April 2011

In cyberspy vs. cyberspy, China has the edge

As America and China grow more economically and financially intertwined, the two nations have also stepped up spying on each other. Today, most of that is done electronically, with computers rather than listening devices in chandeliers or human moles in tuxedos. And at the moment, many experts believe China may have gained the upper hand. Though it is difficult to ascertain the true extent of America's own capabilities and activities in this arena, a series of secret diplomatic cables as well as interviews with experts suggest that when it comes to cyber-espionage, China has leaped ahead of the United States.

Apps for Communities Challenge

In a new, nationwide contest, communities and software developers will compete to develop software applications ("apps") that get personalized, actionable information to people least likely to take advantage of the digital revolution. The is part of the FCC's and the John S. and James L. Knight Foundation's efforts to foster digital inclusion and promote broadband adoption. Details are posted at Appsforcommunities.challenge.gov.

Surrounded by Mayor Jean Quan of Oakland, Mayor Ed Lee of San Francisco and Mayor Chuck Reed of San Jose, FCC Chairman Julius Genachowski announced the contest. "This challenge uses the power of broadband and the ingenuity of creative thinkers across America to help advance our country's broadband agenda," said Chairman Genachowski. "I expect we'll see great new apps that use public data to help people all over the country seize the broadband revolution and improve their access to jobs, health care and educational opportunities."

"In the digital age, access to the Internet is fundamental to democracy. To the extent that a large portion of Americans have no broadband access, they can't fully participate in this society and they also can't become part of the demand that will drive further innovation. We are proud to partner with the FCC in an effort to increase access to the Internet for all Americans and to entice them to actively use that access," said Alberto Ibargüen, president and CEO of Knight Foundation. He added, "Contests can promote innovation in all sorts of unexpected ways. This particular challenge is designed to encourage and reward people for solving local problems through technology. 'Tech-for-engagement' is in its infancy but holds huge promise."

The seeks to take advantage of the local, public information coming online - on topics from education to health care, child care, government services and jobs - and make it easily accessible to the public. Contestants will be asked to turn that information into content, apps and services that expand people's choices on critical issues. These apps could, for example, give people valuable information about their communities in an easily digestible graphic on their mobile devices; help seniors, immigrants, and others use tools such as Skype to communicate; allow consumers to choose a health care provider; or deliver contract and seasonal job post alerts in English and Spanish via text message.

Knight Foundation is offering $100,000 dollars in prizes, with additional prizes awarded to the best apps that reach and engage traditionally underserved communities-people with disabilities, seniors, and those whose first language is not English.

FCC Commissioner Clyburn on Women in Public Safety Communications

Speaking at the Association of Public Safety Communications Officials International's Women in Public Safety Communications Leadership Conference, Federal Communications Commission member Mignon Clyburn addressed two of her passions: promoting public safety and empowering women.

She said: "Women face unique challenges in the workplace, but as I'm sure you've been told throughout the conference and during your personal and professional experiences, the ability to overcome those challenges is the trademark of a truly effective leader. It is important to understand and embrace the fact that there is more than one path to becoming a leader in this industry. Each of you brings diverse styles, interests, backgrounds, experiences, approaches, skill-sets, and answers to the table. This diversity is a strength; not a weakness. Some may have concluded that because you work in a male dominated environment, you should try to blend in; be like one of the guys. There is a time and a place for collaboration, and a time and a place for fitting in. But there is also a time and a place for standing out. There is a place for diversity in the communications industry - and as a matter of fact, there's a need.

"The more a local public safety agency reflects the diversity of its local community, the better prepared that agency is to serve the public safety needs of its citizens. Such an agency can better react to situations, and be better equipped to calm an individual who is desperate for help. There are circumstances in which a woman may not be comfortable opening up to a male 9-1-1 operator. Or, there may be callers who are less proficient in the English language. Your ability to relate to them in some way may actually mean the difference between life and death."

AT&T's $39 Billion T-Mobile Deal Faces Coordinated Review

Apparently, the Federal Communications Commission and the Department of Justice will coordinate their reviews of AT&T's proposed acquisition of T-Mobile. The deal needs approval from the FCC and Justice Department, and is to face hearings in Congress. The FCC and Justice Department will work on parallel tracks, and coordinate with one another, an anonymous FCC source says. AT&T intends to file its application at the FCC around April 21, said AT&T spokesperson Michael Balmoris.

FCC Opens Docket for Proposed Acquisition of T-Mobile by AT&T

On March 21, 2011, AT&T and Deutsche Telekom announced an agreement under which AT&T will acquire T-Mobile USA from Deutsche Telekom in a cash-and-stock transaction currently valued at approximately $39 billion. Applications seeking Federal Communications Commission consent to the transfer of control of T-Mobile USA and its wholly-owned and controlled subsidiaries (“Applications”) are expected. The purpose of this public notice is to announce the opening of a docket, WT Docket No. 11-65, and articulate the ex parte status of discussions related to the proposed transaction.

Until the Applications are filed, discussions with FCC staff regarding this proposed transaction will continue to be exempt from any ex parte limitations or requirements. When applications are filed, this proceeding will be governed by permit-but disclose ex parte procedures that are applicable to non-restricted proceedings. Parties making oral ex parte presentations after the Applications are filed are directed to the FCC’s statement reemphasizing the public’s responsibility in permit-but-disclose proceedings and are reminded that memoranda summarizing the presentation must contain the presentation’s substance and not merely list the subjects discussed. More than a one- or two-sentence description of the views and arguments presented is generally required. At the time any Applications are filed with the FCC, the Commission will release a public notice to announce that fact. That public notice will also provide procedures for requesting ex parte meetings with staff regarding the proposed transaction.

Congress trims State’s Internet freedom funds

In a rebuke to the State Department, Congress has cut its budget for promoting Internet freedom and directed the government’s international broadcasting arm to take over some of the job of helping people in repressive societies reach censored Web sites.

Secretary of State Hillary Rodham Clinton has made Internet freedom a signature issue. But State Department officials have battled with lawmakers and others over how to spend tens of millions of dollars intended to promote the “freedom to connect.” The issue has taken on added urgency as demonstrators in Egypt, Tunisia and other countries have used social media sites such as Facebook to organize uprisings. The 2011 budget bill that Congress is expected to pass Thursday gives the State Department $20?million for Internet freedom projects, a one-third decrease from last year. It awards $10?million in Internet freedom funds to the Broadcasting Board of Governors, which oversees Voice of America, Radio Free Europe and other government-funded media outlets.

Broadband: You'll Be Crippled Without It

[Commentary] Communications technologies have enormous consequences even though most of them go unrealized when those technologies are young. No one would have anticipated that Facebook or Twitter might one day figure in revolutions, just as no one could have anticipated that the telegraph would catalyze both the standardization of time keeping in the U.S. as well as the creation of national economic markets. We are now in the midst of a national debate — indeed, an international debate — around the impact of broadband networks. The current administration is intent on expanding access to broadband, especially in rural regions that have lacked fast access to the Internet. Critics ask exactly what broadband yields, and whether jolts of investment found in the stimulus are justified. What does it provide to rural regions that justify such large-scale investments? The simple answer is that rural communities will be economically crippled without broadband access. That’s the long and the short of it.

Verizon now has seven rural LTE partners, vindicating McAdams’ vision

When Verizon Wireless launched its rural LTE program early last year, the company’s then-CEO Lowell McAdam appeared to be closely involved in the program, potentially putting his own reputation on the line depending on the program’s success. McAdam has since moved into the Verizon COO position, where he is being groomed to replace Ivan Seidenberg as CEO of all of Verizon and where he undoubtedly has larger fish to fry than the rural LTE program. McAdam’s vision for the rural LTE program seems to be holding up to market realities. The latest company to join the Verizon Wireless LTE in Rural America program is S and R Communications, a joint venture of two rural Indiana wireline telcos. That brings the total number of participants in the program to seven. That’s a respectable attainment in the five months since the first program participant was announced, especially considering that Verizon is only seeking partners in areas where it does not have its own 3G infrastructure.

NCTA's Assey: Time to Rethink Regulations

At a Free State Foundation discussion on Federal Communications Commission reform, the National Cable & Telecommunications Association's James Assey said regulatory reform can be tough, but that the government needs to "disenthrall itself" from the way things have always been done.

A call for reform, he said, is not a criticism of the FCC, but instead is an opportunity to recognize that the world has changes since statutes were enacted and regulations adopted. He called it a celebration of the marketplace having become able to maximize consumer benefits. [All hail the marketplace!] Assey said it was important to have a "strong regulatory screen" that counsels against intervention, particularly where the marketplace is developing rapidly. In the lumpiness and bumpiness of progress and innovation," he said, "there is tremendous consumer benefits."

FCC Chief of Staff Edward Lazarus said it is certainly not status quo at the FCC and that it is not "remotely focused" on the things it was focused on in 1999 when then FCC Chairman Bill Kennard proposed FCC reforms. He said its agenda is forward-looking and "relentlessly focused" on broadband deployment and adoption. but he conceded the FCC's organizational chart is antiquated and does not "recognize fully" the conversion taking place. He said within the FCC, however, and in the way it operates, a lot has changed notwithstanding the categories visible from the outside.

FCC Reorganizes Bureaus

On April 14, the Federal Communications Commission released Orders reorganizing the Consumer and Government Affairs Bureau and the Public Safety and Homeland Security Bureau. The Orders were adopted in early February.

The Consumer and Government Affairs Bureau is creating a Web and Print Publishing Division which will be responsible for researching, writing, designing and developing electronic and print materials to communicate information on the policies, rulemakings, programs and plans of the FCC. Materials developed by the new division will provide consumers with significant information concerning telecommunications services and how those services are regulated, as well as information consumers need to make choices in a competitive marketplace. This Bureau "develops and administers the Commission's consumer and governmental affairs policies and initiatives to enhance the public's understanding of the Commission's work and to facilitate the Agency's relations with other governmental agencies and organizations." The Bureau's performed functions include: (i) advising and making recommendations to the Commission in matters regarding consumers and governmental affairs, including but not limited to policy development and coordination; and (ii) collaborating with, advising and assisting, the public, state, local and tribal governments, and other governmental agencies on consumer matters.

The Public Safety and Homeland Security Bureau reorganization will convert the Emergency Response and Interoperability Center (ERIC) into a division-level office within the Bureau and will rename the Bureau's current Policy Division, Communications Systems Analysis Division, and Public Communications Outreach and Operations Division to, respectively, the Policy and Licensing Division, the Cybersecurity and Communications Reliability Division, and the Operations and Emergency Management Division. This Bureau "develops, recommends, and administers policy goals, objectives, rules, regulations, programs and plans for the Commission to promote effective and reliable communications for public safety, homeland security, national security, emergency management and preparedness, disaster management and related activities." The Bureau's functions include: (i) advising and making recommendations to the Commission in matters pertaining to public safety and homeland security communications; and (ii) collaborating with, advising and assisting state, local and tribal governments as well as other governmental agencies and industry groups on emergency management and disaster management issues.