May 2014

The Death of the Federal Snow Day?

Mobile work is dramatically changing the federal workplace -- effectively moving some federal offices from a place where employees go to work to a place where they go to share ideas.

That was the theme of Mobile Work Exchange’s spring Town Hall Meeting in April, where the General Services Administration and other agencies talked about a workplace transformation that brings together concepts like telework, human resources, facilities management and information technology to improve employee engagement and collaboration and also reduce agency spending in areas such as real estate.

For GSA, which in early 2014 unveiled its 1800 F headquarters building that features open, collaborative workspace, the total workplace transformation has not only positioned the agency as a more appealing place to work among young employee recruits, it also has led to the death of the federal snow day, said GSA Administrator Dan Tangherlini.

Findings of the Big Data and Privacy Working Group Review

In January, President Barack Obama asked me to lead a wide-ranging review of "big data" and privacy -- to explore how these technologies are changing our economy, our government, and our society, and to consider their implications for our personal privacy. Together with Secretary of Commerce Penny Pritzker, Secretary of Energy Ernest Moniz, the President's Science Advisor John Holdren, the President's Economic Advisor Jeff Zients, and other senior officials, our review sought to understand what is genuinely new and different about big data and to consider how best to encourage the potential of these technologies while minimizing risks to privacy and core American values.

On May 1, we presented our findings to the President. We knew better than to try to answer every question about big data in three months. But we are able to draw important conclusions and make concrete recommendations for Administration attention and policy development in a few key areas.

Our review raised the question of whether the "notice and consent" framework, in which a user grants permission for a service to collect and use information about them, still allows us to meaningfully control our privacy as data about us is increasingly used and reused in ways that could not have been anticipated when it was collected. Big data raises other concerns, as well.

One significant finding of our review was the potential for big data analytics to lead to discriminatory outcomes and to circumvent longstanding civil rights protections in housing, employment, credit, and the consumer marketplace.

We make six actionable policy recommendations in our report to the President: 1) Advance the Consumer Privacy Bill of Rights, 2) Pass National Data Breach Legislation, 3) Extend Privacy Protections to non-U.S. Persons, 4) Ensure Data Collected on Students in School is used for Educational Purposes, 5) Expand Technical Expertise to Stop Discrimination, and 6) Amend the Electronic Communications Privacy Act.

[Podesta is a Counselor to the President]

T-Mobile CFO Says Merger Could Help Put Un-Carrier Approach “On Steroids”

T-Mobile is trying to walk a fine line as it touts the gains it is making as an independent company while still arguing that further consolidation would benefit consumers.

T-Mobile Chief Financial Officer Braxton Carter and marketing chief Mike Sievert said that a potential combination with Sprint or another entity would allow the company to take its “un-carrier” approach to more consumers.

“We believe this is a scale industry,” Sievert said. “It would allow a disruptive player to become even more disruptive.”

Carter said it would be kind of like putting the un-carrier “on steroids.” Regulators in Washington, though, seem opposed to a Sprint-T-Mobile deal, although Sprint and SoftBank have been making the rounds in DC trying to put forward their case for why it could be a good thing.

Justice Department Requires eBay to End Anticompetitive “No Poach” Hiring Agreements

The Department of Justice has reached a settlement with eBay that prevents the company from entering into or maintaining agreements with other companies restraining employee recruitment and hiring.

The department’s Antitrust Division filed the proposed settlement in the US District Court for the Northern District of California in San Jose. If approved by the court, the settlement would resolve the department’s competitive concerns and the original lawsuit filed on Nov 16, 2012.

In its lawsuit, the department alleged that senior executives and directors of eBay and Intuit entered into an agreement, beginning no later than 2006, that prevented each firm from recruiting employees from the other and that prohibited eBay from hiring Intuit employees that approached eBay.

The agreement between eBay and Intuit diminished important competition between the firms to attract highly skilled technical and other employees to the detriment of affected employees who had less access to better job opportunities and higher pay. The proposed settlement would prohibit eBay from entering or maintaining anticompetitive agreements relating to employee hiring and retention for five years.

Cable's Wi-Fi ambitions are about much more than customer retention

Although members of the CableWiFi Alliance have said repeatedly that the primary incentive behind their growing Wi-Fi hotspot portfolio (which now stands at 250,000 nationwide) is to complement their customers' broadband service in the home and differentiate themselves from their telecommunications competitors, there are signs that a bigger agenda is afloat.

At the recent Cable Show, Wi-Fi was part of nearly every discussion. NCTA Chairman Michael Powell positioned the cable industry's Wi-Fi footprint as a competitor to wireless carriers when he spoke with Federal Communications Commission Chairman Tom Wheeler. And Chairman Wheeler agreed, noting: "Wi-Fi offers new opportunities in broadband and high speed data as well as voice service."

Likewise, Comcast Chairman and CEO Brian Roberts claimed that his company is the "biggest wireless provider in the country already," and said that the convergence of Wi-Fi with the cable network is a powerful tool that will be very important in the future. "It distinguishes us from the competitors and gives us a better business," he said.

Cable operators have invested a lot of time and money into growing their Wi-Fi networks. It's only a matter of time before they come up with a way to monetize this important asset.

ISPs Shouldn’t Be Able To Pick Winners and Losers

[Commentary] There are a few reasons why the Federal Communications Commission’s Open Internet proposal doesn’t quite go far enough in creating strong network neutrality rules.

I’d like to concentrate on one in particular. The FCC’s proposal invites Internet Service Providers to choose winners and losers online. Even though the proposal explicitly says that ISPs will not be able to block or discriminate against websites, the commercial reasonableness standard within the new proposal leads one to believe otherwise.

The baseline concept of network neutrality prevents discrimination and traffic bias. But the concept of commercial reasonableness is steeped in discrimination and bias.

It’s very difficult to see how this standard, which inherently offers less protection than the previous Open Internet Rules, can serve the same policy goals. And from a competitive standpoint, there are a slew of reasons that large ISPs have to avoid partnerships with their competitors. Point blank, the new proposal offers less protection than the previous Open Internet Rules.

Additionally, the FCC’s call to approach discrimination on a case-by-case basis creates uncertainty, and disadvantages small businesses and entrepreneurs.

[Cox is the director of media relations at Public Knowledge]

Silicon Valley heading toward another tech bubble, some investors say

Venture capital rising to levels not seen since 2001. Companies with no profits going public. Billions of dollars being paid for start-ups.

These and other signs that the tech boom may be taking an irrational turn are leading some notable investors to utter the dreaded word "bubble," waking up the ghosts of an era many in Silicon Valley would prefer to keep buried.

Viacom buys Britain's Channel 5 Broadcasting for $760 million

Media company Viacom has significantly expanded its international footprint by buying television outlet Channel 5 Broadcasting in Britain.

Viacom -- which owns cable channels MTV, Nickelodeon and Comedy Central -- said it has agreed to pay nearly $760 million to British press baron Richard Desmond for the over-the-air channel.

Several other US media companies had been interested in Channel 5, which launched in 1997 as Britain's fifth public broadcasting service. The channel notches more than 42 million viewers a month.

“The acquisition of Channel 5 accelerates Viacom’s strategy in the UK, one of the world’s most important and valuable media markets,” Viacom Chief Executive Philippe Dauman said in a statement announcing the move. "We believe we will be able to invest in even more programming for Channel 5," Dauman told analysts. He said Viacom would pay cash for the channel.

The FCC's Flimsy Defense of Fake Net Neutrality

[Commentary] Federal Communications Commission Chairman Tom Wheeler wants you to calm down.

In a blog post on the FCC website, he claimed that the many critics of his plan are "misinformed." Does that mean that it's time for network neutrality fans to put down their pitchforks? Hell, no. It's time to get even louder.

Try as he might to convince people that he's on the right course, Chairman Wheeler doesn't seem to grasp one basic problem: Encouraging online discrimination in the name of the open Internet is unacceptable. Yet that's exactly what his plan would do: allow Internet service providers to charge new fees to content companies for preferential treatment.

If the chairman truly wants to do right by the Internet and avoid losing another costly court battle, reclassifying broadband is the only viable option. If Chairman Wheeler doesn't reclassify and continues down the wrong path, either the rules will be struck down when the FCC acts or, more likely, they'll never be enforced. And under the convoluted approach he's proposed, future FCC chairs who think differently than Chairman Wheeler does will be under zero obligation to take action.

Reclassification is the approach on the strongest legal footing. Reclassifying broadband is also the only approach that puts the needs of Internet users first. Innovators need the certainty that comes with common carriage, not Chairman Wheeler's "just trust me" approach to stopping harmful behavior by AT&T, Comcast or Verizon.

[Aaron is President and CEO, Free Press]

New campaign calls out President Obama for network neutrality campaign pledge

As the Federal Communications Commission considers allowing Internet “fast lanes,” the Progressive Change Campaign Committee is looking to hold President Barack Obama accountable to the commitment he made to an online “level playing field” during his 2008 campaign.

The campaign’s site hosts a video from a 2007 campaign event where then-Sen Obama described himself as “a strong supporter of net neutrality.” Internet providers should not “charge different rates to different websites,” because that “destroys one of the best things about the Internet, which is there’s this incredible equality there” he said.

Companies like Google and Facebook “might not have been started if you had not had a level playing field for whoever’s got the best idea, and I want to maintain that basic principle in how the Internet functions,” he said. As President, he said, he would “make sure that that’s the principle that my FCC commissioners are applying as we move forward.”

oe Niederberger, who posed the net neutrality question to Obama in 2007 and is now behind NoSlowLane.com, criticized the Obama Administration for the current plan to allow Internet “fast lanes.” “The new FCC chair should carry out the president’s promise and support net neutrality,” he said in a video on the site.