May 2008

FCC cracks down on Universal Service Fund cheats

They rigged bidding auctions for contracts to sell computers to school libraries. They created bogus companies and billed the government for hundreds of thousands of dollars. They got school administrators to buy equipment on the false premise that funding for the gear had been secured. They inflated the cost of the products that they provided to schools. Worst of all, they demonstrated that it is just a little too easy to game the system. Another chapter in the Federal Communications Commission's troubled Universal Service Program (USF) has opened. The agency has debarred or announced suspension and debarment proceedings against seven people accused or convicted of cheating the USF's system for distributing broadband related equipment to schools.
http://arstechnica.com/news.ars/post/20080520-fcc-cracks-down-on-univers...

CDT: Global Internet Freedom Should Be Top Human Rights and Foreign Policy Priority

The Congress and Administration should make global Internet freedom a top human rights and foreign policy priority, CDT said today in testimony submitted to the Senate Judiciary Subcommittee on Human Right and the Law. The government should closely monitor and report on global Internet freedom and factor progress in this area into criteria for development assistance and conditions for trade agreements. CDT also called for greater cooperation between the U.S. government and the technology industry to better manage human rights risks associated with offering Internet services in repressive countries.
http://cdt.org/testimony/20080520harris.pdf

Virgin Mobile USA sees telecom consolidation

Virgin Mobile Chief Executive Dan Schulman said on Tuesday he expects more consolidation in the U.S. telecommunications industry, including deals among providers who rent space on larger operator's networks. Along with deals among mobile virtual network operators (MVNOs) he also expects other operators of wireline, wireless and cable networks to consolidate.
http://www.reuters.com/article/technologyNews/idUSN2040309120080520

MPAA Asked to Look Into Iron Man Ads

Are those promos for Iron Man too intense for the tykes? The Motion Picture Association of America is being asked to decide. The Better Business Bureau referred TV ads for two Paramount films, including blockbuster Iron Man, to the MPAA to decide whether the films should have been advertised in shows targeted toward kids under 12. PG-13 Iron Man features some scenes of intense violence and was advertised during kids’ shows, said the BBB's Children's Advertising Review Unit. CARU similarly referred another Paramount film, the somewhat lower-profile Drillbit Taylor, to the MPAA for the same call.
http://www.broadcastingcable.com/article/CA6562814.html?rssid=193

Today's Quote 05.20.08

"Our bandwidth . . . is gold."
-- Dr. Warren Ashley, director of the Center for Mediated Instruction and Distance Learning at Cal State Dominguez Hills.

Exclusive Phone Deals Assailed

A group of small, rural wireless-phone companies plans to escalate an attack on big rivals, trying to persuade federal regulators to outlaw the kind of exclusive deals that have limited availability of Apple's iPhone and other popular mobile devices. The Rural Cellular Association plans as early as Tuesday to file a petition with the Federal Communications Commission asking the agency to investigate the use of exclusive deals that big wireless carriers such as AT&T Inc. strike to sell hot mobile phones. These deals can mean that smaller carriers can't offer the newest phones for months or years. Most Vermont residents, as well as residents in rural areas of 15 other states, can't use the iPhone because AT&T offers only roaming coverage there, and other carriers who do offer cellphone service can't sell the iPhone, according to the complaint. The trade group represents about 80 small and rural wireless companies, most serving fewer than 500,000 customers. The rural carriers' complaint could reopen a thorny issue for the large wireless carriers, which have been under increasing pressure from the FCC and Congress to give consumers more freedom to use whatever phones or gadgets they want on wireless networks.
http://online.wsj.com/article/SB121124652636205577.html?mod=todays_us_ma...
(requires subscription)

MMTC Urges FCC to Rethink Localism Proposal

The Minority Media & Telecommunications Council asked the Federal Communications Commission not to reinstate a rule that would require broadcasters to locate their main studio in their city of license. The FCC proposed the move as a way to increase localism, but the MMTC, joined by the Independent Spanish Broadcasters Association, argued in a filing with the commission that even if the move did advance localism, it would decrease diversity. They call it a case of a rule "aimed at advancing one laudable objective that would, in practice, undermine the agency's pursuit of another, equally laudable objective.” Why? The groups said it would have a disproportionate impact on minorities, which entered the markets later and were not able to cluster stations sharing the same community of license. And more broadly, they argued, the move would impose "enormous costs" on broadcasters in general, which it called a "receding tide that sinks all boats."
http://www.broadcastingcable.com/article/CA6562181.html?rssid=193

Spending Bill Would Boost Aid for Digital TV Transition

Federal plans for the 2009 transition to digital television would be slightly tweaked under language affixed to the Senate version of the war supplemental spending bill. An amendment that would assist broadcasters and TV viewers in rural areas in the run-up to the transition was adopted by the Senate Appropriations Committee last week. The House passed its version of the supplemental spending bill on May 15. The Senate plans to begin debate on its bill Tuesday. The digital TV amendment was offered by senior Senate appropriators Daniel K. Inouye (D-Hawaii) and Ted Stevens (R-Alaska), who are also chairman and ranking member, respectively, of the Commerce, Science and Transportation Committee.
http://public.cq.com/docs/cqm/cqmidday110-000002878575.html

FCC Summit on EAS

The Federal Communications Commission's Public Safety and Homeland Security Bureau hosted a Summit on Emergency Alert System (EAS). The summit was designed to discuss the current state of the nation's EAS and what is needed to transition to a more robust, next-generation alert and warning system. Derek Poarch, the chief of the FCC's Public Safety and Homeland Security Bureau (PSHSB) led the summit. The first panel, moderated by Tom Beers, chief of the Policy Division PSHSB, discussed the current state of the nation's EAS initiative. Discussions focused on failure points within the system and ways to improve testing protocols. The second panel was moderated by William Lane, chief engineer of the PSHSB, and discussed new technologies, possible policies and protocols that should be implemented to ensure compatibility between Federal implementation of the Common Alert Protocol (CAP) architecture and state government operations. Both panels provided a great deal of information and shed some insight on methods currently used in various cities, states and regions. The discussions were lively, as both moderators noted, and certainly will encourage additional discussion and idea exchange among the participants. An action item list for a follow-up was not presented, which could allow the process to become nothing more than an exercise to talk about the problem but not really provide any solutions or answers.
http://radiomagonline.com/currents/news/fcc-summit-on-eas-0519/

Best Buy: FCC has no power to fine us over analog TVs

The nation's biggest electronics retailer has told the Federal Communications Commission that the agency lacks the authority to punish Best Buy for screwing up its digital transition TV selling rules. "The Commission never before has claimed, asserted, or exercised direct or ancillary jurisdiction over retailers, or retail practices, of the nature that is asserted" by the FCC, Best Buy attorneys say. And the appliance giant charges that the Commission's recent Notice of Apparent Liability (NAL) holds the company to "a standard of flawless compliance." That's especially unfair, Best Buy complains, given that the FCC's NAL also contains mistakes. "The Commission has not claimed any express authorization from Congress to enact the Labeling Rule, and none exists," Best Buy argues. Best Buy concedes that the agency takes its authority from court decisions that say that if a matter is "reasonably ancillary to the effective performance of the Commission’s various responsibilities," the FCC can make rules that have teeth. But the company insists that the Communications Act limits the agency's authority to matters regarding "communication by wire or radio." It does not give the agency the power to regulate retailers who sell related equipment.
http://arstechnica.com/news.ars/post/20080519-best-buy-fcc-has-no-power-...