April 2011

Kundra agrees with Obama on IT purchasing

Federal CIO Vivek Kundra agreed with President Barack Obama’s comments on April 14, in which the President complained about how the government buys IT. “The President is absolutely right. When we came into office, federal IT was undeniably broken,” Kundra said. “These problems weren't created overnight, and they won't be solved overnight.” President Obama complained at a reelection fundraiser that the government buys IT that's “like 30 years behind” the technology curve. “Our IT purchasing is horrible.” The President also said that outdated equipment is a problem throughout the government, including the Defense and Homeland Security departments. “That’s why we are aggressively cracking down on wasteful IT spending and turning around poorly performing projects,” Kundra said.

Celebrating 30 Years with a Focus on the Future

Determined. Passionate. Agile. That’s the Benton Foundation, a small organization among giant foundations, global nonprofits, immense communication companies, and the behemoth that is the federal government. Our size is our strength. It enables us to tightly focus on media and their critical role in serving the public interest. For 30 years, we have championed media as the bedrock of democracy. Thirty years ago, the Benton Foundation set out to articulate what media that serve the public interest might look like.

Since then we have consistently embraced this vision:

Access, equity, and diversity are paramount.
Nonprofit organizations, educators, and community-builders are equipped with communications tools and training.
Media production and content come from increasingly decentralized, inclusive, and diverse sources.
Political debate and deliberation expand and become both more participatory and more informed.

Today's Quote 04.19.11

"The best minds of my generation are thinking about how to make people click ads. That sucks."
-- Jeff Hammerbacher, Facebook

Technology job recovery spreads through Silicon Valley

A technology-led recovery in Silicon Valley is slowly spreading throughout the local economy, as every major industry except construction added jobs in March, according to a report from the California Employment Development Department.

The valley's job growth was tops among the state's 10 largest metro areas. "This is a recovery led by tech," said Stephen Levy of the Center for Continuing Study of the California Economy, "pushed partly by social networking companies like Facebook and Internet and search giants like Google." The economic recovery is being driven by national trends that don't necessarily add up to a lot of jobs elsewhere, said Brad Kemp of Beacon Economics. "They are not investing in labor," he said. "They are investing in efficiency and automation, and Silicon Valley and San Francisco benefit from that focus. Hardware and software are going to feel that effect.'' Ballooning demand for mobile devices of greater and greater power is also pushing job growth.

Chairman Issa: regulations 'hampering' technology industry

Foreign companies are surpassing U.S. tech companies because of burdensome regulations, House Oversight and Government Reform Committee Chairman Darrell Issa (R-CA) said: "It wasn't that long ago that the nation’s research, innovation, and high tech industries were unequaled; there was no more attractive country than the United States for technology start-up capital. More recently, however, the shine has started to come off the apple, and there seems little doubt that federal policies and regulations have played a large role in hampering growth."

Chairman Issa, a former technology executive who was once chairman of the Consumer Electronics Association (CEA), said he was concerned that burdensome regulations are hurting the growth of the U.S. technology sector and that foreign countries are surpassing the U.S. in terms of technological prowess. Chairman Issa attacked the government’s visa program as well as federal initiatives to provide citizens with more government data.

Google vice president for access services Milo Medin testified that the Federal Communications Commission's slow pace can cause uncertainty for businesses. "Agencies like the FCC all too often open up rulemaking dockets soliciting formal comments, receive a flood of documents from interested parties, and then fail to act for months or years — if they even act at all. The result is uncertainty, which is bad for business, bad for innovation and bad for investment," he said. Medin focused on spectrum calling on the government to move faster to clarify spectrum policies. In particular, he wants clarification on which airwaves will be available for unlicensed use in the aftermath of repacking, which will move broadcasters to a different part of the spectrum if the FCC gains auction authority from Congress. Medin also advocated for a policy loathed by some parts of the cable industry: municipal broadband. "Localities know more about what works for their communities than state governments or the federal government do. In the end, we feel that while this is probably not the right choice in many cases, it is something that should not be prohibited," he said.

Rep Latta introduces spectrum bill

Rep Bob Latta (R-OH), a member of the House Commerce Committee, has introduced a bill that would give the Federal Communications Commission (FCC) incentive auction authority. The FCC would be authorized to auction off some spectrum currently used by television broadcasters to mobile broadband companies, raising revenue for the Treasury. The Administration wants some of the money to go toward R&D spending and a public safety network. "In order to meet tomorrow’s high volume of mobile data, it is imperative we allow the Federal Communications Commission (FCC) to conduct voluntary incentive auctions. Passing this measure would permit the wireless broadband industry to grow, increasing U.S. jobs, productivity and innovation," said Rep Latta.

2012 GOP presidential hopeful explore digital future, news ways to capitalize on social media

Welcome to The Social Network, presidential campaign edition. Republican Tim Pawlenty disclosed his 2012 presidential aspirations on Facebook. Rival Mitt Romney did it with a tweet. President Barack Obama kicked off his re-election bid with a digital video emailed to the 13 million online backers who helped power his historic campaign in 2008. The candidates and contenders have embraced the Internet to far greater degrees than previous White House campaigns, communicating directly with voters on platforms where they work and play. If Obama’s online army helped define the last campaign and Howard Dean’s Internet fundraising revolutionized the Democratic primary in 2004, next year’s race will be the first to reflect the broad cultural migration to the digital world.

This Tech Bubble Is Different

"The best minds of my generation are thinking about how to make people click ads," says Facebook research scientist Jeff Hammerbacher. "That sucks."

Online ads have been around since the dawn of the Web, but only in recent years have they become the rapturous life dream of Silicon Valley. Arriving on the heels of Facebook have been blockbusters such as the game maker Zynga and coupon peddler Groupon. These companies have engaged in a frenetic, costly war to hire the best executives and engineers they can find. Investors have joined in, throwing money at the Web stars and sending valuations into the stratosphere. Inevitably, copycats have arrived, and investors are pushing and shoving to get in early on that action, too. Once again, 11 years after the dot-com-era peak of the Nasdaq, Silicon Valley is reaching the saturation point with business plans that hinge on crossed fingers as much as anything else. "We are certainly in another bubble," says Matthew Cowan, co-founder of the tech investment firm Bridgescale Partners. "And it's being driven by social media and consumer-oriented applications." There's always someone out there crying bubble, it seems; the trick is figuring out when it's easy money -- and when it's a shell game. Some bubbles actually do some good, even if they don't end happily. This time, the hype centers on more precise ways to sell. So if this tech bubble is about getting shoppers to buy, what's left if and when it pops? "My fear is that Silicon Valley has become more like Hollywood," says Glenn Kelman, chief executive officer of online real estate brokerage Redfin, who has been a software executive for 20 years. "An entertainment-oriented, hit-driven business that doesn't fundamentally increase American competitiveness."

US Advertising Sales to Grow by 1.8% This Year, MagnaGlobal Forecasts

US advertising sales will increase 1.8 percent in 2011, less than last year’s 3.2 percent, reflecting a slow recovery in the overall economy, according to MagnaGlobal, a unit of Interpublic Group. Excluding 2010 spending for the Olympic Games and political races, sales this year will rise 3.1 percent. Large advertisers will continue to shift spending to cable television networks from broadcast channels during the year, MagnaGlobal said. Cable spending will increase 10.8 percent, compared with 2.4 percent growth for broadcast networks.

FCC Seeks Public Input on Video Relay Service

The Federal Communications Commission is seeking public comment on the rates and compensation for video relay service (VRS) for the 2011-12 Interstate Telecommunications Relay Services (TRS) Fund (Fund) year. Specifically, the FCC seeks further comment on VRS market structure and compensation method proposals initially raised in a 2010 Notice of Inquiry related to the structure and practices of the VRS program. In addition, in the event the FCC is unable to fully resolve these issues prior to the beginning of the 2011-12 Fund year, it tentatively concludes that extending the current interim rates and compensation structure provides the best means to ensure stability and certainty for VRS while the FCC continues to evaluate the issues and the substantial record developed in response to this proceeding.

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