June 19, 2012 (Initiatives Show Obama Knows How to Work With Businesses)
BENTON'S COMMUNICATIONS-RELATED HEADLINES for TUESDAY, JUNE 19, 2012
The House Commerce Committee begins consideration of the Internet's Multistakeholder Governance Model today http://benton.org/calendar/2012-06-19/
INTERNET/BROADBAND
Broadband Initiatives Show Obama Knows How to Work With Businesses - analysis
The ITU WCIT And Internet Freedom - analysis
Sens Snowe and Warner call for cybersecurity compromise
Broadband contract at center of state dispute
WIRELESS/SPECTRUM
Frequency-Hopping Radio Wastes Less Spectrum
Google, Apple Tighten Grip on Smartphone Market
Verizon: irrational outcomes - analysis [links to web]
OWNERSHIP
Facebook Acquires Facial Recognition Technology Company Face.com For Nearly $60 Million
PRIVACY
Consumer groups urge Facebook to ban ads to kids
Facebook’s $10 million privacy payout: why you get nothing - analysis
TELEVISION/RADIO
Study: Most Cord-Cutters May Be OTA 'Opt-Ins'
New Hits Needed; Apply to NPR [links to web]
ELECTIONS AND MEDIA
Time Warner Cable posts its political file online, so why the fuss, NAB? - analysis
Cristina Saralegui endorses President Obama [links to web]
STORIES FROM ABROAD
Chinese operators hope to standardize a segmented Internet
EU telecom operators ready to talk M&A [links to web]
Ofcom opposed to media ownership limits
MORE ONLINE
10 unsung fathers of technology [links to web]
INTERNET/BROADBAND
OBAMA, BROADBAND AND BUSINESS
[SOURCE: Minority Media and Telecommunications Council, AUTHOR: David Honig]
[Commentary] For all the carping from political foes about President Obama’s supposed disdain for the business community, some recent White House initiatives designed to boost broadband suggest the President has a pretty good idea about how to work with American companies. With an Executive Order on June 14, the President took aim at a critical roadblock to broadband deployment by telling government agencies to open the door to installation of critical infrastructure on properties controlled or owned by the federal government. He said better processes could cut costs by up to 90 percent and help the private sector accelerate the delivery of high-speed connectivity across the country. The move probably won’t be featured on network news shows, daily newspapers, or online news sites, but it’s exactly the sort of thing that helps businesses succeed. Think about it. Every additional broadband line or cell tower that gets put down on government land [or on a building] means more orders for suppliers and helps broadband service providers reach more customers. All it takes is more efficiency by government. Instead of boosting their bottom line through layoffs and other cost-cutting measures, companies assisted by this Executive Order can now grow their businesses and create jobs at a faster pace. It’s really economic stimulus, without additional cost to the Treasury or haggling with Congress.
benton.org/node/126157 | Minority Media and Telecommunications Council
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ITU AND INTERNET FREEDOM
[SOURCE: Public Knowledge, AUTHOR: Harold Feld]
[Commentary] Very few people ever heard of the International Telecommunications Union (ITU) until recently – and with good reason. For more than 100 years, the ITU managed quite nicely serving as the forum for countries and telecom carriers to coordinate insanely-technical-mind-numbingly-boring-but-really-really-important stuff related to making the phone network work internationally, distributing satellite slots, and trying to harmonize what frequencies countries allocate to what services. But now the ITU has suddenly become very interesting. Why? Because the ITU members will hold a rare meeting -- the World Conference on International Communications (WCIT) – where the 193 member countries will vote on whether to amend the current ITU rules ("ITRs") that set the framework for all this extremely important boringness. Unclear for now – especially in the pre-game – is whether and how the WCIT represents a potential threat to freedom of expression online. Even without the concern that the ITU will somehow “take over the Internet,” certain WCIT proposals advanced by a number of regimes that engage in Internet censorship threaten the future of free expression online. These proposals, from the Russian Federation and several Arab states, would for the first time explicitly embrace the concept that governments have a right to control online communications and disrupt Internet access services. This would reverse the trend of the last few years increasingly finding that such actions violate fundamental human rights – a valuable tool in trying to pressure repressive regimes to stop using such tactics.
benton.org/node/126152 | Public Knowledge
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CYBERSECURITY COMPROMISE?
[SOURCE: The Hill, AUTHOR: Brendan Sasso]
Sens Olympia Snowe (R-Maine) and Mark Warner (D-VA) urged the Senate to find a compromise solution for cybersecurity legislation. In a letter to Senate Majority Leader Harry Reid (D-NV) and Minority Leader Mitch McConnell (R-KY), Sens Snowe and Warner said there is "tremendous potential" for the Senate to find a solution for securing critical infrastructure systems that "incentivizes private sector participation and collaboration." The letter seems to be a nod towards a draft compromise proposal from Sens. Sheldon Whitehouse (D-RI) and Jon Kyl (R-AZ). The endorsement from Sens Snowe and Warner for an approach that incentivizes critical infrastructure standards seems to add momentum to the Kyl-Whitehouse compromise efforts. The senators urged Sens Reid and McConnell to bring up the legislation in July and to allow amendments on the floor from any senator.
benton.org/node/126169 | Hill, The
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CONNECTED NATION
[SOURCE: Tampa Bay Times, AUTHOR: Mary Ellen Klas]
In 2009, with more than a quarter of all Floridians without broadband access to the Internet at home, state officials lined up to get some of the $7 billion in federal stimulus money to finance state-based programs to increase access. Enter Connected Nation, a little-known but well-connected Washington-based company. It won the Florida contract to use $2.5 million to map the broadband gaps for use by policymakers and telecommunications companies. A year later, when the state won a second grant for $6.3 million to extend the broadband efforts, Connected Nation, a nonprofit company, believed it had signed up to be part of a public-private partnership with the state that entitled the firm to a no-bid shot at that money too. But the Department of Management Services, the state agency that housed the project, disagreed. The DMS said the grant requires it to use some of the money to pay for three more years of broadband mapping and the rest to expand broadband access in libraries and schools. The DMS hired eight contract employees to handle administration and provide services, paying them between $72,000 and $140,000 a year until the grant ends in 2014, and defended it as an efficient use of state funds. That began a bitter feud between Connected Nation and the DMS, an agency with a lengthy history of distrust among state budget leaders. In an audacious display of lobbying clout, Connected Nation got the Legislature to force the DMS off the contract and steer the second grant to the firm.
benton.org/node/126163 | Tampa Bay Times
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WIRELESS/SPECTRUM
COGNITIVE RADIO
[SOURCE: Technology Review, AUTHOR: David Talbot]
With a rising tide of smart-phone data threatening to drown the airwaves, a White House advisory panel is poised to suggest that wireless carriers and research labs ramp up efforts to use computing to far more efficiently tap spectrum. This will require, among other things, so-called "cognitive" radios, which sense unused radio bands and can intelligently switch heavy data loads between different frequencies without any interruption. A New Jersey startup has come out with the fastest cognitive radio yet. It works on the widest possible range of spectrum, and is part of a crop of improved technologies that are crucial to bringing the technology to market and avert network overload. The gadget in question, called CogRadio, and made by Radio Technology Systems of Ocean Grove, New Jersey, can switch at fast-enough rates to be imperceptible for, say, a video viewer; as well as in sufficient quantities that any research done on it, or software written for it, will be applicable in future real-world commercial devices.
benton.org/node/126155 | Technology Review
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SMARTPHONE MARKET
[SOURCE: Wall Street Journal, AUTHOR: Jessica Vascellaro, Amir Efrati]
Apple and Google have brought mobile giants Nokia and Research In Motion to their knees and captured more than 80% of the world's smartphone market. Now they are going after the rest. Apple is marching into new markets—most recently U.S. prepaid mobile phones—to continue the growth of its iPhone and iPad devices and iOS software. At the same time, Apple is developing software, such as mapping, that it once obtained from Google to make its devices stand out and to control some features more tightly. Google is shifting gears with its Android software to exert greater control over its destiny. In the past, Google relied on hardware manufacturers to build Android devices and on carriers and other retailers to sell them to consumers. Today, Google is partly adopting Apple's integrated model by manufacturing some devices on its own and it plans to sell several devices directly with big marketing campaigns. What's behind these moves? Apple and Google see bigger gains ahead.
benton.org/node/126175 | Wall Street Journal
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OWNERSHIP
FACEBOOK ACQUISITION
[SOURCE: Wall Street Journal, AUTHOR: Mike Isaac]
After rumors of a deal have swirled for weeks, Facebook has officially acquired facial recognition technology company Face.com. It’s a complete acquisition, which means both talent and technology will now become Facebook’s in the deal. Though the exact terms of the deal were not disclosed, other outlets have reported the price in the neighborhood of $100 million. However, I’m hearing from two sources familiar with the terms of the deal that Face.com actually sold for a significantly lower amount, approximately $55 to $60 million in cash and stock (though it is unclear if this price is with or without an earnout included).
benton.org/node/126174 | Wall Street Journal
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PRIVACY
OPPOSITION TO FACEBOOK PLAN
[SOURCE: Washington Post, AUTHOR: Cecilia Kang]
Consumer and child safety advocates pressed Facebook to beef up safety and privacy efforts if it goes forward with plans to allow children under 13 to use the social networking site. In a letter to Facebook chief executive Mark Zuckerberg, the groups said any space for preteen users should be free of advertising and supervised by parents. The consumer advocacy groups, which include Consumers Union, the Center for Digital Democracy, World Privacy Forum and Consumer Federation of America, said any collection of personal information shouldn’t be used by marketers to target ads at preteens based on the interests they display on Facebook. “The company’s business model relies, at its very core, on data collection, ad targeting, and viral marketing, and many of its practices have generated public and government privacy concerns,” the groups said in their letter to Zuckerberg.
benton.org/node/126172 | Washington Post | NYTimes | LATimes | The Hill | see press release
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FACEBOOK PRIVACY SETTLEMENT
[SOURCE: paidContent.org, AUTHOR: Jeff John Roberts]
The technology industry is trapped in a cycle of privacy breaches and class action lawsuits that does nothing for the average internet user. The new Facebook settlement is just the latest example. If you missed it, Facebook says it will pay $10 million to compensate users who were turned into product pitchmen as a result of “Sponsored Stories” ads that treat ‘Likes’ as endorsements (see how one user unwittingly endorsed a jumbo tub of lubricant). None of this money, however, will go to Facebook users.
Instead, the payout will perpetuate a symbiotic relationship between tech companies and their critics that works like this: Step 1) Facebook/Google/etc. break a privacy law. Step 2) Critics blow whistle, lawyers sue for millions. Step 3) Company pays millions to critics and lawyers, nothing to you. Step 4) Wash, rinse, repeat.
benton.org/node/126164 | paidContent.org
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TELEVISION/RADIO
CORD CUTTERS AND OVER-THE-AIR
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
About 21 million homes rely on over-the-air TV, according to the latest data from GfK Media's (Knowledge Networks) Home Technology Monitor report. That is 17.8% of all TV homes, compared with a consistent 14%-15% over-the-air-only percentage for each year of the study since 2008, according to GfK. Those broadcast-only homes continue to skew lower-income and minority, but also younger households, the study found. And although cord-cutting has been popularly tied to migration from pay TV to online video viewing, GfK media researcher David Tice, in a blog about the data, confesses up front to be a cord-cutter skeptic, at least to the argument that the flight is from pay TV video to online video. He says the research shows that over 70% of those who have cancelled pay TV service said it was due to cost-cutting, with cord-cutting because of online alternatives cited by less than 20%. Tice is not saying that online video options are not an important part of the equation, but said their data does not support suggesting it is a primary driver of cord-cutting.
benton.org/node/126166 | Broadcasting&Cable | GfK Media
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ELECTIONS AND MEDIA
POLITICAL AD FILES
[SOURCE: Sunlight Foundation, AUTHOR: Keenan Steiner]
If posting already-public information on political ad spending is so damaging to broadcasters, as the National Association of Broadcasters argues, then why has one of the country's biggest cable providers been doing it since 2010? Back then, Time Warner Cable created an online portal to search information regarding political ads sold on its system. Initially the portal served only the east coast, but has since provided data nationwide since 2011, according to a Time Warner spokesman. The ad buy records are available as downloadable PDFs. Current law requires TV stations to keep political ad purchase orders on file at their stations — a rule that goes for broadcasters and cable networks alike.
benton.org/node/126161 | Sunlight Foundation
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STORIES FROM ABROAD
SEGMENTING THE INTERNET
[SOURCE: IDG News Service, AUTHOR: Mikael Ricknäs]
A technology draft written by employees at China Mobile and China Telecom and submitted to the Internet Engineering Task Force describes how the Internet could be split into several parts using the Domain Name System and in the process give countries more control over their own segment of the network. The DNS is one of the key building blocks of the Internet. Its most important task is translating IP (Internet Protocol) addresses to host names, which is done by a distributed system based on one unique root that is used all over the world. The technology is developed by the IETF, on whose website the Chinese "DNS Extension for Autonomous Internet" draft is available for viewing. Today, China blocks Internet access to some foreign websites. The goal outlined by the new document is to make it easier and cheaper for countries to create independent root DNS servers and realize Internet autonomy. Today, that is both costly and technically difficult, according to the draft.
benton.org/node/126150 | IDG News Service
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OFCOM AND MEDIA OWNERSHIP LIMITS
[SOURCE: Financial Times, AUTHOR: Ben Fenton]
Ofcom will not recommend setting absolute limits on newspaper or media ownership. But the UK broadcasting regulator will say that it should conduct regular reviews of plurality every four or five years which could include an assessment of whether individual organizations have too great a share of news. Ofcom said that defining what constituted sufficient plurality, that is the diversity of voices delivering news and current affairs, would be a matter either for parliament to decide itself or to delegate to an “appropriate body.”
benton.org/node/126147 | Financial Times
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