August 2005

BROADBAND DAY AT THE FCC
FCC Reduces Regulation of Wireline Internet Access Service
As Web Providers' Clout Grows, Fears Over Access Take Focus
FCC Adopts Policy Statement on Broadband Internet Access
FCC Requires Certain Broadband and VoIP Providers to Accommodate Wiretaps
FCC Modifies Rules to Provide Greater Access to Spectrum for Rural Provide=
rs
FCC Approves Radio-Spectrum Auction

CABLE
Judiciary Committees May Hold Hearings into Adelphia Deal
Universal Fund Changes Are Coming

QUICKLY -- Children=92s Media Policy Coalition Asks NAB for Clarity; Martin=
=20
Names Chief Engineer & Economist; Small Ops Practicing Art of Retrans=20
'War=92; BellSouth and CWA Reach Settlement; Nielsen in Political Fight; NB=
C=20
Universal Aims to Be Prettiest Feather in G.E.'s Cap; AOL Purchases=20
Wildseed; Why I Don't Trust Readers

ADDITIONAL COVERAGE/REACTION TO FCC DSL ORDER

BROADBAND DAY AT THE FCC

FCC REDUCES REGULATION OF WIRELINE INTERNET ACCESS SERVICE
The FCC voted at its open meeting Friday to reduce regulation of wireline=
=20
Internet access service by reclassifying it as an =93information service,=
=94 in=20
line with the FCC=92s treatment of cable modem service. The US Supreme Cour=
t=20
in June upheld the agency=92s cable modem classification in the Brand X cas=
e,=20
triggering action on the wireline companion piece which had been placed on=
=20
hold during the litigation. DSL is the most common wireline Internet access=
=20
service. The order basically eliminates the requirement that the Bells=20
unbundle the broadband transmission part of their Internet services and=20
offer the transmission component separately as a common carrier service=20
that other carriers can lease. The action eliminated other Computer Inquiry=
=20
requirements as well. The Computer Inquiry requirements, aimed at keeping=
=20
telephone companies from exerting market power, no longer are necessary in=
=20
=93today=92s market of multiple platforms,=94 FCC Chairman Kevin Martin sai=
d at=20
the meeting. The order offers a grace period, however -- facilities-based=
=20
wireline broadband providers must keep offering Internet access=20
transmission service to unaffiliated ISPs for a year. Importantly, wireline=
=20
broadband providers must continue to contribute to the universal service=20
fund (USF) at current levels for 270 days or until new contribution rules=
=20
are devised, whichever comes first. If the Commission doesn't pass new=20
contribution rules in 270 days, the Commission =93will take whatever action=
=20
is necessary=94 including extending the 270-day period or expanding the=20
contribution base.
[SOURCE: Communications Daily, AUTHOR: Edie Herman]
(Not available online)
* This news was not unexpected. There's a good deal of coverage and=20
reaction which you can find at the bottom of this email.

AS WEB PROVIDERS' CLOUT GROWS, FEARS OVER ACCESS TAKE FOCUS
An increasingly heated debate pits phone and cable companies, which offer=
=20
high-speed Internet access to consumers, against tech giants such as=20
Microsoft, Google and Yahoo as well as providers of online content, such as=
=20
Walt Disney. Advocates of so-called net neutrality argue that what's at=20
stake is no less than the future of the World Wide Web. As more and more=20
Americans turn to high-speed connections, or broadband, for their access to=
=20
the Internet, the power of the phone and cable companies that provide this=
=20
access has grown. Technology has evolved allowing the broadband companies=
=20
to block Web sites from their customers. If they start using this power to=
=20
promote their own commercial content offerings and weed out rivals, say=20
critics, the innovative and free-wheeling Web could be crippled. So far,=20
evidence of such tinkering is scarce, and broadband providers -- and many=
=20
regulators -- scoff that the market would never let them censor the Web.=20
But conflicts of interest have arisen in the past when owners of=20
information pipelines have incentives to favor one company over another.=20
Airlines, for instance, built the original computer-reservation services=20
for travel agencies, and programmed them to push flights by the airline=20
that owned the system to the top of agents' screens -- until the government=
=20
intervened in 1984. On Friday, the FCC waded into the debate when it issued=
=20
new rules for data services provided by telephone companies. The new rules=
=20
release phone companies from an obligation to share their high-speed=20
Internet lines, known as DSL, with rival providers of Internet service. The=
=20
move, a victory for Bell companies, puts them on an equal footing with=20
cable-television providers, which offer their own version of high-speed=20
Internet through cable connections. But critics say the unanimous FCC=20
decision strips away some of the rules designed to protect consumers'=20
rights -- including the ability to freely access the Internet. In place of=
=20
a strict policy on free access, the FCC instead on Friday issued a=20
statement saying consumers have a right to freely use legal Internet=20
applications and services.
[SOURCE: Wall Street Journal, AUTHOR: Amy Schatz Amy.Schatz( at )wsj.com and=20
Anne Marie Squeo annemarie.squeo( at )wsj.com]
http://online.wsj.com/article/0,,SB112346142615607167,00.html?mod=3Dtoda...
us_page_one
(requires subscription)

FCC ADOPTS POLICY STATEMENT ON BROADBAND INTERNET ACCESS
The Federal Communications Commission today adopted a policy statement that=
=20
outlines four principles to encourage broadband deployment and preserve and=
=20
promote the open and interconnected nature of public Internet: 1) consumers=
=20
are entitled to access the lawful Internet content of their choice; 2)=20
consumers are entitled to run applications and services of their choice,=20
subject to the needs of law enforcement; 3) consumers are entitled to=20
connect their choice of legal devices that do not harm the network; and 4)=
=20
consumers are entitled to competition among network providers, application=
=20
and service providers, and content providers. Although the Commission did=
=20
not adopt rules in this regard, it will incorporate these principles into=
=20
its ongoing policymaking activities. All of these principles are subject=
=20
to reasonable network management.
[SOURCE: Federal Communications Commission]
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-260435A1.doc
* FCC Warming to Network Neutrality
http://www.multichannel.com/article/CA632773.html?display=3DBreaking+News
(requires subscription)

FCC REQUIRES CERTAIN BROADBAND AND VOIP PROVIDERS TO ACCOMMODATE WIRETAPS
Responding to a petition from the Department of Justice, the Federal Bureau=
=20
of Investigation, and the Drug Enforcement Agency, the Federal=20
Communications Commission determined that providers of certain broadband=20
and interconnected voice over Internet Protocol (VoIP) services must be=20
prepared to accommodate law enforcement wiretaps. The Commission found that=
=20
these services can essentially replace conventional telecommunications=20
services currently subject to wiretap rules, including circuit-switched=20
voice service and dial-up Internet access. As replacements, the new=20
services are covered by the Communications Assistance for Law Enforcement=
=20
Act, or CALEA, which requires the Commission to preserve the ability of law=
=20
enforcement agencies to conduct court-ordered wiretaps in the face of=20
technological change.
The Order is limited to facilities-based broadband Internet access service=
=20
providers and VoIP providers that offer services permitting users to=20
receive calls from, and place calls to, the public switched telephone=20
network. These VoIP providers are called interconnected VoIP providers.
[SOURCE: Federal Communications Commission]
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-260434A1.doc
* FCC Issues Rule Allowing FBI to Dictate Wiretap-Friendly Design for=20
Internet Services
http://www.eff.org/news/archives/2005_08.php#003876
* FCC schizo on DSL, wiretapping
http://news.com.com/FCC+schizo+on+DSL%2C+wiretapping/2010-1071_3-5821077...
ml?tag=3Dnefd.ac

FCC MODIFIES ADVANCED WIRELESS SERVICES RULES TO PROVIDE GREATER=20
FLEXIBILITY AND ACCESS TO SPECTRUM FROM SMALL RURAL PROVIDERS
In an Order on Reconsideration adopted Friday, the Federal Communications=
=20
Commission (FCC) advanced its efforts to make spectrum available for an=20
array of innovative wireless services and technologies, including voice,=20
data, video, and other wireless broadband services offered over Third=20
Generation ("3G") mobile networks. The Order modifies the band plan, and=
=20
licensing and service rules -- originally adopted in October 2003 -- for=20
the 90 MHz of Advanced Wireless Service (AWS) spectrum at 1710-1755 MHz and=
=20
2110-2155 MHz. The modifications respond to Petitions for Reconsideration=
=20
filed by five parties in response to the original AWS service rules. The=20
changes made in the Order enhance flexibility for potential AWS licensees=
=20
and provide additional opportunities for smaller and rural wireless=20
carriers to access this spectrum. The original band plan for this spectrum=
=20
adopted by the FCC in October 2003 included a mixture of license sizes and=
=20
geographic areas in order to accommodate the needs of wireless providers of=
=20
various sizes serving a range of different geographic areas. Today's Order=
=20
maintains such a mixture but increases the amount of spectrum licensed on a=
=20
small geographic area basis (Cellular Market Areas, or CMAs) from 10 MHz to=
=20
20 MHz in order to provide greater opportunities for smaller rural or=20
regional providers to obtain access to this spectrum at auction. The Order=
=20
also provides for an additional 10 MHz of spectrum licensed by Economic=20
Areas (EAs).
[SOURCE: Federal Communications Commission]
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-260432A1.doc
* Statement by Assistant Commerce Secretary Michael D. Gallagher on the=20
FCC's Adoption of Advanced Wireless Services Rules
"The FCC deserves credit for its prompt responsiveness to the timetable=20
that will lead to spectrum auctions as early as June, 2006. The transfer=
=20
of substantial quantities of extremely valuable spectrum from federal=20
government to commercial use, and the timely relocation of incumbents, will=
=20
speed the availability of advanced wireless services and commercial=20
deployment of innovative technologies."
http://www.ntia.doc.gov/ntiahome/press/2005/gallagher_aws_08052005.html

FCC APPROVES RADIO-SPECTRUM AUCTION
The Federal Communications Commission last week formally approved an=20
auction of a large swath of the radio spectrum crucial to cell phone and=20
other wireless services. There was little doubt the FCC would approve the=
=20
auction. But the FCC had been facing pressure to rejigger the auction rules=
=20
to allow participation of all types of cell phone operators, including=20
rural operators. The rules for the auction do just that, according to FCC=
=20
Chairman Kevin Martin. The radio spectrum to be auctioned is able to=20
support advanced wireless data services, and as a result could be used to=
=20
deliver high-speed Internet service into rural areas and densely packed=20
cities that still lack broadband access. Carriers that win the right to=20
license the airwaves also will use them to augment their voice services.=20
The auction could fetch an estimated $15 billion. A percentage of the=20
proceeds would be used to relocate government agencies, such as the=20
Department of Defense, that currently use the spectrum in their daily=20
operations, according to Media Global Advisors.
[SOURCE: C-Net|News.com, AUTHOR: Ben Charny]
http://news.com.com/FCC+approves+radio-spectrum+auction/2100-1039_3-5820...
.html?tag=3Dnefd.top

CABLE

JUDICIARY COMMITTEES MAY HOLD HEARINGS INTO ADELPHIA DEAL
The House and Senate Judiciary Committees may hold hearings into the=20
Comcast-Time Warner $17.6 billion purchase of Adelphia cable systems after=
=20
the August recess, although nothing has been scheduled yet. There's=20
significant concern about the proposed carve-up of Adelphia, which will add=
=20
2.2 million subscribers for Comcast and 3 million for Time Warner. About=20
19,000 comments have been filed with the FCC expressing concern about the=
=20
merger arising from e-mail campaigns led by Free Press and the=20
Communications Workers of America, which oppose the transaction. But other=
=20
industry sectors have concerns, too. The National Association of=20
Broadcasters said the proposed transactions present =93clear competitive=20
concerns=94 especially for broadcasters. The FCC should impose conditions o=
n=20
the transaction to prevent =93competitive abuses=94 to ensure that local=20
broadcast stations can negotiate with Comcast and Time Warner for=20
retransmission consent and carriage of digital signals, including multicast=
=20
programming streams. Satellite TV operators share NAB=92s concern about=20
placing conditions on the deal to prevent anti-competitive practices.=20
Municipalities worry that Comcast and Time Warner=92s strategy of building=
=20
clusters of cable customers could impeded competition for local programming=
=20
including sports.
[SOURCE: Communications Daily, AUTHOR: Anne Veigle, Jonathan Make]
(Not available online)
See also:
* NAB's Response to Comments and Petitions to Deny in the Adelphia/Time=20
Warner/Comcast Merger
http://www.nab.org/newsroom/pressrel/filings/AdelphiaMergerReplyComments...
5.pdf
* FTC Assures Sensenbrenner on Adelphia Merger
House Judiciary Committee chairman James Sensenbrenner (R-WI) has won=20
assurance that the Federal Trade Commission will closely examine the=20
takeover of Adelphia Communications by Comcast and Time Warner, especially=
=20
with regard to the ability of independent programmers to gain cable=20
carriage. In May, Sensenbrenner sent a letter to FTC chairman Deborah Platt=
=20
Majoras expressing his concern about the Adelphia merger=92s impact on=20
cable-ownership concentration and program diversity.
[SOURCE: Multichannel News, AUTHOR: Ted Hearn]
http://www.multichannel.com/article/CA632819.html?display=3DBreaking+News
(requires subscription)

UNIVERSAL FUND CHANGES ARE COMING
The cable industry could soon find itself paying into the Universal Service=
=20
Fund, a system takes a portion of money collected from interstate=20
telecommunications (primarily long-distance revenues) and redistributes it=
=20
to help ensure customers in low-income, rural, insular and high-cost areas=
=20
have telephone access. The universal service system also aspires to provide=
=20
greater access to advanced services. But in recent years, a perfect storm=
=20
has developed. Long-distance rates have plummeted as fewer people make=20
long-distance calls in favor of e-mail and flat-rate plans via=20
voice-over-Internet protocol services. Other than cable companies, many of=
=20
those VoIP outlets don't pay into the USF. Worried that VoIP could get=20
caught up in a regulatory maelstrom, cable has advocated legislation that=
=20
would reform the entire universal-service system. To achieve that, the=20
industry wants Congress to restructure the current revenue-based regime=20
into a system based on phone numbers. That way, any customer who has a=20
phone number -- whether associated with VoIP or traditional=20
circuit-switched telephony -- would pay a monthly fee into the USF.
[SOURCE: Multichannel News, AUTHOR: Michael Grebb]
http://www.multichannel.com/article/CA632676.html?display=3DTop+Stories
(requires subscription)

QUICKLY

CHILDREN'S MEDIA POLICY COALITION ASKS NAB FOR CLARITY
The FCC has new rules covering ads during children=92s programming includin=
g=20
commercial matter, air time sold for the purposes of selling a product or=
=20
service and promotions of TV programs or video programming services. Some=
=20
broadcasters are (mis)interpreting the rules to include Public Service=20
Announcements aimed at kids. Why? Well, the Children=92s Media Policy=20
Coalition would like to know and has asked the National Association of=20
Broadcasters to endorse the Ad Council=92s belief that their PSAs and Web=
=20
sites don't pose any conflict with the FCC's proposed rule. The coalition=
=20
believes the Ad Council=92s concerns can be resolved and clarified quickly=
=20
through NAB, without federal intervention. The coalition doesn't understand=
=20
how =93a reasonable, good faith interpretation=94 of the language can be=20
construed to encompass children=92s PSAs. =93While the coalition appreciate=
s=20
the television industry=92s need for accurate interpretation of FCC rules, =
it=20
is discouraging that this needless and unfounded inquiry distracts us all=
=20
from improving the media environment for children,=94 the coalition said.
[SOURCE: Communications Daily]
(Not available online)

CHAIRMAN MARTIN ANNOUNCES THE ACTING CHIEF OF THE OFFICE OF ENGINEERING AND=
=20
TECHNOLOGY AND THE CHIEF ECONOMIST
Federal Communications Commission Chairman Kevin J. Martin named Bruce=20
Franca as Acting Chief of the Office of Engineering and Technology and=20
Leslie Marx as Chief Economist. Bruce Franca has served as Deputy Chief of=
=20
the Office of Engineering and Technology since 1987. Mr. Franca joined=20
the Commission in 1974 as an engineer in the Aviation and Marine Division=
=20
of the former Safety and Special Radio Services Bureau. He has also held=
=20
positions in the Office of Plans and Policy and the Mass Media=20
Bureau. Before joining the Commission, Mr. Franca worked for the Naval=20
Ship Research and Development Center in Annapolis, Maryland; the Naval=20
Electronics Laboratory Center in San Diego, California; and the Naval=20
Applied Science Laboratory in Brooklyn, New York. He is a graduate of=20
Pratt Institute in Brooklyn, New York, and has done graduate work in=20
electrical engineering at the George Washington University. Leslie Marx=20
joins the Commission under an Intergovernmental Personnel Act assignment=20
from Duke University, where she serves as an Associate Professor of=20
Economics at the Fuqua School of Business. Prior to joining Duke=20
University, she was a professor at the Simon School of Business at the=20
University of Rochester. Ms. Marx graduated as valedictorian from Duke=20
University and received her PhD in Economics from Northwestern University.
[SOURCE: Federal Communications Commission]
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-260439A1.doc

SMALL OPS PRACTISE ART OF RETRANS 'WAR'
Small cable operators assembled last week for basic training in the art of=
=20
waging war against a potential enemy =97 the nation=92s broadcasters =97 an=
d in=20
outmaneuvering a savvy competitor, direct-broadcast satellite. Military=20
metaphors abounded at the joint annual meetings of the American Cable=20
Association, a lobbying group, and the National Cable Television=20
Cooperative, a buying co-op. Both organizations serve small independent=20
operators. Looming retransmission-consent negotiations were the topic du=20
jour at both the NCTC=92s three-day =93Hooked on Cable=94 confab and the AC=
A=92s=20
half-day session, and that=92s when the lingo about doing battle against=20
TV-station owners turned up.
[SOURCE: Multichannel News, AUTHOR: Linda Moss]
http://www.multichannel.com/article/CA632850.html
(requires subscription)

BELLSOUTH AND COMMUNICATIONS WORKERS OF AMERICA REACH SETTLEMENT
BellSouth Corporation and the Communications Workers of America (CWA) have=
=20
reached a five-year tentative agreement covering approximately 500=20
employees of BellSouth Internet Services. The previous contract was set to=
=20
expire at midnight on Aug. 6, 2005. "We are pleased that once again the=20
company and CWA have been able to work together successfully to find=20
solutions to the complex issues facing our business," said Dick Sibbernsen,=
=20
vice president of Human Resources for BellSouth. "This agreement allows=20
BellSouth to effectively compete in the marketplace and continue to provide=
=20
customers with high-quality products and services." "This agreement is a=20
very important one for our members," said CWA District 3 Vice President=20
Noah Savant. "It achieves our members' key goals of obtaining comparable=20
wage increases with other employees and maintaining health care coverage.=
=20
The committee also was able to negotiate work rule changes that will be=20
very beneficial to our members of the life of the contract," he said.
[SOURCE: Communications Workers of America]
http://www.cwa-union.org/news/PressReleaseDisplay.asp?ID=3D515

NIELSEN, LONG A GAUGE OF POPULARITY, FIGHTS TO PRESERVE ITS OWN
Since the early spring of 2004, Nielsen has spent more than $4 million to=
=20
hire some of the nation's premier lobbyists to counter a savvy campaign=20
conducted by Rupert Murdoch's News Corporation, a team of longtime Clinton=
=20
strategists hired by the media conglomerate, and a coalition of black and=
=20
Hispanic community leaders. Before 2004, Nielsen had not spent a dime on=20
lobbying. Nielsen has also sprinkled more than $200,000 among minority=20
organizations like the National Urban League, the National Council of La=20
Raza, the Rainbow/PUSH Coalition and the Dragon Boat Festival in San=20
Francisco, according to Nielsen officials. The lobbying and outreach=20
efforts represent a remarkable departure for Nielsen, a company not=20
particularly known for its responsiveness to complaints and which prefers=
=20
to settle disagreements with television network and advertising clients in=
=20
private. But Nielsen executives say they had no choice. "It's pretty rare=
=20
for a business issue to turn into a long-term political attack by one of=20
your clients," said Susan D. Whiting, president and chief executive of Niel=
sen.
[SOURCE: New York Times, AUTHOR: Lorne Manly & Raymond Hernandez]
http://www.nytimes.com/2005/08/08/business/media/08nielsen.html
(requires registration)

NBC UNIVERSAL AIMS TO BE PRETTIEST FEATHER IN GE'S CAP
NBC Universal is focused on dual tracks. One is to continue to own or=20
create original content, from its new Sunday night broadcast deal with the=
=20
National Football League on NBC; network TV stalwarts like the "Law &=20
Order" franchise, the "Today" show and "The Tonight Show with Jay Leno";=20
programs like "Monk" and "Battlestar Galactica" that are shown on its USA=
=20
Network and Sci-Fi Channel cable outlets; and upcoming Universal movies=20
such as "King Kong" and "The Producers." The other track is to figure out=
=20
ways to capitalize on emerging digital business models around the globe for=
=20
everything from the broadband Internet to mobile phones by mining the=20
companies' libraries of programming and movies, and even by producing=20
original content for these platforms. NBC Universal is churning out cash,=
=20
having contributed $979 million to G.E.'s operating profits - 15 percent of=
=20
G.E.'s total - in the quarter that ended June 30, compared with $768=20
million a year earlier. Sales were $3.86 billion in the most recent period,=
=20
compared with $2.86 billion in the year-earlier period; the increase=20
largely reflects the combination of the two companies last May. Over all,=
=20
John Inch, a Merrill Lynch analyst, forecasts that NBC Universal will=20
generate operating profit of $3.33 billion on revenues of $14.9 billion in=
=20
2005, growing to $3.91 billion on revenues of $16.7 billion next year. Out=
=20
of all the businesses in the G.E. portfolio - from medical equipment to=20
financial services to light bulbs -- Mr. Inch expects NBC Universal to=20
deliver the highest operating profit margins this year and next, rising to=
=20
about 24 percent in 2006.
[SOURCE: New York Times, AUTHOR: Richard Siklos & Laura Holson]
http://www.nytimes.com/2005/08/08/business/08universal.html
(requires registration)

AOL PURCHASES WIRELESS COMPANY WILDSEED
America Online, the world's largest Internet provider, has purchased a=20
privately held wireless technology company as part of its initiative to=20
more quickly get AOL service onto phones and other wireless devices, the=20
company plans to announce today.
[SOURCE: Reuters]
http://today.reuters.com/news/newsArticle.aspx?type=3DinternetNews&storyID=
=3D2005-08-08T083838Z_01_N05610675_RTRIDST_0_NET-MEDIA-AOL-WIRELESS-DC.XML

WHY I DON'T TRUST READERS
[Commentary] he mainstream American press is better than it's ever been. If=
=20
you don't believe me, visit your local library and roll through a couple of=
=20
miles of microfilm of the papers you're currently familiar with. By any=20
comparison, today's press is more accurate, ethical, reliable, independent,=
=20
transparent, and trustworthy than ever. Skepticism is a healthy disposition=
=20
in life. I wouldn't be a press critic if I regarded the press as=20
hunky-dory. But mindless skepticism is mainly an excuse for ignorance. Even=
=20
the people who denounce the New York Times as the bible of liberals=20
ultimately get most of their useful news from it. I've had it with all you=
=20
unreliable, inconsistent, and detestable blockheads. I've given you every=
=20
possible chance and you've failed me miserably. Tonight I'm ordering a=20
custom bumper-sticker that reads, "I Don't Trust the Mainstream Media=20
Audience."
[SOURCE: Slate, AUTHOR: Jack Shafer]
http://slate.msn.com/id/2124083/

ADDITIONAL COVERAGE/REACTION TO FCC DSL ORDER

* FCC Press Release
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-260433A1.doc

* Chairman Martin: "The Order that we adopt today is a momentous one. It=
=20
ends the regulatory inequities that currently exist between cable and=20
telephone companies in their provision of broadband Internet services. As=
=20
I have said on numerous occasions, leveling the playing field between these=
=20
providers has been one of my highest priorities. With this Order, wireline=
=20
broadband Internet access providers, like cable modem service providers,=20
will be considered information service providers and will no longer be=20
compelled by regulation to unbundle and separately tariff the underlying=20
transmission component of their Internet access service. Most importantly,=
=20
however, the actions we take in this Order are an explicit recognition that=
=20
the telecommunications marketplace that exists today is vastly different=20
from the one governed by regulators over 30 years ago. The Computer=20
Inquiry requirements that were adopted several decades ago were based on=20
the assumption that, without the imposition of strict regulation, telephone=
=20
companies would be able to exert considerable market power over=20
unaffiliated entities in the provision of information services. To the=20
extent that this assumption was true at the time, it is no longer true in=
=20
today's broadband market. As the item recognizes, the broadband Internet=20
access market today is characterized by multiple platforms that are=20
vigorously competing for customers."
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-260433A2.doc

* Commissioner Abernathy: "And let there be no doubt: competition among=20
broadband providers is flourishing. The Commission's most recent=20
statistics show that over 80% of zip codes in America are served by two or=
=20
more high-speed providers, about two-thirds are served by three or more,=20
and over half are served by four or more. Moreover, I fully expect that=20
providers taking advantage of new platforms will soon offer consumers even=
=20
more choices in even more areas. Over 1.2 million high-speed lines in=20
service today use wireless, satellite, fiber-optic, and powerline=20
technologies; that number is poised to rise dramatically in the very near=
=20
future. The result of such competition will be better and better services=
=20
at lower and lower prices, with offerings designed to match customers'=20
needs rather than regulators' preferences."
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-260433A3.doc

* Commissioner Copps: "The handwriting is on the wall. DSL *will* be=20
reclassified, either now or soon from now, whether I agree or not. This is=
=20
not a situation of my making or my preference, and I believe that it does=
=20
not inure to the benefit of this institution or to consumers across the=20
land. But when fundamental responsibilities like homeland security,=20
universal service, disabilities access, enterprise competition, and=20
Internet discrimination protections are on the chopping block, I feel=20
compelled to work hard and be creative to advance the public interest=20
rather than throwing up my hands. I therefore will concur in this=20
proceeding to protect our ability to meet these core responsibilities. As=
=20
we enter the world of Title I today, we all know what the FCC's goals must=
=20
be. Among other things, we must continue to protect homeland security. We=
=20
must meet our universal service responsibilities. We must maintain=20
disabilities access. We must protect fledgling competition. And we must=
=20
state clearly that innovators, technology companies, and consumers will not=
=20
face unfair discrimination on the Internet by network providers."
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-260433A4.doc

* Commissioner Adelstein: "Were the pen solely in my hand, this is not the=
=20
Order I would have drafted or the procedural framework I would have=20
chosen. This Order, however, reflects meaningful compromise by each of my=
=20
colleagues, and I appreciate the efforts to address many of my concerns=20
about issues including the stability of the universal service fund, access=
=20
for persons with disabilities, and the ability of competitive carriers to=
=20
access essential input facilities. In the wake of the Supreme Court=20
decision, this reclassification was inevitable. What we've done here is=20
ensure it was done in a fashion that protects, or holds the promise of=20
addressing, many critical policy goals that Congress and the Commission=20
have long held as fundamental to a "rapid, efficient, Nation-wide, and=20
world-wide wire and radio communication service.""
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-260433A5.doc

* Statement by Assistant Commerce Secretary Michael D. Gallagher on the=20
FCC's Adoption of Wireline Broadband Internet Access Order:
"Today's FCC action demonstrates Chairman Martin's leadership and=20
represents an important step towards realizing the President's goal of=20
universal, affordable access to broadband for all Americans by creating a=
=20
level playing field for providers of broadband access and by removing=20
regulatory obstacles to further investment in broadband infrastructure. I=
=20
congratulate Chairman Martin and his fellow Commissioners for their=20
foresight and their willingness to work in a bipartisan fashion."
http://www.ntia.doc.gov/ntiahome/press/2005/gallagher_08052005.htm

* FCC eases regulations on DSL broadband
http://today.reuters.com/news/newsArticle.aspx?type=3DpoliticsNews&storyID=
=3D2005-08-05T193428Z_01_N05212849_RTRIDST_0_POLITICS-TELECOMS-FCC-DSL-DC.X=
ML

* FCC Eases High-Speed Internet Rules
http://www.njtelecomupdate.com/lenya/telco/live/tb-UYOF1123186104210.html

* Telcos Get Brand X Status
http://www.broadcastingcable.com/article/CA632609?display=3DBreaking+New...
eferral=3DSUPP
(free access for Benton's Headlines subscribers)

* FCC Liberates Bells=92 DSL
http://www.multichannel.com/article/CA632608.html?display=3DBreaking+News
(requires subscription)

* FCC Liberates DSL in Parity Bid
http://www.multichannel.com/article/CA632849.html?display=3DTop+Stories
(requires subscription)

* FCC schizo on DSL, wiretapping
http://news.com.com/FCC+schizo+on+DSL%2C+wiretapping/2010-1071_3-5821077...
ml?tag=3Dnefd.ac

* DSL Item Released =97 coulda been worse
[Commentary] On the plus side, the FCC did the following: 1) A clear=20
statement that the FCC has authority to take necessary action to remedy any=
=20
problems under their =93Title I ancillary jurisdiction.=94 (For those curio=
us,=20
Title I of the Communications Act is the general authority of the FCC to=20
act over all wireline and wireless communications. The DC Circuit Court has=
=20
been aggressively whittling this away to nothing in recent years, sometimes=
=20
for good things (eliminating broadcast flag) and sometimes for bad things=
=20
(eliminating the FCC requirement for narrative description for the blind).=
=20
2) A policy statement that the FCC does not want to see network providers=
=20
using their control of networks to interfere with access to content or=20
competing services (like voice over IP) and that the FCC reserves the right=
=20
to address situations if they arise. 3) Preserve existing CALEA=20
obligations. (CALEA is the statute that says you have to give law=20
enforcement the ability to tap your network if it is a communications=20
network.) 4) Preserve disabilities access (telecom services have=20
disabilities access requirements, unregulated information services don't.=
=20
This preserves existing requirements for disabilities access.) 5) Preserve=
=20
universal service contribution for the next 9 months, during which the FCC=
=20
will consider how reclassification will impact DSL and create new rules to=
=20
maintain or even expand the current levels of DSL funding. (Telecom=20
services contribute to universal service fund -- a fund that subsidizes=20
broadband connections to schools, libraries and rural areas. Once mocked by=
=20
the Republicans as the =93Gore Tax=94 for Al Gore's insistence that it go i=
n=20
the Telecom Act of 1996, now cherished by such Republicans as Senator=20
Stevens because it gives money to rural states. DSL reclassification could=
=20
have eliminated millions of dollars from the fund.)
The FCC also will release a new Notice of Proposed Rulemaking asking what,=
=20
if any, rules should apply to DSL now as an information service. Bottom=20
line- I think independent ISPs are going to end up eaten by the dinosaurs,=
=20
rather than the other way around. OTOH, it looks like Amazon, Google and=20
even Wetmachine will be safe from being blocked or forced to pay fees for=
=20
=93preferred transport=94 over the DSL and cable lines.
Unanswered questions -- what will happen to the wholesale peering and=20
connectivity markets? Will wireless ISPs, community wireless networks, and=
=20
munie systems still get interconnection and affordable backhaul? Or will=20
they become mere intranets, unable to connect out to the broader world? The=
=20
statutory interconnection requirement for telecom services is gone, and the=
=20
backbone market is consolidating. Will the Commission protect=20
interconnectivity as well as access to content?
[SOURCE: Tales of the Sausage Factory, AUTHOR: Harold Feld]
http://www.wetmachine.com/totsf/item/333

* FCC Eliminates Competition on DSL Lines
"Today=92s FCC decision that telephone companies no longer must share acces=
s=20
to their broadband DSL lines with competing Internet Service Providers is=
=20
not good for creative artists and the American public, but it could have=20
been far, far worse. Following the Supreme Court=92s decision in the Brand =
X=20
case upholding the FCC=92s earlier elimination of competition from cable=20
broadband service, as Commissioner Copps correctly notes in his Concurring=
=20
Statement, =93the handwriting is on the wall.=94 There was no doubt that th=
e=20
Commission would extend the same ill-considered regulatory treatment to the=
=20
telephone companies=92 competing DSL broadband service. Now, thanks to the=
=20
Commission, cable and telephone companies will both have the power to stop=
=20
other Internet Service Providers (ISPs) from offering competing service on=
=20
their broadband networks. According to the FCC=92s July 2005 report on High=
=20
Speed Internet Access, in December 2004 approximately 94 percent of=20
Americans subscribing to high speed Internet access received it from either=
=20
a cable or a telephone company. Given that tremendous market share, today=
=92s=20
FCC action eliminating competing ISPs will give cable and telephone=20
companies even greater opportunities to provide the poor quality service at=
=20
an inflated price for which they are so well known. To compensate for=20
eliminating ISP competition on these companies=92 broadband lines, the=20
Commission should immediately fast-track additional ways for Americans to=
=20
receive high speed Internet access other than via cable and telco,=20
including freeing up additional spectrum for new wireless broadband=20
competition." More at URL below...
http://www.creativevoices.us/php-bin/news/showArticle.php?id=3D133&PHPSE...
D=3D18704f52590a75f95256ad0bf11c1328

* CU, CFA Respond to FCC Order Restricting DSL Access to Competitors
Consumers Union (CU) and the Consumer Federation of America (CFA) warned=20
that today=92s Federal Communications Commission (FCC) order restricting=20
access of competitors to digital subscriber lines (DSL) will force existing=
=20
independent broadband providers out of the market and drive up the price of=
=20
high-speed Internet for consumers. "The Federal Communications Commission=
=20
continues down the wrong path on deregulation, allowing giant phone=20
companies to tighten their stranglehold on competition, stifle innovation,=
=20
and reach even deeper into the pockets of consumers," said Gene Kimmelman,=
=20
Public Policy Director at CU. "Consumers will be forced to pay higher=20
prices for Internet access." "Open access requirements for Bell-owned DSL=
=20
lines are responsible for some of the only true competition that exists in=
=20
the residential high-speed Internet market today," said Mark Cooper,=20
Research Director at CFA. "Unfortunately, the FCC has eliminated these=20
requirements and virtually guaranteed those consumers lucky enough to have=
=20
both cable and DSL options will have to buy a package of high-priced=20
services they may not want just to get high-speed Internet." Despite=20
disagreeing with the FCC=92s approach to DSL lines, the consumer groups=20
applauded the FCC=92s adoption of principles providing guidance that cable=
=20
and telephone companies should allow their subscribers to use the Internet=
=20
as they wish. But, the groups cautioned the policy did not include=20
enforcement measures. More at the URL below...
http://www.hearusnow.org/other/newsroom/fccorderrestrictingdslaccesstoco...
titors/

* FCC Shares Spoils of Brand X Victory with the Baby Bells
"The "good news" from today's broadband ruling by the FCC is that the=20
"playing field" for high-speed Internet service (after a one-year=20
transition) will be perfectly level. The bad news is that in most=20
communities, only two teams will be left standing to compete on that=20
playing field."
http://www.democraticmedia.org/news/FCCDSL.html

* MAP Issues Statement Regarding FCC's Decision to Redefine Wireline Broadb=
and
"This is bad news for the people who use the Internet. It means higher=20
prices, less competition and disincentives for those entrepreneurs who have=
=20
used the Internet as a platform for innovation and economic growth. Even=20
so, it could have been worse. By asserting its authority to stop the most=
=20
flagrant kinds of abuse, the FCC has made it somewhat harder to block or=20
impede access to information."
http://www.mediaaccess.org/

* Public Knowledge Disappointed by FCC's Removal of Open Network=20
Requirements for DSL Providers
=93Public Knowledge is disappointed that the Federal Communications=20
Commission did not take all the necessary steps to ensure that broadband=20
networks remain open as service providers continue to be deregulated,=94 PK=
=20
Legal Director Mike Godwin said. =93We respect the leadership of Commission=
er=20
Copps and others in attempting to promote the principle of open networks in=
=20
the Commission=92s policy statement today, but we also believe consumers an=
d=20
the market would have benefited if the FCC had included an openness=20
requirement in the order itself,=94 Godwin said. Public Knowledge has=20
developed =93Principles of an Open Broadband Future=94 which highlights a=
=20
fundamental point that communications networks should be open and=20
accessible to consumers, application developers, and information service=20
providers and to other networks, without restrictions or degradation,=20
except to the extent required for law-enforcement or for network-management=
=20
purposes. You can find Public Knowledge=92s Principles for an Open Broadban=
d=20
Future here:=20
http://www.publicknowledge.org/content/papers/open-broadband-future More at=
=20
the URL below...
http://www.publicknowledge.org/pressroom/pressrelease.2005-08-05.4588805092

* BellSouth Comments on FCC Efforts to Spur High Speed Internet Access for=
=20
All Consumers
"Chairman Martin should be widely applauded for pushing to completion these=
=20
sweeping changes that will allow BellSouth to move higher-speed products=20
and services from the lab to the hands of American consumers in the very=20
near future. The chairman's leadership has led to an order that is=20
comprehensive and will result in greater innovation that will benefit every=
=20
broadband consumer. It must be noted that this consensus was developed with=
=20
commendable speed, a speed that is appropriate and necessary given the=20
importance of rapid technology changes in today's marketplace. The=20
transition periods that have been agreed to are workable. We look forward=
=20
to reviewing the words of the final order and implementing the order=20
quickly, so that consumers will be served by exciting new offerings in the=
=20
very near future, including new and more efficient services to our=20
wholesale customers."

* CompTel Comments on FCC Wireline Broadband Order
"Chairman Martin has demonstrated considerable skill and diplomacy in=20
crafting a bipartisan consensus in this order. According to the FCC,=20
today's action has no impact on CompTel's carrier members. CompTel=20
appreciates in particular that the final order will include measures to=20
ensure continued competitive access to facilities and provides a transition=
=20
period for ISP access and USF funding. The Chairman and his Democratic=20
colleagues worked hard to address issues of concern to CompTel members.=20
While we look forward to working with Chairman Martin and the Commission to=
=20
ensure the intent of this order is fulfilled, CompTel remains concerned=20
that the regulatory classification decisions in this order will ultimately=
=20
frustrate the Commission's stated goals and result in less innovation,=20
higher prices, and fewer jobs for Americans. We look forward to release of=
=20
the FCC's order, and we will have further comment when we can evaluate the=
=20
full text."
http://www.comptelascent.org/news/recent-news/080505.html

* Comments of Kyle McSlarrow, NCTA President & CEO Regarding FCC Order to=
=20
Classify DSL as an Information Service
=93We applaud Chairman Martin for making broadband deployment a national=20
priority, and support today=92s FCC decision to promote deregulatory polici=
es=20
that treat like services alike. We invite the telephone companies to take a=
=20
similar approach to regulation of video services and drop their=20
self-serving demands for special treatment by the government when entering=
=20
the video marketplace. A competitive marketplace with a level regulatory=20
playing field for all services, regardless of technology, is one that all=
=20
industries should be prepared to compete in.=94
http://www.ncta.com/press/press.cfm?PRid=3D617&showArticles=3Dok

* NTCA Hails FCC=92s Flexible Regulatory Framework for Rural ILEC Broadband=
=20
Services
The National Telecommunications Cooperative Association (NTCA) today=20
praised the Federal Communications Commission (FCC) for establishing a=20
flexible regulatory framework for rural telephone companies that operate=20
under rate of return (RoR) regulation. The commission=92s move, part of a=
=20
larger proceeding on the appropriate framework for broadband access to the=
=20
Internet over wireline facilities, ensures rural broadband providers will=
=20
be able to continue to fully recover their costs of providing broadband=20
services, specifically digital subscriber line services (DSL), under RoR=20
regulation. The FCC=92s decision allow rural incumbent local exchange=20
carriers (ILECS) that operate under RoR the option of offering broadband=20
services through the use of National Exchange Carrier Association (NECA)=20
tariffs and allows those carriers to participate in NECA=92s revenue=20
pools. RoR regulation enables rural ILECs to obtain the capital necessary=
=20
to build, operate and maintain telecommunications facilities. The=20
combination of RoR regulation and the NECA pooling structure provides rural=
=20
ILECs the assurance that they will recover their substantial investment in=
=20
the network infrastructure that is essential to providing advanced,=20
reliable telecommunications services to rural consumers. NTCA had expressed=
=20
concern that the commission actions in this proceeding might negatively=20
impact the in the stability of the universal service fund (USF). However,=
=20
the commission=92s firm commitment to do =93whatever is necessary=94 to ens=
ure=20
the stability of the fund - including the possible expansion of the base of=
=20
USF contributors - is viewed as a positive development for rural=20
ILECs. NTCA is pleased with the FCC=92s commitment to policies and practic=
es=20
that have promoted broadband deployment in rural areas. More at the URL=20
below...
http://www.ntca.org/ka/ka-2.cfm?folder_id=3D522

* TIA Applauds FCC Decision to Classify Wireline Broadband Services as=20
Information Services
"The Telecommunications Industry Association has long supported the=20
principle that all providers in the very competitive broadband services=20
market should operate in the same minimally regulated environment," stated=
=20
TIA President Matthew J. Flanigan. "Today's historic decision to classify=
=20
wireline broadband services as information services on the heels of the=20
Supreme Court upholding the FCC's similar classification of cable modem=20
services, will have an immediate, significant and lasting impact on=20
investment and innovation in information and communications networks. With=
=20
Brand X decided only in June, we thank the commission and the FCC staff for=
=20
working tirelessly to produce this very important decision in such a=20
remarkably short time. TIA also commits to continue working with the=20
commission as it crafts the new policy framework that will apply in a=20
broadband world."
http://www.tiaonline.org/media/press_releases/index.cfm?parelease=3D05-52

* USTelecom Applauds FCC Move to Market-Based Competition for Broadband=20
Providers
=93The Commission=92s vote today is the right move to bring consumers more=
=20
choice for high-speed Internet service, speed broadband deployment and spur=
=20
investment. After waiting several years for the courts to act, we=20
appreciate Chairman Martin=92s efforts to bring the rules for DSL service i=
n=20
line quickly with the rules for cable modem service. In crafting these new=
=20
rules, the Commission weighed many important issues that affect all aspects=
=20
of the communications business. We applaud the Commission for taking a=20
flexible approach to establish workable rules for all providers. In=20
addition, ensuring a sustainable universal service system is a high=20
priority for USTelecom members and we will work closely with the Commission=
=20
over the next several months to successfully achieve this critical objectiv=
e.=94
http://www.ustelecom.org/news_releases.php?urh=3Dhome.news.nr2005_0805
--------------------------------------------------------------