November 2010

Court Rules Against Arbitration In Lawsuit Vs. ISP Stemming From NebuAd Partnership

A court has handed a defeat to Internet service provider Bresnan Communications in privacy litigation stemming from its partnership with defunct behavioral targeting company NebuAd. In a ruling issued last week, US District Court Judge Richard Cebull rejected Bresnan's attempt to send the potential class-action lawsuit to arbitration. Bresnan had argued that consumers had agreed in a clause in their subscriber agreement and acceptable use policy to resolve all disputes in arbitration, but Cebull ruled that the term wasn't valid. "The agreement was presented by defendant to plaintiffs on a take-it-or-leave-it basis," he wrote. "The arbitration provision in the agreement was not conspicuous nor was the consequence of accepting it explained to plaintiffs. Plaintiffs were not sophisticated business persons that could have been presumed to know and understand the effect of an arbitration provision." The decision is just the latest in a string of court rulings stemming from NebuAd's ill-fated behavioral-advertising partnership with Internet service providers.

Wi-Lan sues Comcast, Time Warner Cable, Charter

Technology licensing firm Wi-Lan Inc said it has initiated a patent infringement litigation against Comcast, Time Warner Cable, and Charter Communications in a US federal court.

The Canadian company alleged that the three US companies continued to infringe its patent by offering to sell, operate, advertise and market cable systems and cable modems. The case is filed in the U.S. District Court for the Eastern District of Texas. The company, which said its litigation expenses rose to C$7.0 million in the third quarter from C$4.3 million a year ago while announcing its third-quarter results, is also tied in other patent infringement cases against various other companies.

Popular Science's "100 Best Innovations of the Year"

Popular Science is out with its annual "100 Best Innovations of the Year." Reliability cool any year, this year's list is also notable for a number of innovations that stand to make technology more accessible and lives easier for the disabled.

Restoring FCC Authority to Make Broadband Policy: A Way Forward After Comcast v. FCC

This report outlines the legal case for the Federal Communications Commission to restore its authority over broadband by reclassifying it under Title II of the Communications Act.

The paper argues that this is the most reasonable and legally sound way for the FCC to move forward in the wake of the Comcast v. FCC case, in which the U.S. Court of Appeals for the D.C. Circuit cast doubt upon the FCC's authority over broadband under Title I of the Communications Act. The paper questions claims that the agency could restore its authority under Title I. It also argues that waiting for congressional action would cause the United States to fall further behind the rest of the world in broadband quality and adoption. Unless it reclassifies broadband, the FCC's ability to extend broadband access to rural and low-income communities, to protect the Internet from phone and cable companies seeking to construct toll roads online, and to ensure that the United States remains at the forefront of technology and innovation is in jeopardy. If the Commission proceeds under Title I, its authority to achieve these goals will be challenged in court under a legal framework that has already been questioned.

Maslow's Hierarchy of Broadband Needs

[Commentary] Maslow's hierarchy of needs, starting at the bottom:

  1. Physiological: To be able to use broadband, you need to first have it be available to you.
  2. Safety: Broadband must be stable and reliable for users to feel secure using it. And users must know enough about how to use the Internet that they feel safe navigating it.
  3. Love/belonging: Other than providing access to the world's information and entertainment, the biggest reason people use the Internet is to connect with others individually and as a community.
  4. Esteem: Broadband users get a sense of accomplishment and validation.
  5. Self-actualization: A state in which broadband users are able to continue reaching to achieve their full potential.

Commerce Dept Gets Low Mark On International Consumer Privacy Protection

The Commerce Department's work on consumer privacy protection in the international arena reflect "indifference and neglect," according to a new report released by the World Privacy Forum.

Through examining an agreement with Europe to protect personal data, known as the "Safe Harbor Framework", the study found that consumer protection has not been a significant concern or priority for the Commerce Department. Moreover, "The Department's history with the Safe Harbor program also indicates a lack of rigor regarding enforcement and compliance in the privacy programs it already administers," said Pam Dixon, executive director of the World Privacy Forum. Established in 2003 and led by Dixon, the World Privacy Forum is a nonprofit focused on conducting research and analysis about privacy issues.

The study consistently showed "that many and perhaps most Safe Harbor participants are not in compliance with their obligations under the Safe Harbor Framework."

The World Privacy Forum expressed concerned that given the Commerce Department's past performance, it won't effectively protect consumers in the future as the issue gains importance and prominence.

What is right price for high-end broadband?

[Commentary] What are we to make of Verizon's new 150 Mb/s broadband tier? Certainly any Internet user would love to gain access to that raw bandwidth. But how many households will be willing to spend the $200 per month or so it will cost to buy the service? That, of course, is the billion-dollar question.

And Verizon is aware the answer to it will in large part determine the future of its FiOS service offerings. In an interview with John Schommer, who is responsible for building the broadband product mix for Verizon, it became clear the company is at a crossroads in its pricing strategies. For now, it is offering the 150 Mb/s service largely as a stand-alone service (or combined with voice); it won't be available as part of any triple- and quad-play bundles. That's likely to help the carrier figure out the true demand for the service in and of itself (not to mention help it control the roll-out and costs of delivering the new service, which requires updated GPON electronics). Verizon is also proceeding cautiously to understand the potential substitution impact of this new service. Will 150 Mb/s broadband service -- enabling easy downloading of over-the-top HD content -- eat into FiOS TV revenue streams? The answer is likely yes, but it's important for the operator to understand exactly how that substitution will work among early adopters before it puts at risk the bulk of its video programming revenue.

Australia Broadband Debate Heats Up

Tension rose over the privatization of the nation's planned 43 billion Australian dollar (US$42 billion) national high-speed Internet network, as a Senate debate on competition legislation began. Australia's center-left Labor government said it remains "firmly committed" to privatizing the fiber broadband network once it is completed.

The statement followed news from the Greens party Monday that it reached a deal with the government to support laws designed to curb the ability of dominant provider Telstra Corp. to compete with the national network. The Greens support came in exchange for a promise that NBN Co., the newly formed state-owned network operator, won't be privatized without parliamentary approval. That raised questions about how the government would recoup some A$26 billion in taxpayer funds expected to be used to build the network, which is designed to deliver high-speed communications to 93% of Australian homes. Communications Minister Stephen Conroy said the government will still sell its stake in NBN, subject to market conditions but that Canberra is "mindful" of lessons learned in the privatization of Telstra. That process, overseen by the then-conservative government, created a telecommunications juggernaut against which other companies struggled to compete. The government wants to dodge the pitfalls of the Telstra privatization, "including avoiding higher prices in regional Australia," he said. Any NBN sale will be subject to parliamentary approval and an inquiry by the country's productivity watchdog.

Viacom to Google TV: no MTV for you

Viacom has blocked full-length episodes of shows it runs on the Internet to users of Google TV, becoming the fifth television programmer to withhold content on the search engine's new Internet television platform.

Viacom, which owns MTV, Comedy Central and BET, said Internet users can still access its shows on its Web sites through desktop computers. But users of Google TV, a platform that combines regular TV with a Web browser, aren't able to find those Internet shows through the company's new service. Viacom said it is evaluating how to turn Google's TV platform into a business opportunity. It wouldn't elaborate on the decision. "We're blocking access to our full episode content from Google TV's Web browser," the company said. "We continue to evaluate Google TV to identify opportunities where it may make sense to optimize our Web content for the platform."

OpenDNS: We're being blocked, FCC should act on net neutrality

A Q&A with OpenDNS founder David Ulevitch.

He says the San Francisco domain name service is already being blocked by Verizon Wireless. He fears other Internet service providers trying to compete with it could do the same. Since it launched with a couple million dollars in angel investment four years ago, OpenDNS has attracted 20 million customers - consumers and businesses such as Staples, Century 21 and Fuji Film - who prefer the service's domain name look-up service to that of their Internet service provider. Why? Ulevitch says the company is able to more quickly translate Web page addresses like www.washingtonpost.com to The Post's IP address to serve up the site to users. Its fail rate is zero, compared with ISPs, he says. Carriers have caught on to the value of their service. Open DNS is able to collect a lot of data about users and their Web surfing habits to serve up targeted ads for users who volunteer to have that information tracked.