July 2012

A Reality Series Intrudes on Silicon Valley, and Finds It Cringing

Silicon Valley is finally getting the treatment once reserved for rowdy housewives and excitable chefs: its own Bravo reality series.

But the tech world is not quite ready for its close-up. When details about the show, tentatively titled “Silicon Valley,” first seeped out, many here were offended, saying it would trivialize the difficult and important work being done in the valley. The valley may be even more upset when it sees how well the final product captures the raucous reality of the tech industry in 2012. The series, which is now being filmed and is scheduled to be broadcast this winter, shows hard-partying youngsters vying to start companies in a frenzy reminiscent of the dot-com peak of 2000. It is a world where everyone seems to think that a good idea can lead to instant success and untold riches, because, after all, it has so many times before. It is a place where you feel like a failure if only one investor offers to finance you, instead of many begging to get in.

Eric Schmidt: The Great Firewall of China will fall

Technology and information penetration in China will eventually force the Great Firewall of China to crumble and even lead to the political opening of the Chinese system, according to Google Chairman Eric Schmidt.

Schmidt, who stepped down as Google's CEO last year, remains the head of Google's board and its chief spokesman. He roams the planet speaking to audiences and exploring countries where Google could expand its operations. He has been called Google's "Ambassador to the World," a moniker he doesn't promote but doesn't dispute. He sat down for a long interview with The Cable on the sidelines of the 2012 Aspen Ideas Festival last week. "I believe that ultimately censorship fails," said Schmidt, when asked about whether the Chinese government's censorship of the Internet can be sustained. "China's the only government that's engaged in active, dynamic censorship. They're not shy about it." When the Chinese Internet censorship regime fails, the penetration of information throughout China will also cause political and social liberalization that will fundamentally change the nature of the Chinese government's relationship to its citizenry, Schmidt believes. "I personally believe that you cannot build a modern knowledge society with that kind of behavior, that is my opinion," he said. "I think most people at Google would agree with that. The natural next question is when [will China change], and no one knows the answer to that question. [But] in a long enough time period, do I think that this kind of regime approach will end? I think absolutely." The push for information freedom in China goes hand in hand with the push for economic modernization, according to Schmidt, and government-sponsored censorship hampers both.

US Bid For Megaupload Founder Dotcom’s Extradition Is Delayed

Kim Dotcom, the Megaupload.com website founder accused of orchestrating the biggest copyright infringement conspiracy in U.S. history, had his extradition hearing in New Zealand delayed until next year.

The hearing, previously scheduled for next month in Auckland, was tentatively rescheduled for March 25, according to a summary of a July 6 teleconference published by District Court Judge David Harvey. Prosecutors and Dotcom’s lawyers agreed to the delay to allow for an appeal of a court ruling that warrants used by New Zealand police to search Dotcom’s home in January weren’t valid. Dotcom’s lawyers are also pressing for disclosure of the evidence the U.S. has against him and a decision on that request, which is pending, will probably be appealed as well, Harvey wrote.

On North Korean TV, a Dash of (Unapproved) Disney Magic

North Korean state-run television showed footage of costumed versions of Tigger, Minnie Mouse and other Disney characters prancing in front of the leader, Kim Jong-un, and an entourage of clapping generals. The footage also showed Kim in a black Mao suit watching as Mickey Mouse conducted a group of young women playing violins in skimpy black dresses. At times, scenes from the animated Disney movies “Dumbo” and “Snow White and the Seven Dwarfs” were projected on a multipanel screen behind the entertainers; an article in the state-run press said unnamed foreign songs were on the bill. The appearance of the characters from the United States, North Korea’s mortal enemy, was remarkable fare on tightly controlled North Korean television, which usually shows more somber and overtly political programs. A Disney spokeswoman, Zenia Mucha, had no comment beyond a statement: “This was not licensed or authorized by the Walt Disney Company.”

Verizon's cable deals make headway but regulatory doubts linger

Sources say the Federal Communications Commission is prepared to approve Verizon’s purchase of spectrum from cable companies. But Verizon is in much tougher talks with the Justice Department in hopes of winning agreement for two other much-criticized portions of the deal.

The Justice Department is skeptical about the marketing deals since they would mean collaboration between Verizon, the largest wireless company, and Comcast, the biggest cable company, according to one of the sources. The fear is that there will be less head-to-head competition which could mean higher Internet and wireless plan prices. The hope had been that Verizon would use its FiOS service to more aggressively push into Internet and cable, and that Comcast and other companies would compete more heavily in wireless products. The other concerning component, the source said, is the creation of a "joint operating entity" between Verizon and the cable companies. It is designed to develop new technologies, such as one that would allow consumers to move seamlessly between wired and wireless hookups, but critics say it could create cutting-edge technologies only available to the consortium. "The Justice Department has big concerns about what mischief could be done in undefined agreements that would lock out competitors," said the source. Talks are underway between the department and the parties, with no decision expected until August at the earliest. The Justice Department is weighing three options - it could sue to stop the side arrangements to the spectrum buys, it could seek to change them to prevent potential collusion, or it could monitor how the cross-marketing agreements that have already been put in place play out. Neither agency will sign off on the transactions until both are satisfied that any problems have been resolved.

AT&T investors angry over $4 billion breakup fee

Should I sell my AT&T stock since the company had to pay a $4 billion breakup fee after the failed acquisition of cellular competitor, T-Mobile?

Nothing burns frugal consumers up more than the realization they've wasted money. And it's that same feeling of regret that plagues some investors when they find out a company they own has squandered cash. And that's exactly the feeling some AT&T investors are harboring toward the telecom company. When AT&T's bid for rival T-Mobile was snuffed out in 2011 on antitrust concerns, AT&T not only lost its prize but suffered a big hit financially. As part of the deal, AT&T had to pay a $4 billion breakup fee, a huge penalty for making a bid that didn't happen. It's one of the biggest breakup fees ever paid. There's no question the penalty is a huge hit. The company had a pile of $2.4 billion in cash plus $5.2 billion in long-term investments at the end of the first quarter of 2012. The $4 billion breakup fee is certainly a big black eye for the company, making the loss of the T-Mobile deal even more painful. Should this big hit, though, be enough to convince you to sell the stock? That mistake in itself isn't enough to warrant a sell, but it should get you to start questioning the company's performance so far.

Cyber Command chief urges action on information-sharing legislation

The head of U.S. Cyber Command argued that cybersecurity legislation focused on improving information-sharing about cyber threats between the private and public sectors would not encourage the government to read through Americans’ personal emails. Gen. Keith Alexander tackled claims made by privacy and civil liberties groups in recent months that information-sharing measures pending in Congress would widen the flow of people’s personal emails to the government. The four-star general argued that this legislation is needed to ensure critical infrastructure operators have the ability to share information about incoming cyber threats and attacks with the government “at network speed” and get the help needed to thwart potential damage. “When we talk about information-sharing, we’re not talking about taking our personal emails and getting those to the government,” said Alexander, who also serves as the director of the National Security Agency (NSA).

Swing State TV Stations Spiking Ad Rates As Campaign Cash Pours In

Someone once said that owning a TV station is a license to print money. Now, that was before the advent of cable TV and computer screens and streaming video. But these are clearly good times for some stations, especially the ones in presidential battleground states. While the November election is still four months away, President Obama, Republican Mitt Romney and outside groups are advertising in record amounts. "If you are a television station in a media market in one of those handful of [swing] states, there's an incredible amount of demand for your inventory from political buyers," says Ken Goldstein of Kantar Media CMAG, which tracks political ad spending.

Father Of The Cellphone 'Unleashed' World's Callers From Copper Wires

The Motorola DynaTAC made its debut on the streets of New York in 1973, when Martin Cooper made the world's first public cellphone call and forever changed the way we stay in touch with each other. Cooper says it all began with a dream he and his colleagues at Motorola shared. "That dream was that everyone someday would be free to talk wherever they were [and] would be unleashed from the copper wires that tied them to the network," says Cooper, who still develops new technologies in San Diego. As part of a new tech segment on All Things Considered, Cooper shared some memories from his moment of innovation.

Thirteenth Quarterly Status Report to Congress Regarding BTOP

The National Telecommunications and Information Administration has sent Congress the latest Quarterly Report on the status of the Broadband Technology Opportunities Program (BTOP or Program) focusing on the Program’s activities from January 1 to March 31, 2012. From January to March 2012, BTOP grant recipients continued to demonstrate strong performance across the Program’s FY12 goals.

These positive results have helped the Program deliver significant progress in areas such as new fiber-optic infrastructure construction, the opening of new PCCs, and thousands of new broadband subscribers now experiencing the benefits of high-speed Internet service. Recipients’ quarterly progress reports, which were made public at the beginning of June 2012, provide a more granular depiction of these results. The Program made considerable progress in network miles during the last quarter. NTIA has exceeded its FY12 goal to deploy 50,000 new or upgraded network miles across the country. Recipients deployed more than 12,000 network miles during the past quarter, bringing the total number of miles to more than 57,000. Through March 31, 2012, grantees were deploying facilities in 48 states and territories. Last quarter, BTOP recipients connected and/or improved service to nearly 2,000 anchor institutions within their project areas, bringing the total number of institutions to 8,300 across 40 states. The total number of anchors connected with BTOP funds increased by more than 30 percent from the previous quarter.

With the activity this quarter, NTIA reached 83 percent of its FY12 goal to connect 10,000 institutions. As BTOP recipients deploy additional new network miles, they will continue to provide more institutions with faster and more reliable Internet access. Through March 2012, 62 BTOP recipients installed more than 33,000 new workstations in Public Computer Centers across 39 states. PCC recipients continued to make considerable progress last quarter, reaching nearly 97 percent of the total program goal to install 35,000 new or upgraded public workstations. Those recipients that have installed workstations also continue to develop and implement training programs and educational courses, including much-needed job training. During the quarter, public computer centers provided 1.4 million hours of training to 336,000 users. Through March 2012, 36 BTOP recipients reported that their training and adoption projects led over 326,000 households and 7,400 businesses to subscribe to broadband services. New subscribers for the past quarter totaled more than 63,000, meaning that more people are now using the Internet to search and apply for jobs, advance their educational goals, and find health-related information. Over 80 percent of SBA grant recipients reported new broadband subscribers. NTIA expects the number of new subscribers to continue to increase as more households complete training programs, receive subsidized computer equipment or broadband service, and take advantage of workstations and discounted subscriptions provided by BTOP funds. NTIA reached nearly 95 percent of its FY12 goal, attaining more than 330,000 of the 350,000 planned new broadband subscribers.

Benton

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