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  2. September 2010

September 2010

SNL Kagan: $2.5 Billion in Station Political Revenue This Year

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.

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.

Sen McConnell Slams Effort to Revive DISCLOSE Act

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).

AT&T: we're innovating way too fast for regulation!

[Commentary] AT&T 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.

Dept of Ed Backs E-Rate for Off-Campus, Wireless Learning Devices

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.

Mobile Phones as Outbreak Predictors?

An all-star consortium in South Asia wants to maximize the potential of mobile healthcare by identifying epidemics within 24 hours, compared to the standard two to three weeks it normally takes in countries such as Sri Lanka.

The partners include the Indian Institute of Technology, Madras, Carnegie Mellon University's Auton Lab, LIRNEasia, the University of Alberta, and the International Development Research Centre (IDRC), among others, and together the effort is called the Real Time Biosurveillance Program (RTBP). The group is conducting ongoing research to see how a comprehensive disease surveillance system could work in rural areas via mobiles

People Spend More Than Half Their Day Consuming Media

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.

September 22, 2010 (Broadband Use In China Soars, US Slows)

BENTON'S COMMUNICATIONS-RELATED HEADLINES for WEDNESDAY, SEPTEMBER 22, 2010

A busy day on the Hill http://bit.ly/a82fLE


INTERNET/BROADBAND
   Broadband Use In China Soars, US Slows
   Network Neutrality: We're Still Waiting
   In His Own Words: Julius Genachowski's Vision of Real Net Neutrality
   Network Neutrality Activists Target Google as Talks Heat Up
   House Dem: Want of network neutrality bill is not a permit to reclassify
   FCC Chairman Genachowski announces programs to connect students to the Web
   Google, turn your gigabyte city into a science experiment
   Investors Bid Up Internet Firms to Levels Reminiscent of the Last Dot-Com Boom
   Extending The Law Of War To Cyberspace

WIRELESS/SPECTRUM
   Wireless Lobby Urges More NTIA Funding
   EU proposes more radio spectrum for mobile broadband
   Dept of Transportation Proposes New Anti-Texting Rule
   See also: Warning labels on cellphones proposed
   Apple's outrageous share of the mobile industry's profits
   NIST Research Could Boost Mobile Device Security

TELEVISION
   ABC's Iger: Affiliates' Retransmission Payments Will Grow
   Texas School Asks FCC to Block Time Warner Cable PEG Move

ADVERTISING
   Dems plan last-ditch vote on Disclose Act
   Put An End To Paid Political Advertising
   Pennsylvania TV station will continue to air controversial ad
   Commercial Confusion
   Do TV Spots Work in Web Video?
   Fred Davis, GOP's ad wizard spins tempting tales and viral videos for candidates

CONTENT
   Activists upset with Facebook

ENERGY
   FCC Urged To Help Advance Smart Grid Technologies
   Why Texas is the Smart Meter Market to Watch
   Grid Net Creates Industry Advisory Board to Help Drive Regulatory Strategy

HEALTH
   Blumenthal: 2013 meaningful use to ramp up health information exchange, decision support
   More US doctors moving to e-prescriptions

MORE ONLINE
   New Network Will Enhance Enforcement, Help to Protect Consumers' Privacy
   House Finance chairman 'not optimistic' about online gambling bill moving
   Vice President Biden: "Science is back in the White House"
   Why today's journalists need not hide their politics
   Google launches Election Ratings
   FCC Launches Online "Parents' Place"
   How Are Children Exposed to the News?
   O'Donnell's Delaware Stunner Drives Election Coverage

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INTERNET/BROADBAND

BROADBAND USE SOARS IN CHINA
[SOURCE: InformationWeek, AUTHOR: W. David Gardner]
Led by a surge of broadband users in China, worldwide broadband subscriber lines have passed the 500 million mark, according to a report released by the Broadband Forum. The Broadband Forum said that China is the "powerhouse" of broadband with 43% of new broadband subscriptions added in the second quarter ending in June. According to market researcher Point Topic, broadband gains in the U.S. and Canada have slowed significantly to levels not seen in a decade.
benton.org/node/42404 | InformationWeek | Connected Planet
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WE'RE STILL WAITING
[SOURCE: The Huffington Post, AUTHOR: Timothy Karr]
[Commentary] Exactly a year ago, Federal Communications Commission Chairman Julius Genachowski made a major promise to deliver on Network Neutrality. "If we wait too long to preserve a free and open Internet, it will be too late," he told an influential audience in Washington. We're still waiting. Instead of doing what's right for Internet users, Chairman Genachowski has dodged, dithered and delayed. But it's not too late to turn things around. And Genachowski's legacy as chair of the FCC -- either as a champion of openness or as a toothless bureaucrat -- rests on what he does now. He can make a decisive and principled move to protect Net Neutrality and be remembered as a hero of the Internet, or he can continue to waffle and be remembered as the FCC head who stood idle as our online freedoms were handed over to the likes of AT&T, Comcast and Verizon. He needs to decide, and soon. [Karr is campaign manger for Free Press]
benton.org/node/42409 | Huffington Post, The
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REAL NETWORK NEUTRALITY
[SOURCE: Free Press, AUTHOR: ]
What does real Network Neutrality look like? Any policy that truly protects the open Internet and its users must embody a few basic concepts:
There is only one Internet: Rules must apply to wireless and wired services.
Internet service providers must not block applications, content, services or devices.
Strong non-discrimination rules are key to preserving the open Internet.
Paid prioritization is harmful because it allows ISPs to pick winners and losers online.
"Reasonable Network Management" cannot be a loophole that undermines the open Internet.
"Managed services" cannot be allowed to stifle the growth of the open Internet.
Users, not ISPs, should determine which applications need Quality of Service treatment.
benton.org/node/42408 | Free Press
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NETWORK NEUTRALITY ACTIVISM
[SOURCE: Wall Street Journal, AUTHOR: Amy Schatz]
Network Neutrality activists and left-leaning interest groups are launching an online advertising campaign targeting Google co-founders Larry Page and Sergey Brin for the company's recently announced agreement about web traffic delivery with Verizon Communications. Google has long been a supporter of net neutrality ­ the idea that Internet providers can't deliberately block or slow data traffic ­ however the company's recent legislative proposal with Verizon prompted some activists to suggest the search giant had sold out on the issue. The Google-Verizon proposal would have given the FCC limited authority to police Internet lines. But it would have allowed Verizon and other Internet providers to create special prioritized lanes of Internet traffic for companies willing to pay extra. It also wouldn't have imposed network neutrality rules on wireless Internet networks. "We're continuing to rally the public, including techies in Silicon Valley, against Google's decision to be evil and harm the free and open Internet," said Jason Rosenbaum, senior online campaigns director for the Progressive Change Campaign Committee. The group is spending "tens of thousands" on the online advertising campaign, said PCCC communications director Adam Green.
benton.org/node/42407 | Wall Street Journal
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GREEN WANTS FCC INACTION
[SOURCE: The Hill, AUTHOR: Sara Jerome]
If stakeholders and members of Congress fail to cobble together net-neutrality legislation before the House adjourns, the Federal Communications Commission (FCC) does not gain a stronger argument for moving forward with reclassification, according to Rep Gene Green (D-TX). He thinks that if House lawmakers fail to produce a consensus bill before they leave Washington, the FCC nevertheless does not gain grounds for independently increasing its authority over broadband providers.
benton.org/node/42416 | Hill, The
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BROADBAND FOR EDUCATION
[SOURCE: The Hill, AUTHOR: Gautham Nagesh]
Federal Communications Commission Chairman Julius Genachowski announced new programs aimed at keeping students connected to the Web both inside and outside the classroom. Speaking at a public forum on education technology at the Computer History Museum, Chairman Genachowski announced a pilot program that will give students wireless access to the Internet after they leave school grounds. The Learning-On-the-Go program will enable digital textbooks, iPads and other wireless devices to connect to the Web outside of school at no cost to the students. Chairman Genachowski also said schools and libraries participating in the E-Rate program will be allowed to take advantage of unused fiber optic lines in their areas in an effort to boost the connection speeds available to students and members of the public. Finally, Chairman Genachowski said the FCC will consider expanding the "School Spots" program, where schools can choose to provide Internet access to the surrounding community after students go home. The National Broadband Plan includes a goal of connecting a school or library in every community to an affordable, high-speed broadband pipe. The School Spots program would allow local users to take advantage of that high-speed connection when it isn't being used by students.
benton.org/node/42406 | Hill, The | TechDailyDose | Chairman Genachowski
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GIGABYTE CITIES
[SOURCE: The Christian Science Monitor, AUTHOR: Matthew Kahn]
[Commentary] Chattanooga, Tennessee is running an interesting experiment . By the end of this year, its residents and firms will be able to opt into accessing an extremely high speed (1 gig per second) Internet access. This is a specific place based treatment. Will this stimulate economic growth or simply stimulate increased downloads of movies, videos, and images of Lady Gaga and other leisure activities that raise well being but won't "create jobs." Cities have tried out many placed based strategies for encouraging growth. Favorites include; new sports stadiums, new arts museums and Ed Glaeser's favorite --- building billion dollar federally subsidized rail transit systems). Could fast Internet cable achieve what these other strategies have not? I have blogged about this subject before. But, now a new point. Google is undertaking a similar effort.
benton.org/node/42405 | Christian Science Monitor, The
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WIRELESS/SPECTRUM

CTIA WANTS FUNDING FOR NTIA
[SOURCE: CongressDaily, AUTHOR: Juliana Gruenwald]
CTIA, the wireless industry's lobbying arm, is urging the Obama Administration to provide the National Telecommunications Information Administration with more resources so it can work to identify additional spectrum for the growing demand for mobile broadband. In a letter to President Obama, CTIA President Steve Largent called on the Administration to push Congress to provide the NTIA with the funding it needs to identify additional spectrum to help meet the FCC's goal set in its national broadband plan of freeing up 500 megahertz of spectrum for mobile broadband over the next decade. Largent also urged the administration in its fiscal year 2012 budget plan to propose adequate funding for the NTIA to do this job.
benton.org/node/42414 | CongressDaily | B&C
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SPECTRUM FOR MOBILE
[SOURCE: Dow Jones, AUTHOR: Peppi Kiviniemi]
The European Commission has proposed allocating more available European radio spectrum for wireless broadband and other wireless services by the end of 2012. Promoting wireless broadband has been one of the commission's key objectives, regarded as boosting new technologies as well as bringing faster broadband connections to people living in remote areas. Radio spectrum is becoming available due to a switch from analog television broadcasting to digital, but the commission has been concerned that in some member states the freed-up bandwidth might be used for more regional broadcasting rather than new mobile services. Instead, the commission wants European Union countries to allocate freed-up radio spectrum to mobile operators that can then build new fourth-generation, or 4G, networks, allowing users to watch high-definition videos on mobile devices and to receive and upload data faster than before.
benton.org/node/42395 | Dow Jones
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NEW TEXTING RULES
[SOURCE: CongressDaily, AUTHOR: Juliana Gruenwald]
The Transportation Department is holding a day-long distracted driving summit in Washington during which Transportation Secretary Ray LaHood announced the agency will implement a new rule that would ban commercial truck drivers from texting while transporting hazardous materials. Two rules Sec LaHood announced at a similar summit last year have now become law. The rules ban commercial bus and truck drivers from texting on the job and restrict train operators from using wireless devices while driving. The Department of Transportation also announced nearly 1,600 U.S. companies and organizations, covering 10.5 million workers, have signed on to a program aimed at persuading private firms and groups to implement policies that discourage distracted driving. Another 550 organizations have agreed to adopt distracted driving policies in the next year that cover 1.5 million additional U.S. workers.
benton.org/node/42400 | CongressDaily
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TELEVISION

RETRANSMISSION FEES FLOW TO NETWORKS
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
ABC affiliates can expect to kick more of their retransmission consent spoils up to the network, as Walt Disney Company President/CEO Bob Iger told a room full of investors that the company seeks to grow its retrans pot at their expense. "The good news is, we've struck some deals already with affiliates to gain access to those fees, and we're in negotiations with other affiliates to continue that strategy," he said at the Goldman Sachs Communacopia confab in New York. "Given the dynamics of the broadcast business and the relationship of the affiliates, we feel we're not only within our rights, but we will get more cash from their retransmission consent deals." Networks are increasingly demanding a substantial piece of partner stations' retrans earnings. Some ABC affiliates have privately grumbled at the network's demands, while others have chalked the fees up to the cost of doing business with a major network in the modern media age. ABC is not the only network pushing affiliates for retransmission revenue. Iger said it's essentially easy money for the network, with no costs involved. "Cash payments for retrans are real, will grow, and there's no incremental cost to get them," he said.
benton.org/node/42420 | Broadcasting&Cable
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TWC AND PEG IN TEXAS
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
The McAllen (TX) School District has asked the Federal Communications Commission to block Time Warner Cable from migrating Public, Education and Government cable access channels from analog to digital there starting Oct. 1. The McAllen district, which describes itself as a heavy user of educational channel access, wants the FCC to block the move to digital there and elsewhere until it acts on other petitions, which the FCC has had under consideration since February 2009, seeking a declaratory ruling that migrating the channels to a digital tier is discrimination. "Had the Commission issued the requested rulings, it would have prevented incumbent cable operators from discriminating against PEG channels or exercising editorial control over the PEG channel capacity. But, some 19 months later, the Commission has not yet issued a decision in this docket," the petition states.
benton.org/node/42419 | Broadcasting&Cable
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ADVERTISING

PAID POLITICAL ADVERTISING
[SOURCE: The Huffington Post, AUTHOR: Richard Greener]
[Commentary] Americans are sold their politicians like they are sold soap. Recent Court decisions seem to have raised the stakes by allowing nearly anyone, even corporations, an unlimited right to spend money for political purposes - to influence the outcome of elections. Responsible broadcasters should take no part in this and responsible citizens and taxpayers should demand that their radio and television frequencies not be used as a crucial determinant in the electoral process. After all, the airwaves belong to all of us. Americans who run for public office are not consumer products. They should not be sold to the public as if they were with an advantage to those with the most money to spend. Station owners who license the public airwaves, and have the ability to operate at a profit, and then sell those licenses for a capital gain, have an obligation to serve the public interest. They already provide news, weather, and other information programming in fulfillment of that license requirement. They should also contribute to the public discourse and dialogue about elections and candidates without having to generate more revenue. The availability of free time to candidates combined with the prohibition on others buying additional time would eliminate the fundamental unfairness of "selling candidates" like so many hamburgers, automobiles or bottles of beer. Paid political advertising on radio and TV should become a thing of the past.
benton.org/node/42397 | Huffington Post, The
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CONTENT

ACTIVISM AND FACEBOOK
[SOURCE: Politico, AUTHOR: Josh Gerstein]
Grass-roots activists organizing boycotts against large corporations like Target stores and BP now find themselves directing some of their ire at another corporate monolith: Facebook. The boycotters turned to the popular social media site to spread word about their pressure campaigns and keep participants up to date on the latest developments, but those efforts became much more difficult last week when Facebook disabled key features on the boycott pages. As the number of Facebook members signed up for the "Boycott Target Until They Cease Funding Anti-Gay Politics" page neared 78,000 in recent days, Facebook personnel locked down portions of the page — banning new discussion threads, preventing members from posting videos and standard Web links to other sites and barring the page's administrator from sending updates to those who signed up for the boycott. "It slices the vocal cords," complained Jeffrey Henson, who ran the Facebook page, calling for a boycott of Target over its $150,000 donation to a group supporting a candidate some view as hostile to the gay community, Minnesota gubernatorial candidate Tom Emmer. "The page is now outraged" over the website's action, Henson added.
benton.org/node/42396 | Politico
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ENERGY

SMART GRID TECH
[SOURCE: CongressDaily, AUTHOR: Juliana Gruenwald]
Two lawmakers on the House Commerce Committee urged the Federal Communications Commission to ensure that smart electrical grid technologies can utilize unused spectrum between broadcast television channels known as "white spaces." The FCC is set to vote Thursday on a final rule allowing for the use of white spaces for "unlicensed broadband wireless devices." In a letter to FCC Chairman Julius Genachowski, Reps. Anna Eshoo (D-CA) and Doris Matsui (D-CA) urged him to "ensure a variety of technologies, including smart grid applications, are able to utilize this spectrum to advance our nation's clean energy needs." They note that advances in technology can allow consumers to monitor their energy use in real time. Electrical utilities also could benefit from having access to white spaces, they added.
benton.org/node/42399 | CongressDaily
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TEXAS SMART METER MARKET
[SOURCE: GigaOm, AUTHOR: John St John]
When it comes to the future of smart meters, keep your eyes on Texas. The Lone Star State may lag behind California in its number of smart meters deployed, but it's taken a lead in supporting them with regulations and funding, and brought different utilities' smart meter systems together in a way no other state has yet managed. Just how consumers will react remains the biggest test, however.
benton.org/node/42398 | GigaOm
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HEALTH

HEALTH INFORMATION EXCHANGE
[SOURCE: GovernemntHealthIT, AUTHOR: Mary Mosquera]
Dr. David Blumenthal, the national health information technology coordinator, sent a strong signal to healthcare providers and vendors to expect more complex requirements for health information exchange and clinical decision support tools to be among forthcoming requirements for the next stage of meaningful use. The Office of the National Coordinator for Health IT is now beginning to do "early reconnaissance" around development of stage 2 meaningful use requirements, according to Dr Blumenthal. "We know there were a set of unfinished tasks, things we passed over in the effort to get the first stage of meaningful use out the door," he said at an industry event Sept. 21 about states which are leading in electronic prescribing and where he took the opportunity to communicate some future plans. The provider and vendor community "should look forward to a much more robust set of requirements around health information exchange, an exchange that consciously ignores economic relationships, geographic relationships and political jurisdictions. "We want information to follow patients," Blumenthal said.
benton.org/node/42410 | GovernemntHealthIT
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Investors Bid Up Internet Firms to Levels Reminiscent of the Last Dot-Com Boom

The technology-heavy Nasdaq Composite Index is relatively flat this year. Yet tech company valuations are rapidly rising in one area: closely held consumer Web firms Venture-capital investors and others have been bidding up the valuations of consumer Web start-ups this year, particularly of the firms that show the most user traction. In an echo of the 1990s dot-com boom, some investors also are giving lofty valuations to Web firms that have no revenue and that barely have a product out.

Among them: question-and-answer website Quora Inc. in March raised around $14 million in a financing round that inputs a value for the whole company of about $87.5 million, people familiar with the matter have said. The Palo Alto, Calif., firm didn't publicly launch its service until June and hasn't said how it will make money. Another company, Blippy Inc., which allows people to share and discuss their purchases online with friends, raised $11 million in a deal valuing the whole company at $46 million earlier this year. In June, mobile-technology firm Foursquare raised $20 million in funding at a company valuation of $95 million, up from a $6 million valuation less than a year earlier, a person familiar with the matter said. Valuations for closely held companies are typically guesswork. But the strong numbers for consumer Web companies indicate how parts of Silicon Valley's start-up market are bouncing back following the recession. The recovery already started showing up last year, when Twitter Inc. was valued at $1 billion during a round of funding, up from $95 million in mid-2008 when it raised a previous round of funding, according to research firm VentureSource, a unit of Wall Street Journal owner News Corp.

Warning labels on cellphones proposed

Transportation Secretary Ray LaHood proposed labels that would warn that using a cellphone while driving is dangerous. He announced last week that research by the National Highway Traffic Safety Administration found that distracted driving led to 5,474 highway deaths and 448,000 accidents last year, which was 16 percent of the national total.

Asked whether such warning labels should be required in all new cars, Sec LaHood said, "I want to work with the car industry on a few other things before I get to that." In his opening remarks, Sec LaHood scolded the auto industry for turning cars into entertainment centers. He said automakers have supported bans on text messaging and handheld cellphone use while driving, but have introduced other distractions.

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