October 29, 2010 (Verizon's "mystery fees" settlement)
BENTON'S COMMUNICATIONS-RELATED HEADLINES for FRIDAY, OCTOBER 29, 2010
Two events today... http://bit.ly/b2FNPO
WIRELESS
Verizon Wireless to pay largest-ever settlement and consumer refund for "mystery fees"
Moving WiFi to the next level
Qwest aims to ease wireless backhaul migration pain
FCC Seeks Input on World Radiocommunication Conference Proposals
TELEVISION
Where's the Game?
Cablevision Says Government, Nonprofit Could Retransmit World Series Online
Fox Blackout May Spread as Dish, News Corp. Spar Over Fees
MAP Says Fox Waivers Give Broadcaster Undue Retransmission Clout
Retransmission Fallout: Fox Loses Political Dollars
FCC Is Said to Mull Refunds in Cablevision-Fox Dispute
Everyone's Got A TV Price: Cablevision, Fox, And Even New York-Area Viewers
19% Will Switch If Cablevision, Fox Fight Continues Next Week
MEDIA AND ELECTIONS
95 Democratic Candidates Adopt Network Neutrality Pledge
Fred Upton: No network neutrality deal this year
Retransmission Fallout: Fox Loses Political Dollars
Tech money flows to Whitman, Boxer bypasses Fiorina
After the Election: Vote for Barton!
Can the Social Network Predict Winners in the 2010 Midterms?
TV still the favored medium for political ad spending
Spanish-Language Media Launch Drive to Get Hispanics to the Polls
Democrats increasingly go negative in midterm ads
INTERNET/BROADBAND
Broadband stimulus flows disproportionately to Commerce Committee members (updated: NTIA response)
Baltimore County installs new public broadband system
Adrian's telepharmacy: just one example of stimulus' positive results in rural Minnesota
Obama's chief scientist pushes national broadband plan
Justifying Rural Goals in the National Broadband Plan
Rockefeller dismisses Citynet's objections to broadband plan
Consumer Satisfaction with Broadband Declines
How is the Internet Evolving
Google now second-largest ISP, carries 6.4% of Internet traffic
RADIO
FCC Announces Freeze on Filing of Most Applications in the Low Power Television Service
TELECOM
Policy issues key to small telco financial, competitive health
Two Men Plead Guilty To Defrauding FCC VRS Program
AT&T exec speaks out on traffic pumping
Carlyle telecom Acquisitions
GOVERNMENT AND COMMUNICATIONS
Agencies to Get Customer Service Grades
GOP Overseer: Technology = Transparency
TELEWORK
Big telework savings trumps butts in the seats
White House pushes more telework paid leave
HEALTH
Collaboration Yields Broadband for North Carolina Telehealth Network
Study Finds Health IT Adoption Growing
ONC to begin NHIN Direct testing at year's-end
KIDS AND MEDIA
Argument preview: Kids and video games
See also:Dueling Commentary on California Video Game Law
Kill Screen
Creating Online Games That Educate and Instruct
FCC NEWS
FCC Chairman Defends Budget Request
COMMUNITY MEDIA
These headlines presented in partnership with:
Baltimore County installs new public broadband system
Adrian's telepharmacy: just one example of stimulus' positive results in rural Minnesota
The London Public Library: An Example of The New Mega-Library
Public Libraries -- Use Them or Possibly Lose them!
Concern over public library funding
STORIES FROM ABROAD
Google Street View privacy flap shows growing rift between US, EU
Google pledges AdWords clarity, France ends probe
Nepal firm takes high speed Internet to Mt Everest
TV show allows Iraqis to voice their anger live
MORE ONLINE
White House's Next Task: Rebuilding Policy Team
ACLU Pushes Bill Authorizing Televised Supreme Court Arguments
O'Donnell, Palin Trigger Blog Battles
Don't Forget the Facts About NPR Funding
Media Companies May See Ad Recovery Continue
How Lady Gaga's One Billion YouTube Views Changes the Music Industry
Center for Public Integrity shifts strategy
Microsoft Adopts Website Release for Earnings
WIRELESS
VERIZON SETTLEMENT
[SOURCE: Federal Communications Commission, AUTHOR: Press release]
Federal Communications Commission's Enforcement Bureau announced an historic consent decree with Verizon Wireless -- including a record $25 million payment to the U.S. Treasury -- regarding "mystery fees" the company charged its customers over the last several years. The payment is the largest in FCC history and the settlement concludes the agency's ten-month investigation into these overcharges. In addition to Verizon Wireless's payment to the Treasury, the company will immediately refund a minimum of $52.8 million to approximately 15 million customers and ensure that consumers are no longer charged the mystery fees. The investigation focused on "pay-as-you-go" data fees -- charges of $1.99 per megabyte that apply to Verizon Wireless customers who do not subscribe to a data package or plan.
To ensure that all affected consumers are repaid and the mystery fee issue is resolved, Verizon Wireless has agreed to key consumer protection measures, including:
No more mystery fees: Verizon Wireless must cease charging customers the incorrect fees. In addition, the company has agreed to take affirmative steps to prevent future unauthorized data charges.
Immediate repayment of 15 million customers: Customers who have been identified by Verizon Wireless as being potentially overcharged for data usage will receive refunds or credits on their October or November bills.
Right to appeal: Verizon Wireless's repayment obligations are not capped at the estimated $52.8 million in refunds identified by the company. Customers who do not receive a refund but believe they had unauthorized data charges have a right to appeal, receive a good-faith review, and reach resolution within 30 days. Verizon Wireless is required to disclose any unresolved complaints to the FCC.
Commitment to offer data blocks on request: Verizon Wireless must offer data blocks to any customer who seeks to avoid data charges on his or her bill.
Improved customer service: Verizon Wireless must launch several new customer service initiatives to provide more information and more options to consumers. These include:
-Plain-language explanations of "pay as you go" data charges and data plans, and the available tools to reduce those charges;
-An online video tutorial to help consumers understand their bills; and
-Enhanced training on pay-as-you-go data charges to Verizon Wireless's customer service representatives who interface directly with consumers and respond to consumer questions or complaints.
Data Charge Task Force: Verizon Wireless must create a Data Charge Task Force, staffed by specially trained customer service experts who will monitor and resolve data charge complaints and other data charge-related issues going forward. The Task Force will issue regular reports to the FCC so the agency can ensure compliance.
Strong accountability and compliance monitoring: Verizon Wireless must submit periodic reports to the FCC on its refund, training, and customer service initiatives (including information on specific complaints) to ensure the company's compliance going forward.
benton.org/node/44236 | Federal Communications Commission | read the Order | read the consent decree
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NEXT LEVEL WI-FI
[SOURCE: Washington Post, AUTHOR: FCC Chairman Julius Genachowski]
[Commentary] Recent public discussion has focused on the importance of large-scale visible infrastructure projects, such as highways and high-speed rail, to economic growth and America's global competitiveness. Just as vital is our invisible infrastructure - the electromagnetic spectrum that travels through the air and enables our wireless communications networks. The value of spectrum is growing every day. But if don't address our spectrum shortage, we will stifle American innovation and cost our nation the job-creating opportunity to lead the world in mobile communications. Put simply, we have no choice but to make more spectrum available for mobile broadband and to find new ways to use spectrum more efficiently. The United States will be the first nation to deploy this Super WiFi technology. Analysts estimate that we will benefit from billions of dollars in new private investment and accompanying job creation. We will also be exporting our technology products to other countries, not the other way around. But Super WiFi must be only one small step in unleashing the potential of wireless. Over the next decade, we need to free up 500 megahertz of spectrum for wireless broadband use -- much more than all the spectrum we assign to this use today. The challenge is finding 21st-century policies that recognize the important role that broadcast TV still plays while reprioritizing our use of spectrum. In my view, the best approach is through market-based mechanisms that will encourage the current holders of spectrum to let some of that spectrum flow to uses the market and consumers value most.
benton.org/node/44245 | Washington Post
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TELEVISION
WHERE'S THE GAME?
[SOURCE: New York Times, AUTHOR: Editorial staff]
[Commentary] More than three million cable subscribers in the New York City area couldn't watch the first game of the 2010 World Series. That's because of the continuing brawl between Cablevision Systems and the Fox networks over who should get a bigger share of subscribers' fees. The blackout is still going on. This isn't just a problem for die-hard baseball (or "Glee") fans in New York. Millions of subscribers around the country can expect a similar fight between the News Corporation, which owns Fox, and the Dish Network, a satellite service, when their agreement expires Oct 31. All of this underscores the sweeping changes in the economics of TV. When retransmission arrangements were first made 20 years ago, the balance of power was roughly equal: broadcasters had unique content and cable operators had market monopolies. While broadcasters did not charge for their signal, cable systems agreed to pay for new cable channels. Satellite television, Verizon FiOS and cable rivals have tilted the balance toward broadcasters. With ad revenue dropping, they want to get paid well for broadcast shows. There isn't much regulators can do. The law says the Federal Communications Commission must ensure companies negotiate in "good faith." That doesn't mean they can't deadlock over price. Washington must not put a thumb on the scale. The fact that broadcasters also use the public airwaves justifies intervention to bring transparency to the process. Meanwhile, Fox and Cablevision should cut a deal.
benton.org/node/44241 | New York Times
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FOX DISPUTE HEADED FOR DISH
[SOURCE: Bloomberg, AUTHOR: Kelly Riddell]
Dish Network Corp. customers in some cities may face their own Fox blackout next week, as the satellite company feuds with Fox parent News Corp. over programming fees ahead of a Halloween contract deadline. Dish's existing contract to carry more than 25 local Fox TV stations expires at midnight on Oct. 31. If an agreement can't be reached, the channels would go dark for more than 3 million customers in New York, Los Angeles, Washington and other cities. That would affect Fox shows such as "House" and potentially the last three games of the World Series. "Dish is more exposed to programming costs than any other pay-TV provider because they face a lot of competition," Matthew Harrigan, an analyst at Wunderlich Securities, said. "Fox is absolutely determined to force this through."
benton.org/node/44239 | Bloomberg
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MAP RETRANSMISSION FILING
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
In a letter to Federal Communications Commission Chairman Julius Genachowski, the Media Access Project contends that Fox is "improperly leveraging" its duopoly in New York, one that was secured through a now-expired FCC waiver. MAP wrote that the FCC's failure to force divestiture or to act on challenges to News Corp. requests for "regulatory largesse," have given the latter an "unfair advantage" in the retransmission dispute.
benton.org/node/44233 | Broadcasting&Cable
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FOX LOSES POLITICAL ADS
[SOURCE: MediaWeek, AUTHOR: David Goetzl]
With News Corp. and Cablevision continuing their standoff in New York, the local Fox station is bleeding political dollars, putting competitors in a position to grab share as Election Day nears. Well-funded candidates Sen. Charles Schumer and Linda McMahon are among those canceling lucrative buys with WNYW/Channel 5, which is off the air in Cablevision homes, thanks to the carriage dispute. A sales executive working for both stations tried convincing the campaigns to keep the political dollars flowing. The monies are crucial; they beef up revenue every two years, while tighten inventory, leading to higher prices for other advertisers. The Fox/MyNetworkTV sales executive told Schumer's campaign the stations still each reach 57% of the market. But he said Schumer wants off the air until "we are back at 100% DMA coverage." Schumer's agency had already sent payments, and asked that they be returned.
benton.org/node/44234 | MediaWeek
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CABLEVISION, FOX, VIEWERS
[SOURCE: MediaPost, AUTHOR: Wayne Friedman]
Who knew that Cablevision already makes lots of money by running Fox TV programming? At least that's what Kevin Reilly, president of Fox Entertainment, says. Reilly says Cablevision video customers pay around $15 a month for broadcast-network retransmission -- which, Friedman guesses is about a third of their overall monthly video bill. Why a third? Because that's around the share levels the broadcast networks have these days. No, it isn't the 50% or 60% of years ago, but still 30% is nothing to sneeze about. Reilly's point was that viewers don't really know much about the intricacies of the Cablevision/Fox snafu. But they know this: They contracted with Cablevision to get certain networks -- cable and broadcast -- and now they are not getting them. Like it or not, Cablevision monetizes broadcast viewership -- even though this is not a main selling point. Perhaps the company ought to start pushing its retail efforts for broadcasters a bit. Maybe existing Cablevision broadcast network partners -- ABC, NBC, and CBS -- might give them a little nudge.
benton.org/node/44232 | MediaPost
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CABLEVISION-FOX FIGHT MAY LEAD TO SWITCHES
[SOURCE: MediaWeek, AUTHOR: Wayne Friedman]
In analyzing the ongoing bitter battle between Cablevision and Fox, a quick survey from media analyst Richard Greenfield reveals that consumers essentially blamed both companies equally for their ongoing negotiation battle. 28% of those surveyed (285 respondents) say Cablevision is to blame, while 25% point the finger at Fox. Another 47% blame both companies equally. Greenfield says the media investment community is shocked this public battle has gone on as long as it has -- and believes Fox will ultimately prevail, in part, because the Federal Communications Commission lacks the power to intervene. There hasn't been much movement as far as subscribers leaving Cablevision -- perhaps 1% or less. They are mostly going to Verizon FIOS, some to DirecTV. But if nothing changes by next week, results from the survey suggests the floodgates will open -- 19% of Cablevision subscribers will bolt and a whopping 37% by the end of the month. What's holding subscribers back from make a quicker decision? 64% say they don't want the hassle of switching to another service; 17% say it's the value of the "triple play" bundle of services offered -- video, phone and Internet. Finally, 14% believe Cablevision is making the right decision in trying to keep prices down; another 5% say they don't watch the Fox network. What do Cablevision's 3 million New York area cable consumers miss the most? With the World Series now underway, 36% of consumers say its the Major League Baseball playoffs; 33% mentioned the NFL; 10% say it's missing "Glee"; 7% point to missing "House"; and 4% say it's the local news.
benton.org/node/44208 | MediaWeek
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MEDIA AND ELECTIONS
NET NEUTRALITY PLEDGE
[SOURCE: National Journal, AUTHOR: Eliza Krigman]
In an effort to make net neutrality a campaign issue and fight against corporate control of the Internet, the Progressive Change Campaign Committee announced 95 Democratic candidates Thursday that pledge to protect the openness of the Internet. "A neutral Internet allows small businesses, especially in rural parts of New Hampshire, to compete in the online marketplace and create jobs," said Ann McLane Kuster, a candidate for the second district in New Hampshire. "If phone and cable companies put tollbooths on the Internet, big corporations could afford to pay, but small businesses could not -- and that would stifle innovation and jobs."
benton.org/node/44206 | National Journal | NetNeutralityProtectors.com | PC Magazine
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CAN SOCIAL MEDIA PREDICT ELECTIONS?
[SOURCE: Fast Company, AUTHOR: EB Boyd]
In Nevada, Republican challenger Sharron Angle is not only leading Senate Majority Leader Harry Reid in the polls, she's also far ahead on the social nets. Angle's Facebook page had 104,059 fans vs. a mere 14,348 for Reid. Angle is also leading when it comes to voter sentiment -- by four points, according to the latest Rasmussen poll. And Facebook's public policy team says that Angle is piling on new supporters at a faster rate than Reid. In the last two weeks, Angle's Facebook fan base grew by 10,500, vs. just 921 for Reid. So does that mean Angle will knock Reid out of the Senate on election day next Tuesday? It's anyone's guess. No one's taken a hard look at the correlation between activity on Facebook and victory at the polls. But based on some of the primary races Facebook looked at, Sen Reid might want to start harvesting Farmville for friends. "Many candidates who won their primary races had more Facebook fans than their opponents and actively posted campaign updates on their Facebook Pages," Facebook's manager of public policy communications Andrew Noyes said.
benton.org/node/44193 | Fast Company
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TV GETS MOST OF AD SPENDING
[SOURCE: Los Angeles Times, AUTHOR: Meg James]
The Internet revolutionized political fundraising, but when it comes to spending those dollars, media strategists are voting old school. Candidates and supporters are caught up in a frenetic advertising blitz, on pace to drop a record $3 billion, according to analysts who monitor spending. Most of the money is going to an old-media workhorse: local TV stations. Two years ago, then-candidate Barack Obama successfully tapped the Internet to raise money and mobilize millions of voters. Politicians around the country, including California gubernatorial hopefuls Meg Whitman and Jerry Brown, have jumped on the social media bandwagon, including Facebook and Twitter. But as the campaign season heated up, analysts said, candidates scaled back on Internet ad buys in favor of the tried and true. How tried and true? Even the 235-year-old U.S. Postal Service is a conduit for more paid advertising -- by 13 to 1 -- than its digital descendant.
benton.org/node/44248 | Los Angeles Times
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MEDIA ENCOURAGING VOTERS
[SOURCE: Wall Street Journal, AUTHOR: Miriam Jordan]
Days before the midterm elections, Spanish-language media have unveiled a get-out-the-vote blitz to energize Hispanic voters, whose turnout could be decisive in many races. In a campaign called "Tu Voto, Tu Futuro" (Your Vote, Your Future), newscasts on Telemundo, the second-largest Spanish-language network, this week have devoted segments to such questions as how to vote and the importance of voting. Telemundo's website and social media are also participating. Meanwhile, Univision, the largest Spanish-language network, has teamed up with the National Association of Latino Elected and Appointed Officials, a non-partisan group, and ImpreMedia LLC, the largest Spanish-language publisher in the U.S., in another campaign that began airing this week. Despite the swelling importance of Latino voters, Spanish-language media haven't normally garnered the attention of political candidates because they are perceived as having the eyeballs of illegal immigrants or of non-English speakers alienated from the political process. That perception appears to be changing. This season, Univision hosted a debate with gubernatorial candidates in California and Florida, as well as Senate hopefuls in Florida. The chairmen of both the Democratic National Committee and the Republican National Committee appeared on Al Punto, a Sunday morning talk show on the network.
benton.org/node/44247 | Wall Street Journal
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INTERNET/BROADBAND
BROADBAND STIMULUS FLOWS TO KEY MEMBERS' DISTRICTS
[SOURCE: The Hill, AUTHOR: Sara Jerome]
Communications Daily is reporting that over 40 percent of stimulus funds that the National Telecommunications and Information Administration doled out for broadband went to or was shared by districts represented by House Commerce Committee members. NTIA records show that committee members' districts took in all or part of nearly $1.9 billion in grants even though these Members make up 14 percent of the House. The committee members whose districts were awarded the most funding were Reps Mike Doyle (D-PA) with $128 million, Joe Pitts (R-PA) with $128 million, George Radanovich (R-CA) with $128 million, Chris Murphy (D-CT) with $123 million and John Sarbanes (D-MD) with $115 million. Rep Joe Barton (R-TX), ranking member of the committee, said, "Many of us said when the stimulus package was being drafted that there was no justification for simply lining favored constituencies' pockets with taxpayers' money. And if there was going to be spending no matter what we said, logic screamed that it should have gone first to unserved areas where people can't get broadband at any price." The report qualified Barton's district as "left on the sidelines" as far as taking in broadband stimulus.
benton.org/node/44210 | Hill, The | The Hill - NTIA reacts
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HOLDREN ENDORSES NATIONAL BROADBAND PLAN
[SOURCE: IDG News Service, AUTHOR: David Ramli]
The White House's top science and technology adviser, John Holdren, is putting his weight behind the development of the controversial national broadband plan. Holdren, Director of the White House Office of Science and technology, said the national broadband plan has a lot to recommend it. "I am convinced that it would be of benefit in many different respects," he said. "There would be an improvement in the productivity of the science and engineering enterprises, but I can't say by how much and I don't know if anybody can." His comments come on the back of a recent report by the Government Accountability Office (GAO), which said any attempt to implement the national broadband plan would be "challenging" despite other countries having similar goals. "Actions will be required by governments at all levels and the private sector," the report said. "Implementing the plan's recommendations will require coordinating the work of multiple stakeholders and obtaining sufficient funding, among other actions." While Holdren said the plan would boost the populations and productivity levels of rural and regional areas, he said he was unable to provide quantitative estimates as it wasn't his field of expertise. "I would guess it is [worth billions of dollars] because the leverage is probably very substantial," he claimed. "But when it comes to budgets, this is a delicate matter because we have very difficult financial constraints and I don't want to endorse a particular number or version of the plan. "
benton.org/node/44194 | IDG News Service
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JUSTIFYING RURAL GOALS IN NBP
[SOURCE: Federal Communications Commission, AUTHOR: FCC Chairman Julius Genachowski]
On May 28, Members of Congress wrote to Federal Communications Commission Chairman Julius Genachowski raising concerns about the National Broadband Plan's impact on rural America. Some feel the plan exacerbate a urban-rural digital divide since it sets as goals of broadband at 100 megabits per second (Mbps) for 100 million homes, but also moves to transition the universal service fund to support broadband offerings at 4 Mbps. The practical impact is two very different goals for rural regions and more densely populated areas. Establishing such a low threshold for rural residents and businesses has the potential to hinder their ability to share in the transformative vision for broadband outlined in the plan. Further, it could impair the ability of telecommunications carriers to make investments necessary to deploy broadband services in our most rural areas.
On October 13, Chairman Genachowski replied with the reasoning behind the 4 Mbps goal which, he says, "represents one of the highest levels in the world today for universalization." Cost is a major factor. Subsidizing universal 100 Mbps deployment today could cost as much as $320 billion, which could increase the size of the universal service fund to $40-50 billion annually, and lead to a universal service fee. on average, of $30 per month per American household.
benton.org/node/44228 | Federal Communications Commission | Rep Matheson | link to additional letters
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ROCKEFELLER DISMISSES CITYNET OBJECTIONS
[SOURCE: Charleston Daily Mail, AUTHOR: George Hohmann]
Sen Jay Rockefeller (D-WV) has dismissed Citynet's objections to the way the state plans to spend a $126 million federal grant to build broadband infrastructure. Jim Martin, Citynet's president and chief executive officer, said he's disappointed with Rockefeller's position but plans to continue fighting to change the way the money is spent. Sen Rockefeller and Gov. Joe Manchin (D-WV) both mentioned the federal broadband grant during a press conference held to announce Verizon Wireless' investment in fourth-generation wireless technology in the state. Sen Rockefeller praised Manchin for writing "a fabulous grant." He recalled that Commerce Secretary Gary Locke came to Wheeling in February to announce that West Virginia would receive $126 million. The senator said a lot of people like to criticize the federal stimulus package. Sen Rockefeller, who chairs the Senate Commerce Committee, did not mention that he authored some of the legislation that put broadband project money in the stimulus package.
benton.org/node/44218 | Charleston Daily Mail
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BROADBAND CONSUMER SATISFACTION
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
Overall customer satisfaction with residential high speed Internet service declined slightly in 2010, according to the 13th annual J.D. Power and Associates survey of residential high-speed Internet services. While DSL customers remained more satisfied with their broadband services than cable modem subscribers, the gap between DSL and cable narrowed in 2010, J.D. Power found. Overall customer satisfaction in the 2010 survey stood at 634 on a 1,000-point scale, a drop of five points from 2009. DSL customers ranked their service at 638, versus 621 for cable modems, but the difference between the two types of service narrowed by eight index points to 17. Overall customer satisfaction with the cost of their service dropped by 12 points to 584 in 2010, but the percentage of customers who actually switched service providers during the last 12 months for reasons other than moving declined by more than 25% compared to 2009, J.D. Power found.
benton.org/node/44226 | Broadcasting&Cable
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GOOGLE IS 2ND LARGEST ISP
[SOURCE: ComputerWorld, AUTHOR: Carolyn Duffy Marsan]
Google is now the second-largest carrier of Internet traffic, according to data released this week by Arbor Networks. Google carries an average of 6.4% of all Internet traffic -- a figure that has grown by more than one percentage point since January. Only one tier 1 provider -- a wholesaler to other ISPs -- carries more Internet traffic on its backbone network than Google does, and this wholesaler (Arbor declined to identify the provider) carries a lot of Google traffic, too. The Arbor data shows that overall Internet volumes are increasing at a rate of 40% to 45% per year, and that Google is growing faster than that. Most of Google's data is video from its popular YouTube site. Arbor Networks conducts ongoing analysis of Internet traffic housed on the networks of 110 ISPs around the world.
benton.org/node/44195 | ComputerWorld
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RADIO
LPTV FREEZE
[SOURCE: CommLawCenter, AUTHOR: Lauren Lynch Flick,Christine Reilly]
The Federal Communications Commission's Media Bureau released a Public Notice announcing a freeze on the filing of applications for new digital low power television ("LPTV") and TV Translator stations, and major modifications to existing analog and digital LPTV and TV Translator stations in "rural areas." After the completion of the nationwide transition to digital broadcasting by full-power television stations, the FCC announced that it would permit the filing of applications for new digital LPTV and TV Translator stations on a first-come, first-served basis. The FCC announced the filings would commence in two phases, with the filing of applications in "rural areas" beginning on August 25, 2009, followed by "non-rural areas" on January 25, 2010. The January 25, 2010 filing date for non-rural areas was delayed until July 26, 2010, and then ultimately suspended indefinitely. "Rural" area stations are those with a transmitter site that is farther than 75 miles from the reference coordinates for the 100 largest cities listed in Appendix A of the Media Bureau's original Public Notice on this matter. The Public Notice indicates that the FCC will continue to accept and process applications for minor changes to existing facilities, flash-cut applications, digital companion channel applications for existing analog stations, and displacement applications where the applicant can demonstrate actual interference from existing full-power television operations, or from stations still operating on channels 52 to 69.
benton.org/node/44214 | CommLawCenter
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TELECOM
POLICY AND SMALL TELEPHONE COMPANIES
[SOURCE: Connected Planet, AUTHOR: Joan Engebretson]
The Telergee Alliance Benchmarking Study finds that 2009 was a challenging one for small U.S. telcos. The report's data underscores the importance of a number of policy issues that are critical to small telcos.
1) Rate of Return regulation: The report challenges the notion that rate of return regulation gives small rural telcos some sort of cushy existence. One of the most eye-opening findings of the report was that on average, small telco operating margins comprised just 10.3% of their average revenues for 2009. This was driven by a decrease in operating margins of 17.3% on the regulated side of the business, where 2009 operating margins averaged 10.2%. The idea behind the ROR system is to help ensure that small rural carriers earn a specific profit margin, with interstate access revenues distributed to carriers on that basis. The target number is higher than 10.2%.
2) The National Broadband Plan: The plan proposes to revamp access charge system to more accurately reflect the costs of terminating calls and eliminating ROR regulation. Small telcos oppose eliminating the ROR system, arguing essentially that the current system is not broken, so there's no need to fix it. Considering that the regulated part of telcos' business is declining as voice subscribership declines, and considering that's the part of the business where ROR comes into play, the possibility that ROR might be eliminated might not seem to be such a big deal. But some of the costs of building and maintaining broadband networks are shared with the regulated side of the business, helping to enable carriers to earn a reasonable return on those expenses. The majority of small telcos have been able to deploy broadband thanks, in no small part, to the ROR system. Small telcos are open to the idea of revamping the access charge program, but they'd like to see that happen without eliminating ROR regulation.
benton.org/node/44201 | Connected Planet
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CARLYLE BUYS SYNIVERSE, COMMSCOPE
[SOURCE: Washington Post, AUTHOR: Amy Thomson]
Carlyle Group, the world's second-largest private-equity firm, agreed to pay about $2.6 billion to take Syniverse Holdings Inc. private, its second telecommunications buyout in as many days. Carlyle is offering investors $31 a share in cash, Syniverse said. That's a 30 percent premium to Wednesday's closing price for the Tampa-based company, which makes mobile-phone messaging and network technology. The telecommunications-gear industry, where many companies were hit with spending cuts amid the global recession last year, is rebounding as demand for mobile data services and network equipment increases. Carlyle also agreed to pay $3.9 billion for fiber-optic cable maker CommScope Inc. to take advantage of demand for high-speed networks. Private-equity firms are attracted to the industry because of the "explosive, accelerating usage of mobile Internet devices," said John Bright, an analyst with Avondale Partners in Nashville, who rates Syniverse shares "market perform" and doesn't own any.
benton.org/node/44242 | Washington Post
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KIDS AND MEDIA
KIDS AND VIDEO GAMES
[SOURCE: SCOTUSblog, AUTHOR: Lyle Denniston]
The Supreme Court returns on November 2 to the question of whether to create a new exception to the First Amendment -- this time, to give state legislatures and Congress more authority to regulate the kinds of video games that can be sold or rented for playing by those under age 18. A clash of perceptions about video games dominates the briefs. Like much else in the Digital Age, video games have changed enormously over the past three decades — from simple batting of a virtual tennis ball across a virtual net to highly sophisticated narratives and images that can be creatively manipulated for different outcomes. Now, for the first time, the Supreme Court is poised to clarify just what forms of expression in that medium are entitled to protection as free speech under the First Amendment, and how far such protection might extend.
benton.org/node/44199 | SCOTUSblog
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FCC NEWS
FCC DEFENDS BUDGET REQUEST
[SOURCE: Federal Communications Commission, AUTHOR: FCC Chairman Julius Genachowski]
On June 9, Federal Communications Commission Chairman Julius Genachowski testified before the House Subcommittee on Financial Services and General Government Appropriations on the agency's budget. On October 15, Chairman Genachowski sent answers to follow-up questions from the hearing. Questions cover the National Broadband Plan, freeing spectrum now reserved for television for wireless broadband, digital literacy initiatives for small businesses, broadband deployment in US territories like Puerto Rico, the proposed Emergency Response Interoperability Center, hiring new staff, cybersecurity, broadcast television retransmission consent, broadband reclassification, and much more.
benton.org/node/44227 | Federal Communications Commission
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COMMUNITY MEDIA
These headlines presented in partnership with:
BALTIMORE COUNTY INSTALLS NEW PUBLIC BROADBAND SYSTEM
[SOURCE: Baltimore Sun, AUTHOR: Mary Gail Hare]
Baltimore County unveiled an $18.5 million plan that officials said will vastly improve the local Internet system, provide quicker links among public safety agencies, schools, hospitals and libraries, and enhance connections to statewide networks. The funding comes from the $115 million in federal stimulus money awarded to Maryland last month for broadband upgrades. The county will add $4 million in local spending to its $14.5 million share of the stimulus grant. County Executive James T. Smith Jr. called the broadband technology program "a real game-changer, both for enhancing the effectiveness and efficiency of critical government operations and also for helping to create jobs," during a news conference at the Baltimore County Public Safety Building. "This project will dramatically expand broadband capability in this county and state, and position our country for prosperity into the 21st century," Smith said.
benton.org/node/44186 | Baltimore Sun
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STORIES FROM ABROAD
PRIVACY RIFT BETWEEN US AND EU
[SOURCE: Washington Post, AUTHOR: Cecilia Kang]
The decision by the Federal Trade Commission to end the Google privacy investigation is a sharp contrast with the reaction of regulators in Europe. The United Kingdom has launched a new investigation into Google's collection of unencrypted WiFi data, exposing the company to potential fines. Germany told Google to mark its Street View cars that take pictures of neighborhoods and homes. The Czech Republic banned Google from expanding its mapping software program. The differences highlight an increasing gap between regulators in the United States, where the freewheeling Internet culture has birthed many of the social networking sites and search engines used worldwide, and governments in Europe and Canada, which tend to be much more aggressive about privacy. "Part of it is cultural, and part of it is that the U.S. and Europe have radically different privacy regimes," said Chris Calabrese, legislative counsel for the ACLU. "The European model is extensive data protection in private information, and the U.S. model is piecemeal." The result is a rising number of trans-Atlantic conflicts. The Obama administration has been criticized for its efforts to allow law enforcement to surveil Internet networks, for instance. In addition, the European Union is pushing back against U.S. demands to share data about U.S.-bound air passengers.
benton.org/node/44209 | Washington Post
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ADWORDS IN FRANCE
[SOURCE: Reuters, AUTHOR: Foo Yun Chee]
Google has pledged to change rules and procedures for its keyword advertising policy in France to settle an investigation by the French antitrust regulator and stave off a possible fine. The Autorite de la Concurrence had been investigating Google since June after French GPS and smartphone data services company Navx accused the world's No. 1 search engine company of abusing its dominant position by scrapping its AdWords contract. The AdWords service, where Google sells keywords that trigger advertisements, is the heart of the company's $23 billion online advertising operations and a pillar of commerce for Internet service providers. The French watchdog said that Google's binding commitments, which are valid for three years, were sufficient to address its competition concerns.
benton.org/node/44223 | Reuters
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