July 2008

Headline Highlights July 2008

Picnics, baseball, and mosquitos -- what else do you expect from relaxing summer months? Anyone expecting a summer lull may have been surprised by the fireworks displayed in telecommunications policy in July. Communications surveillance, media ownership, and Internet policy grabbed the headlines. Also, see July's most-read Headlines.

Senators want IOC to reverse Olympic censorship deal

Sens Sherrod Brown (D-OH) and James Inhofe (R-OK) called on the International Olympic Committee (IOC) to reverse an Internet censorship deal that it reportedly made with China. "Censorship is anathema to the very spirit of the Olympic Games, which celebrates diversity, emphasizes mutual respect and demands dispassionate, unadulterated representation of each competition," the two senators said in a letter to IOC President Jacques Rogge. "If Olympic hosts are permitted to curtail and manipulate information available to the Games' global audience, that breach of trust will inevitably undermine the credibility of the Olympics itself."

Boehner: Keep the Internet Free of New Washington Regulation

House Republican Leader John Boehner (R-OH) sent a letter to Federal Communications Commission Chairman Kevin Martin urging him to keep the Internet free of new Washington regulation. Saying the Internet has flourished because engineers, not regulators, have solved its problems, Rep Boehner writes, "Your heavy handed attempts to inject the FCC into the middle of that process threaten to hijack the evolution of the Internet to everyone's detriment. It will also deter the very broadband investment we need for the Internet to continue growing to meet the increasing demands being placed upon it." Rep Boehner also questions the FCC authority to enforce violations of its Internet policy principles. Public Knowledge President Gigi Sohn responded saying, "It is a shame that the harm Comcast has done to the Internet has not been appreciated by Leader Boehner. Rather than criticizing FCC Chairman Kevin Martin, Leader Boehner should praise him for putting a stop to a practice that technical experts have said is clearly outside the bounds of accepted Internet practice, while at the same time the FCC is acting to protect consumers."

Broadband Adoption and Not Availability is Key Challenge, Says One Economy

Although broadband is largely available in low-income communities in the United States, many of the poor do not see a reason to subscribe, said One Economy Vice President for External Affairs Alec Ross. For the first time in the history of telecom, adoption rates among the poor fell, said Ross. The Pew study reported that among adults living in households with annual incomes of less than $20,000 annually, the percentage dropped from 28 percent in March 2007 to 25 percent in April/May 2008. The decline in adoption is likely a result of the declining economy and a culture that causes many to worry about privacy and identity issues online, Ross said.

US national broadband policy: live or Memorex?

[Commentary] Life, Liberty and... the right to a broadband connection? In July, Federal Communications Commission member Michael Copps suggest broadband access should be considered a civil right. The commissioner's speech is an idea that's being reflected in the actions of some state, local and even federal government efforts to expand broadband availability. But while these efforts are encouraging, they are a far cry from what we really need: a national broadband policy that can bridge between the broadband haves and have nots. Part of this divide is attributed to the fact that many of the large service providers have a mentality that they can get more of a quicker return on investment (ROI) if they go after the more affluent communities. A national broadband policy in the U.S. could have a number of positive implications. For one, it could enhance the education experience in both affluent and poorer communities with greater Internet access and enhanced distance learning applications. In addition, having more expanded broadband capabilities could encourage more telecommuting and take more people off the roads. Unfortunately, such a broadband policy is more political ballyhooing that will likely continue as the fall presidential election nears.

Big Divide Found in Internet Access in NYC

According to a report released by the New York City's Broadband Advisory Committee, 26 percent of low income households have broadband connections at home compared to 54 percent in moderate-to-high income households. The lack of a computer and the high cost of broadband were the most often cited by residents for why they did not have a high-speed Internet connection in their home. Though DSL lines from Verizon and other providers are available in 87 percent of New York City addresses, 46.4 percent of New York City households have a broadband line. Usage varied widely by borough. The highest adoption rate was in Staten Island — 57.9 percent — followed by Manhattan at 55.7 percent. In Queens, 46.4 percent of homes have broadband connections, with Brooklyn (41.5 percent) and the Bronx (38.5 percent) bringing up the rear. Many of those without broadband at home still use the Internet, of course. One-third of the 1,140 residents surveyed said the public library is their sole source of Internet access. More than half of those surveyed without home Internet service used public library computers at least three times a week. The report did not say whether these residents logged onto the Internet in their workplace, or used mobile phones to send and receive e-mail messages, and check Web sites.

Senate IP bill set to advance

The Senate Judiciary Committee will consider Thursday the Enforcement of Intellectual Property Rights Act (S.3325), which was introduced only last week by Sens Patrick Leahy (D-VT), Arlen Specter (R-PA) and a bipartisan group of co-sponsors. Given the quick jump from introduction to mark-up -- and the fact that it was jointly introduced by the chairman and ranking member of the committee -- it's a fair bet the votes are there to pass it out of committee. If reported out on Thursday, it could presumably get to the Senate floor sometime in September, following Congress's August recess. Should it pass the full Senate, it would likely be paired with the PRO IP Act, which passed the House overwhelmingly in May. The biggest difference between the House and Senate bills, which presumably would have to be resolved in conference, is that that Senate version gives the Department of Justice authority to bring civil cases against alleged copyright infringers, which carry a lower burden of proof than criminal cases, the ordinary purview of the department. The idea has been a pet cause for Leahy, who first introduced it in 2004. Critics call that akin to turning the Justice Department into "an arm of the legal departments of the entertainment companies by authorizing DOJ to file civil lawsuits for infringement, forcing taxpayers to foot the bill."

MMTC Has Ear to Radio

The Minority Media & Telecommunications Council told the Federal Communications Commission in a filing that the single biggest boost it could give to minority ownership would be to migrate AM stations to "the promised land" of FM service on spectrum currently used for TV channels 5 and 6. That would triple the value of minority-owned radio stations, the group said. The MMTC also said it was "gravely concerned" about the commission's adoption of a "small-business" definition of the eligible entities that qualify for the FCC's diversity initiatives, some of which it has adopted and others it has put out for comment. The group would prefer a "socially and economically disadvantaged business" (SDB) definition, but it said that because the FCC's data collection on media ownership is "neither current nor accurate," it will need to improve it.

CBS to sell 50 radio stations

CBS Corp CEO Leslie Moonves said Thursday the company is putting 50 radio stations in 12 markets on the block in a move to combat a sour economy, which is squeezing local advertising. The stations, which make up 15% of CBS' radio revenue, are in mid-sized markets, allowing the company to focus on large markets where there's better chance for growth. CBS will use the proceeds to buy back stock. The company's also ramping up its web presence through CNET Networks, which it acquired in May for $1.8 billion in cash.