October 13, 2010 (Broadband Plan Reflects the Experiences of Leading Countries)

"If you can't organize you can't activate."
-- Ev Williams, Twitter

BENTON'S COMMUNICATIONS-RELATED HEADLINES for WEDNESDAY, OCTOBER 13, 2010

Busy agenda includes NIST Visiting Committee on Advanced Technology, Privacy, Cell Phone Bill Shock, and IP3 Awards http://benton.org/calendar/2010-10-13

INTERNET/BROADBAND
   GAO Report on Global Broadband Deployment and Adoption
   FCC Receives Earful on Network Neutrality Rules
   Debate Rages Over Broadband Regulation
   See also: Time Warner, Free Press Have Their Say on Broadband Reclassification

WIRELESS/SPECTRUM
   Absent Action, FCC Must Auction D-Block
   FCC Chairman: Why We Need More Wireless Spectrum
   Mobile Broadband Performance and Transparency
   FCC Wants to Stop Cellphone 'Bill Shock'
   That New Super WiFi? What's in It For You?
   Clearwire Is Said to Seek Up to $5 Billion in Spectrum Auction

ADVERTISING
   Web Ad Spending Sets Half-Year Record
   AT&T buying up ads on Google searches for 'FCC'

OWNERSHIP
   Tribune Co. Has a Deal to Exit Chapter 11
   ACA Targets Case For Comcast/NBCU Conditions

MEDIA AND ELECTIONS
   Montana Is Seeking to Uphold Campaign-Funding Curbs Jeopardized by a Supreme Court Ruling
   Democrat fights back against Fox News lawsuit
   EPIC: Privacy should be central election issue
   GOP Groups Launch Massive Ad Blitz
   Obama tries to net youth vote via the Net
   Politicians', staffers' gaffes put on replay

CONTENT
   Twitter Founders: Gladwell Got It Wrong
   Why You Should Never Pay for a Premium Online Subscription
   Amazon Expands Publishing Horizons With Short-Form Kindle Singles

STORIES FROM ABROAD
These Headlines presented in partnership with:

   Broadband survey shows UK's best and worst download speeds
   European Antitrust Deal With Microsoft Barely Affects Browser Market
   Chinese and Saudis lead way in Internet use
   Google Bets on Cheap Smartphones for India
   Chinese reformers push on censorship
   Ukraine starts telecoms privatization process
   Nigeria approves $2.5bn bid for Nitel
   Apple Summoned by Korea Lawmakers Over IPhone Queries

MORE ONLINE
   Industry has edge over government in the chase for young technology workers
   After years of bans, many schools are allowing cell phones to be used as academic tools
   Tech Buoys San Francisco

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INTERNET/BROADBAND

GLOBAL BROADBAND DEPLOYMENT AND ADOPTION
[SOURCE: House of Representatives Commerce Committee]
House Commerce Committee Chairman Henry Waxman (D-CA) and House Communications Subcommittee Chairman Rick Boucher (D-VA) released a report by the Government Accountability Office (GAO), examining the deployment and adoption of broadband in developed nations. GAO conducted a case study of broadband initiatives in seven countries identified as being particularly successful in increasing broadband deployment or adoption. It found that all seven countries had achieved higher levels of either broadband deployment or broadband adoption than the United States as of the fourth quarter of 2009.
GAO concluded that all seven countries have taken similar actions to increase deployment and adoption, including five categories of actions. It also found that the recommendations contained in the Federal Communications Commission's National Broadband Plan significantly overlap with the actions taken by those countries.
GAO provides information on the status of broadband deployment and adoption in 30 countries that are members of the Organisation for Economic Cooperation and Development (OECD). GAO found similar broadband deployment rates among the countries, but found differences in broadband adoption rates among the countries due to cost, income, computer ownership, and other demographic factors. According to GAO, broadband has been deployed to 90% or more of the households in 27 of the 30 OECD countries. Additionally, 17 of the 30 OECD countries had broadband adoption rates that were greater than the average.
GAO selected seven OECD countries for a closer examination, and found that all of the countries had taken similar actions to increase deployment and adoption. The countries: 1) established plans and policies to guide deployment and provide leadership support; 2) provided government funding through public/private partnerships; 3) promoted competition; 4) implemented strategies to make broadband services more available and useful to consumers; and 5) provided digital literacy training and consumer subsidies. GAO concluded that the FCC's National Broadband Plan recommendations largely align with the actions of the seven countries examined.
benton.org/node/43454 | House of Representatives Commerce Committee | read the GAO report | The Hill
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NETWORK NEUTRALITY PROCEEDING
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
October 12 was the deadline for the latest round of comments in the Federal Communications Commission's network neutrality proceeding.
The Open Internet Coalition told the FCC that it needs to go ahead and codify and expand its network neutrality rules, and that the rules should apply to wireless broadband, and to managed services, though it argues for not taking any action on the latter until the FCC gets a better handle on just what those services are. While OIC acknowledges that there are differences between wired and wireless networks when it comes to network management, it argues the "reasonable network management" carve-out the FCC is proposing is broad enough to handle those differences, and says that the definition of reasonable does not have to be the same for both.
AT&T said the FCC should keep its "hands-off" approach to the wireless industry, while it allows specialized services to "develop unhindered by innovation-stifling neutrality regulations." Appealing to the FCC's emphasis on broadband as a link to telemedicine, energy education, and other national purposes, AT&T argued that so-called specialized services -- those are services that ride the last mile of broadband infrastructure to the home but are not delivered on the "public Internet" -- would be at risk if a network neutrality regime were applied to them.
The National Cable & Telecommunications Association (NCTA) has split the difference between those who want the FCC to apply its network neutrality rules to wireless broadband and specialized services (the Open Internet Coalition, for example), and those who want the FCC to apply them to neither (AT&T). NCTA said that the FCC should not expand and codify its network neutrality rules, period. But if it does, the cable trade group says, it should apply them only to a "clearly defined broadband Internet access service" and not a managed service, which is not delivered via the public Internet. And NCTA argues that what is sauce for the wired ISP ought to be sauce for wireless broadband providers. NCTA says it would be "arbitrary and capricious" to apply rules to wired ISPS while exempting wireless gateways, not to mention, though NCTA actually did, that it would provide a regulatory advantage to the wireless providers.
Independent producers told the FCC that it should apply network neutrality rules, or a reasonable facsimile, to specialized services, arguing that there is no "significant evidence" that to do so would deter innovation or investment. Instead, it said, the FCC would be preserving incentives to invest in both Internet and competitive private offerings. The Independent Film & Television Association said that those principles must also be applied to wireless broadband.
benton.org/node/43483 | Broadcasting&Cable | B&C - AT&T | B&C - NCTA | B&C - IFTA
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DEBATE RAGES ON RECLASSIFICATION
[SOURCE: CongressDaily, AUTHOR: Juliana Gruenwald]
Key congressional staffers said they believe Congress should address issues related to the Federal Communications Commission's authority over broadband but they broke down along party lines as to how quickly lawmakers need to act. During a Capitol Hill forum sponsored by the Free State Foundation on the future of broadband regulation, staffers from the House and Senate Commerce Committees discussed the recent breakdown in efforts to pass network neutrality legislation being led by House Commerce Chairman Henry Waxman (D-CA) The legislation was aimed at addressing the stalemate over the issue of whether the FCC should reclassify broadband as a telecommunications service after its authority over broadband providers was put in doubt following an April federal appeals court ruling in a case involving broadband provider Comcast. Reclassification would allow the FCC to move forward on its network neutrality proceeding, aimed at barring broadband providers from discriminating against Internet content. Waxman's legislative effort stalled late last month before Congress recessed after he said he was unable to persuade Republicans to sign on to a draft bill that had the support of large broadband providers, some Internet firms and some public interest groups. The draft bill would have applied nondiscrimination principles to wireline broadband but not to wireless and directed the FCC to deal with enforcement on a case-by-case basis, rather than through rulemaking. Chairman Waxman "is open to revisiting [the issue] in the lame duck session," after the November midterm election, Tim Powderly, senior counsel on the Commerce Committee's Communications Subcommittee said. "He thinks that if Congress can't act, the FCC must go forward with what it's going to do on reclassification." Neil Fried, senior counsel to the Commerce Committee's Republican staff, however, argued that the GOP did not sign on to the effort because "there wasn't sufficient time to get Republicans comfortable with the approach being taken." He said Communications Subcommittee ranking member Cliff Stearns (R-FL) would have liked to have seen lawmakers attempt to resolve the issue much earlier than they did.
benton.org/node/43472 | CongressDaily
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WIRELESS/SPECTRUM

FCC MUST AUCTION D-BLOCK
[SOURCE: CongressDaily, AUTHOR: Juliana Gruenwald]
If Congress fails to act on legislation that would give a chunk of spectrum being sought by public safety officials for a national broadband interoperable public safety network, the Federal Communications Commission is required to auction the spectrum under current law, say Hill staffers. The FCC has proposed auctioning off the chunk of spectrum known as the D-block to a commercial bidder and using the proceeds to help finance the creation of the public safety network. It also has proposed giving public safety official different spectrum than the D-block for the network and allowing first responders priority access to roam on commercial networks during emergencies. Both Democrats and Republican leaders on the House Commerce Committee favor the FCC's approach. "There was consensus in the House that the best approach is to auction it and use the money to build a public safety network," Neil Fried, senior counsel to the House Commerce Republican staff. He added that in the absence of legislation redirecting the D-block to public safety officials, the FCC is "required under current law to auction it." Tim Powderly, a Democratic senior counsel to the Commerce Communications Subcommittee, said despite the differing approaches being pushed by the House and Senate, House Commerce Chairman Henry Waxman (D-CA) "is committed to finding a successful way forward on this."
benton.org/node/43468 | CongressDaily
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NEED MORE SPECTRUM
[SOURCE: GigaOm, AUTHOR: Om Malik]
[Commentary] If there's one bright spot for Federal Communications commission Chairman Julius Genachowski, it's been the recent order to free up under-utilized TV spectrum and use it for broadband and other open wireless transmission purposes. This is the first time in 25 years that the FCC has passed an order that frees up wireless spectrum and makes it available unlicensed for innovation. "Wireless in general is very central to our economic growth," Chairman Genachowski said. He believes that wireless and wireless broadband will have a wide-ranging impact on everything from health to entertainment to education. The FCC is working on ways to make more licensed spectrum available, he said, but he wants to make a big push on the unlicensed spectrum. "A full spectrum strategy needs both licensed and unlicensed spectrum, and I am really happy with this order," he said. "Twenty-five years ago, when the FCC released spectrum, we didn't know Wi-Fi [would] happen." Today, it's hard to find devices that don't have Wi-Fi capabilities.
benton.org/node/43453 | GigaOm
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MOBILE BROADBAND PERFORMANCE
[SOURCE: Federal Communications Commission, AUTHOR: Jordan Usdan]
On October 8, the Federal Communications Commission released a Request for Information (RFI) aimed at potential providers of mobile broadband performance measurement and mapping services. The submission period is open through November 5, 2010. This RFI release is a major step forward in implementing the National Broadband Plan's recommendation to make available better data on the performance of mobile broadband networks. We believe this effort will help inform consumers about mobile network performance, encourage competition based upon service quality, and provide useful data for policymaking and broadband mapping. The FCC is seeking a solution to measure the performance of mobile network providers. Typical sources of mobile broadband performance include drive testing, fixed network probes, application level data, network provider data, and data collected from end-user devices. Measurements and attendant data will likely focus on key performance metrics such as data throughput rates, reliability, latency, and signal quality. The FCC will continue to engage industry and other parties in discussions to determine the best methods for gathering accurate and useable data on mobile broadband performance, including the publication of performance data from other sources. The FCC intends to leverage any data collected to develop publicly available tools for consumers, network designers, and policymakers. Any data collected from the public will be subject to robust privacy protections.
benton.org/node/43470 | Federal Communications Commission | read the RFI
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CELLPHONE BILL SHOCK
[SOURCE: New York Times, AUTHOR: Edward Wyatt]
The Federal Communications Commission will propose rules on Oct 14 requiring mobile phone companies to alert customers by voice or text message when they are have reached monthly usage limits and are about to incur extra charges. FCC Chairman Julius Genachowski will propose the commission's consumer empowerment agenda, aimed at ensuring that users of new technologies do not have to worry about hidden costs, confusing billing practices and what the commission calls "bill shock." Proposed rules would require cellphone and mobile Internet companies to notify customers when they were about to incur roaming charges or other higher-than-normal rates that were not covered by their monthly plans. The proposals, which have been strongly opposed by mobile phone companies and their trade groups, are expected to be approved by a majority of the commission at its monthly meeting Thursday. The chairman's office rarely brings matters to a commission vote without the support of a majority of the board.
benton.org/node/43482 | New York Times | USAToday | Bloomberg
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WHAT DO WHITE SPACES MEAN FOR YOU?
[SOURCE: Wired, AUTHOR: Ryan Singel]
What will wireless services offered over White Spaces look like? Will it replace the 3G service we pay for our smartphones? How fast will it be? Will we need new equipment or can our current laptops and cellphones just be upgraded? The short answer is that the new spectrum could be really great news for rural areas, won't be nearly as useful in dense urban areas, though the characteristics of the new spectrum could make for some very smart uses, says Bill Kish of Ruckas Wireless, which is known for its innovative Wi-Fi antennas. Kish doesn't expect prototypes until 2012, since the net's standards-setting body IEEE is just starting to work on the spec. Meanwhile chip makers still have much work to do catching up on the capabilities of Wireless N, which in theory allows routers to stream across 4 channels to the same user simultaneously (think Hi-Def movie streaming). But the chip makers aren't there yet. The other impediment is that so far this band is limited to the United States, which reduces hardware makers' incentive to build out devices for this spectrum. If other parts of the world follow suit, expect the race to get more competitive.
benton.org/node/43466 | Wired
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CLEARWIRE AUCTION
[SOURCE: Bloomberg, AUTHOR: Serena Saitto, Amy Thomson]
Clearwire, the high-speed wireless carrier, is seeking to raise $2.5 billion to $5 billion in a wireless spectrum auction that has attracted telephone and cable companies.
The company is selling up to 40 megahertz of spectrum per market, only a slice of its wireless capacity. AT&T, Verizon Wireless, Deutsche Telekom AG, Time Warner Cable and Clearwire's majority owner, Sprint Nextel, are among potential buyers of the spectrum. The bidding is in its second round and is being managed by Deutsche Bank AG.
benton.org/node/43478 | Bloomberg
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ADVERTISING

RECORD WEB SPENDING
[SOURCE: MediaWeek, AUTHOR: Mike Shields]
Advertisers spent $12.1 billion on the Web during the first half of 2010, a record for a half-year period, according to the Interactive Advertising Bureau (IAB) and PricewaterhouseCoopers (PwC). Spending climbed by 11.3 percent vs. the same period in 2009. That spree was fueled by a robust $6.2 billion in spending during Q2, marking the second-largest revenue quarter ever tracked by the IAB/PwC (roughly $6.3 billion was spent during Q4 of last year). The record-setting first half was also buoyed by a resurgent display market, which saw revenue surge by 16 percent to more than $4.4 billion. While display roared back to life, online video—one of the few bright spots during the recession—continues to grow at a blistering pace. According to the IAB/PwC report, ad spending on digital video enjoyed its best quarter ever, jumping 31 percent vs. the first half of '09. Still, digital video represented just 5 percent of online spending in Q2, according to the IAB/PwC. Despite the health exhibited by display and video, however, search still accounts for the largest chunk of online ad dollars: 47 percent during the first half of 2010, per the IAB/PwC. Search spending grew by 11.6 percent to more than $5.7 billion for the first six months of 2010.
benton.org/node/43469 | MediaWeek
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OWNERSHIP

TRIBUNE PLAN
[SOURCE: The Wrap, AUTHOR: Dominic Patten]
The Tribune Company has reached a settlement and reorganization with major creditors in its 22-month bankruptcy case. If it goes through, it could see the troubled media giant finally in the clear. As part of the proposal, JPMorgan Chase and other senior lenders have agreed to contribute $120 million in cash to bondholders. When factored in with additional contributions by holders of senior Tribune loans, this would bring the company's creditors' financial return to about 32.73 cents on the dollar, or $420 million. Tribune said it would be meeting the Delaware bankruptcy court- ordered deadline of Friday to file the new plan and the necessary disclosure statement. A scuttling could occur if smaller creditors such as Aurelius Capital Management decide the new deal is not to their liking. The New York-based hedge fund is well known to be litigious and seems certain to submit its own reorganization plan throwing a spanner in Tribune's latest works. Others could join the bondholder or submit plans of their own as well meaning more mediation and more months in court.
benton.org/node/43464 | Wrap, The | Reuters
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CONTENT

GLADWELL GOT IT WRONG
[SOURCE: GigaOm, AUTHOR: Liz Gannes]
"Laughable," "absurd," "ludicrous" and "pointless" were words Twitter founders Ev Williams and Biz Stone used Monday night to describe a recent Malcolm Gladwell story in the New Yorker about the futility of social media to create real social change. Stone said he could see validity in Gladwell's point that effecting meaningful and sustained social change requires strong relationships and hierarchical structure. But he added, "The real-time exchange of information — a service like Twitter — it would be absurd to think it's not complementary to activism. When it really comes down to it, it's not going to be technology that's going to be the agent of change. It's going to be people; it's going to be humanity. "Anyone who's claiming that sending a tweet by itself is activism, that's ludicrous — but no one's claiming that, at least no one that's credible," said Williams. "If you can't organize you can't activate," Williams said, criticizing Gladwell for at one point conflating the editability of Wikipedia with Twitter. "I thought [the article] was entertaining but kind of pointless."
benton.org/node/43449 | GigaOm | read Gladwell's take
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DON'T PAY FOR PREMIUM
[SOURCE:Fast Company, AUTHOR: Austin Carr]
To the average user, free media sites such as Hulu, YouSendIt, Rhapsody and others operate on the same business model as a corner crack dealer: Take a taste for free. When you need more, you'll pay. After hooking millions of U.S. users, Hulu, for example, recently unveiled a $9.99/month Hulu Plus service in hopes of converting its free user base into paying customers who want more and newer content. Free photo sharing site Flickr offers unlimited uploads and storage in an upgraded pro account for an annual fee. Free online streaming music services such as Spotify (in Europe and supposedly soon in the U.S.) and Pandora offer commercial-free play or mobile downloads as premium services in hopes of increasing subscriptions. But the assumptions most people have about the freemium model are wrong, say some of the most successful service providers. They're not dependent on your premium bucks. "It's not the goal," Pandora founder Tim Westergren tells Fast Company. "We're fundamentally believers in free. The subscription business is growing nicely, but it's not the cornerstone of our business. It's not that we are trying to push people into subscription, or cripple our free service. That's not our strategy." Instead, Westergren is focused on one thing: expanding market share. It seems to be working.
benton.org/node/43447 | Fast Company
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STORIES FROM ABROAD
These Headlines presented in partnership with:


BROADBAND SURVEY SHOWS UK'S BEST AND WORST DOWNLOAD SPEEDS
[SOURCE: Telegraph.co.uk, AUTHOR: Conrad Quilty-Harper]
A new survey has revealed areas with the fastest and slowest broadband speeds across the United Kingdom. Liverpool has the highest average broadband speed of 7.72Mbps, with Dumfries in Scotland polling the lowest with average speeds of only 2.89Mbps. The survey reveals that 3.5 million people receive average download speeds of less than 4Mbps, with customers in Scotland, the West Midlands and Wales receiving the lowest download speeds. At the other end of the scale 2.5 million people have average download speeds over 7Mbps, with Liverpool, Manchester, Middlesbrough and Lincoln polling the highest.
benton.org/node/43446 | Telegraph.co.uk
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EUROPEAN ANTITRUST DEAL WITH MICROSOFT BARELY AFFECTS BROWSER MARKET
[SOURCE: New York Times, AUTHOR: Kevin O'Brien]
When Europe settled an antitrust case over Web browsers with Microsoft in December 2009, it hoped to dislodge the world's biggest software maker from its dominant position in that market by requiring it to offer rivals' products. As part of that, Microsoft in March started sending software ballot screens to 200 million Windows users in Europe. The screens ask users to choose a default from a list of 12 browsers including Internet Explorer, Firefox, Google's Chrome, Opera and Apple's Safari. Six months into the process, the initiative appears to be having only a minor influence on consumers, prompting a renewed debate about the effectiveness of such antitrust remedies.
benton.org/node/43444 | New York Times
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CHINESE AND SAUDIS LEAD WAY IN INTERNET USE
[SOURCE: Financial Times, AUTHOR: Tim Bradshaw]
People in China and the Middle East are the busiest and most enthusiastic Internet users, a study of the world's online habits has revealed. The Chinese are also among the most receptive to brands and advertisers communicating with them on social networking sites, underlining the substantial and still largely untapped opportunity for online marketers in Asia. The survey shows how emerging markets are overtaking western Europe and North America in social networking and reveal sharp regional differences in patterns of behavior. TNS ranked the online populations it sees as the most highly engaged in the Internet through the time spent using it and people's attitudes to the technology. Egypt, Saudi Arabia and China topped the list, with about 55 per cent "highly engaged". Turkey, the third-largest nation represented on Facebook, was the only European country to appear in the TNS top 10. Advertising agencies have seen rapid growth in marketing expenditure by clients in China and Brazil, as well as in digital channels.
benton.org/node/43443 | Financial Times
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