December 22, 2010 (News from FCC, Congress)

BENTON'S COMMUNICATIONS-RELATED HEADLINES for DECEMBER 22, 2010

2010: A Momentous Year for Broadband in America http://bit.ly/e8xrjQ


NETWORK NEUTRALITY
   FCC Adopts First Regulations to Preserve Internet Freedom and Openness
   Reaction to FCC's Network Neutrality Action
   Why the FCC's network neutrality proposal is the right one for right now
   A Network Neutrality Timeline: How We Got Here
   Industry needs to tell own side of Network Neutrality story
Today's editorials
   Net neutrality rules don't go far enough, but going farther wasn't politically possible
   Keeping the Net neutral
   The Net Neutrality Coup
   Government Gobbles the Web

EMERGENCY COMMUNICATIONS
   FCC looks to Modernize 9-1-1

NEWS FROM THE HILL
   Congress passes bill to fund government through March 4
   See also:Senate postpones spending fight
   Comprehensive Science Legislation to Become Law

INTERNET/BROADBAND
   The Broadband Plan and the Power of Data Driven Thinking
   Broadband: Four Legislative Steps To Ensure Economic Growth
   US Internet Users Ready to Limit Online Tracking for Ads
   Google Should Pay for Internet Network as Web Content Expands, France Says
   NECA releases Trends 2010
   The Looming Cable Monopoly
   Bed or Bits? Nearly Half of All Americans Would Ditch Sleeping Quarters Before Their PC, TV
   Ofcom accuses BT on pricing

OWNERSHIP
   Intel Wins Approval for McAfee Acquisition From FTC
   The Looming Cable Monopoly
   The End Of Hulu As We Know It (And Comcast Feels Fine)
   Disney Denied Appeal of $319M 'Millionaire' Verdict

TELEVISION
   Making Up with Non-Political Advertisers
   The Looming Cable Monopoly
   How many cities have access TV? More than you might think
   TV on the go ready to hit the small screen
   Bed or Bits? Nearly Half of All Americans Would Ditch Sleeping Quarters Before Their PC, TV
   Disney Denied Appeal of $319M 'Millionaire' Verdict

CONTENT
   The End Of Hulu As We Know It (And Comcast Feels Fine)
   Forget getting Netflix or Hulu Plus on TiVo-made cable DVRs
   Google’s Big Problem: It Ain't What You Think
   US Internet Users Ready to Limit Online Tracking for Ads

TELECOM
   NECA releases Trends 2010
   Ofcom accuses BT on pricing

WIRELESS
   Google: carriers should give Android users freedom to unlock bootloader
   Verizon iPhone won't be AT&T's doomsday
   A Demography of the iPad

HEALTH
   US, Europe will cooperate on EHR exchange standards

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NETWORK NEUTRALITY

FCC NETWORK NEUTRALITY ORDER
[SOURCE: Federal Communications Commission, AUTHOR: ]
The Federal Communications Commission today acted to preserve the Internet as an open network enabling consumer choice, freedom of expression, user control, competition and the freedom to innovate. The rules ensure that Internet openness will continue, providing greater certainty to consumers, innovators, investors, and broadband providers, including the flexibility providers need to effectively manage their networks. These rules were developed following a public rulemaking process that began in fall 2009 and included input from more than 100,000 individuals and organizations and several public workshops.
The rules require all broadband providers to publicly disclose network management practices, restrict broadband providers from blocking Internet content and applications, and bar fixed broadband providers from engaging in unreasonable discrimination in transmitting lawful network traffic. The rules ensure much-needed transparency and continued Internet openness, while making clear that broadband providers can effectively manage their networks and respond to market demands The Order builds on the bipartisan Internet Policy Statement the Commission adopted in 2005. It concludes that adopting open Internet protections to ensure the continued vitality of the Internet is needed in light of instances of broadband providers interfering with the Internet’s openness and natural incentives they face to exert gatekeeper control over Internet content, applications, and services. [much more at the URL below and see links to all the coverage]
benton.org/node/46947 | Federal Communications Commission | Washington Post | AP | The Hill | LATimes | ars technica | B&C | National Journal | Connected Planet | paidContent.org | New York Times | WSJ| WashPost | Financial Times | USAToday | Christian Science Monitor | ars technica
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IN RESPONSE TO FCC
[SOURCE: Benton Foundation, AUTHOR: ]
Here's a collection of statements in response to the Federal Communications Commission's adoption of open Internet/network neutrality rules on Dec 21.
benton.org/node/46945 | Benton Foundation | Commissioner Copps | Commissioner McDowell | Commissioner Clyburn | Commissioner Baker | President Obama | House Commerce Committee Chairman Henry Waxman | The Hill | Multichannel News | Public Knowledge | Verizon | Chairman Rockefeller | Sen Hutchison | Benton Foundation | The Hill | B&C - House GOP | B&C - Divided Hill | ars technica
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INDUSTRY'S SIDE OF NET NEUTRALITY
[SOURCE: Connected Planet, AUTHOR: Susana Schwartz]
[Commentary] Is the lack of understanding of network neutrality issues by mainstream users the fault of telco opponents on this issue, or carriers and industry vendors themselves? DPI, policy and charging vendors have to pitch in to help stave off those attacks. And, carriers should pay attention to what their customers fear and then educate them so they don't lose customer loyalty. Before launching successful marketing and education campaigns to address these fears and misconceptions, carriers and their suppliers need to take the first step and read what the public is saying. The danger is that without an effort by the telecom industry to tell its own story about Net Neutrality, the history of this issue will be written by others ­ namely Web and over-the-top players that ultimately have their own corporate interests to represent.
benton.org/node/46951 | Connected Planet
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EMERGENCY COMMUNICATIONS

MODERNIZING 9-1-1
[SOURCE: Federal Communications Commission, AUTHOR: ]
The Federal Communications Commission took an important step to modernize America's 9-1-1 services for consumers and first responders by adopting a Notice of Inquiry (NOI) seeking public comment on how Next Generation 911 (NG911) can enable the public to obtain emergency assistance by means of advanced communications technologies beyond traditional voice-centric devices.
The FCC has undertaken this proceeding in response to a recommendation in the National Broadband Plan seeking to harness the life-saving potential of text messaging, email, video and photos from mobile and landline broadband services. Despite the fact that there are more than 270 million wireless consumers nationwide and that approximately 70 percent of all 9-1-1 calls are made from mobile hand-held devices, today's 9-1-1 systems support voice-centric communications only and are not designed to transfer and receive text messaging, videos or photos. In some emergency situations -- especially in circumstances where a call could further jeopardize someone's life and safety -- texting may be the only way to reach out for help. In addition, many Americans, particularly those with disabilities, rely on text messaging as their primary means of communication.
The NOI asked a comprehensive set of questions that address a number of issues related to the deployment of Next Generation 9-1-1 services, including, but not limited to:
The technical feasibility and limitations of text messaging video streaming and photos;
Consumer privacy issues, particularly related to the sharing of personal electronic medical data;
Development of technical and policy standards;
Consumer education and awareness; and
Inter-governmental coordination and coordination within the public safety community.
benton.org/node/46953 | Federal Communications Commission | Fact sheet
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NEWS FROM THE HILL

GOVERNMENT FUNDING BILL PASSED
[SOURCE: Washington Post, AUTHOR: Felicia Sonmez]
Facing a midnight deadline to avoid a government shutdown, Congress passed a bill Tuesday that will fund the federal government through March 4. The bill, which will also freeze federal salaries for two years, narrowly passed the House, 193 to 165, several hours after it easily cleared the Senate in a 79 to 16 vote. President Obama was standing by at the White House to sign the measure. The last-minute scramble was required after the Senate last week withdrew a $1.2 trillion omnibus appropriations bill that included more than $8 billion in earmarks. Republicans successfully forced Senate Majority Leader Harry Reid (D-NV) to pull the measure from the floor and instead take up the stopgap measure, which would increase federal spending by $1.16 billion, an increase of less than 1 percent.
benton.org/node/46998 | Washington Post | The Hill
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COMPETES ACT PASSED
[SOURCE: Science, AUTHOR: Jeffrey Mervis]
The House of Representatives accepted a stripped-down Senate version of the America COMPETES Act, a bill to strengthen research, education, and innovation at several federal agencies. Now the bill will go to President Barack Obama for his signature. But looming fights over the discretionary budget may make the legislative success a Pyrrhic victory. The sharply partisan nature of the debate on the House floor -- only 16 of 146 Republicans supported its passage, along with all 212 Democrats who voted -- signaled that the new Republican House leadership won't take kindly to bills that promise large increases in federal spending, no matter how worthy the cause. That attitude bodes ill for the likely impact of COMPETES, which puts Congress on record in support of steady increases in the budgets of the National Science Foundation (NSF), the basic science programs at the Department of Energy (DOE), and the National Institute of Standards and Technology. The bill also creates new programs aimed at enhancing science and math education, advanced manufacturing research, and regional innovation and mandates better coordination of them by the White House. And it tweaks the rules governing existing activities, from the fledgling Advanced Research Projects Agency-Energy at DOE to long-running training programs at NSF, with the goal of getting a bigger economic payoff from federal investments. COMPETES doesn't actually provide any money for any agency. That can has been kicked down the road into the next Congress because legislators couldn't agree on the 2011 budget in their current lame-duck session. But that didn't stop Republicans from railing against the increased "spending" authorized in the bill, which would allow up to $46 billion for those agencies over the next 3 years. And that's after the House accepted Senate changes that sliced the last 2 years off a 5-year authorization and dropped several new programs. Republicans also complained that the bill, which the full House passed in a different form in May and which was vetted by a Senate panel in July, was being crammed down their throats.
benton.org/node/46978 | Science | House Science Committee | Office of Science and Technology Policy
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INTERNET/BROADBAND

DATA DRIVEN THINKING
[SOURCE: GigaOm, AUTHOR: Blair Levin]
[Commentary] The fourth and final column in a debate about the role of competition, broadband speeds and the goals of the National Broadband Plan between Blair Levin, the plan’s author and Craig Settles, a broadband consultant. The National Broadband Plan team was trying to solve many problems (as directed by Congress) but the first problem, as explicitly stated by Congress, was ensuring “that all people of the United States have access to broadband capability.” To do that, one has to define what level of broadband capability government should be willing to subsidize, how much it will cost and how the government will pay for it. So it’s difficult for me to take seriously any criticism of the plan that doesn't provide concrete answers to those questions. Settles doesn't provide those answers, though in his latest discourse, he appears to be more willing to accept the 4 Mbps speed target for the subsidy for residential, as long as the plan allows for that goal to be reconsidered, which it does. If I'm reading Settles right, then perhaps on that issue, we don't disagree, though if so, it undercuts his earlier attacks on the plan. If I'm reading him wrong, then once he answers those three questions we can have a far more productive dialogue.
benton.org/node/46971 | GigaOm
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FOUR LEGISLATIVE STEPS FOR BROADBAND
[SOURCE: Progressive States Network, AUTHOR: Fabiola Carrion]
State legislators can take the four following revenue-neutral and widely supported steps to lead in broadband policy: 1) Create a Broadband Task Force, 2) Map High-Speed Internet Infrastructure, 3) Create and expand programs to bridge the digital divide, and 4) Launch Digital Literacy Programs. If enacted, policies like these will encourage true access to, as well as adoption and utilization of broadband - sparking job growth and securing infrastructure needed to grow the American economy. Legislative oversight over broadband does not undermine competition, it encourages it by creating mechanisms that assess the need for broadband access and takes the steps to stimulate broadband adoption by making it affordable and usable. Modernizing communications policy does not mean deregulating it, but ensuring that no one is left in the digital dark. In short, state government must propel action that will result in more investment and broadband for all. [more at the URL below]
benton.org/node/46966 | Progressive States Network
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INTERNET ADVERTISING POLL
[SOURCE: Gallup, AUTHOR: Lymari Morales]
US Internet users would likely welcome a "Do Not Track" measure like the one the Federal Trade Commission is currently considering to keep advertisers from tracking their movements online. Gallup finds Internet users largely aware that advertisers use their online browsing history to target ads to their interests, but largely opposed to such tactics -- even if they help to keep websites free. In the Gallup survey, 50% of Americans reported using the Internet for more than an hour per day, including 68% of 18- to 34-year-olds, 55% of 35- to 54-year-olds, and 69% of those making at least $75,000 per year. These highly sought-after Internet users are slightly more likely than the oldest and least affluent users to say tracking tactics should be allowed, though they are still largely opposed. Internet users send a mixed message about how much these ads are influencing them. On the one hand, more than 6 in 10 say they have noticed that some ads are targeted specifically to them based on websites they have previously visited. On the other, 9 in 10 say they pay little or no attention to online ads. These assessments vary little by age and income.
benton.org/node/46993 | Gallup | MediaPost
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CONTENT

THE END OF HULU AS WE KNOW IT
[SOURCE: paidContent.org, AUTHOR: Andrew Wallenstein]
The initial public offering for Hulu is off the table. The fact that Hulu lacks long-term rights to its programming was “one reason” offered for the IPO postponement. That smells like a red herring given this wasn't exactly a surprise to NBC Universal, News Corp. and Disney, primary stakeholders alongside Providence Equity Partners. A likelier rationale: IPOs require consensus, and that’s not going to happen with this many cooks in the kitchen. There’s no shortage of issues the principals could be disagreeing on here, but let’s focus on the biggest question mark that has hovered over Hulu for about a year now: Comcast, which is about to take over NBCU’s stake, needs Hulu like a fish needs a bicycle. A site that has built its fan base by offering TV episodes for free online is not of much use to a cable operator that wants to monetize that same window through VOD and TV Everywhere or Fancast or Xfinity or whatever cockamamie new name Comcast concocts next -- all of which lack the brand power Hulu has built. And so Comcast can't simply pull the plug on Hulu. If it keeps its stake in the company, the best move is to steer it further in the direction of Hulu Plus, which has a subscription model and multiplatform presence that fits in with the cable operator’s drive toward authenticated viewing experiences.
benton.org/node/46955 | paidContent.org
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NO HULU FOR YOU
[SOURCE: ars technica, AUTHOR: Chris Foresman]
TiVo's Premiere-series DVRs offer access to Netflix's Watch Instantly streaming service, and the company has announced that Hulu Plus support is coming soon. But if you get your TiVo Premiere from your cable company, you won't be able to access either service. Rightsholders are using licensing terms to prevent these services from directly competing with paid video-on-demand from your cable provider. Both Netflix and Hulu have confirmed that the contracts in place with content providers specifically forbid offering subscription service to DVRs that are leased to customers through cable companies. Such subscription services would compete directly with TV providers' VOD services which charge as much as $3 per TV episode and $10 for a movie. This kind of access blocking isn't new, either. Movie studios have gotten Netflix to agree to a 28-day window for access to new releases in exchange for better access to back-catalog content for its streaming service. The 28-day window is intended to help prop up dwindling DVD sales as customers continue to transition to on-demand streaming video services. It seems content providers are happy to license content to Netflix or Hulu as long as they can keep it from supplanting existing revenue sources and can find ways to try to charge multiple times for the same content.
benton.org/node/46972 | Ars Technica
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GOOGLE'S BIG PROBLEM
[SOURCE: GigaOm, AUTHOR: Om Malik]
[Commentary] As it looks at its future, Google needs to realize that it has a “user experience” problem and its simplicity — the elegant search box — isn't enough, especially as it starts to compete with rivals whose entire existence revolves around easy, consumer experiences. Here are three major challenges Google needs to surmount:
Make software usable by tens of millions of people on a disparate array of products.
Overcome its history of only using data to define its future.
Figure out how to keep people in their playground, rather than helping people find the information they were looking for and sending them elsewhere: a radical new approach to business.
Google, during its first ten years, thrived by helping people go elsewhere on the web. The faster it sent them elsewhere, the sooner those users would return. However, these new platforms Google is trying to build are inherently personal. Unlike the PC-based web browser which tries to help you find things, these new platforms are about bringing information to you. They are about discovery, not search. Google is like an old dog trying to learn new tricks. The good news is that Google isn't that old, and more importantly, the company knows it has a problem and is trying to find ways to fix it.
benton.org/node/46962 | GigaOm
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TELECOM

TRENDS 2010
[SOURCE: National Exchange Carrier Association, AUTHOR: ]
This report outlines the state of technology of NECA’s 1,100 traffic sensitive (TS) pool members. These telcos serve some of the smallest customer bases spread over vast geographical areas covering 39 percent of total U.S. land mass, requiring more resources per customer than their larger counterparts. Nonetheless, they provide a variety of broadband-based solutions to help keep local businesses, educational institutions and rural economies vibrant. Adoption and deployment rates among pool members track closely with national averages. While traditional broadband delivery methods continue to grow among pool members - DSL lines increased by 10 percent over 2009 - they are also deploying other technologies, including:
Ethernet - between 2007 and 2010, the percentage of pool members offering Ethernet transmission services rose from 18 percent to 36 percent. Ethernet is a low-cost packet technology that can be used to transport voice, data and video services.
IP enabled switches (softswitches) - the number of members who reported deploying softswitches rose by ten percent, from 402 to 445. Softswitches provide integrated voice and broadband services to customers over a common network.
benton.org/node/46970 | National Exchange Carrier Association
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