[BC] [Fwd: [Benton's Communications-related Headlines] August 30, 2006]

Wed Aug 30 09:43:48 CDT 2006

I think this is an EXCELLENT newsletter! This particular issue has several
broadcast related items.

Harold

---------------------------- Original Message ----------------------------
Subject: [Benton's Communications-related Headlines] August 30, 2006
From:    "Kevin Taglang" <headlines at benton.org>
Date:    Wed, August 30, 2006 5:14 am
To:      headlines at lists.benton.org
--------------------------------------------------------------------------

"The behavior of profit seeking firms is predictable using
undergraduate level economics and a willingness to embrace empirical
data over theory: incumbents will do what they can to block the
emergence of potentially disruptive new entrants, and -- absent some
form of government action -- they will succeed."
	-- MAP's Harold Feld discussing the FCC's current spectrum auction

BENTON'S COMMUNICATIONS-RELATED HEADLINES for WEDNESDAY AUGUST 30, 2006
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For upcoming media policy events, see http://www.benton.org

EMERGENCY COMMUNICATIONS
	FCC Must Ward Off FEMA
	Free voice mail during disasters needed, FCC told
	How Mass Media Use Crisis Communications for Political Gain

SPECTRUM
	FCC Speeds up Bidding in Wireless Sale
	Spectrum and Net Neutrality Lessons from the FCC's Spectrum Auction
	AT&T Signs Municipal Wi-Fi Deal

INTERNET/BROADBAND
	Verizon's Billing Brouhaha
	A third way for net neutrality
	Competing for Legislators
	Injunction Issued Against Utah Internet Censorship Law

MEDIA OWNERSHIP
	Universal Music Plans Venture to Challenge iTunes
	Hubbard, Weinstein Buy Ovation

POLICYMAKERS
	State Dept: Tomlinson Misused Office

QUICKLY -- PTC Challenges KUTV License; Guild Gets Face Time With FCC
Dems; California Assembly OKs Limiting Drivers' Cell Phone Use

EMERGENCY COMMUNICATIONS

FCC MUST WARD OFF FEMA
[SOURCE: Pittsburgh Tribune-Review, AUTHOR: Dimitri Vassilaros]
[Commentary] There is at least one government agency that deserves
recognition for its very unbureaucrat-like work during Hurricane
Katrina. While the media rightly focused on FEMA's disgraceful
performance -- not delivering on promised water, food, buses, troops,
diesel fuel, rescue boats and other needs -- there was almost no
mention of the astonishingly good work by the Federal Communications
Commission. Almost immediately after Hurricane Katrina subsided, the
commission notified all communications providers of expedited
treatment for requests of special temporary authority (STA). The FCC
granted more than 90 STA requests and more than 100 temporary
frequency authorizations for emergency workers to provide wireless
and broadcast service in the affected areas and shelters. The
requests usually were granted within four hours, all within 24. The
agency also waived many rules to enable telephone companies to
re-route traffic, disconnect and reconnect lines and switch
long-distance providers so that consumers' phone calls could get
through. FEMA now is trying to get the FCC under its control during
emergencies. If FEMA wins this bureaucratic turf fight making the FCC
answerable to the geniuses who redefine miscommunication, it would be
an unspeakable Category 5 disaster.
http://www.pittsburghlive.com/x/pittsburghtrib/opinion/columnists/vassilaros/s_467743.html

FREE VOICE MAIL DURING DISASTERS NEEDED, FCC TOLD
[SOURCE: New Orleans Times-Picayune, AUTHOR: Bruce Alpert]
A former AT&T executive is asking the Federal Communications
Commission to require phone companies to provide free voice mail
service at times of major disasters like Katrina. After Katrina, tens
of thousands of people endured the emotional trauma of not knowing
where loved ones were, or even if they were alive, Tom Evslin, the
former phone company executive, said in his petition to the FCC.
First responders, he said, spent significant time searching for
people who had already made it safely out of their homes -- time that
could have been better used rescuing those stranded on rooftops in
New Orleans and other Gulf Coast communities. According to Evslin,
those problems could have been averted had people been given access
to voice mail. Even if their phone service was disrupted, as occurred
across the New Orleans area after Katrina struck, callers could still
access their voice mail, Evslin said. That would enable people who
left their homes to call a toll-free number, type in their home phone
numbers and passwords and then leave a voice mail greeting that
informed callers that they were safe and where they were staying. In
turn, they could access messages from friends and family. Many people
already pay extra for such voice-mail service, or get it as part of a
package of services, he said. The systems are usually set up in
centralized locations, and ideally should be far away from the
location of most of the provider's customers, Evslin said. Many
people, particularly those without cell phones, either don't have
voice-mail service for their wire-line phone, or rely on separate
answering machines or phones with answering machines built in. They
are useless when phone service is disrupted.
http://www.nola.com/news/t-p/index.ssf?/base/news-1/11568299108830.xml&coll=1

HOW MASS MEDIA USE CRISIS COMMUNICATIONS FOR POLITICAL GAIN: THE
BROADCAST INDUSTRY, 9/11 AND HURRICANE KATRINA
[SOURCE: J.H. Snider]
The paper describes how the broadcast industry has used its emergency
information service claims -- one of its most important type of
public interest claims -- to lobby for favorable regulations and laws
from the FCC and Congress.  Both Congress and the FCC are currently
considering ways to bolster America's emergency information
system.  Accordingly, the broadcast industry, as well as other
telecommunications industries, have sought to reframe their
long-standing lobbying agendas to take advantage of this
concern.  The resulting self-serving framing, however, may lead to
harmful policy outcomes.  Snider critiques that framing and
recommends a new telecom model to enhance America's emergency
information system including: 1) the government should foster free,
local broadcast satellite service so broadcast satellites can deliver
free and local emergency information, and 2) the government should
bypass the proliferating emergency alert middleman and send emergency
alerts directly to citizens as well as to the middlemen.
http://s173754652.onlinehome.us/MyWritings/06-08-30--APSA--HowMassMediaUseCrisisCommunicationsForPoliticalGain.pdf

SPECTRUM

FCC SPEEDS UP BIDDING IN WIRELESS SALE
[SOURCE: Reuters, AUTHOR: Jeremy Pelofsky]
The Federal Communications Commission on Tuesday accelerated the
bidding in its auction of licenses for advanced wireless services,
which has already raised more than $13.6 billion after 15 days. The
Commission added two rounds of bidding per day to bring the daily
total to six rounds and cut the time of each round in half to 30
minutes, an effort to complete the sale as companies vie for 1,122
licenses around the country. The auction continues until there are no
new bids, withdrawals or other activity. After 58 rounds, T-Mobile
USA, the No. 4 U.S. wireless carrier and a unit of Germany's Deutsche
Telekom, provisionally had the highest bids for 118 licenses with
offers of almost $4.2 billion. No. 2 wireless carrier Verizon
Wireless is second in the bidding, with provisionally winning bids of
$2.8 billion for four licenses. While traditional wireless companies
have largely dominated the auction, a group that includes the major
cable television providers and No. 3 wireless carrier Sprint Nextel
Corp. is in third place based on provisionally winning bids. That
group, SpectrumCo LLC, includes Comcast, Time Warner and Cox
Communications and has the highest bids for 133 licenses with offers
of almost $2.3 billion.
http://today.reuters.com/news/newsArticle.aspx?type=technologyNews&storyID=2006-08-29T215109Z_01_N29423445_RTRUKOC_0_US-TELECOMS-WIRELESS-AUCTION.xml&archived=False

SPECTRUM AND NET NEUTRALITY LESSONS FROM FCC'S RECENT SPECTRUM AUCTION
[SOURCE: Public Knowledge, AUTHOR: Harold Feld, Media Access Project]
[Commentary] Although the FCC's spectrum auction will not formally
close for another month or so, the likely winners of the licenses
will be the incumbent wireless companies and SpectrumCo LLC. The much
ballyhooed hope that the this auction would produce a new, disruptive
competitor for either mobile phone service or broadband service died
when the DBS partnership of DIRECTV and Echostar exited the auction
after getting systemically outbid by the incumbents and Spectrum Co.
Of course, this outcome was entirely predictable to anyone who has
actually looks at the economics of bidding in open, ascending
spectrum auctions. I pushed the FCC for anonymous bidding rules back
in the spring and have argued that we should not allow incumbent
cable operators to bid on spectrum if we want competition. The FCC
has a chance to learn some lessons here for the upcoming auction of
returned analog television spectrum, the so called "700 MHz Auction."
Unfortunately, it will be hard to convince the FCC that an auction
with almost 170 bidders raising close to the maximum anticipated $15
billion in revenue was a failure because it further entrenched the
incumbents and failed to produce a meaningful new competitor. For
those devoted to the dogma of the perfection of "the market" as the
ultimate arbiter, the failure of a new competitor to emerge indicates
that there is no need for another competitor or that another
competitor is not economically viable (the notion of strategic
behavior to preserve market dominance apparently being a heresy to be
firmly rejected by orthodox free market theologians).
http://www.publicknowledge.org/node/607

AT&T SIGNS MUNICIPAL WI-FI DEAL
[SOURCE: Wall Street Journal, AUTHOR: Peter Grant peter.grant at wsj.com]
AT&T, trying to break into the business of providing wireless
broadband networks to municipalities, has signed its first customer:
the city of Springfield, Illinois. Under the three-year deal,
announced by Springfield Mayor Timothy Davlin Tuesday, AT&T will
build a so-called "Wi-Fi" network that will cover a 25-square mile
area around the city center. In parts of the city outside- that area,
residents and businesses will be able to connect if they have a
special antenna on their roofs. AT&T will provide a free tier of
service at a relatively slow speed and charge for service at faster
speeds. AT&T, the major telephone company in Springfield, also will
offer its high speed Internet subscribers special deals to use the
Wi-Fi network. The deal must still be approved by the Springfield
city council. Some details have not been worked out, like how much
AT&T will charge and how many hours a day the free service will be
available. AT&T will pay for the cost of the network.
http://online.wsj.com/article/SB115687644979448591.html?mod=djemTECH
(requires subscription)
* AT&T, in Shift, Sets Pact For City Wi-Fi Network
http://online.wsj.com/article/SB115687644979448591.html?mod=todays_us_marketplace
(requires subscription)
* AT&T eyes municipal Wi-Fi deals, 1st in Illinois
http://today.reuters.com/news/newsArticle.aspx?type=technologyNews&storyID=2006-08-30T004642Z_01_N29457012_RTRUKOC_0_US-TELECOMS-ATT-WIFI.xml&archived=False

INTERNET/BROADBAND

VERIZON'S BILLING BROUHAHA
[SOURCE: BusinessWeek, AUTHOR: Catherine Holahan]
Verizon is now under fire from consumer groups and scrutiny by the
Federal Communications Commission for certain fees included on
Internet customer bills. The flap underscores the challenges facing
phone companies as they strive to wring profit from broadband
businesses while keeping customers from opting for comparable
services provided by cable companies. Verizon and rivals such as
BellSouth had an opportunity to reduce phone bills when the
government did away with fees charged to phone companies that had
been intended to subsidize phone service in rural and other
hard-to-serve areas. A year ago, the FCC said it would phase out the
"Universal Service Fund" charge for providers of wireline broadband
because it hampered the telecom industry's ability to compete with
cable providers, which do not pay such subsidies. The government
officially stopped assessing the fee, typically passed onto consumer
bills, this August. But BellSouth and Verizon customers didn't
immediately get the hoped-for relief. Consumer groups complained that
the telecommunications giants were unfairly raising fees by refusing
to pass on their savings to consumers. Jason Oxman, a spokesman for
the Competition Coalition, says that the FCC took away the fee with
the expectation that it would allow Verizon and BellSouth to offer
more competitive prices, not keep them the same. BellSouth relented,
hoping for smooth regulatory sailing for its planned takeover by
AT&T. The company dropped a $2.97 monthly fee for high-speed
Internet. But Verizon dug in. The company says it would have raised
prices if it hadn't gotten the regulatory relief, so the elimination
of the USF fees lets it keep prices pretty much unchanged. Verizon
prices DSL service competitively, hoping to recoup costs with other
products, such as phone and TV services, says spokesman Eric Rabe.
Verizon profits more from customers who subscribe to two or more of
its services because each additional connection only adds marginally
to the cost of supplying an original phone line.
http://www.businessweek.com/technology/content/aug2006/tc20060829_789565.htm?chan=technology_technology+index+page_today%27s+top+stories
* IP Democracy: Free Market Economics 101 Courtesy of Verizon
http://www.ipdemocracy.com/archives/2006/08/29/index.php#001891

A THIRD WAY FOR NET NEUTRALITY
[SOURCE:  Financial Times, AUTHOR: Eli Noam, Columbia University]
[Commentary]  "Net neutrality" has been a hot topic in Washington,
but the problem is that the term is "like an inkblot into people
project their fears and hopes." Noam identifies seven meanings of Net
Neutrality and highlights two: 1) No selectivity by the carriers over
content they transmit and 2) No blocking of the access of users to
some websites. Perhaps the best way to analyze the issues is to view
it as a triangle involving three parties: the providers of Internet
content and applications, such as Google, Yahoo, HBO, and Vonage; the
end-users of that content (some of whom are also providers at the
same time) like you and me; and the electronic pipes that connect
between them and transport the information packets, such as Comcast
and AT&T. These pipes come in two different sections: 'last-mile
pipes' that reach individual end-users, and 'middle-pipes' that
constitute the local and national network system and serve numerous
users simultaneously. It is important to distinguish between those
two different pipes. The question then is what kind of control the
pipes can exercise over the content, prices, and quality of
information packets that are sent by providers to end-users, and over
the access of end-users to the providers. Noam offers a "third way"
solution for Net Neutrality. He concludes: "This arrangement, by
separating the last-mile pipe where potential problems exist, from
the middle-pipes, where they do not, provides both openness and
minimal intervention. It responds to both sides' legitimate problems,
not as a 'divide-the-baby-in-half' compromise, but as a genuinely
better system."
http://www.ft.com/cms/s/acf14410-3776-11db-bc01-0000779e2340.html
(requires subscription)

COMPETING FOR LEGISLATORS
[SOURCE: San Francisco Chronicle, AUTHOR: Editorial Staff]
[Commentary] AT&T and Verizon spent $19.7 million -- $16,000 per
California state legislator -- to win passage of AB2987, a bill that
will allow the phone companies to apply for a single statewide
franchise license to compete for cable customers. The bill
streamlines the approval process for the phone companies who want to
enter the cable business -- though they will be required to pay
local-franchise fees and the local governments will maintain control
over the installation of the video network. An amendment was added to
satisfy existing cable companies' concerns by allowing them to obtain
statewide-franchise fees when a phone companies initiates cable
service in their territory. If the bill works as advertised,
Californians soon will have more options for cable TV service. There
is no guarantee that prices will come down, of course, but the
history of cable has shown rather conclusively that the system of
heavy-handed local regulation is not the route to cheaper prices,
superior customer service or rapid arrival of dazzling new
technologies. The bill cleared the Assembly on a 77-0 vote and is
expected to reach Gov. Arnold Schwarzenegger's desk this week. It's a
sorry commentary on the culture of Sacramento that it took so many
lavish dinners, campaign donations, free tickets and golf outings to
get this done. Our legislative leaders milked this issue, which could
have advanced on its merits alone, for all it's worth.
http://www.sfgate.com/cgi-bin/article.cgi?file=/chronicle/archive/2006/08/29/EDG21KQPM71.DTL

INJUNCTION ISSUED AGAINST UTAH INTERNET CENSORSHIP LAW
[SOURCE: Center for Democracy and Technology]
A federal court in Utah has blocked enforcement of an Internet
censorship bill that CDT, the American Civil Liberties Union, and a
broad coalition of bookstores, independent artists and ISPs
challenged as unconstitutional in 2005. The court entered a
stipulated preliminary injunction that prevents the enforcement of
statutory provisions amended by Utah House Bill 260 (including a
vague "harmful-to-minors" provision as it might apply to Internet
communications).  The lawsuit argues that H.B. 260 is
unconstitutional under the First Amendment and the Commerce
Clause.  The law would force web sites to remove lawful content from
the Internet or face prosecution. It would also require ISPs to block
access to adult sites in such a way that many innocent sites would
likely also be blocked.  August 29, 2006
Injunction: http://www.cdt.org/speech/20060829utah.pdf
Original CDT Complaint (June 09, 2005):
http://www.cdt.org/speech/utahwebblock/20050609hb260complaint.pdf

MEDIA OWNERSHIP

UNIVERSAL MUSIC GROUP AND AN ONLINE SITE PLAN A JOINT VENTURE TO
CHALLENGE ITUNES
[SOURCE: New York Times, AUTHOR: Eric Pfanner]
A new online music company said yesterday that it would make a huge
catalog of songs from the world's largest record company, the
Universal Music Group, available for consumers to download free. The
company, called SpiralFrog, said its intention was to wean music
fans, especially young people, away from illegal downloads and pirate
music sites by offering a legitimate source, supported by advertising
instead of download fees. SpiralFrog is the latest to offer a
challenge to Apple Computer's hugely successful iTunes service, which
allows consumers to download songs legally for 99 cents each, and its
many smaller imitators. Though the venture is not the first to try a
free ad-supported approach, the backing of Universal, with millions
of songs in its catalog from thousands of artists like Eminem and
Gwen Stefani, Elton John and Gloria Estefan, Count Basie and Hank
Williams, promises to give it instant credibility and scale.
SpiralFrog said it expected to start testing its service in the
United States and Canada by the end of the year and would extend its
service to Britain and other European markets next year.
http://www.nytimes.com/2006/08/30/technology/30music.html
(requires registration)

FAMILY, WEINSTEIN BUY ARTS CHANNEL
[SOURCE:  Los Angeles Times, AUTHOR: Meg James]
The family that helped launch satellite television provider DirecTV
said Tuesday that it had teamed with a group of investors, including
movie moguls Harvey and Bob Weinstein, to buy Ovation, a tiny cable
channel devoted to the arts. Despite an already cluttered media
landscape, the deal shows that investors remain interested in very
specialized television channels. The Minnesota-based Hubbard family
also believes that the arts are a wide-open field that can attract an
affluent audience that corporate advertisers will pay a premium to
reach. The family and investors declined to discuss terms of the
deal. Together they have contributed about $55 million to buy the
channel, hire a management team and establish a fund to acquire
programming, according to two sources who declined to be named
because the terms are supposed to be confidential.
http://www.latimes.com/business/printedition/la-fi-ovation30aug30,1,4445262.story?coll=la-headlines-pe-business
(requires registration)

POLICYMAKERS

BROADCAST CHIEF MISUSED OFFICE, INQUIRY REPORTS
[SOURCE: New York Times, AUTHOR: Stephen Labaton]
State Department investigators have found that Kenneth Y. Tomlinson,
the head of the Broadcasting Board of Governors, the agency
overseeing most government broadcasts to foreign countries, has used
his office to run a "horse racing operation" and that he improperly
put a friend on the payroll. Tomlinson's position at the broadcasting
board makes him one of the administration's top officials overseeing
public diplomacy and puts him in charge of the Voice of America and
Radio Free Europe.  The State Department report said that Tomlinson
had repeatedly used government employees to perform personal errands
and that he billed the government for more days of work than the
rules permit. The summary of the report, prepared by the State
Department inspector general, said the United States attorney's
office here had been given the report and decided not to conduct a
criminal inquiry.  The summary said the Justice Department was
pursuing a civil inquiry focusing on the contract for Mr. Tomlinson's
friend. Through his lawyer,  Tomlinson issued a statement denying
that he had done anything improper. The office of the State
Department inspector general presented the findings from its yearlong
inquiry last week to the White House and on Monday to some members of
Congress. Tomlinson's renomination to a new term as chairman of the
State Department office that oversees foreign broadcasts, the
Broadcasting Board of Governors, is pending before the Senate.
Tomlinson's ouster in November from the Corporation for Public
Broadcasting was prompted by a separate investigation by that
inspector general at the corporation. That inquiry found evidence
that Mr. Tomlinson had violated rules as he sought more conservative
programs and that he had improperly intervened to help the staff of
the editorial page of The Wall Street Journal win a $4.1 million
contract, one of the corporation's largest programming contracts, to
finance a weekly public television program.
http://www.nytimes.com/2006/08/30/washington/30broadcast.html?ref=todayspaper
(requires registration)
* Broadcasting Board Chairman Misused Funds, U.S. Probe Says
http://online.wsj.com/article/SB115690748592649246.html?mod=todays_us_marketplace
* Tomlinson Cited For Abuses at Broadcast Board
http://www.washingtonpost.com/wp-dyn/content/article/2006/08/29/AR2006082901492.html
* Foreign Broadcasts' Chief Accused of Impropriety
http://www.latimes.com/news/printedition/asection/la-na-cpb30aug30,1,2069817.story?coll=la-news-a_section
* Tomlinson Vigorously Defends BBG Actions
http://www.broadcastingcable.com/article/CA6366851.html?display=Breaking+News

QUICKLY

PTC CHALLENGES KUTV LICENSE
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
The Utah chapter of the Parents Television Council has filed a
petition to deny the license of CBS-owned KUTV Salt Lake City. Its
offense? Airing an episode of Without a Trace featuring a "teen orgy
party." The FCC has already proposed fining the station and others
for airing the show but PTC points out that CBS is fighting indecency
fines, specifically the Janet Jackson Super Bowl incident that PTC
and the teen orgy fine. The choice of KUTV is twofold at least. It is
a CBS-owned station and CBS, points out PTC, continues to challenge
indecency rulings, and it is in Utah, where the episode's airing is
'probably more demonstrably in violation of community standards,"
says PTC spokesman Dan Issett. In announcing the move, PTC pointed
out that "26 local governments from all over Utah have passed
resolutions calling on their citizens and businesses, and all public
and private institutions, to adopt family-friendly and
child-appropriate standards."
http://www.broadcastingcable.com/article/CA6366786.html?display=Breaking+News

GUILD GETS FACE TIME WITH FCC DEMS
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
According to the Writers Guild of America, FCC Commissioners Michael
Copps and Jonathan Adelstein are meeting with union members in L.A.
this week to talk about the state of news. The unions have been in
extended contract talks with CBS and working without a contract since
April 2005. CBS' reported proposal to remove news producers from the
union is a key sticking point. The guild argues that removing them
from the union threatens their objectivity and independence, and thus
the quality of their work. The meeting with the FCC Commissioners
follows a letter sent to the FCC three weeks ago by Reps Maurice
Hinchey (D-NY), Diane Watson (D-CA) and Jan Schakowsky (D-IL) asking
that FCC Chairman Kevin Martin look into the issues raised by the
negotiations in terms of journalistic quality and independence.
http://www.broadcastingcable.com/article/CA6366628.html?display=Breaking+News

CALIFORNIAN ASSEMBLY OKs LIMITING DRIVERS' CELL PHONE USE
[SOURCE: San Francisco Chronicle, AUTHOR: Matthew Yi and Kimberly Geiger]
California motorists would have to use hands-free devices while
driving and chatting on their cell phones under a bill that cleared
the Assembly and is expected to advance to Gov. Arnold
Schwarzenegger's desk. The legislation seeks to impose a fine of $20
for a first offense and $50 for subsequent offenses. However, the
infraction would not result in adding a point to motorists' driving
records. Gov Schwarzenegger said recently that something should be
done about drivers who are distracted by their cell phones.
http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2006/08/30/CELLPHONE.TMP
--------------------------------------------------------------
Communications-related Headlines is a free online news summary
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While the summaries are factually accurate, their often informal tone
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Headlines are compiled by Kevin Taglang headlines at benton.org -- we
welcome your comments.
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Bridging the worlds of philanthropy, public policy, and community
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Communications in the Public Interest
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