June 24, 2008 (Universal Service)
BENTON'S COMMUNICATIONS-RELATED HEADLINES for TUESDAY JUNE 24, 2008
The House Telecom Subcommittee discusses Universal Service reform today (see story below and more at http://energycommerce.house.gov/cmte_mtgs/110-ti-hrg.062408.Witness.List...) For this and other upcoming media policy events see http://www.benton.org/calendar/2008/6
INTERNET/BROADBAND
The Future of Universal Service is Broadband
Supreme Court to hear AT&T antitrust case
Study: 44% Of Internet Traffic Is Peer-to-Peer
Online bandwidth hogs to be cut off at trough?
Technology Leaders Favor Online ID Card Over Passwords
Whats Obscene? Google Could Have an Answer
BROADCASTING/CABLE
Iowa Broadcasters to Martin: This Is Localism
Cable Channels Gain on Broadcast Networks
Tough economy might be good for broadcast TV
Kohl to FCC: Tighten Program-Access Rules
July 18 Deadline for Cross-Ownership Move Requests
Japan lags on digital TV, study finds
QUICKLY -- Martin Unhappy with FCCs Verizon Decision; Mirror Awards Announced -- Russert Honored; Knight, Tow aim to save newspapers; Who You Running With? Campaign Coverage June 16-22
INTERNET/BROADBAND
THE FUTURE OF UNIVERSAL SERVICE IS BROADBAND
[SOURCE: Benton Foundation, AUTHOR: Charles Benton]
[Commentary] On Tuesday, a House hearing will consider the future of communications in America. The question of the day is whether America's future communications system should be based on 19th century technology - the telephone - or on 21st century digital broadband. In determining how to modernize the multi-billion dollar annual Universal Service Fund (USF), created to bring telecommunications services to all Americans, policymakers must come to grips with the fact that the copper wire telephone system - once the foundation of our communications networks - is now holding us back. The future of telecommunications in America is access to high-speed Internet or broadband. Reform of the USF is essential to making that access a reality. The House Subcommittee on Telecommunications and the Internet is holding a hearing titled, The Future of Universal Service: To Whom, By Whom, For What, and How Much? These are critical questions that deserve future-focused answers: 1) The future is broadband. 2) To whom should broadband reach? Everyone. 3) By whom should broadband be deployed? By any willing company. 4) For what reason do we support broadband deployment? For a more competitive and better America. 5) How much should we spend on broadband deployment? No more than we're spending now. Its time to transition the universal service program to broadband and set a national goal of making broadband Internet service available and affordable to all Americans.
http://benton.org/node/14876
* Hearing witness list
http://energycommerce.house.gov/cmte_mtgs/110-ti-hrg.062408.Witness.List...
SUPREME COURT TO HEAR AT&T ANTITRUST CASE
[SOURCE: InfoWorld, AUTHOR: Stephen Lawson]
The Supreme Court has agreed to hear an antitrust case that alleges AT&T squeezed out small ISPs by charging too much for wholesale access to its phone network. The case was heard in the U.S. District Court for the Central District of California and appealed to the U.S. Court of Appeals for the Ninth Circuit. AT&T appealed the case to the Supreme Court, and in May, the solicitor general of the United States filed a brief in support of having it heard there. On Monday, the Supreme Court agreed to hear the case. In 2003, linkLine Communications and other small California ISPs sued predecessors of AT&T in a federal district court in Los Angeles and said they were forcing small competitors out of business by setting wholesale prices too high. "It's one of those cases where the wholesale price is higher than the retail price, which makes competition virtually impossible," said Maxwell Blecher of the law firm Blecher & Collins, which is representing the plaintiffs. The issue is whether this type of dispute, in a regulated industry, is covered by antitrust law. It's also likely the Supreme Court will tackle the question of whether AT&T could violate antitrust law without setting its retail prices below its own cost.
http://www.infoworld.com/article/08/06/23/Supreme_Court_to_hear_ATT_anti...
STUDY: 44% OF INTERNET TRAFFIC IS PEER-TO-PEER
[SOURCE: Multichannel News, AUTHOR: Todd Spangler]
According to a survey by Sandvine, a vendor of bandwidth-management systems, the three biggest overall generators of Internet traffic according to Sandvines May survey were: peer-to-peer file sharing (43.5%); Web browsing (27.3%); and streaming media (14.8%). Other applications, ranked by overall usage, were: tunneling into private networks (5.9%); newsgroups (5.6%); online games (1.4%); and voice over IP (0.2%). P2P accounted for an even bigger portion of upstream direction, consuming more than twice as much traffic as all other traffic combined. The three biggest traffic generators in the upstream direction are peer-to-peer file sharing (75.0%); tunneling (9.9%); and Web browsing (9.1%). Downstream traffic was also primarily generated by P2P (35.6%), followed by Web browsing (31.6%) and streaming (17.9%). Sandvine plans to make the report available on its Web site (http://www.sandvine.com/) Wednesday.
http://www.multichannel.com/article/CA6572401.html?nid=4262
ONLINE BANDWIDTH HOGS TO BE CUT OFF AT TROUGH?
[SOURCE: San Francisco Chronicle, AUTHOR: Ryan Kim]
The era of carefree, unlimited Internet browsing and downloading might be coming to an end. Industry leaders Comcast and Time Warner Cable have started testing traffic-metering and management techniques that seek to rein in heavy usage, and AT&T says such limits are inevitable for the most extreme users of its network. That means that for the first time since the era of dial-up access, Internet providers are looking to count how many bytes a customer uses, potentially ending or significantly altering the practice of all-you-can-eat broadband consumption. The providers say the initiatives - which are only tests at this point - are aimed at a certain subset of heavy users who consume an inordinate amount of bandwidth, threatening the performance of the network for other customers. Time Warner said the top 5 percent of users, largely peer-to-peer file sharers, consume more than half its capacity. Likewise, AT&T said 5 percent of its users consume about 46 percent of its bandwidth. But critics are worried that the limits may eventually stifle Internet consumption and frustrate technology innovations that have created an Internet economy upon which many have come to rely. "The message is we're maintaining a scarcity and we'll charge you for this scarce resource, but that's not a good model for infrastructure," said Ben Scott, policy director for Free Press, a media advocacy group.
http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2008/06/23/BU9V11CIVA.DTL
TECHNOLOGY LEADERS FAVOR ONLINE ID CARD OVER PASSWORDS
[SOURCE: New York Times, AUTHOR: Laurie Flynn]
Microsoft, Google and PayPal are among the founders of an industry organization that hopes to solve the problem of password overload among computer users. The Information Card Foundation is an effort to create a single industrywide approach to managing identity online that promises to reduce drastically the use of passwords and create a system that is less vulnerable to fraud. The idea is to bring the concept of an identity card, like a drivers license, to the online world. Rather than logging on to sites with user IDs and passwords, people will gain access to sites using a secure digital identity that is overseen by a third party. The user controls the information in a secure place and transmits only the data that is necessary to access a Web site. In addition to simplifying online shopping, such information cards will reduce the number of phishing incidents that is, the fraudulent use of someones identity to gain access to financial records.
http://www.nytimes.com/2008/06/24/technology/24card.html?ref=todayspaper
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WHAT'S OBSCENE? GOOGLE COULD HAVE AN ANSWER
[SOURCE: New York Times, AUTHOR: Matt Richtell]
Judges and jurors who must decide whether sexually explicit material is obscene are asked to use a local yardstick: does the material violate community standards? That is often a tricky question because there is no simple, concrete way to gauge a communitys tastes and values. The Internet may be changing that. In a novel approach, the defense in an obscenity trial in Florida plans to use publicly accessible Google search data to try to persuade jurors that their neighbors have broader interests than they might have thought. In the trial of a pornographic Web site operator, the defense plans to show that residents of Pensacola are more likely to use Google to search for terms like orgy than for apple pie or watermelon. The publicly accessible data is vague in that it does not specify how many people are searching for the terms, just their relative popularity over time. But the defense lawyer, Lawrence Walters, is arguing that the evidence is sufficient to demonstrate that interest in the sexual subjects exceeds that of more mainstream topics -- and that by extension, the sexual material distributed by his client is not outside the norm.
http://www.nytimes.com/2008/06/24/technology/24obscene.html?hp
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BROADCASTING/CABLE
IOWA BROADCASTERS TO MARTIN: THIS IS LOCALISM
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
Iowa Broadcasters Association Executive Director Sue Toma has written Federal Communications Commission Chairman Kevin Martin to let him know that some broadcasters there have been going 24/7 with commercial-free coverage of the devastating flooding while they help to marshal volunteer efforts and battle flood waters themselves. "I can't help but note that the Iowa floods come at a time when well-meaning but misguided activists are questioning broadcasters' commitment to localism," she wrote. The answers to those questions, she suggested, could be found in Iowa, where "many" broadcasters have "once again proven their commitment to the communities that we serve," capping it off with the assertion: "This is our finest hour."
http://www.broadcastingcable.com/article/CA6572551.html?rssid=193
* IBA letter
http://www.nab.org/xert/corpcomm/pressrel/releases/062008_IBA_Martin.pdf
CABLE CHANNELS GAIN ON BROADCAST NETWORKS
[SOURCE: New York Times, AUTHOR: Brian Stelter]
Preliminary figures for advance sales indicate that the cable channels will collectively sell about $8 billion in airtime to advertisers this season, up 7 to 8 percent from last years total. By contrast, the broadcast networks sold about $9.1 billion to $9.2 billion, up about 1 percent over last season. The shift in advertising dollars from broadcast to cable is not new, but it is particularly pronounced this year. There are several explanations, analysts say, including the fact that the most popular cable channels on their best nights, now attract nearly as many viewers as some of the less popular broadcast networks. Over all, the ratings gap, once vast, has been gradually narrowing. While all the broadcasters, save for Fox, posted significant ratings declines in the television season that ended in May, many cable networks are setting new ratings records. But ratings are not the only explanation. Other factors include the increasing fragmentation in media, which forces advertisers to place more bets in different places; the development of new niche channels, which can siphon ad dollars away from general-interest programming; and last winters writers strike, which made the fresh content available on cable look more attractive.
http://www.nytimes.com/2008/06/24/business/media/24adco.html?ref=todaysp...
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TOUGH ECONOMY MIGHT BE GOOD FOR BROADCAST TV
[SOURCE: Reuters, AUTHOR: Nellie Andreeva]
In uncertain times, Americans cling to their TVs. For those putting their dreams for a new home and car on hold, a flat-screen TV seems like a comforting alternative. The share of consumers planning to buy a TV set in the next six months hit an all-time high of 12.2 percent in May. "Households now seem bent on cocooning by staying at home to watch television rather than drive to the local theater and shell out more than $11 to watch a film (and an extra $5 on gas to get there)," Merrill Lynch economist David Rosenberg wrote recently. "Travel plans have sunk to their lowest in 30 years, so what else is there to do but stay home and watch TV?"
http://www.reuters.com/article/entertainmentNews/idUSN2344305820080624
KOHL TO FCC: TIGHTEN PROGRAM-ACCESS RULES
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
Sen Herb Kohl (D-WI) has written Federal Communications Commission Chairman Kevin Martin to let him know the chairman of the Senate Antitrust Committee wants the FCC to toughen up its program-access rules to make sure that independent programmers don't get squeezed out of the marketplace. Chairman Kohl would like the FCC to set a "prompt and reasonable" deadline for responding to program-access complaints; to come up with a better definition of what constitutes discrimination in carriage disputes; to prevent multichannel-video providers from moving channels to a "disfavored or costly" tier during disputes, and anything else it might need to do. Sen Kohl also asked the FCC to adopt rules to prevent program tying that disfavors independent programmers.
http://www.broadcastingcable.com/article/CA6572356.html?rssid=193
JULY 18 DEADLINE FOR CROSS-OWNERSHIP MOVE REQUESTS
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
The Ninth Circuit Court of Appeals gave broadcasters and media activists until July 18 to file their requests for moving the appeal of the Federal Communications Commission's decision to loosen the ban on newspaper-broadcast cross-ownership. Oppositions to those requests for transfer are due Aug. 14.
http://www.broadcastingcable.com/article/CA6572654.html?rssid=193
JAPAN LAGS ON DIGITAL TV, STUDY FINDS
[SOURCE: Variety, AUTHOR: Mark Schilling]
With three years until the analog signal is switched off, only 43.3% of TV households in Japan own TVs able to receive digital broadcasts, according to a report released by the National Assn. of Commercial Broadcasters in Japan (NAB). However, only 34.8% of TV households are actually able to watch digital broadcasts, meaning that many with digital-ready sets cannot yet tune into digital broadcasts. The figures come from a NAB survey of 18,000 TV households conducted in March, with an 80.2% response rate. The far north and south of the country have the lowest digital diffusion rates -- not surprising since both areas are among the most economically depressed. According to the survey, 61% of households with annual incomes of 10 million yen ($93,210) had a digital TV, while only 24.2% of households with incomes of $18,550 or less had a digital TV.
http://www.variety.com/article/VR1117987966.html?categoryid=14&cs=1&nid=...
QUICKLY
MARTIN UNHAPPY WITH FCC'S VERIZON DECISION
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
Federal Communications Commission Chairman Kevin Martin has written a statement to let everyone know he is not happy with the announcement Saturday that a bipartisan majority of the commission overturned his staff's decision rejecting a cable challenge to Verizon Communications marketing practices. "I am concerned that todays decision promotes regulatory arbitrage and is outcome-driven," he said. It could thwart competition, harm rural America and frustrate regulatory parity. Therefore, I must dissent from todays decision. Chairman Martin said it was "arbitrary," "capricious" and "indefensible" to say that cable companies are telecommunications carriers for the purposes of voice over Internet protocol, but not otherwise.
http://www.broadcastingcable.com/article/CA6572339.html?rssid=193
MIRROR AWARDS ANNOUNCED -- RUSSERT HONORED
[SOURCE: Editor&Publisher, AUTHOR: ]
Joseph Nocera of The New York Times and Ken Auletta of The New Yorkers were among the winners of the annual Mirror Awards. The late Tim Russert, as was planned months ago, was honored with the Fred Dressler Lifetime Achievement Award. NBC anchor Brian Williams accepted it for him and delivered a brief tribute. The awards, sponsored by the S.I. Newhouse School of Public Communications at Syracuse University, went to Nocera for Best Commentary, Auletta for Best Single Article, Jeff Coplon for Best Profile in New York Magazine, a team from Frontline (PBS) for Best Investigative Piece, and The New York Times' Monday media section for Overall Excellence.
http://www.editorandpublisher.com/eandp/news/article_display.jsp?vnu_con...
* Murdoch Top of Mind at Mirror Awards (Broadcasting&Cable)
http://www.broadcastingcable.com/blog/60000406/post/1140028714.html?nid=...
KNIGHT, TOW AIM TO SAVE NEWSPAPERS
[SOURCE: C-Net|News.com, AUTHOR: Stephanie Olsen]
Hurt by declining ad sales and cutbacks, local newspapers have seen better days. That's why at least two charitable organizations are funding projects designed to spur innovation in journalism and ensure people's access to regional news. On Monday, the John S. and James L. Knight Foundation said it will spend $24 million over five years to fund challenges for innovation involving access to local information. Its project, called the Knight Community Information Challenge, asks community foundations across the country to propose new ideas on how to serve people information on their local area. Also Monday, philanthropist Leonard Tow said he would donate $8 million to two colleges toward the study of ensuring the survival of newspapers on the Web and training new-media journalists. His foundation, the Tow Foundation, pledged $5 million to Columbia University's Graduate School of Journalism and $3 million to the City University of New York's Graduate School of Journalism.
http://news.cnet.com/8301-10784_3-9975760-7.html?part=rss&subj=news&tag=...
WHO YOU RUNNING WITH?
[SOURCE: Project for Excellence in Journalism, AUTHOR: Mark Jurkowitz]
A key narrative in last weeks campaign focused not on Barack Obama and John McCain themselves, but on two people whose public roles reflect crucial challenges facing the candidates -- Michelle Obama and George Bush. Since Obama is a relatively unknown quantity to many Americans, his wife, Michelle, is virtually certain to be scrutinized for clues to his character and philosophy. She may come to represent a proxy for whether Obama can establish a comfort factor with enough voters to win the White House. For McCain, the challenge is whether he is too closely tied to an unpopular incumbent President in George W. Bush. Both of those storylines were evident last week in the coverage. The role of Michelle Obama filled 9% of the campaign newshole, according to PEJs Campaign Coverage Index for June 16-22. And President Bushs relationship with the GOP hopeful filled another 7% of the newshole.
http://www.journalism.org/node/11632