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[Commentary] Vice President Joe Biden tried to explain that the right-wing reports alleging that the president sought to take Americans’ guns away was a “bunch of malarkey,” and added, “To be very blunt with you, we’re counting on all of you, the legitimate news media, to cover these discussions.” Good luck with that, Mr. Vice President.

The sad truth is that this nonsense is introduced into the media ecosystem by right-wing reality-denying sources, and it almost always makes its way into the mainstream media—often going unchallenged. Take, for example, Ted Nugent himself. Why in the world, while previewing a report on—you guessed it—Nugent’s views on firearms, would CNN’s Deb Feyerick claim that this violent lunatic enjoyed “a very deep connection with the facts and the facts that he needs to make his argument”? In the first place, it’s a logically nonsensical statement. More importantly, however, it is patently false. There are said to be as many as 80 million guns in private hands in this country. Nobody could take them away, even if they wanted to—and as Vice President Biden tried to explain, nobody does. Yet just three days after Feyerick made herself look foolish in the service of Nugent’s nuttiness, during a February 4 segment on CNN’s “Erin Burnett OutFront,” both Feyerick and Burnett went even deeper into the weeds, wondering aloud what would happen if the Obama administration attempted to “take all the guns away tomorrow.”


The Mainstream Media Is Gobbling Up Conservative Crazies

A late 2012 survey by the Pew Research Center’s Internet & American Life Project shows that young adults are more likely than others to use major social media. At the same time, other groups are interested in different sites and services.

In the case of Pinterest, Instagram, and Tumblr, these are the first reportable survey readings by Pew Research allowing comparison of whites, African-Americans, and Latinos. Internet users under 50 are particularly likely to use a social networking site of any kind, and those 18-29 are the most likely of any demographic cohort to do so (83%). Women are more likely than men to be on these sites. Those living in urban settings are also significantly more likely than rural internet users to use social networking. The percentage of internet users who are on Twitter has doubled since November 2010, currently standing at 16%. Those under 50, and especially those 18-29, are the most likely to use Twitter. Urban-dwellers are significantly more likely than both suburban and rural residents to be on Twitter.


The Demographics of Social Media Users — 2012
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World Radio Day, marked the 67th anniversary of the United Nations’ first broadcast—“This is the United Nations calling the peoples of the world”—with two panels of UN officials and journalists on radio’s continuing relevance in Conference Room 6 of the United Nations building.

The first “panel” was really just a series of speeches, from Francisco Javier Sanabria, a member of Spain’s mission to the UN; Philippe Kridelka, director of the UN Educational, Scientific, and Cultural Organization’s New York office; and Stephane Dujarric, director of the News and Media division of the UN’s Department of Public Information. The second panel was a discussion among Bill Siemering, an NPR founder who now works with radio stations in Sierra Leone; Lesedi Mogoatlhe, who trains young radio journalists in South Africa; John Dinges, a professor at Columbia’s journalism school specializing in radio; Amy Costello, reporter for the public radio program The World who now does an investigative podcast; and Anne Bennett, executive director of Hirondelle USA, which helps countries transition from war to peace. Both panels stressed the unique strengths of radio as a medium, especially in the developing world. In short: It’s cheap, it’s easily accessible to both broadcasters and listeners, it’s local, and it’s engaging.


UN celebrates World Radio Day
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Sticking to its resolution to put iPads in students’ and teachers’ hands, the Mansfield Independent School District in Texas deployed 10,600 of Apple’s popular devices in just 5 weeks—no small feat, but worth the effort, district ed-tech staff said.

Describing the initiative as “kind of a monster job,” Kristi Bell, an ed-tech trainer with Mansfield ISD, said the deployment involved students at six high schools, a career-tech school, and educators in those buildings. Mansfield ISD leaders began the project in February 2012 with a “goal to ensure educational opportunities for all students, delivered through innovative and inspiring teaching methods.” State legislative changes meant the district could use some of its instructional materials/textbook funding allotment for digital resources, which opened the door for the initiative. The Power Up! Initiative began as a limited pilot after educators secured school board approval in April, in which one teacher in a single high school used iPads with two of her classes. Those students took their iPads home, and the school used AirWatch’s mobile device management software to deploy, monitor, and provide web security for the iPads.


How one school district deployed 10,000 iPads in five weeks
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The Internet, it seems, has found its version of vinyl chic.

Just as the LP has enjoyed a second spin among retro-minded music fans, animated GIFs — the choppy, crude snippets of video loops that hearken back to dial-up modems — are enjoying an unlikely vogue as the digital accessory of the moment. Hypnotically repeating GIFs are popping up in art galleries in Berlin, Miami and New York. In fashion advertising, they are suddenly as hot as ironic brogues, popping up in online marketing campaigns for brands like Burberry, Diesel and Jack Spade. Online, there are GIF contests both highbrow and low, and “Best of” GIF roundups. And social media sites like Tumblr have entire pages devoted to viral GIFs plucked from the biggest news events of five minutes ago (political speeches, awkward awards-show moments and other pop-cultural flotsam), which instantly circulate as must-see memes.


Fresh From the Internet’s Attic

February 14, 2013 (Cybersecurity; Comcast; Love)

BENTON'S COMMUNICATIONS-RELATED HEADLINES for THURSDAY, FEBRUARY 14, 2013 (HAPPY VALENTINE’S DAY)

Follow us on Twitter @benton_fdn


CYBERSECURITY
   National Institute of Standards and Technology Initiates Development of New Cybersecurity Framework - press release
   Improving the Security of the Nation’s Critical Infrastructure - press release
   Obama’s Cyber Executive Order Lays Foundation for Mandatory Regulation
   Cybersecurity Order Aims for a Restart With Congress
   Administration warns cybersecurity order not enough, urges Congress to act
   Politicians, privacy advocates weigh in on cybersecurity exec order
   Controversial cyber bill CISPA returns to Congress for debate, same as before
   President Obama's Cybersecurity Executive Order Scores Much Better Than CISPA On Privacy
   Cybersecurity Must Respect Internet Freedom and Innovation - press release
   Emergency Alert System devices vulnerable to hacker attacks, researchers say [links to web]
   FCC Urges Stations, Cable Ops to Shore Up Emergency Alert Defenses [links to web]

MORE ON THE STATE OF THE UNION ADDRESS
   President Obama Sees the Future of Manufacturing: 3-D Printing [links to web]
   White House Touts Citizen Responses to State of the Union [links to web]
   SOTU winners and losers, according to social media [links to web]
   Twitter: A live megaphone for lobbying groups, companies

EMERGENCY COMMUNICATIONS
   Will FirstNet Move Forward With Local Broadband Projects?
   Call for Reviewers - State and Local Implementation Grant Program - public notice

TELEVISION
   Comcast: All In for NBC - analysis
   Comcast Is Content to Diversify - analysis
   Recap: Satellite Video 101
   Emergency Alert System devices vulnerable to hacker attacks, researchers say [links to web]
   FCC Urges Stations, Cable Ops to Shore Up Emergency Alert Defenses [links to web]
   Does Anyone Really Get 'Free TV' Anymore?
   Broadcasters Want Dish To Pay More For AutoHop [links to web]

MORE ON INTERNET/BROADBAND
   Comcast's Very Scary PSTN Filing - analysis
   A Possible Pilot Collaboration between Rural Telecom Providers and the Postal Service
   The Importance of Standards in Developing an Effective Internet - press release [links to web]
   Lawmakers to renew push for online sales tax [links to web]
   Online Sales Cannibalizing Retail? Nope, Says PwC [links to web]
   New “FiberHouse” in Kansas City invites startups for a year, rent-free [links to web]

SPECTRUM/WIRELESS
   Chairman Rockefeller Plans Classified Briefing on Government Spectrum Use
   Sweden boasts the world’s fastest 4G speeds; US ranks a lowly 8th
   FCC Confirms Agenda for Open Meeting Wednesday, February 20, 2013 - public notice
   Global mobile phone sales decline for first time since 2009 [links to web]
   Utah bill would ban teens from phone use on roads [links to web]

CONTENT
   High stakes if Apple e-books antitrust case goes to trial
   Why Google Pays Apple $1 Billion a Year
   Time Warner Considers Spinning Off Some of Its Magazines [links to web]

PRIVACY
   Your acts on social media can be tracked - editorial

PATENTS
   Google hits back against BT with patent lawsuits [links to web]

POLICYMAKERS
   Senate Commerce Committee Organizes for 113th Congress - press release [links to web]
   FCC Seeks Nominations For Municipal and Tribal Representatives On The Intergovernmental Advisory Committee - public notice

COMPANY NEWS
   Google’s Biz Chief: 50 Percent of Ads Will Go Online in the Next Five Years [links to web]

STORIES FROM ABROAD
   China's 'Wall' Hits Business
   Sweden boasts the world’s fastest 4G speeds; US ranks a lowly 8th
   Malone Cable Threat Sparks Copper Revival in Europe [links to web]

MORE ONLINE
   National Library of Medicine Seeks User Data from Social Media [links to web]
   USC building a new $50-million home for its media school [links to web]

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CYBERSECURITY

NIST INITIATES DEVELOPMENT OF NEW CYBERSECURITY FRAMEWORK
[SOURCE: National Institute of Standards and Technology, AUTHOR: Press release]
The National Institute of Standards and Technology (NIST) announced the first step in the development of a Cybersecurity Framework, which will be a set of voluntary standards and best practices to guide industry in reducing cyber risks to the networks and computers that are vital to the nation’s economy, security and daily life. President Barack Obama called for the Cybersecurity Framework in his Improving Critical Infrastructure Cybersecurity Executive Order. In accordance with the Executive Order, the Secretary of Commerce has directed the Director of NIST to lead the development of a framework to reduce cyber risks to critical infrastructure, such as power plants and financial, transportation and communications systems. NIST will issue a Request for Information from critical infrastructure owners and operators, federal agencies, state, local, territorial and tribal governments, standards-setting organizations, other members of industry, consumers, solution providers and other stakeholders. NIST will use the input gathered to identify existing consensus standards, practices and procedures that have been effective and that can be adopted by industry to protect its digital information and infrastructure from the full range of cybersecurity threats. The framework will not dictate “one-size-fits-all” solutions, but will instead enable innovation by providing guidance that is technology neutral and recognizes the different needs and challenges within and among critical infrastructure sectors.
benton.org/node/145003 | National Institute of Standards and Technology
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MORE ON EXECUTIVE CYBERSECURITY ACTION
[SOURCE: The White House, AUTHOR: Michael Daniel]
Because of the importance of our cyber critical infrastructure, and the seriousness of the threats, the President issued an Executive Order directing federal departments and agencies to use their existing authorities to provide better cybersecurity for the Nation. These efforts will by necessity involve increased collaboration with the private sector and a whole-of-government approach. In developing the order, the Administration sought input from stakeholders of all viewpoints in industry, the public sector, the legislative branch, and the advocacy community. Their input has been vital in crafting an order that incorporates the best ideas and lessons learned from industry experience, legislative efforts, and successful federal efforts. Over the course of the past six months, we hosted over 30 organizations, representing all 18 critical infrastructure sectors, and heard from over 200 companies directly. We also met with trade associations representing an additional 6,000 companies, over $7 trillion in annual economic activity, and over 15 million employees to discuss their concerns and ideas for solutions. As a result of our outreach, numerous stakeholders responded positively to the Executive Order.
[Michael Daniel is Special Assistant to the President and Cybersecurity Coordinator]
benton.org/node/145021 | White House, The
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OBAMA’S CYBER EXECUTIVE ORDER LAYS FOUNDATION FOR MANDATORY REGULATIONS
[SOURCE: nextgov, AUTHOR: Aliya Sternstein]
Until Congress authorizes new powers, the Administration cannot force businesses to shield their computers or disclose computer breaches, which experts say are key to stopping intrusions by increasingly sophisticated actors and hostile nations. The thinking behind the executive order is that taking one year to achieve consensus with industry on voluntary information-sharing and security controls will enable new laws to immediately take effect, whenever Congress acts. The measures allow operators of critical infrastructure networks to see classified intelligence on detected threats. This move expands a program that had been exclusive to defense contractors to power plants, water treatment facilities and other vital businesses that, if disrupted, would upend national or economic security. The guidelines also task the National Institute of Standards and Technology -- which has a good rapport with industry -- to co-develop cyber controls for those sectors. Under Tuesday’s directives, the government will align a framework of standards, methodologies, procedures and processes to "reduce cyber risks to critical infrastructure." It is unclear how many companies will choose to participate in the new initiative. Part of the reason lawmakers have not passed even voluntary cyber reforms is that businesses and many Republicans fear optional measures eventually could become mandatory. The executive order did not allay those fears. While pleased the order grants DHS significant oversight, the Republican head of the House Homeland Security Committee expressed misgivings about the policy’s potential for mission creep.
benton.org/node/145002 | nextgov
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ORDER AIMS TO RESTART WITH CONGRESS
[SOURCE: Wall Street Journal, AUTHOR: Arik Hesseldahl]
A first step. That’s how President Obama’s executive order concerning “Improving Critical Infrastructure Cybersecurity,” is being widely described. What the order really amounts to is a starting gun on the renewed push by the White House to get a new cybersecurity bill through Congress this year. One thing that is happening: Companies in the information security space are seeing their share prices rise today, in part on assumptions that digital securities concerns topping the national agenda could mean new business in the coming year. Shares of Symantec opened higher in early trading, as did shares of Intel, which owns software security company McAfee. Checkpoint Software also rose.
benton.org/node/145001 | Wall Street Journal
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ADMINISTRATION WARNS ORDER ISN’T ENOUGH
[SOURCE: The Hill, AUTHOR: Brendan Sasso]
Administration officials said that despite a new cybersecurity executive order, Congress must still enact legislation to better protect the nation's critical computer systems from hackers. "This executive order is only a downpayment on what we need to address this threat," National Security Agency Director Keith Alexander said during an event at the Commerce Department to discuss the administration's action. "This executive order can only move us so far and is not a substitute for legislation." He emphasized that, unlike legislation, the order cannot grant agencies any new powers or authorities. White House Cybersecurity Coordinator Michael Daniel explained that the administration must still work with lawmakers and industry groups to craft and implement the security standards. "The hard work is actually ahead of us in implementing the [executive order] and making it reality," he said. Dr. Patrick Gallagher, director of the National Institute of Standards and Technology, said his agency will take the first step toward implementing the order by issuing a request for input from the public. He emphasized that the standards are voluntary and are aimed at helping companies better protect their systems. Deputy Attorney General James Cole argued that the executive order includes important safeguards to ensure that companies do not expose their customers' personal information to the government.
benton.org/node/145000 | Hill, The
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REACTION TO CYBERSECURITY ORDER
[SOURCE: Washington Post, AUTHOR: Hayley Tsukayama]
Tech industry leaders and observers were quick to weigh in on the cybersecurity executive order. The Center for Democracy and Technology praised President Barack Obama for an order that addresses privacy concerns from the beginning of the design process rather than after the fact. "By explicitly requiring adherence to fair information practice principles, the order adopts a comprehensive formulation of privacy,” said the group’s president, Leslie Harris. “The annual privacy assessment, properly done, can create accountability to the public for government actions taken in the name of cybersecurity.” Sens Jay Rockefeller (D-WV) and Tom Carper (D-DE), chairman of the Senate Commerce and Homeland Security committees, said that they would work with the Administration to shepherd new legislation through Congress as quickly as possible. House Republicans said they were glad the order establishes the Department of Homeland Security as a leader on cybersecurity issues, but that the Administration should be careful to take a hands-off approach to legislation.
benton.org/node/144999 | Washington Post
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RETURN OF CISPA
[SOURCE: The Verge, AUTHOR: Carl Franzen]
The Cyber Intelligence Sharing and Protection Act (CISPA) was reintroduced in the House; it would allow private companies to share information on "cyber threats" with the government and each other. The bill, which is said to be "identical" to the version debated in the last Congress, goes a step further than President Barack Obama's cybersecurity order. While the President's order gives only government agencies permission to share their threat information with companies (not the other way around, according to Forbes), CISPA would give companies the ability to share information about suspicious activity on their networks and security breaches back with the government. House Intelligence Committee ranking member Dutch Ruppersberger (D-MD) said that he's been working with the White House to avoid another veto threat.
benton.org/node/145006 | Verge, The
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CYBERSECURITY AND PRIVACY
[SOURCE: Forbes, AUTHOR: Andy Greenberg]
With the reintroduction of the much-maligned Cyber Intelligence Sharing and Protection Act scheduled for the day after the State of the Union, the House of Representatives may have hoped the President’s own cybersecurity initiative would divert some of the attention away from the controversial legislation known as CISPA. Instead, the White House’s long-awaited executive order on cybersecurity is actually scoring points with privacy advocates -- and putting CISPA in a worse light than ever. “The president’s executive order rightly focuses on cybersecurity solutions that don’t negatively impact civil liberties,” reads a statement on the executive order from the American Civil Liberties Union, which has opposed CISPA. CISPA, which passed the House last year but never reached a vote in the Senate, has drawn fire for a provision that would allow companies to hand over cybersecurity threat information to government agencies that include the National Security Agency and Department of Defense, even granting them immunity from existing laws and regulations that would prevent the sharing of some sensitive information.
benton.org/node/145005 | Forbes
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CYBERSECURITY, FREEDOM AND INNOVATION
[SOURCE: Internet Infrastructure Coalition, AUTHOR: Christian Dawson]
The President and Congress have highlighted the importance of cybersecurity. In the coming weeks and months, we expect to see legislative and regulatory activity in this area, including President Obama’s executive order and the reintroduction of CISPA. While the i2Coalition shares this concern for security of America’s vital infrastructure, there’s a right way and a wrong way to go about achieving it. We strongly believe in a multi-stakeholder approach to all Internet governance issues that embraces differing views in an effort to achieve a reasonable consensus. Any discussion of Internet security must take into account the innovative businesses that continue to provide a safe, secure and reliable place to do business. Regulations and other government policies need, at their base, to preserve the ability of companies to innovate and compete. We must operate on a level playing field with the rest of the global economic players while continuing to foster freedom, innovation, opportunity, and the rights to free expression that have enabled the Internet to flourish.
benton.org/node/145004 | Internet Infrastructure Coalition
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MORE ON SOTU ADDRESS

TWITTER AS LOBBYING TOOL
[SOURCE: Washington Post, AUTHOR: Cecilia Kang]
On television, President Barack Obama spent a commercial-free hour delivering his State of the Union speech. But on Twitter, the nation’s biggest lobbying groups and corporations found a megaphone to place ad money and promote their views. The National Rifle Association, AARP, Chevron and Microsoft bid for top placement of 140-character tweets aimed at spreading their policy and political positions and marketing their products. Ahead of the event and during it, they competed in Twitter’s behind-the-scenes advertising auction that gave prominent display to winners who wanted to get their tweets in front of the legions of users who were searching for information related to Obama’s speech. The NRA’s Institute for Legislative Affairs won the most coveted keyword — “#SOTU” — so that people who searched for that term saw the gun group’s “sponsored tweet” pop up at the top of their personal feeds: “@BarackObama gives good speeches, but how would his gun policies actually work? Don’t be fooled by #SOTU.”
benton.org/node/145039 | Washington Post
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EMERGENCY COMMUNICATIONS

FIRSTNET AND BTOP PROJECTS
[SOURCE: Government Technology, AUTHOR: Brian Heaton]
The First Responder Network Authority (FirstNet) announced its intention to make seven regional wireless connectivity projects the first test sites for the National Public Safety Broadband Network. Under a resolution adopted by the FirstNet board of directors, the authority now has 90 days to enter into separate lease agreements with each project entity to use the 700 MHz spectrum for operation of a wireless public safety network. Each of the seven regions are 2010 Broadband Technology Opportunities Program (BTOP) grant winners. Their funding was partially suspended in 2012 by the National Telecommunications and Information Administration (NTIA) when the Middle Class Tax Relief and Job Creation Act of 2012 established FirstNet.
benton.org/node/144994 | Government Technology
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STATE AND LOCAL IMPLEMENTATION GRANT PROGRAM
[SOURCE: National Telecommunications and Information Administration]
The Department of Commerce’s National Telecommunications and Information Administration (NTIA) is soliciting volunteers to serve as peer reviewers to assess grant application proposals for the $121.5 million State and Local Implementation Grant Program (SLIGP), an important planning and consultation component for the proposed nationwide public safety broadband network. Qualified reviewers must have expertise and/or significant experience in at least one of the following areas: public safety communications (e.g., a first responder knowledgeable about public safety communications) or a public sector official (e.g., information technology professional, an elected or appointed government official knowledgeable about public safety communications, or a government official knowledgeable about public safety networks). All reviewers must be currently employed by a federal, state, local, or tribal government agency. Reviewers will not be compensated and will need to sign a waiver of compensation. In addition, reviewers must agree to comply with Department of Commerce policies on conflicts of interest and confidentiality.
benton.org/node/145027 | National Telecommunications and Information Administration
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TELEVISION

COMCAST ALL IN
[SOURCE: Wall Street Journal, AUTHOR: Martin Peers]
For most media-company chief executives, the costly acquisitions of the 1990s and early 2000s were an object lesson. After the unwinding of such high-profile combinations as AOL-Time Warner and Viacom-CBS, few CEOs have been willing to buy anything big except their own stock. One prominent exception: Comcast CEO Brian Roberts. His $16.7 billion deal to buy the 49% stake in NBCUniversal still held by General Electric only two years after buying the first 51% and 18 months sooner than expected, is the biggest U.S. media acquisition in about five years. And when the purchase of the initial stake is included, according to Dealogic, it is the largest purchase since 2001, when Comcast became the biggest cable operator by buying AT& cable systems for $60.7 billion. "We have had an articulated strategy going back 20 years, maybe even longer," says Mr. Roberts. Initially, "we wanted to get bigger in distribution," he says, but after noticing how content gained value with new technologies, the company decided to diversify. The deals have turned Comcast—founded by Roberts's father, Ralph, in 1963—into the biggest media company in the U.S. by market capitalization, at about $106 billion. Along the way it also has become the most vertically integrated, owning 25 TV stations, cable systems serving 22 million subscribers, Universal film studio, the NBC broadcast network and several big cable networks.
benton.org/node/145041 | Wall Street Journal
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COMCAST CONTENT TO DIVERSIFY
[SOURCE: Wall Street Journal, AUTHOR: Miriam Gottfried]
Comcast aims to secure for its shareholders the full rewards of a turnaround at NBCU before the division's success drives up its value. Comcast is also motivated by low interest rates, making cash a poor asset to hold and additional debt cheap to raise. It is using $11.4 billion of cash on hand, $4 billion of seller financing from GE, $2 billion of borrowings and $725 million of preferred stock. This will push its net debt to $48 billion, up from $29.5 billion at the end of the fourth quarter. For Comcast, which said it would raise its dividend by 20% and repurchase $2 billion of stock in 2013, this is a significant shift. But even adjusting for the additional debt, its leverage ratio will be 2.4 times trailing Ebitda—significantly lower than the 3.25 leverage ratio that competitor Time Warner Cable has targeted. Moreover, Comcast has said it aims to bring that ratio down to a range of 1.5 times to two times over the next few years. Including expected higher capital expenditures in the cable business and at NBCU's theme parks, the company could feasibly cut its net debt to about $44 billion, or about 2.1 times, by the end of 2013, Maxim Group estimates. The securities firm reckons Comcast should generate about $9.4 billion of free cash flow in 2013, up from $7.9 billion in 2012.
benton.org/node/145040 | Wall Street Journal
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STELA!
[SOURCE: House of Representatives Commerce Committee]
The House Commerce Committee’s Communications and Technology Subcommittee held a hearing on February 13 to begin deliberation on whether or not to reauthorize, revise, or let expire the Satellite Television Extension and Localism Act (STELA), the law that governs how satellite companies offer broadcast television programming. Some provisions next sunset December 31, 2014. The hearing only hinted at the contentiousness that could come as the expiration date gets closer. Satellite operators want Congress to wade into retransmission consent, leveling the playing field, they say, as part of the reauthorization, while broadcasters say leave it alone. Several legislators suggested a broader look might be required given the changes in how viewers access content. In teeing up the hearing, Subcommittee Chairman Greg Walden (R-OR) suggested everything was still on the table, from a "clean" reauthorization -- essentially just changing the date -- to expanding its scope or letting the compulsory license expire.
benton.org/node/145026 | House of Representatives Commerce Committee | Broadcasting&Cable | AdWeek
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FREE TV?
[SOURCE: MediaPost, AUTHOR: Wayne Friedman]
Paying for "free TV" has never been more confusing. Ninety percent of the country has had its behavior changed forever in this regard. You want TV? You really have to pay for it -- any of it. Aereo believes that $12 a month for essentially over-the-air TV channels doesn't amount to much for consumers, and is thus a decent business. It's about as free as you can get, especially when looking at average monthly cable, satellite or telco bills of $100 to $125 a month. The U.K. and other countries have a tax or license that everyone pays when buying a TV set. In many countries, this existed before the digital age, even before the cable TV age. In this country, there's no such thing in theory. For a long time, we were told free TV just meant we had to watch some commercials. How can Aereo sell its service in the future? Maybe with this line: "Get TV nearly free." Maybe these executives could work with Dish Network's Hopper unit marketing guys and their revolutionary thinking: "Watch TV with no commercials!" Still, not everyone is conditioned to spend more money on TV. Though 90% of U.S. TV viewers pay for cable, satellite or telco on a monthly basis, Aereo believes only 70% of the U.S. population is actually happy about it. That means 20% is available for picking, and thus makes a nice business. Mind you, Comcast, Time Warner and others have started low-cost TV packages of their own on the order of $15 or $20 a month.
benton.org/node/145009 | MediaPost
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MORE ON INTERNET/BROADBAND

COMCAST FILING
[SOURCE: Public Knowledge, AUTHOR: Harold Feld]
[Commentary] Commenters in the Federal Communications Commission’s Phone Network to IP transition docket paid lip service to the idea that we ought to have at least some kind of regulation. Whether it’s a general nod to a “minimal and light touch regulatory regime” or a specific shopping list, the vast majority of commenters recognized that when you have something as big, complicated and utterly essential to people’s lives as the phone system, you need some kind of basic backstop for people to feel comfortable and to address problems that will invariably come up. Everyone, that is, except Comcast. Comcast, and Comcast alone, thinks we can manage the phone system as the Libertarian Nirvana. This smacks either of unbelievable hubris (“we’re so big everyone will have to deal with us – what could go wrong?) or an incredible sense of market power (“we’re so big everyone will have to deal with us – heh heh heh”). Either way, this sends chills down my spine, because both signal loud and clear that Comcast – one of the largest providers of residential phone service in the United States, the largest residential broadband provider, and the single most powerful entity in U.S. telecom policy – simply doesn’t get it when it comes to the future of the phone system. The thing that everyone else recognizes, and Comcast apparently still doesn’t, is that this has to work for everyone, including places Comcast doesn’t serve and doesn’t want to serve. It’s sad that Smalltown America doesn’t have broadband, unless they can find a convenient McDonalds or Starbucks.
benton.org/node/145042 | Public Knowledge
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USPS PARTNERSHIP WITH RURAL CARRIERS
[SOURCE: United States Postal Service, AUTHOR: ]
In order to provide new digital services, reduce costs, and improve access, some international postal operators are using hybrid delivery networks that combine traditional physical mail delivery with digital delivery. Such networks allow a postal operator to cut costs by reducing the number of days that it physically delivers mail, while providing customers 24/7 digital access to postal services through computers or handheld devices. The U.S. Postal Service does not currently have such a hybrid physical/digital delivery network. If it decides to pursue one however, the Postal Service will likely face particular challenges in providing adequate service in rural areas. Some rural customers cannot use the Internet as a communications channel, as service in their communities is either unavailable or too costly. This issue brief describes one possible approach to addressing this problem: a partnership between the Postal Service and rural telecommunications companies to establish a digital postal network and ensure adequate digital access in rural areas.
benton.org/node/145019 | United States Postal Service
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SPECTRUM/WIRELESS

BRIEFING ON GOVERNMENT SPECTRUM USE
[SOURCE: Multichannel News, AUTHOR: John Eggerton]
Senate Commerce Committee Chairman Jay Rockefeller (D- WV) said he plans to hold a classified briefing with government agencies to better understand how they are using their radio spectrum. Chairman Rockefeller and ranking member John Thune (R-SD) are "working right now on setting up a classified briefing for Members that will help us understand how the military, law enforcement, and the intelligence community currently use spectrum that is reserved for the government."
benton.org/node/145024 | Multichannel News
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FCC MEETING AGENDA
[SOURCE: Federal Communications Commission, AUTHOR: ]
The Federal Communications Commission will hold an Open Meeting on Wednesday, February 20, 2013. The FCC will consider:
A Report and Order to significantly enhance wireless coverage for consumers, while protecting wireless networks from interference, by adopting new technical and operational requirements for signal boosters.
A Notice of Proposed Rulemaking to substantially increase the amount of unlicensed spectrum available to accelerate the growth and expansion of new Wi-Fi technology offering consumers faster speeds and less network congestion at Wi-Fi hot spots.
benton.org/node/145010 | Federal Communications Commission
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CONTENT

HIGH STAKES FOR APPLE
[SOURCE: Reuters, AUTHOR: Andrew Longstreth]
As the only remaining defendant in the U.S. government's e-books antitrust case, Apple appears headed for a high-stakes trial that could significantly increase company's liability in related litigation. Apple faces a June 3 trial date over civil allegations by the U.S. Department of Justice that it conspired with five publishers to raise the price of e-books and to fight the dominance of Amazon. At the Apple trial, to be overseen by U.S. District Judge Denise Cote in Manhattan, the Justice Department will seek not monetary damages but a judicial decree that Apple violated antitrust law, court papers said. Among other things, government lawyers want the judge to issue an order enjoining Apple from engaging in any conduct similar to that alleged in the case. Such a judgment could make Apple vulnerable to steep damages in related litigation.
benton.org/node/145030 | Reuters
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WHY GOOGLE PAYS APPLE $1 BILLION A YEAR
[SOURCE: The Atlantic, AUTHOR: Rebecca Greenfield]
Google is expected to pay an estimated $1 billion to Apple in 2014 to keep its search engine as the default on iOS devices because, well, Google makes a huge portion of its mobile revenue from iPhones and iPads — enough to make rivalries disappear. Last year, Google paid $417 million for the exclusive search rights, up from just $82 million in 2009. Given the monster growth track of Apple devices, as well as the per-device rate Apple charges Google for prime search real estate, the exclusivity cost is expected to double over the next two years. And even though it seems a strange partnership for the sometimes rivals — they're competing over phone software, and Google's results show up in Apple's competing browser — the iPhone and iPad business is lucrative enough for Google's search advertising business that it might even be considered a steal.
benton.org/node/145008 | Atlantic, The
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PRIVACY

TRACKING YOU ON SOCIAL MEDIA
[SOURCE: San Francisco Chronicle, AUTHOR: Editorial staff]
[Commentary] Most users of social networking sites give little thought to the data trail they leave behind. They may not realize that the pictures they post, the comments they make and the people they associate with can provide a revealing portrait about where they go and what they like to do. The potential this offers to covertly track individuals has not gone unnoticed or unexploited. Defense contractor Raytheon - maker of the Patriot missile defense - has developed sophisticated software that can collect, collate and analyze public data that people leave on sites such as Facebook, Twitter, Gowalla and Foursquare. Even a photo taken from a smartphone contains more than an image: It contains the GPS coordinates of exactly where the photo was taken - data that Raytheon can retrieve.
benton.org/node/145038 | San Francisco Chronicle
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POLICYMAKERS

FCC’S INTERGOVERNMENTAL ADVISORY COMMITTEE
[SOURCE: Federal Communications Commission, AUTHOR: Public Notice]
The Federal Communications Commission seeks nominations to replace a municipal official member and a Tribal member on the Commission’s Intergovernmental Advisory Committee (IAC). The IAC, comprised of 15 representatives from local, state, and Tribal governments, advises the Commission on a range of telecommunication issues for which their governments explicitly or inherently share responsibility or administration with the FCC. The term of operations of the reauthorized IAC is two years, with an option for another two year term. The current IAC term commenced with its first meeting on December 2, 2011 and will conclude in December 2013. One of the four municipal representatives and one of the three Tribal representatives are no longer members of the IAC. The FCC therefore seeks nominations for a fourth elected municipal official representative and a third elected or appointed Tribal representative to replace the departed members.
benton.org/node/144995 | Federal Communications Commission
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STORIES FROM ABROAD

CHINA’S FIREWALL
[SOURCE: Wall Street Journal, AUTHOR: Paul Mozur, Carlos Tejada]
Experts say the blocks that keep Chinese users from accessing services like Facebook, Twitter and Google’s online-video unit YouTube, are hurting businesses, slowing their traffic and hindering their use of a new generation of cloud-computing services like those offered by Google. Akamai Technologies, which provides services to help websites speed up connections, says China's average connection speed ranked 94th globally in last year's third quarter, well behind Asian rivals like Malaysia, at No. 71, and Thailand, at No. 58. The American Chamber of Commerce in China said last year that nearly three-quarters of about 300 businesses it surveyed said unstable Internet access impedes their efficiency. About 40% said China's censorship efforts have a negative business impact. Analysts say one of the main problems for business is that the Great Firewall, the nickname for China's Internet-censoring and filtering technology, kicks in every time a computer in China tries to access a website abroad, slowing down the connection. The government also has failed to build infrastructure that would allow for quicker connections overseas, said David Wolf, a managing partner for the China practice of market consulting firm Allison+Partners.
benton.org/node/145033 | Wall Street Journal
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4G SPEEDS
[SOURCE: GigaOm, AUTHOR: Kevin Fitchard]
Sweden was the first country to launch an LTE network, and it retains plenty of bragging rights. According to a study by U.K. network-testing firm OpenSignal, Sweden has the fastest 4G networks in the world, averaging download speeds of 22.1 Mbps. The U.S. was the second country to deliver commercial LTE networks on the world stage, but it ranks far lower in terms of 4G bandwidth delivered. OpenSignal found that networks in Hong Kong, Denmark, Canada, Australia, South Korea and Germany all performed better. The U.S. placed eighth, averaging downlink speeds of 9.6 Mbps. Why the low scores? It probably has to do with the configuration of U.S. carriers’ networks. While most operators around the world secured 40 MHz of spectrum with which to launch their new 4G networks, U.S. carriers have been working with smaller swatches of airwaves. Verizon and AT&T are using 20 MHz for their initial rollouts, while Sprint and MetroPCS are dealing with as little as 10 MHz. If you’re working with half the spectrum, your connections will sport half the bandwidth.
benton.org/node/145032 | GigaOm
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[Commentary] Commenters in the Federal Communications Commission’s Phone Network to IP transition docket paid lip service to the idea that we ought to have at least some kind of regulation. Whether it’s a general nod to a “minimal and light touch regulatory regime” or a specific shopping list, the vast majority of commenters recognized that when you have something as big, complicated and utterly essential to people’s lives as the phone system, you need some kind of basic backstop for people to feel comfortable and to address problems that will invariably come up. Everyone, that is, except Comcast.

Comcast, and Comcast alone, thinks we can manage the phone system as the Libertarian Nirvana. This smacks either of unbelievable hubris (“we’re so big everyone will have to deal with us – what could go wrong?) or an incredible sense of market power (“we’re so big everyone will have to deal with us – heh heh heh”). Either way, this sends chills down my spine, because both signal loud and clear that Comcast – one of the largest providers of residential phone service in the United States, the largest residential broadband provider, and the single most powerful entity in U.S. telecom policy – simply doesn’t get it when it comes to the future of the phone system. The thing that everyone else recognizes, and Comcast apparently still doesn’t, is that this has to work for everyone, including places Comcast doesn’t serve and doesn’t want to serve. It’s sad that Smalltown America doesn’t have broadband, unless they can find a convenient McDonalds or Starbucks.


Comcast's Very Scary PSTN Filing
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For most media-company chief executives, the costly acquisitions of the 1990s and early 2000s were an object lesson. After the unwinding of such high-profile combinations as AOL-Time Warner and Viacom-CBS, few CEOs have been willing to buy anything big except their own stock. One prominent exception: Comcast CEO Brian Roberts.

His $16.7 billion deal to buy the 49% stake in NBCUniversal still held by General Electric only two years after buying the first 51% and 18 months sooner than expected, is the biggest U.S. media acquisition in about five years. And when the purchase of the initial stake is included, according to Dealogic, it is the largest purchase since 2001, when Comcast became the biggest cable operator by buying AT& cable systems for $60.7 billion. "We have had an articulated strategy going back 20 years, maybe even longer," says Mr. Roberts. Initially, "we wanted to get bigger in distribution," he says, but after noticing how content gained value with new technologies, the company decided to diversify. The deals have turned Comcast—founded by Roberts's father, Ralph, in 1963—into the biggest media company in the U.S. by market capitalization, at about $106 billion. Along the way it also has become the most vertically integrated, owning 25 TV stations, cable systems serving 22 million subscribers, Universal film studio, the NBC broadcast network and several big cable networks.


Comcast: All In for NBC
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Comcast aims to secure for its shareholders the full rewards of a turnaround at NBCU before the division's success drives up its value. Comcast is also motivated by low interest rates, making cash a poor asset to hold and additional debt cheap to raise.

It is using $11.4 billion of cash on hand, $4 billion of seller financing from GE, $2 billion of borrowings and $725 million of preferred stock. This will push its net debt to $48 billion, up from $29.5 billion at the end of the fourth quarter. For Comcast, which said it would raise its dividend by 20% and repurchase $2 billion of stock in 2013, this is a significant shift. But even adjusting for the additional debt, its leverage ratio will be 2.4 times trailing Ebitda—significantly lower than the 3.25 leverage ratio that competitor Time Warner Cable has targeted. Moreover, Comcast has said it aims to bring that ratio down to a range of 1.5 times to two times over the next few years. Including expected higher capital expenditures in the cable business and at NBCU's theme parks, the company could feasibly cut its net debt to about $44 billion, or about 2.1 times, by the end of 2013, Maxim Group estimates. The securities firm reckons Comcast should generate about $9.4 billion of free cash flow in 2013, up from $7.9 billion in 2012.


Comcast Is Content to Diversify
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On television, President Barack Obama spent a commercial-free hour delivering his State of the Union speech. But on Twitter, the nation’s biggest lobbying groups and corporations found a megaphone to place ad money and promote their views.

The National Rifle Association, AARP, Chevron and Microsoft bid for top placement of 140-character tweets aimed at spreading their policy and political positions and marketing their products. Ahead of the event and during it, they competed in Twitter’s behind-the-scenes advertising auction that gave prominent display to winners who wanted to get their tweets in front of the legions of users who were searching for information related to Obama’s speech. The NRA’s Institute for Legislative Affairs won the most coveted keyword — “#SOTU” — so that people who searched for that term saw the gun group’s “sponsored tweet” pop up at the top of their personal feeds: “@BarackObama gives good speeches, but how would his gun policies actually work? Don’t be fooled by #SOTU.”


Twitter: A live megaphone for lobbying groups, companies