September 2010

China demands ID from all buyers of mobile phone numbers

China began requiring identification from anyone buying a new mobile phone number today in what it says is a bid to stamp out junk messages. But critics say the move gives the government a new tool for monitoring its citizens. The rules apply to everyone, including foreigners visiting the country for a short stay. The regulation is the latest campaign by the government to curb spam, pornographic messages and fraud on cellular phones. The ID requirement is raising new privacy concerns and is likely to upset some customers unwilling to give out personal information for fear it will be.

Biden touts stimulus law's IT benefits

Recovery Act investments in health information technology are making headway in improving patient care and reducing medical errors, according to a new White House report.

The report, unveiled by Vice President Joe Biden in Washington Tuesday, details the effects of the American Recovery and Reinvestment Act of 2009, which funneled more than $100 billion to various programs, including $20 billion in healthcare information technology. "Approximately $2 billion is being spent largely to support ready hospitals, providers, states and other parties to adopt health IT," the report states. "The remaining funds will be used to incentivize physicians and providers to adopt health IT in 2011 and beyond."

Expanding adoption of broadband, which received a $6.9 billion boost under the stimulus law, will enable the adoption of electronic health-record systems, e-prescribing, and e-care, the report stated. The Obama administration projects that e-prescribing technology alone will help prevent 10 million outpatient medication errors by 2013. Broadband also allows for round-the-clock remote monitoring via wireless aids such as digital cameras and text messaging and telemonitoring services. The Veterans Affairs Department, for example, "has dramatically decreased unnecessary hospitalizations through a wide-ranging effort to help veterans manage chronic conditions at home" by using remote monitoring tools.

Estimated Impact of the Stimulus Package on Employment and Economic Output

When the American Recovery and Reinvestment Act of 2009 (ARRA), also known as the economic stimulus package, was being considered, CBO and the staff of the Joint Committee on Taxation estimated that it would increase budget deficits by $787 billion between fiscal years 2009 and 2019. CBO now estimates that the total impact over the 2009-2019 period will amount to $814 billion. Close to half of that impact is estimated to occur in fiscal year 2010, and about 70 percent of ARRA's budgetary impact will have been realized by the close of that fiscal year.

CBO estimates that ARRA's policies:
Raised the level of real (inflation-adjusted) gross domestic product (GDP) by between 1.7 percent and 4.5 percent,
Lowered the unemployment rate by between 0.7 percentage points and 1.8 percentage points,
Increased the number of people employed by between 1.4 million and 3.3 million, and
Increased the number of full-time-equivalent (FTE) jobs by 2.0 million to 4.8 million compared with what those amounts would have been otherwise.

  • Raised the level of real (inflation-adjusted) gross domestic product (GDP) by between 1.7 percent and 4.5 percent,
  • Lowered the unemployment rate by between 0.7 percentage points and 1.8 percentage points,
  • Increased the number of people employed by between 1.4 million and 3.3 million, and
  • Increased the number of full-time-equivalent (FTE) jobs by 2.0 million to 4.8 million compared with what those amounts would have been otherwise.

FCC Chairman: More People Need to Make Broadband National Priority

On August 24, Federal Communications Commission Chairman Julius Genachowski said that some people still aren't treating broadband as a national priority, and pointed to the recent decision on the FCC's annual broadband access report as an example. He conceded that participants at a broadband summit would be expected to agree that broadband is a priority, but said: "I do want you to know that is not the uniform opinion in Washington or in our state governments."

Chairman Genachowski said that in contrast to past broadband reports, in which the FCC looked at broadband and said, "yes, everything's fine," he came to a far different conclusion after looking at the most recent report with his staff. "I said 'this is crazy.' We see how other countries are moving, we see the challenges, the answer is 'No,'" Chairman Genachowski said, adding that one would have thought that conclusion would have been "unanimous and without criticism....That was a 3-2 vote." The conclusion was criticized by many in industry as well as the dissenting commissioners, who said they were troubled by the failing grade. "[P]people in this room understand about the importance of broadband to small businesses, to our economy, to healthcare and public safety...[but] we're in the early innings in terms of having it really become a national priority," the chairman said, adding that more people have to understand that standing still is moving backwards.

Powell: Network Neutrality compromise possible

Former Federal Communications Commission Chairman Michael Powell said that there is room for a compromise on the divisive issue of network neutrality if the FCC steps up.

"I do think at the end of the day there is a compromise to be had, and if the FCC would take control of the issue and the sides, they can resolve this issue in an appropriate way," he said. According to Powell, the "politicized" nature of network neutrality has made it a tough issue to tackle, in part because the left has taken such an interest in the topic. "I think this issue became highly politicized and almost religious during the campaign," Powell said who was an advisor to Sen John McCain's campaign for president.

"The Silicon Valley Netroots community, a very powerful community and a very important constituency to this Administration is strongly, almost religiously, committed to this issue in a very forward-leaning way," he said. That force has managed to sway communications policy, according to Powell. "I think that provides a lot of power and impetus to keep this issue moving and to push a more extreme version of net neutrality," he said.

"I think there are reasons to be concerned that the fundamentals of the Internet — that is, its open, end-to-end nature — will be preserved," he said in support of a limited government role. There is a consensus among carriers and Web companies that some government role would help, according to Powell.

Stimulus Fuels Innovative Digital Divide Initiative in Washington, DC

Broadband adoption in Washington, DC toes the line -- not party lines, but rather the lines of the district's eight wards. In well-to-do neighborhoods located in the northwest, more than 90 percent of residents are connected to high-speed Internet access, according to a 2009 study by the district's technology office. But to the southeast, in poorer communities, only 36 to 40 percent of people can access broadband. There's literally a digital divide that splits Washington, DC's geography.

Bryan Sivak, who has been Washington, DC's chief technology officer since last October, leads a coordinated effort to close that disparity -- an effort that will be one of his office's main missions, he said. "Some might say I'm evangelical about addressing the digital divide," he added. In a program Sivak believes is unique in scope, the district has assembled a three-pronged strategy that addresses the major challenges of providing and sustaining universal broadband to citizens: cost, public education and access to technology. All three obstacles are being addressed with separate stimulus grants awarded by the federal government.

Comcast Outlines Program Access Philosophy To Regulators

Comcast programming executives met with representatives of the Federal Communications Commission and the Justice Department in Washington to talk about how Comcast makes its programming available on the air and online, including assuring regulators that it does not require carriage of any of its owned networks as a condition of access to any other.

The company reiterated that it has no plans to migrate online delivery of NBC programming to the TV Everywhere subscription model. Jeff Shell, president of the Comcast Programming Group, told the staffers, in answer to a question, that Comcast may discount the price of one network to expand distribution of another, but it does not condition carriage of one channel on carriage of another, saying that the cost-benefit analysis of that strategy does not add up. On the issue of access to online programming, which FCC and Justice both appear to be interested in, Shell said Comcast "envisioned" making online video available to competing cable, satellite and telco distributors.

$33 Billion Wireless Auction Upheld by Appeals Court

The US Third Circuit Court of Appeals upheld federal government auctions of about $33 billion of wireless spectrum, saying it would be "imprudent and unfair" to undo them even though some rules governing them were invalid.

The ruling allows Verizon, T-Mobile and others to keep billions of dollars of licenses they had won in the auctions, which took place between 2006 and 2008. The auction process had been challenged by Council Tree Communications, Bethel Native Corp and the Minority Media and Telecommunications Council, which contended that Federal Communications Commission rules for the auctions were unfair to smaller service providers. The FCC had offered credits to smaller providers of as much as 35 percent to help them to compete for licenses. However, it also adopted rules to limit the ability of these providers to team up with larger rivals, or sell their credits to those rivals for quick profits. According to the appeals court, companies that qualified for credits comprised 113 of the 205 winning bidders, but won only about 3.2 percent of the licenses' total value. In contrast, in auctions that preceded adoption of the rules, qualifying bidders had won about 70 percent of the licenses by dollar value, the court said. In its 53-page ruling, the Third Circuit struck down two rules designed to limit or dissuade small carriers from selling their spectrum capacity, and upheld a third.

Americans Are Dumping Cable TV, but Execs Say Economics to Blame

Last quarter pay TV executives saw the day they hoped would never come: the first total decline in subscriptions since, well, the advent of cable.

But experts cautioned this isn't about "cord-cutting," or consumers opting out of cable TV for Hulu, Netflix and other online services. Rather, economic forces hit cable hard, including low housing formation, high unemployment rates and the lack of renewals for cheap contracts new customers signed last year during the digital-TV transition. The multichannel TV industry -- including cable, satellite and the telcos -- collectively lost 216,000 subscribers in the second quarter to the same period last year, declining to 100.1 million overall. That was driven by a steep 711,000 decline in cable TV alone, which more than offset subscriber gains for telcos such as Verizon Fios and satellite providers like DirecTV and Dish Network.

Minorities most active on mobile phones

African-Americans and Hispanics talk and text on mobile phones significantly more than their white counterparts, according to the Nielsen Company.

The results correlate with an earlier Pew survey that found minorities are more likely to use their smartphones to access the Web than whites. The latest data shows minorities are generally more likely to use mobile devices to communicate, meaning any proposals targeting wireless communications may disproportionately affect black and Hispanic Americans. When it comes to texting, race or ethnicity takes a back seat to age. Teenagers average a whopping 2,779 text messages a month, while 18- to 24-year-olds send or receive 1,299 on average. People between the ages of 25 and 35 average just under 600 text messages per month. The variance among age groups for voice minutes used was significantly less.