July 29, 2009 (The Recession Is Over)
BENTON'S COMMUNICATIONS-RELATED HEADLINES for WEDNESDAY JULY 29, 2009
INTERNET/BROADBAND
The Recession Is Over
The Promise of Universal Broadband
How NTIA Dismantled the Public Interest Provisions of the Broadband Stimulus Package
A 'Cautionary Story' Sadly Comes True for Broadband Mapping
Spectrum Policy in the Age of Broadband
The Web Is Flat: Why Time Spent Online Is Leveling Off
US Municipal Fiber Networks a "Model for failure"?
New fiber-optic network brings digital era to Afghanistan
PRIVACY
Google's Big Plan for Books
Snooping on Web Traffic Gains Favor Amid Fears
CDT Releases Report on Privacy Concerns Surrounding Government Cybersecurity System
Stimulus Package Steps Up Health Data Privacy, Security
TELECOM
FCC Inspector General Reverses Universal Service Fund Low Income Program Decision
Apple blocks Google Voice app for iPhone
Outsourcing: Telecoms Give Their Networks the Boot
NEW RESEARCH
Fewer Minorities in Local News
Who's On Which Social Nets
The US Newspaper Industry in Transition
Weaknesses Threaten Electronic Records Archive Program
POLICYMAKERS
NY Librarian Tapped As Obama Archivist
White House Still Has a Vacancy for a Lesser Czar
DEALS
Cash in Hand, High-Tech Giants Snap Up Rivals
Yahoo to Lead Ad Sales in Microsoft Search Deal
Sprint Buys Virgin Mobile USA for $483 Million
Verizon Wireless, Qualcomm in mobile venture
Verizon changes tune on Wi-Fi
FairPoint restructuring debt, expanding broadband service
MORE ONLINE
Rockefeller Subpoenas Web Marketer
True democracy is not just about taking part
Bailout in the Mail
Ban cellphoning while driving?
With wireless devices, telecommuters cut the cord
Zell: Tribune Could Exit Bankruptcy This Year
Grilled Genachowski
Recent Comments on:
Writing an Effective Public Interest Rule for NTIA Broadband Grant Eligibility
Warrantless Surveillance: Lawful, Effective and Necessary
INTERNET/BROADBAND
THE RECESSION IS OVER
[SOURCE: TheBigMoney, AUTHOR: Daniel Gross]
[Commentary] We need a new type of recovery because the last several ones were based on bubbles. The Obama administration's strategy rests on what some might call industrial policy or excessive government intervention—or even creeping socialism. I call it "the smart economy." It means eschewing the blunt economic instruments we've always used and focusing resources and rhetoric on strategic sectors: renewable energy/green technology, infrastructure, broadband, and health care. It means making investments to run vital systems more intelligently and efficiently, thus creating a new infrastructure on which the private sector can work its magic. This philosophy, legislated in the $787 billion American Recovery and Reinvestment Act, holds that a mixture of targeted investments, tax credits, subsidies, reforms, and direct purchases can preserve or create jobs in the short term, improve America's economic competitiveness in the long term, and catalyze private-sector investment. The benefits from more investment in broadband and communications could extend far beyond elderly eBay sellers. As MIT researcher William Lehr says, "Broadband is a key ingredient to make the rest of this smorgasbord of projects work." For example, the stimulus package included $19 billion to computerize health information, which would allow doctors, patients, and insurers to share data easily. The move, intended to save billions of dollars, has already spurred private-sector investments. In July, the networking giant Cisco and the huge insurer UnitedHealth announced plans to build a technology network for health providers with the help of stimulus funds.
http://benton.org/node/26730
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THE PROMISE OF UNIVERSAL BROADBAND
[SOURCE: TelephonyOnline, AUTHOR: Kermit Ross]
[Commentary] critics should read the Notice of Funds Availability from the USDA's Rural Utilities Service (RUS) Broadband Initiatives Program (BIP) and the Broadband Technology Opportunities Program (BTOP) administered by The Department of Commerce's National Telecommunications and Information Administration (NTIA). First, the NOFA requires that an access network be designed for 100% coverage. Broadband connections at minimum speeds, at least, must be available to every home and every business. Not just the ones closest to the CO. Not just the ones passed by FTTH. Not just the ones in nice neighborhoods. Every home and every business will have broadband access. From the get-go. Universal broadband! Second, the NOFA allocates funds for broadband "second mile" networks, i.e. broadband backhaul. The leased lines that connect rural areas to the Internet today are ruinously expensive - one of the reasons so many rural areas are "under-served". If the government is going to fund broadband access in the "first mile", it wants to be darn sure that those connections are not choked off in the "second mile"! Third, the NOFA requires that broadband networks be open and neutral. It requires that both first and second mile networks be available to multiple service providers at wholesale rates. Furthermore, it requires that services be handled in a "nondiscriminatory" manner, with no service provider's packets getting more favorable treatment others'.
http://benton.org/node/26729
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HOW NTIA DISMANTLED PUBLIC INTEREST PROVISIONS OF BTOP
[SOURCE: muninetworks.org, AUTHOR: Christopher Mitchell]
On July 2, 2009, the National Telecommunications & Information Administration (NTIA) released the rules for the broadband stimulus program (called the Broadband Technology Opportunities Program or BTOP). While a plain reading of the statute language suggests that NTIA should decide on an individual basis whether a private profit making entity is in the public interest, NTIA instead a priori declared all private companies in the public interest. It simply acted as though the House legislation had prevailed over the Senate. NTIA justified itself by declaring that the Congress intended to "invite a diverse group of applicants to participate." NTIA thereby accomplishes a sleight-of-hand tactic- declaring that it is complying with the original intent of some in Congress rather than complying with the text actually passed by Congress. If Congress had intended all entities to be eligible on an equal footing, it would have adopted the House eligibility language. Congress explicitly did not do this. Rather, it chose a higher bar for private companies. They had to be judged in the public interest. The NTIA ruling did not explain what it meant by "public interest". Nor did it indicate that it would declare ineligible those companies that have violated the public trust previously. Instead, it put global companies driven to maximize profits on a level footing with public and non-profit corporations chartered to maximize benefits to the community.
http://benton.org/node/26728
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A 'CAUTIONARY STORY' SADLY COMES TRUE FOR BROADBAND MAPPING
[SOURCE: Public Knowledge, AUTHOR: Art Brodsky]
[Commentary] A month ago, we wrote a "cautionary story" about how the state of Texas was setting up the telecom front group Connected Nation to be the broadband mapper of choice. The state did it by the book, albeit with a Request For Proposals (RFP) that fit Connected Nation like a glove. Guess what? The state of Texas has declared a winner. Guess who it is? If you didn't guess Connected Nation, you're not paying attention. What will the National Telecommunications and Information Administration (NTIA) do when all of those Connected Nation proposals come flooding in full of confidentiality claims that give substantially less data than the intent of the legislation? Will NTIA reject them all? Where will that leave the states which sent them in? NTIA has told state officials the information doesn't have to come from carriers, but there is some difference of opinion about what the NTIA's broadband mapping announcement says and what it means. NTIA Dir. Larry Strickling was quoted by Broadbandcensus.com as saying he hopes carriers will waive confidentiality, and that there are other ways of collecting information. Check us off as skeptical for the first.
http://benton.org/node/26727
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SPECTRUM POLICY IN THE AGE OF BROADBAND
[SOURCE: Congressional Research Service, AUTHOR: Linda Moore]
The convergence of wireless telecommunications technology and Internet protocols is fostering new generations of mobile technologies. This transformation has created new demands for advanced communications infrastructure and radio frequency spectrum capacity that can support high-speed, content-rich uses. Furthermore, a number of services, in addition to consumer and business communications, rely at least in part on wireless links to broadband backbones. Wireless technologies support public safety communications, sensors, medicine and public health, intelligent transportation systems, electrical utility smart grids, and many other vital communications. Existing policies for allocating and assigning spectrum rights may not be sufficient to meet the future needs of wireless broadband and national broadband policy. A challenge for Congress is to provide decisive policies in an environment where there are many choices but little consensus.
http://benton.org/node/26726
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THE WEB IS FLAT: WHY TIME SPENT ONLINE IS LEVELING OFF
[SOURCE: AdAge, AUTHOR: Abbey Klaassen]
Time spent with the Internet, as it turns out, doesn't balloon indefinitely. That might sound obvious, but this is the year web surfing leveled off at 12 hours a week after growing from less than six hours a week in 2004, according to Forrester's annual survey of more than 40,000 American consumers' self-reported media habits. The report, released Monday, also indicates relative stabilization in other media channels, most notably newspaper and magazine reading. While there are myriad reasons why people's time spent with Internet media stayed flat over the past year -- chief among them is faster broadband speeds and more experience with the web allows people to be more efficient consumers -- the trend has implications for media companies and marketers. Ad Age interviewed Forrester Analyst Jackie Rousseau-Anderson to understand more about why we're seeing the stagnation and its implications for media.
http://benton.org/node/26725
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US MUNICIPAL FIBER NETWORKS A "MODEL FOR FAILURE"?
[SOURCE: CommsDay.com, AUTHOR: Petroc Wilton]
In Australia critics have seized on the failure of a municipally owned wholesale fiber to the premise network in the US as a warning that the proposed Australian NBN model could be commercially unviable. The municipal fibre network in Provo, Utah - passing some 36,000 homes - was sold to a greenfields FTTP provider, heralding the end of its life as a wholesale-only proposition. New owners Broadweave Networks intended to scrap the wholesale model to make it economic. Tim Nulty, former GM of a retail municipal fibre network in Burlington, Vermont, dismissed the wholesale fibre model "a recipe for financial failure" - noting that wholesalers often ended up having to beg service providers to participate in order to meet the debts racked up by building the networks in the first place.
http://benton.org/node/26716
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PRIVACY
GOOGLE'S BIG PLAN FOR BOOKS
[SOURCE: New York Times, AUTHOR: Editorial staff]
[Commentary] While the Internet has transformed much of the information world, books have been a laggard. Google may change that. It has already scanned millions of out-of-print books, and it has reached an agreement with writers and publishers — which still requires judicial approval — to make them widely available. Google's book service raises monopoly and privacy concerns. It also holds great promise for increasing access to knowledge. As a result of a settlement reached with writers and publishers, Google would be the only company with the right to "orphaned" works, books whose rights owners have not been located. If that were to happen, Google could use monopoly power to price these books exorbitantly. The court reviewing the settlement and the Department of Justice should make sure adequate protections are built in. The proposed settlement also raises privacy concerns. Google could collect data on what books people read and create a dossier of their political views and other information. Google should generally do a better job of showing how it will respect privacy, and this venture is no exception.
http://benton.org/node/26740
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SNOOPING ON WEB TRAFFIC GAINS FAVOR AMID FEARS
[SOURCE: Wall Street Journal, AUTHOR: Christopher Rhoads]
An Internet-monitoring technology known as deep packet inspection is gaining favor as a tool to combat viruses and make networks run more efficiently, despite concerns that the technology allows improper snooping on private Web traffic by governments and other prying eyes. The technology created a political firestorm when the administration of former President George W. Bush used it to monitor international communications as part of counterterrorism efforts. Iran's apparent use of deep packet inspection, or DPI, during a crackdown on protesters last month gave the technology another black eye. But use of DPI, which examines Web traffic at a much more detailed level than previous technologies could, is still growing globally.
http://benton.org/node/26739
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CDT RELEASES REPORT ON PRIVACY CONCERNS SURROUNDING GOVERNMENT CYBERSECURITY SYSTEM
[SOURCE: Center for Democracy & Technology, AUTHOR: Gregory Nojeim]
The Center for Democracy & Technology released a report outlining a series of privacy and legal questions that surround the government computer monitoring system known as "Einstein." The report calls on the Administration to release information about the legal authority for Einstein, the role of the nation's top spy agency, the National Security Agency, in its development and operation, and the impact of Einstein on the privacy.
http://benton.org/node/26712
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STIMULUS PACKAGE STEPS UP HEALTH DATA PRIVACY, SECURITY
[SOURCE: iHealthBeat, AUTHOR: ]
Health care providers are gearing up to meet the privacy and security provisions of the American recovery and Reinvestment Act. Under the health IT provisions of the federal stimulus package, all entities that handle protected health information must comply with HIPAA privacy regulations. In addition, the stimulus law calls for health care providers to: Notify all affected patients within 60 days of a security breach; Report security breaches to the HHS secretary and prominent media outlets if the incident affects more than 500 individuals; Track all personal health information disclosures; and Upon patient request, provide an account of every disclosure for the previous three years. Experts say health care facilities could face serious penalties if they fail to comply with the new security provisions of the federal stimulus package.
http://benton.org/node/26714
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TELECOM
FCC INSPECTOR GENERAL REVERSES USF DECISION
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
The Federal Communications Commission Inspector General Tuesday reversed a decision that some $1.6 billion in Universal Service Fund payments to the Low Income Program in 2006-2008 were "100% erroneous." A December 2008 decision by the Inspector General under then-FCC Chairman Kevin Martin put the entire low-income fund "at risk" under Office of Management and Budget accounting standards, the IG's office had said at the time. On Tuesday, the IG withdrew that decision and said the program would be audited for potential waste, fraud and abuse. Acting Inspector General David Hunt pointed out that the previous IG determination had been based on the fact that source documentation could not be supplied to verify the amounts handed out and based on interpretation of OMB guidance. But since that December report, he points out, the Universal Service Administrative Company has responded to that Inspector General finding. Given that the Inspector General did not conduct an audit or "other structured examination," Hunt said his office had decided to withdraw that finding that the payment was totally off.
http://benton.org/node/26724
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APPLE BLOCKS GOOGLE VOICE APP FOR IPHONE
[SOURCE: C-Net|News.com, AUTHOR: Erica Ogg]
The long-awaited Google Voice application for the iPhone has been officially shot down by Apple. In addition, all third-party applications that use Google Voice have been pulled by Apple. The developer of one of those apps, GV Mobile, says he was told the decision came from Apple because his app "duplicates features that come with the iPhone." It's unclear why Apple is refusing the app to be sold in its store, though there are hints that it may have come at the behest of AT&T, the exclusive carrier for the iPhone in the U.S. Google Voice is a free application that lets users assign a single number to ring their home, work, and cell phones, and also get voice mail as text transcriptions. Google Voice has been described by some as an "end run" around wireless carriers because it allows for free texts, but users do still use minutes on their AT&T phone plan.
http://benton.org/node/26723
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OUTSOURCING: TELECOMS GIVE THEIR NETWORKS THE BOOT
[SOURCE: ComputerWorld, AUTHOR: Stephanie Overby]
Telecom operators worldwide are increasingly considering outsourcing the management of their networks to companies like Nokia, Alcatel-Lucent and Ericsson in order to lower costs, increase capabilities and/or focus on other strategic imperatives. In fact, network services contracts accounted for half of all the megadeals (contracts with values of $1 billion-plus) signed in the first half of this year. Network services outsourcing has taken off among wireless providers in Europe and Asia, where all providers operate using common GSM technology.
http://benton.org/node/26718
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NEW RESEARCH
FEWER MINORITIES IN LOCAL NEWS
[SOURCE: Broadcasting&Cable, AUTHOR: Michael Malone]
The Radio-Television News Directors Association and Hofstra university have released data on the latest survey of the local television newsroom workforce. Minorities comprised 21.8% of local TV news staff in 2009, down from 23.6% last year. Hispanics in local news fell from 10.3% to 8.8% in the past year, while African Americans decreased by a half percentage point. The percentage of minority TV news directors dropped slightly in 2009. Women represent 41.4% of the local news workforce, according to a new study from RTNDA/Hofstra, an all-time high. A full 29.1% of the nation's TV news directors are female, also a record level.
http://benton.org/node/26721
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WHO'S ON WHICH SOCIAL NETWORKS
[SOURCE: MediaPost, AUTHOR: Laurie Sullivan]
An Anderson Analytics study suggests that 1) Twitter has become more popular than LinkedIn, 2) more than half of the US consumers who use social networks belong to more than one, and 3) the people who belong to a social net are four times more vocal about products and services than people who don't belong. Twitter users are likely to be bloggers, too, and many trumpet social causes. The average user logs into their social network four times a day, five days a week, and spends about one hour per day on the network. Nearly 32% are business users, 26% fun seekers, 22% social media mavens, and 10% leisure followers.
http://benton.org/node/26719
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THE US NEWSPAPER INDUSTRY IN TRANSITION
[SOURCE: Congressional Research Service, AUTHOR: Suzanne Kirchhoff]
The US newspaper industry is suffering through what could be its worst financial crisis since the Great Depression. Congress has begun debating whether the financial problems in the newspaper industry pose a public policy issue that warrants federal action. Whether a congressional response to the current turmoil is justified may depend on the current causes of the crisis. If the causes are related to significant technological shifts (the Internet, smart phones and electronic readers) or societal changes that are disruptive to established business models and means of news dissemination, the policy options may be quite limited, especially if new models of reporting (and, equally important, advertising) are beginning to emerge. Governmental policy actions to bolster existing businesses could stall or retard such a shift. In this case, policymakers might stand back and allow the market to realign news gathering and delivery, as it has many times in the past. If, on the other hand, the current crisis is related to the struggle of some major newspapers to survive the current recession, possible policy options to ensure the continuing availability of in-depth local and national news coverage by newspapers might include providing tax breaks, relaxing antitrust policy, tightening copyright law, providing general support for the practice of journalism by increasing funding for the Corporation for Public Broadcasting (CPB) or similar public programs, or helping newspapers reorganize as nonprofit organizations.
http://benton.org/node/26715
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WEAKNESSES THREATEN ELECTRONIC RECORDS ARCHIVE PROGRAM
[SOURCE: NextGov, AUTHOR: Gautham Nagesh]
The National Archives and Records Administration must provide more detailed information on its progress creating a system to store the federal government's electronic records, and develop a better contingency plan in case the system fails, according to a new report from the Government Accountability Office. Auditors found NARA's 2009 spending strategy did not specify the outcomes or capabilities the agency expected to achieve with funding for the Electronic Records Archive, which will house the federal government's massive volumes of electronic records independent of their original hardware or software. "Cost, schedule and performance data in the expenditure plan do not provide a clear picture of ERA system progress," the report stated. NARA also has made very little progress on adding records from the Bush administration into a piece of ERA called the Executive Office of the President system. Less than 3 percent of electronic records from the Bush presidency had been entered into the EOP system at the time of the review, and NARA officials did not expect the rest to be added until October.
http://benton.org/node/26717
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POLICYMAKERS
NY LIBRARIAN TAPPED AS OBAMA ARCHIVIST
[SOURCE: CongressDaily, AUTHOR: Andrew Noyes]
President Obama's pick to head the National Archives and Records Administration in the increasingly digitized era is David Ferriero, director of the New York Public Libraries -- one of the largest public library systems in the United States and one of the largest research library systems in the world. In his current post, Ferriero is responsible for collection strategy; conservation; digital experience; reference and research services; and education, programming, and exhibitions, according to the White House personnel announcement. The NYPL has 2,600 full-time employees and a budget of $273 million. The National Archives, best known as the keeper of the Declaration of Independence, the Constitution, and the Bill of Rights, recently unveiled a draft update to its strategic plan through 2016 that includes new ideas for electronic records management and language pertaining to the creation of a new National Declassification Center.
http://benton.org/node/26733
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WHITE HOUSE STILL HAS VACANCY FOR A LESSER CZAR
[SOURCE: Washington Post, AUTHOR: Al Kamen]
In an East Room speech at the end of May, President Obama declared a new "strategic national asset": the computer networks our country depends on to keep trains running and planes from colliding, to control weapons systems and allow banks to process payments. He also promised to "personally" select a White House cybersecurity coordinator to advise him on all things cyber and to coordinate cyber-policies across the government. Two months later, White House staffers have approached a number of prospects, but still no pick. What's not to like about being Obama's cyber-czar? First, you're not really a czar, reporting as you would to national security adviser Jim Jones and White House economic adviser Larry Summers. Second, "It's a huge, huge turf war. You have Defense fighting the Treasury fighting the intel groups fighting Homeland Security" for control, he said.
http://benton.org/node/26732
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