Subject: Benton's Communications-related Headlines for 5/02/05

From: Kevin Taglang <[email-masked]>
Date: Mon, 2 May 2005 07:02:11 -0500

BENTON'S COMMUNICATIONS-RELATED HEADLINES for APRIL 2, 2005
For upcoming media policy events, see http://www.benton.org/calendar.htm

POLICYMAKERS
        News From FCC Meeting
        Brownback Pitches White House On Waltzman

DIGITAL TELEVISION
        DTV Transition
        Technology Giants Back Barton Plan

CABLE
        Media Watchdog Challenges FCC
        Activists Aim at Adelphia Deal

CONTENT
        Republican Chairman Exerts Pressure on PBS, Alleging Biases
        Smackdown in Smut War?
        Roberts Leads 'Control' Charge
        Wyden: Kids’ Tier or $500K Fine
        NBC Adopts Content Ratings

INTERNET
        Sources: Martin Opposes SBC’s IP Request
        Cities Brace for Broadband War
        Who Answers 911

MEDIA
        'Big Four' TV Networks Get A Wake-Up Call -- in Spanish
        Newspaper Circulation Continues Decline, Forcing Tough Decisions
        Marketing Folks' New Medium May Be Your PC's Hard Drive
        Sirius to Offer 'Podcast' Show

POLICYMAKERS

NEWS FROM FCC MEETING
FCC Commissioner Michael Copps joked that we were all lucky to make it 
through Chairman Kevin Martin's first meeting "bloodied and bruised." 
Actually, it was a gathering of the nicest group of telecommunications 
regulators since, like, ever. Here's a quick summary of the news coming out 
of the meeting:
* The Commission is asking for public comment on the adequacy of the 
digital signal strength standard and testing procedures used to determine 
whether households are eligible to receive distant broadcast digital 
television (DTV) network signals from satellite communications providers.
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-258480A1.doc
* The FCC began a rulemaking concerning satellite broadcast carriage 
requirements to the noncontiguous United States.
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-258477A1.doc
* Chairman Martin announced his intention to appoint Daniel Gonzalez as the 
Commission's Chief of Staff and that Michelle Carey will join his personal 
staff as Legal Advisor for Wireline Issues.  Chairman Martin also announced 
his intention to appoint Monica Desai as Consumer and Governmental Affairs 
Bureau Chief, Kris Monteith as Enforcement Bureau Chief, and Tom Navin as 
Wireline Competition Bureau Chief.
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-258473A1.doc
* Commissioner Jonathan S. Adelstein announced that Rudy Brioché and Amber 
Danter have been appointed to his staff as Legal Advisor on media issues 
and Confidential Assistant, respectfully.
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-258471A1.doc
Communications Daily reports that Chairman Martin hopes to announce his 
choices for FCC General Counsel and Media Bureau Chief in the next couple 
of weeks -- and to announce his agenda at that time.

BROWNBACK PITCHES WHITE HOUSE ON WALTZMAN
Although Christine Kurth has emerged as the front-runner for the vacant 
seat at the FCC, Senator Sam Brownback (R-KS) late last week sent a letter 
to the White House pushing his former staffer, Howard Waltzman, for the 
spot. Sen Brownback has been an active proponent of increasing fines for 
broadcasters who air indecent programming.
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton & Bill McConnell]
http://www.broadcastingcable.com/article/CA528844?display=Breaking+News&referral=SUPP
(free access for Benton's Headlines subscribers)

DIGITAL TELEVISION

DTV TRANSITION
Setting a firm deadline for digital television transition and clearing the 
700 MHz band of broadcast operations is essential to satisfy public-safety 
spectrum needs, the wireless industry and public safety officials agreed in 
comments to the FCC. But safety officials said that, while valuable, the 
spectrum allocated in the 700 MHz band and elsewhere isn't enough for 
safety-oriented users. The wireless industry disagreed, saying emergency 
response providers’ biggest challenge isn't how much spectrum they have, 
but how best to use spectrum already allocated. They said instead of 
allocating more spectrum, the government should help finance emergency 
response communications networks and advanced public safety solutions. The 
comments came as the FCC prepares a report to Congress assessing spectrum 
needs of federal, state and local emergency response providers. The review 
was required by the 2004 Intelligence Reform & Terrorism Prevention Act. 
The report is due to Congress Dec. 17.
At Congress, technology company Zoran is drawing attention as it promises 
new digital-to-analog converter technology, which it says will aid a hard 
DTV transition deadline. Powered by a single low-cost chip, Zoran says, the 
technology will let any analog set display DTV feeds. Company officials 
told legislative aides that within months it could provide a converter 
retailing for about $67, or as little as $50 in quantity. The converter 
could take the form of a set-top box or be integrated into new analog sets.
Late last week, Congress passed the 2006 budget resolution, an outline for 
committees to work from. They are being asked to produce $4.8 billion more 
for the federal treasury between now and 2010. Spectrum auction revenue is 
a likely target; Senate Commerce Chairman Ted Stevens (R-Alaska) is 
suggesting extending the auction program (now slated to end Sept. 30, 2007) 
and reforming it (without saying how). Setting a hard date for the digital 
TV transition could become a priority -- spectrum currently used for analog 
spectrum that would be returned for auction is valued at $30-$60 billion.
[SOURCE: Communications Daily, AUTHOR: Susan Polyakova; Tania 
Panczyk-Collins & Paul Gluckman]
(Not available online)

TECHNOLOGY GIANTS BACK BARTON PLAN
Taking on the powerful broadcast-TV lobby, a coalition of high-technology 
companies and like-minded trade groups -- including Dell, IBM, Cisco 
Systems, Intel, Microsoft and Qualcomm -- last week announced support for 
the effort in Congress to shut down analog TV no later than Dec. 31, 2006. 
These groups have an interest in the spectrum currently used by 
broadcasters which could be used to provide next-generation 
broadband-wireless services over large geographic areas, and in a more 
cost-effective fashion than possible in higher-frequency portions of the 
radio spectrum. The coalition is well-funded and prepared to wage a battle 
royale with one of the most muscular lobbying groups in Washington, D.C.: 
the National Association of Broadcasters. NAB President Edward Fritts 
responded that the “corporate financial interests of a handful of 
technology companies should not trump the needs of American television 
viewers.” He then ducked inside to avoid a bolt of lighting.
[SOURCE: Multichannel News, AUTHOR: Ted Hearn]
http://www.multichannel.com/article/CA528739.html?display=Policy&referral=SUPP
(free access for Benton's Headlines subscribers)
See NAB response at:
http://www.nab.org/newsroom/pressrel/statements/042705commcommitteeletter.htm

CABLE

MEDIA WATCHDOG CHALLENGES FCC
The Media Access Project is threatening to sue the Federal Communications 
Commission if it signs off on Comcast and Time Warner's $17.6 billion 
acquisition of Adelphia Communications before the agency completes its 
long-delayed overhaul of regulations governing cable mergers. At issue with 
the Adelphia deal is a rule that limits the reach of cable companies. After 
a challenge by Time Warner and other media groups, the U.S. Court of 
Appeals for the District of Columbia in 2001 overturned an FCC rule 
limiting ownership by any one company of cable assets that reach more than 
30% of U.S. subscribers. The agency began revising the cap in September 
2001 but has yet to produce a new rule. Industry observers expect the 
agency ultimately to set the cap at 40% of U.S. subscribers.
[SOURCE: TheDeal.com, AUTHOR: Ron Orol]
http://www.thedeal.com/NASApp/cs/ContentServer?pagename=TheDeal/TDDArticle/TDStandardArticle&bn=newsby%2FMEDIAPUBLISHING.gif&c=TDDArticle&cid=1114711402445

ACTIVISTS AIM AT ADELPHIA DEAL
Media activists, with major union backing, are preparing an all-out assault 
on the Adelphia deal, where Comcast and Time Warner plan to divvy up the 
spoils of their $17.6 billion purchase of the troubled operator. The 
activists concede that blocking the deal is a long shot. But they like 
their chances of winning some government conditions. Some examples: 
forbidding the operators from blocking or restricting competing content 
over their high-speed Internet lines; limiting cluster size in major 
markets; requiring the companies to sell sports networks and other in-house 
programming to rival distributors.
[SOURCE: Broadcasting&Cable, AUTHOR: Bill McConnell]
http://www.broadcastingcable.com/article/CA528752?display=News&referral=SUPP
(free access for Benton's Headlines subscribers)

CONTENT

REPUBLICAN CHAIRMAN EXERTS PRESSURE ON PBS, ALLEGING BIAS
"I frankly feel at PBS headquarters there is a tone deafness to issues of 
tone and balance," says Kenneth Y. Tomlinson, the chairman of the 
Corporation of Public Broadcasting. Tomlinson, a Republican, is 
aggressively pressing public television to correct what he and other 
conservatives consider liberal bias, prompting some public broadcasting 
leaders -- including the chief executive of PBS - to object that his 
actions pose a threat to editorial independence. Tomlinson has 1) 
contracted, without knowledge of the rest of the CPB board, an outside 
consultant to keep track of the guests' political leanings on one program, 
"Now With Bill Moyers," 2) hired the director of the White House Office of 
Global Communications as a senior staff member to draft guidelines 
governing the work of two ombudsmen whom the corporation recently appointed 
to review the content of public radio and television broadcasts, and 3) 
encouraged corporation and public broadcasting officials to broadcast "The 
Journal Editorial Report," whose host, Paul Gigot, is editor of the 
conservative editorial page of The Wall Street Journal. As CPB looks for a 
new chief executive, Tomlinson has made clear to the board that his choice 
is Patricia Harrison, a former co-chairwoman of the Republican National 
Committee who is now an assistant secretary of state.
[SOURCE: New York Times, AUTHOR: Stephen Labaton, Lorne Manly & Elizabeth 
Jensen]
http://www.nytimes.com/2005/05/02/arts/television/02public.html
(requires registration)

SMACKDOWN IN SMUT WAR?
Edward Fritts, the outgoing president of the National Association of 
Broadcasters, told industry members at the association's annual convention 
in Las Vegas last week that an epic lawsuit is brewing over the FCC's 
enforcement of indecency regulations. Fox Television Network, CBS 
Broadcasting, and NBC are each opposing recent FCC decisions, raising the 
possibility that the government will have to take them to court to enforce 
its rulings. Neither side relishes the prospect of a legal showdown, with 
broadcasters worried that programming restrictions would hurt business and 
the FCC fearful of reduced regulatory clout. But networks already are 
laying the groundwork for what could develop into a landmark court case.
[SOURCE: CNN | Money, AUTHOR: Krysten Crawford]
http://money.cnn.com/2005/04/27/news/fortune500/indecency_courts/index.htm

ROBERTS LEADS 'CONTROL' CHARGE
The normally low-profile Brian Roberts, chief executive at low-profile 
cable company Comcast (you may have heard of it),  took center stage last 
week to announce cable's latest educational and technology-blocking 
solutions for parents. At a press conference, Roberts outlined a multipart 
strategy for addressing indecency concerns, but the plan included nothing 
regarding the creation of a family-friendly tier or the offering of more a 
la carte options. The effort represented yet another attempt by cable to 
respond to ongoing calls by some in Congress for more regulation of cable 
content to protect children from easy access to sex, profanity and violence 
on cable systems that reach 73 million households. Unfortunately for cable, 
the response from Washington policymakers was, "Nice, but not enough."
[SOURCE: Multichannel News, AUTHOR: Ted Hearn]
http://www.multichannel.com/article/CA528833.html?display=Top+Stories&referral=SUPP
(free access for Benton's Headlines subscribers)
* Reaction from Senate Commerce Committee Chairman Stevens:
http://commerce.senate.gov/newsroom/printable.cfm?id=236995
* Stevens Pushes Cable Industry On ‘Family Tier’
http://www.njtelecomupdate.com/lenya/telco/live/tb-CBEL1114617867562.html
* Martin Pushes Self-Control
http://www.broadcastingcable.com/article/CA528753?display=News&referral=SUPP
(free access for Benton's Headlines subscribers)

WYDEN: KIDS' TIER OR $500K FINE
Sen. Ron Wyden (D-OR) introduced a bill Thursday that would fine cable 
companies $500,000 per day for failing to provide “child-friendly” tiers of 
programming that included a minimum of 15 channels. Sen Wyden said the bill 
would help parents to filter inappropriate content without regulating every 
channel on cable. The bill would give cable and satellite providers one 
year to comply with the new law. In addition to the tiering requirement, 
Sen Wyden’s bill would force pay TV providers to include channel-blocking 
instructions in monthly bills. In his statement, Sen Wyden insisted that 
his bill would not “dictate how the programming must be offered,” except 
for the 15-channel minimum. The National Cable & Telecommunications 
Association said consumer education was preferable to government 
programming mandates.
[SOURCE: Multichannel News, AUTHOR: Ted Hearn]
http://www.multichannel.com/article/CA528439.html?display=Breaking+News&referral=SUPP
(free access for Benton's Headlines subscribers)
* Wyden Offers ‘Child-Friendly’ Bill
http://www.njtelecomupdate.com/lenya/telco/live/tb-RPWH1114722128699.html

NBC ADOPTS CONTENT RATINGS
NBC said last week that it will immediately begin including content 
descriptors in its TV ratings -- ”V” for violence, “S” for sexual content, 
“L” for vulgar language, “D” for suggestive dialogue and “FV” for fantasy 
violence -- as the other networks do. It will also air the ratings icons 
coming out of each commercial break. The network had been airing age-based 
classifications (“TV-G,” “TV-14,” for example), but it had refused to add 
the descriptors. The network was among the strongest critics of the 
adoption of the ratings system on First Amendment grounds. NBC will also 
boost its public-service-announcement campaign for the ratings system, 
including airing PSAs in all dayparts.
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
http://www.broadcastingcable.com/article/CA528789?display=News&referral=SUPP
(free access for Benton's Headlines subscribers)
* A Good Symbolic Gesture
B&C editorial in support of NBC's move.
http://www.broadcastingcable.com/article/CA528756.html?display=Opinion 
&referral=SUPP
(free access for Benton's Headlines subscribers)

INTERNET

SOURCES: MARTIN OPPOSES SBC'S IP REQUEST
In an order now in the hands of his fellow FCC Commissioners, Chairman 
Kevin Martin is calling for rejection, on procedural grounds, of SBC’s 
request for deregulation of Internet-protocol-platform services built upon 
the company’s $4 billion fiber upgrade, which is designed to reach 18 
million homes by 2007. SBC filed a petition asking that the FCC forbear 
from applying common-carrier regulation to IP-platform services. Because 
the agency has already deregulated many aspects of the Baby Bells’ 
broadband activities, SBC was mainly looking for an exemption from the 
so-called Computer II rules, which require the company to provide 
nondiscriminatory access to competing Internet-service providers such as 
EarthLink and America Online. Chairman Martin’s move to act on the SBC 
petition now was the product of a 15-month statutory deadline facing the 
agency. If the FCC failed to reject SBC’s petition by May 5, it would take 
immediate effect. The Commission currently has four members, two 
Republicans and two Democrats. If Martin fails to round up three votes, a 
2-2 tie would mean that SBC’s petition would take effect by operation of 
law. Sources said Chairman Martin did not want see the FCC let a 
forbearance petition take effect by default.
[SOURCE: Multichannel News, AUTHOR: Ted Hearn]
http://www.multichannel.com/article/CA528784.html?display=Breaking+News&referral=SUPP
(free access for Benton's Headlines subscribers)

CITIES BRACE FOR BROADBAND WAR
Across the country, acrimonious conflicts have erupted as local governments 
attempt to create publicly funded broadband services with faster 
connections and cheaper rates for all citizens, narrowing the so-called 
digital divide. The Bells and cable companies, for their part, argue that 
government intervention in their business is not justified and say they are 
far better equipped to operate complex and far-flung data networks. CNET 
News.com has created an interactive municipal broadband legislative map 
that details the major battlegrounds on the issue. At stake is the fate of 
high-speed Internet access for millions of Americans, hinging on a 
fundamental question of civics and economics--whether the government or 
private industries should take the leading role in building out what's 
considered this generation's critical infrastructure challenge.
[SOURCE: C-Net|News.com, AUTHOR: Jim Hu and Marguerite Reardon]
http://news.com.com/Cities+brace+for+broadband+war/2009-1034_3-5680305.html?tag=nefd.lede
* Cities should think carefully before jumping on WiFi bandwagon
[Commentary] Although city councils and agencies from Philadelphia to San 
Francisco to New York to Chicago to Atlanta to Los Angeles are talking 
about the possibility of creating their own municipal wireless systems, 
Langberg touts privately-run Wi-Fi networks that provide high-speed 
Internet access for about $20/month.
[SOURCE: San Jose Mercury News, AUTHOR: Mike Langberg [email-masked]]
http://www.mercurynews.com/mld/mercurynews/business/technology/11523026.htm

WHO ANSWERS 911
Now more than ever, the emergency phone system is being put to the test. As 
mobile and Internet phone services spread, it's becoming harder for 911 
dispatchers to pinpoint a caller's geographic location, a crucial element 
of 911 and speedy response times. For those using one of the new Voice over 
Internet Protocol, or VoIP, phone services, calls to 911 might not even 
make it to a dispatcher because many of the providers aren't yet able to 
provide direct access into the 911 network. Blame the problems on new 
technology, a lack of money or even corporate politics -- but in the end, 
concerns over public safety are mounting. That has left everyone from phone 
companies to law enforcement agencies to consumer advocacy groups 
scrambling for fixes.
[SOURCE: San Jose Mercury News, AUTHOR: Sam Diaz [email-masked]]
http://www.mercurynews.com/mld/mercurynews/business/technology/11542733.htm

MEDIA

'BIG FOUR' TV NETWORKS GET A WAKE-UP-CALL -- IN SPANISH
The Big Four have been losing viewers, particularly younger ones, to cable 
networks, videogames and the Internet for years. Now, include Spanish 
broadcasters as key competitors. Univision -- yes, Univision -- is 
frequently No. 1 in attracting young adults in prime time this television 
season. According to Nielsen, 19% of the U.S. population aged 18 to 34 
describes itself as Hispanic. The young Hispanics flocking to Univision are 
for the most part bilingual, which means they are tuning in because the 
programming appeals to them -- not just because the actors speak Spanish. 
Some high-ranking executives at the traditional networks, at least 
privately, say they are concerned about Univision's growing dominance in 
big cities where they own highly profitable local stations. With Nielsen 
research showing young Hispanics spend more time watching TV than their 
counterparts, and the Hispanic population in the U.S. exploding, the big 
networks are waking up. Univision's high ratings do not always translate 
into big ad dollars, however. Univision says it finds the fight for ad 
dollars particularly frustrating because independent market surveys 
consistently show it wields enormous influence over its audience, 
generating more trust from U.S. Hispanics than the government and the 
Catholic Church.
[SOURCE: Wall Street Journal, AUTHOR: Brooks Barnes [email-masked] 
and Miriam Jordan [email-masked]]
http://online.wsj.com/article/0,,SB111499732468021826,00.html?mod=todays_us_marketplace
(requires subscription)

NEWSPAPER CIRCULATION CONTINUES DECLINE, FORCING TOUGH DECISIONS
Newspaper circulation numbers to be released today by the Audit Bureau of 
Circulations probably will show industrywide declines of 1% to 3% -- 
possibly the highest for daily newspapers since the industry shed 2.6% of 
subscribers in 1990-91. Long stuck in a slow decline, U.S. newspapers face 
the prospect of an accelerated drop in circulation. The slide is fueling an 
urgent industry discussion about whether the trend can be halted in a 
digital age and is forcing newspaper executives to rethink their 
traditional strategies. Rather than simply trying to halt the decline, 
which can be done readily through discounts and promotions, they're being 
forced to try to "manage" their circulation in new ways. Some publishers 
are deliberately cutting circulation in the hope of selling advertisers on 
the quality of their subscribers. Others are expanding into new markets to 
make up for losses in their core markets. Some are switching to a tabloid 
format or giving away papers to try to attract younger readers. Others are 
pouring money into television and radio advertising and expensive 
face-to-face sales pitches to potential subscribers.
[SOURCE: Wall Street Journal, AUTHOR: Julia Angwin [email-masked] and 
Joseph T. Hallinan [email-masked]]
http://online.wsj.com/article/0,,SB111499919608621875,00.html?mod=todays_us_page_one
(requires subscription)

MARKETING FOLKS' NEW MEDIUM MAY BE YOUR PC'S HARD DRIVE
A host of emerging technologies are helping big advertisers mine new 
avenues into consumers' heads. Internet-delivered video, as it turns out, 
is starting to be one of them.  As of January, 81% of U.S. consumers had 
access to the Internet from some location, a rise from 50% as of January 
1999, according to a study by Arbitron and Edison Media Research. The 
number of people with home Internet access that use a broadband connection 
in January was equal to the number of Americans with a dial-up Internet 
connection at home -- 48%, according to the research. Motion-picture 
advertisers spent about $3.92 billion on ad time and space in 2004, 
according to TNS Media Intelligence. As ad-skipping devices start helping 
more consumers avoid commercials, however, marketers that rely heavily on 
Thursday-night advertising to drive weekend box-office sales could be 
looking for other venues. During 2004, the studios reduced spending on 
network and local television and in newspapers compared with 2003 and 
increased it behind cable, outdoor and U.S. Internet properties.
[SOURCE: Wall Street Journal, AUTHOR: Brian Steinberg 
[email-masked] ]
http://online.wsj.com/article/0,,SB111499810098921843,00.html?mod=todays_us_marketplace
(requires subscription)

SIRIUS TO OFFER 'PODCAST' SHOW
Sirius Satellite Radio is latching onto the "podcasting" phenomenon, 
launching a show later this month that will feature a daily selection of 
the increasingly popular do-it-yourself audio programs. The move by Sirius 
comes just days after Viacom's Infinity Broadcasting unit said it would 
convert a struggling talk radio station in San Francisco to an all-podcast 
format.
[SOURCE: Associated Press, AUTHOR: Seth Sutel]
http://www.mercurynews.com/mld/mercurynews/business/technology/11540902.htm
* An MTV Host Moves to Radio, Giving Voice to Audible Blogs
http://www.nytimes.com/2005/05/02/business/media/02SIRIUS.html
--------------------------------------------------------------
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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Kevin Taglang
Editor, Communications-related Headlines
Benton Foundation
Communications in the Public Interest
1625 K Street, NW 11th Floor
Washington, DC 20006
[email-masked]