June 2011

Taking Sides over the Spectrum Question

At the SNL Kagan TV and Radio Finance Summit in New York, National Association of Broadcasters General Counsel Jane Mago said broadcasters' sale of airwaves to wireless carriers — even if it’s voluntary as proposed — could result in the restriction of free, accessible information provided by over-the-air TV stations. Free broadcasts still account for 50% of all TV viewing in the US. In addition, Mago said the proposal, designed to appeal to broadcasters who want to unload spectrum or need a cash infusion, “destroys the world of innovation, which really is vital for the broadcast industry moving forward.”

Brandon Burgess, chairman-CEO of Ion Media Networks, agreed, saying that although traditional TV is still broadcasters’ core business, making better use of alternative platforms is incumbent upon them as well. “We serve 115 million television homes … pretty well,” he said. “What we'd also like to be able to do is service the devices, outside the home, and create that option over the next years to grow into that marketplace.”

Selling off massive amounts of airwaves to wireless carriers is not the only way to meet the growing demand for spectrum that’s accompanying the explosive use of mobile devices like smart phones and tablet computers, Mago said. “The position that we at the NAB and broadcasters have taken is that there is more than one way to skin a cat,” she said. “There also are a whole lot of places that spectrum is accessible.”

Michael Altschul, SVP and general counsel of the Wireless Association, sees it otherwise. “We are doing everything we can in the wireless industry to be more efficient,” he said. But use of smartphones and wireless data doubled just last year alone, he said. “Spectrum really is the answer to fulfilling the public’s demands for broadband wireless services,” Altschul added.

William Lake, chief of the FCC’s Media Bureau, said the agency wasn't taking sides. Rather, by creating a voluntary airwaves auction, the fate of the airwaves will really be in the hands of the buyers and sellers. The FCC is not mandating how much spectrum should be sold, he said.

House Commerce Committee Announces Plans for Comprehensive Review of Data Security and Electronic Privacy

The House Commerce Committee is launching a thorough review of data security and electronic privacy issues affecting American businesses and consumers. The committee has begun its work with hearings to shed light on the foundational question of data security, which has drawn increased attention in the wake of recent high-profile data breaches affecting tens of millions of consumers. While data security and prevention of data theft will mark the first phase of the committee's action, the Energy and Commerce Committee will also look later in the year at broader electronic privacy concerns. The committee has a long history addressing of more complex privacy-related matters, from the historic protections afforded under the Health Information Privacy law and Gramm-Leach-Bliley to continuing oversight in the last decade.

The first phase of the committee's review will look at the security of personal information collected and maintained online, particularly in light of the fact that nearly nine million Americans a year are victims of identity theft. Breached records include reports detailing consumers’ financial and medical records. Sophisticated hackers have been successful in obtaining access to personal information such as names, birthdays, credit card numbers, PIN numbers, and social security numbers. The ramifications of a data breach are both costly and time consuming for businesses and consumers.

All aboard the privacy-breach gravy train

The hacking of a Sony customer database this spring has attracted class-action lawyers and consumers eager to cash in on the high-profile privacy breach.

At least 40 lawsuits have been filed in federal courts -- including at least two this week -- on behalf of millions of Sony PlayStation users. The suits accuse Sony of failing to protect gamers' personal data and credit card information from hackers. The pattern is a common one: Details of a privacy breach become public, which triggers a wave of suits, which lead to oft-costly settlements as companies try to hold onto the trust of their customers.

Who benefits the most from the suits? Not the plaintiffs. In privacy cases, it is both difficult to prove economic damage and to divvy up a settlement among classes that can number in the millions or even tens of millions. While a handful of lead plaintiffs might receive a nominal fee, the parties can also agree to distribute any settlement payout to nonprofit organizations that promote the privacy interests of the class. The lawyers, in contrast, walk away with a chunk of change that can range from tens of thousands to millions of dollars. Critics say these settlements deprive the victims of any meaningful benefit and invite conflicts of interest by allowing defendants and plaintiffs' lawyers to choose their pet organizations.

Tennessee passes Web entertainment theft bill

State lawmakers in the capital of country music have passed a groundbreaking measure that would make it a crime to use a friend's log-in — even with permission — to listen to songs or watch movies from services such as Netflix or Rhapsody.

The bill, now awaiting the governor's signature, was pushed by recording industry officials to try to stop the loss of billions of dollars to illegal music sharing. They hope other states will follow. The legislation was aimed at hackers and thieves who sell passwords in bulk, but its sponsors acknowledge it could be employed against people who use a friend's or relative's subscription. While those who share their subscriptions with a spouse or other family members under the same roof almost certainly have nothing to fear, blatant offenders — say, college students who give their log-ins to everyone on their dormitory floor — could get in trouble.

NAB Completes Merger with MSTV

The National Association of Broadcasters officially completed its merger with the Association for Maximum Service Television (MSTV), the trade association that worked with NAB to help shepherd through the digital television transition.

The announcement came after NAB membership was solicited and overwhelmingly voted in favor of the merger. As part of the merger, four of the five MSTV employees officially joined NAB this week, three of whom will be in the Science and Technology Department. These include Victor Tawil, who joins NAB as a senior vice president, and Bruce Franca as vice president. David Donovan, the former MSTV president, is joining the New York State Broadcasters Association as president and executive director.

IT Reform at the Department of Commerce

The information technology community at the Department of Commerce has been hard at work implementing Federal IT Reform as outlined by U.S. Chief Information Officer Vivek Kundra last December.

After only six months, our list of accomplishments is impressive, but there is still much to be done to meet the ambitious goals set forth in the 25 Point Implementation Plan to Reform Federal IT Management. The plan represents not just a change in strategy, but a change in thinking among the technology leaders in the administration and at the Commerce Department. Moving toward a leaner, cloud-driven and collaborative approach is a significant shift in philosophy, and we are aggressively incorporating these ideas into our strategic IT planning process. To date, we have closed six Commerce data centers, with a total of nine scheduled to be closed by the end of the year. Consolidating data centers will significantly lower the agency’s carbon footprint, save us millions of dollars each year, and allow for more effective use of resources as we streamline our infrastructure to become more efficient. Every major change presents both challenges and opportunities, and we are taking full advantage of this opportunity to enhance the security of the department’s IT operations while also improving our performance. During the 2010 Census, cloud computing enabled us to handle a once-in-a-decade peak in demand (over five million hits per week) for Census information without having to add permanent capacity. By harnessing the power of the cloud, we were able to offer a compelling set of blogs, videos and interactive tools that encouraged participation in the Census. With several more projects in the pipeline, we continue to pursue the goal of thinking “Cloud First” when it comes to IT. [Szykman is the Chief Information Officer at the Department of Commerce]

Reps Call for GAO Cell Phone Safety Study

Reps Ed Markey (D-MA), Henry Waxman (D-CA) and Anna Eshoo (D-CA) called on the Government Accountability Office to do more research into the health impacts of mobile phone usage.

The trio wants the GAO to begin "a thorough review of the status of existing research on the health risks of long-term mobile phone use, adequacy of the Federal Communications Commission's (FCC) safety standards for mobile phone radiation, and what actions are being taken to inform the public of potential risks." "The announcement by the World Health Organization makes clear that additional research is needed to fully understand the long-term impact of mobile phone use on the human body, particularly in children whose brains and nervous systems are still developing," said Rep Markey.

"Based on previous assessments of the scientific evidence, the Federal Communications Commission has concluded that ‘[t]here's no scientific evidence that proves that wireless phone usage can lead to cancer,'" said CTIA: The Wireless Association. "The Food and Drug Administration has also stated that ‘[t]he weight of scientific evidence has not linked cell phones with any health problems.'"

Qualcomm’s Wi-Fi Chip Could Turn Handhelds Into a TV Set-Top Box

Qualcomm launched a tri-band chip that will offer dual-band Wi-Fi, Bluetooth and a fast wireless video transfer technology all on a single piece of silicon.

Wi-Fi and Bluetooth 4.0 capabilities have long been integrated together on a single chip, but this is the first to add support for the 60 GHz wireless frequency, which is specific to high-speed video and backed by the Wireless Gigabit Alliance. With the new chip, Qualcomm is adding the potentially final piece to the puzzle of how to best stream video content from smartphones and tablets directly to high definition television sets without interference from other wireless data protocols.

Washington power outage tests telework plans

A power outage in Northeast Washington put three agencies' telework plans to the test. The power outage, which was caused by damage to a number of underground electrical cables, affected the Federal Energy Regulatory Commission, the General Services Administration's main building, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. All three federal buildings are located within about half a mile of each other near First Street and between H and P streets in Northeast Washington.

About 50 emergency personnel at the Federal Energy Regulatory Commission worked from home or from an alternate site while power was out at the agency's main building on First Street, spokeswoman Mary O'Driscoll said. Some of the more than 1,100 nonemergency employees at FERC's Washington office also telecommuted on Wednesday, but it's unclear how many employees could not work from home and so were forced to take administrative leave, the spokeswoman said. FERC restored email and desktop virtualization systems enabling telecommuting early in the day, she said. Fifty-one percent of FERC employees are unable to work outside the office because of an electronic or other type of barrier and 23 percent more do not telework by choice, according to a 2010 Office of Personnel Management report on the government's telework capacity, suggesting that many of FERC's Washington staffers were unable to do their jobs Wednesday.

ITIF municipal broadband debate reveals strong passions on both sides

Of all the policy topics in telecom, few are debated with as much passion as municipal broadband networks -- and an event sponsored by the Information Technology & Innovation Foundation June 1 was a prime example of that dynamic in play.

Using the sort of formal debate process that many of us learned in high school, advocates and opponents discussed the thesis that “Governments should neither subsidize nor operate broadband networks to compete with commercial ones.” Jeffrey Eisenach, managing director and principal of Navigent Economics, supported that view. When a municipality passes legislation to fund a broadband project, it is essentially “coercing people to give up money, many of whom don't want to do it,” Eisenach said. Christopher Mitchell, director of telecommunications for the Institute for Self Reliance, countered that argument, noting that municipalities typically obtain funding through bonds. If local officials raise taxes to fund a broadband network without sufficient support, he said, they will lose their jobs when the next election comes around.

Benton

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