June 2012

Web Video Companies Crank Up Lobbying

Online video companies are ramping up their lobbying of lawmakers and regulators, but their adversaries -- traditional cable-TV companies and Internet-service providers -- have far deeper pockets on K Street. Both Netflix and Amazon are on pace to sharply increase the amount of money they spend on lobbying this year.

They have added veteran Washington hands to help them in the capital, where Comcast and other Internet-service providers already spend millions of dollars a year. The stakes are huge, as online video becomes a bigger draw to Americans -- more of whom are questioning whether they will continue to need regular cable-TV service. While not all of their lobbying efforts involve online video, Netflix and other companies are pressing regulators on issues such as how some Internet-service providers impose data caps, or limits on how much customers can download. Netflix and others have spoken with the Justice Department.

Cable Trouble for Netflix

Netflix has made no secret of its stance that cable companies should be prevented from using their broadband networks to discriminate against competitors. But, as Sanford Bernstein points out, now that the government is looking into the issue, the message to Netflix may be: careful what you wish for.

The Justice Department is reportedly investigating whether cable companies are engaging in anticompetitive behavior in their treatment of Netflix and other online-video providers. One issue is the use of caps on the amount of bandwidth allotted to Internet subscribers. But for Netflix, an investigation could end up hurting more than it helps by hastening the cable industry's shift to usage-based pricing for broadband. Analysts say moving to usage-based pricing, a system under which heavy users pay more for data, is one way for cable and phone companies to alleviate government concern about caps. The Federal Communications Commission has already explicitly supported usage-based pricing, arguably lending it credence in the eyes of the Justice Department. But usage-based pricing poses a threat to Netflix because of its reliance on broadband providers to transmit its video-streaming product. If subscribers have to pay more to stream large amounts of data, they might be less inclined to use Netflix.

Companies embrace mobile computing

AT&T is seeing a surge of interest in mobile devices and applications among its corporate customers and reported “an explosion in use” of PC tablets among companies over the past year.

The company, which is hosting an analyst event this week at its Network Operations Center in Bedminster, New Jersey, said the number of companies using tablets grew by 194 percent between the first quarter of 2011 and the first quarter this year. In addition AT&T said more than 27,000 business customers have now adopted mobile applications and that it closes five or more mobile device management deals with companies on average every business day. “These trends, combined with the continuing need for companies to reduce complexity and improve their productivity, are driving strong demand for solutions that AT&T is uniquely positioned to provide,” said Andy Geisse, senior executive vice-president of AT&T Business and Home Solutions.

Beware of Verizon's new service plans

[Commentary] The new Share Everything plans Verizon Wireless announced have a catchy name and a cool concept -- but they're a crummy deal for many consumers.

That's because many users will end up paying more for their service under the new plans. Hardest hit will be some of those who put the least burdens on Verizon's network -- those who do little talking, texting or Web surfing on their phones. But more active users may see their bills go up as well. Overall, the move appears to be a price hike tarted up to look consumer friendly. Let's say that you have a smartphone that you use lightly and have signed up for one of Verizon's lower cost plans. You might spend $70 a month if you don't do any messaging or $80 a month if you send or receive up to 1,000 messages. Under the Share Everything plans, you'd be spending at least $90 -- and that's for only 1 gigabyte of data, compared to 2 gigabytes under the old rates. If you wanted the same 2 gigabytes of data, you'd be spending $100.

Dems blame GOP for stalling cybersecurity bill

No cybersecurity compromise is jelling in the Senate — and the finger-pointing has begun.

The window for legislative action this year is rapidly closing. Democrats, faced with the real possibility that the Senate won’t be able to pass a bill, are openly blaming Republicans. Majority Leader Harry Reid (D-NV) accused GOP lawmakers of failing to work with Democrats on critical infrastructure provisions in a bill by Sen. Joe Lieberman (I-CT). Leader Reid lamented that “some key Republicans continue to argue we should do nothing to secure critical infrastructure” despite warnings by intelligence experts. “It is time for [Republicans] to participate productively in the conversation instead of just criticizing the current approach,” Majority Leader Reid said. Senate Commerce Committee Chairman Jay Rockefeller (D-WV) echoed Reid. “It’s just very simple. The entire government, the entire national security establishment, the entire military establishment, they all want it and they all want a bill, which is virtually prepared except for, will the Republicans accept the covered critical infrastructure?” Chairman Rockefeller said. “If you don’t, then you’re excluding all the grids, all the water systems, all the dam systems, all the hospital systems and all the air-traffic-control systems.”

Sen Lieberman warns July is deadline for cybersecurity bill

Sen. Joe Lieberman (I-CT) urged the Senate to pass his cybersecurity bill, warning that July could be the final opportunity to address the issue.

He predicted that the lame-duck session following the election will be consumed by budget and tax issues. "The truth is, if we don't take it up in July and see if we've got the votes … we're not going to be able to pass this legislation in a way that's timely and allows us to go to conference, reach an agreement and send the bill to the president," Sen Lieberman said. Sen Lieberman congratulated the House for taking "some initial good steps," but argued that the critical infrastructure protections must be included in the legislation that ultimately becomes law. He thanked Senate Majority Leader Harry Reid (D-NV), who gave his own speech on the Senate floor stressing his support for Lieberman's bill. Sen Lieberman said that Leader Reid has assured him the bill will come up for a vote in July, and he predicted that the bill will have the votes to clear the chamber. Sen Lieberman has said the cybersecurity bill is his top legislative priority before he retires at the end of the year.

NAB: Retransmission, Exclusivity Must Apply To OVDs

The National Association of Broadcasters has doubled down on its assertion that must carry-retransmission consent regime and program exclusivity rules must be applied to over-the-top video providers. That came in reply comments to the Federal Communications Commission's inquiry into how it should interpret the terms MVPD and channel in the program access complaint by over-the-top provider Sky Angel. At issue is whether over-the-top video providers that ride the transmission path of others are subject to the same program carriage rules and obligations as traditional MVPDs who provide programming over their own transmission paths.

Apple fails to fend off mobile tracking lawsuit

Apple must defend against a lawsuit accusing it of letting advertisers secretly track the activity of millions of mobile device users, a federal judge ruled, but Google and several other defendants were dismissed from the case.

Owners of iPhones, iPads and iPod Touches may pursue claims against Apple under two California consumer protection laws, U.S. District Judge Lucy Koh in San Jose, California, said. Judge Koh oversees nationwide litigation combining 19 lawsuits. But the judge threw out claims that Apple violated customers' privacy rights, and also threw out claims under federal laws addressing computer fraud, wiretaps, and records disclosure. Other defendants dismissed from the case include AdMarval, Admob, Flurry, and Medialets.

FCC Will Consider Ways to Enhance Equipment Authorization Program

The Federal Communications Commission took action to ensure that its equipment authorization program will continue to operate smoothly in the face of an ever increasing number of applicants and applications for equipment authorization for wireless devices.

Devices range from cell phones and police and marine radios, to computers and microtransmitters placed in computers, to Wi-Fi and Bluetooth devices, to implanted wireless medical devices, to remote control devices, to security tags, to inventory trackers, and many more in variety and number. Applicants range from well-known companies like Gibson Guitar, Texas Instruments and Ford Motor Company, to seemingly unlikely participants such as Oreck, Adidas, and the Nebraska Furniture Mart, as well as numerous makers – large and small – of individual electronics components that are included in larger devices. The equipment authorization program is a key component of FCC’s spectrum and policy agenda. It encourages innovation in equipment design, ensures efficient use of the radio spectrum, and implements policy objectives such as the hearing aid compatibility of handsets.

The FCC also announced that it plans to consider ways to improve its equipment authorization program, including clarifying or modifying the administrative requirements and the responsibilities of the Telecommunications Certification Bodies that perform equipment certification.

House Democrats Urge Scrutiny of Verizon-Cable Deals

A group of House Democrats called on federal regulators to closely scrutinize Verizon Wireless' bid to buy spectrum from and enter into marketing agreements with a group of cable firms, saying the deals could threaten the competitive goals of the 1996 Telecommunications Act.

"It was the intent of Congress in the act to promote competition between telephone and cable companies," according to a letter signed by Rep. Ed Markey (D-MA), a senior member of the House Commerce Committee, Judiciary ranking member John Conyers (D-MI), and five other House Democrats. The letter was sent to Federal Communications Commission Chairman Julius Genachowski and Attorney General Eric Holder. "Following the enactment of the act, a new boom of innovation and competition was unleashed, resulting in hundreds of billions of dollars of new private sector investment thanks to broadband revolution initiated by the statue. To fulfill the purpose and promise of the act, it is essential that competition and consumer choice continue to animate our nation's communications policies," the lawmakers added. The lawmakers, however, did not call for the deals to be blocked and instead called on the FCC and Justice Department to examine how the deals will impact telecommunications competition.

Benton

Search