June 2012

UN doesn't want to take over Internet, does want to help telcos profit

The head of the International Telecommunications Union, an agency of the United Nations, explicitly denied that the group is interested in taking over the Internet. But his remarks make clear that the body is quite interested in helping domestic telecommunications operators make boatloads of cash by controlling the flows of content to individual countries.

Secretary-General Hamadoun Touré said the ITU recognizes all of its member states impose various types of restrictions on freedom of speech. The list includes copyright violations, pornography, defamation and political speech, among others. “Such restrictions are permitted by article 34 of the ITU’s Constitution, which provides that Member States reserve the right to cut off, in accordance with their national law, any private telecommunications which may appear dangerous to the security of the State, or contrary to its laws, to public order or to decency,” he added. “I do not see how WCIT could set barriers to the free flow of information,” Touré concluded. In other words, countries can essentially do whatever they want online—and they already do.

But he goes on to say:

“As the industry has pointed out, data volumes are increasing much faster than the infrastructure needed to carry it, and there is currently a risk of an infrastructure investment shortfall. The revised [International Telecommunications Regulations, to be discussed at the December WCIT meeting in Dubai] should therefore help to encourage broadband roll-out and investment. They should emphasize the importance of liberalization and privatization, and should recognize the role of the private sector and market-based solutions. At the same time as data volumes are increasing, unit prices are declining, so total revenues for telecommunications operators are potentially at risk. As a result, some have said that there is a need to address the current disconnect between sources of revenue and sources of costs, and to decide upon the most appropriate way to do so.”

In other words, because revenues (read: profits) are “at risk,” there needs to be a new set of international regulations that will help shore up big telcos.

Parliament should say NO to ACTA, says International Trade Committee

Parliament should say “No” to the Anti-Countefeiting Trade Agreement (ACTA), said the International Trade Committee in a vote on June 21. Nineteen MEPs voted against ACTA, and twelve in favor, with no abstentions. "I welcome the result of today's vote. I am pleased that the committee has acknowledged the problems I have identified in my report and has followed my recommendation to reject ACTA," said David Martin (S and D, UK), after the vote results were announced.

UK Press regulation ideas published

The chairman of the UK industry body that funds existing press regulation said that a revamped Press Complaints Commission should be able to levy fines of up to £1 million on errant publishers. The proposal by Lord Black of Brentwood was one of a score of submissions released in the final days of the Leveson inquiry into press standards and behavior. They came from groups and individuals all suggesting ways to replace the now-suspended PCC in the wake of the phone hacking scandal. The submissions differed mostly on the degree to which outside influence – including statutory measures passed by parliament – is needed to ensure participation in a new system or guarantee investigative and punitive functions of the new regulator.

Apple fined for misleading iPad adverts

Apple has been fined after admitting it misled customers over the compatibility of its latest iPad with high-speed 4G networks in Australia. Federal Court Justice Mordecai Bromberg said that the A$2.25 million ($2.29 million) fine – only the fifth fine over A$1 million under new consumer laws – underlined the “seriousness of a company the size of Apple refusing to change its advertising.”

“Apple’s admitted contraventions were not trivial,” Judge Bromberg wrote in his ruling. “Apple does not seek to deny the deliberateness of its conduct and there are no facts before me which seek to excuse or explain the conduct, other than that the conduct occurred at the behest of Apple’s parent company.” The ruling came about after Australia’s consumer and competition watchdog claimed that the US tech group broke the country’s consumer law by advertising that the new iPad can run on 4G mobile networks using a sim card, which is not the case.

Warner's Broadband Amendment Passes

The Senate passed on a voice vote an amendment to the broadband section of the farm bill that changes the way broadband grants and loans are distributed by the Rural Utilities Service.

The amendment sets up a competitive bidding process for broadband loans and grants, and eliminates the rolling application process that was previously in place. It requires a minimum level of grants for areas that are currently not reached by any broadband service, sets minimum broadband speeds for funded projects, encourages new entrants to the rural broadband sector and requires RUS loan recipients and grantees to map the reach of their broadband projects. Additionally, the amendment directs the Department of Agriculture to devote 1% of RUS appropriated funds to oversight and administration. The provisions were sponsored by Sen. Mark Warner (D-VA) with a bipartisan group of co-sponsors including Jeanne Shaheen (D-NH), Mike Crapo (R-ID), and the ailing Mark Kirk (R-IL). Farm bill sponsor Sen. Debbie Stabenow (D-MI) backed the change.

Pols Ramp Up Online Behavioral Targeted Ads for 2012

Like a lot of things in Washington, policy doesn't always match up with practice. On the one hand, lawmakers and regulators ponder what policies should be adopted around privacy and targeted advertising. At the same time, they're busy adopting online behavioral targeted advertising strategies for political campaigns.

The ability to target individual voters online, whether to raise funds or communicate with interested and prospective voters about specific issues, is hard to resist -- especially in what most predict will be a very close election. "Online, real-time targeting is a very big deal in this election," said John Aristotle Phillips, CEO of Aristotle, during a Politico panel. Panelists spoke about coming to grips with manipulating more data than ever before, both online and offline, to increase donations and engagement. "Data is the bedrock," said Sean Spicer, communications director for the Republican National Committee. "There is a constant struggle to get the right message out."

Subcommittee on Antitrust, Competition Policy and Consumer Rights
Senate Judiciary Committee
June 21, 2012
1:30 pm
http://www.judiciary.senate.gov/hearings/hearing.cfm?id=8731563568b2b734...

Witness List

Lucian Grainge, CBE
Chairman and Chief Executive Officer
Universal Music Group
Santa Monica, CA

Roger C. Faxon
Chief Executive Officer
EMI Group
New York, NY

Irving L. Azoff
Executive Chairman and Chairman of the Board
Live Nation Entertainment, Inc.
Chairman and Chief Executive Officer
Front Line Management Group
Los Angeles, CA

Edgar Bronfman, Jr.
Director
Warner Music Group Corp.
New York, NY

Martin Mills
Founder and Chairman
Beggars Group Ltd
London, UK

Gigi Sohn
President and Chief Executive Officer
Public Knowledge
Washington, DC



UMG-EMI Merger: Deja Vu All Over Again

[Commentary] I will be testifying against the merger of Universal Music Group (UMG) and EMI Music. A merger between the 1st and 4th largest record companies, in our opinion, would result in a “super-major” label with a 41% market share that would be able to dictate the future of new digital music services. The combined entity could deny licenses to new services, charge them enormous licensing rates, or even take an equity stake in the service. This would be bad for consumers, who benefit from lower prices and more choice in a world with more new services and fewer middlemen. And as our friends at the Future of Music Coalition have so artfully said, these new services also benefit both independent music labels and unsigned artists. Sound familiar? Indeed, the merger looks a lot like the failed merger of AT&T and T-Mobile.

Indiana’s Landis Joins Federal-State Joint Board on Jurisdictional Separations

The Federal Communications Commission has appointed the Honorable Larry S. Landis, Commissioner, Indiana Utility Regulatory Commission, to serve on the Federal-State Joint Board on Jurisdictional Separations. This appointment fills the position recently vacated by the Honorable Vendean V. Vafiades, Commissioner, Maine Public Utilities Commission.

House Commerce Committee Advances Resolution on Internet Governance

By voice vote, the House Commerce Committee advanced five measures and approved the committee’s Semi-Annual Committee Activity Report.

H.Con.Res. 127 expresses the sense of Congress that the Internet should remain free from international regulation and that the United States should continue its commitment to the current “multi-stakeholder” model of governance. This concurrent resolution introduced by Commerce, Manufacturing, and Trade Subcommittee Chairman Mary Bono Mack (R-CA) is cosponsored by Full Committee Chairman Upton, Ranking Member Henry A. Waxman (D-CA), Communications and Technology Subcommittee Chairman Greg Walden (R-OR), and Ranking Member Anna Eshoo (D-CA) and would reject international proposals, expected to be discussed at the December World Conference on International Telecommunications (WCIT) in Dubai, to treat the Internet like an old-fashioned telephone service.