April 2012

In the “I Dare You” Game of USF Waivers, RLECs Will Win or Fold

Out of all of the frustrating aspects of the USF/ICC Transformation Order and FNPRM, the waiver process ranks high on the list, yet it gets less attention than issues like regression analysis and bill-and-keep.

Why is it so frustrating? Well, a waiver essentially costs small companies tens of thousands of dollars to prepare and file, and there is no guarantee that the FCC will grant the requested relief. It is a very expensive and cumbersome undertaking to tell the FCC that your company is facing financial insolvency because of the FCC’s actions. Nevertheless, waiver momentum has picked up a bit over the last few weeks with new filings, letters of intent, and even support from friends in high places—Congress—for one waiver. FCC representatives have often said if a company doesn’t like the rules, it can file a waiver; but this is easier said than done. John Staurulakis, Inc. vice president John Kuykendall described the waiver process “as though the Wireline Bureau is taking an ‘I dare you’ approach to filing waivers. On one hand, the Bureau is saying that the USF/ICC Order must not be that bad since only a few carriers have sought waivers to be exempted from the reforms. On the other hand, the Bureau knows that once a company files a waiver, the petition will then be subjected to a ‘rigorous, thorough and searching review comparable to a total earnings review’ and that the bar which must be attained for the waiver to be granted is so high that few, if any, carriers can meet it.”

Analyst: 'The entire cellphone and computing ecosystem will be shaken to the ground'

ACI Research's Edward Zabitsky, who famously advised clients to short Apple when it was selling for $450 a share, has seen the future and it is Microsoft's Windows 8.

"If there is one company in the world that understands how to slay a dominant operating system, it is Microsoft," he begins his latest missive, a note subtitled "The Wounded Bear From Redmond Awakens." "Enter Microsoft. Windows 8 is Microsoft`s first genuine paradigm shift since Windows 95. It completely embraces web apps based upon technologies like HTML5, Javascript, CSS3, WebGL, et al. Web apps will cause a violently disruptive change for Microsoft and for the entire industry. Make no mistake -- this is not just about Apple. The entire cellphone and computing ecosystem will be shaken to the ground."

MPAA's former tech officer now argues against SOPA, PIPA

The Motion Picture Association of America's former chief technology policy officer is speaking out against anti-piracy bills that were a top priority for his former employer.

Paul Brigner, who resigned from his job last month as senior vice president for the MPAA, said he has changed his tune on the much-maligned Stop Online Piracy Act (SOPA) and the Protection Intellectual Property Act (PIPA). "I firmly believe that we should not be legislating technological mandates to protect copyright -- including SOPA and Protect IP,'' Brigner said. He said that his year-long experience at the MPAA caused him to change his views on the anti-piracy bills, concluding that they would not work. "Did my position on this issue evolve over the last 12 months? I'm not ashamed to admit that it certainly did," Brigner wrote. "The more I became educated on the realities of these issues, the more I came to the realization that a mandated technical solution just isn't mutually compatible with the health of the Internet."

Spanish-language stations left out of campaign spending rule

Although Hispanic voters will play a big part in the 2012 election, Spanish-language stations have been left out of a proposed rule from the Federal Communications Commission requiring big city television stations to put detailed information online about what candidates are spending on the upcoming presidential race.

Later this month the FCC will vote on whether television stations should be required to publish information online about how much politicians are spending on TV advertising. Such information is already available to the public, but anyone wanting to see it must visit a TV station and make a formal request. FCC Chairman Julius Genachowski has called making political advertising information readily available a common-sense update to what is already the law of the land. Initially though, only stations that are affiliates of ABC, CBS, NBC and Fox in top-50 markets will be required to put political spending information on the Web. The rule tweak, which is expected to pass, would go into effect by late summer or early fall at the latest, still in time for the 2012 general election. Other stations in smaller markets around the country would have up to two years to do so after the rule change goes into effect.

GOP lawmakers seeking cost of LightSquared inquiry to taxpayers

Sen. Chuck Grassley (R-Iowa) and Rep. Michael Turner (R-OH) have asked Larry Strickling, the head of the National Telecommunication and Information Administration (NTIA), how much money the government spent testing LightSquared's network, how many employees worked on the project and whether the Administration will ask for reimbursement. The lawmakers noted that LightSquared's chief financial backer, billionaire Philip Falcone, is considering bankruptcy for the company. "If LightSquared does indeed declare bankruptcy, our concern is that the federal government will be unable to recoup the taxpayer dollars it has expended funding testing on LightSquared's network," the Republicans wrote.

FCC Seeks Comment on Companies Seeking to be Designated as Low-Income Eligible Telecom Carrier

The Federal Communications Commission’s Wireline Competition Bureau seeks comment on petitions filed by T-Mobile USA, kajeet, Inc., TAG Mobile, Telrite Corporation, and Global Connection, for limited designation as eligible telecommunications carriers (ETC) for the provision of Lifeline service.

kajeet, TAG, Telrite and Global Connection each seek designation as an ETC for the limited purpose of offering Lifeline service in Alabama, Connecticut, Delaware, District of Columbia, Florida, New Hampshire, New York, North Carolina, Tennessee and Virginia. T-Mobile seeks ETC designation for the limited purpose of offering Lifeline service in Alabama, Connecticut, Delaware, District of Columbia, Florida, New Hampshire, New York, Tennessee and Virginia.

Comments are due May 10, 2012; Reply Comments are due May 25, 2012.

Computer and Internet Use Supplement to the Census Bureau’s Current Population Survey

The National Telecommunications and Information Administration (NTIA) proposes to add 12 questions to the US Census Bureau’s October 2012 Current Population Survey (CPS) in order to gather reliable data on broadband (also known as high-speed Internet) use by US households.

President Obama has established a national goal of universal, affordable broadband access for all Americans. To that end, the Administration is working with Congress, the Federal Communications Commission (FCC), and other stakeholders to develop and advance economic and regulatory policies that foster broadband deployment and adoption. Collecting current, systematic, and comprehensive information on broadband use and non-use by US households is critical to allow policymakers not only to gauge progress made to date, but also to identify problem areas with a specificity that permits carefully targeted and cost-effective responses.

Comments are due June 4, 2012.

Comcast has some Xplaining to do

[Commentary] What do you get when you cross Xbox with Xfinity? A double-X rating for obscene power grabs in the video market? Or at least a double-extra-large helping of questions about the potential impact on consumers? Whatever the answer, it's easy to see why Comcast's recent data-cap announcement set off a flurry of Internet chatter.

The Xfinity Xbox exemption casts real doubt on the justification for monthly caps. Is Comcast using its data caps in ways that harm competition against its traditional cable TV service? Or is Comcast just unable, at the end of the day, to justify its data caps as any sort of legitimate and effective congestion-management tool? These are exactly the types of questions that lawmakers and consumer protection agencies need to ask before accepting rapidly changing spin from cable companies and their trade associations.

Google launches the “power of the internet” campaign

Google announced a new project – Take Action – that asks you to tell your story about the Internet and share it with the social web. Its whole motive: build grassroots momentum and keep the politicians on their proverbial back-foot.

Why you shouldn’t just blame your cable company for that $200 bill

Like the older sibling who seems to be blamed for everything, cable, satellite and telco TV providers caught scrutiny after research firm the NPD Group released a report forecasting that the average multi-channel subscription bill will spiral to around $200 by the end of the decade. Aren’t these guys smart enough to know that they’re forcing consumers to consider internet-based on-demand programming options?

Well, they’re not necessarily driving the bus in terms of spiraling subscription costs, the program suppliers are. According to a Nomura Equity Research, fees paid by cable, satellite and telco distributors to program suppliers increased 8.2 percent last year to around $33.5 billion. And they’re likely to increase around 8 percent for each of the next several years going forward, surpassing $39 billion by 2013.

Benton

Search