July 7, 2009 (DOJ Opens Review of Telecom Industry)
BENTON'S COMMUNICATIONS-RELATED HEADLINES for TUESDAY JULY 7, 2009
Today the Senate Committee on Agriculture considers the nomination of Jonathan Adelstein to be Administrator, Rural Utilities Service for the U.S. Department of Agriculture. See http://www.benton.org/calendar/2009-07
GOVERNMENT & COMMUNICATIONS
Freedom vs. the Firewall
China tightens Web screws after Xinjiang riot
Senate OKs Online Expenditure Proposal
Obama's Ghana Trip Will Be Tech Savvy
Sarah Palin attorney warns press on 'defamatory material'
Cybersecurity Plan to Involve NSA, Telecoms
WIRELESS
Some iPhone owners chafing at links to AT&T
Hacking Into iPhones
DOJ Opens Review of Telecom Industry
Sherman Stirs: US Revives Section 2 of the Antitrust Act
Senator Kohl Backs Telecom Probe
INTERNET/BROADBAND
World Bank says broadband is key to economic progress
Summary, Concerns, and Strategic Guidance regarding Notice of Funds Availability for BTOP
The Last Cautionary Broadband Mapping Tale Before $350 Million Is Wasted
Bandwidth envy
JOURNALISM
The Washington Post Begins Reviews of Events to Avoid Ethics Conflicts
The Return of the Pay Wall
Tribune Co. profitability continues to deteriorate
See also:Cubs sale finalized
POLICYMAKERS
Obama Picks Cahill For CPB Board
FCC Nominations Hearing July 15
HEALTH & MEDIA
Lawsuit Filed Over Stimulus Package's Health IT Provisions
Groups seek changes in meaningful use definition
MORE ON THE WEB
Media players plot survival in Sun Valley
Canadian regulator moves to help broadcasters
NAB: Support FCC's Disaster Info Program
ACA Renews Call for Retrans Reform
Marc Andreessen Invests In Talking Points Memo
Dawn of the Location-Enabled Web
A Dickens of a Relationship Problem
ASCAP Strikes Sour Chord With Consumer Advocates
The Telco Home Energy Invasion
GOVERNMENT & COMMUNICATIONS
FREEDOM VS THE FIREWALL
[SOURCE: Washington Post, AUTHOR: Editorial staff]
[Commentary] Oppressive governments devote much effort to online censorship because they recognize the power of information to promote freedom. But some independent groups are pushing back against their control. The Global Internet Freedom Consortium, a small, non-governmental organization, provides access to almost 1 million users daily and, according to recent statistics, to more than 90 percent of anti-censorship traffic from China and Iran. For the peaceful online revolution to continue, congressional support is necessary. For every dollar the United States spends to guarantee access, oppressive regimes must spend thousands to put up walls and barriers. Once enough there are enough holes in a firewall, it crumbles. The technology for this exists. What is needed is more capacity.
http://benton.org/node/26330
Recommend this Headline
back to top
CHINA TIGHTENS WEB SCREWS AFTER XINJIANG RIOT
[SOURCE: Reuters, AUTHOR: Ben Blanchard]
China clamped down on the Internet in the capital of China's northwestern region of Xinjiang on Monday, in the hope of stemming the flow of information about ethnic unrest which left 140 people dead. The government has blamed Sunday's riots in Urumqi -- the deadliest unrest since the 1989 military crackdown on the Tiananmen pro-democracy demonstrations -- on exiled Muslim separatists. Some residents in Urumqi, Xinjiang's regional capital, said they had been told there would be no Internet access for 48 hours.
http://benton.org/node/26319
Recommend this Headline
back to top
SENATE OKs ONLINE EXPENDITURE PROPOSAL
[SOURCE: CongressDaily, AUTHOR: Andrew Noyes]
Sen Tom Coburn (R-OK) on Monday successfully pushed through an amendment to the $3.1 billion FY 2010 legislative branch appropriations bill that he argued would make it easier for the public to examine Senate expenses, such as salaries for staff, travel and office operations. Those records are already computerized but his plan would make the files available online for public review. Senate Appropriations Legislative Branch Subcommittee Chairman Bill Nelson (D-Nebraska) and Senate Majority Leader Harry Reid (D-NV) supported the proposal and agreed to a limited debate on the issue. Sen Coburn said his amendment would help the Senate "lead by example" and rein in spending within individual offices while providing much needed public accountability for taxpayer dollars. "I'm just as frugal with their money in my office as I am on the floor," said Sen Coburn, who routinely objects to congressional spending sprees and has earned the nickname "Dr. No." Meanwhile, a similar effort in the House has been delayed due to "security and support issues" that the House Administration Committee says must resolved before so-called "statement of disbursements" are made available in an electronic format.
http://benton.org/node/26318
Recommend this Headline
back to top
OBAMA'S GHANA TRIP WILL BE TECH SAVVY
[SOURCE: CongressDaily, AUTHOR: Andrew Noyes]
On Saturday, President Obama will deliver a speech in Accra, Ghana and the White House is making sure Internet and mobile phone users around the world can get involved. In a message on the social networking site Facebook, administration officials said individuals will be able to submit questions, comments, and words of welcome in English or French via SMS text messages. SMS participants will also get live highlights from Obama's trip. The president will answer some questions following his speech in a radio broadcast.
http://benton.org/node/26317
Recommend this Headline
back to top
SARAH PALIN ATTORNEY WARNS PRESS ON 'DEFAMATORY MATERIAL'
[SOURCE: Politico.com, AUTHOR: Jonathan Martin]
Ratcheting up her offensive against the news media, Gov. Sarah Palin's attorney threatened on Saturday to sue mainstream news organizations if they publish "defamatory" stories relating to whether soon-to-be former-Gov Palin is under federal investigation. Thomas Van Flein warns of severe consequences should speculation that until now has largely been confined to blogs — about whether Palin embezzled funds in the construction of a Wasilla, Alaska, sports arena — find its way into print.
http://benton.org/node/26312
Recommend this Headline
back to top
CYBERSECURITY PLAN TO INVOLVE NSA, TELECOMS
[SOURCE: Washington Post, AUTHOR: Ellen Nakashima]
Apparently, the Obama Administration will proceed with a Bush-era plan to use National Security Agency assistance in screening government computer traffic on private-sector networks, with AT&T as the likely test site. President Obama said in May that government efforts to protect computer systems from attack would not involve "monitoring private-sector networks or Internet traffic," and Department of Homeland Security officials say the new program will scrutinize only data going to or from government systems. But the program has provoked debate within DHS, the officials said, because of uncertainty about whether private data can be shielded from unauthorized scrutiny, how much of a role NSA should play and whether the agency's involvement in warrantless wiretapping during George W. Bush's presidency would draw controversy. Each time a private citizen visited a "dot-gov" Web site or sent an e-mail to a civilian government employee, that action would be screened for potential harm to the network.
http://benton.org/node/26305
Recommend this Headline
back to top
WIRELESS
SOME IPHONE OWNERS CHAFING AT LINKS TO AT&T
[SOURCE: USAToday, AUTHOR: Leslie Cauley]
"Consumers are craving greater control," says Joel Kelsey, a public policy analyst with Consumers Union. So much, he says, that "they're willing to risk turning their $300-plus investment into a brick." Some iPhone owners are dropping AT&T's network and signing up with T-Mobile, voiding the device's warranty. The problem for consumers: Carrier obsession with customer control is growing. Profit is the driver. As the USA reaches wireless saturation — meaning everybody who wants a cellphone already has one — carriers have to hustle hard to add customers and grow revenue. The real pot of gold is mobile data, widely regarded as the next frontier of wireless. That's why carriers are so hot to get their hands on the latest, coolest devices — so they can sell consumers pricey data plans. To land exclusives, carriers typically pay handset makers a certain amount of money, or subsidy, per device. AT&T, for example, pays Apple more than $300. That's why AT&T's iPhone policies are so tough: It's trying to lock down customers long enough to earn back that money.
http://benton.org/node/26329
Recommend this Headline
back to top
HACKING INTO IPHONES
[SOURCE: Wall Street Journal, AUTHOR: Yukari Iwatani Kane]
Like many teenagers, Ari Weinstein spends his summers riding his bike and swimming. This year, the 15-year-old had another item on his to-do list: Foil Apple Inc.'s brightest engineers and annoy chief executive Steve Jobs. Ari is part of a loose-knit group of hackers that has made it a mission to "jailbreak" Apple's iPhone and iPod touch. The term refers to installing unapproved software that lets people download a range of programs, including those not sanctioned by Apple. Since Apple began selling its latest iPhone 3GS on June 19, Ari and six online cohorts spent hours a day probing the new product for security holes. This weekend, one of the members of the group, dubbed the Chronic Dev Team, released the jailbreaking software they've been working on. Ari says the program is a test version with some bugs, but that users have successfully downloaded it. A quarter-million people have visited the site, he says.
http://benton.org/node/26328
Recommend this Headline
back to top
DOJ OPENS REVIEW OF TELECOM INDUSTRY
[SOURCE: Wall Street Journal, AUTHOR: Amol Sharma]
Apparently, the Department of Justice has begun an initial review to determine whether large U.S. telecom companies such as AT&T and Verizon have abused the market power they've amassed in recent years. The review of potential anti-competitive practices is in its very early stages, and it isn't a formal investigation of any specific company at this point, the people said. It isn't clear whether the agency intends to launch an official inquiry. Among the areas the Justice Department could explore is whether wireless carriers are hurting smaller competitors by locking up popular phones through exclusive agreements with handset makers, according to the people. In recent weeks lawmakers and regulators have raised questions about deals such as AT&T's exclusive right to provide service for Apple's popular iPhone in the US. The Justice Department may also review whether telecom carriers are unduly restricting the types of services other companies can offer on their networks, one person familiar with the situation said. The scrutiny of the telecom industry is an indication of the Obama administration's aggressive stance on antitrust enforcement. The Justice Department's antitrust chief, Christine Varney, has said she wants to reassert the government's role in policing monopolistic and anti-competitive practices by powerful companies.
http://benton.org/node/26306
Recommend this Headline
back to top
SHERMAN STIRS: US REVIVES SECTION 2 OF THE ANTITRUST ACT
[SOURCE: Wall Street Journal, AUTHOR: Ashby Jones]
For nearly 120 years, the Sherman Antitrust Act has been the main vehicle through which the government and private parties have regulated the so-called anticompetitive behavior of corporate America. The act's two main sections target vastly different types of behavior, though each may result in both civil liability and criminal punishment. Section 1 largely addresses situations involving anticompetitive behavior of two or more entities working in concert. Cases involving price-fixing and market-division arrangements are typically brought under Section 1. Section 2 cases typically involve the behavior of one firm, acting alone. Section 2 cases generally require a private party or the government -- either the Department of Justice or the Federal Trade Commission -- to show that a firm with a significant market share has done something anticompetitive in order to increase or maintain its monopoly. Monopolies, without evidence of anticompetitve behavior, aren't necessarily illegal. While Section 1 cases are fairly common, the bulk of the headline-grabbing antitrust cases have been under Section 2. In 1911, the Supreme Court ruled that John D. Rockefeller's Standard Oil Co. had abused its monopoly power to keep others from competing and ordered the company to divide into 34 separate companies. Section 2 was also behind the breakup of AT&T, which took effect in 1984, splitting the company into seven independent holding companies, called "Baby Bells."
http://benton.org/node/26327
Recommend this Headline
back to top
SENATOR KOHL BACKS TELECOM PROBE
[SOURCE: Washington Post, AUTHOR: Cecilia Kang]
Sen Herb Kohl (D-WI), chairman of the Senate Judiciary Committee's antitrust subcommittee, sent letters yesterday to the federal agencies overseeing communications and antitrust, calling for an investigation and for action on several regulatory proposals that could give smaller carriers and software firms a better shot at competing. In the letters to Julius Genachowski, chairman of the Federal Communications Commission, and Christine Varney, head of the Justice Department's antitrust division, Chairman Kohl said his recent Senate hearing on increases in text-messaging prices among the biggest carriers represented a "warning sign for the state of competition in the cell phone market." He called for the Justice Department to closely scrutinize future mergers and to investigate whether dominant cellphone carriers are stifling competition in violation of antitrust laws. Over the past three years, the number of national wireless carriers has dropped to four from seven, and the top four carriers serve nine out of 10 cellphone users. Sen Kohl called for reforms at the FCC that would force the largest carriers to offer partnerships with smaller service providers on data roaming, so that regional-carrier customers can get smartphone service around the country. He also called for the agency to scrutinize the exclusive deals between network carriers and phone makers such as Apple and Research in Motion, which sells the BlackBerry. Smaller carriers say such deals hamper their business as customers look for the latest and fastest phones, which only run on the biggest networks.
http://benton.org/node/26326
Recommend this Headline
back to top
INTERNET/BROADBAND
WORLD BANK SAYS BROADBAND IS KEY TO ECONOMIC PROGRESS
[SOURCE: Reuters, AUTHOR: Tarmo Virki]
Many African countries should focus on lowering the cost of broadband access to help boost their economies, a World Bank report said. Seven sub-Saharan countries scored the lowest possible result in a new technology ranking by the World Bank due to low incomes, weak regulation, limited competition and a lack of private investment. But development of information technology across the continent is moving in the right direction, the report said, and innovations in the fields of mobile banking and free mobile call roaming are already being copied elsewhere. The countries in the region have started to invest in IT infrastructure, but the cost of fixed and mobile phone services and Internet services are still two to five times the average income, hampering the takeup.
http://benton.org/node/26324
Recommend this Headline
back to top
SUMMARY, CONCERNS, AND STRATEGIC GUIDANCE REGARDING NOTICE OF FUNDS AVAILABILITY FOR BTOP
[SOURCE: New America Foundation, AUTHOR: Sascha Meinrath, Joanne Hovis]
This memorandum provides analysis, strategic guidance, and policy concerns and recommendations with regard to the Broadband Technology Opportunities Program (BTOP) of the American Recovery and Reinvestment Act of 2009. This memorandum includes: 1) A summary of the latest developments in the BTOP and how they will impact many would-be applicants; 2) Strategic recommendations for activities to undertake to maximize the chances of being funded; 3) Precautionary and protective steps to take during the application preparation process; 4) Discussion of policy concerns about how the BTOP is being implemented and why it does not, in many ways, live up to the promise established by the ARRA; and, 5) Policy recommendations for incremental, strategic changes by NTIA that could improve
the program as implemented.
http://benton.org/node/26323
Recommend this Headline
back to top
THE LAST CAUTIONARY BROADBAND MAPPING TALE BEFORE $350 MILLION IS WASTED
[SOURCE: PublicKnowledge, AUTHOR: Art Brodsky]
[Commentary] North Carolina seems on track to do away with the e-NC authority, an organization created eight years ago by the state legislature to track the availability of Internet services and to push for more and faster Internet service across the state. The move is yet another cautionary tale of the perils of broadband mapping, and shows that it's now more likely than ever that the telephone and cable companies will prevail in their fight to control the information on which a national broadband plan is based. Oh, yes, and up to $350 million of taxpayer money will be totally wasted. The stimulus broadband mapping program is set up for massive failure unless changes are made. Congress has to allow more competition for grants. The Durbin argument that private, for-profit companies shouldn't do public work like broadband mapping, while non-profits should, falls apart when one considers the advantages of an independent company vs. a compromised non-profit. The agencies responsible need more detailed criteria to protect the public investment. Consistency, transparency, public verification and less protection of information are needed. Maybe then can an #epic fail can be avoided.
http://benton.org/node/26322
Recommend this Headline
back to top
BANDWIDTH ENVY
[SOURCE: TelephonyOnline, AUTHOR: Carol Wilson]
[Comentary] A study released by the Fiber Optic Council last week purported to show was that homeowners preferred high-speed Internet connections via fiber optics to other amenities. But fiber optic connections are one amenity that a homeowner often can't choose to get. It's not like putting a pool in your backyard or adding a deck — your service provider has to decide to offer fiber-to-the-home (FTTH) and to bring that network to your neighborhood and even to your street. Once it's there, sure, you have a choice. But whether you take the FTTH-based service or not, being able to say it's available could help sell a home. Conversely, there are a lot of U.S. residents who would love to have this amenity but can't get it and most likely won't ever get it. Some of those residents can't even get broadband and aren't likely to anytime soon.
http://benton.org/node/26304
Recommend this Headline
back to top
JOURNALISM
THE POST BEGINS REVIEWS OF EVENTS TO AVOID ETHICS CONFLICTS
[SOURCE: Washington Post, AUTHOR: Paul Farhi]
The Washington Post initiated internal reviews Monday to ensure that its business practices do not compromise its journalistic ethics when the newspaper organizes conferences or private events funded by sponsors. The reviews follow the revelation last week that The Post was planning private, off-the-record dinners at the home of publisher Katharine Weymouth for which it was seeking sponsors to pay $25,000 to underwrite each session and participate in salon-style discussions with politicians and journalists. Weymouth abruptly canceled the dinners after a marketing flier promoted the first event as a "non-confrontational" opportunity to influence policymakers. The publisher and newsroom editors said that they did not see the flier before it went out and that it distorted the gathering's intent. Weymouth appointed the newspaper's general counsel, Eric Lieberman, yesterday to review the discussions that led to the controversy. The review, along with a parallel inquiry by Executive Editor Marcus Brauchli and Senior Editor Milton Coleman, are aimed at avoiding another episode that could damage the paper's reputation.
http://benton.org/node/26325
Recommend this Headline
back to top
THE RETURN OF THE PAY WALL
[SOURCE: TheBigMoney, AUTHOR: Kevin Kelleher]
[Commentary] Newspapers have declared free content the enemy. For the sake of argument, let's say that news sites are routinely charging readers in five years. By then, the economy may be substantially healthier than now, and advertisers will be looking for sites with large, loyal readerships to sell their ads on. But that won't include newspapers. They'll be catering to that 10 percent of their online audience willing to subscribe. The rest of the Web will have long stopped linking to—and talking about—their stories. The dollars will flow right past the newspapers' pay walls. And then they'll really be sorry.
http://benton.org/node/26310
Recommend this Headline
back to top
TRIBUNE CO PROFITABILITY CONTINUES TO DETERIORATE
[SOURCE: Crain's Chicago Business, AUTHOR: Ann Saphir]
Tribune Co.'s financial picture deteriorated even more this year as declining advertising sales continued to hammer the newspaper industry. The company is much less profitable than before its bankruptcy filing in December and is burning through cash. Tribune's revenue declined an estimated 23% in the first half of 2009. The company had an 8% profit margin for the first few months of the year, which is less than half the 19% margin it boasted in the first half of 2008.
http://benton.org/node/26301
Recommend this Headline
back to top
POLICYMAKERS
OBAMA PICKS CAHILL FOR CPB BOARD
[SOURCE: The White House]
President Barack Obama announced his intent to nominate Patricia D. Cahill for the Board of Directors, Corporation for Public Broadcasting. Cahill has worked in public radio since 1969. She is currently the General Manager of KCUR-FM, a public radio station at the University of Missouri-Kansas City, which boasts more than 190,000 listeners weekly. Ms. Cahill is also assistant professor of communication studies at the University where she teaches broadcast management. Prior to joining KCUR, Ms. Cahill served as General Manager of KMUW-FW at Wichita State University for over a decade while teaching broadcasting and journalism at the University. She has served on the Board of Directors of National Public Radio and as President of Public Radio in Mid America. She has also worked with the Corporation for Public Broadcasting, reading grant applications and performing committee work. Ms. Cahill received her B.A. and M.A. from the University of Kansas.
http://benton.org/node/26321
Recommend this Headline
back to top
FCC NOMINATIONS HEARING JULY 15
[SOURCE: Benton Foundation, AUTHOR: ]
The Senate Commerce Committee has scheduled a nominations hearing for Mignon L. Clyburn and Meredith Attwell Baker for July 15, 2009. President Obama nominated both to serve on the Federal Communications Commission.
http://benton.org/node/26320
Recommend this Headline
back to top
HEALTH & MEDIA
LAWSUIT FILED OVER STIMULUS PACKAGE'S HEALTH IT PROVISIONS
[SOURCE: iHealthBeat, AUTHOR: ]
A new civil lawsuit alleges that the federal economic stimulus package's health IT provisions violate patients' privacy rights.
The lawsuit alleges eight counts of violating patients' rights to privacy, due process and personal security, as well as violations to the HIPAA medical privacy rule and Federal Common Law. Beatrice Heghmann, a registered nurse, filed the lawsuit in U.S. District Court for the Southern District of New York on June 25 and is seeking class action status. The lawsuit is seeking an injunction to limit access to patients' personal health information and prevent the distribution of the $22 billion allocated for EHR systems. Heghmann argues that a federal stimulus package provision that aims to get all residents' health records online by 2014 will put patients at risk of having their personal health information exposed. The lawsuit names HHS Secretary Kathleen Sebelius, White House Office of Health Reform Director Nancy-Ann DeParle and CMS Administrator Charlene Frizzera as defendants.
http://benton.org/node/26299
Recommend this Headline
back to top
GROUPS SEEK CHANGES IN MEANINGFUL USE DEFINITION
[SOURCE: GovernmentHealthIT, AUTHOR: ]
Major healthcare organizations met a deadline last week to comment on a draft of a policy on "meaningful use" of health IT unveiled by the Office of the National Coordinator for Health IT. The policy is the cornerstone of the administration's plan for using some $30 billion in economic stimulus funding to create a means for nationwide electronic health information sharing. In general, the organizations said they wanted more flexibility in the criteria under which they would qualify for payments and more time to put new required systems in place.
http://benton.org/node/26298
Recommend this Headline
back to top