the Internet has room for=20
it. It's about race, Sen. Barack Obama, the=20
presidential campaign, us. One of Wright's=20
sermons was the most viewed video online in=20
recent days, according to Viral Video Chart, a=20
daily catalogue of popular videos on Google=20
Video, MySpace and YouTube. On Sunday, days after=20
Wright's remarks had been replayed on cable shows=20
and dissected in print and online, type "Wright"=20
and "Obama" on YouTube and some 300 videos popped=20
up. Another 500 videos were uploaded the next=20
day. By early Tuesday, hours before Obama=20
delivered his much-anticipated speech in=20
Philadelphia on race, the tally had risen above 900.
http://www.washingtonpost.com/wp-dyn/content/article/2008/03/18/AR200803...
3229.html
(requires registration)

FCC REFORM

INCLUSION OR ILLUSION? AN ANALYSIS OF THE FCC'S=20
PUBLIC HEARINGS ON MEDIA OWNERSHIP 2006-07
[SOURCE: Penn State University, AUTHOR: Jonathan Obar and Amit Schejter]
In 2006-2007 the Federal Communications=20
Commission held six public hearings across the=20
country in an attempt to fully involve the public=20
in a re-evaluation of the rules governing media=20
ownership in the United States. The hearings took=20
place in: Los Angeles/El Segundo, CA; Nashville,=20
TN; Harrisburg, PA; Tampa, FL; Chicago, IL; and=20
Seattle, WA. This study addresses whether the FCC=20
did indeed fully involve the public in their=20
deliberations, what the public said at the=20
hearings, and whether the public's input=20
contributed to the design of the policy. All 44=20
plus hours of the hearings were assessed, all 732=20
public comments were content analyzed and the=20
FCC's Report and Order was reviewed. The results=20
reveal that the FCC consistently hindered public=20
participation; hearing notice was often provided=20
last-minute, the hearings were held at=20
inconvenient times for working people to attend=20
and the structure of the hearings subordinated=20
public comment by providing preferential=20
treatment to experts, stakeholders and=20
dignitaries. Two hearings actually devoted more=20
time to non-public comment than to public=20
testimony. In addition, a quarter of the members=20
of the public registered to speak left before=20
testifying likely due to the structure and length=20
of the hearings. Of the 732 that did speak, 52.6=20
percent were against media consolidation and/or=20
deregulation, while only 1.4 percent were in=20
support. The final Report & Order reflects the=20
same subordination as hardly any reference is=20
made to public comment from the hearings, even=20
though the hearings themselves are highlighted in=20
the report as a groundbreaking element in the rulemaking process.
http://papers.ssrn.com/sol3/papers.cfm?abstract_id=3D1107652

SPECTRUM AUCTION

FCC SPECTRUM AUCTION IS COMPLETED WITH $19.6 BLN IN BIDS
[SOURCE: MarketWatch, AUTHOR: Corey Boles]
A sale of communications airwaves by the federal=20
government to the commercial wireless industry=20
closed Tuesday, after 261 rounds of bidding and $19.6 billion in bids.
The end of the auction means that, within a short=20
period of time, the Federal Communications=20
Commission will reveal who the winners of the=20
valuable radio spectrum licenses are, and where=20
in the country they acquired airwaves. The final=20
price tag of $19.6 billion was considerably more=20
than the estimated $10 billion to $13 billion the=20
auction had been expected to generate. That=20
amount will be reduced somewhat once the FCC=20
applies bidding credits to smaller companies that=20
may have participated and after it removes the=20
sole national license, which didn't attract=20
sufficient interest to meet the minimum threshold=20
applied by the commission. Public Knowledge=20
President Gigi Sohn called for an investigation=20
of the auction: "The Federal Communications=20
Commission=92s spectrum auction produced some good=20
results for consumers. While the open access=20
provisions weren't all that we would have liked,=20
consumers will have the benefit of some device=20
and applications flexibility that they wouldn't=20
have had otherwise. However, the lack of activity=20
in the =91D=92 block that would have supported public=20
safety activity raises some cause for concern.=20
Following reports that Frontline dropped out of=20
the auction as a result of alleged conditions put=20
on the block by the public safety community, we=20
urge the Commission to look into the auction results."
http://www.marketwatch.com/news/story/fcc-spectrum-auction-completed-196...
ory.aspx?guid=3D%7BD5E4D5E6%2DE8BC%2D4DEC%2DA5A2%2D2C879C863511%7D&dist=3Ds=
iteid=3Drss
* FCC Auction Over: $19.5 Billion In Bids
http://www.multichannel.com/article/CA6542332.html?nid=3D4262
* FCC's wireless airwaves sales raises $19.6 billion
http://www.news.com/8301-10784_3-9897297-7.html?part=3Drss&subj=3Dnews&tag=
=3D2547-1_3-0-5
* Public Knowledge Asks FCC Investigation of Spectrum Auction
http://www.publicknowledge.org/node/1462
* FCC Chairman Martin statement:
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-280887A1.doc
* Comparison of Auction Revenues
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-280887A2.pdf
* Wireless Spectrum Auction Raises $19 Billion
http://www.nytimes.com/2008/03/19/technology/19fcc.html?ref=3Dtodayspaper
* FCC Airwaves Auction Sets Record
http://online.wsj.com/article/SB120587719371146457.html?mod=3Dtodays_us_...
ketplace
* FCC Raises Record $19.6 Billion In Auction of Wireless Airwaves
http://www.washingtonpost.com/wp-dyn/content/article/2008/03/18/AR200803...
2148.html
* Big wireless auction ends, winners still secret
http://www.reuters.com/article/technologyNews/idUSN1823350720080319

ASSESSING SUCCESS IN THE FCC'S 700MHZ AUCTION
[SOURCE: C-Net|News.com, AUTHOR: Marguerite Reardon & Anne Broache]
The Federal Communications Commission generated=20
$19.6 billion in the 700MHz spectrum that ended=20
Tuesday, but the true success of the auction will=20
take months or even years to assess. There's no=20
question that the auction, which began on January=20
24, was a monetary success for the government--it=20
raised a record $19.6 billion in 261 rounds of=20
bidding. During a conference call with reporters=20
Tuesday after the bidding closed, FCC Chairman=20
Kevin Martin said the 700MHz auction was the most=20
successful auction the agency has ever conducted,=20
raising more money than all previous auctions put=20
together, excluding the Advanced Wireless Services, or AWS, auction in 2006.
Despite the obvious financial success of the=20
auction, it will be a long time before it's clear=20
whether the FCC was successful in achieving some=20
of its broader policy goals, such as creating a=20
more open wireless marketplace and a nationwide=20
interoperable public safety wireless network. The=20
700MHz spectrum has long been considered the last=20
bit of beachfront wireless real estate left in=20
the air. The spectrum, which is being vacated by=20
the switch to digital TV in 2009, is considered=20
valuable because of inherent properties that=20
allow it to propagate over long distances and=20
penetrate walls. Some experts believe the=20
spectrum is ideal for offering robust, affordable wireless broadband servic=
es.
http://www.news.com/8301-10784_3-9897722-7.html?tag=3Dnefd.lede

INTERNET/BROADBAND

IS THE US REALLY SO TERRIBLY BEHIND IN BROADBAND
[SOURCE: C-Net|News.com, AUTHOR: Anne Broache]
On Wednesday, the Federal Communications=20
Commission will consider, and likely adopt,=20
changes to the way it measures "reasonable and=20
timely deployment of advanced services to all=20
Americans," as required by federal law. At the=20
moment, Internet service providers are required=20
to fill out forms about their service offerings=20
and submit them to the FCC semiannually. From=20
those forms, the FCC produces reports that=20
attempt to reflect on the state of Internet=20
access availability, and in recent years, they=20
have claimed to document "significant and steady=20
progress" in broadband availability nationwide.=20
But critics charge that the information the FCC=20
collects is not granular enough to be useful.=20
Judging from their statements in recent months,=20
there's consensus among the five commission=20
members, too, that some refinements are=20
necessary. Free Press, Consumers Union, and the=20
Consumer Federation of America argue that the FCC=20
should survey Americans about how much they're=20
paying for Internet service -- to compare price=20
and service menus across different locales.
http://www.news.com/8301-10784_3-9897103-7.html?part=3Drss&subj=3Dnews&tag=
=3D2547-1_3-0-5

DESPITE ECONOMY, WEB WILL GROW IN '08
[SOURCE: MediaWeek, AUTHOR: Mike Shields]
Despite headlines screaming mortgage crisis,=20
inflation and possible recession, things are=20
still looking up for online advertising, says a=20
new report coming later this month from=20
eMarketer. The Web researcher is confident that=20
U.S. online spending will surge by a healthy 23=20
percent in 2008 to $25.9 billion, despite fears=20
of overall economic fallout. That=92s slower growth=20
than in recent years, says the firm, but still=20
indicative of an ongoing shift of media dollars=20
to the Internet. eMarketer predicts that overall=20
media spending will climb by just 3.3 percent in 2008.
http://www.mediaweek.com/mw/news/recent_display.jsp?vnu_content_id=3D100...
7162
* Web ad spending forecast revised with economic woes
http://www.reuters.com/article/internetNews/idUSN1822642220080318

JOURNALISM

CREDIBLE WEB? IT'S WHERE WE CLICK MOST
[SOURCE: The Christian Science Monitor, AUTHOR: Tom Regan]
[Commentary] Newsweek recently published a story=20
called "Revenge of the Expert." It argued that=20
expertise would be the main component of "Web=20
3.0." "The wisdom of the crowds has peaked," says=20
Jason Calacanis, founder of the Maholo=20
"people-powered search engine" and a former AOL=20
executive. "Web 3.0 is taking what we've built in=20
Web 2.0 =96 the wisdom of the crowds =96 and putting=20
an editorial layer on it of truly talented,=20
compensated people to make the product more=20
trusted and refined." Well, yes and no. Sure, it=20
is important for people to trust the information=20
they find online. And as the Newsweek article=20
argues, the need for people to find trusted=20
information online is increasing, thus the need=20
for more expertise. But the article fails to=20
mention the most important feature of the world=20
of digital information. It's not expertise =96 it's=20
choice. In many cases the sites that people come=20
to trust are built on nontraditional models of=20
expertise. Look at sites like Digg.com,=20
Reddit.com, or Slashdot.com. There, users provide=20
the expertise on which others depend. When many=20
users select a particular story, that story=20
accumulates votes of confidence ("diggs" in the=20
case of digg.com), which often lead other users=20
to choose that story. The choices of the=20
accumulated community are seen as more=20
trustworthy than the "gatekeeper" model of=20
traditional news and information. Sometimes such=20
sites highlight great reporting from traditional=20
media. But often they bring forward bits of=20
important information that are ignored (or=20
missed) by "experts." It's sort of the "open=20
source" idea of information =96 a million eyes=20
looking on the Web for information is better than a few.
http://www.csmonitor.com/2008/0319/p17s01-stct.html

HOW LOCAL TV EMBRACED FAKE NEWS
[SOURCE: Salon, AUTHOR: Farhad Manjoo]
A look at the pervasiveness of video news=20
releases (VNRs), short clips of marketing=20
propaganda produced in the language and style of=20
real news and aired as part of local broadcast TV=20
newscasts. P.R. firms send news stations=20
thousands of such videos every year, the most=20
sophisticated of which are virtually=20
indistinguishable from honest news, featuring=20
interviews with (paid) experts and voice-overs by=20
(fake) reporters who subtly pitch products during=20
their narratives. Surprisingly often, news=20
channels broadcast these videos as real news;=20
many times, the Center for Media and Democracy=20
has found, the only edits that a station will=20
make to a paid clip is to cut off the disclosure=20
noting that the video was sponsored by a=20
corporation. Late last year, the FCC began=20
cracking down on the practice, levying fines=20
against Comcast, which owns CN8, a Philadelphia=20
station that has aired VNRs. But CMD, which=20
continues to monitor stations, found that the practice continues.
http://machinist.salon.com/feature/2008/03/19/true_enough_excerpt_3/inde...
tml

QUICKLY

REPORT PREDICTS MASS ADOPTION OF PAY HDTV SERVICES BY US HOUSEHOLDS
[SOURCE: Broadcast Engineering]
More than 47 million households in the United=20
States will pay for some type of HDTV service by=20
the end of 2008 =97 an increase of 17 million homes=20
from the level at the end of 2007, according to a=20
new forecast from Pike & Fischer. The forecast,=20
part of the new Pike & Fischer "HDTV Service:=20
Market Forecast for Multichannel Video Providers"=20
report, also predicts that by the end of 2012, up=20
to 103 million households will pay a multichannel=20
video provider for some form of HD service or=20
rental equipment. Although the broadcast networks=20
now air their programs in HD for free, cable=20
operators, satellite TV providers and telephone=20
companies are striving to make money off the=20
public's appetite for HD video by offering HD=20
premium channels, leasing HD-ready equipment and=20
selling on-demand movies and TV shows in HD format.
http://broadcastengineering.com/hdtv/mass_adoption_hdtv_0318/

NEWS CORP'S FOX PASSES CBS AS MOST-WATCHED NETWORK
[SOURCE: Bloomberg, AUTHOR: Gillian Wee]
News Corp.'s Fox passed CBS as the most-watched=20
television network after its "American Idol"=20
singing contest topped ratings and the Hollywood=20
writers strike limited competition from scripted=20
shows. Fox's 6.8 rating among U.S. households in=20
primetime for the season through March 16=20
snatched the lead from CBS Corp., according to=20
Nielsen Media Research. CBS has been first for five consecutive seasons.
http://www.bloomberg.com/apps/news?pid=3Dnewsarchive&sid=3Dacpl3EwIwyBI

JOURNAL TO BUY TUCSON TV STATION
[SOURCE: The Business Journal of Milwaukee]
Journal Communications of Milwaukee will buy=20
KWBA-TV which serves the Tucson (AZ) market.=20
Journal Broadcast Group owns ABC affiliate=20
KGUN-TV in Tucson as well as four radio stations.=20
In all, Journal Communications owns the Milwaukee=20
Journal Sentinel, 35 radio stations and 11 television stations.
http://www.bizjournals.com/milwaukee/stories/2008/03/17/daily26.html?ana...
from_rss

VERIZON NOT UPFRONT ON CONTRACT TERMS
[SOURCE: Los Angeles Times, AUTHOR: David Lazarus]
For years, credit card issuers have gotten away=20
with withholding contracts from customers until=20
they actually have the plastic in their hands --=20
a practice that denies many people a fair chance=20
to look under the hood for onerous terms and=20
conditions. Now it looks like Verizon has adopted=20
the same technique. Some aspects of the bundle=20
service agreement are included in the order form=20
customers fill out before FiOS installation=20
begins. For example, there's fleeting mention of=20
an "up to $199 early termination charge." But=20
without reading the full contract, you wouldn't=20
know that the termination fee applies even if you=20
cancel just one part of your package -- only TV,=20
say -- without agreeing to a whole new package.=20
You also wouldn't know that you're waiving the=20
right to sue Verizon in court and are instead=20
agreeing to settle any disputes via arbitration.=20
And you wouldn't know that you're agreeing to be=20
subject to Virginia state law for the purposes of=20
the contract, which the agreement neglects to=20
mention is one of the few states that doesn't=20
allow consumers to file class-action lawsuits.=20
Although the online terms of service can be=20
readily accessed on Verizon's website, the bundle=20
service agreement can be viewed only after a FiOS=20
customer receives a user name and password from the company.
http://www.latimes.com/business/printedition/la-fi-lazarus19mar19,1,5624...
.column
(requires registration)
--------------------------------------------------------------
Communications-related Headlines is a free online=20
news summary service provided by the Benton=20
Foundation (www.benton.org). Posted Monday=20
through Friday, this service provides updates on=20
important industry developments, policy issues,=20
and other related news events. While the=20
summaries are factually accurate, their often=20
informal tone does not always represent the tone=20
of the original articles. Headlines are compiled=20
by Kevin Taglang headlines( at )benton.org -- we welcome your comments.
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