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A recent Supreme Court ruling undercut Verizon's lawsuit against network neutrality regulations, the Federal Communications Commission (FCC) argued in a court filing.

The agency argued that, based on the Supreme Court's ruling this week in Arlington v. FCC, it should be given deference to interpret its own authority, and the appeals court should reject Verizon's lawsuit. In a brief letter to the D.C. Circuit Court of Appeals, the FCC said that the deference standard "clearly applies" to the network neutrality case. Andy Schwartzman, an attorney and supporter of the FCC's rules, said the Supreme Court's decision "gives the FCC a leg up" but that he still expects it to be a "very close case."


FCC: Supreme Court ruling bolsters net neutrality defense
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[Commentary] America's 100 million cable and satellite subscribers are forced to pay ever-higher bills for a growing number of channels they do not watch. The American people are being ripped off.

Meanwhile, services such as iTunes and Netflix have led a revolution in how consumers purchase and experience music and video entertainment. They have upended entire industries to allow consumers to buy digital content where they want, when they want. Amid all this change, two entrenched interests — the cable television and video programming industries — have teamed up to use federal regulations to stack the deck against consumers.

I have introduced the Television Consumer Freedom Act, which aims to provide consumers with the option to buy only those channels they want to watch. The bill includes no mandates. Rather, it sends a powerful message to cable and satellite companies, such as Cox and DirecTV, and television programmers, such as Disney-ABC and NBC-Universal: If you want to continue to enjoy government-afforded regulatory benefits, offer TV-watching Americans an a la carte approach to programming rather than the take-it-or-leave-it ultimatum we have today. Another provision in the bill seeks to end the practice of sports team owners punishing fans by blacking out home games that don't sell out. It provides that games taking place in publicly financed stadiums can't be blacked out. The reaction to my proposal could be a case study of the trouble that common-sense ideas too often face in Washington.


Cable TV, the right way
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Passengers are increasingly relying on their tablets and other personal electronic devices for entertainment and work on U.S. domestic flights, despite a ban on their use during takeoff and landing, a study concludes.

The use of electronic devices, from laptops to tablets to smartphones, rose 24.3% this year over last year, according to the study by the Chaddick Institute for Metropolitan Development at DePaul University. Researchers observed 1,688 passengers on 23 flights operated by six airlines at randomly selected points when at cruising altitude. The share of passengers using electronic devices rose for the fourth consecutive year. At randomly selected points, 35.3% of passengers were engaged with their devices, compared with 17.6% in 2010. The increase in tablet and e-reader use was most significant, from 8.4% in 2012 to 10.7% in 2013. At any given point, more than one in nine passengers was using a tablet. The popularity of the devices reflects advances in technology, broader use among all demographics, and tech-friendly investments by airlines.


Tablet use soars among U.S. airline passengers
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[Commentary] Academic and government research has shown time and again that the much larger subsidies to rural areas are largely ineffective while telecommunications subsidies targeted at the poor have increased (land-line) telephone adoption among low-income people. The problem is that Lifeline subsidies are not funded by our relatively progressive income tax system, but by taxes all phone users, including the poor, pay to use their phones.

In other words, the funding source of Obamaphone is highly regressive because the tax that funds it is the same regardless of the payer’s income. Thus, any poor person who does not receive subsidies either because he doesn’t know about them or because he doesn’t qualify is worse off when subsidies increase because the taxes on his phone service must also increase. A second issue is whether subsidizing wireless phones increases wireless adoption by the poor. This turns out to be a very hard question to answer, and one that helps illuminate why economics is the dismal science. But whether the wireless Lifeline program increases wireless telephone adoption in a cost-effective manner is an empirical question and cannot be answered by ideology. Our history with targeted telecommunications subsidies tells us that it can be effective. Strong and growing demand for wireless services by all segments of society tells us that it will have to target carefully in order to make a difference.

[Wallsten is vice president for Research and senior fellow at the Technology Policy Institute. Mayo is professor of Economics, Business and Public Policy in Georgetown University’s McDonough School of Business.]


Is Obamaphone good for the poor? Maybe not.

The Federal Communications Commission appointed Betsy Wergin, Commissioner, Minnesota Public Utilities Commission, to serve on the . This appointment fills the position recently vacated by the Honorable Phil Montgomery, Chairman, Public Service Commission of Wisconsin.

Jurisdictional separations is the process of apportioning regulated costs between the interstate and intrastate jurisdictions. The primary purpose of separations is to determine whether a local exchange carrier (LEC)'s cost of providing regulated services are to be recovered through its rates for intrastate services or through its rates for interstate services. The first step in the current separations process requires carriers to apportion regulated costs among categories of plant and expenses. In the second step of the current separations process, the costs in each category are apportioned between the intrastate and interstate jurisdictions. Once costs are separated between the jurisdictions, carriers can then apportion their interstate regulated costs among their interexchange services and their intrastate costs among intrastate services.


Federal-State Joint Board on Jurisdictional Separations
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Apple and the Department of Justice are set to spar in a closely watched price-fixing trial set for early June but, increasingly, attention in the case is turning to a third party — Amazon.

In pre-trial filings, Apple is trying to expose redacted evidence that the company claims will “embarrass” Amazon and show that the retailer engaged in the same activities for which Apple is now on trial. The claims are set out, in part, in a letter last week from Apple’s law firm that urges US District Judge Denise Cote to reveal information about its pricing as well as “internal discussions about the inferiority” of its Kindle e-reader compared to the iPad. Apple also says the redacted information will help expose the “fiction” that Amazon was “forced” to adopt a new pricing system as a result of a 2010 arrangement between Apple and five big publishers. This arrangement — known as “agency pricing” — resulted in publishers requiring retailers to sell e-books on a commission basis, in which publishers could set the price. This led the Department of Justice, state governments and class action lawyers to sue Apple and the publishers; the latter settled the cases and agreed to pay out millions but Apple is holding its ground. Apple argues that the Department of Justice is wrong to portray Amazon as a victim, along with consumers, of a conspiracy to raise prices. Instead, the company claims that Amazon was contemplating agency pricing too and was pleasantly surprised when the publishers took it up on their own.


Amazon: victim or aggressor? Issue will frame Apple e-book trial
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Moving forward with its plan to issue mobile privacy rules, the self-regulatory group Network Advertising Initiative this week provided members with a draft version of a code of conduct regarding information collected from apps.

The draft rules deal with behavioral targeting, or serving ads based on data collected across more than one app. The organization expects to finalize its Mobile Application Code by next month, according to NAI Executive Director Marc Groman. As with longstanding privacy rules for data collected from desktop units, the proposed mobile rules require companies to let people opt out of receiving behaviorally targeted ads on mobile devices. Even if people opt out, the proposed NAI code allows ad networks to continue to collect data “non-personally identifiable” data for some purposes, including analytics, ad optimization and frequency capping. The NAI says data connected to a particular device -- as opposed to a person -- is “non-personally identifiable.” But the NAI also proposes requiring companies to either discard that information, or else “de-identify” it (meaning that it's no longer linkable to particular devices), as soon as the data is no longer needed.


Network Advertising Initiative Proposes New Mobile Privacy Rules
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May 23 marks one year since we released the Digital Government Strategy, as part of the President’s directive to build a 21st Century Government that delivers better services to the American people. The Strategy is built on the proposition that all Americans should be able to access information from their Government anywhere, anytime, and on any device; that open government data - data that are publicly accessible in easy-to-use formats - can fuel innovation and economic growth; and that technology can make government more transparent, more efficient, and more effective. A year later, there’s a lot to be proud of.

In the end, the digital strategy is all about connecting people to government resources in useful ways. And by “connecting” we mean a two-way street. We are counting on the public - developers, entrepreneurs and innovators - to join us, and be a part of the process. Together, we will continue to modernize government to respond to 21st Century opportunities.

[Steve VanRoekel is the U.S. Chief Information Officer and Administrator. Todd Park is the U.S. Chief Technology Officer.]


Digital Strategy: Delivering Better Results for the Public
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The Department of Commerce has made some big strides in providing better information to citizens in a timely manner through multiple formats and increasing access to services on mobile devices. The goal is to make citizen services and information available anywhere, anytime, and on any device, and in formats that facilitate additional use by public developers and entrepreneurs. Technology is changing so rapidly that nearly 50% of American adults own a smart phone today, up from 35% only one year ago. To help keep pace with the rapid deployment of mobile technology, Commerce is working hard to ensure our services and data are available to citizens in whatever format and on whatever device they prefer.


Digital Government Strategy Brings Big Changes to the Commerce Department
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ESPN is one of The Walt Disney Company's most profitable divisions, and the sports network is growing. But getting bigger has its price. For ESPN that means hundreds of layoffs now, to try to stay in the black long-term.

ESPN is building a huge new set for its flagship show SportsCenter, and it’s launching a network for the Southeastern Conference. But no pain, no gain -- it’s cutting up to 400 jobs, out of about 7,000 worldwide. Tony Wible, a media analyst at Janney Capital Markets, says pro athletes’ salaries are driving up the cost of rights to broadcast live sports. And starting in August, ESPN will have to compete with Fox’s new sports network. ESPN says it’s confident the cuts will make the network more innovative.


The low-down on the slim down of ESPN