Benton's Communications-related Headlines for 4/01/05

POLICYMAKERS
Telecos Agree on Telecom Rewrite
Martin Breaks Silence, Resigns
NAB, NCTA Bad Blood Spills into Conventions

OWNERSHIP
Battle for MCI Changes Course -- Again
XM, Sirius to Merge

PUBLIC BROADCASTING
Listeners Ask Pubradio for Pledge
Arthur's Turn in Hot Seat

POLICYMAKERS

TELECOS AGREE ON TELECOM REWRITE
With Congress ending a two-week break, large telephone companies have had
time to work through the details of telecommunications reform they hope to
pass by the end of the year. The Telecommunications Consumer Empowerment
Act of 2005 will be circulated to key Congressional leaders next week. It
includes provisions that: 1) ensure telephone companies will only have to
provide service where they can maximize profit; 2) set "voluntary goals"
instead of mandates for emergency 911 service quality; 3) codify early
termination penalties; 4) minimize the role of states in the areas of
consumer protection, economic regulation of dominant carriers and
developing competition; 5) grant telecos the primary authority over the
retail relationship between the customer and the customer's
telecommunications provider; 6) remove regulation of service quality; 7)
guarantee that telecos' privacy related to their telecommunications
services is maintained; 8) highlight that the First Amendment applies to
all telecommunications marketing and billing which will no longer be
regulated; 9) sets a hard date -- January 1, 2009 -- for a sunset of all
federal telecommunications regulation; and 10) create an independent
consumer advocate nominated by large phone companies for purposes of
representing consumer interests in telecommunications matters before the
Federal Communications Commission. The bill currently has 300 co-sponsors
in the House and 65 in the Senate.
[SOURCE: HillWatch, AUTHOR: Cliff Bruff]
(http://www.hillswatch.com/2005/04/01/0987111.html)
(requires registration)

MARTIN BREAKS SILENCE, RESIGNS
The Federal Communications Commissions faces an agenda clogged with a
number of hot-button issues: transitioning broadcast TV to digital signals
and rewriting media-concentration rules; shoring up the Universal Service
Fund; overhauling the haphazard system phone companies use to compensate
each other for completing calls; and deciding what rules should apply to
Internet phone services. But after a two week review of this pending
business, new chairman Kevin Martin surprised Washington by announcing his
resignation. "Although I have been a Commissioner since 2001," Martin said
in a released statement, "I did not fully comprehend the utter mess we've
made of US communications policy. This job is too big for this mere mortal.
Unfortunately, this decision will have the most adverse impact on small,
independent, religious, family-friendly and minority broadcasters." Perhaps
the most surprising part of Martin's announcement is that his resignation
is immediate, leaving the Commission with a Democratic majority until
President Bush names nominees for seats perviously held by Martin and
departed former-Chairman Michael Powell.
[SOURCE: Communiscriptions Day, AUTHOR: Abbie Lane]
(Not available online)

NAB, NCTA BAD BLOOD SPILLS INTO CONVENTIONS
With policy stakes continually increasing and policy making turning into an
"always on" campaign, the national conventions of two bitter rivals
apparently will become new battle grounds for the future of television.
Thousands of cable executives -- most from giants Comcast and Time Warner
-- fly West today to San Francisco for the 54th Annual Convention &
International Exposition of the National Cable & Telecommunications
Association (NCTA). With the unexpected departure of FCC Chairman Kevin
Martin (see story above), these executives will turn a keen ear to remarks
by Michael D. Gallagher, Director of the National Telecommunications and
Information Administration and possible Martin replacement. But according
to a strategy memo obtained by the Washingtown Post, broadcasters are
planning to crash the NCTA party, protesting cable's "iron-fisted control
of television programming." The television station owners are arming
themselves with bullhorns and press passes distributed to their news teams
for some old fashion gorilla-style media activism. They've even hired a
plane to fly over the convention site with a sign reading: "No cord, no
cable can forcibly hold so fast, as the love of free TV and rabbit ears."
Cable spokesperson Liam Ditz replied to the planned protest saying, "Let
them try this and we'll see if we can make a connection between
'broadcasters' and 'broad arses' in Vegas," referring to the National
Association of Broadcasters annual meeting later in the month.
[SOURCE: Washingtown Post, AUTHOR: Alice Camen]
(http://www.washingtownpost.com/inloop/20050401.htm)
(requires registration)

OWNERSHIP

BATTLE FOR MCI CHANGES COURSE -- AGAIN
Fresh off the news that MCI, the nation's second-largest long distance
company, had accepted a $7.6 billion bid from Verizon, Qwest has officially
withdrawn its $8.45 billion bid. But Verizon will now, in turn, purchase
Qwest for $7 billion and create the nation's largest phone company with
market dominance in both the Northeast and Northwest. "There's no question
that the Verizon-Qwest-MCI combination will be a more competitive company
than an independent Verizon," said Iwan B. Slenderberg who will become
chairman and CEO of the new company, tentatively called Veqwem (pronounced
wigwam). Analysts were somewhat started, but suggested it will be the only
way for Qwest and MCI to survive in the consolidating marketplace and for
Verizon to effectively compete with the proposed SBC-AT&T-BellSouth
combination. "The benefits to the public are obvious," said Wall Street
analyst and former FCC Commissioner Drew Barnett. "The deal will face some
obligatory regulatory scrutiny, but should win approval without much
graft." Asked about possible state regulatory review, a company
representative said there was little expected problems from the "regulatory
underbrush."
[SOURCE: Will Street Journal, AUTHOR: Les Jucker]
(http://willsj.com/current/update/merger/050401.html)
(requires subscription)

XM, SIRIUS TO MERGE
With an unanticipatedly quick technological breakthrough allowing
interoperablity for Sirius and XM receivers, the two companies will
announce later today that they are merging to form Your Satellite Radio
(YSR). "They were the technology leaders," Mel Karmazin, Sirius's chief
executive, said of XM. "We were the content leader. Combined, we'll be the
market leader in a matter of years." YSR's integrated technology will
offer, potentially, thousands of audio channels for subscribers. The new
radios will be installed on all new GM, BMW, DaimlerChrysler AG and Ford
cars sold in the US beginning with 2006 models. XM's Hugh Panero will be
the new company's CEO, but Karmazin will get the corner office in the new
company's headquarters. "It is the only one big enough to hold his, um,
belongings," a spokesperson said.
[SOURCE: Rooters, AUTHOR: Drew O'Sullivan]
(http://www.rooters.com/newsChannel.jhtml?type=technologyNews)

PUBLIC BROADCASTING

LISTENERS ASK PUBRADIO FOR PLEDGE
Around the country this week and next, public radio stations are asking
listeners to become members and pledge in large round figures. But
listeners seem to have their own ideas this year. Using
www.putthePinNPR.net as an organizing tool, listeners are withholding their
pledges and renewals in hopes of gaining more than another free tote bag.
Apparently, they want members to have a more active role in governing
public radio stations. According to the web site, new and existing members
will not make pledges until 1) the stations' boards of directors are
elected by and from the ranks of the membership, 2) these boards are given
power to hire/fire top executives and 3) free parking at live tapings. (OK,
#3 is a joke -- they really want a say in "establishing overall policies
which give direction to the Executive Director and the professional staff
for the day-to-day operations of the station.") The website keeps a running
tab on total pledges being withheld -- and the total per station.
[SOURCE: Currents, AUTHOR: Stephen Brens]
http://www.currents.org/ch/ch0505pledgetime.shtml
Also see:
http://www.current.org/current/cursteve.html

ARTHUR'S TURN IN HOT SEAT
First Sponge Bob, then Buster the Bunny, now Arthur the Aardvark is the
focus criticism. The plots of Arthur stories usually revolve around simple
events that children can identify with, such as taking a family vacation,
getting glasses, adjusting to a new baby in the family, or writing a story
for a homework assignment. A program scheduled for May 1, however, had
Arthur visiting an Eastern Orthodox church to celebrate Easter. In a letter
to author/illustrator Marc Brown, a Department of Education faith-based
initiative official wrote, "There's seems to be some misunderstanding about
our funding priorities as outlined by President Bush and detailed in our
educational television RFP. Obviously, many parents may find it disturbing
to have their children realize that Arthur's family has not shed its old
world ways and assimilated into American Christianity. We suggest you
rewrite the script for 'A Day at St Andrew's' so that Arthur visits a
normal, protestant Church." WTTW, the Chicago public television station
that produced the show, apparently will go ahead with plans to air the
program, but the show's sponsor Brach's Confections has pulled its
underwriting announcement which included plugs for its popular Bridge
Mix(R) and Peanut Butter Meltaways(R). The program will be made available
for distribution, but not by beleaguered PBS which is urging stations to
air it in the evening so parents can review its controversial content.
[SOURCE: Broadcast&Cable, AUTHOR: Sean Jeggerton]
http://www.broadcastcable.com/article/CA513929.html?display=Breaking+New...
(subsidized access for Benton's Headlines subscribers)
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