July 2008

Wireless Carriers: No Free Wireless Broadband for You

A little-noted July 25 deadline for comments is looming at the Federal Communications Commission. At stake is a plan by FCC Chairman Kevin Martin that would combine two spectrum blocks for auction and require the winning licensee to offer free broadband service to 50 percent of the United States within four years and 95 percent of the country within 10 years. Surprise! The nation's wireless carriers, including AT&T, Verizon and T-Mobile, and their primary trade association and Republican leaders in Congress are all opposing the FCC proposal. T-Mobile, in particular, claims the new network would create interference in its planned 3G service that would run next door to the FCC's proposed network.

AT&T to Oppose Sprint-Clearwire Merger

AT&T, which has the largest wireless subscriber base in the country, is asking the Federal Communications Commission to deny a merger request from Sprint Nextel and Clearwire. Sprint and Clearwire announced their intention to merge last month, saying the venture would facilitate a national wireless Internet network that would operate on a block of airwaves partly reserved for schools, cities and other nonprofits. AT&T said Sprint and Clearwire "openly state that they intend to compete with other national wireless providers - including AT&T - yet they fail to make the required showings necessary for the commission's review." In listing their holdings, AT&T said Sprint and Clearwire have discounted some of the airwaves they intend to use for the Internet service because it isn't operational yet. If those airwaves were to be taken into account, the proposed merger would be subjected to heightened scrutiny, AT&T said. AT&T argued that when it acquired Dobson Communications last year, the FCC examined airwaves that AT&T hasn't yet accessed. AT&T purchased a block of spectrum in a recent auction that won't be available until February.

US Internet companies expand worldwide

As major U.S. Internet companies stake their ground abroad in anticipation of the next billion people coming online — and the advertising revenue they might generate — the flags they are planting aren't the Stars and Stripes. Companies are trying to expand globally without seeming to, designing market-specific services with customized features that reflect differences in connection speeds, payment options and attitudes toward sex or violence. The stakes are high as the United States faces a weakening economy and a slowing of online ad growth. And the opportunities are large. People in two populous countries, India and China, are just getting online. The research firm IDC projects worldwide Internet ad spending at nearly $107 billion in 2011, compared with $65 billion this year. But getting it right will be tough. American companies that merely translate their U.S.-focused sites into other languages risk losing to homegrown businesses that can better respond to cultural nuances.

Online services tearing down walls, sharing content

Once littered with walled gardens and content silos, the digital landscape is beginning to sprout a customer-friendly ecosystem of shared content and traffic. Fueling this newfound spirit of interoperability are technologies that enable the sharing of content between sites. They include the Open Social initiative and Facebook's open development platform, both driving the "widgetization" of the Web. It's also a reflection of the surging "mash-up" movement online. A mash-up is a Web application that combines content and features from multiple sources for a specific purpose that none of the contributors do individually. The most commonly used applications are those with easily embeddable content or open APIs (programming information available to all), such as Google Maps, Twitter and Last.fm.

In TV Campaign, $300 million won't go far

Even in these tough economic times, $300 million doesn't go as far as it used to. So if that's really the figure the Obama campaign fundraising machine generates, how should it best use it? Based on history, most campaign cash is earmarked for local TV, concentrated around news and Oprah Winfrey's talkshow. As Election Day nears, ads spill further outward into daytime court and shows like "Judge Judy" and "Dr. Phil" -- reaching people you don't like to think about walking around shopping malls, much less voting. Inasmuch as this election will focus on undecided voters in swing states, Marty Kaplan -- the Norman Lear Center chair of entertainment, media & society at USC's Annenberg School for Communication -- anticipates that the campaigns will "try to target their spending on particular demographics," which requires being savvy about the audience for selected programs and not just mere geography. These swing voters are also prone to watch more network primetime than committed partisans, so Kaplan concludes that purchasing local time within network entertainment fare would be an efficient way to reach them. Small wonder that Obama's campaign will place spots throughout Olympic coverage on NBC and its cable networks in August.

Hollywood floods Dems' red carpet

It's probably not far from the truth, as the Democratic National Convention is fast becoming a ticket as prized as the Oscars, as much a destination as Sundance and as much a media moment for "Entertainment Tonight" and "Access Hollywood" as it is for MSNBC. Stars like Annette Bening, Susan Sarandon, Spike Lee, Rob Reiner and Ben Affleck are expected. Entertainers as diverse as Kanye West, Melissa Etheridge, the Black Eyed Peas, Stevie Wonder, Sheryl Crow and Rufus Wainwright are being lined up for convention-related events in Denver. And cabler Starz is coordinating a "Green Room," where delegates, celebs and other VIPs can mingle, watch politically themed movies, and listen to panels on entertainment and politics. The only thing missing are gift suites -- off-limits due to stringent lobbying rules. There will be entertainment at the Republican convention in St. Paul, Minn., but save for an expected heavy lineup of country stars, it will be tough to compete given Hollywood's affinity for Obama and the Democrats. (Current score, according to the Center for Responsive Politics: $4.4 million for Obama from the showbiz sector -- more than five times McCain's $757,546.)

McCain Learning to "Love" Web

The McCain campaign's web ad, "Obama Love," released last week has already been viewed over 259,000 times.

Digital TV: How to Be Prepared

Four trade groups -- the American Association of Advertising Agencies, the Association of National Advertisers, the National Association of Broadcasters and the Television Bureau of Advertising -- have formed a coalition to keep the advertising community informed about changes related to the Feb. 17, 2009 transition to digital TV. The new coalition intends to identify and address concerns and issues specific to the ad industry that arise due to the transition. Communications will take place through e-mail, webcasts, speakers, luncheons, one-on-one meetings and the websites of the four associations.


THIS HEARING HAS BEEN POSTPONED

Improving Consumer Protection in the Prepaid Calling Card Market

http://commerce.senate.gov/public/index.cfm?FuseAction=PressReleases.Det...

Senate Commerce Committee
Wednesday, July 30, 2008
10:00 AM
SR - 253

The Committee will examine information disclosure to consumers, allegations of hidden charges and fees, discrepancies in minutes marketed and minutes received, alleged deceptive advertising practices, and efforts by the Federal Trade Commission to combat consumer abuse in this area.

In addition, the Committee will consider S. 2998, the Prepaid Calling Card Consumer Protection Act of 2008, which was introduced by Senator Bill Nelson (D-Fla.) and cosponsored by Committee Members Senator John Kerry (D-Mass.) and Senator Olympia Snowe (R-Maine). At the hearing, Senator Nelson will preside.

Improving Consumer Protection in the Prepaid Calling Card Market
Full Committee
Date: Wednesday, July 30, 2008
Time: 10:00 a.m.
Location: Room 253, Russell Senate Office Building

Witnesses
The Honorable Eliot L. Engel, United States Representative, New York, 17th District

Panel I
The Honorable William Kovacic, Chairman, Federal Trade Commission

Panel II
Ms. Sally Greenberg, Executive Director, National Consumers League

Mr. Gus West, President, Hispanic Institute,

Mr. Barry Smitherman, Chairman, Texas Public Utility Commission

See http://commerce.senate.gov/public/index.cfm?FuseAction=Hearings.Hearing&...

and

http://commerce.senate.gov/public/index.cfm?FuseAction=PressReleases.Det...



Telecom Policy Agenda Next Week

No, no, don't make your two-week break for the beach yet... the telecom policy world will still be busy next week. 1) the FCC Advisory Committee on Diversity meets, 2) the FCC discusses Capital Markets and Ownership Diversity, 3) Kaiser hosts a discussion on the Health Blogosphere, 4) APT's explores Broadband in Low-income Communities, 5) the FCC meets to discuss Public Safety Interoperable Communications and the 700 MHz D Block Proceeding, and that's not all -- the week ends with 6) the FCC's August Open Meeting.