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July 2008

New York advised to study broadband alternatives to municipal Wi-Fi

Technology consultants told New York officials today that a municipal Wi-Fi system there would be inadvisable, given the experiences of several other major cities. Representatives of Chicago-based Diamond Management and Technology Consultants Inc. suggested several other ways that the city could expand broadband Internet access. A study and recommendations by Diamond consultants will be reviewed over the coming week's by the city's Broadband Advisory Committee, Mayor Michael Bloomberg and the New York City Council, city officials said today. The consultant's study did find that New York is mostly on a par with other major U.S. cities regarding broadband adoption. However, it also noted that Internet usage remains limited among low-income New Yorkers and could be improved in industrial areas.

Police and Fire Radios Are Talking to Each Other

Emergency medical workers can now contact the police directly via radio. Fire officials use information beamed down from police helicopters. Law enforcement officers and emergency service agencies hold joint drills at high-rise buildings, jails and the city's tunnels. Seven years after the harsh lessons of the Sept. 11 attacks, New York City has improved the ability of its Police and Fire Departments to operate together. On Wednesday, these and other advances were enumerated before the Federal Communications Commission at a public hearing in Brooklyn on improving public safety through better communications among government and emergency agencies. Speakers at the hearing focused on the lack of a national broadband public safety network, noting that some cities, including New York, Washington and Philadelphia, had improved agencies' ability to talk to one another on their local networks, while others had lagged behind.

You've got too much e-mail

E-mail, the preferred communication channel of millions of Americans is no longer cool. According to a growing number of academics, "technologists" and psychologists, our dependence on e-mail -- the need to attend to a constantly beeping in-box -- is creating anxiety in the workplace, adversely affecting the ability to focus, diminishing productivity and threatening family bonds. The problem has become so severe that a new crop of entrepreneurs has sprung up with antidotes -- which sometimes involve creating more e-mail. Technology geeks who not long ago were comparing the size of their in-boxes as a gauge of Digital Age machismo are now attempting to wean themselves from Outlook and Gmail. Behind the e-mail backlash is a growing perception that, despite its convenience and everything positive it has brought to work and leisure, the tide has turned, and now once-friendly e-mail is a monster that's threatening to ruin our lives.

They Know Where You Are

Your computer knows what you did last weekend -- but that's okay because most of your other gadgets do, too. Your browser remembers your Web reading list, your cellphone saved your calls, and your MP3 player can recite the songs you heard. And most of us seem content to have all this sentient machinery memorizing our daily routines, so long as all the data stay with us. A little surveillance of ourselves can be fine if we, and nobody else, get to see the results.

Headline Highlights -- Media and Telecom Policy Developments July 2008

Picnics, baseball, and mosquitos -- what else do you expect from relaxing summer months? Anyone expecting a summer lull may have been surprised by the fireworks displayed in telecommunications policy in July. Communications surveillance, media ownership, and Internet policy grabbed the headlines. Also, see July's most-read Headlines

I. FISA Update

Just after the 4th of July, Congress approved and President Bush signed an update of the Foreign Intelligence Surveillance Act (FISA). The bill has generated great controversy in no small part because it granted liability protection to telecommunication companies that took part in the warrantless domestic spying program President Bush began after the September 11 attacks. The measure shields those firms from potentially billions of dollars in damages from privacy lawsuits. The bill authorizes U.S. intelligence agencies to eavesdrop without court approval on foreign targets believed to be outside the United States. Critics complain this allows warrantless surveillance of the phone calls and e-mails of Americans who communicate with them. The bill seeks to minimize such eavesdropping on Americans, but critics say the safeguards are inadequate.

Sen Barack Obama (D-IL) had opposed immunity for telecoms, but he ended up voting for the bill after a failed effort to strip liability protection out of the measure. A number of Obama advisors argued that the bill, though imperfect, struck the right balance between modernizing surveillance tools and providing oversight. Supports were not convinced, however. On the senator's campaign website thousands organized against him because of a changed position on the FISA update.

II. Media Ownership, Diversity and Radio

On July 29, the Federal Communications Commission held an en banc hearing and conference on overcoming financing barriers to media ownership. Commissioner Michael Copps identified as starting points 1) agreement on the overarching goal of supporting more minority and female ownership and 2) recognition that access to capital is a huge barrier to entry. But Commissioner Copps also pointed out that the FCC's own policies have actually pushed for more media consolidation rather than attempting to stem the tide.

Ironically, in the same week as the FCC commissioners held the ownership hearing in New York, the ownership of the nation's two biggest radio companies changed hands. Private equity firms Thomas H. Lee Partners and Bain Capital Partners completed the $17.9 billion purchase of radio-station and billboard company Clear Channel Communications. The deal, which had been slowed by legal battles in two states and negotiations to lower the purchase price, closed almost two years after Clear Channel began exploring strategic options in October 2006.

On July 25 the FCC approved the purchase of XM Satellite radio by now-former-rival Sirius. The FCC decided it was in the public interest to let the two companies merge even when the relevant competitive market was confined to satellite radio. However, the FCC placed the following conditions on the merged company:

  • a three-year cap on prices,
  • setting aside 8 percent of their channel capacity for minority and non-commercial programming,
  • payment of a $19.7 million penalty for past FCC rule violations, and
  • make available to consumers radios that receive both Sirius and XM.

As part of the order, the FCC also will conduct an inquiry into whether it should require that all satellite radios be built with technology that allows them to also receive high definition terrestrial radio signals.

III. Universal Broadband

On July 21, the FCC traveled to Carnegie Mellon University in Pittsburgh to discuss Broadband and the Digital Future. Rep Mike Doyle (D-PA) helped organize the event saying it was intended to address two major concerns -- the so-called "digital divide" between those who have broadband access and those who don't, and "Network Neutrality," or the openness of the Internet. FCC Commissioner Michael Copps went as far to declare access to broadband a civil right. FCC Chairman Kevin Martin said the government needs to expand its broadband mapping efforts and collect information about Internet speed tiers. The FCC is currently considering whether it should get into the business of mapping out availability of broadband.

Art Brodsky of Public Knowledge reported on the FCC's rulemaking on collecting broadband data, highlighting some of the critics of Connect Kentucky/Connected Nation. While reviewing comments filed in the proceeding, Brodsky found challenges to the "semi-sacred status of the public-private partnership." The arguments on who should map broadband deployment fall into two categories. On one side is Connected Nation and its allies -- telephone companies, cable companies and labor. On the other is the public agencies and publicly-owned utilities which are wary of too much of the "private" side taking over the equation. Connected Nation responded to Brodsky's article on Benton's website.

The Communications Workers of America (CWA) ramped up its lobbying efforts on the Hill in July, calling on House and Senate leaders to support legislation aimed at developing a national broadband policy. The union -- which represents 700,000 workers in the communications, media and other sectors -- was joined by an alliance of telecommunications and cable carriers, trade associations, health-care, education, farm, and public interest groups to urge Congress to act on two pending bills -- S. 1492, the Broadband Data Improvement Act and H.R. 3919, the Broadband Census of America Act -- to get the ball rolling. This alliance sent a joint letter to Sens. Daniel Inouye (D-Hawaii) and Ted Stevens (R-Alaska) and Reps. John Dingell (D-MI) and Joe Barton (R-Texas), copied to other key congressional and committee leaders, outlining their reasons for wanting the two bills to move through the system quickly. Some, however, criticized these efforts as an attempt to adopt a "fake national broadband strategy."

IV. Managing Internet Traffic

July has been an interesting month for anyone interested in how Internet service providers (ISPs) manage the traffic that runs over their networks.

On July 17, the House Subcommittee on Telecommunications and the Internet held a hearing on "deep packet inspection" (DPI) and its implication on online privacy. DPI allows Internet service providers (ISPs) to mine data they can collect about customers' online habits to deliver tailored ads, weed out spam, catch viruses that could possibly harm a network, or determine what practices are hogging bandwidth. The American Civil Liberties Union identifies DPI as a "massive risk" to privacy -- particularly if the government gets access to it. Subcommittee Chairman Ed Markey (D-MA) called for 1) clear, conspicuous, and constructive notice about what broadband provider's use of deep packet inspection will be, 2) meaningful, "opt-in" consent for such use, and 3) no monitoring or data interception of those consumers who do not grant consent for such use.

Later today August 1, the FCC is expected to censure Comcast over its network-management practices which surreptitiously and deceptively interfered with customers' use of file sharing technology. The action is in response to a complaint filed by Free Press, a nonprofit group that advocates for Network Neutrality, the idea that all Internet content should be treated equally. Marvin Ammori, general counsel of Free Press and author of the complaint, said, "This vote reflects the bipartisan support for protecting consumers' access to the free and open Internet. Comcast's blocking is a flagrant violation of the online rights established by the FCC. If adopted, this order would send a strong signal to the marketplace that arbitrarily interfering with users' online choices is not acceptable. Internet service providers do not get to decide the winners and losers online. Should Comcast finally be held accountable for its illegal practices, it will be the direct result of historic public involvement in this precedent-setting debate. We look forward to seeing the order, and commend the FCC for conducting such a thorough investigation on behalf of Internet users everywhere."


July's Most-Read Headline:

  1. Connected Nation's Private Interests Hit In FCC Comments
  2. Sirius-XM merger may get OK from FCC
  3. FCC Again Denies Chicago, Milwaukee TV License Challenges
  4. FCC Broadband Hearing in Pittsburgh
  5. Consumer Privacy and 'Deep Packet Inspection' Explored at House Hearing
  6. FCC's Martin: Comcast Broke Network Neutrality Rules
  7. House Hearing Takes Up Issues in Telecommunications Competition
  8. Consumers: Reject Verizon ETF Plan
  9. LCCR: "Serious Problems" with DTV Switch
  10. Nation's Largest ISPs Crafting Fake National Broadband Policy

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FCC Meeting on Public Safety Communications and the D Block Auction

On July 30, the Federal Communications Commission heard from expert panelists regarding public safety interoperable communications and the 700 MHz D Block proceeding. Experts from public safety, 911 commission, NYC government, state governments, and communications industry discussed ways to bring vitally important interoperable communications to America's first responders. Commissioner Michael Copps, noting the proximity of the meeting to the place the World Trade center once stood, highlighted the FCC's failure in helping to deploy an interoperable wireless public safety broadband network. He identified a number of unanswered questions: "What purpose should this network serve? Is it mission-critical voice? Non-mission-critical voice? Video? Data? A backbone that connects existing voice networks? Or a whole new, built-from-scratch network that can do it all? What are the construction and operational costs of each? How does each of these choices impact the financial feasibility of a public-private partnership? Should licenses be regional or national? What is the appropriate build-out level and time-frame for deployment? How can the Commission be sure that states and localities across the nation will actually make use of this network if we manage to get it built? How can the Commission be sure that the rules it selects will actually produce a bidder this time around?"

Media Shield Measure Stalls in Senate

A bill to protect journalists from having to reveal their sources in some federal courts stalled in the Senate on Wednesday, the latest victim of a partisan fight over what to do about gas prices. Democrats wanted to put aside an energy bill to debate and pass the media bill, which would shield reporters from being forced by federal prosecutors to reveal their sources, except in certain circumstances. But, on a 51-43 vote, the bill fell nine votes short of the 60 it would have needed to move forward over the GOP objections. A vote on the shield bill may now be delayed until the fall. The American Civil Liberties Union, which backs the shield law, was concerned that the bill's protections for journalists were being weakened by "the administration's relentless effort to gut significant protections in what will be the first federal shield law." The Bush administration and many congressional Republicans are strongly opposed to the media shield, arguing the bill could damage national security by harming prosecutors' ability to track leaks. Proponents argue that confidentiality has been crucial to journalists' pursuit of important stories, and that a recent flurry of attempts to compel reporters to cough up their sources' identities is proof that the legislation is needed. Republicans said they were uncomfortable about limiting the legislation to certain people, contending the government shouldn't determine who gets journalistic protections and who doesn't.

IOC admits Internet censorship deal with China

The International Olympic Committee cut a deal to let China block sensitive websites despite promises of unrestricted access. China had committed to providing media with the same freedom to report on the Games as they enjoyed at previous Olympics, but journalists have this week complained of finding access to sites deemed sensitive to its communist leadership blocked. "I regret that it now appears BOCOG has announced that there will be limitations on website access during Games time," IOC press chief Kevan Gosper said, referring to Beijing's Olympic organizers.

Barton Issues FCC Reform Draft Bill

Rep Joe Barton (R-TX), the former chairman of the House Commerce Committee, is circulating draft legislation aimed at forcing the Federal Communications Commission to act more openly under predictable deadlines. The legislation would require the FCC to break old habits that have angered regulated industries and consumer groups alike. The bill would not allow the FCC to adopt, modify or delete a final regulation without publishing the specific rule in advance. Before voting, the FCC would have to give the public 60 days to comment on proposed rules, and the chairman would not be allowed to rush the other commissioners into voting immediately after the 60-day window had closed. The bill would end the FCC's practice of seeking public comment on vaguely worded proposals and then adopting related rules that no had a chance to review. The current process effectively forces parties to seek reconsideration by the FCC or take the FCC to court. Relative to internal deadlines, the bill would give the FCC no more than 30 days to publish "any order, decision, report or action" previously adopted. The agency would also need to publish annually its "anticipated release schedule" for all statistical reports. A House aide said the draft bill's intent was to get a conversation going among lawmakers about ways of reforming the FCC.

Wanted: A National Broadband Policy

[Commentary] The hottest debate in high tech these days is whether America is on track, or behind, in broadband deployment and adoption, and what can be done to widen broadband's reach and beneficiaries. The next President—whether Barack Obama or John McCain—has an extraordinary opportunity to ensure that all Americans have affordable access to broadband and the skills and knowledge to benefit from it. This must start with development of a national broadband strategy, a coherent road map of policies and goals that complement and accelerate efforts in the marketplace to achieve universal adoption of affordable high-speed Internet connections. Government has an important role here, irrespective of people's political philosophy. Conservatives correctly observe that we treat telecom like a luxury, tax it like a sin, regulate it like a utility, and subsidize uncompetitive players and anachronistic technologies. Tax policies discourage broadband adoption, regulatory policies create barriers to investment, and government actions limit competitive opportunities for new entrants and the dissemination of information in the marketplace. Progressives note that most gaps in broadband deployment and adoption are defined by demographic and geographic factors that reflect market failures—an area where government can make a real difference. From promoting digital literacy to helping low-income consumers, to encouraging innovative applications in health care, energy efficiency, or telework, government can actually help. And policymakers at the local, state, and federal levels have indeed tried various means to encourage a more rapid rollout of broadband in rural areas.

The Internet Innovation Alliance on July 30 is announcing the formation of what it's calling a group of Broadband Ambassadors, which include executives of TiVo, Ciena, and VeriSign, as well as representatives of such nongovernment organizations as ConnectedNation and the Progress & Freedom Foundation. The group will help IIA raise awareness of the need for universal broadband availability. IIA is also calling on the next Administration to:

1) convene a bipartisan and inclusive group of political and economic leaders to offer recommendations for a national broadband strategy,

2) include actions by federal or state governments and recommendations for the private sector or Internet users,

3) expand the supply (and speed) of Internet connections, and

4) offer policies that address barriers to broadband demand, such as digital illiteracy, unaggregated demand, and illicit online activities.

(Irving and Mehlman are co-chairmen of the Internet Innovation Alliance (IIA), a coalition of business and nonprofit organizations committed to more widespread usage and availability of broadband through sound policy decisions. Irving served as Assistant Secretary of Commerce for Communications & Information during the Clinton Administration; Mehlman was Assistant Secretary of Commerce for Technology Policy under President George W. Bush.)

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