June 8, 2010 (Comcast hearing recap)
BENTON'S COMMUNICATIONS-RELATED HEADLINES for TUESDAY, JUNE 8, 2010
Today's honorary subscriber: the Oakton Elementary School (Evanston, IL) Class of 2010.
The Future of Media and Health 2.0 on today's agenda http://bit.ly/ddxGDU
OWNERSHIP
Comcast-Universal merger attacked
Comcast, NBCU Commit to Adding Independent Nets with Minority Backers
New breed of newspaper owners writing a different story
Tribune's reorganization plan seen headed for creditors vote
INTERNET/BROADBAND
National broadband: De-bottlenecking or doubling down?
FCC Should Abandon Third Way And Support Congressional Reform
Hawaii Announces New Broadband Mapping Partners
Genachowski interview
Final Stages of Domain Name System Security Extensions Implementation
HEALTH
Doctors and Hospitals Say Goals on Computerized Records Are Unrealistic
HHS tailors EHRs for children
JOURNALISM
FTC Corrects Misinformation on Journalism Initiative
FTC Draft Plan to "Save Journalism" Drawing Scrutiny; Raising Concern
The FTC Confuses Newspapers With Journalism as it Seeks New Media Tax
CYBERWAR
Military Taps Social Networking Skills
PUBLIC SAFETY/EMERGENCY COMMUNICATIONS
Ridge: New FCC plan will endanger first responders
911 Technology Problems Plague First Line of Response
WIRELESS
Mobile groups lose EU roaming charge case
Dear AT&T: Soon We'll All Be Data Hogs
TELECOM
Telecom Supply Strained
PRIVACY
Consumer privacy groups petition Congress
Connecticut investigating Google's use of private data
STORIES FROM ABROAD
These headlines presented in partnership with:
Chinese Government Spells Out Internet Restrictions After Google's Exit
75% of New Zealanders to get 100Mbps fiber by 2020
Australian Police Probe Google's Street View Service
Canada May Relax Foreign-Investor Limits on BCE, Rogers
MORE ONLINE
White House is directing agencies to cut budgets
At the White House, getting in touch with the inner circle's inner iPads
The Battle Over the Next-gen Open Smart Grid
Why We Need to Transform Television
OWNERSHIP
COMCAST-UNIVERSAL MERGER ATTACKED
[SOURCE: Los Angeles Times, AUTHOR: Joe Flint]
One critic likened cable TV giant Comcast to a plantation, while another pointed to the BP oil spill disaster as what could happen when companies escape tough regulatory scrutiny. Then an influential congresswoman dropped a bomb by hinting that Comcast had tried to buy her support for one of the biggest media deals in history. Those were some of criticisms and charges that flew during a field hearing held Monday by the House Judiciary Committee at the California Science Center in South Los Angeles to review the proposed Comcast-NBC Universal merger. The hearing was convened by committee Chairman John Conyers (D-MI) but largely run by Rep Maxine Waters (D-CA). The session, attended by more than 100 people, lasted almost four hours and was frequently interrupted by applause, cheers and groans from the audience. The hearing was called to examine programming and workplace diversity issues arising from the merger, which would bring under one roof the nation's largest cable operator and a TV powerhouse that includes the NBC TV network, Universal Pictures movie studio and cable channels USA, Bravo and MSNBC. Rep Waters said opponents of the merger fear being blacklisted if they speak their minds: "It is somewhat troublesome that many independent and minority programmers, producers, writers and directors have been afraid to voice their concerns for fear of blacklisting or other forms of retaliation."
benton.org/node/36665 | Los Angeles Times | Hollywood Reporter | TechDailyDose | Broadcasting&Cable
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NEW COMCAST COMMITMENTS
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
On June 7, Comcast and NBC Universal announced a series of new and/or expanded diversity commitments:
1) Comcast will add at least three independent cable nets with "substantial [minority] ownership interest" over the next three years.
2) The combined company will establish four external advisory councils (together referred to as the Joint Council), one each for representatives of the African American, Latino, Asian Pacific Islander communities, and another for "other diverse communities." The advisory councils will meet at least twice a year with Comcast executives, one of those meetings to include the chairman and CEO.
3) The combined company will spend at least $7 million more on advertising in minority-owned media next year.
4) On the workforce diversity front, Comcast and NBCU have pledged to increase director-level representation of minorities' create minority focus groups to identify potential employees, create a boot-camp program for mid-level VP candidates with at least 80% of those diverse candidates, use search firms with a track record of identifying diverse candidates.
5) NBC News will add three paid internships to the six it now gives to members of minority journalist organizations, and will commit to increase the diversity of executives in TV and film development, production and marketing.
6) The companies also pledged to increase their spending with minority-controlled suppliers with a nationwide goal of having a percentage of those suppliers equal to the percentage of minority-owned businesses in the communities the companies serve.
7) The Peacock will also put its money where its beak is. Comcast has relationships with a number of minority-owned financial institutions. NBCU will be a depositor "where practicable."
8) On the programming front, Comcast said it is committed to improving its track record in bringing diverse programming to its subs, not that it thinks its current track record is wanting. It has already launched a Black cinema On Demand VOD channel, plans this fall to launch an Asian version, and said Monday that within a year of the deal's closing will launch a Hispanic version.
9) NBCU said it will double (to four) the number of networking events for diverse directors and writers with senior NBCU executives. In addition to continuing to fund diversity writer positions for the next three years on each of the scripted series on the NBC network and for its late-night programs, it will expand that program to a position on each scripted series on a NBCU cable net.
10) The companies will also increase their contributions to diverse communities, pledging to up their philanthropy to minority-led or supporting institutions by 10% per years for the next three years.
benton.org/node/36638 | Broadcasting&Cable
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HEDGE FUNDS OWN NEWSPAPERS
[SOURCE: Chicago Tribune, AUTHOR: Michael Oneal]
The newspaper industry is starting to meet its new bosses -- the hedge funds and banks that are moving in as rich family owners and button-down executives move out. While the objectives of these new owners remain unclear, insiders say the transition period promises more upheaval at newspapers just as they begin to emerge from bankruptcy. Over the past year, stealthy distressed-debt hedge funds like Angelo, Gordon & Co., Alden Global Capital and Oaktree Capital Management have taken major positions in bankrupt newspaper companies such as Tribune Co., owner of the Chicago Tribune, and Philadelphia Newspapers Inc., owner of the Philadelphia Inquirer. Their basic strategy: Quietly buy up as much cheap, delinquent debt as possible and then fight it out in bankruptcy court for a lucrative settlement that transforms the debt into a large share of company stock. Experts say it is unlikely that any single fund has amassed enough of a stake to take outright control of one or more publishers. And they are hardly acting in concert. But alliances of like-minded funds and big banks like JPMorgan Chase, which have also received significant chunks of equity through restructurings, could give nontraditional investors like Angelo Gordon and Alden unusual clout over a wide swath of the newspaper industry.
benton.org/node/36650 | Chicago Tribune
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TRIBUNE REORG INCHES FORWARD
[SOURCE: Reuters, AUTHOR: ]
The Tribune Company modified the description of its reorganization plan on June 4. Delaware Bankruptcy Judge Kevin Carey directed Tribune to change the description of how it treats holders of bridge loans. Under the proposed plan, the bridge loan lenders would receive a recovery between zero and 4.6 percent of their $1.6 billion in claims, and they felt the disclosure did not accurately describe their treatment. Tribune plans to turn the company over to senior lenders led by JPMorgan Chase. Those lenders funded the take over of the company by real estate developer Sam Zell in 2007 in a $8.2 billion leveraged buyout. Tribune filed for bankruptcy about a year later. The company also plans to set aside about 7 percent of its post-bankruptcy equity for bondholders led by Centerbridge Capital Advisors to satisfy their legal claims against the management and leveraged buyout lenders. An examiner is expected to report by July 12 on potential legal claims stemming from the leveraged buyout, which could change the case if it is determined valuable claims could be brought against the lenders, management and others.
benton.org/node/36656 | Reuters
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INTERNET/BROADBAND
NATIONAL BROADBAND
[SOURCE: Connected Planet, AUTHOR: Alex Liu]
It's front-page news every day: the private sector profit motive wrestling with political will and choices. Is National broadband -- to the tune of 100 Mb/s download speeds for almost everyone -- a natural end point for the country's future competitive infrastructure (so just be patient) or is it a basic citizen's right that is being inefficiently withheld due to telco incompetence and greed (so let's implement Big Bang now)? In the end, we would all agree that it's in the public interest to improve national competitiveness, make e-health care and e-education a broader reality, close the digital divides related to poverty as well as differential coverage economics, and thereby release all the flow-through benefits for a true 21st century economy. In the end, leveraging a high-profile national broadband agenda to de-bottleneck the global infrastructure for communications is clearly a worthy goal, but doubling down on this public policy objective without a proper "strategy" may lead to unintended uncertainty and fiscal waste. Happily, there are examples of how private-public collaboration in this area can effect real change with less partisan rancor (France comes to mind). The national stakes here are too high not to focus on problem-solving versus pure posturing.
benton.org/node/36641 | Connected Planet
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FCC SHOULD SUPPORT CONGRESSIONAL REFORM
[SOURCE: App-Rising.com, AUTHOR: Geoff Daily]
[Commentary] The Federal Communications Commission should abandon its push for a "third way" on telecom regulation and instead get behind the push for a Congressional update of the Communications Act. It is a mistake for the FCC to try and blaze its own trail on these issues. I say that for multiple reasons. The first is simple: what good is a "third way" if whatever the FCC comes up with as a compromise is overruled or made irrelevant by Congressional action? That could easily happen in big and small ways, meaning that all the work the FCC puts into this may be for naught. The second is a related thought: the FCC should wait until it has its new Congressional authority before trying to re-regulate broadband. At this point we have no idea what the FCC's new powers will be, so it seems unwise to embark on such a fundamental reexamining of how we regulate broadband with this much uncertainty. The third is to acknowledge the basic reality that Congress is higher on the totem pole than the FCC. There's really nothing the FCC can do that can't be taken away by Congressional action, so it seems like it makes sense to try and work with Congress rather than against them. Which brings me to my main point. The most fundamental truth of these debates about re-regulating broadband is that whatever is decided and however these decisions are made, it's going to be a contentious process. There are no such things as making easy, no-nonsense tweaks to broadband regulation. Instead, what's going to happen is that there will be a massive PR and lobbying fight pitting those who wish to maintain the status quo vs. those who want to see revolutionary changes.
benton.org/node/36640 | App-Rising.com
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HAWAII'S NEW MAPPING PARTNERS
[SOURCE: BroadbandBreakfast.com, AUTHOR: ]
Early last year, Hawaii's Department of Commerce and Consumer Affairs was given a $1.9 million grant for its mapping initiative. Rather than conduct all of the mapping internally, the department has chosen to partner with the New America Foundation, the University of Hawaii and BroadMap. In a recent release announcing their partnership BroadMap CEO Daniel Perrone said: "We respect the DCCA's efforts to increase broadband services to all communities across the State of Hawaii and are excited to be part of this mission. Our work compiling multiple layers of real-time location and broadband serviceability data allows us to provide a highly accurate and complementary GIS solution to current state efforts."
benton.org/node/36639 | BroadbandBreakfast.com
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DOMAIN NAME SYSTEM SECURITY
[SOURCE: National Telecommunications and Information Administration]
The Department of Commerce's National Telecommunications and Information Administration (NTIA) announces the availability of the Domain Name System Security Extensions (DNSSEC) testing and evaluation report and NTIA's intent to proceed with the final stages of DNSSEC deployment in the authoritative root zone. As part of this notice, NTIA is providing a public review and comment period on the testing and evaluation report and the commencement of the final stage of the DNSSEC deployment before taking any action. Comments must be submitted by June 21, 2010.
benton.org/node/36655 | National Telecommunications and Information Administration | ICANN | VeriSign report
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HEALTH
ELECTRONIC HEALTH RECORDS GOALS UNREALISTIC?
[SOURCE: New York Times, AUTHOR: Robert Pear]
In February 2009, as part of legislation to revive the economy, Congress provided tens of billions of dollars to help doctors and hospitals buy equipment to computerize patients' medical records. But the eligibility criteria proposed by the Obama administration are so strict and so ambitious that hardly any doctors or hospitals can meet them, not even the most technologically advanced providers like Kaiser Permanente and Intermountain Healthcare. Doctors and hospital executives, who have expressed their frustration in meetings with White House and Medicare officials, said the issue offered a cautionary tale of what could happen when good intentions meet the reality of America's fragmented health care system. The goal of the law is to provide financial incentives, through Medicare and Medicaid, to encourage doctors and hospitals to adopt and use electronic health records. When the bill was passed, the Congressional Budget Office estimated that the incentive payments would total $34 billion. It is no surprise that tiny hospitals in the Midwest and doctors practicing by themselves would grumble about the White House proposals. But elite institutions have similar concerns. Among those expressing deep reservations about the proposals are pioneers in the use of health information technology like Kaiser, Intermountain, the Mayo Clinic and Partners HealthCare System in Boston, which includes Brigham and Women's Hospital and Massachusetts General Hospital.
benton.org/node/36664 | New York Times
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HHS TAILORS EHRs FOR CHILDREN
[SOURCE: FederalComputerWeek, AUTHOR: Alice Lipowicz]
Electronic health record (EHR) systems should be enhanced to deal with the needs of people such as children and victims of domestic violence, officials said June 4 at a meeting of a Health and Human Services Department advisory workgroup. For pediatrics patients, HHS is developing a model EHR with features tailored for their health needs, speakers said. For example, a pediatric record system is likely to have growth charts and vaccination charts. The Agency for Healthcare Research and Quality (AHRQ) along with the Centers for Medicare and Medicaid Services are creating the pediatric record template for children enrolled in Medicaid or in the Children's Health Insurance Program (CHIP), Dr. Carolyn Clancy, AHRQ's director, said at a meeting of the HHS Health IT Policy Committee's meaningful use workgroup. The workgroup is advising the HHS National Coordinator for Health IT on distributing $17 billion in economic stimulus funds to providers who buy and "meaningfully use" EHR systems.
benton.org/node/36652 | FederalComputerWeek
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JOURNALISM
FTC CORRECTS MISINFORMATION
[SOURCE: Federal Trade Commission, AUTHOR: Press release]
On May 24, the Federal Trade Commission released a staff discussion draft in advance of the next workshop on the future of journalism. The discussion draft collects proposals and public comments articulated during previous panel conversations and in reports and articles about the future of journalism. The staff discussion draft states:
"[T]hrough this document, we seek to prompt discussion of whether to recommend policy changes to support the ongoing reinvention of journalism, and, if so, which specific proposals appear most useful, feasible, platform-neutral, resistant to bias, and unlikely to cause unintended consequences in addressing emerging gaps in news coverage."
The FTC has not endorsed the idea of making any policy recommendation or recommended any of the proposals in the discussion draft. Recent press reports have erroneously stated that the FTC is supporting and proposing some of the public comments (for example, taxes on electronic devices, favoring one medium over another).
benton.org/node/36645 | Federal Trade Commission
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CYBERWAR
MILITARY TAPS SOCIAL NETWORKING SKILLS
[SOURCE: New York Times, AUTHOR: Christopher Drew]
The Central Intelligence Agency and the military use drones to wage long-distance war against insurgents, with pilots in the United States pressing the missile-firing buttons. But as commanders in Afghanistan mass drones and U-2 spy planes over the hottest areas, the networking technology is expanding a homefront that is increasingly relevant to day-to-day warfare. And the mechanics are simple in this age of satellite relays. Besides viewing video feeds, the analysts scan still images and enemy conversations. As they log the information into chatrooms, the analysts carry on a running dialogue with drone crews and commanders and intelligence specialists in the field, who receive the information on computers and then radio the most urgent bits to troops on patrol. Marine intelligence officers say that during the Marja offensive in February, the analysts managed to stay a step ahead of the advance, sending alerts about 300 or so possible roadside bombs.
benton.org/node/36663 | New York Times
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PUBLIC SAFETY/EMERGENCY COMMUNICATIONS
RIDGE LETTER TO FCC
[SOURCE: The Hill, AUTHOR: Sara Jerome]
In a letter to Federal Communications Chairman (FCC) Julius Genachowski, former Homeland Security Secretary Tom Ridge and two deputies said the FCC's proposal to auction off a valuable block of spectrum to commercial bidders "seriously shortchanges the first responder community and simply will not give these vital public servants adequate spectrum to do their jobs when it matters most, during times of crisis."
benton.org/node/36657 | Hill, The
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WIRELESS
EU ROAMING CHARGES
[SOURCE: Financial Times, AUTHOR: Stanley Pignal]
Leading mobile phone operators have lost their bid to overturn a European Union cap on the roaming fees they can charge customers when they travel overseas. The European Court of Justice in Luxembourg said the EU had the right to impose price caps on roaming charges in the interest of promoting the bloc's internal market. France Telecom's Orange, Deutsche Telekom, Telefónica's O2 and Vodafone had challenged the measures before UK courts, who passed on key parts of the case to the ECJ. Their challenge aimed to overturn a price-capping regime that came into force in 2007, in spite of extensive lobbying from telecoms groups. A favorable decision from the court might have reopened the lucrative roaming market, which was worth €8.7bn at the time the regulation came into force, according to Brussels.
benton.org/node/36659 | Financial Times
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WE ALL DATA HOGS SOON
[SOURCE: PCWorld, AUTHOR: Jeff Bertolucci]
By now you've read all about the pros and cons of AT&T's new tiered data plans. The demise of the wireless carrier's all-you-can-eat unlimited offering is bad news for the small percentage of bandwidth hogs who, with their piggish downloading and streaming, are slowing Ma Bell's robust network to a crawl. OK, laugh -- but just a little. Because it's true, even on wired broadband networks, that a tiny portion of subscribers gobble up most of the bandwidth. But with the expected surge in video applications for wireless devices, we'll all be data hogs soon enough. First, consider the 3G iPad, an entertainment device tailored for video-viewing (among other things). Then there's the likely addition of a video camera to the fourth-generation iPhone, a feature that opens the door to a new generation of smartphone video apps. And don't forget that Apple isn't the only player in this market. Additional tablets and dual-camera handsets will undoubtedly join the AT&T network too, making most subscribers pretty piggish in the carrier's eyes.
benton.org/node/36649 | PC World
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TELECOM
TELECOM SUPPLY STRAINED
[SOURCE: Wall Street Journal, AUTHOR: Dana Mattioli]
A shortage of electronics parts is curbing sales at telecommunications-equipment makers, forcing them to scramble for supplies as manufacturers that slashed production fail to restore capacity fast enough. Telecom-gear firms say they are hunting for new suppliers, paying higher prices for components and rushing deliveries by plane. Parts suppliers are hiring more workers, deferring plans to shut factories and rationing parts to their best customers -- but demand still outstrips supply. The problem stems from the recession, when electronics-component manufacturers scaled back production. That created fewer parts to sell to companies, such as Alcatel-Lucent SA and Telefon AB L.M. Ericsson, that make network equipment for wireless carriers. In recent months, demand for that equipment has accelerated, as wireless carriers need it to increase their network capacity. The proliferation of smartphones is taxing wireless carriers' existing networks, and the shortages are mainly of basic parts used in equipment to build and upgrade network capacity.
benton.org/node/36662 | Wall Street Journal
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PRIVACY
PRIVACY BILL
[SOURCE: ModernHealthcare.com, AUTHOR: Maureen McKinney]
A newly released draft of a consumer privacy bill has prompted privacy-advocacy groups to call for the inclusion of more-stringent requirements that they view as necessary for adequate consumer-data protection. In a June 4 letter to Reps. Rick Boucher (D-VA) and Cliff Stearns (R-FL), 10 groups, including the Center for Digital Democracy, the Privacy Rights Clearinghouse, Consumer Watchdog and the World Privacy Forum, responded in detail to a draft version of the bill, which is under consideration by the House Subcommittee on Communications, Technology and the Internet. The letter acknowledged that the bill was a step in the right direction toward ensuring data security but said it must be "considerably revised to provide the protection that consumers truly need and garner the support of consumer and privacy groups." Specifically, the groups called for the term "sensitive information" to be expanded to include more types of health-related information. They also urged the committee to require "opt-in" procedures for the collection and use of data. Additionally, they said the bill should incorporate the Federal Trade Commission's Fair Information Practice Principles.
benton.org/node/36651 | ModernHealthcare.com
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STORIES FROM ABROAD
These headlines presented in partnership with:
CHINA'S INTERNET RESTRICTIONS
[SOURCE: Bloomberg, AUTHOR: Michael Forsythe]
The Chinese government announced topics it censors on the Internet, including material which may damage "state honor and interests" or "subverts state power." No organization can "produce, duplicate, announce or disseminate information" on topics which may be "against the cardinal principles set forth in the constitution," or which may "instigate ethnic hatred," jeopardize "state religious policy," or spread "superstitious ideas," China's State Council Information Office said in a 31-page policy paper on the Internet issued June 7. Material which can disrupt "social order and stability," spreads "obscenity, pornography, gambling, violence, brutality and terror" or abets a crime, "humiliates or slanders others" or infringes on people's "lawful rights" is also banned, according to the report. "Other content forbidden by laws and administrative regulations" is also prohibited online, according to the document. "With their right to freedom of speech on the Internet protected by the law," Chinese citizens "can voice their opinions in various ways on the Internet," it said.
benton.org/node/36658 | Bloomberg
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NEW ZEALAND FIBER PLAN
[SOURCE: ars technica, AUTHOR: Nate Anderson]
Taking a page from the Australian broadband playbook, New Zealand has decided not to sit around while incumbent DSL operators milk the withered dugs of their cash cow until it keels over from old age. Instead, the Kiwis have established a government-owned corporation to invest NZ$1.5 billion for open-access fiber to the home. By 2020, 75 percent of residents should have, at a bare minimum, 100Mbps down/50 Mbps up with a choice of providers. Crown Fibre Holdings Limited is the company, and it's wholly owned by the government—for now—and the company's mission couldn't be any clearer. Two of its six guiding principles include "focusing on building new infrastructure, and not unduly preserving the 'legacy assets' of the past" and "avoiding 'lining the pockets' of existing broadband network providers." The New Zealand government set up the company late last year, but the government won't install and own the network by itself. Instead, Crown Fibre will partner with local companies across New Zealand to roll out fiber. Those companies will have to invest their own money as well, but in return they become part of the national dark fiber open-access system envisioned by Crown Fibre. Here's how it works: every fiber builder who takes government money needs to lay basic, unmanaged dark fiber that any ISP can light in order to offer service to a particular home or business. The fiber companies can also run some particular Layer 2 services, but they can't offer full-blown Internet access directly. Instead, they are allowed to sell Internet access to their own retail unit so long as it operates like a separate business, and all other ISPs must be offered access at the same rate.
benton.org/node/36654 | Ars Technica
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AUSTRALIAN POLICE PROBE GOOGLE'S STREET VIEW SERVICE
[SOURCE: Bloomberg, AUTHOR: Marion Rae, Mark Lee ]
Australian police are probing Google Inc.'s Street View mapping service for possible breaches of data-security laws, two weeks after the nation's communications minister criticized the company's methods. Attorney-General Robert McClelland yesterday said complaints by members of the public raised issues that "required a police investigation." Google last month halted operation of Street View vehicles, which gather images by driving through neighborhoods in a truck with a camera and equipment for locating wireless data hubs.
benton.org/node/36648 | Bloomberg
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CANADIAN OWNERSHIP RESTRICTIONS
[SOURCE: Bloomberg, AUTHOR: Alexandre Deslongchamps, Hugo Miller ]
On June 7, the Canadian government said that the country's large telephone companies such as Bell Canada and Rogers Communications may be covered by new rules that will make it easier for foreigners to invest in Canada. "Having it as closed as it is now is starting to impede the ability of the players to compete, to innovate, to sustain the capital investment that is required for a modern, digital economy," Industry Minister Tony Clement said. Clement said he plans to introduce legislation to liberalize Canada's C$40 billion ($37.9 billion) telecommunications industry. That would move the country a step closer to allowing foreign investors to acquire companies like BCE, the country's largest phone company with a market value of about C$24 billion, and the biggest wireless carrier, Rogers. Clement said that he will offer three options for reducing restrictions on foreign ownership. BCE, Rogers and other large phone companies may have to change their corporate structures to tap foreign capital, because the government doesn't plan to change broadcasting rules that prevent foreign control of a Canadian company, Clement said.
benton.org/node/36647 | Bloomberg
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