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NEWS FROM CONGRESS
Congress adjourns for Election with work Unfinished
Senate Approves CPB Nominees
Martin Nomination Vote On Hold
Congress approves Internet Gambling Ban Bill

MEDIA & CHILDREN
Parents Have Content-Control Info, Says Stevens
For Quality TV, Mad Scientist Returns
Brownback Trims the Fat

TELECOM
Lawmakers Hint At Conditions On AT&T-BellSouth Merger
Cable Companies Seek AT&T-BellSouth Conditions
Telcos Celebrate Franchise Wins

INTERNET/BROADBAND
ICANN Joint Project Agreement
Internet freedom reigns in Amsterdam

MEDIA & ELECTIONS
Outside groups spending millions on ads

MEDIA OWNERSHIP
Oct 3 Public Hearing on Media Ownership in Los Angeles

BROADCASTING
TV: More Bang for More Bucks
Ad Buyers Eye Clear Channel's 'Blink' Spots

QUICKLY -- Regulators want rural frequency; NCTA asks for Set-Top Waiver

NEWS FROM CONGRESS

CONGRESS ADJOURNS FOR ELECTION WITH WORK UNFINISHED
[SOURCE: Reuters, AUTHOR: Thomas Ferraro]
Leaving behind a pile of unfinished work, members=20
of the scandal-rocked U.S. Congress adjourned and=20
went home on Saturday to ask voters to re-elect=20
them in five weeks. With polls showing President=20
George W. Bush's fellow Republicans could lose=20
control of Congress in the November 7 contests,=20
their leaders even decided to depart a week early=20
to give members more time to campaign. Aside from=20
the ethics issues, critics have called this a=20
"do-nothing Congress," citing its failure on=20
legislation to clean up how it does business,=20
revamp the nation's immigration laws and overhaul=20
the Social Security retirement program. Lawmakers=20
couldn't even agree on a new budget and have to=20
return after the election to finish a number of=20
must-pass federal spending bills.
http://today.reuters.com/News/newsArticle.aspx?type=3DpoliticsNews&storyID=
=3D2006-09-30T134454Z_01_N30266110_RTRUKOC_0_US-CONGRESS.xml&WTmodLoc=3DPol=
NewsHome_C2_politicsNews-6

SENATE APPROVES CPB NOMINEES
[SOURCE: US Senate Commerce Committee]
The United States Senate on Friday unanimously=20
reported out several nominees including David=20
Pryor and Chris Boskin to be a Member of the=20
Board of Directors, Corporation for Public=20
Broadcasting. The nominees were approved by the=20
Senate Commerce Committee earlier last week.
http://commerce.senate.gov/public/index.cfm?FuseAction=3DPressReleases.D...
il&PressRelease_id=3D248682&Month=3D9&Year=3D2006

MARTIN NOMINATION VOTE ON HOLD
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
According to several sources, there is a hold on=20
the nomination of FCC Chairman Kevin Martin to a=20
second term on the Commission. The Senate=20
Commerce Committee voted earlier this month 21 to=20
0 to approve the renomination, but an expected=20
floor vote before the election break did not=20
materialized before the Senate adjourned. The=20
read over at the FCC is that it is a policy=20
issue, not a personal one, that prompted the=20
hold. The hold could be lifted at any time. One=20
theory is that the hold was placed by Senator=20
John Sununu (R-NH), though he was one of the 21=20
who voted for the nomination in committee, over=20
the issue of e911. That is the requirement,=20
pushed by the FCC, that interconnected VOIP=20
services -- ones that permit calls to begin and=20
end on traditional public switched telephone=20
networks (PSTN) -- deliver 911 calls to a local=20
emergency operator as a standard feature rather=20
than an option. Senator Sununu's office had not confirmed or denied the hol=
d.
http://www.broadcastingcable.com/article/CA6376515.html

CONGRESS APPROVES INTERNET GAMBLING BAN BILL
[SOURCE: Reuters, AUTHOR: Peter Kaplan]
Most forms of Internet gambling would be banned=20
under a bill that received final congressional=20
approval early Saturday. The House of=20
Representatives and Senate approved the measure=20
and sent it to President George W. Bush to sign=20
into law. The bill, a compromise between earlier=20
versions passed by the two chambers, would make=20
it illegal for banks and credit card companies to=20
make payments to online gambling sites. The final=20
bill dropped earlier provisions opposed by some=20
gaming interests that would have clarified that a=20
1961 federal law banning interstate telephone=20
betting also covers an array of online gambling.
http://today.reuters.com/news/newsArticle.aspx?type=3DinternetNews&storyID=
=3D2006-09-30T052352Z_01_N29415181_RTRUKOC_0_US-CONGRESS-TECH-GAMBLING.xml&=
WTmodLoc=3DInternetNewsHome_C1_%5bFeed%5d-2
* Online gaming in crisis over U.S. ban
http://today.reuters.com/News/newsArticle.aspx?type=3DinternetNews&storyID=
=3D2006-10-02T111449Z_01_WLA3660_RTRUKOC_0_US-LEISURE-PARTYGAMING.xml&WTmod=
Loc=3DInternetNewsHome_C2_internetNews-4

MEDIA & CHILDREN

PARENTS HAVE CONTENT-CONTROL INFO, SAYS STEVENS
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
Senate Commerce Committee Chairman Ted Stevens=20
(R-Alaska) took to the Senate floor Thursday=20
night to praise the pan-media parental education=20
campaign headed by former Motion Picture=20
Association of America chief Jack Valenti and=20
suggest that it was working. Citing the "Be the=20
Boss" campaign's two PSA's and www.thetvboss.org=20
Web site, Sen Stevens said, "Parents now have=20
information about the V-chip, cable and satellite=20
controls, and television ratings." Sen Stevens=20
also advised his colleagues to join the education=20
effort. "Earlier this week, kits containing=20
information about this campaign were delivered to=20
every Member of Congress," he said, "I urge my=20
colleagues to share these valuable resources with=20
their constituents." While Sen Stevens has said=20
something must be done to curb the "indecent"=20
content on broadcast and cable TV, he has pushed=20
for industry solutions rather than regulation.
http://www.broadcastingcable.com/article/CA6376735.html?display=3DBreaki...
News

FOR QUALITY TV, MAD SCIENTIST RETURNS
[SOURCE: New York Times, AUTHOR: Elizabeth Jensen]
On Tuesday the Federal Communications Commission=20
updated rules to increase the amount of=20
educational and informational children=92s=20
programming that broadcast TV stations need to=20
show as they move into the digital era and split=20
their signal into many different program streams.=20
And once again, it=92s =93Beakman=92s World=94 to the=20
rescue, but this time in reruns. Stations=92 demand=20
for so-called E/I, or educational and=20
informational, programming is growing, but=20
programming executives say the supply isn't, as=20
producers find it more lucrative to make new=20
shows tied to merchandise. While the FCC hopes=20
that the new rules will increase quality programs=20
for children, Sony Pictures Television decided=20
there was also a market for old episodes of=20
=93Beakman=92s World,=94 a show that first appeared in=20
syndication in 1992. The FCC lets stations=20
monitor whether they are in compliance, which=20
children=92s advocates have complained allows some=20
stations to skirt the requirements. =93If you start=20
watching what is labeled E/I, very little is=20
=91Beakman=92s World,=92=94 said Gloria Tristani, a=20
former FCC commissioner who is now president of=20
the Benton Foundation, which works on public=20
interest issues as they relate to communications.=20
=93I would pose that maybe half of it wouldn't pass=20
the test, if anyone were monitoring it,=94 she=20
said, adding that there had been no recent studies.
http://www.nytimes.com/2006/09/30/arts/television/30beak.html
(requires registration)

BROWNBACK TRIMS THE FAT
[SOURCE: Broadcasting&Cable, AUTHOR: Editorial Sraff]
[Commentary] B&C applauds Sen. Sam Brownback=20
(R-KS) and the FCC for creating a new joint task=20
force on the media and childhood obesity. "The=20
government does not get to intervene in speech=20
unless there is a compelling government interest.=20
Well, a nation of children developing diabetes,=20
heart disease and other serious health problems,=20
and potentially living shorter, sicker lives than=20
the generation before, sounds pretty compelling from here."
http://www.broadcastingcable.com/article/CA6376819.html?display=3DOpinion

TELECOM

LAWMAKERS HINT AT CONDITIONS ON AT&T-BELLSOUTH MERGER
[SOURCE: Technology Daily 9/28, AUTHOR: David Hatch]
Sens. Mike DeWine (R-OH) and Herb Kohl (D-WI)=20
urged the FCC and Justice Department to consider=20
imposing conditions on the proposed AT&T and=20
BellSouth telecommunications merger. In letters=20
to the agencies, the senators said divestitures=20
of company assets may be needed, along with curbs=20
on the ability of the merged parties to=20
"warehouse" spectrum, thus restricting it from=20
competitors. They also offered this warning: "The=20
significant expansion in size and scope heralded=20
by this merger makes it important for your=20
agencies to be mindful of the general competition=20
policy concern" of maintaining open markets.=20
Their proposals are at odds with last week's=20
recommendation from Republican FCC Chairman Kevin=20
Martin that no conditions be placed on the=20
transaction, which would create the nation's largest telecom company.
http://www.njtelecomupdate.com/lenya/telco/live/tb-ONOQ1159551166617.html

CABLE COMPANIES SEEK AT&T-BELLSOUTH CONDITIONS
[SOURCE: Multichannel News 9/28, AUTHOR: Ted Hearn]
Five major cable companies Wednesday asked for=20
conditions on AT&T=92s merger with BellSouth to=20
ensure that the combined phone giants can't=20
discriminate against cable=92s competing=20
digital-phone service. The cable companies=20
seeking conditions were Advance/Newhouse=20
Communications, Charter Communications,=20
Cablevision Systems, Cox Communications and=20
Insight Communications. Each has introduced voice=20
over Internet protocol to cable subscribers. The=20
cable companies said in a letter to the Federal=20
Communications Commission that some of the=20
conditions they want should apply to all cable=20
VoIP providers, meaning cable=92s biggest players=20
-- Comcast and Time Warner Cable -- would benefit=20
without actually having to take a public position at the FCC.
http://www.multichannel.com/article/CA6376281.html?display=3DBreaking+News

TELCOS CELEBRATE FRANCHISE WINS
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
California Governor Arnold Schwarzenegger Friday=20
signed the state's new video franchise reform=20
legislation. The law makes it easier for=20
competitors like telephone companies to get into=20
the multichannel video business in competition to=20
cable. The signing ceremony came a day after a=20
judge in Texas rejected a challenge to a similar law there.
http://www.broadcastingcable.com/article/CA6376739.html?display=3DBreaki...
News

INTERNET/BROADBAND

ICANN JOINT PROJECT AGREEMENT
[SOURCE: National Telecommunications and Information Administration]
The Commerce Department on Friday announced it=20
has signed a Joint Project Agreement with the=20
Internet Corporation for Assigned Names and=20
Numbers (ICANN) to continue the transition of the=20
coordination of the technical functions relating=20
to the management of the Internet Domain Name and=20
Addressing System to the private sector. It=20
focuses on institutionalizing transparency and=20
accountability mechanisms in the management of=20
the Internet domain name and addressing system.=20
The three year Joint Project Agreement extends=20
the current Memorandum of Understanding between=20
the Department and ICANN which expires on=20
September 30, 2006. It calls for a midpoint=20
review of ICANN=92s progress towards becoming a=20
more stable organization with greater=20
transparency and accountability in its procedures=20
and decision making, the department said. The=20
Joint Project Agreement follows an internal=20
review of the MOU and a public consultation=20
process that resulted in over 700 contributions=20
from individuals, private corporations, trade=20
associations, non-governmental entities and foreign governments.
http://www.ntia.doc.gov/ntiahome/press/2006/icannmou_09292006.htm
* Text of agreement:
http://www.ntia.doc.gov/ntiahome/domainname/agreements/jpa/ICANNJPA_0929...
6.htm
* Government keeps control of Web domain group ICANN
http://today.reuters.com/News/newsArticle.aspx?type=3DinternetNews&storyID=
=3D2006-09-29T215854Z_01_N29341088_RTRUKOC_0_US-ICANN.xml&WTmodLoc=3DIntern=
etNewsHome_C2_internetNews-1
* U.S. loosens control over Net oversight body
http://news.com.com/U.S.+loosens+control+over+Net+oversight+body/2100-10...
3-6121640.html?tag=3Dhtml.alert

INTERNET FREEDOM REIGNS IN AMSTERDAM
[SOURCE: Reuters, AUTHOR: Lucas van Grinsven]
Amsterdam has the world's busiest Internet=20
exchange, thanks to nuclear physicists and=20
mathematicians who in the 1980s connected their=20
network needs with the academic belief that=20
knowledge needs to be free. At a time when the=20
neutrality of the Internet is at stake, and=20
Internet service providers (ISPs) are moving to=20
prioritize their premium traffic, the Amsterdam=20
Internet Exchange is a reminder that the Internet=20
was built on the principle of the unrestricted=20
exchange of ideas and information. The popularity=20
of the AMS-IX. the official name of the exchange,=20
is the result of a liberal foundation which has=20
created a place where ISPs can do business any=20
way they like. "'Anything goes unless it's=20
forbidden', was our motto from the beginning. We=20
added a few rules later on, but any unnecessary=20
organizing is being prevented," said Rob Blokzijl=20
from Nikhef, the National Institute for Nuclear=20
Physics and High Energy Physics in the=20
Netherlands. It shares this spirit with the=20
designers of the Internet who decided that all=20
data packets were created equal, and with Tim=20
Berners-Lee who developed the World Wide Web at=20
the Swiss particle physics lab CERN as a universal and neutral platform.
http://today.reuters.com/news/articlenews.aspx?type=3DtechnologyNews&sto...
D=3D2006-09-30T150030Z_01_N29420568_RTRUKOC_0_US-COLUMN-PLUGGEDIN.xml&WTmod=
Loc=3DTechNewsHome_C2_technologyNews-3

MEDIA & ELECTIONS

OUTSIDE GROUPS SPENDING MILLIONS ON ADS
[SOURCE: Associated Press 9/30, AUTHOR: Jim Kuhnhenn]
The images are searing, violent. Smoke and flames=20
pouring from the World Trade Center towers.=20
Bullets ripping through military protective=20
vests. The scenes are from this year's campaign=20
ad wars, waged outside the control of candidates=20
or political parties. Heading into the final=20
weeks before the Nov. 7 elections, independent=20
advocacy groups, many financed by a few wealthy=20
donors, are spending millions on ads in some of=20
the most contested states and congressional=20
districts. Between Jan. 1 and Sept. 26,=20
Republican-leaning groups spent $13.8 million on=20
advertising while advertising on behalf of=20
Democrats totaled $6.3 million, according to the=20
Campaign Media Analysis Group. Throw in the=20
advertising the political parties are paying for,=20
and the Republicans have spent $5 on ads for=20
every $3 spent by Democrats. That is a=20
significant reversal from 2004, when Democratic=20
groups outnumbered and outspent Republican=20
organizations. Now, some Democratic officials are=20
wondering when their deep-pocketed liberal allies will step in to help.
http://hosted.ap.org/dynamic/stories/I/INDEPENDENT_ADS?SITE=3DCAFRA&SECT...
=3DHOME&TEMPLATE=3DDEFAULT

MEDIA OWNERSHIP

OCT 3 PUBLIC HEARING ON MEDIA OWNERSHIP IN LOS ANGELES
[SOURCE: Federal Communications Commission]
We've known where and when the FCC media=20
ownership hearing would take place; now there's=20
information on "who." The Creative=20
Community/Independent Programming panel at USC=20
will include: Stephen Cannell, Member, Caucus of=20
Television Producers, Writers & Directors; Taylor=20
Hackford, Third Vice President, Directors Guild=20
of America; Anne-Marie Johnson, National First=20
Vice President, Screen Actors Guild; Patric=20
Verrone, President, Writers Guild of America,=20
West; Mona Mangan, Executive Director, Writers=20
Guild of America, East; Marshall Herskovitz,=20
President, Producers Guild of America; Mike=20
Mills, Bassist for R.E.M., Member, Recording=20
Artists' Coalition; John Connolly, President,=20
American Federation of Television and Radio=20
Artists; Brandon Burgess, CEO, Ion Media=20
Networks; Tim Winter, President-Elect, Parents=20
Television Council. The Los Angeles Market=20
Overview/LA Case Study panel will include: Bruce=20
Owen, Stanford University on behalf of CBS, FOX=20
and NBC networks; Dr. Frank Wright, President and=20
CEO, National Religious Broadcasters; Ted=20
Lempert, President, Children Now; Julian Do,=20
Co-Director, New America Media; Paula Madison;=20
President and General Manager of KNBC, Executive=20
Vice President of Diversity, NBC Universal;=20
Vincent Malcolm, Vice President and General=20
Manager, KTLA, Tribune Broadcasting Company; Jim=20
C. Joyce, Sector Vice President, NABET/CWA; Jorge=20
Delgado, President and General Manager, KMEX-TV=20
and KFTR-TV (Univision); Dr. S. Huw Anwyl -=20
Senior Minister of Shepard of the Hills Church,=20
Laguna Niguel, CA; Dr. Mark Cooper, Director of=20
Research, Consumer Federation of America; Sydney=20
Levy, Program Director, Media Alliance; Moctesuma Esparza, CEO, Maya Cinema=
s.
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-267697A1.doc

BROADCASTING

TV: MORE BANG FOR THE BUCKS
[SOURCE: Los Angeles Times, AUTHOR: Meg James]
This fall's freshman class of prime-time network=20
shows is shaping up to be the most expensive=20
ever. A full season of a television drama now=20
costs as much to make as the average feature=20
film. More than half of the 14 drama pilots=20
produced this fall for the major networks =97 CBS,=20
ABC, NBC and Fox =97 cost $6 million or more.=20
That's up 50% from just two years ago. The price=20
tag for a full season is more than $62 million on=20
average, a jump from about $45 million in 2004.=20
The big budgets could be a boon for viewers,=20
considering the level of creativity, talent and=20
special effects this money can buy. Storytelling=20
devices once reserved for the cinema have come en=20
masse to the small screen. Unfortunately for the=20
TV industry, however, viewers this fall have=20
given a warmer embrace to familiar shows such as=20
"CSI: New York," "ER" and "Dancing With the=20
Stars" than to costly newcomers such as NBC's=20
"Kidnapped" and ABC's "Six Degrees." That makes=20
executives nervous. The networks are not paying=20
the program suppliers much more than in previous=20
years for the rights to air these shows.=20
Advertising dollars that underwrite the networks'=20
costs for these programs are slowing, not=20
growing. And new media outlets, such as Internet=20
downloads, may not pay big dividends for years to come.
http://www.latimes.com/business/printedition/la-fi-falltv2oct02,1,753359...
tory?coll=3Dla-headlines-pe-business
(requires registration)

AD BUYERS EYE CLEAR CHANNEL'S 'BLINK' SPOTS
[SOURCE: Wall Street Journal, AUTHOR: Suzanne=20
Vranica suzanne.vranica( at )wsj.com ]
Commercials lasting only five seconds -- and some=20
two-second ads called "blinks" -- are in demand=20
by marketers. Clear Channel stations are also=20
offering blinks that are just one-second long,=20
but they haven't found any takers -- yet. Clear=20
Channel started offering the super-short spots in=20
hopes of bringing in more ad dollars, part of a=20
broader effort to revive ad sales in an industry=20
hurt by competition from other media and listener=20
fatigue with commercial overload. CBS Corp.'s CBS=20
Radio, the No. 2 radio company after Clear=20
Channel, has sold five-second ads as well,=20
including some this year for TV networks. Unlike=20
traditional radio ads, which tend to run 60=20
seconds in minutes-long commercial breaks, the=20
minimessages can be tucked in between individual=20
songs in a series. Marketers hope that=20
positioning gives them a better chance of being=20
heard, since listeners often change channels when=20
a commercial break starts. Of course, the brevity=20
of the spots also makes them easier to miss.=20
Clear Channel is pricing the five-second spots,=20
called "adlets," at 18% to 21% of a standard=20
60-second ad, which in a top-10 station in a=20
major market can go for about $800, media buyers=20
say. Two-second ads cost even less -- 10% of a=20
60-second ad, or roughly $80. So far, Clear=20
Channel has sold adlets to about 12 national=20
advertisers, along with a slew of local marketers.
http://online.wsj.com/article/SB115975041919379557.html?mod=3Dtodays_us_...
ketplace)
(requires subscription)

QUICKLY

REGULATORS WANT RURAL FREQUENCY
[SOURCE: Associated Press]
On Friday the North Dakota Public Service=20
Commission, along with regulators from Vermont,=20
Nebraska and Maine, submitted comments to the FCC=20
asking that the agency's rules encourage use of=20
the spectrum in rural areas. The 700 megahertz=20
spectrum, now used mostly for broadcast=20
television, will no longer be needed for that use=20
once television stations finish switching to=20
digital broadcasting in 2009. The FCC is=20
soliciting comments about how to use the=20
spectrum, which must be auctioned within 16 months.
http://www.bismarcktribune.com/articles/2006/09/30/news/state/121567.txt

NCTA ASKS FOR SET-TOP WAIVER
[SOURCE: Broadband-Today.com]
The National Cable & Telecommunications=20
Association has formally requested an extension=20
on an upcoming mandate that would prohibit cable=20
operators from deploying digital set-tops with=20
embedded security as of July 1, 2007. In a filing=20
made to the Federal Communications Commission,=20
cable's top lobbying arm reiterated the high=20
costs of the current "fix" to separable security=20
-- the CableCARD -- and how it will adversely=20
affect both cable operators and consumers if=20
cable companies are forced to support that=20
technology in devices bought at retail as well as=20
those leased to customers. The cable industry,=20
the filing noted, has estimated the=20
re-engineering required to enable leased devices=20
to work with CableCARDs would add $72 to $93 per=20
box, and direct costs to the cable industry of=20
more than $500 million per year. Some costs would=20
also have to be leveled on consumers, who would=20
end up paying between $2 to $3 more in monthly=20
lease charges for leased devices that use=20
CableCARDs to authorize services. To date, cable=20
operators have deployed more than 170,000 CableCARDs.
http://www.broadband-today.com/article/CA6375658.html?nid=3D2908
--------------------------------------------------------------
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.
--------------------------------------------------------------