September 2008

McCain Adviser Has Russian Telecom Ties

A top adviser to John McCain's campaign, former lobbyist Charlie Black, previously represented a Moscow think tank run by former Russian Telecommunications Minister Leonid Reiman. BKSH Associates Inc. received $50,000 in 2005 for lobbying the US National Security Council and other government agencies on behalf of the nonprofit think tank headed by Reiman, lobby filings show. Black founded the firm and served as chairman until he quit in March. The filings don't make clear what the lobbying effort sought. Reiman, who has long been a close associate of Russian Prime Minister Vladimir Putin, is now an adviser to President Dmitry Medvedev. Advisers inside the McCain campaign have faced criticism over their lobbying ties, given the candidate's frequent complaints about lobbyists' influence. Russia's invasion last month of its southern neighbor, Georgia, has complicated the equation, as top McCain advisers have lobbying ties to both sides. In May, Sen McCain (R-AZ) banned campaign staffers and aides from working as registered lobbyists or working on behalf of foreign interests. But the policy doesn't address longtime foreign lobbyists such as Black who have recently left their firms. Mr. Black has been singled out for criticism by some liberal interest groups. A spokesman for Sen McCain said that the former lobbying efforts of the candidate's advisers don't mean their advice to the Republican standard-bearer is compromised. The fees to Black's firm were paid by the Center for Development of the Information Society, known by its Russian acronym as the RIO Center. When the RIO Center hired BKSH in 2005, Reiman was chairman of the RIO Center's board of trustees. Black and BKSH also registered in 2003 as foreign agents for the Russian government-controlled Russian Information Agency for a fee to BKSH of $10,000 a month. The firm agreed to "arrange meetings for visiting dignitaries...[and] provide counsel to foreign principal relating to the United States Congress, the Executive Branch, and other U.S. political entities," a Justice Department filing states.

Obama bytes into new-media effort

Sen Barack Obama's new-media platform to reach potential voters is lining the pockets of wireless companies. According to campaign finance reports filed with the Federal Election Commission, the Democratic presidential candidate has easily outspent his Republican opponent, Sen John McCain (R-AZ), on wireless services. Sen Obama paid a total of $2.1 million to Verizon Communications Inc. between January 2007 and July, according to the reports, the latest of which were filed in August. During the same period, Sen McCain paid about $410,000 to units of AT&T Inc., Verizon and U.S. Cellular Corp. The disparity highlights the willingness of Obama's campaign to embrace mobile technology.

Ad body opposes Google-Yahoo alliance

The Association of National Advertisers on Sunday came out against a controversial search advertising alliance between Yahoo and Google, complaining to the Department of Justice that the partnership will "control 90 per cent of search advertising inventory and states ANA's concerns that the partnership will likely diminish competition, increase concentration of market power, limit choices currently available and potentially raise prices to advertisers for high quality, affordable search advertising." The two companies said they would delay implementing the partnership for 100 days to allow the Department of Justice to study it.

Google's future and how it shapes ours

As Google celebrates its 10th birthday, the LA Times talked with Internet experts about what the company should do over the next decade. Interviewees include: Michael Arrington, TechCrunch; Kevin Bankston, Electronic Frontier Foundation; Max Levchin, Slide and Yelp; Marissa Mayer, Google; Mike Sheldon, Deutsch LA; Danny Sullivan, SearchEngineLand.com; Siva Vaidhyanathan, University of Virginia.

Afghanistan's Communications Revolution

[Commentary] Less than seven years ago, the Taliban ruled Afghanistan with a murderous fist, depriving Afghans of their most basic rights. A key component of the Taliban's suppression was preventing people from communicating with one another; the country had virtually no telephones and no access to the Internet. To call relatives and friends who lived abroad, Afghans literally had to leave their own country. Today, Afghanistan bears little resemblance to the nation it was long forced to be. Working together after the Taliban was removed from power, the U.S. and Afghan governments recognized the importance of dramatically increasing access to communications networks and establishing access to the Web. Experts from around the world helped Afghanistan establish a modern ministry of communications, capable of quickly licensing private mobile phone providers, effectively regulating a competitive communications environment and encouraging direct foreign investment into the extremely challenging post-conflict economy. Improved access to communications and the decreased cost of using these transformative technologies have allowed the Afghan people to explore new ideas and information that counter the monopoly of misinformation and lies used for centuries to oppress women and others. These tools help deliver essential government services, including education and health care, more efficiently and less expensively throughout the country. [David A. Gross is ambassador and U.S. coordinator for international communication and information policy. Amir Zai Sangin is Afghanistan's minister of communications and information technology.]

Regional Bells Lose an Appeal Over Service

Ten years ago, the US Court of Appeals for the 5th Circuit in New Orleans voted 2-1 to reverse a ruling that would have allowed SBC, US West, and Bell Atlantic to enter the long distance market. The Regional Bell Operating Companies (RBOCs or Baby Bells) argued that provisions in the Telecommunications Act of 1996 were a "bill of attainder" or a specific punishment for past behavior without a trial. "First and foremost, we think that the [provisions of the law] are not punitive because they do not impose a perpetual bar," the court wrote. At the time, the FCC had not approved any RBOC bids to enter the long distance market -- the Commission was trying to use
approval as a way to open to competition the $110 billion local phone market.

Faced with 'Convergence', FCC Takes Closer Look at Internet Access Via cable

Ten years ago, the Federal Communications Commission was asking, "Is Internet over cable a 'cable service,' a 'telecommunications service' or an 'information service'?" A working paper released by the FCC began to address this question and how the agency should approach regulation. The paper was meant to begin a discussion between branches of the government and industry. "The whole point," said the paper's author, "is to say, hey, we've got this problem, and it's a big problem. When you have the capability the Internet provides -- now you can do almost anything over one medium -- you have to start thinking which rules are applicable, or whether any of our rules are applicable at all."

Wilmington North Carolina DTV Transition Set for 12 Noon Monday September 8

Following a Sunday morning telephone conference call with Wilmington North Carolina broadcasters the Federal Communications Commission has confirmed that the digital television transition in that TV market will take place as scheduled on Monday September 8 at 12 noon. A link to the webcast (http://www.fcc.gov/realaudio/#sep8) of a Monday morning event in downtown Wilmington that will mark the transition starting at 10:30 am local time is available. (http://www.fcc.gov/realaudio/#sep8)

McCain: Media-Lite

The Republican Party platform talks little about media issues, despite the oft-expressed media-policy concerns of its presidential nominee, Sen. John McCain (AZ). That puts it in strong contrast to the Democratic platform, which bears the distinctive imprint of Sen. Barack Obama's (IL) relatively aggressive communications agenda. The Republican platform is silent on the issues of network neutrality, media ownership, broadband penetration, content control of the media and, surprisingly, cable a la carte. The only mention of television is a reference to the government-run broadcasting service to Cuba, TV Marti. "Cable" and "media" do not appear at all, and "broadband" comes up once in reference to providing long-distance education. The Internet is referred to numerous times, including the party's desire to "permanently" ban Internet-access taxes, block any new "cell-phone taxes," and block online child porn, predators and Internet gambling. Erik Huey, a veteran Democratic political strategist and partner with law firm Kilpatrick Stockton, called it "curious" that McCain's platform didn't contain much communications policy, "given his prominence on the Commerce Committee over the past decade." But Huey had some theories, including that the campaign was not focusing on those issues because "you don't want to take on any battles you don't need to take on. Maybe [McCain] just said, 'We'll table [a la carte]. I don't want to get into a fight with friends in the cable industry, particularly when those folks are making contributions to the campaign.'" Huey admitted that it just might be that the campaign has bigger fish to fry. "The reality is oftentimes that the communications issues, compared with some of the bigger issues, get lost in the shuffle," he said. Harold Feld writes that "it is unbelievable that the Republicans treat a multibillion dollar industry that has become one of our most critical pieces of infrastructure and major drivers of our economy as an afterthought to the business of cutting taxes and extending offshore drilling."

McCain was knee-deep in UNE-P

[Commentary] Although it is true that Sen John McCain (R-AZ) probably has a limited grasp of Internet culture or content, as chairman of the Senate Commerce Committee from 1997 to 2001 and again from 2003 to 2005, he developed a sophisticated knowledge about the plumbing of the Internet. Sen McCain has taken free market positions on Internet-related regulation. In the Senate, he opposed Network Neutrality legislation that would have codified an Federal Communications Commission policy prohibiting telecom carriers from blocking or discriminating against Internet content generated by competing service providers that use incumbent networks. He has also long been an opponent of taxation of Internet sales. As chairman, Sen McCain oversaw the rise and fall of the 1996 Telecom Act's Unbundled Network Element Platform (UNE-P) provisions requiring incumbent phone companies to allow rivals access and regulated wholesale prices for use of their networks to provide Internet services. In 2002, while chairman, Sen McCain backed a broadband bill seeking to deregulate residential broadband services in a way that would drive many incumbent phone rivals out of business. The FCC, under McCain's watch, eliminated many of the statute's line-sharing and unbundling requirements. Observers may debate whether Sen McCain was on the right or wrong side of the battle over access and pricing for broadband services over incumbent phone lines, but they should acknowledge he was a key player in the key policy decisions at an important time in the Internet's development. In his way, McCain understands the business battles over the Internet, despite being befuddled by the emails and websites it enables.