February 2012

AT&T Doubles Upgrade Fee for Cellphones

AT&T doubled the price of upgrading to a new cellphone — a one-time fee that you pay in addition to the cost of the phone itself. The company said it was raising the fee because today’s cellphones are more complex, so the costs of upgrading are higher. The new upgrade fee is $36, up from $18. Sprint, a smaller wireless carrier, raised its upgrade fee to the same price last year. Verizon Wireless does not charge an upgrade fee for people whose contracts have run their course, though it does charge a one-time $35 activation fee for new customers.

AT&T’s statement raises more questions than it answers. It’s unclear how a customer’s switching to a new and improved phone incurs more costs for a carrier. And the new upgrade fee applies not only to smartphones, but also to traditional cellphones, which aren’t “more sophisticated than ever before.” “There are the costs we need to recover,” said Mark Siegel, a spokesman for AT&T. “There’s time and work involved in upgrading you to a brand-new device. Because those devices are increasingly more complex, the upgrade process is more complex.”

YouTube’s Offer Video-Makers Can’t Refuse: We’re Putting All Your Stuff Everywhere

YouTube rolled out a new app for Google TV. And behind the scenes, YouTube has made a small but important change in the way it deals with content owners.

YouTube is now insisting on the ability to play all videos from content “partners” — video owners that share ad revenue with the site — on all platforms, including mobile phones and connected TVs. Previously, some video owners have held back their content from some devices, in hopes of making separate deals with other distributors, like Netflix or Microsoft’s Xbox unit. But now YouTube says it wants to put all its stuff everywhere. The site informed partners about the change at the end of January, and required them to sign off on the deal within a few days, via an electronic “click form.” The terms don’t affect any of the video makers that YouTube is working with via its new “channels” program, because those companies had already agreed to multi-platform distribution. And there will also be a class of very big media companies that may not have to play by the same rules, either.

Google, Microsoft push for FCC flexibility in spectrum auctions

Hundreds of nonprofit groups and companies, including Google and Microsoft, urged Congress to not restrict the Federal Communications Commission's (FCC) authority to structure proposed auctions of airwaves, known as spectrum.

"We reiterate our strong belief that compromise legislation should include language that gives the FCC clear flexibility to make appropriate spectrum allocation decisions that will raise revenue, support vibrant wireless competition and technological innovation, and promote rural broadband deployment," the groups wrote. "We urge Senate and House negotiators to include provisions that preserve the FCC’s existing authority to respond to changes in this continually evolving and dynamic market." The letter was also signed by the National Cable and Telecommunications Association, Public Knowledge, the Free Press Action Fund and the United Church of Christ's Office of Communication.

Cox-to-Time Warner Cable Firms Hit Phone Grip on Hospitals

Basic cable-TV subscribers have fallen every year since 2005, from 66 million to 59.3 million in 2010, according to data compiled by Bloomberg. Video sales fell 1.1 percent in 2011 from a year earlier at Time Warner Cable Inc., the second-largest U.S. cable provider. Comcast Corp., the largest cable carrier, reports earnings Feb. 15. While cable companies still rely on residential services for the majority of their revenue, the biggest growth in the industry is from connecting regional businesses with broadband and other services, particularly hospitals and schools. Hospitals are prime candidates to upgrade their Internet networks from slower connections to cable broadband as the government mandates the digitization of medical records, said Phil Meeks, Cox’s senior vice president of business services.

Where Are You Going, Where Have You Been?

“2012 is going to be a huge year in terms of innovation—not just with respect to being able to leverage location to contextualize the types of advertising and offers that a consumer receives, but also then to turn the corner on that and turn it into actual commerce in the physical world,” said Walt Doyle, CEO of the location-based service Where.

And geotargeting doesn’t stop with the widely cited example of a free cup of Starbucks. While often accused of not living up to its promise, we likely will see the day, and soon, when location-based technology redefines behavioral targeting as we know it, when a consumer packaged-goods company recognizes that a shopper is in the cereal aisle and sends a Wheaties coupon to her phone. What’s more, in the not-so-distant future, a marketer could use technology like that of Where to track a person’s daily routine so precisely that it knows when she’s on her way to the office, the gym or home for the evening. To be sure, the future of location-based marketing is about more than just check-ins.

FCC’s Semiannual Regulatory Agenda

Twice a year, in spring and fall, the Federal Communications Commission publishes in the Federal Register a list in the Unified Agenda of those major items and other significant proceedings under development or review that pertain to the Regulatory Flexibility Act. The Unified Agenda also provides the Code of Federal Regulations citations and legal authorities that govern these proceedings.

FCC FY 2011 Annual Performance Report

This report details the Federal Communications Commission’s progress toward fulfilling its strategic goals and meeting its performance commitments. The purpose of the Annual Performance Report is to increase our agency’s accountability by making detailed performance information transparent and accessible to all citizens. The FY 2011 Annual Performance Report looks retrospectively and so it reports on the FCC’s strategic goals for FY 2011. The FCC detailed those goals in the FCC’s FY 2011 Annual Performance Plan issued in February of 2010 as part of the FCC’s FY 2011 budget submission to Congress.

FCC Refreshing the Record Regarding Misuse of Internet Protocol Relay Service

The Federal Communications Commission seeks to refresh the record on several issues pertaining to misuse of Internet Protocol (IP) Relay Service, including issues that were initially raised in the Further Notice of Proposed Rulemaking released by the FCC on May 8, 2006.

IP Relay is a form of text-based telecommunications relay service (TRS) that uses the Internet to allow individuals with hearing and/or speech disabilities to communicate with other individuals. The FCC remains concerned that individuals who do not have a hearing or speech disability may be continuing to misuse IP Relay by, for example, calling merchants to place orders using fake, stolen, or otherwise invalid credit cards. Such abuse not only drains the TRS Fund that supports these services, but also harms legitimate consumers whose calls are rejected by individuals and businesses that have been the victims of such misuse. The FCC believes that a refreshed record will better enable the FCC to take timely and appropriate action to address these problems.

Senate cybersecurity bill would let firms appeal Homeland Security regulations

Critics say allowing Department of Homeland Security to determine requirements in consultation with the private sector could water down security provisions.

The leadership of the Senate Homeland Security Committee will introduce a comprehensive cybersecurity bill on Feb 14 that would allow firms to appeal whether new security regulations should apply to their sector. The legislation would task the Department of Homeland Security with determining which sectors of the economy would be covered by new cybersecurity regulations, after risk assessments in consultation with the private sector, the intelligence community and others. But designated sectors would have the right to appeal whether the regulations apply to them. Several groups representing portions of the private sector considered part of the critical infrastructure have expressed concern about the impact of the regulations on both security and the bottom line.

Sen Feinstein Introduces Information-Sharing Bill Ahead Of Senate Cybersecurity Debate

Senate Intelligence Chairman Dianne Feinstein (D-CA) introduced legislation designed to help businesses and government communicate about cyberthreats.

Feinstein's proposal would require the government to designate an agency as a "cybersecurity exchange" to coordinate information sharing; allow the government to share classified cybersecurity information with certain private-sector organizations; and provide liability protection for companies that share information. A comprehensive Senate cybersecurity bill has been in the works for months and is expected to be introduced before a hearing of the Senate Homeland Security Committee on Feb 16. Chairman Feinstein say she plans to incorporate her proposals into that broader bill.