January 2009

Copps Responds to McDowell on FCC Reform

In a letter to Federal Communications Commission colleague Robert McDowell, FCC Chairman Michael Copps thanked McDowell for his enthusiasm for FCC reform and, especially, updating the agency's IT system and website. Chairman Copps said construction of a more user-friendly digital television web site could help facilitate the DTV transition. As chairman, Copps said he will try to schedule all FCC open meetings as near as possible to the first Thursday of each month. Chairman Copps passed on Commissioner McDowell's proposals to revisit the agency's strategic plan and conduct "very extensive Commission audits"; he said that those are matters best handled by the next permanent FCC chair.

Commissioner McDowell At The Media Institute Luncheon

Federal Communications Commission member Robert McDowell spoke at The Media Institute on Wednesday warning that re-imposition of the Fairness Doctrine could undermine the justification for existing localism and children's TV regulations, and could be used against public radio. He spoke at length about the doctrine's origins and its use by both Democrats and Republicans against their opponents. He said he did not know whether recent calls for its return would bear fruit, but felt it was a good time to talk to his audience--of media executives, lobbyists, journalists and others--about its creation, its historical abuses, and the legal difficulties involved with restoring it and trying to enforce it. The fairness doctrine, which was scrapped by the FCC in 1987, required broadcasters to air both sides of controversial issues. He suggested the doctrine could be woven into the fabric of policy initiatives with names like localism, diversity or network neutrality.

The tangled web of universal broadband

[Commentary] Universal broadband: Love the idea, but fear the devil is in the details: who is going to pay, what they're paying for, how the money is to be collected, and who's going to build out the infrastructure. House and Senate versions of the stimulus bill differ. The House bill proposes an investment of roughly $6 billion, while the Senate bill is for $8 billion; and the House bill earmarks roughly half of the funds to be administered by the Rural Utility Service. Both bills call for "net neutrality" requirements for infrastructure providers. Then there's the open question of what, if any, role the Universal Service Fund will play.

As the market tumbles, cyberthieves log on

Cybercriminals have launched a massive new wave of Internet-based schemes to steal personal data and carry out financial scams in an effort to take advantage of the fear and confusion created by tumbling financial markets, security specialists say. The schemes — often involving online promotions touting fake computer virus protection, get-rich scams and funny or lurid videos — already were rising last fall when financial markets took a dive. With consumers around the world panicking, the number of scams on the Web soared. The number of malicious programs circulating on the Internet tripled to more than 31,000 a day in mid-September, coinciding with the sudden collapse of the U.S. financial sector, according to Panda Security, an Internet security firm.

Consumer Interest In Paid Internet Content Wanes: Deloitte Consulting

consumer interest in paying for content via the Internet has softened significantly in the last year, according to research on global consumer behavior done annually by Deloitte Consulting. During last year's iteration, 37% of respondents indicated that they were inclined to pay for content, but that ratio dropped to 26% in this year's survey.

House Passes Obama's Stimulus Package

The House voted, 244-188, on Wednesday evening for President Obama's package of federal tax cuts and spending worth $819 billion and meant to jump-start the economy out of its worst crisis in decades. Before voting on President Obama's plan, the House rejected a stimulus measure offered by Republican members that focused more on tax cuts. The vote against that measure was 266 to 170, almost entirely on party lines. The Senate, where the Democrats' advantage was also increased by the November elections, is expected to debate economic stimulus measures next week. Considerable public debate and private negotiations could lie ahead, given differences between the White House and Congress, and Democrats and Republicans.

Senate Finance Committee Marks-up Stimulus Bill

On Tuesday, the Senate Committee on Finance approved by a vote of 14-9 a package of approximately $522 billion in job creating tax cuts, incentives, and investments in the nation's economy, for inclusion in the American Recovery and Reinvestment Act of 2009. Bipartisan amendments were also accepted into the legislation prior to the markup including tax credits for broadband technology investment in rural and underserved areas to spur jobs and economic opportunities. Sen Jay Rockefeller (D-WV) said he successfully fought to include broadband tax incentives in the economic recovery legislation for companies that make technology infrastructure investments in areas that need it the most. Rockefeller offered an amendment, which was accepted by the Senate Finance Committee, to the stimulus bill that establishes a 10 percent tax credit for investments in current-generation broadband infrastructure in rural and underserved areas; a 20 percent credit for current-generation broadband in areas that have no access at all now; and, a 20 percent tax credit for next-generation broadband infrastructure (i.e., even higher speeds), which results in faster, more reliable connections. In addition, Senator Rockefeller worked with the Senate Appropriations Committee and the Obama administration to include $9 billion in that committee's version of the legislation for the National Telecommunications and Information Administration (NTIA) to improve broadband deployment. With this funding, the Appropriations bill re-creates the Broadband Technology Opportunities Program in the NTIA to distribute grants to encourage deployment in areas of need, and fully funds the Broadband Data Improvement Act, which provides funding to state and public-private partnerships to map broadband deployment across the country. Fifty percent of the total funding is dedicated to rural areas.

Senate Committees Approve Portions of Economic Stimulus Package With Funds for Health Care

The Senate Appropriations Committee on Tuesday approved the $365 billion portion of an $825 billion economic stimulus package over which the committee has jurisdiction that includes funds for health care. Prior to passage, the committee made a few revisions to the $5 billion health information technology portion of the stimulus package. Hospitals that have adopted health care IT could receive loans to help them meet federal privacy and compatibility standards. The portion of the stimulus package approved by the committee includes almost the same privacy standards for electronic health records as the House version of the package. The Senate Finance Committee on Tuesday also approved a portion of the economic stimulus package over which the committee has jurisdiction that includes $18 billion for health care IT. In related news, the Senate Judiciary Committee on Tuesday heard testimony on the debate over privacy standards for EHRs included in the economic stimulus package. number of health care experts said that strong privacy standards could limit the ability of providers to exchange information and endanger the lives of patients as a result. However, others said that strong privacy standards are needed to obtain the trust of patients.

DTV Delay Bill Delayed by House Republicans

The House Wednesday failed to follow the Senate's lead and pass a digital television transition date-change bill. The vote was 258 to 168 in favor of changing the date, but under House expedited rules, a 2/3 majority was required for approval. The House had debated the bill Tuesday night, with a parade of Republicans in opposition and only House Telecommunications & Internet Subcommittee Chairman Rick Boucher(D-VA) holding down the fort for the bill's proponents. The House Commerce Committee's ranking member, Joe Barton (R-TX), is dead set against moving the date, calling it a potential disaster and saying the $650 million being set aside for reissued coupons for millions of people was a pot of money in search of a problem. It didn't help that Republican leadership put out a policy statement Tuesday saying "House Republicans oppose any further delay in the deadline." Missouri Republican Rep. Roy Blunt said his vote against the DTV bill was primarily about public safety. "Every day that goes by without this transition is another day that our firefighters, policemen and EMTs cannot effectively communicate," he said. Reps Joe Barton (R-TX) and Cliff Stearns (R-FL) wrote a letter to House Speaker Nancy Pelosi (D-CA) promoting their solution to the digital television woes. Their bill would free up $250 million more in funds and preclude the need for $650 million in coupon and DTV education funds that was put in the economic stimulus package.

High-Tech Execs Meet With Obama

A handful of high-tech executives were among the business leaders from across industries who met with President Barack Obama on Wednesday morning. Technology CEO Council members Sam Palmisano of IBM, Greg Brown of Motorola, Steven Appleton of Micron and Mike Splinter from Applied Materials were at the table, talking about the pending economic stimulus plan. Google CEO Eric Schmidt, who served as an economic adviser to Obama on his transition team, was also at the meeting. President Obama told reporters, "Their ideas and their concerns have helped to shape our recovery package and I'm grateful that they are here today to talk about why it's so important that we act and act swiftly in order to get this economy back on track."

Benton

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