Benton RSS Feed

Coverage Type 

MEDIA-SOURCING DEBATE ON DECK AT CAPITOL
[SOURCE: Wall Street Journal, AUTHOR: Jess Bravin jess.bravin@wsj.com and Sarah Ellison]
The Bush administration is increasingly at odds with some Republicans over its efforts to make journalists reveal confidential sources. The controversy is reaching a flashpoint in San Francisco, where the Justice Department is expected to file papers today urging that two San Francisco Chronicle reporters face jail if they refuse to reveal their source for confidential grand-jury proceedings concerning baseball slugger Barry Bonds's alleged use of steroids. The issue also is expected to re-emerge on Capitol Hill next year, where two influential Republicans, Sen. Richard Lugar and Rep. Mike Pence, both of Indiana, plan to reintroduce legislation limiting the government's power to force journalists to disclose confidential sources. Many Democrats, whose party will control Congress next year, also support extending protection to reporters' sources and are expected to co-sponsor the legislation. Currently, all states except Wyoming have passed laws or issued court rulings that provide some level of protection for reporters' confidential sources or notes from subpoenas, says Marv Johnson, a legislative counsel with the American Civil Liberties Union in Washington. The rationale for the so-called shield laws is that society benefits from aggressive news reporting, a value embodied in the First Amendment. Giving prosecutors or other litigants access to reporters' sources could transform journalists into investigators for the government or private parties, media advocates say, potentially exposing sources to retaliation and thereby impeding public access to news of possible wrongdoing or questionable activities.
http://online.wsj.com/article/SB116674758240357303.html?mod=todays_us_ma...
(requires subscription)


http://online.wsj.com/article/SB116674758240357303.html?mod=todays_us_marketplac…
Coverage Type 

AT&T MUST FACE LAWSUIT BY MEDIAONE EXECUTIVES
[SOURCE: Bloomberg News]
AT&T, the largest U.S. telephone company, must face a lawsuit by former MediaOne Group Inc. executives who say a buyout reduced the value of their stock options, a judge ruled. The executives, including ex-MediaOne Chief Executive Charles Lillis, can go to trial to press claims that they lost millions in the fallout from AT&T's 2000 takeover of the cable company, Delaware Chancery Court Judge Stephen Lamb ruled.
http://www.latimes.com/business/printedition/la-fi-briefs22.1dec22,1,462...
(requires registration)


AT&T must face lawsuit by MediaOne executives
Coverage Type 

FCC SCHEDULES COMMENTS IN CLEAR CHANNEL DEAL
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
The FCC has scheduled the comment period for the application by radio and TV group owner Clear Channel to take the company private, which won't be completed until February at the earliest. The FCC says it will accept comments or petitions to deny the deal through Jan. 19, with responses to those comments Feb. 1, then replies from the other side Feb. 13.
http://www.broadcastingcable.com/article/CA6402114.html?title=Article&sp...


http://www.broadcastingcable.com/article/CA6402114.html?title=Article&spacedesc=…
Coverage Type 

MILWAUKEE SUES AT&T OVER U-VERSE
[SOURCE: Multichannel News]
The city of Milwaukee filed a federal lawsuit against AT&T Wednesday seeking to force the telco to negotiate a cable-franchise agreement for its U-verse TV Internet-protocol-TV service. The city wants AT&T to make the same annual payment incumbent cable operator Time Warner Cable makes under terms of its franchise.
http://www.multichannel.com/article/CA6401959.html?display=Breaking+News


http://www.multichannel.com/article/CA6401959.html?display=Breaking%20News
Coverage Type 

BLOGGERS MUST DISCLOSE SPONSORED POSTS
[SOURCE: Associated Press, AUTHOR: Anick Jesdanun]
A company that helps advertisers connect with bloggers willing to write about their products for payment will now require disclosures amid criticism and a regulatory threat. Before this week, advertisers were barred by PayPerPost Inc. from telling bloggers they can't disclose the sponsorship, but bloggers were able to decide on their own whether or not to do so. Under the new policy, bloggers must disclose that they are accepting payment, either in the write-up or in a general disclosure policy on the blogger's Web journal.
http://hosted.ap.org/dynamic/stories/T/TECHBIT_BLOG_DISCLOSURES?SITE=VTB...


http://hosted.ap.org/dynamic/stories/T/TECHBIT_BLOG_DISCLOSURES?SITE=VTBRA&SECTI…
Coverage Type 

EARTHLINK ROLLS OUT MORE CITYWIDE WI-FI
[SOURCE: C-Net|News.com, AUTHOR: Marguerite Reardon]
EarthLink turned on two more of its Wi-Fi cities this week. On Tuesday, the Internet service provider announced that Milpitas, Calif., had begun offering service over its new citywide Wi-Fi network built by EarthLink. And on Thursday, New Orleans turned on its citywide Wi-Fi network. EarthLink, which has had to rely on cable and DSL (digital subscriber line) networks to deliver broadband service to consumers, is using Wi-Fi, an unlicensed radio frequency technology, as an affordable way to build its own broadband infrastructure. Over the past year, the company has won bids to blanket eight cities with Wi-Fi, including high-profile projects in Philadelphia and San Francisco. In June it launched its first network in Anaheim, Calif. In New Orleans, the 20-square-mile Wi-Fi mesh network covers parts of Orleans Parish, which was devastated by last year's Hurricane Katrina. In an effort to help rebuild New Orleans, EarthLink is providing a free tier of service--available up to 300 kilobits per second--for residents and businesses throughout the coverage area. Consumers can access the free tier by logging on to the Web site https://featherwifi.netthrough the Wi-Fi access software embedded in their computer.
http://news.com.com/EarthLink+rolls+out+more+citywide+Wi-Fi/2100-7351_3-...


EarthLink rolls out citywide Wi-Fi in New Orleans
Coverage Type 

TOP TEN ED-TECH STORIES OF 2006
[SOURCE: eSchool News]
Those top ten lists are popping up everywhere already. Across the nation in 2006, educators sought out new policies to deal with the problems posed by social-networking web sites and other emerging online tools. In Washington, voters ushered in a new Democratic Congress with plans to overhaul President Bush's landmark No Child Left Behind Act; and in classrooms from coast to coast, educators continued their search for new educational technology solutions destined to prepare today's students for the challenges of a new century. In this two-part retrospective, the editors of eSchool News count down what they believe to be the top educational technology issues from 2006 -- many of which no doubt will continue to make headlines in the coming year. Topics include: cell phones, video games, social networking websites, online learning, disaster planning, and the changes the year's elections will bring.
http://www.eschoolnews.com/news/showstoryts.cfm?Articleid=6743
http://www.eschoolnews.com/news/showStoryts.cfm?ArticleID=6745


http://www.eschoolnews.com/news/showstoryts.cfm?Articleid=6743
Coverage Type 

CALL FOR NOMINATIONS -- THE DAVID J BRUGGER GRASSROOTS ADVOCACY AWARD
[SOURCE: Association of Public Television Stations ]
The David J. Brugger Grassroots Advocacy Award seeks to enshrine the invaluable contribution that citizen activists can and do make to preserve and grow the institution of Public Broadcasting. The award honors lay persons (non-Public Broadcasting professionals), that advocate for Public Broadcasting before Congress, and organize other citizens to join in that advocacy effort. No other national award specifically honors the vital link in which citizens engage other citizens on behalf of advocacy. Nominations for the 2007 David J. Brugger Grassroots Advocacy Award are being accepted now. For a nomination form and additional information about award eligibility, visit the URL below.
http://www.apts.org/events/capitolhillday/Award_Information.cfm


The David Brugger Grassroots Advocacy Award

Benton's Communications-related Headlines For Friday December 22, 2006

The Headlines staff has taken a job as back-up elf at Macy's for the
remainder of the year and, therefore, will be unable to provide you,
our dedicated readers, with our Headline service from December 23 to
January 1. We'll be back on January 2. We wish everyone
communications-filled holidays!

MEDIA & ELECTIONS
D.C. Circuit Weakens Campaign Ad Regs

JOURNALISM
Media-Sourcing Debate on Deck at Capitol

OWNERSHIP
AT&T, Bell South Downplay Delisting Notice
AT&T must face lawsuit by MediaOne executives
FCC Schedules Comments in Clear Channel Deal

QUICKLY -- Milwaukee Sues AT&T Over U-verse; Bloggers Must Disclose
Sponsored Posts; EarthLink rolls out citywide Wi-Fi in New Orleans;
Top 10 ed-tech stories of 2006; The David Brugger Grassroots Advocacy Award

REACTION TO FCC'S VIDEO FRANCHISING DECISION
Consumers Union, Alliance for Community Media, National League of
Cities, NATOA,
NCTA, ACA, TIA, NAB

MEDIA & ELECTIONS

DC CIRCUIT WEAKENS CAMPAIGN AD REGS
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
In a decision that could free up even more campaign money for
broadcasters [Yeah! Another reason to believe in Christmas!], a
three-judge panel of the D.C. Court of Appeals has ruled that
regulations prohibiting electioneering communications in the run-up
to general federal elections and primaries do not necessarily apply
to ads that mention candidates. That could pave the way for more
campaign TV and radio advertising from unions and corporations [yes,
those underrepresented organizations that our campaign laws need to
protect]. The Supreme Court had upheld the Bipartisan Campaign Reform
Act (BCRA) of 2002's authority to regulate electioneering
communications, so-called advocacy ads that expressly advocate the
election of a particular candidate. But it had left open the question
of whether those regulations applied to ads that, even though they
mentioned a candidate, were found to be promoting an issue rather
than a candidate.
http://www.broadcastingcable.com/article/CA6402213.html?display=Breaking...
* Court Overturns Limits on Political Ads, Part of the Campaign Finance Law
http://www.nytimes.com/2006/12/22/washington/22campaign.html
* Issue Advocacy Ads May Run During an Election, Three-Judge Court Rules
http://www.washingtonpost.com/wp-dyn/content/article/2006/12/21/AR200612...
* Judges lift restriction on ads near elections
http://www.usatoday.com/printedition/news/20061222/a_capcol22.art.htm
* Ruling weakens law's limits on corporate political ads
http://www.latimes.com/news/printedition/asection/la-na-ads22dec22,1,692...
* Ruling May Allow Room for Campaign TV and Radio Ad From
Corporations and Unions
http://www.broadcastingcable.com/article/CA6402220.html?display=Breaking...

JOURNALISM

MEDIA-SOURCING DEBATE ON DECK AT CAPITOL
[SOURCE: Wall Street Journal, AUTHOR: Jess Bravin jess.bravin( at )wsj.com
and Sarah Ellison]
The Bush administration is increasingly at odds with some Republicans
over its efforts to make journalists reveal confidential sources. The
controversy is reaching a flashpoint in San Francisco, where the
Justice Department is expected to file papers today urging that two
San Francisco Chronicle reporters face jail if they refuse to reveal
their source for confidential grand-jury proceedings concerning
baseball slugger Barry Bonds's alleged use of steroids. The issue
also is expected to re-emerge on Capitol Hill next year, where two
influential Republicans, Sen. Richard Lugar and Rep. Mike Pence, both
of Indiana, plan to reintroduce legislation limiting the government's
power to force journalists to disclose confidential sources. Many
Democrats, whose party will control Congress next year, also support
extending protection to reporters' sources and are expected to
co-sponsor the legislation. Currently, all states except Wyoming have
passed laws or issued court rulings that provide some level of
protection for reporters' confidential sources or notes from
subpoenas, says Marv Johnson, a legislative counsel with the American
Civil Liberties Union in Washington. The rationale for the so-called
shield laws is that society benefits from aggressive news reporting,
a value embodied in the First Amendment. Giving prosecutors or other
litigants access to reporters' sources could transform journalists
into investigators for the government or private parties, media
advocates say, potentially exposing sources to retaliation and
thereby impeding public access to news of possible wrongdoing or
questionable activities.
http://online.wsj.com/article/SB116674758240357303.html?mod=todays_us_ma...
(requires subscription)

OWNERSHIP

AT&T, BELLSOUTH DOWNPLAY DELISTING NOTICE
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
According to a source at a New York Stock Exchange member company,
the exchange released a delisting notice to member companies Thursday
morning indicating that the merger of AT&T and Bell South could close
Friday. Spokesmen for both companies were downplaying the notice,
saying that they did not ask for it and that "nothing's happening." A
second notice was sent soon after, amending the first to say the
merger would close Dec. 22 "at the earliest," rather than it "would
close," and adding the caveat: "subject to FCC approval." The
Exchange usually sends out such notices after being contacted by
company executives, according to the source. In the stock-for-stock
deal, Bell South's ticker symbol will have to be delisted once it is
approved, but both companies said they didn't ask the notice be sent.
http://www.broadcastingcable.com/article/CA6402059.html?display=Breaking...

AT&T MUST FACE LAWSUIT BY MEDIAONE EXECUTIVES
[SOURCE: Bloomberg News]
AT&T, the largest U.S. telephone company, must face a lawsuit by
former MediaOne Group Inc. executives who say a buyout reduced the
value of their stock options, a judge ruled. The executives,
including ex-MediaOne Chief Executive Charles Lillis, can go to trial
to press claims that they lost millions in the fallout from AT&T's
2000 takeover of the cable company, Delaware Chancery Court Judge
Stephen Lamb ruled.
http://www.latimes.com/business/printedition/la-fi-briefs22.1dec22,1,462...
(requires registration)

FCC SCHEDULES COMMENTS IN CLEAR CHANNEL DEAL
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
The FCC has scheduled the comment period for the application by radio
and TV group owner Clear Channel to take the company private, which
won't be completed until February at the earliest. The FCC says it
will accept comments or petitions to deny the deal through Jan. 19,
with responses to those comments Feb. 1, then replies from the other
side Feb. 13.
http://www.broadcastingcable.com/article/CA6402114.html?title=Article&sp...

QUICKLY

MILWAUKEE SUES AT&T OVER U-VERSE
[SOURCE: Multichannel News]
The city of Milwaukee filed a federal lawsuit against AT&T Wednesday
seeking to force the telco to negotiate a cable-franchise agreement
for its U-verse TV Internet-protocol-TV service. The city wants AT&T
to make the same annual payment incumbent cable operator Time Warner
Cable makes under terms of its franchise.
http://www.multichannel.com/article/CA6401959.html?display=Breaking+News

BLOGGERS MUST DISCLOSE SPONSORED POSTS
[SOURCE: Associated Press, AUTHOR: Anick Jesdanun]
A company that helps advertisers connect with bloggers willing to
write about their products for payment will now require disclosures
amid criticism and a regulatory threat. Before this week, advertisers
were barred by PayPerPost Inc. from telling bloggers they can't
disclose the sponsorship, but bloggers were able to decide on their
own whether or not to do so. Under the new policy, bloggers must
disclose that they are accepting payment, either in the write-up or
in a general disclosure policy on the blogger's Web journal.
http://hosted.ap.org/dynamic/stories/T/TECHBIT_BLOG_DISCLOSURES?SITE=VTB...

EARTHLINK ROLLS OUT MORE CITYWIDE WI-FI
[SOURCE: C-Net|News.com, AUTHOR: Marguerite Reardon]
EarthLink turned on two more of its Wi-Fi cities this week. On
Tuesday, the Internet service provider announced that Milpitas,
Calif., had begun offering service over its new citywide Wi-Fi
network built by EarthLink. And on Thursday, New Orleans turned on
its citywide Wi-Fi network. EarthLink, which has had to rely on cable
and DSL (digital subscriber line) networks to deliver broadband
service to consumers, is using Wi-Fi, an unlicensed radio frequency
technology, as an affordable way to build its own broadband
infrastructure. Over the past year, the company has won bids to
blanket eight cities with Wi-Fi, including high-profile projects in
Philadelphia and San Francisco. In June it launched its first network
in Anaheim, Calif. In New Orleans, the 20-square-mile Wi-Fi mesh
network covers parts of Orleans Parish, which was devastated by last
year's Hurricane Katrina. In an effort to help rebuild New Orleans,
EarthLink is providing a free tier of service--available up to 300
kilobits per second--for residents and businesses throughout the
coverage area. Consumers can access the free tier by logging on to
the Web site https://featherwifi.netthrough the Wi-Fi access software
embedded in their computer.
http://news.com.com/EarthLink+rolls+out+more+citywide+Wi-Fi/2100-7351_3-...

TOP TEN ED-TECH STORIES OF 2006
[SOURCE: eSchool News]
Those top ten lists are popping up everywhere already. Across the
nation in 2006, educators sought out new policies to deal with the
problems posed by social-networking web sites and other emerging
online tools. In Washington, voters ushered in a new Democratic
Congress with plans to overhaul President Bush's landmark No Child
Left Behind Act; and in classrooms from coast to coast, educators
continued their search for new educational technology solutions
destined to prepare today's students for the challenges of a new
century. In this two-part retrospective, the editors of eSchool News
count down what they believe to be the top educational technology
issues from 2006 -- many of which no doubt will continue to make
headlines in the coming year. Topics include: cell phones, video
games, social networking websites, online learning, disaster
planning, and the changes the year's elections will bring.
http://www.eschoolnews.com/news/showstoryts.cfm?Articleid=6743
http://www.eschoolnews.com/news/showStoryts.cfm?ArticleID=6745

CALL FOR NOMINATIONS -- THE DAVID J BRUGGER GRASSROOTS ADVOCACY AWARD
[SOURCE: Association of Public Television Stations ]
The David J. Brugger Grassroots Advocacy Award seeks to enshrine the
invaluable contribution that citizen activists can and do make to
preserve and grow the institution of Public Broadcasting. The award
honors lay persons (non-Public Broadcasting professionals), that
advocate for Public Broadcasting before Congress, and organize other
citizens to join in that advocacy effort. No other national award
specifically honors the vital link in which citizens engage other
citizens on behalf of advocacy. Nominations for the 2007 David J.
Brugger Grassroots Advocacy Award are being accepted now. For a
nomination form and additional information about award eligibility,
visit the URL below.
http://www.apts.org/events/capitolhillday/Award_Information.cfm

REACTION TO FCC'S VIDEO FRANCHISING DECISION
(see recap of all the coverage of this story at
http://www.benton.org/index.php?q=node/4331)

* Consumer Group Says FCC Move on Video Competition Risky Without
Assurances that Cable Rates Will Fall, Decision Does More Harm Than Good
Consumers Union called the Federal Communications Commission's
decision today to let phone companies begin offering video services
without adhering to basic consumer protection requirements a risky
move based on only flimsy evidence that consumers will actually
benefit from the move. "Consumers are ill-served by the Commission's
decision to let phone companies pick and choose which neighborhoods
will get more choice for cable service and which will be left with
only their monopoly cable provider, facing both rate hikes and no
hope of any alternative," said Jeannine Kenney, senior policy analyst
with Consumers Union. "Unless consumers receive assurances from both
the FCC and the Bells that cable rates will actually decline for all
customers in a market after phone companies begin offering service,
FCC's decision may do more harm than good."
http://www.hearusnow.org/other/newsroom/tvradiocable/consumersunionsaysf...

* FCC Attacks PEG Funding, Community Media, Congressional Authority
[SOURCE: Alliance for Community Media]
Executive Director Anthony Riddle: "The telephone industry could not
get a law passed through the 535 legislators answerable to the
public. So they anointed a "Super Legislature" where they only
needed three unelected regulators to pass a law. Congress should act
quickly to limit the power of activist regulators. The FCC should
react to Congress. Congress should not have to react to the FCC.
This order will end up losing in court. It is an unconscionable
waste of the millions of tax-payers' dollars which will be wasted on
legal fees. The majority of the FCC are mistaking chaos and thuggery
for a coherent national communications policy. It will not result in
competition, but even more media consolidation. The FCC, in the
spirit of Christmas, has given the biggest gift of all to the giant
telephone companies while the children of our cities and towns get a
lump of coal in their torn stockings."
http://www.alliancecm.org/blog.php

* FCC Decision on Video Franchising is Detrimental for Local Government
[SOURCE: National League of Cities]
Don Borut, Executive Director, National League of Cities: "We are
confounded by today's decision by the Federal Communications
Commission (FCC) that would systematically block the ability of local
governments to protect their citizens, local assets and revenues. It
is not in the best interest of America's taxpaying public; it is not
in the best interest of our citizens who own the public rights of
way; it is not in the best interest of the widest number of
consumers, who, depending on where they live or how much they are
willing to spend, may be shut out from the most up-to-date technology
by companies seeking to service only the most well-to-do
neighborhoods. The cities and towns represented by NLC have urged
fairness in the effort to reform telecommunications policy. That did
not happen today."
http://www.nlc.org/Newsroom/Press_Room/13105.cfm

* NATOA Responds to FCC Vote on Jurisdiction and Franchising Authority
[SOURCE: National Association of Telecommunications Officers and Advisors]
NATOA's Executive Director, Libby Beaty, responded to the news of the
vote: "Today the FCC played Scrooge to local governments when they
changed the agency from a regulatory to a legislative
body. Unfortunately, unlike Scrooge, it's highly unlikely the FCC
will see the error of its way absent court or Congressional
intervention. We will look forward to providing them both
opportunities." We will respond to the entirety of the Commission's
order when it is released and available for thorough review.
http://www.natoa.org/

* NCTA Statement
Kyle McSlarrow, President & CEO, National Cable & Telecommunications
Association: "The FCC's pricing survey fails to account for the
benefits of bundled pricing, its favorable impact on cable prices,
and the greatly increased value of cable services in a digital
world. Ignoring these factors makes the pricing survey obsolete on
arrival and an unsound basis for policy decisions. On today's
decision on video franchising, it appears that the FCC pared back
some of the more troubling proposals that had been floated in recent
days. The Commission made crystal clear that its order isn't a
license for AT&T to ignore the franchising process and operate under
different rules from its competitors. In addition, the Commission
stepped back from pre-empting all state franchising laws, many of
which have acknowledged the value to consumers of a level playing
field for all competitors. We appreciate the FCC's commitment to
complete action within six months on a further notice to address
regulatory parity. But the simple fact is that today's order doesn't
provide a level playing field, a concept that has been universally
supported up until now at federal, state, and local levels. We don't
believe the Commission has the legal authority to establish separate
regimes for incumbents and new entrants in today's highly competitive
marketplace."
http://www.ncta.com/ContentView.aspx?hidenavlink=true&type=reltyp2&conte...

* ACA's Polka: Martin Misguided
[SOURCE: Multichannel News]
American Cable Association CEO Matthew M. Polka had plenty to say
about the Federal Communications Commission's decision on cable rates
and local franchising. On cable rates, Polka said, "The answer is
very simple. Who controls the rates of the content on cable,
satellite and telco video today? Not the operators, but the
media-conglomerate programmers, whose rates and increases far exceed
the data reported by the FCC on cable rates. Why are satellite's
rates the same or higher than cable's? Why did [Verizon
Communications' FiOS TV] just announce a 7.6% increase for January?"
On video franchising, Polka said, "These new rules upset the balance
of competition, take authority away from local governments and give
the Bell companies a free pass on serving all subscribers in a
market. Through these rules, the FCC is ratifying the red-lining
practice of building out service in only the wealthiest areas."
http://www.multichannel.com/article/CA6402183.html?display=Breaking+News

* TIA Commends FCC's Decision to Facilitate Entry into the Video
Services Market
The Telecommunications Industry Association has long urged the FCC to
impose uniform requirements on local franchise authorities (LFAs) to
minimize the adverse effects of the existing local franchise process.
TIA believes the commission's decision today is consistent with its
momentum toward a deregulatory framework necessary to increase
broadband deployment to all Americans.
http://www.tiaonline.org/business/media/press_releases/2006/PR-122.cfm

* NAB Statement
National Association of Broadcasters Executive Vice President of
Media Relations Dennis Wharton: "NAB salutes the FCC for taking
decisive action to increase much needed competition to cable
monopolies. With today's action, the Commission has delivered a
holiday treat for cable customers who will now have a choice and the
ability to avoid rate hikes that run two to four times the annual
rate of inflation."
http://www.nab.org/AM/Template.cfm?Section=News_Room&CONTENTID=7542&TEMP...
--------------------------------------------------------------
...and we are outta here. Thanks for subscribing. Happy Holidays and
see you in the New Year!
--------------------------------------------------------------
Communications-related Headlines is a free online news summary
service provided by the Benton Foundation (www.benton.org). Posted
Monday through Friday, this service provides updates on important
industry developments, policy issues, and other related news events.
While the summaries are factually accurate, their often informal tone
does not always represent the tone of the original articles.
Headlines are compiled by Kevin Taglang headlines( at )benton.org -- we
welcome your comments.
--------------------------------------------------------------

Coverage Type 

FCC ADOPTS RULES TO ENSURE REASONABLE FRANCHISING PROCESS FOR NEW VIDEO MARKET ENTRANTS
[SOURCE: Federal Communications Commission]
The Federal Communications Commission adopted a Report and Order and Further Notice of Proposed Rulemaking that establishes rules and provides guidance to implement Section 621(a)(1) of the Communications Act of 1934, which prohibits franchising authorities from unreasonably refusing to award competitive franchises for the provision of cable services. In the Order, the Commission concludes that the current operation of the franchising process constitutes an unreasonable barrier to entry that impedes the achievement of the interrelated federal goals of enhanced cable competition and accelerated broadband deployment. The Order addresses several ways by which local franchising authorities are unreasonably refusing to award competitive franchises. These include drawn-out local negotiations with no time limits; unreasonable build-out requirements; unreasonable requests for "in-kind" payments that attempt to subvert the five percent cap on franchise fees; and unreasonable demands with respect to public, educational and government access (or "PEG"). To eliminate the unreasonable barriers to entry into the cable market, and to encourage investment in broadband facilities, the Commission: 1) Found that franchising negotiations that extend beyond certain time frames amount to an unreasonable refusal to award a competitive franchise within the meaning of Section 621(a)(1); 2) Found that requiring an applicant to agree to unreasonable build-out requirements constitutes an unreasonable refusal to award a competitive franchise; 3) Found that, unless certain specified costs, fees, and other compensation required by local franchising authorities are counted toward the statutory five percent cap on franchise fees, demanding them could result in an unreasonable refusal to award a competitive franchise; 4) Found that it would be an unreasonable refusal to award a competitive franchise if the local franchising authority denied an application based on a new entrant's refusal to undertake certain unreasonable obligations relating to public, educational, and governmental ("PEG") and institutional networks ("I-Nets"); and 5) Preempted local laws, regulations, and requirements, including local level-playing-field provisions, to the extent they impose greater restrictions on market entry than the rules adopted herein.
The Commission concluded that although the record allows it to determine generally what constitutes an "unreasonable refusal to award an additional competitive franchise" at the local level, the Commission does not have sufficient information to make such determinations with respect to franchising decisions made at the state level or in compliance with state statutory directives, such as statewide franchising decisions. As a result, the Order addresses only decisions made by county- or municipal-level franchising authorities. The Commission also adopted a Further Notice of Proposed Rulemaking in which it seeks comment on how its findings in the Order should affect existing franchisees, tentatively concludes that the findings should apply to existing franchisees at the time of their next franchise renewal process, and seeks comment on the Commission's statutory authority to take this action. The Commission will conclude this rulemaking and release an order no later than six months after the release of the Order.
News Release: http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-269111A1.doc
Martin Statement: http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-269111A2.doc
Copps Statement: http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-269111A3.doc
Adelstein Statement: http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-269111A4.doc
Tate Statement: http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-269111A5.doc
McDowell Statement: http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-269111A6.doc

_Coverage_

BELL COMPANIES' FCC VICTORY MIGHT BE SHORT-LIVED
[SOURCE: Wall Street Journal, AUTHOR: Amy Schatz Amy.Schatz@wsj.com]
Phone companies scored a win at the Federal Communications Commission when the agency agreed to change rules to let them enter the cable-television business faster, but the victory may be short-lived, as congressional Democrats complained and opponents threatened legal action. The FCC, in a 3-2 party-line vote, passed rules that give state and local authorities a 90-day deadline to grant video-franchising agreements to new competitors. The commission also struck down rules requiring that the Bells do more to provide service to all residents in an area than current providers. The FCC action raises potentially significant issues for the Bells, which have persuaded eight states -- including California, New Jersey and Texas -- to change laws to accelerate entry to the video business. State and local officials say the FCC is trying to usurp their authority, and cable companies say the Bells are getting preferential treatment. The matter looks to be heading for court. Yesterday's decision may make it more difficult for the Bells to persuade other states to change some rules that are made somewhat moot by the FCC action.
http://online.wsj.com/article/SB116664369395955925.html?mod=todays_us_pa...
(requires subscription)

* Phone Carriers Win a Skirmish in Cable Wars
http://www.nytimes.com/2006/12/21/business/21cable.html?ref=todayspaper
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* FCC Vote A Victory For Phone Companies
http://www.washingtonpost.com/wp-dyn/content/article/2006/12/20/AR200612...

* Telecoms groups gain TV boost
http://www.ft.com/cms/s/e936c23c-9082-11db-a4b9-0000779e2340.html
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* Phone giants are closer to TV service
http://www.usatoday.com/printedition/money/20061221/1b_franchise21.art.htm

* FCC backs telephone companies in TV fight
http://www.latimes.com/business/printedition/la-fi-fcc21dec21,1,5635193....

* FCC Gives Telcos Big Video Victory
http://www.broadcastingcable.com/article/CA6401769.html?display=Breaking...

* FCC: 90-Day Franchise Shot Clock
http://www.multichannel.com/article/CA6401838.html?display=Breaking+News

* FCC Votes to Ease Hurdles to Cable Competition
http://www.tvweek.com/news.cms?newsId=11265

* NCTA Could Sue FCC Over Franchise Item
http://www.broadcastingcable.com/article/CA6401834.html?display=Breaking...

* Dingell questions FCC authority on cable
http://news.yahoo.com/s/ap/20061220/ap_en_tv/cable_competition

* Markey Says He Will Review FCC Decision
http://www.broadcastingcable.com/article/CA6401858.html?display=Breaking...

* FCC adopts relief for telecom companies planning TV offerings
http://news.com.com/FCC+adopts+relief+for+telecom+companies+planning+TV+...

* Divided FCC OKs 'Shot Clock' Plan For Awarding Video Franchises
http://www.njtelecomupdate.com/lenya/telco/live/tb-TGRO1166704700067.html

* Why the New FCC Rules May Bring Lawsuits
http://www.businessweek.com/bwdaily/dnflash/content/dec2006/db20061221_1...

* Phone firms gain cable TV victory
http://www.ajc.com/services/content/business/stories/2006/12/20/1221bizf...

_Reaction_

* Consumer Group Says FCC Move on Video Competition Risky Without Assurances that Cable Rates Will Fall, Decision Does More Harm Than Good
Consumers Union called the Federal Communications Commission's decision today to let phone companies begin offering video services without adhering to basic consumer protection requirements a risky move based on only flimsy evidence that consumers will actually benefit from the move. "Consumers are ill-served by the Commission's decision to let phone companies pick and choose which neighborhoods will get more choice for cable service and which will be left with only their monopoly cable provider, facing both rate hikes and no hope of any alternative," said Jeannine Kenney, senior policy analyst with Consumers Union. "Unless consumers receive assurances from both the FCC and the Bells that cable rates will actually decline for all customers in a market after phone companies begin offering service, FCC's decision may do more harm than good."
http://www.hearusnow.org/other/newsroom/tvradiocable/consumersunionsaysf...

* FCC Attacks PEG Funding, Community Media, Congressional Authority
[SOURCE: Alliance for Community Media]
Executive Director Anthony Riddle: "The telephone industry could not get a law passed through the 535 legislators answerable to the public. So they anointed a "Super Legislature" where they only needed three unelected regulators to pass a law. Congress should act quickly to limit the power of activist regulators. The FCC should react to Congress. Congress should not have to react to the FCC. This order will end up losing in court. It is an unconscionable waste of the millions of tax-payers' dollars which will be wasted on legal fees. The majority of the FCC are mistaking chaos and thuggery for a coherent national communications policy. It will not result in competition, but even more media consolidation. The FCC, in the spirit of Christmas, has given the biggest gift of all to the giant telephone companies while the children of our cities and towns get a lump of coal in their torn stockings."
http://www.alliancecm.org/blog.php

* FCC Decision on Video Franchising is Detrimental for Local Government
[SOURCE: National League of Cities]
Don Borut, Executive Director, National League of Cities: “We are confounded by today’s decision by the Federal Communications Commission (FCC) that would systematically block the ability of local governments to protect their citizens, local assets and revenues. It is not in the best interest of America’s taxpaying public; it is not in the best interest of our citizens who own the public rights of way; it is not in the best interest of the widest number of consumers, who, depending on where they live or how much they are willing to spend, may be shut out from the most up-to-date technology by companies seeking to service only the most well-to-do neighborhoods. The cities and towns represented by NLC have urged fairness in the effort to reform telecommunications policy. That did not happen today.”
http://www.nlc.org/Newsroom/Press_Room/13105.cfm

* NATOA Responds to FCC Vote on Jurisdiction and Franchising Authority
[SOURCE: National Association of Telecommunications Officers and Advisors]
NATOA’s Executive Director, Libby Beaty, responded to the news of the vote: “Today the FCC played Scrooge to local governments when they changed the agency from a regulatory to a legislative body. Unfortunately, unlike Scrooge, it’s highly unlikely the FCC will see the error of its way absent court or Congressional intervention. We will look forward to providing them both opportunities.” We will respond to the entirety of the Commission’s order when it is released and available for thorough review.
http://www.natoa.org/

* NCTA Statement
Kyle McSlarrow, President & CEO, National Cable & Telecommunications Association: "The FCC’s pricing survey fails to account for the benefits of bundled pricing, its favorable impact on cable prices, and the greatly increased value of cable services in a digital world. Ignoring these factors makes the pricing survey obsolete on arrival and an unsound basis for policy decisions. On today’s decision on video franchising, it appears that the FCC pared back some of the more troubling proposals that had been floated in recent days. The Commission made crystal clear that its order isn't a license for AT&T to ignore the franchising process and operate under different rules from its competitors. In addition, the Commission stepped back from pre-empting all state franchising laws, many of which have acknowledged the value to consumers of a level playing field for all competitors. We appreciate the FCC’s commitment to complete action within six months on a further notice to address regulatory parity. But the simple fact is that today’s order doesn't provide a level playing field, a concept that has been universally supported up until now at federal, state, and local levels. We don't believe the Commission has the legal authority to establish separate regimes for incumbents and new entrants in today’s highly competitive marketplace.”
http://www.ncta.com/ContentView.aspx?hidenavlink=true&type=reltyp2&conte...

* ACA’s Polka: Martin Misguided
[SOURCE: Multichannel News]
American Cable Association CEO Matthew M. Polka had plenty to say about the Federal Communications Commission’s decision on cable rates and local franchising. On cable rates, Polka said, “The answer is very simple. Who controls the rates of the content on cable, satellite and telco video today? Not the operators, but the media-conglomerate programmers, whose rates and increases far exceed the data reported by the FCC on cable rates. Why are satellite’s rates the same or higher than cable’s? Why did [Verizon Communications’ FiOS TV] just announce a 7.6% increase for January?” On video franchising, Polka said, "These new rules upset the balance of competition, take authority away from local governments and give the Bell companies a free pass on serving all subscribers in a market. Through these rules, the FCC is ratifying the red-lining practice of building out service in only the wealthiest areas.”
http://www.multichannel.com/article/CA6402183.html?display=Breaking+News

* TIA Commends FCC's Decision to Facilitate Entry into the Video Services Market
The Telecommunications Industry Association has long urged the FCC to impose uniform requirements on local franchise authorities (LFAs) to minimize the adverse effects of the existing local franchise process. TIA believes the commission’s decision today is consistent with its momentum toward a deregulatory framework necessary to increase broadband deployment to all Americans.
http://www.tiaonline.org/business/media/press_releases/2006/PR-122.cfm

* NAB Statement
National Association of Broadcasters Executive Vice President of Media Relations Dennis Wharton: "NAB salutes the FCC for taking decisive action to increase much needed competition to cable monopolies. With today's action, the Commission has delivered a holiday treat for cable customers who will now have a choice and the ability to avoid rate hikes that run two to four times the annual rate of inflation."
http://www.nab.org/AM/Template.cfm?Section=News_Room&CONTENTID=7542&TEMP...

FCC FINDS CABLE RATES ROSE 5.2% IN 2004
[SOURCE: tvnewsday]
The FCC released its annual report on cable industry prices on Wednesday. The report shows that average monthly rates for cable service—including basic and expanded basic cable programming services—increased by 5.2% over the 12-month period ending Jan. 1, 2005, from $40.91 to $43.04, and by 93% since the period immediately prior to Congress’s enactment of the Telecommunications Act of 1996. Specifically, the average monthly charge for basic service increased by 3.3%, rising from $13.84 on Jan. 1, 2004 to $14.30 on Jan. 1, 2005. Over the same period, the average charge for expanded basic service rose from $27.07 to $28.74, an increase of 6.2%—more than 84% of cable consumers subscribe to the expanded basic service. The report finds that for the 12-month period ending Jan. 1, 2005, the average monthly rate for basic and expanded basic cable programming services increased by 4.9% for the group of cable operators in communities relieved from basic tier rate regulation (the “effective competition group”) and by 5.2% for the group of cable operators without a finding of effective competition (the “noncompetitive group”). As of Jan. 1, 2005, cable operators without a finding of effective competition charged an average of $43.33 per month for basic and expanded basic programming, which was 7.9% more than the $40.15 charged by the group of operators with a finding of effective competition. The degree of difference, however, varied by subgroup, with the highest percentage differential associated with the subgroup of cable operators for which relief from rate regulation was based on a second cable operator.
http://www.tvnewsday.com/articles/2006/12/20/daily.11/

* FCC Releases Report on 2005 Cable Industry Prices
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-269116A1.doc

* Cable Rep Rips Into FCC Price Report
[SOURCE: MediaWeek, AUTHOR: Brooks Boliek, The Hollywood Reporter]
Kyle McSlarrow, president and CEO of the National Cable and Telecommunications Assn, said measuring cable prices simply by looking at the cost to consumers of analog video "is a fundamental misunderstanding of what our business is doing. It's like we've been put in a time warp." McSlarrow contends that the report fails to take in cable's entire service, from broadband Internet access to telephone service.
http://www.mediaweek.com/mw/news/recent_display.jsp?vnu_content_id=10035...

IP CAPTIONED TELEPHONE SERVICE ELIGIBLE FOR COMPENSATION FROM TRS FUND
[SOURCE: Federal Communications Commission]
The FCC adopted a ruling that Internet Protocol (IP) captioned telephone service (IP CTS) is a type of telecommunications relay service (TRS) eligible for compensation from the Interstate TRS Fund (Fund). The Commission acted in response to a petition by Ultratec, Inc., that was widely supported by the disability community. An IP captioned telephone call can be set up similar to a two-line captioned telephone call, except that the line from the user to the provider would be via the Internet, not a second PSTN line. The consumer would make a voice to voice call to the other party on a standard telephone and the PSTN; at the same time, the voice of the called party is directed from the consumer's telephone to a personal computer (or similar device) that routes it to the provider via the Internet. The provider, in turn, sends back to the consumer the text of what was spoken. As a result, the consumer can both hear (to the extent possible) what the called party is saying over the standard voice telephone headset, and read the text of what the called party said on the computer or similar device.
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-269113A6.doc

COMMENT SOUGHT ON PUBLIC SAFETY NETWORK
[SOURCE: Federal Communications Commission]
On Wednesday, the FCC adopted a Ninth Notice of Proposed Rulemaking that proposes a national, centralized approach to maximize public safety access to interoperable, broadband spectrum in the 700 MHz band. In addition, the initiative seeks to promote the deployment of advanced broadband applications, related radio technologies, and modern, IP-based system architecture. The proposals contained in this item are designed to meet the following public safety objectives: (1) opportunities for broadband, national, interoperable use of 700 MHz spectrum; (2) new sources of funding for the build-out and operation of the national public safety network; (3) economies of scale and scope in production and competition in supply to maximize cost effectiveness; (4) efficient spectrum use; (5) network robustness and survivability; and (6) flexible, modern IP-based wireless system architecture.
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-269117A1.doc
See NPRM: http://hraunfoss.fcc.gov/edocs_public/attachmatch/FCC-06-181A1.doc