July 2012

New data pricing from Verizon, AT&T may complicate family life

Arguments around U.S. family dinner tables may soon go from who talked too much on the phone this month to who used up the family's Internet service. Thanks to new metered pricing plans for Internet access unveiled by top U.S. cellular providers Verizon Wireless and AT&T Inc families will be able to share a single data allowance for multiple devices. A drawback is the higher price of data in these plans. The companies say the new plans are designed to help consumers save money and simplify their lives. Consumer advocates worry that they will instead make managing the family wireless plan more complicated than ever. "I think what you'll see is a set of consumers that overbuy and you'll see consumers that don't buy enough and get charged overage," said John Breyault, National Consumers League vice president of public policy. Breyault added that consumers "are not that great at estimating their usage."

Apple says Samsung patent royalty demands unfair

Apple said Samsung is demanding from the iPhone maker a far higher patent royalty than Apple pays to other companies, at a rate the South Korean company has never sought from any other licensee.

The information was contained in portions of an Apple legal brief freshly unsealed in U.S. court, and provides more detail about each side's negotiating position in the run-up to a high stakes trial set to begin next week. In a separate filing, Samsung contended that its royalty demands are consistent with industry norms. Also, a U.S. magistrate in San Jose, California, ruled that Samsung wrongly let employees delete emails that could have helped Apple pursue its $2.53 billion lawsuit over disputed patents. The magistrate, Judge Paul Grewal, also said that a jury may hold it against the South Korean company.

Smartphones Fuel American Tower Rise As Networks Speed Up

American Tower and Crown Castle International, whose shares have reached records this month, are in a sweet spot: handling a surge in cellular traffic as wireless companies upgrade for a new generation of bandwidth-hungry smartphones and tablets.

As more wireless carriers convert to faster long-term evolution technology, known as LTE, worldwide mobile data traffic will soar 18-fold by 2016, according to Cisco Systems. At the end of last year, 54 service providers offered LTE, according to researcher Maravedis, and about 224 more plan upgrades to the technology. By 2016, 469 million subscribers worldwide could be using LTE networks. That new traffic translates into soaring growth prospects for tower operators, the companies that lease space to the networks for the growing panoply of antennas they require to move all that data around.

The National Broadband Map Is Updated

The National Telecommunications and Information Administration again updated the National Broadband Map, the unprecedented interactive map that shows what high-speed Internet service is available in the United States. The map is powered by a new set of data from 1,865 broadband providers nationwide – more than 20 million records – and displays where broadband is available, the name of the provider, the technology used to provide the service, and the maximum advertised speeds of the service.

US Cloud Providers Cite Obstacles to Growth Abroad

Industry representatives warned the Judiciary Intellectual Property, Competition, and the Internet Subcommittee that barriers being imposed by foreign governments could stifle the growth of U.S. cloud computing providers.

U.S. companies including Amazon and Google are moving aggressively to offer cloud services around the world, which involves the use of hosted services via the Internet. But they worry that new policies imposed by some foreign governments could hamper the ability of U.S providers to market their services abroad. Cloud computing has been touted as a way to provide its users with access to more computer power at lower costs by relying on a third-party to buy and operate expensive computer networks. "Countries around the world desperately hope to copy the model of technology-driven economic growth that powers the US economy," said Business Software Alliance President and CEO Robert Holleyman in his written testimony. "Far too often they would do so by throwing up protectionist barriers aimed to hurt international cloud providers and by adopting policies that would chop the cloud into country-sized pieces." "Strong U.S. leadership is needed to combat trade practices that other countries are using to block foreign competitors," Daniel Castro, a senior analyst with the Information Technology and Innovation Foundation, said.

Political ad spending so far: $648 million

The election is a little more than three months away, and so far more than half a billion has been spent on TV advertising. From now until the election, another $2.5 billion will be spent, saturating markets such as Los Angeles and Cleveland, Ohio, where spending is already past the $20 million point. That's according to a report from Wells Fargo Securities, which says that total television spending on political this year has hit $647.7 million through July 8. Three quarters of that, $481 million, has been spent on local television.

The presidential campaigns contributed the largest amount to spot TV, $194.9 million, with ballot measures No. 2 at $120 million. Wells Fargo estimates that spot TV spending will total $2.65 billion by election's end, up 15.9 percent from 2010, which did not have a presidential election. Network TV will get $98 million, up 16 percent from 2010. Some of that will come during the Olympics over the next two weeks, where President Barack Obama's campaign has made several large buys, including the opening ceremonies. And $442 million will go to cable, most of that local spending on MSOs such as Comcast and Time Warner Cable. That's up 23 percent from 2010.

Changing Policies Changes Practices: Patient Access and Input to Their Health Record

One of the promises of health information technology is to provide patients easier access to their health information.

This is a focus of the Office of the National Coordinator for Health Information Technology’s consumer e-health efforts and the Centers for Medicare & Medicaid Services’ meaningful use regulations. But this isn’t a new policy for the Department of Health and Human Services. In fact, we have ensured that patients have had a right to access their health information since 2002. The policy regarding patients and their medical records has been shifting over the years. To help folks understand the evolving policy developments and to understand some of the open discussions, ONC has posted a policy issue brief that focuses on patient access to their health information.

TV News Business Isn’t Limited to Just TV Anymore

The latest RTDNA/Hofstra University Survey continues to show that the TV news business isn't limited to TV anymore. But the numbers also show stabilization in the reach of a TV newsroom. Still, more than three-quarters (75.5%) of stations provide local news content to one or more other media -- beyond their own station or website. The likelihood of stations being involved in running content on other media tends to go up as market size drops. In the top 50 markets, 68.3% of stations run content on other media. In markets 51+, that percentage rises to 79.0%.

The Great American Smartphone Migration: Nearly Half of Feature Phone Subscribers Who Acquired a New Device in April Switched to a Smartphone

A comScore study of first-time U.S. smartphone owners found that nearly half of feature phone subscribers who acquired a device during April 2012 switched to a smartphone, an increase of 9.5 percentage points from the previous year, as smartphone adoption continues its upward climb in the U.S.

Among this audience, 61.5 percent of consumers acquired devices running the Google Android platform, with 25.2 percent choosing Apple devices and 7.1 percent opting for Microsoft smartphones. Among those feature phone subscribers that acquired a smartphone device in the past month, 61.5 percent chose a Google Android device, while 25.2 percent acquired an Apple device. Devices operating on the Microsoft platform accounted for 7.1 percent of acquired smartphones, while RIM represented 4.8 percent. In comparison, among existing smartphone subscribers that acquired a new smartphone device in the past month, 54.2 percent chose Android devices while 33.5 percent preferred Apple devices. RIM accounted for 9.6 percent of acquired devices, while Microsoft represented 3.0 percent.

FCC Has Reformed the High-Cost Program, but Oversight and Management Could be Improved

This report examines the Federal Communications Commission’s 1) plans for repurposing the high-cost program for broadband, and 2) plans to address previously identified management challenges as it broadens the program’s scope.

The Government Accountability Office reviewed and analyzed pertinent FCC orders, associated stakeholder comments, and reports related to the Universal Service Fund (USF) and interviewed federal and industry stakeholders, as well as economists and experts. The GAO recommends that the FCC A) establish a specific data-analysis plan for carrier data to determine program effectiveness, and B) consult with the Joint Board as it examines the factors for calculating carrier support payments. FCC concurred with the recommendations.

[GAO-12-738, July 25.]