November 2011

White House limits feds' mobile devices to cut costs

An Obama Administration executive order aimed at cutting government waste includes a plan to trim "duplicative and unnecessary" employee information technology devices such as smartphones, laptops and tablets. Most of the duplication in federal employees' personal IT devices involves computers, not phones, said Cindy Auten, general manager of the Telework Exchange, an industry group that promotes working remotely. Especially in the early days of telework, many agencies presumed an employee working remotely needed two computers -- one for the home and one for the office -- rather than a single laptop. "Agencies are starting to be smart in asking employees and managers 'what do you need to be productive?' " Auten said. The executive order directs them to consider agencywide IT investments such as remote desktop services that limit the need for extra devices.

Tough gig for next Google DC chief

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.

Sen Durbin gains key support for revitalized Internet sales tax bill

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.

Allot MobileTrends Charging Report Shows 48% of operators are currently curbing data

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

Hill's Bills Drill Process Ills

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.

National Test of the Emergency Alert System -- Take the Post-Test Survey

On November 9, 2011, the Federal Communications Commission conducted a national test of the Emergency Alert System (EAS) over television and radio. The Rehabilitation Engineering Research Center for Wireless Technologies (Wireless RERC) is conducting a survey of people with visual and hearing impairment in order to understand the effectiveness and accessibility of EAS. Please take a few minutes to complete the post-EAS-test survey. If you need assistance completing the survey, please contact Salimah LaForce at 404-894-8297

11th Annual U.S. Telecoms Symposium

Phoenix Center
Thursday, December 1st
Washington, DC
http://www.phoenix-center.org/sym11.html

Speakers include:
• Congressman Lee Terry, Vice-Chair, Subcommittee on Communications and Technology - House Energy and Commerce Committee;
• Dr. Marius Schwartz, Chief Economist - Federal Communications Commission;
• Dr. Michael Katz, Professor of Economics - UC Berkeley;
• Dr. Michael Pelcovits, MiCRA;
• Michael Rollins, Managing Director - Citi Investment Research & Analysis;
• Hon. Michael Powell, President - NCTA;
• Hon. Steve Largent, President - CTIA; and
• James W. Cicconi, Senior Executive Vice President - AT&T Services, Inc.



Broadband Adoption Rises but Digital Divide Persists

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.

Google offers support to Android firms in lawsuits

Google will continue to offer support to firms using its Android system that are involved in legal disputes, its executive chairman Eric Schmidt said, as the Internet giant looks to cement alliances in the face of toughening competition.

Schmidt, wrapping up a three-city Asian tour in Taipei, also threw an olive branch to China, with whom Google fell out over hacking and censorship disputes, saying the company "wanted to serve China's citizens within the limits the government allowed." "We tell our partners, including the ones here in Taiwan, we will support them. For example we have been supporting HTC in its dispute with Apple because we think that the Apple thing is not correct," Schmidt told reporters during his first visit to Taipei. The support takes the form of information sharing, industry expertise and access to Google's patents for licensing and legal purposes, Schmidt said.

AT&T still dominates among iPhone carriers with the 4S

The iPhone 4S launched on three U.S. carriers simultaneously for the first time ever, but AT&T still takes home the gold in terms of the choices made by 4S customers when it comes to mobile networks, according to a new study by app analytics firm Localytics.

Localytics found that of the iPhone 4S devices running apps using its popular analytics platform, 56 percent use AT&T for voice and data services, while Verizon comes in second with 32 percent, and Sprint is a distant third with just 12 percent of all iPhone 4S impressions. Judging by the numbers, Sprint seems to have taken more customers from Verizon than from the market-leading AT&T, since the iPhone 4 split between AT&T and Verizon is 60/40. Localytics points out that the differences may be attributable to the fact that AT&T has a larger pool of existing subscribers who are eligible for contract renewal, and therefore subsidized pricing on iPhone hardware, whereas Verizon’s iPhone customers have just locked in to two-year contracts as of earlier this year, when the iPhone 4 made its debut on the network.