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May 2013

CenturyLink, Colorado lawmakers fight over $54 million phone subsidy program

A controversial rural telephone subsidy program that the Colorado Public Utilities Commission wants to phase down is the target of separate battles spearheaded by CenturyLink and state lawmakers. CenturyLink, which receives at least $50 million annually from the rate-payer-funded Colorado High Cost Support Mechanism, is seeking a judicial review of the PUC's plans to cut the subsidy. The PUC's decision last year would also eliminate rate caps on basic phone service in competitive areas.

Regulators plan to start the process of determining those areas soon. Democratic lawmakers are looking to divert some of the money to fund broadband expansion. Senate President John Morse, D-Colorado Springs, is floating a bill that would use high-cost funds to subsidize broadband service in unserved and underserved communities. It targets the money that the PUC would determine is no longer needed to subsidize phone service in competitive areas. A preliminary estimate from a year ago pegged that figure at $10 million to $20 million. The measure is facing strong opposition from the telecommunications industry, given the controversy surrounding the federally funded EAGLE-Net Alliance program.

CenturyLink Enters the Gigabit Network Era

If you believe that Google, with their Google Fiber initiative, intended to raise awareness about gigabit FTTP networks and persuade other ISPs to move in that direction, it appears to be working. The latest to join the movement is CenturyLink, who announced that they will bring a symmetrical gigabit FTTP network to Omaha.

The network will pass 48K homes in CenturyLink’s Omaha footprint. “CenturyLink is pleased to offer its Omaha customers ultra-fast broadband speeds up to 1 Gbps to help keep pace with growing broadband demands,” said Karen Puckett, CenturyLink chief operating officer in a CenturyLink press release. “This demonstrates our commitment to deliver communications solutions that provide our customers with the technology they need to enhance their quality of life, now and into the future.” CenturyLink reports they will begin rolling out this network as early as next week and expects it to be completed by early October 2013.

Parents, Children, Libraries, and Reading

The vast majority of parents of minor children — children younger than 18 — feel libraries are very important for their children. That attachment carries over into parents’ own higher-than-average use of a wide range of library services. The ties between parents and libraries start with the importance parents attach to the role of reading in their children’s lives. Half of parents of children under age 12 (50%) read to their child every day and an additional 26% do so a few times a week. Those with children under age 6 are especially keen on daily reading with their child: 58% of these parents read with their child every day and another 26% read multiple times a week with their children.

The importance parents assign to reading and access to knowledge shapes their enthusiasm for libraries and their programs:

  • 94% of parents say libraries are important for their children and 79% describe libraries as “very important.” That is especially true of parents of young children (those under 6), some 84% of whom describe libraries as very important.
  • 84% of these parents who say libraries are important say a major reason they want their children to have access to libraries is that libraries help inculcate their children’s love of reading and books.
  • 81% say a major reason libraries are important is that libraries provide their children with information and resources not available at home.
  • 71% also say a major reason libraries are important is that libraries are a safe place for children.

Almost every parent (97%) says it is important for libraries to offer programs and classes for children and teens.

Pressing for Freedom: The State of Digital and Media Repression Worldwide in 2013

Celebrating World Press Freedom Day, Under Secretary for Public Diplomacy and Public Affairs Tara Sonenshine delivered the following remarks.

  • The United States of America was built on freedom of expression. It was one of our first breaths of life as a nation – and remains an indispensible and enduring element of who we are. And it is a fundamental freedom for all people, enshrined in the Universal Declaration of Human Rights and the International Covenant on Civil and Political Rights. Media freedom is a key part of that; whether it comes from what we say in public squares or from what we type on our keyboards online – print newspapers, blogs, texts, or tweets.
  • Some governments are too weak or unwilling to protect journalists and media outlets. Many others exploit or create criminal libel or defamation or blasphemy laws in their favor. They misuse terrorism laws to prosecute and imprison journalists. They pressure media outlets to shut down by causing crippling financial damage. They buy or nationalize media outlets to suppress different viewpoints. They filter or shut down access to the Internet. They detain and harass – and worse.
  • We urge all people – members of news organizations, civil society and think tank institutions; political leaders, scholars, and citizens of every faith and ethnicity – to call for accountability. To demand that governments enforce human rights that protect journalists and this fundamental freedom. To shine a light on long-standing and emerging repressive restrictions on, and threats to, freedom of expression whether they are through traditional media or online.

Fox’s Original Idea: No More Reruns

In the face of mounting cable competition and rising DVR usage, Fox believes that running repeats to fill the long summer months and to stretch 22 episodes across a 35-week TV season just won't cut it anymore.

So, the network that lost its No. 1 ranking this season is promising affiliates more original programming, some in the form of 13-15 episode "event series," each with its own complete story arc. Fox entertainment chief Kevin Reilly has been pitching the strategy, which borrows heavily from cable, to Fox affiliates and he is expected to share more details with the rest of the media world at the network's upfront presentation in New York on May 13.

Comcast: We’ll Stick With Triple Play

Comcast told analysts that it will continue to upsell customers into its triple play product bundle of video, data and phone.

First quarter video subscriber losses rose for the first time since the third quarter of 2010 at Comcast to 60,000 from 37,000 in 2012. On a conference call with analysts to discuss quarterly results, Comcast said the increase was due to two factors: a change in the way it accounts for video customers in multiple dwelling units (MDUs) and a price increase across a wider portion of its footprint. Comcast chairman and CEO Brian Roberts noted the increase in video losses, but said the company was still committed to growth. “Our goal is to continue to make progress reducing video customer losses,” Comcast chairman and CEO Brian Roberts said. Comcast vice chairman and chief financial officer Michael Angelakis said on the call that Comcast implemented a rate increase across 72% of its footprint in the quarter, compared to 62% in the same period last year. In addition, it changed the way it counts MDU customers, which accounted for about half of the losses. He added that the rest of the customer losses were less profitable single play subscribers.

I’m still here: back online after a year without the Internet

[Commentary] I was wrong. One year ago I left the internet. I thought it was making me unproductive. I thought it lacked meaning. I thought it was "corrupting my soul." It's a been a year now since I "surfed the web" or "checked my email" or "liked" anything with a figurative rather than literal thumbs up. I've managed to stay disconnected, just like I planned. I'm internet free. And now I'm supposed to tell you how it solved all my problems.

I'm supposed to be enlightened. I'm supposed to be more "real," now. More perfect. But instead it's 8PM and I just woke up. I slept all day, woke with eight voicemails on my phone from friends and coworkers. I went to my coffee shop to consume dinner, the Knicks game, my two newspapers, and a copy of The New Yorker. And now I'm watching Toy Story while I glance occasionally at the blinking cursor in this text document, willing it to write itself, willing it to generate the epiphanies my life has failed to produce. I didn't want to meet this Paul at the tail end of my yearlong journey.

May 1, 2013 (Wheeler to Head FCC?)

BENTON'S COMMUNICATIONS-RELATED HEADLINES for WEDNESDAY, MAY 1, 2013


CYBERSECURITY
   Cybersecurity Legislation Must Not Violate Americans' Right to Privacy - press release
   NIST Reworks Cyber Guidelines for the Hacking Era
   As cyberthreats mount, hacker’s conviction underscores criticism of government overreach [links to web]
   How to Defeat Cyber Jihad - analysis [links to web]

POLICYMAKERS
   President Obama to Name Wheeler to Head FCC
   Six Revealing Quotes From Obama’s New FCC Nominee, Tom Wheeler
   Groups Already Weighing In on Wheeler Chairmanship
   The Next Elizabeth Warren: Susan Crawford’s crusade against lousy, overpriced Internet providers
   Senior Congressman and Newcomer Win Senate Nods in Massachusetts [links to web]

INTERNET/BROADBAND
   Nevada opens door of online gambling with poker launch [links to web]
   The Business Case For Government Fiber Networks - analysis
   Online Listing Service Maps Available Broadband Sites
   Internet Society Panel Focuses on Rural and Low-Income Broadband Access [links to web]
   When Will Cable Start Shifting Bandwidth Away from Video and to Internet Access? - analysis [links to web]

WIRELESS/SPECTRUM
   Study: Limiting Incentive Auction Bidding Could Cost $12B
   FCC chief: Airwave auction should boost competition
   PubTV urges commission to drop ‘OET-69’ proposal [links to web]
   Dish Network warns of SoftBank's ties to bribery
   Sprint Shareholders Shouldn't Rush Into Dish Network's Arms - analysis
   Why Aren't Smartphones Making Us More Productive?
   T-Mobile to close MetroPCS deal [links to web]
   The Part Of The Internet You Don’t See Lets Machines Talk To Each Other—And Will Change The World [links to web]
   By 2018, tablets will be obsolete, says legacy smartphone company CEO [links to web]
   Craving Wi-Fi, Preferably Free and Really Fast [links to web]

OWNERSHIP
   Regulatory clouds over Google have largely cleared - analysis
   A Change in the FCC's Broadcast Foreign Ownership Rules In the Near Future? - analysis [links to web]

CONTENT
   FCC's Indecency Policy Takes Some Heat
   E-Books and Democracy - op-ed

GOVERNMENT & COMMUNICATIONS
   Congress, now live on YouTube [links to web]

JOURNALISM
   Digital Subscribers Buoy Newspaper Circulation

EDUCATION
   Duke University Withdraws From Online Course Group [links to web]

COMPANY NEWS
   Verizon CTO: Future Services Will be Based on Four Key Platforms [links to web]

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CYBERSECURITY

CISPA RESPONSE
[SOURCE: The White House, AUTHOR: Todd Park, Michael Daniel]
The White House issued its official response to a We The People petition titled “Stop CISPA (Cyber Intelligence Sharing and Protection Act).” The White House issued a veto threat for the Cyber Intelligence Sharing and Protection Act (CISPA) on April 16, because the legislation did not fully address our core concerns (especially the protection of privacy). Even though a bill went on to pass the House of Representatives and includes some important improvements over previous versions, this legislation still doesn't adequately address our fundamental concerns. But it's not good enough to just stop things: We've got to work together, with legislators on Capitol Hill, technology experts from the private sector, and engaged advocates like you to advance cybersecurity legislation without compromising privacy. When it comes to information-sharing, there are three key principles we apply to any legislative proposal: Does it (1) sufficiently protect privacy and civil liberties, (2) ensure that a civilian department -- not an intelligence agency -- is the primary point of entry for cybersecurity information sharing, and (3) provide narrowly tailored liability protections that would allow the private sector to respond to threats (without encouraging reckless behavior). Here's a bit more detail about each:
It's important that any information shared under a new cybersecurity law must be limited to what's relevant and necessary for cybersecurity purposes. That also means minimizing information that can be used to identify specific individuals. For example, if a utility company is looking for government assistance to respond to a cyber attack, it is unlikely that it needs to share the personal information of its customers, like contact information or energy-use history, with the government.
Cybersecurity legislation needs to preserve the traditional roles for civilian and intelligence agencies that we all understand. Specifically, if legislation authorizes new information sharing between the private sector and the government, then that new information should enter the government through a civilian department rather than an intelligence agency. That doesn't mean breaking the existing mechanisms that already work. For example, victims of cyber crime ought to continue to report those violations to federal law enforcement agencies and public-private information-sharing relationships that already exist should be preserved.
Any new legislation ought to provide legal clarity for companies that follow the rules and appropriately share data with the government. But it should not provide broad immunity for businesses and organizations that act in ways likely to cause damage to third parties or result in the unwarranted disclosure of personal information.
Moving forward, the Obama Administration will continue to advocate vocally for cybersecurity legislation that applies these principles to protect privacy.
benton.org/node/150927 | White House, The | The Hill
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NIST REWORKS CYBER GUIDELINES FOR THE HACKING ERA
[SOURCE: nextgov, AUTHOR: Aliya Sternstein]
The National Institute of Standards and Technology has rewritten federal cybersecurity standards for the first time in nearly a decade to address evolving smartphone vulnerabilities and foreign manipulation of the supply chain, among other new threats. The 457-page government computer security bible, officially called "SP (Special Publication) 800-53," was last revised in 2005. That was long before the rise of advanced persistent threats -- infiltrations that play off human failings to linger in systems until finding sensitive data. Agencies are not required to follow all the specifications, but rather choose among the protections that suit their operational environments, such as space in the case of NASA. To protect critical computer parts, the compendium recommends sometimes withholding the ultimate purpose of a technology from contractors by "using blind or filtered buys." Agencies also should offer incentives to vendors that provide transparency into their processes and security practices, or vet the processes of subcontractors. NIST broaches the controversial approach to "restrict purchases from specific suppliers or countries," which U.S. technology firms, even those who have been hacked, say might slow installations. The new guidelines also cover the challenges of web-based or cloud software, insider threats and privacy controls.
benton.org/node/150920 | nextgov
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POLICYMAKERS

WHEELER FOR FCC?
[SOURCE: Wall Street Journal, AUTHOR: Danny Yadron]
President Barack Obama is expected to soon nominate a former top lobbyist for the cable and wireless industries to lead the Federal Communications Commission, two people familiar with the matter said. [Note: Reuters attributes the news to “a White House official”] Tom Wheeler, a venture capitalist and longtime industry operative, will be tapped to lead the agency that governs the nation's scarce wireless airwaves and regulates telephone networks and indecency on television. President Obama is expected to make the announcement as soon as May 1, an industry official and a person familiar with the situation said. Current FCC Commissioner Mignon Clyburn will act as interim chairman, the industry official said.
benton.org/node/150925 | Wall Street Journal | Politico | Reuters | USA Today | The Wrap | Washington Post
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SIX REVEALING QUOTES FROM OBAMA'S NEW FCC NOMINEE, TOM WHEELER
[SOURCE: National Journal, AUTHOR: Brian Fung]
Tom Wheeler, reportedly the nominee to chair the Federal Communications Commission, now faces confirmation by the Senate, but that's perhaps the last place to turn for insight into what the candidate really thinks on tech policy. A far more interesting set of opinions can be found on Wheeler's blog, which he's kept since May 2007.
On network neutrality, Wheeler tried to convince network operators to back the FCC's policy.
Clinging to the comfy economics of scarcity by moving content behind pay walls won’t bring yesterday back. ... The name of the game is how to make money out of abundance, not how to maintain scarcity.
On the privatization of space exploration, Wheeler likened NASA to a telecom monopoly.
On reallocating spectrum more efficiently, he argued for a kind of lightly managed chaos
On Internet privacy, Wheeler proposed entrusting network operators rather than content providers or Web companies themselves.
Wheeler hinted at his favor for 2011's failed AT&T/T-Mobile merger—not because it would've been good for consumers, or for the businesses themselves, but because it would've given the FCC more jurisdiction to regulate mobile broadband.
benton.org/node/150924 | National Journal
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REACTION TO WHEELER
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
Wheeler for FCC chair? Here’s reaction from public interest groups:
"The Federal Communications Commission needs a strong leader -- someone who will use this powerful position to stand up to industry giants and protect the public interest," said Free Press president Craig Aaron. "On paper, Tom Wheeler does not appear to be that person, having headed not one but two major trade associations. But he now has the opportunity to prove his critics wrong, clean up the mess left by his predecessor, and be the public servant we so badly need at the FCC."
“He can’t be pigeon-holed,” said Gigi Sohn, president of consumer advocacy group Public Knowledge. “He’s had a wide variety of experiences and has worked with competitive companies as well as incumbents. I truly believe he will be independent and thoughtful…. He's also at a time in life where he's not looking for the next job. (That) will add to his independence."
benton.org/node/150922 | Broadcasting&Cable
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SUSAN CRAWFORD
[SOURCE: New Republic, AUTHOR: John Judis]
Telecom regulators don’t usually have public followings, except perhaps among other telecom regulators. But as soon as rumors began circulating that Julius Genachowski planned to resign as chairman of the Federal Communications Commission (FCC), petitions appeared on sites like BoingBoing, Reddit, and Daily Kos calling on President Barack Obama to appoint a 50-year-old law professor and former administration official named Susan Crawford as Genachowski’s successor. It’s not hard to see why she has acquired an enthusiastic fan base in these precincts of the Internet. With an appealing blend of earnestness and feistiness, Crawford is set on turning the sorry state of broadband and wireless services in the United States into the biggest populist outrage since Elizabeth Warren went after the banks. Like Warren, Crawford has become a dreaded figure to the industry she wants to reform. Representatives from Comcast and other telecoms have refused to appear on congressional panels with her. “My name comes up in discussions about the new FCC chair. I’m on lists,” Crawford has said—but she expects the job to go to telecom entrepreneur and Obama bundler Tom Wheeler. “It’s obvious to me that they can’t [appoint me],” she told me. “The incumbents would go bananas.”
benton.org/node/150882 | New Republic
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INTERNET/BROADBAND

CASE FOR GOVERNMENT FIBER NETWORKS
[SOURCE: Broadband Communities, AUTHOR: Joanne Hovis]
With the lucky few recipients of federal broadband stimulus grants now hard at work building their networks, localities that did not win funding or were not in a position to apply could be forgiven for thinking they missed the opportunity to operate a government-owned, fiber optic broadband network. This is especially true for any community in danger of losing its institutional network (I-Net) – that hard-won concession of cable contracts from an earlier franchising environment – because of regulatory or technical changes. However, despite the closing of the $7 billion broadband stimulus window and the ongoing shift from franchise-funded I-Nets, viable options remain for communities to build next-generation networks to serve governmental and institutional needs. Rather than government grants or cable-company funding, new federal E-Rate regulations and new ways to analyze the benefits of municipal fiber networks will be the keys to a successful business case. [Editor's note: Joanne Hovis is a member of the Benton Foundation's Board of Directors]
benton.org/node/150886 | Broadband Communities
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MAPPING AVAILABILE BROADBAND SITES
[SOURCE: Government Technology, AUTHOR: Brian Heaton]
Governments and businesses now have an easy way to turn buildings and other sites into revenue-generating broadband resources. The Connected Nation Exchange (CNX) pairs property owners that have assets such as towers, utility poles, rooftops and Rights of Way with broadband providers that need additional locations to expand their networks. Owners add their assets to a digital map, which allows telecom companies to see what resources exist in a given area. The parties then negotiate for the rights to use those properties. CNX aggregates assets, and then displays a GIS-based listing of each location or structure on an interactive map. The exchange is powered by Instalytics, CNX’s proprietary software. CNX is a spin-off venture of Connected Nation, a broadband mapping organization.
benton.org/node/150888 | Government Technology
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WIRELESS/SPECTRUM

INCENTIVE AUCTON STUDY
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
If the Federal Communications Commission limits the participation of either Verizon or AT&T in the upcoming spectrum incentive auctions, it could reduce the proceeds by as much as $12 billion (or 40%), which could mean there would not be enough money to pay for all the spectrum broadcasters give up. That is according to research released by the Center for Business and Public Policy at Georgetown University's McDonough School of Business. The research was conducted by Robert J. Shapiro, Douglas Holtz-Eakin and Coleman Bazelon. According to a spokesperson for Georgetown, it was funded by the McDonough School and not any outside company. The authors warn that a $12 billion shortfall -- from a potential $31 billion in proceeds with the big carriers participating to $19 billion without -- could mean that there might not be enough to build out the national interoperable public safety broadband network and pay the $2 billion in broadcaster re-packing costs and be able to pay for "the full amount [of spectrum] made available by the broadcasters." The research also indicated that if the wireless carriers were discouraged or prevented from bidding, their plan B would be deploying less efficient technologies that would ultimately cost consumers. They estimated that strategy could increase monthly bills by 9%.
benton.org/node/150898 | Broadcasting&Cable | Georgetown
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AUCTIONS AND COMPETITION
[SOURCE: The Hill, AUTHOR: Brendan Sasso]
Federal Communications Commission Chairman Julius Genachowski said that a goal of the upcoming auction of airwave licenses should be to boost competition among cellphone carriers. "It's very important for our innovation economy that mobile remain[s] competitive," Chairman Genachowski said. He warned that allowing industry leaders AT&T and Verizon to dominate the market would be a "very bad thing for our innovation economy." He said that thanks to the FCC's efforts, T-Mobile and Sprint are "moving up, they're getting stronger and we're seeing a healthy competitive market." He noted that T-Mobile is trying a new business model by offering contract-free plans.
benton.org/node/150896 | Hill, The
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DISH ON SOFTBANK
[SOURCE: The Hill, AUTHOR: Brendan Sasso]
Dish Network is urging regulators to closely examine SoftBank's alleged ties to bribery as they review the Japanese cellphone carrier's bid to buy Sprint-Nextel. Dish is pursuing its own competing proposal to buy Sprint. In a filing with the Federal Communications Commission, Dish noted that Masayoshi Son, the founder and CEO of SoftBank, was chairman of the board of UTStarcom Inc (UTSI) from 1995 until 2003. During that time, UTSI illegally bribed Chinese officials for telecommunications contracts, according to the Justice Department. UTSI agreed to pay a $1.5 million fine to settle the Justice Department charges in 2009. According to the settlement, UTSI admitted that it paid for vacations for Chinese officials and improperly accounted for them as "training" trips.
benton.org/node/150890 | Hill, The
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SPRINTS OFFERS
[SOURCE: Wall Street Journal, AUTHOR: Miriam Gottfried, Aaron Back]
Sprint shareholders have some serious thinking to do. On the one hand, they have SoftBank's $20.1 billion offer for a 70% stake. On the other, there is Dish Network's $25.5 billion bid for the entire company. In many ways, SoftBank's proposal, which delivers a one-time $4.9 billion cash infusion into Sprint on top of the $3.1 billion the Japanese carrier has already invested, seems to carry lower risk. While Sprint's gross debt would remain the same, the cash injection would give it more flexibility to invest in upgrading its network and allow it to participate in future deals. Dish's bid looks to be riskier. But the combined company would also have greater cash flows. Then there is the added promise of greater reward down the line. That would come if Dish-Sprint can forecast synergies worth $37 billion in today's money and successfully execute a "double play" strategy of video and voice. The latter sounds appealing. But estimating the value of synergies can involve a lot of rough math, particularly in light of the fact that Dish's bankers have yet to see Sprint's books. There is no guarantee these will pan out.
benton.org/node/150941 | Wall Street Journal | FT
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SMARTPHONES AND PRODUCTIVITY
[SOURCE: Wall Street Journal, AUTHOR: Dennis Berman]
We regard smartphones as game devices, Web browsers and messaging tools. But at heart they are like all computers before them. They are efficiency engines, a means of saving time, bridging distance, reducing cost. Yet there's something bizarre going on. Even as an estimated 130 million smartphones roam the U.S. streets, economists can't quite find them. By that I mean they can't find how these mobile devices are improving worker productivity, which computers have been doing quite ruthlessly for the last 70 years. Productivity is the reason living standards rise. It's why we have more goods and services than our grandparents could imagine. The official U.S. productivity numbers are low when compared with the stunning 3% yearly gains of the first Web era, roughly 1995 to 2004. In fact, annual productivity growth since 2004 is about 1.5%, below even the long-term average of 2.25%. It's as if a time-wasting flock of Angry Birds has buried productivity like a worm. Classically defined, an increase in productivity either reduces labor, improves output, or both. And by that measure, argues Northwestern University economist Robert J. Gordon, the iPhone "has done absolutely nothing" to improve productivity. So is there something wrong with the government numbers? Or, more intriguing, are we overestimating how these little machines can affect living standards? The answers are wonky and, inconclusive. For now, we're left in the fallible realm of impressions. Here the relevant question seems to be: Can you find an area of life and business not being affected by the devices?
benton.org/node/150937 | Wall Street Journal
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OWNERSHIP

GOOGLE’S REGULATORY CLOUDS
[SOURCE: Washington Post, AUTHOR: Craig Timberg]
Google once appeared headed for major clashes with regulators — in the United States or Europe, or both — as government officials sought to curb alleged abuses by one of the world’s most powerful and profitable technology companies. But the clouds over Google’s Silicon Valley headquarters have largely cleared over the past several months. There are many reasons for this, but the most important may be Google’s ability to learn from Microsoft’s mistakes. Major antitrust battles on both sides of the Atlantic sapped the focus of a company that once was the unquestioned titan of tech. Microsoft was slow to adapt to the Internet economy, slow to see the potential of Web search, slow to build the world-changing products that consumers have come to expect from Apple and, yes, Google. Google executives have made clear their determination to avoid a big regulatory battle. Rather than challenge government officials to a public fight, they’ve negotiated hard behind closed doors. And, so far, they’ve given enough to get regulators off their back without ceding anything essential to how Google’s businesses work.
benton.org/node/150893 | Washington Post
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CONTENT

INDECENCY POLICY
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
The Federal Communications Commission’s move under Chairman Julius Genachowski to focus on egregious indecency complaints to help get through the million-plus backlog of complaints has drawn some attention, and fire, lately, including a story on cable news April 30 and a letter from legislators to the FCC concerned about the change. CNN did a story on the public notice issued April 1 asking for public input on whether the FCC should institute that approach, a change in focus from the previous enforcement policy of pursuing fleeting nudity and profanity. "The FCC may actually loosen the rules governing profanity on network TV," said Wolf Blitzer. The story pointed out that there had been more than 90,000 comments on the FCC Web site on the FCC's public notice, with most saying it was not a good idea. And almost two dozen House Republicans -- including media content critic Frank Wolf (R-VA) -- wrote to Chairman Genachowski April 29 saying they were "deeply troubled" by the public notice. "It is imperative that the FCC maintain current indecency standards during hours when children are undoubtedly watching or listening to programming," they wrote.
benton.org/node/150943 | Broadcasting&Cable
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E-BOOKS AND DEMOCRACY
[SOURCE: New York Times, AUTHOR: Anthony Marx]
[Commentary] The information revolution raises profound questions about the future of books, reading and libraries. While publishers have been nimble about marketing e-books to consumers, until very recently they’ve been mostly unwilling to sell e-books to libraries to lend, fearful that doing so would hurt their business, which is under considerable pressure. Negotiations between the nation’s libraries and the Big Six publishers — Hachette, HarperCollins, Macmillan, Penguin Group, Random House and Simon & Schuster, which publish roughly two-thirds of the books in America — have gone in fits and starts. Today Hachette, which had been a holdout, is joining the others in announcing that it will make e-books available to public libraries. This is a big step, as it represents, for the first time, a consensus among the Big Six, at least in principle, that their e-books should be made available to library users. Over a quarter of New York City’s 8.2 million residents borrow books from the city’s three public library systems. For those who cannot afford to buy downloads, digital books from libraries are essential to improving literacy, civic engagement and the technological facility necessary for economic success. [Marx is the president of the New York Public Library]
benton.org/node/150940 | New York Times
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JOURNALISM

NEWSPAPER CIRCULATION
[SOURCE: New York Times, AUTHOR: Christine Haughney]
The nation’s newspapers suffered a slight decline in total circulation over the last six months compared with the same period the year before, new data showed, but they benefited from an increase in digital subscriptions, which now make up nearly 20 percent of all daily circulation. “Overall circulation industrywide is flat and digital is growing,” said Neal Lulofs, an executive vice president with the Alliance for Audited Media, which released the figures. “Newspapers are engaging with readers in a variety of media types wherever and whenever.” The 593 daily newspapers that were audited had a 0.7 percent daily circulation decline. The Wall Street Journal has the highest circulation at 2,378,827, a 12.3 percent jump from the same time the year before. The New York Times replaced USA Today in second place with a circulation of 1,865,318 a 17.6 percent rise from a year ago. USA Today circulation was down 7.9 percent, dropping to 1,674,306. The Los Angeles Times and New York Daily News followed in fourth and fifth places. The figures include both print and digital subscriptions. For the 519 Sunday newspapers audited, total circulation declined 1.4 percent. The New York Times ranked first with an average circulation of 2,322,429, a 15.9 percent increase from the same time the year before. The Houston Chronicle ranked second, despite a 5.8 percent decline to 1,042,389. The Los Angeles Times was third; its circulation remained flat at 954,010. The Washington Post had a 16.5 percent circulation jump to 838,014, putting it in fourth place ahead of The Chicago Tribune.
benton.org/node/150892 | New York Times
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FCC's Indecency Policy Takes Some Heat

The Federal Communications Commission’s move under Chairman Julius Genachowski to focus on egregious indecency complaints to help get through the million-plus backlog of complaints has drawn some attention, and fire, lately, including a story on cable news April 30 and a letter from legislators to the FCC concerned about the change.

CNN did a story on the public notice issued April 1 asking for public input on whether the FCC should institute that approach, a change in focus from the previous enforcement policy of pursuing fleeting nudity and profanity. "The FCC may actually loosen the rules governing profanity on network TV," said Wolf Blitzer. The story pointed out that there had been more than 90,000 comments on the FCC Web site on the FCC's public notice, with most saying it was not a good idea. And almost two dozen House Republicans -- including media content critic Frank Wolf (R-VA) -- wrote to Chairman Genachowski April 29 saying they were "deeply troubled" by the public notice. "It is imperative that the FCC maintain current indecency standards during hours when children are undoubtedly watching or listening to programming," they wrote.

Sprint Shareholders Shouldn't Rush Into Dish Network's Arms

Sprint shareholders have some serious thinking to do.

On the one hand, they have SoftBank's $20.1 billion offer for a 70% stake. On the other, there is Dish Network's $25.5 billion bid for the entire company.

In many ways, SoftBank's proposal, which delivers a one-time $4.9 billion cash infusion into Sprint on top of the $3.1 billion the Japanese carrier has already invested, seems to carry lower risk. While Sprint's gross debt would remain the same, the cash injection would give it more flexibility to invest in upgrading its network and allow it to participate in future deals. Dish's bid looks to be riskier. But the combined company would also have greater cash flows. Then there is the added promise of greater reward down the line. That would come if Dish-Sprint can forecast synergies worth $37 billion in today's money and successfully execute a "double play" strategy of video and voice. The latter sounds appealing. But estimating the value of synergies can involve a lot of rough math, particularly in light of the fact that Dish's bankers have yet to see Sprint's books. There is no guarantee these will pan out.

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