October 19, 2012 (Stanford Ovshinsky)
BENTON'S COMMUNICATIONS-RELATED HEADLINES for FRIDAY, OCTOBER 19, 2012
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WIRELESS/SPECTRUM
How Antitrust Enforcement And Pro-Competitive Regulation Encourage Investment, Innovation, and Spectrum Efficiency - analysis
FCC Official Downplays Spectrum Estimates From Auctions
Wait, now Sprint wants to control Clearwire?
AT&T sounds alarm over Sprint's Clearwire deal
Softbank CEO Won't Rule Out MetroPCS Bid
AT&T shoots for 2015 launch of new LTE network [links to web]
INTERNET/BROADBAND
FCC plan to bring high-speed Internet to rural areas could slow it down
CYBERSECURITY
Holes in US cyber security - editorial
Banks Pushed to Clear Fog of Cyberwar [links to web]
Meet the Feds Who are Defending You Online [links to web]
Small Biz Cyber Planner 2.0 - press release [links to web]
New "Surveillance-Proof" App To Secure Communications Has Governments Nervous [links to web]
MEDIA AND ELECTIONS
TV Stations Getting Rich From Misleading Super PAC Ads, Watchdog Group Says
Voters: TV Key To Political Choices [links to web]
States Reap Big Bucks In Tight Political Races [links to web]
GOP Super PAC Puts Facebook Users in Custom Ads [links to web]
Nate Silver, Media Critic [links to web]
OWNERSHIP
Apple loses appeal, has to buy ads in Britain to apologize to Samsung [links to web]
In post-trial battles with Samsung, Apple fights to keep documents sealed [links to web]
CONTENT
Twitter Censors Users for the First Time
Twitter, Reddit and the battle over free speech
Catching Up, Not Cord Cutting, Drives Increase in Content Streaming: Study [links to web]
Chicago Tribune to set pay wall at $14.99 per month [links to web]
Newsweek to Become Online-Only After 80 Years in Print [links to web]
In New York, Broadcasters Fight for Piece of Digital Pie [links to web]
US Programmers Make Bids for Barclays Premier League Rights [links to web]
For CBS Chief, It's About Survivors [links to web]
GOVERNMENT & COMMUNICATIONS
Study: Government Websites Fall Short [links to web]
State Department Seeks System to Track Diplomats Through Cell Phone Signals [links to web]
Sprint rules out using Huawei equipment [links to web]
POLICYMAKERS
House Commerce Committee Counts Incentive Auctions Among 3rd Quarter Accomplishments [links to web]
Stanford Ovshinsky, a Self-Taught Maverick in Electronics [links to web]
STORIES FROM ABROAD
Mobile groups face India spectrum fee [links to web]
Clarke open to new law to regulate press in UK [links to web]
MORE ONLINE
Men at MSNBC make more money [links to web]
WIRELESS/SPECTRUM
ANTITRUST ENFORCEMENT
[SOURCE: Tales of the Sausage Factory, AUTHOR: Harold Feld]
[Commentary] In the past month, to the complete surprise of just about every analyst and industry watcher, foreign investors spent the equivalent of $25 billion to invest in competing carriers T-Mobile and to acquire control of Sprint and ClearWire. AT&T has announced a whole bunch of network upgrades such as repurposing its 2G spectrum, clearing up the interference in the WCS band, and a seemingly endless stream of license acquisitions. While the last is perhaps not so unusual, U.S. Cellular has likewise been spending money to cobble together a broader footprint using the less—than—stellar—but—better—than–nothing 700 MHz A block. Quite a turnaround from the start of 2011, when the industry appeared on a glide-path for a duopoly. So what happened? The Department of Justice (DOJ) and the Federal Communications Commission (FCC) have made clear over the last two years that (a) we will have 4 national carriers, and (b) the FCC cares about ensuring enough spectrum access to keep Sprint and T-Mobile (and hopefully other competitors) viable. Contrary to all conventional wisdom, two years of FCC regulation like data roaming and special access reform, combined with antitrust enforcement around AT&T/T-Mo and Verizon/SpectrumCo, stimulates investment in the wireless industry and forces companies like AT&T and Verizon to get serious about developing the spectrum they need and ditching the spectrum they don’t need on the secondary market.
benton.org/node/137487 | Tales of the Sausage Factory
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SPECTRUM AUCTION ESTIMATES
[SOURCE: National Journal, AUTHOR: Juliana Gruenwald]
A key Federal Communications Commission official in charge of helping to implement incentive auction legislation downplayed initial estimates about how much spectrum could come out of the process. During a speech at the Media Institute, Gary Epstein, a senior adviser and co-leader of the FCC's incentive auction task force, discussed the FCC's proposal to implement the incentive auction authority provided by Congress as part of payroll tax legislation passed in February. The incentive auctions are aimed at enticing broadcasters to give up some of their spectrum or agree to share spectrum with another TV station. That spectrum would then be auctioned to wireless providers, who say they need more spectrum to meet the nation's growing demand for wireless technologies. When asked whether FCC officials were backing away from the agency’s 120 megahertz goal, Epstein said that he was "not in the business of estimating" how much spectrum the process would yield. "It's a market-based decision," he said. "Our real job is to make the reverse auction understandable and make it easier for folks to participate."
benton.org/node/137490 | National Journal | B&C
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NOW SPRINTS WANTS CLEARWIRE?
[SOURCE: GigaOm, AUTHOR: Kevin Fitchard]
After four years of keeping Clearwire at arm’s length, Sprint apparently feels it’s time to step in and take the struggling 4G carrier under its wing. The idea was that Clearwire as an independent company would attract outside investors and build a big honking 4G network. Sprint would get all of the benefit of that network without having to foot the bill. Well, that didn’t happen. Clearwire’s nationwide rollout stopped after it got a third of the country covered, and it’s been in a holding pattern ever since. Instead of re-upping its investment in Clearwire, Sprint spent just enough to keep it afloat and then launched its own LTE network. Talk about a dysfunctional relationship. Why would Sprint be suddenly interested in taking control over the partner it’s been jilting for years? Sprint is required to do so make good on its deal with Softbank. Softbank and Clearwire have a lot in common due to their 4G technology choices, but not necessarily enough in common to justify buying Clearwire outright. Maybe this option – if it proves to be true – splits the difference.
benton.org/node/137467 | GigaOm
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AT&T SOUNDS ALARM ON SOFTBANK-SPRINT
[SOURCE: The Hill, AUTHOR: Brendan Sasso]
AT&T is urging regulators to take a close look at Sprint's recent deals with Softbank and Clearwire. AT&T began sounding alarm that a foreign company could soon control large chunks of the nation's airwaves. "Softbank's acquisition of Sprint and the control it gains over Clearwire will give one of Japan's largest wireless companies control of significantly more U.S. wireless spectrum than any other company," said Brad Burns, an AT&T vice president. "We expect that fact and others will be fully explored in the regulatory review process. This is one more example of a very dynamic and competitive U.S. wireless marketplace, which is an important fact for U.S. regulators to recognize."
AT&T is currently looking to gain government approval of its own smaller spectrum deals with companies including NextWave, Comcast and Horizon. AT&T's statement could be seen as putting pressure on the Federal Communications Commission to approve its deals if the commission also allows Softbank to take over Sprint and Clearwire.
benton.org/node/137481 | Hill, The | The Verge | National Journal
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SOFTBANK-METROPCS?
[SOURCE: Wall Street Journal, AUTHOR: Daisuke Wakabayashi, Anton Troianovski, Anupreeta Das]
The chiefs of Softbank and Sprint Nextel are focused on closing their $20 billion deal, but said they may pursue mergers with other wireless carriers if opportunities present themselves. Softbank chief Masayoshi Son wouldn't rule out making a competing bid for MetroPCS Communications, which has agreed to combine with T-Mobile USA. "We shouldn't rule out any opportunity or alternative," said Son. Sprint Chief Executive Dan Hesse said a merger between Sprint and No. 4 carrier T-Mobile USA was possible in the long term, but that Sprint for now was focused on overhauling its network and closing the deal with Softbank. He argued that a merger between the No. 3 and No. 4 carriers could be good for consumers by creating a more formidable competitor to market leaders Verizon Wireless and AT&T.
benton.org/node/137508 | Wall Street Journal | additional link
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INTERNET/BROADBAND
CONNECT AMERICA FUND
[SOURCE: KTIV, AUTHOR: Jacqueline Quynh]
Heath Mallory works at Western Iowa Telephone, a small independent phone company. He says recent plans by the Federal Communications Commission to make high-speed Internet access available in rural areas could also slow it down. That's because, if these FCC changes cause Western Iowa Telephone to lose money, they may not be able expand and maintain their rural broadband service. "What we're primarily concerned with is, carriers that have used our networks in the past are no longer going to be forced to pay us to use our network and what that means is our end user customers, our telephone customers, our cable TV customers, our Internet customers are going to have to pay higher rates" Mallory said. So, how does this affect pricing changes? The FCC tells us the old system of compensating phone companies for processing calls from other phone companies was becoming ineffective, especially as people started making calls using broadband connections. In some areas fees varied greatly. The FCC issued a release, explaining these changes. "The Connect America Fund is designed to expand broadband access to the 19 million rural Americans who lack it -- including over 200,000 rural Iowans -- while at the same time increasing fiscal responsibility in order to be fair to the consumers and small businesses nationwide who pay into the fund." That means, for some rural locations where subsidies artificially lowered phone service, bills could go up. Western Iowa Telephone is currently evaluating a possible rate increase as a result of the FCC's changes. Mallory says one option you have before his company raises rates is to write to your local representative.
benton.org/node/137453 | KTIV
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CYBERSECURITY
US CYBERSECURITY
[SOURCE: Los Angeles Times, AUTHOR: Editorial staff]
[Commentary] The US Chamber of Commerce’s opposition to cybersecurity legislation in the Senate didn't square with the actual provisions of the bill, which addressed most of its stated concerns. The best practices it promoted would have set security goals, but businesses would have decided what techniques to use to meet them. Any business that complied with these practices would have been immune to punitive damages if customers sued them in the event of a successful cyberattack, which is a sensible incentive to participate. Business groups are backing a bipartisan House bill that deals only with information-sharing among companies and the federal government, not the vulnerability of critical infrastructure, which is at least as large a problem. Sec of Defense Leon Panetta's speech makes it clear that the private sector isn't doing enough to gird itself against the threats it faces, and that the potential consequences could be devastating. Senate Majority Leader Harry Reid (D-NV) has pledged to take up the cyber-security bill again in November, after the election, and lawmakers should enact a bill along the lines of the Senate bill blocked by Republicans in August. Failing that, President Barack Obama should issue an executive order to promote voluntary cyber-security standards and information-sharing within the limits of current law. That's not the ideal approach, but it's a start.
benton.org/node/137511 | Los Angeles Times
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MEDIA AND ELECTIONS
TV STATIONS PROFIT FROM MISLEADING ADS
[SOURCE: The Wrap, AUTHOR: Doug Halonen]
Television stations are getting rich by airing political ads from Super PACs and other outside groups that station officials know are misleading, Free Press charged. The group asked the public to protest the broadcast industry's refusal to check facts in ads sponsored by independent political groups during the current election cycle. Under the law, broadcasters are legally obliged to run ads from political candidates themselves, even when those spots include blatant falsehoods. But the law says that broadcasters can reject deceptive ads from Super PACs and other groups not directly affiliated with candidates. “The problem is not a lot of stations are doing that,” said Timothy Karr, Free Press senior director of strategy. To combat the misinformation, Free Press is asking the public to weigh in, and Free Press has volunteered to deliver the messages to the Big 4 TV network affiliated stations in the top 50 markets, where most of the political ad dollars are being spent. “Our campaign hopes to convince stations to do the right thing by connecting them with many of the outraged viewers in their markets,” Karr said.
benton.org/node/137505 | Wrap, The
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CONTENT
TWITTER CENSORS USERS FOR THE FIRST TIME
[SOURCE: The Atlantic, AUTHOR: Adam Clark Estes]
For the first time ever, Twitter censored a controversial account at the request of local government earlier this week. It was run by neo-Nazis. The ban, which is the first of its kind under a relatively new Twitter policy that gives the company "the ability to reactively withhold content from users in a specific country -- while keeping it available in the rest of the world." As such, the ban is only effective in Germany. The rest of the world is free to follow the bigots.
benton.org/node/137469 | Atlantic, The | LATimes
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TWITTER, REDDIT AND FREE SPEECH
[SOURCE: GigaOm, AUTHOR: Mathew Ingram]
Where should freedom of speech begin and end when you are a web-based entity with a global audience? That’s the question raised by a couple of recent events, including the furor over a Reddit moderator’s creepy behavior, and now the news that Twitter has blocked an account for the first time at the request of a state government — in this case Germany, which asked the service to take action against a Twitter user posting neo-Nazi sentiments, something that is forbidden by the laws of that country. As the web and social tools become more mainstream, these kinds of battles over the limits that should apply to free speech are only going to become more frequent, but the solution to them remains elusive at best.
benton.org/node/137468 | GigaOm
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