October 2012

Sec Napolitano: Administration will act on cybersecurity if Congress fails to pass bill

Homeland Security Secretary Janet Napolitano said the executive branch stands ready to issue an executive order on cybersecurity if Congress fails to pass legislation that boosts the defenses of critical infrastructure against a cyberattack.

Sec Napolitano noted that Senate Majority Leader Harry Reid (D-NV) plans to revive efforts to pass cybersecurity legislation in November and said the administration will be keeping a close eye on whether Congress can make any progress. "We'll have to wait and see when the Congress comes back. They've got a long list of things that need to be dealt with," Sec Napolitano said at an event hosted by the Center for Strategic & International Studies' Women in International Security organization. "But again my hope, the ideal way to go is through Congress, but if Congress cannot act, then the executive branch is going to have to." The Homeland Security Secretary said the administration is currently reaching out to the private sector and stakeholders about the order to "look at it and get some feedback" before it's issued, "if there is ultimately that decision to go by the executive order."

Republican governor in Nevada pledges 'full support' to Reid’s online poker bill

A rising Republican star has put his weight behind legislation from Senate Majority Leader Harry Reid (D-NV) that would legalize online poker.

In a letter to congressional leaders, Gov Brian Sandoval (R-NV) said he offers his “full support” to efforts by Reid and Sen. Jon Kyl (R-AZ) to craft federal legislation on Internet gaming. “As Congress considers legislation to address the uncertainty surrounding Internet gaming, I offer my full support to the efforts by Sens. Harry Reid and John Kyl [sic] to draft a federal bill that strikes a balance between consumer protection and maintaining state authority,” Gov Sandoval wrote.

NGA Says It Opposes Draft Internet Gambling Bill

Even though prospects for the legislation have faded this year, the nation's governors told Senate and House leaders that they oppose draft legislation that would tighten restrictions on Internet gambling while allowing for the legalization of online poker.

In a letter to House and Senate leaders, the National Governors Association called on lawmakers to include state input before moving any online-gaming legislation. States have begun taking steps to offer online gambling within their state borders after the Justice Department last fall revised its interpretation of the Wire Act, which deals with state gambling activities. The department said the 1961 law only applies to sports betting, essentially opening the door to other kinds of online gaming.

SoftBank hires lobbyists in bid to buy Sprint

Japanese cellphone service provider SoftBank has hired the Carmen Group, a Washington lobbying firm, as it looks to persuade regulators to allow it to buy control of Sprint, according to disclosure forms. David Carmen, the founder of the Carmen group, will lobby for the Sprint-SoftBank deal, along with John Ladd, a former House Judiciary Committee aide; Bill Signer, a former aide to Rep. Charlie Rangel (D-NY); and Alyssa Ewing.

No Fair Use Carve-Out for Tablet-Friendly DVD Copies

The Librarian of Congress has declined to provide an exemption from copyright protections for so-called place-shifting of DVDs to tablets and other devices.

The Librarian did create new classes of exempt circumvention, including to access captioning or audio descriptions on the DVDs, or to excerpt videos for commentary, criticism and educational uses, but on the recommendation of Register of Copyrights Maria Pallante. Librarian James Billington eschewed the time-shifting carve-out, which would have allowed the copying of DVDs so they could be played on tablets or laptops without DVD-playing capability. Public Knowledge had argued that the inability to play lawfully acquired DVDs on the newest platforms adversely affects noninfringing uses, and that it would be reasonable to allow consumers to solve that by making a copy for noncommercial personal use that could be viewed on those devices. Public Knowledge also argued that allowing the copies would not hurt the market or contribute to piracy.

Sunlight to FCC: 2,100 Files Missing From Political Database

The Sunlight Foundation said that due to imprecise rules and broadcasters' varying interpretations, 2,100 entries in the Federal Communications Commission's television station political files database are missing.

Sunlight says that of the 220 stations that are required to post documents on political ad spending -- the top affiliates in the top 50 markets -- more than half have since removed some of those documents. Sunlight has been monitoring and trying to expand the database (through its Political Ad Sleuth project), as has ProPublica, which Sunlight says has most of those missing files in the cloud. Sunlight says it has started backing up the FCC filings so it can preserve the non-paper trail. In a story on its website, Sunlight Reporting Group's Jake Harper said that broadcasters have been updating ad revisions by replacing the original file, which Sunlight says keeps the public dark on changes like shifts in strategy and spending.

FCC’s Clyburn: There Has Been Great Interest From Broadcasters in Auctions

In a speech to the Americas Spectrum Management Conference in Washington, Federal Communications Commission member Mignon Clyburn emphasized that the FCC's upcoming incentive auctions are going to be voluntary, but also suggested there were some volunteers in the wings. "[T]o me, the most important aspect of this auction is that it is voluntary. That means TV broadcasters may, if it is in their interests, choose to submit bids to give up their spectrum rights in exchange for payment...While we don't know exactly how much spectrum incentive auctions will free up, there has been great interest generated from broadcasters and wireless service providers," she said.

ACA to FCC: Regulatory Fees Should Be Based on Ability to Pay

The American Cable Association has asked the Federal Communications Commission to make satellite operators pay what ACA says is its fair share of regulatory fees, and to scale the fees for all regulated entities according to their ability to pay. The rate would increase with the number of subs, according to ACA's proposal "so that operators with the largest number of subscribers and therefore the greatest ability to pay would pay a higher rate than the operators with fewer subscribers and the least ability to pay." ACA represents smaller cable operators, for whom such fees -- cable ops pay 95 cents per sub regardless of size, it points out -- represent a larger percentage of their revenues.

Consumer Watchdog: Google Profits From Ill-Gotten Data

A consumer group looking to overturn a $22.5 million Federal Trade Commission fine against Google to settle allegations of violating the terms of a 2011 consent decree is now arguing that Google continues to benefit from data it collected during the violation.

An FTC complaint in August alleged that Google improperly bypassed privacy protections on Apple's Safari browser and placed tracking cookies on users' computers. Google agreed to settle the case, but didn't admit wrongdoing. FTC Commissioner Thomas Rosch dissented from the settlement, arguing that Google should admit wrongdoing and that the fine was small relative to Google's revenues. Consumer Watchdog, a persistent critic of Google, argued just that in its bid to have the settlement tossed out. And in a reply memorandum filed in federal court in California, they're now saying that the settlement "permits Google to continue to profit from its wrongdoing indefinitely." According to the filing, though Google set tracking cookies it placed with the browsers of Safari users to expire, the data generated by those cookies while they were active still reside with Google, and can still be used to serve advertising to those same users.

The mobile market isn’t saturated yet: Over half of the world is unconnected

The days of easy mobile growth are gone in the developed world, and those who want a smartphone have one — or 1.57 mobile connections according to recent research. That’s why the theme of third-quarter wireless industry financial results calls in the U.S. have focused on how carriers will grow in a saturated market. But when you look at the rest of the world closely, less than half of the addressable population has a mobile connection according to Wireless Intelligence, the analysis arm of the GSM Association. The GSMA estimates that only 45 percent of the population who could get a mobile subscription (this might be a phone or a tablet or a cellular modem) has one in 2012, but it predicts that number to rise to 53 percent by 2017. That means in the next five years, we’ll cross over the point where more people have mobile access than don’t. That’s a good thing.