April 2012

Clearwire Tumbles After Verizon Announces Spectrum Sale

Clearwire, the unprofitable wireless-broadband wholesaler, fell to its lowest price since January after Verizon Wireless said it will sell some of its spectrum.

Shares of Clearwire declined 6.9 percent to $1.76 at the close in New York, after earlier retreating 20 percent. The Bellevue, Washington-based company’s shares have dropped 70 percent in the past 12 months. Clearwire, which hasn’t reported an annual profit in at least five years, could be forced by creditors to sell spectrum assets, which were worth as much as $4 billion at the end of September, Ping Zhao, a CreditSights Inc. analyst, has said. Any sale of good quality spectrum makes Clearwire’s holdings less valuable, Christopher King, an analyst at Stifel Nicolaus & Co., said.

FCC Launches “Bill Shock” Website

The Federal Communications Commission today launched a new ‘bill shock’ website, an online tool to help consumers track implementation of recent commitments by wireless carriers to provide usage alerts before and after consumers exceed their plan limits.

Bill shock is a sudden and unexpected increase in monthly wireless bills that happens when consumers’ unknowingly exceeding plan limits for voice, data and text. Bill shock can also happen when consumers travel abroad and get hit with unexpected international roaming charges. A recent FCC survey found that 30 million Americans – or one in six wireless users – have experienced bill shock.

Facebook: We Have No Plans for an Ad Network

Facebook's VP-Business and Marketing Partnerships David Fischer cited a range of brands from Procter & Gamble to Domino's to the reboot of the classic soap "Dallas" as innovative users of the social network in his remarks at Ad Age's Digital Conference.

Facebook's initial public offering is coming next month, so the company is currently in a quiet period where executives are prohibited from discussing the company's financials. But since its FMC conference for marketers in February -- when it introduced pricey log-out ads and a new package called "Reach Generator" that promises marketers that ads built out of their timeline posts will reach a far higher percentage of their fans than they would have organically -- Facebook has been on a mission to rebrand ads as "stories." Mr. Fischer spoke to that, noting that marketers' Facebook strategies need to center on "content beyond what you'd traditionally call advertising." The power of regularly messaging fans and their friends is at the core of Facebook's pitch to marketers, and Mr. Fischer cited data supporting the notion that "always-on" marketing drives results.

Broadcast Groups Pitch Chairman On Political File Compromise

An attorney and some top broadcast group execs met with Federal Communications Commission Chairman Julius Genachowski and Media Bureau staffers earlier this week to make a last-ditch pitch for their proposal to put aggregated political ad totals from candidates online, rather than individual ad buys.

The proposal was pitched earlier this year by Barrington Broadcasting Co., Belo Corp, Cox Media Group, Dispatch Broadcast Group, The E.W. Scripps Company, Gannett Broadcasting, Hearst Television, Meredith Broadcasting Group, Post-Newsweek, Stations, Raycom Media and Schurz Communications, as a win-win alternative to the FCC's proposal of putting individual spot prices online, which broadcasters strongly oppose. Attorney Jonathan Blake, representing the broadcasters, told the commission other broadcast groups had signaled they would be willing to support the compromise proposal.

Lawmakers Want Government Using Data Like Google, Facebook

Federal, state and local governments could learn a thing or two from major Internet companies, using data to improve public benefits such as health care and education, lawmakers said at a House Ways and Means subcommittee hearing.

Ways and Means Subcommittee on Human Resources Chairman Geoff Davis (R-KY) pointed to companies like Facebook and Google, which base their business on the data they have access to. "It's long past time for the government to use those same sort of tools," he said. In March the White House announced a plan to pour millions of dollars into harnessing the huge amounts of data, from genetic databases to earthquake tracking, collected by government agencies. The "Big Data Research and Development Initiative" will provide more than $200 million "to greatly improve the tools and techniques needed to access, organize, and glean discoveries from huge volumes of digital data," the Office of Science and Technology Policy said at the time.

House Homeland Security Panel Fights to Stay in Cybersecurity Debate

With the House poised to consider a range of cybersecurity bills, a markup in the House Homeland Security Committee clearly showed that the panel's leaders fear they are just along for the ride.

Sponsors of the Homeland Security’s contribution to the cybersecurity debate, the Promoting and Enhancing Cybersecurity and Information Sharing Effectiveness Act of 2011, or the PrECISE Act, spent nearly five hours at the April 18 markup walking back proposals included in earlier versions of the bill. The bill was the product of more than a year of work and it cleared the Cybersecurity, Infrastructure Protection, and Security Technologies Subcommittee by a voice vote in February. On April 17, however, lead sponsor Rep. Dan Lungren (R-CA) introduced a substitute that significantly reduced the scope of the bill. The panel approved the amended bill 16-13.

As approved by the subcommittee, the PrECISE Act would have encouraged information sharing among businesses and government; give Homeland Security officials more oversight over some critical infrastructure networks; and provide for stricter privacy protections. But in response to pressure from House Republican leadership and members of the House Intelligence Committee, which has its own information-sharing bill, Rep Lungren dropped many of the critical infrastructure and DHS provisions. If those provisions hadn’t been trimmed, a visibly resigned Rep Lungren told disgruntled committee members, the bill would never make it to the floor and the Homeland Security Committee would have been sidelined. “That’s a fact of life,” he said.

Survey: social media evidence soaring in court cases

Every week the media seems to offer a new account of some dumb crook who is off to the slammer because he posted about his caper on Facebook. It turns out this phenomenon may be even more widespread than we think. A new survey reports that social media played a significant role in nearly 700 cases in the past two years alone and that most of these involved either MySpace or Facebook. LinkedIn and Twitter were the next most common social media sites to produce evidence for the justice system. Only one case mentioned FourSquare. The report doesn’t mention Google+ at all. The trend does not appear to be abating.

Dish Network aims for smarter phones, simpler bills

Dish Network chairman Charlie Ergen wants to launch a stand-alone wireless business that would offer mobile broadband, text and voice services to compete against telecom giants AT&T and Verizon Wireless.

Ergen, who stepped down as Dish chief executive in June to focus on the mobile strategy, revealed details of that plan during a discussion at the Silicon Flatirons Center for Law, Technology, and Entrepreneurship at the University of Colorado at Boulder. "We have to start the wireless business outside of Dish Network, then we'll fold it in," he said. He said that, personally, he wants a phone that can be used for talking, texting and surfing the Web at the same time, and with a bill that he can understand. "I signed up for a plan from one of the carriers — it was $59, but my bill is $164.28 and it's like 18 pages long," he said. "I don't think the wireless business has to be that way. I think you can actually have a phone that works, and I think you can have a bill that you understand."

Top hospitals use more advanced IT: report

The hospitals named to Thomson Reuters' 100 Top Hospitals list use more advanced levels of information technology as compared with the broader US hospital population, according to research conducted by a Healthcare Information and Management Systems Society subsidiary.

HIMSS Analytics, the organization's market-research arm, looked at hospitals that received the award in 2009 or 2010 and their HIMSS Analytics' electronic health-record adoption model scores. "The very strong correlation between Thomson Reuters 100 Top Hospitals and hospitals at higher levels on the EMRAM model shows the benefits of deploying advanced clinical applications in the delivery of healthcare in U.S. hospitals," said John Hoyt, executive vice president of HIMSS Analytics. The research found that 14% of the 100 Top Hospitals in 2009 were in stages 5, 6 or 7 of EHR adoption that year, compared with 6% of US hospitals. In 2010, 21% of the 100 Top Hospitals were at stage 5 or higher, compared with about 9% of US hospitals.

Not Another SOPA

[Commentary] Three months ago, the Stop Online Piracy Act was killed by righteous, indignant Internet activists who found the legislation so menacing that they blacked out their sites in protest. Now, the story goes, SOPA is back, like a movie villain rising from the grave for a bloody sequel. CISPA, the Cyber Intelligence Sharing and Protection Act, has been dubbed “SOPA 2.0” by tech blogs, who want you to believe it’s the same devil in a new disguise. They’re wrong.

CISPA is a different devil altogether. And while it’s unlikely to provoke anywhere near the same level of outcry as SOPA, it has the potential to be insidious in its own right. The difference is that, if CISPA is abused, it won’t be the tech firms that get hurt. It will be you. SOPA was primarily about intellectual property. The bill would have given digital rights-holders -- record companies and film studios, for instance -- sweeping power to go after websites that appeared to “enable or facilitate” copyright infringement. Those that didn’t comply could be blacklisted. It’s easy to see why companies like Google and Facebook adamantly opposed it. It was a broadside against the culture of free sharing that underpins their business models. CISPA, in contrast, is about cybersecurity, not your bootleg copy of Avatar. Its main goal is not to protect copyright-holders’ profits, but to protect websites and the government from hackers. Early incarnations of the bill set SOPA opponents on edge with a line about protecting intellectual property. But its bipartisan sponsors, Reps. Mike Rogers of Michigan and Dutch Ruppersberger of Maryland, wisely edited CISPA last week to remove that mention. It should now be clear to all but the most paranoid that CISPA isn’t SOPA 2.0. At this point, to label it as such is to both miss the bill’s legitimate aim and to overlook the bill’s real potential harms.