September 2009

Australian Government says Telstra has to break up

Telstra has been warned by the Australian government that it must separate its retail and wholesale businesses or its ability to expand its wireless broadband operations will be curtailed and competitors will gain greater access to its networks. Senator Stephen Conroy, communications minister, on Tuesday highlighted concerns about Telstra's market dominance. He said the group was one of the world's most integrated telecoms companies, with fixed-line copper, cable and mobile platforms. Conroy, who is overseeing plans for a public-private initiative to create an ambitious A$43bn ($37bn) nationwide broadband network (NBN), said other countries, including the UK and New Zealand, had overhauled their telecoms sectors to promote competition and Australia also needed reform. Lurking amid the bad news is a potential opportunity for Telstra to trade up, swapping a chunk of its existing fixed-line network for part of a faster, more modern, broadband network.

France passes harsh anti-P2P three-strikes law (again)

The French legislature has passed its controversial anti-P2P "three strikes and you're off the Internet" law for a second time, after a constitutional court found the first version unacceptable. Prepare for a crackdown.

FCC To Further Investigate Janet Jackson Super Bowl Reveal

The Federal Communications Commission has reasserted its power to regulate fleeting nudity and says it wants to further investigate "whether CBS' indecency violation [in the Janet Jackson/Justin Timberlake Super Bowl reveal] was willful." "The evidence in this case strongly suggests that CBS had access to video delay technology at the time of the 2004 Super Bowl," the commission said Tuesday in a brief to the Third Circuit Appeals Court in the Janet Jackson Super Bowl reveal case. The FCC asked the court to remand the decision back to the FCC so it could investigate further its assertion that the violation was "willful." The Third Circuit, in reversing the FCC's fine against the broadcast, said the evidence that delay technology was available at the time was "scant." The FCC disagrees and wants the chance to determine "whether CBS was reckless not to use video delay technology for this broadcast." The commission also reasserted that the reveal was off limits for broadcast TV between the hours of 6 a.m. and 10 p.m.

FCC Calls Comcast, Cablevision Assertion About Ending Ban On Exclusive Contracts 'Baseless'

The Federal Communications Commission has come out strongly in defense of retaining its program access rules. The FCC called "baseless" Cablevision and Comcast's assertion that a federal court's ruling vacating the commission's 30% cap on national subs should also doom the ban on exclusive contracts. The FCC told the D.C. U.S. Court of Appeals that the competition in the video marketplace "has not eliminated the need for the exclusivity prohibition," which the FCC under former Chairman Kevin Martin renewed for another five years--until 1012--back in 2007. It is the same court that three weeks ago threw out the FCC's 30% cap as unjustified.

SHVERA Draft Bill Ties Local-Into-Local Service To Short-Market Fix

The House Judiciary Committee has drafted the Satellite Home Viewer Digital Television Act which ties local-into-local service to all 210 DMAs to a short-market fix and does not create an opt-out of the compulsory license for stations with single-source licenses. A new draft of the House version of the bill reauthorizing satellite operators' compulsory license to deliver distant network signals still contains language that would allow Dish Network back into the distant-signal business in exchange for delivering local TV station signals in all 210 Nielsen markets. The new draft also no longer contains a provision that would allow stations to opt out of the compulsory license if they secured a single-source license for all the programming on their air.

3-D video coming to education

Thanks to new technology developments in projection and filming, students soon will be able to see the human body and other complex images, projected up close and in three dimensions. 3-D images floating out of screens, and kids in lightweight glasses with their jaws dropping open, might sound like science fiction -- but in less than a year, school across the country will be piloting 3-D projectors to give all students, and especially those who are visual learners, a chance to fully understand the curriculum.

What Consumers Want From Mobile Communications

Just as we need a strong interstate highway system and viable mass transit, we require accessible and affordable broadband so that businesses and consumers can reap the benefits of wireless technology. This report focused on a key part of broadband policy, i.e., how consumers feel about cell phones and other mobile devices. Consumer sentiments are crucial for telecommunications. The way in which cell phone users see their devices affects how they employ them and what future possibilities they are willing to entertain. Specifically, the report looks at what people like and don't like regarding their current communications experiences. West presents data on how many people use smart phones and download applications to their mobile devices, what applications they see as important, what frustrations they feel regarding telecommunications access, and what changes they would like to see in the future.

Among the specific findings of this analysis are the following key points:

1) the United States has the highest utilization rates of the four nations studied for smart phones and PDAs

2) American consumers have a strong desire to choose and control their own cell phone applications

3) in each of the four countries, being able to chat and make cheap international calls on cell phones are the most popular features

4) the most frequent reasons for not downloading new cell phone applications are lack of interest, cost, or not being able to do so on their cell phones

5) the most common frustrations with cell phones in the United States are the length of service contracts, roaming charges, cost of domestic calls, and lack of desired features

6) Americans believe that innovation is driven by new devices made by Apple, Nokia, and Motorola, and new Internet features pioneered by Google

7) The most popular new cell phone features are games (named by 61.6 percent of Americans), local directories to locate businesses and restaurants (52.9 percent), music (49.8 percent), and chat and instant messaging (39.8 percent)

8) nearly half of Americans (48.9 percent) say they are likely to switch from phone landlines to cell phones and 48.1 percent say when that they are taking a short trip, they are more likely to take their cell phone than a laptop computer

9) 69.3 percent of Americans aged 18 to 29 years are willing to switch from landlines to cell phones as are 53.9 percent of those aged 30 to 49 years. This demonstrates how receptive the "leading generation" of young people are to mobile communications

10) nearly half of Americans earning over $25,000 say they are willing to switch from landlines to cell phones

11) the desire to choose their own cell phone applications is strong across all age, income, and racial categories.

12) the groups most willing to pay more to control their cell phone applications are young people, African-Americans, and Asian-Americans.

Traditional Media's Revenge

[Commentary] Some suggest that much of the media business will be owned by the banks or will otherwise go through restructuring and a dramatic de-leveraging. Rich suggests that the necessary cleansing process has set the industry up for a rebound at the expense of Internet companies. with an appropriate capital structure, conventional media can take advantage of its brand, content and reach to dramatically expand into digital. Many of the existing Web 2.0 business models are even weaker, even in the long term, than those of traditional media. Online advertising prices are extremely low, particularly for non-name brand Internet properties. Most Internet companies are alive only because they are propped up by cheap venture capital financing that is in the process of drying up. On a straight up basis, a traditional media company with a strong brand and digital product should be able to out-compete all but the best Internet-only companies. In the past, traditional media companies were weak online out of fear of cannibalizing the offline revenue and cash flow that sustained their valuations and debt loads. They will soon have a great deal less to lose, likely under fresh ownership and management. It's time for traditional media to rise up and exact its revenge.

Let's debate real issues

[Commentary] In a more sensible world, media firestorms would be doused by the cold water of common sense. Fresh from successfully targeting then-White House green-jobs adviser Van Jones, right-wing talk show host Glenn Beck Twittered his followers to "find everything you can on Cass Sunstein (the regulatory czar), Mark Lloyd (Federal Communications Commission diversity czar) and Carol Browner (energy czar)." He later added White House science adviser John Holdren to the lengthening list of Obama administration staffers whom he calls "radical" or "revolutionary." Far from being bomb throwers, Browner was the longest-serving Environmental Protection Agency administrator, Sunstein is a professor at Harvard Law School, Holdren has taught at Harvard's Kennedy School of Government, Lloyd was an attorney at a leading communications law firm and Jones authored a best-selling book about how to create high-skill, high-wage jobs in environmentally friendly industries. Perhaps the most incendiary action that all five of these leading academics, attorneys and career public servants could take would be to burn their lengthy résumés. "Personnel is policy," Beck has declared to defend demonizing obscure officeholders. Well, policy really is policy. So let's debate health care, energy, economics and education, not some broadcaster's boogeymen.

Media Coverage of Obama Grows More Negative

What happened to the media's crush on President Obama? In the second 100 days of his administration, the majority of press coverage was bad, with the president's policy proposals receiving more criticism than praise from reporters. According to a study by researchers at George Mason and Chapman universities, 59 percent of press coverage was positive during Obama's first 100 days in office, but then it dipped to 43 percent from May through mid-August. Especially tough on Obama was Fox News. Researchers analyzed portions of "Special Report with Bret Baier" because it most resembled a network newscast and found that 25 percent of the show's coverage of the president was positive. That's actually a little higher than the 21 percent positive coverage Obama garnered from the Fox News Channel show during his first 100 days.