April 11, 2011 (Google-ITA)
BENTON'S COMMUNICATIONS-RELATED HEADLINES for MONDAY, APRIL 11, 2011
We're still catching up on all that happened last week and we'll post summaries soon (check http://benton.org/headlines/newsletter and http://benton.org/taxonomy/term/6).
Here's a quick look at this week's agenda http://benton.org/calendar/2011-04-10--P1W/
OWNERSHIP
Justice Department Requires Google to Develop and License Travel Software in Order to Proceed with Its Acquisition of ITA - press release
Google CEO Promotes Engineers in Management Shuffle [links to web]
At Gannett, Furloughs but Nice Paydays for Brass [links to web]
WIRELESS/SPECTRUM
Republicans Agree On 'Insatiable' Demand For Wireless Broadband
Spectrum Inventory Tools: Touts And Doubts
£5bn ‘wasted’ on mobile phone bills
PRIVACY
Who Really Sent That E-Mail? - editorial
LOBBYING
Silicon Valley Makes Peace With Washington - analysis
With antitrust mutters growing, Apple boosts presence in DC [links to web]
TELEVISION
Couric’s Rocky Path to a Likely Parting With CBS [links to web]
More Media Time, on Various Screens [links to web]
NCTC Extends HITS Agreement With Comcast Media Center [links to web]
UK broadcasters oppose copyright changes [links to web]
Cable business still whets M&A appetites [links to web]
MORE ONLINE
Spending deal cuts proposed funds for R&D [links to web]
Comcast, AT&T Building 100-Gig Backbones With Cisco [links to web]
OWNERSHIP
GOOGLE-ITA DECISION
[SOURCE: Department of Justice, AUTHOR: Press release]
The Department of Justice announced that in order for Google to proceed with its proposed acquisition of ITA Software, the department will require Google to develop and license travel software, to establish internal firewall procedures and to continue software research and development. The department said that the proposed settlement will protect competition for airfare comparison and booking websites and ensure those websites using ITA’s software will be able to power their websites to compete against any airfare website Google may introduce. The department said that the acquisition, as originally proposed, would have substantially lessened competition among providers of comparative flight search websites in the United States, resulting in reduced choice and less innovation for consumers. The department said that Google will also be required to provide mandatory arbitration under certain circumstances and provide for a formal reporting mechanism for complainants if Google acts in an unfair manner. The Department of Justice’s Antitrust Division filed a civil antitrust lawsuit today in U.S. District Court in Washington (DC) to block the proposed acquisition. At the same time, the department filed a proposed settlement that, if approved by the court, would resolve the competitive concerns of the lawsuit.
Under the proposed settlement, Google will be required to continue to license ITA’s QPX software to airfare websites on commercially reasonable terms. QPX conducts searches for air travel fares, schedules and availability. Google will also be required to continue to fund research and development of that product at least at similar levels to what ITA has invested in recent years. Google will also be required to further develop and offer ITA’s next generation InstaSearch product to travel websites, which will provide near instantaneous results to certain types of flexible airfare search queries. InstaSearch is currently not commercially available, but is in development by ITA.
To prevent abuse of commercially sensitive information, Google will be required to implement firewall restrictions within the company that prevent unauthorized use of competitively sensitive information and data gathered from ITA’s customers. The proposed settlement delineates when and for what purpose that data may be used by Google. Google is also prohibited from entering into agreements with airlines that would inappropriately restrict the airlines’ right to share seat and booking class information with Google’s competitors. Finally, the proposed settlement provides for a formal reporting mechanism for complainants if Google acts in an unfair manner.
benton.org/node/54975 | Department of Justice
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WIRELESS/SPECTRUM
INSATIABLE WIRELESS BROADBAND DEMAND
[SOURCE: Multichannel News, AUTHOR: John Eggerton]
According to a copy of the majority staff memo on this week's House hearing on spectrum, Republicans are convinced more spectrum must be freed up for wireless, but they will look at a range of places to find it. "There are a number of spectrum bands that hold the potential to help us meet our goals, but there are tough decisions to be made about how, when, and for what purpose spectrum is put to use," according to the Republican staff memo on the upcoming April 12 hearing in the House Communications Subcommittee. The memo pointed to some of broadcasters concerns about the option of auctioning more of their spectrum. "While there are few that have outright opposed incentive auctions," the memo said, "there are concerns as to how they could be done with what spectrum. Broadcasters are emphasizing that incentive auctions be truly 'voluntary.' Broadcasters have also raised concerns about how repacking will be handled once licensees voluntarily auction off their spectrum. "
But the memo makes clear the Republicans are on board with the wireless industry's argument that they need more spectrum from somewhere.
"Everyone agrees that there needs to be additional spectrum for wireless broadband," according to the memo. "American consumers have an increasingly insatiable demand for wireless broadband Internet access. Smartphone's now comprise more than one-third of all wireless devices sold in a given quarter. App stores, such as Apple's iTunes App Store, Google's Android Marketplace, and Research in Motion's BlackBerry App World, have delivered more than 10 billion apps to wireless consumers. Cisco reports that the amount of data delivered over wireless networks last year was three times the traffic of the entirety of the Internet in 2000. Given these growth figures, it is no surprise that the Federal Communications Commission's National Broadband Plan and the President of the United States are calling for an additional 500 MHz of spectrum to be allocated for wireless broadband use in the next five years."
benton.org/node/54961 | Multichannel News
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SPECTRUM INVENTORY TOOLS
[SOURCE: CommLawBlog, AUTHOR: Harry Cole]
[Commentary] In February, 11 Members of Congress sent Federal Communications Commission Chairman Julius Genachowski a letter observing (again) that it would be a good idea to conduct an inventory so that we can all have “a complete picture of who is licensed to use what airwaves and how effectively they are being used”.
In a response dated March 18, Chairman Genachowski advised that the FCC has “inventoried the spectrum over which it has jurisdiction”, thereby producing “one of the most substantial and comprehensive reviews of spectrum in [the Commission’s] history”. He then waxed eloquent about two “tools” – “LicenseView” and “Spectrum Dashboard” – that “reflect our understanding of where the most significant spectrum opportunities lie”. He said: "LicenseView is a comprehensive online portal to information about each spectrum license; it presents data from multiple FCC systems in a searchable, user-friendly manner. The Spectrum Dashboard, originally released last year, identifies how non-Federal spectrum is currently being used, who holds spectrum licenses and where spectrum is available."
I think it’s fair to conclude from this that the Chairman was telling the folks in Congress that if they want to see the FCC’s spectrum inventory, they need look no farther than LicenseView and Spectrum Dashboard.
But, if you visit these websites, you'll find some disclaimers:
"The information contained [in LicenseView] has not been relied upon by the Commission to analyze the competitive marketplace or assessing [sic] the spectrum holdings of service providers in any particular geographic area."
"The Spectrum Dashboard does not constitute the official licensing records for the Commission. Specifically, the FCC makes no representations regarding the accuracy or completeness of the information maintained in the Spectrum Dashboard." and "The data and analyses contained herein are not relied upon by the Commission in analyzing the competitive marketplace or assessing the spectrum holdings of wireless service providers in any particular geographic area."
benton.org/node/54958 | CommLawBlog
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UK CELL PHONE STUDY
[SOURCE: Financial Times, AUTHOR: Simon Mundy]
Mobile phone users in the UK are “wasting” nearly £5bn ($8bn) a year by choosing inappropriate contracts, accounting for more than a third of mobile operators’ retail revenues, according to a new study. The research, by price comparison website Billmonitor, found that 40 per cent of mobile subscribers opted for a calling allowance that was too large, typically using only about a quarter of the calling time that was paid for. The group could save a cumulative £2.62bn by switching to cheaper contracts, said Billmonitor, which is endorsed by telecoms regulator Ofcom. A further 22 per cent of customers exceeded their allowance of calls, text messages and data usage, wasting £1.53bn, while £740m was ascribed to a failure to use free benefits. The study was based on analysis of 28,417 mobile phone bills with O2, Orange, Vodafone and T-Mobile, the UK’s biggest mobile networks. Ofcom said that, while it had regulations to prevent “mis-selling” of telephone services, it was inevitable that many consumers would not make the effort to secure the best deal.
benton.org/node/54951 | Financial Times
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PRIVACY
EPSILON BREACH
[SOURCE: New York Times, AUTHOR: Editorial staff]
[Commentary] Americans are right to be concerned about a huge data breach at an online marketing company, Epsilon, which resulted in the theft of names and e-mail addresses for customers and employees of some of the nation’s largest businesses, including Citibank, Disney and Verizon. Epsilon issued a statement assuring that no other information was compromised. But millions of consumers could still be vulnerable to sophisticated identity-theft ploys — “spear phishing” — in which scammers target e-mails to specific people and make it appear as if they came from a company they trust. Familiarity can lure victims into clicking on links, downloading malware, or responding to requests for account numbers or passwords. This is not an isolated case. The breach at Epsilon underscores the urgent need for a federal standard of data safety that ensures companies follow adequate policies and procedures to protect consumers’ information and determines companies’ legal liability for breaches. As Congress debates new data privacy rules, it should put data security at the forefront. Possibilities include imposing maximum periods for retaining personal data and rules about how to protect data that is flowing through corporate networks, stored on corporate servers or, increasingly, on the cloud. It certainly seems risky to have one company handle sensitive information about the customers of so many large firms. Consumers must also be vigilant. For starters, they should be wary about clicking on any e-mail attachment, even if it comes with a seemingly personal greeting from a business they know and trust.
benton.org/node/54972 | New York Times
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LOBBYING
SILICON VALLEY AND DC
[SOURCE: Wall Street Journal, AUTHOR: L Gordon Crovitz]
[Commentary] It's time for Silicon Valley to rethink its relationship with Washington (DC) and Brussels. After generations of technology entrepreneurs keeping their distance, high-tech companies over the past decade became among the biggest employers of lawyers, lobbyists and fixers. As in Detroit, reliance on big government by Silicon Valley undermines the focus on competition and innovation. There's a lesson here for Microsoft and Google—and for Facebook and Twitter as the likeliest next-generation targets of complaints by frustrated competitors. In high-tech, by the time the political and legal systems catch up to an issue, the issue is moot. Soon after the Justice Department considered forcing Microsoft to break itself into separate Windows and Internet Explorer businesses, Mozilla launched a popular competing browser. Apple and Google later did the same.
benton.org/node/54966 | Wall Street Journal
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