June 2009

Wireless Can Solve 'Last Mile' Competition Problem, McDowell Tells Senators

Robust competition and expanded wireless services will be fundamental pieces of the Federal Communications Commission's national broadband plan, Commissioner Robert McDowell told members of the Senate Commerce Committee Tuesday. McDowell appeared before the committee as it considered his nomination for a second term on the agency. The communications marketplace has evolved in ways that have been "nothing short of amazing" since he joined the commission three years ago, McDowell said in his opening statement. McDowell pointed out that broadband subscriptions have grown by 40 percent over that time. And nearly 20 percent of households subscribe only to wireless communications services, he said, including wireless broadband - which he claimed has grown by 400 percent. Those services are increasingly important to American business, McDowell said. "America's economy rides on the rails of the communications sector," he said. McDowell pledged to encourage policies to foster "sustainable economic growth." The FCC's role is "more important now than ever," he said.

Broadband Conduit Bill Gets Senate Companion, Genachowski Endorsement

Legislation to require federal highway construction to include conduits and fiber was introduced in the Senate Monday by Sens Amy Klobuchar (D-MN) and Mark Warner (D-VA). The Broadband Conduit Deployment Act of 2009 joins a similar House bill introduced last month by Rep Anna Eshoo (D-CA). The bill is almost identical to H.R. 2428, which amends the Federal Highway Act to require new construction using federal funding to employ "industry best practices" in placing "an appropriate number of broadband conduits" to accommodate multiple broadband providers. The Secretary of Transportation would be responsible for determining the number and placement of such conduits. The bill is largely based on the work of the New America Foundation, which released a paper on building "a 21st Century Broadband Superhighway" in January.

Senate panel takes up Genachowski nomination

Julius Genachowski moved one step closer to taking his post as Chairman of the Federal Communications Commission. The attorney-turned-entrepreneur received a strong endorsement from opponents of media consolidation during his confirmation hearing before the Senate Commerce Committee. Genachowski told the committee he would focus on implementing a national broadband service plan, promoting more consumer choices in telecoms, and making the agency's work more transparent to outsiders. Committee Chairman Jay Rockefeller (D-WV) criticized the previous Republican-led FCC for pursuing a deregulatory agenda and lauded Genachowski. "Fix this commission or we will fix it for you," was the charter handed out sternly by Chairman Rockefeller. He said the commission had shortchanged consumers and the public interest, helping special interests at the expense of consumers. He even extended that to the "distasteful way" he said those special interests had clamored for their preferred FCC nominees. Sen Rockefeller said he was "thoroughly impressed" with Genachowski. The Committee wants to expedite a vote on Genachowski's nomination, as well as that of Republican FCC Commissioner Robert McDowell, but Senator Mark Pryor (D-Ark) said there was still no agreement on when that vote would be. From the praise both roundly received from both Democrats and Republicans, both seemed slated for approval.

Panel Offers Initial Criteria for Defining 'Meaningful Use'

Today, a Health IT Policy Committee work group released its initial recommendations for defining "meaningful use" of electronic health records (EHRs). Although the work group's recommendations do not include a formal definition of meaningful use, they offer 22 objectives for EHRs by 2011. The objectives call for qualified EHRs to: 1) Allow patients to access clinical information; 2) Comply with state and federal privacy, security and data sharing regulations; 3) Document patient progress and provide clinical summaries; 4) Exchange critical information with other care providers; 5) Implement drug interaction safeguards; 6) Send patient reminders about follow-up and preventive care; 7) Submit immunization and laboratory data to relevant public health registries; and 8) Use computerized physician order entry systems to transmit prescriptions. In addition, the group released an "achievable vision," which calls for EHR systems to help reduce cardiac arrest, medical errors and preventable hospitalizations by 2015.

Verizon, AT&T deny collusion on texting prices

Verizon and AT&T took issue with (some say umbrage with) assertions that they colluded in setting prices for text messages, saying on Tuesday that prices for most customers had fallen and the market was competitive. Se. Herb Kohl, Chairman of the Senate Judiciary Committee's antitrust subcommittee, said he was concerned that the four largest cell phone companies doubled their text message rates from 10 cents in 2006 to 20 cents in 2008. "These sharp price increases raise concerns. Are these price increases the result of a lack of competition in a highly concentrated market?" he asked, adding that the subcommittee had urged the Justice Department to scrutinize any future mergers or allegations of anticompetitive practices in the industry. But the general counsels of both Verizon and AT&T argued that the price increases affected 1 percent of text messages sent because most consumers bought volume plans that lowered the per-message cost.

Who Really Owns Your Phone?

[Commentary] This week the Senate Commerce Committee is looking at the wireless marketplace from the consumer's perspective. There are now 270 million cell phone subscribers in America, and 18 percent of households rely solely on wireless phones to communicate. That number's growing, and it doesn't take a big leap to understand that the future of telephony in this country is traveling through the airwaves, not buried in the ground. We need to be focused on ensuring that the wireless marketplace remains competitive, and that consumers have access to innovative technologies whether they live in a densely populated city or a sparsely populated small town. Here's the issue I think we need to wrestle with: wireless service providers are largely deciding what phone you can use. We don't see that happening in similar markets. Your broadband provider doesn't decide what kind of computer you can connect to at the end of your DSL or cable wire. And forty years ago, the FCC ruled in the historic Carterfone decision that AT&T couldn't pick and choose which phones can and can't connect to its network. Is the status quo the right model for maximizing innovation, competition and consumer choice? Or do we need a change?

Obama backs repeal of tax on personal cell phones

The Obama administration on Tuesday said it will back repealing a hard-to-enforce tax on personal use of work cell phones, appeasing the business community, phone makers and users. A 1989 law requires companies seeking to deduct worker cellphones as an expense to track personal use with painstaking documentation of minutes. The government, in a notice last week sought public comment on making compliance easier, but now says the law should be scrapped altogether. Treasury "Secretary (Timothy) Geithner and I ask that Congress act to make clear that there will be no tax consequence to employers or employees for personal use of work-related devices such as cellphones provided by employers," Douglas Shulman, the Internal Revenue Service Commissioner, said in a statement.

The Nation's CIO: Government Needs a Dashboard

Vivek Kundra, the nation's new chief information officer, will manage $76 billion in spending to maintain 10,000 government systems as well as 800 active projects to build major new systems (those costing $50 million or more). And dashboards are a critical tool. By the end of June, CIO Kundra hopes to start yet another federal Web site that will give officials and the public a window into all of the active government technology projects. For each project, it will show the purpose, schedule and budget. It will show the name and photo of the federal official responsible and the names of which contractors are working on the project, a fact that CIO Kundra says oddly has not been made public before. Most important, it will keep track of what Kundra believes are leading indicators that a project is going awry.

US State Department speaks to Twitter over Iran

The US State Department said on Tuesday it had contacted the social networking service Twitter to urge it to delay a planned upgrade that would have cut daytime service to Iranians who are disputing their election. Twitter and Facebook have been used as a tool by many young people to coordinate protests over the election's outcome. Twitter Inc said in a blog post it delayed a planned upgrade because of its role as an "important communication tool in Iran." The hour-long maintenance was put back to 5 p.m. EDT/2100 GMT, which corresponds to 1:30 a.m. on Wednesday in Iran. The upgrade originally had been planned for Monday night in the United States, which would have cut daytime service in Iran on Tuesday.

Satellite Draft Bodes Well For Broadcasters

House Communications Subcommittee Chairman Rick Boucher (D-VA) on Monday released a narrow discussion draft of a bill to reauthorize for five years provisions of the Satellite Home Viewer Act set to expire Dec. 31. As written, the proposal leaves out language opposed by broadcasters that would allow satellite and cable providers to import signals of stations in adjacent markets. CBS, NBC and FOX have argued the change could be disadvantageous in retransmission consent programming negotiations. Another key section attempts to level the playing field between local stations and those deemed by the FCC to be "significantly viewed." The draft would update the statute to account for last week's nationwide shift to digital television and directs the FCC to update its predictive modeling methods for gauging how well certain locations receive satellite signals in an all-digital environment.