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    • FCC Chairman Kevin Martin said that some telephone subsidies should be used to invest in rural broadband deployment. Currently the $7.3 billion Universal Service Fund gets spent on telephone services in high-cost, low density regions, but Chairman Martin believes the fund could be used for more:

      “I think that we need to recognize that we have a limited amount of money, and we need to be spending it wisely and trying to facilitate broadband connectivity more fully.”

    • Network TV is embracing new digital strategies in its upfront buys this season. In an effort to win advertisers, the Big Four are posting new ratings that include statistics on the number of consumers using time-shifting devices, and are selling ads in free online archives of the networks' most popular shows:

      “The reality of the consumer marketplace is that people are watching television differently, and everyone has to face that fact,” said Tim Spengler, chief activation officer at Initiative in New York.

    • Techdirt reports that HTTP traffic accounts for 46% of all bandwidth use on the web, while P2P takes up just 37%. The gap is in large part due to YouTube, which is responsible for 10% of all online traffic. These findings undermine NBC's claim last week that 70% of all Internet traffic comes from illegal P2P sources.

    • In a response to a complaint by Google, Microsoft will revise its operating system to make it easier for third party software to search through files. Under the new changes, third-party search programs will not be artificially slowed by the Vista operating system.