February 2010

Consultancy Sees Move by Google as Prodding FCC

Google appears to be prodding the Federal Communications Commission to go big on broadband, says a new telecom update out from consultancy Medley Global Advisors. "That prodding could translate into any number of policy shifts in the future. Whether 1-gigabit-per-second broadband networks will become the new normal remains uncertain," reads the report. The update, "Google as Policy Provacateur," notes that the communications giant's recently announced broadband initiative to bring ultra high-speed connections to some locations serving up to 500,000 people comes as the agency is putting the final touches on the national broadband plan due to Congress next month. "The broadband blueprint, though neither self-executing nor enforceable, will nonetheless serve as a launching pad for a series of rulemakings that, among other things, attempt structural reforms of the universal service fund, special access, intercarrier compensation and spectrum," according to Medley Global.

Pick Me Google, Pick Me

Local governments already are starting to lobby Google for a spot along an experimental super-speed network the company announced Wednesday.

Axcess Ontario, a public-benefit corporation overseeing the development of Ontario County, N.Y.'s community fiber network, began the application process on behalf of the county government on Thursday. Ontario County, a rural and suburban community near Rochester, has pledged $12 million for its own 180-mile endeavor. About 60 miles are complete and the rest is expected to be deployed by year's end. "What Google seeks to accomplish is exactly what the Ontario County fiber optic ring was built for," Ed Hemminger, Axcess Ontario president and chief executive officer, said in a statement. "Ontario County should be at the top of Google's list of potential test sites -- we've been working on this project for seven years." Currently, service providers including Verizon Wireless, are providing cost-effective telecommunications to businesses along the 60 miles, according to Axcess Ontario. "This means Ontario County actually has the infrastructure to do what Google wants to do -- and quickly," a company press release states.

Is Google moving too far (from search) too fast?

Google is stuck between something of a rock and a hard place. The company, which rose to prominence and fortune on the basis of its highly popular search service, has been expanding out from its core business at an increasingly swift rate -- and in a growing number of directions. That expansion has some analysts wondering whether Google is in danger of losing focus on what made it such a profitable company, even as those same analysts say it can't rely on search as its only avenue for making money.

Right now, Google relies on search for 95 percent of its revenue, according to Karsten Weide, an analyst with IDC. "Google has the problem of too much money and not enough control over what to do with it," said Rob Enderle, an analyst with the Enderle Group. "As a result, they are building complexity at an alarming rate and that complexity should eventually choke them, much as it did Microsoft .... It isn't that each project isn't important. It's that they often don't dovetail well and should eventually result in a company that is unmanageable."

"Push-Polling" Network Neutrality

[Commentary] Recently, Rucker -- the executive director of ColorofChange.org -- wrote about why there are so many civil rights groups and members of the Congressional Black Caucus opposing network neutrality and why so much of this opposition echoes discredited telecommunications industry talking points. He thinks it's incumbent on leaders opposing or questioning net neutrality to publicly make clear why. Unfortunately, none have done so.

Rucker's piece was answered by Navarrow Wright, a former television and Internet executive and current strategic consultant. Throughout his piece he asserts that the civil rights groups are only "asking questions" that we "shouldn't be afraid to answer." After reading it a couple of times, Rucker realized where he had seen this technique before: Wright's piece -- and the broader arguments he seeks to defend -- are the rhetorical equivalent of a push poll. Push polls are a well known and highly effective political trick. They ask questions that insert into the public consciousness a false idea, positioning a baseless assumption as plausible. Navarrow Wright, and the civil rights organizations he is defending, are effectively "push-polling" net neutrality. They are asking the question, "If you knew that net neutrality would widen the digital divide, would you support it?" The question is asked without any evidence to suggest that the premise of the question is true, but the question itself alters the frame of the debate. The effect has been real -- FCC commissioners who know the truth about net neutrality are being held hostage by debunked theories, as they don't want to be perceived as embracing policy that could hurt minority communities.

'Open Internet' under threat in America -- video

The ability to access all websites easily could come under threat if Internet service providers get their way in America. Critics of "network neutrality" - the principle that all web traffic is treated equally regardless of the type or origin - face opposition from some of the largest Internet companies. President Obama has joined his voice to the debate in defence of an open web which does not discriminate when it comes to data.

Justice Department appeals court ban on cell phone tracking

The US Justice Department argued on Friday that it should be allowed access to people's cell-phone records to help track suspected criminals. In arguments before a federal appeals court, the government asked the court to overturn lower court rulings denying it the right to seek information from communications companies about the call activity of specific numbers that authorities believe are associated with criminal activity. Civil rights lawyers argued that providing information such as dates, times and call duration, and which cell towers the calls used, would be an invasion of privacy and a violation of constitutional protections against unjustified arrest. Attorneys for the Electronic Frontier Foundation and the Center for Democracy and Technology said the government should have to obtain a warrant to track an individual via a cell phone and show probable cause that the information would provide evidence of a crime.

Citing cell phone tapping, Leahy calls for privacy hearings

Electronic privacy laws are "woefully outdated" and must be revised in a way that balances Americans' rights with law enforcement agencies' needs, Sen. Patrick Leahy (D-VT) said Friday.

As the Justice Department heads to court this week to defend its right to tap cell phone locations, Leahy noted many of the laws to be argued before that forum fail to reflect the dawning "Information Age" — a time when new technologies, like BlackBerrys, create both new opportunities to communicate and new privacy challenges. He thus promised as chairman of the Senate Judiciary Committee to hold a hearing on those rules before the year's end, and he urged his fellow lawmakers to work with him on later revisions to the Electronic Communications Privacy Act — the guiding document on the matter.

The Lobbying-Media Complex

Since 2007 at least seventy-five registered lobbyists, public relations representatives and corporate officials -- people paid by companies and trade groups to manage their public image and promote their financial and political interests -- have appeared on MSNBC, Fox News, CNN, CNBC and Fox Business Network with no disclosure of the corporate interests that had paid them.

Many have been regulars on more than one of the cable networks, turning in dozens -- and in some cases hundreds -- of appearances. For lobbyists, PR firms and corporate officials, going on cable television is a chance to promote clients and their interests on the most widely cited source of news in the United States. These appearances also generate good will and access to major players inside the Democratic and Republican parties. For their part, the cable networks, eager to fill time and afraid of upsetting the political elite, have often looked the other way. At times, the networks have even disregarded their own written ethics guidelines. Just about everyone involved is heavily invested in maintaining the current system, with the exception of the viewer. While lobbyists and PR flacks have long tried to spin the press, the launch of Fox News and MSNBC in 1996 and the Clinton impeachment saga that followed helped create the caldron of twenty-four-hour political analysis that so many influence peddlers call home. Since then, guests with serious conflicts of interest have popped up with alarming regularity on every network. Just examine their presence in coverage of the economic crash and the healthcare reform debate, two recent issues that have engendered massive cable coverage.

Political Ad Influx Will Benefit TV, Public

[Commentary] This year, more money than ever before will be spent on political advertising and TV stations will get the biggest share of it.

The Supreme Court, in its Citizens United ruling, just took the lid off spending by corporations and unions. If they want, they can buy spots right up to Election Day. They still can't explicitly support a candidate, but that can easily be gotten around. The other nice thing about this for TV stations is that they don't have to give corporations and unions the so-called lowest unit charge discount that they must give candidates. According to Borrell Associates, the Citizens ruling will push total political spending (everything from national TV to posters) up this year by another $400 million to $4.2 billion. Of that, $1.8 billion will end up at TV stations. Some applauded the Supreme Court decision, saying it affirms the people's right to express themselves any way they want in the rough-and-tumble democratic process. But others, including the president, think that all the money flowing into politics is corrupting our democracy and tends to reduce campaigns to exchanges of mindless and often misleading 30-second spots on TV.

Jessell thinks that the any reformers should consider what impact their fixes may have on broadcasting. For whatever it has done to the Republic, the current messy system of political fundraising and spending has had a positive impact on local TV. He believes that one of the effects of the Supreme Court ruling will be to spur more news production at TV stations. A lot of station owners and managers might be sitting around right now trying to figure out how they can add another half hour or hour of news or perhaps a public affairs show that might attract potential voters and those political dollars.

The real winners in the game of political donations

[Commentary] Although the outcome is far from clear, the stage appears set for a blockbuster election season for congressional incumbents and wannabes. Following the Supreme Court's landmark ruling removing spending limits on corporations' political donations, those inside the Beltway are expecting businesses across the spectrum -- including telecom heavyweights -- to kick in record funds to federal candidates.

Indeed, AT&T--the nation's second-largest wireless carrier--ranks as the country's single most generous corporate political contributor, according to detailed figures provided by the Center for Responsive Politics. The carrier sits at the top of the organization's "heavy hitters" list, having donated a whopping $44.2 million to Republicans and Democrats during the past ten years via soft money, political action committees and individuals (and that number only counts federal contributions). Thanks to the Supreme Court's recent ruling, that tally could well balloon dramatically in the coming years. Other big spenders in the telecom space include Verizon Communications, Microsoft, T-Mobile USA parent Deutsche Telekom, Motorola and others. But I suspect the real winners--aside from triumphant candidates--will be the media companies paid to carry the ads for both the left and the right. And thanks to the growing importance of wireless as an advertising medium, mobile marketers could get a major boost from Election Day.