December 2010

LPTVs Ask For Time, Flexibility To Make Digital Switch

Fifteen low power television stations told the Federal Communications Commission that they need more time to make the transition to digital, and want the flexibility to experiment with delivering a combined broadcast and broadband service.

The FCC has proposed requiring low-power TV stations to make the digital transition by 2012. That is so it can begin auctioning off broadcast spectrum for wireless broadband per the national broadband plan. LPTV stations were not required to make the DTV transition back in 2009 along with full-power stations, in part because of the economic burden it would put on the stations.

The stations said that the 2012 shut-off date would require them to "expend strained resources" -- as much as $200,000 if they have to move to a new channel -- to make the DTV switch or lose their spectrum, and at a time when it was not yet clear whether they would be getting any money out of proposed incentive spectrum auctions. They want the FCC to wait until it has reclaimed and reallocated spectrum to mandate the conversion to ensure there will be spectrum left over for them. The stations also say they should have the flexibility to use their spectrum to deliver both broadcast and broadband service, which at least one commenter says will require the FCC not to lock them into the ATSC transmission standard for DTV.

Illegal file-sharers: friend of the struggling musician?

Here's the bad news, musicians. Illegitimate file downloading has definitely hurt the legal sale of your content, a recent academic paper confirms. This is particularly true for very popular music groups. But there's also good news -- at least for smaller bands. The widespread dissemination of MP3 files over the Internet has encouraged a "broader awareness" of lower-profile musicians, something that may have paid off for them through more concert ticket sales. "File-sharing may increase awareness of smaller, more obscure artists and their music by making the music available from more sources and at a much lower cost (or for free in the case of illegal file-sharing)," three scholars conclude. This has probably translated into more interest and boosted demand for their live concert appearances.

Is Phone Company's Plan to Turn Music Pirates Into Paying Customers "Game Changing"?

The customers of wireless provider Cricket Communications tend to skew toward the lower end of the income scale. Many have neither computers nor credit cards. Which means they've been left out of the iTunes revolution. As a result, some have taken to obtaining their music via file-sharing sites, often illegally, cobbling together an acquisition system that involves downloading tracks onto computers belonging to friends, libraries, or schools, then transferring the music to their phones. It’s not an ideal experience for the users. And it’s the opposite of ideal for the music industry. Which is why Cricket figured that if they could integrate a music service with their prepaid cellphone plans, they might be able to bring some of those pirates into the music-paying fold. And, of course, expand their own customer base in the process. Cricket is unveiling the fruits of those efforts at the Consumer Electronics Show in January. The new “Muve Music” service will be bundled into Cricket’s high-end wireless plan. For a flat $55 monthly fee, subscribers won't only get unlimited voice, text, and messaging, they'll also get unlimited access to the catalogs of Universal, Sony, Warner, and EMI.

Is a UN Internet takeover looming? Not quite

Perhaps you saw or heard the headlines last Friday or over the weekend: the United Nations could take over the Internet! (Or, as the Drudge Report put it, "UN PLANS INTERNET REGULATION.") This, you may not be surprised to learn, isn't quite accurate.

A UN working group is currently talking about what, if anything, it could do to improve the operation of its Internet Governance Forum (IGF), a group devoted to dialogue but possessing no decision-making powers. In May 2010, the UN's Commission on Science and Technology (CSTD) decided that the IGF could be improved after its initial five-year run. It called for a new working group that would "seek, compile and review inputs from all Member States and all other stakeholders on improvements to the Internet Governance Forum (IGF)." No problem there, really, but when CSTD actually assembled the working group in early December, only governments were on the list. The fear here is clear (try saying that three times fast): an IGF overhaul committee made up only of governments might get some very government-friendly ideas, such as that IGF should get more power and should serve as a forum for deciding on issues like Internet crime and security, without the involvement of ISPs, Internet companies, and nonprofit civil society groups.

Google Argues Street View Cars Did Not Violate Privacy Laws

Arguing that it broke no laws, Google is asking a judge to dismiss a potential class-action lawsuit stemming from the company's collection of data sent over WiFi networks.

"It is not unlawful under the Wiretap Act to receive information from networks that are configured so that communications sent over them are "readily accessible to the general public," Google says in papers filed late last week with the U.S. District Court James Ware in San Jose (CA). The lawsuit stems from Google's admission earlier this year that its Street View cars collected payload data -- including URLs, passwords and emails -- sent over unencrypted WiFi networks. Google apologized for the interception and said it intended to destroy the data. Nonetheless, the company's acknowledgment triggered investigations abroad and in the U.S. about whether Google violated privacy laws, including the federal wiretap law.

Copyright Royalty Board announces webcast royalty rates for 2011-2015

The Copyright Royalty Board (CRB) has announced the rates and terms that will apply to your operations for the period January 1, 2011-December 31, 2015.

In getting this decision out as quickly as it did, the CRB has managed to do two things this time around that it failed to do in the ratemaking proceeding for 2006-2010. First, it managed to crank out a final result in a timely fashion. (By way of contrast, the decision setting the rates for 2006-2010 (“Webcasting II”) wasn't published in the Federal Register until May, 2007, at which point it had to be applied retroactively to the preceding 16 months or so.) And second, the CRB appears to have achieved relative consensus. (Again by way of contrast, Webcasting II resulted in both a two-year court challenge and an attempted legislative response).

December 20, 2010 (LPFM; Sputnik 2; Network Neutrality)

BENTON'S COMMUNICATIONS-RELATED HEADLINES for MONDAY, DECEMBER 20, 2010

Just two events this week. The FCC holds an open meeting Tuesday (have we mentioned that?) http://bit.ly/fg1qmR and Broadband's Momentous Year http://bit.ly/e8xrjQ


COMMUNITY MEDIA
   The Little Bill That Could
   House OKs Bill to Allow More Low-Power Radio Stations

INTERNET/BROADBAND
   Sputnik 2: Time for Broadband
   National Broadband Rebuttal: Are We in for All, Or Just Enough
   Governments shouldn't have a monopoly on Internet governance
   111th Congress Fails to Enact Significant Cybersecurity Reform
   Rep Rush on the lookout for Kevin Martin
   Australian National Broadband Project Will Cost A$35.9 Billion

NETWORK NEUTRALITY
   FCC Dems Narrowing Network Neutrality Gaps
   It's Public Vs. Private In Upcoming Net Neutrality Vote
   The FCC's Threat to Internet Freedom
   Protecting the Internet
   Democrats put heat on Commissioner Copps on network neutrality vote
   Amazon opposes Genachowski's rules
   Bobby Rush Faults FCC Network Neutrality Proposal For Not Helping Low-Income Americans
   Sen Franken: Genachowski shouldn't be 'calling CEOs' on network neutrality
   Level 3 Calls For Internet Access Conditions On Comcast/NBCU
   What Level 3 v. Comcast Says About the FCC’s Obsolescence
   New GOP telecom team decries FCC process

TELEVISION
   FCC's network neutrality, merger decisions could set the dial on future of TV
   When All Content Is Personalized, Who Needs TV Networks?
   A Brand New Kind Of TV Season: The Retransmission-Blackout Season
   Google's TV Bid Meets Reality as CBS, Fox Bar Shows
   Google Delays TV-Set Offerings

MEDIA OWNERSHIP
   Google Aims Twin Daggers at Microsoft’s Heart
   Apple has 66% of online music market, Amazon second at 13%
   DirecTV: Comcast/NBCU Conditions Should Be Open-Ended
   Comcast, NBCU Sign Agreement With African American Groups
   Rep. Johnson urges FCC to approve NBC-Comcast merger

GOVERNMENT & COMMUNICATIONS
   Monitoring America
   Music Web Sites Dispute Legality of Their Closing

PRIVACY
   Google refuses to turn over Wi-Spy data to Connecticut Attorney General
   It’s Hard To Opt Out Of Behavioral Targeting? Really? Our Experiment
   Facebook gearing up for privacy battles in next Congress
   Targeted TV Ads Set for Takeoff

ADVERTISING
   Targeted TV Ads Set for Takeoff
   Online Ads Pull Ahead of Newspapers

HEALTH
   Department of Transportation proposes cellphone ban for truck drivers
   Push for Safety Oversight of Electronic Medical Records is Moving at a Crawl
   FCC's Performance Management Weaknesses Could Jeopardize Proposed Reforms of the Rural Health Care Program
   Public Health Information Technology: Additional Strategic Planning Needed to Guide HHS's Efforts to Establish Electronic Situational Awareness Capabilities

RESEARCH
   White House issues policy on political interference with federal scientists
   Science funding bill passes US Senate
   How America will collapse

MEDIA & ELECTIONS
   Misinformation and the 2010 Election: A Study of the US Electorate

WIRELESS
   How Apple's iPhone Widens the Trade Deficit With China

TELEPHONY
   Chairman Rockefeller Reveals Investigation Into Telephone 'Mystery Charges'

POLICYMAKERS
   Dems Announce Ranking Members on Key Committees

STORIES FROM ABROAD
   Google Fights Growing Battle Over “Search Neutrality”
   Australian National Broadband Project Will Cost A$35.9 Billion
   Telcos to benefit from Australia's NBN redesign

MORE ONLINE
   Survey: Parents start to see TV, Internet the same
   How Twitter Use Has Changed, From 2009 to 2010
   Tech Revival Lifts Silicon Valley

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COMMUNITY MEDIA

THE LITTLE BILL THAT COULD
[SOURCE: The Huffington Post, AUTHOR: Timothy Karr]
[Commentary] On December 18, Congress passed the Local Community Radio Act. This legislation opens up radio spectrum to hundreds, if not thousands, of local independent radio stations (also known as LPFM). Its passing will bring new choices and voices on the radio dial nationwide, but is especially relevant to a broadcast area reaching 160 million people who lived in areas where these stations had previously been barred from local airwaves.
benton.org/node/46815 | Huffington Post, The
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INTERNET/BROADBAND

SPUTNIK 2
[SOURCE: Benton Foundation, AUTHOR: Charles Benton]
[Commentary] President Barack Obama has called for rebuilding on a new and stronger foundation for economic growth. “We need to do what America has always been known for: building, innovating, educating, making things,” The President said. “ We don't want to be a nation that simply buys and consumes products from other countries. We want to create and sell products all over the world that are stamped with three simple words: ‘Made In America.’ That's our goal.” The President touted investment in infrastructure as a key element for our reaching our goal. Economic competition, he said, “is going to be much more fierce and the winners of this competition will be the countries that have the most educated workers, a serious commitment to research and technology, and access to quality infrastructure like roads and airports and high-speed rail and high-speed Internet.” The investment in broadband should be informed by the investments made possible by the stimulus package and fueled by the reform of the Universal Service Fund.
http://benton.org/node/46746
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INTERNET GOVERNANCE
[SOURCE: Google, AUTHOR: Vint Cerf]
The beauty of the Internet is that it’s not controlled by any one group. Its governance is bottoms-up—with academics, non-profits, companies and governments all working to improve this technological wonder of the modern world. This model has not only made the Internet very open—a testbed for innovation by anyone, anywhere—it's also prevented vested interests from taking control. But last week the UN Committee on Science and Technology announced that only governments would be able to sit on a working group set up to examine improvements to the IGF—one of the Internet’s most important discussion forums. This move has been condemned by the Internet Governance Caucus, the Internet Society (ISOC), the International Chamber of Commerce and numerous other organizations—who have published a joint letter (PDF) and launched an online petition to mobilize opposition. Today, I have signed that petition on Google’s behalf because we don't believe governments should be allowed to grant themselves a monopoly on Internet governance. The current bottoms-up, open approach works—protecting users from vested interests and enabling rapid innovation. Let’s fight to keep it that way.
benton.org/node/46718 | Google | UN
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CYBERSECURITY MEASURE FAILS
[SOURCE: GovInfoSecurity.com, AUTHOR: Eric Chabrow]
The don't ask, don't tell provision wasn't the only section excised from the latest version of the National Defense Authorization Act of 2011. The provision that would have established an Office of Cyberspace in the White House, headed by a Senate-confirmed director, does not appear in H.R. 6523, the latest version of the defense bill. In May, just before the House of Representatives approved the defense bill, Reps Diane Watson (D-CA) and James Langevin (D-RI) successfully sponsored a rider to not only create a Senate-confirmed cyberspace director in the White House but also establish a board to assure compliance with federal IT security regulations as well as require agencies to automate continuous monitoring of their IT systems and establish processes to acquire secure software. Langevin's press secretary said she doubted the lawmakers would be able to attach a similar rider to the revised bill. "While anything can happen," spokeswoman Joy Fox said , "it is our understanding that there will be no cyber amendments in any defense bill that passes this year." The exclusion of the Watson-Langevin amendment from the defense act means that Congress has failed to enact any significant cybersecurity legislation in the past two years. Several cybersecurity bills had passed the House during the current 111th Congress, but no significant IT security bill ever came up for a vote in the Senate.
benton.org/node/46725 | GovInfoSecurity.com
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RUSH VS MARTIN ON DIVERSITY
[SOURCE: The Hill, AUTHOR: Sara Jerome]
Former FCC Chairman Kevin Martin did not do enough to enhance minority access to the Internet during his tenure leading the agency, Rep. Bobby Rush (D-IL) charged in a speech last week. Rep Rush said the Republican chairman promised to make progress on minority issues but ultimately failed to deliver. "I talked to Kevin publicly and privately on numerous occasions, and I kept pressing him about what the Bush Administration would do to enhance minority participation in the development of broadband," Rep Rush said. "And you know what he kept telling me? He'd say, 'Bobby, I promise I'm going to include your concerns as part of my agenda.'" Rep Rush charged that minorities nevertheless did not increase their access to broadcasting licenses during Martin's tenure. He also communicated that he's not letting Martin off the hook.
benton.org/node/46801 | Hill, The
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NETWORK NEUTRALITY

DEMS NARROWING GAPS
[SOURCE: National Journal, AUTHOR: David Hatch]
Apparently, Federal Communications Commission Chairman Julius Genachowski is making progress in narrowing gaps with his two Democratic colleagues over his controversial plan to adopt sweeping new rules for the Internet. Chairman Genachowski needs the support of Commissioners Michael Copps and Mignon Clyburn to approve his network neutrality proposal, which would create enforceable rules designed to protect the openness that is the Internet's hallmark. While both Commissioners Copps and Clyburn are network neutrality advocates, they've complained that the chairman's framework cuts too many breaks for major telecommunications and cable providers of broadband. The two Republicans on the five-member commission remain staunchly opposed, arguing that the proposed rules amount to unnecessary government regulation of the Internet. An FCC source familiar with the negotiations said progress is being made in three key areas: addressing concerns about wireless carriers, limiting Internet toll lanes and adding protections for a new online pricing model.
benton.org/node/46812 | National Journal
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THE FCC'S THREAT TO INTERNET FREEDOM
[SOURCE: Wall Street Journal, AUTHOR: FCC Commissioner Robert McDowell]
[Commentary] Tomorrow morning the Federal Communications Commission (FCC) will mark the winter solstice by taking an unprecedented step to expand government's reach into the Internet by attempting to regulate its inner workings. In doing so, the agency will circumvent Congress and disregard a recent court ruling. Nothing is broken and needs fixing, however. The Internet has been open and freedom-enhancing since it was spun off from a government research project in the early 1990s. Its nature as a diffuse and dynamic global network of networks defies top-down authority. Ample laws to protect consumers already exist. To date, the FCC hasn't ruled out increasing its power further by using the phone monopoly laws, directly or indirectly regulating rates someday, or expanding its reach deeper into mobile broadband services. The most expansive regulatory regimes frequently started out modest and innocuous before incrementally growing into heavy-handed behemoths. On this winter solstice, we will witness jaw-dropping interventionist chutzpah as the FCC bypasses branches of our government in the dogged pursuit of needless and harmful regulation. The darkest day of the year may end up marking the beginning of a long winter's night for Internet freedom.
benton.org/node/46810 | Wall Street Journal
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PROTECTING THE INTERNET
[SOURCE: New York Times, AUTHOR: Editorial staff]
[Commentary] The intensely competitive nature of the Internet is vital to the American economy and democracy. So we worry that rules proposed this month by Julius Genachowski, the chairman of the Federal Communications Commission, to guarantee the Internet’s openness may not be able to guarantee the survival of that competition. Any new rules must prevent broadband service providers from foreclosing on competition. As proposed, the rules appear to come up short. Fortunately, there is time to improve the proposal by Dec 21. It is virtually assured that the two Republican commissioners will vote against the rule. But the three Democratic commissioners should be able to close the gaps and protect open, competitive broadband. Understanding that they can't foresee every eventuality, we suggest that they keep open a Plan B in case their new guidelines don't do the job: the FCC should keep open its proceedings to redefine broadband as a telecom service. That’s what it is.
benton.org/node/46776 | New York Times
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PRESSURE ON COPPS
[SOURCE: The Hill, AUTHOR: Sara Jerome]
The Democrats have a message for Democratic Federal Communications Commission member Michael Copps: Don't screw things up on network neutrality. Democrats allied with FCC Chairman Julius Genachowski are working to put public pressure on Commissioner Copps as the network neutrality vote draws near. Chairman Genachowski needs Commissioner Copps to vote for his plan during a commission meeting on Dec 21 if the rules are to pass. As a result, Democrats who support the plan are pushing this message in the media: If Copps doesn't vote for Genachowski's plan, the consequences will reverberate all the way up to the White House. They are arguing that the damage could even hurt President Obama. A prominent Democrat close to the White House said it this way on Dec 17: "If Copps votes no on Tuesday, he'd be handing the president a huge loss at a time when the Democrats should have a big win."
benton.org/node/46775 | Hill, The
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AMAZON OPPOSES NETWORK NEUTRALITY PROPOSAL
[SOURCE: The Hill, AUTHOR: Sara Jerome]
Did public interest organizations mischaracterize Amazon's stance on the current network neutrality proposal? Well, perhaps not after all. Amazon is walking a (that is, almost invisible) rhetorical line with respect to this proceeding. Amazon supports the framework the Federal Communications Commission (FCC) is using for its proposal; however, it opposes the rules as they are currently written. Amazon's Paul Misener says: "Although we support the chairman’s 'proposed policy framework' — in other words, the division between broadband Internet access service ('BBIAS') on one hand and specialized services on the other — Amazon does not support the currently proposed rules. As I said in my letter, Amazon believes that specialized services 'should not harm the delivery of content via BBIAS, nor impede the growth of BBIAS, nor be offered on unequal terms' (that is, bits are bits). Until the rules are modified to meet these criteria, Amazon does not support the proposal."
benton.org/node/46774 | Hill, The
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RUSH ON NETWORK NEUTRALITY AND LOW-INCOME PEOPLE
[SOURCE: National Journal, AUTHOR: Juliana Gruenwald]
Rep Bobby Rush (D-IL) asserts that the network neutrality proposal being considered by the Federal Communications Commission does not help low-income communities as much proponents claim. Addressing a forum sponsored by the Joint Center for Political and Economic Studies, he said that while he supports proposals to ensure network neutrality, it has limited impact on poor and minority communities. "Even though this issue has been framed in terms of broadband access for poor and minority people to attract people like me to their audience and to add potency to their arguments, the real battle has more to do with which giant can topple or get the best of the other," he told the audience. "It annoys me when people who purport to represent people of color start talking about low-income or poor people, as if they intimately know about their problems and challenges. Unlike those people, I do know and understand." The congressman said regulators should focus more on increasing the number of minority-owned broadcasting and other media companies. "In order to achieve the desired outcomes of inclusion, affordability, ubiquitous access to broadband services and more true universal service reform for the unserved and underserved in the most enduring fashion possible, the door to ownership has to swing open far more widely than where it's perched today," Rep Rush said.
benton.org/node/46771 | National Journal
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FRANKEN CRITICIZES GENACHOWSKI
[SOURCE: The Hill, AUTHOR: Sara Jerome]
Sen Al Franken (D-MN) accused Federal Communications Commission Chairman Julius Genachowski of catering his network neutrality proposal to industry in a lengthy floor speech on Dec 18. He said he is "concerned when I hear that the chairman of the FCC is calling the CEOs of companies they are supposed to be regulating, seeking their public endorsement of his net neutrality proposal."
benton.org/node/46797 | Hill, The
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LEVEL 3 ENTERS COMCAST-NBC DEBATE
[SOURCE: Multichannel News, AUTHOR: Todd Spangler]
Level 3 Communications brought the fight with Comcast over Internet connection fees to the Department of Justice and the Federal Communications Commission, asking the agencies to impose conditions on Comcast's deal for NBC Universal that would guarantee large backbone providers like Level 3 wouldn't have to pay Comcast to deliver Internet traffic for five years. Specifically, Level 3 wants the FCC and DOJ to impose conditions in effect for five years following the closing of the Comcast/NBCU deal that would force the cable operator to provide cost-free interconnects with requesting Internet backbone companies "meeting such nondiscriminatory, fair and reasonable requirement as Comcast may choose to specify." Level 3 suggested the criteria for settlement-free interconnection may include the number of announced routes and the extent of customer interaction between the networks.
benton.org/node/46729 | Multichannel News | National Journal | Connected Planet
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LEVEL 3, COMCAST, AND THE FCC
[SOURCE: GigaOm, AUTHOR: Stacey Higginbotham]
The “commercial disagreement” between Comcast and Level 3 is still ongoing, and while many (including the cable company) portray it as a simple peering disagreement, it’s also illuminating two things about the current state of the Internet: The first is that the lack of competition in access providers is the underlying issue at the core of this dispute, and the second is that this lack of competition means we need to come to some sort of regulatory compromise on net neutrality or lay new pipe to businesses and consumers. Laying new pipe isn't really an option, however, and the Federal Communications Commission is so emasculated, it’s possible that we won't get regulations to solve this problem. If that’s the case the web as we know it is in trouble.
benton.org/node/46760 | GigaOm
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GOP AIMS AT FCC
[SOURCE: The Hill, AUTHOR: Sara Jerome]
A day after announcing their new roles, the GOP's telecom leaders got straight to business, coming out in force against the Federal Communications Commission's (FCC) network neutrality proceeding. Incoming House Commerce Chairman Fred Upton (R-MI), Communications Subcommittee Chairman Greg Walden (R-OR) and Vice Communications Chairman Lee Terry (R-Nebraska) wrote to the FCC with concerns that the agency has not been transparent about its effort to regulate Internet lines. They demanded that FCC Chairman Julius Genachowski release the text of his network neutrality proposal, which the FCC will vote on next week. They said the draft should be subject to public comment, or at least revealed so that stakeholders can meet with the FCC about the proposal. "Your proposal to adopt network neutrality rules is likely the most controversial item the FCC has had before it in at least a decade. It holds huge implications for the future of the Internet, investment, innovation, and jobs," they said, arguing that the process has been cloaked in "secrecy."
Rep Upton went on to promise to "vigorously fight any effort to regulate the Internet, pledging strict oversight of the FCC and hearings early in the 112th Congress."
benton.org/node/46734 | Hill, The | National Journal
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TELEVISION

FCC AND THE FUTURE OF TV
[SOURCE: Washington Post, AUTHOR: Cecilia Kang]
America's beloved television is getting an extreme Internet makeover, and questions over what shows viewers will get online and how much they pay for them could soon be resolved by the Federal Communications Commission. Over the next few weeks, the FCC will decide on Internet access regulation and a proposed merger by Comcast and NBC Universal that could chart a new course for the future of TV. Those deliberations would create first-time rules affecting how television series and movies reach consumers with Internet connections and how much companies can charge for the service. It's the government's strongest effort yet to lay out some boundaries in the headlong rush for online video. The picture looks fuzzy for Internet users. As drafted, the policies under deliberation may slow the trend of consumers breaking free of their cable and satellite bundles to watch cheaper or free episodes of shows such as "Mad Men" and "Dancing with the Stars" via the Internet. The changes also may make it harder for new online start-ups to compete with television giants, some experts say.
benton.org/node/46773 | Washington Post
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WHO NEEDS TV NETWORKS
[SOURCE: GigaOm, AUTHOR: Ryan Lawler]
The world is gradually moving toward on-demand viewing based on personalized recommendations. But in a world where viewers choose what to watch based on their own personal interests, what happens to the gatekeepers who previously had toiled to make sure people tuned in to a certain show at a certain time? When content is discovered, through recommendation engines or by other means, it doesn't matter to the user who made the show, what channel it’s on, or even whether it’s new or not. For users, the result is a steady stream of new and fresh content, and also content that is more relevant and engaging than what one might find by purely channel surfing. And for content creators — especially independent content creators — personalized recommendations serve as a way to level the playing field. No longer does it matter whether a show appeared on broadcast, cable or online; the only factor that matters is whether or not a user might be inclined to watch it. But for programmers — especially those at big media companies — the democratization and personalization of content is a direct threat to their business models. The ability to program a show lineup becomes less important when lead-ins are out of the control of the network. So what’s the future of network programming, and how do media companies reach an audience that is not tuning in to a certain channel at a certain time? How do they get audiences to watch their shows, when an algorithm is in control of the recommendations? In a personalized world, there will be more emphasis on quality of content, certainly, and niche content and the long tail will have its time to shine. But there will also be a place for sponsored placement, of the sort we already see on YouTube, for catching the user’s eye. The question is if that kind of placement will be enough to capture new audiences that otherwise might not tune in.
benton.org/node/46757 | GigaOm
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TV BLACKOUT SEASON
[SOURCE: MediaPost, AUTHOR: Wayne Friedman]
[Commentary] There's a new TV season developing: not the premiere TV season, not the winter weekend NFL season, not the replacement show mid-season, nor the repeat season. It's the retransmission blackout season. Seems like the end of the year is now the time for cable operators, TV station groups and cable networks to get their business-war gear on. Big TV marketing campaigns can be waged by each side -- almost to the levels of starting up new shows. Some believe the Federal Communications Commission should step in to stop transmission blackouts, forcing these powerful companies into a cooling-down period or mediation. Why bother? We can do our own voluntary cooling-off period -- which would mean less pressure on network programming executives. What better Christmas present can we give those hard-working TV staffers who are only looking out for our entertainment needs?
benton.org/node/46756 | MediaPost
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MEDIA OWNERSHIP

GOOGLE AIMS AT MICROSOFT
[SOURCE: Bloomberg, AUTHOR: Rich Jaroslovsky]
[Commentary] Forget about Google’s struggle with Facebook for eyeballs and programmers. Pay no attention to its fight with Apple over smartphones, or to any other tech rivalry. The search giant’s war with Microsoft is The Big One, the confrontation that will determine what kind of future Microsoft has, and maybe if it even has a future. And the two new weapons Google unsheathed last week carry an unmistakable message of mortal peril. First came the Nexus S, the new Google-labeled smartphone and the first to run “Gingerbread,” Google’s latest Android operating system. Then came a plain black laptop called the Cr- 48, the first computer to run the company’s Web-based Chrome Operating System. On the surface, neither seems particularly menacing. The Nexus S, made by Samsung, is the successor to one of the most hyped and least successful products of 2010, the lovely and ill-fated Nexus One. And the Cr-48 isn't even for sale. It’s a generic prototype that Google is making available to thousands of developers, companies and others to get them familiar with the concept of the new operating system before commercial versions from manufacturers show up next year.
benton.org/node/46733 | Bloomberg | The Huffington Post
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ONLINE MUSIC MARKET
[SOURCE: ars technica, AUTHOR: Jacqui Cheng]
Despite unrelenting competition from numerous online music vendors -- particularly Amazon -- iTunes has managed to actually increase its market share. The music service now makes up 66.2 percent of the online music market, according to new numbers from NPD, with Amazon coming in second with 13.3 percent for the third quarter of 2010. iTunes has managed to increase its share from 63.2 percent earlier this year, even as Amazon has made aggressive efforts to chip away at iTunes' customer base and artist exclusives. In fact, Amazon was so good at pushing its "Daily Deal" promotions (deeply discounted albums of hot bands) that Apple apparently felt threatened by it -- an anonymous music industry exec said earlier this year that Apple was stepping up pressure on artists to avoid Amazon's music promotions, lest they lose their valuable marketing support from iTunes. It appears that iTunes' growth doesn't seem to have come at the expense of Amazon's, however. Amazon's share of the music market also increased from 11 percent earlier this year, when it was tied with Walmart for second place in the US. Both music stores are pulling ahead, likely because (at least according to a previous NPD report) the two stores cater to their own user bases.
benton.org/node/46732 | Ars Technica
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DIRECTV ON COMCAST-NBC
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
DirecTV told the Federal Communications Commission that conditions on the Comcast/NBCU merger should last for at least six years, but after that should only be lifted when and if Comcast/NBCU can demonstrate they are no longer needed. According to an ex parte filing, DirecTV executives told Joshua Cinelli, media advisor to FCC Commissioner Michael Copps, that the deal conditions should be at least as long as those in the News/Hughes and Adelphia/Comcast/Time Warner Cable deals, and that those conditions should include online access and arbitration provisions because the deal presents "a combination of broadband and content never seen before" at a time when the convergence of that content gives Comcast the opportunity and incentive to withhold it from competitors, like DirecTV, or discriminate in pricing.
benton.org/node/46730 | Broadcasting&Cable
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COMCAST/NBC AGREEMENT
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
Comcast and NBCU have reached a memorandum of understanding (MOU) with the NAACP, National Urban League and National Action Network (Rev. Al Sharpton) on the steps, most already outlined, it will take to promote diversity in corporate governance, employment/workforce recruitment and retention, procurement, programming, and philanthropy and community investments. Comcast has already made numerous commitments to boosting African American participation in its business, including outlining them in a letter to Congress in connection with a Chicago forum on the proposed deal. But Thursday's announcement puts those commitments in the form of a binding pledge to these groups, similar to ones struck with Hispanic and Asian American groups.
benton.org/node/46728 | Broadcasting&Cable | The Hill
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JOHNSON BACKS COMCAST-NBC
[SOURCE: The Hill, AUTHOR: Gautham Nagesh]
House Judiciary Committee Subcommittee on the Courts and Competition Chairman Hank Johnson (D-GA) wrote to the Federal Communications Commission urging the agency to approve Comcast's proposed acquisition of NBC Universal before the end of the year. "Based on extensive Congressional hearings and what I have learned in discussions with a wide range of stakeholders, I believe the parties have satisfactorily demonstrated that the proposed transaction will not undermine competition in the media and telecommunications industry," wrote Chairman Johnson. According to campaign finance data from OpenSecrets, Comcast was one of the leading donors to Johnson's campaign committee during the last cycle, contributing $5,000. The entertainment industry was also among his strongest supporters, chipping in a total of almost $15,000.
benton.org/node/46770 | Hill, The
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GOVERNMENT & COMMUNICATIONS

MONITORING AMERICA
[SOURCE: Washington Post, AUTHOR: Dana Priest, William Arkin]
Nine years after the terrorist attacks of 2001, the United States is assembling a vast domestic intelligence apparatus to collect information about Americans, using the FBI, local police, state homeland security offices and military criminal investigators. The system, by far the largest and most technologically sophisticated in the nation's history, collects, stores and analyzes information about thousands of U.S. citizens and residents, many of whom have not been accused of any wrongdoing. The government's goal is to have every state and local law enforcement agency in the country feed information to Washington to buttress the work of the FBI, which is in charge of terrorism investigations in the United States. This story examines how Top Secret America plays out at the local level. It describes a web of 4,058 federal, state and local organizations, each with its own counterterrorism responsibilities and jurisdictions. At least 935 of these organizations have been created since the 2001 attacks or became involved in counterterrorism for the first time after 9/11.
benton.org/node/46803 | Washington Post
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MUSIC WEB SITES
[SOURCE: New York Times, AUTHOR: Ben Sisario]
When federal authorities shut down five Web sites last month on suspicion of copyright infringement, they gave no warning and offered no details of their investigation, and they have not filed any criminal charges since. But after the seizure warrant used in the operation was released last week, the operators of several of the sites said in interviews that they were innocent of infringement, and criticized the investigation for misrepresenting how their sites worked. In a 69-page affidavit seeking the warrant, an agent of Immigration and Customs Enforcement, the unit of the Department of Homeland Security that did the investigation, said the five sites — rapgodfathers.com, torrent-finder.com, rmx4u.com, dajaz1.com and onsmash.com — were used “to commit or facilitate criminal copyright infringement.” The agent also said the Motion Picture Association of America and the Recording Industry Association of America, the trade groups for the major film studios and record labels, had confirmed that the music and movies on the sites had not been released with the authorization of their copyright holders. Yet after being shown the affidavit, the operator of dajaz1.com — a widely read hip-hop blog that posts new songs and videos — disputed many of the warrant’s examples of what it called copyright infringement. He said that, like much of the material on his site, the songs had been sent to him for promotional purposes by record labels and the artists.
benton.org/node/46809 | New York Times
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PRIVACY

GOOGLE REFUSES ATTORNEY GENERAL
[SOURCE: The Hill, AUTHOR: Gautham Nagesh]
Google has refused to turn over personal data collected inadvertently by its Street View cars, according to a statement from Connecticut Attorney General Richard Blumenthal (D). “I am disappointed by Google’s failure to comply with my information demands. We will review any information we receive and consider whether additional enforcement steps — including possible legal action — are warranted," Blumenthal said. Friday was the deadline to comply with the request. “Access to information Google improperly collected from unsecured wireless computer networks may be needed to prevent a repeat," Blumenthal said. "Google’s story has changed from claiming it only collected fragments to acknowledging possible capture of full e-mails, making review of the data even more urgent."
benton.org/node/46769 | Hill, The | Reuters
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HEALTH

CELLPHONE BAN FOR TRUCK DRIVERS
[SOURCE: Reuters, AUTHOR: John Crawley]
The Transportation Department proposed prohibiting commercial truck and bus drivers from using cellphones while behind the wheel. The rule would affect approximately 4 million drivers, who are already banned by the government from texting while working. The proposal is the latest move in Transportation Secretary Ray LaHood's stepped-up campaign against distracted driving in which he has questioned cellphone use in passenger cars and "hands free" communications technology.
benton.org/node/46767 | Reuters | Sens Rockefeller and Lautenberg | read the proposed rule
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EHRs OVERSIGHT
[SOURCE: Center for Public Integrity, AUTHOR: Emma Schwartz]
Nearly two years after the Obama Administration announced plans to spend $40 billion to help doctors and hospitals adopt electronic medical records, government officials are still grappling with how best to regulate these systems to assure patient safety. And a meeting this week made it clear firm rules are still many months away. Although federal officials have acknowledged that electronic medical record systems can create new safety concerns, the administration appears content to let the Institute of Medicine (IOM), which it has contracted to study the topic, chart a path through the bureaucratic confusion “on what the federal agencies should do to maximize the safety of health information technology.” The nonprofit institute is part of the National Academies and conducts research on health topics. The directive came Dec 14 from the government’s top e-health official, David Blumenthal, during the first public meeting of an IOM committee tasked by Blumenthal’s office to come up with recommendations on how to improve the safety of electronic health records. Blumenthal asked members to issue their report by next September so that his office could use the material in drafting detailed rules for how and when the federal government will pay doctors and hospitals for using digital health systems to improve patient care.
benton.org/node/46751 | Center for Public Integrity
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GAO ON FCC'S RURAL HEALTH PROGRAM
[SOURCE: Government Accountability Office, AUTHOR: Mark Goldstein]
The Federal Communications Commission's (FCC) Rural Health Care Program, established in 1997, provides discounts on rural health care providers' telecommunications and information services (primary program) and funds broadband infrastructure and services (pilot program). GAO was asked to review (1) how FCC has managed the primary program to meet the needs of rural health care providers, and how well the program has addressed those needs; (2) how FCC's design and implementation of the pilot program affected participants; and (3) FCC's performance goals and measures for both the primary program and the pilot program, and how these goals compare with the key characteristics of successful performance goals and measures. FCC has not conducted an assessment of the telecommunications needs of rural health care providers as it has managed the primary Rural Health Care Program, which limits FCC's ability to determine how well the program has addressed those needs. Participation in the primary program has increased, and some rural health care providers report that they are dependent on the support received from the program. FCC has been successful in disbursing over 86 percent of all committed funds. However, FCC has disbursed only $327 million in total over the 12 years of the primary program's operation-- less than any single year's $400 million funding cap. FCC has frequently stated that the primary program is underutilized and has made a number of changes to the program, including the creation of the pilot program. If FCC does not correct deficits in performance management, it may perpetuate the same performance management weaknesses in its stewardship of the new rural health care programs that it has proposed. GAO recommends that the FCC Chairman assess rural health care providers' needs, consult with knowledgeable stakeholders, develop performance goals and measures, and develop and execute sound performance evaluation plans. (GAO-11-27, November 17.)
benton.org/node/46750 | Government Accountability Office | E-supplement to GAO-11-27
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GAO ON HHS STRATEGIC PLAN
[SOURCE: Government Accountability Office, AUTHOR: Valerie Melvin]
A catastrophic public health event could threaten our national security and cause hundreds of thousands of casualties. Recognizing the need for efficient sharing of real-time information to help prevent devastating consequences of public health emergencies, Congress included in the Pandemic and All-Hazards Preparedness Act in December 2006 a mandate for the Secretary of the Department of Health and Human Services (HHS), in collaboration with state, local, and tribal public health officials, to develop and deliver to Congress a strategic plan for the establishment and evaluation of an electronic nationwide public health situational awareness capability. Pursuant to requirements of the act, GAO reviewed HHS's plans for and status of efforts to implement these capabilities, described collaborative efforts to establish a network, and determined grants authorized by the act and awarded to public health entities. HHS did not develop and deliver to congressional committees a strategic plan that demonstrated the steps to be taken toward the establishment and evaluation of an electronic public health situational awareness network, as required by PAHPA. GAO is recommending that HHS develop and implement a strategic plan to guide and integrate efforts to establish electronic situational awareness capabilities. (GAO-11-99, December 17.)
benton.org/node/46748 | Government Accountability Office
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RESEARCH

ON POLITICAL INTERFERENCE
[SOURCE: nextgov, AUTHOR: Aliya Sternstein]
White House officials on Friday issued long-delayed guidance for federal agencies on protecting scientific research from political interference. The rules, which President Obama ordered the Office of Science and Technology Policy to produce by summer 2009, are the administration's response to years of allegations that agency appointees have forced researchers to suppress facts on controversial issues, such as global warming and stem-cell research, for political reasons. The rules include several provisions that affect federal employees, including stipulations on hiring, professional development, media relations and participation in scholarly societies. Agency heads must report to the White House by April 17, 2011, on steps they have taken to implement the new policies. Under the rules, agency leaders are supposed to strengthen the credibility of government research by ensuring applicants selected for federal science jobs are chosen based on their scientific and technical knowledge, credentials, experience and integrity. In addition, officials must set clear standards on conflicts of interest for employees and rules for protecting whistleblowers.
benton.org/node/46755 | nextgov | Holdren's memo | White House blog
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COMPETES ACT MOVES THROUGH SENATE
[SOURCE: Nature, AUTHOR: Ivan Semeniuk]
In a flurry of last minute legislating, the US Senate has passed a version of a bill that would reauthorize the America COMPETES Act. The bill would keep on track a series of budget increases for key science funding agencies including the National Science Foundation (NSF), the National Institute of Standards and Technology (NIST) and the US Department of Energy Office of Science. The bill has its origins in the landmark 2005 report “Rising Above the Gathering Storm”, recently revised, which raises concerns that US competitiveness is on the decline in a rapidly globalizing marketplace. The report calls for substantial reinvestments in basic research and science education.
benton.org/node/46754 | Nature | CBO scoring of an amendment to the bill | Chairman Rockefeller | Chairman Gordon
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HOW AMERICA WILL COLLAPSE
[SOURCE: Salon, AUTHOR: Alfred McCoy]
[Commentary] The demise of the United States as the global superpower could come by 2025. Future historians are likely to identify the Bush administration’s rash invasion of Iraq in that year as the start of America's downfall. However, instead of the bloodshed that marked the end of so many past empires, with cities burning and civilians slaughtered, this twenty-first century imperial collapse could come relatively quietly through the invisible tendrils of economic collapse or cyberwarfare. American leadership in technological innovation is on the wane. In 2008, the U.S. was still number two behind Japan in worldwide patent applications with 232,000, but China was closing fast at 195,000, thanks to a blistering 400 percent increase since 2000. A harbinger of further decline: in 2009 the U.S. hit rock bottom in ranking among the 40 nations surveyed by the Information Technology & Innovation Foundation when it came to "change" in "global innovation-based competitiveness" during the previous decade. Adding substance to these statistics, in October China's Defense Ministry unveiled the world's fastest supercomputer, the Tianhe-1A, so powerful, said one U.S. expert, that it "blows away the existing No. 1 machine" in America. Add to this clear evidence that the U.S. education system, that source of future scientists and innovators, has been falling behind its competitors. [McCoy is the J.R.W. Smail Professor of History at the University of Wisconsin-Madison]
benton.org/node/46747 | Salon
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MEDIA & ELECTIONS

MISINFORMED ELECTORATE
[SOURCE: WorldPublicOpinion.org, AUTHOR: Clay Ramsay, Steven Kull, Evan Lewis]
The findings of a study to determine whether Americans perceived that the information in this post-Citizens United environment was reliable, or whether they perceived a high level of misinformation. In addition, another goal was to assess the quality of the information in the election environment by asking a wide range of questions on issues that were prominent in the campaign and determining whether, and to what degree, voters were misinformed on these issues. The key findings of the study are:
Perceptions of Misleading and False Information: An overwhelming majority of voters said that they encountered misleading or false information in the last election, with a majority saying that this occurred frequently and occurred more frequently than usual.
Evidence of Misinformation Among Voters: The poll found strong evidence that voters were substantially misinformed on many of the issues prominent in the election campaign, including the stimulus legislation, the healthcare reform law, TARP, the state of the economy, climate change, campaign contributions by the US Chamber of Commerce and President Obama’s birthplace. In particular, voters had perceptions about the expert opinion of economists and other scientists that were quite different from actual expert opinion.
Variations in Misinformation By Voting Behavior: There were significant differences between those who voted Democratic and Republican in the level of misinformation on various issues that were prominent in the campaign and that respondents said were important in shaping their votes.
Variations in Misinformation by Exposure to News Sources: Consumers of all sources of media evidenced substantial misinformation, suggesting that false or misleading information is widespread in the general information environment, just as voters say they perceive it to be. In most cases increasing exposure to news sources decreased misinformation; however, for some news sources on some issues, higher levels of exposure increased misinformation.
benton.org/node/46723 | WorldPublicOpinion.org
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WIRELESS

IPHONE AND TRADE
[SOURCE: Fast Company, AUTHOR: David Zax]
The iPhone is the invention of an American company, Apple, and ought to benefit our nation's economy. Why, then, is it contributing $1.9 billion to the US trade deficit? That figure comes from a working paper by researchers at the Asian Development Bank Institute in Tokyo, and was spotted by Mother Jones. A paltry minority of the components of the iPhone are actually made in the U.S.--equivalent to only 6 percent of the phone's $179 wholesale cost. The great bulk of the parts are made by Japanese, German, and Korean companies; they're then funneled through China, where they're assembled at Foxconn, and sent out at an inflated price. According to the study authors, Yuqing Xing and Neal Detert: "Global production networks and highly specialized production processes apparently reverse trade patterns: developing countries such as the [People's Republic of China] export high-tech goods—like the iPhone—while industrialized countries such as the US import the high-tech goods they themselves invented." The authors offer a scenario in which Apple suddenly decides not to pursue profit maximization, dumps the oft-criticized Foxconn, and decides to pursue a model of corporate responsibility and patriotic we're-in-it-togetherness. It's true that U.S. workers fetch about 10 times as much as Chinese workers, and the manufacturing costs would rise to $68 per phone from about $6.50 per phone. But if Apple sold the phones at an average of $500 (already the asking price for some models), they say, it would still clear a 50% profit margin.
benton.org/node/46721 | Fast Company
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TELEPHONY

MYSTERY TELEPHONE CHARGES
[SOURCE: National Journal, AUTHOR: Juliana Gruenwald]
Senate Commerce Chairman Jay Rockefeller (D-WV) has been investigating "mystery charges" on telephone bills for several months. Although the investigation is ongoing, Chairman Rockefeller said the practice of third-parties placing charges on phone bills has raised "serious concerns." Investigators are looking at AT&T, Verizon and Qwest to determine the companies' role in "cramming," which the committee defines as a "deceptive practice that involves placing unauthorized mystery charges on telephone bills." So far, investigators have determined that many of the companies allowed to charge consumers have faced customer complaints, received failing grades from the Better Business Bureau, and often charge for services that are offered for free or through existing service plans.
benton.org/node/46765 | National Journal | Chairman Rockefeller
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The Little Bill That Could

[Commentary] On December 18, Congress passed the Local Community Radio Act. This legislation opens up radio spectrum to hundreds, if not thousands, of local independent radio stations (also known as LPFM). Its passing will bring new choices and voices on the radio dial nationwide, but is especially relevant to a broadcast area reaching 160 million people who lived in areas where these stations had previously been barred from local airwaves.

FCC Dems Narrowing Network Neutrality Gaps

Apparently, Federal Communications Commission Chairman Julius Genachowski is making progress in narrowing gaps with his two Democratic colleagues over his controversial plan to adopt sweeping new rules for the Internet.

Chairman Genachowski needs the support of Commissioners Michael Copps and Mignon Clyburn to approve his network neutrality proposal, which would create enforceable rules designed to protect the openness that is the Internet's hallmark. While both Commissioners Copps and Clyburn are network neutrality advocates, they've complained that the chairman's framework cuts too many breaks for major telecommunications and cable providers of broadband. The two Republicans on the five-member commission remain staunchly opposed, arguing that the proposed rules amount to unnecessary government regulation of the Internet. An FCC source familiar with the negotiations said progress is being made in three key areas: addressing concerns about wireless carriers, limiting Internet toll lanes and adding protections for a new online pricing model.

It's Public Vs. Private In Upcoming Net Neutrality Vote

No one is neutral about controversial network neutrality rules that are set for a vote at the Federal Communications Commission on Tuesday. Public interest groups say the rules favor giant phone and cable companies that spend millions lobbying the agency and Congress. The two Republican appointees on the FCC have already declared their opposition, too.