December 2012

CHILDREN AND MEDIA

COPPA RULES REVISION
[SOURCE: Federal Trade Commission, AUTHOR: Press release]
The Federal Trade Commission adopted final amendments to the Children’s Online Privacy Protection Rule that strengthen kids’ privacy protections and give parents greater control over the personal information that websites and online services may collect from children under 13. The FTC initiated a review in 2010 to ensure that the COPPA Rule keeps up with evolving technology and changes in the way children use and access the Internet, including the increased use of mobile devices and social networking. The updates to the COPPA Rule reflect careful consideration of the entire record of the rulemaking, which included a public roundtable and several rounds of public comments sought by the agency. The final amendments:
modify the list of “personal information” that cannot be collected without parental notice and consent, clarifying that this category includes geolocation information, photographs, and videos;
offer companies a streamlined, voluntary and transparent approval process for new ways of getting parental consent;
close a loophole that allowed kid-directed apps and websites to permit third parties to collect personal information from children through plug-ins without parental notice and consent;
extend coverage in some of those cases so that the third parties doing the additional collection also have to comply with COPPA;
extend the COPPA Rule to cover persistent identifiers that can recognize users over time and across different websites or online services, such as IP addresses and mobile device IDs;
strengthen data security protections by requiring that covered website operators and online service providers take reasonable steps to release children’s personal information only to companies that are capable of keeping it secure and confidential;
require that covered website operators adopt reasonable procedures for data retention and deletion; and
strengthen the FTC’s oversight of self-regulatory safe harbor programs.
benton.org/node/142074 | Federal Trade Commission | FTC blog | Washington Post | LATimes | WSJ | AdWeek | Broadcasting&Cable | Sen Rockefeller | Rep Waxman | Center for Digital Democracy
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RULES FOR APPLE, GOOGLE, FACEBOOK?
[SOURCE: Los Angeles Times, AUTHOR: Jessica Guynn]
Tech giants such as Apple, Facebook and Google scored a victory in the Federal Trade Commission’s new rules governing kids’ online privacy. Federal regulators exempted app purveyors such as Apple's App Store and Google Play from having to police apps. Providers of plug-ins such as Facebook with its “Like” button were also exempted. According to the new rules, they will only be responsible if they have "actual knowledge" that an online service or app is not complying with the new rules governing how they are allowed to collect information from kids. Rule changes that the FTC proposed in August would have made the tech giants more responsible for apps that violate the rules. But the tech companies engaged in heavy lobbying efforts in recent months to dial back the proposals, arguing they would stifle innovation and hamper economic growth. During a news conference, FTC Chairman Jon Leibowitz said regulators never meant to include app stores and simply clarified their proposals to reflect that.
benton.org/node/142073 | Los Angeles Times | GigaOm
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BILL CALLS FOR STUDY OF VIDEO GAME VIOLENCE
[SOURCE: The Hill, AUTHOR: Brendan Sasso]
Senate Commerce Committee Chairman Jay Rockefeller (D-WV) introduced a bill that would require the National Academy of Sciences to study the impact of violent video games and other content on children. Chairman Rockefeller said the bill would lay the groundwork for Congress to consider new regulations of violent entertainment content. The bill would require the National Academy of Sciences to examine whether violent video games and programming cause children to act aggressively or otherwise hurt their well-being. The academy would look at whether the interactive nature and vivid way violence is portrayed in video games has a unique impact on children. In a statement, Rockefeller also called on the Federal Trade Commission (FTC) and the Federal Communications Commission (FCC) to expand their work in overseeing violent content.
benton.org/node/142059 | Hill, The | B&C
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STUDIOS MUST CHANGE PLANS
[SOURCE: New York Times, AUTHOR: Brooks Barnes, Bill Carter]
When news broke about the massacre in Newtown (CT), the USA cable channel jumped into action. Using key words like “shooting,” “school” and “children,” executives reviewed scripts and identified problematic episodes of shows like “Law & Order: Special Victims Unit” and “NCIS” that were about to run. Movie studios and television networks used to confront this balancing act a couple times a decade. But this year alone there have been three incidents that have required a crisis response — the Trayvon Martin shooting in Florida last spring; the Aurora, Colo., movie-theater shooting over the summer; and now the Newtown school massacre. The shooting has prompted soul searching of a more personal kind in the entertainment capital. Hollywood’s power lunches have been filled in recent days with conversations about hypocrisy, according to people in the industry: Many of those who are liberal leaning and support gun control also make their livings selling violent images. There is also a creeping dread in Hollywood that the industry will be drawn into a governmental crackdown on violent imagery.
benton.org/node/142084 | New York Times
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SPONGEBOB APP TO RETURN
[SOURCE: The Hill, AUTHOR: Jennifer Martinez]
Cable channel Nickelodeon said its "SpongeBob Diner Dash" mobile game app will be resubmitted to Apple's App Store after concluding that it did not collect kids' names, email addresses and other personal information. The popular kids-focused channel temporarily pulled the "SpongeBob" app from the App Store after a privacy watchdog group, the Center for Digital Democracy (CDD), charged that it violated children's online privacy laws in a complaint to the Federal Trade Commission. After investigating the claims, the Viacom-owned channel said it found that the app did not violate the Children's Online Privacy and Protection Act (COPPA). There is a prompt in the app where players can input their email address so they can receive a newsletter. The CDD took issue with the email prompt in its complaint, but Nickelodeon countered that it was "a template function from the developer that was never operational in this app, and no emails or personally identifiable information were collected." Nickelodeon also denied that it collected the names that players typed into the app. The company said the names were stored locally on the players' mobile phones and were never sent to any outside server. Nickelodeon also argued that the app's push notifications "are within the current COPPA guidelines" and informed players about new features or levels within the game. Laura Moy, an attorney at Georgetown Law's Institute for Public Representation, said the app is collecting online contact information in order to send kids push notifications. "There is no question that push notifications come from the app operator's server over the Internet to the device," said Moy, who prepared the complaint on behalf of the CDD.
benton.org/node/142057 | Hill, The | B&C
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BROADBAND/TELECOM

US DISAPPOINTED WITH TREATY TALKS
[SOURCE: The Hill, AUTHOR: Jennifer Martinez]
U.S. Ambassador Terry Kramer said he was disappointed that a United Nations agency refused to sideline treaty proposals backed by Russia and China that threatened Internet freedom. "I can say, candidly, I was disappointed these issues weren't taken off the table," Ambassador Kramer said in his first public appearance since the U.N. telecommunications treaty conference ended. The U.S. refused to sign the treaty, arguing that it included troublesome Internet-related provisions. Ambassador Kramer, who headed up the U.S. delegation during the conference, lamented the acrimonious outcome to the talks. "I very much believe that this kind of war-mongering conversation on the ITU is a very counterproductive exercise," Ambassador Kramer said at an Internet Society-hosted event at American University. "What should be the discussion is, how do you bolster multi-stakeholder governance? It is a positive message, but it's a pragmatic one." Ambassador Kramer said he hopes ITU Secretary-General Hamadoun Toure will resolve to keep the ITU's focus on telecommunications in the future, rather than expanding its attention to the Internet. "I think that if he's a forward-looking leader, he'll realize that the telecom charter is the right area and these other areas are going to get him nowhere in terms of broader support," he said. In the short-term, the U.S. needs to keep engaging other countries, particularly English-speaking African countries and nations in Latin America, in the discussion about Internet governance, he said. "They're listening, they want to have a dialogue," Ambassador Kramer said. "We need to be spending more time with those nations."
benton.org/node/142072 | Hill, The
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THE FUTURE OF INNOVATION IS AT STAKE IN THE DEBATE OVER INTERNET FREEDOM
[SOURCE: nextgov, AUTHOR: Jessica Herrera-Flanigan]
[Commentary] The World Conference on International Telecommunications concluded with passage of revisions to a 25-year-old treaty written for a telecom-focused world to include the Internet. One simple sentence caused the U.S., Canada, the United Kingdom, and 55 other nations to vote against a new agreement: “[A]ll governments should have an equal role and responsibility for international Internet governance and for ensuring the stability, security and continuity of the existing Internet.” How a nation controls the Internet affects commerce, intellectual property rights, and trade. The Internet does not follow traditional borders or stop at nations’ edges so a common understanding of how it should be governed and by whom is critical to its future. Nations, especially those that espouse sovereignty over freedom, know that control over the Internet affects their national and international stature. Deciding whether sovereignty or freedom should underpin cyberspace will set the direction on how nations’ treat significant legal and policy challenges, such as national defense norms; criminal and civil penalties; standards; trade and privacy. If nations are allowed to dictate sovereignty over freedom, then online firewalls will become the Berlin Wall of the 21st Century. While last week’s action is not binding, it does tell us that the U.S. and its allies will need to be aggressive in diplomatic and international negotiations going forward with regards to Internet governance. Tearing down walls, once built, is a difficult, if not impossible, task. In many ways, the future of innovation can and will be decided by who wins the Internet debate on the international stage.
benton.org/node/142071 | nextgov
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FCC’S LIFELINE REFORMS SAVED MORE THAN $210 MILLION IN 2012
[SOURCE: Federal Communications Commission, AUTHOR: ]
The Federal Communications Commission announced that savings from its comprehensive reform of its Lifeline program earlier this year reached nearly $214 million in 2012, surpassing the $200 million target the FCC set when it comprehensively reformed the program in January. The FCC also announced the selection of 14 pilot projects in 21 states and Puerto Rico that will field test approaches to using Lifeline to increase broadband adoption among low-income Americans.
Major savings are being realized by:
Eliminating “Link Up” subsidies for new connections, which were acting as unnecessary “bounties” for new sign-ups. As a result, Link Up expenditures dropped from roughly $14 million in May – the final month Link Up payments were sent to providers -- to less than $200,000 in December. Link Up is still available in some Tribal areas.
Requiring carriers to obtain proof of income eligibility from new subscribers. These changes took effect in June and were first reflected in August disbursements, which dropped by nearly $40 million in one month.
Clarifying that Lifeline subscriptions are limited to one per household, and scrubbing subscriber roles of duplicates. The FCC has reviewed over 12 million subscriber records and eliminated 1.1 million duplicate subscriptions, which will result in $128 million in annualized savings. The process of examining subscriber rolls state-by-state continues as the FCC develops a comprehensive database that will automatically check for duplicate subscriptions.
Requiring providers to verify the continued eligibility of their subscribers for Lifeline on annual basis.
Using $14 million in savings from reforms, the FCC’s Wireline Competition Bureau has chosen 14 high-quality pilot projects to advance broadband adoption through Lifeline. The projects will provide critical data and rigorous analysis regarding how Lifeline can efficiently and effectively increase broadband adoption and retention among low-income consumers. Located in 21 states and Puerto Rico, the pilots will also provide broadband for nearly 75,000 low-income consumers who now lack service. In order to rigorously test how best to use Lifeline to support broadband adoption, the pilots will gather
data and provide analysis on a wide a range of geographic, technological, and programmatic variables. Projects include five wireless broadband projects, seven wireline broadband projects, and two offering wireline or wireless technologies. Seven will test discounted service in rural areas, including two on Tribal lands, and seven will test discounted service in urban and suburban areas. Variables that will be experimentally tested include the use of digital literacy training, equipment types, subsidy levels, speed ranges, and usage limits. The Pilot Program will run for 18 months, beginning on Feb. 1, 2013. Winners have three months to set up the pilots, and must provide one year of subsidized service. The pilots must complete data collection and analysis in the final three months.
Frontier Communications Corporation (OH, WV)
Gila River Telecommunications, Inc. (AZ – Tribal)
Hopi Telecommunications, Inc. (AZ – Tribal)
National Telecommunications Cooperative Association (NTCA) Project (which includes the following carriers: Alpine Communications (IA); and Leaco Rural Telephone (NM))
Nexus Communications, Inc. (OH, MI, IA, NV, CA, LA, MS, NJ)
Partnership for a Connected Illinois Project (which includes the following carriers: Adams Telephone Cooperative; Cass Telephone Company; Harrisonville Telephone Company; Madison Telephone Company; Mid-Century Telephone Cooperative; Shawnee Telephone Company; and Wabash Telephone Cooperative (IL))
PR Wireless, Inc. (Puerto Rico)
Puerto Rico Telephone Company (Puerto Rico)
T-Mobile Puerto Rico LLC (Puerto Rico)
TracFone Wireless, Inc. project using smartphones (FL, MD, TX, WA, WI, MA)
Troy Cablevision, Inc. (AL)
Vermont Telephone Company, Inc. (VT)
Virgin Mobile USA, L.P. (MA, OH)
XChange Telecom Corp. (NY)
benton.org/node/142070 | Federal Communications Commission | read the FCC Order on pilot projects
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SEATTLE AND STRATEGIC BANDWIDTH ADVANTAGE
[SOURCE: CivSource, AUTHOR: Blair Levin, Ellen Satterwhite,]
[Commentary] When Google began deploying its gigabit-to-the-home, fiber network in Kansas City, many techies watched with envy. The lure of Midwestern kindness, affordable rent and cheap food, combined with world-leading bandwidth at prices equal to far slower options elsewhere has proven so enticing that some have even moved there. But they don’t have to move to the Midwest just yet; they can spur their hometown to action. Seattle just announced a plan to bring gigabit service to a dozen of its neighborhoods. Once an agreement is signed, the City, the University of Washington and Gigabit Squared–a digital economic development company—plan to build out wireless and wired connectivity to over 100,000 Seattle residents in the span of 24 months. Seattle’s announcement is significant for its size, but more importantly because it points to a path, with proper strategy and planning, that any community can follow to an upgrade. This project shows how smart use of community assets like rights of way and dark fiber can improve the conditions for investment in next generation networks. Under Mayor McGinn’s leadership, Seattle added and made available additional conduit underground as part of its planned revitalization of the historic Pioneer Square and approved a policy to lease unused capacity from its existing 500 miles of fiber so providers could improve broadband access and services throughout the city. This forward-leaning approach to digital infrastructure has paid off: in a recent State by State Broadband Study, Washington State ranked first out of all 50 U.S. states on indicators of broadband adoption, network quality and economic structure. Not only has the infrastructure improved, but, as we found in our study, states actively investing in and utilizing broadband networks are “seeing stronger economic growth, better connected communities and enhanced quality of life.” While Washington benefits from a healthy tech economy, great local leadership such as Seattle has with its Mayor and the University of Washington has with its President has maximized the region’s assets.
benton.org/node/142069 | CivSource
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DEREGULATING VOICE
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
Telephone companies say they are no longer your father's monopoly and have asked to get out from under decades of voice service regulations. USTelecom asked the Federal Communications Commission for a declaratory ruling that incumbent local exchange carriers (ILECs) are no longer the dominant providers by virtue of their switched-access services, pointing to new IP nets and service provided by competitors, like cable operators now bundling voice service into their offerings. Such a determination would get them out from under tariffs but not obligations like 911, privacy and disability access they point out in the filing. USTelecom president Walter McCormick said the petition was meant to be the beginning of a dialog about moving his industry closer to parity with its competition.
benton.org/node/142052 | Broadcasting&Cable
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ACCESSIBILITY

FCC HONORS INNOVATORS IN ACCESSIBILITY COMMUNICATIONS TECHNOLOGY
[SOURCE: Federal Communications Commission, AUTHOR: Press release]
Federal Communications Commission Chairman Julius Genachowski celebrated the innovative achievements of technologists whose work in communication-related areas benefits people with disabilities, bestowing the second Awards for Advancement in Accessibility (Chairman's AAA). The Chairman’s AAA, a project of the FCC’s Accessibility and Innovation Initiative (A&I Initiative), based on a recommendation of the FCC’s 2010 National Broadband Plan, recognizes outstanding private and public sector ventures in accessibility and innovation. The A&I Initiative seeks to facilitate dialogue among industry, assistive technology companies, app developers, government representatives, and consumers to allow stakeholders to share best practices and solutions for accessible communications technologies. Seven winners and two honorable mentions were recognized, chosen in six different categories: Consumer Empowerment Information; Mobile Applications; Civic Participation Solutions; Education: College or University; Video Programming; and Geo-Location Solutions.
[more at the URL below]
benton.org/node/142068 | Federal Communications Commission | Chairman Genachowski
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GOVERNMENT & COMMUNICATIONS

INFO SHARING AND SAFEGUARDING
[SOURCE: The White House]
Our national security depends on our ability to share the right information, with the right people, at the right time. This information sharing mandate requires sustained and responsible collaboration between Federal, state, local, tribal, territorial, private sector, and foreign partners. The 2012 National Strategy for Information Sharing and Safeguarding provides guidance for effective development, integration, and implementation of policies, processes, standards, and technologies to promote secure and responsible information sharing. Our responses to these challenges must be strategic and grounded in three core principles. First, in treating Information as a National Asset, we recognize departments and agencies have achieved an unprecedented ability to gather, store, and use information consistent with their missions and applicable legal authorities; correspondingly they have an obligation to make that information available to support national security missions. Second, our approach recognizes Information Sharing and Safeguarding Requires Shared Risk Management. In order to build and sustain the trust required to share with one another, we must work together to identify and collectively reduce risk, rather than avoiding information loss by not sharing at all. Third, the core premise Information Informs Decisionmaking underlies all our actions and reminds us better decisionmaking is the purpose of sharing information in the first place.
The Strategy focuses on achieving five goals:
Drive Collective Action through Collaboration and Accountability.
Improve Information Discovery and Access through Common Standards.
Optimize Mission Effectiveness through Shared Services and Interoperability.
Strengthen Information Safeguarding through Structural Reform, Policy, and Technical Solutions.
Protect Privacy, Civil Rights, and Civil Liberties through Consistency and Compliance.
benton.org/node/142067 | White House, The
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WIRELESS/SPECTRUM

FCC OKs SPECTRUM DEALS
[SOURCE: Bloomberg, AUTHOR: Todd Shields]
AT&T won permission from the Federal Communications Commission to acquire airwaves from four companies: Comcast, San Diego Gas & Electric Co, Horizon Wi-Com LLC and NextWave Wireless. AT&T, the second-largest U.S. wireless operator, has proposed at least 24 deals this year to acquire frequencies as it seeks to catch up with top mobile carrier Verizon Wireless, which is ahead in the race to stockpile the industry’s most precious asset. The companies involved told the FCC the spectrum is currently underutilized, the agency said. Transferring the airwaves to Dallas-based AT&T will help boost mobile high-speed Internet use, the FCC said in its order. San Diego Gas & Electric had acquired the airwaves for smart grid use, the agency said.
GigaOm reports that the licenses cover 82 percent of the U.S. population in the contiguous 48 states, and, combined with AT&T’s current extensive WCS holdings, would give AT&T control over most of the band. There are only a handful of other WCS holders of any note – Sprint being one – but you can expect AT&T to approach those operators in coming months because gaining complete control of the band is core to AT&T’s plans.
benton.org/node/142055 | Bloomberg | GigaOm
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APPS TO REGULATE APPS
[SOURCE: New York Times, AUTHOR: Tim Wu]
Change isn’t always pretty, but a healthy city is one where old systems — even the hallowed taxi medallion — stand to be challenged by the winds of creative destruction. Uber and Airbnb are just the first examples of a wave of services trying to match willing buyers and sellers in unexpected ways. That’s why it is so important that regulators get this right, lest they discourage those who are trying to follow their lead. The challenge for regulators is to simultaneously allow change while protecting us from the worst effects of it. It is, in short, a time to think carefully, rather than banning first and asking questions later.
benton.org/node/142077 | New York Times
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OWNERSHIP

FTC PUSHES ANTITRUST INQUIRY INTO JANUARY
[SOURCE: New York Times, AUTHOR: Edward Wyatt, Claire Cain Miller]
Google was prepared to start the holidays early this week, by settling its antitrust dispute with federal regulators without a harsh punishment. But in shelving its inquiry until January, the Federal Trade Commission has put stronger penalties back on the bargaining table, people briefed on the investigation who were not authorized to speak publicly about it said. Google and the agency had been planning to sign a settlement this week that would have said Google would change some of its behavior but that would not have been subject to court action. The agency may now demand a consent decree — a formal order detailing anticompetitive behavior and an agreement that if the company does the same thing again, it could be fined and subject to court sanctions. Google has instead offered voluntary concessions. But the people briefed, and others close to the negotiations, said the agency was unlikely to take a second look at one of the major issues — Google’s dominance in specialized search, like travel and local reviews — because the legal hurdles remain high.
Politico reports that European regulators appear headed toward a dramatically different conclusion to their antitrust probe of Google than their American counterparts — a binding agreement that could cost the search company dearly if violated.
benton.org/node/142080 | New York Times | Politico
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GOOGLE SELLS PART OF MOTOROLA
[SOURCE: Wall Street Journal, AUTHOR: Tess Stynes]
Cable-equipment maker Arris Group has agreed to acquire Motorola's set-top box business from Google in a cash-and-stock deal valued at about $2.35 billion. Google has been shopping the unit, one of the largest providers of set-top boxes, for months. The Internet giant will receive $2.05 billion in cash and roughly $300 million in Arris stock, representing an ownership stake of about 15.7% after the deal's closing, which is expected by the second quarter. Google bought Motorola Mobility Holdings Inc. for $12.5 billion in May, largely for its intellectual property and smartphone hardware to boost its Android operating system. Arris said the acquisition is expected to lead to $100 million to $125 million in annual cost synergies.
benton.org/node/142081 | Wall Street Journal | Bloomberg | FT | Associated Press
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TELEVISION/RADIO

NIELSEN-ARBITRON AND COMPETITION
[SOURCE: MediaPost, AUTHOR: ]
Nielsen’s $1.26 billion deal to acquire Arbitron would make the world’s largest supplier of media and marketing research even bigger, giving it not just greater dominance over another medium, but yet another one of Madison Avenue’s so-called market “currencies,” and constricting the supply chain of media ratings that advertisers and agencies use as the basis of hundreds of billions of dollars’ worth of media buys. The timing of the deal is ironic, coming nearly two decades after Dec. 31, 1993, when Arbitron officially shut down its television ratings business -- making Nielsen the de facto monopoly supplier of television ratings, and putting it in a position to dominate the rest of the advertising food chain for decades to come. The deal also comes as Nielsen executives claim to have reached the “tipping point” for becoming the ad industry’s trading currency for another key medium -- online -- following an especially rapid and aggressive push to make its Nielsen Online Campaign Ratings service Madison Avenue’s standard for Internet advertising, including essentially giving the service away for free to some of its biggest customers until it achieves a critical mass of penetration among big online advertisers. In other words, if regulators approve Nielsen’s acquisition of Arbitron, the consolidated company will not simply be a supplier of media audience estimates and consumer marketing insights, but will be the sole supplier of advertising trading currency for three major media: TV, online and radio. "It makes Nielsen the currency for $85 billion in advertising -- $68 billion for TV and $17 billion for radio,” Brad Adgate, senior vice president-director of research at Horizon Media, estimates of just the TV and radio portion of Nielsen’s market position.
benton.org/node/142047 | MediaPost
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POLICYMAKERS

NO NOMINATION VOTE YET
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
The Senate Commerce Committee has still not voted on the nomination of Mignon Clyburn to a full, six-year term on the Federal Communications Commission. Also awaiting a vote is the nomination of Joshua Wright to the Federal Trade Commission. According to a committee source, there was a second attempt late Dec 19 to vote the nominations in a break from Senate floor business, but they lacked a quorum, so no vote. Another attempt at a vote is expected Dec 20.
benton.org/node/142078 | Broadcasting&Cable
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December 2012

The Development and Diffusion of Digital Content

Benton Editorial

Time to Reflect: An End-of-Year Message from Charles Benton

December 20, 2012 (FTC Updates Children’s Online Privacy Protection Rule)

Newtown Massacre Changes Plans at Movie and TV Studios

NAB Ready to Cooperate With Congress On Violence Study

Entertainment Software Association responds to Rockefeller video game bill

Google Sells Cable-Box Unit for $2.35 Billion

Citing Logistics, FTC Pushes Antitrust Inquiry Against Google Into January

Apple 'Pinch to Zoom' Patent Rejected by U.S. in Initial Ruling

Further Delay In Voting Commissioner Clyburn Nomination