February 2011

GOVERNMENT & COMMUNICATIONS

WISCONSIN GOVERNOR BLOCKING INTERNET?
[SOURCE: Center for American Progress, AUTHOR: Mike Elk]
[Commentary] According to pro-labor protesters in Wisconsin, Gov. Scott Walker (R-WI) may be taking a page from former Egyptian Dictator Hosni Mubarak and cutting off internet access to key protest organizers within the state Capitol building. If you are in the Capitol attempting to access the internet from a free WiFi connection labeled “guest,” you cannot access the site defendwisconsin.org. The site has been used to provide updates on what is happening, where you can volunteer, and where supplies and goods are needed to support protesters. Administrators of the website were notified on Monday that the page is being blocked. Wisconsin Democratic Party Chairman Mike Tate says that the site was put on a blacklist typically used to filter out pornography sites so that protestors inside the Capitol could not access this key site. Former Wisconsin Assistant Attorney General Charles Hoornstra said that, if Walker is blocking the website, it could be a violation of state and federal laws concerning free speech laws. The accusation by the Wisconsin Democratic Party accompanies an accusation by the Teaching Assistants Association that Wisconsin state authorities cut off WiFi access to a room they had taken over as a headquarters inside of the Capitol.
benton.org/node/51189 | Center for American Progress
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WIRETAP PRIVACY CONCERNS
[SOURCE: National Public Radio, AUTHOR: Martin Kaste]
In the old days, wiretapping was easy: Law enforcement officials just tapped a wire. Even with cell phones, police merely had to take a warrant to the phone company and tell it to tap the number. But now, in this age of Skype and instant messaging, things are a lot trickier, and law enforcement says it needs help. Federal law already requires tech companies to cooperate with court-ordered surveillance. The problem, says FBI general counsel Valerie Caproni, is that the companies offering services like Web-based e-mail or social networking sometimes can't cooperate. "What we're finding — and it's not universally the case, across the board — but what we're seeing is they do not have intercept solutions available for all of the types of services that they're offering for people to use to communicate," she says. In 1994, Congress passed a law requiring the new cell phone networks to provide "intercept solutions," as Caproni puts it. Now, the Obama administration wants a similar requirement for communications systems on the Internet. The FBI, the Commerce Department and the various spy agencies have been meeting for months to discuss possible legislation, and last week there was a preliminary hearing on the subject in the House of Representatives. "It was a very weird hearing," says computer engineer Susan Landau, who testified. She says it was hard to offer analysis because the administration is being vague: "They just haven't detailed their problems."
benton.org/node/51216 | National Public Radio
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WIRELESS

WIRELESS INNOVATION
[SOURCE: Verizon, AUTHOR: Link Hoewing]
[Commentary] The notion that the US is far behind other countries when it comes to wireless broadband innovation and adoption is wrong and harmful to good thinking regarding Internet policy. First, a presentation made by Morgan Stanley in June of this past year has this headline in one of its slides: “Mobile Internet Tortoise vs. Hare? USA Surpassed Japan as Country with Most 3G Users in CQ1:09 USA Has Become Global Leader in Mobile Users + Innovation.” The data in the presentation suggests that the US has completely overtaken Japan in the number of 3G users by a country mile. Just a few years ago, most felt that Japan would dominate the mobile industry because of the rapid adoption in that country of both mobile phones and online services like banking. Morgan Stanley’s analysis shows the U. S. has pulled ahead in strongly in the number of people in the US using 3G devices. A second Morgan Stanley presentation done in November of last year takes the data a step further, looking globally at 3G markets. Who is ahead? The US once again, ahead not only in terms of total numbers of 3G users but also in many cases in the rate of growth of adoption in the U. S. and in total penetration. A few countries like Japan and Korea - rival or exceed the U. S. in one or both of these metrics. But very few other countries come even close. And in terms of total numbers of Americans using 3G services and devices, the U. S. outpaces many of the countries in Europe and elsewhere commonly cited as “being ahead of the U. S. in wireless”. That includes France, Germany, Sweden and the UK. Why is the US moving so rapidly ahead? Maybe it is because we are very innovative when it comes to wireless applications and services. The US wireless market is the most innovative and competitive on the planet. And as a result, consumers get great value and a host of options and they are voting with their feet in rapidly buying new 3G devices and services. And now the US is poised to lead in the evolution to 4G as Verizon rapidly builds out its LTE network and other players move to deploy technologies beyond 3G. To claim otherwise, as far too many do, is baseless, it is as simple as that.
benton.org/node/51168 | Verizon
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LTE CONSPIRACY
[SOURCE: Connected Planet, AUTHOR: Kevin Fitchard]
[Commentary] The long-term evolution (LTE) club added a few members last week at Mobile World Congress with SK Telecom, Telstra, Telefonica and a handful of smaller operators announcing plans to roll out commercial LTE networks this year and next. At that pace, the “long-term” in LTE is quickly becoming a misnomer—or at least that’s what I've been foolishly led to believe. But according to a many of the European media I spoke with in Barcelona last week, LTE is just as long-term as its name implies and Verizon’s heralded early launch of a large-scale LTE network is a marketing myth. I'm not kidding here. I heard from several European colleagues—and even an American one—in the press and blogger corps that LTE is still at least a year or two away from even seeing daylight in a live network and that what Verizon Wireless has deployed is not a “true” commercial LTE network but a limited trail at best. Further, and contrary to published launch dates, these doubters contend that the first LTE smartphones won't be available until 2012 or 2013.
benton.org/node/51217 | Connected Planet
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LOW INCOME CONSUMERS CAN THINK FOR THEMSELVES
[SOURCE: Minority Media and telecommunications Council, AUTHOR: David Honig]
[Commentary] Do you have a cell phone? How would you like it if the Federal Communications Commission required you to pay an extra $20 a month to get movie downloads, whether you want them not, or to allow your kids to access violent video games or adult content, whether you want them to or not, just so everyone would get what the government considers to be “the full Internet experience?” What if you’re low income, and you'd rather spend that $20 on books? Or warm clothes? Or food? My friend Malkia Cyril of the Center for Media Justice doesn't want low income people to have that choice. She says it’s “un-American to give low-income communities substandard Internet service that creates barriers to economic opportunity and democratic engagement.” So what is this “un-American” consumer offering? One of the wireless carriers is offering three packages, all of VOIP-enabled (so they can get services like Skype) with free access to any lawful website, and all of them clearly labeled:
Plan A: $40, with no multimedia streaming (that is, no movie downloads such as Netflix, porn, etc.)
Plan B: $50, with metered multimedia streaming.
Plan C: $60, with unlimited multimedia streaming.
Could you decide which of these three packages meets your needs? Or is all this just too confusing? Cyril thinks so.
She writes that Plan A “will confuse low-income consumers” into buying this carrier’s cell phones because they won't be able to figure out that “if you want the WHOLE Internet, you just have to pay more.” Well, actually you don't have to pay more. The most expensive option — Plan C — costs $40 less than the least expensive offering of any of the other carriers. And if you later discover you don't like Plan A, you can upgrade to Plan B or Plan C with no penalty, or you can pay the $100 it would cost to get service similar to Plan C from competing carriers. And you can do that immediately, since none of these plans has an early termination fee. What’s wrong with paying less for the particular services you want?
benton.org/node/51174 | Minority Media and Telecommunications Council
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FTC TO INVESTIGATE IPHONE IN-APP PURCHASES
[SOURCE: Washington Post, AUTHOR: Cecilia Kang]
The Federal Trade Commission will review the marketing and delivery of mobile applications that charge users for products and services, such as through Apple's iTunes store. FTC Chairman Jon Leibowitz wrote in a letter to Rep Ed Markey (D-MA) that the practice of "in-app purchases" for certain applications on Apple iPhones, iPads and iPods raised concerns that consumers may not fully understand the ramifications of those charges. "We fully share your concern that consumers, particularly children, are unlikely to understand the ramifications of these types of purchases," Leibowitz wrote. "Let me assure you we will look closely at the current industry practice with respect to the marketing and delivery of these types of applications."
benton.org/node/51236 | Washington Post | Multichannel News - Leibowitz Q&A
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CELL PHONE RADIO WAVES EXCITE BRAIN
[SOURCE: National Public Radio, AUTHOR: Jon Hamilton]
Radio waves from a cell phone can affect the metabolism of a person's brain, according to a study in the Journal of the American Medical Association. But the effect has nothing to do with cancer, and researchers say there's no evidence that the increase in metabolism is harmful. The human brain relies on electrical signals to communicate, so it makes sense that the electromagnetic energy that a cell phone puts out might affect brain cells, researchers say. Nora Volkow, a brain researcher and director of the National Institutes of Health's National Institute on Drug Abuse, says she was intrigued by this possibility — for personal as well as professional reasons. Volkow says a 50-minute call clearly boosted brain metabolism. "There was an overall increase, approximately 6 to 8 percent," she says. "But only on the areas of the brain that were close to the antenna." Volkow says that level of increase in brain metabolism is not terribly dramatic — studies have shown that just opening your eyes can produce a much greater change in brain cells that process visual information. And scientists say it's hard to know what to make of the change. "Based on this finding I cannot say, 'Is this bad that you're increasing glucose metabolism?' Or 'could it be good?' " Volkow says. Other researchers agree there's no clear message from the result.
benton.org/node/51214 | National Public Radio | USAToday | Reuters | ars technica | national Journal | Washington Post
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MOBILE MUSIC ESTIMATES
[SOURCE: paidContent.org, AUTHOR: Ingrid Lunden]
New forecasts out for the mobile music market from Juniper Research: it will bring in revenues of $5.5 billion by 2015, compared to $3.1 billion last year. What’s interesting is that mobile music might just turn out to be more competitive than the digital market overall. While digital music is dominated by Apple’s iTunes, dozens of companies are piling into mobile music looking to capitalize on the opportunity, as long as the pesky pirates don't get to it first. Juniper analyst Daniel Ashdown tells mocoNews that currently iTunes makes up about 60 percent of mobile music market. Meanwhile, in digital music overall, iTunes accounts for 66.2 percent, according to December figures from NPD Group. But while iPods have long dominated the portable, digital music player market (giving a strong push to the iTunes market), in smartphones we have seen a dramatic entrance from Android, and that’s not even considering the still-strong role played by Nokia, as well as BlackBerry and others. Each of these platforms has been breeding a number of native and app-based music services, as well as offerings from mobile operators, which are all continuing to vie for business against Apple.
benton.org/node/51191 | paidContent.org
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TELECOM

USF DISPARITIES
[SOURCE: National Journal, AUTHOR: Juliana Gruenwald]
Sens Frank Lautenberg (D-NJ), Bill Nelson (D-FL), and John Kerry (D-A), chairman of the Senate Commerce Communications Subcommittee, are urging the Federal Communications Commission to address disparities in contributions between their states and others as part of the agency's overhaul of the Universal Service Fund, which subsidizes telecommunications service in rural and high-cost areas. They argue that on average their states pay much more into the fund than they receive back. New Jersey had the biggest disparity of the three states, paying an average of $4.68 into the fund for every dollar they get back. "Although we support the concept of universal service and recognize the importance of universal access to broadband for all Americans, the USF desperately needs to be changed to address the numerous inequities and inefficiencies in its current administration," the lawmakers wrote.
benton.org/node/51222 | National Journal
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INTERNET/BROADBAND

NET NEUTRALITY INSURANCE
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
A number of public interest groups have filed motions to intervene in Verizon and MetroPCS' challenges to the Federal Communications Commission's new network neutrality rules to preserve their rights to challenge those suits if they make it to trial. Free Press is representing itself, while Media Access Project is representing Media Mobilizing Project, Access Humboldt and Mountain Area Information Network. While the groups believe those suits were improperly filed and should be thrown out, they are hedging their bets in case that is not the case. "We hope the DC Circuit recognizes that the companies' suits are brought improperly and dismisses them, but we're filing today to preserve our rights to challenge the appeals if they're not dismissed outright."
benton.org/node/51231 | Broadcasting&Cable | National Journal
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COMCAST DEAL IN BOSTON
[SOURCE: Government Technology, AUTHOR: Lauren Katims]
Boston has partnered with Internet provider Comcast Corp. to give low-income residents cheaper rates for Internet services. The deal, announced by Boston Mayor Thomas M. Menino, will deliver low-cost broadband Internet access to thousands of low-income Boston residents who graduate from one of the city’s three federally funded Sustainable Broadband Adoption (SBA) programs. The programs are intended to increase digital literacy within the city through various workshops tailored for specific age groups. The 2,800 graduates will be eligible for broadband service for $10.95 a month in the first year, and $15.95 a month for a second year. Comcast’s standard price for broadband alone, with no TV or phone services, is $41.95 a month.
benton.org/node/51220 | Government Technology
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BROADBAND BUNDLING
[SOURCE: Organisation for Economic Co-operation and Development, AUTHOR: ]
Bundling can provide both benefits and drawbacks to broadband customers. In general, bundled services are less expensive when purchased together and consumer surplus from one good in the bundle can help “subsidise” another less-valued element. Bundling also allows the integration of products in a way that benefits consumers. In other cases bundles can lead to situations where customers are worse off. Consumers may be required to purchase a bundle which contains one product they value and others they do not. Bundling also raises some significant concerns regarding transparency and consumer “lock in”. Bundles may make it difficult or impossible for subscribers to switch providers of certain bundled services and not others. An OECD data collection of over 2 000 offers of stand-alone and bundled services from 90 firms across 30 OECD countries reveals that broadband services in the OECD are overwhelmingly sold as mixed bundles, allowing users to choose among stand-alone offers or bundled services. Of the 90 operators surveyed, 77% allow users to buy stand-alone broadband service. 17% tie broadband service to a fixed-line voice service and 4% require a television package to obtain broadband access. Only 2% of the offers surveyed required subscribers to take a triple-play service to have broadband. Broadband bundles are typically sold with a significant price discount over stand-alone prices. The average bundled discount compared with buying the services separately is USD 15 (PPP) per month or 26%. The average price of a triple-play bundle across all countries and operators is USD 65 (PPP) per month, while the median price is USD 59 PPP. The average entry-level price for a triple-play bundle is USD 41 PPP per month.
benton.org/node/51169 | Organisation for Economic Co-operation and Development
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TELEVISION/RADIO

IVI SCOLDED IN RULING
[SOURCE: ars technica, AUTHOR: Nate Anderson]
"Barely restrained incredulity" is not often a feature of judicial decisions, but today's ruling against Internet rebroadcaster ivi features a judge who isn't buying anything the company's lawyers are selling. ivi's business model consists of grabbing over-the-air TV signals from stations broadcasting in New York, Seattle, Los Angeles, and Chicago, then blasting those signals through the Internet to reach ivi's paying customers anywhere in the country. And did we mention that ivi had no permission from broadcasters for any of this? It might sound blatantly illegal, but ivi relied on an old compulsory license that Congress had created decades ago to help the cable industry get started. It insisted it was acting legally. "To place defendants’ argument in a real world context," wrote Judge Naomi Buchwald, "they assert that for the payment of approximately $100 a year to the Copyright Office (the payment for a Section 111 compulsory license) and without compliance with the strictures of the Communications Act or plaintiffs’ consent, that they are entitled to use and profit from the plaintiffs’ copyrighted works." But the judge ruled that ivi was not a cable operator and that "absent defendants’ skewed interpretation of the statutory text and administrative record, there is absolutely no basis for holding otherwise." "ivi’s architecture bears no resemblance to the cable systems of the 1970s," she continued. "Its service retransmits broadcast signals nationwide, rather than to specific local areas. Finally, unlike cable systems of the 1970s, ivi refuses to comply with the rules and regulations of the FCC… An opposite finding in this case would surely 'threaten considerable mischief.'"
John Bergmayer, staff attorney for Public Knowledge said, “We are disappointed that Judge Buchwald chose to shut down ivi at all, much less so early in the legal process. Her decision showed clearly the ambiguities in current law and regulation which online video providers like ivi face. If competition to traditional cable service is to develop in the online distribution sector, then the Federal Communications Commission (FCC) and Copyright Office are going to have to move quickly to update their rules to conform to the realities of new technology and consumer choice.”
http://arstechnica.com/tech-policy/news/2011/02/internet-streams-of-over...
US District Court (read the ruling)
benton.org/node/51194 | Ars Technica | read the ruling | B&C | Public Knowledge | paidContent.org
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PUBCASTING CUTS HURT RURAL AREAS
[SOURCE: San Francisco Chronicle, AUTHOR: Joe Garofoli]
House Republicans are in for a surprise if they intend to dish some payback to liberal parts of the nation by eliminating federal funding for the Corporation for Public Broadcasting, which conservative politicians have long claimed is a liberal mouthpiece. Small television and radio stations serving rural, politically red areas in California and other states would likely feel the biggest impact of such a move because 70 percent of public broadcasting funds are channeled to local stations. Well-endowed public broadcasting outlets in more liberal metropolitan areas - such as KQED in San Francisco - probably would be able to survive their share of a $430 million cut that is part of a GOP-sponsored bill trimming $61 billion in spending that passed the House on Feb 19. Only 7.8 percent of KQED's budget comes from the federal government, and the station has enough corporate and foundation donors - not to mention 200,000 members - to be able to absorb the blow better than most. Sixty percent of the station's revenue comes from individuals. That's not the case at KIXE-TV in Redding (CA), where 45 percent of the station's $1.7 million budget comes from federal taxpayers. The station is located in Shasta County, one of the few California counties that supported Republican Sen. John McCain over Democrat Barack Obama in the 2008 presidential election.
benton.org/node/51196 | San Francisco Chronicle
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FOX NEWS HIGHEST-VALUED NON-SPORTS CABLE NET
[SOURCE: Broadcasting&Cable, AUTHOR: Jon Lafayette]
Aside from sports channels, cable operators see Fox News Channel as the most valuable network that they carry. According to a new survey by Beta Research, operators said that Fox News had a perceived value of 58 cents per subscriber per month, barely topping Disney Channel, USA Network and Discovery Channel. It also topped CNN, which was valued at 48 cents per sub by the operators surveyed. In recent public remarks, News Corp. COO Chase Carey has remarked that some Fox News carriage agreements are up soon and that the company will be pushing for large increases in sub fees. Most of the other networks in the top 10 were sports channels, including ESPN and ESPN2, valued at $1.16 per sub and 71 cents per sub, respectively. Also highly valued were USA, the NFL Network, and TNT, which carries NBA basketball and will begin airing March Madness next month. Beta also surveyed operators about which cable sales organizations were most helpful in selling high-speed Internet, HDTV and video on demand. Disney/ESPN Media Networks came out on top, followed by Discovery Networks and NBC Universal Cable.
benton.org/node/51225 | Broadcasting&Cable
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EDUCATION

HOME LEARNING TRENDS
[SOURCE: The Huffington Post, AUTHOR: Elisabeth Stock, Blair Levin]
[Commentary] Both Professor Amy Chua and President Barack Obama recognize the importance of the home learning environment. But neither of them even hints at the extraordinary sea change that is now upon us -- one that enables parents and teachers to encourage learning at home even after the homework is done. This revolutionary change is being caused by a remarkable new generation of educational games, videos, and interactives now available online. Some might expect the advances in digital resources to widen the achievement gap between lower- and middle-income children. After all, wealthier families typically have more formal education, access to broadband, and educational software in their homes. But these new tools and resources can actually have the opposite effect of narrowing the achievement gap, especially when introduced with the right support. We must heed the President's call to invest in both education and broadband, but to do so in a way that dovetails the two to promote greater learning in the homes of students at all income levels. On education, we should increase from 1 percent to 2 percent the amount of Title I funds designated for family involvement. On broadband, we must push for better infrastructure while encouraging providers to follow the lead of some cable companies, like Time Warner Cable and Cablevision, that are offering deep discounts in selected service areas to low-income families with school children. Children, parents, and teachers can't do it alone. It is targeted investments by the government with support from the nonprofit and corporate sectors that can help us respond to our Sputnik moment. Our nation can only win the future if we improve student learning both inside and outside the classroom. Reducing TV time is a good first step. Now let's take the next step and harness the power of digital learning and the passion of parents -- Tiger moms and Western moms alike -- to do what is best for our children.
benton.org/node/51177 | Huffington Post, The
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DIVERSITY

CIVIL RIGHTS AND THE FCC
[SOURCE: The Hill, AUTHOR: Gautham Nagesh]
A coalition of minority advocacy groups, including the NAACP and Jesse Jackson's Rainbow PUSH Coalition, wrote to the Federal Communications Commission (FCC) and lawmakers complaining about a lack of progress on civil rights issues. The letter highlights two "unpleasant surprises" in the FCC's budget proposal: reduced funding for the Adarand studies that are used to justify affirmative action programs and cuts to the budgets of the Offices of Workplace Diversity and Communications Business Opportunities. "The only two FCC offices with substantive responsibilities whose funding was cut in the 2011 Budget were the two offices focusing on minority issues," the letter states, adding that the Workplace Diversity Office should be focused on why there are "almost no minority" senior officials in many of the Commission's Bureaus, including the Media Bureau. The groups argue that despite the fact minority radio, TV and cable channel ownership is "spiraling towards zero" the FCC has still yet to approve any minority ownership proposals and has only reviewed one of 72 before the agency. They also complain about the paucity of stimulus broadband grants for minority business owners and request a meeting with the FCC and lawmakers including Sen. Robert Menendez (D-NJ) and Reps. Bobby Rush (D-IL) and Ed Towns (D-NY).
benton.org/node/51249 | Hill, The
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HISPANICS TRAIL OTHER GROUPS ONLINE
[SOURCE: Washington Post, AUTHOR: Cecilia Kang, Krissah Thompson]
Hispanics are less connected to the Internet than whites and blacks, using Web sites less frequently and expressing more discomfort with computers and technology in the workplace, according to a new survey. That could set back the nation's fastest-growing ethnic group, experts say, as more employment, educational and health-care opportunities migrate online. According to a new Washington Post-Kaiser Family Foundation-Harvard University poll, 72 percent of Hispanics say they use the Internet, lower than the percentages of whites and African Americans. Fully 57 percent of Hispanics say they don't have enough knowledge about computers and technology to be competitive in the current job environment. That compares with 46 percent of whites and 45 percent of blacks who feel the same level of insecurity about their technological skills.
benton.org/node/51245 | Washington Post
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February 2011

Apple's new subscription policy could cost Amazon $80-$160 million per year

Contacting media should be easy as 1, 2, 3

'We believe in health IT': HHS Sec Sebelius

February 23, 2011 (Wireless Innovation, Who Wants Some?)

Minority groups say civil rights getting worse at the FCC

How Dynamic Is The Mobile Internet Marketplace? Good Question. No, It Really Is A Good Question.

Hispanics trail other groups in Web usage, confidence

Vodafone in Egypt: How tech companies can uphold, not violate, human rights

New Way to Check Out eBooks