Friday, February 10, 2012

July 2010

July
30

FCC Negotiations Intensify with Saturday Meeting Amid Push for a Deal

July 30, 2010

The private negotiations between the FCC and telecom industry stakeholders intensified this week with talks held Tuesday through Thursday, and another round planned for Saturday.

The parties could be inching toward an agreement on network neutrality regulations, or at least "smoking-out bottom line positions," according to the investment firm Stifel Nicolaus.

There is a decent chance a deal could be struck, the firm noted in a Friday report, while cautioning that many issues remain unresolved, including the timing of a possible announcement and whether or how wireless carriers should be covered by net neutrality guidelines.

The meetings are part of on-going talks between the FCC and industry to find a compromise on Internet regulation in lieu of the FCC's proposal to reclassify broadband as a telecommunications service, which would result in more regulation for service providers.

According to a source close to the situation, the parties that will meet on Saturday include Verizon, Google, AT&T, the Open Internet Coalition and the National Cable and Telecommunications Association.

Speculation about a forthcoming agreement comes amid increased concern from lawmakers about reclassification of broadband. Two more Democratic House members, Reps. Ben Chandler, D-Ky., and Alan Grayson, D-Fla., sent letters to FCC Chairman Julius Genachowski recently urging him to work with Congress to find an appropriate legislative remedy for the challenges of regulating broadband.

Bipartisan Legislation Offered Friday to Block FCC Action on Broadband

July 30, 2010

As FCC negotiations intensify over a possible regulatory deal on broadband, 50 members of Congress are pushing back with fresh legislation directing the FCC to wait for Congress to act first.

Late Friday afternoon, Rep. Gene Green, D-Texas, and Rep. Fred Upton, R-Mich., both members of the House Energy and Commerce Committee, announced the introduction of the measure. The bill was dropped hours before the House adjourns for its summer recess.

"Congressional leadership is working on crafting targeted legislation aimed at broadband Internet. It is important that the FCC gives Congress time necessary to complete its work," said Green, whose home state of Texas is headquarters to AT&T, a major player in the talks.

While Green said the Internet's openness must be preserved, he wants Congress to set the ground rules - not the FCC. "It is my hope that with the number of cosponsors this resolution received," Green added in a statement, "the FCC will hear the message from Congress and publicly respond that they will wait for proper legislative authority."

Sponsors include ranking House Energy and Commerce member Joe Barton, R-Texas, and Rep. Cliff Stearns, R-Fla., the ranking member on the House Commerce Communications Subcommittee.

Kerry Prepping Legislation to Safeguard Privacy Online

July 30, 2010

Sen. John Kerry, D-Mass., plans to introduce legislation to protect online privacy, saying the country needs new standards for "protection that ensure people's identity is treated with the respect it deserves."

"The information that firms are collecting about us may be incorrect or out of context, leading to completely incorrect conclusions," Kerry, who chairs the Senate Commerce Communications, Technology and the Internet Subcommittee, said in a statement this week.

"Our ability to control what information is collected, used, and disclosed about us is central to how we want the world to view us, and that, in turn, affects our ability to seek out opportunity in both social and economic spheres," he added.

He said there's "widespread confusion" among constituents and colleagues over the existing authority that Congress has in this area.

Legislation isn't likely to come to the Senate floor this year, given the short time the chamber plans to be in session before the fall elections. Kerry said he believes the measure could be enacted next year.

UPDATED: MoveOn to Facebook: Respect My Privacy

July 30, 2010

Progressive grassroots political organization MoveOn.org sent out an e-mail Thursday evening admonishing Facebook for sharing personal information without first asking users for opt-in permission.

The note asked supporters to sign a petition saying that Facebook "should not make information about me or my friends public without my explicit permission."

The petition comes a day after Facebook founder and CEO Mark Zuckerberg made his first official visit to Washington. Zuckerberg met with members of the Senate Republican High-Tech Task Force, including task force Chairman Orrin Hatch, R-Utah.

UPDATE: Facebook has spent much of the summer defending concerns about its privacy policies from lawmakers, civil rights groups, users and privacy groups.

MoveOn's discontent with Facebook, which came in the wake of a single researcher aggregating publicly available data from 171 million Facebook accounts, is misplaced, Facebook maintains. "This information already exists in Google, Bing, other search engines, as well as on Facebook," said Andrew Noyes, company spokesman. "No private data is available or has been compromised."

Secret Meetings Alert: More FCC, Stakeholder Talks

July 30, 2010

Representatives from a host of telecom companies and the consumer advocacy group, Open Internet Coalition, met with FCC officials on Wednesday about potential legislation relating to open Internet principles, according to a disclosure document filed with the commission.

Among the topics discussed were the transparency of broadband Internet service performance, network management practices, the treatment of specialized services and prohibitions on blocking legal content, according to the document.

The meeting is part of on-going talks between the FCC and industry to find a compromise on Internet regulation in lieu of the FCC's proposal to reclassify some parts of broadband as a telecommunications service, which would grant the FCC more regulatory authority over broadband providers.

Individuals at the meeting included Google's Richard Whitt, Skype's Christopher Libertelli, Verizon's Thomas J. Tauke, AT&T's James W. Cicconi, NCTA's Kyle E. McSlarrow, Open Internet Coalition's Markham C. Erickson and the FCC's Edward Lazarus, Zachary Katz, Bruce Gottlieb, Paul De Sa and Doug Sicker.

July
29

Boucher Offers Spectrum Auction Bill

July 29, 2010

Adding to an already full plate of legislation before his panel, House Energy and Commerce Communications Subcommittee Chairman Rick Boucher, D-Va., introduced a bill Thursday that would provide incentives to broadcasters and other spectrum holders to voluntarily give up some spectrum to be auctioned for use by wireless broadband providers.

The bill would implement the FCC's proposal included in its national broadband plan that calls on broadcasters to voluntarily surrender some of their spectrum for use for wireless broadband. Last month, President Obama signed a proclamation affirming the FCC's goal of making 500 megahertz of new spectrum for wireless broadband available over the next decade.

Boucher said the combination of more consumers buying smart phones and advances in technology are "placing unprecedented demands on our limited wireless spectrum availability."

Boucher's legislation, which he authored with Energy and Commerce Communications Subcommittee ranking member Cliff Stearns, R-Fla., would allow the FCC to conduct "incentive" auctions for spectrum voluntarily relinquished by broadcasters and share some of the proceeds from the auctions with broadcasters. Under the bill, the FCC would have the discretion to decide what percentage of funds from the auctions should be shared with broadcasters.

Responding to concerns from broadcasters, the bill would specifically bar the FCC from reclaiming "frequencies of broadcast television licensees or any other licensees directly or indirectly on an involuntary basis for the purpose of conducting an incentive auction," according to a summary of the bill.

Broadcasters have voiced concern that the FCC would eventually force them to give back some of their spectrum, a move they say would endanger free over-the-air television.

In a statement, National Association of Broadcasters spokesman Dennis Wharton said the group has "no quarrel with incentive auctions that are truly voluntary, and the Boucher-Stearns bill is a clear step in the right direction. We look forward to working with Congress as it lays the foundation for sound spectrum policy that recognizes the enduring value of free and local broadcasting."

Leahy To Hold Hearings On Administration's ECPA Proposal

July 29, 2010

Senate Judiciary Chairman Patrick Leahy, D-Vt., Thursday said he plans to hold hearings this fall before agreeing to change a law giving the government the power to obtain more information on the electronic communications of U.S. citizens.

The Obama administration is seeking changes to the Electronic Communications Privacy Act that would allow the FBI to obtain from Internet service providers additional information without warrants. The information includes the times and dates e-mails were sent and received and possibly a user's browser history. Leahy said the move raises serious privacy and civil liberties concerns.

"Given the technical advances of the last two decades and the need for a comprehensive, national cybersecurity strategy, it is clear that the Electronic Communications Privacy Act must be updated to reflect the realities of the digital age," Leahy said in a statement.

"While the government should have the tools that it needs to keep us safe, American citizens should also have protections against improper intrusions into their private electronic communications and online transactions," he added. "We must also address past government abuses of these authorities."

Congress has begun holding hearings on updating ECPA and civil liberties groups, Internet firms, telecommunications providers and others have launched a coalition to push for changes to ECPA.

However, the changes sought by the Digital Due Process coalition appear to clash with what the administration is seeking. The coalition says ECPA should be updated to provide "stronger privacy protections for communications and associated data in response to changes in technology and new services, while preserving the legal tools necessary for government agencies to enforce the laws, respond to emergency circumstances and protect the public."

Kerrey, MPAA Part Ways

July 29, 2010

Despite earlier reports that it was almost a done deal, former Sen. Bob Kerrey, D-Neb., will not be taking over the top job at the Motion Picture Association of America.

The MPAA issued a brief statement Thursday saying that the movie industry group and Kerrey "have agreed to end negotiations regarding the position of chief executive officer of the MPAA. The search process for a new CEO will continue."

Kerrey released his own statement that said: "An agreement could not be reached and both sides agreed it would be best to break off discussions"

Had he and the MPAA reached a deal, Kerrey, who currently serves as president of the New School University in New York, would have succeeded Dan Glickman as the association's chief. MPAA President Bob Pisano has served as interim CEO since Glickman, a former U.S. House member and Agriculture secretary, left in April.

Bill To Provide PTO With Additional Funding Advances

July 29, 2010

The House late Wednesday evening passed legislation that would allow the U.S. Patent and Trademark Office to retain funding from fees it collects in fiscal year 2010 above the amount allocated by Congress. The Senate could take up a similar bill possibly as soon as Thursday.

The bill would allow the PTO to keep $129 million in extra fees it expects to collect this year. It would be offset by cancelling the same amount in unused funds from the Census Bureau, which like the PTO is also a Commerce Department agency.

The PTO's annual appropriation from Congress is based on fees the agency estimates it will collect. Fees for 2010 are now expected to come in above the $1.887 billion level set by Congress in the agency's annual spending bill.

The legislation is backed by business groups and authorizers, who say it will help the agency begin to address the massive backlog of pending patent applications. Brian Pomper, executive director of the Innovation Alliance, which includes such firms as Dolby Laboratories and Qualcomm, praised the measure saying, "Greater funding means that patent quality can increase and the 36 month backlog of unexamined patents can decrease. The stakeholder community knows that improving the ability of American innovators to obtain patents, means that U.S. manufacturing and overall competitiveness is enhanced."

During House consideration of the bill, House Commerce, Justice and Science Appropriations Subcommittee Chairman Alan Mollohan, D-W.Va., echoed this view. The additional funding "will begin to help the agency address the ongoing patent pendency and backlogs," he said. "What this bill will not do is fix the underlying structural flaws in USPTO's revenue mechanisms that are the major cause for the patent pendency and backlog problems that have plagued USPTO for years."

Hodes Offers Resolution Opposing Net Sales Tax Bill

July 29, 2010

Rep. Paul Hodes, D-N.H., introduced a resolution Thursday opposing legislation that would close a loophole that would allow states to mandate that online and catalogue retailers collect sales taxes from customers who live in states where the firms do not have a physical presence.

"It is the sense of the House of Representatives that Congress should not impose any new burdensome or unfair tax collecting requirements on small online businesses, which would ultimately hurt the economy and consumers in the United States," according to the text of the nonbinding resolution.

The resolution is aimed at countering a bill offered by Rep. Bill Delahunt, D-Mass., that would close a loophole from a 1992 Supreme Court decision that said retailers are not required to collect sales taxes from customers in states where they do not have a physical presence. It would allow states who joined a multi-state compact aimed at simplifying state tax rates and rules to mandate that online and catalog retailers collect sales taxes from remote sales.

Sen. Mike Enzi, R-Wyo., is working on a bill similar to Delahunt's measure and is hoping to attract bipartisan support for the measure before introducing it, a spokeswoman said.

"New Hampshire's small businesses and entrepreneurs already have to compete with giant retail chains selling cheap foreign imports," Hodes said in a statement. "The last thing they need is a new tax that will increase costs, expand regulations, and drive them out of business."

New Hampshire itself doesn't impose sales taxes, though online businesses based in the state could be required to collect taxes from customers who live in states with sales taxes under Delahunt's bill, a Hodes' aide noted. On Hodes' claim that the bill would impose a "new" tax, an aide to Delahunt disputed this, saying it only would ensure that online firms collect the same state sales taxes that brick-and-mortar retailers collect now.

Hodes' resolution was offered on the same day that Delahunt, along with Gov. Mike Rounds, R-S.D., and state Rep. Chris Rants, R-Iowa, former speaker of the Iowa House, held a news conference with representatives from state and local groups as well as the National Retail Federation to rally support for Delahunt's bill. They say states are set to lose an estimated $23 billion by 2012 in sales taxes because of the loophole.

Delahunt argued that the bill is "at its core about fairness, simple fairness." Rants added that states are "not asking the federal government for a handout" but the ability to "collect the taxes we're owed."

But Steve DelBianco, executive director of NetChoice, which includes online firms such as eBay, Expedia and Yahoo, said in a conference call that the $23 billion figure is exaggerated and that the cost and difficulty of having to collect sales taxes from thousands of jurisdictions and answer questions from customers and state tax officials would pose a significant burden for small online retailers in particular.

FCC, Broadband Providers Hold More Regulatory Talks

July 29, 2010

Representatives from AT&T and the National Cable & Telecommunications Association spoke with key FCC personnel Tuesday about a regulatory framework for the Internet, reveals a disclosure filed with the commission.

According to the document, they discussed prohibitions against blocking lawful Internet content; standards for preventing harm to consumers or competition; and avenues for addressing complaints regarding Internet openness, among other issues.

The meeting is part of on-going talks between the FCC and industry to find a compromise on Internet regulation in lieu of the FCC's proposal to reclassify some parts of broadband as a telecommunications service, which would grant the FCC more regulatory authority over broadband providers.

The FCC's authority over broadband was put in doubt in the wake of an April federal appeals court decision that said the commission had overstepped its authority by cracking down on Comcast for violating the agency's open Internet principles.

Those at the meeting included AT&T Executive Vice President James Cicconi , NCTA CEO Kyle McSlarrow, Edward P. Lazarus, chief of staff to FCC Chairman Julius Genachowski, and Zachary Katz, deputy chief of the FCC's Office of Strategic Planning & Policy Analysis.

Some public interest groups have complained about such closed-door meetings. "Any 'compromise' that allows the powerful telecom and Internet companies to prioritize their content over all others is not real Net Neutrality; it's fake Net Neutrality," Free Press President Josh Silver said in a statement. "...The future of the Internet should not be decided in a back room."

July
28

Mr. Zuckerberg Goes To Washington

July 28, 2010

markzuckerberg.jpgFacebook founder and CEO Mark Zuckerberg made his first official visit to Washington this week and met Wednesday with members of the Senate Republican High-Tech Task Force.

Zuckerberg "looks forward to sharing our company's unique perspectives on 21st century innovation, U.S. competitiveness, the economy, and related issues with a range of interested parties," Facebook spokesman Andrew Noyes said.

While Facebook has come under scrutiny from some lawmakers for its privacy policies, GOP task force Chairman Orrin Hatch, R-Utah, didn't mention the issue in a press release touting the task force's meeting with Zuckerberg. A source said Zuckerberg and the senators discussed a range of issues including educating consumers about how to protect their privacy.

"It was a productive meeting that underscored technology's importance as a key engine in fueling job creation and putting the nation on the road to economic recovery," Hatch said in a statement.

Zuckerberg did not hold any public events during his maiden voyage to the nation's capital as the head of a major Internet company but did meet with other lawmakers.

ICANN Deploys Security Tool To Enhance Net Security

July 28, 2010

icannlogo.jpgThe nonprofit group that manages the Internet's address system said Wednesday that it was working with the Commerce Department and security provider VeriSign to deploy a new tool aimed at curbing Internet crime.

The Internet Corporation for Assigned Names and Numbers announced it was deploying the Deployment of Domain Name System Security Extensions, or DNSSEC, at the Internet's root, the huge database of Internet addresses, or domain names. ICANN has an agreement with the Commerce Department to manage the technical infrastructure underlying the Internet's domain name system. VeriSign operates two of the world's 13 Internet root servers and has been working with ICANN and Commerce to deploy DNSSEC at the root zone.

ICANN said DNSSEC would help combat two types of Internet crimes aimed at deceiving Internet users. They involve "cache poisoning," which occurs when the saved Web site request of an Internet user is diverted to a fake Web site designed to look like the one the user was seeking, and "man-in-the-middle" attacks, which occur when a third-party intercepts a Web communication, such as one involving a customer and a bank, and pretends to be one of the parties involved.

ICANN said the DNSSEC would eventually allow Internet users to know "with certainty" that they have been directed to the Web site they sought.

"This upgrade will help disrupt the plans of criminals around the world who hope to exploit this crucial part of the Internet infrastructure to steal from unsuspecting people," ICANN President and CEO Rod Beckstrom said in a statement.

House Panel Backs Internet Gambling Bill

July 28, 2010

The House Financial Services Committee Wednesday backed legislation that would legalize Internet gambling and set up a regime to license and regulate it.

The bill was approved on a bipartisan 41-22 vote with one present vote from Rep. Ron Paul, R-Texas. It would counter a 2006 law that prohibits online gambling with some exceptions and bars banks and credit card companies from processing payments for online bets.

House Financial Services Chairman Barney Frank, D-Mass., said he is aiming to move the bill on a parallel track with a related measure offered by Rep. Jim McDermott, D-Wash. His bill, pending before the Ways and Means Committee, would set up a system for taxing legal online gambling activities, which are estimated to bring in as much as $42 billion over a 10-year period.

The committee rejected two amendments that critics said would essentially gut the bill. The first, offered by Rep. Joe Baca, D-Calif., and defeated on a 37-22 vote, would require states to opt-in to the bill's provision allowing online gambling. The bill as offered would provide states with an opportunity to opt out of allowing Internet gambling for their citizens. The committee adopted an amendment offered by Rep. Brad Sherman, D-Calif., that would give states one full general legislative session to opt-out instead of the 90 days included in the bill.

The panel also rejected, 43-22, an amendment from Bachus that would have deleted the bill's provisions and replaced it with language requiring the Treasury Department to develop and maintain an updated list of illegal online gambling sites that banks, credit card companies and other payment providers could use to block funding for online gambling transactions.

Those entities that block illegal online gambling transactions from sites on the list would be deemed in compliance with the 2006 law. To read more, see Thursday's CongressDaily AM edition. (Subscription required).

Commerce Seeks Comment On How To Bolster Cybersecurity

July 28, 2010

The Commerce Department on Wednesday released a notice seeking comment from commercial and academic stakeholders on the challenges private sector organizations face in enhancing their own cybersecurity, and possible strategies, including financial incentives, to encourage best practices, Nextgov.com reported.

Commerce Secretary Gary Locke announced plans on Tuesday to release the notice of inquiry at the Symposium on Cybersecurity in the Commercial Space, hosted by the department's National Institute of Standards and Technology.

"The department's Internet Policy Task Force is releasing a formal notice of inquiry that will solicit viewpoints from stakeholders throughout the country on how we can both preserve innovation in the Internet economy and ensure security and confidence in the system," Locke said during a keynote address. "There is of course an endless array of issues that people will have ideas about, and we welcome them." To read more, click here.

Japanese Antitrust Official Defends Approval Of Google Deal

July 28, 2010

Japan's antitrust authority defended its decision Wednesday to approve Yahoo Japan's deal with Google to use its search services after critics such as rival Microsoft criticized the agreement as anticompetitive.

Under the non-exclusive deal formally announced Tuesday, Google will provide both search and search-related advertising platform services to Yahoo Japan, which will license some of its Japanese search content to Google for use in its Japanese search results. Yahoo Inc. owns a minority stake in Yahoo Japan, which is a subsidiary of Softbank.

"Both companies will remain independent search and advertising providers, will not share any customer or pricing information and will continue to vigorously compete in Japan," Daniel Alegre, vice president of sales for Google Japan and Asia-Pacific, wrote in his blog post Tuesday. "Our hope is that through this deal we can drive further innovation in ads and search and spur each other--and other companies--towards greater competition."

But Microsoft Vice President and Deputy General Counsel Dave Heiner argued that the Google-Yahoo Japan deal is even more anticompetitive than a U.S. advertising agreement, Google and Yahoo Inc. had to abandon in 2008 because of antitrust concerns raised by the Justice Department.

Heiner also questioned whether Japan's antitrust authorities had approved the deal, as Google claimed.

According to a translated version of a news report from Japan's Yomiuri Online, Japan's trade commission minister said Wednesday that as long as the two firms continue to compete for advertisers, the deal does not raise antitrust issues. But the official pledged to continue to monitor the agreement.

July
27

Microsoft Blasts Yahoo Japan-Google Deal

July 27, 2010

Microsoft said Tuesday that Google's deal with Yahoo Japan to replace its search service with Google's is more anti-competitive than a failed 2008 U.S. advertising deal between Yahoo and Google that the Justice Department said would violate U.S. antitrust laws.

In a blog post, Microsoft Vice President and Deputy General Counsel Dave Heiner argued that the deal will "eliminate search competition in Japan--in paid advertising and natural search results." He noted that Google accounts for about 51 percent of paid search advertising in Japan, while Yahoo Japan accounts for 47 percent, with their natural search results "almost as high. ... If Google is permitted to proceed with its plan, it would gain nearly complete control over search and search advertising in Japan through contract, not organic growth."

Heiner said this deal is bigger than the 2008 deal Google and Yahoo, which owns part of Yahoo Japan, abandoned after the Justice Department said it would file an antitrust lawsuit to block it. While he notes that Google has said the latest deal already has been approved by Japanese authorities, Heiner said, "It will be interesting to see over the next few weeks if that is really accurate."

Google confirmed the deal with a blog post Tuesday on its Google Japan blog that was in Japanese. While the Google translation service's English text of the post was hard to understand, it did say the deal was aimed at bringing "better services for users and partners."

Microsoft gained regulatory approval in February for its own search alliance with Yahoo, which the firms said was aimed at helping them better compete against Google.

Business Groups Urge Congress To Provide More PTO Funding

July 27, 2010

Five business groups and trade associations sent a letter to House and Senate leaders Tuesday urging lawmakers to allow the U.S. Patent and Trademark Office to use fees it has collected above the amount allocated to the agency in its fiscal year 2010 spending bill.

The Obama administration submitted a formal request to lawmakers earlier this month for supplemental funding that would allow the PTO to use $129 million in additional fees the agency collected above the amount it estimated it would collect this year and that was set by Congress in the fiscal 2010 spending bill.

The administration has proposed offsetting the funding by canceling $129 million in unspent Census Bureau funding. In their letter to House and Senate leaders, the International Trademark Association, the Motor & Equipment Manufacturers Association, National Association of Manufacturers, the National Treasury Employees Union, and the U.S. Chamber of Commerce voiced support for the administration's proposal.

"In order for USPTO to continue the progress it has made, it is imperative that the agency have access to this revenue to hire new examiners, pay current employees overtime and invest in necessary upgrades to IT infrastructure," according to the letter. "Without this supplemental authority to spend the fees it is collecting, USPTO will not only be forced to further delay hiring the examiners it needs to meet its long term goals, but will also have to cut current patent examination resources in order to stay within its current spending authority."

However, appropriators have criticized the PTO for providing overly optimistic budget projections in the past.

FCC Cautioned On D-Block Spectrum Auction

July 27, 2010

A key lawmaker and senior Homeland Security official said Tuesday that the FCC should not go forward with selling commercial firms access to communications spectrum needed by public safety organizations until key technical and legal issues are resolved, CongressDaily reported.

House Homeland Security Emergency Communications Subcommittee Chairwoman Laura Richardson, D-Calif., questioned whether the FCC has thoroughly worked out details of its plan to auction off the D-block spectrum to commercial wireless providers.

Under the plan, the commercial firms would help create a state-of-the-art, interoperable communications network for first responders that is considered essential in the post-9/11 era. But some public safety organizations and lawmakers believe the D-block should be allocated directly for first responders rather than auctioned to commercial bidders.

"The plan contends that public safety would be able to leverage commercial innovation, economies of scale, and additional spectrum via priority access and roaming agreements on commercial networks," Richardson said. "These are promising attributes, but the subcommittee needs more assurances that these features will provide adequate resources and capacity for public safety to meet its mission-critical needs."

The Homeland Security Department is not fully behind the plan. "We believe that the FCC's proposal has merit, with a number of significant caveats," Greg Schaffer, assistant Homeland Security secretary for cybersecurity and communications, said in prepared testimony for the hearing. To read more, click here. (Subscription required)

FTC Weighs 'Do Not Track' List

July 27, 2010

FTC Chairman Jon Leibowitz told a Senate panel Tuesday that the commission is exploring the idea of proposing a "do-not-track" list similar to the national Do Not Call registry that would allow consumers to opt-out of having their Web activities tracked for advertising purposes.

Leibowitz discussed the proposal during a Senate Commerce hearing on online consumer privacy. The FTC is expected to release a report in the fall with recommendations on ways to improve online privacy. He said some sort of opt-out process such as a do-not-track mechanism for online behavioral advertising could be run by the FTC or some private sector entity. It might be similar to the federal Do Not Call list that bars telemarketers from calling numbers on the list.

Privacy groups in 2007 called on the FTC to implement a do-not-track list to give users more control over their privacy. A poll released in June found wide public support for such a list.

Leibowitz also said the FTC may recommend that firms detail the most "material terms" in their privacy policies in a small box so that companies can't bury controversial practices in fine print.

He and some committee members noted that most average consumers do not read online privacy policies. Leibowitz said the FTC's proposal that Web sites feature important privacy information more prominently would help ensure that most average Internet users "don't have to sell their soul for not opting out."

Facebook Defends Privacy Policies

July 27, 2010

Ahead of a House Judiciary subcommittee hearing Wednesday on online privacy, Facebook's top lobbyist wrote Judiciary Chairman John Conyers, D-Mich., to defend concerns that the social networking site shares user data with third parties without users permission.

In the letter Saturday to Conyers, Facebook Director of Public Policy Tim Sparapani responded to a request from Conyers for information on Facebook's privacy policies and with whom the firm shares user data.

"The question posed in your letter asks whether Facebook shares users' personal information with third parties without the knowledge of users," Sparapani said. "The answer is simple and straightforward: we do not. We have designed our system and policies so that user information is never shared without our users' knowledge."

Sparapani also outlined Facebook's efforts to improve its privacy settings and how it deals with outside parties. On advertisers, he said Facebook "provides advertisers only with anonymous, aggregated data, such as the number of users in a particular state who clicked on a specific ad."

Facebook Chief Security Officer Joe Sullivan is set to testify before the House Judiciary Crime, Terrorism and Homeland Security Subcommittee on Wednesday on privacy issues related to the Internet and social networking sites in particular, while Facebook Chief Technology Officer Bret Taylor was set to testify Tuesday afternoon at a Senate Commerce Committee hearing on online privacy along with representatives from AT&T, Apple and Google.

Do Not Call List Hits 200 Million

July 27, 2010

It seems most Americans don't like to get those annoying telemarketing calls during dinner or any other time of day.

The FTC said Tuesday that more than 200 million numbers have now been listed on the federal Do Not Call registry, which bars telemarketers from calling numbers on the list.

The list was created in 2003 to help consumers prevent unwanted telemarketing calls. It does include some exceptions for political organizations, charities, polls and surveys as well as those with whom a consumer already has an existing business relationship.

Google Unveils Apps Suite For Government

July 27, 2010

Google on Monday announced a new version of Google Apps, its Web-based competitor to Microsoft's Office business suite, that is tailored to federal agency customers and meets the government's security and cloud computing standards, Nextgov.com reported.

Currently, more than a dozen federal agencies already use the enterprise edition of Google Apps for routine business tasks, such as e-mail, word processing and calendars.
The new edition, Google Apps for Government, is the first package of cloud tools to receive federal security certification, according to company officials.

Cloud computing is a method of paying for and accessing information technology on-demand and online through a third party, instead of via agency servers. To reduce IT costs and greenhouse gas emissions, the White House has been pushing federal agencies to consider replacing more expensive in-house servers and software licenses with cloud computing hardware and software.

But perhaps the biggest obstacle to transitioning to the cloud has been concerns about the security of hosting agency data in a shared online environment.

The General Services Administration has reviewed Google's new product and confirmed that it complies with controls stipulated under the 2002 Federal Information Security Information Act, company officials said. They added FISMA approval will make it easier for agencies to compare Google Apps' security features with those of their existing systems. Federal employee e-mail and calendar services will be hosted separately from Google's other business-class services in a U.S. location. To read more, click here.

Genachowski Tells CWA There Is Much Work Ahead

July 27, 2010

FCC Chairman Julius Genachowski touted the findings of his agency's report on the status of broadband deployment, released last week, in a speech Monday to the Communications Workers of America to emphasize that much work remains to be done to bring high-speed Internet access to all Americans, CongressDaily reported.

"The report found that up to 24 million people who live in rural America don't have access to broadband," Genachowski said. "I don't think we should rest until we connect every corner of this country."

Telecommunications industry giants, including AT&T and Verizon, took issue with findings of the report, calling them inconsistent with the national broadband plan's conclusion that 95 percent of Americans have access to wireline broadband.

July
26

Expletives Fly at Raucous Labor Union Convention Over Telecom 'Czar'

July 26, 2010

Tempers flared today at the 72nd annual convention of the Communications Workers of America over a proposed amendment to the union's constitution that would establish the new position of Telecommunications Sector Vice President.

A member of CWA local 1298 called AT&T "arrogant bastards" while expressing opposition to the amendment amid concerns that a Telecom Sector VP could undermine local chapters' already-troubled bargaining leverage.

Taking a cue from the beltway playbook, the opposition characterized the proposed new position as a 'czar' lording over telecom issues.

Secretary-Treasurer Jeffrey A. Rechenbach, who presided over the debate, had to ask the crowd to stop booing. Ultimately the amendment was voted down.

CWA, which describes itself as the largest telecommunications union in the world, says it represents more than 700,000 workers in the pubilc and private sectors. The group has been at the forefront of opposition to the pending Comcast-NBC Universal merger.

The CWA convention is being held at the Washington Hilton Monday through Thursday.

Who Needs Snobby LA? The 'Other' Cable Show Harbors in Baltimore

July 26, 2010

Couldn't jet off to Tinseltown in May for the glitzy Cable Show to indulge in the endless bacchanalia of receptions, dinners and after-parties? Feeling like you missed all the action that went down at the Nokia Theater at L.A. Live? Regretting that you passed on the chance to frolic in Southern California's sunshine and dance the night away with a friend of a friend of a friend to Paris Hilton?

It turns out you're in luck because the "other" cable show has come to the region. Cable industry intrigue? Check. Near the water? Check. Plenty of sunshine? Check. Swank dinner parties and receptions in a Hollywood-like setting with lots of star wattage? Ok, the Independent Show in Baltimore probably can't deliver on that, but it does have one distinct advantage: it's less than hour's drive from D.C.

So who needs the star-studded Cable Show when there's the Independent Show, featuring a private party tonight at Camden Yards even though the Orioles will be in Toronto, and Tuesday's "luncheon with speaker."

To learn more about the event, being held today through Wednesday and sponsored by the American Cable Association and the National Cable Television Cooperative, click here.

FCC Chairman Genachowski Delivers Monday Speech, Tuesday Testimony

July 26, 2010

With lawmakers increasingly turning their attention to strengthening online privacy, FCC Chairman Julius Genachowski will weigh in on the topic Tuesday during a hearing before the Senate Commerce Committee. Appearing alongside Genachowski will be Jon Leibowitz, chairman of the Federal Trade Commission.

Rep. Bobby Rush, D-Ill., chairman of the Energy and Commerce Commerce, Trade and Consumer Protection Subcommittee, introduced privacy legislation last Monday, while Energy and Commerce Communications Subcommittee Chairman Rick Boucher, D-Va., has floated a draft measure.

But Sen. Byron Dorgan, D-N.D., a senior member of the Senate Commerce Committee, recently told CongressDaily that crafting related legislation has proven difficult in the upper chamber, and with limited time left on the congressional calendar, he doesn't expect Senate action this year.

Genachowski also is scheduled to appear today at a convention and political conference sponsored by the Communications Workers of America, one of several organizations opposed to the proposed merger of Comcast and NBC Universal. Comcast Executive VP David Cohen is scheduled to brief reporters Wednesday about the latest developments with the transaction.

July
23

Dingell to FCC Chairman Genachowski: Never Dis' Me Again

July 23, 2010

FCC Chairman Julius Genachowski might think twice in the future about taking his time answering a Dingellgram after the legendary Michigan Democrat cut the agency chief down to size earlier this week.

"I write to express my great frustration at your apparent unwillingness to respond to my letter of May 27, 2010," Rep. John Dingell told Genachowski in a follow-up correspondence.

The congressman, a former chairman of the powerful House Energy and Commerce Committee, then instructed Genachowski to reply by the close of business on Monday, July 26.

And to make sure the FCC regulator got the message, Dingell put his request in bold letters.

Dingell, who opposes Genachowski's controversial plan to regulate broadband as a telecommunications utility, asked the chairman in May to answer several detailed questions about the proposal.

"We regret the lengthy response time and we will meet Congressman Dingell's requested deadline," FCC spokeswoman Jen Howard told Tech Daily Dose.

Read both of Dingell's letters here:

NJ EXCLUSIVE: Inside the Closed-Door Telecom Negotiations

July 23, 2010

Read National Journal's exclusive, behind-the-scenes coverage of the top-secret negotiations being held by Congress and the FCC to craft major telecom legislation:

Key members of Congress and the Federal Communications Commission have held private talks with telecommunications-industry stakeholders more than 30 times since April, with the goal of crafting broadband-related legislation that can be fast-tracked this year.

The leaders of this effort hope to quell a months-long dispute over whether the FCC has the authority to regulate broadband service -- and to prevent the fight from derailing the commission's ambitious agenda, which centers on promoting high-speed Internet access.

Despite the flurry of activity, insiders are keeping expectations low. The talks could come to naught, they said, because forging consensus among the divergent constituencies, including telecom and cable giants, Silicon Valley heavyweights, and consumer advocates, is proving difficult.

This election year's short legislative calendar and disagreements over the scope of the legislation already are threatening to push the work into 2011. "I think reaching agreement is a challenge," said Paul Glenchur, a senior telecom analyst with the Potomac Research Group, who sees only a slim chance of a bill clearing Congress this year. "On some of these issues, it's ships passing in the night."

At best, the talks are expected to result in a draft measure that can be circulated before the end of the current Congress and then serve as a marker for more discussion and eventual action next year.

Rep. Rick Boucher, D-Va., who chairs the House Energy and Commerce Subcommittee on Communications, Technology, and the Internet and is a central player in the talks, is most often cited as the likely author of such a draft, though Rep. Henry Waxman, D-Calif., who chairs the full committee, could collaborate with him or take the lead, sources said.

"We are making substantial progress and there are major issues still to be resolved," Boucher said in an interview, adding that the goal is "consensus" among the stakeholders.

The lawmaker insisted that it is premature to discuss who might write such legislation and when it would emerge. He also downplayed the possibility of a draft, emphasizing that a bipartisan bill could be formally introduced once an agreement is reached.

To read the rest of this article, click here [subscription required].

The Week Ahead Features Hearings On Online Privacy

July 23, 2010

Here is an early look at some of the technology and telecom-related events happening in Washington next week:

Monday:
The FCC will hold a joint two-day meeting with the Food and Drug Administration on wireless medical technology beginning at 8 a.m. Speakers include FCC Chairman Julius Genachowski and FDA Commissioner Margaret Hamburg.

Tuesday:
The FCC and FDA will host the second day of their joint meeting on wireless medical technology beginning at 9 a.m.

The House Financial Services Committee will hold a 10 a.m. markup of H.R. 2267, the Internet Gambling Regulation, Consumer Protection, and Enforcement Act.

The House Judiciary Committee will hold a 10:15 a.m. hearing on the FTC's Bureau of Competition and the Justice Department's Antitrust Division.

The House Energy and Commerce Health Subcommittee will hold a hearing at 1 p.m. on implementation of the Health Information Technology for Economic and Clinical Health Act.

The Senate Commerce Committee will hold a hearing at 2:30 p.m. on consumer online privacy.

Wednesday:
The House Judiciary Crime, Terrorism, and Homeland Security Subcommittee is holding a hearing at 2 p.m. on "online privacy, social networking, and crime victimization."

The House Armed Services Unconventional Threats and Capabilities Subcommittee will hold a 2 p.m. hearing on harnessing small business innovation for national security cyber needs.

July
22

WeGov.Com Pushes Net Activism In New Direction

July 22, 2010

Now that politicians and lawmakers have embraced Facebook and other Web services for outreach, the newest game in town, WeGov.com, goes the other direction, CongressDaily reports.

WeGov.com will move from testing status to a full launch by the end of this month. It bills itself as "the most comprehensive, nonpartisan platform for civic engagement, political participation, and organizational activism. . . . Our mission is to provide a place where citizens and groups can take REAL political action and make an impact."

The site was founded by David Gordon, a Bostonian who clocked some time in Washington as a lobbyist for the MWW Group and then joined his family's wine business. Gordon had been involved in some local races in addition to his Beltway experience. He was moved by efforts of people to group around pieces of legislation to affect an outcome. WeGov.com has been in the works for at least seven years, and it's had Gordon's full attention for the past year.

Gordon pointed out that as popular as Facebook is, especially in political circles, it generally serves as a way to alert users to a movement rather than to organize around it. His site allows groups to host pages on the site just like Facebook, but it goes a step further by enabling users to donate to campaigns, engage in letter-writing efforts and join petitions.

In that way, Gordon's creation takes a stab at an underlying problem of social networking: It's always been a way to get notice and lap up potential support, but it doesn't mean the supporters will do anything.

"A lot of people may 'like' something, but there's no way to take tangible action," Gordon said. To read more, click here. (Subscription required)

Boucher Introduces Long-Awaited USF Bill

July 22, 2010

House Energy and Commerce Communications Subcommittee Chairman Rick Boucher, D- Va., Thursday introduced his long-awaited bill that would overhaul the Universal Service Fund, which subsidizes telecommunications costs in low-income and rural areas.

The measure, which he authored with Rep. Lee Terry, R-Neb., would expand the fund to include support for broadband service, widen the base of support for the USF and require the FCC to develop a new cost model for calculating high-cost support that includes the cost of providing both voice and broadband services.

Currently, all telecommunications firms that provide voice service between states must contribute to the USF. Under the bill, the pool of contributors to the fund would be expanded to intrastate service and any provider of service that uses telephone numbers, Internet protocol addresses or their "functional equivalents" to provide or enable real-time voice communications including Internet telephony providers such as Vonage, as well as any provider that offers a network connection to the public, such as cable modem, DSL, Wi-MAX and broadband-over-power-line. The FCC would have some flexibility to limit contributions from providers whose customers make few calls or for family or group plans for residential customers.

Boucher and Terry noted that the current USF is unsustainable with a shrinking base of contributors and an increasing demand for support from the fund. "We've taken great lengths to get costs under control," Terry said.

It has taken Boucher and Terry more than eight months to craft the measure after releasing a draft in November. Boucher said one of the reasons it took so long was their desire to try to bring as many stakeholders on board as possible.

Boucher: D-Block Reallocation Would Count As Loss Revenues

July 22, 2010

House Energy and Commerce Communications Subcommittee Chairman Rick Boucher, D-Va., said Thursday that if Congress passes legislation reallocating a controversial chunk of spectrum for use by public safety officials for a nationwide interoperable broadband communications network, it would count as a loss of as much as $3 billion in revenues to the federal government.

During a news conference to discuss his legislation to overhaul the universal service fund, Boucher was asked about growing opposition to the FCC's proposal to auction off the D-block of spectrum to commercial bidders and use the proceeds to help fund the build-out of the interoperable public safety network.

Some public safety officials have criticized the plan saying the FCC's proposal to allocate 10 megahertz of spectrum for public safety use and to allow public safety officials to roam on commercial networks during emergencies does not adequately meet their communications needs. Measures have been introduced in both the Senate and the House that would reallocate the D-block to public safety. Supporters of these bills argue that officials need more spectrum for a public safety network than what the FCC has offered and the D-block is ideally suited to meet their needs.

Boucher, however, has crafted draft legislation that would implement the FCC's plan and authorize additional funding to make up for any shortfalls in proceeds from the D-block auction. He and some FCC officials argue that the commission's plan is the most realistic way to ensure that an interoperable public safety network is built. Boucher said he is concerned about finding the funding to build the network without the proceeds from a D-block auction. "My view is it should be auctioned," Boucher said. "It is the most efficient way to move forward."

He added, "If you simply give it to public safety you will need to account for that gift." Boucher said proceeds from a D-block auction are counted in the federal budget and have been scored by the Congressional Budget Office as being worth between $2 billion and $3 billion.

Boucher To Introduce USF Bill

July 22, 2010

More than half a year after unveiling a draft bill, House Energy and Commerce Communications Subcommittee Chairman Rick Boucher, D-Va., and Rep. Lee Terry, R-Neb., will introduce legislation Thursday that would overhaul the Universal Service Fund, which subsidizes telecommunications costs in low-income and rural areas.

Boucher and Terry are scheduled to hold an afternoon news conference to outline the details of the bill and changes they have made since releasing a draft of the legislation in November. The draft bill aimed to widen the base of industry contributors and expand the subsidies to promote broadband deployment while capping a key portion of the universal service fund.

The FCC also has signaled its desire to tackle USF reform as part of its 10-year national broadband plan. Boucher has argued that Congress could go further in overhauling the fund than the commission can go under its current authority.

Net Gambling Bill Hits Snags

July 22, 2010

House Financial Services Chairman Barney Frank's drive to establish a licensing and regulation system for Internet gambling still faces resistance within segments of the industry after a tribal group and a brick-and-mortar casino signaled resistance during a Wednesday hearing, CongressDaily reported.

Representatives from the Mohegan Tribe of Connecticut and Los Angeles' Commerce Casino both testified that they had found flaws in Frank's bill, throwing cold water on the bill as currently drafted. Frank, D-Mass., conceded that legislation would have to be tweaked to assuage concerns, especially from politically connected tribal groups that fear they could be placed at a competitive disadvantage if the multibillion-dollar industry was made legal. The bill could be marked up next week. The Senate has shown no interest in the issue so far.

"We are prepared to make some of the changes that people have talked about," Frank said of his bill that would overturn a 2006 law that banned the industry. Frank's bill would allow states and tribes to opt out of the system, and would still continue a ban on sports gambling over the Web. A companion bill by Rep. Jim McDermott, D-Wash., would place taxes on such a system, estimated to bring in as much as $42 billion over a 10-year period. To read more, click here. (Subscription required)

July
21

Opposition Grows In Senate To FCC Regulatory Effort

July 21, 2010

Seven Republican senators -- and one Democrat -- are lining up in opposition to the FCC's effort to reclassify broadband as a telecommunications service subject to tougher regulation, CongressDaily reported.

Sen. Jim DeMint, R-S.C., and six GOP co-sponsors, introduced legislation Wednesday that aims to scale back the FCC's regulatory authority.

FCC Chairman Julius Genachowski "is attempting to impose unnecessary, antiquated regulations on the Internet in spite of court rulings limiting the FCC's authority," DeMint said in a statement. This flies in the face of "bipartisan congressional concern over damaging economic consequences," he added.

His co-sponsors are Republican Sens. Orrin Hatch of Utah, John Ensign of Nevada, John Thune of South Dakota, Tom Coburn of Oklahoma, John Cornyn of Texas, and Jeff Sessions of Alabama.

Taking another approach, Sen. Bob Casey, D-Pa., wrote to Genachowski recently urging him to find a more "targeted" way to expand the FCC's net-neutrality guidelines "rather than an extensive rewrite of the Communications Act or reclassification of broadband as a telecommunications service."

Casey, whose state is home to Comcast Corp., suggested the FCC pursue narrow legislation to obtain the authority it needs in the wake of the federal appeals court decision in Comcast v. FCC that undercut the commission's ability to regulate broadband service.

Facebook Hits 500 Million Users

July 21, 2010

As Facebook marked hitting the 500 million-user milestone Wednesday, it also highlighted its popularity on Capitol Hill, where more than 300 lawmakers now use the social networking site to communicate with constituents or have separate pages promoting their re-election bids.

Federal agencies also have embraced the site since Facebook inked an agreement with the U.S. government in 2009 allowing agencies to have official Facebook pages. Agencies have launched more than 400 Facebook pages, including the White House, according to a Facebook spokesman.

Stearns Urges FCC To Slow Down

July 21, 2010

House Energy and Commerce Communications Subcommittee ranking member Cliff Stearns, R-Fla., urged FCC Chairman Julius Genachowski Wednesday to refrain from putting the reclassification of broadband on the agency's September meeting agenda, saying it would be "disrespectful" to the ongoing House and Senate talks on this issue, CongressDaily reported.

Stearns also said FCC action would shortchange the necessary review of all the public comments filed on this matter by last week's deadline.

He added that lawmakers would only have a few days to assess the reclassification issue upon their return to Washington after Labor Day. The FCC declined to comment.

Stearns' remarks came at a House Energy and Commerce Committee markup of legislation that would update communications laws to ensure individuals with vision and hearing disabilities can utilize Internet-based communication services and have better access video programming, among other technologies. To read more, click here. (Subscription required)

FTC Seeks More Time For Possible Intel Settlement

July 21, 2010

amd-intel.jpgThe FTC said Tuesday that it was extending by two weeks the temporary withdrawal of its antitrust case against Intel Corp. to give the commission more time to reach a settlement with the computer chip maker.

The FTC filed the temporary withdrawal motion on June 21. The motion was set to expire on Friday, but it has since been extended until Aug. 6.

Intel and the agency are reportedly nearing a settlement of the FTC's lawsuit against Intel, filed in December, that claimed the firm has "waged a systemic campaign to shut out rivals' competing microchips by cutting off their access to the marketplace."

The computer chip maker has faced a string of legal troubles alleging it has engaged in anticompetitive behavior. Intel agreed in November to pay rival Advanced Micro Devices $1.25 to settle a lawsuit that claimed Intel had engaged in anticompetitive behavior. The European Commission levied a $1.5 billion antitrust fine against Intel last year, which the company is appealing.

FCC Defends Media Ownership Rules

July 21, 2010

The FCC came under criticism Wednesday for its decision to defend media ownership rules that critics argue allow for greater media consolidation.

The FCC filed a brief in the U.S. District Court of Appeals in Philadelphia defending the media ownership rules adopted in 2007 under Republican Chairman Kevin Martin. The FCC relaxed rules on cross ownership of newspapers and broadcast outlets in the nation's 20 largest markets

"While the rules being challenged were adopted before I became chairman, I support our general counsel in arguing that the order was within the discretion of the commission and the brief's general defense of the commission's authority to make decisions based on the information before it at the time," FCC Chairman Julius Genachowski said in a statement.

UPDATED: Senior FCC Officials Fail to Defend Genachowski's D-Block Plan

July 21, 2010

Under pressure from key members of Congress and public safety groups, senior FCC officials sidestepped repeated opportunities Wednesday to defend Chairman Julius Genachowski's proposal to auction the so-called D-block spectrum to commercial bidders.

"The basic point that the allocation decision . . . is a congressional issue is one that everybody understands," said one of the officials. Referring to legislation planned by Senate Commerce Chairman John (Jay) Rockefeller that would put the kibosh on Genachowski's approach, the official added, "We will review it and move forward appropriately."

Police, fire and rescue squads want to add the D-block, a 10 megahertz slice of frequencies, to adjacent spectrum they already control for a nationwide, wireless broadband communications network considered essential in the post 9/11 era.

After the commission previously failed to auction the D-block to a commercial bidder willing to share the airwaves with public safety organizations, Genachowski recommended building the network without it - and auctioning the D-block to commercial entities with no strings attached.

But his proposal has drawn fierce resistance from emergency groups, who insist that safety would be compromised if the D-block is omitted from their proposed network. That argument appears to be resonating on Capitol Hill, where Sens. John McCain, R-Ariz., and Joe Lieberman, ID-Conn., jointly announced plans today for legislation that would allocate the D-block to public safety. House Homeland Security ranking member Peter King has introduced a similar measure.

UPDATED: Upping the ante, Rockefeller said in a statement today that he is readying a bill that would "provide public safety with an additional 10 megahertz of spectrum." The senator's office confirmed that he was referring to the D-block.

Berman Crafting New IP Bill

July 21, 2010

House Foreign Affairs Chairman Howard Berman, D-Calif., said Wednesday that he is working on legislation with Senate Judiciary Chairman Patrick Leahy, D-Vt., that would aim to crack down on Web sites that provide pirated goods and content.

During a hearing on international intellectual property enforcement efforts, Berman said he and Leahy are working on legislation that would build on an enforcement effort announced last month by the Department of Homeland Security's Immigration and Customs Enforcement agency that seized the Internet addresses, also known as domain names, of seven Web sites that were offering pirated copies of newly released movies.

Berman discussed the importance of gaining the assistance of legitimate businesses that help facilitate piracy such as the credit cards and other payment systems used to pay for pirated goods and content.

"We are committed to reining in the rogue sites and the intermediaries that facilitate or support financially the online businesses predicated on theft," he said.

As part of the recently released national strategy on IP enforcement, Victoria Espinel, the White House Intellectual Property Enforcement Coordinator, said her office working with other agencies would be expanding its efforts to go after foreign-based Web sites and services that infringe U.S. IP through a "a combination of tools, including law enforcement, diplomatic measures, and coordination with the private sector."

Multi-State Probe Into Google WiFi Incident Announced

July 21, 2010

Connecticut Attorney General Richard Blumenthal said Wednesday that he is leading a multi-state investigation examining Google's unauthorized collection of data from unsecured Wi-Fi networks.

Blumenthal, the Democratic nominee for the U.S. Senate, said 37 states are participating in the investigation.

Google revealed in May that it had "mistakenly" collected personal information from unsecured Wi-Fi networks while collecting images for its Street View service, which provides street-level pictures of addresses.

Blumenthal said the states would take appropriate steps including legal action to obtain "complete, comprehensive answers."

Officials Defend E-Health Standard As Work In Progress

July 21, 2010

Standards that define what constitutes an official electronic health record aren't strict enough to justify the billions of dollars in incentives the government plans to pay physicians and hospitals to install the systems, Republican lawmakers said Tuesday.

At a House Ways and Means Health Subcommittee hearing, officials from the Health and Human Services Department defended the recently released "meaningful use" standards, requirements and expectations that health providers must meet when applying for funding to pay for the adoption of the e-records, Nextgov.com reported.

The regulations were designed to accommodate diverse communities looking to move away from paper-based records systems, they said.

The Office of the National Coordinator for Health Information Technology announced in June a temporary certification program for electronic health records programs, and the Centers for Medicare and Medicaid Services issued on July 13 a final rule setting standards for health care providers that want incentive payments for adopting EHR systems.

Some lawmakers expressed concern that the final rule watered down the meaningful use requirements. The regulations represent a missed opportunity to improve patient care and reduce waste because the standards are lower than expected, said Health Subcommittee ranking member Wally Herger, R-Calif. He said he expected a better return on the $36 billion investment in incentive payments to providers.

For example, lawmakers said health care providers aren't required to electronically record lab test results, nor are they asked to exchange data. They also questioned whether physicians would create electronic records only for simple cases to meet minimum use standards and ignore e-records for more vulnerable patients.

According to David Blumenthal, national coordinator for health IT, HHS will place higher demands on providers in the future. The recent standards are the first in a series of rules and apply only to incentives payments before 2013. Two additional stages for rolling out electronic records will be released, and will have stricter requirements, he said. To read more, click here.

July
20

FCC Report: U.S. Not Making 'Reasonable' Broadband Progress

July 20, 2010

The FCC Tuesday issued its much anticipated report on broadband deployment that showed that between 14 million and 24 million Americans still lack access to broadband Internet service and have little prospects of obtaining it, statistics it says show the United States is not making progress toward ensuring universal access.

The FCC said its findings underscore the need to implement key recommendations in its national broadband plan to help address the availability gap highlighted by the 143-page report. These include overhauling the FCC's universal service program, which subsidizes telecommunications service in rural and high-cost areas, deploying additional spectrum for mobile broadband, collecting better broadband data, and decreasing barriers to infrastructure investment.

In addition, the commission noted that it has updated its standard - determined by speed of the Internet service - for broadband service from the decade-old 200 kilobits per second to 4 megabits per second (mbps).

"Taking account of the millions of Americans who, despite years of waiting, still have little prospect of getting broadband deployed to their homes, we must conclude that broadband is not being deployed to all Americans in a reasonable and timely fashion," FCC Chairman Julius Genachowski said in a statement on the report. "Fortunately, the national broadband plan has charted a course to accelerate broadband investment and help ensure that all Americans can connect to the vital infrastructure of the 21st century"

The report, however, was met with sharp criticism even from within the commission where the FCC's two GOP members disputed the report's central conclusion.

Rush: Regulatory Certainty Will Help Business

July 20, 2010

Regulatory certainty fosters, not hinders, early-stage business investment, a key House Energy and Commerce lawmaker said Tuesday.

"We have come to a point where the dominant technologies that power communications and the creation and delivery of media content have outgrown much of our obsolete regulatory regime and many of those deadlocked approaches," Commerce Trade and Consumer Protection Subcommittee Chairman Bobby Rush, D-Ill., said Tuesday during a telecom conference convened by the Minority Media and Telecom Council.

However, he declined to comment on whether the updated regulatory regime should include reclassifying some aspects of broadband as a telecommunications service as proposed by FCC Chairman Julius Genachowski. Rush has been among those lawmakers who have been critical of Genachowski's plan.

Broadband providers and other critics of the plan have argued that Genachowski's "third way" proposal, offered in response to an April federal appeals court decision that undermined the FCC's authority over broadband, say it will deter broadband investment and innovation.

Genachowski, who also spoke at the conference, used the opportunity to once again highlight the importance of the FCC's 10-year national broadband plan.

"The costs of digital exclusion are rising," he said, noting the urgent need for minorities to have and use broadband. When asked what the single most important thing the FCC can do to help the minority community access broadband Internet service, he said "unfortunately there is no silver bullet. ... It's implementing all the provisions laid out in the broadband plan."

Action On Privacy Focused In The House

July 20, 2010

While the House is actively examining possible privacy legislation with the latest bill introduced Monday by a key Energy and Commerce lawmaker, at least one key senator says he doesn't see the Senate acting on privacy legislation this year.

Sen. Byron Dorgan, D-N.D., a senior member of the Senate Commerce Committee, has voiced concern about privacy implications of online behavioral advertising. But in a recent interview, he said crafting legislation has proven to be "very complicated," given the importance of advertising to help pay for content on the Internet. And with the limited amount of time left in the congressional legislative calendar, he said he doesn't think the Senate will act on the issue this year.

Still, Dorgan, who is retiring at the end of this Congress, said he believes there needs to be better legislative oversight of the growing online advertising industry.

Lawmakers on the House Energy and Commerce Committee, however, are moving forward on the issue. The Subcommittee on Commerce Trade and Consumer Protection will hold a hearing Thursday on privacy legislation introduced Monday by the panel's chairman, Bobby Rush, D-Ill., and a draft measure from Energy and Commerce Communications Subcommittee Chairman Rick Boucher, D-Va.

Rush's bill would allow Web sites and other firms covered by the bill to use online information collected about users but they must provide clear notice about what information is being collected and how it is used and an opportunity for consumers to opt out. It would require third parties to obtain consent before using consumer information. It does allow Web sites to obtain a safe harbor from some of the bill's provisions if they comply with a self-regulatory program approved by the FTC.

Broadcasters Dispute Need For Retransmission Overhaul

July 20, 2010

The nation's top broadcasters wrote two lawmakers this week voicing concern about their call for changes to the process for providing broadcast programming to cable providers.

Executives from ABC, CBS, Fox television, NBC and Univision as well as the National Association of Broadcasters wrote Reps. Steve Israel, D-N.Y. and Peter King, R-N.Y., Monday to dispute their claims that retransmission consent agreements negotiated between broadcasters and cable providers "are outdated, that they lead to higher subscription rates, and that the government should somehow intervene."

The broadcasters noted that the retransmission consent process was created by Congress in 1992 as a way for broadcasters to receive "fair value compensation" for their programming from cable providers and other pay-tv providers. They noted that the current process has worked well for the most part and that service to cable viewers has only been disrupted in a "tiny handful of cases" for a short time. A retransmission dispute in March between Cablevision and Disney, which owns ABC, led to a short disruption in ABC programming for viewers in the New York Area.

The broadcast executives also disputed claims that the retransmission agreements have led to higher cable prices.

"There is not a shred of evidence to suggest that the simple fairness of sharing revenues with the broadcasters will force cable companies to hike rates on consumers. Indeed, the Congress should not abet the cable companies' implied threat that absent a federal bailout, they will punish viewers with higher bills," they wrote, adding that, "It is our sincere hope that you will take these findings and facts into account and reconsider
your call for changes to what has been an effective and successful federal policy."

Last week, cable operators, consumer groups, independent broadcasters, satellite providers, and telecommunications firms launched a new coalition to prod Congress and the FCC to overhaul the retransmission process, an effort broadcasters staunchly oppose.

July
19

Inspector General: Tax E-file System Is Not Error-Free

July 19, 2010

Security vulnerabilities in the Internal Revenue Service's electronic tax filing system persist, according to a new report from the inspector general, despite previous claims from the agency that those weaknesses had been fixed.

The IRS reported in December 2008 that it resolved 10 of 13 previously identified security vulnerabilities in its Modernized e-File system, but the agency conducted routine system tests in January 2010 that showed only two of the problems were eliminated.

The Treasury Inspector General for Tax Administration analyzed the weaknesses and found the agency's methods for resolving the issues were not always adequately assessed.

Continue reading.

Password Practices

July 19, 2010

Cybersecurity in government has been a punching bag for years. Most experts agree it's pretty bad -- scary bad. But when it comes to passwords, federal managers are more careful than their private sector counterparts.

In a recent cybersecurity survey conducted by the Government Business Council, a Nextgov sister organization at Atlantic Media, about three-quarters of respondents said they always develop unique personal passwords.

Continue reading.

Minerals Management Service's Replacement Still Has No Web Site

July 19, 2010

The homepage of the bureau that replaced the now-defunct Minerals Management Service seems to be as opaque as the former organization that has been blamed for lax oversight of the energy industry, open government advocates said.

The Obama administration announced in May that MMS' energy development, enforcement and revenue collection functions would be separated into independent offices. A month later, shortly after the Interior Department began reorganizing MMS, its website went dark, except for a message stating the site would be redone in a few days ...

Continued reading.

From This Week's CongressDaily Outlook

July 19, 2010


Public safety officials -- police, emergency communications professionals, and others -- plan to lobby Capitol Hill this week to convince lawmakers to reallocate the D-block of spectrum for the creation of a nationwide interoperable public safety broadband network. This pits the public safety alliance against the FCC, which has proposed auctioning the D-block to commercial bidders and using the proceeds to support the public safety broadband network.

According to the alliance, the FCC's proposal won't leave the public safety community with a sufficient amount of spectrum to meet their needs.

Meanwhile, it will be a who's who of the telecommunications world today and Tuesday at the eighth annual Access to Capital and Telecom Policy Conference convened by the Minority Media & Telecommunications Council.


Continue reading (subscription required).

July
16

The Week Ahead Features Minority Media Telecom Conference

July 16, 2010

There are several tech and telecom-related events next week. Here are some of the highlights:

Monday:
The Minority Media and Telecom Council will host its two-day eighth annual Access to Capital and Telecommunications Policy conference starting at 8 a.m. Speakers include FCC members Meredith Baker, Mignon Clyburn, Michael Copps and Robert McDowell. Industry officials include Information Technology Industry Council President Dean Garfield, National Cable and Telecommunications Association President Kyle McSlarrow, and National Association of Broadcasters President Gordon Smith.

Tuesday:
The Minority Media and Telecom Council will host the second day of its eighth annual Access to Capital and Telecommunications Policy conference beginning at 8 a.m. Speakers include House Energy and Commerce Subcommittee on Commerce, Trade and Consumer Protection Chairman Bobby Rush, D-Ill., and National Telecommunications and Information Administration Chief of Staff Thomas Power.

The House Ways and Means Health Subcommittee will hold a 1 p.m. hearing on efforts to promote the adoption and "meaningful use" of health information technology.

Wednesday:
The Brookings Institution will host a policy forum starting at 10 a.m. on ways to enhance public sector adoption of cloud computing.

The House Financial Services Committee will hold a hearing at 1 p.m. on the Internet Gambling Regulation, Consumer Protection and Enforcement Act.

The Public Safety Alliance will hold a news conference at 2:30 p.m. on the group's efforts to lobby Congress to support legislation that would re-allocate the D-block of spectrum for public safety use.

The Information Technology and Innovation Foundation (ITIF) will hold a 2:30 p.m. forum on the United States and Organization for Economic Cooperation and Development (OECD) innovation policy. Speakers include federal Chief Technology Officer Aneesh Chopra, Andrew Wyckoff, the OECD's director of science, technology and industry, and U.S. Ambassador to the OECD Karen Kornbluh.

Thursday:
Cisco will hold a Webcast at noon to release its Midyear Security Threat Report.

July
15

Public Safety Officials To Launch Lobbying Blitz For D-Block

July 15, 2010

Police chiefs, sheriffs, emergency communications professionals and others plan a lobbying blitz next week on Capitol Hill in an effort to persuade lawmakers to reallocate the D-block of spectrum for the creation of a nationwide interoperable public safety broadband network.

Members of the Public Safety Alliance will be meeting with lawmakers and urging senators to introduce companion legislation to a bill offered by House Homeland Security ranking member Peter King, R-N.Y. that would allocate the D-block to public safety officials.

The alliance opposes a proposal from the FCC to auction off the D-block to commercial bidders and use the proceeds to help finance the creation of nationwide interoperable public safety broadband network. The FCC also has called for allocating 10 megahertz of spectrum for the network and also giving public safety officials priority access to roam on commercial networks during emergencies.

House Energy and Commerce Communications Subcommittee Chairman Rick Boucher, D-Va., is crafting a bill that would implement the FCC's plans and also authorize additional funding for the public safety network to make up for any shortfalls from the auction of the D-block.

The FCC's proposal is backed by some public safety groups including the Fraternal Order of Police and the International Association of Firefighters. James Barnett, chief of the FCC's Public Safety and Homeland Security Bureau, said recently that the FCC's plan is aimed at ensuring that a national interoperable broadband public safety network moves from "talk to reality," by providing a funding source for the network that the commission said could cost as much as $16 billion to build.

The alliance, however, has argued that the FCC's proposal is inadequate to meet public safety officials' needs and that they need more than the 10 megahertz of spectrum for a public safety network.

Movie Industry Beats Back Online Futures Exchanges

July 15, 2010

mpaa.gifThe movie industry is declaring victory Thursday in its bid to block the creation of online futures exchanges based on motion picture box office receipts.

The Senate cleared a financial regulatory bill that includes a provision that would block the creation of movie futures exchanges. President Obama is expected to sign the bill next week.

The Motion Picture Association of America and other movie industry groups turned to Congress for help after the industry's efforts to persuade the Commodity Futures Trading Commission to block the exchanges failed.

The CFTC last month approved the first contract that can be traded on one of the two online movie futures exchanges that have been proposed. Supporters argue that such exchanges will help the movie industry by expanding the depth and number of financing sources available to the industry and offer an opportunity to hedge against the high risk of making movies.

The movie industry, however, staunchly opposes such exchanges, saying they are akin to gambling, are highly susceptible to potential manipulation, and could cause economic harm to an industry that employs many Americans.

"After proposals for these speculative gaming platforms came to light, our industry came together to oppose these plans with an unprecedented coalition that included entertainment industry workers, creators, independent producers and distributors, studios and theater owners," MPAA President Bob Pisano said in a statement. "We are pleased with final passage of this important legislation."

Klobuchar Stirs Up Debate Over Facebook's Online Safety Efforts

July 15, 2010

Sen. Amy Klobuchar, D-Minn., Thursday urged Facebook to add a feature to its Web site similar to one recently added to its United Kingdom site that would link teens to information about safe Internet surfing habits.

The new safety application aimed at children 13-18 and launched in partnership with a British child protection agency connects users to information about online safety.

"There is no single solution to making the Internet safe," she wrote in the letter to Facebook CEO Mark Zuckerberg. "But a prominent button at the top of every page that links to resources and information about Internet safety would go a long way to empower and inform teenagers and parents."

Facebook spokesman Andrew Noyes noted that the social networking site has taken aggressive steps to address Internet safety through the creation of a Safety Advisory Board, which includes online safety advocates who provide advice on the issue, as well as through its safety center and a new education partnership with the National PTA.

"Facebook offers reporting links throughout the site and we believe the 'Help' links on every page provide an effective mechanism for people to reach our Safety Center, which is featured prominently on the landing page," Noyes said. "We continue to concentrate our efforts on expanding safety information on the site and partnering with experts to create opportunities to educate people about online safety in school, at home and elsewhere."

But Klobuchar's letter appears to have raised some eyebrows. In a blog post, Berin Szoka of the Progress and Freedom Foundation chided Klobuchar for asking Facebook for information about Internet security practices that is readily available on its site. He also notes that while the safety button was promoted on the UK site it is available to any Facebook user.

While saying its fair to ask if Facebook could do more, Szoka claimed that "with its incendiary rhetoric and easily answered questions, Klobuchar's letter seems intended more to make headlines and score political points than to really move the ball forward on her stated objective, which we should all share: enhancing education and empowerment solutions."

The letter was released on the same day that the Senate Commerce Committee, which Klobuchar is a member of, was holding a hearing on protecting youth online.

In a brief interview, Klobuchar acknowledged the safe-Internet surfing efforts Facebook has promoted and said she wasn't attacking the social networking site. Instead, she said she was inquiring about offering a safety button feature on Facebook's U.S. site, adding "if they can offer it in the U.K., why not in the U.S."

Later Thursday afternoon, Klobuchar put out a second press release on the issue saying, "While Facebook does provide users with a 'Help' page that includes links to safety resources, the safety information unfortunately requires clicking though multiple pages to arrive at Facebook's safety center. ... Child protection experts tell me that if a reporting mechanism is not easy to find and use, kids won't use it."

FCC Launches Rural Healthcare Initiative

July 15, 2010

The FCC Thursday launched an effort to tap the Universal Service Fund to establish a $400 million program aimed at extending broadband service to rural healthcare providers, CongressDaily reported.

The changes, consistent with goals laid out in the commission's 10-year national broadband plan, are aimed at expanding eligible applicants from 9,800 healthcare providers to 12,000 by including providers who may not operate within hospitals, such as skilled nursing facilities, off-site administrative offices and data centers, and renal dialysis centers.

The initiative, backed by a unanimous vote at Thursday's FCC meeting, would modify a three-year-old pilot program that provides high-speed Internet access to rural health clinics under the Universal Service Fund, a $9 billion-a-year pool of money collected from phone companies to subsidize telecommunications services in rural areas. To read more, click here.(Subscription required)

Bill Would Expand Access To Technology

July 15, 2010

The Senate Commerce Committee approved legislation Thursday that would require that new technologies such as the Internet and smart phones be accessible to those that are hearing and vision impaired.

The legislation (S. 3304) would update existing rules requiring that technology be accessible to the hearing and vision impaired by ensuring that smart mobile devices such as an iPhone or Blackberry are hearing aid compatible and would require that television shows streamed on the Internet include closed captioning.

"We must make sure that the programs and policies we have in place to support Americans with disabilities keep up with the rapidly increasing speed of changing technology," Senate Commerce Chairman John (Jay) Rockefeller, D-W.Va., said in a statement. "This bill will help lead to greater communications accessibility for Americans with disabilities, and that is a very good thing."

The wireless industry group CTIA and other telecom providers raised concerns about some provisions in the bill, including the standards for achieving some of the accessibility requirements. In a statement, CTIA President and CEO Steve Largent said, "The collaborative, bipartisan work leading up to today's markup has produced a bill that addresses many of the concerns CTIA had with the bill at the time of its introduction. While there are areas where CTIA would like to see additional changes, we are hopeful that our remaining concerns can be addressed before enactment."

The committee adopted several amendments to the bill. The panel approved a substitute that included as its text a modified version of the technology accessibility bill the House Energy and Commerce Communications Subcommittee approved last month. Changes made by the Senate panel include language limiting the scope of the bill "to advanced communications and the devices that provide it as well as modifications in the standard and factor applied to the effort the manufacturer or service provider makes to achieve accessibility," according to a Senate aide.

Other changes include amendments offered by Sen. Maria Cantwell, D-Wash., that would modify language related to closed captioning to allow the FCC to waive requirements on its own or in response to a petition from a manufacturer and another that would require an advisory committee created by the bill to conduct a national survey of those with disabilities to seek input on the "most effective and efficient technologies and methods by which to enable access to emergency services by individuals with disabilities."

4G Comes To Nations Capital

July 15, 2010

From this morning's Earlybird:

• "Amid ongoing debate in Washington about broadband and expanded broadband access, Clearwire has launched a 4G wireless network in the capital, unveiling the next generation of wireless technology and stirring talk in telecom policy circles around town about a new competitor in the industry," Politico reports.

• "Apple Inc. said Wednesday that it will hold a news conference Friday concerning its iPhone 4, which is facing mounting criticism over reception problems tied to antenna design," the Wall Street Journal (subscription) reports.

July
14

UPDATED: FCC Resumes Closed-Door Sessions with Telecom Lobbyists

July 14, 2010

They're at it again behind closed doors. Powerful telecommunications industry lobbyists were back at the FCC Tuesday for another round of unannounced meetings with top agency officials to discuss a possible legislative deal on network neutrality.

Major telecom and cable companies have indicated a willingness to cede ground on net neutrality if the Democratic-led FCC drops plans to regulate broadband as a public utility. Read our previous coverage here (subscription required)

In the room were some of the industry's biggest guns: AT&T's Jim Cicconi, Verizon's Tom Tauke and Kyle McSlarrow, head of the National Cable and Telecommunications Association, along with three of Chairman Julius Genachowski's senior advisers.

According to the public disclosure of the meeting, no consumer advocates participated. Groups such as the media watchdog Free Press have complained loudly about their exclusion from the negotiating process.

UPDATE: Under pressure from critics, the FCC has reversed course on its public disclosure requirements for these meetings. The agency originally argued that while no disclosure was required, it would post summaries of the meetings anyway on its related broadband.gov website. Now, the commission says it has been requiring formal "ex parte" disclosures that are searchable on its main site.

The parties explored possible legislative language banning discriminatory online behavior by broadband providers - an idea these and other industry lobbyists strongly opposed until now.

They also discussed applying "some" aspects of the FCC's net neutrality principles to wireless carriers. Watchdogs insist all of the principles should apply.

House Energy and Commerce Communications Subcommittee Chairman Rick Boucher, D-Va., has been holding similar meetings with industry stakeholders on a parallel congressional track. Read our coverage here. (subscription required)

For a window into the world of backroom dealmaking in Washington, click here

Feds Nearing Halfway Mark With $7.2 Billion Stimulus Funding

July 14, 2010

Federal regulators have distributed nearly half of the $7.2 billion in stimulus dollars set aside for extending broadband's reach, particularly to rural areas, with investments in 270 projects nationwide, according to a report released Wednesday by the Council of Economic Advisors.

All fifty states and a few territories have received a total of $3.1 billion distributed by the Commerce Department's National Telecommunications and Information Administration and the Agriculture Department's Rural Utilities Service.

Most of the NTIA stimulus money distributed so far ($1.7 billion) will be spent on building and improving 50,000 miles of broadband infrastructure for underserved communities, the report says. The RUS, which already has spent $1.4 billion, is focused on expanding high-speed Internet access in rural areas.

Demand for the stimulus money far exceeds the $4.1 billion left in the pot: both agencies have received a combined 3,800 applications requesting more than $52 billion in support.

Broadband money accounts for about two percent of the Recovery Act funds dedicated to public investments, which is $319 billion, according to CEA Chair Christina Romer.

Read the report here

Broadcasters Hit Back At Pay-TV Alliance

July 14, 2010

The National Association of Broadcasters hit back Wednesday at a group of 31 pay-television providers, independent networks and consumer groups that created an alliance aimed at pushing the FCC and Congress to reform the process for acquiring broadcast programming.

The American Television Alliance says it plans to lobby Congress and the FCC to overhaul retransmission consent rules, the procedure by which broadcasters and pay-TV providers negotiate fees to deliver programming. The alliance argues that consumers suffer in the form of higher rates and possible blackouts when broadcasters demand higher fees and threaten to withhold their programming during these negotiations.

"The notion that Time Warner and its Big Pay TV allies are part of a group designed to 'protect consumers' is about as credible as BP executives joining Greenpeace," NAB spokesman Dennis Wharton said in a statement. "Pay TV built its business on the backs of broadcast programming, and it is not unreasonable for local TV stations to expect fair compensation for the most-watched TV shows."

He added that while cable providers complain about the fees they pay broadcasters for their content, the amount cable providers charge their customers has increased at a much higher rate.

Bill Would Target Data Breaches

July 14, 2010

Two Senate lawmakers introduced a bill Wednesday that would require financial institutions, retailers, federal agencies and others to do more to safeguard sensitive information and to investigate security breaches.

The bill offered by Sens. Tom Carper, D-Del., and Robert Bennett, R-Utah also would require these entities to notify consumers when there is a "substantial" risk of identity theft or fraud becauase of a security breach involving their sensitive information. It would apply to retailers who take credit card information, data brokers who compile private information and government agencies that hold nonpublic personal information, according to a news release.

The senators note that while most states have enacted laws requiring that consumers be notified of security breaches, they have differing and conflicting standards that pose a burden to businesses. Under the law, regulators of entities that do not comply would have the authority to levy fines, require corrective measures or even bar individuals from working in their respective industries.

"We need to replace the current patchwork of state and federal regulations for identity theft with a national law that provides uniform protections across the
country," Carper said. "This comprehensive approach will better serve consumers by
making it easier for businesses and government agencies to take the steps necessary to adequately protect all Americans from identity theft and account fraud."

TechAmerica Panel To Examine Federal IT Purchasing Process

July 14, 2010

In response to the Obama administration's decision to halt or review some federal information technology system projects, the TechAmerica Foundation launched a new commission Wednesday to provide recommendations for improving the way federal government purchases and implements IT systems.

Last month, the Office of Management and Budget announced it had halted federal financial system modernizations, about 30 projects, to shrink the scope and timetable of these projects, which were found to be behind schedule and over budget.

"For too long the government has been unable to deliver our citizens the full potential of government services because of its reliance on outdated, inflexible procurement laws and regulations and an ill-equipped, overburdened acquisition workforce," TechAmerica Foundation chairman Phil Bond said in a statement. "We fully expect the commission's recommendations to carry weight within the administration and to result in substantive improvements," he added.

The new group, to be known as the Commission on Government Technology Opportunity in the 21st Century (GTO-21), is currently seeking members. Linda Gooden, executive vice president of Lockheed Martin's information systems and global services, and Steve Kelman, a professor at Harvard's Kennedy School of Government, will serve as co-chairmen of the panel.

EU Oks Comcast-NBCU Merger

July 14, 2010

The European Commission Wednesday approved Comcast's merger with NBC Universal, saying it would not thwart effective competition in the European Union's member states.

In a statement, the commission noted that Comcast owns no cable assets in the EU. The commission, the EU's regulatory arm, said that in the EU the merger "leads to horizontal overlaps between the activities of Comcast, MGM and NBC Universal in various markets for the licensing of TV programs to pay-TV and free TV operators, the sale of online advertising space, the production of motion pictures for theatrical distribution and the sale of home entertainment content."

However, the commission said that unlike in the U.S., in the EU the merger wouldn't lead to a vertical relationship between Comcast's cable distribution platform and NBC Universal's programming content.

Overall, the commission said it determined that the merged company's market share would remain very limited in the EU.

The merger is staunchly opposed by some U.S. consumer and public interest groups and others who claim the transaction will lead to higher prices, fewer choices and less competition in the United States.

The merger is still being reviewed in the United States by the FCC and Justice Department.

R. Dale Grimes, who heads the antitrust and trade practice at the Bass, Berry & Sims law firm, said he doubts the EU's decision on the merger will have much influence on the U.S. approval process.

"The EU focused on the fact that Comcast and NBC have a minor presence in its jurisdiction so the merger would have little effect on competition," Grimes said. "In the U.S., Comcast and NBC obviously have a much more significant presence and so the facts are very different."

New Coalition To Battle Broadcasters On Transmission Rules

July 14, 2010

A coalition of 31 cable operators, consumer groups, independent broadcasters, satellite providers, and telecommunications firms on Wednesday launched a lobbying effort to battle broadcasters over the issue of retransmission consent rules.

The group, which dubs itself the American Television Alliance, aims to prod Congress and the FCC to begin a process to reform rules that require cable companies to get permission from broadcasters to distribute their programs.

The alliance members say these rules end up favoring broadcasters in fee negotiations because a dispute can result in the broadcaster pulling its content from a cable operator. In March, for example, Cablevision and Disney, which owns ABC, got into a fee dispute and the ABC channel that provides programming in Connecticut, New Jersey and New York went dark in the hours before the Academy Awards broadcast, infuriating customers.

"The law meant to protect the public airwaves is being used as a hammer," said Pat Baldwin, senior vice president of corporate development for Retirement Living TV, a member of the alliance.

American Cable Association President and CEO Matt Polka said consumers are "hurt" because cable companies pass higher fees onto their customers to pay for the increased costs of programming from broadcasters.

The group supports a petition by cable companies filed at the FCC in March 2010 urging the agency to begin a rulemaking on the retransmission process. The petition argues that the FCC's current rules do not account for changes in the video programming distribution market, and it proposes reforms including the creation of a dispute resolution mechanism and a requirement that broadcasters' continue to provide content to TV distributors when they are in a dispute.

"It's high time for the FCC to launch a rulemaking quickly," Polka said. He noted that FCC Chairman Julius Genachowski told a Senate committee earlier this year that a rulemaking was under review.

July
13

Critics Dominate Latest Hearing On Comcast-NBC Merger

July 13, 2010

Most panelists expressed serious concern, if not outright objection, to the proposed $30 billion merger of Comcast and NBC Universal at a public hearing the FCC held in Chicago Tuesday.

"Broadband and the Internet must not become the province of gatekeepers and toll booth collectors," Democratic Commissioner Michael Copps said in his opening remarks at the seventh forum held by the FCC or Congress to evaluate the risks and benefits of the potential union. Copps was the only commissioner to attend the field hearing.

Critics say they worry that the merger will give Comcast a stranglehold on the industry that would result in less competition and less diversity in media ownership.

"I think Comcast will use the enhanced market power to drive up the consumer prices across the board," Tyrone Brown, president of the Media Access Project, said. His group opposes the merger.

Industry representatives urged the FCC to only approve the union with certain conditions. "We have the experience and history to say that the FCC must impose robust, complete and long-lasting conditions on this deal, or else it will result in material harm to consumers and competition," said Colleen Abdoulah, president and CEO of WOW! Internet, Cable and Phone.

Comcast competitors say they fear that if the companies merge they will be denied fair and equal access to the broadband needed to deliver their product.

Free Press, among the loudest critics of the deal, said it doubts the ability of government to institute meaningful conditions. "With this deal, the anticompetitive incentives would be part of the DNA of the merged company making conditions with a shelf life about as helpful as putting a Band-Aid on a broken leg," Free Press President and CEO Josh Silver said.

Comcast Senior Vice President Joe Waz, however, defended Comcast's pledges in a blog post Tuesday, saying the merger enjoys "the support of hundreds of organizations who know Comcast and NBCU and can attest to the fact that we are serious about our commitment to local communities. We've also enjoyed the support of many independent programmers, advertisers, technology companies, and other stakeholders. We think that all of this support, along with the agreements we've reached with stakeholders, makes a compelling case for timely completion of the federal approvals process this year."

FCC Weighing Options In Response To Indecency Decision

July 13, 2010

FCC Chairman Julius Genachowski issued a one-sentence statement Tuesday in response to Tuesday's federal appeals court ruling striking down the commission's indecency policy, saying the agency is weighing its options.

"We're reviewing the court's decision in light of our commitment to protect children, empower parents, and uphold the First Amendment," Genachowski said.

The U.S. Court of Appeals for the Second Circuit in New York ruled that the policy "is unconstitutionally vague." Under the rules, the FCC imposed fines on television and radio stations that aired what regulators deemed to be indecent or profane content, and was even able to revoke the licenses of violators.

National Association of Broadcasters spokesman Dennis Wharton said his group supports the decision. "We believe that responsible decision making by network and local station executives, coupled with program blocking technologies like the V-chip, is far preferable to government regulation of program content," he said.

The Parents Television Council, which filed a brief in support of the FCC's policy, blasted the decision and urged the commission to appeal.

"Let's be clear about what has happened here today: A three-judge panel in New York once again has authorized the broadcast networks unbridled use of the 'f-word' at any time of the day, even in front of children," council President Tim Winter said in a statement. "The court substituted its own opinion for that of the Supreme Court, the Congress of the United States, and the overwhelming majority of the American people."

Appeals Court Strikes Down FCC Indecency Policy

July 13, 2010

A federal appeals court Tuesday struck down the FCC's indecency policy, saying it violates the First Amendment.

"We now hold that the FCC's policy violates the First Amendment because it is unconstitutionally vague, creating a chilling effect that goes far beyond the fleeting expletives at issue here," the U.S. Court of Appeals for the Second Circuit in New York said in its ruling. Fox, CBS and other broadcast networks and their affiliates had challenged the FCC's expanded authority to fine stations that air "fleeting expletives" on live television and radio broadcasts.

In April 2009, the Supreme Court upheld the FCC's authority to craft an indecency policy but left the decision on whether the policy itself was constitutional to the appeals court.

Media Access Project Senior Vice President and Policy Director Andrew Jay Schwartzman said the FCC's indecency rules struck down by the appeals court "are irredeemably vague and interfere with the creative process. Today's decision vindicates that argument. The next stop is the Supreme Court, and we're confident that the justices will affirm this decision."

FCC Restarts The Clock On Comcast NBCU Merger

July 13, 2010

The FCC notified Comcast and NBC Universal Tuesday that it has restarted the clock on the 180-day period it is using to evaluate their proposed merger.

The commission had paused its evaluation on June 11 to give the companies time to resubmit responses that contained "certain deficiencies" to information sought by the FCC. The agency restarted its evaluation clock on July 6 after receiving revised responses from both firms. The FCC said it is now into day 45 of its formal evaluation into whether to allow the nation's biggest cable TV provider Comcast to take a majority stake in NBCU, which controls a major broadcast network, a Hollywood studio and several cable networks.

The FCC is holding a public forum in Chicago Tuesday afternoon on the proposed merger, which is opposed by many consumer and public interest groups who say it will harm consumers and competition.

HHS Issues Final Rule On 'Meaningful Use' Of E-Health Records

July 13, 2010

The Health and Human Services Department issued its final regulation Tuesday on what doctors and hospitals need to do to get a share of funding to help in the adoption of electronic medical records, saying it made numerous changes to address concerns that the proposed rule was too rigid.

The Health Information Technology for Economic and Clinical Health Act, which was adopted as part of the 2009 economic stimulus package, included incentive payments through Medicare and Medicaid for doctors and hospitals to encourage the use of electronic health records, which supporters say will improve health care delivery, reduce costs and provide patients with more information about their care

Up to $27 billion will be available over 10 years for the incentive payments, allowing health professionals to obtain as much as $44,000 under Medicare and $64,700 under Medicaid, while hospitals could receive millions of dollars to help with the implementation and use of "certified" electronic health professionals.

"In the original proposal, we identified a broad set of objectives, all of which would need to be met. This included 23 objectives for hospitals and 25 for clinicians," National Health Information Technology Coordinator David Blumenthal and Marilyn Tavenner, principal deputy administrator of the Centers for Medicare and Medicaid Services, wrote in summarizing the new rule Tuesday in the New England Journal of Medicine. HHS "received many comments that this approach was too demanding and inflexible, an all-or-nothing test that too few providers would be likely to pass.

The final rule defining "meaningful use" of electronic health records will give physicians more flexibility in meeting the objectives, the department said. HHS has divided its objectives into two groups including a core set of objectives doctors and hospitals will have to meet. Doctors and hospitals will then be able to choose which five out of an additional 10 objectives they will comply with over the next two years, while deferring compliance with the remaining items, Blumenthal said during a news conference announcing the rule.

Blumenthal and Tavenner said the core objectives "comprise basic functions that enable [electronic health records] to support improved health care. As a start, these include the tasks essential to creating any medical record, including the entry of basic data: patients' vital signs and demographics, active medications and allergies, up-to-date problem lists of current and active diagnoses, and smoking status."

Blumenthal said HHS also "loosened some of the achievement levels" in the proposed rule. For example, one of the core objectives called on providers to prescribe prescriptions electronically. The proposed rule would have required up to 75 percent of a providers' prescriptions to be done electronically, while the final rule has lowered that to 40 percent.

HHS also announced a second rule outlining the standards, and certification criteria for the certification of electronic health records technology.

"The final rule is very similar to the interim final rule. However, in response to public comments, the final rule clarifies or revises certain standards and certification criteria," the department said. "As noted in the final rule, some of the adopted certification criteria were revised to realign with changes to the Medicare and Medicaid [electronic health record] incentive programs final rule."

Patti Dodgen, CEO of the health IT consulting firm Hielix, said the final meaningful use rule addressed many of the concerns expressed about the interim rule. "They did a great job in coming up with a solution that looked pretty intractable," she said. "It's aggressive but achievable."

DHS Criticized For Poor Oversight Of Virtual Fence Project

July 13, 2010

A troubled program to install sensors and cameras to detect illegal immigrants entering the United States from Mexico experienced severe cost overruns and delays because Department of Homeland Security officials did not properly check up on the contractor's work, according to an inspector general report released late last week.

Nextgov.com reported that the report is the latest blow to SBInet, the technology component of DHS' Secure Border Initiative, which includes a network of sensors, cameras, radar and control towers that was being built to detect individuals crossing into the United States from Mexico. The department awarded the initial $2.5 billion contract to Boeing Co. in September 2006, and as of February 2010 had awarded the company 13 task orders worth approximately $1.2 billion.

The DHS inspector general reviewed four task orders awarded in fiscal 2008 to determine whether the department's program office had implemented adequate controls for avoiding cost overruns and meeting milestones. But the auditor found Customs and Border Protection had "to improve its control of contractor activities on the SBI technology program."

Specifically, program officials did not ensure contractors maintained up-to-date information in the project's management software tool designed to alert managers to potential cost overruns and program delays, according to the report.

"Without accurate baseline information to reflect cost and schedule variances, management is hampered in its ability to make viable operational decisions," the inspector general said. The report noted that since the audit, CBP has put in place surveillance measures to ensure contractors keep the agency informed of progress.

Program officials also failed to ensure that one milestone was properly completed before progressing to the next phase, increasing the risk of significant rework and associated project delays, according to the report. DHS managers also did not document reviews and acceptances of the contractor's progress. To read more, click here.

July
12

Microsoft-Backed Forum Includes Criticism of Broadband Reclassification

July 12, 2010

During a Monday event sponsored by the Microsoft-funded Americans for Technology Leadership, Karen Kerrigan, president and CEO of the Small Business and Entrepreneurship Council, expressed her group's categorical opposition to the proposed reclassification of broadband as a public utility. (read more about the council's opposition here)

"The FCC, in our opinion, hasn't demonstrated the need to regulate [broadband]," Kerrigan stated. She added that the regulatory climate in Washington, in general, threatens to undermine the nation's economic recovery.

The event was held near the Washington Convention Center, where Microsoft is holding its Worldwide Partnership Conference today through Thursday with more than 12,000 attendees. Americans for Technology Leadership, which doesn't mention the Microsoft connection on its website, has been accused in the past of being an Astroturf lobbying group (see related story).

ATL describes itself as a "broad-based coalition of technology professionals, consumers, and organizations dedicated to limiting government regulation of technology" and "fostering competitive market solutions."

Kerrigan participated in a panel discussion with Joseph Fuhr, professor of economics at Widener University and Shahin Kohan, CEO of Focal Technology Solutions, Inc., to discuss the role technology must play to help rebuild the economy.

Microsoft's Ballmer: We're 'Cirrus' About Cloud Computing's Potential

July 12, 2010

Microsoft CEO Steven Ballmer kicked off the software giant's Worldwide Partner Conference Monday morning with a speech outlining the company's vision for a technology that could soar: cloud computing.

"If you don't want to move to the cloud, we're not your folks," said Ballmer, who repeatedly emphasized the value proposition of the nascent technology, which shifts computer functions like data storage and word processing to the Internet.

The cloud will enable customers to streamline their operations, improve agility, and spend more money on innovation and less on IT and maintenance, Ballmer argued. Starbucks, Nokia and McDonalds, according to the CEO, are among the Fortune 500 companies working with Microsoft to incorporate the cloud into their operations.

Updated and corrected: The conference, held in the Washington DC Convention Center, is being attended by 9500 business partners and an additional 3000 Microsoft employees.

OMB To Meet With Agencies To Discuss Financial Systems

July 12, 2010

White House officials next week will start meeting individually with federal agencies to lift a freeze on the development of financial system projects they instituted in June, officials said on Friday.

The Office of Management and Budget on June 28 halted all federal financial system modernizations -- about 30 projects -- to shrink their scope and timetable in hopes of improving the cost-efficiency of the networks. After a govermentwide review of financial systems found most were behind schedule and over budget, OMB diagnosed the problem: the systems' requirements were beyond what agencies actually need.

Continue reading on NextGov.com.

From This Week's CongressDaily Outlook

July 12, 2010

For the second week in a row, the federal review of the proposed Comcast-NBC Universal merger shifts to Chicago, where the FCC holds a Tuesday public workshop at Northwestern University.

While the commission has announced 16 participants, including Brian Lawlor, chairman of NBC's Television Affiliates Board, it is taking flak from the watchdog Free Press for including only one of its five members -- Democratic Commissioner Michael Copps -- on the agenda.

Also scheduled to appear are John Flynn, senior counsel to the FCC chairman for transactions, and Susan Crawford, a former special assistant to Obama for science, technology and innovation policy.

Continue reading (subscription required)

Class-Action Suit Against Apple, AT&T Gets OK

July 12, 2010

From this morning's Earlybird:

• "A federal judge says a monopoly abuse lawsuit against Apple Inc. and AT&T Inc.'s mobile phone unit can move forward as a class action," the AP reports. "An amended complaint filed in June 2008 takes issue with Apple's practice of 'locking' iPhones so they can only be used on AT&T's network, and its absolute control over what applications iPhone owners can and cannot install on the gadgets. The lawsuit also says Apple secretly made AT&T its exclusive iPhone partner in the U.S. for five years."

• "American technology companies are under close scrutiny in Germany," the New York Times reports. "Google is being investigated for having errantly collected personal Internet information like e-mail passwords while doing research for its Street View mapping service. Facebook is being investigated for collecting data on non-Facebook users from the mailing lists of active users. And Apple has been asked to explain what kind of information its latest iPhone 4 is storing on users and for how long."

• "China's Ministry of Industry and Information Technology said it had renewed the Chinese operating license of Internet giant Google Inc, confirming an announcement made by the company on Friday," Reuters reports. "Guxiang, a company that operates Google's websites in China, was included in a list of more than 200 companies that had their licenses renewed, which was posted on the ministry's website."

Meg Whitman paid "more than $1 million" for "a stake in a fledgling movie production firm started by none other than Mike Murphy, a very prominent and much-sought-after Republican strategist," the New York Times reports. "In the months before the deal was closed, Mr. Murphy had been flirting with working on the campaign of Ms. Whitman's future rival in the Republican primary for governor, Steve Poizner, the state's insurance commissioner. But he had an about-face."

European Commission Seeks Transatlantic Data Protection Pact

July 12, 2010

European Commission Vice President Viviane Reding called for the creation of a transatlantic data protection agreement late last week at a joint discussion with US Secretary of Homeland Security Janet Napolitano.

"The EU and the US are both committed to the protection of personal data and privacy, even if our systems for doing so are not identical," Reding said in a statement. "Removing protection gaps and discrepancies between the two legal systems and thereby improving legal certainty and reaching a high level of protection for any individual are the goals for this new agreement."

The forum, hosted by the Atlantic Council's Transatlantic Program, marked Reding's first official visit to Washington, DC.

July
9

Cybersecurity Commission Plans Second Major Report for Obama Administration

July 9, 2010

An independent cybersecurity commission is gearing up to issue a second major report aimed at helping the Obama administration organize its efforts to protect federal and private information technology networks. The Commission on Cyber Security for the 44th Presidency, established by the Center for Strategic and International Studies, is reconvening with new members, retired Air Force Lt. Gen. Harry Raduege told an industry conference Thursday.

Raduege, who co-chairs the commission, said new members include Melissa Hathaway, who led the administration's cybersecurity review last year and then returned to the private sector, and Karen Evans, former administrator for e-government and information technology at OMB.

The House Subcommittee on Technology and Innovation will hold a Thursday hearing on ways the government can improve its response to cybersecurity threats.

White House Hands Cyber Oversight to DHS

July 9, 2010

The Department of Homeland Security will, effective immediately, assume primary responsibility for making sure agencies comply with federal information security requirements, sidelining the Office of Management and Budget from administrative duties, according to a memo OMB and the White House cybersecurity coordinator released earlier this week.

The memo is an attempt by OMB and the cybersecurity office to quiet calls from Congress to overhaul how the executive branch manages information security in federal government, Nextgov.com reported.

OMB Director Peter R. Orszag and White House Cybersecurity Coordinator Howard Schmidt issued a memo Tuesday that outlines roles for OMB, the White House and DHS in ensuring federal agencies comply with the requirements of the 2002 Federal Information Security Management Act.

According to the memo, DHS will exercise primary responsibility for checking agencies' compliance with FISMA, including continuous monitoring of information systems' security.

OMB, which previously oversaw most FISMA compliance, will be responsible for submitting the annual report to Congress, developing and approving the cybersecurity portions of the president's budget, overseeing agencies' use of funds, and coordinating with the White House on policy issues.

Schmidt will work with DHS to ensure agencies fulfill FISMA regulations and will coordinate cooperation among agencies.

"Everybody interprets things differently," Schmidt said on Thursday after a speech at a cybersecurity event in Washington hosted by the Armed Forces Communications and Electronics Association. "We are looking to make sure there is clarity out there on stuff the people need to be doing . . . to be secure, which makes [them] FISMA-compliant."

But one former federal chief information officer who is familiar with the government's cybersecurity issues and asked to not be named, believes the memo is a response to Congress' call in a number of bills for the restructuring of cybersecurity oversight. To read more, click here.

Four FCC Regulators To Skip Chicago Workshop on Comcast-NBCU Merger

July 9, 2010

It's the biggest communications mega-merger of the Obama administration and a transaction that could reshape the media landscape for generations. Yet only one of the FCC's five regulators, Democrat Michael Copps, will bother to attend the agency's Tuesday "public workshop" in Chicago on the proposed combination of Comcast and NBC Universal.

That's despite the commission's central role in reviewing the transaction, along with the Justice Department's Antitrust Division, and the rarity of the event. It's the only outside-the-Beltway session the agency has announced on the merger, and will feature an opportunity for everyday citizens to weigh in.

FCC Chairman Julius Genachowski has traveled to Lebanon, India, Qatar, Las Vegas and Los Angeles on official FCC business. And in recent weeks he's set-aside precious time for unannounced, closed-door sessions with high-powered telecommunications lobbyists about cutting a legislative deal on broadband regulation.

Updated: The chairman also found time to swing by Sun Valley, Idaho, this week, following a Fourth of July weekend business trip to Hawaii, to rub elbows with Hollywood moguls and Silicon Valley honchos at an annual conference hosted by the Allen & Co. investment firm.

So why won't he hop a flight to Chicago to hear what hardworking inner city residents and struggling South Side families -- who won't be permitted to speak until five hours into the program -- have to say about this proposed union?

"Copps is presiding over the workshop," the FCC's spokeswoman said. "We wanted to give him the spotlight." She noted that Genachowski would be watching some of the proceedings live from D.C., and needs to prep for the agency's monthly meeting on Thursday. "If the chairman goes, he gets the spotlight." He and other commissioners who can't make it are sending staffers.

Commissioner Mignon Clyburn, who along with Copps urged Genachowski to hold outside-the-Beltway hearings on the merger, also won't attend. Her office wasn't immediately available for comment.

Both of the agency's GOP members will be absent. A staffer with Meredith Atwell Baker said she's not going because the workshop is being held by the Media Bureau and "isn't a commission-level hearing." He added, "Everyone takes a lead from the chairman." An aide to Commissioner Robert McDowell echoed the chairman's excuse: "He will be preparing for the open meeting on July 15."

The Week Ahead

July 9, 2010

There are several tech and telecom-related events next week. Here are some of the highlights:

Monday:
Microsoft holds its week-long Worldwide Partner Conference kicking off with a keynote address at 8 a.m. from Microsoft CEO Steve Ballmer.

Tuesday:
The White House Office of Science and Technology Policy and the federal government's National Nanotechnology Coordination Office holds a workshop beginning at 8 a.m. to solicit ideas on updating the National Nanotechnology Initiative's strategic plan.

Wednesday:
The Brookings Institution is holding a day-long discussion on the "Smart Grid's Future: Evaluating Policy Opportunities and Challenges After the Recovery Act" beginning at 9 a.m. Speakers include federal Chief Technology Officer Aneesh Chopra and Energy Information Administration chief Richard Newell.

Thursday:
The House Science Subcommittee on Technology and Innovation holds a 10 a.m. hearing on "Planning for the Future of Cyber Attack Attribution."

The Senate Commerce Consumer Protection, Product Safety, and Insurance Subcommittee will hold a hearing at 2 p.m. on protecting youth online.

Friday:
The President's Council of Advisors on Science and Technology holds a meeting at 10 a.m. to discuss such issues as science, technology, education and math education and health information technology.

July
8

Critics: FCC Can't Be Trusted To Maintain Broadband Light Touch

July 8, 2010

Critics of the FCC's proposal to reclassify some aspects of broadband as a telecommunications service argued Thursday that while commission Chairman Julius Genachowski has pledged to maintain a light regulatory touch, such promises can't be trusted to be upheld by future members of the agency.

During a discussion on the reclassification issue at the Phoenix Center, a think tank that favors a free-market approach to telecom and technology policies, George Ford, the group's chief economist, argued that "The FCC cannot pre-commit to light touch regulation," as Genachowski proposed, because the commission cannot bind future actions of the agency.

Genachowski offered his "third-way" proposal to reclassifying broadband after the FCC's authority over broadband providers was put into doubt as a result of an April federal appeals court ruling. The chairman has said he would only apply a limited number of provisions of Title II of the Communications Act to broadband, and not apply more onerous provisions such as price controls.

Ford along with some broadband providers argue that the proposal would stifle innovation and investment in broadband services.

"I get nervous when we start talking about this statute being relevant to the age that we live in," Verizon Senior Vice President of Public Policy Development Kathy Brown, a former chief of staff at the FCC, said.

GOP FCC Commissioner Robert McDowell , who opposes reclassification, said he believes the proposal is aimed at ensuring the commission can enact network neutrality rules, which would bar broadband providers from discriminating against Internet content.

"This is really all about net neutrality," said McDowell, who voted against the FCC's proposal last month to begin collecting comments on Genachowski's reclassification plan.

Official: Securing Critical Infrastructure From Cyber Attacks Impractical

July 8, 2010

An Energy Department intelligence official said Thursday that securing the nation's power grid and other computer systems that operate the nation's critical infrastructure against cyber attack is unrealistic, because companies cannot afford to check if suppliers have provided trustworthy products, Nextgov.com reported.

"If you give me influence or control of your hardware or software supply chain, I control your systems," said Bruce Held, the Energy Department's director of intelligence and counterintelligence. "We're going to have to develop strategies [for managing the supply chain] that are consistent with [the assets] that we're trying to protect."

Systems that pose a national threat if compromised, including military command-and-control systems and networks managing weapons, must be built using equipment from trusted companies. The hardware and software must be checked for security vulnerabilities and possible malicious code that could cause problems, Held said. To vet the products would cost more than what private sector organizations likely can afford, he added.

"Cost considerations are going to make a security strategy impractical" for computer systems that are critically important but owned and operated by the private sector, including those that support the power grid, and the transportation and financial sectors, and other industries that make up the nation's critical infrastructure, Held said.

"We're going to have to think more about protection strategies, with an understanding that there will be residual risk," he said. "We never secured New York City from Soviet nuclear attack [during the Cold War], but we protected it very well. We need to start thinking along those lines." To read more, click here.

Panel Releases USF Data

July 8, 2010

The House Energy and Commerce released FCC data Thursday that shows the biggest recipients of funding from the Universal Service Fund in the last three years include two of the nation's biggest telecommunications firms: AT&T and Verizon.

From 2007-2009, AT&T was the largest recipient of funds from the USF, collecting $1.3 billion and was followed closely in second place by Verizon with $1.27 billion over the same period, the data showed.

The data was released by the committee after the panel's leaders requested the information last month about the top recipients of money from the $8 billion USF, which subsidizes the cost of telecommunications service in high-cost, rural and low-income areas and also provides support for Internet access in schools and libraries.

While telecommunications carriers must contribute to the fund, the cost is passed on to customers in the form a single line-item on their monthly bills.

Energy and Commerce Communications Subcommittee Chairman Rick Boucher, D-Va., has been working on USF legislation since last year. Boucher has called for transitioning the fund to include support for broadband services. Both AT&T and Verizon have voiced support for Boucher's USF overhaul effort.

The Energy and Commerce Committee's Republicans were quick to point to the data in citing the need to reform the fund. Communications Subcommittee ranking member Cliff Stearns, R-Fla., noted that some companies that receive support from the fund are in areas that are served by many telecom providers, a situation that he said calls "into question the size, structure and purpose of the subsidies." For example, the highest average per-line-support in 2009 was provided to Westgate Communications in Washington State, where the company received an average per-line subsidy of $17,763.

Energy and Commerce ranking member Joe Barton, R-Texas, said instead of focusing on regulating broadband providers, the FCC should be working to overhaul the USF, which the commission has proposed as part of its national broadband plan.

"Subscribers now pay close to 14 percent of their long-distance phone bills to subsidize scores of telephone providers in each geographic market while other providers are serving the same markets without a penny of support," Barton said in a statement. "It is inexcusable that the FCC chairman is trying to reclassify broadband service under the pretext that the commission lacks authority to implement aspects of the national broadband plan when he should instead be focusing on bipartisan aspects of the plan that he clearly has authority to move on, such as reducing antiquated voice service subsidies."

HHS Proposes Rules To Enhance Health Information Privacy

July 8, 2010

The Health and Human Services Department Thursday announced proposed rules aimed at enhancing the privacy of health information under the Health Insurance Portability and Accountability Act (HIPPA).

The proposed regulations, issued in a notice of proposed rulemaking, would expand the right of individuals to access their information while restricting disclosure of covered health information, extend the privacy and security requirements included in HIPPA to business associates of companies and organizations covered by the law, and ban the sale of a patient's health data without their consent.

"This rulemaking will strengthen the privacy and security of health information, and is an integral piece of the [Obama] administration's efforts to broaden the use of health information technology in health care today," David Blumenthal, the national health information technology coordinator, and Georgina Verdugo, director of the HHS Office of Civil Rights, said in a statement.

The privacy changes were part of the Health Information Technology for Economic and Clinical Health (HITECH) legislation that was included in the economic stimulus package enacted in February 2009.

Deven McGraw, director of the Center for Democracy and Technology's Health Privacy Project, noted the importance of strong privacy and security protections to the success of health IT.

"The public supports electronic health networks but they also have legitimate concerns about the privacy risks," McGraw said in a statement on the proposed rules. "The promise of health information technology to help reform our health care system will fail if policymakers don't take the public's privacy concerns seriously."

Those wishing to submit comments on the proposed regulations will have 60 days beginning next Wednesday to do so.

Coalition Launched To Oppose NBC-Comcast Merger

July 8, 2010

On the same day that lawmakers were set to meet in Chicago for a field hearing on the issue, 20 public interest, industry and consumer groups Thursday announced a coalition to oppose the proposed merger between Comcast and NBC Universal, citing its potential harm on competition and consumer choice.

The coalition includes groups that have raised concerns about the merger since it was announced in December including Free Press and the Media Access Project, while also including financial news provider Bloomberg, the National Coalition of African American Owned Media, the National Organization for Women and the National Telecommunications Cooperative Association.

The groups sent a letter Thursday to House Energy and Commerce Communications Subcommittee Chairman Rick Boucher, D-Va., whose panel is holding the field hearing in Chicago Thursday on the potential effects of the merger, as well as Energy and Commerce Subcommittee on Commerce, Trade and Consumer Protection Chairman Bobby Rush, D-Ill. Both lawmakers were set to attend the field hearing.

"As the nation's largest cable company, the largest Internet service provider, the NBC broadcast networks, owner of the local NBC and Telemundo stations in some of the nation's largest media markets, owner of dozens of national, regional and local news, entertainment and sports cable networks, and owner or part-owner of some of the most heavily visited Web sites on the Internet, the merged entity will exert a degree of power unknown in our nation's media history," the coalition's letter said.

The coalition added, "That degree of concentrated power is fundamentally threatening to the public interest. Before allowing such a sea-change to take place, these impacts must be fully studied and understood - and the threats must be mitigated through energetic applications of the government's regulatory authority."

In a blog post Wednesday, Comcast Senior Vice President and Public Policy Counsel Joe Waz, who is scheduled to testify at the field hearing, defended the merger by detailing the commitments related to "diversity of programming, ownership, supplier, and workplace opportunities" the company has pledged to make if the merger is approved.

"Through this transaction we have been exploring new opportunities to utilize our resources so that no one is left behind. This transaction is about giving more to our diverse consumers and to the communities we serve - more programming, more career opportunities, more procurement opportunities, and more community outreach," Waz wrote. "Based on our solid record and the voluntary commitments we have offered in connection with the NBCU transaction, we strongly believe the benefits of this transaction are in the public interest."

Bill To Require Porn-Blocking Technology At Agencies

July 8, 2010

The House passed this month an amendment to a supplemental spending bill that would bar federal agencies from using funds for computer networks unless the systems block pornography, Nextgov.com reported.

One information security expert called the requirement wise, but warned Congress should leave it up to agencies to specify the controls they use to prevent federal employees from downloading porn.

On July 1, the House agreed to an amendment to the Senate passed supplemental bill, H.R. 4899, that stated, "None of the funds made available in this act may be used to maintain or establish a computer network unless such network blocks the viewing, downloading and exchanging of pornography."

The fiscal year 2010 bill would provide funds for the wars in Iraq and Afghanistan, humanitarian efforts in Haiti and domestic needs.

During the past several years, federal officials have reported a string of cases in which employees spent hours on government systems surfing the Web for pornography, including incidents at the Interior Department and the Securities and Exchange Commission.

Lawmakers included the anti-porn measure in the bill as a way to stop the behavior, aides said on Wednesday. The House amendment goes back to the Senate for approval of the item and other changes, which include additional money for border security technology, Gulf Coast oil spill recovery and education jobs.

Some of the spending in the bill would be offset by rescinding money appropriated for other programs, including $602 million from last year's economic stimulus plan for broadband grants. To read more, click here.

July
7

Verizon Chief Appointed To President's Export Council

July 7, 2010

Verizon Chairman and CEO Ivan Seidenberg was the lone tech or telecom representative appointed to the export council announced Wednesday by President Obama.

The council "includes business and labor leaders who will offer their unfiltered advice and expertise on how best to promote exports," Obama said in remarks announcing the council.

It also includes such executives as Walt Disney President and CEO Robert Iger, UPS Chairman and CEO Scott Davis, Xerox Chairman and CEO Ursula Burns, the council's vice chairman, and Boeing Chairman, President and CEO Jim McNerney, the council's chairman.

The council was announced as Obama gave a progress report on his National Export Initiative, aimed at doubling U.S. exports over five years. The White House reported a nearly 17 percent boost in U.S. exports in the first four months of 2010 compared with the same period last year.

"Export growth leads to job growth and economic growth," Obama said.

Boucher, Other Lawmakers To Attend Comcast, NBCU Hearing

July 7, 2010

Adding some Beltway heft, three members of the House Energy and Commerce Communications Subcommittee will attend Thursday's field hearing in Chicago focused on the proposed $30 billion merger between Comcast and NBC Universal.

Those committee members set to attend so far include Energy and Commerce Communications Subcommittee Chairman Rick Boucher, D-Va., and Reps. Bobby Rush, D-Ill., and Steve Buyer, R-Ind.

Rep. Maxine Waters, D-Calif., a senior member of the Judiciary Committee, also will attend. Waters participated in the June hearing held in Los Angeles on the merger and expressed concerns about diversity in media.

June's hearing "was about understanding how diversity, programming, management, ownership and consumer prices could be impacted by a merger of this size," Waters said.

Here is the latest witness list for Thursday's hearing:

Samuel R. DeSimone, Jr., general counsel, EarthLink, Inc.

Shirley Franklin, executive senior adviser, Alliance for Digital Equality

Will Griffin, president and CEO, Hip Hop On Demand

Jesse Jackson, founder and president, Rainbow PUSH Coalition, Inc.

Paula Madison, executive vice president and chief diversity officer, NBC Universal

Joseph W. Waz, Jr., senior vice president for external affairs and public policy counsel, Comcast Corporation

EU Closely Examining Antitrust Allegations In Search Services

July 7, 2010

The European Commission's top antitrust official said Wednesday that he is closely examining allegations of anticompetitive behavior related to Internet search services.

In a speech at an e-commerce antitrust conference in London, Joaquin Almunia, the commission's vice president for competition policy, did not specifically name Google, but the Internet search and advertising firm was the subject of antitrust complaints filed in February by three Internet competitors. The complaints were filed with the commission, the European Union's regulatory arm, by the British price comparison site Foundem, a French legal search engine called ejustice.fr, and Microsoft's Ciao from Bing.

In his prepared remarks, Almunia said "My services are currently examining some allegations of anti-competitive conduct in relation to search. The work is at an early stage, but given the importance of search to a competitive online marketplace, I am looking at the allegations very carefully."

Foundem and ejustice.fr claimed that Google's algorithms demoted the two sites in Google's search results.

In his remarks, Almunia voiced concern about the potential implications of the manipulation of search results by a search engine. "If results on a search engine for instance are being manipulated, it may well make a difference on the market if consumers know about it. But is transparency enough? None of these answers are easy," he said.

Google has staunchly denied claims that it manipulates its search results either in favor of its own products or to hamper others. "We are confident that our business operates in the interests of users and partners, as well as in line with European competition law," Google Senior Competition Counsel Julia Holtz said in a February blog post announcing the allegations filed against the company.

In discussing his overall approach to competition policy when it comes to technology and Internet firms, Almunia said he believes the "principles of competition must be maintained in the digital economy with the same intensity that they are imposed in the brick and mortar world."

"Sound and careful regulatory policy must support and complement competition policy in creating the appropriate environment for the digital economy," he added. "Indeed state intervention might be needed to achieve public interest objectives such as universal access to basic services, scientific and artistic creation, regional cohesion or privacy and safety protection."

Still, Almunia conceded that understanding the dynamics of online markets is a "complex task" given their "innovative business models that are constantly evolving."

Public Safety Group Disputes FCC's Claim On Spectrum

July 7, 2010

A coalition of public safety officials from around the country struck back Wednesday against the FCC's claims that its proposal included in the national broadband plan for building a interoperable public safety network will adequately serve the needs of emergency first responders.

The Public Safety Alliance, which includes groups representing police chiefs, fire chiefs, and others, issued its own white paper in response to one released last month by the FCC that argued that the commission's public safety proposals are adequate to meet public safety's needs. The FCC has called for providing public safety officials with 10 megahertz of spectrum and auctioning off another chunk of spectrum known as the D-Block to commercial providers to help pay for building a public safety broadband network. It also calls for giving public safety officials priority access to roam on commercial networks during emergencies.

The alliance and state and local officials say the FCC's plan will not meet the needs of public safety officials, who have called on the FCC to give them the D-block spectrum in addition to the 10 megahertz called for in the broadband plan. The alliance argues that the FCC's white paper "makes far too many assumptions and relies on conjecture to develop its misguided policy framework that will put public safety users at risk."

For example, the alliance said the FCC has "greatly" underestimated the current and future capacity needs of public safety by allocating only 10 megahertz of broadband spectrum for such tasks as mission-critical high-speed data, high-resolution two-way video conferencing, video monitoring and surveillance at an incident, multi-agency IP-based voice communications with push-to-talk services and other high-bandwidth applications.

The alliance's paper also takes issue with the FCC's claim that the 10 megahertz will provide more than enough capacity for day-to-day communications for public safety officials and also faulted the FCC for not seeking "meaningful input" from public safety officials.

"Public safety has repeatedly argued that the additional 10 megahertz of paired spectrum that would be gained through a D-Block allocation is necessary to ensure reliable operation of the public safety broadband network in the long term," according to the paper.

Survey: Majority Of Americans Access Net Wirelessly

July 7, 2010

A new survey released Wednesday finds that nearly 60 percent of Americans now access the Internet using wireless devices such as a mobile phone or a laptop computer with a Wi-Fi connection.

The latest survey from the Pew Research Center's Internet and American Life Project found an 8 point jump, 51 percent to 59 percent, in the use of mobile phones or wireless laptops from an April 2009 survey. The survey found 47 percent of adults use a laptop with a Wi-Fi connection to get online, up from 39 percent in April 2009, while 40 percent, up from 32 percent in last year's survey, said they use their mobile phone for online activities like surfing the Internet and e-mail,

More than three-fourths reported using their mobile phone to take pictures, a 10-point jump from the 66 percent in April 2009. The biggest increases were in the use of mobile phones for recording videos, 34 percent compared with 19 percent in the 2009 survey, and for accessing the Internet, 38 percent compared with 25 percent in 2009.

"The growing functionality of mobile phones makes them ever-more powerful devices for on-the-go communications and computing," Aaron Smith, a research specialist at the center and the report's author, said in a news release.

Blacks and English-speaking Latinos are among the most avid users of mobile phones, according to the survey. It found 87 percent of these minority groups own cell phones compared with 80 percent of whites. The survey also found greater use of mobile applications among blacks and English-speaking Latinos, with 51 percent of English-speaking Latinos and 46 percent of blacks using their mobile phones to access the Internet compared with 33 percent of whites.

While the survey found that young adults, 18-29, are among the heaviest users of mobile phone applications such as text messaging, playing music and accessing the Internet, "utilization of these services is growing fast among 30-49 year olds," the report said.

The Pew poll is based on a phone survey of 2,252 U.S. adults, including 744 interviewed on cell phones, conducted April 29-May 30. The overall survey has a margin of error of 2 percentage points and 3 percentage points for the subsample of cell phone users.

Audit: IRS Contractor Policy Puts Taxpayer Data At Risk

July 7, 2010

The Internal Revenue Service risked disclosing taxpayer information when it failed to identify contractors that had access to financial records and to fix known security weaknesses at facilities where files are stored, Nextgov.com reported.

According to an audit released Tuesday by the Treasury Inspector General for Tax Administration, the IRS did not identify all the vendors that store and process taxpayer data, making it impossible to complete annual security reviews. In addition, at facilities where the IRS did conduct reviews, it failed to check if weaknesses it had identified were corrected.

The IRS provides many contractors with taxpayer data to help it manage the federal tax system. Technology companies also operate information systems that allow users access to the agency's network. Although contractors must comply with the security control requirements the National Institute of Standards and Technology issues for protecting sensitive data, the IRS is responsible for ensuring contractors comply by conducting annual reviews. Currently, all IRS components compile and submit a list of contractors that have access to tax records.

"This process was not effective at identifying all contractors who have been provided IRS taxpayer data," said the inspector general, who noted two cases in which contractors with access to tax records were not among those that were identified as requiring a security review.

Also, in fiscal 2009, the IRS made 1,396 procurement requests that required access to tax data, but due to a heavy workload it failed to review the requests to determine if contractors were provided taxpayer data, which would have required the agency to conduct an annual security review. To read more, click here.

July
6

Reid Takes Down Mock Web Site Of GOP Rival

July 6, 2010

The re-election campaign of Senate Majority Leader Harry Reid, D-Nev., has taken down a Web site it launched showing his Republican competitor's controversial views on many issues after receiving a "cease and desist" letter from her campaign.

Reid's campaign last week created "The Real Sharron Angle" Web site that mirrored Senate GOP nominee Sharron Angle's old Web site and included some of her more controversial stands on issues such as her call to eliminate Social Security and support for storing nuclear waste at Nevada's Yucca Mountain. Angle re-launched her Web site after winning the Republican Senate nomination last month, removing some information that appeared on her original Web site.

"Apparently Angle and her new handlers think that scrubbing her Web site will make voters forget about her long-documented, radical positions," Reid's campaign said after launching therealSharronAngle.com.

In a statement Tuesday, Angle's campaign claimed that Reid was trying to "deceive" Angle supporters into providing personal information to his campaign. "Make no mistake, the Reid campaign was forced to take this site down because they were breaking several laws and trying to deceive the voters," Angle spokesman Jerry Stacy said in a news release.

The cease-and-desist letter claims Reid had misappropriated "copyrighted and proprietary materials and information under the guise of appearing to be the official Website of the Angle campaign."

Administration Seeks Feedback On Nanotech Priorities

July 6, 2010

The Obama administration on Tuesday began soliciting feedback on a new strategy for agencies to help revolutionize industry through the use of nanotechnology, Nextgov.com reported.

The White House Office of Science and Technology Policy issued a request for information from industry, academia and other stakeholders on specific approaches that will be published in a December strategic plan. In the document, officials posed questions based on the last national plan -- developed in 2007 -- about future research priorities, funding, coordination, partnerships, evaluations and policy.

Separately, OSTP expects to host an online dialogue from July 13 through Aug. 15 to gather feedback more informally. A public workshop in Arlington, Va., July 13-14, will offer the same opportunity for those who want to comment in person.

The administration of then President George W. Bush established the National Nanotechnology Initiative in 2001 to align government-wide research and development in support of the emerging discipline, which is anticipated to affect every sector of the economy. Nanotechnology is the practice of controlling matter at the atomic or molecular levels.

Tuesday's solicitation asks what actions are necessary to achieve the 2007 goals, which called for establishing a world-class nanotechnology research and development program, promoting commercial production of new nanomaterials, developing a skilled nanotechnology workforce, and developing an understanding of the health and environmental risks related to nanotechnology. To read more, click here.

Staff Changes At The FCC

July 6, 2010

FCC Chairman Julius Genachowski announced Tuesday that he has tapped Rick Kaplan to be his new chief counsel and senior legal adviser. Kaplan will succeed Bruce Gottlieb, who is leaving the FCC at the end of July.

Kaplan already works for the FCC, serving most recently as chief of staff to Commissioner Mignon Clyburn since she joined the commission last year. Prior to that, he worked as the deputy coordinator of the FCC's digital television task force.

Before joining the FCC, Kaplan was an associate at the Sidley Austin law firm and also worked in the U.S. House of Representatives' Office of the General Counsel.

Genachowski said Kaplan "has a keen intellect, great judgment, deep insight into the challenges and opportunities of the modern communications landscape, and the ability to build consensus among a wide variety of stakeholders."

With Kaplan's move to Genachowski's staff, Angela Kronenberg will succeed him as Clyburn's chief of staff. Kronenberg most recently served as Clyburn's wireline legal adviser, providing advice on wireline, broadband and universal service issues.

Clyburn also announced that Eloise Gore will move from the FCC's Media Bureau, where she has served as associate chief since 2008, to become the commissioner's adviser on media and consumer issues.

Internet Bills Target Taxes, Freedom

July 6, 2010

Before Congress left town last week for its Independence Day break, lawmakers dropped some high profile Internet-related bills targeting taxes and online freedom.

Among the more controversial bills introduced was one offered by Rep. Bill Delahunt, D-Mass., that would address a long-standing concern from state and local officials about the loss of sales tax revenues from Internet sales. As a result of a 1992 Supreme Court ruling, retailers are not required to collect sales taxes from customers in states where they do not have a physical presence. While the ruling applied to catalog sales, it has since been extended to online sales.

Rep. Rick Boucher, D-Va., also introduced legislation last week that addresses online taxes, but his measure would bar states and local jurisdictions from imposing "multiple or discriminatory" taxes on the sale or use of digital goods and services, such as downloaded music or software, to ensure they are not treated differently than the same physical goods. Under the bill, taxes could only be imposed on the retail sale or use of digital goods or services.

Some online retailers have argued that requiring them to collect sales taxes from customers in states where they do not have a physical presence would pose a logistical burden for them, particularly small businesses who would be required to keep track of sales taxes in each state and locality.

"At a time when unemployment rates are high and small businesses across the country are closing shop, we are confident that Congress will protect small Internet retailers and the consumers they serve from another Internet tax scheme," eBay Deputy General Counsel and Vice President of Government Affairs Tod Cohen said in a statement.

Delahunt notes that states have responded to such concerns by creating an interstate compact, known as the Streamlined Sales Tax Project, that requires participating states to establish uniform definitions for taxable goods and services, and maintain a single statewide tax rate for each type of product.

Delahunt noted that while more than two dozen states have signed on to the agreement, it can't go into effect until Congress approves legislation closing the loophole. He said an estimated $18.6 billion in sales tax revenues will go uncollected this year because of the loophole in current law. The National Conference of State Legislatures said this amount will rise to $23 billion by 2012.

Delahunt's bill would provide congressional authority for this interstate compact to take effect. Under the bill, states would not be required to join the compact, but those who choose to participate would have the authority to require online retailers to collect and remit sales taxes to the states where their customers live even if the retailers don't have a physical presence in those states.

NASA Chief's Comment Another Stumble For Muslim Outreach

July 6, 2010

The White House's policy of using science to build better relations with Muslim-majority countries took another hit over the weekend, when U.S.-based websites highlighted a statement by NASA administrator Charles Bolden that President Obama wants NASA to help the people in Muslim-majority countries feel good about their ancestors' technological accomplishments.

"Before I became the NASA administrator, he charged me with three things: One was he wanted me to help re-inspire children to want to get into science and math; he wanted me to expand our international relationships; and third, and perhaps foremost, he wanted me to find a way to reach out to the Muslim world and engage much more with dominantly Muslim nations to help them feel good about their historic contribution to science and math and engineering," Bolden told an interviewer at the Al Jazeera TV channel. The interview was taped mid-June during Bolden's visit to Cairo, where he also spoke to an audience at the American University in Cairo.

The administration's science outreach effort is already stymied because of cultural and religious factors in Muslim-majority countries, a panel of White House appointees said at a June 9 event hosted by the White House's Office of Science and Technology Policy and the D.C.-based National Academies. "In the Muslim world, education is behind standards. I can say that because it's not sensitive for me," said Ahmed Zewail, an Egyptian-born chemist at the California Institute of Technology who won a Nobel Prize in 1999. Zewail told National Journal that it will take deep educational reform to establish "rational thinking" as an alternative to the ideas of Islamist political advocates.

FTC Extends COPPA Deadline

July 6, 2010

The FTC announced it has extended until July 12 the deadline for those who want to submit comments on the commission's review of its rule implementing the 1998 Children's Online Privacy Protection Act. The deadline for comments had originally been set for June 30.

The FTC said that a technical error on the online comment form incorrectly listed the comment period as being open until July 12. "In fairness to anyone who might have relied upon that information, the commission has extended the comment period through July 12," the commission said in a statement Friday.

COPPA, which went into effect in 2000, imposed certain requirements on Web sites directed at children including that they obtain parental consent before collecting personal information from children under the age of 13. The commission is weighing whether it should apply the rule to new technologies such as mobile devices, interactive television and interactive gaming, and other issues.

July
2

Rev. Jesse Jackson to Testify at Comcast-NBCU Hearing in Chicago

July 2, 2010

Rev. Jesse Jackson, president of the Chicago-based Rainbow PUSH Coalition, will be the star witness at Thursday's field hearing in the Windy City before the House Energy and Commerce Communications Subcommittee on the proposed $30 billion union of Comcast and NBC Universal.

The hearing is expected to focus heavily on the transaction's potential impact on media diversity.

Read CongressDaily's recent coverage here of a controversial group that has not been invited: a minority media coalition backed by former FCC Chairman Kevin Martin.

Here's the latest witness list:

Samuel R. DeSimone, Jr., General Counsel, EarthLink, Inc.

Shirley Franklin, Executive Senior Adviser, Alliance for Digital Equality

Will Griffin, President and Chief Executive Officer, Hip Hop On Demand

Reverend Jesse Jackson, Sr., Founder and President, Rainbow PUSH Coalition, Inc.

Paula Madison, Executive Vice President, Chief Diversity Officer, NBC Universal

Joseph W. Waz, Jr., Senior Vice President, External Affairs and Public Policy Counsel, Comcast Corporation

WHEN: 9:00 a.m. CDT on Thursday, July 8

WHERE: Everett Dirksen Federal Building - Room 2525

219 South Dearborn Street

Chicago, Illinois 60604

Broadband Advocate Bemoans Loss of $602 Million in Stimulus Funds

July 2, 2010

The Media Access Project, a public-interest law firm, is urging Congress not to trim $602 million from a $7.2 billion pot of stimulus dollars dedicated to expanding broadband deployment and adoption nationwide.

The money, which represents nearly a tenth of the total broadband fund, came into jeopardy with the House's passage of a military supplemental bill last night. House Appropriations Committee Chairman David Obey introduced an amendment to the bill that rescinds $602 million from the broadband program to help offset the $75 billion supplemental.

Obey also diverted additional funds from other sources -- and has received a lot of pushback, most notably from the White House. In a statement of administration policy, the president threatened to veto the legislation if certain cuts, unrelated to broadband, remained in the final bill. Now it is up to the Senate, which returns from recess July 12, to move the supplemental out of Congress.

"The $602 million to be reallocated represents a negligible portion of U.S. war spending," Andrew Schwartzman, senior vice president and policy director of Media Access Project, said in a statement. "But these funds would cover the cost of a large number of broadband infrastructure and adoption projects spanning multiple states, to benefit thousands of people living and working without adequate access to the Internet."

Feds Announce Latest Round of Broadband Stimulus Projects

July 2, 2010

President Obama announced today $795 million in USDA and Commerce Department grants and loans under the stimulus to bring high-speed Internet service to unserved or underserved areas. The projects (PDF) are expected to create 5,000 jobs up front and spur economic development in some of the nation's hardest-hit communities, according to a White House news release.

Commerce Secretary Locke said late Thursday the grants from his department's National Telecommunications and Information Administration would build the "middle mile" connecting communities to sources of broadband, while Agriculture Secretary Vilsack said the money from USDA's Rural Utilities Service would connect end-users like homes, hospitals and schools to the middle mile.

Some money will also be used for computer centers in libraries, community colleges and other public venues. Critics have questioned whether the money will be spent fast enough to help the economy in the short run. But Vilsack said RUS had expressed a preference for "shovel ready" projects, while an NTIA official said that agency's projects have to be completed within two years.

The Recovery Act included $7.2 billion in grant and loan money to Commerce and USDA. Including today's tranche, the government has spent $2.7 billion in stimulus funds on broadband. The rest of the spending is to be announced by Sept. 30.

Senators Urge Obama to Back Planned Cybersecurity Legislation

July 2, 2010


Seven Senate leaders late Thursday urged President Obama to support planned legislation designed to protect critical information technology systems from attacks. In a letter to Obama, the senators said they plan to produce a comprehensive cybersecurity bill, although they did not specify a timeframe.

"Executive branch leadership is key to the nation's cyber security and we are eager to hear your views on the optimal organizational structure, necessary updates and reforms to legislation and regulations governing communications networks and information systems, and additional authorities needed to facilitate effective government leadership and response to cyber threats and vulnerabilities," they wrote.

The letter was signed by Senate Majority Leader Reid, Commerce Chairman John (Jay) Rockefeller, Homeland Security and Governmental Affairs Chairman Joe Lieberman; Intelligence Chairwoman Dianne Feinstein, Armed Services Chairman Carl Levin, Judiciary Chairman Patrick Leahy and Foreign Relations Chairman John Kerry.

"We believe that there is an urgent need for action to address these vulnerabilities by the administration, by Congress and by the array of entities affected by cyber threats," they wrote.

Read the letter here

July
1

USTR Provides Update On ACTA Talks

July 1, 2010

The Office of the U.S. Trade Representative Thursday released an update on the latest round of negotiations on a trade agreement aimed at curbing counterfeiting and piracy, saying negotiators made progress on building consensus related to enforcement measures in the "digital environment" and other issues.

The ninth round of negotiations on the Anti-Counterfeiting Trade Agreement began on Monday and ended Thursday in Geneva. The next meeting will take place in the United States, though USTR did not give a date.

In addition to work on the Internet section, USTR said the negotiators also made progress on such areas as general obligations, civil enforcement, border measures, criminal enforcement, and international cooperation. USTR also said "discussions on the scope of intellectual property rights covered in ACTA provided an improved understanding of the respective views on that issue."

The statement also tried to debunk some concerns raised about the draft agreement. "While ACTA aims at establishing effective enforcement standards for existing intellectual property rights, it is not intended to include new intellectual property rights or to enlarge or diminish existing intellectual property rights," the statement said.

USTR also said ACTA would be consistent with the World Trade Organization's Trade Related Aspects of Intellectual Property Rights agreement and also would not allow border officials to search traveler's baggage or personal electronic devices for infringing materials.

House Appropriators Seek To Rescind Some Broadband Funds

July 1, 2010

As part of an effort to offset the costs of the fiscal year 2010 defense supplemental spending bill being debated Thursday on the House floor, the House Appropriations Committee proposed taking back $602 million in funds allocated for broadband grants as part of last year's economic stimulus plan, Nextgov.com reported.

That figure represents nearly 9 percent of the $7.2 billion set aside for the grants. Agriculture and Commerce had planned to use the funds to expand broadband access and adoption in communities nationwide, but the House Appropriations Committee said it needed to make $11.7 billion in cuts to offset $75 billion in spending to support the wars in Afghanistan and Iraq. The committee said it rescinded funds from programs and projects that no longer need the funding, or don't need it right away.

House appropriators also chopped $87 million from Army accounts for purchase of Single Channel Ground and Airborne Radio Systems (SINCGARS), which are widely used by infantry units in both backpack and vehicle-mounted versions.

But in their version of the bill, they added $35 million to the Customs and Border Protection budget for improved tactical communications on the Southwest border and three permanent Border Patrol forward operating bases. CBP also received $32 million to purchase two unmanned aerial vehicles for operation on the Southwest border.

The White House issued a "statement of administration policy" on the bill that did not mention the proposal to rescind some broadband funding but cited concerns with two other provisions. It said White House senior advisers have recommended the president veto the measure if the final bill includes the provisions.

Bill Addresses Taxes On Digital Goods, Services

July 1, 2010

Rep. Rick Boucher, D-Va., and House Judiciary ranking member Lamar Smith, R-Texas, have introduced legislation that aims to create a national framework for how digital goods and services should be taxed.

The measure (H.R. 5649), introduced Wednesday, would bar states and local jurisdictions from imposing "multiple or discriminatory" taxes on the sale or use of digital goods and services, such as downloaded music or software, to ensure they are treated the same as physical goods.

It also would stipulate that taxes could only be imposed on the retail sale or use of digital goods or services in order to prevent repeated forms of taxation from being imposed at multiple stages of an online transaction and would only allow the jurisdiction where the customer lives to impose sales taxes on digital goods and services. The measure has been referred to the House Judiciary Committee, of which Boucher also is a senior member.

In a statement, the bill's authors said that at least 25 states have considered imposing new taxes on digital goods and services since the first state tax on digital goods was imposed in 2007.

"The borderless marketplace and complex nature of digital transactions create new problems that must be addressed uniformly and on a national level to avoid double taxation and to ensure the fair and equitable treatment of digital goods and services," Boucher said in the statement. "Unfair, multiple and inconsistent taxation of these digital goods and services will increase costs for U.S. businesses and make them less competitive in the global economy."

State and local officials have resisted efforts by Congress to limit their ability to impose taxes related to Internet sales and services, particularly given the mounting budget deficits facing many states. The Internet Tax Freedom Act currently bars states and local governments from imposing taxes on Internet access.

As a result of a 1992 Supreme Court ruling, retailers are currently exempt from collecting sales taxes from customers in states where they do not have a physical presence. While the ruling applied to catalog sales, it has since been extended to online sales. Some state officials argue that the situation puts brick-and-mortar stores at a competitive disadvantage to online retailers, and they have pushed Congress to fix the disparity.

Groups Call For Changes To COPPA Rule

July 1, 2010

A coalition of child advocates and health, consumer and privacy groups urged the FTC Thursday to update a 1998 law aimed at protecting children's privacy online to include the use of new devices such as mobile phones and gaming devices to get on the Internet.

The Children's Online Privacy Protection Act requires Web sites aimed at children under 13 to obtain parental consent before collecting any personally identifiable information from such children. The law, implemented in 2000, required the FTC to review its rules every five years. The agency opted against making any changes in 2005 but the FTC now said advances in online technologies require a fresh look at the COPPA rule.

"When Congress passed COPPA in 1998, computers provided the only means of accessing Web sites and online services," according to the comments submitted by 17 groups including the American Academy of Pediatrics, the Center for Digital Democracy, Center for Science in the Public Interest, Consumers Union, and the Privacy Rights Clearinghouse. "Today, adults and children have many other ways to access the Internet and online services including mobile phones, gaming consoles, and interactive television."

In addition to extending the COPPA rule to include new technologies, the groups also said the FTC should update the definition of personal information "to reflect the evolving world in which persistent cookies, Internet protocol addresses, geolocation data, and even seemingly anonymous combinations of data such as age, zip code, and gender are collected and used to track individuals and to target personalized market messages to them, a practice known as 'behavioral targeting.'"

The groups also called for the criteria used in the definition of Web sites directed at children to be expanded to include audience demographic data and the types of content included on a site, such as animated or licensed characters. They also urged the FTC to close "loopholes" that they say allow Web sites to contact children multiple times without obtaining parental consent and to investigate whether some marketers are bypassing COPPA's intent.

Boucher Seeks Compromise On FCC Bill

July 1, 2010

From this morning's Earlybird:

• "House Energy and Commerce Communications Subcommittee Chairman Rick Boucher, D-Va., is conducting private meetings with broadband providers and Internet companies with the goal of crafting narrow legislation to clarify" Federal Communications Commission "authority that can pass this year," CongressDailyAM (subscription) reports.

• "A robust technology research bill cleared the House in late May. An industry tax credit won the lower chamber's approval just days later," Politico reports. "But both proposals still remain mired in partisan squabbling in the Senate -- leaving the tech community worried that the upper chamber is now the place their prized proposals go to die."

 

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Juliana Gruenwald

Tech Writer

E-Mail: jgruenwald@nationaljournal.com.


Juliana Gruenwald has been covering tech and telecom issues for more than a decade for National Journal, Interactive Week, BNA and Congressional Quarterly. This is her second stint with National Journal. She was recruited by NJ in 1998 to help launch its first tech policy publication, Technology Daily. She left in 2000 to cover international tech and telecom issues for Ziff Davis Media's Interactive Week magazine. She started her career at United Press International as the wire service's first Helen Thomas Intern. She has a Bachelor of Arts degree from the University of Minnesota. A Minneapolis native, she misses the lakes but not the cold.


Josh Smith

Tech Reporter

E-Mail: joshsmith@nationaljournal.com.


Josh Smith covers technology policy as a staff reporter for National Journal. He previously interned at National Journal Daily, a Senate press office, and the Deseret News in Salt Lake City where he covered the state legislature, courts, and crime. In 2009 he graduated with honors from Southern Utah University after managing an award-winning student newspaper as editor-in-chief. Josh has received state, regional and national awards for his political and policy reporting, including first place in CapitolBeat’s 2009 Best of Statehouse Reporting college competition. A native of drop-dead-gorgeous Utah, Josh lives in Virginia with his wife, Amber.