April 2013

Feds Should Control Spectrum Use

[Commentary] Contrary to Holman Jenkins's "Broadcasters and the Spectrum Wars" (Business World, April 13), government must play a vital role in aggregating and repacking spectrum so that this finite resource is made available for its highest and best use, expeditiously cleared of incumbent users, harmonized nationally and when possible, internationally.

This concept has been supported by the Obama administration, a majority in both the House and Senate and more than 100 leading economists. We need the federal government to actively participate in ensuring that the U.S. wireless industry remains the world's leader. The U.S. has perfected the "virtuous cycle of innovation," which means as long as clear and harmonized spectrum is available, networks are updated, spurring the release of advanced devices, which in turn generate new apps and content that drive consumer usage and demand, leading to still further improvements.

[Steve Largent is President and CEO of CTIA-The Wireless Association]

Apple Has an Identity Crisis

Apple is facing an identity crisis on Wall Street.

As Apple prepares to report what analysts project may be the company's first year-over-year quarterly earnings decline in a decade on Tuesday, it is also grappling with jittery investors. Much of the investor nervousness is rooted in how Wall Street is treating and valuing the Cupertino, Calif., company as a traditional hardware maker. One camp of analysts and some investors said there is strong evidence that Apple should be viewed in a different light: as a software-hardware hybrid. The distinction matters. If it continues to be seen as a hardware business, Apple's streak—driven by products like the iPhone and iPad—could run out quickly as smartphones and tablets get commoditized and consumer tastes change.

If Apple is classified as a software-hardware hybrid, the company could be valued more like Internet and software makers that have recurring revenue streams and that often trade at higher price-to-earnings ratios than hardware firms.

CBS Buys Stake in TV-Streaming Firm

CBS has taken a minority investment in Syncbak, a company that allows local-TV stations to stream programming to consumers over the Web, a move that comes as broadcasters are fighting unauthorized Internet distribution of their content. Syncbak, founded in 2009 by Jack Perry, has created a technology to deliver broadcast-TV signals to tablets and smartphones. The service isn't yet commercially available. It is being tested by more than 100 local-TV stations in 70 markets. CBS didn't disclose the amount of its investment or size of the stake. The company's other strategic investors include the National Association of Broadcasters and the Consumer Electronics Association.

Why the Print Model for Broadcasting Works

[Commentary] No outside force or coercion, no loss of freedom of the press or speech, is necessary to produce all sorts of broadcast programming in the public interest. It may not always be of highest quality, but is the government to be the arbiter of what is quality? And, for the diehard critics, I challenge them to name one controversial issue of public importance, federal, local, or international, not covered by the broadcast media. They cannot.

[Fowler is a former Federal Communications Commission chairman]

ACC Deal Might Bring Stability to Conferences

The Atlantic Coast Conference announced that its 15 member schools unanimously approved granting their media rights to the conference through 2027, essentially making ACC schools worthless during that time to any league interested in poaching them.

It was believed that several ACC schools could have been targeted in the next round of expansion because of the combination of their athletic programs, academic profiles and media markets. The conference already had increased its exit fee to above $50 million, but the new deal solidifies the ACC and makes clear the immediate future of college sports for the first time since 2010. The Big Ten Conference, Big 12 Conference and Pac-12 Conference already have grant-of-rights deals in place.

The search for more spectrum

If President Barack Obama’s goal of repurposing 500 MHz of spectrum for commercial broadband use is to have any chance of success, some of that spectrum must come from the federal government. With industry and the Federal Communications Commission already working to tap alternative sources of this finite resource, the federal government and the Defense Department in particular face growing pressure to share the wealth.

Much of the talk now is focused on how the government could be induced to move faster, and most of the ideas revolve around compensating agencies for relinquishing the spectrum. At the FCC, Commissioner Jessica Rosenworcel advocates giving agencies part of the proceeds that come from auctioning spectrum to the private sector. Similarly, the President’s Council of Advisors on Science and Technology suggested developing some kind of spectrum currency. And some lawmakers, including House Communications and Technology Subcommittee leaders Reps. Greg Walden (R-OR) and Anna Eshoo (D-CA), have talked about creating a fee structure that would penalize inefficient spectrum use. In the current budget-constrained environment, the financial rewards could be appealing to agencies. But so far, nothing material has developed.

FCC Invites Comments on Improving Receiver Performance

Early in 2012, Federal Communications Commission Chairman Julius Genachowski tasked the FCC’s Technological Advisory Council (TAC) to study the role of receivers in ensuring the efficient use of spectrum and to provide recommendations on avoiding obstacles posed by receiver performance to making spectrum available for new services. Acting on this request, the TAC working group on Receivers and Spectrum provided actionable recommendations to the Chairman at the TAC’s December 2012 meeting and has recently formalized these recommendations in a white paper for the Commission to consider. The FCC’s Office of Engineering and Technology (OET) invites comment on the TAC white paper and its recommendations to help determine what next steps may be appropriate.

In addition to the work of the TAC, the Government Accountability Office (GAO) was tasked by Congress in the Middle Class Tax Relief and Job Creation Act of 2012 to study spectrum efficiency and receiver performance. The report recommends the Commission consider small-scale pilot tests and other methods to collect information on the practical effects of various options for improving receiver performance.

Also, in July 2012, the President’s Council of Advisors on Science and Technology (PCAST) published a Report that noted the important role of receivers in spectrum policy and regulation, and recommended receiver interference limits be defined to specify the level of radio interference that receivers should be expected to tolerate without being able to make claims of harmful interference. The TAC white paper focuses on this definition of “interference limits” in making its policy proposals.

OET seeks specific comment on the TAC white paper, which recommends multiple actions the Commission could take to implement an interference limits policy. OET also seeks comment on the overall interference limits policy approach proposed in that white paper and information on the practical effects of various options including the method used today relative to receiver standards and specifications, the use of multi-stakeholder organizations in the development of interference thresholds, and the role of the FCC.

Comment Date: June 21, 2013
Reply Comment Date: July 8, 2013

News Media and Social Media Become Part of a Real-Time Manhunt Drama

The all-consuming search in Massachusetts for the suspects in Boston Marathon bombings gripped the nation with some of the most startling, and at times unnerving, news coverage in years.

In the middle of it all were reporters, camera crews and ordinary citizens with cellphone cameras who were suddenly entwined with the story. When the second suspect was surrounded on April 19, some reporters were so close to the scene that they could count the number of gunshots and flash bang sounds. The close interaction of reporters with the unfolding events underscored the complex relationship the news media have had with law enforcement authorities this week. News organizations have been both scolded for irresponsible reporting and employed to relay information to the public, sometimes at the same news conference. Earlier on April 19, the authorities thanked news media outlets for spreading the word that Bostonians should take shelter — and cautioned them against repeating secondhand or thinly sourced information.

Breaking News Is Broken

[Commentary] Inspired by the events of the past week, here’s a handy guide for anyone looking to figure out what exactly is going on during a breaking news event.

When you first hear about a big story in progress, run to your television. Make sure it’s securely turned off. Next, pull out your phone, delete your Twitter app, shut off your email, and perhaps cancel your service plan. Unplug your PC. Now go outside and take a walk for an hour or two. Maybe find a park and sit on a bench, reading an old novel. Winter is just half a year away—have you started cleaning out your rain gutters? This might be a good time to start. Whatever you do, remember to stay hydrated. Have a sensible dinner. Get a good night’s rest. In the morning, don’t rush out of bed. Take in the birdsong. Brew a pot of coffee. Finally, load up your favorite newspaper’s home page. Spend about 10 minutes reading a couple of in-depth news stories about the events of the day.

And that’s it: You’ve now caught up with all your friends who spent the past day and a half going out of their minds following cable and Twitter. In fact, you’re now better informed than they are, because during your self-imposed exile from the news, you didn’t stumble into the many cul-de-sacs and dark alleys of misinformation that consumed their lives. You’re less frazzled, better rested, and your rain gutters are clear.

Sen Durbin says online sales tax needed to save states, brick-and-mortar stores

Senate Majority Whip Dick Durbin (D-IL), a cosponsor of a bill allowing states to collect taxes from online sales, said that the bill is needed to save states that are drowning in red ink, and brick-and-mortar stores that are trying to compete with Internet retailers.

"My state is struggling, terrible budget problems," Sen Durbin said. "We're in the red with deficits, pension system is in trouble. Money that should be collected for sales tax, not being collected." The bill being considered today would allow states to collect the sales tax from online retailers, most of which are allowed to escape the collection of taxes from the 46 states that have a sales tax. Sen Durbin said few people are aware that they are supposed to pay this tax each year. "It's really an honor system, that's what it comes down to," he said. "It turns out only one out of 20 people in Illinois even know this exists. Five percent of the population knows." Sen Durbin said he has paid the tax on his own online purchases, ever since his accountant asked if he wanted to pay them. "I said, 'I think I do,' and I did, and I have ever since," Sen Durbin said.

Benton

Search