November 2010

Supreme Court won't hear challenge on campaign disclosure

The Supreme Court has declined to review a new challenge to campaign finance disclosure laws one day before an election marked by a flood of undisclosed spending on political advertising.

The Court denied a petition by SpeechNow.org aimed at striking down federal laws and regulations requiring individuals who want to pool their money and buy political ads to form political action committees (PACs) and register with the federal government. In March, the US Court of Appeals for the DC Circuit ruled the government could not limit contributions to groups like SpeechNow.org, but upheld the requirement that the group become a PAC in order to spend money on political advertisements to support or oppose candidates.

National Broadband Plan author talks about his regrets

A Q&A with Blair Levin, the Federal Communications Commission staffer who led the team that wrote the National Broadband Plan.

He said that while the FCC rolled out the plan, it could have done a better job of explaining some of the ideas behind it as opposed to simply the policy recommendations. The most important thing to understand, he said, is that broadband is not important in and of itself. It is important because it is the vehicle of knowledge exchange, which turns out to be an incredibly important driver of economic and job growth and critical for a civic society.

He noted that the conventional wisdom says the primary metric for measuring the validity or power of a national broadband plan is the speed of the wireline network to the most rural of residents. The correct approach, however, is that it's not a primary metric, it's an ecosystem. And if you think there's a single factor that measures something, you don't understand how what you want is a constantly improving platform for knowledge exchange. So you want networks, devices, applications and, most importantly, people interacting to constantly improve how they operate. The one that's most wrong is the speed. Speed is the input and use is the output. We should be thinking about how we use it because the real upside is not in increasing speed, it's in increasing the applications. A third thing is that it's almost always about wireline and it turns out wireless is going to be the key driver of growth in the next decade. On the institutional side, speed is incredibly important but what we found was for most of the country speeds are actually pretty good. I would say that 4G is going to end up being more important to more people over the next couple of years than increases in wireline speed.

North Carolina e-Strategy report

e-NC and SNG today the findings of a comprehensive study of residents and businesses in the state of North Carolina. In all, 30,000 households and 70,000 businesses and organizations were surveyed to uncover utilization of broadband and e-solutions statewide, with 1,492 households and 6,266 businesses and organizations responding.

The e-Solutions Benchmarking and accompanying e-Strategy report from SNG was funded by a grant to the e-North Carolina Authority by the National Telecommunications and Information Administration (NTIA) of the Department of Commerce. The SNG study, conducted between February and October 2010, revealed the potential of broadband for competitiveness and economic opportunity:

  • Nearly one in five (18%) of new jobs were created as a direct result of Broadband Internet. Small businesses (less than 20 employees) are especially dependent on Broadband Internet as 28 percent of new jobs in that sector are attributed to using the Internet.
  • More than half of all businesses (54%) said that they would not be in business if they did not have broadband while two in five (41%) would have to relocate if broadband was not available in their community;
  • The number of households either currently running (31%) or planning to run a business from their home in the next twelve months (14%) is nearly half (45%) of North Carolina's broadband
  • households;
  • Even more broadband households are either now using (41%) or planning to use (24%) broadband to sell items online. That's nearly two-thirds (65%) of broadband households using it to at least supplement their income;
  • Most (85%) of home-based businesses said that broadband was essential to their business.

The e-Strategy report revealed clear and direct paths to further leverage broadband and available resources to expand broadband's reach. E-NC will be tackling the state's challenges with strategies for:

  • Better connectivity in un-served and under-served communities
  • Mobile broadband to extend flexibility and reach
  • Driving broadband adoption
  • Supporting adoption of new and ground-breaking e-solutions
  • Collaboration, utilizing stakeholders, community networks and anchor institutions

Were broadband stimulus wireless awards just tokenism?

The WiMAX Forum put a positive spin on its recent announcement noting that 40 companies won funding for WiMAX projects from the Rural Utilities Service in the second round of the broadband stimulus program.

The decision-making process for all broadband stimulus awards was completed late last month. "WiMAX is the ideal technology to help bring broadband to those who currently can't get access while keeping service and device costs low," said WiMAX Forum President Ron Resnick in the announcement. But despite the WiMAX Forum's cheeriness, wireless projects did not fare as well in the broadband stimulus program as landline projects. The vast majority of the 320 broadband stimulus awards that the RUS made in two funding rounds went for last mile projects -- and the largest share of those awards went to landline projects, typically based on fiber.

The RUS may have favored fiber-based projects because it believed they would be more future-proof, supporting the highest speeds in the long run. But the agency may have been reluctant to shut out wireless applicants totally. Perhaps the granting of a handful of awards for broadband wireless just tokenism -- enabling the agency to say it made awards for all different types of technology.

Privacy bills will survive election storm

Though some tech-related bills will live or die depending on this week's election results, online privacy legislation is likely to survive the midterm storm, according to observers who track the issue.

House Democrats have pushed for privacy legislation that would force online marketers to disclose when they are following customers' activities online. But the effort is likely to have strong prospects for passage in the next Congress no matter which party controls the chamber. House Communications Subcommittee Chairman Rick Boucher (D-VA) has championed stricter privacy rules this year, drafting a bill to rein in online marketers. But Rep Boucher is in a tight race to retain his seat against Republican Morgan Griffith. If Boucher is defeated on Tuesday, online privacy advocates could lose one of their most effective allies in the House. But telecom lobbyists say that even if Democrats lose control of the House on Tuesday, Republicans are likely to press ahead with online privacy legislation in the next Congress.

US online spending rose 9 percent in Q3: comScore

US online spending rose 9 percent to $32.1 billion in the third quarter, according to market research firm comScore. It was the fourth straight quarter of year-over-year growth following the U.S. economic downturn.

The best-performing categories during the quarter were books and magazines, excluding digital downloads, computers and consumer electronics. Growth in online shopping, which makes up just a fraction of the overall retail pie, has outperformed brick-and-mortar sales growth during the downturn and the aftermath. Last month, comScore forecast that e-commerce spending during the holiday season could rise 7 percent to 9 percent if unemployment does not worsen.

The National Retail Federation, meanwhile, has forecast that holiday retail sales, which exclude online sales, will rise 2.3 percent to $447.1 billion.

Google sues US over government contract exclusion

Google is suing the US government for excluding its products from being considered for a five-year contract worth about $59 million to upgrade the Department of the Interior's email system.

In a complaint filed on Oct 29, Google said the government abused its discretion and acted in a manner that was "arbitrary and capricious" by only considering sales proposals with email technology based on Microsoft Corp technology. The suit comes as Google, the Internet search leader, steps up efforts to court federal, state and local government customers for its online email and productivity products. Google said the Department of the Interior's move ran contrary to "assurances to Google representatives that DOI would conduct a full and open competition for its messaging requirements."

Last Fall for Broadcast?

Ask media buyers if they believe broadcast TV has irredeemably slipped into senescence, and you'll get an earful. There's no denying that broadcast and cable ratings have been passing each other heading in opposite directions for a decade, and it's only a matter of time before a TNT or USA Network chalks up eight-figure deliveries. As such, cable nets are beginning to counter-program in the fall, a strategy that was once tantamount to ratings suicide.

Technology Can Be a Tool for Student Success, and a Distraction at Home

Smartphones, laptops and Internet access are becoming so ubiquitous that places without them, such as some U.S. grade schools, seem backward by comparison. Much fanfare has been made about the digital divide -- the gap between those who have access to IT and those who have very little access or none at all. Researchers study this divide, often at the grade-school level, to see how technology -- or a lack thereof -- affects student performance. The focus often is on how broadband access and computers impact students' work on campus, although recent research incorporates the digital divide's impacts in students' after-school and home lives. Surprisingly some researchers are finding that the digital divide's impact at home may not be as great as is commonly assumed.

"The problem that kids are facing is that when high-speed Internet service comes into their home, it's leading them to do things like play games online, and chat or Facebook with their friends -- and it's actually leading them to spend less time on their homework," said Jacob Vigdor, professor of public policy and economics at Duke University.

Will the next wireless infrastructure be humans wearing radios?

A team of Irish researchers are studying how humans can become the next wireless infrastructure, by wearing sensors, radios and gateways linked together in "body-to-body" networks.

With redesigned antennas, low-power radios, and new network protocols, potentially huge, constantly shifting body networks could create an "ultra-high-bandwidth mobile infrastructure." Such networks could offload even large file transfers from cellular networks, by making use of parallel transmission and routing through a mesh of body nodes. The body node can link to fixed access points, gateways, or cellular networks when needed. The work on "body-centric" communications has been a focus of the Institute of Electronics, Communications and Information Technology at Queen's University, Belfast, Northern Ireland. The researchers recently were awarded a grant of about $800,000 from the Royal Academy of Engineering and the Engineering and Physical Research Council.