May 2011

Take off the broadband cap, AT&T-- I can't take it!

[Commentary] It’s a fate worse than death. It’s almost a fate worse than dial-up. The mere phrase fills me with a bone-chilling horror, making me shake like a leaf that has just gotten out of the shower without a towel. Broadband caps.

Broadband, by itself, is a word that fills me with joy, conjuring visions of unlimited fields of double rainbows and unicorns and Rebecca Black parodies. Caps are nice, in their way. But combine the two, and it’s horrifying. Yes, this is the week that AT&T joins Comcast and other providers in capping the amount of data broadband users can consume per month without paying a fee. Are they trying to railroad us back into the 90’s? Remember the 90’s, when you had to monitor how long you were online and pay accordingly? When there was that awful hissing and clicking and discordant twanging of electronic bedsprings to indicate that you were getting online? I’m quaking again.

NPR's midlife moment

[Commentary] Forty years ago this week, a former television news correspondent inaugurated a momentous era in American journalism by speaking the following words into a microphone: "From National Public Radio in Washington, I'm Robert Conley with 'All Things Considered.'"

Much has changed at NPR. From an understaffed outfit that attracted a weekly audience of just 3 million in 1976, it has grown into a worldwide news organization with 18 foreign bureaus, and in 2010, it drew a weekly audience of 27.2 million. Listeners now tune in to a full menu of programs that includes not only the drive-time staples of "All Things Considered" and "Morning Edition" but also such cultural fare as "Fresh Air" and "World Cafe." In an era when mainstream media are losing ground (network TV viewership was off 3.4% last year), NPR's audience is expanding — up 3% in 2010 and 58% since 2000. Nonetheless, as "All Things Considered" celebrates its 40th anniversary, NPR finds itself at a troubling pass. The network became, once again, the target of conservative members of Congress.

The current threat feels more ominous because NPR has a structural problem. The network has an uneasy relationship with its member stations. It is in competition with local outlets for the digital future. KCRW and hundreds of others like it don't want their broadcast audiences to bypass them and listen to NPR.org on the Internet. Yet as its brisk growth attests, NPR is one of the few "good news" stories in today's mass media. The explanation for NPR's increasing popularity is obvious: the high quality of its work. Although "All Things Considered" rarely airs 24-minute documentaries now, day in and day out it produces great journalism. Just in the last few weeks it broadcast a tough but fair story by Melissa Block about the fierce emotions released by the sesquicentennial of the Civil War, which highlighted that conflict's ongoing relevance; a moving piece by Wade Goodwyn about the suicide of an Iraq War veteran suffering post-traumatic stress disorder; a thorough report by Gloria Hillard about crystal meth addiction in Riverside County; and dozens of other stories you couldn't find elsewhere. As long as NPR does this kind of work, there should be many more happy birthdays for "All Things Considered."

Cost saving hits TV and landline ownership

Lower and middle-class Americans are giving up their televisions and unplugging their landline telephones as they pinch pennies amid persistent economic stagnation.

New estimates from Nielsen, the media measurement company, show the total number of US households with a TV will be down more than 2 percentage points next year, the first decline in 20 years. Both shifts are in large part a result of dwindling disposable incomes among US consumers, which are accelerating technological and demographic trends. “The evidence suggests that what we’re seeing is a function of poverty more than it is technology,” said Bernstein Research senior analyst Craig Moffett. “The pressure is only getting worse as gas prices climb to $4 a gallon.”

Congress, Back at Work, Has FCC in Its Sights

While Congress has been off on a break over the last two weeks, the five men and women who make up the Federal Communications Commission have been able to breathe a little easier. Soon, that’s going to change.

The FCC commissioners will find themselves in the crosshairs of Rep. Greg Walden (R-OR), the powerful chairman of the House Commerce Committee’s Subcommittee on Communications and Technology, when he convenes a hearing about reforming the FCC on May 13. “Process reform at the FCC is critical,” Chairman Walden says. “Process affects policy outcome . . . When you look at the FCC and its track record, it often reaches its decision, builds its record, and loses in court. That is not the flow that similarly constructed agencies have.” The commissioners themselves have also suggested areas of reform. In a speech in March, Commissioner Meredith Attwell Baker, a Republican, slammed the commission over its process for reviewing mergers, which can drag on for what seems like an eternity. Chairman Walden, too, has gone after the merger review process, but for different reasons. In an interview with Adweek earlier this month, he sharply criticized the commission for its practice of forcing companies to accept restrictive conditions as a condition of approval.

Say What? High-Tech Messages Can Get Lost in Translation

New technologies meant to make sense of our words are, in some cases, contorting them, with results that are racy, cruel or just plain peculiar. Transcription services have become known for goofing-up voice recordings because of speaker accents and poor phone connections. Meanwhile, many a typist is bedeviled by garbled messages stemming from cramped smartphone keyboards, along with software on the devices intended to automatically correct spelling mistakes.

SmartMeters not so smart

[Commentary] The potential of wireless SmartMeters for both utilities and customers is clear: accuracy, timeliness and thriftier energy use. But in rolling out about 11 million of the devices in California, Pacific Gas & Electric has fumbled this message. It's played down buggy software, flawed installation and health worries by decided doubters. The result is a deep gulf between the utility and its customers.

Subcommittee on Communications and Technology
House Commerce Committee
Friday, May 13, 2011
9:30 a.m.
http://energycommerce.house.gov/hearings/hearingdetail.aspx?NewsID=8551



My Letter to the FCC About AT&T-Mobile: Time to Submit Yours

[Commentary] As the lead analyst for mobile devices at PCMag.com, I have reviewed more than 500 cell phones and other gadgets over the past seven years, and I'm considered an expert on the wireless industry. I believe a merger between AT&T and T-Mobile would result in less competition, fewer choices, higher prices, and less innovation. This merger is not in the interest of American consumers. AT&T's purchase of T-Mobile, AT&T and Verizon would have approximately 80 percent of U.S. wireless subscribers. AT&T claims smaller competitors such as Cricket, MetroPCS and Cellular South are threatening AT&T's business. But MetroPCS, with 8 million subscribers, would be less than 1/16 of the new AT&T's size. The other companies are even smaller. This is an elephant professing a fear of mice.

Additional concerns:

  • The merger will result in fewer handset choices for consumers.
  • The merger will result in reduced customer care quality and higher plan prices.
  • The merger will result in less innovation.
  • The merger will result in a monopoly on GSM service.
  • AT&T's argument about needing spectrum is disingenuous.
  • Holding LTE deployment hostage to a merger is reprehensible.

Rep Eshoo introduces bill to promote broadband deployment

Rep Anna Eshoo (D-CA) introduced a bill aimed at lowering the cost of deploying speedy broadband Internet lines to people's homes. The legislation requires states to include plastic pipes when they lay federal highways so that Internet lines can more cheaply be installed.

Rep Eshoo, the top Democrat on the House Commerce Communications Subcommittee, cited a Federal Communications Commission (FCC) finding that broadband is not being deployed in a reasonable and timely way — a conclusion that major companies have disputed — in her justification for the bill. "This legislation is a creative approach to more rapidly deploy broadband service, promote competition, and do so with limited federal dollars," Rep Eshoo said. "This 'dig once' policy would expand broadband at a fraction of the cost by including the conduit as roads are being built." National Cable and Telecommunications Association chief executive Michael Powell said: "We applaud Rep. Eshoo for introduction of the Broadband Conduit Deployment Act of 2011, which will facilitate the further deployment of broadband service throughout the U.S. We look forward to working with the Rep. Eshoo and other policymakers on creative solutions to lower the cost of broadband deployment so that every American can benefit from this important service."

Comcast Profit Rises on Broadband Gains, NBC Purchase

Comcast, the largest US cable company, reported an increase in first-quarter revenue and profit with the addition of broadband subscribers and the completion of a deal for control of NBC Universal.

Net income was $943 million, or 34 cents a share, compared with $866 million, or 31 cents, a year earlier. Revenue rose to $12.1 billion, from $9.2 billion a year ago, when it didn't control NBC Universal. Comcast added 639,000 new Internet, video and voice subscribers, an 8.3 percent increase from a year earlier. The company added 418,000 high-speed Internet subscribers and lost 39,000 video subscribers. Revenue from cable networks, including Bravo, CNBC and MSNBC, rose 13 percent to $2.02 billion. Ratings increased for all cable stations other than USA, said Tom Eagan, an analyst at Collins Stewart LLC in New York. Broadcast television revenue was $1.35 billion, down from $2.08 billion when results included the Olympics.