March 2014

CBO Scores Federal Spectrum Incentive Act

The Federal Spectrum Incentive Act (HR 3674) would modify existing law regarding the management of the electromagnetic spectrum used by federal agencies. It would increase the amounts authorized to be spent, without further appropriation, to reimburse agencies that incur expenses when spectrum is reallocated from federal to commercial use. The bill also would authorize the use of alternative forms of compensation for agencies affected by spectrum reallocation efforts.

CBO estimates that enacting HR 3674 would increase net direct spending by $30 million over the 2015-2024 period; therefore, pay-as-you-go procedures apply to the bill. In addition, CBO estimates that implementing the bill would lower discretionary spending by $8 million over the 2015-2019 period, assuming appropriations are reduced by the necessary amounts. Enacting this bill would not affect revenues. HR 3674 contains no intergovernmental or private-sector mandates as defined in the Unfunded Mandates Reform Act (UMRA) and would not affect the budgets of state, local, or tribal governments.

Consortium Wants Standards for ‘Internet of Things’

A consortium of industrial giants -- including AT&T, Cisco, General Electric, IBM and Intel -- said that they would cooperate to create engineering standards to connect objects, sensors and large computing systems in some of the world’s largest industrial assets, like oil refineries, factories or harbors. The White House and other United States governmental entities were also involved in the creation of the group, which is expected to enroll other large American and foreign businesses.

“I don’t think anything this big has been tried before” in terms of sweeping industrial cooperation, said William Ruh, vice president of GE’s global software center. “This is how we will make machines, people and data work together.” The group, called the Industrial Internet Consortium, hopes to establish common ways that machines share information and move data. Creating standards for things like the electricity levels within small machines, or the kinds of radio technology a railroad might use to signal track conditions, can increase the size of the potential market and speed product development.

Cash, Paranoia Fuel Tech Giants' Buying Binge

From messaging to watches and thermostats, Facebook and Google, along with Amazon and Apple, each want to own the digital platform where people communicate, shop and seek entertainment. The competition is driven by their ability to pay -- their combined market capitalization exceeds $1 trillion -- and long memories of faded tech stars that didn't evolve quickly enough.

This combination of fear and primal ambition is leading to one of the biggest buying and investing sprees since the dot-com era of the late 1990s. Facebook and Google, in particular, have enjoyed wide latitude to make big investments, thanks to their booming stock price and their founders' supervoting shares. The four companies are competing to control as much as possible of the tech ecosystem. In Silicon Valley parlance, it's all about controlling "the platform." A big reason is to gather data about users, to serve them ads or to anticipate their next purchase.

Turkey Blocks YouTube

Turkey's telecommunications authority blocked Google's video sharing website YouTube, exactly a week after preventing people from accessing Twitter, in a move likely to intensify domestic and international criticism just three days ahead of critical local elections. The move came just hours after a leaked recording published on YouTube purporting to show a conversation where Turkey's foreign minister, spy chief and a top general appear to discuss scenarios which could lead to a Turkish attack against Jihadist militants in Syria. The block was announced on the telecommunications authority's website, which said it had taken an "administrative measure" against the site "after technical analysis and legal consideration."

Top EU Court Backs Internet Bootlegging Ruling

The European Union's highest court said that Internet service providers may have to block access to websites that infringe copyrights. The ruling, which confirms an opinion last year from the European Court of Justice's advocate general, could raise costs for Internet service providers in the 28-country EU, but leaves leeway for national courts to decide on the best course of action to fight copyright violations.

The ECJ had been asked to give its interpretation of the bloc's copyrights law by Austria's highest court. That court is hearing a case between Austrian Internet provider UPC Telekabel Wien GmbH on the one side and two movie companies, Germany's Constantin Film Verleih GmbH and Austria's Wega-Filmproduktionsgesellschaft mbH, on the other.

Charting the years-long decline of local news reporting

Local news has become a tough sell, especially online. It’s not that people aren’t interested in their communities -- local news usually ranks as the top priority in surveys -- it’s that the economics of the digital age work strongly against reporting about schools, cops and the folks down the street. In drawing readers and viewers from a relatively small pond, local news outlets struggle to attract enough traffic to generate ad dollars sufficient to support the cost of gathering the news in the first place. Conversely, sites that report and comment on national and international events draw from a worldwide audience, making it relatively easier to aggregate a large audience and the ad dollars that come with it. One result: A steady, years-long decline in local-news reporting, as newspapers -- the largest source of local news -- have gradually cut back their reporting staffs. A second upshot: The biggest investments in digital news have gone toward start-up ventures that target broad and borderless audiences, bypassing community news altogether.

Judge tosses lawsuit against Facebook over use of minors' photos

US District Judge Richard Seeborg has dismissed a proposed class action lawsuit against Facebook that had accused the company of misappropriating the names and likenesses of minors who use the social network. At issue was Facebook's use of minors' names and photos in targeted advertising in a case that highlighted privacy concerns. The lawsuit, originally filed in Illinois in 2011, had sought to represent all minors that used Facebook and had their names used in an ad. Judge Seeborg ruled that the minors gave their consent when they signed up for Facebook under a "statement of rights and responsibilities" that governs the site.

FCC Chairman Wheeler at Hearing on the FCC's Fiscal 2015 Budget Request

The Federal Communications Commission has raised more than $53 billion for the Treasury in auctions revenues since 1994 – $1.56 billion of that just last month. We are on course to raise billions more in the next few years to fund, among other things, the deployment of an interoperable broadband network for our nation’s first responders, as well as to reduce the deficit. The Commission supports an industry that is essential to our nation’s economy and stimulates ever-higher levels of financial growth. We have repurposed and re-engineered significant amounts of spectrum to fuel these industries -- including spectrum that would have been considered almost useless barely a decade ago. During the past three years, the Commission has reformed the Universal Service Fund (USF) -- a massive undertaking designed to take this 20th Century program into the next decades of the 21st Century -- and now we are building on that reform with a sharpened enforcement focus. The Commission’s activities are entirely funded by those it regulates. In other words, there is a zero relationship between Commission expenditures and the federal deficit. We have no direct appropriation, and we work hard to raise funds to put money back into the Treasury. In fact, the industries that we regulate contributed $17 million to sequestration since that money was derived from their licensing fees. Auctions revenues cover auctions costs, and the USF funds cover USF program costs.

FCC Commissioner Pai at Hearing on the FCC's Fiscal 2015 Budget Request

Federal Communications Commission member Ajit Pai shared his views on several important issues that the FCC is confronting, namely: freeing up spectrum for commercial use, reforming the Universal Service Fund’s high-cost and E-Rate programs, removing regulatory barriers to infrastructure investment, adjusting our rules to the changing media marketplace, ensuring Americans can always reach help when they dial 911, and reforming the agency’s processes.

GOP Senators To FCC: Don't Change JSAs Outside Quadrennial Review

The National Association of Broadcasters is collecting support for its pushback on an Federal Communications Commission proposal to make TV joint sales agreements above 15% of a station's ad time attributable as ownership interest in that station. The latest comes from six Republican senators who have written FCC Chairman Tom Wheeler to say they are "deeply concerned" that the move, which Wheeler plans to vote on at the March 31 meeting, comes before the FCC wraps up its 2010 quadrennial ownership review and before it has launched its 2014 review. Wheeler plans to launch a combined 2010/2014 review at that same March 31 meeting.

Signing the letter were Sens. Timothy Scott (R-SC), Roger Wicker (R-MS), Roy Blunt (R-MO), Ron Johnson (R-WI), Dan Coats (R-IN) and Pat Toomey (R-PA).