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April 2012

This Internet provider pledges to put your privacy first. Always.

Step aside, AT&T and Verizon. A new privacy-protecting Internet service and telephone provider still in the planning stages could become the ACLU's dream and the FBI's worst nightmare.

Nicholas Merrill is planning to revolutionize online privacy with a concept as simple as it is ingenious: a telecommunications provider designed from its inception to shield its customers from surveillance. Merrill, 39, who previously ran a New York-based Internet provider, told CNET that he's raising funds to launch a national "non-profit telecommunications provider dedicated to privacy, using ubiquitous encryption" that will sell mobile phone service and, for as little as $20 a month, Internet connectivity. The ISP would not merely employ every technological means at its disposal, including encryption and limited logging, to protect its customers. It would also -- and in practice this is likely more important -- challenge government surveillance demands of dubious legality or constitutionality.

Cybersecurity Bill Faces Tough Odds

After last year’s intense debate of an anti-piracy bill, any legislation dealing with Internet security faces an uphill climb.

That point was made clear by House Intelligence Chairman Mike Rogers (R-MI), who was careful to point out differences between his bipartisan cybersecurity legislation and last year’s failed online piracy bill that was crushed after an all-out lobbying campaign from Internet companies and users. “Apples and oranges,” the Chairman Rogers told reporters in a conference call when asked whether his legislation, which encourages private companies and the federal government to share information related to cybersecurity threats, might face a similarly grim fate as the Stop Online Piracy Act that was killed last year. Rep. Dutch Ruppersberger (D-MD), the ranking member on the Intelligence panel, also made an economic case for the bill. “When these hackers steal intellectual property, they take new high-paying jobs along with all the other damages that we do have,” Rep Ruppersberger told reporters. Reps Rogers and Ruppersberger were careful to focus on the security and economic aspects of the bill and highlighted the coalition of supporters they have built through dozens of meetings held last year.

It’s imperfect, but CISPA isn’t the devil in disguise

When it comes to outrage over the Cyber Intelligence Sharing and Protection Act of 2011, or CISPA, don’t believe the hype (not all of it, at least).

The Electronic Frontier Foundation and hacktivist group Anonymous might have overblown the potential ramifications of the bill, but that doesn’t mean it’s well-written. CISPA still needs work to clear up what, exactly, it allows for, but strong congressional and industry support might make it a lot harder to stop than was the Stop Online Piracy Act of 2011, or SOPA, that created an online firestorm earlier this year. The criticism that, by including a provision for the protection of intellectual property, CISPA is little more than a less-conspicuous form of the draconian SOPA bill seems misguided. CISPA is vague and unnecessarily broad, but it’s not SOPA. In fact, the very same Internet companies that were so adamantly opposed to SOPA might support CISPA. Facebook already does. So does outspoken SOPA critic Darrell Issa (R-CA).

Here’s why.

  • CISPA is actually good, in theory.
  • CISPA doesn’t require service providers to do anything.
  • I’m not certain the inclusion of intellectual property protection was driven by ulterior motives.

National Emergency Alert System Goes Live

After much anticipation, the Commercial Mobile Alert System (CMAS) went live last weekend, a first-of-its-kind national alert system in the U.S. that allows the public to receive major emergency alert notifications on their mobile phones without having to sign up or pay for them.

CMAS is the interface to the Wireless Emergency Alerts (WEA) service that wireless phone carriers will roll out in the U.S. this year. The system was developed through a partnership between the Federal Emergency Management Agency (FEMA), the FCC and wireless phone carriers to increase public safety nationwide, according to FEMA. Through the CMAS system, authorized public safety authorities will be able to use FEMA’s Open Platform for Emergency Networks (IPAWS-OPEN) to send geographically specific emergency alert notifications similar to text messages to the public.

Transparency groups say THOMAS legislative website is outdated

The Library of Congress’ THOMAS online system for tracking legislation is outdated and needs to be overhauled to better serve the public, according to more than two dozen transparency watchdog groups.

The THOMAS website ought to be changed to allow for bulk downloads of the legislative data, the groups wrote in an April 10 letter to members of Congress. While THOMAS, named after Thomas Jefferson, initially was an innovative provider of basic information, its technology has fallen behind the times and the system is difficult to use, the groups, including the Sunlight Foundation and Project on Government Oversight, wrote in their letter. Because of the difficulties with THOMAS, millions of Americans are relying on free third-party websites such as GovTrack, OpenCongress and Washington Watch, the groups asserted. But those websites still rely on THOMAS for the data, a process that is “imperfect, expensive and time-consuming,” the watchdog groups wrote.

Biggest loser in Pennsylvania primary isn't Santorum

That sniffling sound you hear is not Rick Santorum's supporters bemoaning his decision to pull the plug on his presidential campaign but the managers of forty-six Keystone State television stations counting the ad dollars they have lost.

So far this year, the race for the Republican presidential nomination has brought a bonanza of ad dollars to broadcasters in states that have played host to early contests, the more so because of the rise of super PACs, political action committees that can raise and spend money in unlimited amounts in support of -- or opposition to -- candidates for office. Spending in Pennsylvania had only begun to ramp up in advance of the much anticipated April 24 primary featuring Santorum, who represented the state for 16 years in Congress, and GOP frontrunner Mitt Romney. The biggest ticket item on Sunlight’s tracker so far: $153,000 in media buys by the pro-Romney super PAC Restore Our Future for ads in opposition to Santorum. But local station managers had to be licking their chops at reports that Romney was planning to launch a multi-million-dollar ad war to finish Santorum off.

Finding journalism's future

[Commentary] This failure of the market suggests a need for policies to preserve public-service journalism and encourage new journalistic experiments. Since journalism is vital to self-government, threats to its survival should be a focus of national debate. We can no longer take the Fourth Estate for granted. The current crisis should stimulate debate about journalism's role in a democratic society and about alternative structures that can support it. While scrutinizing The Inquirer's sale, we should take this opportunity to consider broader solutions. Otherwise, our struggling news media could disappear - or become playthings of the wealthy and powerful.

[Pickard is an assistant professor at the Annenberg School for Communication at the University of Pennsylvania]

Black, Latino, Asian and White: Diversity at NPR

When National Public Radio announced the hiring of Gary Knell as CEO in October, Joel Dreyfuss of The Root, an African-American oriented website, published an open letter challenging Knell and NPR to work harder to diversify its staff and programming.

So, over recent months, I have been building my own notes in an attempt to measure just how good a job NPR is doing now. What I find so far is that, racially and ethnically, NPR is not doing badly, and is getting better. To see if Latino, black and Asian listeners find programming that appeals to them, I broke down NPR audience figures by higher education and income. I discovered that within these categories, the levels of representation of the minority groups and whites are not far apart. Minority staffing in the newsroom and on air, meanwhile, continues to improve. NPR does significantly better than the industry averages in radio, television and newspapers. But then, we expect NPR to do better.

Russia looks to ISPs to crack down on piracy

The ongoing battle between internet providers and rights owners is taking a surprising turn, with the news that Russia is considering whether it can make ISPs liable for the copyright infringements of their customers.

Reports in the local media say that the country’s Ministry of Internal Affairs is looking to bring in fresh laws that would make service providers responsible for illegal filesharing between those using their networks. According to Vedomosti.ru, the government is undertaking a consultation on the issue, and will report back towards the end of this month. If it goes ahead, the laws that criminalize the network could hit the statute books later this year.

April 11, 2012 (Comcast has some Xplaining to do)

BENTON'S COMMUNICATIONS-RELATED HEADLINES for WEDNESDAY, APRIL 11, 2012

New America Foundation hosts Defining and Measuring Meaningful Broadband Adoption http://benton.org/calendar/2012-04-11/

WIRELESS/SPECTRUM
   New Initiatives to Combat Massive Smartphone & Data Theft - press release
   FCC move to disable stolen smartphones won't stop government data thieves - analysis [links to web]
   Analyst: 'The entire cellphone and computing ecosystem will be shaken to the ground'
   GOP lawmakers seeking cost of LightSquared inquiry to taxpayers
   Sens. Kerry, Graham urge FCC to save LightSquared [links to web]
   Global LTE: Verizon dominates today, but which operators will lead in 2016? - analysis [links to web]
   A Billion-Dollar Turning Point for Mobile Apps - analysis
   Data Points: How We Use Our Mobiles
   Google's $12 Billion Toy

INTERNET/BROADBAND
   Comcast has some Xplaining to do - op-ed
   Computer and Internet Use Supplement to the Census Bureau’s Current Population Survey - public notice
   Proposed Bill Would Create New Broadband Grant Program
   Woman sues Verizon for lying about Internet speed [links to web]
   California Legislation Would Eliminate Consumer Protection for Internet Services [links to web]
   BTOP Project OpenCapeNetwork is On Target for January 2013 Completion - press release [links to web]
   FTTH Council Releases New Stats, Says Stimulus Projects 38% Complete [links to web]
   House to take up cybersecurity bill with revisions [links to web]
   Online sales tax battle pits Amazon against Norquist and Sen. DeMint [links to web]

TELEVISION
   GAO Looking Into Sponsorship IDs
   Why you shouldn’t just blame your cable company for that $200 bill - analysis
   The cable industry isn’t stupid, right? - analysis
   Bloomberg files FCC complaint against Comcast
   Consolidation Foes Use Bloomberg Complaint Against SpectrumCo Deal
   Bloomberg Assesses Comcast's NBCU Deal Compliance [links to web]
   Game of DVRs
   Malone and Murdoch

MEDIA & ELECTIONS
   Spanish-language stations left out of campaign spending rule
   Radio Revenues Growing, Propelled By Political Ads

CONTENT
   MPAA's former tech officer now argues against SOPA, PIPA
   Instagram and the Internet’s ‘Secret’ Places
   Lawmakers: Cybersecurity bill is not SOPA [links to web]
   MPAA: you can infringe copyright just by embedding a video [links to web]
   Second-Screen Sports Options Circumventing TV Rights Pacts [links to web]
   Friends Have More Credibility Than Brands [links to web]
   Some big-six publishers refuse to sign new contracts with Amazon [links to web]
   Manager Benched for Castro Praise
   The Marlins Punish Political Speech - editorial

TELECOMMUNICATIONS
   In the “I Dare You” Game of USF Waivers, RLECs Will Win or Fold - analysis
   FCC Seeks Comment on Companies Seeking to be Designated as Low-Income Eligible Telecom Carrier - public notice [links to web]
   Are landlines doomed? - analysis

PRIVACY
   'Do Not Track' Web Browser Option Gains Steam [links to web]
   There's An App for That - But At What Cost? - op-ed [links to web]

POLICYMAKERS
   White House to establish chief technology officers' council [links to web]
   Census Director Robert Groves to Leave the Commerce Department This Fall - press release [links to web]
   Feds work out the bugs in top secret telework [links to web]
   Hillary Clinton likes ‘Texts from Hillary’ Tumblr [links to web]

GOVERNMENT & COMMUNICATIONS
   How democracies clamped down on the Internet
   UK 'exporting surveillance technology to repressive nations' [links to web]
   Philly Cops Bust Crime In 140 Characters Or Fewer [links to web]
   Increasingly, Reporters Must First Answer Some Questions [links to web]

MORE ONLINE
   Terms of service violations not a crime, appeals court rules [links to web]
   US court narrows reach of computer fraud law [links to web]
   Google launches the “power of the internet” campaign [links to web]

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WIRELESS/SPECTRUM

COMBATING SMARTPHONE THEFT
[SOURCE: Federal Communications Commission, AUTHOR: Press release]
Federal Communications Commission Chairman Julius Genachowski joined major police department chiefs, including New York City Police Commissioner
Raymond E. Kelly, Philadelphia Police Department Commissioner Charles Ramsey, Washington, D.C. Metropolitan Police Chief Cathy Lanier, Washington, D.C. Mayor Vincent Gray, wireless carriers, and Senator Chuck Schumer to announce new initiatives to combat cell phone and data theft. Genachowski commended police departments and members of Congress, in particular Senator Schumer, for calling attention to a growing epidemic of robberies targeting smartphone users. Genachowski announced an industry commitment to develop a shared, centralized database that will record unique identifiers of stolen wireless devices to prevent their reuse, thereby making it harder for thieves to resell stolen wireless devices. Legislation, sponsored by Senator Schumer, will ensure that authorities have the tools they need to crack down on efforts to evade this technological solution. New initiatives by wireless carriers -- initially including AT&T, T-Mobile, Verizon and Sprint who cover 90 percent of US subscribers -- include:
Implement a database to prevent use of stolen smartphones. Within six months, when Americans call their participating wireless provider and report their wireless devices stolen, their provider will block that device from being used again. This system will be rolling out globally using common databases across carriers over the next 18 months.
Encourage users to lock their phones with passwords. Smartphone makers will notify and educate users in the most highly visible ways—through messages on the smartphone itself and through “Quick Start” user guides—about how to use passwords to deter theft and protect their data.
Educate users on lock/locate/wipe applications. Wireless providers will directly inform their customers about how to find and use applications that enable customers to lock/locate/and wipe smartphones remotely.
Public education campaign on how to protect your smartphone and yourself. The wireless industry will launch a campaign, with media buys, to educate consumers on how to protect their smartphones and themselves from crime.
Progress benchmarks and ongoing dialog. The wireless industry will publish quarterly updates and submit them to the FCC on progress on these initiatives.
benton.org/node/119645 | Federal Communications Commission | Fact Sheet | Chairman Genachowski
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WINDOWS 8
[SOURCE: Fortune, AUTHOR: Philip Elmer-DeWitt]
ACI Research's Edward Zabitsky, who famously advised clients to short Apple when it was selling for $450 a share, has seen the future and it is Microsoft's Windows 8. "If there is one company in the world that understands how to slay a dominant operating system, it is Microsoft," he begins his latest missive, a note subtitled "The Wounded Bear From Redmond Awakens." "Enter Microsoft. Windows 8 is Microsoft`s first genuine paradigm shift since Windows 95. It completely embraces web apps based upon technologies like HTML5, Javascript, CSS3, WebGL, et al. Web apps will cause a violently disruptive change for Microsoft and for the entire industry. Make no mistake -- this is not just about Apple. The entire cellphone and computing ecosystem will be shaken to the ground."
benton.org/node/119624 | Fortune
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LIGHTSQUARED INQUIRY
[SOURCE: The Hill, AUTHOR: Brendan Sasso]
Sen. Chuck Grassley (R-Iowa) and Rep. Michael Turner (R-OH) have asked Larry Strickling, the head of the National Telecommunication and Information Administration (NTIA), how much money the government spent testing LightSquared's network, how many employees worked on the project and whether the Administration will ask for reimbursement. The lawmakers noted that LightSquared's chief financial backer, billionaire Philip Falcone, is considering bankruptcy for the company. "If LightSquared does indeed declare bankruptcy, our concern is that the federal government will be unable to recoup the taxpayer dollars it has expended funding testing on LightSquared's network," the Republicans wrote.
benton.org/node/119619 | Hill, The
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TURNING POINT FOR MOBILE APPS?
[SOURCE: New York Times, AUTHOR: Jenna Wortham]
The path for Internet start-ups used to be quite clear: establish a presence on the Web first, then come up with a version of your service for mobile devices. Now, at a time when the mobile start-up Instagram can command $1 billion in a sale to Facebook, some start-ups are asking: Who needs the Web? Smartphones are everywhere now, allowing apps like Foursquare and Path to be self-contained social worlds, existing almost entirely on mobile devices. It is a major change from just a few years ago, underscoring how the momentum in the tech world is shifting to mobile from computers. In that context, the Instagram deal looks like something of a turning point, as even the Web giant Facebook tries to get a better grasp on a market that requires a rethinking of old rules.
benton.org/node/119689 | New York Times | San Jose Mercury News
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HOW WE USE OUR MOBILES
[SOURCE: AdWeek, AUTHOR: Lucia Moses]
Some mobile habits overlap, but there are significant differences in how consumers use their tablets and smartphones which marketers need to understand to effectively use the devices. Like portable personal assistants, smartphones accompany us everywhere. They tend to be used primarily for task-related activities, like sending email, going online and sending text messages, so text message and shorter ads have been successful in this environment. Tablets, meanwhile, are most likely to be taken out at home and used for long-term media consumption, so users may be more tolerant of longer ads as long as they don't get in the way of their media experience.
benton.org/node/119688 | AdWeek
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GOOGLE-MOTOROLA
[SOURCE: Wall Street Journal, AUTHOR: Dennis Berman]
Here's a business riddle: Divine Google intentions for its largest-ever acquisition, the $12.5 billion purchase of the once-great, now-faltering Motorola Mobility. Motorola represents one of the thorniest strategic and operational challenges in Google's 14-year history. Oddly, few seem to be paying attention. What will happen to Motorola’s 20,500 employees? What of the factories churning out low-margin cellphones and cable-TV boxes? What of the five years of losses, some $5.3 billion in all? With Google stock down 3% year to date, compared with a 15% rise for the Nasdaq Composite, it seems logical that Google might just sell off these metal-bending headaches and focus on its strength—spreading mobile Web search around the world. So, it's gut-check time. Does Google sincerely want to be a company that makes actual stuff? The disquieting answer is that there appears to be no sense that a choice is even required.
benton.org/node/119686 | Wall Street Journal
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INTERNET/BROADBAND

XFINITY-XBOX
[SOURCE: C-Net|News.com, AUTHOR: Matt Wood]
[Commentary] What do you get when you cross Xbox with Xfinity? A double-X rating for obscene power grabs in the video market? Or at least a double-extra-large helping of questions about the potential impact on consumers? Whatever the answer, it's easy to see why Comcast's recent data-cap announcement set off a flurry of Internet chatter. The Xfinity Xbox exemption casts real doubt on the justification for monthly caps. Is Comcast using its data caps in ways that harm competition against its traditional cable TV service? Or is Comcast just unable, at the end of the day, to justify its data caps as any sort of legitimate and effective congestion-management tool? These are exactly the types of questions that lawmakers and consumer protection agencies need to ask before accepting rapidly changing spin from cable companies and their trade associations.
benton.org/node/119613 | C-Net|News.com
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NTIA’S CENSUS QUESTIONS
[SOURCE: National Telecommunications and Information Administration]
The National Telecommunications and Information Administration (NTIA) proposes to add 12 questions to the US Census Bureau’s October 2012 Current Population Survey (CPS) in order to gather reliable data on broadband (also known as high-speed Internet) use by US households. President Obama has established a national goal of universal, affordable broadband access for all Americans. To that end, the Administration is working with Congress, the Federal Communications Commission (FCC), and other stakeholders to develop and advance economic and regulatory policies that foster broadband deployment and adoption. Collecting current, systematic, and comprehensive information on broadband use and non-use by US households is critical to allow policymakers not only to gauge progress made to date, but also to identify problem areas with a specificity that permits carefully targeted and cost-effective responses.
Comments are due June 4, 2012.
benton.org/node/119615 | National Telecommunications and Information Administration
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BROADBAND CONNECTIONS FOR RURAL OPPORTUNITIES
[SOURCE: telecompetitor, AUTHOR: Joan Engebretson]
Sen Kirsten Gillibrand (D-NY) has introduced a bill that would give the Department of Agriculture the ability to issue grants for up to 50% of construction costs for broadband networks in rural areas where market conditions would not otherwise support such a network. The Broadband Connections for Rural Opportunities Program Act of 2012 (S.2275 and also known as the B-CROP Act of 2012) would amend the Rural Electrification Act of 1936 to establish the grant program. Some highlights:
Applications would be made to the Secretary of Agriculture and the bill leaves it to the Secretary to determine application details
In making awards, the bill specifies that priority be given to projects that provide service to the highest proportion of rural residents that do not have access to broadband service or that will use broadband services to stimulate rural economic development. The bill notes that this could include projects that would connect business incubators in rural communities or that would be integrated with county and regional organization plans.
The bill talks about giving the Secretary the discretion to use a certain percentage of budget authority to hire administrative personnel and for a national competition to create and maintain a “comprehensive and interactive rural broadband clearinghouse accessible on the Internet at no cost.” This clearinghouse would have information about “options, opportunities, resources, successful public-private partnerships, comprehensive funding sources and technology tutorials for rural broadband.”
The U.S. Comptroller General would be required to evaluate and report on the effectiveness of all federal broadband assistance programs.
benton.org/node/119597 | telecompetitor
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TELEVISION

SPONSORSHIP IDs
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
The Government Accounting Office is preparing a report to Congress on sponsorship identification requirements for television and radio stations, cable systems and satellite operators. At the request of House Minority Leader Nancy Pelosi (D-CA) and ranking House Commerce Committee member Henry Waxman (D-CA), GAO is looking at "current issues with sponsorship identification by media outlets, including the prevalence of video news releases and sponsorship in news and other features, the prevalence of broadcasters not meeting the requirements, the actions FCC has taken in the past, and the role FCC and others may play in the future as technology changes," according to an e-mail request from a field office analyst to one stakeholder. In the letter, the analyst said the following were the topics GAO had been asked to focus on in its report:
Discuss how FCC regulates the sponsorship identification laws and regulations;
Identify challenges to implementing the regulations, meeting the requirements, and reporting violations;
Discuss if Congress or FCC should consider any changes to the laws or regulations;
Identify, how many complaints FCC has received and what enforcement actions FCC has taken in response to complaints and violations; and
Discuss stakeholders' views on the effect of the regulations and the effect of the enforcement actions.
benton.org/node/119657 | Broadcasting&Cable
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$200 CABLE BILL
[SOURCE: paidContent.org, AUTHOR: Daniel Frankel]
Like the older sibling who seems to be blamed for everything, cable, satellite and telco TV providers caught scrutiny after research firm the NPD Group released a report forecasting that the average multi-channel subscription bill will spiral to around $200 by the end of the decade. Aren’t these guys smart enough to know that they’re forcing consumers to consider internet-based on-demand programming options? Well, they’re not necessarily driving the bus in terms of spiraling subscription costs, the program suppliers are. According to a Nomura Equity Research, fees paid by cable, satellite and telco distributors to program suppliers increased 8.2 percent last year to around $33.5 billion. And they’re likely to increase around 8 percent for each of the next several years going forward, surpassing $39 billion by 2013.
benton.org/node/119609 | paidContent.org
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CABLE AND BROADBAND
[SOURCE: GigaOm, AUTHOR: Stacey Higginbotham]
[Commentary] We’re rapidly moving to a future where cable broadband service will be the predominant choice for consumers who want fast access to the Internet, but in light of a study that predicts $200 bills by 2020 for the pay TV portion of cable, I have to wonder: Are the cable guys the idiots, or is it the consumer? The NPD Group credits rising content licensing fees and the average 6 percent rate increase that cable companies jam down users’ throats each year. But the idea of paying $200 in eight years, or even $123 in 3 years seems like an insanity for most consumers. It also seems like an insanity for the cable companies to attempt given how rising cable costs amid grim economic times leads folks to cut the cord. But is demand for cable inelastic? The NPD report notes that 16 percent of U.S. households don’t have pay TV service. This means 84 percent do — a huge success for the industry. But can it last?
benton.org/node/119608 | GigaOm
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BLOOMBERG COMPLAINT
[SOURCE: The Hill, AUTHOR: Andrew Feinberg]
Bloomberg filed a complaint with the Federal Communications Commission accusing Comcast of favoring its own programming. Bloomberg argues Comcast is violating the conditions of its federally approved merger with NBC-Universal by refusing to group Boomberg’s “BTV” network near other news and business/news channel on its cable networks. Bloomberg's complaint contends that “BTV” has long been ignored by Comcast as the company has revised channel lineups to establish or maintain news neighborhoods. A “news neighborhood” is created when a significant number or percentage of news and/or business channels are placed substantially adjacent to one another in a system's channel lineup. Comcast argues it has not grouped news channels into the same “neighborhoods” since its merger.
benton.org/node/119641 | Hill, The
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BLOOMBERG COMPLAINT AND MEDIA OWNERSHIP
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
Groups opposed to further media consolidation used Bloomberg's charges of Comcast non-compliance, and Federal Communications Commission non-enforcement, of an NBC-Comcast deal condition on news neighborhooding to argue against allowing the MSO and other cable companies to sell their spectrum to Verizon. On a conference call about Bloomberg's charges, Gigi Sohn, president of Public Knowledge, and Joel Kelsey, policy adviser at Free Press, said that the FCC's failure to decide Bloomberg's complaint 14 months after the deal closed [though only 10 months since the complaint was formally filed] called into question its ability to enforce conditions on that or any other deal. The other deal that is top of mind: Verizon's proposed $3.9 billion purchase of spectrum from SpectrumCo., and the associated cross-marketing deals Sohn described as cable and phone competitors laying down their arms and embracing. She asked whether the FCC could be trusted to prevent those competitors from stifling competition through exclusive agreements to market services and jointly develop technologies to integrate wired and wireless video, voice and data? She said if the FCC's inaction on enforcing the neighborhooding condition is any indication, the answer is "definitely no."
benton.org/node/119639 | Broadcasting&Cable
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GAME OF DVRs
[SOURCE: AdWeek, AUTHOR: Sam Thielman]
It’s been axiomatic for years that Sunday nights are one of the most-watched evenings in television, capable of sustaining a larger-than-average number of shows for every taste. But are Sunday nights getting too crowded? Well, sort of. Networks that staked the night out early and are using anchor shows to promote new product will probably do fine. “Sunday has been a destination for our viewers for at least 15 years,” said Susan Ennis, HBO’s executive vp of program planning and original programming strategy. “And as with past Sunday shows, if something good is on, people will find it.” Indeed, HBO’s The Sopranos was Sunday-night appointment viewing for years, and it carved out a niche for prestige drama. That may be part of the problem, actually. “Viewers had gotten used to high-quality, unique programming on Sunday nights, largely because of HBO, and that’s where we decided to go for Mad Men,” said Tom Halleen, AMC’s senior vp of programming and scheduling.
benton.org/node/119646 | AdWeek
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MALONE AND MURDOCH
[SOURCE: Financial Times, AUTHOR:]
Regulators have finally given the go-ahead to merge Australia’s two biggest pay-TV groups. Austar, the takeover target, is majority owned by the US media mogul’s Liberty Global. Meanwhile Foxtel, the buyer, is half owned by local telecoms group Telstra and one-quarter held by Rupert Murdoch’s News Corp. Talks to merge the two groups began a decade ago, but moved forward only last year after Austar deemed Foxtel’s A$1.52-a-share offer “appropriate”. Regulators deliberated over the impact on competition. Their indecision has already wiped out the 20 per cent premium Foxtel was willing to pay. And the greenback’s 2.4 per cent appreciation against the Australian dollar since will have knocked $26m off Liberty Global’s portion of the sale.
benton.org/node/119681 | Financial Times
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MEDIA & ELECTIONS

NO CAMPAIGN RULE FOR SPANISH LANGUAGE STATIONS?
[SOURCE: Los Angeles Times, AUTHOR: Joe Flint]
Although Hispanic voters will play a big part in the 2012 election, Spanish-language stations have been left out of a proposed rule from the Federal Communications Commission requiring big city television stations to put detailed information online about what candidates are spending on the upcoming presidential race. Later this month the FCC will vote on whether television stations should be required to publish information online about how much politicians are spending on TV advertising. Such information is already available to the public, but anyone wanting to see it must visit a TV station and make a formal request. FCC Chairman Julius Genachowski has called making political advertising information readily available a common-sense update to what is already the law of the land. Initially though, only stations that are affiliates of ABC, CBS, NBC and Fox in top-50 markets will be required to put political spending information on the Web. The rule tweak, which is expected to pass, would go into effect by late summer or early fall at the latest, still in time for the 2012 general election. Other stations in smaller markets around the country would have up to two years to do so after the rule change goes into effect.
benton.org/node/119620 | Los Angeles Times
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RADIO POLITICAL ADS
[SOURCE: MediaPost, AUTHOR: Erik Sass]
Total radio advertising revenues will grow 3.5% in 2012, according to BIA/Kelsey’s “Investing In Radio Market Report,” thanks, in large part, to intensive political advertising. BIA/Kelsey also expects strong continued growth in radio’s online revenues. In 2012 BIA/Kelsey see total “over-the-air” local radio station revenues reaching just under $14.6 billion. If accurate, this forecast would be a welcome return to growth after a distinctly mediocre 2011. Total “over-the-air” local radio station revenues barely grew from 2010-2011, edging up 0.4% to $14.1 billion last year. Looking ahead, it predicts total over-the-air revenues will reach $15.2 billion in 2013, $15.8 billion in 2014, $16.3 billion in 2015, and $17 billion in 2016. Radio’s total online revenues increased 15.1% from 2010-2011, reaching $439 million, according to BIA/Kelsey, and the analysts predict they’ll grow another 15% in 2012, to $505 million. They see radio’s online revenues reaching $767 million by 2016, suggesting a cumulative annual growth rate of 11% per year from 2013-2016.
benton.org/node/119636 | MediaPost
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CONTENT

FORMER MPAA STAFFER ARGUES AGAINST SOPA/PIPA
[SOURCE: Los Angeles Times, AUTHOR: Richard Verrier]
The Motion Picture Association of America's former chief technology policy officer is speaking out against anti-piracy bills that were a top priority for his former employer. Paul Brigner, who resigned from his job last month as senior vice president for the MPAA, said he has changed his tune on the much-maligned Stop Online Piracy Act (SOPA) and the Protection Intellectual Property Act (PIPA). "I firmly believe that we should not be legislating technological mandates to protect copyright -- including SOPA and Protect IP,'' Brigner said. He said that his year-long experience at the MPAA caused him to change his views on the anti-piracy bills, concluding that they would not work. "Did my position on this issue evolve over the last 12 months? I'm not ashamed to admit that it certainly did," Brigner wrote. "The more I became educated on the realities of these issues, the more I came to the realization that a mandated technical solution just isn't mutually compatible with the health of the Internet."
benton.org/node/119622 | Los Angeles Times
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LOSS OF INTERNET’S SECRET PLACES
[SOURCE: New York Times, AUTHOR: Jenna Wortham]
[Commentary] Are the golden days of Instagram over? Instagram is by no means private. Like Twitter, Instagram operates under a strict binary. Either all photos are public and accessible to anyone who follows you, or they are private and visible only to the select few you give permission to view your feed. But the service’s seeming remoteness — the app was limited to smartphone users, and there was no built-in way to copy or repost pictures — lent it a sense of privacy and intimacy, separate from the rest of our online lives. Its ability to let its users delicately toe the line between public and private gave us a little breathing room from the all-pervasiveness of Facebook, and to see it whisked away feels like a tangible loss. The sale of Instagram brings a harsh reality into focus, the realization that the secret rooms or private spaces online where we can share, chit-chat and hang out with our friends are fading. The few safe havens that do exist are quickly being encroached upon or are next on the shopping list for a company like Google, Apple or Facebook. The few proposed alternatives are still in their infancy. And it is clear that our personal data and online interactions are so valuable that they are powering the Web’s future.
benton.org/node/119652 | New York Times
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MANAGER BENCHED FOR CASTRO PRAISE
[SOURCE: Wall Street Journal, AUTHOR: Arian Campo-Flores, Cameron McWhirter]
The Miami Marlins suspended team manager Ozzie Guillen for five games following his comments praising Fidel Castro, the former president of Cuba. "The Marlins acknowledge the seriousness of the comments attributed to Guillen," the team said in a statement. "The pain and suffering caused by Fidel Castro cannot be minimized, especially in a community filled with victims of the dictatorship." The uproar was triggered by a Time magazine article that was posted online last week. "I respect Fidel Castro," Mr. Guillen was quoted as saying. "You know why? A lot of people have wanted to kill Fidel Castro for the last 60 years, but that mother f— is still here." The remarks provoked a sharp response in Miami, where the population is heavily Cuban-American and where anti-Castro sentiment, especially among the older generation of political exiles, is widespread and passionate. The city's Spanish-language radio stations were flooded with callers voicing disgust with Guillen, who was born in Venezuela. Joe Martinez, chairman of the Miami-Dade County Commission, demanded that Mr. Guillen resign. Later, Miami-Dade Mayor Carlos Gimenez issued a statement condemning the remarks, though he stopped short of calling for Guillen's resignation.
benton.org/node/119679 | Wall Street Journal
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MARLINS PUNISH POLITICAL SPEECH
[SOURCE: New York Times, AUTHOR: Editorial staff]
[Commentary] For the crime of expressing a strange support for an unpopular Communist dictator, Ozzie Guillen, the manager of the Miami Marlins, has been banished from the dugout for five games. It may be the first time that baseball has punished political speech, and it would be considered an over-the-top reaction anywhere but South Florida. Other baseball figures have been disciplined over the decades for expressing racial hatred, including Jake Powell, a Yankee outfielder, in 1938, and John Rocker, a star pitcher for the Braves, in 2000. Marge Schott, who owned the Cincinnati Reds, expressed some admiration for Adolf Hitler, but the main reason she was suspended from baseball in 1993 was for slurs against Jews and blacks. Guillen’s statements were of a different order. He told Time magazine that he “loved” and “respected” Fidel Castro, not because of Mr. Castro’s violent and destructive reign over Cuba, but because the man had survived for so long. No hatred was expressed, but that was enough to set off a firestorm in Miami, where the easily incited Cuban exile community immediately demanded his ouster.
benton.org/node/119678 | New York Times
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TELECOMMUNICATIONS

USF REFORM
[SOURCE: JSI Capital Advisors, AUTHOR: Cassandra Heyne]
Out of all of the frustrating aspects of the USF/ICC Transformation Order and FNPRM, the waiver process ranks high on the list, yet it gets less attention than issues like regression analysis and bill-and-keep. Why is it so frustrating? Well, a waiver essentially costs small companies tens of thousands of dollars to prepare and file, and there is no guarantee that the FCC will grant the requested relief. It is a very expensive and cumbersome undertaking to tell the FCC that your company is facing financial insolvency because of the FCC’s actions. Nevertheless, waiver momentum has picked up a bit over the last few weeks with new filings, letters of intent, and even support from friends in high places—Congress—for one waiver. FCC representatives have often said if a company doesn’t like the rules, it can file a waiver; but this is easier said than done. John Staurulakis, Inc. vice president John Kuykendall described the waiver process “as though the Wireline Bureau is taking an ‘I dare you’ approach to filing waivers. On one hand, the Bureau is saying that the USF/ICC Order must not be that bad since only a few carriers have sought waivers to be exempted from the reforms. On the other hand, the Bureau knows that once a company files a waiver, the petition will then be subjected to a ‘rigorous, thorough and searching review comparable to a total earnings review’ and that the bar which must be attained for the waiver to be granted is so high that few, if any, carriers can meet it.”
benton.org/node/119626 | JSI Capital Advisors
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ARE LANDLINES DOOMED
[SOURCE: CNNMoney, AUTHOR: David Goldman]
It's clear that landlines' best days are behind them. Nearly 32% of American homes are now cell phone-only households -- double the rate from 2008 and nearly triple that of 2007, according to a recent government study. Sales are plunging. Verizon's landline revenue has fallen 19% since 2007, and AT&T's is down 16.5% over same period. Still, it's unlikely that the nation's two biggest telecom giants will ditch their landline businesses entirely. Even as consumers' usage drops, both companies have growing cable TV and broadband Internet businesses that make use of the wireline infrastructure. Also, a large number of corporate clients rely on landline service. Cellular communications actually are mostly transmitted over wires, with just the cell phone-to-tower communication taking place over airwaves. Landlines also make up a surprisingly large chunk of the telecom giants' sales, even as their overall volume declines. Last year, landline services accounted for 47% of AT&T's revenue and 37% of Verizon's sales. That's not to say the telecom giants are bullish on landlines' future. Both companies are exploring the possibility of shedding much of their landline business.
benton.org/node/119592 | CNNMoney
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GOVERNMENT & COMMUNICATIONS

HOW DEMOCRACIES CLAMPED DOWN ON NET
[SOURCE: Boston Globe, AUTHOR: Joshua Kurlantzick, Elizabeth Leader]
Electoral democracies do not normally clamp down on the Internet simply to prevent dissent, the way autocratic regimes like China or Myanmar do (though in Thailand’s case, that is part of the rationale). They more often crack down to fight terrorism, protect national security, and combat offensive and hateful content. But the result of these clampdowns can be severe, with online writers or bloggers being arrested — and, compared to openly repressive regimes such as China or North Korea, their effects may be more insidious. Where these countries have a history of supporting free speech and freedom of the press, the crackdown on the Web as it emerges as our newest and most vibrant public square represents a significant step backward. In some cases, as in Turkey, clampdowns on freedom on the Web may portend greater clampdowns on all types of freedom of the press and expression. As the Internet becomes the predominant way people publish and share news and information, censorship threatens the innovation that has been a hallmark of these electoral democracies. And, perhaps most disturbing, the crackdowns mean that even as democracies try to insist that authoritarian governments lower their firewalls and honor free expression, they are losing any moral authority on the issue by abandoning that ideal themselves.
benton.org/node/119590 | Boston Globe
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