August 2011

FCC to combine reviews of AT&T's Qualcomm, T-Mobile deals

The Federal Communications Commission decided to combine its review of AT&T’s attempt to buy rival T-Mobile for $39 billion with a smaller deal in which AT&T is attempting to purchase the wireless licenses currently held by Qualcomm.

In a letter issued by the Wireless Telecommunications Bureau, the FCC concluded that there is enough evidence that the impact of the two deals is related and that they will be considered at the same time. A coalition of public interest groups pushed the agency to consolidate the two reviews in late April, arguing that the two deals in tandem give too much market power to AT&T. Free Press, Media Access Project, Public Knowledge, Consumers Union and the Open Technology Initiative of the New America Foundation argued that the two deals have a multiplier effect. Cincinnati Bell Wireless, MetroPCS Communications, NTELOS, the Rural Cellular Association, the Rural Telecommunications Group and Sprint Nextel also asked for the combined review for similar reasons.

Verizon Wireless Falls Flat in Response to Free Press App-Blocking Complaint

Verizon Wireless submitted its response to Free Press’ complaint about the carrier's decision to block subscribers from accessing "tethering" applications on their 4G phones. Verizon Wireless called for dismissal of the complaint, as it tried to avoid responsibility for its decision to restrict customers' ability to use the applications and devices of their choosing on its LTE network.

In June, Free Press filed a complaint with the Federal Communications Commission alleging that Verizon Wireless's actions to remove tethering applications from the Android Market were a violation of the license conditions for the spectrum on which Verizon operates its network.

Free Press Policy Director Matt Wood said, "Verizon Wireless's arguments in favor of blocking don't hold water. Its decision to block tethering applications is an anti-consumer practice that chills innovation and punishes subscribers who already pay a lot for data. It also violates specific license obligations that Verizon Wireless agreed to when it used the public airwaves to build its 4G mobile broadband business."

Publishing Gives Hints of Revival, Data Show

The publishing industry has expanded in the past three years as Americans increasingly turned to e-books and juvenile and adult fiction, according to a new survey of thousands of publishers, retailers and distributors that challenges the doom and gloom that tends to dominate discussions of the industry’s health.

BookStats, a comprehensive survey conducted by two major trade groups that was released early Tuesday, revealed that in 2010 publishers generated net revenue of $27.9 billion, a 5.6 percent increase over 2008. Publishers sold 2.57 billion books in all formats in 2010, a 4.1 percent increase since 2008. The Association of American Publishers and the Book Industry Study Group collaborated on the report and collected data from 1,963 publishers, including the six largest trade publishers. The survey encompassed five major categories of books: trade, K-12 school, higher education, professional and scholarly.

Groups Call for Scientists to Engage the Body Politic

When asked to name a scientist, Americans are stumped. In one recent survey, the top choice, at 47 percent, was Einstein, who has been dead since 1955, and the next, at 23 percent, was “I don't know.” In another survey, only 4 percent of respondents could name a living scientist.

While these may not have been statistically rigorous exercises, they do point to something real: In American public life, researchers are largely absent. Trained to stick to the purity of the laboratory, they tend to avoid the sometimes irrational hurly-burly of politics. For example, according to the Congressional Research Service, the technically trained among the 435 members of the House include one physicist, 22 people with medical training (including 2 psychologists and a veterinarian), a chemist, a microbiologist and 6 engineers. Now several groups are trying to change that. They want to encourage scientists and engineers to speak out in public debates and even run for public office.

When it comes to global warming and a host of other technical issues, “there is a disconnect between what science says and how people perceive what science says,” said Barbara A. Schaal, a biologist and vice president of the National Academy of Sciences. “We need to interact with the public for our good and the public good.”

Wisconsin Recall Gets Record Spending in ‘First Battle’ of 2012 Election

The political balance of power in Wisconsin may shift today as voters in six state Senate districts decide whether to recall a half-dozen Republicans and add fuel to attempts to oust first-term Governor Scott Walker. Spending on the recall campaigns, aimed at six Republicans Aug 9 and two Democrats Aug. 16, may almost triple the combined cost of all 115 state legislative races in 2010, according to the nonpartisan Wisconsin Democracy Campaign.

Costs may approach $40 million, the group said. The record number of recall elections has disrupted a normally apolitical Wisconsin summer, with Republican and Democratic interest groups -- most from outside the state -- spending tens of millions of dollars in television and radio ads that mirror the nation’s political divisions. Spending estimates are rising. Political interest groups registered with the Wisconsin Government Accountability Board, the state’s elections bureau, reported $14.2 million in spending as of yesterday. At least $14 million in additional spending has come from unregistered groups for television ads and other efforts, said Michael Buelow, research director for the Wisconsin Democracy Campaign.

Hispanic Media Disconnect

Spanish-language broadcasters raked in a record $2.15 billion in 2011-12 upfront commitments, but executives at Univision and Telemundo believe that many marketers are still guilty of undervaluing the Hispanic TV marketplace.

Despite earning bragging rights as the only broadcasters to post ratings gains this year, the two rivals are all but segregated from the English-language broadcasters. Not only are Univision and Telemundo’s respective upfront presentations pushed to the margins of the mid-May schedule, but both nets are obliged to wait for the Big Five to wrap up their business before they can begin engaging with buyers. (The Hispanic nets nailed down the last of their upfront deals in late July, a good seven weeks after ABC, CBS, NBC, Fox, and The CW finished writing deals.) Univision hauled in $1.75 billion in early commitments for the upcoming TV season, and while that’s nothing to sneeze at -- to put the number in perspective, it’s more or less the same amount NBC took in during its upfront sellathon -- media spend on Hispanic TV remains disproportionately slight.

India's Tech Sector Braces for Slowdown

India's technology sector is bracing for a potential slowdown in growth after the historic U.S. credit downgrade over the weekend, which heightened fears of a double-dip recession in the largest outsourcing market and sparked a sell-off in IT stocks.

Indian technology companies earn more than 80% of their revenue from the U.S. and Europe. Coupled with a full-blown debt crisis looming over Europe, the Standard & Poor's downgrade of the U.S. debt rating is raising concerns of a return to the recessionary times of 2008, when the local software industry bore the brunt of lower spending by cash-strapped clients. The Bombay Stock Exchange technology index closed 4.3% lower Monday, leading the 1.8% downfall in the broader Sensex. The downgrade may lead to a slowdown in business in the immediate term, Shami Khorana, president of the Americas division of HCL Technologies Ltd., said late Sunday. Clients in the U.S. might feel cost pressures immediately and go slow in their spending decisions, Mr. Khorana added.

Britain Takes New Tack in Piracy Fight

Britain plans to legalize something that many of its citizens have been doing already, perhaps unaware that they were breaking the law: copying music or movies from compact discs or DVDs onto other storage devices, like iPods.

The government said that it planned to legalize so-called format-shifting as part of a broad overhaul of the country’s copyright laws aimed at bringing them up to speed with digital technology and the fight against piracy. Across much of the rest of Europe, format-shifting has long been permitted. “We can’t carry on saying that businesses should embrace technology but then not allow consumers to use everyday technology to play works they’ve paid for,” said Vince Cable, the business secretary.

India wants special monitoring access for Twitter, Facebook

India's communications ministry has been asked by the home ministry to monitor social networking websites such as Twitter and Facebook amid fears that the services are being used by terrorists to plan attacks.

The request suggests that the Indian government is trying to broaden the scope of its online surveillance for national security. Telecommunications service providers in India provide facilities for lawful interception and monitoring of communications on their network, including communications from social networking websites such as Facebook and Twitter, in accordance with their license agreements, Milind Deora, the minister of state for communications and IT, told Parliament, according to the country's Press Information Bureau.

Virgin Media claims TiVo is changing viewing habits

Virgin Media has noted a "marked shift" in the way its subscribers are tracking down their favourite stations and shows. According to the cable company's latest study into entertainment trends, 25 per cent of channel views made by its TiVo customers did not start from the electronic programme guide (EPG). Instead of browsing the EPG, the TiVo service allows viewers to find what they want to watch by using the intelligent search feature, which brings up suggested content as they type in their preferences. Other digital platforms rely solely on the EPG for navigation.