August 2013

Viacom-Sony Revelation Reeks of Hidden Agendas

[Commentary] If the pay-TV universe can be thought of in terms of world wars, we may have just witnessed the assassination of Archduke Franz Ferdinand of Austria. The planet didn’t know it at the time, but that 1914 shooting essentially precipitated World War I. Standing in for the archduke almost a century later is a reported pact that will see Sony license the collective cable channels of Viacom for a new broadband-delivered TV service expected to launch by the end of the year.

If this deal is real, the entrenched triumvirate of cable, satellite and telco distributors have essentially received a declaration of war from what may be just the first of a new breed of challengers that could include Intel, Google and Apple. But it’s a big “if.” Not only are neither Sony nor Viacom officially acknowledging the pact, but Sony has yet to utter a word of confirmation that its virtual-MSO service even exists. Google and Apple’s own TV plans are far from concrete; only Intel has been public about its intent, which hasn’t scotched doubts that the chipmaker will actually make it to market.

FCC delays AT&T's Alltel buyout over fears it could leave prepaid customers behind

The Federal Communications Commission has delayed approving AT&T's January purchase of Atlantic Tele-Network's (ATNI) Alltel retail operations while the companies hammer out plans to move over the subscriber base.

In a statement, the FCC says it's stopping the clock on an informal 180-day review period, 175 days into the investigation. The problem, it says, is that it hasn't received details about how AT&T will help Alltel's prepaid customers move onto a new network, "despite several Commission staff follow-up conversations about the importance of transitioning prepaid customers." AT&T released a statement saying:

"AT&T is extremely disappointed at the FCC delay today on this small transaction. AT&T is ready, willing, and able to make significant network investments in these rural territories to bring HSPA+ and LTE services to Allied's customers, an investment that will not occur but for this transaction. AT&T has actively worked to address FCC concerns and will continue to work with the Commission until all issues are resolved."

Latest Pew Study Shows 70 Percent of US Has Broadband. But Access Is Still Unequal

[Commentary] Pew released survey results showing that the percentage of Americans with home “high speed broadband” connections has ticked up from 66 to 70 percent since April 2012. Pew calls this a “small but statistically significant rise.” The news of an overall rise in “high-speed broadband” adoption will likely be trumpeted by America’s giant communications companies and policymakers as the bright spot: “We’re not doing so badly!” But before we start celebrating, it’s a good idea to look closely at the results.

For starters, Pew’s results demonstrate that the Digital Divide is persistent, with close correlations between socioeconomic status and home Internet access. The report is also a reminder that policymakers use the words “high-speed broadband” to include everything other than dialup access, which is far too broad a definition. It’s telling that at least 83 percent of people with smartphones also have a high-speed Internet access connection at home — because of data caps and high-volume data like HD video, these technologies complement, and don’t replace, one another. If these services were affordable, everyone would have both. But the marketplace for high-capacity (200 GB per month), high-download speed (100 Mbps per month) wired connections is increasingly dominated by a series of local cable monopolies that can charge whatever they want. Bottom line: As a result of consolidation and deregulation, many Americans pay too much for Internet access services that are second-class — because they aren’t fiber to the home — and not enough Americans can afford service. According to the report, almost 90 percent of college graduates have high-speed Internet access at home, as do households earning more than $75,000. Compare that to only 37 percent of those who have not completed high school — as well as 54 percent of households with income less than $30,000 — that have such access. Pew points out that many blacks and Latinos have smartphones — bringing their “high-speed broadband” adoption numbers almost equal to whites – if smartphone access is included in “broadband.”

[Susan Crawford is currently a professor at the Cardozo School of Law and an adjunct professor at the School of International and Public Affairs at Columbia University]

Cable monopolies hurt consumers and the nation

[Commentary] Choice and competitiveness are the casualties when big firms such as Time Warner and Comcast have no motive to upgrade speed or capacity. The filthy little secret of home and business Internet data services in the United States is that the vast majority of Americans receive them from their local monopoly cable provider, the two largest of which are the increasingly rapacious and indolent Comcast and Time Warner Cable.

"Cable has won; it's a monopoly now," Susan Crawford, telecommunications expert at New York's Cardozo School of Law said. "People are just waking up to that fact." More than 80% of new subscribers to high-speed Internet service are going with their local cable providers. It's not because they think those providers are just grand; it's because in most of the country there's no choice. Because local cable service is a monopoly almost everywhere, fiber companies such as Verizon and AT&T, which have the technology to bring you higher speeds, won't spend the money to compete.

Gannett cuts jobs at some local papers

Gannett, owner of 82 daily newspapers and 23 television stations, confirmed that some of its local papers have cut staff.

"Some of our community publishing sites are making cuts to align their business plans with local market conditions," company spokesman Jeremy Gaines said. The layoffs, totaling about a couple of hundred jobs, were revealed at many of the company's local newspapers over the last 30 days. Jobs were cut both in newsrooms and business operations. Gannett also publishes USA TODAY, which has not been affected by the layoffs.

Democratic Whip Hoyer met with Facebook's Sandberg

Rep. Steny Hoyer (D-MD), the House minority whip, met with Facebook Chief Operating Officer Sheryl Sandberg and other Silicon Valley executives in a tour through California. Sandberg pressed Rep Hoyer on the need for Congress to pass immigration legislation.

"Sheryl is very interested and very focused on immigration reform," he said. Technology companies are lobbying Congress to allow more high-skilled immigrants into the country, saying legislation is critical for them to be able to stay globally competitive. Hoyer's trip was also partially to discuss the policy issues facing tech companies and partially to raise money for the Democratic Party, he said.

US judge wants external monitor for Apple in e-books case

US District Judge Denise Cote in Manhattan said that she plans to require Apple to hire an external monitor, something the company considers unnecessary.

Judge Cote suggested a final injunction would be narrower than what the US Department of Justice has been seeking, and would not restrict Apple's agreements with suppliers of other types of content such as movies, music and TV shows. "I want this injunction to rest as lightly as possible on how Apple runs its business," Judge Cote said at a court hearing. Poised to issue an injunction soon, she said a monitor would be necessary, after Apple had failed to show it learned its lesson from its "blatant" violations of antitrust law. The monitor, she said, would likely be installed to review Apple's internal antitrust compliance program and procedures and recommend changes, and also required annual antitrust training for employees in Apple's e-books and content businesses. Apple had vigorously contested hiring a monitor, saying in court papers it would be "extremely costly and burdensome."

Who’s your new mobile carrier? How ’bout Wi-Fi?

Almost two years ago, Republic Wireless launched with a crazy plan to offer phones that would use Wi-Fi as their default network, sending any requests outside of Wi-Fi over the Sprint 3G network. The program started with a $19 monthly plan and an older model Motorola smartphone using a custom version of Android. Today almost 90 percent of Republic’s data traffic goes over Wi-Fi, leaving 11.5 percent traveling over Sprint’s 3G network. While Republic is a niche carrier for the budget conscious that don’t mind a limited selection of phones, it’s also at the forefront of a shift in telecommunications that will not only happen, but needs to happen. Eventually, instead of thinking about which carrier you want to use, you’ll just think about Wi-Fi.

The Future of Broadband: Why Fix It if It's Not Broken

[Commentary] The Internet policy prescription outlined by the Clinton Administration has been working. Unlike so many points of debate today, Democrats and Republicans have continued this concept that continues to provide the right prescriptions today.

The Progressive Policy Institute and economist Ev Erlich, former Undersecretary of Commerce in the Clinton administration, outline an agenda that would return broadband policy to its progressive roots by: "(F)inishing the job of creating a truly national high-speed network, using the remarkable capabilities of broadband to improve education, health care, government, and other social sectors, creating the terms on which more connectivity can be created (for example, liberating spectrum), and protecting the individual right to privacy using both legal means and market forces." What do all of these policies have in common? They will deliver real benefits to Americans in both urban to rural America. Expanding broadband availability and improving adoption rates should be at the heart of any progressive broadband policy agenda.

Ehrlich also advises progressives to keep their eye on the ball and not let debates over divisive issues like "net neutrality" distract from more important goals, as this issue "does nothing to address the leading obstacles to a ubiquitous broadband Internet: Indifference and the absence of computers."

[Eva Clayton is a former member of Congress who represented eastern North Carolina (1992-2003), and former Assistant Director General of the UN Food and Agriculture Organization]

A Key Element of SOPA Is Back

A key element of the Stop Online Piracy Act (SOPA) that was shot down by popular dissent in 2012 is back.

It is reemerging in a report from the Commerce Department’s Internet Policy Task Force -- and protesters are back on We the People. The Commerce proposal would make it a felony to stream copyrighted works without permission. That might include the parody and homage music videos that clog the pores of YouTube A petition to “Stop SOPA 2013” has received more than 88,000 signatures since it was posted August 22 and is well on its way to acquiring the 100,000 signatures necessary for an official White House response.