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Google's placement of its own flight-finding service in search results is resulting in lower click-through rates for companies that have not bought advertising, according to a study by Harvard University academics. The study provides data for how Google's placement of its own services amid "organic" search results may hurt competitors, which is the focus of an ongoing antitrust case between Google and the European Union.

How paid and non-paid search results are displayed has a powerful sway over consumers, the study found. Ben Edelman, an associate professor at Harvard Business School, and Zhenyu Lai, a Harvard doctoral candidate, looked at when Google began inserting its own Flight Search feature, launched in December 2011, into search results. They found that Google chose to display Flight Search depending on a user's search terms. When Flight Search was displayed, it takes a top position in the search results, pushing lower down non-paid search results. The result was an 85 percent increase in click-through rates -- a key measure for advertisers -- for paid advertisements. Non-paid, algorithmically generated search results for competing travel agencies dropped 65 percent.


Google search manipulation starves some websites of traffic
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Although the Internet seems ubiquitous, for many people in the developing world it is barely a reality—and women are left behind at greater rates than men. An extensive report from Intel and Dalberg Global Development Advisors, “Women and the Web,” quantifies the Internet gender gap, explains some factors contributing to it, and proposes ways to tackle it.

The report estimates “that 21 percent of women and girls in developing countries have access to the Internet, while 27 percent of men have access. This represents 600 million women and girls online—200 million fewer than men and boys.” Because of the spread of the Internet, an additional 450 million women and girls will likely become connected in the next few years, but the report’s authors believe that with the right interventions, an additional 150 million women could get connected. One of the report’s most valuable contributions is its work on the non-technological factors preventing women from using the Internet. In much of the developing world, basic access to the Internet is a significant problem—which is why developments like undersea cables and less expensive smartphones are particularly exciting. However, social factors that stop women from using technology at the same rate as men are an additional barrier.


The Internet’s Ongoing Gender Gap
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[Commentary] It is time to fix the pitifully slow, expensive Internet access in the United States: It is ridiculous that 19 million Americans can’t subscribe to high-speed Internet access because they live in areas that private companies believe are too expensive to serve. It’s even more ridiculous that one of the most technologically savvy countries in the world can’t offer reasonable prices compared to other places.

We used to say that the Internet allows everyone to be a publisher; now, with equal upload to download capacity over gigabit connections reaching homes through Google Fiber, that will actually be true in Austin. But I don’t want Google serving the whole country, because we still need policies that lower the barriers to entry for competitors. Without competition the incumbents won’t invest in offering better service. Yet … there is something very valuable about the news that Google Fiber is coming to Austin. It makes clear that America’s current backward status when it comes to high-speed internet access isn’t inevitable. It makes companies like AT&T want to act (sort of). And most importantly, it makes people get why high-speed access matters. This is a different phase, not an incremental improvement. The difference between the standard Internet access that shapes our imagination and a fiber-to-the-home connection is as great as the difference between no electricity and an electrified life. But only if we see this difference, only if we understand what’s possible, can we change our expectations. And that’s the most important thing about the Google Fiber efforts.

[Crawford is a professor at the Cardozo School of Law and an adjunct professor at the School of International and Public Affairs at Columbia University.]


America Doesn’t Need Google Fiber Everywhere — But We Do Need Its Buzz

The Minority Media & Telecommunications Council hosted its first luncheon to honor more than 60 past and present women leaders of the Federal Communications Commission.

Nearly 120 women and men convened in the venue decorated with busts and portraits of Dr. Dorothy I. Height and Dr. Mary McLeod-Bethune to hear several inspiring “her-stories” of seven of the women honorees and one sitting commissioner who recently announced his retirement from the regulatory agency. Sitting FCC Commissioners Jessica Rosenworcel and Mignon Clyburn served as the event’s opening and closing storytellers, respectively. They each spoke about the need for more diversity in the communications industry as well as the importance of role models to improve our nation’s communities.


MMTC Celebrates Past and Present Women Leaders of FCC at First-of-Its-Kind Luncheon

[Commentary] Just as the light bulb replaced the kerosene lamp and steam engines replaced sails, IP-based networks that carry video, voice phone calls, and data are taking over for the voice-only phone lines of the past century. Copper phones lines, organized into the Public Switched Telephone Network (PSTN) met the challenges of the 20th century; and fiber technology and IP-based networks are needed for the 21st century. The only question is whether this change, which is complex and will affect every American in some way, will be haphazard or carefully managed — in a fact-based and data-driven process to ensure that consumers are better off and that nobody is left behind.

A smart, managed transition means best-in-the-world broadband services for all consumers. It means continued private investment of tens of billions annually for the next three years by AT&T, Verizon, Sprint and T-Mobile alone) and the jobs that come with it. For people of color and other minority communities, a well-managed transition promises expanded opportunity for high-quality and affordable Internet service so they can fully experience the benefits – in health care, education, jobs, and civic empowerment – that are possible in the digital age. While African Americans and Latinos have been early and enthusiastic adopters of mobile technologies, they run far behind whites in home-based broadband. African Americans trail whites by about 16 percentage points and Latinos trail whites by about 19 points, in large part because many African Americans and Latinos can’t afford broadband at home. Managed properly, in a process that includes affordability, pricing, and adoption rates in its analysis, a move to all-IP networks should provide additional competitive choices and affordable options for advanced home-based and mobile broadband.


IP Transition Requires Smart, Fact-Based Strategy to Boost Broadband Opportunity
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A recent string of gigantic cyberattacks has proven it is possible to bend, but not break the Internet. It is easy to take down a website. An attack method called "distributed denial of service" allows cybercriminals to direct enormous amounts of traffic to a website, overwhelming its servers and rendering the site unreachable. Banks, government websites and financial exchanges have been frequent targets of recent DDoS attacks. But last month, European spam-prevention service Spamhaus was hit with the largest known cyberattack in history. Speeds slowed for large sections of Europe, according to CloudFlare, a company hired by Spamhaus to thwart its attacks. The attackers used nearly 100,000 servers to send 300 gigabits of traffic per second. That's more than three times larger than the Iranian-sponsored cyberattacks of September 2012, which prevented access to some U.S. banks' websites for days. Yet experts contend that the entire Internet can't just be flipped on or off like a light switch.


Cyberattacks can't break the Internet
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Sens John Thune (R-SD), Lamar Alexander (R-TN), Pat Roberts (R-KS), Richard Burr (R-NC), Tom Coburn (R-OK), and Mike Enzi (R-WY) released a white paper, “REBOOT: Re-examining the Strategies Needed to Successfully Adopt Health IT,” outlining concerns with current federal health information technology (health IT) policy, including increased health care costs, lack of momentum toward interoperability, potential waste and abuse, patient privacy, and long-term sustainability. The 2009 Obama stimulus bill included the Health Information Technology and Economic and Clinical Health (HITECH) Act which aimed to promote the adoption and meaningful use of health IT. Now, nearly four years after the enactment of the HITECH Act, and after hundreds of pages of regulations implementing the program, we see evidence that the program is at risk of not achieving its goals and that $35 billion in taxpayer money is being spent ineffectively in the process.

Findings from the senators’ white paper include:

  • Increased Costs. Despite previous estimates that the HITECH Act would save money due to the efficiencies in storing and sharing records and ordering and coordinating patient care, early reports raise concerns that health IT may have actually accelerated the ordering of unnecessary care as well as increased billing.
  • Lack of Clear Path Toward Interoperability. The HITECH Act federal incentive payments are being made to hospitals and physicians without clear evidence that providers can achieve “meaningful use,” or the ability to use the health IT program internally, and without an adequate plan to ensure unaffiliated providers can share information with each other through an interoperable network.
  • Lack of Oversight. Reports from the HHS Inspector General (IG), the Government Accountability Office, and stakeholders have revealed that the administration does not have adequate mechanisms in place to prevent waste and fraud in its health IT programs. Taxpayer dollars are being paid to providers who cannot or do not have to demonstrate that the health IT technology is actually used as prescribed, because the administration relies on provider “self-attestation” in many cases to determine eligibility for payments.
  • Patient Privacy at Risk. The HHS IG found that the security policies and procedures at the Centers for Medicare and Medicaid Services (CMS) and the Office of the National Coordinator for Health Information Technology – two federal entities which oversee the administration of the health IT program – are lax and may jeopardize sensitive patient data.
  • Program Sustainability. It is unclear for providers that have accepted grants and incentive payments how much it will cost to maintain their health IT systems after the initial grant money and incentive payments run out. In 2015, incentive payments in most scenarios cease, and providers face reduced Medicare or Medicaid reimbursements if they do not comply with federal requirements, which may impact small providers that may not have economies of scale to make health IT cost-effective.

GOP Senators Release White Paper on Health IT, Cite Concerns REBOOT: Re-examining the Strategies Needed to Successfully Adopt Health IT (read the report) GOP senators call for overhaul of electronic health records program (Center for Public Integrity)
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Digital advertising revenues climbed to a milestone high of $36.6 billion in 2012, according to the IAB Internet Advertising Revenue Report for the full-year of 2012. That historic number marks a 15 percent rise over 2011’s full-year number, which itself had been the highest on record, at $31.7 billion. The report, released by the Interactive Advertising Bureau (IAB) and prepared by PwC U.S., additionally reveals that 2012’s fourth quarter numbers, at $10.3 billion, rose by 14.9 percent from $9 billion in the final quarter of 2011. These 2012 Q4 figures represent an uptick of 11.6 percent over Q3 2012, which came in at $9.2 billion.

Other highlights include:

  • For the second year in a row, mobile achieved triple-digit growth year-over-year. The past year saw the mobile category surge 111 percent to $3.4 billion, pivoting off of 2011’s record-breaking 149 percent year-over-year rise to $1.6 billion. Mobile accounted for 9 percent of total internet ad revenue in 2012.
  • Digital video, a component of display-related advertising, brought in $2.3 billion, marking a significant year-over-year increase of 29 percent in 2012, compared to $1.8 billion in 2011.
  • Search revenues in 2012 totaled $16.9 billion or 46 percent of 2012 revenues, up 14.5 percent from $14.8 billion in 2011.
  • Display-related advertising revenues in 2012 totaled $12 billion or 33 percent of 2012 revenues, up almost 9 percent from $11 billion in 2011.
  • Retail advertisers continue to represent the largest category of internet ad spending, accounting for 20 percent in 2012, followed by financial services, which is responsible for 13 percent of the year’s revenues.

Internet Ad Revenues Reach Nearly $37 Billion
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The Texas Tribune will refine its model for sustainable local journalism and hire business analysts to explore new revenue models with $1.5 million in support from the John S. and James L. Knight Foundation.

Since its founding in 2009, the Tribune, a nonprofit online news organization, has built a sound financial base, going beyond philanthropic support to gain revenue from corporate sponsorships and its signature events. Building on this success, one-third of the Knight grant, or $500,000, will allow the Tribune to hire two fellows who will examine the creation of premium content for specific audiences and explore new revenue streams. The Tribune team will then write about their experiences and the successes of similar ventures on a new web site, sharing lessons and best business practices with nonprofit news organizations and other media observers. The balance of the grant, $1 million, will go to shoring up the Tribune’s working capital to ensure its long-term sustainability.


Texas Tribune wins $1.5 million in funding from Knight Foundation
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[Commentary] T-Mobile recently broke with longstanding industry norms and abandoned termination fees, sneaky overage charges, and other unfriendly practices. Although T-Mobile’s decision is welcome news for consumers, it doesn’t change the fact that the old extortions remained in place for about fifteen years, and that they remain in place for the vast majority of Americans still trapped in contracts with Verizon, AT&T, and Sprint. And it sheds light on a long-standing problem with how we think about and treat anticompetitive practices in the United States.

Our current approach, focused near-exclusively on monopoly, fails to address the serious problems posed by highly concentrated industries. If a monopolist did what the wireless carriers did as a group, neither the public nor government would stand for it. For our scrutiny and regulation of monopolists is well established—just ask Microsoft or the old AT&T. But when three or four firms pursue identical practices, we say that the market is “competitive” and everything is fine. To state the obvious, when companies act in parallel, the consumer is in the same position as if he were dealing with just one big firm. There is, in short, a major blind spot in our nation’s oversight of private power, one that affects both consumers and competition. This blind spot is of particular significance during an age when oligopolies, not monopolies, rule.


The Oligopoly Problem