For upcoming media policy events, see http://www.benton.org/calendar.htm
AT THE FCC
Important Rules for Phone Market Face FCC Vote
Airborne Cell-Phone Ban Likely to Remain for Now
Local Activists Urge FCC to Curb Media Mergers
Sachs: DTV Plan a $28B Cable Tax
FCC Pushes DBS Powers Out of Auction
Could Ultrawideband Fuzz Cable Images?
WIRELESS
Sprint, Nextel May Close Deal By Wednesday
Cellular Carriers Face a Future When Wi-Fi Will Cut Into Revenue
INTERNET
Supreme Court to Hear P2P Case
Schools to Receive 2004 eRate Letters
Where the Listeners Are
Net Communities May be key to Future of Politics
This Just In, From The Guy Next Door
QUICKLY
Inouye Sees Chance to Regulate Telecommunications
Ranking TV Network Revenue
Tab for Chicago Political Ads Hits $5 million
Innovator Awards
In the Age of the Wireless Phone, a Louisiana Town Awaits the Real=
=20
Thing
AT THE FCC
IMPORTANT RULES FOR PHONE MARKET FACE FCC VOTE
At its meeting on Wednesday, the FCC will issue new rules that will permit=
=20
the four large regional telephone companies in many instances to charge=20
their rivals more to lease parts of their networks. Apparently,=20
Commissioners Jonathan Adelstein and Michael Copps have reservations about=
=20
the new rules being put forth by FCC Chairman Michael Powell. They are=20
telling Powell that the proposed changes would be devastating for phone=20
competition, would lead to significant price increases and would harm small=
=20
businesses that rely on the services of the rivals to the Bell companies.
[SOURCE: New York Times, AUTHOR: Stephen Labaton]
http://www.nytimes.com/2004/12/13/technology/13fcc.html
(requires registration)
AIRBORNE CELL-PHONE BAN LIKELY TO REMAIN FOR NOW
The U.S. Federal Communications Commission on Wednesday plans to seek=20
public comment on whether to ease or lift its prohibition on the use of=20
wireless phones and two-way communications devices like Blackberrys while=20
in the air. FCC officials stressed that it could take at least a year to=20
lift the agency's ban. And there still is a prohibition by the Federal=20
Aviation Administration, which could take another year to ease. The=20
agencies are moving cautiously because of concerns the communications would=
=20
interfere with operating a plane and could overwhelm wireless systems on=20
the ground. There are also questions about whether it's technically=20
feasible to support thousands of calls from the air.
[SOURCE: Reuters, AUTHOR: Jeremy Pelofsky]
http://www.reuters.com/newsArticle.jhtml;jsessionid=3D2BARPECVLMTIOCRBAE...
A?type=3DtechnologyNews&storyID=3D7065632
LOCAL ACTIVISTS URGE FCC TO CURB MEDIA MERGERS
A report on Thursday night's forum on media concentration in St Paul (MN).
[SOURCE: Minneapolis Star-Tribune 12/10, AUTHOR: Eric Black]
http://www.democracyinaction.org/dia/track.jsp?key=3D3807943&url_num=3D1...
rl=3Dhttp://www.startribune.com/stories/484/5129607.htmlhttp://www.startrib=
une.com/stories/484/5129607.html
SACHS: DTV PLAN A $28B CABLE TAX
In a December 9 letter to FCC Chairman Michael Powell, National Cable &=20
Telecommunications Association President Robert Sachs said the digital=20
transition plan offered by the National Association of Broadcasters would=20
impose set-top costs on cable customers that could run as high as $28=20
billion. The NAB plan would deny cable systems the right to downgrade=20
digital-TV signals to analog at the headend. The broadcaster plan would=20
effectively require cable to provide a digital set-top for every analog-TV=
=20
set or to carry each TV station in both analog and digital, and effectively=
=20
require cable to provide a digital set-top for every analog-TV set or to=20
carry each TV station in both analog and digital.
[SOURCE: Multichannel News, AUTHOR: Ted Hearn]
http://www.multichannel.com/article/CA487230.html?display=3DBreaking+New...
ferral=3DSUPP
(free access for Benton's Headlines subscribers)
FCC PUSHES DBS POWERS OUT OF AUCTION
The FCC is going to auction off the last two remaining unassigned DBS=20
channels with nationwide reach and the Commission has decided to exclude=20
from the auction EchoStar and DirecTV because they already have a national=
=20
presence. The agency said it believes there is a benefit to excluding=20
EchoStar and DirecTV, citing increased competition, development of new=20
services and technological innovation. Consumers stand to benefit in=20
markets where DBS operators and cable systems compete and where they do not.
[SOURCE: Multichannel News, AUTHOR: Glenn Maffei]
http://www.multichannel.com/article/CA487159.html?display=3DPolicy&refer...
=3DSUPP
(free access for Benton's Headlines subscribers)
COULD ULTRAWIDEBAND FUZZ CABLE IMAGES?
On the FCC's agenda this week: A coalition of numerous cable programmers --=
=20
including C-SPAN, A&E Network, Home Box Office and Showtime Networks --=20
wants the Federal Communications Commission to modify rules adopted in 2002=
=20
to eliminate potentially crippling interference from ultrawideband (UWB)=20
providers. A nascent technology, UWB offers a data rate that could reach as=
=20
high as 1,000 Megahertz per second, perhaps making the service a potential=
=20
rival to cable, broadcasting and wireless providers. UWB is so fast that it=
=20
can download a Hollywood movie in just a few seconds.
[SOURCE: Multichannel News, AUTHOR: ]
http://www.multichannel.com/article/CA487181.html?display=3DPolicy&refer...
=3DSUPP
(free access for Benton's Headlines subscribers)
WIRELESS
SPRINT, NEXTEL MAY CLOSE DEAL BY WEDNESDAY
Sprint and Nextel have tentatively agreed on key terms in a $35 billion=20
merger deal that would create a giant cellular carrier with nearly 39=20
million subscribers. An announcement could be made as soon as Wednesday.=20
The future of the telecom business is increasingly a wireless one. And=20
should a deal between Sprint and Nextel be clinched, the cellphone=20
landscape is likely to be locked in position for years, with three large=20
players dominating the market. A Wall Street Journal editorial concludes:=20
"The usual suspects will gripe about all the consolidation, which by the=20
way probably isn't over. We can only hope that antitrust cops at the=20
Justice Department and regulators at the Federal Communications Commission=
=20
tune out these doomsayers. Despite all the coupling -- or rather, because=20
of it -- he wireless sector is more competitive today. Consumers are=20
enjoying better calling plans at cheaper prices, and a Sprint-Nextel merger=
=20
could help continue this free-market trend."
[SOURCE: Wall Street Journal, AUTHOR: Dennis K. Berman=20
dennis.berman( at )wsj.com and Almar Latour almar.latour( at )wsj.com]
http://online.wsj.com/article/0,,SB110290370594698106,00.html?mod=3Dtoda...
s_money_and_investing
http://online.wsj.com/article/0,,SB110290465595398119,00.html?mod=3Dtoda...
s_opinion
Also see an analysis of the deal at:
http://online.wsj.com/article/0,,SB110289232199197859,00.html?mod=3Dtoda...
s_marketplace
(requires subscription)
CELLULAR CARRIERS FACE A FUTURE WHEN WI-FI WILL CUT INTO REVENUE
Internet telephone service is already seen as some as a threat to=20
traditional landline telephone companies -- can the threat be extended to=20
wireless, too? Last month, Japan's largest cellular carrier, NTT DoCoMo,=20
started selling a cellphone that uses the cellular network when a=20
subscriber is out and about. But when a person is sitting at her desk at=20
work, the phone can use the company's Wi-Fi network to place calls over the=
=20
Internet. The giant sucking sound, in this case, is the revenue wireless=20
carriers get from used subscriber minutes. About one-third of all wireless=
=20
calls are place from the office or home. That's a lot of minutes that could=
=20
be "free" over the Internet.
[SOURCE: Wall Street Journal, AUTHOR: Jesse Drucker jesse.drucker( at )wsj.com ]
http://online.wsj.com/article/0,,SB110289088097797788,00.html?mod=3Dtoda...
s_marketplace
Also see:
Wi-Fi or Cellular?
http://online.wsj.com/article/0,,SB110261737269595830,00.html?mod=3Dtoda...
s_the_journal_report
(requires subscription)
INTERNET
SUPREME COURT TO HEAR P2P CASE
The U.S. Supreme Court on Friday said it would hear a controversial case on=
=20
whether file-sharing software companies could be held legally responsible=20
for copyright infringement on their networks. At the core of the case is an=
=20
interpretation of a 20-year-old decision that made VCRs legal despite their=
=20
ability to copy TV shows and movies, which ultimately helped pave the way=20
for a host of technologies ranging from CD burners to Apple Computer's=20
iPod. That case, known as the Sony-Betamax decision, set out rough=20
guidelines under which technology used to make illegal copies of=20
copyrighted material could be distributed without the manufacturer being=20
responsible for the resulting piracy, as long as the product was also=20
capable of "substantial noninfringing uses."
Statement of Gigi B. Sohn, president of Public Knowledge: =93While we are=20
disappointed that the Court has taken the case, we believe strongly that at=
=20
the end of the day, the 1984 Sony Betamax doctrine, which has done so much=
=20
to promote technological innovation to improve the lives of consumers, will=
=20
be reaffirmed. The big content companies are trying to accomplish in this=20
case what they have failed to do in the 20 years since Betamax, and what=20
they have failed this year to accomplish in Congress =AD to put restrictions=
=20
on new technologies that suit their purposes not the needs of consumers.=20
The evidence that file-sharing has significantly hurt the large content=20
companies is very thin. But the trade-off of giving content companies more=
=20
control over the development of technologies and of overturning Betamax,=20
would be very significant and very harmful to consumers and to our economy.=
=20
The content companies have a long history of harnessing new technologies to=
=20
their financial benefit. As the 9^th Circuit recognized, =91The introduction=
=20
of new technology is always disruptive to old markets, and particularly to=
=20
those copyright owners whose works are sold through well established=20
distribution mechanisms. Yet, history has shown that time and market forces=
=20
often provide equilibrium in balancing interests, whether the new=20
technology be a player piano, a copier, a tape recorder, a video recorder,=
=20
a personal computer, a karaoke machine, or an MP3 player.=92 We hope the=20
Supreme Court will bear this in mind.=94
[SOURCE: C-Net|News.com, AUTHOR: John Borland ]
http://news.com.com/Supreme+Court+to+hear+P2P+case/2100-1027_3-5487491.h...
tag=3Dnefd.top
http://www.publicknowledge.org/pressroom/releases/pressrelease.2004-12-1...
72112210
SCHOOLS TO RECEIVE 2004 ERATE LETTERS
eRate funding commitments for the 2004 program year will begin flowing=20
again as soon as President Bush signs a bill passed unanimously by the=20
Senate on Dec. 8 that exempts the eRate from the Anti-Deficiency Act (ADA)=
=20
for a period of one year. Decisions on several thousand school and library=
=20
applications -- worth about $400 million total -- had been held up since=20
August because the Universal Service Administrative Co. (USAC), which=20
administers the eRate, was forced in mid-stream to adhere to the ADA, a=20
federal law requiring government entities to have the money in hand before=
=20
promising it. Though the exemption was passed, Congress, the Federal=20
Communications Commission (FCC), and the Bush Administration still have=20
more work to do, because the exemption is temporary and only lasts until=20
Dec. 31, 2005. Either Congress will need to make the ADA exemption=20
permanent, or the eRate will need to be completely overhauled to come into=
=20
line with federal accounting standards.
[SOURCE: eSchool News, AUTHOR: Cara Branigan]
http://www.eschoolnews.com/news/showStoryts.cfm?ArticleID=3D5412
WHERE LISTENERS ARE
What new medium is the biggest competitor for traditional radio listeners?=
=20
No, not satellite radio... it is the Internet. While just 3.4 million=20
Americans subscribe to satellite radio, about 19 million listen to Internet=
=20
radio each week. That's still tiny compared with the 277 million who listen=
=20
to regular radio each week, but the number of Internet listeners has grown=
=20
fast. Just three years ago, only 11 million listened to Internet radio each=
=20
week. The real boom in Internet radio should unfold over the next few years=
=20
with the development of technology that would allow Internet users to=20
travel around large areas and keep their connections, much like cellphone=20
users can. Widespread mobile Internet access eventually could even allow=20
consumers to get online right from their moving cars. Internet radio=20
receivers could wind up on the dashboard right alongside regular radio=20
tuners, much as satellite radio receivers are becoming standard in-car=20
options today.
[SOURCE: Wall Street Journal, AUTHOR: Sarah McBride sarah.mcbride( at )wsj.com ]
http://online.wsj.com/article/0,,SB110261810998395846,00.html?mod=3Dtoda...
s_the_journal_report
(requires subscription)
NET COMMUNITIES MAY BE KEY TO FUTURE OF POLITICS
A panel of Internet gurus gathered Friday at the fifth annual Votes, Bits &=
=20
Bytes conference, held by the Berkman Center for Internet & Society at=20
Harvard Law School to discuss the impact of Internet business models on=20
online politics. The panelists said the most valuable lesson online=20
campaigners may be able to garner from Web-based companies is that building=
=20
a sense of trust remains at the center of winning loyalty from customers or=
=20
political followers.
[SOURCE: C-Net|News.com, AUTHOR: Matt Hines]
http://news.com.com/Net+communities+may+be+key+to+future+of+politics/210...
28_3-5487855.html?tag=3Dnefd.top
THIS JUST IN, FROM THE GUY NEXT DOOR
A look at hyper-local journalism -- made possible by the Internet.
[SOURCE: Washington Post, AUTHOR: Howard Kurtz]
http://www.washingtonpost.com/wp-dyn/articles/A60249-2004Dec12.html
(requires registration)
See also:
Dan Gillmor, longtime technology columnist for the San Jose Mercury News,=20
is leaving the paper to work on a venture that aims to allow the public to=
=20
report and publish on the Internet.
http://www.mercurynews.com/mld/mercurynews/10379872.htm
QUICKLY
INOUYE SEES CHANCE TO REGULATE TELECOMMUNICATIONS
Sen. Daniel Inouye (D-Hawaii) is expected to be a major player next year=20
when Congress considers rewriting the landmark 1996 Telecommunications Act.=
=20
Beginning as early as January, Sen Inouye and expected-Senate Commerce=20
Committee Chairman Ted Stevens (R-Alaska) will hold public meetings around=
=20
the country to hear from consumers and members of the communications=20
industry about changes to the law.
[SOURCE: Honolulu Star-Bulletin, AUTHOR: Richard Borreca=20
rborreca( at )starbulletin.com]
http://starbulletin.com/2004/12/12/news/story3.html
RANKING TV NETWORK REVENUE
Broadcasting & Cable annually ranks the top 25 television networks based on=
=20
revenue. The Top 25 networks represent 79% of the $52 billion that TV=20
programmers are expected to generate this year. This year's Top 5 are NBC,=
=20
CBS, QVC, ABC and ESPN. Three of the 10 largest networks sell no=20
advertising at all: shopping networks QVC and Home Shopping Network and pay=
=20
movie channel Home Box Office. ESPN's average audience is just a fraction=20
of ABC's, but the two networks' revenues are nearly equal because the cable=
=20
sports network collects giant license fees from cable and DBS operations=20
while ABC is dependent solely on advertising.
[SOURCE: Broadcasting&Cable, AUTHOR: John Higgins]
http://www.broadcastingcable.com/article/CA487193.html?display=3DSpecial...
ort&referral=3DSUPP
(free access for Benton's Headlines subscribers)
TAB FOR CHICAGO POLITICAL ADS HITS $5 MILLION
Despite an election with few surprises, candidates still spent over $5=20
million for political ads in the fall campaign on Chicago stations, running=
=20
over 2,000 30-second spots during October and November.
[SOURCE: Illinois Campaign for Political Reform]
http://ilcampaign.org/analysis/reports/2004/TVAds2004.html
MULTICHANNEL NEWS 2004 INNOVATOR AWARDS
Cable TV operator Cox has won this year's Multichannel News 2004 Innovator=
=20
Award for Community Service for the August launch of =93Take Charge!=94 a=20
program designed to raise awareness and the use of parental controls and=20
filtering tools for TV and Internet services that are already available in=
=20
most homes. See www.cox.com/takecharge
http://www.multichannel.com/article/CA487156.html?display=3DSpecial+Repo...
eferral=3DSUPP
Cable TV operator Adelphia won this year's Multichannel News 2004 Innovator=
=20
Award for Education for supplying connectivity, video and online content to=
=20
more than 400 schools and libraries in Maine.
http://www.multichannel.com/article/CA487161.html?display=3DSpecial+Repo...
eferral=3DSUPP
Satellite TV operator EchoStar has won this year's Multichannel News 2004=20
Innovator Award for Ethnic Programming and Distribution for adding services=
=20
and language-specific channels to meet the programming needs of the U.S.=92s=
=20
immigrant population.
http://www.multichannel.com/article/CA487162.html?display=3DSpecial+Repo...
eferral=3DSUPP
[SOURCE: Multichannel News, AUTHOR: Mike Reynolds]
(free access for Benton's Headlines subscribers)
IN THE AGE OF THE WIRELESS PHONE, A LOUISIANA TOWN AWAITS THE REAL THING
Yes, the telephone is not everywhere. In fact, televisions are more common=
=20
in American homes today. Alexander Graham Bell's invention of 1876 never=20
reached Mink, Louisiana, a onetime trappers' paradise in the Kisatchie=20
National Forest in west-central Louisiana, although neighbors just down the=
=20
road on Highways 117 and 118 were wired for telephones in the 1970's. But=20
now the 19th century is catching up with Mink and other isolated areas.=20
Pushed by the state's Public Service Commission, BellSouth, at what it says=
=20
is enormous expense, is wiring Mink for telephone service scheduled to=20
start by March.
[SOURCE: New York Times, AUTHOR: Ralph Blumenthal]
http://www.nytimes.com/2004/12/12/national/12phones.html?adxnnl=3D1&oref...
ogin&adxnnlx=3D1102888414-bAYhhkypmzUxouz5sW/AGw
(requires registration)
--------------------------------------------------------------
Communications-related Headlines is a free online news summary service=20
provided by the Benton Foundation (www.benton.org). Posted Monday through=20
Friday, this service provides updates on important industry developments,=20
policy issues, and other related news events. While the summaries are=20
factually accurate, their often informal tone does not always represent the=
=20
tone of the original articles. Headlines are compiled by Kevin Taglang=20
(headlines( at )benton.org) -- we welcome your comments.
--------------------------------------------------------------