Benton's Communications-related Headlines For Wednesday May 31, 2006
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CABLE
Multicast Must-Carry Vote 6/15
Could Giving Voters On-Demand Content Get Them Interested?
Firms Fork Over Funds For Cable Rate Campaign
Cable Sues USDA Over 'Net Subsidy
America Channel Sues Comcast/TW
INDECENCY
Indecency Bill Waits For Congress
Tate Promotes Positive Programming Alliance
QUICKLY -- From the Internet to the White House;=20
Tribune Buying Back $2B in Stock; Municipal=20
Wi-Fi; Internet advertising up 38 percent in=20
first quarter; The Educational Computer Myth; Egyptian Blogger go to Jail
CABLE
MARTIN: MULTICAST MUST-CARRY VOTE 6/15
[SOURCE: Multichannel News, AUTHOR: Ted Hearn]
The agenda for the June 15 FCC open meeting will=20
be announced on June 8 -- what will be on it?=20
Apparently a new proceeding that would propose to=20
change agency policy established in 2001=20
concerning how many broadcast TV station signals=20
end up on local cable TV systems. FCC Chairman=20
Kevin Martin seeks to reverse a FCC decision that=20
just one digital television channel for each=20
broadcaster be required to be carried on cable.=20
With digital TV technology broadcasters will be=20
able to air multiple, simultaneous signals=20
(perhaps as many as six); in the land of the=20
wonks this is know as multicasting. Under=20
Chairman Martin=92s proposal, if a digital-TV=20
station demands cable carriage of multiple=20
programming streams, the cable operator would be=20
required to carry them. Led by the NAB, TV=20
stations have urged the FCC to expand the=20
must-carry requirement to include all digital-TV=20
signals that consumers can view over-the-air=20
free-of-charge. The FCC rejected the idea in=20
February 2005 in a 4-1 vote, affirming the same=20
decision in 2001. The agency found that=20
multicasting mandates would impose a First=20
Amendment burden on cable without advancing=20
important governmental interests, such as the=20
preservation of free, over-the-air local TV or=20
advancement of the digital-TV transition. =93I=20
believe that reading the statute now as=20
expansively as broadcasters urge would likely=20
wither before a First Amendment challenge,=94 said=20
then-FCC Chairman Michael Powell=20
Then-Commissioner Martin, the lone dissenter,=20
disagreed, saying that the burden of digital=20
must-carry would be =93significantly less=94 than=20
analog must-carry due to compression technology.=20
Cable, he added, would not have to set aside more=20
than one-third of its channel capacity for=20
must-carry obligations. =93The burden on cable=20
capacity =85 is capped by statute, a cap that has=20
been upheld by the Supreme Court,=94 Commissioner=20
Martin said. If the FCC adopts rules under=20
Martin, cable operators and programmers are=20
highly likely to wage a court battle by arguing=20
that multicast must-carry would violate First=20
Amendment freedoms and take private property=20
without just compensation under the Fifth=20
Amendment. "The FCC already has twice rejected a=20
multicasting mandate, and no new evidence has=20
been presented that justifies a different result.=20
In fact, working directly with local=20
broadcasters, cable operators have added hundreds=20
of digital-broadcast channels to their lineups=20
nationwide and have effectively implemented a=20
privately negotiated agreement with public=20
television to ensure broad carriage of digital=20
public TV stations across the country,=94 National=20
Cable & Telecommunications Association spokesman Brian Dietz said.
http://www.multichannel.com/article/CA6339174.html?display=3DBreaking+News
* Full FCC Could Boost Multicast Fortunes
http://www.broadcastingcable.com/article/CA6339122?display=3DBreaking+News
COULD GIVING VOTERS ON-DEMAND CONTENT GET THEM INTERESTED?
[SOURCE: Wall Street Journal, AUTHOR: Peter Grant peter.grant( at )wsj.com]
[Commentary] Few would disagree that a more=20
informed electorate is desirable. In a survey of=20
eligible voters just before the 2000 election by=20
the Institute for Social Research at the=20
University of Michigan, 84% of respondents=20
couldn't identify either the incumbent or the=20
challenger in their U.S. congressional races.=20
On-demand TV could fight this trend by airing=20
debates and public meetings, such as city-council=20
hearings. There also could be channels devoted to=20
such simple but useful subjects as the voting=20
records of elected officials. But will cable=20
operators fulfill the political potential of=20
on-demand? There is encouraging precedent here.=20
The industry created the public-affairs network=20
C-SPAN in the late 1970s in recognition of its=20
civic responsibility. Some cable operators,=20
however, let executives at the local level choose=20
on-demand content, and they have little incentive=20
to explore its political potential. Others feel=20
they've met their obligations with the=20
public-access channels they are required by law=20
to make available. They also point to the=20
minuscule viewership most of these public-access=20
channels get, as well as the offensive content=20
they occasionally contain, ranging from nudity to=20
white supremacy. Cable companies can't legally=20
prohibit content on certain access channels if it=20
conforms to guidelines, which are pretty loose.=20
It might be time to re-examine cable's=20
public-access requirements in light of this new=20
technology. The timing is perfect because=20
Congress is in the midst of considering a major=20
rewrite of the Telecommunications Act. The=20
discussions in both the House and the Senate=20
already have touched on the fees cable companies=20
must contribute to public-access channels.=20
Perhaps they could negotiate a trade-off of some=20
public-access channels for more on-demand=20
content. No one is suggesting public-access=20
channels be eliminated. Some attract a decent=20
audience and provide important services, giving a=20
forum to underserved communities and offering=20
educational shows. Also, public-access channels=20
are available to practically all cable=20
subscribers on analog tiers of programming, while=20
only subscribers who pay extra for digital cable=20
can get on-demand. But most cable companies plan=20
to switch to all-digital systems. Operators and=20
customers alike would see a big benefit from=20
moving government and political content to=20
on-demand. Operators would find more precious=20
bandwidth to free up for high-definition content.=20
Viewers would be better served by having, say, a=20
city-council meeting available on-demand rather=20
than on an analog channel. In addition to=20
convenience, they could fast-forward through the=20
pothole committee report to get to the matters=20
that concern them. Unfortunately, a trade-off=20
won't be easy. The Alliance for Community Media,=20
a lobbying group for public access, opposes=20
giving back bandwidth. Some elected officials=20
also are wary of yet more visibility. C-SPAN=20
cameras weren't allowed in the U.S. Senate until=20
seven years after they started in the House. "You=20
have people who say, 'I got elected without=20
this,' " says Brian Lamb, C-SPAN's chief=20
executive. "They don't want to change."
http://online.wsj.com/article/SB114903389207066918.html?mod=3Dtodays_us_...
ketplace
(requires subscription)
FIRMS FORK OVER FUNDS FOR CABLE RATE CAMPAIGN
[SOURCE: Technology Daily, AUTHOR: Heather Greenfield]
Telecom companies are spending serious green on=20
advertising in recent weeks alerting Congress and=20
their staffers to what they call a serious cause=20
-- a grassroots campaign for lower cable and=20
broadband rates. The advertising came amid=20
debates on broader telecom legislation as part of=20
H.R. 5252, a telecom bill offered by House=20
Commerce Chairman Joe Barton (R-TX) and House=20
Judiciary Committee legislation on net=20
neutrality, H.R. 5417, which received committee=20
approval Thursday. The Senate debated a similar=20
measure Thursday. Gary Arlen of Arlen=20
Communications estimates the costs of local TV=20
ads at nearly $1 million per week. "I was struck=20
by how much saturation advertising was going on=20
the Barton bill," Arlen said. Arlen released a=20
brief study estimating that the U.S. Telecom=20
Association spent $250,000 a week over six weeks.=20
USTA represents the majority of the Bell=20
telecommunications firms. Arlen believes AT&T=20
spent $600,000 per week. TV4US, which bills=20
itself as a grassroots coalition funded by a=20
half-dozen corporate sponsors, spent $75,000 per=20
week. One of its sponsors is AT&T. "These guys=20
are intelligently making their media buys next to=20
newscasts or talk shows," Arlen said.
http://www.njtelecomupdate.com/lenya/telco/live/tb-LWCN1149016201609.html
CABLE SUES USDA OVER NET SUBSIDY
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
The Iowa Cable & Telecommunications Association=20
and cable company Mediacom have filed suit in=20
federal court charging that the U.S. Department=20
of Agriculture's broadband grant/loan program is=20
a failure and actually undermines the broadband=20
deployment it is designed to promote. The suit,=20
which asserts the loan program should be used=20
primarily to fund broadband in rural, unserved=20
areas, follows a USDA Inspector General report=20
finding that "hundreds of millions" in=20
low-interest loans were made to companies=20
providing service in affluent communities, some=20
with already two or more broadband providers.
http://www.broadcastingcable.com/article/CA6339331?display=3DBreaking+News
AMERICA CHANNEL SUES COMCAST/TW
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
The America Channel has sued Time Warner and=20
Comcast, seeking to block their purchase and=20
divvying up of bankrupt cable company Adelphia.=20
The channel argues that the companies are=20
monopolies that exclude competitors and restrain trade.
http://www.broadcastingcable.com/article/CA6339350?display=3DBreaking+News
INDECENCY
INDECENCY BILL WAITS FOR CONGRESS
[SOURCE: The Hollywood Reporter, AUTHOR: Brooks Boliek]
Both the House and the Senate have passed=20
versions of bills that would raise the amount of=20
fines on broadcasters who air indecent=20
programming. While there is sentiment among some=20
key House members to push for their version of=20
the bill, the House majority leader, Rep. John=20
Boehner (R-OH) said Thursday that the House will=20
take up the Senate's version of broadcast=20
indecency legislation during the first week in=20
June, when the House returns. The decision comes=20
as lawmakers realize that the Senate version,=20
authored by Sen. Sam Brownback (R-KS) has the=20
best chance of winning final approval as the=20
legislative workdays dwindle. Congress is=20
scheduled to adjourn Oct. 6, but there are=20
several pre-election recesses and holidays that=20
intervene, making time the enemy of any=20
legislative effort. Senators have balked at=20
several provisions in the House bill, including=20
the increase in fines for individuals and the=20
three-strikes provision. While Uptown's=20
legislation won quick approval by the House after=20
the Janet Jackson breast-baring incident during=20
the 2004 Super Bowl, it ran into trouble in the=20
Senate as lawmakers there worried about=20
overreaching. Eventually, under pressure from=20
conservative and Christian activists, the Senate=20
leadership won approval of Brownback's bill. The=20
decision by the House to agree to the Senate bill=20
is a realization that the tougher House bill=20
likely would fail to pass in the Senate. That,=20
and agreement by pressure groups pushing the=20
legislation, makes approval of the bill in June likely.
http://www.billboardradiomonitor.com/radiomonitor/news/business/leg_reg/...
icle_display.jsp?vnu_content_id=3D1002577143
TATE PROMOTES POSITIVE PROGRAMMING ALLIANCE
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
Republican FCC Commissioner Deborah Taylor Tate=20
wants to work with fellow Tennessean, Republican=20
Senate Majority Leader Bill Frist to help better=20
arm "modern day David[s] trying to influence the=20
Goliath of inappropriate content," saying "that's=20
where the government -- and indecency laws -- can=20
play a role." That call for an alliance came in a=20
letter to Sen Frist Tuesday praising him for=20
fast-tracking an indecency bill that ups the FCC=20
fines by 10 times, to $325,000. "In the coming=20
weeks, I hope that we can work together to=20
address these important issues and to be a voice=20
for families," Commissioner Tate told Sen Frist.=20
She said that indecency legislation was just "one=20
step," and that there is "so much more we can=20
do." Tate did not talk specifics, but told Sen=20
Frist she hoped he would "consider other,=20
positive measures that will encourage the=20
production and broadcast of quality children's=20
programming as well." While she said that=20
families are the first line of defense against=20
course content, she also said that, as parents,=20
"we can't be everywhere at once," and suggested=20
TV needed to help in that parenting function, a=20
suggestion supported by a study last week that=20
found that the majority of parents use the TV to help them mind the kids.
http://www.broadcastingcable.com/article/CA6338858?display=3DBreaking+News
QUICKLY
FROM THE INTERNET TO THE WHITE HOUSE
[SOURCE: Washington Post, AUTHOR: Jim VandeHei]
Unity08 -- which includes Hamilton Jordan, Gerald=20
Rafshoon, Doug Bailey and former Maine governor=20
Angus King -- has launched a campaign to remake=20
Internet politics, taking a forum that until now=20
has been associated with ideologues and angry=20
partisans and using it to start a movement=20
culminating in a bipartisan presidential ticket=20
in 2008. Their goal is to offer an alternative to=20
the two major party choices -- a unity ticket=20
that will emerge after secure, online balloting=20
that they hope will include millions of=20
Americans. In an announcement statement, Unity08=20
said its efforts are a reaction to a system that=20
has "polarized and alienated the American people"=20
through partisanship and interest-group politics.=20
Unity08's organizers estimate that if 20 percent=20
of the voting public signs on -- hardly a modest=20
goal but only slightly more than what independent=20
H. Ross Perot won in his dramatic 1992=20
presidential campaign -- then "our voters will decide the 2008 elections."
http://www.washingtonpost.com/wp-dyn/content/article/2006/05/30/AR200605...
1139.html
(requires registration)
What end of long-distance tax means for you
[SOURCE: MarketWatch, AUTHOR: Marshall Loeb]
[Commentary] Consumers are likely to save=20
$18/year with the end of the excise on long=20
distance service. Taxpayers will also see a=20
rebate on the tax collected over the past three=20
years. The Internal Revenue Service will=20
determine a standard credit -- or you can start=20
combing through old phone bills to determine just=20
how much you've paid. The three-year refund will=20
cost the government $15 billion, according to the U.S. Treasury.
http://www.marketwatch.com/News/Story/Story.aspx?siteid=3Dmktw&dist=3Dmo...
ver&guid=3D{6FE01165-A1CD-4713-BFC3-EB5AF144465F}
TRIBUNE BUYING BACK $2 BILLION IN STOCK
[SOURCE: Broadcasting&Cable, AUTHOR: John M. Higgins]
The Tribune Company has decided to spend $2=20
billion buying back its own shares. The buyback=20
is immense for a company the size of the=20
newspaper publisher and broadcaster, representing=20
around 25% of all of the company=92s outstanding=20
shares. Tribune is moving for an instant effect=20
in its stock price. While most companies spread=20
their buyback programs over many months, Tribune=20
will immediately tender for up to 53 million=20
shares in the open market. The company will buy=20
another 10 million shares from its largest=20
shareholders, the McCormick Tribune Foundation=20
and Cantigny Foundation. Finally, Tribune will=20
buy another 12 million shares in the open market.=20
The company plans to borrow money to finance the=20
buyback, but will partly offset that by selling=20
around $500 million in assets. Tribune would not=20
specify what would go on the block, citing only=20
non-core broadcasting and publishing=20
assets, real estate and securities. On possible=20
asset is a 31% stake in Food Network that Morgan=20
Stanley media analyst Doug Arthur estimates that=20
Tribune estimates is worth $800 million.
http://www.broadcastingcable.com/article/CA6338945?display=3DBreaking+News
* Tribune's Response To News Blues: A Big Buyback
http://online.wsj.com/article/SB114900492721266404.html?mod=3Dtodays_us_...
e_one
(requires subscription)
MUNI WI-FI: BRINGING EXPECTATIONS BACK TO EARTH
[SOURCE: BusinessWeek, AUTHOR: Olga Kharif]
[Commentary] Every city, nowadays, seems to be=20
planning a municipal Wi-Fi network. Problem is,=20
consumers' expectations of these networks are=20
often out of whack. Two most prevalent myths=20
floating around are: 1. These Wi-Fi networks will=20
be free for all to use. 2. These networks will=20
allow for high-speed wireless Internet access all over the city.
http://www.businessweek.com/the_thread/techbeat/archives/2006/05/municip...
wi-fi.html?campaign_id=3Drss_blog_blogspotting
INTERNET ADVERTISING UP 38% IN FIRST QUARTER: STUDY
[SOURCE: Reuters]
U.S. Internet advertising surged 38 percent to a=20
record $3.9 billion in the first quarter as=20
marketers moved additional dollars to the Web,=20
according to data released on Tuesday. The=20
Interactive Advertising Bureau and=20
PricewaterhouseCoopers surveyed leading companies=20
that sell advertising space online, including=20
Yahoo and Google, which are benefiting as=20
consumers spend more of their media and=20
purchasing time on the Internet. "The momentum=20
has continued to build in the Internet=20
advertising space," said David Silverman, a=20
partner at PricewaterhouseCoopers. "More and more=20
advertisers are seeing the effectiveness of the medium."
http://today.reuters.com/news/newsArticle.aspx?type=3DinternetNews&storyID=
=3D2006-05-30T160457Z_01_N30423977_RTRUKOC_0_US-MEDIA-INTERNET-ADVERTISING.=
xml
THE EDUCATIONAL COMPUTER MYTH
[SOURCE: Financial Times, AUTHOR: Thomas W. Hazlett, George Mason Universi=
ty]
[Commentary] Does it make Johnny or Suzie smarter=20
to seat them in front of a start-up screen?=20
Learning is mostly about growing an ability to=20
think, and web surfing skills scarcely pings the=20
higher cerebral reaches. At worst, the classroom=20
PC sucks up valuable oxygen, diverting youngsters=20
from frog dissections, multiplication tables, and=20
the ABCs. These nurture the brain in time-tested=20
exercises. The test of time may appear a weak=20
empirical standard, but the asserted correlation=20
between smart boxes and smart students is weaker=20
still. As Clifford Stoll opined a decade ago=20
about educational TV and classroom PCs: =93Both=20
give you the sensation that merely by watching a=20
screen, you can acquire information without work=20
and discipline.=94 The point is that modern systems=20
- from networked communications to artificial=20
intelligence - are not a boon to mankind, or that=20
children should be barred from enjoying their=20
fruits. It is that computers, which complement=20
the sweaty mental work-outs that grow young minds=20
into strong thinkers, do not substitute for=20
exercise. Throwing laptops at the education=20
problem is, alas, a whole lot easier than=20
figuring out how to actually teach kids. In the=20
sound-bite world, computers equal smart and key=20
demographics swoon for magic in the classroom.
http://news.ft.com/cms/s/a8ad9d82-f094-11da-9338-0000779e2340.html
(requires subscription)
NEW VEHICLE FOR DISSENT IS A FAST TRACK TO PRISON
[SOURCE: Washington Post, AUTHOR: Daniel Williams]
Egypt sends bloggers to jail.The legal status of=20
the jailed bloggers and other detainees=20
distresses their relatives and friends: Under=20
Egypt's emergency laws, which have been in place=20
for 25 years, the bloggers can be jailed=20
indefinitely. A special court reviews such=20
detentions only every 15 days. Some prisoners=20
held under emergency laws have been jailed for=20
more than a decade. "Blogging was a new but=20
growing phenomenon. The government is monitoring,=20
and it doesn't like" what it sees, said Gamal=20
Eid, director of the Arabic Network for Human Rights Information.
http://www.washingtonpost.com/wp-dyn/content/article/2006/05/30/AR200605...
1178.html
(requires registration)
--------------------------------------------------------------
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.
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