July 2011

When will the (traditional) telephone hang up?

The very idea of what is a phone call is changing, and changing fast. What used to be a fixed phone turned into anywhere calling. Now Facebook, Google and Skype have made calls about video chat, friends and social circles, not phone numbers. It’s perhaps time to rethink the very notion of a phone call and what defines the classic phone network.

Tom Evslin, who has spent his entire life in telecom and data services industries, believes it’s time for Federal Communications Commission (FCC) to come to grips with the reality that people are choosing cellular or Internet voice over traditional phone systems. He points to a recent report from the National Center for Health Statistics that notes that by 2018, only 6 percent of the U.S. population will be using the public switched telephone network (PSTN), which to non-telecom geeks means: your home phone from the phone company. Evslin, who is on the Technical Advisory Committee (TAC) for the FCC, notes in a blog post that “without continued government support, the PSTN would probably disappear before 2018 since the carriers’ cost to maintain the many miles of copper and the rest of the system doesn't go down nearly as quickly as revenue from subscribers declines.”

Bookseller And Publisher Associations Oppose Amazon/Book Depository Merger

As the Office of Fair Trade prepares to investigate Amazon’s acquisition of UK-based online bookseller The Book Depository, the UK Booksellers Association and Publishers Association are entering the fray.

The BA is formally opposing the merger, and the PA is preparing to do so. “Amazon’s current position could be perceived by booksellers already as that of a de facto monopoly,” Booksellers Association CEO Tim Godfray told The Bookseller, and he believes that the merger could put Amazon “into an even stronger position.” The Office of Fair Trade is soliciting public comments on the merger, which must be submitted by July 18. The OFT will decide by August 30 whether to clear the deal or refer it to the Competition Commission.

Campaigns, Copyrights, and Compositions: A Politician's Guide to Music on the Campaign Trail

[Commentary] If you think the recent set-to between Tom Petty and GOP presidential hopeful Rep. Michele Bachmann (R-MN) sounds familiar, you’re not alone.

The scuffle over Bachmann’s use of “American Girl” is hardly the first time a politician has come under fire for using a song without the artist’s permission. Backlash from angry artists has left candidates from 1996 Republican presidential nominee then-Sen. Bob Dole (Sam & Dave’s “I'm a Soul Man” in 1996) to then-Sen. Barack Obama (again Sam & Dave, this time with “Hold On, I'm Comin’” in 2008) singing the blues. Remarkably, in many cases the artist lacks legal standing to prevent the use of his song on copyright grounds. He does, however, have a number of other rights of action, as well as the pedestal from which to generate bad publicity. The fallout from these incidents is messy, but entirely avoidable with a little footwork and know-how. So, to all politicians: keep this checklist handy. You’re about to get a crash-course in how to avoid eliciting an angry public statement from a pop icon.

Mercury News to manage Oakland, Contra Costa papers

The Bay Area News Group told employees that it is shifting control of the Contra Costa Times and Oakland Tribune in the hands of executives at the San Jose Mercury News. The company's top East Bay editors now based in Walnut Creek – Executive Editor Kevin Keane and Managing Editor Pete Wevurski – are leaving.

Strickling: Government Spectrum Holdings Are Limited

National Telecommunication and Information Administration chief Lawrence Strickling told the House Commerce Committee that the US government doesn't have a huge swath of underused wireless spectrum to auction to mobile carriers, although agencies are working to identify spectrum bands that can be sold.

Several lawmakers, pointing to a predicted spectrum shortage for mobile broadband providers, called for the NTIA to move ahead quicker with efforts to identity government spectrum that could be converted to commercial use. Strickling disputed lawmaker assertions that some federal agencies are inefficiently using their spectrum. "Compared to commercial services, federal agencies do not have a lot of spectrum in the prime bands," said Strickling. Federal agencies have exclusive use of only 18 percent of the "prime" spectrum between 225MHz and 3.7GHz, while commercial and other users, have exclusive control of about 30 percent, Strickling said. The remaining spectrum is shared between federal agencies and other users, he said.

Tiered Verizon plans no biggie for most customers, says Consumer Reports

Most Verizon customers won't be shedding tears over new data-plan tiers, according to a new analysis from Consumer Reports.

The product-testing and consumer survey magazine said today that the majority of Verizon customers will not see a spike in their wireless data costs, as it has found that monthly data usage "averages no more than about 500MB per month," or one-fourth of the 2GB data consumption limit in Verizon's new $30 plan. And since Verizon currently charges $30 for its standard unlimited data plan, the vast majority of users who stay under the 2GB cap will not see any increase in their monthly wireless bills. Users who typically consume more than 2GB of data a month can pay $50 for a 5GB plan or $80 for a 10GB plan. This doesn't mean Verizon gets a total thumbs up, of course. Consumer Reports also notes that unlike its rivals at T-Mobile and AT&T, Verizon is not offering a cheap data plan for users who use feature phones that don't utilize data-heavy applications. In other words, Verizon customers will find themselves paying $30 for 2GB of data no matter how little they consume while T-Mobile and AT&T subscribers have the option of getting 200MB monthly plans for $10 and $15, respectively. As for as overage charges go, Verizon's decision to charge users $10 per extra GB consumed is the same as AT&T's $10 per GB charge, although AT&T does charge users a significantly higher $15 per extra MB of data they use if they subscribe to the low-cost 200MB data plan.

Culture, income, location affect broadband adoption in Washington region

People who live in the Washington (DC) region are pretty well connected when it comes to high-speed Internet service — but there are still large swaths of the population that are unwilling or too financially strapped to plug in.

Having a low income is the most consistent trait among non-adopters, while Hispanics and rural residents are also less likely to be broadband subscribers, according to a four-month study of government data. The data show that in the DC region and elsewhere, the debate over the “digital divide” has become less about access to broadband and more about the far-stickier issue of affordability. The analysis shows that broadband adoption is greater in the Washington suburbs — wealthy Fairfax County (VA) ranked first in connectedness while DC was 17th. Manassas (VA) ranked last among the 29 area counties and municipalities surveyed. Counties located farthest outside the beltway generally ranked the lowest, though there were exceptions.

Why The Facebook-Microsoft Alliance Should Worry Google

When Google executive chairman Eric Schmidt said recently that a "gang of four" rules today's tech industry, he notably left out Microsoft, arguing that Google, Apple, Amazon, and Facebook control the landscape. Here's why he's wrong.

Facebook and Microsoft cemented their relationship with the announcement of a new strategic partnership. Part of a deal with Skype, which Microsoft is in the process of acquiring for $8.5 billion, the new service will give Facebook's hundreds of million users access to free video chats with anyone on the network. It was a partnership that both Facebook's Mark Zuckerberg and Skype CEO Tony Bates described as mutually beneficial: Facebook gains access to a world-class video service, while Microsoft gains access to the world's largest social network. Outside advertising and Skype partnerships, Microsoft has also forged a critical partnership between Facebook and Bing for social search data. Given Microsoft's long and continuing relationship with Facebook, it's wrong to exclude the Redmond-based company from the conversation -- the Microsoft-Facebook partnership makes room, at the very least, for a "gang of four-and-a-half."

And given Facebook and Microsoft's widening footprint in industries Google lusts after, it's perhaps no surprise Schmidt would like to pretend the latter company does not exist. (He even went so far as to say that PayPal and Twitter might round out the fifth and sixth gang members, and not Microsoft, which he does not consider a driver of consumer products.) With Bing's leverage of Facebook social data, Microsoft now has a leg-up against Google in search. Facing the Skype-Facebook partnership, Google is launching Google+ at a significant disadvantage. And with Windows Phone 7, with whatever Facebook decides to contribute to its social elements, there will be even more competition for Google's Android platform.

FCC Publishes Semiannual Regulatory Agenda

Twice a year, in spring and fall, the Federal Communications Commission publishes in the Federal Register a list in the Unified Agenda of those major items and other significant proceedings under development or review.

This agenda includes long-term and completed actions in the Consumer and Government Affairs Bureau, the Office of Engineering and Technology, the International Bureau, the Media Bureau, the Office of Managing Director, the Public Safety and Homeland Security Bureau, the Wireless Telecommunications Bureau, and the Wireline Competition Bureau. Fun summer reading for the whole family.

FCC Information Collections Being Submitted for Review and Approval to the Office of Management and Budget

The Federal Communications Commission (FCC), as part of its continuing effort to reduce paperwork burdens, invites the general public and other Federal agencies to take this opportunity to comment on FCC information collection.

Comments are requested concerning:
a) whether the proposed collection of information is necessary for the proper performance of the functions of the Commission, including whether the information shall have practical utility;
b) the accuracy of the Commission’s burden estimate;
c) ways to enhance the quality, utility, and clarity of the information collected;
d) ways to minimize the burden of the collection of information on the respondents, including the use of automated collection techniques or other forms of information technology; and
e) ways to further reduce the information collection burden on small business concerns with fewer than 25 employees.

Written comments should be submitted on or before August 8, 2011.

Benton

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