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Nov 5, 2009 (Damn Yankees Win)

OK, fellow baseball fans, we have 151 days to catch up on our sleep. http://bit.ly/2lmqur

BENTON'S COMMUNICATIONS-RELATED HEADLINES for THURSDAY NOVEMBER 5, 2009

The Senate Judiciary Committee may approve a shield law today and ITIF hosts a discussion on boosting broadband demand. http://bit.ly/28QGJk


JOURNALISM
   Protection for whistle-blowers, journalists aids your right to know
   A bill to protect journalists' sources gets better
   Shield law makes it harder to fight crime, protect national security

OWNERSHIP
   Broadcasters To FCC: Digital Age Increasing Competition, Ownership Rules Harmful
   Ferree: Ownership Deregulation Not Enough
   Comcast-NBC Deal: Gaining Few Assets With NBC Name?
   See also: Comcast Sees Economy Stabilizing
   See also: Comcast Fires Up WiMax In Philly
   Media Deals: Why They Fail
   Studios and theaters clash over FCC waiver

BROADBAND/INTERNET
   Groups Ask FCC To Deny 'Special Favor' That Would Let Hollywood Control Consumer TVs
   Applicants For Stimulus Funds Should Expect A Long Wait; ACORN Deemed Ineligible
   Internet censorship liable to WTO challenge
   Social Isolation and New Technology
   NRB: Spectrum Reclamation Could Be 'Unholy Sacrifice'
   Net revolution - and rerun
   Internet access 'right' plan dropped
   Target-Marketing Becomes More Communal

CONSUMER PROTECTION
   New York sues Intel over bullying, bribes
   CDD: Industry Self-Regulation Has Failed For Online Privacy
   Better Business Bureau Refers Comcast 'Fiber-Optic' Claim To FTC
   House Committee: ISPs Must Block Scam Sites
   FCC, DOT Combat Distracted Driving

POLICYMAKERS
   Misunderestimating Mignon Clyburn
   Department of Education announces new ed tech chief

MORE ONLINE ...
   Google's 3Q lobbying costs eclipse $1 million
   Verizon jacks up early cancellation fees on smart phones
   Foundation giving is expected to drop more than 10% in '09

Recent Comments:
Droid vs. iPhone: It's Really About the Carrier

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JOURNALISM

PROTECTION FOR WHISTLE-BLOWERS, JOURNALISTS AIDS YOUR RIGHT TO KNOW
[SOURCE: USAToday, AUTHOR: Editorial staff]
[Commentary] A lot of wrongdoing in government and elsewhere would remain hidden if honest insiders, who may fear going public, hadn't tipped off news reporters in exchange for promises of confidentiality. In recent years, these pledges have been under attack by federal prosecutors and private lawyers who've dragged a parade of journalists into court to try to force them to break their word. Judges have threatened some reporters with huge personal fines. Others have been thrown in prison. The more such tactics are used, the less willing people will be to talk to reporters — and the less the public will know. Now Congress appears close to agreement on legislation to make that sorry outcome less likely. Today, a key Senate committee is scheduled to take up a long-overdue "shield law" to protect reporters' ability to keep their promises to sources. Some Republican senators are trying to block the measure, just as a handful of opponents unsuccessfully tried to derail a similar proposal in the House last spring.
benton.org/node/29448 | USAToday
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A BILL TO PROTECT JOURNALISTS' SOURCES GETS BETTER
[SOURCE: Washington Post, AUTHOR: Editorial staff]
[Commentary] After proposing a federal media shield law that did little to protect the relationship between journalists and their sources, the White House has agreed with the Senate Judiciary Committee on a revised -- and much improved -- version of the Free Flow of Information Act. Under the latest proposal, in both civil and criminal cases the government (or another party seeking disclosure) would have to demonstrate that the confidential information it seeks from a journalist is "essential" to resolving the case and that it has exhausted all reasonable alternative sources. Judges would weigh the public interest in thorough newsgathering against the interest in disclosing the source. The balancing tests are calibrated depending on the nature of the case. In civil cases, the information seeker must make the case for disclosure. In criminal cases, journalists would have to make the case against disclosure. The balancing test also covers cases involving leaks of classified information (with the journalist again bearing the burden of proof), unless the information sought would be needed to stop a terrorist attack or "significant and articulable harm to national security," in which case disclosure would be compelled. As in previous versions, the statute would not protect anyone who is affiliated with a terrorist organization or who has been designated a terrorist by the federal government.
benton.org/node/29447 | Washington Post
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SHIELD LAW MAKES IT HARDER TO FIGHT CRIME
[SOURCE: USAToday, AUTHOR: Rep Steve King (R-Iowa)]
[Commentary] Unlike doctors, lawyers, psychiatrists and clergy, all of whom have established professional standards, journalists do not operate under specific guidelines or licensing. Over the years, this lack of an operating standard has resulted in the disclosure of national security secrets and has cost American lives. Passing a shield law would place a heavy burden on the Justice Department to demonstrate a compelling need for a reporter's source. However, the personal whims of federal judges handling these cases can stall or halt Justice's investigations. A shield law would also make it more difficult for law enforcement agencies to fight crime and protect our national security. While the proposed bill contains a limited number of exceptions where the shield law does not apply — such as preventing death, kidnapping or bodily harm — there are not specific exceptions for other sorts of crimes, such as combating child pornography and alien smuggling. This bill goes beyond promoting a free press by conferring a privileged position on the media. Shielding a profession that provides a watchdog role over government excesses but cannot be trusted to guard national secrets should not be a higher priority than protecting our country or solving crimes that can help save lives.
benton.org/node/29446 | USAToday
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OWNERSHIP

BROADCASTERS TALK MEDIA OWNERSHIP AT FCC
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
At the Federal Communications Commissions media ownership workshop on Wednesday, broadcasters said the digital age has produced a wealth of competition that ownership rules are preventing them from facing head on. David Barrett, president of Hearst Television, said that what was formerly the prospect of increased competition was now an "undisputed fact" that the FCC must take into account when deciding which of its rules were still necessary in the public interest. He said it was increasingly tough to finance the local news and public affairs programming and political coverage and provide emergency information -- information that cable and satellite did not provide -- and certainly not for free to anyone who wants or needs it. Barrett said the FCC should rightly be concerned about undue consolidation, but it must also be concerned about fostering and preserving local TV. He said broadcasters need to further consolidate to achieve economic efficiencies and compete more effectively with competitors like cable, satellite and the Internet, which are not subject to similar constraints. National Association of Broadcasters Executive VP Jane Mago said broadcasters were not looking to get rid of all ownership regulations, but that in light of the reality of competition, it must review the newspaper cross-ownership ban and local ownership rules. Mago's three main points were that the FCC recognize that allowing them to compete effectively was the best way to insure they are serving the public interest; that the FCC must base its review on the current level of competition and that the FCC base any judgment on evidence, not "unsupported claims." Representatives of minority broadcasters saw it rather differently.
benton.org/node/29436 | Broadcasting&Cable
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FERREE: OWNERSHIP DEREG NOT ENOUGH
[SOURCE: TVNewsCheck, AUTHOR: Harry Jessell]
Former Federal Communications Commission Media Bureau Chief Ken Ferree is now telling the FCC that it needs to do more than just relax broadcast ownership rules. "The FCC should abolish archaic broadcast speech restrictions so that broadcasters can compete with new media platforms that enjoy full First Amendment protection," he said. "Even more dramatically, Congress could recognize that broadcasters hold a property interest in their licenses and allow them to use their assigned spectrum in the most efficient manner as determined by free people interacting in free markets — or to trade or sell it to those who world." Now a senior Fellow at conservative think tank Progress and Freedom Foundation, Ferree portrayed broadcasting as being badly in need of help, as an "increasingly marginal player in the media world" that is attracting little interest from the financial community. How many stations one can own is no longer the question, he said. The question is "how will anyone sustain audiences substantial enough to pay for serious programming?"
benton.org/node/29435 | TVNewsCheck
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COMCAST-NBC
[SOURCE: MediaPost, AUTHOR: Wayne Friedman]
[Commentary] For weeks, Comcast's message has been clear: It wants TV content to match its distribution. But its real interest seemed to be those media assets that don't have NBC's brand attached. Rumors abound that Comcast has little interest in the NBC Network and NBC stations --- a point this column, along with others, has speculated about for some time. The current TV state of affairs id this: Universal Media Studios works not only because it can put programming on cable networks like USA Network, but because it also sells big broadcast network programs that still get higher advertising prices than they would on cable networks. Having strong broadcasting distribution platforms helps to amortize TV production and marketing costs. That's why "Law & Order: SVU" can help NBC -- and USA Network in reruns. To some extent, it would be better to keep the NBC network -- even in the short term -- and figure out a way to turn it into a cable network, now, before it loses any more steam. NBC should be more valuable on a per-subscriber fee basis than many broad-based cable entertainment networks. Even in its weakened state, NBC still offers big marketing support for any consumer brand -- including the Comcast brand.
benton.org/node/29423 | MediaPost
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MEDIA DEALS: WHY THEY FAIL
[SOURCE: BusinessWeek, AUTHOR: Tom Lowry]
Jonathan Knee argues that media executives have essentially tried to merge their way to excellence by "convincing the world there is something special and magical about media." Former cable executive and now partner of investment firm InterMedia Partners, Leo Hindery Jr says today's media executives are "mushy" and have "no soul, no vision....Can anybody tell me what the vision at Viacom is today?" On the possibility of a merger between NBC Universal and Comcast, Hindery said "both guys really need it," referring to (NBCU parent) General Electric CEO Jeff Immelt and Comcast CEO Brian Roberts. "Brian has the carryover (from the failed attempt to buy the Walt Disney Co.) and he can't lose another one." That said, Hindrey wouldn't predict whether the deal would be a success. In a closing shot, Hindery told Knee that after writing this book "you are never going to have another investment banking client again." Asked what media company has done a good job, Susan Lyne, the former CEO of Martha Stewart Omnimedia and currently CEO of Gilt Groupe, cast her vote for ESPN, which she says has "stayed true to its mission." But she did note that its one mistake was getting into restaurant business.
benton.org/node/29422 | BusinessWeek
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STUDIOS AND THEATERS CLASH OVER FCC WAIVER
[SOURCE: Los Angeles Times, AUTHOR: Richard Verrier]
The nation's theater owners and movie studios are once again at odds when it comes to the future distribution of movies. In regulatory filing Wednesday, the Motion Picture Association of America, the chief lobbying group for the major studios, restated its support for a waiver of current Federal Communications Commission rules that would clear the way for a technology that would allow consumers to watch movies at home close to or during their theatrical release. The so-called selectable output control technology would prevent the illegal copying of movies, which has been a major stumbling block to delivering first-run movies directly to consumers. Theater owners, however, don't see it that way. The National Association of Theater Owners is opposed to the waiver and reiterated its opposition. Theater owners are concerned that narrowing or collapsing the current window between when a movie hits theaters and when it comes on DVD or video-on-demand would cut into box office revenues and erode the quality of movies shown on the big screen. The current window is about four months.
benton.org/node/29445 | Los Angeles Times
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BROADBAND/INTERNET

NO SPECIAL FAVORS FOR HOLLYWOOD
[SOURCE: Public Knowledge, AUTHOR: Press release]
Thirteen public interest groups said the Federal Communications Commission should not respond to the "whims of industry" and grant the motion picture lobby the ability to control how consumers use their television sets and set-top boxes. As many as 20 million TV sets could be affected. According to the letter, the Commission's Media Bureau is poised to grant a waiver requested by the Motion Picture Association of America (MPAA) for what is called "selectable output control" that would shut down the types of devices consumers could plug into their TV sets. The MPAA has asked for a special waiver to existing FCC rules so that it can offer movies to consumers, while shutting down the output ports at the back of set-top devices through which equipment like TiVo or Sling Boxes can be connected.
benton.org/node/29430 | Public Knowledge | read the letter
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WAITING ON BROADBAND STIMULUS DOLLARS
[SOURCE: BroadbandCensus.com, AUTHOR: Winter Casey]
The Commerce Department's National Telecommunications and Information Administration will not announce who will receive the first broadband stimulus grants until at least mid-December, according to an NTIA spokeswoman. The agency then plans to announce more awardees on a rolling basis, she added. Once a recipient of the stimulus funding is named, the agency plans to complete all the required paperwork and deliver the funds within 60 days of the announcement. The only group that knows for certain that it won't be getting funds is the controversial ACORN Institute, which describes itself as a group that uses "research and training to address the problems in low-income communities identified through years of community organizing." Its applications have been deemed "ineligible for funding" by the NTIA. The ACORN Institutes de-funding is the result of guidance issued by the Office of Management and Budget to executive branch agencies cutting off funding to the Association of Community Organizations for Reform Now, or any of its affiliates, subsidiaries, or allied organizations.
benton.org/node/29427 | BroadbandCensus.com
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INTERNET CENSORSHIP LIABLE TO WTO CHALLENGE
[SOURCE: Reuters, AUTHOR: Jonathan Lynn]
Censorship of the Internet is open to challenge at the World Trade Organization as it can restrict trade in services delivered online, a forthcoming study says. A censorship case at the WTO could raise sovereignty issues, given the clear right of member states to restrict trade on moral grounds -- for example, by blocking access to child pornography websites. But a WTO ruling could set limits on blanket censorship and compel states instead to use more selective filtering, according to the study, to be published on Thursday by think-tank ECIPE. "Censorship is the most important non-tariff barrier to the provision of online services, and a case might clarify the circumstances in which different forms of censorship are WTO-consistent," said the study by Brian Hindley and Hosuk Lee-Makiyama.
benton.org/node/29437 | Reuters
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SOCIAL ISOLATION AND NEW TECHNOLOGY
[SOURCE: Pew Research Center's Internet & American Life Project, AUTHOR: Keith Hampton, Lauren Sessions, Eun Ja Her, Lee Rainie]
This report on the Pew Internet Personal Networks and Community survey adds new insights to an ongoing debate about the extent of social isolation in America. A widely-reported 2006 study argued that since 1985 Americans have become more socially isolated, the size of their discussion networks has declined, and the diversity of those people with whom they discuss important matters has decreased. In particular, the study found that Americans have fewer close ties to those from their neighborhoods and from voluntary associations. Sociologists Miller McPherson, Lynn Smith-Lovin and Matthew Brashears suggest that new technologies, such as the Internet and mobile phone, may play a role in advancing this trend. Specifically, they argue that the type of social ties supported by these technologies are relatively weak and geographically dispersed, not the strong, often locally-based ties that tend to be a part of peoples' core discussion network. They depicted the rise of Internet and mobile phones as one of the major trends that pulls people away from traditional social settings, neighborhoods, voluntary associations, and public spaces that have been associated with large and diverse core networks.
benton.org/node/29429 | Pew Research Center's Internet & American Life Project
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NRB: SPECTRUM RECLAMATION COULD BE 'UNHOLY SACRIFICE
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
The National Religious Broadcasters warns that broadcast spectrum "may become an unholy sacrifice to satisfy new mobile device spectrum needs." NRB says broadcasters have already given up an "enormous amount" of spectrum in the switch to digital, adding that he hoped the FCC was looking at "every avenue from which potential spectrum may come."
benton.org/node/29442 | Broadcasting&Cable
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NET REVOLUTION -- AND RERUN
[SOURCE: Boston Globe, AUTHOR: Peter Funt]
Thirty years ago the launch of CNN was keeping Ted Turner busy. ESPN was on the drawing board at Getty Oil. HBO was helping Time Inc. confirm that consumers would pay for television content. The emergence of cable and pay-TV programming marked an exciting and explosive stage in America's communications history. As we enter a similar period with digital technology, it's worth reviewing what was learned from the video revolution three decades ago. As cable reached critical mass, its situation was strikingly similar to that of the Internet. It was primarily a delivery system, capable of transmitting content to places where it had not been available, and in volume - "shelf space" as cable programmers termed it - that seemed almost limitless. Cable's early entrepreneurs faced the same fundamental challenge that Internet operators are struggling with today: how to get consumers to pay for content that historically had been free. The cable industry solved this problem in two clever ways - by chopping the content into small pieces and then by packaging many of those pieces together.
benton.org/node/29425 | Boston Globe
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INTERNET ACCESS 'RIGHT' PLAN DROPPED
[SOURCE: Financial Times, AUTHOR: Stanley Pignal]
Plans to make Internet access a "fundamental right" are to be dropped, a move that paves the way for European law enforcement agencies to cut off web users who have been caught downloading pirated films and music. The European parliament has agreed to drop an amendment that was aimed at countering so-called "three strikes" laws, legislation that allows law enforcement agencies to shut down Internet connections that have been allegedly used for illegal file-sharing. "Three strikes" laws are designed to protect copyright holders but have been criticized by civil liberties groups, concerned that they would allow governments to deny Internet access to citizens without going to court to prove wrongdoing. Activists had looked to the parliament to fight off such laws, and were thrilled when it voted through an amendment last May insisting that Internet disconnection could only go ahead with the approval of a judicial authority rather than an administrative body.
benton.org/node/29444 | Financial Times
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TARGET-MARKETING BECOMES MORE COMMUNAL
[SOURCE: Wall Street Journal, AUTHOR: Emily Steel]
Behind the scenes of a recent online shopping trip, Blue Kai , a startup company that collects Internet user data, was tracking when a Web surfer browsed for electronics on eBay, searched for cruises and checked out snowboards. It also tracked when a Web surfer researched Chevrolet sport utility vehicles on auto site Autobytel and priced flights to Durham, N.C., at travel site Expedia. After collecting that kind of information, Blue Kai groups Web visits into categories of consumers. It then immediately auctions off the data from some of the sites to marketers and Internet companies, which in turn use it for consumer research and ad personalization. The Web companies make money for selling the data about visitors to their sites, and Blue Kai takes a cut. The advertiser gets its coveted targeting. While the idea of target marketing has been around a long time, marketers until recently have had a hard time buying on enough Web sites to make the targeting truly effective.
benton.org/node/29443 | Wall Street Journal
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CONSUMER PROTECTION

NEW YORK SUES INTEL
[SOURCE: Washington Post, AUTHOR: Cecilia Kang]
New York Attorney General Andrew Cuomo filed a suit Wednesday against Intel for allegedly forcing or paying kickbacks to computer manufacturers to use their chips over those of rivals. The suit was filed in the US District Court of Delaware, and comes amid increased scrutiny over the company's business practices. AG Cuomo claims Intel got computer makers to a carry its chips in exchange for billions of dollars of payments masked as "rebates." The company also allegedly threatened to punish manufacturers that worked with Intel's competitors like AMD. Cuomo said Dell has taken $2 billion in "rebates" in 2006 from Intel to put the company's chips in its computers. Ed Black, president of the Computer & Communications Industry Association, said that Cuomo's 83-page suit outlined new evidence involving the rebates.
benton.org/node/29439 | Washington Post
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INDUSTRY SELF-REGULATION HAS FAILED FOR ONLINE PRIVACY
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
In a filing at the Federal Trade Commission, the Center for Digital Democracy and US PIRG argue that industry self-regulation has failed and existing regulations are out-of-date and in need of revamping. They have been pushing the commission for several years to drill deeper into the issue on online privacy and behavioral advertising, ad tracking and social media marketing, particularly its impacts on children and wider implications related to media consolidation. CDD has also called for a legislative ban on collecting from or targeting information to anyone under 18, a do-not-track list similar to the do-not-call list for telemarketers, and prohibiting the tracking or use of "sensitive" data on health, finances, ethnicity, sexual orientation, personal relationships or political activity to target marketing pitches."
benton.org/node/29434 | Broadcasting&Cable
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CAN COMCAST CLAIM FIBER-OPTIC NETWORK?
[SOURCE: Multichannel News, AUTHOR: Todd Spangler]
The National Advertising Division of the Council of Better Business Bureaus has referred Comcast's decision to not participate in the industry group's adjudication process involving the advertising claim that the company provides "fiber-optic network" services to the Federal Trade Commission for further review. The NAD, acting on a challenge by Verizon Communications, had requested substantiation from Comcast for the advertising claim that it delivers services over a "fiber-optic network." Verizon contends that Comcast, like virtually all cable companies, uses a hybrid fiber-coax (HFC) network rather than a pure fiber-to-the-home architecture as used by the telco's FiOS. Because Comcast uses coaxial cable to connect to subscribers' homes, the telco argues, Comcast cannot claim to employ a "fiber-optic network."
benton.org/node/29433 | Multichannel News
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ISPs MUST BLOCK SCAM SITES
[SOURCE: GigaOm, AUTHOR: Jordan Golson]
The House Financial Services Committee passed the Investor Protection Act which would require Internet service providers to filter fraudulent sites and e-mails that falsely claim to be from certain brokerage firms affiliated with the Securities Investor Protection Corporation (SIPC) if the ISP is "aware of facts or circumstances from which it is apparent that the material contains a misrepresentation." If the communications are not blocked, ISPs could be liable for damages.
benton.org/node/29431 | GigaOm
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COMBATING DISTRACTED DRIVING
[SOURCE: CongressDaily, AUTHOR: Andrew Noyes]
Transportation Secretary Ray LaHood and Federal Communications Commission Chairman Julius Genachowski announced Wednesday that they are launching a campaign to evaluate technologies that may help curb the dangerous epidemic of distracted driving. Their news came at a joint hearing of two House Commerce Committee panels where both Obama administration officials testified. The DOT-FCC partnership will also include outreach efforts to educate the public about the dangers of texting and taking on cell phones while driving and other behavior that can lead to accidents, according to a press release. Sec LaHood told lawmakers distracted driving "is costing lives and inflicting injuries across the nation's roads and railways. Chairman Genachowski said combining the resources of both agencies "can have a major impact on this problem."
benton.org/node/29426 | CongressDaily | FCC Chairman Genachowski | FCC/Dept of Transportation | House Committees
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POLICYMAKERS

MISUNDERESTIMATING MIGNON CLYBURN
[SOURCE: Washington Post, AUTHOR: Cecilia Kang]
Before Mignon Clyburn joined the Federal Communications Commission last July, she hadn't spent more than two weeks in a row outside of her native South Carolina. But that didn't stop some in Washington from thinking they had her figured out. Because she is the daughter of House Majority Whip Jim Clyburn (D-SC) and a long-time public utilities commissioner in the state capital of Columbia, lobbyists and a few public interest advocates speculated she'd favor the Bell companies on policy decisions. They said she had a steep learning curve and suspected her seat at the FCC was a political stepping stone. Commissioner Clyburn, 47, admits she has a lot to learn on the complexities of telecommunications and high-tech policy. But so far, she's proven her critics wrong on one crucial vote on net neutrality. And above everything, she wants people to know that she's not to be underestimated. There is much at stake and her true test will be on details of the net neutrality proposal and on the issues she will champion during her tenure. She's a crucial third Democratic vote in a five-member agency that's at the center of vexing regulatory decisions that will set the course on how consumers use the Web. Yet the true weight of any final rules will lie in crucial details. To what degree will wireless service providers be treated differently? How will the FCC define traffic management that prevents anticompetitive practices? How will the agency treat managed services, such as dedicated and secure bandwidth for telemedicine or video services? And will the rules extend beyond carriers to include content companies such as Google? It's unclear how Clyburn will vote on those narrow pieces of the policy. She's expressed strong support for FCC Chairman Julius Genachowski, but telecom industry executives are searching for clues to her thinking on specific slices of the controversial debate.
benton.org/node/29428 | Washington Post
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NEW TECH CHIEF AT DEPT OF ED
[SOURCE: eSchool News, AUTHOR: Maya Prabhu]
Karen Cator, former director of education leadership and advocacy for Apple and a long-time education technology leader, will serve as the new director of the Office of Educational Technology (OET) for the Department of Education. Cator served as chair of the Partnership for 21st Century Skills from September 2006 to September 2007. She also was in charge of technology planning and implementation in the Juneau, Alaska, school district before joining Apple in 1997. OET is responsible for coordinating the development and implementation of ED's education technology policies, research projects, and national technology summits. The office's main goal is to maximize technology's contributions to improving education. The announcement coincides with the development of a new National Education Technology Plan that will provide a vision for how information and communication technologies can help transform American education. The plan will provide a set of concrete goals that can inform state and local ed-tech plans, as well as inspire research, development, and innovation. A draft of the new plan is expected in early 2010.
benton.org/node/29432 | eSchool News
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