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Verizon announced new FiOS pricing options which allow customers emphasize either broadband or video in their service bundles.

The new pricing option lets FiOS customers buying bundled video and broadband to increase the speed of their broadband connection to the next service level for an additional five dollars a month without changing their channel lineup. They also will have the option of upgrading their broadband service by two service tiers for an additional ten dollars a month. Alternatively, FiOS customers can pay an additional ten dollars a month to upgrade their video service from 200 to 400 channels without increasing their broadband speed. Previously the jump from one tier to the next was fifteen dollars.


New FiOS pricing bundles let customers boost broadband or video service only
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Even as public television and radio stations across Florida work furiously to cope with the recent veto of nearly $4.8 million in state funding, there is one public broadcaster that will see its state support increased.

WFSU in Tallahassee will receive $2.8 million that Gov. Rick Scott left untouched in next year's budget, specifically funding TV and radio projects often focused on the workings of state government. The cash includes $1.8 million for the Florida Channel, a TV outlet based in the state Capitol that features live, unedited coverage of the governor and Cabinet, Legislature and Supreme Court. There's another $340,862 provided for closed captioning of the channel. WFSU also gets $497,522 for "statewide government and cultural affairs programming," which includes funding for the 30-year-old Florida Crossroads documentary series and the Florida Public Radio Network — a service to all public radio stations in the state that provides "in-depth coverage of the Florida Legislature, state government and issues that affect the state." Along with $162,750 provided for satellite uplink equipment, WFSU will receive a hike for these projects of more than $500,000 from last year's budget levels.


Florida Governor Vetos Public Broadcasting Funding

A run of gloomy news -- more partisan disagreement on raising the debt ceiling, rising unemployment numbers and continued housing woes -- drove the economy to the forefront of the media agenda last week.

As the recovery appeared to falter, the U.S. economy accounted for 19% of the newshole during the week of May 30-June 5, according to the Pew Research Center’s Project for Excellence in Journalism. That represented the biggest week for economic coverage since April 11-17, when the narrowly averted government shutdown helped to make that subject the focus of 39% of the newshole. The growing sense that the economic recovery has stalled invited the media to weigh the impact on President Obama, with analysts noting that his reelection prospects were not helped by last week’s news. The week’s No. 2 story was a related subject -- the 2012 presidential election -- that has slowly but steadily crept to the fore of the mainstream media agenda. Last week, attention to the race -- mostly focusing on the emerging and potential crop of Republican candidates -- accounted for 12% of the newshole, its biggest week of coverage yet.


Bad News Drives Economy Coverage
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Dr. David Blumenthal, the former head of the Office of the National Coordinator for Health Information Technology at HHS, has been named chairman of the Commonwealth Fund's 17-member Commission on a High Performance Health System.

Blumenthal succeeds Dr. James Mongan, the former president and CEO of Partners HealthCare System, Boston, who died May 3. The commission, formed in 2005, has worked to "highlight specific areas where health system performance falls short of what is achievable and to recommend practical, evidence-informed strategies for transforming the system," according to the organization's website.

Blumenthal, a Harvard University researcher, was named by President Barack Obama to be the third ONC leader. He served from April 2009 to April 2011. He returned to academia after leaving the ONC and is a professor of medicine and healthcare policy at Massachusetts General Hospital, the Partners HealthCare System and Harvard Medical School, all in Boston.


Blumenthal to chair Commonwealth Fund commission
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Under a proposed rule, Medicare and private sector claims data could be used to produce public reports that evaluate the performance of physicians, other healthcare providers, and suppliers.

The Centers for Medicare & Medicaid Services is proposing to allow organizations that meet certain qualifications -- including having the capacity to process the data accurately and safely -- to have access, for a fee, to patient-protected Medicare claims data from Parts A, B and D. The Medicare information would be combined with private-sector claims data to identify physicians and hospitals that provide the highest quality care at the most cost-effective rates.


Centers for Medicare & Medicaid Services Opens Medicare Transparency Proposal for Comment
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A leading Chinese government newspaper lashed out at Google, saying the company's allegations of China-based hacking were a politically motivated attempt to spark new disputes between China and the US.

The People's Daily, the official mouthpiece of the ruling Communist Party, printed the editorial on the front page of its overseas edition Monday with the headline, "Google, What Do You Want?" It said the company's allegations last week were politically motivated with "a vicious intent of sparking new disputes concerning Internet security between China and the U.S." Google had said hackers in Jinan, the capital of China's eastern Shandong province, tried to hijack the Gmail accounts of senior U.S. officials and other people by tricking them into disclosing their passwords. "Google shouldn't engulf itself in the international political war as a tool for political gaming," said the commentary, written by editor Zhang Yixuan. If there is "any change in the international atmosphere, I am afraid Google will become a target to be sacrificed by politics, and also will be discarded by the market."


Official Chinese Media Lash Out at Google China Rejects Google’s Hacking Charge (NYTimes) People's Daily Raps Google Over Email Accusations (WSJ)
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In America, according to the comedian George Carlin, there are seven words to avoid saying on television. In France, the equivalent list has just grown by at least two: “Facebook” and “Twitter.”

Like broadcasters elsewhere, French news anchors sometimes urge viewers or listeners to visit Twitter or Facebook to receive updates or to comment. In a decree issued last week, the regulatory agency that oversees French television and radio said broadcasters should not mention the names of specific Internet companies when doing so, calling this a violation of French rules banning surreptitious advertising.


French Broadcasters Told to Watch What They Say

Iran is taking steps toward an aggressive new form of censorship: a so-called national Internet that could, in effect, disconnect Iranian cyberspace from the rest of the world.

The leadership in Iran sees the project as a way to end the fight for control of the Internet, according to observers of Iranian policy inside and outside the country. Iran, already among the most sophisticated nations in online censoring, also promotes its national Internet as a cost-saving measure for consumers and as a way to uphold Islamic moral codes. In February, as pro-democracy protests spread rapidly across the Middle East and North Africa, Reza Bagheri Asl, director of the telecommunication ministry's research institute, told an Iranian news agency that soon 60% of the nation's homes and businesses would be on the new, internal network. Within two years it would extend to the entire country, he said.


Iran Vows to Unplug Internet

[Commentary] Since its founding 25 years ago, the Minority Media and Telecommunications Council (MMTC) has been a vocal opponent of consolidation in the media and telecommunications industries. A transaction may be compelling to shareholders or have an attractive economic rationale, but transactions that shrink a sector usually come at the expense of communities of color. Too often, what may appear to be “good” for a company is, in fact, bad for minorities. Thus MMTC has never affirmatively endorsed a proposed merger – until now.

This transaction is fundamentally different from past transactions because of what’s at stake – the future of wireless broadband. Mobile broadband is profoundly important in connecting minorities to the Internet. For 4G to be rolled out in a manner that is both swift and inclusive of minorities, broadband providers will require massive amounts of new spectrum to build 4G networks. The proposed merger of AT&T and T-Mobile would help solve the spectrum crunch by putting this scarce resource to the most efficient and consumer welfare-enhancing uses. According to AT&T, this merger would give it “the scale, spectrum, and resources that will enable it to deploy LTE [its 4G network] to more than 97 percent of Americans, many of them in the rural areas and small towns most in need of greater broadband deployment and economic development.” The transaction would result in better wireless broadband connectivity in very large and disproportionately minority markets like Los Angeles, Houston, Detroit, and Washington (DC).

In the absence of such a solution to the spectrum crunch, carriers may begin to raise prices in order to suppress demand for advanced services. There is another reason to be optimistic and enthusiastic about this transaction: AT&T has a long record of excellence when it comes to diversity and working to inclusion.

Thus the proposed merger warrants a departure from MMTC’s history of opposition to such transactions. The nation has robust wireless and broadband networks. But spectrum resources are quickly running out. The proposed merger of AT&T and T-Mobile is a natural next step in the evolution of the marketplace. Done right, this transaction will be a boon to all consumers.


Why MMTC is Endorsing the AT&T / T-Mobile Merger
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In March 2011, AT&T announced that it was planning to acquire T-Mobile USA for $39 billion. This was the unexpected culmination of months of rumors about the sale of the ailing T-Mobile. Many analysts had seen Sprint as the most likely partner, but it was AT&T that made the successful bid after it was approached by T-Mobile parent Deutsche Telekom.

Quick research gathered from the Web sites of various wireless providers presents a set of facts that do not support claims that T-Mobile is the lowest-cost provider. Furthermore, trend lines for wireless pricing before and after wireless mergers do not support the theory that the merger will lead to price increases. As the late Sen. Daniel Moynihan (D-NY) famously said: "We are all entitled to our opinions, but not our own facts." Nationwide, consumers have at least three offers available to them that are lower in cost than T-Mobile's current offerings. Boost Mobile, which is owned by Sprint, and Tracfone's Straight Talk both offer nationwide plans that provide a lower-cost option. In fact, Sprint's Boost Mobile, Leap Wireless, Metro PCS, and Straight Talk are all gaining customers, while T-Mobile's higher-priced services are losing customers. It is highly doubtful that Sprint, Leap, Metro PCS, and Tracfone will raise prices while competing vigorously against each other for customers at the low-cost end of the market, just because a higher-priced competitor is no longer competing.

The best way to describe T-Mobile at this time is as "the most expensive low-cost phone provider"--an oxymoron indeed, and the exact reason for T-Mobile's customer losses. The root of T-Mobile's current churn and customer drop-offs lies in the lack of focus on a clear consumer segment. The provider's plans are too expensive to appeal to customers who seek low-cost plans, while it is unable to provide a network that will satisfy the demands of customers who are willing to pay a premium.

Another popular argument against the merger is that prices would rise--a claim made in regard to every proposed merger. In the wireless industry, however, this has not been proved; in fact, it is quite the contrary.

What is perhaps even more interesting is that Sprint, while loudly opposing the acquisition, will in all likelihood be the biggest winner from T-Mobile's disappearance. It is already the best-positioned value provider in the wireless industry. Sprint's postpaid plans are providing great value, while its Boost brand is a leader in the disruptive unlimited segment, and its Virgin Mobile brand is well represented in the per-minute prepaid segment. No other provider has as firmly anchored itself as the low-cost provider as Sprint has, and no other carrier in the U.S. has done a better job of improving its customer service.

For Sprint, the merger (and opposing it) represents a win-win opportunity. By opposing the merger, Sprint makes the lives of two of its competitors more difficult and increases the chance Sprint will secure extensive and favorable conditions on the merged entity. If it succeeds in blocking the merger, Sprint will have forced AT&T and T-Mobile to waste an entire year of valuable management time that could have been used to make Sprint's life more difficult. T-Mobile would be in a particularly difficult position to reinvigorate a workforce and attract new customers. After all, how do you gain customers when your company is viewed as uninterested in staying in the United States and without a vision for the future, but was forced by regulators to still compete? In sum, opposition based on fears of price increases or a sense that T-Mobile is the lowest-cost provider, and therefore needs to remain a standalone company, is wrongheaded, because it's not based in reality.

[Entner is the founder of Recon Analytics]


Sprint the winner if AT&T absorbs T-Mobile?