August 2009

To Spread Broadband, $7.2 Billion Isn't Enough

[Commentary] Access to telecommunications networks for all Americans has been the centerpiece of US information policy for 75 years. Now the US government is endeavoring to equip every citizen with broadband Internet access. But the $7.2 billion Congress has allocated for the plan may not stretch as far as lawmakers envision. Some companies and consumer groups have advised the Federal Communications Commission to set a goal for national broadband speeds of 10 million to 20 million bits per second. Meeting that goal will require network speeds 20 to 100 times faster than is typical in today's networks, which were designed for voice or one-way video distribution. Upgrading, extending, and adding to today's networks will require enormous capital expenditures. The problem is, nobody really knows how much capital will be needed. The broadband goal isn't yet defined, and the U.S. doesn't have an accurate count of how many households lack Internet connections or are "underserved" by slower networks. Part of the government's stimulus money will go toward defining this "broadband gap." Closing the gap could be more expensive than the country expects, however, and will depend on several technical and geographic factors.

Top Cybersecurity Aide At White House Resigns

Melissa Hathaway, the White House's senior aide on cybersecurity, has decided to resign following delays in the appointment of a coordinator to spearhead the government's efforts to protect the nation's computer networks. Hathaway, who also served as a cybersecurity aide during the Bush administration, had been a contender for the position of cybersecurity coordinator. But in an interview Monday, she said she had withdrawn her application. "I wasn't willing to continue to wait any longer, because I'm not empowered right now to continue to drive the change," she said. "I've concluded that I can do more now from a different role," most likely in the private sector. Hathaway noted that it has been two months since President Obama made a highly acclaimed speech on the importance of cybersecurity and pledged to "personally" select a cybersecurity coordinator. A colleague close to Hathaway said she had become dismayed by the delay in the appointment. The colleague, who spoke on condition of anonymity, added that Hathaway had "the sense that this was very political, that she has been too closely tied to the Bush administration."

Security researchers offer caution on smart grids

The race to build a "smarter" electrical grid could have a dark side. Security experts are starting to show the dangers of equipping homes and businesses with new meters that enable two-way communication with utilities. There are many benefits to upgrading the nation's electricity networks, which is why a smart-grid movement was already revving up before the recent economic recovery package included $4.5 billion for the technology. Smarter grids could help conserve energy by giving utilities more control over and insight into how power flows. But presentations at the Black Hat and DefCon security conferences in Las Vegas this week highlighted potential problems with moving too fast. The risks are similar to what happens when computers are linked over the Internet. By exploiting weaknesses in the way computers talk to each other, hackers can seize control of people's machines. In the case of the power grid, better communication between utilities and the meters at individual homes and businesses raises the possibility that someone could control the power supply for a single building, an entire neighborhood, or worse.

Iraq Censorship Laws Move Ahead

The doors of the communications revolution were thrown open in Iraq after the American-led invasion in 2003: In rushed a wave of music videos featuring scantily clad Turkish singers, Web sites recruiting suicide bombers, racy Egyptian soap operas, pornography, romance novels, and American and Israeli news and entertainment sites that had long been blocked under Saddam Hussein's rule. Now those doors may be shut again, at least partially, as the Iraqi government moves to ban sites deemed harmful to the public, to require Internet cafes to register with the authorities and to press publishers to censor books. The government, which has been proceeding quietly on the new censorship laws, said prohibitions were necessary because material currently available in the country had had the effect of encouraging sectarian violence in the fragile democracy and of warping the minds of the young.

Radio Free America

[Commentary] Songwriters and publishers are paid when their tunes are played on the radio, but none of the artists or musicians who bring the music to life receive even a penny. The Senate Judiciary Committee is holding a hearing today on legislation that will right this wrong, which dates back to the early days of sound recordings. Terrestrial radio is the only radio platform that still doesn't have to pay these royalties. Singers and musicians, as much as songwriters, create something when they perform — and we should make sure all artists are paid when their creations are heard on the radio. [Nancy Sinatra has boots made for walking.]

A Look Ahead at the Money in the Communications Industry

Veronis Suhler Stevenson will release predictions in the Communications Industry Forecast today. Veronis Suhler invests in information, education and media, and those fields are what it measured in the forecast, the 23rd annual version. The company looks at the total spending on communications, including advertising, spending from consumers or businesses and items like retransmission fees for television. It includes traditional and new media along with information providers to businesses (like Lexis-Nexis), trade shows and education and training information, making its analysis broader than most other media reports. Despite all the bad news about the media industry, it is expected to be the third-fastest-growing economic sector over the next five years, after mining and construction. Almost none of that growth is forecast to come from shrinking traditional media, however. Instead, it will be drawn from areas like word-of-mouth marketing and public relations (with a 9.2 percent compound annual growth rate from 2008 through 2013), branded entertainment (9.3 percent) and the Internet and mobile devices (10.2 percent).

Rivalry Between Apple and Palm Intensifies

The Palm Pre has a large touch screen, slide-out keyboard and fast Web browsing. Palm also likes to point out that another selling point is the smartphone's ability to link to iTunes, Apple's music and media store. Trouble is, Apple wants to make sure the iPhone is the only cellphone that can do that. So it changed its software to block the Pre's access to iTunes. Now Palm is calling foul and is trying to rally the consumer electronics industry to its defense. Palm says that Apple, which allows only its own devices to connect directly with iTunes software, is misusing the standards put in place to foster interoperability between computers and devices using a USB connection. Palm has filed a complaint with the U.S.B. Implementers Forum, an industry group established by technology companies that developed the technology that links computers to other electronic devices, claiming Apple is restraining trade. Predicting the outcome of this particular filing is tricky.

Take Two Digital Pills and Call Me in the Morning

Dozens of large and small companies are turning to wireless technology to achieve what the Obama Administration is seeking through legislation: a health-care system that keeps people healthier for less. But claims about cost savings from new technology often don't pan out. There are "precious few" studies that back up such promises involving remote monitoring, says Mark Holland, managing director of System Research Services, an advisory firm focusing on health-care technology. And if reimbursements from Medicare or private insurers don't cover the cost of high-tech approaches, doctors and hospitals won't want to deploy them.

EU says a third of Europeans never used Internet

One third of European Union citizens say they have never used the Internet, compared with 40 percent in 2007, an EU study showed on Tuesday. In the report on the digital economy in the 27-nation EU, the European Commission also said more than one in four Europeans had never used a computer and 40 percent had no Internet access at home. Among those not having an Internet link, more than a third said they did not see the need while roughly one in four said they could not afford it. Older people -- above the age of 65 -- and the unemployed were the least active online. The Commission, the EU's executive arm, said people aged 16-24 did most online.

Health Care Fight Drives the News

For the second week in a row, health care reform topped the nation's news agenda, with the legislative battle increasingly portrayed in the press as a crucial test of Barack Obama's political skills and strengths. The issue accounted for 19% of the newshole from July 27-August 2, according to the Pew Research Center's Project for Excellence in Journalism. While that represents a moderate drop from the coverage level in PEJ's News Coverage Index previous week (when it was 25%), the health care debate, or at least its politics, was the overwhelmingly dominant story on the radio and cable talk shows. In that political polarized element of the media culture, the politics of health care last week accounted for 40% of the airtime studied. The emergence of health care as the hot topic on the ideological talk shows signals its status as the latest battleground in the young Obama presidency.