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In a new report, the Commerce Department’s National Telecommunications and Information Administration and the Economics and Statistics Administration (ESA) delve deeper into the differences between broadband availability in rural and urban areas.

This latest report is part of a series from NTIA that examines broadband availability data in greater detail. One key finding of the new report suggests that, in many cases, the closer a community lies to a central city, the more likely it is to have access to broadband at higher speeds. This is significant because some lower-density communities are located closer to the central city of a metropolitan area and have more access to faster broadband speeds than higher- density communities that are more distant from a central city. The report shows that in 2011, 76 percent of residents in exurbs, which generally ring suburbs, had access to basic wireline broadband, defined as advertised speeds of 3 Mbps download and 768 kbps upload. In contrast, 65 percent of very rural residents, who live outside of metropolitan areas, had basic wired service. This disparity between exurban and very rural areas is even greater when it comes to access to much faster broadband service of at least 25 Mpbs. Only 18 percent of very rural residents had access to broadband at this speed compared to nearly 38 percent of exurban residents. There are also significant gaps between exurbs and very rural areas when it comes to access to wireless broadband. The report also found even among urban areas – central cities, suburbs and small towns - the closer communities were closer to central cities, the more likely they were to have access to faster broadband.


Breaking Down the Urban-Rural Broadband Divide Broadband Availability Beyond the Rural/Urban Divide (read the report) NTIA: There Are Rural/Urban Broadband Subdivides (Multichannel News)
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Worldwide spending for entertainment is expected to steadily rise over the next five years as consumers increasingly use smartphones and tablets and as Brazil, China and India further develop into vibrant media markets.

Consulting firm PricewaterhouseCoopers has predicted that global spending for media and entertainment will reach $2.2 trillion in 2017, compared with $1.6 trillion in 2012. The U.S. is expected to remain the largest media market, with spending increasing 4.8% annually to reach $632 billion in 2017, up from the nearly $500 billion spent last year. Digital media — fueled by the expansion in ownership of smart devices — is expected to account for 43% of all media spending in the U.S. by 2017. That's up from 31% of the total in 2012. Latin America is expected to become the fastest-growing region over the next five years, with 10.6% annual spending growth. Asia Pacific countries are expected to notch annual growth of 6.5%.


Global spending for media and entertainment to rise steadily What digital media will look like in 2017 – highlights from PwC’s report (paidContent.org)

A majority of Americans now own a smartphone of some kind. Our definition of a smartphone owner includes anyone who says “yes” to one—or both—of the following questions:

  • 55% of cell phone owners say that their phone is a smartphone.
  • 58% of cell phone owners say that their phone operates on a smartphone platform common to the U.S. market.
  • Taken together, 61% of cell owners said yes to at least one of these questions and are classified as smartphone owners. Because 91% of the adult population now owns some kind of cell phone, that means that 56% of all American adults are now smartphone adopters. One third (35%) have some other kind of cell phone that is not a smartphone, and the remaining 9% of Americans do not own a cell phone at all.

Smartphone Ownership 2013
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Nine out of every thousand smartphones in the U.S. likely have annoying or dangerous ad software installed on the device, according to an analysis by mobile security provider Lookout.

The company said its report is the first one to break down the existence of malicious software in phones by country. “The key takeaway for average users is that while their chances of encountering a mobile threat are relatively low, they can protect themselves by understanding what types of threats are more prevalent in their area,” said Jeremy Linden, Lookout's security product manager. About 56% of American adults own a smartphone, according to a Pew Research survey. Their biggest security worry is the advertising software, or adware, that sometimes comes bundled in apps such as games. It often contributes to poor battery life and might lead to strange pop-ups, toolbars or icons. Linden said adware is commonplace in the Google Play store.


Adware is biggest threat to smartphone security in U.S., report says
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A Q&A with former Federal Communications Commission Chairman Julius Genachowski.

On network neutrality, he says, “One of the things that came out of the intense and loud public debate that we had in 2009 and 2010 was that we won the proposition that people have a right to send and receive information on the internet. We won another debate, which is that the government has a role in enforcing that right. That was also a controversial proposition. But by the end of the day, when we put the framework in place, it was supported by a very broad array of stakeholders including the bulk of companies both on the internet side and on the network side. I think people get it now, and I think more importantly, the business and social norms around internet openness are settling into the cement of the industry. The most important thing for people to understand is that the basic rule that people have a right to send information over the internet — even when they are using a wireless device — is part of the framework. If a carrier blocks a consumer's access to the internet, they are violating our rules.”


Former FCC Chairman Julius Genachowski: 'people have the right to send and receive information over the internet, period'
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Recent speeches by Acting Federal Communications Commission Chairwoman Clyburn and Commissioners Rosenworcel and Pai revealed emerging consensus on some policy issues and the promise of continuing FCC leadership under Acting Chairwoman Clyburn’s guidance. We wholeheartedly agree that, given the complexities inherent in the upcoming spectrum auctions, collaboration and compromise, where it can be reached, is most likely to produce the most effective results.


Collaboration and Compromise

The Privacy and Civil Liberties Oversight Board is issuing this rule to provide information to the public about the Board’s organization, function, and operations.

The Privacy and Civil Liberties Oversight Board (Board) was created as an independent agency within the executive branch by the Implementing Recommendations of the 9/11 Commission Act of 2007. It has two primary purposes: (1) To analyze and review actions the executive branch takes to protect the United States from terrorism, ensuring that the need for such actions is balanced with the need to protect privacy and civil liberties; and (2) to ensure that liberty concerns are appropriately considered in the development and implementation of laws, regulations, and policies related to efforts to protect the Nation against terrorism.


Privacy and Civil Liberties Oversight Board Organization and Delegation of Powers and Duties
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Liberty Media chairman John Malone lauded the cable industry's strength in broadband subscriptions and hinted at the possible introduction of cable broadband usage tiers, which would affect Netflix. Plus, he also commented on Dish Network chairman Charlie Ergen's latest deals and his "kamikaze" approach to business.

Asked about Netflix, Malone said it "has done a wonderful job" of showing people's appetite for content from nontraditional providers. But he also predicted that in the future, cable operators could offer "various tiers of connectivity," possibly with built-in video offerings or bundles. Netflix CEO Reed Hastings will in that scenario have to keep in mind some of the cost of broadband capacity "that he is burning," Malone said.


Liberty Media's John Malone Touts Charter Stake, Cable Power
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If you live in one of the nearly 25 states that charge sales tax on digital goods or services you likely pay more for everything from downloaded music, e-books and ringtones to streaming TV shows and video. And a growing number of states are finding ways to tax our digital diversions.

While some states rely on existing sales tax laws, more than a dozen have enacted sales tax laws specifically targeting digital goods. As consumers switch to digital music, books and movies, many states discovered that they were losing out on valuable sales tax revenue and decided to do something about it, said Michael Mazerov, a senior fellow at the Center on Budget and Policy Priorities, a nonprofit think tank. E-book sales, for example, rose 44% to $3.04 billion in 2012, according to the Association of American Publishers and the Book Industry Study Group. Meanwhile, digital music sales, were up 9.1%, with digital transactions making up a record 37% of all album purchases, according to Nielsen.


Are you paying the iTunes tax?
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FreedomPop will expand its free wireless data offering to include free voice beginning in late summer.

FreedomPop CEO Stephen Stokols said the company initially launched free wireless data in order to “nail the business model.” As Stokols explained, that model offers sufficient free monthly data usage to satisfy a large percentage of customers – 500 megabytes. The new voice offering, which will also include 200 free voice minutes per month and unlimited texting, is based on the same principle, he said. Customers who want more voice minutes or a larger data allotment will be able to purchase a premium service. Pricing has not yet been determined, but Stokols said the plan is for it to be in the range of $10 to $15 per month for a service that would cost around $80 from a traditional wireless carrier. FreedomPop does not operate its own wireless network but instead leases connectivity from Sprint and Clearwire. The FreedomPop voice service will be based on VoIP.


FreedomPop to Offer Smartphones for Free Wireless Voice & Data Service