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TELECOM LEGISLATION
Limited Time, Election Year Politics May Derail Senate Telecom Measure
Local Governments Want Senate Bill Changed
Maryland County 'Stunned' By Verizon Suit

AT THE FCC
FCC Asks For Another Crack at Profanity

QUICKLY -- Let global online freedom ring?; Press=20
disclosures help more than hurt; Tax dollars to=20
fund study on restricting public data; PA=20
Statewide-Franchise Bills Move Forward; DC-area=20
Reps have ideas for Adelphia Merger Conditions;=20
Wireless Web Comes to NYC Parks; Televisa Won't=20
Share Univision Shares; Motorola and Intel to=20
Invest in Clearwire; For Ramadan Viewing: A TV=20
Drama Against Extremism; Web phones pose little threat to telcos

TELECOM LEGISLATION

LIMITED TIME, ELECTION YEAR POLITICS MAY DERAIL SENATE TELECOM MEASURE
[SOURCE: Congress Daily 6/30, AUTHOR: Greta Wodele]
The Communications, Consumer's Choice, and=20
Broadband Deployment Act of 2006, passed by the=20
Senate Commerce Committee last week, has an=20
uncertain future mainly because of the limited=20
working days left before Congress faces the=20
November election. Senate Majority Leader Bill=20
Frist (R-TN) is considering whether to bring the=20
legislation to the floor this fall. But he has=20
first he has ordered Commerce Committee Chairman=20
Ted Stevens (R-Alaska) to confirm that 60=20
senators would support an effort to overcome a=20
potential filibuster. However, even if Sen=20
Stevens succeeds, Sen Frist is likely to weigh=20
the political benefits against a potential policy=20
fight before scheduling a vote. "The clock will=20
be a major factor regardless of whether 60 votes=20
can be found," a Frist aide said Friday, adding=20
that the majority leader "will take it one step=20
at a time." Sen Frist will study the legislative=20
calendar "and decide if this giant policy and=20
floor fight is appropriate for the 109th Congress=20
or for the 110th." Sen Stevens may delete parts=20
of the bill to win votes. But he drew a line in=20
the sand on video-franchising changes and=20
provisions to broaden the universal service fund,=20
which provides communications services to rural and low-income areas.
http://www.njtelecomupdate.com/lenya/telco/live/tb-GQAW1152125011916.html
* Tie Vote On 'Net Neutrality' Poses Obstacle In Senate
Advocates of telecom legislation favored by the=20
Bell telecommunications firms acknowledged that=20
the tie vote on a network neutrality amendment=20
during this week's Senate Commerce Committee=20
debate means they face an uphill battle to win=20
congressional passage of their measure this year.=20
The strongly partisan vote on network neutrality=20
-- all 10 Democrats on the Commerce Committee=20
voted with Sen. Olympia Snowe (R-Maine) --=20
underscores the difficulty that Sen Stevens could=20
have in lining up the supermajority of 60 votes=20
necessary in the Senate to limit debate and=20
therefore override any attempt to delay the=20
vote. In June, Senate Minority Leader Harry Reid=20
(D-NV) told a conference for a Web log community=20
in Las Vegas that he strongly supports net=20
neutrality and would stop a bill from going to the floor without it.
http://www.njtelecomupdate.com/lenya/telco/live/tb-ZVEJ1152125524722.html
* Stevens Mark Up -- Results
Harold Feld looks at what's in and what's out of the Senate telecom bill.
http://www.wetmachine.com/totsf/item/547
* Sen Stevens shows his Internet savvy
http://blog.wired.com/27BStroke6/?entry_id=3D1512499

LOCAL GOVERNMENTS WANT SENATE BILL CHANGED
[SOURCE: Multichannel News, AUTHOR: Ted Hearn]
Top local government organizations want changes=20
to a Senate telecommunications bill or they plan=20
to oppose the measure if it ever reaches the=20
Senate floor. In a letter Monday, local officials=20
outlined their objections to the bill (S. 2686,=20
H.R. 5252), which passed the Senate Commerce=20
Committee last Wednesday in a 15-7 vote that left=20
its main backer, Sen. Ted Stevens (R-Alaska),=20
wondering whether he has sufficient support -- 60=20
votes -- to get the full Senate to debate the=20
bill. Five local organizations -- including the=20
U.S. Conference of Mayors and the National=20
Association of Counties -- said the fact that the=20
bill excluded a requirement that phone companies=20
need to extend their video facilities to all=20
potential subscribers in a franchise area was a=20
=93grave concern.=94 They added that tax relief for=20
wireless-phone companies and a permanent ban on=20
taxation of Internet access were =93unacceptable.=94=20
Lastly, they objected to an amendment sponsored=20
by Sen. John Ensign (R-NV) that would exempt from=20
cable franchising a hybrid video service that=20
combined satellite TV and terrestrial broadband=20
service. AT&T=92s Homezone project -- which offers=20
satellite TV with movies and video downloaded=20
from the Internet -- would be covered by the exemption.
http://www.multichannel.com/article/CA6349902.html?display=3DBreaking+News

MARYLAND COUNTY 'STUNNED' BY VERIZON SUIT
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
The Montgomery County (Maryland) Council has=20
fired back at Verizon in the wake of the telco's=20
lawsuit charging the county with "unreasonable=20
and illegal" demands in ongoing franchise=20
contract negotiations. Council VP Marilyn=20
Praisner said in a statement: =93I am stunned to=20
have these false accusations by Verizon leveled=20
against Montgomery County. Repeatedly I have=20
urged Verizon to submit a cable franchise and yet=20
they have refused while posturing publicly before=20
the Management and Fiscal Policy (MFP) Committee=20
that they were committed to working with=20
us....Verizon just doesn't want to play by the=20
same rules as everyone else. The County has been=20
more than patient with Verizon. We facilitated=20
the deployment of their fiber optic technology=20
even though it created construction problems in=20
our neighborhoods and caused disruption of=20
service for [incumbent cable operator] Comcast=20
and others. This lawsuit is not really about=20
Montgomery County. It is Verizon=92s attempt to=20
influence federal legislation. It is about=20
eradicating the role of local government, the=20
government closest to the people, and our efforts=20
to protect consumers and our local rights-of-way.=94
http://www.broadcastingcable.com/article/CA6349826.html?display=3DBreaki...
News

AT THE FCC

FCC ASKS FOR ANOTHER CRACK AT PROFANITY
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
The FCC -- joined by ABC, NBC and CBS affiliate=20
associations -- has asked a New York Court to=20
delay its scheduled hearing of a challenge to=20
four indecency findings against fleeting=20
expletives that were part of the FCC=92s March=20
indecency findings. The four had no fine attached=20
and the FCC=92s promise it would not hold them=20
against stations at renewal time, thus the FCC=20
considered its work done. The networks, their=20
affiliate associations, and Hearst-Argyle TV took=20
those decisions directly to court, since the FCC=20
had bypassed the normal appeals process in what=20
it said was an effort to provide guidance without=20
adverse consequences. The incidents in question=20
occurred during a 2004 airing of CBS=92 The Early=20
Show, Fox=92s 2002 and 2003 broadcast of The=20
Billboard Music Awards and a 2003 episode of=20
ABC=92s NYPD Blue. NBC did not have a program=20
involved but intervened nonetheless given the=20
still-unresolved Bono "f-word" decision (an NBC=20
Golden Globes telecast) that signalled the=20
beginning of the tougher profanity policy. The=20
FCC=92s initial decision was that a fleeting,=20
adjectival f-word was not indecent, but that was=20
later reversed by the commissioners after=20
Congress pushed the FCC to reexamine the case.=20
Now, the FCC has asked the court to remand the=20
four March profanity decisions back to it so that=20
it can look at them again and hear the arguments=20
that the broadcasters did not get to make. The=20
FCC promises to make its new ruling on them=20
within 60 days and wants the September court arguments delayed.
http://www.broadcastingcable.com/article/CA6349901.html
* FCC Shifts Gears on Indecency
http://www.tvweek.com/news.cms?newsId=3D10312
* FCC Seeks a Review of Indecency
http://www.nytimes.com/2006/07/06/business/media/06fcc.html

QUICKLY

LET GLOBAL ONLINE FREEDOM RING?
[SOURCE: C-Net|News.com, AUTHOR: Eric J. Sinrod]
[Commentary] A commentary on the Global Online=20
Freedom Act of 2006 (HR 4780), a bill "to promote=20
freedom of expression on the Internet, to protect=20
United States business from coercion to=20
participate in repression by authoritarian=20
foreign governments, and for other purposes." The=20
bill provides the following statement of policy=20
for the United States to: "Promote the ability=20
of all to access and contribute information,=20
ideas and knowledge via the Internet, and to=20
advance the right to receive and impart=20
information and ideas through any media=20
regardless of frontiers as a fundamental=20
component of United States foreign policy"; "Use=20
all instruments of United States influence,=20
including diplomacy, trade policy and export=20
control, to support, promote and strengthen=20
principles, practices and values that promote the=20
free flow of information"; and "Prohibit any=20
United States business from cooperating with=20
officials of Internet-restricting countries in=20
effecting political censorship of online=20
content." The bill proposes a process whereby the=20
president would designate certain foreign=20
countries as "Internet-restricting" regions that=20
are "directly or indirectly responsible for a=20
systematic pattern of substantial restrictions on=20
Internet freedom during the preceding one-year=20
period." The bill then goes on to provide=20
restrictions on United States businesses with=20
respect to Internet-restricting countries. For=20
example, under certain circumstances, U.S.=20
businesses that host Internet search engines or=20
maintain Internet content hosting services could=20
not locate computer hardware in=20
Internet-restricting countries. Is it realistic=20
to think that Internet-restricting countries will=20
change their restricting policies because U.S.=20
businesses might be penalized because of the=20
restrictions put in place in those countries? The=20
restrictions are established at the government=20
level, and are not directed or controlled by the=20
U.S. businesses. There might be a better way to=20
seek to achieve global online freedom,=20
notwithstanding the lofty goals of H.R. 4780, Sinrod concludes.
http://news.com.com/Let+global+online+freedom+ring/2010-1028_3-6090725.h...
?tag=3Dhtml.alert

PRESS DISCLOSURES HELP MORE THAN HURT
[SOURCE: The Christian Science Monitor, AUTHOR:=20
Pat M. Holt, former chief of staff of the Senate Foreign Relations Committe=
e]
[Commentary] Government officials have been=20
highly critical of the media's publication of=20
details about US intelligence activities in the=20
war on terror. The two most recent examples are=20
extensive wiretaps by the National Security=20
Agency and US access to international financial=20
transactions. President Bush called the=20
disclosures "disgraceful." Rep. Peter King (R-NY)=20
said The New York Times should be prosecuted for=20
treason rather than be awarded a Pulitzer prize=20
for the NSA story. Rep. J.D. Hayworth (R-AZ) is=20
asking that the Times's Congressional press=20
credentials be suspended. All administrations=20
tend to overclassify information, in terms of=20
volume of documents and the level of=20
classification. This proliferation increases the=20
likelihood of leaks. Not many of these that=20
become public can be demonstrated to harm=20
national security. The stories that upset=20
presidents most are those that expose the=20
government doing something it should not be=20
doing, and they are the ones that most need to be published.
http://www.csmonitor.com/2006/0706/p08s02-coop.html

TAX DOLLARS TO FUND STUDY ON RESTRICTING PUBLIC DATA
[SOURCE: USAToday, AUTHOR: Richard Willing]
The federal Freedom of Information Act, which=20
became law 40 years ago this week, has long been=20
a source of tension between the government and=20
the public and news media. To celebrate the=20
anniversary, the federal government will pay a=20
Texas law school $1 million to do research aimed=20
at rolling back the amount of sensitive data=20
available to the press and public through=20
freedom-of-information requests. Beginning this=20
month, St. Mary's University School of Law in San=20
Antonio will analyze recent state laws that place=20
previously available information, such as site=20
plans of power plants, beyond the reach of public inquiries.
http://www.usatoday.com/printedition/news/20060706/a_foia06.art.htm

PENNSYLVANIA STATEWIDE-FRANCHISE BILLS MOVE FORWARD
[SOURCE: Multichannel News, AUTHOR: Linda Haugsted]
As promised late last month, legislators in=20
Pennsylvania introduced bills in both chambers to=20
enable state franchising for new video=20
competitors. The similar bills would assign=20
franchising authority to the Corporation Bureau=20
of the Department of State. Once a potential new=20
provider files -- identifying corporate officers,=20
designating the area the company intends to serve=20
and vowing to observe federal communications laws=20
-- the bureau will have 15 days to issue the=20
statewide operating permission. The bills retain=20
power for local governments to hear cable=20
complaints and attempt to mediate resolutions.=20
Local governments will also continue to collect=20
5% of gross revenues as franchise fees, but they=20
may levy no other taxes. Channel requirements for=20
public, educational and government channels are=20
also preserved -- up to three channels for large cities.
http://www.multichannel.com/article/CA6349894.html?display=3DBreaking+News

REPS: ADD MASN TO ADELPHIA MERGER CONDITIONS
[SOURCE: Multichannel News]
Reps. Tom Davis (R-VA and Chairman of the=20
Government Reform Committee), James Moran (D-VA)=20
and Albert Wynn (D-MD) asked the Federal=20
Communications Commission Wednesday to make=20
Comcast=92s and Time Warner Inc.=92s proposed merger=20
with Adelphia contingent on Comcast entering=20
binding arbitration to settle its dispute with=20
Mid-Atlantic Sports Network over the airing of=20
Washington Nationals Major League Baseball games.=20
Comcast has refused to carry the regional sports=20
network -- which controls the rights to most=20
Nationals games -- due to a dispute with=20
Baltimore Orioles owner Peter Angelos over=20
television rights to MLB=92s Orioles and control of=20
the region's sports-programming market.
http://www.multichannel.com/article/CA6349895.html?display=3DBreaking+News

AFTER DELAYS, WIRELESS WEB COMES TO NYC PARKS
[SOURCE: New York Times, AUTHOR: Sewell Chan]
By the end of August, wireless networks will be=20
established at 18 locations in 10 of New York=20
City's most prominent parks =97 including Central,=20
Prospect and Riverside Parks =97 in a major=20
citywide expansion of free Internet access.
http://www.nytimes.com/2006/07/06/nyregion/06wifi.html
(requires registration)

TELEVISA WON'T SHARE UNIVISION SHARES
[SOURCE: Multichannel News, AUTHOR: Mike Farrell]
Just days after its bid to acquire Univision=20
Communications was rejected, Grupo Televisa said=20
in a filing with the Securities and Exchange=20
Commission that it will not contribute its shares=20
in the Spanish-language broadcaster to the=20
winning bidders, adding that it could start a=20
rival network. Miller Tabak analyst David Joyce=20
wrote in a research note Wednesday that the=20
latest Televisa salvo is a setback to the winning=20
bidders, but it should not jeopardize the closing=20
of the deal. =93This could trigger, at closing, a=20
breakdown of a participation agreement that in=20
turn would allow [Televisa] to enter new business=20
opportunities within the United States without=20
having to offer [Univision] participation,=94 Joyce=20
wrote. =93This filing essentially sets into motion Televisa=92s plan B.=94
http://www.multichannel.com/article/CA6349746.html?display=3DBreaking+News
* Univision Stake Is on the Block
http://www.nytimes.com/2006/07/06/business/media/06univision.html
(requires registration)
* Televisa Could Battle Its U.S. Partner
http://www.latimes.com/business/printedition/la-fi-televisa6jul06,1,3382...
.story?coll=3Dla-headlines-pe-business

MOTOROLA AND INTEL TO INVEST IN CLEARWIRE
[SOURCE: New York Times, AUTHOR: Laurie Flynn & John Markoff]
The investment units of Intel and Motorola said=20
Wednesday that together they would invest $900=20
million in Clearwire, a wireless Internet service=20
provider, in hopes of speeding development of its=20
high-speed wide-range network. Intel Capital said=20
it would make a $600 million cash investment in=20
Clearwire, which was founded nearly three years=20
ago by Craig O. McCaw, a pioneer in the cellular=20
telephone industry. Motorola Ventures would not=20
say how much of its $300 million investment would=20
be in cash. In a related transaction, Motorola=20
said it would buy Clearwire's NextNet Wireless=20
subsidiary for an undisclosed amount. Analysts=20
said Intel and Motorola wanted to give a lift to=20
WiMax, a standard for mobile wireless that is=20
used by Clearwire and is competing with=20
technology from Qualcomm. WiMax is much like the=20
popular WiFi networking standard but works over=20
much greater distances, carrying both Internet=20
data and mobile phone calls. A single WiMax base=20
station could connect hundreds or potentially=20
thousands of customers to the Internet over distances of many miles.
http://www.nytimes.com/2006/07/06/technology/06chip.html
(requires registration)
* Intel puts money on wireless networks
http://www.mercurynews.com/mld/mercurynews/business/technology/14976053.htm

FOR RAMADAN VIEWING: A TV DRAMA AGAINST EXTREMISM
[SOURCE: New York Times, AUTHOR: Michael Slackman]
This is the time of year when Syria's producers=20
and directors prepare shows for broadcast during=20
Ramadan. The holy month, which this year begins=20
in late September, is a time when Muslims fast=20
during daylight hours and often gather with=20
family and friends at night to feast and watch=20
television. A series called "Renegades" is part=20
of a growing trend in Arab countries, where=20
leaders are eager to address social taboos and=20
religious extremism but are reluctant to confront them more directly.
http://www.nytimes.com/2006/07/06/world/middleeast/06syria.html
(requires registration)

WEB PHONES POSE LITTLE THREAT TO TELCOS: MOODY'S
[SOURCE: Reuters, AUTHOR: Marie-Louise Moller]
The ratings outlook for incumbent European=20
telecom companies is stable and new technology,=20
like Internet-based telephone services, poses=20
little threat to the sector, according to a=20
Moody's Investors Service report released on=20
Thursday.European telecom firms are seeing their=20
traditional fixed-line telephone business shrink=20
as more people switch to mobile phones. They are=20
also under pressure from smaller rivals offering=20
cheaper phone and Internet services. But Moody's=20
said that while VoIP (Voice over Internet=20
Protocol) would erode revenues, the effect would=20
be small, and any losses would be offset by=20
broadband Internet products and services and mobile telephony.
http://today.reuters.com/news/newsArticle.aspx?type=3DinternetNews&storyID=
=3D2006-07-06T082249Z_01_L05611010_RTRUKOC_0_US-TELECOMS-MOODYS-VOIP.xml&ar=
chived=3DFalse
--------------------------------------------------------------
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.
--------------------------------------------------------------