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VERIZON SAYS DEREGULATION RULING WON'T UNRAVEL MCI CONCESSIONS
[SOURCE: Wall Street Journal, AUTHOR: Amy Schatz Amy.Schatz@wsj.com]
Verizon, making clear its view on some implications of a confusing move by the Federal Communications Commission earlier this week, said regulators' decision to deregulate broadband data services it provides to large business customers won't free it from conditions imposed when it acquired MCI. Verizon also said the decision won't eliminate its obligation to continue payments to a fund that subsidizes phone services for low-income and rural customers. Verizon also said this week's decision has no impact on conditions the FCC and Justice Department imposed when it acquired MCI last year. Most of the conditions required it to continue to lease high-volume lines in some markets and limited the price it could charge to some customers. Although the relief provided by the FCC involves some of the same lines, the merger conditions are a separate obligation and aren't affected, said Ed Shakin, assistant general counsel at Verizon. "You can have independent obligations on the same services," he said.
http://online.wsj.com/article/SB114307368128605775.html?mod=todays_us_ma...
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http://online.wsj.com/article/SB114307368128605775.html?mod=todays_us_marketplac…
FCC CHAIRMAN MARTIN GIVES PUBLIC INTEREST SAFEGUARDS A "POCKET VETO"
[SOURCE: Center for Digital Democracy]
[Commentary] In a quiet move full of implications for the future openness of the Internet, the FCC has granted Verizon relief from any common carriage requirements in the company's broadband offerings. But instead of conducting a full, public inquiry into the issue, FCC Chairman Kevin Martin elected simply to allow Verizon's petition for forbearance from Title II (common carriage) rules to expire without commission action, effectively giving the company exactly what it wanted. Chairman Martin apparently got what he wanted, too, declaring in a joint statement with Commissioner Deborah Taylor Tate that "promoting broadband deployment is one of the highest priorities of the FCC. To accomplish this goal, the Commission seeks to establish a policy environment that facilitates and encourages broadband investment, allowing market forces to deliver the benefits of broadband to consumers.… This relief will enable Verizon to have the flexibility to further deploy its broadband services and fiber facilities without overly burdensome regulations." Among those allegedly burdensome regulations, Commissioner Michael Copps pointed out in a spirited critique of the commission's "inaction," are many of the public interest safeguards that have long governed telecommunications, including Universal Service, privacy, disability access, consumer rights, rural service, and interconnections with other carriers and technologies. According to CDD Executive Director Jeff Chester, "Instead of protecting Internet users, consumers, and citizens, Chairman Martin has further eroded the public interest potential of digital communications. He should resign. It's clear he is more loyal to the interests of broadband monopolist than the public at large."
http://www.democraticmedia.org/news/washingtonwatch/FCCVerizon.html
* Kevin Martin Is Dangerous to our Democracy’s Health
http://www.democraticmedia.org/jcblog/?p=5
Martin Gives Public Interest Safeguards a "Pocket Veto"
ANOTHER VIEW OF "NET NEUTRALITY"
[SOURCE: Skype Journal, AUTHOR: Hudson Barton]
[Commentary] Net Neutrality proponents sometime make an analogy to a highway with a UPS truck and a Wal-Mart truck where the UPS truck is serving a public purpose while the Walmart truck is serving a private purpose. Unfortunately, the analogy is not helpful at all. It presupposes a world where there are just a few trucks and one highway, and I maintain it is exactly the world that the proponents of "net neutrality" hope will develop. It is a world of scarcity, controlled by a few big telecoms, cablecos and ISPs. "Net neutrality" is just a cover for the market protection that these big companies will receive in exchange for their commitment to a certain fairness doctrine. As a result, Internet service will look increasingly like a public utility. It does not take a big company to be an Internet carrier any more than it does to provide Internet content. The current debate reveals the real intent of "net neutrality" lobbyists... to destroy the very competition that it purports to protect, to reward the mediocre at the expense of the excellent.
http://www.skypejournal.com/blog/archives/2006/03/barton_another_view_of...
Another view of "net neutrality"
NUTS AND BOLTS OF NET DISCRIMINATION: ENCRYPTION
[SOURCE: Freedom to Tinker, AUTHOR: Ed Felten]
[Commentary] Perhaps encryption can play a role in the net neutrality debate. If users encrypt their packets, the encrypted packets will all look like gibberish to the ISP, so the ISP won't be able to tell one type of packet from another. This could force the ISP to handle all of the user’s packets in the same way. The ISP can still penalize all of the user’s packets, or it can single out randomly chosen packets for special treatment, but those are the only forms of discrimination available to it. The user and the ISP are playing an interesting game of chicken. The ISP wants to discriminate against some of the user’s packets, but doesn't want to inconvenience the user so badly that the user discontinues the service (or demands a much lower price). The user responds by making his packets indistinguishable and daring the ISP to discriminate against all of them. The ISP can back down, by easing off on discrimination in order to keep the user happy -- or the ISP can call the user’s bluff and hamper all or most of the user’s traffic. But the ISP may have a different and more effective strategy. If the ISP wants to hamper a particular application, and there is a way to manipulate the user’s traffic that affects that application much more than it does other applications, then the ISP has a way to punish the targeted application. So it turns out that even using encryption isn't necessarily enough to shield a user from network discrimination. Discrimination can work in subtle ways.
http://www.freedom-to-tinker.com/?p=995
http://www.freedom-to-tinker.com/?p=995
FREEING CITIES FROM TELCO AND CABLE MONOPOLIES
[SOURCE: Government Technology, AUTHOR: John M. Eger, San Diego State University]
[Commentary] Right now in state capitols across America, legislation is being discussed or enacted to prevent the municipality [from playing] any role whatsoever in shaping its new information infrastructure. Over 100 other American cities have expressed the desire to provide such municipal services. Their city councils, their mayors, as well as their state legislators have threatened them. They have been told in no uncertain terms that the telecommunications business belongs to the private sector. Read that: the existing cable or telecommunications firms. Most cities -- already subsidized in some small way by a cable franchise -- are not willing to make the investment and possibly lose that subsidy. I'm convinced most, however, are simply afraid to act in the face of such state and local obstacles. We must find a way to free the cities. The city traditionally has been the center of all commerce and in the wake of a global knowledge economy, it is the cities who could be the incubators of creativity and innovation which will be the hallmarks of our success in the future.
http://www.govtech.net/news/news.php?id=98812
* Municipal Wireless: Social Good or Private Gain?
http://choicelearning.blogspot.com/2006/03/municipal-wireless-social-goo...
http://www.govtech.net/news/news.php?id=98812
PANEL SUGGESTS CANADA EASE TELECOM RESTRICTIONS
[SOURCE: New York Times, AUTHOR: Ian Austen]
A Canadian government panel has called for the elimination of foreign ownership restrictions on telecommunications companies as well as the deregulation of telephone and Internet services. The report by the Telecommunications Policy Review Panel, released Wednesday, outlines a plan for gradually reducing the limits on foreign control of telephone companies, after an examination of similar restrictions on Canadian broadcasters and cable operators. The review panel broadly adopted recommendations from Telusthe dominant telephone company in western Canada, and BCE, which is based in Montreal and owns Bell Canada, for the elimination of price regulation and other restrictions on telephone companies. Many of the policies were originally intended to increase competition in the telecommunications market from new companies. Although the panel recommends methods for protecting consumers, including harsher penalties for unfair competition, and the development of Internet services in rural areas, Lawson A. W. Hunter, BCE's chief corporate officer, said that it largely reflected his industry's viewpoint. "This report is very, very strong on that stuff," he said.
http://www.nytimes.com/2006/03/23/business/worldbusiness/23dereg.html?pa...
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http://www.nytimes.com/2006/03/23/business/worldbusiness/23dereg.html?pagewanted…
WB CENSORS ITS OWN DRAMA FOR FEAR OF FCC FINES
[SOURCE: New York Times, AUTHOR: Bill Carter]
Concerned about the recent decision by the Federal Communications Commission to fine television networks for material deemed indecent, the WB network will broadcast a new drama next week that it has censored over the objections of the program's creator. But first, the network will offer the uncut version of the pilot episode on its Web site, starting today — a further example of the new strategies network television may be pursuing, both to escape government-imposed restrictions and to find alternative ways of reaching viewers. It is the first time a network has offered on another outlet an uncut version of a program it has been forced to censor. The show, "The Bedford Diaries," was created by Tom Fontana, whose long résumé includes award-winning shows like "St. Elsewhere" and "Homicide" for network television and the far more graphic prison drama "Oz" for HBO, a pay-cable channel with no content restrictions. The pilot episode of "The Bedford Diaries," which concerns a group of college students attending a class on human sexuality, had already been accepted by WB's standards department. After the F.C.C. decision last week to issue millions of dollars in fines against broadcast stations, the network's chairman, Garth Ancier, contacted Mr. Fontana and asked him to edit a number of specific scenes out of the show, including one that depicted two girls in a bar kissing on a dare and another of a girl unbuttoning her jeans. "I said no," Mr. Fontana said in an interview Wednesday. "I told him I found the ruling incomprehensible. He said the censor would do the edit."
http://www.nytimes.com/2006/03/23/arts/23bedf.html
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WB Censors Its Own Drama for Fear of FCC Fines
YOUNG PEOPLE TURN TO WEB FOR NEWS
[SOURCE: USAToday, AUTHOR: Peter Johnson]
A study released by the Pew Internet & American Life project finds that for young people the Internet has become the primary news source on the average day. Within a “high-powered†group of Internet users — those who use broadband four or more times a day — 71% go online for news on an average day, while 59% get news from local TV, just over half from national TV and radio, and about 40% from local newspapers. But especially for the under-36 age group, the local newspaper, local television and national TV newscasts play lesser roles in their newsgathering, the study finds. The study paints a bleak outlook for traditional ink-on-paper newspapers. But it also finds that younger readers — those under 36 who are often written off as not interested in news — are being drawn into the news habit earlier thanks to the appeal of the Internet. “For many of these young broadband users, the Internet is their main course for news, and they don't always eat their vegetables or order dessert in the form of using other media,†says study author John Horrigan. Though this may not come as news to anyone under 35, the results have profound ramifications for mainstream media outlets, which need to integrate an online presence as quickly as possible or risk alienating the next generation of news consumers, Horrigan says. “Mainstream media need to search for the right business model that integrates the online experience into what they do,†Horrigan says. “We're seeing the beginnings of a significant segment of the population having their daily newsgathering habits formed by what they see on the Internet.†This compares with just five years ago, he says, when Pew researchers found that high-speed users “were using the Internet to fill in their newsgathering habits. Now, it governs where they go and what they do†to get news.
http://www.usatoday.com/printedition/life/20060323/d_mediamix23.art.htm
See --
* Online News: For many home broadband users, the Internet is a primary news source
http://www.pewinternet.org/PPF/r/178/report_display.asp
* Pew: Web Users Still Unlikely to Pay for News
http://www.editorandpublisher.com/eandp/news/article_display.jsp?vnu_con...
Young People Turn to the Web for News
TV, FILMMAKING LOOK LIKE THE INTERNET'S NEXT CONQUESTS IN ITS MARCH TOWARD WORLD DOMINATION
[SOURCE: San Francisco Chronicle, AUTHOR: Ellen Lee]
From the dangerous to the crude to the endearingly cute, Internet television has become the latest rage on the Web. Hordes of Internet users are tuning into sites such as YouTube.com and video.google.com, where they can watch, post and share millions of pieces of video footage. Some are even taken straight off television, such as "Saturday Night Live's" skit of waif-like actress Natalie Portman doing gangsta rap and spewing bleeped-out obscenities. The video clips demonstrate how the Internet is reshaping how we get our television entertainment.
http://sfgate.com/cgi-bin/article.cgi?f=/c/a/2006/03/23/ONLINEVIDEO.TMP
http://sfgate.com/cgi-bin/article.cgi?f=/c/a/2006/03/23/ONLINEVIDEO.TMP
MARKETERS LOSE CONFIDENCE IN TV ADVERTISING
[SOURCE: AdAge, AUTHOR: Abbey Klaassen]
Yes, the sky is falling, chicken. Major brand advertisers responsible for $20 billion in ad spending are losing confidence in the effectiveness of TV advertising. More than three out of four advertisers -- 78% to be exact -- said they have less confidence today in the effectiveness of TV advertising than they did two years ago, according to a survey released at today’s Association of National Advertisers TV Ad Forum. Almost 70% of advertisers believe DVRs and VOD will reduce or destroy the effectiveness of traditional 30-second commercials. Instead, they are looking at alternatives such as branded entertainment within TV programs (61%), TV program sponsorships (55%), interactive advertising during TV programs (48%), online video ads (45%) and product placement (44%). Additionally, 80% will spend more of their advertising budgets on Web advertising and 68% are looking into search engine marketing.
http://adage.com/news.cms?newsId=48381
* RIP 30-Second Spot?
http://www.broadcastingcable.com/article/CA6318182?display=Breaking+News
* TV Ads Losing Power, Survey Shows
http://online.wsj.com/article/SB114307625668605827.html?mod=todays_us_ma...
http://adage.com/news.cms?newsId=48381