December 2011

Lessons from the Facebook settlement (even if you're not Facebook)

The terms of the FTC's proposed settlement apply only to Facebook. But to paraphrase noted legal scholar Bob Dylan, companies that want to stay off the law enforcement radar don't need a weatherman to know which way the wind blows. What practical pointers can your business take from the Facebook case and other recent FTC actions dealing with consumer privacy?

  1. Promises, promises. Not making any privacy promises? Think again. Reread your privacy policy to see just what you're telling customers and visitors you do with their information.
  2. Legal-ease. Now that you have your privacy policy in front of you, show it to a real person — your receptionist, the guy in the warehouse, a member of your family. If they're not clear on what it says, chances are your customers aren't sure either.
  3. Attitudes, not platitudes. Some retailers lace their privacy policies with lofty language, but don't back their words up with actions.
  4. Color my world. How about giving your creative team a crack at rebooting the look of your privacy policy?
  5. Ch-ch-ch-changes. Wise marketers call customers' attention to the proposed change and get their express OK first. Just editing what you say in your privacy policy won't alert them to what you plan to do.
  6. Time for a tech tune-up. If it's been a while since you wrote your privacy policy, reconsider it in light of new technology you've put in place.
  7. Natural resources. You've got a business to run, so save time and money by using free resources from the FTC.

US Cellular: We’ll take the iPhone when Apple gives us LTE

It’s a common misconception that Apple is picking winners and losers among the wireless operators by bestowing or withholding the iPhone, but U.S. Cellular and its parent company TDS prove otherwise.

TDS CEO Ted Carlson told attendees of a UBS analyst conference that U.S. Cellular is waiting for Apple to offer a more “cutting edge” iPhone before U.S. Cellular would be willing to take the risk of selling it. By cutting edge, U.S. Cellular means LTE. In November, U.S. Cellular revealed that Apple had offered it the CDMA variant of the iPhone, but it declined, saying it couldn’t make the economics work. That makes a lot of sense in this case: selling the iPhone requires enormous upfront subsidies from wireless operators, leading U.S. Cellular to question the model’s profitability. In addition, the smartphone takes a tremendous toll on operators’ data networks. Other regional operators like C Spire have risen to the challenge, but C Spire doesn’t have what U.S. Cellular has: a big, dense, data-hungry market like Chicago.

Public Knowledge Names New Board Members Corbett, McLaughlin and Werbach

Public Knowledge welcomed three new members to the organization’s board: Maura Colleton Corbett, Andrew McLaughlin and Kevin Werbach.

Maura Colleton Corbett is the president and founder of the Glen Echo Group. She brings 20 years of communications, public affairs and coalition building experience to the Glen Echo Group, which provides senior-level strategic counsel to clients faced with complicated issues affecting the high-technology industry including Internet policy, wireless technologies, broadband competition, deployment and applications, and content-related policy issues including privacy, security and copyright. Corbett received the 2010 Women in Technology Leadership Award, for her demonstration of exemplary leadership skills and exceptional results in community-related work.

Andrew McLaughlin, who recently began a new assignment as a vice president of Tumblr. He is the former executive director of Civic Commons, a new non-profit that help cities and other governments share and implement low- cost technologies to improve public services, management, accountability, transparency, and citizen engagement. From 2009-2011, McLaughlin served on President Obama's White House staff as Deputy Chief Technology Officer of the United States and was a member of the a member of the Technology, Innovation and Government Reform cluster of the Obama/Biden Transition Team. From 2004-2009, he was Director of Global Public Policy at Google.

Kevin Werbach is Associate Professor of Legal Studies and Business Ethics, at the Wharton School at the University of Pennsylvania. His research addresses strategic and public policy issues at the intersection of law, business, and technology. He is the also the founder of Supernova Group, a technology analysis and consulting firm. He organizes the annual Supernova conference. Werbach served on the Obama Administration’s Presidential Transition Team, and was employed as an expert advisor on broadband policy to the FCC and National Telecommunications and Information Administration.

Universal access, open Internet and the marketplace of ideas

[Commentary] Long before the advent of the Internet or cable TV we realized that the key to a healthy democracy is a free and open marketplace of ideas.

From this human rights' perspective we can see that our broadband media systems deliver more than just voice, data, video and commerce -- in a real sense they deliver liberty and justice as well. Whether our communications travel on the ground over wire lines of copper and optic fiber, or wirelessly over the airwaves, they always traverse public spaces. So, the telecommunications networks that deliver our media and broadband Internet services are subject to laws and regulations that reflect public policy. Who should have a voice, and how do we keep robber barons and profiteers from controlling or monopolizing these essential networks? There are laws and regulations at federal, tribal, state and local jurisdictions that shape our communication networks and determine how we connect -- protecting privacy, restricting censorship, providing for universal service, ensuring localism, diversity and competition, etc. With all the technical and legal complexity involved, how can we figure out the best policies?

[McLaughlin is a digital ecologist, serving as executive director of Access Humboldt]

A Strategic Plan for the FCC: The Future Ain't What it Used to Be

[Commentary] Is the Federal Communications Commission’s expert staff of engineers, economics, and legal experts being manipulated or overruled to support a political agenda?

Unfortunately, that appears to be the inescapable explanation for at least some of the agency’s strange behavior. But something deeper and more disturbing is happening. The agency has many opportunities to stray, largely because, when it comes to broadband and the Internet revolution more generally, the FCC has no playbook to work from. The Commission, quite simply, has lost the ability to keep up with the remarkable pace of innovation in communications technology – the same technology whose deployment the FCC was created to facilitate. Congress is partly to blame. It last made significant changes to the agency’s charter in 1996, well before the Internet revolution reshaped the landscape of telephone, radio, television, and mobile communications. Those innovations, which have spawned an almost magical new world of information interactions for U.S. consumers, also render obsolete much of the agency’s governing law. The failure of communications law to keep up—perhaps inevitably, given the high-speed pace of technological innovation–has undermined the agency’s ability to pursue its prime directive to “make available…rapid, efficient, Nation-wide, and world-wide wire and radio communication services with adequate facilities at reasonable charges.” Everything from the FCC’s organization chart to its management paradigm for allocating radio spectrum has mutated into perilous anachronisms.

Why tech firms make a mistake by not catering to seniors

[Commentary] Americans older than 65 now number 40 million — that’s roughly 13 percent of our population.

The U.S. Census Bureau says that 11 million are older than 80, and, if the seniors I have encountered are any indication, very few of them are going to learn to use the spectacular, innovative and intuitive devices younger consumers can’t seem to live without. Still, shockingly few companies are providing pragmatic technologies to aid these 40 million people in their lives. In my work, I’m constantly amazed by the antiquated or inadequate technology used to serve the elderly. The “I’ve fallen and I can’t get up” buttons are almost the size of garage door openers, and seniors are supposed to wear them around their necks at all times. What’s more, they are supposed to somehow manage to push them after they’ve fallen and lost consciousness. I fail to see how that is in any way practical. The reason that panic pendants have gained adoption is that they’re simple: When a crisis happens, press the button. The elderly demographic needs innovation that reduces the complex into a minimalist interface that distills, rather than magnifies, information and choices. Today, most laptops come with dozens of preloaded games and gizmos littering the desktop. What would happen if they arrived instead with a start-up screen that looked just like the AOL sign-in page from 1999 but had state-of-the-art technology underneath it? Wouldn’t that get people on Skype, Twitter and Flickr faster?

[Manson is the president of the independent living technology company BeClose]

Broadband Speed: FCC Data Is Improving the Market

As part of our Consumer Empowerment Agenda, the Federal Communications Commission has been taking action to ensure that consumers are getting the information they need to make informed decisions. Our efforts to combat bill shock are one recent example, where we worked out a landmark agreement with the wireless industry to alert consumers before they are charged overage fees. The residential broadband market is another area where consumers may be faced with decisions they don’t have adequate information to make. Signing up for broadband—high-speed Internet—service can been a real challenge for consumers. To be an informed shopper for any service, you have to know what will best meet your needs, and you have to know that service providers will deliver what they advertise.

In our Measuring broadband America report, we presented findings in a number of ways, by technology, provider, and time of day. Many providers performed quite well, some even exceeding advertised speeds. But we also found some instances where broadband service fell significantly short of what was advertised, particularly at the times of day for peak broadband usage. As we had hoped, our results quickly began informing the marketplace. Our findings were reported not only on the news and on the websites of consumer groups, but also in television commercials, radio ads, and press releases from Internet service providers themselves. Those who had done well in our tests spread the news, and attempted to use their strong performance results to win customers in the marketplace. In the months since we released our initial report, we have continued to gather direct measurements of broadband performance. We are pleased to note that the performance of one company—Cablevision—markedly improved from earlier this year. As we noted in our report, during March 2011, subscribers to Cablevision’s 15 Mbps service were receiving average download speeds during peak hours of only about 50% of the advertised speed. By comparison, average users across all companies other than Cablevision were receiving download speeds during peak hours of 89% of the advertised speeds. During October 2011, the most recent month for which data is available, subscribers to Cablevision’s 15 Mbps service were receiving average download speeds during peaks hours at over 90% of the advertised speed.

Cuts to first-class mail to slow delivery in 2012

The cash-strapped U.S. Postal Service said it is seeking to move quickly to close 252 mail processing centers and slow first-class delivery next spring, citing steadily declining mail volume.

The cuts are part of $3 billion in reductions aimed at helping the agency avert bankruptcy next year. It would virtually eliminate the chance for stamped letters to arrive the next day, a change in first-class delivery standards that have been in place since 1971. The plant closures are expected to result in the elimination of roughly 28,000 jobs nationwide. The cuts, now being finalized, would close 252 out of 461 mail processing centers across the country starting next April. Because the consolidations typically would lengthen the distance mail travels from post office to processing center, the agency also would lower delivery standards. Currently, first-class mail is supposed to be delivered to homes and businesses within the continental U.S. in one day to three days. That will lengthen to two days to three days, meaning mailers no longer could expect next-day delivery in surrounding communities. Periodicals could take between two days and nine days. In the vast majority of cases, everyday users of first-class mail will see delays of one or two days, including those who pay bills by check, send birthday cards, write letters, or receive prescription drugs or Netflix DVDs by mail.

ITU: Terrestrial Digital TV Should be Accessible to Everyone, Everywhere

The International Telecommunications Union is encouraging its member countries -- which includes the U.S. -- to capitalize on the transition to terrestrial digital television to make sure TV is more accessible "to everyone, everywhere."

"For terrestrial broadcasting services, spectrum availability is sometimes an issue," the report acknowledged. "As the global manager of the radio frequency spectrum, ITU is actively encouraging its 193 Member States to ensure that sufficient spectrum is allocated to support services promoting accessibility for persons with disabilities," ITU said in releasing a new report, "Making TV Accessible." The report talks about the importance of terrestrial broadcasting to immigrant populations and the elderly, and for emergency communications.

Gallery: how the surveillance industry markets spyware to governments

A collection of documents recently published by Wikileaks casts a light on surveillance vendors who sell intrusive monitoring technology to governments and law enforcement agencies. This growing industry—which serves countries around the world—offers the ability to monitor entire populations and circumvent the privacy and security safeguards built into conventional consumer technology.