We are a bootstrapped company from Pakistan. We've built a Citizen Journalism news service (www.seenreport.com) which allows ordinary people to report text messages, photos and videos of unfolding news events directly from their cell-phones, as and when it happens. Readers of the news website can discuss, share and rate the news, vote stories up and down and syndicate the content on thier blogs.
The service also allows people to run their own "channels" to cover their events.
For instance, my country is going through political turmoil as the citizens across the country are carrying out long march for the restoration of judges deposed by former dictator Gen. Pervez Musharraf. The current government has violently tried to curb the movement by force resulting in violence. The government has also put a ban on segments of media. People across the country are sending us their eye-witness accounts via SMS, MMS, email and web-upload to make news, be heard and bring change. All of it can be viewed at http://longmarch.seenreport.com/
Please take a look at it and let us know what you think about it.
Another thing... I have worked on both traditional and "citizen" news sites. I think there is a fundamental problem citizen news sites ignore:
On a typical day for a typical citizen, absolutely nothing interesting happens.
You are in a crisis right now so it may not seem that way. But for every 100,000 people perhaps 2 or 3 witness something actually newsworthy.
You need to develop truly innovative ways to gather actual news better than traditional sources. Giving out a mobile text number is not enough.