January 2012

"Bluster aside, it sounds like we have a federal agency more concerned about preserving its own power than offering serious improvements as we prepare to finalize [spectrum] legislation."
- House Commerce Committee Chairman Fred Upton (R-MI)

“In our experience, anytime a regulatory agency seeks unfettered discretion, that is the best reason Congress should not give it to them.”
- Jim Cicconi, AT&T

BENTON'S COMMUNICATIONS-RELATED HEADLINES for TUESDAY, JANUARY 17, 2012

PIRACY
   Combating Online Piracy while Protecting an Open and Innovative Internet - press release
   Bills to Stop Web Piracy Invite a Protracted Battle
   Controversial online piracy bill shelved until 'consensus' is found
   Controversial provision to block websites dropped from online piracy bill
   Senate Majority Leader Reid pushes online piracy bill despite White House concerns
   Senate Judiciary Republicans Call For Delay On Anti-Piracy Vote
   Tim O’Reilly: Why I’m fighting SOPA [links to web]
   Remain Diligent: SOPA And PIPA Must Be Squashed, Not Changed - op-ed [links to web]
   Consensus needed on Web piracy - editorial [links to web]
   Murdoch shows he doesn’t understand how content works - analysis [links to web]

SPECTRUM/WIRELESS
   House Commerce Committee Chairman Upton Reacts to FCC Chairman’s Comments on Spectrum Legislation - press release
   AT&T Statement on Incentive Spectrum Auction Legislation - press release
   What’s behind AT&T’s stab at the FCC on spectrum auctions - analysis
   T-Mobile defends FCC from AT&T attack [links to web]
   Federal body concludes LightSquared can't work with GPS
   What Congress Should Do Now To Advance Civil Rights In The Digital Age - editorial
   A Wireless Road Around Data Traffic Jams [links to web]
   Telcos to halt mobile network spending spree [links to web]
   Soon cell towers will start following you [links to web]
   AT&T’s Need for Spectrum Signals 77% Premium for Dish: Real M&A
   Comcast, Verizon Wireless Start Co-Marketing Run In Pacific Northwest
   Sales of $100 smartphones set to double [links to web]
   Our gadget lust has reached a crossroads [links to web]

ELECTIONS AND MEDIA
   Multiplied by PACs, Ads Overwhelm the Airwaves in South Carolina
   Hollywood Techniques at Play in Politics
   Sunlight Supports a Centralized FCC Database of Information about Political Ads
   Newt: 2012’s Candidate with TV Policy Chops - editorial [links to web]
   The 2012 tech primary

INTERNET/BROADBAND
   Global broadband subscribers inches up to 600 million
   How the Internet of things could make the world safer and greener [links to web]
   FCC Updates California on Broadband Reform
   Study: UK, US Wield Most 'Cyber Power' [links to web]
   Cable Had Fastest Broadband Downloads In 2011: Net Index [links to web]
   Convenient, but How Secure? - editorial [links to web]

LABOR
   SAG and AFTRA craft merger plan
   White House hopes new website will help create jobs [links to web]
   Insourcing American Jobs: The Importance of “Smart” Manufacturing, Broadband, and IT - press release [links to web]

TELECOM
   Lifeline and Link Up Programs for the 21st Century - editorial
   A Vital Lifeline - op-ed
   Telcos Ask FCC to Reconsider USF Reform Proposal
   Telcos to halt mobile network spending spree [links to web]
   Senator Dorgan at OPASTCO: “Unfathomable” to Shut Down Rural Broadband Projects
   AT&T jacks up 'measured' phone service rate because it can

TELEVISION/RADIO
   Ending the FCC’s arbitrary indecency policies - editorial
   Broadcast 'Indecency' on Trial - op-ed [links to web]
   RTDNA Needs Vital Member Input On FCC’s Standard Reporting Requirement - press release
   Netflix, Hulu and the golden age of content [links to web]
   Hulu Plus reaches 1.5 million paying subscribers [links to web]

GOVERNMENT AND COMMUNICATIONS
   Lawmakers press Homeland Security on Internet monitoring
   India Grapples With Web Censorship [links to web]
   New Law Lets Canadians Blog And Tweet Election Results [links to web]

SEARCH
   FTC Said to Expand Antitrust Probe to Add Google+ Service
   Has Google broken its promise to users? - analysis

OWNERSHIP
   Tribune: Bankruptcy exit 'possible' by October

WHAT NEWS WAS
   Holidays Over – Back to Work - analysis

STORIES FROM ABROAD
   India Grapples With Web Censorship [links to web]
   Russian Activists Turn To Social Media [links to web]
   New Law Lets Canadians Blog And Tweet Election Results [links to web]
   2 Israeli Web Sites Crippled as Cyberwar Escalates [links to web]
   Web Gang Operating in the Open [links to web]

MORE ONLINE
   As demand for e-books soars, libraries struggle to stock their virtual shelves [links to web]
   Google launches ad campaign to ease privacy concerns [links to web]
   Digital nostalgia: Do tweets age like fine wine? [links to web]

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PIRACY

WHITE HOUSE RESPONDS TO WE THE PEOPLE SOPA/PIPA PETITIONS
[SOURCE: The White House, AUTHOR: Victoria Espinel, Aneesh Chopra, Howard Schmidt]
Right now, Congress is debating a few pieces of legislation concerning the very real issue of online piracy, including the Stop Online Piracy Act (SOPA), the PROTECT IP Act and the Online Protection and Digital ENforcement Act (OPEN). We want to take this opportunity to tell you what the Administration will support—and what we will not support. Any effective legislation should reflect a wide range of stakeholders, including everyone from content creators to the engineers that build and maintain the infrastructure of the Internet. While we believe that online piracy by foreign websites is a serious problem that requires a serious legislative response, we will not support legislation that reduces freedom of expression, increases cybersecurity risk, or undermines the dynamic, innovative global Internet.
Any effort to combat online piracy must guard against the risk of online censorship of lawful activity and must not inhibit innovation by our dynamic businesses large and small.
We must avoid creating new cybersecurity risks or disrupting the underlying architecture of the Internet.
The Administration calls on all sides to work together to pass sound legislation this year that provides prosecutors and rights holders new legal tools to combat online piracy originating beyond U.S. borders while staying true to the principles outlined above in this response. We should never let criminals hide behind a hollow embrace of legitimate American values. This is not just a matter for legislation. We expect and encourage all private parties, including both content creators and Internet platform providers working together, to adopt voluntary measures and best practices to reduce online piracy.
benton.org/node/110479 | White House, The | New York Times | Politico | Associated Press | the Hill
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PROTRACTED BATTLE OVER PIRACY
[SOURCE: New York Times, AUTHOR: Jenna Wortham, Somini Sengupta]
When the Obama administration announced on Jan 14 its opposition to major elements of two Congressional bills intended to curtail copyright violations on the Internet, the technology industry, which has been loudly fighting the proposed legislation, could declare victory. But few people in Silicon Valley or Hollywood consider the battle over.
The Motion Picture Association of America, which represents Hollywood studios and is a principal proponent of the antipiracy legislation, suggested that it would continue to push the administration to approve a modified version of the bills, known as the Stop Online Piracy Act and the Protect Intellectual Property Act. “Look forward to @whitehouse playing a constructive role in moving forward on #sopa & #pipa,” the association posted on its Twitter feed. Some leaders of the movie industry were not as diplomatic. The chief executive of News Corporation, Rupert Murdoch, in a flurry of Twitter messages in the hours after the White House announcement, accused President Obama of capitulating to the technology industry. “So Obama has thrown in his lot with Silicon Valley paymasters who threaten all software creators with piracy, plain thievery,” he posted on his Twitter feed. The opposition has been fueled by some of the most innovative pieces of the Internet — Twitter, Facebook, Reddit.com and even the I Can Haz Cheezburger? sites. “Looks like the Internet is winning a battle against some really bad potential law,” wrote Craig Newmark, the founder of Craigslist, the online classified advertising site, in a blog post.
benton.org/node/110471 | New York Times
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SOPA STALLED IN HOUSE?
[SOURCE: The Hill, AUTHOR: Brendan Sasso]
House Oversight Chairman Darrell Issa (R-CA) said Jan 14 that Majority Leader Eric Cantor (R-VA) promised him the House will not vote on the controversial Stop Online Piracy Act (SOPA) unless there is consensus on the bill. "While I remain concerned about Senate action on the Protect IP Act, I am confident that flawed legislation will not be taken up by this House," Chairman Issa said. "Majority Leader Cantor has assured me that we will continue to work to address outstanding concerns and work to build consensus prior to any anti-piracy legislation coming before the House for a vote."
benton.org/node/110477 | Hill, The
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CHAIRMAN SMITH OFFERS SOPA CHANGES
[SOURCE: The Hill, AUTHOR: Brendan Sasso]
In a major concession to critics of the Stop Online Piracy Act (SOPA), House Judiciary Chairman Lamar Smith (R-TX) said Jan 13 he will drop a controversial provision that would have required Internet providers to block infringing websites. “After consultation with industry groups across the country, I feel we should remove Domain Name System blocking from the Stop Online Piracy Act so that the committee can further examine the issues surrounding this provision," Chairman Smith said. "We will continue to look for ways to ensure that foreign websites cannot sell and distribute illegal content to U.S. consumers." The provision that would have required Internet providers to block infringing websites was one of the most controversial aspects of the bill.
Sen. Ron Wyden (D-Ore.), one of the most outspoken opponents of the legislation, called Leahy's announcement "welcome news," but said he still plans to try to block the bill from coming to a vote. He said that even without the site-blocking provision, the bill would threaten "speech, innovation, and the future of the American economy."
benton.org/node/110475 | Hill, The | National Journal
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PIPA VOTE IN SENATE?
[SOURCE: The Hill, AUTHOR: Brendan Sasso]
Senate Majority Leader Harry Reid (D-NV) vowed to move forward with a controversial online piracy bill on Jan 15, despite the White House expressing concern with the measure. "We need to work on this and we're going to -- I will hope we can have a manager's amendment when we get back here in a week or 10 days and move forward on this," Sen Reid told David Gregory on NBC's Meet the Press. "It's important that we try to do this on a fair basis, and I'm going to do everything I can to get that done," Sen Reid said. He acknowledged that the bill has come under intense fire from consumer groups and Web companies including Google and Facebook, who say it would stifle innovation and censor free speech. "I think they're right, I think it could create some problems," Reid admitted, but he expressed confidence that an amended version of the bill could be a "winner for everyone, not just for the content people."
benton.org/node/110474 | Hill, The
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SOME ASK FOR DELAY IN SENATE
[SOURCE: National Journal, AUTHOR: Josh Smith]
Top Republican members of the Senate Judiciary Committee said on Jan 13 that Senate leaders are moving too quickly to approve a controversial piece of anti-piracy legislation. Judiciary Chairman Patrick Leahy's Protect IP Act aims to crack down on certain websites that feature pirated content or counterfeit products. But GOP members of Leahy's committee told Senate Majority Leader Harry Reid (D-NV) that many problems remain unresolved. Majority Leader Reid has called for a vote on cloture when the Senate returns on Jan. 24. "We strongly believe that the theft of American intellectual property is a significant problem that must be addressed to protect property rights," the senators said in a letter to Reid. "However, for both substantive and procedural reasons, the process at this point is moving too quickly and this step may be premature." Senate Judiciary Ranking Member Chuck Grassley (R-Iowa) and Sens Orrin Hatch (R-Utah), Jeff Sessions (R-AL), John Cornyn (R-TX), Mike Lee (R-UT), and Tom Coburn (R-OK) signed the letter.
benton.org/node/110472 | National Journal
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SPECTRUM/WIRELESS

HOUSE COMMERCE RESPONDS TO GENACHOWSKI’S REMARKS
[SOURCE: House of Representatives Commerce Committee, AUTHOR: Chairman Fred Upton (R-MI)]
Bluster aside, it sounds like we have a federal agency more concerned about preserving its own power than offering serious improvements as we prepare to finalize this legislation. We worked with the FCC's auction experts to give the agency the legitimate flexibility it needs to design the mechanics of the auction. It's time to stop the FCC from engaging in political mischief that will hurt competition and steal money from the taxpayer's coffers. Don't take our word for it – look at the 2008 auction. The FCC imposed conditions on the C and D blocks that ultimately prevented the D-block from selling and pushed smaller carriers out of the auction. Taxpayers lost somewhere in the neighborhood of $5 billion, and spectrum remains sidelined. And speaking of protecting taxpayers, it's time for the FCC and others to be honest about how taxpayers would be affected by their plans to give away valuable spectrum to favored constituencies. Our goal is to strike the right balance by keeping plenty of opportunity for unlicensed use without forcing taxpayers to forfeit any return on a resource that everyone agrees is worth billions.
benton.org/node/110467 | House of Representatives Commerce Committee
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AT&T SPECTRUM STATEMENT
[SOURCE: AT&T, AUTHOR: Jim Cicconi]
We applaud the [Federal Communications Commission Chairman Julius Genachowski’s] continuing support for incentive spectrum auction legislation, which is vital to consumers and to our Nation’s economy. We are troubled, though, that the chairman and some of his staff are now saying that the FCC, and not the United States Congress, should have full power to impose conditions, and to decide which companies are allowed to participate in spectrum auctions and which should not. In our experience, anytime a regulatory agency seeks unfettered discretion, that is the best reason Congress should not give it to them…. For the FCC to assert, in the name of ‘fostering competition’, that it should have final say on which companies can bid on spectrum is for them to engage in picking winners and losers. That is not the job of the FCC. When consumers are able to make decisions in a free and competitive market -- and wireless is clearly that -- the FCC should not be allowed to impose its own will if it doesn’t like the choices those consumers make. The FCC should be a neutral arbiter, ensuring fairness and impartially enforcing a system of rules and laws. It should not be empowered by Congress to advantage some companies and disadvantage others, or to impose its preferences on a free market. We commend the Congress for advancing spectrum legislation in a way that helps the economy, maximizes revenue for the Treasury, and ensures that consumers -- not regulators -- decide who wins and loses in the competitive wireless market. It would be a disservice to the Nation if the FCC is so adamant about preserving and enhancing its own power that it would risk killing this crucial legislation.
benton.org/node/110464 | AT&T | The Hill
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WHAT’S BEHIND AT&T MOVE?
[SOURCE: GigaOm, AUTHOR: Stacey Higginbotham]
AT&T wants the Federal Communications Commission to steer clear of setting policies for the spectrum auction process and leave it up to Congress. The position comes as somewhat of a surprise, since one would think the last thing a major telecommunications company would want is to leave its critical airwave future in the hands of Congress. But here’s what’s behind AT&T’s latest public policy power play.
There are spectrum auction bills in both the House and the Senate, but it’s the one in the House that may be the reason AT&T’s getting so uppity. House Republicans are trying to stop the FCC from being able to make the rules for the eventual auction of the digital TV airwaves that President Obama and the FCC want to take from broadcasters and repurpose for mobile broadband. If AT&T can get Congress to fight the FCC on this particular spectrum auction with this bill, it will have won by making sure new airwaves don’t come burdened by FCC provisions that AT&T doesn’t like. And since Congress seems dead set on making these airwaves no good for mobile broadband, AT&T hasn’t lost much.
benton.org/node/110461 | GigaOm
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REPORT SAYS LIGHTSQUARED CAN’T WORK WITH GPS
[SOURCE: IDG News Service, AUTHOR: Stephen Lawson]
A key federal agency involved in testing the proposed LightSquared LTE 4G network has concluded that there is no practical way to solve interference between that network and GPS, possibly dealing a crippling blow to the startup carrier's hopes for a terrestrial mobile network. In a memo released Jan 13, the National Space-Based Positioning, Navigation, and Timing Executive Committee (PNT ExComm) said the nine federal agencies that make up the body had concluded unanimously that none of LightSquared's proposals would overcome significant interference with GPS (Global Positioning System). Both the original and modified proposals by LightSquared would cause harmful interference to many GPS receivers, the PNT ExComm chairmen said in the memo. The agency also said a Federal Aviation Administration analysis had concluded the network would be incompatible with aircraft safety systems. "Based upon this testing and analysis, there appear to be no practical solutions or mitigations that would permit the LightSquared broadband service, as proposed, to operate in the next few months or years without significantly interfering with GPS. As a result, no additional testing is warranted at this time," the memo said.
benton.org/node/110445 | IDG News Service
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CIVIL RIGHTS IN THE DIGITAL AGE
[SOURCE: Minority Media and Telecommunications Council, AUTHOR: Editorial staff]
[Commentary] The Minority Media and Telecommunications Council calls upon Congress to channel the civil rights spirit of the 1964-1968 Congress and “act rapidly and comprehensively to adopt spectrum auctions. By doing so, Congress will deliver the nation a civil rights victory of profound magnitude, at a time when the nation badly needs one.” The solution is congressional approval of spectrum incentive auctions, which would enable broadcasters to tender their spectrum to the government in exchange for some of the cash generated when it is auctioned to wireless providers. MMTC and organizations as diverse as the National Urban League, the League of United Latin American Citizens, the Communications Workers of America, the U.S. Telecom Association and the National Association of Broadcasters have endorsed spectrum incentive auctions. Congress should establish clear, comprehensive and unambiguous ground rules for:
who should be permitted to bid – including how to protect minority entrepreneurship;
how broadcasters should be fairly compensated for their spectrum; and
how to preserve diversity of voices as some broadcasters elect to relinquish spectrum.
benton.org/node/110443 | Minority Media and Telecommunications Council
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AT&T/DISH?
[SOURCE: Bloomberg, AUTHOR: Scott Moritz]
AT&T is under so much pressure to add wireless spectrum after its failed $39 billion bid for T- Mobile USA that it may be compelled to pay the highest premium in more than a decade to secure Dish Network. AT&T may consider a bid for Dish after the second-largest U.S. satellite-television provider acquired airwaves from the bankruptcies of DBSD North America Inc. and TerreStar Networks Inc. that could give AT&T two to four more years of capacity, said Stifel Nicolaus & Co. With the industry facing network constraints and a scarcity of new spectrum that’s making Dish a target, President and Chief Executive Officer Joe Clayton says the company is open to future acquisitions. At $50 a share, cited as a reasonable price by Alpine Mutual Funds, AT&T would have to pay a 77 percent premium for Dish, the highest in an acquisition greater than $5 billion by a telecommunications company since 2000.
benton.org/node/110504 | Bloomberg
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COMCAST-VERIZON TEST CO-MARKETING
[SOURCE: Multichannel News, AUTHOR: Todd Spangle]
Comcast and Verizon Wireless this week will launch a marketing program in Seattle (WA) and Portland (OR) promoting their respective services to the other's customers, ahead of regulatory approval of the deal. Under the trial promotion, customers who sign up for two-year contracts for Comcast and Verizon Wireless services will be eligible to receive a prepaid Visa card of $100 to $300, the Philadelphia Inquirer reported. To qualify for the prepaid card, customers must purchase the Comcast and Verizon services within 14 days of each other, and must activate a smartphone or tablet device, according to Seattle-based tech blog GeekWire. The initial joint offer is scheduled to end in May. Under their co-marketing deal, Comcast will promote Verizon Wireless services through its call centers and the carrier will pitch the MSO's Xfinity triple-play in its retail stores. Eight Verizon Wireless stores in the Seattle area involved in the initial retail launch. Comcast and Verizon Wireless expect the marketing program to roll out to other markets this year and into 2013.
benton.org/node/110500 | Multichannel News
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ELECTIONS AND MEDIA

MORE SC ADS
[SOURCE: New York Times, AUTHOR: Jeremy Peters]
Anyone who happened to be near a working television in South Carolina over the weekend was exposed to one of the most concentrated and expensive barrages of political advertising that this state has ever experienced. With the traditional efforts of candidates now multiplied by the presence of the well-financed “super PACs” supporting them, political operatives outbid and outmaneuvered one another in a last-minute race to buy up what time remained on the airwaves between now and the state’s Republican presidential primary on Saturday. None would risk having their messages drowned out by those of their rivals. The arms race at television stations across South Carolina is the most vivid manifestation yet of the influx of outside money into American politics this election cycle. Because of a Supreme Court decision that paved the way for the creation of the super PACs — groups that can raise and spend unlimited amounts of money advocating for a candidate as long as they do not coordinate with the campaign — the messaging wars are reaching new levels of intensity. Five Republican presidential candidates are advertising on television here. In addition, seven super PACs have run commercials alongside them.
benton.org/node/110460 | New York Times
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HOLLYWOOD TECHNIQUES IN POLITICS
[SOURCE: New York Times, AUTHOR: David Carr]
[Commentary] Politics has looked to Hollywood before for inspiration — take, for example, the Capra-like film tribute to Ronald Reagan for the 1984 Republican convention or “The Man From Hope,” the triumph-of-the-human-spirit fable created for Bill Clinton’s 1992 campaign by the television producer Harry Thomason. Hollywood came early to the 2012 presidential race in the unlikely form of “When Mitt Romney Came to Town,” the 28-minute documentary-style attack film that opens with the word “capitalism” and comes to an end with chants of “Wall Street greed.” “When Mitt Romney Came to Town” borrows from a different script — the documentary exposé. The film uses real people talking directly to the camera, varying film stocks and camera angles and cutaways of lonely factories surrounded by weedy parking lots to not only question Mr. Romney’s ability to create jobs but indict him as someone who has been pretty good at destroying them. Think of Willie Horton recast as a venture capitalist and you get a pretty good idea of the flavor of “When Mitt Romney Came to Town.”
benton.org/node/110458 | New York Times
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SUNLIGHT ON POLITICAL ADS
[SOURCE: Sunlight Foundation, AUTHOR: Lisa Rosenberg]
The Sunlight Foundation submitted comments encouraging the Federal Communications Commission to quickly create a centralized, publicly accessible database of information about political ads buys. The current system, in which valuable information about political ads is located in the file cabinets of broadcasters across the country, prevents the information from being shared, analyzed or understood. To truly make the most use of the data, information from broadcasters’ political files should be available to the public on a centralized, searchable, sortable database on the FCC’s website.
It is currently too easy to mislead the public about the source of money behind a political ad. A searchable FCC database of ad buys would enable the public to learn who is behind any given political advertisement and allow for big-picture analysis about the money being spent to influence our elections. We applaud the FCC for opening this rulemaking and hope it adopts meaningful rules to create a more transparent system of political advertising.
benton.org/node/110456 | Sunlight Foundation
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TECH PRIMARY
[SOURCE: Politico, AUTHOR: Kim Hart]
As GOP presidential contenders stump for votes from Iowa to New Hampshire to South Carolina, Google, Facebook and Twitter are in a race of their own — for millions of dollars in political ads. The tech giants are offering candidates new ways to advertise — Mitt Romney has spots on YouTube and Rick Perry’s Facebook ads target Christian college kids in South Carolina — and hiring political consultants, sponsoring debates and poaching from each other’s ad sales teams to jockey for the top spot in political social media circles.
benton.org/node/110496 | Politico
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INTERNET/BROADBAND

600 MILLION BROADBAND SUBSCRIBERS
[SOURCE: GigaOm, AUTHOR: Om Malik]
Point Topic released new broadband subscription numbers; here are some highlights:
A total of 17.4 million broadband lines were added during Q3 2011.
China had 152.52 million subscribers at the end of Q3 2011 while the U.S. had 90.5 million.
At the end of Q3 there were a total of 54.4 million IPTV subscribers, up 6.06 percent over the previous quarter. France, China and USA are the top three IPTV regions. Russia is the fastest growing IPTV nation.
FTTx (including FTTH) technologies saw a sharp uptick during the quarter. FTTx alone added 19 million lines during the quarter. Broadband Forum says that now fiber technologies account for 16 percent of total broadband market share and will soon catch up to cable, which stands at 19.5 percent.
benton.org/node/110453 | GigaOm
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FCC BROADBAND PLANS
[SOURCE: Government Technology, AUTHOR: Brian Heaton]
Speaking at a roundtable discussion with the California Broadband Council, Federal Communications Commission Chief of Staff Zachary Katz said the FCC will focus on the build-out of high-speed networks in underserved areas and work to expand mobile broadband access throughout the US. He said the FCC’s Connect America Fund (CAF) — a $4.5 billion annual program that launched in November 2011 to revamp the commission’s outdated universal service and intercarrier compensations systems — will devote $300 million to areas where networks aren’t being developed. The FCC is currently developing a finance model to begin the effort, but Katz said that the FCC envisions, in the long term, a competitive bidding system for a five-year commitment to building out an area. “A big part of this is the idea of targeting support in areas where you truly need it, where there isn’t another subsidized competitor: whether a cable company or another provider that can offer services,” he said.
benton.org/node/110450 | Government Technology
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LABOR

SAG-AFTRA MERGER
[SOURCE: Los Angeles Times, AUTHOR: Richard Verrier]
Hollywood's two main actors unions, the Screen Actors Guild and the American Federation of Television and Radio Artists, Jan 16 took a historic step toward combining their two unions. The Group for One Union, which is made up of leaders of SAG and AFTRA, hammered out an agreement to merge the unions after nine days of intensive talks -- held out of the public view at the Renaissance Hollywood Hotel. Neither of the unions would publicly comment on the agreement, but people familiar with the matter said it contains a proposed constitution, governance structure, and dues-payment plan for what would be the largest labor group in Hollywood.
benton.org/node/110514 | Los Angeles Times
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TELECOM

LIFELINE AND LINKUP FOR THE 21ST CENTURY
[SOURCE: Benton Foundation, AUTHOR: Amina Fazlullah]
[Commentary] After years of consideration, the Federal Communications Commission is going to update its Lifeline and Link Up programs for the 21st century. Chairman Julius Genachowski, in a speech January 9, announced his plan to significantly reform the program to include broadband-focused elements and to streamline the legacy voice service program to ensure that it performs efficiently. We at the Benton Foundation are extremely pleased that the Chairman has followed through with a solid Lifeline and Link Up proposal after years of work from the Federal-State Joint Board on Universal Service, FCC staff, the FCC’s Consumer Advisory Committee, and public interest commentors.
http://benton.org/node/110410
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A VITAL LIFELINE
[SOURCE: Minority Media and Telecommunications Council, AUTHOR: Deborah Taylor Tate]
[Commentary] Probably only telecom groupies realize the monumental efforts of the FCC over the past year to reform the $7 billion dollar Universal Service Fund (USF). The effort culminated in a voluminous order focused on the High Cost Fund that was adopted on November 18, 2011. And, while there will certainly be legal challenges to the USF order, it is no less an important step for the agency. The Federal Communications Commission (FCC) commissioners and staff should be proud of taking a stand and finally curtailing what has been one of the least efficient and certainly overly costly subsidy programs funded by taxpayers. The USF program has been a poster child for corporate welfare, and it has needed reform for decades. On the other hand, the FCC now has the last piece of overall USF reform to finalize: the portion of the fund that supports qualified Low Income persons. And while I have been a vociferous supporter of reforming universal service for years, I hope that the Commission doesn’t throw the baby out with the bathwater. While many have criticized the Low Income Fund for “waste, fraud and abuse” – indeed, I agree all government programs should constantly improve their efficiencies and implement procedures to prevent fraud – the industry has stepped forward with numerous solutions which already have solved most of these criticisms, and more reforms can be implemented. But the bottom line is that low income Americans are still facing extremely high levels of unemployment and the longest recession since the Depression. The low income fund is just that: a fund only for low income persons; only for the poorest of the poor. My hope for the New Year is that the FCC recognizes the important – indeed, the critical – role that the Lifeline program plays in helping to ensure communications access for the truly poor. Rather than capping the low income program, we should be ensuring that those in need have access to this vital lifeline.
benton.org/node/110442 | Minority Media and Telecommunications Council
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USF RECON PETITION
[SOURCE: Multichannel News, AUTHOR: John Eggerton]
On January 12, the Federal Communications Commission released a list of parties that had petitioned the FCC for reconsideration of its Universal Service Fund reform order. Verizon, Sprint and USTelecom are among them. The USF reform order already faces court challenges from AT&T (a USTelecom member) and the National Telecommunications Cooperative Association. AT&T was particularly unhappy with the VoIP true-up, suggesting that terminating circuit-switched traffic was a lot more involved than interconnecting VoIP. Those opposed to the petitions have 15 days from publication of the notice in the Federal Register -- that usually takes a week or so -- to respond, with replies to those oppositions due 10 days after that 15-day window has closed. Among those also petitioning the FCC for reconsideration were MetroPCS, OPASTCO (Organization for the Promotion and Advancement of Small Telecommunications Companies) and the Western Telecom Alliance.
benton.org/node/110427 | Multichannel News
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DORGAN ON OPASTCO
[SOURCE: JSI Capital Advisors, AUTHOR: Cassandra Heyne]
Rural telecommunications providers need to fight to make sure the Federal Communications Commission “gets it right” – meaning Universal Service Fund reform, of course. This was the central point of former-Sen Byron Dorgan’s (D-ND) speech at the opening session of the OPASTCO Winter Convention in Florida on January 16, 2012. Dorgan, who hails from a 300-person town in rural North Dakota, helped write the rural USF provisions of the Telecommunications Act of 1996. He emphasized the importance of ensuring comparable services at affordable prices—including advanced services—for all Americans. With the Internet providing access to literally anything in the world “just one click away,” Dorgan ominously said, “It is over for you if you are on the wrong side of the digital divide.” Dorgan expressed concern that the FCC is moving away from the founding principles of USF in the new Connect America Fund (CAF). He stated that CAF is a good idea, but the plan for rural America is “not there,” which is “a serious problem.” In these tough economic times it is more important than ever to maintain jobs and infrastructure in rural America, and it is “unfathomable” to shut down projects that would create new jobs and services—Dorgan added, “it doesn’t make any sense.” Dorgan recommended that the FCC make a public commitment to the underlying concepts of universal service, clarify the confusing aspects of the reforms, and modify provisions that are incorrect. Rural telecom providers should continue to “reach high despite the odds to connect the country.” Dorgan closed on an inspired note: “You are not going to leave rural America behind. America doesn’t get ahead by leaving anyone behind.”
benton.org/node/110494 | JSI Capital Advisors
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AT&T PRICE INCREASES IN CALIFORNIA
[SOURCE: Los Angeles Times, AUTHOR: David Lazarus]
[Commentary] With bills for pretty much everything steadily rising, some people try to keep a lid on monthly costs by opting for "measured" phone service. What that means is they're charged a fixed rate for a limited number of local calls, plus a per-minute rate for any additional calls. If you don't use your phone a lot, it can be a really good deal. Too good, apparently. Or so the bean counters at AT&T seem to have concluded. Beginning March 1, the company's base rate for measured phone service will jump $3 a month to $15.37 from $12.37 — a nearly 25% increase. The charge for additional local calls will be 3 cents per minute. Separately, AT&T's flat-rate charge for unlimited local calls will increase $1.05, to $21 a month. These are simple plans for people with simple calling needs. Their cost to AT&T is negligible. "It's extortion, pure and simple," said Regina Costa, telecom research director for the Utility Reform Network, or TURN, a San Francisco advocacy group. "There's no proof that these price increases are justified." And thanks to our hands-off state regulators, no such proof is required. As of last year, the California Public Utilities Commission has allowed phone companies to jack up basic rates as much as they please.
benton.org/node/110509 | Los Angeles Times
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TELEVISION/RADIO

WASHPOST VS FCC INDECENCY ENFORCEMENT
[SOURCE: Washington Post, AUTHOR: Editorial staff]
[Commentary] Broadcasters have long been bound by government decency standards in exchange for the use of public airwaves. But for years, the Federal Communications Commission refrained from punishing the airing of the errant swear word, reserving its ire — and regulatory muscle — for instances where broadcasters flagrantly disregarded the standards and aired profanity or nudity between 6 a.m. and 10 p.m., when children were most likely to be watching. The Supreme Court heard oral arguments Tuesday in a case in which broadcasters and their allies rightly challenged the FCC’s indisputably confusing and arbitrary policies. (The Washington Post Co. owns broadcast stations that could be affected by any decision in this case.)
Viewers these days flip easily between uncensored and often provocative content on premium subscription channels and network programming bound by the government standards. The proliferation of these cable and satellite channels has irrevocably altered the TV landscape and, critics say, erased the legal and moral rationale for holding broadcast channels to a different standard. Some in the broadcast industry argue that the indecency standards amount to unconstitutional and discriminatory government censorship. We believe that this argument goes too far. There is value in maintaining a safe harbor of relatively “clean” programming on the country’s broadcast stations. Although competition abounds and the number of households that rely on broadcast continues to dwindle, the networks remain enormous draws for the viewing public, no more so than during live sporting and entertainment events; these channels also carry indispensable local news. There is a legitimate policy debate to be had about whether the FCC should continue to monitor broadcasters for indecency violations, but this discussion is better left to the political and policy arenas and not to a court of law.
benton.org/node/110438 | Washington Post
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RTDNA AND TRANSPARENCY
[SOURCE: Radio Television Digital News Association, AUTHOR: Mike Cavender, Kathy Kirby]
RTDNA is asking its members for help compiling in providing the Federal Communications Commission about new disclosure/reporting requirements. To complete a proposed form, RTDNA says, television stations would need to use knowledgeable staff (presumably news staff) to content code programming using the proposed categories. Since programs or program segments may be reported in only one category, the coding task necessarily will involve certain judgment calls. In addition, the FCC’s requirement that stations break multi-segment newscasts, talk shows, and other programs down into program segments and report extensive information about each of these segments would involve considerable time and effort. The FCC is considering notifying stations of the selected dates for the sample or composite week at the end of the quarter, which would require stations to continuously code programming or hold onto tapes or other records of programming after they air. RTDNA Executive Director Mike Cavender urges members to look at the FCC’s proposed form, and to take just a few minutes of time to complete the questionnaire, so that RTDNA can inform the FCC about the potential significant consequences this reporting requirement will have for broadcast news.
“Your news staffs already are doing more with less,” the authors warn. “If this reporting requirement change is implemented as it stands, even more work unrelated to news-gathering and reporting will be required.”
benton.org/node/110411 | Radio Television Digital News Association
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GOVERNMENT AND COMMUNICATIONS

LAWMAKERS PRESS DHS ON INTERNET MONITORING
[SOURCE: Reuters, AUTHOR: Mark Hosenball]
Leaders of a congressional subcommittee are urging the Department of Homeland Security to extensively monitor social media sites like Twitter and Facebook to detect "current or emerging threats." The top Republican and Democrat on a House counter-terrorism subcommittee last month sent a letter to Homeland Security's intelligence chief encouraging department analysts to pore over huge streams of social media traffic. Reps Patrick Meehan (R-PA) and Jackie Speier (D-CA) said in the letter to Caryn Wagner, undersecretary of homeland security for intelligence and analysis, that they "believe it would be advantageous for DHS and the broader Intelligence Community to carefully parse the massive streams of data from various social media outlets to identify current or emerging threats to our homeland security."
benton.org/node/110432 | Reuters
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SEARCH

FTC EXPANDS GOOGLE PROBE
[SOURCE: Bloomberg, AUTHOR: Sara Forden, Brian Womack]
The Federal Trade Commission is expanding its antitrust probe of Google to include scrutiny of its new Google+ social networking service, according to two people familiar with the situation. The competition issues raised by Google+ go to the heart of the FTC’s investigation into whether the company is giving preference to its own services in search results and whether that practice violates antitrust laws, said the people, who declined to be identified because the probe isn’t public.
Google this week introduced changes to its search engine so that results feature photos, news and comments from Google+, naming the new function “Search, Plus Your World.” Users who opt for Google+ see personal information about their friends included from the social networking service when they enter a query. The changes sparked a backlash from bloggers, privacy groups and competitors who said the inclusion of Google+ results unfairly promotes the company’s products over other information on the Web.
benton.org/node/110429 | Bloomberg
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HAS GOOGLE BROKEN PROMISE?
[SOURCE: GigaOm, AUTHOR: Mathew Ingram]
[Commentary] There’s been a lot written about the benefits and disadvantages of Google’s new personalized search, which the web giant calls “Search plus Your World.” Some say they appreciate social results in their searches, while others say Google is just cluttering up its results with useless content, so they are turning to alternatives like Microsoft’s Bing. But as author Steven Levy notes in his analysis of Google’s new features, the real point is that by favoring results from its own Google+ social network over content from competing networks such as Twitter and Facebook, the company is dangerously close to reneging on its original promise to provide unbiased links to those searching for information.
benton.org/node/110421 | GigaOm
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OWNERSHIP

TRIBUNE BANKRUPTCY UPDATE
[SOURCE: Crain’s Chicago Business, AUTHOR: Lynne Marek]
Tribune Company is aiming to exit bankruptcy protection by the third quarter, following a court hearing Jan 11 that reaffirmed a May hearing date on the company's revamped reorganization plan. “While it is tough to predict an exact timetable for Tribune's emergence from Chapter 11, it is certainly possible that we could emerge late in the third quarter of this year,” Tribune Chief Restructuring Officer Don Liebentritt said in a memo to employees. The company would seek necessary Federal Communications Commission approval “as quickly as possible” after confirmation of the plan, he said in the memo.
benton.org/node/110413 | Crain’s Chicago Business
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WHAT NEWS WAS

HOLIDAYS OVER – BACK TO WORK
[SOURCE: Benton Foundation, AUTHOR: Kevin Taglang]
The holidays must be over, cause there certainly was a lot going on in telecommunications policy this week. We’ve had our eye on a report exploring federal investment in information infrastructure, a proposal to use the Universal Service Fund to make broadband service more affordable for low-income families, the Supreme Court’s protect of the First Amendment, the introduction of new Internet domain names, and a raging debate on how to deal with foreign websites that steal U.S. copyright material.
http://benton.org/node/110491
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