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TELECOM/NET NEUTRALITY
On Friday we posted news of the FCC's approval of the AT&T-BellSouth merge=
r.
See a recap of coverage at http://www.benton.org/index.php?q=3Dnode/4=
346
AT&T-BellSouth deal called 'Breakthrough' for Consumers
AT&T Plans Push in Wireless, Ads
Industry Braces for Net Neutrality Fallout
Net Discrimination
The Net-Neutrality Spinners

NEWS FROM FCC
Franchise Freedom
FCC Scraps Per-Channel Cable Price Tally
New Chiefs of Wireless Telecommunications,=20
Consumer and Governmental Affairs Bureaus
New Universal Service Monitoring Report
Indecency Complaints: the Roller Coaster Statistics Continue
A privatized national public safety network?
FCC: Calling All TV Spectrum Sharers
ARM Challenges TV-Station License Renewals in Portland

MEDIA OWNERSHIP
FCC's Martin Posts Media Ownership Studies
News Corp., Liberty Outline $11B Asset Swap

PREDICTIONS
Forecast 2007
Media groups are grappling with a drift of revenue to the web
Ailing music biz set to relax digital restrictions

INTERNET/BROADBAND
Young Turn to Web Sites Without Rules
Wi-Fi Is Hitting the Road in Cars, but Technical and Legal Bumps Lie Ahead

QUICKLY -- Mainstream, new media getting a weekly=20
checkup; Nonrenewal of TV License Stokes Debate=20
in Venezuela; Ford Praised for Pushing Politics=20
on the Airwaves; Court Gets Some Kudos For=20
Campaign Ad Call; Untangle the Web with RSS

TELECOM/NET NEUTRALITY

AT&T-BELLSOUTH DEAL CALLED 'BREAKTHROUGH' FOR CONSUMERS
[SOURCE: USAToday, AUTHOR: Leslie Cauley]
The Federal Communications Commission's handling=20
of the $85 billion AT&T-BellSouth merger sets a=20
"new baseline" for protecting the interests of=20
consumers, FCC Commissioner Jonathan Adelstein=20
said in an interview over the weekend. The FCC's=20
approval of the merger on Friday allowed the deal=20
to close immediately. To secure the FCC's=20
blessing, AT&T agreed to a list of=20
consumer-friendly concessions. Among them: For=20
the next 30 months, AT&T agreed to sell "naked"=20
DSL -- meaning consumers don't have to buy any=20
other service from AT&T to get the DSL service =97=20
for just $19.95 a month. That's less than half=20
the $44.95 that AT&T now charges. AT&T also=20
agreed to a "net neutrality" provision that will=20
require the company to treat all broadband=20
services, its own as well as rivals', equally for=20
the next two years. That means AT&T can't favor=20
its own traffic, in terms of transmission speed=20
and quality. In addition, AT&T agreed to sell=20
some unused wireless spectrum. That could enable=20
a new rival to enter the market, creating more=20
options for consumers. Commissioner Adelstein=20
called the settlement a "breakthrough" for=20
consumers in that it establishes a new standard=20
of behavior for the USA's communications giants.=20
Big companies such as AT&T and Comcast "have told=20
the FCC that they can't live with a net=20
neutrality provision in place," Adelstein said.=20
"They can." The fact that AT&T agreed to such an=20
aggressive net neutrality clause proves that, he=20
said. Though the settlement applies only to AT&T,=20
other companies will be hard-pressed to ignore=20
it, says Gene Kimmelman, public policy director=20
of Consumers Union. "There will be enormous=20
scrutiny of any company that does not live by=20
these standards." The concession on naked DSL is=20
significant, Kimmelman says, because it will=20
permit consumers to buy DSL and phone services=20
from different companies without being=20
financially penalized. Right now, he notes, AT&T=20
charges as much for naked DSL as it does for DSL and phone combined.
http://www.usatoday.com/printedition/money/20070102/fcc02.art.htm

AT&T PLANS PUSH IN WIRELESS, ADS
[SOURCE: Wall Street Journal, AUTHOR: Amol Sharma=20
amol.sharma( at )wsj.com and Almar Latour ]
AT&T which became the world's largest telecom=20
company by closing the $86 billion acquisition of=20
BellSouth, will aggressively push new wireless=20
services to corporate customers and consumers,=20
and make advertising a key revenue stream,=20
according to Chairman and Chief Executive Edward=20
E. Whitacre Jr. With full control of cellphone=20
operator Cingular Wireless, formerly a=20
joint-venture with BellSouth, the San=20
Antonio-based phone company will begin selling=20
AT&T-branded wireless services to its large pool=20
of corporate phone and Internet customers,=20
allowing it to offer discounts for bundles that=20
were impossible when Cingular was a separate=20
entity. AT&T also will begin selling advertising=20
on cellphones, television and its Internet-access=20
service this year, allowing advertisers to reach=20
consumers across multiple platforms with a single=20
operator. Advertisers will be able to buy spots=20
for TV and broadband beginning early this year,=20
with wireless ads following suit later this year.=20
The advertising business could generate several=20
billion dollars in revenue per year in the next=20
five years, the company says. AT&T is embarking=20
on its wireless push after a year in which its=20
shares rose 46% as investors applauded two years=20
of deal making, including the acquisitions of=20
BellSouth, AT&T Wireless and the former AT&T=20
Corp. Analysts expect industry consolidation to=20
continue, particularly among smaller regional=20
wireless carriers. AT&T now has 58.7 million=20
wireless customers, 67.5 million local-phone=20
customers as well as corporate accounts with all=20
of the Fortune 1000 companies. In addition to=20
wireless and advertising, its other key growth=20
engines in coming years will be its nascent=20
Internet-based television service as well as=20
overseas operations, particular among corporate customers.
http://online.wsj.com/article/SB116769013548264242.html?mod=3Dtodays_us_...
e_one
(requires subscription)

INDUSTRY BRACES FOR NET NEUTRALITY FALLOUT
[SOURCE: Wall Street Journal, AUTHOR: Amy Schatz Amy.Schatz( at )wsj.com]
AT&T's capitulation on the issue of "net=20
neutrality," which led U.S. regulators to approve=20
its $86 billion purchase of BellSouth, may have=20
consequences far beyond the company. Supporters=20
of net-neutrality rules, which require equal=20
treatment of all traffic from the Internet=20
backbone to a consumer's PC, say AT&T's agreement=20
provides a template for future legislation and=20
may at least temporarily hinder hopes of other=20
telecom and cable companies from monetizing their=20
Internet lines by charging companies such as=20
Google or Amazon.com to give their traffic=20
priority and faster service. The net-neutrality=20
condition expires in two years. The FCC=20
specifically exempted AT&T's Cingular wireless=20
business and the portion of its network dedicated=20
to providing its Internet television service from=20
the conditions. Other telecom companies aren't=20
required to abide by the conditions agreed to by=20
AT&T, but many may feel compelled to do so=20
because of the public backlash they would face by=20
ignoring them. FCC Chairman Kevin Martin doesn't=20
believe net-neutrality rules are necessary=20
because there hasn't been evidence of problems,=20
and he has enough votes among his Republican=20
colleagues on the five-member board to block=20
them. On Friday, he offered a rebuke to the FCC's=20
two Democrats, calling the net-neutrality=20
conditions they extracted from AT&T "unnecessary"=20
and "discriminatory." He stopped just short of=20
vowing that no new industrywide net-neutrality rule would pass under his wa=
tch.
http://online.wsj.com/article/SB116768394926464050.html?mod=3Dtodays_us_...
e_one
(requires subscription)

NET DISCRIMINATION
[SOURCE: Wall Street Journal, AUTHOR: Editorial Staff]
[Commentary] The more important question in this=20
episode is political: Have we been watching a=20
return of the Old Democratic habit of using=20
rhetoric about "equity" and "justice" as a front=20
for carrying water for certain business interests=20
over others? The one thing no one should be=20
deceived about is that this ambush has anything=20
to do with "consumers." Internet users will=20
benefit most from the rapid rollout of broadband,=20
which requires letting companies get a return on=20
their investment. Net neutrality is all about=20
imposing price controls that shake down one=20
corporate player for the benefit of another.
http://online.wsj.com/article/SB116768329181264029.html?mod=3Dtodays_us_...
nion
(requires subscription)

THE NET NEUTRALITY SPINNERS
[SOURCE: Broadcasting&Cable, AUTHOR: Larry Honig]
[Commentary] Internet politics creates peculiar=20
alliances. The oddest yet may be Google and best=20
pal Microsoft teaming up to fight off attempts by=20
broadband pipe owners (like Comcast and Verizon)=20
to charge certain heavy content suppliers (like=20
Google and Microsoft) more to use their networks=20
than other suppliers (like Comcast and Verizon).=20
Instead of defending a frozen concept of neutral=20
access, the FCC may better serve the public=20
interest by letting network owners have their=20
way, as long as the FCC also adds open spectrum.=20
That would allow free Wi-Max, a more wide-ranging=20
wireless Internet service than Wi-Fi, to more=20
effectively compete with fast but pricey private=20
wirelines, ensuring real net neutrality.
http://www.broadcastingcable.com/article/CA6403240.html?display=3DOpinion

NEWS FROM FCC

FRANCHISE REFORM
[SOURCE: Wall Street Journal, AUTHOR: Editorial Staff]
[Commentary] The Federal Communications=20
Commission deserves full marks for its ruling=20
last month that will make it easier for phone=20
companies to enter the cable television business.=20
The usual suspects are crying foul, but this is a=20
decision that really will help millions of=20
consumers who are currently paying cable rates=20
dictated by anticompetitive video franchise=20
agreements. The FCC's action is an attempt to=20
streamline this process and eliminate the=20
shake-downs that municipalities have been using=20
to circumvent the 5% franchise fee cap. Under the=20
new rules, states and local authorities must=20
complete negotiations within 90 days. They also=20
won't be allowed to impose "unreasonable"=20
build-out requirements, such as demanding that=20
phone companies offer their services everywhere=20
that cable firms do within months of being=20
granted a franchise agreement. We'd just as soon=20
see such requirements scrapped altogether --=20
after all, the Bells are entering a competitive=20
market with no guarantee of success -- but this=20
is a step in the right direction. In the wake of=20
the FCC's party-line 3-2 ruling, in which the=20
agency's two Democrats dissented, the cable lobby=20
is complaining that phone companies are receiving=20
preferential treatment. Democratic Commissioner=20
Jonathan Adelstein told reporters that the=20
decision "undermines" local authority, by which=20
he means poaching by thousands of local=20
politicians. In fact, it's the local franchising=20
authorities who have been undermining competition=20
by protecting incumbents. And the cable=20
industry's complaints are unpersuasive at best.=20
Cable companies have marched right into the=20
telephony market, making it more competitive,=20
without facing the regulatory hurdles they want=20
kept in place to prevent video competition from=20
the Bells. Far from playing favorites, the new=20
FCC rules aim to make the telecom playing field=20
more level. They were long overdue.
http://online.wsj.com/article/SB116768346542164038.html?mod=3Dtodays_us_...
nion
(requires subscription)

FCC SCRAPES PER-CHANNEL CABLE PRICE TALLY
[SOURCE: Broadcasting&Cable 12/28, AUTHOR: John Eggerton]
In its most recent cable pricing survey, released=20
Wednesday, the FCC dropped its per-channel=20
accounting of cable rates. That is the figure,=20
often pointed to by the cable industry, that goes=20
beyond the raw price increase to include the=20
increasing number of channels that price covers.=20
The FCC had previously included that figure, but=20
said it was dropping it because "operators do not=20
permit consumers to purchase channels included in=20
the expanded basic package on an individual=20
basis." FCC has pushed the cable industry to=20
offer its service a la carte. Even releasing a=20
study that countered one by the previous chairman=20
finding that a la carte was not economically=20
feasible. "If cable operators offered consumers=20
the option to purchase channels individually, it=20
would be appropriate to consider the prices=20
charged to consumers for those channels," the FCC=20
said in releasing its report. As it is, said the=20
FCC, "the use of this data...would suggest that=20
quality-adjusted prices would be unchanged if=20
there were a 10 percent increase in monthly cable=20
rates and a 10 percent increase in the number of=20
channels; however, this does not take into=20
account how consumers might value the additional=20
channels.In particular, a consumer who placed no=20
value on the additional channels would see a 10=20
percent increase in his or her monthly cable=20
rates, but no increase in quality."
http://www.broadcastingcable.com/article/CA6403073?title=3DArticle&space...
c=3Dnews
* FCC Releases Report on 2005 Cable Industry Prices
http://hraunfoss.fcc.gov/edocs_public/attachmatch/FCC-06-179A1.doc
* Martin FCC Purges Per-Channel Rates
http://www.multichannel.com/article/CA6402861.html?display=3DBreaking+News
** In related story see:
McSlarrow Faces Changes
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
NCTA President Kyle McSlarrow is a veteran=20
Republican who faces a new Democratic majority in=20
Congress. He is a free-market fan who is up=20
against an FCC chairman who has hammered the=20
industry on cable rates, tried to impose=20
multicast must-carry and has pushed for =E0 la=20
carte cable programming and family tiers. In this=20
Q&A, McSlarrow talks about DBS cowboy John=20
Malone, digital must-carry and keeping customers satisfied.
http://www.broadcastingcable.com/article/CA6403296.html?display=3DNews
* McSlarrow: 'Micro=92 Puzzled
http://www.multichannel.com/article/CA6403284.html?display=3DTop+Stories

CHAIRMAN MARTIN ANNOUNCES NEW CHIEFS OF WIRELESS=20
TELECOMMUNICATIONS & CONSUMER AND GOVERNMENTAL AFFAIRS BUREAUS
[SOURCE: Federal Communications Commission 12/29]
Federal Communications Commission Chairman Kevin=20
J. Martin named Fred Campbell as Chief of the=20
Wireless Telecommunications Bureau and Catherine=20
Seidel as Chief of the Consumer and Governmental=20
Affairs Bureau. 1) Fred Campbell most recently=20
served as Chairman Martin's Legal Advisor for=20
wireless issues, and previously served as an=20
Attorney Advisor in the Wireline Competition=20
Bureau. Prior to joining the Commission, Mr.=20
Campbell worked at Harris, Wiltshire & Grannis,=20
where he advised on a broad range of legal issues=20
associated with the provision of domestic and=20
international telecommunications services. Mr.=20
Campbell previously practiced commercial=20
litigation with the law firm of Wolfe=20
Snowden. He also served as an adjunct faculty=20
member at the University of Nebraska College of=20
Law and as a law clerk to the Honorable William=20
M. Connolly of the Nebraska Supreme Court. Prior=20
to beginning his career in the legal profession,=20
Mr. Campbell served in the United States=20
Army. Mr. Campbell earned his B.A. from the=20
University of the State of New York and his J.D.,=20
with high distinction, from the University of=20
Nebraska College of Law. 2) Catherine Seidel has=20
been the Acting Chief of Wireless=20
Telecommunications Bureau (WTB) since April of=20
2005. Ms. Seidel has also served as a Deputy=20
Bureau Chief and Chief of Staff for the=20
WTB. Previously, she served as the Chief of the=20
Telecommunications Consumers Division in the=20
Enforcement Bureau and has also held positions in=20
the Common Carrier Bureau and the Mass Media=20
Bureau. Prior to joining the Commission in 1993,=20
Ms. Seidel worked at Bell Atlantic for almost ten=20
years. Ms. Seidel holds a J.D. degree from the=20
University of Maryland Law School, a Master's=20
degree in Administrative Sciences from the Johns=20
Hopkins University, and a Bachelor of Science=20
degree in Economics from Colorado State University.
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-269273A1.doc

FEDERAL-STATE UNIVERSAL SERVICE JOINT BOARD STAFF RELEASES MONITORING REPORT
[SOURCE: Federal Communications Commission]
The staff of the Federal-State Joint Board on=20
Universal Service has released its most recent=20
Monitoring Report on Universal Service. This=20
report reflects information on the telephone=20
industry filed with the Federal Communications=20
Commission through May 2006. This report, with a=20
few exceptions, reflects data filed with the FCC=20
by the telephone industry for the year 2005 and=20
prior years. The report released Friday addresses=20
the various universal service support mechanisms,=20
which amounted to about $6.5 billion in 2005. In=20
2005, disbursements among the four categories of=20
universal service mechanisms were: 58.7% for=20
high-cost support; 28.6% for schools and=20
libraries support; 12.4% for low-income support;=20
and 0.4% for rural health care support. The=20
report presents data in eleven categories=20
including: 1) Industry Revenues and=20
Contributions, 2) support for Low-income,=20
High-Cost, Schools and Libraries & Rural Health=20
care, 3) Subscribership levels, 4) rates and 5)=20
Quality of Service. Wireline Competition Bureau=20
contact: Alexander Belinfante at (202) 418-0944; TTY (202) 418-0484.
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-269242A1.doc
* Full report:=20
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-269251A1.pdf

INDECENCY COMPLAINTS: THE ROLLER COASTER STATISTICS CONTINUE
[SOURCE: Lasar's Letter on the FCC, AUTHOR: Matthew Lasar]
Consumer indecency complaints continued their=20
jagged, unpredictable pattern for the third=20
quarter of 2006, FCC statistics indicate. The=20
latest stats, issued on December 29th, indicate=20
that the agency received 26,843=20
"indecency/obscenity" complaints in July, down to=20
3,108 in August, shooting up to 163,553 in=20
September. In contrast, "general criticism"=20
complaints remained steady at between 206 to=20
almost 250 filings for the same three months.=20
These figures conform to a "roller coaster"=20
pattern for indecency complaints that goes back=20
several years. 11,326 consumers filed indecency=20
or obscenity complaints with the FCC in April of=20
this year, the FCC reports, followed by 40,000 in=20
May. But in June only 741 consumers lodged such complaints.
http://www.lasarletter.net/drupal/node/274

A PRIVATIZED NATIONAL PUBLIC SAFETY NETWORK?
[SOURCE: Lasar's Letter on the FCC, AUTHOR: Matthew Lasar]
It will operate almost 250 video and broadband=20
channels, and be allowed to access hundreds more=20
under certain conditions. It will allow thousands=20
public safety agencies to exchange data about=20
weather emergencies and potential terrorist=20
attacks. It will enable police agencies to=20
exchange mug shots, fingerprints, and share=20
real-time video monitoring of emergency or=20
potentially criminal situations. And it will be=20
run by a commercial entity that charges on a=20
fee-for-service basis, even permitted to market=20
spectrum to other companies "through leases or in=20
the form of public/private partnerships." On=20
December 20th the Federal Communications=20
Commission issued a Ninth Notice of Proposed=20
Rulemaking (NPRM) on how to use the 700 MHz band=20
for public safety purposes. "We believe that the=20
time may have come for a significant departure=20
from the typical public safety allocation model=20
the Commission has used in the past," the Notice=20
argues. In fact, what the NPRM proposes could be=20
described as radical=97a highly centralized,=20
privately run emergency communications system=20
that the document claims will function as a=20
non-profit, yet could be allowed to lease out=20
spectrum using a model similar to that recently=20
proposed by the Microsoft Corporation in a series=20
of FCC filings. Here it is, the future of public=20
safety communications as envisioned by Kevin Martin's FCC.
http://www.lasarletter.net/drupal/node/272

FCC : CALLING ALL SPECTRUM SHARERS
[SOURCE: Broadcasting&Cable 12/22, AUTHOR: John Eggerton]
The FCC has asked tech types to submit the=20
low-power devices the FCC wants to allow to=20
operate in the so-called white spaces between TV=20
channels in the broadcast band. The Commission=20
has not yet decided whether to license them or=20
allow them to operate unlicensed. The latter=20
scenario particularly troubles broadcasters, who=20
argue that unlicensed devices could interfere,=20
literally, with the transition to digital TV.=20
Without licensing, the FCC would be hard pressed=20
to get all those genies back in the bottle,=20
broadcasters argue. Parties who want to submit=20
prototypes are asked to make arrangements with the Commission by Jan. 29.
http://www.broadcastingcable.com/article/CA6402425.html?display=3DBreaki...
News

ARM CHALLENGES TV STATION LICENSE RENEWALS IN PORTLAND
[SOURCE: Broadcasting&Cable 12/26, AUTHOR: John Eggerton]
The Oregon Alliance to Reform Media, or ARM, has=20
filed a petition at the FCC to deny its renewal=20
of all the commercial TV station licenses in=20
Portland (OR), saying its coverage of elections=20
does not meet the FCC's standard of=20
public-interest service, which is to meet the=20
needs of the community. The group uses as=20
supporting material a study from the Campaign=20
Media Legal Center that found that, in the four=20
weeks prior to the election in 2004, less than 1%=20
of newscasts were devoted to coverage of state=20
elections, about 9% to ballot issues and less=20
than 1% to local elections. The group claims the=20
study covered "substantially all of the regularly=20
scheduled locally produced news available in=20
Portland." The group argues that the FCC must at=20
least designate the license challenge for=20
hearing--something it rarely does--saying that=20
its petition raises "substantial and material=20
questions of fact" that make that designation mandatory.
http://www.broadcastingcable.com/article/CA6402730?title=3DArticle&space...
c=3Dnews

MEDIA OWNERSHIP

FCC'S MARTIN POSTS MEDIA OWNERSHIP STUDIES
[SOURCE: TVWeek, AUTHOR: Ira Teinowitz]
Federal Communications Commission Chairman Kevin=20
Martin moved Friday to deflect congressional=20
charges that the FCC repressed unfavorable media=20
ownership studies by posting online a new FCC=20
study along with studies the Commission did back=20
to 1982. The FCC's Media Bureau suggested in a=20
statement Friday that some of the older studies=20
could be "internal documents" and might be=20
withheld. It said that responding to the=20
Chairman's request it was releasing the reports=20
in an exercise of discretion "in light of the=20
unique circumstances present in this instance -=20
principally, the FCC's current consideration of=20
the media ownership rules and the very strong=20
level of public interest in this proceeding."
http://www.tvweek.com/news.cms?newsId=3D11284
(requires free registration)
* FCC Media Bureau Posts Staff Reports and Studies
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-269271A1.doc

NEWS CORP, LIBERTY OUTLINE $11 BILLION ASSET SWAP
[SOURCE: Broadcasting&Cable 12/22, AUTHOR: John Eggerton]
News Corp. and Liberty Media have released the=20
details of their planned asset swap. Under terms=20
of the deal, Liberty will give up its $11 billion=20
(16.3%) stake in News Corp. in exchange for that=20
company's ownership stake (38.4%) of satellite TV=20
company DirecTV. That puts cable pioneer and=20
Liberty chief John Malone in the business of=20
trying to grab eyeballs away from the wired=20
world. It also keeps News Corp. Chairman Rupert=20
Murdoch from looking over his shoulder to make=20
sure Malone wasn't trying to take over his=20
company. Liberty also gets three regional sports=20
networks ((FSN Northwest, FSN Pittsburgh and FSN=20
Rocky Mountain)) and $550 million in cash.=20
Shareholders still have to vote to approve the=20
deal, but if they do, and it passes various=20
regulatory reviews, it is expected to close by the second half of 2007.
http://www.broadcastingcable.com/article/CA6402330.html?display=3DBreaki...
News
See also:
* Space Cowboy
After acquiring DirecTV from News Corp., Malone's=20
Liberty Media has new distribution muscle.
http://www.broadcastingcable.com/article/CA6403293.html?display=3DFeature

PREDICTIONS

FORECAST 2007
[SOURCE: MediaWeek, AUTHOR: various]
Here's some looks at what 2007 will be like for=20
various media. Broadcast TV: expect more shows to=20
debut online instead of on air; as the networks=20
increasingly use broadband to create buzz for=20
their new shows, the importance of on-air lead-in=20
and lead-out scheduling will diminish. Cable TV:=20
While last year saw a number of cable networks=20
breaking ratings records with their original=20
programming efforts, cable continues to lag far=20
behind the broadcast nets in terms of its share=20
of prime-time ad dollars; minute-by minute=20
Nielsen ratings may change the way advertisers=20
buy time on cable channels. Interactive Media:=20
Barring a calamity, most expect the Web to=20
experience another period of robust=97if slightly=20
less hyper=97growth in 2007, as total spending will=20
likely exceed $20 billion; the biggest=20
questions=97and the hardest ones to answer=97involve=20
the sea changes that occur annually in this=20
segment where unpredictability rules. Technology:=20
The coming year will be dominated by the release=20
of new operating systems from Microsoft and=20
Apple, but the fun doesn't end there.
* Broadcast TV (John Consoli)
http://www.mediaweek.com/mw/news/recent_display.jsp?vnu_content_id=3D100...
6040
* Cable TV (Anthony Crupi)
http://www.mediaweek.com/mw/news/recent_display.jsp?vnu_content_id=3D100...
6035
* Interactive Media (Mike Shields)
http://www.mediaweek.com/mw/news/recent_display.jsp?vnu_content_id=3D100...
6030
* Putting more on the line online
[SOURCE: Los Angeles Times]
http://www.latimes.com/business/printedition/la-fi-predict2jan02,1,98344...
tory?coll=3Dla-headlines-pe-business
(requires registration)
* Magazines (Lucia Moses )
http://www.mediaweek.com/mw/news/recent_display.jsp?vnu_content_id=3D100...
6043
* Media Agencies/Research
http://www.mediaweek.com/mw/news/recent_display.jsp?vnu_content_id=3D100...
6032
* Technology (Olga Kharif, BusinessWeek)
http://www.businessweek.com/technology/content/dec2006/tc20061228_363228...
m?chan=3Dtechnology_technology+index+page_consumer+electronics
* The Year Ahead in tech (SF Chronicle)
http://sfgate.com/cgi-bin/article.cgi?f=3D/c/a/2007/01/01/BUG46NA91I1.DTL

MEDIA GROUPS ARE GRAPPLING WITH DRIFT OF REVENUE TO THE WEB
[SOURCE: Financial Times, AUTHOR: Aline van Duyn]
How many more readers and advertisers will online=20
rivals lure away and what can print publishers do=20
to keep them? Newspaper circulation has been in=20
decline since the 1970s following the widespread=20
introduction of news coverage on television. But=20
the falls have accelerated in recent years as=20
more people turn to the Internet for instant=20
news, often provided for free. In addition, the=20
shift in classified advertising to the Internet=20
as sites such as Craigslist make this service=20
available, also often free, has gathered pace,=20
hitting newspaper revenues. Advertising shifts=20
appear to have hastened last year, leading many=20
forecasters to cut their 2007 expectations.=20
Merrill Lynch, for example, expects a 2.6 per=20
cent gain in overall US advertising spending this=20
year but anticipates that newspaper advertising=20
revenues will be down 1.5 per cent. Analysts at=20
Lehman Brothers are even more pessimistic:=20
newspaper revenues are forecast to fall 4 per=20
cent this year, due in part to a migration of property advertising to the w=
eb.
http://www.ft.com/cms/s/207365a2-99b1-11db-8b6d-0000779e2340.html
(requires subscription)

AILING MUSIC BIZ SET TO RELAX DIGITAL RESTRICTIONS
[SOURCE: Reuters, AUTHOR: Antony Bruno]
The anti-digital rights management (DRM)=20
bandwagon is getting more crowded by the day.=20
Even some major-label executives are pushing for=20
the right to sell digital downloads as=20
unprotected MP3s. In 2007, the majors will get=20
the message, and the DRM wall will begin to=20
crumble. Why? Because they'll no longer be able=20
to point to a growing digital marketplace as=20
justification that DRM works. Revenue from=20
digital downloads and mobile content is expected=20
to be flat or, in some cases, decline next year.=20
If the digital market does in fact stall,=20
alternatives to DRM will look much more=20
attractive. Revenue from digital music has yet to=20
offset losses from still-declining CD sales, and=20
digital track sales remain a cause for concern.=20
Month-over-month download figures were largely=20
flat through 2006, even in the face of=20
year-over-year gains. If the expected=20
post-holiday spike in download numbers that has=20
occurred in the past two years is weak, look for=20
the glass on the panic button to break.
http://today.reuters.com/news/newsArticle.aspx?type=3DinternetNews&storyID=
=3D2007-01-02T095330Z_01_N02295773_RTRUKOC_0_US-DIGITAL.xml&WTmodLoc=3DInte=
rnetNewsHome_C1_%5bFeed%5d-1

INTERNET/BROADBAND

YOUNG TURN TO WEB SITES WITHOUT RULES
[SOURCE: New York Times, AUTHOR: Brad Stone]
Popular Web sites like YouTube and MySpace have=20
hired the equivalent of school hallway monitors=20
to police what visitors to their sites can see=20
and do by cracking down on piracy and depictions=20
of nudity and violence. So where do the young=20
thrill-seekers go? Increasingly, to new Web sites=20
like Stickam.com, which is building a business by=20
going where others fear to tread: into the realm=20
of unfiltered live broadcasts from Web cameras.=20
The site combines elements of more popular sites,=20
but with a twist. In addition to designing their=20
own pages and uploading video clips, its users=20
broadcast live video of themselves and conduct=20
face-to-face video chats with other users, often=20
from their bedrooms and all without monitoring by=20
any of Stickam=92s 35 employees. Other social=20
networks have decided against allowing=20
conversations over live video because of the=20
potential for abuse and opposition from=20
child-safety advocates. =93The only thing you get=20
from the combination of Web cams and young people=20
are problems,=94 said Parry Aftab, executive=20
director of the child protection organization=20
WiredSafety.org. =93Web cams are a magnet for=20
sexual predators.=94 The larger Internet companies=20
have come under increasing pressure to make their=20
sites safer for children and friendlier to=20
copyright holders, so start-ups like Stickam are=20
pursuing their own slices of the market, often at=20
the price of taste, ethics and perhaps even child safety.
http://www.nytimes.com/2007/01/02/technology/02net.html
(requires registration)

WI-FI IS HITTING THE ROAD IN CARS FROM AVIS, BUT=20
TECHNICAL AND LEGAL BUMPS LIE AHEAD
[SOURCE: New York Times, AUTHOR: Christopher Elliott]
Try connecting to a high-speed wireless network=20
from a car, and you are pretty much limited to=20
one method: rigging your laptop computer with a=20
special modem and subscribing to a costly, and=20
sometimes temperamental, wireless service. But=20
Autonet Mobile, a start-up wireless technology=20
company based in San Francisco, is expected to=20
announce this week that it has reached an=20
agreement with Avis Rent A Car System to provide=20
a rolling Wi-Fi hotspot to Avis customers by=20
March. For $10.95 a day, Avis will issue=20
motorists a notebook-size portable device that=20
plugs into a car=92s power supply and delivers a=20
high-speed Internet connection. For the moment,=20
the service is intended for business travelers.=20
But Autonet sees its service appealing to=20
families traveling with their children, although=20
its unit is expected to cost $399, about twice as=20
much as current cellular card technology, plus=20
$49 a month for service. A mobile Wi-Fi hotspot=20
that lets laptops and personal digital assistants=20
link to the Internet without the benefit of wires=20
represents an important step toward what=20
technology experts call the =93connected car.=94=20
Users of these new Wi-Fi hotspots still must=20
contend with technological limitations, like=20
bandwidth restrictions and, for vehicles with too=20
few auxiliary power outlets for all passengers=20
who want to be online at the same time, battery=20
consumption. Questions about the legality of=20
operating a vehicle with a Wi-Fi hotspot onboard=20
are also likely to be raised, according to analysts.
http://www.nytimes.com/2007/01/02/technology/02avis.html?ref=3Dbusiness
(requires registration)

QUICKLY

MAINSTREAM, NEW MEDIA GETTING A WEEKLY CHECKUP
[SOURCE: USAToday, AUTHOR: Peter Johnson]
Researchers routinely study the coverage of=20
specific media outlets. But no group has ever=20
studied what all forms of media are reporting day=20
to day. That will change this month when the=20
Project for Excellence in Journalism kicks off an=20
ambitious weekly study of what stories almost=20
three dozen media sources are reporting, what=20
news they view as important and how reporting=20
differs among outlets. To be analyzed are nine=20
daily newspapers, as diverse as The New York=20
Times and the Austin American-Statesman; morning=20
and evening newscasts on ABC, NBC and CBS;=20
prime-time talk shows on Fox News, CNN and MSNBC;=20
headlines from CBS and ABC Radio; and various=20
Internet bloggers. Each Tuesday, PEJ will issue a=20
report on its website (journalism.org.) about the=20
media agenda =97 what was covered and what wasn't.=20
It will include an index of the top stories each=20
week and a narrative analyzing the twists and=20
turns of the coverage. The report also will=20
include a breakdown of the differences among the=20
media sectors. The project, which is financed by=20
a grant from the Pew Charitable Trusts, comes as=20
mainstream media outlets are merging and starting=20
up Internet outlets and creating vast sources for=20
news and information. The study is intended to=20
help consumers see how different media play top=20
stories of the day and could help media outlets=20
better gauge the so-called broccoli-vs.-Twinkie=20
debate, "the line between what they think the=20
public needs to know and what they want to know,"=20
PEJ director Tom Rosenstiel says.
http://www.usatoday.com/printedition/life/20070102/d_mediamix02.art.htm

NONRENEWAL OF TV LICENSE STOKES DEBATE IN VENEZUELA
[SOURCE: New York Times 1/1, AUTHOR: Simon Romero]
President Hugo Ch=E1vez=92s decision not to renew the=20
broadcast license of RCTV, one of this country=92s=20
oldest television stations and a frequent critic=20
of his government, has fueled a fierce debate=20
over whether he is stifling dissent in Venezuela=20
as he strengthens his control of the broadcasting=20
industry. Senior officials in Mr. Ch=E1vez=92s=20
government moved quickly to react to growing=20
international and domestic criticism of the=20
decision. Reporters Without Borders, the=20
Paris-based press freedom group, said the move,=20
which Mr. Ch=E1vez announced in a speech before=20
military officers last week, was a =93serious=20
attack on editorial pluralism.=94 The group asked=20
Mr. Ch=E1vez=92s government =93to reconsider its stance=20
and guarantee an independent system of=20
concessions and renewals of licenses.=94 Vice=20
President Jos=E9 Vicente Rangel said the decision=20
was not political retaliation but a =93right of the=20
state for reasons that are justified.=94 Others=20
officials, however, made it clear that the=20
decision was a reaction to RCTV=92s editorial=20
policies, particularly in relation to a coup in=20
April 2002 that briefly removed Mr. Ch=E1vez as president.
http://www.nytimes.com/2007/01/01/world/americas/01venez.html
(requires registration)

FORD PRAISED BY CAMPAIGN LEGAL CENTER FOR PUSHING POLITICS ON THE AIRWAVES
[SOURCE: Broadcasting&Cable 12/27, AUTHOR: John Eggerton]
The Campaign Legal Center, in the wake of=20
former-President Gerald Ford's death, praised him=20
for supporting the effort to require broadcasters=20
to provide quantifiable political airtime as a=20
condition of license renewal. "President Ford=20
understood the need to provide better access for=20
candidates to the nation's airwaves so that the=20
American people can be better-informed about=20
their choices," said Campaign Legal Center policy=20
director Meredith McGehee. "It was that=20
recognition that led President Ford to join with=20
his successor in the White House, President Jimmy=20
Carter, as honorary co-chairs of the Our=20
Democracy Our Airwaves Campaign. Their work to=20
further the goal of a better informed electorate=20
through the use of public airwaves has=20
strengthened our democracy. President Ford and=20
his leadership on this issue so integral to our=20
democracy will be greatly missed."
http://www.broadcastingcable.com/article/CA6402862?title=3DArticle&space...
c=3Dnews

COURT GETS SOME KUDOS FOR CAMPAIGN AD CALL
[SOURCE: Broadcasting&Cable 12/22]
The D.C. Circuit Court=92s decision that=20
corporations and unions may buy TV and radio ads=20
in the run up to primary and general elections=20
that mention candidates drew good reviews from=20
the ad industry and a free-market think tank last month.
http://www.broadcastingcable.com/article/CA6402427.html?display=3DBreaki...
News

UNTANGLE THE WORLD WIDE WEB WITH RSS
[SOURCE: Reuters, AUTHOR: Robert MacMillan]
"RSS" is one of the coolest things you've never=20
heard of when it comes to the Internet. Short for=20
"Really Simple Syndication," a name that seems=20
designed to induce maximum eye glazing, RSS is in=20
fact one of the best time-savers online. And it's=20
getting easier to use. RSS is a way for Web=20
surfers to keep up with the latest news or catch=20
hot deals on travel packages, concert tickets and=20
nearly anything else people use the Internet to=20
buy. Instead of typing in 20 different Web site=20
addresses every time you want to see what's new=20
on washingtonpost.com, craigslist.org or your=20
cousin's blog, just get "RSS feeds." Every time a=20
page updates, you get an alert.
http://today.reuters.com/news/newsArticle.aspx?type=3DtechnologyNews&sto...
D=3D2006-12-29T185423Z_01_N29192014_RTRUKOC_0_US-COLUMN-PLUGGEDIN.xml&WTmod=
Loc=3DTechNewsHome_C1_%5bFeed%5d-2
...and may we suggest=20
http://www.benton.org/index.php?q=3Dtaxonomy/term/6/all/feed
--------------------------------------------------------------
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.
--------------------------------------------------------------

TELECOM
FCC Approves AT&T-BellSouth Deal
* FCC Documents, Commentary
=09

TELECOM

FCC APPROVES AT&T-BELL SOUTH DEAL
[SOURCE: Wall Street Journal, AUTHOR: Amol Sharma=20
amol.sharma( at )wsj.com and Corey Boles]
The Federal Communications Commission approved=20
AT&T Inc.'s $85 billion takeover of BellSouth=20
Corp. Friday, after the telecom giant offered a=20
series of major concessions to consumer groups=20
and regulators. The agency approved the deal, the=20
largest ever in U.S. telecommunications history,=20
by a unanimous 4-0 vote. The merger creates a=20
behemoth that will have a market capitalization=20
of over $220 billion -- more than double that of=20
nearest rival Verizon Communications Inc. -- and=20
will serve over 70 million local phone customers=20
in 22 states, as well as 10 million broadband=20
users. Approval of the deal was never in serious=20
doubt, but it was held up for months because of=20
objections from consumer groups and Democrats.=20
AT&T broke the logjam by proposing a series of=20
conditions this week that won over the Democrats,=20
including a pledge not to prioritize any Internet=20
content provider's traffic over another's, a=20
principle known as "net neutrality." Lawmakers,=20
consumer activists and some Internet companies=20
said that without such regulation, AT&T would be=20
able to strike deals guaranteeing Internet=20
companies like Google Inc. higher quality or=20
faster transmissions than other providers. The=20
net neutrality condition applies to the portion=20
of AT&T's network that connects consumers' homes=20
to the Internet backbone. Special data and voice=20
networks used by corporate customers would not be=20
subject to the rules and AT&T's own nascent video=20
offerings would also be exempted. AT&T also=20
agreed to lower rates for some high-volume voice=20
and data lines that serve corporate customers and=20
are leased on a wholesale basis to smaller=20
telecom carriers. And it pledged to offer=20
stand-alone high-speed Internet access for up to=20
$20 a month. Companies that offer Internet phone=20
service, like Vonage Holdings Corp., would stand=20
to gain if consumers don't have to buy their=20
phone service and Internet service in a packaged bundle.
http://online.wsj.com/article/SB116740994686562601.html?mod=3Ddjemalert
(requires subscription)
* FCC approves AT&T's buyout of BellSouth
http://www.usatoday.com/money/industries/telecom/2006-12-28-att-bellsout...
.htm

FCC Documents

* FCC Approves Merger of AT&T Inc. and BellSouth Corp.
News Release: http://www.fcc.gov/ATT-BellSouth_Press_Release.pdf
* AT&T Files Additional Proposed Merger Commitments
http://www.fcc.gov/ATT_FINALMergerCommitments12-28.pdf

* Chairman Martin and Commissioner Tate: "[W]hile=20
the Democrat Commissioners may have extracted=20
concessions from AT&T, they in no way bind future=20
Commission action. Specifically, a minority of=20
Commissioners cannot alter Commission precedent=20
or bind future Commission decisions, policies,=20
actions, or rules. Thus, to the extent that=20
AT&T has, as a business matter, determined to=20
take certain actions, they are allowed to do=20
so. There are certain conditions, however, that=20
are not self-effectuating or cannot be=20
accomplished by AT&T alone. To the extent=20
Commission action is required to effectuate these=20
conditions as a policy going forward, we=20
specifically do not support those aspects of the=20
conditions and will oppose such policies going forward."
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-269275A2.doc
* Commissioner Copps: "We celebrate today not a=20
triumph for huge corporate mergers but a modest=20
victory for American consumers."
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-269275A3.doc
* Commissioner: Adelstein: "This transaction has=20
given me serious pause, but through hard work and=20
genuine compromise, we were able to achieve a=20
result that delivers major, tangible benefits to=20
consumers. A historic merger warrants historic=20
conditions. I don't pretend that we addressed=20
every possible issue presented here or that it is=20
possible, or even appropriate in this context, to=20
try to rectify years of decisions that have=20
undercut competition. Yet, drawing on the full=20
record, I have tried to counter-balance the=20
effects of this transaction by asking for=20
meaningful conditions that protect the open and=20
neutral character of the Internet, benefit=20
consumers by promoting affordable broadband=20
services, and preserve competitive choices for=20
residential and business consumers."
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-269275A4.doc

More Coverage

Ma Bell is calling again, with a big voice
[SOURCE: Los Angeles Times 12/26, AUTHOR: James S. Granelli]
More than 22 years after the federal government=20
broke up the AT&T phone monopoly, Ma Bell's=20
family is getting back together. With its=20
$84.5-billion plan to buy BellSouth Corp., AT&T=20
Inc. stands poised to reassemble much of the old=20
network that controlled how America communicated.=20
AT&T would end up managing more than a third of=20
the nation's land lines and dominating local=20
service in California and 21 other states. It=20
would hold 23% of the broadband Internet market,=20
leave nearly 95% of the offices in major cities=20
without real choice in service and run the=20
nation's largest cellular carrier, Cingular=20
Wireless. That makes consumer advocates and some=20
industry analysts ask: How big is too big? AT&T's=20
political might already is unrivaled in its=20
sphere. In the last eight years, it has=20
contributed more to federal politicians and spent=20
more on lobbying than the entire cable and=20
satellite TV industries combined =97 and more than=20
any communications, media or technology company,=20
according to the Center for Public Integrity.=20
"They wield a very significant amount of=20
political influence because of their nationwide=20
reach and their large number of employees," said=20
Washington lawyer Philip L. Verveer, who was the=20
Justice Department's first lead trial lawyer in=20
the case that broke up the Ma Bell monopoly. "And=20
because of that, they can play regulatory authorities off each other."
http://www.latimes.com/business/la-fi-att26dec26,1,1147356.story?coll=3D...
headlines-business
(requires registration)

AT&T compromise may get merger approved
[SOURCE: Associated Press, AUTHOR: John Dunbar]
AT&T has offered a new set of concessions that=20
are expected to satisfy the two Democrats on the=20
Federal Communications Commission and lead to=20
approval of the company's $85 billion buyout of=20
BellSouth. AT&T filed a letter of commitment with=20
the agency Thursday night that adds a number of=20
new conditions to the deal, including a promise=20
to observe "network neutrality" principles, an=20
offer of affordable stand-alone digital=20
subscriber line service and a promise to give up=20
some wireless spectrum. AT&T offered the=20
concessions after a little more than a week of=20
marathon negotiations with lawyers who work for=20
the two Democrats on the commission, Michael=20
Copps and Jonathan Adelstein, documents show. The=20
agreement came together 10 days after Republican=20
Commissioner Robert McDowell announced that he=20
would not vote on the deal, despite being=20
authorized to do so by the FCC's general counsel.
http://www.chron.com/disp/story.mpl/ap/business/4432046.html

Commentary

Late Holiday Gift: AT&T Agrees Not to Take Away Our Internet - Temporarily
[SOURCE: Huffington Post, AUTHOR: Jonathan Rintels]
[Commentary] Late Thursday night, with an=20
end-of-year deadline looming to get Federal=20
Communications Commission approval of its=20
takeover of BellSouth, AT&T agreed to significant=20
conditions on the deal that will keep control of=20
the public's Internet in the hands of the public,=20
and out of AT&T's clutches -- at least,=20
temporarily. Given that the US Justice Department=20
abdicated the public interest and turned a blind=20
eye to the glaring anti-competitive impacts of=20
combining AT&T and BellSouth, two of the nation's=20
largest phone companies, there was little chance=20
this merger could be stopped entirely. So AT&T's=20
cave in on Network Neutrality, its reluctant=20
agreement to provide system-wide low cost=20
stand-alone broadband access, its surrender of=20
valuable spectrum to competitors, and other=20
competition-preserving conditions - all in all,=20
this is likely the best outcome the public could=20
hope for. Yet, the Net Neutrality and other=20
conditions in this merger are not permanent, but=20
expire after, in most instances, 30 months. Thus,=20
the battle now shifts to Congress to make these=20
conditions permanent, and preserve control of the=20
Internet in the hands of the public, not the big=20
telephone and cable monopolists.
http://www.huffingtonpost.com/jonathan-rintels/late-holiday-gift-att-_b_...
61.html

AT&T Net Neutrality Condition: Win, Lose or Draw?
[SOURCE: Tales from the Sausage Factory, AUTHOR: Harold Feld]
[Commentary] Unsurprisingly, in an area as=20
complex as this, opinion has split on what the=20
merger conditions mean. Some, like Tim Karr and=20
Columbia Law Professor Tim Wu, and Matt Stoller=20
hail the conditions as an important victory.=20
Others, such as Cardozo Law Professor and ICANN=20
Director Susan Crawford, Jeff Pulver, and Dave=20
Burstein think AT&T has cleverly played us for=20
dupes by giving us conditions with loopholes that=20
render the conditions meaningless. While others,=20
like Dave Isenberg, strike a middle ground.=20
Others, pointing out that the conditions only=20
last two years. Comments that we got =93duped=94 or=20
=93sold out=94 or didn't accomplish squat irritates=20
me somewhat. The people who broke their backs=20
moving this are under no delusions about how much=20
remains to be done. Would it really encourage a=20
team that has just ground out a first down from=20
fourth and ten to get boos from the crowd because=20
they haven't won the game yet? While reasonable=20
minds can differ on whether to put this=20
ultimately in the win column, the lose column, or=20
the draw column, I hope folks will give those who=20
fought hard for what we got a due measure of=20
respect and some indulgence of their celebrating=20
the positives we did achieve. So yes, we need to=20
study the possible flaws in this definition of=20
network neutrality. We need to come storming out=20
of the gate the first week of '07 to make sure=20
every Senator and Representative knows this deal=20
is not enough and we will not rest until real=20
network neutrality protections become permanent=20
law. And we need to redouble our efforts in state=20
legislatures, where the telcos hope to advance=20
their franchise =93reform=94 agenda. But can we do it=20
in a way that doesn't piss all over our=20
accomplishments? Especially when, frankly, I=20
think we have good cause to celebrate how '06 came out.
http://www.wetmachine.com/totsf/item/682

AT&T Commits to Net Neutrality and Low-Cost Internet
[SOURCE: Free Press, Consumers Union, Consumer Federation of America]
Ben Scott, Policy Director, Free Press: "This=20
mega-merger can't be stopped, but Commissioners=20
Copps and Adelstein stood firm in the face of=20
intense pressure to ensure a fair deal for the=20
public that would protect the neutral and open=20
Internet. Making Net Neutrality a condition of=20
the largest merger in telecommunications history=20
would set an important precedent. It will be up=20
to the new Congress to craft a forward-looking=20
broadband policy that will bring the benefits of=20
the Internet to all Americans. For free speech,=20
democratic participation and economic innovation=20
to thrive online, Net Neutrality must be the law."
http://www.freepress.net/press/release.php?id=3D195
--------------------------------------------------------------
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.
--------------------------------------------------------------