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[Commentary] On July 11, 1934, Eugene O. Sykes became the first chairman of the Federal Communications Commission. He held the post until March 8, 1935 when Anning S. Prall rose to be chair. Since then, each succeeding FCC chair has been a man – that is, until May 20, 2013, when Mignon Clyburn became the Acting Chairwoman of the commission. Chairwoman Clyburn becomes the third FCC chair of the Obama presidency after Acting Chairman Michael Copps and Julius Genachowski. The “glass ceiling” is a concept that betrays America’s most cherished principles. It is the unseen, yet unbreachable barrier that keeps minorities and women from rising to positions of leadership, regardless of their qualifications or achievements. Sadly, it took nearly 79 years for a woman to become chair of the FCC and this first chairwoman has "Acting" in front of her title. Nevertheless, the move suggests progress and we are excited to track Chairwoman Clyburn’s record.
Glass Ceiling Shattered at FCC: The Clyburn Chairmanship Begins
[Commentary] The story in the Wall Street Journal on the one percent of people who have reportedly cut their wireline broadband subscriptions to use wireless instead is a hot mess that requires some careful rebuttal.
But first, that the Wall Street Journal is even writing about this issue at all, as a possible “thing,” and doing so without directly citing the high cost of wired broadband until the fifth paragraph is rage-inducing. The WSJ minces around the cost issue by distracting readers with the chimera of more Wi-Fi hotspots and better cellular coverage as the reason people are cutting the wireline cord. But its examples show cost is the issue for most people. And if cost is the primary reason people are electing to ditch their wireline service we have two problems: One, wireline broadband costs too much, and the second is wireline can’t convincingly differentiate its value from the current LTE-wireless offerings.
Broadband cord cutters? If this is a thing, ISPs, regulators and Silicon Valley have utterly failed Cord Cutters Lop Off Internet Service More Than TV (WSJ)
The biggest of the proxy advisory firms, Institutional Shareholder Services, lent its support to Sprint Nextel‘s proposed sale to SoftBank of Japan, amid ongoing criticism of the deal by investors and a rival bid by Dish Network.
In its report, I.S.S. found that SoftBank’s offer fairly valued Sprint and provided much-needed capital that would help the wireless provider expand its network and turn around its long-struggling fortunes. “Given the strategic merits of the SoftBank transaction, the sales and negotiation process overseen by the board, the strength of the valuation relative to precedent transactions, and the market reaction, a vote for the transaction is warranted,” I.S.S. wrote. The recommendation by I.S.S. may influence many of the institutional investors that own shares in Sprint ahead of a scheduled meeting on June 12.
ISS Backs Sprint’s Deal With SoftBank Sprint investors urged to back $20.1bn SoftBank bid (Financial Times)
SoftBank’s bid for Sprint Nextel is now opposed by shareholder-advisory firm Egan-Jones Ratings Co., which reversed its position as Dish Network’s counterbid gained momentum.
SoftBank will probably improve its $20.1 billion takeover offer for Sprint, Egan-Jones said in a report to clients. Because of those elements, “it would be unwise at this time for the company’s shareholders to approve the merger agreement with SoftBank in its current form,” the Haverford, Pennsylvania-based firm said. The change of heart is a setback for Tokyo-based SoftBank, which has said its won’t raise its bid for Sprint because it’s already better for investors than Dish’s offer. While Egan-Jones originally endorsed the SoftBank bid last week, Sprint agreed May 20 to allow Dish access to private financial data, giving Dish information to build a stronger case for its own $25.5 billion proposal.
SoftBank-Sprint Deal Opposed by Investor Adviser Egan-Jones
The word “data” connotes fixed numbers inside hard grids of information, and as a result, it is easily mistaken for fact. But including bad product introductions and wars, we have many examples of bad data causing big mistakes. Big Data raises bigger issues. The term suggests assembling many facts to create greater, previously unseen truths. It suggests the certainty of math. That promise of certainty has been a hallmark of the technology industry for decades. With Big Data, however, there are even more hazards, some human and some inherent in the technology.
Kate Crawford, a researcher at Microsoft Research, calls the problem “Big Data fundamentalism — the idea with larger data sets, we get closer to objective truth.” She identified “six myths of Big Data”: Myth 1: Big Data is New. Myth 2: Big Data Is Objective. Myth 3: Big Data Doesn’t Discriminate. Myth 4: Big Data Makes Cities Smart. Myth 5: Big Data Is Anonymous. Myth 6: You Can Opt Out.
Why Big Data Is Not Truth
Sen. Rand Paul (R-KY) came to Google and Facebook's defense when asked about their commitment to protecting users' privacy.
Sen Paul, who is currently on a fundraising trip to Silicon Valley, took issue with Wired reporter Spencer Ackerman's comments about the two Web giants making money off of people's personal information, and their mixed reputation on protecting users' online privacy. "That’s not exactly true. I don’t entirely accept that premise. What I would say is you can track with Google, and share some information to get a service. It’s an exchange," Sen Paul told Ackerman. "As long as it’s part of an exchange and they uphold your contract, I’m all for that." Pivoting from talking about the companies' track record on online privacy, Sen Paul said he worries about the government using the Patriot Act to obtain a sweeping amount of people's information from companies — all with immunity from future lawsuits.
Sen. Paul defends Google, Facebook on privacy Senator Rand Paul Talks Tech, Civil Liberties, and Keeping the Government Out of Your Email (Wired)
Defense Secretary Chuck Hagel called out China for alleged cyberattacks against the U.S. government and several industries.
Speaking at the Shangri-La Security Dialogue, where Chinese officials were present, Sec Hagel urged China to work with the United States to establish "international norms of responsible behavior in cyberspace." "The United States has expressed our concerns about the growing threat of cyber intrusions, some of which appear to be tied to the Chinese government and military," Sec Hagel said.
Sec Hagel calls out China on cyberattacks Cyber theft hurts China too, says U.S. Secretary of Defense (GigaOm)
Lobbyists who advocate legalizing online poker are on the prowl for a new Republican to champion their cause in the Senate.
Former Sen. Jon Kyl (R-AZ) had been a reliable supporter of online poker, but he retired last year after making a last-ditch effort to pass legislation with Senate Majority Leader Harry Reid (D-NV). Gambling interests are eager to revisit Internet poker legalization — a top priority for Reid’s casino-dominated home state — but lobbyists for the gaming industry doubt the effort will succeed until a Republican ally is found from outside Nevada who can broaden the issue’s appeal. “That's important to do. We want to make sure that this is not Nevada-centric. It's important to find someone who sees the wisdom of going forward with the federal bill,” said Frank Fahrenkopf, president and CEO of the American Gaming Association. “It just makes sense that this important legislation has bipartisan support.”
The House will also see action on Internet gambling this year.
Online poker lobby wants more GOP lawmakers at table
Former Federal Communications Commission member Robert McDowell warned that the replacements for former FCC Chairman Julius Genachowski and himself might not be installed until late fall, if then.
He said he was not looking for a speedy confirmation and pointed to the "trifecta of scandals" the Administration was currently dealing with that could lead to holds on FCC and other nominees until certain documents were presented. The nominations of current commissioners Ajit Pai and Jessica Rosenworcel were both held up for months by Sen. Charles Grassley (R-Iowa). McDowell was asked whether he thought the Acting Chairwoman Mignon Clyburn would push forward with major moves on the broadcast incentive auctions. He suggested that she may have to if the commission wants to keep the process moving.
Commissioner McDowell: Filling FCC Seats Could Take a While
Small Internet publishers have been to Washington before to tell their story, but this time they are gathering with a singular purpose: to persuade lawmakers to put more pressure on Mozilla to change its plans for blocking third-party advertisers cookies by default in its Firefox browser.
As many as 60 small Web companies will be visiting lawmakers June 3 and 4 as part of the Interactive Advertising Bureau’s (IAB) annual Long Tail Alliance Fly-In. Even though it's the group's fifth year on the Hill, this year they are more determined than ever to be heard. Although Mozilla announced earlier this month that it wouldn't implement the default cookie blocker in its July release until it did more testing, small Internet websites still feel threatened.
Small Internet Businesses Head to Hill With Mozilla Topping Agenda