December 2015

FCC: DOCSIS 3 Helps Drive Rapid Fixed Broadband Speed Boost

The Federal Communications Commission has released its fifth report on fixed broadband speeds and finds both a "significant" growth in advertised broadband speeds and, in most cases, Internet service provider (ISP) subscribers get close to or better than those advertised speeds.

The Measuring Broadband America report found that ISP speed offerings continue to get faster at a "rapid pace." The average maximum advertised speed across all participating ISPs was 72 Mbps as of September 2014, up a whopping 94 percent from 37.2 Mbps in September 2013. But while cable and fiber-based ISPs were usually meeting or beating that advertised price, DSL had not kept pace and some continued to advertise speeds that they did not deliver. The FCC said that was largely due to cable's deployment of DOCSIS 3 -- the maximum advertised speeds for cable ISP downloads increased from 12-20 Mbps in 2011 to 50-105 Mbps in September 2014.

Lawrence Lessig: How Technology Policy Will Evolve

A Q&A with Harvard Law School Professor Lawrence Lessig.

The latest chapter of Lawrence Lessig’s career ended in November, when the Harvard Law School professor concluded his bid for the Democratic Party’s presidential nomination. That effort centered on his campaign to reform Congressional politics. Prior to that, Professor Lessig’s scholarship, teaching and activism focused on technology policy and the Internet. He has argued for greater sharing of creative content, the easing of restrictions in areas such as copyright, and the concept of Net Neutrality. Lessig, who founded the Center for Internet and Society at Stanford Law School, is the author of numerous books on technology, including “Code: and Other Laws of Cyberspace,” and “The Future of Ideas: the Fate of the Commons in a Connected World.” CIO Journal asked Lessig for his thoughts on how technology policy, which is at multiple critical junctures around the world, can and should evolve. Privacy, surveillance, and international governance of the Internet and telecommunications networks will approach milestones in 2016, with implications for business and beyond.

When asked, "Do you think that the concept of Network Neutrality, which advanced during the Obama Administration, will survive coming challenges?" Lessig said, "The thing that people will resist … the slogan says regulation should be more technology neutral. I am not sure I ever heard a more idiotic statement in my life. There is no neutrality here, just different modes …I don’t think the law should say here is what services can do and not do, because the technology is so (fast-changing) the law could never catch up. But that (we want) to avoid are certain kinds of business models, a prison of bits, where services leverage control over access to content and profit from that control over content."

Industry efforts to fight digital piracy complement government action

[Commentary] Online piracy remains a perennial problem. Just days before Christmas, news broke that a digital piracy group had released pirated copies of "The Hateful Eight" and "The Revenant" before these movies had even made their theatrical debut. While clearly more needs to be done by law enforcement to crack down on the criminal syndicates behind these types of illegal activities, the past few years have shown that the private sector is taking important steps to combat online piracy and complement government efforts, especially though promotion of voluntary agreements between content creators and other players in the online economy.

The US Intellectual Property Enforcement Coordinator (IPEC) is in the process of developing a new three-year strategic plan to improve protection of intellectual property. IPEC's next strategic plan should recognize the value of voluntary agreements and aim to improve existing agreements, support ongoing talks in other areas, and encourage collaboration in areas where there has been less progress. Doing so will help the United States continue to be the powerhouse in creating digital content and innovative delivery models that have proven so popular with consumers and so successful for the US economy.

[Castro is the vice president of the Information Technology and Innovation Foundation (ITIF). Nigel Cory is a trade policy analyst at ITIF]

Twitter to crack down on terrorist threats, hate speech

Twitter has clarified its ban on threats and abuse amid calls for a tougher stance on extremists' use of the platform. The social media company announced that it will deactivate the accounts of users who engage in “hateful conduct” or whose "primary purpose is inciting harm towards others.” Twitter has regularly faced accusations that it doesn't do enough to combat harassment by and against its users. Even the company's most senior executives have acknowledged Twitter's failings in the area.

"We suck at dealing with abuse and trolls on the platform, and we've sucked at it for years," said then-CEO Dick Costolo in February. "It's no secret and the rest of the world talks about it every day." For the first time, the company's policy now says that users "may not promote violence against or directly attack or threaten other people on the basis of race, ethnicity, national origin, sexual orientation, gender, gender identity, religious affiliation, age, disability, or disease."

AOL Time Warner: Content and style

Sixteen years after its calamitous merger with America Online, Time Warner’s existential angst has barely lessened. In 2000, it held an enviable portfolio of assets: television networks, a movie studio, magazines, music. The core failure of AOL Time Warner was the absurd economics. It was billed as a “merger of equals”, but AOL shareholders gained 55 per cent of the combined company, effectively valuing AOL’s equity at $200 billion -- pretty juicy for a company whose revenue was $7 billion, less than Time Warner’s operating profit. AOL had 26 million subscribers who paid a monthly fee for Internet access. It was profitable (unlike most dotcom charlatans) but it soon became apparent that AOL was not in the same class as Time Warner.

Time Warner spun off the AOL business in 2008 and it was acquired by Verizon for $4 billion in 2015. While AOL had moved into branded content and programmatic advertising technology, its remaining 2m dial-up subscribers still generated the bulk of its profits. As for Time Warner, it has spent much of the past decade cleaning up its stable. It disposed of its pay TV distribution unit, Time Warner Cable, acquired by Charter Communications for $80 billion in total enterprise value. It also spun off Time, its magazine business. The remaining television and movie business held up quite well -- until recently.

Six Media Predictions For 2016

[Commentary] It seems almost inevitable that 2016 will be a year of accelerating trends in the media world more than one in which completely new ones emerge. So if there’s a unifying theme that will tie all of 2016’s major media dynamics together, it will be velocity. Given that, here are six trends likely to take on serious force in 2016 after gaining significant early traction in 2015, along with one more granular prediction that may serve as an important model to emulate.

  1. Over-the-top (OTT) domination -- Linear television is on notice: consumers have embraced over-the-top television options faster and more pervasively than almost anyone predicted.
  2. Political advertising goes digital -- Borrell Associates predicts that digital will capture $1 billion of a record $11.4 billion political ad spend in 2016.
  3. Virtual reality rises -- Late 2015 saw a flurry of VR experimentation among media outlets including The New York Times, Gannett Co., The Economist and ABC News.
  4. Ad blockers will rewrite the advertising playbook -- Ad blockers may not yet seem like the existential threat they were initially heralded to be. But don’t make the mistake of writing them off as overblown worries in the vein of Ebola or the Y2K bug.
  5. Distributed publishing will widen and accelerate -- Publishers have equivocated mightily on this phenomenon since it reared up a year ago. That equivocation may be a luxury they can ill afford in 2016 as the platform wars get more thermonuclear and major platforms like Facebook, Snapchat, Google and Apple expand their presence as publishers, compelling readers and viewers to follow.
  6. The Washington Post will keep beating The New York Times -- Times writers sniffed when the Post overtook the paper in unique visitors for the first time in October, then they scowled when it happened again in November, dismissively attributing the traffic surge to clickbait and other manipulative reader-grabbing ploys.

The year in net neutrality

[Commentary] Network neutrality was obviously the biggest tech policy issue of 2015 for those of us who work in the Internet and communication space. The first bombshell dropped on February 26th, when the Federal Communications Commission passed its third net neutrality order in a 3 – 2 party line vote. While net neutrality is an election issue, it’s clearly overshadowed by concerns about security and privacy on the Internet. Candidates are spending more time on encryption than on net neutrality, in part because it’s easier to understand and in part because it has a nexus with terrorist attacks. Democrats’ desire to make net neutrality a campaign issue is probably going to backfire on them because of the role encryption is playing in the debates. Secretary Clinton and celebrity Trump propose a “Manhattan Project” staffed by smart people in Silicon Valley to break the encryption used by terrorists, overlooking the fact that weakening encryption harms legitimate Internet users more than terrorists.

It’s entirely possible that the effects of the FCC’s rash action in Internet regulation in 2015 will be nullified by Congress before they’ve done much harm, but it’s not inevitable. As I wrote in my paper “Arrested Development: How Policy Failure Impairs Internet Progress,” net neutrality is bad for progress toward Internet convergence: "The Internet has reached an impasse because of inappropriate regulation. Restoring the Internet’s dynamic character will require innovation on the part of regulators that parallels the innovation produced by the Internet engineering community in the wake of the 1996 Telecommunications Act." Hence, the outcome will depend entirely on what kind of Internet policy the 2016 elections give us.

[Richard Bennett was vice-chair of the Institute of Electrical and Electronics Engineers Standards Association (IEEE-SA)]