May 2011

BENTON'S COMMUNICATIONS-RELATED HEADLINES for TUESDAY, MAY 24, 2011

The FCC's Emergency Response Interoperability Center Public Safety Advisory Committee headlines today's events http://benton.org/calendar/2011-05-24/

CYBERSECURITY
   Cybersecurity enforcement plan could backfire, Sen Collins warns

INTERNET/BROADBAND
   Chairman Walden slams FCC's broadband report
   Rural Kansas fiber optic network almost ready [links to web]
   CenturyLink beats Silverton in Round 1 over fiber optics [links to web]

AT&T/T-MOBILE
   The AT&T/T-Mobile Merger -- Benefits for Consumers and Workers
   AT&T: Keep Qualcomm and T-Mobile Reviews Separate

MORE SPECTRUM/WIRELESS
   House GOP fears big taxpayer tab for public safety network
   LightSquared cell network knocks out first responders' GPS in tests
   FCC to consider proposal that could boost Clearwire network speeds
   T-Mobile kills unlimited data, unveils new tiered data plans for smartphones
   Yes, Clearwire really is on the ropes [links to web]
   Some Sprint customers seeing overage charges due to Google Voice integration [links to web]
   Homes, cars and phones slowly linking up [links to web]
   Carriers to revamp tablet service pricing [links to web]
   Raise fines for those who text while they drive - editorial [links to web]

CONTENT
   British Lawmakers Join Fray as Twitter Tests Law [links to web]
   80% of Mobile Video Views Happen on Apple Devices [links to web]
   Netflix isn't swamping the Internet; ISPs are overstating their congestion problems - analysis
   Is Netflix Poised To Replace Much Of The TV Syndication Business? [links to web]

JOURNALISM
   NBC-Owned TV Stations Look for Nonprofit Partners
   Grants for Investigative Reporting [links to web]
   The Elephant in the Green Room [links to web]
   Strauss-Kahn Arrest Tops news Week [links to web]

TELEVISION
   PBS proposes to interrupt primetime shows with promo and underwriting credits

MEDIA OWNERSHIP
   Twitter acquires TweetDeck
   Microsoft to fight €899m Brussels fine
   Liberty Says Nook Inspired B&N Bid [links to web]
   Facebook to assemble global team of 'diplomats'
   One Year Later, AdMob Making Its Mark on Google [links to web]
   Silicon Valley’s euphoria is tech bubble version 1.5 - editorial [links to web]

HEALTH
   For health IT firms, regulatory questions abound [links to web]
   HHS unveils health IT competency exams [links to web]
   Healthcare Puts Tablets To The Test [links to web]
   2012 presidential election promises big HIT players [links to web]
   Raise fines for those who text while they drive - editorial [links to web]

GOVERNMENT & COMMUNICATIONS
   White House Beefs Up Online Rapid Response [links to web]

POLICYMAKERS
   Matt Wood to Join Free Press as Policy Director [links to web]
   Boucher joins AT&T-backed advocacy group [links to web]

MORE ONLINE
   Three dead after Foxconn factory blast, Apple investigating [links to web]
   Being 'Technology-Infused' Proves Taxing for Affluent [links to web]

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CYBERSECURITY

CYBERSECURITY HEARING
[SOURCE: nextgov, AUTHOR: Aliya Sternstein]
A key lawmaker assessing a White House bill to strengthen cybersecurity warned that the proposal's plan for policing critical commercial networks -- by disclosing audits of their security practices -- could inadvertently steer US adversaries to vulnerable targets. "The evaluation of that [company's security] plan would be publicly accessible," Sen. Susan Collins (R-Maine), ranking member of the Homeland Security and Governmental Affairs Committee, said at a hearing. "We don't want to give those that would do us harm a roadmap on to how to attack our critical infrastructure."
The panel's chairman, Joe Lieberman (I-CT), and Sen Collins -- despite her criticism -- have introduced wide-ranging cyber legislation that largely dovetails with the executive branch's ideas. One of the exceptions is the regulation of critical infrastructure systems, or networks such as power grids that, if attacked, could devastate the economy or harm public safety. The private sector operates the majority of such cyberspace services.
The Administration's proposal takes the light-handed approach of publicly naming companies that fail in independent inspections of their network protections -- instead of shutting down their networks or fining them.
"The biggest lever here would be transparency," said Philip Reitinger, the top cybersecurity policy official at the Homeland Security Department. He stressed that the purpose of the openness is not just to shame companies into compliance, but also to let the financial markets and customers take into account a firm's privacy and security protections.
Added Ari Schwartz, senior Internet policy adviser for the National Institute of Standards and Technology, "If they do it deadly wrong, you're going to have brand impact potentially." The White House text also offers a carrot: Companies with stellar cyber records could be given preference in competitions for federal business contracts.
benton.org/node/66498 | nextgov | National Journal | Politico
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INTERNET/BROADBAND

WALDEN SLAMS FCC BROADBAND REPORT
[SOURCE: The Hill, AUTHOR: Sara Jerome]
House Communications Subcommittee Chairman Greg Walden (R-OR) was incredulous about the Federal Communications Commission report that found broadband is not being deployed in a speedy manner. The report emphasized that "more than 100 million Americans do not subscribe to broadband." The report is controversial because industry sees it as a pretext for regulation. The FCC used last year's negative findings to help justify network neutrality regulations passed in December. Chairman Walden made it clear that he thinks the findings are without merit. “It is one thing to recognize that some areas of the country -- typically rural -- are difficult to serve; it is quite another to say that broadband is not being reasonably and timely deployed to all Americans," he said. "The former only requires the FCC to consider reform of the Universal Service Fund; the latter is a claimed excuse to impose network neutrality and to further regulate the Internet,” he said.
benton.org/node/66496 | Hill, The | B&C
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AT&T/T-MOBILE

CWA ON AT&T/T-MOBILE
[SOURCE: Communications Workers of America, AUTHOR: ]
In a filing at the Federal Communications Commission, the Communications Workers of America argues that AT&T’s $39 billion acquisition of T-Mobile is good for U.S. consumers and workers. It presents a real opportunity to accelerate deployment of high-speed Internet, narrow the digital divide, improve quality of service and expand workers’ rights in the wireless industry. The merger’s benefits for consumers, workers and the general public include the following:
T-Mobile was going to be sold to either AT&T or Sprint. AT&T is the better option. AT&T is financially strong, has a good track record with past mergers, uses the same technologies as T-Mobile, has worked with the union to bring back 3,000 outsourced jobs and allows its workers to make their own decisions about whether or not to join a union. Sprint is financially weak, has a poor merger track record, uses different technologies than T-Mobile, and actively interferes in workers’ decisions about whether or not to join a union.
The merger will expand access to high-speed wireless Internet to 97% of the population.
The merger could have a positive impact on prices and service quality. Wireless prices declined 33% from 1999-2011 despite significant mergers. Even after this merger there will still be many competitors in individual markets. Furthermore, the Federal Communications Commission and the Department of Justice will likely require AT&T to sell all or part of its assets in specific markets where it is determined to have too much market power.
The impact of the merger on jobs. CWA will work to ensure that there will be no involuntary job loss, that any workers adversely affected will be able to transition into other jobs, and that T-Mobile workers are given the opportunity to obtain a voice in the transition. In the long term, a post-merger AT&T will be better able to retain and increase jobs than either company could do separately.
The merger will give T-Mobile’s 20,000+ non-management workers a voice in the workplace.
benton.org/node/66495 | Communications Workers of America
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AT&T RESPONDS TO FILING ON QUALCOMM & T-MOBILE TRANSACTION REVIEWS
[SOURCE: AT&T, AUTHOR: William Cook Jr]
AT&T Mobility and Qualcomm urged the Federal Communications Commission not to combine its evaluation of AT&T's proposed $1.93 billion purchase of Qualcomm's MediaFLO spectrum with the FCC's evaluation of AT&T's proposed $39 billion acquisition of T-Mobile USA. Their letter is a response to a petition filed by Cincinnati Bell Wireless, MetroPCS, Ntelos, Sprint Nextel, the Rural Cellular Association and the Rural Telecommunications Group asking that the FCC combine the proceedings. These parties are all vehemently opposed to AT&T's acquisitions, arguing they will give AT&T too much market power. In the letter, AT&T and Qualcomm argue the FCC has refused to consolidate other proceedings under similar circumstances. The companies also said the licenses involved in the proceedings are different and the transactions are not related.
benton.org/node/66307 | AT&T
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MORE SPECTRUM/WIRELESS

HOUSE GOP PUBLIC SAFETY MEMO
[SOURCE: The Hill, AUTHOR: Sara Jerome]
Republicans on the House Commerce Committee remain wedded to the goal of building a cost-friendly public safety network even though the White House and senators in both parties have backed a more expensive option. A GOP memo drafted to prepare staff for a May 25 hearing shows that cost is a serious hang-up for the committee Republicans as Congress debates how to build a communications network for police and firefighters. The public safety lobby wants Congress to hand over a valuable chunk of airwaves known as the D Block along with billions in federal funding, a proposal with broad backing — but not among House Republicans. "While we all share the goal of creating a nationwide interoperable public safety network, questions remain about how to achieve it," the memo says. The Commerce Committee memo pointed out that the center of gravity in this debate has moved away from fiscal hawks since the last Congress. This year, the Administration sided with public safety advocates.
benton.org/node/66320 | Hill, The
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LIGHTSQUARED INTERFERENCE
[SOURCE: nextgov, AUTHOR: Bob Brewin]
Initial tests of a controversial cellular broadband network planned by LightSquared showed the company's system knocked out Global Positioning System receivers used by first responders. LightSquared tested its system last month at Holloman Air Force Base (NM) with the participation of state police vehicles and county ambulances, both of which experienced outages from the company's cell tower, according to Bill Range, director of the State of New Mexico E911 program. LightSquared cell system operates in the 1525-1559 MHz and 1626.5-1660.5 MHz bands, and the Federal Communications Commission directed the tests to determine if the network interfered with GPS systems that operate in the nearby 1559-1610 MHz bands. Range, in a May 11 letter to Col. Bernard Gruber, director of the Air Force Global Positioning Directorate, said the results of the April tests, "substantiate concerns that the LightSquared network will cause interference to GPS signals and jeopardize 911 and public safety nationwide."
benton.org/node/66294 | nextgov
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CLEARWIRE BOOST ON FCC AGENDA
[SOURCE: Fierce, AUTHOR: Mike Dano]
During its June 9 open meeting, the Federal Communications Commission will consider a proposal that would allow operators in the 2.5 GHz band to make use of wider channel bandwidths. If the proposal is approved by the FCC, it could allow WiMAX operator Clearwire to expand from its recommended 5.5 MHz channel bandwidths to 20 MHz channel bandwidths or more, thus allowing the carrier to offer significantly faster upload and download speeds. To be clear, a number of pieces must fall into place before Clearwire can actually widen its channels and boost its network speeds. First, the FCC must issue a Further Notice of Proposed Rulemaking on the topic and solicit comments from the public. If the FCC does approve the proposal, then network equipment vendors will have to build suitable equipment for wider spectrum channels -- and Clearwire must deploy that equipment. Nonetheless, "the rule change would be beneficial to companies like Clearwire who may adopt wider channelization plans in the future," noted Clearwire spokesman Mike DiGioia.
benton.org/node/66315 | Fierce
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T-MOBILE KILLS UNLIMITED DATA PLANS
[SOURCE: Fierce, AUTHOR: Sue Marek]
T-Mobile USA quietly eliminated its $30 per month unlimited data plan for smartphones in favor of four new tiered data plans. The operator also said that if customers go over their allotted data cap they will not incur overage charges but instead will have their data speeds throttled down to an EDGE, or 2G, experience of around 100 Kbps or less.
T-Mobile customers with smartphones can now select from the following new options:
$10 for 200 MB per month
$20 for 2 GB
$30 for 5 GB
or $60 for 10 GB
According to a T-Mobile spokeswoman, customers will be notified via a free text message when they exceed their monthly data threshold. At that time, they will have the option to change their data plan to one with more data or continue to use their existing plan with the reduced speeds for the remainder of the month.
benton.org/node/66314 | Fierce
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CONTENT

NETFLIX ISN'T SWAMPING THE INTERNET
[SOURCE: IT World, AUTHOR: Kevin Fogarty]
[Commentary] A report showing Netflix makes up a third of total Internet traffic is inaccurate enough – or at least the reports about it are inaccurate enough – to show not very many people in either the press or vendor marketing understand the network they base their business on. There are two important points here, both relevant to people who do IT for a living, not just those who either dislike data caps or do like Netflix:
First, the report didn't say Netflix eats a third of the whole Internet; that assumption was off base enough to prompt Forbes to run a piece trying to correct it, but not quite succeeding. Sandvine – an Ontario-based networking vendor – issued a report estimating that streaming media from Netflix make up 30 percent of downstream traffic during peak times. What Sandvine meant was that Netflix traffic spiked heavily during prime time – when most people are home and watching something other than what's on TV – but only across the last mile. TechCrunch posted some graphics showing what's travelling across the nation's networks during peak times, and in what volumes. Netflix comes out on top, but only with the caveats below. Netflix uses content-distribution services to make sure its content is located close to customers, so when you click Play the file you see is being downloaded from somewhere nearby, not from Netflix' central database. The portion of the network Netflix hogs is only the ISP's edge connections – from a distribution hub to the house of Netflix' subscribers.
benton.org/node/66488 | IT World
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JOURNALISM

NONPROFIT NEWS PARTNERS
[SOURCE: TVNewsCheck, AUTHOR: Mark Miller]
The Local Media Division of NBCUniversal announced that it is seeking applications from nonprofit, locally-focused news organizations interested in entering into cooperative news gathering and reporting arrangements with NBC owned-and-operated TV stations in New York, Los Angeles, Chicago, Miami, Philadelphia, San Francisco, Dallas-Ft. Worth, Washington and Hartford-New Haven (CT). The company said the announcement “furthers a commitment to localism made by NBC and Comcast when the companies announced the formation of their joint venture in December of 2009.” NBC will seek to establish cooperative arrangements between nonprofit news groups and NBC local news teams. These arrangements may include a variety of elements, ranging from story development to sharing of news footage and other content resources; shared used of technical facilities and personnel; on-air opportunities; promotional and other assistance; and cross-linking/embedding of websites.
NBC said that organizations interested in applying should have “robust news gathering capabilities; a track record of accuracy, fairness and independence in their journalistic efforts; and an ability to provide diverse viewpoints and programming.” Requests for proposals specific to each market, together with application forms and more detailed information about the application process are now available at the URLs listed below. Applications, which will be reviewed by an advisory council that will include NBC Local Media news directors, standards and policy representatives, regulatory affairs executives, and senior counsel, must be submitted by July 22. The company’s goal is identify successful candidates by the end of summer 2011.
benton.org/node/66300 | TVNewsCheck
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TELEVISION

PBS UNDERWRITING
[SOURCE: Current, AUTHOR: ]
The Public Broadcasting Service will begin breaking into programs with underwriting and promo spots four times per hour on an experimental basis beginning this fall, it told station members at the PBS National Meeting. The move could be controversial for the network, which has traditionally prided itself on offering uninterrupted programming over its 40-year history. In the trial run of the proposed format change, Nova and Antiques Roadshow will have breaks at approximately five, 20, 40 and 55 minutes after the start of an hourlong program. National underwriting will run at five and 55; national or local spots promoting programs or other pubTV services will be inserted at 20 and 40. Sources say the shows were selected as they are the most easily segmented to accommodate the interruptions. The immediate purpose of the proposal is not to squeeze in a significant amount of underwriting time.Program content time will remain unchanged at 50 minutes, 10 seconds. PBS says it's objective is to clear away underwriting and promo spots from the beginning and end of programs so that viewers are more likely to see a little of the next program and stay tuned rather than tuning away to catch the start of programs on other channels.
benton.org/node/66311 | Current
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MEDIA OWNERSHIP

TWITTER BUYS TWEETDECK
[SOURCE: CNNMoney, AUTHOR: Laurie Segall]
Twitter has acquired TweetDeck, an application for organizing the display of tweets, for more than $40 million in a mix of cash and stock, according to sources close to the deal. TweetDeck has been the subject of speculation about deals for months. TechCrunch surfaced reports, citing a $40 million-$50 million acquisition. The deal has yet to be announced, but papers finalizing the deal were signed May 23.
benton.org/node/66503 | CNNMoney
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MICROSOFT FIGHTS FINE
[SOURCE: Financial Times, AUTHOR: Nikki Tait]
Lawyers for Microsoft embarked on a final tussle with the European Commission on May 24 in the battle over antitrust issues that have ensnared the software group for more than a decade. Most of the issues between the US company and competition regulators in Brussels were settled at the end of 2009. However the company has continued to pursue an outstanding appeal in one of the European Union’s top courts over the right of the Commission to impose penalties during the lengthy legal struggle. The fine at issue is the €899m ($1.3bn) the Commission imposed on Microsoft for non-complying with the watchdog’s earlier decision that it had breached EU antitrust rules – for which it was fined €497m. The software company became the first company in the history of European Union competition policy to be fined for non-compliance – and the combined amount of the two fines remains the largest penalty the Commission has imposed. Microsoft, however, has argued that the Commission gave it insufficient guidance to allow it to rectify satisfactorily the situation and avoid the second penalty. Its lawyers were presenting the company’s arguments at the Luxembourg-based General Court – part of the European Court of Justice structure.
benton.org/node/66515 | Financial Times
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FACEBOOK DIPLOMATS
[SOURCE: San Jose Mercury News, AUTHOR: Mike Swift]
With 70 percent of its more than 600 million members outside the United States, Facebook is creating its own foreign service, hiring a network of ambassadors from India to Ireland to represent the social network with foreign governments and cultures. Facebook's new global policy team will monitor the local political landscape and act as multilingual, TV-friendly communicators in countries and for cultures that, in many cases, have very different values and laws about privacy and personal communications than the US. Facebook is confronting its emergence as a global organization whose membership is much larger than the population of most countries, and whose technology can antagonize both Middle Eastern dictators and European democracies fretful about privacy. The international directors of policy, as Facebook calls them, will grapple with those challenges. "This is the right investment for us to make because we want to have better relationships with regulators and policymakers across Europe and around the world," said Debbie Frost, a Facebook spokeswoman. "It's important that we have a presence, so people can have a direct line into Facebook. You limit the scope for misunderstandings."
benton.org/node/66483 | San Jose Mercury News
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