May 2010

America COMPETES Act Fails Again

House Democrats on Wednesday tried again -- and failed again -- to advance a $48-billion bill reauthorizing a slew of science and technology research programs.

Rep. Bart Gordon (D-TN) introduced the America Competes Act this morning using the House's suspension process in an attempt to steer the legislation clear of all amendments. But Democrats found themselves unable to clear the two-thirds hurdle on Wednesday, failing on a vote of 261-148 — even though they added both a pornography amendment and a massive funding cut to their bill to win GOP support. Wednesday's outcome "disappointed" Rep Gordon, he said shortly after the vote, though he added he remains "determined" to get the legislation back to the floor. House Democratic Leader Steny Hoyer (D-MD) later echoed that call, promising to bring the bill to the floor under a rule "soon." The GOP issued a statement of policy just before the vote that slammed Gordon's effort for failing to incorporate all six of their revisions, especially those that some members believe would reduce or eliminate "numerous new and unnecessary" programs.

Panel Examines Proposals To Tax Online Gambling

A key supporter of a law banning Internet gambling Wednesday found himself trying to defend the measure against those who questioned why the federal government shouldn't benefit by taxing an activity that many Americans are engaging in despite the prohibition.

During a House Ways and Means Committee hearing on the issue, Rep. Bob Goodlatte (R-VA), who helped author the 2006 law set to go in effect in June, defended the measure that bans Internet gambling and requires credit card firms to block payments to offshore gambling operators. House Financial Services Chairman Barney Frank (D-MA) has introduced legislation that would establish a regulatory and enforcement regime for online gambling and a companion measure, offered by Ways and Means Income Security and Family Support Subcommittee Chairman Jim McDermott (D-WA) would establish a tax regime. Chairman Frank said he will mark up his bill in July. Supporters of the bills say despite the 2006 law, Americans are still gambling online. This year, $12 billion has been deposited in offshore online gambling accounts, while offshore gambling operators have received about $5 billion a year in gross revenues.

Rockefeller bill would ban third-party online sales scams

Sens Jay Rockefeller (D-WV), Mark Pryor (D-AR), Bill Nelson (D-FL), Amy Klobuchar (D-MN), Claire McCaskill (D-MO) and George LeMieux (R-FL) have co-sponsored a bill would ban online sales companies from enrolling consumers in services without their consent.

Sen Rockefeller introduced the Restore Online Shoppers' Confidence Act following a year-long investigation by the Senate Commerce Committee. According to a committee aide, the aim of the bill is to protect consumers from deceptive Internet sales practices that charge for membership clubs and services they do not want and were unaware they purchased. The committee's investigation found that three companies in particular made use of these tactics: Affinion, Vertrue and Webloyalty. Together the firms were able to scam Americans out of more than one billion dollars. The bill would require companies to clearly disclose the terms of their offers to consumers and to obtain a customer's billing information directly from the customer. The bill would also ban online retailers from transferring a customer's billing information, including their credit and debit card numbers, to a third-party retailer.

Upton, Doyle Back Comcast-NBCU Deal

Former House Communications Subcommittee Chairman Fred Upton (R-MI) and Subcommittee member Mike Doyle (D-PA) have added their voices to those supporting the joint venture between Philadelphia-based Comcast and GE's NBCU.

"This transaction presents opportunities that will launch the communications, information, and technology industry into a new era of competition, creativity and innovation," they fairly gushed in a letter being circulated by fans of the deal. The pair wrote Federal Communications Commission Chairman Julius Genachowski saying that after the commission finishes its review, it will draw the same conclusion about the deal's public interest benefits. The letter praises the chairman for both the deliberate and expeditious review it has so far conducted. That was an effort to suggest the FCC has already been thorough and allowed for public input and does not need to further delay the proceedings as some others in Congress have requested. "[The deal] has already enjoyed unprecedented opportunities for public participation and scrutiny, they wrote.

Reps Seek Info On Google Wi-Fi Data Harvest

The co-chairmen of the House Privacy Caucus have stopped just short of calling for an investigation of Google over revelations that it gathered private information transmitted over Wi-Fi networks, though the clear undertone of their message is that one should be in the works, if not already underway.

In a letter to the Federal Trade Commission Chairman Jon Leibowitz, Reps. Ed Markey (D-MA) and Joe Barton (R-TX) pointed out that the company has admitted that it collected private e-mail and net surfing data, but said it has not clarified the nature or extent of the data it collected as part of its street view mapping initiative. In addition to just pictures, the legislators point out, the company recorded Wi-Fi signals and their accompanying identifying information. Reps Markey and Barton have asked for responses to a number of questions including whether the Federal Trade Commission is investigating the matter. If so, they also want to know what the FTC knows about how the data was stored and who had access to the data, whether Google's actions violate the public's "reasonable expectation" of privacy,if its actions be an unfair and deceptive practice that could harm consumers, and if Google's actions are illegal under federal law, whether the FTC has the authority to take action. They gave Google until June 2 to respond.

Flynn Joins FCC as Senior Counsel on Transactions

On May 19, Federal Communications Commission Chairman Julius Genachowski announced the appointment of John Flynn as Senior Counsel to the Chairman for Transactions. Mr. Flynn will head the working team that is conducting the review of the proposed Comcast/NBC Universal merger, under the guidance of the inter-bureau steering committee established by the Chairman shortly after the merger application was filed.

Flynn was most recently Executive Vice President, General Counsel and Corporate Secretary of ICO Global Communications, where he led teams that took the company public, secured the company's spectrum licenses, and won the largest jury verdict of 2008. He has also served as Vice President and Deputy General Counsel of Commerce One, Inc., a pioneering business-to-business software company, and General Counsel and Vice President of rStar Broadband Networks, Inc., an early provider of wireless broadband. Mr. Flynn was in private practice at WilmerHale and Munger, Tolles & Olson, where he focused primarily on communications and intellectual property law. He began his legal career as a law clerk to Judge Edward R. Becker on the U.S. Court of Appeals for the Third Circuit and then to Justices Byron R. White and John Paul Stevens on the U.S. Supreme Court. Mr. Flynn received his B.A., with distinction, and an M.A. from Stanford, and holds his J.D., magna cum laude, from the Georgetown University Law Center.

Former FCC Commissioner Glen Robinson Criticizes Future Of Media Initiative

Former Federal Communications Commission member Glen Robinson has taken aim at the FCC's Future of Media initiative, suggesting the FCC may be trying to force-feed its brand of news and information on the public.

In an essay for free market think tank, The Free State Foundation, Robinson points to the FCC's concluding question among the 42 it included in its public notice on the initiative: "What questions have we failed to ask that we should?" Robinson says the more pertinent question is "Why are you [the FCC] asking all these questions?" He points out that there are already open, official proceedings that [are] dealing with the issues of media's future--ownership rules, localism--without adding "redundant inquiries chasing the same question."

The FCC's disingenuous 'third way' on broadband

[Commentary] Despite his protestations to the contrary, Federal Communications Commission Chairman Julius Genachowski is about to reverse a 25-year bipartisan tradition of removing heavy-handed public-utility-type regulations over new technologies and services. Although Chairman Genachowski maintains that such regulatory interventions will be "modest," Genachowski's proposed approach is entirely disingenuous. Instead, for those of us who study this industry closely, it is readily apparent that the FCC now wants to regulate almost all aspects of the Internet.

[Lawrence Spiwak is president of the Phoenix Center for Advanced Legal & Economic Public Policy Studies]

Librarians weigh in on national ed-tech plan

School libraries are an important resource that should be leveraged as state and local leaders implement the recommendations in the National Education Technology Plan, the American Library Association (ALA) says.

In comments filed with the Department of Education (ED) on May 17, ALA said it applauds many of the plan's recommendations. The organization also stated its case for why school librarians should play a key role in state and local discussions on school technology use. "The school librarian, as an expert in new and emerging information and communication tools, intellectual property issues, ... new interpretations of fair use and use of Creative Commons licensing, ... and information literacies—now often referred to as "transliteracies"—is a critical team member," ALA said. "Including school librarians in the discussions of how to incorporate meaningful uses of technology into the education system will help ensure effective and sustainable decisions are made and implemented successfully." In its filing, ALA listed examples of how school libraries are "at the forefront of creative, meaningful, ethical, and innovative technology integration in many schools throughout the country."

Rural Telecom Associations Band Together for Unified Approach to Universal Service Reform

There is a big fight brewing in Washington - one whose outcome will have far reaching implications for rural broadband carriers.

The issue is the multi-billion dollar universal service fund, and the fight revolves around its reform. As a result, many of the leading trade associations representing the interests of rural telephone companies have banded together for a 'unified rural position.' The unified movement includes the National Exchange Carrier Association (NECA), the National Telecommunications Cooperative Association (NTCA), the Organization for the Promotion of Small Telephone Companies (OPASTCO), and the Western Telecommunications Alliance (WTA). That's a mouthful. These groups have agreed to respond to the upcoming National Broadband Plan's Notice of Proposed Rulemaking (NPRM) and Notice of Inquiry (NOI) seeking comment on the FCC's proposals regarding Cost Modeling and Universal Service Reform. They will advocate for:

Network design based on funding only 4 Meg in rural areas is shortsighted and creates a digital divide compared to 100 Meg in urban areas.
RLECs have made significant investments in multi-use, broadband capable networks which serve 37% of the national geography. Their continued ability to provide comparable telecommunications services to rural Americans is vital to our nation's economic development, national security and public health and safety.
These investments have been made possible due to a time-tested cost-recovery structure consisting of rate-of-return regulation, NECA pooling, intercarrier compensation and USF support.
The FCC should now be looking to recreate this success story with a broadband focus and not undermine or ignore what has worked to achieve affordable and comparable services for rural consumers as required by the Communications Act.

Benton

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