February 2012

FCC Seeks To Reform And Modernize Cellular Licensing Requirements

The Federal Communications Commission (FCC) took steps to promote government efficiency and eliminate burdensome regulatory processes by providing licensees with greater flexibility to provide advanced communications service in areas currently unlicensed in the 800 MHz Cellular Service (Cellular Service).

The FCC issued a Notice of Proposed Rulemaking (NPRM) and adopted an Order proposing to revise the licensing model for the Cellular Service from a site-based to a geographically-based approach. This proposal would first reduce regulatory requirements in the most licensed markets while preserving the current model for a period to foster the provision of service in less licensed markets. The proposal for a geographically-based model would bring the Cellular Service into harmony with more flexible licensing schemes used successfully by other similar mobile services, such as PCS, the 700 MHz Service, and AWS. This proposal would eliminate burdensome application filings for even minor technical system changes and would allow for greater licensee ability to adapt to technological and marketplace changes.

E-rate Deployed Ubiquitously 2011 Pilot Program

The Federal Communications Commission adopted an order granting a request for waiver filed by the e-Bookroom Initiative (“e-BI”) concerning the Learning On-The-Go (also known as the E-rate Deployed Ubiquitously (EDU) 2011) Pilot Program.

The FCC grants e-BI’s request to provide an extension of the time for pilot participants to meet certain E-rate procedural deadlines to facilitate the ongoing administration and utilization of the funds committed to the pilot participants for funding year 2011. The FCC waives its rules and directs the Universal Service Administrative Company (USAC) to extend any of its relevant procedural deadlines for those pilot participants that had not begun their pilot projects before October 1, 2011. But the FCC denies e-BI’s request to provide additional support to the pilot participants beyond the funds that have already been committed to each of the pilot projects.

International Bureau Invites Comment On NTIA Letter Regarding LightSquared Conditional Waiver

This Public Notice seeks comment on a letter submitted by the National Telecommunications and Information Administration (NTIA) on February 14, 2012, concerning the results of additional government testing of the potential interference effects of communications equipment that LightSquared seeks authority to operate.

The International Bureau (Bureau) also identifies specific actions that may be taken in light of the NTIA Letter and the full record developed to date in this proceeding. NTIA states that it has monitored the testing done through the Interference Resolution Process and has coordinated additional testing of LightSquared’s equipment by other federal agencies, to assess the interference effects of such equipment on GPS receivers and devices. Based on this testing, NTIA has concluded that LightSquared’s proposed mobile broadband network will impact GPS services and there currently is no practical way to mitigate the potential harmful interference from LightSquared’s planned terrestrial operations in the 1525-1559 MHz band.18 NTIA “conclude[s] at this time that there are no mitigation strategies that both solve the interference issues and provide LightSquared with an adequate commercial network deployment.”

The FCC invites interested parties to file comments in response to the NTIA’s tentative conclusions, no later than March 1, 2012.

FCC Adopts Rules to Strengthen Consumer Protections Against Unwanted Telemarketing "Robocalls" to Wireline and Wireless Phones

To further protect consumers from unwanted autodialed or prerecorded calls, often referred to as “robocalls,” the Federal Communications Commission approved changes to its telemarketing rules.

Unwanted telemarketing calls and texts were consistently in the top three consumer complaint categories at the FCC in 2011. Robocalls invade consumers’ privacy, and can, in the case of calls to wireless numbers, use up their minutes. The order helps put an end to these intrusions by empowering consumers with increased rights under the FCC’s telemarketing rules. The new rules reduce regulatory uncertainty with minimal burden on industry and maximize consistency with those of the Federal Trade Commission.

Specifically, the rules protect consumers by:

  • Requiring telemarketers to obtain prior express written consent from them, including by electronic means such as a website form, before placing a robocall to a consumer;
  • Eliminating the “established business relationship” exemption to the requirement that telemarketing robocalls to residential wireline phones occur only with prior express consent from the consumer;
  • Requiring telemarketers to provide an automated, interactive “opt-out” mechanism during each robocall so that consumers can immediately tell the telemarketer to stop calling; and,
  • Strictly limiting the number of abandoned or “dead air” calls that telemarketers can make within each calling campaign.

SNL Kagan: Broadcasters Retransmission Revenues Rose 47% in 3Q

Broadcasters' television retransmission revenue rose 47% in the third quarter of 2011 from the prior year, reaching about 33 cents per subscriber per month, according to a new study from SNL Kagan.

Getting the biggest fees from multichannel providers was Univision, which took in 61 cents per sub, according to SNL Kagan, which looked at 16 TV stations owners. Univision generated retrans revenue of $81 million in the quarter, SNL Kagan estimates. Sinclair Broadcast Group had an estimated $35.9 million in retrans revenue in the third quarter, or 49 cents per sub. Newport Television and LIN TV took in 48 cents per sub and CBS received about 45 cents per sub, generating an estimated total of $52.3 million during the quarter. Overall, the 16 station groups in the study generated $269.4 million in retrans revenue during the quarter. SNL Kagan expects that the broadcast industry will earn $1.45 billion in retrans payments during all of 2011.

Lawmakers On LightSquared: Maybe Another Time

"While I'm disappointed that the interference testing has shown LightSquared will not be able to move forward, we still have to continue to look for new and creative ways to drive competition and expand wireless broadband deployment across the country," said Rep Anna Eshoo (D-CA), the ranking member on the House Energy and Commerce Communications and Technology Subcommittee.

"Our position has always been that LightSquared’s plans should not be approved unless tests proved no interference for GPS devices," said House Small Business Committee Chairman Sam Graves (R-MO). "I hope that technology continues to be developed in a way that addresses the GPS interference concern on behalf of the many small businesses that rely on them, and that we can find a way to have a win-win on this issue."

“It is very unfortunate that the engineering studies did not find a clear way forward to bring much needed spectrum to the public on a wholesale basis," said Harold Feld, legal director of Public Knowledge. "While it is possible that a way forward may emerge from the comments in response to the FCC's public notice, it would appear that LightSquared will not fill this need for wholesale access any time soon."

TechNet Executives Pushing Congress for Innovation Policies

TechNet has flown in executives from several tech companies to lobby Congress to act on the group's top priorities, most of which are focused on boosting U.S innovation and competitiveness.

Among those in town for TechNet's 10th annual Washington visit include Cisco Chairman and CEO John Chambers, Sybase Chairman and CEO John Chen, and eHealth Chairman and CEO Gary Lauer. More than 40 TechNet executives will be meeting with lawmakers from both parties to push for action on investment in research and development; clean energy technologies; tax and immigration reform; expanding free trade; and extending the research and development tax credit, which expired at the end of 2011. The group also will be pushing lawmakers to pass legislation to free up more spectrum for wireless broadband technologies and to continue to oppose anti-piracy legislation that critics say could harm the integrity of the Internet and innovation.

So Much More Than An Ad

The ad for Chipotle Mexican Grill is one of the most remarkable and striking pieces of work to have graced our screens in a long time. If you haven’t seen the ad yet, I highly recommend you take the time to do so. It excels on a number of levels.

  • The Creative -- from the haunting rendition of Coldplay’s “The Scientist” to the character and quality of the animation, it is the kind of work that takes endless ingenuity and real craft to pull off. And that’s after you’ve got the thing that all good ads need: a great idea.
  • Media Placement -- with a soundtrack like that where else would you want to debut the ad? Plus, the younger-skewing audience may be more likely to respond to the message.
  • The Message -- Chipotle has long since positioned itself as the fast-food place with a difference. None of the conventional aspects of the fast-food experience seen as negatives in many people’s eyes are here. The company sources its beef from cattle that have never been treated with antibiotics or hormones. The cattle providing the milk (and cheese) for the chain have only eaten food devoid of animal matter. It supports a number of sustainable agriculture initiatives and recently sponsored TEDx Manhattan -- Changing The Way We Eat conference. Bottom line is that Chipotle walks the talk we heard in the ad.
  • Social Media Integration --Frankly David Berkowitz is among those better positioned to comment on this than I, but the fact I discovered the ad in my Facebook news feed and then linked through to the full video on the Chipotle web site says something. I’ve subsequently watched the fascinating “making of” video. All in all, out of pure interest driven by the creative and the message I spent about 20 minutes or so interacting with content core to the brands values that night.

Digital Viewing Of Traditional TV Rises

Digital viewing of traditional TV shows is rising.

Video plays on tablets, mobile devices and connected TVs nearly doubled in the fourth quarter 2011 over third quarter. At the same time, video plays on Google TV grew 91% in fourth quarter 2011 over previous periods, per Ooyala, a digital video technology and analytics company. All this is good news for new video and TV-related businesses.

YouTube’s Missing Monetization Makes Its Internet TV Prospects Patchy

YouTube’s fortunes in the emerging internet TV space may be hampered because it cannot yet help partners monetize their content on the new platform.

YouTube now has an app on several connected TVs from manufacturers like Samsung and LG, but some owners grumble that it does not include videos found on the website, like official music videos. That means Vevo. The label-owned music video wholesaler syndicates to YouTube on the web but is absent from YouTube’s connected TV apps. All the while, though it is traditionally somewhat anonymous on youtube.com, Vevo is building up its own consumer-facing brand identity and is rolling out on to internet TV platforms.