June 2014

5 no-bull facts you need to know about the 'no-Internet-fast-lane' bill

[Commentary] The Washington Post reported that a new bill is about to be put before Congress that would require the Federal Communications Commission (FCC) to prohibit Internet "fast lane" schemes, where ISPs charge extra for faster access to premium content.

The possible long-term effects of such proposals are sparking fierce debate. Most argue there is an obvious need for some kind of government regulation -- but what kind? And how likely is it that this particular bill -- dubbed the "Online Competition and Consumer Choice Act," and sponsored by Senate Judiciary Committee chair Patrick Leahy and Representative Doris Matsui -- can make a difference in the ongoing struggle between ISPs, customers, and government authorities over network neutrality?

Here's the five most crucial things you need to know about the bill right now.

  1. The bill doesn't actually give the FCC any new powers
  2. An outright ban on "pay-for-play" may be tough to draft, or enforce
  3. The FCC won't be taking the "nuclear option" (reclassifying Internet service providers as common carriers) anytime soon -- if ever
  4. Other bills are in the works that could gut the FCC's regulatory powers over broadband
  5. Don't expect the bill to get very far to begin with

Could Amazon Be the First Major Customer for AT&T’s “Toll-Free” Data Service?

AT&T has been pretty quiet about its plans for “toll-free” data service since announcing its plans at CES in January. With sponsored data, companies foot the bill for certain kinds of data use, meaning it is free for consumers.

AT&T said at the time that it was testing the service with a handful of partners, but has gone radio silent since then. That could change if, as some suspect, Amazon chooses to subsidize some of their customers’ data usage on the smartphone it is introducing.

Amazon could offer its sponsored data as part of its Amazon Prime service, which recently got a $20-per-year price hike in order to cover some of the rising costs with the service. Amazon added a Prime music service that offers subscribers unlimited streaming (though the service lacks most recent releases and has a smaller catalog than other music services).

T-Mobile’s CEO Pokes at Amazon Over AT&T Exclusive

T-Mobile’s provocative chief executive, John Legere, couldn’t resist taking a Twitter shot at corporate neighbor Amazon for reportedly striking an exclusive distribution deal with AT&T for its forthcoming smartphone.

Legere tweeted, in a seeming fit of pique, “Really, @Amazon? What happened to home-town pride?”

Both the un-carrier’s US operations and the retailer’s headquarters are in metropolitan Seattle. AT&T will reportedly be the exclusive carrier for Amazon’s much-anticipated smartphone, according to The Wall Street Journal.

The carrier declined comment, and Amazon won’t even confirm it is indeed launching a phone -- though it has scheduled a press event in Seattle where the smartphone is expected to be unveiled.

AT&T CEO Doesn’t See How Regulators Approve Sprint/T-Mobile Deal

AT&T chief executive Randall Stephenson said he doesn’t see how regulators can approve a rumored deal by SoftBank’s Sprint to buy T-Mobile USA.

“The problem as I see it is the way the government shut our deal down. They wrote a complaint and a very specific complaint. You’re consolidating the industry from four to three national competitors,” Stephenson said. “If you think of Sprint and T-Mobile combining, I struggle to understand how that’s not four going to three,” Stephenson said.

Apple Is Happy to Sell You the Hachette Books Amazon Won’t Stock

Amazon doesn’t want to sell books from Hachette Book Group. More for us, says Apple, which is taking advantage of the fight between the world’s biggest bookstore and one of the world’s biggest publishers.

Its iTunes store is promoting a sale on digital versions of popular Hachette titles, including upcoming books from James Patterson and JK Rowling. Apple won’t come out and say that, exactly.

But if you head to the iTunes book page, you’ll see Apple is highlighting a “Popular Pre-Orders: $9.99 or Less” section. Meanwhile, Amazon won’t allow customers to preorder digital versions of any of those titles, and generally isn’t selling paper-and-ink versions, either.

Beyond the fact that Apple’s happy to take advantage of a (much bigger) rival’s fight, what’s particularly interesting about the promotion is that one of the chief disputes between Hachette and Amazon is over pricing of digital books -- Amazon wants to push prices down; Hachette does not.

Facebook Releases Slingshot for Self-Destructing Selfies

When Facebook ended negotiations to buy Snapchat in 2013, that did not mean the company stopped thinking about the disappearing photo messages that have made Snapchat so popular for casual conversations, especially among younger users.

Now Facebook, the world’s largest social network, is rolling out Slingshot, its own service for sending self-destructing selfies to friends.

The new app, which will be available in the Apple and Android mobile app stores in the United States and later in other countries, aims to create a sense of community by encouraging users to send a photo or video to a group of friends. Its unique twist is that the recipients are required to share a visual moment of their own before they can see what was sent to them.

The Wireless Innovation Act: Rational spectrum policy

[Commentary] Senator Marco Rubio has made a strong move for spectrum policy leadership, announcing a plan to introduce three bills that substantially reform America’s spectrum policy.

The Wireless Innovation Act (WIA) directs the National Telecommunications and Information Administration (NTIA), the previously toothless agency that coordinates the use of spectrum by federal agencies, to compile recommendations for the transfer of 200 MHz from the government to the people.

The WIA is not the kind of sweeping reform of the government spectrum status quo that we’re going to need eventually, but it’s a strong step in the right direction that tests the resolve of two key constituencies: Senate Democrats and NTIA. Perhaps the best thing about the WIA is the absolute deadlines it applies to government spectrum users: Three years from the delivery of the NTIA report, they’ll lose their authorization to use the 200 MHz of spectrum (even if they lose the memo.)

This is exactly the kind of sensible, rational, and technologically efficient approach to spectrum that’s long overdue.

[Bennett is a visiting fellow at AEI and was vice-chair of the Institute of Electrical and Electronics Engineers (IEEE) task group]

A new approach in luring top tech talent: a streamlined hiring process

Free snacks and on-site video games may help companies attract skilled IT workers, but speeding up the hiring cycle is also important. Drawn-out employee searches frustrate IT managers and prompt good candidates to accept jobs elsewhere.

Increased corporate IT investment and the technology industry's low unemployment rate have created a candidate-driven market, so companies need to streamline the recruitment process if they want to get their hands on the best IT pros available.

"The unemployment for technical jobs in most of our markets is a lower rate than the general unemployment rate," said Victor Gaines, vice president of talent acquisition at Fiserv, which provides financial services technology to banks, retailers and investment firms, among other clients. "Folks who have technical skill sets are finding jobs at a faster rate and they're staying at those jobs [longer] than perhaps some other skill sets."

Jack Cullen, president of IT staffing firm Modis, offered a blunt assessment of the US IT hiring process: "Managers that are hiring IT talent, they're pickier than ever and they're hurting themselves." Talented workers may have multiple job offers, he added, so slow and overly selective employers will lose their top choices. IT job website Dice.com placed the US technology industry's unemployment rate at 2.7 percent in 2014's first quarter, compared to an overall US unemployment rate of 6.7 percent.

Commission Announces Inmate Calling Services Data Due Date

On September 26, 2013, the Federal Communications Commission (Commission) released the Inmate Calling Services Report and Order and Further Notice of Proposed Rulemaking.

As part of that order, the Commission adopted a mandatory data collection requirement “to enable [it] to take further action to reform rates.”

The Commission announces that notice of the requisite Paperwork Reduction Act approval from the Office of Management and Budget and information collection effective date have been published in the Federal Register. This allows the Commission to collect from all ICS providers data related to the costs of providing ICS. The required data are due July 17, 2014. The Commission requires ICS provider data to be filed electronically.

Democrats unveil legislation forcing the FCC to ban Internet fast lanes

Democratic lawmakers will unveil a piece of bicameral legislation that would force the Federal Communications Commission to ban fast lanes on the Internet.

The proposal, put forward by Senate Judiciary Committee chair Patrick Leahy (D-VT) and Rep Doris Matsui (D-CA), requires the FCC to use whatever authority it sees fit to make sure that Internet providers don't speed up certain types of content (like Netflix videos) at the expense of others (like e-mail). It wouldn't give the commission new powers, but the bill -- known as the Online Competition and Consumer Choice Act -- would give the FCC crucial political cover to prohibit what consumer advocates say would harm startup companies and Internet services by requiring them to pay extra fees to ISPs.

"Americans are speaking loud and clear," said Sen Leahy, who is holding a hearing on net neutrality in Vermont this summer. "They want an Internet that is a platform for free expression and innovation, where the best ideas and services can reach consumers based on merit rather than based on a financial relationship with a broadband provider."

Sen Leahy and Rep Matsui's proposed ban on fast lanes would apply only to the connections between consumers and their ISPs -- the part of the Internet governed by the FCC's proposed net neutrality rules. The FCC's current proposal tacitly allows for the creation of a tiered Internet for content companies, though the commission has asked the public whether it should ban the practice as "commercially unreasonable."

"A free and open Internet is essential for consumers," said Rep Matsui. "Our country cannot afford ‘pay-for-play’ schemes that divide our Internet into tiers based on who has the deepest pockets."