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The business and technology landscapes can change quickly. Every three years, the Federal Communications Commission fulfills its Congressionally-mandated review that identifies and eliminates unnecessary rules that no longer benefit the businesses we work with. This review also helps the commission promote policies that favor a diversity of media voices, vigorous economic competition, and technological advancement. Section 257 of the Communications Act of 1934 (Communications Act) requires that the FCC review and report to Congress every three years on the Commission’s (1) efforts to identify and eliminate unnecessary regulatory barriers to entrepreneurs and small businesses and (2) and identify and provide proposals to eliminate unnecessary statutory barriers to market entry by those businesses. In this 2009 Section 257 Report to Congress (2009 Report), the Commission examines regulatory actions taken to reduce market entry barriers by each rule-writing Bureau and Office within the Commission since the last triennial report. Further, in the 2009 Report, we also make recommendations for legislative action to reduce statutory barriers to market entry.


Reducing Barriers for Small and Minority-Owned Businesses
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On the one-year anniversary of the announcement of the National Broadband Plan, Broadband Breakfast gathered key industry experts to offer criticism and discuss the government’s implementation of the plan.

“The plan showed that broadband is not a luxury, it’s really a necessity” said Information Technology and Innovation Foundation founder Robert Atkinson, “It showed that speed is not the only goal, it’s also ubiquity and adoption.” Communication architect Daniel Berninger called the plan “too timid,” and said, “the plan will not push us to become number one in the world.” He went onto say connectivity will be the main driving force of the economy in the future. Berninger fears that if the U.S. does not improve its high-speed network availability, it will never be able to overcome China’s massive population advantage. John Erik Garr, former General Manager of the Omnibus Broadband Initiative, disagreed with Berninger’s characterization that the plan was too timid. “We didn't have all the data we needed but we wanted to create an aspirational document which presents a baseline while offering up some long term goals.” Garr said. Jim Baller, founder of the U.S. Broadband Coalition, agreed with Garr, saying, “The plan did not have all the data it needed and therefore a consensus could not be made on what exactly we need.” However, the plan tried to move broadband development forward."


Experts Discuss National Broadband Plan at the Broadband Breakfast Club
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In what they bill as a historic pairing, the heads of CTIA: The Wireless Association and the Consumer Electronics Association have co-signed a letter to Congress taking aim at broadcasters.

It is the latest skirmish in a spectrum battle that flared this week after Federal Communications Commission Chairman Julius Genachowski said the FCC had enough information about where spectrum was being used to know there was a shortage, that cable and satellite operators were not hoarding it, and that it was time for Congress to give the FCC authority to compensate broadcasters for the spectrum the FCC wants to reclaim from them for wireless broadband. In their letter, CEA President Gary Shapiro and CTIA President Steve Largent said that broadcasters should look at themselves when talking about warehousing spectrum. They argue that broadcasters have significant unused spectrum in each market and that even when it is used, broadcasters reach less than 10% of Americans. They said broadcasters "conveniently overlook" those points in a "frantic desire to obfuscate and delay" legislation creating voluntary incentive auctions. They call on the leadership of the FCC oversight committees to move ahead with incentive auction legislation.


CTIA/CEA Tell Congress to Proceed with Incentive Auction Authority
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Netflix has been hit with a potential class-action lawsuit for allegedly breaking a federal law aimed at protecting the privacy of people who rent movies.

In papers filed with the U.S. District Court for the Northern District of California, Virginia resident Peter Comstock argues that Netflix runs afoul of the Video Privacy Protection Act by retaining data about users' movie rental history and recommendations. Netflix "purposefully retains confidential information regarding both payment and video viewing habits for millions of individuals -- even after their subscriptions are canceled," Comstock alleges. Comstock seeks to represent a class of all Netflix users who canceled their accounts more than one year ago. The federal video privacy law, which dates to 1988, specifically prohibits "videotape service providers" from releasing consumers' records without their permission. Congress passed the measure after a newspaper obtained and printed the video rental records of Judge Robert Bork in conjunction with his ill-fated nomination to the U.S. Supreme Court. The law also requires providers to destroy consumers' video rental records within a year of the time the provider no longer needs the data. One purpose of that provision was to minimize the privacy risk to consumers, says Marc Rotenberg, director of the Electronic Privacy Information Center and former counsel to Sen. Patrick Leahy, who drafted the Video Privacy Protection Act. But the law's wording leaves some room for doubt about whether it applies online.


Close-Up: Netflix Hit With Privacy Suit Is Netflix’s Practice Of Retaining Information About Ex-Customers Legit? (paidContent.org)
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The Office of Management and Budget needs more money to facilitate face-to-face meetings with agency leaders to review faltering information technology projects so they can enforce corrective actions promised during those sessions, the federal chief information officer said.

So-called TechStat sessions, which OMB began conducting in January 2010, would be held more frequently if lawmakers funded a proposed $60 million account that they chose not to support at all last year. The government spends about $80 billion annually on IT. The fiscal 2011 budget request for "integrated, efficient and effective uses of IT" was $50 million. The $60 million pool of money proposed for fiscal 2012 also would support the White House strategy for shutting down 800 energy-intensive data centers and moving more federal computing to Web-based, or cloud, IT operations. The money would remain available until Sept. 2014.


OMB: It takes money to save money in IT operations
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To keep the Internet “forever young,” decision makers should keep in mind that the world is divided between rich and poor nations with vastly different needs, former President Bill Clinton told a packed crowd as the keynote speaker at the meeting of the organization that oversees the Internet’s naming system. “Every time you have to face a question about the future of the Internet, what applications will this have in poor countries and rich countries, ask yourself that,” said Clinton. Clinton made the remarks at the annual meeting of the Internet Corporation for Assigned Names and Numbers. In a far-ranging speech, he touched on Haiti, the financial crisis, job loss, basketball, the human genome and Egypt and Libya. “Are we forming a more perfect union across the world?” he asked.


President Clinton: Bridge global digital divide
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The porn industry is about to get .xxx as its own .com — and after years of protests by the Bush administration, the Obama administration is standing on the sidelines as it happens.

The Internet Corporation for Assigned Names and Numbers (ICANN), the non-profit California corporation that oversees the creation of top-level domain names like .com, .net and .biz, is expected to approve the .xxx domain on March 18. The move would cap a struggle that began in 2005 when a Florida company called ICM Registry applied to introduce .xxx as a new suffix for the adult-entertainment industry. Religious groups protested with a letter-writing campaign, and the Bush administration urged ICANN to hold off.


Obama administration mum as .xxx nears approval

Shortly after 12:46 am EST on February 11, when a massive 8.9 magnitude earthquake hit off the coast of northeast Japan, Twitter began to reverberate with posts about the catastrophe.

"Major quake shakes Japan - preliminary M7.8," tweeted Martyn Williams, a reporter and bureau chief for the IDG News Service. "JMA warns of tsunami, up to 6 meters off Miyagi coast." "wow, that was a crazy earthquake... ran out of the building. 7.9 at epicenter," posted tech blogger Chris Latko from the scene. For the one day, Friday, March 11, fully 66% of the news links on Twitter were about the Japanese earthquake and tsunami, according to the New Media Index from the Pew Research Center's Project for Excellence in Journalism. For the entire week, March 7-11, 20% of the news links were on that subject, making it the No. 1 story. The response to the earthquake illustrated the different ways in which Twitter functions as a social media tool. Initially, the site served as a way to get breaking information from a variety of official and unofficial sources, including some eyewitness accounts. It also acted as an electronic bulletin board, passing on tips about everything from the location of bathrooms to ways of tracking loved ones. And once the scope of the catastrophe became apparent, Twitter became a place to raise funds for the recovery effort and for users to express their thoughts and condolences for the victims.


Twitter Responds to the Japanese Disaster
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The recovery in advertising spending continued in the fourth quarter last year, resulting in a solid full-year gain compared with the results of 2009. Ad spending in the United States in the fourth quarter increased 7 percent from the same period of 2009, said Kantar Media, a unit of WPP that tracks marketing activity in major media. That, added to the results from the first three quarters of 2010, combined for a total increase of 6.5 percent compared with 2009. In 2009, ad spending fell 12.3 percent compared with 2008 as the poor economy led many marketers to cut back their spending for advertising. The gain of 7 percent for the fourth quarter was an improvement from the increase registered in the first three quarters of 2010 compared with the same period the previous year, which was 6.4 percent.


Last Year Was a Good Year for Ad Spending, Report Finds Amid Ad Turnaround, Print Media Continues To Lose Ground (MediaPost)
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Already big users of the mobile Web, Japanese citizens have relied on their cell phone Internet connections in the wake of last week’s massive earthquake and tsunami. In a blog post, comScore noted that just after the March 11 earthquake, there was a spike in traffic from both PCs and mobile users, but that over the next few days, the increase shifted mainly to mobile devices. Japan, it notes, is the country with the highest rate of mobile media use, with three-quarters of cell phone owners using various mobile media. “In the wake of the disaster, with those who were stranded unable to use computers to get information or rely on landlines to communicate with loved ones, mobile media use in Japan saw an increase,” comScore said.


Mobile Internet Traffic in Japan Spikes After Quake, Tsunami