Television
FCC Begins Prickly Review Of Media Ownership
     The FCC this week began the contentious process of revisiting media ownership issues, launching a review of which broadcast ownership rules need to be changed when considering advancing technologies. The agency must decide if the same company within a given market can own a certain number of television and radio stations, and it must determine how to treat rules for the combination of broadcast stations and newspapers. Chairman Kevin Martin said the commission plans to hold six public hearings on the topic and has adopted an extended comment period of 120 days. The review is necessary because the 3rd U.S. Circuit Court of Appeals rejected most of a prior agency decision from June 2003. The FCC dropped from its agenda a plan to reconsider "must carry" rules that would force cable firms to carry all of the digital signals of broadcasters. Commissioner Robert McDowell rebuffed fellow Republican Martin after less than three weeks at the agency.

Telecom
Universal Service Fees Hiked, Applied To Web
     The FCC imposed charges on Internet telephone calls via the universal service fund for the first time and raised by 30 percent the basic rate to be paid by customers with cellular service. Agency Chairman Kevin Martin said the fee hikes are necessary to compensate for an anticipated shortfall in the fund beginning in August. That is when Bell phone companies no longer will have to make USF payments on their high-speed Internet data lines. After the increases, USF contributions are expected to total $2.12 a month for Internet phone customers, $1.38 for customers with traditional phone service, and $1.21 for cell customers, according to estimates provided by the Internet phone company Vonage. Under the order, voice-over-Internet protocols connecting to traditional phones would pay fees based upon 64.9 percent of their revenues. Wireless companies would pay fees based upon 37.1 percent of their revenues, a rate hike of 30 percent.

Telecom
Senate Panel Eases Into Its Divisive Telecom Debate
     The Senate Commerce Committee began its telecommunications debate by adopting an amendment to pre-empt state laws that economically regulate Internet telephone companies. The language would undercut the ability of state public-utility commissions to impose charges on Internet telephone calls within a given state while also preserving state privacy and anti-child pornography laws. And it would modify a provision that would require Internet telephone companies to pay into the federal universal service fund. After approving the amendment on a 14-8 vote, the committee adjourned until Tuesday, when it will resume work on the bill. Achieving a bipartisan consensus remains elusive. Panel ranking Democrat Daniel Inouye of Hawaii has criticized all three drafts and had more sharp words during the panel's first session. Sen. John (Jay) Rockefeller, D-W.Va., said in a statement that the addition of new provisions "makes it virtually impossible for this bill to pass the full Senate this year."

Privacy
Panel Approves Aid To Veterans Hit By ID Theft
     The House Judiciary Committee took a step toward compensating veterans who may be victims of the theft of millions of Veterans Affairs Department personnel records. The committee approved the legislation, H.R. 5520, by voice vote. House passage could come as early as next week. The bill is in response to the theft of a laptop computer reportedly holding files of 26.5 million veterans and active-duty military personnel from the home of a VA employee. An office would be established under the bill to process claims of veterans who may have their identities stolen by thieves to get money, run up credit-card bills or otherwise hurt the veterans. Panel Democrats complained that the legislation is not strong enough. On the same day, VA Secretary James Nicholson announced plans to provide free credit monitoring for those affected by the data breach. The department will take bids from three leading monitoring companies.

Security
Panel OKs Truck Security Bill With Tech Provisions
     The House Homeland Security Economic Security Subcommittee approved a bill that would establish regulations for the trucking industry. The measure would direct the Homeland Security Department to designate which materials being transported by truck should be considered security-sensitive. Individuals transporting sensitive materials would need to undergo fingerprint background checks to get permits. Individuals already vetted through the program for transportation worker identification credentials would not have to have new checks. The legislation also would direct Homeland Security to conduct a test program to determine the feasibility of using technology to track trucks and cargo. At a full House Homeland Security Committee hearing, meanwhile, Chairman Peter King said he does not think homeland security funding cuts to New York City and Washington can be reversed this year, but he is searching for other ways to infuse money into the cities.

Intellectual Property
Attorney General Notes Progress In Fighting Piracy
     Attorney General Alberto Gonzales updated the business community on Justice Department efforts to curtail piracy. He said Justice has exceeded the recommendations of a 2004 report by adding more prosecutors than proposed. During a luncheon speech at the Chamber of Commerce, Gonzales highlighted anti-piracy efforts both domestically and internationally. Justice has created new computer hacking and intellectual property units in the nation's capital; Nashville, Tenn.; Orlando, Fla; Pittsburgh, Pa; and Sacramento, Calif. The department also has dispatched a federal prosecutor to coordinate on policy enforcement issues in Southeast Asia and plans to send a counterpart to Eastern Europe. Gonzales pleaded with lawmakers to act on Justice's proposal to strengthen criminal penalties for copyright infringement, and he asked senators to ratify a cyber-crime treaty with Europe. He noted that the department is partnering with the Patent and Trademark Office to spend $900,000 over three years on an anti-piracy educational campaign.

Health
EBay Tries To Help Small Firms Win Insurance Reform
     More than 300 small-business owners stormed Capitol Hill to urge support for legislation designed to help them offer affordable group health plans. Meg Whitman, president and CEO of the eBay online auction service, was among the headliners called to the annual National Federation of Independent Business summit. She stood ready and willing to lend a strong hand for small businesses. The Internet auction house has more than 724,000 Americans who report their eBay listings as an alternate source of income. With that many small businesses on eBay, she said, "we feel like we need to speak out for all our businesses." In other industry news, Phil Bond, a former technology undersecretary at the Commerce Department, confirmed that he will take the helm at the Information Technology Association of America. He will start his stint as president and CEO in August.