June 2011

TerreStar Said to Cancel Auction, Proceed With $1.38 Billion Sale to Dish

Dish Network’s $1.38 billion deal for TerreStar Networks is set to go to court for approval after no competing bids were made for TerreStar.

TerreStar plans to proceed with the Dish deal after no rival bids were made by a 5 p.m. deadline June 26. Dish, the second-largest U.S. satellite-TV provider, agreed to buy Reston, Virginia-based TerreStar out of bankruptcy protection, as it makes acquisitions to move beyond its traditional pay-television business. Dish’s agreement was subject to higher bids at an auction that had been scheduled for June 30. TerreStar, which provides wireless communications using a satellite network, filed for bankruptcy last year. It put itself up for sale after an earlier restructuring plan fell apart. It will seek a judge’s approval for the Dish sale at a July 7 hearing at the U.S. Bankruptcy Court in Manhattan.

Supplemental Request for Information Concerning Applications of AT&T and Deutsche Telekom AG

The Federal Communications Commission's Wireless Telecommunications Bureau has revised its initial request for billing and sales information from AT&T and T-Mobile and asked the companies to respond to the request by July 7, 2011. The request is to inform the FCC's review of AT&T's proposed acquisition of T-Mobile. In addition, the FCC is requesting information from Cellular South, Leap Wireless/Cricket, MetroPCS, Sprint Nextel, US Cellular, and Verizon Wireless.

FCC Chairman Sets August Target to Strike Fairness Doctrine and Other Outdated Regulations from Rulebooks

House Commerce Committee Chairman Fred Upton (R-MI) and Communications and Technology Subcommittee Chairman Greg Walden (R-OR) responded to the Federal Communications Commission’s agreement to eliminate the Fairness Doctrine and other outdated regulations by August.

FCC Chairman Genachowski initially agreed to strike the Fairness Doctrine from the Code of Federal Regulations in response to an inquiry made by Chairmen Upton and Walden on May 31.

“We are pleased that Chairman Genachowski has finally set a target for striking the Fairness Doctrine from the rulebooks once and for all,” said Chairmen Upton and Walden. “The rules are outdated, unnecessary, and needlessly endanger our sacred freedoms of speech and the press. The Commission says it plans to eliminate these obsolete rules through a streamlined, delegated-authority process, and we will continue to monitor the issue until they are fully repealed.”
In addition to the Fairness Doctrine, the FCC Chairman has agreed to review and eliminate antiquated regulations that hamper economic and job growth in line with President Obama’s Executive Order. In particular, Chairman Genachowski said that his staff already adheres to the directive that all major new rules be accompanied by an analysis of costs and benefits and is working with the Office of Information and Regulatory Affairs (OIRA) on best practices going forward.
“The committee appreciates Chairman Genachowski’s agreement that burdensome regulations—even those not subject to President Obama’s Executive Order—should be subject to a rigorous cost-benefit analysis before adoption,” said Upton and Walden. “We are also dedicated to assisting the FCC’s efforts to eliminate burdensome regulations in order to unleash private sector investment, spur growth, and create jobs for the American people. The committee urges the FCC to coordinate its plans to review and repeal job-crushing regulations with the Office of Information and Regulatory Affairs (OIRA).”

FCC Investigating KUSF Radio Station Sale

The Federal Communications Commission is reviewing the application seeking consent to transfer the assignment of KUSF (FM) from the University of San Francisco to Classical Public Radio Networks, LLC (CPRN).

As part of the transaction, the University of San Francisco and CPRN negotiated and executed a “Public Service Operating Agreement” (PSOA) pursuant to which CPRN provides programming to be broadcast on KUSF prior to approval and consummation of the assignment. The terms of the PSOA present issues involving the parties’ compliance with FCC rules and policies concerning the operation and control of the station and, so, the FCC has some questions to ask about the agreement.

Cybercrime Surveys Aren't Telling Us What We Need to Know

Cormac Herley, a principal researcher at Microsoft Research, embarked on a study of the methods used to calculate estimated losses to cybercrime and found them severely wanting.

Most of the statistics come from surveys in which respondents are asked to report whether they've been victims of a crime and how much they lost. "Surveys are hard," Herley says. His research revealed a number of reasons why surveys about cybercrime are particularly hard. Scientists have pretty good methods for surveying, say, voter intentions. In that case, you focus on getting a good representative sample. Inaccuracies matter, but a few one way or another aren't going to make much of a difference. Cybercrime is a whole different story. For one thing, cybercrime surveys are trying to measure a number: how much money was lost. In that case, individual responses can make a huge difference. A voting survey isn't thrown off by much if someone who actually plans to vote Democrat states an intention of voting Republican. But if a survey respondent who has lost $50,000 to cybercrime claims to have lost $500,000, any calculations based on that information will be wildly out of whack.

There are other problems. Any registered voter has useful information to report. But not everyone has a useful story to tell about cybercrime, which means that a small number of responses can make a huge difference. For example, in a 2006 survey conducted by Gartner Research, 128 out of 4,000 people claimed to have been victims. Herley calculates that 59 percent of losses came from the top 1 percent of respondents who had been victimized—in this case, a single person. He believes that such concerns make it impossible to trust data coming from most cybercrime surveys.

New Jersey Senate fails to block WNET plan, ending NJN

The New Jersey Senate failed to block Gov. Chris Christie’s plan to let New York's WNET/Channel 13 run New Jersey public television, signaling a big win for the Republican governor and the demise of New Jersey Network after 40 years of broadcasting.

Lawmakers were one vote short in their effort to reject the governor’s negotiated agreement with WNET, the nation’s flagship PBS station based in New York. A similar resolution overwhelmingly passed the New Jersey Assembly. The unsuccessful vote means Public Media NJ, a New Jersey incorporated subsidiary of WNET, will begin operating the new network, to be called NJTV, on July 1, 2011. The state’s contract with Public Media NJ mandates the new entity produce a nightly news show, cover elections and other important Trenton events, including the governor’s budget and State of the State addresses. The contract does not require Public Media establish a permanent New Jersey studio or place reporters around the state.

Mobile Web apps escape Apple's iron grip

Right now, all roads to the iPhone and iPad run through Apple. The only straightforward way for users to load apps onto their Apple devices is to download the software from Apple's curated and tightly controlled app store. Things are a little looser in the Android ecosystem, where Google lets almost anything into its Android Market and Amazon runs a rival Android Appstore, but gatekeepers still stand between app developers and their customers. That's about to change, thanks to an emerging Web standard called HTML5. The new standard supports video, offline reading, touch and gestural interaction -- all functions that, until recently, were only available for mobile devices on native apps.

Internet shutdown 'will never happen again,' says Egypt's IT chief

Yasser Elkady survived Egypt's revolution to remain CEO of the country's IT development arm. He is now in the U.S. traveling city to city to meet with IT companies to assure them that Egypt remains a good place to do business.

One message Elkady is delivering is a commitment from Egypt's provisional government that a decision to kill the Internet "will never happen again." Elkady says the government is rewriting its telecommunications law in response to the former government's decision to kill Internet access. The law won't necessarily preempt the government's ability from shutting down the Internet but will likely set many reviews and approval processes to ensure that a similar action does not happen again, he said.

On The Comedy-Rich Web, An Elite Group Of Dramas Break Through, These Are Their Stories

You can't swing a cat these days without hitting a comedy series on Vimeo, Daily Motion, or YouTube. But if you’re looking for drama, you'll mostly still find it on the boob tube.

In 2009, 50% of adults watched comedy online compared to 31% in 2007, according to a 2010 Pew Research report. Even mainstream stars are taking their act to the smaller screen, like former Friend Lisa Kudrow’s Web Therapy, the winner of this year’s Webby Award for Best Comedy: Long Form or Series. “For whatever reason, someone has put out to the web world that comedy is what works online,” Tina Cesa Ward, executive producer, writer and director of the widely-acclaimed web drama Anyone But Me, tells Fast Company. The show launched its third season’s finale June 21. “But what they fail to realize is that what works is great storytelling no matter what the genre.”

Dina Kaplan, a co-founder of blip.tv, says she thinks it may take one to two years for drama to really make a splash online. She offered her perspective on four keys to making online drama click: 1) Economics, 2) Niche programming, 3) Audience building, and 4) Enough time to produce multiple seasons.

Decrying ‘photocopy journalism’, news watchdog spotlights Denver TV station merger

The sprawling greater-Denver metro region is in news-media crisis. In the information age, when there seems to be more and more to know, there is less and less being reported by the diminishing number of local mainstream news outlets here. So it comes as little surprise that media watchdog organization FreePress this week is highlighting the Denver news market as a negative example for the nation.

The organization reports that, on top of shrinking newspaper reporting, the local TV news market is host to a “severe” form of the kind of sly consolidation that media corporations have been effecting across the country for nearly a decade. FreePress says this “covert consolidation,” where direct ownership is never transferred, is gaining momentum and that it skirts federal ownership laws and erodes market variety and competition. Over the last two years, Denver news stations Fox 31 KDVR and CW 2 KWGN have entered a “shared services” agreement through which station operations are merged. The stations share broadcast scripts and reporting, for example, the same way they share staffers, equipment, management personnel and studio and office space. “Just because the name on the letterhead hasn't changed, doesn't mean that the spirit of media ownership laws hasn't been violated,” FreePress Program Director Josh Stearns told the Colorado Independent. He said the owners of the stations are squatting on public airwave space that could be taken up by another company or organization, which would hire its own writers, reporters and producers to deliver an original and rival product to KDVR and the other stations in the market. Stearns believes the KDVR-KWGN agreement effectively tramples regulations meant to guard against media “duopolies,” where a single company owns two or more stations that serve the same community.