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For upcoming media policy events, see=20
http://www.benton.org/index.php?q=3Devent/2007/06/08/week/all/all/1

BROADCASTING
The Price of Free Airwaves
Consumers unaware of digital TV change
Air of Truth

TELECOM
Appeals court ruling upholds Net phone taxes
Musical Chairs for EU Telecoms
Consumers Keeping Their Cellphones Longer
Wireless Will Drive Telecom For Next 5 Years

HEALTH AND MEDIA
FTC: No Rise In Junk-Food Ads
Entertaining TV programs make you eat, study finds

OWNERSHIP
NBC still rates at GE
Murdoch in key talks over Dow
Private equity firms eye tech sector
Google acquires Web media distributor Feedburner

QUICKLY -- Regs from Katrina aftermath fall=20
short, Dems at FCC charge; Presidential hopefuls=20
star on Google's stage; Survey Pokes Holes in a=20
la Carte; Study: Music, Tech Search Terms=20
Riskiest; Man Charged for Putting TV Show on Web

BROADCASTING

THE PRICE OF FREE AIRWAVES
[SOURCE: New York Times 6/2, AUTHOR: FCC Commissioner Michael Copps]
[Commentary] Using the public airwaves is a=20
privilege -- a lucrative one -- not a right, and=20
I fear the Federal Communications Commission has=20
not done enough to stand up for the public=20
interest. Our policies should reward broadcasters=20
that honor their pledge to serve that interest=20
and penalize those that don't. The FCC already=20
has powerful leverage to hold broadcasters to=20
their end of the bargain. Every eight years,=20
broadcasters must prove that they have served the=20
public interest in order to get license renewal.=20
If they can't, the license goes to someone else=20
who will. It=92s a tough but fair system -- if the=20
commission does its job. The problem is that,=20
under pressure from media conglomerates, previous=20
commissions have eviscerated the renewal process.=20
Now we have what big broadcasters lovingly call=20
=93postcard renewal=94 -- the agency typically=20
rubber-stamps an application without any=20
substantive review. Denials on public interest=20
grounds are extraordinarily rare. Let=92s also=20
actually review a station=92s record before=20
renewing its license. Here are just some of the=20
criteria for renewal the FCC considered in the=20
1990s but never put into place: Did the station=20
show programs on local civic affairs (apart from=20
the nightly news), or set aside airtime for local=20
community groups? Did it broadcast political=20
conventions, and local as well as national=20
candidate debates? Did it devote at least five=20
minutes each night to covering politics in the=20
month before an election? In an era when owners=20
may live thousands of miles from their stations,=20
have they met with local community leaders and=20
the public to receive feedback? Is the station=92s=20
so-called children=92s programming actually, in the=20
view of experts, educational? All of this=20
information ought to be available on the Web so=20
people can see how their airwaves are being used.
http://www.nytimes.com/2007/06/02/opinion/02copps.html
(requires registration)
* For more on broadcasters' public interest obligations see
http://www.benton.org/pioguide/index.html

CONSUMERS UNAWARE OF DIGITAL TV CHANGE
[SOURCE: Chicago Tribune, AUTHOR: Mark Chediak]
About one out of every 10 Americans relies on an=20
analog set with rabbit ears to watch free,=20
over-the-air broadcasts. Those sets will go dark=20
in 2009 without a converter box or a satellite or=20
cable hookup. The Federal Communications=20
Commission recently told retailers they had until=20
May 25 to label analog TVs with a "consumer=20
alert" to inform shoppers about the need for=20
special equipment beginning Feb. 18, 2009, when=20
the all-digital rule takes effect. said the move=20
was necessary because voluntary efforts by stores=20
and television-makers were not working. "Each of=20
these sets is a ticking time-bomb for 2009,=20
requiring consumers to go to significant trouble=20
and expense if they want to continue receiving=20
over-the-air television," FCC Commissioner Michael Copps said.
http://www.chicagotribune.com/business/chi-mon_digital_tv_06-04jun04,0,2...
481.story?track=3Drss
For more on the DTV transition see --
* Getting to February 2009: Implementing the Digital TV Transition
http://www.benton.org/index.php?q=3Dnode/1340
* Getting to February 2009: Outstanding DTV Transition Issues
http://www.benton.org/index.php?q=3Dnode/1261

AIR OF TRUTH
[SOURCE: New York Times, AUTHOR: Kim Andrew=20
Elliott, United States International Broadcasting Bureau]
[Commentary] Telling the truth builds=20
credibility. But in our current war, the=20
Arabic-language television channel financed by=20
our government, Al Hurra, faces Congressional=20
criticism because of its reporting of the news.=20
At a recent subcommittee hearing about Al Hurra,=20
Representative Mike Pence, Republican of Indiana,=20
said: =93I believe in a free and independent press.=20
This is, however, a diplomatic mission of the=20
United States of America. And are we=20
communicating in a very practical way to=20
employees down the line that this is not a =91we=20
report, you decide=92 television station?=94 The=20
president of Al Hurra=92s parent corporation, Brian=20
Coniff, suggested a willingness to move in the=20
direction advocated by Mr. Pence. =93We need to=20
find as many venues within the organization as=20
possible that this isn't just straight=20
journalism, but it=92s journalism with a mission,=94=20
Mr. Coniff said. Comprehensive news is a=20
demonstration of democracy in action. It provides=20
the independent journalism that is necessary for=20
a democracy to function. It will cover the debate=20
between the government and the opposition. And=20
audiences will hear about politicians =97 American=20
politicians =97 whose views are closer to their=20
own. Even if audiences are not compelled to agree=20
with American policies in the present crisis, at=20
least good will and credibility will have=20
accumulated. Those could be useful in the next crisis.
http://www.nytimes.com/2007/06/04/opinion/04elliott.html
(requires registration)

TELECOM

APPEALS COURT RULING UPHOLDS NET PHONE TAXES
[SOURCE: C-Net|News.com, AUTHOR: Anne Broache]
A three-judge panel of the U.S. Court of Appeals=20
for the District of Columbia on Friday largely=20
upheld a requirement that Internet phone=20
companies like Vonage pay fees into a fund to=20
subsidize rural telephone service, but Voice over=20
Internet Protocol (VoIP) representatives said the=20
ruling isn't all bad. In what amounts to a split=20
decision, the court said the Federal=20
Communications Commission acted reasonably and=20
within its authority last June when it extended=20
to VoIP providers a new set of taxes. Wireline=20
and wireless carriers already are required to pay=20
10.9 percent of their long-distance revenues into=20
the Universal Service Fund. The judges kept in=20
place a key portion of the FCC rules--challenged=20
by Vonage and industry group VON Coalition--that=20
appears to discriminate against VoIP providers in=20
favor of their more politically influential=20
competitors. The rule could require the upstarts=20
to pay a higher percentage of their revenues than=20
wireless and wireline rivals. Vonage and the VON=20
Coalition never challenged the FCC's authority to=20
require their companies to pay into the fund.=20
Instead, they took issue with the methodology for=20
calculating how much they owed. The court decided=20
Vonage hadn't done enough to prove its similarity=20
to wireless carriers and declined to make any=20
changes. Although that move was disappointing,=20
the court's decision to overturn two other=20
portions of the ruling signal "a growing=20
recognition by the courts that the FCC has in=20
some cases gone too far in applying regulatory=20
obligations to Internet communications...that go=20
beyond what they've done for other types of=20
communications," said Jim Kohlenberger, the VON Coalition's executive direc=
tor.
http://news.com.com/Appeals+court+ruling+upholds+Net+phone+taxes/2100-73...
3-6188223.html?tag=3Dhtml.alert.hed
* Court Approves Universal-Service-Fund Mandates on Cable VoIP
http://www.multichannel.com/article/CA6448359.html?rssid=3D196

MUSICAL CHAIRS FOR EU TELECOMS
[SOURCE: Wall Street Journal, AUTHOR: Leila Abboud leila.abboud( at )wsj.com]
Across Europe, major telecommunications companies=20
are shuffling their asset portfolios as they look=20
for a mix that will allow them to maintain=20
profitability as growth slows. In recent years,=20
many of Europe's largest participants rushed into=20
each others' backyards to find new customers for=20
their fast-growing broadband or mobile units.=20
That left many of these companies with a=20
patchwork of assets across countries that often=20
lacked the scale to compete with the local=20
incumbent. The deals come as Europe's telecoms=20
try to devise strategies to survive in an=20
increasingly difficult market. Revenue in telecom=20
services across Europe grew less than 3% last=20
year, according to Idate Consulting & Research.=20
Fixed-phone revenue is dropping under pressure=20
from free Internet calling services like Skype,=20
while Europe's mobile-phone businesses, long a=20
reliable engine of growth, have been hit hard by=20
European Union regulations mandating lower=20
tariffs for consumers. The EU ordered a decrease=20
in roaming tariffs for cross-border calls and=20
lower charges for calls terminating on other=20
networks. Many had been expecting a more sweeping=20
consolidation among large European telecoms along=20
the lines of what has happened in the U.S., where=20
companies such as AT&T Corp. and SBC=20
Communications Inc. have merged in recent years=20
to cut costs and gain scale. But European telecom=20
operators can't reduce staff as easily, limiting=20
synergies from a merger. At Deutsche Telekom and=20
France T=E9l=E9com, many workers retain civil-servant=20
status from when the companies were state-owned,=20
making it almost impossible to lay them off.
http://online.wsj.com/article/SB118090969115423077.html?mod=3Dtodays_us_...
e_one
(requires subscription)

CUSTOMERS KEEPING THEIR CELLPHONES LONGER
[SOURCE: TelecomWeb]
The average cellular phone user is keeping his=20
handset 17.5 months, longer than has been the=20
case in the past, according to a new study by=20
J.D. Power and Associates. The length of=20
ownership is up from 16.6 months in just half a=20
year. While the difference may not seem that=20
great, it is the first increase in average=20
ownership spotted by J.D. Power since way back in=20
2002, when the average length of ownership was=20
18.4 months. "One possible reason for this=20
significant increase in the length of handset=20
ownership is that more customers are initiating=20
or renewing their service contracts for a longer=20
period -- typically for two years, as opposed to=20
just one year, which was customary a few years=20
ago," said Kirk Parsons, senior director of=20
wireless services at J.D. Power. Parsons also=20
warned that the increasing length of ownership=20
may be a double-edged sword for carrier. "While=20
these longer contracts help wireless carriers=20
recover the costs associated with offering=20
subsidized cell phones, customers tend to hold on=20
to their current cell phones longer to avoid=20
termination fees when switching service, which=20
may ultimately lead to lower renewal rates," he said.
http://www.telecomweb.com/tnd/23548.html

WIRELESS WILL DRIVE TELECOM FOR NEXT 5 YEARS
[SOURCE: TelecomWeb]
Speaking at a Sanford Bernstein conference=20
earlier this week, Randall Stephenson, who took=20
over from Edward Whitacre as CEO Sunday, said the=20
conversation about winning the race for=20
consumers' homes "starts and ends with wireless."=20
Characterizing the cable industry's view of=20
wireless as "lukewarm" (and implying a major=20
gaffe therein), Stephenson said wireless "is the=20
future of our business. It differentiates us in=20
the long term in the consumer and business markets."
http://www.telecomweb.com/tnd/23547.html

HEALTH AND MEDIA

FTC: NO RISE IN JUNK-FOOD ADS
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
In a move sure to give ammunition to food=20
marketers, the Federal Trade Commission said the=20
number of TV ads for =93junk=94 foods that kids see=20
has not increased over the past 30 years. Critics=20
of TV food marketing have argued that a rise in=20
such ads corresponds to the rise in childhood=20
obesity and point to their own data that diverges=20
dramatically from the FTC's. =93Our data do not=20
support the view that children are exposed to=20
more TV food ads today,=94 said the FTC, saying=20
that viewing of such ads has fallen by about 9%.=20
The FTC also says that there were not more ads=20
for low-nutrition foods in 2004 (when the study=20
was conducted) than in 1977, although it=20
essentially concedes that that means those foods=20
dominate just as much in 2004 as they did in=20
1977, with almost 95% of the ads for fast foods=20
and restaurants; cereal, mostly highly sugared;=20
desserts; sweets; snacks; and sweetened drinks.
http://www.broadcastingcable.com/article/CA6448605.html
* FTC press release
http://www.ftc.gov/opa/2007/06/childrenadsstudy.shtm
* Don't Starve Kids TV
[Commentary] Childhood obesity is a serious,=20
complex issue in need of thorough and thoughtful=20
solutions. Starving creativity and quality would be a hollow victory.
http://www.broadcastingcable.com/article/CA6448611.html

ENTERTAINING TV PROGRAMS MAKE YOU EAT, STUDY FINDS
[SOURCE: Reuters, AUTHOR: Jennifer Kwan]
People eat more when they are glued to the=20
television, and the more entertaining the=20
program, the more they eat, according to new=20
research by Dr. Alan Hirsch, neurological=20
director of the Smell and Taste Treatment and=20
Research Foundation in Chicago. It seems that=20
distracted brains do not notice what the mouth is doing.
http://today.reuters.com/news/NewsArticle.aspx?type=3DtelevisionNews&sto...
D=3D2007-06-03T154747Z_01_N02343437_RTRIDST_0_TELEVISION-OBESITY-DC.XML

OWNERSHIP

NBC STILL RATES AT GE
[SOURCE: Los Angeles Times, AUTHOR: Meg James]
for the last three TV seasons, once-dominant NBC=20
has finished fourth place in the prime-time=20
ratings and watched its advertising revenue drop=20
by nearly $1 billion. This spring, NBC posted=20
embarrassing multiyear lows in the ratings,=20
prompting frustrated NBC Universal executives=20
last week to sack the network's programming head,=20
Kevin Reilly, just three months after extending=20
his contract for three years. Now, some investors=20
are urging GE Chairman and Chief Executive=20
Jeffrey Immelt to shed his news and entertainment=20
empire, NBC Universal, to streamline the=20
industrial conglomerate and boost its stalled=20
stock price. "GE stock has basically gone=20
sideways for five years despite solid underlying=20
execution," Citigroup analyst Jeffrey Sprague=20
wrote in a recent report. The troubles at NBC=20
Universal are partly to blame, Sprague said.=20
Nevertheless, Immelt seems resolved -- at least=20
for now -- to hold onto NBC Universal. The=20
entertainment division, which last year brought=20
GE $16 billion in revenue, includes the NBC and=20
Telemundo broadcast networks and a group of TV=20
stations; Universal Studios theme parks and film=20
studios; cable TV channels MSNBC, CNBC, USA=20
Network, Bravo and Sci Fi; and Internet sites=20
including iVillage. "There are more reasons to=20
hang in there and see the business improve and=20
see how the next hand gets played as it pertains=20
to changes in the industry like digitization and=20
globalization," Immelt said in a wide-ranging=20
interview recently. "If I thought that content=20
was going to be less valued in a digitized age, I=20
would say, 'Boy, now might be the time to get=20
out,' " Immelt said. "I don't feel that way."
http://www.latimes.com/business/printedition/la-fi-immelt4jun04,1,477648...
tory?coll=3Dla-headlines-pe-business
(requires registration)

MURDOCH IN KEY TALKS OVER DOW
[SOURCE: Financial Times, AUTHOR: Aline van Duyn and Joshua Chaffin]
Rupert Murdoch will meet members of the Bancroft=20
family in New York on Monday in an effort to=20
persuade the owners of The Wall Street Journal=20
newspaper that he would continue its century-long=20
tradition of quality journalism if they accept=20
his $5 billion takeover offer. The meeting with=20
Dow Jones -- the Journal=92s parent company -- is a=20
key moment in Mr Murdoch=92s long-standing desire=20
to acquire one of the world=92s most influential=20
and prestigious media companies. It follows a=20
surprise announcement by the Bancrofts, who=20
control 64 per cent of Dow Jones=92s voting power,=20
last Thursday that they would meet Mr Murdoch to=20
discuss a possible sale in spite the family=92s=20
rejection of his offer in early May.
http://www.ft.com/cms/s/d8571dee-11fc-11dc-b963-000b5df10621.html
(requires subscription)
* Mr. Murdoch Comes Round for Tea
http://www.nytimes.com/2007/06/04/business/media/04carr.html

PRIVATE EQUITY FIRMS EYE TECH SECTOR
[SOURCE: New York Times, AUTHOR: Andrew Ross=20
Sorkin, John Markoff and Michael J. de la Merced]
Signaling growing interest by private equity=20
firms in the risky technology sector, Palm, the=20
struggling Sunnyvale smart-phone maker, reached a=20
deal Sunday to sell a quarter of the company to=20
Elevation Partners for about $325 million as part=20
of a plan to reorganize the company, according to=20
people involved in the negotiations. And Cadence=20
Design Systems, a San Jose maker of the software=20
used to design computer chips, is in talks with=20
at least two buyout firms about a possible sale=20
of the company, two people close to the matter=20
said Sunday. Buyout firms have avoided the=20
technology sector because of its volatility and=20
need for capital. As buyout firms have grown=20
bolder and more flush with cash, they may be=20
betting that they still can wring out lucrative returns.
http://www.siliconvalley.com/latestheadlines/ci_6055884
* Private equity firm buys into Palm
http://news.com.com/Private+equity+firm+buys+into+Palm/2100-1033_3-61883...
html?tag=3Dnefd.top

GOOGLE ACQUIRES WEB MEDIA DISTRIBUTOR FEEDBURNER
[SOURCE: Reuters, AUTHOR: Eric Auchard]
Google Inc. said on Friday it is acquiring=20
Feedburner Inc., bolstering the Internet=20
advertising leader's capacity to distribute both=20
media and advertising to blogs via Web=20
syndication technology. Terms of the deal were=20
not disclosed, a Google spokesman said. Various=20
blog reports in recent weeks had put the price of=20
a potential deal at about $100 million, but those=20
reports could not be confirmed. Feedburner is a=20
pioneer in the market for delivering the latest=20
updated information to other Web sites using=20
technology known as Really Simple Syndication=20
(RSS). Customers include the Wall Street Journal, BBC and Amazon.com.
http://www.reuters.com/article/internetNews/idUSN0134890220070601

QUICKLY

REGS FROM KATRINA AFTERMATH FALL SHORT, DEMS AT FCC CHARGE
[SOURCE: RCRWireless, AUTHOR: Jeffrey Silva]
The Federal Communications Commission ordered=20
wireless and wireline operators to have backup=20
power sources for telecom facilities and to=20
submit reports on the reliability of their 911=20
systems, but the agency=92s two Democrats said=20
carriers should be required to do more to better=20
maintain communications in the face of disasters.=20
=93This is not a report and order that brings a=20
proceeding to a close. It is an incremental step=20
against the backdrop of a challenge that will=20
continue to stalk us and might even get worse in=20
coming years as climate changes suggest more=20
frequent and more intense storms and disruptions=20
across much of the country,=94 stated Commissioner=20
Michael Copps. =93I also think that record that was=20
developed was too heavily skewed by the belief=97I=20
think the pernicious belief=97that the FCC either=20
will not or should not take a lead role in=20
mandating network resiliency standards. I simply=20
cannot accept this view,=94 Copps said. =93The=20
nation=92s experience with 9/11 and Hurricane=20
Katrina indicates to me that industry best=20
practices and voluntary best efforts are not by=20
themselves always going to get the job done.=94
http://www.rcrnews.com/apps/pbcs.dll/article?AID=3D/20070601/FREE/706010...
1005/rss01

PRESIDENTIAL HOPEFULS STAR ON GOOGLE'S STAGE
[SOURCE: San Francisco Chronicle, AUTHOR: Carla Marinucci]
In presidential campaigns, some classic settings=20
-- the New Hampshire pancake breakfast, the Iowa=20
school auditorium, the South Carolina church hall=20
-- have served as the stage for candidates hoping=20
to deliver their message up close and personal.=20
It may be time to add a new one -- the Mountain=20
View headquarters of the Internet search engine=20
and online advertising giant Google. With four=20
candidates having already made the pilgrimage --=20
Richardson, Edwards, McCain and New York Sen.=20
Hillary Rodham Clinton -- and the rest of the=20
pack invited, Google's unusual presidential "job=20
interview" town halls highlight how candidates=20
are searching for new and effective venues to lay=20
out their agendas in the competitive and crowded 2008 contest.
http://www.sfgate.com/cgi-bin/article.cgi?f=3D/c/a/2007/06/04/GOOGLEFORU...
MP

SURVEY POKES HOLES IN A LA CARTE
[SOURCE: Multichannel News, AUTHOR: Linda Haugsted]
A little over one-half of consumers surveyed by=20
Forrester Research in 2006 support a la carte=20
pricing of cable programming but have unrealistic=20
expectations of what it would cost for the=20
privilege of picking only the channels they want=20
to watch. Respondents indicated that they'd pick=20
a package of 26 channels for which they'd like to=20
pay $24 per month. That=92s about 53% of what they=20
currently pay for only one-quarter of the=20
channels in a typical expanded-basic package. And=20
it computes to about 10 cents per viewing hour=20
per week -- economics that would not financially=20
support program development or delivery,=20
according to the report. Cable viewers currently=20
spend about 22 cents per viewing hour, according to Forrester.
http://www.multichannel.com/article/CA6448549.html?rssid=3D196

STUDY: MUSIC, TECH SEARCH TERMS RISKIEST
[SOURCE: Associated Press]
Search terms related to music and technology are=20
most likely to return sites with spyware and=20
other malicious code, a new study finds. Some 42=20
percent of the results using the term=20
'screensavers,' for example, led to sites flagged=20
with a 'red' warning or a cautionary 'yellow' by=20
McAfee Inc.'s SiteAdvisor service. Other keywords=20
McAfee deemed risky include names of file-sharing=20
software. In many cases, the programs come=20
bundled with adware and toolbars McAfee considers=20
unwanted, according to McAfee's 'The State of=20
Search Engine Safety' report, scheduled for=20
release Monday. Nonetheless, McAfee found it=20
slightly safer to use search engines overall.=20
Although about 4 percent of search results lead=20
to sites deemed risky, that's down from 5 percent a year ago.
http://www.paloaltodailynews.com/article/hosted/209802903436222908774221...
5133395900041
* Online tunes are more risky than Web porn
About 9% of adult sites produce spyware, adware=20
or spam, compared with 19% of digital music sites found in a study by McAfe=
e.
http://www.latimes.com/business/printedition/la-fi-websafety4jun04,1,272...
0.story?coll=3Dla-headlines-pe-business

MAN CHARGED FOR PUTTING TV SHOW ON WEB
[SOURCE: Associated Press]
Federal authorities have charged a Rogers Park=20
Chicago man with copyright violations for=20
allegedly uploading several episodes of Fox's=20
''24'' on the Internet before the show's season=20
premiere earlier this year. The episodes appeared=20
online more than a week before their television=20
debuts on Jan. 14 and 15. The man was charged=20
with one felony count of uploading copyrighted=20
material to a publicly accessible computer=20
network knowing the work was intended for commercial distribution.
http://www.tvnewsday.com/articles/2007/06/03/daily.1/
--------------------------------------------------------------
Communications-related Headlines is a free online=20
news summary service provided by the Benton=20
Foundation (www.benton.org). Posted Monday=20
through Friday, this service provides updates on=20
important industry developments, policy issues,=20
and other related news events. While the=20
summaries are factually accurate, their often=20
informal tone does not always represent the tone=20
of the original articles. Headlines are compiled=20
by Kevin Taglang headlines( at )benton.org -- we welcome your comments.
--------------------------------------------------------------