April 2013

Governors group: Sales tax bill doesn't violate tax pledge

The National Governors Association has a message for Grover Norquist and Americans for Tax Reform: The online sales tax bill on the Senate floor does not violate ATR’s no-tax pledge.

NGA, which backs the sales tax bill, noted that the Congressional Budget Office had ruled that the Marketplace Fairness Act had no impact on federal revenues. The group also said that the anti-tax pledge that ATR administers – and the vast majority of congressional Republicans have signed – calls on lawmakers to oppose marginal rate increases or the net reduction of tax credits and deductions. “Marketplace Fairness does neither. It is not a new tax or a tax increase,” NGA said in its statement. “It clearly does not violate the pledge. In fact, the American for Tax Reform themselves admitted to leadership of the National Governors Association that this was not a violation. To say anything else is disingenuous.”

Google, Bing, Yahoo Still Anchor For Finding Information

Many people begin their search for goods and services on Google, Yahoo or Bing, compared with 37% on Amazon and 7% on eBay. When it comes to mobile searching, 87% of respondents prefer to use a search engine such as Google or Bing when conducting searches on smartphones and tablets, compared with 13% who prefer to use apps from Yelp or Amazon. The Raymond James survey data should alleviate some concerns by marketers over the move toward apps on mobile or more vertical search engines, like VerticalSearchWorks or Daybees -- where consumers can access information on events -- and away from traditional engines like Google, Bing and Yahoo.

For Congress, a Question of Cellphone Tracking

While the Senate considered an overhaul of a sweeping quarter-century-old law governing e-mail privacy, a House Judiciary Committee panel received dueling arguments over when and how police can track the location of Americans carrying a cellphone.

For investigators, knowing where a suspect is and at what time can be crucial to an investigation. Cellphones have become a powerful tool for establishing those facts — one detective scheduled to testify on Capitol Hill described them in prepared remarks as a “witness” to a crime. Less clear is the law on how authorities can extract that information from cellphones. Law enforcement officials say procuring a search warrant, based on probable cause, is too time-consuming and slows down an investigation. The law is vague on what information cellphone carriers must turn over to law enforcement and whether the officials require judicial review. Under what circumstances can police obtain a “tower dump,” meaning identify cellphone users whose devices pinged off a particular cellphone tower? Should a warrant be required to monitor the location of an individual with whom a known suspect is communicating? Should a warrant be required for specific location information of a known suspect? There is no consensus in the law on these questions.

Cellphone Customers Have at Least a Couple Reasons to Smile

Fewer cellphone calls are being dropped and data speeds are on the rise as all the major carriers expand their LTE networks. That’s the good news in a report from RootMetrics, which measures real-world cellphone performance nationwide. Sprint, AT&T and T-Mobile all reduced their call failure rates from the first half of the year to the second, according to RootMetrics. Verizon’s rate increased fractionally, but was still an industry-best 0.7 percent for the second half of the year.

FCC Announces Results of the 2012 Annual Lifeline Recertification Process

The Federal Communications Commission’s Wireline Competition Bureau hereby announces the results of the 2012 Lifeline annual recertification process.

In the Lifeline Reform Order, the FCC required that each eligible telecommunications carrier (ETC) and, where applicable, state Lifeline administrators, a state agency or an agent of the state (collectively, “state agency”) recertify the eligibility of each ETC’s subscriber base as of June 1, 2012 by the end of 2012, and report the results to the Universal Service Administrative Company (USAC) on FCC Form 555 by January 31, 2013.2 Subscribers that are no longer eligible or who do not respond to attempts to recertify their eligibility must be de-enrolled from the program. Based on results from the FCC Forms 555 submitted by ETCs, and analysis from USAC, the Bureau reports that 29 percent of all subscribers that were enrolled in the program in June 2012 have been de-enrolled from the program.

FTC Issues Updated FAQs on Amended Children's Online Privacy Protection Rule

The Federal Trade Commission has issued an updated set of frequently asked questions designed to help website operators, mobile application developers, plug-ins and advertising networks operating on child-directed websites and online services prepare for upcoming changes to the Children’s Online Privacy Protection Rule. The document contains information directed to websites and online services whose work online may involve the collection of personal information from children under age 13. The document provides guidance from the FTC staff that supplements the rule and other COPPA–related material previously published by the FTC.

Provo doesn’t know where its fiber is, Google makes city spend $500,000 to find it

The Provo (UT) city council formally approved the transfer of its iProvo fiber network to Google, making the city the third metro area to gain that sweet, sweet gigabit service. Google is only paying $1 for the network, but in return it will have to provide a “basic five-megabit” connection to all residents for seven years and provide free gigabit service to 25 public institutions. As it turns out, though, it’s as good of a deal as it might seem.

According to the Salt Lake Tribune, Provo Mayor John Curtis revealed Tuesday that the city now owes an additional $1.7 million to keep those fiber-optic lights on. The city must also pay “about $500,000 to a civil engineering firm to determine exactly where the fiber optic cables are buried, a requirement by Google," the Tribune reported. "Curtis admitted that the construction company that installed the fiber cables underground did not keep records of where they buried all of them.”

Proposals to end warrantless e-mail searches gain momentum in Congress

If the police want to read copies of a snail-mail letter you've received, they generally need to get a warrant. But the situation is different for e-mail.

Under the terms of the 1986 Electronic Communications Privacy Act, e-mail older than six months is considered abandoned. Authorities can obtain copies of it with no judicial oversight. When Congress established this rule, modern cloud e-mail services were still far in the future. Network storage was expensive, so it was assumed that users would delete messages from servers after reading them. Today, of course, people routinely leave years’ worth of e-mail sitting on the servers of webmail providers, making them vulnerable to government snooping. The need for reform has been obvious for years, but recent events have created a greater sense of urgency. On Thursday, the Senate Judiciary Committee will meet to markup a bill to reform ECPA. The House Judiciary Committee held a hearing on e-mail privacy last month.

How many people have a gigabit connection? Fewer than you think.

As Google expands its commitment to bringing fiber-to-the-home gigabit connections to more places, I wondered exactly how many people actually have gigabit connections. So I asked Ookla, the company that operates the Speedtest.net service for its data.

Turns out, there’s no real way to calculate who has a gig, but the numbers we do have indicate that not too many people are living in the future when it comes to connectivity. It turns out that between the first of this year and April 8 (when I got the data from Ookla) roughly one in 10,000 devices in the U.S. are surfing at gigabit speeds and roughly 1 in 5,000 homes worldwide can match them. Ookla runs the popular Speedtest.Net service and got this data from users who tested their connections during that time period. Ookla actually measure customers with speeds of above 800 Mbps, which is what it classifies as a gigabit. In the U.S. only 4,110 people have test results at that speed out of 45,468,731 people who used the Ookla tests. Globally, 34,721 users have speeds that high out of 224,404,945 tests. But, clearly not every broadband user is running Speedtest.net or has the right equipment.

The future of TV, according to Netflix CEO Reed Hastings

Netflix CEO Reed Hastings laid out an ambitious plan for Netflix’s future in a paper published on the company’s investor relations site that paints Netflix as one of the driving forces behind a transition from linear television to a world of internet-delivered on-demand content.

The paper repeated some key points Hastings has made it the past, but also included a number of noteworthy new insights, including some data points on how Netflix spends its money. Notably, Hastings said that Netflix is now spending over $2 billion a year on the licensing and creation of content. The company is spending another $350 million a year on improving its service and apps, including improvements to the streaming quality and customer service. And it is spending over $450 million per year on marketing in all of its markets around the world.