Good Morning Tech

Good morning! Please e-mail me your tips at This e-mail address is being protected from spambots. You need JavaScript enabled to view it and follow us on Twitter: @HilliconValley.

FCC's net neutrality talks break down, Kerry says legislation unlikely

The Federal Communications Commission cancelled its stakeholder discussions on Thursday, one day after reports that Google and Verizon have reached an agreement that would allow carriers to charge higher fees for providing faster access to some content. Sources familiar with the discussions said stakeholders remained stuck on key issues such as paid prioritization and whether the rules should apply to wireless services. FCC chief of staff Edward Lazarus said the talks had failed to generate a framework for net neutrality rules, but the Commission will keep all options on the table.

Those hoping for a legislative fix were dealt another blow Thursday when Sen. John Kerry (D-Mass.) released a statement declaring it unlikely that Congress would be able to pass net neutrality legislation in the near term. Kerry, a strong supporter of net neutrality, called on FCC chairman Julius Genachowski to use the Commission's regulatory authority to preserve the openness of the Interet.

Any such regulation would likely first require the FCC move forward with its proposal to re-classify broadband as a telecom service. That proposal has drawn resistance from lawmakers, but Genachowski appears to have the votes necessary for the Commission to move forward.

More on reported Google-Verizon deal

Sources told Hillicon Valley that the Google-Verizon deal would not apply to Verizon's wireless networks and would open the door to ISPs charging more for "managed services" which are not considered part of regular broadband Internet access but make use of the same pipe. Both companies declined to comment on the discussions and denied aspects of the story as reported by the New York Times.

Net neutrality advocates fear the two sides will team up to pitch their compromise to lawmakers as a baseline for any public policy regarding the management of Internet traffic. Gigi Sohn, president of Public Knowledge, called the reported deal a "business agreement between two corporate behemoths" and said it was by definition "not net neutrality."

Sohn accused Google of shifting its definition of net neutrality in favor of its corporate interests; the search giant responded that it "has always and will continue to support an open Internet." Google CEO Eric Schmidt said Wednesday that it would be acceptable for carriers to treat certain classes of content such as video or VoIP differently, so long as they don't allow third parties to pay for their content to be prioritized.

Genachowski said Thursday that "Any outcome, any deal that doesn't preserve the freedom and openness of the Internet for consumers and entrepreneurs will be unacceptable." Pressure will now mount on the chairman to take decisive action in the absence of serious legislative negotiations.

IBM and Aetna unveil cloud-based solution for e-health records

IBM and ActiveHealth, a subsidiary of Aetna unveiled a cloud-based program for electronic health records on Thursday that would gather patients' health data from multiple sources and make it easily available to doctors and healthcare providers. The Collaborative Care system also uses recent research, diagnostic test results and complex analytics to allow physicians to compare patients with similar conditions and gauge the effectiveness of treatment. National Coordinator for Health IT David Blumenthal mentioned the new program at a National Press Club event Thursday. The project is IBM's first foray into the lucrative e-healthcare records market; the Recovery Act included more than $19 billion aimed at encouraging their widespread adoption.

Can't-miss news.

Hill notes

Wikileaks carved out of journalist shield bill. Sens. Chuck Schumer (D-N.Y.) and Dianne Feinstein (D-Calif.) are working on a media-shield bill that would exclude the online whistleblower site Wikileaks. Schumer said he is crafting new language for the bill that would ensure the site is not protected from prosecution for publishing classified government information. The bill would protect journalists from being forced to disclose confidential sources.

Sen. Nelson opposes broadband reclassification. Sen. Ben Nelson (D-Neb.) became the fourth Democratic senator on Wednesday to publicly oppose the FCC's plan to reclassify broadband as a telecom service. Nelson expressed concern that unilateral action from the FCC could lead to an uncertain regulatory climate that could stymie broadband development in his home state.

Sen. Menendez jabs Fiorina on jobs. Democratic Senatorial Campaign Committee Chairman Robert Menendez (N.J.) took a swipe at GOP Senate candidate Carly Fiorina on Thursday, reminding reporters of job losses during her tenure as head of Hewlett-Packard. Fiorina presided over HP's merger with Compaq and during her tenure the computer maker shed 32,000 jobs. She is currently engaged in a tight race with incumbent Sen. Barbara Boxer (D-Calif.).

Privacy caucus wants answers on how sites track consumers online. Reps. Edward Markey (D-Mass.) and Joe Barton (R-Texas), the co-chairs of the House Privacy Caucus, sent letters to 15 companies Thursday demanding answers on how the firms collect and use information from visitors to their websites. The letters were a response to reports from the Wall Street Journal detailing the increasing use of online tracking technologies that collect and store personal information about consumers without their knowledge or consent.

Executive notes

Clinton says U.S. will meet with U.A.E. over Blackberry ban. Secretary of State Hillary Clinton announced Thursday that the U.S. will meet with the United Arab Emirates to discuss the country's recent decision to ban some Blackberry services, citing security concerns. The news comes one day after Lebanon joined India, Kuwait, Bahrain, and Saudi Arabia in requesting access to the device's secure servers to monitor messages for national security threats. Clinton said the U.S. is also working with other countries on the issue. Ontario-based Research In Motion has denied it gives any government special access to its servers and claims to be unable to provide any single customer's encryption key.

Said.

"Of course they are shifting their stance. They now have a different definition of net neutrality than the one they’ve been advocating for the past five years."

-Public Knowledge co-founder and president Gigi Sohn on whether Google is backtracking on its commitment to net neutrality.