June 2011

California lawmakers defeat bill on Internet privacy

California lawmakers on June 2 rejected an Internet privacy bill for a second time after heavy lobbying from Facebook, Twitter and other social networking sites that objected to more state regulation.

The state Senate rejected SB242, which fell two votes short of the majority needed. The bill, which would have required websites to automatically set personal information to private, also failed a week earlier. Sen. Ellen Corbett (D-San Leandro) had pitched the bill as necessary protection against identity theft and to give parents better control over their children's information online. Companies had argued that Corbett's bill would have forced consumers to make blanket privacy decisions before they even use a service. Most online sites now let users decide to reveal or conceal personal information about what they are doing at any particular time. Technology firms opposed to the bill reported spending $148,218 on lobbyists this year, though not all their reports with the secretary of state's office specifically listed Corbett's bill as a target. That does not include the $682,834 spent by the California Chamber of Commerce, which lobbies on many bills.

FCC Looks to Close Dormant Dockets

The Federal Communications Commission's Consumer & Governmental Affairs Bureau (“CGB”) seeks comment on whether certain docketed FCC proceedings should be terminated as dormant.

By Report and Order released on February 4, 2011, the FCC revised portions of its Part 1 practice and procedural rules and its Part 0 organizational rules to increase the efficiency of FCC decision-making, modernize the agency’s processes in the digital age and enhance the openness and transparency of Commission proceedings for practitioners and the public. The revised rules delegate authority to the Chief, CGB to periodically review all open dockets and, in consultation with the responsible Bureaus or Offices, to identify those dockets that appear to be candidates for termination. The FCC stated that these candidates may include dockets in which no further action is required or contemplated as well as those in which no pleadings or other documents have been filed for several years, but it specified that proceedings in which petitions addressing the merits are pending should not be terminated, absent the parties’ consent. The termination of a dormant proceeding also includes dismissal as moot of any pending petition, motion, or other request for relief that is procedural in nature or otherwise does not address the merits of the proceeding. The FCC directed that a public notice identifying dockets under consideration for termination and affording interested parties an opportunity to comment should be issued before any particular proceeding is terminated. To that end, CGB, in coordination with the responsible Bureaus and
Offices, has identified the dockets for possible termination

The National Broadband Map: a $350 million "boondoggle"?

The United States government's National Broadband Map has been out for three months and hasn't generated much heat—until now. Suddenly advocates from the New America Foundation are posting commentaries calling the project a big disappointment.

"We think that with a few vital improvements, the map could easily become an exemplar of government data transparency as well as an incredibly useful tool for US residents and policymakers," write Benjamin Lennett and Sascha Meinrath on Slate. "But without these improvements, the National Broadband Map runs the risk of becoming a $350 million boondoggle—a map to nowhere filled with inaccurate and useless information." "Map to nowhere"? Ouch. That's a phrase reminiscent of potshots taken at the Obama administration's $7.1 billion broadband stimulus package, sometimes called "broadband to nowhere" by critics. The alleged problems are twofold. First, the map doesn't display information about Internet Service Provider prices. And second, its data on ISP speeds relies heavily on information provided by the companies themselves. "Anyone who's ever checked their connection speed knows that real-life speeds tend to be substantially lower than what you're paying for," they note. The Federal Communications Commission, on whose site the map is posted, was quick to reply to the charges. The criticisms "miss almost entirely the real story regarding broadband data and the FCC, including the National Broadband Map," countered the agency's Steven Rosenberg. NTIA pointed out to us that the stimulus plan authorized "up to" $350 million. That isn't what the map has cost so far. $200 million has been allocated over the next five years, the agency says. The rest has been rerouted to local and statewide broadband projects.

There's quite a lot to chew on in this tussle. The good news is that FCC and NTIA have come through with an open and expandable map of the nation's broadband resources -- and they are working with constructively critical groups who want to make the application much more accurate and useful. This uneasy collaboration could go far. One small suggestion -- perhaps words like "boondoggle" should stay out of future public exchanges. They may only give credence to those who thought that the National Broadband Map should never have been developed in the first place.

Sunstein Encourages FCC, Others to Submit Regulatory Review Plan

Cass Sunstein, who heads the Office of Management and Budget's Office of Regulatory Affairs, told the House Oversight and Investigations Subcommittee that he had not gotten a review regulatory review plan from the Federal Communications Commission for addressing the costs and benefits of its regulations, but was hopeful that would be forthcoming from it and other independent agencies.

A FCC source says commission will implement intent of President Obama's order, but not submit formal plan. Independent agencies like the FCC are not subject to the order. "We are implementing [the executive order's] intent," said an FCC source speaking on background, "but as an independent agency we are not formally submitting a plan," he said. Sunstein said he was encouraging the FCC, FTC and other independent agencies to weigh in, but had, to date, only gotten one page of suggestions from the National Labor Relations Board.

Comscore: RIM’s BlackBerry In Free Fall With No Net In Sight

Six months of U.S. smartphone market share data neatly underscores why Research in Motion is scrambling to get new products out the door: it has tumbled all the way to the third-most prevalent mobile operating system in the U.S. despite commanding a sizable lead in late 2010.

Comscore’s latest market-share numbers paint a grim picture for RIM and its flagship BlackBerry smartphone. Google long ago surpassed RIM to become the leading mobile operating system in the U.S., but RIM has now even fallen behind Apple without Apple having released a significant new phone since the launch of the iPhone 4 last summer. Apple’s edge is quite slight, but it seems likely to expand given that RIM has lost nearly 8 points of share over the last six months, and RIM’s latest BlackBerry 7 phones aren't scheduled to arrive until “this summer.”

Survey Shows Public Uninformed on AT&T/T-Mobile Deal

The No Takeover Project -- a non-profit that seeks to kill the proposed merger of AT&T and T-Mobile USA and counts as members the Rural Cellular Association (RCA), Council for Public Knowledge and Future of Music, among others -- released a survey that it says overwhelmingly shows that cellular customers oppose and AT&T/T-Mobile deal.

While compelling, a close look at the results of the online survey that polled a swath of 1,000 cellular customers from across the country on different carriers appears to be more a split decision, with some consumers changing their attitude towards the deal once they were informed about it. "Not a whole lot of people really know that the deal is out there and the impact of the merger," said Steve Berry, CEO of the RCA. That seems to be the gist of it; consumers just simply are not aware of the deal. According to the survey, just 29 percent of wireless consumers know that AT&T is trying to take over T-Mobile, while 71 percent are unaware of the details of the proposed deal. On the whole, T-Mobile customers appeared to be more aware of the deal than the overall group of consumers. Fully 52 percent of T-Mobile customers know AT&T is trying to take over their provider, and they don't like it. The No Takeover Project writes in a press release that it is because of their ignorance of the deal that wireless consumers nominally support the deal, with 45 percent in support, 24 percent opposed, and a full 31 percent undecided or harboring no opinion.

May 21-June 3: AT&T/T-Mobile Under the Microscope

Over the past two weeks, we've seen steady progress on AT&T's proposed purchase of T-Mobile. Camps of supporters and opponents have formed as well as narratives the sides have begun to tell. For AT&T, the party line now is -- there's great support for the deal. But some good reporting casts some doubt on that storyline.

Two Gay & Lesbian Groups Back AT&T/T-Mobile

The Gay & Lesbian Alliance Against Defamation and the National Gay & Lesbian Chamber of Commerce are urging the Federal Communications Commission to approve AT&T's purchase of T-Mobile which the groups say will provide more access, faster service, and competitive pricing.

T-Mobile Subsidiary, Dealer Express Doubts Over AT&T Merger

There's dissension in the ranks over the AT&T/T-Mobile merger as a T-Mobile subsidiary, a T-Mobile dealer, and the company's roaming partners have all come out with serious concerns about the merger.

In a filing with the Federal Communications Commission, Iowa Wireless Services -- which is 54% owned by T-Mobile -- complains that it doesn't trust what it's heard from AT&T about the effect the merger would have on its business.

"Iowa Wireless has not been able to obtain any information regarding how -- if at all -- AT&T will incorporate Iowa Wireless into its long-term plans, nor has Iowa Wireless been able to determine what impact, if any, the transaction will have on Iowa Wireless's rural customers with respect to continued network access at reasonable rates," the company writes.

AT&T is talking to Iowa Wireless. It's just that the smaller carrier doesn't appear to trust the larger company's assurances. "AT&T has recently communicated to Iowa Wireless that AT&T will, consistent with its practice in similar transactions, honor any contractual and legal obligations arising out of the T-Mobile acquisition," the smaller carrier writes. One big issue appears to be AT&T's controversial pledge to shut down T-Mobile's 3G network so it can re-use the spectrum for LTE. That will leave rural areas run by T-Mobile partners "stranded," Iowa Wireless says, and could actually lead to less broadband in rural regions. "Some [rural carriers] that have not yet started to deploy wireless broadband in their communities are now reluctant to do so due to the uncertainty associated with AT&T's plans to move T-Mobile's network away from UMTS/HSPA," the company says. Iowa Wireless is also concerned about the roaming rates it will get from AT&T, and that AT&T won't honor partnership agreements where T-Mobile said it would work together with, rather than competing directly against certain rural carriers, the company says.

Bipartisan Policy Center: Need for greater consumer engagement, more public-private collaboration in health IT

Engaging patients through new technologies and expanding public-private collaborations are among the recommendations in a new report from the Washington-based Bipartisan Policy Center about leveraging health information technology to address problems in healthcare.

The report, Building a Strong Foundation for America’s Health Care System: The Role of Health Information Technology is part of the center’s health information technology initiative, which aims to identify and share policies and best practices to facilitate the effective use of health IT. At a discussion when the study was released, former Sen. Tom Daschle (D-SD), the center’s co-founder, said the Centers for Disease Control and Prevention has reported that 25% of office-based physicians have adopted some form of health IT. Improving the coordination and alignment of health IT and reform efforts and integrating the lessons learned from previous health IT implementations are the other two recommendations. In its section on consumer engagement, the report suggested developing and executing strategies that both public- and private-sector leaders can use to involve consumers in wellness-related activities as well as delivery-system and payment reforms through health IT.