Subject: [Benton's Communications-related Headlines] July 6, 2007 (New Broadband Research)

From: Kevin Taglang <[email-masked]>
Date: Fri, 06 Jul 2007 07:20:05 -0500

BENTON'S COMMUNICATIONS-RELATED HEADLINES for FRIDAY JULY 6, 2007

INTERNET/BROADBAND
	Study: Broadband Growth Slowing in U.S.
	True or False: U.S.'s Broadband Penetration Is Lower Than Even Estonia's
	A Report on Internet Speeds in All 50 States
	The Effects of Broadband Deployment on Output and Employment
	FTC Issues Staff Report on Broadband Connectivity Competition Policy
	Proposal by Qwest would help spread of high-speed Internet

CABLE
	Illinois Gov. Signs Franchise Law
	Verizon Gave FCC Last-Minute Digital-Video Pledge

CHILDREN & MEDIA
	Obesity Task Force Pushes Report To September
	FCC Gives CBS More Time To Respond to "Without a Trace" Question

BROADCASTING
	Traditional Radio to Pay for Play?
	Answers Sought to Lowest Unit Rate Question

SPECTRUM POLICY
	Feds snub open source for 'smart' radios
	House Lawmakers Critical of Frontline Wireless Plan

INTERNATIONAL
	Awaiting Internet Access, Remote Brazilian Tribes Debate Its Promise, Peril
	China city tightens Internet control after protest

QUICKLY -- AT&T Imposes Inexplicable Early 
Termination Penalty on iPhone Users; Cool Reception for Conservative Radio

INTERNET/BROADBAND

STUDY: BROADBAND GROWTH SLOWING IN US
[SOURCE: Associated Press, AUTHOR: Anick Jesdanun]
The rate of broadband adoption is slowing in the 
United States, partly because service providers 
already have grabbed the easiest converts, a 
study has found. Price reductions and other 
factors led to 40 percent growth in adoption from 
March 2005 to March 2006. Over the following 
year, growth was a more modest 12 percent, the 
Pew Internet and American Life Project said in a 
report Tuesday. "The low-hanging fruit was picked 
... so you saw a slowdown understandably going to 
2007," said John Horrigan, Pew's associate 
director for research. "You're left with people 
who are less-intense Internet users. They are 
likely to be users who aren't processing a lot of 
bits per month. They don't have the demand for 
high speed." Horrigan, however, said many of the 
Internet users on dial-up simply can't get 
high-speed service, particularly in rural areas. 
About 31 percent of rural Americans have 
broadband at home, compared with 47 percent for the general population.
http://www.poststar.com/articles/2007/07/05/ap/hitech/d8q5as3g0.txt
* Home Broadband Adoption 2007
http://www.pewinternet.org/pdfs/PIP_Broadband%202007.pdf
* High-speed Internet hits home
http://www.chicagotribune.com/business/chi-fri_broadbandjul06,0,6476765.story?track=rss

TRUE OR FALSE: US's BROADBAND PENETRATION IS LOWER THAN ESTONIA'S
[SOURCE: Newsweek, AUTHOR: Steven Levy]
Maybe our proud nation is going through some 
rough spots, but at least we have one shining and 
perpetual triumph: the Internet. People may refer 
to it as the World Wide Web, but its capital is 
Silicon Valley and the United States is the big 
dog tapping the global keyboard. At least that's 
what we thought, until the news broke in April of 
a report by the international Organization for 
Economic Cooperation and Development that ranked 
the high-speed broadband adoption of 30 countries 
in the developed world. The United States was not 
first. Or second, or third. It ranked 15th. 
Although President George W. Bush promised during 
his re-election campaign that all Americans would 
have access to affordable broadband by 2007, many 
rural Americans have no way to connect. It's 
impossible to tell how many, in part because of 
the bizarre way the FCC measures the issue. Many 
rural homes can theoretically get broadband by 
satellite dish, but the cost is high and the 
service not as fast as other alternatives. 
Another problem is that, compared with broadband 
in some other nations, our connections are anything but "high speed."
http://www.msnbc.msn.com/id/19389299/site/newsweek/

A REPORT ON INTERNET SPEEDS IN ALL 50 STATES
[SOURCE: Communications Workers of America]
Between September 2006 and May 2007, nearly 
80,000 people in all 50 states and the District 
of Columbia — nearly all of them with broadband 
connections — have gone to the Speedmatters.org 
site to take an Internet speed test and measure 
how fast their computers can upload and download 
data. This is the first national survey of actual 
Internet speeds, and the results show just how 
the U.S. continues to lag behind other countries. 
The median download speed for the 50 states and 
the District of Columbia was 1.9 megabits per 
second (mbps). In Japan, the median download 
speed is 61 mbps, or 30 times faster than the 
U.S. The U.S. also trails South Korea at 45 mbps, 
Finland at 21 mbps, Sweden at 18 mbps, and Canada 
at 7.6 mbps. The median upload speed from the 
Speedmatters.org test was just 371 kilobits per 
second (kbps), far too slow for patient 
monitoring or too transmit large files such as 
medical records. Why does speed matter? Speed 
defines what is possible on the Internet. It 
determines whether we will have the 21st century 
networks we need to grow jobs and our economy, 
and whether we will be able to support 
innovations in telemedicine, education, public 
safety, and public services to improve our lives 
and communities. Most U.S. Internet connections 
today are not fast enough to permit interactive 
home-based medical monitoring, multi-media 
distance learning, or to send and receive data to run a home-based business.
http://www.speedmatters.org/document-library/sourcematerials/sm_report.pdf
* U.S. Net access not all that speedy
http://www.usatoday.com/tech/news/techpolicy/2007-06-25-net-speeds_N.htm

THE EFFECTS OF BROADBAND DEPLOYMENT ON OUTPUT AND EMPLOYMENT
[SOURCE: Brookings Institute, AUTHOR: Robert 
Crandall, William Lehr and Robert Litan]
This study provides new estimates of the effects 
of broadband penetration on both output and 
employment, in the aggregate and by sector, using 
state level data. The study finds that nonfarm 
private employment and employment in several 
industries, is positively associated with 
broadband use. More specifically, for every one 
percentage point increase in broadband 
penetration in a state, employment is projected 
to increase by 0.2 to 0.3 percent per year. For 
the entire U.S. private non-farm economy, this 
suggests an increase of about 300,000 jobs, 
assuming the economy is not already at “full 
employment.”  At a more disaggregated level, the 
authors find that employment in both 
manufacturing and services industries (especially 
finance, education and health care) is positively 
related to broadband penetration. They also find 
that state output of goods and services is 
positively associated with broadband use, 
although probably because of noise in the 
underlying data, our estimates are not statistically significant.
http://www3.brookings.edu/views/papers/crandall/200706litan.pdf

FTC ISSUES STAFF REPORT ON BROADBAND CONNECTIVITY COMPETITION POLICY
[SOURCE: Federal Trade Commission 6/27]
The Federal Trade Commission’s Internet Access 
Task Force issued a report, “Broadband 
Connectivity Competition Policy,” which 
summarizes the Task Force’s findings in the area 
of broadband Internet connectivity and, in 
particular, so-called network neutrality 
regulation. Based on these findings, and FTC 
staff’s experience with the operation of myriad 
markets throughout the economy, the report 
identifies guiding principles that policy makers 
should consider in evaluating proposed 
regulations or legislation relating to broadband 
Internet access and network neutrality. According 
to Chairman Deborah Platt Majoras, “This report 
recommends that policy makers proceed with 
caution in the evolving, dynamic industry of 
broadband Internet access, which generally is 
moving toward more – not less – competition. In 
the absence of significant market failure or 
demonstrated consumer harm, policy makers should 
be particularly hesitant to enact new regulation in this area.”
http://www.ftc.gov/opa/2007/06/broadband.shtm
* F.T.C. Urges Caution on Net Neutrality
[SOURCE: New York Times 6/27]
http://select.nytimes.com/mem/tnt.html?emc=tnt&tntget=2007/06/28/technology/28net.html&tntemail0=y
(requires registration)
* FTC is neutral on net neutrality
[SOURCE: Washington Post 6/27]
http://www.washingtonpost.com/wp-dyn/content/article/2007/06/27/AR2007062703002.html
(requires registration)
* FTC Stance Against Rules Cheers Broadband Firms
http://online.wsj.com/article/SB118297442020150521.html?mod=googlenews_wsj
(requires subscription)
* How the FTC Mangled Net Neutrality
[Commentary] Every once in a while, it's a useful 
exercise to look under the hood and to see how 
those facile conclusions in the headlines about 
the FTC urging caution on Net Neutrality were 
derived. Just a warning -- it's not pretty.
http://www.tpmcafe.com/blog/coffeehouse/2007/jun/28/how_the_ftc_mangled_net_neutrality
* FTC Report on Broadband Resurrects Freedom of Service Information
http://www.drewclark.com/2007/07/ftc-report-on-broadband-resurrects.shtml
* Center for Public Integrity Spearheads Efforts to Disclose Broadband Data
The Center for Public Integrity's efforts to shed 
light on local Internet availability are having 
an impact in the legislative and regulatory 
debate over broadband. For example, Senate 
Commerce Committee Chairman Daniel Inouye, 
D-Hawaii, last month introduced S. 1492, the 
Broadband Data Improvement Act. The bill would 
require the FCC to supplement the information it 
currently collects about broadband deployment 
with more localized data, including ZIP code plus 
four digits. It calls for the creation of online 
maps showing the availability of high-speed 
Internet services at the census-block level. The 
chairman of the House Energy and Commerce 
Subcommittee on Telecommunications and the 
Internet, Rep. Ed Markey, D-Mass., released 
similar draft legislation in May. It would 
require the Commerce Department's National 
Telecommunications and Information Administration 
to create and publicize a nationwide map in which 
a broadband provider's service locations could be 
searched in detail. The debate around this topic 
has led other government, non-profit and 
business-led efforts to take notice. The FCC is 
currently reconsidering its data-collection 
policies for broadband. Agencies including the 
NTIA and the Federal Trade Commission are also considering getting involved.
http://www.publicintegrity.org/telecom/report.aspx?aid=886
* The Battle To Map American Broadband
http://www.dslreports.com/shownews/The-Battle-To-Map-American-Broadband-85293

PROPOSAL BY QWEST WOULD HELP SPREAD OF HIGH-SPEED INTERNET
[SOURCE: Associated Press 6/30, AUTHOR:Catherine Tsai]
Qwest Communications International Inc. is 
proposing changing a subsidy that helps 
underserved customers get affordable phone 
service so they also can get high-speed Internet 
access. The proposal also would shrink the amount 
of money wireless competitors would get from the 
federal program. The Universal Service Fund, or 
USF, is paid for with a nearly 12 percent 
surcharge on phone bills. It subsidizes phone 
service in rural areas, mountain communities and 
other places where installing equipment and 
making a profit would be difficult. Qwest is the 
primary telephone-service provider in Arizona and 
13 other states, mainly in the West. Denver-based 
Qwest and others say the fund, which has grown to 
about $4 billion, hasn't kept up with the times 
and is subsidizing phone service to areas that no 
longer are unserved or unprofitable to serve. 
Qwest proposes changing the formula for doling 
out USF subsidies to wireless companies so it is 
distributed on a per-household basis, rather than 
per phone. Currently, a wireless company serving 
a home where all four family members have mobile 
phones can get subsidies for four customers, even 
though it is serving one home. Qwest estimates 
the change could trim subsidies paid to wireless 
companies from $1 billion to $500 million 
annually, leaving $500 million to subsidize rural broadband services.
http://www.azstarnet.com/business/189817
* Qwest presents plan to FCC
http://www.neca.org/wawatch/wwpdf/062807_2.pdf
* Qwest Wants Rural Subsidies To Carriers Slashed
http://www.informationweek.com/news/showArticle.jhtml?articleID=200900292

CABLE

ILLINOIS GOV SIGNS FRANCHISE LAW
[SOURCE: Multichannel News, AUTHOR: Linda Haugsted]
Illinois Gov. Rod Blagojevich signed a law which 
assigns franchising authority to the state’s 
Commerce Commission. The governor said the bill, 
SB678, will provide consumers with more providers 
while requiring incumbent operators to provide 
more reliable, on-time service. In addition to 
shifting franchising authority to state 
officials, the bill introduces a number of new 
customer service rules, such as the 
implementation of standards for installation, 
repair, telephone response time, billing, 
collections and services for the disabled. While 
the transfer of state authority took effect when 
the governor signed the bill July 3, 
implementation of service quality standards for 
incumbents will not begin until Jan. 1, 2008. 
Illinois is the 21st state to approve statewide 
regulation of cable franchising.
http://www.multichannel.com/article/CA6457513.html

VERIZON GAVE FCC LAST MINUTE DIGITAL-VIDEO PLEDGE
[SOURCE: Multichannel News, AUTHOR: Todd Spangler]
Verizon Communications on June 29 informed the 
Federal Communications Commission that it would 
eventually move to all-digital video 
distribution, hours before the agency issued an 
order exempting the phone company from the 
integrated set-top ban based on that commitment. 
Late last Friday, the FCC’s Media Bureau granted 
waivers of the July 1 ban to Verizon and about 
120 other video providers that currently have 
all-digital networks or have promised to convert 
to all-digital transmission by Feb. 17, 2009. 
Meanwhile, the agency denied requests by the 
National Cable & Telecommunications Association 
and 10 cable operators. The FCC said all-digital 
video providers will support the agency’s mandate 
requiring TV broadcasters to provide digital-only 
transmission by February 2009. All-digital cable 
and telco TV networks also will “enable expanded 
service offerings, promote efficient use of the 
spectrum, deliver broadband services, spur 
competitive entry and expand universal service,” the FCC said.
http://www.multichannel.com/article/CA6457745.html
* AT&T: No Need For FCC Set-Top Waiver
http://www.multichannel.com/article/CA6457755.html

CHILDREN & MEDIA

OBESITY TASK FORCE PUSHES REPORT TO SEPTEMBER
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
The Task Force on Media & Childhood Obesity has 
asked for and received a delay in the deadline 
for getting a report to Congress. The July 11 
target date has now been pushed to September. 
Apparently,  Sens Tom Harkin (D-Iowa) and  Sam 
Brownback (R-Kansas), who spearheaded the task 
force's creation, along with FCC Chairman Kevin 
Martin and Commissioners Deborah Taylor Tate and 
Michael Copps have agreed to extend the task 
force's work. The report is to identify steps to 
rein in marketing of snack foods to kids and 
promoting healthier diets and exercise. TVWeek 
reports that the extension indicates that the 
nation’s biggest food and beverage marketers are 
preparing to unveil major new concessions in how 
they market food to kids on TV on July 18 at a 
Federal Trade Commission/Department of Health & Human Services workshop.
http://www.broadcastingcable.com/article/CA6457602.html
* FCC press release
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-274907A1.doc
* Obesity Report Delayed as Advertisers Prepare Their Plan
http://tvweek.com/news/2007/07/obesity_report_delayed_as_adve.php

FCC GIVES CBS MORE TIME TO RESPOND TO "WITHOUT A TRACE" QUESTION
[SOURCE: Broadcasting&Cable 7/5, AUTHOR: John Eggerton]
FCC has given CBS until August 10 to respond to a 
letter from the Commission (it was released June 
27) looking for some answers related to CBS’ 
airing of a "Without a Trace" episode back in 
2004 that drew a proposed multimillion-dollar 
indecency fine. The Parents Television Council 
challenged the license of CBS’ KUTV Salt Lake 
City claiming CBS did not honor the terms of a 
consent decree following the FCC’s issuance of a 
proposed fine against the show. The FCC wants CBS 
to document its compliance with the decree. CBS 
says it didn't violate the terms of the November 
2004 agreement and will make that clear in its 
response. The consent decree cleared the FCC’s 
books of all indecency complaints and findings 
except the Janet Jackson Super Bowl reveal.
http://www.broadcastingcable.com/article/CA6457447.html

BROADCASTING

TRADITIONAL RADIO TO PAY FOR PLAY?
[SOURCE: BusinessWeek, AUTHOR: Olga Kharif]
First it was online music swapping, then Web 
radio. Now, the music industry is taking aim at 
something really big: traditional radio, a $20 
billion industry that has, in its 80-plus years 
of existence, played songs without paying music 
labels and singers a dime. Aside from the 
occasional royalty scuffle across those decades, 
the music industry has always been happy to let 
radio stations play songs for free, treating it 
as a necessary marketing expense for the songs 
and albums they wanted listeners to buy. In fact, 
in the past, some deejays had been accused of 
illegally accepting payments from record labels 
for spinning certain songs. But with more music 
lovers consuming their passion over the Internet 
and through satellite broadcasters XM Satellite 
Radio (XMSR) and Sirius Satellite Radio (SIRI), 
the free exposure offered by FM and AM radio is 
no longer quite so valuable. And with online file 
swapping eating away at revenue despite the legal 
victories in that arena, the music industry wants 
all broadcasters to pay for its product.
http://www.businessweek.com/technology/content/jul2007/tc2007073_639316.htm?campaign_id=rss_tech
* Congress urges peace talks in Net radio conflict
http://news.com.com/Congress+urges+peace+talks+in+Net+radio+conflict/2100-1028_3-6193933.html?tag=html.alert.hed
* Analysis: A Reprieve for Internet Radio?
http://www.pcmag.com/article2/0,1895,2154524,00.asp

ANSWERS SOUGHT TO LOWEST UNIT RATE QUESTION
[SOURCE: tvnewsday]
The FCC on Thursday announced that it is 
soliciting comments on a June 19 request by state 
broadcasting associations. The groups want the 
FCC to rule on “whether a broadcast station 
participating in any of [three specific Internet 
sales programs] must take into consideration the 
‘sale price’ of the airtime sold to advertisers 
under these programs when computing the station’s 
lowest unit rate” as it applies to political 
advertising. Comments on the matter (Docket MB 
07-137) are due Aug. 6, with reply comments due by Aug.21.
http://www.tvnewsday.com/articles/2007/07/05/daily.8/

SPECTRUM POLICY

FEDS SNUB OPEN SOURCE FOR 'SMART' RADIOS
[SOURCE: C-Net|News.com, AUTHOR: Anne Broache]
Mobile-gadget makers are starting to take 
advantage of software-defined radio, a new 
technology allowing a single device to receive 
signals from multiple sources, including 
television stations and cell phone networks. But 
a new federal rule set to take effect Friday 
could mean that radios built on "open-source 
elements" may encounter a more sluggish path to 
market--or, in the worst case scenario, be shut 
out altogether. U.S. regulators, it seems, 
believe the inherently public nature of 
open-source code makes it more vulnerable to 
hackers, leaving "a high burden to demonstrate 
that it is sufficiently secure." If the decision 
stands, it may take longer for consumers to get 
their hands on these all-in-one devices. The 
nascent industry is reluctant to rush to market 
with products whose security hasn't been 
thoroughly vetted, and it fears the Federal 
Communications Commission's preference for 
keeping code secret could allow flaws to go 
unexposed, potentially killing confidence in their products.
http://news.com.com/Feds+snub+open+source+for+smart+radios/2100-1041_3-6195102.html?tag=nefd.lede

HOUSE LAWMAKERS CRITICAL OF FRONTLINE WIRELESS PLAN
[SOURCE: Multichannel News 7/2, AUTHOR: Ted Hearn]
A bipartisan group from the House Energy and 
Commerce Committee is calling on the Federal 
Communications Commission to reject a plan that 
would require a spectrum-auction winner to build 
a broad public-safety network, offer nothing but 
wholesale service and guarantee that the network 
complied with network-neutrality principles. 
“Let’s not mistake this proposal for what it is: 
yet another attempt to get valuable spectrum on 
the cheap,” the House group said in a June 29 
letter to FCC Chairman Kevin Martin. The letter 
was signed by 16 lawmakers -- 12 Republicans and 
four Democrats. Leading Republicans on the letter 
were Reps. Joe Barton (Texas) and Fred Upton 
(Mich.). Prominent Democrats included Reps. Gene 
Green (Texas) and Charles Gonzalez (Texas).
http://www.multichannel.com/article/CA6456963.html?rssid=196

INTERNATIONAL

AWAITING INTERNET ACCESS, REMOTE BRAZILIAN TRIBES DEBATE ITS PROMISE, PERIL
[SOURCE: Washington Post, AUTHOR: Monte Reel]
In the past several months, an information 
technology boom has started to spread through the 
Indian villages that dot Brazil's countryside, 
from the Amazon rain forest to the Pantanal 
wetlands. The federal government this year 
announced a new program to provide satellite 
Internet access to 150 remote communities, in 
hopes that they will be better equipped to 
protect themselves against illegal logging and 
other threats to their culture. Industry giants 
such as Google and Intel also have recently 
launched projects to provide high-tech assistance 
in the area. The race to wire remote communities 
is resulting in a new category of discussion at 
tribal meetings. "All of the Xavante villages in 
this reserve are in the middle of a debate right 
now to decide whether they think Internet access 
will be a good thing or a bad thing," said Romulo 
Tsereruo, 37, who teaches in the school building 
here. "In this village, we've already decided: We want it."
http://www.washingtonpost.com/wp-dyn/content/article/2007/07/05/AR2007070501866.html
(requires registration)

CHINA CITY TIGHTENS INTERNET CONTROL AFTER PROTEST
[SOURCE: Reuters]
A Chinese city planned to censor online chatroom 
exchanges and ban anonymous postings after 
residents used the Internet to organize a mass 
protest against a chemical plant, Chinese media 
reported on Friday. Under a new city regulation, 
online users would have to use their real names 
when posting messages on more than 100,000 Web 
sites registered in Xiamen, a port city in 
southeastern coastal Fujian province, the Beijing Youth Daily said.
http://www.reuters.com/article/internetNews/idUSPEK4156920070706

QUICKLY

AT&T IMPOSES INEXPLICABLE EARLY TERMINATION PENALTY ON iPHONE USERS
[SOURCE: HearUsNow.org, AUTHOR: Bob Williams]
[Commentary] All those sleek new iPhones that 
have been flying off the shelves at $600 a pop 
have a built-in feature that isn't being touted 
by Apple or network provider AT&T -- an 
inexplicable early termination penalty of $175. 
Wireless phone carriers have imposed such 
penalties for years, arguing that they are 
necessary to help make up for lost revenues from 
discounted or free phones they use to coax 
customers into signing long term contracts. But 
Apple and AT&T are not offering any sort of 
discount on the highly-coveted iPhones. Which 
brings us to the other -- and probably more 
important -- reason wireless carriers impose 
early termination penalties on their customers. 
It's because long term contracts with early 
termination penalties are devastatingly effective 
in keeping customers from switching carriers.
http://www.consumersunion.org/blogs/hun/2007/07/post.html

COOL RECEPTION FOR CONSERVATIVE RADIO
[SOURCE: Washington Post, AUTHOR: Paul Farhi]
Conservative talk radio may be "running America," 
but it doesn't have a big audience in Washington, DC.
http://www.washingtonpost.com/wp-dyn/content/article/2007/07/05/AR2007070501912.html
(requires registration)
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Communications-related Headlines is a free online 
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