July 2009

Can the Free Market Provide Broadband for Everyone?

[Commentary] Only 2 percent of the world lives in a country where broadband penetration has exceeded 80 percent, according to a report from TeleGeography. The report noted that worries over broadband saturation are really only appropriate in 10 countries out of the 127 the firm tracks, and the US isn't even one of those saturated markets. There are 36 countries where broadband providers serve less than 5 percent of the population. So while there's concern in the U.S. cable and telecommunications industries over growth in their fixed line businesses, what we really should be pondering is whether or not the low-hanging fruit of fixed-broadband access has been plucked, and if so, how do we get broadband to the rest of the world? The government can subsidize a wired infrastructure much like Australia's government is doing today with its $31 billion investment in fiber, or providers can focus on wireless if it's not cost-effective to build out wired broadband.

USDA Broadband Program Exempted from "Buy American", too

The Rural Utilities Service (RUS) is hereby granting a limited waiver of the Buy American requirements of ARRA Section 1605 with respect to certain broadband equipment that will be used in projects funded under the Broadband Initiatives Program (BIP). This action permits the use of certain essential components of a modern broadband infrastructure.

Gainers Rare Among TV Groups In '08

In what should come as no surprise to anyone following the TV broadcasting business, only six of the Top 50 TV station groups managed to grow revenues in 2008, according to the BIAfn/TVNewsday annual revenue ranking. The fortunate half dozen: Post-Newsweek (up 3.59 percent) McGraw-Hill (up 6.26 percent), Dispatch (up 7.48 percent), Capitol (up 8.75 percent), Griffin (up 4.2 percent) and CCA (up less than 1 percent). Led by Sunbelt (down 20.42 percent) and Sunbeam (down 15.29 percent), the rest of the 2008 returnees on the Top 50 ranking posted negative revenue numbers for the year, although most were in the single digits. The declines reflect the recession that gripped the country in 2008 and has yet to let go. Overall, broadcast TV revenue fell 6.5 percent to $20.1 billion in 2008, according to BIAfn, even though candidates and political advocacy groups pumped money into stations at record levels during the year's incessant campaigning. The Top 50 accounted for about 91 percent of total industry revenue for the year.

DTV Unready Homes Drop to 1.7 Million

According to Nielsen's latest figures only 1.5% of TV households, or about 1.7 million homes, remain unable to receive digital television signals. That number is down 400,000 homes from June 21.

Projections Show Retrans Fees Increasing to $1.2B by 2011

According to projections from SNL Kagan, retransmission consent fees are expected to increase to $1.2 billion by 2011. That would be more than double the $500 million for 2008, and up strongly from 2009's $739 million in retrans revenue. Kagan says that cable companies may also begin paying more than satellite operators in retrans fees starting next year. Not surprisingly, the majority of 2009 retrans fees (62%) came from the top 25 markets.According to Kagan analyst Justin Nelson, the 2009 breakdown for retrans fees is $352 million from DBS and $315 million from cable, with telcos' share estimated at $71 million.

Senate Commerce Committee to Markup Radio Spectrum Inventory Act Next Week

The Senate Commerce Committee has slated a July 8 markup for the Radio Spectrum Inventory Act. The bill was introduced by Communications Subcommittee Chairman John Kerry (D-MA) back in March. It would give the FCC and National Telecommunications & Information Administration, which manages government spectrum, 180 days to report back to Congress with an inventory of the spectrum they manage and how it is being used. That would include how much unlicensed use is allowed, how much spectrum is being used in each band, including the TV and radio bands.

BIA Chief Calls For Change in Cross Ownership Rules

Media consultancy BIA Advisory Services made a call today for a change in cross ownership rules to help stations weather the bleak economy. In a statement predicting TV station group revenue will decline by 17% in 2009, company CEO Tom Buono said: "With local media companies dying on the vine and the TV industry, in particular, hamstrung in many large and small markets, it seems like a good time to explore the steps to save local media outlets, including the elimination of media cross-ownership and local ownership rules."

[Buono went on with a complicated analysis of how increased debt helps struggling companies.]

Gannett Memo Lays Out 1400 Layoffs, Restructuring

Newspaper publisher Gannett Co. plans to cut 1,400 jobs in the next few weeks, about 3 percent of the work force, as it faces a prolonged slump in advertising revenue. The move follows a 10 percent cut at Gannett last year.

A Roundtable on the End of Scarcity, Open Architecture, and the Future of Broadband Competition Policy

On May 5, 2009, the Silicon Flatirons Center and the Information Technology & Innovation Foundation (ITIF) brought together leading individuals from the telecommunications industry, academia, and public interest community to discuss the state of broadband competition policy. The discussion touched on a number of topics, which fell under the broad questions of what policy goals should guide broadband policy and what institutional strategies are best positioned to advance them. The roundtable left three questions on the table for further discussion. First, as to the nature of broadband competition, the level of competition and the role of next generation wireless networks were questions about which the participants either remained uncertain or had different opinions. Second, the roundtable participants did not achieve consensus on the optimal nature of network management. Finally, there was no consensus on what strategy should be used to guarantee that broadband providers continue to provide robust and growing levels of basic best efforts access to the public Internet.

First Lady Obama announces $851M in grants for community health centers

First Lady Michelle Obama announced the release of $851 million in grants to Community Health Centers. The Recovery Act Capital Improvement Program (CIP) grants will support the construction, repair and renovation of more than 1,500 health center sites nationwide. More than 650 centers will use the funds to purchase new equipment or health information technology systems, and nearly 400 health centers will adopt and expand the use of electronic health records.

Benton

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