September 2011

Political and industry wrangling likely will delay cybersecurity reforms

Republicans are set to deliver House Speaker John Boehner (R-OH) proposals for comprehensive cybersecurity legislation early next month, but disagreements over regulating critical infrastructure sectors and partisan friction make it unlikely the House and Senate will agree on a final big bill by year's end.

In June, when Speaker Boehner announced the formation of the Republican-only task force, Jim Langevin (D-RI), co-chairman of the bipartisan cybersecurity caucus, immediately issued a statement condemning Boehner's rejection of two-party cooperation. The 12-member task force includes many committee chairmen with jurisdiction over cybersecurity matters, including Rep. Daniel E. Lungren (R-CA), chairman of the Homeland Security Committee's cyber panel.

New satellite could revolutionize battlefield communications

The Naval Research Laboratory plans to launch an experimental, $75 million satellite that U.S. ground forces can use for on-the-move communications with standard military handheld or back radios.

The Tactical Satellite-4 (TacSat-4) will zoom around Earth in an elliptical orbit at altitudes ranging from 435 miles to 7,470 miles, keeping the spacecraft far closer than the 22,000-mile orbit of geostationary communications satellites, according to the Operationally Responsive Space Office at Kirtland Air Force Base (NM), which funded the launch and first six months of use. Michael Hurley, head of spacecraft development for the Naval Research Lab, said from the TacSat-4 launch site in Kodiak (Alaska). He said the low orbits will allow ground forces for the first time to communicate with a military satellite using omnidirectional antennas on their radios while on the move, rather than stopping to set up a satellite antenna.

AT&T, T-Mobile Antitrust Suit Spurs FCC to Restart Special Access Inquiry

The Federal Communications Commission announced that the agency was asking for new data on the pricing and the competitive environment around the Special Access market.

Special Access has come to the surface because of its inclusion as a major point in the antitrust complaints by Sprint and Cellular South in the AT&T/T-Mobile antitrust lawsuit. However, Special Access goes far beyond the needs of wireless companies. While Special Access is getting a lot of attention right now because wireless companies use the DS1, DS3 and Ethernet lines that make up the Special Access infrastructure for their backhaul from cell towers. But in reality, virtually every company that uses any kind of external network access is using Special Access in one way or another. This means the pricing and competitive information that the FCC gathers, and uses for any subsequent ruling, can directly affect the bottom line of your business. The timing of the announcement coincides with the antitrust action by the Department of Justice, but that wasn't intentional. In fact, left to its own devices, the FCC probably would never have moved. It required a Writ of Mandamus filed by the Ad Hoc Telecommunications Users Committee and several other public interest groups to force the FCC to move forward. The Ad Hoc group has already asked the FCC to take action to force the transparency and competition it thinks is necessary.

Colleges struggle with students' data demand

University of Missouri students arrived on campus this fall with a slew of new electronic toys and immediately wrought havoc with the school's wireless network.

Early on, too many gadgets were vying for attention, leaving some students unable to connect. There was, of course, a lot of virtual hand wringing and outrage from students furious and frustrated over the slow or severed connections. Still, it was far from a total crash. "It was only in certain places, large lecture halls and crowded areas," said Elise Moser, a laptop-armed freshman from Maryland Heights. "I'd get it in one class but then spend all the next class trying to get on the Internet." The problems were traced to a software glitch and quickly fixed. But the incident is a reminder of the challenges faced by campuses nationwide striving to keep up with the needs of increasingly mobile students and faculty. Like other schools, the University of Missouri-Columbia is in a state of perpetual upgrade, adding more Internet capacity and mobile access points all the time. But this new school year already is proving to be notable in one regard, said Terry Robb, director of information technology.

The True Cost of Net Neutrality

[Commentary] The Federal Communications Commissions new network neutrality rules stand little chance of surviving in court. In the middle of the FCC’s rancorous deliberations last year, a federal appellate court rejected efforts to sanction Comcast for an alleged violation of the agency’s earlier Open Internet policy statements. The court held the FCC had no authority from Congress to enforce net neutrality or otherwise regulate broadband providers.

Congress may well put an end to the rules. In the on-going budget fight, net neutrality may prove a tempting bargaining chip for Democrats with higher priority sacred cows than a likely-illegal agency rulemaking. Wharton economist Gerald R. Faulhaber and Internet pioneer David Farber estimate network neutrality regulation decreased the value of C Block spectrum by 60%. "The evidence speaks loudly and eloquently: Imposing network neutrality regulation reduces the value of the affected telecommunication asset and thus reduces the incentive to invest in such assets,” they wrote.

Why USF Reform Matters

The battle over Universal Service Fund reform isn't grabbing the kind of headlines that other regulatory squabbles are, but it is a significant issue for the U.S. telecom market for multiple reasons. Here's what you need to know about regulatory reform:

  • Why you should care: First, the Federal Communications Commission's decision as to how USF will be changed essentially determines who has the best shot at providing broadband in unserved and underserved areas of the U.S. going forward. And by default, that means what the FCC decides will also likely determine whether those areas get broadband service and what the service looks like -– how fast it will be, how symmetrical, and whether it is wireless or wireline.
  • Second, the impact of the FCC's choices could reverberate into other aspects of telecom, specifically wireless backhaul. Efforts to build ubiquitous 4G coverage could be impacted if the new rules send rural telecom providers into a tailspin, because someone has to build and maintain connections to wireless towers in rural areas.
  • USF reform is being paired with intercarrier compensation (ICC), the regulatory formula that determines how telecom service providers compensate each other for completing voice calls. The pairing makes sense because ICC has been another means of funding networks in high-cost areas that have become archaic with the introduction of VoIP, among other things. ICC changes will impact any service provider offering voice services, potentially including VoIP companies and cable players.
  • Some not-so-small companies, such as CenturyLink and even AT&T, would be financially impacted by changes in the USF rules that hurt incumbents. There's a reason the six largest U.S. incumbents have banded together and gotten some support from rural telecom associations for a plan that affords some protection to existing service providers in rural areas.
  • And finally, the entire industry will be affected if a prolonged debate or court battle delays any decision on USF, because regulatory uncertainty slows purchasing on all fronts. The FCC had promised USF reform earlier this year but now has slipped on its plan to finish the process this summer and could be months away. Rep. John Dingell (D-MI) this week urged the agency to finish by October, saying the process has already gone on too long.

Why Faster Broadband? Well... consider the case of Cedar Falls

[Commentary] High-speed broadband has been shown clearly to be an economic driver.

In communities across the country — and the globe — economies with faster broadband thrive. Small towns and counties across the U.S. are making the investment to connect — and compete — with the rest of the world. An example: in 1994, the community of Cedar Falls, Iowa, decided to invest in building a high-speed fiber network. In 2004, they studied how their community had done economically over the previous decade, compared to a neighboring community of similar demographics that had not invested in broadband. Just a few years after the network was in place, real estate values went up and stayed up, tax rolls increased, unemployment went down, dozens of new companies formed, and several companies relocated to the area — without the loss of a single existing business to relocation. New construction, which had traditionally been about half that of the neighboring community, became twice that over the same 10-year period. Broadband raises all ships — students have access to more educational opportunities; workers can garner high-wage, high-growth jobs; businesses have better access to their customers and to an expanded marketplace; access to medical specialists increases exponentially. Expansion of broadband-driven sectors will mitigate the cyclicality of our economy, which is currently driven primarily by construction, tourism and real estate — all recession-prone industries.

[Compton is executive director of the San Juan County Economic Development Council]

The Need For Gender Equality In Television

[Commentary] The fall television season’s a great time for fresh starts — to welcome back favorite television shows and hope they'll continue their momentum, or find great new shows. This autumn’s been heralded as a breakthrough for women on television, particularly women in comedy, following the massive and somewhat unexpected box office success of the female-led ensemble comedy Bridesmaids this summer.

In shows premiering this fall, women are saving to start small businesses on 2 Broke Girls; running hit television shows while their husband stays home with their new baby in Up All Night; solving murders while pushing back against police department sexism in NBC’s remake of the British detective show Prime Suspect; and fleeing the ’60s suburbs to fly around the world in Pan Am. These shows are still in their early days, so it’s too early to tell if these shows will upset old stereotypes of women on television or rely on them to tell the same comforting stories to audiences.

Nielsen: Census Shows Boost in Minority Viewing Households

Using information from the 2010 census, Nielsen estimates that:

  • there are 14,277,840 Hispanic/Latino TV homes, up 4.6% (or over 600,000) homes over the 2010-2011 season,
  • Asian Households are up 9.6% (over 400,000 homes) over 2010-2011 to 13,957,750, and
  • African American households increased by 1.5% to 14,277,840.

Political Ads Target TV, But Not Everyone Is Tuning In

Although the election is more than a year away, it's not keeping political commercials off of our TV screens. Yet, according to a new survey, the audience for those ads is shrinking.

Republican pollster Neil Newhouse of Public Opinion Strategies and Democratic pollster Thomas Eldon of SEA Polling surveyed likely voters about their TV viewing habits. "The No. 1 finding in the survey, which really shocked me, is that 31 percent of voters we talked to said they had not watched live TV in the past week," Newhouse says. Live in this case doesn't mean a live event, like a baseball game — it means watching a TV program when a channel or network airs it. So if about a third of TV viewers only watched recorded programming in the previous week, there's no reason to assume they sat through the commercials. That's what the fast-forward button is for. "You do a little deeper dive in the data, and there's not a gender difference, there's not a partisan difference — Republicans vs. Democrats — not really an educational difference," Newhouse says. "Where there's a real difference is a generation difference. The generation gap is stark and wide." Younger people, says Newhouse, are much less likely to watch TV in real time — or even to watch television on a television. They may find computers or smartphones more convenient.