November 2009

Advertising resurgence hits the spot for TV networks

There's finally some new life in old media. After pummeling traditional media companies for nearly two years, the advertising recession is showing signs of a recovery. TV networks -- including Fox, CBS and ABC and such leading cable channels as TNT, TBS, USA, Bravo and Fox News Channel -- have benefited the most as advertisers have been snapping up available commercial spots and agreeing to pay significantly higher prices than they did just five months ago. "In challenging times, people go back to what they know, and what they know best is television," said David Levy, president of sales for Turner Entertainment, which includes TNT and TBS. "It is a little too early to declare victory, but the market is definitely improving."

Finding Ways to Reach Minorities With Broadband

A Q&A with Internet Innovation Alliance Co-Chairman David Sutphen. IIA is a coalition of think tanks, nonprofits and companies focused on universal broadband deployment -- from AT&T to the National Education Association. Sutphen is the former senior vice president of government relations for Viacom. Before that, he held a similar lobbying post with the Recording Industry Association of America. One of the alliance's goals is to boosting broadband adoption for minority populations that lag behind other groups in broadband use. That will be in the sweet spot for Sutphen, who is also former general counsel to the late Sen. Ted Kennedy (D-MA), handling civil rights and telecom matters. He spoke with Multichannel News about broadband adoption, network neutrality and the gap between the $350 billion it could cost to roll out an "ideal" broadband network and the just more than $7 billion the government has invested of its own money to date.

Viviane Reding picked to re-write EU data protection laws

European Commission President Jose Manuel Barroso announced on Friday how he wants to allocate dossiers in his next five-year term in office. His team comprises one Commissioner from each of the 27 member states of the E.U., who were selected by national heads of government over the past month. Viviane Reding, the European Commissioner who for the past five years has championed consumer rights in the telecommunications and IT arenas, has been picked to take charge of a re-write of the European Union's 15-year-old data protection laws due to start next year. Neelie Kroes will take over Reding's old job. Kroes was competition commissioner for the past five years. During that time she fought Microsoft in the long-running antitrust battle which looks set to end as Microsoft appears willing to settle. Her new role is likely to worry some in the telecoms industry, who believe she is less willing than Reding to fight the corner of smaller telecoms companies trying to compete against the former incumbents.

FCC Dec 16 Meeting will offer Broadband Plan Update

On December 16, Federal Communications Commission staff will report on the status of the National Broadband Plan, which the FCC must deliver to Congress on Feb. 17, 2010. The presentation will focus on the policy framework for the plan.

AT&T: Restructure USF for Broadband

In meetings at the Federal Communications Commission, AT&T offered its view of the current state of the traditional telephone business model. Downward trends, AT&T argues, endanger national broadband goals. AT&T interprets US communications law to allow the FCC to restructure or replace existing current universal service support for traditional telephone service, allowing funds to support broadband deployment and adoption.

Putting A Price Tag On TV Spectrum

[Commentary] Economist Hazlett knows that television broadcasters are sitting on valuable spectrum needed by mobile devices -- so, he says, it is time to make a deal. He realizes that TV broadcasters' real desire is to secure cable and satellite carriage. He believes broadcasters wouldn't give up any spectrum until they know three things: 1) How much will they be paid? 2) How will their lives change? 3) How can they be sure that they won't get whacked by the opportunists in Congress when they catch a clue that broadcasters are prepared to sell out? The first two questions are answered by seeing what the FCC should do. It should split the TV band into seven overlay licenses of 42 MHz each. Then auction all seven. At the same time, it should provide a mechanism to supply the 10 million households not having a cable or satellite subscription with free broadcast video service for five or 10 years. This can be done by vouchers, as with the DTV set-top box subsidies or via a procurement auction. It won't cost more than $3 billion ($300 times 10 million), a small fraction of the spectrum auction receipts. The overlay licenses will embed encumbrances — TV broadcasters. Existing stations would have the right to continue broadcasting, to relocate to another channel assignment or to go off -air. No worries about coverage. The new spectrum owners will pay cable and satellite operators to guarantee carriage. If not, broadcasters won't vacate. So "free" TV service remains, but the delivery platform will be technology-neutral. And broadcasters will be part of the solution, for which they will be compensated. How does something like $30 billion spread across 1,750 full-power TV stations sound?

[Thomas Hazlett is professor of law and economics at George Mason University. He formerly was chief economist of the FCC.]

Any Objections? NTIA Requests Access to FCC's Broadband Data

The National Telecommunications and Information Administration (NTIA) is evaluating applications and comments to the applications that it has received from broadband service providers in its administration of the Broadband Technology Opportunities Program (BTOP). NTIA requested access to the Form 477 data that the Federal Communications Commission collects from broadband service providers for the purpose of facilitating that evaluation. The Commission collects information about broadband connections to end user locations, wired and wireless local telephone services, and interconnected Voice over Internet Protocol (VoIP) services in individual states on FCC Form 477. The Commission allows filers to request confidential treatment for competitively sensitive information in a particular Form 477 submission by making the appropriate selection on the cover page of Form 477. Pursuant to the Commission's regulations, affected parties have until December 7, 2009 to oppose disclosure to NTIA of the Form 477 data that the Commission collects from broadband service providers. If the Commission receives no opposition from affected parties by that date, the Commission will disclose the information requested above to NTIA. If disclosure is opposed, the procedures set forth in FCC rules shall apply.

Gaps in Broadband for Education

As the Federal Communications Commission works on the National Broadband Plan as it relates to education, it is focusing on evaluating three key gap areas: connectivity required for schools and applications, the ecosystem necessary for broadband to advance progress in education, and the incentives that need to be aligned to realize the potential of broadband. But the key questions are what is the level of connectivity in these classrooms and is it sufficient to meet the needs of students mastering 21st century skills. There is a lot lacking in terms of pervasive and effective use of technology in our classrooms today - the broadband ecosystem is weak in multiple dimensions. This is due, in large part, to a lack of innovation in the field. Finally, the education community needs better aligned incentives to realize the potential of broadband in schools.

Broadband Gaps in the Healthcare Sector

As the Federal Communications Commission works on the National Broadband Plan as it relates to health care, the FCC has identified important connectivity gaps within healthcare. Many hospitals lack the fiber connections required for 100 mbps broadband which enables a range of applications such as Electronic Health Records, Diagnostic imaging and Tele-radiology. Telemedicine usage is hindered by state physician licensure and credentialing rules. Finally, if broadband is going to further national priorities, incentives need to be aligned. A good example is that of reimbursement policy for telemedicine.

What We Can Be Thankful For About Broadband In America

[Commentary] What's good about broadband in America? 1) An abundance of long-haul and intercontinental fiber that runs through and from the US. 2) Most Americans do have access to multi-megabit broadband -- it may not be what we want in terms of speed or price, but it's there. 3) The same is true of . While we may be lagging behind some other countries, the wireless coverage we have is better than nothing. 4) Public access centers like libraries. What we should be most thankful for, though, is that we're finally in the midst of turning good intentions into action through the creation of a national broadband plan. The fact that we're at least doing something is terrific. Whether or not that means we're going to end up with a transformative plan of attack or merely some suggestions for small incremental improvements remains to be seen.

Benton

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