May 28, 2013 (Chilling Effect)
BENTON'S COMMUNICATIONS-RELATED HEADLINES for TUESDAY, MAY 28, 2013
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GOVERNMENT & COMMUNICATIONS
Press Sees Chilling Effect in Justice Department Inquiries
DOJ Notified News Corp. About Phone-Record Seizure
Justice asked judge to keep Fox reporter in the dark over tracked e-mail
Groups Want DOJ Answers on Targeting Journalists
Sen Paul offers bill to protect privacy of electronic communications [links to web]
WIRELESS/SPECTRUM/TELECOM
Comment Cycle Established For Technology Transitions Policy Task Force Public Notice Regarding Potential Trials - public notice
Verizon goes on offensive in Voice Link deployment
Sen Vitter trades fire with 'Obama phone' firm
Will Sprint-SoftBank Get Tangled in the Flag? [links to web]
Google to Fund, Develop Wireless Networks in Emerging Markets
OWNERSHIP
News Corporation Board Approves Split of Company
Will Sprint-SoftBank Get Tangled in the Flag? [links to web]
Inside Amazon's tax fight
TELEVISION
Over-The-Air’s Silver Lining Also Has a Looming Cloud - editorial
EMERGENCY COMMUNICATIONS
Emergency Alerting: Capabilities Have Improved, but Additional Guidance and Testing Are Needed - research
CHILDREN AND MEDIA
Experimental Evidence on the Effects of Home Computers on Academic Achievement among Schoolchildren [links to web]
The Truth About kids and Social Media - op-ed [links to web]
ELECTIONS AND MEDIA
Silicon Valley isn’t buying GOP’s data plans
RESEARCH
Confidential report lists U.S. weapons system designs compromised by Chinese cyberspies
FCC Announces Release of Critical Information Needs Research Design - public notice
These 12 technologies will drive our economic future
LOBBYING
Apple Pumping More Money Into Lobbying [links to web]
PHILANTROPY
Laurene Powell Jobs and Anonymous Giving in Silicon Valley
AGENDA
The Big Items on the FCC's To-Do List
Chairman Rockefeller Still Targeting June for Wheeler Hearing [links to web]
STORIES FROM ABROAD
Brussels probes Apple’s iPhone tactics
Sony’s Bread and Butter? It’s Not Electronics [links to web]
Europeans Press China Over Trade in Telecom
GOVERNMENT & COMMUNICATIONS
CHILLING EFFECT OF INVESTIGATION
[SOURCE: New York Times, AUTHOR: Christine Haughney]
President Obama’s conciliatory gesture toward the press — a review of Justice Department investigations involving journalists — struck some national security reporters as closing the door after the sources have already bolted. In announcing the review in his speech, the President said he was troubled that recent investigations, which involved the extensive tracking of a Fox News reporter, James Rosen, and the seizing of phone records at The Associated Press, “may chill the investigative journalism that holds government accountable.” Journalists say that chill has already set in. Jeremy Scahill, who writes about national security for The Nation, said that some sources who used to agree to encrypted chats and off-the-record conversations have recently stopped feeling comfortable with these terms. “At times it seems that being a Luddite may be the safest way to do serious national security reporting in a climate where there appears to be an intensifying war on serious journalism,” said Scahill.
benton.org/node/152646 | New York Times
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NEWS CORP NOTIFIED
[SOURCE: Wall Street Journal, AUTHOR: Devlin Barrett]
The Justice Department notified the parent company of Fox News more than two years ago about its seizure of phone records belonging to one of its reporters, a Fox official said. The parent company, News Corp, didn't tell Fox about the notification, the Fox official said. This new detail helps clear up a mystery at the heart of the continuing controversy over the government's actions. Over the past week, officials at Fox have denied they were notified of the phone-record subpoenas, while law-enforcement officials insisted they were. It appears the reason for the discrepancy was that the notice was sent to News Corp.
benton.org/node/152645 | Wall Street Journal
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JUSTICE ASKED FOR SECRECTCY
[SOURCE: The Hill, AUTHOR: Jordy Yager]
The Justice Department pleaded with a federal judge to keep a Fox News reporter indefinitely in the dark as it tracked his e-mail in a national security leaks case. A new set of exhibits unsealed and made public this week show U.S. Attorney Ron Machen argued in 2010 that the traditional 30-day notice period did not apply to Fox News reporter James Rosen. Justice wanted to secretly monitor Rosen’s Gmail account. “Where, as here, the government seeks such contents through a search warrant, no notice to the subscriber or customer of the e-mail account is statutorily required or necessary,” Machen wrote in the June 2010 motion. "Thus, this court's indication on the face of the warrant that delayed notice of 30 days to the customer and subscriber was permissible was unnecessary." Machen, through a separate court order, also successfully stopped Google from telling Rosen that the government was spying on his e-mail account. Machen demanded to see all of Rosen’s e-mail records, including his deleted messages, e-mails in his trash folder and all attachments sent to and from the reporter. The government successfully argued to keep the search warrant under seal for 18 months before making it public in November 2011.
benton.org/node/152644 | Hill, The
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LETTER TO JUSTICE
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
Close to five dozen groups have demanded that Attorney General Eric Holder provide a "full and transparent" account of the Department of Justice's targeting of journalists and whistleblowers, in particular its subpoena of Associated Press phone records in a whistleblower investigation and reports it had seized phone records of a Fox reporter. Craig Aaron, president of Free Press, one of 57 groups that sent a letter to AG Holder expressing their concern, accused Justice of an "appalling abuse of press freedom." Among those also signing on to the letter included ACLU, Common Cause, the Communications Workers of America, The Newspaper Guild, Prometheus Radio Project, Society of Professional Journalists, Sunlight Foundation and the Writers Guild of America, East.
benton.org/node/152643 | Broadcasting&Cable
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WIRELESS/SPECTRUM/TELECOM
COMMENT CYCLE ESTABLISHED FOR TECHNOLOGY TRANSITIONS POLICY TASK FORCE PUBLIC NOTICE REGARDING POTENTIAL TRIALS
[SOURCE: Federal Communications Commission, AUTHOR: Public Notice]
On May 10, 2013, the Federal Communications Commission’s Technology Transitions Policy Task Force (Task Force) released a public notice proposing to move forward with real-world trials to obtain data that will be helpful to the FCC in determining what policies are appropriate to promote investment and innovation while protecting consumers, promoting competition, and ensuring that emerging all-Internet Protocol (IP) networks remain resilient. Comments will be due by July 8, 2013, and reply comments will be due by August 7, 2013.
benton.org/node/152622 | Federal Communications Commission
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VERIZON’S VOICE LINK PLAN
[SOURCE: Fierce, AUTHOR: Samantha Bookman]
As criticism mounts over Verizon's move to replace its copper-based voice lines with its new Voice Link service in areas of New York and New Jersey impacted by Hurricane Sandy, the carrier went to work explaining the logic behind its actions. "In [areas impacted by] Hurricane Sandy the copper infrastructure was wiped out," said Tom Maguire, senior vice president of national operations support, who leads the Voice Link program at Verizon. "There are 500 year-round residents on [the western portion] of Fire Island. In New Jersey, there are 800 customers who also don't have access to copper." With approximately 1,200 people completely affected on Fire Island (NY) and Montoloking (NJ), Verizon decided not to replace the destroyed copper infrastructure. "Reliability, scalability--you can't do a lot of things on copper, it isn't the best investment to make," said Maguire. Fiber was also nixed from the list of options due to its cost versus the number of customers served. The population of Fire Island fluctuates from 500 year-round residents to more than 10,000 in the summer season.
benton.org/node/152620 | Fierce
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SEN VITTER VS TRACFONE
[SOURCE: The Hill, AUTHOR: Brendan Sasso]
Sen. David Vitter (R-LA) and TracFone Wireless, a pre-paid cellphone carrier, are hurling accusations at each other over a federal phone subsidy program for the poor. The company has claimed that Sen Vitter is trying to gut a program that was "born out of" Hurricane Katrina, while Sen Vitter has accused TracFone of profiting from a wasteful government hand-out. The program, called Lifeline, has been pejoratively referred to as the "Obama phone" program, although it began long before President Barack Obama took office. It had its genesis as a subsidy for landline phones in 1985 and expanded to cover cellphones in 2008, during the George W. Bush administration. The spat began when Sen Vitter and other GOP senators introduced a bill earlier this month to end a provision that relates to the cellphones portion of the fund. Last week, the company ran an advertisement in the New Orleans Times-Picayune attacking Sen Vitter for his efforts to end the program. In response, Vitter held a press conference in New Orleans to say a sardonic "thank you" to TracFone for paying for an ad that draws attention to "this out-of-control, fraud-ridden entitlement program.” He claimed the ad was "misleading" for tying Katrina to the Lifeline program, noting that the FCC did not expand the program to cellphones until three years after the hurricane. He also noted that TracFone CEO F.J. Pollak and his wife have donated to Democratic campaigns.
benton.org/node/152640 | Hill, The
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GOOGLE TO FUND WIRELESS NETWORKS
[SOURCE: Wall Street Journal, AUTHOR: Amir Efrati]
Google is deep into a multipronged effort to build and help run wireless networks in emerging markets as part of a plan to connect a billion or more new people to the Internet. These wireless networks would serve areas such as sub-Saharan Africa and Southeast Asia to dwellers outside of major cities where wired Internet connections aren't available, said people familiar with the strategy. The networks also could be used to improve Internet speeds in urban centers, these people said. Google plans to team up with local telecommunications firms and equipment providers in the emerging markets to develop the networks, as well as create business models to support them, these people said. It is unclear whether Google already has lined up such deals or alliances. In some cases, Google aims to use airwaves reserved for television broadcasts, but only if government regulators allowed it, these people said. The company has begun talking to regulators in countries such as South Africa and Kenya about changing current rules to allow such networks to be built en masse. Some wireless executives say they expect such changes to happen in the coming years.
benton.org/node/152642 | Wall Street Journal
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OWNERSHIP
NEWS CORP SPLIT
[SOURCE: New York Times, AUTHOR: Amy Chozick]
The board at News Corporation approved a proposed split into two companies, and authorized a $500 million stock buyback for investors in the soon-to-be-formed publishing business. It also announced appointments to the board for both of the companies. The company is expected to complete its separation on June 28, with publishing assets like The Wall Street Journal, The New York Post and HarperCollins, and a handful of Australian pay television units, forming a company that will retain the name News Corporation. Fox Broadcasting, Fox News, FX and the Hollywood film and television studio will form an entertainment company to be called 21st Century Fox. The announcement may do little to dispel criticism that the News Corporation board is too heavily made up of members of the Murdoch family. After the division Rupert Murdoch will serve as chairman of both companies. He will maintain his role as chief executive of 21st Century Fox. Murdoch’s two sons, James and Lachlan, will be directors of both companies. But the boards will also include new faces. Robert Thomson, as chief executive of the new News Corporation, will join the publishing company’s board, as will Ana Paula Pessoa, a partner at the public relations firm Brunswick Group; Masroor Siddiqui, managing partner of the investment firm Naya Management; and John Elkann, chairman of Fiat. Joel I. Klein, chief executive of News Corporation’s fledgling Amplify education division, will maintain a role on the company’s board. Chase Carey, president and chief operating officer of 21st Century Fox, will join several new directors — Delphine Arnault, a French businesswoman and deputy general manager at Christian Dior Couture; Jacques Nasser, a former chief executive of the Ford Motor Company; and Robert S. Silberman, executive chairman of Strayer Education Incorporated — on the entertainment company’s board.
benton.org/node/152648 | New York Times
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AMAZON’S TAX FIGHT
[SOURCE: Fortune, AUTHOR: Peter Elkind]
For many years, Amazon enjoyed a crucial leg up compared to traditional retailers like Barnes & Noble, Sears, and Wal-Mart: The e-tailer didn't charge sales taxes to its customers. The result: Amazon benefited from as much as a 10% pricing advantage over its rivals, one key reason behind the company's meteoric rise. "It's no exaggeration to say you can't fully appreciate the rise of Amazon without understanding this fight," write Fortune's Peter Elkind and Doris Burke in the cover story for the magazine's new issue. Amazon's (not so secret) War on Taxes reveals how, for more than 15 years, Jeff Bezos's company successfully battled to preserve this edge -- demanding, wheedling, suing, threatening, and negotiating -- and how new alliances and strategies among Amazon's (AMZN) enemies have finally begun turning the tide. (Earlier this month, the U.S. Senate passed a bill that would close the Internet tax loophole for good.) "There's a lot at stake," Fortune declares in this in-depth narrative. "For state and local governments: an estimated $11.4 billion a year in desperately needed cash for streets, schools, police, and parks. For Amazon and arch competitors like Wal-Mart: the struggle for retail primacy. For American consumers: what they pay and how they shop."
benton.org/node/152618 | Fortune | GigaOm
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TELEVISION
OVER-TE-AIR’S FUTURE
[SOURCE: TVNewsCheck, AUTHOR: Harry Jessell]
[Commentary] One of the great things about broadcasting is broadcasting — the over-the-air (OTA) technology that lets anyone, anywhere tune in for free (assuming the proper antenna). OTA gives broadcasters an edge over all cable channels, which are restricted to the subset of TV homes that choose to subscribe to cable or satellite. Because broadcasters reach virtually every TV home, they continue to draw the biggest TV audiences. They remain the favorites of the mass marketers as the returns from the upfront ad dealing will prove once again in the coming weeks. But as station executives plot strategy for the next 10 years, they need to consider the role that over-the-air broadcasting — especially in the advanced, more potent form contemplated by ATSC 3.0 — will play. In the meantime, they need to find the sweet spot. They need to encourage some cord-cutting so as to maintain a high percentage of OTA-only homes and their advantage over cable channels. At the same time, they don't want the percentage to go so high that it starts really irritating cable and satellite operators and cutting significantly into their retransmission revenue stream.
benton.org/node/152639 | TVNewsCheck
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EMERGENCY COMMUNICATIONS
EMERGENCY ALERTING
[SOURCE: Government Accountability Office, AUTHOR: Mark Goldstein]
An effective system to alert the public during emergencies can help reduce property damage and save lives. The Government Accountability Office was asked to review recent efforts to implement the Integrated Public Alert and Warning System (IPAWS) and improve the Emergency Alert System (EAS). GAO examined: (1) how IPAWS capabilities have changed since 2009 and what barriers, if any, affect its implementation and (2) results of the nationwide EAS test and federal efforts to address identified weaknesses. GAO reviewed Federal Emergency Management Agency (FEMA), Federal Communications Commission (FCC), and other documentation, and interviewed industry stakeholders and alerting authorities from six locations that were selected because they have public-alerting systems in addition to EAS and experienced problems during the nationwide EAS test. GAO recommends that FEMA work in conjunction with FCC to establish guidance for states to fully implement and test IPAWS components and implement a strategy for regular nationwide EAS testing. In response, the Department of Homeland Security (DHS) concurred with GAO’s recommendations and provided examples of actions aimed at addressing the recommendations. [GAO-13-375, April 24]
benton.org/node/152619 | Government Accountability Office
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ELECTIONS AND MEDIA
GOP DATA PLAN
[SOURCE: Politico, AUTHOR: Tarini Parti, Michelle Quinn]
Dick Boyce, once a partner at Bain & Co. and the former CEO of J.Crew, launched Liberty Works with the goal of helping Republicans catch up to Democrats in the digital data world. But he’s having trouble winning over Silicon Valley. Liberty Works was hired to create an open-source voter data platform, meaning outside groups and campaigns would have access to the information for outreach and fundraising and also be able to build on it with their own applications. The RNC describes the goal for the shared data as “iPhone-like.” Since the RNC announcement on May 1, Liberty Works has gotten off to a shaky start. Top engineers in Silicon Valley who have been looking for ways to help Republican campaigns question Boyce’s vision and say the company’s outreach is underwhelming — as are its salary offers.
benton.org/node/152661 | Politico
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RESEARCH
CYBERSECURITY BREACHES
[SOURCE: Washington Post, AUTHOR: Ellen Nakashima]
Designs for many of the nation’s most sensitive advanced weapons systems have been compromised by Chinese hackers, according to a report prepared for the Pentagon and to officials from government and the defense industry. Among more than two dozen major weapons systems whose designs were breached were programs critical to U.S. missile defenses and combat aircraft and ships, according to a previously undisclosed section of a confidential report prepared for Pentagon leaders by the Defense Science Board. Experts warn that the electronic intrusions gave China access to advanced technology that could accelerate the development of its weapons systems and weaken the U.S. military advantage in a future conflict. The Defense Science Board, a senior advisory group made up of government and civilian experts, did not accuse the Chinese of stealing the designs. But senior military and industry officials with knowledge of the breaches said the vast majority were part of a widening Chinese campaign of espionage against U.S. defense contractors and government agencies.
benton.org/node/152663 | Washington Post
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OFFICE OF COMMUNICATIONS BUSINESS OPPORTUNITES ANNOUNCES RELEASE OF CRITICAL INFORMATION NEEDS RESEARCH DESIGN
[SOURCE: Federal Communications Commission, AUTHOR: Public Notice]
The Federal Communications Commission’s Office of Communications Business Opportunities (OCBO) announced the release of the Research Design for the Multi-Market Study of Critical Information Needs (Research Design). The Research Design and subsequent studies are intended to inform the Commission’s 2012 report to Congress on barriers to participation, also known as the Section 257 Report. Section 257 of the Communications Act of 1934, as amended, requires that the Commission review and report to Congress on: (1) regulations prescribed to eliminate market entry barriers for entrepreneurs and other small businesses in the provision and ownership of telecommunications and information services or in the provision of parts or services to providers of those services and that can be prescribed consistent with the public interest, convenience and necessity; and (2) proposals to eliminate statutory barriers to market entry by those entities, consistent with the public interest, convenience, and necessity.
The public is also invited to submit written comments in response to the research design. A copy of the research design is available on the OCBO website. Interested parties may file written comments in FCC Docket 12-30 not later than July 23, 2013. Comments may be filed using the FCC’s Electronic Comment Filing System (ECFS).
FCC Chairwoman Mignon Clyburn said, “The FCC has a duty to make sure that the industries it regulates serve the needs of the American public no matter where they live or what financial resources they have. The research design we announce today is an important next step in understanding what those needs are, how Americans obtain the information critical to their daily lives in a dynamic technological environment, and what barriers exist in our media ecologies to providing and accessing this information.”
benton.org/node/152649 | Federal Communications Commission | Social Solutions International | Chairwoman Clyburn
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12 TECHNOLOGIES FOR THE FUTURE
[SOURCE: Washington Post, AUTHOR: Neil Irwin]
The things that will determine standards of living a generation from now have almost nothing to do with this month’s jobs report or the Federal Reserve’s latest policy meeting. Those determinants, instead, depend on companies’ innovations — in particular, whether those innovations turn out to have major economic consequences. Researchers at the McKinsey Global Institute, the in-house think tank of the giant consulting firm, have a new study in which they have taken their best shot at predicting exactly that. They have scoured the range of potential disruptive technologies and done their best to estimate how transformative each might be for the U.S. economy. Their results are hardly definitive — we can’t know what the future holds — but represent a serious effort by some smart people to quantify what appear to be some major forces shaping our technological future. And the results have some important implications for how we think about innovation. Here’s the list the McKinsey researchers came up with, along with their (very rough) estimates of how much economic potential they hold.
Mobile Internet
Automation of knowledge work [Editor’s note: Hey! That’s me you’re talkin’ about!]
Internet of Things
Cloud
[more at the URL below]
benton.org/node/152626 | Washington Post
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PHILANTROPY
ANONYMOUS GIVING
[SOURCE: New York Times, AUTHOR: Claire Cain Miller]
In Silicon Valley, people get very rich, very fast, often when they are very young. As a result, they are often criticized for not giving away enough of that money. There are signs that is changing, as people like Mark Zuckerberg become more philanthropic. But many in tech are still in their 20s, and say they are working long days running companies and trying to improve the world with their products, and will be able to focus on philanthropy later in life. There is another story line, though, one brought to light by the tale of Laurene Powell Jobs. She is the widow of Steve Jobs, one of the tech titans who received the most criticism for a lack of philanthropy. Yet for more than two decades, his family has been giving away money — anonymously. One of the main ways she is able to do that is because of the way she has structured her organization, Emerson Collective. It is an LLC, like a small business, instead of a tax-exempt 501(c)(3), like a charitable organization or foundation. That means that Emerson can make grants, for-profit investments and political donations — and does not have to publicly report its donations as a foundation does.
benton.org/node/152630 | New York Times
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AGENDA
FCC AGENDA
[SOURCE: AdWeek, AUTHOR: Katy Bachman]
Did anyone really think that Julius Genachowski wouldn't leave the media ownership rules for the next guy? Or the always-in-court, nearly impossible to legally defend broadcast indecency rules? Even with 11th-hour pushes to take on both, it was clear throughout Genachowski’s tenure as Federal Communications Commission chairman that his heart was in expanding broadband and wireless services. While he made headway in transforming the FCC into the Federal Broadband Commission, there’s still a lot to be done by the next chair. And while Mignon Clyburn may have broken the glass ceiling as acting chairwoman, she’s unlikely to take on anything controversial, leaving it all for nominee (ex-cable/wireless lobbyist) Tom Wheeler, whose Senate confirmation likely won’t move until September. Here’s what Genachowski left on his plate: 1) Spectrum Auctions, 2) Media Ownership, 3) Broadcast Indecency, and 4) Network Neutrality.
benton.org/node/152664 | AdWeek
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STORIES FROM ABROAD
APPLE PROBE IN EU
[SOURCE: Financial Times, AUTHOR: Alex Barker, James Fontanella-Khan]
Brussels is investigating whether Apple is muscling out rival smartphone makers from the European market with anti-competitive iPhone sales tactics and technical restrictions on the handset. The scrutiny adds to the pressure Apple is facing from government regulators, coming in the week that US senators questioned Apple chief executive Tim Cook for the technology company’s tax accounting practices. According to a questionnaire sent to several EU mobile network operators, the European Commission’s probe is focusing on distribution terms that might favor Apple by ensuring no rival can secure a better sales deal.
benton.org/node/152658 | Financial Times
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TELECOM TRADE AND CHINA
[SOURCE: New York Times, AUTHOR: Kevin O’Brien]
On May 17, the European trade commissioner, Karel De Gucht, accused Huawei and another Chinese equipment maker, ZTE, of violating the antidumping and subsidies laws of the European Union. De Gucht called for negotiations between the European Union and China to avoid an investigation that could lead to punitive customs duties. Now the two sides appear set to meet in an attempt to work out their differences. China has asked that De Gucht hold an informal meeting with its vice commerce minister, Zhong Shan, in Brussels. “It appears that the commission is using the telecom equipment situation as some kind of a stick and bargaining chip against China,” said Stuart Newman, an antidumping expert at the Foreign Trade Association, a Brussels group that represents European trade associations. Newman said the Europe-China trade relationship had become more difficult over the last two years, driven by disputes over solar panels and now, telecom equipment.
benton.org/node/152659 | New York Times
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