November 2010

FCC Seeks Info on Comcast-Level 3 Dispute

Federal Communications Commission Chairman Julius Genachowski said he wants more information about a complaint lodged Nov 29 by Level 3 against Comcast over fees the broadband provider is charging Level 3 for streaming movies over its network.

"It would be premature to comment on it without knowing what the facts are. We're looking into it. The staff is looking into it," Chairman Genachowski said. Level 3 hasn't filed a formal complaint with the agency yet, however the FCC doesn't need a complaint to look into the issue.

Comcast is willing to have the FCC oversee negotiations with Level 3 Communications to resolve their dispute over Internet interconnection fees. "[W]e have not given up hope that Level 3 will make a reasonable business decision in the context of the parties' overall commercial relationship... Commercial resolution is the appropriate path forward here," Comcast said in an ex parte filing with the FCC. "Nevertheless, if we are unable to resolve the issues satisfactorily in these conversations, we would be pleased to participate in a meeting between the parties overseen by and with the participation of Commission staff if that will facilitate a better understanding of the matters at issue," Comcast said.

Comcast said the large increase in the amount of traffic Level 3 wants to send to Comcast's network on a "peering" basis -- about twice previous levels -- would throw traffic between the two networks grossly out of balance. As such, Comcast asked Level 3 to enter into commercial negotiations to achieve a solution that accounts for this new and significant traffic imbalance. "What Level 3 is suddenly pushing -- a ‘new theory' of peering -- would throw the traditional, ‘balanced traffic' peering rulebook out the window, give Level 3 an unfair cost advantage over its competitors, and shift all of the costs from Level 3 and its content customers onto Comcast and its high-speed Internet customers," Comcast said in the filing. Previously Comcast and Level 3 exchanged Internet traffic as part of a commercial interconnection agreement, under which Comcast paid Level 3 for interconnection facilities, according to the MSO. Although Comcast terminated more of Level 3's traffic than vice versa, that was well within the industry's established bounds for "roughly balanced" traffic and they exchanged their on-net traffic on a settlement-free basis, Comcast said.

The investment firm Stifel Nicolaus said Tuesday that a dispute involving a new fee Level 3 says Comcast has imposed for transmitting online movies and other content could hamper Comcast's push to gain regulatory approval by the end of the year for its merger with NBC Universal.

FCC Proposals to Boost Spectrum Research and Spectrum-Efficient Wireless Technologies

The Federal Communications Commission launched two proceedings designed to promote investment and create jobs in developing innovative spectrum-efficient technologies and services to help meet the growing demand for wireless broadband services.

The first action is a Notice of Proposed Rulemaking that seeks to expand the FCC's existing Experimental Radio Service rules to promote cutting-edge research and foster development of new wireless technologies, devices, and applications.

Specifically, the FCC proposed a new type of license, called a "program license," which would give qualified entities broad authority to conduct research without the need to seek new approval for each individual experiment.

The FCC proposed three types of program licenses:

Research license: This would allow universities, laboratories, and other qualified research institutions to conduct experiments over a wide variety of frequencies and other operating parameters.
Innovation Zone license: This would identify discrete geographic areas -- generally relatively remote locations -- where researchers could conduct a wide range of experiments.
Medical license: This would allow medical institutions to innovate and develop new devices that can save lives, have a significant impact on reducing medical costs for consumers, and provide new treatment options for wounded service men and women.

The FCC also proposed ways to streamline and clarify the existing rules that support conventional experimentation. Among other things, these changes would expand opportunities for researchers and manufacturers to conduct market trials as part of product development.

The second action is a Notice of Inquiry to promote wireless innovation by examining how "dynamic access" radios and techniques -- which use technology to squeeze the most use out of available spectrum -- can provide more intensive and efficient use of spectrum. The Commission seeks comment on how to advance these technologies, whether by creating test-beds or modifying spectrum management practices and policies for future uses of both licensed and unlicensed devices and services.

The Notice of Inquiry specifically seeks feedback on the usefulness of the model recently adopted for television white spaces devices for providing access to other spectrum bands. The FCC also asks whether spectrum sensing is, or could become, a viable technology for providing dynamic access in certain frequency bands. The NOI seeks comment on whether dynamic access technologies and techniques can be used in conjunction with current FCC secondary market policies to increase spectrum use.

Finally, the NOI asks whether the FCC's "Spectrum Dashboard" could be enhanced to better utilize the potential of dynamic access technologies. The Spectrum Dashboard tracks how spectrum licenses are used around the country and the availability of spectrum locally.

FCC Proposes Initial Steps to Open TV Spectrum to New Wireless Broadband Services

In a Notice of Proposed Rulemaking, the Federal Communications Commission suggested making more efficient use of the nation's airwaves and set the stage for voluntary broadcast spectrum auctions that could provide consumers with the robust mobile broadband services they demand while preserving over-the-air TV that many rely upon. The resulting efficient use of airwaves will help ensure that America leads the global wireless revolution and enjoys the resulting jobs and economic growth.

Specifically, the NPRM proposes that wireless broadband providers have equal access to television broadcast frequencies that could become available in spectrum auctions. The Notice seeks comment on establishing new allocations for both fixed and mobile wireless services in the TV broadcast bands. The Notice also explores enabling TV stations to voluntarily combine their operations and distinct programming lineups on a single TV channel. The Notice requests comment on the proposed rules that would enable TV broadcasters to opt to share channels by further tapping the technical capabilities that became available following the nation's historic transition to digital television in 2009. Finally, the Notice of Proposed Rulemaking seeks comment on steps that would improve TV reception on the VHF channels (2-13), such as by increasing transmitting power and establishing minimum performance standards for indoor antennas. These improvements could provide better VHF reception for consumers and encourage broadcasters to use valuable VHF channels in the future.

The proposals in the rulemaking will pave the way for future actions that will propose service, licensing and auction rules for new broadband service operators to utilize voluntarily vacated TV spectrum.

Rep Markey Plans To Introduce Legislation Next Year To Help FCC Meet Broadband Goals

Hill and industry reaction followed quickly on the heels of the Federal Communications Commission's unanimous vote to pave the way for reclaiming and repurposing broadcast spectrum for broadband use.

Rep Ed Markey (D-MA) said in a statement that he was going to introduce legislation next year to help the FCC meet its broadband plan goal of freeing up 300 MHZ for broadband within five years and 500 within 10 years. That plan requires congressional action to approve incentive auctions to compensate broadcasters for moving off spectrum.

Public Knowledge's Harold Feld said, "We commend the Federal Communications Commission (FCC) for its actions this morning on spectrum policy. Together, they show the willingness to make certain that all options are being considered, from auctions to leasing spectrum to use of unlicensed spectrum. The Commission’s actions will facilitate imaginative, new and innovative approaches to making more efficient use of spectrum, which will lead to increased benefits to consumers."

"[The National Association of Broadcasters] has no quarrel with incentive auctions that are truly voluntary," said NAB president Gordon Smith. "Going forward, we believe policymakers have an obligation to maintain digital TV services currently provided by broadcasters and to allow free TV viewers to benefit from DTV video innovations. NAB will oppose government-mandated signal strength degradations or limitations, and new spectrum taxes that threaten the future of free and local."

"CTIA and its members look forward to working with the FCC, Congress and all stakeholders to ensure that significant amounts of broadcast spectrum are made available for auction," said CTIA: The Wireless Association president Steve Largent. "Bringing this spectrum to market will allow our members to bid for the right to purchase it, resulting in billions of dollars for the U.S. Treasury and enabling the wireless industry to continue to invest and fuel our ‘virtuous cycle' of innovation and competition."

Verizon, AT&T split on approach to FCC

After weeks of discussions with the Federal Communications Commission (FCC), the nation's two largest phone companies still have disagreements on what kinds of network neutrality rules they can swallow.

With FCC Chairman Julius Genachowski preparing to reveal his network neutrality plans, AT&T and Verizon have been split in their approaches to agency deliberations this month. Verizon has been publicly icier than AT&T about the prospect of an FCC-led net neutrality compromise, making a concerted effort to elbow the decision back into Congress. AT&T has publicly stated a desire to reach an FCC-led deal. The company has engaged heavily with the FCC this month, unleashing a flurry of activity aimed at shaping the an FCC decision through both public and private maneuverings.

Grant TV Stations More Spectrum Freedom

[Commentary] Federal Communications Commission Chairman Julius Genachowski has demonstrated exceptionally energetic devotion to increasing the availability of broadband. But his perceptions of the need for broadband and how to meet it are both misguided and backward-looking.

The value of broadband in education, health care and economic growth is obvious. But it does not follow that all broadband must be wireless or that TV service must be curtailed, stifling innovations like HD, multiple streams and 3D. If the seemingly insatiable appetite for wireless services can be met with a finite amount of spectrum, the only effective way will be by removing technical constraints, allowing a mixed broadcasting and broadband service to evolve. Freeing broadcasters from the constraints of the ATSC digital standard can be done now, without legislation, and will produce a much faster and more effective broadband result than any spectrum “repurposing” plan.

The question is not whether spectrum should be used for broadband or broadcasting but whether the FCC will allow it to be used for broadband and broadcasting.

Comcast: National Networks Should Not Be Part Of Arbitration Regime

Comcast would prefer that the Federal Communications Commission not impose outside arbitration conditions on its proposed joint venture with NBCU. But if it does, the company says, it should not apply them to national cable network negotiations.

There is precedent for program access arbitration conditions on regional sports nets, and Comcast recognized that in a conversation with John Flynn, FCC senior counsel for transactions, according to an ex parte filing. Kathy Zachem, Comcast vice president for regulatory and state legislative affairs, said that "to the extent the Commission considers a program access arbitration remedy for MVPDs, I emphasized that the weight of the economic and factual evidence in the record compels the exclusion of national cable networks from any such condition." She also argued that substituting arbitration for the FCC complaint process for RSNs was problematic as well.

Consumers Union Steps Up Opposition to Comcast-NBCU Deal

Consumers Union, one of the nation's most respected consumer advocacy groups, is stepping up its opposition today to the proposed $30 billion combination of Comcast and NBC Universal with a new ad campaign calling for the deal to be blocked.

The non-profit will canvass the city this week with a 10x22 foot "mobile" billboard featuring an image of a boa constrictor that resembles a TV cable and the tagline: "Don't Constrict Choice - Reject the Comcast Buyout of NBC." The ad campaign also features a new website, SayNoToComcastNBC.com, that provides a means for visitors to contact the FCC about the pending transaction. Both the agency and the Justice Department have entered the final stretch for their regulatory reviews of the proposed joint venture, which would create a juggernaut in the areas of telecommunications and television production and distribution. Consumers Union and other critics insist that approving the deal could result in higher prices and fewer programming options for consumers, abusive behavior against smaller competitors and reduced opportunities for independent producers.

Bad Timing: Comcast, Netflix, NN, Cable Modems, and NBCU

[Commentary] Comcast, the largest broadband provider, largest pay-TV company, and third-largest telephone company in the country, distributes communications services to more than a third of the country. Today Comcast’s existing overwhelming market power was on display in major public battles with (1) Level 3 and (2) cable modem manufacturer Zoom. The takeaway from today: No market forces are constraining Comcast - or any of the other major cable distributors, none of which compete with each other.

How will consumers and innovation be protected from their machinations? The Federal Communications Commission is currently facing two defining moments in US telecommunications policy, and it’s unclear what the Commission is going to do in either case. Will the FCC act to relabel high-speed Internet transmission services, reversing the radical Bush-era deregulatory turn? Will the FCC block the Comcast/NBCU merger? Can we expect that anything will happen (at all) to ensure that local monopoly control over communications transport isn't leveraged into adjacent markets for devices and content? What will the legacy of the FCC be, as the looming cable monopoly stops looming and starts muscling levers into place?

Amazon charges Kindle users for free Project Gutenberg e-books

Kindle readers, take note: You may have been paying for books you could legally download for free -- in nearly identical editions -- elsewhere.

The titles in question aren't just public-domain books that have long been freely available at such sites as Project Gutenberg. They appear to be the exact Gutenberg files, save only for minor formatting adjustments and the removal of that volunteer-run site's license information. This activity is, however, permitted under the Gutenberg license. As its introduction explains: "If you strip the Project Gutenberg license and all references to Project Gutenberg from the ebook, you are left with a public domain ebook. You can do anything you want with that."

Project Gutenberg Literary Archive Foundation chief executive Greg Newby expressed frustration about what he called an old problem for the non-profit organization. "Is this legal? Yes," he wrote in an e-mail Nov. 11. "Is it ethical? I don't think it is."

Benton

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