June 2011

FCC Finally Making Some Progress on Media Ownership Rules

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.

Subcommittee on Communications and Technology
House Commerce Committee
Wednesday, June 22, 2011
10:30 a.m.
http://energycommerce.house.gov/hearings/hearingdetail.aspx?NewsID=8713

The subcommittee will consider how the Federal Communications Commission conducts the public’s business. The hearing will focus on how to codify best practices to ensure consistency from issue to issue and from one commission to the next.

Draft legislation

Background Memo

Witness List

The Hon. John Sununu
Honorary Co-Chair
Broadband for America

Kathleen Abernathy
Chief Legal Officer and Executive Vice President
Frontier Communications

Mark Cooper
Research Director
Consumer Federation of America

Ronald Levin
William R. Orthwein Distinguished Professor of Law
Washington University School of Law

Randolph J. May
President
Free State Foundation

Brad Ramsay
National Association of Regulatory Utility Commissioners



FCC Releases Media Ownership Studies; Seeks Public Review

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

President’s Council of Advisors on Science and Technology

July 15, 2011
10 a.m. to 5 p.m
http://www.gpo.gov/fdsys/pkg/FR-2011-06-15/pdf/2011-14879.pdf

PCAST is tentatively scheduled to hear presentations on the U.S. patent system, the activities of the U.S. Chief Information Officer, and the future of the U.S. science and technology research enterprise. PCAST members will also discuss a report they are developing on the role of biological carbon sequestration in climate change mitigation.

Additional information and the agenda, including any changes that arise, will be posted at the PCAST Web site at: http://whitehouse.gov/ostp/pcast

Tentative Agenda (as of 6/15/2011)

10:00 am Welcome from PCAST Co-Chairs
John Holdren, Assistant to the President for Science and Technology; Director, Office of Science and Technology Policy (OSTP); Co-Chair, PCAST
Eric Lander, Co-Chair, PCAST

10:15 am National Academies Study on Future of Research Universities
Speaker: Chad Holliday, Chair, National Academies Study on Future of Research Universities

11:15 am American Academy of Arts and Sciences Study on the Impacts of Federal and Industry Funding of Science, Engineering, and Medicine on American Universities (ARISE II)
Speakers: Venkatesh Narayanamurti and Keith Yamamoto, Co-Chairs, ARISE II

12:15 pm Lunch

1:00 pm Reflections from the Federal Chief Information Officer
Speaker: Vivek Kundra, Federal Chief Information Officer, The White House

2:00 pm Overview of the Patent and Trademark Office
Speaker: David Kappos, Under Secretary of Commerce for Intellectual Property and Director of the United States Patent and Trademark Office, Department of Commerce

3:00 am Public Comment

3:30 pm PCAST Study Update: The Role of Biological Carbon Sequestration in Climate Change Mitigation

5:00 pm Adjourn



June 15, 2011 (What's Right With AT&T's Merger)

BENTON'S COMMUNICATIONS-RELATED HEADLINES for WEDNESDAY, JUNE 15, 2011

Data security tops today's agenda http://benton.org/calendar/2011-06-15/


WIRELESS/SPECTRUM
   White House Meeting on First Responder Network Scheduled With Biden, Genachowski
   S.911: Senators Set Sights On Spectrum - analysis
   What's Right With AT&T's Merger - editorial
   COAT and Affiliates Generally Supportive of ATT and T-Mobile Merger
   Mobile media use up 600% as unlimited plans tune out [links to web]
   Apple starts selling unlocked iPhones in US
   Wireless Industry Innovation: 'We're #1' - editorial [links to web]
   Ericsson Says It Will Buy Telcordia for $1.15 Billion [links to web]
   Law enforcement and cellphone searches [links to web]
   PCCW set to build UK broadband network [links to web]

INTERNET/BROADBAND
   Rep Matsui Re-Introduces Broadband Affordability Bill
   FCC's Genachowski To Challenge Cable To Close Broadband Gap
   Maryland leaders celebrate federal dollars for broadband [links to web]
   Combating Billions of Cyber-Threats Requires International Collaboration [links to web]

ENERGY
   Pay TV boxes hike electric bills, waste energy [links to web]
   Recovery Act Investment Helping Consumers To Better Manage Their Energy Use and Save Energy - press release [links to web]
   The broadband–home energy connection gets stronger - analysis [links to web]

GOVERNMENT & COMMUNICATIONS
   US, NZ, Sweden, others condemn "three strikes" Internet laws [links to web]
   Experts say better spending data is the key to transparency [links to web]

CONTENT
   iTunes Costs Apple $1.3 Billion Every Year, New Report Finds
   Google removes the need to type search requests on desktop computers with Chrome Web browser

TELEVISION
   Who are we kidding? Of course it’s Netflix vs. cable. - analysis
   Netflix chief eyes a slice of broadband subscriptions
   McGraw-Hill Puts Stations on Block [links to web]
   Media chiefs confront challenges facing cable TV industry [links to web]
   Powell: Cable Helps Power American Dream [links to web]

TELECOM
   USF Contribution Factor for 3rd Quarter 2011 -- 14.4 percent - public notice [links to web]

EDUCATION
   Education groups applaud new ed-tech legislation

CYBERSECURITY
   China's Cyberassault on America
   Cyberattacks disclosed as federal security law considered
   Commerce Department: Recent Wave Of Cyberattacks Sounds An Urgent Wake-up Call [links to web]

MORE ONLINE
   US Clears Google Bid on Nortel Patents [links to web]
   Facebook Hires Former White House Press Secretary Joe Lockhart [links to web]
   Tech execs seek visas for 'hotshots' [links to web]
   Don't be overzealous on Internet copyright limits - editorial [links to web]
   How Larry Page Thinks About Search [links to web]

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WIRELESS/SPECTRUM

FIRST RESPONDER NETWORK ON AGENDA
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
Sen. Jay Rockefeller (D-WV) praised the White House for scheduling a meeting June 16 to discuss the need to provide a nationwide interoperable broadband communications network for first responders. President Barack Obama has already come out in support of allocating D block spectrum to that network rather than auctioning it to private companies, as some Republicans and the National Broadband Plan proposed. That allocation is central to Rockefeller's incentive auction bill, which would allow the Federal Communications Commission to compensate broadcasters for giving up spectrum, which would be auctioned to wireless companies and part of the proceeds used to launch and operate the public safety network. Scheduled to attend the meeting are Vice President Joe Biden, FCC Chairman Julius Genachowski, Homeland Security Secretary Janet Napolitano, Attorney General Jeffrey Holder, and Maryland Governor Martin O'Malley (D).
benton.org/node/77730 | Broadcasting&Cable
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S 911
[SOURCE: CommLawBlog, AUTHOR: Lee Petro]
The Senate Commerce Committee has approved S.911, a bill – co-sponsored by the Committee’s Republican and Democratic leaders – which provides perhaps the most detailed legislative effort advanced thus far to move incentive spectrum auctions closer to reality. (Check out our posts on previous incentive auction bills here.) The bill now goes to the full Senate for its consideration, which is far from guaranteed at this point. Additionally, action on some corresponding bill (which has not yet surfaced) in the House will be necessary before S.911 becomes law. So we still have a ways to go before incentive auctions become reality. But given its bipartisan origins and the fact that it’s already made it to the full Senate, S.911 is probably the horse to watch in the race among incentive auction bills.
benton.org/node/77728 | CommLawBlog
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WHAT'S RIGHT WITH MERGER
[SOURCE: Wall Street Journal, AUTHOR: Holman Jenkins Jr]
[Commentary] Cynicism is insufficient to understand the noisy opposition of Sprint CEO Dan Hesse to the proposed merger of AT&T and T-Mobile. Meta cynicism is required. A mere cynic would conclude that if Sprint, as a competitor, is opposing the deal as "anticompetitive," the deal must be, ipso facto, competitive. But don't assume Hesse is even really against the deal, which would leave Sprint the industry's undisputed No. 3 and bargain specialist. He may just like the idea of regulators torturing the merger for the next 18 months while Sprint gets its own act together. The mobile industry is struggling to meet accelerating demand, but adding spectrum is only one way, and not the main way, of keeping up. Existing spectrum can also be used more efficiently. An observation known as Cooper's Law holds that the capacity of the airwaves to host simultaneous conversations in a given location has doubled every 30 months since the birth of radio. Then there's the method that mobile operators have actually relied on most of all: building more and more towers and shrinking the size of each cell, a process whose practical limit recedes as technology advances and costs come down. The choice is really one of relative costs. AT&T sees such juicy synergies from merging its system with T-Mobile's that it's practically getting T-Mobile's spectrum for a song. Yet AT&T will not slit its wrists if the deal is rejected. It will simply revert to second-best approaches to keeping abreast of industry leader Verizon. Of course, second-best means service quality will advance more slowly and cost declines (per megabit) will be slower in coming. Hence the voices in Silicon Valley, including those of Facebook, Yahoo and Microsoft, suddenly being raised in support of the deal.
The right reason, then, for approving the merger is because the parties want it and because AT&T has plunked down the money, because it sees buying T-Mobile as the most expeditious way to stay on the heels of Verizon today and tomorrow, never mind 10 years from now. But the furor the proposal has elicited is symbolic of one important thing: AT&T's reckless faith in the rationality of our regulatory system. Here, if you want to fret about America's future, is the issue to be cynical about.
benton.org/node/77766 | Wall Street Journal
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COAT MERGER COMMENTS
[SOURCE: Coalition of Organizations for Accessible Technology, AUTHOR: ]
In a filing at the Federal Communications Commission, the Coalition of Organizations for Accessible Technology is generally supportive of AT&T's proposed purchase of T-Mobile. COAT said we would like AT&T to more publicly affirm its commitment to universal design of products and services for people with disabilities.
COAT asked for reaffirmation of AT&T’s commitment to:
Caption all video offerings available through UVerse
Caption any AT&T Uverse video programming, or TV content over which ATT has control, that is also displayed on the Internet
Caption any video clips on its website, such as for any public education campaigns or instructional materials, or circulate for other purposes
Require video description of all video offerings available through UVerse from all content providers
Require video description of any video clips on its website, such as for any public education campaigns or instructional videos, or circulated for other purposes
Require wireless hand set and other product manufacturers (e.g., tablets, pods, laptops, netbooks) that have connectivity with the AT&T network to be accessible to and usable by people with disabilities, including hearing aid compatibility of all hand sets
Provide low-cost, data-only and text-only plans for individuals who are deaf or hard of hearing and ‘grandfather in’ current T-Mobile customers who are deaf and hard of hearing who currently hold data plans at low rates, including those with unlimited plans.
Provide full functional equivalency of telecommunications relay services (TRS)
Offer plans for deaf and hard of hearing users that take into account the increased bandwidth required for video calls in order ensure effective communication
Actively seek and implement technology that can immediately alert and warn people with disabilities of emergencies
Ensure that its customer website is in compliance with the requirements of Section 508 of the Rehabilitation Act
benton.org/node/77722 | Coalition of Organizations for Accessible Technology
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UNLOCKED IPHONE
[SOURCE: Associated Press, AUTHOR: Peter Svensson]
Apple on started selling "unlocked" iPhones in the US for the first time, allowing owners to switch carriers to a limited extent and save money when traveling. Apple is selling them on its websites and its store for $649 and $749 depending on how much memory they have. They're identical to the versions sold for use on AT&T Inc.'s network, but don't require a two-year contract. The buyer will separately have to buy a Subscriber Identity Module, or SIM card, from a carrier to activate the phone. Many overseas carriers are fully compatible with the phone, so international travelers can switch out their US. SIM card with one from the local country to avoid AT&T's international roaming fees. Apple already sells unlocked iPhones in all other countries where the phone is available
benton.org/node/77734 | Associated Press
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INTERNET/BROADBAND

BROADBAND AFFORDABILITY ACT
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
Rep Doris Matsui (D-CA) has re-introduced a bill that would expand the Universal Service Fund to include broadband by discounting Internet access service to the poor. The Broadband Affordability Act of 2011 would provide low-income Americans living in rural and urban areas with a discount on broadband internet service. The program would be made part of the USF's Lifeline Assistance program, which does the same for rural and low-income phone customers. Rep Matsui first introduced the bill in fall 2009. The FCC also recommended the move as part of its National Broadband Plan. As part of that plan, the FCC wants to migrate the Universal Service Fund, of which Lifeline Assistance is a part, from phone to broadband service.
benton.org/node/77710 | Broadcasting&Cable | National Journal
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BROADBAND ADOPTION TASKFORCE
[SOURCE: Multichannel News, AUTHOR: John Eggerton]
Federal Communications Commission Chairman Julius Genachowski is creating a Broadband Adoption Task Force, which he will announce at the National Cable & Telecommunications Association Cable Show in Chicago June 15. Chairman Genachowski, who is slated for a keynote interview at the opening general session by NCTA President Michael Powell, plans to call on cable operators to "build on their excellent work" in broadband deployment and adoption by finishing the job. "As an industry, you've connected two-thirds of Americans to broadband - and I applaud you for that. Now, let's work together to connect the last third - nearly 100 million people - so all Americans can participate fully in our 21st century economy and society," he plans to say, according to highlights of his speech supplied by the chairman's office. According to Chairman Genachowski, the economic cost to the country of those 100 million nonadopters is $55 billion a year, while closing the gap could create "millions" of jobs. The task force will be headed by Genachowski senior counselor Josh Gottheimer. According to Genachowski, Gottheimer will work with agency and private and public sectors reps to brainstorm strategies for closing the adoption gap.
benton.org/node/77751 | Multichannel News
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CONTENT

APPLE ITUNES SPENDING
[SOURCE: The Atlantic, AUTHOR: Nicholas Jackson]
There are 225 million iTunes account holders, which is an astronomical figure given that the service has only been operating since April 2003. But iTunes is still only at the break-even point. All of those users account for 15 billion song downloads every year. In addition, they buy 130 million books, 14 billion apps and about 100,000 games. That's a lot of money exchanging hands. Something like $313 million every month. But, given Apple's deals with music labels to secure the rights to all of that music it's offering in the iTunes store and the $2.5 billion we know the company has paid out to developers, a figure that was revealed just last week at the Worldwide Developers Conference, the content margin is only about $113 million. (Asymco defines a content margin as what Apple keeps after paying the owners of content but before paying variable costs.) That money, the $113 million every month that Apple is bringing in (far more comes from app downloads than music downloads), is spent on support, curation, traffic and payment processing. Whatever is leftover, Asymco suggests, is "invested in capacity increases." That is, adding to the massive server farms that are required to store all of the available content and acquiring new material.
benton.org/node/77720 | Atlantic, The
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GOOGLE CHROME UPGRADES
[SOURCE: Associated Press, AUTHOR: ]
Making Google search requests on many office and home computers soon won't require a keyboard. A new feature will allow people to speak their search requests while sitting in front of their desktop computers just as they already can on smartphones running on Google’s Android software. The spoken-request option will be available only on Google’s Chrome browser. It will be activated by clicking on a microphone icon inside Google’s search box. Chrome users will get the new feature within the next few days. Google also unveiled a way to get results by dragging digital images into its search box.
Incredible stuff, but Google Instant itself wasn't without controversy. And by speeding up the search process, and refining it still more on a history-based algorithm, Google risks reigniting controversy with Pages. First, what does it do for a website's pageview count? Does the pre-load count as a pageview or unique visit? What happens if the customer actually chooses to click on a different link instead of the pre-guessed ones? Does all this extra computing and server work actually require more power than before, which could worsen Google's carbon footprint? And there's always the closed-loop cycle to think about, whereby a system like Google's that relies on your past habits to pre-form your future interactions with it can result in a type of tunnel-vision. Imagine Google uses your search habits to pre-populate a particular page in Instant Pages, which speeds up your Net experience and does guess which page you were going to click on correctly. In the future it's possible that a more restricted view of the Net would pop up in its systems based on your previous use, because it kept guessing correctly. It's a potentially limiting behavior, and it could benefit from Google throwing in the odd red-herring or completely random search result.
benton.org/node/77712 | Associated Press | Fast Company
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TELEVISION

NETFLIX VS CABLE
[SOURCE: GigaOm, AUTHOR: Janko Roettgers]
Ask Netflix about cord cutting, and it'll tell you: “It’s not happening, it’s not anything we are causing, cable and Netflix are complementary.” Then take a look at the actions of service operators, cable networks, consumers and even Netflix itself, and you’re going to see a decidedly different picture: Cable and Netflix are competing for the same eyeballs, the same money and the same TV real estate, and the fight is getting tougher by the day. Not convinced yet? Then consider this evidence: 1) Consumers are ready to jump ship, 2) Content licensing is getting more competitive, 3) Cable companies castrate their TiVos, 4) Netflix is dominating every screen, and 5) Incumbents are putting a cap on it.
benton.org/node/77703 | GigaOm
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RETRANS 2.0
[SOURCE: The Hill, AUTHOR: Sara Jerome]
Netflix chief executive Reed Hastings floated the idea that online video providers should get a cut of the subscriptions paid to cable and phone companies since customers sign up in part to access Netflix services. "We haven't yet said [to broadband providers], 'Of your $40 [per month] broadband [service], we are 30 percent of the traffic, so we want 30 percent of the revenue,'" he said. "We haven't done that, [so] there is still a good relationship." "With Netflix creating so much value for ISPs — driving broadband adoption and higher broadband speed tiers, at what point does Netflix demand a share of an ISP's monthly subscription fees — what we will effectively call, retrans 2.0?" BTIG analyst Richard Greenfield wrote. "Netflix would essentially be creating a dual revenue stream model, where they are being paid by both the ISP and the consumer on a monthly basis."
benton.org/node/77702 | Hill, The
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EDUCATION

ATTAIN ACT
[SOURCE: eSchool News, AUTHOR: Laura Devaney]
Educational technology stakeholders are applauding the introduction of a bill called the Achievement Through Technology and Innovation (ATTAIN) Act and note that, if passed, the legislation will work to bolster technology literacy and will increase access to educational opportunities through online learning. “The ATTAIN Act recognizes that technology literacy is an essential skill our children need to be college and career ready and prepared to navigate and succeed in the competitive 21st-century environment,” said 11 leading education and ed-tech organizations in a joint statement. The bill was introduced by Sens. Jeff Bingaman (D-NM), Patty Murray (D-WA), and Richard Blumenthal (D-CT). The measure directs federal funds to train teachers, purchase educational technology hardware and software, and support student technological literacy. It authorizes up to $1 billion in annual funding for educational technology and teacher training nationwide. The ed-tech groups said the bill will “foster the expansion of online and blended learning and promote technology initiatives that lead to personalized, rigorous, and relevant learning. The bill also will spur efforts to increase education productivity and reduce costs through the use of technology.
benton.org/node/77705 | eSchool News
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CYBERSECURITY

CHINA'S CYBERASSAULT
[SOURCE: Wall Street Journal, AUTHOR: Richard Clarke]
[Commentary] In justifying U.S. involvement in Libya, the Obama administration cited the "responsibility to protect" citizens of other countries when their governments engage in widespread violence against them. But in the realm of cyberspace, the administration is ignoring its primary responsibility to protect its own citizens when they are targeted for harm by a foreign government. Senior U.S. officials know well that the government of China is systematically attacking the computer networks of the U.S. government and American corporations. Beijing is successfully stealing research and development, software source code, manufacturing know-how and government plans. In a global competition among knowledge-based economies, Chinese cyberoperations are eroding America's advantage. In private, U.S. officials admit that the government has no strategy to stop the Chinese cyberassault. Rather than defending American companies, the Pentagon seems focused on "active defense," by which it means offense. That cyberoffense might be employed if China were ever to launch a massive cyberwar on the U.S. But in the daily guerrilla cyberwar with China, our government is engaged in defending only its own networks. It is failing in its responsibility to protect the rest of America from Chinese cyberattack. [Clarke was a national security official in the White House for three presidents]
benton.org/node/77757 | Wall Street Journal
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CYBERATTACKS DISCLOSED
[SOURCE: USAToday, AUTHOR: Byron Acohido]
The recent rash of disclosures about cyberspying comes as the White House is making its third attempt to push through a historic federal cybersecurity law. The timing is no coincidence, some cybersecurity analysts say. After two previous bills went nowhere, the White House needs to garner public support for a new law that could equip America for cyberwarfare. "The best way to do that is to get folks worried that we're under attack from some foreign state like China or North Korea," says Ed Adams, CEO of Security Innovation, which integrates security systems for government agencies. Recent disclosures of cyberattacks against the International Monetary Fund, Google and several defense contractors coincided with an unprecedented pronouncement last week by CIA Director Leon Panetta, who warned a U.S. Senate panel that the U.S. needs to take "defensive measures as well as aggressive measures" to win at cyberwarfare. The bill is gaining bipartisan support in Congress. It would establish a framework for distributing billions of dollars for new cybersecurity systems, while placing responsibility for securing cyberspace with the Department of Homeland Security.
benton.org/node/77756 | USAToday
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What's Right With AT&T's Merger

[Commentary] Cynicism is insufficient to understand the noisy opposition of Sprint CEO Dan Hesse to the proposed merger of AT&T and T-Mobile. Meta cynicism is required. A mere cynic would conclude that if Sprint, as a competitor, is opposing the deal as "anticompetitive," the deal must be, ipso facto, competitive. But don't assume Hesse is even really against the deal, which would leave Sprint the industry's undisputed No. 3 and bargain specialist. He may just like the idea of regulators torturing the merger for the next 18 months while Sprint gets its own act together.

The mobile industry is struggling to meet accelerating demand, but adding spectrum is only one way, and not the main way, of keeping up. Existing spectrum can also be used more efficiently. An observation known as Cooper's Law holds that the capacity of the airwaves to host simultaneous conversations in a given location has doubled every 30 months since the birth of radio. Then there's the method that mobile operators have actually relied on most of all: building more and more towers and shrinking the size of each cell, a process whose practical limit recedes as technology advances and costs come down. The choice is really one of relative costs. AT&T sees such juicy synergies from merging its system with T-Mobile's that it's practically getting T-Mobile's spectrum for a song. Yet AT&T will not slit its wrists if the deal is rejected. It will simply revert to second-best approaches to keeping abreast of industry leader Verizon. Of course, second-best means service quality will advance more slowly and cost declines (per megabit) will be slower in coming. Hence the voices in Silicon Valley, including those of Facebook, Yahoo and Microsoft, suddenly being raised in support of the deal.

The right reason, then, for approving the merger is because the parties want it and because AT&T has plunked down the money, because it sees buying T-Mobile as the most expeditious way to stay on the heels of Verizon today and tomorrow, never mind 10 years from now. But the furor the proposal has elicited is symbolic of one important thing: AT&T's reckless faith in the rationality of our regulatory system. Here, if you want to fret about America's future, is the issue to be cynical about.

US Clears Google Bid on Nortel Patents

Apparently, the Department of Justice has given Google the go-ahead to pursue its $900 million opening bid for a trove of high-tech patents being sold next week by Canadian telecommunications-equipment maker Nortel Networks.

Ericsson Says It Will Buy Telcordia for $1.15 Billion

Telefon AB LM Ericsson, the world's largest maker of equipment for mobile-phone networks, said it has agreed to buy privately owned telecommunications-software company Telcordia Technologies Inc. for $1.15 billion, a deal that will help it manage the explosive global growth in smartphone and broadband-Internet use.

Ericsson Chief Executive Hans Vestberg described Telcordia as a "perfect fit." Telcordia provides software and services to fixed-line and wireless carriers, helping them manage their networks more efficiently. Its next-generation products, centered on Internet-protocol-based communications, are expected to bring the lion's share of its revenue in coming years. Ericsson, which says it routes two out of every five of the mobile calls made through its systems, expects huge growth in the market for such software and services as more and more mobile devices connect to the Internet, overburdening networks. The deal also gives Ericsson a stronger foothold in the U.S. market as Telcordia's clients include major domestic carriers such as AT&T Inc. and Sprint-Nextel Corp.

Media chiefs confront challenges facing cable TV industry

A sense of urgency surrounds the annual National Cable & Telecommunications Association convention in Chicago this week as big media firms grapple with a host of business challenges that threaten their livelihood.

An onslaught of new technologies, devices and digital-content-delivering platforms and the nation's growing wealth divide are challenging the cable television industry to no longer take for granted customers who shell out $70 to $100 a month for service. Young consumers, in particular, do not seem to share their parents' affinity for their pricey cable and satellite TV packages, and are increasingly drawn to the Internet and to services including Netflix and Hulu for entertainment. The health of the cable industry is crucial to the rest of the entertainment pipeline because it is cable and satellite operators who underwrite the high cost of television programming. While industry leaders tried to put on a brave face, not everyone was buying it.

Law enforcement and cellphone searches

[Commentary] California State Sen. Mark Leno (D-San Francisco) introduced a bill to overturn the Supreme Court's decision and require officers to secure a warrant, based on a showing of probable cause, before they search a phone.

Leno's bill, SB 914, intelligently balances the needs of police with the historic limitations on their power to search; it has passed the Senate and deserves approval by the Assembly as well. People of varying politics should recognize the value of strong, clear rules to guide the actions of police. Libertarians no less than liberals should see that it serves no one to have police allowed the authority to snoop without guidance from the courts. Police are not allowed to search a suspect's house or his computer without probable cause, and there's no reason why they should be allowed to search his cell phone.