September 2011

Consumer Watchdog Channeling Marcel Marceau

Consumer Watchdog plans to deploy a group of mimes wearing white track suits emblazoned with Google's "Don't Be Evil" motto Sept 21, just as Google Chairman Eric Schmidt is set to testify before the Senate Judiciary Committee. The mimes will mercilessly track senators and their staffers as they move through the Dirksen Senate office building. Consumer Watchdog aims to highlight concerns over how Google collects information about Internet users.

FCC Proposes IP Video Captioning Regime

The Federal Communications Commission has proposed requiring programmers to provide closed captioning for Internet and other IP-delivered video and requiring distributors to make sure it gets through to their viewers.

The Twenty-First Century Communications and Video Accessibility Act of 2010, which passed a year ago next week, required the FCC to come up with rules requiring any online video that is closed captioned on TV to be closed captioned online and look into requiring captioning of web-originated video. The FCC says it only plans to require captioning of full-length programming, not outtakes or clips. Congress gave the FCC until Jan. 12, 2011 to come up with the new rules. In a notice of proposed rulemaking Monday, the FCC proposed the captioning and pass-through obligations, as well as requiring that the quality of IP captioning be at least as good as that on TV, which would include being able to change format and size. That could be crucial given the size of some of the small screens IP video is accessed from.

Bipartisan group of House lawmakers urge revamp of Postal Service business model

A bipartisan group of 75 House members are calling on the US Postal Service to revamp its business model instead of closing post offices.

In a letter sent to Postal Regulatory Commission (PRC) Chairwoman Ruth Goldway, Rep. Gerry Connolly (D-VA) Don Young (R-Alaska), joined 73 other lawmakers in urging Congress to remove restrictions such as 100 percent retirement prefunding requirements and freeing up the agency to sell other items that aren't mail-related, such as hunting licenses. “We have been presented with a false choice of closing post offices and slashing the workforce or letting the Postal Service go bankrupt,” Connolly said. “There are better alternatives. The Postal Service’s unparalleled retail network is a competitive advantage, but that advantage can't be leveraged because of the 2006 law that prohibits the Postal Service from even selling many postal-related products. We need to change that law.” The Postal Service has proposed closing more than 3,600 offices nationwide.

News Corp. Said to Get Letter From U.S. in Probe

Apparently, News Corp. was sent a letter by U.S. prosecutors investigating foreign bribery, requesting information on alleged payments employees made to U.K. police for tips.

The letter is part of an effort by the U.S. Justice Department to determine whether News Corp. violated the Foreign Corrupt Practices Act. The inquiry advances an existing U.S. probe that is reviewing claims that victims of the Sept. 11, 2001, attacks had their phones hacked by News Corp. employees. The letter doesn't carry the same legal force as a grand jury subpoena, which would compel a response under law.

The Foreign Corrupt Practices Act, enacted in 1977, makes it a crime for U.S. businesses or their employees to pay off representatives of a foreign government in an attempt to gain a commercial advantage. Federal prosecutors have broad discretion to interpret the law and its definition of who qualifies as a government official.

Ted Turner: Murdoch ‘Going to Have to Step Down’

Billionaire Ted Turner said News Corp. Chairman and Chief Executive Officer Rupert Murdoch will probably have to leave the helm of his media company after a phone-hacking scandal that began at one of its newspapers.

“I think he’s going to have to step down,” Turner said. “He hadn't survived anything like this. This is serious.” Murdoch’s statements that he didn't know about phone-hacking or police payments aren't sufficient, Turner said. “Well, he should have known,” said Turner, who sold his Atlanta-based Turner Broadcasting, owner of CNN, TBS and the Cartoon Network, to Time Warner in 1996. “He was chairman of the board. He’s responsible. I took responsibility when I ran my company. You never heard me say, ‘Well, I didn't know.’”

Increased competition means lower wireless rates in Canada

The price of monthly wireless bills is coming down in Canada as a surge of new competitors offer rate plans that are challenging established telecom providers. A new report by Convergence Consulting Group Ltd. shows just how much pressure new entrant wireless companies are putting on the margins and metrics, such as the average revenue per user, at Rogers, BCE Inc. and Telus Corp.

New entrant providers are offering combined voice and data plans that are 58 per cent cheaper than the incumbents, and their wholly-owned discount brands. For data plans, new entrant providers are charging as much as 83 per cent less. “The new entrants haven't disappointed – they've come out with a big price undercut,” said Brahm Eiley of Toronto-based Convergence. That has contributed to a 1.4-per-cent drop in average revenue per user for the Big Three in 2011, Convergence said, powered by an 11-per-cent falloff in voice revenues and despite data revenue growth of 28 per cent per user. As plans and prices get more competitive, big wireless companies have been offering existing consumers better value-for-dollar – this is especially the case in Quebec.

Ten States Where The Internet Is Too Slow

In much of the country, access to affordable, high-speed Internet is taken for granted. However, in vast sections of the United States broadband Internet is either unavailable or too expensive for low-income families.

The Federal Communications Commission, the Small Business Committee, and the U.S. Department of Agriculture have all urged service providers to expand to rural areas. But the companies contend that it would cost far more to run lines or install wireless towers in these remote areas than the profits that could be made from the few low-income families that live there. Most of the areas with slow or nonexistent Internet access are indeed in remote regions with tiny populations. On the West Coast and in the Northeast, where the average population can by anywhere from 200 to 1,200 people per square mile, providing service makes sense for companies. In areas like Wyoming, Montana and Alaska, the average can be fewer than 10 people per square mile. In addition to a lack of concentrated paying customers and rocky and mountainous terrain, which often goes hand-in-hand with sparse population, complicates the cost of developing broadband networks in these locations. Here's the bottom ten: Missouri, Alaska, Nebraska, Arkansas, Iowa, Oklahoma, New Mexico, Montana, Wyoming, Idaho.

Will Super Wi-Fi Live Up To Its Name?

It's likely that a few years from now, Americans' laptops, smart phones, and other wireless devices will be able to get online using "Super Wi-Fi," a new standard that will increase capacity in places where regular Wi-Fi networks have become overcrowded. The bad news: most people won't be able to use those airwaves to make long-range connections, which was supposed to be the major technological advance that would put the "super" in Super Wi-Fi.

iPads for every high school student in Michigan district

Zeeland (MI) Public Schools have replaced textbooks with iPads -- one for every high-schooler in the district. That's 1,800 iPads between two high schools in the district. But that's just beginning. The district embarked on an ambitious project this fall that will give a tablet to every student in grades 3 to 12 — the only district this state to do so. The program represents one of the most aggressive in the country. The school uses the iPad for assigning classwork, testing and communicating with students. Some teachers have gone paperless. Just two weeks into the experiment, administrators already are calling the iPad program a game-changer.

AT&T Launches Ad Blitz in DC to Push T-Mobile Deal

As AT&T Inc. works to convince regulators and lawmakers on the merits of its proposed takeover of T-Mobile USA, the telecom giant said it is launching an advertising blitz in Washington focused on its original selling point for the deal: better wireless service.

“In case you’re wondering why Sprint is trying to kill the AT&T/T-Mobile merger… It’s all about spectrum,” reads the text of the AT&T ad slated to run starting Sept 20 in publications popular on Capitol Hill, such as the Washington Post, Politico and the Hill newspapers. AT&T declined to disclose how much it is spending on the ads. “We have a plan to combine our limited spectrum with T-Mobile to create a 4G LTE mobile broadband network that will reach 97% of Americans,” AT&T says in its ad. AT&T’s new campaign also attacks Sprint by name, continuing a months-long war of words between the rivals. AT&T’s ads say Sprint and Clearwire Corp., the wireless-Internet company partially owned by Sprint, together “control over one-third of the mobile wireless spectrum held by U.S. wireless carriers — far more than any other provider. You can't blame them for wanting to keep it that way,” the ads say.