June 4, 2013 (Dispute Over Restrictions in a US Auction of Airwaves)
BENTON'S COMMUNICATIONS-RELATED HEADLINES for TUESDAY, JUNE 4, 2013
FirstNet, Mobile Cybersecurity and a Senate hearing on the State of Wireless Communications http://benton.org/calendar/2013-06-04/
WIRELESS/SPECTRUM
A Dispute Over Restrictions in a US Auction of Airwaves
South Carolina Republican Legislators Ask FCC to Stick to Repacking Budget [links to web]
Comcast: Crucial for Government to Free Up More Unlicensed Wireless [links to web]
Sprint Questions Dish-Clearwire Bid
Hackers are increasingly targeting Android devices, McAfee warns [links to web]
EMERGENCY COMMUNICATIONS
Recruitment of First Responder Network Authority Board of Directors - public notice
FirstNet claims Verizon ties are not influencing its plans
INTERNET/BROADBAND
Verizon hits back in network neutrality case
16 BTOP Projects Honored as Broadband “Heroes” - press release
Silicon Valley at front line of global cyber war
For Broadband In Northern Illinois, The Future Is Now [links to web]
Suspension lifted, Eagle-Net Alliance is ready to build [links to web]
Audit finds "material weaknesses" with EAGLE-Net's accounting [links to web]
Cable One Eliminates Broadband Overage Fees [links to web]
Cox Extends Connect2Compete Program to Virginia [links to web]
TELECOM
FCC Needs To Step Up On Voice Link; Nature (and Natural Disasters) Abhor A Vacuum - analysis
The Fire Island Voice Link Solution - press release
CONTENT
Government says Apple conspiracy raised prices
Apple e-book trial: 5 things to watch for
Amid reports of new Apple streaming music service, antitrust violation may be obstacle [links to web]
TELEVISION
Sinclair Buys 6 Titan Television Stations [links to web]
Public Television Stations to Consolidate Broadcasting Operations - press release [links to web]
NCTA, CEA Say DOE Should Pause Set-Top Regulation Effort [links to web]
Top Wall Street Analyst: Pay TV “Cord-Cutting Is Real” [links to web]
ADVERTISING
As Social Media Sites Thrive, Advertisers Seek More Control of Their Brand
CHILDREN AND MEDIA
Firms sweat details of revised COPPA rules
Most Parents Show Little Concern About Children’s Media Use, Survey Says
STORIES FROM ABROAD
Jordan Blocks Local Access to 300 News Web Sites
UK considers stepping up Internet blocking
Here’s what Europe’s network neutrality law would look like
Kenyans Find the Unintended Consequences of Mobile Money [links to web]
French Court Hits Apple With $6.5 Million Royalty Tax Bill [links to web]
France removes Internet cut-off threat from its anti-piracy law [links to web]
MORE ONLINE
Genachowski: Mistake to slow down regulations [links to web]
SAG-AFTRA Members Approve New Commercials Contract [links to web]
Political Consultants: Campaigns Stay Clear Of Privacy Pitfalls [links to web]
The Echo Chamber of Silicon Valley [links to web]
WIRELESS/SPECTRUM
AIRWAVES AUCTION
[SOURCE: New York Times, AUTHOR: Edward Wyatt]
In the mobile high-speed Internet market, the Obama Administration believes it may be necessary to limit competition in order to promote it. That paradox sums up a brewing fight over whether the two largest cellphone companies — AT&T and Verizon Wireless — will be allowed to participate without restrictions in the planned auction of new airwaves for wireless broadband next year. The Administration’s antitrust team urged the Federal Communications Commission in April to develop auction rules that ensure that T-Mobile US and Sprint, the two smaller nationwide mobile carriers, are able to buy some of the prime airwaves and better compete nationally with the two larger companies. The suggestion that some auction participants could get favored treatment has spawned a dispute involving corporate lobbyists, academics and members of Congress on both sides of the debate. Some television and radio broadcasters have weighed in against auction limits while consumer advocates and some big companies that use mobile broadband in their operations have backed such limits. Whatever the FCC decides will have huge implications on the ability of American consumers to inexpensively use the Internet from their smartphones, tablets and other portable devices. It could also affect how much money will be available to build a nationwide communications network for first responders, a plan that has been on the drawing board since the Sept. 11 terrorist attacks.
benton.org/node/153114 | New York Times
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DISH-CLEARWIRE BID
[SOURCE: Wall Street Journal, AUTHOR: Thomas Gryta]
Sprint Nextel raised objections over Dish Network's tender offer to acquire Clearwire, saying the bid is "not actionable", continuing the complicated drama over control of the mobile broadband provider that is majority-owned by Sprint. In a letter to Clearwire's board, Sprint said Dish's bid of $4.40 a share for Clearwire last week—made just before a planned shareholder vote on a buyout by Sprint—isn't workable without Sprint's approval. Sprint, which has had disagreements with network partner Clearwire, says that Dish is requesting certain governance rights from Clearwire that can't be legally handed over without consent of Sprint and some other shareholders. "Sprint will enforce its legal and contractual rights. Thus, the Dish proposal is not actionable," the letter, signed by Sprint Chief Executive Dan Hesse, says. A Clearwire spokeswoman said a special committee of the company's board is continuing its review of the Dish bid and hasn't yet made a determination to change its recommendation for the Sprint deal. Clearwire won't make further comments until the review is complete, she said. In its letter, Sprint seemed to be reminding Clearwire of their relationship, noting that Clearwire cannot "simply take away those rights when convenient to benefit a minority stockholder that finds such bargained-for rights inconvenient or limiting to its desire to extract extra gain."
benton.org/node/153075 | Wall Street Journal | GigaOm
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EMERGENCY COMMUNICATIONS
FIRSTNET BOARD
[SOURCE: National Telecommunications and Information Administration, AUTHOR: Lawrence Strickling]
The National Telecommunications and Information Administration (NTIA) issues this Notice on behalf of the First Responder Network Authority (FirstNet) as part of its annual process to seek expressions of interest from individuals who would like to serve on the FirstNet Board. When the Acting Secretary of Commerce made the initial appointments to the Board last August 20, 2012, by law, four of the 12 appointments of nonpermanent members were for one-year terms. While the Secretary of Commerce has the discretion to reappoint individuals to serve on the FirstNet Board provided they have not served two consecutive full three-year terms,3 NTIA issues this Notice in case the Secretary will need to fill any vacancies on the Board at the time the one-year terms expire on August 19, 2013. Expressions of interest for appointment to the FirstNet Board will be accepted until June 14, 2013.
benton.org/node/153068 | National Telecommunications and Information Administration
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FIRSTNET AND VERIZON
[SOURCE: Fierce, AUTHOR: Tammy Parker]
Despite some concerns regarding former ties between some appointed board members of the First Responder Network Authority and leading U.S. mobile operators, a FirstNet spokeswoman says there are no conflicts of interest that might impact development of the nationwide public-safety broadband network (NPSBN). Some observers allege that a cozy relationship exists between certain FirstNet board members representing telecom interests and mobile carriers, particularly Verizon Wireless, and that a secret plan has been drawn up under which the NPSBN will be built out using Verizon's network resources. During a regional meeting held in Denver during late May, FirstNet board member Jeff Johnson denied that the authority has already created a business plan or has decided upon the network design. "You'll know when we have a plan when we vote on it," he said. However, FirstNet Chairman Sam Ginn's financial history with AirTouch Communications continues to fuel rumors of potential conflicts. AirTouch eventually morphed into what is now Verizon Wireless.
benton.org/node/153067 | Fierce
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INTERNET/BROADBAND
NETWORK NEUTRALITY CASE
[SOURCE: The Hill, AUTHOR: Brendan Sasso]
The courts should not defer to the Federal Communications Commission on its claim that it has the power to regulate network neutrality, Verizon wrote in a court filing. The company was responding to an earlier filing from the FCC that claimed a recent Supreme Court case bolsters the agency's net-neutrality rules. The Supreme Court ruled last month that agencies should be given deference to interpret their own jurisdiction if a law is ambiguous. The company was responding to an earlier filing from the FCC that claimed a recent Supreme Court case bolsters the agency's network neutrality rules. The Supreme Court ruled last month that agencies should be given deference to interpret their own jurisdiction if a law is ambiguous. "The core issue in this case is whether any substantive provision of the Communications Act authorizes the FCC’s sweeping regulation of the Internet," Verizon wrote. "The agency’s inability to identify any specific authority for these rules ... is fatal."
benton.org/node/153113 | Hill, The
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BTOP HEROES
[SOURCE: National Telecommunications and Information Administration]
Sixteen projects funded through NTIA’s Broadband Technology Opportunities Program (BTOP) will be honored tonight for being selected as 2013 Computerworld Honor Laureates. In its 25th year, the Computerworld Honors Program recognizes achievements in 11 award categories. The Recovery Act-funded BTOP and State Broadband Initiative (SBI) grant recipients selected as Laureates are honored in seven of these categories: Collaboration, Economic Development, Emerging Technology, Human Services, Innovation, Mobile Access, and Philanthropy. This year, 22 judges selected 269 Laureates from more than 700 nominations, representing 29 countries. Recognition by the Computerworld Honors Program emphasizes the impact NTIA’s broadband programs are already having in communities across the country. Our award recipients are bridging the digital divide and their long-term impacts are undeniable. It is our hope that the grants will continue to empower and enable our recipients to move broadband forward through increased access to computers and broadband services.
benton.org/node/153069 | National Telecommunications and Information Administration
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SILICON VALLEY AND CYBERSECURITY
[SOURCE: Associated Press, AUTHOR: Martha Mendoza]
Chinese President Xi Jinping and American counterpart Barack Obama will talk cyber-security this week in California, but experts say the state's Silicon Valley and its signature high-tech firms should provide the front lines in the increasingly aggressive fight against overseas hackers. With China seeking to grow its economy and expand its technology base, companies like Facebook, Apple, Google and Twitter are inviting targets. In fact, all have been attacked and all point the finger at China, which has denied any role. The U.S. government has stepped up efforts to thwart cyber-attacks, but those efforts are mainly focused at protecting its own secrets, especially regarding military operations and technologies. Paul Rosenzweig, a former Department of Homeland Security official whose Red Branch Consulting provides national security advice, said the responsibility for preventing attacks in the private sector lies with the U.S. innovators who created the technology that's being hacked in the first place.
benton.org/node/153125 | Associated Press
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TELECOM
FCC AND VOICE LINK
[SOURCE: Tales of the Sausage Factory, AUTHOR: Harold Feld]
[Commentary] Federal Communication Commission (FCC) line staff are telling your average citizen who calls to ask that Verizon can refuse to repair their copper lines as long as Verizon offers Voice Link instead. “It is acceptable” for Verizon to refuse to offer copper service even if “there will be no landlines” available at all, said FCC Representative TSR54. (And no, I did not make up the designation just to make this look more like some faceless bureaucratic drone.) Did I miss the FCC Order on this? No. But the fact that FCC line staff are taking it upon themselves to say this is totally OK shows just how badly the FCC has lost control of the situation. The FCC needs to move quickly to (a) makes Verizon file the necessary application under federal law to discontinue its traditional copper service so the FCC can actually decide this question for real; and, (b) develop a process for carriers in areas where disasters have destroyed copper infrastructure to replace that infrastructure with a new product like Voice Link or voice-over-IP (VOIP). Otherwise, we can forget about having any kind of useful pilot program where we protect consumers and gather information. Carriers will take the Verizon approach, and convert natural disasters into “nature’s little laboratories.” If the FCC continues to let Verizon decide on the proper policy for itself, we can expect other carriers to stop playing by the FCC’s rules and follow in Verizon’s footsteps.
benton.org/node/153061 | Tales of the Sausage Factory
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VERIZON VOICE LINK
[SOURCE: Verizon, AUTHOR: Tom Maguire]
Recently, there has been some opining regarding Verizon New York and New Jersey’s deployment of Verizon Voice Link services to Fire Island and parts of New Jersey, where our communications network suffered devastating damage. In addition to unlimited nationwide calling, Verizon Voice Link also offers key features like Call Waiting, Call Forwarding (includes no answer/busy transfer), 3-Way Calling, Voice Mail (*86), 411, Caller ID (with Return Call *69), and Caller ID Block. More importantly Verizon Voice Link offers the same E911 capabilities as traditional wireline service. All of this is offered at a price no higher than what customers were paying for their wireline service. Sandy was a terrible tragedy. Our managers and technicians worked tirelessly and expeditiously to ensure that we restored communications capabilities to our customers in a timely and efficient manner. We will continue our efforts to provide all of our customers with superior service and the best technologies. To be clear, since the immediate aftermath of the storm, Verizon has communicated regularly with its customers, as well as local, state and federal policymakers regarding our restoration plans. We have attended many civic meetings and have installed Verizon Voice Link demonstration units for customers to try. Our decision to deploy this innovative solution has been well communicated both through these meetings as well as in the media. In addition, as part of our ongoing communications with the Federal Communications Commission, we have been working with the FCC for some time on filing the appropriate discontinuance filings and other notices for the affected services.
benton.org/node/153108 | Verizon
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CONTENT
E-BOOK TRIAL DAY 1
[SOURCE: Los Angeles Times, AUTHOR: Andrew Tangel, Chris O'Brien]
Apple and major publishers conspired in a scheme to fix prices on e-books, costing consumers hundreds of millions of dollars, a U.S. Justice Department attorney argued during the first day of a marquee antitrust trial. In April 2010, when Apple launched its online bookstore, prices jumped 50%, Justice Department lawyer Lawrence Buterman said during his opening statement for the government. "This dramatic price increase was no accident," Buterman said. "Apple knowingly and actively participated in a scheme to raise e-book prices." Apple's attorney, however, launched into a vigorous defense, saying the government was drawing "sinister inferences" from out-of-context, misquoted e-mail excerpts. Orin Snyder, said Apple merely helped bring innovation to a broken e-book market, and engaged in no conspiracy to fix prices. Consumers ultimately benefited, he said.
benton.org/node/153096 | Los Angeles Times | Washington Post | WSJ | NYTimes | us
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THINGS TO WATCH FOR AT APPLE TRIAL
[SOURCE: Washington Post, AUTHOR: Cecilia Kang]
Apple’s showdown with the Justice Department on alleged price-fixing of e-books begins June 3, in a case closely watched across media and entertainment industries grappling with their transitions to digital businesses. It is rare for a Justice antitrust suit to go to court; the five major publishing houses that were sued along with Apple have all settled with the government. The government’s suit, filed one year ago, has not significantly altered prices of e-books for consumers so far. But analysts say the case is significant because it shows federal officials are stepping up their patrol of the largely unregulated digital economy. As opening arguments take place in the no-technology Manhattan courtroom of the U.S. District Court, here are five key things to watch from the first day of trial: Witnesses, Apple on Amazon, Schedule and more witnesses, Dirty laundry and secrets, and Future.
benton.org/node/153073 | Washington Post | paidContent.org
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ADVERTISING
SOCIAL MEDIA AND ADVERTISERS
[SOURCE: New York Times, AUTHOR: Tanzina Vega, Leslie Kaufman]
As social media sites pursue advertising in a bid for new revenue, they are finding that they must simultaneously create a safe space for the advertisers they attract. With the money, they are discovering, comes responsibility. Facebook learned that the hard way last week. After failed attempts to get the social network to remove pages glorifying violence against women, feminist activists waged a digital media campaign that highlighted marketers whose ads were found alongside those pages. Nissan and several smaller advertisers temporarily removed their ads from the site. Amid mounting public pressure, Facebook acknowledged that its systems to identify and remove such content had not worked effectively and promised to improve those processes. The company began removing the pages in question. The episode underscored a conundrum for social media sites forged from the philosophy that free speech should thrive on the Internet: will they be able control content created by their users, so that advertisers are not embarrassed by material beyond their control?
benton.org/node/153105 | New York Times
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CHILDREN AND MEDIA
REVISED COPPA RULES
[SOURCE: Politico, AUTHOR: Jessica Meyers]
Tech and media companies — from Disney to small app makers — face the same dilemma as they near a July 1 deadline to bolster online privacy protections for children: getting it right. Industry advocates paint a dire scenario of costly audits, abandoned projects and disrupted business models as firms prepare for the first significant changes under the 1998 Children’s Online Privacy Protection Act since the rise of mobile technology and social networks. Privacy groups and the Federal Trade Commission, which set the new COPPA requirements, view the expanded rules as vital to protecting kids. And while few denounce that goal, the tensions underscore new complexities in an era where businesses increasingly rely on data collection and children have unparalleled access to the Internet. Affected businesses unite on one point: The shifts meant to promote kid safety could destroy that very market.
benton.org/node/153124 | Politico
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MEDIA USE SURVEY
[SOURCE: New York Times, AUTHOR: Matt Richtel]
Do parents worry about the growing amount of time their children spend with media? One new study suggests that most parents are largely unconcerned. And perhaps no wonder: Parents who show little concern about their children’s use of technology themselves spend big chunks of their leisure time with media. The study, undertaken by the Center on Media and Human Development at Northwestern University, was intended to look at how parents view technology — from television to smartphones to tablets — and how family life revolves around these devices. The study’s co-author, Vicky Rideout, an independent researcher who over the last decade has done pioneering research into patterns of technology use, said she was surprised to find that 59 percent of the 2,300 parents surveyed were not worried that their children would become addicted to technology. About 38 percent did express such a worry. But Rideout said the lack of concern among the majority of parents surveyed did not conform with what appears to be a popular sentiment, found in the media and among some researchers.
benton.org/node/153122 | New York Times
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STORIES FROM ABROAD
JORDAN BLOCKS WEBSITES
[SOURCE: New York Times, AUTHOR: Rana Sweis, Jodi Rudoren]
The Jordanian government has blocked local access to about 300 news Web sites under a new law that the sites’ editors and international journalism experts have derided as dangerous censorship aimed at quelling criticism of King Abdullah II. The law, enacted last September as the opposition to King Abdullah grew more outspoken, requires news sites in the country to register with the government, pay $1,400 in licensing fees and hire unionized journalists as editors, steps that the site operators say they cannot afford. The law also makes editors legally responsible not only for the content of articles they publish but also for comments posted by readers, many of them anonymous. Access to roughly 300 sites was blocked starting on June 2, when Jordanian news outlets were highlighting a paper issued by the king titled “Towards Democratic Empowerment and Active Citizenship.” About 80 people demonstrated in protest outside the journalists’ union on June 3, carrying signs saying, “No to the muzzling of online media.” There were plans for another demonstration outside Parliament on June 6.
benton.org/node/153091 | New York Times
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INTERNET BLOCKING IN THE UK
[SOURCE: Columbia Journalism Review, AUTHOR: Alison Langley]
Should governments block websites that spread hardline ideology but don’t explicitly advocate violence—like the ones likely read by the Tsarnaev brothers, the alleged Boston Marathon bombers, or the two men being held for allegedly attacking a British soldier in Woolrich? This is an idea that Theresa May, Britain’s home secretary, has floated in the wake of the fatal knife and machete attack earlier this month on off-duty soldier Lee Rigby, and it’s an idea under serious consideration by a task force headed by Prime Minister David Cameron. “There is no doubt that people are able to watch things through the Internet which can lead to radicalization,” May told the BBC. ”We need to see if we should be doing more; we need to see if there are additional steps we should be taking to prevent radicalization.” Her suggested remedy is a three-pronged approach: ban more organizations and Muslim schools that the government believes are inciting hate; block extremist websites, and revive the Communications Data Bill, which would which would require Internet service providers and mobile companies to keep records of every user’s browsing activities, email correspondences, and texts for 12 months.
benton.org/node/153104 | Columbia Journalism Review
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EUROPE’S PROPOSED NETWORK NEUTRALITY LAW
[SOURCE: GigaOm, AUTHOR: David Meyer]
Network neutrality advocates may not be pleased with proposed legislation from Europe’s digital chief, Neelie Kroes. She laid out her plans at a meeting on “guaranteeing competition and the open internet in Europe.” Here’s a breakdown:
One size may not fit all — Internet service providers (ISPs) should be able to offer connections with guaranteed quality of service, with regular subscribers getting a “best efforts internet”.
Transparency — People signing up to internet packages should be clearly told what is included, what is not, and what speed they can expect.
Easier switching — It must be easier to switch provider. Barriers including “excessive charges, modem hire or email addresses” will be “removed”.
No blocking/throttling — ISPs and carriers will not be able to deliberately degrade or block services that rival their own, such as VoIP or messaging services.
benton.org/node/153118 | GigaOm
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