November 2009

NAB: HD Is Driver, Retrans Is Beneficiary

National Association of Broadcasters Executive VP and General Counsel Jane Mago said that for television broadcasters to deliver the highest quality high definition (HD) digital television programming, particularly for live sports, they would need "all the spectrum available for such a broadcast," pointing out that viewers have come to expect no less and that HD was "a large part of what the DTV transition was all about." Broadcasters benefit too, she suggested, because cable operators recognize the value of those signals and are willing to pay for them. She said that broadcasters' point was that over-the-HD was serving the twin goals of keeping "multichannel video programming distributor (MVPD) subscriber costs in check" by providing an alternative, free source, and providing a revenue source for broadcasters because "MVPDs also recognize the importance of HD such that it has recently become an important element in retransmission consent negotiations." "I have great respect for Jane," said National Cable & Telecommunications Association President Kyle McSlarrow, but he also said he could not let the part about keeping cable prices in check go without a response. "The assertion that a free platform given to broadcasters by the government worth billions and billions of dollars in return for which they would provide free programming is going to keep MVPD subscriber costs in check at precisely the same time they argued they needed the spectrum in order to charge more for retransmission consent is laughable."

The Scoop on NARUC: From Washington to Main Street, Broadband Questions Remain

One striking sentiment dominated this week's convention of the National Association of Regulatory Utility Commissioners: The federal government remains on nearly as steep a learning curve on crafting the future of broadband as many state agencies, and the best work ahead will likely get done when public and private concerns team up. "Of course more needs to be done, and they're still learning [in Washington] how to reliably and effectively get the funds out," said David Svanda of Svanda Consulting in Clarksville, Md., and a past president of NARUC. "It's an ongoing learning process, and they clearly have their feelers out to learn more," said Svanda. "I think they'll take very seriously what they hear here. You couldn't have two better people on the case." By "they," Svanda meant Larry Strickling, of the National Telecommunications and Information Administration, and Jonathan Adelstein, of the Rural Utility Service.

Joint Center Applauds New Report on Expanding Broadband Adoption

The U.S. Broadband Coalition's report on increasing broadband adoption and use got an endorsement from the Joint Center for Political Economic Studies Media and Technology Institute. Joint Center CEO Ralph Everett said the coalition should be commended "for recognizing the positive impact that rapid broadband adoption can have on our economy and highlighting ways to accelerate the process."

Summit Speakers Want More Broadband Access For Minorities, Criticize Net Neutrality

The opening speaker of a summit focused on improving broadband penetration to minority and low-income areas of the country, and criticized advocates of network neutrality for being out of touch with the needs of minorities as he attempted to enlist the mantle civil rights leader Martin Luther King into his cause. "[L]et us remember the worlds of Dr. Martin Luther King, Jr., 'All progress is precarious, and the solution of one problem brings us face-to-face with another problem,'" said Julius Hollis, the founder of the Alliance for Digital Equality, in prepared remarks. "If we fail to find common-ground on the issues before the U.S. Federal Communications Commission relative to the rulemaking governing broadband adoption, the financing of broadband infrastructure and the over-arching issue of net neutrality, the long-term socio-economic chaos that will be inflicted upon our society would be far too devastating to comprehend," warned Hollis.

Broadband Plan of Attack is Evolving, Say Industry and Regulators

While the Federal Communications Commission is closing gaps in its broadband plan, "There's a heavy push to get from where we are to where we want to be in the next couple of months. I'd encourage anyone who has any input to get involved now," said Robert Curtis, director of deployment for the national broadband plan at the Federal Communications Commission. "There's evidence of a significant economic bottleneck, particularly between the second mile and middle mile. And there's a middle mile gap, particularly in rural areas, where we might have broadband available, but not everyone has access to it." Curtis added: "There's also a last mile gap in the wireless space, where we need a complete spectrum overhaul." Possible solutions might involve a number of strategies including satellite backhaul, microwave daisy chain towers, more municipal fiber and more effective fiber placement, Curtis said.

Grants Will Slip to February, NTIA Concedes in Third Quarter Progress Report To Congress

In a report to Congress, the NTIA said Wednesday that it won't conclude doling out the first round of broadband stimulus funding until February 2010. The Department of Commerce's National Telecommunications and Information Administration clarified in its third quarterly progress report to Congress this week that it will be dolling out the entirety of the grant money during the next ten months. The year 2010 is going to be a busy time for the period for both the NTIA and the Agriculture Department's Rural Utilities is the other agency, the two government entities charged with distributing $7.2 billion of federal funding. "NTIA will not conclude the first round of BTOP funding at the end of 2009 as originally targeted, but is on course to do so in February 2010," the report states.

Bigger US Role in Broadband Is Likely

The Federal Communications Commission began to lay the groundwork for a bigger federal role in the broadband business Wednesday, outlining the hurdles the U.S. needs to overcome to improve the availability of high-speed Internet access. The FCC identified a number of issues the government should address, including the high cost of laying new broadband lines in rural areas, a lack of airwaves for wireless Web access and ill-informed consumers. FCC officials noted Wednesday that because more Americans are relying on smart phones to access the Internet, more airwaves need to be devoted to wireless broadband service. Agency officials have previously floated a plan to take some airwaves from television broadcasters and use them for wireless devices instead. Broadcasters are unhappy about that plan. The agency took a step toward expanding wireless Web access by passing a new rule Wednesday to help wireless companies speed up local officials' decisions on new cellphone towers. Wireless companies asked the FCC for help, because they have had problems in the past getting state and local land-use regulators to make decisions on siting new cellphone towers. FCC officials said they are concerned consumers don't know enough about the actual speeds of broadband connections before they sign up with a provider. Often, the speed advertised by an Internet provider is much faster than the actual speed a consumer gets at home, which makes it harder for consumers to compare competing services. FCC officials Wednesday didn't say exactly what they would propose to address this. The agency is also looking at how to increase the use of broadband among lower-income people and minorities, who subscribe at lower rates than the general population.

FCC identifies Critical Gaps in Path to Universal Broadband

The task force gathering data and developing draft proposals for the Federal Communications Commission's National Broadband Plan has identified critical gaps in the nation's policies, programs and practices that must be filled before America can take advantage of the technological advantages that universal adoption and deployment of affordable, robust broadband can bring. These gaps range across all elements of the broadband ecosystem, including networks, applications, devices, and end-user adoption.

Key gaps identified by the task force include:

1) Federal Universal Service Fund (USF) Structure: Doesn't support broadband deployment and adoption despite over $7 billion spent to subsidize telecommunications annually.

2) Broadband Adoption Gap: Increases the cost of digital exclusion to society.

3) Consumer Information Gap: Undermines competition, innovation, and choice.

4) Spectrum Gap: Frustrates mobile broadband growth.

5) Deployment Gap: High costs can limit broadband deployment.

6) Television Set-Top Box Innovation Gap: Hinders convergence, utilization, and adoption.

7) Personal Data Gap: Users need to control their own information.

FCC Chairman Not Sure FCC Can Gauge Spectrum Demands

Federal Communications Commission Chairman Julius Genachowski raised doubts that the FCC would be able to figure out just what the spectrum demands of will be, but made it clear that the wireless industry would need more. The FCC's Wireless bureau chief added that it would need to find it quickly, while broadband advisor Blair Levin said some broadcasters had been receptive to suggestions that they give up some of theirs. "I am not confident that we will identify the spectrum we will need to meet the demands of the country," Chairman genachowski told reporters Wednesday following an FCC public meeting featuring a status report on the gaps between where the nation is and needs to be in terms of broadband deployment and adoption. Chairman Genachowski said he thinks there needs to be a lot of work done by all parts of the broadband "ecosystem" (a term echoed throughout the meeting to suggest the holistic approach necessary to solve the problem of broadband deployment and adoption). He said not meeting those spectrum demands is one of the "main risks" to a successful plan. He said the answer has multiple answers, one of which is identifying sufficient spectrum, another is finding ways to use spectrum more efficiently as well as having more efficient devices.

Chairmen Waxman and Boucher Request GAO Examine Spectrum Issues

House Commerce Committee Chairman Henry Waxman and Communications Subcommittee Chairman Rick Boucher sent a letter to Gene Dodaro, Acting Comptroller General of the U.S. Government Accountability Office (GAO) requesting that GAO examine a number of important spectrum issues. Specifically, Chairmen Waxman and Boucher asked GAO to evaluate matters related to federal spectrum uses, commercial spectrum uses, and spectrum sharing opportunities.

Benton

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