October 2010

TV show allows Iraqis to voice their anger live

"Baghdadia and the People" is broadcast live across Iraq six mornings a week and replayed at 6 p.m. Its concept is simple. Host Minas Suheil holds a red microphone and Iraqis speak to him and their nation about their suffering, the lack of services, jailed family members, dead children, abuses by Iraq's security forces and a government that still hasn't formed nearly eight months after Iraq's parliamentary elections.

"The anger before the elections was enclosed in hope. Now it is open rage," Suheil said. "This rage will get to a point where it can no longer be controlled. It's dangerous." Despite the considerable shortcomings of democracy in Iraq, over the past few years Iraqis have become emboldened to openly criticize their leaders. More often than not, though, it is to no avail. The nation's government is ranked the fourth most corrupt in the world. Iraq's security forces are infamous for abuses; many prisons are well below international standards; and inmates often are mistreated.

Verizon Wireless to pay largest-ever settlement and consumer refund for "mystery fees"

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.

"Mystery solved: today's settlement with Verizon Wireless is about making things right and putting consumers back in the driver's seat," said Michele Ellison, Chief of the FCC's Enforcement Bureau. "Today's settlement requires Verizon Wireless to make meaningful business reforms, prevent future overcharges, and provide consumers clear, easy-to-understand information about their choices. I am gratified by the cooperation of the Verizon Wireless team in the face of these issues, and pleased they are taking the high road."

The Enforcement Bureau began investigating Verizon Wireless in January 2010 after large numbers of consumer complaints and press reports about unexplained data charges. 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.
The investigation found that approximately 15 million "pay-as-you-go" customers were or may have been overcharged for data usage over the course of three years, from November 2007 to the present.

According to the settlement, the erroneous mystery fees from Verizon Wireless were caused by:

unauthorized data transfers initiated automatically by applications (like games) built into certain phones;
accessing certain web links that were designated as free-of-charge (e.g., the Verizon Wireless Mobile Web homepage);
unsuccessful attempts to access data when there was insufficient network coverage to complete the requested data transfer; and
unwanted data transfers initiated by third parties and affecting customers who had content filters installed on their phones.

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.

FCC Is Said to Mull Refunds in Cablevision-Fox Dispute

Apparently, the Federal Communications Commission is looking into whether Cablevision Systems Corp. customers should get refunds for programming missed during a dispute with News Corp.'s Fox.

Retransmission Fallout: Fox Loses Political Dollars

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.

MAP Says Fox Waivers Give Broadcaster Undue Retransmission Clout

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.

Everyone's Got A TV Price: Cablevision, Fox, And Even New York-Area Viewers

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.

Tech money flows to Whitman, Boxer bypasses Fiorina

Political contributions show that the technology industry has split its bet, backing Whitman but not Fiorina.

Atherton, one of the richest towns in America and home to such Silicon Valley luminaries as Google CEO Eric Schmidt, didn't even want Fiorina to run for office, judging by its political donations. Fiorina's Republican primary opponent, a moderate longtime politician from Silicon Valley, won the financial race in Atherton but lost the nomination. On the surface, Fiorina and Whitman have so much in common they appear to be the same person. They were two of Silicon Valley's most powerful business leaders. They are Republicans. And they are both using their business record, and wealth, to start a political career at one of the top elected offices in California. But in the place that made them household names, Meg and Carly, as they are commonly known in these parts, are seen as very different people shaped by very different jobs. Meg's the insider, Carly's the outsider. Meg's the builder, Carly's the fixer -- or destroyer. Meg's a detached analyst while Carly's a saleswoman who dreams big.

CEOs from the state's top information technology companies appear to be betting on Democratic Sen. Barbara Boxer even though she faces one of the industry's own.

Despite running one of nation's top tech companies for six years, former Hewlett-Packard CEO Carly Fiorina, the GOP Senate nominee, has received far less campaign cash from her former peers at California's top IT companies than Sen Boxer, according to an examination of the latest campaign finance figures for the 2010 campaign cycle compiled by the Center for Responsive Politics. Fiorina is locked in a tight race with Boxer and has raised nearly $18 million as of Oct. 13 -- including $5.5 million of her own money. Despite this, Boxer has outpaced her, collecting $26 million in total contributions. Among those who have contributed to Boxer include Oracle CEO Larry Ellison, who gave Boxer $4,800 last November - more than seven months before Fiorina won the GOP Senate nomination. Other Boxer contributors include: Google CEO Eric Schmidt with $2,000; Autodesk CEO John Bass with $2,400; Netflix CEO Reed Hastings with $4,800; Cisco CEO John Chambers, a Republican who has given $4,800, and eBay CEO John Donahoe with $2,400.

Fred Upton: No network neutrality deal this year

Don't expect any action on network neutrality in a lame duck session if Republicans capture the House next week, the front-runner to chair the House Commerce Committee says. Rep Fred Upton (R-MI) said that Republicans would have little incentive to support a temporary compromise that even telecom giants like AT&T and Verizon seemed to support.

"Knowing we'll have a much stronger hand come January, there's no reason for us to compromise or save someone's bacon," he said. Rep Upton also tossed cold water on any potential rewrite of the Communications Act that governs the FCC and its authority over phone, Internet and cable networks. "There is no need at this point to rewrite the [act] unless the FCC grabs too much power and we have to physically rein them in," he said. "You shouldn't have an overbearing FCC. Let the market work itself," Rep Upton said. "By allowing companies to compete in an unregulated forum, you're going to allow the faster deployment of new services and new equipment consumers are going to want."

After the Election: Vote for Barton!

Rep. Joe Barton (R-TX) said that he's "confident" of his ability to nab an influential House chairmanship if Republicans win control of the chamber in Nov. 2's elections. Rep Barton, the top GOP member of the House Energy and Commerce Committee, suggested that he fully intends to push a bid to become chairman of that committee, despite rules and colleagues' concerns that could threaten his ability to take that post. Barton's apology to BP CEO Tony Hayward over the summer was a gaffe that troubled many members of Barton's own party. House Republicans' rules limit to three the number of terms a lawmaker can serve in the top position on a committee. A member like Barton would need to apply for a waiver in order to serve again, since he's served one term as chairman, from 2004 to 2006, and has served as the committee's ranking member from 2007 to the present. The GOP's rules are ambiguous, though, as to whether time served atop a committee while in the minority should count against members. But even if Barton were to win his rules challenge, he's still expected to face a competitive race within the House GOP conference. Reps. Fred Upton (R-MI), John Shimkus (R-IL) and Cliff Stearns (R-FL) are all seen as other candidates for the chairmanship.

As to what he'll actually do if he wins the chairmanship, expect vigorous oversight of federal agencies, including the Federal Communications Commission. That means look for hearings and information requests on a host of issues. One of the ten things he has pledged to "uncover" in the first six months of next year is "why the Obama administration's Federal Communications Commission thinks the Internet needs federal government regulation for the first time." He called getting the answer one of the ways to "start cleaning up the mess." Additional oversight issues include the broadband stimulus spending and build-outs under National Telecommunications & Information Administration and Agriculture Department programs, as well as on Universal Service Reform and privacy.

Justifying Rural Goals in the National Broadband Plan

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

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