October 2008

Whether McCain or Obama, Tech Policy Is Bound to Change

Technology policy is not center stage in this year's presidential campaign, much as the competitive community might wish otherwise. Each candidate - Sen John McCain (R-AZ) and Barack Obama (D-IL) — is consumed with weightier subjects, namely the economy and Iraq, analysts and industry insiders say. That's not to say technology isn't on the nominees' minds. Sen Obama released his tech treatise almost a year ago, and the use of the Internet and text messaging has been foundational to his crusade. Sen McCain, meanwhile, published his long-awaited tech views on Aug 14, even as he admitted to eschewing e-mail and not knowing how to surf the World Wide Web. Still, he's leaning on his status as a member and former chairman of the Senate Commerce Committee, which oversees telecom and technology, to speak for him. Meanwhile, Sen Obama, while viewed as more favorable toward CLECs and competition than his opponent, doesn't have tech-focused public policy experience. He's counting on key advisers to strengthen his credibility. Even so, communications executives and even some associations fear that McCain and Obama don't fully understand the importance of the battles looming on the technology horizon. The past four years have been consumed with megamergers, discontent with FCC leadership, warrantless wiretapping and budding fights over net neutrality. Those subjects are moving to the next level and how they play out will all depend on who takes the White House. The takeaway is this: If McCain wins, expect the status quo of the past eight years. If Obama wins, expect more government input.

Palin's Pledges of Government Openness Marred by Secrets

Gov Sarah Palin's promise for a new era of government openness as the reform governor of Alaska started to crack even before Sen John McCain's presidential campaign built a wall of protectiveness around her. Gov Palin (R-Alaska) was elected nearly two years ago with splashy moves like publishing the state spending checkbook online. She kept a campaign pledge to allow the public to view online communications between state officials and potential bidders on a major gas pipeline, a contrast to her predecessor. But her administration has claimed broad exceptions to Alaska's freedom of information rules to keep government e-mails secret, and it's shown reluctance to disclose documents about sensitive topics, ranging from polar bears to policy issues. And her state's online checkbook is limited in its detail. Disclosures about private e-mail accounts used by Gov Palin and her top aides have raised questions about whether they were trying to evade disclosure under the state's public records law. Her aides have denied this.

Obama, McCain Back Public Re-use Of Debate Footage

Sens Barack Obama (D-IL) and John McCain (R-AZ) are urging the TV networks and Presidential Debate Commission to allow debate footage to be distributed and used freely on the Internet and to allow the public more input on debate questions. The Open Debate Coalition, comprising groups from both sides of the political spectrum, had asked the presidential candidates in letters last week to pledge to hold more Internet-friendly debates, including requiring media companies to release rights to video footage. That includes ground rules that media companies make debate video freely available for sharing, blogging and posting. Coalition members include craigslist founder Craig Newmark, David Kralik of Newt Gingrich's American Solutions, Eli Pariser of MoveOn.org, Republican strategist Mandy Finn, Arianna Huffington and Josh Silver of Free Press.

How To Win The White House Using Online Advertising

[Commentary] While recent politics have been intoxicating, the candidates' online marketing efforts have been weak and at times, appalling. In an age of technological capabilities to get real messages, not simply advertisements, to the right person at the right time with a reasonable cost, why are our political campaigns so ineffective? The reasons are an over reliance on YouTube and Facebook mini-sites, weak marketing creativity and an overall lack of sophistication in online advertising tools. Shockingly, studies show that voters don't actually know the candidates' positions on key issues and don't seek this information out on their own. The Internet is optimized to solve these problems and a consistent, committed online marketing effort would significantly impact swing state voters, undecided voters, voter registration, fundraising and volunteerism. (Sacerdoti is the CEO and founder of BrightRoll, a video advertising network.)

Analysts cut 2009 cell phone growth estimates

The global cell phone market should grow at much slower-than-expected rates next year as consumers put off buying new devices due to deepening economic concerns, according to forecasts from analysts. While industry executives often say cell phones are the last thing consumers will give up to save money, analysts are now citing lengthening phone replacement cycles and weakening economies around the world for their weaker sales estimates. UBS analyst Maynard Um halved his forecast for 2009 global handset growth to 3 percent from 6 percent, pointing to particular weakness in Europe and North America.

Verizon says $28.1B buyout of Alltel on track

Verizon Wireless says it is moving forward with plans to acquire Alltel Corp. for $28.1 billion, although the country's financial climate has worsened since the companies reached an agreement four months ago. Verizon maintains that the deal, which would make it the largest wireless carrier in the United States, is still on track to close by year's end. But a major ratings firm that evaluates companies' financial strength for world credit markets is not so sure. "Considering the size of this deal, it would be surprising that Verizon would enter something with such significant risk that it really threatens to preclude this deal from closing," said Bill Densmore of New York-based Fitch Ratings.

House Panel Ratchets Up Scrutiny of FCC's Martin

A House Commerce Committee panel is readying a report expected to question whether Federal Communications Commission Chairman Kevin Martin went too far in keeping FCC decisions and policymaking to a close-knit group of subordinates. Since last December, the committee's Oversight and Investigations subcommitte, headed by Chairman Bart Stupak (D-MI), has been examining Chairman Martin's management in the wake of complaints, some made publicly by the cable industry and by other Commissioners. Most of the public complaints were that Chairman Martin kept a tight rein on data essential to decisions — including one to expand the FCC's oversight of cable — until the last minute, making it difficult for other Commissioners and the cable industry to weigh in or rebut. In several letters to Chairman Martin, the panel has stated that it has also heard private complaints from FCC staffers that Martin has made it difficult to do their jobs. There also have been complaints that the FCC doesn't follow basic processes of open government, disclosing few details about items Commissioners vote on before the vote is over, essentially preventing public input.

Martin Fears Coupon Program Lacks Funds

Federal Communications Commission Chairman Kevin Martin is concerned that a $1.5 billion digital TV converter box program run by the US Commerce Department could exhaust its funding, leaving consumers in the lurch next February 17 when analog TV signals are shut off. "While I do not have access to NTIA's projections and detailed analyses, I am concerned that the total funding required to satisfy demand may prove to be insufficient," Chairman Martin said in letters to Commerce Committee Chairman John Dingell (D-MI) and House Telecommunications and the Internet Subcommittee chairman Rep Edward Markey (D-MA). Martin's letter clashes with recent congressional testimony by Assisting Commerce Secretary and NTIA director Meredith Attwell Baker. The program, she testified, won't run out of money; in fact, she said it will likely return more than $300 million to the US Treasury, based on coupon redemption rates.

FCC Grants 30-Day Extension For Cross-Ownership Filings

The Federal Communications Commission has granted a group of broadcasters a 30-day extension on the Oct 7 deadline for filing amendments to their pending requests for a waiver of the FCC's new adjusted newspaper-broadcast crossownership rule, which the Commission says went into effect July 9. The broadcasters were scheduled to buttress their cases for the combos with information, but want an extension of the deadline until 90 days after a federal court rules on a number of challenges to that rule change, a decision that likely won't come for many months. The FCC gave them another 30 days while it considers the request for the longer extension. The waiver requests predated the rule change and all include combinations of multiple stations and/or newspapers that the FCC said would not have been appropriate to grant "across-the-board," but would instead look at them on a case-by-case basis using the new public interest standards it was applying for requests for newspaper-broadcast combos per the changed rules. Those include showings of impact on diversity of independent voices, particularly news and information. In their request not to have to file the additional information necessary for that case-by-case review, the broadcasters argued that it was a time-intensive process and that, additionally, the uncertain legal status of the rules leaves unclear "precisely what criteria the Commission ultimately will use to conduct waiver analyses and whether it will be able to apply those factors with reasonable certainty."

Nexstar Sets Up Little Rock Duop

Nexstar has agreed to buy MyNetworkTV outlet KWBF Little Rock from Equity Broadcasting Corp. for $4 million, setting up a duopoly with Nexstar's NBC outlet KARK. Nexstar President/CEO Perry Sook said the duopoly strategy is key to Nexstar's growth. Equity has sold a number of media properties amidst financial woes. The transaction, expected to close the first half of next year, is subject to FCC approval.