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  2. July 2015

July 2015

Why journalists should care more about media business models

[Commentary] Too few journalists care about media business models. Every week a senior journalist or editor tells me: it’s not my job to care, I trust our commercial teams, I just want to get on and do my words. The business of media, it seems, is none of their business. Editorial culture’s aversion to commercial affairs results from fallacious thinking about Chinese walls: Since editorial content must be protected from advertisers’ influence, journalists must protect themselves from anything commercial. Sometimes it also results from misplaced snobbery: commercial activities may enable my good work, but they are also, somehow, dirty.

This isn’t a new problem, but as more business models emerge, and the number of revenue streams at any one business expands, it has become more important than ever for journalists to care about, understand and influence commercial strategy. Yet there’s been little culture change across the industry. If you’re a journalist and you want to understand and readily navigate changes in your role or organisation’s objectives, you should look to understand the broader business challenges the organisation is navigating. If you’re a journalist and you’re looking to progress your career, not only will understanding media business issues allow you to dodge bullets and find better opportunities, but you’ll also become a much more attractive candidate for your knowledge and interest.

Kenya to require users of Wi-Fi to register with government

The head of Kenya's Communications Authority, Francis Wangusi, announced a new set of regulations aimed at combatting cybercrime in the country. The new rules would require all users of devices with wireless networking capability to register their devices with the Kenya Network Information Centre (KENIC) -- much in the same way that some US states require registration of assault rifles and sex offenders.

On June 30, in a speech before the annual general meeting of the Association of Regulators of Information and Communications for Eastern and Southern Africa (ARICEA), Wangusi said, “We will license KENIC to register device owners using their national identity cards and telephone numbers. The identity of a device will be known when it connects to Wi-Fi." He also said that the Communications Authority would set up a forensics laboratory within three months to "proactively monitor impending cybersecurity attacks, detect reactive cybercrime, and link up with the judiciary in the fight," according to a report.

July 1, 2015 (Court Revives Defunct NSA Mass Surveillance Program)

BENTON'S COMMUNICATIONS-RELATED HEADLINES for WEDNESDAY, JULY 1, 2015

What do we cover in Headlines? See https://www.benton.org/topics


PRIVACY/SURVEILLANCE
   Court Revives Defunct NSA Mass Surveillance Program
   Warrantless phone tapping, e-mail spying inching to Supreme Court review [links to web]
   Washington Post starts to automatically encrypt part of Web site for visitors [links to web]

INTERNET/BROADBAND
   Remarks of FCC’s Gigi Sohn at Fiber on Fire Conference - speech
   Jim Beam (yes, the whiskey maker) says we need broadband competition [links to web]
   Court sets schedule for net neutrality case
   Did the Supreme Court just drive a stick into the spokes of the FCC’s Virtuous Cycle? - AEI op-ed [links to web]
   Sprint Hangs Up on Throttling Policy

CONTENT
   Apple Loses Federal Appeal in E-Books Case
   Facebook Is Experimenting With How You Read The News [links to web]

TELEVISION
   TV Binging On The Rise [links to web]

OWNERSHIP
   DirecTV: AT&T Merger Completed 'Shortly'
   DOJ Seeks More Data From Arris-Pace Deal [links to web]

EMERGENCY COMMUNICATIONS
   Remarks of FCC Commissioner Ajit Pai at the Nebraska Public Service Commission's Public Workshop on Accessing 911 Service From Multi-Line Telephone System - speech
   False Alert: Can You Really Trust that Tweet for Emergency Communications? - analysis [links to web]

ELECTIONS & MEDIA
   The Christie Collapse and a Media Dream Dashed - HuffPo op-ed [links to web]

JOURNALISM
   Sir Martin Sorrell: traditional media too 'stuffy' for young digital readers [links to web]

HEALTH
   Communicating With Your Doctor On Facebook May Be The Future Of Healthcare [links to web]

POLICYMAKERS
   Vermont Public Service Board Commissioner Hofmann Appointed to Federal-State Joint Board on Jurisdictional Separations - public notice [links to web]

STORIES FROM ABROAD
   Mexico gives competitors access to Telmex phone networks
   Australian government bans hundreds of mobile and Web-based games [links to web]
   Facebook wins latest case in class action privacy battle in Vienna [links to web]
   How the Philippines plans to improve 'pathetic' Internet speed [links to web]
   US, Brazil to restart long dormant Internet working group [links to web]

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PRIVACY/SURVEILLANCE

COURT REVIVES MASS SURVEILLANCE
[SOURCE: National Journal, AUTHOR: Dustin Volz]
The Foreign Intelligence Surveillance Court has revived the National Security Agency's bulk collection of Americans' phone records, a program that lapsed when sections of the Patriot Act briefly expired. The court approved a government request to renew the dragnet collection of US phone metadata for an additional five months -- a timeframe allowed under the Freedom Act, a newly enacted surveillance reform law that calls for an eventual end to the mass spying program exposed by Edward Snowden two years ago. The Senate passed the Freedom Act days after allowing the June 1 expiration of the Patriot Act's three spying provisions, including Section 215, which the NSA uses to justify its bulk collection. The court order renews the surveillance until November 29, 2015 -- six months after enactment of the reform law. "This application presents the question whether the recently-enacted USA Freedom Act ... ended the bulk collection of telephone metadata," the order reads. "The short answer is yes. But in doing so, Congress deliberately carved out a 180-day period following the date of enactment in which such collection was specifically authorized. For this reason, the Court approves the application in this case."
benton.org/headlines/court-revives-defunct-nsa-mass-surveillance-program | National Journal
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INTERNET/BROADBAND

SOHN AT FIBER ON FIRE
[SOURCE: Federal Communications Commission, AUTHOR: Gigi Sohn]
When I learned the theme of this conference, “Fiber on Fire,” I thought it was fitting that I would be here. That’s because when it comes to fiber deployment, the Federal Communications Commission is fired up to ensure that Americans have a fast and vibrant Internet ecosystem. We view ourselves as the public’s representative in the Internet revolution. In fact, Congress said it’s our job to maximize the benefits of communications networks for the American people. We take that role very seriously. To that end, we are working to help lift barriers to broadband deployment. We know you are facing some significant barriers. Right now there is no easy way to figure out what infrastructure currently exists, and even when you do know what infrastructure could be used to ease deployment, you’re faced with bureaucratic delays…. I’m sure most of you learned that the FCC is not afraid to take action to promote broadband deployment when we addressed some state restrictions on community broadband. The cities of Chattanooga, Tennessee and Wilson, North Carolina wanted to expand their fiber broadband services to areas that were receiving substandard service or no service at all from existing providers. However, these expansions were prevented by state laws. Understandably, the cities didn’t like that much. And I can tell you that the people that were dealing with the substandard service didn’t like it either. So the Electric Power Board, or EPB, of Chattanooga and the City of Wilson filed petitions with the FCC asking us to preempt their state laws. Ultimately the FCC found that parts of these laws are barriers to broadband deployment under Section 706 of the Telecommunications Act of 1996, and, therefore, we could pre-empt them. Now the FCC respects the important role of state governments in our federal system and we don’t take preemption of state laws lightly. But when state laws directly conflict with Federal laws and policy, we are not afraid to take action. We have a legal mandate to promote broadband deployment and we used that authority to ensure these communities could reach consumers that need fast, fair, and open Internet at a reasonable price.
benton.org/headlines/remarks-fccs-gigi-sohn-fiber-fire-conference | Federal Communications Commission
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COURT SETS SCHEDULE FOR NET NEUTRALITY CASE
[SOURCE: The Hill, AUTHOR: David McCabe]
The US Court of Appeals for the District of Columbia has set a schedule for the legal case over the Federal Communications Commission's controversial network neutrality rules. The telecommunication companies, trade groups and individuals suing the FCC must submit briefs to the US Court of Appeals for the District of Columbia by July 30. Their supporters have until August 6 to submit their own filings. The FCC will then have until September 16 to respond, with its supporters chiming in by September 21. Another round of briefs from the petitioners in the case will come on October 5 -- and all final briefs will be due by October 13. Oral arguments will follow. Observers expect the court to decide the case by early 2016.
benton.org/headlines/court-sets-schedule-net-neutrality-case | Hill, The
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SPRINT ENDS THROTTLING POLICY
[SOURCE: Wall Street Journal, AUTHOR: Ryan Knutson]
Sprint said it would end a policy of slowing video speeds for unlimited-data customers, after an outcry over the practice undermined the carrier’s attempt to promote a new phone plan. The company said it has engaged in practice known as throttling for two years, but only recently began disclosing it more prominently after the US implemented new network neutrality rules that took effect June 12. When the carrier unveiled a new $80-a-month plan offering unlimited talk, text, data and a smartphone, some customers complained about a footnoted caveat that video speeds would be delivered at lower speeds. When the company said it was ending the throttling, Chief Executive Marcelo Claure said “We heard you loud and clear.”
benton.org/headlines/sprint-hangs-throttling-policy | Wall Street Journal
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OWNERSHIP

DIRECTV: AT&T MERGER COMPLETED 'SHORTLY'
[SOURCE: Multichannel News, AUTHOR: Mike Farrell]
DirecTV and AT&T have agreed to a brief extension of the termination date of their merger, adding in a filing with the Securities and Exchange Commission that it expects the $48.5 billion deal to be consummated shortly. In a brief statement filed June 30, the satellite company said the parties had agreed to an unspecified extension to the deal. The merger was expected to receive approval on June 30, but sources have said that it could bleed into early July. The deal, which will create a satellite TV and wireline communications powerhouse with more than 26 million video customers, was not expected to receive much pushback from the Federal Communications Commission.
benton.org/headlines/directv-att-merger-completed-shortly | Multichannel News
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EMERGENCY COMMUNICATIONS

REMARKS OF FCC COMMISSIONER AJIT PAI ON ACCESSING 911 SERVICE FROM MULTI-LINE TELEPHONE SYSTEM
[SOURCE: Federal Communications Commission, AUTHOR: FCC Commissioner Ajit Pai]
It bears observing that our nation's 911 system has been a tremendous success story. But our system isn't perfect. In particular, when your life or the life of a loved one is on the line, you shouldn't have to think about whether you need to dial a "9", "8", "7," or some other access code to get an outside line....I launched an inquiry to determine the scope of the problem and to encourage hotels, motels, and other buildings that use multi-line telephone systems (MLTS) to ensure that direct 911 calling works. The responses showed that virtually every MLTS system in use today can be configured or re-configured to allow direct 911 dialing. They revealed that modifying existing systems costs little to no money. And they made clear that many telephone systems can be configured to permit both 911 and 9-911 calling. The biggest obstacle to solving the problem was a lack of awareness -- something you are helping combat today.
benton.org/headlines/remarks-fcc-commissioner-ajit-pai-nebraska-public-service-commissions-public-workshop | Federal Communications Commission
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CONTENT

APPLE LOSES APPEAL
[SOURCE: Wall Street Journal, AUTHOR: Joe Palazzolo]
A federal appeals court upheld a 2013 decision finding Apple liable for conspiring with publishers to raise the price of e-books. The 2-1 ruling by the Second US Circuit Court of Appeals in Manhattan follows three years of litigation, millions of dollars in legal fees and a bold decision by Apple to challenge the US Department of Justice to a trial, even after all the publishers with which it was accused of colluding had settled their cases. The iPhone maker is expected to pay $450 million, most of it to e-book consumers, as part of a November agreement with private plaintiffs and 33 states that joined the Justice Department’s 2012 lawsuit accusing Apple of violating civil antitrust law. The deal hinged on the outcome of the appeal. The penalty amounts to less than 3% of company’s profit in the quarter that ended in December. Assistant Attorney General Bill Baer of the Justice Department’s Antitrust Division said, “We are gratified by the court’s decision. The decision confirms that it is unlawful for a company to knowingly participate in a price-fixing conspiracy, whatever its specific role in the conspiracy or reason for joining it. Because Apple and the defendant publishers sought to eliminate price competition in the sale of e-books, consumers were forced to pay higher prices for many e-book titles. I am proud of the outstanding work done by the trial team who initially established Apple’s liability and by the lawyers who defended the district court’s decision in this appeal. The Antitrust Division will continue to vigorously protect competition and enforce the antitrust laws in this important business, and in other industries that affect the everyday lives of consumers.”
benton.org/headlines/apple-loses-federal-appeal-e-books-case | Wall Street Journal | Dept of Justice | USA Today
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STORIES FROM ABROAD

MEXICO GIVES COMPETITORS ACCESS TO TELMEX PHONE NETWORKS
[SOURCE: Reuters, AUTHOR: Tomas Sarmiento, Cyntia Barrera]
Mexico's telecommunications regulator said that it will open access to the "last mile" of Telmex telephone network to rivals, in a decision that aims to increase competition in a sector dominated by billionaire Carlos Slim. The move will force Telmex, owned by Slim's America Movil , to let other companies use part of its vast fixed line infrastructure. The "last mile" connects competitors using Telmex's fixed line infrastructure with their end-user customers. The company has 60 days to present terms by which it will offer services to other operators, the Federal Telecommunications Institute (IFT) said. Since declaring America Movil dominant in the sector in 2014, the IFT has been introducing stricter measures designed to boost access to a sector seen as less competitive than Mexico's peers. America Movil operates around 70 percent of Mexico's mobile and fixed lines.
   1-Mexico gives competitors access to Telmex phone networks

benton.org/headlines/1-mexico-gives-competitors-access-telmex-phone-networks | Reuters
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Sprint Hangs Up on Throttling Policy

Sprint said it would end a policy of slowing video speeds for unlimited-data customers, after an outcry over the practice undermined the carrier’s attempt to promote a new phone plan.

The company said it has engaged in practice known as throttling for two years, but only recently began disclosing it more prominently after the US implemented new network neutrality rules that took effect June 12. When the carrier unveiled a new $80-a-month plan offering unlimited talk, text, data and a smartphone, some customers complained about a footnoted caveat that video speeds would be delivered at lower speeds. When the company said it was ending the throttling, Chief Executive Marcelo Claure said “We heard you loud and clear.”

Facebook wins latest case in class action privacy battle

Facebook has won its latest case in a long-running legal battle with an Austrian law student who attempted to sue the social network on privacy grounds.

A court in Vienna said it had no jurisdiction to rule on the class action suit from Max Schrems, who argued Facebook had breached European Union rules on data protection. The ruling is a small victory for the company, which is facing a glut of legal challenges across Europe over the way it handles its users’ personal data. Facebook said of the Vienna case: “This litigation was unnecessary and we’re pleased that the court has roundly rejected these claims.” Schrems, who was acting on behalf of 25,000 other claimants, said he would appeal against the decision.

How the Philippines plans to improve 'pathetic' Internet speed

The Philippines needs to take speedy action on a very slow problem, says a Filipino senator, echoing the complaints of millions of users. “The current situation in the country is, sad to say, unacceptable. The state of Internet speed is pathetic, and unless we remedy this situation, our IT sector is likely to suffer in the long term,” said Sen. Francis “Chiz” Escudero. Despite an insatiable appetite for social media, access to the web – at any speed – has long been difficult to obtain in much of the Philippines. Only 37 percent of Filipinos had Internet connectivity in 2013, according to a recent United Nations report. Among the 190 countries evaluated, the Philippines ranked 110th.

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