June 2012

SPECTRUM/WIRELESS

AT&T WATCHING FCC’S DECISION ON VERIZON
[SOURCE: National Journal, AUTHOR: Juliana Gruenwald]
AT&T's chief said that his company is watching to see if federal regulators approve Verizon's bid to buy spectrum from a group of cable firms so that the industry has clearer guidance on what types of deals are acceptable. "We're all watching the Verizon deal very closely, because we think that will provide a good indication in terms of what the FCC's position is on spectrum aggregation and how much spectrum can be owned and so forth," AT&T Chairman and CEO Randall Stephenson said during a discussion on mobile technologies at the Brookings Institution.
Stephenson also indicated his firm may have more interest in the Verizon transaction than just wanting clearer guidance from the Federal Communications Commission on what deals will pass muster. Stephenson said AT&T would make a bid for spectrum in the 700-megahertz band that Verizon said it would sell if regulators approve its bid to buy more desirable airwaves from the cable firms. Verizon's "spectrum pairs perfectly with ours," Stephenson said. "If we were to have access to that spectrum, we could put it to work in 60 days." Stephenson argued that access to more spectrum is an issue all wireless carriers face and was one of the reasons why his firm sought to buy T-Mobile. Stephenson said the federal government needs to be more aggressive in freeing up more spectrum. He added that proposals for wireless operators to share spectrum with federal agencies does not address the industry's immediate problems, saying demand for access to wireless broadband will out strip supply by next year. He said his firm is already running out of spectrum in some markets, but declined to name which ones. "Our problem is not a long-haul problem, it's a now problem," he said.
benton.org/node/125631 | National Journal | Fierce
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NAF RESPONDS TO AT&T
[SOURCE: New America Foundation, AUTHOR: Michael Calabrese]
We agree with AT&T's CEO, Randall Stephenson, that it is critical for the economy to "put precious spectrum to work." As he suggests, too much spectrum capacity lies fallow. However, while AT&T's focus is on re-purposing spectrum for exclusive use by wireless providers, there is a very limited supply of prime spectrum that can be quickly re-sold or cleared for auction.
The nation needs an additional policy push to open unused and lightly used spectrum for shared use on a more expedited basis. For example, the military and other federal agencies control by far the largest amount of unused spectrum capacity. Although these federal systems cannot quickly or easily move off of the spectrum, technology today permits shared use with the private sector. In fact, this is already happening on a limited basis, but could be expanded to substantially increase the amount of spectrum available for wireless communications while also spurring new technological innovation.
While Stephenson's suggestions for ending spectrum speculation and encouraging secondary markets are good ones, the long-term demand for high-speed mobile broadband will not be met unless the nation begins today to open federal and other unused spectrum capacity for shared use to the greatest extent possible."
benton.org/node/125629 | New America Foundation
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VERIZON FAMILY PLANS
[SOURCE: New York Times, AUTHOR: Brian Chen]
In a first for the wireless industry, Verizon Wireless said that it was introducing plans this month that would allow customers to pay monthly fees to share data, voice minutes and text messages across multiple devices, like smartphones, tablets and notebooks. The plans include unlimited voice and text messages, but they put limits on the amount of data that customers can use. Verizon’s move is a direct reaction to the trends facing the wireless industry: Customers are using fewer voice minutes and text messages, while mobile data use is on the rise. Here’s how it would work: You choose the devices you want on an account, like your iPhone, your daughter’s cellphone and your son’s iPad. Then you would pick the amount of data you want, ranging from 1 gigabyte to 10 gigabytes. Each device incurs a monthly fee, in addition to the monthly fee for the shared plan. At first glance, that sounds like a bargain, because the typical iPhone user spends upward of $90 a month for an individual plan. But Verizon had previously outlined to investors how these plans would help it make more money. Fran Shammo, Verizon’s chief financial officer, said at a recent investors’ conference that Verizon believed that because its fourth-generation LTE network was faster, people would use it for more heavy data consumption, like streaming video, which would encourage them to eventually buy the more expensive data plans.
benton.org/node/125627 | New York Times | Wall Street Journal | USAToday | ComputerWorld
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VERIZON’S RAW DEAL
[SOURCE: C-Net|News.com, AUTHOR: Roger Cheng]
[Commentary] I would be fine with the changes if "Share Everything" was just one of many options, but it's not. The new shared data plans, which includes a fee for unlimited voice and text, and a set amount of data, as well as another separate fee for each device, has become the new status quo. If you're a new customer or want to upgrade to a new phone, you'll have to switch to one of these plans starting June 28. Some people may be okay with getting unlimited access to voice and text messages, but I'm not one of them. I suspect I'm not alone. At a time when people are using data services more, which power alternative text and calling apps, they are looking to lean on voice and text messages less. That's particularly the case as many folks move to the faster 4G LTE network, which consumes data even faster. But under the change, customers will have to give up their old grandfathered unlimited data plans right as people use more data than ever. It's a classic case of a carrier giving you more of what you don't need, and taking away what you do -- all for a higher price. The plans are clearly geared towards families -- particularly ones in which a few members don't use as much data -- at the expense of individuals.
benton.org/node/125626 | C-Net|News.com
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VERIZON WIRELESS PLANS
[SOURCE: Public Knowledge, AUTHOR: Michael Weinberg]
[Commentary] Verizon Wireless announced its new pricing plans for mobile phones and data. If you mostly use your phone for data, this is bad news. Let’s look at the numbers. Imagine that you want a new smartphone plan. You use it for phone calls and for text messaging, but most of your use is mobile data. You may not need to imagine too hard, since that is how consumer behavior has been evolving for a few years. A year ago, you probably would have chosen the 450 voice minute option ($39.99), the 250 text message option ($4.99), and the unlimited data option ($30). That’s $75 for more talk and text than you need (but the least you could buy) plus unlimited data. Fast forward to today. With Verizon’s price structure today, you would probably choose the 450 voice minute option again ($39.99), the 1000 text message bucket ($10 - Verizon eliminated its lower buckets so you have to pay for more messages even if you do not need them), and 2GB of data ($30 - sorry, Verizon eliminated unlimited data in 2011). That’s $80 for more talk and text than you need plus 2GB of data.
benton.org/node/125682 | Public Knowledge
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INTERNET/BROADBAND

USF REFORM
[SOURCE: Politico, AUTHOR: Brooks Boliek]
Adak Island lies in the Bering Sea 1,200 miles from Anchorage and neither cyclone winds, tsunamis nor unexploded artillery from its days as a World War II base prevents its 326 or so residents from expecting a high-speed Internet connection to the rest of the world. That service may end soon for some because of a fight with federal regulators over subsidies. The cost to bring mobile, high-speed Internet service to this tiny speck in the Aleutian Islands is turning into something of a test of the Federal Communications Commission’s vision of a mobile, broadband-based communications system that telephone users subsidize for the needy and hard-to-reach corners of America. “We are blessed to live in a country that promises universal communications access to all people living within its borders, no matter how remote or isolated they may be,” said Larry Mayes, CEO of Windy City Cellular, a cellphone company serving Adak Island. While Adak is about as far from the mainland as you can get and still remain in the United States, the researchers at the U.S. Geological Survey volcano laboratory, the workers at the Marine Exchange and the subsistence farmers and fishermen who live there are serviced by two cellphone companies. However, greater Adak Island and its lone policeman won’t be serviced much longer unless the FCC reassesses how much it reimburses Mayes’s company under a $4.5 billion subsidy program the commission revamped last fall to help spread broadband nationwide. The federal subsidy for Windy City Cellular was reduced in January to $22,356 from the $136,344 that the company received each month last year to contain costs — part of the rationale was that wireless service doesn’t have the same costs as traditional wire-based phone and Internet services, according to the commission.
benton.org/node/125685 | Politico
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CABLE NET LIMITS PROBE
[SOURCE: Wall Street Journal, AUTHOR: Thomas Catan, Amy Schatz]
The Justice Department is conducting a wide-ranging antitrust investigation into whether cable companies are acting improperly to quash nascent competition from online video. Justice Department officials have spoken to several online video providers, including Netflix and Hulu. Investigators have also questioned Comcast, Time Warner Cable, and other cable companies about issues such as setting data caps, limits to the amount of data a subscriber can download each month. The Justice Department probe highlights how the shifts in decades-old patterns of television viewing are shaking the tightly regulated industry. Decisions in Washington could play a role in determining how quickly the new video services spread and what form they take.
benton.org/node/125684 | Wall Street Journal
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DURBIN HOPEFUL FOR ONLINE SALES TAX BILL
[SOURCE: National Journal, AUTHOR: Juliana Gruenwald]
Senate Majority Whip Dick Durbin (D-IL) is still hopeful for action this year on his measure to require online retailers to collect sales taxes from their out-of-state customers. He has authored legislation with Sens. Mike Enzi (R-WY) and Lamar Alexander (R-TN) that would close a loophole left by a 1992 Supreme Court decision. Sen Durbin noted that former Gov Haley Barbour (R-MS) is lobbying on the issue for the Retail Industry Leaders Association, which represents big box stores with brick-and-click operations such as Target and Wal-Mart. RILA along with other retail groups such as the National Retail Federation, Consumer Electronics Association and the International Council of Shopping Centers are backing the Enzi-Durbin bill. Senate Majority Leader Harry Reid (D-NV) has indicated that the bill needs more Republican support before he'll bring it to the Senate floor, Sen Durbin said. He cited some progress in attracting GOP support, which will be key to overcoming a likely Republican filibuster. Durbin said he would still like to have the backing of at least a dozen Republicans. So far, only four Republicans in addition to Enzi have signed on as co-sponsors of the Enzi-Durbin bill. The bill, however, does have the backing of many GOP governors, who have voiced concern about losses in sales tax revenues given the growth in e-commerce.
benton.org/node/125574 | National Journal
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REID PROMISES CYBERSECURITY BILL ACTION
[SOURCE: The Hill, AUTHOR: Pete Kasperowicz]
Senate Majority Leader Harry Reid (D-NV) said the Senate would soon move to consider a cybersecurity bill, and challenged Republicans to work with Democrats so something can be passed. "I put everyone on notice: We are going to move to this bill at the earliest possible date," Sen Reid said on the Senate floor. "For that to happen, more of my Republicans need to start taking this threat seriously. "It's time for them to participate productively in this conversation, instead of just criticizing the current approach," he said. Sen Reid said a bill from Senate Homeland Security and Governmental Affairs Committee Chairman Joe Lieberman (I-Conn.) and ranking member Susan Collins (R-Maine) is an "excellent piece of legislation" that has been endorsed by many national-security experts. The bill would give the Department of Homeland Security the power to set mandatory standards for critical infrastructure systems, which supporters say is needed to help avoid cyberattacks.
benton.org/node/125615 | Hill, The
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GRAHAM WORKING ON CYBERSECURITY COMPROMISE
[SOURCE: The Hill, AUTHOR: Brendan Sasso]
Sen. Lindsey Graham (R-SC) revealed that he is working to chart a middle path on cybersecurity legislation. Sen Graham is working with Sens. Sheldon Whitehouse (D-RI) and Jon Kyl (R-AZ) to develop a compromise proposal on the issue. But he emphasized that the senators have yet to finalize any legislation. The move puts Sen Graham in the middle of a debate between two of his closest friends in the Senate: Sens. John McCain (R-AZ) and Joe Lieberman (I-CT). The three lawmakers, sometimes called the "Three Amigos," usually see eye-to-eye on national security issues. But Sen McCain is the leading opponent of Lieberman's cybersecurity bill, which Lieberman has said is his top legislative priority before he retires at the end of the year.
benton.org/node/125612 | Hill, The
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FCC SEEKS COMMENT ON MODEL DESIGN AND DATA INPUTS FOR PHASE II OF THE CONNECT AMERICA FUND
[SOURCE: Federal Communications Commission, AUTHOR: Public Notice]
This Public Notice is the next step of an open, deliberative process to develop the final model design and inputs for the Connect America Fund. The Notice identifies several significant threshold model design decisions and seeks comment on specific proposals for the design of the model and data inputs to be used. This is not an exhaustive list of such issues, but represents the next step in the open, deliberative process to determine the design of the model the Bureau will ultimately adopt. The Bureau also seeks comment on commenters’ identification of additional issues that need to be developed in the record of this proceeding.
The Federal Communications Commission’s Wireline Competition Bureau anticipates that, in addition to comments in response to this Public Notice, there will be additional opportunities for further public input before a final model is adopted and support levels are established. The further opportunities may include additional comment periods or workshop discussions, and may address in further detail matters raised in this Public Notice or questions not reached by this Public Notice, such as the appropriate prices to assign to specific cost inputs to the model. The Bureau may modify model design and inputs, including potentially combining elements of multiple models into a new model, in response to input it receives from the public.
Comments due July 9, 2012; Reply comments are due July 23, 2012 [WC Docket Nos. 10-90, 05-337]
benton.org/node/125605 | Federal Communications Commission
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ITU AND FREEDOM
[SOURCE: Public Knowledge, AUTHOR: Harold Feld]
[Commentary] The sad truth is that those who oppose network neutrality and claim to oppose the International Telecommunication Union are hypocrites of the worst kind. Why would I say that? What makes me say folks like Rep Lee Terry (R-NE), and other staunch opponents of network neutrality are hypocrites when they claim to oppose the ITU? Because -- as anyone who is paying the least attention to the actual proposals at the ITU will tell you -- all the proposals in front of the ITU to date are ANTI-network neutrality proposals. So obviously, if you hate network neutrality as much as Rep Terry says he does, you must totally love the ITU or be a flaming hypocrite, right? Anyone trained in formal logic recognizes the fallacy here. Someone can oppose the ITU exercising any jurisdiction over internet traffic while still supporting a specific policy proposed at the ITU. So Rep. Terry can oppose ITU jurisdiction over Internet traffic management even if he likes the fact that -- if certain proposals were adopted -- it produces the result he likes with regard to carriers prioritizing one website over another or one application over another regardless of actual user preferences. So why do I accuse Rep. Terry and Rep. Walden of hypocrisy for opposing ITU jurisdiction over Internet traffic while still pushing for the same anti-network neutrality outcome under consideration at the ITU? Glad you asked! As it happened, Rep. Terry made just such a flawed and unsupported assertion in the opposite direction. That is to say, Rep. Terry asserted that "there is a certain level of hypocrisy" for organizations that supported the FCC's net neutrality rules (such as PK) to oppose ITU "regulation of the internet."
benton.org/node/125681 | Public Knowledge
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GAINESVILLE GIGABIT NETWORK
[SOURCE: GigaOm, AUTHOR: Stacey Higginbotham]
Residents of a small section of Gainesville (FL) will get a gigabit network thanks to the GigU project that wants to deliver fiber to the home to areas around U.S. colleges and universities. GRUCom, a multi-service utility owned by the City of Gainesville, said it would work with the GigU people and the University of Florida to build a network in an area known as Innovation Square. The project is an interesting one because it shows the promise and the limitations of what the GigU guys are trying to accomplish. Residents and business in a roughly 12-block area will get the possibility of gigabit networks and prices for the service will start at $99 for a 50 Mbps connection. Those wanting more can contact GRU for personalized pricing plans. The university will offer labs and students faster connections on campus, but that gigabit connection isn’t going to be in most people’s price range. However, for a limited area the infrastructure will be there for when the costs of a gig drop.
benton.org/node/125603 | GigaOm
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LAND GRAB AT THE EDGE OF THE INTERNET
[SOURCE: Wired, AUTHOR: Robert McMillan]
Behind the scenes, there’s a big change happening on internet. It’s something that’s mostly hidden from web surfers, but it’s becoming critical to big internet companies such as Google and Netflix. They’re moving servers — usually free of charge — next to the service providers’ networking gear so that people trying to watch a popular YouTube video don’t have to send traffic across the network to servers back to the website’s data center. It can save companies like Google and Comcast lots of money, and it speeds things up for consumers. According to Craig Labovitz, founder of network analysis company Deepfield Networks, it’s also changing the way that internet companies work. “The business they’re in isn’t delivering bits anymore. It’s delivering content,” he says. And while not everyone agrees, Labovitz says there’s a bit of a land rush going on as more companies move to get their content closer to consumers. The prime real estate here is in nondescript box-like structures all over the world, which serve as a link between internet service providers, websites, and consumers connecting to the web.
benton.org/node/125585 | Wired
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ELECTIONS AND MEDIA

NAB TAKES FIGHT TO OMB
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
The National Association of Broadcasters has asked the Office of Management and Budget to reject the information-collection requirements of the Federal Communications Commission's new online public file order, particularly the requirement that stations provide the commission with their political files, including spot prices, so they can be posted on an FCC web site for everyone to see. NAB wants OMB to make the FCC test its paperwork burden theories before applying them to broadcasters. OMB's 30-day comment period on its Paperwork Reduction Act (PRA) review of the new FCC rules began June 11, and NAB wasted no time taking aim at them. Among the PRA requirements is to "evaluate the accuracy of [an] agency's estimate of the burden of the proposed collection of information" and insure that it is not unnecessarily burdensome or duplicative. NAB says the FCC was way off in its estimate and that the burden is duplicative. In its comments, NAB points out that OMB has said that an information-collection requirement will be rejected "unless it is clearly justified and '[t]he burden on the public [is] completely accounted for and minimized to the extent practicable...'"
benton.org/node/125656 | Broadcasting&Cable
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TEXTING POLITICAL DONATIONS
[SOURCE: Wall Street Journal, AUTHOR: Amy Schatz]
Giving money to politicians is about to get a little easier. The Federal Election Commission unanimously approved a proposal to allow campaigns to accept donations via text message, helping candidates solicit spontaneous donations from supporters. Many campaigns already allow supporters to donate via smartphones, but those contributions are routed over the Internet and require contact and billing information. The new proposal will allow campaign supporters to quickly text small-dollar donations that would be deducted from their monthly cellphone bills. Under the plan that got the commission's nod on Monday, an aggregating company would process the donations and make sure no phone number sends a campaign more than $50. Federal election rules set a $50 limit on anonymous campaign donations. The aggregator would forward between 50% and 70% of the donation to the campaign within 10 days to comply with federal campaign-finance rules. The rest of the money would be split between the aggregator and wireless carriers as processing fees.
benton.org/node/125624 | Wall Street Journal | The Hill
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LIST POLITICAL ADS’ SPONSORS ON WEB
[SOURCE: Politico, AUTHOR: Newton Minow, Henry Geller]
[Commentary] A House appropriations subcommittee voted last week to prohibit the Federal Communications Commission from doing its job. The FCC, by law, has long required broadcasters to maintain at the station public files about all political ads sold — including information about the names of sponsors or names of executives or board of directors of sponsoring entities, the amount paid and the time slot. The FCC, finally recognizing the 21st century, ordered in late April that major TV stations in large markets had to make this information available on the Internet — so the public has ready access. Perhaps the House subcommittee members have not read the Supreme Court’s opinion in Citizens United. “With the advent of the Internet,” Justice Anthony Kennedy wrote, “prompt disclosure of expenditures can provide stockholders and citizens with the information needed to hold corporations and elected officials accountable for their positions and supporters. … Citizens can see whether elected officials are ‘in the pocket’ of so-called money interests … and disclosure permits citizens and shareholders to react to the speech of corporate entities in a proper way. This transparency enables the electorate to make informed decisions and give proper weight to different speakers and messages.” Justice Kennedy was right about the Internet — and the House subcommittee is wrong.
[Newton N. Minow is a former chairman of the Federal Communications Commission. Henry Geller is a former general counsel of the FCC]
benton.org/node/125590 | Politico
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OWNERSHIP

SIRIUS OPPOSES LIBERTY’S REQUEST
[SOURCE: Wall Street Journal, AUTHOR: John Jannarone]
Sirius XM Radio urged the Federal Communications Commission to reject the latest application by shareholder Liberty Media for approval to take effective control of the satellite-radio operator. Liberty, the media investment vehicle controlled by John Malone, asked the FCC on May 31 to reconsider its earlier rejection of Liberty's initial request in March. Liberty said on May 31 that it "has determined that it should assert control of Sirius and will take action to do so." It said it intended to convert half the preferred stock it owns in Sirius into common shares, giving it a total of 32% of the common stock, including shares it has bought or agreed to buy. Liberty also said that "as soon as practicable" it intended to seek a majority of the board by nominating candidates for election. In the June 11 filing, Sirius said Liberty's most recent application "attempts to create the impression that Liberty Media has firmly committed itself to take control of Sirius XM. However, it provides no specific proposal on how or when Liberty Media intends to do so." Sirius said Liberty's petition "offers nothing more than a refined menu of options for how Liberty Media might assume control of Sirius." Sirius argued that Liberty "still has not stated definitively that it will convert its" preferred stock, initiate a proxy contest or buy more stock in the open market.
benton.org/node/125623 | Wall Street Journal
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TELEVISION

RESPONSE TO VIEWABILITY RULE
[SOURCE: The Hill, AUTHOR: Brendan Sasso]
The Federal Communications Commission (FCC) voted late Monday to extend its "viewability rule" for just six months, allowing the requirement to expire in December. The rule requires cable operators to provide both analog and digital feeds of certain must-carry local broadcast stations. The vote was unanimous, although FCC Commissioner Mignon Clyburn said her decision was not easy. She said it is of the "utmost importance" that viewers have access to local programming, but noted that consumers can buy low-cost converter boxes. Michael Powell, CEO of the National Cable and Telecommunications Association, applauded the order, which he said will allow cable companies to devote more resources to deploying broadband Internet. Matthew Polka, CEO of the American Cable Association, said cable companies will be able to use the additional capacity to "offer improved services, such as better broadband and more diverse programming options." But the vote was a blow to broadcasters, especially small and minority-owned stations. They had urged the FCC to extend the rule for three years.
benton.org/node/125610 | Hill, The | Read the order | Commissioner Clyburn | Commissioner McDowell | Commissioner Pai | B&C
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CONTENT

ONLINE RATINGS
[SOURCE: MediaPost, AUTHOR: Wayne Friedman]
Looking to bridge the gap for kids when it comes to online TV program viewing, seven broadcasting networks say they plan to offer additional TV content ratings for parents. ABC, CBS, Fox, NBC, TeleFutura, Telemundo and Univision say an expanded TV ratings system for parents can be used when children access broadcast television programs on the Internet. This is for all full-length entertainment programs that stream on the networks' Web sites. TV ratings will appear at the beginning of full-length video programs and also in the online programming descriptions. Network sites will also include or link to ratings system information. No details were released of what those ratings might look like. The networks say they will each determine their own ratings systems to start Dec. 1.
Federal Communications Commission Chairman Julius Genachowski said, “I applaud the networks’ commitment to empower parents. With our rapidly changing media marketplace, it is vital parents have tools to help them make informed choices.” FCC Commissioner Rosenworcel said, “We are fast moving to a world where our children’s video viewing is not limited to the television screen—but is on any screen, at any time. The way we watch is clearly changing. But what is not changing is the need to provide parents with simple and honest means to monitor and manage their children’s viewing. Today’s announcement is a first step in the right direction. I applaud ABC, CBS, FOX, NBC, TeleFutura, Telemundo, and Univision for making this commitment.”
"The networks' initiative recognizes that content increasingly is being distributed across multiple platforms, and that parents should have access to consistent information to help guide what their children should watch -- no matter where it appears," said Urban League President Marc Morial. "If the online rating system is similar to the current television rating system, then this move is a distinction without difference. PTC has proven time and time again that the TV content ratings system is a facade, citing inaccurate and inconsistent ratings designated by the networks themselves with no accountability," said Parents Television Council President Tim Winter.
benton.org/node/125599 | MediaPost | FCC Chairman Genachowski | FCC Commissioner Rosenworcel | B&C | B&C – PTC
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DIGITAL DRAG
[SOURCE: Financial Times, AUTHOR: Emily Steel]
Consumers’ reluctance to pay as much for digital media as they do for physical products, such as news, books and music, will drag on the global media and entertainment industry’s growth over the next five years, according to a new industry forecast. The media and entertainment industry is likely to grow at a 5.7 per cent compound annual rate over the next five years, slower than the 6.6 per cent annual growth rate expected in nominal GDP over the same period, according to PwC’ annual outlook for the sector. Behind the discrepancy is the industry’s transition to lower-cost digital products that are generally cheaper for consumers than traditional physical media offerings, such as news, books, music and video games. PwC said this reflects the “end of the digital beginning” for media and entertainment companies, where digital media and entertainment become more central to business and people’s lives, driven particularly by tablets and smart phone devices.
benton.org/node/125619 | Financial Times
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WHAT WILL E-BOOK MARKET LOOK LIKE IN 2016
[SOURCE: paidContent.org, AUTHOR: Laura Hazard Owen]
New data from Pricewaterhouse Coopers’ Global Entertainment and Media Outlook projects that e-books will make up 50 percent of the U.S. trade book market by 2016. What will happen in the rest of the world during that time? PwC gave paidContent an exclusive look at their e-book data, and here are some of their predictions.
Total book spending in the US will be flat
North American e-book spending will skyrocket, but Europe will be slower
Japan, South Korea and China will lead the way on growth in Asia Pacific
benton.org/node/125593 | paidContent.org
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PRIVACY

STREET VIEW INVESTIGATION
[SOURCE: New York Times, AUTHOR: Edward Wyatt]
Google released a trove of documents related to a federal investigation of its Street View mapping project. Although the project was intended to photograph the world’s streets, from 2007 to 2010 Google gathered unencrypted Internet data from wireless networks, including the content of private communications, as its specially equipped cars passed through neighborhoods. Among the documents released are sworn declarations by nine people — their names and titles redacted but most of whom appear to be Google engineers — who said they were not aware of the data collection either because it was not part of their job or they did not review the project documentation, even when it was provided to them. Also, Google confirmed that the Information Commissioner’s Office in Britain had reopened its investigation of the Street View project and had asked the company for additional information about the data it collected there.
benton.org/node/125678 | New York Times | FT | Politico | WSJ
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SPOKEO
[SOURCE: New York Times, AUTHOR: Edward Wyatt]
The Federal Trade Commission assessed an $800,000 penalty against Spokeo, a data collector that the FTC said violated federal law by compiling and selling people’s personal information for use by potential employers in screening job applicants. The action is the FTC’s first case addressing the sale of Internet and social media data for use in employment screening. Spokeo, of Pasadena (CA), agreed to settle the civil charges without admitting that they were true. The trade commission said that Spokeo violated the Fair Credit Reporting Act by marketing its consumer profiles without making sure that they would be used for legal purposes, failing to ensure their accuracy and neglecting to tell consumers of its own responsibilities under federal law. The FTC also charged that Spokeo created fake endorsements of its service and posted those comments on news and technology Web sites and blogs. The commission said the comments were made up by Spokeo’s own employees.
benton.org/node/125673 | New York Times | FTC
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ADVERTISING

COMCAST ADS
[SOURCE: AdWeek, AUTHOR: Katy Bachman]
Comcast needs to slow down its advertising claims that its Xfinity Internet service is the "fastest in the nation," per a recommendation from the National Advertising Division, the ad industry's self-regulatory unit. The NAD, part of the Council of Better Business Bureaus, examined the ad claims based on a complaint by Verizon, which also offers Internet services in some of the same markets as Comcast. Comcast's unqualified ad claims were based on a 2011 PC Magazine study—but the cable giant failed to disclose that Comcast shared its fastest speed rank with two other cable companies, Cox and Charter. While Comcast had the fastest download speeds, Cox had the highest upload speeds. Comcast's ads also failed to mention that according to a Federal Communications Commission report in markets where Comcast and FiOS were both available, FiOS actually had the faster speeds. The NAD recommended that Comcast discontinue claiming itself to be the "fastest Internet service provider in the nation." In print and Internet advertising, the NAD recommended that Comcast clearly and conspicuously disclose the PC Magazine report in immediate proximity to the triggering claims. In video ads, the NAB recommended the PC Magazine reference be in a voiceover. Comcast could still call itself the "fastest" if it noted that it applied in markets where FiOS was not available.
benton.org/node/125606 | AdWeek
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FACEBOOK ADS
[SOURCE: Wall Street Journal, AUTHOR: Peter Kafka]
Here’s Facebook’s retort to people who say Facebook ads don’t work: A study that says people who see brand messages on the site spend more money on those brands, right away. The catch: The study focuses on “earned media” — the messages that Facebook users share with each other, not the ones brands pay Facebook to promote. That’s not entirely good news for Facebook, because it may lead to more moves like the one that General Motors announced before the social network’s IPO. The new data released by the social network company was released Tuesday together with ComScore in a report that also shows how Facebook ads have helped companies including Starbucks and Target. Facebook said its research shows that 70% of ad campaigns will get advertisers a return three times what they put in, and in nearly half of all campaigns, Facebook ads get companies $5 for every $1. ComScore said that users who saw paid ads for an unnamed retail company were 16% more likely than those who didn't to make a purchase from the company's locations and made online purchases 56% more frequently. The report also showed people who "Like" Target were more likely to buy from the company 21% more frequently, and people who saw unpaid marketing messages from Starbucks made purchases from the company every four weeks 38% more often than those who didn't.
benton.org/node/125622 | Wall Street Journal | Los Angeles Times | GigaOm
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JOURNALISM

NEWSPAPER LAYOFFS
[SOURCE: New York Times, AUTHOR: Campbell Robertson]
It is one thing to find out that the print edition of the paper will disappear four days a week, as the owners of The Times-Picayune announced in May. But it is another thing to find out that so many familiar names — people that the city went through a flood with — may be gone, too. In New Orleans and across the state of Alabama, as part of a basic restructuring of the news business at four papers owned by Advance Publications, scores of employees walked into one-on-one meetings and walked out 10 minutes later with severance packages. They included advertising employees, copy editors, press operators, crime reporters, photographers and graphic artists. The Web site al.com, the online site for The Birmingham News, The Huntsville Times and The Mobile Press-Register, reported that 400 employees in Alabama would “experience an employment loss.” The Birmingham News had a newsroom of 102 going into June 12; by the end of the day 61 were gone. The Times-Picayune laid off more than 200 people, or nearly a third of its overall staff.
benton.org/node/125675 | New York Times
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GOVERNMENT & COMMUNICATIONS

LEAK INVESTIGATION
[SOURCE: The Hill, AUTHOR: Jeremy Herb]
Attorney General Eric Holder defended the Justice Department’s ability to be independent as it investigates national-security leaks in the face of Republican calls for a special counsel. AG Holder said at a Senate Judiciary Committee hearing that the two US attorneys he appointed will “follow leads wherever they are, whether in the executive branch or other component of government." He also said that Justice Department investigators have interviewed both him and FBI Director Robert Mueller in its probe of national security leaks from the White House. The leaks have centered around a drone target "kill list" and a cyberattack on Iran.
benton.org/node/125617 | Hill, The | The Hill - questioned
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LOBBYING
[SOURCE: Politico, AUTHOR: Dave Levinthal]
Lobbyists and congressional staffers haunt the same corridors of power, but they don’t always speak the same language. As they attempt to communicate, deliberate and share information, Congress and K Street are often wildly disconnected, with technology and age exacerbating matters, according to the results of the largest survey of its kind in US history. Capitol Hill staffers don’t want to be bothered by all of the face-to-face meetings lobbyists set up and insist make a big difference for their clients. Staffers would rather connect by email but ironically find themselves stifled by increasingly antiquated BlackBerry devices. And even when lobbyists and congressional staff successfully connect to chew over government initiatives and legislation, they routinely arrive with markedly different frames of reference, from the publications and briefing materials they read to the cable news they watch. The survey, slated to be released in a 116-page document entitled The Congressional Communications Report, is a joint project by The George Washington University’s Graduate School of Political Management, the Original U.S. Congress Handbook, Lobbyists.info and the Virginia-based market research firm ORI.
benton.org/node/125592 | Politico
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US-INDIA JOINT COMMISSION TOUTS OPEN GOVERNMENT PLATFORM
[SOURCE: nextgov, AUTHOR: Andrew Lapin]
Government representatives from the United States and India had high praise for the two countries’ Open Government Platform partnership at June 11’s second joint commission meeting on science and technology cooperation between the nations. “It has truly been awesome and it has truly been inspiring, and those are words I don’t use very often,” White House Deputy Chief Technology Officer Chris Vein said during the introductory remarks. Assistant Secretary of State Robert Blake was on hand to praise the collaboration as well, calling it “a wonderful example of how our two great democracies have leveraged our two countries’ cooperation on innovation and on technology to advance democracy and to advance the lives of our people.” Over the course of the 45-minute presentation at the State Department other details emerged about the project beyond the assertion that it was great.
benton.org/node/125597 | nextgov
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HUAWEI, ZTE PROBED
[SOURCE: Wall Street Journal, AUTHOR: Siobhan Gorman]
Lawmakers investigating spying threats from China are pressing two Chinese telecommunications firms active in US markets for details about their relationship with the Chinese government and with US companies. In letters sent to Huawei Technologies and ZTE, the top lawmakers on the House intelligence committee outlined concerns about the companies' ties with the Chinese government, including the role of a "party committee" at Huawei. The lawmakers also asked about Huawei's relationships with five U.S. consulting firms and requested an expansive collection of documents, including the contracts between the firms and Huawei as well as the results of the firms' consulting work for Huawei. Those firms include International Business Machines, Accenture, and PricewaterhouseCoopers. Additional questions address work the two companies have done in Iran and their funding arrangements with the Chinese government. The requests, from Reps. Mike Rogers (R-MI) and Dutch Ruppersberger (D-MD), provide an initial review of topics under investigation by the committee, which launched a probe late last year into possible threats posed to US national security by Chinese telecommunications firms seeking to do business in the US.
benton.org/node/125670 | Wall Street Journal
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POLICYMAKERS

SEN DIANNE FEINSTEIN
[SOURCE: Politico, AUTHOR: Michelle Quinn]
Sen. Dianne Feinstein (D-CA) taps out messages on a BlackBerry, reads books on her iPad and is well-known in Washington for detailed command of policies from fracking to farming to patent law. Yet in her home state, there are some rumblings in tech circles about whether Sen Feinstein truly is one of them. Techies complain she’s of a different generation, “out of touch,” “unaware” of the intricacies of tech policy — and they point out she doesn’t even send her own tweets. Seems harsh, but some in the tech sector are still sore at Sen Feinstein for siding with the entertainment sector on anti-piracy legislation, which ended in January with a Hill retreat in the face of Internet protests. It leaves Feinstein in an unusual position in the Senate, where senior members are often devoted to a home-state industry -- think Chuck Grassley (R-Iowa) on corn, Bill Nelson (D-FL) on NASA or Jay Rockefeller (D-WV) on coal. And the industry repays in kind. So as Internet companies and startups are finally taking an interest in Washington, they are figuring out who their go-to lawmakers are on the Hill — and Sen Feinstein isn’t one of them.
benton.org/node/125571 | Politico
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