October 2009

BENTON'S COMMUNICATIONS-RELATED HEADLINES for MONDAY, OCTOBER 12, 2009 (HAPPY COLUMBUS DAY)

Sorry, we promised to take today off, but this got a to be a little too much to wait 'til tomorrow.

GOVERNMENT & COMMUNICATIONS
   Argentina Enacts Law on Broadcasters
   Fox's Volley With Obama Intensifying
   Freshman Reps Join CRS Openness Crusade

INTERNET/BROADBAND
   GAO: Current Broadband Measures Have Limitations
   Broadband Isn't Just the Web — It's Our Future
   Paying For A National Broadband Plan
   Economists to FCC: Wireless and Wired Broadband Are Equal
   With 2,200 applications, competition for billions in broadband stimulus dollars is intense
   FCC to Look Into AT&T Complaint Against Google
   Is AT&T targeting Google Voice to stop "traffic pumping"?
   Libraries Connect Communities: Public Library Funding & Technology Access Study
   FCC approves new trans-Pacific fiber-optic cable
   Telstra Assails Australia's Planned Telecom Changes
   Email No Longer Rules and what that means for the way we communicate

NETWORK NEUTRALITY
   FCC to Examine Network Connection Prices
   Does Net Neutrality Hurt Or Help Investments?
   Education advocates push for Network Neutrality

OWNERSHIP
   Media Moguls and Creative Destruction
   Does Comcast See The Writing on Cable's Slippery Wall?
   Wall Street may not like Comcast's bid for NBC Universal, but it could make sense
   Better targets than NBCU for Comcast
   Vivendi's plans may determine whether NBC Universal ends up in Comcast's hands
   Levinson leaves Google's board, stays on Apple's

ADVERTISING
   FTC Wants Full Disclosure in Ads
   FTC Wants To Clarify: Bloggers Probably Won't Get Dinged $11,000
   Web Ads Get Tangled in Cloak of Invisibility

WIRELESS
   Report details AT&T wait to break even on iPhones
   Why the End of AT&T's iPhone Exclusivity Would Be Good for Apple
   Google's Wireless Strategy Starts To Take Root
   Smartphone Data Revenue Climbs 31 Percent
   Lack of LTE Devices Worries Operators
   Thank Julius Genachowski for giving us a better mobile Internet

PRIVACY
   Safeguards to Protect Privacy and Personal Information Online

TELEVISION
   TV Stations offer mini-newscasts to grab attention-deficient viewers
   Select Nielsen Clients To Meet On Plan To Integrate Online Viewing Into TV Ratings
   Retrans Costs On The Rise
   Broadcasters Fight SHVERA Modifications
   Smoothing Out SHVERA
   McCain rebuffed on PBS construction funds
   2010 Census Communications Campaign

SMART GRID
   NIST Seeks Smart Grid Input
   Smart Grid Cyber Security Strategy

JOURNALISM
   Public Subsidies No Cure For Journalism

MORE ONLINE ...
   Tech takes home offices to extremes
   Google hopes to ride a social-networking Wave
   Census to Reveal Major Shift: No More Joe Consumer
   States Putting Squeeze on Ads to Raise Funds
   Plan calls for action on 21st-century skills
   How Democrats Won The Data War In 2008
   The Cyber Cure

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GOVERNMENT & COMMUNICATIONS

ARGENTINA ENACTS LAW ON BROADCASTERS
[SOURCE: New York Times, AUTHOR: Alexei Barrionuevo]
Argentina enacted a controversial law on Saturday that gives the government more control over the broadcast media, handing a victory to the president and her husband, the country's former leader, who have blamed media coverage they call biased for many of their political woes. After more than 19 hours of debate, the Senate approved the media bill early Saturday morning, by a vote of 44 to 24, without modifications. President Cristina Fernández de Kirchner had proposed the bill to replace a dictatorship-era law that allowed the concentration of media power in the hands of a few companies. The government said the changes, which include forcing companies to shed some of their media outlets, would diversify the public airwaves. President Kirchner signed the bill into law later in the day. The media law will divide up the airwaves, giving a third of broadcast licenses each to private companies, state broadcasters and not-for-profit organizations. It will also set quotas for how much time radio and television broadcasters need to set aside for government-sponsored programming.
benton.org/node/28725 | New York Times
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FOX'S VOLLEY WITH OBAMA INTENSIFYING
[SOURCE: New York Times, AUTHOR: Brian Stelter]
Attacking the news media is a time-honored White House tactic but to an unusual degree, the Obama administration has narrowed its sights to one specific organization, the Fox News Channel, calling it, in essence, part of the political opposition. "We're going to treat them the way we would treat an opponent," said Anita Dunn, the White House communications director, on Sunday. "As they are undertaking a war against Barack Obama and the White House, we don't need to pretend that this is the way that legitimate news organizations behave."Her comments are only the latest in the volatile exchange between the administration and the top-rated network, which is owned by the News Corporation, controlled by Rupert Murdoch. Last month, Roger Ailes, the chairman of Fox News, and David Axelrod, a senior adviser to President Obama, met for coffee in New York, in what Politico, which last week broke that news, labeled a "Fox summit." While neither party has said what was discussed, some have speculated that a truce, or at least an adjustment in tone, was at issue. (Ailes and then-Sen Obama reportedly reached a temporary accord after a meeting in mid-2008.) But shots are still being fired, which animates the idea that both sides see benefits in the feud.
benton.org/node/28724 | New York Times
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FRESHMAN REPS JOIN CRS OPENNESS CRUSADE
[SOURCE: CongressDaily, AUTHOR: Andrew Noyes]
Legislation to make Congressional Research Service reports publicly available was introduced in the House on Thursday by freshmen Reps Frank Kratovil (D-MD) and Leonard Lance (R-NJ). As public debate becomes increasingly partisan and polarized, "it is more important than ever for citizens to have full access to the same neutral, unbiased information that many of us rely on to help us formulate important decisions," Rep Kratovil said. rep Lance added that making taxpayer-funded research available to the American people is simply "good government." Over the past decade, a series of bills requiring public access to CRS reports has made little progress.
benton.org/node/28709 | CongressDaily
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INTERNET/BROADBAND

GAO: CURRENT BROADBAND MEASURES HAVE LIMITATIONS
[SOURCE: Government Accountability Office, AUTHOR: Mark Goldstein]
The Broadband Data Improvement Act required Government Accountability Office to conduct a study to consider and evaluate additional broadband metrics or standards. GAO focused on 10 measures that can be used to make international comparisons of broadband service to inform policy. Eight were composite indexes that are generally used to account for factors such as demographic and economic differences among countries, which, according to stakeholders, can affect broadband deployment and penetration (the number or percentage of subscribers per capita or per household). Through available documentation and discussions with stakeholders, GAO found that current measures have limitations, views were mixed on potential alternatives, and ongoing efforts need improvement. To increase the data quality and subsequent results from the State Broadband Data and Development Grant Program, including a searchable nationwide inventory map of existing broadband service capability and availability in the United States, we recommend the Secretary of Commerce examine the first round of data collection and determine whether to develop specific guidance for grantees to improve the consistency and accuracy of the data collected under the program.
benton.org/node/28674 | Government Accountability Office | Highlights | BroadbandCensus.com
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BROADBAND ISN'T JUST THE WEB
[SOURCE: GigaOm, AUTHOR: Stacey Higginbotham]
[Commentary] The Federal Communications Commission is working on what, in essence, is not a National Broadband Plan, but a National Communications Plan. And it isn't just about providing access to the web. It's about creating an infrastructure to link the country in much the same way that copper wires and phones linked the U.S. during the last century. We may look down on that network now, but millions of Americans still use it and it's served as the foundation upon which the web as we know it today has been built. Still, thanks to the fragmented nature of the technologies and types of businesses that deliver broadband, that idea of a unified communications infrastructure (as well as the need for it) is fading. Broadband, from the last mile that connects our homes to the long haul networks that move the traffic around the world, is our voice, our video, our web and our connection to one other. Our shared last mile networks are the party line equivalent of the telephone system for this century, and the FCC needs to help create regulations that take such a reality into account. No, getting broadband to everyone isn't a profitable proposition for the carriers, but the U.S. has a responsibility to make it happen.
benton.org/node/28690 | GigaOm
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PAYING FOR A NATIONAL BROADBAND PLAN
[SOURCE: App-Rising.com, AUTHOR: Geoff Daily]
How will we pay for the goals set in the National Broadband Plan? We need to acknowledge that private providers alone may not have the capacity to invest that much money on their own over the next few years. They've already sunk a lot of money into their existing networks, and for the most part are only looking to incrementally upgrade. Plus they have a fiduciary responsibility to their shareholders to be prudent in what they do invest in, which is why rural areas are often left behind. That's why we need to make sure the conversation about how to pay for an ambitious national broadband plan focuses more on answering the question of how do we make broadband a more attractive investment for private capital sources, regardless of who's doing the deployment.
benton.org/node/28689 | App-Rising.com
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ECONOMISTS TO FCC: WIRELESS AND WIRED BROADBAND ARE EQUAL
[SOURCE: GigaOm, AUTHOR: Stacey Higginbotham]
[Commentary] On Friday, economists at a Federal Communications Commission National Broadband Plan workshop debate how the wireline duopoly affects the market for broadband in the US and the majority of speakers insisted that when it comes to broadband access regulators need to also look at the wireless market. While typically a region will be served by one DSL provider and one cable provider, explained Marius Schwartz, a professor of economics at Georgetown University, there are also four national wireless carriers that can provide broadband service as well. If the FCC is going to view the wireless providers as a true nationwide substitution for wired broadband, then Higginbotham supposes it's good that it's trying to bring the same set of rules and standards for Network Neutrality to play for wireless operators. However, believing that wireless is a credible substitute for wired broadband is like believing that Molly McButter's powdered flakes are a credible substitute for the real thing.
benton.org/node/28700 | GigaOm
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2,200 BTOP APPLICATIONS
[SOURCE: Associated Press, AUTHOR: Joelle Tessler]
The federal government will soon start handing out the first $4 billion from a pot of stimulus funds intended to spread high-speed Internet connections to more rural communities, poor neighborhoods and other pockets of the country clamoring for better access. The challenge is that the government has received $28 billion in requests. So the reviewers at the Commerce and Agriculture Departments who will award the broadband money must make hard choices. The 2,200 applications each envision something different — more fiber-optic lines, for example, or computer labs or municipal wireless networks. But they all promise that their proposals will create jobs and bring new economic opportunities. It's too soon to know which plans will win federal grants or loans, either in this round of funding or in the next, as the total broadband stimulus expands to $7.2 billion. Those that do get picked may not get the full amount they are seeking. Tessler provides snapshots of four projects representing a cross section of the broadband stimulus hopefuls: the Coeur d'Alene Indian tribe, Clearwire, Mountain Area Information Network, and the city of Philadelphia.
benton.org/node/28711 | Associated Press
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FCC TO LOOK INTO AT&T COMPLAINT AGAINST GOOGLE
[SOURCE: Associated Press, AUTHOR: ]
The Federal Communications Commission on Friday wrote to Google requesting information about its Voice service, which lets people sign up for one number that can route incoming calls to a cell, office or home phone. Is Google Voice just another online service — like search or Google Maps — or is it a phone service? That question is at the heart of the FCC's inquiry. Google Voice allows consumers to use one Google-issued number for home, office and cell. The free service also transcribes voice mail and offers unlimited free texting. Among other things, the FCC asked Google to explain how Google Voice allows users to place calls, and whether calls to particular telephone numbers are restricted. Google has until Oct. 28 to respond. The letter was sent by the FCC's wireline bureau, which oversees AT&T and other telecoms. The missive came on the heels of a letter — signed by more than 20 members of Congress — asking the agency to investigate. If the FCC determines that Google Voice is, indeed, a phone service, the Web giant could wind up being subjected to some of the same requirements as traditional carriers. Public Knowledge President Gigi Sohn said, "The FCC's Wireline Competition Bureau today asked some very legitimate questions about the nature of Google Voice, beginning an inquiry that PK Legal Director Harold Feld on Oct. 1 urged the Commission to undertake. In trying to determine how the service works, and what place it has in telecommunications law, the Commission is starting down a worthwhile path to examine the changing nature of today's telecommunications service. That inquiry should be more far-reaching than this relatively isolated case. We learned recently that another VoIP provider, Speakeasy.com, reserved the right to block calls to rural areas. We should be clear that the Commission's inquiry has nothing to do with issues of an open, non-discriminatory Internet, as AT&T alleged when it brought the issue of Google Voice to the Commission's attention last month. Neither does it have anything to do with denying service to rural customers, as others have said. It has to do with the clash between traditional telephone services and new technological realities. We urge the Commission to act quickly to resolve these difficult issues."
benton.org/node/28721 | Associated Press | FCC | USAToday | FT | Public Knowledge
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IS AT&T TARGETING GOOGLE VOICE TO "TRAFFIC PUMPING"?
[SOURCE: ars technica, AUTHOR: Matthew Lasar]
Google is grumpy about an AT&T-prompted Federal Communications Commission letter asking the company to explain the feature's call-restricting policies. But it may be that AT&T really just wants action on a dubious business technique called "traffic pumping" or "access stimulation." The FCC's intercarrier compensation rules require the big telcos to pay the smaller carriers certain access fees to complete calls through their often rural networks. That's reasonable because making rural phone service profitable is often an uphill battle, but there are some pretty sweet ways for small services to game the system.
benton.org/node/28720 | Ars Technica
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LIBRARIES CONNECT COMMUNITIES
[SOURCE: American Library Association, AUTHOR: Denise Davis, John Carlo Bertot, Charles McClure]
America's 16,592 public library buildings provide communities of all sizes free access to computers and the Internet; formal classes and informal staff assistance using these technology assets; a wide range of Internet services including homework resources, digital reference and e-books; and wireless access to the Internet. Additional key findings include: 1) Libraries serve a unique and important role in providing free access to all types of information and telecommunications services. Just over 71 percent of libraries report that they are the only source of free access to computers and the Internet in their communities. Library staff report an increase in the use of library computers and Internet access for job-seeking and e-government purposes. 2) In a time of widespread economic turmoil, 14.3 percent of public libraries report decreased operating budgets in FY2009. Only 38 percent of libraries report budget increases at or above the rate of inflation. More than half (53 percent) of the state library agencies that provide state funding to public libraries report declining state funding in FY2009, according to questionnaires to the Chief Officers of State Library Agencies (COSLA). 3) Public libraries are investing in and improving Internet access speeds, but they still find patron demands are growing faster than their ability to increase bandwidth. Nearly 60 percent of libraries report Internet connection speeds are insufficient to meet needs at some point in the day. Achieving sufficiency of public access to computers and the Internet is an elusive goal.
benton.org/node/28694 | American Library Association
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FCC APPROVES NEW TRANS-PACIFIC FIBER-OPTIC CABLE
[SOURCE: San Jose Mercury News, AUTHOR: John Boudreau]
The Federal Communications Commission has given the green light for a trans-Pacific fiber-optic cable funded by an international consortium that includes Google. The new cable, expected to be carrying data traffic by early next year, links the West Coast and Asia to meet the demand for more bandwidth to handle explosive global Internet communications. The FCC's go-head this week means the soon-to-be completed cable can now come ashore in Redondo Beach (CA). The Department of Homeland Security signed off on the plans Sept. 23. The 6,200-mile cable, costing about $300 million, is being funded by six companies that, in addition to Google, include telecommunications companies Bharti Airtel in India, SingTel of Singapore and Pacnet, a Hong Kong-based deep-sea fiber-optic cable network operator. The new cable will tap into two-thirds of all networks in Asia. Pacnet, the largest investor in the consortium (dubbed Unity) will control two of the five fiber pairs in the new cable. A fiber is about the size of a single human hair. Each pair of fiber cables is capable of carrying up to 960 gigabytes per second, roughly the amount needed for 15 million simultaneous voice calls. The cable is expected to initially increase transpacific "lit" cable capacity by about 20 percent, and could potentially add up to 7.68 terabytes per second of bandwidth.
benton.org/node/28688 | San Jose Mercury News
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TELSTRA ASSAILS AUSTRALIA'S PLANNED TELECOM CHANGES
[SOURCE: Wall Street Journal, AUTHOR: Lyndal McFarland]
Telstra said the Australian government's planned changes to telecommunications legislation would destroy shareholder value and create uncertainties over the country's planned 43 billion Australian dollar (US$38.87 billion) national broadband network. Last month, the Australian government unveiled proposed amendments to telecommunications laws that would see Telstra either voluntarily split its retail and wholesale networks or face tighter regulations, create the potential for forced asset sales, and be barred from buying new mobile spectrum. Communications Minister Stephen Conroy has said the changes are aimed at improving competition in the fixed-line broadband sector ahead of the rollout of the planned national broadband network.
benton.org/node/28722 | Wall Street Journal
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EMAIL NO LONGER RULES AND WHAT THAT MEANS FOR THE WAY WE COMMUNICATE
[SOURCE: Wall Street Journal, AUTHOR: Jessica Vascellaro]
While email continues to grow, other types of communication services are growing far faster. In August 2009, 276.9 million people used email across the US, several European countries, Australia and Brazil, according to Nielsen, up 21% from 229.2 million in August 2008. But the number of users on social-networking and other community sites jumped 31% to 301.5 million people. "The whole idea of this email service isn't really quite as significant anymore when you can have many, many different types of messages and files and when you have this all on the same type of networks," says Alex Bochannek, curator at the Computer History Museum. We all still use email, of course. But email was better suited to the way we used to use the Internet—logging off and on, checking our messages in bursts. Now, we are always connected, whether we are sitting at a desk or on a mobile phone. The always-on connection, in turn, has created a host of new ways to communicate that are much faster than email, and more fun. Why wait for a response to an email when you get a quicker answer over instant messaging?
benton.org/node/28717 | Wall Street Journal
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NETWORK NEUTRALITY

FCC TO EXAMINE NETWORK CONNECTION PRICES
[SOURCE: Dow Jones, AUTHOR: Fawn Johnson]
Federal Communications Commission Chairman Julius Genachowski has pledged to open an inquiry into the prices telecom firms charge others for the network capacity needed to transfer phone calls and Internet exchanges, signaling that further regulation of that market may be on the horizon. In a letter sent to Sen. Daniel Inouye (D-Hawaii), Chairman Genachowski said the FCC will issue a public notice within the next 30 days seeking comment on the "appropriate analytical framework" for examining the network pricing structure. Curbing the prices for the network connections is a top priority of Sprint Nextel, T-Mobile USA, US Cellular and several smaller phone companies that claim they are being gouged by high connection prices from giants like Verizon Communications and AT&T. Sprint says one-third of its operating costs for each cell tower are devoted to those access charges.
benton.org/node/28695 | Dow Jones
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DOES NET NEUTRALITY HURT OR HELP INVESTMENTS?
[SOURCE: Washington Post, AUTHOR: Cecilia Kang]
Will Network Neutrality hurt or help the economy? Amid a stubborn recession, that question will take center stage as critics and proponents debate how new rules at the Federal Communications Commission would impact investments in the Web. At a high level, the arguments are straight forward. But the details supporting those views -- which will likely be debated for months at the FCC -- become vastly more complicated. FCC Chairman Julius Genachowski and proponents of new rules say the next Google or Amazon being cooked up in some garage may not see the light of day if a policy isn't put in place that ensure they'll make it on the Web. Opponents of his plan say ISPs need flexibility to manage their network traffic and keep down costs. They want to make sure some bandwidth hogs aren't ruining the experience for other consumers. And shareholders need to be assured they will get a return on their investments without the uncertainty of new regulations. Blair Levin, a former Wall Street analyst who is now heading the FCC's creation of a National Broadband Plan, said at a 2006 Senate Judiciary Committee hearing on telecommunications competition that regulation doesn't move the needle on investments. The promise of a competitive marketplace, however, can be a bigger incentive for investment, he said. "Ultimately, to serve the goal of stimulating a rising standard of living for Americans, the challenge for government is to assure a broadband environment characterized by survival of the fittest, as selected by the market, rather than survival of the friendliest, as selected by the network owners or government," he said.
benton.org/node/28723 | Washington Post
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EDUCATION ADVOCATES PUSH FOR NET NEUTRALITY
[SOURCE: eSchool News, AUTHOR: ]
Educators say a neutral Internet is a key in developing and delivering online content to distance learners and students in rural areas, and an unregulated Internet would create unfair advantages for large universities that could pay more for faster, more efficient web service. Wendy Wigen, a government relations officer for higher-education technology advocate EDUCAUSE, said failure to pass a Network Neutrality law would mean the country's largest universities could pay telecommunications companies for preferential treatment, while small community colleges without similar financial means would be at a distinct disadvantage. "[Colleges] could pay to be in the fast lane," Wigen said. "These managed services would take over what we think of as the public Internet. ... The idea that our content would be discriminated against is disturbing, to say the least. We don't want whoever pays the most [to get] the best treatment."
benton.org/node/28702 | eSchool News
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OWNERSHIP

MEDIA MOGULS AND CREATIVE DESTRUCTION
[SOURCE: Wall Street Journal, AUTHOR: L. Gordon Crovitz]
[Commentary] For media, this is the best of times and the worst. The best because the cost to publish news, make a video or distribute a song has never been lower. But also the worst because it's hard to find a company, new or old media, that has emerged with a sustainable business model. Consumers are left wondering how much longer their favorite sources of news and entertainment will be around. Content creators from musicians to authors can sidestep the middlemen who were once required to package and deliver the content. This means that as consumers, we have unprecedented choice in many areas. Media companies also have options. They can become more efficient, find new revenue streams from their most engaged consumers, and add new services. Still, no one knows which brands will survive in a world where the traditional advantages are the new disadvantages and where so many new-media companies don't survive the pace of change they helped accelerate. The challenge for all media—old and new—is the same, even if the difficulty level is higher than ever before: Focus on what makes each brand different and more valuable than the ever-increasing number of alternatives that technology makes inevitable.
benton.org/node/28719 | Wall Street Journal
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DOES COMCAST SEE THE WRITING ON THE WALL?
[SOURCE: BusinessWeek, AUTHOR: Ron Grover]
Want to know the real reason that Comcast (CMCSA) is looking to strike a deal to gain control of NBC Universal from General Electric? Cable TV may well have seen its best days. Cable operators are estimated to lose 3.5 million subscribers over the next four years. And research firm Kagan predicts that 7.1 million folks will get their TV from online sources rather than cable in 2012 and that those numbers will double by 2019. You can imagine that Comcast wants to get its hands on a major video content creator like NBC before that happens. In addition to providing content for new technologies like telcos and the Internet, NBC is also a founder of the Hulu online TV site. According to numbers supplied by Comscore, Hulu delivered more than 488 million videos in August to 38 million online viewers. That's more than a three-fold increase from a year earlier. Growth of that sort would be welcome news to Comcast, which is likely looking for a way to offset the slowing growth in its cable business.
benton.org/node/28687 | BusinessWeek
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DOES COMCAST BID MAKE SENSE?
[SOURCE: BusinessWeek, AUTHOR: Ronald Grover, Tom Lowry]
It's become an almost Pavlovian response among Wall Street analysts and money managers: holding their noses when an executive proposes bringing content (movies and TV shows) and distribution (cable, satellite, and Internet) under one roof. But the NBCU deal could give a slowing Comcast a significant lift. People with knowledge of Comcast CEO Brian Roberts' thinking single out NBC's sports assets. The Peacock Network controls the rights through 2012 for the Olympics and through 2013 for Sunday night National Football League games. With NBC's high-end sports, Roberts could build Comcast's smallish Versus sports channel into a bigger player. And with the NFL as a partner, Roberts could be in a position to pressure the league to cut him in on an even more robust deal to carry more football games. With NBC, Roberts will "have effectively created a potent competitor to ESPN," says Neal Pilson, a former CBS sports executive who now consults. Pilson figures Comcast will use NBC Sports' national platform to complement its 11 regional sports networks, which include major markets such as New York, Chicago, Philadelphia, and San Francisco. Throw in Comcast's Golf Channel and Versus, which has college football and pro hockey games, and the new entity clearly would give agita to executives at ESPN headquarters.
benton.org/node/28686 | BusinessWeek
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BETTER TARGETS THAN NBCU FOR COMCAST
[SOURCE: New York Post, AUTHOR: Peter Lauria]
Comcast clearly craves content, but some analysts and investors think there are better companies to go after than NBC Universal. Comcast followers worry that the cable giant is rushing into a deal with NBCU simply because it's available. What Comcast wants most, the thinking goes, is NBCU's cable channels and production studio -- not the theme parks, broadcast network, or local television stations. There are companies that could become available in the next 12 months to 24 months that would be a better fit, some say. "If Comcast is willing to be aggressive and commit capital to the content business, then they should be looking at the full menu of properties, including Viacom, Time Warner, Scripps and Discovery," said Gabelli & Co. analyst Chris Marangi. "Viacom has everything Comcast wants and none of what it doesn't want."
benton.org/node/28685 | New York Post
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VIVENDI'S PLANS MAY DETERMINE NBCU-COMCAST
[SOURCE: Los Angeles Times, AUTHOR: Meg James, Ben Fritz]
It may own a mere 20% of NBC Universal, but Vivendi is calling the shots when it comes to whether the fabled movie studio and television company will end up in the hands of cable company Comcast Corp. or some other buyer. That's because every year in November, Vivendi can opt to sell its stake. There's also a little-known clause in the contract between Vivendi and General Electric Co., which owns 80% of NBC Universal, that gives the French media conglomerate veto power on any change in control. Whether Vivendi decides to pull the trigger depends on a host of complicated factors, including the strength of the U.S. dollar and Vivendi's appetite to make bold bets. Vivendi probably would use the proceeds from the sale of its NBC Universal stake -- valued at $5 billion to $7 billion -- to finance acquisitions in video games and telecommunications, where it already is a major player. And until a few days ago it looked like Vivendi had a use for that money: It was on the cusp of buying a Brazilian telecommunications firm until that deal was thrown into doubt by the emergence of a rival bidder offering more money.
benton.org/node/28714 | Los Angeles Times
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LEVINSON LEAVES GOOGLE'S BOARD, STAYS ON APPLE'S
[SOURCE: Associated Press, AUTHOR: ]
Google said Monday that a board member who also serves as a director for computer maker Apple is stepping down, removing a potential conflict of interest as the two companies look to compete more directly. Arthur Levinson, chairman of the biotech company Genentech and a Google board member since April 2004, resigned effective immediately. The growing overlap in Google's and Apple's products had spurred the Federal Trade Commission to look into Schmidt's duel role, concerned about the potential for the two companies to cooperate in a way that would reduce competition. After Schmidt stepped down from Apple's board in August, the FTC said it would continue to examine Levinson's ties at the companies.
benton.org/node/28712 | Associated Press | Washington Post | CNNMoney.com
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ADVERTISING

FTC WANTS FULL DISCLOSURE IN ADS
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
Guideline changes issued by Federal Trade Commission will toughen policy on everything from endorsements to disclaimers to financial relationships with product companies. The move will undoubtedly put a crimp in on-air and marketing plans. Marketers were once safe to use before-after photos in weight-loss ads, so long as they included the now-familiar disclaimer that results could vary, must now point out what typical weight losses would be. In addition, bloggers who test and endorse products must disclose their financial relationships to the companies, and stars who talk up items or services on TV talk shows must come clean about any ties they have to the marketers or makers.
benton.org/node/28708 | Broadcasting&Cable
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FTC FINES
[SOURCE: Washington Post, AUTHOR: Cecilia Kang]
Will violations of the Federal Trade Commission's new endorsement guidelines really cost $11,000? Richard Cleland, assistant director for the division of advertising practices, wants to clarify. What's important for people to know, he said, is that the FTC doesn't directly hand out fines and that it is very unlikely that any case would get to the point. He said the FTC would most likely send an warning letter to a blogger who pitches but doesn't disclose receiving funds. "We do not have authority to impose a fine for violation of the (FTC) Act," said Cleland. If things escalate, he said, the FTC could take it to the courts, which could lead to a series of events that eventually lead to a fine. "The confusion has arisen, I think, because we do have authority to ask for a civil penalty to be imposed by the Federal district court judge in the event that trade regulation rules are violated," he said. "I have to tell you that there is no realistic scenario that we get from here to there."
benton.org/node/28684 | Washington Post
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WEB ADS GET TANGLED IN CLOAK OF INVISIBILITY
[SOURCE: Wall Street Journal, AUTHOR: Emily Steel]
Kraft Foods, Greyhound Lines and Capital One Financial have bought some strange ads on the Internet lately. What's so strange about them is that they're invisible. The companies might not have known about their invisible display ads—the kind that are supposed to appear alongside content on Web pages—if not for Ben Edelman, an assistant professor at Harvard Business School who studies Internet advertising. Edelman says his research shows that all three marketers, and many others, have fallen victim to Web sites that use such ads as a way to sell more ad space than they have. The Web sites can get away with it, he says, because online advertisers don't always audit their campaigns for proof their ads are appearing. It isn't clear how common these ads are or how much they cost marketers.
benton.org/node/28718 | Wall Street Journal
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WIRELESS

REPORT DETAILS AT&T WAIT TO BREAK EVEN ON IPHONES
[SOURCE: C-Net|News.com, AUTHOR: Lance Whitney]
With its large subsidies to Apple, AT&T doesn't break even on iPhone accounts with high data-usage until the 17th month of a 24-month contract, according to a new report from Yankee Group. The report looks at the downside of subsidies paid to manufacturers by cell phone carriers. The report cites AT&T's iPhone contract with Apple as a prime example. Subsidies have typically helped mobile carriers offer customers free or low-cost devices in order to lure them into buying long-term service contracts. Smartphone owners are happy because they're getting the latest devices at rock-bottom prices. But the surge in data use and the rising cost of grabbing new customers are cutting profit margins for providers, says Yankee Group.
benton.org/node/28683 | C-Net|News.com
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WHY THE END OF AT&T'S IPHONE EXCLUSIVITY WOULD BE GOOD FOR APPLE
[SOURCE: GigaOm, AUTHOR: Sebastian Rupley]
AT&T's exclusive deal with Apple as the U.S. carrier for the iPhone expires next year, and there are signs that the arrangement between the two companies will then end. Such a move would bode very well indeed for the entire Apple ecosystem, from iPhone users to application developers. Apple itself, of course, stands to benefit the most. iPhone sales in the US could double if Apple ended its exclusive contract with AT&T.
benton.org/node/28699 | GigaOm
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GOOGLE'S WIRELESS STRATEGY STARTS TO TAKE ROOT
[SOURCE: Wall Street Journal, AUTHOR: Jeffrey Bartash]
Already a fixture on most computers, Google has taken an important step to become a mainstay on wireless phones, too. In a potentially big breakthrough, Verizon Wireless said this past week that it would use Google's Android software on some of its devices, while unconfirmed reports indicate the Internet-search giant could soon enter a relationship with AT&T. Verizon Wireless and AT&T are the two largest mobile-phone companies in the U.S., with more than 160 million customers combined. Google has been trying for several years to get the companies to adopt Android, an operating system designed to make wireless phones very easy to use. The goal of Google is not necessarily to make money from the software, but to extend its presence beyond the world's roughly 2 billion Internet-connected computers. As more Internet traffic shifts to wireless networks, Google wants to make sure people are using its software on mobile devices. "They want to lock people into the Google world," said wireless analyst Tero Kuittinen of MKM Partners. "They are literally giving Android away."
benton.org/node/28716 | Wall Street Journal
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SMARTPHONE DATA REVENUE CLIMBS 31 PERCENT
[SOURCE: PC Magazine, AUTHOR: ]
CTIA's annual survey has found that revenue derived from data plans climbed 31 percent to over $19.4 billion in the first half of 2009, versus the same period a year ago. The CTIA's survey also showed steady growth for wireless subscribers, cell towers, and total revenues. According to the CTIA, however, the average cell-phone bill remained flat with last year, and has basically remained so since June of 2003. In total, there were 276 million wireless users in June 2009, up from 263 million a year ago. All told, the cellular industry raked in more than $75.8 billion for the first six months of 2009, versus $72.7 billion in 2008. CTIA found that more than 246 million data-capable devices are being used, with 40 million smartphones or PDAs and another 10 million 3G cards.
benton.org/node/28676 | PC Magazine
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LACK OF LTE DEVICES WORRIES OPERATORS
[SOURCE: IDG News Service, AUTHOR: Mikael Ricknäs]
The LTE (Long-Term Evolution) modems shown at ITU Telecom World are still very much under development and will be ready to ship toward the end of next year, according to vendors. ZTE has provided the most detailed specifications of its upcoming modems. Currently, it's waiting for Qualcomm to start shipping the commercial chipsets. That will happen in September, which will leave it just enough time to get products out before the end of the year, said Xiaodong Zhu, CTO at ZTE in Western Europe, in an interview at the telecom conference. But the operators aren't convinced that ZTE and the other modem manufacturers will be able to do that. A unanimous panel of operators, including AT&T, NTT DOCOMO and Telefónica, voiced concerns about their ability to have devices ready by the end of next year.
benton.org/node/28697 | IDG News Service
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THANK JULIUS FOR BETTER MOBILE INTERNET
[SOURCE: Slate, AUTHOR: Farhad Manjoo]
[Commentary] Close observers of the wireless industry might be wondering whether this was opposite week. Since when do mobile carriers go out of their way to offer their customers more functions and substantially cheaper service? That's easy: Since the end of June, when Julius Genachowski became chairman of the Federal Communications Commission. He's the most technologically aware FCC chairman ever to occupy the job. In particular, he understands what has made the Internet such a successful platform for innovation: It was designed to avoid favoring any particular application. In the few months since he took over the FCC, Genachowski has set a new tone for the agency, promising to rein in any companies that try to restrict what people can do on their Internet lines. In August, he surprised the tech industry by demanding an explanation from Apple for its rejection of Google Voice. Late in September, he argued for new rules to make sure Internet service providers obey the FCC's network-neutrality principles.
benton.org/node/28696 | Slate
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PRIVACY

SAFEGUARDS TO PROTECT PRIVACY
[SOURCE: Federal Communications Commission, AUTHOR: Press release]
As part of National Cyber Security Awareness Month, Federal Communications Commission (FCC) Chairman Julius Genachowski and Federal Trade Commission (FTC) Chairman Jon Leibowitz encouraged the public to take steps to protect themselves, their privacy, and their personal information online. The Internet has connected Americans to each other and the rest of the world like never before. But those connections can also be exploited by scammers, so consumers need to be alert for online fraud and safeguard their personal information. To promote cyber safety outreach and education, the FCC recently partnered with OnGuardOnline.gov, a joint effort of 12 federal agencies and 18 non-government organizations, developed and managed by the FTC. OnGuardOnline.gov provides practical and timely tips to help consumers be on guard against Internet fraud, secure their computers, and protect their personal information. Among the recommendations that consumers should follow: 1) Use security software that updates automatically; 2) Keep operating systems and Web browsers up-to-date; 3) Keep passwords private and secure; and 4) Always Back-up important files. OnGuardOnline.gov features guidance, entertaining games and quizzes on a variety of topics, including phishing, social networking, laptop security, and wireless access, and has a special section about protecting kids online. Indeed, the site features a new guide, Net Cetera: Chatting with Kids About Being Online with tips about talking to kids, tweens and teens about the risks of inappropriate conduct, contact and content.
benton.org/node/28682 | Federal Communications Commission
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JOURNALISM

PUBLIC SUBSIDIES NO CURE FOR JOURNALISM
[SOURCE: TVNewsCheck, AUTHOR: Harry Jessell]
[Commentary] Despite his reliance on National Public Radio, Jessell is troubled by the idea of the federal government pumping more money into public media, particularly the local variety. He doesn't see publicly-funded media as the solution to our journalism woes. For one thing, public media cannot be the counterbalance to government at any level, a terribly important role for journalism in sustaining democracy in any age. The watchdog of the government cannot rely on government for a good portion of its care and feeding. Journalists covering government must maintain their independence. It also seems that handing over more government cash to public media so that they can do more local reporting would simply aggravate the troubles of the local legacy media. The last thing newspapers and TV stations need right now is more competition for the attention of consumers and for the marketing dollars of businesses. (Those underwriting dollars that public stations boast of are advertising dollars in disguise.)
benton.org/node/28710 | TVNewsCheck
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