December 2010

Montana Public Service Commission Approves CenturyLink-Qwest Merger

The Montana Public Service Commission (PSC) unanimously approved the pending merger between CenturyLink and Qwest Communications.

The PSC's approval of the merger in Montana included an agreement on public interest benefits the companies reached with the Montana Consumer Counsel, the Montana Department of Administration, as well as several competitive carriers in the state relating to various retail and wholesale issues. As part of the approval process, the companies committed to investing a minimum of $10 million in broadband infrastructure in Montana over five years. When the merger is completed, the combined company will serve nearly 270,000 access lines throughout the state. It will have a presence in all of Montana's largest communities, as well as many towns and rural areas.

Navy Pier blames Groupon for cutting into Winter Wonderfest revenue

Navy Pier officials blame Groupon for a drop in revenue for its biggest annual festival, though they credit the daily-deal site for generating more traffic.

With Winter Wonderfest ticket sales up 12% in volume, but event revenue down about 8% so far, Navy Pier officials are reconsidering whether future partnerships with Chicago-based Groupon are worthwhile. Groupon offered Winter Wonderland tickets for $9, half the price, one day in early November. Mark Thompson, senior director of marketing for the Pier, estimated some 7,500 Groupons were sold that day — a 283% increase from the same Groupon deal offered for last year’s Wonderfest. Overall ticket sales are running 12% ahead of last year to date. But revenue is down considerably: Wonderfest has netted $420,000, compared with $455,000 during the same period in 2009. That’s because Navy Pier, like most Groupon clients, agreed to offer 50% off the full price and then split the proceeds 50-50 with Groupon.

American Apparel Source Raves About A $3 Million Groupon Deal

We've all heard the scary stories of businesses getting clobbered by Groupon deals that brought in more customers than a business can deal with. These horror stories suggest that Groupon customers won't spend more than they have to in order to use their coupons. But a source from American Apparel says he's seen sales numbers following his company's deal with Groupon "that disprove many of the ongoing doubts about Groupon."

He says customers who purchased the $25 Groupon – worth $50 – ended up spending an average of $70 once they cashed in the deal. Our source says the best part of the deal, though, was how American Apparel was able to add a whole bunch of Groupon customers to its own email list. "The killer was email address acquisition... We converted approximately 25% of in store redemptions into signing up for our email list... which is on track to generate an additional five to six figures in online revenue."

Consumer Group Sues McDonald's Over Happy Meal Toys

The Center for Science in the Public Interest filed a lawsuit against McDonald's in state court in California to stop the company from advertising toys with Happy Meals.

It's no sure thing that the consumer group will get its way in court, of course, but the lawsuit ups the pressure on the fast-food chain over the combination of food and toys that appeal to kids. McDonald's defends the meals. The lawsuit asserts that under California's consumer protection laws, McDonald's toy advertising is deceptive. It targets children under 8 years old who don't have the ability to understand advertising. But the real concern for the group, and for parents, CSPI says, is that McDonald's advertising makes kids beg their parents to buy food that's high in calories, sugar, fat and salt, which contributes to obesity. But CSPI is not asking for damages, just for McDonald's to stop advertising toys.

San Jose rejects regional broadband plan

The San Jose City Council unanimously rejected the city’s participation -- at least for now -- in a regional broadband system, saying it has been marred by a lack of transparency, unknown costs and other problems.

The "Bay WEB" program, overseen by the Bay Area chapter of a federally-funded security group, would create a regional public-safety broadband system. Motorola Inc. applied for and received a nearly $51 million grant from the U.S. Commerce Department this past September to implement the project. San Jose city officials have said the security group — Urban Area Security Initiative in San Francisco — has not followed standard government contracting methods. Among other things, city officials say neither the group’s staff nor its general manager sought board approval for various decisions, including the reallocation of $2 million that its board — known as the "Approval Authority" — set aside last year for San Jose. That same amount of money was also redirected from the cities of Oakland and San Francisco, also without board approval. The Approval Authority has seven members, including a San Jose assistant fire chief, Oakland's director of emergency services and the San Francisco Fire Department’s deputy chief of administration. Meanwhile, San Jose officials have also noted that some staff members of the security group are former Motorola employees.

Net-Nipping

Turner Broadcasting may have stumbled upon a pernicious phenomenon: the decreasing number of consumers who jettison broadband access while holding onto their cable subscriptions.

There's a relatively steady increase this year in US homes that have both cable and Internet access, which would certainly poke yet another hole in the notion that there’s some new breed of consumers opting to go it alone with Internet access to meet their video needs. But there seems to be a more pronounced decrease at work in the number of people shedding broadband while still keeping cable. From this moment on, I christen this group “net-nippers.” Because no trend should bear the indignity of going without a cute name.

Federal guidance on WikiLeaks raises legal questions

The government might not have the right to restrict federal employees and contractors from viewing on their personal home computers the classified material that WikiLeaks posted, said Kathleen Clark, a law professor at Washington University in St. Louis School of Law with expertise in whistleblower protections and national security.

On Dec. 3, OMB's general counsel office sent a notice to agency general counsels instructing them to remind employees they should not view materials that WikiLeaks posted because the information remains classified. The memo said federal employees and contractors "shall not . . . access documents that are marked classified," on computers that access nonclassified government systems, including employees' or contractors' personally owned computers. Clark said the guidance is unclear as to whether employees could access the leaked documents on a personal computer that does not access government systems.

Designing a Digital Future: Federally Funded Research and Development in Networking and Information Technology

President's Council of Advisors on Science and Technology
Thursday, December 16, 2010,
2:15-3:15 pm
http://www.whitehouse.gov/sites/default/files/microsites/ostp/NITRD-even...

The President’s Council of Advisors on Science and Technology (PCAST) will release and discuss its report entitled “Designing a Digital Future: Federally Funded Research and Development in Networking and Information Technology.” This congressionally-mandated report assesses the status and direction of the Federal Networking and Information Technology Research and Development (NITRD) Program.

The event will be moderated by Aneesh Chopra, Federal Chief Technology Officer, and feature opening remarks by Vivek Kundra, Federal Chief Information Officer. The report will be summarized by the co-chairs of PCAST’s NITRD working group, David Shaw, Chief Scientist of D. E. Shaw Research, and Ed Lazowska, Professor of Computer Science & Engineering at the University of Washington. Susan Graham, a working group member, will join the working group co-chairs in answering questions about the report. Independent discussants Robert Atkinson, President of the Information Technology and Innovation Foundation, and Tom Leighton, Professor of Applied Mathematics at the Massachusetts Institute of Technology, and Co-founder and Chief Scientist of Akamai Technologies will provide comments on the report. Press and the public will have an opportunity to ask questions following the presentations.

Register for the event: http://www.whitehouse.gov/administration/eop/ostp/pcast/meetings/registr...

Webcast: http://www.tvworldwide.com/events/pcast/101216/



December 15, 2010 (Network Neutrality Remains on FCC Agenda)

BENTON'S COMMUNICATIONS-RELATED HEADLINES for WEDNESDAY, DECEMBER 15, 2010

To view Benton's Headlines feed in your RSS Aggregator, visit http://www.benton.org/index.php?q=taxonomy/term/6/all/feed

For upcoming media policy events, see http://benton.org/calendar


NETWORK NEUTRALITY
   Network Neutrality Remains on FCC Agenda
   Check FCC Chairman Genachowski’s list
   FCC Chairman Genachowski: Dec. 21 Net Neutrality Vote "Essential"
   GOP FCC commissioners gin up opposition to network neutrality
   Close Title II, Today
   FCC Chairman Touts Open Network Neutrality Proposal To Students

MORE ON INTERNET/BROADBAND
   Can America Afford FCC Chairman Genachowski?
   Sen Reid bets on Internet poker as odds dwindle

MEDIA OWNERSHIP
   Time to loosen Google's grip?
   See also:France Says Google Is Main Cause Of News Publishers’ Woes
   Sanders Calls On Justice To Block NBC-Comcast Merger
   Cablevision Completes Bresnan Acquisition

GOVERNMENT & COMMUNICATIONS
   Appeals court: Feds need warrants for e-mail
   Air Force Blocks Media Sites
   John Pilger: WikiLeaks, Web to revolutionize reporting

BROADCASTING & CABLE
   DirecTV To Pay $14.25M, Plus Restitution, To Settle Complaints
   Sanders Calls On Justice To Block NBC-Comcast Merger
   Mr. Smith Goes to Washington to Kill Community Radio
   Phoenix: FCC's AllVid proposal will do nothing to spur retail market in set-tops
   Watch this: the AllVid Proceeding
   DVR Penetration Means Time-Shifted Viewing Is Up
   Cablevision Completes Bresnan Acquisition

WIRELESS
   Why is the FCC Talking About Text Messaging?
   Spectrum top priority for electronics trade group

CYBERSECURITY
   FBI Memos Reveal Cost of a Hacking Attack
   Aftermath Of WikiLeaks Flap Underscores Vulnerabilities Of The Cloud

POLICYMAKERS
   Rep Upton names Gary Andres Energy & Commerce staff director

HEALTH
   Health IT Policy Committee considers PCAST recommendations
   Panel Set to Study Safety of Electronic Patient Data

STORIES FROM ABROAD
These headlines presented in partnership with:

   Partnership for Innovation
   France Says Google Is Main Cause Of News Publishers’ Woes
   China Is Serious About Intellectual Property
   Ofcom redefines broadband markets as government ups rural rollout funds by GBP50 million
   UK needs universal fiber optic broadband now, says expert
   UK Mobile Phone Operator to Offer Unlimited Internet Access
   Russia targets 60-80% broadband penetration in 5 yrs
   UK local TV will need subsidy, report finds
   BBC will have to cut services, chairman warns
   Canadian Railway to Upgrade In-Train Wi-Fi Services

MORE ONLINE
   Facebook Draws a Map of the Connected World
   Smart phones in combat: Army may issue iPhones and Android phones
   Cable in the Classroom Adds Online Tools

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NETWORK NEUTRALITY

NET NEUTRALITY ON AGENDA
[SOURCE: Federal Communications Commission, AUTHOR: ]
The Federal Communications Commission confirmed the following items will be voted upon at the upcoming meeting on Tuesday, December 21. The FCC will consider:
1) a Notice of Inquiry concerning the transition from the current, voice-only 911 system to a broadband-enabled, next-generation 911 system.
2) a Report and Order adopting basic rules of the road to preserve the open Internet as a platform for innovation, investment, competition, and free expression.
benton.org/node/46497 | Federal Communications Commission
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CHECK GENACHOWSKI'S LIST
[SOURCE: Connected Planet, AUTHOR: Susana Schwartz]
[Commentary] I wouldn't want to be in Federal Communications Commission Chairman Julius Genachowski’s position as the Dec. 21 deadline for a network neutrality order nears. It’s an unenviable position as he tries to balance demands for an open Internet with the need for some sort of “prioritization” or “discrimination” for network operators in need of sustainable business models. He knows that his name will be inextricably tied to whatever this order ultimately says and strives to do, and he knows many broadband operators are ready to pounce with lawsuits if regulations go beyond the basics to which they reluctantly agreed (e.g., transparency and arbitrary blocking). He'll no doubt land in federal court whether or not there is a reclassification of broadband as a “Title II” communications service as network operators struggle to manage their networks, and as net-neutrality advocates push for continued openness of both fixed Internet and mobile infrastructures.
benton.org/node/46464 | Connected Planet
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DEC 21 VOTE "ESSENTIAL"
[SOURCE: Multichannel News, AUTHOR: John Eggerton]
Federal Communications Commission Chairman Julius Genachowski said that it is "essential that we move forward next week to adopt the first enforceable rules of the road to protect Internet freedom." Talking about "seizing the opportunities" of broadband, the chairman said one way to do that is to "reserve the freedom and openness of the Internet." He said his order was essential to protecting free speech and creating jobs. "That's why the FCC is moving to preserve the open Internet," he told his audience, though many of the regulations won't be applied to mobile broadband, according to the initial draft of the order. Chairman Genachowski said he had "broad support" for the effort, including from carriers. But that support is more for what the item is not, which is a Title II reclassification those carriers called a "nuclear option." Carrier support for the network neutrality regulations under Title I has come with the caveat that it is unnecessary and no regulations would be preferable.
benton.org/node/46461 | Multichannel News
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MCDOWELL, BAKER GIN UP NET NEUTRALITY OPPOSITION
[SOURCE: The Hill, AUTHOR: Sara Jerome]
Federal Communications Commission members Robert McDowell and Meredith Baker attended a meeting of Americans for Tax Reform on Dec 13, where they advocated against the FCC Chairman Julius Genachowski's network neutrality proposal. The McDowell-Baker effort was part of an off-the-record, weekly meeting of free-market activists. About 30 people attended. The pair warned that the network neutrality proposal could be more onerous than industry is expecting and might be significantly stronger than the House Commerce Committee Chairman Henry Waxman legislative framework it was based on. It seems possible that the two commissioners may be trying to steer free-market activists to oppose the policy in the absence of guidance from companies such as Verizon, AT&T and the National Cable and Telecommunications Association.
benton.org/node/46440 | Hill, The
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BAKER: CLOSE TILE II PROCEEDING
[SOURCE: Federal Communications Commission, AUTHOR: FCC Commissioner Meredith Baker]
[Commentary] We are a week away from the Net Neutrality vote. Given the apparent decision not to use Title II to justify Net Neutrality rules, the Chairman should close Title II today. If not, the Commission should provide a public rationale to consumers and investors why such a jobs-killing proposal remains open. What certainty can the Commission provide industry if there remains an open and active docket under which three Commissioners—at any time—could flip a switch and treat broadband as a monopoly-era service? By closing Title II, the Chairman can signal definitively to the Internet sector that our widely successful pro-growth, pro-investment approach to broadband under Title I remains the right policy for today and tomorrow’s Internet.
benton.org/node/46460 | Federal Communications Commission | Broadcasting&Cable
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FCC FORUM
[SOURCE: National Journal, AUTHOR: Juliana Gruenwald]
Federal Communications Commission Chairman Julius Genachowski made a pitch to a group of Washington technology high school students for his net neutrality proposal, saying regulators must take action to preserve the openness of the Internet in order to allow future entrepreneurs to develop the latest innovations. Speaking at McKinley Technology High School during a forum on technology challenges facing teens, Chairman Genachowski discussed the importance of developing digital skills to compete in the 21st century. "The Internet enables anyone anywhere to dream big and bring those dreams to life," he said, noting how Facebook CEO Mark Zuckerberg developed the social networking site in his dorm room. Chairman Genachowski added that, "It's essential to move forward next week to adopt the first enforceable rules of the road to protect Internet freedom."
benton.org/node/46434 | National Journal | Chairman Genachowski
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MORE ON INTERNET/BROADBAND

CAN AMERICA AFFORD FCC CHAIRMAN GENACHOWSKI?
[SOURCE: Financial Times, AUTHOR: Eli Noam]
[Commentary] Two years after he was nominated to chair the Federal Communications Commission, what does Julius Genachowski have to show for his efforts? Very little. My problem with this FCC is not policy but its inaction and the uncertainty it engenders. The FCC has held dozens of public hearings. It passed a few decisions, often on issues that were extensions of Clinton/Gore or Bush era FCCs. It issued a report on broadband. It spent a lot of its time on the non-discriminatory use of the Internet infrastructure (“net neutrality”), which is important in the long run but secondary to the creation of a nationwide infrastructure in a recession. And in any event, after much spinning of wheels, it got nowhere on this issue. Is Chairman Genachowski to blame? Yes and no. The problem today is that regulatory delay is costlier than ever. Not only is the information environment much larger than in the past, it is also much faster-moving, and more central to the national economy. The cause of this is technological change, which progresses at the sizzling rate of “Moore’s law”, while the policy process barely moves at all. If anything, the FCC has become, in recent years, more politicized and dysfunctional. And this is what is happening. While it polishes its elaborate proceedings, the economy is stagnating and the information sector, the growth engine in the 1990s, is on hold. The FCC is becoming the anti-stimulus agency. What, then, should Julius Genachowski do in the next two years? The answers are short and simple:
In terms of procedure: Set policies and dates. There are a lot of good policy proposals out there and even more worthy opinions, but now, after two years of immersion, it is high time to pick a few, clear priorities, avoid distractions, and make decisions tirelessly under ambitious deadlines.
In terms of substance: focus on nationwide broadband infrastructure. One of the FCC’s few accomplishments, prodded by Congress, was a national broadband plan. But this excellent plan has been crawling along in its implementation. The FCC claims that it is pushing sixty proceedings to do so, but if one looks more closely, many of them are clean-up operations the agency was doing anyway. Missing in the bureaucratic detail is the big picture of a national purpose, and a sense of urgency. It is doubtful that countries like Korea or Japan, which upgrade their networks aggressively, go about it in this way.
benton.org/node/46495 | Financial Times
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REID PUSHING FOR ONLINE GAMBLING
[SOURCE: Reuters, AUTHOR: Deena Beasley]
Senate Majority Leader Harry Reid (D-NV) is pushing for a last-minute bill to legalize Internet poker -- at least for operators of existing brick-and-mortar casinos. The measure is seen as a windfall for Las Vegas-based companies like MGM Resorts International, which closed down its online gambling operations nearly a decade ago amid regulatory uncertainties, and Caesars Entertainment, which operates the World Series of Poker. The bill, now under discussion. would legalize only Internet poker, not games like roulette or where players are betting against the casino. With Republicans set to take control of the U.S. House of Representatives in January, the casino industry believes the next couple of weeks are all that is left before the window of opportunity for legislation closes for at least several years. That is because groups like the Southern Baptist Convention and some key Republican lawmakers remain opposed to online gambling.
benton.org/node/46452 | Reuters
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MEDIA OWNERSHIP

TIME TO LOOSEN GOOGLE'S GRIP?
[SOURCE: Washington Post, AUTHOR: Steven Pearlstein]
[Commentary] In case you hadn't noticed, Google isn't just a Web search company any longer. In addition to online advertising, it's moving into operating system and application software, mobile telephone software, e-mail, Web browsers, maps, and video aggregation. It's also in the process of assembling the world's biggest digital library of books and visual materials. The question now is how much bigger and more dominant we want this innovative and ambitious company to become. Google has already achieved a near-monopoly in Web search and search advertising, and has cleverly used that monopoly and the profits it generates to achieve dominant positions in adjacent or complementary markets. Success in those other markets, in turn, further strengthens Google's Web search dominance and reduces the chance that any other competitor will be able to successfully challenge it. It's easy to see why Google would want to use well-chosen acquisitions to try to delay or prevent that next round of creative destruction. What's harder to understand is why we would let them do it.
benton.org/node/46491 | Washington Post
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GOVERNMENT & COMMUNICATIONS

WARRANTS NEEDED TO SEE E-MAIL
[SOURCE: C-Net|News.com, AUTHOR: Declan McCullagh]
Police must obtain search warrants before perusing Internet users' e-mail records, a federal appeals court ruled today in a landmark decision that struck down part of a 1986 law allowing warrantless access. In case involving a penile-enhancement entrepreneur convicted of fraud and other crimes, the Sixth Circuit Court of Appeals said that the practice of warrantless access to e-mail messages violates the Fourth Amendment, which prohibits "unreasonable" searches and seizures.
benton.org/node/46456 | C-Net|News.com | EFF | ars technica
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AIR FORCE BLOCKS SITES
[SOURCE: Wall Street Journal, AUTHOR: Spencer Ante, Julian Barnes]
The US Air Force is blocking its personnel from using work computers to view the websites of the New York Times and other major publications that have posted classified diplomatic cables. Air Force users who try to view the websites of the New York Times, Britain's Guardian, Spain's El Pais, France's Le Monde or German magazine Der Spiegel instead get a page that says, "ACCESS DENIED. Internet Usage is Logged & Monitored." The notice warns that anyone who accesses unauthorized sites from military computers could be punished. The Air Force said it had blocked more than 25 websites that contained the documents, originally obtained by the website WikiLeaks and published starting late last month, in order to keep classified material off unclassified computer systems.
benton.org/node/46492 | Wall Street Journal
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BROADCASTING & CABLE

DIRECTV SETTLEMENT
[SOURCE: Multichannel News, AUTHOR: John Eggerton]
DirecTV has reached a settlement agreement with States Attorney Generals in all 50 states over consumer complaints about its advertising, customer service and third-party retailer policies. A DirecTV spokesperson said the settlement included $14.25 million for court costs in all 50 of those states, plus an as-yet undetermined amount for restitution to consumers. The complaints date back to January 2007, according to Ohio Attorney General Richard Cordray in an e-mailed release about the settlement, which stems from allegations of deceptive and unfair business practices. For example, Cordray said his offices had received 1,714 complaints over that time, including that DirceTV did not clearly disclose prices, limitations on certain special pricing and automatic renewals on at least one seasonal deal. There were also allegations the company offered cash back, but provided only bill credit and enrolled customers in additional contracts without clearly disclosing the terms or when replacing defective equipment.
According to Cordray, DirecTV has promised to:
Clearly disclose all material terms to consumers;
Replace leased equipment that is defective at no cost except shipping costs;
Not require the consumer to enter into an additional contract when simply replacing defective equipment;
Clearly disclose when a consumer is entering into a contract;
Clearly notify consumers before a consumer is obligated to pay for a seasonal sports package;
Clearly disclose all limitations on the availability of local channels;
Not misrepresent the availability of sports programming;
Not represent that a consumer would receive cash back if the consumer would actually receive a bill credit; and
Clearly notify consumers that they will be charged a cancellation or equipment fee at least 10 days before charging
the fee.
benton.org/node/46488 | Multichannel News
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SANDERS ASKS JUSTICE TO BLOCK COMCAST-NBC
[SOURCE: National Journal, AUTHOR: Juliana Gruenwald]
Sen. Bernie Sanders (I-VT) called on the Justice Department to block Comcast's proposed merger with NBC Universal, saying combining the nation's biggest cable company with a major content provider will drive up cable television prices and hamper competition. In a letter to Christine Varney, assistant attorney general for antitrust, Sen Sanders said the merger would likely result in "substantially lessening" competition in the video programming market and the cable TV and online distribution markets. "The proposed Comcast-NBCU merger poses substantial new risks not seen in past transactions because of both its size and the dynamic evolution of distribution models for video content," Sen Sanders wrote. "These risks go above and beyond even the hypothetical ameliorative potential of current [Federal Communications Commission] and statutory protections. We're the merger to be approved I have little doubt that Comcast-NBCU would retain hundreds of attorneys and lobbyists to exploit the gaps and loopholes in current regulations."
benton.org/node/46455 | National Journal
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NAB AND LPFM
[SOURCE: The Huffington Post, AUTHOR: Craig Aaron]
[Commentary] Surely most of you are familiar with the movie Mr. Smith Goes to Washington — that heart-warming classic where Jimmy Stewart exploits arcane Senate procedure to challenge political corruption and shady inside deals. There's a sequel playing out now in D.C., with a real-life Mr. Smith, but it's not the same kind of feel-good story. Let's call it: Mr. Smith Stayed in Washington — And Now He's Killing Community Radio. The Mr. Smith in question is Gordon Smith, the former Republican senator from Oregon turned lobbyist-in-chief at the National Association of Broadcasters (NAB), one of the Capitol's most entrenched and powerful lobbies. In the original Mr. Smith, Stewart launched a filibuster to expose the smear campaign being waged against him buy a corrupt political machine. In this unfortunate follow-up, Mr. Smith is persuading his former colleagues to use a rolling series of secret holds to keep a bill off the floor that would create thousands of new hyper-local community radio stations.
benton.org/node/46433 | Huffington Post, The
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PHOENIX PANS ALLVID PROPOSAL
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
The Phoenix Center argues in a new paper that the Federal Communications Commission's AllVid proposal may "do more harm than good." The FCC has proposed shoring up the CableCARD regime in the near term and spurring the creation of a universal gateway device that would deliver both broadband and traditional video to TV sets. Its twin goals are to spur retail marketing in set-tops, which it failed to do with the CableCARD regime, and to spur the adoption of broadband given that some 99% of households have a TV, while only 75%-80% have a computer. But the new Phoenix Center study argues that, at least in terms of spurring a retail market in set-tops, distributors have no "anti-competitive preference for self-supply." Why? "If the equipment can be produced more efficiently and sold at a lower price in a competitive retail market, then the provider will embrace such a market to the benefit of both provider and the consumer," the paper argues.
benton.org/node/46437 | Broadcasting&Cable
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THE ALLVID PROCEEDING
[SOURCE: Susan Crawford blog, AUTHOR: Susan Crawford]
[Commentary] Back in March and April of this year, I wrote about the Federal Communications Commission’s efforts to open up the set-top box market. Now it’s time to talk about this proceeding (10-91) again, because the world of devices gives the pay-TV/programming industry another opportunity to squeeze Netflix and the rest of us. This proceeding is a big deal. If the provider of subscription video can control every possible angle of use of that video and simultaneously is one of very few choices for high-speed Internet access for a particular household, unending market-shaping mischief is possible. Think of the angles.
Programming guide information: If no one else can get access to machine-readable, standardized data ABOUT programs, no one else can provide an interface to a wide variety of Internet and pay-TV programming. Only the pay-TV company will get to run this business.
Context for programming. If no one else can accompany the subscription programming with other applications, then only the pay-TV source will be able to run these businesses.
Choices of devices. If no one else can sell consumers devices that allow access to both online and pay-TV programming, then only the pay-TV source will be able to sell these integrated devices. We'll all be forced into monthly rentals, high-priced unending relationships with devices that we don't own. And if the pay-TV provider decides to offer an integrated device to us, they'll have control over what Internet access is allowed.
Use your market power to ensure that unauthorized video isn't allowed into approved consumer devices, and don't let anyone create new devices that will play well with subscription services.
A set of legal arguments - the carriers claim that the FCC proposal creates a risk of litigation over their First Amendment (forced speech!) and Fifth Amendment (taking our IP rights without just compensation!) rights, plus enormous copyright problems (those program guides are copyrightable!).
benton.org/node/46453 | Susan Crawford blog
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WIRELESS

WHY IS FCC TALKING TEXTING?
[SOURCE: Public Knowledge, AUTHOR: Michael Weinberg]
[Commentary] Last month, when announcing a new program to modernize the nation’s 911 system, federal Communications Commission Chairman Julius Genachowski rightly noted that “consumers are using their phones less to make calls, and more for texting and sending pictures.” Today the FCC is holding Generation Mobile, a forum to discuss helping young people navigate the mobile world. The forum will focus especially on the “maneuvering marauder” of mobile phones equipped with text messaging. It is a good thing that the FCC is recognizing the prevalence of text messaging, and its central role in consumers’ mobile lives. Text messaging is important, and the FCC should make sure that consumers are protected. Unfortunately, as far as the FCC’s authority is concerned, they might as well be investigating nautical traffic separation schemes in the approach to Buzzards Bay, MA or investigating which chemicals should be exempted under the Toxic Substances Control Act. That is because, like nautical traffic separation schemes and Toxic Substances Control Act exceptions, the FCC has steadfastly avoided asserting any authority over text messages.
benton.org/node/46432 | Public Knowledge
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CYBERSECURITY

COST OF HACKING
[SOURCE: New York Times, AUTHOR: Verne Kopytoff]
Repelling a hacker attack can be costly as PayPal, Visa and MasterCard undoubtedly found out last week as they tried ­ with mixed success ­ to keep their Web sites from being knocked offline by supporters of Wikileaks. How much money exactly? An unrelated attack several years earlier on Google may provide some insight. In 2005 Google was battling the Santy worm, a bit of malicious software that caused infected computers across the globe to automatically enter search queries ­ so many, in fact, that Google was overwhelmed. Details of the episode are chronicled in internal Federal Bureau of Investigation memos obtained by The New York Times through a Freedom of Information Act request. On Dec. 22, 2005, Google complained to the FBI that the attack had slowed its search engine’s performance. For 12 to 18 months previous, Google said it had been plagued by variants of the worm, which used search queries to find vulnerable Web sites and deface them by exploiting a security hole in community forum software PHP Bulletin Board.
benton.org/node/46441 | New York Times
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POLICYMAKERS

UPTON NAMES STAFF DIRECTOR
[SOURCE: The Hill, AUTHOR: Gautham Nagesh]
Incoming House Energy and Commerce Chairman Fred Upton (R-MI) announced that Gary Andres, a former White House staff member under President George H.W. Bush, will serve as staff director for the committee in the next Congress. In his new role, Andres will take a lead role on the Republicans' efforts to repeal the White House's healthcare bill. The GOP is also expected to fight any new climate change regulations, and the committee should serve as ground zero for those confrontations. Andres previous served as deputy assistant for legislative affairs to the first President Bush and was an adviser to President George W. Bush's transition team. He currently services as vice chairman of public policy and research at the lobbying firm Dutko World Wide. He has also served as a columnist for The Weekly Standard Online, Politico, National Review, and Roll Call. Andres is also a research fellow at the American University Center for Congressional and Presidential Studies and holds a Ph.D. in public policy from the University of Illinois-Chicago. He previously served vice president for Washington research at Prudential Securities and executive director of federal relations at Southwestern Bell Corp.
benton.org/node/46438 | Hill, The
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HEALTH

HHS COMMITTEE CONSIDERS PCAST RECS
[SOURCE: ModernHealthcare.com, AUTHOR: Joseph Conn]
A presidential advisory committee's call for federal adoption of a health-information exchange language came up for discussion before the federal Health Information Technology Policy Committee on Monday, with David Blumenthal, the national coordinator for health information technology at HHS, saying the advisory committee's recommendation is “strongly supported by the president.” Similar recommendations regarding patient privacy, however, were not so forcefully addressed by the ONC chief. Blumenthal told the health IT policy committee that a "forward-leaning posture on information exchange will be welcome." Blumenthal signaled his desire to use the financial leverage in the program created under the American Recovery and Reinvestment Act of 2009 to drive home the exchange-language recommendations issued by the President's Council of Advisors on Science and Technology in a report last week.
benton.org/node/46428 | ModernHealthcare.com
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SAFETY AND EHRs
[SOURCE: New York Times, AUTHOR: Milt Freudenheim]
Only about one in four doctors, mostly in large group practices, is using an electronic health record system. A vast majority of physicians in small offices, the doctors who serve most Americans, still track patients’ illnesses and other problems with pen and paper. The thousands of sometimes deadly medical errors tallied by an Institute of Medicine study in 1999 are still all too common, according to a recent report on North Carolina hospitals in the New England Journal of Medicine. And the electronic record systems are themselves increasingly attracting concerns that computer errors, design flaws and breakdowns in communication sometimes endanger patients. Taking a fresh look at such concerns, the Institute of Medicine created the Committee on Patient Safety and Health Information Technology to run a yearlong study and issue recommendations. The 16-member panel is meeting for the first time on Dec 14 in Washington.
benton.org/node/46427 | New York Times
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STORIES FROM ABROAD
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PARTNERSHIP FOR INNOVATION
[SOURCE: New York Times, AUTHOR: William Kennard]
[Commentary] While many government actions involve domestic policy, working together with the European Union we can launch a new trans-Atlantic era of innovation. First, we should coordinate regulatory policies and standards for new products and conduct joint research and development. We have done this before. By coordinating standards for online privacy in the late 1990s we helped accelerate the growth of global e-commerce. Emerging technologies -- renewable energy, smart grids, health IT, electric cars -- offer promising areas for cooperation. In regulation and standard-setting for new technology platforms like smart grids or health IT, we can connect our markets through more unified rules, creating greater scale for innovation. We can create and connect trans-Atlantic innovation clusters. These are the discussions our leaders had in Lisbon, and these are the areas primed for progress, including at this week’s Trans-Atlantic Economic Council meeting. If we get it right, we will give a boost to the trans-Atlantic economy, generating new jobs in sectors poised to lead our economies in the coming decades. [Kennard is the U.S. ambassador to the European Union and a former chairman of the Federal Communications Commission.]
benton.org/node/46494 | New York Times
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Network Neutrality Remains on FCC Agenda

The Federal Communications Commission confirmed the following items will be voted upon at the upcoming meeting on Tuesday, December 21. The FCC will consider:

1) a Notice of Inquiry concerning the transition from the current, voice-only 911 system to a broadband-enabled, next-generation 911 system.
2) a Report and Order adopting basic rules of the road to preserve the open Internet as a platform for innovation, investment, competition, and free expression.