Jan 23, 2009 (House Committee Approves Broadband Stimulus)

BENTON'S COMMUNICATIONS-RELATED HEADLINES for FRIDAY JANUARY 23, 2009

On Monday the New America Foundation hosts the release of a Telecommunications Policy Agenda for the Obama Administration (see http://www.benton.org/node/20679)

GOVERNMENT & COMMUNICATIONS
   The President Orders Transparency
   News Orgs Voice Obama Access Worries
   China says Web crackdown to be "long-lasting"

STIMULUS BILL
   House Commerce Committee Approves Broadband Stimulus
   Cable Modems are Not Enough, We Need Fiber
   Building a 21st Century Broadband Superhighway

DIGITAL TELEVISION
   Rockefeller, Hutchison Compromise On DTV Delay
   Digital Transition Could Bring Significant Audience Loss, Nielsen Says
   Barton: Maybe We Can Avoid DTV Delay
   DTV Coupon Wait-List Tops 2.5 Million
   Qualcomm May Be Stung By Delay In Digital TV Transition

POLICYMAKERS
   Michael Copps named acting FCC chairman
   Obama Picks Critic of Warrantless Wiretapping to lead DoJ's national security division
   Varney To Head DOJ's Antitrust Division
   Obama's got cred in Silicon Valley
   New national cyber adviser to report to Obama
   McNealy is an odd choice to help government with open source strategy

MEDIA OWNERSHIP
   ABC combines TV network, production units
   Tribune Picks Ricketts family to purchase Cubs
   Univision, Televisa Settle Dispute
   Newspapers may seek philanthropy to support news-gathering

QUICKLY -- Verizon and Free Press Agree that Remote Broadband Requires Monopolies; Worm Infects Millions of Computers Worldwide; Younger Americans More Likely to Use Internet TV Than DVR, Study Says; Recession hits mobile-phone market; Lessons learned from inauguration net-traffic spike; It's a tech wreck; Encyclopedia Britannica to allow user edits; Report details upcoming ed-tech trends

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GOVERNMENT & COMMUNICATIONS

THE PRESIDENT ORDERS TRANSPARENCY
[SOURCE: New York Times, AUTHOR: Editorial staff]
[Commentary] President Obama wasted no time in moving to roll back the Bush administration's disgraceful strictures on open government. The new president's actions provided a burst of executive sunshine that Washington badly needs. President Obama's new orders go well beyond the standards of his predecessors, particularly in shutting, not slowing, the revolving-door path from well-connected government veteran to high-salaried corporate lobbyist. The promise of transparency is heartening (though the Obama White House's initial opening day action in crimping photographers' traditional access to ceremonies was not). The president has vowed "a clean break from business as usual," with transparency at the core. The nation welcomes this promise and will be tracking its fulfillment.
http://benton.org/node/21114
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NEWS ORGS VOICE OBAMA ACCESS WORRIES
[SOURCE: Associated Press, AUTHOR: ]
News organizations that cover the White House sparred with the Obama administration on Thursday over access issues for photographers and rules for briefings. Representatives from Obama's press office held a conference call with photo editors, who are concerned that the administration prefers distributing photos taken by a White House photographer in cases where photojournalists have been permitted access in the past. It was unclear whether the two sides had reached any accommodation. The Associated Press, Reuters and Agence France-Presse refused to distribute photos taken by the White House of the new president on his first day in the Oval Office because of the dispute. Still photographers were also not given access to Obama's do-over oath of office administered Wednesday night by Chief Justice John Roberts and an economics meeting on Thursday. Television network bureau chiefs also protested the exclusion of video cameras from the second oath of office.
http://benton.org/node/21113
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CHINA SAYS WEB CRACKDOWN TO BE "LONG LASTING"
[SOURCE: Reuters, AUTHOR: Ben Blanchard]
China sought on Friday to portray its Internet crackdown as a campaign to protect youth from filth and nothing to do with stifling political dissent, with an official promising long-lasting action against "vulgarity." The Internet crackdown has been described by analysts as another step in the Communist Party's battle to stifle dissent in a year of sensitive anniversaries, including the 20th anniversary of the crackdown on the pro-democracy Tiananmen Square protests.
http://benton.org/node/21109
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STIMULUS BILL

HOUSE COMMERCE COMMITTEE APPROVES BROADBAND STIMULUS
[SOURCE: Benton Foundation, AUTHOR: Kevin Taglang]
The House Commerce Committee approved portions of the economic stimulus bill moving through Congress including about $3 billion in grants to expand Internet service in rural and hard-to-serve areas over objections from several Republican members. Committee Chairman Henry Waxman (D-CA) said the $3 billion in grants was aimed at "service providers, infrastructure companies, or a state or unit of local government." Under the plan, the National Telecommunications and Information Administration (NTIA) the agency currently in charge of the DTV transition would have two years to develop a map of broadband availability throughout the United States and post that data on a publicly available Web site. NTIA would also be able to hand out grants to those willing to build out broadband service, wireless voice service, and advanced wireless broadband service. For wireless grants, 25 percent of the money will go toward voice services and 75 percent of the funds will be designated for advanced wireless broadband service. The bill includes a provision opposed by mobile phone companies would require Internet service providers that receive grant money to abide by so-called "open access" principles, which bar providers from discriminating against applications and content requiring more bandwidth. Lawmakers who support the funding say it will create jobs to help jumpstart the ailing economy. A Brookings Institution study found that every one percentage point increase in broadband penetration per year could yield 300,000 jobs.
http://benton.org/node/21105
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DEAR SAUL HANSELL: DOCSIS 3.0 ISN'T ENOUGH, WE NEED FIBER
[SOURCE: App-Rising.com, AUTHOR: Geoff Daily]
[Commentary] Daily responds to yesterday's post by Saul Hansell of the NYTimes who argues there's really little reason to spend big money to buildout broadband in America since cable operators will be able to provide service to 19 out of every 20 homes. Daily argues that Hansell looking at broadband through the paradigm of today and not tomorrow. Only fiber has the capacity to keep up with the demands of the 21st century. Only fiber delivers the reliability we need to created reliable networked experiences. And only by having fiber can we have competition in wireline broadband. He also fails to touch on the upload side of the equation. Every cable DOCSIS 3.0 deployment that Daily has seen is still heavily asymmetric, with much slower speeds upstream than downstream. But if we continue going down this road we're going to enable consumers without empowering creators. We're going to encourage a digital economy where we only import rather than export digital content. We're going to miss the opportunity to encourage a generation of lean-forward mass media, where citizens actively engage in rather than passively watch the rebirth of America in the 21st century. The simple, inescapable truth is that DOCSIS 3.0 or not, we can't build the next 100 years of our economy on a copper infrastructure; we need fiber. Anything less and we're committing ourselves to a future of being good but not great.
http://benton.org/node/21078
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BUILDING A 21ST CENTURY BROADBAND SUPERHIGHWAY
[SOURCE: New America Foundation, AUTHOR: Benjamin Lennett, Sascha Meinrath]
A long-term approach to broadband investment seeking to leverage federal spending on traditional infrastructure (road, bridges and possibly railways) to create a fully interconnected, public access fiber infrastructure to bring high-speed connectivity to nearly every community. The hundreds of billions that will be spent over the next few years to rebuild the nation's crumbling transportation infrastructure provide a unique opportunity for the U.S. to extend critical middle-mile fiber connections, at an incremental cost to taxpayers. The paper calls for the federal government to fund and mandate the installation of conduit and high-capacity, dark fiber bundles along all federally-subsidized and direct federal highway projects. The approach offers a cost-effective and sustainable means to build the middle-mile wholesale fiber links necessary to facilitate high-speed broadband deployment by all providers; creating a foundation for universal and affordable broadband access, improving competition, increasing speeds and lowering prices.
http://benton.org/node/21074
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DIGITAL TELEVISION

ROCKEFELLER, HUTCHINSON COMPROMISE ON DTV DELAY
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
Senate Commerce Chairman Jay Rockefeller and ranking member Kay Bailey Hutchison (R-TX) have stuck a compromise on a bill to move the digital television transition to June 12, 2009. The bill will include a fix for the digital-to-analog converter box coupon program, allow TV stations to switch early to airing only a digital signal without penalty, allow the Federal Communications Commission to recoup some of the costs of delay through sales of spectrum, and allow the FCC to award some spectrum to public safety officials. A Rockefeller aide says the aim is to try and get the bill finished and passed by unanimous consent by the end of the week with the help of Majority Leader Harry Reid (D-NV).
http://benton.org/node/21099
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DIGITAL TRANSITION COULD BRING SIGNIFICANT AUDIENCE LOSS, NIELSEN SAYS
[SOURCE: TVWeek, AUTHOR: Ira Teinowitz]
The pace of homes getting ready for the digital TV changeover is quickening, but with the Feb. 17 transition date approaching, the potential is growing for a significant loss of TV audience for advertisers. There is still the possibility that the switchover date will be postponed, probably to June 12. Nielsen today reported that 6.5 million households—5.7% of the nation—are still totally unready, but that the numbers are higher in some locations and in some demographics. Nielsen said 9.9% of African-American households and 9.7% of Hispanic households are totally unready. Nielsen defines as totally unready households without digital TV sets or converter boxes that aren't hooked up to cable or satellite. Nielsen's numbers suggest a number of big markets—among them Los Angeles, Phoenix and Houston—could temporarily lose more than 10% of Hispanic or African-American households with the digital changeover.
http://benton.org/node/21098
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BARTON: MAYBE WE CAN AVOID DTV DELAY
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
Rep Joe Barton (TX), the ranking Republican on the House Commerce Committee, says he's talked to Commerce Committee Chairman henry Waxman (D-CA) who says that perhaps a delay of the transition to digital-only television can be avoided. Congressional staffers are currently working on the House side "to see if we couldn't yet come together with something so you don't have to do a delay." Rep Barton has proposed fixing accounting rules and allowing NTIA to send out DTV-to-analog converter box coupons currently on a government waiting list. He pointed out that he and former House Telecommunications & Internet Subcommittee Chairman Ed Markey (D-MA) had been working on a bill to fix the mailout accounting problem before it got superseded by the Obama administration's call for the delay and the introduction of the current House bill, introduced by Chairman Waxman, to move the date to June 12. Rep Barton said changing those rules would preclude the need for the $650 million the Obama administration has put in an economic stimulus bill to help fund more converters. He called that figure a "pot of money looking for a problem." He said that "we appropriated sufficient money all these converter box redemptions that are yet to be done. We don't need additional money." Barton said that off the record, nobody in industry wants the delay, but that on the record "nobody wants to be the skunk at the garden party here in the new Obama era."
http://benton.org/node/21082
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DTV COUPON WAIT-LIST TOPS 2.5 MILLION
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
The National Telecommunications & Information Administration's waiting list for DTV-to-analog converter box coupons continues to grow. As of midnight Wednesday, it had reached 2,527,839 coupons from 1,426,717 households, half of which (50.2%) identified themselves as over-the-air only. Those 700,000, even if they came off the waiting list today, would not be able to get their coupons/boxes by the Feb. 17 transition date, NTIA has conceded.
http://benton.org/node/21081
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QUALCOMM MAY BE STUNG BY DELAY IN DIGITAL TV TRANSITION
[SOURCE: Dow Jones, AUTHOR: Roger Cheng]
Qualcomm could be one of the big losers if lawmakers succeed in delaying the move to digital television signals from analog transmissions. A delay would be costly to Qualcomm, which has invested hundreds of millions of dollars in equipment and wireless licenses. MediaFLO, while available on Verizon Wireless and AT&T services, has struggled to add customers. The limited availability is one reason Qualcomm believes the service has received little marketing support from the carriers and, thus, sparse interest from consumers. The biggest expense comes from fees Qualcomm is paying to broadcasters to vacate the analog signals early, allowing them to operate in those regions. The fees were supposed to stop once the transition occurs, but if it gets pushed back to June, Qualcomm has to keep paying them out. It's the biggest expense, which Lauer described as "tens of millions of dollars."
http://benton.org/node/21097
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POLICYMAKERS

MICHAEL COPPS NAMED ACTING FCC CHAIRMAN
[SOURCE: Reuters, AUTHOR: Kim Dixon]
President Barack Obama named Michael Copps the acting chairman of the Federal Communications Commission which regulates telephone, wireless, radio and television communications. Commissioner Copps, an opponent of big media consolidation and further deregulation of big telephone companies, has served as a commissioner on the five-member agency since 2001. He said, "I am honored to be designated today as Acting Chairman of the FCC. I thank President Obama for his confidence in me and for this opportunity to serve. I know that I have a truly gifted and terrific team to work with. I pledge every effort I am capable of to help steer the Commission through its current transition to new leadership." Fellow Commissioner Jonathan Adelstein said, "The FCC will benefit from his leadership, experience, and abiding commitment to the public interest. He understands that public service is a sacred trust with the American people, and he has repeatedly demonstrated his sterling character, willingness to build consensus, and deep commitment to serve all Americans."
http://benton.org/node/21103
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OBAMA PICKS CRITIC OF WARRANTLESS WIRETAPPING FOR SLOT AT JUSTICE DEPT
[SOURCE: New York Times, AUTHOR: Eric Lichtblau]
President Barack Obama tapped David Kris to lead the Justice Department's national security division. Kris has been a critic of the legal rationale for the Bush administration's warrantless wiretapping program. He as a senior Justice Department official in both the Clinton and Bush administrations from 2000 to 2003, and is widely respected in Washington for his knowledge of intelligence law. He is deputy counsel for Time Warner Inc. and adjunct law professor at Georgetown University, and he worked on the Obama transition team at the Justice Department. The selection offers yet another indication of sharp changes in policy at the Justice Department by the incoming leadership.
http://benton.org/node/21102
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VARNEY TO HEAD DOJ'S ANTITRUST DIVISION
[SOURCE: Multichannel News, AUTHOR: Ted Hearn]
President Barack Obama announced Thursday that he intends to nominate former Federal Trade Commissioner Christine Varney, an expert in Internet regulation, to serve as the Department of Justice's top antitrust law enforcer. As chief of the Antitrust Division, Varney will have a key role in reviewing mergers. Varney is partner at Hogan & Hartson, heading the firm's Internet practice group. She was an FTC member from 1994 to 1997, appointed by President Bill Clinton.
http://benton.org/node/21101
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OBAMA'S GOT CRED IN SILICON VALLEY
[SOURCE: Fortune, AUTHOR: Jon Fortt]
Now that the inaugural balls are over, folks in techland are focused on just one item: The BlackBerry. Obama's attachment to his e-mail has a particular resonance in Silicon Valley, where these days creativity seems to be fueled by mobile gadgets and instant communication as much as anything else. Intel Chief Technology Officer Justin Rattner zeroed in on the significance of the new commander-in-chief's desire to stay connected. "Barack Obama is clearly a child of the Information Age, and the fact that he's comfortable and natural with that technology -- there are so many messages tied up in that, not the least of which is, this is a different generation," Rattner said. "It's so frustrating when you hear about some senior government official don't use computers, they have their staff print it all out. That's when you get government officials saying things like 'The Google' and 'The Internets.'"
http://benton.org/node/21100
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NEW NATIONAL CYBER ADVISOR TO REPORT TO OBAMA
[SOURCE: C-Net|News.com, AUTHOR: Elinor Mills]
The administration of President Barack Obama will be hiring a new national cyber adviser, according to the agenda for homeland security released on his first full day in office. The Agenda for Homeland Security, released Wednesday, lists goals for defeating terrorism and improving intelligence gathering, as well as for protecting the nation's information networks and critical infrastructure. The top item under protecting information networks is to strengthen leadership on cyber security by establishing a "position of national cyber advisor who will report directly to the president and will be responsible for coordinating federal agency efforts and development of national cyber policy."
http://benton.org/node/21080
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AN ODD CHOICE TO HELP GOVERNMENT WITH OPEN SOURCE STRATEGY
[SOURCE: ars technica, AUTHOR: Ryan Paul]
In an effort to reduce rising government IT costs, the Obama administration could turn to open source software. Sun cofounder and former CEO Scott McNealy says that the Obama administration has asked him to prepare a paper that will address this topic and provide guidance on potential open source adoption strategies. There are many ways that state and federal governments can save money by adopting open source software; large-scale Linux deployments in public schools in the United States have been highly successful, for instance. Overseas, foreign governments are bringing down IT costs by migrating technical infrastructure in government facilities. In addition to helping cut costs, open technologies also increase interoperability and give IT departments more flexibility in how they use and manage software. Although Obama's interest in open source looks like a promising sign that the incoming government is serious about reforming federal IT procurement policies, the decision to call on Sun's eccentric cofounder is an incomprehensible twist. McNealy's long history of bizarre and contradictory positions on open source software make him a less than ideal candidate for helping to shape national policy on the subject. Asking Scott McNealy to write a paper about open source software is a bit like asking Dick Cheney to write a paper about government transparency.
http://benton.org/node/21079
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MEDIA OWNERSHIP

ABC COMBINES TV NETWORK, PRODUCTION UNITS
[SOURCE: Los Angeles Times, AUTHOR: Meg James, Dawn Chmielewski]
ABC on Thursday became the second major broadcaster to combine its television network and production studio into a single unit. ABC said its reorganization would not immediately result in job cuts among the people who develop shows, but Disney is expected to begin layoffs at ABC as soon as next week. ABC executives declined to discuss the potential reductions. Thursday's move was an admission that Disney's TV studio will have a more limited mission -- producing programs for ABC. Walt Disney Co.'s ABC, like all television companies, is scaling back amid a deepening recession. Networks are particularly vulnerable now because their audiences are shrinking and their advertising revenues are falling but production costs for dramas and comedies are continuing to climb. For Hollywood producers and writers, opportunities to land a show in a lucrative prime-time network slot are decreasing. Already those spots were being crowded out by cheaper game shows and reality fare.
http://benton.org/node/21112
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TRIBUNE PICKS RICKETTS FAMILY TO PURCHASE CUBS
[SOURCE: Chicago Tribune, AUTHOR: Ameet Sachdev, Michael Oneal]
The Chicago Cubs are set to change hands, with the billionaire Ricketts family emerging as the favored bidder to buy the team from Tribune Co for a landmark price of $900 million. The family, which has Chicago connections but made its fortune building a discount stock brokerage in Omaha, confirmed Thursday night that it has been selected by Tribune Co. to begin exclusive negotiations to buy the team, Wrigley Field and a 25 percent stake in Comcast SportsNet, a regional cable network. Sources put the value of the bid at about $900 million. Tribune Co.'s selection of the Ricketts' bid culminates a nearly two-year auction process that was complicated by the global financial crisis and, more recently, the media company's bankruptcy filing. The family's pursuit of the Cubs was led by Tom Ricketts, 43, the second-oldest son of J. Joe Ricketts, who founded what became Internet trading powerhouse TD Ameritrade Holding Corp. Joe Ricketts has an estimated net worth of $1.2 billion, according to Forbes magazine.
http://benton.org/node/21111
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UNIVISION, TELEVISA SETTLE DISPUTE
[SOURCE: Multichannel News, AUTHOR: Mike Farrell]
Spanish-language broadcasting powerhouses Grupo Televisa and Univision Communications Thursday said that they have settled their years-long programming dispute, agreeing to a new deal that increases payments to Televisa. According to the parties, the new agreement, terms of which were not disclosed, will run through 2017 and will include a simplified royalty payment that will result in increased payments to Televisa in exchange for incremental rights for Univision. The two companies said that litigation between the parties under way in Los Angeles federal court has been settled and will be dismissed.
http://benton.org/node/21077
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NEWSPAPERS MAY SEEK PHILANTHROPY TO SUPPORT NEWS-GATHERING
[SOURCE: Online Journalism Review, AUTHOR: David Westphal]
[Commentary] Could newspapers and local broadcasters begin seeking philanthropic support from the civic foundations and private donors that are starting to bankroll news non-profits? It appears entirely likely. With for-profit media watching their news-gathering resources dwindle, some editors say they're open to the idea of seeking help from donors. Charlotte Hall, president of the American Society of Newspaper Editors, said the idea raises multiple questions about how newspapers could solicit philanthropic support and still retain credibility. But bottom line? "I believe that a model could emerge for foundations to fund some local reporting at newspapers -- investigative reporting or an important local beat, for example," she said in an e-mail. "A new kind of firewall would be needed to assure independent reporting and unencumbered editing." The idea that for-profit media might seek subsidies from community foundations came into sharp focus last week, when the Knight Foundation awarded $5 million to 21 civic foundations that pitched plans for expanding news and information in their communities. Some of the ideas sounded much aligned with the mission statements of local newspapers and TV stations.
http://benton.org/node/21090
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VERIZON AND FREE PRESS AGREE THAT REMOTE BROADBAND REQUIRES MONOPOLY
[SOURCE: BroadbandCensus.com, AUTHOR: Drew Clark]
Verizon Communications and Free Press agreed that bringing high-speed Internet technology to unserved areas of western Massachusetts may result in a monopoly, or a single local telecommunications provider. [more at the URL below]
http://benton.org/node/21093
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WORM INFECTS MILLIONS OF COMPUTERS WORLDWIDE
[SOURCE: New York Times, AUTHOR: John Markoff]
A new digital plague has hit the Internet, infecting millions of personal and business computers in what seems to be the first step of a multistage attack.
[more at the URL below]
http://benton.org/node/21110
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YOUNGER AMERICANS MORE LIKELY TO USE TV THAN DVR, STUDY SAYS
[SOURCE: TVWeek, AUTHOR: Daisy Whitney]
70% of online Americans in the 18- to 34-year-old demographic have watched TV online at some point, compared to 36% who have viewed a show on a DVR or a TiVo. [more at the URL below]
http://benton.org/node/21096
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RECESSION HITS MOBILE-PHONE MARKET
[SOURCE: C-Net|News.com, AUTHOR: Marguerite Reardon]
The global recession is hitting the handset market hard, as the biggest supplier in the market, Nokia, is seeing its sales plunge. The Finnish handset maker said Thursday that fourth-quarter sales dropped 19 percent to $16.5 billion compared with the same period a year earlier. And its profit fell about 69 percent.
http://benton.org/node/21095
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LESSONS LEARNED FROM INAUGURATION NET-TRAFFIC SPIKE
[SOURCE: TelephonyOnline, AUTHOR: Carol Wilson]
The massive spike of Internet traffic during President Obama's inaugural ceremony is both a lesson and a wake-up call to Internet service providers.
[more at the URL below]
http://benton.org/node/21092
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IT'S A TECH WRECK
[SOURCE: CNNMoney.com, AUTHOR: Paul R. La Monica]
[Commentary] So much for the tech sector keeping the economy afloat. Despite strong earnings reports from IBM and Apple in the past two days, the news Thursday morning that Microsoft was cutting up to 5,000 employees -- including 1,400 that will be losing their job today -- is a sobering reminder that few companies, even in technology, are immune from this recession. Tech stocks, not surprisingly, took it on the chin Thursday. Microsoft plunged 8.5%, helping to drag down the Nasdaq by more than 3%.
http://benton.org/node/21091
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ENCYCLOPEDIA BRITANNICA TO ALLOW USER EDITS
[SOURCE: C-Net|News.com, AUTHOR: Josh Lowensohn]
Encyclopedia Britannica President Jorge Cauz said that the encyclopedia's free, online version, Britannica.com, will soon be allowing user edits and additions to its pages. Registered users will be able to make corrections, or add entirely new sections to encyclopedia pages--much like Wikipedia. The big difference, however, is that Britannica.com's editing and approval system will be managed by its own editors and contracted staff instead of power users.
http://benton.org/node/21089
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REPORT DETAILS UPCOMING ED-TECH TRENDS
[SOURCE: eSchool News, AUTHOR: Dennis Carter]
The sixth annual Horizon Report, created and published by the New Media Consortium and the EDUCAUSE Learning Initiative, profiles six technologies that will have a prominent role on college campuses in the next one to five years including mobile devices with abundant applications, cloud computing that bolsters data accessibility, and web tools that could make campus-based research faster and more thorough.
http://benton.org/node/21076
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