November 2010

McSlarrow to leave NCTA

Kyle McSlarrow, president and CEO of the powerful National Cable and Telecommunications Association, will depart next spring. He will seek another position within the cable industry that will allow him to work more on "business and operating activities." The NCTA will conduct a national search to find a successor. NCTA is the principle trade association of the cable industry representing pay-tv operators that serve more than 90 percent of the nation's cable television households.

Copyright Policy Should Encourage Innovation

The Commerce Department should try to "reduce barriers to creativity and innovation" rather than "use its powers solely to explore ways to protect existing business models," Public Knowledge (PK), Electronic Frontier Foundation (EFF) and New America Foundation said in a Nov 19 filing.

In in response to the agency's review of copyright and innovation policy in the Internet economy, the three groups said, "the Department should focus on finding ways to encourage more people to create and contribute. In addition to benefits, the costs of enforcement - both financial and in increased barriers to innovate - must be considered." Citing a number of specific policy and technical issues, the groups said primary tactics used by the content industry in their quest to protect their business models, suing users and proposing technological solutions, were not effective.

They noted that, "at the height of the Recording Industry of America's (RIAA) litigation campaign in 2007 and 2008, various file-sharing venues reported stratospheric growth in visitors, searches, and software downloads." Such litigation has the risk of stifling growth of online services and forces consumers to settle cases because they can't afford not to. Similarly, technological solutions to prevent online infringement are ineffective at their assigned task and disruptive of legitimate activities, PK and EFF said.

In addition, solutions such as filtering the data traffic of users "implicate significant privacy concerns," the groups said: "Because there is no way of knowing which unknown packets are infringing and which unknown packets are noninfringing, any filter must carefully examine all packets."

The groups said the current notice-and-takedown system from the Digital Millennium Copyright Act was working, although it could be improved and that other solutions, such as a voluntary collective licensing system as used by ASCAP and BMI for traditionally recorded music, should be considered.

Why Cheaper Cable Opens A Pandora's Box

Smaller cable TV tiers are perched on the edge of a slippery slope that few ever want to go down: a la carte programming. Just that phrase is enough to make a cable executive freeze in his or her tracks, and a thousand-yard stare sets in.

Memories of 2006, when the Federal Communications Commission fixated on the possibility of allowing consumers to choose their channels, trigger shivers up and down spines. That's because a la carte nearly became a reality despite protestations that it would destroy the business model that enriched the industry for so long.

But a la carte is not the same thing as a discounted tier, you might say. True, but they're close enough. Consider the first question that will occur to any potential subscriber considering purchasing Essentials: Gee, what channels will I be getting? Then when they see what they are getting and not getting, the next natural question will be, well, why can't Time Warner Cable just let me order the channels I want? Shrinking the number of channels even at a reduced price prompts the consumer to be conscious of the very thing the operator would rather they not notice: the absurd ratio between the number of channels viewers get and what they actually watch. Bundling channels may be the foundation of the cable business model, but it's the bane of many consumers' monthly credit-card bill.

Nebraska network boosts rural connectivity

The Rural Nebraska Healthcare Network broke ground on an $18 million fiber-optic network to connect nine hospitals and their affiliated clinics. The network was funded by the Rural Health Care Pilot Program under the Federal Communications Commission, which selected the Nebraska group and 68 others in 2007 to receive a share of $417 million for broadband health networks, according to the FCC. The RNHN, a not-for-profit consortium, was scheduled to receive up to $19.3 million, the FCC noted at the time. The fiber-optic network will cross 12 western Nebraska counties and connect with two national research networks.

African-American Group Asks Pelosi to Oppose Bobby Rush

James Rucker, executive director of Color of Change, which has 800,000 online members, is asking House Speaker Nancy Pelosi (D-CA) to oppose the candidacy of Bobby Rush (D-IL), who is African-American, to become the ranking member on the House Subcommittee on Communications, Technology, and the Internet.

"Congressman Rush has repeatedly supported the interests of the telecommunications industry over the interests of regular people, and has been a fierce opponent of network neutrality," Rucker said. "I have grave doubts that Congressman Rush is capable of being an honest broker on important telecommunications matters. AT&T, America's oldest and largest telecommunications company, has long been one of the largest donors to Congressman Rush's campaign committee and leadership PAC. In addition, from 2001 to 2004 the company donated $1 million to a community center Rush founded in Chicago - an off-the-books donation that could lead one to wonder about the prospect of quid pro quo regarding the Congressman and AT&T."

During his congressional career, Rep Rush has received $78,964 from AT&T. The telecom giant is Rush's second largest career contributor, which is also true for the leading Republican candidate to run the committee, Rep Fred Upton (R-Michigan). Rush's other top donors include the National Cable and Telecommunications Association ($43,499), and Verizon ($42,000), according to the Center for Responsive Politics.

GOP to FCC: Don't Hold December Network Neutrality Vote

"We believe FCC Chairman Genachowski is leaning toward scheduling a vote to adopt net neutrality rules using Title I authority at the FCC's December 15 open meeting," wrote Paul Gallant, research analyst with MF Global, in a Nov 19 advisory. "We do not believe this decision has been finalized, but right now it appears to be the most likely scenario."

In response, House Communications Subcommittee Ranking Member Cliff Stearns (R-FL) said, "Ramming through Internet regulations would ignore the will of a bipartisan majority of Congress and the American public."

Orb brings Internet to TV, says networks can't block

A Q&A with Orb chief executive Joe Costello.

Orb is yet another company is offering a way to bring the Internet to your TV. Orb Networks launched its OrbTV Nov 18, promising to bring Hulu, Netflix and anything you watch on your desktop to the living room. But wait, how will Orb keep the television networks from blocking shows in the same way they did to Google TV? Orb hasn't brokered deals in the way that Roku has with Hulu and other distributors like Netflix have with Hollywood studios. Costello said that the networks couldn't do that because all his company's $100 box does is wirelessly connect your PC to the television set. Industry analysts say they think the networks are going straight to the browser - Chrome - on Google TV, recognizing certain properties on the browser for those users and blocking their Web shows that way.

Amazon lets gift givers put virtual books in virtual stockings

Amazon has decided to allow Amazon users to give Kindle books as gifts. Kindle books don't even have to be gifted to people who own Kindles; they can go to anyone with an e-mail address. Of course, if you decide to give a Kindle book to someone who doesn't currently use the Kindle e-book platform, it could be somewhat of an inconvenience, but Amazon hopes that those people will download apps for iPhone, iPod touch, iPad, BlackBerry, Android, PC or Mac desktop software in order to read them.

Survey Says: Data Cap Broadband Plans Are Cheaper

Broadband plans with data caps are cheaper by up to 25% than unlimited plans, according to a just-released study from the Technology Policy Institute. The institute's supporters include the National Cable & Telecommunications Association, Comcast, Time Warner Cable, AT&T and Verizon. The study also found that broadband plans with contracts are cheaper than those without them.

Google TV Privacy Policy

The privacy policy for Google TV is eight pages long. Google says that, for now, it is not collecting data on TV viewing histories, but that it might to do so in the future. Google TV, however, does know when you're watching TV and does collect certain "non-personalized" information about your online and TV interests.