October 2009

Report details AT&T wait to break even on iPhones

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.

Safeguards to Protect Privacy and Personal Information Online

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.

Select Nielsen Clients To Meet On Plan To Integrate Online Viewing Into TV Ratings

Nielsen has invited a small group of its most influential clients to participate in a "special meeting" next week to discuss how it should handle the way it measures and reports viewing of conventional TV programming accessed via online media. The Oct. 16th meeting comes as Nielsen has already begun measuring online behavior in some households in its national TV ratings sample, and as Nielsen contemplates expanding that to its entire sample and formally integrating online viewing of TV programming into its official ratings currency. The meeting, which is separate from a series of conventional national client meetings being held in New York and Los Angeles next week, was characterized by Nielsen executives has having the same importance a seminal meeting it held in the fall of 2006 to determine how to incorporate time-shifted viewing data into its national TV ratings currency. The outcome of that meeting culminated in the creation of the so-called C3 ratings that are currently used by advertisers and agencies to negotiate their national TV advertising buys.

Broadcasters Fight SHVERA Modifications

The debate about which broadcast signals satellite operators can carry into each designated market area continued this week on Capitol Hill. Broadcasters want to keep a lid on signal importation from outside markets to protect incumbent stations. Satellite operators can import distant signals to households that have no local, over-the-air reception, but they want more flexibility for several reasons, including leverage in retransmission negotiations with broadcasters. This distant signal issue has been at the heart of each renewal of the Satellite Home Viewer Extension and Reauthorization Act (SHVERA) due again this year. "If a cable or satellite system serving one community is permitted to import the same programming from distant, out-of-market stations, the viewing audience of the local station will be fragmented--advertising rates will plummet--and the ability of local television stations to provide costly local news, weather, emergency information, and local public affairs programming will, plainly, be diminished," National Association of Broadcasters TV Board Chairman Paul Karpowicz told the Senate Commerce communications subcommittee during a hearing on Wednesday.

NIST Seeks Smart Grid Input

The National Institute of Standards and Technology (NIST) seeks two categories of comments on the draft NIST Framework and Roadmap for Smart Grid Interoperability Standards, Release 1.0: (1) Comments on the overall document and the contents of all chapters, except Chapter 4, Standards Identified for Implementation; and (2) Comments on the 15 additional ''Standards Identified for Implementation" (Chapter 4); the NIST proposed "Guidance for Identifying Standards for Implementation"; and recommendations for adding or removing standards and specifications on the list of standards identified for implementation (Table 2), referencing relevant guidance criteria. In addition, NIST requests comments on the standards in Table 3—additional standards NIST has identified for further review. Comments must be received on or before November 9, 2009.

Smart Grid Cyber Security Strategy

The National Institute of Standards and Technology (NIST) seeks comments on draft NISTIR 7628, and Requirements. This initial draft of the document contains the overall security strategy for the Smart Grid. Contents include: Development of vulnerability classes, identification of well understood security problems that need to be addressed, selection and development of security-relevant use cases, initial privacy impact assessment, identification and analysis of interfaces identified in six functional priority areas, advanced metering infrastructure (AMI) security requirements, and selection of a suite of security documents that will be used as the base for determining and tailoring security requirements. This is the first draft of NISTIR 7628; NIST plans to post a subsequent draft of this report for additional public comments. Comments must be received on
or before December 1, 2009.

McCain rebuffed on PBS construction funds

With hopes of finishing the $64.9 billion fiscal 2010 Commerce-Justice-Science Appropriations bill fading Thursday, the Senate defeated, 64-33, an amendment offered by Sen. John McCain (R-AZ), that would have eliminated $20 million in funding for the Public Telecommunications Facilities Planning and Construction program. The program awards competitive grants that help public broadcasting stations, state and local governments, Indian tribes and nonprofit organizations bring educational and cultural programming to the public using telecommunications technologies. The program received $20 million for fiscal 2009, but the White House recommended it receive no funding for the fiscal year. McCain argued that the funds are not needed because the job for which it was designed has been completed. Senate Commerce-Justice-Science Appropriations Subcommittee Chairwoman Barbara Mikulski (D-MD) opposed the amendment because the program helps local public television station to modernize.

Smartphone Data Revenue Climbs 31 Percent

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.

2010 Census Communications Campaign

In order to inform everyone about the 2010 Census and its importance, the Census Bureau has developed an integrated communications campaign (ICC) that includes paid media, earned media, a national partnership program and the Census in Schools program. The three goals of the ICC are: 1. Increasing mail response, 2. Improving accuracy and reducing the differential undercount, 3. Improving cooperation with enumerators DraftFCB and their partner agencies have developed the Paid Media Plan to make the 2010 Census the most pervasive message everywhere, especially during the mail-out/mail-back phase in March and April 2010. The Plan was created with the work of eight partner media agencies, will encompass multiple languages and reach into every market across the U.S. and Puerto Rico. All media vendors will have a fair opportunity to submit proposals via a questionnaire. This questionnaire and other request for proposals will be part of the buying process. If you are interested in participating, please fill out the following questionnaire. The deadline to submit your information is: October 15, 2009.

GAO: Current Broadband Measures Have Limitations

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:

According to some stakeholders, the lack of comprehensive measures from the government to compare price, actual delivered speeds, and service reliability data from providers is a limitation for consumers. FCC has open proceedings on requiring providers to report such information, but there was no consensus among stakeholders on the need for additional reporting requirements and measures.
Stakeholders told GAO that FCC's semiannual data collection from providers does not include information on availability, price, or actual delivered speeds, which limits the ability to make comparisons across the country and inform policy or investment decisions. Stakeholders generally agreed that the Department of Commerce's effort to develop a national broadband inventory map through its State Broadband Data and Development Grant Program would address some gaps and provide detailed data on availability, subscribership, and actual delivered speeds, but the department did not provide guidance to grantees on calculating actual delivered speeds or specific standards to verify the data collected. This could result in inconsistent data and limit the effectiveness of the effort. GAO has previously reported that consistency and data verification are important for reducing the risk of producing inaccurate data.
Finally, the measures used for international broadband comparisons have limitations for a variety of reasons, including socioeconomic differences that make the comparisons difficult. Despite the concerns, stakeholders found the measures useful to help inform policy. Stakeholders generally supported FCC's efforts to develop international comparisons because the comparisons will be at a local level within each country, and could provide more relevant information.

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

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