January 2014

GOVERNMENT & COMMUNICATIONS

NSA AND GCHQ TARGET 'LEAKY' PHONE APPS LIKE ANGRY BIRDS TO SCOOP USER DATA
[SOURCE: The Guardian, AUTHOR: James Ball]
The National Security Agency and its UK counterpart Government Communications Headquarters (GCHQ) have been developing capabilities to take advantage of "leaky" smartphone apps, such as the wildly popular Angry Birds game, that transmit users' private information across the Internet, according to top secret documents. The data pouring onto communication networks from the new generation of iPhone and Android apps ranges from phone model and screen size to personal details such as age, gender and location. Some apps, the documents state, can share users' most sensitive information such as sexual orientation -- and one app recorded in the material even sends specific sexual preferences such as whether or not the user may be a swinger. Many smartphone owners will be unaware of the full extent this information is being shared across the Internet, and even the most sophisticated would be unlikely to realize that all of it is available for the spy agencies to collect. Dozens of classified documents, provided to the Guardian by whistleblower Edward Snowden and reported in partnership with the New York Times and ProPublica, detail the NSA and GCHQ efforts to piggyback on this commercial data collection for their own purposes.
benton.org/node/173238 | Guardian, The | New York Times | The Hill | The Verge | National Public Radio
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SNOWDEN: NSA CONDUCTS INDUSTRIAL ESPIONAGE TOO
[SOURCE: CBS, AUTHOR: ]
The US National Security Agency is involved in industrial espionage and will grab any intelligence it can get its hands on regardless of its value to national security, former National Security Agency contractor Edward Snowden said. Snowden said the NSA does not limit its espionage to issues of national security and he cited German engineering firm, Siemens, as one target. "If there's information at Siemens that's beneficial to US national interests -- even if it doesn't have anything to do with national security -- then they'll take that information nevertheless," Snowden said. Snowden also told the German public broadcasting network he no longer has possession of any documents or information on NSA activities and has turned everything he had over to select journalists. He said he did not have any control over the publication of the information.
benton.org/node/173211 | CBS | North German Broadcasting | The Verge
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US TO ALLOW COMPANIES TO DISCLOSE MORE DETAILS ON GOVERNMENT REQUESTS FOR DATA
[SOURCE: Washington Post, AUTHOR: Craig Timberg, Adam Goldman]
The Justice Department has agreed to relax its long-standing gag order on certain types of sensitive data requests made to companies, allowing them for the first time to publicize -- in broad terms -- how often they must furnish customer information to the government, US officials announced. The agreement, struck in response to legal challenges from Google, Microsoft and other technology companies, comes as part of President Obama’s effort to ease the secrecy around government intelligence-gathering in the aftermath of revelations by former National Security Agency contractor Edward Snowden. The new policy will allow companies to report on national security letters -- a form of administrative subpoena -- as well as on requests from the Foreign Intelligence Surveillance Court (FISC). However, they will be permitted to disclose the volume of requests only in wide numerical ranges. The same rules will apply to requests from the FISC. Companies will also have the option of lumping the two categories of data requests together in a single total. If they do so, the numeric range can be in smaller bands, such as between “zero and 249,” according to the Justice Department. US officials have said that more-precise reporting might tip targets off to investigations.
benton.org/node/173307 | Washington Post | Department of Justice | Wall Street Journal | USAToday | The Hill | GigaOm | The Verge
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BAD DEAL FOR START-UPS?
[SOURCE: New York Times, AUTHOR: Nicole Perlroth]
A small but significant caveat in a new agreement brokered between the Obama administration and Google, Facebook, Yahoo and Microsoft could cast a long shadow over America’s technology start-ups. Intelligence officials agreed only to allow communication providers to disclose more specific information about data sought by government agents because of a new provision that bars companies less than two years old from disclosing such information for a period of two years. That caveat effectively means that no one will know whether the government is eavesdropping on a new e-mail platform or chat service for two years. Ladar Levison, the founder of Lavabit, the email service used by Edward Snowden that was the target of a government investigation, said the new rules would cast a pall over new technology companies while doing little for the established companies.
benton.org/node/173332 | New York Times
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WINNERS IN SETTLEMENT
[SOURCE: Politico, AUTHOR: Tony Romm]
The Obama Administration’s legal cease-fire with tech companies in the National Security Agencysnooping controversy amounts to an early, unsteady truce: The industry gets to release more information, and the White House looks like it’s being more transparent. But the fight is far from finished. For starters, the Obama Administration still must gird for a battle back on Capitol Hill, where lawmakers have proposed bills that would require even more disclosure of the intelligence community’s surveillance activities. Tech companies, despite their praise, didn’t get all of what they wanted. And civil-liberties advocates, while satisfied with some progress, also see much more work to be done. If anything, the settlement marks the calm before the storm -- a big step, but just a first step.
benton.org/node/173331 | Politico
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PRESIDENT OBAMA VOWS TO REVIEW BIG DATA PRIVACY IMPACT
[SOURCE: Politico, AUTHOR: Alex Byers]
Privacy groups that have pushed for controls on commercial use of consumer data see an opening as President Barack Obama tackles government surveillance reform -- and they’re hoping to hear more in the State of the Union address. “I do think he has the opportunity to say something proactive in support of privacy, because as he himself said, you know, it’s not just about the [National Security Agency],” said Marc Rotenberg, executive director of the Electronic Privacy Information Center, about the State of the Union speech. The president’s newly expressed interest in commercial privacy is a welcome development for groups that have pressed the administration for years to tighten rules on how companies handle sensitive consumer data.
benton.org/node/173330 | Politico
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TUST IN THE INTERNET IS CRUMBLING
[SOURCE: USAToday, AUTHOR: Byron Acohido]
[Commentary] We are commemorating Data Privacy Day here in the US, while Europe is acknowledging Data Protection Day. It couldn't be more timely. Trust in the Internet is crumbling, creating huge new business opportunities for tech security vendors -- and complex challenges for governments. A gargantuan global market for new technologies to lock down all the clever things we can now do in the Internet cloud, with our mobile devices, is rapidly taking shape. The underlying threats are worsening at a rapid pace. Some 67% of SMS text message scams tracked by messaging security firm Cloudmark in 2013 sought to lure US victims with various financial offers, while phishing scams accounted for 20% of SMS spam aimed at Americans. This suggests that the consumer data stolen from Target, Neiman Marcus and Michaels will be put to use aiding and abetting scams. Phone numbers associated with specific store purchases and specific bank cards make phishing ruses, deployed via mobile devices and social media sites, much more successful. The scammers' end game: get you to make a bogus transaction and/or divulge other valuable personal information. Better technology alone won't be enough to slow the erosion of trust in the Web. Government must step up.
benton.org/node/173329 | USAToday
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OBAMA'S NSA BLIND SPOT
[SOURCE: Los Angeles Times, AUTHOR: Bruce Ackerman]
[Commentary] President Obama's recent speech on government surveillance is dominating the conversation, but he won't be making the key decisions on the future of the National Security Agency's collection of domestic phone data. The statutory provision authorizing these massive sweeps expires June 1, 2015. If Congress simply does nothing, the NSA's domestic spying program will soon come to a screeching halt. The question is whether Americans will seize this opportunity to gain critical perspective on the crisis responses of the George W. Bush years. Voters elected and reelected President Obama precisely because he promised to engage in this decisive reappraisal. But his speech failed to redeem this promise. In contrast, President Obama never mentions the 4th Amendment's demand that "no warrants shall issue, but upon probable cause ... describing the place to be searched, and the persons or things to be seized." The President has no right to sit on the sidelines until the high court tells him what the Constitution means. The president is under an independent obligation to determine that his actions are legitimate.
[Ackerman is a professor of law and political science at Yale]
benton.org/node/173243 | Los Angeles Times
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HOLLYWOOD, PROPAGANDA AND LIBERAL POLITICS
[SOURCE: Los Angeles Times, AUTHOR: Jonah Goldberg]
[Commentary] When Hollywood's self-declared auteurs and artistes denounce propaganda as the enemy of art, almost invariably what they really mean is "propaganda we don't like." In the book, "Prime Time Propaganda," author Ben Shapiro quotes many TV producers boasting about blacklisting conservative actors and shilling for liberal issues. As Shapiro notes, perhaps no figure was more upfront -- or successful -- at yoking art to political proselytizing than Norman Lear, the creator of "All in the Family," "The Jeffersons" and other shows. Which is fitting. Last fall, the California Endowment, which is spending millions to promote the Affordable Care Act, gave $500,000 to the Norman Lear Center at USC to work on ways to get Hollywood to do its part. In February, the center will cosponsor with the Writer's Guild of America an event in New York titled "The Affordable Care Act: Comedy, Drama & Reality," about portraying Obamacare in TV and film. The Obama administration, naturally, will be sending an emissary to help. It's doubtful this will have any significant effect. The rollout has made its impression and the changes wrought by Obamacare in the individual lives of millions of Americans won't be erased by a very special episode of "The Big Bang Theory." But it's a useful reminder that Hollywood is always eager to lend its services -- for the right president.
benton.org/node/173328 | Los Angeles Times
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INTERNET/TELECOMMUNICATIONS

CONNECTION FAILED: INTERNET STILL A LUXURY FOR MANY AMERICANS
[SOURCE: The Guardian, AUTHOR: Jana Kasperkevic]
Among US households with incomes of $30,000 and less, only 54% have access to broadband at home, says Kathryn Zickuhr, a research associate with Pew Research Center’s Internet Project. Members of these households are most likely to use Internet access outside home -- at work, school or a public library. About 13% of these household report accessing the Internet on their cellphones. A further look into poverty reveals more and more unconnected Americans. According to Pew Research, one-third of those making less than $20,000 a year do not go online at all. Another third go online, but do not have Internet access at home. Of those making $30,000 or less, 45% of mobile internet users go online mostly with their cellphones. Even as some schools forge ahead by incorporating computers, many students are left behind due to the lack of connection at home. In a February 2013 survey conducted by Pew Research, College Board Advanced Placement program and National Reading project, 54% of teachers said that all or almost all of their students had access to digital tools such as computer and internet connection at school. Only 18% said the students had similar access to such tools at home. More than half of the teachers of the lowest income students, at 56%, said that students' lack of resources presents a major challenge to incorporating computers into their teaching. For teachers of students from mostly lower-middle income, that number was 48%. Overall, two-thirds of those using internet at public library said that they did research for school or work, revealed a survey conducted by Pew Research. Out of all age groups surveyed, 16 to 17 year olds were the group to access the internet the most. About 39% of them said that they had used a library computer or Wi-Fi in the last 12 months. For 18 to 29 year olds, that number was 38%. For 30 to 49, it was 31%. For parents of minors, that number was 34%.
benton.org/node/173231 | Guardian, The
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FIVE FAULTY PREMISES, PART 1: THE NEED FOR LOW-COST ACCESS TO HIGH-SPEED BROADBAND
[SOURCE: American Enterprise Institute, AUTHOR: Gus Hurwitz]
[Commentary] Does everyone need low-cost access to high-speed broadband? The challenging questions are at what level and by what means do we maintain the historical commitment to universal service. Many in the telecom policy space -- often those with the loudest voices -- have long advocated that every American needs access to high-performance telecommunications services (today, that is high-speed Internet service) at low cost. Indeed, everything the Federal Communications Commission does today is done with this goal, directly or indirectly, in mind. Where is the consumer in all of this? Those advocating high-speed broadband as a universal service often have more to gain from such programs than the median consumer. Firms like Google, that provide services and applications that run over communications infrastructure, are clear beneficiaries; as are networking equipment manufacturers. Politicians, too, often have much to gain from this strategy, as the costs of provisioning these networks are not transparent to voters and indirectly bourn. And the Ivory Tower is more likely to reward academics who promote regulatory programs that appear to advance social needs than those who argue against programs that appear to benefit the public interest. But just as communications technologies and the services that they facilitate are diverse, so too are consumer preferences. It is absolutely the case that there are basic services that we should do our best to ensure everyone has reasonable access to. But today we need to think more carefully about what these services are than we have historically needed. Most important, we should resist the urge to treat every American as though they have the same needs and wants as Washington, Silicon Valley, and Ivory Tower policy makers.
[Gus Hurwitz a visiting fellow at AEI's Center for Internet, Communications, and Technology Policy]
benton.org/node/173221 | American Enterprise Institute
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BITTORRENT THROTTLING IN US CREEPS BACK UP
[SOURCE: PCWorld, AUTHOR: Jared Newman]
Most US Internet users enjoy unfettered access to the Web. But that could be changing, if the upwardly creeping percentage of throttled BitTorrent users is any indicator. For more than five years, a Google-backed organization called Measurement Lab has offered a throttling detection program called Glasnost. The latest data from M-Lab, compiled by TorrentFreak, shows that 14 percent of US Glasnost users experienced slower speeds while using BitTorrent between December 2012 and December 2013. The United States fared well overall, ranking 10th among countries where at least 100 tests were performed. But compared to 2013 data, US service providers appear to be slowing down a greater percentage of BitTorrent connections. Cox, for instance, throttled 13 percent of connections over the last year, compared to 6 percent in the first quarter of 2012. Verizon jumped from 3 percent to 6 percent over the same period, though its percentages are still the lowest of the major service providers. Comcast, whose large-scale BitTorrent throttling in 2007 inspired M-Lab's research, jumped to 13 percent in the last year, from just 3 percent in the first quarter of 2012.
benton.org/node/173207 | PCWorld
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DO MUNICIPAL NETWORKS OFFER MORE ATTRACTIVE SERVICE OFFERINGS THAN PRIVATE SECTOR PROVIDERS?
[SOURCE: Phoenix Center, AUTHOR: George Ford]
[Commentary] Do municipal broadband providers offer lower prices than private firms for similar triple-play bundles as has been claimed? No. The evidence is clear. If anything, it appears that the prices of municipal providers are higher than that of their private-sector rivals for similar triple-play bundles. This evidence supports the notion that triple-play prices offered by commercial broadband service providers are today consistent with competitive outcomes.
benton.org/node/173247 | Phoenix Center
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WIRELESS/SPECTRUM

SPECTRUM SHARING: THE OPPORTUNITY IS NOW
[SOURCE: Public Knowledge, AUTHOR: Kevin Werbach]
[Commentary] We’re reaching a critical period in spectrum policy. Finding more wireless capacity has never been more important, and efforts on two major fronts are aiming toward that goal. If we truly hope to maximize the potential of the airwaves, and do so in a way that promotes innovation and competition, we must flip our baseline assumptions. Sharing spectrum should be the default, exclusivity the exception. Yet it’s quite possible that current efforts to free up spectrum will move in the opposite direction, even undermining already-authorized spectrum sharing opportunities. Fifteen years is a long time in technology-driven industries. The debate is still raging, but three very significant things have happened. First, wireless got big. . So the issues we’re fighting about mean a great deal. Second, the market has spoken. There was an open question in the mid-90s whether licensed or unlicensed bands would promote growth and innovation. The answer is pretty clear: unlicensed. Third, we don’t really have to choose between licensed and unlicensed. A frequency can be licensed and still shared, for example, if licenses are limited in the scope of the rights they grant. Similarly, unlicensed allocations can be designed to occupy an entire band, as with Wi-Fi, or structured to coexist with other systems. And where before companies lined up in the licensed camp unthinkingly, today some of the biggest investments in Wi-Fi and spectrum sharing come from companies like Comcast, Time Warner Cable, Cisco, and Qualcomm. Sharing is no longer a crazy idea at the fringes. This is not the right time to leave potential wireless capacity on the table.
[Werbach is an Associate Professor of Legal Studies and Business Ethics at the Wharton School, University of Pennsylvania]
benton.org/node/173229 | Public Knowledge
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ELECTIONS AND MEDIA

CANDIDATES VS THE NSA
[SOURCE: Politico, AUTHOR: Manu Raju]
Edward Snowden’s leaks didn’t just cause turmoil in the U.S. intelligence community, prompt international backlash toward President Barack Obama and revive a debate in Congress over civil liberties. They spawned a whole new breed on the 2014 campaign trail: The anti-National Security Agency candidate. Many of these candidates are unlikely to knock off well-financed incumbents. But for Republicans, the debate highlights the growing divide within the party over whether to move sharply away from the national-security hawk mindset that has prevailed since President Ronald Reagan.
benton.org/node/173249 | Politico
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NETWORK NEUTRALITY BECOMES A CAMPAIGN ISSUE
[SOURCE: National Journal, AUTHOR: Brendan Sasso]
The Federal Communications Commission’s network neutrality regulations have become a campaign issue in at least one competitive Senate race. Rep Bruce Braley (D-IA), who's running for the Senate in Iowa, urged supporters to sign a petition on his website supporting net neutrality. "If the FCC doesn't replace these rules, the free and open Internet could be a thing of the past," Rep Braley wrote. "Consumers want choice and open access in the Internet. They do not want huge telecommunications companies controlling what they see." Braley's petition urges FCC Chairman Tom Wheeler to "take immediate action on new rules designed to protect net neutrality." The e-mail to supporters also includes a link to donate to Braley's campaign.
benton.org/node/173315 | National Journal
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DISH AND DIRECTV COMBINE ADDRESSABLE AD EFFORTS FOR POLITICAL CAMPAIGNS
[SOURCE: AdWeek, AUTHOR: Jeanine Poggi]
Dish Network and DirecTV are combining their sales efforts for addressable TV advertising for political campaigns. The partnership will allow political campaigns to use both operators' addressable capabilities to target commercials at a household level, the companies said. Combined, DirecTV and Dish reach over 20 million households. Addressable TV advertising is currently available in 37 million households, one media buyer estimated, but advertisers would have to do separate deals with multiple satellite and cable companies to actually approach that kind of reach. Stitching two pay-TV systems' addressable offerings together is meant to make it easier for advertisers to target TV commercials on a wide scale. The move now was inspired partly by the use of data of in the most recent presidential election, executives at Dish and DirecTV said. The partnership will give campaigns the ability to show their messages to a precise set of potential voters and eliminate spending waste, said Keith Kazerman, senior VP-ad sales, DirecTV.
benton.org/node/173251 | AdWeek
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YES, THE RIGHT IS BEHIND ON CAMPAIGN TECH. BUT IT’S SEIZING THE MANTLE ON TECH POLICY.
[SOURCE: Washington Post, AUTHOR: Brian Fung]
When it comes to technology, Republicans are often said to lag behind Democrats. Conservatives are still learning to utilize voter data, a key liberal weapon in the last presidential race, to their advantage. Some GOP operatives say privately that the party remains dominated by a consultant class that's less than adept with the latest political technology. Yet even if they aren't quite as technically nimble on the campaign trail as their liberal counterparts, Republicans are starting to get in front of tech-related issues in an important way. It may not flip the outcome of any races anytime soon, but a growing Republican focus on tech may lead to a broader identity shift for the GOP that helps it draw in more money, more natural constituencies -- and perhaps more victories. The Republican National Committee took a big step in that direction with a vote rejecting the National Security Agency's bulk phone records collection. With the resolution, which calls the program "an intrusion on basic human rights," conservatives reversed a decade-long tradition (at least) of defending the spy agency from criticism. Not a single committee member opposed the vote, as MSNBC's Benjy Sarlin pointed out. That's remarkable when, as recently as last summer, the measure failed to get enough support for a vote at all. The resolution's passage officially puts the party on the right side of the surveillance issue for civil libertarians who accuse the NSA of an unconstitutional privacy violation.
benton.org/node/173203 | Washington Post
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GOOGLE EXEC BOOSTS GOP DATA EFFORT
[SOURCE: Politico, AUTHOR: Kenneth Vogel]
Michele Weslander Quaid, who serves as Google’s “Innovation Evangelist” and chief technology officer for its public-sector division, is joining the board of directors of Voter Gravity, a campaign technology company that serves GOP candidates and conservative groups. It’s a bit of a political coming-out for Weslander Quaid, who joined Google in 2011 and had not previously been active in partisan politics. The move comes as Google, which had become known in Washington as a reliable source of campaign cash and technology talent to Democrats, is working to diversify its political footprint. Weslander Quaid is certainly among – if not the – highest-ranking employee to lend expertise to a Republican tech company. She worked for a decade in the private sector as an engineer and data scientist, but was recruited after the 2001 terrorist attacks by the National Geospatial-Intelligence Agency, eventually working in senior technology roles for the Director of National Intelligence and the Defense Department during the administrations of both George W. Bush and Obama. Though she had been a registered Republican, Weslander Quaid switched her registration to independent around the time she entered government and has not donated to federal candidates of either party or openly affiliated with any political groups or companies until now.
benton.org/node/173245 | Politico
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OWNERSHIP

COMCAST EYES TIME WARNER CABLE'S EAST COAST MARKETS: SOURCE
[SOURCE: Reuters, AUTHOR: Liana Baker]
Comcast, in its talks with Charter about a possible deal to acquire parts of Time Warner Cable, would be interested in an agreement that gives Comcast the New York market and parts of New England, a person familiar with the matter said. Discussions between Comcast and Charter have gotten more substantive in recent days, partly because Comcast felt takeover target Time Warner Cable was seeking too high a price for itself, the person said. Comcast is interested in acquiring Time Warner Cable's New York City market since it already has operations in neighboring Connecticut and New Jersey, the person added. In New England, Comcast controls the Boston cable market and is also eying areas where it does not already have systems such as Maine, said the person, who asked not to be named because the matter is not public. Los Angeles, one of Time Warner Cable's largest markets, is less attractive to Comcast, the person said.
benton.org/node/173193 | Reuters
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HEALTH

'DIGITAL DIVIDE' PERSISTS IN HEALTH IT ADOPTION
[SOURCE: Fierce, AUTHOR: Susan Hall]
Adoption of electronic medical records by primary care physicians has grown substantially, but the "digital divide" between large and small physician practices persists, according to a new study from the Commonwealth Fund. Between 2009 and 2012, adoption grew from 46 percent to 69 percent. A majority of physicians use core health IT functions such as e-prescribing, electronic ordering of lab tests and certain types of clinical decision support. Practice size, however, is the major factor affecting adoption. Ninety percent in practices of 20 or more physicians use EMRs, compared to just half of those in solo practices. In 2012, 33 percent of primary care physicians could exchange clinical summaries with other doctors, and 35 percent could share lab or diagnostic tests with doctors outside their practice. Roughly one-third offered electronic access to patients. Physicians who are part of an integrated delivery system, such as Kaiser Permanente or the Veterans Administration, practices that share resources or those eligible for financial incentives have higher rates of health IT adoption. The report's authors suggest that technical assistance programs and financial incentives can help close this "digital divide." In addition, they say, physician practices remain behind schedule in their preparation for International Statistical Classification of Diseases and Related Health Problems.
benton.org/node/173297 | Fierce
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IF YOU GO TO SAN FRANCISCO …

TECH'S GROWING PROBLEM IN SAN FRANCISCO
[SOURCE: USAToday, AUTHOR: Jon Swartz]
[Commentary] In case you've missed it, Silicon Valley has its own version of Occupy Wall Street. This culture war lacks rampant arrests, bursts of violence or national media coverage, but the dissent of anti-gentrification groups over income and housing is creating a stir just the same. The impact of Silicon Valley’s workforce is creating an “eviction crisis" in San Francisco says Rebecca Gourevitch, an organizer with Eviction Free San Francisco. "A lot of people feel these companies make so much money, and … yet are oblivious." The protests highlight the yawning gap between those benefiting from the enormous wealth generated by the tech boom and those left behind. The average monthly rent here has soared 12%, to $3,096, from 2013, according to RealFacts. In San Jose, the average rental price is $2,124, up 10% from 2013; in Oakland, the average rent climbed 9%, to $2,015. Rent hikes have coincided with a migration of tech start-ups here, and the decision by many of their young employees to live in the city. The sweeping gentrification has not only altered the character of some neighborhoods, but alienated residents who complain of the self- entitled, boorish behavior of tech workers. Much is at stake -- with Twitter and Square recently moved into larger digs here -- and some tech leaders appear to be getting the message. They've promised to create more jobs and affordable housing.
benton.org/node/173237 | USAToday
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ENOUGH IS ENOUGH, SILICON VALLEY MUST END ITS ELITISM AND ARROGANCE
[SOURCE: Washington Post, AUTHOR: Vivek Wadhwa]
[Commentary] When computers were just for nerds and large corporations, Silicon Valley’s elite could get away with arrogance, insularity and sexism. In most industries, discriminating on the basis of gender, race, or age would be considered illegal. Yet in the tech industry, venture capitalists routinely show off about their “pattern recognition” capabilities. They say they can recognize a successful entrepreneur, engineer, or business executive when they see one. The pattern always resembles Mark Zuckerberg, Bill Gates, Jeff Bezos, or them: a nerdy male. Women, blacks, and Latinos are at a disadvantage as are older entrepreneurs. VCs openly admit that they only fund young entrepreneurs and claim that older people can’t innovate. Silicon Valley has an important role to play in solving the world’s problems. It is the epicenter of innovation. Most technologists I know have a social conscience and want to do whatever they can to make the world a better place. Yet the power brokers -- most venture capitalists, super-rich angel investors, and CEOs consistently show a disregard for social causes. They display a high level of arrogance, demand tax cuts for themselves, and have a don’t-care attitude. As demonstrated by the Perkins letter, this sends the wrong message to the world and holds Silicon Valley back. It is time for the Silicon Valley elite to smell the coffee and realize that the world has changed -- and that they must too. It is time for tech entrepreneurs to focus on solving big problems and giving back to the world. [Vivek Wadhwa is Vice President of Innovation and Research at Singularity University]
benton.org/node/173200 | Washington Post
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POLICYMAKERS

REMARKS OF FCC COMMISSIONER MICHAEL O’RIELLY BEFORE THE HUDSON INSTITUTE
[SOURCE: Federal Communications Commission, AUTHOR: Commissioner Michael O’Rielly]
Policy-makers in Washington, DC should be constantly on guard against unnecessary restrictions that interfere with the freedoms of any willing buyer or seller in our economy because, we have no idea what types of products or services our regulations may discourage from coming to market. Championing economic freedom will be my guiding principle when it comes to overseeing the communications industry. To inform my decisions, I will consider the following:
First, the Federal Communications Commission must consider whether it has the authority to regulate as well as realizing the confines of that authority.
Second, the FCC must have verifiable and specific evidence that there is market failure before acting. In many cases, competition and industry self-regulation are sufficient to ensure that services are provided and consumers are protected.
Third, when the FCC does intervene, its solution should be carefully tailored and apply only to the relevant set of providers or services. We must guard against over-regulating by analogy.
Fourth, the benefit of regulation must outweigh the burdens. Even when rules are grounded in the statute, based on evidence, addressing a real harm, and targeted at a specific problem, there are still costs to intervening, and we must consider those costs as part of our analysis. Let’s accept the reality that costs are always passed on to consumers one way or another.
When it comes to IP transitions, I believe that the FCC must ensure that its policies and regulations do not impede innovation so that providers are free to implement the latest technologies and services. When it comes to governing the forthcoming IP trials specifically, I suggest the following criteria.
First, any trials should not interfere with the choices that consumers are making every day to go with IP services.
Second, trials should not delay the FCC’s work. The trials won’t resolve many important legal and policy issues. Therefore, they should not serve as an excuse for delaying appropriate decisions.
Finally, it should be made clear that any rules the FCC establishes in the trials will be non-binding on what is happening outside of the trials or for future decisions. These trials should be exactly that: trials, not stalking horses for new regulations.
As we move forward, we should consider a variety of approaches to complete Universal Service Fund reform. For example, I am interested in deploying the Remote Areas Fund, which was intended to bring basic voice and broadband service to extremely high-cost areas through various technology platforms, including satellite and fixed wireless. As we continue to reform the various programs, we should look for ways to offset the costs of modernization within the existing budgets. Budgets make for hard choices. But those hard choices will force efficiency, encourage innovation, and benefit ratepayers. Finally, we need to take a close look at program management. Projected requirements -- which drive contributions -- are consistently much higher than the actual disbursements.
Incentive Auctions
Concerning incentive auctions, technically, the FCC will need to simultaneously integrate the reverse auction to obtain spectrum, with the forward auction to allocate the spectrum for wireless use, while “repacking” the remaining broadcasters. In order to be successful, we need many things to fall into place, including broadcaster participation because without them, the auction simply fails. Educating broadcasters about their options -- whether it be selling spectrum, channel sharing or moving from UHF to VHF -- will be an enormous challenge. Simplicity and transparency are paramount to providing broadcasters the certainty needed to decide to participate or continue to serve their communities.
When Congress extended the media ownership review from a two year to four year requirement, the intention was to ensure a thorough, competitive analysis of this space. Instead, what has resulted is regulatory paralysis. I am aware of the difficulties in completing this task and the corresponding legal challenges, including the 3rd Circuit’s ruling. Nevertheless, we are required to comply with the statute. Let’s face it, the media landscape has changed dramatically. We no longer live in a world where Americans obtain information solely from local broadcasters and newspapers. We have satellite providers, cable networks, the Internet, and mobile platforms. I am open to thoughtfully updating the FCC’s rules to reflect the realities of today’s media marketplace.
benton.org/node/173227 | Federal Communications Commission | Broadcasting&Cable
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FCC’S O’RIELLY: NET NEUTRALITY RULING WON’T CHANGE MARKETPLACE
[SOURCE: The Hill, AUTHOR: Kate Tummarello]
The recent federal court ruling overturning the Federal Communications Commission “network neutrality” rules will not radically change the market for Internet access, FCC Commissioner Michael O’Rielly said. While some worry that Internet providers will now begin charging bandwidth-heavy websites -- like Netflix or Google -- for better access to subscribers, Commissioner O’Rielly said he does next expect to see that change. “I’m not expecting the marketplace to change all that much going forward,” he said, citing ongoing conversations with Internet service providers. Instead, Commissioner O’Rielly predicted “a pretty stable marketplace.” “It’s in [the Internet providers] best interest to serve the customers,” he said. Commissioner O’Rielly said he “would be reluctant to impose new obligations in this space going forward” and declined to speculate as to how FCC Chairman Tom Wheeler will respond to the court’s ruling. The FCC’s authority over Internet providers was “intended by Congress to be rather narrow,” he said, citing his time as a Hill staffer during the 1996 Communications Act rewrite that led to the Telecommunications Act.
benton.org/node/173225 | Hill, The
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STORIES FROM ABROAD

AT&T WAITING
[SOURCE: Wall Street Journal, AUTHOR: Miriam Gottfried]
AT&T hasn’t hung up on its European ambitions, but the carrier may have good reason to wait, if it bids at all for UK-based Vodafone. AT&T was never anticipated to make a move until after the closure of Verizon Communications' deal to buy the rest of Verizon Wireless from Vodafone. That deal isn't expected to close until Feb. 21, provided Verizon shareholders approve it. In other words, AT&T seemingly had no choice but to say it wasn't interested. According to UK takeover laws, AT&T can't bid for Vodafone for six months, except under certain conditions. These include a bid backed by Vodafone's board, which could be feasible within the six-month time frame. Getting a bid done earlier would help AT&T avoid the risk of interest rates climbing before it raises debt to finance a deal. And delaying has its advantages. Waiting six months takes AT&T beyond the European parliamentary elections in May, which is also the deadline for a package of telecom-reform measures the European Commission is considering, according to Citigroup. Holding off also likely gets AT&T past a decision by regulators over whether to allow consolidation in the German wireless market, a crucial test case for the European telecom market. If these break in AT&T's favor, it might help boost the rationale for a deal that would come with few apparent synergies.
benton.org/node/173324 | Wall Street Journal
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