June 2015

The First Net Neutrality Complaint Under The 2015 Rules Is Likely To Lose, And That’s A Good Thing.

[Commentary] A company called Commercial Network Services (CNS) has filed the first network neutrality complaint under the Federal Communications Commission’s new rules -- which went into effect June 12 after the DC Circuit denied a stay request. While I probably should not prejudge things, I expect the FCC to deny the complaint for the excellent reason that -- accepting all the facts alleged as true -- Time Warner Cable did absolutely nothing wrong. I elaborate on what CNS gets wrong, why this differs from other high-profile disputes like Cogent and Level 3, and why such an illustration is good for the FCC’s rules as a whole in this piece.

CNS doesn’t allege that TWC suddenly changed their policy or that a facially neutral policy discriminates against a particular application. They basically say, “Hey! I want free peering because that would be good for TWC’s subscribers.” We had that argument in the mid/late 1990’s when differentiation in the network moved us from free peering for everyone that could plausibly lay claim to being a “backbone” provider to formal peering policies that created the modern peering and transit market.

NBA OTT to Allow Individual Game and Team Streaming

Add the National Basketball Association to the growing list of content providers who are shaking up the traditional pay-TV model. The NBA announced that their upcoming 2015-16 NBA League Pass service will offer both single games and a season’s worth of any individual team’s games options for both linear TV and over-the-top (OTT) video distribution. Think of it as a la carte for NBA basketball. NBA League Pass had been available through both linear and digital options before, but subscribers had to buy all the available games for a single price. It was the NBA’s equivalent of the popular NFL Sunday Ticket package. This updated version ‘unbundles’ the service and allows subscribers to purchase individual games or follow one team for the whole season. And watch it on the device of their choice.

In-flight Wi-Fi is about to become a thing people actually use

Soon in-flight Wi-Fi will be reshaped by some of the same trends affecting Internet connectivity on the ground. People are shifting away from traditional, fixed broadband connections and toward wireless connections that allow them to surf the Web outside the home and office on their mobile devices. Cisco predicts that by 2019, Americans will consume 10 times more mobile data than they did in 2014. Those forecasts will undoubtedly affect how the industry provides in-flight Wi-Fi. Upgraded communications satellites will soon allow not just faster airborne Internet, but also fancy video services such as live sports, music streaming and even in-flight mobile advertising, providing what will be a "near-home type experience."

New satellite technology promises speeds of 50 megabits per second, up from the 500 kilobits per second on older satellites. The big question is whether all of these new features will also come with lower prices for consumers, or if carriers like Gogo will charge premium rates for such access. The problem is reminiscent of what's happening on the ground. It's expensive to set up all the hardware needed to provide Internet. But what will likely keep pushing the in-flight Wi-Fi industry forward is the knowledge that consumers' expectations are constantly rising. They want the same experience that they get in their home, an experience that's enabled by ground-based Internet providers and content services.

Jeb Bush: I would fire OPM director over hack attack

Former Florida Gov. Jeb Bush called for the ouster of the federal government's personnel chief for failing to heed a watchdog's warnings of potential cybersecurity vulnerabilities. The recently disclosed breach of the Office of Personnel Management’s security-clearance computer system took place a year ago and is now believed to have affected the personal data of more than 18 million current, former and potential federal workers. Those disclosures have come as Bush has launched a new focus in recent days on cybersecurity and the ongoing dangers faced by the public and private sector.

On June 23, Bush strongly criticized the Obama Administration's lax management of the situation. "It's outrageous," he said, recounting recent reports that Chinese hackers had access to the personal data for more than a year, and that federal officials now believe the number of people affected is much greater than initially acknowledged. "You have a political hack -- you have the national political director of the Obama reelection campaign as the head of this," Bush said. "And just as has been the case across the board when we have this sheer incompetence or scandalous behavior, there's no accountability. No one seems to be fired. If I was President of the United States, that person would be fired. They did not follow up on inspector general's recommendations to tighten up security to create a stronger firewall," he added. "The net result is that the Chinese, apparently the Chinese have had access to this information for over a year and it's a dangerous threat to our national security."

Presidential Hopefuls Sell Swag, Collect Data

“A campaign store is a very significant piece of a modern political campaign,” said Dale Emmons, president of the American Association of Political Consultants. Buy an item from a campaign store, and you are not actually purchasing a product; you are making a donation.

According to Federal Election Commission regulations, candidates are not allowed to sell items for personal profit, so the product is the “premium” you get in return for your pledge. As a result, when you put, say, a T-shirt or a coffee cup in your cart and go to checkout, you will, besides being asked for your full name, shipping address, phone and e-mail, be met with the statement, “federal law requires us to collect the following information”: employer, occupation and whether you are retired. So far, so like any other online donation. But when retail is involved, a little something extra is, too: personal preferences at a level beyond candidate. The choice of a product can reveal whether you are a beer drinker, a sports fan or what cellphone you use. It can suggest that there are a lot of joggers headquartered in a specific region of the country, indicating that a campaign may want to direct its health communications to that state; or that you really, really, hate the other guy. It can reveal that you have a baby, or at least are close to someone who has a baby. While the money is nice, the information is invaluable. “It’s all about learning who your supporter base is,” said Marshal Cohen, chief industry analyst of the NPD Group. “How do they live? What are their trigger points? What words resonate with them? It’s worth its weight in gold, in the political arena just like the consumer arena. We call it demographic profiling, because voter profiling sounds like a dirty word, but that’s what it is.”

Daniel Villanueva, a Creator of Univision, Dies at 77

Daniel D. Villanueva, a former professional football player who as a founder of the Univision network built a Spanish-language broadcasting empire spanning the United States, died on June 18 in Ventura (CA). He was 77.

One of the first Hispanic-Americans in the National Football League, Villanueva was a kicker for the Los Angeles Rams from 1960 to 1964, and for the Dallas Cowboys from 1965 to 1967. He was also a television sportscaster and an executive of the Spanish International Communications Corporation, a forerunner of Univision. Based in New York, Univision is today the leading Spanish-language television network in the United States, serving nearly 30 million viewers in 57 markets.

More help is needed to stop robocalls, including ones from EBay and PayPal

[Commentary] If you're being driven crazy by robocalls, help may be on the way. Sen Claire McCaskill (D-MO) has introduced legislation to strengthen the Federal Communication Commission's ability to crack down on what's become a high-tech pain in the tuchis. "These calls can be annoying or frustrating to many of us, but they can be much more devastating to those, especially seniors, who fall victim to them," Sen McCaskill said. Her bill would give the FCC more enforcement authority, allowing it to slap harsher penalties on robocallers. It also would extend the agency's reach in cracking down on so-called spoofers -- robocallers that hide their identity from caller ID systems or appear as a call you'd want to take, such as from your local police department or a nearby hospital.

For its part, the FCC is trying to get phone companies more involved. It announced that telecom firms "face no legal barriers" in adopting technologies aimed at filtering robocalls. The need for help from on high was underlined by EBay and PayPal, both of which recently announced that they were modifying their terms of service to allow "auto-dialed or prerecorded calls or text messages" to contact users. That's exactly what it sounds like. EBay and PayPal, which are now in the process of splitting apart, are reserving the right to robocall you. They say they might do this to collect debts, offer promotions or ask survey questions. It seems clear that robocalls can't be cut off at the source. The best bet for consumers is to intercept them before they reach people's homes, just as the most effective way of addressing e-mail spam is for Internet service providers to block unwanted messages before they reach subscribers. Lawmakers and regulators are in agreement: More needs to be done to stop robocalls. They're doing what they can. It's now up to phone companies to do their share in protecting customers.

Verizon’s Mobile Video Optimized for Its Network

Verizon’s coming “mobile-first” subscription video service will be network-agnostic, but will “work best” on those operated by the carrier, said Marni Walden, executive vice president and president of product innovation and new business at Verizon. Walden shed some light on that over-the-top (OTT) offering, noting it will feature on-demand and some live TV when it launches later in Summer 2015. It will run on any network, including those run by competitors, but “will work best on Verizon networks,” she said.

Walden also confirmed that “ad-sponsored data” will be part of Verizon’s new offering, and that the carrier believes it is “well within the ability to do that” in the wake of the Federal Communications Commission’s new network neutrality rules. In addition to ad-supported products, Verizon will also offer “some premium offers as we evolve the product,” she said, noting that there are no current plans to provide the service outside the US.

Cyberthreats Have Broadcasters Hacked Off

[Commentary] While politically motivated hacks such as the ones that may have disrupted France’sTV5Monde and WBOC Salisbury (MD), are scary, they aren't likely to be typical. Stations and networks are more likely to be hit by garden variety malware and malicious code intrusions because where there is Internet protocol (IP), there is vulnerability. An area of particular security concern to broadcasters is the nation’s Emergency Alert System, which is increasingly dependent on networked and IP-based services.

What then can most broadcasters do to beef up protection and improve survivability? “The first step is cyber hygiene,” says Kelly Williams, senior director of engineering for the National Association of Broadcasters, echoing the consensus of most cybersecurity experts across all sectors. Broadcasters should know where their vulnerabilities are and take the appropriate basic steps to make it more difficult for intruders to gain access, he says. “Where is your firewall? Is everything you have protected? Did you change all the default passwords on every piece of equipment you own? “I can’t stress enough the concept of understanding what your risk is. You get 50 percent of the way there if you sit down and have a conversation with your staff and you look at where all the vulnerabilities are.”

[Cynthia Brumfield is a veteran communications and technology analyst who is currently focused on cybersecurity]

Endless Bummer? TV Ratings Slump Continues

On the heels of a May that saw a double-digit decline in broadcast ratings, the summer season is getting off to a similarly draggy start. According to Nielsen C3 ratings for the final month of the 2014-15 season, deliveries of adults 18-49 fell 11 percent in broadcast prime, while cable demos were off 7 percent. This in turn appears to have had a chilling effect on the early summer ratings, as just about every returning network series has lost ground when compared to the year-ago period.

Through June 18, returning tent poles are down 20 percent in live-same-day demo ratings. Even the current highest-rated summer show, NBC's "America's Got Talent," has slipped when compared to a year ago; through the first four episodes, the competition series is down 14 percent to a 2.4 in the demo. A slate of new series isn't doing much to stop the bleeding, either. The 11 freshman shows that have premiered since mid-May are averaging a 1.1 in the demo, and the five scripted newcomers together are delivering a 0.9 rating.