Yes, a news service photograph can absolutely be a "Type 1" but will depend on the specific photo. In other words, that it is a news service photo does not preclude it from "Type 1" status.
I am no expert but there appears general confusion of terminology - esp. fairly often a tendency to use the term "news service" and "wire" interchangeably. A "wire" photo cannot by definition be a Type 1 photo even though it is also a news service photo. Equally, I regularly see what appear to be bone fide Type 1 news agency photos wrongly labelled as "wire" by sellers.
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