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NEWS FROM THE FCC
FCC Ordered Media Study Destroyed
FCC Creates New Captioning Exemption?
FCC chief sees Hurdles to Satellite TV Deal
FCC's Martin Talks To Wall Street
Martin: Expanded Basic a Tying Arrangement
FCC Wireless Auction Nears End

LEGISLATION
"Internet Watch List" Identifies Dangerous Legislation
Senate Passes Impact Study Bill
Schwarzenegger to Sign Hang-Up-and-Drive Bill

BROADCASTING
Radio Changing Its Tune
Viewers =91would pay more for BBC=92

QUICKLY -- Political Ad Spending Could Hit $1.6=20
Billion This Year; U.S. Paid Many Journalists;=20
China Defends New Curbs on the Sale of Wire News;=20
LA Times Editor Defies Owner=92s Call for Job=20
Cuts; Murdoch May Make Malone an Offer; Cells on a Plane

NEWS FROM THE FCC

LAWYER: FCC ORDERED MEDIA STUDY DESTROYED
[SOURCE: Associated Press, AUTHOR: John Dunbar]
Former FCC staffer Adam Candeub, now a law=20
professor at Michigan State University, says=20
senior managers at the Federal Communications=20
Commission ordered that "every last piece" of a=20
draft study that suggested greater concentration=20
of media ownership would hurt local TV news=20
coverage be destroyed. "The whole project was=20
just stopped, end of discussion,'' he said.=20
Candeub was a lawyer in the FCC's Media Bureau at=20
the time the report was written and communicated=20
frequently with its authors, he said. The report,=20
written in 2004, came to light during the Senate=20
confirmation hearing for FCC Chairman Kevin=20
Martin. Sen. Barbara Boxer (D-CA) received a copy=20
of the report ''indirectly from someone within=20
the FCC who believed the information should be=20
made public,'' according to Boxer spokeswoman=20
Natalie Ravitz. In a letter sent to Martin=20
Wednesday, Boxer said she was ''dismayed that=20
this report, which was done at taxpayer expense=20
more than two years ago, and which concluded that=20
localism is beneficial to the public, was shoved=20
in a drawer.'' The report, written by two=20
economists in the FCC's Media Bureau, analyzed a=20
database of 4,078 individual news stories=20
broadcast in 1998. The broadcasts were obtained=20
from Danilo Yanich, a professor and researcher at=20
the University of Delaware, and were originally=20
gathered by the Pew Foundation's Project for=20
Excellence in Journalism. The analysis showed=20
local ownership of television stations adds=20
almost five and one-half minutes of total news to=20
broadcasts and more than three minutes of=20
''on-location'' news. The conclusion is at odds=20
with FCC arguments made when it voted in 2003 to=20
increase the number of television stations a=20
company could own in a single market. It was part=20
of a broader decision liberalizing ownership=20
rules. The authors of the report, Keith Brown and=20
Peter Alexander, both declined to comment.
http://www.tvnewsday.com/articles/2006/09/14/daily.5/
* Officials Ordered FCC Report Destroyed, Says Ex-Staffer
http://www.broadcastingcable.com/article/CA6372324.html
* Probe Called for in FCC's Quashing of Local News Study
http://www.tvweek.com/news.cms?newsId=3D10757
* FCC Lawyer Says TV Study Was Hushed
http://www.latimes.com/business/printedition/la-fi-fcc15sep15,1,6351522....
ry?coll=3Dla-headlines-pe-business
* In a USA Today Op Ed in 2003 on the FCC=92s media=20
ownership proceeding, then-Chairman Powell=20
accused opponents of =93substituting personal=20
ideology for and opinion for the facts.=94=20
According to the Associated Press, however, when=20
a study Powell ordered to prove deregulation did=20
not hurt local news coverage proved the opposite,=20
Powell ordered the study not merely suppressed,=20
but destroyed. =93It appears that it was Michael=20
Powell, not the public, who preferred to make=20
decisions based on =91personal ideology,=92=94 said=20
Harold Feld, Senior Vice President, Media Access Project.
http://www.mediaaccess.org/press/Powell%20Statement.pdf
* MAP, Free Press, Consumers Union, Consumer=20
Federation of America letter to FCC Chairman Martin:
"We urge you to immediately seek an independent=20
investigation, through the Office of the=20
Inspector General, to determine the circumstances=20
under which the public was denied access to this=20
important, taxpayer-funded research, the parties=20
involved and the processes that may have allowed=20
any record of the report=92s existence to be destroyed."
http://www.mediaaccess.org/filings/2006%20-%200914%20Ltr%20FCC%20-%20Loc...
20News%20Study.pdf
* Do Local Owners Deliver More Localism?
http://www.freepress.net/docs/fcclocalnews.pdf

FCC CREATES NEW CAPTIONING EXEMPTION?
[SOURCE: Benton Foundation]
On Tuesday, the FCC released a decision by Monica=20
Desai, Chief of the FCC Consumer and Governmental=20
Affairs Bureau, granting two separate petitions=20
for exemption from the closed captioning=20
requirements for video programming, filed by two=20
video programming owners - Anglers for Christ=20
Ministries, Inc. (Anglers) and New Beginning=20
Ministries (New Beginning) because A) both of the=20
organizations here are non-profit and B) the=20
mandated closed captioning would cause=20
"significant difficulties for these entities."=20
Chief Desai writes, "For these reasons, we note=20
that, in the future, when considering an=20
exemption petition filed by a non-profit=20
organization that does not receive compensation=20
from video programming distributors from the=20
airing of its programming, and that, in the=20
absence of an exemption, may terminate or=20
substantially curtail its programming, or curtail=20
other activities important to its mission, we=20
will be inclined favorably to grant such a=20
petition because, as the petitions of Anglers and=20
New Beginning demonstrate, this confluence of=20
factors strongly suggests that mandated closed=20
captioning would pose an undue burden on such a=20
petitioner." An additional exemption criteria=20
seems to have been added by the FCC in this order=20
-- that not only is an exemption allowed if it=20
poses an undue burden or if it would mean that a=20
program might not be able to be produced, but=20
added a new provision that has never been=20
argued or addressed in any public forum - that=20
if the caption mandate may force an organization=20
to "curtail other activities important to its=20
mission," it will be granted a PERMANENT AND=20
PRE-EMPTIVE exemption from the captioning rules.=20
This could as easily be interpreted to apply to=20
public television stations as religious=20
broadcasters. Also a major issue is the=20
fact that more than 500 letters of exemption=20
from the captioning rules have been sent out to=20
religious broadcasters this week - and those=20
letters will not be available for review on the=20
web, but instead will have to be reviewed at the=20
FCC's document room in person. This is all=20
somewhat ironic given that Chairman Martin,=20
during his renomination hearing on Tuesday, told=20
the Senate: "Accessing communication services is=20
vital to the ability of the individuals with=20
disabilities to participate fully in=20
society. With the passage of the Americans with=20
Disabilities Act in 1990, the Commission was=20
directed to ensure that hearing or speech=20
disabilities not pose a barrier to participating=20
in today's communication revolution."
* See Petitions for Exemption from Closed=20
Captioning Requirements (CGB-CC-0005 & 0007)
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DA-06-1802A1.doc

FCC CHIEF SEES HURDLE TO SATELLITE TV DEAL
[SOURCE: Reuters, AUTHOR: Jeremy Pelofsky]
Television service being launched by telephone=20
companies has not yet offered sufficient=20
competition to allow consolidation in the=20
satellite television industry, Federal=20
Communications Commission Chairman Kevin Martin=20
said on Thursday. Speculation has swirled in=20
recent weeks that DirecTV and EchoStar might try=20
to merge again. The two companies tried to=20
combine in 2002 but were turned down by the FCC=20
and have denied the latest rumors. Chairman=20
Martin also tempered hopes by some in the=20
industry that the FCC would ease ownership caps=20
on cable. The cap, limiting companies to 30=20
percent of the market, has been on hold for=20
several years after a court struck it down and=20
sent it back to the agency to be reworked.=20
Chairman Martin said that previous arguments to=20
raise the cap were based on giving cable=20
companies additional leverage to negotiate lower=20
prices for programming that would in turn cut=20
prices for consumers, but he noted that had not=20
occurred. "I think it will be very difficult to=20
justify any raising of the cap at this point=20
because we're not seeing any of the benefits of=20
the negotiations potentially passing through to consumers," he said.
http://today.reuters.com/news/newsArticle.aspx?type=3DtechnologyNews&sto...
D=3D2006-09-14T220129Z_01_N14293061_RTRUKOC_0_US-MEDIA-FCC.xml&archived=3DF=
alse

FCC'S MARTIN TALKS TO WALL STREET
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
Participating in a Cable, Telecom & Media=20
briefing, part of the UBS Analyst Access Global=20
Conference Call series, FCC Chairman Kevin Martin=20
said: 1) he hopes to wrap up an open proceeding=20
on video franchise reform by the end of the year,=20
2) he expects the wireless spectrum auction=20
currently winding down will raise about $14=20
billion for the US Treasury, 3) the Commission is=20
aiming to complete the review of the=20
AT&T-BellSouth merger by mid-October, 4) he will=20
try to lift a ban on newspaper/broadcast station=20
cross-ownership and could tackle the issue=20
separately if there is no consensus on an omnibus=20
rewrite of media ownership rules and 5) he sang=20
the praises of a la carte pricing of cable TV.
http://www.broadcastingcable.com/article/CA6372363.html?display=3DBreaki...
News

MARTIN: EXPANDED BASIC CABLE A TYING ARRANGEMENT
[SOURCE: Multichannel News, AUTHOR: Ted Hearn]
Federal Communications Commission Chairman Kevin=20
Martin said Thursday that cable=92s expanded-basic=20
tier is a =93tying=94 arrangement because consumers=20
are denied refunds for channels they either block=20
or refuse to watch. Chairman Martin, who supports=20
the a la carte sale of cable channels, told Wall=20
Street analysts cable's most popular programming=20
tier is not an example of bundling in an economic=20
sense because none of the channels is available=20
for sale outside of the tier. Instead, he added,=20
expanded basic is an example of commercial tying.=20
=93Tying is taking things that are sold separately=20
and stopping selling them separately and only=20
selling them together in a bundle,=94 Martin said.=20
=93Tying is what=92s occurring in the cable industry,=20
and that=92s different from just bundling.=94
http://www.multichannel.com/article/CA6372384.html?display=3DBreaking+News

FCC WIRELESS AUCTION NEARS END
[SOURCE: Reuters, AUTHOR: Jeremy Pelofsky]
The Federal Communications Commission auction of=20
airwaves for advanced wireless services was=20
winding down on Thursday with few new bids=20
offered and spectrum-hungry T-Mobile USA in the=20
lead. T-Mobile, the No. 4 U.S. wireless carrier=20
and owned by Deutsche Telekom, has provisionally=20
won 119 licenses in major markets like New York=20
City and Chicago with offers of almost $4.2=20
billion after 136 rounds. So far the auction has=20
grossed almost $13.9 billion, but would net about=20
$13.7 billion because of discounts offered to=20
entrepreneurial bidders. Analysts had expected=20
the sale to raise from $8 billion to $15 billion.
http://today.reuters.com/news/articleinvesting.aspx?view=3DCN&storyID=3D...
6-09-14T164604Z_01_N14259434_RTRIDST_0_TELECOMS-WIRELESS-AUCTION.XML&rpc=3D=
66&type=3Dqcna
* Wireless carriers snap up federal airwave licenses
http://www.usatoday.com/printedition/money/20060915/2b_spectrum15.art.htm

LEGISLATION

"INTERNET WATCH LIST" IDENTIFIES DANGEROUS LEGISLATION
[SOURCE: Center for Democracy & Technology]
As Congress mounts its final push before the=20
midterm elections, a number of bills that=20
threaten the bedrock of Internet privacy and=20
civil liberties could either come up for votes or=20
worm their way into larger legislative packages=20
that end up being rushed into law. The Center for=20
Democracy & Technology (CDT) issued its "Internet=20
Watch List," which contains nine legislative=20
efforts that should not be allowed to succeed in=20
the so-called "silly season" at the end of the=20
109th Congress. In the coming weeks, CDT will=20
urge lawmakers, journalists and the online public=20
to keep close watch on these legislative efforts=20
to ensure that this collection of bad ideas=20
doesn't become a collection of bad laws. Note #6=20
on the list: "Telecom Bill Without Internet Neutrality."
Internet Watch List: http://www.cdt.org/legislation/2006watchlist.php
Press Release: http://www.cdt.org/press/20060913press.php
* For more on the pending Telecom Bills, see=20
http://www.benton.org/index.php?q=3Dtracking_legislation

SENATE PASSES IMPACT STUDY BILL
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
The Senate has passed a bill that funds ongoing=20
studies into the effects of the media on child=20
development. The bill, which passed out of=20
committee last March, would look at the impact of=20
television, films, DVD's video games, the=20
Internet and cell phones, was introduced last=20
October by longtime video game critic Senator Joe=20
Lieberman (D-CT) for Senators Hillary Clinton=20
(D-NY), Rick Santorum (R-PA), Sam Brownback=20
(R-KS) and Richard Durbin (D-II). The bill would=20
create a program under the auspices of the=20
Centers For Disease Control to track the media=20
habits of children and impact of the media on=20
their behavioral development, then report the findings to Congress.
http://www.broadcastingcable.com/article/CA6372282?display=3DBreaking+News

GOV TO SIGN HANG-UP-AND-DRIVE BILL
[SOURCE: Los Angeles Times, AUTHOR: Nancy Vogel]
California will become the fourth state in the=20
country to ban motorists from holding cellphones=20
while driving under legislation Gov. Arnold=20
Schwarzenegger announced he will sign into law=20
today. Under the law, which will take effect in=20
July 2008, Californians risk a minimum $20 fine=20
for driving while yakking into a phone =97 unless=20
they are using a headset, speaker phone, ear bud=20
or some other technology that frees both hands=20
while they talk. Drivers in emergency situations would be exempt.
http://www.latimes.com/news/printedition/front/la-me-cell15sep15,1,71334...
story?coll=3Dla-headlines-frontpage
(requires registration)

BROADCASTING

CHANGING ITS TUNE
[SOURCE: New York Times, AUTHOR: Richard Siklos]
While more than 9 out of 10 Americans still=20
listen to traditional radio each week, they are=20
listening less. And the industry is having to=20
confront many challenges including streaming=20
audio, podcasting, iPods and satellite radio. As=20
a result, the prospects of radio companies have=20
dimmed significantly since the late 1990=92s, when=20
broadcast barons were tripping over themselves to=20
buy more stations. Radio revenue growth has=20
stagnated and the number of listeners is=20
dropping. The amount of time people tune into=20
radio over the course of a week has fallen by 14=20
percent over the last decade, according to=20
Arbitron ratings. Over the last three years, the=20
stocks of the five largest publicly traded radio=20
companies are down between 30 percent and 60=20
percent as investors wonder when the industry=20
will bottom out. Now, radio=92s woes have spurred a=20
new wave of deal making. Clear Channel=20
Communications, the nation=92s largest radio=20
operator, is now considering selling some of its=20
1,200 stations in smaller markets after years of=20
acquiring everything in sight, according to=20
industry analysts. The CBS Corporation did the=20
same thing recently and now says it is looking at=20
further station sales. The Walt Disney Company=20
struck a deal this summer to get out of the radio=20
business altogether, and in May, Susquehanna=20
Broadcasting, the nation=92s largest privately held=20
radio group, was sold to another broadcaster. But=20
rewriting the ownership map is just part of=20
radio=92s scramble to find a new groove. In the=20
last year, the industry has moved into overdrive=20
by increasing experimentation with new formats=20
and starting digital initiatives like HD Radio --=20
a nascent format that will allow listeners with=20
special tuners to hear more specialized channels.=20
Radio companies are moving fast into Web=20
businesses that incorporate video and other=20
features that could not have been imagined when=20
commercial radio first appeared nearly nine decades ago.
http://www.nytimes.com/2006/09/15/business/media/15radio.html
(requires registration)

VIEWERS 'WOULD PAY MORE FOR BBC'
[SOURCE: Financial Times, AUTHOR: Andrew=20
Edgecliffe-Johnson and Emiko Terazono]
The BBC=92s hopes of winning an above-inflation=20
licence fee settlement were boosted on Thursday=20
when research commissioned by the Department for=20
Culture, Media and Sport found that the public=20
would pay more than the BBC itself has asked for.=20
Tessa Jowell, secretary of state, will not decide=20
on the level of the BBC=92s funding for the next=20
decade before November and has already indicated=20
that the corporation will not receive the 2.3 per=20
cent real annual increases it has called for=20
above its existing =A33bn annual public funding.=20
However, the research supports growing=20
expectations that the BBC could secure an=20
above-inflation settlement close to the 1.5 per=20
cent real annual increases it has received for=20
the licence period that ends in April.
http://www.ft.com/cms/s/ca109624-442b-11db-8965-0000779e2340.html
(requires subscription)

QUICKLY

POLITICAL AD SPENDING COULD HIT $1.6 BILLION THIS YEAR
[SOURCE: AdAge]
Despite all the media chatter about Howard Dean's=20
digital legacy and the rise of blogs and websites=20
as the new powers of political marketing, local=20
and national broadcast TV will continue to=20
receive the overwhelming bulk of all ad spending=20
during the upcoming primaries and presidential=20
race, according to Evan Tracey, chief operating=20
officer of the Campaign Media Analysis Group at=20
TNS Media Intelligence. Speaking at the=20
Television Bureau of Advertising conference=20
earlier this week, Tracey noted that state and=20
national political marketing strategies remain=20
"married to broadcast television" and that only=20
small slices of candidates' budgets are going to cable or digital platforms.
http://adage.com/article?article_id=3D111843

REPORT: US PAID MANY JOURNALISTS
[SOURCE: Miami Herald, AUTHOR: Casey Woods cwoods( at )MiamiHerald.com]
Nationally and internationally known journalists=20
for English-language newspapers and magazines=20
have ''for many, many years'' received payment=20
from the U.S. government to appear on Voice of=20
America radio programs, El Nuevo Herald reports.=20
Among them have been a nationally syndicated=20
columnist, a former opinion page director for The=20
Washington Times and the Washington bureau chief=20
for the Hartford Courant of Connecticut. The El=20
Nuevo Herald article followed a Miami Herald=20
article published Friday that disclosed that at=20
least 10 South Florida journalists, including=20
three from El Nuevo Herald, have been regularly=20
paid by the U.S. government to participate in=20
programs on Radio and TV Mart=ED. Spokesmen for the=20
Broadcasting Board of Governors, the federal=20
entity that oversees the federal government's=20
television and radio stations, told El Nuevo=20
Herald that such payments did not pose a conflict of interest.
http://www.miami.com/mld/miamiherald/news/local/15513470.htm

CHINA DEFENDS NEW CURBS ON THE SALE OF WIRE NEWS
[SOURCE: New York Times, AUTHOR: Joseph Kahn]
Chinese officials on Thursday promised that new=20
rules restricting the sale of foreign wire=20
service news would not affect press freedoms. But=20
they also strongly defended efforts to control=20
the distribution of financial and economic news=20
inside the country. The New China News Agency,=20
China=92s main government news agency, also known=20
as Xinhua, issued regulations on Sunday that=20
would make it the gatekeeper, and presumably also=20
the revenue collector, for all kinds of reports=20
from news agencies sold in China. The regulations=20
threaten to disrupt a business valued by major=20
Western financial news providers, including=20
Reuters and Bloomberg, at about $100 million a=20
year. Most of the revenue comes from banks and=20
brokerage houses that subscribe to Western news=20
and data services to keep abreast of developments=20
affecting stock, bond and currency markets. Very=20
few news outlets in China subscribe directly to=20
foreign wire services. The news agency=92s attempt=20
to commandeer that business, a repeat of a failed=20
effort it undertook in 1996, raised charges that=20
it sought to use its regulatory authority to enhance its bottom line.
http://www.nytimes.com/2006/09/15/world/asia/15china.html
(requires registration)

LOS ANGELES TIMES EDITOR OPENLY DEFIES OWNER'S CALL FOR JOB CUTS
[SOURCE: New York Times, AUTHOR: Katharine Seelye]
The editor of The Los Angeles Times appears to be=20
in a showdown with the paper=92s owner, the Tribune=20
Company, over job cuts in the newsroom. In a=20
highly unusual move, Dean P. Baquet, who was=20
named editor last year, was quoted yesterday in=20
his own newspaper as saying he was defying the=20
paper=92s corporate parent in Chicago and would not=20
make the cuts it requested. The paper=92s=20
publisher, Jeffrey M. Johnson, said he agreed=20
with Mr. Baquet. =93Newspapers can't cut their way=20
into the future,=94 he told the paper. The number=20
of jobs at stake is unclear but the paper, the=20
fourth largest in the country, has eliminated=20
more than 200 positions over the last five years=20
from an editorial staff that now numbers about=20
940. =93I am not averse to making cuts,=94 Mr. Baquet=20
told the paper. =93But you can go too far, and I=20
don't plan to do that.=94 The paper reported that=20
Scott C. Smith, president of the Tribune=20
Publishing division, had asked the paper=92s=20
executives to come up with a plan for trimming=20
their budgets, but when Mr. Smith visited Los=20
Angeles late last month, they had produced no such plan.
http://www.nytimes.com/2006/09/15/business/media/15paper.html
(requires registration)

MURDOCH MAY MAKE MALONE AN OFFER
[SOURCE: Broadcasting&Cable, AUTHOR: Anne Becker]
Rupert Murdoch wants John Malone to get out of=20
his hair. To that end, Murdoch might be offering=20
Malone DirecTV. Murdoch's News Corp. is=20
proposing to Malone's Liberty Media a tax-free=20
exchange of its DirecTV stake in return for the=20
$10 billion stake Liberty owns in News Corp.,=20
according to a report by CNBC's David Faber. With=20
the satellite business limited in its growth,=20
DirecTV has frustrated News Corp. lately which=20
could explain the company's willingness to part=20
with it. Murdoch aggressively went after DirecTV=20
for years, but has been so disappointed with it=20
lately, he has called it a "turd bird." Another=20
solution would be for News Corp. to buy its=20
competitor EchoStar and have a monopoly of the satellite market.
http://www.broadcastingcable.com/article/CA6372374.html?display=3DBreaki...
News
* Murdoch to Hand DirecTV to Malone?
http://www.multichannel.com/article/CA6372364.html?display=3DBreaking+News
* Murdoch Said to Be in Talks With Liberty on Stock Swap
http://www.nytimes.com/2006/09/15/business/media/15cable.html
* Murdoch May Swap DirecTV
http://www.latimes.com/business/printedition/la-fi-liberty15sep15,1,7792...
.story?coll=3Dla-headlines-pe-business

CELLS ON A PLANE
[SOURCE: Los Angeles Times, AUTHOR: Editorial Staff]
[Commentary] Ryanair, a low-cost European=20
carrier, will begin to allow passengers use their=20
cell phones on flights next year. And if the=20
service proves popular, cellphones on airplanes=20
soon may become as common as bad food or a crying=20
baby in the seat next to you. A growing body of=20
research shows that mobile communications pose=20
minimal or no risk during flight, especially on=20
newer planes. And airlines see a new technology=20
called "pico cells" as a way to provide even more=20
safety. Pico cells are pocket-sized transmitters=20
onboard that collect wireless signals from=20
in-flight cellphone calls and transmit them=20
directly to a ground or satellite network rather=20
than letting the signals float through the air.=20
The technology is a major reason the FCC=20
announced two years ago that it was considering=20
allowing onboard cellphone calls in the U.S. The=20
agency has yet to follow up, but with Ryanair's=20
announcement, the pressure to make a decision is=20
bound to increase. If cellphone use is approved,=20
let's hope airlines can find a way to balance the=20
needs of overly chatty passengers and those they=20
drive nuts. Maybe they can offer the quiet ones a little more legroom.
http://www.latimes.com/news/printedition/opinion/la-ed-cell15sep15,1,114...
9.story?coll=3Dla-news-comment
(requires registration)
--------------------------------------------------------------
"Where's the party, officer?"
http://www.lyricsdownload.com/big-audio-dynamite-the-globe-lyrics.html
--------------------------------------------------------------
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.
--------------------------------------------------------------