June 2011

One Out of Every Six Minutes Online Is Spent Social Networking

Following recent reports of a substantial drop in Facebook users -- about 6 million people in the U.S. have supposedly quit the site -- comScore’s latest findings prove that social networking is, in fact, more popular than ever.

According to the Web analytics firm, over the past five years, the amount of time that people spend on social networks has doubled. In 2007, social networking represented about 1 out of every 12 minutes spent online. Now, that’s risen to 1 out of every 6 minutes. How’s that for time well spent? Much of this trend can be attributed to the continued success of Facebook, which is the fourth-largest U.S. Web property in audience size and now reaches 73 percent of the total U.S. Internet population each month. At this point, a constant increase in users probably won't be sustainable, says comScore, so Facebook’s future U.S. growth is likely to come from users’ increasing their amount of time spent on the site -- which seems to be working so far. According to one stat, Facebook’s average U.S. visitor engagement has grown from 4.6 hours to 6.3 hours per month over the past year.

The Insanity That Is The Universal Service Fund

[Commentary] The Universal Service Fund holds so much promise to be a vehicle for good for rural America. But we can't ignore the reality that to date it has not been realizing its full potential. Those of us who believe in rural America and the promise of broadband and fiber need to make our voices heard. We must let our policymakers know that the status quo isn't good enough. That the evidence speaks for itself that USF has been underwhelming at best and a failure on many fronts. Now as we begin to debate what to do with USF next, we need to shift attention to how do we build up our nation's 21st century communications infrastructure and away from how do we continue subsidizing the 20th century. If we can't do that, then USF will continue its insanity, our tax dollars will continue to be squandered, and rural America will continue to suffer.

Cable operators to Netflix: Bring it on

Cable operators say they are happy to compete with Netflix. But they think the high cost of sports and live programming will ultimately keep Netflix out of the game.

During a panel discussion at the National Cable & Telecommunications Association's Cable Show, Robert Marcus, COO of Time Warner Cable, and Michael Wilner, CEO of Insight Communications, a cable operator based in Kentucky, said that without live programming and sports Netflix and other over-the-top video providers will never be able to compete head to head with them. "We are more than happy to take all competition," he said. "But if they want to pay the price for the rights to sports and other live programming, they will have to charge more to make up for what they spend on those rights."

Comcast shows off 1 Gbps broadband

Comcast CEO Brian Roberts showed off the next-generation cable broadband technology, which could deliver data at over 1 gigabit per second. Roberts showed a live 11-mile cable network and downloaded 23 episodes of 30 Rock in 1 minutes and 39 seconds, touting it as the future of wireline broadband. He added that broadband — along with Wi-Fi — is the future, as multiple devices would need a lot more bandwidth to watch television.

Google denies special deal for President Barack Obama

Google denied that it gave President Barack Obama’s re-election campaign special access to a new advertising program, something a sales representative from the search and advertising giant had claimed in an email to customers.

The new ad program would charge clients for every e-mail address (or other piece of user data) they collect. The program is attractive to campaigns eager for that information, so when a staffer at the National Republican Senatorial Committee saw what appeared to be an Obama ad built on this technology on the RealClearPolitics website last month, she e-mailed a Google sales rep to ask about creating a similar ad campaign for Republicans. The saleswoman, Sirene Abou-Chakra, replied by suggesting that the Obama campaign had a special deal. “This is a pre-alpha product that is being released to a select few clients,” she wrote, referring to the first stage of a product’s roll-out. “I'd be happy to get you into the beta if you’re interested.” A similar e-mail went out to at least one other Republican digital media firm, a Republican source said. “It certainly raises some red flags that the Obama campaign appears to have been given special access to a new online advertising product,” said NRSC communications director Brian Walsh.

MagicJack not completing calls to rural areas, letter to FCC contends

Now that the Federal Communications Commission is considering requiring VoIP providers to pay inter-carrier compensation and taking steps to curtail phantom traffic, at least one VoIP provider has found a different way to avoid paying terminating access charges to carriers serving rural customers.

As an exhibit filed with a letter to the FCC from several rural carrier associations reveals, VoIP provider VocalTec, operator of the low-cost magicJack VoIP service, is simply refusing to complete calls to some carriers -- and the evidence suggests that those incomplete calls are to rural carriers. According to the documentation provided by the rural carrier groups, one of the questions included in magicJack’s frequently asked questions is: “Why won't some of my calls complete?” The answer? “Some restrictions in cost prohibitive areas may apply.” This is likely a reference to the high per-minute termination charges in some rural areas. These charges have long been used to help cover the costs of providing service in areas that are costly to serve, but it has come under fire as low-cost VoIP services have gained in popularity. The FCC is planning to eventually phase out per-minute termination charges, but that is unlikely to happen for a few years.

Fed CIO Kundra Leaving for Harvard

Vivek Kundra, the nation’s first federal Chief Information Officer (CIO) announced that later this summer he will be leaving the post for a fellowship at Harvard University.

When he began at the White House, Kundra brought with him the promise of good ideas and a hard-charging style focused on getting things done, necessary qualities to tackle the difficult issues facing Federal IT – an aging infrastructure with rising operating costs, too many major projects failing to deliver, and increasing vulnerability to outside threats. Two and a half years after joining the Administration, Vivek has delivered on that promise. He has cracked down on wasteful IT spending, saved $3 billion in taxpayer dollars; moved the government to the cloud; strengthened the cybersecurity posture of the nation while making it more open, transparent, and participatory. His work has been replicated across the world from 16 countries that have deployed the data.gov model to tap into the ingenuity of their people to multiple countries that have deployed the IT dashboard to save money.

Meeting the cybersecurity challenge

Cybersecurity -- the protection of valuable intellectual property and business information in digital form against theft and misuse -- is an increasingly critical management issue.

The US government has identified cybersecurity as “one of the most serious economic and national security challenges we face as a nation.” Companies must now fend off ever-present cyberattacks -- the threat of cybercriminals or even disgruntled employees releasing sensitive information, taking intellectual property to competitors, or engaging in online fraud. While sophisticated companies have recently endured highly public breaches to their technology environments, many incidents go unreported. Indeed, businesses are not eager to advertise that they have had to “pay ransom” to cybercriminals or to describe the vulnerabilities that the attack exposed. Given the increasing pace and complexity of the threats, corporations must adopt approaches to cybersecurity that will require much more engagement from the CEO and other senior executives to protect critical business information without constraining innovation and growth.

Brookings Institution
Tuesday, June 28, 2011
10:00 AM to 12:00 PM
http://www.brookings.edu/events/2011/0628_social_media.aspx

The 2008 campaign represented a textbook example of digital mobilization and impact. Using social networking outreach tools such as Facebook, YouTube, and Twitter, a number of Democratic and Republican candidates raised money, identified supporters, and built unprecedented virtual electoral coalitions. Despite social networking’s track record for generating democratic engagement, it has proven difficult to sustain political interest and activism online over time and move electronic engagement from campaigns to governance. Faced with a polarized political environment and arcane debates over legislative provisions, many Americans have opted out of the online civic participation which was so prolific during the 2008 election cycle.

On June 28, the Center for Technology Innovation at Brookings will convene a discussion forum focused on using social networking and digital tools to reinvigorate democracy and extend electronic engagement from campaigns and grassroots-activism to governance. Participants will discuss strategies for voter empowerment, citizen engagement, and governance transformation. Questions to be examined will include: What tools does government use to engage the American people, and how have these engagement strategies evolved? How does social networking improve participation and collaboration in governance? What does current research say? What role should industry actors such as Facebook and Twitter play in encouraging online civic participation?
After the program, panelists will take audience questions.

Participants may live Tweet using #CTIcivic as the event hashtag.

Welcoming Remarks and Moderator
Darrell M. West
Vice President and Director, Governance Studies

Panelists
Mindy Finn
Partner
Engage

Diana Owen
Associate Professor of Political Science, Director of American Studies
Georgetown University

Macon Phillips
Special Assistant to the President and Director of Digital Strategy
The White House

Lee Rainie
Director
Pew Internet & American Life Project



June 16, 2012 (Chaotic Vancouver)

Canadians. Rioting. Go figure. http://bit.ly/jd7h9V

BENTON'S COMMUNICATIONS-RELATED HEADLINES for THURSDAY, JUNE 16, 2011

Cloud Computing and Computers for Youth on today's agenda http://benton.org/calendar/2011-06-16/


MEDIA OWNERSHIP
   FCC Releases Media Ownership Studies; Seeks Public Review - public notice
   FCC Finally Making Some Progress on Media Ownership Rules
   Google unshaken by antitrust scrutiny

JOURNALISM
   Keeping the Public Interest Bargain Alive - speech
   Debating Disclosure and Transparency in the FCC Future of Media Report - analysis
   10 things the US government can do to help digital news entrepreneurs - editorial
   Future of media: Community is your new business model - analysis

CYBERSECURITY/PRIVACY
   House Commerce, Manufacturing, and Trade Subcommittee Discusses Legislation to Protect Americans from Data Theft - press release
   Sens Pryor, Rockefeller Introduce Legislation to Protect Consumers' Personal Information and Prevent Identity Theft - press release
   Sens Franken, Blumenthal introduce mobile privacy bill
   FTC: Ceridian, Lookout Services Failed to Protect Consumers’ Personal Information - press release [links to web]

INTERNET/BROADBAND
   House GOP moves to cut network neutrality funding
   House boosts budget for broadband satellites [links to web]
   President Obama highlights broadband investments in Puerto Rico [links to web]
   FCC's Genachowski: Broadband Adoption 'Just Not Good Enough'
   Wisconsin Budget Debate and Broadband
   Broadband Adventures in Wunderland: The (Expensive) Myth of Competition - op-ed [links to web]
   The National Broadband Map’s Rural Fairy Tale - op-ed [links to web]
   State lawmakers approve online sales tax

TELEVISION
   Netflix Helps People Cut Cable Cord, Report Says
   Broadcast still likely to rule in 2012, but advanced ads could make cable attractive [links to web]
   Nielsen: Two Thirds of All TV Homes Now Have an HD Set [links to web]
   The 8 most provocative things heard at The Cable Show [links to web]

WIRELESS/SPECTRUM
   States weigh in on AT&T-T-Mobile merger
   An AT&T/T-Mobile Merger Will Not Lower Prices - analysis
   AT&T T-Mobile deal gets support from Georgia leaders but not consumers [links to web]
   LightSquared Asks FCC To Extend Deadline
   see also: Falcone's Venture Runs Into Static [links to web]
   Unaffordable Roaming - editorial
   Why is Apple offering an unlocked iPhone 4? - analysis [links to web]
   Lookout Inks Deal With Sprint, Launches Safe Browsing Service [links to web]

CONTENT
   Social networking sites and our lives - research
   See also: Social Media Help Keep the Door Open to Sustained Dissent Inside Saudi Arabia [links to web]
   TechFreedom Panel Criticizes Search Engine Bias Claims [links to web]
   In Run-Up To Kindle Lending Program, Libraries Beef Up E-Book Offerings [links to web]
   Another Oliver Twist: British Library Builds 60,000-Book iPad App [links to web]
   If Google Maps Explores China, Will It Mean More Freedom Or Less? [links to web]

POLICYMAKERS
   Members of Congress Investing Big in Media Companies
   Irving To Leave HP [links to web]

MORE ONLINE
   Bringing and Keeping Business Investment in America - press release [links to web]
   White House Event Amps Up Grid Modernization Efforts - press release [links to web]
   Executive feds are smartphone savvy, but lag on tablets [links to web]

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MEDIA OWNERSHIP

FCC RELEASES MEDIA OWNERSHIP STUDIES
[SOURCE: Federal Communications Commission, AUTHOR: ]
The Federal Communications Commission released five research studies on media ownership. The five studies are intended to inform the FCC’s quadrennial review of its media ownership rules (MB Docket No. 09-182). The five studies were conducted by outside researchers and examine a range of issues that impact diversity, competition, and localism, three important policy goals of the media ownership rules.
The FCC will seek formal comment on all eleven studies within the context of the Notice of Proposed Rulemaking in this proceeding and requests that all comments on the studies be submitted to the FCC for consideration at that time. The FCC is releasing the studies earlier, in order to provide parties additional time to review the results and the underlying data.
In addition, the FCC's Media Bureau is releasing a Protective Order, which establishes procedures for public review of the proprietary portions of data sets created by the authors of the studies. A number of the authors of the media ownership studies created data sets using proprietary information licensed to the author or the FCC. The data sets, as well as related materials necessary to replicate the studies’ analyses, including market data provided to the authors of the studies as “Government Furnished Information,” will be made available for review and inspection by interested parties consistent with procedures contained in the Protective Order. Prior to reviewing the proprietary data sets, parties are required to sign and submit the Declaration, which was released as part of the Protective Order. Parties also may be able to obtain licenses from licensors of the underlying proprietary data to evaluate the results of the studies and/or to develop other studies that will contribute to the record in this proceeding.
For many of the studies, the data sets that the FCC will make available are only readable by, and require the user to be familiar with, specific statistical software programs (namely, Gauss, R, and Stata). The FCC has a limited number of on-site computing resources available for use by members of the public. Therefore we recommend that interested parties call in advance to schedule use of the Commission’s facilities. Persons with a scheduled appointment will be given priority over walk-in users.
Media Ownership Study 3, How the Ownership Structure of Media Markets affects Civic Engagement and Political Knowledge, 2006-2008, by Lynn Vavreck, Simon Jackman, and Jeffrey B. Lewis: This report investigates whether the structure of media ownership in television markets affects the levels of civic/political engagement and political information of people living within those markets.
Media Ownership Study 5, Station Ownership and the Provision and Consumption of Radio News, by Joel Waldfogel: This study aims to provide some evidence on the availability of radio news, along with evidence about the relationship between station ownership and the availability of news programming.
Media Ownership Study 6, Less of the Same: The Lack of Local News on the Internet, by Matthew Hindman: For all of the discussion of local news online, there has been little systematic evidence about the local news environment on the Web. Arguments have been waged mostly with anecdotes and assumptions instead of comprehensive data. This study aims to change that.
Media Ownership Study 7, Radio Station Ownership Structure and the Provision of Programming to Minority Audiences: Evidence from 2005-2009, by Joel Waldfogel: This study aims to assess recent evidence on the relationship between ownership structure and the provision of radio programming to minority (African-American and Hispanic) audiences.
Media Ownership Study 9, A Theoretical Analysis of the Impact of Local Market Structure on the Range of Viewpoints Supplied, by Isabelle Brocas, Juan D. Carrillo, and Simon Wilkie: This study introduces a model of media market competition to examine the impact of ownership structure on the performance of the market in terms of informational efficiency and viewpoint diversity
benton.org/node/77866 | Federal Communications Commission | 2010 Review of Media Ownership Rules | Protective Order | Study 3 | Study 5 | Study 5 peer review | Study 6 | Response to Study 6 peer review | Study 7 | Study 7 peer review | Study 9 | Study 3 peer review | Study 6 peer review | B&C
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MEDIA OWNERSHIP REVIEW
[SOURCE: AdWeek, AUTHOR: Katy Bachman]
With all the focus on broadband at the Federal Communications Commission, it's easy to forget that the regulator's quadrennial review of its media ownership rules, originally scheduled for 2010, is overdue. Some progress was made, though, as the FCC released five of the nine studies it ordered as part of the review of the current rules. The commission is still waiting for an additional four studies and will also conduct two studies internally. Once comments are in for all the studies, it will open up the process and decide whether to change the rules or keep them as is. The big question, though, is when that will happen, and whether the FCC will finally be able to break through the morass that its media ownership rules have become over the past decade. Some of the rules, such as one that puts limits on the ability of companies to own both a newspaper and a broadcast outlet in the same market, are still tied up in the courts. It won't surprise anyone in Washington if it takes until fall, or even longer, before the FCC is able to review all the studies, make a decision, and open up the rule-making process.
benton.org/node/77922 | AdWeek
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GOOGLE AND ANTITRUST
[SOURCE: Politico, AUTHOR: Mike Zapler]
If Google is feeling the heat of antitrust regulators, the tech giant isn't publicly breaking a sweat. Fresh off the Department of Justice’s months-long review of Google’s purchase of travel software firm ITA, with the Federal Trade Commission bearing down with a wide-ranging probe of its business practices, the tech giant invited yet another antitrust review Monday by announcing its plan to buy display ad firm Admeld for a reported $400 million. It shows that the company isn't afraid of sizable acquisitions, even if it means more wrangling with regulators. Dealing with Justice and FTC appears to be just another cost of doing business. “Google is going to do everything it possibly can before it’s constrained,” said Gary Reback, a prominent Silicon Valley antitrust attorney who has represented parties at odds with Google. On the surface, though, Google may have a strong case that the Admeld deal poses little competitive threat, one industry expert said. Unlike Web search or mobile search advertising, which Google clearly dominates, the display ad market is much more splintered.
benton.org/node/77992 | Politico
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JOURNALISM

KEEPING THE PUBLIC INTEREST BARGAIN ALIVE
[SOURCE: Federal Communications Commission, AUTHOR: FCC Commissioner Michael Copps]
Speaking at the New America Foundation's "Conversation On the Future of the Media," Federal Communications Commission member Michael Copps said that the FCC's recently-released "The Information Needs of Communities" revealed cracks and chasms running through the landscape by documenting, in particular, shortfalls in the production of local accountability journalism. The question before us now, he said, is "what do we do about it?" One school of thought on the role of government says let's leave this important task up to the free market and deregulate entities that serve this purpose. The second school maintains that there is a role for government in general and the Federal Communications Commission in particular: that role is to ensure that the public’s spectrum is put to the public purpose of informing democracy’s dialogue. Under this theory, a license to broadcast is a privilege, not a God-given right, and the privilege of keeping that license depends upon the caliber of trusteeship a station delivers. He outlined measures he believes the FCC can and should take:
adopting real public interest obligations for broadcasters,
complete the FCC's localism proceeding,
finalize disclosure rules,
adopt recommendations of the FCC's Diversity Advisory Committee, and
hold public hearings around the country encouraging the American people to say what they think about the news and information they are receiving
benton.org/node/77966 | Federal Communications Commission | The Hill
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DISCLOSURE AND TRANSPARENCY
[SOURCE: SaveTheNews.org, AUTHOR: Josh Stearns]
[Commentary] The recently released Federal Communications Commission report on “The Information Needs of Communities” focuses a good deal of attention on increasing transparency by government and by broadcasters, who get to use the public airwaves for free. Indeed, the FCC recommended that “disclosure should be a major pillar of FCC media policy.” The FCC has long recognized that providing communities with locally responsive programming is a “bedrock” obligation of every broadcaster. But to hold broadcasters accountable to this promise both citizens and the FCC need data about how broadcasters claim they are serving local communities. It’s clear from the report that the FCC recognizes that information equals power, and that citizens need more information to judge whether broadcasters are meeting their obligations to serve the public good. Why, then, did we blast the FCC’s recommendations around “enhanced disclosure”? Unfortunately, when it comes to this essential information we worry that the report has taken us one step forward and two steps back.
benton.org/node/77935 | SaveTheNews.org
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10 THINGS GOV CAN DO
[SOURCE: Online Journalism Review, AUTHOR: Robert Niles]
[Commentary] Let's not dismiss too quickly the federal government's potential role in promoting good news coverage. Here are 10 steps that the US government could take that would significantly help entrepreneurs trying expand the news coverage of their local communities. And none of them involve direct subsidies or payments to the news industry. 1) Protect network neutrality. 2) Expand broadband coverage. 3) Digitize public records and put them online in open formats. 4) Pass a national shield law, with explicit protection for online publishers. 5) Regulate electronic transaction fees. 6) Revisit the Children's Online Privacy Protection Act (COPPA). 7) Ditch the Federal Trade Commission's "blogger endorsement" rule. 8) Model zoning reform to make it easier to run a business from your home. 9) Remove payroll tax cap and reduce rate. 10) National health care.
benton.org/node/77927 | Online Journalism Review
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COMMUNITY AS BUSINESS MODEL
[SOURCE: GigaOm, AUTHOR: Mathew Ingram]
[Commentary] As media companies try desperately to solve their revenue problems by launching paywalls and subscription iPad apps, too few are looking at how connecting with their community (or communities) can help. That’s the view of Public Radio International’s vice-president of interactive, Michael Skoler. Engaging a community can be one of the most powerful tools that companies have in an era of real-time, distributed and hyper-social media.
benton.org/node/77945 | GigaOm
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CYBERSECURITY/PRIVACY

DATA SECURITY HEARING
[SOURCE: House of Representatives Commerce Committee, AUTHOR: Press release]
The House Commerce Subcommittee on Commerce, Manufacturing, and Trade, chaired by Rep. Mary Bono Mack (R-CA), today held a legislative hearing on the discussion draft of the Secure and Fortify Data Act (SAFE Data Act), which establishes uniform national standards for data security and data breach notification.
Chairman Bono Mack introduced this legislation in the aftermath of several high-profile data breaches at companies including Sony, Epsilon, and Citigroup. These recent cyber attacks have compromised the personal information of millions of Americans, underscoring the need for greater online protections.
“The Federal Trade Commission estimates that nearly nine million Americans fall victim to identity theft every year, costing consumers and businesses billions of dollars annually. And the problem is only getting worse as these online attacks increase in frequency, sophistication and boldness,” said Chairman Bono Mack. “ E-commerce is a vital and growing part of our economy. We should take steps to embrace and protect it – and that starts with robust cyber security. Most importantly, consumers have a right to know when their personal information has been compromised, and companies and organizations have an overriding responsibility to promptly alert them.”
The SAFE Data Act takes the necessary steps toward ensuring American consumers are appropriately protected from data theft. The draft bill would establish uniform national data breach notification standards and enhance the authority of the Federal Trade Commission to penalize companies that fail to respond to a breach in a timely and responsible manner.
FTC Commissioner Edith Ramirez reiterated the Commission’s unanimous support for a federal data breach law at today’s hearing. “Companies’ implementation of reasonable security is important for protecting consumers’ data from identify theft and other harms. And if a breach occurs, prompt notification to consumers in appropriate circumstances can mitigate any such harm,” said Ramirez.
Members on both sides of the aisle stressed an urgent need for stronger standards to safeguard Americans online. Chairman Bono Mack voiced her commitment to working with her colleagues to advance a strong data security bill through Congress.
benton.org/node/77975 | House of Representatives Commerce Committee | FTC | paidContent | Washington Post
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DATA SECURITY AND BREACH NOTIFICATION ACT
[SOURCE: US Senate Commerce Committee, AUTHOR: Press release]
Sens Mark Pryor (D-AR) and John D. (Jay) Rockefeller IV (D-WV) today reintroduced legislation to require businesses and nonprofit organizations that store consumers’ personal information to put in place strong security features to safeguard sensitive data, alert consumers when this data has been breached, and provide affected individuals with the tools they need to protect their credit and finances. Currently, there is no single federal standard for guarding many types of consumer information.
The Data Security and Breach Notification Act requires entities that own or possess data containing personal information to establish reasonable security policies and procedures to protect that data. If a security breach occurs, entities would have to notify each individual whose information was acquired or accessed as a result of the breach. Affected consumers would be entitled to receive consumer credit reports or credit monitoring services for two years, as well as instructions on how to request these services.
benton.org/node/77964 | US Senate Commerce Committee
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MOBILE PRIVACY BILL
[SOURCE: Washington Post, AUTHOR: Cecilia Kang]
Sens Al Franken (D-MN) and Richard Blumenthal (D-CT) introduced a smart phone privacy bill that would require companies like Apple and Google to get permission from users before sharing geo-locational data with third parties. The bill comes amid increased concern that mobile phone and apps makers are collecting information about a consumer’s whereabouts based on GPS and other technology and sharing that data with outside parties. The bill, called the Location Privacy Protection Act of 2011, aims to better protect users’ privacy and inform them how their data is being used.
benton.org/node/77972 | Washington Post | Multichannel News | The Hill | CNNMoney
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INTERNET/BROADBAND

NEW TRY AT BLOCKING NETWORK NEUTRALITY
[SOURCE: Politico, AUTHOR: Eliza Krigman]
House Republicans are trying for a second time to kill the Federal Communications Commission’s network neutrality rules by denying enforcement funding. The House Appropriations Committee released a draft of its FY12 Financial Services Appropriations bill with language that would prohibit money for the agency’s Open Internet Order. Republicans say the FCC rules amount to government over-regulation of the Internet. But net neutrality supporters were quick to criticize the GOP’s move. “The legislation the majority wrote would allow the largest telecommunications companies to reshape the Internet in their own image, favoring some and disadvantaging others,” Public Knowledge President Gigi Sohn said.
benton.org/node/77955 | Politico | Public Knowledge | National Journal
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GENACHOWSKI AT CABLE SHOW
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
Federal Communications Commission Chairman Julius Genachowski said that the pace of broadband adoption is too slow and called on cable operators to step up their efforts. For his part, National Cable & Telecommunications Association President Michael Powell said the industry was committed to being a partner in that effort. Echoing Powell's phrase in his keynote, Chairman Genachowski said broadband adoption is what "powers the American dream," and empowers people to find and get jobs, an education, and healthcare. "Sixty-seven percent [the current broadband adoption rate] is so far from good enough, that we can't be satisfied with slow, step-by-step incremental change." He noted that adoption had only increased by a couple percentage points in the past year. It's just not good enough." Powell quickly responded that he could count on the cable industry to be a partner in that effort. But speaking to an audience that had helped make broadband available to 93% of the country and which has taken a number of steps to boost adoption as well, the chairman was looking to get more help, not to bite the hand that was already feeding that effort.
benton.org/node/77951 | Broadcasting&Cable | MediaPost
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WISCONSIN BUDGET AND BROADBAND
[SOURCE: Wisconsin State journal, AUTHOR: Clay Barbour, Mary Spicuzza]
In Wisconsin, Republican leaders announced they were backing away from a controversial plan to give back some $37 million in federal grant money awarded to the University of Wisconsin system. Supporters say that money will help extend broadband Internet to rural and under-served areas. The proposal would have meant UW-Madison could no longer support WiscNet, a statewide Internet provider. Eight Republican representatives wrote Assembly Speaker Jeff Fitzgerald (R-Horicon) and Finance Committee Co-Chairman Robin Vos (R-Rochester) voicing opposition to the plan. “Our districts are largely rural and broadband access is a significant issue for our constituents,” they wrote. “Consumers, regional economic development groups, schools, libraries and higher education institutions have all expressed their concern that the discontinuation of WiscNet would have a devastating effect on access for our constituents, increasing costs and limiting accessibility.”
benton.org/node/77946 | Wisconsin State Journal
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CALIFORNIA ONLINE SALES TAX
[SOURCE: San Jose Mercury News, AUTHOR: Patrick May]
One of the more intriguing pieces of the last-minute budget approved by California legislators is an online sales tax, a controversial and previously failed effort to tax purchases from online retailers. Its sponsors say the tax would bring in an estimated $200 million a year, a relative drop in the bucket but still a tantalizing chunk of change for a state whose finances are in utter turmoil. For consumers, it would mean they can't avoid sales tax by buying online. The proposed tax, which has been sought several times before in California and rejected, is part of legislation passed Wednesday by the Senate and Assembly and now heading to Gov. Jerry Brown. Under federal law, states can tax sales only if the seller has a physical presence in the state. The California bill seeks to get past that issue by letting the state tax board collect from any retailer with a so-called business "nexus" or connection with an affiliate inside California. Supporters say it would make the tax code more fair, forcing Internet retailers to collect taxes just as brick-and-mortar stores already do. "We're finally on the way to creating a level playing field for California companies," said Sen. Loni Hancock, D-Berkeley, author of one of the three bills that were merged into the budget proposal. "All in-state businesses already collect and remit taxes, so those that do not -- like Amazon, Overstock and others -- have an unfair advantage." Opponents and some tax-reform groups across the country insist the proposed law is unconstitutional and would lead California to the same disappointment experienced by the handful of other states that have enacted similar legislation.
benton.org/node/77993 | San Jose Mercury News
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TELEVISION

NETFLIX AND CORD-CUTTING
[SOURCE: New York Times, AUTHOR: Nick Bilton]
The Diffusion Group released a report finding that people who use Netflix to stream Internet video to their televisions are twice as likely to cancel, or slim down, their cable television options as they were a year ago. When the Diffusion Group surveyed Netflix members in 2010, they found that 16 percent of customers were planning to downgrade or cancel their cable television service. During the same survey this year, the number of customers planning to make that change had doubled to 32 percent. The report also found that although the majority of those surveyed cited economic reasons and “the need to save money” as a rationale for canceling cable, 34 percent said a growing use of online video was the culprit, “two-thirds of which cite Netflix in particular as the primary perpetrator,” the report says.
benton.org/node/77973 | New York Times
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WIRELESS/SPECTRUM

STATES AND THE MERGER
[SOURCE: C-Net|News.com, AUTHOR: Kent German]
AT&T is lobbying in DC to win approval for its acquisition of T-Mobile. But its also working hard in state capitols across the country (the carrier has even gotten into a tussle with Sprint over a possible state review in West Virginia). And at the time of this writing, AT&T has been successful. Though three states are taking a closer look, 17 state governors have voiced their approval for the deal. Here's how the states are lining up so far.
benton.org/node/77963 | C-Net|News.com
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DEAL WILL NOT MEAN LOWER PRICES
[SOURCE: Public Knowledge, AUTHOR: Ernesto Falcon]
[Commentary] As part of its campaign to conquer the wireless market by buying out T-Mobile, the fourth-largest wireless carrier, AT&T is trying to tell anyone who will listen that going from four national carriers to two will actually lower prices. Nothing of the sort will happen. Rather, the result will be just the opposite. AT&T will be sitting along with Verizon to create a national duopoly of big carriers. They will also gain a monopoly on GSM wireless technology, as AT&T and T-Mobile are the only national carriers that provide national GSM coverage. But in an effort to distract from this reality, AT&T is using modified charts and irrelevant statistics to make its case.
benton.org/node/77961 | Public Knowledge
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LIGHTSQUARED ASKS FOR TWO MORE WEEKS
[SOURCE: National Journal, AUTHOR: Josh Smith]
The Federal Communications Commission granted LightSquared's request for an extended deadline for filing preliminary research on potential interference, just hours before the highly anticipated report was due. A mass amount of new data forced LightSquared to ask federal regulators to extend the deadline by two weeks, a company spokesman said. The report will spark the next stage of debate between LightSquared and opponents who worry the company's plan could block global positioning systems. LightSquared wants to build a nationwide broadband network, but the GPS industry says the new system could interfere with GPS receivers. LightSquared was due to submit preliminary research on potential interference to the FCC by 11:59 pm June 15. But much of the data was submitted to the company late June 14 and was still coming in on June 15, giving LightSquared staff little time to process and analyze the information, a spokesman said. LightSquared asked the FCC to extend the deadline to July 1st.
benton.org/node/77958 | National Journal
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UNAFFORDABLE ROAMING
[SOURCE: New York Times, AUTHOR: Editorial staff]
[Commentary] In a plugged-in, hyperglobalized world, one might expect that our communications networks would allow us to roam widely, cellphones and tablets connected to the matrix, no matter the location. But when it comes to telecommunications pricing, globalization stopped at the border. A new survey found that international data roaming among the industrialized countries (members of the Organization for Economic Cooperation and Development) costs, on average, $6 to $10 per megabyte — about the amount needed to e-mail a few low-resolution snapshots. Talking isn't much cheaper. A similar study two years ago reported that the average price of a three-minute local call in an O.E.C.D. country while roaming internationally was $6.76. These exorbitant prices have little to do with the cost of moving a byte or a sentence over telecom networks, which has fallen sharply in recent years. Rather, the OECD suggests it reflects a lack of competition among wireless carriers offering cross-border roaming services. This has likely been compounded in the United States by a lack of regulation of the interconnection fees that telecom operators charge each other to let data flow across their networks.
benton.org/node/77997 | New York Times
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CONTENT

NEW PEW STUDY ON SOCIAL MEDIA
[SOURCE: Pew Research Center's Internet & American Life Project, AUTHOR: Keith Hampton, Lauren Sessions Goulet, Lee Rainie, Kristen Purcell]
Use of social networking sites is growing and those who use these sites, especially Facebook users, have higher measures of social well-being.
Facebook users are more trusting than others. Controlling for other factors, the research found that a Facebook user who uses the site multiple times per day is 43% more likely than other Internet users and more than three times as likely as non-Internet users to feel that most people can be trusted.
Facebook users have more close relationships. Controlling for other factors, the research found that someone who uses Facebook several times per day averages 9% more close, core ties in their overall social network compared with other Internet users.
Facebook users are much more politically engaged. The survey was conducted over the November 2010 election season. Compared with other Internet users, and users of other social networking platforms, a Facebook user who uses the site multiple times per day was an additional two and half times more likely to attend a political rally or meeting, 57% more likely to persuade someone on their vote, and 43% more likely to have said they would vote.
Facebook users get more social support. The survey explored how much total social support, emotional support, companionship, and instrumental aid (such as having someone help you when you are sick in bed) adults receive. Controlling for other factors, a Facebook user who uses the site multiple times per day receives more emotional support and companionship. For Facebook users, the additional boost is equivalent to about half the total support that the average American receives as a result of being married or cohabitating with a partner.
Facebook helps users retain high school ties and it revives dormant relationships. In our sample, the average Facebook user has 229 Facebook friends.
benton.org/node/78001 | Pew Research Center's Internet & American Life Project | Read the report | AP | San Jose Mercury News | Politico
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POLICYMAKERS

MEMBERS OF CONGRESS INVESTED IN MEDIA
[SOURCE: AdWeek, AUTHOR: Katie Feola]
The Center for Responsive Politics released a report detailing the value of stock that members of Congress or their spouses hold in media companies. All told, 59 members of Congress own assets in media companies and news organizations. The most popular company among elected officials is Walt Disney Co., which counts 30 members of Congress among its investors -- those 30 members have, between them, at least a quarter of a million dollars in the company. In second place is Comcast, with 22 Congressional shareholders.
benton.org/node/77967 | AdWeek
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