September 2009

Google's Phone Service Likely to Draw Scrutiny

Google Inc.'s new phone management service is destined to draw scrutiny from the Federal Communications Commission as the agency struggles to reconcile rotary-phone-era rules for iPhones and BlackBerrys. Google is letting consumers test its Google Voice service, which allows people to link all of their phones to a common number and manage calls and messages through a single Web site. The service can also be used to send and receive phone calls and text messages. Google Voice, which uses both the Internet and traditional phone networks, is one of many new phone services -- including eBay Inc.'S Skype -- that raise questions about how to fit into the heavily regulated phone industry. FCC and industry insiders say regulators have been reluctant to subject newer phone services to traditional rules for fear of squelching an emerging technology. Google argues that its mostly free service isn't a traditional phone service and shouldn't be regulated like other carriers. Google provides free domestic calling, but charges per-minute fees for international calls, much like Skype. The company is pressing forward, letting some customers use its software and creating versions for BlackBerrys and smart phones running its Android operating system, even though the government has yet to determine how existing regulations apply to these new services.

Calls for probe of telecoms tie-up

Consumer groups are calling for an investigation into plans by France Telecom and Deutsche Telekom to merge their UK mobile businesses, because of fears that the tie-up could damage the quality of phone services. Lawyers are also warning that the proposed deal faces intense scrutiny by regulators because it would result in reduced competition.

EU probe 'costing Sun $100m a month'

Oracle chief executive Larry Ellison said late on Monday night that Sun Microsystems was losing $100m a month while European regulators scrutinize Oracle's acquisition plan for the hardware supplier. Antitrust regulators in Europe have taken a tougher line on competition issues, particularly in the technology industry. In this case they are examining whether Oracle's control over MySQL, an open-source Sun product, would stymie competition in the database software industry. Although Oracle also makes database software, Mr Ellison believes European regulators are misguided in their inquiries. "MySQL and Oracle do not compete at all," said Mr Ellison, adding that he would not sell MySQL.

Why We May Help Pay for Tribune to Unload the Cubs

[Commentary] The Chicago Cubs aren't going to win anything this year despite having one of baseball's largest payrolls. But their bankrupt owner, Sam Zell's Tribune Co., may be about to hit a home run -- at your expense. Zell, whose tax dodging is a frequent topic of Sloan's, is trying to unload the team in a deal that would divert almost $300 million from taxpayers to the creditors of Tribune, the nation's second-biggest newspaper company. The proposed Cubs deal, involving a "leveraged partnership" using lots of borrowed money, is so aggressive that a leading tax expert, Robert Willens expects the IRS to challenge it. The Ricketts family, founders of Ameritrade (now TD Ameritrade), would put $150 million of cash into a partnership that would also borrow up to $698 million. Tribune would put the Cubs, Wrigley Field and related assets into the partnership. Tribune would emerge with $740 million of cash and 5 percent of the partnership, while the Ricketts family would have 95 percent and operating control. Call me naive, but it sure seems to me that when you start with 100 percent and full control and end up with 5 percent, $740 million and no control, you've sold 95 percent. Zell's tax folks, however, will argue that Tribune is getting nontaxable proceeds from a leveraged partnership. They'll also argue that Tribune's guarantee of some of the partnership's borrowings makes it a true partner of the Rickettses. Hello? A debt guarantee from a bankrupt company?

ABC to cut commercial time for premieres of new TV series

With eight comedies and dramas premiering this fall -- seven of them in the next few weeks -- Walt Disney Co.'S ABC is making the unusual move of reducing the number of commercials in the premiere episodes of its new shows. Although that may seem an odd decision in a tough economy when networks are scrambling for every advertising dollar they can get, they are also fighting to hold on to every viewer. ABC hopes that fewer ads will prevent people from switching the channel to a rival network. The network is eliminating the first commercial break -- which typically occurs about eight minutes into an episode for comedies -- from new prime-time series, including "Cougar Town," "Modern Family" and "The Middle."

Filmmaking incentives losing glamour in cash-strapped states

More than 40 states offer tax breaks for movie and TV production, drawing business away from Southern California. But in the face of budget crises, several states are having second thoughts.

US Lags Behind in Health IT, Says Study

While some countries have made dramatic progress in advanced health IT systems, the United States has struggled to make progress and is far behind international best practices, according to a study released today by the Information Technology and Innovation Foundation.The study: Explaining International IT Application Leadership: Health IT, identifies elements contributing to success with health IT, including strong national-level leadership, the use of incentives and mandates, and the deployment of shared IT infrastructure in the health-care sector, and recommends strategies for policymakers to jumpstart progress on health IT adoption.

The Rights of Corporations

[Commentary] The question at the heart of one of the biggest Supreme Court cases this year is simple: What constitutional rights should corporations have? To us, as well as many legal scholars, former justices and, indeed, drafters of the Constitution, the answer is that their rights should be quite limited — far less than those of people. This Supreme Court, the John Roberts court, seems to be having trouble with that. It has been on a campaign to increase corporations' legal rights — based on the conviction of some conservative justices that businesses are, at least legally, not much different than people. Now the court is considering what should be a fairly narrow campaign finance case, involving whether Citizens United, a nonprofit corporation, had the right to air a slashing movie about Hillary Rodham Clinton during the Democratic primary season. There is a real danger that the case will expand corporations' rights in ways that would undermine the election system.

MacArthur "genius awards" 2009

The John D. and Catherine T. MacArthur Foundation will announce today 24 recipients of the $500,000 "genius awards." This year's MacArthur fellows range in age from 32 to 69 and are evenly divided between men and women. As in years past, most live on the East or West Coasts, but a photojournalist is based in Turkey and an infectious-disease physician in Sudan. All will receive $100,000 a year for five years, no strings attached.

Preserving a Free and Open Internet: A Platform for Innovation, Opportunity, and Prosperity

Federal Communications Commission Chairman Julius Genachowski outlined the actions he believes the FCC must take to preserve the free and open Internet.

The Commission previously embraced four open Internet principles affirming that consumers must be able to access the lawful Internet content, applications, and services of their choice, and attach non-harmful devices to the network. These four principles guide the FCC's existing case-by-case enforcement of communications law. In a speech Monday at The Brookings Institution, Chairman Genachowski proposed the addition of two new principles.

The first would prevent Internet access providers from discriminating against particular Internet content or applications, while allowing for reasonable network management.

The second principle would ensure that Internet access providers are transparent about the network management practices they implement. The Chairman also proposed clarifying that all six principles apply to all platforms that access the Internet.

Chairman Genachowski will seek to begin the process of codifying the Commission's existing four open Internet principles, along with the two additional principles, through a Notice of Proposed Rulemaking (NPRM) at the October meeting. The NPRM will ask for input and feedback on the proposed rules and their application, such as how to determine whether network management practices are reasonable, what information broadband providers should disclose about their network management practices and how the rules apply to differing platforms, including mobile Internet access services.

Benton

Search