April 2011

SPECTRUM/WIRELESS

SPECTRUM AUCTION UPDATE
[SOURCE: AdWeek, AUTHOR: Katy Bachman]
The process of getting new spectrum out in the marketplace for wireless broadband, a key goal of the Obama Administration, is turning into a slog, raising doubts that any new spectrum will be released by the end of this legislative year. Hoping to jump-start Congress, the White House last week held a spectrum summit loaded with friendly technical and economic experts, along with the chief cheerleader of the initiative, Federal Communications Commission Chairman Julius Genachowski. At the summit, the White House released a letter from three Stanford University professors, signed by more than 110 economists, who said that spectrum auctions (which must be authorized by Congress) would increase spectrum efficiency and be a good move for the economy. The proceeds from an auction have been estimated at $28 billion. But proposals in Congress that would clear the way for the FCC to hold the auctions are moving slowly. It doesn't help that both chambers have been tied up in knots over budget issues that are unlikely to go away anytime soon. Congress needs to sort out a lot of moving pieces.
benton.org/node/55088 | AdWeek
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FCC: SEIZE SPECTRUM-FREEING OPPORTUNITY
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
According to testimony Julius Knapp, chief of the Federal Communications Commission's Office of Engineering & Technology, will deliver to the House Communications Subcommittee on April 12, the nation must "seize every opportunity to free up spectrum for mobile broadband." He plans to tell Congress the FCC supports ensuring a "healthy and robust" broadcasting industry. He says the incentive auctions that Congress will need to approve before broadcasters can be compensating for giving up spectrum will be voluntary and will not come at broadcasters' expense. But the FCC's definition of voluntary includes limiting the number of stations that would have to switch frequencies, and to "limit" loss of service. "While realignment of some broadcast stations will be necessary to ensure efficient use of the spectrum freed up in an incentive auction," the FCC concedes, "our proposal seeks to limit the number of stations that would need to switch frequencies as part of the realignment process." To some broadcaster that "need" already sounds like involuntary, but the FCC points out that even though they move frequencies, they can maintain the same dial position and would get paid for their troubles. "For those that do [need to switch], we would work to limit any loss of service to over-the-air television viewers and would fully reimburse them for any costs associated with relocating," says Knapp. "No stations would be required to move from the UHF band to the VHF band unless they freely chose to do so in exchange for a share of the auction proceeds," he added. That has been a concern of broadcasters given that the VHF band is not as effective for DTV transmissions as UHF, though the FCC has promised to try to improve VHF reception.
benton.org/node/55046 | Broadcasting&Cable
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SPECTRUM HEARING PREVIEW
[SOURCE: The Hill, AUTHOR: Sara Jerome]
Former-senator Slade Gorton, a member of the 9/11 Commission, will testify before the House Commerce Committee on April 12 that the D Block of airwaves should be auctioned to commercial providers in order to fund a broadband network for public safety agencies. That puts the former Republican senator from Washington at odds with the public safety community, the White House, and key senators, who would prefer to directly allocate those airwaves to emergency groups. According to his prepared testimony, Gorton will argue that funding, rather than the amount of airwaves, is what this issue hinges on. Strains on state and local government will make it more difficult for public safety agencies to receive funding to build out their networks, making an auction all the more important, according to Gorton.
benton.org/node/55096 | Hill, The | B&C
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BROADCASTERS TO WARN OF TV DISRUPTION
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
The Federal Communications Commission's rejiggering of television station spectrum allocations as part of its broadband spectrum reclamation plan could adversely affect a third or more of all TV stations, according to the prepared congressional testimony of the broadcasting representative on the first of what will be several hearings on the issue. Robert Good of WGAL-TV Lancaster (PA) -- who wears a lot of hats as assistant GM, director of operations and chief engineer for the station -- is representing broadcasters at the April 12 hearing on spectrum issues being held in the House Communications Subcommittee, which is headed by a former broadcaster, Rep Greg Walden (R-OR). Good plans to tell the legislators that they need to recognize that reallocation and repacking of spectrum would impose "significant financial costs" and result in "a material diminution of existing free, over-the-air television broadcast service." He says a second digital transition could create "unprecedented" viewer disruption, confusion and dissatisfaction." His message will be one of cooperation, however, with one big caveat. "Broadcasters do not oppose voluntary incentive auctions and the reallocation of broadcast spectrum, if, in fact, the auction and reallocation of broadcast spectrum is truly ‘voluntary,'" he says. But the big issue is whether repacking and "voluntary" are mutually exclusive. "For an auction process to be truly voluntary, it must be voluntary both for those stations that elect to participate in the auction and for those stations that elect to retain their licenses and continue delivering to their communities the full panoply of benefits of the digital transition," says Good. But if the repacking is required of any station that doesn't want it, and that repacking materially diminishes the service, that clearly fails the broadcasters' "voluntary" test. Good also paints a grim picture of potential loss from the combination of reducing broadcasters footprint now that the commission has allowed unlicensed devices to share the broadcast band.
benton.org/node/55047 | Broadcasting&Cable
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PUBLIC SAFETY WANTS D BLOCK SPECTRUM
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
Public safety organizations en masse plan to tell the House Communications Subcommittee that it is imperative they pass legislation that allocated the D block of spectrum to public safety. While one member of the 9/11 Commission, former Republican Senator Slade Gorton, is arguing for auctioning the block, they plan to remind the committee in their testimony, that the chairmen of the commission, Thomas Kean and Lee Hamilton, recently testified to Congress that that spectrum must be immediately allocated, saying further delay was "intolerable." In his testimony, NYPD Deputy Chief Charles Dowd says that "every major public safety organization in the country has explicitly rejected" the alternative of auctioning the spectrum and creating a public-private partnership with the commercial entity building out and maintaining the network, but turning it over to first responders in emergencies. That is the approach Gorton is pushing. But to allocate the spectrum, Congress has to change the DTV transition law, which required the D block of 700 MHz spectrum reclaimed from broadcasters already as part of the digital switch be auctioned, not allocated.
benton.org/node/55113 | Broadcasting&Cable
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FRITTS ON SPECTRUM ISSUES
[SOURCE: National Journal, AUTHOR: Juliana Gruenwald]
Former National Association of Broadcasters President Eddie Fritts said that a proposal to persuade broadcasters to voluntarily give up some of their spectrum is not necessarily a done deal. Fritts said the battle over the issue of incentive auctions could take more than a decade or more to sort out. The issue relates to a Federal Communications Commission proposal to entice broadcasters to voluntarily give up some spectrum in exchange for a share of proceeds from the auction of those airwaves. Fritts said he does not believe the proposal is a forgone conclusion. He said there is still a lot of negotiation that will have to play out at the FCC and in Congress, which will have to authorize the proposal. "We know there is a thirst for these frequencies, but it has to be done right," he said. He and others at the NAB show also disputed claims that there is a national spectrum shortage. He said while there is a shortage of spectrum in bigger markets such as the Northeast, Chicago and Los Angeles, "there is not a spectrum crisis across the nation." FCC Media Bureau Chief William Lake acknowledged this, saying we are facing a "spectrum crunch not crisis." But he warned it could turn into a crisis in coming years if regulators don't find more spectrum to meet the growing demand for wireless broadband.
benton.org/node/55109 | National Journal
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INTERNET/BROADBAND

FCC SEEKS COMMENT ON "NEED FOR SPEED" INFORMATION FOR CONSUMERS OF BROADBAND SERVICES
[SOURCE: Federal Communications Commission, AUTHOR: Press release]
The Federal Communications Commission's Consumer and Governmental Affairs Bureau (CGB) has issued a Public Notice asking for comments on the kinds of "need for speed" information that will be most useful to consumers in choosing their Internet service.
"The marketplace for broadband service is a confusing one for consumers," says CGB Bureau Chief Joel Gurin. "Most people don't understand megabits-per-second in the way they understand miles-per-gallon." Gurin notes that an FCC Survey last year found that 80 percent of people with broadband don't even know what speed they're getting from their service. "Broadband service providers recognize the problem, and have taken some good steps to educate consumers," says Gurin. "This Public Notice will provide a way for Internet service providers, the tech community, and the public to help develop clear guidelines that will help everyone understand how to get the service they need."
In the Public Notice, CGB notes that consumers may have very different needs for broadband service depending on what they use it for. Someone who uses the Web primarily for email, for example, may be well served by a smaller and less expensive service than an avid video viewer would need. Others, such as online gamers, may be especially concerned about factors like signal latency.
The Public Notice recognizes the importance of collecting input from a broad range of stakeholders on broadband speed and performance. The Bureau also says that this Notice builds on the work of a voluntary group of service providers and consumer groups that have met with the Commission to help guide the FCC's national testing of broadband speed and performance.
Comments are due May 26, 2011 and replies June 16, 2011.
benton.org/node/55041 | Federal Communications Commission | read the Public Notice
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NORTH CAROLINA BROADBAND FIGHT
[SOURCE: Salisbury Post, AUTHOR: Emily Ford]
Salisbury (NC)’s efforts to keep proposed state laws from affecting Fibrant got a boost. North Carolina Sen. Fletcher Hartsell, a Republican who represents Cabarrus County, introduced legislation that competes with the embattled House Bill 129, “Level Playing Field.” Salisbury fought House Bill 129. The cable industry backed it. Hartsell’s competing legislation, Senate Bill 511 or “Cities/Communications Service,” offers full exemption for Salisbury and other cities with networks up and running. His bill defines how government can operate broadband businesses. N.C. Sen. Buck Newton, a Republican representing Wilson, is one of the primary sponsors. Like Fibrant, Wilson’s Greenlight utility competes with private industry to sell Internet, cable and phone services. Although Salisbury and Wilson are exempt from House Bill 129, the proposed law would ban Salisbury from selling Fibrant to all but four other towns and prevent Wilson from selling Greenlight outside the city limits, which Greenlight’s director called a death knell.
benton.org/node/55085 | Salisbury Post
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RURAL AREAS WITHOUT BROADBAND
[SOURCE: Arkansas Democrat Gazette, AUTHOR: Wayne Bryan]
Going online and accessing the World Wide Web is not only a way to share the day with friends over Facebook or to send news and pictures to others across country instantly through e-mail. It is also an important means of commerce and business communication. Access to broadband, high-speed Internet use is necessary to compete in the future, state and regional officials say. “Small businesses and global corporations alike rely on broadband to connect them to the worldwide marketplace, train their work forces and facilitate the growth of their business,” Gov. Mike Beebe said last year in a statewide radio address. “Our future growth in Arkansas depends on how well we embrace the tools, skills and resources necessary to remain competitive in the 21st century.” Lamont Cornwell, director of the Benton Community Development Department, bluntly stated his opinion of the need for high-speed-Internet access. “It is a key for small business,” he said. “A small business or home business without high-speed Internet is dead. A lack of access can also be the death knell of larger businesses.” Use of high-speed Internet increased last year, according to Connect Arkansas, a private nonprofit organization promoting Internet access and created by the Connect Arkansas Broadband Act, signed by the governor in 2007. According to the organization, 24 percent of Arkansans subscribed to high-speed Internet in the past year, and 68 percent of the state’s residents have high-speed Internet in their home or workplace.
benton.org/node/55087 | Arkansas Democrat Gazette
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MORE NETWORK NEUTRALITY LAWSUITS TO COME
[SOURCE: Reuters, AUTHOR: Jasmin Melvin]
Public interest groups are keeping the option of lawsuits against the Federal Communications Commission on the table to fight for stronger Internet "neutrality" rules. "To go and say the FCC should have made stronger rules is something that my organization and others could be prepared to argue," said Matt Wood, associate director of the nonprofit public interest law firm Media Access Project. Network neutrality advocates speaking at the National Conference for Media Reform, hosted by the public interest group Free Press, were not discouraged by lawmakers' attempts to overturn the rules.
benton.org/node/55044 | Reuters
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NETWORK NEUTRALITY OVERRIDE
[SOURCE: Wall Street Journal, AUTHOR: Editorial staff]
[Commentary] The Obama Administration continues to ignore court decisions on Internet regulation and use agencies like the Federal Communications Commission to circumvent Congress. We're happy to see House Republicans vote to overrule this behavior. The resolution now moves to the Senate, where only 51 votes are needed. But President Obama has promised to veto the measure if it reaches his desk, and 67 Senate votes would be needed to override the veto. Whether enough Democrats would vote with the GOP to do that is an open question, though we wouldn't dismiss the possibility of some bipartisan support given the number of Senate Democrats up for re-election next year. The exercise is still useful in reminding the White House that the Constitution delegates lawmaking to Congress, not political appointees at the FCC. It also might have a chastening effect on the Administration, which has turned to rule-making agencies like the FCC and the Environmental Protection Agency to push an agenda that it can't get through Congress. President Obama insists that he's focused on economic growth and innovation. He could do that goal a favor by letting Congress override his politically-driven FCC.
benton.org/node/55114 | Wall Street Journal
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CYBERSECURITY

CYBERSECURITY UPDATE
[SOURCE: nextgov, AUTHOR: Aliya Sternstein]
The head of the military unit overseeing cyberspace reaffirmed that the US Cyber Command cannot monitor civilian networks, noting its powerlessness over systems outside the .mil domain might require congressional action. "I do not have the authority to look at what's going on in other government sectors, nor what would happen to critical infrastructures. That means that I can't stop [an assault on nonmilitary networks]," Cyber Command chief Gen. Keith Alexander said during remarks at a University of Rhode Island symposium on the increasing threat of cyberattacks. The division of responsibility between the Pentagon and the Homeland Security Department is at the center of a debate on cybersecurity legislation. DHS currently keeps an eye on vulnerabilities in the .gov and other civilian domains, while the Defense Department has visibility only into .mil networks. The White House has yet to weigh in on how to empower Defense to avert a potential cyberwar without running astray of civil rights and privacy laws. But Alexander offered hints about what the Pentagon might be pushing the Obama administration to consider.
benton.org/node/55090 | nextgov
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TELECOM

LEVEL 3 TO BUY GLOBAL CROSSING
[SOURCE: New York Times, AUTHOR: ]
Level 3 Communications will buy Global Crossing in a transaction worth $3 billion. The deal values Global Crossing at $23.04 a share — about 56 percent above the telecommunication company’s closing price on April 8. As part of the acquisition, Level 3 will also assume $1.1 billion of debt. The deal would combine the two companies’ fiber-optic networks over three continents, offering data and voice connections to more than 70 countries. The combined entity will create a company with revenue of $6.26 billion and earnings of $1.57 billion, after taking into account projected cost savings. Level 3 already has significant shareholder support. Singapore Technologies Telemedia, Global Crossing’s largest investor with a stake of about 60 percent, has agreed to vote in favor of the acquisition. Once the deal closes, ST Telemedia is to nominate directors to the board, relative to the size of its stake. Singapore Technologies Telemedia bought the stake in Global Crossing out of bankruptcy in 2003. Once a high-flying network operator, Global Crossing stumbled in the aftermath of the dot-com bust, filing for chapter 11 in early 2002.
benton.org/node/55052 | New York Times | Level 3 press release
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JOURNALISM

COPPS AT NCMR
[SOURCE: Federal Communications Commission, AUTHOR: FCC Commissioner Michael Copps]
Federal Communications Commission spoke at the National Conference for Media Reform saying he's "more worried than ever about the state of America's media and what it's doing to our country. We see investigative journalism on the endangered species list, hundreds of newsrooms shuttered, reporters fired by the thousands, walking the street looking for a job instead of a story. And it didn't start with the Internet because the process of media being high-jacked by the profit-at-all cost gang has been going on for decades. For the consolidated owners of radio and TV, the license to broadcast became a license to despoil. Visions of sugarplums danced in their heads-spectrum that belonged, they decided, to them rather than to the people. I don't indict all broadcasters in saying this because some managed to hold the speculators at bay-but it's harder than ever for the best in media and journalism to succeed in a world dominated by those who are in it for the quick buck and who are often not even traditional broadcasters-they're stations run by hedge funds, banking trusts and private equity firms. Yep, the folks who brought media and journalism down are the same folks who darned near brought the country down, too. Having hedge funds deliver the news is like delivering lettuce by way of a rabbit, as my old boss Senator Fritz Hollings would say. Left to their own devices, these absentee landlords would put local and independent programming on a starvation diet and feed us instead monotonous homogenized music and mindless infotainment masquerading as 'news.'" he concluded saying: "As for me, I pledge this: after my time at the Commission runs out later this year, I am staying on these issues; I am sticking with them; and I'm sticking with you to bring them home. These ten years it's your voices more than anyone's that ring true to my ear; your vision and passion that give direction to my work; your belief in media of, by and for the American people that makes me know-this must be done; this can be done; this will be done."
benton.org/node/55042 | Federal Communications Commission | Broadcasting&Cable | National Journal
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BUDGET

AN APPALACHIAN RADIO VOICE
[SOURCE: New York Times, AUTHOR: Katharine Seelye]
WMMT in Whitesburg (KY) is imperiled by the federal budget ax. As lawmakers seek to cut billions of dollars in federal spending, the Republican-controlled House voted in February to end financing for the Corporation for Public Broadcasting in 2013. While President Barack Obama wants to continue financing the corporation, the current budget turmoil has left its long-term fate uncertain. Juxtaposed against other hardships in Appalachia, the beaming of a radio signal might seem a luxury. But WMMT, which reaches across the mountains, coal fields and hollows of eastern Kentucky, southwestern Virginia and southern West Virginia, creates a connective tissue for its far-flung, geographically isolated listeners. It also offers respite from the daily grind. Like the redbud trees that are starting to burst forth in violet patches along the scrubby hillsides here, the sounds from the radio can be, if not essential, at least life-affirming. The Corporation for Public Broadcasting distributed $420 million last year to 1,300 public television and radio stations across the country. It gave WMMT, which is not affiliated with National Public Radio or a university, $86,000, or one third of the station’s $256,000 budget. Rural radio stations are far more dependent on federal money than their urban counterparts and more likely to go under if it is cut. Nearly two dozen rural stations, many of them on Indian reservations, rely on corporation financing for at least 50 percent of their revenue. (By contrast, grants from the corporation and other federal agencies supply about 2 percent of NPR’s overall revenues.) Rural stations face additional challenges. They need multiple transmitters to reach widely scattered areas. And their listeners are often on fixed incomes, with little or no discretionary money to donate, especially in a down economy.
benton.org/node/55118 | New York Times | NYT - WMMT's programming
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CONTENT

FOUR ENEMIES OF INDIE 'NET TV
[SOURCE: ars technica, AUTHOR: Matthew Lasar]
Any snapshot of the online independent video scene suggests an uncertain forecast. Here's four likely impediments to a full takeoff.
Data caps: Setting data ceilings is becoming an increasingly popular practice among ISPs.
Lack of a clear home theater standard: The Holy Grail for Internet TV is creating a viewing environment in which it looks and feels like the good old home pay/broadcast television that couch potatoes have enjoyed -- as opposed to the video that consumers watch on a desktop computer that's often dedicated to workplace activities.
Mergers and acquisitions: Companies don't even have to buy each other to engage in a wide range of potentially anti-competitive practices—developing partnerships that encourage consumers to watch pay TV rather than streaming independent content over the Internet. That's the gist of Comcast's TV Everywhere model. That's why the proposed merger of AT&T with T-Mobile is of such significance. The union doesn't just increase the size of AT&T as an ISP. It jumps its scale as an online content provider, which brings us to the question of "specialized" or "managed services."
Priority access: Until the FCC formally releases its open Internet rules, it's unclear how any of paid priority deals will actually be regulated, especially since the government will have to defend the provisions in court.
benton.org/node/55038 | Ars Technica
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INNOVATION AGENDA

HOW TO FIRE UP US INNOVATION
[SOURCE: Wall Street Journal, AUTHOR: Vinton Cerf]
[Commentary] Since 1990, U.S. scientists and engineers have invented the lithium-ion battery that powers all manner of devices from tablet computers to electric cars, developed GPS for civilian use to keep us on the right path to our destinations, and created both remote-controlled military aircraft (drones) to keep our soldiers safe overseas and robots that keep our floors clean at home. But how many among us know the names of the creators of the lithium-ion battery at Bell Laboratories, or the founder of iRobot Corp. and inventor of the Roomba robotic vacuum cleaner now sold around the world? By contrast, Japan, Spain, Norway, Sweden and many European countries shine a much brighter national spotlight on international science and technology breakthroughs.
So what's America to do? Young people should understand and experience the thrill of science and discovery. We need to help them do real science, not just read about it, through collaborative tools that help mentors and students to interact through programs such as the Institute of Electrical and Electronics Engineers' tryengineering.org. Children learn best by seeing and doing, not by memorizing. It's also important to reintroduce to the American culture a higher regard for engineers and scientists. The winners of our National Medals of Science and Technology deserve more public attention. Our successful scientists and engineers should be made more visible and their voices heard more often. Most important, however, is the need to refresh and invigorate interest in and regard for science and engineering in our youth. School and extracurricular opportunities for young people to work with experienced scientists and engineers should be expanded. Successful examples include the FIRST robotics program established by Dean Kamen (entrepreneur and inventor of the Segway PT), Google's recently launched global Science Fair, and the 50-year partnership between NASA and the National Science Teachers Association. By elevating interest in math and science, we will foster the innovation and ingenuity that will move this nation forward into a better future.
benton.org/node/55117 | Wall Street Journal
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GOV AND COMMUNICATIONS

GOOGLE CERTIFICATION
[SOURCE: Bloomberg, AUTHOR: Dina Bass]
Google's Internet-based software applications for government customers don't have a key security certification, contrary to the company’s claims in a lawsuit over a multimillion-dollar contract, the Department of Justice said in a December 2010 legal filing. In a filing unsealed April 8, the Justice Department said it “appears” that Google Apps for Government software doesn't have Federal Information Security Management Act certification, “notwithstanding Google’s representations to the public at large, its counsel, the GAO (Government Accountability Office) and this court.” A different version of Google Apps received the certification last year, the Justice Department wrote. Google sued the Interior Department in October, arguing that a planned $49.3 million contract to provide e-mail and online-collaboration services lacked sufficient competition and gave favorable treatment to Microsoft, which was set to be awarded the contract. The Justice Department comments were part of a government filing seeking a judgment in favor of the U.S. and dismissal of Google’s complaint.
benton.org/node/55094 | Bloomberg | Politico
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Daily Digest

Analysis

April 2011

Schiller: House GOP has thrust NPR into 'turmoil'

March 28-April 3: Libya Continues to Dominate the News

April 12, 2011 (Using Spectrum to Advance Public Safety, Promote Broadband, Create Jobs, and Reduce the Deficit)

An Appalachian Radio Voice Threatened From Afar

How to Fire Up US Innovation

Network Neutrality Override

Public Safety Groups: Allocate D Block

Frank: FCC Auction Plan Like 'Leno in Primetime'

Former NAB Chief Weighs In On Spectrum Issues

Keeping Eyes on Distracted Driving’s Toll