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A leading technology advisor to President Obama said in a research note for his investment firm today that privacy and net neutrality will be among the biggest telecommunications issues facing the Federal Communications Commission and the administration going forward. Analyst Blair Levin, who was the co-lead of Obama's technology and innovation team along with nominated FCC Chair Julius Genachowski, wrote in a Stifel Nicolaus research note that the economic crisis and change of administration will shift the focus of telecom policy away from traditional phone companies to "Internet/edge" players. Indeed, Google and other Web video and voice companies like Skype have been increasingly active in recent years at the FCC, pushing particularly for net neutrality rules that would prevent carriers from blocking or charging more for certain content that travels over the Web. Levin said in a note that net neutrality will emerge again as an issue in the new administration for wireless networks. On the other hand, there won't likely be a push for new net neutrality rules for cable, DSL, and fiber network carriers at the FCC. "(There is a) consensus emerging that disputes about whether a wireline network management tool is 'reasonable' (or is actually blocking or degrading traffic) to be resolved on a case-by-case basis," Levin wrote in the note with analysts Rebecca Arbogast and David Kaut. It would be a tough climb to impose rules that force wireless carriers to open their networks. Apple and AT&T successfully argued to lawmakers and regulators to keep their exclusive iPhone contract. Skype's petition to the FCC to force carriers to allow any handset or software to operate on any network was shot down by former FCC Chairman Kevin Martin. He said the biggest "sleeper" issue will be privacy. With a major overhaul of healthcare records to the Web, the rise in behavioral advertising and cloud computing, where information is stored in computers strung across many geographies

WASHINGTON -- Few tech policy debates are plumped up with more rhetoric than those concerning Net neutrality and privacy restrictions for advertisers. It should be a noisy year at the Federal Communications Commission. Here at the Cable Show, the annual conference hosted by the National Cable and Telecommunications Association, advisors to the three current commissioners outlined some of the simmering issues that are likely to boil up at the FCC this year, and those two are on the short list. Rick Chessen, acting chief of staff for interim FCC Chairman Michael Copps, said the agency could move toward adding to its Internet policy statement a fifth principle that would explicitly bar ISPs from discriminating against certain traffic on their networks. "The principle would be one of nondiscrimination, but you would recognize the need for reasonable network management," Chessen said. The FCC's broadband principles comprised the policy document that was at the center of last year's action against Comcast, where the agency found that the cable giant had unfairly blocked peer-to-peer traffic on its network without notifying its subscribers it was doing so. The new principle Chessen suggested would seek to clarify the agency's stance against the selective blocking of traffic. Comcast is challenging last year's ruling in a court case where the outcome could broadly shape how Congress proceed with Net neutrality policy. Rosemary Harold, the legal advisor to Republican Commissioner Robert McDowell, said her boss is more cautious than the two Democrats on the matter.

The Supreme Court upheld a U.S. government crackdown on profanity on television, a policy that subjects broadcasters to fines for airing a single expletive blurted out on a live show. In its first ruling on broadcast indecency standards in more than 30 years, the high court handed a victory on Tuesday to the Federal Communications Commission, which adopted the crackdown against the one-time use of profanity on live television when children are likely to be watching. The case stemmed from an FCC decision in 2006 that found News Corp's Fox television network violated decency rules when singer Cher blurted out an expletive during the 2002 Billboard Music Awards broadcast and actress Nicole Richie used two expletives during the 2003 awards. No fines were imposed, but Fox challenged the decision. A U.S. appeals court in New York struck down the new policy as "arbitrary and capricious" and sent the case back to the FCC for a more reasoned explanation of its policy.

Federal regulators slapped hundreds of small telecommunications providers for not abiding by new rules designed to protect consumer phone records, proposing more than $13 million in total fines. The Federal Communications Commission proposed $20,000 fines on more than 650 small phone, pager and wireless providers Tuesday, accusing them of not filing paperwork that certifies they have put protections in place to protect customer phone data. "I have long stressed the importance of protecting the sensitive information that telecommunications carriers collect about their customers," said Michael Copps, the FCC's interim chairman, in a statement. "The broad nature of this enforcement action hopefully will ensure substantial compliance with our [privacy] rules going forward as the Commission continues to make consumer privacy protection a top priority." In April 2007, the FCC tightened privacy requirements on phone companies in response to consumer complaints about data brokers selling phone records they had obtained illegally through "pretexting," or getting information under false circumstances. The agency required telecom companies to increase security of phone records, requiring customers to provide a password before receiving account information over the phone or online. Phone companies are required to notify customers when changes are made to their accounts or if their information has been improperly accessed. Companies are required to file annual certifications that they have complied with those requirements. The FCC said hundreds of small companies didn't provide the information in 2008, although it noted it was the first year the agency had required the paperwork. The agency warned that future noncompliance could face "more severe penalties."

"Barack Obama's consumer-friendly FCC is asking Verizon Wireless to explain why it recently doubled Early Termination Fees for its customers. The company has until Dec. 17 to explain "the rationale" behind the higher fees. The inquiry comes after Sen. Amy Klobuchar (D-Minn) introduced a bill that would curb the penalties customers are required to pay for early cancellation of a wireless contract. On Nov. 15, Verizon raised the early termination fee for "advanced devices" to $350, from $175 earlier. "

Federal Communications Commission Chairman Julius Genachowski will unveil in a speech on Monday new proposals that would force Internet providers to treat the flow of content equally, sources familiar with the speech said on Friday. The concept, referred to as net neutrality, pits open Internet companies like Google Inc against broadband service providers like AT&T Inc, Verizon Communications Inc, and Comcast Corp, which oppose new rules governing network management. Advocates of net neutrality say Internet service providers must be barred from blocking or slowing traffic based on content. Providers say the increasing volume of bandwidth-hogging services like video sharing requires active management of their networks and some argue that net neutrality could stifle innovation. "He is going to announce rulemaking," said one source familiar with his speech about broadband, to be delivered at the Brookings Institution, a public policy think tank. "The commission will have to codify into new regulations the principle of nondiscrimination." The FCC could formally propose the rules aimed at applying to wireless and landline platforms at an open meeting in October.

A U.S. appeals court on Friday denied a bid by the cable industry to overrule privacy rules that make it more difficult for them to share subscribers' personal information with other parties. The U.S. Court of Appeals for the District of Columbia Circuit denied a petition by the National Cable and Telecommunications Association, which argued that federal rules on telecom carriers' use of customer data violated free speech rights under the U.S. Constitution, federal law or both. At issue are rules set by the U.S. Federal Communications Commission that mandate telecommunications carriers must get an "opt-in" before disclosing customers' information to a carrier's joint venture business partner or an independent contractor.