December 2010

Viacom’s Unusual Legal Tack Against YouTube -- And Why It Just Might Work

There’s a curious thing about Viacom’s recently appealed copyright case against YouTube. Viacom’s evidence and allegations focus on the YouTube of 2005 to 2007, not the YouTube of 2010.

Why does this matter? Because it suggests that, for all the bad blood between the two companies, Viacom doesn't actually object to how YouTube currently filters content and deals with copyright -- or, if Viacom does have a problem with present-day YouTube, it thinks that case would be too hard to win. What Viacom does have, however, after years of paying lawyers to dig for dirt, is a very unflattering portrait of the young YouTube. And here’s why that might still be enough to win.

Indian Regulator Recommends Scrapping 38 Permits

The Telecom Regulatory Authority of India has recommended scrapping 38 airwave permits held by companies including Aircel Ltd., Dishnet Wireless Ltd., Etisalat DB Telecom Pvt. and Unitech Wireless Pvt.

TRAI has also suggested “legal examination” of 31 licenses given to Aircel, Allianz Infratech (P) Ltd., Etisalat DB, Loop Telecom Ltd., Sistema Shyam Teleservices Ltd. and Videocon Telecommunications Ltd., Sachin Pilot, junior telecommunications minister. The regulator’s “stance is that this is a scarce national resource and this is the harshest way of punishing these operators,” said Naveen Kulkarni, an analyst at MF Global Ltd. in Mumbai.

Friday, December 17
11 am

The (BBG) will meet on Friday, December 17. The public meeting is scheduled to begin at 11:00 a.m.

The BBG will hear a Middle East trip report, a report from the Board’s Budget and Strategy Committee, and a report from the Chairman of the International Broadcasting Bureau Coordinating Committee on distribution/technology.

The meeting will be webcast, both live and on-demand, at www.bbg.gov



December 10, 2010 (Network Neutrality, Telework, House 2011 Schedule)

"While I recognize that there are distinctions between wired and wireless networks, I think it is essential that our wireless networks -- those of the present and future -- grow in an open way just as our wired ones have."
-- FCC Commissioner Mignon Clyburn http://benton.org/node/46174

BENTON'S COMMUNICATIONS-RELATED HEADLINES for FRIDAY, DECEMBER 10, 2010

Today, the Annual Telecommunications Policy & Regulation Institute continues http://bit.ly/h6BHlq and here's a peek at next week http://bit.ly/dRPb68


NETWORK NEUTRALITY
   At FCC chairman dinner, biggest buzz comes from the crowd
   Lobbying War Over Internet Heats Up
   FCC's Clyburn has concerns, but is optimistic about network neutrality consensus
   FCC's Baker: Net Neutrality -- The Wrong Path for a Pro-Jobs, Pro-Investment Agenda
   FCC's Copps Isn't Committed On Net Neutrality
   Kerry Asks Copps, Clyburn To Back Net Neutrality Compromise
   AT&T's perversion of 'free speech' would let it control the Internet
   Internet issues bog down Comcast-NBC merger
   Peering problems: digging into the Comcast/Level 3 grudgematch
   Comcast and Level 3 Dispute Shows Need for Transparency In Peering Agreements
   Network Neutrality and the Academics Who Love It

LABOR
   Obama signs telework expansion act

WIRELESS
   Consumers Union asks government to crack down on 'bill shock'
   Data by the Bucket

TELEVISION
   Netflix challenge to traditional TV
   Why TV Sweeps Needs to Die

POLICYMAKERS
   GOP decides two weeks on, one week off in shorter 2011 House schedule
   Upton Pledges to end "Two-Year Assault" on Telecom
   At FCC chairman dinner, biggest buzz comes from the crowd

JOURNALISM
   Fox News Channel boss caught slanting news reporting
   Leslie Nielsen and WikiLeaks Lead Blogosphere
   The Future of Media Gradually Coming Into Focus

PRIVACY
   Browser Privacy

GOVERNMENT PERFORMANCE
   OMB Outlines IT Reforms

STORIES FROM ABROAD
   Seoul pushes for Facebook privacy
   In Russia, free speech is a matter of state control
   China Moves to Block Foreign News on Nobel Prize
   India releases National Broadband Plan
   UK Probes Marketing of 'Sexualized' Products to Pre-Teens

COMMUNITY MEDIA
These headlines presented in partnership with:

   Some high-profile municipal broadband efforts have failed, but quite a few have succeeded
   Reinvigorating the public library mission
   EU hopes media literacy will 'empower consumers'
   Results from the 60-Second Survey: Privatization of Public Libraries

MORE ONLINE
   The Social Media Amber Alert: A Personal Story
   Confidence in meaningful-use readiness plunges

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NETWORK NEUTRALITY

REPORT FROM CHAIRMAN'S DINNER
[SOURCE: Washington Post, AUTHOR: Cecilia Kang]
At an annual dinner honoring the chairman of the Federal Communications Commission, special attention was paid to Julius Genachowski as he struggles to gain enough support to pass his controversial network neutrality proposal. The FCC chairman made plenty of self-deprecating jokes about observations that he takes too long to make decisions and has amassed critics on all sides of the policy and political spectrum. "Welcome to the latest in a series of secret meetings," Chairman Genachowski said to an audience of several hundred telecommunications bar association members. He was referring to unsuccessful closed-door negotiations in network neutrality between his chief of staff, Eddie Lazarus, and AT&T, Verizon, the cable trade group National Cable and Telecommunications Association and a coalition representing public interest groups and Web giants Google, Amazon and Facebook. But true to form, Chairman Genachowski didn't break news, and what was perhaps most interesting was commentary from observers and FCC officials about his chances at getting his proposal passed later this month.
benton.org/node/46192 | Washington Post
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NETWORK NEUTRALITY LOBBYING HEATS UP
[SOURCE: Wall Street Journal, AUTHOR: Amy Schatz]
Big phone and cable companies are outgunning Silicon Valley in last-minute lobbying to shape a pending Federal Communications Commission proposal to prevent Internet providers from interfering with web traffic. In the past two weeks, executives from Verizon Communications Inc. and AT&T Inc. have reported at least nine meetings or phone calls with senior FCC staff, according to FCC records. AT&T CEO Randall Stephenson called Mr. Genachowski on Nov. 23, and Verizon CEO Ivan Seidenberg rang the next day. Verizon Wireless CEO Daniel Mead visited Mr. Genachowski on Dec. 3 to tell him that "new rules are not warranted" but if enacted should come with a provision that they expire at some point. Silicon Valley's lobbying effort has been more muted. An Amazon.com lawyer called several legal advisers to FCC commissioners in late November. Skype Ltd. lawyers met with the agency's general counsel, and the Open Internet Coalition, which represents companies including Google Inc., Facebook Inc., eBay Inc, and Twitter Inc., had three meetings or calls with senior FCC staff. Just one CEO called, Dish Network's Charlie Ergen, who spoke to Mr. Genachowski on Nov. 23. Tech companies rarely engage in Washington with as much fervor and money as highly regulated phone and cable companies. Last year, large Internet providers and their trade associations spent $82 million lobbying Congress, according to federal records. Members of the Open Internet Coalition, the main Silicon Valley-backed group seeking Internet rules, spent about $19 million.
benton.org/node/46191 | Wall Street Journal
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CLYBURN ON NETWORK NEUTRALITY PROPOSAL
[SOURCE: Washington Post, AUTHOR: Cecilia Kang]
Federal Communications Commission member Mignon Clyburn said she hopes to reach a consensus on a draft proposal for network neutrality rules, but is closely scrutinizing the proposals for wireless networks. "So, do we have a consensus item in front of us? I think we are pretty close," Commissioner Clyburn said during a Practicing Law Institute's Telecommunications Policy & Regulation Institute Conference in Washington (DC). "But my focus over the coming days will be to ensure that we are thinking through the implications of the wireless piece of the item. While I recognize that there are distinctions between wired and wireless networks, I think it is essential that our wireless networks -- those of the present and future -- grow in an open way just as our wired ones have." She said, "We should ensure that, while there are two kinds of networks, we don't cause the development of two kinds of Internet worlds."
benton.org/node/46174 | Washington Post | National Journal | B&C | see the speech
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BAKER ON NETWORK NEUTRALITY PROPOSAL
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
Federal Communications Commission member Meredith Baker called on the FCC to immediately make public the chairman's draft of proposed network neutrality rules. In a speech to the Practising Law Institute's Telecommunications & Policy Regulation conference in Washington, Commissioner Baker, who opposes adopting the rules at the December meeting, said: "If this agency is to operate in the most transparent and inclusive manner, we should proactively put out a copy of our draft Net Neutrality rules for comment today. The comment cycle can be short, but putting some sunshine on what we are doing would inform our process." She said that would be a way for the chairman to fulfill his pledge of openness and transparency. So why doesn't Commissioner Baker, whose office has a copy of the draft, make it public herself? By rule, the commissioners are not allow to make nonpublic information public, said a Baker staffer. That has to come from the chairman or by a commission vote. She said the FCC was planning to legislate rather than regulate. By taking the item further than network neutrality legislation drafted by Rep. Henry Waxman (D-CA), she said, "we are doing what Congress could not, or would not do." She said the order would essentially by implementing regulations for a statute that was never enacted. "By doing it ourselves, there are no jurisdictional limits. We delegate to ourselves an unbounded regulatory power to adopt policies to promote a particular vision for the Internet. Congress is right to ask us to stand down," she said.
benton.org/node/46173 | Broadcasting&Cable | see the speech
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COPPS UNCOMMITTED
[SOURCE: National Journal, AUTHOR: David Hatch]
The critical swing vote that Federal Communications Commission Chairman Julius Genachowski needs from Democratic Commissioner Michael Copps later this month to adopt sweeping new rules for the Internet is not guaranteed. Commissioner Copps has made no commitments to back the network neutrality initiative that Chairman Genachowski announced December 1, and could reject it if the final version doesn't sufficiently protect consumers and smaller players. Commissioner Copps, a longtime consumer advocate who has been at the FCC since 2001, is signaling that his vote won't come cheap on this historic proposal, which would have lasting implications for the Internet.
benton.org/node/46140 | National Journal
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KERRY ASKS FOR COMPROMISE
[SOURCE: Multichannel News, AUTHOR: John Eggerton]
Sen John Kerry (D-MA), the chairman of the Senate Communications Subcommittee, has called on Democratic Federal Communications Commission members Michael Copps and Mignon Clyburn to back the compromise network neutrality order proposed by FCC Chairman Julius Genachowski. In a letter to the pair, Sen Kerry advises them to make the pragmatic call and accept "the good" over "the perfect," saying that is what he would do and pointing out that the FCC's two Republicans have said they will oppose the chairman's proposal, meaning the Democrats' votes will be necessary for approval. Commissioners Copps and Clyburn were both supportive of the chairman's original proposal to reclassify broadband access as a Title II service. After pushback from industry and Congress on that effort, Chairman Genachowski is proposing to stick with a Title I defense for expanding and codifying the FCC's network openness guidelines, which he has scheduled for a vote Dec. 21. Neither Commissioner Copps nor Commissioner Clyburn gave the compromise proposal a ringing endorsement.
benton.org/node/46141 | Multichannel News | National Journal
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AT&T'S FREE SPEECH
[SOURCE: InfoWorld, AUTHOR: Bill Snyder]
[Commentary] AT&T claims that network neutrality regulation will violate its First Amendment rights. What would the right to AT&T/Verizon-style free speech mean? It means the companies that provide Internet access would be free to choose what content moves on the network at what speeds and for how much money. If your company has an app or a service that competes with one of those giants -- too bad. The carriers' claim of free speech says you have no right to route that app or service through AT&T's or Verizon's network. (Never mind your free speech rights, of course.) Perhaps AT&T will next follow Comcast's lead and decide to tell you what devices your company can attach to the network. You may find your thin clients, VPN-equipped PCs, VoIP devices, or iPads one day disallowed ostensibly because they cause harm but in reality because their use isn't to AT&T's own financial benefit.
benton.org/node/46131 | InfoWorld
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INTERNET CENTRAL TO COMCAST-NBC REVIEW
[SOURCE: Los Angeles Times, AUTHOR: Joe Flint]
One company is the nation's biggest cable TV provider. The other owns a TV network, several popular cable channels and a movie studio. But when it comes to the $30-billion merger of Comcast Corp. and NBC Universal, the regulators and lawmakers who will decide the fate of the deal aren't focusing on the big screen or the small screen. They're looking at the Internet. Although there has been a lot of talk in media circles about what Comcast's ownership of NBC Universal would mean for viewers' choice of news and entertainment, the two branches of the federal government reviewing the merger -- the Justice Department and the Federal Communications Commission -- are more worried about what the combination means for the online world. The Web is shaping up to be the No. 1 issue in a mega media merger today, much the way battles over program diversity and commitment to news loomed over media mergers in the past.
benton.org/node/46189 | Los Angeles Times
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COMCAST VS LEVEL 3
[SOURCE: ars technica, AUTHOR: Nate Anderson]
Is Comcast really trying to wreck the open Internet with a set of new tollbooths? Is Level 3 really trying to browbeat its way to a good deal? Ever since the Comcast/Level 3 interconnection dispute broke wide open into public view last week, the accusations from both sides have been flying. Sorting out those accusations has been difficult, in part because it was just so hard to know, on a technical level, what exactly has been going on. Peering and transit issues can be notoriously complex but also murky, the details hidden behind nondisclosure agreements. As the 2009 Annual Report (PDF) from the ATLAS Internet Observatory put it, such deals are "difficult to quantify due to NDA/commercial privacy." One upside of the dispute is that some of this secrecy has been lifted, and both sides have been unusually open with the press and with regulators about how they interact and what they believe to be at stake. If Level 3 is right, Comcast is trying to do nothing less than turn every Tier 1 network in the US into its customer, rather than the other way round. The result: a fundamental shift in network economics, and the beginning of an era in which the major ISPs start throwing their weight around, making it almost impossible for content companies to reach customers without paying each ISP an additional fee for direct network access. In this view, it's no coincidence that the big ISPs like Comcast, Verizon, and AT&T all operate content businesses of their own, including cable TV, video on demand, and IPTV. If Comcast is right, Level 3 simply got in over its head and offered cut-rate pricing to Netflix in order to deliver the company's streaming video; now it needs to secure an unbelievable deal in order make the number work. More fundamentally, the entire controversy is a reminder that there are no hard-and-fast rules about network interconnection; indeed, the increasingly complex nature of these interconnection deals means that it's not always clear, even to the participants, who should be paying whom.
benton.org/node/46143 | Ars Technica
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LEVEL 3 AND TRANSPARENCY
[SOURCE: New America Foundation, AUTHOR: ]
The New America Foundation's Open Technology Initiative, Media Access Project, and Free Press sent a letter to the U.S. Department of Justice Antitrust Division and Federal Communications Commission urging an investigation of the dispute between Comcast Corporation and Level 3 Communications. The letter argues that peering agreements are rarely transparent and that an investigation is needed to reveal how peering agreements are negotiated and whether companies are acting in an anticompetitive manner.
This recent dispute raises three primary concerns:
Whether and how last-mile providers might leverage their relationship with broadband consumers to act in an anticompetitive manner;
Whether last-mile providers can leverage their market power to harm their competitors in the market for Internet content, particularly in the light of the proposed Comcast/NBC Universal merger; and,
How disputes could lead to disruptive outages that cripple the functioning of our communications infrastructure.
benton.org/node/46171 | New America Foundation
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LABOR

NEW TELEWORK LAW
[SOURCE: nextgov, AUTHOR: Amelia Gruber]
President Barack Obama signed into law legislation aimed at increasing telework in the federal government. Under the 2010 Telework Enhancement Act (H.R. 1722), agencies will have 180 days to establish a policy on working outside the office, identify eligible employees and inform them of the option. The law also requires agencies to name an official to manage telework programs, and incorporate the policy into plans for continuing essential services during natural disasters or other emergencies. The House passed the final version of the measure in mid-November, after a heated debate in which a number of Republicans argued it was too costly and would create extra bureaucracy. Some members also were upset that the Senate had stripped out oversight provisions the House approved in July. The new law now requires the Government Accountability Office and the Office of Personnel Management to periodically evaluate telework progress.
benton.org/node/46169 | nextgov
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WIRELESS

CU AND BILL SHOCK
[SOURCE: The Hill, AUTHOR: Gautham Nagesh]
Consumers Union wrote to lawmakers and the Federal Communications Commission urging them to require wireless companies to alert customers before hitting them with hefty overage fees. The letter references an article in the January issue of Consumer Reports that highlights how common it is for consumers to get surprise charges on their wireless bills. A September survey by the magazine found one out of five respondents reported receiving an unexpectedly high bill in the past year, half for at least $50. “The FCC needs to take action to ensure consumers are notified when they approach their usage limits. Consumers should consent to overage charges before being penalized,” said Consumers Union policy counsel Parul Desai. The letter also asks lawmakers and the FCC to consider addressing exclusive deals between smartphone makers and wireless firms that limit consumer choice, and also early termination fees that keep customers tied to their wireless firms for extended periods.
benton.org/node/46145 | Hill, The
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DATA BY THE BUCKET
[SOURCE: Wall Street Journal, AUTHOR: Shayndi Raice]
As the mobile industry weighs the pros and cons of usage-based pricing, a new way for consumers to buy data service may be on the cusp of making an appearance. Sprint Nextel CEO Dan Hesse said that the “big development” in the mobile industry could come from carriers offering one data plan that could cover a number of devices. “Everybody in the industry is looking at it right now,” he said. Carriers are betting on data-hungry customers for future revenue, and consumers are obliging by starting to carry more than one device — smartphones, tablets, laptop cards — that require data plans. The flip side is carriers are simultaneously struggling with how to curb what they term “abuse” of their networks — enabled by unlimited data plans — by the small minority of heavy bandwidth users that cause congestion.
benton.org/node/46146 | Wall Street Journal
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TELEVISION

NETFLIX CHALLENGES TRADITIONAL TV
[SOURCE: Financial Times, AUTHOR: David Gelles, Andrew Edgecliffe-Johnson]
Netflix has emerged as a leading contender in the fight to be the American consumer’s gateway to the universe of movies and television shows, pitching itself as an alternative to cable and satellite television operators’ channel bundles. During peak times, Netflix now accounts for a fifth of downstream traffic on US broadband networks. This success has made Netflix a symbol for the growth of “over the top” services, which offer video online without a set-top box, as Apple, Amazon and others do. It is also turning Netflix into a target for traditional distributors anxious about “cord-cutting” – people giving up their cable and satellite contracts. At a UBS media conference in New York this week, the message emerged that traditional content owners and distributors will not give up their old economics without a fight.
benton.org/node/46188 | Financial Times
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SWEEPS MUST DIE
[SOURCE: AdAge, AUTHOR: Brad Adgate]
[Commentary] In today's multichannel, multiscreen environment, what had once been a greatly anticipated quarterly event -- the sweeps periods -- has become, well, somewhat unimportant. One problem has been a broadcast season devoid of new breakout hits and marked by ratings erosion at several long-running shows, while cable continues to attract more viewers. ESPN's "Monday Night Football" was the season's second-highest rated show among adults from 18 to 49, an accomplishment that would have been inconceivable just a few years back. But there's another problem with sweeps: the weakness of its methodology and the growing strength of year-round ratings. Nielsen sends out hundreds of thousands of diaries every November, February, May and July -- the four quarterly sweeps periods -- to measure shows' ratings in local households. This season Nielsen will mail out TV diaries to 185 of the country's smaller TV markets. But diaries depend too much on viewers' participation; have poor response rates, particularly with young demographics and ethnic groups; and suffer from the proliferation of TV sets in every household, which makes it harder to track what everyone's watching. Sweeps periods are also starting to hurt broadcast networks. Because broadcasters load so much of their best programming -- new episodes, specials, event TV -- into sweeps periods, they're left with depleted resources to compete during the rest of the year. It is time for Nielsen to play its part in eliminating diaries -- and sweeps -- by continually measuring all local TV markets all the time. This is what advertisers -- who advertise throughout the year, after all -- have been asking for. Eliminating the sweeps will give programmers at the broadcast networks some much needed flexibility in scheduling.
benton.org/node/46168 | AdAge
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POLICYMAKERS

HOUSE SCHEDULE 2011
[SOURCE: The Hill, AUTHOR: Molly Hooper]
House Republicans unveiled a 2011 schedule that will keep lawmakers in the nation’s capital for shorter periods of time, allowing them to travel home more frequently. The schedule represents a major change from how Democrats have run the lower chamber over the last four years. Under the new calendar, House members will have a cycle of being in session for two weeks in Washington and then spending the following week in their home districts. Incoming House Majority Leader Eric Cantor (R-Va.) said the new schedule would create “certainty” for members. The House’s first day in the 112th Congress will be Jan. 5, well before President Obama delivers his State of the Union address. Usually, when the president’s party controls Congress, there is a relatively light legislative schedule before that speech. But with Republicans in control of the House next year, the plan is to hit the ground running next month. An exception to their two-weeks-in, one-week-out rotation will occur in January, when the House will be in session all month. Instead of the normal target adjournment date of Sept. 29 (aimed to coincide with the end of the fiscal year), Cantor expects the House to be in until Dec. 8. In prior Congresses, targeted adjournment dates in odd-number years were rarely met and regularly extended into December. There will be a two-week recess in April, and the August recess will be scaled back to a little more than four weeks. The House is scheduled to adjourn Aug. 5 and return Sept. 7.
benton.org/node/46147 | Hill, The
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NEW COMMERCE COMMITTEE CHAIR
[SOURCE: Connected Planet, AUTHOR: Joan Engebretson]
The next House Commerce Committee Chairman, Fred Upton (R-MI), has a history of involvement in telecom policy, including a long tenure on the Commerce Committee’s telecom subcommittee. Among other things, he has introduced legislation to enable telcos to obtain a nationwide cable franchise and to give the Federal Trade Commission the authority to implement and enforce a national Do-Not-Call registry. In a recent statement, Rep Upton accused the Obama Administration of an “unfettered two-year assault” on the telecommunications sector (along with health and energy) and said that period “is now over.” Those comments may have been a reference to network neutrality, which has been widely opposed by communications carriers. But it is more difficult to read into his comments what he might be thinking about Universal Service reform. Perhaps Rep Upton would include reforms proposed in the National Broadband Plan in what he called the “assault on the telecommunications sector.” On the other hand, he has previously expressed concerns about the increasing costs of the Universal Service fund, which could make it unlikely for him to support expanding the Universal Service program to cover the higher broadband speeds as small telcos have advocated. In his statement, Rep Upton reiterated his desire to control costs, saying “We will stand firm in our fight to . . . cut reckless spending.”
benton.org/node/46136 | Connected Planet
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JOURNALISM

FOX NEWS SLANT
[SOURCE: Media Matters for America, AUTHOR: Ben Dimiero]
At the height of the health care reform debate last fall, Bill Sammon, Fox News' Washington managing editor, sent a memo directing his network's journalists not to use the phrase "public option." Instead, Sammon wrote, Fox's reporters should use "government option" and similar phrases -- wording that a top Republican pollster had recommended in order to turn public opinion against the Democrats' reform efforts. Journalists on the network's flagship news program, Special Report with Bret Baier, appear to have followed Sammon's directive in reporting on health care reform. Sources familiar with the situation in Fox's Washington bureau say that Sammon uses his position as managing editor to "slant" Fox's supposedly neutral news coverage to the right. Sammon's "government option" email is the clearest evidence yet that Sammon is aggressively pushing Fox's reporting to the right -- in this case by issuing written orders to his staff.
benton.org/node/46138 | Media Matters for America
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FUTURE OF MEDIA
[SOURCE: Seeking Alpha, AUTHOR: Larry Kramer]
[Commentary] We're at the beginning of what promises to be a very exciting chapter in the transformation of the media industry. Recent efforts seem to be moving in the same direction: To create and curate quality content on multiple platforms with multiple revenue streams. Newsrooms of the future are likely to be built around the topics they cover (Wall Street, Sports, New York City) instead of the medium they are in (newspapers, television, radio) because they will likely have to transcend any one medium and distribute on several so they can highlight their strength of coverage of their particular subject matter and bring in the revenue they need to support a healthy news organization. What we are now seeing is a two-pronged attack: how to reach consumers on the new platform and how to charge for content, or find another business model, on all platforms. Trying to charge for content that has been given out for free, however, has the feel of putting the genie back into the bottle…it’s just not going to happen easily. [Larry Kramer is an adjunct professor of Media Management at the Newhouse School of Communications at Syracuse University.]
benton.org/node/46134 | Seeking Alpha
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PRIVACY

BROWSER PRIVACY FEATURES: A WORK IN PROGRESS
[SOURCE: Center for Democracy and Technology, AUTHOR: Press release]
This report assesses the privacy control features of the five major browsers (Google Chrome, Firefox, Internet Explorer, Opera, and Safari) and concludes that no single browser stands above the rest -- all have strengths that are offset by weaknesses. The report notes that privacy controls haven't kept up with some of the newer tracking technologies, including "object controls" (such as for Flash and DOM storage) and location services. In addition, consumers may find the number of controls confusing and instead use default privacy settings, which are typically weak. The report acknowledges that one strategy for increasing the usability of privacy controls would be to implement a "Do Not Track" option for consumers, either through industry self-regulation or by legislation. Microsoft and Mozilla have both recently announced initiatives to incorporate global tracking controls into their browsers. However, since behavioral web targeting is just one aspect of the privacy issue, such a solution is no substitute for a federal baseline consumer privacy law.
benton.org/node/46129 | Center for Democracy and Technology | read the report
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GOVERNMENT PERFORMANCE

OMB OUTLINES IT REFORMS
[SOURCE: National Journal, AUTHOR: Juliana Gruenwald]
The Office of Management and Budget rolled out more than two dozen information technology reforms including a "cloud first" policy aimed at taking advantage of potential cost savings from delivering hosted services over the Internet. OMB proposed 25 reforms including setting an 18-month deadline for underperforming projects to either turnaround or be terminated. As part of this effort to reduce the number of troubled projects, the OMB plan also said that funding for major IT programs will only be approved if they have a dedicated program manager and "fully staffed integrated program team," break large projects into smaller pieces that deliver "usable functionality" every six months, and include specialized IT acquisition professionals. In an effort to reduce costs and increase flexibility, the OMB has proposed using cloud computing technologies where possible. "The three-part strategy on cloud technology will revolve around using commercial cloud technologies where feasible, launching private government clouds, and utilizing regional clouds with state and local governments where appropriate," according to the report crafted by federal Chief Information Officer Vivek Kundra. To begin this effort, OMB is calling on agencies to identify three services that can be moved to the cloud, and move one of those services to the cloud within 12 months and the remaining two within 18 months.
benton.org/node/46186 | National Journal | read the OMB report
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STORIES FROM ABROAD

FACEBOOK PRIVACY
[SOURCE: Financial Times, AUTHOR: Song Jung-a]
The South Korean telecoms regulator is demanding changes to Facebook’s privacy policy, adding to a growing criticism of the way the popular social networking site handles the personal data of its 580 million users. The Korea Communications Commission joins an international chorus of criticism over Facebook’s handling of personal information. Authorities in Canada and Germany have been among the most vocal. The website has adjusted its default privacy settings following criticism over the way it allows some third-party sites to access and share its users’ preferences. But, the Korea Communications Commission said, the way Facebook notified users about how personal information was collected and went about getting their consent for its use remained “inadequate”. If Facebook offers personal information to a third party, it needs to notify users of the purpose and the period in which the details would be used, the commission said. The Korean regulator has given Facebook, which has about 2.3 million users in South Korea, 30 days to submit a plan on how it will comply with its demands. The commission said it would impose a fine or take other actions against Facebook if the site does not implement “corrective measures”.
benton.org/node/46185 | Financial Times
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STATE CONTROL OF MEDIA IN RUSSIA
[SOURCE: Washington Post, AUTHOR: Kathy Lally]
Here's what the world looks like in a country where the government controls the media: One evening, the main television channel uses prime time to broadcast a concert across vast Russia, paying tribute to the much-feared tax collectors. Another day, media overseers charge a respected newspaper with extremism - for straightforward reporting on neo-Nazi groups. The late-November concert in honor of the 20th anniversary of the tax inspectorate is a merry affair. Famous entertainers joke and sing. A chorus of tax collectors joins in, glowing in stage lights, gold braid dripping from the shoulders of their military-style uniforms, a song of money on their lips - hardly the intimidating agents capable of bringing down a suddenly inconvenient billionaire or ruining a small-business man without the right friends. The state does not offer such an admiring audience for crusading journalists such as Dmitri Muratov, the editor of Novaya Gazeta and recipient of the warning for promoting extremist views. One more such warning, and the paper can be shut down.
benton.org/node/46183 | Washington Post
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CHINA BLOCKS NEWS
[SOURCE: New York Times, AUTHOR: David Barboza]
Chinese censors apparently began blocking the news Web sites of CNN, the BBC and the Norwegian broadcaster NRK from appearing in China on Dec 9, a day before the Nobel Peace Prize ceremony is to be held in Oslo to honor Liu Xiaobo, the imprisoned dissident. China has not said that it is intentionally blocking the news Web sites of the broadcasters, but Chinese censors regularly black out some portions of CNN and BBC television broadcasts when delicate political topics are covered. This happens even though CNN, BBC and other international television channels are largely limited to five-star hotels and luxury apartments that cater to foreigners. In recent weeks, CNN and BBC television broadcasts have repeatedly gone dark in China during news segments about the Nobel Prize’s being awarded to Mr. Liu, only to reappear after the segment is completed.
benton.org/node/46182 | New York Times
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INDIA'S NATIONAL BROADBAND PLAN
[SOURCE: TeleGeography, AUTHOR: ]
The Telecoms Regulatory Authority of India (TRAI) has unveiled proposals for the construction of a national broadband network costing around INR600 billion (USD13 billion). The plan advocates the construction of an open access fibre-optic network to connect all cities, towns and villages with a population of more than 500 with funding to come via the Universal Service Obligation Fund (USOF) and a loan from the government. In addition, the TRAI also called for a state-run agency, the National Optical Fibre Agency (NOFA), to be set up to oversee the project, while a State Optical Fibre Agency (SOFA) would be created for every state, with 51% held by the NOFA and the remaining equity held by the respective state government. In the first phase of network deployment all cities, urban areas and gram pachayats (local governments at the village or small town level) would be covered by 2012, while the second phase, which would be completed by 2013, would see the infrastructure connect all remaining locales with more than 500 inhabitants. The network itself would be capable of supporting downlink speeds of up to 10Mbps in 63 of the country’s metros and larger cities by 2014. Meanwhile, speeds of up to 4Mbps would be on offer in a further 352 cities and the remaining areas would have access to download rates of 2Mbps.
benton.org/node/46128 | TeleGeography
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UK AD PROBE
[SOURCE: AdAge, AUTHOR: Emma Hall]
British retailers could be banned from selling "sexualized" products aimed at children following a government inquiry into "age appropriate" marketing. The review, started this week, is looking at whether new rules are needed to prevent the marketing of items such as "porn star" T-shirts, pole-dancing kits, Playboy pencil cases and padded bras to pre-teens. British Prime Minister David Cameron recently labeled marketers "irresponsible" and said he was shocked to find models of beds named "Lolita" targeted at 6-year-olds. One of the government's pledges when it came to power in May was to take action to protect children from what it referred to as "premature sexualization."
benton.org/node/46126 | AdAge
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MUNICIPAL BROADBAND
[SOURCE: Government Computer Weekly, AUTHOR: Kevin McCaney]
Municipal broadband efforts have had their share of success, but in a highly competitive environment, even the most well-intentioned plans can go wrong. A report in May by the non-profit New Rules Project details municipal efforts around the country, and includes charts comparing municipal speeds and rates with those of commercial providers. The report, which argues in favor of the cost-effectiveness of municipal networks, cites hundreds of successful efforts, involving both fiber and wireless networks large and small. Lafayette, La., and Monticello, Minn., for example, offer some of the fastest connection speeds at the lowest rates in the country. Oklahoma City’s wireless mesh network has helped the city modernize its agency offices In addition to the successes, the report discusses the obstacles to municipal networks, including opposition from commercial providers. Ultimately, it concludes, “There is no one model for community broadband.”
benton.org/node/46133 | Government Computer Weekly | New Rules | Associated Press
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At FCC chairman dinner, biggest buzz comes from the crowd

At an annual dinner honoring the chairman of the Federal Communications Commission, special attention was paid to Julius Genachowski as he struggles to gain enough support to pass his controversial network neutrality proposal.

The FCC chairman made plenty of self-deprecating jokes about observations that he takes too long to make decisions and has amassed critics on all sides of the policy and political spectrum. "Welcome to the latest in a series of secret meetings," Chairman Genachowski said to an audience of several hundred telecommunications bar association members. He was referring to unsuccessful closed-door negotiations in network neutrality between his chief of staff, Eddie Lazarus, and AT&T, Verizon, the cable trade group National Cable and Telecommunications Association and a coalition representing public interest groups and Web giants Google, Amazon and Facebook. But true to form, Chairman Genachowski didn't break news, and what was perhaps most interesting was commentary from observers and FCC officials about his chances at getting his proposal passed later this month.

Lobbying War Over Internet Heats Up

Big phone and cable companies are outgunning Silicon Valley in last-minute lobbying to shape a pending Federal Communications Commission proposal to prevent Internet providers from interfering with web traffic.

In the past two weeks, executives from Verizon Communications Inc. and AT&T Inc. have reported at least nine meetings or phone calls with senior FCC staff, according to FCC records. AT&T CEO Randall Stephenson called Mr. Genachowski on Nov. 23, and Verizon CEO Ivan Seidenberg rang the next day. Verizon Wireless CEO Daniel Mead visited Mr. Genachowski on Dec. 3 to tell him that "new rules are not warranted" but if enacted should come with a provision that they expire at some point.

Silicon Valley's lobbying effort has been more muted. An Amazon.com lawyer called several legal advisers to FCC commissioners in late November. Skype Ltd. lawyers met with the agency's general counsel, and the Open Internet Coalition, which represents companies including Google Inc., Facebook Inc., eBay Inc, and Twitter Inc., had three meetings or calls with senior FCC staff. Just one CEO called, Dish Network's Charlie Ergen, who spoke to Mr. Genachowski on Nov. 23. Tech companies rarely engage in Washington with as much fervor and money as highly regulated phone and cable companies. Last year, large Internet providers and their trade associations spent $82 million lobbying Congress, according to federal records. Members of the Open Internet Coalition, the main Silicon Valley-backed group seeking Internet rules, spent about $19 million.

Internet issues bog down Comcast-NBC merger

One company is the nation's biggest cable TV provider. The other owns a TV network, several popular cable channels and a movie studio. But when it comes to the $30-billion merger of Comcast Corp. and NBC Universal, the regulators and lawmakers who will decide the fate of the deal aren't focusing on the big screen or the small screen. They're looking at the Internet.

Although there has been a lot of talk in media circles about what Comcast's ownership of NBC Universal would mean for viewers' choice of news and entertainment, the two branches of the federal government reviewing the merger -- the Justice Department and the Federal Communications Commission -- are more worried about what the combination means for the online world. The Web is shaping up to be the No. 1 issue in a mega media merger today, much the way battles over program diversity and commitment to news loomed over media mergers in the past.

Netflix challenge to traditional TV

Netflix has emerged as a leading contender in the fight to be the American consumer’s gateway to the universe of movies and television shows, pitching itself as an alternative to cable and satellite television operators’ channel bundles.

During peak times, Netflix now accounts for a fifth of downstream traffic on US broadband networks. This success has made Netflix a symbol for the growth of “over the top” services, which offer video online without a set-top box, as Apple, Amazon and others do. It is also turning Netflix into a target for traditional distributors anxious about “cord-cutting” – people giving up their cable and satellite contracts. At a UBS media conference in New York this week, the message emerged that traditional content owners and distributors will not give up their old economics without a fight.

OMB Outlines IT Reforms

The Office of Management and Budget rolled out more than two dozen information technology reforms including a "cloud first" policy aimed at taking advantage of potential cost savings from delivering hosted services over the Internet.

OMB proposed 25 reforms including setting an 18-month deadline for underperforming projects to either turnaround or be terminated. As part of this effort to reduce the number of troubled projects, the OMB plan also said that funding for major IT programs will only be approved if they have a dedicated program manager and "fully staffed integrated program team," break large projects into smaller pieces that deliver "usable functionality" every six months, and include specialized IT acquisition professionals. In an effort to reduce costs and increase flexibility, the OMB has proposed using cloud computing technologies where possible. "The three-part strategy on cloud technology will revolve around using commercial cloud technologies where feasible, launching private government clouds, and utilizing regional clouds with state and local governments where appropriate," according to the report crafted by federal Chief Information Officer Vivek Kundra. To begin this effort, OMB is calling on agencies to identify three services that can be moved to the cloud, and move one of those services to the cloud within 12 months and the remaining two within 18 months.

Seoul pushes for Facebook privacy

The South Korean telecoms regulator is demanding changes to Facebook’s privacy policy, adding to a growing criticism of the way the popular social networking site handles the personal data of its 580 million users.

The Korea Communications Commission joins an international chorus of criticism over Facebook’s handling of personal information. Authorities in Canada and Germany have been among the most vocal.

The website has adjusted its default privacy settings following criticism over the way it allows some third-party sites to access and share its users’ preferences. But, the Korea Communications Commission said, the way Facebook notified users about how personal information was collected and went about getting their consent for its use remained “inadequate”. If Facebook offers personal information to a third party, it needs to notify users of the purpose and the period in which the details would be used, the commission said. The Korean regulator has given Facebook, which has about 2.3 million users in South Korea, 30 days to submit a plan on how it will comply with its demands. The commission said it would impose a fine or take other actions against Facebook if the site does not implement “corrective measures”.