March 2012

To Keep Customers, Brick-And-Mortar Stores Look To Smartphones

Consumers using smartphones and tablets are changing the way stores market, set prices and track customer tastes — leaving mobile technologies poised to roil the $4 trillion U.S. retail industry.

Why Your Inbox May Seem a Little Less Crowded These Days

Return Path, one of the world’s biggest email certification companies, says the number of emails getting through to inboxes worldwide dropped considerably in the second half of 2011.

The decline in “deliverability rates”, from 81% to 76.5%, was the first such dip since Return Path began keeping track in 2004. Put another way, roughly 1 in 4 emails did not get through to you, me or anyone else from July through December 0f 2011. Where does the missing email go? After reviewing data from more than 1.1 million messages, 142 ISPs and 34 countries, Return Path estimates that 8.4% of the MIA mail was sent directly to spam folders, while almost twice that number (15.1%) was blocked by filters at the ISP level. All told, that’s a 20% increase in the number of AWOL messages across the globe. In North America, the deliverability rate was slightly higher, at 79%, but still down dramatically from the first half of the year.

NTIA Issues Report Setting Path to Make Prime Spectrum Available

The Department of Commerce, through the National Telecommunications and Information Administration (NTIA), announced its finding that 95 megahertz (MHz) of prime spectrum could be repurposed for wireless broadband use. Reallocation of this spectrum would represent significant progress towards achieving President Obama’s goal to nearly double the amount of commercial spectrum available this decade. The President’s initiative will spur investment, economic growth, and job creation while supporting the growing demand by consumers and businesses for wireless broadband services. NTIA, working with federal agencies, evaluated the potential of the 1755–1850 MHz band to accommodate commercial wireless broadband service. This spectrum band is of great interest to the wireless industry. However, over 20 federal agencies currently hold more than 3,100 individual frequency assignments in this band to perform a host of mission-critical functions, including law enforcement surveillance, military tactical communications, air combat training, and precision-guided munitions. While NTIA’s analysis shows it is possible to repurpose all 95 MHz of spectrum for commercial wireless broadband, there are several challenges that need to be met before making a formal recommendation to the Federal Communications Commission (FCC).

NTIA proposes a new path forward for spectrum repurposing that relies on a combination of relocating federal users and sharing spectrum between federal agencies and commercial users. Spectrum sharing will be a vital component to satisfying the growing demand for spectrum, and federal and non-federal users will need to adopt innovative spectrum-sharing techniques to accommodate this demand. NTIA proposes convening discussions between industry and the relevant federal agencies under the auspices of the Commerce Spectrum Management Advisory Committee, with the goal of finding ways to work together through sharing or other means to reduce the time and expense of repurposing the 1755-1850 MHz band, while maintaining essential Federal capabilities and maximizing commercial utilization.

Wireless industry wants airwaves auctioned, not shared

The National Telecommunications & Information Administration's report that it has found 95 MHz of spectrum to free up for wireless broadband drew plenty of response from industry and Washington policymakers.

A top lobbyist for the wireless industry said that the federal government should auction, rather than share, as much spectrum as possible. "We understand that sharing is inevitable, but the balance really needs to lean more towards clearing rather than sharing," said Chris Guttman-McCabe, vice president of regulatory affairs for CTIA - The Wireless Association. Guttman-McCabe argued that the cost of clearing some federal devices from the spectrum would "pale in comparison" to the economic boost and auction revenue of selling the spectrum to wireless companies.

But Harold Feld, legal director for consumer group Public Knowledge, praised the National Telecommunications and Information Administration (NTIA) for emphasizing spectrum-sharing. "The report's recommendation to rely on policies such as spectrum sharing and enhanced efficiency for Federal spectrum users and the accompanying technical innovations marks the first step toward a sustainable wireless future. We hope this approach will be used in the future as more Federal spectrum is identified as a resource to be shared with the public," Feld said.

"Given the exponential increase in consumer demand for spectrum, it's time to focus on the 1755-1780 MHz band. This is a real and unique opportunity to free up 25 MHz of high-value spectrum in the near future," said Federal Communications Commission Chairman Julius Genachowski. He focused on the 25 MHZ in the lower portion of that 95 MHz because the spectrum could potentially be freed up quickly, especially if it were not tied to the rest of the spectrum, and would naturally pair with 25 MHZ of advanced wireless spectrum the FCC has in inventory in an adjacent band.

"The NTIA's report indicates that the federal government is aggressively addressing the need to make more spectrum available for wireless mobile services," said Verizon executive VP Tom Tauke. "This is good news for consumers. While the report appropriately indicates that there will be hurdles and limitations in repurposing the 1755-1850 MHz band for commercial use, its focus on achieving that objective is very encouraging," said Tauke. "The key to continued innovation and growth in the wireless industry is the government's commitment to ensuring that sufficient spectrum is available to meet the expanding needs of consumers. Verizon looks forward to working with the NTIA and the other federal agencies to make the maximum amount of spectrum available for mobile use as soon as possible."

"Today, the NTIA released its report on clearing the path to reallocate 95 MHz of federal spectrum for commercial use," said AT&T VP Joan Marsh. "This is an important step by the Administration. AT&T commends NTIA and Assistant Secretary Larry Strickling for moving aggressively and creatively toward the reallocation of a significant amount of spectrum vitally needed by the wireless industry. We look forward to reviewing NTIA's report in detail, and to working cooperatively with both NTIA and the impacted government agencies to address reallocation challenges in a manner that will ensure that the identified spectrum bands are made available expeditiously, while protecting vital government services that cannot be easily relocated."

"We welcome NTIA's fresh, new approach and its commitment to making shared use of this spectrum a reality," said Free Press Policy Director Matt Wood. "There is a growing consensus that clearing this spectrum entirely and then auctioning it off to incumbent wireless carriers would be a complex and expensive task, and we are glad to see lawmakers, wireless industry players, technology companies and consumer advocates all coming together to make quicker, smarter and better use of this band by sharing it."

NTIA Spectrum Plan Could Force Second ENG Exodus

The National Telecommunications & Information Administration has said its just-released report finding that 95 MHz more federal spectrum could be freed up for wireless broadband faces some challenges. One of those is that it will have to move some federal agencies to other spectrum, and one proposal by the Department of Defense would mean broadcast and cable electronic news gatherers (ENG) using the Broadcast Auxiliary Service band would be forced to make a second exodus over the next 5-10 years.

ENG spectrum was reclaimed and users repacked/moved from the 2 GHZ band to a new home between 2025 and 2110 as part of the DTV transition and to make room for wireless broadband. Now, what the National Association of Broadcasters has called a second, even more complicated, transition of spectrum reclamation and re-auction for wireless broadband by the FCC and NTIA might mean a second move of those ENG users. In order to free up spectrum in the 1755-1850 MHZ band, DOD says it will need to move to the 2025-2110 band, where electronic newsgathering equipment -- all those trucks and dishes sending live news back to stations and networks -- currently operate, as well as for studio/transmitter links.

Backlog Update Reveals Over 10,000 Items Still Pending at FCC

This week, the House will vote on the Federal Communications Commission Process Reform Act, H.R. 3309, which will bring greater transparency and predictability to the FCC’s operations. Communications and Technology Subcommittee Chairman Greg Walden (R-OR) and Oversight and Investigations Subcommittee Chairman Cliff Stearns (R-FL) underscored the need for these reforms, highlighting the number of items still awaiting a decision by the FCC. Last year, the committee released an initial report on the Workload of the FCC, which outlined the number of pending items at the Commission based on July data.

“Last November’s staff report confirmed that [FCC] Chairman [Julius] Genachowski has made good progress on FCC process, but there is much work left to be done,” said Chairman Walden. “The Commission’s recent response has shown continued improvements in many areas at the Commission, but significant backlogs still remain, with 4,984 petitions, 3,950 applications, and more than 1,083 consumer complaints still pending at the Commission. These workload issues highlight the need for good process, and that’s why it’s important we move forward with process reform legislation now, so that the agency locks in the gains it has already made and so that the public will see it continue to improve into the future.”

Reforming FCC to unleash innovation

[Commentary] “If it ain’t broke, don’t break it.” That’s how the late Jim Quello, a commissioner at the Federal Communications Commission, described his approach to regulation. It’s a view the FCC would be well-served to follow today.

Despite a lackluster economy, landline, wireless and cable providers invested $66 billion in broadband infrastructure in 2010, $3 billion more than in 2009 — totaling more than a half-trillion dollars over the past 8 years. The U.S. is leading in cutting-edge wireless technologies. The result is innovation that was unthinkable a decade ago. Before the FCC interferes in that marketplace with regulation, it should find compelling evidence that something is broken and that its remedy will likely improve the situation. Much work remains before the FCC can fully meet the expectations of the American people. A former White House adviser, Philip Weiser, has said that the agency “is in dire need of institutional reform.” While one chairman may make the FCC’s process better, another may let it slip again. Taxpayers and the communications sector deserve what only Congress can give them — reforms that will last from one commission to the next, regardless of which party controls the legislature or the FCC.

Why you can't sue your wireless carrier in a class action

Matt Spaccarelli sued AT&T because, as he argued, AT&T had stopped offering him an unlimited data service. Instead, he said the company was slowing down his service when he used 1.5 GB to 2GB of data in a given month. Spaccarelli's service was "throttled" as a result of a new AT&T policy designed to curb heavy data usage by its unlimited subscribers. But thanks to a Supreme Court decision in 2011, which upheld a company's right to include a clause in contracts prohibiting subscribers from suing the company as part of a class action, Spaccarelli had only two options when fighting AT&T's new policy: He could enter into an AT&T-funded arbitration program or file his suit in small claims court. Spaccarelli opted for small claims court. What this meant for AT&T was that instead of facing a multimillion dollar lawsuit, which represented thousands of disgruntled subscribers, the company only had to deal with a single subscriber and damages of $850. Even though AT&T lost its case and paid Spaccarelli the court-awarded damages, the company was not forced to change its throttling policy. And in fact, it still slows down service on what it considers its heaviest data customers, even though AT&T still calls the plan "unlimited."

Reps Bono Mack, Blackburn Introduce Industry-Friendly Cyber Bill

Reps. Mary Bono Mack (R-CA) and Marsha Blackburn (R-TN) introduced industry-friendly cybersecurity legislation that mirrors a bill championed by Republicans in the Senate.

The proposals are a response to White House-backed cybersecurity legislation that Republicans say relies too heavily on government regulation. The bill would help companies and the government share information with each other; provides liability protection for companies that seek to secure their networks; and increase criminal penalties for cybercrime.

Sen McCain: Don't give Homeland Security lead in defending against cyberattacks

The Homeland Security Department should not have a lead role in defending the nation against cyberattacks, Sen. John McCain (R-AZ) argued. He referenced the problems of the Transportation Security Administration in making his argument. "Anyone who has been through an airport has no confidence in the technological capabilities of the Department of Homeland Security," Sen McCain said during a Senate Armed Services hearing. He argued that the National Security Agency (NSA) and U.S. Cyber Command have the expertise to handle cybersecurity.