Subject: [Benton's Communications-related Headlines] March 30, 2007 (Infrastructure, Sirius)

From: Kevin Taglang <[email-masked]>
Date: Fri, 30 Mar 2007 06:55:32 -0500

** Headlines is taking a break next week. We will return MONDAY, APRIL 9 **
Free Press also collects media and media policy 
related headlines that complement well the work 
we are doing. Media Headlines is a free, daily 
news service by Free Press. It includes links to 
articles found on the Free Press News 
Center.  For more information visit http://www.freepress.net

BENTON'S COMMUNICATIONS-RELATED HEADLINES for FRIDAY MARCH 30, 2007

INFRASTRUCTURE
	U.S. Loses Top Spot in Global Tech Study
	AT&T, Qwest, Verizon win U.S. Govt Telecom Contract

SATELLITE
	XM-Sirius Merger Constitutes a Monopoly
	Sirius to launch TV service in Chrysler 2008 cars

ELECTIONS & MEDIA
	Bush/Clinton say media now harsher on politicians
	Grass Roots Planted In Cyberspace

OWNERSHIP
	Tribune Suitor Zell Is Used to Bucking Trends
	Univision's new ownership takes over

QUICKLY -- Senators Push for More Telecommuting; 
Chessen Joins Copps' Staff; TWC Clarifies 
Testimony; FreeConference.com Sues AT&T For 
Blocked Phone Calls; Hispanics and Media

INFRASTRUCTURE

US LOSES TOP SPOT IN GLOBAL TECH STUDY
[SOURCE: Associated Press, AUTHOR: Bradley Klapper]
European countries and Singapore have surpassed 
the United States in their ability to exploit 
information and communication technology, 
according to a new survey. The United States, 
which topped the World Economic Forum's 
"networked readiness index" in 2006, slipped to 
seventh. Denmark edged Sweden for the top spot, 
while Finland was behind in fourth. The study, 
out Wednesday, largely blamed increased political 
and corporate interference in the judicial 
system. The index, which measures the range of 
factors that affect a country's ability to 
harness information technologies for economic 
competitiveness and development, also cited the 
United States' low rate of mobile telephone 
usage, a lack of government leadership in 
information technology and the low quality of 
math and science education. But Thierry Geiger, 
one of the Forum's economists responsible for the 
report, said the U.S. market environment remains 
the best in the world in terms of how easy it is 
to set up a business, get loans and have access to market capital.
http://www.salon.com/wire/ap/archive.html?wire=D8O58PMG0.html
* The Global Information Technology Report
http://www.weforum.org/en/initiatives/gcp/Global%20Information%20Technology%20Report/index.htm
* Foreign Nations Take Tech Title
http://www.sfgate.com/cgi-bin/article.cgi?file=/c/a/2007/03/29/BUG41OTHE71.DTL&type=tech

AT&T, QWEST, VERIZON WIN US GOVERNMENT TELECOM CONTRACT
[SOURCE: Reuters, AUTHOR: Rachelle Younglai]
The U.S. General Services Administration cast 
Sprint Nextel aside and picked AT&T, Qwest and 
Verizon on Thursday for the largest-ever federal 
telecommunications contract. Government agencies 
are expected to spend at least $20 billion on the 
contract over 10 years, the GSA estimates -- a 
move that will overhaul the government's 
telecommunications services. Under terms of the 
GSA contract, called Networx Universal, agency 
spending could be increased to as much as $48 
billion. The announcement comes after weeks of 
anticipation and years of preparation. The four 
companies have spent millions of dollars 
preparing bids and called on thousands of their 
employees to develop proposals and hammer out the 
details. The failure to include Sprint is seen as 
a huge upset as it has provided telecommunication 
services to U.S. government agencies for 18 years.
http://www.reuters.com/article/technologyNews/idUSWAT00723320070329
* Largest Ever Network Services Acquisition Awarded (GSA press release)
http://www.gsa.gov/Portal/gsa/ep/contentView.do?pageTypeId=8199&channelId=-13259&P=&contentId=22827&contentType=GSA_BASIC
* Government Telecom Deal Omits Sprint
http://www.washingtonpost.com/wp-dyn/content/article/2007/03/29/AR2007032901061.html

SATELLITE

XM-SIRIUS MERGER CONSTITUTES A MONOPOLY
[SOURCE: Consumer Coalition for Competition in Satellite Radio press release]
Gregory Sidak of Criterion Economics has 
concluded a study which demonstrates that the 
proposed merger between XM and Sirius would 
create a monopoly, constituting a likely 
violation of the antitrust laws. Sidak, a former 
Deputy General Counsel for the FCC, was asked by 
the Consumer Coalition for Competition in 
Satellite Radio to determine whether 
subscription-based satellite digital audio radio 
services ("SDARS") are a relevant product market 
for antitrust purposes, and to assess the 
unilateral pricing effects of the proposed merger 
in the relevant product market. Sidak finds that 
1) SDARS are a distinct antitrust product market; 
2) The proposed merge would be anti-competitive 
as (i) it constitutes a monopoly under the most 
reasonable market definition and (ii) even under 
a more expansive market definition the proposed 
merger would increase seller concentration ratios 
to unacceptably high levels; 3) The majority of 
efficiencies identified by XM and Sirius would 
not benefit consumers; and 4) The conditions 
offered by XM and Sirius would not preserve consumer welfare.
http://www.contentagenda.com/articleXml/LN591301420.html?nid=3039
* Consumer Coalition for Competition in Satellite Radio
http://www.c3sr.org/index.asp

SIRIUS TO LAUNCH TV SERVICE IN CHRYSLER 2008 CARS
[SOURCE: Reuters]
Sirius Satellite Radio will launch its backseat 
television service exclusively in several 
DaimlerChrysler cars and minivans later this 
year. Sirius said three live child-themed TV 
channels would be available in 2008 model year 
cars in the Chrysler, Jeep and Dodge lines. Sales 
of those cars will start later this year. The 
satellite radio provider has been promising such 
a service since 2004, but at that time it said 
deals with manufacturers and content providers 
needed to be hammered out. Last November, Chief 
Executive Mel Karmazin said the service would 
launch in 2007. The system will cost about $470, 
which includes the first year of service, when 
packaged with Chrysler's rear seat entertainment 
system in new cars. Customers must subscribe to 
Sirius Satellite Radio. Channels on the service 
include Viacom's Nickelodeon, Walt Disney's 
Disney Channel and Time Warner's Cartoon Network. 
Asked about some of the evening shows broadcast 
on Cartoon Network that are aimed at adults, a 
Sirius spokesman said that the 24-hour 
programming in the car will always be suitable for children.
http://www.reuters.com/article/technologyNews/idUSN2919036120070329
* Chrysler, Sirius to beam kids' TV into '08 models
http://www.usatoday.com/printedition/money/20070330/1b_tvincars30.art.htm

ELECTIONS & MEDIA

PRESIDENTS SAY MEDIA NOW HARSHER ON POLITICIANS
[SOURCE: Reuters, AUTHOR: Sinead Carew]
Former Presidents George H.W. Bush and Bill 
Clinton said on Thursday media coverage of 
politicians had grown harsher and warned that 
this could have a detrimental effect on future 
leaders as the 2008 election draws near. Bush, 
the 41st U.S. president and father of the current 
president, described what he called an 
increasingly adversarial relationship between the 
press and politicians that is "even tougher, 
uglier" than he remembered. "I'm afraid it will 
turn off a lot of good people from politics," he 
said. Clinton said he and Bush had received their 
share of tough questions when they were in 
office, but cited a blurring of the lines between 
sensationalism and mainstream journalism. Clinton 
said a more even discussion of politics could 
come from Internet sites and Web blogs. He cited 
the tendency of blogs to scrutinize one or two 
subjects rather than a full plate of issues. 
"They can do research and get the facts and don't 
have to bad-mouth people. Sometimes they do, but 
they don't have to," Clinton said. "I think all 
these blog sites are creating a whole new 
opportunity for public debate that may revitalize 
our politics in an old fashioned way." Clinton 
said that sensational news coverage could 
interfere with the ability of politicians to make 
good decisions. Clinton and Bush lauded the role 
telecommunications and technology can play in 
improving healthcare, spreading individual 
freedoms and eradicating poverty. And as for 
personal technology, the former presidents said 
they were dedicated to using cell phones or 
wireless devices. "The hour I'm here is about the 
longest I can be away from my Blackberry," Bush said.
http://www.reuters.com/article/domesticNews/idUSN2919944120070329

GRASS ROOTS PLANTED IN CYBERSPACE
[SOURCE: Washington Post, AUTHOR: Jose Antonio Vargas]
If there's a social networking site that John 
Edwards is not a part of, we'd like to know what 
it is, pronto. No one's sure exactly what role 
these sites -- a.k.a. socnets -- will play in the 
upcoming election. But whatever it is, Edwards 
isn't taking any chances. The man's flooding the 
zone. He's on the big ones: Flickr, YouTube, 
Facebook, et al., but he's also on some of the 
most obscure sites -- Blip.tv, 43Things.com. In 
fact, the former senator is signed up in at least 
23 socnets -- more than any other presidential 
candidate. And that's not counting John Edwards 
One Corps, his own networking site that campaign 
officials say has 20,000 members and 1,200 
chapters across the country. All the presidential 
hopefuls are online. Everyone's got a Web site. A 
few hired full-time bloggers and videographers. 
Most have MySpace profiles, just a click away 
from "friending" a supporter. Yet Edwards has 
taken his Internet presence a step further, fully 
exploiting the unknown possibilities (and known 
pitfalls) of the social Web, online strategists 
say. Sen. Barack Obama (D-Ill.), judging by the 
number of friends on MySpace or number of views 
of his YouTube videos, may be the most popular 
online candidate, Republican or Democrat. But 
Edwards arguably has the most dynamic Web 
presence -- he's everywhere, doing everything.
http://www.washingtonpost.com/wp-dyn/content/article/2007/03/29/AR2007032902382.html
(requires registration)

OWNERSHIP

TRIBUNE SUITOR IS USED TO BUCKING TRENDS
[SOURCE: Wall Street Journal, AUTHOR: Sarah 
Ellison [email-masked] and Dennis K. Berman]
Like other real-estate swashbucklers, Sam Zell is 
proud to be a contrarian. It's just as well. To 
complete his come-from-behind effort to buy 
Tribune Co., he'll have to be. As Tribune's 
special committee gathers today for a lengthy 
meeting that could decide the future of the 
company, the leading proposal is an aggressively 
leveraged offer from Mr. Zell, who proposes 
buying the company and transferring control to an 
employee stock ownership plan, an approach rife 
with tax benefits. Like a lot of other 
real-estate investors, he's comfortable buying 
distressed, unfashionable properties, often by 
taking on a substantial debt load and providing 
relatively little equity compared with other 
businesses. Then he spruces up the properties and 
waits for the market to cycle back. But the 
newspaper industry, pounded by Internet 
competition for readers and advertisers, has been 
riven by doubts about whether its problems are 
not cyclical but permanent. In this case, Mr. 
Zell is expected to put in less than $300 million 
of equity, a fraction of the company's total 
value of about $7.9 billion, not counting 
Tribune's existing $4.5 billion of debt. While 
details of his offer remain subject to 
negotiation, the structure would involve a few 
steps. In the first step, Mr. Zell would invest 
his equity and receive convertible preferred 
stock in Tribune. Then Tribune, using borrowed 
funds, would pay out about $17.50 a share to 
shareholders. In the next step, Tribune would 
create an employee share ownership plan. 
Tribune's ESOP could then roll future company 
contributions to employee 401(k) funds into the 
ESOP, effectively providing capital for the 
buyout without increasing Tribune's debt. (At the 
end of 2005, Tribune's retirement-savings plans 
included at least $2.3 billion, of which $610 
million, or 26%, was already invested in company 
stock.) Mr. Zell's strategy for Tribune isn't 
known, although he has said he doesn't plan to 
break up the company, whose assets include a 
string of TV stations and the Chicago Cubs 
baseball team as well as the newspapers. What's 
clear, say real-estate experts, is that he isn't 
making a play for the real-estate assets held by 
Tribune, including the buildings that house the 
Tribune and Los Angeles Times newsrooms. The 
value of Tribune's properties -- estimated at 
less than $700 million -- simply isn't big enough 
to justify being the driver of the deal.
http://online.wsj.com/article/SB117521471477853968.html?mod=todays_us_marketplace
(requires subscription)
* Broad, Burkle Up Offer for Tribune Co.
http://www.washingtonpost.com/wp-dyn/content/article/2007/03/29/AR2007032902644.html
* L.A. duo reenters Tribune auction
http://www.latimes.com/business/printedition/la-fi-tribune30mar30,1,2348106.story?coll=la-headlines-pe-business
* Will Tribune extend deadline again?
[SOURCE: Associated Press]
As Saturday's self-imposed deadline looms for 
Tribune Co. to announce how it plans to increase 
shareholder value, speculation continued Thursday 
that the company might postpone announcing a 
possible sale, spinoff or reorganization.
http://chicagobusiness.com/cgi-bin/news.pl?id=24416

UNIVISION'S NEW OWNERSHIP TAKES OVER
[SOURCE:  Los Angeles Times, AUTHOR: Meg James]
Los Angeles billionaire A. Jerrold Perenchio on 
Thursday waved adios to the business he has spent 
nearly 15 years building into the nation's 
foremost Spanish-language media company, 
Univision Communications. As expected, the sale 
of the Century City-based company for $12.3 
billion closed Thursday, two days after winning 
the blessing of the Federal Communications 
Commission. The new owners, a consortium of 
investors including another Los Angeles 
billionaire, Haim Saban, paid $36.25 a share to 
buy out Univision stockholders, taking the 
company private. The 76-year-old Perenchio — a 
former talent agent, boxing promoter, and music, 
TV and movie producer — collected $1.3 billion 
for his 11.5% stake. That's a hefty return on the 
$33 million that Perenchio paid when he joined 
two Latin American media moguls to buy Univision 
from Hallmark Cards Inc. in 1992 for $550 
million. Since then, the Latino population has 
grown to more than 42 million in the U.S. today. 
The company's flagship, Univision, has become the 
nation's fifth-largest television network, behind 
CBS, Fox Broadcasting, ABC and NBC.
http://www.latimes.com/business/printedition/la-fi-univision30mar30,1,7968164.story?coll=la-headlines-pe-business
(requires registration)

QUICKLY

SENATORS PUSH FOR MORE TELECOMMUTING
[SOURCE: Washington Post, AUTHOR: Stephen Barr]
Sens Ted Stevens (R-Alaska) and Mary Landrieu 
(D-La.) have introduced a bill that would make 
nearly all government employees eligible to 
telecommute. The bill covers employees in the 
executive, legislative and judicial branches. 
Under current practice, employees are assumed to 
be ineligible for telecommuting unless their 
agencies select them for work-at-home programs. 
The Stevens Landrieu bill, the sponsors say, 
would reduce fuel consumption, ease traffic 
congestion and help government workers better 
balance career and family obligations. The most 
recent federal personnel data showed that 41 
percent of civil service employees had been 
deemed eligible to telecommute, but that only 19 
percent were working from home or from a nearby 
telework center at least one day a week.
http://www.washingtonpost.com/wp-dyn/content/article/2007/03/29/AR2007032902043.html
(requires registration)

CHESSEN JOINS COPPS' STAFF
[SOURCE: Federal Communications Commission]
Commissioner Michael J. Copps announced that FCC 
veteran Rick Chessen would be joining his staff 
as Senior Legal Adviser effective April 
5.  Chessen is presently serving as Associate 
Chief of the Media Bureau. In addition to his 
senior legal adviser responsibilities, Chessen 
will be the staff lead in handling media issues, 
although Copps emphasizes that in such an 
important area as media, each member of his team 
is involved in an "all-hands on-deck" approach. 
Chessen, who holds a BA from the University of 
Wisconsin and a JD from Harvard Law School, first 
joined the FCC in 1994.  Among the positions he 
has held, Chessen served as Senior Legal Adviser 
to Commissioner Gloria Tristani from 1997 until 
March 2000.  From 2001 until 2005, he chaired the 
Commission's Digital Television Task Force which 
focused on the myriad regulatory and technical 
issues relating to the DTV transition.  His 
important DTV work was recognized in 2006 when 
the Academy of Digital Television Pioneers 
presented him its President's Award.  In his 
current capacity as Associate Bureau Chief, 
Chessen has been responsible for overseeing the 
Video Services and Engineering Divisions and 
managing numerous media-related proceedings.
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-271911A1.doc

TIME WARNER CABLE CLARIFIES TESTIMONY
[SOURCE: Multichannel News, AUTHOR: Ted Hearn]
A Time Warner Cable official said Thursday that 
subscribers who buy just the basic tier and lease 
an HD set-top box have free access to local TV 
signals in HD, clarifying CEO Glenn Britt’s 
testimony before a House subcommittee the 
previous day. “As an operational point-of-fact, 
Time Warner Cable offers basic-only customers the 
opportunity to receive an HD-capable set-top box 
without any requirement to step up to the digital 
tier of services,” said Mark Harrad, senior vice 
president of corporate communications at Time 
Warner Cable. “With such a box, customers can get 
the HD signals of all channels they would 
otherwise get in standard-definition, including broadcast networks.”
http://www.multichannel.com/article/CA6429385.html?rssid=108

FREECONFERENCE.COM SUES AT&T FOR BLOCKED PHONE CALLS
[SOURCE: TechDirt.com]
[Commentary] Earlier this month, we were 
surprised to hear that various mobile operators 
were blocking phone calls to services like 
FreeConference.com. When you get phone service, 
you expect that the phone service will work to 
any phone number, not the ones that your phone 
provider decides are okay. Oddly, given the 
attention the story received, the FCC has 
remained quiet about it. Apparently, the folks at 
FreeConference.com got tired of sitting around 
and waiting and have decided to sue AT&T, asking 
for an injunction against the company to get it 
to stop blocking calls to the FreeConference.com 
service. It's no secret that services like 
FreeConference.com are costing AT&T money, mainly 
through ridiculous termination fees set up by 
regulators protecting rural telcos. However, AT&T 
should take that up with the regulators, rather 
than simply blocking access to the service. 
Either way, it seems likely that both the FCC and 
the courts will soon be deeply involved in this issue.
http://www.techdirt.com/articles/20070327/154203.shtml

HISPANICS AND MEDIA
[SOURCE: Media Daily News/Online Media Daily]
Two articles based on new data from a Telemundo 
and Experian Simmons Research survey. 1) Online 
Hispanics consume media and technology at a 
higher rate than the general U.S. population. 
Some 80% of Hispanics with Internet access 
connect using broadband, and combining content 
from TV and the Internet is a key factor to 
enriching their media experience. 2) Hispanics 
are avid consumers of all media--more so, in 
fact, than the general U.S. population. And they 
expect TV and Internet content to be delivered in tandem.
http://publications.mediapost.com/index.cfm?fuseaction=Articles.san&s=57853&Nid=28779&p=368626
http://publications.mediapost.com/index.cfm?fuseaction=Articles.san&s=57857&Nid=28776&p=368626
--------------------------------------------------------------
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.
--------------------------------------------------------------
(c)Benton Foundation 2007. Redistribution of this 
email publication -- both internally and 
externally -- is encouraged if it includes this 
message. For subscribe/unsubscribe info email: [email-masked]
--------------------------------------------------------------
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.
--------------------------------------------------------------

Kevin Taglang
Editor, Communications-related Headlines
Benton Foundation
Communications in the Public Interest
1625 K Street, NW 11th Floor
Washington, DC 20006
headlines AT benton DOT org 

____________________________________________________________
You received this message as a subscriber on the list:
     [email-masked]

You are subscribed as: [% user.email %]

Please direct questions or comments about Headlines or your subscription to Kevin Taglang at
[email-masked]

To be removed from the list, send any message to:
     [email-masked]

For all list information and functions, see:
     http://lists.benton.org/lists/info/headlines