February 2014

The Case for Connectivity

[Commentary] Land was the raw material of the agricultural age. Iron was the raw material of the industrial age. Data is the raw material of the information age. Recent advancements in communications technology have created a dynamic global economy that is increasingly driven by new products, services and businesses reliant on data-rich environments. And unlike land or iron, data isn't a limited resource. It is infinitely reproducible and immediately accessible to everyone, everywhere via an Internet connection. At least it should be.

Currently, only about a third of all the people on earth have Internet access of any kind. Billions of people have never done so much as a single Google search, let alone -- searched for a job, taken a course or found medical information online. What would our world look like if everyone was connected?

In the end, overcoming the challenge of connectivity will require more than waiting for market forces to work their magic. It will require governments, NGOs, aid groups and policy makers to coordinate their efforts with market actors such as telecoms, hardware manufacturers, software developers and programmers to create sustainable economic models that ensure connectivity, once achieved, keeps improving. When people everywhere are no longer limited by the circumstances of their birth to the raw material of the information age and can participate in the global economy, we will inherit a world of greater opportunity, prosperity and understanding for everyone.

[Ross is Senior Fellow at Columbia University's School of International & Public Affairs]

Nobody knows what Netflix is actually paying Comcast. That’s a problem.

[Commentary] Will Netflix pass the cost of its new Comcast agreement onto its own customers? If so, would that cost be tripled or quadrupled if Netflix then signs separate deals with other Internet providers, such as Verizon? It's hard to say. Some, like Wedbush Securities analyst Michael Pachter, predict that Netflix will raise its prices in order to cover the cost. Others, like telecom analyst Jeff Kagan, say that dealing directly with Comcast won't incur any new costs for Netflix and could actually be cheaper for the company because it will no longer rely on third-party middlemen to route videos to Comcast subscribers. Neither Netflix nor Comcast is talking specifics about the deal, but it has spawned a great deal of speculation on the issue.

The central problem here is a lack of information. We don't know how Comcast's deal with Netflix is structured and how much money is changing hands. That makes it hard to judge whether critics are right when they claim Comcast is engaging in anticompetitive business practices. And it makes it hard to know whether consumers will wind up paying more as a result of the deal. We could fix this by having the government require Comcast to be more forthcoming about its Netflix relationship.

Is the FCC Moving Too Fast on Wireless 911 Location Accuracy?

The Federal Communications Commission announced it would adopt new rules to ensure better location accuracy results for wireless 911 calls. But while public safety advocates have applauded the move, the industry is urging caution, citing technology concerns.

CTIA -- The Wireless Association, which represents the major wireless carriers, has called for the FCC to base its rules on verified data, not aspirational goals. CTIA pointed to results from the Communications, Security, Reliability & Interoperability Council (CSRIC)’s Location Accuracy Test Bed in 2013 that indicates further technology development is needed to locate indoor wireless callers. Brian Josef, assistant vice president, regulatory affairs, for CTIA, said that arguably the best-performing technology in the test bed only located a call coming from the correct building one-third of the time. “The concern from the industry standpoint is, you’re going to subject carriers to enforceable rules that are not consistent with the technology as it exists today, but also don’t reflect a viable timeline [to get the technology more reliable],” Josef said. “That’s why we believe that these rules, as proposed, are aspirational. That’s the reluctance on the part of the industry.”

Facebook mobile drives 51% of referrals

Shareaholic, a content discovery and sharing platform, found in a recent report that 51 percent of Facebook referrals come from mobile.

The new findings are a follow-up to Shareaholic’s October report, which includes four extra months of data. What they found is that Facebook mobile is sending more referrals, meaning the mobile base continues to grow along with Facebook’s overall user base. They also found:

  • Since September, the share of visits from Facebook mobile increased 197 percent.
  • Overall, Facebook mobile drove 8.25 percent of the visits Shareaholic’s network of 200,000+ sites reaching 250+ million uniques received in January.
  • Since Facebook’s total share of visits was 16.21 percent, mobile made up more than half (nearly 51 percent) of Facebook referrals.

Intelligence Panel Chief Says No Majority to Shift Custody of NSA Data

House Intelligence Committee Chairman Mike Rogers (R-MI) says there is not a majority on the panel to support giving private companies custody of the federal government’s database of phone-call metadata.

Chairman Rogers said he doesn’t think such a proposal, which he opposes, would clear his panel -- the first time he’s made such a statement. “Given my conversations, I think, today, that would have a hard time passing,” Chairman Rogers said, adding that he’s spoken with both Republicans and Democrats. Still, he said, the proposal is “still on the table.”

EU Parliament Postpones Telecoms Package Vote

European Union parliamentarians unexpectedly delayed voting on the proposal for a single telecoms market, citing a technicality that amendments to the legislation hadn't been translated fully, as some lawmakers expressed doubts about network neutrality.

The proposal was put forward by the bloc's executive arm in 2013. The Parliamentary Committee on Industry, Research and Energy had been set to vote, determining how the parliament as a whole would vote in the April plenary session. While this timetable can still be met, lawmakers will have time to review amendments again before the committee votes again.

Apple Joins Samsung in Telling EU to Cut Patent Trolls’ Power

Apple and Samsung Electronics, which have sued each other around the globe over patents, joined together to tell the European Union to cut down on the ability of companies that license patents to win court rulings limiting product sales.

Apple and Samsung are among 19 companies and associations that told the EU in a letter that a new court should limit the ability of companies that license technology to win court injunctions when the validity of the underlying patent is in dispute. The proposal would bring the EU closer to the US, where it’s almost impossible for patent owners who don’t make products to block the sales based on a finding of infringement. Even direct competitors like Apple and Samsung have been stymied in their efforts to halt sales of infringing devices in the US.

LinkedIn goes to China

The online resume site LinkedIn wants to make inroads in China. The web company announced a major expansion into the world’s second-largest economy with plans to create a simplified Chinese site and add more than 140 million people to its network. “Our mission is to connect the world’s professionals and create greater economic opportunity -- and this is a significant step towards achieving that goal,” said Derek Shen, the company’s president for China. LinkedIn’s English version has been available in China for more than a decade, and there are about 4 million people currently signed up. But LinkedIn thinks that’s just a drop in the bucket of what is possible. The decision is a big step for an American web company. Major Silicon Valley firms have been reticent to break into the emerging market, which offers half a billion web users but is also known for online censorship dubbed the “Great Firewall.” “LinkedIn strongly supports freedom of expression and fundamentally disagrees with government censorship,” said Jeff Weiner, LinkedIn’s CEO.

Netflix-Comcast deal ends Internet consumption dispute

The landmark deal between Comcast and Netflix resolves a simmering dispute over who will support America's growing Internet video habit. Netflix has agreed to pay Comcast for a direct connection to the cable operator's broadband networks to ensure that Netflix customers receive an uninterrupted viewing experience when streaming movies and TV shows.

The agreement comes after Netflix customers complained about deteriorating service, as videos they tried to watch stuttered and stalled in midstream. The difficulties highlight the increasing problem of Internet network congestion. The nation's data lines were not designed with enough capacity to handle today's crush of traffic — particularly during peak hours. Experts for years have been warning about a looming online traffic jam. Netflix gobbles up about 30% of Internet traffic during evening hours, and that percentage is expected to swell as more people subscribe to the popular streaming service. The company is undergoing one of the fastest growth spurts in the industry, boasting more than 33 million subscribers in the U.S. -- a nearly threefold increase from four years ago. But video streaming quality had become a problem. To improve the quality of its streaming service, Netflix had been commissioning third parties, such as Cogent Communications, to deliver its video traffic across the Internet to Comcast and other Internet providers. But Netflix wanted to cut out the middleman and deal directly with Comcast.

Internet.org Announces SocialEDU

SocialEDU is a Internet.org pilot initiative that will provide students in Rwanda with free access to a collaborative online education experience. How did we do this? By bringing together the right partners. We worked with the Rwandan government, a telecommunications company, a device manufacturer and an educational content provider to develop a plan to provide students with free, high-quality, localized educational content and create a social learning experience that is accessible via handheld devices. The initiative builds on the success of MOOCs (Massive Open Online Courses) by making it possible to access high-quality educational content affordably. At its core, SocialEDU addresses five critical barriers to access by bringing together:

  • Free content
  • Free data
  • Affordable smartphones
  • Localized, social educational experience
  • A government that supports innovation