December 2011

Request for Connect America Fund Cost Models

On November 18, 2011, the Federal Communications Commission released the Universal Service Fund/Intercarrier Compensation Transformation Order, which comprehensively reforms and modernizes the universal service and intercarrier compensation systems into a new Connect America Fund (CAF) to ensure that robust, affordable voice and broadband service are available to Americans throughout the nation. Among other things, the FCC adopted a methodology for providing CAF support in areas served by price cap carriers that will use a forward-looking cost model to estimate the costs of deploying broadband-capable networks in high-cost areas and identify at a granular level the areas where support will be available. Using the cost model, the FCC will offer each price cap local exchange carrier (LEC) annual support for a period of five years in exchange for a commitment to offer voice service across its service territory within a state and broadband service to supported locations within that service territory. The FCC also intends to use the forward-looking cost model to identify extremely high-cost and remote areas (in both price cap and rate-of-return territories) that should receive support from the Remote Areas Fund. As with the current model, the FCC expect that the new model will be readily available to support recipients and the public for their ongoing use.

The goal is to adopt a specific model to be used for estimating support amounts in price cap areas by the end of 2012 in order to provide support beginning January 1, 2013. To meet this timetable and to ensure that interested parties have adequate time to evaluate the models and inputs under consideration, the Wireline Competition Bureau requests parties to submit forward-looking cost models, consistent with the FCC’s order, for consideration in this proceeding as soon as possible, but no later than February 1, 2012. Parties should notify the Bureau of their intention to do so no later than three days after publication of this public notice in the Federal Register or by December 30, 2011, whichever comes later, so that there is sufficient time before the February 1 deadline to craft the terms of any protective order(s) necessary to resolve any issues related to licensing of third party data and making appropriate arrangements for providing access to the public

ACA Says NFL Deal Could Be 'Calamity' for Consumers

American Cable Association President Matt Polka suggests the new NFL football deal and its $27 billion price tag is running in full pads and cleats over consumers on its way to the bank.

"Reports that CBS, NBC and Fox are expected to pay hyperinflationary fee increases to the NFL are a calamity for consumers and should be a clarion call to policymakers in Washington, DC," said. He argues that the tackling dummies in the game of escalating sports rights are "the nine out of 10 U.S. households that subscribe to cable and satellite services and are denied any opportunity to opt out of paying for the channels on which these NFL games will appear." Polka says that broadcasters can pay those billions to the NFL if they like, but should not be able to rely "on the government's broken retransmission consent and cable carriage rules as the means for them to recoup the cost of their corpulent NFL contracts."

ESPN Scores $500 Million, Multimedia Rights Pact For NCAA Championships

ESPN has reached a new multiyear agreement with the NCAA under which it has secured expanded multimedia rights to 24 collegiate championships, including the women's Division I basketball tournament. The deal, through the 2023-24 academic year, also covers exclusive multimedia rights outside the U.S., its territories and Bermuda for the Division 1 Men's Basketball Championship. The new agreement, which takes effect immediately, also provides expanded coverage of each round of the NIT Season Tip-Off and all games from the
NIT Postseason Tournament across the ESPN networks.

The deal, which supersedes the three remaining years of the current contract, is valued at some $500 million over 14 school years, according to the NCAA.

Under the new pact, ESPN and its networks retain exclusive coverage of the Division I Women's Basketball Championship and broad rights covering the NCAA Division I Football Championship, plus the men's and women's baseball and softball World Series, swimming and diving, lacrosse and soccer championship action. ESPN is also adding coverage of seven NCAA championships: Division I women's gymnastics, men's and women's fencing, women's lacrosse, men's and women's outdoor track & field and women's bowling. ESPN will also air additional preliminary round coverage of selected NCAA championships, including Division I football (FCS), women's volleyball, softball and baseball.

The Power of Shutting Up in the Internet Age

[Commentary] If you come across content which you find disagreeable, distasteful, or just plain idiotic, it might be best to just... shut up.

Don't waste your time firing up your righteous indignation, raking the author over the coals in the comment section, or forwarding message to your friends under the heading of "can you BELIEVE this?!" Just move on. Go to a different post, or a different site, or maybe get off the Internet entirely and do something in real life. Not only do your responses raise your own blood pressure, but in the world of the Internet, those comments are your votes. The voting metaphor itself, of course, isn't limited to the Internet. In retail, for example, it's often said that you vote with your wallet. You buy the products you find valuable and ignore the others. Widely bought products turn a profit, widely ignored products prove unmarketable, and manufacturers learn what to keep making and what to abandon. This way, it doesn't take long for the garbage to get identified and tossed out. Of course, when you're shopping, it's fine to commiserate with a friend about your disgust over a certain product. As long as you don't buy it, your vote isn't cast. Things are different on the Internet. Here, every comment, share, and forward is a vote. Every email you open has the potential to alert the sender that it caught your eye. Every click on a blog post casts a vote for it to be displayed to other people. Every ounce of attention, positive or negative, feeds more power to the content receiving it. That's the power of shutting up: it keeps you from voting for what you despise.

PBS Kids: Ratings Rise Buys New Sponsors

PBS Kids programming block says it has seen a strong ratings rise in nearly every demographic recently versus a year ago. That's especially true for shows "Curious George" and "Super Why," per Nielsen's live plus seven day ratings data from Sept. 27, 2010 to Sept. 25, 2011. As a response, PBS Kids has picked up new corporate sponsors -- kids shoemaker Stride Rite which launched in September on "Curious George" and education company, Age of Learning, starting up in November for "SuperWhy" and "Wild Kratts." In particular, PBS Kids says it made big gains with kids 6-8, growing 30% year over year.

Appropriations bill hikes e-government fund

A joint House and Senate 2012 appropriations bill splits apart two funds that promote transparency initiatives, the e-government fund and the Federal Citizen Services Fund, a victory for champions of digital open government.

The conference bill appropriates $12.4 million to the e-government fund, up from $8 million in 2011. That figure appears to be a compromise between a House figure of about $15 million for e-gov and about $6 million in the Senate version. Because the e-gov fund had been combined with the Federal Citizen Services Fund in both chambers it's impossible to provide precise funding levels. White House officials and transparency advocates had criticized combining the two funds, saying that would water down e-gov's mission of promoting Web-based transparency across government and possibly endanger specific e-gov projects such as Data.gov, a repository for federal data sets, USAspending.gov, which tracks spending trends, and the Federal IT Dashboard, which drills down into information technology spending.

Defense bill amendment seeks to block LightSquared

Rep Mike Turner (R-OH) added language to the Defense authorization bill barring the Federal Communications Commission from approving LightSquared’s planned wireless network unless the Defense Department certifies it would not interfere with military GPS.

The House passed the Defense bill Dec 14 after President Barack Obama dropped his threat to veto the measure over provisions governing the detention of terror suspects. The Senate is expected to vote on the bill by the end of the week. LightSquared has invested billions of dollars in plans to launch a nationwide wholesale wireless broadband service, but it has come under fire since tests earlier this year revealed its network could cause problems for GPS devices. Rep Turner’s amendment requires the Defense Department to report to Congress every 90 days on the potential for GPS interference from LightSquared’s network. But FCC officials said they have no intention of allowing LightSquared, or any company, to launch a service that will disrupt GPS.

Watchdogs: Perry team might have violated campaign finance laws

Two watchdog groups called on the Federal Election Commission to look into possible infringements by Republican presidential candidate Rick Perry’s campaign and a pro-Perry super-PAC.

Make Us Great Again might have shared videos produced by the political action committee with the Perry campaign for free or might not have charged the correct amount, Campaign Legal Center and Democracy 21 said. “The Perry campaign is prohibited from accepting such in-kind contributions with a value exceeding the $2,500 contribution limit and, further, Super PACs are prohibited altogether from making contributions to candidates,” Campaign Legal Center attorney Paul Ryan said. “It appears the Perry campaign and Make Us Great Again likely violated these laws and the FEC needs to investigate.” The two groups, which plan to file a complaint urging investigation with the commission, cite Politico reports as evidence that the groups shared campaign footage. Three portions of footage used in campaign ads created by Make Us Great Again were also used by Perry’s campaign, the release states.

FBI denies using controversial cellphone tracking software

FBI Director Robert Mueller told lawmakers that his agency has not used data from Carrier IQ, a controversial cellphone tracking software company, in its investigations.

"We have neither sought nor obtained any information from Carrier IQ in any one of our investigations," Director Mueller said in response to questioning from Sen. Al Franken (D-MN). Earlier this week, the FBI denied a news website's request under the Freedom of Information Act to release information about its use of the tracking software, sparking widespread speculation that law enforcement agents were using Carrier IQ to snoop on users. The FBI said any records were exempt from disclosure because they were related to “a pending or prospective law enforcement proceeding.” But Director Mueller said the agency was just using a "standard exemption" and has not actually used Carrier IQ in any investigations. Sen Franken pressed Director Mueller on whether the FBI has obtained Carrier IQ data from wireless companies. "I don't believe so," Director Mueller said, but he added he would have to check.

MPAA Volunteers Timeline for Captioning Archival TV Shows Online

The Motion Picture Association of America has pitched the Federal Communications Commission an alternative timeline and more holistic approach to providing closed captioning for archival Internet-delivered TV shows to avoid what it suggests is the almost-impossible task of tracking down shows re-airing on cable and broadcast individually.

On Sept. 19 the FCC released its proposals for implementing the Twenty-First Century Communications & Video Accessibility Act, which requires the FCC, by Jan. 12, 2012, to come up with new regulations requiring closed captioning on IP-delivered video that contained captions when it was first aired on TV. MPAA said its "comprehensive" and "systematic" voluntary approach to captioning was preferable to the scattershot approach proposed by the FCC that would result in random episodes based on the date they were re-aired on television. "Attempting to search for and replace uncaptioned content with captioned content on potentially thousands of Web sites on an episode-by-episode basis is so logistically complex that it would be difficult if not impossible for content owners and their distribution partners to comply." MPAA also argued that the undertaking was so massive that the FCC's timetables -- six months and twelve months for some categories -- was unrealistic, particularly since it would also be working on captioning all new Internet-delivered TV shows going forward. MPAA's proposal is that, within 24 months of the effective date of the rules, content owners would caption all full-length content hosted on their wholly-owned and operated Web sites that is licensed for TV -- broadcast of pay -- and aired on or after Jan. 1, 1998, when the TV captioning requirement first kicked in. Members would pledge within 48 months to provide captions to authorized third-party Web sites of all theatrical films produced on or after Jan. 1, 1998 and licensed for TV.