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Did anyone really think that Julius Genachowski wouldn't leave the media ownership rules for the next guy? Or the always-in-court, nearly impossible to legally defend broadcast indecency rules? Even with 11th-hour pushes to take on both, it was clear throughout Genachowski’s tenure as Federal Communications Commission chairman that his heart was in expanding broadband and wireless services.
While he made headway in transforming the FCC into the Federal Broadband Commission, there’s still a lot to be done by the next chair. And while Mignon Clyburn may have broken the glass ceiling as acting chairwoman, she’s unlikely to take on anything controversial, leaving it all for nominee (ex-cable/wireless lobbyist) Tom Wheeler, whose Senate confirmation likely won’t move until September. Here’s what Genachowski left on his plate: 1) Spectrum Auctions, 2) Media Ownership, 3) Broadcast Indecency, and 4) Network Neutrality.
The Big Items on the FCC's To-Do List
Designs for many of the nation’s most sensitive advanced weapons systems have been compromised by Chinese hackers, according to a report prepared for the Pentagon and to officials from government and the defense industry.
Among more than two dozen major weapons systems whose designs were breached were programs critical to U.S. missile defenses and combat aircraft and ships, according to a previously undisclosed section of a confidential report prepared for Pentagon leaders by the Defense Science Board. Experts warn that the electronic intrusions gave China access to advanced technology that could accelerate the development of its weapons systems and weaken the U.S. military advantage in a future conflict. The Defense Science Board, a senior advisory group made up of government and civilian experts, did not accuse the Chinese of stealing the designs. But senior military and industry officials with knowledge of the breaches said the vast majority were part of a widening Chinese campaign of espionage against U.S. defense contractors and government agencies.
Confidential report lists U.S. weapons system designs compromised by Chinese cyberspies
Dick Boyce, once a partner at Bain & Co. and the former CEO of J.Crew, launched Liberty Works with the goal of helping Republicans catch up to Democrats in the digital data world. But he’s having trouble winning over Silicon Valley.
Liberty Works was hired to create an open-source voter data platform, meaning outside groups and campaigns would have access to the information for outreach and fundraising and also be able to build on it with their own applications. The RNC describes the goal for the shared data as “iPhone-like.” Since the RNC announcement on May 1, Liberty Works has gotten off to a shaky start. Top engineers in Silicon Valley who have been looking for ways to help Republican campaigns question Boyce’s vision and say the company’s outreach is underwhelming — as are its salary offers.
Silicon Valley isn’t buying GOP’s data plans
On May 17, the European trade commissioner, Karel De Gucht, accused Huawei and another Chinese equipment maker, ZTE, of violating the antidumping and subsidies laws of the European Union.
De Gucht called for negotiations between the European Union and China to avoid an investigation that could lead to punitive customs duties. Now the two sides appear set to meet in an attempt to work out their differences. China has asked that De Gucht hold an informal meeting with its vice commerce minister, Zhong Shan, in Brussels. “It appears that the commission is using the telecom equipment situation as some kind of a stick and bargaining chip against China,” said Stuart Newman, an antidumping expert at the Foreign Trade Association, a Brussels group that represents European trade associations. Newman said the Europe-China trade relationship had become more difficult over the last two years, driven by disputes over solar panels and now, telecom equipment.
Europeans Press China Over Trade in Telecom
Brussels is investigating whether Apple is muscling out rival smartphone makers from the European market with anti-competitive iPhone sales tactics and technical restrictions on the handset.
The scrutiny adds to the pressure Apple is facing from government regulators, coming in the week that US senators questioned Apple chief executive Tim Cook for the technology company’s tax accounting practices. According to a questionnaire sent to several EU mobile network operators, the European Commission’s probe is focusing on distribution terms that might favor Apple by ensuring no rival can secure a better sales deal.
Brussels probes Apple’s iPhone tactics
Sony is best known as a consumer electronics company, making PlayStation game consoles and televisions. And it loses money on almost every gadget it sells.
Sony has made money making Hollywood movies and selling music. That profitable part of the business is what Daniel S. Loeb, an American investor and manager of the hedge fund Third Point, wants Sony to spin off to raise cash to resuscitate its electronics business. But as Loeb pressures Sony executives to do more to revive the company’s ailing electronics arm, some analysts are asking, Why bother? Sony, it is suggested, might be better off just selling insurance. Or just making movies and music. But not electronics. A new report from the investment banking firm Jefferies delivered a harsh assessment of Sony’s electronics business. “Electronics is its Achilles’ heel and, in our view, it is worth zero,” wrote Atul Goyal, consumer technology analyst for Jefferies, in the report.
Sony’s Bread and Butter? It’s Not Electronics
The Federal Communications Commission’s Office of Communications Business Opportunities (OCBO) announced the release of the Research Design for the Multi-Market Study of Critical Information Needs (Research Design).
The Research Design and subsequent studies are intended to inform the Commission’s 2012 report to Congress on barriers to participation, also known as the Section 257 Report. Section 257 of the Communications Act of 1934, as amended, requires that the Commission review and report to Congress on: (1) regulations prescribed to eliminate market entry barriers for entrepreneurs and other small businesses in the provision and ownership of telecommunications and information services or in the provision of parts or services to providers of those services and that can be prescribed consistent with the public interest, convenience and necessity; and (2) proposals to eliminate statutory barriers to market entry by those entities, consistent with the public interest, convenience, and necessity.
The public is also invited to submit written comments in response to the research design. A copy of the research design is available on the OCBO website. Interested parties may file written comments in FCC Docket 12-30 not later than July 23, 2013. Comments may be filed using the FCC’s Electronic Comment Filing System (ECFS).
FCC Chairwoman Mignon Clyburn said, “The FCC has a duty to make sure that the industries it regulates serve the needs of the American public no matter where they live or what financial resources they have. The research design we announce today is an important next step in understanding what those needs are, how Americans obtain the information critical to their daily lives in a dynamic technological environment, and what barriers exist in our media ecologies to providing and accessing this information.”
FCC Announces Release of Critical Information Needs Research Design Research Design (Social Solutions International) Statement (Chairwoman Clyburn)
The board at News Corporation approved a proposed split into two companies, and authorized a $500 million stock buyback for investors in the soon-to-be-formed publishing business. It also announced appointments to the board for both of the companies.
The company is expected to complete its separation on June 28, with publishing assets like The Wall Street Journal, The New York Post and HarperCollins, and a handful of Australian pay television units, forming a company that will retain the name News Corporation. Fox Broadcasting, Fox News, FX and the Hollywood film and television studio will form an entertainment company to be called 21st Century Fox.
The announcement may do little to dispel criticism that the News Corporation board is too heavily made up of members of the Murdoch family. After the division Rupert Murdoch will serve as chairman of both companies. He will maintain his role as chief executive of 21st Century Fox. Murdoch’s two sons, James and Lachlan, will be directors of both companies. But the boards will also include new faces. Robert Thomson, as chief executive of the new News Corporation, will join the publishing company’s board, as will Ana Paula Pessoa, a partner at the public relations firm Brunswick Group; Masroor Siddiqui, managing partner of the investment firm Naya Management; and John Elkann, chairman of Fiat. Joel I. Klein, chief executive of News Corporation’s fledgling Amplify education division, will maintain a role on the company’s board.
Chase Carey, president and chief operating officer of 21st Century Fox, will join several new directors — Delphine Arnault, a French businesswoman and deputy general manager at Christian Dior Couture; Jacques Nasser, a former chief executive of the Ford Motor Company; and Robert S. Silberman, executive chairman of Strayer Education Incorporated — on the entertainment company’s board.
News Corporation Board Approves Split of Company
President Obama’s conciliatory gesture toward the press — a review of Justice Department investigations involving journalists — struck some national security reporters as closing the door after the sources have already bolted.
In announcing the review in his speech, the President said he was troubled that recent investigations, which involved the extensive tracking of a Fox News reporter, James Rosen, and the seizing of phone records at The Associated Press, “may chill the investigative journalism that holds government accountable.” Journalists say that chill has already set in. Jeremy Scahill, who writes about national security for The Nation, said that some sources who used to agree to encrypted chats and off-the-record conversations have recently stopped feeling comfortable with these terms. “At times it seems that being a Luddite may be the safest way to do serious national security reporting in a climate where there appears to be an intensifying war on serious journalism,” said Scahill.
Press Sees Chilling Effect in Justice Department Inquiries
The Justice Department notified the parent company of Fox News more than two years ago about its seizure of phone records belonging to one of its reporters, a Fox official said.
The parent company, News Corp, didn't tell Fox about the notification, the Fox official said. This new detail helps clear up a mystery at the heart of the continuing controversy over the government's actions. Over the past week, officials at Fox have denied they were notified of the phone-record subpoenas, while law-enforcement officials insisted they were. It appears the reason for the discrepancy was that the notice was sent to News Corp.
DOJ Notified News Corp. About Phone-Record Seizure