January 2011

Consumers Not Quite Clear On What 4G Means

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.

HHS trend scan will signal potential health IT breakthroughs

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.

Why Can't Fox News Dent Obama’s Approval Rating?

[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.

Meetings Multiply As FCC Vets Comcast/NBCU Draft

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.

CEA's Shapiro Lashes Out at Broadcasters

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.

Macrowikinomics: Journalism in the Age of Collaboration

[Commentary] The new media is threatening journalism. The continuing collapse of many newspapers in North America -- 70 in the past decade -- is a storm warning of more to come. Magazines are in trouble, too, and your favorite has probably never had such a dearth of advertising. It turns out people will not pay for news as a commodity. In an age of Twitter, bloggers, WikiLeaks and social networks, people can find the news without buying a paper. As one youngster said, "If the news is important it will find me."

The Internet has destroyed the business model for print. Print publications will survive, but not in the long term, and this has big implications for journalism. Compared to the massive physical assets of, say, The New York Times, online newspaper The Huffington Post has almost zero printing and distribution costs. The New York Times employs more than a thousand people in its editorial department alone. The Huffington Post employs 97 and a volunteer roster of thousands of writers. The site is thriving, with 20 million readers. But how will we defend core journalistic values like objectivity, quality and truth? How will journalists make a living? What will happen to quality in this democratized world when the traditional filters for accuracy, balance and journalistic standards are gone? Will investigative journalists who are losing their jobs be replaced in society by public-relations flacks? With no one seemingly accountable for the truth, who can we trust? Journalism will surely survive, just not in its present form. People will not pay for commodities, whether it's news or other content. But they will pay for compelling, differentiated value, as The Economist, Thomson Reuters, and In-Style Magazine show. The key will be to develop new business models, offer distinctive value and not get too hung up on trying to defend a legacy business being killed by the digital age.

The Obama Approach to Public Protection: The Regulatory Process

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."

What Washington Has In Store For Broadcasters in 2011

This year, like many in the recent past, Washington will consider issues that could fundamentally affect the broadcast industry -- for both radio and TV, and affecting the growing online presence of broadcasters.

The Federal Communications Commission, Congress, and other government agencies are never afraid to provide their views on what the industry should be doing but, unlike other members of the audience, they can force broadcasters to pay attention to their views by way of new laws and regulations. And there is never a shortage of ideas from Washington as to how broadcasters should act. Some of the issues are perennials, coming back over and over again (often without resolution), while others are unique to this coming year. Issues unique to radio and TV, and those that could affect the broadcast industry generally: spectrum reclamation, white spaces, low power TV's digital transition, retransmission consent reform, performance royalties, ownership rules, localism and the future of media, equal employment opportunity rules, and political advertising rules.

New, Old and Forgotten Frames in the Network Neutrality Debate

One key reason for confusion about Network Neutrality lies in the many different and inconsistent frames used to shape the debate.

The Tea Party has entered the fray by characterizing the matter primarily in terms of freedom. Republicans decry the “job killing” impact of the FCC’s rules. Network Neutrality advocates appear ambivalent whether the FCC has capitulated to special interests, or shaped a pragmatic compromise. Older frames typically use hyperbole to justify government intervention or forbearance. Network Neutrality advocates frame the matter as impacting the Internet’s openness and its ability to incubate new ventures such as Google, Netflix, Amazon and EBay. Opponents reject the need for government safeguards based on the view that there is no problem requiring a solution. Everyone seems to have ignored a more basic question whether or not the Internet access market currently operates competitively. If the market is sufficiently competitive one can vote with their dollars and change carriers if and when the carrier operates in ways subscribers do not like. Of course there are transaction costs in making such a move, and in the wireless market carriers offer subsidized handsets to lock in subscribers for two years. As well the matter of identifying the cause of network congestion, sluggish service or discriminatory practices presents a forensic problem. In light of the interconnected and integrated nature of the Internet, where content and conduit converge, an end user cannot readily determine if degradation in service -- however defined -- is caused by the content or application provider, a long haul carrier, or the ISP providing first and last mile access to the Internet cloud.

Las Vegas's copyright crapshoot could maim social media

Every year billions in wagers are laid down in the gambling halls of Las Vegas. Last spring, however, one local company, Righthaven LLC, started a new game by betting on the unlikeliest of entities in the local courts — print media. By aggressively suing alleged copyright infringers, Righthaven has taken the shooter position in an consequential game of craps that is sure to impact the future of online media, if not the entire Internet. Meanwhile, newspapers, bloggers, lawyers, and civil liberty groups have all flocked to the table to place bets of their own — and see if they can change the odds.