June 2011

Steve Case and Jerry Levin reunite to accelerate health technology

Former AOL CEO Steve Case and former Time Warner CEO Jerry Levin, who together presided over one of the worst mergers in corporate history, are reuniting again to help spur innovation in health and wellness. Levin, a board director with health information start-up OrganizedWisdom is launching a new strategic initiative called StartUp Health designed to help health entrepreneurs access funding, resources and education. StartUp Health is also partnering with Startup America Partnership, a White House initiative chaired by Case to boost innovation and entrepreneurship in the US.

Vulcan Wireless pushes for 700 MHz interoperability

Vulcan Wireless, a 700 MHz licensee that is owned by Microsoft co-founder Paul Allen, is advocating for interoperability among the various 700 MHz spectrum band classes.

Vulcan, which owns 700 MHz spectrum licenses in the lower A Block in Oregon and Washington, is trying to use AT&T's proposed $1.93 billion acquisition of Qualcomm's MediaFLO spectrum, which sits in the lower D and E Blocks of the 700 MHz band, as a vehicle to push for the changes to interoperability rules. "One way forward would be to impose a narrowly tailored and transaction-specific condition in the AT&T/Qualcomm transaction," said Michele Farquhar, a lawyer at Hogan Lovells, which represents Vulcan at the Federal Communications Commission.

In a March 28 filing with the FCC, Vulcan argues that to ensure interoperability and prevent interference with the lower A-Block licensees, the FCC should prevent AT&T from pairing its 700 MHz B and C Block licenses with any newly acquired D and E Block licenses. As a condition of the deal, Vulcan is pushing to have the FCC require interoperability across the entire 700 MHz band by June 2013, when AT&T and Verizon Wireless are expected to be nearing the completion of their LTE deployments. Vulcan thinks that its strategy is more practical than that of another group, which is also advocating for 700 MHz interoperability. The 700 MHz Block A Good Faith Purchasers Alliance, a joint venture among Cellular South, Cavalier Wireless, Continuum 700 and U.S. Cellular, wants interoperability rules in place before any more 700 MHz equipment can be authorized by the FCC.

Apple Backs Down on App Subscription Rules

Apple appears to have backed down on a major component of its new in-app subscription rules, which should provide a big boost to content companies: It has scrapped a rule requiring apps that play content like music, movies, and books to also sell the same content within the app itself, and share the revenue with Apple. Now, apps can offer access to content purchased outside of Apple’s walls, as long as the app doesn't have a “buy” button that connects consumers directly to an external store. That is: Apple won’t make it easy for users to buy in-app content without going through Apple’s store, but it won’t outlaw it, either.

Apple Will Reject DUI Checkpoints Apps

After Apple announced its latest software at its annual Worldwide Developers Conference, the company also updated its guidelines for new applications that are submitted to the iTunes app store. One of the new app guidelines, Section 22.8, says any applications submitted to the iTunes app store that promotes driving under the influence in any way will be rejected. The apps in question can be used to notify people when law enforcements have set up a checkpoint to catch drunk drivers. DUI Dodger, just one of these types of apps available in the iTunes app store, urges people to “fight back” against D.U.I. checkpoints.

June 9, 2011 (New Policy Framework to Strengthen Cybersecurity)

BENTON'S COMMUNICATIONS-RELATED HEADLINES for THURSDAY, JUNE 9, 2011

FCC meeting highlights today's agenda http://benton.org/calendar/2011-06-09/


CYBERSECURITY
   Commerce Department Proposes New Policy Framework to Strengthen Cybersecurity Protections for Businesses Online - press release
   SEC: Firms must disclose relevant cyber attacks
   Divisions Seen In Administration Over Cyberthreats

INTERNET
   Use Census Block Broadband Data, Justice tells FCC
   IPv6 traffic surges at launch of World IPv6 Day
   Mayor Reardon concerned not everyone can afford Google project
   Study: High-speed Internet the connection to greater Iowa revenues [links to web]
   Wyoming Town Creates Broadband Bonanza - op-ed [links to web]
   CNAS: Make it Illegal for U.S. Companies to Aid Internet-Suppressing Autocrats
   Amazon tells shareholders it will stand firm on sales taxes [links to web]

WIRELESS/SPECTRUM
   Public Safety Spectrum and Wireless Innovation Act heads to Senate Floor - press release
   NASUCA Backs Efforts to Block AT&T/T-Mobile
   California Public Utilities Commission set to vote on investigating AT&T deal with T-Mobile
   'Super Wi-Fi' network in doubt
   More effective competition and better regulation needed to cut high mobile data roaming costs
   Verizon wants to swap spectrum with US Cellular
   Sprint Pares Clearwire Voting Interest to Less Than 50% [links to web]
   GPS industry and LightSquared spar over responsibility for interference issue [links to web]
   Wi-Fi reliance increasing with growing mobile broadband adoption [links to web]
   Follow the mobile money - analysis [links to web]
   Carriers Sweat as Texting Cools Off [links to web]

CONTENT
   Why Microsoft needs to buy Netflix - analysis
   CBS Research Chief Calls Netflix A 'Phenomenon,' Says It's Now As Big As A Mid-Size Cable Net
   Internet Piracy and How to Stop It - editorial
   Fortify Copyrights, Europe Artists Say [links to web]
   Apple, Google cloud can help curb online piracy
   GroupM Adopts Anti-Piracy Stance for Digital Buys [links to web]
   In 2 Years Nearly All TV Content Will Be Online
   Recollection: A Collaborative Tool For Sharing And Visualizing Cultural Data [links to web]

PRIVACY
   Facebook to Be Probed in EU for Facial Recognition in Photos
   How To Block Facebook's Face Recognition And Tighten Other Privacy Settings [links to web]
   181 of ComScore's Top 200 Advertisers Have Not Adopted Digital Privacy Code

BROADCASTING/CABLE
   More on Fairness Doctrine - press release
   Dropping TV service in favor of watching Web content gains popularity [links to web]

HEALTH
   Meaningful-use work group recommends extra time for Stage 2
   HHS Investing in Innovations (i2) Initiative
   Telemedicine: An Essential Technology for Reformed Healthcare [links to web]
   Immigrant Media Making, New Voices for Community Health - research [links to web]

JOURNALISM
   FCC Study Finds That Local Reporting Has Waned
   Newhouse School Announces Winners In Fifth Annual Mirror Awards
   Immigrant Media Making, New Voices for Community Health - research [links to web]

POLICYMAKERS
   Senate Republicans mount opposition to Commerce nominee
   FCC Re-ups Technical Advisory Council - public notice

MORE ONLINE
   OPM reports telework progress 6 months after law [links to web]
   Minority kids spend most of their waking hours plugged in [links to web]
   FCC clarifies interconnection obligations of rural carriers and role of state commissions [links to web]
   Apple unveils plans for new Cupertino headquarters [links to web]
   Group will study whether lawmakers are using Twitter less after Weiner scandal [links to web]
   Would you like home surveillance with your broadband? [links to web]
   Know when your bus is late with live transit updates in Google Maps [links to web]

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CYBERSECURITY

NEW CYBERSECURITY REPORT
[SOURCE: Department of Commerce, AUTHOR: Press release]
The Department of Commerce released a report that proposes voluntary codes of conduct to strengthen the cybersecurity of companies that increasingly rely on the Internet to do business, but are not part of the critical infrastructure sector. The report focuses on the “Internet and Information Innovation Sector” (I3S) – these are businesses that range from small and medium enterprises and bricks-and-mortar firms with online services, to social networking sites and Internet-only business, to cloud computing firms that are increasingly subject to cyber attacks. The report makes a number of specific recommendations for reducing I3S vulnerabilities:
Establish nationally recognized but voluntary codes of conduct to minimize cybersecurity vulnerabilities. For example, the report recommends that businesses employ present-day best practices, such as automated security, to combat cybersecurity threats and that they implement the Domain Name System Security (DNSSEC) protocol extensions on the domains that host key Web sites. DNSSEC provides a way to ensure that users are validly delivered to the web addresses they request and are not hijacked.
Developing incentives to combat cybersecurity threats. The report also recommends exploring and identifying incentives that could include reducing “cyberinsurance” premiums for companies that adopt best practices and openly share details about cyberattacks for the benefit of other businesses.
Improve public understanding of cybersecurity vulnerabilities through education and research. Programs like the National Initiative for Cybersecurity Education should target awareness and training to the I3S and develop methods for cost/benefit analyses for cybersecurity expenditures.
Enhance international collaboration on cybersecurity best practices to support expanded global markets for U.S. products. This should include enhanced sharing of research and development goals, standards, and policies that support innovation and economic growth.
benton.org/node/76801 | Department of Commerce | Dept of Commerce blog | read the report | Reuters | The Hill
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DISCLOSING CYBERATTACKS
[SOURCE: The Hill, AUTHOR: Gautham Nagesh]
Securities and Exchange Commission Chairman Mary Schapiro says public companies must disclose cyber attacks or risk factors that may be relevant to investors. Chairman Schapiro responded this week to a letter last month from Senate Commerce chairman Jay Rockefeller (D-WV) and several Senate Democrats asking the SEC to clarify that firms must disclose any network breach that could jeopardize the firm's intellectual property or trade secrets. In her response Chairman Schapiro argued existing disclosure requirements under federal securities law require firms to disclose risks and events that a reasonable investor would consider important to an investment decision. She noted there is some flexibility in how the rules are administered. "Whether a company is required to provide risk factor disclosure regarding potential cyber attacks, including the potential financial or reputational impacts of the attacks, will depend on the facts and circumstances of the company, and the determination of various factors, including the probability of the risk occurring and the magnitude of the risks," Chairman Schapiro wrote. She said the SEC generally considers whether information would impact an investment decision when enforcing its disclosure requirements. For example, if a firm's trade secrets were breached in a cyber attack, it may be required to disclose the effect of the breach on its operations.
benton.org/node/76799 | Hill, The
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CYBERSECURITY
[SOURCE: National Public Radio, AUTHOR: Tom Gjelten]
A long-standing debate within the Obama Administration over how to characterize the cyberthreat has complicated the US effort to lay out a government-wide cybersecurity strategy. At issue is whether the nation faces the prospect of cyberwar and needs to prepare for it. The Pentagon says yes. Howard Schmidt, the White House coordinator for cybersecurity, sees such talk as "hype" and rejects the "cyberwar" term. "My father was in a war, my son has been in a war, I've been in a war, and this is not what we're going through right now," Schmidt said. "There are a whole lot of ramifications about using that term in any context, and even more in using the term 'cyberwar.'" Schmidt argues that the cyberattacks being carried out currently against U.S. government and private computer networks fall under the categories of cybercrime, espionage and the theft of intellectual property.
benton.org/node/76808 | National Public Radio
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INTERNET

CENSUS BLOCK BROADBAND DATA
[SOURCE: Department of Justice, AUTHOR: Gene Kimmelman]
In this ex parte filing, the United States Department of Justice, Antitrust Division briefly responds to the Federal Communications Commission’s February 8, 2011, Notice of Proposed Rulemaking in the Modernizing the FCC Form 477 Data Program proceeding. In the NPRM the FCC seeks comment regarding its collection of broadband and local telephone networks and services data. The FCC asks, among other things, whether additional localized data concerning specific services offered and actual prices charged for those services would be useful in evaluating issues related to competition.
In general, the Department believes that the FCC will be better able to compile the information necessary to evaluate more precisely the status of competition among service providers if the FCC obtains specific data regarding services provided within particular census blocks, and the net effective pricing for those services within the same blocks. Such evaluations will assist the FCC when it makes decisions such as whether to make spectrum and other resources available to facilitate entry by new competitors, or whether to permit, as consistent with the public interest, a proposed merger by two competitors. In addition, the data may also be valuable to the Department, which also is responsible for evaluating competition issues in the telecommunications industry. Thus, collection of census block data, to the extent practical and not overly burdensome, will yield information that is important and beneficial in promoting competition.
benton.org/node/76786 | Department of Justice
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WORLD IPV6 DAY
[SOURCE: NetworkWorld, AUTHOR: Carolyn Duffy Marsan]
A surge of IPv6-based Web traffic began flowing over the Internet June 8 when World IPv6 Day began, according to data gathered by Arbor Networks. Arbor released some initial findings at 9 a.m. EDT that showed a sharp rise in HTTP traffic as more than 400 websites including Google, Facebook, and Yahoo began supporting IPv6 in production mode as part of the ongoing World IPv6 Day experiment. One good sign is that native IPv6 traffic appears to be rising faster than tunneled traffic during the IPv6 experiment, Arbor says. "For the first two or three hours after World IPv6 Day began, the native IPv6 traffic went from 5 percent of the overall IPv6 traffic to plateau at around 30 percent to 35 percent of all IPv6 traffic," Malan says. `"Native IPv6 traffic going up is a good sign." Malan says it's still too early to understand all of the IPv6 traffic patterns that are occurring during the World IPv6 Day experiment. "We're so early into this. None of us have had the chance to dig into the data in a meaningful fashion," he says. "One of the things we want to find out is how many clients are enabled right now for IPv6 content."
benton.org/node/76791 | NetworkWorld | Washington Post | The White House | NTIA
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CONCERNS IN KC
[SOURCE: Kansas City Business Journal, AUTHOR: Alyson Raletz]
As Google engineers its ultra-high-speed Internet projects in the Kansas Cities, KCK Mayor Joe Reardon expressed concerns that not everyone in his city will be able to take advantage of the service when it goes live in 2012. The conduit system that will connect directly to homes and businesses will thrive on participation and use, raising red flags for residents who may not be able to afford Google’s service, even if prices are as competitive as expected, said Mayor Reardon, officially mayor/CEO of the Unified Government of Wyandotte County/Kansas City, Kansas. Although Google’s Internet will cover the entire city and “open up access,” Mayor Reardon said he’s still worried about “removing barriers to access” and cited a recent dialogue with the state of Kansas. The Kansas Department of Commerce has its own broadband initiative aiming federal dollars at rural parts of the Sunflower State. Mayor Reardon said he is looking to persuade state officials to assist residents in economically distressed parts of the city with affordability. “The marketplace does not deploy as quickly as a city like mine would want,” Mayor Reardon said, pointing specifically at the more impoverished sections of the city, where current Internet access and use is limited.
A cheerleader for Google, Mayor Reardon plugged the economic development benefits that Google’s infrastructure would bring to the region. Reardon called on leaders in Kansas City, Kansas and Kansas City, Missouri to heavily market Google as a signature piece for the region, referring to a discussion with KCMO Mayor Sly James about unifying the cities’ efforts.
benton.org/node/76782 | Kansas City Business Journal
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CNAS REPORT
[SOURCE: nextgov, AUTHOR: Joseph Marks]
Congress should pass laws prohibiting American corporations from giving autocratic regimes the private information of anti-government protesters and force them to periodically disclose any requests for such data to the US government, the Center for a New American Security argues in a new report. The CNAS report on Internet Freedom also recommends that the government relax export controls on circumvention technology and other tools that dissidents might use to stay online as they organize protests and criticize their governments. The US government should also "educate companies on the precise nature of export control restrictions so that companies do not over-comply and deny legal technologies to dissidents abroad," the national security-focused think tank said.
benton.org/node/76806 | nextgov
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WIRELESS/SPECTRUM

PUBLIC SAFETY SPECTRUM BILL ADVANCES
[SOURCE: US Senate Commerce Committee, AUTHOR: Press release]
The Senate Commerce Committee approved the Public Safety Spectrum and Wireless Innovation Act (S 911) by a vote of 21-4. The bill would help build a nationwide communications network for first responders. The bill allocates the D block of spectrum, reclaimed from broadcasters in the digital television transition, to a public safety network rather than auctioning the spectrum for a public-private partnership. The bill allows broadcasters and other spectrum licensees to voluntarily remit back unused portions of the airwaves. The freed up spectrum would be re-auctioned for commercial wireless broadband use in exchange for a portion of the proceeds through “incentive auctions.” The costs to build the public safety network will be offset by the proceeds of incentive auctions, and the surplus revenue will go toward deficit reduction.
During the markup, detractors focused on what they see as the unnecessarily high costs of building the public safety network through the approach in the bill, which gives away spectrum to public safety agencies rather than auctioning it to commercial providers, who could then share their networks with emergency groups. Those who voted against the bill described it as a squandered opportunity to reduce the deficit through auction revenue.
Key Provisions of the Public Safety Spectrum and Wireless Innovation Act:
Establish a framework for the deployment of a nationwide, interoperable, wireless broadband network for public safety.
Allocate 10 megahertz of spectrum, known as the “D-block,” to public safety.
Direct the FCC to establish standards that allow public safety officials, when not using the network, to lease capacity on a secondary, but preemptible basis to non-public safety entities.
Provide the FCC with incentive auction authority, which allows existing spectrum licensees to voluntarily relinquish their airwaves in exchange for a portion of the proceeds of the commercial auction of their spectrum. This provides new incentives for efficient use of spectrum. In addition, the funds from these incentive auctions, in conjunction with funds from the auction of other specified spectrum bands, and funds earned from leasing the public safety network on a secondary basis, will be used to fund the construction and maintenance of the nationwide, interoperable, wireless broadband public safety network.
Direct the National Science Foundation and the National Institute of Standards and Technology to conduct cutting edge research into transformative wireless technologies.
Surplus revenue from spectrum auctions, estimated to be more than $10 billion, will be directed to the U.S. Treasury for deficit reduction.
benton.org/node/76744 | US Senate Commerce Committee | Multichannel News | The Hill | White House | Public Knowledge | Washington Post | B&C - more reaction
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NASUCA OPPOSES AT&T/T-MOBILE
[SOURCE: National Association of State Utility Consumer Advocates, AUTHOR: Charles Acquard]
In a filing at the Federal Communications Commission, the National Association of State Utility Consumer Advocates says AT&T's proposed acquisition of T-Mobile is not in the public interest. NASUCA backs petitions to deny the transition filed by the New Jersey Division of Rate Counsel and Utility Consumers’ Action Network.
benton.org/node/76788 | National Association of State Utility Consumer Advocates
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CPUC VOTE ON AT&T/T-MOBILE DEAL
[SOURCE: Los Angeles Times, AUTHOR: Marc Lifsher]
With a majority of its members now appointees of Gov Jerry Brown (D-CA), the California Public Utilities Commission is poised to end its customary hands-off approach to regulating wireless carriers by ordering an investigation into AT&T's proposed $39-billion takeover of T-Mobile USA. A June 9 vote on whether to launch a full-fledged investigation is the first major test of the newly reconstituted panel's willingness to take a more active role on behalf of consumers in the industries it regulates. Findings could lead the commission to recommend additional conditions — shorter contracts, lower termination fees, fines for dropped calls, for example — that might not be imposed by the Federal Communications Commission and the U.S. Justice Department, both of which must approve the deal. Lawyers said it's unclear whether the PUC has authority to block the combination in California, the nation's largest telecom market. A departure from past practice wasn't something the industry had anticipated because some believe that the PUC's jurisdiction over telecom was "a bit muddy," said Samuel Kang, general counsel of the Greenlining Institute, which represents working poor and minority communities. Kang said the commission's new attitude could be traced partly to Brown's appointment of Catherine Sandoval, a Santa Clara University law professor who specializes in telecommunications issues. The agency's previous telecom expert, he said, was not only "pro-industry but also anti-consumer." Commissioner Sandoval said at a May 26 public meeting that an examination of the deal should look at issues of competitiveness, technology and product availability. The five-member PUC voted unanimously then to ask staff to prepare the recommendation for Thursday's vote.
benton.org/node/76817 | Los Angeles Times
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SUPER WI-FI IN DOUBT
[SOURCE: Politico, AUTHOR: Eliza Krigman]
The Federal Communications Commission’s ballyhooed plan to provide a new source of wireless airwaves for a “super Wi-Fi” network could become a casualty of two initiatives pending in Congress: one to build a new communications system for public safety agencies and another to auction off wireless spectrum to the private sector. The FCC voted in the fall to allow companies such as Microsoft, Google and Intel to build new devices that can surf the Web using idle TV spectrum known as “white spaces.” Proponents of white spaces have been lobbying the commission to create such a network for the better part of a decade. But now the hopes of the agency, and the companies that support the plan, could be dashed as Congress works to repurpose spectrum for mobile broadband and raise revenue to reduce the deficit. “We support Senate Commerce [Committee] Chairman Jay Rockefeller’s objective of creating an interoperable, wireless national public safety network,” Richard Whitt, senior policy counsel to Google, said. “At the same time, we'll continue working closely with his staff and others to ensure that the many consumer benefits resulting from the deployment of TV white spaces technologies remain protected as well.” While white spaces are not actually part of the Wi-Fi network currently utilized by consumers, FCC Chairman Julius Genachowski has championed white spaces as infrastructure that can create a super Wi-Fi network that would expand high-speed Internet across the country and help create jobs.
benton.org/node/76811 | Politico
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DATA ROAMING REPORT
[SOURCE: Organization for Economic Co-operation and Development, AUTHOR: Agustín Díaz-Pinés]
Regulators and policy makers should boost competition among mobile telephone operators to cut the high prices being charged for international data roaming, according to a new OECD report. Analysis of pricing plans at 68 operators in the 34 OECD countries points to a strong case for new consumer protection and empowerment measures. “Current pricing levels indicate that there is, in general terms, either insufficient retail or wholesale competition,” says the report.
The OECD compared a variety of data roaming plans based on the amount of data users could send or receive when abroad. For 1Mb of data, for example, the equivalent of sending 10 photos, the average price by country across the OECD is USD 9.48 (based on purchasing power parity). Canadians travelling abroad pay the most (USD 24.61), followed by Americans (USD 22.06) and Mexicans (USD 19.85). Greeks abroad pay the least (USD 4.17), followed by people from Iceland (USD 4.42) and Luxembourg (USD 4.46). The wide difference in prices, according to the report, can be explained by Greek mobile phone companies being charged less by wholesale operators than Canadian operators and passing those savings onto customers. Or it could reflect greater competition in the Greek retail roaming market than in Canada.
benton.org/node/76717 | Organization for Economic Co-operation and Development | WashPost
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VERIZON-US CELLULAR SPECTRUM SWAP
[SOURCE: Fierce, AUTHOR: Phil Goldstein]
In an unusual spectrum swap, Verizon Wireless is asking the Federal Communications Commission to allow it to swap some of its 700 MHz spectrum licenses with US Cellular in exchange for certain 1900 MHz PCS licenses. The transfer, if approved, could help US Cellular expand its forthcoming LTE network.
According to the filing, Verizon is requesting that it be allowed to swap 13 lower 700 MHz B-Block licenses and five lower 700 MHz C-Block licenses in Idaho, Illinois, Indiana, Kansas, Nebraska, Oklahoma, Oregon and Washington. In exchange, US Cellular would give Verizon two 10 MHz PCS licenses in Illinois and Indiana. The PCS licenses cover 14 counties in five cellular market areas, or CMAs, and the 700 MHz licenses cover 95 counties in 18 CMAs.
Verizon, which paid $4.7 billion for its 700 MHz spectrum in 2008, said the PCS licenses will help it expand capacity and improve service, and U.S. Cellular said the 700 MHz frequencies will help it expand into new markets and improve capacity and service. The transfer is notable because of U.S. Cellular's accelerated LTE deployment plans. The company, which had originally planned to deploy the next-generation technology in 2012, said in May it will deploy LTE in 24 markets by November, covering approximately 25 percent to 30 percent of its total subscriber base. The company will outfit around 1,250 cell sites with LTE.
benton.org/node/76718 | Fierce
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CONTENT

MICROSOFT AND NETFLIX?
[SOURCE: CNNMoney, AUTHOR: Kevin Kelleher]
Microsoft CEO Steve Ballmer is succeeding at wringing profits from PC software that many had written off in the age of cloud computing. But he's not very good at finding new sources of growth as cloud computing takes center stage. Which is why the answer to Microsoft's problems isn't firing Ballmer, but in bringing on a co-CEO. Ballmer is the consummate chief operating officer, overseeing the day-to-day operations of a tech giant facing tough competition on many fronts. He is not a visionary, he's blind to the ways that technology and markets are evolving. Bill Gates served as a good counterbalance, then Ray Ozzie tried to fill that role for a few years. But Microsoft's culture is so entrenched that it needs a visionary with a stubborn streak and a track record of success as a CEO.
Who could fill this role? Some names have been tossed around, but the best answer may be sitting on Microsoft's own board. Reed Hastings has shepherded Netflix to a $14 billion market value, defying odds and overcoming obstacles to make Netflix a key player in cloud-based content. Microsoft has $50 billion in cash lying around, so it could buy Netflix and still have plenty enough left to buy Nokia if it wanted. Buying Netflix and installing Hastings as co-CEO would position Microsoft to return to the center of the tech industry. Netflix could speed the Xbox' transition from a gaming console to a mainstream device connecting TVs to the Internet. Its success in creating a popular, immersive app for tablets could strengthen the appeal of mobile carriers considering Windows Phone 7 as a platform. Microsoft's investment in Facebook could help Netflix find a strong presence in that social network. And Hastings, who has a deep understanding about the opportunities and obstacles facing cloud-based content, could focus on pushing Microsoft into the future while Ballmer oversees the traditional PC-software businesses.
Of course, the move might distress Netflix customers, who would fear the company getting lost inside Microsoft's rigid corporate culture. But the question facing Microsoft shareholders in recent months is, what is the best way for the company to turn the stock price around? The answer to that question isn't Bill Gates returning. It's Microsoft buying Netflix and Ballmer sharing the CEO spot with Hastings.
benton.org/node/76707 | CNNMoney
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NETFLIX IS A PHENOMENON
[SOURCE: MediaPost, AUTHOR: Joe Mandese]
Netflix's online streaming service is rapidly emerging as an important gateway for accessing television programming, according to a tracking study revealed by a top broadcast network executive during the most recent edition of MPG's Collaborative Alliance meeting in New York City. The executive, CBS research chief Dave Poltrack, used the term "phenomenon" several times to describe the rapid adoption of Netflix, especially among an important segment of the TV audience known as early adopters of next generation media platforms. The research, which was part of a series of focus group studies CBS conducted in its Las Vegas testing facility, Television City, indicates that 43% of the early adopters - what Poltrack terms "fully connected" TV viewers who already subscribe to digital TV and broadband services, now subscribe to Netflix. "Last summer, that number wasn't even large enough to have put it down as one of the choices" CBS asked its focus group respondents, he said, adding, "This is a real phenomenon."
benton.org/node/76705 | MediaPost
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INTERNET PIRACY
[SOURCE: New York Times, AUTHOR: Editorial staff]
[Commentary] Online piracy is a huge business. A recent study found that Web sites offering pirated digital content or counterfeit goods, like illicit movie downloads or bootleg software, record 53 billion hits per year. That robs the industries that create and sell intellectual products of hundreds of billions of dollars. The problem is particularly hard to crack because the villains are often in faraway countries. Bad apples can be difficult to pin down in the sea of Web sites, and pirates can evade countervailing measures as easily as tweaking the name of a Web site. Commendably, the Senate Judiciary Committee is trying to bolster the government’s power to enforce intellectual property protections. Last month, the committee approved the Protect IP Act, which creates new tools to disrupt illegal online commerce. The bill is not perfect. Its definition of wrongdoing is broad and could be abused by companies seeking to use the law to quickly hinder Web sites. Some proposed remedies could also unintentionally reduce the safety of the Internet. Senator Ron Wyden put a hold on the bill over these issues, which, he argued, could infringe on the right to free speech. The legislation is, therefore, in limbo, but it should be fixed, not discarded.
benton.org/node/76820 | New York Times
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THE CLOUD AND PIRACY
[SOURCE: Reuters, AUTHOR: Foo Yun Chee]
Services developed by Apple Inc and Google for people to store photos, music and data online may do more to combat online piracy than regulation can, said Victoria Espinel, the coordinator of U.S. intellectual property enforcement. She said corporate innovation was often more effective than law enforcement or other rules, which are sometimes applied inappropriately. "The U.S. government doesn't need to pick winners and losers and the last thing we should think about doing is messing up the Internet with inappropriate regulation," she told the World Copyright Summit in Brussels. "In order for the Internet to be as productive and compelling as possible, we need to have active engagement from companies that interact with and benefit from Internet commerce," she said.
benton.org/node/76797 | Reuters
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TV CONTENT ONLINE
[SOURCE: AdWeek, AUTHOR: DM Levine]
Executives from Disney, Turner, and Comcast were in unanimous agreement that we are only two years away from 75 percent of TV content being available online and on mobile devices. At the Elevate Video Advertising Summit in New York, Matt Strauss from Comcast Interactive Media, Jeremy Legg from Turner, and David Preshlack of Disney and ESPN predicted that TV "everywhere" was imminent, and that in the same time frame the networks will be almost completely agnostic about where and when their video content is being viewed. There are hurdles, of course. Negotiating broadcast rights across platforms is a big one, as are the looming threat of broadband usage caps and fees. Nonetheless, to hear these executives tell it, universal TV is an inevitability. As the line between traditional TV and Web video blur, it will no longer make sense for networks to distinguish between TV and every other video-capable device. This means migrating not only single programs to the Web—along the lines of what Hulu, Apple, and others do now—but also letting viewers access traditional linear television from mobile phones, iPads, and computers.
benton.org/node/76735 | AdWeek
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PRIVACY

FACEBOOK UNDER SCRUTINY IN EUROPE
[SOURCE: Bloomberg, AUTHOR: Stephanie Bodoni]
Facebook will be probed by European Union data-protection regulators over a feature that uses face-recognition software to suggest people’s names to tag in pictures without their permission. A group of privacy watchdogs drawn from the EU’s 27 nations will study the measure for possible rule violations, said Gerard Lommel, a Luxembourg member of the so-called Article 29 Data Protection Working Party. Authorities in the UK and Ireland said they are also looking into the photo-tagging function on the world’s most popular social-networking service. “Tags of people on pictures should only happen based on people’s prior consent and it can't be activated by default,” said Lommel. Such automatic tagging suggestions “can bear a lot of risks for users” and the European data-protection officials will “clarify to Facebook that this can't happen like this.” Facebook said that “Tag Suggestions” are available in most countries after being phased in over several months. When a Facebook user adds a photo to their page, the feature uses facial-recognition software to suggest names of people in the photo to tag based on pictures in which they have already been identified. Before the feature was rolled out, users could tag pictures manually without permission from their Facebook friends.
benton.org/node/76713 | Bloomberg | paidContent.org | Reuters
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PRIVACY
[SOURCE: AdAge, AUTHOR: Edmund Lee]
The ad industry's push to adopt more stringent codes around how it targets advertising to people online has been gaining wider acceptance. A coalition of trade groups announced that 100 companies have agreed to comply with a program to self-regulate their digital tracking practices. The roster of participating companies include major online advertisers AT&T, Verizon, Dell and Bank of America, as well as most of the major ad networks, including AOL, Google, Microsoft, Yahoo and ValueClick. Ad companies Cobalt, MiG and Omnicom Group are also listed as taking part in the effort. Contradicting earlier reports that only a small number of advertisers had signed on, the coalition claimed that adoption of the program was increasing every month. So far, the DAA says 2 trillion ads have featured the opt-out icon since the program launched last November, based on reporting from the three vendors providing the icon, Evidon, Truste and DoubleVerify. But that number doesn't correlate with ComScore's figures, which say that only 1.99 trillion ads were served online in U.S. during the same period. Despite the increased adoption of the icon, a significant portion of the largest advertisers have not yet signed into the program. Of the top 200 advertisers as measured by ComScore, 181 have not taken part in the industry effort, including the second largest online advertiser, Experien Interactive, which markets sites such as Free Credit Report and Price Grabber. Other big advertisers currently not participating include Progressive, Groupon, Netflix and Weight Watchers. It's not clear, however, how actively engaged these companies are in behavioral targeting.
benton.org/node/76729 | AdAge
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BROADCASTING

MORE ON FAIRNESS DOCTRINE
[SOURCE: House of Representatives Commerce Committee, AUTHOR: Chairman Fred Upton (R-MI), Chairman Greg Walden (R-OR)]
Elated that Federal Communications Commission Chairman Julius Genachowski has agreed to remove the “Fairness Doctrine” and several related rules from the Code of Federal Regulations, the Chairmen of the House Commerce Committee and House Communications Subcommittee now want to know when. “We are heartened by your continued opposition to the Fairness Doctrine because of its chilling effects on free speech and the free flow of ideas,” Chairmen Upton and Walden wrote in a letter to Chairman Genachowski. “When precisely will you eliminate the Fairness Doctrine and related regulations? What is involved? Do you have the support of your fellow commissioners? How long will it take?” They added:
“We are also pleased by your commitment in the letter to abide by President Obama’s Executive Order 13563 on Improving Regulation and Regulatory Review, even though it does not bind independent agencies such as the FCC. A thorough review of the Commission’s regulations and the repeal of outdated rules will unleash private sector investment, spur growth and create jobs for the American people. Unfortunately, the path forward remains unclear. We have yet to see a plan from your agency on how it will implement the January 2011 order and begin eliminating other outmoded and economically harmful regulations. When will you begin eliminating other antiquated rules that stifle investment and harm innovation? What concrete steps will you take to reduce the burden on small businesses, who are today’s primary engine for jobs growth? How many jobs will you create through your deregulatory efforts? Unnecessarily burdensome regulations are never appropriate, but eliminating them quickly is all the more important in light of the continued fiscal distress we find our country in."
They requested a response by close of business Friday, June 10, 2011.
benton.org/node/76731 | House of Representatives Commerce Committee
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HEALTH

GROUPS RECOMMENDS MEANINGFUL USE DELAY
[SOURCE: ModernHealthcare.com, AUTHOR: Joseph Conn]
A work group of the federally chartered Health Information Technology Policy Committee is calling for a one-year delay in the scheduled implementation of Stage 2 meaningful-use criteria for healthcare organizations that will comply with the Stage 1 requirements this year. In a 12-page draft letter to Dr. Farzad Mostashari, head of the Office of the National Coordinator for Health Information Technology and chairman of the Health IT Policy Committee, the meaningful use work group states that sticking to the original timeline of implementing Stage 2 by 2013 "poses a nearly insurmountable timing challenge for those who attest to meaningful use in 2011."
Under the American Recovery and Reinvestment Act of 2009, hospitals, office-based physicians and other eligible professionals can receive federal incentive payments if they demonstrate that they are meaningfully using certified electronic health-record systems according to federal criteria. Hospitals and eligible professionals began receiving payments from the program this year under Stage 1 criteria.
In the letter, the work group supports the original concept of an "escalator" in the criteria for Stage 2 to ensure that "the (meaningful use) bar continues to rise over time in order for the country to realize the full benefits of health IT and to support the information needs of health reform.” But the escalator's pace and the speed with which the industry can adapt to new criteria became an issue, according to the work group. The group's final Stage 2 recommendations were based on seven public hearings, testimony from nearly 100 people and 422 submissions of public comments.
benton.org/node/76723 | ModernHealthcare.com | read the recommendations
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INVESTING IN INNOVATIONS
[SOURCE: Department of Health and Human Services, AUTHOR: Press release]
The Office of the National Coordinator for Health Information Technology (ONC) announced the Investing in Innovations (i2) Initiative – a bold new program designed to spur innovations in health IT. The program centers on prizes and competitions to accelerate the development of solutions and communities around key challenges in health IT.
The initiative is the first Administration-wide program using prizes and challenges to advance an agency's mission made possible by the America COMPETES Reauthorization Act of 2010, signed into law by President Obama on Jan. 4, 2011. The Act invests in innovation through research and development and seeks to improve the competitiveness of the United States.
As part of the initiative's rollout, ONC has awarded nearly $5 million to the Capital Consulting Corporation (CCC) and Health 2.0 LLC, to fund projects supporting innovations in research and encouraging health IT development through open-innovation mechanisms like prizes and challenges. The i2 Initiative will consult stakeholders across the health care sector including hospitals, doctors, consumers, payers, states, employers, advocates, and relevant federal agencies to obtain direct input on execution and to build partnerships. The core of the i2 Initiative is an effort to use prizes and challenges to facilitate innovation and obtain solutions to identified health IT challenges. Recognizing the promise of prizes and challenges, the President has called on agencies to promote innovation by using such innovation tools to address intractable problems. The use of prizes and competitions is widely regarded as a powerful tool to attract innovators from all walks of life to address hard problems with the added benefit of only rewarding best-in-class work. The approach makes possible rapid response to emerging issues that are difficult to address with more traditional funding approaches.
benton.org/node/76789 | Department of Health and Human Services
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JOURNALISM

FCC MEDIA STUDY DUE TODAY
[SOURCE: New York Times, AUTHOR: Jeremy Peters, Brian Stelter]
An explosion of online news sources in recent years has not produced a corresponding increase in reporting, particularly quality local reporting, a Federal Communications Commission study of the media has found. Coverage of state governments and municipalities has receded at such an alarming pace that it has left government with more power than ever to set the agenda and have assertions unchallenged, concluded the study, which is to be released on June 9. “In many communities, we now face a shortage of local, professional, accountability reporting,” said the study, which was written by Steven Waldman, a former journalist for Newsweek and U.S. News and World Report. “The independent watchdog function that the Founding Fathers envisioned for journalism — going so far as to call it crucial to a healthy democracy — is in some cases at risk at the local level.” Waldman is to issue a number of recommendations, none binding. Those include making actual in-the-field reporting a part of the curriculum at journalism schools, steering more government advertising money toward local instead of national media and changing the tax code to encourage donations to nonprofit media organizations.
benton.org/node/76822 | New York Times | Associated Press
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2011 MIRROR AWARDS
[SOURCE: Syracuse University, AUTHOR: Press release]
The Newhouse School presented seven awards at the fifth annual Mirror Awards luncheon honoring excellence in media industry reporting. The winners, chosen by a group of journalists and journalism educators, are:
Best Single Article, Traditional Media: Gabriel Sherman, “Chasing Fox” (New York Magazine) -- The examined how the News Corp-owned network has affected the journalism at CNN and MSNBC.
Best Single Article, Digital Media: Jim Hopkins, “All Shook Up” (Gannett Blog)
Best Profile, Traditional Media: Ken Auletta, “The Networker” (The New Yorker)
Best Profile, Digital Media: Joel Meares, “The Biggest Fish in Albany?” (Columbia Journalism Review)
Best Commentary, Traditional Media: James Wolcott (Vanity Fair)
Best Commentary, Digital Media: Eric Alterman (Center for American Progress) -- Alterman disturbed the air of industry self-congratulations by urging the audience to "stop treating Fox News as though it's news. It's not." Applause was mixed with disapproving murmurs after he added that those who take Fox seriously "allow it to corrupt the news ecosystem."
Best In-depth Piece, Traditional Media: Mary Van de Kamp Nohl, “Paper Money” (Milwaukee Magazine) -- She showed how the publisher of the Milwaukee Journal Sentinel impoverished many of its employees by encouraging them to buy its stock -- which lost nearly 98% of its value after the company went public in 2003. "They hired a PR director to handle me," she said. "It's a sad commentary on the priorities of this particular business."
In addition, the school honored Brian L. Roberts, chairman and CEO of Comcast, with the Fred Dressler Achievement Award, and Dennis Crowley ’98 and Naveen Selvadurai, co-founders of Foursquare, with the i-3 award for impact, innovation and influence. Jeffrey Bewkes, chairman and CEO of Time Warner Inc., presented the Dressler Award. Ralph Roberts, founder of Comcast and chairman emeritus of its board of directors, accepted the award on Brian Roberts’ behalf. Clay Shirky, new media expert and author of “Here Comes Everybody: The Power of Organizing Without Organizations,” presented the i-3 award.
The network was also central to the story that won the best single article award for traditional media, Gabriel Sherman's "Chasing Fox" -- a story for New York Magazine that examined how the News Corp-owned network has affected the journalism at CNN and MSNBC.
benton.org/node/76720 | Syracuse University | Deadline New York
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POLICYMAKERS

GOP BLOCKING BRYSON
[SOURCE: The Hill, AUTHOR: Vicki Needham]
Senate Republicans continued mounting their opposition to Commerce Secretary nominee John Bryson. Sen. John Barrasso (R-WY), vice chairman of the Senate Republican Conference, is circulating a memo which says the Commerce Department "needs an economic leader, not an environmental activist." "Mr. Bryson is not the right person for this job. America needs a Commerce Secretary who is more focused on free trade -- not cap and trade -- especially with our current economic challenges," said Sen Barrasso. The memo cited Bryson's founding of the Natural Resources Defense Council (NRDC) and moderate support of cap-and-trade legislation pursued by Reps. Henry Waxman (D-CA) and Ed Markey (D-MA) three years ago as reasons to oppose the nomination. "The president should nominate a pro-growth business leader who will help the department fulfill its mission of making American businesses more innovative at home and more competitive abroad." By nominating Bryson, a former CEO with extensive ties to corporate America, President Barack Obama continued his aggressive courtship of the business community, which began almost immediately after Democrats lost their House majority last year. The fight over trade represents the first hurdle for Bryson’s nomination. The Administration supports free trade agreements with Korea, Colombia and Panama, but has refused to send them to Congress until Republicans agree to extend the Trade Adjustment Assistance (TAA) program, which provides healthcare and economic assistance to workers who lose their jobs because of increased trade. Business groups, including the U.S. Chamber of Commerce, have called for the approval of the trade agreements as well as the assistance program and other trade preferences to be approved. Senate Republicans are saying they want the trade deals and TAA to be handled separately.
benton.org/node/76739 | Hill, The
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TECHNOLOGICAL ADVISORY COUNCIL
[SOURCE: Federal Communications Commission, AUTHOR: Public Notice]
Effective June 10th, 2011 the Federal Communications Commission's Technical Advisory Council (TAC) will be reestablished for a period of two years. The Council, comprised of a diverse array of leading technical experts, helps to provide the technical expertise the Commission needs to identify important areas of innovation and develop informed technology policies supporting America’s competitiveness in the global economy. The TAC is helping the Commission to continue the momentum of ideas and recommendations in the National Broadband Plan, such as how broadband communications can be part of the solution for the delivery and cost containment of health care, for energy and environmental conservation, for education innovation and in the creation of jobs.
On April 25th, 2011, the TAC publicly released a set of eight near term recommendations to the Commission focused on opportunities to promote innovation and further broadband deployment. These recommendations included among others; identifying cities exemplifying “best practices” in broadband deployment, facilitating the use of federal lands for broadband infrastructure deployment, establishing quality measures for broadband deployment, and facilitating coordination of access to buried infrastructure. In addition, other ideas were targeted for further development on subjects including broadband deployment, the transition to IPv6, infrastructure sharing opportunities and critical technology transitions.
Tom Wheeler, Managing Director, Core Capital Partners, serves as Chairman of the Council. Walter Johnston, Chief of the Electromagnetic Compatibility Division, serves as the Designated Federal Officer. Julius Knapp, Chief of the Office of Engineering and Technology is the Alternate Designated Federal Officer.
benton.org/node/76733 | Federal Communications Commission
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FCC Study Finds That Local Reporting Has Waned

An explosion of online news sources in recent years has not produced a corresponding increase in reporting, particularly quality local reporting, a Federal Communications Commission study of the media has found.

Coverage of state governments and municipalities has receded at such an alarming pace that it has left government with more power than ever to set the agenda and have assertions unchallenged, concluded the study, which is to be released on June 9. “In many communities, we now face a shortage of local, professional, accountability reporting,” said the study, which was written by Steven Waldman, a former journalist for Newsweek and U.S. News and World Report. “The independent watchdog function that the Founding Fathers envisioned for journalism — going so far as to call it crucial to a healthy democracy — is in some cases at risk at the local level.” Waldman is to issue a number of recommendations, none binding. Those include making actual in-the-field reporting a part of the curriculum at journalism schools, steering more government advertising money toward local instead of national media and changing the tax code to encourage donations to nonprofit media organizations.

Internet Piracy and How to Stop It

[Commentary] Online piracy is a huge business. A recent study found that Web sites offering pirated digital content or counterfeit goods, like illicit movie downloads or bootleg software, record 53 billion hits per year. That robs the industries that create and sell intellectual products of hundreds of billions of dollars. The problem is particularly hard to crack because the villains are often in faraway countries. Bad apples can be difficult to pin down in the sea of Web sites, and pirates can evade countervailing measures as easily as tweaking the name of a Web site.

Commendably, the Senate Judiciary Committee is trying to bolster the government’s power to enforce intellectual property protections. Last month, the committee approved the Protect IP Act, which creates new tools to disrupt illegal online commerce. The bill is not perfect. Its definition of wrongdoing is broad and could be abused by companies seeking to use the law to quickly hinder Web sites. Some proposed remedies could also unintentionally reduce the safety of the Internet. Senator Ron Wyden put a hold on the bill over these issues, which, he argued, could infringe on the right to free speech. The legislation is, therefore, in limbo, but it should be fixed, not discarded.

Fortify Copyrights, Europe Artists Say

European artists called for stricter enforcement of European Union copyright rules and urged the European Commission to make Internet service providers play a greater role in the process. Creative-industry players from songwriters to TV companies are eager to influence the current overhaul of the EU's copyright rules. Last month, the commission set out its intellectual-property strategy covering everything from industrial patents to music downloads as it tried to find cohesion among rules across 27 countries and adjust laws made for the age of vinyl to the Internet era.

California Public Utilities Commission set to vote on investigating AT&T deal with T-Mobile

With a majority of its members now appointees of Gov Jerry Brown (D-CA), the California Public Utilities Commission is poised to end its customary hands-off approach to regulating wireless carriers by ordering an investigation into AT&T's proposed $39-billion takeover of T-Mobile USA.

A June 9 vote on whether to launch a full-fledged investigation is the first major test of the newly reconstituted panel's willingness to take a more active role on behalf of consumers in the industries it regulates. Findings could lead the commission to recommend additional conditions — shorter contracts, lower termination fees, fines for dropped calls, for example — that might not be imposed by the Federal Communications Commission and the U.S. Justice Department, both of which must approve the deal. Lawyers said it's unclear whether the PUC has authority to block the combination in California, the nation's largest telecom market. A departure from past practice wasn't something the industry had anticipated because some believe that the PUC's jurisdiction over telecom was "a bit muddy," said Samuel Kang, general counsel of the Greenlining Institute, which represents working poor and minority communities. Kang said the commission's new attitude could be traced partly to Brown's appointment of Catherine Sandoval, a Santa Clara University law professor who specializes in telecommunications issues. The agency's previous telecom expert, he said, was not only "pro-industry but also anti-consumer." Commissioner Sandoval said at a May 26 public meeting that an examination of the deal should look at issues of competitiveness, technology and product availability. The five-member PUC voted unanimously then to ask staff to prepare the recommendation for Thursday's vote.

Carriers Sweat as Texting Cools Off

Growth in the volume of text messaging is slowing sharply, just as new threats emerge to that lucrative source of wireless carrier profits. While U.S. cellphone users sent and received more than 1 trillion texts in the second half of 2010, according to CTIA, a wireless industry trade group, that was just an 8.7% increase from the prior six months.

It was the slimmest gain since texting exploded last decade. Text traffic will come under more pressure in the months ahead. This week, Apple showed off an application that will allow iPhone and iPad owners to bypass carriers and send text messages over the Internet to other people with Apple devices. The challenges posed by alternatives to text messaging reflect the broader changes roiling the wireless industry as carriers scramble to adjust to devices like the iPhone and Android handsets, which give cellphone users more flexibility in how they communicate.