March 2008

D Block Spectrum Auction: Policy Right; Business Wrong

[Commentary] It is really a shame the FCC’s D Block/Public Safety auction didn’t work. But even in the failure, we should be delighted at the enormous policy progress it represents. Morgan O’Brien's Cyren Call plan brought an extraordinary revolution in spectrum policy and emergency communications. Marx would be disappointed because change here was so clearly the work of a handful of individuals, not inexorable economic forces. When law enforcement leader Harlin McEwen recruited safety leaders to support O’Brien’s plan, the FCC adopted and applied many of its key principles to the pre-existing spectrum allocation. In doing so, the Commission basically followed the subsequent plan proposed and lobbied hard by Reed Hundt’s now-defunct Frontline. (There in two sentences is a year’s worth of intensive lobbying by scores of parties!) Morgan and Harlin touched off tectonic shifts in spectrum licensing policy and emergency communications architecture, and the FCC sought to implement them. In a single year there was a huge policy break made from our current balkanized, compartmentalized and non-standardized communications to a modern, national Internet Protocol-based approach. From local everything, look at what happened. Thanks to these folks’ leadership, we have gone from local to national license, from local to national network, from self-owned to managed services, from narrow (and “wideband”) to IP broadband, from siloed access control and identity management to shared core services, from separate systems to sharing commercial spectrum and networks, and from separate technology to sharing in the benefits of commercial R&D. These are all extraordinary and positive developments, whatever happens next in the auction.
http://www.benton.org/node/10319

Connected Nation Study Questioned

State Rep. Dwight Loftis of Greenville (SC) is questioning the validity of a new Connected Nation study that says broadband Internet service is available to 94 percent of households across South Carolina. The study, released last week, was commissioned by a special committee of state lawmakers studying broadband infrastructure in South Carolina. Rep Loftis questions the report because it's based on information supplied by the telecommunications and cable companies that sell broadband service. He's introduced legislation that would require broadband providers to report their areas of service to the state Public Service Commission. Information collected by the state commission would be more credible.
http://greenvilleonline.com/apps/pbcs.dll/article?AID=/20080321/BUSINESS...

Fox Challenges FCC’s Married by America Fine

In 2003, Fox aired a program called "Married by America" which featured pixilated nudity and was later fined by the Federal Communications Commission. The fine was initially $1.18 million -- $7,000 for each of the 169 stations that aired the program -- but the FCC wound up only fining the handful of stations where complaints had actually been filed in that market per a new policy, calling it part of its "appropriately restrained enforcement policy." On Monday the network announced, "Fox will not be paying the indecency fine imposed by the Federal Communications Commission against five of its owned stations in the forfeiture order issued Feb. 21, 2008, for the April 7, 2003, airing of the program Married by America. Sinclair Broadcast Group and Mountain Licenses L.P. will also not be paying the indecency fine."
http://www.broadcastingcable.com/article/CA6544311.html

After the Election, What of Cable News?

The 2008 presidential campaign season has been a long and heady one for the cable news networks, which have telecast and heavily promoted 23 primary debates and used plot-changing primary nights to generate double-digit ratings increases. But the history of cable news viewership is a roller coaster of steep highs, reflecting major news stories, followed by deep drops. This presidential campaign has provided such a sustained high for Fox News, CNN and MSNBC that cable news followers are asking whether the cable news channels risk a crash when the political drama subsides, or whether they can hold on to any of their expanded audiences after the election. Dr. Larry Sabato, founder and director of the University of Virginia’s Center for Politics, believes cable news can sustain some of the newfound interest in politics. Indeed, it’s about time that television, which he said has gotten pretty good at covering elections and campaigns, figured out how to cover governance, he said.
http://www.tvweek.com/news/2008/03/after_the_election_what_of_cab.php
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New Telephone Subscribership Report

The Federal Communications Commission released its latest report on telephone subscribership levels in the United States. The report presents subscribership statistics based on the Current Population Survey conducted by the Census Bureau in November 2007. The report also shows subscribership levels by state, income level, race, age, household size, and employment status. In November 2007: 1) The telephone subscribership penetration rate in the U.S. was 94.9%, an increase of 1.5% over the rate from November 2006, 2) The telephone penetration rate for households with incomes below $20,000 was at or below 92.2%, while the rate for households with incomes over $60,000 was at least 98.6%, 3) Among the states, the penetration rates ranged from a low of 88.6% in Indiana to a high of 98.5% in North Dakota, 4) Penetration rates ranged from 89.5% for households headed by a person under 25 to at least 96.0% for households headed by a person over 55, 5) Households with one person had a penetration rate of 91.8%, compared to a rate of 96.7% for households with four to five persons, and 6) The penetration rate for unemployed adults was 93.2%, while the rate for employed adults was 96.1%.
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-280979A1.doc

Telephone Penetration by Income Report

The Federal Communications Commission released a report presenting data on telephone penetration levels on a state-by-state basis for various income categories. The report presents penetration statistics based on individual household data from the Current Population Survey conducted by the Census Bureau in March 2007. 1) In March 2007, penetration among low-income households (under $10,000 annual income in 1984 dollars) nationwide was 88.4%. This contrasts with an overall nationwide penetration rate of 94.6% in March 2007. 2) Since 1985, when the FCC first established Lifeline to help low-income households afford the monthly cost of telephone service, penetration rates among low-income households have grown from 80.0% to 88.4%. 3) States that have provided a high level of lifeline support for telephone service for low-income consumers experienced an average growth in penetration of 3.2% for low-income households from March 1997 to March 2007. In contrast, states that provided a low level of lifeline support experienced an average decline of 0.6% in telephone penetration rates for low-income households between March 1997 and March 2007. 4) Penetration rates among low-income households ranged from a high of 94.9% in Vermont to a low of 79.4% in Arkansas in March 2007.
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-280981A1.doc

USAC Nominations Sought

The Federal Communications Commission is seeking nominations for the Board of Directors of the Universal Service Administrative Company. Specifically, the FCC seeks a representative for competitive local exchange carriers and a representative for interexchange carriers (other than Bell Operating Companies) with annual operating revenues in excess of $3 billion. The position of the Board member representing competitive local exchange carriers is currently vacant. That seat will expire on December 31, 2008. The position of the Board member representing interexchange carriers with annual operating revenues in excess of $3 billion has been vacant since Joel Lubin was appointed to represent non-rural incumbent local exchange carriers. That seat will expire on December 31, 2009. Only members of the industry or non-industry group that a Board member will represent may submit a nomination for that position. All nominations must be filed by April 24, 2008.
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DA-08-668A1.doc

Cuba blocks access to top Cuban blog

The Cuban authorities have blocked access from Cuba to the country's most-read blogger, Yoani Sanchez, she said on Monday. Sanchez, whose critical "Generacion Y" blog received 1.2 million hits in February, said Cubans can no longer visit her Web page (http://www.desdecuba.com/generaciony/) and two other home-grown bloggers on the Web site on a server in Germany. She has criticized Cuba's new leader, Raul Castro, who formally took over from his ailing brother Fidel Castro last month, for his vague promises of change and minimal steps to improve the standard of living of Cubans.
http://www.reuters.com/article/internetNews/idUSN2432888520080324

Health Care Journalism on TV

The public is turning to TV more and more for health information, creating a surge of news and entertainment shows on the subject. Health care journalists are fighting to tell the story in a time of scarce resources. Below find links to a couple dozen stories on TV health care journalism.
http://www.tvweek.com/health-care-journalism/index.php
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Thoughts on the D Block/Public Safety Broadband Network Auction: Policy Right; Business Wrong

David Aylward

It is really a shame the FCC’s D Block/Public Safety auction didn’t work. But even in the failure, we should be delighted at the enormous policy progress it represents. Let’s hope the parties involved get the business side correct on the second round.