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  2. July 2009

July 2009

Department of Energy Publishes Smart Grid Policy

This Policy Statement provides guidance regarding the development of a smart grid for the nation's electric transmission system focusing on the development of key standards to achieve interoperability and functionality of smart grid systems and devices. In response to the need for urgent action on potential challenges to the bulk-power system, in this Policy Statement the Commission provides additional guidance on standards to help to realize a smart grid. The Commission also adopts an Interim Rate Policy for the period until interoperability standards are adopted by the Commission, which will encourage investment in smart grid systems.

Obama Continues To Tout Health IT as a Key to Health Reform

As President Obama continued his push to reform the U.S. health care system, he highlighted the Cleveland Clinic as a model for how effective health IT systems can improve care and lower costs. Obama visited the Cleveland Clinic on Thursday and viewed a presentation on the center's health IT initiatives. Cleveland Clinic executives also spoke with the president about patient-centered health IT projects involving Microsoft HealthVault, Google Health and MyChart. MyChart currently connects 202,000 patients to an online portal for appointment scheduling, prescription management, preventive health reminders and test results. C. Martin Harris, Cleveland Clinic's CIO and a member of HHS' Health IT Standards Committee, said the center "is developing health IT that gives patients the power to better manage their health care." Harris added that the Cleveland Clinic is "focused on helping lead the nation toward a comprehensive electronic medical records system that will reduce medical errors, improve quality and lower costs." During a town-hall meeting later that day, Obama said the Cleveland Clinic has "one of the best health IT systems in the country."

Health record haste sparks privacy fears

The economic stimulus law is creating privacy risks as it forces fast development of electronic health records, according to at least one privacy advocate. The Privacy and Security Workgroup of the Health and Human Services Department's Health Information Technology Standards Committee presented its recommendations to the committee on July 21. It included a framework of 37 standards to be implemented in phases in 2011, 2013 and 2015. But Dr Deborah Peel, founder of the Coalition for Patient Privacy, said the proposals postpone several major privacy protections until 2015 even though the bulk of the health IT implementations will begin in 2011.

Associated Press Has A Plan So Cunning Even They Don't Know How It Works

[Commentary] Every now and then a company or organization finds itself challenged by the fact that the Internet gives people lots of interesting alternatives and thus upsets traditional business models. This prompts said company to flail around for a bit, denouncing how piracy or whatever is unfairly destroying it, then announcing some stunning new proposal or plan that lashes out at this supposed piracy. Usually, since the problem is not "piracy" but "competition," this plan makes no sense whatsoever. The Associated Press is the latest organization to jump off the deep end. AP believes that by setting up a "beacon" system for its content it can require everyone "stealing" its content to pay royalty fees. There are several problems with this scheme. First, the article does not make clear whether it tries to cover linking as "using content" for free. I'm not sure that it could, nor does it make sense given their theory of "piracy." If I link to an AP story, I haven't copied anything and clicking the link actually brings people to the content — the desired result from AP's perspective. Nor can the AP prevent me from describing an AP story even without a link. Heck, many of my local radio stations do this with my local newspapers, simply summarizing articles with an attribution. So if the object is to prevent people from linking to AP articles, or discussing AP articles (the "free ride" that so incenses the traditional news media and its defenders), this proposal really doesn't seem likely to help.

National Broadband Plan Workshop (Consumer Welfare)

See summary of the workshop

See a webcast of the event

Federal Communications Commission
Room TW-C305 (Commission Meeting Room)
445 12th Street SW
Washington, DC 20554

Sept 9, 2009
1:30pm-5:00pm

Contact:
Andrew Nesi
Andrew.Nesi@fcc.gov
(202) 418-3601
http://broadband.gov/ws_consumer_welfare.html

The goal of this workshop is to consider ways in which broadband can improve consumer welfare and what are the barriers to consumers enjoying those benefits. The workshop will look at ways in which consumers use the internet today and how they are likely to do so in the future, and consider whether that use can be expanded through policies that improve the consumer experience. The workshop will also look at the way consumers buy broadband and whether there are any policies that would help increase adoption, utilization or in other ways address the Congressional goals for the national broadband plan.

Government Participants:

  • John Horrigan, Consumer Research Director, Omnibus Broadband Initiative
  • Marc Berejka, Senior Policy Advisor, Office of the Secretary, U.S. Department of Commerce
  • Robert Cannon, Senior Counsel for Internet Law, Federal Communications Commission
  • Brian David, Adoption and Usage Director, Omnibus Broadband Initiative
  • Mark Wroblewski, Deputy Director, Office of Policy Planning, Federal Trade Commission

Panelists:

  • Michael R. Nelson, Visiting Professor, Communication, Culture and Technology, Georgetown University
  • Sascha Meinrath, Director, Open Technology Initiative, New America Foundation
  • Joel Kelsey, Policy Analyst, Consumers Union
  • Ari Schwartz, Vice President & Chief Operating Officer, Center for Democracy and Technology
  • Adam Thierer, Director, Center for Digital Media Freedom and Senior Fellow, Progress and Freedom Foundation (see prepared presentation)
  • Alan Simpson, Director of Policy, Common Sense Media
  • Burke Culligan, Senior Director, Product Management, Yahoo!, Inc. (see prepared presentation)
  • Michael W. McKeehan, Executive Director, Internet and Technology Policy, Verizon (see prepared presentation)
  • Timothy Sparapani, Director, Public Policy, Facebook

The following are some of the preliminary topics that will be covered at this workshop. The FCC is inviting suggestions.

  • Transparency
  • Ratings
  • Price comparisons
  • Privacy
  • Security

Here's a look at what some are already telling the FCC about broadband and consumerwelfare...

Public Knowledge, the Media Access Project, the New America Foundation and U.S. PIRG
To correct the failures of our recent broadband policy, we suggest several elements that should be part of a new policy:

  • An open Internet should be the foundation of the National Broadband Plan. The FCC should move quickly to adopt a non-discrimination principle, which will allow the Internet to operate as an open system as it has from the start. Activities such as monitoring Internet connections for copyrighted materials must not be allowed, just as opening of mail is not allowed to be part of a widespread fishing expedition on behalf of a private industry.
  • User privacy must be protected in areas of content and customer records.
  • Consumer rights must be rigorously enforced, with Internet Service Providers required to provide the services they advertise, without hidden charges or unfair practices.
  • The Universal Service Fund and Lifeline programs must be restructured to aid in the deployment of broadband networks. Broadband, not voice communications, is the "must have" utility of the 21st century, and a broadband plan should address continuing funding needs for upgrades of networks and demand-side outreach and training.

The regulatory regime should reflect the failures of the marketplace, which have resulted in minimal competition, and higher rates for lower speeds than in many other industrialized nations.

National Consumers League
A lesson from the telephone marketplace can be applied in this instance to the broadband marketplace. In numerous states where telephone rates remain regulated, the cost of providing basic dial-tone service is kept low so as to remain affordable to the great majority of consumers. Similarly, numerous federal programs including the Universal Service Fund and the Lifeline and Link-Up programs seek to keep telephone rates affordable. While this basic service does not provide a high-level of functionality it does provide a degree of connection to essential local services for consumers.

In the Notice of Inquiry, the Commission requests comment regarding how broadband stimulus and universal service funds can be used to address consumers' broadband needs. We support the use of broadband stimulus funds to begin to address the goal of deploying ubiquitous, universally accessible broadband, focusing first on unserved and underserved areas. Building out broadband is not sufficient to eliminate the Digital Divide if the resulting service is not affordable, however. To achieve a baseline level of affordability, we urge the Commission to pair the use of broadband funds with an expansion of the Lifeline and Link-Up programs to encompass broadband, with appropriate funding coming from the Universal Service Fund.

Media Access Project
To meet the constitutional imperative to create a vibrant platform for democratic discourse and to promote the exchange of political, social, artistic and philosophical expression, as well to create an opportunity for economic growth and innovation, the FCC should take an aggressive view of the role of government in the buildout and expansion of broadband. National broadband access can revolutionize the way that American citizens communicate, work, entertain, and inform themselves, but unless federal action is taken to ensure that such access is truly affordable, competitive and ubiquitous, the digital divide will grow into a gaping chasm.

Electronic Privacy Information Center
In keeping with this history, the Commission should exercise its ancillary jurisdiction to ensure that the national broadband plan includes robust privacy safeguards, lest consumers' critical broadband privacy interests go unaddressed. The rollout of national broadband will dramatically increase the incentives for and potential value of collecting and selling personal consumer information; reliance on industry self-regulation, therefore, is unlikely to be sufficient. Indeed, even now, industry self-regulation has not prevented ISPs and major Internet companies from collecting and using consumer data in extremely troubling ways. Furthermore, although lawmakers have indicated plans to propose legislation protecting Internet privacy, such legislation is not guaranteed to become law. Even if an Internet privacy law were passed, it may not provide adequate privacy protections. Therefore, the Commission can and should lead the way by explicitly enshrining consumer privacy protections in the national broadband plan.

Center for Digital Democracy, Privacy Rights Clearinghouse, and U.S. PIRG
Studies show that consumers are concerned about online privacy, eschewing intrusive data collection and sharing when they learn of such practices. However, most consumers do not know about these types of data collection and sharing, nor do they understand the privacy and security risks that are part of online commerce. And young consumers especially have difficulty understanding these risks, as children and adolescents are at a developmental disadvantage to give meaningful and informed consent to collection of their personal data. We urge the FCC to take the steps detailed below in to protect consumer privacy rights from exploitation.

Family Online Safety Institute
We can build such a culture of responsibility online if six layers work together in tandem: 1) government; 2) law enforcement; 3) industry; 4) teachers; 5) parents; 6) kids. Specifically, we can create a safe, healthy and productive environment for kids online if we have:

1) Reasonable government support;
2) Fully resourced law enforcement;
3) Robust and comprehensive industry self-regulation;
4) Tech-savvy teachers;
5) Empowered parents; and
6) Resilient kids making wise choices about the content they access and post online, the
people they contact, the people they allow to contact them, and how they conduct
themselves when online.

Keeping kids safe online is a shared responsibility. If each of the players noted above is
empowered with the resources needed to accomplish this achievable goal, we will have a culture
of responsible digital citizens making wise choices online.

Consumer Policy Solutions

  • Broadband service should reach all households.
  • The benefits of broadband enhance daily life for all consumers. The value is even potentially greater for some underserved populations, particularly older individuals.
  • The national broadband plan must commit to a robust strategy for adoption.
  • The barriers to adoption should be addressed in the broadband plan with remedies to reduce those barriers.
  • Any broadband plan should also consider issues that impact not only adoption, but also the retention and value of broadband service.

The Future Of Privacy Forum
The national broadband plan should make clear that transparency and control are essential to consumers' confidence about the privacy of their information online, and that only with such consumer confidence will we achieve the Internet usage that is tied to our national broadband goals. Internet companies operating under the national broadband plan must recognize that they have an ongoing relationship with their customers and that continued trust from customers is critical to maintaining that relationship, and to growing Internet business. Such trust can only be achieved if consumers feel that they are receiving sufficient information about and are in control of how their personal data is used online. Thus, when Internet companies offer customized online experiences through the collection and use of user data, or participate in targeted online advertising, they must make clear to consumers what is happening and must give consumers real choice over the collection and use of their data for such activities.

Data Foundry
NOI specifically addresses issue of broadband privacy - these comments address how to protect internet user's privacy. Comments will address looming threats posed by deep packet inspection and monitoring of internet by broadband providers.

  • Data Foundry requests the Commission to state a declaration of public policy against the compulsory waiver of privacy as a condition of receiving broadband service. This declaration would be privately enforceable in courts of law and would empower Internet users to protect their own privacy. A public policy against terms of service that impose monitoring would set a default rule of privacy for the Internet, rather than the current default of no-privacy.

Monitored Internet: most top providers use DPI and peer into Americans internet use. DPI tends to be masked under the term network management.

  • this highly-invasive form of monitoring presents a lucrative opportunity for broadband providers to monetize the content and various forms of traffic that touch their networks. This presents a clear conflict between the business interests of the broadband providers and the privacy interests of Internet users.

Implications of an Internet w/o privacy.

  • Threatens consumer surfing and business development on the web as well as financial transactions done over the internet.

Solution: Protection of Privacy as a Public Policy

  • Users that want and require privacy should not be forced to submit to DPI as a mandatory condition of service and should have the opportunity to remain free from monitoring. DPI must only occur with the user's informed consent (opt-in) and actual knowledge that the result will be the total waiver of all expectations of privacy in the inspected communications. This standard of voluntary monitoring - rather than mandatory monitoring - would set privacy as the default rule for American broadband.
  • FCC should mandate the rule through a simple declaration of public policy against non consensual monitoring of users communications.
  • Such a declaration would be enforceable in courts, under traditional contract and consumer protection laws. This would empower Internet users to protect their own privacy rights by ensuring that broadband Internet access is never offered on a monitored-only basis. Should broadband providers violate this public policy and offer Internet access without a clear opt-in requirement for monitoring, it would be the consumers themselves and their state attorneys general that would bring broadband providers back into compliance.

August 11, 2009
3 p.m. -- 4 p.m.
The meeting will take place by teleconference.
For access to the conference bridge and meeting materials, contact Ms. Sue Daage at (703) 235-5526 or by e-mail at
sue.daage@dhs.gov by 5 p.m. August 4, 2009.

NSTAC advises the President on issues and problems related to implementing national security and emergency preparedness telecommunications policy. At the upcoming open meeting, the NSTAC Principals will receive comments from government stakeholders and updates on the October Planning Meeting and the Satellite Task Force. The NSTAC also will discuss and vote on the 2009-2010 Work Plan.

See http://edocket.access.gpo.gov/2009/pdf/E9-17806.pdf


July 27, 2009 (Warrantless Surveillance: Lawful, Effective and Necessary)

BENTON'S COMMUNICATIONS-RELATED HEADLINES for MONDAY, JULY 27, 2009

The FCC's Indian Telecommunications Initiatives Regional Workshop and Discussion kicks off a busy telecom week... see http://benton.org/calendar/2009-07-26--P1W


GOVERNMENT & COMMUNICATIONS
   Warrantless Surveillance: Lawful, Effective and Necessary
   Federal Websites: Cookie Policy
   E-government 2.0
   Cybersecurity Panel Enters New Phase
   White House eases stimulus lobbyist restrictions

POLICYMAKERS
   Senate Confirms FCC Nominees
   Antitrust Chief Hits Resistance in Crackdown

BROADCASTING
   An Open Letter to the FCC's New Chairman: Save Broadcast TV Before it is Too Late
   Conyers Requests Probe Of Arbitron
   Government Exceeds Original Converter Box Coupon Funding Limit
   FCC Engineers To Take Closer Look At DTV Problem Areas
   Lawmakers Seek to Curb Drug Commercials
   Health-Care Debate Is Tonic for Local TV
   Talk Radio Rules Blue Dog States
   Want a better spot on the dial in New York City? Open up your wallet.
   'Nightline' Is Thriving in Late Night

BROADBAND/INTERNET
   Ireland's largest ISP to start 'throttling' illegal downloaders
   BIP/BTOP Frequently Asked Questions

MORE ONLINE
   Media moguls rethink Web advertising in downturn
   Lab Watches Web Surfers to See Which Ads Work
   Start-Up Plans to Make Journalism Pirates Pay Up
   Apple joins forces with record labels
   Experts Debate Information, Privacy
   Verizon's Overtures To Policy Makers Recognize New Era
   Experts split on 'Kindle in Every Backpack'
   Millions in Colorado phone subsidies doled out in error
   The New Joblessness

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GOVERNMENT & COMMUNICATIONS

WARRANTLESS SURVEILLANCE: LAWFUL, EFFECTIVE AND NECESSARY
[SOURCE: New York Times, AUTHOR: Michael Hayden]
[Commentary] The recent report of inspectors general on the President's Surveillance Program operated by the National Security Agency has led some to make hasty and deeply flawed judgments about the value and legality of what was a critical part of protecting America from further attack after Sept. 11. The program was crucial in addressing one of the most stinging criticisms of the 9/11 commission — the need to reduce the gap between foreign intelligence and domestic security. This was an especially difficult task, which helps explain both the program's importance and its sensitivity. The program was lawful, effective and necessary. The reflexive judgments to the contrary seem hasty at best.
http://benton.org/node/26660
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FEDERAL WEBSITES: COOKIE POLICY
[SOURCE: Office of Science and Technology Policy, AUTHOR: Michael Fitzpatrick, Vivek Kundra]
During the Open Government Initiative outreach, Federal employees and the public have asked the Office of Science and Technology Policy questions about the federal government's policy on cookies. As part of efforts to create a more open and innovative government, the office is working on a new cookie policy and will want your input. The White House Office of Management and Budget is considering a three-tiered approach to the use of web tracking technologies on Federal Government websites: 1st - Single-session technologies, which track users over a single session and do not maintain tracking data over multiple sessions or visits; 2nd - Multi-session technologies for use in analytics, which track users over multiple sessions purely to gather data to analyze web traffic statistics; and 3rd - Multi-session technologies for use as persistent identifiers, which track users over multiple visits with the intent of remembering data, settings, or preferences unique to that visitor for purposes beyond what is needed for web analytics.
http://benton.org/node/26647
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E-GOVERNMENT 2.0
[SOURCE: McKinsey Quarterly, AUTHOR: Jason Baumgarten, Michael Chui]
Despite spending enormous amounts on Web-based initiatives, government agencies often fail to meet users' needs online. By employing new governance models, investing in Web capabilities, and embracing user participation, agencies can raise the effectiveness of their online presence.
http://benton.org/node/26646
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CYBERSECURITY PANEL ENTERS NEW PHASE
[SOURCE: CongressDaily, AUTHOR: Andrew Noyes]
A blue ribbon panel of high-tech and security experts whose December report spurred a flurry of cybersecurity hearings and legislation is entering a new phase that its co-chairs hope will inform and influence the Obama administration. The Center for Strategic and International Studies' Commission on Cybersecurity for the 44th Presidency has begun examining "foundational problems" that are key to fixing the nation's security vulnerabilities with the goal of releasing recommendations this year, Microsoft Vice President Scott Charney said.
http://benton.org/node/26643
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WHITE HOUSE EASES STIMULUS LOBBYIST RESTRICTIONS
[SOURCE: The Hill, AUTHOR: Roxana Tiron]
In a significant change, the Obama administration will now allow lobbyists to meet and have telephonic discussions with government officials regarding economic recovery projects. The lifting of the ban comes after K Street has cried foul for months and has challenged the White House on its restrictions. The revised rules will allow government personnel to accept meetings and calls from federally registered lobbyists on the implementation of stimulus projects. The head of the Office of Management and Budget, Peter Orszag, issued a new guidance late Friday regarding the administration's communications with registered lobbyists about economic recovery funds. Lobbyists can make their cases -- and agency officials can listen to them -- at "widely attended gatherings." Government officials have to ask whether the person they are talking to at such events is a federally registered lobbyist speaking on behalf of a client. Agency officials are required to promptly disclose on the Internet all oral and written communications with lobbyists concerning policy or projects funded under the recovery act. They also have to disclose any written communications with lobbyists regarding pending applications for competitive funding. The one caveat, however, is that lobbyists can talk to agency representatives only about logistical issues or general questions regarding stimulus grants. Agency officials have to document any discussion with a lobbyist that veers toward advocacy of stimulus policy or a particular project.
http://benton.org/node/26637
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POLICYMAKERS


SENATE CONFIRMS FCC NOMINEES
[SOURCE: US Senate Commerce Committee]
On Friday, the Senate confirmed the nominations of Mignon L. Clyburn and Meredith Attwell Baker to serve as members of the Federal Communications Commission. Senate Commerce Committee Chairman Jay Rockefeller said, "I am incredibly pleased to see the President's nominees, Ms. Mignon L. Clyburn and Ms. Meredith Attwell Baker, confirmed by the United States Senate. As a seasoned state regulator, Ms. Clyburn brings with her a strong understanding of the telecommunications challenges rural Americans face everyday. With Ms. Baker, I look forward to an insider's perspective of someone who has toiled in the trenches at the NTIA. I challenge both of these devoted public servants to show us that the FCC can put consumers first. And I challenge both to show us that the American people can have access to first class communications, no matter who they are or where they live." The Senate also confirmed former-FCC Commissioner Jonathan Adelstein to head the Rural Utilities Service at the Department of Agriculture.
http://benton.org/node/26651
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ANTITRUST CHIEF HITS RESISTANCE IN CRACKDOWN
[SOURCE: New York Times, AUTHOR: Stephen Labaton]
President Obama's top antitrust official and some senior Democratic lawmakers are preparing to rein in a host of major industries, including airline and railroad giants, moving so aggressively that they are finding some resistance from officials within the administration. The official, Christine A. Varney, the antitrust chief at the Justice Department, has begun examining complaints by the phone companies Verizon and AT&T that their rivals — major cable operators like Cablevision and Cox Communications — improperly prevent them from buying sports shows and other programs that the cable companies produce. Varney has also challenged agreements that the Federal Trade Commission and consumer groups say discourage pharmaceutical companies from marketing more generic drugs. And she is examining a settlement between Google and book publishers and authors to make more books available online. The more aggressive antitrust policy was described in interviews with officials at the White House, the Justice Department, other agencies and Congress. It is a major policy reversal from the Bush administration, which did not prosecute cases in which some dominant companies engaged in potentially anticompetitive behavior, often because those officials maintained such behavior was not harmful to consumers. Democrats have spent years trying to gain the support of businesses, and the policy changes under way may have long-term political implications for their party. Some companies would like to see more aggressive antitrust enforcement against their rivals, while others could be hurt by it.
http://benton.org/node/26649
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BROADCASTING


AN OPEN LETTER TO THE FCC'S NEW CHAIRMAN
[SOURCE: TVNewsCheck, AUTHOR: Harry Jessell]
[Commentary] Jessell writes Federal Communications Commission Chairman Julius Genachowski saying that the television station business is the victim of economic troubles, cutbacks in advertising and relentless and increasing competition for audience from cable and now the Internet. If nothing is done, he warns, broadcasting service will inevitably degrade and trigger a downward ratings spiral from which stations may not be able to recover. To insure that doesn't happen, FCC needs to immediately address the troubles of TV broadcasting and take steps to bolster the financial health of the industry. What's to be done? 1) Place a moratorium on the adoption of rules and regulations that would impose additional burdens on broadcasters. 2) Relax the local ownership rules. 3) Eliminate the newspaper-broadcast crossownership ban in all markets. 4) Eliminate the FCC policy prohibiting a security interest in FCC licenses. 5) Signal a willingness to grant waivers of the 25 percent limit on alien ownership of holding companies with stations. 6) Expand the must-carry obligations so that cable systems have to carry all a TV station's digital channels offered free to the public. 7) Recommend to Congress that it pass no law weakening the ability of TV stations to negotiate freely for retransmission consent fees. 8) Recommend to Congress that it amend the All-Channel Receiver Act to require that all cell phones sold in the US be equipped with a mobile DTV tuner. 9) Recommend to Congress that it amend the compulsory copyright license so that Web sites can stream local TV signals in their entirety on the condition that the signals cannot be received outside their local markets. 10) Reverse and clarify FCC indecency rules to relieve broadcasters of liability for so-called "fleeting expletives" and other incidental use of "indecent" language. 11) Open a notice of inquiry to examine whether TV stations operating in the VHF band will have sufficient power to provide effective mobile DTV service. 12) Announce promptly the FCC's interest to at least consider some or all of the above recommendation to reassure bankers and investors that the industry may soon get some regulatory relief.
http://benton.org/node/26659
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CONYERS REQUESTS PROBE OF ARBITRON
[SOURCE: CongressDaily, AUTHOR: Andrew Noyes]
House Judiciary Chairman John Conyers (D-MI) and a number of colleagues on Friday asked the Government Accountability Office to investigate the Arbitron ratings company's use of so-called portable people meters and their impact on radio station revenue streams. Many minority-owned broadcasters have expressed concerns about the validity of data collected by the machines and National Association of Black Owned Broadcasters Executive Director James Winston complained about the devices at a hearing earlier this month. Chairman Conyers wants the report finished by April 2010. Other members signing on to the letter include: House Oversight and Government Reform Chairman Edolphus Towns and ranking member Darrell Issa, R-Calif.; Rick Boucher, D-Calif., Hank Johnson, D-Ga., Maxine Waters, D-Calif., Linda Sanchez, D-Calif., Mike Quigley, D-Ill., Pedro Pierluisi, D-P.I., and Sheila Jackson Lee, D-Texas.
http://benton.org/node/26645
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GOVERNMENT EXCEEDS ORIGINAL CONVERTER BOX COUPON FUNDING LIMIT
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
The government has officially redeemed more coupons than it could have paid for with the original funds set aside for the DTV-to-analog converter box coupon program, though there will likely be some funds left over from the larger allocation. According to the most recent figures from the National Telecommunications & Information Administration (as of July 22), the government has redeemed 33,578,000 of the $40 coupons that allow viewers to continue to receive a digital TV signal on an analog set. The original $1.34 billion in funding for the program would have covered 33.5 million of the $40 coupons. Democrats had long argued the program was underfunded.
http://benton.org/node/26642
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FCC ENGINEERS TO TAKE CLOSER LOOK AT DTV PROBLEM AREAS
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
Apparently, the Federal Communications Commission is likely to send out engineers to do "a more thorough examination" of continuing digital television reception issues in some top markets, including the top two. FCC engineers are likely to do more extensive testing in markets -- including New York and Chicago -- where there were reception issues, particularly with VHF stations.
http://benton.org/node/26641
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LAWMAKERS SEEK TO CURB DRUG COMMERCIALS
[SOURCE: New York Times, AUTHOR: Natasha Singer]
In the 1980s, Nancy Reagan told Americans to "Just Say No" to recreational drugs. Now a handful of legislators are just saying no to TV commercials for prescription drugs. The politicians are taking aim at the 60-second spots that have made viewers familiar with maladies like male urinary urgency and deficient eyelashes. Rep James Moran (D-VA) is sponsoring a House bill that would ban ads for prescription sexual aids like Viagra and Levitra from prime-time television, on decency grounds. Rep Henry Waxman (D-CA) has said he favors empowering the Food and Drug Administration to bar consumer advertisements for new drugs for an initial period after the FDA approves them — until there has been more real-world experience with the medications. Meanwhile, Rep Jerrold Nadler (D-NY) has introduced a bill called the Say No to Drug Ads Act. It would amend the federal tax code to prevent pharmaceutical companies from deducting the cost of direct-to-consumer drug advertisements as a business expense.
http://benton.org/node/26655
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HEALTH-CARE DEBATE IS TONIC FOR LOCAL TV
[SOURCE: Wall Street Journal, AUTHOR: Suzanne Vranica, Alicia Mundy]
Local television stations, suffering from steep declines in ad spending, are getting a much-needed shot in the arm from lobbying groups trying to sway the national debate over health care. Altogether, groups on various sides of the debate have spent an average of about $1 million a day in recent weeks, analysts say. Some ads from conservative groups say Democrats want to bring Canadian-style, government-run health care to the US. Supporters of health-care overhaul, meanwhile, have resurrected "Harry and Louise," the fictional couple whose on-screen fretting about government involvement in their medical decisions helped sink the Clinton administration's effort to revamp the health-care system. This time, the couple are singing a different tune, calling for legislation to guarantee coverage for Americans with pre-existing medical conditions.
http://benton.org/node/26654
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TALK RADIO RULES BLUE DOG STATES
[SOURCE: The Huffington Post, AUTHOR: Sue Wilson]
[Commentary] Seven Blue Dog Democrat members of the House Commerce Committee are banding together, and if they don't get their way, they can gun down the health care bill. Drive across the seven states they represent: Arkansas, Georgia, Indiana, Louisiana, Ohio, Tennessee, and Utah, turn on your car radio, and you'll know why public support for health care reform has waned. In the Blue Dog Seven states, just three stations broadcast any kind of progressive talk. Three progressive radio stations in seven entire states. But Sean Hannity "freely" prevaricates on dozens of radio stations; Rush Limbaugh deceives people on 98 in those seven states alone. 98 publicly owned frequencies where public debate comes second to selling ads for Snapple.
http://benton.org/node/26639
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WANT A BETTER SPOT ON THE DIAL IN NYC? OPEN UP YOUR WALLET
[SOURCE: Los Angeles Times, AUTHOR: Joe Flint]
The price of real estate is rising in New York — at least on the TV dial. Time Warner Cable just rejiggered its lineup of channels in the Big Apple on its cable systems, and the cost of moving to a better neighborhood is pretty steep. According to people familiar with this dance, it is not unheard of for a cable network to pay Time Warner Cable as much as $5 million annually for what it considers to be a good channel position in New York City, which is the nation's No. 1 TV market and home to all the top advertising agencies. Although it may seem anachronistic in the age of digital video recorders and remote controls, channel position still matters. Being lower on the dial is better than being higher, and being adjacent to other similarly themed channels beats being banished to cable Siberia.
http://benton.org/node/26638
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'NIGHTLINE' IS THRIVING IN LATE NIGHT
[SOURCE: New York Times, AUTHOR: Bill Carter]
While most of the attention, starting in June, has focused on the fight between the new host of NBC's "Tonight Show," Conan O'Brien, and his CBS rival, David Letterman, ABC's venerable news program "Nightline" has managed mostly to fly under the radar — in an upward trajectory. Viewership for the news show is up 14 percent in the last six weeks compared with the same week a year ago, and, in the most recent two weeks, the program has frequently grabbed the most viewers of the three shows. "'Nightline' is a rare example of the broadcast networks' counterprogramming; it almost never happens outside of prime time," said Brad Adgate, senior vice president for research at Horizon Media.
http://benton.org/node/26658
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BROADBAND/INTERNET


IRELAND'S LARGEST ISP TO START 'THROTTLING' ILLEGAL DOWNLOADS
[SOURCE: The Christian Science Monitor, AUTHOR: John Hearne]
As record companies across the world continue to fight a largely losing battle to protect their copyrights, they are looking to a voluntary agreement with Eircom, Ireland's largest Internet service provider (ISP), as a possible new model. Next month, Eircom will be rolling out the trial phase of the strategy promised in the agreement, testing a new "three strikes and you're out" approach to first delay, and then deny, Internet service to people who use filesharing networks to illegally download music. First-time offenders will get a warning on their bill; a second offense will see service "throttled," which means that download speeds will be reduced to a snail's pace, and a third offense will cause disconnection.
http://benton.org/node/26652
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BIP/BTOP FREQUENTLY ASKED QUESTIONS
[SOURCE: BroadbandUSA.gov, AUTHOR: ]
Thirteen pages of questions and answers on 1) applying for broadband stimulus funds, 2) infrastructure issues, 3) public computers centers and sustainable adoption, 4) eligibility and matching, 5) the review and award process and 6) award terms and conditions. Perfect for the beach!
http://benton.org/node/26650
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Start-Up Plans to Make Journalism Pirates Pay Up

Online piracy isn't just a problem for music companies; it hurts newspapers and magazines as well. News organizations are now trying to do something about the many Web sites that simply copy articles and paste them into their own pages. A start-up called Attributor, based in Redwood City, Calif., is proposing an approach that is more carrot than stick. It has developed an automated way for newspapers to share in the advertising revenue from even the tiniest sites that copy their articles. The plan faces many technical and legal hurdles. Attributor wants to take some of the ad money that would have been paid to the pirate site and give it to the copyright owner instead. To do that it needs the cooperation of big advertising networks like those run by Google and Yahoo. So far those companies have reacted coolly to the proposal.

Warrantless Surveillance: Lawful, Effective and Necessary

[Commentary] The recent report of inspectors general on the President's Surveillance Program operated by the National Security Agency has led some to make hasty and deeply flawed judgments about the value and legality of what was a critical part of protecting America from further attack after Sept. 11. The program was crucial in addressing one of the most stinging criticisms of the 9/11 commission — the need to reduce the gap between foreign intelligence and domestic security. This was an especially difficult task, which helps explain both the program's importance and its sensitivity. The program was lawful, effective and necessary. The reflexive judgments to the contrary seem hasty at best. [Michael Hayden was the director of the Central Intelligence Agency from 2006 to 2009 and the director of the National Security Agency from 1999 to 2005.]

An Open Letter to the FCC's New Chairman: Save Broadcast TV Before it is Too Late

[Commentary] Jessell writes Federal Communications Commission Chairman Julius Genachowski saying that the television station business is the victim of economic troubles, cutbacks in advertising and relentless and increasing competition for audience from cable and now the Internet. If nothing is done, he warns, broadcasting service will inevitably degrade and trigger a downward ratings spiral from which stations may not be able to recover. To insure that doesn't happen, FCC needs to immediately address the troubles of TV broadcasting and take steps to bolster the financial health of the industry. What's to be done?

1) Place a moratorium on the adoption of rules and regulations that would impose additional burdens on broadcasters.

2) Relax the local ownership rules.

3) Eliminate the newspaper-broadcast crossownership ban in all markets.

4) Eliminate the FCC policy prohibiting a security interest in FCC licenses.

5) Signal a willingness to grant waivers of the 25 percent limit on alien ownership of holding companies with stations.

6) Expand the must-carry obligations so that cable systems have to carry all a TV station's digital channels offered free to the public.

7) Recommend to Congress that it pass no law weakening the ability of TV stations to negotiate freely for retransmission consent fees.

8) Recommend to Congress that it amend the All-Channel Receiver Act to require that all cell phones sold in the US be equipped with a mobile DTV tuner.

9) Recommend to Congress that it amend the compulsory copyright license so that Web sites can stream local TV signals in their entirety on the condition that the signals cannot be received outside their local markets.

10) Reverse and clarify FCC indecency rules to relieve broadcasters of liability for so-called "fleeting expletives" and other incidental use of "indecent" language.

11) Open a notice of inquiry to examine whether TV stations operating in the VHF band will have sufficient power to provide effective mobile DTV service.

12) Announce promptly the FCC's interest to at least consider some or all of the above recommendation to reassure bankers and investors that the industry may soon get some regulatory relief.

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