November 2011

INTERNET/BROADBAND

NEW NTIA BROADBAND ADOPTION REPORT
[SOURCE: National Telecommunications and Information Administration]
The Department of Commerce's Economics and Statistics Administration (ESA) and National Telecommunications and Information Administration (NTIA) released a report, “Exploring the Digital Nation,” that analyzes broadband Internet adoption in the United States. Overall, approximately seven out of ten households in the United States subscribe to broadband service. The report finds a strong correlation between broadband adoption and socio-economic factors, such as income and education, but says these differences do not explain the entire broadband adoption gap that exists along racial, ethnic, and geographic lines. Even after accounting for socio-economic differences, certain minority and rural households still lag in broadband adoption.
The report analyzes data collected through an Internet Use supplement to the Current Population Survey (CPS) of about 54,300 households conducted by the U.S. Census Bureau in October 2010. Earlier this year, NTIA released initial findings from the survey, showing that while virtually all demographic groups have increased adoption of broadband Internet at home since the prior year, historic disparities among demographic groups remain. Today’s report presents broadband adoption statistics after adjusting for various socio-economic differences. The principal findings of the report are:
Overall
Sixty-eight percent of American households used broadband Internet in 2010, up from 64 percent in 2009. Only three percent of households relied on dial-up access to the Internet in 2010, down from five percent in 2009. Another nine percent of households had people who accessed the Internet only outside of the home.
All told, approximately 80 percent of American households had at least one Internet user, whether inside or outside the home and regardless of technology type used to access the Internet.
Cable modems and DSL were the leading broadband technologies for home Internet adoption, with 32 percent and 23 percent of households, respectively, using these services.
Differences in Household Broadband Adoption
Households with lower incomes and less education, as well as Blacks, Hispanics, people with disabilities, and rural residents, were less likely to have Internet service at home.
Eighty-one percent of Asian households and 72 percent of White households had broadband at home, compared to 57 percent of Hispanic households and 55 percent of Black households.
Seventy percent of urban households had broadband at home, compared to 57 percent of rural households.
Households with school-age children were more likely to have broadband at home (78 percent) than the national rate. Older householders, particularly those ages 65 and older (45 percent), were less likely to have broadband at home.
Less than half (43 percent) of households with annual incomes below $25,000 had broadband access at home, while 93 percent of households with incomes exceeding $100,000 had broadband.
Average broadband adoption in 2010 varied by state from about half (52 percent) of all households to 80 percent.
Role of Socio-Economic Factors
Socio-economic differences do not explain the entire broadband adoption gap. For example, after accounting for socio-economic and geographic factors, Black and Hispanic households still lag White households in broadband adoption by 11 percentage points, though the gap between Asian and White households disappears.
After accounting for socio-economic and demographic factors, rural households still lag urban households in broadband adoption by five percentage points.
In contrast, differences in socio-economic characteristics do explain a substantial portion but not all of the broadband adoption lag among people with disabilities.
Reasons for Not Subscribing to Broadband at Home
The main reasons cited for not having Internet access at home were a lack of interest or need (47 percent), the expense (24 percent), and the lack of an adequate computer (15 percent).
Not surprisingly, individuals without broadband service at home relied on locations such as public libraries (20 percent) or other people’s houses (12 percent) to go online.
Long-term Trends in Internet and Computer Use
Between 2001 and 2010, broadband Internet use at home, regardless of technology type, rose from 9 percent to 68 percent of households.
Between 1997 and 2010, Internet use among households, regardless of technology type, rose from 19 percent to 71 percent.
More than three quarters (77 percent) of American households had a computer at home in 2010, up from 62 percent in 2003.
benton.org/node/105075 | National Telecommunications and Information Administration | B&C | GigaOm
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CONNECT TO COMPETE
[SOURCE: Federal Communications Commission, AUTHOR: ]
Federal Communications Commission Chairman Julius Genachowski applauded executives and nonprofit leaders from leading Internet service providers, technology companies and nonprofits for their unprecedented multi-billion dollar in-kind commitments to empower millions of families with broadband Internet, PCs, and digital literacy training, with zero cost to tax payers.
Participating National Cable & Telecommunications Association member cable companies will offer all eligible families two-years of $9.95 + tax broadband cable Internet, with a no installation/activation fee option and no modem rental fees (with an option to purchase a $10 modem).
Eligible families must (1) have at least one student enrolled in the Free School Lunch Program; (2) not be a current subscriber to broadband (or have subscribed in the last 90 days); and (3) not have an overdue bill or unreturned equipment to the participating service provider.
Participating companies include: Bend Cable, Bright House Networks, Cablevision, Charter, Comcast (via Internet Essentials), Cox Communications, Eagle Communications, GCI, Insight, Mediacom, Midcontinent, Sjoberg’s Cable, Suddenlink, Time Warner Cable.
Redemtech, a technology refurbishment company, has committed to offer a refurbished $150 + tax powerful laptop, or desktop with LCD monitor, to all eligible school lunch families, shipped to the home.
Microsoft, starting early next year, will work with its hardware partners to introduce a series of affordable, high-quality education computers, starting at $250, that include Windows and Office. Microsoft’s ongoing commitment to digital inclusion worldwide means they view access to broadband and a computer as a right for all, not a privilege for some.
Morgan Stanley has committed to contributing its significant microfinance expertise to assist Connect to Compete in its development of a microcredit program to help families afford the upfront cost of a PC. This program will also aim to provide financial literacy training and help families build credit history through successful loan repayment. These microloans will be provided by community-based financial institutions.
Altman Vilandrie & Company (AV&Co.), a strategy consulting firm, is contributing its industry expertise and analytic consulting capabilities to the Connect to Compete initiative. They will help integrate the generous public and private sponsor contributions into a sustainable program through the development of a business and operating plan.
The Appalachian Regional Commission, a federal partnership of the 13 Appalachian states, works to bring Appalachia into economic parity with the rest of the nation by creating sustainable economic opportunities and improved quality of life. ARC enthusiastically supports the Connect to Compete Initiative and will help assist in the planning and implementation activities within Appalachia.
Delta Regional Authority, a federal-state partnership that works for sustained community and economic development in the Delta region, will support Connect to Compete with a planning and development grant. DRA will also be integral to the planning and implementation phrases of the project in its region.
benton.org/node/105181 | Federal Communications Commission | FCC Chairman Genachowski | Connect to Compete partners | Multichannel News | The Hill | Connected Planet | Sen Rockefeller
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SENATE DEBATES NETWORK NEUTRALITY
[SOURCE: National Journal, AUTHOR: Josh Smith]
A Republican-led challenge to the Federal Communications Commission's controversial open Internet rules is little more than an extension of a tea party effort to "take government down," Senate Commerce Chairman Jay Rockefeller (D-WV) said. Senate Commerce Committee ranking member Kay Bailey Hutchison (R-TX) sponsored the resolution under the Congressional Review Act that would prevent the regulations from being implemented. She says her resolution has gathered 42 cosponsors. Sen Hutchison and other critics of the rules contend they are an abusive overreach by the FCC that imposes unnecessary restrictions on the traditionally free nature of cyberspace. By imposing such standards, the FCC risks undermining innovation, delaying new products, and putting U.S. companies at a competitive disadvantage, Sen Hutchison said. Sen Olympia Snowe (R-Maine) circulated a "dear colleague" letter, urging senators to vote for Hutchison's resolution. She said while she supports an open Internet, the FCC's rules aren't the way to do it. If any such regulations are needed, Sen Snowe argued, they should be enacted by Congress.
Sen. Jim DeMint (R-SC) called the rules “a regulatory nightmare.” "I am beginning to believe the FCC stands for the Fabricating a Crisis Commission because they are trying to create undue regulations for a problem that doesn't exist," said Sen DeMint. Sen. Marco Rubio (R-FL) punctuated several hours of Senate floor debate by forcefully dismissing arguments that overturning the FCC’s rules would jeopardize the freedom of the Internet. Sen Rubio went through a litany of innovations and achievements of the technology industry in recent years, including the expansion of broadband, tablet computers, mobile devices and the creation of jobs despite the recession, noting all took place before the FCC’s Open Internet Order.
Sen. Al Franken (D-MN) repeated his previous assertion that net neutrality is “the free speech issue of our time” and called the resolution a distraction from creating jobs. Sen Franken said opponents of net neutrality are driven by misinformation and noted that no major telecom firms have publicly backed the attempt to overturn the rules.
Network neutrality advocate Free Press noted the efforts of Sens. Maria Cantwell, Al Franken, John Kerry, Jay Rockefeller, Mark Udall and Ron Wyden: “We applaud the senators who stood up for the American people and opposed this dangerous resolution, which would eliminate the basic protections the FCC put in place to prevent Internet service providers from becoming the ultimate gatekeepers to the Web…. Regulating the few powerful corporations that control Internet access is not the same thing as regulating the content and applications that flow over this network. The only reason we’re having this debate today is because the Bush-era FCC made the wrong decision regarding its own authority over Internet-access services.”
benton.org/node/105182 | National Journal | The Hill – DeMint | The Hill – Rubio
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SENATE VOTE ON NETWORK NEUTRALITY
[SOURCE: New York Times, AUTHOR: Editorial staff]
[Commentary] The Senate is expected to vote on a resolution that would stop the Federal Communications Commission from enforcing rules that prohibit Internet service providers from discriminating against the transmission of content that might compete with their own. The resolution would render void the modest rules adopted by the FCC in December 2010. Stripped of authority, the commission would have a very difficult time protecting the Internet from those who clamp down on content for ideological reasons or profit. Repealing the rules would free service providers like phone and cable companies to block or slow down their competitors’ content — be it movies, songs or messages — when it is flowing through their broadband pipes. The Republicans’ deregulatory push would give companies like Comcast, AT&T and Verizon full control over Internet traffic. The failure to protect open, competitive broadband would be enormously harmful to a major channel of communications.
benton.org/node/105198 | New York Times
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MARKETPLACE FAIRNESS ACT
[SOURCE: Crain’s Chicago Business, AUTHOR: Paul Merrion]
Sen. Richard Durbin (D-IL) rebooted his Internet sales tax bill, picking up crucial GOP support by exempting small online retailers and making it easier for states to comply. Along with Sen. Mike Enzi (R-Wyoming) and Sen. Lamar Alexander (R-TN), the Sen Durbin wants to allow states to collect sales taxes from Internet retailers if they adopt one of two sales tax simplification options outlined in the legislation. The bill addresses a legal loophole, created by Supreme Court decisions predating the Internet, which allows online retailers to avoid paying state sales taxes that brick-and-mortar stores must remit. As online sales soared at the expense of traditional retailers, states and cities have missed out on billions in tax revenues. The bill is supported Amazon, which has opposed legislation in Illinois, California and other states to collect online sales taxes because of the complexity created by a state-by-state approach. Sears Holdings and other traditional retailers such as Wal-Mart Stores also back the measure. However, eBay still opposes the legislation, according to a tally of supporters and opponents provided by a lobbyist for interests that favor it.
benton.org/node/105167 | Crain’s Chicago Business | ars technica | PCMagazine
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NORQUIST AND THE ONLINE TAX BILL
[SOURCE: Politico, AUTHOR: Michelle Quinn]
Does supporting a federal online sales tax bill violate the no new taxes pledge? That’s a question Congress will wrestle with as it considers giving states the authority to compel online retailers to collect sales tax. And possibly waiting to pounce will be Grover Norquist’s Americans for Tax Reform, whose no-tax pledge has long inspired fear in Republican lawmakers mulling over a vote for anything resembling a tax. After years of little action on the issue, Congress is now considering several bills. Retail groups have recently lobbied the deficit-reduction supercommittee to include federal legislation on online sales tax as a giveback to states, which are likely to see a reduction in federal money. Proponents of a federal solution say there is no new tax involved. Federal legislation, they say, would simply mean online retailers and other remote sellers would collect sales tax already owed — and only if a state wants to compel them to do so. Norquist’s group won’t say definitively whether it will consider a vote for the measure as a violation of the group’s pledge, which focuses on the federal income tax. But a spokesman for the group hinted that it would not look kindly on supporters — a potentially nettlesome problem as they try to secure GOP backing.
benton.org/node/105185 | Politico
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ISPs AND TAXES
[SOURCE: ars technica, AUTHOR: Matthew Lasar]
A scathing new report on corporate tax breaks is out, and telcos and media companies figure prominently. Authored by Citizens for Tax Justice and the Institute on Taxation and Economic Policy, the survey focuses on 280 corporations that it concludes paid, on average, far less than the 35 percent corporate income tax tithe. "Over the three years covered by our study, the average effective tax rate for all 280 companies was only 18.5 percent," charges Corporate Taxpayers & Corporate Tax Dodgers, 2008-2010. "For the past two years, 2009 and 2010, the effective tax rate for all 280 companies averaged only 17.3 percent, less than half of the statutory 35 percent rate." AT&T, Comcast, and Verizon Communications appear in the study. The last company places number 19 in the survey's list titled "30 Corporations Paying No Total Income Tax in 2008-2010."
benton.org/node/105175 | Ars Technica
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OPEN RANGE
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
The House Commerce Committee is seeking info on a $267 million broadband development loan from the Rural Utilities Service to Open Range Communications, which has recently filed for bankruptcy. The loan precedes RUS' loans of billions under a broadband stimulus bill, and was approved in March 2008. Open Range apparently received the biggest loan the program issued, according to the legislators, which included both Republican and Democratic leadership. Open Range filed for bankruptcy on Oct. 6 and could leave the taxpayers on the hook for $73.5 million, the amount RUS had already ponied up. In addition, Open Range could owe another $26 million to businesses that did work for it, they said. The RUS program, which is headed by former FCC Commissioner Jonathan Adelstein, has come under fire from the Department of Agriculture's Inspector General, who raised concerns about the majority of the broadband loans and loan guarantees it reviewed ($340 million worth out of $599 million) either because of incomplete applications, defaulted loans and funds used for "inappropriate purposes."
benton.org/node/105190 | Broadcasting&Cable
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EMERGENCY COMMUNICATIONS

EAS TEST RECAP
[SOURCE: New York Times, AUTHOR: Brian Stelter]
At 2 p.m. Eastern time on Nov 9, all television channels and radio stations in the United States were supposed to be interrupted by a brief test of the nation’s Emergency Alert System. But, like most tests, some passed and some failed. Beginning at 2:01 p.m., viewers and listeners in many states said they saw and heard the alerts at the scheduled time, but others said they did not. There was no immediate explanation for the discrepancies, but that was one of the purposes of the test — to find out how well the system would work in an actual emergency. Certainly, viewers and listeners have grown accustomed to hearing the tones and reminders — “this is just a test” — when the systems are activated locally each week by broadcasters. But government officials said the national system had never been tested before as a whole, nor had it been used in an emergency, allowing the President to address the public. Many of the reported failures affected cable and satellite television subscribers, and some were quite puzzling. Some DirecTV subscribers said their TV sets played the Lady Gaga song “Paparazzi” when the test was under way. Some Time Warner Cable subscribers in New York said the test never appeared on screen. Some Comcast subscribers in northern Virginia said their TV sets were switched over to QVC before the alert was shown. Many other viewers and listeners reported that the alert arrived right on time at 2 p.m. Eastern. It halted digital video recorder playback in some households and surprised radio listeners in their cars.
In a statement around 2:40 p.m., the agencies said they were collecting data about the results of the test. “This initial test was the first time we have tested the reach and scope of this technology and additional improvements that should be made to the system as we move forward,” the statement read. “Only through comprehensively testing, analyzing and improving these technologies can we ensure an effective and reliable national emergency alert and warning system.” The agencies said they looked forward to working with media companies to “improve this current technology and build a robust, resilient and fully accessible next generation alerting system that can provide timely and accurate alerts to the American people.”
benton.org/node/105180 | New York Times
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SPECTRUM/WIRELESS

MOBILE DATA PRICING
[SOURCE: GigaOm, AUTHOR: Stacey Higginbotham]
It’s tough out there for carriers. After years of charging people 25 cents to send a few kilobytes of data via text messaging, they’re suddenly dealing with folks that want to watch YouTube videos on their mobile phones and pay a mere $50 for an unlimited plan. The economics don’t work, and as proof we only have to look at the death of the unlimited plan. Today only 13.5 percent of operators offer a “true” unlimited plan, while 25 percent offer an unlimited plan in name only (but with caveats such as throttling or even an undisclosed cap), according to data gathered by Allot Communications, a network optimization vendor. Allot surveyed 100 operators to discover how they price mobile broadband and discovered about 80 percent had already moved to some form of volume-based pricing (think buckets of bytes) while 35 percent were trying to charge based on the applications used. The percentages don’t add up because some operators offer both types of plans. The end game for operators is to figure out how to get people to use less data or pay more for the privilege, while also steering users to content that makes users happy without straining the network. So maybe they offer unlimited Facebook and charge more for Netflix. After all, the last thing they want to do is to scare people from signing up for data plans for fear of expensive overage fees.
benton.org/node/105072 | GigaOm
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MOBILETRENDS
[SOURCE: Allot Communications, AUTHOR: Press release]
Allot Communications, a supplier of service optimization and revenue generation solutions for fixed and mobile broadband service providers, released its inaugural Allot MobileTrends Charging Report which shows that 35% of operators are already implementing Value-based Charging strategies such as Bill-shock prevention and Social Networking plans that make applications such as Facebook, MySpace & Twitter zero-rated. The MobileTrends Charging Report is based on publicly available data, collected during Q3, 2011 from over 100 mobile operators worldwide. Operators are moving away from All-you-can-eat data plans towards Volume-based models, aimed at curbing usage, deferring investments and increasing ARPU. According to the Allot MobileTrends Charging Report:
• 35% of operators sampled are already offering Value-based Charging plans, such as zero-rated Facebook
• Only 13.5% of operators sampled are currently offering ‘true unlimited’ plans
• 26% of operators sampled already have revenue sharing deals and charging models in place
• 48% of operators sampled are currently curbing data overage
• 15% of operators sampled charge for tethering, mainly in North America and EMEA
• Cloud music providers, Spotify, Pandora and Rhapsody are driving the revenue sharing charge
benton.org/node/105166 | Allot Communications
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LIFELINE AND SPRINT
[SOURCE: Wall Street Journal, AUTHOR: Greg Bensinger]
Brenda Parker lives in government housing, can't work because of chronic medical problems and depends on federal disability checks. She is just the kind of customer Sprint Nextel is looking for. Parker, of Shallotte (NC), is one of millions of low-income Americans who get 250 minutes a month of free cellphone service through a little-known government subsidy program called Lifeline. The program, funded by charges levied on cellphone bills nationwide, pays carriers such as Sprint as much as $10 a month per customer to be used toward a free or discounted wireless plan. For Sprint, which offers free service under its Assurance Wireless brand, these plans provide a thin slice of profit and a chance to make more money if customers go over their small initial allotment and need to buy more minutes or texts. The program also brings in a precious commodity in the saturated U.S. wireless market: subscriber growth. In any given period, Sprint has said, more than 50% of its net new customers have come to the carrier via the free service. Lifeline has been growing rapidly in recent years, reflecting both the ferocity of the fight for U.S. wireless customers and the dire financial condition of many consumers as the economy continues its halting recovery.
benton.org/node/105195 | Wall Street Journal
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GPS TRACKING
[SOURCE: Los Angeles Times, AUTHOR: Editorial staff]
[Commentary] Should the police be allowed to affix an electronic tracking device to a suspect's car without a warrant and follow his every movement for a month? That was the question at an oral argument at the Supreme Court. The justices expressed unease with such pervasive surveillance, with one comparing it to George Orwell's "1984." Their misgivings reflect a sense on the part of many Americans, including this editorial board, that there's something creepy about round-the-clock electronic surveillance. But when they decide the case of Antoine Jones, a suspected drug dealer who was arrested after being monitored by a global positioning system, they will have to base any decision in Jones' favor not on creepiness but on the Constitution. Fortunately, that document, interpreted in light of technological advances, supports a ruling that GPS surveillance without a warrant violates the 4th Amendment. A ruling for the defendant wouldn't require an end to GPS tracking. All it would mean is that police would have to obtain a warrant before making use of a device that the framers of the 4th Amendment never could have conceived of.
benton.org/node/105194 | Los Angeles Times
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LOBBYING

SUNLIGHT ON TWEETS
[SOURCE: Politico, AUTHOR: Dave Levinthal]
The nonpartisan Sunlight Foundation is launching a tool designed to track the personal Twitter activity of Washington’s influence class. Initially, 235 lobbyists appear on the Sunlight Foundation’s list, which its posting on its Twitter handle, @SunFoundation. While these lobbyist Twitter accounts have always been public, the new list makes it easier for the public to monitor all the accounts at once, the Sunlight Foundation’s Gabriela Schneider said. “This is a way for Americans and people online to see how certain lobbyists are wielding their influence,” Schneider said. “This gives you a window on how Washington works, in real time.” The group is planning to highlight several lobbyists in particular, such as Gregg Hartley, vice chairman and chief operating officer at Cassidy & Associates — an active Twitter user (@gregglhartley) who has this year tweeted about his meetings with various congressmen and pushing for poker legalization. Other lobbyists will be featured for their more personal and overtly political tweets, such as one who calls President Barack Obama a “liar” and another who enjoys quoting old-school rap lyrics.
benton.org/node/105184 | Politico
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NEXT DC CHIEF FOR GOOGLE
[SOURCE: Politico, AUTHOR: Tony Romm]
There’s an opening for one of the most plum tech gigs in Washington — the head of Google’s D.C. shop — and the search giant’s decision on a successor to Alan Davidson could speak volumes about the company’s strategy to contend with mounting problems in the nation’s capital. Speculation is already swirling over whom Google might hire to replace Davidson, who opened the company’s Washington operation six years ago as a one-man shop in shared rental space. Will the company tap a Republican as it seeks to shed its reputation as a liberal stalwart? A big-name former lawmaker or administration official with Mitch McConnell or Nancy Pelosi on speed dial? A tech policy wonk? Or, perhaps, all of the above? Google’s new D.C. chief will have on his or her plate the largest challenge to date for the Mountain View, Calif.-based search giant: a broad, ongoing federal antitrust probe at the Federal Trade Commission. The company is also confronting major policy challenges on the privacy and intellectual property fronts. Some tech industry officials said by hiring a team of political veterans, Davidson has already done much of the heavy lifting to make Google a force in Washington.
benton.org/node/105168 | Politico
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MEDIA & ELECTION

TV STATIONS BRACE FOR POLITICAL ADS
[SOURCE: MediaPost, AUTHOR: Wayne Friedman]
Too much of a good thing? TV stations will be getting a whiff of this next year when it comes to a really big kick up of TV political ad revenues -- estimated to net north of $3.2 billion. The rub of these big election years always hits regular, nontraditional political advertisers like a black-eye. That's because political advertising -- by FCC mandate -- not only gives marketers the "lowest unit charge," it allows political spots to pre-empt a TV station's more regular, nontraditional political media. Regular TV advertisers can be left in the lurch -- not too good for any media planning strategy. Some ad agencies are looking to get around this by building packages around additions of "sponsorships," "brand mentions" and buys on a station's Internet business. The belief -- from those media agencies -- is that these added pieces of a TV buy will help lessen the blow TV advertisers might take in 2012.
benton.org/node/105171 | MediaPost
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CONTENT

WYDEN VOWS TO BLOCK PROTECT IP
[SOURCE: Politico, AUTHOR: Jennifer Martinez]
Can one senator stop the speeding locomotive of the PROTECT IP Act, a controversial online copyright bill backed by Hollywood, the Chamber of Commerce, pharmaceutical makers and a bipartisan group of 40 senators? Sen. Ron Wyden hopes so. The Oregon Democrat is threatening to filibuster the PROTECT IP Act if it reaches the Senate floor unchanged by the end of the year. “I’ve already announced a public hold, put it in the Congressional Record and — in its current form — I will fight this every step of the way,” Sen Wyden said. He hopes that a long, drawn-out battle will dampen its chances of getting floor time as the number of working days on the congressional calendar dwindles. The PROTECT IP Act is aimed at shuttering foreign websites that peddle pirated movies, knockoff Louis Vuitton handbags and fake Viagra. It’s got some major backers touting the need to protect American content and goods from online piracy. It also has some detractors — such as Internet companies that would be on the hook for enforcing parts of the law.
benton.org/node/105186 | Politico
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LABOR

SILICON VALLEY DIVERSITY
[SOURCE: CNNMoney, AUTHOR: Julianne Pepitone]
How diverse are Silicon Valley's offices and executive suites? Activists have been trying for years to answer that question, but some of the industry's largest and most influential employers -- including Apple, Google, Amazon and Facebook -- closely guard that information. Every U.S. company with more than 100 employees is required to file a one-page form each year with the Equal Employment Opportunity Commission (EEOC), an independent federal agency. Called the EEO-1, the form categorizes U.S. workers by their race and gender. It's a blunt and imperfect measurement tool, but it's also the only hard data available for tracking the diversity of corporate America. CNNMoney filed a Freedom of Information request in August seeking EEO-1 data from 20 companies: The tech industry's 10 biggest firms by annual sales and 10 smaller but influential firms, including Facebook and Twitter. The EEOC denied the request in full, saying it is legally prohibited from releasing that information. CNNMoney later filed the same request with the Department of Labor, and is awaiting a response.
Vivek Wadhwa writes that one of Silicon Valley’s most glaring faults is that it is male-dominated. You don’t find many women in the executive teams of tech firms. Apple, for example, does not have a woman in its executive leadership. Other than a handful of notable exceptions like Padmasree Warrior of Cisco and Sandy Jen of Meebo, women chief technology officers are nowhere to be found. It’s equally bad in the venture capital world. Only one of the 84 venture capitalists on the 2009 The Funded list of top VCs was a woman.
benton.org/node/105071 | CNNMoney | Washington Post
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HEALTH

FCC NOVEMBER AGENDA
[SOURCE: Federal Communications Commission, AUTHOR: Press release]
Federal Communications Commission Chairman Julius Genachowski announced that the following items will be on the tentative agenda for the next open meeting scheduled for Wednesday, November 30, 2011:
Additional Spectrum for Medical Radiocommunication Devices: The Commission will consider a Report and Order that allocates spectrum in the 413-457 MHz band and adopts service and technical rules to allow the use of new types of implanted medical devices that use functional electric stimulation to, among other things, restore sensation, mobility, and function to paralyzed limbs and organs.
Presentation on Commission Efforts to Address Barriers to Broadband Adoption: Commission staff will provide a presentation on the Commission’s recent broadband adoption efforts, including a first-of-its-kind national effort to address the barriers to broadband adoption, digital literacy and the employment skills gap.
benton.org/node/105189 | Federal Communications Commission
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TECH AND HEALTH CARE
[SOURCE: New York Times, AUTHOR: Frank Moss]
[Commentary] We are in the early phases of the next big technology-driven revolution, which I call “consumer health.” When fully unleashed, it could radically cut health care costs and become a huge global growth market. Imagine a transformation in which advances in information technology, biology and engineering allow us to move much of health care out of hospitals, clinics and doctors’ offices, and into our everyday lives. It would begin with a “digital nervous system”: inconspicuous wireless sensors worn on your body and placed in your home would continuously monitor your vital signs and track the daily activities that affect your health, counting the number of steps you take and the quantity and quality of food you eat. Wristbands would measure your levels of arousal, attention and anxiety. Bandages would monitor cuts for infection. Your bathroom mirror would calculate your heart rate, blood pressure and oxygen level. Then you’d get automated advice. Software that could analyze and visually represent this data would enable you to truly understand the impact of your behavior on your health and suggest changes to help prevent illness — by far the most effective way to cut health care costs. [Moss is an entrepreneur and former director of the M.I.T. Media Lab]
benton.org/node/105192 | New York Times | NYTimes - Up wristband
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FCC REFORM

FCC REFORM BILL
[SOURCE: CommLawBlog, AUTHOR: Rob Schill]
On November 2, Rep. Greg Walden (R-OR), Chairman of the House Commerce Committee’s Subcommittee on Communications and Technology, and Sen Dean Heller (R-NV) took the wraps off legislation aimed at improving regulatory process at the Federal Communications Commission (FCC). Just how might that be accomplished? According to the bills’ sponsors, by imposing a number of procedural constraints on the FCC that would force it to act more transparently, more efficiently, and within more predictable time frames. In the nitty-gritty details of the bills there are some interesting highlights. When issuing a notice of proposed rulemaking (NPRM), the FCC would have to:
provide comment and reply comment periods of at least 30 days each;
expressly identify a previous action (e.g., Notice of Inquiry, prior NPRM, court order) in the preceding three years from which the new NPRM is a “logical outgrowth”. Alternatively, the FCC could make a finding that the new NPRM will create no “additional burdens on industry or consumers” or that an NOI would be “impracticable, unnecessary or contrary to the public interest”;
include the specific language of the proposed rule or rule amendment; and
propose “performance measures” by which the effectiveness of the new/amended rule would be measured.
In adopting new rules or amending existing ones, the FCC would: first have to identify and analyze the “specific market failure, actual consumer harm, burden of existing regulation, or failure of public institutions that warrants the adoption or amendment”; and then provide a “reasoned determination” that the benefits of the proposal would outweigh its costs. Adopted rules/amendments would also have to include “performance measures” based (to the extent possible) on data already collected by the FCC.
These are broad proposals that would substantially alter, if not the way the current FCC conducts much of its business, then the way future Commissions are required to do business. The prospects for passage are far from clear – and a November 16 markup should further clarify the bill’s level of support – but the fact that that process has been formally initiated should send a clear message to the FCC that change may be on the way.
benton.org/node/105165 | CommLawBlog
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CAC RECOMMENDATIONS
[SOURCE: Federal Communications Commission, AUTHOR: ]
On November 4, the Federal Communications Commission’s Consumer Advisory Committee adopted recommendations regarding Lifeline/Link Up reform, public broadcasting funding, and the November 9 test of the Emergency Alert System.
Concerning Lifeline and Link-Up programs, CAC said that that if the FCC wants to reach all intended participants of these programs, any “one per household” rule, if adopted, must legitimately encompass consumers that may be living in group homes or who are homeless. CAC recommends that the FCC not limit but rather expand eligibility and improve service for the
low-income community.
The CAC recommended that the FCC, in its interaction with the Administration and with the Congress, support continued federal funding of the Corporation for Public Broadcasting so as to enable CPB to continue its support for public broadcast stations, including those providing service to rural, tribal, native, and disability communities.
On the EAS test, the CAC recommended that in addition to assessing the reliability and effectiveness of the public alerting mechanisms of EAS, the FCC and the Federal Emergency Management Agency specifically examine (1) the effectiveness of its outreach efforts to the public (including outreach targeted to persons with hearing, vision, and dual sensory loss disabilities); and (2) the accessibility of information available to consumers (including persons with hearing disabilities) during the National EAS test. The CAC further recommended that FEMA, the FCC, and other EAS partners specifically conduct targeted outreach to, and design future EAS tests and information, to meet the needs of consumers with hearing, vision, and dual sensory loss disabilities.
benton.org/node/105176 | Federal Communications Commission | CPB recommendation | EAS recommendation
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STORIES FROM ABROAD

MONOPOLY PROBE IN CHINA
[SOURCE: Wall Street Journal, AUTHOR: Loretta Chao]
Chinese officials unveiled an unusual investigation into two major state-controlled companies over alleged monopolistic activity in the market for broadband Internet service, in a big test for China's three-year-old antitrust law. The probe against telecom giants China Telecom Corp. and China Unicom (Hong Kong) Ltd. -- outlined by a senior antimonopoly official -- marks the highest-profile domestic monopoly case against major companies backed by Beijing. The state-run Xinhua news agency said the probe is China's first national case involving large enterprises under a new 2008 antimonopoly law. In the past, major state-owned companies have been largely exempt from such enforcement efforts, with their status as monopolies or oligopolies carefully tended by the government. The highest-profile cases so far have been aimed at foreign companies, such as Coca-Cola Co.'s failed $2.4 billion bid for China Huiyuan Juice Group Ltd. two years ago. Li Qing, deputy director of the price supervision and antimonopoly department of China's National Development and Reform Commission, said that the agency believes the two state-controlled operators are using what she said was a roughly two-thirds market share to charge rivals higher fees for broadband access while failing to optimize network speed. The NDRC—China's top economic-policy body—said in a statement to Xinhua that results of the probe would come out soon, though it didn't specify a time frame.
benton.org/node/105070 | Wall Street Journal
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EU PRIVACY LAW
[SOURCE: New York Times, AUTHOR: Kevin O’Brien]
The European Commission is planning a legal change next year that may prompt US Web giants like Google and Facebook to rethink how they store and process consumer data, raising the prospect of a trans-Atlantic dispute over Internet privacy. The European justice commissioner, Viviane Reding, said she planned to insert wording into a revision of the Continent’s main data privacy law that would require non-E.U. companies to abide by Europe’s stricter rules on data collection or face fines and prosecution. Reding, who has criticized Facebook’s practice of storing and retaining logs of personal data, even when a user attempts to delete it, intends to add the tougher sanctions to Europe’s revised Data Protection Directive, which she expects to present in January.
benton.org/node/105196 | New York Times
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November 2011

November 10, 2011 (Broadband news)

Taking Aim at Internet Rules

Backgrounder on 'net neutrality'

EU to Tighten Web Privacy Law, Risking Trans-Atlantic Dispute

For Sprint, Free Pays Off

Is GPS tracking too '1984'?

Google’s Chief Works to Trim a Bloated Ship

Our High-Tech Health-Care Future

Consumers dislike ads on social networks

House Commerce Committee Seeks Documents on RUS Broadband Loan to Bankrupt Open Range