April 2013

Eligibility of Bundled Components Under the Schools and Libraries Program

In this public notice, the Federal Communications Commission’s Wireline Competition Bureau (Bureau) seeks comment on a proposal to clarify the schools and libraries universal service support program (informally known as the E-rate program) requirements for bundling devices, equipment and services that are ineligible for E-rate support (“ineligible components”) with E-rate eligible services and products.

In 2012, the Bureau sought comment on a petition filed by the State E-rate Coordinators Alliance (SECA) seeking clarification of how the FCC’s rules requiring cost allocation of ineligible components aligns with language in the Bureau's 2010 Gift Rule Clarification Order that allowed, under limited circumstances, the bundling of ineligible end-user devices and equipment without cost allocation. Having considered the comments filed in response to the SECA Petition Public Notice, the Bureau now proposes and seeks comment on additional clarifications to remove any potential uncertainty regarding the Commission’s requirement for applicants to cost allocate ineligible components when those ineligible components are bundled with eligible services.

[CC Docket No. 02-6; GN Docket No. 09-51]

Civil Rights Groups Call for FCC Action on Diversity Studies

Civil rights groups are pressing Federal Communications Commission Chairman Julius Genachowski to finally commission court-ordered diversity studies before he heads for he steps down from the FCC. He is expected to leave within the next several weeks.

Chairman Genachowski agreed to hold off on voting his media ownership proposal until a Minority Media and Telecommunications Council study on the effects of cross-ownership rules was completed, but that is separate from the series of diversity studies the FCC is supposed to conduct to inform and justify diversity initiatives. According to the groups, they have had meetings with FCC staffers that indicate the studies are ready to be put out for public comment on structure and methodology. They want that process to go forward ASAP, and not to be trumped by a single study. "While we support the Commission's apparent desire not to rush to an imperfect decision in the Quadrennial Review docket," they wrote, "we are concerned that the decision to await input from a single, narrowly focused, study before the Commission makes a decision in the Quadrennial Review docket could further delay the comprehensive studies." Also signing on to the letter were the American Civil Liberties Union, Asian American Justice Center, Common Cause, Communications Workers of America, National Urban League, NAACP, National Council of La Raza, National Consumer Law Center, National Hispanic Media Coalition, National Organization for Women Foundation, The Leadership Conference on Civil and Human Rights and the United Church of Christ, Office of Communication.

Shoppers In Buying Mode More Receptive To Online Ads

After surveying over 4,500 online shoppers, Aisle A found that 85% agreed with this statement: “When shopping online, I’m receptive to online ads for products or services that I am currently considering buying.” A more modest 62% of respondents agreed with this statement: “When shopping online, I’m receptive to additional products or services that are relevant to me (even if I’m not currently considering buying them) and targeted to my interests and buying preferences.”

Homeland Security No 2 Departs After Fostering Civilian Cyber Workforce

The Homeland Security Department second-in-command, who endeavored to boost civilian cybersecurity staffing, is exiting the agency.

While at DHS, Jane Holl Lute strategized to boost morale, if not pay, for in-house cyber talent. It is widely recognized that the federal government struggles to pluck cyber professionals from lucrative private sector careers. “We’re trying to create a culture that allows cyber heroes to bring value and to feel valued" by superiors and society, she told Nextgov in October 2012. Lute was responsible for instituting recommendations by a group of technology revolutionaries, including DefCon hacker convention founder Jeff Moss, on economical solutions to the human capital problem. In fall 2012, she backed the creation of a cyber reserve corps. It would corral veterans, corporate network whizzes and other computer-savvy civilians during national crises. Jane Holl Lute plans to enter the field of international Internet affairs.

Government OK With Liberty Purchase of Charter Stake

The Federal Trade Commission signaled it had no antitrust issues with Liberty Media's proposed purchase of a 27.3% stake in Charter Communications. The FTC, which teams with Justice to vet deals over a certain threshold -- Liberty's $2.6 billion offer easily cleared that hurdle -- for any competition issues. The notice means the FTC has concluded its review and finds no reasons to sue to block the deal or require conditions. Liberty becomes Charter's largest shareholder but not majority owner.

AT&T: Virtual MSO?

AT&T asked if customers would be interested in a "new video and Internet service" that could be delivered to a range of IP-connected devices without need for a separate set-top, and provide the option to bundle in broadcast TV channels, "popular sports and entertainment" networks, and even some streaming video services from sources such as Netflix. While delivering live TV and VoD content to IP devices without a set-top isn't exactly all that fresh and new in the TV Everywhere era, the notion of taking offering a subscription TV service bundle out of footprint could be a bit more interesting. "This service could be offered by any broadband provider, not necessarily AT&T," the survey notes, according to the publication.

More Nominations for National Museum and Library Services Board

President Barack Obama announced his intent to appoint the following individuals to be members of the National Museum and Library Services Board: Tammie Kahn, George Kerscher, and Jacquelyn K. Sundstrand.

  1. Tammie Kahn is the Executive Director of the Children’s Museum of Houston, a position she has held since 1995. In this role, she has overseen an expansion of the museum and the creation of an Institute for Family Learning. She is a past President of the Houston Museum District Association and served as the Associate Director of the Museum of Fine Arts, Houston. She has served on the boards of the Association of Children’s Museums, the Institute for Learning Innovation, the Greater Houston Collaborative for Children, and the Houston Holocaust Museum. Ms. Kahn received a B.S. from the University of Texas at Austin and an M.B.A. from the University of Houston.
  2. George Kerscher is Secretary General of the DAISY Consortium, an international organization dedicated to facilitating access to information for persons with disabilities. He is President of the International Digital Publishing Forum, Senior Officer of Accessible Technology at Learning Ally, and serves on the National Instructional Materials Accessibility Standard Board. He was named an Innovator of the Year by U.S. News and World Report in 1998, received the Harry Murphy Catalyst Award in 2004, and recognized as a White House Champion of Change in 2012. Mr. Kerscher received a B.A. from Northeastern Illinois University.
  3. Jacquelyn K. Sundstrand is an associate professor at the University of Nevada, Reno and the Manuscripts and Archives Librarian in the University Libraries’ Special Collections Department. Previously, she was the Library and Archives Coordinator at the Southern Oregon Historical Society from 1993 to 2001, and the Special Collections Librarian and Archivist at California State University, Dominquez Hill from 1985 to 1993. She is a member of the Nevada State Historic Resources Advisory Board, the Society of American Archivists, the Society of California Archivists, the Conference of Intermountain Archivists, and the Association of Centers for the Study of Congress. Ms. Sundstrand received a B.A. from California State University, Fullerton, an M.S.L.S. from the University of Southern California, and an M.A. from the University of California, Riverside.

Will 21st century broadcasting use the airwaves?

[Commentary] The number of people watching broadcast TV with the aid of an antenna is a fraction of what it used to be; about 90% of U.S. homes tune in these channels via some form of pay TV. If Fox decided to shut down its transmitters tomorrow, it would cut off only 10% of its viewers, many of whom might quickly sign up for cable just so they could keep watching "American Idol." And doing so would not only end the threat Aereo poses to the retransmission fees Fox receives from pay-TV operators, it could conceivably enable them to demand higher amounts from those operators -- and from the Aereos of the world.

Such a shift from free to pay is contemplatable mainly because the four major broadcasters' programming is more popular than everything else on TV. That's likely to remain true even if they lose all their viewers in homes that rely on antennas. One might argue that networks should try to capitalize on the viewers brought to them by Aereo and its ilk, rather than cutting them off. More viewers should mean more advertising dollars, after all. But if Dish successfully defends the ad-skipping function of its set-top boxes, it may not take long for someone to come up with a service that combines that with Aereo's offering. Such a service wouldn't pay the broadcasters for their programs, and advertisers wouldn't pay them for the viewers. The federal government has tried to prod broadcasters to give up at least some of their airwaves so the spectrum could be auctioned off for more innovative uses, but the big networks have shown little interest in doing so. It would be richly ironic if a TV-over-the-Internet service caused network executives to change their minds.

McAdam: Wireless, Broadcast Can Co-Exist

Verizon CEO Lowell McAdam, whose desire to stream the 2014 Super Bowl live over wireless has antagonized broadcasters, says his goal is to complement, not compete with, traditional TV.

“It’s not our intent to get in the way of broadcasters,” McAdam said at the National Association of Broadcasters Show in Las Vegas. “I think it would actually make people more interested in being what’s broadcast rather than a tradeoff. But who knows?” McAdam’s remarks came three months after going public at CES with plans to deliver live video over broadband, after which, “some of my friends that are broadcasters said you just became the most hated man in America,” he said. In a Q&A with NAB CEO Gordon Smith, who noted “some might say it takes courage for a broadband guy to come to a broadcast convention,” McAdam said he believes using Verizon’s nationwide LTE wireless network to broadcast big events, like the Super Bowl, would enhance consumer experience without detracting from broadcast TV, which would unconditionally draw the vast number of viewers.