October 2008

Sprint Nextel to Keep Push-to-Talk Network

Sprint Nextel yesterday appeared to call a halt to plans to sell its iDen push-to-talk network, saying it intends to refocus on the technology it inherited with the company's acquisition of the carrier. In a statement, Sprint chief executive Dan Hesse said that after careful review of the business, the company has decided to renew its commitment to the technology that is popular among cab drivers and other business users for its walkie talkie capabilities. Analysts said the announcement illustrates the difficulty firms face with mergers and divestitures as credit dries up in the economic crisis. They read the statement as a decision to stop Sprint's divestment efforts.

VON Coalition Backs Uniform Access Rates

Like the rest of the telecom industry, the VON Coalition is looking ahead to Nov. 4, the day the FCC is slated to vote on intercarrier compensation/Universal Service Fund (ICC/USF) reform. Unlike CLECs and RLECs, however, VON Coalition members want a uniform rate - the .0007 supported by Verizon Communications Inc. and others - for access charges and reciprocal compensation. That number scares CLECs and RLECs because it's far lower than the 10 cents or less they've been collecting. But such arbitrary rates open the door to taking advantage of the system, said Jim Kohlenberger, executive director of the VON Coalition. Nonetheless, he said intercarrier comp and the USF have to be fixed - the question comes down to how. "Part of where we see the problem is that today's system, for a rural provider, it subsidizes them and if they had instead moved to broadband and voice-over-IP, they lose that subsidy - so there's actually a disincentive for them to move to broadband," he explained. "That's one of the reasons why we think the U.S. is behind in broadband deployment."

The Liberal Media and How To Stop It

[Commentary] Just two nights ago on his show, Fox News Channel's Brit Hume led panelists Fred Barnes, Morton Kondracke, and Charles Krauthammer in a discussion of the purported liberal coverage of the presidential campaign. A greater collection of like minds may never have been assembled. Hume recently told the Los Angeles Times that he's "a journalist first and a conservative second or third." Barnes is executive editor of the Weekly Standard and author of the 2006 book Rebel-in-Chief: Inside the Bold and Controversial Presidency of George W. Bush. Krauthammer is a leading conservative columnist and thinker. Kondracke's distinguishing feature is that he has no distinguishing feature—unless being a chameleon is distinguishing. And so, without any sense of irony, the conservative quartet batted around the subject of liberal media bias. Nobody had a new idea to share, and because there weren't any liberals on tap, no real critical view of the premise was aired. It was as predictable as a theological discussion among a foursome of atheists. If the folks at Fox News Channel really think that the mainstream media is doing such an awful job of reporting the 2008 campaign, they should direct their complaints to their boss, Rupert Murdoch, who owns the second-biggest newspaper in the country, the Wall Street Journal. The best press criticism isn't a column or a moan of disgust into a TV camera. It's writing a better story.

Dingell to TV News Bosses: Don't Call Election Early

House Commerce Committee Chairman John Dingell (D-MI) has written letters to the top national broadcast and cable television networks calling on them to hold off projecting the winner of the presidential election Tuesday night until all polls nationwide are closed. He said that any early naming of a winner could depress voting in the rest of the nation. Polling places in Hawaii are open until 6 p.m., which would mean that under the proposal the networks couldn't declare a winner until midnight East Coast time. Letters went to Jeff Zucker, prexy-chief exec of NBC Universal; Leslie Moonves, president of CBS Corp.; Anne Sweeney, co-chair of Disney Media Networks and president of Disney-ABC Television Group; News Corp. prexy Peter Chernin; Jim Walton, president of CNN Worldwide; Roger Ailes, chairman and chief exec of Fox News; and Phil Griffin, president of MSNBC.

Supporters lay out tech reasons to vote for Obama, McCain

Grover Norquist, president of Americans for Tax Reform and a supporter of Sen John McCain (R-AZ), squared off against Larry Irving, president and CEO of the Irving Information Group and a telecom advisor for former President Bill Clinton. Norquist largely focused on tax policy and trade policy during a morning forum hosted by the Computing Technology Industry Association (CompTIA). He often criticized Obama's proposals instead of talking about McCain's plans for tech-related issues. Irving talked about Obama's proposals to give U.S. residents more access to broadband and to open up government by using technology. At a different event, McCain adviser Douglas Holtz-Eakin was supposed to debate former Federal Communications Commission Chairman and current Obama supporter Reed Hundt. But Holtz-Eakin canceled to appear on MSNBC instead.

Obama-mercial, Daily Show Appearance Bring in Viewers

Over 33 million viewers watched a 30-minute message from Sen Barack Obama (D-IL) on Wednesday night, garnering 2.1 million more viewers on CBS, NBC and Fox combined than those three networks drew in the same half-hour last Wednesday. The combined overall household rating for the, in the top 56 local television markets where Nielsen maintains electronic TV meters, was 21.7; in comparison, the final debate between the two presidential candidates received a 38.3 household rating in the top 56 local TV markets. The candidates' first debate on September 26 received a 34.7 household rating in the top 55 markets; their second debate, on October 7, received a 42.0 household rating in those markets. Sen Obama also appeared on Comedy central's "The Daily Show." The episode attracted 3.6 million total viewers and a 2.6 household rating, besting its previous record—when Michelle Obama was a guest on Oct. 8—by 22%

"Inconvenient Truth" Director Had Hand in Obama Infomercial

Sen Barack Obama's half-hour infomercial, which drew rave reviews for production, was produced by two leaders of the campaign's ad team -- Jim Margolis of ad agency GMMB and Mark Putnam of ad agency Murphy/Putnam -- but it had some Hollywood help. Playing a role in its production was Davis Guggenheim, the Academy Award-winning director and executive producer of Al Gore's "The Inconvenient Truth." Guggenheim was a producer and director of HBO's "Deadwood" and has directed episodes of a number of TV shows.

Campaign Ads Boost TV Stations' Profits

Strong political advertising helped drive Hearst-Argyle Television's profit for the third quarter up 20 percent. The station group reported Thursday that its net income for the quarter that ended Sept. 30 increased to $11.6 million, or 12 cents per share, from third quarter 2007's $9.7 million, or 10 cents per share. Despite an 8% decrease during the third quarter in revenue from core advertising categories, LIN TV reported year-to-year increases of 5% in net revenue and 39% in operating income. Driven by $11.4 million in political advertising and by an 88% increase in digital revenues, net revenues rose to $98.8 million, or 20 cents per share, up from $93.7 million, or 3 cents per share, in third quarter 2007, LIN reported Thursday.

Cable Pockets Healthy Share of Political Ad Dollars

Cable appears to have attracted 18 to 20% of the overall advertising spend by the candidates for president, according to Tim Kay, director of political strategy for National Cable Communications, which sells spot cable space for owners Comcast Corp., Cox Communications and Time Warner Cable. He estimated that cable also got 15 to 18% of the advertising for Congressional and local races. Evan Tracey, founder and COO of Campaign Media Analysis Group, put those predictions into dollar values. In September, he predicted that the political ad spend will top out at about $3 billion, with $500 million of that spend on media other than broadcast television. By the end of last week, broadcasters in the swing states, including Ohio, Florida, Colorado and New Mexico "were saturated," Tracey said, and campaigns had begun buying as much ad availabilities in Kentucky, North Carolina and Georgia as they could.

McCain vs. Obama: E-Lection Results

[Commentary] An increasingly large percentage of Internet users -- mostly young, male, well-educated and tech-savvy -- have been turning to social media websites to get their news, tell their stories and debate their opinions. If the Web was a war zone, the social media community would be the place for hand-to-hand combat. Web sites like Digg, MySpace, Facebook, Twitter and Del.icio.us catering to this prime selling demo are considered fair game for news, educated discussions and debates among influential potential voters. The campaigns are well aware of this phenomenon. Still, they have to grapple with questions about whether they should intervene to compensate for a lack of positive social media information and discussion about them. Which campaign is winning this war?