November 2012

November 15, 2012
Institute of Museum and Library Services
Washington, DC
http://www.imls.gov/national_museum_and_library_services_board_to_meet_o...

The 26th meeting of the (NMLSB). The focus of the board meeting will be the role of libraries and museums in early learning. President Obama has made early childhood learning a priority and IMLS is promoting policies, analyzing data and making grants to help integrate libraries and museums into community-wide early learning strategies. The board will hear from foundation, government, library and museum experts to help inform future IMLS activities in this area.

Speakers (in order of presentation):

  • Ralph Smith, managing director of the Campaign for Grade-Level Reading and senior vice president of the Annie E. Casey Foundation
  • Shannon Rudisill, director of the Office of Child Care in the Administration for Children and Families, U.S. Department of Health and Human Services
  • Harriet Coalter, director of the Richmond Public Library in Richmond, Virginia
  • Julia Webb Bland, CEO of the Louisiana Children’s Museum, immediate past president of the Association of Children’s Museums, and a current member of the .

IMLS anticipates that eight new NMLSB members, nominated by President Obama, will be officially appointed by the time of the board meeting:

  • Charles Benton, chairman and CEO of the Benton Foundation
  • Christie Pearson Brandau, retired state Llbrarian and adjunct professor at the School of Library and Information Management at Emporia State University
  • Bert Castro, president and CEO of the Arizona Zoological Society/Phoenix Zoo
  • Paula Gangopadhyay, chief learning officer at The Henry Ford
  • Luis Herrera, city librarian of the San Francisco Public Library
  • Dr. Eric J. Jolly, president of the Science Museum of Minnesota
  • Susana Torruella Leval, director emerita of El Museo del Barrio
  • Suzanne E. Thorin, dean of Libraries and University Librarian at Syracuse University

The meeting is open to the public. To attend, please R.S.V.P. to Elizabeth Lyons elyons@imls.gov.



November 7, 2012 (President Obama Reelected; House to GOP; Senate to Dems)

BENTON'S COMMUNICATIONS-RELATED HEADLINES for WEDNESDAY, NOVEMBER 7, 2012

Privacy and Information Overload on today’s agenda http://benton.org/calendar/2012-11-07/


ELECTIONS AND MEDIA
   Obama Wins The Election! Here’s His Technology Agenda
   From Frustrated to Nervous, Television Networks’ Moods Explain Results
   Ohio Viewers Hit By Anti-Obama TV ‘Special’ On Election Eve
   Major TV News Networks Agree To Shield Early Exit Poll Data On Election Day [links to web]
   Newspapers Lower Paywalls for Election [links to web]
   E-voting chaos: NJ voters sent to official's personal Hotmail address
   Online Voting Isn't Ready, Says Panel [links to web]
   Social Media and Voting - research
   Obama's Twitter Bid on Election Eve [links to web]
   2012: The First Digital Election - op-ed
   Can search results, online advertising, likes and follows predict an election? [links to web]
   Romney Didn't Crack Top 100 Display Ad List Until October [links to web]
   Rep Issa committee accused of making 'sham' campaign ad
   Why cable TV is the big winner in 2012 election in Illinois [links to web]
   Google co-founder Sergey Brin: "I am dreading today's elections" [links to web]
   Not Everyone Is Happy to See Political Ads End [links to web]

INTERNET/BROADBAND
   The Two Key Investments to Build Back Better Post-Sandy - op-ed
   AT&T to Unveil Upgrade Plan to Improve Outlook of Rural Business

SPECTRUM/WIRELESS
   AT&T to Pay Fine to Resolve Wireless Data Complaints - press release

TELEVISION
   Supreme Court declines to hear case about channel bundling
   More Hints of Cord Cutting Surface in Pay-TV Results [links to web]
   Cable industry seeks out Silicon Valley pizzazz [links to web]
   FCC Grants Noncommercial Waivers for Sandy Fundraising [links to web]

OWNERSHIP
   FCC appears likely to ease media-ownership rules

ADVERTISING/MARKETING
   How big data will separate haves from have-nots
   Does Mobile Display 2012 = Online Display 1999? - op-ed [links to web]
   The $20 ad campaign: small businesses find alternatives to Google AdWords [links to web]

PATENTS
   Apple Says Samsung’s Galaxy Note, Jelly Bean Infringe Patents [links to web]
   Apple loses $368 million patent verdict in Texas [links to web]

CONTNET
   Pandora Media Sues ASCAP Seeking Lower Songwriter Fees [links to web]
   Hurricane Sandy and Twitter - research [links to web]
   Social Media, Growing in Legal Circles, Find a Role in Florida Murder Case [links to web]

COMPANY NEWS
   Sprint Shedding Nextel Name After Softbank Deal [links to web]

STORIES FROM ABROAD
   Argentina Puts Pressure on Media Firm
   Amazon to win out over Apple in e-book price tussle
   Europe’s Telecoms Feel the Pain, Take It Out on Workers [links to web]
   How an Indonesian ISP took down the mighty Google for 30 minutes [links to web]

MORE ONLINE
   Broadway Box Office Takes an Estimated $8.5 Million Hurricane Hit [links to web]
   AFTRA Foundation Sets Hurricane Sandy Relief Fund for SAG-AFTRA Members [links to web]
   Code for America thinks government can be beautiful [links to web]
   Stores aren’t for selling, they are for delighting your customers [links to web]
   Smart meters not so clever about privacy, researchers find [links to web]
   Dead Phone Battery? Just Burn Something [links to web]

back to top

ELECTIONS AND MEDIA

TECHNOLOGY AGENDA
[SOURCE: TechCrunch, AUTHOR: Gregory Fernstein]
President Barack Obama has won the election! What does this mean to the future of innovation and the technology industry? Based on Obama’s record and statements released during the campaign, here’s what technologists can look forward to:
Strong support for high-skilled immigration reform
Open Government Reform
Continued support for government investment in clean technology, and the technology industry, through the Small Business Administration
Strong support for STEM Education
benton.org/node/138644 | TechCrunch
Recommend this Headline
back to top


TV COVERAGE OF ELECTION NIGHT
[SOURCE: New York Times, AUTHOR: Alessandra Stanley]
When a test is really, really hard, students sometimes can’t resist looking at the face of the class know-it-all for signs of dismay or discomfort. And on a really, really close election night, even anchors at rival networks couldn’t help sneaking a peek at the mood over at Fox News. And Fox News was the channel to watch on this election night. On most days, it presents an alternative reality to its rivals, alerting viewers to Black Panthers stalking polling stations or citing a survey that had given Mr. Romney a double-digit lead over the president he was trying to oust. But on election night, everyone had to work with the same numbers. And in the end, Fox News called the election for President Barack Obama at the same time as CNN, even though the Romney campaign and their own expert, Karl Rove, said Fox was wrong. The subsequent dispute on-screen was, as one anchor said, “awkward.” Megyn Kelly left the set and marched down a corridor, a camera in tow, to interview the channel’s number crunchers, who said that Mr. Romney’s hopes had run out.
benton.org/node/138643 | New York Times
Recommend this Headline
back to top


SINCLAIR ELECTION “SPECIAL”
[SOURCE: Talking Points Memo, AUTHOR: Eric Lach]
ABC affiliate WSYX in Columbus (OH) aired a half-hour “election special” twice on Nov 5 — first at 6:30 p.m. instead of World News with Diane Sawyer, and later at 11:30 p.m., during the slot normally held by Nightline. Rather than a side by side comparison of the two major party candidates, however, the special featured some of the most partisan criticisms of President Barack Obama, and spent relatively little time examining Republican nominee Mitt Romney. WSYX and at least one other station operated by the Sinclair Broadcast Group in the crucial swing state aired election specials, which included content prepared by their corporate parent company.
benton.org/node/138642 | Talking Points Memo
Recommend this Headline
back to top


PROBLEMS IN NEW JERSEY
[SOURCE: ars technica, AUTHOR: Timothy Lee]
Security experts warned that New Jersey's plan for e-mail-based voting was a recipe for problems, and anecdotal evidence is starting to trickle in that the system isn't working as well as organizers had hoped. One address used to request ballots was not even accepting e-mail late Tuesday morning. And in another county, an election official responded to problems with the county e-mail system by inviting voters to send ballot requests to his personal Hotmail address. The unfolding fiasco was first spotted by Buzzfeed, which notes that a number of voters have tweeted about having their e-mails to county voting officials bounce. "Oh no! email box for Essex County Clerk's box is full. No one can email in their ballots," tweeted one New Jersey voter last night. Essex County, NJ, is in the suburbs of New York and has nearly 800,000 residents. As one of the largest counties in the state, it is evidently struggling to keep up with the demand for e-mail ballots.
benton.org/node/138601 | Ars Technica | WSJ | WashPost
Recommend this Headline
back to top


SOCIAL MEDIA AND VOTING
[SOURCE: Pew Internet & American Life Project, AUTHOR: Lee Rainie]
Social media is a significant part of the process by which voters are talking about their ballot selections, especially younger voters:
22% of registered voters have let others know how they voted on a social networking site such as Facebook or Twitter.
Social media platforms have also become a notable venue for people to try to convince their friends to vote.
30% of registered voters have been encouraged to vote for Democrat Barack Obama or Republican Mitt Romney by family and friends via posts on social media such as Facebook or Twitter.
20% of registered voters have encouraged others to vote by posting on a social networking site such as Facebook or Twitter.
benton.org/node/138599 | Pew Internet & American Life Project | The Hill
Recommend this Headline
back to top


THE FIRST DIGITAL ELECTION
[SOURCE: Forbes, AUTHOR: Paul Springer, Mel Carson]
[Commentary] Whichever way this election tilts, it will ultimately be tagged the first full digital election – the first to exploit the spectrum of live, real-time digital media. The 2012 election has been characterized by 24-hour news content serviced by online comment, 360-degree analysis of candidate speeches and live TV debates that are wrapped with streams of digital vox-popping. With the election running close, it’s likely that the most memorable digital moment will not have been contrived in campaign offices, but will come from articulate social network comment. Unlike previous elections, the winning campaign message will not have been stage-managed but harnessed through open online debate.
benton.org/node/138597 | Forbes | Los Angeles Times | Inside Facebook
Recommend this Headline
back to top


ISSA SHAM AD
[SOURCE: Center for Public Integrity, AUTHOR: Rachael Marcus]
Watchdog groups are accusing a House committee that investigates wasteful government spending of apparently using taxpayer funds to produce a campaign video attacking President Barack Obama. The video was produced by House Committee on Oversight and Reform, chaired by Rep. Darrell Issa (R-CA). The one-minute video criticizes Obama for the cost of state dinners and was posted to the committee’s YouTube channel. It has made its way through Twitter and conservative blogs over the weekend. “It is so far beyond the pale. I think it is clearly an ethics violation,” said Melanie Sloan, the executive director of the government watchdog group Citizens for Responsibility and Ethics in Washington. “It is one of the most outrageous abuses of official resources I’ve ever seen.” CREW plans to file a complaint, Sloan said. When asked if taxpayer funds were used to create the video, committee spokesman Seamus Kraft said in an email that “the committee’s video presentation is fully consistent with House rules and did not incur any additional taxpayer expenditures for its production.” According to Paul Ryan, an election law and ethics attorney at the Campaign Legal Center, the video amounts to an “electioneering” campaign ad — it supports or opposes a candidate even though it doesn’t explicitly say vote for or against that candidate. It falls short only in that it wasn’t broadcast on television.
benton.org/node/138594 | Center for Public Integrity
Recommend this Headline
back to top

INTERNET/BROADBAND

BROADBAND AFTER SANDY
[SOURCE: The Huffington Post, AUTHOR: Susan Crawford]
[Commentary] What disempowered New Yorkers most wanted during the storm, in addition to safety and electricity, was a way to communicate. My suggestion: Prioritize rebooting communications infrastructure for New York City and its environs at the same time that we think seriously about water barriers and other infrastructural needs. Our communications problems boil down to two central issues: Lack of capacity and lack of a safety net.
Capacity first: If you've got dark fiber to every home and business (as in Stockholm), and cell towers covering smaller areas are everywhere they can be, calls don't drop and business transactions run smoother.
Getting fiber everywhere requires lowering the cost of capital for wholesale, independent providers who can loosen Verizon's death grip on wires in New York City.
Then we need a safety net: Many heart-wrenching stories this week illustrate the growing inequality in basic services across the city. The richest New Yorkers lead entirely separate lives from the people who work hourly jobs to provide the services that make New York City spin. Everyone needs to have an equal capacity to communicate, just as everyone needs electricity.
In a time when government services, job applications, educational opportunities and health information have all moved online, it's past time to put long-term, infrastructural policies in place that covers critical communications systems, including Internet access. Big government moves are necessary: making sure prices for Internet access are reasonable, that competitors can share the hardware belonging to incumbents, and that everyone gets the same level of open world-class Internet access. We did it for electricity. We did it for the telephone. Hurricane Sandy reminds us that we need to do it for Internet access as well.
benton.org/node/138591 | Huffington Post, The
Recommend this Headline
back to top


AT&T TO UNVEIL UPGRADE PLAN
[SOURCE: Bloomberg, AUTHOR: Scott Moritz]
AT&T plans to tell investors November 7 that it will extend high-speed Internet service to far-flung customers in an effort to boost sales in its struggling rural business. Through a combination of upgrades to the phone lines and the expansion of its long-term evolution, or LTE, wireless network, the company would be able to reach customers in rural areas with faster connections. About 23 percent of AT&T’s 52 million subscriber households can’t get broadband lines, according to John Hodulik, an analyst at UBS AG. As rural consumers switch to mobile phones for voice calls, they’re getting rid of home lines, causing AT&T to lose customers who might otherwise stick around for broadband speeds. Instead of attempting to get rid of what it has called an “underperforming asset,” the company is seeking to revitalize rural lines. The idea is to get the operation’s sales growth closer to the 6 percent rate at the rest of the company.
benton.org/node/138615 | Bloomberg
Recommend this Headline
back to top

SPECTRUM/WIRELESS

AT&T TO PAY $700,000 TO RESOLVE COMPLAINTS OF EXCESS CHARGES FOR WIRELESS DATA PLANS
[SOURCE: Federal Communications Commission, AUTHOR: Press release]
AT&T agreed to pay $700,000 as part of a consent decree to resolve complaints that the company switched certain consumers to its mandatory monthly wireless data plans even though it had promised they could retain their existing pay-as-you-go data plans. These customers are called “grandfathered subscribers.” AT&T has agreed to refund excess charges paid by individual customers, which could be as much as $25 to $30 a month, depending on data use. The transfers began occurring in November 2009, shortly after AT&T required first-time smartphone subscribers or those who upgraded their phones to enroll in monthly data plans. Consumer complaints prompted the FCC to launch an investigation last year. AT&T has also agreed to an extensive compliance plan, which includes: consumer notification, training of customer care representatives, and periodic compliance reports to the FCC. AT&T must also conduct additional searches of its records to identify improperly switched consumers and ensure appropriate refunds.
benton.org/node/138637 | Federal Communications Commission | read the consent decree | read the order | ars technica | The Hill | C|Net
Recommend this Headline
back to top

TELEVISION

SCOTUS REJECTS CABLE BUNDLING CASE
[SOURCE: Los Angeles Times, AUTHOR: Joe Flint]
The U.S. Supreme Court is in no hurry to address the issue of choice -- at least when it comes to cable television. The high court declined to hear a class-action suit against several big media companies including Comcast, News Corp. and Time Warner over how they bundle their cable channels for sale to pay-TV distributors. The Supreme Court's rejection is the latest defeat for the suit, which was brought by a group of cable and satellite TV subscribers led by Rob Brantley. In March, a panel of judges for the U.S. 9th Circuit Court of Appeals in San Francisco sided with the entertainment industry, saying that bundling does not violate antitrust laws. While a pay-TV distributor can buy individual channels from a programmer, there are usually substantial discounts offered for carrying multiple channels. The plaintiffs counter that programmers abuse their market power and harm competition by requiring distributors to sell channels in prepackaged tiers rather than on an individual, or a la carte, basis.
benton.org/node/138616 | Los Angeles Times
Recommend this Headline
back to top

OWNERSHIP

EASING MEDIA-OWNERSHIP RULES
[SOURCE: Los Angeles Times, AUTHOR: Jim Puzzanghera]
Federal regulators are poised to ease ownership restrictions on major-market media outlets in what could be a boost to some big players in the struggling newspaper industry. After two failed attempts to loosen its rules, the Federal Communications Commission is expected by the end of the year to approve a new proposal that would allow newspapers and television or radio stations in the 20 largest markets to consolidate. And unlike previous battles, there is little opposition this time to easing the so-called cross-ownership rules. A decade of Internet growth, fast-changing technologies and plunging newspaper revenues — along with the nation's focus on recovering from the Great Recession — have altered views. Few people seem to care much if newspapers and television stations hook up in the same metropolitan area. That could be a boon for a handful of firms, including Los Angeles Times parent Tribune Co., as well as a relief for the FCC, which is trying for a third time in 10 years to loosen rules that limit media consolidation. The less-contentious atmosphere stems partly from the decision of some key media companies to sever their broadcast businesses from their lower-valued newspaper units.
benton.org/node/138592 | Los Angeles Times
Recommend this Headline
back to top

ADVERTISING/MARKETING

BIG DATA
[SOURCE: InfoWorld, AUTHOR: Allen Bernard]
According to Dun & Bradstreet CIO Walt Hauck the companies that "get" big data and use it to better serve their customers will be the "haves." Those that don't might as well open a corner bookstore. "I think big data is the beginning of the 'haves' and 'have-nots',” Hauck says. "You're either going to be able to take your data, manipulate it, and understand it at scale, or you're going to follow those that do." Hauck isn't talking about the data that comes from Twitter feeds and Facebook "likes." That grabs headlines, but the real value in big data is better understanding what you already know:
Why do your customers do what they do?
What is it about your products or services that resonates with your customers?
What do your customers need, and what do they need more of?
How are you going to use what you know about your customers to do what you do better, attract new clients, open new markets and so on?
benton.org/node/138603 | InfoWorld
Recommend this Headline
back to top

STORIES FROM ABROAD

SETTLEMENT IN EUROPE?
[SOURCE: Reuters, AUTHOR: Foo Yun Chee]
Apparently, European Union regulators are to accept an offer by Apple and four publishers to end an antitrust probe into their e-book prices, two sources said, handing Amazon victory in a bid to sell online books cheaper than its rivals, sources said. The case underscores the battle between retailers and publishers over pricing control of e-books, which publishers hope will boost revenue and increase customers. Apple and the publishers have offered to let retailers set their own prices or discounts for a period of two years, and also to suspend "most-favored nation" contracts for five years, the sources said. Such clauses bar publishers from making deals with rival retailers to sell e-books more cheaply than Apple. Apple, Simon & Schuster, News Corp. unit HarperCollins, Lagardere SCA's Hachette Livre and Verlagsgruppe Georg von Holtzbrinck, the owner of German company Macmillan, made the proposal in September.
benton.org/node/138586 | Reuters | ars technica
Recommend this Headline
back to top


ARGENTIA MEDIA
[SOURCE: Wall Street Journal, AUTHOR: Taos Turner]
President Cristina Kirchner has set the stage for a showdown with Argentina's biggest media conglomerate, Grupo Clarín SA, in a dispute that some critics warn could undermine free speech. President Kirchner, who contends Clarín is a coup-mongering monopoly, has given the company until Dec. 7 to divest itself of assets such as its cable-television unit or see them auctioned off by the government. The conflict could have implications for businesses, the media and President Kirchner, whose approval ratings have tumbled this year amid rising crime, high inflation and a weak economy. At stake for Clarín is its future as an influential, independent media company that offers popular news and entertainment programs to millions of Argentines via its cable-TV and Internet services. Clarín was the only TV company to provide full coverage of recent nationwide protests against the government. Its breakup could limit the public's access to information, analysts say.
benton.org/node/138633 | Wall Street Journal
Recommend this Headline
back to top

Obama Wins The Election! Here’s His Technology Agenda

President Barack Obama has won the election! What does this mean to the future of innovation and the technology industry? Based on Obama’s record and statements released during the campaign, here’s what technologists can look forward to:

  • Strong support for high-skilled immigration reform
  • Open Government Reform
  • Continued support for government investment in clean technology, and the technology industry, through the Small Business Administration
  • Strong support for STEM Education

From Frustrated to Nervous, Television Networks’ Moods Explain Results

When a test is really, really hard, students sometimes can’t resist looking at the face of the class know-it-all for signs of dismay or discomfort. And on a really, really close election night, even anchors at rival networks couldn’t help sneaking a peek at the mood over at Fox News. And Fox News was the channel to watch on this election night.

On most days, it presents an alternative reality to its rivals, alerting viewers to Black Panthers stalking polling stations or citing a survey that had given Mr. Romney a double-digit lead over the president he was trying to oust. But on election night, everyone had to work with the same numbers. And in the end, Fox News called the election for President Barack Obama at the same time as CNN, even though the Romney campaign and their own expert, Karl Rove, said Fox was wrong. The subsequent dispute on-screen was, as one anchor said, “awkward.” Megyn Kelly left the set and marched down a corridor, a camera in tow, to interview the channel’s number crunchers, who said that Mr. Romney’s hopes had run out.

Ohio Viewers Hit By Anti-Obama TV ‘Special’ On Election Eve

ABC affiliate WSYX in Columbus (OH) aired a half-hour “election special” twice on Nov 5 — first at 6:30 p.m. instead of World News with Diane Sawyer, and later at 11:30 p.m., during the slot normally held by Nightline. Rather than a side by side comparison of the two major party candidates, however, the special featured some of the most partisan criticisms of President Barack Obama, and spent relatively little time examining Republican nominee Mitt Romney. WSYX and at least one other station operated by the Sinclair Broadcast Group in the crucial swing state aired election specials, which included content prepared by their corporate parent company.

Not Everyone Is Happy to See Political Ads End

The monthslong barrage of political ads will come to a sudden halt November 7 -- by one estimate more than a million have aired since June alone -- and most people will be thrilled. Not Jane Lueders, one of an elite cadre of actors clustered around Washington whose calendars explode every four years.

The voice-over specialist is communicating these days via email, because she is nearly speechless, croaking "this is what happens," into the phone line after an election season in which her annual income has risen by 50% and her voice has gone bust. Lueders and a Republican counterpart, Sheldon Smith, have recorded hundreds of ads between them for this year's race, and they are going to miss it. "Can I just confess I love doing negative spots?" Ms. Lueders said.

Social Media, Growing in Legal Circles, Find a Role in Florida Murder Case

When Mark O’Mara agreed to defend George Zimmerman in the Trayvon Martin murder case, one of his first major decisions was to embrace the Internet. He set up a legal defense Web site for his client, a Twitter page and a Facebook account, all with the purpose of countering what he called the “avalanche of misinformation” about the case and Zimmerman.

It was a risky move, unorthodox for a criminal defense lawyer, legal experts said, but a bold one. Late last month, the judge in the case, rebuffing the prosecution, allowedO’Mara to keep the online presence. In so doing, the judge sanctioned the use of social media in a high-profile murder case that was already steeped in the power of Facebook, Twitter and blogs. Not long after Martin was shot and killed, protesters took their cues from Facebook and demonstrated across the country. Angry words coursed through Twitter. Zimmerman, in hiding, started a Web site to raise money. The Martin family’s lawyers, who made ample use of traditional media, used Twitter to bring attention to Martin’s death. Social media is playing a role in the courtroom, too.

More Hints of Cord Cutting Surface in Pay-TV Results

Growth in the pay-television market was anemic in the third quarter, fueling the debate about whether subscribers are starting to cut the cord.

At least 90% of U.S. homes pay for some form of subscription TV, from cable, satellite or phone companies, according to Nielsen. In recent years cable operators have lost mostly video subscribers to satellite and phone company rivals while the broader market has grown slightly. But in the past year or so, the market has seen slight shrinkage in several quarters. That has sparked concerns that consumers might be disconnecting their pay-TV services in favor of cheaper options, like online video. Some also blame weak housing growth for the broader softness in the video business. But Dish's chief executive, Joe Clayton, indicated that the high price of pay television could be an issue. The cable industry is offsetting some of the video losses with growth in broadband.

Apple loses $368 million patent verdict in Texas

Apple has been ordered to pay $368 million in damages after it lost a patent battle in Texas over its FaceTime video-calling service. VirnetX, which has also launched intellectual-property litigation against Microsoft, Cisco and NEC, had sought more than $700 million in damages from Apple, which denied any infringement. Apple is expected to appeal the Texas jury's verdict. VirnetX claims 45 patents in the US and abroad relating to real-time communications and other security technologies. It has also filed a complaint against Apple to the US International Trade Commission alleging unfair trade practices.

AT&T to Pay Fine to Resolve Wireless Data Complaints

AT&T agreed to pay $700,000 as part of a consent decree to resolve complaints that the company switched certain consumers to its mandatory monthly wireless data plans even though it had promised they could retain their existing pay-as-you-go data plans.

These customers are called “grandfathered subscribers.” AT&T has agreed to refund excess charges paid by individual customers, which could be as much as $25 to $30 a month, depending on data use. The transfers began occurring in November 2009, shortly after AT&T required first-time smartphone subscribers or those who upgraded their phones to enroll in monthly data plans. Consumer complaints prompted the FCC to launch an investigation last year. AT&T has also agreed to an extensive compliance plan, which includes: consumer notification, training of customer care representatives, and periodic compliance reports to the FCC. AT&T must also conduct additional searches of its records to identify improperly switched consumers and ensure appropriate refunds.