February 2009

Will You Feel the Benefit of the Stimulus Package? Find Out Here

The American Recovery and Reinvestment Act of 2009 will try to rescue the economy with an unprecedented $787 billion package of government spending and tax cuts.

The bill includes $7.2 billion to expand broadband, with an emphasis on "unserved" and "underserved" communities such as rural areas. Within a year, the Federal Communications Commission must produce a "national broadband plan" including "a plan for use of broadband infrastructure and services in advancing consumer welfare, civic participation, public safety and homeland security, community development, health-care delivery, energy independence and efficiency, education, worker training, private-sector investment, entrepreneurial activity, job creation and economic growth, and other national purposes."
Winners: Telecom companies, media companies, others developing broadband-based content and services.
The score: A boost to anyone wanting to deliver high-bandwidth content, such as video, to households far and wide. Workers in rural areas will find it easier to get on the net.

DIGITAL TV
Congress allocated $650 million to pay for more coupons for digital-to-analog TV converter boxes and related educational/outreach efforts.

Winners: Michley Electronics' Tivax, LG Electronics' Zenith and other marketers of converter boxes; Amazon, RadioShack and other retailers.

The score: Government money had run out for $40 converter-box rebate coupons, so this will get the coupons flowing again. Mr. Obama, meanwhile, signed legislation putting off the nation's digital TV switchover until June 12.

CENSUS
The Census Bureau won $1 billion in additional money for the 2010 Census, some of which is meant to "increase targeted media purchases." Allocation includes "up to $250 million" for "partnership and outreach efforts to minority communities and hard-to-reach populations." That could mean more money for minority agencies and media.

Winners: Lead agency DraftFCB and media shop Initiative, both part of Interpublic Group; multicultural subcontractors including DraftFCB, GlobalHue, A to Sí, IW Group, G&G, Allied Media, Weber Shandwick, Jack Morton, Booz Allen Hamilton, Marcom Group and Zona Design.

The score: More money for promotion; potentially a more accurate census.

IBM eyes stimulus funds for broadband over power lines

IBM plans to take advantage of the economic stimulus package by offering Internet services over power lines to more rural consumers. The economic stimulus law signed by President Barack Obama included $2.5 billion for the Agricultural Department to expand broadband service in rural America. IBM said its venture with International Broadband Electric Communications (IBEC), a company that provides broadband over power line (BPL) services, had begun to sign up Internet customers in rural parts of Alabama, Indiana, Michigan and Virginia and that it hoped to access more government funds. IBEC venture's service is aimed at remote and sparsely populated areas where advanced Internet services are not available, meaning the only competition would be traditional dial-up services which are even slower. IBM said it did not know how much government funds it could receive but that the venture would proceed regardless, and that it expects broader Internet use to stimulate the economy and help create more business opportunities in the long run.

Stimulus crucial for "smart grid"

The electric power industry and manufacturers say $4.5 billion in the $787-billion U.S. economic stimulus package will give a crucial boost to "smart grids" that will help the nation save money and electricity. The stimulus measure, signed into law by President Barack Obama on Tuesday, provides matching funds over two years to encourage utilities to start work on smart grids. Smart grids combine special meters, wireless technology, sensors and software so customers can closely monitor energy use cut and back when the grid is stretched to its limit. Otherwise, utilities must build expensive, wasteful plants that are turned on when needed to prevent blackouts. Two-way meters also let utilities pinpoint power outages and respond far more quickly. Eventually a smart grid will also help prevent blackouts by better balancing electric resources.

Education snags $105.9B in stimulus package

The final $787 billion stimulus bill contains $105.9 billion for education, including $650 million for the federal Enhancing Education Through Technology (EETT) program. Although encouraged by an increase of more than double its current funding level, ed-tech advocates said they were disappointed EETT did not receive the $1 billion it was slated to receive in earlier drafts of the package. In past years, EETT has been repeatedly targeted for cuts. "The funding provides a much-needed down payment toward meeting President Obama's vision that all students receive the benefits of 21st-century learning environments, but the final level of investment falls short of funding in the House and Senate bills, and far short of what is needed by our students to compete in today's digital age," read a statement from the International Society for Technology in Education and the Consortium for School Networking.

The primary goal of the EETT program is to improve student achievement through the use of technology in elementary and secondary schools. Additional goals include helping all students become technologically literate by the end of the eighth grade and, through the integration of technology with both teacher training and curriculum development, establishing research-based instructional methods that can be widely implemented.

Local activities include the support of continuing, sustained professional development programs and public-private partnerships. Activities also include: the use of new or existing technologies to improve academic achievement; the acquisition of curricula that integrate technology and are designed to meet challenging state academic standards; the use of technology to increase parent involvement in schools; and the use of technology to collect, manage, and analyze data to enhance teaching and school improvement.

Forget universal broadband

[Commentary] Are companies really shunning the U.S. market because there's not enough broadband here? After all, the gap between our penetration numbers and Japan's is in rural America. Is that really the segment of the market that stands between us and the forefront of global technology innovation? Of the roughly 12% of American homes without broadband today, a third say they wouldn't buy broadband if they could. And of the 25% of Americans who don't use the Internet at all, at any speed, only 12% say it's due to lack of access. If weak demand is the problem, maybe we should be pushing broadband's benefits to rural Americans harder than we push the actual networks — maybe then rural America would do more of the pulling itself. We need to get them hooked on applications. Despite the historic importance of trains, there was never a call to bring railroad tracks to every American's doorstep. Railways were built in accordance with commercial demand, creating more demand along the way. If you didn't live near the tracks, it was up to you to bring yourself the rest of the way.

DTV coupon backlog seen gone within weeks

The National Telecommunications Information Administration says consumers should be able to receive new coupons within weeks to help defray the cost of converter boxes for the nationwide switch to digital television signals. With President Barack Obama's signature on the economic stimulus bill, the government can clear its coupon waiting list of some 4 million households within 2 to 3 weeks. The stimulus bill contains tens of millions of dollars needed to restart the coupon program which was a major reason cited by lawmakers and Obama in backing the digital transition delay, which has been years in planning. At $40 apiece for those coupons, NTIA would need $168 million and several weeks to get all those folks off the list. But NTIA will not get access to the money immediately. It will have to wait as much as a week to start clearing the backlog, according to an NTIA spokesperson, because the money has to go through the appropriations process before NTIA can get access to it. "We still need to go through the regular process of going to OMB and getting an account number," said the spokesperson. "I believe it will take a week, or less, after the bill is signed if it goes through the regular process." That would make it mid-March before the list is tidied up, or just about the same time (March 14) that stations that did not pull the plug on or before Feb. 17--there are 641 of those--can start doing so if they have let the FCC and viewers know first.

White House Unveils Recovery.gov

White House on Tuesday launched Recovery.gov -- a Web site that features information on how the $787 billion economic stimulus package is being spent along with tools to help citizens hold the government accountable. Issues surrounding the site's implementation and measures for success will likely arise as part of a Senate Homeland Security and Governmental Affairs Committee hearing planned for March 5. OMB Director Peter Orszag is expected to testify along with GAO Acting Comptroller General Eugene Dodaro and Phyllis Fong, chair of the Council of Inspectors General on Integrity and Efficiency. The issue is expected to gain traction in the House as well.

Obama Revokes Bush Executive Orders Concerning Regulatory Planning And Review

On January 30, President Barack Obama revoked Executive Order 13258 of February 26, 2002, and Executive Order 13422 of January 18, 2007, concerning regulatory planning and review, which amended Executive Order 12866 of September 30, 1993. EO 13258 eliminated the vice president's formal role in reviewing agency regulations. EO 13422 amended the Clinton-era executive order (12866) on regulatory review that agencies relied on for the first six years of Bush's presidency. EO 13422 further politicized the regulatory process and threatened to prevent regulatory agencies from setting new standards that protect the public. EO 13422 has been criticized because it: 1) gave agency "regulatory policy officers" the ability to scuttle proposed regulations without the input of the public or agency experts and 2) granted the White House Office of Information and Regulatory Affairs (OIRA) the power to review and edit agency guidance documents - a class which could include agency opinions, scientific documents, or memoranda and which, by definition, are nonbinding.

Regulation, Public Policy and Investment in Communications Infrastructure

Regulation and other forms of public policy toward infrastructure industries were and are designed to support the necessary large-scale investment. Throughout history, with few exceptions, rather pragmatic approaches guided policies. A more rigorous lens was only applied more recently although it often focused on narrow aspects of regulation. In contrast, this paper attempts to develop a broader, integrated framework to analyze the effects of regulatory and other public policy choices on sector investment. During the past decades, regulation has gradually abandoned instruments that allowed regulators to influence investment decisions directly. Presently used forms of wholesale regulation such as unbundling and network neutrality requirements work indirectly, creating complex and sometimes contradictory incentives for the affected stakeholders. Regulation cannot anymore "control" investment. Rather it functions as a "tuning variable" that influences the level and the structure of investment activity in various direct and indirect, often non-linear ways. Fiscal and monetary policy instruments also can be used to influence investment choices but they have their own advantages and disadvantages and do not work under all conditions. Due to the multi-faceted effects of regulatory measures, fiscal and monetary policy is preferable to regulatory measures to create short term economic stimulus. Whereas the overall effects of a combination of regulatory and other public policy measures on communications sector investment levels and structure are difficult to predict, basic guidelines for the design of a coherent approach can be specified.

Public Media 2.0: Dynamic, Engaged Publics

The report, based on four years of research, argues that multi-platform, participatory media will be central to democratic life in the years ahead. It also suggests that public broadcasting could play a central role if the medium is properly restructured and supported. Some key concepts about public media 2.0 include:

1) It will be crucial to an open, democratic society;

2) The core function is to generate publics around social issues;

3) It needs widely-shared standards and practices;

4) Impact measurements are crucial;

5) Public broadcasting could act as a national network, but only with restructuring; and

6) Public media 2.0 will need broad public mobilization for federal support.

"The people formerly known as the audience have reorganized themselves into networks," said Jessica Clark, director of the center's Future of Public Media Project. "That throws open the doors for what public media can be."

Clark coauthored the report with Pat Aufderheide, director of the Center for Social Media and professor at AU's School of Communication, which houses the Center. The report offers a glimpse of tomorrow by showing how experiments in public media 2.0 are emerging across sites and sectors—from political debates on Wikipedia, to environmental discussions in Second Life, to community-based media shared via mobile phones.

"Tomorrow's public media will be media made by, for, and with the public, but it won't happen by accident," said Aufderheide. "This report provides a map of opportunities and ways to make the most of them."