Subject: Benton's Communications-related Headlines for 3/09/05

From: Kevin Taglang <[email-masked]>
Date: Wed, 9 Mar 2005 07:02:39 -0600

BENTON'S COMMUNICATIONS-RELATED HEADLINES for MARCH 9, 2005
For upcoming media policy events, see http://www.benton.org/calendar.htm

MEDIA POLICY
        PIPA Coalition Urges President Bush to Appoint Public Interest-Minded FCC
Chair
        Preparing Consumers for the End of the Digital Television Transition
        Dancing In The Dark
        Senate May Tee Up Indecency Bill
        NASA Seeks FCC Stamp on Deals
        Senator Suggests Nielsen Bill

TELECOM POLICY
        FCC Chief Warns VoIP-Backers of Rock Star Syndrome
        Subplot in Contest for MCI: Fast Money vs. the Long Term
        Study: Video Holds Bundling Edge
        Cellphones Dial into the Preteen Market

QUICKLY -- Committee Subcommittee Leadership Positions; Members of FCC
Consumer Advisory Committee Named; Spread Spectrum & Broadcasting;
Broadband Goes Wireless; Unconstitutional Internet Content Rules; WIPO
Shutting Out Public Interest Organizations; McCain Faces
Conflict-of-Interest Flap; Who's Reading this E-mail?

TWO QUESTIONS TODAY: 1) Who'd you like to see be the next FCC chairman? 2)
Does your preteen need a cellphone?

MEDIA POLICY

PIPA COALITION URGES PRESIDENT BUSH TO APPOINT PUBLIC INTEREST-MINDED FCC CHAIR
Key members of the Public Interest, Public Airwaves Coalition -- including
the Benton Foundation -- called on President Bush to appoint a public
interest-minded successor to Federal Communications Commission Chairman
Michael Powell. The groups urged the President to consider that the new FCC
Chair should: 1)  be committed to ensuring that the publicly owned airwaves
are managed wisely, 2) understand that access to a diversity of information
and viewpoints is critical to a healthy democracy, 3) make a vigorous
effort to engage the public in the work of the FCC since the decisions the
agency makes affect every family in America, 4) not allow any particular
ideology blind him or her to the realities of the current
telecommunications marketplace, and 5) not confuse corporate welfare with
the general welfare.
[SOURCE: Public Interest, Public Airwaves Coalition]
http://www.campaignlegalcenter.org/FCC-199.html
Text of letter:
http://www.campaignlegalcenter.org/attachment.html/ltr+to+Bush+re+new+FCC+chair.pdf?id=1346
Info on coalition: http://www.pipac.info/

PREPARING CONSUMERS FOR THE END OF THE DIGITAL TELEVISION TRANSITION
The House Telecom Subcommittee announced its witness list for the Thursday
hearing on consumers and the DTV transition. The list includes Lavada
DeSalles, AARP board member; Manuel Mirabal, co-chairman of the Hispanic
Technology & Telecom Partnership; David Arland, Vice
President-Communications & Government Affairs, Thomson Connectivity
Business Unit; and Leonard Roberts, RadioShack CEO.
[SOURCE: Communications Daily]
(Not available online)
http://energycommerce.house.gov/108/Hearings/03102005hearing1451/hearing.htm

DANCING IN THE DARK
[Commentary] I don't necessarily mind the transition to digital, although
truthfully I only watch home improvement shows and Law and Order re-runs,
but what I do mind is that the majority of the American public has no idea
what is headed their way. Large and small analog sets are being blown out
as fast as you can print a Sunday circular and none of these sets come with
a warning to inform the public that they will go black in a year and a
half. That should be criminal, in fact I'd call it fraud, but the
manufacturers and retail outlets are still selling these products, 30
million of them in 2004.
[SOURCE: Bunnie Riedel]
http://www.riedelcommunications.blogspot.com/

SENATE MAY TEE UP INDECENCY BILL
What's this? Indecency in the Senate? After tackling bankruptcy
legislation, a vote on indecency legislation may be next for the Senate --
perhaps even by the end of this week. The House has already passed
legislation that would greatly increase fines for broadcasted indecent
programming. The Senate could vote on that bill, an alternative offered by
Sen Sam Brownback (R-KS) or another alternative not yet introduced by
Senate Commerce Committee Chairman Ted Stevens (R-Alaska) that would extend
indecency regulation to cable and satellite services as well. Insiders say
the odds on which indecency legislation, if any, makes it to the floor were
strongest on the House version, followed by a Stevens substitute, then the
Brownback bill, perhaps with some Stevens language added in.
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
http://www.broadcastingcable.com/article/CA509529?display=Breaking+News&referral=SUPP
(free access for Benton's Headlines subscribers)

NASA SEEKS FCC STAMP ON DEALS
Four years ago, the Network Affiliated Stations Alliance asked the FCC to
resolve disputes over issues such as preemption and affiliates' right to
reject network programming. Since then, each group of affiliates has
resolved contractual disputes with the broadcast TV networks over
preemption rights and other issues. But that's not a reason for the FCC to
not make a ruling, NASA argues: the FCC should weigh in to give permanence
to the agreements. Stations sometimes want to air programming more suitable
to the local community than a particular network show at that time.
Affiliates also want clear authority to reject programs they deem
inappropriate for their communities. That ability became a marquee issue
during congressional hearings on indecency last year. The networks on Feb.
24 reiterated their longstanding request for the FCC to dismiss NASA's
petition.
[SOURCE: Broadcasting&Cable, AUTHOR: Bill McConnell]
http://www.broadcastingcable.com/article/CA509467?display=Breaking+News&referral=SUPP
(free access for Benton's Headlines subscribers)

SENATOR SUGGESTS NIELSEN BILL
Senator Gordon Smith (R-OR) -- Chairman of the Subcommittee on Trade,
Tourism and Economic Development (Commerce) -- said he may craft
legislation on government oversight of the Nielsen ratings service if such
oversight does not currently exist. Members of Congress continued to put
pressure on the Federal Trade Commission to exercise oversight of Nielsen
Media Research, or at least to provide an answer on how much oversight it
does or doesn't already have. Sen Smith wrote FTC Chairman Deborah Platt
Majoras saying the "vital public good," of a fair and accurate ratings
system is "in the hands of a monopoly that is not subject to independent
oversight.... There is currently no entity capable of holding Nielsen to
account."
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
http://www.broadcastingcable.com/article/CA509343.html?display=Breaking+News&referral=SUPP
(free access for Benton's Headlines subscribers)

TELECOM POLICY

FCC CHIEF WARNS VOIP-BACKERS OF ROCK STAR SYNDROME
In his last public speech as chairman of the Federal Communications
Commission, Michael Powell told Internet-based phone service providers that
the industry has been secured against efforts to use regulation to defeat
it. But he warned the emerging industry not to become cocky in its success.
He said that the industry's growing success made it vulnerable to critics
who will increasingly hold it responsible for service outages, security
breakdowns or other disruptions. Chairman Powell compared the position of
Internet communications to a decade ago when the mobile phone industry
became a mainstream communications technology. Flush with success, the
wireless industry ignored customer complaints about network reliability and
invited increased government regulation. It was clear Tuesday that Powell
wants his legacy to include voice over Internet Protocol, software that
lets an Internet connection serve as a telephone line. VoIP calls are free
if exclusively on the Internet, as in PC to PC or, increasingly, from cell
phone to cell phone. It typically costs $20 to $30 a month for unlimited
North American calls to cell and landline phones. The costs are low
because, though completing a call to a traditional phone line costs the
VoIP provider a little, the call itself and most of its journey--via the
Internet--are unregulated.
[SOURCE: Reuters, AUTHOR: Eric Auchard]
[SOURCE: C-Net|News.com, AUTHOR: Ben Charny and Declan McCullagh]
http://www.reuters.com/newsArticle.jhtml;jsessionid=HH5QT1CBC1TGQCRBAELCFFA?type=internetNews&storyID=7844135
http://news.com.com/Powell+makes+final+VoIP+call/2100-7352_3-5604329.html?tag=nefd.top

SUBPLOT IN CONTEST FOR MCI: FAST MONEY VS THE LONG TERM
The fight for MCI hasn't just pitted Qwest against Verizon. It has set
MCI's shareholders -- made up disproportionately of the fast-money,
deal-playing, stock-flipping crowd -- against MCI's board, which claims to
be interested in the "long term." As it stands now, the MCI board has
accepted an offer from Verizon for $6.6 billion (about $20.26 a share)
while Qwest is offering $7.7 billion (about $23.66 a share). But MCI is
trading at $23.73 meaning that investors believe whichever company wins MCI
will have to pay more. The issue is that MCI's owners -- the shareholders
-- want the highest price for their shares at the soonest possible moment.
In all-cash deals, securities law dictates that boards consider only the
short term. A dollar is a dollar, and the highest bidder wins. In
stock-for-stock transactions, things get more complicated, because views of
the future are taken into account. The reality is that not all shareholders
are created equal, even though their money is just as green. Many are
nimble players and bargain-hunters who pounce on "special situations," such
as MCI's bankruptcy. These investors are likely to be long gone when the
hard work of making a Qwest-MCI merger work and grinding out the cost
cutting gets under way. What's really at stake in this debate is the value
of the Qwest stock that MCI shareholders will get. They'll end up with an
ownership stake in a highly indebted company with no wireless network and
the territory of the weakest of the remaining Bell regional phone companies
-- the less populous West. That might not sit well with MCI shareholders
who are in it for the long haul. So how exactly should the board balance
these shareholders' varying interests? In some ways, it doesn't matter. The
shareholders -- both the flippers and the holders -- will have their say at
the time of the vote, and if MCI's stock is where it is now, they'll likely
nix the Verizon deal.
[SOURCE: Wall Street Journal, AUTHOR: Jesse Eisinger]
http://online.wsj.com/article/0,,SB111031496880973776,00.html?mod=todays_us_money_and_investing
(requires subscription)

STUDY: VIDEO HOLDS BUNDLING EDGE
A new study by Knowledge Networks concludes that cable and satellite
providers stand a better chance of adding telecommunications services
customers than telcos do of adding video service customers.
[SOURCE: Multichannel News, AUTHOR: Matt Stump]
http://www.multichannel.com/article/CA509387.html?display=Breaking+News&referral=SUPP
(free access for Benton's Headlines subscribers)
See Knowledge Networks release at:
http://www.knowledgenetworks.com/info/press/news/2005/030805_bundles_mediapost.pdf

CELLPHONES DIAL INTO PRETEEN MARKET
A new cell phone, to be announced nationwide today, is designed just for
pre-teens. It's plastic and has a cool design, flashing lights and big
buttons so kids can call their parents -- or 911 -- with a single touch.
And it has lots of controls that allow parents to limit whom kids can talk
to. But not everyone is cheering the idea. "This isn't a cellphone," says
Paul Saffo of the Institute for the Future. "This is a dog leash. This is a
sucker purchase for every paranoid parent." After the novelty wears off,
kids will find ways to lose their phones or tell their parents they're "out
of range," he predicts. "The parents are going to think they're saving
money by buying this brain-damaged phone for their kids. But all it's going
to do is cause the kids to want a real cellphone that much earlier. As if
they don't want it already."
[SOURCE: USAToday, AUTHOR: Janet Kornblum]
http://www.usatoday.com/printedition/life/20050309/d_cellphone09.art.htm

QUICKLY

SENATE COMMERCE ANNOUNCES SUBCOMMITTEE LEADERSHIP POSITIONS
Senators Ted Stevens (R-AK) and Daniel Inouye (D-HI), Co-Chairmen of the
Senate Committee on Commerce, Science, and Transportation, announced the
Chairmen and Democratic counterparts for the Committee's Subcommittees.
Telecom and media issues will be addressed at the full committee level. All
Members of the Committee except for Senator Stevens and Senator John McCain
(R-AZ) are part of a subcommittee's leadership team. The Subcommittee on
Technology, Innovation, and Competitiveness will be chaired by Senator John
Ensign (R-NV), Senator John Kerry (D-MA) is the Ranking Member.
[SOURCE: US Senate]
http://commerce.senate.gov/newsroom/printable.cfm?id=232973

MEMBERS OF FCC ADVISORY COMMITTEE NAMED
The Federal Communications Commission has announced that thirty-five (35)
members have been appointed to the Consumer Advisory Committee. Of this
number, ten (10) members represent consumer interests; ten (10) members
represent disability interests; two (2) members represent the interests of
state regulators, two (2) members represent tribal interests and eleven
(11) members represent industry interests. (Charles Benton, chairman of the
Benton Foundation, will serve on the Committee.) The Committee's slate is
designed to be representative of the Commission's many constituencies, and
the expertise and diversity selected will provide a balanced point of view
as required by the Federal Advisory Committee Act. All appointments are
effective immediately and shall terminate November 19, 2006, or when the
committee is terminated, whichever is earlier. The purpose of the Committee
is to make recommendations to the Commission regarding consumer issues
within the jurisdiction of the Commission and to facilitate the
participation of consumers (including people with disabilities and
underserved populations, such as Native Americans and persons living in
rural areas) in proceedings before the Commission.
[SOURCE: Federal Communications Commission]
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DA-05-549A1.doc

INTO THE GREAT WIDE OPEN
As in the earliest days, broadcast pioneers are once again talking and
dreaming about broadcast's potential to connect all corners of the earth.
Of course, in the world of broadcasting what is possible is often undone by
what is profitable -- or politically expedient. The advent of spread
spectrum has spawned a subterranean debate about how to manage the radio
spectrum that has broadcasters arguing with technologists, economists
arguing with media critics, and everybody arguing with the FCC about a
radio revolution.
[SOURCE: Columbia Journalism Review, AUTHOR: Jesse Sunenblick]
http://cjr.org/issues/2005/2/sunenblick.asp

FCC SEEKS PUBLIC COMMENT ON WIRELESS BROADBAND REPORT
On March 8, 2005, the FCC's Wireless Broadband Access Task Force released a
report, Connected and on the Go: Broadband Goes Wireless, to the Commission
containing its findings and recommendations. The Task Force concluded that
"the FCC should be vigilant and proactive in identifying and understanding
emerging technologies and in ensuring that existing regulatory policies do
not get in the way of these advances." The Task Force seeks comment by
April 22 on the report's findings and recommendations.
[SOURCE: Federal Communications Commission]
Public notice:
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DA-05-610A1.doc
Report: http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-257247A1.doc

UTAH PASSES UNCONSTITUTIONAL INTERNET CONTENT RULES
Utah's governor is soon expected to sign a bill creating broad new
restrictions over certain adult content online. The bill also contains ISP
blocking requirements similar to those successfully challenged by the
Center for Democracy and Technology (CDT) in Pennsylvania last year. CDT
supports the goal of protecting kids online, but has objected to the
serious constitutional and policy problems created by this bill.
Text of bill: http://www.cdt.org/speech/20050302hb260.pdf
CDT analysis: http://www.cdt.org/speech/20050307cdtanalysis.pdf

WIPO SHUTTING OUT PUBLIC INTEREST GROUPS
Last week, the World Intellectual Property Organization (WIPO) announced
that it will shut out most public interest organizations at two important
meetings devoted to intellectual property and development. As a result,
WIPO delegates from 182 nations will discuss these issues without hearing
from many of the world's best-qualified experts.
http://www.eff.org/news/archives/2005_03.php#003401

MCCAIN FACES CONFLICT-OF-INTEREST FLAP
Sen. John McCain (R-AZ) is catching heat for allegedly helping Cablevision
after the company donated money to tax-exempt group The Reform Institute
which touts McCain's views and has showcased him at events since his
unsuccessful 2000 presidential campaign. Around the time of two donations
totaling $200,000, Sen McCain allowed Cablevision CEO James Dolan to
testify before his Senate committee, wrote a letter of support to the
Federal Communication Commission and asked other cable operators to support
a la carte pricing, which Cablevision is in favor of. McCain's staff says
he was not involved in soliciting the funds and the Senator suggests people
check his record -- he's been for a la carte cable pricing since 1998.
[SOURCE: Multichannel News]
http://www.multichannel.com/article/CA509365.html?display=Breaking+News&referral=SUPP
(free access for Benton's Headlines subscribers)

WHO'S READING THIS E-MAIL
What every employee ought to realize by now is how completely nonprivate
their office e-mail is. In a recent survey of 840 U.S. companies by the
American Management Association, 60% said they now use some type of
software to monitor their employees' incoming and outgoing e-mail, up from
47% in 2001. Other workplace privacy experts place the current percentage
even higher.
[SOURCE: Wall Street Journal]
http://online.wsj.com/article/0,,SB111032415953474003,00.html?mod=todays_us_marketplace
http://online.wsj.com/article/0,,SB111032707833474066,00.html?mod=todays_us_marketplace
(requires subscription)
--------------------------------------------------------------
Communications-related Headlines is a free online news summary service
provided by the Benton Foundation (www.benton.org). Posted Monday through
Friday, this service provides updates on important industry developments,
policy issues, and other related news events. While the summaries are
factually accurate, their often informal tone does not always represent the
tone of the original articles. Headlines are compiled by Kevin Taglang
([email-masked]) -- we welcome your comments.
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(c)Benton Foundation 2005. Redistribution of this email publication -- both
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The Benton Foundation (www.benton.org) works to realize the social benefits
made possible by the public interest use of communications. Bridging the
worlds of philanthropy, public policy, and community action, Benton seeks
to shape the emerging communications environment and to demonstrate the
value of communications for solving social problems.
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Kevin Taglang
Editor, Communications-related Headlines
Benton Foundation
Communications in the Public Interest
1625 K Street, NW 11th Floor
Washington, DC 20006
[email-masked]