September 2008

New Mexico Infrastructure Report Fails to Incorporate Broadband Access

As with other states seeking to promote the availability of high-speed Internet access in a broadband-centered world, New Mexico is struggling just to keep up. Despite boasting one of the world's premier centers for science and research at Los Alamos National Laboratory and experiencing a recent population boom, New Mexico remains far behind the rest of the country in broadband and digital deployment. According to a report by the Kauffman Foundation and the Information Technology and Innovation Foundation, the state ranks 46th in percentage of Internet users, 49th in e-government, and 36th in broadband telecommunications. New Mexico's deficit in broadband infrastructure is particularly glaring. According to Federal Communications Commission statistics, only 78% of New Mexicans have access to digital subscriber line (DSL) service and only 77% have access to cable modem service - well below the national averages of 82% and 96%, respectively. And the quality of service received when broadband connectivity is available is 15% slower than the national average, according to the Communications Workers of America's Speed Matters web site.

Colorado Innovation Council Seeks to Make Good on State's Promise of Better Broadband

The state of Colorado likes to see itself as an emerging technology hub. The Rocky Mountain state, which is currently hosting the Democratic National Convention in Denver, placed ninth in a recent "New Economy Index" that sought to benchmark indices of a knowledge-based economy. Many of the leading players in the cable and satellite industries hail from the state, which is home to its industry technology consortium CableLabs. Reinforced by its winter skiing and its cool summers, the state's high quality of life makes it a natural locale for many of industry-leading telecommunications conferences by the Aspen Institute, the Progress and Freedom Foundation, and Silicon Flatirons. If there is a dark cloud on the future of Colorado's technological progress, however, it is the limitation of rural broadband access. The same report that said Colorado was ninth for its tech economy ranked it 21st among states for its broadband telecommunications. (It was published by the Information Technology and Innovation Foundation and the Kauffman Foundation.) Another report, published in December 2005 by Broadband Properties Magazine, put Colorado in 20th place in broadband deployment, behind rural neighbors Nebraska and Kansas. State officials now say they are determined to do something about these low broadband rankings.

On Sept 8 Wilmington, North Carolina Goes Cold-Turkey Digital

At high noon on Sept 8, TV stations in Wilmington (NC) will pull the plug on full-power analog TV broadcasts. And while question marks remain, the principal players, from broadcasters to the FCC, to the Bush administration's chief telecom advisers and right down to the mayor of Wilmington, appear confident that they, and the market, are ready for a relatively pain-free switch. But for others, that very smoothness is cause for concern. No pain, no gain, they argue. A hassle-free switch to digital in Wilmington will not reveal the problems that could face the nation next February when analog shuts down and digital signals take over. So the question remains: Is this test really a test? Barry Goodstadt, senior VP of market research firm Centris, which will analyze what worked and what didn't in the coastal city of Wilmington, agrees with the chorus of constituencies believing there will be a relatively smooth transition. But that is not altogether a good thing. "Wilmington is not a high-risk area in terms of reception. It is very flat," he says, which means the test is a "softball" rather than one that would provide more useful information. "Sure, awareness is going to be very high. I'm sure of that. There is probably nobody there who hasn't heard about this," he says. Wilmington has a high penetration of cable and satellite viewing—about 93%. That left only about 10,000-15,000 viewers out of a market of 175,000 or so who relied only on analog over-the air broadcasting and would be most affected by the switch. And, since they are making the switch early, and voluntarily, the participating Wilmington stations involved -- WWAY (ABC), WSFX-TV (Fox), WECT (NBC), WILM-LP (CBS) and W51CW (Trinity Broadcasting) -- will still be allowed to air an analog signal for at least a few weeks to give a heads-up to viewers who may not have gotten the message. The market also has a bad-weather bailout plan that could delay the shutoff if Hurricane Gustav, or any other storm, is threatening the region.

Changes in the NTIA's Low-Power TV Digital-to-Analog Conversion Program

On October 29, 2007, the National Telecommunications and Information Administration (NTIA) published a notice in the Federal Register announcing the establishment of the Low-Power Television and Translator Digital-to-Analog Conversion Program (Conversion Program) and announcing $8 million in funds available for grants. NTIA has determined that the full funding amount is not necessary for the Conversion Program and herein announces the funds available for these grants to be $3.5 million. NTIA also announced certain changes in the application submission deadlines. The deadline for applications is February 17, 2009. However, NTIA will not be able to guarantee the availability of funds for those applications submitted (postmarked) after November 17, 2008.

Martin Has Eye On Cable Networks

Egged on by consumer groups and small cable operators, Federal Communications Commission Chairman Kevin Martin has the agency studying whether to prevent cable programmers from grouping channels in packages and then requiring their pay TV distributors to license either an entire package or nothing at all. Wholesale a la carte or bundling would mean, for example, that the industry's major programmers -- The Walt Disney Co., Viacom, Time Warner Inc., News Corp., NBC Universal -- would have to let cable operators and satellite providers purchase each channel on a standalone basis. Chairman Martin has said that wholesale bundling leads to higher retail cable rates because operators are required to license channels that they would prefer not to distribute -- a point repeatedly made by the American Cable Association, a trade group for small cable companies. At the same time, Chairman Martin has said that no one at the agency is working to develop wholesale a la carte rules. But few people believe that because Martin's staff continues to meet with proponents of new regulation.

Three Top Florida Papers To Share Content Starting Monday

The Miami Herald, the South Florida Sun-Sentinel and The Palm Beach Post announced content sharing plans. Editors will exchange routine news stories and feature articles starting on Monday -- while continuing to compete in most ways.

FCC Releases New Telephone Reports

Late last month, the Federal Communications Commission released five new reports on the telephone industry. Now you can impress friends, family and colleagues with your knowledge of telephone trends, subscribership, revenue, prices, and numbering utilization. As of March 2008, the telephone subscribership penetration rate in the US was 95.2%, an increase of 0.6% over the rate from March 2007; the penetration rate for households in income categories below $20,000 was at or below 94.2%, while the rate for households in income categories over $60,000 was at least 98.3%; and penetration rates ranged from a low of 91% in South Carolina to a high of 98.4% in Colorado.

Benton

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