December 2013

FCC Reschedules December Open Meeting

Due to a House oversight hearing, the Federal Communications Commission has rescheduled it’s Dec 12 open meeting to 2:30 pm. The FCC also confirmed the meeting’s agenda.

The FCC will consider:

A Report and Order that takes critical steps to improve the reliability and resiliency of 911 networks nationwide; and
A Notice of Proposed Rulemaking to revise outdated rules and provide airlines with the ability to permit passengers to use mobile wireless services via onboard airborne access systems.

In addition, the FCC will hear two presentations:

A status update on the Technology Transitions Policy Task Force’s work towards making near-term recommendations related to the FCC’s expectations and role in the IP transition; and
An update on FCC and industry efforts to promote mobile wireless device unlocking.

FCC's Connect America Fund To Expand Broadband to Nearly 400,000 Rural Homes and Businesses In 41 States

Over $255 million in funding to provide new broadband access to over 400,000 homes and businesses in rural areas of 41 states has been authorized from the Federal Communications Commission’s Connect America Fund, connecting nearly 1 million people who lack service.

The Connect America Fund is part of the FCC’s initiative to bring broadband access to rural communities. The $255,723,850 authorized today represents a jump-start to bring broadband to these areas. It brings the total authorized from the first phase of the Connect America Fund to nearly $403 million. Five carriers will use the funds in rural portions of their service areas where, absent support from the Connect America Fund, broadband expansion was unlikely. The carriers are AT&T, CenturyLink, Fairpoint Communications, Frontier Communications, and Windstream.

Twitter Adds First Female Director

Twitter announced it added its first female director, former Pearson Chief Executive Marjorie Scardino.

The appointment ends drawn-out speculation as to when Twitter might diversify its all-male boardroom ranks. The company was criticized in the weeks leading up to its high-profile Wall Street debut for its lack of women in top executive positions — a fact exacerbated by CEO Dick Costolo’s seemingly flippant attitude shown in response to critics. Scardino’s appointment is effective immediately and she will join the audit committee, according to a filing with the Securities and Exchange Commission. The 66-year-old’s experience as the head of Pearson, a publishing and education company, will bring helpful perspective as Twitter looks to strengthen its ties to the media industry.

House Passes Bill Aimed at Patent 'Trolls'

The House overwhelmingly passed legislation aimed at discouraging frivolous lawsuits by patent holders who hope to extract settlements from companies wary of litigation costs. By a vote of 325-91, the House approved the Innovation Act from House Judiciary Chairman Bob Goodlatte (R-VA), setting the stage for the Senate to act in the coming months.

The bill would require patent holders who file lawsuits to disclose more information upfront on the patents involved and the nature of the alleged infringement. It would also give judges more discretion to limit discovery or award legal fees when a lawsuit fails to prove infringement. Companies that pushed for the bill describe the patent-holding entities that file lawsuits as patent "trolls." Critics of the bill said it could hinder innovation and prevent inventors from upholding their rights. A large, bipartisan contingent spoke out in favor of the bill, arguing that small-business owners and startups are frequently the target of patent assertion entities seeking a quick settlement. However, the main support for the bill has come from large technology companies like Google, as spending on patent litigation has risen in recent years. Opposition came from a small but vocal minority led by the Judiciary Committee's senior Democrat, Rep. John Conyers (D-MI), as well as Reps. Mel Watt (D-NC), and Dana Rohrabacher (R-CA). They said the bill would impose an undue burden on patent holders seeking to enforce their rights.

Android Flashlight App Developer Settles FTC Charges It Deceived Consumers

The creator of one of the most popular apps for Android mobile devices has agreed to settle Federal Trade Commission charges that the free app, which allows a device to be used as a flashlight, deceived consumers about how their geolocation information would be shared with advertising networks and other third parties. Goldenshores Technologies is the company behind the “Brightest Flashlight Free” app, which has been downloaded tens of millions of times by users of the Android operating system.

The FTC’s complaint alleges that the company’s privacy policy deceptively failed to disclose that the app transmitted users’ precise location and unique device identifier to third parties, including advertising networks. In addition, the complaint alleges that the company deceived consumers by presenting them with an option to not share their information, even though it was shared automatically, rendering the option meaningless. The settlement with the FTC prohibits the company from misrepresenting how consumers’ information is collected and shared and how much control consumers have over the way their information is used. The settlement also requires the defendants to provide a just-in-time disclosure that fully informs consumers when, how, and why their geolocation information is being collected, used and shared, and requires defendants to obtain consumers’ affirmative express consent before doing so. The flashlight app company also will be required to delete any personal information collected from consumers through the Brightest Flashlight app. The Commission vote to accept the consent agreement package containing the proposed consent order for public comment was 4-0.

CBO Scores DATA Act

The DATA Act (S. 994) aims to make information on federal expenditures more easily accessible and transparent. The bill would require the U.S. Department of the Treasury to establish common standards for financial data provided by all government agencies and to expand the amount of data that agencies must provide to the government website, USASpending.

In addition, the Office of Management and Budget (OMB) would be required to conduct a two-year pilot program to make it easier for federal contractors and grant recipients to comply with federal reporting requirements. S. 994 also would require OMB, the Government Accountability Office (GAO), and the agencies’ Inspectors General (IGs) to submit additional reports to the Congress. Finally, the legislation would designate the Treasury Franchise Fund as the source of funding for the bill’s implementation. CBO estimates that implementing the bill would cost $300 million over the 2014-2018 period, assuming appropriation of the necessary amounts. The legislation also could affect direct spending by agencies not funded through annual appropriations; therefore, pay-as-you-go procedures apply. CBO estimates, however, that any net increase in spending by those agencies would not be significant. Enacting the bill would not affect revenues.

Interactive Advertising Bureau Releases Native Advertising Playbook to Establish Common Industry Lexicon, Evaluation Framework & Disclosure Principles

Native has become a hot topic in the advertising marketplace, but for the practice to flourish further, it needs consensus on definitions and structure. In response, the Interactive Advertising Bureau (IAB) and its Native Advertising Task Force has released the “IAB Native Advertising Playbook” to serve as a consistent framework for the discussion surrounding native advertising, identifying it as both an aspiration to seamlessly integrate brand messaging into consumers’ content experiences, as well as a practical suite of ad products that successfully meet that objective.

In addition to the task force, senior-level buy-side executives were tapped for their expert counsel on what advertisers need to consider before they add native elements into their digital marketing mix. The IAB Public Policy Council was also consulted for the playbook’s recommendations on sponsorship disclosures. The playbook highlights six core interactive ad formats that are currently being used within the native advertising landscape:

In-feed units
Paid search units
Recommendation widgets
Promoted listings
IAB standard ads with “native” element units
Custom

AT&T Follows in T-Mobile’s Footsteps With Cell Plans That Separate Device Cost from Monthly Service Fee

AT&T is announcing new cellular plan options that offer discounted rates to customers who forgo the usual subsidy given to those switching to the carrier or signing up for a new two-year contract.

Starting on Dec. 8, 2013 the new “Mobile Share Value” plans will be available to customers who buy new phones outright, bring their own device, or finance their purchase through AT&T’s no-money-down Next option. Current customers can also shift to one of the new plans once they have completed their contract commitment for their existing phone. On average, AT&T says, customers will save $15 per month with the new plans. AT&T spokesman Mark Siegel denied that T-Mobile’s moves prompted the new plans.

Sen Ayotte Introduces USF Equitable Distribution Act

Sen. Kelly Ayotte (R-NH) introduced the USF Equitable Distribution Act (S. 1766) would ensure that a rural state is guaranteed to receive at least 75 cents for every dollar it contributes to the Universal Service Fund (USF). Sen. Ayotte said her home state currently receives only 37 cents for every dollar they contribute to the USF.

Rep Rogers: Shut down HealthCare.gov to fix security issues

House Intelligence Committee Mike Rogers (R-MI) said that HealthCare.gov should be shut down because it's still putting consumers' personal information at risk. “What I would do is shut it down, get it functioning, and then bring in these independent security folks so that you’re not putting at risk millions of millions of Americans’ private and personal information,” said. In his position as chairman, Rep. Rogers has been monitoring the security issues posed by ObamaCare’s federal portal since it launched. In late October 2013, he warned that the site’s developers never had an “overarching solid cybersecurity plan.”

Benton

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