October 2010

France and Spain Ordered to Stop Using Telecoms Taxes to Subsidize TV Services

The European Commission has decided that imposing a tax on telecommunications networks to subsidize the cost of public television services is incompatible with European law and has instructed France and Spain to abolish the charge.

In both cases, the Commission considers these "telecoms taxes" to be incompatible with EU telecoms rules, which require specific charges on telecoms operators to be specifically and directly related to covering the costs of regulating the telecoms sector. The requests take the form of "reasoned opinions" under EU infringement procedures. France and Spain now have two months to inform the Commission of measures taken to comply with EU telecoms rules. If they fail to do so, the Commission may refer them to the EU Court of Justice.

Government to Reveal New UK Universal Broadband Policy Before Christmas

The UK coalition governments Secretary of State for Culture, the Olympics, Media and Sport (DCMS), Jeremy Hunt, has confirmed that a full policy aimed at making broadband Internet speeds of at least 2Mb available to everybody in the country by 2015 (i.e. Universal Service Commitment) will be outlined before the end of this year. This will also include more detail on helping to foster the private sector funded rollout of newer "super-fast" Next Generation Access (NGA) broadband services.

Why Broadband Service in the US Is So Awful

[Commentary] The average US household has to pay an exorbitant amount of money for an Internet connection that the rest of the industrial world would find mediocre. The consequences are far worse than having to wait a few extra seconds for a movie to load.

Because broadband connections are the railroads of the 21st century -- essential infrastructure required to transmit products (these days, in the form of information) from seller to buyer -- our creaky Internet makes it harder for U.S. entrepreneurs to compete in global markets. Phone companies have to compete for your business. Even though there may be just one telephone jack in your home, you can purchase service from any one of a number of different long-distance providers. Not so for broadband Internet. Here consumers generally have just two choices: the cable company, which sends data through the same lines used to deliver television signals, and the phone company, which uses older telephone lines and hence can only offer slower service.

Yet, puzzlingly, the Federal Communications Commission wants to take only a half-step. FCC Chairman Julius Genachowski has said that although he regards the Internet as a telecommunications service, he does not want to bring in third-party competition. It is frustrating to see Chairman Genachowski acknowledge that the U.S. has fallen behind so many other countries in its communications infrastructure and then rule out the most effective way to reverse the decline. We call on the FCC to take this important step and free the Internet.

Fiber is Different . . . and Better

[Commentary] Does fiber matter? The Fiber to the Home Council (FTTH Council) recently conducted its annual survey of fiber deployment in the U. S. and adoption of fiber connections by residential users. They found continuing upward growth in the number homes passed (almost 20 million or 100 times growth since 2001), the number of homes in the U. S. connected via fiber (6.4 million). They found that the median download speed for fiber networks was 16.6 mbps versus 10.8 mbps for cable modem. Likewise, median upload speed for fiber networks and cable modem were 4.5 mbps and 1.4 mbps respectively. In order to get a sense of the quality of the connection, they examined how many times consumers had to reboot per month on average depending on the type of connection. They found that customers on fiber connections had to reboot only 1.5 times a month versus 3.4 times a month for cable. While a crude indicator, speed alone is not the only metric that counts when it comes to broadband connections. When asked how satisfied consumers were with various aspects of their broadband service, almost 70 percent of customers with fiber connections said they were very satisfied with the reliability of their fiber connection versus only 49 percent of those with cable modem connections.

There is much more research to be done on these questions but when it comes to the consumer, economic and societal impacts of fiber, there are clear indicators that it is a significant contributor to reducing commuting, improving energy efficiency, and promoting small business growth. In other words, fiber is not just another broadband technology. There are clear indicators that consumers believe it is a better technology.

E-Rate Revisions Seen as Good First Step

It's a good start. That seems to be the general feeling among educational technology advocates about the recent reforms to the federal E-rate program, whether they are applauding a new funding index for inflation, the allowance for "dark fiber" connections, or the funding of pilot wireless-learning programs.

While the revisions that were adopted to the $2.25 billion program at the Federal Communications Commission's Sept. 23 meeting generally have been welcomed, experts say there is still work to do before the program -- set up in 1997 to fund discounts for schools and libraries to connect to the Internet—can address fully contemporary technology demands. Educators laud indexing the funding cap for inflation, but they say funding still needs to be expanded far beyond that level. They praise the new option of extending E-rate-funded Internet services to the community after school hours, but question if "school spots" are an effective solution for sparsely populated districts. And while some worry a pilot program to pay for, according to the FCC's written order, a "handful" of wireless education efforts would divert money from campus initiatives, others say it's a baby step on a long path toward truly supporting mobile learning. In short, experts say the FCC's revisions may show that it is in tune with the changing technology needs of schools, but that it also has chosen the simplest solutions to bring about the swiftest change.

Guide arms Tea Party members with anti-network neutrality talking points

The Heartland Institute released "The Patriots Toolbox" on Oct 4. The telecommunications chapter includes a list of 10 major points for Tea Party activists who want to discuss communications policy.

"Oppose network neutrality regulations," the guide instructs. "Attempts to legislate network neutrality risk a repeat of the disaster that was caused by the Telecom Act of 1996." The guide condones four network neutrality principles that the Federal Communications Commission (FCC) adopted in 2005, but says policymaking should end there. "Should the FCC or state regulators do more to enforce network neutrality?" it says. "Most surely not." The guide also tells activists to support the repeal of discriminatory taxes and fees and argue for less government involvement in broadband deployment. It also says telecom companies should have greater leeway to set prices. The guide has low regard for the FCC as a consumer protection agency and encourages making a single entity responsible for consumer protection. "The agency has not set measurable enforcement goals, developed a well-defined enforcement strategy, or established performance measures linked to the enforcement goals," it says, commending what it sees as superior efforts at the Federal Trade Commission (FTC).

Google TV Tunes To Turner, HBO, CNBC, Netflix And Others

Google has queued up cable programmers and content partners -- including Turner Broadcasting System, HBO, CNBC, Netflix, Amazon.com and the National Basketball Association -- in the hopes of providing more compelling reasons for consumers to buy products built on its Google TV software. But rather than providing grist for the "cord-cutting" mill, the Google TV content partnerships largely appear supplemental to cable TV services.

Indeed, in HBO's case, a pay-TV subscription will be necessary to access the premium programmer's HBO Go service through a Google-based device, while the CNBC and NBA applications are designed to be used while watching live TV. The ambitious Google TV project requires consumers to purchase a separate Internet set-top box or a new TV, promising a way to combine conventional TV with Web content, YouTube clips and other video, games and applications into "a single, seamless entertainment experience." Analysts have expressed skepticism that Google TV will achieve widespread adoption anytime soon, if ever, given a variety of business and technology challenges.

Coalition Urges Obama Not To Rush Review of Comcast-NBC Universal Merger

A coalition of public interest groups and private organizations sent President Obama a letter on oCT 4 pressing the administration not to rush the regulatory review of the proposed $30 billion merger between Comcast and NBC Universal.

"We urge your administration to ensure this unprecedented combination receives the scrutiny that it deserves," the letter concluded. The signatories, also known as the Coalition for Competition in Media, attacked Comcast in the note saying the company's lobbying efforts "are a complete affront to the regulatory process and the job asked of your administration to protect consumers and competition." In particular, the coalition took issue with Comcast's recent announcement that Steve Burke, currently chief operating officer at Comcast, will lead the united companies upon completion of the merger. The release wrongly assumed "the merger was a foregone conclusion," the coalition noted.

October 4, 2010 (Between Regulator and Innovator)

BENTON'S COMMUNICATIONS-RELATED HEADLINES for MONDAY, OCTOBER 4, 2010

Future of Music Policy Summit 2010 today http://benton.org/node/41051 and the rest of the week http://benton.org/calendar/2010-10-03--P1W


POLICYMAKERS
   FCC's Julius Genachowski struggles between roles of regulator, innovator
   Former FCC Chairman Kevin Martin's Dramatic Makeover

INTERNET/BROADBAND
   Minority Media Group to FCC: Give Net Neutrality Legislation Another Chance
   West Virginia defends broadband stimulus grant
   E-rate in a Broadband World
   Gigabit Tech Prize
   Arizona State University and the Smithsonian bring classrooms to the rainforest
   BT to let consumer demand shape superfast broadband
   Casinos Now See Online Gambling as a Better Bet

TELECOM
   Verizon Wireless to Pay Millions in Refunds

SPECTRUM/WIRELESS
   NTIA Beats Deadline For Spectrum Report
   EZ Texting, T-Mobile settle text blocking suit
   India granted limited BlackBerry Messenger access
   Texters, you'd be better off driving drunk

MEDIA OWNERSHIP
   Fear and Favor
   The Corrosive Influence of Over-Concentrated Corporate Power
   Google's CEO: The Laws Are Written by Lobbyists [Video]

TELEVISION
   Charter Subscribers Victims of Retransmission 'Surcharge'
   Users Demand Bigger, Better TV, Digital
   Too Funny for Words
   Feds Sue Fox News in Age, Sex Bias Case

HEALTH
   Health Information Technology to Improve Treatment and Reduce Costs
   See also:ONC studying risks of de-identified patient records
   Brothers Await Broad Use of Medical E-Records

CYBERSECURITY/INTELLECTUAL PROPERTY
   FBI disrupts international cyber crime ring
   Cyber Command slips behind schedule
   National Cybersecurity Awareness Month
   Grants to Combat Intellectual Property Crimes

PRIVACY
   Ad Group Unveils Plan to Improve Web Privacy
   Internet monitoring plan threatens privacy

OPEN GOVERNMENT
   Watchdog group waiting for Obama to fulfill ethics pledge for online hub

ELECTIONS AND MEDIA
   Carl Paladino's Journalist-Ban, First Amendment Problem [Video]

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POLICYMAKERS

GENACHOWSKI BETWEEN REGULATOR AND INNOVATOR
[SOURCE: Washington Post, AUTHOR: Cecilia Kang]
Call him what you want, but don't call Julius Genachowski an Internet regulator. That label, in a political environment where regulation of big business often holds particular scorn, is one that the chairman of the Federal Communications Commission has been fighting to avoid. But for the federal government's top cop for broadband Internet services, that title tends to stick. Chairman Genachowski set two key policy goals when he took the job: to bring super-fast Internet connections to every home in America and to make sure those lines were open for any Web site and new software start-up to have a shot at making it in the digital economy. But those goals have proved just beyond reach, particularly as he tries to carry out them out without stepping too hard on the toes of corporate America. One year into his campaign, his agency is weaker than ever, and it's unclear whether he'll be able to be more than the nation's top regulator for plain old phones and broadcast TV. And that's just fine with many companies who think the federal government shouldn't reign over the Web.
benton.org/node/43013 | Washington Post
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KEVIN MARTIN REDUX
[SOURCE: CongressDaily, AUTHOR: David Hatch]
When Kevin Martin stepped down as chairman of the Federal Communications Commission in early 2009, many thought that his days as a force on regulatory issues were over. Today, he has re-emerged as a power broker, corralling significant opposition to the proposed $30 billion union of Comcast and NBC Universal, the first blockbuster communications deal to go before the Obama administration, which must decide whether to approve it. As co-chairman of the technology practice at Patton Boggs, Washington's highest-grossing lobbying firm, Martin represents a half-dozen clients who are seeking to derail or heavily condition a joint venture that would create an entertainment juggernaut. Among the proposed entity's holdings: dozens of television networks and websites, including NBC, MSNBC, and CNBC; broadcast stations in 10 markets; Universal Studios and its library of several thousand films, its theme parks; and a sports arena. The stakes in the lobbying battle engulfing Washington couldn't be higher. In addition to worries about consumer choice and competition, on the line are the business model for accessing programming through the Web and network television's role in the Internet era. Perhaps more important, so is the template for the Obama administration's review of future communications mega-mergers. Martin's new role seems a natural fit, given his well-documented history of sparring with the cable television industry and in particular Comcast, already the nation's largest provider of cable and residential broadband service. But he is also raising eyebrows for his dramatic makeover that would impress even the most sophisticated image expert.
benton.org/node/43006 | CongressDaily
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INTERNET/BROADBAND

MMTC STILL WANTS NET NEUTRALITY LEGISLATION
[SOURCE: CongressDaily, AUTHOR: David Hatch]
David Honig, president and executive director of the Minority Media and Telecommunications Council, urged the Federal Communications Commission not to proceed with his regulatory proposals for broadband, but to instead give Congress another shot at passing network neutrality legislation during the upcoming lame duck session. Honig's view is at odds with other watchdogs and several prominent Democratic lawmakers who have urged Chairman Genachowski to act following the collapse of last-minute legislative efforts. The minority media advocate backs enhanced network neutrality safeguards but opposes reclassifying broadband as a telecom service subject to stricter regulation. He contends that such a step would undermine opportunities for minority enterprises. "The tide is in favor of getting the legislation that almost crossed the finished line," he insisted.
The Alliance for Digital Equality (ADE), whose eclectic membership includes AT&T, Cisco, BET and the Communications Workers of America, seconded that emotion. In a statement, alliance chairman Julius Hollis said: "By calling for reclassification, fringe groups are simply out of touch with what our communities really need, and that's jobs and investment. We cannot allow them to hijack this debate, nor can we allow overregulation by the FCC to impede this goal."
benton.org/node/43007 | CongressDaily | B&C
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WV DEFENDS BROADBAND STIMULUS GRANT
[SOURCE: Charleston Gazette, AUTHOR: Eric Eyre]
Gov Joe Manchin's (D-WV) office has notified federal officials that its plan to build a high-speed Internet network in West Virginia "is in full compliance" with a $126 million stimulus grant being used to pay for the project. The governor's office was responding to a formal protest filed by Citynet, a telecommunications company that alleges the state isn't spending the federal economic stimulus money as the grant intended. Citynet recently told federal officials that the grant solely benefits Frontier Communications, a Citynet competitor. Gov Manchin disputed the allegations. "Through the grant process, the extensive due diligence, and from the date of the award, the state has specifically met all the requirements and guidelines set by the [federal government] to secure this funding," the governor said in a prepared statement. "We will continue to take the necessary steps to ensure the grant is properly carried out."
benton.org/node/43001 | Charleston Gazette
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E-RATE IN A BROADBAND WORLD
[SOURCE: Federal Communications Commission, AUTHOR: Gina Spade]
This week, the Commission released the text of an order that modernizes and upgrades the E-rate program to bring fast, affordable Internet access to schools and libraries across the country. Despite the great success of the E-rate program to date, broadband connectivity in schools and libraries is too slow to keep up with the innovative high-tech tools that are now being used across the United States. In fact, the Commission conducted a survey which found that almost 80 percent of E-rate recipients believe their current Internet connections are not sufficient to meet their current needs. To begin to address this gap, the Commission's order will make it easier for schools and libraries to get the highest speeds for the lowest prices by increasing their options for broadband providers.
benton.org/node/43008 | Federal Communications Commission | read a summary of the FCC order from benton Foundation
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CONSUMER DEMAND AND BT BROADBAND NETWORK
[SOURCE: Financial Times, AUTHOR: Andrew Parker]
BT is hoping to let consumer demand play a leading role in shaping where it builds its superfast broadband network in the UK. The telecoms company is appealing to communities to go online and register their interest in getting connected to BT's high speed network. Five areas that demonstrate strong demand for superfast broadband are guaranteed to see the infrastructure run past their homes and offices by 2012. BT is spending £2.5bn on an optical fibre network that is due to reach 17m homes and small businesses by 2015. The network will mainly run past homes and offices in towns and cities. BT has already identified the locations of 7m homes that will be able to use the infrastructure. However, BT has not pinpointed the locations of the other 10m homes that could benefit from the network. BT's planned online survey of householders and businesses could therefore influence the future shape of the company's network.
benton.org/node/43026 | Financial Times
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ONLINE GAMBLING
[SOURCE: New York Times, AUTHOR: Brian Stelter]
Many of the country's largest casinos, long opposed to gambling games like poker on the Internet, are now having second thoughts. Although online gambling is popular with millions of Americans, it is illegal in the United States, and the casino industry has considered it a threat. But the American Gaming Association -- a trade group that represents major casinos like Harrah's Entertainment, MGM Resorts and Wynn Resorts -- is working on a proposal that would ask Congress to legalize at least some form of online gambling. Gambling specialists said it was likely that any casino-supported legalization would be limited to Internet poker because it was considered the least threatening to brick-and-mortar casinos. Internet poker already had the backing of some in the casino industry, and was seen as a new and lucrative source of revenue for the casino companies.
benton.org/node/43028 | New York Times
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TELECOM

VERIZON REFUND
[SOURCE: New York Times, AUTHOR: Edward Wyatt]
Verizon Wireless said on Oct 3 that it would pay up to $90 million in refunds to 15 million cellphone customers who were wrongly charged for data sessions or Internet use, one of the largest customer refunds by a telecommunications company. The announcement came in a statement from Verizon Wireless as the company held talks with the Federal Communications Commission about complaints of unauthorized charges and in response to questions about a possible settlement of an FCC investigation into the issue. Verizon said in its statement that the customers would receive credits from $2 to $6 on their October or November bills or, in the case of former customers, refund checks. The refunds will be paid to customers who did not have data access plans but who were nevertheless assessed one or more charges of $1.99 because of data exchanges initiated by software built into their phones, or because of charges for inadvertently going online on the phones. The FCC is likely to press Verizon to pay a penalty for failing to notify customers of the problem, which has been occurring since at least 2007, according to people close to the talks. Michele Ellison, the chief of the FCC enforcement bureau, said in a statement that the agency was "gratified to see the repayment, but for millions of Americans it's a day late and a $1.99 short."
benton.org/node/43035 | New York Times | WSJ | Bloomberg
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SPECTRUM/WIRELESS

NTIA SPECTRUM REPORT
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
Apparently, the National Telecommunications & Information Administration has sent the White House a report on its plan for freeing up spectrum through more efficiency and reclamation. The hold-up on the NTIA report is said to be the federal interagency clearance process for a report dealing with "sensitive" federal government spectrum use, like that of the Defense Department.
benton.org/node/43010 | Broadcasting&Cable
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TEXTING CASE SETTLED OUT OF COURT
[SOURCE: Washington Post, AUTHOR: Cecilia Kang]
EZ Texting and T-Mobile settled a lawsuit over the alleged blocking of text messages for a medical marijuana Web site. EZ Texting's lawsuit, in which it said T-Mobile clamped down on free speech on the Internet, was set for a hearing at the U.S. District Court of he Southern District Court of New York this week. In a statement Friday, EZ Texting -- a service that sends text message market alerts to cellphone users -- said: "T-Mobile and EZ Texting are pleased to have reached a settlement to the lawsuit filed by EZ Texting on Friday, September 17, 2010. Although the specific terms of the settlement are confidential, EZ Texting and T-Mobile will comply with all applicable laws and mobile marketing guidelines for text message marketing campaigns offered to T-Mobile's customers." "Just because this particular dispute was settled doesn't mean the FCC shouldn't act on Public Knowledge's petition," said Gigi Sohn, president of Public Knowledge. "Important, legal speech will continue to be blocked arbitrarily by wireless carriers unless and until the FCC takes text messages out of its regulatory purgatory."
benton.org/node/43012 | Washington Post | Wired
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TEXTING AND DRIVER SAFETY
[SOURCE: Los Angeles Times, AUTHOR: Michael Fumento]
[Commentary] Unfortunately, laws intended to deal with the problem of texting while driving, a major topic at the Transportation Department's Distracted Driving Summit on Sept. 21, reflect vital misunderstandings about why a cellphone combined with a moving vehicle can be so deadly and how to deal with it. Texting while driving can be more dangerous than driving while swigging Jack Daniels, according to studies. In a 2009 survey, Car and Driver magazine tested two of its staffers under a variety of conditions. It found that on average, driving at 70 mph, one man braking suddenly while legally drunk (0.08 blood alcohol content) traveled 4 feet beyond his baseline performance. But reading an e-mail while driving sober, he traveled 36 feet beyond the baseline result and 70 feet while sending a text. In the worst case while texting, he traveled 319 feet before stopping. Yet 66% of respondents to a 2007 Harris Interactive poll admitted they've texted while driving, even as 89% said it should be banned. And it's the youngest drivers, who already are in far more than their share of road accidents and deaths, who do it most, according to government and insurance industry reports. We don't need text education. We need legal coercion. Yet 20 states still don't ban texting and driving, and only eight plus the District of Colombia ban talking on hand-held phones while driving. None ban hands-free phones.
benton.org/node/43029 | Los Angeles Times
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MEDIA OWNERSHIP

FEAR AND FAVOR
[SOURCE: New York Times, AUTHOR: Paul Krugman]
[Commentary] Every major contender for the 2012 Republican presidential nomination who isn't currently holding office and isn't named Mitt Romney is now a paid contributor to Fox News. Now, media moguls have often promoted the careers and campaigns of politicians they believe will serve their interests. But directly cutting checks to political favorites takes it to a whole new level of blatancy. Fox News has gone from merely supporting Republican candidates to anointing them. Christine O'Donnell, the upset winner of the G.O.P. Senate primary in Delaware, is often described as the Tea Party candidate, but given the publicity the network gave her, she could equally well be described as the Fox News candidate. Anyway, there's not much difference: the Tea Party movement owes much of its rise to enthusiastic Fox coverage. As the Republican political analyst David Frum put it, "Republicans originally thought that Fox worked for us, and now we are discovering we work for Fox" — literally, in the case of all those non-Mitt-Romney presidential hopefuls. It was days later, by the way, that Mr. Frum was fired by the American Enterprise Institute. Conservatives criticize Fox at their peril. So the Ministry of Propaganda has, in effect, seized control of the Politburo. What are the implications? Perhaps the most important thing to realize is that when billionaires put their might behind "grass roots" right-wing action, it's not just about ideology: it's also about business. What the Koch brothers have bought with their huge political outlays is, above all, freedom to pollute. What Mr. Murdoch is acquiring with his expanded political role is the kind of influence that lets his media empire make its own rules. So think of those paychecks to Sarah Palin and others as smart investments. After all, if you're a media mogul, it's always good to have friends in high places. And the most reliable friends are the ones who know they owe it all to you.
benton.org/node/43032 | New York Times
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MEDIA OWNERSHIP POWER
[SOURCE: New York Times, AUTHOR: Brian Stelter]
Criticizing Fox News is a year-round sport for many hosts on MSNBC, the cable news channel, and especially for Keith Olbermann, whose verbal spitballs at the Fox host Bill O'Reilly have occasionally put his parent company, NBC Universal, on edge. Pending government approval, MSNBC will soon have a new parent company, Comcast, and that may prove to be awkward for Mr. Olbermann and other TV critics of Fox. As a distributor of cable programming, Comcast is in business with Fox and its parent company, the News Corporation. The business interests of Comcast and the News Corporation were brought to light in a lawsuit by Barry Nolan, a Comcast employee whose protest of Mr. O'Reilly cost him a $200,000-a-year job two years ago. Mr. Nolan later protested his firing, and last month, he lost the case. Nolan's firing may reflect the "corrosive influence of over-concentrated corporate power."
benton.org/node/43031 | New York Times
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LAWS WRITTEN BY LOBBYISTS
[SOURCE: The Atlantic, AUTHOR: Derek Thompson]
The average American doesn't realize how much of the laws are written by lobbyists" to protect incumbent interests, Google CEO Eric Schmidt told Atlantic editor James Bennet at the Washington Ideas Forum. "It's shocking how the system actually works." In a wide-ranging interview that spanned human nature, the future of machines, and how Google could have helped the stimulus, Schmidt said technology could "completely change the way government works." "Washington is an incumbent protection machine," Schmidt said. "Technology is fundamentally disruptive." Mobile phones and personal technology, for example, could be used to record the bills that members of Congress actually read and then determine what stimulus funds were successfully spent.
benton.org/node/43030 | Atlantic, The | link.brightcove.com
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TELEVISION

CHARTER AND RETRANSMISSION FEES
[SOURCE: TVNewsCheck, AUTHOR: Harry Jessell]
[Commentary] Is Charter Communications, the big St. Louis-based cable company, gouging its customers? It sure seems like it. Cable's sixth largest operator has begun itemizing the fees that it pays to local broadcasters for the privilege of retransmitting their signals to its subscribers. The monthly bills now going out show that Charter is paying around $1 a month for the broadcast signals. But it is charging customers $25 per month for the basic tier containing the signals. And Charter is listing the broadcast fees in the "Taxes and Fees" section of its bills and calling it a "surcharge," suggesting that they are some kind of government-mandated fees rather than just another cost of doing business. That's more than a little misleading. Charter tries to explain the new fees on its website, but rather than clarifying matters it sinks deeper into the muck of its own misinformation. The broadcast signals "were historically made available to Charter at no cost, or low cost," the site says. True enough. But then it goes on to say that "the prices now demanded by broadcast stations have necessitated that we pass these costs on to customers." That's kind of a lie, too, isn't it? Who necessitated that they pass the costs along in the form of a special fee? It was not the "prices" or broadcasters. It was nobody other than Charter itself. Charter doesn't have to pass along the costs of retrans. It could absorb the costs and settle for a slightly lower margin. Or, it could make room in the budget for retrans by whacking other costs, perhaps some of those networks that nobody watches. Broadcasters in markets where Charter operates -- St. Louis; Madison, Wis.; parts of North and South Carolina, much of Michigan and Montgomery, Ala., -- ought to make sure could demand that Charter reveal what it is paying for each of the other programming services, from ESPN on down. Broadcasters then will come out looking good. The 25 cents or so that Charter is paying each network affiliate will look like a bargain compared to what it's paying cable networks with far fewer viewers.
benton.org/node/43009 | TVNewsCheck
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BIGGER, BETTER TV
[SOURCE: MediaPost, AUTHOR: Wayne Friedman]
It's a larger world for U.S. entertainment consumers: People are buying bigger TVs, more DVR machines, faster Wi-Fi services and newer mobile devices. In its second-quarter home-technology report, The Nielsen Company says TV sets with screens 41 inches and larger continue to be big sellers. Sales of HDTV sets have grown 26.9% and LCD flat-screen TVs are up 48.2% in the second quarter this year versus two years ago. Home Internet-broadband access is 3.8% higher in the second quarter of 2010 versus the first quarter of the year. Nielsen says 85.3% of Americans have some kind of Internet access. Wireless (Wi-Fi) home technology has grown by 24% in the last two years. Time-shifting TV machines are now in 40% of U.S. homes, with the rate of growth still strong, up 14.5% in the second quarter of this year from the first quarter. Mobile entertainment players -- MP3 units -- are now in almost 50% of U.S. homes. Apple's array of iPod units has a 63% share. Apple's iPad is now in 3.6% of U.S. homes. But not all entertainment products/services are posting increases.
benton.org/node/42998 | MediaPost
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TOO FUNNY FOR WORDS
[SOURCE: New York Times, AUTHOR: Peter Funt]
[Commentary] Although mainstream broadcasters won a battle against censorship over the summer when a federal appeals court struck down some elements of the Federal Communications Commission's restrictions on objectionable language, they've always been more driven by self-censorship than by the government-mandated kind. Eager to help are advertisers and watchdog groups, each appearing to take a tough stand on language while actually reveling in the double entendre. TV's often-hypocritical approach to censorship was given its grandest showcase back in 1972, when the comedian George Carlin first took note of "Seven Words You Can Never Say on Television." The bit was recreated on stage at the Kennedy Center a few years ago in a posthumous tribute to Carlin, but all the words were bleeped — not only for the PBS audience but for the theatergoers as well. Many who saw the show believed the bleeped version played funnier. After all, when Bill Maher and his guests unleash a stream of nasty words on HBO, it's little more than barroom banter. But when Jon Stewart says the same words, knowing they'll be bleeped, it revs up the crowd while also seeming to challenge the censors. In its July ruling, the appeals court concluded, "By prohibiting all 'patently offensive' references to sex ... without giving adequate guidance as to what 'patently offensive' means, the FCC effectively chills speech, because broadcasters have no way of knowing what the FCC will find offensive." That's quite reasonable -- and totally beside the point. Most producers understand that when it comes to language, the sizzle has far more appeal than the steak. Broadcasters keep jousting with the FCC begging not to be thrown in the briar patch of censorship, because that's really where they most want to be. Jimmy Kimmel has come up with a segment for his late-night ABC program called "This Week in Unnecessary Censorship." He bleeps ordinary words in clips to make them seem obscene. How bleepin' dare he! Censorship, it seems, remains one of the most entertaining things on television.
benton.org/node/42997 | New York Times
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HEALTH

HIT TO IMPROVE TREATMENT
[SOURCE: House Committee on Science and Technology's Subcommittee on Technology and Innovation, AUTHOR: ]
The House Committee on Science and Technology's Subcommittee on Technology and Innovation held a hearing to discuss the integration of information technology (IT) with health care as a means to improve patient care and lower escalating health care costs. The use of electronic health records has the potential to prevent some of the medical mistakes that lead to the deaths of over 98,000 patients annually. Enabling physician access to electronic health records could reduce duplicate medical tests and adverse drug interactions, while providing instant access to a patient's medical history in emergency situations. "The health care industry is still surprisingly paper-based and largely unaided by information technology. Medical treatment in this country often involves state-of-the-art equipment. However, physicians and other health care providers have been slow to adopt health IT systems and electronic health records—instead, they're still keeping track of our medical information the same way they were 50 years ago," stated Subcommittee Chairman David Wu (D-OR). "Our current health care system relies on the patient to be the record keeper. The quality of care a patient receives may depend on the person's ability to recall detailed information about drug names and dosages. As our population ages, the importance of maintaining a comprehensive record of all medications a patient is taking and the treatments they have received will only increase. Replacing paper medical records with secure electronic records will improve care as multiple doctors treating the same patient will have accurate and timely information," Wu continued. In addition, the development of health IT would allow physicians to share test results with colleagues across the country for consultation, reducing the need for costly repeat tests and the miscommunication that can cause numerous medical errors. Studies suggest that eliminating inaccuracies related to paperwork and enabling better communication between health care providers could improve treatment and lower health care costs significantly. Witnesses discussed progress made by the Department of Health and Human Services, the National Institute of Standards and Technology, and non-governmental health IT stakeholders to establish standards that will ensure the privacy and security of electronic health care information, as well as enable interoperability among products developed by different vendors. The panel discussed how a lack of established standards for health IT has been a key challenge hindering wider adoption of this technology. Without standards to ensure that information can be exchanged seamlessly between software and hardware devices from different manufacturers, doctors and hospitals are reasonably reticent to make initial investments in health IT systems.
benton.org/node/43000 | House Committee on Science and Technology's Subcommittee on Technology and Innovation
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CYBERSECURITY/INTELLECTUAL PROPERTY

CYBER CRIME RING
[SOURCE: The Hill, AUTHOR: Gautham Nagesh]
The Federal Bureau of Investigation announced that it has disrupted an international ring of cyber criminals who together stole $70 million by using a Trojan horse virus. According to the FBI, the thieves allegedly targeted small- to medium-sized companies, towns, churches and individuals by infecting their computers with malware that captured passwords, account numbers and other data used to log into online banking accounts. The group attempted to steal $220 million and ended up with $70 million from victims' bank accounts. Most of the accused hailed from Eastern Europe; many were based in Ukraine, where several worked as Web developers. Ten suspects were arrested in New York on Thursday, with another 10 having been arrested previously. The FBI is still seeking 17 others and released a wanted poster featuring their likenesses on Friday. The FBI worked closely with authorities from the United Kingdom, Netherlands and Ukraine to apprehend the suspects. A senior FBI official credited the international cooperation for bringing the suspects before a judge in Manhattan.
benton.org/node/43004 | Hill, The
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CYBER COMMAND BEHIND SCHEDULE
[SOURCE: Reuters, AUTHOR: Jim Wolf]
Cyber Command, responsible for shielding 15,000 US military networks and for being ready to go to war in cyberspace, has slipped behind schedule for becoming fully operational, the Defense Department said. The command is still putting necessary capabilities in place, said Bryan Whitman, a Pentagon spokesman. It was due to be declared fully operational no later than this month under June 2009 orders from Defense Secretary Robert Gates, an ambiguous deadline many read as October 1.
benton.org/node/43003 | Reuters
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CYBERSECURITY AWARENESS MONTH
[SOURCE: The White House, AUTHOR: President Barack Obama]
President Barack Obama has proclaimed October 2010 as National Cybersecurity Awareness Month. I call upon the people of the United States to recognize the importance of cybersecurity and to observe this month with activities, events, and trainings that will enhance our national security and resilience. America's digital infrastructure is critical to laying the foundation for our economic prosperity, government efficiency, and national security. We stand at a transformational moment in history, when our technologically interconnected world presents both immense promise and potential risks. The same technology that provides new opportunities for economic growth and the free exchange of information around the world also makes possible new threats. During National Cybersecurity Awareness Month, we recognize the risk of cyber attacks and the important steps we can take to strengthen our digital literacy and cybersecurity.
benton.org/node/43002 | White House, The | White House blog | The Hill
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JUSTICE ANNOUNCES NEARLY $4 MILLION IN AWARDS TO COMBAT INTELLECTUAL PROPERTY CRIMES
[SOURCE: Department of Justice, AUTHOR: Press release]
The Department of Justice's Office of Justice Programs (OJP) today announced that in fiscal year 2010 nearly $4 million was awarded to enable state, local and tribal law enforcement agencies and prosecutors to address education, deterrence, enforcement and evidence gathering for prosecution of intellectual property crime in coordination with federal efforts. Over $2 million in discretionary awards were made to 13 state and local jurisdictions.
The funding to the 13 state and local jurisdictions provides support for:
Enforcing criminal intellectual property laws, including the reimbursement of expenses incurred in performing criminal enforcement operations, such as overtime payments and storage fees for seized evidence.
Educating the public to prevent, deter, and identify criminal violations of intellectual property laws.
Establishing task forces to include state, local law, or tribal enforcement entities, or both, exclusively to conduct investigations and forensic analyses of evidence and prosecutions in matters involving criminal intellectual property laws.
Assisting state, local, and tribal law enforcement officers and prosecutors in acquiring computer and other equipment to conduct investigations and forensic analyses of evidence in matters involving criminal intellectual property laws.
benton.org/node/42999 | Department of Justice
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PRIVACY

WEB PRIVACY PROPOSAL
[SOURCE: New York Times, AUTHOR: Tanzina Vega]
As the debate around online privacy and advertiser access to users' data continues, a group of the advertising industry's largest trade organizations was to announce on Oct 4 the details of a self-regulatory program that would allow users to opt out of being tracked by its member organizations. The program provides details on how companies can adopt some of the principles for conducting online behavioral advertising outlined in a report released last July. The program includes the use of an icon called the "Advertising Option Icon" that marketers can place near their ads or on the Web pages that collect data that is used for behavioral targeting. Users who click on the icon, a lower case letter "I" inside a triangle that is pointing right, will see an explanation of why they are seeing a particular ad and will be able to opt out of being tracked. Some companies may still serve less focused ads after a user opts out, while others may stop showing ads to that user altogether. But representatives for the trade organizations said the steps were not an indication that the privacy debate had ended.
benton.org/node/43034 | New York Times
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THREAT TO PRIVACY
[SOURCE: San Francisco Chronicle, AUTHOR: Editorial staff]
[Commentary] The Obama administration is preparing legislation that would force all Internet communications providers - from social networking sites to smart phones - to give the government more access to intercept and monitor online communications. Law enforcement officials claim that terrorists are "going dark" and that they need more tools to monitor them. Silicon Valley was taken by surprise by the announcement, suggesting that officials didn't even think to include technology companies in the discussion. Maybe if they had, they wouldn't have come up with such a drastic, odious and cumbersome proposal. We need to hear a lot more from the Obama administration about why this is necessary. Because it seems to be an invasion of our privacy with little upside for public safety.
benton.org/node/43033 | San Francisco Chronicle
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OPEN GOVERNMENT

ETHICS DOT GOV
[SOURCE: The Hill, AUTHOR: Kevin Bogardus]
Despite a campaign pledge, the Obama administration so far has failed to set up a central online hub for all of the government's ethics information. A review of more than 560 pages of e-mails obtained by The Hill through a Freedom of Information Act request showed that senior White House aides looked to secure funding for such a website, tentatively to be called Ethics.gov. They also hosted meetings with watchdog groups to discuss the initiative. But despite those efforts, the administration has not produced a website to increase government transparency. "There is definitely a big distance from President Obama's Ethics.gov campaign promise and what they have done so far," said John Wonderlich, policy director for the Sunlight Foundation. "They are failing to live up to their promise, but their promise was aimed very high."
benton.org/node/43011 | Hill, The
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Verizon Wireless to Pay Millions in Refunds

Verizon Wireless said on Oct 3 that it would pay up to $90 million in refunds to 15 million cellphone customers who were wrongly charged for data sessions or Internet use, one of the largest customer refunds by a telecommunications company.

The announcement came in a statement from Verizon Wireless as the company held talks with the Federal Communications Commission about complaints of unauthorized charges and in response to questions about a possible settlement of an FCC investigation into the issue. Verizon said in its statement that the customers would receive credits from $2 to $6 on their October or November bills or, in the case of former customers, refund checks. The refunds will be paid to customers who did not have data access plans but who were nevertheless assessed one or more charges of $1.99 because of data exchanges initiated by software built into their phones, or because of charges for inadvertently going online on the phones. The FCC is likely to press Verizon to pay a penalty for failing to notify customers of the problem, which has been occurring since at least 2007, according to people close to the talks. Michele Ellison, the chief of the FCC enforcement bureau, said in a statement that the agency was "gratified to see the repayment, but for millions of Americans it's a day late and a $1.99 short."