May 2009

Tom Vilsack: Leading 'an Everyday, Every-Way' USDA

Agriculture Secretary Tom Vilsack wants to make one thing clear, and it's that his agency is not all about farming all the time. Rather, the USDA touches on just about every critical issue affecting the United States and the globe -- including broadband deployment: "As we go out to rural communities, we are talking to them about the stimulus program, the Recovery and Reinvestment Act and what it is basically helping to do in rural America. We talk about the fact that there are resources for broadband, expansion of broadband. There are resources for new housing opportunities, resources to deal with wastewater and water treatment issues, which are important in rural communities, as well as resources to help build everything from libraries and day care centers and fire stations to helping to equip the local police department with new squad cars--basically everything that can help build a strong, vibrant rural community. And the reason that's important to America's farmers and ranchers is that we now see a substantial percentage of those farmers and ranchers needing off-farm income in order to be able to maintain the farm. And so when you build strong rural communities, you create job opportunities for the operators, the farmers and ranchers themselves or their spouses."

Group Seeks Sway Over E-Records System

The Healthcare Information and Management Systems Society, which represents 350 technology vendors and 20,000 members, has asked the Obama administration to require that any electronic health-record equipment receiving stimulus funding be certified by a group the association helped to start and run. The Healthcare Information and Management Systems Society, which represents 350 technology vendors and 20,000 members, was a key force behind the decision to include $36.5 billion in the stimulus package to create a nationwide network for medical records. A Washington Post review last week showed that the group, known as HIMSS, worked closely with vendors, health-care researchers and others to create nonprofit advocacy groups and generate research data to convince policymakers that such a system could save tens of billions of dollars, and that the government needed to subsidize Medicare and Medicaid providers to buy the equipment. The government estimates that adoption of electronic health records will yield perhaps $17 billion in savings over the next decade. Now the health information group is urging officials at the Department of Health and Human Services to give an organization called the Certification Commission for Healthcare Information Technology, or CCHIT, responsibility for deciding what health records systems are eligible to receive stimulus spending.

Google drops idea to buy newspaper

Google has considered buying a newspaper or using its charitable arm to support news businesses seeking non-profit status, but is now unlikely to pursue either option, said Eric Schmidt, chairman and chief executive. Google had looked at buying a newspaper but was "trying to avoid crossing the line" between technology and content, Mr Schmidt said. It was instead working with publishers to make their websites "work better" for online advertising. More broadly, he added, Google had concluded that potential acquisition targets were too expensive or carried excessive liabilities. "Clever ideas" about sheltering newspapers in non-profit structures had been suggested to the Google.org foundation but "they are unlikely to happen without some massive, massive set of corporate bankruptcies", Schmidt said.

Google tries to avoid the regulatory noose

Google is on a charm offensive to convince governments and the general public that the Internet advertising company should not be subjected to new privacy or antitrust regulation. "When markets get regulated, creative innovation is slowed. We don't think that is a good outcome," said Eric Schmidt, chief executive. "A much better outcome is for us to use good judgement. We take what we see as the consumer interest as our guiding principle," he said. Schmidt argued that, far from abusing its huge market power, Google has benefited consumers by challenging incumbents in various markets. Google's digital copying of books, for example, came from this desire to put consumer interests first, he said. The comments appeared an oblique reference to recent news that US anti-trust authorities are making informal inquiries into some aspects of Google's settlement with publishers of the lawsuits over its BookSearch service, which makes digital copies of titles and serves selected excerpts to users in response to search queries.

Battle to roll out broadband hots up

With mobile subscriptions often exceeding the number of inhabitants in some Gulf countries, cash-rich, former monopolistic telecommunications operators are looking for a new revenue stream with growth potential. Increasingly, their eyes are alighting on providing high-speed Internet access - or broadband. High-speed Internet remains rare in the Gulf outside certain population pockets. A main problem for Arab households has been the cost: broadband and good-quality computers cost more in the Gulf than in many other markets, says Fouad Alaeddin, managing partner at Ernst & Young Middle East. There has also been a cultural resistance to the Internet in some parts of the region. Mr Alaeddin adds: "Many families worry that it could expose their children to unwanted influences." Telecoms providers have also had other priorities. Leading operators have focused on acquisitions of extra-regional operators or licences to expand, perhaps to the detriment of Internet services, analysts say. Telecoms companies also have to grapple with difficult decisions on whether to invest in physical infrastructure, such as extensive but expensive fibre optic cable networks, or wireless broadband.

USPS Asks for 5-Day Delivery Week

The United States Postal Service is like a once-proud thoroughbred now crippled with a broken leg -- or two. It remains a venerable institution, but it has been so severely handicapped by the recession that lawmakers are beginning to seriously consider cutting a day of delivery. That gradual -- and reluctant -- shift in attitudes was evident at a congressional hearing yesterday at which the Postal Service again made a plea for legislation that would allow it to cut mail delivery from six days a week to five.

FCC Moving 'Full Speed Ahead' on Broadband Plan

Federal Communications Commission Chairman Michael Copps will appear on C-SPAN's "The Communicators" on Saturday. "I'm enthused as I can be that this country is finally, finally going to develop a national broadband plan," he said in the interview while lamenting the number of years that had passed while the previous administration assumed a laissez-faire, or free-market-based, strategy would solve the nation's broadband problems. "That didn't happen," Chairman Copps bluntly declared. To craft a plan, Copps said the FCC must first lay groundwork by doing research to "develop the record... do the mapping... and find the reality of the situation right now." Chairman Copps said he is not underestimating the importance of the FCC's task: "It's the biggest thing that's come to the FCC since I've been there," he said. Building a national broadband network is akin to previous efforts at rural electrification, universal phone service, and interstate highways, Copps said. Building projects of that scale requires cooperation between government and industry, he said.

Strickling and Chopra Unanimously Approved by Senate Commerce Committee

On Wednesday, the Senate Commerce Committee unanimously approved the nominations of Larry Strickling to lead the National Telecommunications and Information Administration and Aneesh Chopra to be the government's first chief technology officer. Their nominations move to the full Senate now. In a written response to questions raised by Sen Kay Bailey Hutchison (R-TX), Strickling said the NTIA should develop metrics "to accurately and demonstrably" show whether the $7.2 billion in broadband funds contained in the economic stimulus package are being used appropriately and whether the program is achieving the goals established under the statute. "There are a number of outcomes that could be used to show that unserved communities benefit from this program, including households passed with broadband service, speed of Internet service, jobs created, affordability of broadband offerings, and adoption of broadband service," Strickling wrote, noting NTIA will require grant recipients to regularly report their progress. In addition to transferring $10 million to the inspector general for oversight, NTIA has pursued transparency through public meetings and by soliciting public comment, he said. If confirmed, Strickling said he would ensure a "robust program of inspection and audits" is implemented and as the program expands, will provide information about applicants and recipients as well as quarterly reports.

Cellphone industry seen facing more trouble

A recovery in cellphone demand will not happen until well into 2010, researcher Gartner said on Wednesday, while Reuters data showed the industry could suffer its worst quarter ever in April-June. The handset market fell 8.6 percent in the first quarter of 2009, Gartner said, adding it saw demand stabilizing but it would not be until next year before demand would grow again. "We do not expect demand to get better before second half of 2010," said Gartner analyst Carolina Milanesi. A Reuters poll of 34 analysts forecast handset vendor phone sales in the April-June quarter to slump 14.5 percent, with 2009 sales forecast to slide 10.3 percent. Several companies and analysts have said the worst could well be over for the industry after the first quarter drop, as the fall was partly caused by retailers selling stockpiles of older phones.

The World According to Dick Wiley

Former Federal Communications Commission Chairman and high-powered communication attorney/lobbyist Dick Wiley believes that neither the Democratic Congress nor the soon-to-be reconstituted Democratic FCC is likely to provide broadcasters with any relief from ownership restrictions. But Wiley said he hopes that the incoming FCC Chairman Julius Genachowski will be "pragmatic" enough to recognize that there is no need to load up broadcasters with new regulations aimed at increasing "localism." According to Wiley, FCC has already tentatively concluded that stations must offer minimum amounts of local programming, organize community advisory boards, locate their main studios within their communities of license and make detailed reports on what public affairs programming they aired. "None of that is necessary," he said. "It is all counterproductive." "Broadcasters must — and actually do — serve their local communities in order to survive," Wiley said. "That is their raison d'être. That's their absolute assignment and it makes them different than any other industry." That broadcasters, particularly those in small markets, have little chance for ownership relief is unfortunate, Wiley added. "For years and years and years, some of us have been hoping that the commission and the courts and Congress would understand that broadcasting is not the center of the universe anymore. ... It's competing as a one-channel free service increasingly in a multichannel, subscription-oriented universe."