April 2014

FCC to Propose New 'Net Neutrality' Rules

The Federal Communications Commission plans to propose new open Internet rules that would allow content companies to pay Internet service providers for special access to consumers, according to a person familiar with the proposal.

The proposed rules would prevent the service providers from blocking or discriminating against specific websites, but would allow broadband providers to give some traffic preferential treatment, so long as such arrangements are available on "commercially reasonable" terms for all interested content companies. Whether the terms are commercially reasonable would be decided by the FCC on a case-by-case basis.

Companies such as Skype or Netflix that offer phone or video services that rely on broadband connections could take advantage of such arrangements by paying the broadband providers to ensure that their traffic reaches consumers without disruption. Those companies would be paying for preferential treatment on the "last mile" of broadband networks that connects directly to consumers' homes.

The proposal does not address the separate issue of back-end interconnection or peering between content providers and broadband networks.

FCC Chairman Tom Wheeler indicated he planned to issue new open Internet rules in February after a federal court threw out the FCC's previous rules. The court's ruling sketched out a legal pathway through which the FCC could try and achieve the same goals, and Chairman Wheeler has said he plans on following that road map.

Additional Coverage:

FCC, in a Shift, Backs Fast Lanes for Web Traffic (NYTimes)
http://www.nytimes.com/2014/04/24/technology/fcc-new-net-neutrality-rule...

FCC shifts stance on net neutrality rules (FT)
http://www.ft.com/cms/s/0/568be7f6-cb2f-11e3-ba95-00144feabdc0.html

Net neutrality dead for good? FCC may endorse pay-for-play deals (ars technica)
http://arstechnica.com/tech-policy/2014/04/net-neutrality-dead-for-good-...

Google to Netflix Pay-for-Access Deals Said to Be Review by FCC (Bloomberg)
http://www.businessweek.com/news/2014-04-23/fcc-said-to-consider-letting...

FCC proposes allowing streamers to strike ISP deals (USA Today)
http://www.usatoday.com/story/tech/personal/2014/04/23/fcc-net-neutralit...

FCC chairman proposes new net neutrality rules (LA Times)
http://www.latimes.com/business/la-fi-fcc-net-neutrality-20140424,0,5845...

The FCC is planning new net neutrality rules. And they could enshrine pay-for-play. (Washington Post)
http://www.washingtonpost.com/blogs/the-switch/wp/2014/04/23/the-fcc-is-...

Christopher Mims Named New WSJ Tech Columnist

We are delighted to announce that Christopher Mims is the new technology columnist for The Wall Street Journal and WSJD.com, the Journal’s online and mobile home for tech coverage.

Mims, 34 years old, is coming to the Journal from Quartz, where he has served as lead technology reporter and, most recently, technology and science editor. As a writer, he has consistently provided provocative and insightful stories, columns and blog posts about an array of technology and science topics, from Facebook’s plan to find its next billion users to the history of the pumpkin spice latte at Starbucks.

As a freelance journalist before joining Quartz, Mims was a prolific writer for publications ranging from Technology Review and Smithsonian.com to Wired, the Atlantic, Scientific American, Discover, Slate and Glamour. He has a degree in neuroscience and behavioral biology from Emory University. In his new role, Mims will produce a weekly column for print and online readers, as well as blog posts and videos for digital platforms.

Study: Samsung’s Apps Are Ubiquitous but Unloved

As Samsung Electronics's best-selling smartphones face increasing competition from a horde of Chinese lookalikes, one of the South Korean giant’s key goals has been to translate demand for its devices into interest for Samsung’s homegrown software and services. But a new study shows how far the company still has to go.

Strategy Analytics, a Newton (MA)-based research firm, said in a report that US users of Samsung’s devices spend little time on its own messaging, music and voice-activated applications including apps like ChatON, the South Korean company’s answer to services like WhatsApp, Line and Viber.

The report said that US users of Samsung’s Galaxy S3 and S4 smartphones logged an average of six seconds per month using ChatON, compared to more than 11 hours per month on Facebook and about two hours per month on Instagram. On average, users spent just seven minutes during the month on an array of Samsung apps -- including ChatON, voice-activated search app S Voice and app store Samsung Hub. By contrast, they spent an average of 149 minutes on just three apps by software partner Google -- its app store Play Store, video-watching site YouTube and its flagship search engine.

Media bias explained in two studies

[Commentary] The University of Chicago’s Matthew Gentzkow and Jesse Shapiro have some interesting ideas about the modern media, which they culled by studying traditional media. Namely, newspapers.

They examined the ideological “slant” of newspapers by identifying various words and phrases favored by liberals or conservatives. By tallying newspapers’ use of liberal and conservative phrases, Gentzkow and Shapiro determined papers’ political slant. This compromised their “objective” pursuit of the news.

But why are some papers more liberal and others more conservative? This is how the media resemble ice cream, Gentzkow said. Just as ice cream makers give customers the flavors they want, newspapers give their readers the stories and slant they want. It’s a market phenomenon. Ice cream makers strive to maximize ice cream consumption and profits. Papers try to maximize readership and profits.

Newspapers are commercial enterprises that respond to economic signals and incentives. Editors, producers and reporters sense what appeals to their readers and try to satisfy these tastes. Applied to cable news channels and the Internet, these same forces polarize politics.

Cable and the Internet have splintered media audiences and, thereby, created ferocious fights for ever-larger shares of ever-smaller fragments of the old mass market. The logic is powerful that the commercial imperatives of the new technologies will deepen the country’s political divisions. People will stick to their familiar political flavors and disparage those who choose differently.

How China and Russia are trying to undermine the Internet, again

The last time the world got together to talk about how the Internet should work, China and Russia proposed making it easier for individual governments to control what their citizens can see on the Web.

Now they're at it again, this time at a major international conference in Brazil. The conference, known as NETMundial, is expected to produce a set of nonbinding, international principles that countries can use in their management of the Internet.

The issue has grown more prominent lately as the United States signaled its intent to relinquish its largely symbolic role in overseeing the Web's global name and numbering system. Unlike many of the other 180-odd proposals submitted by other countries and organizations, China and Russia are plainly preoccupied by how Internet governance could affect state authority.

The Aereo case is being decided by people who call iCloud ‘the iCloud.’ Yes, really.

[Commentary] In the end, the Supreme Court's ideal frame of reference was the phonograph. The fact that their first instinct was to turn to an invention created 137 years ago speaks gigabytes for how well the Justices approach the day's most important technology cases.

It's easy to poke fun at the bench. Justice Sonia Sotomayor kept referring to cloud services alternately as "the Dropbox," "the iDrop," and "the iCloud." Chief Justice John Roberts apparently struggled to understand that Aereo keeps separate, individual copies of TV shows that its customers record themselves, not one master copy that all of its subscribers have access to.

Justice Stephen Breyer said he was concerned about a cloud company storing "vast amounts of music" online that then gets streamed to a million people at a time -- seemingly unaware of the existence of services like Spotify or Google Play. And Justice Antonin Scalia momentarily forgot that HBO doesn't travel over the airwaves like broadcast TV.

Yes, it's fun to mock Justices who seem clueless about technology. But the truth is that the laws themselves are often far behind technology. When a justice asks about a phonograph, it's because he is trying to go back to the most basic examples that support the current legal framework. And if a Justice truly doesn't understand the basics of some technology, you wouldn't want them not to ask these questions out of fear of ridicule.

AT&T now getting more growth from mobile than Apple

The handheld vision Steve Jobs sold to AT&T in 2007 has come to pass. The problem for Apple investors is that the booming market the company created with the iPhone in 2007 -- and then boosted with the iPad three years later -- is now producing more growth for AT&T than it is for Apple itself.

AT&T reported its strongest growth in long-term wireless subscribers in five years, "with smartphones and tablets leading the way," as AT&T Chief Financial Officer John Stephens said. Just as important, a surging number of AT&T customers are switching to so-called usage-based pricing -- paying based on how much wireless data they download from the Web -- rather than paying for the devices up front with the help of subsidies.

While the transition is putting a short-term hit on AT&T's balance sheet (as it has to write down the full price of such device sales immediately), the popularity of those plans also helped generate the company's strongest cash flow from operations in seven years.

"The move away from device subsidies accelerated in Q1," Stephens said, as the number of new and existing customers choosing so-called mobile share data plans tripled from a year earlier

FCC’s Wheeler: AT&T bluffing on boycott threat

Federal Communications Commission Chairman Tom Wheeler said he doesn’t believe AT&T will sit out of the agency's highly anticipated airwaves auction in 2015.

He pointed to AT&T's past insistence that it needs more airwaves for its growing mobile business.

“I have a hard time envisioning this once-in-a-lifetime opportunity for this kind of beach-front spectrum being something that people throw up their hands and walk away from,” he said.

“Nobody is compelling anybody to participate in the spectrum auction,” he said. “Whether the broadcasters sell or the wireless carriers buy is entirely a function of their own free will and a marketplace that we create."

FCC Proposes to Make 150 MHz of Spectrum Available for Broadband

The Federal Communications Commission took steps to provide more spectrum for general consumer use, carrier-grade small cell deployments, fixed wireless broadband services, and other innovative uses, through the creation of a new Citizens Broadband Radio Service.

The FCC proposed rules for the Citizens Broadband Radio Service in a Further Notice of Proposed Rulemaking that advances the Commission’s efforts to meet the growing demand for spectrum by proposing to make 150 megahertz available in the 3.5 GHz Band. The FNPRM proposes innovative spectrum sharing techniques to unlock the value of the spectrum between 3550 MHz and 3650 MHz, and seeks comment on extending the proposed service to 3700 MHz.

Specifically, the FNPRM proposes a three-tiered access and sharing model comprised of federal and non-federal incumbents, priority access licensees, and general authorized access users. Together, the proposals seek to promote flexibility and innovation by leveraging advancements in technology to facilitate sharing between different users and uses, including incumbent government uses.

Federal and non-federal incumbents would be protected from harmful interference from Citizens Broadband Radio Service users. Targeted priority access licenses would be made available for a variety of uses, including mobile broadband.

General authorized access use would be permitted in a reserved amount of spectrum and on an opportunistic basis for a variety of consumer or business-oriented purposes, including advanced home wireless networking. Access and operation within the 3.5 GHz band would be managed by a spectrum access system, a dynamic database or databases that incorporates technical and functional requirements necessary to manage access and operations across the three tiers. In addition, the FNPRM seeks comment on technical, auction, and allocation rules.

New COPPA FAQs can help schools make the grade

Educators, administrators, and parents have been asking an important question: How do the protections of the Children’s Online Privacy Protection Act (COPPA) and the accompanying Federal Trade Commission rule apply in the school setting?

FTC staff has responded by updating Complying with COPPA: Frequently Asked Questions to address some of the issues that arise when COPPA goes to school.

The new FAQs cover key compliance topics and offer guidance on best practices.