September 2008

MySpace Music launch disappoints excluded indie labels

The launch of MySpace Music ran into controversy on Thursday after the leading independent music trade body complained that its small music label members had been shut out and treated like second class citizens. The new music site opened shop with millions of free songs for streaming and paid downloads, but without agreements covering hundreds of labels representing well-known artists like Franz Ferdinand, Tom Waits, Arctic Monkeys and Bjork. MySpace Music is a joint venture between News Corp's MySpace and the four major music companies: Vivendi's Universal Music Group, Sony BMG Music, Warner Music Group and EMI Music.

Justice Talks With Rivals, Clients of Yahoo, Google

Justice Department staff reviewing Google Inc.'s online-advertising deal with Yahoo Inc. met this week with customers and competitors and scheduled a final round of meetings with the two companies next week, amid signs the government may be preparing to recommend an antitrust challenge to the deal. Thomas Barnett, assistant attorney general for antitrust, hasn't made a final decision and still could allow the deal to proceed. But he recently hired a special counsel, the veteran litigator and former Walt Disney Co. Vice Chairman Sanford Litvack. Litvack has been asked to review evidence and build a case if a decision is made to challenge the deal.

NBC says local TV profoundly affected by downturn

The US economic downturn has had a severe effect on broadcaster NBC's local television stations but the company has not yet seen an advertising slowdown at a national level, Jeff Zucker said.

EC call for 'universal' broadband

Brussels is considering making broadband access available for all. The fast growth of broadband has led the European Commission to bring forward a review of the basic telecoms services Europeans can expect. Current statistics suggest about 36% of households in EU member nations have high-speed net access. When a majority of EU citizens are using a telecoms service, EC rules dictate that it becomes one every European should be able to enjoy. The EC's Universal Service Obligations (USO) demand that all citizens who want them should be able to get access to basic telephone services. It covers the production of a telephone directory, availability of payphones, specific measures for people with disabilities or those on low incomes and fixed phone access for local, national and international voice calls. The obligations also include a clause demanding that the fixed line be of sufficient quality to "permit functional Internet access". In the UK this has been interpreted to mean a line that can support a dial-up speed of 28.8 kilobits per second.

Broadband and Privacy Hearing recap

On Thursday, the Senate Commerce Committee held a hearing to examine broadband provider practices with respect to consumer privacy. Senator Kay Bailey Hutchison (R-TX), Ranking Member on the Committee, called for increased transparency and disclosure for online advertising. Public Knowledge President and Co-Founder Gigi B. Sohn warned the Committee of the privacy intrusion that occurs when Internet Service Providers (ISPs) inspect detailed customer information using a technique called Deep Packet Inspection (DPI). She described DPI as: "To put it simply, Deep Packet Inspection is the Internet equivalent of the postal service reading your mail. They might be reading your mail for any number of reasons, but the fact remains that your mail is being read by the people whose job it is to deliver it." Sohn outlined the following principles a solution should have. ISPs must ensure that: 1) the purpose of the use of customer data is one which can be consistent with consumers' privacy expectations; 2) the amount and type of data collected is narrowly tailored to the proposed use, and that the data is not kept or disseminated to third parties past what is necessary to that use; and 3) customers have access to and actually receive adequate information about the proposed use, and have affirmatively and actively consented to any practices which could violate customers' expectations of privacy. Representatives of AT&T, Verizon Communications, and Time Warner Cable urged committee members to forgo passing new laws to regulate the use of targeted online advertising, instead advocating for a self-regulation of the industry to keep consumers' Web surfing habits secure and private.

Consumer group asks Senator to intervene in Google-Yahoo deal

The Center for Digital Democracy has written Senate Antitrust Subcommittee Chairman Herb Kohl (D-WI) asking him to call on the Department of Justice to oppose the partnership between the two companies, or at a minimum establish "meaningful safeguards" to the arrangement. CDD wants Chairman Kohl to press antitrust regulators to address potential privacy issues arising out of the search advertising partnership, as well as concerns about the deal reducing competition in the market. CDD cited concerns that the transaction may undermine competition and could ultimately reduce payments to newspaper publishers, which receive revenue from the two companies' online search ads and related services.
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House Democrats Outline DTV Actions for FCC

In a letter to Federal Communications Commission Chairman Kevin Martin, House Commerce Committee Chairman John Dingell (D-MI) and Telecommunications & Internet Subcommittee Chairman Ed Markey (D-MA) said they and 10 other House members were asking the FCC to: 1) Establish a public/private/nonprofit-sector information campaign that focuses on the need for new antennas or adjustments to existing antennas to receive digital-TV broadcast signals; 2) Encourage Americans to act now to buy and install a DTV converter box, test the reception and then take action to resolve any problems as soon as possible; 3) Update information on the FCC's Web site and other related government DTV Web sites to include in an obvious, accessible location a clear explanation of antenna matters; and 4) Expand the FCC's call center, especially in the weeks immediately preceding the transition, to address questions concerning antenna matters.

Legislation would force roaming in rural areas

The House Oversight and Reform Committee Henry Waxman (D-CA) introduced legislation to require telecom recipients of rural universal-service funds to provide automatic roaming on just and reasonable terms to wireless carriers, adding a new dynamic to a raucous roaming debate that until now has played out almost exclusively at the Federal Communications Commission. The bill would attach the automatic roaming obligation to any affiliate of a telecom carrier that receives high-cost USF subsidies six months after the legislation is signed into law. The measure does not address data roaming, a hot-button component of the roaming debate at the FCC. Moreover, the bill leaves to the FCC the job of resolving roaming disputes between telecom carriers and steers clear of roaming rate regulation. Waxman's bill, the Universal Roaming Act of 2008, has been referred to the House Commerce Committee. Further action on the bill is not expected until next year.

FCC revives emergency communications plan

The Federal Communications Commission approved a new framework for the creation of a nationwide emergency communications network Thursday amid concerns that the ongoing economic crisis may make it difficult to attract investors. This is the agency's second attempt to create a set of rules for the network, which would use public airwaves and private money. The first attempt flopped earlier this year when it failed to attract a bidder. The new framework includes more detail and makes the plan more attractive to private companies in several areas. The proposed network would be used by police, firefighters and other emergency crews responding to disasters or terrorist attacks. The basic concept is unchanged. The agency would auction a swath of airwaves - made available thanks to the transition to digital broadcasting - to a private bidder. That spectrum would be combined with a roughly equal portion of airwaves controlled by a public safety trust. The private investor would build a wireless network and lease access to emergency responders while selling wireless service to commercial users for profit.

FCC Announces Tentative Agenda for October 15th Open Meeting

Federal Communications Commission Chairman Kevin Martin has circulated a number of items for consideration by his fellow FCC Commissioners as part of the tentative agenda for the next open meeting scheduled for Wednesday, October 15, 2008. These items include: 1) Low Power Television Digital Transition; 2) 800 MHz Rebanding Transition; 3) the AT&T/BellSouth Merger Order; and 4) the Satellite Competition Report.