August 2010

[Commentary] The Internet was born on openness, has flourished on openness and depends on openness for its future potential. This incredible technology intersects with just about every great challenge confronting our nation -- jobs, education, energy, the environment, news, international competitiveness, health care, equal opportunity. But online freedom of Americans is at risk. Right now, the few companies that provide access to the Internet can control what we see and do online, with or without our knowledge. They tell us not to worry because surely they can agree among themselves to behave appropriately. History teaches us, however, that when technological capability to exercise control combines with a financial incentive to do so, some will try to turn this power to their own advantage.

Comcast should be barred from packaging NBC stations with popular cable channels when selling programming to video providers, an industry group told regulators reviewing the company's purchase of NBC Universal.

The Federal Communications Commission needs to restrict Comcast, the biggest U.S. cable company, from selling the TV stations or nine regional sports networks in a bundle with national cable channels it would own such as Bravo and USA Network, the American Cable Association said in a statement. The FCC requirement would "prevent the media giant from harming competitors and their subscribers," Matt Polka, president of the Pittsburgh-based organization, said in an e- mail. The group said 150 of its members are in communities served by NBC stations or Comcast sports networks. The group is seeking to break up the channel packages media companies typically assemble, and "it's improper to apply an industrywide issue to only one company," Sena Fitzmaurice, a Washington-based Comcast spokeswoman, said.

Opponents say Comcast-NBC will have an incentive to raise prices and withhold programs from rivals.

Comcast's own filing in the FCC proceeding said that the "myriad public interest benefits including concrete, verifiable public interest commitments - outweigh any potential transaction-specific harms." In an 88-page document, Comcast refuted each of the criticisms of the joint venture -- ranging from higher prices for broadcast channels to restricted program access. Comcast executive vice president David Cohen noted that counter to the criticism of the deal, more that 1,000 comments supportive of the venture have been filed. "The benefits of this joint venture are real," Cohen wrote. "It will bring about a reinvigoration of broadcasting through and infusion of new capital and energy into NBC. We've committed to additional local broadcast content. We've committed to launch new independent channels, including channels with majority ownership by African Americans and Hispanics. We've committed to accelerate the creation of the "anytime, anywhere" future with a wide array of high-quality content. We want to bring these benefits to American consumers as soon as possible."

A bill that would overhaul information technology oversight sailed through the Senate but, with time running out before Congress adjourns in October, the House still is assessing whether the measure might impede ongoing projects.

The IT Investment Oversight Enhancement and Waste Prevention Act (S. 920) would make permanent many Obama administration technology reforms. It would establish a website for tracking the results of IT investments, similar to the IT Dashboard that federal Chief Information Officer Vivek Kundra launched last year. It also would require agency CIOs to submit quarterly reports on IT systems' costs, schedule and performance against planned benchmarks. But the bill would go further than current practices by granting the Office of Management and Budget permission to hire outside consultants for solving problems. Advisers, for instance, could include retail executives who are experts at supply chain management. Agency heads or OMB officials would be authorized to stop or slash funding for projects beyond repair.

Intel is making the biggest acquisition in its history with the $7.68 billion takeover of computer-security software maker McAfee, an expensive example of Intel's commitment to serve an increasing array of Internet-connected devices.

The deal will help Intel improve the security of its chips by sharpening the software that goes into them. It also opens a new revenue stream for Intel, which will sell security software alongside new chips it's developing for devices such as mobile phones, televisions and even cars. Intel is the No. 1 maker of microprocessors for personal computers and servers. Intel said security is now a fundamental component of online computing, but today's approach to security isn't adequate for the growing availability of Internet connections on mobile phones, medical devices, ATMs, automobiles and elsewhere. The industry needs a new approach that combines software, hardware and services to meet tomorrow's needs, the company said.