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January 2011

Jan 1-7, 2011: 2011 Sees Quick Start for Telecom Policy

2011 Sees Quick Start for Telecom Policy

The first week of 2011 was not a quiet one on the communications policy front. As happens every year, technology companies are gathered in Las Vegas to show off their new wears at the Consumer Electronics Show. But for the past few years, the show has not been only about the technological wow factor, but the intersection of technology and policy. For many DC policymakers, CES is now an important venue to understand the latest technology advances, to explain new policy and to hear back about how policy impacts innovation. See our coverage of CES.

A big push at CES has been smart -- or Internet-connected -- televisions. Many companies want to be part of delivering content directly to the television via the Internet. But traditional pay TV providers like cable operators seem to be pushing back. Is 2011 the year ops (try to) kill cord cutting? We'll see. Follow updates on policy issues related to digital content.

The 112th Congress convened on January 5th with new leadership in the House of Representatives. As republicans assume chairmanships of committees, look for increased oversight of both the Federal Communications Commission and the broadband stimulus programs at the National Telecommunications and Information Administration and the Rural Utilities Service (http://benton.org/node/47619). House Republicans seem bent on a fight to overturn the FCC's newly-adopted open Internet/network neutrality rules. Telecom giant verizon announced at CES that it will lobby Members of the House to pass an overhaul of telecommunications law, updating it for the broadband world. Having gotten past the network neutrality issue, the FCC is now focusing on freeing up more spectrum for mobile broadband and plans on asking Congress for the authority to hold incentive auctions to entice broadcast television stations to free up spectrum licensed to them but underutilized.

It is not just House Republicans who think the network neutrality issue is not dead. Industry players at CES say the rules are very much a work in progress. And this week, mobile phone and Internet provider MetroPCS announced plans introduced a new pricing plan emplying a long-talked about tactic of wireless Internet service providers charging for content at different rates and potentially favoring their own services while charging more for access to rivals. The new LTE plans raise the specter of consumers paying more for certain kinds of content and the potential for a fractured Internet experience, where users may not be free to jump easily from one site to another. And it appears poised to test the latest net neutrality rules enacted by the FCC, which created fewer protections for discrimination of mobile content. Free Press called upon the FCC to investigate MetroPCS’s new pricing tiers. MetroPCS spokesperson Drew Crowell said the carrier is not prepared to discuss the Free Press statement or net neutrality implications of its latest service plans.

Two big ownership deals were announced this week. First, Goldman Sachs arranged a $500 million investment in Facebook that values the social networking company at $50 billion. The deal is drawing scrutiny from the Securities and Exchange Commission. Midweek, Qualcomm announced its intention to acquire Wi-Fi silicon vendor Atheros in a deal valued at $3.1 billion. The deal highlights a focus also seen at CES on mobile broadband devices. Just below the radar is the expected approval of the merger of Comcast and NBC Universal. FCC commissioners are trading opinions on what conditions should govern the union and a vote on the merger could come later this month. That's generated lots of meetings between interested parties and FCC staff.

Verizon Lobbying GOP for Telecom Overhaul

Verizon is urging the new Congress not to abandon earlier Democratic plans to update the 1996 Telecommunications Act, a law widely viewed as outdated for today's broadband-driven universe.

"We're encouraging Republicans on the House side to look at overhauling the Communications Act," Verizon's top lobbyist Tom Tauke said at the Consumer Electronics Show. "There's a whole array of issues that arise . . . because of the changes in technology," he said yet "there is no policy in place for the Internet broadband infrastructure." He wants a rewrite to tackle a range of topics, from regulation of Web-based "smart grids" designed to reduce power consumption to privacy protections for digital data stored in the "cloud" of the Internet. He also sees a need for Congress to weigh in on bread and butter telecom matters, including the ongoing debate over restructuring the $7. 3 billion universal service phone subsidy fund for the broadband era. Furthermore, he said lawmakers should strengthen intellectual property protections for high-tech companies and provide more guidance on Internet tax issues. "We have problems that need to be addressed," and need direction on concerns that are "going to be out there," Tauke said.

California Public Utilities Commission could get pro-consumer majority

Gov. Jerry Brown (D-CA) could have a big impact on business and residential energy bills and the California economy by making as many as three appointments this month to the state's top regulatory body, the Public Utilities Commission.

At least two appointments to fill current vacancies in the five-member panel could come as early as Friday and could start to give the PUC its most pro-consumer majority since the days of the energy crisis a decade ago. A third member, Nancy Ryan, must step down Jan. 20 if her appointment last year by then- Gov. Arnold Schwarzenegger to a regular six-year term is not confirmed by the state Senate by then. Schwarzenegger's commissioners largely deregulated the telephone business. All of the half-dozen candidates known to be interested in joining the commission have strong pro-consumer credentials. One, consumer lawyer Michael Florio, has spent the last 32 years representing utility ratepayers at meetings at the PUC's San Francisco headquarters. Catherine Sandoval, a Santa Clara University law professor and telecommunications expert, is also a possible nominee.

EU extends deadline for Intel's McAfee deal

Intel and security specialist McAfee have given commitments to help get European Union approval for the U.S. chipmaker's $7.68 billion takeover, European regulators said. The European Commission, the EU's antitrust watchdog, said that it has extended its deadline for reviewing the deal until Jan. 26 from Jan. 12.

Belo Provided 151 Candidates Free Time

Belo Corp. announced that its stations provided free airtime to 151 congressional and gubernatorial candidates across the U.S. during the 2010 election season through the Company's "It's Your Time" program.

In addition, Belo said it broadcast more than 162 hours of political coverage on its 15 news-producing television stations in the seven weeks leading up to Election Day. From Sept. 19 to Nov. 1, Belo said its television stations aired an average of 72 local and national election-related stories each week. The coverage included 14 debates. Belo rebroadcast an average of 144 stories weekly on the company's six regional and local cable news channels. The company also streamed and archived election-related stories and the debates on its 20 station Web sites through Election Day.

Illinois Schools, Libraries To Get Broadband Boost

Calix has been tapped by Clearwave Communications to boost broadband access to 232 anchor institutions including schools and libraries in Southern Illinois as part of a $45 million project, including a $31.5 million grant from the government's broadband stimulus program, $11.3 million from the state of Illinois, $400,000 in county grants and $2.1 million in private investment. Clearwave and Calix will provide speeds between 10 Mbps and 1 Gbps to those institutions through a mix of platforms, Calix says that, to date, it has partnered with stimulus fund winners on 21 projects representing $270 million in investment combining government grants, loans, and private investment. All the federal government broadband stimulus grant money also required at least a 20% investment by the applicants, though that could come from other grants, like the state and county grant money cited above.

Walden Plans Aggressive Oversight Of FCC

When Republicans selected Rep Greg Walden (R-OR) to head a powerful subcommittee that oversees telecommunications policy, they sent a blunt message about their dislike of the Democratic-controlled Federal Communications Commission. More than any other contender for the job, Chairman Walden has been scathing in his criticism of FCC Chairman Julius Genachowski -- denouncing his policy decisions and even his personnel choices. Walden's rise amounts to a declaration of war against Genachowski's agenda.

What to do and when to tweet: House Republicans get marching orders

In the e-mail from the House Republican Conference, when and what to send out by press release or post to Twitter, Facebook, YouTube, and congressional websites is spelled out in great detail, day by day, Wednesday through Friday. There is a "member checklist" to measure progress at week's end. The e-mail reflects a powerful and superior messaging operation that helped the GOP seize control of the House in 2010.

Skype, LinkedIn, Twitter and Facebook Are 2011's Disrupters

Who will set 2011's standards in NewNet technologies like social media and real-time feeds?

In terms of growing user adoption, revenues and technology innovation and influence, a few types of companies come to mind. First, there are the obvious leaders: Facebook and Twitter. These NewNet behemoths — though it’s hard to call such relatively young companies that — remain two of 2010’s highest-impact players and can't be excluded from any forward-looking discussion of the social media space for 2011.

Do Americans Really Not Support FCC Neutrality Rules?

Shortly after the Federal Communications Commission voted to enact network neutrality regulations, Rasmussen Reports released poll results supposedly showing that only one in five Americans support such rules. But the poll's wording raises doubt about that conclusion.

Consider, researchers posed the following question to 1,000 respondents: Should the Federal Communications Commission regulate the Internet like it does radio and television? Only 21% said yes, while 54% said no and 25% weren't sure. The problem, however, is that the FCC's neutrality regulations aren't comparable to its rules regarding TV or radio licenses. Among the FCC's best known regulations regarding TV and radio are the controversial decency rules, which have resulted in broadcasters facing fines -- or lengthy court battles -- after airing nudity or expletives.

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