May 2015

Carly Fiorina will run for president as a successful tech CEO. Silicon Valley says that's a fantasy

When Carly Fiorina launches her campaign for President, her message to the world will be emphatic: what she did for HP, she can do for America. “We went from a market laggard to market leader,” Fiorina has said of her six years running the computer giant. “Unlike Hillary, I have actually accomplished something.” But those who watched what Fiorina did to HP -- mishandling the $25 billion acquisition of Compaq, getting ousted by the board in 2005 with a $21 million golden parachute, repeatedly being named one of the worst CEOs in American corporate history -- say those supposed accomplishments are already coming back to “haunt” her run for the White House.

“She put herself ahead of the interests of the company and I fear she would do the same as president,” said Jason Burnett, a grandson of the late HP co-founder David Packard and a member of the Packard Foundation board of trustees. “I don’t want her to do harm to this country.” HP’s longtime director of corporate communications, Roy Verley, said his ex-boss alienated colleagues with a “cult of Carly” that put self-promotion first. “She didn’t know what she was doing and couldn’t deliver on her promises,” said Verley, who left HP in 2000. The notion of a successful Fiorina reign at HP, he said, was “fantasy”. Burnett, echoing criticisms from more Hewletts and Packards alike, warned the emergent class of political bankrollers in Silicon Valley -- already courted by Fiorina’s competitors like Sen Rand Paul (R-KY) and Jeb Bush and soon Clinton herself -- to “refresh their memory” before signing campaign checks. “She takes the Silicon Valley motto that it’s ‘OK to fail’ a tad too literally,” wrote the usually sober editorial board of the San Jose Mercury News, in calling for more women in politics -- except Carly Fiorina.

Joint Statement of FCC Chairman Tom Wheeler And Commissioner Ajit Pai Regarding Direct 911 Dialing

Whenever Americans dial 911, they expect and deserve to reach emergency personnel who can assist them in their time of need. And over the course of the past year, we have seen tremendous progress in ensuring that dialing 91 always works. Facilities across the country have been configuring their multi-line telephone systems so that consumers do not need to dial a "9" or any other access code before dialing 911. We are pleased to announced that the FCC is joining the ranks of those leading on this issue.

Beginning in June 2015, the phone system at the FCC's headquarters will be configured so that anyone in the building can reach emergency services by dialing "911". We hope that others in the federal government as well as state and local governments will follow this example. In an emergency, government employees and members of the public that visit government buildings should not have to think about whether an access code is required -- dialing 911 should always work.

FirstNet sets 'Industry Day,' starts taking one-on-one meetings with vendors

The First Responder Network Authority (FirstNet) made a couple of significant moves of late, setting May 14 as an "Industry Day" for interested parties to convene and beginning the process of accepting requests for one-on-one meetings with vendors starting May 15.

The Industry Day will provide opportunities for interested parties to ask questions and provide feedback to FirstNet. At the event, FirstNet officials will provide an overview of the Special Notice and draft Request for Proposal (RFP) documents that were approved for release by the FirstNet board and posted to the Federal Business Opportunities (FBO) website. "This is a key opportunity for members of the public safety community, the vendor community, and the public to engage in a dialogue with FirstNet about our proposed acquisition approach to deploy the nationwide public safety broadband network (NPSBN)," said FirstNet Acting Executive Director TJ Kennedy in a press release. "We encourage local, state, tribal, and federal agencies, market participants, and the public to participate in this event and in future opportunities to provide direct feedback to FirstNet on acquisition matters affecting the NPSBN."

FCC Chairman Wheeler's plan for fighting net neutrality lawsuits: 'not to lose'

Federal Communications Commission Chairman Tom Wheeler thinks his agency is on firm ground with its new network neutrality rules -- and that Comcast was right to drop its attempts at buying competitor Time Warner Cable.

Chairman Wheeler has already said that letting Comcast merge with Time Warner Cable would have posed an "unacceptable risk" to competition, and he made it even clearer that the companies wouldn't have had an easy time getting past regulators. "I think it was a pretty responsible decision by [Comcast CEO] Brian Roberts" to drop the plan, says Chairman Wheeler. "When he said 'it’s time to move on,' I think [that] perfectly encapsulates the reality. Why go and fight this through the courts?" He added that "it would be a long drawn-out process to challenge our decision," especially because the Federal Trade Commission had its own concerns about the deal. The Comcast debate might be over, but the FCC's fight to protect its net neutrality rules is still going. Chairman Wheeler calls his policies, which were approved earlier this year, "the most stringent and expansive open internet rules in history." (For reference, open Internet rules have been around for roughly 10 years.) It's also, based on the record 3.7 million public comments, the most heavily scrutinized decision in history. "That’s why this decision was so damn important," he says, whether those comments were for or against the net neutrality rules. "I think that the bulk of the comments indicated how when you’re talking about the Internet, you’re talking about something very personal to people. And they then used that personal medium of theirs to express themselves. That was what was significant." As for the merits of the case itself, Chairman Wheeler says that the FCC has solved the classification problem that sunk its last rules. "That issue’s gone. That was the big issue last time," he says. "So I feel pretty confident on the outcome of the court cases." Does Chairman Wheeler have a strategy if the rules don't stand up? "Not to lose. That’s the short-term plan."

House Judiciary Committee Chairman Goodlatte: Tweaking Antitrust Beats Title II

House Judiciary Committee Chairman Bob Goodlatte (R-VA) took aim at the Federal Communications Commission, offering up various legislative options for blocking the FCC's reclassification of broadband under Title II, including adjusting antitrust laws.

"You can protect the openness of the Internet a better way by having competition protected by antitrust laws," he said. Chairman Goodlatte was not definitive about any of those legislative options, saying "there could very well be." But in addition to pointing to bills already introduced under the Congressional Review Act -- in both the House and Senate -- to invalidate the FCC's Feb. 26 rulemaking, he talked about "limiting the agency through the power of the purse" by defunding implementation of the rules, and even added a new antitrust wrinkle. "I believe that our antitrust laws are good, but if they need to be tweaked, so that a small business, for example, can feel the [protection] of our antitrust laws, we should look at that." He did not even mention a fourth approach, the bill already proposed that would legislate no blocking, throttling and no paid prioritization rules, while precluding the use of Title II and limiting the use of Sec. 706 as broad authority to regulate broadband.

Zuckerberg blasts ‘extreme definition’ of net neutrality

Facebook chief executive Mark Zuckerberg argued against an “extreme definition” of network neutrality while announcing the expansion of a program to bring basic Internet service to people around the world.

“Some may argue for an extreme definition of net neutrality that says that it’s somehow wrong to offer any more services to support the unconnected, but a reasonable definition of net neutrality is more inclusive,” Zuckerberg said in a video announcing the expansion. “Access equals opportunity. Net neutrality should not prevent access.” Pointing out that around 4 billion people are not connected, he added, “It’s not an equal Internet if the majority of people can’t participate.” Facebook points out that websites participating in the program do not pay to be included. “Are we a community that values people and improving people’s lives above all else, or are we a community that puts the intellectual purity of technology above people’s needs?” Zuckerberg asked. Facebook said it has always planned to expand the program. Firms wishing to participate must create features to encourage the exploration of the broader Internet, must remove video and high-resolution photos and meet other specifications.

Facebook’s free Internet for the poor leaves out high-bandwidth sites

Facebook announced the Internet.org platform, "an open program for developers to easily create services that integrate with Internet.org."

Any developer will be able to build services that can be accessed through Internet.org, but there are limits on what they can offer. Although Facebook's announcement said the goal is to let users "explore the entire Internet," that will not include high-bandwidth services. "Websites that require high-bandwidth will not be included," Facebook wrote. "Services should not use VoIP, video, file transfer, high resolution photos, or high volume of photos." The version of Facebook available on the Internet.org app has the same limitation, as it removes photos and videos. Facebook cofounder and CEO Mark Zuckerberg explained the company's reasoning in an accompanying video. It isn't financially sustainable to offer free access to everything on the Internet, he said. "This program supports itself," he said. "When people use free basic services, more of them then decide to pay to access the broader Internet, and this enables operators to keep offering the basic services for free. It's not sustainable to offer the whole Internet for free, though. It costs tens of billions of dollars a year to run the Internet, and no operator could afford this if everything were free. But it is sustainable to build free basic services that are simpler, use less data, and work on all low-end phones." Developers who build services for the Internet.org platform must optimize them for browsing on both smartphones and basic phones, as well as for "limited bandwidth scenarios." "In addition, websites must be properly integrated with Internet.org to allow zero rating and therefore can’t require JavaScript or SSL/TLS/HTTPS," Facebook said.

Remarks of FCC’s Gigi Sohn at Moving Forward Toward A Gigabit State

Today, I want to talk to you about why the leadership at the Federal Communications Commission -- America's broadband agency -- is watching the CTgig Project closely and pulling for its success.

CTgig is a big deal because expanding broadband is about expanding opportunity. To seize the opportunities and fully realize the potential of broadband to improve the lives of the American people, broadband networks need to be fast, fair, and open. On those measures, we face significant challenges. That brings me to the main point I want to make today. No matter what the Commission does to spur broadband investment and deployment, there will be communities that are underserved, or even unserved, by the private market. Across America, communities have concluded that existing private sector broadband offerings are not meeting their needs and the only solution is to become directly involved in broadband deployment. Across the country, we see community after community stepping up to write their broadband future. But Connecticut has a unique opportunity to set the pace for the nation. Chairman Wheeler and I applaud your ambition and look forward to working with you to deliver the benefits of broadband to the American people.

Comcast ‘Comfortable in Our Own Footprint’

Comcast will concentrate on the accelerated rollout of X1, its next-gen video platform, and keep its video plans focused on the company's traditional footprint.

“We feel very comfortable in our own footprint,” Neil Smit, president and CEO of Comcast Cable, said on the company’s first quarter earnings call when asked about the operator’s interest and intent to offer an over-the-top video service. “We’ll be focusing there.” And much of that video focus will remain on X1, which accounted for nearly half of video connects in a first quarter in which Comcast lost about 8,000 basic video subscribers. Smit said X1 is seeing a 20 percent to 30 percent lower churn rate than subscribers on Comcast’s legacy video platform, and that VOD usage among X1 customers is 20 percent to 30 percent higher. “Right now, getting X1 rolled out is still the best opportunity at the company in the short run,” Brian Roberts, Comcast Corp.’s chairman and CEO, said.

The Internet of Everything: Boring, But So Important

[Commentary] When we are just getting used to Twitter and Facebook, Email and SPAM, along comes "The Internet of Everything" (IoE) where everything -- well almost everything -- is connected to everything else.

If we put some kind of sensor in a thing -- a tree, a car or a household appliance like a toilet -- wireless communication will allow us to connect it to the Internet for transmission, aggregation, or other use. Wireless Tags, for example, a company headquartered in Irvine, California advertises that their "sensor tags connect events in (the) physical world, e.g. motion, door/window opened/closed, temperature or humidity exceeding limits, to your smart phones, tablets and any Web browsers anywhere in the world with Internet access. " The payoffs are huge. According to Cisco Systems: "IoE could generate $4.6 trillion in value for the global public sector by 2022 through cost savings, productivity gains, new revenues and improved citizen experiences...Cities have the potential to claim almost two-thirds of the non-defense (civilian) IoE public sector value. Cities will capture much of this value by implementing killer apps in which "$100 billion can be saved in smart buildings alone by "reducing energy consumption." Business and government, cities and counties, indeed everyone with a stake in America's future, needs to begin thinking about the role of technology and cities, about the Internet of Everything and the promise it offers.

[John Eger is director of the Creative Economy Initiative at San Diego State University]