Benton's Communications-related Headlines for 2/19/04

MERGERS
It's Not Enough to Be Just a Phone Company
Martin Perry Named FCC Chief Economist

MEDIA & POLITICS
Pollsters Faulted for Failure to Predict Edward's urge and for Subsequent
News Coverage

DIGITAL TV
New Digital TV Multicast Service

CALENDAR
VoIP and Indecency on Congressional Agenda Next Week

COMICS
Jenny, who can I turn to

MERGERS

IT'S NOT ENOUGH TO BE JUST A PHONE COMPANY
Just as the Comcast-Disney bid shows it is not enough to be just a media
content provider or distributor, the Cingular-AT&T Wireless merger shows it
is not enough to just be a phone company. Consumer markets for traditional
phone services, data transmission, mobile calling and even television are
converging into one industry. The buzz word is bundles -- companies are
vying to offer packages of services like wireless and traditional phone
minutes. Cingular is owned by SBC and BellSouth and the boards of those two
companies obviously saw the purchase of AT&T Wireless as crucial to their
future. Bundling services slow "churn," the rate at which customers leave
to purchase services from competitors. Consumers like the convenience of
receiving just one bill for all there telecommunications.
[SOURCE: New York Times, AUTHOR: Matt Richtel]
http://www.nytimes.com/2004/02/19/business/19wire.html
(requires registration)
See Also:
Wireless Firms Look at Phones as Limitless
Wireless phone acting as television, audio system and even the home
computer? Sure, we can do that.
[SOURCE: Washington Post, AUTHOR: Yuki Noguchi and Griff Witte]
http://www.washingtonpost.com/wp-dyn/articles/A52915-2004Feb18.html

MARTIN PERRY NAMED FCC CHIEF ECONOMIST
To the delight of economists everywhere, CommDaily is running a profile of
Martin Perry who has just joined the FCC. He's an antitrust expert, an
economist, mathematician, lawyer and he loves dogs. Mr. Perry is noted for
his expertise in vertical integration and he has advised the Justice
Department on merger reviews in the past. "I think that one of the reasons
why I'm here... is that some of the most complicated issues have to do with
vertical relationships. These are issues that have been
challenging for years," said Perry. If the proposed merger of Comcast and
Disney ever makes it to regulators to review, Mr. Perry will play a large
role at the FCC.
[SOURCE: Communications Daily, AUTHOR: Brigitte Greenberg]
(Not available online)

MEDIA & POLITICS

POLLSTERS FAULTED FOR FAILURE TO PREDICT EDWARD'S SURGE AND FOR THE
SUBSEQUENT NEWS COVERAGE
Sen John Edwards got a big media boost after his surprisingly strong finish
in Wisconsin. But even the pollster who runs the service used by TV
networks and the Associated Press admits that results of the primary in the
Dairy State "exposed the biggest polling goofs in my memory." The incident
raises the question of whether or not media organizations are overdependent
on polling. If Sen Edwards' support was properly measured over the weekend,
for example, news coverage would have been much different Tuesday night and
Wednesday. The bounce Sen Edwards has seen has helped him raise needed
funds and continue his candidacy. And for the actual winner of the
Wisconsin primary? "Virtually every news outlet, based on public opinion
polling, created the expectation and standard that John Kerry would have a
big victory," he said. "So anything that was short of a big victory almost
inherently becomes a disappointment." Polling for the race ended Sunday
afternoon before a debate between the candidates and before the Milwaukee
Journal Sentinel endorsed Sen Edwards.
[SOURCE: New York Times, AUTHOR: Jim Rutenberg]
http://www.nytimes.com/2004/02/19/politics/campaign/19MEDI.html
(requires registration)

DIGITAL TV

NEW DIGITAL TV MULTICAST SERVICE
U.S. Digital TV (USDTV) will launch a mini wireless cable service in Salt
Lake City next month and move into 29 other markets by year-end. The
service uses spare digital television capacity at 4-5 local TV stations to
deliver a mix of high-definition cable networks and local programming.
USDTV charges consumers ~$20/month and gives local stations a portion of
the subscriber revenue.
[SOURCE: Communications Daily, AUTHOR: Mark Seavy]
(Not available online)

CALENDAR

* Senate Commerce Committee will hold a hearing on Internet phone service
February 24.

* House Telecom Subcommittee will discuss broadcast decency enforcement for
the 3rd time on February 26. A final markup of HR-3717, a bill to increase
indecency fines by a factor of ten, is expected the week of March 1.

COMICS
...and something too funny to pass up...
eBay ended an auction for the phone number 867-5309 which was made famous
in the 1981 by Tommy Tutone. Bidding for the number in the 212 area code
had reached $80,300. The seller had claimed that new number portability
rules allowed him to assign the number to the buyer. But Verizon and the
New York Public Service Commission say that is not the case: the carrier,
not the customer, owns the phone number. And, of course, the record company
owns the song.
Jenny don't change your number.
[SOURCE: Communications Daily]
(Not available online)
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Communications-related Headlines is a free online news summary service
provided by the Benton Foundation (www.benton.org). Posted Monday through
Friday, this service provides updates on important industry developments,
policy issues, and other related news events. Headlines are compiled by
Kevin Taglang (ktaglang( at )etpost.net) -- we welcome your comments.
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