May 2011

Will Marijuana Ads Make License Renewals Go Up in Smoke?

[Commentary] Broadcasters don't know it yet, but recent actions by the Department of Justice suggest that the federal government may be moving closer to raining on their upcoming license renewals. The reason? Medical marijuana advertising.

While it seems like a recent phenomenon, the first state laws permitting medical marijuana go back some 15 years. The movement by states to permit the use of medical marijuana has grown steadily since then, with half the states in the U.S. (and the District of Columbia) now having medical marijuana laws on the books or under consideration. Of course, when an entrepreneur sets up a medical marijuana dispensary, the next step is to get the word out to the public. In the past few years, these dispensaries began approaching broadcast stations in growing numbers seeking to air advertising. In the depths of the recent recession, medical marijuana dispensaries were one of the few growth industries, and many stations were thrilled to have a new source of ad revenue. But In February 2011, the Department of Justice said that it "will enforce the [Controlled Substances Act] vigorously against individuals and organizations that participate in unlawful manufacturing and distribution activity involving marijuana, even if such activities are permitted under state law. Far more likely than widespread prosecutions of media organizations accepting medical marijuana ads are headaches for stations seeking license renewal at the Federal Communications Commission. In processing license renewal applications, the FCC must determine whether, in light of the station's past performance, renewal of its license will serve the public interest. It is an admittedly ambiguous standard, and if the federal government, via the FCC, wants to use the license renewal process to pressure broadcasters to reject all future medical marijuana ads, it is not a difficult task. Fines and the threat of non-renewal can be very effective persuaders. By severing the link that advertising offers between medical marijuana producers and the patients who use their product, the federal government might feel that it can suppress demand for that product. In reality, the advertising would likely just shift from broadcast stations to other media not so dependent upon the federal government. Regardless, broadcasters whose license renewals are caught in the middle of this power struggle between the state and federal governments will be the ones feeling the heat.

TV Everywhere approaches ubiquity, study finds

Parks Associates is predicting that TV Everywhere will be nearly everywhere by the end of 2011. In its report, "TV Everywhere: Growth, Solutions and Strategies," the Dallas-based market research company said that 81 percent of U.S. and Canadian pay TV subscribers will have access to TV Everywhere by the end of the year. The report said that traditional fast-follower Comcast is the market leader as it seeks to glue subscribers to its service and fend off outsiders such as Netflix which continue to whittle away at its basic video subscriber base.

Dr. Traci Morris Joins Native Public Media

Native Public Media (NPM) and the New America Foundation welcome Dr. Traci Morris as NPM's Director of Operations.

Morris is the principal and founder of Homahota Consulting, which provides policy analysis and research focusing on Internet use, digital inclusion, network neutrality, and development of broadband networks in Indian Country. As a member of the Chickasaw Nation of Oklahoma, Morris maintains a strong working relationship with her Tribal community And her passion for policy emerged from these strong ties and her own tribal roots. Morris has PhD in American Indian Studies and Comparative Culture and Literary Studies from the University of Arizona. She has over 10 years of university teaching experience at the University of Arizona, Arizona State University, and East Central Oklahoma University and has inspired a decade of scholars to factor in the Native perspective in their work. Her book, Native American Voices: A Reader, continues to be a primary teaching tool in colleges throughout the country.

The first quantitative and qualitative study commissioned by Native Public Media, “New Media, Technology and Internet Use in Indian County,” was co-authored by Morris and Sacha Meinrath, Director of the Open Technology Initiative at the New America Foundation, and has become a seminal resource for key decision-makers, including being extensively cited by the Federal Communications Commission in the National Broadband Plan.

Will We Define or Limit the Future?

[Commentary] Whether you look at Amazon’s outage, Sony’s network breach or the drama around Apple’s location data collection policies, you see that in all of them, the common thread was “we the people.”

Our fears, our desires and our needs were behind the huge outcry around these problems that seemed to impact millions of us. This mainstreaming of technology has opened up new opportunities, but it has and will pose a brand new kind of challenge to companies in Silicon Valley. If the hue and cry over Apple’s location data collection methodologies is any indication, then are we the people becoming the limiting factor in the evolution of technology and its adoption? Will the idea of what computing can do and what it will be in the future be limited by our collective ability to grok these changes? I mean, things aren't exactly getting less complicated. The social web is about connecting people. On some networks it is real people (Facebook) and on some networks the web connects assumed identities (Twitter). If CPU, memory and storage defined the capabilities in the PC era, then in the Internet era, we saw software being defined by processors, memory, storage and bandwidth. The Internet era eased the way to the social web. In the social web, the software and with it the frontiers of technology being defined by the marriage of network connectivity, PC-era staples and social identity.

Sen Eshoo sees red flags in AT&T merger

Rep Anna Eshoo (D-CA) says she has major concerns about AT&T's proposal to acquire T-Mobile to create the largest wireless company in the country.

"This is huge -- $39 billion," said Rep Eshoo, the top Democrat on the telecom subcommittee, during a Computer and Communications Industry Association (CCIA) event. "That's serious money, even here in this town." Declaring competition one of her top priorities as ranking member, Rep Eshoo said she is concerned that wireless prices could go up if the merger is permitted. "The [Federal Communications Commission, the Justice Department], and my subcommittee all need to very, very carefully scrutinize the merger, how it's going to impact the price of wireless voice and data services, its impact on the special access market, and whether there will be sufficient competition on a market-by-market basis to provide consumers with a choice in next generation wireless broadband," she said.

Rep Eshoo, whose Silicon Valley district includes Google and other top tech companies, says she hears repeatedly from her constituents that they'd like to see more competition in the telecom industry. "Just because you're gigantic, just saying you're competitive and you offer choice is not [enough], I don't think," Rep Eshoo said. She also raised concerns that telecom industry lobbying can sway the Congress against "common sense," pointing in particular to network neutrality rules that are opposed by House Republicans.

Throw Your Smartphone Down the Rabbit Hole

[Commentary] Do you believe in fairy tales? AT&T wants you to.

The phone giant is trying to make everyone believe that its takeover of T-Mobile would be good for jobs, innovation and the economy, while saving you hundreds of dollars on your smartphone. The opposite is true. But that didn't stop AT&T from making these claims in a 381-page FCC filing that was so filled with half-truths and fantasies that the Los Angeles Times said it came from Alice in Wonderland. "The wireless marketplace will be more competitive," AT&T claims in the filing.

For those keeping score, the phone company is actually saying that consumers will gain more choice among mobile phone carriers by subtracting T-Mobile from your options. So should it be left to Washington and one exceedingly powerful company to decide the fate of our communications? If Congress, the Federal Communications Commission and Department of Justice hear from enough people like you and me, they can muster the courage to ask the right questions of AT&T.

AT&T Beefs-Up Lobbying

AT&T at the end of April picked up TCH Group as the federal review of its $39 billion acquisition of T-Mobile heated up. Now working AT&T's case is Michael Tongour, former chief counsel to Sen Alan Simpson (R-WY); Alex Cooper, professional GOP staff on House Oversight; and Brad Holsclaw, formerly GOP Senate floor staff. That's the third pickup for AT&T this year to sell the T-Mobile acquisition (Capitol City Group as well as Peck, Madigan, Jones & Stewart). The company in total shelled out about $6.8 million in lobbying last quarter, according to the Center for Responsive Politics. By contrast, Sprint has so far snagged three new firms (Thorsen French Advocacy, Franklin Square Group and The Fritts Group). But Sprint spent just over $500,000 - far less than AT&T - in the first three months of 2011, according to CRP.

Electronic Health Records: Green or Polluter?

This is the year that billions of dollars in government incentive payments are set to begin flowing to the nation’s doctors and hospitals to encourage them to adopt computerized patient records. The goal, of course, is to help improve the quality of care and curb costs. But what about the environmental impact? That was the question asked by researchers at Kaiser Permanente, a giant health-care group, which covers 8.7 million people in nine states and the District of Columbia. Kaiser used its own system — 454 clinics and 36 hospitals, using electronic health records — as its laboratory. The answer, published in the journal Health Affairs, is that the potential environmental benefit is to reduce carbon dioxide emissions as much as 1.7 million tons a year. That’s the pollution equivalent of taking more than 300,000 cars off America’s roads.

: the Nuts, Bolts and Economics

Technology Policy Institute
May 23rd, 2011
12:00pm to 2:00pm
http://techpolicyinstitute.org/events/show/96.html

The FCC and the Administration are proposing making an additional 500 MHz of spectrum available for new wireless broadband uses, 120 MHz of which is currently used as broadcast spectrum. In order to vacate this spectrum, policymakers are proposing using voluntary incentive auctions, which will require Congressional authorization. Questions remain on how these incentive auctions would work in practice. Discussion at ": the Nuts, Bolts and Economics," hosted by the Technology Policy Institute, will focus on the economics of auctions and the nuts and bolts of how spectrum incentive auctions should be structured to provide the most efficient outcomes for stakeholders.

Confirmed panelists include:

  • Lawrence Ausubel, Professor of Economics, University of Maryland
  • Peter Cramton, Professor of Economics, University of Maryland
  • Evan Kwerel, Senior Economic Advisor, Federal Communications Commission
  • Karen Wrege, Senior Auction Consultant, Power Auctions LLC

Registration can be performed on the TPI website and questions should be directed to Ashley Creel at acreel@techpolicyinstitute.org. Members of the press should contact Amy Smorodin at asmorodin@techpolicyinstitute.org.