May 22, 2009 (New OECD Numbers: US ranks 15th in broadband)

BENTON'S COMMUNICATIONS-RELATED HEADLINES for FRIDAY, MAY 22, 2009

... and we're outta here. Have a great weekend; we'll see you Tuesday, May 26. Go Cubs!

BROADBAND/INTERNET
New OECD Numbers: Broadband Around the World
TIA: US broadband equipment market to shrink 36% over next 3 years

THE STIMULUS
   Fiber-Fed Libraries Can Serve as Agent of Digital Recovery
   The Broadband Stimulus: Let's Give Them Something to Talk About
   DOE gets earful from smart grid companies over stimulus

BROADCASTING/CABLE
   Early Soft-Test Returns: FCC Gets 27,000-Plus Calls
   More Americans with Digital TVs
   NCTA: Cable Act Regulations Are Now Relics
   ACA: Retransmission Consent Puts Us At Competitive Disadvantage

GOVERNMENT & COMMUNICATIONS
White House Announces Open Government Website, Initiative [Video]
Democratizing Data

JOURNALISM
   Court Rejects Arizona AG Suit to Keep 'Tucson Citizen' Alive
   Nation's oldest journalism school requiring iPhone, iPod Touch
   Newspapers, Local Media Missing E-mail Revenue Stream
   Once Again, Interrogation and Torture Drive the Online Debate

QUICKLY -- Intel and Competition; California considers open digital textbooks; Sprint resolves VoIP dispute; Federal judge weighs DVD copying case; Manipulating the Online Marketplace for Profit or Fun

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BROADBAND/INTERNET

BROADBAND AROUND THE WORLD
[SOURCE: New York Times, AUTHOR: Catherine Rampell]
The Organization for Economic Cooperation and Development on Wednesday released its latest data on broadband access. For broadband penetration, the United States is in the middle of the pack, slightly above average for OECD member countries. As for affordability, the United States has monthly broadband subscription fees that are slightly more expensive than the average for the OECD. The US is the most wired country in the world, according to a new study of industrialized counties that are members of the Organization for Economic Cooperation and Development. With 80,071,074 people connected to DSL, cable, or fiber (as of December 2008), America has nearly as many high-speed surfers as the next four countries combined (Japan, Germany, the United Kingdom and France). But tech patriotism may fade a bit when you consider the plight of average Americans. On a per-capita basis, the US ranks a dismal 15th -- behind Canada and most of northern Europe -- with just 27-percent of its population hooked up to fast pipes. Surprisingly, that still puts the US ahead of Japan, which has a 24-percent connection rate, as well as other wealthy counties, including Australia, Austria, Spain and Italy. The number of broadband subscribers in the OECD reached 267 million in December 2008, or the equivalent of 22.6 subscribers per 100 inhabitants. The number of broadband subscriptions grew 13% during 2008. The economic crisis has not significantly slowed broadband adoption. In fact, broadband growth during the last six months of the year was slightly stronger at 6.23% than in the first six months at 6.16%. The strongest per-capita subscriber growth over the year was in the Slovak Republic, Greece, New Zealand and Norway, Germany, France and the United States. Each country added more than 3 subscribers per 100 inhabitants during the past year. On average, the OECD area increased 2.5 subscribers per 100 inhabitants over the year. Denmark, the Netherlands, Norway, Switzerland, Iceland, Sweden, Korea and Finland maintain their lead the OECD with broadband penetration well above the OECD average, each surpassing the 30 subscribers per 100 inhabitants threshold. There was no change in rankings in the past 6 months among these leading countries.
http://benton.org/node/25492
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TIA: US BROADBAND EQUIPMENT MARKET TO SHRINK 36% OVER NEXT 3 YEARS
[SOURCE: TelephonyOnline, AUTHOR: Ed Gubbins]
Despite the expectation of broadband stimulus funds from the federal government in the coming months, US spending on access equipment should fall 27% this year and keep declining for the next two years before springing back to growth, according to the Telecommunications Industry Association. TIA predicts, for the first time ever, a global telecom industry decline this year (a 3.1% drop followed by 1.2% growth next year) -- projected access equipment spending declines of 9.8% in 2010 and 3.2% in 2011, followed by 18.2% growth in 2012. All told, the domestic broadband equipment market will shrink by more than $3.2 billion (or 36%) over the next three years.
http://benton.org/node/25489
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THE STIMULUS

FIBER-FED LIBRARIES CAN SERVE AS AGENT OF DIGITAL RECOVERY
[SOURCE: BroadbandCensus.com, AUTHOR: Douglas Streeks]
Extending fiber-optic Internet service to public libraries would help increase the demand for super-high-speed Internet at home, broadband experts said Thursday. Speaking at a forum at the Information Technology and Innovation Foundation, Don Means, the co-founder and principal of Digital Village Associates, outlined his proposal to extend high-speed connectivity to all 16,500 libraries in the country. Bringing fiber to the libraries, besides being the quickest, cheapest way to provide next generation broadband to next generation libraries, is also a good idea because it gives people experience with fiber-speed Internet, Means said. Further, by building fiber links, communities can help increase demand for fiber by demonstrating its benefits, and help provide incentives to become an "anchor tenant" for other community institutions that would benefit from fiber links. Means, a consultant from Sausalito, Calif., first began offered fiber to the library in 2000. Rob Atkinson, president of ITIF, said that the debate over implementing the broadband stimulus has been too narrowly focused on unserved and underserved areas. Serving libraries with high-speed connectivity can provide a benefit even to otherwise "served" areas of the country.
http://benton.org/node/25491
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THE BROADBAND STIMULUS: LET'S GIVE THEM SOMETHING TO TALK ABOUT
[SOURCE: App-Rising.com, AUTHOR: Geoff Daily]
[Commentary] Before the stimulus there were tons of communities that weren't really talking or thinking about their broadband needs and fewer still that were in the process of developing plans to address those needs. But now every community is at least starting to have those conversations. Before the stimulus it was hard to get the different stakeholders in a community around the same table to talk broadband as they either didn't care enough about it, didn't understand it, or saw nothing but a huge cost. Now the stimulus is sparking a coming together across the nation where everyone's talking about what they can do to get themselves wired. Before the stimulus there were many communities for which broadband was a pipe dream. They just didn't have the money to consider doing anything and their market wasn't attractive enough to attract private investment. Now there's a significant chunk of money to help get them wired. What's most exciting is that the kinds of conversations and people coming together the stimulus is inspiring is precisely what needs to be happening to get all communities wired regardless of the stimulus. So even if a community doesn't win out and get BTOP or RUS money -- and we have to be realistic that most won't get money as there's not enough to go around -- they'll still have made progress towards having an actionable plan for getting broadband. And with this plan they can be ready to funnel the additional federal support that I think we'll see coming, assuming this broadband stimulus is a success, or as the basis for finding additional ways to fund/incentivize deployment.
http://benton.org/node/25490
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DOE GETS EARFUL FROM SMART GRID COMPANIES OVER STIMULUS
[SOURCE: ars technica, AUTHOR: John Timmer]
Back in April, the Department of Energy issued a Notice of Intent of its plans to use stimulus money to fund smart grid projects. In order to get things moving quickly, the DOE had a short timeframe for public comments. Nevertheless, a variety of companies and groups provided their input before the deadline, and the DOE has already acted to implement some of their suggestions.
http://benton.org/node/25488
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BROADCASTING/CABLE

EARLY SOFT-TEST RETURNS: FCC GETS 27,000+ CALLS
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
The early returns on the national soft analog cut-off test are showing a wave, but not yet a flood, of calls to the Federal Communications Commission's digital television transition call center. The majority of the 950 or so stations pulling the plug on analog June 12 were participating in the soft test, which for most comprised of three simulated analog turn-offs--one in the morning, one at noon and a third in the evening. According to the source, 27,106 calls had been received through 3 pm, which would include all the morning tests and all but the Pacific time zone noon tests. That was compared to an average of 15,000 calls per day the center has been averaging since May 1. Of those 27,000-plus calls to 1-888-callfcc, 52% were about DTV-to-analog converter box coupons, about evenly split between callers saying they wanted to apply for them and ones who had applied wondering where theirs were.
http://benton.org/node/25487
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MORE AMERICANS WITH DIGITAL TVs
[SOURCE: Nielsen, AUTHOR: ]
As of February 2009, slightly more than one-third of American TV homes had at least one HDTV, up from 29.2 percent in November 2008, and 19.3 percent in February 2008. This switch to HDTV doesn't necessarily mean that households are ditching their old standard sets; they are simply re-locating them to other rooms such as bedrooms and the basement, and may use them for a dedicated purpose, such as video gaming. Overall, the average U.S. household now has 2.6 TV sets.
http://benton.org/node/25478
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NCTA: CABLE ACT REGULATIONS ARE NOW RELICS
[SOURCE: Multichannel News, AUTHOR: John Eggerton]
The National Cable and Telecommunications Association has told the Federal Communications Commission that a wealth of competition has spurred cable to provide more and better service. The bottom line of its message was that Congressional mandates in the 1992 Cable Act on rate regulation, program access, program carriage, leased access, PEG access, cable-ownership restrictions and more are now "relics of a bygone era" because competition has been "unquestionably" achieved. The previous 13 reports have been a "documentary history of the steady and irreversible growth of competition in the video marketplace," said NCTA, a pace that has only increased exponentially in the three years since the FCC put out its last report. The cable trade group pointed to the rise of DBS from no presence in 1993 to 29.2% in 2006, the growth of telco video, online video, home video, mobile video, and the potential of broadcast multicast channels.
http://benton.org/node/25486
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ACA: RETRANSMISSION CONSENT PUTS US AT COMPETITIVE DISADVANTAGE
[SOURCE: Multichannel News, AUTHOR: John Eggerton]
The American Cable Association focused on retransmission consent in its comments to the Federal Communications Commission on the state of video competition. In a filing at the Commission, ACA said that the "meteoric rise" in retrans costs for the small and medium-sized cable operators it represents put them at a competitive disadvantage by limiting their ability to deploy advanced services, including broadband in rural markets.
http://benton.org/node/25485
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GOVERNMENT & COMMUNICATIONS

WHITE HOUSE ANNOUNCES OPEN GOVERNMENT WEBSITE, INITIATIVE
[SOURCE: The White House]
The White House announced a groundbreaking new means of engaging the public in policymaking at www.whitehouse.gov/open and through a formal outreach published in the Federal Register. This innovative approach provides several ways to supplement the expertise of government employees with the knowledge and know-how of the American people. It also will result in a more open, accessible federal decision-making process. In announcing the open government efforts, Valerie Jarrett, Senior Advisor and Assistant to the President for Intergovernmental Affairs and Public Engagement, called the initiative "an unprecedented process for public engagement in policymaking." "This will help us achieve a new foundation for our government a foundation built on the values of transparency, accountability, and responsibility," Jarrett said. "This is a chance to brainstorm ideas, discuss the most promising ones, and collaborate with one another on next steps." The President believes that effective policy benefits from the best available information in society, and that the expertise from a diverse segment of Americans will strengthen government policies and approaches. Using today's tools, we can make this a reality that will benefit everyone.
http://benton.org/node/25484
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DEMOCRATIZING DATA
[SOURCE: Office of Management and Budget, AUTHOR: Director Peter Orszag]
The Federal CIO Council has launched Data.gov. Created as part of the President's commitment to open government and democratizing information, Data.gov will open up the workings of government by making economic, healthcare, environmental, and other government information available on a single website, allowing the public to access raw data and transform it in innovative ways. Such data are currently fragmented across multiple sites and formats—making them hard to use and even harder to access in the first place. Data.gov will change this, by creating a one-stop shop for free access to data generated across all federal agencies. The Data.gov catalog will allow the American people to find, use, and repackage data held and generated by the government, which we hope will result in citizen feedback and new ideas. Data.gov will also help government agencies—so that taxpayer dollars get spent more wisely and efficiently. Through live data feeds, agencies will have the ability to easily access data both internally and externally from other agencies, which will allow them to maintain higher levels of performance. In the months and years ahead, our goal is to continuously improve and update Data.gov with a wide variety of available datasets and easy-to-use tools based on public feedback and as we modernize legacy systems over time. Democratizing government data will help change how government operates—and give citizens the ability to participate in making government services more effective, accessible, and transparent.
http://benton.org/node/25483
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JOURNALISM

COURT REJECTS ARIZONA AG SUIT TO KEEP 'TUCSON CITIZEN' ALIVE
[SOURCE: Editor&Publisher, AUTHOR: Mark Fitzgerald]
US District Court Judge Raner Collins has ruled that the Tucson Citizen can remain dead as a print newspaper, saying the Arizona attorney general's office had not shown folding the Gannett Co. daily was a violation of antitrust law. Judge Collins says there is no evidence at the moment that there is a "ready and willing buyer to pay the fair and reasonable liquidation value of the Tucson Citizen assets." On Saturday, the Citizen published its last print edition, and Gannett announced it had terminated its joint operating agreement (JOA) with Lee Enterprises Inc.'s Arizona Daily Star, but that the two would remain partners, sharing profits and expenses in Tucson. Arizona's attorney general argued the move violated terms of the Newspaper Preservation Act and antitrust law generally, and that there was an eligible buyer in Stephen Hadland, a newspaper publisher in Culver City (CA). Hadland offered $400,000 for the assets of the Citizen, which did not include a stake in the JOA, while Gannett initially asked for $1 million, then lowered its price to $800,000. In court, a Gannett lawyer argued the offer was too low, and that it could not be compelled to sell at just any price.
http://benton.org/node/25479
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NATION'S OLDEST JOURNALISM SCHOOL REQUIRING IPHONE, IPOD TOUCH
[SOURCE: Associated Press, AUTHOR: Alan Scher Zagier]
The University of Missouri School of Journalism, the nation's oldest journalism school, is requiring incoming students to buy an iPhone, iPod Touch or similar device so they will be able to download classroom lectures or confirm facts on the Web while out reporting. The policy has spurred a debate about the limits and possibilities of technology as well as corporate influence in academia. Skeptics say the school is getting too cozy with Apple, though administrators point out that they earn no financial benefit from the new policy. The university gets a 10 percent discount on Apple computers it buys, but other vendors such as Dell and Hewlett-Packard offer the same deal.
http://benton.org/node/25496
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NEWSPAPERS, LOCAL MEDIA MISSING E-MAIL REVENUE STREAM
[SOURCE: ClickZ, AUTHOR: Kate Kaye]
Every day stories surface about local media firms laying off staff or closing up shop all together, but many may be missing out on a large, untapped revenue stream: e-mail advertising. Among the oldest form of online advertising, e-mail has yet to be fully adopted by local media firms or local advertisers. However, according to a new report from Borrell Associates, it's poised to grow significantly in the next few years. Just a fraction of e-mail marketing revenue is local, says Borrell. While the e-mail market reaps $12.1 billion, only $848 million of that is local. However, the local media research outfit predicts big growth for local e-mail spending. By 2013, Borrell expects local e-mail revenues will exceed $2 billion, increasing 150 percent.
http://benton.org/node/25494
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ONCE AGAIN, INTERROGATION AND TORTURE DRIVE ONLINE DEBATE
[SOURCE: Project for Excellence in Journalism, AUTHOR: ]
The polarizing issue of what defines torture dominated social media last week, marking the third time since the beginning of April that the subject has been among the top-two weekly stories in the blogosphere. From May 11-15, almost a quarter of the links (23%) on blogs and social media sites related to the debate over harsh interrogation techniques, according to the New Media Index from the Pew Research Center's Project for Excellence in Journalism.
http://benton.org/node/25482
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INTEL AND COMPETITION
[SOURCE: New York Times, AUTHOR: Editorial staff]
[Commentary] As American regulators slept through the past eight years, several authorities overseas decided that the Intel Corporation has been abusing its near monopoly position in the microchip market to squeeze out its smaller rival Advanced Micro Devices, constraining consumers' choice. It is now the United States' turn. The Federal Trade Commission, which opened a formal investigation into Intel's business a year ago, should decide without delay whether to pursue the company in court. The issue is not just whether Intel's tactics against A.M.D. amount to illicit behavior. The larger question is whether Washington is willing to pursue monopolies vigorously for predatory practices and foster an environment where competition and innovation can thrive.
http://benton.org/node/25497
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CALIFORNIA CONSIDERS OPEN DIGITAL TEXTBOOKS
[SOURCE: eSchool News, AUTHOR: Maya Prabhu]
In what could be a first-of-its-kind statewide initiative, California education leaders are working together to compile a list of free, open digital textbooks that meet state-approved standards and will be available to high school math and science classes this fall. At the request of Gov. Arnold Schwarzenegger, Secretary of Education Glen Thomas will work with State Superintendent of Public Instruction Jack O'Connell and State Board of Education President Ted Mitchell to develop the list of standards-aligned, open educational resources. The advisory report is scheduled to be released by Aug. 10.
http://benton.org/node/25481
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SPRINT RESOLVES PACKET DISPUTE
[SOURCE: Kansas City Star, AUTHOR: Dan Margolies]
Sprint sued Paetec in January 2008 over its use of technology for voice over packet, the process by which voice files are organized into discrete chunks for transmission and switching through a data network. Apparently, now the companies have settled the dispute which Paetec says will not have a material effect on its financial statements. In 2007, Vonage Holdings, an Internet telephone company, agreed to pay Sprint about $80 million to settle a similar patent dispute.
http://benton.org/node/25480
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FEDERAL JUDGE WEIGHS DVD COPYING CASE
[SOURCE: Reuters, AUTHOR: Clare Baldwin]
US District Judge Marilyn Hall Patel weighed arguments in a contentious DVD copyright case between Hollywood movie companies and RealNetworks Inc on Thursday, but did not indicate when she might rule. She is expected to issue a written decision on whether sales of RealNetworks' software that allows people to make backups of their DVDs on a home computer -- which she temporarily halted in October -- can resume. Her decision will come after hearing more evidence on whether the company violated the Digital Millennium Copyright Act of 1998 and the license it had with the DVD Copy Control Association and will indicate what she expects will happen if the issue goes to trial.
http://benton.org/node/25495
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MANIPULATING THE ONLINE MARKETPLACE FOR PROFIT OR FUN
[SOURCE: Washington Post, AUTHOR: Mike Musgrove]
As retailers, media companies and even government agencies attempt to get with the times and connect with an online audience, every once in a while they get a reminder: Anybody, or any group, armed with a Web browser can anonymously game the system and manipulate the marketplace at sites inviting user feedback -- for profit or just for fun.
http://benton.org/node/25493
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Happy 10th Birthday, Emma!

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