August 2011

FCC ruling brings e-Rate funding to more applicants

Several hundred more e-Rate applicants will get funding for the wiring, routers, switches, servers, and other equipment needed to bring high-speed Internet access into classrooms, thanks to a decision from the Federal Communications Commission.

Granting a petition from e-Rate consulting firm Funds For Learning (FFL), the FCC on Aug. 22 directed the Universal Service Administrative Co. (USAC), the agency that administers the e-Rate, to issue funding commitments for these so-called Priority Two services at the 80-percent discount level for funding year 2010. On its own motion, the FCC also reversed its previous decision to deny Priority Two funding below the 80-percent discount level and directed USAC to make available funds for Priority Two requests at all discount levels. That means all 2010 e-Rate applicants whose requests are eligible for e-Rate discounts will receive funding—marking only the second time in the program’s 14-year history that USAC will be able to fund internal connections for all eligible applicants.

Motorola Deal Means Google Controls Digital Pipeline

[Commentary] On the surface, one might think Google/Motorola wants to emulate Apple's success in the SmartPhone area. Not only do you create the great software, but you design the product too, like the iPhone.

That went from nothing to become Apple's cash cow. It's a very lucrative business that will do nothing but grow. Now Google can make the phones and the software, too. Smart strategy. There's a lot of money there. But that's not where the really BIG money is. The real money is in controlling the digital pipeline to smartphones and home TVs. These are the current "dumb pipes" that the CellCos and ISPs deliver. With the acquisition of Motorola, Google has access to the set-top hardware technology to make those dumb pipes a lot smarter. And make Google a lot richer.

Google takeover pays off for Motorola employees, too

CEO Sanjay Jha isn't the only one who's going to make out on his $12.5-billion sale of Motorola Mobility Holdings to Google. The all-cash deal also will provide a long-awaited reward for Motorola employees who survived the double whammy of recession and restructuring.

Motorola Mobility accepted a $40-a-share offer last week from Google. That should put employees whose stock options have been worthless into the black. In June 2009, Motorola allowed employees to exchange options at a rate of roughly 2.25 old ones for one new one. After Motorola Mobility separated from the public-safety business known as Motorola Solutions Inc. in January, those options were priced at $24.24 each, for a potential 39% gain. Some unvested options and restricted stock awards will be exchanged for Google stock, according to securities filings. Becoming a Google employee also will have its perks. Google, whose shares have traded between $450 and $639 over the past year, likely will hand out options and restricted stock as incentives to keep Motorolans in key positions in the fold.

IT think tank sides with LightSquared on GPS spectrum issues

The Information Technology & Innovation Foundation, backed by the biggest IT and telecom vendors, has filed detailed comments with the Federal Communications Commission stating that high-precision GPS device makers have ignored government warnings guidelines in their receiver designs, purposely building devices that listen into LightSquared’s L-band frequencies. Those comments largely echo the claims LightSquared has been making for several weeks

A Cloud over Ownership

Our possessions define us. Yet today the definition of possession itself is shifting, thanks to cloud services that store some things we hold dear on distant Internet servers. When those belongings reside in Netflix's video service, Amazon's Kindle bookstore, or Apple's coming iCloud service, they become impossible to misplace, and easier to organize and access than before. They also gain new powers over us, and slip free of powers we once held over them—powers that have shaped our thinking and behavior for centuries. One consequence is to give the companies that provide cloud services tremendous amounts of unchecked control over these possessions. In some cases, that control has already been abused.Despite the supposed revolution wrought by digitization, mass computing has until now left the fundamental nature of our possessions untouched. Collections of content have adorned the shelves and walls of our homes, schools, and courts since the Enlightenment.

Hispanic Media: Faring Better than the Mainstream Media

Spanish-language media remain important to a changing, more acculturated, and more U.S.-born Hispanic population in the United States. And in the last year, Spanish-language media tended to fare better overall than their mainstream English-language counterparts.

According to the 2010 U.S. Census, the nation’s Latino population grew to more than 50 million, more than double its size in 1990, and up 46.3% since 2000.1 It is also the nation’s youngest ethnic group. The median age of Latinos is 27, while for non-Hispanic whites it is 42 and for non-Hispanic blacks it is 32. Among Latinos, a majority are bilingual. However, as births have become more important for Hispanic population growth than the arrival of new immigrants, the nation’s Latino population is also becoming more U.S.-born. All of these factors could pose a threat to Spanish-language media operations. So far though, the contrary has occurred.

  • Hispanic newspapers overall lost circulation in 2010, but not nearly to the extent of the English-language press. The total number of Spanish-language newspapers remained stable.
  • The story in television was even more positive. Univision, the largest Spanish-language network by far, continued to grow, reaching audience sizes that compete with the three major English-language broadcast networks (ABC, CBS and NBC). In 2011, it also announced the launch of a 24-hour Spanish-language news station.
  • Radio is growing as well. The number of Spanish-language radio stations increased in 2010, and more Spanish-language radio companies began measuring for Arbitron, the standard method of rating radio stations.
  • Magazines showed improvement too, with year-over-year growth in ad spending.
  • On the digital front, while Hispanic Americans do not access the Internet at the same rates as other Americans, there is growth, and bilingual Latinos are already heavily online.

Workforce one of three keys to Army's cyber future

Less than a year after it first became operational, the Army's cyber command is facing one of the same challenges that the rest of the military services and many civilian agencies are up against: recruiting and retaining a workforce that can fight in and defend cyberspace.

Growing an effective cyber workforce that can support the needs of the Army's operational commanders is one of three lines of effort the fledgling cyber command is pursuing as part of a new strategic plan. As part of its goal toward the network of the year 2020, the Army envisions elite, specialized cyber units that are pervasive throughout the service and can embed with even the smallest Army organization to deliver offensive and defensive capabilities.

The Internet May Soon Include All of the Things Around You

Why can't we go online to track down the things we really want to find -- like car keys and iPods? It turns out you soon will be able to do exactly that, owing to the coming of something called the Internet of Things. Instead of connecting online with other people , we will link up with the objects we own and love. Compared with our current “Internet of Whatever,” this could be a real step up.

Information Technology and Innovation Foundation
Tuesday, September 13, 2011
9:30 AM-11:00 AM

The proliferation of new products, devices and networks has prompted a debate about the need to update spectrum policies. In an upcoming report, ITIF will advocate a set of policies that will make more spectrum available for innovative uses. It will propose acceleration of the reassignment of spectrum from legacy single-purpose networks, such as over-the-air TV to high-demand, multi-purpose networks, such as mobile broadband. Incentive auctions, a second DTV transition, clear spectrum rights, and reassignment of government spectrum to public use will be among key recommendations. Please join ITIF for a discussion of these policy issues and recommendations.

Participants:

Richard Bennett
Senior Research Fellow, ITIF

Larry Downes
Senior Adjunct Fellow, TechFreedom

Blair Levin
Communications and Society Fellow, Aspen Institute

Additional participants TBA.