January 2012

Sen. Grassley Says LightSquared E-mails Smack of Improper Contact

Sen. Charles Grassley (R-Iowa), who has been seeking information from the Federal Communications Commission and others about LightSquared's waiver to launch a 4g wholesale wireless network, has written to LightSquared principal Philip Falcone to ask him to explain what the senator calls a questionable contact with the Senator's office over the issue.

In the letter, Grassley said that contact, comprising e-mails from both Falcone and a person claiming to represent LightSquared, "that intimated benefits for Grassley if he softened his inquiry of government approval of the project." Sen Grassley said Falcone's e-mail -- he supplied a redacted copy to the press -- suggested that the network could be a "win" for Grassley, while the second example -- an e-mail string with someone who Sen Grassley says also arranged a Fox News Channel booking for Falcone, "hinted" that Iowa could get a call center. According to the e-mail's, after Grassley's office signaled that they thought the suggestion was inappropriate, the representative said he was only pointing out the local connection of the issue for the Senator.

The High Cost of Low Bandwidth

When we attempt to understand the implications of the Internet Age, the first thing we need to do is recognize that office buildings, retail stores, air travel, lecture halls, and paper are just clunky, expensive, and low-bandwidth interconnections.

Allow me to explain. Many things that seem as solid as the Rock of Gibraltar are, in fact, information proxies in disguise. We can view these information proxies as two separate pieces: an information-sensitive piece, and a second piece with a valuable function that cannot be displaced by better virtual environments. The Internet peels away the information-carrying portions of these physical things and institutions. Frequently it leaves behind skeletons of little value. In the process, the Internet restructures and renders much of our physical infrastructure obsolete.

Could the Internet Ever Be Destroyed?

The raging battle over SOPA and PIPA, the proposed anti-piracy laws, is looking more and more likely to end in favor of Internet freedom — but it won't be the last battle of its kind.

Although, ethereal as it is, the Internet seems destined to survive in some form or another, experts warn that there are many threats to its status quo existence, and there is much about it that could be ruined or lost. A vast behemoth that can route around outages and self-heal, the Internet has grown physically invulnerable to destruction by bombs, fires or natural disasters — within countries, at least. However, while it's essentially impossible to cripple connectivity internally in a country, it is conceivable that one country could block another's access to its share of the Internet cloud.

Sun-Times stops making election endorsements

The Chicago Sun-Times will stop endorsing political candidates, saying “we have come to doubt the value” of newspapers doing it.

Publisher John Barron and Editorial Page Editor Tom McNamee wrote in an editorial : “Research on the matter suggests that editorial endorsements don't change many votes, especially in higher-profile races. Another school of thought, however — often expressed by readers — is that candidate endorsements, more so than all other views on an editorial page, promote the perception of a hidden bias by a newspaper, from Page One to the sports pages.” Also, Sun-Times senior management will be prohibited from contributing to political campaigns, a common rule for journalists.

Door opens for Issa-Wyden online piracy bill

The collapse in support for two anti-piracy bills last week leaves the door ajar for movement on alternative legislation offered by Sen. Ron Wyden (D-OR) and House Oversight Committee Chairman Darrell Issa (R-CA). The shelving of the Stop Online Piracy Act and the Protect Intellectual Property Act after massive online protests might have changed permanently the landscape of lobbying on tech issues. Issa and Wyden’s OPEN Act, which seeks to stop the transfer of money to foreign websites with a primary purpose of piracy or counterfeiting, is likely to get the full scrutiny of policymakers and the tech world in the coming weeks. Although whether it can move forward remains in serious doubt.

EU Privacy Rules to Include Leak Disclosure Within 24 Hours

A European Union proposal to simplify and toughen the region’s data-protection rules will require companies to disclose data breaches within 24 hours of their occurrences, Justice Commissioner Viviane Reding said.

The EU will this week outline an overhaul of its 17-year- old data-protection policies addressing online advertising and social-networking sites. The bill, which includes stricter sanctions and will equip national data-protection authorities with powers to levy administrative sanctions and fines, will “become a trademark people recognize and trust worldwide,” Reding said. The legislations will require companies to obtain “specific and explicit” consent from Internet users to store information, and delete data unless there is a “legitimate and legally justified interest” to keep them on their servers, Reding said.

Customers Experience Better At Tech-Focused Brands Vs. Traditional Media

Among 160 brands, Amazon was the only technology company to rank as “excellent” in Forrester’s latest customer experience index.

The achievement is all the more impressive considering that, as Forrester found, U.S. customers are becoming harder to please. Indeed, the percentage of brands in the excellent category dropped from 6% last year to just 3% this year -- continuing a steady downward trend from 2008 to 2012. Difficult as it may be, however, “improving customer experience can have an enormous positive impact on a firm’s bottom line,” according to Forrester analyst Megan Burns. To calculate its customer experience scores, Forrester asked some 7,600 U.S. consumers about their interactions with a variety of brands, and then subtracted the percentage of customers who reported bad experiences from the percentage who reported good experiences. Brands typically rate “OK” (65 to 74) to “very poor” (less than 55). This year, 64% of brands got a rating of “OK,” “poor” (55 to 64), or “very poor” from their customers, while 37% rated “good” (75 to 84) or “excellent” 85 and higher). Technology-focused brands with “good” consumers ratings included eBay, Apple and iTunes, Microsoft Xbox, Nintendo, Vizio, and Samsung. “Poor” performers included AOL, Blackberry, T-Mobile, Time Warner Cable, Cablevision, Verizon, and Cox Communications.

Study: Consumers View Social Marketing As Invasive

Marketers often tout social media as a channel that allows them to reach consumers with messages seamlessly tailored to their interests and social interactions. But nearly two-thirds (64%) of people say they “hate” when a company targets them through their social networking profile, and 58% agree that social media marketing is invasive, according to a new study. At the same time, findings from Insight Strategy Group showed a majority of those surveyed (55%) believe social networking sites are the best way to give a company feedback and that posting about a product or service on a social site can have a strong impact on a brand. In short, people like being able to provide feedback to marketers via social media -- but they don’t necessarily want to be followed by them.

K Street's boom goes bust

K Street boom days have come and gone. A bad economy and rigid stalemates on Capitol Hill took its toll on big firms for the second year in a row, with seven out of the 10 biggest lobbying groups reporting flat or negative revenues in 2011, a significant contrast with the double-digit growth many of the same firms experienced in the mid-2000s, according to recently filed federal lobbying reports.

And the stagnant revenues aren’t expected to pick up in the coming year with the economy still slow and an even bigger change afoot in the industry. Fights are no longer just about which side has the most — or best — lobbyists. The new world of Washington influence is more diverse: Traditional access lobbying is waged alongside campaigns that use media, grass-roots activism and the Internet — activity often not reported in federal lobbying filings.

Lobbying outlays bounce back in 4th quarter

Lobbying spending by the nation’s most prominent political influencers largely rebounded during last year’s fourth quarter, in part reflecting aggressive special interest campaigns concerning health, trade, employment, energy, telecom and technology issues, a POLITICO analysis of new federal disclosures indicates.

Companies and organizations such as Google, Verizon, BP, Royal Dutch Shell, Southern Co., Business Roundtable, National Association of Realtors, Comcast, Time Warner Cable and CTIA-The Wireless Association all posted larger lobbying numbers than they did during both the preceding quarter and the same period one year before. Upstart influence operations run by companies such as Facebook, meanwhile, also reported markedly increased federal lobbying investments. In all, 17 of the nation’s top 50 biggest-spending lobbying entities, as calculated by the Center for Responsive Politics based on third-quarter federal lobbying spending, exceeded their fourth-quarter 2010 and third-quarter 2011 output. Another 24 entities saw their spending in last year’s fourth quarter jump compared with one of the two periods. And more than three-fifths of these top 50 entities spent more for all of 2011 than they did in 2010, according to POLITICO’s analysis.