October 2009

Commissioner Baker Names New Staff

Federal Communications Commission member Meredith Baker announced that Bradley Gillen, Charles Mathias and Christi Shewman will serve as her legal advisors. Commissioner Baker also announced that Millie Kerr has been appointed as her Confidential Assistant and Staff Attorney.

1) Gillen will serve as Legal Advisor for media issues. He has been the Director of Federal Regulatory and Senior Counsel for Dish Network. Gillen began his career in the communications group at Wiley Rein. He received his B.A. from Hampden-Sydney College and his J.D. from the University of Virginia School of Law.

2) Mathias will serve as Legal Advisor for wireless, international and public safety issues. He most recently served as an Associate Bureau Chief in the Wireless Bureau and before that Special Counsel, where he worked on spectrum and wireless policy issues. Before joining the FCC, Mathias held senior legal and government relations positions at Lucent Technologies and Bechtel. In private practice, he counseled companies and individuals in the information and communications technologies sector, and especially companies interested in expanding their business internationally. He began his career as a corporate lawyer at Ropes & Gray LLP in Boston. Mathias received his B.A. from Harvard University before attending the University of Virginia School of Law.

3) Christi Shewman will serve as Legal Advisor for wireline and universal service. Ms. Shewman has served in a number of roles in the Wireline Competition Bureau since 2003, including Chief of the Competition Policy Division. During her years in the Bureau, she managed and was the lead attorney on, among others, the IP-Enabled Services proceeding and various broadband matters. In 2006, Ms. Shewman served as counsel, on detail from the FCC, to the United States Senate Committee on Commerce, Science & Transportation. Before joining the Bureau, she held previous positions with Willkie Farr & Gallagher LLP, the Office of FCC Commissioner Gloria Tristani, and Qwest Communications.

4) Millie Kerr will serve as Confidential Assistant and Staff Attorney to Commissioner Baker. Before joining the FCC, Ms. Kerr worked as an associate for Allen & Overy LLP in London. Kerr received her B.A. from Wake Forest University and graduated from the University of Texas School of Law.

FCC Workshop on Ex Parte Rules

Federal Communications Commission
Commission Meeting Room
445 12th Street SW
Washington D.C. 20554
Wednesday, October 28,
10:00 a.m. to 12:00 p.m.
http://www.fcc.gov/live/

MODERATING PANEL:

  • Austin Schlick, FCC General Counsel
  • Joel Kaufman, FCC Associate General Counsel
  • MaryBeth Richards, Special Counsel to the Chairman for FCC Reform

PANELISTS:

  • Christopher Bjornson, Co-Chair, Federal Communications Bar Association, Access to Government Committee
  • Diane Cornell, Vice President, Government Affairs, Inmarsat, Inc.
  • Jane Mago, Executive Vice President and General Counsel, National Association of Broadcasters
  • Amy Mehlman, President, Mehlman Capitol Strategies
  • John Muleta, Chief Executive Officer, M2Z Networks, Inc.
  • Jef Pearlman, Staff Attorney, Public Knowledge
  • Andrew Jay Schwartzman, President and CEO, Media Access Project
  • David H. Solomon, Partner, Wilkinson Barker Knauer, LLP


FCC Seeks Public Input on Draft Rules to Preserve the Free and Open Internet

The Federal Communications Commission is seeking public input on draft rules that would codify and supplement existing Internet openness principles.

Comments are due on Thursday, January 14. Reply comments are due on Friday, March 5.

Under the draft proposed rules, subject to reasonable network management, a provider of broadband Internet access service:

1. would not be allowed to prevent any of its users from sending or receiving the lawful content of the user's choice over the Internet;

2. would not be allowed to prevent any of its users from running the lawful applications or using the lawful services of the user's choice;

3. would not be allowed to prevent any of its users from connecting to and using on its network the user's choice of lawful devices that do not harm the network;

4. would not be allowed to deprive any of its users of the user's entitlement to competition among network providers, application providers, service providers, and content providers;

5. would be required to treat lawful content, applications, and services in a nondiscriminatory manner; and

6. would be required to disclose such information concerning network management and other practices as is reasonably required for users and content, application, and service providers to enjoy the protections specified in this rulemaking.

The draft rules make clear that providers would also be permitted to address harmful traffic and traffic unwanted by users, such as spam, and prevent both the transfer of unlawful content, such as child pornography, and the unlawful transfer of content, such as a transfer that would infringe copyright. Further, nothing in the draft rules supersedes any obligation a broadband Internet access service provider may have -- or limits its ability -- to deliver emergency communications, or to address the needs of law enforcement, public safety, or national or homeland security authorities, consistent with applicable law.

The Commission is also seeking comment on how it should address "managed" or "specialized" services, which are Internet-Protocol-based offerings provided over the same networks used for broadband Internet access services.

Statements:

FCC Chairman Genachowski
"Given the importance of the Internet, it should come as no surprise that over the past years, the Commission has considered the question of how to safeguard the free and open Internet in more than 10 different proceedings, building a record of over 100,000 pages of comments, submitted by approximately 40,000 companies, organizations, and members of the public.... Now it's time to take the next step growing out of the record and the Commission's experience—launching a process to craft reasonable and enforceable rules of the road to preserve a free and open internet. Because, let's be honest, the Commission's actions, laudable in so many respects, have left the protection of the free and open Internet unnecessarily vulnerable and uncertain."
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-294159A2.doc

Commissioner Copps:
"I have advocated long and hard for the Commission to establish a mechanism to ensure that consumers have continued access to a vibrant, open Internet—an Internet that was born on openness, thrived on openness, and depends on openness to realize its going-forward potential. This Commission will act, I predict, to maintain that openness. We need rules-of-the-road to make that happen. We need expert judgment to evaluate any and all allegations that the freedom of the Internet is being compromised. And we need a venue with authority to redress such wrongs if, indeed, such wrongs are found. I stated my preference for clear-cut rules, including a fifth principle of non-discrimination, at the time we adopted the Four Principles of the Internet Policy Statement. Now, four years later—having gained a lot more knowledge and some practical experience in applying the principles of Internet openness—we finally step up to the critical challenge of developing meaningful, predictable, transparent and clearly enforceable rules of the road. And we propose a sixth rule of transparency. Users have a right to know how the network is being managed and what practices providers are employing. This sixth rule of transparency is not just good policy—it is essential policy."
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-294159A3.doc

Commissioner McDowell:
"Some questions that I hope get addressed in the record are: Is the Commission suggesting today that the government draw a bright line of distinction between networks and applications in an effort to justify regulation in this space? If so, should not the Commission refine its view because networks and applications are converging faster than regulators can measure? Otherwise, would the Commission not be favoring one market player over another absent evidence of an abuse of market power? For example, Cisco builds Internet routers that contain over 28.1 million lines of code. How are we to ascertain whether each line of code offers a pure operating system function or some other application that adds value? Should that be the Commission's role? Can we make such determinations efficiently? Do we even have the statutory authority to do any of this? These thorny questions abound, and I strongly encourage commenters to fill the record with solid facts and legal theories to substantiate their points of view."
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-294159A4.doc

Commissioner Clyburn:
"An open Internet is, perhaps as much as anything else, "the great equalizer." It allows people with innovative ideas to succeed on the merit of those ideas. It also provides a voice to those who often are not afforded one. Smaller businesses can compete despite not being firmly established or well financed on day one. The quality of the product or opinion stands for itself, and consumers are the ultimate arbiters of which businesses thrive at the end of the day. To me, that is what this proceeding is all about: preventing barriers to entry and ensuring that Americans have access to the best and most useful information and services. And that is why I am pleased to support this item. I believe that preserving an open Internet is essential, not only to safeguard everything that the Internet does for us today, but also to help address current challenges, such as the digital divide."
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-294159A5.doc

Commissioner Baker:
"I dissent in part today because, as a threshold matter, I am not convinced that there is a sufficient record to establish that a problem exists that should be addressed by Commission rules. As I have said previously, we should not adopt regulations to address anecdotes where there is no fact-based evidence that persuasively demonstrates the presence of a problem. My concerns about the need to regulate are heightened in several of the areas that are covered by the item before us today."
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-294159A6.doc

Chairmen Rockefeller and Waxman Statement on FCC Open Internet Rulemaking
"Today, the Federal Communications Commission adopted a Notice of Proposed Rulemaking concerning the establishment of rules designed to preserve and protect the open nature of the Internet. We have each, in the past, voiced our support for policies that protect consumers and promote an open Internet. Our positions have not changed. We write to support your efforts to conduct this rulemaking in an open and transparent manner that is fair to all parties. We expect that the Commission will make every effort to consider all voices prior to voting on final rules. We believe this issue deserves nothing less from the Commission, and we look forward to working with you and your staff as this process goes forward."
http://commerce.senate.gov/public/index.cfm?FuseAction=PressReleases.Det...

Sens Dorgan (D-ND) and Snowe (R-Maine) Commend FCC
"Network neutrality protects the fundamental rights of Americans in using the Internet and accessing content, applications, and services of their choice. A well-reasoned network neutrality policy also ensures a level playing field for companies large and small as they create an online presence, and will continue to foster the entrepreneurial innovation found not only in corporate office suites, but in college dorms across the country."
http://dorgan.senate.gov/newsroom/record.cfm?id=319221

Congresswoman Donna F. Edwards Applauds FCC's Decision to Seek Public Opinion on Preserving a Free & Open Internet
"I commend the Federal Communications Commission on taking the next step towards ensuring a free and open Internet for everyone. Opening the process to the public will provide all interested parties an opportunity to express their views to the FCC on how to guarantee that the Internet remain the greatest open medium for information and commerce in our history. Strong network neutrality protections are critical to guarantee online freedom for minority, rural, and other entrepreneurs to develop their businesses and reach new consumers, thereby contributing to overall economic growth. These protections will spur infrastructure expansion, helping to bring Internet access to consumers and rural, urban, and under-served communities across the country."
http://donnaedwards.house.gov/index.cfm?sectionid=24&parentid=23&section...

Future of Music Coalition Statement of FCC Draft Principles for Network Neutrality
"Although we're only beginning to get a sense of what a legitimate digital music marketplace looks like, we're encouraged by the ever-increasing variety of licensed services and the amazing and innovative ways artists are using the internet to connect with fans. By undertaking these public proceedings, the Commission's leadership is helping to guarantee that the internet continues to be a place where creativity and commerce can flourish."
http://futureofmusic.org/press/press-releases/future-music-coalition-sta...

Public Knowledge Praises FCC Action on Net Neutrality
"It is clear to us that at the end of the proceeding, consumers and innovators will benefit from an open and non-discriminatory Internet. As a result, the economy will benefit in the future, as it did in the past, from the stability of an Internet that grants equal opportunity to all to participate in an open Internet environment. We particularly want to commend the members of the FCC for acting on this notice after enduring one of the most brutal assaults on the Commission in recent memory. Even within that environment, there is clear evidence that consensus is evolving. As we have seen from the statements of leading industry representatives in recent days, the differences between our positions are narrowing, a welcome development for all."
http://www.publicknowledge.org/node/2715

Free Press Welcomes Progress on Net Neutrality
"After years of hard work, we are pleased that the FCC has begun this crucially important rulemaking on Network Neutrality. A well-crafted Net Neutrality rule can ensure that the open Internet continues to serve as a great force for economic innovation and democratic participation for all Americans. Today's vote is an important step toward securing the open Internet and a victory for the public interest and civil rights organizations, small businesses, Internet innovators, political leaders, and millions of people who have fought to get to this point."
http://www.freepress.net/node/73792

Speak Your Piece: Internet Ghosts

[Commentary] The current battle over Network Neutrality has deep roots, oddly enough, in rural America. In 1891, a Kansas undertaker named Almon Strowger patented the first telephone switch. His innovation, he would later say, was compelled by a local telephone operator who limited calls to his business while favoring calls to his competitor, with whom she was romantically involved. The telephone switch, in turn, enabled federal "common carrier" rules to ensure non-discriminatory treatment of all phone calls, a regulatory regime which has governed our nation's telephone system for more than 100 years. But there's more to the net neutrality back-story. In the 1950s, a Texas cattle rancher named Thomas Carter believed he could connect a two-way radio to the telephone back at his ranch-house, allowing him to make calls while riding his far-flung ranch on horseback. By 1958, his CarterPhone was working and ready to market. But AT&T cried foul, claiming this new application might harm its network. A 10-year legal battle ensued. It ended when the Federal Communications Commission approved the CarterPhone rule, which stated that innovative applications could connect if they did no harm to the network. The CarterPhone regulation gave us innovations such as fax, answering machines, and data modems. Combined, common carrier and CarterPhone regulations are the heart of net neutrality.

Why the Great Internet Buildout Is Spurring M&A

If you're a BlackBerry or iPhone user/addict, then you are partly responsible for the great Internet buildout. Those cute apps that look up baseball scores or let you log into Facebook eat up enough bandwidth to put the backend infrastructure of phone companies under pressure, forcing them to upgrade their networks with new and fancy gear. Equinix, a data center provider, on Wednesday said it was going to buy competitor Switch and Data for about $689 million in cash and stock. And now Tellabs, a Naperville, Ill.-based maker of telecom equipment, says it's buying WiChorus, a mobile Internet equipment maker based in San Jose, Calif. Tellabs is paying $165 million in cash for the upstart company whose venture backers include Pinnacle Ventures, Accel Partners, Mayfield and Redpoint Ventures and which counts Clearwire among those that uses its products. WiChorus' SmartCore platform competes with the likes of Starent, which itself is in the process of being acquired by Cisco Systems for $2.9 billion. What's really going on is pretty simple: Today's consumers are increasingly spending more time on the web — and they're using the mobile web almost constantly.

Private investment key to broadband build-out

Speaking at SuperCOMM, Frank Gallagher, managing director and group head of the communications and media group at Stifel Nicolaus, warned a panel of telecommunications service providers, "If you want broadband, that's fine, but don't expect us to fund it if you can't see a return." The panel agreed that private investment will be a key driver of broadband infrastructure build out and stressed the need for the Federal Communications Commission to move quickly on issues like inter-carrier compensation and the Universal Service Fund. Whether it's a wireline or wireless build out, broadband deployment is capital intensive, and it invariably requires a long wait for any return on investment (ROI), said Tom Tauke, executive vice president of public affairs, policy and communications at Verizon. ROI requires adoption by customers, which is proving to be a challenge. Tauke said Verizon is relying on monthly bills for access and services to support the capital investment, but with the price of access declining, the carrier is constantly looking for other sources of revenue from things like advertising. Compounding this issue is the fact that broadband expansion into the most rural areas is not economically feasible today, added Steve Davis, senior vice president of public policy and government relations at Qwest Communications. The capital expenditures required to provide services is significantly higher and must be spread upon a smaller number of customers. These rural areas should be top of mind for the FCC, he said.

AT&T sees dual wireless network future

To accommodate consumers' rapidly changing expectations, mobile operators will need to adopt a dual approach employing wide-ranging and shorter-ranging wireless networks together, according to John Stankey, AT&T's president and chief executive officer of operations. "I don't think a single macro wireless network is sustainable over time, given the pace of spectrum availability and what's actually out there in terms of fixed spectrum," Stankey told the SuperCOMM trade show. "I think the reality is that there will be macro and micro networks. We're starting down that path at AT&T, focusing on how we make WiFi and licensed spectrum a more seamless experience for customers. Other variants will come up on this over time. But to manage the kind of mobile experience customers will require and truly have the quality of service they need will require a multiple approach to network management in the wireless space. You're going to see micro and macro in terms of licensed and unlicensed spectrum. This is a key architecture element we're all going to have to come to grips with." As an example, Stankey cited events crowded with customers at which AT&T has seen WiFi handle 20% of the data load.

LTE may be too little too late

A new report from Unwired Insight shows that the relentless growth of 3G traffic volumes will create a 3G network capacity crisis for some mobile network operators as early as 2010. Early deployment of Long Term Evolution (LTE) will be essential, and continued growth in data consumption will create insatiable demand for LTE spectrum. 3G traffic volumes are set to increase by a factor of 20 by 2015, driven by many factors, including the increased adoption of traffic-intensive services such as mobile broadband and mobile TV services, the increased proportion of smartphones and dramatic reductions in mobile data pricing. Key findings of the new report are: 1) As 2G users continue to migrate to 3G services, the available capacity per 3G user will decline rapidly in networks utilizing HSPA, to less than 100MB per user per month in some cases. LTE will be essential to counter this decline. 2) While LTE promises peak data rates of over 100Mbps, this is only possible with wide allocations of spectrum, and even then is only experienced by a few lucky users that have particularly good radio conditions. Other users will achieve much lower data rates, so the average data rates from practical LTE networks will be nowhere near the peak values. 3) Network operators will have an insatiable appetite for LTE spectrum, to stand any chance of keeping up with forecast traffic demand. For some operators, 10MHz of spectrum will be able to support forecast traffic levels only until 2011. A further 10MHz will be needed by 2012 and another 10MHz in 2013. In addition, some operators will have to embark on major network expansion programmes to keep pace with forecast traffic levels.

AT&T exec implies iPhone exclusivity in U.S. ending

AT&T Mobility CEO Ralph de la Vega strongly implied that the carrier's exclusive deal to sell the iPhone in the U.S. is ending, although he gave no details. Asked what AT&T plans to do should the exclusive deal come to an end as has been rumored, de la Vega said the iPhone is a good source of new subscribers, but is only part of a smartphone portfolio that gives good results. "We have a legacy of having a great portfolio...that will continue after the iPhone is no longer exclusive to us," de la Vega said. "We think we will continue after the iPhone...to drive [results]...." De la Vega said that while the iPhone has been a "good source of new gross [subscribers] for us," the new subscribers from the iPhone in the third quarter was only one-third of the total from all devices.

NTIA Broadband Data Transparency Workshop

The National Telecommunications and Information Administration (NTIA) will host a public meeting regarding data related to broadband Internet access that the agency collects, data needs of researchers, and future broadband research. The meeting will be held October 30, 2009 and will consider: 1. The types and frequency of broadband Internet access data that NTIA can compile through its ongoing programs and research that will be useful to the research community. For example, NTIA has categories of data from the BTOP and State Broadband Data Program and is gathering information through the next CPS that may be useful to the research community; 2. The current sources of data available to the research community for research related to broadband Internet access; 3. The economic, social, policy, or other areas that research related to broadband Internet access can inform; 4. The emergent themes, trends, and new directions within the research community regarding broadband Internet access data; 5. The data format preferred by researchers including those for distributing broadband-related data on the Web to promote maximum transparency for researchers and the interested public; and 6. The legal requirements regarding the agency's collection of and dissemination of data from third parties.