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NEWS AT CONGRESS
Congress Bustles With Busywork
Poll: Americans Favor Video Choice Over Net Neutrality
State AGs speak out against federal pre-emption in telecom-reform bill
Justice Dept. defends mandatory Web-labeling bill

NEWS AT THE FCC
Sen Boxer Produces Another Unpublished FCC Report
FCC Extends Media Ownership Comment Period
Airwaves sale grosses $13.9 billion
Unusual FCC proceeding concerning the future of=20
the white spaces in the FM radio band

MEDIA OWNERSHIP
Tribune CEO Defends Management of L.A. Times
Televisa Ends Attempt to Take Over Univision

QUICKLY -- Google creates PAC; Online music=20
business model questioned; Advocacy Group Decries=20
Kaitz for MTV Diversity Award; Now Playing on=20
Newspaper Web Sites: Campaign '06 TV Spots; More=20
Teens Support First Amendment Protection for Media

NEWS AT CONGRESS

CONGRESS BUSTLES WITH BUSYWORK
[SOURCE: Washington Post, AUTHOR: Jonathan Weisman and Shailagh Murray]
With 10 days left before the scheduled Sept. 29=20
recess, Congress's much-trumpeted national=20
security agenda is becalmed and awaiting a stiff=20
wind to get it to port. This week, there doesn't=20
even seem to be a gentle breeze on the horizon.=20
Senate Majority Leader Bill Frist (R-TN) had=20
hoped to begin work on legislation authorizing=20
military commissions to try terrorism suspects or=20
a bill on President Bush's warrantless=20
wiretapping program. The surveillance bill=20
negotiated by Senate Judiciary Committee Chairman=20
Arlen Specter (R-Pa.) and Vice President Cheney=20
is ready for consideration, but with at least=20
half a dozen Republicans expressing reservations,=20
it may not have the votes for passage.
http://www.washingtonpost.com/wp-dyn/content/article/2006/09/18/AR200609...
1119.html
(requires registration)

BIPARTISAN POLL SHOWS THE MAJORITY OF AMERICANS=20
FAVOR VIDEO CHOICE OVER ONEROUS NET NEUTRALITY REGULATIONS
[SOURCE: US Senate Commerce Committee press release]
A new poll released Monday finds that an=20
overwhelming majority of American voters favor=20
video choice over onerous =93Net Neutrality=94=20
regulations. Conducted by The Glover Park Group=20
and Public Opinion Strategies LLC, the=20
nation-wide survey of 800 registered voters also=20
finds that 90 percent of Americans believe it is=20
important to have a choice of service providers=20
for cable TV. The survey found that very few=20
registered voters are familiar with the issue of=20
network neutrality. In some regions of the=20
country, only 5 percent of likely voters had even=20
heard of =93Net Neutrality.=94 The survey found broad=20
support for a =93Consumer Internet Bill of Rights,=94=20
like that contained in the Senate=92s=20
communications bill. The provision contained in=20
the Senate bill prevents Internet service=20
providers from blocking access to competitors or=20
degrading a consumer=92s broadband=20
service. According to the survey, when presented=20
with a choice between video choice and additional=20
net neutrality legislation, an overwhelming=20
majority of voters supported video choice.
http://commerce.senate.gov/public/index.cfm?FuseAction=3DPressReleases.D...
il&PressRelease_id=3D248662&Month=3D9&Year=3D2006
* Industry Shill Pollling Coming Out on Net Neutrality
http://www.mydd.com/story/2006/9/18/173929/838
* Stevens Embraces Telephone Poll
http://blogs.wsj.com/washwire/2006/09/18/stevens-embraces-telephone-poll/

STATE AGs SPEAK OUT AGAINST FEDERAL PRE-EMPTION IN TELECOM-REFORM BILL
[SOURCE: RCRWirelessNews, AUTHOR: Jeffrey Silva]
Forty one state attorneys general asked Congress=20
to strip from telecom-reform legislation=20
provisions that would pre-empt state regulation=20
of wireless and Voice over Internet Protocol=20
services, pointing to mounting complaints and=20
lack of enforcement muscle at the Federal=20
Communications Commission. =93This unwarranted=20
action pre-empts states from taking proactive=20
action to prevent industry practices which have=20
caused substantial harm to our citizens, and with=20
no effective federal protection to fill the void=20
that will be created via this pre-emption,=94=20
stated officials who signed onto a Sept. 14=20
National Association of Attorneys General letter=20
to Congress. The state AGs said telecom act=20
pre-emption could hinder efforts=97such as the 2004=20
settlement agreements among 32 state attorneys=20
general and three national wireless carriers and=20
California=92s $12 million fine against Cingular=20
Wireless L.L.C.=97to safeguard consumers and punish abuses.
http://rcrnews.com/news.cms?newsId=3D27324
See the letter:
http://www.naag.org/news/pdf/20060915.WirelessPreemption.pdf

JUSTICE DEPT DEFENDS MANDATORY WEB-LABELING
[SOURCE: C-Net|News.com, AUTHOR: Anne Broache]
The Department of Justice has stepped up its=20
defense of a proposal to imprison Web site=20
operators who don't label pages containing=20
sexually explicit material. The idea, outlined in=20
an April speech by Attorney General Alberto=20
Gonzales, is approaching a vote in Congress. Even=20
though there have been no hearings, the=20
legislation has been attached to two separate=20
measures -- the Senate communications bill and a=20
bill to fund large portions of the federal=20
government including the State Department--that=20
are likely to be considered by the full Senate=20
this fall. The proposed restrictions are no=20
different from requiring multipurpose stores like=20
7-Eleven to shield pornographic magazines with=20
so-called blinder racks, Larry Rothenberg, an=20
attorney in the Justice Department's Office of=20
Legal Policy, said at a panel discussion here=20
hosted by the Internet Caucus Advisory Committee=20
on Friday. Under the proposal, all commercial Web=20
site operators would have to place "identifiable=20
marks or notices," to be determined by the=20
Federal Trade Commission, in the code of each=20
page that contains "sexually explicit material"=20
as defined by existing U.S. criminal statute. The=20
idea, supporters maintain, is to make it easier=20
for Web-filtering programs to pick up=20
objectionable sites. "There's no way to avoid=20
vagueness, no way to avoid overbreadth, and, more=20
important, no way to avoid chilling free speech,"=20
said Leslie Harris, executive director of the=20
Center for Democracy and Technology.
http://news.com.com/Justice+Dept.+defends+mandatory+Web+labeling+bill/21...
1028_3-6116997.html?tag=3Dhtml.alert

NEWS AT THE FCC

SEN BOXER PRODUCES ANOTHER UNPUBLISHED FCC REPORT
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
Senator Barbara Boxer (D-CA) has written FCC=20
Chairman Kevin Martin about yet another report=20
she has a copy of, and saying she wants a full=20
investigation into whether the FCC is suppressing=20
information for political reasons. This time it=20
is a 2003 radio ownership report. "I have now=20
received a copy of the Commission's draft 2003=20
'Review of the Radio Industry,'" she wrote. "The=20
report found, among other things, that while=20
there was a 5.9 percent increase in the number of=20
radio stations in the country between March 1996=20
and March 2003, there was a 35 percent decrease=20
in the number of radio owners.The report also=20
found that Clear Channel Communications, the=20
largest radio group owner, went from owning 62=20
stations in 1996, to 1,233 in 2003. "For reasons=20
I do not understand, this report was never=20
finalized even though the FCC had released=20
similar reports in 2002, September 2001, January=20
2001, and 1998," she wrote Martin. "Moreover, the=20
Commission has not released a "Review of the=20
Radio Industry" report since 2002.This is in=20
spite of the fact that this information would be=20
highly relevant to the Commission=92s ongoing=20
proceedings on localism and media ownership."=20
"This is the second report in a week that I have=20
received that appears to have been shelved by=20
officials within the FCC," she said, "and I am=20
growing more and more concerned at these=20
developments." Boxer's office had not returned a=20
call about where she got the report, but she told=20
Chairman Martin what she wanted him to do with=20
it. She called on him to revise and release the=20
report and make it a part of the ongoing=20
ownership rule review. "In light of this new=20
discovery, I will ask the Inspector General of=20
the FCC to thoroughly investigate not only the=20
draft 2003 =93Review of the Radio Industry=94 and the=20
2004 localism study, but also to examine whether=20
it was then or is now the practice of the FCC to=20
suppress facts that are contrary to a desired outcome."
http://www.broadcastingcable.com/article/CA6373194.html
* Second Secret Study Surfaces at FCC
http://www.freepress.net/press/release.php?id=3D166
* Shelving of Study by FCC Is Alleged
http://www.latimes.com/business/printedition/la-fi-briefs19.6sep19,1,147...
2.story?coll=3Dla-headlines-pe-business

FCC EXTENDS MEDIA OWNERSHIP COMMENT PERIOD
[SOURCE: Federal Communications Commission]
The new deadlines for filing comments in the=20
FCC's media ownership proceeding are October 23,=20
2006 for comments and December 21, 2006 for reply=20
comments. The FCC decided: "We believe that the=20
public interest and our goal of assembling a full=20
record in this proceeding would be best served by=20
granting an extension of the comment and reply=20
comment filing deadlines so that parties may have=20
sufficient time to conduct studies and compile=20
data that will inform our decision in this=20
proceeding." Free Press and ION Media Networks=20
had asked for extensions, saying they need=20
additional time to complete research and analysis=20
and to compile data necessary to fully address=20
the complex issues raised in the proceeding. In=20
addition, Free Press suggested that an extension=20
of time would allow parties to respond to issues=20
raised at the Commission's upcoming hearing on=20
media ownership, scheduled to take place on=20
October 3, 2006, in Los Angeles, California.
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DA-06-1663A1.doc
* FCC Extends Deadline For Ownership Comments
http://www.broadcastingcable.com/article/CA6373196.html?display=3DBreaki...
News

AIRWAVES SALE GROSSES $13.9 BILLION
[SOURCE: Reuters, AUTHOR: Jeremy Pelofsky]
The Federal Communications Commission's sale of=20
airwaves for advanced wireless services grossed a=20
record $13.9 billion when it ended on Monday, and=20
spectrum-hungry wireless carrier T-Mobile USA,=20
Verizon Wireless and a group of cable companies=20
were the highest bidders. The U.S. Treasury will=20
net about $13.7 billion from the FCC sale because=20
the agency gives discounts of up to 25 percent to=20
smaller companies to encourage their=20
participation. Payments will likely be due next=20
month. The winning companies are expected to use=20
the airwaves to expand and improve existing voice=20
services as well as expand their high-speed Internet and video services.
http://today.reuters.com/news/newsArticle.aspx?type=3DtechnologyNews&sto...
D=3D2006-09-18T222400Z_01_WAT006258_RTRUKOC_0_US-TELECOMS-WIRELESS-AUCTION.=
xml&archived=3DFalse
* FCC'S ADVANCED WIRELESS SERVICES (AWS) SPECTRUM AUCTION CONCLUDES
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-267467A1.doc
* Wireless Auction Ends With $13.9 Billion Dollar Payday
http://www.broadcastingcable.com/article/CA6373206.html?display=3DBreaki...
News
* T-Mobile Leads Wireless Auction
http://www.multichannel.com/article/CA6373210.html?display=3DBreaking+News
* U.S. Closes Lucrative Airwaves Auction
http://www.nytimes.com/2006/09/19/technology/19spectrum.html
* FCC License Auction Gets Big Bids
http://online.wsj.com/article/SB115862920521567087.html?mod=3Dtodays_us_...
ketplace
* FCC Wireless Auction Could Open Up Airwaves
http://www.washingtonpost.com/wp-dyn/content/article/2006/09/18/AR200609...
1328.html

A MOST UNUSUAL FCC PROCEEDING CONCERNING THE=20
FUTURE OF THE WHITE SPACES IN THE FM RADIO BAND
[SOURCE: Truth, Justice and Telecom Policy, AUTHOR: JH Snider]
[Commentary] The Rail Network, with the apparent=20
backing of many major mass transit systems=20
throughout the United States, has petitioned the=20
FCC to enhance the Part 15 (unlicensed) rules for=20
operation within subways. Given today=92s political=20
environment, the Rail Network=92s most compelling=20
public interest argument for its proposed Part 15=20
modification is public safety. Rail passengers=20
currently have minimal access to radio broadcast=20
news in the event of a natural disaster or=20
terrorist attack. The attacks on mass transit in=20
London and Spain are specifically mentioned.=20
Other arguments include fostering mass transit=20
while not causing harm to licensed FM facilities.=20
The day-to-day programming Rail Networks plans to=20
put on such spectrum remains unclear and may=20
amount to little more than the type of=20
programming available in many doctors=92 offices or=20
airport lounges. Reply comments on the Rail=20
Networks proposal are due October 3.
http://quixote.blogs.com/telecompolicy/2006/09/a_most_unusual_.html

MEDIA OWNERSHIP

TRIBUNE CEO DEFENDS MANAGEMENT OF LA TIMES
[SOURCE: Wall Street Journal, AUTHOR: Sarah Ellison sarah.ellison( at )wsj.com]
Tribune Co. CEO Dennis FitzSimons, responding to=20
a letter from some of the most powerful civic=20
leaders in Los Angeles, defended the company's=20
management of the Los Angeles Times and gave no=20
indication the company was willing to consider=20
the newspaper's sale. Mr. FitzSimons's response=20
comes amid rising tension between Tribune=20
management and the newspaper's editor and=20
publisher, both of whom have resisted company=20
pressure to make further layoffs. The standoff=20
could force the departure of Dean Baquet, editor=20
and Jeffrey M. Johnson, publisher. Tribune has=20
several reasons not to sell the newspaper. Chief=20
among them is that a sale could result in a big=20
tax hit. The Times contributes a significant=20
portion of revenue and content to Tribune's=20
newspaper group, and it is a major contributor to=20
the company's Careerbuilder Web site, which is=20
also owned by McClatchy Co. and Gannett Co. The=20
Times is the fourth-largest newspaper in the=20
country by circulation and makes up nearly a=20
quarter of Tribune's publishing division, which=20
includes the Chicago Tribune and New York's=20
Newsday. Tribune's newspapers account for about=20
three-quarters of the company's revenue.
http://online.wsj.com/article/SB115863443849467180.html?mod=3Dtodays_us_...
e_one
(requires subscription)
* The Times, Tribune and the City
http://www.latimes.com/news/printedition/opinion/la-oe-letterprecede19se...
,1,7427833.story?coll=3Dla-news-comment
* Tribune Defends Its Ownership of The Times
http://www.latimes.com/business/printedition/la-fi-tribune19sep19,1,7918...
.story?coll=3Dla-headlines-pe-business
http://www.latimes.com/business/printedition/la-fi-tribune19sep19_pdf,1,...
8797.acrobat?coll=3Dla-headlines-pe-business

TELEVISA ENDS ATTEMPT TO TAKE OVER UNIVISION
[SOURCE: Los Angeles Times, AUTHOR: Meg James]
Grupo Televisa said it would not attempt to put=20
together an 11th-hour bid to buy Univision=20
Communications Inc., clearing the way for a Sept.=20
27 vote by shareholders on whether to sell the=20
company for $12.3 billion to a consortium of private investors.
http://www.latimes.com/business/printedition/la-fi-briefs19.4sep19,1,684...
.story?coll=3Dla-headlines-pe-business
(requires registration)

QUICKLY

GOOGLE WILL FLEX POLITICAL MUSCLES
[SOURCE: San Francisco Chronicle, AUTHOR: Verne Kopytoff & John Wildermuth]
Under fire on Capitol Hill, Google has boosted=20
its political muscle by creating its first=20
political action committee while taking steps to=20
reach out to Republicans. Google filed paperwork=20
Thursday to register its political action=20
committee, Google NetPAC, with the Federal=20
Election Commission. The company intends to use=20
the committee "to support candidates who promote=20
an open and free Internet for our users,"=20
according to Alan Davidson, Google's Washington policy counsel.
http://www.sfgate.com/cgi-bin/article.cgi?f=3D/c/a/2006/09/16/BUGORL6MNV...
TL&feed=3Drss.business

ONLINE MUSIC BUSINESS MODEL QUESTIONED
[SOURCE: Reuters, AUTHOR: Jeffrey Goldfarb]
Only one in five European iPod owners regularly=20
buys songs online, new research shows, a signal=20
that the music industry will need to rely more=20
heavily on other ways to recover revenue lost to=20
piracy and illegal downloading. Europe's digital=20
music market is expected to double to 385 million=20
euros ($487.1 million) in 2006 from a year ago,=20
Jupiter Research said on Monday, but iPod owners=20
on average buy only 20 tracks a year from Apple=20
Computer Inc.'s market-leading iTunes music=20
store. About 83 percent of iPod owners throughout=20
Europe do not regularly buy digital music, the=20
study found, although they are more apt to do so=20
than owners of other portable media devices. "The=20
model isn't broken, there's just lots of room for=20
improvement," Jupiter analyst Mark Mulligan said.=20
"Digital music is really underperforming its=20
potential." The study found that 30 percent of=20
iPod owners illegally swap songs using=20
file-sharing networks and another 23 percent=20
listen to Web-based audio files for free legally.
http://today.reuters.com/news/newsArticle.aspx?type=3DtechnologyNews&sto...
D=3D2006-09-18T184252Z_01_L18670722_RTRUKOC_0_US-MEDIA-DOWNLOADS-EUROPE.xml=
&archived=3DFalse

ADVOCACY GROUP DECRIES KAITZ FOR MTV DIVERSITY AWARD
[SOURCE: Multichannel News, AUTHOR: R. Thomas Umstead]
The Walter Kaitz Foundation may think MTV=20
Networks is a diversity champion, but at least=20
one group isn't convinced, and it is circulating=20
a petition claiming that the programmer=92s fare is=20
insensitive to people of color. Industry Ears --=20
a self-described think-tank group focused on=20
media=92s impact on children and communities of=20
color -- garnered more than 330 signatures on a=20
Web site=20
(www.thepetitionsite.com/takeaction/526905262)=20
denouncing Kaitz=92s decision to award MTVN with=20
its Diversity Champions Award during its annual=20
fund-raising dinner last Wednesday.
http://www.multichannel.com/article/CA6373195.html?display=3DBreaking+News

NOW PLAYING ON NEWSPAPER SITES: CAMPAIGN '06 TV SPOTS
[SOURCE: Editor&Publisher, AUTHOR: Joe Strupp]
With newspapers expanding political coverage on=20
their Web sites this year more than ever before,=20
including wide use of blogs, among the most=20
effective - and entertaining -- uses of their=20
Internet editions have been links to political=20
ads. Although major dailies from The New York=20
Times to The Washington Post have been analyzing=20
such ads for effectiveness and factual honesty=20
for years, only recently have the moving images=20
themselves been placed online by the papers. At=20
least three dailies, the Times, the Post and Los=20
Angeles Times are offering readers a chance to=20
view the ads, most from candidates nationwide, via their Web pages.
http://www.editorandpublisher.com/eandp/news/article_display.jsp?vnu_con...
t_id=3D1003123734

MORE TEENS SUPPORT FIRST AMENDMENT PROTECTION FOR MEDIA
[SOURCE: Editor&Publisher]
A large-scale survey by the John S. and James L.=20
Knight Foundation has found that while high=20
school students in the U.S. are more=20
knowledgeable about the First Amendment than they=20
were two years ago, they are increasingly divided=20
on whether they think it goes too far in=20
protecting the right to free speech. In general,=20
today's high school students are more likely to=20
take classes that teach about the First Amendment=20
than they were two years ago, and more students=20
now support protections for journalists. Students=20
also increasingly support the right of student=20
publications to report without oversight from=20
school officials. The survey also found, however,=20
that students today also think that the First=20
Amendment guarantees too many rights, and there=20
is a growing polarization between students who=20
support the fundamental principle of the law and those who do not.
http://www.editorandpublisher.com/eandp/news/article_display.jsp?vnu_con...
t_id=3D1003123603
--------------------------------------------------------------
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.
--------------------------------------------------------------