December 2011

GOVERNMENT & COMMUNICATIONS

JOURNALISTS ARRESTED
[SOURCE: SaveTheNews.org, AUTHOR: Josh Stearns]
The number of journalists arrested at Occupy Wall Street events around the country just keeps climbing. After this week’s police raids on Occupy LA and Occupy Philly, the total number of journalists arrested is now up to 30. The arrests have spread across 10 cities from Oakland to Boston, Los Angeles to Atlanta. While the arrests are perhaps the worst examples of press suppression, other reports of police roughing up journalists or blocking them from reporting continue to roll in. Even in New York City, where the NYPD has ordered its officers not to interfere with press, journalists are still being harassed. A chorus of leading news organizations, press associations and civil liberties groups has spoken out against the press suppression and arrests that have plagued Occupy protests around the country. Today tens of thousands of people join that call.
benton.org/node/106372 | SaveTheNews.org
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BART CELLPHONE POLICY
[SOURCE: Associated Press, AUTHOR: ]
The Bay Area Rapid Transit is authorizing police to turn off wireless communications in train stations, but only for extraordinary threats -- cases in which train passengers, employees or property are threatened or a substantial disruption to train service is possible.
Federal Communications Commission Chairman Julius Genachowski said, “Today BART took an important step in responding to legitimate concerns raised by its August
11, 2011 interruption of wireless service. As the policy BART adopted recognizes, communications networks that are open and available are critical to our democracy and economy. The FCC is dedicated to preserving the availability and openness of communications networks. It is also committed to ensuring that communications technologies are harnessed to protect the public, and that first responders and other public safety officers have the tools they need for their important work. For interruption of communications service to be permissible or advisable, it must clear a high substantive and procedural bar. The legal and policy issues raised by the type of wireless service interruption at issue here are significant and complex. I have asked Commission staff to review these critical issues and consider the constraints that the Communications Act, First Amendment, and other laws and policies place upon potential service interruptions. We will soon announce an open, public process to provide guidance on these issues.”
benton.org/node/106340 | Associated Press | FCC Chairman Genachowski
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AT&T/T-MOBILE

AT&T REACTS TO FCC REPORT
[SOURCE: AT&T, AUTHOR: Jim Cicconi]
We expected that the AT&T-T-Mobile transaction would receive careful, considered, and fair analysis. Unfortunately, the preliminary Federal Communications Commission Staff Analysis offers none of that. The document is so obviously one-sided that any fair-minded person reading it is left with the clear impression that it is an advocacy piece, and not a considered analysis. In our view, the report raises questions as to whether its authors were predisposed. The report cherry-picks facts to support its views, and ignores facts that don’t. Where facts were lacking, the report speculates, with no basis, and then treats its own speculations as if they were fact. This is clearly not the fair and objective analysis to which any party is entitled, and which we have every right to expect. All any company can properly ask when they present a matter to the government is a fair hearing and objective treatment based on factual findings. The FCC’s report makes clear that neither occurred on our merger, at least within the pages of this report. This has not been our past experience with the agency, which lets us hope for and expect better in the future.
We would encourage all observers to read the report itself. We believe that the utter absence of balance is clear, and demonstrates that the document lacks all credibility. The decision to issue such a report that has no legal status, without a vote of the Commission, and in a proceeding that has been withdrawn, was also without precedent, and underscores that this was intended more for advocacy and to impact public perceptions. And neither is a proper basis for action by a regulatory agency. If our economy is to recover and once again create jobs, major private-sector investment will be required. Over the past several years, no company has invested more in the United States than AT&T. In our merger with T-Mobile, we made commitments to invest additional billions—investments made possible because of the merger. We also face spectrum constraints of a nature and magnitude faced by no other carrier as we strive to provide services everyone concedes are vital. In this circumstance, we understood the issues such a combination might raise, and we made clear, publicly and privately, our readiness to address those concerns. We are still ready to do so.
The FCC responded to AT&T's criticism by saying, "The AT&T/T-Mobile merger would result in the single greatest increase in wireless industry consolidation ever proposed. The FCC’s expert staff dispassionately analyzed all of the facts, including the arguments AT&T rehashes today." An agency spokesman said the analysis mirrored findings by the Justice Department and several state attorneys general that "the transaction would decrease competition, innovation and investment, and harm consumers. In addition, AT&T’s own filings, many of which they have kept confidential, show that the deal would lead to massive job losses."
Sprint's top government affairs exec, Vonya McCann, said, "Let’s not forget that it was AT&T who tried to game the process by requesting to withdraw its merger application in the predawn hours of Thanksgiving. AT&T can’t have it both ways: either it wanted to have an application that would be judged on the merits or it didn’t. We agree with AT&T on one point however: the public should read the Analysis and Findings on AT&T’s proposed takeover."
benton.org/node/106371 | AT&T | WashPost | Associated Press | Broadcasting & Cable | The Hill | The Verge | LATimes | CNNMoney | ars technica
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GROUPS DEFEND FCC ACTION
[SOURCE: Benton Foundation, AUTHOR: Kevin Taglang]
Although AT&T was not happy with the Federal Communications Commission’s decision to release a staff evaluation of the public interest issues involved with the company’s acquisition of T-Mobile, many groups praised the move. [more at the URL below]
benton.org/node/106370 | Benton Foundation | Free Press | Media Access Project | The Hill
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5 BIGGEST LIES
[SOURCE: CNNMoney, AUTHOR: ]
1) AT&T and T-Mobile said prices would fall. The FCC said it in its staff report that its analysis suggests prices would instead rise if the merger were completed, since AT&T would eat the cheapest national carrier.
2) AT&T says that the merger would create "many thousands of indirect jobs," because the deal would allow for an expansion of the combined company's network infrastructure. The FCC said that even if AT&T made good on all its proposals, the merger would still result in a net loss of jobs -- both direct and indirect.
3) AT&T’s 4G footprint will only grow if it acquires T-Mobile. The FCC noted that the basis for AT&T's public characterization of its decision to stop at an 80% deployment is a Jan. 3, 2011, internal e-mail from John Stankey, AT&T's business operations chief. In that e-mail Stankey described a meeting with CEO Randall Stephenson in which the company agreed to its 2013 roll-out plan but postponed a decision on its future roll-out for a later date. "A decision not to say 'yes' at a particular moment is not the same as saying 'no' forever," the FCC said in its report. "We cannot agree that Mr. Stankey's e-mail suggests further consideration of LTE deployment had been ruled out, as opposed to left undecided. The record does not support AT&T's claim that ... future consideration of an expanded LTE deployment was a 'slim possibility.'"
4) AT&T said that its merger would increase competition, since regional carriers like MetroPCS and Leap Wireless would add subscriber. The FCC said that its analysis of data provided by the wireless carriers suggests that AT&T and T-Mobile are, in fact, competitors. Many AT&T customers switch to T-Mobile and vice versa, viewing one another as a clear second choice.
5) AT&T also stretched the truth about many smaller points. One of note: The company said its merger with T-Mobile would allow the combined company to make its network more efficient and expand capacity at no additional cost. Another notable claim: AT&T said its data shows that 40% of customers that cancel service due to higher prices will not purchase another cell phone. AT&T said that means the combined company is unlikely to raise prices for fear of losing customers permanently. The FCC had trouble believing either claim, arguing that AT&T is purposefully inflating statistics to make the proposed merger appear better than it actually would be. For the network efficiency argument, the regulator said that AT&T neglected to include the costs of integrating the two networks and phones in its cost assessment. That omission made AT&T's claims of the merger's cost-saving benefits appear far greater than they actually would be. As for the claim that droves of customers would drop their service and never buy a cell phone again if AT&T raised prices, the FCC called it both "implausible" and "unsupported." AT&T derived that number from its own studies of customers that leave its network, but the FCC said the company's choice in parameters for its calculation were unreasonable.
benton.org/node/106369 | CNNMoney
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T-MOBILE FEARS IN BERLIN
[SOURCE: Financial Times, AUTHOR: Gerrit Wiesmann, Helen Thomas]
The German government, Deutsche Telekom’s largest shareholder, is increasingly worried that the company’s sale of its US mobile phone unit, T-Mobile USA, to rival AT&T will founder on US antitrust concerns. In stark contrast to Deutsche Telekom’s comments about the proposed $39 billion deal, government officials said that Berlin was all but resigned to the deal failing – or to Deutsche Telekom trying to reconfigure the transaction. Deutsche Telekom, of which Berlin owns 32 per cent, had not been given an early and full picture of the regulatory risks of selling the US’s number four mobile operator to the number two. The doubts of Angela Merkel’s government fly in the face of Deutsche Telekom’s statement last week that it and AT&T “continue to pursue the sale of T-Mobile USA” despite opposition from federal regulators and many states. However, they mirror grave doubts in the US, where both the Department of Justice and the Federal Communications Commission, the industry’s primary regulator, oppose the deal. A failure could prove a bigger drag on Deutsche Telekom, which could be left with a scarred US operation and the prospect of a fire sale. But it has consistently denied speculation it could try to turn the sale into some kind of joint-venture.
benton.org/node/106373 | Financial Times
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WHAT WENT WRONG FOR AT&T
[SOURCE: Public Knowledge, AUTHOR: Art Brodsky]
[Commentary] AT&T hasn’t yet formally surrendered in its campaign to pay $39 billion for T-Mobile, and may not for a while. Its top officials are still making provocative, pugnacious pronouncements, whinging about its unfair treatment at the hands of regulators, while repeating arguments that have all but been discredited and dispensing other irrelevancies. It’s obvious to most observers that AT&T’s attempt to take over T-Mobile is all but dead. The post-mortems are starting and the question being asked is: what went wrong for AT&T? There is a two-part answer: 1. nothing 2. everything.
One problem for AT&T is that this deal was like trying to play football in a swimming pool. It doesn’t matter what plays you call, or what players you have. It’s just not going to work as well as being on a field. This takeover was just too blatantly anticompetitive and the supporting reasoning and facts were just too thin for the normal set of plays to work correctly, no matter how well executed. AT&T wanted to take out one of its three national wireless competitors, a company which had 33 million customers and employed about 40,000 people. It was that simple and inescapable fact at the heart of the matter that made it so difficult for policymakers to swallow. The other problem is that the Antitrust Division was starting to feel more bold, going to court to block more deals. And Federal Communications Commission Chairman Julius Genachowski was being pushed to put on his man pants both legs at a time.
benton.org/node/106374 | Public Knowledge
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PRIVACY

CARRIER IQ AND WIRETAP LAW
[SOURCE: Forbes, AUTHOR: Andy Greenberg]
A piece of keystroke-sniffing software called Carrier IQ has been embedded so deeply in millions of Nokia, Android, and RIM devices that it’s tough to spot and nearly impossible to remove, as 25-year old Connecticut systems administrator Trevor Eckhart revealed in a video. That’s not just creepy, says Paul Ohm, a former Justice Department prosecutor and law professor at the University of Colorado Law School. He thinks it’s also likely grounds for a class action lawsuit based on a federal wiretapping law. “If CarrierIQ has gotten the handset manufactures to install secret software that records keystrokes intended for text messaging and the Internet and are sending some of that information back somewhere, this is very likely a federal wiretap.” he says. “And that gives the people wiretapped the right to sue and provides for significant monetary damages.” Specifically, Ohm points to changes made to the Wiretap Act under the Electronic Communications Privacy Act of 1986 that forbid acquiring the contents of communications without the users’ consent. “Because this happens with text messages as they’re being sent, a quintessentially streaming form of communication, it seems like exactly the kind of thing the wiretap act is meant to prevent,” he says. ”When I was at the Justice Department, we definitely prosecuted people for installing software with these kinds of capabilities on personal computers.”
benton.org/node/106366 | Forbes
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QUESTIONS FOR CARRIER IQ
[SOURCE: Washington Post, AUTHOR: Hayley Tsukayama]
Sen. Al Franken (D-MN) has sent a letter to Carrier IQ asking the company to explain what its software records are and what they contain, how files are transmitted, and how the data is protected. “Consumers need to know that their safety and privacy are being protected by the companies they trust with their sensitive information,” said Sen Franken. “The revelation that the locations and other sensitive data of millions of Americans are being secretly recorded and possibly transmitted is deeply troubling. This news underscores the need for Congress to act swiftly to protect the location information and private, sensitive information of consumers. But right now, Carrier IQ has a lot of questions to answer.” He asked Carrier IQ to explain the seeming contradiction between its own statements saying they do not record keystrokes or provide tracking tools. He said that some of the company’s actions may violate federal privacy laws and is “potentially a very serious matter.” Sen Franken asked the company to respond to his questions by Dec. 14.
benton.org/node/106365 | Washington Post | The Hill
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WHO’S USING CARRIER IQ?
[SOURCE: Washington Post, AUTHOR: Hayley Tsukayama]
Wireless carriers and handset makers have slowly been clarifying how they use Carrier IQ, the software program that can record information from cellphones. Carrier IQ’s program is meant to collect user data to “assist operators and device manufacturers in delivering high-quality products and services to their customers.” But the average user can’t see or agree to this data collection, which is what’s caused such outrage. Verizon spokesman Jeffrey Nelson said on his Twitter account that the company does not use Carrier IQ on its phones. AT&T and Sprint have both released statements saying that they use Carrier IQ for network monitoring and maintenance purposes. “In-line with our privacy policy, we solely use CIQ software data to improve wireless network and service performance,” said AT&T spokesman Mark Siegel. Sprint, the carrier that was featured in security researcher Troy Eckhart’s videos showing the program’s activities, also said that it uses the program to monitor connection problems, but does not and cannot look at or record the contents of text messages.
http://www.washingtonpost.com/business/technology/whos-using-carrier-iq-...
AT&T, Sprint Defend Use of Carrier IQ User Tracking Software (Bloomberg)
benton.org/node/106364 | Washington Post | Bloomberg
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COULD CARRIER IQ DESTROY OPERATOR TRUST?
[SOURCE: Connected Planet, AUTHOR: Rich Karpinski]
The mobile industry certainly isn’t the first to be hit with complaints about privacy intrusions. But the impact on a company’s – or an entire sector’s – reputation can be hard to overcome. Truth is, blame for the Carrier IQ controversy falls equally across a number of players – including device makers, OS providers, operators and Carrier IQ itself. So it’s not fair to single out mobile operators here, especially when it appears that at least in some cases, individual operators can honestly distance themselves from the problem. That said, what will this do to consumer trust? Mobile users seem to be willing to suffer a loss of privacy if they can gain some value in return, from a just-in-time coupon to a personalized service or recommendation. And that’s just the start of this trust-for-value exchange, as the mobile ecosystem is just beginning to bloom and emerge. Indeed, you just can’t stop some users (bloggers, or heavy Facebookers, or Twitter spammers) from telling the world more about themselves than anyone would ever care to know. That said, consumers will make decisions about who to trust with their most trusted data, including identity, presence and location information. They have options. They could opt to keep it to themselves, and demand that it not be shared at all. Alternatively, they could share it directly with Web or mobile app or retail players. They could also choose to share it with middleman “brokers,” which might allow them to simplify how they share data and gain added value from that sharing. Who might play that broker role? Think Google, perhaps. Or banks or other trusted financial institutions. And certainly their mobile operator. That is if the “hysteria moment” that is the ongoing Carrier IQ controversy doesn’t convince them – fairly or unfairly – otherwise. The impact of the loss of that trust relationship for mobile operators would be huge, far-reaching and difficult if not impossible to counteract.
benton.org/node/106363 | Connected Planet
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CARRIER IQ SPEAKS
[SOURCE: Wall Street Journal, AUTHOR: John Paczkowski]
Carrier IQ, maker of a network diagnostic tool installed on millions of smartphones, has a simple rebuttal to accusations that its software logs keystrokes on the devices on which it is installed: It doesn’t. While CIQ might “listen” (Handy euphemism for “pattern match filtering”) to a smartphone’s keyboard, it’s listening for very specific information. Company executives insist it doesn’t log or understand keystrokes. It’s simply looking for numeric sequences that trigger a diagnostic cue within the software. If it hears that cue, it transmits diagnostics to the carrier. So, for example, if during a support call a technician asks a customer to enter a short code, CIQ will be listening for it; when it’s entered, CIQ will relay the appropriate diagnostic information to the carrier. Any keystrokes beyond that are ignored.
benton.org/node/106382 | Wall Street Journal
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SPECTRUM/WIRELESS

PANEL OKs SPECTRUM BILL
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
The House Communications Subcommittee approved in a 17 to 6 vote along party lines a Republican version of a spectrum incentive auction bill that would give the Federal Communications Commission the authority to pay broadcasters for voluntarily exiting the spectrum to be auctioned for broadband use, and set aside as much as $3 billion to compensate broadcasters left behind for moving or sharing channels. That $3 billion is three times as much as Democrats were proposing in their version and was the subject of some debate, as were a number of issues.
The House's Jumpstarting Opportunity with Broadband Spectrum (JOBS) Act of 2011 would require the FCC to do its best to preserve the coverage areas and interference protections of broadcasters who do not give up spectrum, compensates cable operators for any costs of picking up reconfigured broadcast signals, and prevents the FCC from forcing stations on UHF channels to move to VHF, which is not as robust for DTV. The bill allocates the D block of spectrum, rather than auctioning it, a Republican concession that Democrats on the committee praised.
The bill was amended to prevent the FCC from imposing network neutrality or wholesale conditions on the spectrum being reclaimed for auction, as well as to require the FCC to resolve broadcaster spectrum coordination issues with Canada and Mexico, to set aside money for e-911 call centers, and to prevent security risks from building out the emergency interoperable broadband communications network.
The bill will now go to full committee for markup, where Democrats said they hoped they could negotiate compromises, though they got no promises from the Republican majority. The auction is projected to return at least $15 billion to the US Treasury for deficit reduction after paying broadcasters and for the care and feeding of an interoperable emergency communications network. A separate Senate bill has passed the Commerce Committee and is awaiting a floor vote.
benton.org/node/106362 | Broadcasting&Cable | House Communications Subcommittee | The Hill
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SPRINT-CLEARWIRE
[SOURCE: GigaOm, AUTHOR: Stacey Higginbotham]
Sprint, which owns almost half of Clearwire, has stepped up with a plan to spend $1.6 billion over the next four years that will help Clearwire stay solvent, and Clearwire said it would make its $237 million debt payment. Sprint will pay Clearwire a total of $926 million, approximately two-thirds of which will be paid in 2012, for unlimited 4G WiMAX retail services during 2012 and 2013. That seems like a lot to pay for a dying 4G technology, but Sprint doesn’t have much choice, since it is harnessed to a CDMA network that can’t be upgraded easily to match the speeds currently offered by AT&T, Verizon and T-Mobile. The agreements also establish long-term usage-based pricing for WiMAX services in 2014, and Sprint will have access to Clearwire’s WiMAX network through at least 2015. Sprint said it plans to continue selling WiMAX devices with two-year contracts through at least 2012 and will support those devices through the life of the contract.
This is their best chance to pull together an LTE network after their failed bet on WiMAX and still counteract the growing power of AT&T and Verizon. Sprint also plans to launch network devices for its proposed LTE-Advanced network in 2013, which would put Sprint and Clearwire back on even footing with rivals that are currently offering LTE services.
benton.org/node/106355 | GigaOm | Associated Press | Bloomberg | NYTimes | Connected Planet
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PIRACY

SOPA ALTERNATIVE
[SOURCE: Washington Post, AUTHOR: Hayley Tsukayama]
Addressing the thorny issue of how the United States should address online infringement, lawmakers have introduced a bipartisan, bicameral proposal that would give the International Trade Commission the authority to launch investigations into digital imports, or downloads, of counterfeit goods. The ITC can currently issue orders excluding foreign counterfeit goods from entering the country, and the draft would extend that jurisdiction to the Web. Under the proposal, the ITC would have the authority to issue a cease-and-desist order against foreign Web sites that “primarily” and “willfully” engage in infringing U.S. copyrights or enabling imports of counterfeit goods. The commission would be able to tell U.S. companies to stop dealing with foreign companies that import counterfeit goods. Those orders would ultimately be enforceable by the US attorney general. The public would be notified of investigations, and final determinations could be appealed in a US court. Sen. Ron Wyden (D-OR), who helped draft the discussion document, said that the transparency and narrow scope of the ITC process make this approach preferable to those laid out in the Protect IP Act.
benton.org/node/106360 | Washington Post | The Hill
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SOPA OPPOSITION
[SOURCE: The Christian Science Monitor, AUTHOR: Jeff Ward-Bailey]
[Commentary] It’s been a tough few days for the Stop Online Piracy Act (SOPA) and the Protect IP Act (PIPA), the twin bills currently winding their way through the House and the Senate, respectively, aimed at increasing the government’s ability to hamstring copyright infringers and other counterfeiting ne’er-do-wells. Although the bills enjoy bipartisan support in Washington, opposition from groups equating their enforcement with online censorship has been strong – and the backlash is growing. Pretty much everyone agrees that stopping online piracy is a noble motive. And everyone agrees that copyright infringement on the Internet is a huge problem for content creators. But in spite of the bills’ popularity in Congress, all these groups have argued that infringement should be policed using less sweeping methods. SOPA and PIPA still have bipartisan support, but as they get closer to a vote – which could come before Congress breaks for the holidays – the bills’ opposition continues to gather steam.
benton.org/node/106381 | Christian Science Monitor, The
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MORE ON CONENT

DVD SPACE SHIFT
[SOURCE: Public Knowledge, AUTHOR: Press release]
Public Knowledge recommended to the U.S. Copyright Office that consumers be given the ability to "space shift" DVDs among various devices they may own, by cracking the encryption on the DVDs. PK made the recommendation as part of the Copyright Office's proceeding that takes place every three years to evaluate suggested exemptions to the Digital Millennium Copyright Act (DMCA). Unlike music CDs, video DVDs are usually encrypted. It is currently a violation of the DMCA to break the encryption in order to copy the video onto another device. PK asked the Register of Copyright to approve an exemption for breaking the encryption so that a DVD could be copied, for noncommercial use, onto a consumer's device, such as a tablet computer or other item that doesn't have a DVD drive.
benton.org/node/106352 | Public Knowledge | read the filing | a blog post explaining the filing
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WORKERS AND FACEBOOK
[SOURCE: Wall Street Journal, AUTHOR: Melanie Trottman]
Companies are facing a growing number of civil charges over disciplinary actions spurred by online comments from employees, who are using the National Labor Relations Act to try to win back their jobs or get settlements. The 1935 labor law, also known as the Wagner Act, is enforced by the federal National Labor Relations Board agency, or NLRB. The law allows employees the right to join together to improve their wages and working conditions, which includes discussing pay or other work-related issues with each other or with their employer. The law can also protect an individual who is speaking on behalf of one or more co-workers. Bottom line: there must be group activity, in intention or result, for it to be considered "protected concerted activity" that is allowable under the law. Mere griping isn't protected. The agency is also citing employers for maintaining online policies that are overly broad in ways that restrict workers' rights, such as the right to discuss online their wages, hours and working conditions with co-workers while not at work. The problem for employers and workers is that the guidelines being issued by the NLRB are slowly evolving case by case, making it tricky to ensure compliance with the law now being applied to what some labor experts call the virtual office water cooler. Here are the guidelines for what workers and employers can do on social media.
benton.org/node/106379 | Wall Street Journal | WSJ - Legal Cover for Rants
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INTERNET/BROADBAND

CYBERSECURITY BILL MOVES
[SOURCE: Bloomberg, AUTHOR: Chris Strohm]
The House Intelligence Committee approved a bill encouraging telecommunications companies including Verizon Communications and Comcast to share data on hacker attacks with the U.S. government. Under the measure, which cleared today in a 17 to 1 vote, companies would be protected from civil or criminal lawsuits for “acting in good faith” to inform government agencies that hackers had attacked their computer systems or compromised personal information. Cable, Internet and telecommunications providers have backed the legislation allowing them to share information with the government on a voluntary basis, while giving corporations access to classified intelligence on cybersecurity threats so they can protect their networks. The government would certify companies that are qualified to receive classified intelligence.
benton.org/node/106337 | Bloomberg
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PETITION FOR RECONSIDERATION
[SOURCE: Federal Communications Commission, AUTHOR: Marlene Dortch]
In this document, a Petition for Reconsideration has been filed in the FCC’s Rulemaking proceeding concerning a rule establishing protections for broadband service to preserve and reinforce Internet freedom and openness. Oppositions to the Petition must be filed by December 16, 2011. Replies to an opposition must be filed December 27, 2011.
benton.org/node/106336 | Federal Communications Commission
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MEDIA AND ELECTIONS

INEXPENSIVE REPUBLICAN PRIMARY SO FAR
[SOURCE: Bloomberg, AUTHOR: Kristin Jensen, Jonathan Salant]
Even as experts predict that the 2012 presidential race will be the most expensive in US history, a funny thing is happening on the way to the Republican nomination: It’s becoming one of the cheapest primaries in a more than a decade. The top nine Republican candidates spent $53 million through September, compared with $132 million spent at the same time four years ago. The sum is even lower than totals reported during the same period in the 2004 and 2000 primaries -- when most candidates still were abiding by campaign spending limits in order to receive public matching money. In the crowded Democratic primary in 2004, the candidates had spent $58 million through Sept. 30, 2003. Four years earlier, a primary field of 10 Republican candidates had spent $68 million in the first three quarters of 1999. One major difference is a profusion of televised debates -- 11 so far -- negating the need for costly commercials. The spending slump is having an effect on the campaign trail. Advertising in the first two states to hold contests, Iowa and New Hampshire, has plummeted 75 percent. And candidates who have barely registered in what’s sometimes called “the money primary” are vaulting into the lead.
benton.org/node/106338 | Bloomberg
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ADS GOING PRIMETIME
[SOURCE: TVNewsCheck, AUTHOR: John Consoli]
Political advertisers generally prefer to air spots in local newscasts because they draw a lot of likely voters, but, according to the experts, the majority of their spots — around 60% — in recent years actually end up in entertainment and sports programming. And that imbalance may get worse in 2012, when demand for political advertising is expected to hit new highs, thanks in large part to changes in the law that have spawned a new breed of political advertiser, the super political action committee or super PAC.
benton.org/node/106357 | TVNewsCheck
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OWNERSHIP

MEDIA OWNERSHIP RULES
[SOURCE: The Huffington Post, AUTHOR: Craig Aaron]
[Commentary] As a senator, Barack Obama fought to prevent greater media consolidation. In 2007, he opposed a vote by the Republican-led Federal Communications Commission to lift the ban on allowing one company to own a daily newspaper and a broadcast station in the same market. "We must ensure that we have an open media market that represents all of the voices in our diverse nation and allows them to be heard," the future president said before the FCC's vote. Why then is the Obama FCC reportedly pushing for nearly the same rule changes the Republicans failed to carry out in the Bush years? And why -- when those efforts to further weaken media ownership limits were rejected by the public, the courts and congressional leaders -- would the FCC expect a different response this time? Just because a Democrat is now in charge? To his credit, FCC Chairman Julius Genachowski has demonstrated a newfound willingness to stand up to the biggest corporations. He deserves accolades for showing why the AT&T/T-Mobile merger is not in the public interest. But that just makes his rumored moves on the traditional media front all the more baffling.
benton.org/node/106354 | Huffington Post, The
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GOOGLE-ADMELD OK
[SOURCE: Bloomberg, AUTHOR: Jeff Bliss, Sara Forden]
Google’s $400 million acquisition of AdMeld has been recommended for antitrust approval by Justice Department staff attorneys, two people familiar with the matter said.
The staff urged approval after a detailed analysis found that AdMeld’s competitors in online display advertising were strong enough to offer companies alternative ways to advertise, one of the people said. The recommendation still must be approved by senior department officials, said both of the people, who didn’t want to be identified because they weren’t authorized to speak about the matter publicly. The recommendation contrasts with the department’s reservations about Google’s purchase of ITA Software Inc. In that case, the department required oversight of Google’s actions before giving approval because government attorneys determined online travel agencies that used ITA’s software, which aggregates flight information, didn’t have many alternatives.
benton.org/node/106383 | Bloomberg
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USF REFORM

WHAT CARRIERS SHOULD KNOW ABOUT USF REFORM
[SOURCE: Connected Planet, AUTHOR: Joan Engebretson]
The Connect America Fund order adopted by the FCC in late October and released to the public just before Thanksgiving is poised to impose big changes on the voice-focused Universal Service program that has been in place for decades. This week and next, Connected Planet will recap what communications service providers need to know about the order, which aims to transform the high-cost Universal Service program into a broadband-focused program dubbed Connect America while also phasing out the inter-carrier compensation system, which also has helped fund communications networks nationwide. Some information about the Connect America Fund has been known since the reform order was adopted, including how the FCC plans to divvy up the money that currently goes toward the high-cost program, with funding shifting somewhat toward price cap areas, where the majority of homes that cannot get broadband today are located. The FCC also made clear at the time the order was adopted that it would not provide support to areas where an unsubsidized competitor offers broadband service. The final text of the 750-page order fills in some additional details, while leaving others for future resolution. More than 100 pages of the order are devoted to a notice of proposed rulemaking which, among other things, aims to resolve details about how Connect America funding for rate of return carriers should be awarded.
The FCC was considerably more forthcoming about what’s on tap for price cap territories, however. Plans there include:
Initially targeting support to areas where broadband service at speeds of at least 4 Mb/s downstream and 1 Mb/s upstream is not available.
Any supported broadband service must have sufficiently low latency to enable the use of real-time applications such as VoIP.
Funding recipients must allow usage at levels comparable to residential terrestrial fixed broadband service in urban areas. This is important because some price cap carriers had been hoping to use 4G wireless service to meet their Connect America Fund deployment requirement. It appears that would be an option under the program parameters—but the capacity requirement suggests the network operators might have to rethink their usage caps.
FCC to be responsible for the creation of a cost model to determine where support is needed along with the target level of support per line.
Incumbent price cap carriers can agree to bring service to unserved areas at the target level of support within five years or opt out on a state-by-state basis. The requirement to serve all or none of the high-cost areas in a state is aimed at preventing cherry picking, the FCC said.
If the incumbent opts out, funding will be awarded through a reverse auction open to competitive carriers. The idea of using a reverse auction in all areas where the price cap carrier has not deployed service to a certain percentage of households appears to have been abandoned.
In Year 5 of the program, the minimum target speed will be increased to 6/1.5 Mb/s for a “number of supported locations” to be determined as part of the process of developing the cost model.
benton.org/node/106351 | Connected Planet
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STORIES FROM ABROAD

WIRELESS DRIVES BROADBAND GROWTH
[SOURCE: Organization for Economic Co-operation and Development, AUTHOR: Press release]
Demand from new wireless broadband subscribers is driving growth in high-speed Internet in OECD countries but the latest data show a slowdown in fixed subscriptions in the first half of 2011. New wireless broadband subscriptions maintained double digit growth, rising by 14% from the last half of 2010. Year-on-year, wireless subscriptions rose by 26%. Fixed wired broadband subscriptions increased by only 2.25% between December 2010 and June 2011 (5.83% year-on-year), down from 6% in the last half of 2010. Today, there are 309 million fixed subscribers in the OECD. Globally, Switzerland and the Netherlands top the fixed broadband ranking (with over 38 lines per 100 inhabitants). The OECD average is 25.1. Korea (99.3), Sweden (93.6), Japan (80.0) and Finland (79.1) are the leading countries in wireless broadband penetration, some of them nearly doubling the OECD average of 47.9. The share of DSL and cable subscription remains stable (58.8% and 29.5%). Fiber-to-the-home subscriptions continued to grow and now represent 13% of broadband subscription (3,5% growth in six months).
benton.org/node/106348 | Organization for Economic Co-operation and Development
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OFCOM ON NETWORK NEURALITY
[SOURCE: Ofcom, AUTHOR: Press release]
Ofcom set out the steps it expects Internet Service Providers (ISPs) to take to ensure customers are aware of how internet traffic is being managed on their networks.
Traffic management is used by ISPs – fixed and mobile – to deal with congestion by slowing down or accelerating the flow of traffic over the internet. In general it is beneficial, and is used for example to protect safety-critical traffic such as calls to the emergency services. But it can cause concern, if for example it is used by ISPs to target competing services, in a manner which is not visible to consumers.
Although ISPs already provide some consumer information on their use of traffic management, Ofcom believes it currently does not go far enough and needs to be made clearer and easier to understand.
If improvements are not made, Ofcom may use its powers to introduce a minimum level of consumer information under the revised European framework. This framework was implemented into UK law in May 2011 and it contains a new policy objective to promote Network Neutrality.
Ofcom has set out a basic level of information which ISPs should provide to their customers at the point of sale including:
Average speed information that indicates the level of service consumers can expect to receive;
Information about the impact of any traffic management that is used on specific types of services, such as reduced download speeds during peak times for peer-to-peer software; and
Information on any specific services that are blocked, resulting in consumers being unable to run the services and applications of their choice.
benton.org/node/106367 | Ofcom | Ofcom’s Net Neutrality guide | Ofcom’s Net Neutrality statement
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SAMSUNG DELAY IN AUSTRALIA
[SOURCE: Reuters, AUTHOR: Amy Pyett]
An Australian court extended a ban on sales of Samsung Electronics' latest Galaxy tablet in the country by at least a week, further delaying the South Korean technology firm's attempt to sell the device to Christmas shoppers. The Australian ban was set to expire by 4 p.m (0500 GMT) on Friday but will now run until Dec 9 so the High Court can hear an Apple appeal against a court decision this week to overturn a temporary ban in place since late July. Justice John Dyson Heydon said the orders made by the Federal Court on Nov 30 "be stayed pending the termination of applicants application for special leave to appeal." Samsung is the world's top smartphone maker, but a distant second to Apple in tablets. The biggest legal battle for the global technology industry across 10 countries has undermined its efforts to close the gap.
benton.org/node/106377 | Reuters
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BROUPON PROBE IN UK
[SOURCE: Bloomberg, AUTHOR: Erik Larson]
Groupon, the largest Internet daily-deal site, is being investigated by Britain’s competition regulator over concerns including unfair promotions and exaggerated savings.
The U.K. Office of Fair Trading has been investigating Groupon’s British unit since July and expanded the probe after receiving a complaint from the country’s advertising watchdog. “Given Groupon’s track record, we have serious concerns about its ability to adhere to the advertising code,” the Advertising Standards Authority said in a statement. “It is in the public interest that we refer the matter to the OFT.”
benton.org/node/106376 | Bloomberg
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December 2011

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Kid apps explode on smartphones and tablets. But are they good for your children?

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