September 2009

Hellman nonprofit to boost local news coverage in San Francisco

San Francisco financier Warren Hellman will invest $5 million to develop a nonprofit journalism venture that will provide regional news coverage online and feed stories to media partners including public radio and TV outlet KQED and possibly the New York Times. The goal of the organization, which is expected to begin next year and create "more than dozens" of positions, is to ensure thorough coverage of local politics, social issues, education and other topics as the traditional media industry shrivels. "We've lost a lot," claimed Hellman, who specifically bemoaned dwindling reporting on subjects like the San Francisco Ballet, local business openings and vetting of political candidates. "We're going to be meeting an unmet need." But depending on its ultimate scale and success, some believe it could also threaten the remaining local news industry. That may be especially true if it establishes a partnership with the New York Times, which, like the Wall Street Journal, already announced plans to start a Bay Area edition to capitalize on declining regional news coverage.

Cablevision Seeks To Encrypt Broadcast Basic Channels

Cablevision Systems has filed a request with the Federal Communications Commission seeking an exemption to the agency's rules prohibiting the encryption of basic broadcast channels, arguing that scrambling the full digital TV lineup would cut costs and deter signal theft. According to the operator's filing, last year it performed more than 1 million truck rolls associated with physically activating or deactivating service using drops, steps it must take to prevent against unauthorized distribution because the programming is available "in the clear." "Encryption of broadcast basic would allow Cablevision to keep its plant 'hot,' to perform connections and disconnections remotely, and thereby eliminate many truck rolls and service appointments for new and discontinuing customers," Cablevision said. Cablevision asked for a waiver covering its New York City franchise areas.

Feds Weigh Cell Phone Ban For Bus, Truck Drivers

A highway safety organization is calling for restrictions on cell phones and texting by drivers of commercial vehicles. Members of Advocates for Highway Safety are asking the federal agency that regulates trucks and buses to give urgent attention to the matter. Next week at Transportation Secretary Ray LaHood's summit, he's expected to announce what the department calls "concrete actions" on issue.

US Broadband Coalition Releases Report on National Broadband Plan

A national broadband strategy must take steps to stimulate adoption and use of technology at a variety of levels, said a report by the U.S. Broadband Coalition, which presented the report at the Federal Communications Commission on Thursday. The coalition, a non-profit organization made up of more than 160 organizations that provide or depend on broadband services, came together to push for a national broadband plan in mid-2008. The release of the group's report is the culmination of 18 months of work that predates the passage of the American Reinvestment and Recovery Act when the coalition issued a "call to action" to organize and create a national broadband strategy. Bridging the "digital divide" is a major barrier to universal broadband within the U.S., the report said. Among the issues affecting adoption include a lack of relevance to many communities, difficulty accessing training and technology literacy programs, and a dearth of affordable options for access to computers. Further, people with disabilities "often experience barriers of physical accessibility" to high speed Internet as well as computing technology in general.

Looking at BTOP/BIP Applications

Endeavour is analyzing broadband stimulus funding applications. New Mexico, South Dakota, North Dakota, Montana, Wyoming, and Alaska all have fewer than 20 people per square mile and actual broadband performance that is demonstrably lower than the US average. Of these laggards, only Alaska makes the cut in the top 10 for total funding requests, but four out of the six are represented in the top 10 on a per capita basis - and a fifth, Montana, is ranked 11th. This one piece of news is encouraging, at least: Some of the money is likely to head to the markets with the greatest need. Unfortunately, digging deeper provides reason for concern. Three of the top 10 states ranked on funding requests per capita are in the top 10 for actual broadband performance: Rhode Island, the District of Columbia, and Maryland. These are all densely populated areas with meaningful broadband competition. Looking at specific high value applications gets even more interesting. Among the top 10 applications, four are satellite, three are unlikely to qualify, and the remaining two have a disturbing, "bridge to nowhere" feel. These are all very large projects and most don't seem to fit the model the architects of the broadband stimulus program had in mind.

Neutrality vital to health of Internet

[Commentary] In treating all data equally, Network Neutrality doesn't require service providers to give all users the same speed. People who want a faster connection can still be required to pay for it, just as broadband costs more than old-fashioned dial-up. It does, however, require that the data entering the pipe — or wireless connection — from the other end be treated equally. They cannot give preference to their own data or impede legal data from other sources, no matter what. That is how the Internet became the powerful engine of change it is today. And that is how the Internet of tomorrow will become a source of information and applications that can only be imagined right now.

Does Network Neutrality Stifle Innovation Or Boost It?

Hickins talks to Skydeck founder and CEO Jason Devitt about Network Neutrality. Skydeck provides services to help users organize their wireless communications and contacts.) Devitt is an "ardent supporter" of the view that incumbent carriers shouldn't be allowed to use their networks to discriminate against service or content providers. "Entrepreneurs should not require permission in order to set up a business or bring a new product to market," he said. What about the fact that the incumbents invested all that money on the pipes upon which he wants to piggy-back? It seems logical that if they built the network, they should be free to decide who gets to use it. Ah yes, except that they're called incumbents for a reason. They were handed the right to build the infrastructure (and tear up our streets) and enjoy the numerous benefits of incumbency, "with the understanding that the public reserves the right to impose certain conditions on them in the future in return for granting them this huge privilege." To the idea that rivals should simply go build their own networks, "the reality is you can't -- local communities won't allow 30 different companies to dig up streets... The compromise is that we grant a handful of companies the privilege to all this pipe, subject to other services being able to use the pipe as a shared facility." Sort of like other common carriers, like railroads, who get to charge for this service, and who are exempted from liability for criminal or fraudulent behavior (like piracy) committed on their networks by third parties. According to Devitt, Skydeck would have a much greater range of services to offer consumers were it not for the fact that carriers act as gatekeepers of the network. "With every new feature we're thinking about, every new product we're bringing to market, we have to think about what the implications are from that perspective," he lamented.

Could wireless network neutrality be a boon for the enterprise?

[Commentary] In light of the move toward openness, analysts have been talking a lot about how network providers can add value rather than being a dumb pipe. Most agree that operators should leverage the unique attributes of their networks, creating a personal broadband experience of sorts. Location is a big one. Operators can become a smart managed pipe. Some applications will require the most optimal network performance available, requiring content providers to make deals with network operators. For instance, an operator could provide more bandwidth for a short period of time if a content provider wants end users to view a video in real time or provide better Quality of Service for mission-critical enterprise applications. Open access will mean operators have to find new ways to participate in the revenue stream. To Luna, there's no doubt they will be courting the lucrative mobile enterprise space.

AT&T and the GOP: More than $400K donated to anti-Network Neutrality senators

Six Republican senators co-sponsoring an amendment to prevent the Federal Communications Commission from enacting new broadband rules have received more than $400,000 in campaign and political-action contributions from AT&T, the telecom giant that has criticized the new FCC rules, as well as other large telecoms and cable companies.

Campaign finance records compiled by the Center for Responsive Politics show that AT&T-related entities have donated some $67,300 to the campaign and political action committees of Sen Kay Bailey Hutchison, the Texas Republican and lead sponsor of the amendment to an unrelated Interior Department appropriations bill that would bar the FCC from spending money "to develop and implement new regulatory mandates."

Four of Hutchison's five co-sponsors have received hundreds of thousands of dollars from AT&T and Verizon, and a fifth worked for a DC lobbying firm -- before he was elected senator -- when it represented Comcast, the cable giant.

Over the course of his career, Sen Sam Brownback (R-Kansas) has received $220,914 from "telephone utilities," including some $83,130 from AT&T, his second-largest donor, in the form of employee and lobbyist donations to his campaign and political-action committees. Sprint Nextel has given Brownback $35,550 over the course of his career.

Two of the co-sponsors of the bill, Sen David Vitter (R-LA) and Sen John Ensign (R-NV), have been on the receiving end of AT&T's largesse. AT&T and predecessor BellSouth have donated $82,050 to Vitter's campaigns and political-action committees. And over the last four years, AT&T has donated some $61,250 to Ensign's campaign and political-action committees. Verizon-related entities donated $46,600 to Ensign during that period. During that time, AT&T has donated $63,750 to the campaign and political-action committees of Sen. Jim DeMint (R-SC). AT&T is DeMint's second-largest donor.

Sen John Thune (R-SD) has not received significant donations from the telecom industry since his 2006 defeat of Sen. Tom Daschle, then Senate majority leader Tom Daschle. But from 2003 to 2005, Sen Thune served as a senior policy adviser to the D.C. lobbying firm of Arent, Fox, when its client Comcast, the largest cable company in the U.S., paid some $40,000 in fees.

Broadband Truth-in-Labeling

The Open Technology Initiative of the New America Foundation is calling for Truth-in-Labeling by our nation's broadband operators. Drawn from similar useful disclosure requirements by lenders, these disclosure standards will give the marketplace a much-needed tool that clarifies and adds meaning to the terms and conditions of the service being offered. Broadband subscribers are often frustrated that the actual performance of their Internet access service regularly falls far below the advertised speeds. Consumers set their expectations based on phrases like "up to 16 Mbps," and are disappointed to learn that these quotes are worthless as assurances. Currently, there is no lawful requirement for ISPs to reveal the contents of the broadband services they are providing; customers might be harmed by the invalid or ambiguous languages. Internet Access Providers should disclose the important facts and details of the broadband offering before subscribers sign up. The disclosure should be meaningful, and failing to meet minimum standards should be treated as an important service outage (resulting in a refund or service credit to the consumer). Where there are choices between different products or providers, the disclosure should be made in a way that allows consumers to compare them. Providing clear, meaningful, comparable disclosures ultimately spurs competition between ISPs which encourages the future development of broadband technology.