June 2011

Remember: We Love This Merger

Reporters on a conference call hosted by the AT&T-backed Internet Innovation Alliance got an earful about how rural America could benefit from more access to high-speed Internet. But representatives from some of the featured groups needed a little help remembering to promote AT&T's proposed merger with T-Mobile as the best way to provide more broadband.

Leaders from diverse groups like the Alabama Rural Health Association and the Center for Business, Education and Arts in Kanab, Utah, described at length how the Internet can improve life in the backwoods of America. But at the end of at least two speeches, IIA's honorary chair, former Rep Rick Boucher had to jump in and remind the speakers to put in a plug for the controversial merger.

21st-Century Communications for our First Responders

With the ongoing rollout of the latest line of commercial wireless standards, there is an opportunity to develop and deploy a nationwide and interoperable wireless broadband network for our first responders. With such a network in place, public safety will be able to welcome commercial developers of smartphones, tablets, and apps to connect to and compete within a unified public safety market. And once developed appropriately, first responders will both be able to benefit from advanced wireless broadband technologies and, eventually, replace their high-cost, legacy communications infrastructure and devices. To facilitate the development and deployment of a nationwide high speed wireless network for public safety, the President’s Wireless Innovation and Infrastructure Initiative will enable public safety agencies to transition away from the traditional, fragmented world of public safety communications to a next generation system. This initiative will provide first responders with a network that offers far greater levels of interoperability and effectiveness than they possess today, ultimately saving billions of dollars by enabling public safety to benefit from the competition and innovation that major commercial enterprises already enjoy.

The benefits include:

A fully interoperable nationwide network:The nationwide network for public safety would provide interoperability for all first responders, preventing tragic failures of communication and coordination, reducing risks for first responders and the public.
Saving resources through a coordinated system for public safety communications: Today’s communication systems are not only outdated compared with more modern networks and devices, but they are split across thousands of Federal, State, and local jurisdictions that each pay maintenance and upkeep. The Department of Homeland Security alone spends around $1 billion on public safety communications and interoperability. A nationwide network will align today’s fragmented system, saving money while bringing capabilities into the 21st Century.
Unlocking the potential of commercial devices and infrastructure for public safety :Traditional public safety systems cost up to 10 times more than the same commercial device. A nationwide network will allow commercial developers of smartphones, tablets, and mobile networks and apps to connect a broad, unified market for public safety communications. According to the Congressional Research Service, participation by commercial carriers could drive down the cost of public safety radios from $4,000-$6,000 per unit, the price today, to $500 (or the cost of a smart phone). A 2010 FCC analysis found that leveraging available commercial systems could save considerably on capital expenditures compared with the existing, fragmented public safety communications infrastructure.
Providing better performance and cost effectiveness through innovation: Participation in a broader market, based on open standards, will also allow public safety to pick and choose the best technology from many more competing firms. This will spur competition and innovation to produce applications that improve safety and situational awareness, identification, and emergency health care.
Enhancing the public safety mission: Developing and deploying a hardened, reliable public safety broadband network will put new and important tools in the hands of first responders. For example, first responders could use smartphones or other mobile devices to capture license plate information, quickly verify fingerprints and identity, link to multiple existing databases instantly, or transmit video and data from the scenes of accidents or emergencies.

For more on the event, see Biden: D Block Will Be Allocated; Emergency Net Funded (B&C)

AT&T CEO says timeline for T-Mobile USA acquisition intact

AT&T Chairman and CEO Randall Stephenson said he couldn't remember any wireless deal over the last five years where regulators didn't require "some form of divestiture" to deal with a market-concentration issue. "I anticipate we'll have some of that here, but I don't have any idea what that will look like," Stephenson said, reiterating prior remarks on the subject.

AT&T's acquisition of T-Mobile has drawn both vocal support and opposition from different quarters, but Stephenson said none of the opposition has been surprising, and that deal timing is on track. "The timeline we still think it's going to be a year, roughly, to get the transaction," meaning one year from the March announcement. Asked about potential staff cuts once AT&T absorbs T-Mobile, Stephenson said there would be a number of "overlap" functions between the two companies, such as finance and marketing. "We have very elegant ways of dealing with this," he said.

Felony Streaming Bill Passes out of Judiciary

The Senate Judiciary Committee approved on a voice vote the Commercial Felony Streaming Act (S 978) with no amendments. The bill clarifies that it is a crime to stream pirated TV shows or movies.

It is the second bill in three weeks the committee has approved that attempts to take a bite out of the business of the online distribution of pirated TV shows and videos -- the committee approved the PROTECT IP Act three weeks ago. S.978 was introduced by Senators Amy Klobuchar (D-MN), John Cornyn (R-TX), and Christopher Coons (D-Delaware) last month. It is already a felony to download or upload that content, so the bill would just extend that to streaming, a recommendation made by White House Intellectual Property Enforcement Coordinator Victoria Espinel.

Level 3 argues to FCC that Global Crossing deal will create a stronger competitor

Level 3 Communications has petitioned to the FCC that its pending acquisition of Global Crossing won't cause any other carriers to raise competition or public interest issues.

In an application sent to the FCC last month seeking approval for its $3 billion acquisition of Global Crossing, Level 3 argued that there's no need to scrutinize the deal or place any conditions on it to be approved. Upon completion, the newly combined company would create an even larger one service provider with network presence in 50 countries and connections to more than 70 countries. Now the FCC has to determine whether the deal will serve the public interest, convenience and necessity. Both service providers argue in the filing that the deal will serve the public interest "by offering customers an expanded suite of services--globally-delivered transport, Internet protocol-based ... data, content delivery, data center, collocation, and voice services--and more extensive geographic reach in North America, Latin America, Europe, and Asia with a combination of intercity and metro networks and undersea cable facilities."

Both parties back Facebook's request for waiver on campaign ads

Both the Republican and Democratic campaign committees have backed Facebook's request for a waiver from a requirement that the site's campaign ads contain a disclaimer stating who paid for them.

In a letter to the Federal Election Commission sent in April, Facebook argued that displaying the disclaimers would be impractical due to the small size of ads on the site. The Republican National Committee, Democratic National Committee, Democratic Congressional Campaign Committee and Democratic Senatorial Committee all wrote the FEC in support of the firm's request.

FCC to Crackdown on Dark Stations

Apparently, Barbara Kreisman, chief of the Federal Communications Commission's Video Services Division of the Media Bureau, said the agency will be less likely to grant extensions allowing television broadcasters to hang on to licenses for stations that are not on the air.

Licensees who are not prepared to be "full-time broadcasters" should get out of the business, she said. Kreisman also warned that the agency will be cracking down on Class A low-power stations that fail to meet their obligation to air at least three hours of children's programming each week. Such stations, she said, risk losing their Class A status and the "extraordinary benefits" that come with it.

Cox Communications Considers Selling 3G Network

Cox Communications, the third-largest US cable-TV operator, is considering selling its wireless network to a large telecommunications company, President Pat Esser said.

Cox will either sell the infrastructure or tear down the network, Esser said. Cox has no plans to upgrade the network, which uses so-called third-generation technology, to support the faster 4G standard, Esser said. Closely-held Cox, based in Atlanta, said last month it would stop building out its own network and would instead rely on a partnership with Sprint to deliver wireless service to customers. The decision is based on Sprint’s speedier 4G network, Esser said, which he said will become the industry standard. Cox is also in talks with Philip Falcone’s LightSquared to use that venture’s network to further boost its wireless coverage, Esser said.

Nokia Devices Infringe IPCom Phone Patent, UK Judge Rules

Nokia Oyj, the world’s biggest maker of mobile phones by volume, lost a UK court bid to invalidate a European patent that Germany’s IPCom GmbH & Co. claims is vital to the Finnish company’s handset sales.

The patent, which covers technology for connecting a handset to a network, is valid and infringed by two Nokia devices, which Judge Christopher Floyd didn't identify in his ruling at the High Court in London. Mark Durrant, a spokesman for Nokia, said the company’s current devices don't infringe the patent. The company will appeal part of judgment, he said. “We are pleased that the U.K. High Court declared that Nokia’s current products do not infringe the patent,” Durrant said. “This means that we can continue selling those products, now with legal certainty.” IPCom rejected Nokia’s interpretation of the ruling, claiming the two infringing devices are still in use by the Finnish company.

Nortel Delays Auction to June 27

Nortel Networks, the bankrupt phone equipment maker, is delaying an auction of its range of patents set for June 20 by one week after seeing a “significant level of interest” in the technology portfolio.

The auction of the 6,000 patents and patent applications will now be held on June 27, the company said. Google, which is looking to acquire patents that could be used for phones that run its Android software, offered $900 million in April in what Nortel said was a starting point for an auction.

Benton

Search