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Big agenda for the FCC today. Tune in at http://www.fcc.gov/realaudio/

NEWS FROM FCC
Court backs FCC exemption of Web phone service
No Existing FCC Rule Blocks Merger, Sirius and XM Say
Cable Ownership Caps
FCC Proposes More Fines for Kids Rule Violations

DIGITAL CONTENT
Google's MCI Vet to fix 'Neutrality' Message
Congress Must Make Clear Copyright Laws To Protect Consumers
Crashing the Charts for Independent Music
News Corp., NBC pull together to challenge YouTube

MEDIA & CHILDREN
Obesity Task Force Aims for July Deadline
Now You See 'Em, Now You Don't
Video Game Decency Act returns

IN THE STATES
Missouri Gov. Expected to Sign Franchise Bill
Cable Part of Proposed Michigan Tax

QUICKLY -- You'd Know if You Were Congressional; Families keep in
touch, by video; Tribune focus returns to Zell; Marketers Have Eyes
on the 'Third Screen'; EC ponders Europe's emergency toll-free
service; Empower Teens and They'll Change the World

NEWS FROM FCC

COURT BACKS FCC EXEMPTION OF WEB PHONE SERVICE
[SOURCE: Reuters]
The U.S. Court of Appeals for the Eighth Circuit on Wednesday upheld
a decision that exempted Internet telephone companies like Vonage
from many state regulations and oversight, backing a 2004 decision by
the Federal Communications Commission that exempted Internet
telephone companies from rate regulation and from being required to
seek certification before offering service. "After carefully
considering the positions presented by both sides of this dispute, we
conclude the FCC did not arbitrarily or capriciously determine state
regulation of VoIP service would interfere with valid federal rules
or policies," the court decision said. The FCC said the court
decision affirms the agency's authority to act to provide for public
safety by requiring access to 911 emergency help, preserve universal
service and "further other critical goals in an equitable,
nondiscriminatory and competitively neutral manner."
http://www.reuters.com/article/technologyNews/idUSWAT00718120070321
* Court Backs FCC on VoIP Regulation
http://www.multichannel.com/article/CA6426491.html?display=Breaking+News

NO EXISTING FCC RULE BLOCKS MERGER, SIRIUS AND XM SAY
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
In a filing with the Securities and Exchange Commission on Wednesday
that announces their intention to merge, satellite companies Sirius
and XM say there is not a FCC rule that bars the merger. While
opponents of the merger have said the FCC said that "one licensee
will not be permitted to acquire control of the other" when it
created the satellite radio licenses in 1997, the companies argue
that the language was not codified. They say it is merely a policy
statement that can be changed, rather than "a binding FCC
regulation." Current FCC rules do not prohibit the transfer of the
licenses, they argue. B&C reports that FCC Chairman Martin shared
this from the 1997 order establishing satellite radio: "Transfers. We
note that DARS licensees, like other satellite licensees, will be
subject to rule 25.118, which prohibits transfers or assignments of
licenses except upon application to the Commission and upon a finding
by the Commission that the public interest would be served thereby.
Even after DARS licenses are granted, one licensee will not be
permitted to acquire control of the other remaining satellite DARS
license. This prohibition on transfer of control will help assure
sufficient continuing competition in the provision of satellite DARS service."
http://www.broadcastingcable.com/article/CA6426534.html?display=Breaking...
* XM, Sirius: What FCC Merger Ban?
http://www.multichannel.com/article/CA6426555.html?display=Breaking+News
* XM and Sirius File Merger Application With FCC
http://www.washingtonpost.com/wp-dyn/content/article/2007/03/21/AR200703...
* Sirius, XM to offer reduced price plan after deal
Sirius Satellite Radio and XM Satellite Radio expect to offer a
lower-priced package consisting of fewer channels after the companies
combine, Sirius said on Wednesday. "After the merger, customers may
elect to receive fewer channels at a monthly price lower than $12.95;
substantially similar programming at the existing $12.95 price; or
more channels ... at a modest premium to the cost of one service, and
considerably less than the cost of subscribing to both services," Sirius said.
http://www.reuters.com/article/technologyNews/idUSWEN562620070321
* FCC's Martin Likes Sound of Karmazin Rebate Proposal
FCC Chairman Kevin Martin said Wednesday that Mel Karmazin's proposal
to reimburse subscribers for blocked adult channels "may be a good
idea" with the caveat that he has yet to study it.
http://www.broadcastingcable.com/article/CA6426602.html?display=Breaking...

CABLE OWNERSHIP CAPS
[SOURCE: Media Access Project]
The Media Access Project filed a letter with the Federal
Communications Commission on behalf of 14 organizations applauding
reports that FCC Chairman Kevin Martin has circulated an order
reaffirming the FCC's 30% limit on the number of cable subscribers
any one company can control. The letter responds to statements by
cable incumbents in recent weeks that the cable market has become so
competitive that the FCC should repeal the ownership limit. "When
incumbent cable operators can simultaneously announce both record per
subscriber profits and a rate increase, "effective competition" does
not exist. When one considers that many of the same
large incumbent cable operators consistently rank near the bottom of
every customer satisfaction survey, the self-serving assertion of
cable operators that 'no real problem exists' and that the Commission
therefore 'lacks authority' to impose a 30% limit become laughable,"
the letter states. The organizations signing the letter are: Common
Cause, United States Conference of Catholic Bishops, United Church of
Christ, Consumers Union, Consumer Federation of America, Free Press,
U.S. PIRG, National Hispanic Media Coalition, Media Alliance, Center
for Digital Democracy, Center for Creative Voices, National Alliance
of Media Arts and Culture, CCTV Center for Media and Democracy, and
Reclaim the Media.
http://www.mediaaccess.org/press/3-21-07%20MAP%20Press%20Release.pdf
* Read the letter
http://www.mediaaccess.org/filings/3-21-07%20MAP%20Letter%20In%20Support...

FCC PROPOSES MORE FINES FOR KIDS RULE VIOLATIONS
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
The FCC has proposed another $26,000 in fines against TV stations --
in this case two Arkansas outlets owned by Clear Channel -- for what
it called "willful and repeated" violations of commercial limits in
children's programming and kids TV reporting violations.
http://www.broadcastingcable.com/article/CA6426530?display=Breaking+News

DIGITAL CONTENT

GOOGLE'S MCI VET TO FIX 'NEUTRALITY' MESSAGE
[SOURCE: GigaOM, AUTHOR: Paul Kapustka]
[Commentary] Fear not, network neutrality fans: Google is still on
your side, and is working hard to make sure its sometimes mixed
messages on the topic are more harmonious in the future. That was the
word from Rick Whitt Tuesday, as Google's new "Washington Telecom and
Media Counsel" made his net-neutrality big-stage debut, as part of a
panel at the Spring 2007 VON show in San Jose. Before mixing it up
with telco opponents at one of the historically premier events for NN
debate, Whitt wanted to clear up any doubts raised by some recent
public comments from other employees of the search colossus. "There
is no change in Google's [net neutrality] stance at all," said Whitt,
who didn't try to deny the quote from Senior Policy Counsel Andrew
McLaughlin -- "Net neutrality will ultimately be solved by
competition in the long-run" -- but rather to qualify it: "Andrew has
given that pitch a lot," said Whitt, who agreed that in the long run
-- "about 20 years" -- competition might make net neutrality moot.
"But it [broadband competition] is not there anytime soon, and that's
why now a strong network neutrality [law] has to be the solution."
http://gigaom.com/2007/03/21/googles-mci-vet-to-fix-neutrality-message/

CONGRESS MUST MAKE CLEAR COPYRIGHT LAWS TO PROTECT CONSUMERS
[SOURCE: Wall Street Journal, AUTHOR: Walter Mossberg]
[Commentary] Consumers won't be a party to the Viacom-YouTube case
any more than they were in the room when the latest major copyright
law was passed by Congress. That law, the 1998 Digital Millennium
Copyright Act, was enacted at the behest of record labels and movie
studios. Their purpose was to stop people from using computers and
the Internet to distribute digital copies of material to which they
didn't hold either the copyright or a distribution license. We need a
new digital copyright law that would draw a line between modest
sharing of a few songs or video clips and the real piracy of mass
distribution. We need a new law that would define fair use for the
digital era and lay out clearly the rights of consumers who pay for
digital content, as well as the rights and responsibilities of
Internet companies. If you don't like all of the restrictions on the
use of digital content, the solution isn't to steal the stuff. A
better course is to pressure Congress to pass a new copyright law,
one that protects the little guy and the Internet itself.
http://online.wsj.com/article/SB117452094467244796.html?mod=todays_us_ma...
(requires subscription)

CRASHING THE CHARTS FOR INDEPENDENT MUSIC
[SOURCE: Washington Post, AUTHOR: Mike Musgrove]
Today might be a bigger day than usual for an unsigned California
band called Black Lab, whose song "Mine Again" has become an anthem
of sorts for podcasters hoping to make a point. The goal is to get
enough music fans to buy copies of "Mine Again" to land the song on
Apple's iTunes bestseller list -- and in doing so prove that bloggers
and podcast hosts have market-moving power.
http://www.washingtonpost.com/wp-dyn/content/article/2007/03/21/AR200703...
(requires registration)
* Podcasters aim to push song to top of iTunes chart
http://www.siliconvalley.com/mld/siliconvalley/16946520.htm

NEWS CORP, NBC PULL TOGETHER TO CHALLENGE YOUTUBE
[SOURCE: Los Angeles Times, AUTHOR: Meg James and Dawn C. Chmielewski]
Several media giants are teaming up to challenge Google Inc. and its
YouTube video-sharing service, seeking to blunt their incursion into
the entertainment business. News Corp. and NBC Universal plan to
announce as soon as today that they are creating an online video site
stocked with TV shows and movies, plus clips that users can modify
and share with friends, according to people close to the
negotiations. The two companies enlisted help from some of Google's
biggest Internet rivals. The News Corp.-NBC Universal partnership has
deals with Yahoo Inc., Microsoft Corp., Time Warner Inc.'s AOL and
News Corp.'s MySpace to place videos in front of their collective
audience of hundreds of millions. Despite Hollywood's dismal track
record in creating successful joint ventures, these players see
little choice but to band together to compete against Google and
Apple Inc., which are becoming powerful distributors of entertainment.
http://www.latimes.com/news/printedition/front/la-fi-youtube22mar22,1,40...
(requires registration)

MEDIA & CHILDREN

OBESITY TASK FORCE AIMS FOR JULY DEADLINE
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
The chairman of the Task Force on Media and Childhood Obesity said on
Wednesday that the group planned to report back to Congress and the
FCC in mid July with recommendations for attacking the growing health
crisis of childhood obesity. The first meeting of the task force ,
which was postponed from February 14 because of weather, was the idea
of either Senator Sam Brownback (R-KS) or FCC Chairman Kevin Martin.
Both gave the other the credit for the idea. Sen Brownback said the
first and last meeting would be public, and there would be private
meetings in between to hash out ideas and best practices. Task Force
Chairman Gary Knell of Sesame Workshop said that the goal was not to
have a food fight, but to jointly issue a "declaration" on how to
attack the problem, come up with an "inventory" of best practices
that can be shared, and announce joint collaborations. Sen Sam
Brownback said the time for finger pointing on the issue of childhood
obesity was over. It's time for action, he said. But Dan Jaffe, EVP
of government relations for the Association of National Advertisers,
took the opportunity to point a finger at government. He said that
while the industry had done a lot already to address the problem,
like revamping its self-regulations and spending billions on
education and engineering marketing to emphasize more healthy foods,
they had not done enough and response had not been uniform across all
sectors. He said that government had reduced or eliminated physical
education programs and had not provided sufficient funding for
nutrition education. He said he hoped one of the results of the task
force would be for government to step up and restore those programs.
http://www.broadcastingcable.com/article/CA6426599.html?display=Breaking...
* Sen Brownback press release:
http://brownback.senate.gov/pressapp/record.cfm?id=271054
Chairman Martin's remarks:
http://www.fcc.gov/commissioners/martin/martin_taskforcespeech.pdf
FCC Commissioner Copps:
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-271677A1.doc
Commissioner Tate:
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-271678A1.doc
* Tate wants more fruits, vegetables on TV
http://news.yahoo.com/s/nm/20070322/tv_nm/fcc_dc

NOW YOU SEE 'EM, NOW YOU DON'T: GENDER & RACIAL DISPARITY IN TV FOR CHILDREN
[SOURCE: See Jane Run and Dads & Daughters, AUTHOR: Joe Kelly & Stacy Smith]
See Jane Run released a new report that documents a lack of diversity
in television programming for children. USC researchers coded
thousands of speaking characters in more than 1,100 children's movies
and TV shows. "Now You See 'Em, Now You Don't" analyzes the ratio of
male and female characters in television shows created for young
children and how frequently these characters occupy narrowly
prescribed gender roles. The research shows some areas of progress,
but many areas of stubbornly entrenched gender and racial imbalance
remain in children's entertainment.
http://www.seejane.org/pdfs/TV.disparity.pdf

VIDEO GAME DECENCY ACT RETURNS
[SOURCE: C-Net|News.com, AUTHOR: Brendan Sinclair]
Rep. Fred Upton (R-MI) last week introduced the Video Game Decency
Act of 2007 to the House of Representatives, where it was quickly
referred to the House Committee on Energy and Commerce. The bill aims
to criminalize any attempt to obtain a less-restrictive age-related
rating on a game by failing to disclose the game's true contents to
the Entertainment Software Rating Board.
http://news.com.com/Video+Game+Decency+Act+returns/2100-1043_3-6169267.h...

IN THE STATES

MISSOURI GOV EXPECTED TO SIGN FRANCHISE BILL
[SOURCE: Multichannel News, AUTHOR: Linda Haugsted]
Missouri Gov. Matt Blunt is expected to sign a bill that will assign
video franchising authority to the state's Public Service Commission.
The language of the bill was negotiated between the state's Municipal
League, potential new provider AT&T and incumbent cable operators.
However, three provisions that the incumbents sought to add to the
bill were cut from the final version, which was overwhelmingly
approved by the state Senate (32-2) and House (143-4). Cable
companies argued that the new legislation should require state-based
fees on direct-broadcast satellite service. That would equalize the
tax burden to customers of cable, Internet-protocol television and
DBS, the companies argued. Also, companies lobbied for
non-severability language. If one part of the new regulation is
struck down by the courts or through a ruling by the Federal
Communications Commission, the whole bill should become void. But
legislators did not agree and refused those amendments to the bill.
http://www.multichannel.com/article/CA6426584.html?display=Breaking+News

CABLE PART OF PROPOSED MICHIGAN TAX
[SOURCE: Multichannel News, AUTHOR: Linda Haugsted]
Video providers in Michigan are waiting to see if legislators act on
a budget proposal from Gov. Jennifer Granholm that would place a 2%
tax on a range of services, from janitorial contracts to cable TV.
The state is facing a $900 million deficit, with the prospect of a
revenue shortfall next year when a business tax expires. The governor
has stated that revenue measures need to be in place by June 1 to
avoid cuts in state services. "We're definitely opposed to a 2% tax,"
said Chris Horak, government-affairs director for the Michigan Cable
Telecommunications Association. Cable operators have been meeting
individually with legislators to express their objections to a new tax.
http://www.multichannel.com/article/CA6426477.html?display=Breaking+News

QUICKLY

YOU'D KNOW IF YOU WERE CONGRESSIONAL
[SOURCE: Washington Post, AUTHOR: Elizabeth Williamson]
This week, Congressional Research Service chief Daniel P. Mulhollan
issued a memo to all staffers in the service, known as Congress's
think tank. From now on, he wrote, CRS researchers will require a
supervisor's approval before giving any CRS report to a
"non-congressional" -- that is fellow researchers in "U.S. government
entities and nongovernmental entities, the media and foreign
governments, like embassies. The CRS works exclusively for Congress
and is legendarily closefisted with its reports. For years,
open-government groups and some members of Congress have fought
unsuccessfully to put the reports online. Now it comes out that CRS
researchers have been trading reports like baseball cards with these
special non-congressionals, sharing knowledge on North Korean
counterfeiting, wheat subsidies and other topics commissioned by
Congress. That can continue, according to Mulhollan's memo, but
"prior approval should now be requested at the division or office level."
http://www.washingtonpost.com/wp-dyn/content/article/2007/03/21/AR200703...
(requires registration)
* Not Congressional? Try Open CRS
http://www.opencrs.com/

FAMILIES KEEP IN TOUCH, BY VIDEO
[SOURCE: Reuters]
A growing number of immigrants in the United States are staying in
touch through videoconferencing technology developed for use in the
corporate world. Entrepreneurs from California to New Jersey are
connecting relatives using high-quality cameras and fast broadband
Internet links, helping them to maintain family ties at a cost of $40
for half an hour. The service connects offices placed near consulates
or wire transfer agencies in Latino neighborhoods in the United
States with an ever-expanding network of offices across Mexico,
Central America and South America. Growth is driven by strong demand
among Latin American immigrants, some 15 million of whom live in the
United States both legally and illegally, coupled with falling costs
for broadband and videoconferencing technologies.
http://www.latimes.com/business/printedition/la-fi-video22mar22,1,538463...
(requires registration)

TRIBUNE FOCUS RETURNS TO ZELL
[SOURCE: Chicago Tribune, AUTHOR: Michael Oneal]
Chicago billionaire Sam Zell, whose proposal to take Tribune Co.
private fell out of favor last week, has regained the attention of
the independent directors reviewing strategic options for the media
giant. Tribune's special committee met via conference call Wednesday
night to review Zell's proposal, which these sources believe was
altered to change the mix of debt and equity. It was one of a series
of such meetings that one source said is expected to lead up to a
full board meeting on March 30, when the company is scheduled to make
a decision about its future after six months of deliberation. The
outcome of the meeting, if any, was unclear.
http://www.chicagotribune.com/business/chi-0703210689mar22,0,5304690.sto...

MARKETERS HAVE EYES ON THE 'THIRD SCREEN'
[SOURCE: New York Times, AUTHOR: Eric Pfanner]
Last week in London, the Online Publishers Association released a
study showing that mobile Internet use was on the rise, as was
acceptance of mobile advertising. So publishers and other content
providers are trying to avoid coming in late on a possible advertising bonanza.
http://www.nytimes.com/2007/03/22/business/media/22adco.html
(requires registration)

EC PONDERS EUROPE'S EMERGENCY TOLL-FREE SERVICE
[SOURCE: C-Net|News.com, AUTHOR: Jo Best]
Following the creation of a Europe-wide toll-free number for
reporting missing children, the European Commission is investigating
what more can be done with such numbers across the continent. The
Commission's information society and media commissioner, Viviane
Reding, said the EC is now considering future six-digit pan-European
"free-phone" numbers, to start with 116, including a helpline for
children. The number for reporting missing children is 116000.
According to the Commission, the 116 range of numbers will be
reserved for services that "will help citizens in difficulty or
contribute to their well-being or safety." The Commission is now
fielding suggestions from the public on possible uses of such
numbers. The Commission will then decide which services to adopt and
allow individual member states to allocate the numbers to appropriate
organizations within the country.
http://news.com.com/EC+ponders+Europes+emergency+toll-free+service/2100-...

EMPOWER TEENS AND THEY'LL CHANGE THE WORLD
[SOURCE: AdAge, AUTHOR: Bob Jeffery]
[Commentary] A fifteen year-old, well-connected boy, a light bulb, an
idea. "The young do not know enough to be prudent, and therefore they
attempt the impossible -- and achieve it, generation after generation."
http://adage.com/cmostrategy/article?article_id=115575
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