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June 2011

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.

Small practices give lawmakers an earful about DC-centric Health IT regulations

Small medical practices warned Congress that health information technology risks being less than useless if it's designed to meet bureaucrats' arbitrary standards rather than the needs of doctors and patients.

Testifying at a House Small Business healthcare subcommittee hearing, the CEO of HIT Services company Ingenix said cost isn't the main reason physician's offices are struggling to make the switch to paperless. Rather, Andy Slavitt testified, the "purchase and design of technology (…) have taken a back burner to all of the compliance reporting requirements" needed to qualify for federal incentive payments. "Today," Slavitt said in written testimony, "the end-users, doctors and patients, are further away than ever from system design, because new product development is focused on satisfying those regulatory hurdles, rather than on simple innovations that improve productivity."

After Lady Gaga's Amazon Success, Should All Albums Cost 99 Cents?

Last week, Lady Gaga's new album Born This Way sold a monstrous (by today's standards, anyway) 1.15 million copies. That platinum status came partially thanks to Amazon, which offered her album for a dirt-cheap 99 cents, and, after its servers crashed from demand, sold roughly 440,000 digital copies. Undoubtedly, what consumers love more than a Lady Gaga album is a Lady Gaga album that only costs 99 cents.

Does this give credence to a theory that says albums, like singles, should only cost a buck? According to Rob Dickens, who headed up Warner Music in the UK for more than a decade, album prices ought to be "radically" cut -- to around £1 ($1.50). Dickens introduced the controversial theory in October at The City music conference, where he urged record labels to combat piracy and boost sales by making albums as much of an impulse buy as a single is today. Reducing album prices, he said, would ignite a boom in sales: Dickens predicted that major albums could sell as many as 200 million copies. Now Gaga herself is throwing more fuel on that argument. When asked whether she thought her album was worth more than 99 cents, the pop star told the The Wall Street Journal, "No, I absolutely do not, especially for MP3s and digital music." "It’s invisible. It’s in space," she added. "If anything, I applaud a company like Amazon for equating the value of digital versus the physical copy, and giving the opportunity to everyone to buy music." Still, as Gaga pointed out, her album wasn't actually 99 cents--the sales price was supplemented by Amazon. Hence, the 99-cent offering wasn't so much a promotion for Gaga as it was for Amazon, which was showing off its cloud music service

The High Price of Amazon's Gaga Deal

Amazon sold 440,000 downloads of Lady Gaga's "Born This Way" album, paying Gaga’s distributor, Universal, the full price of approximately $9 per album, and re-selling them at just 99 cents a piece -- meaning that Amazon lost more than $3 million in the process. It's possible Amazon will write this off as a marketing cost and move on, but whether the move will actually prove successful at driving more music sales to the site in the future is far from clear.

Consumer Groups Address Lifeline Reform at FCC

On June 1, a number of consumer groups spoke with Federal Communications Commission staffers to raise issues about proposed reforms to the FCC's Lifeline and LinkUp programs.

The groups discussed their grave concerns regarding the disparate impact the FCC’s one-per-address limitation for Lifeline would have on certain low-income populations including those in group housing, the homeless, and those in remote rural areas. The groups proposed that the better starting point for Lifeline eligibility determinations is to focus on the household’s eligibility instead of their housing situation. The groups' proposed definition of household (“any individual or group of individuals who are living together as an economic unit” which is derived from the federal Low Income Home Energy Assistance Program (LIHEAP) definition of household) and their proposed definition of residence which acknowledges that more than one household can reside at an address.

Benton Foundation Advocates for Lifeline Reform

On May 31, the Benton Foundation met with Federal Communications Commission staff to discuss Lifeline/LinkUp reform. The discussion focused on the following points:

  • The need for the “one per residence” rule to be changed to accommodate group living situations. Benton suggested that the FCC clarify the rule so that it reads and is implemented as “one per eligible adult”.
  • Benton stressed that this clarification would be achieve the program’s stated purpose to provide low-income or no income individuals with access to communications services.
  • Benton noted that with the clarification to “one per eligible adult’ the program would likely need to expand their wireless offerings. This expansion would require a restructuring of the rules surrounding wireless Lifeline and Link Up services to ensure that participants receive adequate services and that the verification procedure is adequately rigorous.
  • Benton then discussed the need for the FCC to reach out to other agencies that are managing social assistance programs and suggested and intergovernmental dialogue with HHS and HUD.
  • Benton also discussed the need for the FCC to reach out at the community provider level. Benton suggested setting up meetings or a series of roundtables with volunteer legal services programs, homeless advocacy projects, women’s shelters, prison reintegration projects and assisted living facilities.
  • Benton also noted that the clarification of the “one per eligible adult” rule would require a verification management system that is a robust and secure database.

US won't copy Aussie NBN

Apple co-founder Steve Wozniak gave the Australian government's National Broadband Network (NBN) project the thumbs-up during his flying visit to Australia, but lamented that it was unlikely the US will ever get similar high-speed broadband access or infrastructure.

Speaking at the Australian Chambers Business Congress, Wozniak said he feels the investment in the NBN came after a cry from the people for better infrastructure. "The attitude a couple of years ago was 'oh my gosh, Telstra is really letting us down and they're expensive and they're slow and they're not making Australia number one in the world [for broadband]'," Wozniak said. "The Australian people felt that very high-speed broadband was a key part of the future and we'd better not get left behind," he added, saying that the outcry has given way to the for high-speed broadband networks from both sides of Australian politics. "I think that was a turnaround [for Australia]."

Clearwire Outsources Support to TeleTech

Clearwire is outsourcing day-to-day customer care to TeleTech Holdings, shifting about 700 employees to the company, in its latest move to cut costs.

The national WiMax service provider has been trying to reduce its operating expenses over the past several months as it continues to post large losses. Last year Clearwire announced layoffs of 15 percent of its workforce, and last month it outsourced management of its network to Ericsson for the next seven years. About 700 Clearwire customer care workers based in Las Vegas and in Milton, Florida, will become TeleTech employees, Clearwire said. The company will keep about 180 employees across the two locations to handle back-office tasks such as operations and workforce management. Clearwire said the change will increase efficiencies and reduce costs and will be transparent to subscribers. TeleTech is a global outsourcing company based in Englewood, Colorado.

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

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 partyline now is -- there's great support for the deal. But some good reporting casts some doubt on that storyline.

We start our review with a story the Wall Street Journal ran on Tuesday, May 31 -- AT&T's Critics on Deal Growing. The Columbia Journalism Review noted the piece with a wish that other papers would follow suit. AT&T's mantra has been, as the WSJ piece notes, "Opposition is not growing. If anything, it seems fairly confined to the usual people and the usual organizations and does not seem to be growing beyond that.” The WSJ counters that opposition is steadily growing as competitors, state regulators and elected officials have come out in recent days expressing concerns about the acquisition.

As we've noted before, the Benton Foundation is closely tracking this transaction review (http://benton.org/headlines/at-t-t-mobile). There you can find links to all the comments the Federal Communications Commission has received so far in its review. At our deadline, nearly 10,000 filings have been made in this docket. The vast majority of these comments are letters from individuals stating their opposition to the deal. A sample letter reads:

AT&T's takeover of T-Mobile would stifle choice and innovation in the market, harm consumers, and lead to higher prices and fewer jobs nationwide. Don't let AT&T put our mobile future at risk. Please stand with me and reject such reckless consolidation of the mobile industry.

Segan SaschaWriting in PC Magazine, Sascha Segan goes so far to say that comments are "falling into two main buckets: individuals opposing the merger (many with auto-generated robo-comments from consumer advocacy Web sites), and groups or organizations supporting it." Now we've been trying to quantify the number of pro and con stories and editorials we've seen in our Headlines coverage. And our tally is 70-30 against the proposed deal. And there's plenty of detractors "with letterhead": Cellular South, Center for Digital Democracy, Cincinnati Bell Wireless, Clearwire, COMPTEL, Computer & Communications Industry Association, Consumers Union, Electronic Frontier Foundation, Free Press, Future of Music Coalition, Leap Wireless, Media Access Project, MetroPCS, Mobile 500 Alliance (Mobile DTV coalition), National Hispanic Media Coalition, New Jersey Division of Rate Counsel, New York State Public Service Commission, Open Technology Initiative of the New America Foundation, Public Knowledge, Rural Cellular Association, Seattle Times, Sprint.

Segan goes on to try to categorize the support. Among supporters, most said the merger will lead to more high-speed Internet access nationwide, but we're getting more high-speed Internet access anyway; Verizon seems to announce new 4G cities daily, and T-Mobile has already described plans to light up 55 cities with LTE-like speeds this summer. So Segan looked for reasons beyond merely "there will be more 4G." Here's what he found:

  • Unions: AT&T's supporter list includes a roll-call of labor groups from the AFL-CIO to Unite Here. They're unified with a simple message: AT&T workers belong to a union, while T-Mobile has busted unions. So AT&T ownership would be better for workers than T-Mobile's current management.
  • Free Marketers: Organizations that generally oppose government regulation, like chambers of commerce, are lining up in support of the merger.
  • Ethnic Groups: The AT&T/T-Mobile merger is supported by a genuinely bizarre array of ethnic-related organizations. The California Journal for Filipino Americans, the National (Black) Medical Association, and the Filipino American Arts Exposition don't seem like the kinds of groups who'd have opinions on wireless issues, but here they are.
  • The Coverage Argument: Rural groups seem to be supportive of anything that will improve wireless coverage in rural areas.
  • AT&T Relatives: AT&T is a big company with its fingers in a lot of pies. I didn't find any real evidence of "astroturfing" going on -- nobody told me their letter had been solicited by AT&T. But when Segan called Sam Duran at the Urban Corps of San Diego County, he readily admitted that his focus is on job training and conservation programs in the San Diego area -- not on wireless. Then Segan noticed that one of the board members for the organization is Christine Moore, AT&T's director of external affairs.

The Washington Post's Cecilia Kang did a nice job of exploring what AT&T is willing to spend to win approval of the deal -- and who might be included in the "AT&T Relatives" category. According to the Center for Responsive Politics, AT&T spent $6.8 million in the first three months of 2011 to hire lobbying shops and lawyers, who in large part are making the case to federal officials to approve the deal. AT&T’s lobbying expenditures are the third-largest among companies and trade groups so far this year, the center’s figures showed. The company is on track to spend more than the $15 million it paid lobbyists in 2010 to argue against policies such as Internet access rules and cellphone billing regulation.

Aside from money spent directly on lobbying government officials, industry observers say, AT&T is receiving support from several political leaders, trade groups and organizations such as the NAACP and at least one affiliate of the National Urban League. All have direct financial ties to the telecom giant. Among the 14 governors listed by AT&T as supporters of the proposed merger is Bobby Jindal (R) of Louisiana. AT&T is a key sponsor of the Supriya Jindal Foundation, a charity of the governor’s wife.

The FCC has received about 300 letters of support for AT&T. Some stand out:

  • AT&T-sponsored Virginia Asian Chamber of Commerce urged the FCC to quickly approve the deal, saying that as a group “striving to create bridges between cultures, we look forward to the foundation that this merger will create and the opportunities that it will give the public.”
  • The Urban League of Portland sent a similar letter to the FCC, saying the merger could help minorities gain faster access to broadband through a more robust, combined company. AT&T donated $125,000 to $249,999 last year to the National Urban League’s annual convention, the group said on its Web site.

"When you are as big as AT&T, you try to make as many friends as you can get,” said Nick Nyhart, president of Public Campaign, a lobbying and political finance reform group. “Its strength is its size, and this is the approach by other big companies, not just in telecom."

In the press, Sprint, the nation's third-largest wireless carrier, has been dubbed the leader of the opposition of the deal. And here's some of what the company had to tell the FCC about why the agency should reject the transaction:

The transaction would make AT&T the nation’s largest wireless carrier with 118 million subscribers in total and 43 percent of the post-paid market. Coupled with Verizon’s more than 94.1 million total subscribers and 39 percent of the post-paid market, the transaction would create a Twin Bell duopoly with 82 percent of post-paid subscribers, over 78 percent of all wireless revenues, and 88 percent of all wireless operating profits. The Twin Bells’ market dominance would dwarf Sprint, the sole remaining national carrier, and the rest of the wireless industry, thereby creating an entrenched, anti-competitive duopoly.

AT&T’s alleged capacity constraints are contradicted by the facts. Even without the proposed transaction, AT&T has the largest licensed spectrum holdings of any wireless carrier. AT&T also is the largest holder of unused spectrum….AT&T could use this reserve of spectrum to improve service for its customers, but has chosen instead to warehouse it for future services….If AT&T has capacity constraints, they are the result of its failure to upgrade and invest in its network. AT&T has lagged significantly in network investment. Its network investment per subscriber has been below the industry average, even after its exclusive iPhone deal placed increased demands on its network….

The Application asserts that AT&T’s network is facing dire capacity constraints, but in January of this year AT&T’s CEO proclaimed that “we’re really starting to feel good about the network situation” and just two years ago another AT&T executive stated that “[w]e feel very good about our spectrum position … [a]nd we say that with full understanding of what the data demands will be.

The FCC, for its part, continues its review of the proposed deal. On May 27, the agency sent T-Mobile a request for additional information, some 47 questions, on issues including spectrum capacity, alternatives considered by T-Mobile, a timeline of the proposed deal, cell tower positions, and much, much more. The FCC requests answers to the questions no later than June 10. A 78-page request asks AT&T 50 detailed questions about its spectrum holdings, its network and its contention that it needs T-Mobile's airwaves to provide nearly seamless mobile broadband service across the US. In the data request, the FCC asked for any "plans, analyses and reports" on the wireless giant's capacity constraints and any alternatives AT&T considered for solving its network capacity constraints other than buying T-Mobile. The agency also asked for pricing information about AT&T's services and "any competitor's pricing lists," including pricing policies, forecasts and tiered pricing models. The agency also asked for detailed information about AT&T's coverage areas, including areas where it "does not possess sufficient spectrum to deploy LTE," and its agreements with other carriers, including deals to offer roaming. The FCC's data requests are the clearest signals the agency will provide to the public about the issues it will examine during its review of the acquisition.

The FCC also sent 36 questions to AT&T and QUALCOMM about their spectrum license deal and the potential impact that could have on the AT&T/T-Mobile deal. The FCC asked for replies by June 3. AT&T had asked to keep the reviews of the two deals separate.

On May 26, the California Public Utilities Commission decided it will review the deal as well.

Also on May 26, the House Committee on the Judiciary's Subcommittee on Intellectual Property, Competition and the Internet held a hearing on the deal. Lawmakers from both sides of the aisle expressed skepticism that the transaction would lead to the consumer benefits that AT&T has promised.

With AT&T/QUALCOMM answers due today, AT&T/T-Mobile answers due Friday, June 10, and the deadline for next round of public comment at the FCC June 10 as well, there's lots more to come in this review. 'Til then, we'll see you in Headlines.

June 3, 2011 (Data Security)

BENTON'S COMMUNICATIONS-RELATED HEADLINES for FRIDAY, JUNE 3, 2011

Broadcasting Board of Governors meets today http://benton.org/calendar/2011-06-03/


CYBERSECURITY
   Recap: Lessons for Data Security Legislation
   Cybersecurity becoming U.S. diplomatic priority
   US Reviews Gmail Hacking Effort
   E-Mail Fraud Hides Behind Friendly Face
   Hacker Group Claims Responsibility for New Sony Break-In [links to web]
   A US strategy for fighting cyberattacks - editorial

INTERNET/BROADBAND
   Levin: 'Pretty Good' Year for Broadband Plan
   SureWest pledges to expand FTTH in Kansas markets
   Windstream Starts Small with Broadband Stimulus Project Ground Breaking
   Low-power TV broadcasters hope to offer rural broadband
   Cable Company Eyes 'Single Play' [links to web]

AGENDA
   Just Two items on FCC's June 9 Agenda - press release
   House GOP unveils technology agenda

FCC REFORM
   FCC Chairman: Commissioner Baker Told Us She Might be Talking With Comcast/NBCU About Job
   Free Press Urges FCC to Stop the Revolving Door - press release
   FCC web architect departs amid grumbling about revamped site [links to web]

AT&T/T-MOBILE
   Why Do So Many Groups Support the AT&T/T-Mobile Merger? - analysis
   MetroPCS argues against AT&T/T-Mobile deal, but offers conditions
   Rural Cellular Association Filed Petition to Deny AT&T/T-Mobile
   Utility Consumers’ Action Network urges FCC to Reject AT&T/T-Mobile
   New Jersey Opposes AT&T/T-Mobile
   Mobile500 Concerned About AT&T-T-Mobile Merger
   AT&T to pay $320 million for Convergys assets
   AT&T’s Ralph De La Vega at D9 [links to web]

MORE SPECTRUM/WIRELESS
   Senate Commerce leaders reach deal on spectrum bill
   Using Internet Outside? In Part of Brooklyn, Free Wireless Access Arrives [links to web]
   Google Gets in Bed With Mobile Operators Again [links to web]
   Killer App: Army Tests Smartphones for Combat [links to web]
   Warning over 4G and TV interference

CONTENT
   Copyright Office joins in: let's make illegal streaming a felony [links to web]
   TV executives confirm Hollywood's liberal agenda [links to web]
   The Last Taboo on Television [links to web]
   Court Ruling on California Prisons Leads on Blogs - research [links to web]
   Apple Completes Music Accords for New Service

PRIVACY
   Will FTC get the funds it needs to police Internet?

TELEVISION
   Hottest Olympic Event: Wrestling for TV Rights
   Mobile500 Eyes Fall Launch for National Mobile DTV Service [links to web]
   European TV ad sales gap is widening [links to web]
   Warning over 4G and TV interference

JOURNALISM
   Abramson to Replace Keller as The Times’s Executive Editor

LABOR
   Measuring the Human Cost of an iPad Made in China
   EEO: Six Key Tips for Staying Out of Trouble - analysis
   Former Tribune, Times Mirror executives, editors sue shareholders

GOVERNMENT & COMMUNICATIONS
   Governments Are Still Trying to Kill, Replace or Undo the Internet [links to web]
   Mideast Uses Western Tools to Battle the Skype Rebellion [links to web]
   Egypt: Court Fines Mubarak and Vodafone for Communications Blackouts [links to web]

POLICYMAKERS
   Can Todd Park Revolutionize the Health Care Industry? [links to web]
   FCC web architect departs amid grumbling about revamped site [links to web]
   FCC Commissioner Copps Receives Karen Peltz-Strauss Public Policy Award [links to web]

MORE ONLINE
   Executive Guilty of Defrauding the E-rate Program [links to web]

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CYBERSECURITY

HEARING RECAP
[SOURCE: House of Representatives Commerce Committee]
On June 2, 2011, the House Commerce Committee's Subcommittee on Commerce, Manufacturing, and Trade held a hearing entitled “Sony and Epsilon: Lessons for Data Security Legislation.” The purpose of the hearing was to examine the risks of the recent historic data breaches at Epsilon and Sony and the state of the ongoing investigations into each incident. The Subcommittee is chaired by Rep Mary Bono Mack (R-CA).
Epsilon Data Management is a business-to-business marketing services firm that manages email marketing campaigns for approximately 2500 companies. On April 1, 2011, Epsilon announced a criminal intrusion into their servers. While Epsilon initially estimated 50 of its corporate customers were affected, more recent media reports indicate the breach impacted about 75 of those firms (approximately 3 percent of their customers).
Sony announced on April 22, 2011, that an intrusion had occurred on April 19, affecting 77 million accounts. Intruders gained access to personal information such as name, email address, passwords, physical address, and birthdates. After reportedly patching the security hole and having determined what information was accessed, Sony began notifying the holders of the 77 million accounts on April 26, 2011. Due to the sheer number of accounts affected, Sony did not complete notification until 6 days after the notice began. Sony resumed its PlayStation Network operations to North America and Europe on May 15, and it restored access to Japan on May 27. On May 2, 2011, Sony announced what appeared to be a related breach of its Sony Online Entertainment network. On May 1, 2011, Sony discovered intruders gained access to nearly 25 million users’ information in approximately mid-April. That breach involved access to name, address, email addresses, birthdates, gender, phone number, and login name and password. On May 21, Sony reported a breach of So-Net Entertainment Corp, an ISP service in Japan. That intruder gained access to 90 of its users’ email accounts in addition to compromising the rewards points accounts of approximately 200 accounts. Last week, Sony announced yet another two breaches.
Chairman Bono Mack said, "I believe the lessons learned from the Sony and Epsilon experiences can be instructive. How did these breaches occur? What steps are being taken to prevent future breaches? What’s being done to mitigate the effects of these breaches? And what policies should be in place to better protect American consumers in the future? Most importantly, consumers have a right to know when their personal information has been compromised, and companies have an overriding responsibility to promptly alert them. These recent data breaches only reinforce my long-held belief that much more needs to be done to protect sensitive consumer information. Americans need additional safeguards to prevent identity theft, and I will soon introduce legislation designed to accomplish this goal. My legislation will be crafted around three guiding principles:
First, companies and entities that hold personal information must establish and maintain security policies to prevent the unauthorized acquisition of that data;
Second, information considered especially sensitive, such as credit card numbers, should have even more robust security safeguards;
And finally, consumers should be promptly informed when their personal information has been jeopardized."
Top executives from Sony and Epsilon said that they support federal legislation that would require companies to promptly notify consumers if their personal information is stolen or exposed by a data breach. Chairman Bono Mack plans to introduce legislation that would require companies that hold consumer data to put in place security measures to protect that information, with even stronger safeguards for sensitive data such as credit card numbers. Her bill would also require companies to promptly notify consumers if that data has been compromised.
benton.org/node/75317 | House of Representatives Commerce Committee | Associated Press | B&C
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CYBERSECURITY PRIORITY
[SOURCE: Reuters, AUTHOR: Peter Apps]
Cyber security is now a diplomatic priority for the United States with Washington looking to build relationships to tackle information theft and reduce the risk of conflict, a senior official said. State Department coordinator for cyber issues, Christopher Painter, said the United States faced a host of potential threats in cyberspace from freelance hackers to militants and potentially rival states. Diplomacy and policy was only just beginning to catch up with technology, he said. "It is clear that cyber security is now a policy imperative," he said. "It goes across governance issues, economic issues, military issues. The best course of action is to engage with countries and have a free and frank discussion. We're just at the beginning of this." Painter, appointed in April after working as senior director for cyber security policy at the White House, would not discuss recent security breaches nor say who he thought might be responsible. But it was clear issues needed to be addressed, he said.
benton.org/node/75310 | Reuters
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G-MAIL HACK
[SOURCE: Bloomberg, AUTHOR: Brian Womack, Douglas MacMillan]
Google’s discovery of an attempt to steal passwords from Gmail users, which may have originated in China, is being reviewed by the U.S. State Department and Federal Bureau of Investigation. The U.S. was notified this week and is looking into the allegations, Secretary of State Hillary Clinton said. The FBI is working with Google to review the matter, said Jenny Shearer, a bureau spokeswoman. The attacks likely targeted hundreds of Gmail users, including U.S. government officials. China’s foreign ministry said yesterday that any suggestion the government is behind the attack would be a “fabrication.” “We are obviously very concerned about Google’s announcement about a campaign that the company believes originated in China,” Clinton said yesterday at the State Department. “These allegations are very serious. We take them very seriously.”
benton.org/node/75309 | Bloomberg | Politico
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E-MAIL FRAUD
[SOURCE: New York Times, AUTHOR: Matt Richtel, Verne Kopytoff]
Most people know to ignore the e-mail overture from a Nigerian prince offering riches in exchange for a bank account number. That is a scam, plain to the eye. But what if the e-mail appears to come from a colleague down the hall? And all he asks is that you add some personal information to a company database? This is spear phishing, a rapidly proliferating form of fraud that comes with a familiar face: messages that seem to be from co-workers, friends or family members, customized to trick you into letting your guard down online. And it has turned into a major problem, according to technology companies and computer security experts.
People who work at the White House were among those targeted by the China-based hackers who broke into Google's Gmail accounts, according to one U.S. official.
The hackers likely were hoping the officials were conducting administration business on their private e-mails, according to lawmakers and security experts.
China denied that the country was the source of recent attacks against users of Google's email service. But the government in recent weeks has acknowledged taking a more active role in policing cyberspace to defend against security threats. Google's legations are "unacceptable," Chinese Foreign Ministry spokesman Hong Lei said Thursday. "Saying that the Chinese government supports hacking activity is entirely a fabrication."
Google didn't mention the possibility of involvement by the Chinese government in the latest attacks but said they came from an area that is home to a national-security arm of the People's Liberation Army. China long has said that its Internet users are the world's most victimized by cyberattacks. Mr. Hong said China pays great attention to cybersecurity and administers the Internet in accordance with the law.
benton.org/node/75350 | New York Times | WSJ - White House targeted | FT | WSJ - China's response
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CYBERSECURITY STRATEGY
[SOURCE: Los Angeles Times, AUTHOR: Editorial staff]
[Commentary] The Pentagon is developing a new cyberwarfare strategy that calls for the use of military force — including conventional weapons — in response to certain kinds of damaging online attacks on U.S. institutions. That's fine in theory; if foreign agents launch a cyberattack on, say, the nation's electrical grid, it may be both reasonable and proportionate to fire missiles at, say, the attacker's energy supplies. But as recent hacks and phishing attacks on Google's Gmail service and on defense contractor Lockheed Martin indicate, the theory may not translate well to the murky, messy reality of what's happening online. It's no surprise that the United States would reserve the right to use force against those who threaten it through the Internet. That's standard operating procedure for governments around the world in response to any new type of attack. The Obama administration stated its position simply in the International Strategy for Cyberspace policy paper released May 17, which declared that the United States "will respond to hostile acts in cyberspace as we would to any other threat to our country." But what constitutes an act of cyberwarfare? When would a military response be appropriate? And what are the rules of engagement? These are questions that U.S. administrations and defense officials have been struggling to answer for more than a decade. Last month the White House sent Congress a broad cybersecurity proposal that would have the government designate which companies control critical infrastructure, identify the ones subject to the greatest threats and declare which risks they must guard against. It would not, however, have the government tell them how to ward off cyberattacks or take control of critical facilities in the event of a cyberwar. Instead, it would require those companies to have cybersecurity plans that passed muster with independent evaluators. It's a modest but important step in response to a glaring cybersecurity gap that Congress should move quickly to fill.
benton.org/node/75339 | Los Angeles Times
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INTERNET/BROADBAND

BLAIR LEVIN ON THE COMMUNICATORS
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
Blair Levin, former executive director of the National Broadband Plan, appears on this week's The Communicators on C-SPAN. He says that it has been a "pretty good year" for the plan. He says it has been a case of "two steps forward, one step back," and that there are some things about which he has said "great" and others where he said "oh, really?" But he also said that is to be expected and that the plan was not meant to be a blueprint where everything has to be exactly right. Levin said that the plan was always meant to be an "agenda-setting and target-clarifying device." That means that it has targets to both shoot for and shoot at. He cited spectrum reform, Universal Service Fund reform and rights-of-way reform as among its key issues. Levin said he thought the debate had gone "off track" on the spectrum reform issue. He said the issue to resolve is not whether to reallocate spectrum, but how to reallocate it on an ongoing basis to serve evolving needs.
benton.org/node/75334 | Broadcasting&Cable | CSPAN
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SUREWEST IN KANSAS
[SOURCE: Connected Planet, AUTHOR: Dan O'Shea]
Independent telco SureWest Communications has announced that it is expanding its fiber-to-the-home (FTTH) broadband service in areas near Kansas City (KS), an announcement that comes not long after Internet giant Google said that the Kansas City area would be the site of its first FTTH network. SureWest, which recently launched FTTH in Olathe (KS) said its board of directors approved adding 5,000 new homes in the surrounding area to its 2011 capital investment plan, resulting in a total of 15,500 fiber home additions scheduled this year in Olathe. The company said the expansion was dictated by high consumer demand for the services. It did not mention Google’s planned roll-out as having any impact on its decision. SureWest, based in Roseville (CA), has operated in nearby Kansas City (MO) since acquiring Everest Broadband in 2007. It has 40 percent penetration on Everest’s pre-existing hybrid fiber-coaxial cable network, and in the last two years has passed 1,600 more homes with a new FTTH initiative, achieving a 34 percent penetration rate. SureWest cut a handful of jobs in the Kansas City area last year as part of broader job cuts.
benton.org/node/75036 | Connected Planet
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WINDSTREAM PROJECT
[SOURCE: telecompetitor, AUTHOR: Joan Engebretson]
Windstream was the largest single recipient of broadband stimulus grants from the Rural Utilities Service, winning a total of $181.3 million for projects in 13 states. But now that the company has begun to break ground on these projects, it’s starting small. The first Windstream broadband stimulus project to get underway is a project near Prentiss, Mississippi for which the company won $416,322. The project involves upgrading Windstream’s existing network with a little more than seven miles of fiber and installing electronic equipment, the company said. According to the announcement of the Mississippi ground breaking issued today, the project will provide broadband service at speeds of at least 6 Mb/s. Although the announcement does not specify what type of last mile technology the company is using, Windstream’s stimulus applications included many ADSL2+ projects, and that is likely the technology that will be used in the Mississippi upgrade. “Windstream had already built out our broadband network to every area that we could serve in a cost-effective way, and now for the first time we will be able to reach customers in some of the most rural parts of our community,” said Terry Mathis, local manager for Windstream.
benton.org/node/75034 | telecompetitor
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LPTV AND BROADBAND
[SOURCE: Connected Planet, AUTHOR: Joan Engebretson]
SpectrumEvolution.org is an advocacy organization that argues that low-power TV (LPTV) broadcasters can deploy broadband just as easily as anyone who might buy their spectrum. “Broadcasters should be allowed to play in broadband as opposed to being pushed to the margins,” said SpectrumEvolution.org President Greg Herman. Herman argued that thousands of low-power TV stations operating in the UHF band, including many in rural areas, have been left in limbo since the digital TV conversion of 2009. The low-power stations weren't required to convert to digital and many have not yet done so. “Since many haven’t converted, now is a great time to do something that might be more desirable to the public,” said Herman, who notes that only 15% of TV viewers watch over-the-air programming. SpectrumEvolution argues that LPTV broadcasters could deploy wireless broadband services covering a 10- to 15-mile radius for about the same amount it would cost them to convert to digital TV. The organization proposes that LPTV stations offer advertiser-supported broadband service at no charge to the customer. Customers would have to buy their own modem, but Herman said that cost could be recovered within three to six months based on the savings in Internet connectivity costs. Potentially the LPTV stations could continue to offer their traditional video content in a digitized format or could stream that content in IP form over the customer’s broadband connection, Herman said. The LPTV stations should have no trouble meeting the proposed minimum broadband speed of 4 Mb/s downstream and 1 Mb/s upstream proposed in the National Broadband Plan, said Herman.
benton.org/node/75032 | Connected Planet
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AGENDA

JUNE AGENDA RELEASED
[SOURCE: Federal Communications Commission, AUTHOR: Press release]
The Federal Communications Commission released the agenda for its June 9 meeting and there's just two items. The FCC will consider:
Electronic Tariff Filing System Report and Order: A Report and Order that enables all carriers that file tariffs with the FCC to do so electronically, thereby streamlining their filing processes while also making tariff information more readily accessible to other carriers and the public.
Space Path Interference Report and Order: A Second Report and Order adopting technical rules to mitigate space path interference between the 17/24 GHz Broadcasting-Satellite Service (BSS) space stations and current and future Direct Broadcasting Service (DBS) space stations that operate in the same frequency band. (IB Docket No. 06-123)
The Chief of the Public Safety and Homeland Security Bureau and the Assistant Administrator of FEMA will also give a presentation regarding the Emergency Alert System.
Dropped from the preliminary agenda:
Wider Channel Bandwidths FNPRM: An FNPRM seeking comment on a proposal which may permit operators to use spectrum more efficiently by enabling the use of wider channel bandwidths for the provision of broadband services in the Broadband Radio Service (BRS) and the Educational Broadband Service (EBS). [See FCC to consider proposal that could boost Clearwire network speeds http://benton.org/node/66315]
Maritime Automatic Identification Systems Order: A Memorandum Opinion and Order considering a petition for reconsideration of the deadline by which VHF Public Coast (VPC) licensees must vacate Channel 87B following its re-designation for the exclusive use of Automatic Identification Systems and to modify the VPC frequency band.
benton.org/node/75306 | Federal Communications Commission
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GOP TECH AGENDA
[SOURCE: The Hill, AUTHOR: Gautham Nagesh]
House GOP Leadership said they will focus on protecting US intellectual property, preventing cyber attacks and ensuring there is enough spectrum available for mobile broadband during the launch of the House Republican Technology Working Group. Speaker John Boehner (R-Ohio) framed the groups agenda as a response to the concerns of the technology industry. “The technology sector is on the frontlines of our country’s efforts to create new jobs, and they are concerned about the policies they are seeing coming out of Washington," Speaker Boehner said. "This working group will play a critical role in promoting policies that help keep America at the forefront of innovation and unleash the drive and entrepreneurship of our people." Joining Speaker Boehner at the press conference was Technology Working Group Chairman Bob Goodlatte (R-VA), who said Republicans are committed to creating an environment where the tech sector can flourish.
benton.org/node/75315 | Hill, The
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FCC REFORM

BAKER LETTER
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
In a letter to House Oversight Committee Chairman Darrell Issa (R-CA), Federal Communications Commission Chairman Julius Genachowski said that FCC Commissioner Meredith Attwell Baker contacted the FCC General Counsel's office on April 13 to ask what she should do if she "entered into exploration of employment with NBCUniversal," and by April 18 had recused herself from any matters that would directly bear on NBCU or Comcast. Chairman Genachowski said Baker will be prohibited from lobbying the FCC for two years, as well as from lobbying many other political appointees for as long as President Barack Obama is in office.
benton.org/node/75314 | Broadcasting&Cable | Chairman Genachowski | Chairman Issa | National Journal
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STOPPING THE REVOLVING DOOR
[SOURCE: Free Press, AUTHOR: Press release]
In a letter sent to the Federal Communications Commission, Free Press asked the four remaining commissioners to pledge not to seek employment with either AT&T or T-Mobile, whose multi-billion merger is now under review at the FCC. The request follows the departure of FCC Commissioner Meredith Attwell Baker, who abandoned her position to become a lobbyist for Comcast - after voting to approve that company's merger with NBC Universal just months earlier. The House Government Oversight Committee has launched an inquiry into the circumstances surrounding Baker's departure.
benton.org/node/75038 | Free Press | read the letter
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AT&T/T-MOBILE

SUPPORT FOR AT&T/T-MOBILE
[SOURCE: PC Magazine, AUTHOR: Sascha Segan]
[Commentary] The Federal Communications Commission has now received more than 10,000 public comments about the AT&T/T-Mobile merger, and they're falling into two main buckets: individuals opposing the merger (many with auto-generated robo-comments from consumer advocacy Web sites), and groups or organizations supporting it. Among supporters, most said the merger will lead to more high-speed Internet access nationwide, but we're getting more high-speed Internet access anyway; Verizon seems to announce new 4G cities daily, and T-Mobile has already described plans to light up 55 cities with LTE-like speeds this summer. So Segan looked for reasons beyond merely "there will be more 4G."
Unions: AT&T's supporter list includes a roll-call of labor groups from the AFL-CIO to Unite Here. They're unified with a simple message: AT&T workers belong to a union, while T-Mobile has busted unions. So AT&T ownership would be better for workers than T-Mobile's current management.
Free Marketers: Organizations that generally oppose government regulation, like chambers of commerce, are lining up in support of the merger.
Ethnic Groups: The AT&T/T-Mobile merger is supported by a genuinely bizarre array of ethnic-related organizations. The California Journal for Filipino Americans, the National (Black) Medical Association, and the Filipino American Arts Exposition don't seem like the kinds of groups who'd have opinions on wireless issues, but here they are.
The Coverage Argument: Rural groups seem to be supportive of anything that will improve wireless coverage in rural areas.
AT&T Relatives
AT&T is a big company with its fingers in a lot of pies. I didn't find any real evidence of "astroturfing" going on -- nobody told me their letter had been solicited by AT&T. But when Segan called Sam Duran at the Urban Corps of San Diego County, he readily admitted that his focus is on job training and conservation programs in the San Diego area -- not on wireless. Then Segan noticed that one of the board members for his organization is Christine Moore, AT&T's director of external affairs.
benton.org/node/75068 | PC Magazine
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METROPCS VS AT&T/T-MOBILE
[SOURCE: Fierce, AUTHOR: Mike Dano]
MetroPCS made official its opposition to AT&T's proposed $39 billion purchase of T-Mobile USA, joining the likes of Leap Wireless, Cellular South and Sprint Nextel in calling on regulators to squelch the transaction. MetroPCS, the nation's fifth largest wireless carrier with close to 9 million subscribers, had not previously taken a stance on the deal.
However, in its filing with the Federal Communications Commission, MetroPCS attempted to play both sides of the topic, offering suggestions on conditions the agency should place on AT&T if it does approve the transaction. Specifically, MetroPCS urged the FCC to require AT&T to divest unused spectrum, provide roaming services to competitors and quit selling exclusive handsets. MetroPCS' stance is noteworthy considering that other players, including Sprint, have said the deal should not be approved under any conditions.
Among Metro's more prominent arguments:
AT&T's 'spectrum crunch' is a problem entirely of its own making, caused by years of bad decisions and clinging to inefficient technologies.
The fact that MetroPCS already is achieving two times more efficiency than AT&T--with considerably less spectrum--demonstrates that AT&T could double the utilization of its existing spectrum in many markets merely through investments in technology and infrastructure.
MetroPCS was the first to deploy 4G LTE -- substantially ahead of AT&T which is only now planning to deploy 4G LTE. AT&T claims spectrum constraints have slowed it down, yet MetroPCS faces much worse constraints, yet has innovated in this area faster than AT&T.
benton.org/node/75066 | Fierce
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RURAL CELLULAR ASSOCIATION
[SOURCE: Rural Cellular Association, AUTHOR: Matthew Brill]
The proposed transaction presents a stark choice: AT&T can either spend $39 billion to eliminate a growing competitive threat (and the one with the lowest-priced service offerings among the nationwide carriers), or it can invest that capital in new broadband networks and improved service quality and deliver substantial public interest benefits in the process. The Federal Communications Commission’s response will have profound implications for competition, economic growth, innovation, and consumer welfare.
Absent the proposed acquisition, AT&T would be forced to respond to mounting consumer demand and competitive pressures by building out the considerable broadband spectrum it has warehoused and by deploying new technologies to make more efficient use of the spectrum on which it currently relies. That future would entail significant infrastructure investment, job creation, and broadband deployment. And it would preserve retail and wholesale competition, as T-Mobile would remain a viable nationwide carrier that offers consumers the lowest-price plans among its peers over what T-Mobile claims to be the nation’s largest 4G network.
In contrast, if AT&T were allowed to gobble up one of only three nationwide rivals, the merged entity would focus on consolidating existing networks in lieu of building out new facilities; it would shed unnecessary workers instead of creating new jobs; and it would move the national wireless marketplace from a state of already troubling concentration to outright duopoly, heralding an era of higher prices, diminished service quality, and reduced innovation. Following the transaction, AT&T and Verizon would each have more subscribers than all of the nation’s other wireless carriers combined, and AT&T would enjoy monopoly power in the wholesale marketplace for roaming services as the only remaining nationwide GSM carrier.
RCA, an organization representing the interests of nearly 100 competitive wireless carriers, including many rural and regional carriers, opposes this unprecedented transaction because the severe harms it threatens would vastly outweigh any public interest benefits.
benton.org/node/75065 | Rural Cellular Association
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UCAN COMMENTS
[SOURCE: Utility Consumers’ Action Network, AUTHOR: Art Neill, Hannah Lowe, Mike Scott, Meghan Boh]
New Media Rights, Utility Consumers’ Action Network, and Privacy Rights Clearinghouse are urging the Federal Communications Commission to deny AT&T’s
application for acquisition of T-Mobile USA. Should this transaction be completed, a major nation-wide competitor will be eliminated, giving AT&T approximately 40% of the nation-wide mobile wireless market, and creating an effective duopoly where together, AT&T and Verizon Wireless together hold nearly 80% of the nation-wide market. The groups discuss the detrimental impact the potential merger will have in numerous areas of the wireless industry, because of 1) AT&T’s anti-innovation history and the lack of net neutrality rules in the wireless space 2) the negative affect on customer service, prices, and variety of services available, and 3) the removal the most privacy-friendly of the four major carriers from the market.
benton.org/node/75063 | Utility Consumers’ Action Network
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NJ OPPOSES AT&T/T-MOBILE
[SOURCE: New Jersey Division of Rate Counsel, AUTHOR: Stefanie Brand]
The New Jersey Division of Rate Counsel says the Federal Communications Commission should deny the application of AT&T to acquire T-Mobile USA’s assets and operations from Deutsche Telekom AG because the proposed transaction is not in the public interest. The proposed merger would eliminate an actual and potential competitor that serves relevant wireless markets throughout the United States, lead to excessive and harmful market concentration in wireless markets, and create significant pressure for Sprint Nextel Corporation, as the distant third national wireless carrier, to merge with another carrier.
The proposed transaction would harm competition and reduce consumer choice. As a result, consumers of wireless services throughout the country, whether served by AT&T or by other carriers, likely would pay higher rates and receive worse service quality, If the merger is approved, AT&T and Verizon would control the vast majority of the nation’s access to the public switched network, including wireline and wireless access. Duopolistic control of consumers’ access to voice and broadband is antithetical to the public interest. Furthermore, the FCC’s exemption of the wireless industry from an important component of its recently issued network neutrality rules heightens the risks of this proposed market concentration for consumers’ nondiscriminatory and open access to the network
benton.org/node/75061 | New Jersey Division of Rate Counsel
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MOBILE DTV AND AT&T/T-MOBILE
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
The Mobile500 Alliance, a consortium of commercial and noncommercial broadcast television stations promoting mobile digital TV, says that if the Federal Communications Commission approves the AT&T/T-Mobile merger, it should condition that transaction on the new companies' agreement that it offer and promote broadcast mobile DTV on its voice and data networks, with hardware and software in devices to receive it. In comments filed with the FCC on AT&T's proposed $39 billion deal, Mobile500 said the goal should be to ensure that at least half of all devices sold for use on the combined company's networks be mobile DTV capable by 2013. It also wants the FCC to require AT&T/T-Mobile to ensure broadcasters have unimpeded access to viewership data and usage information for their service and acknowledge that audience measurement and usage data is the property of the broadcast content distributor.
benton.org/node/75059 | Broadcasting&Cable
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AT&T WIRELESS BUY
[SOURCE: Reuters, AUTHOR: Saqib Iqbal Ahmed, Abhiram Nandakuma]
AT&T will buy Convergys Corp's interests in two wireless operations in the Cincinnati, Ohio area for about $320 million in cash. The purchase, which Convergys said does not need regulatory nods because AT&T already controls the operations, comes at a time when the wireless carrier is in a battle with regulators and competitors to gain support for its proposed $39 billion deal with T-Mobile USA. Convergys, which announced the deal on Thursday, holds a 34 percent stake in Cincinnati SMSA and a 45 percent limited-partnership interest in Cincinnati SMSA Tower Holdings, both of which it got when it spun-off from Cincinnati Bell in December 1998. AT&T holds the rest of both operations. Cincinnati SMSA is a wireless communications provider, while Cincinnati SMSA Tower Holdings is a cellular tower holding company for Cincinnati SMSA.
benton.org/node/75312 | Reuters
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MORE SPECTRUM/WIRELESS

SENATE SPECTRUM BILL
[SOURCE: National Journal, AUTHOR: Juliana Gruenwald]
Apparently, the leaders of the Senate Commerce Committee have reached an agreement on legislation aimed at building a national broadband network for public-safety officials. The committee plans to mark up the compromise version of the bill on June 8. Committee Chairman Jay Rockefeller (D-WV) has been pushing to pass his legislation before the 10th anniversary of the September 11, 2001, terrorist attacks, and had been negotiating to gain the support of ranking member Kay Bailey Hutchison (R-TX). The attacks helped expose the deep problems with the nation's emergency communications system when firefighters and police officers were unable to communicate with each other. Rockefeller's original bill would reallocate a chunk of spectrum known as the D-block to public safety officials for a national interoperable network. It would also authorize the Federal Communications Commission to hold voluntary incentive auctions that would free up spectrum for wireless broadband technologies and generate funding to help pay for the public-safety network. The incentive auctions would entice broadcasters and others to give up some of their spectrum in exchange for a share in the proceeds. Sens Rockefeller and Hutchison introduced a placeholder bill in early May and will offer a substitute version at next week's markup. The latest version of the substitute, a copy of which was obtained by National Journal, maintains the main elements of Rockefeller's original bill and adds several new sections.
benton.org/node/75303 | National Journal
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4G AND TV
[SOURCE: Financial Times, AUTHOR: Tim Bradshaw]
The digital television signal for hundreds of thousands of UK homes will be affected by interference from new 4G mobile networks when they come online in 2013, the telecoms regulator has warned. Ofcom said that mobile operators should bear the estimated £100m costs of mitigating the interference, after they bid for new 4G spectrum early next year. It estimates that about 3 per cent of digital terrestrial television viewers – around 760,000 homes – will be affected when the so-called “digital dividend” spectrum, previously used for analog broadcast, in the 800MHz range starts being used to transmit mobile phone calls and data in the next few years. The interference problem adds another complication to the process of the digital TV switchover, which is due to be completed in 2012. “It is an issue but it is not insurmountable,” said an Ofcom spokesperson. “There are plenty of mitigations to ensure everyone can continue watching TV.”
benton.org/node/75335 | Financial Times
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CONTENT

NEW APPLE SERVICE
[SOURCE: Bloomberg, AUTHOR: Adam Satariano, Andy Fixme]
Apparently, Apple reached an agreement with Universal Music Group, the largest record label, setting the stage for its new service to let users access song libraries on multiple devices. The new music service, enabling customers to store their music on Apple’s servers, will be previewed on June 6 by Chief Executive Officer Steve Jobs at Apple’s annual developers conference. Apple’s deal with Vivendi’s Universal Music, whose artists include Lady Gaga and U2, follows agreements with Sony Corp. (6758)’s music unit, Warner Music Group and EMI Group Ltd. By moving the files into the so-called cloud, songs will be available on devices such as the iPhone and iPad without users having to plug in and synchronize the gadgets. Instead, tracks can be streamed from anywhere with a Web connection.
benton.org/node/75330 | Bloomberg
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PRIVACY

FUNDS FOR FCC?
[SOURCE: Politico, AUTHOR: Tony Romm]
As Congress weighs whether to expand the powers of the Federal Trade Commission as an online privacy watchdog, a key question looms. Will Washington fund its work? The FTC over the past few months has brokered landmark privacy settlements with Google, Twitter and countless other Web companies — even as the agency’s privacy team and roughly $291 million budget for 2011 has remained relatively small. But Congress envisions an even broader role for the commission in protecting consumers on the Internet and could charge the agency with overseeing laws requiring Web companies to let users opt out of some online advertising and better protecting children younger than 13. The push to give the FTC a greater role as the Internet’s top cop may soon trigger a debate over the agency’s resources. In fact, the growing clamor for more online privacy enforcement could drown under the wave of fiscal austerity sweeping Capitol Hill this year.
benton.org/node/75329 | Politico
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TELEVISION

TV RIGHTS FOR OLYMPICS
[SOURCE: Wall Street Journal, AUTHOR: Jessica Vascellaro, Matthew Futterman]
The escalating fight over TV sports rights reaches its biggest battlefield next week, as NBCUniversal pushes to extend its track record of Olympic broadcasting wins, and ESPN and Fox aim to spoil it. On June 6 and 7, the TV broadcasters will bid for exclusive U.S. television rights for the 2014 and 2016 Olympic Games, one of the few spectacles guaranteed to draw big, live TV audiences at a time when consumers are spreading their attention across a growing number of TV channels and online video sites. The bidding, which is expected to be tighter than in years' past, also marks an effort by the International Olympic Committee and its TV broadcasters to find a way to make televising the Games profitable again. The old model of focusing coverage on one flagship broadcast channel has been broken by the steep increases in rights fees, which have risen faster than advertising rates. The media companies are each sending fleets of executives to Switzerland to make their pitches. And each is taking a different approach.
benton.org/node/75346 | Wall Street Journal
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JOURNALISM

ABRAMSON TO HEAD NYTIMES
[SOURCE: New York Times, AUTHOR: Jeremy Peters]
Jill Abramson, a former investigative reporter who rose to prominence as a Washington correspondent and editor, will become the next executive editor of The New York Times, succeeding Bill Keller, who is stepping down to become a full-time writer for the paper. The move was accompanied by another shift in senior management. Dean Baquet, the Washington bureau chief and former editor of The Los Angeles Times, will become the managing editor for news. Abramson will become the first woman to be editor of the paper in its 160-year history.
Over the course of Keller’s tenure, the paper won 18 Pulitzer Prizes and expanded its online audience to some 50 million readers worldwide. But the economic downturn and the drift of readers and advertisers to the Web also forced the paper to lay off members of the news staff and tighten budgets considerably.
benton.org/node/75349 | New York Times | FT
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LABOR

HUMAN COST OF IPAD
[SOURCE: Wall Street Journal, AUTHOR: John Bussey]
If Apple ordered up a batch of its iPad computers to meet surging market demand and an explosion in the workshop killed three workers and injured 15 others, an army of regulators, cops and plaintiffs lawyers would descend on the company to demand an accounting. On May 20, that's exactly what happened -- minus the descending and the accounting. The workshop, it turns out, wasn't in Cupertino, Calif., home to Apple's campus. It was a legal arm's length away in Chengdu, China, run by a goliath called Hon Hai Precision Industry, a Taiwanese company that's become one of the world's biggest employers and contract manufacturers. In this, Apple is joined by an A-list of electronics companies -- Hewlett-Packard, Dell, Sony and others. All in some form operate at arm's length from the assembly of many of their products in countries such as China, where labor is cheap. These vast production lines -- Hon Hai employs close to a million workers in China -- are fueled by U.S. consumers seeking rock-bottom prices, shareholders demanding solid profit margins, national governments keen to boost employment, and local workers eager to move up the economic ladder. It's a world long on secrecy and fuzzy on accountability. Two weeks after the explosion, there are only preliminary reports of what happened. Apple doesn't even publicly acknowledge the iPad is made in Chengdu. What is known is that one of the more primitive of industrial problems sparked the explosion: A metal polishing shop was improperly ventilated or cleaned, dust collected in the air or on surfaces, and then, in a moment of considerable violence, the dust ignited.
benton.org/node/75344 | Wall Street Journal
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EEO TIPS
[SOURCE: TVNewsCheck, AUTHOR: Michael Berg]
The Federal Communications Commission is increasing its attention to enforcement of its equal employment opportunity (EEO) rules. Why now? One reason is criticism by advocacy groups of lax enforcement under FCC Julius Chairman Genachowski in the past. Some say the commission’s central focus on broadband deployment is a cause of that. Also, the new license renewal application cycle began June 1.The application requires EEO information for the whole expiring term, and traditionally the FCC focuses on EEO at renewal time. Attention to the items listed below can help stations avoid heartache and FCC sanctions for noncompliance.
Know what EEO information is required for license renewal, and assure to keep track of it continuously. That’s key because the renewal application asks about FCC compliance for the whole expiring term.
Be prepared for a random FCC audit of station EEO compliance. Here’s a link to the FCC’s most recent audit letter, dated March 29, 2011. Note that it requires some information that is different from what other forms require.
When choosing which EEO community outreach initiatives to do every two years, be realistic, and match your activities to the selected categories in advance, not the other way around.
Be sure to “churn” your list of referral sources periodically during the license term.
After notifying recruitment sources of a vacancy, wait a reasonable time before hiring someone to allow applications to be submitted and reviewed by the station.
Stations don't need to recruit for part-time or temporary jobs. But if one of those positions is converted to full time or permanent, recruiting (including contacting referral sources) must be done for it.
benton.org/node/75332 | TVNewsCheck
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TRIBUNE SUIT
[SOURCE: Washington Post, AUTHOR: Peter Whoriskey]
A group of former publishers, executives and editors of the Tribune Co. and Times Mirror Co. filed suit against major shareholders who benefited from the $8.2 billion takeover of the media conglomerate. The group is seeking to recover $109 million in retirement benefits that were stripped after the company that publishes the Los Angeles Times and the Chicago Tribune filed for bankruptcy in the wake of the buyout, which had enriched some shareholders. The buyout deal in 2007 “lined the pockets of certain Tribune insiders and controlling shareholders with billions of dollars” while rendering Tribune insolvent, or nearly so, according to a copy of one of the lawsuits. Burdened by debt incurred during the buyout, Tribune filed for bankruptcy in 2008. The retirees named in the lawsuit — most of them from Times Mirror, which merged with Tribune in 2000 — were told after the bankruptcy that their retirement payouts would be suspended. The plaintiffs “gave their lives” to the company, the lawsuit says, and were relying on those retirement plans. But the buyout deal, which nearly doubled the company’s debt, led Tribune to file for the bankruptcy. The plaintiffs “had the rug pulled out from under them,” the lawsuit said.
benton.org/node/75341 | Washington Post
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