March 2011

BENTON'S COMMUNICATIONS-RELATED HEADLINES for WEDNESDAY, MARCH 2, 2011

Today's (many) events include a look back at the first year of the National Broadband Plan. We're tracking the Broadband Plan every day -- see http://benton.org/initiatives/national_broadband_plan

INTERNET/BROADBAND
   Dem memo: Network neutrality repeal would tie the FCC's hands
   Reps Waxman and Eshoo Request Hearing on Open Internet Disapproval Resolution
   Defining Internet "freedom"
   Our national broadband strategy: Wireless déjà vu?
   Wired towns edge out big cities
   Open Access Middle Mile Broadband Networks Gaining Momentum
   Global broadband spending jumps as China boom, stimulus high linger
   States Make Play for Web Gambling
   Ofcom eyes broadband code move

WIRELESS
   House Panel To Begin Examination of Spectrum Issues
   Phoenix Center Says Economics Prescribe Allocation of D Block to Public Safety Rather Than Using Spectrum for Commercial Purposes
   How the 'app Internet' is changing the game
   Verizon Wireless Will End Unlimited Data Plans for IPhone
   Kundra suggests feds get $2,000 subsidy for mobile devices

TELEVISION
   National Survey Finds 69 Percent of Voters Oppose Congressional Elimination of Government Funding for Public Broadcasting
   Sen. Boxer on PBS cuts: 'Republicans have a vendetta against Elmo'
   Chairman Upton: Retrans Regime Should Not Favor Either Party
   McDowell: Don't Expect Big Changes From FCC On Retransmission
   McDowell: FCC Quietly Dismissing Indecency Complaints
   Sen Udall: Broadcasting Still Matters
   Viewers will pay if Fox TV gets affiliates to give up more revenue
   Pay TV's full-court press

PRIVACY
   Supreme Court rejects 'personal privacy' for corporations in Freedom of Information Act case

HEALTH
   Consumer Groups: Hold Strong on Meaningful Use
   Improving public health one app at a time

POLICYMAKERS
   Former Sen Chris Dodd to head Motion Picture Association of America
   Defining Internet "freedom"

COMMUNITY MEDIA
These headlines presented in partnership with:

   Community Media Outlets Under Attack In The States
   Media Landscape Changed in Venezuela by New Community Media
   Community Radio: The Key To Propel Rural Development In India
   University of Florida Libraries Partner in In-Library eBook Lending Program Launched
   Local school districts, libraries taking steps to withstand more state budget cuts
   Libraries Offer More Than Books

STORIES FROM ABROAD
These headlines presented in partnership with:

   Ofcom eyes broadband code move
   Canada's telecoms fight over spectrum auction rules
   Austria Consults on Frequencies for Mobile Broadband Services
   Swiss court to rule on Google Street View privacy
   Study: One in three mobile phone owners is a regular mobile gamer
   You Say You Want a Revolution?

MORE ONLINE
   Middle East Turmoil is Top Story
   Islam Was No. 1 Topic in 2010
   Gates Foundation Puts Whispers in Teachers' Ears With NFL-Inspired Tech
   Judge approves Qwest-CenturyLink class-action settlement
   Proposed budget cuts target science

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INTERNET/BROADBAND

NET NEUTRALITY REPEAL WOULD TIE FCC'S HANDS
[SOURCE: The Hill, AUTHOR: Sara Jerome]
A proposal from House Republicans to repeal network neutrality could tie the hands of the Federal Communications Commission (FCC) and prevent the agency from reissuing Internet line rules, which have been broadly accepted, House Democrats said. The memo says that the Republican plan to roll back the rules through the Congressional Review Act (CRA) could create "uncertainty" about the FCC's role. The memo prepares House Commerce Committee staffers for a March 2 markup of a resolution of disapproval against network neutrality rules. The resolution was introduced by committee Republicans. The Democratic memo points out that if the House votes to disapprove of network neutrality rules, the regulations may not be reissued except by legislation, according to the Congressional Review Act. In the Democrats' view, this means the resolution would "introduce significant uncertainty regarding the role of the FCC, even where there is general agreement on the need for FCC action." The memo objects to CRA repeal of net-neutrality rules because there is "broad agreement on certain aspects of the FCC’s rules, such as the need for transparency, the prohibition on blocking of lawful content, and the right to exercise reasonable network management." The CRA repeal, however, "would bluntly remove the FCC’s authority to enforce even these consensus measures," the Democrats argue.
benton.org/node/51723 | Hill, The
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DEM HEARING REQUEST
[SOURCE: House of Representatives Commerce Committee, AUTHOR: Rep Henry Waxman (D-CA), Rep Anna Eshoo (D-CA)]
Rep Henry Waxman, Ranking Member of the House Commerce Committee, and Rep Anna Eshoo, Ranking Member of the House Communications and Technology Subcommittee, sent a letter to House Commerce Committee Chairman Fred Upton (R-MI) and Subcommittee Chairman Greg Walden (R-OR) requesting regular order in the subcommittee’s consideration of H.J. Res. 37, a resolution disapproving the Federal Communication Commission’s open Internet rule. In the letter, Reps. Waxman and Eshoo request that the subcommittee hold a legislative hearing before convening a markup of the bill.
benton.org/node/51721 | House of Representatives Commerce Committee | National Journal
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WIRED TOWNS
[SOURCE: Futurity, AUTHOR: ]
The rise of commercial aviation, high-speed rail, the Internet, and other technological advances have allowed smaller cities to compete with urban powers such as New York and Chicago, says Michigan State University sociologist Zachary Neal. His study—published this week in the journal City and Community -- identifies Denver, Phoenix, and even Bentonville, Ark. (Wal-Mart’s corporate home) -- as some of the most well-connected and economically sophisticated communities. “Fifty years ago, no one would have thought to put a multinational corporation in Bentonville, Ark., when it could be in New York or Chicago or Los Angeles,” says Neal. “But changes in technology have started to level the playing field in terms of what cities can do.” Neal examined the population and air-traffic data for 64 U.S. cities from 1900 to 2000. He found that a city’s population was the most important factor for its economy until the 1950s, when the spread of commercial air travel fostered more cross-country business networks. That trend continued with advances such as teleconferencing and the growth of the Internet. Some large cities -- including New York, Los Angeles, and Chicago -- built on those networks and maintained their economic clout, according to the study. Other cities -- like Detroit, Cleveland, and Pittsburgh -- were unable to effectively capitalize and now are considered “poorly connected.” This holds true for the overall economies of the cities and for specific sectors such as manufacturing and transportation and communication, Neal said.
benton.org/node/51697 | Futurity
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OPEN ACCESS MIDDLE MILE BROADBAND
[SOURCE: Telecompetitor, AUTHOR: Joan Engebretson]
Middle mile open access fiber networks are springing up all over. And although these networks share one key common principle—open access for other network operators—each implementation seems to have its own unique funding and operational model. One of the more unique models is that of Massachusetts Broadband Institute, which announced that it has chosen Axia NetMedia Corporation, an international broadband network operator, to serve as the operator of the 1,338-mile network the institute is building in western and north central Massachusetts. MBI isn't the first middle mile project to use an independent company to manage the network. But it is the first U.S. organization to choose Axia NetMedia for that role. Axia NetMedia has broadband networks in Canada, France, Singapore and Spain, including a 9,320-mile open access network in Alberta, Canada. “This is a critical step toward extending broadband access and bridging the digital divide,” said MBI Director Judith Dumont in an announcement of the deal with Axia NetMedia. “Axia’s expertise in successfully developing broadband networks will help us deploy high-speed Internet services to residents and businesses that have been unconnected for too long.” Another unique aspect of the MBI network–dubbed MassBroadband 123– is its funding, which included $45.4 million from a broadband stimulus award and $26.2 million in matching funds from the Commonwealth of Massachusetts. MBI was created as a result of a Broadband Act adopted by Massachusetts state legislators in 2008.
benton.org/node/51747 | telecompetitor
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STATES AND ONLINE GAMBLING
[SOURCE: Wall Street Journal, AUTHOR: Alexandra Berzon]
Efforts to legalize online gambling in the U.S. are moving to the states as lawmakers roll the dice on bills that aim to steer around federal laws effectively prohibiting Internet wagering. The first real test of the state efforts comes this week in New Jersey, where Gov. Chris Christie (R) is expected to decide the fate of a bill that would let Atlantic City casino companies run gambling websites for state residents. The bill would make New Jersey the first state to sanction online gambling. The Republican governor, who has until March 3 to veto or sign the bill, hasn't publicly stated his stance. Regardless of Gov Christie's decision, gambling experts say momentum is growing behind states' efforts to legalize online gambling for their own residents, known as intrastate gambling. Last week, Iowa lawmakers introduced a bill to legalize online poker, and California and Florida are among other states considering similar bills. Once one state passes an online-gambling law, "you will see other states go 'aha.' It will spread very rapidly," said Anthony Cabot, an expert in Internet gambling law.
benton.org/node/51772 | Wall Street Journal
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WIRELESS

SPECTRUM HEARING
[SOURCE: National Journal, AUTHOR: Juliana Gruenwald]
House Commerce Committee Chairman Fred Upton (R-MI) said that the panel will begin its examination of spectrum issues next week with a hearing. During a speech at the National Association of Broadcasters state leadership conference, Chairman Upton said the committee wants to craft legislation that would ensure both broadcasters and wireless providers can continue to provide consumers with what they want: access to television and spectrum to meet the growing demand for wireless broadband. "We want to design a win, win, win strategy," Chairman Upton said. "We want to have broadcasters to win, wireless [operators] to win and the public to win in terms of deficit reduction." Among the issues policymakers must tackle include how to free up more spectrum for wireless broadband and whether to re-allocate a controversial chunk of spectrum known a the D-block to public safety officials for a national broadband interoperable network. Chairman Upton did not give any signals as to what proposals the committee would take up, saying the hearings will help educate lawmakers on the issues.
benton.org/node/51750 | National Journal | B&C
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D BLOCK SPECTRUM
[SOURCE: Phoenix Center for Advanced Legal & Economic Public Policy Studies, AUTHOR: Lawrence Spiwak, George Ford]
In a new study released today, the Phoenix Center finds that assigning the 10 MHz of contiguous 700 MHz spectrum, the D Block, to public safety could provide at least $3.4 billion more in social benefits than the auction of this spectrum for commercial use as favored by FCC Chairman Julius Genachowski. As the Phoenix Center explains, much of this difference is attributable to the unique opportunity to create a contiguous 20 MHz block of prime spectrum for use by public safety, and to the fact that this opportunity exists only for the public safety community.
The study argues that with the Obama Administration’s promise of freeing up an additional 500 MHz of spectrum for commercial use over the next five years, there would be only a relatively small impact of a temporary, incremental increase of 10 MHz of spectrum on market outcomes. The study also suggests that the loss of auction revenues today is more than offset by higher auction revenues and lower public safety network deployment costs tomorrow. Thus, the auction adds, rather than relieves, stress to the public budget.
In the study, the Phoenix Center also estimates that if policymakers chose not to give public safety the D Block and instead opt to require future allocations of 700 MHz spectrum to support the encroachment of public safety users during episodes of resource scarcity, then such encumbrances could materially diminish the auction value of such spectrum by as much as 86%.
benton.org/node/51704 | Phoenix Center for Advanced Legal & Economic Public Policy Studies | read the report
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THE APP NET
[SOURCE: InfoWorld, AUTHOR: Pete Bapp]
Good-bye, Internet revolution -- hello, app revolution! The proliferation of smartphones, tablets, and vibrant app ecosystems such as the ones around the iPhone/iPad and Android devices are set to change the game. This shift will arrive through a new wave of innovation that links cloud-based services, smart computing, and app-enabled devices, including cars, appliances, and entertainment systems, according to new research from Forrester. A new report, "Mobile App Internet Recasts the Software and Services Landscape," from John McCarthy posits that on the heels of the App Store/Android Market revolution will come a second explosion of innovation that will displace activity away from the Web and toward apps as the mobile market takes over and devices become more sophisticated -- and more numerous. This transformation will present a major opportunity for developers and enterprises to create apps, as well as set up and manage the devices they're on.
benton.org/node/51743 | InfoWorld
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TELEVISION

PUBLIC SUPPORT FOR PUBCASTING
[SOURCE: Public Broadcasting System, AUTHOR: Press release]
A national survey undertaken by the bipartisan polling firms of Hart Research and American Viewpoint indicates overwhelming public opposition (69% to 27%) to proposals to eliminate government funding of public broadcasting, with voters across the political spectrum opposed to such a cut, including 83% of Democrats, 69% of Independents, and 56% of Republicans. More than two-thirds (68%) of voters say that Congressional budget cutters should “find other places in the budget to save money.” PBS commissioned this research to measure the organization’s performance and value as judged by its most important stakeholder – the American public. On behalf of PBS, the bipartisan polling team of Hart Research Associates (D) and American Viewpoint (R).
Highlights of the survey results include:
Cutting the federal budget deficit is a strong priority of the American public, but so is public broadcasting – fully eight in ten (82%) voters say reducing the deficit should be an “absolute top priority” (42%) or a “high priority” (40%) for the country – but these voters also say that eliminating funding for public broadcasting is the wrong way to go about it.
Even among the 42% of voters who say that reducing the deficit should be the nation’s top priority, 60% oppose eliminating funding for public broadcasting.
Support for PBS (73% “excellent” or “good” value) ranks second only to “the country’s military defense” (81% “excellent” or “good” value), when voters were asked to rank “the value for your tax dollars” of specific government-funded programs.
Nearly 8 in 10 voters (79%) believe that PBS should receive “the same amount of government funding” (49%), or “more government funding” (30%) than it currently receives. Ninety-two percent (92%) of Democrats favor the “same amount” or “more government funding” of PBS, as do 75% of Independents, and 67% of Republicans when told that “PBS/public television stations receive about 15% of their funding from the federal government,” and that this “comes out to about one dollar per American each year.”
More than six voters in ten (61%) who believe deficit reduction is an important goal also support funding for public broadcasting. Sixty-one percent (61%) agreed with the statement, “Reducing the nation’s budget deficit is an important goal, but public broadcasting provides a valuable public service at a very low cost to taxpayers. There are many better ways to reduce government spending than by eliminating funding for this important priority.” Only 31% of voters agreed with the argument that “Public broadcasting may be important, but with the nation facing a huge budget deficit, we need to make difficult decisions and reduce government spending everywhere we can, including funding for PBS and NPR.“
Six out of ten voters (61%) believe the consequences of defunding PBS would be a “massive loss” (24%) or “significant loss for the country,” (37%) when told that eliminating public funding of the 15% of their budgets that PBS and PBS stations receive from the Federal government “could force PBS to eliminate some programming and jeopardize some PBS public television stations.”
Seventy-two percent (72%) of voters said they would be concerned “a great deal” (56%) or “a fair amount” (16%) if PBS had to “significantly cut back on the educational shows that help children prepare for success in school.” Sixty-seven percent (67%) indicated “a great deal” (53%) of concern or “a fair amount” (14%) of concern if such cuts were to lead to the closing of “your local PBS station.”
Concern about the possible consequences of cuts on PBS’ ability to provide educational programming for children was seen across the political spectrum, with 88% of Democrats, 71% of Independents, and 56% of Republicans expressing such concern.
PBS is America’s most trusted institution. In fact, American voters have twice the level of trust in PBS (44% “trust a great deal”) over the nearest tested institution, Courts of Law (with 22% “trust a great deal”).
benton.org/node/51714 | Public Broadcasting System | TVNewsCheck
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UPTON ON RETRANSMISSION
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
House Commerce Committee Chairman Fred Upton (R-MI) said that neither Congress nor the Federal Communications Commission should be getting in the middle of retransmission consent negotiations. "As we look at retransmission consent, I think we shouldn't have legislation mandating carriage arrangements...There are very few cases where we haven't seen an agreement between the parties." Until he saw otherwise, he said, the private sector should be allowed to work it out itself. That line drew strong applause from the broadcasters Upton was speaking to at the National Association of Broadcasters' State Leadership Conference. He suggested that part of that free market equation that drives the vast majority of deals without signal pulling is big ticket sporting events like March Madness or the World Series; those prompt viewers to put pressure on all parties to do a deal before the contracts expire.
benton.org/node/51752 | Broadcasting&Cable
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MCDOWELL DOWNPLAYS RETRANSMISSION PROCEEDING
[SOURCE: National Journal, AUTHOR: Juliana Gruenwald]
Federal Communications Commission member Robert McDowell said those seeking major changes from the FCC to the retransmission consent process involving broadcasters and cable and satellite providers will likely be disappointed. During a discussion with National Association of Broadcasters President and CEO Gordon Smith at the group's state leadership conference, Commissioner McDowell was asked about possible changes the FCC may make to the process under which cable operators and other multichannel video programming distributors negotiate the fees they pay broadcasters to use their programming. The FCC is set to take up an item at its monthly meeting Thursday that seeks comment on possible changes to the current retransmission process. But Commissioner McDowell noted that major changes will have to be made by Congress.
benton.org/node/51711 | National Journal
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FCC DISMISSING INDECENCY COMPLAINTS
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
The Federal Communications Commission has quietly dismissed indecency complaints against television stations and more than 6,000 programs, which should clear the way for some of the 315 pending TV license renewals, most of which are being held up by the complaints, to be processed, said FCC Commissioner Robert McDowell. Commissioner McDowell told an audience of broadcasters at the NAB State Leadership Conference that after his staff had been in touch with the Enforcement Bureau about how some of those license issues could be resolved "we discovered that the bureau has actually been quietly dismissing complaints that fall outside the scope of our authority." That includes complaints against programming that had aired between 10 p.m. and 6 a.m., when the FCC's indecency rules do not apply, and ones dealing with violent content, over which the FCC has no authority. FCC sources in the past have also pointed to the dropping of some complaints due to the expiration of the statute of limitations. There were over a million complaints in the pipeline, Commissioner McDowell has said previously. Monday he did not talk in terms of complaints, but programs, saying that about 15,000 broadcasts were the subjects of those complaints as of last year, and that those had now been whittled down to 8,700 by last month. Commissioner McDowell, who has said the FCC needed to work through that backlog, gave FCC Chairman Julius Genachowski props for progress, and said he hoped it would continue.
benton.org/node/51755 | Broadcasting&Cable
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FOX TAKING RETRANSMISSION FEES FROM STATIONS
[SOURCE: Los Angeles Times, AUTHOR: Michael Hiltzik]
[Commentary] Broadcast television networks are sticking their hands deeper into another pocket — that of their own broadcast affiliates. What's at issue are the "retransmission fees" that cable and satellite companies pay local broadcasters for the right to carry the latters' signals on their systems. The fees generally come to 10 to 20 cents per pay-TV subscriber per month, industry executives say. In other words, if you're a local TV station and your local cable company has 1 million subscribers, it will pay you $100,000 to $200,000 a month to feed your broadcast to its customers. All four major networks have been hungering for a piece of the local affiliates' action, arguing that much of what the affiliates are feeding the pay-TV systems is network content. But local stations say Fox has taken a far more aggressive stance toward its 186 independently owned affiliates than the other networks have.
benton.org/node/51768 | Los Angeles Times
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PRIVACY

COURT REJECTS PRIVACY CLAIMS OF CORPORATIONS
[SOURCE: Los Angeles Times, AUTHOR: David Savage]
Corporations do not have right to "personal privacy," the Supreme Court ruled, at least when it comes to the Freedom of Information Act and the release of documents held by the government. In an unanimous decision, the justices rejected a claim brought by AT&T, which was trying to prevent the release of information compiled during an investigation of its billing practices by the Federal Communications Commission. The law says most such information is subject to release, except when it would can cause "an unwarranted invasion of personal privacy." Last year, AT&T won a ruling based on that provision, but the Supreme Court disagreed. Chief Justice John G. Roberts Jr. said the phrase "personal privacy" is understood to refers to persons, not to artificial entities like a corporation.
benton.org/node/51719 | Los Angeles Times | Supreme Court
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HEALTH

CONSUMERS ON MEANINGFUL USE
[SOURCE: Health Data Management, AUTHOR: Joseph Goedert]
A coalition of 25 consumer groups and unions is asking federal officials to hold firm on more stringent criteria for Stage 2 of electronic health records meaningful use, and expressing support for going further. For instance, because patients still trust their providers more than other information sources, holding providers accountable for actual usage of a patient Web portal "is entirely appropriate and we strongly urge ONC to resist pressure from the provider community to absolve them from responsibility for making these services available and useful to their patients," according to a comment letter to the Office of the National Coordinator. "In other industries, performance is routinely based on how well customers needs are met, as indicated by sales or usage of a particular product," the groups contend. "Providers have a significant impact on whether or not consumers use the tools provided to them, as has been shown by leaders in consumer engagement efforts. The fact that they do not have 100 percent control over whether a patient uses a 'portal' is no justification for backing away from this critical step." The consumer organizations and unions express support for providers informing patients of the existence of advance directives, providing online access to patients' own data and secure messaging capabilities, requiring a longitudinal care plan for chronically ill patients, and substantially more robust use of health information exchange technologies.
benton.org/node/51745 | Health Data Management
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