September 2010

Library grant extends Internet's reach

The Albany Public Library has received a nearly $245,000 federal stimulus grant to increase residents' access to computers. Library Director Carol Nersinger said the two-year grant will be used primarily to expand staffing in the main library's second-floor computer lab. The library's reference room has 16 computers, which are available all hours the library is open and for which there are almost always waiting lines, Nersinger said. The lab contains an additional 17 computers, which are generally available only when the library is conductiong a class.

Students learn media literacy through "Safe Schools" grant

Thanks to the Navajo Peacemaking and Safe Schools Project, Navajo students are helping pilot a media literacy program at the STAR School. The students work under the direction of filmmaker/writer Rachel Tso. Tso finished setting up a state of the art, self-contained media classroom "in a box" last week, including a professional HD camera. Tso is working with seventh and eighth grade students on a film illustrating the Navajo peacemaking system, including an adaptation of the process by Dr. Mark Sorensen, director of the STAR School, that he calls "Playground Peacemaking.

Chicago News Co-op to woo paying readers while hunting more foundation support

The Chicago News Cooperative will soon test the theory that readers are willing to pay for news even as the organization scrambles to line up another year of foundation grants to finance the experiment.

The CNC plans to launch a series of niche online news sites in the next six months, including one focused on Chicago politics, to generate fees, co-founder and Editor Jim O'Shea says. Still, the upstart organization is seeking money from a George Soros-backed foundation and others to stay afloat. The non-profit, which rolled out coverage about a year ago, wants to become self-sufficient by 2015, but may only have until spring 2012 to find out whether a plan to charge $2 weekly member fees succeeds or flops. Chicagoans and national media observers alike are watching the new business model in an evolving landscape.

September 23, 2010 (Protecting network neutrality good for the economy)

BENTON'S COMMUNICATIONS-RELATED HEADLINES for THURSDAY, SEPTEMBER 23, 2010

A busy, busy day in wonkland http://bit.ly/az7wle


BROADBAND
   New study says protecting network neutrality good for the economy
   AT&T: we're innovating way too fast for regulation!

SPECTRUM/WIRELESS
   Freeing Up More Airwaves
   FCC D Block Priority: Interoperable and Sustainable Public Safety Net
   T-Mobile says it blocked texts because client didn't follow guidelines, not because of content

EDUCATION
   Dept of Ed Backs E-Rate for Off-Campus, Wireless Learning Devices
   Facebook Founder to Donate $100 Million to Help Remake Newark's Schools

MEDIA AND ELECTIONS
   Passing the Disclose Act would shed some light on stealth campaign spending
   Sen McConnell Slams Effort to Revive DISCLOSE Act
   SNL Kagan: $2.5 Billion in Station Political Revenue This Year
   The Fair Elections Now Act

TELEVISION/VIDEO
   FCC reviewing whether TV show is meant to sell kids Skechers
   Unappetizing truths about à la carte media grazing
   People Spend More Than Half Their Day Consuming Media

SECURITY/PRIVACY
   The Data Security and Breach Notification Act
   Senators Push for Update to Electronic Privacy Law

STORIES FROM ABROAD
   European Commission Backs Broadband Proposals
   Facebook has fixed privacy problems, Canadian official says
   Netflix apologizes for using actors to meet press at Canadian launch
   Argentina Charges Top Newspaper Executives
   Mobile Phones as Outbreak Predictors?
MORE ONLINE
   Dodaro Tapped for Comptroller General
   FCC.gov Announces Open Source Redesign

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BROADBAND

NETWORK NEUTRALITY GOOD FOR ECONOMY
[SOURCE: The Hill, AUTHOR: Gautham Nagesh]
The Federal Communications Commission's proposed rules for network neutrality would do more to insure economic stability than the proposal from Google and Verizon, according to a new report from New York University think-tank. The report from the Institute of Policy Integrity at the NYU School of Law was released Wednesday and argues the Google-Verizon proposal would increase economic uncertainty by weakening the open framework of the Internet. The authors instead endorse net neutrality principles laid out by the FCC last November. "We can take a cautious approach by protecting net neutrality," said Michael Livermore, executive director of Policy Integrity. "The government should move forward with their plan to keep net neutrality in place in order to preserve the open Internet we have come to rely on and the economic benefit we gain from it." The report argues a shift away from net neutrality now may be impossible to reverse at a later date. On the other hand, strict net neutrality rules today could be relaxed down the road if better alternatives emerge.
benton.org/node/42472 | Hill, The
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AT&T TOO FAST
[SOURCE: ars technica, AUTHOR: ]
[Commentary] CEO Randall Stephenson claims his business just moves too fast for government regulation. "We're obsolescing technology in 7, 8 year curves right now in this part of the industry. And how do you come in and impose regulations on something that is moving that quick, with volumes growing at that kind pace? The business models are still in flux. Whatever regulation you put in, 12 months from now will look silly... This industry is changing so fast it will make [new regulations] look silly five years from now, I believe." This is a bit rich. For one thing, Stephenson himself references the government-backed principles that have regulated telephone companies for 70 years, despite being drafted in an age before wireless phones, fax machines, and answering machines. Principles, if constructed at suitable levels of generality, aren't necessarily outmoded by technological developments (though detailed implementation rules do run into this problem). It's hard to see how broad ideas about nondiscrimination, transparency, and allowing access to any legal device would become meaningless when AT&T rolls out faster wireless data connections. In fact, technical developments seem most likely to make the bandwidth challenges posed by things like online video go away rather than the reverse.
benton.org/node/42450 | Ars Technica
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SPECTRUM/WIRELESS

FREEING THE AIRWAVES
[SOURCE: New York Times, AUTHOR: Editorial staff]
[Commentary] It took two years to overcome the opposition of television broadcasters, Broadway impresarios and Dolly Parton, but the Federal Communications Commission is finally releasing long-awaited telecommunications spectrum for public use. This should vastly increase the reach of wireless broadband around the country, extending Americans' access to the Internet. The FCC is expected to issue rules for the public use of so-called white space -- spectrum allocated long ago to broadcast TV channels that remains unused. Releasing it would allow for new applications like high-powered Wi-Fi networks that penetrate buildings and work over long distances to connect rural schools to the Internet. It could be a godsend to beleaguered users of smartphones by easing data congestion on cellular networks. The change comes none too soon. The last time the FCC released short-range spectrum for public use 20 years ago, it set off a virtual technological revolution that brought us from the baby monitor to Wi-Fi. Who knows what the newly freed airwaves could deliver.
benton.org/node/42476 | New York Times
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D BLOCK HEARING
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
The Federal Communications Commission has proposed trying to re-auction the D block of spectrum for a public-private partnership creating an interoperable emergency communications network, but the Commission appears ready to work with Congress and others on an alternative that puts the spectrum directly in the hands of public safety. In testimony prepared for a Senate hearing on the need for a nationwide public safety network, Police Chief Robert Davis plans to tell the Senate Communications Subcommittee that the D block of spectrum needs to be reallocated to public safety with sufficient funding to build and maintain the infrastructure. He'll say he speaking for virtually all the police chiefs, fire chiefs, sheriffs, and first responders, as well as governors, mayors and state legislators. According to an FCC official speaking on background, rather than push for that partnership, look for the FCC's message at the hearing Thursday to be that it stands ready to work with Congress and the public safety community and the wireless industry on a network that is truly interoperable, nationwide and technically feasible--meaning that there is enough money to create and sustain it.
benton.org/node/42471 | Broadcasting&Cable
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EZ TEXTING RESPONDS TO T-MOBILE
[SOURCE: Washington Post, AUTHOR: Cecilia Kang]
T-Mobile said Sept 21 that it didn't not block medical marijuana text message alerts because of the content of the text. Instead, its decision to cease delivery of text came because EZ Texting didn't follow "best practices" guidelines. EZ Texting responded to T-Mobile's statement saying the carrier didn't have the right to block text messages. "One thing is for sure, however, T-Mobile has never stated that any of its customers have ever complained about text messages from Ez Texting," the firm said. "That's because T-Mobile's customers want to exchange text messages with Ez Texting's customers. Consumers have a right to exchange text messages with whomever they like, just like any other type of call." The short message code service and public interest group Public Knowledge say text messages should be regulated in the same way phone calls are, with the same rules against blocking.
benton.org/node/42455 | Washington Post
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EDUCATION

ED BACKS E-RATE EXPANSION
[SOURCE: Department of Education, AUTHOR: ]
As the Federal Communications Commission considers updating rules for its E-rate program which reduces the communications costs for schools and libraries, the Department of Education has weighed in on proposals concerning wireless services outside of school. In the National Broadband Plan, the FCC proposed funding wireless connectivity to portable learning devices to enable students and educators to take these devices off campus so they can continue learning outside school hours. The Dept of Education supports the proposal saying it is critical in supporting the Department's National Education Technology Plan. The Department recommends that the FCC adjust E-rate's definition of supporting advanced telecommunications services to include wireless connectivity to devices used for learning, whether the devices are used on or off school or library premises. The Department recommends that this adjustment occur in a phased manner to minimize impact on existing discounts that E-rate currently provides to schools and libraries. The department suggests that the E-rate should engage cautiously with any expansion or alteration of discounts and eligibility, such as wireless services on and off premises. However, proceeding with caution should not mean delaying introduction of these new discount services. The FCC can begin to support wireless services for learning, without unduly impacting other portions of the Erate program by enacting a competitive discount program with a limited portion of funds. With $100 million in discounts, we estimate that the FCC could provide wireless connectivity discounts for as many as 277,000 low-income students. And that number should increase significantly as wireless access costs continue to drop.
benton.org/node/42449 | Department of Education
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FACEBOOK DONATION
[SOURCE: New York Times, AUTHOR: Richard Perez-Pena]
Mark Zuckerberg, chief executive and a founder of Facebook, has agreed to donate $100 million to improve the long-troubled public schools in Newark (NJ), and Gov Chris Christie (R-NJ) will cede some control of the state-run system to Mayor Cory A. Booker in conjunction with the huge gift. The $100 million for Newark is the initial gift to start a foundation for education financed by Mr. Zuckerberg. This would be by far the largest publicly known gift by Mr. Zuckerberg, whose fortune Forbes magazine estimated last year at $2 billion.
benton.org/node/42477 | New York Times | WSJ
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MEDIA AND ELECTIONS

DISCLOSE ACT VOTE
[SOURCE: Washington Post, AUTHOR: Editorial staff]
[Commentary] The prospect of secret money flooding into federal elections has progressed from disturbing theory to full-fledged reality. Groups with anodyne names like Americans for Prosperity, Americans for Job Security and Crossroads GPS are, with no legal requirement that they reveal the names of their donors, spending millions of dollars on television advertising and other activities designed to support favored congressional candidates. Tax laws permit a certain degree of political activity by nonprofit advocacy groups and trade associations without requiring reports on the source of the spending. Corporations, labor unions and wealthy individuals that want to influence elections without revealing their involvement can use such entities to do so. But the Supreme Court invited even more of this activity with its decision in the Citizens United case, which allowed corporations and unions to spend unlimited sums to target particular lawmakers for election or defeat. In advance of the November election, especially on the Republican side, that opportunity is being taken up with vigor. This development is unhealthy for democracy.
benton.org/node/42474 | Washington Post | David Axelrod
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MCCONNELL SLAMS DISCLOSE ACT
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
Senate Minority Leader Mitch McConnell slammed the effort by Democrats to bring the DISCLOSE Act to a vote in the Senate. Saying that the country wants to focus on jobs and the economy, Sen McConnell (R-KY) said instead the Democrats are pushing a bill about transparency in elections that "was drafted behind closed doors without hearings, without testimony, and without any markups." The bill, he said, "picks and chooses who gets the right to engage in political speech and who doesn't." The bill passed the House in June but failed to get a vote in the Senate when it came a handful of votes short of defeating a filibuster. The Republicans are expecting Senate Majority Leader Harry Reid (D-NV) to schedule the bill for a vote Thursday (Sept. 23).
benton.org/node/42451 | Broadcasting&Cable
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$2.5B IN POLITICAL AD REVENUE
[SOURCE: Broadcasting&Cable, AUTHOR: Michael Malone, John Eggerton]
SNL Kagan forecasts that political spending will reach $2.5 billion in 2010, which would represent around a 25% gain over the midterm elections in 2006. SNL Kagan says Sinclair Broadcast Group has the largest footprint of the local TV pure-plays in the 16 states with the most highly-contested elections. Gray is also well positioned, according to Kagan, with 14 stations in toss-up states like Florida, Kentucky, Nevada and Wisconsin. CBS and Univision get the nod as the network station groups with the most viewers in those states, though Fox has the largest footprint of all with 28 stations in 16 states.
benton.org/node/42453 | Broadcasting&Cable
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THE FAIR ELECTIONS NOW ACT
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
The Fair Elections Now Act (HR 6116) would use proceeds from spectrum auctions to help finance the political campaigns of House members and provide government matches for contributions by small-dollar contributors via a Fair Elections Fund that would be fueled by, among other things, money collected from spectrum auctions. The bill was introduced Sept 14 by Rep John Larson (D-CT) and referred to the House Commerce Committee. Now Commerce Committee Ranking Member Joe Barton (R-TX) has written Committee Chairman Henry Waxman (D-CA), asking him to hold a hearing on the bill before the House acts upon it.
benton.org/node/42452 | Broadcasting&Cable
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TELEVISION/VIDEO

FCC SETS COMMENT DATES IN SKECHERS PROCEEDING
[SOURCE: The Hill, AUTHOR: Gautham Nagesh]
The Federal Communications Commission is examining whether an animated television show featuring characters created to market Skechers shoes violates rules limiting advertising to children. Campaign for a Commercial-Free Childhood (CCFC) filed a petition with the FCC regarding the show "Zevo-3" set to begin airing on the cable channel Nicktoons on October 11. According to the complaint, the show features three superheroes named Kewl Breeze, Elastika, and Z-Strap, who battle a villain known as Dr. Stankfoot. The FCC is seeking comment on the group's petition; the deadline is October 22. The CCFC argues the characters were created expressly to market specific lines of shoes and said the show should be considered a promotion for Skechers shoes. The law limits cable operators to airing no more than ten and a half minutes of commercial programming per hour on weekdays and 12 minutes on weekends during children's shows. The characters have previously been featured in Skechers TV commercials and comic books.
benton.org/node/42460 | Hill, The | Broadcasting&Cable
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A LA CARTE WORLD?
[SOURCE: Financial Times, AUTHOR: Andrew Edgecliffe-Johnson]
Barry Diller minted a new phrase on Tuesday when he told a Goldman Sachs media conference in New York that "the à la carteing of life has become possible for the first time". The IAC chairman was referring to the sudden explosion of options in the US for picking and choosing from the traditional prix-fixe cable or satellite menu. The death of the monthly pay-TV subscription, which offered a smorgasbord ranging from American Idol and Jersey Shore to niche skateboarding shows, has often been foretold. Such predictions have always been premature, to put it politely. So what has changed? The steady expansion of broadband access is one thing, but this summer has also seen a flurry of significant announcements including Google TV's launch plan, Netflix's five-year digital streaming deal with three Hollywood studios, and the new $99 Apple TV device whose 99 cent-per-show pricing was quickly matched by Amazon. These new options for "over-the-top" Internet-delivered video represent a sufficiently heightened risk to traditional pay-TV platforms for Credit Suisse to have downgraded the US entertainment industry last week.
benton.org/node/42473 | Financial Times
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HALF OF DAY SPENT WITH MEDIA
[SOURCE: The Wrap, AUTHOR: Brent Lang]
More has changed in media consumption over the last two years than in the 30 years that proceeded it, Bruce Friend, president of Ipsos OTX MediaCT said. Citing a new Ipsos OTX study of 7,000 online consumers ages 13 to 74, Friend said that thanks to smartphones and laptops, people are now spending one-half of their waking days interacting with media, and have increased their media consumption by an hour per day over the last two years. That's more time than they spend working or sleeping. And this rabid consumption only stands to intensify as second-generation devices become more ubiquitous. According to the study, 24 percent of people now own a web-enabled smartphone, while cellphone ownership has fallen from 81 percent to 65 percent since 2009.
benton.org/node/42447 | Wrap, The
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SECURITY/PRIVACY

DATA SECURITY BILL
[SOURCE: US Senate Commerce Committee]
The Consumer Protection, Product Safety, and Insurance Subcommittee of the Senate Commerce Committee held a hearing Sept 22 on the Data Security and Breach Notification Act. Commerce Committee Chairman Jay Rockefeller (D-WV) said, "Data breaches plague businesses and organizations, putting millions of consumers at risk. According to the Privacy Rights Clearinghouse, over half a billion data records have been compromised by unauthorized access to consumer databases since 2005. In 2009 alone, there were 498 data breaches involving 222 million sensitive records. The consequences of these breaches are grave: identity theft, depleted savings accounts, ruined credit scores, and trouble getting loans for cars, homes and kids are just some of the effects. Companies and other entities who collect and maintain data on individuals should keep this information safe and notify consumers if it is compromised. That is what this common sense bill requires. I thank Senator Pryor for his leadership on this issue." [more at the URL below]
benton.org/node/42470 | US Senate Commerce Committee | Chairman Rockefeller | FTC
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ELECTRONIC COMMUNICATIONS PRIVACY ACT
[SOURCE: IDG News, AUTHOR: Grant Gross]
On Sept 22, the Senate Committee on the Judiciary held a hearing on the Electronic Communications Privacy Act, a 24-year-old law setting the rules on how law enforcement agencies can obtain electronic records. Committee Chairman Patrick Leahy (D-VT) said the law needs to be updated because it's out of step with modern technology and privacy expectations. Web-based e-mail messages, information stored in cloud-computing environments and mobile-phone location information don't enjoy the same legal protections from government snooping as other types of digital data. "The content of a single e-mail could be subject to as many as four different levels of privacy protections under ECPA, depending on where it is stored, and when it is sent," Chairman Leahy said. "There are also no clear standards under that law for how and under what circumstances the government can access cell phone, or other mobile location information when investigating crime or national security matters." Critics of ECPA have called the law confusing and inconsistent. The Department of Justice has asserted that under ECPA, federal agents do not need a court-issued warrant to request the contents of e-mail on Web- or cloud-based services, even though agents would need a warrant to see an e-mail stored on a laptop or a document stored in a file cabinet, critics have noted. The ECPA also doesn't require a warrant for unopened e-mail stored with a vendor for longer than 180 days, although law enforcement agencies would need court approval to access unopened e-mail less than 180 days old. In addition, under the law, police need a warrant to track a suspect by GPS, but not to track a suspect using less precise cell tower location information.
benton.org/node/42461 | IDG News
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STORIES FROM ABROAD

EC BROADBAND PROPOSALS
[SOURCE: CongressDaily, AUTHOR: Juliana Gruenwald]
The European Commission is moving ahead with efforts to promote the rollout of fast and "ultra-fast" broadband across Europe with a set of proposals aimed at spurring private investment and competition in "next-generation access networks." The commission, the European Union's regulatory arm, approved three proposals Monday aimed at helping the EU meet its goal of ensuring its citizens have access to basic broadband by 2013 and "ultra-fast" broadband by 2020. The proposals include approval of a commission recommendation that requires EU member state telecom regulators to adhere to a common approach related to access to high-speed fiber networks that aims to encourage investment while safeguarding competition. For example the commission recommends that before considering price regulation, telecom regulators consider the investment risks and low rate of return such investments may currently receive. In addition, regulators also are urged to select "access remedies" that encourage market entry and infrastructure based-competition and "light touch" regulation in competitive markets. The second proposal calls on the European Parliament and European Council, which is made up of representatives from EU members states, to establish a five-year program aimed at promoting more efficient management of spectrum and ensuring there is enough spectrum available for wireless broadband by 2013. The commission also adopted a broadband communication outlining a consistent approach EU member states should take to meet the EU broadband goals.
benton.org/node/42469 | CongressDaily
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FACEBOOK'S PRIVACY CONCERNS IN CANADA
[SOURCE: Los Angeles Times, AUTHOR: Jessica Guynn]
Jennifer Stoddart, Canada's privacy commissioner, said Sept 22 that Facebook has resolved concerns she raised a year ago over third-party access to the social networking service's users. Commissioner Stoddart said that changes Facebook put in place met the expectations of privacy under Canadian law. Before the changes, users who wanted to play games or access third-party applications had to make all of their information available. In May, Facebook changed its policy, requiring applications to tell users what parts of their profile the applications want to access and to get permission to access them. Facebook also changed its privacy settings to give users more control over what information they share and with whom.
benton.org/node/42454 | Los Angeles Times | Privacy Commissioner of Canada
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NETFLIX PR
[SOURCE: Globe and Mail, AUTHOR: Michael Olivera]
Netflix closed down a Toronto street Sept 22 and attracted dozens of onlookers for a splashy launch to promote its highly anticipated foray into Canada. Problem is, many of those in the crowd were actors who were paid to be there. Many of the "extras" on hand were interviewed by journalists, who didn't realize they weren't real consumers interested in the product. As a news conference was kicking off to announce Netflix's service — which uses the Internet to stream unlimited access to thousands of movies and TV shows for $7.99 a month — extras were asked to spill into the street and encouraged to "play types, for example, mothers, film buffs, tech geeks, couch potatoes etc." "Extras are to behave as members of the public, out and about enjoying their day-to-day life, who happen upon a street event for Netflix and stop by to check it out," reads an information sheet handed out to extras. "Extras are to look really excited, particularly if asked by media to do any interviews about the prospect of Netflix in Canada." After word of the ruse spread on Twitter, Netflix apologized and said the extras should not have been talking to reporters.
benton.org/node/42466 | Globe and Mail
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Facebook Founder to Donate $100 Million to Help Remake Newark's Schools

Mark Zuckerberg, chief executive and a founder of Facebook, has agreed to donate $100 million to improve the long-troubled public schools in Newark (NJ), and Gov Chris Christie (R-NJ) will cede some control of the state-run system to Mayor Cory A. Booker in conjunction with the huge gift. The $100 million for Newark is the initial gift to start a foundation for education financed by Mr. Zuckerberg. This would be by far the largest publicly known gift by Mr. Zuckerberg, whose fortune Forbes magazine estimated last year at $2 billion.

Freeing Up More Airwaves

[Commentary] It took two years to overcome the opposition of television broadcasters, Broadway impresarios and Dolly Parton, but the Federal Communications Commission is finally releasing long-awaited telecommunications spectrum for public use.

This should vastly increase the reach of wireless broadband around the country, extending Americans' access to the Internet. The FCC is expected to issue rules for the public use of so-called white space -- spectrum allocated long ago to broadcast TV channels that remains unused. Releasing it would allow for new applications like high-powered Wi-Fi networks that penetrate buildings and work over long distances to connect rural schools to the Internet. It could be a godsend to beleaguered users of smartphones by easing data congestion on cellular networks. The change comes none too soon. The last time the FCC released short-range spectrum for public use 20 years ago, it set off a virtual technological revolution that brought us from the baby monitor to Wi-Fi. Who knows what the newly freed airwaves could deliver.

Argentina Charges Top Newspaper Executives

Argentina's government filed criminal charges against executives of the country's two leading newspaper companies, Grupo Clarin SA and La Nacion SA. The government charged the executives with breaking a number of laws in 1976 when the companies bought the newsprint paper company Papel Prensa SA from members of the Graiver family.

The government accuses the executives of human-rights violations, saying they colluded with Argentina's 1976-1983 dictatorship to force the Graiver family to sell the company against their will. Members of the Graiver family have given conflicting accounts about the circumstances surrounding the sale. In a 191-page document filed with the court Tuesday, the government accused Grupo Clarin's president and chief executive, Hector Magnetto, of threatening in 1976 to kill Lidia Papaleo, the widow of David Graiver, one of the owners of Papel Prensa, if the family didn't sell the paper producer to the newspaper companies. Mr. Graiver died in an accident three decades ago in Mexico. The government has based its charges in part on testimony Ms. Papaleo provided to government investigators investigating human-rights abuses during the regime of Jorge Rafael Videla.

Passing the Disclose Act would shed some light on stealth campaign spending

[Commentary] The prospect of secret money flooding into federal elections has progressed from disturbing theory to full-fledged reality. Groups with anodyne names like Americans for Prosperity, Americans for Job Security and Crossroads GPS are, with no legal requirement that they reveal the names of their donors, spending millions of dollars on television advertising and other activities designed to support favored congressional candidates. Tax laws permit a certain degree of political activity by nonprofit advocacy groups and trade associations without requiring reports on the source of the spending. Corporations, labor unions and wealthy individuals that want to influence elections without revealing their involvement can use such entities to do so. But the Supreme Court invited even more of this activity with its decision in the Citizens United case, which allowed corporations and unions to spend unlimited sums to target particular lawmakers for election or defeat. In advance of the November election, especially on the Republican side, that opportunity is being taken up with vigor. This development is unhealthy for democracy.

Unappetizing truths about à la carte media grazing

Barry Diller minted a new phrase on Tuesday when he told a Goldman Sachs media conference in New York that "the à la carteing of life has become possible for the first time".

The IAC chairman was referring to the sudden explosion of options in the US for picking and choosing from the traditional prix-fixe cable or satellite menu. The death of the monthly pay-TV subscription, which offered a smorgasbord ranging from American Idol and Jersey Shore to niche skateboarding shows, has often been foretold. Such predictions have always been premature, to put it politely. So what has changed? The steady expansion of broadband access is one thing, but this summer has also seen a flurry of significant announcements including Google TV's launch plan, Netflix's five-year digital streaming deal with three Hollywood studios, and the new $99 Apple TV device whose 99 cent-per-show pricing was quickly matched by Amazon. These new options for "over-the-top" Internet-delivered video represent a sufficiently heightened risk to traditional pay-TV platforms for Credit Suisse to have downgraded the US entertainment industry last week.

New study says protecting network neutrality good for the economy

The Federal Communications Commission's proposed rules for network neutrality would do more to insure economic stability than the proposal from Google and Verizon, according to a new report from New York University think-tank.

The report from the Institute of Policy Integrity at the NYU School of Law was released Wednesday and argues the Google-Verizon proposal would increase economic uncertainty by weakening the open framework of the Internet. The authors instead endorse net neutrality principles laid out by the FCC last November. "We can take a cautious approach by protecting net neutrality," said Michael Livermore, executive director of Policy Integrity. "The government should move forward with their plan to keep net neutrality in place in order to preserve the open Internet we have come to rely on and the economic benefit we gain from it." The report argues a shift away from net neutrality now may be impossible to reverse at a later date. On the other hand, strict net neutrality rules today could be relaxed down the road if better alternatives emerge.