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December 2013

Congress Faces Long To-Do List Before Year's End

Congress is heading into the final stretch of its legislative session with a pile of year-end policy decisions before it and little time to address them.

Lawmakers are struggling to negotiate deals on farm programs and food stamps, and on the budget for a fiscal year that began two months ago. Many want to pass new Iran sanctions, stave off a cut to doctors' Medicare payments and revisit policy on unemployment benefits. The window for joint congressional action is narrow. The House returns from Thanksgiving recess Dec. 2, while the Senate reconvenes Dec. 9. If the House adjourns for the year as planned on Dec. 13, the two chambers will be in session simultaneously for only one week in December. The year's final month caps a legislative session that has been long on partisanship, indecision and brinkmanship, and short on compromise and lawmaking. Congress has enacted only 52 new laws this year. At that pace, lawmakers would fall far short of the 284 laws enacted by the prior Congress from early 2011 to early 2013, according to the website GovTrack, which follows legislation. That itself was a significant drop-off from earlier sessions. Lawmakers have spent relatively little time in Washington this year. The House has been in session for 143 days so far, the Senate for 142. In 2011, the House met for 175 days and the Senate for 170.

(Dec 1)

Insurers Claim Health Website Is Still Flawed

Weeks of frantic technical work appear to have made the government’s health care website easier for consumers to use. But that does not mean everyone who signs up for insurance can enroll in a health plan.

The problem is that so-called back end systems, which are supposed to deliver consumer information to insurers, still have not been fixed. And with coverage for many people scheduled to begin in just 30 days, insurers are worried the repairs may not be completed in time. The issues are vexing and complex. Some insurers say they have been deluged with phone calls from people who believe they have signed up for a particular health plan, only to find that the company has no record of the enrollment. Others say information they received about new enrollees was inaccurate or incomplete, so they had to track down additional data — a laborious task that would not be feasible if data is missing for tens of thousands of consumers. In still other cases, insurers said, they have not been told how much of a customer’s premium will be subsidized by the government, so they do not know how much to charge the policyholder.

(Dec 1)

Why Comcast and other cable ISPs aren’t selling you gigabit Internet

Gigabit-class broadband is capturing the imagination of Internet users throughout the country. With Google and other companies bringing fiber-based services that deliver a gigabit of data each second to the home, communities are accelerating their push to get the highest speeds. A consumer who really needs 1,000 megabits of bandwidth is probably a rare creature, but excitement over fiber deployments show there is at least some demand for what is a ludicrous speed compared to most home Internet connections. Cable companies haven't been ignoring this consumer demand… but they haven't done anything to satisfy it, either. While DOCSIS 3.1 products may be available next year, the first deployments to home customers aren't expected until at least 2015. A CableLabs presentation says that trends indicate there will be "1Gbps premium offers in 2016 or later."

“Is there anywhere else in the ecosystem where somebody demonstrates something that's really cool and great, and faster and better, and doesn't put it out for more than two years?" said Blair Levin, a former Federal Communications Commission official and current executive director of Gig.U. "Would Apple ever say, 'here's a phone we're thinking about doing, maybe a couple years from now you'll get it. We could do it today but… no, we're not going to do that'?"

Although vendors promise that it's coming (eventually), some observers believe there just hasn't been enough competition to spur a large-scale shift to gigabit cable speeds. Cable vendors have been forced to offer better deals or upgrade their marketing in communities with competition from fiber. But fiber deployments are still limited, and most US consumers have little choice among Internet providers.

(Dec 1)

Cellphones Leave Gaps for Emergency Services

Amid all the privacy concerns about cellphone tracking, one important group is arguing that location data isn't precise enough: emergency responders. Police and others say 911 dispatchers are having trouble sending help to callers who use cellphones. The reason: unlike a landline, cellphones provide just a rough estimate -- with a possible radius of a few hundred yards -- of the caller's location.

Data released this summer renewed attention to the problem and set off a debate over the adequacy of the tracking data that cellphone carriers share with emergency dispatchers. The proliferation of cellphones has been both a blessing and a headache for law-enforcement officers and other emergency responders. More people with cellphones means it is easier than ever to make a quick call for help. But if a caller can't speak or isn't familiar with his or her location, cellphones make it harder to find them, particularly if they are indoors. Around 38% of households have ditched landlines and rely solely on cellphones, according the U.S. Centers for Disease Control and Prevention, and more people are using them for 911 calls. In California alone, 75% of 911 calls placed in the state during a recent 18-month period were made using cellphones. In reaction to the shift, 911 dispatchers in recent years have begun asking callers first where they are, rather than the nature of their emergency.

(Dec 1)

Mobile cramming is still on lawmakers’ agenda

Major wireless carriers are touting an agreement with state regulators to end so-called mobile cramming, but key federal agencies and consumer groups caution the fight against such cellphone billing scams isn’t over.

Following negotiations with 45 state attorneys general, AT&T, Sprint and T-Mobile agreed late last month to stop billing cellphone customers for certain kinds of unauthorized charges. The agreement would apply to services like horoscopes and love advice that solicit subscriptions via text message. The state AGs who brokered the deal said it will take a major bite out of the practice that has sparked a backlash from consumers and lawmakers on Capitol Hill. But watchdog groups say the carriers’ move is relatively narrow. It applies only to so-called premium text messaging services and not to the full range of outside charges that can be added to cellphone bills. Since such third-party charges are unfamiliar to many users — and often go unnoticed — the practice leaves people vulnerable to overbilling and fraud, consumer groups say.

(Dec 2)

Want Calls on Planes? You’ll Need to Speak Up

So why is the Federal Communications Commission proposing something many people don’t seem to want? The agency is, in fact, trying to give us what we want: access to data while flying. One byproduct, however, is that people would, or could, also be able to make calls. But it may be difficult for people to get what many want -- access to cellular data on flights -- without getting what many don’t want -- the occasional Chatty Cathy in 21B.

As the Federal Aviation Administration’s revision of its rules on using devices during takeoff and landing illustrate, today’s gadgets and planes are made for each other. In many respects, the FCC is looking out for consumers, trying to give people the opportunity to connect to data on a cellphone rather than pay for costly -- and often laboriously slow -- Wi-Fi available on airplanes. The change here, if it comes, will not happen overnight. There’s a long process to go through first. On Dec. 12, the FCC proposal will be presented to its commissioners. If approved, it will then be put online for public comment. That’s when everyone -- airlines and passengers alike -- can voice their opinions. But, travelers, think carefully. Say no to cellphone use, and you lose that data connection on your iPad and smartphone at 30,000 feet. And that is what many of you have been asking for all along. You might have to sit next to Chatty Cathy.

(Dec 1)

Your mobile phone may be unlocked. Don't bother cheering

[Commentary] Here are a few things to consider before celebrating the cellphone unlocking news:

  1. There isn't a stampede to change carriers: Carriers are already creating shorter-term contracts. But still, the industry churn rate -- the number of people changing carriers -- is about 2 percent. OK, that number may go up if it becomes easier to switch carriers and T-Mobile is trying to woo competitors' customers with its "Uncarrier" campaign. But thanks to the marketing wizardry of Apple, Samsung and other hardware firms, what consumers often want to do is change their devices, not their carriers, as soon as their contracts expire.
  2. There is nowhere to go: Mobile phones are often made with technology tailored to the carrier. That means that there are only a few permutations possible in switching carriers with the same phone. A T-Mobile subscriber can move to AT&T and supposedly vice versa. It gets trickier moving to Sprint and Verizon. You might have voice and not data service. This may be something carriers and handset manufacturers will fix, but right now, switching is not seamless.
  3. It's typically a bad deal for a consumer to keep their current phone beyond the contract, since the price of the phone is built into the monthly bill. Once the contract expires, carriers don't currently offer a lower monthly rate. This means you are still paying for a phone that you've already, effectively, paid for. Currently, the major carriers don't have a tailored plan for those who bring their own phone. Again, that may change. If people hold on to their phones longer, carriers may see new markets to reach.
  4. The more cost-sensitive consumer may lose out: There may be pluses for the consumer on a tight budget. The availability of unlocked phones could help the resale market, for example, where phones are usually cheaper. And Simpson, of Consumer Watchdog, says it could be valuable for consumers to know the true cost of their phone and the costs of those long-term contracts. Even if, he said, "it may mean higher initial costs." That's OK for some. But many people can't fork over $600 for a smartphone at Christmas and then shop for carrier plans. This switch could also raise costs in the prepaid phone market, which is about 30 percent of the U.S. mobile phone market. That could hurt some consumers, especially those with lower incomes who tend to take advantage of these types of phones.

(Nov 29)

When Ads Look Like Content

In their search for new ad revenue, many news outlets have embraced "sponsored content" -- advertisements that are meant to blend in with regular editorial content. Now regulators are taking a look at the practice.

The Federal Trade Commission on Dec 4 will host an informal workshop for advertisers, publishers and legal experts titled "Blurred Lines: Advertising or Content?" to discuss whether media outlets are adequately identifying sponsored stories on their websites as promotional pitches, and to consider if consumers might be misled. The gathering isn't a hearing or investigation of sponsored content or its practitioners. But it could serve as a jumping-off point for the FTC, which is charged with preventing unfair or deceptive advertising practices, to eventually establish guidelines governing sponsored-content practices.

(Dec 1)

Chairman Wheeler Appointed FCC Defense Commissioner

The Federal Communications Commission appointed FCC Chairman Tom Wheeler to be Defense Commissioner.

The Defense Commissioner “directs the homeland security, national security and emergency preparedness, and defense activities of the Commission.” The duties and responsibilities of the Defense Commissioner include, inter alia: (1) representing the Commission in interagency matters pertaining to public safety, homeland security, national security, emergency preparedness, disaster management, and defense and related matters, including matters pertaining to continuity of the essential functions of the Commission under emergency conditions; (2) serving as the principal point of contact for the Commission on all matters pertaining to the Department of Homeland Security; (3) developing emergency programs covering service provision by wireless and wireline telecommunications carriers and broadcast, cable, and satellite facilities, as well as radio frequency assignment, investigation, and enforcement; and (4) assuming the duties of the Commission under certain emergencies.

(Nov 27)

Turning to Public to Back Investigative Journalism

If you suspect your local town government is corrupt, would you pay a journalist to investigate? Uncoverage, a website, will test whether the public cares enough about investigative journalism to pay for it.

The site will allow journalists and nonprofits to seek crowdsourced funding for both articles and topics like, for example, the Syrian war. Money for general topics will be split up among projects by the site’s editors. The nonprofit investigative group the Center for Public Integrity has signed on as a partner whose projects will be featured on the site. The commercial site is being founded by Israel Mirsky, an entrepreneur who said that the current model for financing investigative journalism was broken.

(Dec 1)

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