For upcoming media policy events, see http://www.benton.org/calendar.htm
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 (headlines( at )benton.org) -- we welcome your comments.
CABLE & BROADCASTING & SATELLITE
FCC Officials Defend DTV Transition Plan
No More Delays on Digital TV
Cable Women Take On 'Concerned' Women
FCC's Ferree Favors a la Carte
Powell: VoIP Will Pack a Wallop
Ergen Could Compromise on DTV Delivery Plan
Media Institute Opposes Bono Reversal
Gore Group Buys Newsworld International
OWNERSHIP
Disney Forbidding Distribution of Film That Criticizes Bush
Remarks of Commissioner Copps at the Future of Music Coalition Policy Summit
PRIVACY
Does Gmail Breach Wiretap Laws?
QUICKLY
Electronic Voting Still In Infancy, Critics Say
Phone Companies Gain Ground in Speedy Web Access
Poll Shows Support for Offshoring Tax
CABLE & BROADCASTING & SATELLITE
FCC OFFICIALS DEFEND DTV TRANSITION PLAN
In New Orleans, FCC General Counsel John Rogovin predicted that the plan to
accelerate the transition to digital-only broadcasting would be appealed in
court, but is "a very defensible reading of the statute" and "would prevail
in court." FCC Media Bureau Chief Kenneth Ferree called the DTV transition
"the single most important thing the Commission will do while I'm there"
and said the Bureau has begun putting the plan on paper. Many are concerned
about the 15% of households using free, over-the-air TV, Chief Ferree
acknowledged, though he predicted the number will be lower by 2009. Robert
Pepper, FCC chief of policy development, said chipsets to convert DTV to
analog can be built for less than $25 within 24 months, and he's
"absolutely convinced" they'll be available. The statements by President
Bush and Sen John Kerry about making spectrum available for broadband
service has raised this issue's profile, said Jane Mago, chief of the FCC
Office of Strategic Planning.
[SOURCE: Communications Daily, AUTHOR: Michael Feazel]
(Not available online)
NO MORE DELAYS ON DIGITAL TV
Lenard supports the FCC's proposal to speed the transition to digital only
TV by counting cable and satellite subscribers as digital TV households.
Doing this could trigger the return of analog TV spectrum for auction and
new uses. Lenard estimates that only about 10% of US households receive
free, over-the-air TV. FCC Chairman Powell has said, "It seems clear to me
that at some point on the horizon, all Americans--perhaps in 10 years--will
have pay TV." By then, a significant portion of Americans may be getting
their TV over the Internet. As Powell also noted, "If 100 percent of
Americans don't get free, over-the-air TV, what are we protecting?" Lenard
suggests that Congress should take the opportunity afforded by the
reauthorization of the Satellite Home Viewer Improvement Act (SHVIA) to
allow satellite operators provide digital broadcast signals to more
subscribers. Doing so, it is suggested, will help the transition by moving
more people to pay for TV and by increasing the digital programming
available, it would increase demand for digital TVs. Lenard concludes:
Moving the nation the rest of the way from its current approximately 90
percent subscription viewership raises the prospect of reclaiming the
entire amount of spectrum currently reserved for broadcast TV (402 MHz) and
auctioning it off for other, higher-valued uses. Estimates, based on recent
auctions for 3G spectrum in both the United States and Europe, put the
market value of the TV spectrum as high as $367 billion. If just analog
spectrum were returned, the amount of spectrum relinquished would be
smaller but still very valuable. This issue is politically difficult,
because it pits powerful interest groups (the broadcasters and the cable
and satellite providers) against each other. But there is no alternative to
government taking the lead and doing it sooner rather than later. When
demand for the airwaves for innovative new wireless communications
technologies is exploding, the costs of delay are huge.
[SOURCE: C-Net|News.com, AUTHOR: Thomas Lenard, Vice President of Research,
Progress & Freedom Foundation]
http://news.com.com/2010-1040-5203382.html
CABLE WOMEN TAKE ON 'CONCERNED' WOMEN
Female cable executives have written Congress an open letter arguing
against the push for a la carte pricing. "Government efforts to dictate how
our programming is packaged or marketed would be bad for consumers because
it would give them less choice and less diversity in programming and it
would increase the price they would pay for this inferior set of
offerings," the executives wrote. The execs argue that a la carte servings
would significantly reduce the potential audience for niche networks like
Oxygen that target women and minorities. Their stand is in opposition to
that of a conservative group calling itself Concerned Women of America,
which is pushing for a la carte legislation. The House Commerce Committee
will consider a la carte pricing as potential amendment to the Satellite
Home Viewer Improvement Act.
[SOURCE: Broadcasting&Cable, AUTHOR: Bill McConnell]
http://www.broadcastingcable.com/article/CA415156?display=Breaking+News
(requires subscription)
See also:
A La Carte Bashed in Big Easy
http://www.broadcastingcable.com/article/CA415208?display=Breaking+News
FCC'S FERREE FAVORS A LA CARTE
Speaking at the cable industry's annual meeting in New Orleans, FCC Media
Bureau Chief Kenneth Ferree was asked what he thinks about a la carte
pricing. "I am a fan of a la carte. I'll be an unabashed fan of a la
carte," he said. Chief Ferree added that cable-industry arguments that a la
carte would to lead to less choice and higher cable bills were debatable.
"There are many good arguments for why it wouldn't work. I'm just not
convinced [that they are correct]." Government-mandated a la carte is
favored by Senate Commerce Committee Chairman John McCain (R-AZ) and Rep.
Nathan Deal (R-GA). House Majority Leader Tom DeLay (R-TX) supports
voluntary a la carte, while House Energy and Commerce Committee Chairman
Joe Barton (R-TX) is giving cable's free channel-blocking approach to
indecency some time to work.
[SOURCE: Multichannel News, AUTHOR: Ted Hearn]
http://www.multichannel.com/article/CA415099?display=Breaking+News
(requires subscription)
POWELL: VOIP WILL PACK A WALLOP
FCC Chairman Michael Powell was in New Orleans Tuesday, speaking with
National Cable & Telecommunications Association President Robert Sachs at
the organization's national convention. On Internet telephone service
(VoIP), Chairman Powell said, "I think it is going to be the very, very
best and biggest breakthrough in our ambitions and dreams about competition
ever. If consumers respond to it, we will have to be vigilant about not
allowing the incumbent, in any anti-competitive way, to choke off that
possibility." He noted that Web-based VoIP providers have unimpeded access
to consumers with none of the network costs. VoIP providers can service
broadband services without the permission of -- or really even the
knowledge of -- the networks' owners, posing a low-cost threat to local
phone markets that have been dominated by the Baby Bells for decades. The
convention ends today.
[SOURCE: Multichannel News, AUTHOR: Ted Hearn]
http://www.multichannel.com/article/CA415259?display=Breaking+News
(requires subscription)
ERGEN COULD COMPROMISE ON DTV DELIVERY PLAN
EchoStar Chairman Charlie Ergen told the Senate Commerce Committee Tuesday
that he's open to a compromise with broadcasters over his controversial
proposal to transmit digital network channels from big cities into local
markets across the country. Given the right language in the Satellite Home
Viewer Improvement Act, EchoStar would commit to shut off imported network
channels in a market once the company offers that network's local
affiliate. is asking Congress for the right to beam high-definition
programming from network stations in big markets to customers around the
country who can't get HD and other digital programming from local network
affiliates, which may be offering digital with only low power signals or
not at all. Broadcasters believe that Mr. Ergen is a big, fat
liar. "Echostar has no intention of returning these viewers once local
service is available in their markets," complained Jim Yager, CEO of
Barrington Broadcasting.
Links to written testimony are available at
http://commerce.senate.gov/hearings/witnesslist.cfm?id=1174
[SOURCE: Broadcasting&Cable, AUTHOR: Bill McConnell]
http://www.broadcastingcable.com/article/CA415146?display=Breaking+News
(requires subscription)
MEDIA INSTITUTE OPPOSES BONO REVERSAL
The Media Institute, a think tank funded mainly by the major broadcast TV
networks and other large media companies, hand delivered comments to the
FCC today in opposition to the Commission's recent ruling to make
profanities off-limits to broadcasters. The institute says the Commission's
decision creates an "ominous scheme of speech regulation that will punish
even isolated or fleeting expletives without regard to their context, take
a new approach to profanity, and give the commission broad latitude to
arbitrarily define offensive speech." The institute wants the Commission to
study whether there is any way it can enforce an indecency policy "in the
context of the current media landscape and social climate that does not run
afoul of the First Amendment."
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
http://www.broadcastingcable.com/article/CA415162?display=Breaking+News
(requires subscription)
GORE GROUP BUYS NEWSWORLD INTERNATIONAL
Former Vice President Al Gore and entrepreneur Joel Hyatt are acquiring
Newsworld International (NWI), a global-news channel from Vivendi Universal
Entertainment. "This is not going to be a liberal network or a Democratic
network or a political network in any way, shape or form," Mr. Gore told
reporters at the cable convention in New Orleans. "It is going to be an
exciting television home for young people in their 20s who want to learn
more about the world and hear real-life stories about the world -- and
about their lives -- in a voice that they recognize from a point of view
that they identify as their own." Without backing from a major media firm,
the new network may find trouble expanding its audience of 17 million
subscribers. Some caution that the cable industry may not make things easy
for Mr. Gore who was instrumental in passing cable regulation in 1992. Mr.
Gore made much of the fact that, in a world of media consolidation, NWI
will be an independent network. "Having independent voices -- particularly
in news and information, current affairs, real-life stories about our world
-- is a very important value to safeguard," he said.
[SOURCE: Multichannel News, AUTHOR: Linda Moss]
http://www.multichannel.com/article/CA415100?display=Breaking+News
(requires subscription)
See also:
B&C: http://www.broadcastingcable.com/article/CA415098?display=Breaking+News
NYT: http://www.nytimes.com/2004/05/05/national/05GORE.html
WP: http://www.washingtonpost.com/wp-dyn/articles/A2108-2004May4.html
LATimes:
http://www.latimes.com/business/printedition/la-fi-gore5may05,1,4428051....
OWNERSHIP
DISNEY FORBIDDING DISTRIBUTION OF FILM THAT CRITICIZES BUSH
The Walt Disney Company is blocking its Miramax division from distributing
a new documentary by Michael Moore that harshly criticizes President Bush.
Disney and Miramax have a contract allowing it to prevent the company from
distributing films under certain circumstances, like an excessive budget or
an NC-17 rating. Miramax executives do not believe that this is one of
those cases. Disney is apparently nervous that the film will enrage the
Bush family and lead Gov Jeb Bush of Florida to end tax breaks Disney
receives for its theme park, hotels and other ventures in Florida. Mr.
Moore will present the film at the Cannes film festival this month and said
yesterday, "At some point the question has to be asked, 'Should this be
happening in a free and open society where the monied interests essentially
call the shots regarding the information that the public is allowed to see?'"
[SOURCE: New York Times, AUTHOR: Jim Rutenberg]
http://www.nytimes.com/2004/05/05/national/05DISN.html
(requires registration)
REMARKS OF COMMISSIONER COPPS AT THE FUTURE OF MUSIC COALITION POLICY SUMMIT
FCC Commissioner Michael Copps recently spoke up again against media
ownership consolidation and the Commission's media ownership rules adopted
last June. Commissioner Copps warns that media companies are increasingly
owning production, distribution and even creativity itself. "Anything with
the name "independent" on it seems to be on the endangered species
list. That's why I'd like to see some sort of set-aside, like 25-35% of
prime-time hours, for independent creators and producers." He argued that
independent programming would be a boost for localism, diversity and
competition, the "essential building blocks for a healthy and dynamic media
environment." Commissioner Copps summarized what's at stake: "At issue in
the Commission's dismal decision of last June is how America's TV, radio,
newspapers and even the Internet are going to look for years to come. Who
is going to control the media? How many -- or rather, how few --
companies? And for what purposes? How will we assure quality TV and music
instead of being so often fed a diet of pre-canned, nationalized fare aimed
primarily at selling products? Will we still be able to get real local news
and clashing points of view so we can make up our own minds on the issues
of the day? The issues here boil down to whether a few large conglomerates
will be ceded content control over our music, entertainment and
information; gatekeeper control over the civil dialogue of our country; and
veto power over the majority of what we and our families watch, hear and
read. These are incredibly huge stakes."
His full remarks are now online at the URL below.
[SOURCE: FCC]
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-246862A1.doc
PRIVACY
DOES GMAIL BREACH WIRETAP LAWS?
The Electronic Privacy Information Center (EPIC), Privacy Rights
Clearinghouse, and the World Privacy Forum have urged the Attorney General
of California to investigate Google's Gmail service, as it scans the
content of individuals' e-mails for targeted marketing in violation of
California's wiretapping laws. The groups also called upon Google to
suspend the service again, as Gmail users could be liable for violations of
the law. Last month, thirty-one privacy and civil liberties groups wrote to
Google, asking the company to voluntarily suspend the service. Jim Harper,
a lawyer who runs the privacy advocacy Web site Privacilla.org, said Gmail
is legal because it reviews only stored e-mail and does not meet the "in
transit" definition of a wiretap. In addition, the relatively dumb computer
program that matches keywords doesn't meet the California law's "read" or
"learn" requirements. "It's ridiculous," Harper said. "Is a faxed letter
that is copied and used in different ways also subject to this
interpretation? Maybe there's some future set of computers that comprehend
in the way we can agree on, but we're not there yet in artificial
intelligence...(The anti-Gmail) groups are intellectually rootless
opponents of commerce and progress."
[SOURCE: C-Net|News.com, AUTHOR:Declan McCullagh]
http://news.com.com/2100-1038_3-5205554.html?tag=cd.top
See text of letter to Attorney General Lockyer at
http://www.epic.org/privacy/gmail/agltr5.3.04.html
See letter to Google at
http://www.epic.org/privacy/gmail/google5.3.04.html
QUICKLY
ELECTRONIC VOTING STILL IN INFANCY, CRITICS SAY
Election Assistance Commission established by Congress is having its first
meeting today. After election problems in Florida in 2000 and 2002,
Congress allocated $3.9 billion for election upgrades. States will get the
biggest chunk of that in the next two months. But the commission, which was
established to guide them, just came into existence, too late to help in
buying decisions. And the federal research intended as the basis of the
standards has not been financed, much less begun. Opponents of electronic
voting say a lack of security safeguards for the new technology could
undermine voter confidence in this year's presidential election.
[SOURCE: Washington Post, AUTHOR: Dan Keating]
http://www.washingtonpost.com/wp-dyn/articles/A1876-2004May4.html
(requires registration)
PHONE COMPANIES GAIN GROUND IN SPEEDY WEB ACCESS
Verizon, SBC, BellSouth and Qwest added 1.05 million digital subscriber
lines (DSL) during the first quarter of 2004. While some cable companies
have yet to report results, analysts with Goldman Sachs and Deutsche Bank
estimate new DSL lines barely outsold new high-speed cable connections in
the quarter, with a total for both of about 2.3 million.
[SOURCE: Reuters, AUTHOR: Justin Hyde]
http://www.reuters.com/newsArticle.jhtml;jsessionid=1PJ1OMSV4YIQUCRBAEKS...
POLL SHOWS SUPPORT FOR OFFSHORING TAX
A CNET News.com and Harris Interactive poll finds that 40% of U.S.
technology executives surveyed would be willing to pay higher taxes to
compensate for jobs they send offshore. The poll also suggests that
companies would be willing to help pay for improvements in the quality of
American education and worker retraining to help the United States maintain
its competitive edge in technology.
[SOURCE: C-Net|News.com, AUTHOR: Charles Cooper]
http://news.com.com/2100-1022_3-5204950.html?tag=nefd.top
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