August 2009

As more people ditch landline phones for mobiles, America's regulators need to respond

Copper landlines are now an obsolete technology. In these difficult times ever more Americans are heeding this advice and dropping their telephone landlines in favor of mobile phones. Despite some of the flakiest mobile-network coverage in the developed world, one in four households has now gone mobile-only. At current rates the last landline in America will be disconnected sometime in 2025. Rather than trying to keep a 19th-century technology alive, America's telecoms rules must be updated to foster the roll-out of this new, 21st-century infrastructure. Alas, attempts to reform the notoriously bureaucratic Universal Service Fund, the main source of subsidies to make landlines affordable, have gone nowhere. Everyone agrees on the importance of expanding access to broadband—until it is time to hammer out the specific details. Now Barack Obama wants a national strategy. He would do well to concentrate on two things his country needs in the future, not the past: better and more reliable wireless coverage; and more broadband connections, through fibre-optic cables and high-speed wireless links (for both voice and data).

Is radio suppressing pro-Performance Rights Act artists?

There's a new battle developing in the bitter war over the Performance Rights Act—proposed legislation that would require terrestrial radio stations to pay royalties to the artists whose songs they broadcast. The Federal Communications Commission has agreed to hear comments on reports that radio station owners are "targeting and threatening artists who have spoken out in favor of the PRA," with some going so far as refusing to play their music. The FCC is responding to a Petition for Declaratory Relief submitted by the MusicFIRST coalition, a group backed by the Recording Industry Association of America, SoundExchange, and various musicians' groups. In addition to accusing radio stations of "engaging in a pattern of threats and intimidation against artists to chill their speech," MusicFIRST says they are refusing to run the coalition's ads. All this is part of a coordinated campaign "designed to spread malicious and untruthful information—all in an effort to avoid royalty payment to artists," the group warns.

US tests censorship circumvention tool; Chinese shrug

Citizens living in China, Vietnam, Iran, and other countries may soon have another option for bypassing Internet filters, courtesy of a US-based agency. The Broadcasting Board of Governors (BBG) announced on Friday that it was working on a new system that would use e-mail to carry encrypted data to and from the recipient, including information that would otherwise be blocked. The system, called "feed over e-mail" (FOE), is not yet ready for primetime, but BBG IT head Ken Berman said that it will be tested in China and Iran when it goes into beta. "China is the benchmark, the gold standard, of Internet censorship," Berman told the AFP. "We try things. The idea is to extend freedom of the Internet, freedom of the press, freedom of inquiry to those that want to know more." Because the BBG would like to avoid tipping off the two governments before the software even gets to be tested, there are few details on how FOE currently works. It does, however, appear to be taking a different approach to filter circumvention by using e-mail instead of the traditional Web proxies used by some of the more prominent systems. Berman said that FOE uses encryption that comes with most e-mail systems, including Gmail, Yahoo Mail, and even Hotmail, to transmit news. One individual who helped develop FOE, Sho Ho, told Reuters that it could easily be tweaked to work with mobile phones, as well.

Sen Grassley Seeks Fairness Doctrine Clarification

Sen Charles Grassley (R-Iowa) has written Federal Communications Commission Chairman Julius Genachowski a letter, asking Chairman Genachowski to reaffirm his opposition to re-imposition of the Fairness Doctrine. Chairman Genachowski has been clear during and after his confirmation process that he has no intention of resuscitating the long dead policy, by Sen Grassley is concerned because the chairman recently appointed Mark Lloyd to be the FCC's chief diversity officer. As a senior fellow at the Center for American Progress, Lloyd co-authored a June 2007 paper, "The Structural Imbalance of Political Talk Radio," which suggests ways to balance conservative talk radio, including station ownership caps, more licensing oversight and allowing stations who do not want to meet public interest benchmarks to pay a fee to support public broadcasters.

Funding advice for online learning

As online learning continues to gain momentum across the country, education experts are warning that policies surrounding this popular learning option are shaky at best. A new report by the International Association for K-12 Online Learning (iNACOL) is calling for a better policy and funding framework to make sure students are getting the best education possible. The report details many considerations policy makers must take into account for online learning, the first being that there are many "dimensions," or programs that vary widely in comprehensiveness, reach, delivery methods, locus of control, and more.

Issa wants answers from White House on e-mails

Rep Darrell Issa (R-CA), the ranking Republican on the House Oversight and Government Reform Committee, wants more answers from the White House about its e-mail policies. In a letter to White House counsel Greg Craig, Rep Issa on Monday raised questions about the White House's request for supporters to forward "fishy claims" about healthcare. He says such a request could have a "chilling" effect on free speech and asked the president to ensure that the e-mails will be stored properly but not used for political purposes. "To help ease these concerns, please tell us what actions take place or have been discussed in regard to e-mails deemed 'fishy' and what safeguards the White House has put in place to insure [sic] no retributive steps are taken against those who express dissent," Rep Issa wrote.

Television -- As We Know It -- Is Finished

Network TV may be a cyclical business -- but for bruised and battered broadcasters battling the worst economy in a generation, there's little evidence to suggest a bounce back is in the cards anytime soon. If anything, things could get a lot worse before they get better. Some observers are even beginning to question whether there will ever be a turnaround, predicting that the business model which has sustained broadcasters for close to 60 years has begun an irreversible decline. The latest blow: A disastrous upfront advertising market that saw revenues plunge an estimated 15 percent from last year, dropping from $9.2 billion in 2008 to around $7.8 billion, according to estimates by several publications.

Television's killer app: New HD TVs equipped with Internet connection

Cable and broadcast networks are already facing eroding viewership, partly due to audiences surfing the web on their laptops and netbooks. Now the World Wide Web is extending its tendrils into the networks' home turf: The TV screen itself. A new wave of HD TVs -- some already in stores -- let the viewer connect the Internet directly to the TV set. Beyond serving as normal TVs, these sets are built to stream a host of Internet sites, including YouTube and Picasa, as well as video-on-demand services from Netflix, Blockbuster and Amazon. So new is this feature that some electronics stores aren't even aware of it yet. Yet Internet-enabled HDTVs are expected to quickly add an Internet wave for couch-based channel surfers. Market researcher the Yankee Group predicts 50 million people will have such sets by 2013. Another 30 million, it says, will have Web-connected Blu Ray players -- and 11 million will have purchased media adaptors, giving nearly 100 million people Web video on their TVs without hooking up a PC.

Stations Should Join Cable In 2-Way Play

[Commentary] The cable guys have quietly been getting ready to introduce interactive technologies. Interactive TV is long overdue and non-believers are once again believers. And the good news is that TV stations will be able to participate in the new two-way services (and revenue streams), albeit in partnership with cable. The key is the interactive TV standard developed under the aegis of Cable Labs. EBIF, as it is called, permits multiple programmers to offer interactive features to consumers through EBIF-enabled, set-top boxes. Canoe Ventures and Verizon's Developers Program, two platforms leveraging EBIF, are talking about deployments in millions of homes by the end of 2009. Broadcasters, perhaps unknowingly, have been installing gear that will allow them to create interactive content. They should not miss the opportunity.

Can Anyone Tap the $100 Billion Potential of Hyperlocal News?

Community-driven news services have been the next big thing online for years. Hyperlocal sites -- covering cities, towns, or just a neighborhood -- can deliver precision-targeted advertising to local and global businesses. As the once-exponential growth rate for most Internet advertising in the United States grinds to a halt, the online local-advertising market is projected to grow 5.4% in 2009 to $13.3 billion, according to media research firm Borrell Associates. Can The New York Times or AOL find the $100 billion local-advertising pot of gold?