June 2011

Why the FCC should deny the AT&T / T-Mobile Merger

[Commentary] In order for the Federal Communications Commission to approve the mega-merger between AT&T and T-Mobile, AT&T has to make a showing that the merger is in the public interest. Despite AT&T’s declaration that this merger is the most pro-consumer, pro-innovation and pro-investment solution to America’s wireless problems, a mega-merger like this can only hurt the broadband market, both for innovators and consumers alike.

The current “gatekeeper” model of wireless internet access, where access providers like AT&T and service providers like Apple can control the services we can access, will only become more rigid should this merger be allowed. In the past few years AT&T has shown that it will work with other gatekeepers, such as Apple, in order to keep competitive products, such as Google Voice, out of its markets. The fewer wireless internet access providers available to internet users, the greater the ability of gatekeepers at all layers of the communications marketplace to affect how we use the internet and what services we access. It should be consumers driving the future of the mobile Internet, picking the winning and losing services and applications at different layers of the market through individual choice. Instead, this merger will allow AT&T and Apple the kind of vertical market power that, instead of promoting competition, permits preemptive elimination of services and applications that are perceived to be competing. Innovation and consumer choice will be what suffers.

[Neill is Director of New Media Rights]

California Purges Thousands of State-Issued Cell Phones

As mobile devices continue to gain in popularity, California has taken a step to limit their use by state employees. Gov. Jerry Brown (D-CA) announced June 8 that 29,398 cell phones have been eliminated from state use — a 44 percent reduction in state agencies and departments.

This is just the first round of cuts. Brown’s target goal is to remove a total of 33,559 cell phones from state service, which would equal a 50 percent reduction statewide. The cutbacks are expected to save approximately $13 million. Evan Westrup, a spokesman for the governor’s office, said that Brown’s own office has achieved a 75 percent cutback of its cell phones to set an example for the rest of the state.

Teens Love Mobile Videos, Accept Mobile Ads

Mobile entertainment continues to grow among teens and other young people. Teenagers 12-17 watch almost twice as much mobile video as other mobile viewers -- 7 hours and 13 minutes versus 4 hours and 20 minutes for every one else, according to the Nielsen Company. Better news for marketers: Nielsen says youngsters are more accepting of mobile ads than older users. Almost 60% say they "always" or "sometimes" look at mobile ads. As other studies have shown, young people also do a lot more texting and less talking on the phone. In the first quarter, teens 13-17 sent an average of 3,364 mobile texts per month, more than doubling the rate of the next-most active texting user group, 18- to-24-year-olds, who tap out 1,640 texts per month. Also -- as other studies continue to show -- teens don't use their mobile phones for what was assumed to be the primary activity of those devices. Teens talk on their phones on average 515 minutes per month, while their slightly older friends -- 18- to-24-year-olds -- spend 750 minutes a month talking on the phone.

American Cable Association CEO: "Underserved is a dangerous term"

A Q&A with American Cable Association CEO Matthew Polka about the group's proposed 16/4 Universal Service Fund speed target, retransmission consent and why he says USF funding shouldn't be used for cable network overbuilds.

Like rural telcos, rural cable operators have different concerns than their metro area counterparts. Since 1993, many rural cable companies have turned to the American Cable Association to help represent their concerns on public policy issues. Connected Planet talked recently with ACA President and CEO Matthew Polka to get the ACA’s take on issues such as retransmission consent and Universal Service reform. About forty percent of ACA’s 900 members are owned by incumbent or competitive rural telcos, and that reality also helps shape the organization’s unique point of view.

Obama Administration Establishes White House Rural Council to Strengthen Rural Communities

The White House announced the establishment of the first White House Rural Council.

While rural communities face challenges, they also present economic potential. To address these challenges, build on the Administration’s rural economic strategy, and improve the implementation of that strategy, the President signed an Executive Order establishing the White House Rural Council. The White House Rural Council will coordinate programs across government to encourage public-private partnerships to promote further economic prosperity and quality of life in rural communities nationwide. Chaired by Secretary of Agriculture Tom Vilsack, the Council will be responsible for providing recommendations for investment in rural areas and will coordinate Federal engagement with a variety of rural stakeholders, including agricultural organizations, small businesses, and state, local, and tribal governments.

The Council will begin discussing key factors for growth, including:

  • Jobs: Improve job training and workforce development in rural America
  • Agriculture: Expand markets for agriculture, including regional food systems and exports
  • Access to Credit: Increase opportunity by expanding access to capital in rural communities and fostering local investment
  • Innovation: Promote the expansion of biofuels production capacity and community based renewable energy projects
  • Networks: Develop high-growth regional economies by capitalizing on inherent regional strengths
  • Health Care: Improve access to quality health care through expansion of health technology systems
  • Education: Increase post-secondary enrollment rates and completion for rural students
  • Broadband: Support the President’s plan to increase broadband opportunities in rural America
  • Infrastructure: Coordinate investment in critical infrastructure
  • Ecosystem markets: Expanding opportunities for conservation, outdoor opportunities and economic growth on working lands and public lands.

The Council will include heads of 25 executive branch departments, agencies, and offices including the Federal Communications Commission, the Department of Commerce, and the Office of Science and Technology Policy.

T-Mobile USA Offers $200 Credit To Lure Business Customers

T-Mobile USA, hoping to stem the loss of its most-valuable customers, began offering a $200 credit to business customers looking to switch to its service. New customers who sign up will get a $10 credit for 20 months after the line has been active for 90 days.

The credit was quietly offered starting last week. The move is a response to Sprint's own efforts to poach customers away from its rival carriers. Last month, it began offering a $125 credit to new smartphone customers and $175 to business customers. Sprint specifically targeted T-Mobile with its incentive, and a T-Mobile spokesman said its new offer is designed to win customers back. T-Mobile, a unit of Deutsche Telekom AG, is attempting to keep a business-as-usual outlook as it looks to be snapped up by AT&T in a proposed deal that is making its way through the approval process. In the meantime, the carrier has suffered from heavy customers losses--particularly from lucrative consumers who are dropping their long-term service contracts.

World IPv6 Day draws attention to security issues with new protocol

The marking of World IPv6 Day June 8 has drawn fresh attention to the next generation Internet addressing protocol, as well as to the security considerations that enterprises will need to deal with as they migrate to it.

IPv6 is an IP address standard that is designed to replace the current IPv4 protocol, which has been in use since the 1980s for routing Internet traffic. The new protocol has been available for several years now and supports several magnitudes more address spaces than IPv4, while also enabling better security and reliability. Even so, few companies have upgraded to it because of the perceived complexity in doing so. That is expected to start quickly changing though because the IPv4 protocol has almost run out of unique IP addresses for all the Web sites, computers and other devices that are connecting to the Internet on a daily basis.

First National EAS Test Scheduled for November

The feds have scheduled the first ever national test of the Emergency Alert System. The Federal Emergency Management Agency and the Federal Communications Commission will conduct the test Wednesday, Nov. 9 at 2 p.m. EST. The duration may last up to three-and-a-half minutes.

A national alert enables the president to break into regular broadcasts and address the American public during emergencies. One has never been issued in the history of the system, established in 1951 by then President Harry Truman during the Cold War. It was then known as CONELRAD and included the capability to jam aircraft homing devices. It was replaced in the 1960s by the Emergency Broadcast System, which in turn was supplanted with the current Emergency Alert System in 1997. “It is important to remember that this is not a pass or fail test, but a chance to establish a baseline for making incremental improvements to the Emergency Alert System with ongoing and future testing,” said Damon Penn, FEMA’s assistant administrator of National Continuity Programs. “It is also important to remember that the Emergency Alert System is one of many tools in our communications toolbox, and we will continue to work on additional channels that can be a lifeline of information for people during an emergency.” The November test is a culmination of more than two years of planning and development. A limited-area test was done in Alaska in January of 2010, with 104 radio stations and 26 TV stations participating. There were points of failure involving audio levels and improperly functioning encoders and decoders. That the hardware is not configured to a single standard complicates matters.

Federal Emergency Management Agency and Federal Communications Commission
Wednesday, Nov. 9
2 p.m. EST



HHS: Harnessing the power of open data

The Department of Health and Human Services (HHS) and the Institute of Medicine (IoM) co-hosted their second annual event focusing on innovative applications and services that harness the power of open data from HHS and other sources to help improve health and health care.

The Health Data Initiative Forum featured more than 45 new or updated solutions that harness the power of HHS and other federal data to help serve the needs of consumers, health care providers, employers, public health leaders, and policy makers. The forum also featured panel presentations from leaders in information technology development, privacy, venture capital financing, health care delivery systems, state and local government, and public health. Other federal cabinet secretaries participated in the promotion of the use of their agencies’ data, including Environment Protection Agency (EPA) administrator Lisa Jackson, who announced her agency’s new effort to encourage innovators to leverage EPA data to help power useful solutions for the public. The forum included nearly a dozen announcements of major new initiatives being launched using federally supplied health data. Among these announcements were the public and private sponsorship of new “challenges” to develop data-powered solutions that help improve health, including challenges issued by Walgreen’s Pharmacy, Aetna Foundation, Sanofi-Aventis, and the National Cancer Institute.

Additional key announcements made at the forum included the University of Michigan’s debut of the nation’s first graduate program to focus on consumer health informatics; the launch of Start Up Health, a new seed accelerator/entrepreneur academy in New York City aimed at developing new health and wellness startups; ESRI’s release of a new public community health analytics tool called Community Analyst; and an upcoming “invent-a-thon” focused on developing nursing homes of the future, hosted by Johns Hopkins University and the National Collegiate Inventors and Innovators Alliance.