Benton RSS Feed

Three events to keep an eye on this week: 1) the=20
FCC media ownership hearing in Nashville today=20
(watch it at http://www.fcc.gov/realaudio/), 2)=20
the Commercial Mobile Service Alert Advisory=20
Committee kicks off on Tuesday (watch it at=20
http://www.fcc.gov/realaudio/) and 3) the=20
Spectrum Management Advisory Committee begins=20
work on Wednesday. For these and other upcoming=20
media policy events, see http://www.benton.org

NEWS FROM CONGRESS
Congress ends with a Flurry of Legislation
-- Telecom bill dies
-- US SAFE WEB Act passes
-- Senate Approves Pretexting Legislation
-- Congress Passes Call Home Act of 2006
-- Kneuer Confirmed to head NTIA

NEWS FROM THE FCC
FCC: McDowell can vote on AT&T-BellSouth=20
(Includes links to the ruling, reaction & coverage)
Republicans Push FCC on Merger Vote
FCC Hacks Away at V-Chip
AT&T/BellSouth responds to challenge based on GAO competition study

IN THE STATES
California Taps Telecom Panel
Nebraskan Group Seeks Vote On Municipal Broadband Rules

QUICKLY -- The Media Is in Need of Some Mending;=20
A Caffeine Jolt for PBS Fund-Raising; Liberty to=20
Regain Ownership Of Regional Sports Channels; 5 firms form 'medical Interne=
t'

NEWS FROM CONGRESS

CONGRESS ENDS WITH A FLURRY OF LEGISLATION
[SOURCE: Reuters, AUTHOR: Richard Cowan and Thomas Ferraro]
The Republican-led 109th Congress ended on=20
Saturday, sending President Bush a stack of=20
bills the Senate and House of Representatives=20
passed as Democrats, victorious in last month's=20
elections, prepared to take control of the new=20
110th Congress set to convene on January 4. Below=20
see links to some of what was done -- and wasn't=20
done -- in the 109th's last few hours.
http://today.reuters.com/News/newsArticle.aspx?type=3DpoliticsNews&storyID=
=3D2006-12-09T181639Z_01_N08454270_RTRUKOC_0_US-USA-CONGRESS.xml&WTmodLoc=
=3DPolNewsHome_C1_%5bFeed%5d-8
* Huge Victory for Real People as Telco Bill Dies
[Commentary] "The gavel has fallen on the 109th=20
Congress marking the demise of entrenched=20
corporate efforts to legislate away our Internet=20
freedoms =97 and a stunning victory for real people=20
who want to retain control of the Internet."
http://www.savetheinternet.com/blog/2006/12/08/congress-closes-telco-bil...
ies-on-the-vine/
* Congress Approves US SAFE WEB Act
Congress approved S. 1608, the =93Undertaking Spam,=20
Spyware, And Fraud Enforcement With Enforcers=20
Beyond Borders Act of 2006=94 (US SAFE WEB Act of=20
2006). The bill will improve the Federal Trade=20
Commission=92s ability to provide international=20
consumer protections specifically to combat spam,=20
spyware, and Internet fraud and deception.
http://commerce.senate.gov/public/index.cfm?FuseAction=3DPressReleases.D...
il&PressRelease_id=3D248704&Month=3D12&Year=3D2006
* Senate Approves Pretexting Legislation
The United States Senate today passed H.R. 4709,=20
the Telephone Records and Privacy Protection Act=20
of 2006. Senate Commerce Committee Chairman Ted=20
Stevens (R-Alaska) was a co-sponsor of the Senate=20
companion to the House legislation, S. 2178. The=20
measure will criminalize the practice=20
of =93pretexting,=94 which consists of obtaining=20
confidential phone records information by making=20
false or fraudulent statements to a telephone=20
service provider, providing false or fraudulent=20
documents to a telephone service provider, or=20
accessing customer accounts through the Internet=20
or by fraudulent computer-related activities=20
without prior authorization. The bill will also=20
prohibit the unauthorized sale or transfer of=20
confidential phone records information, or the=20
receipt of such information with the knowledge=20
that it was fraudulently obtained.
http://commerce.senate.gov/public/index.cfm?FuseAction=3DPressReleases.D...
il&PressRelease_id=3D248702&Month=3D12&Year=3D2006
* Senate passes bill to criminalize pretexting
http://news.com.com/Senate+passes+bill+to+criminalize+pretexting/2100-10...
3-6142350.html?tag=3Dnefd.top
* Congress Passes Call Home Act of 2006
Congress passed the Call Home Act of 2006 (S.=20
2653). This legislation will direct the Federal=20
Communications Commission, in coordination with=20
the Department of Defense and the Department of=20
State, to seek to reduce phone rates for Armed=20
Forces personnel deployed overseas. The=20
legislation authorizes the FCC to take actions=20
necessary to reduce phone bills for troops=20
deployed overseas, including the waiver of=20
government fees, assessments, or other charges.=20
In seeking to reduce such telephone rates, the=20
legislation directs the FCC to evaluate and=20
analyze the costs of calls to and from official=20
duty stations; evaluate methods of reducing rates=20
including the deployment of new technology such=20
as Voice-over Internet Protocol (VoIP); encourage=20
phone companies to adopt flexible billing for=20
troops and their dependents; and seek agreements=20
with foreign governments to reduce international=20
surcharges on phone calls. The bill also includes=20
language (added by Senator Stevens) that will=20
help improve public safety by speeding the=20
distribution of $1 billion dollars in funding for=20
public safety interoperability communications=20
made available in the Deficit Reduction Act of=20
2005. The public safety community would receive=20
the money by the end of this fiscal year.
http://commerce.senate.gov/public/index.cfm?FuseAction=3DPressReleases.D...
il&PressRelease_id=3D248701&Month=3D12&Year=3D2006
* Kneuer Confirmed to head NTIA
On December 9, the Senate confirmed John M. R.=20
Kneuer, of New Jersey, to be Assistant Secretary=20
of Commerce for Communications and Information.=20
Assist Sec Kneuer heads the National=20
Telecommunications and Information Administration=20
(NTIA), the President's principal adviser on=20
telecommunications and information policy issues.
http://www.senate.gov/pagelayout/legislative/one_item_and_teasers/nom_co...
.htm

NEWS FROM THE FCC

FCC: MCDOWELL CAN VOTE ON AT&T-BELLSOUTH
[SOURCE: Associated Press, AUTHOR: John Dunbar]
Federal Communications Commission General Counsel=20
Sam Feder on Friday authorized Commissioner=20
Robert McDowell to vote on the proposed buyout of=20
BellSouth by AT&T despite an apparent conflict of=20
interest. The move could break a deadlock on the=20
deal. The decision came a week after FCC Chairman=20
Kevin Martin declared an impasse in the=20
proceeding and asked for the ruling. The next=20
open meeting for the agency is Dec. 20, but=20
Chairman Martin said on Friday night that he does=20
not anticipate putting the issue up for a vote=20
then. It would not give McDowell enough time to=20
get "up to speed" on the issues, Chairman Martin=20
said. In Feder's eight-page opinion, he argued=20
that Commissioner McDowell should be allowed to=20
vote because he had not participated in the=20
merger proceeding as a lobbyist, did not stand to=20
gain financially from his vote and that it would=20
be impossible for someone else to take his place=20
in the proceeding. But Feder was also clearly=20
torn, noting that Robert Cusick, director of the=20
Office of Government Ethics had said the decision=20
was a close call on which reasonable people could=20
differ and that Cusick said he would decide=20
against authorization but that "the FCC could=20
reasonably come out the other way." Feder based=20
his decision on the fact that McDowell has voted=20
on other proceedings in which AT&T and BellSouth=20
filed comments. While Commissioner McDowell, a=20
former lobbyist for a trade group that opposes=20
the merger, is authorized to participate, that=20
doesn't mean he will be forced to vote yes or no.=20
He could still abstain and, in a released=20
statement (see link below), did not indicate=20
whether he had made up his mind, saying only that=20
he was reviewing Feder's opinion. The deal would=20
be the biggest in U.S. telecommunications history.
http://www.businessweek.com/ap/financialnews/D8LT50100.htm
* GC Feder's decision:
http://www.fcc.gov/ogc/documents/ATT-Authorization-Memo-120806.pdf
* Commissioner McDowell's reaction:
http://www.fcc.gov/commissioners/mcdowell/documents/McDowell-Statement-A...
BellSouth-Merger-120806.pdf
* Chairman Martin's reaction:
"It is in the interest of the government and the=20
American people to move this matter forward in a=20
timely fashion. To that end, I look forward to=20
working with all of my colleagues here on the Commission to reach a consens=
us."
http://www.fcc.gov/commissioners/martin/documents/Martin-Statement-ATT-B...
South-Merger-120806.pdf
* Reaction from Sen Ted Stevens:
=93This merger has been under consideration for=20
almost nine months. The Commission considered=20
more than 10,000 comments and 600 reply comments.=20
But now it is deadlocked. We have an odd number=20
of FCC Commissioners for a reason, and the=20
Commission functions best when there is a fifth=20
person involved. A 2-2 stalemate does not serve=20
the public interest. Now that the General=20
Counsel has made this decision, I urge the=20
Commission to reach a timely decision.=94
http://commerce.senate.gov/public/index.cfm?FuseAction=3DPressReleases.D...
il&PressRelease_id=3D248696&Month=3D12&Year=3D2006
* FCC commissioner can break tie in AT&T-BellSouth merger
http://news.com.com/FCC+commissioner+can+break+tie+in+ATT-BellSouth+merg...
2100-1036_3-6142312.html?tag=3Dnefd.top
* FCC Ignores Ethics to Speed AT&T Merger (Free Press press release):
"Pressing Commissioner McDowell to violate his=20
ethical standards and cast the deciding vote on=20
this mega-merger is a flagrant affront to the=20
public's demand for ethical and impartial=20
policymaking. The case the FCC makes for this=20
excessive move is thin and unpersuasive. The=20
director of the executive branch's Office of=20
Government Ethics indicated he would not=20
authorize Commissioner McDowell's vote. The=20
newest commissioner may still abstain, but=20
clearly the pressure is on for him to vote. The=20
proposed merger of AT&T and BellSouth would=20
constitute the largest merger in the history of=20
U.S. telecommunications and effectively resurrect=20
Ma Bell. This new behemoth would dominate the=20
broadband market and wield immense power over=20
what we see and do online. The public interest=20
demands a reasonable compromise to protect=20
consumers, not an FCC with compromised ethics=20
bending over backward to serve the interests of=20
large corporations. With nothing less than the=20
future of the Internet at stake, the FCC has a=20
responsibility to protect consumers and serve the=20
public interest by placing conditions on this=20
deal. Chairman Martin's strong-arm tactics represent a new low for the FCC."
http://freepress.net/press/release.php?id=3D189
* AT&T/BellSouth & Cisco: Business Partners in the Marketplace and at the F=
CC
[SOURCE: Digital Destiny, AUTHOR: Jeff Chester]
[Commentary] The FCC=92s General Counsel has quoted=20
from a letter Cisco sent urging the FCC to=20
swiftly act on the AT&T-BellSouth mega broadband=20
merger. But Cisco=92s plea is mere special interest=20
lobbying for its =93strategic=94 business partner-AT&T.
http://www.democraticmedia.org/jcblog/?p=3D140
* McDowell Cleared To Vote on AT&T/BellSouth
http://www.broadcastingcable.com/article/CA6398633.html
* McDowell can vote on AT&T/BellSouth merger
http://www.lasarletter.net/drupal/node/254

REPUBLICANS PUSH FCC ON MERGER VOTE
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
On the same day that the FCC's general counsel=20
cleared FCC Commissioner Robert McDowell to vote=20
on the AT&T/BellSouth Merger, a group of 14=20
Republican Senators urged the Commission to vote=20
on the merger at its Dec. 20 meeting. Pointing to=20
the Justice Department's conclusion two months=20
ago that the merger raised no antitrust flags,=20
and that it has already been approved by "18=20
state public service commissions and three=20
foreign countries... "Further delay," they argued=20
in a letter to FCC Chairman Kevin Martin, "will=20
only harm consumers as well as employees and=20
shareholders of both companies." Signatories to=20
the letter were Senators Jim DeMint (SC), Kay=20
Bailey Hutchison (TX), Sam Brownback (KS), Pat=20
Roberts (KS), Richard Burr (NC), Lindsey Graham=20
(SC), Trent Lott (MS), David Vitter (LA), John=20
Ensign (NV), John Sununu (NH), Mel Martinez (FL), and Jeff Sessions (AL).
http://www.broadcastingcable.com/article/CA6398635.html?display=3DBreaki...
News

FCC HACKS AWAY AT VI-CHIP
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
The FCC thinks the V-chip isn't much help in=20
preventing kids from seeing programs that may=20
have dicey content. And in a filing to a federal=20
court last week, FCC lawyers say that the=20
commission itself plays something of an in loco=20
parentis (that's "in the place of a parent" for=20
you fellow French students) role to help parents,=20
even if parents won't help themselves.=20
Broadcasters prefer the ratings system and=20
descriptors -- L, V, etc. -- that can be used in=20
conjunction with the V-chip, and they argue that=20
their system is a less restrictive means of=20
regulating content. =93Less restrictive=94 is the=20
measuring stick the FCC is required to employ=20
when regulating broadcast speech. But if the=20
broadcasters' argument flies, it could undercut=20
the FCC's ability to regulate broadcast content,=20
period. The FCC held its ground last week. It=20
said the V-chip is ineffective and the ratings=20
confusing. Beyond that, it said, the V-chip would=20
not have helped during the programming in=20
question because they were =93misrated.=94 And more=20
broadly, it argued, the chip is insufficiently=20
understood by parents. The FCC said it has=20
=93independent and compelling interest in=20
preventing minors from being exposed to indecent=20
broadcasts.=94 It also maintained last week that it=20
was justified in decreeing cussing on the=20
Billboard Awards telecast indecent. Nothing in=20
broadcasters' arguments since then has swayed it=20
from that opinion, it said, and nothing prevents=20
it from levying hefty fines if it chooses.
http://www.broadcastingcable.com/article/CA6398661.html?display=3DNews

AT&T/BELLSOUTH RESPONDS TO CHALLENGE BASED ON GAO COMPETITION STUDY
[SOURCE: Lasar's Letter on the FCC, AUTHOR: Matthew Lasar]
AT&T and BellSouth have filed statements with the=20
Federal Communications Commission responding to=20
charges that a new report issued by the=20
Government and Accountability Office (GAO)=20
weakens its case for a merger of the two=20
corporations. The challenge comes from the Ad=20
Hoc Telecommunications Users Committee, which=20
filed the GAO survey with the FCC's=20
AT&T/BellSouth proceeding docket on December 1st.=20
"The GAO Study confirms what Ad Hoc and other=20
parties have been reporting to the Commission for=20
the past several years=97competitive alternatives=20
to ILEC special access services simply do not=20
exist at the vast majority of commercial=20
locations where enterprise customers require=20
those services," the Ad Hoc statement says. "As a=20
result, the Bell Operating Companies=92 ('BOCs')=20
have raised their prices in areas where the FCC=20
has de-regulated pricing." But AT&T/BellSouth's=20
reply to the Ad Hoc filing begs to differ, and=20
gets a little personal too. The December 7th=20
response accuses Ad Hoc of "glib rhetoric," and=20
contends that its filing "bizarrely and=20
incorrectly asserts that the GAO Study confirms=20
its claims, and supports its request that the=20
Commission condition approval of the=20
AT&T/BellSouth merger on the imposition of=20
radical and far-reaching limits on=20
AT&T/BellSouth=92s special access services." On the=20
contrary, AT&T/BellSouth attorneys say, the GAO=20
study shows that prices have declined in all=20
markets. "GAO=92s only other conclusion was that=20
the Commission needs more and better data to=20
assess competition for special access services =97a=20
conclusion with which AT&T agrees," its filing=20
states. Actually, that was not the GAO's only=20
other conclusion. The audit of the FCC's=20
deregulation policies did state that incumbent=20
telephone company list prices have declined, but=20
attributed this to "price decreases due to=20
regulation and contract discounts." "However,"=20
the report continues, "in areas where FCC granted=20
full pricing flexibility due to the presumed=20
presence of competitive alternatives, list prices=20
and average revenues tend to be higher than or=20
the same as list prices and average revenues in=20
areas still under some FCC price regulation." The=20
GAO's most prominent finding, summarized in the=20
first sentence of the report, suggests that=20
meaningful competition does not exist in the=20
commercial telecommunications business in the=20
United States. "In the 16 major metropolitan=20
areas we examined, available data suggest that=20
facilities-based competitive alternatives for=20
dedicated access are not widely available," the=20
study discloses. "Data on the presence of=20
competitors in commercial buildings suggest that=20
competitors are serving, on average, less than 6=20
percent of the buildings with demand for dedicated access in these areas."
http://www.lasarletter.net/drupal/node/255

IN THE STATES

CALIFORNIA TAPS TELECOM PANEL
[SOURCE: Multichannel News, AUTHOR: Linda Haugsted]
Executives from Verizon Communications, AT&T and=20
Cox Communications are among 21 industry leaders=20
who will craft California=92s future=20
telecommunications policy as part of a task force=20
named by Gov. Arnold Schwarzenegger (R).=20
According to Gov Schwarzenegger=92s executive=20
order, the task force will : 1) create a database=20
within the state Business, Transportation and=20
Housing Agency that will link private broadband=20
companies with state transportation agencies in=20
order to better coordinate fiber optic=20
installation; 2) establish pricing policy for the=20
use of rights-of-way, based on how much it=20
actually costs the state when providers access=20
its roads; 3) create streamlined rights-of-way=20
permitting procedures; 4) use information=20
gathered by the bipartisan panel to map the=20
state=92s current broadband resources. The governor=20
wants more public meetings available via=20
broadband to the state=92s citizens and training=20
available to state staff, so the BTH will work=20
with the General Services agency to reach that=20
goal. All state buildings should also be equipped=20
as wireless hot spots, according to=20
Schwarzenegger=92s executive order. The governor=20
also wants state agencies to enable VoIP=20
technologies and include broadband conduit in all infrastructure planning.
http://www.multichannel.com/article/CA6398567.html?display=3DTop+Stories

NEBRASKAN GROUP SEEKS VOTE ON MUNICIPAL BROADBAND RULES
[SOURCE: Technology Daily 12/6, AUTHOR: Michael Martinez]
A group of Nebraskans is trying to mount=20
resistance to a state law preventing=20
municipalities and utilities from owning and=20
operating their own high-speed Internet networks.=20
A 2005 state law imposed a two-year moratorium=20
against publicly owned telecommunications=20
services. But on Monday, an executive of an=20
Internet firm based in Nebraska filed papers with=20
Secretary of State John Gale to authorize a=20
ballot initiative that would permit communities=20
and power companies to provide telecommunications=20
services, including broadband. Linda Aerni, the=20
president of Community Internet Services, took=20
the first step in pushing for such a ballot=20
initiative. Voters will be able to decide on the=20
issue themselves -- if about 80,000 signatures=20
are collected by next summer for a ballot=20
initiative. Earlier this year, the state=20
commissioned a task force, of which Aerni was a=20
member, to examine the issue. That group last=20
month recommended that lawmakers continue to keep=20
public entities out of the broadband business.=20
Aerni was among the minority that objected to that conclusion.
http://www.njtelecomupdate.com/lenya/telco/live/tb-TVFR1165583189239.html

QUICKLY

THE MEDIA IS IN NEED OF SOME MENDING
[SOURCE: Wall Street Journal, AUTHOR: Peter Kann, chairman of Dow Jones]
[Commentsary] At its best news informs and=20
enlightens the citizens of a free society and=20
thereby safeguards and strengthens our democracy.=20
At its worst -- dishonest, unfair, irresponsible=20
-- the media has potential to erode the public=20
trust on which its own success depends and to=20
corrode the democratic system of which it is so=20
indispensably a part. Kahn offers ten current=20
trends in the mass media that "ought to disturb=20
us": 1) The blurring of the lines between=20
journalism and entertainment. 2) The blurring of=20
lines between news and opinion. 3) The blending=20
of news and advertising, sponsorships or other=20
commercial relationships. 4) The problems and=20
pitfalls inherent in pack journalism. 5) The=20
issue of conflict and context. 6) The exaggerated=20
tendency toward pessimism. 7) The growing media=20
fascination with the bizarre, the perverse and=20
the pathological. 8) Social orthodoxy, or=20
political correctness. 9) The media's short=20
attention span. 10) The matter of power.
http://online.wsj.com/article/SB116579769032446051.html?mod=3Dtodays_us_...
nion
(requires subscription)

A CAFFEINE JOLT FOR PBS FUND-RAISING
[SOURCE: New York Times, AUTHOR: Maria Aspan]
Last week, in its first non-media-related=20
commercial venture, the Public Broadcasting=20
Service (PBS) announced a partnership with Green=20
Mountain Coffee Roasters. Green Mountain has=20
produced and packaged a PBS Blend, which is being=20
sold by Green Mountain and the PBS Web site,=20
shoppbs.org, in a brand licensing arrangement.=20
PBS will also make the coffee available to its=20
member stations as a way to keep staff awake and=20
alert -- and a product to offer during on-air=20
fund-raising pledge drives. Some media critics=20
see the coffee deal as veering into dangerously=20
commercial territory for the public television=20
company. Jeff Chester of the Center for Digital=20
Democracy, a Washington-based nonprofit=20
organization, wrote in his blog=20
(democraticmedia.org/jcblog/) on Thursday that=20
commercial ventures like the coffee deal were =93a=20
short-sighted and short-term strategy=94 for PBS=20
that threatened =93to undermine the rationale for taxpayer support.=94
http://www.nytimes.com/2006/12/11/business/media/11pbs.html
(requires registration)

LIBERTY TO REGAIN OWNERSHIP OF REGIONAL SPORTS CHANNELS
[SOURCE: Wall Street Journal, AUTHOR: Adam=20
Thompson adam.thompson( at )wsj.com and Julia Angwin]
As part of a far-reaching agreement with News=20
Corp. expected to be announced this week, Liberty=20
Media Corp. will regain ownership of regional=20
sports cable channels in Pittsburgh, Seattle and=20
its home market of Denver. With regional coverage=20
of professional sports teams including the=20
Pittsburgh Pirates, Seattle Mariners and Colorado=20
Rockies, the networks are a small but vital piece=20
of a much larger swap under discussion between=20
the two companies. The centerpiece of the deal is=20
News Corp.'s purchase of Liberty's $11 billion=20
stake in the media giant in exchange for News=20
Corp's 38.6% stake in satellite-TV firm DirecTV=20
Group. To qualify for a tax-free swap, 5% of the=20
assets being traded to Liberty must be operating=20
businesses. As the DirecTV stake is an investment=20
for News Corp., the media conglomerate agreed to=20
include the three sports networks. Liberty will also receive cash.
http://online.wsj.com/article/SB116580842675746248.html?mod=3Dtodays_us_...
ketplace
(requires subscription)

5 FIRMS FOR 'MEDICAL INTERNET'
[SOURCE: San Francisco Chronicle, AUTHOR: Ricardo Alonso-Zaldivar]
Five major American companies, including Santa=20
Clara chip giant Intel Corp., have joined forces=20
to create a "medical Internet" on which about 2.5=20
million workers can bring together their personal=20
health records in one secure location, providing=20
access to everything from prescriptions and=20
cholesterol readings to family medical histories.=20
The system, unveiled Wednesday, could reduce the=20
chances of medical mistakes, improve treatment of=20
chronic illnesses and eventually save billions of=20
dollars by avoiding duplicative services, designers say.
http://www.sfgate.com/cgi-bin/article.cgi?file=3D/c/a/2006/12/07/BUGOHMQ...
1.DTL&type=3Dtech
--------------------------------------------------------------
Good luck, Cassidy.
--------------------------------------------------------------
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.
--------------------------------------------------------------