December 2010

Intel Wins Approval for McAfee Acquisition From FTC

Intel, the world’s largest chipmaker, won clearance from the Federal Trade Commission to acquire McAfee, bringing the company a step closer to expanding into the security-software market. Intel is still working with the European Commission as that organization reviews the purchase. In August, Intel agreed to buy the company for $7.68 billion, saying it will use the deal to create chips with built- in security. The acquisition of McAfee would be the biggest purchase in Intel’s history.

Google Should Pay for Internet Network as Web Content Expands, France Says

Google and other providers of Web content aren't contributing enough to the costs of telecommunications networks and may be forced to pay, the French minister responsible for the Internet said.

The French government plans to convene a working group including Internet companies with “the objective that services that occupy the largest part of our networks contribute to the deployment and maintenance of those networks,” Industry Minister Eric Besson. The minister’s comments back up complaints from some of Europe’s largest telecom operators, who are investing in networks to cope with the growth of services like Google’s YouTube. France Telecom Chief Executive Officer Stephane Richard, Telefonica SA CEO Cesar Alierta and Telecom Italia SpA CEO Franco Bernabe have said that Internet companies are getting an unfair deal from their networks.

Forget getting Netflix or Hulu Plus on TiVo-made cable DVRs

TiVo's Premiere-series DVRs offer access to Netflix's Watch Instantly streaming service, and the company has announced that Hulu Plus support is coming soon. But if you get your TiVo Premiere from your cable company, you won't be able to access either service.

Rightsholders are using licensing terms to prevent these services from directly competing with paid video-on-demand from your cable provider. Both Netflix and Hulu have confirmed that the contracts in place with content providers specifically forbid offering subscription service to DVRs that are leased to customers through cable companies. Such subscription services would compete directly with TV providers' VOD services which charge as much as $3 per TV episode and $10 for a movie. This kind of access blocking isn't new, either. Movie studios have gotten Netflix to agree to a 28-day window for access to new releases in exchange for better access to back-catalog content for its streaming service. The 28-day window is intended to help prop up dwindling DVD sales as customers continue to transition to on-demand streaming video services. It seems content providers are happy to license content to Netflix or Hulu as long as they can keep it from supplanting existing revenue sources and can find ways to try to charge multiple times for the same content.

The Broadband Plan and the Power of Data Driven Thinking

[Commentary] The fourth and final column in a debate about the role of competition, broadband speeds and the goals of the National Broadband Plan between Blair Levin, the plan’s author and Craig Settles, a broadband consultant.

The National Broadband Plan team was trying to solve many problems (as directed by Congress) but the first problem, as explicitly stated by Congress, was ensuring “that all people of the United States have access to broadband capability.” To do that, one has to define what level of broadband capability government should be willing to subsidize, how much it will cost and how the government will pay for it. So it’s difficult for me to take seriously any criticism of the plan that doesn't provide concrete answers to those questions. Settles doesn't provide those answers, though in his latest discourse, he appears to be more willing to accept the 4 Mbps speed target for the subsidy for residential, as long as the plan allows for that goal to be reconsidered, which it does. If I'm reading Settles right, then perhaps on that issue, we don't disagree, though if so, it undercuts his earlier attacks on the plan. If I'm reading him wrong, then once he answers those three questions we can have a far more productive dialogue.

NECA releases Trends 2010

This report outlines the state of technology of NECA’s 1,100 traffic sensitive (TS) pool members. These telcos serve some of the smallest customer bases spread over vast geographical areas covering 39 percent of total U.S. land mass, requiring more resources per customer than their larger counterparts. Nonetheless, they provide a variety of broadband-based solutions to help keep local businesses, educational institutions and rural economies vibrant. Adoption and deployment rates among pool members track closely with national averages. While traditional broadband delivery methods continue to grow among pool members - DSL lines increased by 10 percent over 2009 - they are also deploying other technologies, including:

  • Ethernet - between 2007 and 2010, the percentage of pool members offering Ethernet transmission services rose from 18 percent to 36 percent. Ethernet is a low-cost packet technology that can be used to transport voice, data and video services.
  • IP enabled switches (softswitches) - the number of members who reported deploying softswitches rose by ten percent, from 402 to 445. Softswitches provide integrated voice and broadband services to customers over a common network.

The Looming Cable Monopoly

Labels are important in policy debates. It may be time for yet another label to enter the lists: “the looming cable monopoly.” It is gaining strength, and it is not terribly interested in the future of the Internet. This is the central crisis of our communications era.

How many cities have access TV? More than you might think

"Do we need PEG anymore?" asked Ellen Goodman in an FCC Future of Media hearing she co-moderated last April. Panelists Joaquin Alvarado and Nan Rubin responded, in so many words, yes. Another response however could be added from the countless municipalities who use community access cable TV day-in and day-out to present live and repeat coverage of various government meetings to their residents. How long must these municipalities remain "countless"? How many, you may ask? — and which — U.S. cities are using community access cable TV? Among the major cities (the 276 with populations greater than 100,000), it's actually easier to list those which aren't — a mere 22.

Broadband: Four Legislative Steps To Ensure Economic Growth

State legislators can take the four following revenue-neutral and widely supported steps to lead in broadband policy.

  1. Create a Broadband Task Force: As each state has its own needs - a unique geography, a unique demography, and a unique economy - its policy makers must assess on their own how to best invest in broadband to achieve full access. To accomplish this, more than 22 states have established broadband councils or task forces, and out of these, 19 were created by the state legislative branch. For instance, Oregon established the Oregon Broadband Advisory Council and the Oregon Broadband Advisory Council Fund to encourage and support the deployment of broadband telecommunications services and reduce barriers to broadband adoption, especially within un-served and under-served populations.
  2. Map High-Speed Internet Infrastructure: Mapping high-speed Internet availability and adoption, and making that information accessible to the public, is an important tool for legislators and local planning groups who seek to evaluate the current status of their states’ high- speed Internet infrastructure and utilization. In Washington state, progressive legislators enacted a bill to collect and map data on broadband access and adoption. The bill directs the state’s Department of Information Services to develop a map that demonstrates where broadband services are and are not currently available, and to work with other agencies to identify the communities most in need of new or additional broadband services.
  3. Create and expand programs to bridge the digital divide: The federal government and states already have programs that subsidize telephone services for low-income and rural residents. With the success of this program, called the Universal Service Fund, we can direct a portion of those existing monies to high-speed Internet. In its 2010 Telecommunications Plan, the Vermont Department of Public Service recommends the inclusion of broadband in the state’s Universal Service Fund so that it can become affordable to low-income and rural households.
  4. Launch Digital Literacy Programs: Beyond investing in broadband infrastructure and finding ways to make broadband services more affordable, state legislators should promote investments in education and community media programs to overcome the digital divide. Washington state legislators recently established a program to provide resources to community technology centers that provide hands-on technology access and training to residents. And New Mexico enacted a bill allowing media literacy courses in secondary public schools - incorporating media literacy as a more central part of a school curriculum to give New Mexico children better economic opportunities in a global market.

If enacted, policies like these will encourage true access to, as well as adoption and utilization of broadband - sparking job growth and securing infrastructure needed to grow the American economy. Legislative oversight over broadband does not undermine competition, it encourages it by creating mechanisms that assess the need for broadband access and takes the steps to stimulate broadband adoption by making it affordable and usable. Modernizing communications policy does not mean deregulating it, but ensuring that no one is left in the digital dark. In short, state government must propel action that will result in more investment and broadband for all.

Making Up with Non-Political Advertisers

In Las Vegas, where the economic downturn hit with a particular vengeance, the November election was a terrific shot in the arm for TV stations. But businesses that were used to using television to get their message across had a bad time. They were virtually forced off the air in October, when the political mud-slinging, particularly between Democrat incumbent Sen. Harry Reid and Republican challenger Sharron Angle, got really fierce.

Because of Reid’s position as Senate Majority Leader and Angle’s as a darling of the Tea Party, that race drew extreme attention — and advertising. Consider this: According to the Campaign Media Analysis Group, in a study it conducted for CNN, during the second week in October alone campaign ads ate up 3,010 minutes of time on Vegas stations. That’s more than 50 hours. In just one week. Angle spent $31.2 million on her losing effort; Reid spent $24.9 million to win. Less dramatic millions were spent electing Republican Brian Sandoval governor of Nevada over Reid’s son, Rory. KSNV, the NBC affiliate in Las Vegas, was one of the principal beneficiaries, according to General Manager Lisa Howfield. To give you an idea how good things were for KSNV, she says, the station's October ad revenues were 23% better than 2008, which was a presidential election year, and a stunning 300% higher than October 2009. At the low end of the rate card, KSNV got $1,200 for ads that once sold for $250. What advertisers — and Howfield — didn't recognize is how wide the Citizens United decision by the Supreme Court last January would open the political advertising floodgates.

Google: carriers should give Android users freedom to unlock bootloader

In a statement on the official Android developer blog, Google security engineer Nick Kralevich highlighted the relative openness of Google's new Nexus S smartphone, confirming that it provides a simple and easy way to unlock the bootloader for the purpose of installing third-party firmware -- much like its predecessor, the Nexus One. More significantly, he contends that it is possible for Android to meet the security requirements of the mobile carriers without necessitating the kind of enthusiast-unfriendly lockdown mechanisms that are common on handsets that are sold at subsidized prices with contracts.