October 2008

One million UK consumers have exceeded or come close to exceeding their broadband usage limit, research from consumer group uSwitch has found. So-called usage caps, where Internet service providers limit the amount of bandwidth users can have in any given month, are standard practice. But the majority of users are still confused by the bandwidth curbs imposed on them, the research found. For some who go over their limit the penalty is disconnection.

Citizens Against Government Waste named Federal Communications Commission Chairman Kevin Martin its October Porker of the Month for using FCC funds to sponsor a NASCAR driver from his home state. The FCC will pay $355,000 to sponsor David Gilliland's number 38 car, owned by Yates Racing, for three races, in order to raise awareness about the upcoming switch to digital television (DTV) in February. Even though the commission has inundated networks with paid announcements for months, Martin considered it necessary to use additional taxpayer dollars to pay for the car and driver to bear slogans such as "Is Your TV ready for Digital?" "This doesn't seem like the most efficient use of resources," admitted FCC Commissioner Jonathan Adelstein. While NASCAR is the biggest spectator sport in the country, it seems absurd to spend taxpayer money for three races only four months before the switch, following months of alternative advertising. Chairman Martin not only chose to misuse government funds, but did so without consulting all of the FCC commissioners. Not only does this expenditure show poor judgment, the underlying motivation for the contract has also raised eyebrows. Martin is generally expected to be replaced as FCC Chairman by the next president, after which he may attempt to launch a political career in his home state of North Carolina. Indeed, some have suggested that Martin's decision to move forward with this sponsorship is linked to his political future in the state. Gilliland is based in North Carolina, while NASCAR maintains offices in four North Carolina cities. Additionally, Martin chose Wilmington, North Carolina as the test site for the switch to DTV. Considering Martin's ability to sequester taxpayer money for his prospective constituents, he is well on his way to becoming a successful legislative porker.

[Commentary] One of Washington's most powerful corporate lobbies is at it again. Raising a dust cloud of lies in a last-ditch effort to stop new technology that could better the lives of millions. For more than five years, now, the television broadcast lobby has tried to deny the American public access to white spaces — unused airwaves that sit vacant between TV channels. The National Association of Broadcasters (NAB) is clinging to horse-and-buggy notions about technology to protect their government-granted broadcast domains from advances that would let us share the air. "Opposing innovation is a well-worn page in the broadcasters' playbook," writes Jake Ward of the Wireless Innovation Alliance. "They opposed satellite radio, cable TV, and even the VCR, but the newest claims are outlandish even for NAB." The NAB believes that a mix of lies and lobbyists will win out over the facts in Washington. The sad truth is that they may be right: Many DC decision-makers simply lack the bandwidth to look into what's already known about white spaces technology. Instead, they rely upon industry lackeys who come knocking with tales of interference and disruption. The NAB is now trying to stop the FCC from following good science with good policies. Unless our leaders cut through the NAB static, we could be kept from using the airwaves to fill one of the biggest holes in our national infrastructure.

The billionaire founder of eBay, Pierre Omidyar, is expanding his philanthropic investment firm, as some of the biggest private foundations continue to weather the growing economic turmoil. Omidyar Network, during the next year will increase its total investments and donations. The group also will add two new areas of investment and create six new management positions, filling them with executives from companies such as eBay, Hewlett-Packard, J.P. Morgan Chase and a philanthropic arm of the British Broadcasting Corp. Under its plans for the next year, the Omidyar organization plans to boost outlays and retool around two broad areas: one providing "access to capital" that includes investments into financial services for the poor, and another it calls "media, markets and transparency," which will invest in technologies that can help improve transparency in government, the media and other areas. Omidyar will also increase to between $5 million and $7 million the amount of money it donates or invests in each organization. That is an increase from an average of $1 million each in 2006 and is part of a strategy to make fewer but bigger bets, Omidyar officials said. Examples of Omidyar investments include Sunlight Foundation, a nonprofit that invests in ways to use the Internet to improve government transparency, and Endeavor, a nonprofit that helps entrepreneurs in developing countries. Future investments might include online services for rating the effectiveness of nonprofit organizations, said Matt Halprin, an Omidyar Network partner recently hired from eBay, where he was a vice president.