April 2012

Bloomberg files FCC complaint against Comcast

Bloomberg filed a complaint with the Federal Communications Commission accusing Comcast of favoring its own programming. Bloomberg argues Comcast is violating the conditions of its federally approved merger with NBC-Universal by refusing to group Boomberg’s “BTV” network near other news and business/news channel on its cable networks.

Bloomberg's complaint contends that “BTV” has long been ignored by Comcast as the company has revised channel lineups to establish or maintain news neighborhoods. A “news neighborhood” is created when a significant number or percentage of news and/or business channels are placed substantially adjacent to one another in a system's channel lineup. Comcast argues it has not grouped news channels into the same “neighborhoods” since its merger.

Consolidation Foes Use Bloomberg Complaint Against SpectrumCo Deal

Groups opposed to further media consolidation used Bloomberg's charges of Comcast non-compliance, and Federal Communications Commission non-enforcement, of an NBC-Comcast deal condition on news neighborhooding to argue against allowing the MSO and other cable companies to sell their spectrum to Verizon.

On a conference call about Bloomberg's charges, Gigi Sohn, president of Public Knowledge, and Joel Kelsey, policy adviser at Free Press, said that the FCC's failure to decide Bloomberg's complaint 14 months after the deal closed [though only 10 months since the complaint was formally filed] called into question its ability to enforce conditions on that or any other deal. The other deal that is top of mind: Verizon's proposed $3.9 billion purchase of spectrum from SpectrumCo., and the associated cross-marketing deals Sohn described as cable and phone competitors laying down their arms and embracing. She asked whether the FCC could be trusted to prevent those competitors from stifling competition through exclusive agreements to market services and jointly develop technologies to integrate wired and wireless video, voice and data? She said if the FCC's inaction on enforcing the neighborhooding condition is any indication, the answer is "definitely no."

Bloomberg Assesses Comcast's NBCU Deal Compliance

Bloomberg has provided its own assessment of Comcast's compliance with at least one NBCU deal condition. It says Comcast is favoring its own programming, has failed to comply with the news neighborhooding condition, and is avoiding compliance by asserting there are impediments to moving channels. It also says it has evidence of new neighborhoods from which its business news channel has been excluded.

That came in a letter sent to the Federal Communications Commission commenting on Comcast's first annual report on its compliance with conditions in the NBCU merger, which Comcast submitted in February. In that report, Comcast said it had delivered, and in some cases over-delivered, on all its promises. Executive VP David Cohen blogged of the report when it was issued:"[O]ur commitments and the conditions, though extensive, have been incorporated into our business activities and become part of the company's 'DNA.'" Bloomberg saw a break in that DNA chain. It opined in the comments that it has spent more time (14 months) trying unsuccessfully to get Comcast to comply with the neighborhooding condition than it took the FCC to review and approve the deal, and said it has "fresh evidence" that Comcast is not living up to that neighborhooding promise.

Radio Revenues Growing, Propelled By Political Ads

Total radio advertising revenues will grow 3.5% in 2012, according to BIA/Kelsey’s “Investing In Radio Market Report,” thanks, in large part, to intensive political advertising.

BIA/Kelsey also expects strong continued growth in radio’s online revenues. In 2012 BIA/Kelsey see total “over-the-air” local radio station revenues reaching just under $14.6 billion. If accurate, this forecast would be a welcome return to growth after a distinctly mediocre 2011. Total “over-the-air” local radio station revenues barely grew from 2010-2011, edging up 0.4% to $14.1 billion last year. Looking ahead, it predicts total over-the-air revenues will reach $15.2 billion in 2013, $15.8 billion in 2014, $16.3 billion in 2015, and $17 billion in 2016. Radio’s total online revenues increased 15.1% from 2010-2011, reaching $439 million, according to BIA/Kelsey, and the analysts predict they’ll grow another 15% in 2012, to $505 million. They see radio’s online revenues reaching $767 million by 2016, suggesting a cumulative annual growth rate of 11% per year from 2013-2016.

Friends Have More Credibility Than Brands

According to Nielsen’s Latest Global Trust in Advertising Survey, 92% of respondents in 56 different countries said they trusted word-of-mouth recommendation from their friends and family above all other forms of communication.

That’s up 17% since 2007. Consumers are also increasingly likely to trust the voices of strangers over those of a corporation. Online consumer reviews there the second-most trusted form of communication (cited by 70% of consumers, up 15% since 2007). At the same time, trust in paid traditional media (including television, magazine and newspaper ads) has steadily declined since 2009. (Trust in television is down 24%; magazines, down 20%; and newspapers down 25%, according to the survey.) Overall, 47% of consumers worldwide said they still trusted those media, although the drops are substantial.

Some big-six publishers refuse to sign new contracts with Amazon

At least two of the big-six publishers are refusing to sign new annual contracts with Amazon. Though that could end with their “buy” buttons being turned off, it is more likely for now that the feud will result in less promotion of their titles on Amazon’s website. People familiar with the situation confirmed that at least two big-six houses have refused to sign new annual contracts — but I have not yet been able to confirm all six. Amazon is still fulfilling customer orders, these sources said, but is not promoting big-six houses’ books on the site or in marketing materials in ways it once did.

Hillary Clinton likes ‘Texts from Hillary’ Tumblr

“Texts From Hillary” has just added one VIP to its fan base: Secretary of State Hillary Clinton herself.

Adam Smith, who created the Tumblr account that has quickly gone viral with his friend Stacy Lambe – both communications professionals based in Washington, D.C. — told POLITICO soon after meeting the secretary of state that he was “still in shock” about the invitation to the State Department. “It was great. She came out, she was all smiles, told us how much she likes the site and that people have been telling her all about it,” Smith said. “She just thinks it’s great.” Adding even more to Smith and Lambe’s excitement was a submission to “Texts From Hillary” from Clinton herself, featuring pictures of the two men. “I think it’s hysterical,” Smith said. “I think it’s a terrible picture of me so I clearly need to add a little more privacy and security on Facebook!”

Global LTE: Verizon dominates today, but which operators will lead in 2016?

The wireless industry is returning to its roots: The world is coalescing around LTE technology, creating a shared, global standard for the first time since the days of analog.

And the global move toward LTE comes as little surprise, since the technology promises more efficient and faster networks, lower equipment costs through economies of scale, and broad support from suppliers and carriers. Already, as of February, there were 52 fully commercial LTE networks in operation and more than 300 LTE-enabled devices available in the market, according to consulting firm Signals and Systems Telecom. Which operators are on the forefront of deploying the technology? And how many LTE subscribers and devices are currently in the market? Most importantly, where are things heading?

BTOP Project OpenCapeNetwork is On Target for January 2013 Completion

CapeNet has chosen Ciena Corporation and Integration Partners to provide coherent optical transport and Carrier Ethernet solutions for the 350-mile fiber optic OpenCape Network.

The network is currently being constructed in southeastern Massachusetts and on Cape Cod. Ciena’s coherent optical processing lays the foundation to increase network bandwidth from 10G to 100G and beyond. CapeNet is managing construction of the OpenCape Network, which is on target for completion by January, 2013. CapeNet will provide a portfolio of high-speed, business broadband services over the new fiber network. Funded through a Broadband Technology Opportunity Program (BTOP) infrastructure grant as part of the American Recovery and Reinvestment Act , the OpenCape Network will support regional businesses, government, education, libraries, research institutions, hospitals and public safety first responders. On Cape Cod, the network will provide high-speed broadband connectivity to approximately 70 community anchor institutions, to include 30 libraries, five colleges, 15 town network hubs, and six research institutions. Throughout its entire footprint the network offers further opportunities to hundreds of additional anchor institutions and nearly 62,000 businesses. CapeNet LLC is a joint venture between CapeNet Partners, Inc. and Lightbridge Communications.

FTTH Council Releases New Stats, Says Stimulus Projects 38% Complete

The number of North American households connected directly into optical fiber networks grew by 13 percent over the past year, indicating that telecommunications companies of all sizes are continuing to upgrade to next-generation fiber to the home technologies, according to the Fiber-to-the-Home Council Americas.

The Council released figures prepared by the market analyst firm RVA LLC showing that 900,000 households across the U.S., Canada, Mexico and the Caribbean were upgraded to FTTH service since April 2011, as the total number of North American homes with all-fiber connections surged past eight million. The figures showed that FTTH is now being offered to 19.3 million homes on the continent. About 95 percent of FTTH households are in the United States, which began to see a significant expansion of fiber deployment in 2004 when Verizon began upgrading to FTTH in much of its wireline footprint, but deployment in other North American countries is now beginning to rise. Canadian households now represent three percent of FTTH on the continent and the remaining two percent are in Mexico and the Caribbean. The RVA survey also found that, on average, government supported FTTH stimulus projects are now 38 percent complete, with indications that many will start connecting subscribers this year. Environmental reviews and heavy demand for fiber optic cable were cited as reasons for the delays.

Benton

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