BENTON'S COMMUNICATIONS-RELATED HEADLINES for THURSDAY, FEBRUARY 21, 2013
Privacy and Spectrum on today’s agenda http://benton.org/calendar/2013-02-21/
SPECTRUM/WIRELESS
FCC Acts to Enhance Consumers' Ability to Fill Mobile Broadband Coverage Gaps - press release
FCC orders 2 million people to power down cell phone signal boosters
FCC Acts to Significantly Increase Spectrum Available for Unlicensed Devices in the 5 GHz Band - press release
Fact-Checking the Spectrum Food Fight - op-ed
iPhone 5 and iPhone 4S each outsold the Galaxy S3 in Q4 [links to web]
4G sale falls short of forecasts by £1.2 billion
INTERNET/BROADBAND
Say it with me now. Data caps are about profits, not recovering fixed costs - analysis
Upgrading America
How Broadband Speeds Are Measured - A Teachable Moment - analysis
CYBERSECURITY
US Ups Ante for Spying on Firms
Chinese cyberspies have hacked most Washington institutions, experts say [links to web]
Congressional staff, lawmakers must beef up their cybersecurity, experts say [links to web]
Some Victims of Online Hacking Edge Into the Light [links to web]
One If By land, Two If By Sea, 10101101 If By Cyberspace
Chinese hackers first exposed in 2011 [links to web]
Hackers take aim at key U.S. infrastructure [links to web]
UNIVERSAL SERVICE REFORM
Sec Vilsack Met with FCC Chairman Genachowski on USF Reform, Broadband
NTCA: Uncertainty Drove 69% of Rural Telcos to Cancel Projects
TELEVISION
Cord-Cutting: Wishing Doesn't Make It So - analysis [links to web]
Cord-Cutting Will Be Minimal Over Five-Plus Years: PwC [links to web]
Comcast Bans Gun Ads [links to web]
OWNERSHIP
FTC's tone-deaf handling of Google - op-ed
Independent Booksellers Sue Amazon and Publishers Over E-Books
New York Times Co. Puts Boston Globe Up for Sale [links to web]
CONTENT
CREDO’s big trouble trying to post Zuckerberg/Christie protest…on Facebook [links to web]
Independent Booksellers Sue Amazon and Publishers Over E-Books
ELECTIONS AND MEDIA
How Republicans are Looking to Close the Digital Divide Against Democrats [links to web]
JOURNALISM
Publishers say paywalls, price hikes are working for newspapers [links to web]
Boston Globe’s 28,000 digital subscribers: a flop or a foothold? [links to web]
New York Times Co. Puts Boston Globe Up for Sale [links to web]
HEALTH
How to heal our smartphone-addled, overworked brains [links to web]
RESEARCH
Zuckerberg, Milner, Brin and Other Tech Titans Donate Millions to Science [links to web]
STEM Tops Education Agenda in Chicago [links to web]
STORIES FROM ABROAD
How Internet, Social Media Can Change China
4G sale falls short of forecasts by £1.2 billion
MORE ONLINE
Justices Eye Limitations on Offering Information [links to web]
State audit of California PUC destroys trust in leadership - editorial [links to web]
Universities Abroad Join Partnerships on the Web [links to web]
SPECTRUM/WIRELESS
FCC ACTS TO ENHANCE CONSUMERS’ ABILITY TO FILL MOBILE BROADBAND COVERAGE GAPS
[SOURCE: Federal Communications Commission, AUTHOR: Press release]
The Federal Communications Commission (FCC) adopted a Report and Order that furthers the goal of improving our nation’s wireless infrastructure by expanding the reach of wireless coverage for consumers. These new rules governing signal boosters – which amplify signals between wireless devices and wireless networks – will substantially improve signal booster design by requiring manufacturers to include safeguards that protect wireless networks. As a result, all four nationwide carriers, as well as many rural and regional carriers, have consented to the use of boosters on their networks, as long as those boosters meet the technical specifications outlined in the Order. The Order addresses two classes of signal boosters – consumer and industrial – with distinct regulatory requirements for each. Specifically, consumer signal boosters must meet stringent technical specifications (Network Protection Standard), and are authorized under provider licenses subject to provider consent, voluntarily provided in this case by most carriers. Consumers must register their signal booster with their provider prior to use. Labeling requirements ensure that consumers understand these terms of use. Consumer boosters can be used on most mainstream wireless bands: cellular, PCS, AWS-1, 700 MHz, and ESMR (after rebanding). The use of consumer boosters may not cause interference to wireless networks even if a device meets the Network Protection Standard. The Order also details rules for industrial signal boosters designed to cover large areas such as stadiums, airports, and tunnels. Industrial signal boosters will continue to fall under the existing authorization process, and must be installed and operated in coordination with licensees.
benton.org/node/145947 | Federal Communications Commission
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CELL PHONE SIGNAL BOOSTERS
[SOURCE: ars technica, AUTHOR: Jon Brodkin]
The Federal Communications Commission enacted a set of rules governing the sale and deployment of wireless signal boosters, devices consumers use to improve cell phone signals. More than 2 million of these devices are in use across the country, and until now consumers who bought them could just turn them on and let them work their magic. Not anymore. Anyone who buys one of these devices from now on must seek the permission of carriers. Even the 2 million devices already in use must be turned off immediately unless their owners register them. For practical purposes, there is a good chance you could keep using that device without getting any threatening legal letters. But technically, the FCC could issue fines to customers who fail to comply, said Public Knowledge Legal Director Harold Feld.
benton.org/node/146045 | Ars Technica
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FCC ACTS TO SIGNIFICANTLY INCREASE SPECTRUM AVAILABLE FOR UNLICENSED DEVICES IN THE 5 GHz BAND
[SOURCE: Federal Communications Commission, AUTHOR: Press release]
The Federal Communications Commission took the first steps to unleash significant additional spectrum to accelerate the growth and expansion of new Wi-Fi technology that can offer faster speeds of one gigabit per second or more, increase overall capacity, and reduce congestion at Wi-Fi hot spots. The FCC proposed to make up to 195 megahertz of additional spectrum in the 5 GHz band (a 35% increase) available to unlicensed wireless devices. It also proposed to create a more flexible regulatory environment, and to streamline existing rules and equipment authorization procedures for devices throughout this band. The proposed modifications would provide access to additional contiguous spectrum with consistent technical requirements, allowing unlicensed devices to use wider bandwidth channels, leading to faster speeds. Importantly, the initiation of this proceeding also carries out the course of action prescribed by the Middle Class Tax Relief and Jobs Creation Act of 2012 for expanding spectrum for unlicensed use.
benton.org/node/146022 | Federal Communications Commission
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FACT-CHECKING SPECTRUM DEBATE
[SOURCE: Wall Street Journal, AUTHOR: Mark Cooper]
[Commentary] The Federal Communications Commission has undertaken an important quest to use an incentive auction to repurpose broadcast spectrum for wireless broadband. Some in Washington oppose designating any of the recovered spectrum for unlicensed technologies. They see this process merely as a way to raise money for the U.S. Treasury, rather than focusing on the much larger and more important impact it would have on the national economy — and they believe that designating any of the recovered spectrum for unlicensed technologies, which was explicitly authorized by Congress, would reduce the auction revenue that would flow to the US Treasury. Others support an unlicensed designation and believe that a large unlicensed band will lead to “free” Wi-Fi. Unfortunately, both sides of this battle are wrong.
Those who want to auction every last hertz of spectrum overlook two basic economic facts about unlicensed spectrum:
First, if spectrum is as valuable as mobile carriers claim it is, reducing the amount of spectrum available for auction by dedicating some of it for unlicensed use should drive up the price of the remaining auctioned spectrum.
Second, unlicensed spectrum is the most valuable part of the wireless broadband product space by a wide margin.
Those who think that more unlicensed spectrum will lead to “free” Wi-Fi also overlook basic economic realities. Even though unlicensed spectrum is very good for consumers and the economy, it is important to recognize that not paying money at auction to gain access to unlicensed spectrum does not mean that it is free to put it to use. Quite the opposite is true.
[Cooper is the Director of Research at the Consumer Federation of America and a fellow at the Donald McGannon Center for Communications Research at Fordham University]
benton.org/node/146047 | Wall Street Journal
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INTERNET/BROADBAND
DATA CAPS
[SOURCE: GigaOm, AUTHOR: Stacey Higginbotham]
[Commentary] There are lies, damned lies, and the arguments the cable industry makes about broadband caps. As more Internet service providers cap their broadband service, more questions are raised about the practice, which has put cable providers on the defensive. I’m not actually against the 95 percent profit margins or even caps if the market for broadband were competitive. Unfortunately, when more than three-quarters of American homes have the choice between only two providers it’s clear that competition for the basic broadband service is limited. And when you look at how competitive the services are based on speeds there are big differences. For example, AT&T U-Verse tops out at 24 Mbps on the download side while cable tops out at 50 Mbps or even 100 Mbps. But as someone who has documented legitimate questions about caps; their size, their spread, their rationale and their effect on innovation, I’m hoping that more and more consumers, lawmakers and regulators wake up to the fact that these caps aren’t necessary and that they pose a tax on innovation.
benton.org/node/145948 | GigaOm
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UPGRADING AMERICA
[SOURCE: Gig.U, AUTHOR: ]
Gig.U The University Community Next Generation Innovation Project began a year and a half ago as a collaboration of research university communities to accelerate the deployment of next-generation networks. The problem we anticipated – of market forces focusing on harvesting last generation investments instead of driving new investments into world-leading fixed networks – has proven accurate. The idea of a consortium of communities working to change the math to catalyze new investment was untested and, in ways, at odds with the more traditional pattern of provider-driven, federally-supported efforts to upgrade or build new networks. It is clear that the experiment is bearing fruit.
benton.org/node/145946 | Gig.U
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VERIZON ON BROADBAND
[SOURCE: Verizon, AUTHOR: Link Hoewing]
[Commentary] Three weeks ago, Akamai released their State of the Internet report with findings from Q3 of 2012. The quarterly report typically includes a list of average speed measurements for different countries around the world. Some commentators have suggested that these figures indicate serious competitive problems with the U. S. broadband marketplace, but things are not necessarily as dire as critics would think. It’s important to understand what the Akamai report – and others that compare speeds among nations – actually measures. While many of these tests provide interesting and useful data – and can clue us in to how broadband markets are performing over time - they do not provide the kind of consistent and calibrated measurements that make direct comparisons among countries possible. Although speed tests can be a useful tool for assessing some aspects of network performance, measurement methodologies vary significantly. This is why the average speeds measured for the U. S. by Akamai (7.2 Mbps), Ookla’s Speedtest.net (15.91 Mbps), YouTube (8.09 Mbps) and the FCC rankings (15.6 Mbps) show large discrepancies. Akamai itself offers a disclaimer in an FCC filing that makes it clear the report does not purport to measure local access speeds, nor do its measurements “conform to the reporting categories of the FCC’s Form 477 (e.g. speed tiers).” Drawing conclusions about how nations compare with regard to broadband access services from tests that do not actually measure access speeds is not advisable. Very few broadband speed tests provide a technically sound basis for making such comparisons. Broadband speeds have seemingly become the sole focus in the debate over U.S. broadband and Internet policy. As such, it’s important to understand what the various studies are measuring in this regard and how they should be interpreted. Bad or even misconstrued data leads to bad policy, and considering the huge role broadband will play in manufacturing, health care, energy management, education, and nearly every other sector of the economy, policy makers cannot afford to get this one wrong. Using a multi-stakeholder approach to test modeling and data gathering, as the FCC/Sam Knows test does, provides the best data from which to craft fair and effective broadband policy.
benton.org/node/145930 | Verizon
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CYBERSECURITY
RESPONSE TO CYBERTHREATS
[SOURCE: Wall Street Journal, AUTHOR: Siobhan Gorman, Jared Favole]
The White House threatened China and other countries with trade and diplomatic action over corporate espionage as it cataloged more than a dozen cases of cyberattacks and commercial thefts at some of the U.S.'s biggest companies. Top administration officials painted a pervasive portrait of the far-reaching costs of espionage—competitive disadvantages, job losses, product impacts. The administration's strategy will bring together officials from across the government. New measures raise the prospect of stepped-up U.S. trade restrictions on products and services derived from stolen trade secrets and diplomatic pressure to reinforce the administration's commitment to curbing such thefts. The new strategy is aimed at producing a change in Beijing, which has repeatedly denied it sponsors such incursions. The Obama Administration is casting trade-secret theft as a major threat to both economic and national security.
benton.org/node/146051 | Wall Street Journal | Los Angeles Times | The Hill | Financial Times
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ONE IF BY LAND, TWO IF BY SEA, 10101101 IF BY CYBERSPACE
[SOURCE: National Journal, AUTHOR: Brian Fung]
Until very recently, America’s battles have all been waged somewhere in physical space—on land, in the air, on water or in outer space. Many of these domains come along with inherent features that make life harder or easier in battle. Americans are quickly learning now about a fifth domain: cyberspace. In some ways, this battlespace is the same as the others. It’s an arena where countries are competing with one another for political or economic advantage. But it’s also different in some fundamental ways. And how the world decides to use this space will go a long way toward determining how disruptive -- or destructive -- war in this domain will become. Michael Hayden, the former CIA director under President George W. Bush, believes the United States has a lead role to play in setting up man-made institutions to shape state behavior. Unlike air, sea or land, Hayden told an audience at George Washington University Tuesday, cyberspace “is almost defenseless. There are no natural barriers up here in this domain.” There are a few ways to solve this problem. One is to make some cyber activities prohibitively costly. A more significant step would be for Americans to decide how they want to be protected in cyberspace. It’s a more complicated problem than today’s debates over information-sharing and privacy currently capture.
benton.org/node/146008 | National Journal
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UNIVERSAL SERVICE REFORM
USDA-FCC MEETING
[SOURCE: Department of Agriculture, AUTHOR: John Charles Padalino]
On February 8, Agriculture Secretary Thomas Vilsack met with Federal Communications Commission Chairman Julius Genachowski to share recommendations on sustainable rural broadband deployment under the FCC’s Universal Service Fund Transformation Order. The recommendations include:
Accelerate broadband deployment in rural areas by establishing a separate Connect America Fund for rural rate of Return Carriers and modifying the existing universal service support to increase broadband investment and adoption among consumers of rural rate of return carriers.
Combine the unused incremental support under CAF Phase 1, Round 1 with the second round of 2013 CAC Phase 1 funds for support and distribution to rural price capped carriers.
Adjust Regression Analysis-based caps to correct the structural and data integrity concerns of rural carriers and apply the caps incrementally. Provide RUS with confidential access to the regression model to assist USDA in managing its lending programs.
Defer adoption of the Further Notice of proposed Rulemaking that proposed additional caps and cost constraints on rural carriers until the impact of the existing caps are fully implemented and integrated into rural carrier business plans.
Modify and expand the waiver process to support the maintenance or extension of broadband service in rural areas and the repayment of debt incurred prior to the Order.
benton.org/node/146005 | Department of Agriculture
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USF REFORM AND NETWORK UPGRADES
[SOURCE: telecompetitor, AUTHOR: Joan Engebretson]
More than two-thirds (69%) of small telephone companies have postponed or canceled plans to upgrade their landline communications networks because of uncertainty about Universal Service and inter-carrier compensation reform, according to data released by rural broadband association NTCA. The lobbying organization estimates the total value of canceled projects at $492.7 million based on data collected last month via a survey sent to NTCA member companies. A total of 185 companies responded – or 34% of the 538 unique e-mail addresses in NTCA’s membership e-mail database. Of those who said they had canceled or postponed projects, 62% said they had postponed projects, 18% said they had canceled projects and 11% said they had postponed and canceled projects.
benton.org/node/146004 | telecompetitor
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OWNERSHIP
THE FTC AND GOOGLE
[SOURCE: Politico, AUTHOR: Gary Reback]
[Commentary] The fallout from the Federal Trade Commission’s ill-conceived settlement with Google over that company’s controversial Internet search practices continues to generate headlines. Many in the technology community have questioned in the press the thoroughness and sophistication of the FTC investigation. These critics argue that the structure and scope of the investigation predetermined an exoneration of Google. Over the years, we in Silicon Valley have come to understand that different government agencies have different degrees of technical sophistication. The FTC needs to return jurisdiction over Google’s conduct to the Antitrust Division of the Department of Justice, an agency with an experienced group of technology-literate lawyers. Permitting the FTC to retain oversight of Google’s behavior amounts to a fraud on the public that will quickly and irreversibly damage the nation’s technology sector.
[Gary Reback is a Silicon Valley antitrust lawyer who helped spearhead the efforts that led to the U. S. government’s successful lawsuit against Microsoft]
benton.org/node/145933 | Politico
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E-BOOK SUIT
[SOURCE: New York Times, AUTHOR: Leslie Kaufman]
Three independent, brick-and-mortar bookstores have filed a lawsuit against Amazon and the big six publishers, claiming that they are violating antitrust laws by collaborating to keep small sellers out of the e-book market. In a lawsuit filed in Federal District Court for the Southern District of New York, the Book House of Stuyvesant Plaza and Posman Books, both based in New York, and Fiction Addiction, based in South Carolina, alleged that they and other small bookstores were being deliberately forced out of the digital market as a result of agreements between the big publishers and Amazon. At the heart of the lawsuit is the idea that the top publishers signed secret contracts with Amazon that allowed them to code their e-books in such a way that the books could only be read on an Amazon Kindle device or a device with a Kindle app. The booksellers are pushing for open-source coding that would allow readers to buy e-books from any source and download them on any device. They argue that the proprietary coding compels consumers who own Kindles or tablets with Kindle apps to buy e-books only from Amazon. The lawsuit states that the publishers have no similar contracts with independent booksellers. It also notes that Apple once used similar exclusive coding, known as DRM, in the music business, but that after a series of legal challenges, all music available on iTunes was made DRM-free.
benton.org/node/146043 | New York Times
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STORIES FROM ABROAD
SOCIAL MEDIA AND CHINA
[SOURCE: Wall Street Journal, AUTHOR: Juro Osawa]
Social media sites are giving China’s millions of Internet users a channel to express themselves and could open the door to “unstoppable” transformation in the country, says Tudou’s Gary Wang. “Younger generations are getting a taste for being able to express themselves,” said Wang. “It will be very difficult to put that into a cage. I’m optimistic that this will be unstoppable.” Smartphones have hastened the adoption of social media tools, such as Sina’s Twitter-like weibo service, among China’s 500-million-plus Internet users.
benton.org/node/145936 | Wall Street Journal
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UK 4G SPECTRUM AUCTION RESULTS
[SOURCE: Financial Times, AUTHOR: Daniel Thomas]
Just £2.3 billion has been raised from the sale of UK airwaves needed to carry superfast 4G mobile services – much less than the £3.5 billion estimated proceeds that had been factored into the government’s accounts for this year. A fiercely contested auction among Britain’s leading mobile operators failed to ignite prices for the spectrum that can be used to carry 4G services, which are several times faster than existing 3G signals. The £2.3 billion raised by selling spectrum to five groups – Vodafone, EE, O2, 3 and BT – falls at the lower end of analysts’ estimates and is only a 10th of the £22.5 billion raised through the auction of 3G bandwidth at the height of the dotcom boom in 2000. The end of the auction means that full superfast mobile services will finally be launched in Britain after a five-year wait, but there will still be questions asked of the Treasury.
benton.org/node/146032 | Financial Times | FT - deficit pledge | FT – don’t blame Ofcom
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