May 16, 2012 (FCC Asks Verizon for More Info on Proposed Spectrum Sale)

BENTON'S COMMUNICATIONS-RELATED HEADLINES for WEDNESDAY, MAY 16, 2012

Today – FCC and ARRA Broadband Stimulus Oversight – plus Low power FM http://benton.org/calendar/2012-05-16/

AGENDA
   Preview: Senate FCC Oversight Hearing

SPECTRUM/WIRELESS
   FCC Asks Verizon for More Info on Proposed Spectrum Sale - public notice
   Coalition formed to oppose Verizon spectrum deal [links to web]
   FCC Seeks Comment on US Cellular and Cox Spectrum Deal
   House Commerce GOP on LightSquared/GPS Investigation
   LightSquared pledges to push forward after bankruptcy filing [links to web]
   LightSquared’s bankruptcy is Washington’s failure too - analysis [links to web]
   NTIA: Companies, Agencies Will Need To Share Spectrum
   Groups want White House to accelerate spectrum release
   Google to Expand Mobile-Device Partnerships
   T-Mobile Cutting Another 900 Jobs in Wake of Failed AT&T Deal [links to web]
   Say what, Siri?
   Oracle v. Google patent phase wraps up
   Study: 3G/4G tablets suck up 3X more data than smartphones [links to web]
   Virgin Atlantic lets passengers make calls from the sky [links to web]
   Verizon in $63 Billion Faceoff With AT&T Over Family Plans

INTERNET/BROADBAND
   He said, she said: Is Comcast prioritizing traffic or not? - analysis
   The Facts about Xfinity TV and Xbox 360: Comcast is Not Prioritizing - press release
   States should fold on Internet gambling - editorial
   Report: 75% of Rural Dwellers Say Broadband Important to Quality of Life [links to web]
   How much bandwidth does your office really need? [links to web]

CONTENT
   Apple loses motion to dismiss e-book antitrust suit
   As 17 more states join class action against book publishers and Apple, new details revealed
   Google Says Forced “Sharing” Is a Bug, Not a Feature
   Rep Issa Asks USTR For More Details of Trans-Pacific Trade Deal [links to web]
   Study: More than half of computer users pirate software [links to web]
   Odd couple of music execs have a forward-thinking strategy [links to web]

CYBERSECURITY
   Bipartisan group of senators to talk cybersecurity
   Senators postpone cybersecurity meeting
   Civil liberties groups slam GOP Senate cyber bill
   Sen Wyden: 'Very concerned' about privacy impact of White House-backed cyber bill [links to web]
   US Must Strut Cyber Might to Stop Attacks, Cartwright Says
   Survey: Obama and Romney Should Focus on Cybersecurity [links to web]

EMERGENCY COMMUNICATIONS
   Development of the State and Local Implementation Grant Program for the Nationwide Public Safety Broadband Network - public notice

TELEVISION
   FCC may decide how over-the-top distributors should be regulated
   NAB: OVPDs Should Be Subject to Retransmission, Exclusivity Obligations
   What if TV networks embraced ad skipping? [links to web]
   How broadcasters could have stopped Dish’s Hopper [links to web]
   NBC, Affiliates Take Step Forward in Proxy Arrangement [links to web]
   For TV, campaigns create big winners, losers [links to web]
   Fox News Does Not Make You Dumb: Researchers Respond to Critics

EDUCATION
   Ravitch warns of ed tech’s ‘perils’ [links to web]
   High-tech vs. no-tech: DC area schools take opposite approaches to education [links to web]

GOVERNMENT & COMMUNICATIONS
   Brokaw ‘not crazy’ about Obama-ABC thing [links to web]
   President Obama targets media 'sensationalism' [links to web]

COMPANY NEWS
   Engineering Tricks That Helped Facebook Win [links to web]
   GM to Stop Advertising on Facebook [links to web]
   Facebook urged to 'like' advertisers more [links to web]
   Facebook's New R&D Machine
   The Zuckerberg Challenge - editorial
   UK woes fail to trouble News Corp investors
   Twitter tiptoes further into the media business - analysis [links to web]

STORIES FROM ABROAD
These headlines presented in partnership with:

   ITU's Broadband Commission Studies Impact of Broadband Growth on Economies
   Iran Begins To Lock Out The World From Its Intranet, Beginning With Email
   Finnish court rules open Wi-Fi network owner not liable for infringement
   EU-Microsoft browser deal requires ballot screen in Windows 8
   Rebekah Brooks charged with perverting the course of justice [links to web]
   Baidu to Sell Inexpensive Smartphone [links to web]
   China Telecom sets 1M FTTH subscriber goal for Shanghai [links to web]

MORE ONLINE
   Customer satisfaction in phone companies, TV service fall [links to web]
   Study: Phone companies even on satisfaction [links to web]
   Senator Cornyn seeks expanded visas for foreign high-tech workers [links to web]
   FCC’s McDowell Among 'Most Valuable Policymakers' [links to web]
   Senator Grassley wants answers on Google air fleet leasing at NASA field [links to web]

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AGENDA

FCC OVERSIGHT HEARING
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
Federal Communications Commission Chairman Julius Genachowski will be discussing broadband -- almost exclusively -- when he talks up the FCC's role in maximizing the power of communications technology at a Senate Commerce Committee FCC oversight hearing May 16, at least according to his opening statement. In fact, he uses the term "broadband" 18 times, and "wireless" nine, while there are no references to "broadcasting." He does refer to TV, but only to make the point that the FCC has already freed up some broadcast spectrum for unlicensed devices in the so called TV "white spaces." There is also an oblique reference to broadcasting when the chairman refers to unleashing "significant amounts of prime spectrum through incentive auctions."
Newly-sworn-in FCC Commissioner Jessica Rosenworcel, appearing before the Senate committee she most-recently staffed, will give a shout out to incentive auctions and the FCC's history of delivering the goods -- raising $50 billion for the treasury. She also says she is confident that the "right mix of engineering and economics," the incentive auctions can follow in that tradition and, so long as the FCC follows the law, be "fair to all stakeholders."
FCC Commissioner Ajit Pai, also new to the job, wants the Commission to move swiftly to reclaim spectrum from broadcasters, as well as free up more bandwidth currently in government hands. Commissioner Pai also put in a plug for Universal Service Reform, saying it was a necessity, not a luxury, and pledged to roll up his sleeves on media ownership, saying "Our efforts must reflect the changing nature of our nation's media landscape while at the same time preserving the Commission's commitment to the core values of competition, diversity, and localism."
benton.org/node/123252 | Broadcasting&Cable | B&C – Rosenworcel |
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SPECTRUM/WIRELESS

FCC ASKS VERIZON FOR MORE INFO ON PROPOSED SPECTRUM SALE
[SOURCE: Federal Communications Commission, AUTHOR: Rick Kaplan]
The Federal Communications Commission seeks additional information from Verizon about an announcement the company will conduct “an open sale process for all of its 700 MHz A and B spectrum licenses in order to rationalize its spectrum holdings.” Verizon said the sale is contingent of the close of its proposed purchase of spectrum from cable operators. The FCC has two questions (in 5 parts) and requests a reply by May 22, 2012.
benton.org/node/123255 | Federal Communications Commission | Reuters | GigaOm | The Hill
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US CELLULAR-COX
[SOURCE: Federal Communications Commission, AUTHOR: Public Notice]
United States Cellular Corporation and Cox TMI Wireless have filed an application seeking to assign four Lower 700 MHz Band A Block licenses from Cox to USCC. The Applicants state that the additional spectrum will enable USCC to offer innovative wireless services and improve and enhance its voice and data service offerings to the public in thirty Cellular Market Areas (CMAs) in Iowa, Kansas, Missouri, Nebraska, and Oklahoma. Preliminary review of the application indicates that USCC would hold, post transaction, a maximum of 61 megahertz of spectrum below 1 GHz in 29 counties across six CMAs and a maximum of 49 megahertz of spectrum below 1 GHz in an additional 25 counties across five CMAs.
Petitions to Deny the transaction are due May 29, 2012. Oppositions are due June 8, 2012. Replies are due June 15, 2012
benton.org/node/123254 | Federal Communications Commission
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HOUSE LETTER ON FCC AND LIGHTSQUARED
[SOURCE: House of Representatives Commerce Committee]
House Commerce Committee Chairman Fred Upton (R-MI), Communications and Technology Subcommittee Chairman Greg Walden (R-OR), and Oversight and Investigations Subcommittee Chairman Cliff Stearns (R-FL) issued a statement on the ongoing investigation into the Federal Communications Commission's handling of the license and waivers granted to support deployment of a terrestrial broadband network by LightSquared, potential GPS interference issues, and the FCC's continued management of the nation's airwaves:
“Several months ago, the committee requested more information on the interference dispute between LightSquared and GPS to better understand the actions taken by the FCC in approving the deployment of a terrestrial network using a license originally granted for satellite service. In addition to the broader broadband implications, the FCC’s rushed process resulted in special waivers and conditions and billions of wasted dollars. Now, more than ever, we need to get to the bottom of how we got this far down a dead-end road. There are many unanswered questions, specifically about whether the FCC’s own objectives led to sloppy process. We are continuing to examine the information we’ve received so far to determine what happened and how it can be avoided in the future.”
benton.org/node/123244 | House of Representatives Commerce Committee | B&C
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NEED TO SHARE SPECTRUM
[SOURCE: National Journal, AUTHOR: Josh Smith]
Government agencies can't be expected to use spectrum as efficiently as private companies, an official with the National Telecommunications and Information Administration told congressional staffers. The diverse ways that federal agencies use spectrum range from unmanned aerial vehicles to emergency radio communications. That, NTIA deputy associate administrator Karol Nebbia said, means it's not easy to completely clear government spectrum for use by private companies. Nebbia and Jon Leibovitz, deputy chief of the Federal Communications Commission's Wireless Telecommunications Bureau, joined congressional staffers for a Capitol Hill briefing hosted by the Information Technology and Innovation Foundation on the growing demand for spectrum. Nebbia's arguments sync with an increased push by NTIA officials to find ways to share scarce spectrum with private companies, rather than squeeze government users onto other bandwidths.
benton.org/node/123241 | National Journal
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SPECTRUM FOR WIRELESS
[SOURCE: The Hill, AUTHOR: Andrew Feinberg]
A number of technology and telecommunications industry groups want President Barack Obama to speed up the government's release of valuable radio spectrum. The Information Technology Industry Council along with CTIA and the High Tech Spectrum Coalition sent a letter to the White House, asking the administration to "accelerate the transition of government-owned spectrum to the private sector." Last year the administration launched the National Wireless Initiative (NWI), which was meant to bring wireless broadband to 98 percent of households. But NWI goals can only be reached by clearing bands of government-held spectrum, the groups said. "If policymakers do not act in the short-term to clear additional spectrum for licensed mobile broadband use, our country’s networks will become increasingly strained, and the U.S. hold on mobile broadband leadership will start to wane,” they wrote.
benton.org/node/123219 | Hill, The | B&C
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GOOGLE EXPANDING PARTNERSHIPS
[SOURCE: Wall Street Journal, AUTHOR: Amir Efrati]
Google plans to give multiple mobile-device makers -- rather than just one partner -- early access to new releases of its Android mobile operating system and to sell those devices directly to consumers, said people familiar with the matter. Google's strategy is a shift from its previous practice, when it partnered with only one hardware maker at a time to produce seven "lead devices" that showed off the newest Android software features, before releasing the software to other device makers. The change is a bid to exert more control over the apps that run on smartphones and tablets powered by Android, thus reducing the influence of wireless carriers over such devices, these people said. The plan also aims to assuage concerns of smartphone and tablet manufacturers that build devices using Android, many of whom are wary of Google because of its pending acquisition of device-maker Motorola Mobility Holdings, these people said. Many manufacturers fear Google will try to boost the struggling Motorola business at their expense, something Google has assured them won't happen.
benton.org/node/123248 | Wall Street Journal
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SAY WHAT, SIRI?
[SOURCE: Los Angeles Times, AUTHOR: Michelle Maltais]
Your iPhone has been brainwashed, reprogrammed even. Apple is putting words in Siri's mouth. That seems to be what a Nokia spokeswoman has said about Siri's response on which smartphone is tops. Apple offers Siri up as an intelligent assistant, "but clearly if they don't like the answer, they override the software," said Nokia spokeswoman Tracy Postill, according to the Sydney Morning Herald. Last week, a video and post made the rounds showing how Siri pointed to Nokia's Lumia 900 when asked about the top phone. When we asked her highness the same question on Friday, she became rather irked that we would deign to even suggest any phone but she was superior. Her replies to our query went from "the one in your hand" to "You're kidding, right?" (If she were actually human, there might have been a neck roll, eye narrowing or lip pursing to accompany her answer -- but, trust me, it was implied in her semi-robotic tone. Everyone around me heard it.) To be fair (to Siri, I guess), in the video she never actually uttered the words "Lumia 900." Instead, after much thought, she said "I found this for you" and called up a Wolfram Alpha search results page, gleaned by sifting through reviews and comments.
benton.org/node/123226 | Los Angeles Times
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ORACLE-GOOGLE UPDATE
[SOURCE: ars technica, AUTHOR: Joe Mullin]
Legal teams in Oracle v. Google are preparing to present closing arguments May 15, after a flurry of motions filed over the weekend didn't convince the judge overseeing the case to change the structure of the trial. The central copyright question in the trial—whether Google infringed the "structure, sequence and organization" of 37 Java APIs—may need to be retried. Over the weekend, Oracle asked for the final, upcoming "damages phase" of the trial to be delayed until that retrial could take place. Judge Alsup rejected that idea, instead insisting that Oracle must ask the jury for damages on the small copyright win that it has, or accept a judicial decision that would be limited to statutory damages, which would max out at $150,000 per work. Google said it's willing to accept Judge Alsup's decision on damages and avoid a jury altogether, but Oracle won't agree.
benton.org/node/123204 | Ars Technica
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FAMILY DATA PLANS
[SOURCE: Bloomberg, AUTHOR: Olga Kharif, Scott Moritz]
Verizon Wireless and AT&T are both preparing to roll out shared-data pricing plans this year. Whoever makes the first move will transform the way the industry charges for wireless service. The new shared plans, which may be announced as early as next month, would let customers split one bucketful of Internet data between their phones, iPads and other wireless devices, providing an economical option for families, small businesses or people with a lot of Web-connected gadgets. With billions of dollars at stake, Verizon and AT&T are hesitant to test the waters first, said Chetan Sharma, an independent wireless analyst. Getting the approach right could reduce customer turnover and get more users to embrace data plans, which brought in $62.7 billion industrywide last year. A wrong move would lower the amount of money that subscribers pay, while increasing network traffic and the cost of maintaining networks.
benton.org/node/123283 | Bloomberg
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INTERNET/BROADBAND

COMCAST PRIORITIZING TRAFFIC?
[SOURCE: GigaOm, AUTHOR: Stacey Higginbotham]
Comcast, once again, has some explaining to do. An engineer has conducted experiments that he says show the nation’s largest broadband provider is prioritizing traffic -- something it’s not supposed to do under the conditions the government imposed when the cable company bought NBC-Universal. At issue are the methods and arguments Comcast uses to exempt some of its Xfinity on-demand traffic from its broadband cap. Comcast categorically denies it’s prioritizing traffic, but the issue is sure to dog the cable provider in the near term, much like the back and forth that ensued back in 2007 when it was caught blocking P2P traffic.
benton.org/node/123239 | GigaOm
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COMCAST INTERNET TRAFFIC
[SOURCE: Comcast, AUTHOR: Tony Werner]
Your Xbox 360 running Xfinity TV On Demand essentially acts as an additional cable box for your existing cable service. This is an exciting development because it enables consumers to watch their cable service video-on-demand in their homes through a device other than a traditional set-top box — in this case, using a gaming console that delivers Xfinity TV On Demand over our managed network. Rather than delivering this content in the traditional way we deliver our cable services (which is often referred to as video over QAM) or delivering it over the Internet (as, for example, a Netflix or Hulu Plus would do), we are sending that cable service using IP technology to the Xbox over our managed network. Specifically, we provision a separate, additional bandwidth flow into the home for the use of this service — above and beyond, and distinct from, the bandwidth a customer has for his or her regular Internet access service. Our Xfinity TV content is provided through the Xbox over that separate service flow, and therefore does not use a customer's provisioned Internet service capacity. We use Differentiated Services Code Point ("DSCP") markings to mark the Xfinity TV packets to identify these packets so our network knows that these packets must be transmitted over the separate service flow from the CMTS to the customer's cable modem.
There's also been some chatter that we might be prioritizing our Xfinity TV content on the Xbox. It's really important to us that we make crystal clear that, in contrast to some other providers, we are not prioritizing our transmission of Xfinity TV content to the Xbox (as some have speculated). While DSCP markings can be used to assign traffic different priority levels, that is not their only application — and that is not what they are being used for here.
benton.org/node/123280 | Comcast
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STATES AND ONLINE GAMBLING
[SOURCE: The Christian Science Monitor, AUTHOR: Editorial staff]
[Commentary] A number of states are now poised to let their residents gamble online in games of chance. With a few thumb punches on a smart phone, someone could wager a bet in a poker match as easily as texting a message – only with a predictable loss of money. This lure of adding revenue and jobs, combined with the industry’s hefty donations to the campaign coffers of politicians, is pushing a number of states to act now. But it was also the Obama administration that winked its approval with a Justice Department ruling last December that in-state online bets – except for sports bets – would not violate the Wire Act of 1961. That ruling may not be the final word if it reaches the courts. And to his credit, Mitt Romney has spoken out against online gambling – in Nevada before its caucuses. Online gambling is a tempting path to easy wealth – for both states and gamblers. But as Sheldon Adelson, chairman of Las Vegas Sands Corp., has said: “You don’t want a casino in every home.” The states should not dig themselves deeper into a business that promotes the notion that luck, rather than hard work, virtue, and talent, can get someone ahead. There’s no gambling app for that.
benton.org/node/123286 | Christian Science Monitor, The
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CONTENT

APPLE LOSES ON MOTION
[SOURCE: Los Angeles Times, AUTHOR: Salvador Rodriguez]
Apple was unable to have an antitrust lawsuit over the price of e-books dismissed. The company and two book publishers were denied their bid to dismiss the class action lawsuit. In addition to the class action, the Justice Department sued Apple and five major book publishers in April, alleging Steve Jobs and the top executives at the publishing firms conspired to raise the price of e-books.
benton.org/node/123225 | Los Angeles Times | paidContent.org
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MORE STATES JOIN CLASS ACTION
[SOURCE: paidContent.org, AUTHOR: Laura Hazard Owen]
New York, the District of Columbia and fifteen other states have joined the e-book pricing class action suit against Apple, Macmillan and Penguin, bringing the total number of states involved so far to 31 (if you include DC and Puerto Rico). The amended complaint, released May 11, reveals details that were previously redacted, including an e-mail from Steve Jobs. The states’ class action suit, which was filed the same day as the Department of Justice’s lawsuit, alleges that Apple and book publishers conspired to set e-book prices. Unlike the DOJ, the states seek monetary restitution for consumers. (They have already reached a settlement with Hachette, Simon & Schuster and HarperCollins.) The states’ amended complaint makes public information that was redacted from the version filed in April. (It’s not clear why the information was originally redacted.) Much of the now-public information is duplicated in the Department of Justice filing against Apple and publishers, but some of it is new, including an e-mail from Steve Jobs.
benton.org/node/123193 | paidContent.org
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GOOGLE SHARING BUG
[SOURCE: Wall Street Journal, AUTHOR: Peter Kafka]
Google is offering publishers a new tool that lets them force users to “share” a story before they read it themselves. That can’t be right, can it? Not exactly. That scenario is what Gawker’s Scott Kidder encountered when he read a story on Adweek’s site today, but that’s not what’s supposed to happen. Instead Kidder should have had a choice of filling out a one or two question survey or sharing the story on Twitter, Facebook or Google +. Bug, not a feature, says a Google spokesrep, “Generally, Google Consumer Surveys are designed to show a market research question along with an alternate, publisher defined action, such as signing in or sharing a piece of content. Along with the surveys, we also offer a number of controls to prevent abuse of the system. Unfortunately, in rare cases, as a result of these controls, a prompt runs without a survey question included. This is not the intended behavior and we are currently working on a fix.”
benton.org/node/123235 | Wall Street Journal
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CYBERSECURITY

SENATORS TALK CYBERSECURITY
[SOURCE: The Hill, AUTHOR: Brendan Sasso, Andrew Feinberg]
A bipartisan group of senators will discuss pending cybersecurity legislation on May 15, according to aides. Sens. Roy Blunt (R-MO), Jon Kyl (R-AZ), Barbara Mikulski (D-MD) and Sheldon Whitehouse (D-RI) will lead the classified discussion, and all senators are invited, according to aides. The fact that Republican senators are apparently willing to negotiate on the legislation is a positive sign for Democrats, who are pushing a cybersecurity bill that would set mandatory standards for critical infrastructure, such as electrical grids and water treatment plants. Democrats argue the standards are necessary to prevent a catastrophic attack, but many Republicans, including Sen. John McCain (R-AZ), have warned the standards would be ineffective and burdensome.
benton.org/node/123222 | Hill, The
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CYBERSECURITY MEETING POSTPONED
[SOURCE: The Hill, AUTHOR: Brendan Sasso]
A bipartisan group of senators had planned to discuss cybersecurity legislation May 15, but the meeting was postponed until next week. Sens. Roy Blunt (R-MO), Jon Kyl (R-AZ), Barbara Mikulski (D-MD) and Sheldon Whitehouse (D-RI) planned the classified discussion, and all senators were invited. Sen Mikulski said that the meeting was postponed because of markup sessions. Whitehouse explained that the meeting was re-scheduled so that the sponsors of the GOP-backed Secure IT Act would be able to attend. Sen Whitehouse said the purpose of the meeting is to bring lawmakers up to speed on classified information about cyber threats.
benton.org/node/123285 | Hill, The
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OPPOSITION TO CYBERSECURITY BILL
[SOURCE: The Hill, AUTHOR: Brendan Sasso]
Civil liberties groups announced their opposition to the White House's preferred cybersecurity bill last week, but in an open letter on Monday, they said the GOP version is not a "viable alternative." The American Civil Liberties Union, the Center for Democracy and Technology, the Electronic Frontier Foundation and others warned that the Secure IT Act, which is sponsored by Sen. John McCain (R-AZ) and other Republicans, would encourage companies to hand over their customers' private information to the National Security Agency. The civil-liberties groups oppose the Cybersecurity Act, which is backed by Sens. Joe Lieberman (I-CT), Susan Collins (R-Maine) and the White House, but they said the Republican bill could be even worse. "It does not address the concerns many of us have raised with the Cybersecurity Act, and in some respects poses even greater threats to privacy and civil liberties," the groups wrote. "Therefore, SECURE IT is not a viable alternative to the Cybersecurity Act. Both bills require substantial amendments to address these concerns."
benton.org/node/123216 | Hill, The | National Journal
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US MUST STRUT CYBER MIGHT TO STOP ATTACKS, CARTWRIGHT SAYS
[SOURCE: nextgov, AUTHOR: Aliya Sternstein]
The United States must frighten adversaries by displaying an arsenal of operational hacking weapons to fight cyber threats, said retired Gen. James E. Cartwright, who crafted the Pentagon’s current cyber policy before retiring last summer. Some war hawks say the Defense Department should assault opponents publicly to stop hackers, but the department’s July 2011 strategy for operating in cyberspace takes a “deterrence” approach of dissuading enemies from attacking by signaling the strength of U.S. network protections. Cartwright, arguably one of the most tech-savvy leaders to have served at the Pentagon, said an effective deterrence plan requires signaling offensive measures, too. “You have to scare them. You have to convince them that there is a price for any action that is counter to good order and discipline,” he said Monday evening at The George Washington University Homeland Security Policy Institute. “That means you need an offensive capability.” The United States should demonstrate a balance of offensive and defensive maneuvers, said Cartwright, who now sits on the board of directors of defense contractor Raytheon and serves as an analyst at the Center for Strategic and International Studies.
benton.org/node/123194 | nextgov
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EMERGENCY COMMUNICATIONS

NTIA SEEKS FIRSTNET INPUT
[SOURCE: National Telecommunications and Information Administration, AUTHOR: Lawrence Strickling]
The National Telecommunications and Information Administration is issuing a Request for Information (RFI) seeking public comment on various issues relating to the development of the State and Local Implementation grant program, which NTIA must establish pursuant to the Middle Class Tax Relief and Job Creation Act of 2012 to assist state and local governments in planning for a single, nationwide interoperable public safety broadband network. NTIA intends to use the input from this process to inform the development of programmatic requirements to govern the state and local planning grants program.
benton.org/node/123245 | National Telecommunications and Information Administration
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TELEVISION

REGULATING OVER-THE-TOP VIDEO
[SOURCE: Los Angeles Times, AUTHOR: Joe Flint]
In a move that could have far-reaching implications for the development of new distribution systems for content, the Federal Communications Commission is considering changing how it defines a multichannel video programming distributor (MVPD). Currently, MVPDs are considered to be cable and satellite operators such as Comcast and DirecTV. However, Sky Angel LLC, a company that provides programming much the same way as a cable or satellite operator does, but through the Internet -- in the industry term, "over the top," -- wants the FCC to recognize it as an MVPD. The reason Sky Angel seeks this classification grows out of a dispute it is having with cable programmer Discovery Communications. In 2007, Discovery struck a deal to let Sky Angel carry some of its channels on its service. Like its agreements with cable and satellite operators, Sky Angel paid a monthly license fee for the channels. However, two years later Discovery pulled out of its deal. In a filing to the FCC, Sky Angel said prior to that Discovery "never expressed any dissatisfaction with respect to the agreement or Sky Angel’s service." A Discovery spokeswoman declined to comment on why it ended the agreement with Sky Angel. Sky Angel wants MVPD status so it can benefit from an FCC rule known as program access.
benton.org/node/123288 | Los Angeles Times
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NAB ON OVER-THE-TOP VIDEO
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
The National Association of Broadcasters told the Federal Communications Commission that broadcasters were generally supportive of broadband video services, but that the FCC needs to make sure that if they are providing comparable video-delivery services to traditional MVPDs (pay TV providers), those Internet-delivered services are subject to the same carriage and retrans obligations and local station exclusivity and network nonduplication rules as traditional MVPDs. Some NAB network members have a stake in Hulu, while local stations are putting video content online as well, so broadcasters definitely have skin in the MVPD definition game from the broadband side, but in this case NAB is focusing on the fate of TV station signals, their protections and compensation, under an over-the-top video delivery regime.
benton.org/node/123209 | Broadcasting&Cable | National Journal
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FOX NEWS DOES NOT MAKE YOU DUMB
[SOURCE: The Huffington Post, AUTHOR: Peter Woolley, Dan Cassino]
[Commentary] Does Fox News make you dumb? No, but that was the headline generated by news aggregators re-reporting research by Fairleigh Dickinson University's PublicMind. The initial study found that the least informative media were two partisan cable news channels, Fox and MSNBC, which came out at the bottom of twelve sources tested. NPR and Jon Stewart's Daily Show came out on top as the most informative, making the schadenfreude all the more delicious for Fox-haters, and the twisting of the liberal knife-in-the-back all the more painful for Fox fans. But how did it come to that? Overall, Fox viewers were not better or worse than the average respondent at answering the questions. That said, and all salient variables being geekily controlled for, there was not merely a zero effect but a negative effect of Fox News on viewers' ability to answer the questions; meaning that Fox viewers would have done better had they been using almost any other news source, or no news source at all. Results for the similarly partisan MSNBC were... well, similar. The big surprise was that news reports focused almost exclusively on Fox's last place showing, and that the reports went viral. [Woolley is Professor of Comparative Politics at Fairleigh Dickinson University; Cassino is Director of Experimental Research for the University's research group]
benton.org/node/123282 | Huffington Post, The
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COMPANY NEWS

FACEBOOK R&D
[SOURCE: Wall Street Journal, AUTHOR: Shayndi Raice]
For years, Facebook chief Mark Zuckerberg led a loose collection of programmers who dreamed up half-baked products after all-night coding sessions known as "hackathons." They would often remodel the website with no warning, and with little concern for users' opinions. Now, with a user base of more than 900 million and plans for a blockbuster stock debut, Zuckerberg takes a decidedly deliberate approach to product development. That's evident in how the 28-year-old CEO led the creation of "Timeline—Facebook's biggest product launch since 2006—which turns a user's profile into a chronology of life events. The new feature was a culmination of an 18-month process that included dozens of test versions and multiple focus groups.
benton.org/node/123291 | Wall Street Journal
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THE ZUCKERBERG CHALLENGE
[SOURCE: Wall Street Journal, AUTHOR: Holman Jenkins Jr]
[Commentary] Facebook is a fabulous engine for getting users to their personal data. Facebook's alleged mobile vulnerability, highlighted in the company's own offering documents, is exaggerated if the concern is Facebook's inability to make money placing ads in its mobile app. Facebook's mobile app, like its Web version, shouldn't be concerned with how to turn user data into ad revenue. Both should be focused on keeping users in a mood to share. The milking should be done elsewhere, on outside properties that attract eyeballs with more traditional ad-supported media and software (games, etc.). Facebook's Mark Zuckerberg was conspicuous for consulting Steve Jobs on how to build a "great company." He might want to check in with another Steve—Steve Case. He can't be blamed that shareholders bid AOL's stock up to unrealistic levels, and only partly for the failure of AOL Time Warner to live up to an inflated valuation. He would deserve a lot of blame, though, if he hadn't used AOL's highly speculative stock price at least to try to buy his company a future.
benton.org/node/123289 | Wall Street Journal
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NEWS CORP INVESTORS
[SOURCE: Financial Times, AUTHOR: Andrew Edgecliffe-Johnson, Salamander Davoudi]
Charges against Rebekah Brooks and testimony from her and other former senior figures in Rupert Murdoch’s UK newspaper empire have kept the British media and political establishment glued again to investigations into the press over the past week. Yet investors in Murdoch’s $50 billion television, film and publishing group, have paid little attention, instead sending News Corp shares to their highest levels since 2008. Last week’s 5 per cent jump was a reaction to news that the company was doubling the $5bn share buyback program it unveiled last July as the scandal forced it to shut the News of the World and abandon its $12bn-plus pursuit of British Sky Broadcasting. It was also a reminder that, whatever happens next in the unfolding drama, Murdoch has two important points in his favor. The first is that the cable TV networks that provide 60 per cent of News Corp’s operating income are growing even faster than the costs associated with UK investigations. The second is the cash those operations are producing – a net $2.7 billion in the last quarter alone. Even after spending $3.3 billion buying back shares, it ended the period with $10.7bn of cash on a balance sheet with $15.2 billion of borrowings.
benton.org/node/123277 | Financial Times
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STORIES FROM ABROAD
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ITU'S BROADBAND COMMISSION STUDIES IMPACT OF BROADBAND GROWTH ON ECONOMIES
[SOURCE: cellular news, AUTHOR:]
The Broadband Commission for Digital Development, in partnership with ITU, has today released its first country case studies looking in-depth at the state of broadband development in four economies and examining links between broadband and the UN Millennium Development Goals. The case studies, which cover Macedonia, Panama, the Philippines, and Romania, look at the effect of broadband connectivity on economic growth and access to basic services like education and health. They offer regulatory guidance and best practices, showcasing success stories and lessons learned. Romania and Macedonia both provide strong examples of how adopting pro-ICT policies, establishing effective regulatory frameworks and developing strategic private and public partnerships can play a key role in boosting broadband access, affordability and demand.
benton.org/node/123175 | Cellular News
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IRAN BEGINS TO LOCK OUT THE WORLD FROM ITS INTRANET, BEGINNING WITH EMAIL
[SOURCE: Fast Company, AUTHOR: Kit Eaton]
Iran has just required its nationals working in certain institutions to only use its own Iranian-sourced email providers, and to stop interacting with emails received from any other source--effectively forbidding access to the outside world by email. The move affects employees in banks, insurance firms, and telecoms companies. Universities are similarly affected, which also closes off email access by Iran's academics and researchers. The government argues it's to prevent scraping of data from email by foreign entities, but it looks a lot like one of the primary moves to create a long-rumored Iran-only intranet in reaction to the use of the net to foment anti-government resistance and spread news of Iran's treatment of its population.
benton.org/node/123173 | Fast Company
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FINNISH COURT RULES OPEN WIFI NETWORK OWNER NOT LIABLE FOR INFRINGEMENT
[SOURCE: ars technica, AUTHOR: Cyrus Farivar]
Several hundred use a network, someone infringes -- can’t blame the owner. A Finnish District Court has ruled that the owner of an open Wi-Fi network is not liable for copyright infringement by others using that network. “The applicants were unable to provide any evidence that the connection-owner herself had been involved in the file-sharing,” the defendant’s attorneys wrote in an English-language press release on Monday. “The court thus examined whether the mere act of providing a Wi-Fi connection not protected with a password can be deemed to constitute a copyright-infringing act.” The case was brought by the Finnish Anti-Piracy Centre, a coalition of intellectual property rights managers in Finland. The group sued the woman for €6,000 ($7,700) for copyright infringement. The alleged infringement occurred after an audience of several hundred were attending a play at defendant's home on July 14, 2010, and apparently at least one person downloaded some copyrighted material without permission.
benton.org/node/123176 | Ars Technica
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BROWSER DEAL AND WINDOWS 8
[SOURCE: ComputerWorld, AUTHOR: Gregg Keizer]
Microsoft declined to comment when asked whether it believed it's required to offer a ballot screen in Windows 8 to European users for selecting rival browsers in the new operating system's desktop mode. Yet the settlement specifically called out future editions of Windows. In late 2009, Microsoft struck a deal with European Union antitrust regulators that required the company to display a screen in Windows providing download links to other browsers, including Mozilla's Firefox, Google's Chrome, and Opera Software's Opera. "For Windows client PC operating systems after Windows 7, the Choice Screen [the ballot screen] update will first be made available at the general commercial release date of such an operating system and remain in place for distribution ... for the entire duration of these commitments," the document states.
benton.org/node/123179 | ComputerWorld
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