June 23, 2011 (Is the AT&T/T-Mobile Deal Illegal?)
BENTON'S COMMUNICATIONS-RELATED HEADLINES for THURSDAY, JUNE 23, 2011
LightSquared faces Congress today and Information Technology and Innovation Foundation celebrates innovation, of course http://benton.org/calendar/2011-06-23/
AT&T/T-MOBILE
Why The AT&T/T-Mobile Deal Is Illegal - analysis
What Does The AT&T/T-Mobile Merger Mean For You? - editorial
Letter to House Commerce Committee Chairman Upton and Ranking Member Waxman About AT&T Merger Claims
T-Mobile Dealers Start to Hang Up
AT&T/Verizon pact alarms backhaul providers
AT&T Turns to Airwaves to Sell Public on T-Mobile Deal
Six GLAAD board members resign amid AT&T flap
MORE ON SPECTRUM/WIRELESS
New LightSquared GPS plan faces attack, uncertainty
Is Apple Launching a Pre-emptive Strike Against Free Speech? - op-ed [links to web]
Consumers aren't clamoring for 4G and aren't sure what it is anyway [links to web]
Should Verizon Data Caps Scare Mobile Startups & Advertisers? [links to web]
CEA Seeks Online Signatories for Broadcast Spectrum Push [links to web]
INTERNET/BROADBAND
National Broadband Plans - research
Bringing Broadband to Rural America: Update to Report on a Rural Broadband Strategy - press release
Broadband gets a boost in new law signed by Hawaii Governor [links to web]
FCC REFORM
Recap: FCC Process Reform Hearing
House Commerce Committee Leaders Follow Up on FCC’s Plans to Identify Job-Crushing Regulations - press release
CYBERSECURITY
Pentagon gets cyberwar guidelines
White House agrees to let Congress codify some cybersecurity policies [links to web]
Feds Begin Sharing Secret Cyber-Threat Data With Private Companies [links to web]
Sen Menendez: New Cybersecurity Regulations Needed for Banks
Inside the Anonymous Army of 'Hacktivist' Attackers
COMMUNITY MEDIA/JOURNALISM
Creating a Public Square in a Challenging Media Age
Strengthening community information experiments at MIT's Center for Civic Media [links to web]
New Jersey lawmakers introduce bills to squash deal handing management of NJN over to WNE [links to web]
The State (and Future) of American Journalism - analysis [links to web]
Salon CEO to Take On News Job at Google [links to web]
ADVERTISING
In Their Prime: Broadcast Spot Costs Soar
Targeted Ads Come of Age in Cannes as Handset Tracking Pinpoints Customers [links to web]
AT&T Turns to Airwaves to Sell Public on T-Mobile Deal
OWNERSHIP
New Campaign Exposes Covert Consolidation in Newsrooms - press release
Google to panel: Page, Schmidt won't testify
Hulu puts itself up for sale [links to web]
Time Warner Cable, Viacom Pause Fight [links to web]
Retransmission Revenue Sharing Holding Back TV Station Sales - analysis [links to web]
HEALTH
Health IT Can Energize National Prevention Strategy
Taking the Pulse on Health IT Exports [links to web]
EDUCATION
Why Core Standards Must Embrace Media Literacy - op-ed [links to web]
OPEN GOVERNMENT
Oversight Committee approves federal transparency bill [links to web]
The death of open government - analysis
POLICYMAKERS/LOBBYING
FCC nomination fight stirs intrigue
Media Companies Spending Big on Lobbying
Government Jobs, Outside Income
FTC names Alison Oldale as deputy director for antitrust [links to web]
STORIES FROM ABROAD
Dutch Lawmakers Adopt Network Neutrality Law
Telstra to Get $11.6 Billion Compensation for Australian National Fiber Network Plan
Europe Wants U.S.-Style ‘Do Not Track’ Standard [links to web]
News Corp agrees BSkyB merger remedy [links to web]
Our salt risks draining into cyberspace - op-ed [links to web]
Polish tycoon in exclusive talks to buy Polkomtel [links to web]
AT&T/T-MOBILE
IS AT&T/T-MOBILE ILLEGAL?
[SOURCE: Public Knowledge, AUTHOR: Harold Feld]
[Commentary] There are several ways AT&T’s attempted purchase of T-Mobile could be illegal, the most obvious of which is if the Department of Justice (DoJ) concludes that the deal is “substantially likely to lessen competition” in violation of the antitrust laws. The next most likely way would be for the Federal Communications Commission to find that transfer of the licenses would be contrary to “the public interest, convenience, and necessity.” But there is a third way: AT&T’s acquisition of T-Mobile violates Section 314 of the Communications Act. This rather obscure and wordy section so rarely applies that, unless you are the kind of total telecom wonk without a life who actually reads through the entire Communications Act to see what’s in it, you've probably never heard of it. However, for reasons I shall explain below, I am fairly confident it ought to apply to this particular case and, if I am right, it creates an absolute prohibition to the FCC granting permission for Deutsche Telekom to transfer T-Mobile USA to AT&T. The question is: does the merger impact the actual transmission of common carrier traffic flowing into and out of the United States?
A number of foreign carriers, like Vodafone and Japan Communication, as well as a New Zealand ministry, and a few others (such as the Rural Telecommunications Group, MetroPCS/NTelos, and the International Users Group (INTUG)) have all squarely raised the international roaming question and protested that losing T-Mobile means going from 2 national GSM-based networks down to 1. Even if we adopt AT&T’s standard of only looking at local markets, ignoring national markets, and assuming all carriers are equal, you still have many local markets where you drop from 2 GSM-based carriers networks to just AT&T. And in the markets where you have another local GSM-based carrier, the number drops from 3 to 2. Why does that matter? Because GSM is the standard for almost every other country in the world. To do international roaming with most of the world, at least until we have broader LTE deployment here and in other countries (where LTE deployment is even slower than here), you need a GSM-based partner. So the presence of Sprint, Verizon, or any other CDMA-based carrier is irrelevant to the impact on international roaming. Post merger, in most markets, it’s either AT&T or no one.
benton.org/node/79226 | Public Knowledge
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WHAT DOES THE AT&T/T-MOBILE MERGER MEAN FOR YOU?
[SOURCE: National Hispanic Media Coalition, AUTHOR: Jessica Gonzalez]
[Commentary] If you are Latino, and you subscribe to T-Mobile cell phone service, you are in the norm. Nearly 25% of T-Mobile’s 34 million customers are Latino. Why are we such big fans of T-Mob? Probably because it is more affordable than all of the other national cell phone service providers. Or maybe because it has flexible plans that suit our diverse needs. Or perhaps because it has good customer service. For some time now T-Mob has been a maverick in the cellular market, inspiring a competitive spirit that keeps all of our phone bills lower than they would be without its presence, whether we connect through T-Mobile, AT&T, Verizon, Sprint, Cricket, Metro PCS, or some other provider.
Countless Latinos stand to lose their jobs as a result of AT&T’s plans to “reduce redundancies” between the two companies. In the past decade, both AT&T and T-Mobile have hired large numbers of Latinos to staff and manage their retail stores and to provide billingual customer service for billing and other issues. Now, AT&T is proposing that if it is allowed to buy T-Mobile that it would consolidate retail stores and billing systems, leading to layoffs and eliminating opportunities for new employees to get their feet in the door.
benton.org/node/79225 | National Hispanic Media Coalition
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AT&T MERGER CLAIMS
[SOURCE: Free Press, AUTHOR: Joel Kelsey]
Free Press sent a letter to House Commerce Committee Chairman Fred Upton (R-MI) and Ranking Member Henry Waxman (D-CA) disputing claims by AT&T that its proposed merger with T-Mobile would bring broadband to rural Americans more quickly. FP says AT&T's promises exaggerate any minimal benefit associated with the merger.
First, even if AT&T does not merge with T-Mobile, competitive pressure will force to AT&T to serve these areas with its own LTE network. According to public statements, Verizon’s LTE network will cover these areas in the next several years.2 If AT&T fails to offer the fastest speeds to consumers, there is no doubt that it will lose significant market share to Verizon. Thus, AT&T cannot afford to delay significantly its deployment of LTE.
Second, all of these areas will be served by AT&T’s “4G” HSPA+ service by the end of 2012. The HSPA+ service will delivers speeds exceeding 7 megabits per second. At that point, the incremental value of the transition to LTE will be negligible: real world speed tests indicate that the difference in downstream speed between 4G HSPA+ and 4G LTE is not particularly significant, and studies suggest that consumers may not perceive significant value in moving from one 4G technology to another.
Third, even if AT&T never builds out its LTE network to 97% of the population, Verizon’s network will reach those citizens, so they will still have the opportunity to subscribe to LTE service. Thus, the merger is clearly not necessary to bring next-generation broadband to all Americans.
benton.org/node/79275 | Free Press
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T-MOBILE DEALERS
[SOURCE: Wall Street Journal, AUTHOR: Anton Troinovski]
Regulators are still busy evaluating the plan to combine AT&T and T-Mobile, but consolidation in the U.S. mobile phone market has already begun. With the outlook for retail stores uncertain, some T-Mobile dealers are selling out or slicing back expansion plans, creating new challenges for T-Mobile as it tries to hang on to subscribers and dealing another blow to landlords already coping with a string of retail bankruptcies. So far, AT&T and T-Mobile haven't said how they would cut back their combined 9,200 stores. But AT&T executives have said that cost savings from rationalizing retail chains, advertising and back-office systems are a big part of the deal's rationale. AT&T also says it looks forward to working with T-Mobile's independent dealers "in a manner that is mutually beneficial." Wall Street analysts expect store consolidation, especially where AT&T and T-Mobile stores are close to each other. An analysis for The Wall Street Journal by real-estate research firm CoStar Group Inc., which tracks millions of commercial properties across the country, found that 41% of AT&T's stores have at least one T-Mobile store no more than a mile away. The overlap is greatest in the West. In Denver, Salt Lake City, Phoenix, Las Vegas and Los Angeles, the average distance from an AT&T wireless store to the nearest T-Mobile is around one mile, according to CoStar.
benton.org/node/79335 | Wall Street Journal
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BACKHAUL ALARMS
[SOURCE: Politico, AUTHOR: Eliza Krigman, Elizabeth Wasserman]
Wireless isn't the only market the nation’s two largest carriers, AT&T and Verizon, stand to dominate if the AT&T/T-Mobile deal is approved, smaller competitors say. Competition in the market for mobile backhaul services may also be threatened. Citing a new business arrangement between AT&T and Verizon, Lynn Refer, president and CEO of Telecom Transport Management, a small wireless backhaul provider, said that the future of the independent backhaul business may be at risk. Under the pact, Refer and others in the industry said, the two largest wireless companies have a reciprocal arrangement to provide infrastructure to connect each other’s wireless data traffic. Both AT&T and Verizon contended that they purchase backhaul from a number of providers.
benton.org/node/79334 | Politico
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AT&T ADS
[SOURCE: AdAge, AUTHOR: Kunur Patel]
The next wireless ad war is brewing over AT&T's bid to acquire T-Mobile for $39 billion. AT&T has launched its first ad touting the network improvements that would result from the deal. The recent TV spot claims: "The planned combination of AT&T and T-Mobile will deliver a next-generation mobile broadband experience to 55 million more Americans, many in small towns and rural communities." That refers to the swath of the country that would gain access to AT&T's high-speed 4G wireless Internet service if the now-No. 2 U.S. carrier owned T-Mobile's infrastructure. AT&T isn't the first carrier to use ads to sway public opinion on the acquisition, which is hotly contested, considering it would result in the new U.S. wireless-market leader. Four carriers now control 86.2% of the U.S. wireless market. If AT&T and T-Mobile become one, only three companies would control the vast majority of mobile service. Sprint, the most vocal opponent to the merger of two main competitors, has been running print ads for weeks against the deal. If AT&T is turning to ads to convince consumers and businesses that the deal makes sense, Sprint could very well be outspent. AT&T is the second-biggest US ad spender, with a 2010 budget of nearly $3 billion -- that's behind only Procter & Gamble. Compare that to Sprint's $1.4 billion in ad spending last year, which was down 6.7% from the year prior.
benton.org/node/79223 | AdAge
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GLADD BOARD MEMBERS RESIGN
[SOURCE: Politico, AUTHOR: Jennifer Martinez]
Six board members of the Gay & Lesbian Alliance Against Defamation have resigned amid the fallout over the organization's letter in support of AT&T’s proposed bid for wireless rival T-Mobile. Some board members were said to have resigned because of concerns that GLAAD failed to adhere to its conflict of interest standards and to protest GLAAD's failure to protect its president, Jarrett Barrios, who submitted his letter of resignation to the group amid a growing backlash in the gay blogosphere over the group's AT&T stance. GLAAD board member Gary Bitner confirmed that he had resigned. Five other board members — including Randi Weingarten, the president of the American Federation of Teachers — also have submitted their resignations. The six former board members submitted a joint statement that said they resigned from the organization's board for “various reasons,” but declined to comment on those reasons because they say "there's been too much unfair and false information spread about GLAAD" recently.
benton.org/node/79221 | Politico
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MORE ON SPECTRUM/WIRELESS
LIGHTSQUARED'S ALTERNATIVE
[SOURCE: IDG News Service, AUTHOR: Stephen Lawson]
The coast is not yet clear for LightSquared's hybrid satellite-LTE network despite the company's announcement that it has found a solution to interference with GPS. The startup's new proposal, in which it would step away from the frequencies that it said cause the most interference with GPS (Global Positioning System), still needs regulatory approval and hasn't even been presented to the Federal Communications Commission yet. Meanwhile, one of the company's harshest critics slammed the plan as "bizarre." The Coalition to Save Our GPS, which includes GPS vendors Garmin, Magellan and Trimble, as well as FedEx, Caterpiller, the Air Transport Association and others, dismissed LightSquared's claims of having solved the interference problem. "Confining its operation to the lower MSS band still interferes with many critical GPS receivers in addition to the precision receivers that even LightSquared concedes will be affected," the group said in a statement attributed to Jim Kirkland, vice president and general counsel of Trimble. "It is time for LightSquared to move out of the MSS band."
benton.org/node/79208 | IDG News Service
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INTERNET/BROADBAND
NATIONAL BROADBAND PLANS
[SOURCE: Organization for Economic Co-operation and Development, AUTHOR: ]
This report surveys national broadband plans (NBP) across the OECD area, providing an overview of common elements and goals in those plans. An annex to this report contains references and links to the plans.
OECD countries have previously-agreed key areas of broadband policies, which have been incorporated into NBPs, notably the 2004 Council Recommendation on Broadband and the 2008 Declaration of the Seoul Ministerial for the Future of the Internet Economy.
Policy makers have been updating NBPs, taking into account the effects of the global financial crisis (GFC). The communications industry has emerged relatively well from the GFC, partly due to the experience of the “dot-com bubble”. There has been continued growth in demand for broadband services, at a time when many other sectors experienced a decline. Some governments injected funds, either directly or through support for loans, to help the geographic expansion of broadband access networks, the upgrading of existing networks to higher speeds and also through measures to encourage adoption amongst social and economic groups with limited use of broadband. Governments assessed these interventions based on their costs, benefits and effects on markets.
The benefits of NBPs are expected to be extensive across economies and societies. This has required co-ordination amongst many ministries and agencies, in order to identify realistic targets and to ensure that processes are in place to monitor their achievement.
Given the high profile of broadband policies, headline goals are increasingly likely to be found in formal government programmes. At the same time, NBPs are, in most countries, adopted by an individual ministry or by the council of ministers, giving them less standing than legislation and often leaving them outside formal processes for assessment and review. This also provides flexibility for adjustments when these are required.
With more targets requiring adoption of high-speed broadband, rather than availability, broadband plans are increasingly found to contain a wider range of mechanisms, supplementing the traditional focus on economic interventions.
In many countries there are complex co-ordination mechanisms between the broadband activities of different levels of government: federal, state or provincial and municipal. There is also co-ordination between ministries, to ensure appropriate targets and outcomes for e-inclusion, e-government, e-health, plus contributions to the creation of jobs and to economic growth.
benton.org/node/79273 | Organization for Economic Co-operation and Development
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RURAL BROADBAND PLAN UPDATE
[SOURCE: Federal Communications Commission, AUTHOR: Press release]
The Department of Agriculture (USDA) joined the Federal Communication Commission (FCC) in releasing a report to Congress for placing new emphasis on the need to support the delivery of broadband to rural communities. The report, prepared by the FCC in consultation with USDA’s Rural Utilities Service (RUS), noted that broadband deployment and adoption remains a top priority for the Obama Administration through ongoing loan and grant programs administered by RUS and regulatory reform measures and tools set forth by the FCC. However, more needs to be done to fulfill the Administration’s objective for widespread deployment of affordable, quality broadband services to every community.
benton.org/node/79295 | Federal Communications Commission | read the report | Chairman Genachowski
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FCC REFORM
FCC PROCESS REFORM HEARING
[SOURCE: House of Representatives Commerce Committee, AUTHOR: ]
The House Commerce Subcommittee on Communications and Technology, chaired by Rep. Greg Walden (R-OR), discussed draft legislation to reform the Federal Communications Commission’s processes, codifying best practices to ensure consistency from issue to issue and from one commission to the next. The draft legislation reviewed by the subcommittee includes a series of sensible process reforms designed to improve the way the FCC operates.
The bill would:
Require the commission to conduct an economic analysis of industries that would be affected by the rules before initiating a new rule-making and provide certain minimum amounts of time for comments.
Prevent the commission from imposing burdens on consumers or industry unless it first identifies a market failure and consumer harm justifying the burden. If such rules are needed, the commission must perform a cost-benefit analysis and create performance measures for the rule’s continued evaluation.
Ensure any conditions imposed on transactions are tailored to transaction-specific harms and within the commission’s general rule-making authority.
Promote a renewed focus on the economic opportunities and challenges for the communications sector with a biennial report to Congress from the commission giving a big-picture view of what’s happening in the industry, the challenges for jobs and economic growth, and the Commission’s plans to address those issues
Enhance consistency and transparency in the commission's operations by requiring the FCC to establish its own internal procedures for:
adequate review and deliberation regarding pending orders,
publication of orders before open meetings,
initiation of items by bipartisan majorities, and
minimum public-comment periods.
Establish “shot clocks” so that parties know how quickly they can expect action in certain proceedings and provide a schedule for when reports would be released.
Empower the commission to improve the way it conducts business and operate more efficiently with sunshine reform, allowing three or more commissioners to meet for collaborative discussions so long as certain safeguards are in place.
Subcommittee Republicans indicated they want to move an FCC reform bill from the drawing board to the president's desk, while Democrats argued that the majority's version of reform is the wrong way to proceed, and one top legislator argued it was an attempt to change procedure because some Republicans did not like the conditions and commitments in the Comcast/NBCU deal.
While all of the witnesses at the hearing on a discussion draft of reforms agreed that the FCC needed reforming, there were differences over how well it was already instituting reforms on its own, and what Congress should do to speed that process along.
The National Association of Regulatory Utility Commissioners's Brad Ramsay endorsed sections of the draft bill, agreeing with the section requiring a minimum of 30 days for stakeholders to comment on a proposal and 30 days to reply to other comments.
Consumer Federation America's Mark Cooper said the draft "undermines the ability of the FCC to protect and promote the public interest," pointing to provisions that seek to replace the public interest standard in a merger review with a "narrowly tailored harm" standard. This, he said "will undermine the ability of the commission to deal with the emerging characteristics of the industry at the precise moment and in the specific context of the merger. Mergers create unique challenges to the public interest that are best dealt with in the merger review."
Former FCC Commissioner Kathleen Abernathy said that "there may be a time and place for timelines and shot clocks to encourage Commission action. But it is difficult to implement a uniform timeliness. ... For example, with particularly complex issues, the FCC must conduct a careful balancing act between moving expeditiously to adopt a timely decision and gathering data necessary to make the right decision."
Randolph May of the Free State Foundation, agreed with most of the reforms, but said that the bill should go further by helping clear out old regulations as well putting tougher standards on adopting new ones.
Kyle McSlarrow, president of Comcast/NBCU, Washington, praised a Republican draft of FCC reform proposals as an "excellent effort" to codify long-talked-about reforms.
Public Knowledge President Gigi Sohn said that her organization supports some measures in the bill, particularly those which allow more than two commissioners to meet under protected circumstances. But PK has deep concerns about provisions emphasizing market failure in the process of making a Commission decision and requirements to issue a notice of inquiry before proceeding to a rulemaking.
Matt Wood, policy director of the Free Press Action Fund, said: “This unnecessary bill would benefit giant corporations at the expense of consumers. The real heart of the legislation takes aim at gutting the FCC’s public interest standard, the foundation of the agency’s mission on behalf of the American people. Instead of using this as an opportunity to truly reform the FCC, to stop the revolving door or to halt industry capture, what Chairman Walden is selling as reform would tie the agency’s hands and prevent it from ensuring the public is represented on an even playing field with the biggest industry players. We urge members of Congress to focus on things that help all Americans, not just further the narrow interests of the few media giants that contribute the most in campaign donations.”
benton.org/node/79307 | House of Representatives Commerce Committee | B&C | AdWeek | The Hill - Waxman | B&C | Public Knowledge | Free Press
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COMMERCE LETTER TO FCC
[SOURCE: House of Representatives Commerce Committee, AUTHOR: Press release]
Leaders from the House Commerce Committee sent a follow-up letter to Office of Information and Regulatory Affairs Administrator Cass Sunstein to further discuss independent agencies’ cooperation with President Obama’s Executive Order to identify and eliminate burdensome regulations. Sunstein appeared before the Oversight and Investigations Subcommittee on June 3 and testified that, to date, only one independent agency had provided a plan. Even though the Executive Order does not bind independent agencies to participate, the Federal Communications Commission has also agreed to cooperate and eliminate additional antiquated regulations.
Committee Chairman Fred Upton (R-MI), Communications and Technology Subcommittee Chairman Greg Walden (R-OR), and Oversight and Investigations Subcommittee Chairman Cliff Stearns (R-FL) wrote to Sunstein, “In recent correspondence with the Federal Communications Commission, the committee has stressed the importance of eliminating burdensome regulations that no longer serve the public interest. A thorough review of FCC and other independent agency regulations and the repeal of outdated rules will unleash private sector investment, spur growth, and create jobs for the American people. While independent agencies like the FCC are not required to conduct a regulatory review under the terms of the executive order, you testified that you hoped they would voluntarily agree to do so."
The lawmakers ask for a response in two weeks.
benton.org/node/79305 | House of Representatives Commerce Committee | read the entire letter
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CYBERSECURITY
CYBERWAR GUIDELINES
[SOURCE: Associated Press, AUTHOR: Lolita Baldor]
President Barack Obama has signed executive orders that lay out how far military commanders around the globe can go in using cyberattacks and other computer-based operations against enemies and as part of routine espionage in other countries. The orders detail when the military must seek presidential approval for a specific cyber assault on an enemy and weave cyber capabilities into U.S. war fighting strategy, say defense officials and cyber security experts. Signed more than a month ago, the orders cap a two-year Pentagon effort to draft U.S. rules of the road for cyber warfare, and come as the U.S. begins to work with allies on global ground rules. The guidelines are much like those that govern the use of other weapons of war, from nuclear bombs to missiles to secret surveillance, the officials said. In a broad new strategy document, the Pentagon lays out some of the cyber capabilities the military may use during peacetime and conflict. They range from planting a computer virus to using cyberattacks to bring down an enemy's electrical grid or defense network. The Pentagon is expected to announce the entire strategy soon.
benton.org/node/79205 | Associated Press
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CYBERSECURITY REGULATIONS FOR BANKS
[SOURCE: IDG News Service, AUTHOR: Grant Gross]
Current regulations aren't enough to warn customers and protect them against data breaches at financial institutions, said Sen Robert Menendez (D-NJ) during a Senate Banking, Housing and Urban Affairs Committee hearing. He questioned why Citigroup took about a month to report a breach affecting more than 360,000 credit card accounts in North America. Citigroup, which confirmed the breach in early June, never notified Menendez's chief of staff that his account was compromised, Sen Menendez said. The staffer attempted to use his credit card and was declined, then called Citigroup to discover his account was hacked, Sen Menendez said. "It seems to me there is a fiduciary responsibility by the [financial] entity to proactively tell their customer that has happened," he said. Sen Menendez called for a national law requiring breached businesses to notify affected customers. More than 45 states have breach notification laws, making it difficult for businesses to comply with all of them, said Stuart Pratt, president and CEO of the Consumer Data Industry Association, a trade group representing data brokers. Sen Menendez also called on the Senate to pass his Cybersecurity Enhancement Act, which would allocate new money for cybersecurity research and scholarships. But Marc Rotenberg, president of the Electronic Privacy Information Center (EPIC), warned lawmakers to avoid preempting strong state laws with a weak federal data-breach notification law.
benton.org/node/79206 | IDG News Service
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HACKTIVISTS
[SOURCE: Wall Street Journal, AUTHOR: Cassell Bryan-Low, Siobhan Gorman]
What once was just righteous rabble-rousing by Anonymous in the name of Internet freedom has mutated into more menacing attacks, including by a splinter group of Anonymous called LulzSec, which is alleged to have moved beyond paralyzing websites to breaking in to steal data. The tumult over online agitators like Anonymous comes at a time when the world's computers are under unprecedented attack. Governments suspect each other of mounting cyber espionage and attacks on power grids and other infrastructure. Criminal gangs using sophisticated viruses cull credit-card and other sensitive data to steal from bank accounts. Now "hacktivists" who populate groups like Anonymous and LulzSec, mostly young males from their teens to early 30s, have also ignited increasing concern among computer experts over the security of corporate and government systems. Authorities in the U.K., Netherlands, Spain and Turkey have made more than 40 arrests of alleged Anonymous participants. In the U.S., the Federal Bureau of Investigation has conducted sweeping searches as part of a continuing probe into various attacks. On June 22, U.K. police charged a 19-year-old believed to have ties with both Anonymous and LulzSec, a group whose name is a blend of "lulz," or laughs, and "security." Anonymous and LulzSec pose a problem for law enforcement partly because their membership and operations are difficult to pin down. They are amorphous entities with scant leadership structure or formal process for making decisions.
benton.org/node/79331 | Wall Street Journal | Financial Times
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COMMUNITY MEDIA
POLICY FOR THE PUBLIC SQUARE
[SOURCE: American Enterprise Institute, AUTHOR: Norman Ornstein, John Fortier, Jennifer Marsico]
Much has changed in media and communications technologies over the past fifty years. Today we face the dual problems of an increasing gap in access to these technologies between the "haves" and "have nots" and fragmentation of the once-common set of facts that Americans shared through similar experiences with the media. This white paper lays out four major challenges that the current era poses and proposes ways to meet these challenges and boost civic participation.
Challenge One: Keeping Newspapers Alive Until They Are Well
Challenge Two: Universal Access and Adequate Spectrum
Challenge Three: Providing Quality Information to Citizens in Communities
Challenge Four: Creating a Vibrant Public Square
benton.org/node/79214 | American Enterprise Institute
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ADVERTISING
BROADCAST AD COSTS SOAR
[SOURCE: AdWeek, AUTHOR: Anthony Crupi]
Marketers looking to buy time on broadcast television have had to dig a little deeper, as the average cost of a prime-time spot is just shy of $110,000 a pop. According to analysis by New York independent media agency TargetCast tcm, the average price of a 30-second spot in the first quarter of 2011 was $108,956, up 5 percent from the year-ago period. The percentage increase translates to an average hike of $5,000 per ad. During the 2010-11 season, the most expensive buy on broadcast TV was Fox’s American Idol, which raked in approximately $475,000 per spot, according to media buyers. Close on Idol’s heels was NBC’s Sunday Night Football. The average 30-second spot in the Peacock’s NFL showcase cost around $425,000. Based on rates set in the year-ago upfront bazaar, ABC’s priciest program was Grey’s Anatomy ($225,000 a pop). CBS charged a premium for the Monday night comedy Two and a Half Men ($215,000), while The CW scared up its highest rate with The Vampire Diaries ($75,000).
benton.org/node/79297 | AdWeek
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OWNERSHIP
CHANGE THE CHANNELS
[SOURCE: Free Press, AUTHOR: Press release]
Change the Channels is a new campaign focused on exposing the new face of media consolidation. Across the country, hundreds of TV stations have quietly merged newsrooms, circumventing the Federal Communications Commission’s media ownership limits at the expense of independent, local journalism. “Change the Channels” features an interactive map highlighting each city impacted by covert consolidation and shared news operations. The map highlights eight communities that are home to some of the worst examples of covert consolidation, including Asheville, N.C.; Chicago; Denver; Honolulu; Peoria, Ill; San Antonio; San Francisco; and Syracuse, N.Y.
benton.org/node/79283 | Free Press
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GOOGLE TESTIMONY
[SOURCE: Politico, AUTHOR: Mike Zapler]
Apparently, Goggle refused a request by the Senate Judiciary antitrust subcommittee that CEO Larry Page or Executive Chairman Eric Schmidt appear to testify at an upcoming hearing on the tech giant’s competitive conduct. The answer came despite a veiled threat by the panel’s leading members, Chairman Herb Kohl (D-WI) and ranking member Mike Lee (R-Utah), to issue a subpoena to force one or the other Google executives to testify. Google offered to have Chief Legal Officer David Drummond testify instead. But the lawmakers said they “strongly prefer” Page or Schmidt because the hearing “will address fundamental questions of business operations rather than merely legal issues,”
benton.org/node/79288 | Politico
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HEALTH
HEALTH IT AND PREVENTION
[SOURCE: InformationWeek, AUTHOR: Nicole Lewis]
The Obama Administration has made several health IT-related recommendations in its National Prevention Strategy that call for expanded use of electronic health records (EHRs), social media tools, and mobile phone applications to help promote health and wellness. The strategy was developed by the National Prevention Council, which is composed of 17 federal agencies who consulted with outside experts and stakeholders. The 122-page document is a comprehensive plan to increase the number of Americans who are healthy at every stage of life. The plan cites several recommendations that entail the use of technology to meet its objectives.
benton.org/node/79279 | InformationWeek
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OPEN GOVERNMENT
THE DEATH OF OPEN GOVERNMENT
[SOURCE: Washington Post, AUTHOR: Vivek Wadhwa]
[Commentary] Vivek Kundra’s resignation last week from his post as the nation’s Chief Information Officer is an ominous event. Kundra’s goal was to set government data free via an expansive Internet effort called Data.gov, and encourage innovation with government-collected data through the Open Government Initiative. He had hoped to slash tens of billions of dollars from the government information technology (I.T.) budget by democratizing who and which types of companies can deliver I.T. solutions to the government. The most radical part of his program was to make public data available to entrepreneurs, allowing them to build new applications that solved problems for the government and their communities. The program was off to a great start, with hundreds of thousands of data sets becoming available, and entrepreneurs building thousands of innovative applications. Then the ill-considered race to slash the Federal deficit started. The Obama Administration agreed to cut e-government initiative funding from $35 million to $8 million. Never mind that Kundra’s programs had already saved taxpayers $3 billion over the past two years. Not surprisingly, Kundra resigned. Why preside over a portfolio of shuttered initiatives?
benton.org/node/79301 | Washington Post
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POLICYMAKERS/LOBBYING
FCC NOMINATIONS
[SOURCE: Politico, AUTHOR: Tony Romm, Kim Hart]
The behind-the-scenes parlor game to fill Democratic and Republican vacancies on the Federal Communications Commission is just beginning to heat up. Washington’s telecom circles are abuzz with speculation over who might get President Barack Obama’s two nods and how the Senate might proceed with their confirmations. It’s the beginning of a process that could lead to political tension in the Senate -- not only over the nominees themselves but over the policy direction of an agency that has repeatedly found itself in cross hairs over controversial issues, such as network neutrality.
On the Democratic side, the telecom industry has coalesced around Jessica Rosenworcel, a top telecom staffer for Chairman Jay Rockefeller on the Senate Commerce, Science, and Transportation Committee, as the leading candidate to fill the spot to be vacated by Commissioner Michael Copps. Copps’s term expires in just a few months.
Speculation still surrounds the vacancy created by the unexpected departure of Republican Commissioner Meredith Attwell Baker, who recently resigned from the commission to join Comcast. Ajit Pai, a partner at law firm Jenner & Block, who previously served under former FCC Chairman Kevin Martin, is so far the front-runner for the job. Senate Republican Leader Mitch McConnell has sent Pai’s name to the White House.
benton.org/node/79337 | Politico
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MEDIA OWNERSHIP LOBBYING
[SOURCE: AdWeek, AUTHOR: Katie Feola]
Big media companies are opening their wallets wider and wider to lobby the federal government on issues in which the companies have a vested interest.
The biggest spender in the first quarter of this year was Comcast, which spent a whopping $5.7 million in the first quarter of the year lobbying the government for the go-ahead to close its deal to acquire NBCUniversal. That's almost double the $3.1 million it spent on lobbying during the same period last year.
News Corp. spent $1.57 million on lobbying last quarter, up from $1.08 million year over year. Fox runs 27 TV stations in the United States and will be affected by the possible auctioning off of the stations’ unused spectrum.
Disney, home of 10 TV stations and their unused spectrum, came in not too far behind News Corp. It, too, spent some cash lobbying on the auction legislation. But Disney's total lobbying bill didn't go up much: It doled out $1.4 million in the first quarter of this year, compared to $1.25 million in the same period last year.
Viacom spent $1.1 million on first quarter lobbying efforts, up from $890,000. One issue that the home of MTV and VH1 threw its money behind was a review of the Comcast/NBCUniversal merger and its impact on independent programming.
benton.org/node/79218 | AdWeek
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GOVERNMENT JOBS, OUTSIDE INCOME
[SOURCE: Wall Street Journal, AUTHOR: Brody Mullins, Danny Yadron]
Sen. Harry Reid's top aide received $1.2 million from Comcast after he began working for the Senate majority leader, joining a long list of congressional staffers who have collected money from past employers after starting on Capitol Hill. The payment to Reid's aide, David Krone, stemmed from an unusual promise Comcast made when he quit his job as its senior vice president of corporate affairs. Not long before he was offered the Washington job, the cable company agreed to buy his apartment for the price he paid a year earlier, protecting him against a substantial loss. Krone had purchased the condo when he moved to Philadelphia to work for the company. Krone earned about $165,000 working for Sen Reid (D-NV) in 2009, public records indicate. In 2008, he earned nearly $3 million from Comcast, not including the $1.2 million condo payment he received after starting with Sen. Reid. There is no evidence that Sen Reid has done anything in particular to benefit Comcast since Krone came to work for him.
benton.org/node/79286 | Wall Street Journal
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STORIES FROM ABROAD
NET NEUTRALITY LAW
[SOURCE: New York Times, AUTHOR: Kevin O'Brien]
The Netherlands became the first country in Europe, and only the second in the world, to enshrine the concept of network neutrality into national law by banning its mobile telephone operators from blocking or charging consumers extra for using Internet-based communications services like Skype or WhatsApp, a free text service. The measure, which was adopted with a broad majority in the lower house of the Dutch Parliament, the Tweede Kamer, will prevent KPN, the Dutch telecommunications market leader, and the Dutch units of Vodafone and T-Mobile, from blocking or charging for Internet services. Its sponsors said that the measure would pass a pro-forma review in the Dutch Senate without hitches. Analysts said that the legal restrictions imposed in the Netherlands could shape Europe’s broader, evolving debate over network neutrality, pushing more countries on the Continent to limit operators from acting as self-appointed toll collectors of the mobile Internet.
benton.org/node/79300 | New York Times
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TELSTRA AND AUSTRALIA'S BROADBAND PLAN
[SOURCE: Bloomberg, AUTHOR: Gemma Daley, Robert Fenner]
Telstra, Australia’s biggest phone company, agreed to hand over its fixed-line assets in exchange for A$11 billion ($11.6 billion) to clear the way for the rollout of a government-owned high speed Internet network. NBN Co., the government-owned national broadband network builder, will lease access to carriers on the fiber system to be completed in 2018 with Telstra to receive its compensation over three decades, the Melbourne-based carrier said. Singapore Telecommunications Ltd. (ST), owner of second-ranked Optus, will get about A$800 million under a similar agreement. Telstra, which also rents its network to other carriers, will give up its slower copper-wire assets to focus on selling voice and Internet services over the NBN system. The agreement, signed 21 months after the government first demanded Telstra be broken up, enables Prime Minister Julia Gillard to build the A$36 billion network that helped her win the support of independent lawmakers in last year’s election.
benton.org/node/79320 | Bloomberg | Reuters
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