March 2013

Keeping the Incentive in Incentive Auctions

[Commentary] What if the Federal Communications Commission held a broadcast incentive auction and no one came? That’s a distinct possibility if the Commission does not heed the advice that a coalition of television stations filed recently with the agency.

The CC must encourage as many broadcasters as possible to participate, since without broadcasters there is no spectrum to auction. The FCC must also maximize the amount of money it raises, since the FCC will need to compensate the broadcasters that relinquish spectrum and reimburse broadcasters that relocate, with $7 billion left over for public safety and preferably more to help with the deficit.

The Expanding Opportunities for Broadcasters Coalition, representing more than 40 stations in the top dozen markets, listed three critical elements for a successful auction.

  • First, the Commission must not artificially limit the potential compensation to broadcasters. This is, after all, an incentive auction, and it would be foolhardy to limit the incentives from the get-go. The market forces of the auction will apply competitive pressures on the compensation broadcasters require and determine the prices wireless carriers are willing to pay while still maximizing broadcaster participation.
  • Second, the Commission must not exclude potential wireless bidders. Closing the auction to certain carriers would reduce competitive pressures and likely suppress the final bid amount, leaving crucial revenue on the table.
  • Third, the FCC must auction all the airwaves it clears rather than giving some away for unlicensed use. Freeing the spectrum will come with appropriate but considerable cost, and the FCC needs not only to cover that cost but earn a healthy return if it is going to meet the legislation’s objectives.

House Commerce Committee Leaders Continue Examination of $7 Billion Broadband Stimulus Programs

Republican leaders of the House Commerce Committee continued their examination of the president’s broadband stimulus programs, requesting information from both the Rural Utilities Service (RUS) and Government Accountability Office (GAO) regarding Rural Utilities Service’s Broadband Initiatives Program (BIP).

In a letter to RUS Acting Administrator John Padalino, the members requested information regarding the agency’s management and oversight of the BIP program, particularly its review process for awarding $66.4 million in grants and loans to Lake County. Members expressed concern that the Lake County project may be overbuilding areas already served by existing broadband providers, instead of expanding access to underserved or unserved areas, as required by ARRA.

Additionally, committee leaders requested GAO examine all of the loans and grants distributed through the BIP program. The members wrote, “As we seek to expand the deployment of broadband infrastructure in a constrained budget environment, the overbuilding of existing broadband networks using federal dollars represents a significant concern. As GAO and others have reported, access to broadband service can improve economic growth and quality-of-life. Yet, overbuilding diverts scarce budget resources from areas without broadband service to areas with service and can impede vital private-sector investment. Given the need to ensure the most efficient and effective use of federal dollars and guard against waste, fraud, and abuse, we ask that GAO conduct an in-depth analysis of work already completed under BIP.”

Forrester Forecasts 13% Gain In Online Sales

Fueled by mobile and multichannel offerings, America’s enthusiasm for online shopping shows little sign of slowing down, according to Forrester’s just-released forecast for the year ahead. E-commerce sales in the U.S. are likely to climb 13% to total $262 billion in 2013, or 8% of total retail sales. And that number is expected to reach $370 billion by 2017, or 10% of total sales, predicts analyst Sucharita Mulpuru. That reflects a 10% compound annual growth rate.

Engaging with Mayor Booker To Improve Government Social Media

If you’ve been following the conversations at South by Southwest this week, you know there’s been some spirited debate about government’s use of social media. Social media in government should either measurably improve citizen services for all or reduce costs.

Some of the keys to success moving forward will depend on:

  • Mainstream awareness of opportunities to collaborate. We need communities to know they can participate in the kind of engagement that Mayor Booker is talking about.
  • Collaborative approaches — more integrated, cross-cutting solutions.
  • Unlocked social data through APIs and analysis to empower programs, citizens and small businesses.
  • Improved accessibility for persons with disabilities and the aging population.

[Herman leads Social Media in the GSA Center for Excellence in Digital Government]

Fast, unlimited wireless at last? What a combined T-Mobile/MetroPCS means to you

With approval from the Federal Communications Commission and the Department of Justice, we could be just months away from the biggest transaction in the US telecom industry in years — a transaction that would be great news for T-Mobile. But what does it mean for customers?

Turning off MetroPCS's network has major advantages: by not having to support two entirely different kinds of networks on the same bandwidth, the combined company can eventually devote most or all of its AWS spectrum to LTE — 20MHz of it in some locations, which is an extremely fat, fast data pipe. By comparison, neither Verizon nor AT&T have more than 20MHz of LTE spectrum active in any market, and each of those carriers has more than twice the number of subscribers that a merged T-Mobile-MetroPCS would. But the roll-in of MetroPCS's airwaves isn't the only thing going for T-Mobile right now — it's been collecting valuable spectrum in droves since AT&T called off its doomed deal last year.

Five Fundamentals for the Phone Network, Part 3: Protecting All Consumers

Public Knowledge has proposed Five Fundamentals to guide the phone network upgrade to an IP-based system and this piece focuses on protecting all consumers.

The need for consumer protection builds upon PK’s previous two principles for the PSTN transition. The first principle states that everyone has the right to be a consumer of the phone network and that phone carriers have a duty to bring service to all Americans. The second principle promotes competition and interconnection between carriers, meaning that anyone should be able to place a call to another person, regardless of which phone company they use. Interconnection and other competition policies lead to a healthy, consumer-friendly market for phone service. Yet competition between carriers does not always guarantee all aspects of consumer protection. PK’s third principle ensures that all consumers are protected from potential harm dealt to them by their phone service providers, by enforcing privacy principles, truth-in-billing, and safety from predatory practices. It is important that the consumer protections ensured in current communications law are updated to reflect the IP-based infrastructure of the future. Today, the law explicitly protects consumers’ confidential information, and the FCC has relied on its authority over the traditional phone network to extend this protection to VoIP (voice over internet protocol) services. But the FCC has jurisdiction over other safeguards like “slamming rules” and “cramming rules” that they have yet to apply to VoIP providers.

Newest Phone Unlocking Bill Criticized as 'Temporary Fix'

Another phone unlocking bill has emerged on Capitol Hill, with Judiciary Committee members from both chambers joining forces to allow users to unlock their devices without carrier permission.

Judiciary Committee Chairman Sen. Patrick Leahy (D-VT) and Sen Al Franken (D-MN), as well as Sens Chuck Grassley (R-Iowa), Orrin Hatch (R-UT), and Mike Lee (R-UT) unveiled the Unlocking Consumer Choice and Wireless Competition Act yesterday. In the House, House Judiciary Committee Chairman Bob Goodlatte and Ranking Member John Conyers are backing companion legislation. The bill reverses a decision from the Library of Congress's Copyright Office, which made cell phone unlocking illegal back in January. "This straightforward restoring bill is about promoting consumer rights," Sen. Leahy said in a statement. "When consumers finish the terms of their contract, they should be able to keep their phones and make their own decision about which wireless provider to use." "It just makes sense that cell phone users should be able to do what they want with their phones after satisfying their initial service contract," Sen. Hatch said. "This bill reinstates that ability, while also ensuring that copyrights are not violated."

What Do You Do With the World’s Fastest Internet Service?

Google’s gigabit initiative, called Google Fiber, has sparked a round of questions across the tech industry. Is Google looking to become an Internet service provider? Does it simply want to spur other ISPs into providing faster service? And why wire Kansas City rather than, say, Silicon Valley or New York? And, finally, why gigabit Internet—what does Google expect people to do with the world’s fastest broadband service?

In this piece, I’ll focus on the last two questions: What has it been like for the people of Kansas City to live and work with the world’s fastest Internet? In my next column, I’ll examine Google’s strategic interests in Fiber—why is the search company building its own Internet lines? The fundamental problem with Google Fiber: It’s totally awesome, and totally unnecessary. During my time in Kansas City, I spoke to several local businesspeople, aspiring startup founders, and a few city boosters. They were all thrilled that Google had come to town, and the few who’d gotten access to the Google pipe said they really loved it. But I couldn’t find a single person who’d found a way to use Google Fiber to anywhere near its potential—or even a half or quarter of what it can do. It was even difficult to find people who could fully utilize Google Fiber in their imaginations. As hard as people tried, few could even think up ways to do something truly amazing with the world’s fastest Internet.

Is that really broadband? A look at the technologies in play.

The National Broadband Plan has set ambitious goals for high-speed Internet connectivity across the country, and agencies, cities and other municipalities have hopped on the broadband bandwagon. But what exactly counts as broadband?

The Federal Communications Commission originally designated broadband as anything faster than 200 kilobits/sec, which basically meant anything that wasn't the old dial-up modem, then upgraded it to 768 kilobits/sec downstream and 200 kilobits/sec upstream. The National Telecommunications and Information Administration still considers 768 kilobits/sec to be broadband at the most basic level, but the FCC in 2010 set the bar for the national broadband plan at 4 megabits/sec downstream and 1 megabit/sec upstream. The range of available broadband technologies is still wide. Here’s is a rundown of the most common types of broadband, their range of transmission speeds and, to put it into context for the everyday user, an estimate of how long, on average, each technology would take to download a 1M book, 4M song and 6.14G movie, drawn from the trove of information available from NTIA's National Broadband Map.

Solving the talent equation for health IT

Companies are scrambling to fill a health information technology talent void that could impede progress toward meeting government and consumer expectations, delivering on strategic priorities, and capitalizing on new growth prospects. As a result, more than three-quarters of top healthcare executives anticipate changes in their talent strategies over the next year.

  • Healthcare companies are increasingly borrowing technology specialists from other industries.
  • Healthcare companies must bring business and technology closer together to take advantage of the wealth of data being generated to improve health outcomes and constrain rising costs.
  • Seventy-five percent of providers are currently hiring new employees to support their IT priorities. They believe clinical informatics will be the most important skill for achieving their IT priorities.
  • Insurers ranked systems and data integration skills as most important to meeting HIT priorities and 89% think it is very important to have employees trained to integrate and analyze data from various sources.
  • Drug and device companies need a new set of tech skills to support emerging methods of conducting research and the need to prove the value of drugs to public and private purchasers. Thirty-nine percent believe it is important for new hires to be skilled in health economics outcomes research.