October 2013

October 1, 2013 (NSA stores metadata of millions of web users for up to a year)

BENTON'S COMMUNICATIONS-RELATED HEADLINES for TUESDAY, OCTOBER 1, 2013

Today’s busy agenda http://benton.org/calendar/2013-10-01/


AGENDA/BUDGET
   FCC Announces Tentative Agenda for October Open Meeting - press release
   Government Social Media Feeds Will Go Dark During a Shutdown [links to web]
   Furloughed Feds May Have to Turn in Cellphones, Other Mobile Devices [links to web]
   Tech agencies brace for shutdown [links to web]

GOVERNMENT & COMMUNICATIONS
   NSA stores metadata of millions of web users for up to a year, secret files show
   Senate to move on NSA legislation
   Feds Targeted Snowden’s Email Provider the Day After NSA Whistleblower Went Public
   White House Defends NSA Amid Social Mapping Report [links to web]
   Silicon Valley wonders who is behind mystery NSA billboard [links to web]
   A CEO who resisted NSA spying is out of prison. And he feels ‘vindicated’ by Snowden leaks. [links to web]
   Tech giants ask Congress to move quickly on NSA transparency bills [links to web]
   Why the Internet Infrastructure Coalition is Essential in the Post Snowden World - press release [links to web]
   Police should be able to seize a suspect’s phone — sometimes - op-ed [links to web]

INTERNET/BROADBAND
   Broadband Customers Motivated by Price, Not Speed
   AT&T's Ultrafast Internet to Rival Google's
   Hey look, Google Fiber is going to go live in Provo in October [links to web]

SPECTRUM/WIRELESS
   Broadcasters to FCC: Taking Time To Get Auction Reimbursement Right is Key [links to web]
   Rep. Eshoo: FCC Needs To Better Sell Auctions To Broadcasters [links to web]
   FCC Stays the Course on Digital Transition for LPTV/Class A Stations - analysis
   Wi-Fi Fight Pits Car Makers Against Cable Companies
   Apple to pay $40 to iPad 3G owners shut out of all-you-can-eat data plans

TELEVISION/RADIO
   Interrupting TV's M&A Broadcast
   Broadcasters to FCC: Taking Time To Get Auction Reimbursement Right is Key [links to web]
   Rep. Eshoo: FCC Needs To Better Sell Auctions To Broadcasters [links to web]
   FCC Stays the Course on Digital Transition for LPTV/Class A Stations - analysis
   Radio stations would pay for music under House bill

CONTENT
   Defining and Demanding a Musician’s Fair Shake in the Internet Age
   Cloud Storage and TV Antennas Go to Court - op-ed
   You Might Be Able to Pay for HBO Without Paying for Cable. But You’re Still Going to Pay the Cable Guy. [links to web]
   Social Media Transforms the Way Chicago Fights Gang Violence [links to web]
   A La Carte Journalism: Where People (and Reporters) Set the Agenda - op-ed [links to web]

ADVERTISING
   FTC's Jessica Rich Lays Out Ambitious Ad Enforcement Agenda
   Nielsen Completes Acquisition of Rating Rival Arbitron [links to web]
   Phony Web Traffic Tricks Digital Ads [links to web]

TELECOM
   FCC Proposes $14.4 Million Forfeitures to Protect Lifeline Service - press release

EDUCATION
   '1:X Computing' Aims to Tailor Digital Tools to Learning Tasks [links to web]

STORIES FROM ABROAD
   Google moves nearer to search deal with EU
   How Britain’s new cyberarmy could reshape the laws of war
   Rogers announces high-speed roaming agreement with US carrier AT&T [links to web]

MORE ONLINE
   Here's Something Congress Can Agree On: Helium [links to web]
   Friends Without Benefits [links to web]

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AGENDA/BUDGET

FCC ANNOUNCES TENTATIVE AGENDA FOR OCTOBER OPEN MEETING
[SOURCE: Federal Communications Commission, AUTHOR: Press release]
Federal Communications Commission Chairwoman Mignon Clyburn announced that the following items will be on the tentative agenda for the next open meeting scheduled for Tuesday, October 22, 2013.
Rural Call Completion: The Commission will consider a Report and Order and Further Notice of Proposed Rulemaking to address problems associated with completion of long distance calls to rural areas.
Promoting Interoperability in the Lower 700 MHz Band: The Commission will consider a Report and Order that implements an industry solution to provide interoperable service in the lower 700 MHz band.
Implementing the Public Safety Broadband Provisions of the Middle Class Tax Relief and Job Creation Act of 2012: The Commission will consider a Report and Order adopting technical rules for the 700 MHz broadband spectrum licensed to the First Responder Network Authority.
benton.org/node/161530 | Federal Communications Commission
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GOVERNMENT & COMMUNICATIONS

NSA STORES METADATA OF MILLIONS OF WEB USERS FOR UP TO A YEAR, SECRET FILES SHOW
[SOURCE: The Guardian, AUTHOR: James Ball]
The National Security Agency is storing the online metadata of millions of Internet users for up to a year, regardless of whether or not they are persons of interest to the agency, top secret documents reveal. The New York Times reported that the NSA was using its metadata troves to build profiles of US citizens' social connections, associations and in some cases location, augmenting the material the agency collects with additional information bought in from the commercial sector, which is not subject to the same legal restrictions as other data. The ability to look back on a full year's history for any individual whose data was collected -- either deliberately or incidentally -- offers the NSA the potential to find information on people who have later become targets. But it relies on storing the personal data of large numbers of Internet users who are not, and never will be, of interest to the US intelligence community. By confirming that all metadata "seen" by NSA collection systems is stored, the Marina document suggests such collections are not merely used to filter target information, but also to store data at scale.
benton.org/node/161517 | Guardian, The
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SENATE TO MOVE ON NSA LEGISLATION
[SOURCE: The Hill, AUTHOR: Brendan Sasso, Kate Tummarello]
The Senate Intelligence Committee is set to vote on legislation aimed at restoring public trust in the National Security Agency following a summer of damaging leaks by Edward Snowden. But the bill, authored by Committee Chairman Dianne Feinstein (D-CA) and ranking member Sen Saxby Chambliss (R-GA), is unlikely to go far enough to appease privacy advocates. The bill would tweak — but not end — the NSA’s controversial program to collect records on all US phone calls. It would also require that the Senate confirm the NSA director and instruct the agency to produce annual reports containing statistics on its surveillance activities. Although Chairman Feinstein says some changes are necessary to promote trust in the NSA, she argues that the surveillance programs are legal and are critical for national security.
benton.org/node/161473 | Hill, The
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FEDS TARGETED SNOWDEN’S EMAIL PROVIDER THE DAY AFTER NSA WHISTLEBLOWER WENT PUBLIC
[SOURCE: Wired, AUTHOR: Kevin Poulsen]
When on June 9 Edward Snowden stood up in Hong Kong and revealed himself to the world as a National Security Agency whistleblower, the Justice Department wasted little time in targeting his e-mail provider. A new appeals court filing shows the government served a court order on Texas-based Lavabit the very next day, demanding metadata on an unnamed customer that the timing and circumstances suggest was Snowden. The June 10 records demand was issued under a 1994 amendment to the Stored Communications Act that allows law enforcement access to non-content Internet records without demonstrating the “probable cause” needed for a search warrant. That order was followed on June 28 with a so-called “pen register order”, which provides the same information prospectively — recording the metadata for every new email sent or received. Ladar Levison, owner of Lavabit, may have balked at actively circumventing the privacy system he built for users. After shutting down the site, Levison appealed on August 29. His opening brief in his appeal is due October 3. “He’s optimistic that we use this opportunity to possibly get some good law,” Lavabit attorney Jesse Binnall told said.
benton.org/node/161463 | Wired
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INTERNET/BROADBAND

BROADBAND PRICES
[SOURCE: The Wrap, AUTHOR: Brent Lang]
Broadband customers are bargain hunters, according to a new study by Morgan Stanley. The investment firm’s entertainment group polled 2,500 US based subscribers about their internet and cable plans and found that price, not speed, is the motivating factor behind most users’ decisions to switch services. Fifty-seven percent of those surveyed said that a lower costing alternative would prompt them to make a shift as opposed to 15 percent who said they would seek out faster options, seven percent who cited better reliability for their home networks and 3 percent who cited better customer service. Thirteen percent of respondents said nothing would induce them to quit their current service. In terms of pricing, cable was the more expensive option — customers reported paying an average of $53 for cable compared with $42 a month for DSL.
benton.org/node/161528 | Wrap, The
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HIGH-SPEED BROADBAND FOR AUSTIN
[SOURCE: Wall Street Journal, AUTHOR: Thomas Gryta]
AT&T is following plans by Google to offer ultrafast Internet service in Austin, Texas, by the middle of next year, focusing the service on neighborhoods that demonstrate the most demand. The build-out promises Internet speeds of up to a gigabit per second, or about 100 times faster than those found in many U.S. homes. But it poses a conundrum for some advocates of faster Internet service. The upgrade is economical because the carrier is targeting the most promising areas. That means communities that can't afford fast Internet could fall further behind on the digital curve. The issue could become more acute if experiments like this one in Austin and Google's earlier effort in Kansas City (KS) begin to spread across the country.
benton.org/node/161527 | Wall Street Journal | Bloomberg
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SPECTRUM/WIRELESS

CAR MAKERS VS CABLE COMPANIES
[SOURCE: Wall Street Journal, AUTHOR: Ryan Knutson, Shalini Ramachandran]
The auto and cable industries are in a jam over a lane of wireless spectrum. Car companies want the airwaves—currently reserved for them—to allow vehicles to communicate with each other as well as infrastructure such as stoplights, making road traffic flow more smoothly. But in meetings with the Federal Communications Commission as recently as last week, the cable and technology industries have argued that more spectrum is needed for Wi-Fi service, as existing channels become increasingly congested. Ultimately, the decision will be up to the FCC, which oversees spectrum allocation. The government shutdown derailed plans for a Tuesday hearing in front of the House subcommittee on Communications and Technology that had hopes of finding a solution. The debate pits auto makers such as General Motors and Ford against cable companies such as Comcast and Time Warner Cable. It also shows the challenges facing the federal government as it tries to allocate airwaves to the growing number of industries finding new ways to put it to use.
benton.org/node/161525 | Wall Street Journal
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APPLE TO PAY $40 TO IPAD 3G OWNERS
[SOURCE: GigaOm, AUTHOR: Jeff John Roberts]
Apple and AT&T are set to resolve a long-running class action suit over the companies’ decision in June, 2010 to end unlimited data plans for the iPad 3G tablet. In a ruling issued in San Jose (CA), US District Judge Ronald Whyte signed off on a plan that will see Apple pay $40 to everyone in the US who bought or ordered an iPad 3G before June 7, 2010. In addition, those who did not sign up with AT&T will get a $20/month discount on the carrier’s 5GB monthly plan for up to a year. Under the deal, which is set to receive final approval in February, Apple will attempt to contact everyone who is eligible, and will send them a $40 check.
benton.org/node/161469 | GigaOm
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TELEVISION/RADIO

FCC’S UHF DISCOUNT
[SOURCE: Wall Street Journal, AUTHOR: Miriam Gottfried]
Broadcast stations may soon be sending a different signal. The Federal Communications Commission has opened a public comment period on a proposal that could make broadcast stations equal for the purpose of determining ownership caps. If adopted, it could put the brakes on the recent round of consolidation among station owners. A single company is currently prohibited from owning stations that, in aggregate, reach more than 39% of total TV households nationwide. But owners have been allowed to count only 50% of the TV households in their market areas toward the cap for stations broadcasting via ultrahigh frequency, or UHF, signals. The FCC says the so-called UHF discount was adopted 30 years ago when those signals were considered technically inferior to very high frequency, or VHF, signals. But the transition from analog to digital broadcasting means that is no longer true. UHF signals are now, if anything, superior to VHF, the FCC argues. By making it easier to breach ownership caps, removing the discount could make it more difficult for companies to merge in order to gain heft in negotiations with TV networks and pay-TV providers.
benton.org/node/161523 | Wall Street Journal
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FCC STAYS THE COURSE ON DIGITAL TRANSITION FOR LPTV/CLASS A STATIONS
[SOURCE: CommLawBlog, AUTHOR: Peter Tannenwald]
The Federal Communications Commission has nixed requests submitted by a number of Low Power Television (LPTV) and Class A stations looking for relief from spectrum-clearing measures put in place two years ago. In 2011, the FCC announced the end of the transition to digital broadcasting for Class A and LPTV stations. In so doing, it set a number of deadlines. In response to a handful of petitions of reconsideration, the FCC has now reaffirmed those deadlines. Under the deadlines set in 2011, all TV operation of any kind, analog or digital, on Channels 52 and above had to end by December 31, 2011, and all analog LPTV broadcasting on any channel must end by September 1, 2015. While a number of LPTV representatives asked the Commission to re-think the December 31, 2011 deadline, the Commission has now concluded that no such re-think is necessary. Looking back on what actually happened post-December 31, 2011, the FCC is satisfied that it gave everybody plenty of time to get the job done and that its staff bent over backwards to help out where possible. With respect to the September 1, 2015 deadline for ceasing all analog operation on any channel, one LPTV licensee suggested that that hard-and-fast deadline be softened to permit LPTV stations to continue to operate in analog mode until some later time tied to the roll-out of the National Broadband Plan. The FCC’s response in a nutshell? Enough is enough. Analog is inefficient, and it’s time to put an end to it.
benton.org/node/161502 | CommLawBlog
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RADIO STATIONS WOULD PAY FOR MUSIC UNDER HOUSE BILL
[SOURCE: The Hill, AUTHOR: Kate Tummarello]
Radio stations may have to start paying musicians to play their songs. Rep. Mel Watt (D-NC) introduced a bill that would require radio broadcasters to negotiate with musicians for the rights to play their songs. Rep. Watt’s bill – which he called the free market solution – was applauded by members of the music industry and decried by broadcasters. Rep. Watt’s bill would do away with the compulsory license that requires musicians to make their work available. Instead, musicians and platforms – including AM/FM stations – would negotiate through SoundExchange, a performance royalty non-profit that facilitates those kinds of negotiations. The National Association of Broadcasters said it “respectfully opposes” Rep. Watt’s bill and supports “market-based negotiations like the recent Warner Music-Clear Channel accord.”
benton.org/node/161513 | Hill, The
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CONTENT

DEFINING AND DEMANDING A MUSICIAN’S FAIR SHAKE IN THE INTERNET AGE
[SOURCE: New York Times, AUTHOR: Ben Sisario]
It has been 13 years since Metallica’s drummer, Lars Ulrich, identified the screen names of more than 300,000 Napster users in a copyright infringement lawsuit. The tarring he received in response — being derided as greedy and insensitive to fans — still makes musicians think twice before complaining about the problems with digital music. But it hasn’t stopped David Lowery. As the leader of the bands Camper Van Beethoven and Cracker, Lowery had a modicum of fame in the 1980s and ’90s. But recently, he has become a celebrity among musicians for speaking out about artists’ shrinking paychecks and the influence of Silicon Valley over copyright, economics and public discourse. In public appearances and no-holds-barred blog posts, Lowery, 53, has come to represent the anger of musicians in the digital age.
benton.org/node/161515 | New York Times
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CLOUD STORAGE AND TV ANTENNAS
[SOURCE: Wall Street Journal, AUTHOR: Gary Shapiro]
[Commentary] We would be living in a different world today if, in 1984, the Supreme Court had decided that it was a copyright violation for Sony to sell its Betamax video recorders to consumers. This almost happened: It's what the U.S. Court of Appeals for the Ninth Circuit held on Oct. 19, 1981. But the Supreme Court reversed the lower court's decision by a single vote, opening the floodgates to digital home recording—and preparing the way for cloud computing, remote digital storage and even the Internet itself. Such innovations are under attack again, with broadcast-industry giants misappropriating copyright law to shut down startups and restrict consumer freedom. The Sony case, and other similar precedents, don't fully protect today's innovators. If courts fail to uphold the principle of consumer sovereignty behind the Supreme Court's Sony decision in 1984, our ability to use antennas, to control DVRs and to store content over the Internet will be seriously compromised. [Shapiro is president and CEO of the Consumer Electronics Association]
benton.org/node/161526 | Wall Street Journal
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ADVERTISING

FTC'S JESSICA RICH LAYS OUT AMBITIOUS AD ENFORCEMENT AGENDA
[SOURCE: AdWeek, AUTHOR: Katy Bachman]
Jessica Rich -- the Federal Trade Commission’s front line to advertising regulation as director of the agency’s consumer protection bureau -- is energetic and organized. She’ll need to be to tackle the ambitious agenda she laid out in her keynote speech to more than 100 marketers and advertising attorneys during the Advertising Self-Regulatory Council’s annual conference in New York. Rich, a 20-year FTC career attorney, is best known for her work in crafting the agency’s privacy policies. But now she’s head of the division that cracks down on unfair and deceptive advertising practices, too. Named to her position in June, Rich’s remarks marked her first public appearance before the advertising community. Like her predecessor, David Vladeck, Rich said marketers should expect more of the same from the division. “The FTC has long had a focus on national advertising. We’re by no means finished,” Rich said.
benton.org/node/161487 | AdWeek
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TELECOM

FCC PROPOSES MORE THAN $14.4 MILLION IN FORFEITURES TO COMBAT DUPLICATIVE LIFELINE SERVICE
[SOURCE: Federal Communications Commission, AUTHOR: Press release]
The Federal Communications Commission proposed more than $14.4 million in forfeitures against five wireless Lifeline service providers who apparently violated the FCC’s Lifeline rules. The violations involve thousands of consumers who had more than one Lifeline subscription from the same provider, resulting in duplicative support requests and payments. Specifically, the Notices of Apparent Liability (NALs) were issued against: Icon Telecom, Inc. ($4,806,381); TracFone Wireless, Inc. ($4,573,376); Assist Wireless, LLC ($2,203,977); Easy Telephone Services d/b/a/ Easy Wireless ($1,586,545); and UTPhone, Inc. ($1,234,456). In each case, the carrier knew or should have known, based on its own internal data, that the consumers were ineligible under Lifeline program rules. The penalties proposed in the NALs are in addition to recovery of universal service funds paid to the carriers for duplicative Lifeline service. For the apparent violations uncovered in these cases, where the providers should have discovered the duplicates on their own, the NALs adopt an aggressive forfeiture framework, including: (1) a separate forfeiture of $20,000 for each unlawful payment request seeking USF support for ineligible Lifeline subscribers; (2) a $5,000 forfeiture per ineligible subscriber; and (3) an upward adjustment of three times the total duplicate USF support payments requested and/or received.
benton.org/node/161529 | Federal Communications Commission
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STORIES FROM ABROAD

GOOGLE EU SETTLEMENT?
[SOURCE: Financial Times, AUTHOR: Alex Barker]
Google’s main antitrust fight in Europe is on course to end in settlement, after Brussels gave a favorable assessment of the US group’s improved offer to abide by legal restrictions when it presents search results. After months of speculation that talks were on the brink of collapse, Joaquín Almunia, the EU competition chief, announced significant progress that suggested a settlement would address his concerns about Google skewing results to its own advantage. Google’s latest offer to the European Commission closes loopholes and boosts the prominence and information provided in mandatory links to rival services, such as shopping or restaurant sites. Given the improvements, Almunia is open to pursuing a pre-charge deal, but the final decision will be subject to Google submitting data to show the effectiveness of the promises it is making. Rivals will be informally consulted during that process, but there will be no formal “market test” on the draft pact.
benton.org/node/161519 | Financial Times | Reuters
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HOW BRITAIN’S NEW CYBERARMY COULD RESHAPE THE LAWS OF WAR
[SOURCE: Washington Post, AUTHOR: Brian Fung]
[Commentary] The cultural norms against waging war in cyberspace are slowly eroding. The UK government announced it that it's actively building an offensive cyber capability, making it the first government to openly admit doing so. Britain will have "hundreds" of hackers at its disposal, defending the country's digital infrastructure, but also developing the power to deter and to strike. The act of putting together a cyberarmy is hardly worth mentioning; Britain's national security strategy documents from 2010 telegraph that pretty well. Besides — if you're a world leader and you're not investing in online defenses, you're doing it wrong.
benton.org/node/161475 | Washington Post
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FCC Announces Tentative Agenda for October Open Meeting

Federal Communications Commission Chairwoman Mignon Clyburn announced that the following items will be on the tentative agenda for the next open meeting scheduled for Tuesday, October 22, 2013.

  1. Rural Call Completion: The Commission will consider a Report and Order and Further Notice of Proposed Rulemaking to address problems associated with completion of long distance calls to rural areas.
  2. Promoting Interoperability in the Lower 700 MHz Band: The Commission will consider a Report and Order that implements an industry solution to provide interoperable service in the lower 700 MHz band.
  3. Implementing the Public Safety Broadband Provisions of the Middle Class Tax Relief and Job Creation Act of 2012: The Commission will consider a Report and Order adopting technical rules for the 700 MHz broadband spectrum licensed to the First Responder Network Authority.

FCC Proposes $14.4 Million Forfeitures to Protect Lifeline Service

The Federal Communications Commission proposed more than $14.4 million in forfeitures against five wireless Lifeline service providers who apparently violated the FCC’s Lifeline rules.

The violations involve thousands of consumers who had more than one Lifeline subscription from the same provider, resulting in duplicative support requests and payments. Specifically, the Notices of Apparent Liability (NALs) were issued against: Icon Telecom, Inc. ($4,806,381); TracFone Wireless, Inc. ($4,573,376); Assist Wireless, LLC ($2,203,977); Easy Telephone Services d/b/a/ Easy Wireless ($1,586,545); and UTPhone, Inc. ($1,234,456). In each case, the carrier knew or should have known, based on its own internal data, that the consumers were ineligible under Lifeline program rules.

The penalties proposed in the NALs are in addition to recovery of universal service funds paid to the carriers for duplicative Lifeline service. For the apparent violations uncovered in these cases, where the providers should have discovered the duplicates on their own, the NALs adopt an aggressive forfeiture framework, including:
(1) a separate forfeiture of $20,000 for each unlawful payment request seeking USF support for ineligible Lifeline subscribers;
(2) a $5,000 forfeiture per ineligible subscriber; and
(3) an upward adjustment of three times the total duplicate USF support payments requested and/or received.

Broadband Customers Motivated by Price, Not Speed

Broadband customers are bargain hunters, according to a new study by Morgan Stanley.

The investment firm’s entertainment group polled 2,500 US based subscribers about their internet and cable plans and found that price, not speed, is the motivating factor behind most users’ decisions to switch services. Fifty-seven percent of those surveyed said that a lower costing alternative would prompt them to make a shift as opposed to 15 percent who said they would seek out faster options, seven percent who cited better reliability for their home networks and 3 percent who cited better customer service. Thirteen percent of respondents said nothing would induce them to quit their current service. In terms of pricing, cable was the more expensive option — customers reported paying an average of $53 for cable compared with $42 a month for DSL.

AT&T's Ultrafast Internet to Rival Google's

AT&T is following plans by Google to offer ultrafast Internet service in Austin, Texas, by the middle of next year, focusing the service on neighborhoods that demonstrate the most demand.

The build-out promises Internet speeds of up to a gigabit per second, or about 100 times faster than those found in many U.S. homes. But it poses a conundrum for some advocates of faster Internet service. The upgrade is economical because the carrier is targeting the most promising areas. That means communities that can't afford fast Internet could fall further behind on the digital curve. The issue could become more acute if experiments like this one in Austin and Google's earlier effort in Kansas City (KS) begin to spread across the country.

Cloud Storage and TV Antennas Go to Court

[Commentary] We would be living in a different world today if, in 1984, the Supreme Court had decided that it was a copyright violation for Sony to sell its Betamax video recorders to consumers. This almost happened: It's what the U.S. Court of Appeals for the Ninth Circuit held on Oct. 19, 1981. But the Supreme Court reversed the lower court's decision by a single vote, opening the floodgates to digital home recording—and preparing the way for cloud computing, remote digital storage and even the Internet itself. Such innovations are under attack again, with broadcast-industry giants misappropriating copyright law to shut down startups and restrict consumer freedom. The Sony case, and other similar precedents, don't fully protect today's innovators.

If courts fail to uphold the principle of consumer sovereignty behind the Supreme Court's Sony decision in 1984, our ability to use antennas, to control DVRs and to store content over the Internet will be seriously compromised.

[Shapiro is president and CEO of the Consumer Electronics Association]

Wi-Fi Fight Pits Car Makers Against Cable Companies

The auto and cable industries are in a jam over a lane of wireless spectrum. Car companies want the airwaves—currently reserved for them—to allow vehicles to communicate with each other as well as infrastructure such as stoplights, making road traffic flow more smoothly. But in meetings with the Federal Communications Commission as recently as last week, the cable and technology industries have argued that more spectrum is needed for Wi-Fi service, as existing channels become increasingly congested.

Ultimately, the decision will be up to the FCC, which oversees spectrum allocation. The government shutdown derailed plans for a Tuesday hearing in front of the House subcommittee on Communications and Technology that had hopes of finding a solution. The debate pits auto makers such as General Motors and Ford against cable companies such as Comcast and Time Warner Cable. It also shows the challenges facing the federal government as it tries to allocate airwaves to the growing number of industries finding new ways to put it to use.

Interrupting TV's M&A Broadcast

Broadcast stations may soon be sending a different signal. The Federal Communications Commission has opened a public comment period on a proposal that could make broadcast stations equal for the purpose of determining ownership caps. If adopted, it could put the brakes on the recent round of consolidation among station owners.

A single company is currently prohibited from owning stations that, in aggregate, reach more than 39% of total TV households nationwide. But owners have been allowed to count only 50% of the TV households in their market areas toward the cap for stations broadcasting via ultrahigh frequency, or UHF, signals. The FCC says the so-called UHF discount was adopted 30 years ago when those signals were considered technically inferior to very high frequency, or VHF, signals. But the transition from analog to digital broadcasting means that is no longer true. UHF signals are now, if anything, superior to VHF, the FCC argues. By making it easier to breach ownership caps, removing the discount could make it more difficult for companies to merge in order to gain heft in negotiations with TV networks and pay-TV providers.

Phony Web Traffic Tricks Digital Ads

Authorities and Internet-security experts say tens of thousands of dubious websites are popping up across the Internet. Their phony Web traffic is often fueled by "botnets," zombie armies of hijacked PCs that are controlled from unknown locations around the world, according to Internet security experts.

The sites take advantage of the simple truth that advertisers pay to be seen. This creates an incentive for fraudsters to erect sites with phony traffic, collecting payments—often through middlemen and sometimes directly from advertisers. At their most sophisticated, botnets can mimic the behavior of online consumers, clicking from one site to the next, pausing at ads, watching videos, and even putting items in shopping carts.

Google moves nearer to search deal with EU

Google’s main antitrust fight in Europe is on course to end in settlement, after Brussels gave a favorable assessment of the US group’s improved offer to abide by legal restrictions when it presents search results. After months of speculation that talks were on the brink of collapse, Joaquín Almunia, the EU competition chief, announced significant progress that suggested a settlement would address his concerns about Google skewing results to its own advantage. Google’s latest offer to the European Commission closes loopholes and boosts the prominence and information provided in mandatory links to rival services, such as shopping or restaurant sites. Given the improvements, Almunia is open to pursuing a pre-charge deal, but the final decision will be subject to Google submitting data to show the effectiveness of the promises it is making. Rivals will be informally consulted during that process, but there will be no formal “market test” on the draft pact.