April 2014

Net Neutrality: We Need a Better Deal

[Commentary] The Federal Communications Commission’s new proposal for Net Neutrality rules include effectively abolishing it: proposing preferential treatment for certain traffic.

In the wake of February’s Netflix and Comcast deal, it becomes obvious that only companies willing to pay for access have traffic worthy of preferential treatment. The open Internet has been paywalled shut. This is by its very definition discrimination.

We have fundamentally wronged the Internet. The FCC is regulating what code did not. The architecture of the Internet is not built for 21st century content consumption.

But now many smart researchers are already thinking about this problem. Broadly speaking, this re-imagined Internet is often called Content Centric Networking.

The closest working example we have to a Content Centric Network today is BitTorrent. What if heavy bandwidth users, say, Netflix, for example, worked more like BitTorrent? If they did, each stream -- each piece of content -- would have a unique address, and would be streamed peer-to-peer.

That means that Netflix traffic would no longer be coming from one or two places that are easy to block. Instead, it would be coming from everywhere, all at once; from addresses that were not easily identified as Netflix addresses -- from addresses all across the Internet. To the ISP, they are simply zeroes and ones. All equal.

[Klinker is CEO BitTorrent]

Meet the Tech-Savviest Legislators in the US

Technology has become a major factor in many of the proposals introduced by lawmakers during state legislative sessions. But it can be difficult to zero-in on the elected leaders who have their fingers on the pulse of and are truly engaged in the latest tech issues -- until now.

Government Technology has produced a list of 13 state senators and representatives who have shown a keen interest in and willingness to tackle technology policy and legislation. The legislators included on the interactive map were based on recommendations from the National Association of State Chief Information Officers (NASCIO), the National Association of Counties (NACo) the National Conference of State Legislatures (NCSL), the Council of State Governments (CSG) and other experts. Those recommendations were researched and vetted by Government Technology Senior Writer Brian Heaton and Managing Editor Noelle Knell.

These include: Washington Rep Reuven Carlyle (D-Seattle); Nebraska Sen Dan Watermeier, (Lincoln); Illinois Sen Ira Silverstein (D-Chicago); Illinois Sen Don Harmon (D-Oak Park); California Sen Alex Padilla (D-Pacoima); Minnesota Sen Matt Schmit (DFL-Red Wing); Washington Rep Jeff Morris (D-Mount Vernon); North Dakota Rep Blair Thoreson (R-Fargo); and Minnesota Rep Joe Atkins (DFL-District 52B).

JD Power: Buyers are Paying More Attention to Smartphone Pricing

Smartphone pricing is becoming more important to buyers as the smartphone technological playing field has leveled, according to Volume 1 of the JD Power 2014 Wireless Smartphone Satisfaction Study.

Just over one-fifth (21 percent) of smartphone owners cited price as the main reason they chose to purchase a particular smartphone, up from 13 percent in JD Power’s 2011 study.

AT&T ranked tops among US telecompetitors in terms of smartphone-device customer satisfaction, scoring 844 out of a possible 1,000 points.

Sprint ranked second at 839, T-Mobile third at 835, and Verizon Wireless fourth with a score of 829.

Overall satisfaction among smartphone owners totaled 837, according to a JD Power press release, with Apple ranking highest among smartphone original equipment manufacturers among Tier 1 wireless carriers.

The Web Is Not Actually Getting Any More Global

“The Internet is creating a global community,” a thought leader probably said recently. But take a closer look at Internet traffic data, and the theory that the web is turning the world into a borderless digital utopia doesn’t hold up.

There’s no question that Internet traffic in general is skyrocketing. And more of this data crosses borders than ever before. Global flows in a digital age, a report released by McKinsey Global Institute, attempts to quantify the circulation of three major types of “flows”: financial, human, and digital.

Using data from TeleGeography, McKinsey estimates that the total transfer of data across borders has increased 20-fold from 2005 to 2012, from 2.2 trillion megabytes per second to over 41 trillion. This is a dramatic rise, no doubt, but a little context makes it clear that data flow -- or the growth of that flow -- is not inherently international. In fact, cross-border web traffic has barely kept up with the sum total of Internet activity. The vast majority of digital transactions are still domestic.

Three Ways Mesh Networks with Peer-to-Peer Connections Can Revolutionize Communications (without the Internet)

Imagine a mobile application where you can share messages and photos with other users, but without an Internet connection.

These applications take advantage of mesh networking. In a mesh network devices use Bluetooth peer-to-peer connections and Wi-Fi networks to communicate “off the grid“.

Engineers originally developed the technology for the military. Over the years small scale projects have found varying levels of success but few have broken through to the mainstream.

The newest version of iOS has incorporated mesh networks into its operating system, which allows developers to create applications that take advantage of this technology without having to reinvent the wheel. Beyond messaging applications, mesh networks have the potential to make hard-wired Internet devices obsolete.

Mesh networking has a number of policy implications. Here are a few that TechTank will look out for in the future:

  1. Natural Disasters
  2. Promoting Democracy and Activism
  3. Expanding Connectivity Benefits to Rural Areas

April 25, 2014 (The Next Chapter in the #NetNeutrality Saga)

BENTON'S COMMUNICATIONS-RELATED HEADLINES for FRIDAY, APRIL 25, 2014

A look ahead at next week’s agenda http://benton.org/calendar/2014-04-27--P1W/


INTERNET/BROADBAND
   The Next Chapter in the #NetNeutrality Saga - analysis
   FCC Establishes New Inbox for Open Internet Comments - press release
   The Case Against ISP Tolls - Netflix press release
   Comcast Response to Netflix - press release
   Google may offer Wi-Fi for cities with its Google Fiber [links to web]

AGENDA
   Net Neutrality, Incentive Auctions on FCC’s May Agenda - press release
   FCC Establishes New Inbox for Open Internet Comments - press release

WIRELESS/SPECTRUM
   FCC Commissioner Ajit Pai: FCC picking ‘winners and losers’ for spectrum auctions - speech
   FCC Approves T-Mobile's 700 MHz A Block Deal with Verizon [links to web]
   California Senate Rejects Smartphone ‘Kill Switch’ Law
   Microsoft Completes Nokia Phone-Unit Purchase in Push to Mobile [links to web]
   Verizon loses phone customers as price competition heats up
   AT&T, FCC Trying to Work Out Aggregation Item Issues
   Verizon Wireless sells out customers with creepy new tactic
   Google may offer Wi-Fi for cities with its Google Fiber [links to web]
   Yes, the Internet of things will be great, once we get the mess untangled - editorial [links to web]
   Using Technology To Fix The Texting While Driving Problem [links to web]

TELEVISION
   Coverage Tops Stations' Repack Concerns
   Netflix to become real TV and get its own ‘cable channel’
   Local Television Revenue Expected to Reach Over $20 Billion in 2014 - press release [links to web]
   Comcast-Verizon Battle Intensifies as US Hits Peak TV [links to web]
   You Kids Are Still Watching -- And Paying for -- TV, Says Pay TV Giant [links to web]
   FCC OKs Nexstar Purchase of Hoak Stations [links to web]
   The Cloud Industry Needs Aereo to Win. But Consumers Need Something Better. - analysis

LABOR
   Tech Companies Agree to Settle Wage Suit

CONTENT
   Avi Lerner Rips the President for Not Fighting Piracy: ‘Obama is Scared of Google’ [links to web]
   Tweet Suits: Social Media And The Law [links to web]

CHILDREN AND MEDIA
   Microsoft 'Siri-killer' muzzled by Fed rule [links to web]

PRIVACY/SECURITY
   Verizon Wireless sells out customers with creepy new tactic

EMERGENCY COMMUNICATIONS
   A survey of 911 dispatchers reveals the horrible, human cost of bad technology

HEALTH
   Rural Hospitals Weigh Independence Against Need For Computer Help

GOVERNMENT PERFORMANCE
   Oregon's Health Care Website Is Worse Than Healthcare.Gov [links to web]

GOVERNMENT & COMMUNICATIONS
   Feds Beg Supreme Court to Let Them Search Phones Without a Warrant

LOBBYING
   Consumer Watchdog: Google Lobbying Budget Outpaces All Other Tech Heavyweights

COMPANY NEWS
   Facebook’s Fitness App Buy Is About Location, Location, Location - analysis [links to web]
   Announcing FB Newswire, Powered by Storyful - Facebook press release [links to web]
   Time Warner Cable chief defends merger plan with Comcast [links to web]

STORIES FROM ABROAD
   Russia's Bloggers To Face Stifling Restrictions Under New Law
   Russia's Putin Calls the Internet a 'CIA Project'
   Web giant Sina caught in China's 'lewd and pornographic' crackdown
   Mexican law would liberalize telecoms, but critics spy censorship
   Saudi Arabia Plans to Regulate Local YouTube Content
   Google braced for French tax demand [links to web]

MORE ONLINE
   Gov Brown Getting the Message on California's Film, TV Tax Credit Troubles [links to web]

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INTERNET/BROADBAND

THE NEXT CHAPTER IN THE NET NEUTRALITY SAGA
[SOURCE: Benton Foundation, AUTHOR: Kevin Taglang]
[Commentary] On April 23, the Wall Street Journal broke news that the Federal Communications Commission would, the very next day, propose new network neutrality rules to ensure that Internet service providers treat all Internet traffic equally. The idea is that consumers should be able to access whatever content they choose, not the content chosen by the broadband provider. But the WSJ highlighted that the FCC’s proposal would allow broadband providers to charge companies a premium for access to their fastest lanes. So, obviously, all hell broke loose.
http://benton.org/node/181042
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THE CASE AGAINST ISP TOLLS
[SOURCE: Netflix, AUTHOR: Ken Florance]
[Commentary] As the person at Netflix responsible for content delivery, I spend a lot of time thinking about Netflix’s Open Connect CDN and its interconnection with Internet service providers (ISPs). Netflix has a mutually beneficial relationship with nearly every ISP in every market where we provide service. But this is less the case for the largest ISP in the US, Comcast, which is trying to become even larger by acquiring Time Warner Cable. For a content company such as Netflix, paying an ISP like Comcast for interconnection is not the same as paying for Internet transit. Transit networks like Level3, XO, Cogent and Tata perform two important services: (1) they carry traffic over long distances and (2) they provide access to every network on the global Internet. When Netflix connects directly to the Comcast network, Comcast is not providing either of the services typically provided by transit networks. Comcast does not carry Netflix traffic over long distances. Netflix is itself shouldering the costs and performing the transport function for which it used to pay transit providers. Netflix connects to Comcast in locations all over the US, and has offered to connect in as many locations as Comcast desires. So Netflix is moving Netflix content long distances, not Comcast. Nor does Comcast connect Netflix to other networks. In fact, Netflix can’t reach other networks via Comcast’s network. For all these reasons, Netflix directly interconnects with many ISPs here in the US and internationally without any exchange of fees. In sum, Comcast is not charging Netflix for transit service. It is charging Netflix for access to its subscribers. Comcast also charges its subscribers for access to Internet content providers like Netflix. In this way, Comcast is double dipping by getting both its subscribers and Internet content providers to pay for access to each other. [Florence is vice president of content delivery at Netflix]
benton.org/node/181059 | Netflix | The Verge | GigaOm
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COMCAST RESPONSE TO NETFLIX
[SOURCE: Comcast, AUTHOR: Jennifer Khoury]
Netflix’s argument is a House of Cards. But there is no need for us to engage in a point-counterpoint with Netflix to demonstrate the continued distortions and inaccuracies on which it relies. As we and other industry observers have already noted, Netflix’s decision to reroute its Internet traffic was all about improving Netflix’s business model. While it’s understandable for Netflix to try to make all Internet users pay for its costs of doing business (as opposed to just their customers), the company should at least be honest about its cost-shifting strategy. Comcast has a multiplicity of other agreements just like the one Netflix approached us to negotiate, and so has every other Internet service provider for the last two decades. And those agreements have not harmed consumers or increased costs for content providers – if anything, they have decreased the costs those providers would have paid to others. As at least one independent commentator has pointed out, it was not Comcast that was creating viewability issues for Netflix customers, it was Netflix’s commercial transit decisions that created these issues. No ISP in the country has been a stronger supporter of the Open Internet than Comcast – and we remain committed both to providing our customers with a free and open Internet and to supporting appropriate FCC rules to ensure that consumers’ access to the Internet is protected in a legally enforceable way.
benton.org/node/181557 | Comcast
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AGENDA

FCC ANNOUNCES TENTATIVE AGENDA FOR MAY OPEN MEETING
[SOURCE: Federal Communications Commission, AUTHOR: Press release]
Federal Communications Commission Chairman Tom Wheeler announced that the following items will be on the tentative agenda for the next open meeting scheduled for Thursday, May 15, 2014:
Incentive Auction: The Commission will consider a Report and Order that adopts key policies and rules for the broadcast television spectrum incentive auction, laying the groundwork for an unprecedented, market-driven process for repurposing spectrum for mobile broadband use, and promoting competition and innovation.
Mobile Spectrum Holdings: The Commission will consider a Report and Order that modifies the Commission’s policies and adopts rules regarding the aggregation of spectrum for mobile wireless services through initial licensing and secondary market transactions to preserve and promote competition.
Wireless Microphones: The Commission will consider a Report and Order that provides a limited expansion to the class of wireless microphone users eligible for a license.
Protecting and Promoting the Open Internet: The Commission will consider a Notice of Proposed Rulemaking addressing the D.C. Circuit Court of Appeals’ remand of portions of the Commission’s 2010 Open Internet Order and proposing enforceable rules to protect and promote the open Internet.
benton.org/node/181570 | Federal Communications Commission
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INBOX FOR OPEN INTERNET
[SOURCE: Federal Communications Commission, AUTHOR: Press release]
The Federal Communications Commission will consider proposed rules to protect an Open Internet on May 15. The proposed rules will ask questions about how best to ensure the Internet remains an open platform for innovation and expression. FCC Chairman Tom Wheeler is encouraging the public to share their views now. He intends to have rules of the road in place before the end of the year to protect consumers and entrepreneurs. He will be listening, and your comments will help inform the final rules. Please send your thoughts to openinternet@fcc.gov
benton.org/node/181567 | Federal Communications Commission
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WIRELESS/SPECTRUM

OPENING REMARKS OF FCC COMMISSIONER AJIT PAI AT THE MOBILE FUTURE FORUM, “DESIGNING FOR AUCTION SUCCESS: LESSONS LEARNED FROM AROUND THE WORLD”
[SOURCE: Federal Communications Commission, AUTHOR: FCC Commissioner Ajit Pai]
Right now, I worry that the greatest obstacle in our way might be the [Federal Communications Commission] itself. In order for the incentive auctions to succeed, we must have robust competition among wireless carriers for licenses in the forward auction. Or, as a friend of mine might put it, “competition, competition, competition.” But unfortunately, the plan reportedly on the table appears to go in the opposite direction. It restricts competition. Certain companies selected by the government will be shielded from competing against other companies. Instead of good, old-fashioned competition, the chosen few would have spectrum set aside especially for them. My position on the forward auction is simple: The FCC should not limit carriers’ ability to participate. We should not pick winners and losers. The inevitable effect of a policy that limits participation will be less spectrum for mobile broadband, less funding for national priorities, a higher budget deficit, and an increased chance of a failed auction.
benton.org/node/181046 | Federal Communications Commission | The Hill
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CALIFORNIA SENATE REJECTS SMARTPHONE ‘KILL SWITCH’ LAW
[SOURCE: New York Times, AUTHOR: Brian Chen]
The California Senate voted down a state measure that would require smarter antitheft security on smartphones. The bill, introduced by State Senator Mark Leno and sponsored by George Gascón, San Francisco’s district attorney, would have required a so-called kill switch -- which would render a smartphone useless after it was stolen -- on all smartphones sold in California. The proposal needed 21 votes to pass in the 40-member chamber. After debate at the Capitol, in Sacramento, it fell two votes short of passing, with a final count of 19 to 17 in favor. CNET had reported the bill’s failure earlier. One concern raised by some senators who opposed the bill was that businesses might feel that California was being overly strict about regulating technology, which could discourage tech companies from doing business there. The measure could be brought up for reconsideration again before the end of May.
benton.org/node/181062 | New York Times
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VERIZON LOSES PHONE CUSTOMERS AS PRICE COMPETITION HEATS UP
[SOURCE: GigaOm, AUTHOR: Kevin Fitchard]
Verizon Wireless has largely stayed out of the pricing battle waged between AT&T and T-Mobile, but it revealed it’s suffering a casualty or two as well. The country’s dominant carrier lost core phone customers in the first quarter of 2014. Verizon didn’t have a bad quarter by any means. It increased its customer base by 539,000 retail postpaid connections, down from its 720,000 net additions in 2013. But all of those new connections came from customers connecting 4G tablets to Verizon’s network. Verizon signed up 634,000 net new tablet connections, increasing its total base on connected slates by 15 percent in a single quarter, to 4.3 million devices. Verizon added 866,000 new LTE smartphones to its network in Q1, and those pricier devices tend to produce higher-value customers who invest in bigger data plans. Where are those low-end phone customers going? The obvious answer is T-Mobile, which has been hitting its competitors over the head with its Un-carrier pricing and promotional lures for the last year. But AT&T is also a likely destination.
benton.org/node/181037 | GigaOm | Multichannel News
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AT&T, FCC TRYING TO WORK OUT AGGREGATION ITEM ISSUES
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
AT&T has indicated that how the Federal Communications Commission structures the broadcast incentive auction could affect whether or not it participates, but it appears still to be trying to work it out with the commission. The FCC is expected to circulate a spectrum aggregation item on April 24 that could potentially limit the low-band spectrum available to AT&T, but there are suggestions from recent interactions between AT&T execs and the commission that the item could be on its way to something AT&T could support. The item would not be voted on until May 15 and other commissioners can still make suggested edits and changes, so it could, and likely is, still a work in progress. According to ex parte filings, AT&T Chairman Randall Stephenson got on the phone with FCC Chairman Tom Wheeler to talk about "issues" raised by AT&T about the auctions -- as well as to brief him on AT&T's plans to expand fiber deployment.
benton.org/node/181060 | Broadcasting&Cable
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TELEVISION

COVERAGE TOPS STATIONS' REPACK CONCERNS
[SOURCE: TVNewsCheck, AUTHOR: ]
In two meetings with Federal Communications Commission Chairman Tom Wheeler, broadcasting representatives underscored their concern that the FCC's incentive auction and collateral repacking of the TV band would force "many hundreds of broadcasters" to move to new channels and diminish their over-the-air coverage, according to an account of the meeting issued by the representatives. The meetings may have been the last formal opportunity for the reps to meet with Chairman Wheeler before the FCC adopts its incentive auction order on May 15. The broadcasters' concern about losing coverage stems from the FCC's plan to use a modified version of the OET-69 coverage model in calculating the coverage of stations in the repacking of the band. Because OET-69 is "hotly contested," the reps said, the FCC should open a separate rulemaking to consider making modifications to it. "Following that rulemaking, if it is determined that some change is both lawful and occurs, then that change (or those changes) must be flagged and no further changes should be made outside of an OET-69 notice and comment rulemaking review."
benton.org/node/181038 | TVNewsCheck
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NETFLIX ON CABLE
[SOURCE: Washington Post, AUTHOR: Brian Fung]
Netflix has reached an agreement with three cable companies that, for the first time, will let US subscribers watch the streaming video service as though it were an ordinary cable channel. The deal will add Netflix as an app to certain set-top boxes nationwide on RCN, Grande Communications and Atlantic Broadband. It gives subscribers of those companies the ability to watch all the same Netflix content they would otherwise be able to get on their PCs, tablets and phones. Altogether, the agreement covers as many as 500,000 of the cable firms' existing subscribers -- though that figure could grow as more customers sign up for the offering. The offer is limited to those who are both a customer of the three cable companies and a subscriber to Netflix. In addition, the technology requires a cable-provided TiVo box. Although consumers can currently buy TiVos from retail stores that come with the Netflix app, until now cable-provided boxes lacked the Netflix functionality. In order to make the deal possible, Netflix said it had to negotiate with some of its content partners to allow streaming on cable boxes. All Americans with service from one of the three cable companies will be eligible for the offering beginning April 28, company officials said.
benton.org/node/181559 | Washington Post | SJ Mercury News
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CLOUD INDUSTRY NEEDS AEREO WIN
[SOURCE: New York Times, AUTHOR: Farhad Manjoo]
[Commentary] The best way to think about Aereo, the company at the center of this week’s Supreme Court battle over the future of computing, is as an example of legal performance art. Aereo is based entirely on a legalistic leap of faith: If it’s legal to set up an antenna and record a TV show at your own house, which it is, shouldn’t it also be legal to rent an antenna and server space at a big data center, and then stream the show over the Internet to your computer, tablet or set-top box? It’s a clever argument, one that highlights the extreme lengths that tech companies go to in order to avoid copyright restrictions. The argument is designed to show off the similarities between Aereo and more traditional cloud services like Dropbox -- services that the Supreme Court would have to strive mightily to separate out of any ruling against Aereo. But for all its cleverness, Aereo is also a gimmick. Aereo is a for-pay, middleman service whose sole function is to let you stream TV shows that are already freely available over the air. For consumers, the best outcome of this case is for Aereo to win, and then scare broadcasters into streaming their content directly to users, either for free or for a lower price than Aereo charges.
benton.org/node/181041 | New York Times
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LABOR

TECH COMPANIES AGREE TO SETTLE WAGE SUIT
[SOURCE: Wall Street Journal, AUTHOR: Jeff Elder]
Four big Silicon Valley technology companies agreed to settle a lawsuit in which 64,000 employees accused them of conspiring not to recruit each other's workers, depressing wages. Terms of the settlement involving Apple, Google, Intel and Adobe Systems weren't immediately released. The settlement was confirmed by Kelly Dermody, a lawyer for the plaintiffs at Lieff Cabraser Heimann & Bernstein LLP. "This is an excellent resolution of the case that will benefit class members," Dermody said.
benton.org/node/181055 | Wall Street Journal | Reuters | Revere Digital | The Verge | GigaOm
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PRIVACY/SECURITY

CREEPY VERIZON WIRELESS
[SOURCE: Los Angeles Times, AUTHOR: David Lazarus]
Verizon Wireless is "enhancing" its Relevant Mobile Advertising program, which it uses to collect data on customers' online habits so that marketers can pitch stuff at them with greater precision. "In addition to the customer information that's currently part of the program, we will soon use an anonymous, unique identifier we create when you register on our websites," Verizon Wireless is telling customers. "This identifier may allow an advertiser to use information they have about your visits to websites from your desktop computer to deliver marketing messages to mobile devices on our network," it says. That means exactly what it looks like: Verizon will monitor not just your wireless activities but also what you do on your wired or Wi-Fi-connected laptop or desktop computer -- even if your computer doesn't have a Verizon connection. The company will then share that additional data with marketers.
benton.org/node/181565 | Los Angeles Times
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EMERGENCY COMMUNICATIONS

A SURVEY OF 911 DISPATCHERS REVEALS THE HORRIBLE, HUMAN COST OF BAD TECHNOLOGY
[SOURCE: Washington Post, AUTHOR: Brian Fung]
Find Me 911, a coalition of first-responders, issued a new report on wireless 911 calls. The group, which includes the U.S. First Responders Association and the American Academy of Emergency Medicine, surveyed some 1,000 public safety answering points (PSAPS) nationwide -- amounting to roughly 15 percent of all 911 call centers, according to spokesman Andrew Weinstein. "It just hit a nerve," said Weinstein. "Across the board, they're saying they have regular problems getting data, and strongly, almost to a PSAP, they say that they are regularly getting calls from callers who cannot give locations for one reason or another." Of the 1,000 respondents, only 187 call centers reported "a great deal" of confidence in the location data they receive from wireless carriers. The Federal Communications Commission estimates that upwards of 70 percent of all emergency calls take place from a cell phone. Of those, 64 percent come from indoors, the report finds. That's problematic because many phones today are impossible to find with the pinpoint accuracy that first-responders need to locate someone in a crisis. Assisted GPS -- the technology that helps Google Maps tell you where you are -- requires a cellular connection and good line of sight to multiple satellites. But if you're indoors and have poor reception, you'll likely be out of luck. There are obvious privacy concerns that come along with using geolocation data to find cell phone users. In a life-threatening emergency, though, most people would probably consider setting those aside.
benton.org/node/181040 | Washington Post
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HEALTH

RURAL HOSPITALS WEIGH INDEPENDENCE AGAINST NEED FOR COMPUTER HELP
[SOURCE: National Public Radio, AUTHOR: Eric Whitney]
One of the biggest challenges American hospitals face right now is moving to electronic medical records from old-fashioned paper files. The switch is costing tens of billions of dollars, eating up tons of staff time, and it's especially tough for the country's 2,000 rural and small-town hospitals. Rural hospitals are typically short on cash and people with information technology skills. So a lot of small hospitals are turning to bigger hospitals for help, and giving up some independence in exchange. The 10-bed Beartooth Billings Clinic in Red Lodge (MO), a historic mining town just outside Yellowstone National Park and 60 miles west of Billing is one hospital that did. Sharing electronic records sounds simple. But for a lot of little hospitals doing that while meeting new federal digital standards means coming up with $1 million or more up front. That's a tall order, when the average rural hospital runs at a financial loss of 8 percent a year. So the Red Lodge hospital became part of the bigger Billings Clinic system, in part to get help with IT.
benton.org/node/181064 | National Public Radio
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GOVERNMENT & COMMUNICATIONS

FEDS BEG SUPREME COURT TO LET THEM SEARCH PHONES WITHOUT A WARRANT
[SOURCE: Wired, AUTHOR: Andy Greenberg]
American law enforcement has long advocated for universal “kill switches” in cellphones to cut down on mobile device thefts. Now the Department of Justice argues that the same remote locking and data-wiping technology represents a threat to police investigations -- one that means they should be free to search phones without a warrant. In a brief filed to the US Supreme Court in the case of alleged Boston drug dealer Brima Wurie, the Justice Department argues that police should be free to warrantlessly search cellphones taken from suspects immediately at the time of arrest, rather than risk letting the suspect or his associates lock or remotely wipe the phone before it can be searched. The statement responds to briefs made to the court by the Center for Democracy and Technology and the Electronic Frontier Foundation arguing that warrantless searches of cellphones for evidence represents a serious violation of the suspect’s privacy beyond that of a usual warrantless search of a suspect’s pockets, backpack, or car interior. benton.org/node/181034 | Wired
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LOBBYING

CONSUMER WATCHDOG: GOOGLE LOBBYING BUDGET OUTPACES ALL OTHER TECH HEAVYWEIGHTS
[SOURCE: telecompetitor, AUTHOR: Andrew Burger]
High-tech and telecom companies continue to spend ever-greater amounts to win friends and influence people in the US government, hoping to push their agenda, according to the latest analysis of lobbying disclosure forms by Consumer Watchdog. At $3.82 million and up 14 percent from $3.35 million in the year-ago period, the Google lobbying budget ranked the highest on Consumer Watchdog’s list of the top 15 technology and telecommunications companies in terms of spending on federal government lobbying in 1Q 2014. Comcast, as it seeks to gain approval for its merger with Time Warner Cable, ranked second, spending $3.09 million on federal lobbying in 1Q. Noting that AT&T and Verizon typically outspend their high-tech counterparts, Consumer Watchdog said AT&T spent $3.67 million and Verizon $3.55 million on lobbying in 1Q. The vast amounts of money companies are spending to influence federal lawmaking and regulations poses serious threats to American democracy, Consumer Watchdog argues. “These companies continue to spend whatever they think necessary to buy the laws and regulations they want,” said Consumer Watchdog project director John M. Simpson. “These disclosure statements don’t include payments to trade associations or the sort of ‘soft’ lobbying that has become a Google trademark -- funds to think tanks and academic research centers. When all that is factored in, the amounts are staggering.”
benton.org/node/181036 | telecompetitor
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STORIES FROM ABROAD

RUSSIA'S BLOGGERS TO FACE STIFLING RESTRICTIONS UNDER NEW LAW
[SOURCE: Huffington Post, AUTHOR: Charlotte Alfred]
Russia's parliament approved measures to tighten control over bloggers, drawing accusations that lawmakers are stifling a final bastion of free speech in the country. The Russian lower house passed a bill that requires all blogs with more than 3,000 daily visitors to register with Roskomnadzor, the state's agency for media oversight, semi-state-owned network RT reported. The new restrictions were approved as an amendment to an anti-terror bill and will obligate bloggers with a significant following to sign posts with their real name. Blogs will face restrictions similar to those applying to mass media outlets, including bans on extremism, pornography, electoral propaganda, and even "obscene language." The measures will take effect in August and will also apply to social network sites and personal websites. The bill effectively bans anonymous blogging on popular sites. In addition, bloggers will be held responsible for verifying the accuracy of all information posted on their sites, including comments posted by others, according to Reporters Without Borders. Blogging services and social networks will also be required to keep user data for six months, raising fears that authorities will use this information to track down Internet users.
benton.org/node/181063 | Huffington Post
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RUSSIA'S PUTIN CALLS THE INTERNET A 'CIA PROJECT'
[SOURCE: Associated Press, AUTHOR: ]
President Vladimir Putin has mocked the Internet as a CIA project and pledged to protect Russia's interests online. The Kremlin has been anxious to exert greater control over the Internet, which opposition activists -- barred from national television -- have used to promote their ideas and organize protests. Russia's parliament passed a law requiring social media websites to keep their servers in Russia and save all information about their users for at least half a year. Also, businessmen close to Putin now control Russia's leading social media network, VKontakte.
benton.org/node/181054 | Associated Press | The Hill
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WEB GIANT SINA CAUGHT IN CHINA'S 'LEWD AND PORNOGRAPHIC' CRACKDOWN
[SOURCE: Los Angeles Times, AUTHOR: Julie Makinen]
A Chinese government crackdown on “lewd and pornographic” content has ensnared Internet giant Sina.com, with authorities saying that inappropriate articles and videos were found on the portal and that the company would be stripped of its online publication and video licenses. The National Office Against Pornographic and Illegal Publications said tips from the public led to the discovery of 20 articles and four videos on the site that violated regulations. "Some of these articles were as long as 500-plus chapters and clocked millions of clicks ... imperiling social morals and seriously harming minors' physical and mental health," the statement said. Sina said it was “deeply saddened” by the developments and offered “sincere apologies.” “We are sorry and ashamed,” the note continued, adding that the company had established a rectification team to deal with the situation and invited users to continue to “monitor and criticize us.”
benton.org/node/181047 | Los Angeles Times
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TELECOM REFORM IN MEXICO
[SOURCE: Christian Science Monitor, AUTHOR: Maya Kroth]
Mexicans are protesting a telecommunications bill they say amounts to government censorship. Mexican President Enrique Peña Nieto proposed sweeping constitutional reforms in 2013, tackling topics from ending the state oil monopoly to increasing competition in the telecommunications sector. The initial telecom proposal was lauded for its aim to open the market to greater foreign investment, create new all-access TV stations, and implement stricter competition rules in order to offer consumers better prices and access to phone, Internet, and TV services. In March, President Peña Nieto sent a 500-page telecom bill to the Senate that fleshed out the so-called secondary legislation that determines how the reforms will actually play out, but some of the bill’s provisions are sparking concerns. Opponents say the proposed law would allow the government to block cell phone signals during protests, censor websites, and track cell phone communications in the interest of national security. It’s a sensitive topic, as Peña Nieto’s Institutional Revolutionary Party (PRI) controlled Mexico for 71 straight years until 2000, and some fear these provisions could signal a step back toward a more authoritarian style of government.
benton.org/node/181551 | Christian Science Monitor
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SAUDI ARABIA AND YOUTUBE
[SOURCE: Wall Street Journal, AUTHOR: Rory Jones, Ahmed Al Omran]
Saudi Arabia is planning tighter regulation of video content produced in the country for YouTube after an explosion of news, satire and comedy has made the kingdom one of the biggest per-capita global consumers of Google's video platform. Viewers in Saudi Arabia watch three times as much YouTube as their peers in the US, according to Google, largely because the traditionally government-backed mass media hasn't produced enough content suited to the country's large population of young people. An array of Arabic shows are produced in Saudi Arabia by online content creators that have, until now, been given a measure of freedom compared with the traditional media in the conservative Islamic kingdom. But YouTube's popularity has brought it under the scrutiny of Saudi authorities, who plan to regulate all forms of audiovisual media, a move that could stifle creativity among creators who have increasingly pushed the boundaries of satire in the Middle East. The General Commission for Audiovisual Media will monitor the quality and quantity of content produced in Saudi Arabia on platforms such as YouTube via a code that will include guidelines on alcohol, tobacco, nudity and sexual acts, said Riyadh Najm, the commission's president. It will also promote private-sector-led investment in the media industry.
benton.org/node/181550 | Wall Street Journal
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The Next Chapter in the #NetNeutrality Saga

[Commentary] On April 23, the Wall Street Journal broke news that the Federal Communications Commission would, the very next day, propose new network neutrality rules to ensure that Internet service providers treat all Internet traffic equally. The idea is that consumers should be able to access whatever content they choose, not the content chosen by the broadband provider. But the WSJ highlighted that the FCC’s proposal would allow broadband providers to charge companies a premium for access to their fastest lanes. So, obviously, all hell broke loose.

Net Neutrality, Incentive Auctions on FCC’s May Agenda

Federal Communications Commission Chairman Tom Wheeler announced that the following items will be on the tentative agenda for the next open meeting scheduled for Thursday, May 15, 2014:

  1. Incentive Auction: The Commission will consider a Report and Order that adopts key policies and rules for the broadcast television spectrum incentive auction, laying the groundwork for an unprecedented, market-driven process for repurposing spectrum for mobile broadband use, and promoting competition and innovation.
  2. Mobile Spectrum Holdings: The Commission will consider a Report and Order that modifies the Commission’s policies and adopts rules regarding the aggregation of spectrum for mobile wireless services through initial licensing and secondary market transactions to preserve and promote competition.
  3. Wireless Microphones: The Commission will consider a Report and Order that provides a limited expansion to the class of wireless microphone users eligible for a license.
  4. Protecting and Promoting the Open Internet: The Commission will consider a Notice of Proposed Rulemaking addressing the D.C. Circuit Court of Appeals’ remand of portions of the Commission’s 2010 Open Internet Order and proposing enforceable rules to protect and promote the open Internet.

FCC Establishes New Inbox for Open Internet Comments

The Federal Communications Commission will consider proposed rules to protect an Open Internet on May 15. The proposed rules will ask questions about how best to ensure the Internet remains an open platform for innovation and expression. FCC Chairman Tom Wheeler is encouraging the public to share their views now. He intends to have rules of the road in place before the end of the year to protect consumers and entrepreneurs. He will be listening, and your comments will help inform the final rules.

Verizon Wireless sells out customers with creepy new tactic

Verizon Wireless is "enhancing" its Relevant Mobile Advertising program, which it uses to collect data on customers' online habits so that marketers can pitch stuff at them with greater precision.

"In addition to the customer information that's currently part of the program, we will soon use an anonymous, unique identifier we create when you register on our websites," Verizon Wireless is telling customers. "This identifier may allow an advertiser to use information they have about your visits to websites from your desktop computer to deliver marketing messages to mobile devices on our network," it says. That means exactly what it looks like: Verizon will monitor not just your wireless activities but also what you do on your wired or Wi-Fi-connected laptop or desktop computer -- even if your computer doesn't have a Verizon connection. The company will then share that additional data with marketers.