March 6, 2009 (The Ascendancy of Politics)

BENTON'S COMMUNICATIONS-RELATED HEADLINES for FRIDAY MARCH 6, 2009

Three broadband-related events next week: 1) Don't miss the Public Meeting on ARRA Broadband Initiatives; 2) BroadbandCensus.com hosts a discussion, Broadband Competition: Do We Have It, and How Do We Get More of It?; and 3) Illinois Broadband Deployment Council discusses broadband opportunities for Illinois, of course. See http://www.benton.org/calendar/2009-03-08--P1W

THE ECONOMY
   The Ascendancy of Politics
   NCTA Urges Government to Concentrate On Serving the Unserved
   Looking Past the Broadband Investment
   The Evolving Broadband Infrastructure: Expansion, Applications, and Regulation
   Study shows significant economic benefits from broadband
   Apparently Pennsylvania Doesn't Want Broadband Stimulus Dollars
   Layoffs mount, but media sector hardly worst off

DIGITAL TELEVISION
FCC Discusses Progress on DTV Transition

THE TRANSITION
President Obama Names Vivek Kundra Chief Information Officer
Gov Locke Makes Rounds in Senate

FROM THE GAO
GAO's Role in Helping to Ensure ARRA Accountability and Transparency
2010 Census Still Imperiled by Technical, Other Troubles, GAO Says

ELECTIONS & MEDIA
GOP Fights Back Over Criticism of Limbaugh
Documentary on Clinton Tests Campaign Finance Law

QUICKLY -- Lieberman Renews Push For CRS Reports; The Kindle Revolution; Students school lawmakers on tech's value; 4As Task Force Tackles Interactive Ads, Data Ownership; Five states OK CenturyTel-Embarq deal; People Had to Die Before a Move on Cellphones, Official Laments; Digital Newspaper Program Adds Content; The Computer Will See You Now; Clearwire Adjusts Forecast For Wider Broadband Reach; Media Risk Walking the Plank; Dialogue: the future of online obscenity and social networks; Darknets and the future of P2P investigators; It's Web 101 for this experienced intern

Recent Comment on: Why Obama Can't Ignore Education Tech by scoultrip

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THE ECONOMY

THE ASCENDANCY OF POLITICS
[SOURCE: The Big Money, AUTHOR: Ian Bremmer]
Something extraordinary is happening. New York used to be the financial capital of the world. It's no longer the financial capital of the United States. For the moment, that honor falls on Washington, where lawmakers and executive branch officials are hard at work on policy proposals that will shape the future of the US economy. In fact, the shift in the balance of economic decision-making power from capitals of finance to capitals of government is taking place in several countries at once. This power shift will slow the global recovery. It's difficult enough to build consensus among policymakers within one country on how best to promote growth. Imagine that argument during a meeting of the G20, the expanded group of major industrialized nations. Agreement on anything beyond diplomatic generalities will prove exceptionally tough to achieve—not simply because there are so many players at the table but because the most powerful of them won't agree on the most basic rules of the economic road. Coke and Pepsi are playing the same game. America, Russia, and China are not. This trend will produce its own set of winners and losers. This shift of economic power from financial to political capitals is also likely to produce shifts of wealth within countries. Expansions of the public sector spur new economic activity in the cities in which they occur. If it's happening in Washington, we may begin to see this trend in Beijing, Delhi, Brasilia, and elsewhere. It's not just decision-making power that is shifting from financial to political capitals: It's capital, as well.
http://benton.org/node/22939
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NCTA URGES GOVERNMENT TO CONCENTRATE ON SERVING THE UNSERVED
[SOURCE: Multichannel News, AUTHOR: John Eggerton]
The National Cable & Telecommunications Association is weighing in before the National Telecommunications & Information Administration, the Federal Communications Commission, and the Department of Agriculture's Rural Utilities Service decide how to dole out the $7.2 billion in broadband deployment grants and loans. Here's the message: the federal government should put a priority on extending broadband service to areas that can't get it at all, and to helping underserved populations buy and use the service that already exists there. Only after that, and if there is any money left over, should the government start putting money into essentially overbuilding underserved areas according to faster speeds or some other measure of "underserved." Before funding new competitors to existing cable operators, the NCTA told Congress that the broadband programs should address affordability, computer ownership and computer literacy.
http://benton.org/node/22937
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LOOKING PAST THE BROADBAND INVESTMENT
[SOURCE: Wall Street Journal, AUTHOR: Amy Schatz]
On Thursday, the Information Technology & Innovation Foundation released "The Need for Speed: The Importance of Next-Generation Broadband Networks." The report finds that America's current broadband speeds will not do in the future. The report makes the case for why it would be good economically and socially for America to have ubiquitous higher-speed broadband. It defines next-generation broadband speeds as anything that gives users download speeds of at least 20 megabits per second and upload speeds of 10 Mbps or more. The report shows "why next-generation broadband is so important," ITIF president Rob Atkinson said. The suggestion in ITIF's report that "communities should embrace private sector competition and not subsidize expensive third pipes when two or more providers are already providing broadband service" isn't likely to go over well with some in the public interest community. They complain that the cable-phone-company duopoly in some markets hasn't exactly resulted in particularly lower prices for consumers. "We're just supposed to sit around and wait and hope these benevolent companies lower their prices?" said Derek Turner, research director at Free Press, a public interest group. "Cable companies are just now starting to get around to upgrading to (next-generation high-speed service) because Verizon started offering FiOS. It's a very slow-moving market if companies are left to their own devices."
http://benton.org/node/22936
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THE EVOLVING BROADBAND INFRASTRUCTURE: EXPANSION, APPLICATIONS, AND REGULATIONS
[SOURCE: Congressional Research Service, AUTHOR: Patricia Moloney, Figliola, Angele Gilroy, Lennard Kruger]
Over the past decade, the telecommunications sector has undergone a vast transformation fueled by rapid technological growth and subsequent evolution of the marketplace. Much of the US policy debate over the evolving telecommunications infrastructure is framed within the context of a "national broadband policy." The way a national broadband policy is defined, and the particular elements that might constitute that policy, determine how and whether various stakeholders might support or oppose a national broadband initiative. The issue for policymakers is how to craft a comprehensive broadband strategy that not only addresses broadband availability and adoption problems, but also addresses the long term implications of next-generation networks on consumer use of the Internet and the implications for a regulatory framework that must keep pace with evolving telecommunications technology.
http://benton.org/node/22935
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STUDY SHOWS SIGNIFICANT ECONOMIC BENEFITS FROM BROADBAND
[SOURCE: Nokia Siemens Networks, AUTHOR: Press release]
A new econometric study commissioned by Nokia Siemens Networks and conducted by economic consulting firm LECG finds that in countries where ICT diffusion and usage were at medium or high levels, not only had broadband technology spread rapidly but the economic benefit from improved broadband penetration was significant. However, the study finds that in countries where ICT diffusion was relatively low, broadband has generally been adopted more slowly and has not had a measurable impact in improving economic productivity. In these countries, while it may simply be a matter of time before the productivity benefits of broadband are fully evident, governments should take a more active role in helping to speed up broadband adoption and in helping businesses and consumers make deeper and more economically effective use of broadband. One of the conclusions that the study reaches is that there is a significant role for "demand side" policies which create incentives for, or lower the costs of, adopting broadband and computing technologies.
http://benton.org/node/22934
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APPARENTLY PENNSYLVANIA DOESN'T WANT BROADBAND STIMULUS DOLLARS
[SOURCE: App-Rising.com, AUTHOR: Geoff Daily]
[Commentary] Legislation just introduced in Pennsylvania to outlaw basically all forms of municipal networks that compete with private providers. But the stimulus law specifically encourages the National Telecommunications and Information Administration to reward grants to everyone but private-only networks. While not shut out entirely, in order for a private-only network to get a grant they'll need a special waiver. What this all highlights is that our new Administration and this Congress want these grants to go to some flavor of municipal networks. So where does this leave Pennsylvania? On the one hand, in the legislative language is a mandate that every state get at least one grant, so even if this state ban on municipal networks were to pass Pennsylvania will likely get a grant of some kind. But at the same time, there will likely be money left over after every state gets their one grant, and at that point the money won't necessarily be divvied up evenly among all of them. Instead it should go to whatever projects are ready to move and that deliver the most public good and adhere most closely to the NTIA's requirements.
http://benton.org/node/22933
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LAYOFFS MOUNT, BUT MEDIA SECTOR HARDLY WORST OFF
[SOURCE: Reuters, AUTHOR: Paul Bond]
It may be little consolation, but layoffs in the media business don't come close to the carnage in some other sectors. In the first two months of this year, 7,453 jobs were lost at media companies. Even combining that figure with the 2,183 jobs that were cut from entertainment/leisure, a sector that includes movie theaters and theme parks, it's relatively mild. The worst-hit industry, for example, is retail, which slashed 72,727 jobs so far in January and February. In all of 2008, the media sector suffered 28,083 layoffs. In the first two months last year, 5,544 jobs were lost, 34 percent less than in the first two months this year.
http://benton.org/node/22931
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DIGITAL TELEVISION

FCC DISCUSSES PROGRESS ON DTV TRANSITION
[SOURCE: Benton Foundation, AUTHOR: Kevin Taglang]
A recap of the FCC's March 5 public meeting on the digital television transition. According to Nielsen, the number of households that are not ready for the upcoming DTV transition is down to 4.5 million, or about 3.9% of all TV households. "We must be mindful that this is just the beginning and that the large impacts lie ahead of us," said Eloise Gore, associate chief in the media bureau at the Federal Communications Commission. Andrew Martin (no relation), the Federal Communications Commission's Chief Information Officer, says that operators at the government-industry digital television transition call center will need to be given more training, and spend more time on the phone with viewers for the next wave of TV station analog cut-offs, which will begin April 16, if not sooner. Antenna positioning and converter box rescanning are the key issues for these operators. And while only 2% of the viewers to stations that pulled the plug Feb. 17 were Spanish speaking, 13% of the calls were from Spanish speakers. [There's much more at the URL below]
http://benton.org/node/22928
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THE TRANSITION

PRESIDENT OBAMA NAMES VIVEK KUNDRA CHIEF INFORMATION OFFICER
[SOURCE: The White House]
President Barack Obama named Vivek Kundra the Federal Chief Information Officer (CIO) at the White House. The Federal Chief Information Officer directs the policy and strategic planning of federal information technology investments and is responsible for oversight of federal technology spending. The Federal CIO establishes and oversees enterprise architecture to ensure system interoperability and information sharing and ensure information security and privacy across the federal government. The CIO will also work closely with the Chief Technology Officer to advance the President's technology agenda. Vivek Kundra formerly served in Mayor Fenty's cabinet as the Chief Technology Officer (CTO) for the District of Columbia, responsible for technology operations and strategy for 86 agencies. He has been recognized among the top 25 CTO's in the country and as the 2008 IT Executive of the Year for his pioneering work to drive transparency, engage citizens and lower the cost of government operations. Kundra is also recognized for his leadership in public safety communications, cyber security and IT portfolio management. Before Kundra came to the District, Governor Timothy M. Kaine appointed him Assistant Secretary of Commerce and Technology for the Commonwealth of Virginia, the first dual cabinet role in the state's history.
http://benton.org/node/22930
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GOV LOCKE MAKES ROUNDS IN SENATE
[SOURCE: Reuters, AUTHOR: Jeremy Pelofsky]
Former Gov and current Secretary of Commerce designee Gary Locke (D-WA) made the rounds in the Senate on Wednesday hoping to win support to be confirmed for the job. Locke met with Senate Commerce Committee Chairman Jay Rockefeller who was effusive about the nomination, but acknowledged that the Senate review process was not yet complete. "It's not over yet and that's such a frustrating process," Sen Rockefeller said. "It's moving well, I really liked him. We're lucky to have him." After one vote, Locke disappeared into an elevator with Democratic Senator Max Baucus, chairman of the powerful Senate Finance Committee. He also exchanged a few words with two other Senate Democrats, new Alaska Senator Mark Begich as well as Senator Ron Wyden of Oregon.
http://benton.org/node/22929
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FROM THE GAO

GAO'S ROLE IN HELPING TO ENSURE ARRA ACCOUNTABILITY AND TRANSPARENCY
[SOURCE: Government Accountability Office, AUTHOR: Acting Comptroller General Gene Dodaro]
This testimony discusses GAO's plans to carry out its oversight role related to the American Recovery and Reinvestment Act of 2009 (Recovery Act). The Recovery Act funds are provided for purposes including: preserving and creating jobs and promoting economic recovery; assisting those most impacted by the recession; investing in transportation, environmental protection, and other infrastructure to provide long-term economic benefits; and stabilizing state and local government budgets. The Recovery Act assigns GAO a range of responsibilities to help promote accountability and transparency. Some are recurring requirements such as providing bimonthly reviews of the use of funds by selected states and localities. Others include targeted studies in several areas such as small business lending, education, and trade adjustment assistance. This statement discusses 1) GAO's plans to carry out its responsibilities under the Recovery Act, 2) how GAO's responsibilities relate to other oversight authorities, such as the Inspectors General (IG) and the Recovery Accountability and Transparency Board (Board), and 3) the challenges posed in ensuring accountability over the use of funds and associated lessons learned and best practices that can be helpful in addressing those challenges.
http://benton.org/node/22938
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2010 CENSUS STILL IMPERILED BY TECHNICAL, OTHER TROUBLES, GAO SAYS
[SOURCE: Washington Post, AUTHOR: Steve Vogel, Ed O'Keefe]
The accuracy of the 2010 Census remains threatened by computer problems and untested methods the Census Bureau plans to use for conducting the count, according to testimony yesterday from the Government Accountability Office. The GAO assessment, presented at House and Senate hearings on the progress of census preparations, warns that with census day set for April 1, 2010, the bureau is behind schedule. "With little time remaining, uncertainties surround the bureau's readiness for 2010," according to Robert Goldenkoff, director of strategic issues for the GAO. The census, mandated by the Constitution to be conducted every 10 years, is used to apportion seats in Congress, redraw congressional districts and allocate billions of dollars in federal assistance to state and local governments, making its accuracy critical. The cost of the 2010 Census could reach $15 billion by the time of its completion in 2012, according to testimony yesterday. That would make it the most expensive head count in American history, even adjusted for inflation.
http://benton.org/node/22945
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ELECTIONS & MEDIA

GOP FIGHTS BACK OVER CRITICISM OF LIMBAUGH
[SOURCE: Washington Post, AUTHOR: Howard Kurtz]
By one measure, Rush Limbaugh is a clear winner this week: His ratings have nearly doubled since his feud with the White House burst into the media limelight. But the Obama administration's strategy of trying to elevate the conservative radio commentator to leader of the opposition has prompted a vigorous counterattack, with a key Republican senator saying the move is an "outrage" that "reeks of hypocrisy coming from a president who campaigned against these very cynical political tactics last fall." That letter from Sen. John Cornyn (TX), chairman of the National Republican Senatorial Committee, and a Washington Post opinion piece by House Minority Leader John A. Boehner (R-OH), also accusing the White House of cynicism, underscore the GOP's attempt to make President Obama pay a political price for the rhetorical assault on Limbaugh.
http://benton.org/node/22946
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DOCUMENTARY ON CLINTON TESTS CAMPAIGN FINANCE LAW
[SOURCE: New York Times, AUTHOR: Adam Liptak]
Next month, the Supreme Court will consider if "Hillary: The Movie" the sort of "electioneering communication" that the McCain-Feingold campaign finance law of 2002 says may not be broadcast in certain time windows before elections? And if it is, can the law itself then be squared with the First Amendment? Theodore B. Olson, who was the United States solicitor general in the administration of George W. Bush after playing a supporting role in promoting the scandals that swirled around the Clinton White House, is defending the film in the Supreme Court. In a brief, Olson called it "a critical biographical assessment" that provides "historical information about the candidate and, perhaps, some measure of entertainment as well." The Obama Justice Department sees the documentary differently. "Every element of the film, including the narration, the visual images and audio track, and the selection of clips," its brief said, "advances the clear message that Senator Clinton lacked both the integrity and qualifications to be president of the United States."
http://benton.org/node/22950
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LIEBERMAN RENEWS PUSH FOR CRS REPORTS
[SOURCE: CongressDaily, AUTHOR: Andrew Noyes]
Senate Homeland Security and Governmental Affairs Chairman Joseph Lieberman (I-CT) on Wednesday resumed a perennial attempt by some lawmakers and open government advocates to make reports produced by the Congressional Research Service more easily accessible to the public. In a letter to Senate Rules Committee Chairman Charles Schumer (D-NY), he called for an automatically updated clearinghouse for the documents so "those with power and those without have equal access to this important resource."
http://benton.org/node/22927
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THE KINDLE REVOLUTION
[SOURCE: The Big Money, AUTHOR: Marion Maneker]
Amazon announced the second iteration of its Kindle electronic reading device last month. The next day, HarperCollins announced that it would close its Collins division to substantially reduce head count and limit the number of books it acquires to publish. It was almost as if Harper was acting out a ritual dismemberment upon hearing the news. There was, in fact, no cause and effect between the two events—but there ought to have been. The Kindle may be little more than a novelty device today. With each passing day, though, it begins to have the potential to change the business model for writers of all types and stripes. The book business is a distribution business, pure and simple. It's about getting the words and ideas of a writer into the hands of a reader.
http://benton.org/node/22926
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STUDENTS SCHOOL LAWMAKERS ON TECH'S VALUE
[SOURCE: eSchool News, AUTHOR: Maya Prabhu]
Students from four Georgia school districts were on Capitol Hill March 4 showing federal lawmakers how technology is being used to enhance teaching and learning in their classrooms--and why federal funding for school technology is important. Many of the students said the technology their schools have received through Title II, Part D (Enhancing Education Through Technology, or EETT) grants has made learning fun.
http://benton.org/node/22925
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4As TASK FORCE TACKLES INTERACTIVE ADS, DATA OWNERSHIP
[SOURCE: MediaPost, AUTHOR: Joe Mandese]
A task force under the aegis of the American Association of Advertising Agencies and the Interactive Advertising Bureau that examined how to alter business practices for interactive advertising failed to come to an agreement on who owns performance data generated from online campaigns. It was not a surprise--given GroupM's recent push to ensure campaign data is the exclusive property of the advertiser and the agency. But it highlights how difficult it may be to reach consensus on how the industry should overhaul the way it does business. In addition to the data-ownership issue, the interactive group failed to agree on recommendations for how the industry should handle aspects of makegoods, and how to deal with creative that is submitted late. The task force is searching for ways for the industry to cut costs; late creative is a drain on resources.
http://benton.org/node/22924
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FIVE STATES OK CENTURYTEL-EMBARQ DEAL
[SOURCE: FierceTelecom, AUTHOR: Dan O'Shea]
Regulatory commissions in Georgia, Mississippi, Nebraska, Minnesota and Ohio have all approved the merger of Louisiana-based CenturyTel and Kansas-based Embarq. The deal is due for review by Louisiana regulators within days, and several other states' regulators should follow. Fifteen of the 33 states in which the companies operate require that it be approved by their utility commissions. The deal also must be approved by the Federal Communications Commission.
http://benton.org/node/22923
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PEOPLE HAD TO DIE BEFORE MOVE ON CELLPHONES, OFFICIAL LAMENTS
[SOURCE: New York Times, AUTHOR: Katharine Seelye]
The chairwoman of a federal inquiry into a deadly train crash in California said Wednesday that it was unacceptable that 25 people had to die before federal regulators clamped down further on the use of cellphones by train operators. "To lose 25 lives in order to essentially take action on something that we've known has been a problem for years, that we see as a growing problem — this technology in the scheme of things is relatively new, but it's ubiquitous, it's everywhere," Kathryn O'Leary Higgins, chairwoman of a panel of the National Transportation Safety Board, said in the second of two days of testimony. As Ms. Higgins spoke, a cellphone rang in the hearing room; the hearing, in Washington, was shown live in a Web cast. The panel is examining the causes of a crash in the Chatsworth section of Los Angeles on Sept. 12, when a Metrolink commuter train sped past a red signal light and collided head-on with a Union Pacific freight train, killing 25 people and injuring 135. The panel's report is due out later this year.
http://benton.org/node/22922
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DIGITAL NEWSPAPER PROGRAM ADDS CONTENT
[SOURCE: CongressDaily, AUTHOR: Winter Casey]
The National Digital Newspaper Program, a partnership between the National Endowment for the Humanities and the Library of Congress, seeks to provide enhanced access to U.S. newspapers by creating, over the next 20 years, a national digital resource of historically significant newspapers from all states and U.S. territories published between 1836 and 1922. This publicly available free searchable database will be permanently maintained at the Library of Congress.
http://benton.org/node/22921
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THE COMPUTER WILL SEE YOU NOW
[SOURCE: New York Times, AUTHOR: Anne Armstrong-Coben]
[Commentary] We have all heard about the wonderful ways in which electronic medical records are supposed to transform our broken health care system — by eradicating illegible handwriting and enabling doctors to share patients' records with one another more easily. The recently passed federal stimulus package provides doctors and hospitals with $17 billion worth of incentive payments to switch to electronic records. The benefits may be real, but we should not sacrifice too much for them. Doctors in every specialty struggle daily to figure out a way to keep the computer from interfering with what should be going on in the exam room — making that crucial connection between doctor and patient. In short, the computer depersonalizes medicine. It ignores nuances that we do not measure but clearly influence care.
http://benton.org/node/22949
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CLEARWIRE ADJUSTS FORECAST FOR WIDER BROADBAND REACH
[SOURCE: Wall Street Journal, AUTHOR: Amol Sharma]
Wireless broadband provider Clearwire now says expects to provide service in 80 US markets. Clearwire launched mobile WiMax service in Portland (OR) in January and plans to spend $1.5 billion to $1.9 billion this year to launch in such cities as Philadelphia, Chicago and Dallas. Unlike mobile voice, where coverage is king, the key driver for mobile broadband is network capacity," Chief Executive Ben Wolff said. The company's large stash of radio spectrum allows Clearwire to provide the required capacity, he said.
http://benton.org/node/22948
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MEDIA RISK WALKING THE PLANK
[SOURCE: Wall Street Journal, AUTHOR: Martin Peers]
If the past six months have been a nightmare for most investors, it has been a massive wake-up call to big media companies. The recession is forcing them to rethink their approach to the Web. Disney is considering an online subscription service for movies and possibly TV shows. Others in Hollywood are thinking along similar lines, conscious of the growing popularity of Netflix and its instant-watch online streaming service for movies and TV shows. If that sounds like back to the future, that is because it is. In 2002, several of the major studios started a movie-download service called Movielink. But it never took off and, in 2007, the group sold the service to Blockbuster. Now, though, not only has technology become easier to use -- it is no longer difficult to watch on a TV set a movie that is streamed or downloaded from the Web -- but financial pressures are growing. DVD sales are sliding, at least partly because of the online availability of movies. That is forcing a fundamental debate in the entertainment industry: whether the strategy of putting content for free online, as pursued by big broadcast-TV networks, makes sense.
http://benton.org/node/22947
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DIALOGUE: THE FUTURE OF ONLINE OBSCENITY AND SOCIAL NETWORKS
[SOURCE: ars technica, AUTHOR: Adam Thierer, John Palfrey]
Is it time to revisit and tweak a critical portion of the Communications Decency Act (CDA)? Adam Thierer, Director of the Progress and Freedom Foundation's Center for Digital Media Freedom, and John Palfrey, Harvard law professor and Vice Dean, debate whether ISPs and social networking sites should be more liable for the things their users post.
http://benton.org/node/22944
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DARKNETS AND THE FUTURE OF P2P INVESTIGATORS
[SOURCE: ars technica, AUTHOR: Nate Anderson]
LimeWire's new software illustrates a growing trend: "darknets" are becoming simple to setup and use. As millions of people now find that they can easily create their own private share networks, what's in store for content industry investigators who rely on public P2P networks to find suspected file-sharers?
http://benton.org/node/22943
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IT'S WEB 101 FOR THIS EXPERIENCED INTERN
[SOURCE: Los Angeles Times, AUTHOR: Geraldine Baum]
Lois Draegin, 55, lost a six-figure editing job. She now works unpaid for a start-up website, trading her knowledge for new online skills.
http://benton.org/node/22942
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... and we are outta here. Have a great, great weekend. And don't forget to push the clock on Saturday night!

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