October 2009

Fox Looks To Join CBS' Retrans Fee Act: Will Cable Look To Upstage?

[Comentary] For some time CBS has been the lone performer when it comes to garnering outright retransmission fees from cable systems to carry its local TV station signals. CBS' long-term goal is to bring in $300 million a year, about 50 cents a month for each cable subscriber. Currently, it has a long way to go. One analyst estimates CBS pulled in $26 million from retrans deals in 2008. Other media companies -- News Corp.'s Fox network; Walt Disney's ABC and General Electric's NBC -- have been on the sidelines of this issue. Up until now.


Senate Commerce Committee
Tuesday, October 27, 2009
02:30 PM
SR - 253

Witnesses:

Lawrence E. Strickling
Assistant Secretary of Commerce for Communications and Information
National Telecommunications and Information Administration, U.S. Department of Commerce

Jonathan S. Adelstein
Administrator
Rural Utilities Service, U.S. Department of Agriculture

Mark Goldstein
Director, Physical Infrastructure Issues
U.S. Government Accountability Office



House Subcommittee on Communications, Technology, and the Internet
Thursday, October 22, 2009
10am
2123 Rayburn House Office Building

The hearing will focus on competition among video programmers, including access by multichannel video providers and consumers to programming via both television and the Internet.

INVITED WITNESSES:

Benjamin Pyne, President, Global Distribution, Disney Media Networks
Terrence K. Denson, Vice President, Corporate Marketing, Verizon
Patrick Knorr, Chief Operating Officer, Sunflower Broadband
Ronald D. Moore, Writer, Executive Producer
Thomas Rutledege, Chief Operating Officer, Cablevision Systems Corporation
Adam Thierer, President, Progress & Freedom Foundation



FCC Briefing Hill on Network Neutrality

Apparently, federal Communications Commission staff have briefed Senate and House Commerce Committee staffers on the proposal to expand and codify Internet openness guidelines and apply them to the wireless industry.

AT&T lobbyist asks employees, their families and friends to protest net neutrality rules

AT&T's top lobbyist, Jim Cicconi, sent a letter to all of the telecom giant's 300,000 employees on Sunday, urging them to express their concerns over a Network Neutrality proposal under consideration by the Federal Communications Commission. The letter was the latest move in a lobbying frenzy days before the FCC votes on a proposal to create new net neutrality regulations. High-tech giants wrote to the agency to support the rules, while dozens of lawmakers from both parties have protested the rules as potentially dangerous to economic growth. "We encourage you, your family and friends to join the voices telling the FCC not to regulate the Internet," Cicconi wrote in his letter.

In the letter, he offered these talking points:

1) America's wireless consumers enjoy the broadest range of innovative services and devices, lowest prices, highest usage levels, and most choices in the world. Why disrupt a market that's working so well?

2) There is fierce competition for wireless and broadband customers. Competition drives innovation and encourages companies to develop products, services and applications that consumers want. There's been more innovation in this market than in any since the World Wide Web was introduced. The market is working for consumers. Don't burden it with unnecessarily harmful regulations.

3) Network companies have to be able to manage their networks to ensure the most economical and efficient use of bandwidth, and provide affordable broadband services for all users. Network management is essential for consumers to enjoy the benefits of new quality-sensitive applications and services. The FCC rules should not stop the promise of life-changing, cost-saving services such as telemedicine that depend on a managed network.

4) The "net neutrality" rules as reported will jeopardize the very goals supported by the Obama administration that every American have access to high-speed Internet services no matter where they live or their economic circumstance. That goal can't be met with rules that halt private investment in broadband infrastructure. And the jobs associated with that investment will be lost at a time when the country can least afford it.

5) The FCC shouldn't burden an industry that is bringing jobs and investment to the country, but if it is going to regulate the Internet it should do so fairly. The goal of the FCC should be to maintain a level playing field by treating all competitors the same. Any new rules should apply equally to network providers, search engines and other information services providers.

Wireline Duopoly Losing its Bite As Comcast and Verizon Carve Up Broadband Terrain, Say Workshop Panelists

The Federal Communications Commission workshop on economic issues in broadband competition on October 9 brought together regulators and academics, who agreed that regulation of the broadband market would be difficult and different compared to old-style telecommunications. In answer to the question of whether "there a duopoly in the broadband market," almost everyone said "Yes." Judith Chevalier of Yale University, explained that while economic models do exist and can be useful they are not perfect. "There are big gaps between these models and the world we see." She said that there are too many variables for a truly perfect model to be created. Hence one must look at the market to predict the outcome of any regulation - and not just rely on a result from an econometric model. Echoing a refrain of almost every workshop, Chevalier said that in order to create a better model, "we need more and better data."

Sharing the Risks of Wireless Innovation

Advocates of Network Neutrality took the battle for control of the Internet into the wireless space in 2007 with the publication of Tim Wu's "Wireless Carterfone" paper on barriers to wireless application development. 100,000 applications later, the FCC and Congress are once again besieged with demands for free access to wireless data networks by all kinds of devices. Is the battle to put all devices on all networks beneficial (not to mention practical)? The use of diverse cellular technologies in the United States suggests that it's not, and the large trend in the wireless space from simple phones to smart, software-intensive platforms like the iPhone and the Palm Pre suggests that it's yesterday's war. Bennett analyzes trends in mobile technology and finds current regulations more than sufficient to promote continued innovation.

Clear Correlation Between Education and Adoption

The Federal Communications Commission says that it wants to ensure that the pending national broadband plan addresses the needs of minorities, and the October 2, 2009, workshop heard multiple perspectives on the subject, with a focus on "Diversity and Civil Rights." FCC Consumer Research Director John Horrigan said that there is a clear correlation between education level and adoption: those with less than a high school degree only have a broadband penetration rate of about 30 percent. Minorities are much more likely to access the Internet via mobile devices, he said, although the national average for all Americans is around 32 percent, while it is 47 percent for Hispanics. Although more Hispanics may access the Internet via mobile phones, such phones are generally prepaid and have limited Internet capabilities. The biggest barrier to adoption is the issue of relevance, with 50 percent of those using dial-up to access the Internet saying that they saw no reason to upgrade to a high-speed connection. The lack of available cited by a mere 17 percent. Another major barrier to access is simply not having a computer, or knowing how to properly use a computer.

How Users Took Over Twitter

In an amazingly short time, Twitter -- the messaging service which does little more than circulate bursts of text limited to 140 characters to a list of people who have chosen to receive them -- has established itself as a staple of social networking, commerce, electioneering, celebrity culture, public relations, media, and political protest. According to internal documents leaked earlier this year, the company expects to have 25 million active users by the end of 2009 and 100 million by the end of 2010. In 2013, it hopes to become the first Internet service to sign up 1 billion users. Can something as elementary as Twitter become an enduring pillar of the Internet? Perhaps. Twitter rocketed into the mainstream without really knowing what its service was. Its users defined it. It was those users who made Twitter into a throbbing global sensing organism that delivers instant opinion and eyewitness reporting on everything from presidential debates to football injuries. Though the company held a discussion earlier this year called "What Do We Want to Be When We Grow Up?" the mission statement is still a work in progress. "If there are three sentences I'd use to describe Twitter, one of them would be 'I don't know.'"

State of the Blogosphere 2009

The growth of the blogosphere's influence on subjects ranging from business to politics to the way information travels through communities continues to flourish. In a year when revolutions and elections were organized by blogs, bloggers are blogging more than ever, and the State of the Blogosphere is strong. Indeed, it's so strong that the attitudes held by bloggers don't differ very much by age or gender, or even across geographies — which is why we've decided to display the results of the survey according to four different types of bloggers:

1) Hobbyists. Representing 72% of the respondents to this survey, hobbyists say that they blog for fun. They don't make any money from their blogging - and only some would like to do so. More than any other group, though, Hobbyists say they blog to express their "personal musings" (53%). 71% update at least weekly, while 22% update daily. Because 76% blog to speak their minds, their main success metric is personal satisfaction (76%).

2) Part-Timers. The next largest cohort, at 15%, part-timers say they "blog to supplement their income, but don't consider it a full time job." 75% of them blog to share their expertise, while 72% blog to attract new clients for their business. Their business and personal motives for blogging are deeply entwined - while 61% say that they measure the success of their blog by the unique pageviews they attract, 60% say they also value personal satisfaction.

3) Self-Employeds. At 9% of respondents, self-employeds are in many ways the most professional of the cohorts. They say they "blog full time for their own company or organization," and 10% do report blogging 40 hours per week or more. 22% say that their blog is their company, while 70% say they own a company and blog about their business. Self-employeds also privilege page views (63%) over personal satisfaction (53%) as a success metric, and 53% are blogging more than when they started. Finally, in a demographic (bloggers) awash with Twitter users, self-employeds are the Tweetiest of them all — 88% say they use the service.

4) Pros. The smallest cohort, representing just 4% of respondents, pros say they "blog full-time for a company or organization" — though actually very few of them actually report spending a full 40 hours per week blogging. 46% are blogging more than they did when they started. 70% blog to share expertise; 53% blog to attract new clients for the business they work for. Accordingly, pageviews are the most important success metric for pros, valued by 69%, compared to 53% for personal satisfaction.