June 2013

Verizon Pads NFL Deal

Verizon Wireless will pay $1 billion for rights to air more National Football League games over its customers' smartphones, placing a big bet on changing viewer habits as Americans watch more of their favorite shows on screens other than the television.

Next year, the National Football League will begin to show Sunday afternoon games from customers' home markets on Verizon Wireless phones, adding more of television's most valuable content to the growing inventory that users can watch on mobile devices. The league is already showing games from Sunday, Monday and Thursday nights on Verizon phones. Typically, only one game is played on those nights, while about 10 to 12 are played across the country on Sunday afternoons. Verizon Wireless will pay the NFL $1 billion over four years, according to a person with direct knowledge of the terms. That is nearly 40% more than Verizon agreed to pay when it signed the current four-year, $720 million agreement in 2010, a growth rate similar to what the NFL and other sports leagues have received in their latest TV deals. According to the terms, Verizon Wireless customers who sign up for the service will be able to access NFL games through an app on Sunday, Monday and Thursday nights this season, as well as the league-owned channel, NFL Network, and its NFL RedZone, which shows scoring plays on game days. Beginning in 2014, they also will be able to watch all home-market games on their mobile phones, as well as all postseason games, including the Super Bowl.

RNC hires Facebook manager as chief technology officer

The Republican National Committee (RNC) has hired Andy Barkett, a Facebook engineering manager, as its new chief technology officer (CTO).

After suffering a tough loss in the 2012 presidential election, the RNC in March said the Republican Party must close the digital divide between the GOP and Democrats if it wanted to win the upcoming midterm elections and 2016 presidential race. As part of that effort, the RNC said it wanted to hire a chief technology and digital officer by May 1 who would be responsible for recruiting a team of savvy data scientists, tech and digital advocates that would build a new data and digital operation for the upcoming contests. Barkett's profile on the University of California, Davis Graduate School of Management web site also lists experience as senior director of engineering at Livescribe, senior management consultant at Taos Mountain and technical program manager at Google.

Brussels hardens stance on equal access to internet

Unrestrained access to the internet for companies such as Skype and Google would be guaranteed by law under far reaching “network neutrality” plans by Europe’s top technology regulator. Proposals tabled on June 4 aim to stamp out anti-competitive blocking or “throttling” of services and content by internet providers, as well as ensure greater transparency and choice for consumers.

The European Commission estimates that about 100m Europeans have suffered restrictions on internet usage, such as the blocking of free chat apps like Skype or WhatsApp by companies that offer rival services. Internet service providers, including the region’s largest telecoms groups, would be forced to provide equal access for even the heaviest web content suppliers as well as provide transparency to customers over broadband speeds and prices. “The commission is 100 per cent committed to the open internet,” said Neelie Kroes, EU commissioner for telecoms. “Anti-competitive blocking needs to end. I think it’s unsustainable and on the way out, but I am willing to push it out.”

Fears over future trade with China curb UK criticism of Huawei

A critical parliamentary report into Huawei Technologies, the Chinese telecommunications company, has been heavily redacted by the government amid concern about the potential impact on Chinese investment in the UK.

The report by the Intelligence and Security Committee will highlight the central role of Huawei in Britain’s telecommunications infrastructure since it struck a big supply deal with BT in 2004. People familiar with the report say it will suggest that staff from GCHQ, Britain’s intelligence listening post, should oversee the Banbury cybersecurity center, where Huawei’s equipment is examined. The facility is currently managed by the Chinese company. A person familiar with the report said such a move would “reassure” the public here was nothing to fear from Chinese involvement in Britain’s telecoms networks. Critics, particularly in the US, have raised concern over Huawei’s alleged ties to the Chinese state.

In China, an Empire Built by Aping Apple

China is notorious for its knockoffs. But now comes a knockoff of one of the gods of American ingenuity: Steven P. Jobs.

In a country where products like iPhones are made but rarely invented, Lei Jun — entrepreneur, billionaire and professed Jobs acolyte — is positioning himself and his company as figurative heirs of Mr. Jobs. The Chinese media have nicknamed his company, Xiaomi, the “Apple of the East.” The title is a stretch, by almost any measure. But Mr. Lei nonetheless is carefully cultivating a Jobsian image here, right down to his jeans and dark shirts. He is also selling millions of mobile phones that look a lot like iPhones. Chinese consumers — and deep-pocketed investors overseas — seem to be believers. And yet Mr. Lei’s biggest believer may be himself. He bounds onto podiums to introduce new cellphones. He proclaims things that may, to many, sound outlandish.

Republicans push for unrestricted airwave auction

Republicans on the Senate Communications Subcommittee argued that the government should not limit the ability of AT&T and Verizon to bid in the upcoming auction of airwave licenses.

The Justice Department's Antitrust Division has urged the Federal Communications Commission to use caps or limits to ensure that Verizon and AT&T do not buy up all of the spectrum licenses at auction. The agency warned that the industry giants could use the auction to kill off competition from Sprint, T-Mobile and regional carriers.

"I believe the Commission should not pick winners or losers among individual companies, but instead let all interested participants freely compete against one another in the open market," Sen. John Thune (R-SD), the Commerce Committee's ranking member, said during the Subcommittee hearing on the state of wireless communication. "To achieve success, it is critical that there be widespread all-inclusive participation in the auction," said Sen. Roger Wicker (R-MS), a subcommittee member. Sen. Dean Heller (R-NV) worried that restrictions on participation would reduce the government's revenue, which he said is key to the auction. Delara Derakhshani, a policy counsel for the Consumers Union, warned that the auction won't benefit consumers unless it promotes competition. "The two largest providers of wireless services today are positioned to dominate the auction unless the government puts in place appropriate rules," she testified.

There was general agreement at the hearing that the wireless industry needed more spectrum, including unlicensed spectrum for Wi-Fi, but how much of it would be coming from broadcasters was less clear. Steve Largent, who heads CTIA: The Wireless Association, said that one answer was to "coerce" some of the 70% of usable spectrum from the government. He said he hoped the Federal Communications Commission could get back its target of 120 MHz from broadcasters, but was not at all sure that would happen.

On the Internet, mobile outpacing home broadband

Having the Internet with you on the go is so essential, that in four years, Americans will be more likely to have a mobile Internet device than wired home broadband, forecasts a new report.

This year, consumer spending on Internet-connected smartphones, tablets and other devices will surpass home broadband service fees for the first time, according to PricewaterhouseCoopers' "Entertainment & Media Outlook 2013-2017" report. In four years, nearly 286.7 million in the U.S., or 87% of the population, will have mobile Internet devices, while about 85% of homes will have broadband. Mobile Internet access spending will top $54 billion in the U.S. this year, compared with $49.6 billion in home Internet spending, the consulting firm estimates in the report, out today. In 2012, home Internet spending ($46.5 billion) slightly outpaced mobile ($44.5 billion).

iPhone 4 imports banned in US patent case

The U.S. International Trade Commission said it is banning imports of Apple's iPhone 4 and iPad 2 3G after determining the devices violate a patent held by rival Samsung Electronics.

The ruling, issued in Samsung's patent lawsuit against Apple, could end Apple's ability to sell the older versions of the iPhone and iPad in the U.S. because they are assembled in China. The panel issued a limited import ban and a cease-and-desist order for AT&T models of the iPhone 4 and iPad 2 3G, which are still made. IPhone 3GS and iPad 3G, which are no longer made, were also cited in the ruling. Apple says it plans to appeal. President Barack Obama has 60 days to invalidate the order.

PwC: the U.S. consumer e-book market will be bigger than the print book market by 2017

Lots of different outlets are trying to project the size of the US e-book market and how fast it’s growing. In its annual “Entertainment & Media Outlook,” set to be released June 5, PricewaterhouseCoopers estimates that trade (consumer, not educational or academic) e-books will drive $8.2 billion in sales by 2017 — surpassing projected print book sales, which it thinks will shrink by more than half during that period. The total size of the trade book industry, PwC estimated, will be $16.1 billion by 2017 — smaller than it was in 2008, with e-books not quite able to pick up the slack as the print market shrinks. PwC also projects that e-books will make up 38 percent of all book sales — both trade and educational books — by 2017, from 16 percent today.

Setting the record straight on the FCC Lifeline program

[Commentary] Much has been made in the media over the Federal Communications Commission's Lifeline program, which helps make telephone service more affordable for poor families. Most of the media coverage, however, has been slanted and misleading.

Last month I testified at a hearing before the House Energy and Commerce’s subcommittee on Communications and Technology titled “The Lifeline Fund: Money Well Spent?” My testimony provided a factual account of the history of the Lifeline program and the ways in which it is bettering lives today. Stories in the media of corporate abuse for profit have drowned out the stories of the very real people that use Lifeline as a tool to improve their lives and move away from government assistance. The vast majority of Lifeline recipients are grateful seniors, deserving veterans and folks who are going through the hardest times of their lives — facing job losses, illnesses, disability and family tragedies. Lifeline enables the most vulnerable members of our society with access to 9-1-1 emergency services, the cellular AMBER Alert notifications and the emerging wireless emergency broadcast system Personal Localized Alerting Network (PLAN) that saved lives during Hurricane Sandy. For these people, Lifeline literally lives up to its name and must continue.

[González is the vice president of policy and legal affairs for the National Hispanic Media Coalition]