January 2011

D Block auction sheds police, fire support

The International Association of Fire Fighters (IAFF) and the Fraternal Order of Police (FOP) have stopped lobbying for a proposal to ask first responders to share a valuable chunk of airwaves with commercial providers. Both organizations had bucked the public safety community last year by supporting a proposal to auction off the D Block of spectrum to fund an emergency broadband network, rather than directly allocating this block to emergency groups. After the Obama Administration backed reallocation last week, a reversal came from these two key groups who had underpinned auction proponents' claims that the public safety community supported their view.

Stimulus funds help wire rural homes for Internet

Up in rural northern Vermont, it took until the 1960s to run power lines to some towns -- decades after the rest of America got turned on. These days, it's the digital revolution that remains but a rumor in much of rural America. Dial-up user Val Houde knows this as well as anybody. After moving here four years ago, the 51-year-old mother of four took a correspondence course for medical transcription, hoping to work from home. She plunked down $800, took the course, then found out the software wasn't compatible with dial-up Internet, the only kind available to her. Selling items on eBay, watching videos, playing games online? Forget it. The connection from her home computer is so slow, her online life is one of delays, degraded quality and "buffering" warning messages. So she waits until the day a provider extends broadband to her house.

Bolstered by billions in federal stimulus money, an effort to expand broadband Internet access to rural areas is underway, an ambitious 21st-century infrastructure project with parallels to the New Deal electrification of the nation's hinterlands in the 1930s and 1940s.

Critics Tell FCC To Watch New Comcast-Controlled NBCU

The ink was hardly dry on the Comcast/NBCU deal Jan 29 when critics -- including Free Press. Media Access Project, Common Cause and the Writers Guild of American East -- filed a letter with the Federal Communications Commission promising to keep a close eye on the new company and asking FCC Chairman Julius Genachowski to do the same.

"The Comcast-NBC merger is the new face of media consolidation," they wrote. "As organizations representing hundreds of thousands of diverse, local citizens around the country, we are pledging today to be vigorous watchdogs, monitoring this newly merged media giant, and consistent advocates for the public interest. We ask you to make the same pledge."

Comcast Takes Over NBC Universal

Comcast, the nation’s largest cable TV company, took control of NBC Universal late on Jan 28, making it the first cable company to own a major broadcast network.

The takeover gave the cable distributor a 51 percent control of NBC Universal, which owns the nation’s fourth-ranked broadcaster, NBC; the Universal Pictures movie studio and related theme parks; and a bevy of cable channels including Bravo, E and USA. The deal had raised fears that Comcast might abuse its control of NBC Universal to favor the 23 million who rely on it for cable TV service and the 17 million who pay for Internet connections. But the Justice Department and the Federal Communications Commission forced Comcast to make the full suite of NBC Universal content available as a single package to online competitors on terms comparable to those reached with more established rivals, like Dish Network and DirecTV. In the deal, Comcast paid General Electric just under $6.2 billion in cash and contributed its pay TV channels like E Entertainment Television and the Golf Channel, worth $7.25 billion, to NBC Universal. G.E.’s stake in NBC Universal fell to 49 percent from 80 percent, but G.E. plans to diminish that to zero by being paid out from the venture over about seven years. This week, G.E. bought out the 20 percent stake held by Vivendi of France for $5.8 billion in order to complete the deal.

Jeff Zients Will Lead Reorganization of Federal Government

“We cannot win the future with a government of the past,” President Barack Obama said during the State of the Union address. The fact is that we live and do business in the information age, but the last major reorganization of the government happened in the middle of the last century. Over the past few decades, there has not been a business or large organization that has not rethought, retooled, and revamped how they did their job to respond to a growing, more competitive global economy and an ever-changing technology landscape. Yet too often, it seems that the federal government is stuck in the age of black-and-white television while we are competing in the age of the iPad. For millions of Americans, this can lead to frustrating encounters trying to get the services you need and a waste of taxpayer dollars. For many businesses, it means that they may not have all the assistance they need to compete around the world. For instance, we have more than a dozen different agencies involved in exports. They all work with well with each other, but this is certainly not the optimal organization or allocation of resources if you were designing a system from scratch.

President Obama has picked Jeffrey Zients, our nation’s first Chief Performance Officer (CPO), to lead the reorganization effort. The first focus will be looking at trade and exports to see how we can better reform these functions to give American companies a leg up in the global economy.

For the past two years as CPO and Deputy Director for Management of OMB, Jeff has led our Accountable Government Initiative (AGI), the President’s initiative to make government more efficient and effective, open and responsive. On his watch, we have cut government waste, bringing down the amount of improper payments on our way of reducing them by $50 billion by 2012; starting to get rid of unused federal buildings and property; overhauled how IT is purchased and used, saving billions; and deployed the latest technologies to make it easier of people to get the information and services they need from their government. Jeff’s years of private sector experience means that he brings a unique perspective to his job as CPO and to this new assignment. Having been a CEO, management consultant, and entrepreneur, Jeff has a deep understanding of business strategy, process reengineering and operational management. In fact, Jeff spent the majority of his career leading two companies that help corporations around the world improve their performance by adopting best management practices.

The President has also asked Lisa Brown to take on a new position and work with Jeff on this endeavor. Lisa is currently Assistant to the President and Staff Secretary and previously served as Co-Chair of the Agency Review Working Group for the Obama-Biden Transition Project. In these capacities and from her prior government service, she has developed a keen understanding of how the executive branch works. She also brings management and legal acumen, having run a national non-profit organization and been a partner at a DC law firm.

Telenor moves to block VimpelCom deal

Telenor has commenced legal action that could delay plans by VimpelCom, Russia’s second-largest mobile phone operator, to buy the telecoms assets of Naguib Sawiris, the Egyptian entrepreneur.

Telenor, VimpelCom’s second-largest investor, has asked for the postponement of a planned special meeting of the Russian operator’s shareholders on March 17 to approve the proposed transaction with Wind Telecom, a private company that controls Sawiris’ telecom assets. Norway’s leading telecoms company has begun arbitration proceedings in London to try and preserve its voting rights at VimpelCom, which would be reduced by the Wind Telecom transaction. The deal is supposed to be completed by the end of June, but Telenor does not want the special VimpelCom shareholder meeting to take place until after the arbitration is concluded. It could therefore mean the completion timetable slips. Telenor’s move underlines how its relations with Russia’s Alfa Group, VimpelCom’s largest investor, have ruptured again.

Governments Go Online in Fight Against Terrorism

In recent years, governments and allied grass-roots advocacy groups had largely ceded cyberspace to extremists, who use the Internet to recruit, raise money, spread their ideology and disseminate instructions on bomb-making and other terrorist techniques. Governments have carried out covert operations to undermine or take down extremist Web sites, but many pop back within days or weeks. Now these governments, often working with international organizations like the United Nations and European Union, and more quietly with private or nonprofit groups, are opening a counterattack to try to undermine the appeal of terrorists, expose their lack of legitimacy, and attack the credibility of their ideology and online messengers. Counterterrorism officials from more than 30 countries met in Riyadh, Saudi Arabia last week under the auspices of the United Nations and Naif Arab University to share tactics and strategies on how to use the Internet to counter the appeal of extremist violence. “The terrorist message, for all its deviancy and destructiveness, has gone unchallenged for too long,” said Richard Barrett, a conference organizer who heads a United Nations office that monitors sanctions on Al Qaeda and the Taliban.

Without Internet, Egyptians find new ways to get online

"When countries block, we evolve," an activist with the group We Rebuild wrote in a Twitter message on Jan 28. That's just what many Egyptians have been doing this week, as groups like We Rebuild scramble to keep the country connected to the outside world, turning to landline telephones, fax machines and even ham radio to keep information flowing in and out of the country. Although one Internet service provider -- Noor Group -- remains in operation, Egypt's government abruptly ordered the rest of the country's ISPs to shut down their services just after midnight local time Thursday. Mobile networks have also been turned off in some areas. Egyptians with dial-up modems get no Internet connection when they call into their local ISP, but calling an international number to reach a modem in another country gives them a connection to the outside world. We Rebuild is looking to expand those dial-up options. It has set up a dial-up phone number in Sweden and is compiling a list of other numbers Egyptians can call. It is also distributing information about its activities on a Wiki page.

Egypt orders mobile phone carriers to suspend service

The Egyptian government has ordered all wireless phone carriers to curb mobile services in the country.

Vodafone, one of Egypt's largest mobile providers, said in a statement: "All mobile operators in Egypt have been instructed to suspend services in selected areas. Under Egyptian legislation the authorities have the right to issue such an order and we are obliged to comply with it. The Egyptian authorities will be clarifying the situation in due course." The mobile phone shutdown follows the government ordering the suspension of Internet service on Jan 28, just after midnight Egypt time. On Jan 27, BlackBerry Wed data was blocked, and on Tuesday, Twitter and Facebook were unavailable to Egyptians. The protests in Egypt have centered around frustrations with high unemployement and the presidency of Hosni Mubarak, who has been in power for more than three decades. The lack of Internet access has caused alarm among many human rights groups, including Human Rights Watch and the Center for Democracy and Technology.

US condemns Egyptian crackdown on social networks

President Barack Obama expressed disapproval on Jan 27 of Egypt's crackdown on the Internet as police battled protestors in the streets of Cairo and other Egyptian cities. During an interview with Steve Grove, the head of news and politics at YouTube, President Obama cited a need for mechanisms that "allow [people] to express legitimate grievances." "There are certain core values that we believe as Americans are universal: freedom of speech, freedom of expression, people being able to use social networking and other mechanisms to communicate their concerns; and that is no less true in the Arab world than it is in the United States," he said.

On Jan 28 President Obama called on Egypt to bring back the Internet and access to social media websites such as Facebook and Twitter that have been suspended this week by the government there. "The people of Egypt have rights that are universal," Obama said. "That includes the right to peaceful assembly and association, the right to free speech and the ability to determine their own destiny. These are human rights and the United States will stand up for them everywhere. I also call upon the Egyptian government to reverse the actions that they've taken to interfere with access to the Internet, with cellphone service and to social networks that do so much to connect people in the 21st century."

"We urge the Egyptian authorities to allow peaceful protests and to reverse the unprecedented steps it has taken to cut off communications," said Sec of State Hillary Clinton. Alec Ross, the adviser to Secretary of State Hillary Clinton on innovation issues, tweeted in Arabic to say the government should not obstruct Web access.

Senate Judiciary Chairman Patrick Leahy (D-VT) said Internet access is a vital tool for protecting basic freedoms.

Rep. David Wu (D-OR) urged Western communications companies to defy orders from Egypt's government to shut down their services.