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April 13, 2011
Source: 
Bloomberg
Coverage Type: 
Lauren Frayer

AT&T’s proposed $39 billion acquisition of Deutsche Telekom’s T-Mobile USA raises questions about whether the deal would lead to consumer price increases, the Federal Communications Commission’s top economist said.

Chief FCC economist Jonathan Baker said that the agency should determine whether the deal would leave wireless customers without viable alternatives. These concerns should be weighed against the possibility of technological breakthroughs and whether cost savings would be passed on to consumers. “It’s just a signal that the FCC is going to be examining these issues very carefully,” said Robert Lande, a University of Baltimore law professor who attended Baker’s speech and confirmed its content. He said Baker’s concerns are the basis of “a tough standard for approving a merger.”

AT&T’s Purchase of T-Mobile Questioned on Prices by FCC Official

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April 13, 2011
Source: 
BroadbandBreakfast.com
Author: 
Jonathan Charnitski
Coverage Type: 
Lauren Frayer

Panelists at the Free Press National Conference for Media Reform railed on the Federal Communications Commission over the weekend, debating to what extent the Commission has been “captured” by industry and how to fix it.

Joel Kelsey, Political Advisor at Free Press, moderated the panel. The event included participants from the public interest, industry and government sectors. Kelsey started the discussion by posing the question of the difference between capture by the industry and corruption. He also highlighted issues such as a perceived “revolving door” between employment at the FCC and private industry and the comparative discrepancy between the lobbying representation from the public and that of the telecommunications industry. “We’re really at an important inflection point,” said Kelsey. “We find the vision we all share and the policies we’re all fighting for are crashing into a political juggernaut in DC.” Gigi Sohn, president and co-founder of industry watchdog, Public Knowledge, called attention to the entrenched relationship between a government regulator and the industry it oversees as problematic. Repeatedly during the hour-long panel, she pointed a finger at current FCC Chairman, Julius Genachowski, as having failed to provide competent leadership at the agency.

Free Press Panel Blasts ‘Broken’ FCC

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April 13, 2011
Source: 
Hill, The
Author: 
Sara Jerome
Coverage Type: 
Lauren Frayer

Representatives of NBC and CBS television affiliates headed to the Federal Communications Commission (FCC) to question whether it's even possible to quantify the damages they could incur during repacking, a central aspect of FCC Chairman Julius Genachowski's spectrum proposals.

Though Genachowski says participation will be voluntary, some broadcasters who opt not to take part in the auctions will nevertheless have to change which airwaves they use so that contiguous swaths of spectrum are available for mobile broadband. The FCC has promised to repay the broadcasters for the costs they incur. But broadcasters are saying that might be "impossible." A representative for the NBC and CBS affiliates met with Chairman Genachowski's top aides to raise concern that the harms associated with repacking won't be fully addressed, according to an ex parte filing. He argued that the damages "would be serious, widespread, and difficult or even impossible to quantify in terms of compensable damages."

CBS, NBC affiliates say fair compensation for spectrum harms might be 'impossible'

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April 13, 2011
Source: 
Reuters
Author: 
Jennifer Saba
Coverage Type: 
Lauren Frayer

US Internet advertising revenue jumped 15 percent to $26 billion in 2010, setting a record high and proving that more companies are opening up their coffers to reach people online.

The new figures released by the Interactive Advertising Bureau and PwC also reported record online ad revenue increases in the fourth quarter of 2010, up 19 percent to $7.5 billion. "We now have had five consecutive quarters of growth since the great recession impacted interactive advertising in 2009," said Sherrill Mane, senior vice president, industry services at the IAB. The report found that the most popular form of advertising was search, which represented 46 percent of revenue and increased 12 percent from 2009. Digital video advertising accounted for 5 percent of total ad dollars spent online in 2010, or $1.4 billion. Display advertising, which also includes video, jumped 24 percent to almost $10 billion last year. The fastest growing form of advertising in 2010 was sponsorships, which soared 88 percent to $718 million.

Internet ad revenue hits high in '10

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April 13, 2011
Source: 
National Journal
Author: 
David Hatch
Coverage Type: 
Lauren Frayer

The congressional push to enact major online privacy legislation intensified April 13 when Rep Cliff Stearns (R-FL) followed through on his pledge to introduce a comprehensive measure that he began crafting in the last congressional session.

The "Consumer Privacy Protection Act" seeks to strike a balance between consumer and corporate interests by requiring websites to better inform visitors about how their personal information is used while relying on self-regulation by companies for compliance. The Consumer Privacy Protection Act, requires covered entities to provide consumers in clear and easy to understand language what information is being collected and how the information is being used. It also provides incentives for covered entities to enter into strong self-regulatory standards.

The Consumer Privacy Protection Act of 2011 specifically would:

  • Require covered entities to notify consumers that their personally identifiable information as defined in the bill may be used for a purpose unrelated to the transaction.
  • Require entities to notify consumers of any material change in their privacy policy.
  • Require covered entities to establish a privacy policy with respect to the collection, sale, disclosure for consideration, or use of the consumer's information and such policy be made easily available for consumers.
  • Require an entity to provide consumers the opportunity to preclude the sale or disclosure of their information to any organization that is not an information-sharing partner.
  • Provide for a Federal Trade Commission (FTC) approved five-year self-regulatory program and prescribes requirements for a self-regulatory consumer dispute resolution process.
  • Require the FTC to presume that an entity is in compliance with this Act if it participates in an approved self-regulatory program.
Rep Stearns' Privacy Bill Balances Consumer, Corporate Needs Stearns introduces online privacy bill (The Hill)

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Federal Communications Commission
Friday, May 6, 2011
10:30 a.m. to 4:30 p.m. (EST)
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DA-11-677A1.doc

The May meeting of the EAAC will focus on results from the national survey and planning for a written report on the data obtained from the survey.


Study Shows Public’s Cable Channels at Greatest Risk

Submitted by benton on Wed, 04/13/2011 - 14:43

Contact: Barbara Popovic
(312) 738-1400
bpopovic@cantv.org

The Alliance for Communications Democracy (ACD) and the Benton Foundation released results of a nationwide study on public, educational and government (PEG) access showing that public access cable channels have been the hardest hit by a wave of funding cuts and closures across the country in recent years. The primary causes are new state franchising laws and decisions of local governments.

“These findings reflect an alarming trend,” said Rob Brading, ACD President. “The loss of Public Access channels closes the door on the local community, including health and jobs groups, housing advocates, small business, churches, and arts and civic groups. Immediate steps need to be taken to stop the erosion of the infrastructure devoted to public use.”

“Public access channels advance first amendment goals through inclusion of a diversity of people, ideas and issues,“ said Benton Foundation Executive Director, Cecilia Garcia. “That’s deserving of our government’s highest protections, particularly at a time of unprecedented media consolidation.” The study looked at results from over 200 PEG centers from around the country, as well as tracking closures of centers in the past five years. Findings show:

  • PEG Access Centers in at least 100 communities across the United States have been closed since 2005. A disproportionate number (93) exclusively served the public.
  • Hundreds more PEG Access Centers in six states affected by state franchising laws may be forced to close or experience serious threats to financial and in-kind support over the next three years.
  • Half of the 165 survey respondents providing financial information for 2005 and 2010 reported an average funding drop of 40% since 2005.
  • The primary reasons cited for reductions in funding and in-kind resources for PEG Access Centers were new state franchising laws and/or decisions by local governments.

The study was conducted by The Buske Group, a Sacramento, California based consulting firm.

The Benton Foundation works to ensure that media and telecommunications serve the public interest and enhance our democracy. It pursues this mission by seeking policy solutions that support the values of access, diversity and equity, and by demonstrating the value of media and telecommunications to improve the quality of life for all Americans.

The ACD was founded over twenty years ago to preserve and strengthen community access to media through participation in constitutional questions and court cases involving community media.

Complete study results are also available at www.theacd.org

Submitted on April 13, 2011

By Cecilia Garcia

Benton and our friends at the Alliance for Communications Democracy (ACD) wanted to get a feel for the state of public, educational and government (PEG) access across the nation. We wanted to see if PEG channels are realizing the promise and optimism expressed back in 1984 by the House Commerce Committee in a report that set forth the reason why these channels are so important.

Public access channels are often the video equivalent of the speaker’s soap box or the electronic parallel to the printed leaflet. They provide groups and individuals who generally have not had access to the electronic media with the opportunity to become sources of information in the electronic marketplace of ideas.
- Source: House of Representatives Report 98-934 (August 1, 1984), Page 30

ACD and the Buske Group set out to gauge the health and well-being of PEG access. The results of their study are in and are disheartening to say the least. Since 2005, PEG access centers in 100 communities have closed. The overwhelming majority of these are public access centers, rather than educational or government channels seen on local cable systems. California has been particularly hard-hit, with 51 closures throughout the state.

Nearly half of those survey respondents who provided financial information for the five-year period of the study (2005 -2010) reported an average funding decrease of nearly 40 percent. Also, 20 percent of those who reported in-kind support from their cable operators reported that in-kind materials and services had been cut back or eliminated during this five-year period.

Interesting to note that more than half of the closures occurred in communities served by Comcast, just as the cable giant was preparing for its merger with NBC Universal. But cable operators were not acting alone here. This study indicates that these PEG closures and cutbacks happened mainly as a result of new state franchising laws, as well as decisions by local governments.

This study also sounds the alarm for the next round of possible closures and reductions. Some 165 respondents reported that they expect reductions in funding or elimination of all services over the next three years.

I just sent a copy of the study to the board of directors of my local public access center, urging them to take these findings seriously and to protect this important resource for my community. Others are sharing this study with policymakers at the federal, state and local levels. Research like this is only valuable if it becomes a tool for change. Hopefully we’ve started a conversation here that will result in moving more of us to action to recapture the promise of PEG access.

April 13, 2011
Source: 
Broadcasting&Cable
Author: 
John Eggerton
Coverage Type: 
Lauren Frayer

The National Cable & Telecommunications Association said that the Agriculture Department's broadband subsidy program wastes millions of dollars to overbuild existing service and, if it is symptomatic of a larger infirmity, could mean it would cost $87.2 billion to reach every unserved household in the country, rather than the FCC's estimated $23.5 billion. NCTA's new study finds that "millions of dollars in grants and loans have been made in areas where a significant majority of households already have broadband coverage," and that "the costs per incremental home passed are therefore far higher than existing evidence suggests should be necessary." The study found that over the three projects analyzed, more than 85 percent of households were already served by existing providers and in one, more than 98% were served by at least one other provider.

Defenders of the program argue that grantees need to be able to provide service in the more lucrative served areas to afford sustainable service to the target unserved areas--sustainability is one of the requirements of the one-time grants and loans. But the NCTA study points to the cost-ineffectiveness of the government spending what amounts to $349,000 per incremental home passed if mobile broadband is counted, and over $30,000 if it isn't. The study was conducted by Jeffrey Eisenach and Kevin Caves of Navigant Economics of Washington.

NCTA: Broadband Subsidies Are Wasting Millions New Study Finds That Rural Broadband Subsidy Program Wastes Funds in Areas Already Served by Broadband (NCTA press release)

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April 13, 2011
Source: 
Washington Post
Author: 
Cecilia Kang
Coverage Type: 
Lauren Frayer

Federal Communications Commission Chairman Julius Genachowski won't talk directly about AT&T’s bid to buy T-Mobile, but he did hint at the agency’s thinking about competition – the key to determining whether to pass the deal.

When asked if the wireless industry is competitive enough, Chairman Genachowski pointed to an FCC report last May on the issue. And what’s interesting is that nowhere in the 281-page report did the FCC say the wireless industry is effectively competitive. That omission was significant, analysts say, because for all the reports before that the agency had concluded that there was enough competition. “We released a competition report that looked at a whole series of metrics and trends,” Chairman Genachowski said. “We looked at real areas of vibrancy and areas where there were questions and concerns.” Specifically, the FCC report found: “There appears to be increasing concentration in the mobile wireless market. One widely-used measure of industry concentration indicates that concentration has increased 32 percent since 2003 and 6.5 percent in 2008.”

FCC's Genachowski hints at lack of competition in AT&T merger bid

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