1. Monthly archive
  2. September 2011

September 2011

Sprint filing raises new challenges to AT&T, T-Mobile merger

Sprint raised new questions about AT&T and T-Mobile’s merger in a filing, saying that the economic model the companies submitted to the agency came too late and in such a piecemeal fashion that it has not given opponents a fair chance to react.

The Federal Communications Commission said July 21 that AT&T indicated that it now relies on new models to support the approval of its merger, and stopped the “shot clock” on its review of the merger. Sprint representatives told FCC officials that the series of later filings about these new models “make it difficult for Sprint and other interested parties to offer timely and meaningful comments.” “The Applicants [AT&T and T-Mobile] should not be allowed to get a ‘second bite at the apple’ (let alone a third or more bites) after failing in the Applications and Opposition to establish that the proposed transaction will promote the public interest,” Sprint said in the document. In response to the filing, Jim Cicconi, AT&T’s senior executive vice president of external and legislative affairs said in a statement that the company’s filings on the model “confirms the compelling evidence previously submitted as to why our merger should be approved.”

(Aug 19)

Groupon responds to Markey, Barton letter questioning privacy changes

In a response to questions from lawmakers over changes to its privacy policy, Groupon said that it has taken pains to ensure that consumers were informed of its policy changes and have control over their own information.

Answering the lawmakers’ questions about why the company removed a portion of its privacy policy dealing with children, Groupon responded that it did so because it does not target children with its products. “Groupon’s Sites and its underlying services are clearly designed for adult customers,” the company wrote, adding that using their services requires a valid credit card.

Groupon also said that while it does not currently collect location data when consumers aren't logged into the site, customers have been asking for this functionality for “push” alerts, and the company is planning to add that feature to its service in the future. The company also said that it knows that privacy is not a one-size-fits-all issue. “We understand that our customers want relevant and timely offers delivered in a privacy-sensitive manner at an exceptional value,” the company wrote. “We also understand that our customers can easily vote with their feet if they feel that we are not striking the right balance in all four areas — relevance, timeliness, respect for privacy and value.”

(Aug 18)

Amazon, Google should be happy after online music locker ruling

A federal court ruling in New York could pave the way for Google and Amazon, should they face lawsuits over their decisions not to obtain licenses from record companies before launching their online music lockers.

Ars Technica reported that a judge ruled that MP3tunes, an online music locker, is eligible for a safe harbor in the digital copyright law that protects a company from copyright liability over illegal music uploaded to its service as long as it removes that material when notified. While the judge in the case ruled in favor of EMI, the report says it was a hollow victory at best. Judge William Pauley wrote in court documents that there is “no genuine dispute” about whether or not MP3tunes should be considered under the safe harbor. Public Knowledge’s Sherwin Siy said in a statement that the court rejected a framework EMI put forth that “would have imperiled remote-storage services and other cloud applications. The court’s rejection of these arguments deflates a lot of the legal uncertainty that record labels have tried to inject into these technological developments.”

(Aug 23)

Welcome back to the Internet, Libya

After 171 days of virtual silence, Libya is back online. T company Renesys is cataloging the country's Internet status, and access went up and down several times over the weekend, causing some confusion about what — exactly — is happening in Tripoli.

According to Renesys, which monitors Web traffic across the globe, the Internet connection in Tripoli was moving in bursts, as local Internet came back up only to be shut down at the national level. Shortly after that, national routes went back up, but local connections were down. Then, the Web site for Libya Telecom and Technology Web site went back online, reportedly reading, “Congratulations, Libya, on emancipation from the rule of the tyrant.”

(Aug 22)

California lawmakers try to head off Amazon sales tax referendum

State lawmakers escalated their war with Amazon with a fresh attack aimed at the Internet giant's refusal to collect taxes on its sales, which a new law requires.

The legislative move would halt Amazon's campaign to put a referendum on the June ballot asking voters to overturn the state's Internet sales tax law, which took effect July 1. In a bit of legislative legerdemain, the state Senate Appropriations Committee took the language of that law, tweaked it and put it into a so-called urgency bill. As an urgency bill, the legislation, should it pass, would nullify the existing law, invalidating Amazon's voter petition, and the new law would be immune from a referendum. Amazon, the world's largest online retailer, apparently was blindsided by the maneuver.

(Aug 26)

Amazon ups the ante in Internet sales tax fight

Amazon is putting its money where its mouth is when it comes to trying to overturn a new California law that requires it and other Internet sellers to collect sales taxes on purchases by customers from the Golden State.

The online retailer reported to the California secretary of state's office that it had contributed $2.25 million to the "More Jobs Not Taxes" campaign to qualify a referendum for the June primary election ballot. The contribution brought Amazon's cumulative investment in the campaign since mid-July to $5.25 million. The referendum, if signed by about 505,000 registered voters as expected, would ask voters if they want to uphold the law, which took effect July 1, or repeal it. Amazon is asking for a repeal, claiming that the California law is an unconstitutional interference with interstate commerce.

(Aug 23)

Give our airwaves some air

[Commentary] Policymakers in Washington agree that more airwaves should be made available for wireless services, but they clash over some important details — for example, how to make the most efficient use of the prime airwaves occupied by TV broadcasters.

There's also a philosophical split over whether to set aside some of these additional airwaves for unlicensed uses, rather than selling them all to the highest bidders. Lawmakers should heed the lessons of history on that front. The experience with Wi-Fi shows that making spectrum available for wireless spurs innovation and broad public benefits, although it's impossible to predict what that innovation will look like or what those benefits will be. The goal of reclaiming spectrum shouldn't be just to amass the largest possible amount of cash for the Treasury. It should be to advance the public interest, including its real but unquantifiable interest in innovation.

Concerns about lack of minorities in NBC's family

Then-diversity chief Paula Madison maintained in a February radio interview with noted sociologist Michael Eric Dyson that Comcast's NBCUniversal was committed to increasing diversity "in all facets of our business.…Those commitments are in writing, and they are on file with the FCC. There is no likelihood that we would revert. We're not going to put shows on the air that are devoid of diversity." But little more than six months after the approval of the merger by the Federal Communications Commission, and three months after Madison retired, some of NBCUniversal's units have come under fire as advocates claim that the company is not honoring promises that helped pave the way for the merger's approval.

(Aug 23)

For Murdoch, media has often been about friends and influence

Though Rupert Murdoch considers himself a political conservative, when it comes to his business dealings he is a pragmatist. He's willing to befriend a liberal democrat who can help his business agenda and he's not afraid to use his media properties as weapons to further his vast -– and politically connected –- empire.

The practices used by Murdoch and his companies are coming under closer scrutiny in the wake of the phone hacking scandal that led to News Corp. closing its British tabloid News of the World. Britain has been rocked by the revelation that News of the World had broken into the voice mails of celebrities, the royal family and crime victims. The debacle has also called into question the cozy relationships the paper and its parent company have with politicians and law enforcement there. A former News of the World editor, Andy Coulson, who was arrested last month as part of the hacking investigation, had gone on to serve as a communications specialist for British Prime Minister David Cameron. Paul Stephenson, the head of Scotland Yard, also resigned as a result of the ethics scandal. Scotland Yard is also under fire for its role in the News of the World mess. It has been accused of not conducting a thorough investigation into the hacking allegations when they first surfaced to protect its relationship with News Corp. media outlets. (Aug 24)

AT&T to offer only unlimited texting plans

AT&T is scrapping its $10-per-month 1,000-text-message plan, leaving only unlimited texting plans as of August 21. That leaves only two texting-plan options for new customers -- a $20-per-month unlimited text message plan or AT&T's family plan of $30-per-month for unlimited texting across up to five phone lines, said Mark Siegel, a spokesman for the carrier.

AT&T subscribers however don't need to have a formal text message plan, though if they don't have a plan and text anyway, the costs could add up quickly. AT&T charges 20 cents per text message and 30 cents per multimedia text message (any text message that also includes a photo or video), Siegel said.

(Aug 18)

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