July 2013

Verizon Looks to Edge Out Competition With Six-Month Upgrade Program

Verizon is joining AT&T and T-Mobile in offering a new program that will allow customers to upgrade their phones more frequently than every two years. The plan is called Verizon Edge, and it will launch on August 25.

With Verizon Edge, you pay the full retail price of a phone, along with a month-to-month service plan. The cost of the handset is divided into 24 monthly installments, and the first payment is due at the point of sale. If, after six months, you decide you want to upgrade your phone, you can do so, as long as you’ve paid 50 percent of the unsubsidized price, and the phone is still in working condition. Once you trade in your device, all final payments are waived, you choose another handset of your liking, and start all over again. Verizon Edge is available for basic and feature phones, not just smartphones. Verizon Edge doesn’t include a finance charge, program fee or upgrade fee.

Will Apple, Google or Microsoft make one OS to rule them all?

With Microsoft's reorganization last week, a curious thing has now happened at the three companies that are the biggest players in the world of operating systems. In the last year, Apple, Google and Microsoft have all moved to put one person in charge of both their mobile and desktop operating systems. Coincidence Perhaps.

But Colin Gillis, an analyst at BGC Partners, who mentioned the trend in a recent conversation, says the shift seems to be pointing each company toward convergence some time, even if that point remains far down the road. "Do these companies want both of those operating systems?" Gillis said. "Probably not." Over time, Gillis said, as mobile hardware becomes more robust, these companies can build more features into their mobile OS. At the same time, users of desktops and laptops are growing to expect some of the mobile features on those platforms.

House Appropriations panel approves e-mail privacy amendment

The House Appropriations Committee unanimously adopted an amendment that would require certain federal agencies to obtain a warrant before seizing e-mails and other online messages.

The amendment, offered by Rep. Kevin Yoder (R-Kan.), was added to the Fiscal Year 2014 Financial Services and General Government Appropriations bill. The privacy requirement covers the Internal Revenue Service, the Securities and Exchange Commission and other regulatory agencies funded by the legislation. The Senate Judiciary Committee approved legislation earlier this year that would set a warrant-standard for all online messages. Lawmakers in the House are working on companion legislation. Under current law, government officials only need a subpoena, issued without a judge's approval, to compel Internet companies to turn over their users' private messages.

Are there really two PRISMs, or just one PRISM with NATO involvement?

If you thought the PRISM debacle couldn’t get any more convoluted, then listen up. It turns out that there are two PRISM programs… or not, in which case the German government may be heading for a fall. It depends on who you believe: the newspaper Bild or the German government.

The German federal elections are coming up and PRISM is a major issue. The opposition parties have demanded answers about what Angela Merkel’s administration knew about the Americans spying on German citizens en masse. The government is sticking to its line that only highly-targeted data-sharing takes place, in order to keep the public safe from terrorism, and that it never knew about the wider PRISM program. Bild published a major scoop, based on a document that was apparently sent by NATO to all the regional commands in Afghanistan back in 2011. This document laid out instructions for cooperation under a program called PRISM, which involved monitoring emails and phone calls, with access regulated by the U.S. Joint Worldwide Intelligence Communications System (JWICS). This document naturally made its way to the Germans, who are somewhat controversially deployed in Afghanistan and, as Bild framed it, this meant the German government is lying about its PRISM ignorance.

How We Watch TV is Changing, and the Emmy’s Just Recognized That

The Netflix original series House of Cards has scored an Emmy nomination for top drama series, the first time an online TV series has received equal recognition alongside traditional TV programming. As more and more people watch TV online, the quality of such shows is improving. Netflix has more than 35 million subscribers worldwide.

Frontier satisfies state-mandated performance goals

Three years after taking over Verizon's West Virginia landline operations, Frontier Communications officials say the company has either met or exceeded state-mandated performance goals for improving local service.

When the state Public Service Commission approved Frontier's acquisition of the Verizon network in May 2010, it imposed several conditions as part of the transaction. Those included requiring the company to invest nearly $280 million to improve service quality and increase broadband deployment by the end of 2013. Regulators also said Frontier must ensure that at least 85 percent of households in the old Verizon network have broadband access by the end of 2014. Frontier officials now say they have satisfied regulators' requirements well ahead of schedule.

At 60% ownership, is the U.S. smartphone market saturated?

Forty percent of U.S. mobile customers still use feature phones and represent an untapped market. Except for BlackBerry, churn between smart platforms is still negligible; it's the non-smartphone makers who are shedding customers. And even at 60% penetration, the rate of smartphone adoption is not slowing in any perceptible way. Worldwide, 4 billion people are about to switch from feature phones to smartphones.

The Case for American Propaganda

[Commentary] This week saw yet another manifestation of our national paranoia about The Government.

Late in 2012, Congress passed the Smith-Mundt Modernization Act, and in January 2013, President Obama signed it into law. The act repealed a Cold War-era prohibition on disseminating government information produced for foreign audiences inside the United States. As of July 1, when the repeal took effect, radio and TV programs designed for non-U.S. audiences, such as those produced by Voice of America, can now be re-broadcast in the United States. The sky is falling! Left and right are temporarily united over the horror of "government propaganda" hitting the U.S. airwaves. Okay, I guess I get it. With so much idiotic privately produced propaganda already widely available here in the U.S. of A., who needs government propaganda? Our private sector already does a fine job of disseminating inflammatory misinformation, thank you very much. I mean: We already have Fox News, Matt Drudge, and TruthOut. We can already find plenty of media outlets that purvey shamelessly one-sided, irresponsible garbage. Why muddy the waters by adding government-funded news?

What Will It Take To Make Cheap Over-The-Top TV Viable?

[Commentary] The problem lies in the definition of what’s anti-competitive. In a digital universe of nearly unlimited channel capacity, programmers may be making it difficult for new distributors to enter the market, but they’re not hurting their own competitors, ie. other programmers. Therefore past case law has determined that the practice of “tying,” as bundling is termed for antitrust purposes, is legal for TV programmers just as it’s legal to bundle together short stories into collections or songs into albums.

Of course, you can buy songs individually. While many artists were initially reluctant to make their songs available a la carte on iTunes, they knew getting paid 70 cents or $1.40 for them was better than having them pirated and getting nothing. Programmers and the media conglomerates that own them make the expected noises about piracy of television shows, but press them a little and they’ll admit they don’t take it all that seriously. The current model is just too profitable for them to risk changing just to catch the extra leakage of demand that piracy satisfies. That may change as cord-cutting accelerates, and as new services like Aereo make it easier to enjoy a relatively satisfying TV experience for far, far less than it costs to get cable or satellite

Multistakeholder Meetings to Develop Consumer Data Privacy Code of Conduct Concerning Mobile Application Transparency (July 2013)

National Telecommunications and Information Administration
Department of Commerce
July 25, 2013
1:00 p.m. to 5:00 p.m., Eastern Daylight Time

The July 25, 2013 meeting is part of a series of NTIA convened multistakeholder discussions concerning mobile application transparency. Stakeholders will engage in an open, transparent, consensus driven process to develop a code of conduct regarding mobile application transparency.