August 2012

Public Interest Groups Prepare To Review TV Political Ad Files

Public interest groups are practically salivating that starting August 2, television stations will have to begin posting online their political disclosure files containing information about who is spending what in the 2012 election. And they're organizing to take full advantage of the more easily-available information.

Since Citizens United, groups like Free Press have been apoplectic about the onslaught of Super PACs flooding the airwaves during the lead-up to the November election, pushing political spending to new records. Now, with 95 days before the country heads to the polls, advocates for more transparency in political spending are taking some comfort in the FCC's new rule, which takes effect on Aug. 2. But don't get too excited. The files that will be available will be in PDF form, meaning it will take a lot of work to make some real sense of the spending. Plus, for starters, the FCC is only requiring the four network TV affiliates in the top 50 markets to post. That means no files for Hispanic stations, which in markets such as Los Angeles and Phoenix, the Spanish-language newscast is the top-rated newscast in the U.S. And ads placed prior to Aug. 2, don't have to be posted for another six months.

Online Public Inspection File Interface Now Available

Starting August 2, all full-power television broadcasters will begin to upload new public inspection file documents to the Federal Communications Commission’s online public inspection file site, where the public will be able to access them.

The interface for the site has been developed to vastly improve the accessibility of stations’ public files and to minimize the burden on broadcasters in providing them. The new site and interface implement the decision in the FCC’s recent Report & Order requiring television broadcast stations to post their public inspection files online in a central, Commission-hosted database.

Except for the political file, broadcasters will upload public file documents that are generated on and after August 2, but they will have six months after August 2 to upload public file documents that were in their public file prior to August 2. In the case of the political file, only broadcasters affiliated with the top four national TV networks in the top 50 television markets (Designated Market Areas or DMAs) are required to upload their political files, and only public file documents generated on and after August 2 need be uploaded. Those affiliated stations are not required to upload any political file documents generated prior to August 2. All other stations will, for now, maintain their political files at their stations. These stations will begin uploading their political files to the Commission’s online site on July 1, 2014. A list of the elements of the public inspection file may be found in the text at the site, along with brief explanations of each. Please note that there are a few exceptions to the uploading obligation, such as emails and letters from the public and certain documents related to Commission investigations.

Prepaid Cellphones Are Cheaper. Why Aren’t They Popular?

Prepaid phone plans, where you pay the full price for a cellphone and then pay lower monthly rates without a contract, seem to offer what most budget-conscious people want. So why haven’t they really caught on?

The bait that reels most people into more expensive contracts is the subsidized price of a phone, said Tero Kuittinen, an independent analyst and a vice president of Alekstra, a company that helps customers manage their cellphone bills. “Right now, consumers don’t do the math, and they have a lot of resistance to paying $500 to $600 upfront, and they’d rather pay $100 upfront and then overspend,” he said. “That psychology has worked for hundreds of years, and it’s still working.” There are less obvious reasons, too. Another factor is that carriers aren’t marketing prepaid plans as heavily because they want more customers on contract plans. Finally, until recently, prepaid phone companies haven’t offered handsets that are as compelling as the ones you can get with a contract. Only in the last few months did the iPhone and some big Android phones become available through prepaid phone companies.

Corporation for Public Broadcasting Announces a $1.5 Million Grant to NPR

The Corporation for Public Broadcasting (CPB) announced its intention to award a $1.5 million grant to National Public Radio to launch a major on-air and digital journalism initiative to increase the number of journalists from a diverse pool of candidates and help expand public media’s service to increasingly diverse communities.

CPB announced the grant at the UNITY 2012 Convention, a gathering of media professionals from across the country. The two-year grant from CPB will help NPR create a diverse team of journalists that will build a digital service for stories that connect to Americans today – whatever their age, race, economic background or geographic location. The initiative will be guided by a senior online journalist who will oversee the creation and curation of original content each day. The reporting team will provide deep coverage of local communities around the country, the issues that affect them and the people of many backgrounds and opinions who make these communities unique. The new grant builds on the success of the CPB/Knight Foundation-funded Project Argo that helped NPR serve new broadcast and online audiences by focusing on a defined content subject.

The original content created by this new initiative will be optimized for all platforms. It will reach an audience that is younger and more racially and ethnically diverse than traditional radio listeners, through websites, on tablets, and through an array of mobile devices. In addition, the team will work closely with NPR editors to incorporate the stories into NPR’s national news programs, infusing new perspectives and sources throughout the network’s daily coverage.

Boston Mayor Pitches Attorneys General on Opposing Verizon/SpectrumCo

In a letter this week to Attorney General Eric Holder, Boston Mayor Thomas Menino said the city believes that Verizon's proposed purchase of wireless spectrum from cable operators and associated cross-marketing agreements are anticompetitive, not in the public interest and unlawful.

In a separate letter, he asked Massachusetts attorney general Martha Coakley to oppose the transaction as well. Boston already filed comments opposing the deal, but in the letter to AG Holder emphasizes that Mayor Menino is concerned the deal will mean that Verizon and Comcast will "never compete" in Boston, "thereby effectively depriving our community, citizens, small businesses, schools, hospitals and educational facilities the benefits of video and broadband competition." To allow the deal, said Menino, would be to leave Boston "permanently on the wrong side of the digital divide."

CEA Calls NCTA Encryption Proposal 'Utterly Insufficient'

The Consumer Electronics Association said the cable industry's proposal for the six biggest MSOs to let IP-based devices access encrypted programming via low-cost adapters or licensed technology is fundamentally flawed.

Last month, the National Cable & Telecommunications Association floated a proposal with the Federal Communications Commission to let third-party devices access encrypted basic-tier programming. Cable operators want the agency to lift the 18-year-old ban on encrypting basic cable as they look to cut theft of service by broadband-only subscribers. Under the NCTA proposal, the six largest U.S. operators would provide either an IP-based adapter for decrypting TV signals for no charge to subscribers or would license the relevant content-security technology to manufacturers. The trade group suggested the commitments last for three years and recommended that other cable operators beyond the six biggest MSOs also be permitted to encrypt the basic tier. But the consumer-electronics industry wants much firmer concessions before it's willing to let MSOs fully flip the crypto switch. The complained that the NCTA's proposal does not define the devices or interfaces; that the MSOs' licensing and certification commitments are "lacking or insufficient"; and that the three-year sunset makes the options unworkable for competitive device entry.

Sen Rand Paul Asserting Himself on Tech

Sen. Rand Paul (R-KY), a Tea Party favorite, appears to be trying to play a more assertive role in tech issues on Capitol Hill, indicating during a speech that his free-market views on most issues extend to tech as well.

Speaking before the conservative Heritage Foundation think tank, Sen Paul touched on many hot-button tech issues including cybersecurity, Internet regulation, privacy and piracy. He indicated that while he may support the importance of for example protecting intellectual property rights, he opposes heavy-handed government intervention. The speech was billed as a discussion of Internet freedom, but Rand discussed a wide range of issues including cybersecurity, which the Senate debated this week. He said he does not favor legislation that would impose a lot of government mandates, saying passing a law won't necessary prevent every cyber threat. "We may pass an immense cybersecurity bill, and something may still happen," Sen Paul said. However, he said he would support providing companies with an antitrust exemption so they can share information and also would back allowing government agencies to share some cyber-security information with the private sector.

Guess what? Bandwidth is getting cheaper

IP transit costs are down, which means it costs less to stream bits from Netflix, Google and any other web traffic across the ocean and major land masses.

According to new data from TeleGeography, the prices are not only dropping, but are doing so more rapidly from the second quarter in 2011 to the second quarter in 2012. Telegeography doesn’t explain why this occurring, but a rash of new investment and new transit routes coming online in the last year are probably helping drive down costs. For example the cost of a 10GigE port in London has dropped 57 percent to $3.13 per Mbps while the same ports in New York City have dropped 50 percent year over year to $3.50 per megabit. And Telegeography says that in few places in the world does transit cost more than $100 per megabit.

Google Fiber and the community broadband ripple

[Commentary] Community-owned broadband gets a significant boost with the Google fiber announcement, even though Kansas City doesn’t own the network. The trick is understanding which Google tactics can be replicated by community projects and how to use gigabit envy to get municipal networks built.

Pay TV stops growing: Top 4 services all lost video users in Q2

With satellite carrier DirecTV reporting its first-ever net quarterly loss of subscribers, the Big Four pay TV services collectively lost 407,000 U.S. video customers in Q2. This was not offset by gains of 322,000 net video users reported by telco services AT&T U-Verse and Verizon FiOS.