January 2011

Today's Quote 01.07.10

"The way we think about it is even though we have this great 4G mobile network, you still need to have fiber to the premises because we think your home will utilize a Gigabit of bandwidth."
-- Verizon CEO and Chairman Ivan Seidenberg

January 7, 2011 (Verizon Lobbying GOP for Telecom Overhaul)

"The way we think about it is even though we have this great 4G mobile network, you still need to have fiber to the premises because we think your home will utilize a Gigabit of bandwidth."
-- Verizon CEO and Chairman Ivan Seidenberg

BENTON'S COMMUNICATIONS-RELATED HEADLINES for FRIDAY, JANUARY 7, 2011

All eyes are still on Vegas http://bit.ly/fftBkj but the President’s Council of Advisors on Science and Technology http://bit.ly/gdltmx also meets today


INTERNET/BROADBAND
   FCC survey finds faster broadband needed in schools and libraries
   See also: Illinois Schools, Libraries To Get Broadband Boost
   New, Old and Forgotten Frames in the Network Neutrality Debate
   Do Americans Really Not Support FCC Neutrality Rules?
   Broadband payback not just about subscriber revenues
   Skype is Killing it On Long Distance
   Skype, LinkedIn, Twitter and Facebook Are 2011's Disrupters

NEWS FROM THE CONSUMER ELECTRONICS SHOW
   Verizon Lobbying GOP for Telecom Overhaul
   See also:Verizon's Seidenberg: Wireline growth driven by clouds, enterprise, fiber-based services
   Genachowski: Underused Broadcast Spectrum Needs to Be Repurposed
   Smartphones, tablets and speedy networks run the show
   Bye-Bye, PCs and Laptops
   Do People Really Want Apps on Their TVs?
   Secretary Locke Delivers Remarks at CES
   Hollywood Digital Czars Rain On Smart TV Parade
   CEA's Shapiro Lashes Out at Broadcasters
   The case against the Consumer Electronics Show

OWNERSHIP
   Meetings Multiply As FCC Vets Comcast/NBCU Draft
   Utah Public Service Commission Approves CenturyLink-Qwest Merger
   Nebraska Public Service Commission Approves CenturyLink-Qwest Merger
   EU extends deadline for Intel's McAfee deal

JOURNALISM
   Why Can't Fox News Dent Obama’s Approval Rating?
   Review Of Juan Williams' Firing Done; NPR News Exec Resigns
   Macrowikinomics: Journalism in the Age of Collaboration
   AP seeks more complete, contextualized reporting with new DC editor
   Belo Provided 151 Candidates Free Time
   Las Vegas's copyright crapshoot could maim social media
   Economy Hot Topic Online

POLICYMAKERS
   Business Background Defines Chief of Staff
   Walden Plans Aggressive Oversight Of FCC
   California Public Utilities Commission could get pro-consumer majority
   Kevin Martin Joins Board of AirWalk Communications
   What to do and when to tweet: House Republicans get marching orders
   The Obama Approach to Public Protection: The Regulatory Process

DIGITAL CONTENT
   Digital Divide Propels Barnes & Noble Past Rival
   Las Vegas's copyright crapshoot could maim social media
   Could Congress shut down YouTube with Internet-blacklist bill?

WIRELESS
   Consumers Not Quite Clear On What 4G Means

HEALTH
   HHS trend scan will signal potential health IT breakthroughs

RESEARCH
   America COMPETES Act Keeps America's Leadership on Target
   COMPETES Act Codifies First Restructuring of NIST in a Generation

PRIVACY
   If Google 'knows more about you than you do,' how can CSPs do the same without backlash?

STORIES FROM ABROAD
These headlines presented in partnership with:

   Ofcom opens up more frequencies for 3G services
   See also: Mobile chief attacks UK spectrum allocation ruling
   South Korean police say Google collects personal info
   India's TDSAT seeks government response on spectrum policy shift
   EU extends deadline for Intel's McAfee deal

MORE ONLINE
   What Washington Has In Store For Broadcasters in 2011

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INTERNET/BROADBAND

SCHOOLS AND LIBRARIES NEED MORE BANDWIDTH
[SOURCE: Federal Communications Commission, AUTHOR: ]
The Federal Communications Commission released a report on the state of broadband connectivity at schools and libraries receiving funds from the federal E-rate program, which provides support to help connect schools and libraries to the Internet. The report is based on data from a survey conducted in 2010 that examined the success and challenges related to broadband use faced by schools and libraries. This survey will help the Commission make data-driven policy decisions for the E-rate program by providing information on the educational and technological needs of schools and libraries. The survey was commissioned by the FCC and conducted by Harris Interactive, Inc., an independent national marketing research firm. Specifically, the survey found:
Almost All Have At Least Some Broadband: 95% of all E-rate survey respondents have some form of terrestrial broadband connection to at least one facility, while 2% use satellite and 3% use dial-up.
Faster Broadband Speeds Needed: However, nearly 80% of all survey respondents say their broadband connections do not fully meet their current needs.
Slow connection speed is the primary reason current Internet connectivity does not meet the needs for 55% of these respondents.
Cost is a Big Factor: 39% of E-rate survey respondents cite cost of service as a barrier in meeting their Internet needs, and 27% cite cost of installation as a barrier.
E-Book Use to Greatly Increase: 56% of all E-rate survey respondents expect to implement or expand the use of digital textbooks in the next two to three years, and 45% expect to implement or expand the use of handheld devices for educational purposes.
Most Have Speeds Greater Than 3 Mbps: 10% of E-rate survey respondents have broadband speeds of 100 Mbps or greater and most (55%) have broadband speeds greater than 3 Mbps.
More than half of school districts (60%) subscribe to a fiber optic connection.
66% of respondents provide some wireless connectivity for staff, students or library patrons.
E-Mail Essential for Schools: For schools, e-mail is the most-used application (almost all schools, 98%, regularly use or access e-mail), and the most essential (69% consider it the most essential).
Libraries Rely on Online Reference Materials: For libraries, online reference materials are both the most used application (86% of staff and patrons regularly use or access online reference materials) and the most essential (62% consider it the most essential).
benton.org/node/47512 | Federal Communications Commission | read the report | B&C | National Journal
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DO AMERICANS REALLY NOT SUPPORT NET NEUTRALITY?
[SOURCE: MediaPost, AUTHOR: Wendy Davis]
Shortly after the Federal Communications Commission voted to enact neutrality regulations, Rasmussen Reports released poll results supposedly showing that only one in five Americans support such rules. But the poll's wording raises doubt about that conclusion. Consider, researchers posed the following question to 1,000 respondents: Should the Federal Communications Commission regulate the Internet like it does radio and television? Only 21% said yes, while 54% said no and 25% weren't sure. The problem, however, is that the FCC's neutrality regulations aren't comparable to its rules regarding TV or radio licenses. Among the FCC's best known regulations regarding TV and radio are the controversial decency rules, which have resulted in broadcasters facing fines -- or lengthy court battles -- after airing nudity or expletives.
benton.org/node/47531 | MediaPost
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PAYBACK AND COMMUNITY INVESTMENT
[SOURCE: Connected Planet, AUTHOR: Joan Engebretson]
When doing a cost/ benefit analysis on telecom infrastructure investment, it’s important to take into account not only the direct revenues that the infrastructure generates but also the dollars that flow into a community as a result of the investment. Imagine trying to sell a home today that only had party line phone service and think about the impact that would have on the value of the home. Now apply that logic to broadband. With two-thirds of U.S. households accustomed to having broadband connectivity, I'm already hearing that homes in areas with inadequate broadband coverage are becoming more difficult to sell. And that situation is only going to get worse as young people who never knew a world without broadband begin to buy homes. It’s not easy to quantify the indirect benefits that flow from modern telecommunications infrastructure, but now and then someone takes a crack at it. Nokia Siemens Networks, for example, commissioned a study that found that the U.S. could increase its GDP by $100 billion with an increase of 10 additional broadband lines per 100 individuals. Another study, from the Internet Innovation Alliance, found that using broadband could save U.S. households an average of nearly $8,000 a year. And although some broadband benefits are difficult to quantify, most people recognize that modern telecommunications infrastructure can help communities attract and retain business and that broadband applications—such as telemedicine and distance learning--can save money and improve a community’s quality of life. Taking these factors into account, perhaps broadband payback periods aren't as long as they might seem.
benton.org/node/47486 | Connected Planet
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SKYPE KILLING LONG DISTANCE
[SOURCE: GigaOm, AUTHOR: Stacey Higginbotham]
Skype voice traffic is expected to grow by 45 billion minutes in 2010 to more than twice the volume added by all of the world’s phone companies combined, according to research from consulting firm Telegeography. In 2009, Skype’s growth exceeded long distance voice-minute growth for the first time, as adoption of the company’s P2P VoIP technology took off. Today’s data shows that Skype’s momentum is continuing to grow, which means the small portion of revenue that traditional phone companies bring in for long distance could soon be a relic, like wireline revenue and per-minute domestic calling charges. According to the Telegeography report, international call traffic grew an estimated 4 percent in 2010, to 413 billion minutes — down from 5 percent growth in 2009, and way off from the 15-percent average growth rate shown during the previous two decades. Meanwhile, Skype has hit 102.5 billion minutes, which means one out of five voice minutes are now going to Skype! Telegeography Analyst Stephan Beckert put it best saying, “Demand for international communications remains strong, but ever more people are discovering that they can communicate without the services of a telco.” Beckert noted in an email to me, however, that the telcos aren't losing out on huge chunks of change.
benton.org/node/47509 | GigaOm
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2011'S DISRUPTERS
[SOURCE: GigaOm, AUTHOR: David Carr]
Who will set 2011's standards in NewNet technologies like social media and real-time feeds? In terms of growing user adoption, revenues and technology innovation and influence, a few types of companies come to mind. First, there are the obvious leaders: Facebook and Twitter. These NewNet behemoths — though it’s hard to call such relatively young companies that — remain two of 2010’s highest-impact players and can't be excluded from any forward-looking discussion of the social media space for 2011.
benton.org/node/47533 | GigaOm
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NEWS FROM LAS VEGAS

VERIZON LOBBYING FOR TELECOM OVERHAUL
[SOURCE: National Journal, AUTHOR: David Hatch]
Verizon is urging the new Congress not to abandon earlier Democratic plans to update the 1996 Telecommunications Act, a law widely viewed as outdated for today's broadband-driven universe. "We're encouraging Republicans on the House side to look at overhauling the Communications Act," Verizon's top lobbyist Tom Tauke said at the Consumer Electronics Show. "There's a whole array of issues that arise . . . because of the changes in technology," he said yet "there is no policy in place for the Internet broadband infrastructure." He wants a rewrite to tackle a range of topics, from regulation of Web-based "smart grids" designed to reduce power consumption to privacy protections for digital data stored in the "cloud" of the Internet. He also sees a need for Congress to weigh in on bread and butter telecom matters, including the ongoing debate over restructuring the $7. 3 billion universal service phone subsidy fund for the broadband era. Furthermore, he said lawmakers should strengthen intellectual property protections for high-tech companies and provide more guidance on Internet tax issues. "We have problems that need to be addressed," and need direction on concerns that are "going to be out there," Tauke said.
benton.org/node/47544 | National Journal
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GENACHOWSKI'S CES SPEECH
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
Federal Communications Commission will speak at the Consumer Electronics Show in Las Vegas on Jan 7. He plans to say that broadcasters who are not making "effective use of the capabilities of their spectrum" should have it put to a "higher use for other purposes." According to prepared remarks, he will not say what does or does not constitute effective use, though FCC Commissioner Michael Copps has suggested broadcasters have not been making full or best use of their digital subchannels. But the chairman will make it clear that the higher and better use he is talking about was giving it up for mobile wireless broadband. "While American ingenuity and our appetite for wireless technology is limitless," he'll say, "Spectrum is not. And the coming spectrum crunch threatens American leadership in mobile and the benefits it can deliver to our economy and our lives." Part of the speech is devoted to a pitch for legislation authorizing incentive auctions, through which the FCC would encourage broadcasters and others to give up spectrum in exchange for a cut of the proceeds from the ensuing auction.
benton.org/node/47562 | Broadcasting&Cable | National Journal
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MOBILE DEVICES RUN THE SHOW
[SOURCE: Washington Post, AUTHOR: Cecilia Kang]
Tablets and smartphones took the spotlight at the Consumer Electronics Show, with Motorola, Samsung and LG showering attendees with dozens of faster and more powerful devices that will reach consumer hands this year. And to make those gadgets run high-definition streaming videos and online games, mobile service carriers showcased their new high-speed Internet networks. Verizon Communications Chief Executive Ivan Seidenberg is optimistic about the future of technology growth. With over 2 billion Internet users worldwide, this is the biggest technology market the world has ever known," he said. Nine in 10 people have cellphones in the United States and the consumption of Internet data on wireless networks is more than doubling every year, he said. That growth shouldn't be deterred by government rules, carriers said. Last month, the Federal Communications Commission passed network neutrality rules that prohibit Internet providers from blocking or favoring traffic from particular Web sites into customers' homes. But the agency spared wireless networks from most of the rules, and telecom executives said Thursday that the government was wise to stay out of the burgeoning market for mobile Internet. "Four years ago, there was no apps market, and innovation is well underway at CES," James Cicconi, AT&T's executive vice president for external affairs, said in a panel discussion. "Job number one for policy is not to mess it up." Neil Fried, a house staffer for the Commerce Committee, said during the Net neutrality panel discussion that the first priority for his committee, which was turned over to Republicans this week, is to overturn the FCC's rules. Verizon Communications Executive Vice President Tom Tauke said that his firm doesn't support the agency's Internet regulations and is studying what it might do in response to the rules. Industry experts are watching whether Verizon or another carrier challenges the FCC decision in courts. Clouding future prospects of mobile industry growth, however, is whether government regulators will convince broadcasters to give up spectrum to be used for expanding wireless broadband networks, said Gary Shapiro, president of the trade group Consumer Electronics Association.
benton.org/node/47561 | Washington Post | FT - tablets | BroadbandBreakfast.com - network neutrality | Washington Post - net neutrality
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BYE-BYE, PCs AND LAPTOPS
[SOURCE: Wall Street Journal, AUTHOR: Mike Malone, Tom Hayes]
As inflection points go, the Consumer Electronics Show that kicked off yesterday couldn't be sending a clearer signal: The era of the personal computer is drawing to a close. For an industry gathering that once showcased each new generation of desktop and laptop, this year's show is buzzing with every imaginable flavor of tablet, smart phone and mobile appliance. Welcome to the age of mobile computing. While personal computers are not going to disappear altogether, the trend lines are clear. Gartner, the market research company, predicts that by 2013 the number of smart phones will surpass PCs, 1.82 billion to 1.78 billion. And that's not counting the tablets. Gene Munster, an analyst with the global investment bank Piper Jaffray, estimates that Apple iPad sales were 14.5 million for 2010, with another million tablets sold by competitors. Sarah Rotman Epps at Forrester Research predicts that 82 million Americans will be using tablets by 2015. Access to the Internet -- a key indicator of consumer behavior -- by mobile devices also is on a strong uptick. According to a report by the Pew Research Center's Internet and American Life Project, 59% of Americans accessed the Internet on their phones last year, up from 25% the previous year. The Chinese government recently reported that nearly 300 million Chinese residents now access the Internet via mobile phones. Comcast announced on Wednesday that it would deliver cable television to the iPad and similar Android tablets later this year. Why have smart phones and tablets succeeded when so many past challengers to the PC have failed? Computing power; Cannibalization; Competition; Creatives; Community; The Cloud; Clients; and Culture.
benton.org/node/47558 | Wall Street Journal
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HOLLYWOOD RAINS ON SMART TV PARADE
[SOURCE: paidContent.org, AUTHOR: Andrew Wallenstein]
Television manufacturers, take note: All those new sets you've crammed with apps and other Internet-derived content experiences aren't impressing some pretty key constituents in the entertainment industry. A panel discussion at CES drew some sharply critical assessments of the so-called smart TVs. "They’re clearly not ready for primetime,” said Curt Marvis, president of digital media at Lionsgate, who went on to describe the poor functionality of one particular device whose manufacturer he did not identify. “Other than Netflix and Qriocity (Sony), there was nothing on there that worked very well at all. It reminded me of the old CD-ROM days.” Marvis later added, “People are loading up these BD players and sets with all these apps but I haven't seen many that are that compelling today.”
benton.org/node/47526 | paidContent.org
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CEA LASHES OUT AT BROADCASTERS
[SOURCE: National Journal, AUTHOR: David Hatch]
The battle over America's spectrum resources ratcheted up a notch when Consumer Electronics Association President and CEO Gary Shapiro accused television broadcasters of "squatting now on our broadband future." Delivering a keynote speech, Shapiro suggested that TV stations should relinquish more of their digital airwaves to meet growing demand for wireless connectivity and head off a possible shortage of megahertz for broadband. Broadcasters have agreed to voluntary give-backs of their frequencies, an approach the FCC endorsed after initially considering forced reallocation of spectrum, but Shapiro implied that those commitments as lacking. Proponents of shifting TV spectrum to wireless carriers argue that broadcasting is an antiquated and inefficient technology and that stations often do not use all of their frequencies. "Perhaps while he was writing his book, Gary missed the fact that broadcasters just gave back over a quarter of our airwaves after the DTV transition," responded National Association of Broadcasters spokesman Dennis Wharton, taking a swipe at Shapiro's new book about innovation, The Comeback.
benton.org/node/47501 | National Journal
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THE CASE AGAINST CES
[SOURCE: Slate, AUTHOR: Farhad Manjoo]
A critique of the overcrowded, overstuffed, chaotic, and profoundly pointless vaporware parade known as Consumer Electronics Show. Every major tech company follows the same tired CES script: They put on by-the-book press conferences that begin with lots of demos of stuff we already know about—count on Intel, for instance, to always show you how fast its new chips are (hint: faster than last year's chips). Next, with all the fanfare of the Second Coming, tech giants offer a few incremental improvements to old products. Finally, they show off things like the HP Slate -- gadgets in very early stages of development that have been rushed to the show and barely work as prototypes, with little chance of actually getting to market anytime soon. The fact that CES is an enormous waste of time isn't news to tech journalists. In private, gadget reporters will tell you that covering the show is a tremendous hassle and rarely yields any interesting news. But because CES demos make for great headlines and visuals -- hey look, Steve Ballmer unveiled a tablet PC even before Apple did!—and because of the sheer volume of new stuff to post about, CES is a boon for gadget blog traffic and a honeypot for advertisers.
benton.org/node/47524 | Slate
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OWNERSHIP

FLURRY OF MEETINGS OVER COMCAST-NBCU
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
A flurry of ex parte filings at the Federal Communications Commission in the Comcast/NBCU proceeding were posted January 6 as commissioners and their staff vetted the FCC's draft approval of the deal and interested parties made their cases. A commission source says there is no new draft since the initial one was circulated just before Christmas. For example, Comcast and NBCU execs met with top staffers to Democratic Commissioner Mignon Clyburn on Jan. 4 to talk up its commitment to adding 10 new minority-controlled independent nets, and apparently to defend the eight-year timeline for doing so. According to its filing, Comcast execs including Comcast EVP David Cohen and NBCU General Counsel Rick Cotton explained "that the timeline for adding those independent networks is reasonable given how long it typically takes to identify, contract with, and launch a new network." American Cable Association President Matt Polka lead a delegation that told the FCC that a baseball-style arbitration for carriage negotiation impasses--one of the FCC's proposed conditions on the deal, according to the draft--would provide no relief for small cable operators. Between them, Dish and DirecTV execs met with staffers from the offices of Clyburn, Copps and Republican Commissioner Robert McDowell, in at least Dish's case to push for applying program access, arbitration and standstill provisions that apply to traditional and online content alike. Bloomberg, a big critic of the deal, also met with Copps' staffers to push for a neighborhooding requirement--some variation is said to already be in the draft -- that would require Comcast to place a business news competitor like Bloomberg's TV channel adjacent to other business news channels like NBCU's CNBC.
benton.org/node/47502 | Broadcasting&Cable
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EU REVIEW OF INTEL-MCAFEE
[SOURCE: Associated Press, AUTHOR: ]
Intel Corp. and security specialist McAfee Inc. have given commitments to help get European Union approval for the U.S. chipmaker's $7.68 billion takeover, European regulators said. The European Commission, the EU's antitrust watchdog, said that it has extended its deadline for reviewing the deal until Jan. 26 from Jan. 12.
benton.org/node/47541 | Associated Press
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JOURNALISM

WHY CAN'T FOX BRING OBAMA DOWN?
[SOURCE: Media Matters for America, AUTHOR: Eric Boehlert]
[Commentary] The new year got off to a dark, dismal start for Fox News staffers when on Jan 3, Gallup posted its latest polling results regarding President Obama’s job rating: He hit it the 50 percent approval mark, having climbed nine points from a low in late October. It was the first time President Barack Obama had reached the symbolic half-century mark since late May 2010, and I'm guessing folks at Fox News were not happy. And there was more bad news for Fox this week. Another poll, this one from Opinion Research, found that nearly two-thirds of Americans hope President Obama succeeds this year, while 73 percent “approve” of President Obama as a person. So why the sad faces at Fox News? Because it’s the job of Rupert Murdoch’s cable channel to make sure President Obama fails. Fox News, along with the larger, unreliable GOP Noise Machine, remains dedicated to undermining and destroying Obama’s presidency. Not to hold President Obama accountable or challenge his polices, but to destroy his presidency. Fox News’ entire corporate mission is to be an anchor around Obama’s neck and to drive his approval numbers into the 30s. And right now, Fox News is losing. Why the futility? It’s probably because outside the walls of the right-wing media echo chamber, news consumers are becoming numb to the relentless attacks and hysterical claims made about President Obama.
benton.org/node/47504 | Media Matters for America
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REVIEW OF WILLIAMS FIRING
[SOURCE: National Public Radio, AUTHOR: Mark Memmott]
NPR just released two statements — one on the completion of an independent review of the dismissal of news analyst Juan Williams and another on the resignation of Senior Vice President for News Ellen Weiss. On the firing, the review concluded that Williams' contract was terminated in accordance with its terms. The contract gave both parties the right to terminate on 30 days’ notice for any reason. The facts gathered during the review revealed that the termination was not the result of special interest group or donor pressure. However, because of concerns regarding the speed and handling of the termination process, the Board additionally recommended that certain actions be taken with regard to management involved in Williams’ contract termination. Weiss was the NPR executive who informed Williams of his dismissal, which came after he said on Fox News Channel that he gets nervous when he sees people in "Muslim garb" on airplanes. NPR said the remark was the latest in a pattern of problem comments made by Williams over recent years. The NPB Board adopted recommendations that NPR:
Establish a committee comprised of NPR personnel, respected journalists, and others from outside NPR to review and update NPR’s current Ethics Code (the “Code”).
Develop policies and procedures to ensure consistent application of and training on the Code to all employees and contractors.
Review and update policies/training with respect to the role of NPR journalists appearing on other media outlets to ensure that they understand the applicability of the Ethics Code to their work and to facilitate equitable and consistent application of the Code.
Review and define the roles of NPR journalists (including news analysts) to address a changing news environment in which such individuals have a myriad of outlets and new platforms for their talent, balancing the opportunities presented by such outlets and platforms with the potential for conflicts of interest that may compromise NPR’s mission.
Ensure that its practices encourage a broad range of viewpoints to assist its decision-making, support its mission, and reflect the diversity of its national audiences. The Human Resources Committee of the Board is working in conjunction with key members of NPR management on this issue.
benton.org/node/47491 | National Public Radio
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POLICYMAKERS

DALEY TAPPED AS WHITE HOUSE CHIEF OF STAFF
[SOURCE: New York Times, AUTHOR: Eric Lipton]
He is a top executive at JPMorgan Chase, where he is paid as much as $5 million a year and supervises the Washington lobbying efforts of the nation’s second-largest bank. He also serves on the board of directors at Boeing, the giant military contractor, and Abbott Laboratories, the global drug company, which has billions of dollars at stake in the overhaul of the health care system. Daley is a former telecom-industry executive who served as president of SBC Communications before it merged with AT&T. And now William M. Daley, the son and brother of Chicago mayors and a behind-the-scenes political player himself, will hold one of the most powerful jobs in Washington: chief of staff in the White House, where he will help decide who gets into the Oval Office and what President Obama’s Capitol Hill agenda should be. Daley’s recruitment to Pennsylvania Avenue from the corporate boardroom is seen as a smart step by some in Washington, who argue that Mr. Obama has long needed a White House confidant who has the ear of the business community and a record of bipartisanship that might help the president negotiate with Republicans in Congress. Critics of Mr. Daley’s appointment said his corporate work would cause problems. They argue that he will have to recuse himself from matters relating to Chase, Abbott and Boeing or bow out of discussions involving financial regulations, health care and major Defense Department acquisitions, like the contract for a giant Air Force refueling tanker for which Boeing is competing.
benton.org/node/47565 | New York Times | WSJ - Peace with Business | WSJ - Politics and Business | WashingtonPost | FT | CSM | USAToday | The Hill
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NEW COMMISSIONERS FOR CPUC
[SOURCE: Los Angeles Times, AUTHOR: Marc Lifsher]
Gov. Jerry Brown (D-CA) could have a big impact on business and residential energy bills and the California economy by making as many as three appointments this month to the state's top regulatory body, the Public Utilities Commission. At least two appointments to fill current vacancies in the five-member panel could come as early as Friday and could start to give the PUC its most pro-consumer majority since the days of the energy crisis a decade ago. A third member, Nancy Ryan, must step down Jan. 20 if her appointment last year by then- Gov. Arnold Schwarzenegger to a regular six-year term is not confirmed by the state Senate by then. Schwarzenegger's commissioners largely deregulated the telephone business. All of the half-dozen candidates known to be interested in joining the commission have strong pro-consumer credentials. One, consumer lawyer Michael Florio, has spent the last 32 years representing utility ratepayers at meetings at the PUC's San Francisco headquarters. Catherine Sandoval, a Santa Clara University law professor and telecommunications expert, is also a possible nominee.
benton.org/node/47543 | Los Angeles Times
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GOP COMMUNICATIONS ORDERS
[SOURCE: National Journal, AUTHOR: Beth Reinhard]
In the e-mail from the House Republican Conference, when and what to send out by press release or post to Twitter, Facebook, YouTube, and congressional websites is spelled out in great detail, day by day, Wednesday through Friday. There is a "member checklist" to measure progress at week's end. The e-mail reflects a powerful and superior messaging operation that helped the GOP seize control of the House in 2010.
benton.org/node/47534 | National Journal
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OBAMA AND THE REGULATORY PROCESS
[SOURCE: OMB Watch, AUTHOR: ]
OMB Watch released the third and final report in a series on public protections and the Obama administration. The new report finds that although the Obama administration's overall regulatory philosophy is strikingly different from that of the previous administration, promised changes to the federal regulatory process have stalled out. The administration's progress is due in large part to the appointment of qualified and dedicated individuals to lead regulatory agencies and an early commitment to restoring budgets that had suffered years of cuts, the report finds. The report also notes that the administration has made progress on government openness and scientific integrity policies that should prove beneficial to regulatory transparency and the key role that science should play in crafting public protections. However, Rick Melberth, Director of Regulatory Policy at OMB Watch, noted, "The transformative change to the regulatory process promised at the beginning of the Obama administration has not yet become a reality."
benton.org/node/47497 | OMB Watch | read the report
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DIGITAL CONTENT

BARNES AND NOBLE VS BORDERS
[SOURCE: National Public Radio, AUTHOR: Lynn Neary]
The digital divide has created a chasm between the nation's two biggest bookstore chains: While Borders is trying to hold off bankruptcy, Barnes & Noble announced Thursday its best holiday sales season in more than a decade. "Thrilled" was the word Barnes & Noble Chief Financial Officer Joseph Lombardi used to describe the mood at his company. Holiday sales at BarnesAndNoble.com were up 78 percent over last year; store sales increased by almost 10 percent. While sales of hardcover books were better than expected, Lombardi made it clear that Barnes & Noble's popular e-readers, the Nook and the Nook Color, were behind the good news. James McQuivey, an analyst at Forrester Research, says the Nook is a popular reading device, but selling it at the chain's stores gives Barnes & Noble an added advantage. "People buy the Nook at retail and then they go and buy digital books, but because they're in the retail location, they might pick something else up while they're there," he says. "So the good residual feeling that Barnes & Noble has after [the fourth quarter of] last year, it's all because of the foot traffic that the Nook drove. That's their salvation right now." While Barnes & Noble was developing the Nook, Borders was already having financial problems, leaving it ill-prepared to make the investments needed to meet the challenges of the digital age.
benton.org/node/47523 | National Public Radio
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WIRELESS

CONSUMERS UNCLEAR ON 4G
[SOURCE: GigaOm, AUTHOR: Ryan Kim]
With 4G now a battle cry taken up by all the major US wireless carriers, it’s not surprising that consumers are generally aware of the term. But understanding what it means is another thing altogether, according to a Nielsen Company survey, which discovered only two out of five people understand what they’re talking about when it comes to 4G. The survey of 2,100 people found that 83 percent of respondents are aware of the term 4G, but of that group, 49 percent said they don't understand what it means. But when you ask people who think they know what 4G means, you still get some confusion. While most get the idea that it generally means faster speeds, 27 percent said they thought 4G meant the iPhone 4 and 13 percent said they thought it referred to an Android device on T-Mobile. The fact is 4G has been a marketing buzz word that has been bandied about increasingly with little regard to what 4G was originally designed to be. Though it was originally meant to designate speeds of 100 megabits per second down and other requirements, the International Telecommunications Union last month relaxed its definition to include any substantial improvement in performance over 3G, allowing LTE, WiMAX and HSPA+ to all claim 4G status.
benton.org/node/47507 | GigaOm
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HEALTH

HHS TRACKING HEALTH IT BREAKTHROUGHS
[SOURCE: GovernemntHealthIT, AUTHOR: Mary Mosquera]
The Health and Human Services Department plans to develop and maintain a continuous scan of current and emerging health information technology innovations to help HHS agencies understand and be aware of potential breakthroughs in healthcare delivery. The Office of the National Coordinator for Health IT will collect information about technology trends along with subject-matter experts and health IT innovators and developers, according to a Dec.30 announcement in Federal Business Opportunities. HHS will use a vendor to support the innovation scanning effort. ONC will update the Centers for Medicare and Medicaid Services and the Agency for Healthcare Research and Quality on the development of the most promising health IT innovations that may support the achievement of meaningful use and the adoption of health IT, as well as other program efforts that will be affected by technological advances. This exchange will offer the systematic identification of health IT innovations that tackle critical problems in areas of care delivery as well as the early identification of emerging, breakthrough advances that may shape policy and technology initiatives, the announcement said.
benton.org/node/47506 | GovernemntHealthIT | read the announcement
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RESEARCH

NIST REORGANIZATION
[SOURCE: GovInfoSecurity.com, AUTHOR: Eric Chabrow]
President Obama signed this week the America Competes Reauthorization Act of 2010, legislation that provides for the first major reorganization of the National Institute of Standards and Technology in a generation. The new law also directs NIST to collaborate with industry to develop cloud computing standards, formalizing NIST's cloud computing activities begun in the past two years. Another provision of the act gives the NIST director a promotion, to undersecretary of commerce for standards and technology. NIST is part of the Department of Commerce. The reorganization reduces to six from 10 the number of laboratories, the main research and development components at NIST. It essentially keeps intact the Information Technology Laboratory, the NIST unit that provides IT and cybersecurity guidance to federal agencies. The restructuring of the other labs is patterned after the interdisciplinary way the IT Lab functions.
benton.org/node/47482 | GovInfoSecurity.com
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STORIES FROM ABROAD
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OFCOM OPENS UP MORE FREQUENCIES FOR 3G SERVICES
[SOURCE: Ofcom, AUTHOR: Press release]
Ofcom has introduced a new measure that will help mobile phone operators to increase mobile broadband speeds, deliver improved in-building coverage and widen mobile broadband coverage in rural areas. The airwaves used by mobile phone operators for 2G services, such as making phone calls and sending texts, will be available to provide 3G services, such as mobile Internet browsing. Mobile phone operators could previously only use a limited amount of spectrum – the airwaves that mobile phones and other wireless devices use to communicate – to deliver 3G. The remainder of their spectrum holdings was licensed in the 1990s with a condition that it could only be used for 2G services – mainly voice calls and text messages. This spectrum could in future be used to meet the growing demand from smartphone devices and the like for 3G services.
benton.org/node/47521 | Ofcom
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Business Background Defines Chief of Staff

He is a top executive at JPMorgan Chase, where he is paid as much as $5 million a year and supervises the Washington lobbying efforts of the nation’s second-largest bank. He also serves on the board of directors at Boeing, the giant military contractor, and Abbott Laboratories, the global drug company, which has billions of dollars at stake in the overhaul of the health care system. Daley is a former telecom-industry executive who served as president of SBC Communications before it merged with AT&T.

And now William M. Daley, the son and brother of Chicago mayors and a behind-the-scenes political player himself, will hold one of the most powerful jobs in Washington: chief of staff in the White House, where he will help decide who gets into the Oval Office and what President Obama’s Capitol Hill agenda should be. Daley’s recruitment to Pennsylvania Avenue from the corporate boardroom is seen as a smart step by some in Washington, who argue that Mr. Obama has long needed a White House confidant who has the ear of the business community and a record of bipartisanship that might help the president negotiate with Republicans in Congress.

Critics of Mr. Daley’s appointment said his corporate work would cause problems. They argue that he will have to recuse himself from matters relating to Chase, Abbott and Boeing or bow out of discussions involving financial regulations, health care and major Defense Department acquisitions, like the contract for a giant Air Force refueling tanker for which Boeing is competing.

Secretary Locke Delivers Remarks at CES to Highlight Administration’s Efforts to Promote Innovation, US Exports

Commerce Secretary Gary Locke visited the Consumer Electronics Show (CES) , where he delivered remarks on the Obama administration’s efforts to foster innovation and the President’s National Export Initiative (NEI), which seeks to double U.S. exports by 2015, supporting several million American jobs.

Sec Locke said the U.S. has fallen behind the rest of the world on technology and innovation and said the Obama administration has spent the past two years working to reverse the country's slide. Sec Locke also discussed Commerce’s International Buyer Program (IBP), a key component of the Department’s export promotion effort. The IBP matches international buyers with U.S. companies that want to export. The Program recruited 34 delegations, consisting of 700 delegates from key markets such as China, Brazil, Vietnam, and Indonesia, to this year’s show – an increase of over 30 percent from the 2010 show. During the CES, Locke also visited the booths of some small- and medium-sized businesses that have increased their sales to foreign markets with the help of the Commerce Department.

Genachowski: Underused Broadcast Spectrum Needs to Be Repurposed

Federal Communications Commission will speak at the Consumer Electronics Show in Las Vegas on Jan 7. He plans to say that broadcasters who are not making "effective use of the capabilities of their spectrum" should have it put to a "higher use for other purposes."

According to prepared remarks, he will not say what does or does not constitute effective use, though FCC Commissioner Michael Copps has suggested broadcasters have not been making full or best use of their digital subchannels. But the chairman will make it clear that the higher and better use he is talking about was giving it up for mobile wireless broadband. "While American ingenuity and our appetite for wireless technology is limitless," he'll say, "Spectrum is not. And the coming spectrum crunch threatens American leadership in mobile and the benefits it can deliver to our economy and our lives." Part of the speech is devoted to a pitch for legislation authorizing incentive auctions, through which the FCC would encourage broadcasters and others to give up spectrum in exchange for a cut of the proceeds from the ensuing auction.

Smartphones, tablets and speedy networks run the show

Tablets and smartphones took the spotlight at the Consumer Electronics Show, with Motorola, Samsung and LG showering attendees with dozens of faster and more powerful devices that will reach consumer hands this year. And to make those gadgets run high-definition streaming videos and online games, mobile service carriers showcased their new high-speed Internet networks.

Verizon Communications Chief Executive Ivan Seidenberg is optimistic about the future of technology growth. With over 2 billion Internet users worldwide, this is the biggest technology market the world has ever known," he said. Nine in 10 people have cellphones in the United States and the consumption of Internet data on wireless networks is more than doubling every year, he said. That growth shouldn't be deterred by government rules, carriers said.

Last month, the Federal Communications Commission passed network neutrality rules that prohibit Internet providers from blocking or favoring traffic from particular Web sites into customers' homes. But the agency spared wireless networks from most of the rules, and telecom executives said Thursday that the government was wise to stay out of the burgeoning market for mobile Internet. "Four years ago, there was no apps market, and innovation is well underway at CES," James Cicconi, AT&T's executive vice president for external affairs, said in a panel discussion. "Job number one for policy is not to mess it up."

Neil Fried, a house staffer for the Commerce Committee, said during the Net neutrality panel discussion that the first priority for his committee, which was turned over to Republicans this week, is to overturn the FCC's rules.

Verizon Communications Executive Vice President Tom Tauke said that his firm doesn't support the agency's Internet regulations and is studying what it might do in response to the rules. Industry experts are watching whether Verizon or another carrier challenges the FCC decision in courts. Clouding future prospects of mobile industry growth, however, is whether government regulators will convince broadcasters to give up spectrum to be used for expanding wireless broadband networks, said Gary Shapiro, president of the trade group Consumer Electronics Association.

Bye-Bye, PCs and Laptops

As inflection points go, the Consumer Electronics Show that kicked off yesterday couldn't be sending a clearer signal: The era of the personal computer is drawing to a close.

For an industry gathering that once showcased each new generation of desktop and laptop, this year's show is buzzing with every imaginable flavor of tablet, smart phone and mobile appliance. Welcome to the age of mobile computing. While personal computers are not going to disappear altogether, the trend lines are clear. Gartner, the market research company, predicts that by 2013 the number of smart phones will surpass PCs, 1.82 billion to 1.78 billion. And that's not counting the tablets. Gene Munster, an analyst with the global investment bank Piper Jaffray, estimates that Apple iPad sales were 14.5 million for 2010, with another million tablets sold by competitors. Sarah Rotman Epps at Forrester Research predicts that 82 million Americans will be using tablets by 2015. Access to the Internet -- a key indicator of consumer behavior -- by mobile devices also is on a strong uptick. According to a report by the Pew Research Center's Internet and American Life Project, 59% of Americans accessed the Internet on their phones last year, up from 25% the previous year. The Chinese government recently reported that nearly 300 million Chinese residents now access the Internet via mobile phones. Comcast announced on Wednesday that it would deliver cable television to the iPad and similar Android tablets later this year.

Why have smart phones and tablets succeeded when so many past challengers to the PC have failed? Computing power; Cannibalization; Competition; Creatives; Community; The Cloud; Clients; and Culture.

Do People Really Want Apps on Their TVs?

Do people really want their TVs to act like already app-ified computers or mobile phones?

There's wide agreement that consumers want their TV guide interface to look more PC-like, resembling a portal that highlights content, rather than simply a grid. But Richard Bullwinkle, chief evangelist at Rovi, which makes TV guide software and other services for TV distributors and device makers, questioned whether consumers want apps on their TVs. At the end of the day, he said, people really just want to watch more relevant shows more easily. “Apps tend to compartmentalize content,” inhibiting discovery, he said. Jim Denney, vice president of product marketing for TiVo, defended apps, saying they can enhance the discovery of shows. He cited an app that enables TiVo users to look up additional online information about shows they have recorded, as an example. One thing everyone agreed on was that it is going to take much longer for app-enabled televisions to reach mass adoption than industry insiders expect, with several executives noting that the number of consumers who actually activate the Internet functionality on TVs that have it is very small.

Could Congress shut down YouTube with Internet-blacklist bill?

[Commentary] A woman in China was sentenced last November to a year in prison for a satirical comment she made on Twitter, a social website the Chinese government had banned. That same week, despite America’s open criticism of government censorship in China and Iran, the United States Senate Judiciary Committee unanimously approved an Internet censorship bill of its own: the Combating Online Infringement and Counterfeits Act (COICA). Sen. Ron Wyden (D-OR) effectively blocked the bill from passing the full Senate, but it could re-emerge this year.

Thankfully, an especially aggressive provision of the legislation that would have authorized the Department of Justice to create a formal list of offending sites was stripped this past fall. But the amended bill still contains features that would enable a de facto public “blacklist.” If it becomes law, COICA would not only be counterproductive to innovation and progress, but also diminish a constitutional right to free speech. Under this bill, entire websites could face serious repercussions if a court deemed copyright infringement “central to the activity of the website.” Perhaps the US Senate needs a dose of old wives' wisdom: Don't throw the baby out with the bathwater. Continue to police for copyright infringement, but don't interfere with Internet innovation and technological growth.

Mobile chief attacks UK spectrum allocation ruling

The head of 3, the UK’s smallest mobile network operator, has signalled that his business could be sold after accusing ministers and regulators of distorting competition in the telecoms industry.

Kevin Russell, chief executive of 3 UK, criticized a decision by regulators to let the operator’s larger rivals reallocate some of their radio spectrum from basic phone services to data activities such as Internet browsing. The Hutchison Whampoa-owned operator is seeking assurances that it will have a fair chance of securing a significant chunk of low-frequency spectrum in an auction due next year. It wants Ofcom, the telecoms watchdog, to draw up auction rules that cap the amount of spectrum that any operator can hold. Without a cap, 3 fears that O2 and Vodafone could end up holding the bulk of the spectrum available at a bandwidth below one gigahertz. Everything Everywhere, the largest network operator, has similar concerns to 3.