March 2010

The Reclassification Debate, Part II

The Federal Communications Commission agreed with the cable industry that cable modem Internet access wasn't a basic "telecommunications" service because pure transport hadn't been sold separately by them. By integrating transport with other services (like hosting and caching), the cable industry had deregulated itself.

Then the Supreme Court deferred to the Commission's classification of cable modem services in 2005 (Brand X). Justice Scalia characterized the Commission's argument for deregulation as "[W]hat the Commission hath given, the Commission may well take away - unless it doesn't." Right after the Brand X decision came down, the Commission announced that it was deregulating DSL access to the Internet as well. For both of these steps, the Commission decided to place Internet access under what it called its "Title I" ancillary jurisdiction. It could have decided not to apply some elements of Title II common carrier jurisdiction instead ("forbearance"), but it didn't take that path. These decisions left the providers of high-speed Internet access free to discriminate in any way they chose. Around the same time, there was further consolidation in the telephone services market. SBC merged with AT&T and took the AT&T name; Verizon merged with MCI. Internet access, meanwhile, continued to replace telephone as Americans' general-purpose communications network. When Comcast in the fall of 2007 started throttling BitTorrent, the Commission declared that this amounted to unreasonable network management. It said that its authority to issue this kind of declaration came from its ancillary Title I jurisdiction. Now the DC Circuit has signaled that it is likely to find that the Commission didn't have the authority it claimed under Title I to say anything about what Comcast had done. This signal has caused a good deal of consternation in many quarters.

Now what? Where does the FCC's authority to say anything about the basic transmission of Internet communications come from? If the FCC lacks this authority, can it say anything about universal service obligations shifting to support high-speed Internet access, or anything else having to do with transmission?

White House tweeting spreads president's message

Blending behind-the-scenes nuggets with a defense of President Barack Obama's record, White House and administration officials increasingly are communicating through Twitter.

The popular social network is operating as a Web-based clearinghouse for public statements on weighty subjects (the federal budget) and the mundane (personal grocery lists). It's similar to a bulletin board where anyone can post short notes and users cull the pieces they see by choosing to "follow" individuals' account. Forget press releases. Gibbs and his deputy, Bill Burton, are now sharing news in Twitter messages. So far 33,000 people have signed up to follow Gibbs and more than 6,000 are tracking Burton. Those two officials have a ways to go to catch actor Ashton Kutcher and his 4.6 million followers. With a news cycle now measured in seconds rather than days, administration officials recognize they must embrace this rapid pace and use the same tactics as the critics who assail them and the reporters who cover them. Gibbs, who is Obama's chief defender, has signaled that the White House won't cede any ground online. Since then, it has proved to be a powerful tool for mobilizing causes and protest movements by allowing people to use common phrases to link subjects by theme. In Washington, that translates into hashtags - key words preceded by the symbol for a pound sign - such as (pound sign)whitehouse or (pound sign)gop that users key in to find connected nuggets.

Why Google keeps your data forever, tracks you with ads

Not many companies could get away with defending controversial data retention practices by saying that the data is needed to "learn from good guys, fight off bad guys, [and] invent the future." But that's how Google sees itself and its practices -- not surprising from a company that would give itself an unofficial motto like "don't be evil."

Anderson had the chance recently to sit down with two of Google's top privacy people: deputy general counsel Nicole Wong and security/privacy engineer Alma Whitten. While the "good guy/bad guy" and "don't be evil" quotes may seem too cute by half to some, Wong and Whitten made a strong pitch for the truth of both slogans. In their view, Google really is fighting the good fight when it comes to your online privacy.

Experts Review Reform and Standards at the FCC

Panelists from the Federal Communications Commission, Capitol Hill, public interest groups and the private sector addressed issues of FCC reform and regulatory responsibility at "An FCC for the Internet Age: Reform and Standard-Setting," a half-day conference sponsored by Public Knowledge, Silicon Flatirons and the Information Technology and Innovation Foundation.

Dale Hatfield from Silicon Flatirons opened up the conference by enforcing the need for an open, transparent process to encourage investment. He said regulatory risk is no good but it is critical to our fundamental belief in government. He added that while it's important to protect investors, we run the danger of too much or too little regulation with bad effects on both ends. "We need the right tool to stay closer to the optimum," he said.

ICANN CEO Blasts African Telecom Monopolies

Internet Corporation for Assigned Names and Numbers CEO Rod Beckstrom Monday urged African leaders to take steps to "shatter" telecommunications monopolies in their nations to help lower the price of Internet access to their citizens. During opening remarks at the start of ICANN's meeting in Nairobi, Kenya, Beckstrom argued that the Internet can be an important tool for development but it is being hampered by high rates of access in Africa. "If you have a monopoly what do you have? You have the most expensive Internet access rates in the world and where are those? Largely in Africa," Beckstrom said. "How can the poorest people on earth pay the highest rates for Internet access. It's an incredible brake on development."

Stimulus Stories: Telecom veteran Evslin readies Vermont for Round 2 -- and Google

Tom Evslin, Vermont's Chief Technology Officer, is working to bring broadband to the small, northeastern state. That effort -- not to mention his deep industry experience -- has put him at the center of numerous efforts to help seed and speed that broadband deployment, including applying for funding via the federal broadband stimulus program, for similar federal funding in the area of smart grids, and even making an application to Google's closely-watched Fiber for Communities project.

KeyOn Communications Drops in Value on Broadband Stimulus Rejection

KeyOn Communications announced last week that all of its eleven applications, for $152 million in capital subsidies in Round I of the federal broadband stimulus program, were rejected by the Department of Agriculture's Rural Utilities Service. Over the two full trading days since that announcement, the company, which bet heavily on the broadband stimulus program, has lost 46% of its value.

KeyOn Communications applied for funding to extend its wireless, WiMAX delivered, broadband services in the 11 states of: Arkansas, Illinois, Iowa, Kansas, Minnesota, Missouri, Oklahoma, Nebraska, Nevada, South Dakota, and Wisconsin. Requested funds by state ranged from a high of $20.5 million in Iowa, to $5.9 million in South Dakota.

Getting Older Without Getting Old

Facebook now has more than 400 million active users, up from only 50 million as recently as 2007.

If social networking still resembled a young, hip downtown nightclub scene -- one day a site is hot, the next it's not -- we might expect the crowds to decamp soon. Facebook would become another Friendster, still around but ghostly, forgotten by most. Facebook, however, isn't likely to have such a fate. For one thing, it has attracted many "olds," and they tend to stay put. (Consider AOL.) More than 50 percent of Facebook's members in the United States are 35 or older, and only 26.8 percent are 24 or under, according to an analysis of December visitors by comScore Media Metrix. More than demographic stability favors Facebook. The site has shrewdly emulated the "network effects" strategy used by another brand that has long held a dominant position in the computer industry: Microsoft Windows.

For the first time advertisers will spend more on digital than print

A study by Outsell reveals that US advertisers are spending more this year on digital media than on print. Long predicted, this Madison Avenue milestone has finally arrived thanks to a 9.6% boom in digital advertising in 2010. That number comes from Outsell's annual advertising and marketing study, which collected data from 1,008 U.S. advertisers (both consumer and B2B) in December 2009. Of the $368 billion marketers plan to spend this year, 32.5% will go toward digital; 30.3% to print. Digital spending includes e-mail, video advertising, display ads and search marketing. "It's a watershed moment," says the study's lead author, Outsell vice president Chuck Richard.

The new age of online grocery shopping

"Buying your groceries online? What is this, 1996?" That's what someone said to me recently when they found out I do the majority of my grocery shopping through the Internet -- yes, produce and all. Sure, online grocery shopping was one of those things that people envisioned to be common in "The Future" but many of the original efforts fizzled out during the first bursting of the dot-com bubble. Shopping for groceries and household items via the Internet is making a huge comeback, however, thanks in part to some major players who have taken it outside of the typical niche markets.