December 16, 2011 (The nightmarish SOPA hearings)

Communications Security, Reliability, and Interoperability Council – and the SOPA Mark-up continues http://benton.org/calendar/2011-12-16/

BENTON'S COMMUNICATIONS-RELATED HEADLINES for FRIDAY, DECEMBER 16, 2011

PIRACY
   Lawmakers want House Judiciary Committee to slow online piracy bill
   House Judiciary Committee Has More Work to do With SOPA Markup
   Top Internet engineers warn against SOPA
   The nightmarish SOPA hearings - editorial
   Should Copyright Be Allowed to Override Speech Rights? - op-ed

MORE ON CONTENT
   MPAA Volunteers Timeline for Captioning Archival TV Shows Online
   Publishers still missing the point on e-book prices - analysis
   The Power of Shutting Up in the Internet Age [links to web]
   Bloggers Recall the Year in Pictures - research [links to web]
   Facebook Takes Aim in Ad Fight [links to web]

INTERNET
Apps That Bring Local Information to Underserved Communities - press release [links to web]
Apps vs. the web: Are they enemies or allies?

WIRELESS/SPECTRUM
   Message To Congress: With All Due Respect, If It Ain't Broke Don't Fix It - op-ed
   Congress, please don’t kill white spaces - editorial
   Defense bill amendment seeks to block LightSquared [links to web]
   NAB's Gordon Smith: We're Fine with House Version Of Spectrum Bill
   AT&T awfully picky about the spectrum it claims to need
   New Mobile Obsession: U.S. Teens Triple Data Usage - research [links to web]
   Why we should ban drivers from using portable electronic devices - op-ed
   US ban on driver cell phone use not realistic - editorial

OWNERSHIP
AT&T Investors Face Risks if T-Mobile Deal Is Pulled, Says Fitch
More Than 80% of Basic Cable Subs Take Broadband Service Too

BROADCAST/CABLE
   Standardizing Program Reporting Requirements for Broadcast Licensees - public notice
   FCC’s CALM Act Rules Puts Ball in Viewers’ Court - analysis
   ACA Says NFL Deal Could Be 'Calamity' for Consumers [links to web]
   ESPN Scores $500 Million, Multimedia Rights Pact For NCAA Championships [links to web]
   PBS Kids: Ratings Rise Buys New Sponsors [links to web]
   Tough Sledding for Broadcast TV
   Paying a ‘Sports Tax,’ Even if You Don’t Watch
   Judge Criticizes Fox in Dodgers Rights Case [links to web]
   Ofcom probe clears TV advertising [links to web]

ELECTIONS AND MEDIA
Watchdogs: Perry team might have violated campaign finance laws [links to web]

TELECOM
   Court prepares to hear challenges to FCC's Universal Service order
   Request for Connect America Fund Cost Models - public notice
   PSTN phase-out workshop endeavors to separate the baby from the bath water

GOVERNMENT & COMMUNICATIONS
   President Obama Nominates Three for Privacy and Civil Liberties Oversight Board - press release
   US Restricts UAE Firm for Web Filter Sale to Syria
   Appropriations bill hikes e-government fund [links to web]
   FBI denies using controversial cellphone tracking software

CYBERSECURITY
Will US Businesses Finally Get Some Cybersecurity?
China’s Cyberwar - editorial

LABOR
Drive to reverse technology skills shortage
Job-devouring technology is conundrum for US workers

MORE ONLINE
   San Francisco Launches Pay by Phone Parking Meters [links to web]
   Here’s A Real-ish Kindle Number From Amazon [links to web]
   Is America at a Digital Turning Point? [links to web]

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PIRACY

LAWMAKERS WANT TO SLOW SOPA
[SOURCE: The Hill, AUTHOR: Gautham Nagesh]
Opponents of the Stop Online Piracy Act (SOPA) urged House Judiciary Committee Chairman Lamar Smith (R-Texas) to hold additional hearings on the bill rather than report it out of committee during a Dec 15 markup. During a lively and lengthy markup featuring passionate arguments from both sides on the controversial online piracy legislation, opponents argued the committee has yet to hear from technical experts on the potential consequences of the bill for security and free speech. Rep. Jason Chaffetz (R-Utah) compared the bill to performing surgery on the Internet without having a doctor in the room and said the committee has moved far too quickly on such sweeping legislation. Google has emerged as one of the biggest corporate critics of SOPA with co-founder Sergey Brin now likening the proposal to Internet censorship practices in China and Iran. Brin took to the Google+ social networking site to post his opinion. He also opposes the Senate’s version of the measure, known as the Protect Intellectual Property Act. Supporters of SOPA, including Chairman Smith and Intellectual Property subpanel Chairman Bob Goodlatte (R-VA), argued a manager's amendment offered on Dec 12 addresses many of the concerns outlined by tech companies. Ranking member John Conyers (D-MI) suggested opponents were trying to delay the legislation via roughly 60 amendments but said it wouldn't work. "If someone thinks a bill of this magnitude is going to stall because we got tired, they got the wrong think coming," Rep Conyers said.
benton.org/node/107289 | Hill, The | ars technica | Washington Post | Politico | paidContent | PCMag
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SOPA MARKUP CONTINUES
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
After a 12-hour hearing that saw a parliamentary inquiry prompted by a tweet and some heated exchanges, the House Judiciary Committee still had more work to do in marking up the controversial Stop Online Piracy Act (SOPA). "It is going to be a long, hard day [Friday]," said Committee Chairman Lamar Smith (R-TX), who said the markup would wrap up Dec 16. The bill is expected to be voted out of committee. Bill critics fired round after round at the bill, but pushed mostly for delay so that there could be more hearings, and more negotiation, and more "nerds" brought in to give legislators a clearer sense of how the bill could affect cybersecurity, for one thing, and the open Internet for another.
benton.org/node/107290 | Broadcasting&Cable
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TOP INTERNET ENGINEERS WARN AGAINST SOPA
[SOURCE: Washington Post, AUTHOR: Cecilia Kang]
Some of the original engineers of the Internet called for lawmakers to scrap anti-piracy bills, saying the proposals would pose major technological barriers for the Web and stifle new innovations. Engineers have warned that the bills have been introduced without enough consideration of how laws would affect the Internet. Vint Cerf of Google, domain name system software author Paul Vixie, and Internet routing engineer Tony Li were among 83 high-profile engineers who signed an open letter to Congress in opposition to the House Stop Online Privacy Act and Senate Protect Intellectual Property Act. “If enacted, either of these bills will create an environment of tremendous fear and uncertainty for technological innovation, and seriously harm the credibility of the United States in its role as a steward of key Internet infrastructure,” the engineers wrote. Most concerning are proposals in both bills for law enforcement to take down sites that are dedicated to the illegal trade of copyrighted material. By striking down domain names, the legislative proposals would fragment the Internet’s global domain system, they say. They also fear the bills would lead to censorship and put undue burden on Web sites.
benton.org/node/107288 | Washington Post
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THE NIGHTMARISH SOPA HEARINGS
[SOURCE: Washington Post, AUTHOR: Alexandra Petri]
[Commentary] Last night I had a horrifying dream that a group of well-intentioned middle-aged people who could not distinguish between a domain name and an IP address were trying to regulate the Internet. Then I woke up and the Judiciary Committee’s SOPA hearings were on. It’s exactly as we feared. For every person who appears to have some grip on the issue, there were three or four yelling at him. “I’m not a nerd,” said Rep. Zoe Lofgren (D- CA). “I aspire to be a nerd.” “I’m a nerd,” said Rep. Darrell Issa (R-CA). If I had a dime for every time someone in the hearing used the phrase “I’m not a nerd” or “I’m no tech expert, but they tell me . . .,” I’d have a large number of dimes and still feel intensely worried about the future of the uncensored Internet. If this were surgery, the patient would have run out screaming a long time ago. But this is like a group of well-intentioned amateurs getting together to perform heart surgery on a patient incapable of moving. “We hear from the motion picture industry that heart surgery is what’s required,” they say cheerily. “We’re not going to cut the good valves, just the bad — neurons, or whatever you call those durn thingies.” This is terrifying to watch.
benton.org/node/107287 | Washington Post
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COPYRIGHT AND FREE SPEECH
[SOURCE: The Atlantic, AUTHOR: Marvin Ammori]
[Commentary] Free speech has remained a quintessential American ideal, even as our society has moved from the ink quill to the touch screen. But as the Internet paves new avenues for speech, Congress seems to be remembering only some of the lessons of our tradition. While lawmakers continues to understand the potential threat from defamation laws, proposed legislation on copyrights shows that many in Congress are willing to overlook threats to free speech similar to those that overzealous defamation laws undoubtedly create. Congress is considering passing major legislation to change the definitions of online infringement. While supposedly aimed at foreign "rogue sites" like the Pirate Bay in Sweden, the legislation's new definitions would alter the copyright safe-harbor and make platforms for user-generated speech -- including Twitter, Facebook, and YouTube -- liable for copyright infringement committed by users. These sites would have to adopt Big Brother technologies to monitor all their users' activities in order to make sure no user is sharing the latest release from the Twilight series. Making matters worse, the mechanisms for enforcement include cutting off all access to funding, removing sites from search engines, and blocking website addresses in technical ways that threaten the Internet's security and universality. All of this is done in the name of reducing copyright infringement online. Because of the threat to online speech platforms, companies like Tumblr and civil liberties groups like the Electronic Frontier Foundation and Fight for the Future coordinated an "American Censorship Day" in November in protest. Even the European Parliament has launched criticism rooted in speech concerns across the Atlantic Ocean.
benton.org/node/107291 | Atlantic, The
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MORE ON CONTENT

MPAA CAPTIONING PROPOSAL
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
The Motion Picture Association of America has pitched the Federal Communications Commission an alternative timeline and more holistic approach to providing closed captioning for archival Internet-delivered TV shows to avoid what it suggests is the almost-impossible task of tracking down shows re-airing on cable and broadcast individually. On Sept. 19 the FCC released its proposals for implementing the Twenty-First Century Communications & Video Accessibility Act, which requires the FCC, by Jan. 12, 2012, to come up with new regulations requiring closed captioning on IP-delivered video that contained captions when it was first aired on TV. MPAA said its "comprehensive" and "systematic" voluntary approach to captioning was preferable to the scattershot approach proposed by the FCC that would result in random episodes based on the date they were re-aired on television. "Attempting to search for and replace uncaptioned content with captioned content on potentially thousands of Web sites on an episode-by-episode basis is so logistically complex that it would be difficult if not impossible for content owners and their distribution partners to comply." MPAA also argued that the undertaking was so massive that the FCC's timetables -- six months and twelve months for some categories -- was unrealistic, particularly since it would also be working on captioning all new Internet-delivered TV shows going forward. MPAA's proposal is that, within 24 months of the effective date of the rules, content owners would caption all full-length content hosted on their wholly-owned and operated Web sites that is licensed for TV -- broadcast of pay -- and aired on or after Jan. 1, 1998, when the TV captioning requirement first kicked in. Members would pledge within 48 months to provide captions to authorized third-party Web sites of all theatrical films produced on or after Jan. 1, 1998 and licensed for TV.
benton.org/node/107274 | Broadcasting&Cable
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PUBLISHERS DON’T GET E-BOOK PRICES
[SOURCE: GigaOm, AUTHOR: Mathew Ingram]
When the major book publishing firms signed an agreement with Apple that allowed them to control the prices for their e-books — unlike the deal they had with Amazon, which gave the online retailer the right to cut prices if it wanted to — they probably thought they had won a major battle. But as a Wall Street Journal story points out, they are still shooting themselves in the foot when it comes to e-book prices, by keeping them artificially high in an attempt to shore up their profit margins and protect their existing print business. In the long run, that pricing model could wind up doing far more damage than the model it replaced. The Journal piece notes that e-book prices, particularly for some best-selling and popular titles, are in many cases actually higher than prices for the comparable print version. And how do publishers justify doing this? Among other things, they claim that consumers are actually willing to pay more for the e-book version of a novel because of the convenience and other features that they get with an electronic edition — the ability to search, make highlights, and so on. This sounds like a giant case of wishful thinking, and there is mounting evidence to indicate it is just that.
benton.org/node/107268 | GigaOm
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INTERNET

APPS VS THE WEB
[SOURCE: GigaOm, AUTHOR: Mathew Ingram]
George Colony, the chairman and CEO of Forrester Research, re-ignited a minor firestorm recently, with a presentation at the LeWeb conference in which he argued that the web is dead, and being replaced by the app economy — with mobile and smartphone apps that leverage the cloud or other services rather than the open web. That sparked some strong responses from longtime open-web advocates such as RSS pioneer Dave Winer, who argued that apps are not the future, and others who compared them to the “interactive” CD-ROMS of the 1990s. Do apps necessarily mean the death of the web, and if so doesn’t that mean we are losing something important? Colony (whose presentation is here and slides are here) argued that the “app Internet” is the future in part because of the continuing increase in computing power — both in the cloud, where giant server farms store and process our data, and in the devices we hold in our hands (in the 1990s, according to Forrester, the iPad2 would have been one of the most powerful computers in the world). But bandwidth hasn’t kept up with these changes, said Colony, and therefore the web as we know it has to give way to a world of apps that process and display the data coming from services in the cloud.
benton.org/node/107269 | GigaOm
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WIRELESS/SPECTRUM

FCC SPECTRUM AUTHORITY
[SOURCE: Talking Points Memo, AUTHOR: Reed Hundt]
[Commentary] With an approval rating that is heading for sub-zero, Congress would do well to take this advice on many subjects. But the one topic I'm focusing on -- as the former chairman of the Federal Communications Commission -- is just this: please do not tell the FCC how to auction spectrum. If there is one thing that all should agree that the much-maligned FCC has done well since the early 1990s, under Democratic and Republican chairs, it is spectrum auctions. Yet this is the one thing the Republican majority wants to condition, limit and micromanage, and almost certainly foul up. The bill that passed the House earlier this week would tell the FCC how to sell spectrum. It would tell the FCC who should be allowed to bid. It would tell the FCC not to grant spectrum for the unlicensed uses that include, for example, the way many people use Wi-Fi to connect from their laptop to a router in or near their cable box. It would even tell the FCC how to hold auctions. In all these respects, Congress would break, by pretending to fix, the methods and techniques that the FCC has perfected, for the benefit of the taxpayers and to the envy of every spectrum agency in the world.
benton.org/node/107264 | Talking Points Memo
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PLEASE DON’T KILL WHITE SPACES
[SOURCE: GigaOm, AUTHOR: Stacey Higginbotham]
[Commentary] The spectrum bill that passed the House this week will make any technologist weep. I know the tech community is upset over the Stop Online Piracy Act (SOPA), but this bill represents a somewhat geekier threat -- killing more unlicensed spectrum. So Silicon Valley may want to get active over this one, too. The House version of the bill will ensure that none of the airwaves auctioned off from the digital TV band will be used for unlicensed wireless, where services such as Wi-Fi or white spaces broadband exist. So far this bill eliminates more unlicensed spectrum, which is a problem as our demand for more mobile data threatens to push mobile operators into the red. But in many of the predictions of a looming data tsunami the importance of Wi-Fi, (which relies on unlicensed airwaves) goes understated. But, instead of focusing more on delivering licensed airwaves to handle the demand for mobile broadband, the industry, FCC and Congress should be looking at ways to prioritize what types of traffic need to run over licensed airwaves.
benton.org/node/107267 | GigaOm
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NAB LIKES SPECTRUM BILL
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
National Association of Broadcasters President Gordon Smith said he recognizes that spectrum auctions are a "footnote" in the debate over the end-of-the year legislative package currently being debated and negotiated on Capitol Hill. "But we happen to be a footnote that is a pay-for," said the former Oregon senator, "and that is pretty valuable right now on Capitol Hill." Smith was referring to the fact that the auctions are slated to provide $15 billion or so for deficit reduction after broadcasters are compensated for giving up or repacking spectrum and an emergency broadband communications network is paid for. Smith said he expected spectrum auctions would be included in whatever must-pass bill passes. He said NAB is OK with that so long as broadcaster protections in the current House-passed version of the legislation is preserved, particularly including one directing the FCC to resolve issues with stations on the border with Canada and Mexico. He also said he appreciated the Senate version, but that the "last pieces" NAB needed to give consumers service without interference and broadcasters to move without any more "detriment" than they included in the switch to digital, was provided in the House bill, which had more protections for broadcasters.
benton.org/node/107293 | Broadcasting&Cable
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AT&T PICKY ABOUT SPECTRUM
[SOURCE: GigaOm, AUTHOR: Kevin Fitchard]
AT&T’s acquisition of T-Mobile may be on hiatus, but Ma Bell hopes to secure a consolation prize. The Federal Communications Commission is set to approve its purchase of Qualcomm’s 700 MHz Flo TV spectrum, allowing AT&T to build a more powerful LTE network. But the FCC may impose restrictions on the band to make it easier for small operators to roam on AT&T’s network and get a hold of the choicest new 4G smartphones. AT&T isn’t happy about those restrictions and is threatening to scrap the deal if they’re imposed. For an operator that claims to be facing a spectrum crunch, AT&T is awfully finicky about the spectrum it’s buying.
benton.org/node/107270 | GigaOm
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CAR CELL PHONE BAN
[SOURCE: Washington Post, AUTHOR: Deborah Hersman]
[Commentary] After completing its investigation of a 2010 highway accident in Gray Summit (MO) where a pickup driver who had been texting ran into a truck and set off a series of collisions that killed two and injured 38, the National Transportation Safety Board (NTSB) issued its strongest recommendation yet on distracted driving. The board called for the 50 states and the District to ban the non-emergency use of portable electronic devices for all drivers. The safety recommendation also urges targeted communication campaigns to inform motorists of the new laws and suggests using NHTSA’s model of high-visibility enforcement to support these bans. The level of distraction will only rise as new handheld devices are released each year and the automotive industry develops ever more sophisticated in-vehicle infotainment systems. A partnership between Intel and Toyota is exploring “ways to integrate vehicles with the home to provide a seamless connection across all areas of people’s lives.” Yet what is the price of that seamless connection? It’s too high. Just ask the families of those 3,092 people who died last year. We are still learning what the human brain can — and cannot — handle. We know that there are four types of driver distraction — visual, aural, manual and cognitive — and that the use of portable electronic devices involves several, if not all. At the NTSB, our charge is to investigate accidents, learn from them and recommend changes. In Gray Summit and on highways across the United States, thousands of people were killed last year in the blink of an eye. In the typing of a text. In the push of a send button. It’s time to put a stop to distraction. Just because we can stay connected when we drive does not mean we should. No call, no text, no update is worth a human life.
[Hersman is chairman of the National Transportation Safety Board.]
benton.org/node/107298 | Washington Post
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BAN IS UNREALISTIC
[SOURCE: San Francisco Chronicle, AUTHOR: Editorial staff]
[Commentary] The National Transportation Safety Board certainly attracted attention this week with its recommendation that states ban all forms of cell-phone use while driving - even with hands-free devices. As a practical matter, such a ban is not going to happen - nor should it. Americans are too attached to their cell phones and their cars to break their 24/7 dependence on either. An attempt to ban all calls would inspire a revolt that would make the Occupy Wall Street and Tea Party uprisings seem quaint by comparison. Still, the board's recommendation - based on evidence of crashes in which electronic distraction was a significant factor - should give pause to those who allow their driving duty to become secondary to that very important call. Responsible drivers limit their call time, use hands-free devices and never lose sight of their obligation to keep their eyes - and minds - on the road. They should not be punished for the recklessness of drivers who can and should be ticketed for breaking existing laws.
benton.org/node/107297 | San Francisco Chronicle
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OWNERSHIP

AT&T INVESTORS AT RISK
[SOURCE: Bloomberg, AUTHOR: Scott Moritz]
AT&T’s endangered $39 billion takeover of T-Mobile USA could create greater risk for bondholders if it’s killed and the company opts to boost stock buybacks or spectrum purchases, according to Fitch Ratings. Without the benefits the deal would bring, AT&T could increase share buybacks beyond “moderate levels,” Fitch said. “AT&T’s need to enhance its capacity could lead to a rise in capital spending and/or the acquisition of spectrum through other transactions,” according the report. “We would evaluate those negative factors in the context of the company’s strong free cash flow and its capital spending flexibility,” the Fitch report said. The report also says a scrapped deal could have “knock-on effects” for the credit of other players in the industry including T-Mobile which could have trouble remaining “independently viable and competitive.” Should AT&T decide to end the deal, it will pay T-Mobile parent Deutsche Telekom AG a $3 billion cash fee. Deutsche Telekom has said it values the total breakup package at as much as $7 billion, including lower charges for its customers to terminate calls on AT&T’s network.
benton.org/node/107272 | Bloomberg
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CABLE SUBS TAKE BROADBAND, TOO
[SOURCE: JSI Capital Advisors, AUTHOR: Richelle Elberg]
Cable providers may be losing video connections, much like telephone companies are losing their legacy voice lines, but they are steadily improving their penetration of voice and broadband services. At the end of the day, virtually all providers—cable and ILEC—are offering triple-play bundles and providing customers with monthly net savings to buy all services. So where historically the cable provider and the ILEC would share the customers in a given market, today it’s a full-blown market share war: If I go with the cable provider, I will take my voice and broadband services from it…if I go with the ILEC, I’ll be looking to buy video and broadband services from it. The jury is still out on which sector will come out on top; it’s no doubt more likely that certain companies within both sectors will come out on top within their respective markets. In the third quarter, the public cable companies were providing voice service to 43.9% of basic video subscribers, up from 39.5% at the end of last year. Impressively, 81.5% of basic cable connections were also taking broadband services from their cable provider, up 550 basis points this year-to-date. Looking at penetration based on homes passed is more telling, however. Here, cable operators were providing broadband service to 35.5% of homes passed and voice penetration of homes passed was just more than 19%.
At the end of the third quarter, the public ILECs posted average broadband penetration of voice lines of 42.3%, up 270 basis points versus the end of last year, and up 100 basis points in the quarter. The median was 37.1%, up from 35.2% at year end. At the high end, Shenandoah Telecom’s broadband penetration far exceeded 100% due to its cable acquisitions over the past year. In fact, due to the altered business mix at Shentel, we’ll be reclassifying the company as a cable operator in future quarters.
benton.org/node/107262 | JSI Capital Advisors | JSI Capital – ILECs
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BROADCAST/CABLE

COMMENT SCHEDULE FOR BROADCAST REPORTING REQUIRMENTS
[SOURCE: Federal Communications Commission, AUTHOR: Public Notice]
On November 10, 2011, the Federal Communications Commission adopted a Notice of Inquiry in the Matter of Standardizing Program Reporting Requirements for Broadcast Licensees. In the Standardizing Reporting Notice of Inquiry (NOI), the FCC seeks comment on a proposal to replace the issues/programs list that television stations are required to place in their public files with a streamlined, standardized disclosure form that will be available to the public online.
Comments in the proceeding are due January 17, 2012; reply comments are due January 30, 2012.
benton.org/node/107284 | Federal Communications Commission
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CALM ACT IMPLEMENETATION
[SOURCE: TVNewsCheck, AUTHOR: Frank Beacham]
The new Federal Communications Commission rules aimed at quieting loud commercials and promos take a light approach to compliance and enforcement, industry experts say. For finding trouble, the FCC will rely of complaints from viewers and will take action only if it finds "a pattern or trend." The rules don't require broadcasters to continuously monitor syndicated and network programming for compliance. However, "large" broadcasters will have to perform annual spot checks of imported programming if it hasn't been certified to be in compliance.
benton.org/node/107273 | TVNewsCheck
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TOUGH SLEDDING FOR TV
[SOURCE: AdWeek, AUTHOR: Anthony Crupi]
In what’s shaping up to be an annus horribilis for the broadcast networks, ratings for returning series are plummeting and only a few newcomers are finding an audience.
Eleven weeks into the 2011-12 TV season, ratings for a staggering 32 series are down by 10 percent or more, while another eight returning shows are off by single-digit percentages. Of the 56 veteran programs—a roster that includes newsmagazines, reality series, and Sunday Night Football—71 percent are experiencing year-over-year declines in the core 18-49 demo.
benton.org/node/107271 | AdWeek
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SPORTS TAX
[SOURCE: New York Times, AUTHOR: Brian Stelter, Amy Chozick]
Are you ready for some football? You are paying for it regardless. Although “sports” never shows up as a line item on a cable or satellite bill, American television subscribers pay, on average, about $100 a year for sports programming — no matter how many games they watch. A sizable portion goes to the National Football League, which dominates sports on television and which struck an extraordinary deal this week with the major networks — $27 billion over nine years — that most likely means the average cable bill will rise again soon. Those spiraling costs are fraying the formerly tight bonds between the creators and distributors of television. Cable channels like ESPN that carry games are charging cable and satellite operators more money, and broadcast networks are now doing the same, demanding cash for their broadcast signals and using sports as leverage. And higher fees are raising concerns across the industry that cable bills may be reaching the breaking point for some consumers who are short of money. The NFL contracts announced this week “will surely enrich N.F.L. owners and players just as much as it will impoverish all pay TV subscribers, particularly those who will never watch an NFL game,” said Matthew M. Polka, the president of the American Cable Association, which represents small cable operators. His group wants government officials to step in and make it harder for channel owners to demand higher fees for carriage and drop the channels when operators disagree.
benton.org/node/107304 | New York Times
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TELECOM

10TH CIRCUIT GETS USF CHALLENGES
[SOURCE: The Hill, AUTHOR: Brendan Sasso]
A judicial panel randomly selected the 10th Circuit Court of Appeals in Denver (CO) to hear challenges to the Federal Communications Commission's order earlier this year to convert a multibillion-dollar telephone fund into a subsidy to expand Internet access. The panel consolidated 13 separate lawsuits from telephone companies and state public utility commissions into one proceeding. The lawsuits all allege that the agency's order was "arbitrary and capricious" and a "departure from reasoned decision-making." Groups filing challenges include AT&T, C Spire Wireless (formerly Cell South), Halo Wireless, the National Association of State Utility Consumer Advocates, the National Telecommunications Cooperative Association and the Choctaw Telephone Company. Public utility boards in Pennsylvania, Vermont and Ohio have also joined the suit.
benton.org/node/107286 | Hill, The
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REQUEST FOR CONNECT AMERICA FUND COST MODELS
[SOURCE: Federal Communications Commission, AUTHOR: Public Notice]
On November 18, 2011, the Federal Communications Commission released the Universal Service Fund/Intercarrier Compensation Transformation Order, which comprehensively reforms and modernizes the universal service and intercarrier compensation systems into a new Connect America Fund (CAF) to ensure that robust, affordable voice and broadband service are available to Americans throughout the nation. Among other things, the FCC adopted a methodology for providing CAF support in areas served by price cap carriers that will use a forward-looking cost model to estimate the costs of deploying broadband-capable networks in high-cost areas and identify at a granular level the areas where support will be available. Using the cost model, the FCC will offer each price cap local exchange carrier (LEC) annual support for a period of five years in exchange for a commitment to offer voice service across its service territory within a state and broadband service to supported locations within that service territory. The FCC also intends to use the forward-looking cost model to identify extremely high-cost and remote areas (in both price cap and rate-of-return territories) that should receive support from the Remote Areas Fund. As with the current model, the FCC expect that the new model will be readily available to support recipients and the public for their ongoing use.
The goal is to adopt a specific model to be used for estimating support amounts in price cap areas by the end of 2012 in order to provide support beginning January 1, 2013. To meet this timetable and to ensure that interested parties have adequate time to evaluate the models and inputs under consideration, the Wireline Competition Bureau requests parties to submit forward-looking cost models, consistent with the FCC’s order, for consideration in this proceeding as soon as possible, but no later than February 1, 2012. Parties should notify the Bureau of their intention to do so no later than three days after publication of this public notice in the Federal Register or by December 30, 2011, whichever comes later, so that there is sufficient time before the February 1 deadline to craft the terms of any protective order(s) necessary to resolve any issues related to licensing of third party data and making appropriate arrangements for providing access to the public
benton.org/node/107283 | Federal Communications Commission
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PSTN TRANSITION WORKSHOP
[SOURCE: Connected Planet, AUTHOR: Joan Engebretson]
As Federal Communications Commission Wireline Bureau Chief Sharon Gillett described it, an FCC workshop about transitioning the public switched telephone network (PSTN) to modern technology was aimed at separating the baby from the bath water. The workshop was a follow-up to a workshop last week that also looked at PSTN transition issues. Most of the people participating in the Dec 14 workshop seemed to agree that certain things -- such as the SS7 network and TDM interconnection -- belong, sooner or later, in the bath water. But there was considerably less agreement about what constitutes the baby, with no definitive answers to questions such as whether carrier of last resort obligations should be preserved and whether copper loops should be retained for use by competitive carriers. Far from reaching any kind of consensus or game plan, the workshop’s chief value was in highlighting issues that some might not previously have considered:
Today’s phone numbering system provides a way for callers served by virtually any service provider in the world to reach one another. What will replace that system has yet to be determined.
A new term to add to the PSTN transition lexicon is “corner case”—referring to an application that relies on today’s PSTN and is at risk of being painted into a corner as the PSTN transitions to newer technologies. Examples include security systems, text telephones used by deaf people and others.
Some workshop participants argued that IP networks are more reliable than traditional communications networks because they have a higher level of redundancy. But others disagreed, noting that today’s PSTN is self-powered and less vulnerable to power outages.
benton.org/node/107263 | Connected Planet | JSI Capital Advisors
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GOVERNMENT & COMMUNICATIONS
PRIVACY AND CIVIL LIBERTIES OVERSIGHT BOARD
[SOURCE: The White House]
President Barack Obama announced his intent to nominate the following individuals:
David Medine – Chairman, Privacy and Civil Liberties Oversight Board
Rachel L. Brand – Member, Privacy and Civil Liberties Oversight Board
Patricia M. Wald – Member, Privacy and Civil Liberties Oversight Board
[see bios at the URL below]
benton.org/node/107305 | White House, The
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INFOTEC
[SOURCE: Wall Street Journal, AUTHOR: Paul Sonne, Steve Stecklow]
The Department of Commerce is placing restrictions on a person and a company in the United Arab Emirates for supplying Syria with Internet-filtering devices made by California-based Blue Coat Systems. Commerce said it put Waseem Jawad and the Ras Al Khaimah-based company Info Tech, also known as Infotec, on a list of people and institutions determined to "have engaged in activities contrary to U.S. national security and/or foreign policy interests." The measure restricts Jawad and Info Tech from receiving or transferring items that fall under U.S. export controls. Export licenses would be required, which likely would be denied by the U.S. government, according to Commerce Department officials. The Commerce Department action is part of a probe looking into how a set of at least 13 Blue Coat devices ended up censoring the Internet in Syria, a country subject to strict U.S. trade embargoes. Syrian authorities have been brutally cracking down on uprisings in the country for months.
benton.org/node/107302 | Wall Street Journal
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FBI DENIES CARRIERIQ USE
[SOURCE: The Hill, AUTHOR: Brendan Sasso]
FBI Director Robert Mueller told lawmakers that his agency has not used data from Carrier IQ, a controversial cellphone tracking software company, in its investigations. "We have neither sought nor obtained any information from Carrier IQ in any one of our investigations," Director Mueller said in response to questioning from Sen. Al Franken (D-MN). Earlier this week, the FBI denied a news website's request under the Freedom of Information Act to release information about its use of the tracking software, sparking widespread speculation that law enforcement agents were using Carrier IQ to snoop on users. The FBI said any records were exempt from disclosure because they were related to “a pending or prospective law enforcement proceeding.” But Director Mueller said the agency was just using a "standard exemption" and has not actually used Carrier IQ in any investigations. Sen Franken pressed Director Mueller on whether the FBI has obtained Carrier IQ data from wireless companies. "I don't believe so," Director Mueller said, but he added he would have to check.
benton.org/node/107275 | Hill, The
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CYBERSECURITY

BUSINESS AND CYBERSECURITY
[SOURCE: Wall Street Journal, AUTHOR: John Bussey]
Two of the happiest words in the lexicon of a chief executive are "limited liability." Happier still: "virtually no liability at all." Largely for that reason, we may be closer than ever to a battle plan that finally links the arsenals of the U.S. government with the serious needs of business in the fight against global cyberhacking. The plan, outlined in a House Intelligence Committee bill, would spur information sharing between U.S. companies and the government and give business substantial liability protection against customers or others who might sue over the information sharing. And that's not where the protections would end. It's a deal that privacy advocates don't like. But judging from how other cybersecurity legislation—often broader, more complex, and thus controversial— has bogged down in Congress, this effort may be the nation's best bet.
benton.org/node/107301 | Wall Street Journal
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CHINA’S CYBERWAR
[SOURCE: Washington Post, AUTHOR: Editorial staff]
[Commentary] China is waging a quiet, mostly invisible but massive cyberwar against the United States, aimed at stealing its most sensitive military and economic secrets and obtaining the ability to sabotage vital infrastructure. This is, by now, relatively well known in Washington, but relatively little is being done about it, considering the enormous stakes involved. What exactly is happening? Hackers mostly backed by the People’s Liberation Army are trying daily to penetrate the computer systems of U.S. government agencies, defense contractors, technology firms, and utilities such as power and water companies — not to mention the private e-mail accounts of thousands of Americans. To an alarming degree, they are succeeding. This should provide an opportunity for the Obama Administration to more directly confront the problem. It should demand that Beijing shut down the military-backed groups; if it does not do so, they could be subjected to countermeasures, including sanctions against individuals. Congress could also consider legislation punishing companies connected to the Chinese military if the cyberwar does not cease. Yes, such responses have the potential to roil relations between Washington and Beijing. But the Chinese offensive — and the economic and national security threats it poses — is simply too important to ignore.
benton.org/node/107300 | Washington Post
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LABOR

TECH SKILLS SHORTAGE
[SOURCE: Financial Times, AUTHOR: Richard Waters]
Does the solution to the US’s looming technology skills crisis lie in letting 15-year-olds play with computer-directed laser cutters? To a growing band of enthusiasts such as Mark Hatch, who is just as happy to thrust welding torches into the hands of adolescents and simple computer programming tools in front of pre-teens, this is the best way to reverse the waning interest in science and technology among America’s children. TechShop, the small chain of workshops for amateurs of which he is chief executive, is part of what has been termed the “maker movement” – a loose collection of hobbyists and tinkerers bent on bringing the latest manufacturing and digital technology down to a human scale. The collapsing price of equipment made in China has fuelled this movement, says Mr Hatch. Along with simpler, computer-controlled interfaces and new programming techniques, this has made “the tools of the industrial revolution available to all”. He adds: “We’re at the beginning of a big sociological change.”
benton.org/node/107296 | Financial Times
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JOB-DEVOURING TECH
[SOURCE: Financial Times, AUTHOR: Richard Waters]
The technological changes sweeping through working life are having a complex impact as the US struggles with a jobless recovery. On one level, they are creating opportunities and freedom that did not exist before. But the accelerating rate of technological change is also having unsettling effects: replacing some work completely with greater automation or offshoring, depressing pay for others and forcing workers into part-time, marginalized positions as employers discover how to tap into a new virtualized workforce. According to a growing band of academics like Erik Brynjolfsson, a professor at Massachusetts Institute of Technology who studies the impact of technology on businesses, the disruption is only set to get worse. At the heart of the conundrum is why current technological advances, which in previous cycles sustained employment growth even as they have made workers more productive, have become job-devourers.
benton.org/node/107295 | Financial Times
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