February 2011

BENTON'S COMMUNICATIONS-RELATED HEADLINES for THURSDAY, FEBRUARY 3, 2011

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WIRELESS
   Why do AT&T, Verizon support D Block reallocation?
   Verizon Beats AT&T in Voice Calls for iPhones
   AT&T Sweetens Data Plans Before Verizon iPhone
   Joint Task Force for Text-based Mobile Marketing Programs
   Introducing the Android Market website
   Apple’s In-App Rules: ‘Betrayed’ European Publishers Convene A Summit
   Central Figure in India Telecom Scandal Arrested

INTERNET/BROADBAND
   Court Rejects Effort To Have Comcast Panel Hear Verizon Challenge
   AT&T Sweetens Verizon: FCC suit not tied to plan
   Public Knowledge rebrands 'the nuclear option'
   Heritage Foundation: abolish net neutrality, gut FCC powers

DIVERSITY
   Groups Push FCC To Provide Easy Access To Minority Ownership Data
   Digital Divide: Segregation Is Alive and Well in Social Media

OWNERSHIP
   Justice Said to Probe Google-ITA Deal's Impact on Internet Travel Searches
   Tribune lenders drop competing bankruptcy plan

CONTENT
   Introducing The Daily
   Apple iPhone games for children rack up shocking bills
   Will the Music Industry Ever Learn From Its Mistakes?
   Appeals Court: free Internet p*** isn't unfair competition to pay sites

PRIVACY
   Key lawmakers press Facebook on privacy concerns about user phone numbers and addresses

GOVERNMENT & COMMUNICATIONS
   Facebook treads carefully after its vital role in Egypt's anti-Mubarak protests
   FCC Amends Rules for Greater Transparency
   NIST Helps to Accelerate Federal Government Adoption of Cloud Computing

EMERGENCY COMMUNICATIONS
   Introducing ERIC PSAC

HEALTH
   US Tries Open-Source Model for Health Data Systems
   Massive Health Uses Big Data, Mobile Phones to Fight Chronic Disease

EDUCATION
   Teachers Increasingly Rely on Media and Technology

TELEVISION
   Hulu chief attacks traditional TV businesses
   DirecTV Asks FCC To Clarify What An 'MVPD' Is
   Parents Television Council: Investigate cable, satellite providers who air MTV's 'Skins'
   Surveys say: IPTV’s future could at last be on solid ground
   Carey: Fox Broadcast a Billion Dollar Business

MORE ONLINE
   What Makes a Hit Consumer Internet Service
   Fox News Editor Pushed Emphasis On Obama 'Socialism' Ahead Of 2008 Election

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WIRELESS

D BLOCK ALLOCATION
[SOURCE: The Hill, AUTHOR: Sara Jerome]
Why do AT&T, Verizon support D Block reallocation? One reason (among others) is that service could sometimes be degraded for their customers if the D Block is auctioned off to commercial providers. Situations could arise where their customers would be unable to make calls. That's unacceptable to the companies. The AT&T press office emailed that it would be "unfair" to its customers. Proponents of this plan, however, say service would not suffer greatly. Instead, both carriers have backed a proposal reallocating the valuable D Block of spectrum directly to public safety, so the network-sharing issues don't arise in the first place, although this option is more expensive for the government. That argument is winning.
benton.org/node/49489 | Hill, The
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VERIZON IPHONE VS AT&T IPHONE
[SOURCE: Wall Street Journal, AUTHOR: Walter Mossberg]
For millions of iPhone owners, or would-be iPhone owners, who dislike AT&T's wireless service or prefer Verizon Wireless service, liberation is at hand. Starting Feb. 10, Apple's iconic smart phone finally will be available in the U.S. on a second carrier, Verizon, instead of just on AT&T, which has been the exclusive iPhone network since the device launched in 2007. Current Verizon customers can pre-order the iPhone Feb 3. Complaints about dropped voice calls, or calls that can't be initiated, on AT&T's service, especially on iPhones, have been legion. Meanwhile, Verizon has enjoyed a general reputation for reliable voice service. So, many frustrated AT&T iPhone users and those scared off by reports of dropped calls, or simply loyal to Verizon, have been eagerly anticipating this move. To these people, I'm here to say: Yes, there are some major benefits to having your iPhone on Verizon, but, as with all good things, there are also trade-offs. What about the trade-offs? Chief among them is data speed. In speed tests, AT&T's network averaged 46% faster at download speeds and 24% faster at upload speeds. This speed difference was noticeable while doing tasks like downloading large numbers of emails, or waiting for complicated Web pages to load. AT&T's speeds varied more while Verizon's were more consistent, but overall, AT&T was more satisfying at cellular data. Also, because Verizon's iPhone -- like most other Verizon phones -- doesn't work on the world-wide GSM mobile-phone standard, you can't use it in most countries outside the US. Finally, the Verizon model can't fetch Internet data at the same time it is making a voice call, something the AT&T model can do.
benton.org/node/49509 | Wall Street Journal | NYTimes - David Pogue | USAToday - Edward Baig
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AT&T SWEETENS DATA PLANS
[SOURCE: New York Times, AUTHOR: Jenna Wortham]
After Verizon announced it would begin selling the iPhone on its network, the company introduced several data plan offerings to help strengthen its position against AT&T, the exclusive carrier of the iPhone in the United States for the last several years. In particular, Verizon offered an unlimited data plan for $30 a month -- a sharp contrast to AT&T, which currently provides a 2-gigabytes of data a month plan for $25 a month. Verizon also said its phone would allow customers to supply Wi-Fi to as many as five different devices using the iPhone’s 3G data connection. AT&T only allows its customers to tether a single device. But just as Verizon is set to start taking iPhone orders from existing customers beginning at 3 a.m. Feb 4, AT&T is upping its ante. On Feb 2, AT&T announced it would being allowing some of its smartphone customers to use their phone’s data connections to supply an Internet connection to other mobile devices with a special mobile hotspot application. The company did not clarify whether this offer would extend to iPhone owners but did note in a press release that the application coincides with the release of the HTC Inspire 4G on Feb. 13. AT&T also said it would double the data cap for smartphone customers who sign up for the tethering feature to 4-gigabytes per month, at no additional monthly cost.
benton.org/node/49491 | New York Times
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TEXT-BASED MOBILE MARKETING
[SOURCE: CTIA-The Wireless Association, AUTHOR: Press release]
CTIA and the Mobile Marketing Association announced the creation of a joint task force that will streamline the process for Common Short Code (CSC)-based mobile marketing programs in the US. Led by executives from the two organizations and from the mobile marketing program ecosystem, this new group will focus on two areas: shortening time-to-market for mobile marketing programs and supporting those mobile marketers who best adhere to consumer protection guidelines. These efforts will help businesses connect efficiently with millions of wireless customers, while helping to build increased consumer trust in mobile marketing campaigns. With more than six billion text messages sent and received daily in the US, many large and small businesses have deployed successful CSC-based mobile marketing programs. CSCs are five- or six-digit numbers that are used for text or multimedia messaging mobile marketing programs such as mobile giving, tele-voting and marketing promotions. According to an August 2010 Mobile Marketing Association “View from Madison Ave.” study, these CSC marketing campaigns are increasingly becoming a mainstay for many leading brands, non-profits and governments. The joint task force will work to create uniform guidelines across carrier networks. It will also carefully balance monitoring of the CSC-based mobile marketing programs to ensure consumers are protected and campaigns are appropriately functioning. Finally, the group will recommend mechanisms to reward consistently trustworthy performers and explore potential enforcement mechanisms to drive greater compliance.
Michael Weinberg, staff attorney for Public Knowledge, said: "We are encouraged that the wireless industry has at last recognized that there is a problem with the long time it takes to obtain a short code, and has set up a group to work on the issue. At the same time, we look forward to further explanations about who will be on the task force, how the new rules will be compiled and whether there will be a mechanism for those denied short codes to have a dispute resolved. The process would benefit from a lot more transparency and broader inclusion from all stakeholders. While the industry has been quick to boast about the importance of short codes in public safety, civic engagement, and commercial activity, they have failed to provide safeguards for the public that reflect the critical importance of short codes. In the larger sense, the fact that the industry continues to treat short codes as mere ‘marketing campaigns’ rather than a vital service similar to phone service underscores the reason why the Federal Communications Commission needs to act on our long-standing petition to recognize that texting is the 21st Century equivalent of a voice call — and deserves the same protection. They are increasingly integrated into everything from political action campaigns to evacuation alerts. No industry self-regulation, however well intentioned or well managed, can replace the safety net of FCC oversight consumers deserve."
benton.org/node/49441 | CTIA-The Wireless Association | Public Knowledge
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INTERNET/BROADBAND

COURT REJECTS VERIZON ATTEMPT TO PICK JUDGES
[SOURCE: National Journal, AUTHOR: Juliana Gruenwald]
The US District Court of Appeals for the District of Columbia turned down Verizon's request to have the same panel that ruled in favor of Comcast's challenge to the Federal Communications Commission's network neutrality enforcement action take up Verizon's lawsuit against the agency's latest action on the issue. The court denied Verizon's request without explanation. The court has not taken any action on the merits of Verizon's challenge to the FCC network neutrality order. "We're pleased with the Court's swift action and look forward to the dismissal of the other part of Verizon's request," Public Knowledge said.
benton.org/node/49454 | National Journal
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VERIZON AGAINST FCC, NOT FCC RULES
[SOURCE: Politico, AUTHOR: Eliza Krigman]
Verizon says it has no business plans that would violate the Federal Communications Commission’s network neutrality order, despite industry speculation that such plans prompted the company to file a lawsuit against the agency. “The real fundamental issue that we’re addressing doesn't have anything to do with a specific business proposal,” said Link Hoewing, assistant vice president of Internet and Technology Issues at Verizon. “It has to do with the FCC establishing its authority where it doesn't have any.” “The ideal thing is for Congress to act,” Hoewing added. Verizon worries that, without instruction from lawmakers, the agency will continue to be pressured to expand its authority in this area but without clear direction or authority. The carrier’s opposition to the net neutrality regulations has some in the tech community scratching their heads. Over the summer, Verizon co-authored with Google a framework for rules that bears a striking resemblance to the framework adopted by the FCC. It also had a prime seat at the negotiating table while the agency developed its “Open Internet” order.
benton.org/node/49511 | Politico
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REBRANDING THE 'NUCLEAR' OPTION
[SOURCE: The Hill, AUTHOR: Sara Jerome]
After industry spent months calling broadband reclassification "the nuclear option," Public Knowledge (PK) is using the same term to describe a proposed repeal of network neutrality rules. Reclassification was seen as a stricter option for the Federal Communications Commission (FCC) to take in comparison to passing broadband regulations only. After the FCC chose the less severe approach, House Republicans still said they will try to repeal these regulations. PK's director of government affairs Ernesto Falcon writes:"Opponents to an open Internet have made clear that despite the support from AT&T and the cable industry, they intend to invoke the nuclear option known as the Congressional Review Act (CRA). They have stated, despite significant corporate support (and significant dissent from public interest groups) that the Federal Communications Commission’s open Internet rules resemble George Orwell’s 1984 Big Brother." In contrast, network neutrality opponents do not see the CRA attempt as excessively aggressive. House Republicans argue that they are just fighting an action the FCC took without any congressional directive to do so. They have panned the FCC's process as opaque and say the regulations will stifle innovation and investment.
benton.org/node/49452 | Hill, The | Public Knowledge
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DIVERSITY

MINORITY MEDIA OWNERSHIP DATA
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
Jesse Jackson's Rainbow PUSH and two dozen other groups (including the benton Foundation) have called on the FCC to release data on how many women and minorities own broadcast outlets. Citing the agenda for the FCC's Feb. 8 meeting that includes a status report on the agency's "fact-based data-drive decision making," the groups want to know why the FCC hasn't released data most broadcasters turned in in July and the FCC promised to make accessible and searchable online. While the groups conceded some of that info might be available in the Media Bureau database, they said it was not yet available in a "searchable, aggregated and cross-referenced" form and that Media Bureau staffers could not say when it would be. "As the Commission considers how to improve the agency's fact-based, data-driven decision-making at its February 8th meeting, the signers to this letter are writing to express concern over the Commission's lack of comprehensive, reliable, and searchable information concerning the extent of broadcast station ownership by minorities and women," the groups said in a letter to the FCC commissioners. "Fourteen months have passed since the revised Form 323s were due to be filed. More than six months have passed since the revised Form 323s were actually filed. More than four years have passed since the problems with the earlier filing process were brought to the FCC's attention. Yet, the public still lacks meaningful access to the data in a searchable, aggregated, and cross-referenced format." Among those also signing on to the letter was the National Organization for Women, National Hispanic Media Coalition, Office of Communication, Inc. of the United Church of Christ, Media Access Project, and Free Press.
benton.org/node/49479 | Broadcasting&Cable
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SEGREGATION AND SOCIAL MEDIA
[SOURCE: AdAge, AUTHOR: Pepper Miller]
[Commentary] As marketers continue to drop traditional ethnic media and scramble to create the "ultimate cross-cultural digital experience and platform," one should take note of America's behavior on the web. Youth are everywhere on the web. But ethnic Internet users, both younger and older, are "congregating in spaces where there are people like them, or where they feel comfortable bringing people like them," says Ebele Mora, a millennial, and Chief Financial Officer of TUV Media. Most multicultural and LGBT groups seek places on the web beyond cross-cultural lifestyles in an effort to connect with others from their own culture or sexual orientation. Congregating provides the opportunity for these segments to engage in shared experiences related to their culture, lifestyle, and music. Importantly, given that society penalizes those who openly discuss racial issues, these spaces provide a refuge for honest conversations that affect their communities. One black Gen Y Facebooker confessed that she frequently, temporarily blocks her white Facebook friends -- and prays they don't notice -- so that she can have open, honest discussions with her black friends. Marketers need to be careful about abandoning ethnic strategies in the digital space. The opportunity is to understand what these ethnic digital platforms are and who, how where and when these consumers are showing up so that brands can better connect and engage them.
benton.org/node/49451 | AdAge
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CONTENT

THE DAILY FOR THE IPAD
[SOURCE: Fast Company, AUTHOR: Kit Eaton]
The Daily -- a collaboration between Steve Jobs' company and Rupert Murdoch's News Corp. -- will cost $0.99 per week, or at a small discount for $40 per year, and is promising to include over 100 pages of original news in each issue. The daily newspaper for the iPad will be billed automatically, to customers iTunes accounts, on a weekly or annual basis. In terms of features, the newspaper features traditional text-based stories, video and interactive content -- and much was made of the 360-degree photos that'll let photojournalism go far beyond what's possible in a printed context. Embracing the social media phenomenon, you'll be able to share stories on Twitter, Facebook and via email, and the mechanism seems very Apple-esque -- you simply click to clip, save and press send to share the content you've chosen. This is a boon for some, who'd wondered if News Corp. would pull its habitual "linking is the enemy of news" stunt--and represents something of a reversal in attitude. Stories within The Daily will also link out to the Web, so it's not a completely closed ecosystem. However, the openness of the app is limited--though the presenters were wary about answering questions about "discoverability" it seems like you'll be able to share content with other readers of the Daily, and non-readers too--but the non-readers won't get any of the app's interactivity and there's nowhere on the Web they can link to it. This is almost in line with the comment that "hundreds of billions of people sharing content on the web, and we want to be a part of it." In terms of real-time "serious" journalism, the paper is hitting the ground running--and has a reporter, Josh Hearst, in place in Egypt to report on ongoing events there.
benton.org/node/49444 | Fast Company | ars technica | paidContent.org
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PRIVACY

FACEBOOK AND PRIVACY
[SOURCE: Los Angeles Times, AUTHOR:]
Reps. Joe Barton (R-TX) and Ed Markey (D-MA), major congressional players on privacy issues, wrote to Facebook Chief Executive Mark Zuckerberg expressing concerns about the social networking site's plans to share user addresses and phone numbers with developers and websites. “Facebook needs to protect the personal information of its users to ensure that Facebook doesn't become Phonebook," said Rep Markey, who co-chairs the Congressional Privacy Caucus along with Rep Barton and two senators. "This is sensitive data and needs to be protected.” The letter highlights the increased scrutiny Facebook is getting on Capitol Hill as lawmakers consider whether to update online privacy laws. Markey said he plans to introduce legislation that will include a requirement for a do-not-track mechanism so the online behavior and personal information of children won't be tracked.
benton.org/node/49480 | Los Angeles Times | Politico
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GOVERNMENT & COMMUNICATIONS

FACEBOOK AND EGYPT
[SOURCE: Washington Post, AUTHOR: Cecilia Kang, Ian Shapira]
In Egypt, the tried-and-true tool for opponents of President Hosni Mubarak in recent years has been Facebook. Most recently, it was on Facebook - which boasts 5 million users in Egypt, the most in the Arab world - where youthful outrage over the killing of a prominent activist spread, leading to the protests in Cairo's Tahrir Square and Mubarak's promise to step down this year. But Facebook, which celebrates its seventh birthday Friday and has more than a half-billion users worldwide, is not eagerly embracing its role as the insurrectionists' instrument of choice. Its strategy contrasts with rivals Google and Twitter, which actively helped opposition leaders communicate after the Egyptian government shut down Internet access. The Silicon Valley giant, whether it likes it or not, has been thrust like never before into a sensitive global political moment that pits the company's need for an open Internet against concerns that autocratic regimes could limit use of the site or shut it down altogether.
benton.org/node/49507 | Washington Post
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EX PARTE RULES
[SOURCE: Federal Communications Commission, AUTHOR: ]
The Federal Communications Commission is amending its rules concerning communications with staff and interested parties concerning FCC rulemaking proceedings. The Report and Order adopts a new rule requiring all oral ex parte communications to be documented, and their content described. This reform should enable those participating in our proceedings as well as those observing them to better identify and understand the issues being debated before the FCC. New electronic filing rules will empower anyone using the Internet to access this information, and stronger enforcement provisions will bolster these new requirements. Given the complexity of the issues we must decide and the far-reaching impact our decisions often have, we believe these initiatives to increase transparency serve the best interests of the Commission, the entities we regulate, and the public we serve. We also continue this proceeding with a Further Notice of Proposed Rulemaking that asks for comment on whether the interests of fairness and openness would be served by adopting real party-in-interest disclosure rules based on those that apply in many court proceedings.
FCC Commissioner Michael Copps said the FCC, through this action, is making "true improvements to the transparency and openness of its work."
benton.org/node/49483 | Federal Communications Commission | Commissioner Copps
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TELEVISION

HULU ATTACKS TRADITIONAL TV
[SOURCE: Financial Times, AUTHOR: Matthew Garrahan]
Jason Kilar, the chief executive of Hulu is heading for a showdown with News Corp, Walt Disney and NBC Universal, the media companies that own the online video site, after he criticized their traditional television business model. In a blog post, Kilar said “traditional TV has too many ads” while Hulu’s advertising is “2-times as effective as traditional TV video advertising.” The comments will likely exacerbate tensions between Kilar and the media companies. Relations between the two sides are already strained over his plans to redefine Hulu by adding more exclusive television programming. The blog post came as a shock to the company’s owners, who are heavily invested in the US television business. News Corp owns the Fox network, while Walt Disney owns the ABC network, and NBC is now owned by Comcast, the cable group. Hulu currently carries thousands of hours of programming much of which is provided by the three media companies. Kilar has been willing to risk future access to that content by angering Hulu’s owners with his expansion plans. Hulu was initially created as a response to YouTube by giving its owners a legitimate online outlet for their programming. Before Hulu was launched ABC, for example, was streaming its own programming. However, Hulu’s owners have become alarmed at Kilar’s attempts to redefine the company as a premium online video destination with programming that is not available anywhere else. His comments have exacerbated those tensions. He concludes the blog post with: “We are crazy. All entrepreneurs need to be.”
benton.org/node/49504 | Financial Times | read Kilar's post
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WHAT'S A MVPD?
[SOURCE: Multichannel News, AUTHOR: Todd Spangler]
DirecTV is wondering whether the Federal Communications Commission's video navigation rules -- which cover "multichannel video programming distributors," traditionally used to refer to cable, satellite and telco TV companies -- would apply to broadband-connected devices like Roku set-top boxes. In an FCC filing, the satellite TV giant asked the agency to clarify "what type of entity qualifies as an MVPD whose services and equipment would be subject to the Commission's requirements." The FCC has proposed an AllVid regime that would require MVPDs to conform to an interoperable, nationwide standard for providing third-party consumer-electronics devices access to programming and related information. AllVid would supersede the FCC's current CableCard rules, which apply only to MSOs. According to DirecTV, "the universe of those who qualify as an ‘MVPD' remains unknown," and may apply to online video distributors, such as Roku, which recently announced that it has delivered 1 billion streams of video programming from more than 135 sources such as Netflix, Hulu Plus and Amazon Video on Demand. This week Roku added the live stream of Al Jazeera English to its lineup, a network not carried by any major U.S. pay-TV provider. "If the Commission required MVPDs to make their content available to all AllVid devices on a disaggregated basis, would device manufacturers be given access to Roku's content from Netflix, Hulu, and Amazon to present any way those manufacturers saw fit?" DirecTV asked.
benton.org/node/49502 | Multichannel News
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SKINS CONTROVERSY BROADENS
[SOURCE: The Hill, AUTHOR: Sara Jerome]
The Parents Television Council (PTC) is urging its members to contact state attorneys general offices about MTV's controversial series "Skins." PTC wants an investigation of satellite and cable providers that air the controversial show. The teen drama depicts sex and drug use by high school students. One grievance is that the youngest actor is 15. PTC says local providers may have violated state and local laws against child pornography and exploitation when they distributed the content. The show recently lost its ninth advertiser, but the network said MTV has "not lost any advertising dollars" and maintained that the controversy has actually been good for the show.
benton.org/node/49488 | Hill, The | Reuters
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