September 2012

Republicans shuffle advertising priorities

The number of battleground states in the US election is shrinking, with Mitt Romney and outside groups backing the Republican presidential candidate shunning large investments in Michigan and Pennsylvania, which they had once hoped to win, in favor of other states where they are more competitive.

The decision to not invest heavily in ads in those states could enable the Republicans to devote more resources to must-win Ohio and Florida, intensifying the battle over the states that will probably determine the outcome of November’s poll. Crossroads GPS, a conservative political group that supports Romney, said it was not running ads in Pennsylvania and in Michigan, where Romney was born but where his stance on the auto industry bailout has been unpopular. The President carried both states in 2008 and they still favor him now. According to the Real Clear Politics average of polls, President Obama is leading Romney in Pennsylvania and Michigan by 7.7 percentage points and 2.4 points respectively. The Romney campaign had hoped to make inroads in both states. But campaign officials now say they are turning their focus to New Hampshire and Wisconsin, Ryan’s home state.

Bill Clinton Draws More Viewers Than N.F.L. Opener

More people watched former President Bill Clinton’s speech to the Democratic National Convention on Wednesday night than tuned in to see the N.F.L. season opener. But the game appeared to cut into the convention’s ratings, which were lower than Tuesday night’s. According to preliminary ratings from Nielsen, 20.6 million watched the convention from 10 p.m. to 11 p.m., while 20.1 million people watched the New York Giants-Dallas Cowboys game during the same hour. Both events had fewer viewers in that hour than Michelle Obama’s speech on Tuesday, the first night of the convention. About 26.2 million people tuned in to hear the first lady, Nielsen reported.

Alexis Ohanian, Reddit co-founder and Web advocate

Reddit founder Alexis Ohanian has accomplished what virtually no one else in Washington is doing these days: bringing the political parties together on a controversial issue.

Democrats and Republicans have stepped up their support this year of Ohanian’s cause of keeping the Web free of government intervention. During their conventions, both sides touted a platform plank affirming Internet freedom. And last week, President Obama stopped by Reddit for a surprise question-and-answer session, saying he would “fight hard to make sure the Internet remains the open forum for everybody.” “Republicans want to keep the open Internet safe from big government. Democrats want to keep it safe from big corporations. I say we agree to agree and move ahead,” Ohanian said in an interview. “It was so successful because we literally had the Tea Party next to the MoveOn.org guys at these meetings. They don’t often hang out together.”

White House circulating draft of executive order on cybersecurity

The White House is circulating a draft of an executive order aimed at protecting the country from cyberattacks. The draft proposal, which has been sent to relevant federal agencies for feedback, is a clear sign that the Administration is resolved to take action on cybersecurity even as Congress remains gridlocked on legislation that would address the threat.

The draft executive order would establish a voluntary program where companies operating critical infrastructure would elect to meet cybersecurity best practices and standards crafted, in part, by the government, according to two people familiar with the document. The draft has undergone multiple revisions and is brief, spanning no more than five pages. It is still being worked on and is subject to change, the people familiar with the draft stressed. It's also unclear whether the final product will get the president's approval to move forward. A new draft of the executive order is expected to be shared with agencies next week.

FCC moves to auction airwaves by 2014

The Federal Communications Commission is moving aggressively to auction television stations' airwave licenses to cellular service providers by 2014.

According to FCC officials, Chairman Julius Genachowski will circulate an order on September 7 with the other commissioners that will outline how the agency could craft the multibillion dollar auctions and will seek feedback from companies and the public. Congress authorized the auctions as part of tax cut extension legislation earlier this year but left the details of the implementation to the FCC. The commission's proposed timeline is similar to the one sought by the wireless industry, which called for the auctions to be held by mid-2014. The FCC will vote on moving ahead with the proposal at its meeting later this month.

House Communications Subcommittee Schedules Government Spectrum Hearing

The House Commerce Committee's Communications Subcommittee will hold a hearing Sept. 13, "Creating Opportunities through Improved Government Spectrum Efficiency," on freeing up government spectrum.

The Obama Administration is in the process of encouraging government agencies to find spectrum to either relinquish or share as part of its goal to get wireless broadband to 98% of the population within five years. "The subcommittee will continue to examine how both federal agencies and commercial wireless carriers might benefit from more efficient government use of spectrum," said Subcommittee Chairman Greg Walden (R-OR). "As the single largest spectrum user, the federal government could save taxpayers money and make more frequencies available to meet American consumers' growing demand for mobile broadband services, while improving its own capabilities."

House Panel to Question Chinese Telecom Firms

The House Intelligence Committee plans to question Huawei Technologies and ZTE Corp. during a rare public hearing next week about national-security concerns posed by the Chinese telecommunications companies' inroads into the U.S. market.

However, Huawei's U.S. spokesman, Bill Plummer, said the company will participate only if it can agree with the Committee on "appropriate arrangements" for Thursday's hearing, declining to give details on what it would consider appropriate. ZTE, meanwhile, said it is cooperating and plans to send Senior Vice President Zhu Jinyun to testify. The wrangling over the hearing arrangements underscored the sensitivity of the committee's nearly year-old probe into the companies. The investigation is looking into their ties to the Chinese government and the extent to which they could provide an avenue for foreign spying in the U.S. It is a response to growing fears that Beijing could gain access to Huawei or ZTE telecom equipment and track phone calls or emails, or disrupt or destroy a communications system.

FBI vs. Google: The Legal Fight to Unlock Phones

A legal battle is brewing between technology companies and the US government over whether law-enforcement agents have the right to obtain passwords to crack into smartphones of suspects. Google earlier this year refused to unlock an alleged pimp's cellphone powered by its Android software -- even after the Federal Bureau of Investigation obtained a search warrant. Google's unusual and controversial challenge to the search warrant indicates how murky the legal standards are for new technologies such as smartphones. Under the Supreme Court's so-called Third Party Doctrine, government agents can often obtain data stored with third parties without obtaining a search warrant. But that standard doesn't take into account data as sensitive as a password—which can be the key to unlocking a larger trove of information such as emails, texts, calls and address lists.

Asking a third party for a password "is awfully new and aggressive," said Paul Ohm, associate professor at the University of Colorado Law School and former federal prosecutor. "Generally, we don't like the FBI to have access to our keys even with a warrant."

Apple Wants to Build Its Own Pandora. Why?

Apple is talking to the music labels about a streaming music service along the lines of Pandora. And unlike Apple’s long-running but unsuccessful negotiations with the TV Industrial Complex, this one is easy to imagine getting off the ground. The bigger question is why Apple would want to launch a streaming music service — particularly an ad-supported one. That’s because ad supported streaming music is a pretty lousy business. It costs a lot of money, and there doesn’t seem to be a whole lot of upside in it. Pandora, the market leader, struggles to make a profit, and it’s been at it for years.

Apple executives might have two ideas, which aren’t mutually exclusive:

  • We can do a much better job at selling ads than Pandora – we have iAd!
  • Even if we can’t make money, it’s worth having our own streaming service.

Fox to Offer Digital Movies Closer to Theatrical Release

Fox is about to pry open the window for digital film sales. Beginning later this month with Ridley Scott’s science fiction thriller “Prometheus,” the studio plans to offer high-definition versions of its films for sale at newly lowered prices about three weeks before making the movies available on discs and through video-on-demand services, studio executives said in interviews.

The new system is an aggressive bid to revive consumers’ interest in the purchase of movies, by giving them an earlier shot at films for about $15 each, down from a purchase price that is currently about $20. That will nibble into what has been a waiting period of roughly four months in which pictures play exclusively in theaters before their release in home entertainment formats. But the system is less provocative than a failed experiment last year.