Aug 28, 2009 ($28B in Broadband Stimulus Funds Requested)

** Planning a communications-related course? See http://benton.org/headlines_in_the_classroom to learn how Headlines might help. **

BENTON'S COMMUNICATIONS-RELATED HEADLINES for FRIDAY AUGUST 28, 2009

Three National broadband Plan workshops next week -- see http://www.benton.org/calendar/2009-08-30--P1W/

THE STIMULUS
   Strong Demand for Broadband Stimulus Funds
   High Bid No Problem for Connected Nation in Florida -- It Wins Anyway

FCC MEETING RECAP
   What kind of FCC will this be?
   FCC Launches Broad Investigation into Wireless Industry
   National Broadband Plan Update
   Update on FCC Reform Efforts
   Chessen Headed to NCTA

ENERGY & COMMUNICATIONS
   Nick Sinai's Electric Bill and How Broadband Can Help
   Setting the stage for smart grids

GOVERNMENT & COMMUNICATIONS
   DHS' Cyber Storm III to test Obama's national cyber response plan
   Pentagon: Reporter profiling under review

WIRELESS
   WiFi on steroids? First "WhiteFi" prototypes hit testing stage
   How Big Is the Apple iPhone App Economy? The Answer Might Surprise You

TELECOM/CABLE
   States Waking Up To AT&T, Verizon 'Franchise Reform' Con
   Telcos Need to Ramp Up R&D to Stay Competitive
   Cable Operators Cutting Back on Capital Spending
   Comcast and AT&T Stuff Millions Into Lawmaker Pockets

PRIVACY
   Time to Be Afraid of the Web?
   Facebook's New Privacy Policy: Underwhelming Changes
   Facebook knows too much, ACLU says in warning of quizzes
   What Parents Don't Know

OWNERSHIP
   Local Broadcasters' Quiet Consolidation
   EU's Reding backs Google in online books row
   Justice Dept. to dish out anti-piracy grants

MORE ONLINE ...
   Argentine president sends media reform to Congress
   TV audiences are growing older
   Zombies and Cocaine --What else? -- are the Hot Topics Online
   A Few Dollars at a Time, Patrons Support Artists on the Web
   Government To Ban Unwanted 'Robocalls'

Recent Comments on:
Want Fast Internet? Don't Live In the Sticks
Nielsen Decides Not To Control For PCs, Internet Access In National TV Ratings Sample

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THE STIMULUS

STRONG DEMAND FOR BROADBAND STIMULUS FUNDS
[SOURCE: National Telecommunications and Information Administration]
On August 27, the Commerce Department's National Telecommunications and Information Administration (NTIA) and the Department of Agriculture's Rural Utilities Service (RUS) announced that they received almost 2,200 applications requesting nearly $28 billion in funding for proposed broadband projects reaching all 50 US states and territories and the District of Columbia. This is the first round of American Recovery and Reinvestment Act funding aimed at expanding broadband access and adoption to help bridge the technological divide and create jobs building Internet infrastructure, with $4 billion available through loans, grants, and loan/grant combinations. Applications came in from a diverse range of parties including state, local, and tribal governments; nonprofits; industry; anchor institutions, such as libraries, universities, community colleges, and hospitals; public safety organizations; and other entities in rural, suburban, and urban areas. "Applicants requested nearly seven times the amount of funding available, which demonstrates the substantial interest in expanding broadband across the Nation," said Lawrence E. Strickling, Assistant Secretary for Communications and Information and Administrator of NTIA. "We will move quickly but carefully to fund the best projects to bring broadband and jobs to more Americans." "The overwhelming response we received underscores the extensive interest in expanding broadband across the country. Rural communities clearly recognize that broadband can expand their economic opportunities and create jobs," said Jonathan Adelstein, Administrator, Rural Utilities Service, USDA. "The Obama Administration's goal is to target funds to serve areas of greatest need. The big demand for loans as well as grants demonstrates that we can leverage private investment with USDA's $2.5 billion to deliver the greatest bang for the taxpayers' buck."
http://benton.org/node/27456
See also: Two Firms Seek Federal Help for Internet in Northern Virginia
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HIGH BID NO PROBLEM FOR CONNECTED NATION IN FLORIDA -- IT WINS ANYWAY
[SOURCE: PublicKnowledge, AUTHOR: Art Brodsky]
Imagine a state is going through a bidding process for a contract. It happens all the time. The factors that normally are taken into account are price, experience, that type of thing. Under normal circumstances, then, a bid with a high price and no experience in a given state might well lose to another bid with a lower price and lots of experience in a state. Unless, of course, the high bidder with no experience is Connected Nation. Then, as the Florida Department of Management Services showed last month, all bets are off. Last month, the state agency awarded the state contract for broadband mapping to Connect Florida, the newly established affiliate of Connected Nation. According to the Florida agency, Connected Nation's project cost will be around $7.1 million. On the other hand, the cost submitted by the second-place bidder, ISC of Tallahassee was half that - around $2.8 million.
http://benton.org/node/27454
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FCC MEETING RECAP

WHAT KIND OF FCC WILL THIS BE?
[SOURCE: Fierce, AUTHOR: Phil Goldstein]
On Thursday, the new Federal Communications Commission held its first meeting with a full complement of five commissioners. So, what kind of FCC will this be? Officials from public interest groups, representatives from carriers and technology companies and former FCC officials said that while it's too early to tell how the FCC might rule on specific issues, it's clear that this will be a much different agency than the Bush-era FCC. The consensus: Today's commission likely will be much more analytical and data-driven than it has been, it likely will be a bottom-up, staff-driven agency, and FCC Chairman Julius Genachowski likely will take a measured, patient look at pressing issues.
http://benton.org/node/27453
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FCC LAUNCHES BROAD INVESTIGATION INTO WIRELESS INDUSTRY
[SOURCE: Federal Communications Commission]
On Thursday, the Federal Communications Commission launched three proceedings related to the wireless industry. 1) A Notice of Inquiry ("NOI") that seeks to identify concrete steps the Commission can take to support and encourage further innovation and investment in the wireless marketplace. 2) A NOI that seeks to enhance its analysis of competitive conditions in the mobile wireless market. 3) A on whether there are additional opportunities to protect and empower American consumers by ensuring sufficient access to relevant information about communications services. The third proceeding is actually broader than just wireless including the information available to consumers about: choosing a provider, choosing a service plan, managing use of the service plan, and deciding whether and when to switch an existing provider or plan for all communications services, including wireline voice and wireless services, as well as broadband and subscription video (cable and satellite).
http://benton.org/node/27452
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NATIONAL BROADBAND PLAN UPDATE
[SOURCE: Federal Communications Commission]
On Thursday, August 27, Blair Levin, the director of the Federal Communications Commission's efforts to devise a National Broadband Plan, briefed FCC commissioners and the public on the progress already made and plans for the coming weeks. In the past month, the FCC has held a number of staff-led workshops on various parts of the plan. Those workshops will continue through September will a number of new workshops to be announced soon on topics including civil rights, spectrum, and content. In addition, the FCC will hold field hearings around the country. Levin's team reported that the workshops have been an effective way to cover a lot of ground in a brief timeframe. The plan moving forward is for the broadband team to: 1) report again in September on its process and calendar, 2) provide a "factual state of play" in October, and 3) deliver an analysis of key gaps in November. By the FCC's December open meeting, the National Broadband Plan team expects to have a policy framework, followed by a report on the opportunities to drive national purposes in January and wrapping up the plan in February.
http://benton.org/node/27451
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UPDATE ON FCC REFORM EFFORTS
[SOURCE: Federal Communications Commission]
Mary Beth Richards, Federal Communications Commission Chairman Julius Genachowski's Special Counsel for Reform, led a briefing for FCC commissioners and the public on efforts to reform the agency. Her review included: 1) the agency's public safety readiness, 2) data collection, analysis and dissemination, 3) the agency's licensing, comment and complaint filing systems, 4) internal and external communications, and 5) the modernization of the FCC's website and use of new media. In addition, the presentation covered the ongoing development of the FCC workforce, the agency's internal processes, and a financial review of the FCC. Moving forward, the plan is to A) seek additional internal and external input, B) prioritize recommendations, C) develop short-term and long-term plans, and D) to implement changes. Public Knowledge President and Co-Founder Gigi B. Sohn said, "From data collection to the Commission's Web site and FCC procedures, it appears as if the Commission is on the right track to make the changes to bring the agency into the 21st century."
http://benton.org/node/27448
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CHESSEN HEADED TO NCTA
[SOURCE: Federal Communications Commission]
Federal Communications Commission Commissioner Michael Copps announced that Rick Chessen, his Senior Legal Advisor and advisor on media issues, will be leaving the Federal Communications Commission to serve as Senior Vice President, Law & Regulatory Policy, for the National Cable & Telecommunications Association. Chessen will join NCTA September 8. He reports to NCTA President & CEO Kyle McSlarrow and succeeds Dan Brenner. Chessen first joined the FCC in 1994 as a senior attorney in the Cable Services Bureau. He rose to become Acting Chief of Staff of the Commission earlier this year during the acting chairmanship of Commissioner Michael Copps. Commissioner Copps said, "Rick not only took upon himself all the arduous tasks associated with being Chief of Staff, but devoted the second 24 hours of each uniquely Chessen day to shepherding the Digital Television Transition to the smoothest landing it could have made under the circumstances we inherited. Nobody in the public or private sectors knew so much about DTV as Rick and his knowledge saved the country a lot of heartache - it also saved the industry and the government from what otherwise would have been an enormous consumer backlash." During his time at the Commission, Chessen also served as Senior Legal Advisor to former Commissioner Gloria Tristani; Associate Bureau Chief for the Mass Media Bureau; Chair of the Digital Television Task Force; and Associate Bureau Chief for the Media Bureau.
http://benton.org/node/27447
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ENERGY & COMMUNICATIONS

NICK SINAI'S ELECTRIC BILL AND HOW BROADBAND CAN HELP
[SOURCE: Federal Communications Commission, AUTHOR: Nick Sinai]
Sinai just received his first summertime DC electric bill and is suffering some sticker shock. But he allows observes that the bill is: 1) confusing, 2) delivered too late for him to do anything about it, and 3) missing helpful hints about how to change his consumption in the future. He writes, "Real-time information about prices and usage is important—studies have shown that just providing information about energy consumption in real-time can change behavior enough to generate a 10% savings on your electricity bill. The Smart Grid holds the promise to make this a reality." There are many different approaches to building the communications networks that are an essential part of the Smart Grid. There are many different applications -- Smart Meters being just one -- that have different bandwidth and latency requirements, and there is no silver bullet. Commercial wireless networks will play a role, but there are also private licensed and unlicensed approaches that have their place too. But the nation will collectively miss the benefit of the Smart Grid if we can't get information to the consumers so they can act on it.
http://benton.org/node/27450
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SETTING THE STAGE FOR SMART GRIDS
[SOURCE: TelephonyOnline, AUTHOR: Sarah Reedy]
The smart grid market, evolving from advanced meter infrastructure (AMI), is experiencing a perfect storm of industry forces that combined make it one of the biggest opportunities for telecom service providers working with utilities and a host of other new and existing players. Contributing to the storm are regulatory issues, public policy, market dynamics, technology drivers, rising energy demands, climate change, increasing import dependence, aging infrastructure and higher energy prices, according to analyst firm BroadbandTrends. With so many drivers, the number of key stakeholders is also steep and ranges from regulators and standards bodies to equipment vendors and technology providers to systems integrators to consumers and, of course, network operators and the more than 2,000 US-based utilities ripe for partnership.
http://benton.org/node/27449
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GOVERNMENT & COMMUNICATIONS

DHS' CYBER STORM III TO TEST OBAMA'S NATIONAL CYBER RESPONSE PLAN
[SOURCE: nextgov, AUTHOR: Jill Aitoro]
The Homeland Security Department's third large-scale cybersecurity drill in September 2010 will test the national cyber response plan currently being developed by the Obama administration, said industry and government participants in the simulation exercise during a conference on Tuesday. Cyber Storm III will build upon the lessons learned in the two previous exercises that took place in February 2006 and March 2008, and provide the first opportunity to assess the White House strategy for responding to a cyberattack with nationwide impact. "The national cyber response plan will be an offshoot of a lot of the findings that came out of Cyber Storm I and II that will formalize the roles and responsibilities," said Brett Lambo, director of the cyber exercises program in DHS' national cybersecurity division.
http://benton.org/node/27446
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PENTAGON: REPORTER PROFILING UNDER REVIEW
[SOURCE: Stars and Stripes, AUTHOR: Kevin Baron]
Under fire following revelations that a military command in Afghanistan is compiling profiles of reporters covering U.S. military operations, Pentagon officials acknowledged Thursday that they were reviewing the practice even as they maintained that they were not making use of "positive," "negative" and "neutral" grades assigned to reporters' work by a Pentagon contractor. "For me, a tool like this serves no purpose and it doesn't serve me with any value," Pentagon spokesman Bryan Whitman told reporters as some of the affected war correspondents began demanding to see their secret military profiles. Whitman told Pentagon reporters that he was inquiring about the issue, but he added that the Pentagon is not launching any formal inquiry to the matter. "I haven't seen anything that violates any policies, but again, I'm learning about aspects of this as I question our folks in Afghanistan," Whitman said. "If I find something that is inconsistent with Defense Department values and policies, you can be sure I will address it." Meanwhile, officials with U.S. Forces-Afghanistan acknowledged Thursday that the media profiles do exist, but they maintained that no favorability ratings are compiled.
http://benton.org/node/27445
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WIRELESS

WIFI ON STEROIDS? FIRST "WHITEFI" PROTOTYPES HIT TESTING STAGE
[SOURCE: ars technica, AUTHOR: Nate Anderson]
When the Federal Communications Commission (FCC) made the momentous decision late in 2008 to allow unlicensed broadcasting devices access to "white spaces" in the television spectrum, backers hailed the move as a major step forward for US wireless networking. "WiFi on steroids," was how one engineer put it during the debate. But for white space devices to move from laboratory concept to store shelves, they would need more than steroids; they would need some sophisticated engineering. That's because the FCC imposed two critical conditions: whitespace devices must sense local transmissions from televisions and wireless microphones in order to avoid transmitting on those frequencies, and the devices must also access a geolocation database of known transmitters as a backup solution in case spectrum sensing failed. Google, Microsoft, and others promptly got to work on the database, and spectrum sensing technology has already existed commercially for years. But how would a white space device—say, one located in the kitchen next to the family computer—actually communicate with the access point providing a connection to the Internet?
http://benton.org/node/27442
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HOW BIG IS THE APPLE APP ECONOMY?
[SOURCE: GigaOm, AUTHOR: Om Malik]
Apple's app economy is worth more than $2.4 billion a year. According to mobile advertising startup AdMob, there are some $200 million worth of applications sold in Apple's iPhone store every month, or about $2.4 billion a year. Just to put that in context, Apple says about 1.5 billion apps have been downloaded from the App Store. In comparison, the Android marketplace brings in about $5 million a month or on a run rate to do $60 million in a year, AdMob says.
http://benton.org/node/27439
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TELECOM/CABLE

STATES WAKING UP TO AT&T, VERIZON 'FRANCHISE REFORM' COM
[SOURCE: dslreports.com, AUTHOR: Karl Bode]
[Commentary] The "franchise reform" bills the baby bells have been pushing state by state promise lower TV prices, but are really little more than legislative wish lists that erode consumer protections, legitimize next-generation broadband "cherry picking," strip away eminent domain rights, and make lobbying easier for carriers. After dozens of states drank a little too much lobbyist juice, consumers in those states are waking up in bed with a ragged-looking AT&T or Verizon, and no lower TV prices anywhere in sight. These bills are actually harming consumers, and it appears that most people are waking up to this fact far too late. Despite the endless failed promises, phone company lobbying astroturf front groups like TV4US are still using the promise of lower TV prices to push these franchise reform laws in additional states. TV4US even gets quoted in news reports as a consumer group concerned with high cable prices. An extra point for irony. The entire thing has been one elaborate, ingenious con, but well-lobbied state politicians continue to pretend that these laws help consumers. The media certainly hasn't helped. When bloggers and technology journalists can be bothered to cover this issue (droll video legislation is not exactly an eyeball grabber or advertising engine), they've usually taken the cost saving claims of carrier lobbyists at face value. It should be interesting to see how many more states the ILECs can con before the public really wakes up from what's been a major disinformation bender.
http://benton.org/node/27443
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TELCOS NEED TO RAMP UP R&D TO STAY COMPETITIVE
[SOURCE: GigaOm, AUTHOR: Stacey Higginbotham]
[Commentary] With venture capitalists still leery about telecommunications investments after the fallout from the dot-com crash, telcos should beef up their R&D if they want to stay competitive, Dave Burstein, a longtime telecommunications reporter, wrote on Aug. 26. Two percent of sales would be a good start, he suggests, which would mean $2.48 billion and $1.94 billion for AT&T and Verizon, respectively. AT&T spent $892 million in 2008, down from $985 million in 2007. Verizon doesn't disclose its R&D spending, but analyst Chris King at Stifel Nicolaus estimates it's very little, as most of its vendors do the work. In a time when technology moves faster than ever and so much innovation is built upon the very service the telcos provide, you'd think they'd step up their efforts at developing new ways to deliver better broadband through wires or wirelessly. Think about the history of Bell Labs, which pioneered inventions such as the transistor and the laser. Yet, the innovation is coming from startups and the equipment vendors, or even from companies such as Google and Microsoft, which are trying to build a device to deliver broadband in part of the digital television spectrum.
http://benton.org/node/27464
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LOOKING FOR CABLE'S MOMENT IN THE SUN
[SOURCE: Wall Street Journal, AUTHOR: Martin Peers]
The stocks of cable and telephone companies have largely missed out on the rally. A relative shelter from the recent stock-market storm, they have suffered from a perception that telecommunications won't benefit from an economic upturn. The fact that cable and phone companies provide the infrastructure underpinning Internet use seems to be underappreciated. Cable's long-term growth prospects are brighter than the phone sector's. Growth at both AT&T and Verizon is being driven by wireless, but that market is near saturation. Price cutting is likely to be a fact of life. Future growth will come from persuading subscribers to pay more for data services. And while cable's video dominance has been eroded by competition from phone and satellite companies, cable has offset that by selling phone and Internet services. The value of cable's broadband networks won't likely be undermined by the growing popularity of wireless Internet use. The limits of wireless capacity suggest cellphone networks won't be able to handle smoothly the expanding volume of downloads from the Internet as smart phones and netbook computers proliferate. As Sanford C. Bernstein analyst Craig Moffett has argued, services such as video, which use lots of bandwidth, are likely "to remain the province" of wired networks. Wireless carriers already are putting some of their traffic onto them through Wi-Fi networks. What is more, cable operators are cutting back on capital spending. The pressure on wireless networks means that capital-expenditure requirements for wireless businesses won't diminish any time soon.
http://benton.org/node/27463
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COMCAST AND AT&T STUFF MILLIONS INTO LAWMAKER POCKETS
[SOURCE: StopTheCap.com, AUTHOR: Phillip Dampier]
In just the second quarter of 2009, Comcast doled out nearly $3.3 million dollars of their subscribers' money lobbying elected officials on a myriad of issues, covering everything from executive compensation to sports channels to unionizing efforts. Meanwhile, Brian Dickerson, a columnist at the Detroit Free Press has also been noticing that AT&T, promising to bring competition to Comcast in cities like Detroit, came at the price of a Trojan horse called "statewide franchising."
http://benton.org/node/27438
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PRIVACY

TIME TO BE AFRAID OF THE WEB?
[SOURCE: New York Times, AUTHOR: Eduardo Porter]
[Commentary] Internet users used to comfort themselves by thinking that to become victims of the pirates of the Web, they had to frequent the online porn circuit or respond to an e-mail from the widowed wife of the former central bank governor of Nigeria. The idea was that one had to do something naughty to get caught in the wrongdoers' net, or at least go for a late-night stroll in the rough end of town. But the conceit has become untenable. Perhaps cybercops will respond more aggressively to Internet threats as they spread to the more wholesome parts of the Web, like police forces that leave crime alone in the poor parts of town but snap into action when it seeps into middle-class neighborhoods.
http://benton.org/node/27462
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FACEBOOK'S NEW PRIVACY POLICY: UNDERWHELMING CHANGES
[SOURCE: MediaPost, AUTHOR: Wendy Davis]
In response to concerns by Canada's privacy commissioner, Facebook said that it will roll out some new privacy features. But, despite some sweeping language about empowering users, the changes overall appear fairly minor. Among other tweaks, the social networking site will require third-party developers to give users more information about the type of data that's being collected. In the future, applications will have to "specify the categories of information they wish to access" -- such as birthdays, political views, etc. -- and obtain express consent for each category.
http://benton.org/node/27435
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FACEBOOK KNOWS TOO MUCH, ACLU SAYS IN WARNING OF QUIZZES
[SOURCE: San Jose Mercury News, AUTHOR: Scott Duke Harris]
Privacy advocates have long warned that users of Facebook and other social networks who seek amusement from quizzes like "What Simpsons Character Are You?" might be mortified by the way creators of such applications can access and potentially "scrape" personal information — not just about the quiz-takers, but their friends as well. Now, engaging in some online jujitsu, the ACLU of Northern California is employing a cautionary Facebook quiz of its own to illustrate how quizzes that may seem "perfectly harmless" can release an array of data to the wider world — including users' "religion, sexual orientation, political affiliation, photos, events, notes, wall posts, and groups." The app, titled "What Do Facebook Quizzes Know About You?" delivers its answer by opening a window that scrolls biographical data, attributed comments and photos. More than 8,000 participants have taken the ACLU's quiz since it was quietly released a few days ago, the ACLU said Wednesday. The group hopes to prompt Facebook to upgrade its privacy default settings for its users, now numbering more than 250 million.
http://benton.org/node/27461
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WHAT PARENTS DON'T KNOW
[SOURCE: MediaPost, AUTHOR: Jack Loechner]
According to a recent Common Sense Media survey, fielded by The Benenson Strategy Group, to examine how social networks are affecting kids and families, parents have a lot to learn when it comes to their children's behaviors online, writes Marketing Charts in summary. 49% of parents say their child was age 13 or older before starting unsupervised surfing, but just 14% of teens say they actually waited this long. The results of the poll illustrate a continuing disconnect between parents and kids when it comes to kids' digital lives. The survey of both teens and parents found that many teens use the Internet as a forum for gossip, sharing and blowing off steam, but others, unbeknownst to their parents, are also engaging in bullying and risqué behavior online.
http://benton.org/node/27440
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OWNERSHIP

LOCAL BROADCASTERS' QUIET CONSOLIDATION
[SOURCE: StopBigMedia.com, AUTHOR: Corie Wright]
You probably haven't heard, but broadcasters are devising a new scheme that may undermine the news and information you receive on your local TV newscast. In an effort to cut costs, broadcasters want to merge their newsroom operations, including personnel, rather than compete against each other. These plans, sometimes called "shared services" or "news sharing," haven't received much press coverage, but in the last few months they have quietly cropped up all over the country.The agreements allow broadcasters to combine their news resources and staff so stations can reduce the cost of producing your daily newscast. Broadcasters argue they need to consolidate their newsrooms due to declining ad revenue. But in the process, they are reducing the number of competing voices serving the community.
http://benton.org/node/27437
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EU'S REDING BACKS GOOGLE IN ONLINE BOOKS ROW
[SOURCE: Reuters, AUTHOR: John O'Donnell]
The European Union's Commissioner for Information Society and Media Viviane Reding has thrown her weight behind Internet search group Google in the row over whether it should be allowed to publish millions of scanned books online. On Thursday she added her voice to the debate welcoming "private-sector initiatives" such as Google's. "Google Books is a commercial project developed by an important player," Commissioner Reding said. "It is good to see that new business models are evolving which could allow bringing more content to an increasing number of consumers." Reding's opinion is significant as the former journalist is optimistic she will keep her position as commissioner in charge of telecoms and media when the European Union's new cabinet of commissioners is chosen later this year.
http://benton.org/node/27460
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JUSTICE DEPARTMENT TO DISH OUT ANTI-PIRACY GRANTS
[SOURCE: Variety, AUTHOR: Justin Kroll]
The first step in strengthening the recent intellectual property legislation has been taken as the Department of Justice announced more than $1.9 million in grants will be sent to law enforcement agencies around the country to help battle piracy.
http://benton.org/node/27459
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