October 2010

Ad Group Unveils Plan to Improve Web Privacy

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.

Internet monitoring plan threatens privacy

[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.

Fear and Favor

[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.

The Corrosive Influence of Over-Concentrated Corporate Power

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."

Google's CEO: The Laws Are Written by Lobbyists

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.

Texters, you'd be better off driving drunk

[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.

Casinos Now See Online Gambling as a Better Bet

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.

Brothers Await Broad Use of Medical E-Records

There is no silver bullet for reforming America's health care system, but medical experts have long agreed that digital patient records and electronic prescribing can help improve care and curb costs.

It seems straightforward. Just combine technology skills with investment money, and then develop innovative products. But to date, the push for a digital revolution in doctors' offices has brought mostly frustration for the many companies big and small that are trying to conquer the field.

Just ask the Doerr brothers — John Doerr, the well-known venture capitalist who was an early backer of Google and Amazon, and Dr. Tom Doerr, a physician and software designer. Dr. Doerr founded a software company in 1999, beginning with an electronic prescribing product and later adding electronic health records. His brother is the largest investor. After more than a decade, the venture has fewer than 500 doctors using its software. The experience, Mr. Doerr said, has been "a long, slow march." And Dr. Doerr conceded, "It's been a lot harder getting to a business that is self-sustaining than I had imagined."

BT to let consumer demand shape superfast broadband

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.

Crisis or Opportunity: A Regulatory Crossroads

IPI Communications Summit
Wednesday, October 6, 2010
9:00 AM to 1:00 PM

Evening Reception (Eve of Summit)
Tuesday, October 5, 2010
5:30 pm to 7:30 pm
Capitol Visitor's Center, Room HVC-201
Capitol Hill
Washington DC

Keynote Address
Veronica Bloodworth, Vice President, Network Program Management, AT&T

Panel: "Doctors On Call: Innovations in Mobile Health"
Christopher Wasden, Ed.D., Managing Director Strategy and Innovation, PricewaterhouseCoopers, LLP
Anand K. Iyer, Ph.D., President and COO, WellDoc., Inc.
Merrill Matthews, Ph.D., IPI Resident Scholar--Moderator

Keynote Address
Brett Swanson, President, Entropy Economics LLC, Visiting Fellow, Digital Society

Panel: "Smart Systems: A Brilliant Idea"
Larry Plumb, Ph.D., Executive Director, Emerging Issues and Technology Policy, Verizon
Steve Pociask, President, American Consumer Institute

Insider Discussion: "A Global Perspective of Wireless and Innovation"
Bright Simons, Coordinator, mPedigree Network
Tom Giovanetti, IPI President