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  2. October 2008

October 2008

FCC to Reform Intercarrier Comp by November?

Can the FCC take a 7-year-old proposed rulemaking on intercarrier compensation and overhaul the system by November? Chairman Kevin Martin says he's going to try. The impetus stems from a federal appeals court mandate. By Nov. 5, the FCC must justify its reason for treating ISP-bound traffic as "information access." If the FCC doesn't meet the deadline, the court will override the agency's authority, wreaking havoc on any carrier terminating traffic to an ILEC, sources said. That's because different state rates suddenly would apply for traffic termination, rather than the across-the-board $.0007 per minute. The tangled intercarrier compensation regime is long overdue for reform. Some carriers have figured out how to make IXCs pay thousands, if not millions, of dollars per month through traffic pumping. Others avoid their obligation to pay by disguising their traffic so their peers can't charge them. Still others want interconnected VoIP providers to pay access charges. All of this bleeds over into the Universal Service Fund (USF) policy, too, complicating an already complex program.

Program to Help States Upgrade 9-1-1 Services

The Department of Transportation's National Highway Traffic Safety Administration (NHTSA) and the Department of Commerce's National Telecommunications and Information Administration (NTIA) today announced a proposal to make available more than $40 million in grants to help states and territories improve their 9-1-1 call centers. The grants were authorized by the ENHANCE 9-1-1 Act. All states, the District of Columbia, Puerto Rico and U.S. territories are eligible for the grants. Among other things, the funds will be used to implement technologies to deliver wireless 9-1-1 calls with automatic location information. The joint proposal, published in the Federal Register, spells out details of the proposed grant program, including the application and administrative requirements of the proposed rule. The funds will be awarded in fiscal year 2009. Interested parties will have 60 days to comment on the proposal.

California Gov Schwarzenegger signs bills preserving rural phone service

California Governor Arnold Schwarzenegger (R) has signed into a law a pair of bills by State Senator Patricia Wiggins (D - Santa Rosa) designed to maintain phone services to residents of rural and high-cost areas of California. On bill allows for the continued funding of a program paid for by all customers of home and cellular telephone services to protect rural and underserved areas of the state from outrageous phone bills, while the other continues funding for a grant program that provides residential telephone services and cellular coverage to people who are considered to be low-income and/or live in rural areas where no telephone services are currently offered.

Skype: We didn't know about security issues

Skype's president said that the company was largely unaware of a major security breach affecting Skype users in China. In a blog published Thursday, Josh Silverman, Skype's president, explained he did not realize that TOM-Skype, Skype's partner in China, was logging and storing users' instant messages that were deemed offensive by the Chinese government.

Craigslist founder criticizes telecoms for 'artificial' Network Neutrality debate

Craigslist.org founder Craig Newmark has found himself an unlikely advocate for career lobbyists. While lawmakers should embrace the online tools to make democracy more widespread, he said, industries like telecommunications have to play their part by steering away from deceitful lobbying practices. "There are some bad actors in the lobbying business, but the vast majority are just people trying to get a fair shake for their clients in the sausage factory," said Newmark, who belongs to boards for groups like the Sunlight Foundation, which advocates for government transparency. However, he said industries like telecom, finance, and oil often resort to using "unsavory" lobbying tactics such as fake grassroots -- or "Astroturf" -- campaigns. Some of those groups have taken aim at Google on issues like Network Neutrality. Newmark said the telecom industry's use of Astroturf groups creates an "artificial" conflict. Newmark said the Internet should play a greater role in lawmakers' interactions with citizens and foster a "networked grassroots democracy."

Congressmen finally allowed on YouTube

Members of Congress can finally use Web sites like YouTube, after committees in both the House and Senate adopted new rules allowing members to post content outside of the .gov domain, as long as it is for official purposes. The House Rules Committee approved the change for the House of Representatives on Thursday, while the Senate Rules and Administration Committee adopted the new rules on September 19. Sunlight Foundation program director John Wonderlich said the changes should "drastically improve members' ability to connect with their constituents online." "In the arms race of online political communications, Members and staffers have had one arm tied behind their backs, until now," he said.

NY Attorney General Intends to Sue Arbitron Over PPM

New York Attorney General Andrew Cuomo (D) said Oct 3 that he will file a suit against Arbitron to stop the company's rollout of portable people meters in the Empire State. He alleges that Arbitron has engaged in "unlawful and deceptive acts and practices" in connection with "the marketing and planned commercialization in New York of the Portable People Meter methodology." Arbitron plans to commercialize the PPM in New York and seven other markets, including Los Angeles, Chicago, and San Francisco on Oct 8.

Annenberg scholars evaluate political differences on technology

The Annenberg Research Network on International Communication (ARNIC) compiled a list of the main presidential candidates' views on hot-button political topics about media and technology such as media ownership/consolidation and network neutrality. The report, titled Campaign 2008: USC Annenberg Technology and Media Policy Watch, was directed by third-year Ph.D. student Russell Newman and communication professor Jonathan Taplin.

Comparing the Presidential Candidates' Technology Platforms

Both Democrat Barack Obama and Republican John McCain have developed detailed policy platforms for technology. TIA has prepared this issue-by-issue comparison as a quick guide to how the candidates differ on key issues.

Broadband and Technology Investments: Policy Options for 2009


Progressive States Network

Broadband - high-speed Internet - has the potential to transform the way we live, learn, work and play, and the power to be a galvanizing political tool, uniting progressives across the nation. Combined with investments in digital inclusion programs that are needed to prepare the next generation of workers, and public investments in local technology, states can incorporate technological advancement as a key part of a progressive economic growth agenda.

High-speed Internet has been one of the most transformative communication technologies in human history; just as important as other traditional public goods or infrastructure investments. It is no longer a luxury—but a public necessity. With universal and affordable high-speed Internet, states can leverage technology as an economic development tool and a means of providing better healthcare services, smarter environmental policies, and greater educational opportunities. As this packet will demonstrate, promoting increased access to and adoption of high-speed Internet, will not only provide many societal benefits, but can unite economic development experts, healthcare advocates, environmentalist, labor unions and educators.

Unfortunately, nearly 20 million Americans today do not have access to a single high-speed Internet provider, and even more are currently priced out of the market. In fact, only 50 percent of American households subscribe to broadband Internet. This number shows how unprepared Americans are for the technology age in which they live. A closer look at the numbers reveals that access and use of the Internet is heavily weighted toward the upper echelons of society. Certain demographics have effectively been left out of the digital renaissance. A study conducted in 2007 found that geography, income, ethnicity, education and age all impact high-speed Internet adoption.

  • Geographic Divide: Broadband Internet adoption in rural areas lags behind adoption in urban and suburban communities. Only 39% of rural households report having high-speed Internet.
  • Economic Divide: Only 35% of homes with less than $50,000 in annual income have high-speed Internet, while 76% of households earning more than $50,000 per year are connected.
  • Racial / Ethnical Divide: High-speed Internet adoption varies depending on race. 55% of non-Hispanic whites have high-speed Internet access at home, while only 40% of racial and ethnic minorities do.

While the U.S. has struggled to combat our nation's digital divide, other countries have instituted serious deployment plans and regulatory schemes to ensure wide-spread adoption of broadband Internet. Today, our European and Asian counterparts greatly outpace us in development of high-speed Internet infrastructure. For the second year running, the U.S. ranked 15th among the 30 members of the Organization for Economic Cooperation & Development in terms of high-speed Internet adoption. Additionally, U.S. broadband Internet providers often charge higher prices for slower connection than providers in many developed nations.

The lack of effective federal government action to date should compel states to bridge the digital divide. States need to create policies to promote access to and utilization of high-speed Internet and related applications. Technology is our greatest partner and asset as we work to conquer the challenges that threaten our future. Universal affordable high-speed Internet:

  • Can help rejuvenate a lagging economy: Spurs economic development, increases economic equality and increased job opportunities.
  • Provides increased access to basic services: Supports the merging of technology and basic services to provide increased accessibility to basic services, and for certain residents, better quality in areas such as healthcare, e-government, and education.
  • Can be leveraged to reduce our carbon footprint and energy use: Permits more efficient energy use and can be an essential component of many environmentally friendly policies.
  • Promotes a diversity of voices: Provides more accessible media and creative outlets to all communities.
  • Increases democracy: High-speed Internet allows for a more participatory and efficient democratic system. Individuals with broadband find it easier to research candidates and can review local and state hearings and agency meetings.

The key to advancing the widespread adoption of high-speed Internet in the states is to promote universal, affordable high-speed Internet, fund digital inclusion programs, educate leaders and the public on how to utilize high-speed Internet for economic and social benefits, and to support local investment in technology based growth.

  • Universal, Affordable High-speed Internet Policies: To compete on a global level and to ensure equity of services to citizens, states should promote universal affordable high-speed Internet. Without universal and affordable high-speed Internet, a state's ability to leverage technology as an economic development tool and a means of providing better healthcare services, smarter environmental policies and greater educational opportunities, is severely limited. The first step states need to take to provide affordable high-speed Internet for all is to determine where high-speed Internet access is lacking. Once under-served populations are determined, states can develop technology councils to plan the strategic deployment of high-speed Internet, capable of supporting advanced applications.
  • Increasing Technology Literacy Equalizes Opportunities: In every state there exists a digital divide between those who have access to high-speed Internet and those who do not. The digital divide, however, is not only a function of lacking access to high-speed Internet, but also lacking the necessary technology literacy skills to function in our 21st century digital world. For example, increasingly more jobs in both the service and manufacturing sectors, in particular higher paying jobs, require digital skills. Combating the digital divide is a key component to combating the growing economic inequality in this country. Therefore, states must compliment high-speed Internet deployment by supporting digital education programs, funding community technology centers, and establishing computer disbursement programs. Such programs help to ensure that residents of all ethnicities, social economic backgrounds, and ages understand how to be producers for as well as consumers of this 21st century economy.
  • High-speed Internet Rejuvenates the Economy and Promotes Better Healthcare, Environmental Policies and Educational Opportunities: High-speed Internet infrastructure is the key to states rejuvenating and sustaining their economy. Universal and affordable high-speed Internet enables states to utilize technology to provide better access to healthcare, promote energy efficient and environmentally friendly policies, and provide increased educational opportunities to all. For example, the utilization of telehealth technology has the potential to deliver huge cost savings to America's health care system--over $300 billion annually. And this is just one sliver of the savings pie. It is estimated that widespread adoption of high-speed Internet will add $134 billion to the U.S. economy annually and create 1.2 million new jobs per year.
  • Local Investments for Technology-Based Growth: State governments manage trillions of dollars in financial assets. This money can be a key tool to promote technology innovation and economic equity. Linking state-controlled financial capital with university innovation and local entrepreneurial energy can not only jumpstart job creation that will accompany high-speed Internet deployment, but can also be used to revitalize economically abandoned communities most in need of jobs.

The benefits of high-speed Internet, laid out in this packet, are clear and overwhelming. Yet, to achieve wide-spread adoption of high-speed Internet, resources must be provided from public funds or public/private partnerships. Despite claims by telecommunication providers that the market will deliver these benefits to everyone, the reality is that state leaders need to leverage funding and public rights of ways as a means to bring build-out to under-served and un-served areas, provide affordable access for low-income families, and to establish regulatory oversight to protect consumer rights. Further, state leaders need to make sure that all of their residents are provided with both the digital skills and capital investments needed to take full advantage of this new communication technology.

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