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		<title>Is Verizon Facing DOJ Probe Over Recent Cable Deals?</title>
		<link>http://www.mediaaccess.org/2011/12/is-verizon-facing-doj-probe-over-recent-cable-deals/</link>
		<comments>http://www.mediaaccess.org/2011/12/is-verizon-facing-doj-probe-over-recent-cable-deals/#comments</comments>
		<pubDate>Tue, 20 Dec 2011 21:58:35 +0000</pubDate>
		<dc:creator>admin</dc:creator>
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		<guid isPermaLink="false">http://www.mediaaccess.org/?p=3893</guid>
		<description><![CDATA[Katie Bachman, Adweek
Now that the Obama Administration has successfully shut down the  AT&#38;T-T-Mobile merger, it is setting its sights on Verizon Wireless&#8217;  recent spectrum and joint venture deals with cable companies. According  to a Bloomberg report,  the Department of Justice is reportedly looking at whether the joint  venture arrangement Verizon [...]]]></description>
			<content:encoded><![CDATA[<p><a href="http://www.adweek.com/news/technology/verizon-facing-doj-probe-over-recent-cable-deals-137226" target="_blank">Katie Bachman, Adweek</a></p>
<p>Now that the Obama Administration has successfully shut down the  AT&amp;T-T-Mobile merger, it is setting its sights on Verizon Wireless&#8217;  recent spectrum and joint venture deals with cable companies. According  to a Bloomberg <a href="http://www.bloomberg.com/news/2011-12-20/verizon-communications-said-to-be-probed-by-u-s-over-cable-spectrum-deals.html" target="_blank">report</a>,  the Department of Justice is reportedly looking at whether the joint  venture arrangement Verizon has struck with the nation&#8217;s top cable  companies violates federal restraint of trade law.</p>
<p>While the AT&amp;T-T-Mobile deal was a straight antitrust case, Verizon&#8217;s $3.6 billion <a href="http://www.adweek.com/news/technology/verizon-wireless-adds-more-spectrum-36-billion-deal-136860" target="_blank">deal</a> with SpectrumCo&#8217;s owners Comcast, Time Warner Cable and Bright House Networks, and $315 million <a href="http://www.adweek.com/news/technology/verizon-wireless-buys-spectrum-cox-137171" target="_blank">deal</a> with Cox Cable are more complex. In both cases, Verizon solidified its leadership position in the wireless business by adding valuable spectrum. But the parties also cut marketing agreements to sell each others&#8217; products and form a joint venture to integrate wireline and wireless products and services.</p>
<p>The deal, said Bernstein Research&#8217;s Craig Moffett, amounted to &#8220;a  partnership between formerly mortal enemies&#8230;. All in all, this is a  strategic masterstroke for Verizon.&#8221;</p>
<p>From the moment Verizon announced the game-changing deals, it raised  red flags with public interest groups, who view the Verizon deals as a  clever way to get around antitrust charges and at the same time, shut  down a potential competitor.</p>
<p><strong>&#8220;</strong><strong>It amounts to a cease fire, in which Verizon appears to say it is  getting out of the video business and cable companies say they are going  to get out of the wireless business,&#8221; said Andy Schwartzman, the policy  director for the Media Access Project. &#8220;It will keep in place existing  structures rather than allowing new competition. It&#8217;s a covenant not to  compete,&#8221; he said.</strong></p>
<p>In addition to the DOJ, Verizon must also seek approval from the  Federal Communications Commission, which will review the deal for its  public interest impact. In its FCC application, filed Monday, Verizon  argued that the FCC should only review the deal for its transfer of  spectrum licenses.</p>
<p>&#8220;Because only spectrum is being transferred, and not an operating  entity, the proposed transaction will not result in any diminution in  competition,&#8221; Verizon said in the filing. &#8220;Consumers will continue to  have all the same choices among wireless providers that they do today.&#8221;</p>
<p>Verizon was not immediately available for comment.</p>
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		<title>AT&amp;T abandons T-Mobile merger</title>
		<link>http://www.mediaaccess.org/2011/12/att-abandons-t-mobile-merger/</link>
		<comments>http://www.mediaaccess.org/2011/12/att-abandons-t-mobile-merger/#comments</comments>
		<pubDate>Tue, 20 Dec 2011 16:52:52 +0000</pubDate>
		<dc:creator>admin</dc:creator>
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		<guid isPermaLink="false">http://www.mediaaccess.org/?p=3890</guid>
		<description><![CDATA[
Brendan Sasso, The Hill
AT&#38;T abandoned its $39 billion bid to buy T-Mobile on  Monday, acknowledging that it couldn&#8217;t overcome opposition from the  Obama administration.
Both the Justice Department and the Federal  Communications Commission (FCC) had moved to block the deal, arguing the  merger of the second and fourth largest wireless carriers would [...]]]></description>
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<p><a href="http://thehill.com/blogs/hillicon-valley/technology/200367-atat-drops-bid-to-buy-t-mobile" target="_blank">Brendan Sasso, The Hill</a></p>
<p>AT&amp;T abandoned its $39 billion bid to buy T-Mobile on  Monday, acknowledging that it couldn&#8217;t overcome opposition from the  Obama administration.</p>
<p>Both the Justice Department and the Federal  Communications Commission (FCC) had moved to block the deal, arguing the  merger of the second and fourth largest wireless carriers would stifle  competition.</p>
<p>AT&amp;T has agreed to pay T-Mobile&#8217;s parent company, Deutsche Telekom, a $4 billion breakup fee.</p>
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<p>&#8220;The actions by the Federal Communications Commission and the  Department of Justice to block this transaction do not change the  realities of the U.S. wireless industry,&#8221; AT&amp;T said in a statement.  &#8220;It is one of the most fiercely competitive industries in the world,  with a mounting need for more spectrum that has not diminished and must  be addressed immediately. The AT&amp;T and T-Mobile USA combination  would have offered an interim solution to this spectrum shortage. In the  absence of such steps, customers will be harmed and needed investment  will be stifled.&#8221;AT&amp;T CEO Randall Stephenson said his company will &#8220;continue to be aggressive in leading the mobile Internet revolution.&#8221;</p>
<p>He  promised AT&amp;T will continue to invest in its network and urged  Congress to pass legislation to free up more airwaves for mobile  devices.</p>
<p>For AT&amp;T, it&#8217;s a disappointing end to a bold  business move that seemed to have all the political momentum just a few  months ago.</p>
<p>Dozens of Democratic and Republican lawmakers wrote  letters urging regulators to approve the deal, and labor unions lobbied  in favor of it.</p>
<p>AT&amp;T said the deal would improve service for  its customers and allow it to make investments that would create jobs.  Many predicted the deal would sail to approval.</p>
<p>But in August, the Justice Department filed a lawsuit that argued the deal would violate antitrust law.</p>
<p>The  merger would have created the nation&#8217;s largest mobile carrier and would  have reduced the number of national firms from four to three. If the  deal had been approved, Verizon Wireless and AT&amp;T would have  accounted for about 80 percent of the wireless market, with Sprint a  distant third.</p>
<p>As AT&amp;T and T-Mobile geared up to defend their  deal in the courtroom, the FCC took its own step towards killing the  deal. Last month, FCC Chairman Julius Genachowski recommended holding a  months-long administrative hearing to review it, saying he was  unconvinced it would benefit the public.</p>
<p>An FCC staff report concluded the merger would harm competition throughout the country and lead to massive layoffs.</p>
<p>AT&amp;T asked a federal judge last week to put the Justice Department trial on hold so it could re-evaluate its options.</p>
<p>Consumer groups which had lobbied against the deal celebrated its demise.</p>
<p>&#8220;In  this age of cynicism, it is important for the American people to see  that Washington does not always go to the highest bidder,&#8221; Harold Feld,  legal director of Public Knowledge, said in a news release. &#8220;The  Department of Justice and the Federal Communications Commission stood up  to tremendous lobbying pressure as AT&amp;T spent tens of millions of  dollars trying to push this merger through.&#8221;</p>
<p>Free Press also credited the Obama administration for standing up to the two companies.</p>
<p>&#8220;The  Obama administration deserves praise and credit for standing up to  AT&amp;T&#8217;s relentless lobbying and propaganda,&#8221; Free Press President  Craig Aaron said. &#8220;And the American public can breathe a sigh of relief  that this time the public interest trumped AT&amp;T&#8217;s self-serving  attempt to kill off what little competition remains in the wireless  market.&#8221;</p>
<p><strong>Andrew Schwartzman, policy director of public interest  law firm Media Access Project, said the announcement &#8220;proves that law  trumps politics.&#8221;</strong></p>
<p>“This merger would have put us one step away  from the monopoly we had during the Ma Bell years,&#8221; Sen. Al Franken  (D-Minn.) said in a statement. &#8220;Wireless telecommunication plays a  central role in the 21st century American economy, and I’m relieved that  we are no longer at risk of concentrating such enormous power in the  hands of AT&amp;T and Verizon.”</p>
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		<title>Technology: The right way to gain spectrum?</title>
		<link>http://www.mediaaccess.org/2011/12/technology-the-right-way-to-gain-spectrum/</link>
		<comments>http://www.mediaaccess.org/2011/12/technology-the-right-way-to-gain-spectrum/#comments</comments>
		<pubDate>Tue, 20 Dec 2011 16:44:24 +0000</pubDate>
		<dc:creator>admin</dc:creator>
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		<guid isPermaLink="false">http://www.mediaaccess.org/?p=3888</guid>
		<description><![CDATA[Jon Healy, LA Times
Finally getting the hint from the feds, AT&#38;T announcedMonday  that it was dropping its $39 billion bid to buy T-Mobile. That leaves  AT&#38;T stuck with the status quo, which in some major cities means a  frustrating amount of congestion and dropped calls. Meanwhile, rival  Verizon Wireless has been [...]]]></description>
			<content:encoded><![CDATA[<p><a href="http://opinion.latimes.com/opinionla/2011/12/technology-the-right-way-to-gain-spectrum.html" target="_blank">Jon Healy, LA Times</a></p>
<p>Finally getting the hint from the feds, AT&amp;T <a href="http://latimesblogs.latimes.com/technology/2011/12/att-pulls-out-of-t-mobile-acquisition-deal.html" target="_self">announced</a>Monday  that it was dropping its $39 billion bid to buy T-Mobile. That leaves  AT&amp;T stuck with the status quo, which in some major cities means a  frustrating amount of congestion and dropped calls. Meanwhile, rival  Verizon Wireless has been gobbling up the wireless frequencies leased  but not developed by the major U.S. cable TV operators. Those airwaves  should provide the company <a href="http://www.anandtech.com/show/5191/verizon-and-att-state-of-the-lte-spectrum-union" target="_self">plenty of room</a>to expand capacity as smartphone users multiply and traffic booms.</p>
<p>Thus, one of the country&#8217;s leading wireless players appears poised to buy its way to greater dominance, but it&#8217;s not AT&amp;T.</p>
<p>At least <a href="../" target="_self">one public-interest group</a> is complaining that Verizon&#8217;s deals are more damaging to consumers than  AT&amp;T&#8217;s long-shot takeover of T-Mobile, but there&#8217;s a critical  difference: While AT&amp;T sought to buy an actual competitor, Verizon  is trying to take out a potential one. Regulators haven&#8217;t been  especially aggressive in blocking the former, but they&#8217;ve been even more  reluctant to block the latter.</p>
<p><a id="more" name="more"></a></p>
<p>At issue is the spectrum that cable operators leased in 2006, when  the Federal Communications Commission auctioned off licenses for  &#8220;advanced wireless services.&#8221; These <a href="http://www.cdg.org/news/events/CDMASeminar/07_NARC/Tues/Lawrence_1110%20AWS%20Overview.pdf" target="_self">airwaves</a>flank the frequency band used for 3G mobile data traffic, and as the AnandTech blog <a href="http://www.anandtech.com/show/5191/verizon-and-att-state-of-the-lte-spectrum-union" target="_self">pointed out</a> this month, they can also support 4G services.</p>
<p>Large swaths of the AWS band were leased by the five largest  mobile-phone carriers. But the country&#8217;s biggest cable TV operators,  which banded together to bid for spectrum, were able to lease enough  licenses to stitch together a national network. The cable operators <a href="http://www.comcast.com/about/pressrelease/pressreleasedetail.ashx?SCRedirect=true&amp;PRID=37" target="_self">said</a> at the time that they weren&#8217;t planning to launch a mobile-phone company  to compete with the likes of Verizon and AT&amp;T. Instead, they said  the purchase gave them &#8220;flexibility and strategic options.&#8221;</p>
<p>The airwaves grew in value over the following five years, but the  licenses remained unused. This month, Verizon announced a pair of deals  to buy the licenses held by various members of the cable operators&#8217;  consortium &#8212; <a href="http://latimesblogs.latimes.com/entertainmentnewsbuzz/2011/12/verizon-wireless-spectrumco-spectrim-deal.html" target="_self">first</a>with Comcast, Time Warner Cable and Bright House Networks, <a href="http://www.businessweek.com/news/2011-12-19/verizon-wireless-adds-cox-to-its-cable-spectrum-services-team.html" target="_self">then</a> with Cox, which had launched a mobile-phone service only to start  phasing it out earlier this year. (The deals netted cable operators more  than $1 billion in profit, a nice &#8220;strategic option.&#8221;) It also  announced a <a href="http://www.chicagotribune.com/business/breaking/chi-leap-buys-chicago-wireless-airwaves-from-verizon-20111205,0,4375335.story" target="_self">swap</a>with Leap Wireless to exchange some of Verizon&#8217;s turf in the 700 Mhz band for some of Leap&#8217;s AWS licenses.</p>
<p>The cable companies plan to market Verizon&#8217;s wireless service, and  Verizon has agreed to market their video services. The joint marketing  arrangement strongly suggests that Verizon <a href="http://gigaom.com/video/verizon-ott/" target="_self">won&#8217;t be expanding</a> its own pay-TV offering, <a href="http://www.verizon.com/fiostv" target="_self">FiOS TV</a>, any time soon.</p>
<p><strong>This prospect worries Andrew Jay Schwartzman, policy director for the  Media Access Project public interest group. After the Cox deal was  announced, Schwartzman said:</strong></p>
<p><strong>Cox Communications now has joined the  other large cable operators in a deal that insures that Verizon and the  cable industry will stop competing with each other.  It is clear Verizon  will stop building out its FiOS video service.  From here on out, cable  won’t do wireless, and Verizon won’t do video.  This new cartel means  higher prices and less competition.  The cease-fire is more important to  consumers than the proposed AT&amp;T/T-Mobile transaction because it is  much more likely to happen.</strong></p>
<p>A more benign possibility is that Verizon is just more comfortable  selling communications services than content services. Either way,  though, its decision to partner with cable companies instead of the two  sides competing with each other is disappointing for consumers, even if  it may translate into zippier mobile data services in the short run.</p>
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		<title>Verizon &#8220;Public Interest Statement&#8221; Does Not Allay Concerns About Spectrum Deal With Cable Companies</title>
		<link>http://www.mediaaccess.org/2011/12/verizon-public-interest-statement-does-not-allay-concerns-about-spectrum-deal-with-cable-companies/</link>
		<comments>http://www.mediaaccess.org/2011/12/verizon-public-interest-statement-does-not-allay-concerns-about-spectrum-deal-with-cable-companies/#comments</comments>
		<pubDate>Mon, 19 Dec 2011 18:48:23 +0000</pubDate>
		<dc:creator>admin</dc:creator>
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		<guid isPermaLink="false">http://www.mediaaccess.org/?p=3874</guid>
		<description><![CDATA[December 19, 2011
For Immediate Release
Contact: Andrew Jay Schwartzman
202.454.5681
andys@mediaaccess.org

VERIZON &#8220;PUBLIC INTEREST STATEMENT&#8221; DOES NOT ALLAY CONCERNS ABOUT SPECTRUM DEAL WITH CABLE COMPANIES
Verizon has submitted an application seeking FCC approval of spectrum it seeks to purchase from a consortium of the largest cable television companies.  Although the transaction also involves elaborate joint marketing agreements, Verizon argues [...]]]></description>
			<content:encoded><![CDATA[<p>December 19, 2011</p>
<p>For Immediate Release</p>
<p>Contact: Andrew Jay Schwartzman<br />
202.454.5681<br />
andys@mediaaccess.org</p>
<p><strong><br />
VERIZON &#8220;PUBLIC INTEREST STATEMENT&#8221; DOES NOT ALLAY CONCERNS ABOUT SPECTRUM DEAL WITH CABLE COMPANIES</strong></p>
<p>Verizon has submitted an application seeking FCC approval of spectrum it seeks to purchase from a consortium of the largest cable television companies.  Although the transaction also involves elaborate joint marketing agreements, Verizon argues to the FCC that those aspects of the deal are not relevant to the FCC&#8217;s consideration of the matter.  Media Access Project Senior Vice President and Policy Director of Media Access Project today issued the following statement in response:</p>
<p>No matter how forcefully Verizion claims that this is &#8220;a spectrum only transaction,&#8221; it is much more than that.  The FCC&#8217;s mandate is to look at the totality of the circumstances to decide if a proposed transfer is in the public interest.  This one raises serious questions about the state of competition in both the wireless and video markets.</p>
<p>Media Access Project is a nonprofit, public interest law firm working to protect free expression, innovation, and economic growth by promoting low cost, universal access to media outlets and communications services.</p>
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		<title>Scandal Stirs U.S. Debate on Big Media</title>
		<link>http://www.mediaaccess.org/2011/07/scandal-stirs-u-s-debate-on-big-media/</link>
		<comments>http://www.mediaaccess.org/2011/07/scandal-stirs-u-s-debate-on-big-media/#comments</comments>
		<pubDate>Wed, 20 Jul 2011 16:11:17 +0000</pubDate>
		<dc:creator>admin</dc:creator>
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		<guid isPermaLink="false">http://www.mediaaccess.org/?p=3273</guid>
		<description><![CDATA[By Brian Stelter, The New York Times

Progressive activists and public interest groups have long blasted Rupert Murdoch and his News Corporation for political biases. But  in recent weeks they have seized on a new and more tangible reason to  call for the revocation of his TV licenses and the breakup of his  [...]]]></description>
			<content:encoded><![CDATA[<p>By Brian Stelter, <a href="http://www.nytimes.com/2011/07/20/business/media/murdoch-scandal-stirs-us-debate-on-big-media.html?_r=1#h[]" target="_blank">The New York Times</a></p>
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<p>Progressive activists and public interest groups have long blasted Rupert Murdoch and his <a title="More information about News Corporation" href="http://topics.nytimes.com/top/news/business/companies/news_corporation/index.html?inline=nyt-org">News Corporation</a> for political biases. But  in recent weeks they have seized on a new and more tangible reason to  call for the revocation of his TV licenses and the breakup of his  company: the British hacking scandal.</p>
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<p>The scandal, they say, is an opportunity to raise awareness of — and,  they hope, objection to — media consolidation at a time when the  American government is reviewing the rules that govern how much  companies like News Corporation, Comcast and the Walt Disney Company can  own.</p>
<p>“For those of us who’ve been warning about the dangers of too much media  power concentrated in too few corporate hands, this scandal is a  godsend,” said Jeff Cohen, the founding director of the <a title="The organization’s Web site." href="http://www.ithaca.edu/rhp/independentmedia/">Park Center for Independent Media</a> at Ithaca College.</p>
<p>The scandal is also giving Democratic lawmakers an opportunity to call  for more attention to the practices of such companies.</p>
<p>Representative Bobby Rush, a Democrat of Illinois and a past critic of  Mr. Murdoch, questioned in an interview whether the media mogul had been  allowed to amass too much media power. “We can’t forget the fundamental  tenet of media ownership in the United States. It’s not a right, it’s a  privilege. And it’s a privilege based on trust and responsibility,” he  said.</p>
<p>Representative Tammy Baldwin, a Democrat of Wisconsin, said that along  with media consolidation, the scandal raised questions about “privacy  expectations in the digital world” and about how “we support freedom of  the press while ensuring the integrity and truthfulness of the press.”</p>
<p>There are few if any immediate threats to Mr. Murdoch’s American  portfolio, which includes the Fox network, two dozen local television  stations, The Wall Street Journal, The New York Post and the 20th  Century Fox movie studio. The Federal Communications Commission signaled  last week that it regarded the hacking scandal as isolated to Britain.</p>
<p>But the scandal in Britain could influence the F.C.C. review of media  ownership rules, especially if there is perceptible public discord about  powerful media moguls like Mr. Murdoch.</p>
<p>The discord is already evident in Britain, where politicians have talked  openly about considering new laws that would lead to a breakup of the  News Corporation, which owns 39 percent of British Sky Broadcasting as  well as numerous newspapers there.</p>
<p>In the United States, politicians have called for investigations into  whether News Corporation entities hacked into the phones of Americans,  including the victims of Sept. 11 terrorist attacks. The Federal Bureau  of Investigation is now investigating; on Tuesday, Mr. Murdoch said that  he was aware of no evidence that any 9/11 American victims had been  affected.</p>
<p>But media reform groups like Free Press, which advocates for more  diversity in media ownership, say their interest extends far beyond any  single investigation.</p>
<p>“I think this is the moment to contend with the serious damage the  Murdoch empire has done to our media system over the past few decades,”  Craig Aaron, the head of that group, said last week.</p>
<p>The 2004 book “The New Media Monopoly” by Ben H. Bagdikian found that  more than half of the radio and television stations, daily newspapers,  magazines, publishers and movie studios in the United States were owned  by five companies. In January, in the most recent case of consolidation,  the government approved a bid by Comcast to take control of NBC  Universal.</p>
<p>Proponents of media mergers say such combinations improve consumer  access to news, information and entertainment. They say the Internet has  fostered competition, creating new choices for consumers.</p>
<p>Groups like Free Press say the opposite — that such combinations reduce  the country’s journalistic corps and decrease the diversity of voices in  print and on the air. Mr. Aaron said he sensed that most Americans were  aware of big media brands like Fox and NBC but unaware that their  owners also controlled dozens of other brands. Media companies present  an obstacle to awareness: “Most media outlets don’t like to cover  themselves.”</p>
<p>But “when people find out just how much those companies own, they are  worried about it and want to know more,” he said, adding that <a title="The online chart." href="http://www.freepress.net/ownership/chart/main">the who-owns-what chart</a> was the most popular feature on the Free Press Web site.</p>
<p>This week, the F.C.C. declined to comment on the status of its ownership  review, which is supposed to assess whether the existing rules are  effectively promoting diversity, localism and competition. Earlier this  month, an appeals court upheld most of the steps that the commission  took in 2007 to loosen ownership rules, but it rejected on procedural  grounds one rule that enabled more companies to own a newspaper and a  station in the same local market.</p>
<p>Cable outlets like Fox News — the scourge of liberals and a symbol of  Mr. Murdoch’s political power — are not under the purview of the F.C.C.  or its ownership review, but the News Corporation’s 27 local stations  are, because each is dependent on a federal license for use of the  public airwaves.</p>
<p>License revocations are extremely rare, and analysts said they did not  anticipate problems for the stations as a result of the hacking scandal.  But an F.C.C. provision assessing the character of a station owner  could be invoked by the News Corporation’s opponents when the company’s  licenses for Fox and MyNetwork stations come up for renewal.</p>
<p>The broader problem for Mr. Murdoch, Mr. Aaron suggested, is that he  “had an air of invincibility” before the scandal became one of the most  talked-about news stories in Britain and the United States. “Whatever  happens now, that’s gone,” he said.</p>
<p>Andrew Jay Schwartzman of the public interest group <a title="The organization Web site." href="../">Media Access Project</a>, said he doubted that loyal viewers of Fox News, a News Corporation property, would change their views.</p>
<p>But, he added, “a much larger group of people have an instinctive  mistrust of powerful media, and they understand that consolidation of  media ownership is not good for democracy.”</p>
<p>“For better or worse,” Mr. Schwartzman said, “News Corporation’s misdeeds will fuel that skepticism.”</p>
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		<title>Court Rejects Part of Media-Ownership Rules</title>
		<link>http://www.mediaaccess.org/2011/07/court-rejects-part-of-media-ownership-rules/</link>
		<comments>http://www.mediaaccess.org/2011/07/court-rejects-part-of-media-ownership-rules/#comments</comments>
		<pubDate>Thu, 07 Jul 2011 20:24:08 +0000</pubDate>
		<dc:creator>admin</dc:creator>
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		<guid isPermaLink="false">http://www.mediaaccess.org/?p=3242</guid>
		<description><![CDATA[By AMY SCHATZ, The Wall Street Journal
WASHINGTON—Federal regulators may face more pressure  to overhaul  laws governing media ownership in the U.S. after a federal  appeals court Thursday threw out a 2008 government decision to relax  restrictions on companies seeking to control both newspapers and  television stations.
A panel of the U.S. [...]]]></description>
			<content:encoded><![CDATA[<p>By AMY SCHATZ, <a href="http://online.wsj.com/article/SB10001424052702303365804576431830805132602.html" target="_blank">The Wall Street Journal</a></p>
<p>WASHINGTON—Federal regulators may face more pressure  to overhaul  laws governing media ownership in the U.S. after a federal  appeals court Thursday threw out a 2008 government decision to relax  restrictions on companies seeking to control both newspapers and  television stations.</p>
<p>A panel of the U.S. Court of Appeals in Philadelphia rejected Federal  Communications Commission rules that made it easier for media companies  to own a TV station and newspaper in the same market. The court said  the FCC erred by failing to give the public enough time to comment on  the rules, and sent them back to the agency for further review.</p>
<p>Former FCC Chairman Kevin Martin announced the rule change in a  newspaper editorial in 2007 and allowed &#8220;only 28 days for response, not  the usual 90 days,&#8221; the appeals court said.</p>
<p>The court&#8217;s decision upheld much of the then Republican-controlled  FCC&#8217;s 2008 revamp of the nation&#8217;s media-ownership rules. But it returns  the highly politicized issue of newspaper and television cross-ownership  restrictions to an agency where power has shifted toward Democrats, and  which has shown more interest lately in the Internet than older forms  of media.</p>
<p>In late 2007, the FCC narrowly voted to allow companies to own  newspapers and television stations in the nation&#8217;s 20 largest media  markets, loosening cross-ownership restrictions that had applied for  more than three decades. Under the rules, a company in the largest 20  markets could own both a newspaper and a TV station as long as there  were at least eight media outlets in the market.</p>
<p>Then-Sen. Barack Obama was among 25 senators who wrote the FCC in  2007 asking the agency to reconsider Mr. Martin&#8217;s changes and  threatening to block them.</p>
<p>It isn&#8217;t clear if the FCC&#8217;s current chairman, Julius Genachowski,  will renew his Republican predecessor&#8217;s efforts to loosen the ownership  curbs. He has remained silent on the issue in public. The agency is  supposed to review the rules every four years, but the agency is behind  on its scheduled 2010 review and still has significant work left to do,  according to FCC officials.</p>
<p>In response to Thursday&#8217;s court decision, FCC General Counsel Austin  Schlick, said in a statement that the FCC &#8220;is currently engaged in a  statutorily mandated further review of its media-ownership rules. With  an updated record and this supportive decision, the agency should be  able to take appropriate steps to ensure that the nation&#8217;s media  marketplace remains healthy and vibrant.&#8221;</p>
<p>The  rules have caused political trouble for the FCC for years. In  2003, then FCC Chairman Michael Powell sought to deregulate and  eliminate some rules pertaining to local-media ownership. Congress moved  to revoke some of the changes.</p>
<p>Four years later, when the FCC debated loosening TV and newspaper  cross-ownership rules, media companies including Media General Inc. and <a href="http://online.wsj.com/public/quotes/main.html?type=djn&amp;symbol=nwsa">News Corp.</a>,  owner of The Wall Street Journal, complained that the agency didn&#8217;t go  far enough. But media companies didn&#8217;t lobby particularly heavily on the  issue.</p>
<p>&#8220;There have been sweeping changes in the media landscape since most  of the broadcast ownership rules were adopted decades ago,&#8221; said  National Association of Broadcasters spokesman Dennis Wharton in a  statement Thursday.  He said the trade group &#8220;believes that modest  reform of rules to allow free and local broadcasters to compete  successfully in a universe of national pay-TV and radio platforms is  warranted.&#8221;</p>
<p>Over the past few years changes in the media industry, including  declining subscribership and advertising revenues, has significantly  lessened investors&#8217; interest in buying newspapers. In 2007, Mr. Martin  argued that cross-ownership rules weren&#8217;t necessary in the Internet age  and that relaxing the rules wouldn&#8217;t hurt consumers.</p>
<p>Proponents of a diverse media fought the changes, saying that further  consolidation of the  marketplace left too few sources of original news  content for consumers. &#8220;This decision is a vindication of the public&#8217;s  right to have a diverse media environment,&#8221; said Andrew Jay Schwartzman,  senior vice president and policy director of Media Access Project, one  of the group&#8217;s that challenged the FCC rules in court.</p>
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		<title>Big Loss for Big Media and the FCC: Court Rejects Media Consolidation Push</title>
		<link>http://www.mediaaccess.org/2011/07/big-loss-for-big-media-and-the-fcc-court-rejects-media-consolidation-push/</link>
		<comments>http://www.mediaaccess.org/2011/07/big-loss-for-big-media-and-the-fcc-court-rejects-media-consolidation-push/#comments</comments>
		<pubDate>Thu, 07 Jul 2011 19:18:53 +0000</pubDate>
		<dc:creator>admin</dc:creator>
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		<guid isPermaLink="false">http://www.mediaaccess.org/?p=3238</guid>
		<description><![CDATA[


By Timothy Karr, HuffPost Media
It&#8217;s not every day that you can celebrate a win for the public  over big media. But on Thursday a federal appeals court threw out an  attempt by the FCC and industry titans to gut media ownership limits.
The decision by the U.S. Court of Appeals for the Third Circuit [...]]]></description>
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<p>By Timothy Karr, <a href="http://www.huffingtonpost.com/timothy-karr/big-loss-for-big-media-an_b_892394.html" target="_blank">HuffPost Media</a></p>
<p>It&#8217;s not every day that you can celebrate a win for the public  over big media. But on Thursday a federal appeals court threw out an  attempt by the FCC and industry titans to gut media ownership limits.</p>
<p>The <a href="http://www.freepress.net/resource/third-circuit-decision-prometheus-radio-project-vs-federal-communications-commission">decision</a> by the U.S. Court of Appeals for the Third Circuit threw out a 2007 FCC  rule change that would have allowed a single company to own a daily  newspaper and several broadcast stations in one local market.</p>
<p>Such a change could have opened the floodgates to media mergers, leading to <a href="http://www.huffingtonpost.com/timothy-karr/in-tribune-meeting-fcc-ch_b_65318.html">further layoffs</a> in newsrooms while leeching diverse perspectives from local media.</p>
<p>The court also upheld the FCC&#8217;s decision to retain its other local  broadcast ownership restrictions, and instructed the agency to better  consider how its rules affect broadcast ownership by people of color.</p>
<p><strong>Sweeping Victory for the Public Interest</strong></p>
<p>The decision is a sweeping victory for the public interest. The court  rejected arguments made by broadcast and newspaper giants while  exposing the FCC&#8217;s repeated failures to rein in runaway consolidation.</p>
<p>&#8220;We won on almost every point,&#8221; said Andrew Schwartzman, Senior Vice  President and Policy Director of Media Access Project, who argued before  the court against the FCC&#8217;s rules.</p>
<p>&#8220;This decision is a vindication of the public&#8217;s right to have a  diverse media environment&#8230;  Now that the Court has directed the FCC to  make sure the public is not ignored, we can look forward to having a  right to meaningful participation as the FCC looks at these questions  again.&#8221;</p>
<p>&#8220;The court wisely concluded that competition in the media &#8211; not more  concentration &#8211; will provide Americans with the local news and  information they need and want,&#8221; said Corie Wright, Free Press policy  counsel, who also argued the case on behalf of a coalition of public  advocacy groups.</p>
<p>The case, <em>Prometheus Radio Project v. FCC</em>, is the second  time the Third Circuit jettisoned FCC attempts to relax its media  ownership rules. The first was in 2004, when the same panel of judges  struck down then-Chairman Michael Powell&#8217;s attempts to gut media  ownership limits.</p>
<p>&#8220;I was there when Andrew Schwartzman and his colleagues put together  their case for the people,&#8221; said Hannah Sassaman, a longtime organizer  at the Prometheus Radio Project who is now working with the New America  Foundation. &#8220;The court threw out the FCC&#8217;s rules because these  incredible lawyers and the millions of people they represented proved  that letting one company own too much media hurts our communities.</p>
<p><strong>Big Media Lobby Rebuked</strong></p>
<p>Large media corporations have repeatedly lobbied the FCC to lift its  35-year-old ban on &#8220;newspaper/broadcast cross-ownership&#8221;. Had they been  successful &#8212; and these rules gone into effect &#8212; a single company could  have owned the main daily newspaper, eight radio stations, three  television stations and a major cable provider in the same town.</p>
<p>The court decision vacated the FCC&#8217;s plan to relax the ban on such  common ownership, finding that the Commission&#8217;s rule-making procedures  were highly irregular and failed to give the public adequate notice and  opportunity to weigh in.</p>
<p>The court also determined that record evidence supports the FCC&#8217;s decision not to relax any of the other media ownership rules.</p>
<p>&#8220;Today the court confirmed that the FCC&#8217;s media ownership rules are  not only constitutional but necessary to preserve competition, as well  as to promote diverse sources of news and information for the American  people,&#8221; said Wright.</p>
<p><strong>The FCC&#8217;s Diversity Problem</strong></p>
<p>The court also blasted the FCC for repeated failures to consider the  impact of media consolidation on broadcast license ownership by people  of color.</p>
<p>Free Press research from 2007 exposed the FCC&#8217;s failure to foster  minority ownership of radio and television stations: racial or ethnic  minorities own just <a href="http://www.stopbigmedia.com/=off_the_dial">7.7 percent</a> of all full-power commercial broadcast radio stations and just <a href="http://www.stopbigmedia.com/=out_of_the_picture">3.26 percent</a> of all TV stations, though they account for 33 percent of the U.S. population.</p>
<p>The court&#8217;s findings come as the FCC embarks on yet another review of  media ownership limits this summer. And while the court upheld the need  for curbs, industry groups are still pushing the FCC to eliminate them,  just as public interest groups are organizing against <a href="http://www.savethenews.org/changethechannels" target="_hplink">new and covert forms</a> of media consolidation.</p>
<p>Now the FCC &#8220;cannot ignore the overwhelming evidence that existing  media consolidation levels adversely impact the amount and quality of  news from diverse sources,&#8221; Wright said.</p>
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		<title>Court tosses FCC&#8217;s relaxed media ownership rule</title>
		<link>http://www.mediaaccess.org/2011/07/court-tosses-fccs-relaxed-media-ownership-rule/</link>
		<comments>http://www.mediaaccess.org/2011/07/court-tosses-fccs-relaxed-media-ownership-rule/#comments</comments>
		<pubDate>Thu, 07 Jul 2011 17:55:21 +0000</pubDate>
		<dc:creator>admin</dc:creator>
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		<guid isPermaLink="false">http://www.mediaaccess.org/?p=3235</guid>
		<description><![CDATA[By Gautham Nagesh, Hillicon Valley
A federal court rejected a rule change from the Federal  Communications Commission on Thursday that would have made it easier for  a single company to own both a newspaper and broadcast TV station in  the same local market on technical grounds.
The U.S. Court of  Appeals for the [...]]]></description>
			<content:encoded><![CDATA[<div>By Gautham Nagesh, <a href="http://thehill.com/blogs/hillicon-valley/technology/170179-court-tosses-fccs-relaxed-media-ownership-rule" target="_blank">Hillicon Valley</a></div>
<p>A federal court rejected a rule change from the Federal  Communications Commission on Thursday that would have made it easier for  a single company to own both a newspaper and broadcast TV station in  the same local market on technical grounds.</p>
<p>The U.S. Court of  Appeals for the Third District ruled the FCC failed to give stakeholders  adequate opportunity to comment before relaxing a three-decade ban on  companies owning both types of media outlets.</p>
<p>Public interest  groups that challenged the FCC&#8217;s rules claimed a victory despite the  fact the court upheld most of the rest of the FCC&#8217;s 2008 media ownership  decision.</p>
<p>&#8220;The FCC majority knew that its effort to allow more media  concentration was  politically and legally unworkable, so it tried to  end-run the procedural protections that are designed to give the public  the right to participate in agency proceedings,&#8221; said Media Access  Project policy director Andrew Jay Schwartzman.</p>
<p>&#8220;It was  disapointing that FCC Chairman Genachowski chose to defend his  predecessor&#8217;s erroneous action, but now that the Court has directed the  FCC to make sure the public is not ignored, we can look forward to  having a right to meaningful participation as the FCC looks at these  questions again.&#8221;</p>
<p>An appeal from the FCC is unlikely as the  Commission is already undergoing its quadrennial review of media  ownership rules and will likely address the issue through that process.  The new rule would have essentially put a thumb or the scale in favor of  allowing a firm to own both a newspaper and broadcast station in top 20  markets and a thumb on the scale against such transactions in smaller  markets.</p>
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<p>The FCC has maintained since 2003 that the ban on newspapers  own TV stations and vice versa is no longer justified; the new rules  would permit some transactions that wouldn&#8217;t previously be allowed.  Still, the Commission framed the court&#8217;s decision as a win for the  agency.</p>
<p>“The Third Circuit’s approval of the 2008 ownership rules  for broadcast stations affirms the FCC’s authority to promote  competition, localism, and diversity in the modern media marketplace,&#8221;  said FCC general counsel Austin Shlick.</p>
<p>&#8220;With an updated  record and this supportive decision, the agency should be able to take  appropriate steps to ensure that the nation’s media marketplace remains  healthy and vibrant.”</p>
<p>The broadcasters file arguments in favor of  most relaxing media ownership rules due to increasing competition cable  and the Web, which the court broadly rejected.</p>
<p>&#8220;There have  been sweeping changes in the media landscape since most of the broadcast  ownership rules were adopted decades ago,&#8221; said National Association of  Broadcasters executive vice president of communications Dennis Wharton.</p>
<p>&#8220;NAB believes that modest reform of rules to allow free and  local broadcasters to compete successfully in a universe of national pay  TV and radio platforms is warranted.&#8221;</p>
<p>The FCC will consider the  newspaper-broadcast ownership rule along as part of the review of media  ownership rules, at which point the Commission can choose to either  pursue the same course or institute new rules.</p>
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		<title>Court Rejects FCC&#8217;s Cross-Ownership Rules Agency to further review media ownership limits</title>
		<link>http://www.mediaaccess.org/2011/07/court-rejects-fccs-cross-ownership-rules-agency-to-further-review-media-ownership-limits/</link>
		<comments>http://www.mediaaccess.org/2011/07/court-rejects-fccs-cross-ownership-rules-agency-to-further-review-media-ownership-limits/#comments</comments>
		<pubDate>Thu, 07 Jul 2011 17:51:32 +0000</pubDate>
		<dc:creator>admin</dc:creator>
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		<guid isPermaLink="false">http://www.mediaaccess.org/?p=3231</guid>
		<description><![CDATA[By Ted Johnson, Variety
A  federal appellate court turned back the FCC&#8217;s effort to relax its  limits on ownership of newspapers and TV stations in the same market,  ruling that the agency failed to give adequate notice when they made the  change in 2007.
The 3rd Circuit Court of Appeals means that the [...]]]></description>
			<content:encoded><![CDATA[<div>By Ted Johnson, <a href="http://www.variety.com/article/VR1118039551?refCatId=14" target="_blank">Variety</a></div>
<p>A  federal appellate court turned back the FCC&#8217;s effort to relax its  limits on ownership of newspapers and TV stations in the same market,  ruling that the agency failed to give adequate notice when they made the  change in 2007.</p>
<p>The 3rd Circuit Court of Appeals means that the FCC  will again have to take up the rules, which supporters argued was  necessary to strengthen local news gathering in the face of declining ad  revenue.</p>
<p>The new rules lifted the ban on cross ownership in the 20 largest media markets.</p>
<p>Public  interest groups had argued that they were not given adequate time to  comment on the proposed changes, made under then FCC-chairman Kevin  Martin.</p>
<p>&#8221;We won on almost every point,&#8221; said Andrew Jay  Schwartzman, senior vice president and policy director of the Media  Access Project, which represented Prometheus Radio Project in  challenging the changes. &#8221;This decision is a vindication of the  public&#8217;s right to have a diverse media environment.  The FCC majority  knew that its effort to allow more media concentration was politically  and legally unworkable, so it tried to end-run the procedural  protections that are designed to give the public the right to  participate in agency proceedings.&#8221;</p>
<p>The court also said that the FCC also failed to consider the impact of its new rules on minority ownership of media outlets.</p>
<p>Judges Thomas Ambro and Julio Fuentes found fault with the FCC&#8217;s rule change, while Judge Anthony Scirica dissented.</p>
<p>The  FCC is currently undertaking another review of its media ownership  rules. In a statement, the agency said that they &#8216;&#8217;should be able to  take appropriate steps to ensure that the nation&#8217;s media marketplace  remains healthy and vibrant.&#8221;</p>
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		<title>Court restores ban on newspaper, TV ownership</title>
		<link>http://www.mediaaccess.org/2011/07/court-restores-ban-on-newspaper-tv-ownership/</link>
		<comments>http://www.mediaaccess.org/2011/07/court-restores-ban-on-newspaper-tv-ownership/#comments</comments>
		<pubDate>Thu, 07 Jul 2011 17:38:49 +0000</pubDate>
		<dc:creator>admin</dc:creator>
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		<guid isPermaLink="false">http://www.mediaaccess.org/?p=3229</guid>
		<description><![CDATA[By JOELLE TESSLER, AP Technology Writer
WASHINGTON (AP) — A federal appeals court has restored a longstanding  ban that prevents media companies from owning both a newspaper and a  television station in the same market.
The 3rd U.S. Circuit Court  of Appeals in Philadelphia said Thursday that the Federal Communications  Commission didn&#8217;t give [...]]]></description>
			<content:encoded><![CDATA[<p>By JOELLE TESSLER, <a href="http://www.google.com/hostednews/ap/article/ALeqM5iHaIUIoBt-CyXe2v1BpkQDPNyKPw?docId=e7c26a037ec848b9ba52ffd5a1f754ee" target="_blank">AP Technology</a> Writer</p>
<p>WASHINGTON (AP) — A federal appeals court has restored a longstanding  ban that prevents media companies from owning both a newspaper and a  television station in the same market.</p>
<p>The 3rd U.S. Circuit Court  of Appeals in Philadelphia said Thursday that the Federal Communications  Commission didn&#8217;t give the public adequate opportunity to comment on  new rules that lifted the ban in the 20 largest media markets. The  appeals court sent the rules back to the FCC to be rewritten.</p>
<p>The  so-called cross-ownership ban dates back to 1975 — a time when  newspapers dominated the media industry. In 2007, then-FCC Chairman  Kevin Martin, a Bush administration appointee, moved to ease those  restrictions in the biggest media markets. He argued that the ban no  longer made sense in a media landscape that had been upended by the  Internet and had left many daily newspapers struggling for survival.</p>
<p>Public  interest groups challenged Martin&#8217;s move and warned that too much  consolidation would lead to less diversity in news coverage.</p>
<p>Andrew  Jay Schwartzman, head of the nonprofit law firm Media Access Project,  which led the challenge, hailed Thursday&#8217;s ruling. &#8220;We&#8217;re extremely  pleased that the court recognized that the public has a right to a  diverse media environment,&#8221; he said.</p>
<p>Congress requires the FCC to  review its media-ownership rules every four years. Those rules include  the cross-ownership restrictions and limits on the number of television  and radio stations that one company can own in a market. Thursday&#8217;s  ruling comes as the current FCC, now under Democratic control, is  seeking to wrap up its latest review, which began last year.</p>
<p>In a  statement Thursday, the FCC said the current review will allow it to  take &#8220;appropriate steps to ensure that the nation&#8217;s media marketplace  remains healthy and vibrant.&#8221;</p>
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