August 2012

FCC Likely to Take Up Incentive Auction Plan Next Month

The Federal Communications Commission is likely to take up a proposal at its Sept. 28 open meeting outlining rules for a new set of auctions aimed at enticing broadcasters to give up some of their spectrum for use by wireless carriers.

The FCC appears set to vote on a proposed rulemaking implementing the "incentive auctions" authorized by Congress in legislation signed into law earlier this year. An FCC spokesman would not confirm whether the incentive auction item will be on the agenda for September's meeting, but several industry sources said they expect the commission will take up the issue at the meeting. The auctions would allow TV broadcasters a chance to offer bids on how much they would take to give up their spectrum and get out of the business or to share a channel with another broadcaster. The FCC adopted rules in April that would allow broadcasters to share channels.

Groups Urge FCC to Protect White Spaces

A coalition of public interest groups fears that the Federal Communications Commission’s upcoming incentive auction is threatening to endanger so-called white spaces. The Public Interest Spectrum Coalition is pushing the FCC to ensure that the agency’s desire to move TV broadcasters off their current frequencies and then sell those airwaves to the highest bidder doesn’t lead to less space for unlicensed spectrum uses.

Liberals like Jon Stewart; conservatives pick college football

ESPN's college football, "Antiques Roadshow" on PBS and "Today with Kathy Lee & Hoda" on NBC top the list of favorite TV shows among political conservatives. TV viewers defined by market research group Experian Simmons as "mild Republicans" are partial to the sitcom "Rules of Engagement" on CBS, "Sons of Guns" on Discovery, and "Sons of Anarchy" on FX. "Mild Republicans" were described as "somewhat conservative." But Comedy Central's late night duo of "The Daily Show with Jon Stewart" and "The Colbert Report" with Stephen Colbert are wildly popular among those defined by Experian Simmons as "Super Democrats." This group is described as "somewhat" to "very liberal." The report, "Top TV Programs among Voter Segments," was released this week. Experian Simmons arrived at its findings after polling about 25,000 adults picked at random for its annual survey.

GLAAD's Network Responsibility Report Gives The CW, Showtime High Marks

Showtime received the highest grade from the Gay & Lesbian Alliance Against Defamation’s (GLAAD) sixth annual Network Responsibility Report, with 46% of its programming during the 2011-12 season considered "LBGT-inclusive," a 9% increase from the previous year.

While Showtime came the closest, no network received a grade of "excellent" this year. Leading the broadcast networks was The CW, for the third year in a row, with 29% of its programming LGBT-inclusive, although that was down 4% from last year. ABC improved by 4% to rank second among broadcast with 27%, while Fox dropped to 24%, falling to third. Although NBC improved by 4% to 19%, it wasn't enough to get the network out of fourth. After receiving a passing grade for the first time since 2007 last year, CBS failed to make the grade this year, with only 8% of its programming LGBT-inclusive. It should be noted that NBC and CBS will premiere comedies that feature same-sex relationships next month in The New Normal and Partners, respectively.

FCC Circulates Order Lifting Basic Encryption Ban

According to sources, Federal Communications Commission Chairman Julius Genachowski has circulated an order allowing cable operators to encrypt basic tiers and it is said to incorporate some accommodations for IP-enabled devices -- like Boxee -- offered up by cable operators to help secure passage of the item.

The FCC signaled last fall it wanted to remove the ban, which cable operators had asked it to do. Sources suggest the commissioners, Democratic and Republican, are generally on board with the order, though a vote is not expected until at least next week. According to a source familiar with the order, the FCC did not include a three-year sunset, but instead agreed with the Consumer Electronics Association that it should not be time-limited given that it is a nascent market. The Media Bureau will review the market in two years, though. According to an FCC source, the commission has incorporated the cable proposals into its proposed order, though details were not available. The source said cable ops have already started asking for meetings next week, which means cable ops may not have gotten everything they wanted out of the order, like that absence of a 3-year sunset.

FTC Said Poised To Finish Google Antitrust Probe In Weeks

Apparently, the Federal Trade Commission is pushing to conclude its antitrust investigation of Google in the coming weeks.

The agency’s staff will present its findings to the FTC’s five commissioners by mid-September and probably recommend whether to sue the company for hurting competition through its Internet dominance or suggest a basis for settlement, said the people, who spoke on the condition of anonymity because the progress of the probe is confidential. The FTC is aware of what Google has proposed to its European counterparts. The agency would regard a Google proposal, or even overtures to open talks, as premature until it has decided whether the company has violated the law.

Taxing broadband -- an idea whose time has not come

[Commentary] Don’t like the thought of sending even more of your hard-earned money to the government for corporate welfare? Then take notice: the Federal Communications Commission is considering a bipartisan proposal that would tax your Internet connections and fill the pockets of our nation’s phone companies, even the ones that earn billions in profits while getting their own tax rebate checks from Uncle Sam.

At issue is how to pay for the Universal Service Fund (USF). Our policymakers should think carefully before creating a new broadband tax. The big concern is that because consumer demand is more sensitive to price increases on emerging services like broadband than established ones like telephone service, a broadband tax could actually undermine adoption in low-income and senior populations, the very people most likely to be disconnected. Like the rural electrification efforts during the New Deal, the goals of the USF program are noble; we all benefit when more of our fellow citizens are connected. But the FCC needs to focus on making USF more efficient and accountable before it reaches further into our wallets. At the very least, policymakers need to first study the impact of a broadband tax before foisting it on consumers. Ultimately, if Congress wants to put USF on stable ground, it needs to change the law so the program is funded through general treasury revenues, not these regressive taxes.

[Turner is the research director of Free Press]

Rural Telecom Group Cheers GOP Plank On Broadband

"We applaud Republican leaders for recognizing the importance of broadband connectivity to rural communities, and for supporting the public-private partnerships that provide a positive return to American citizens and are critical to the deployment of broadband-capable networks in hard-to-serve rural areas," National Telecommunications Cooperative Association Vice President of Government Affairs Tom Wacker said. "Our nation can only sustain and build upon this success, however, if these public-private partnerships continue and there is predictable and sufficient universal service support going forward such as this platform contemplates."

States reach $69 million e-book pricing settlement with publishers

E-book-buying consumers in 49 states (all except Minnesota) and five territories are set to receive $69 million as the result of a settlement between the states and HarperCollins, Hachette and Simon & Schuster.

If the settlement is approved, the three publishers, who are also settling with the Department of Justice in the federal antitrust suit, will pay a total of $69 million to consumers who bought agency-priced e-books between April 1, 2010 and May 21, 2012. If the settlement is approved, eligible Connecticut e-book buyers would receive up to $1.26 million in total compensation, for example, while Washington e-book buyers would receive up to $2 million, Maryland e-book buyers would receive up to $1.64 million and Hawaii e-book buyers would receive up to $300,000. In addition, the settling publishers would pay $7.5 million in court fees. How will consumers be paid? Baltimore’s ABC News reports that “in most cases, consumers may choose to receive the value of their restitution by check or by crediting the amount to future purchases of e-books. E-book retailers Amazon, Barnes & Noble, Apple and Kobo have agreed to identify and contact each eligible customer by email. Retailers Google and Sony will also notify affected customers. Sony will inform customers that checks will automatically be issued. Google customers will be directed to submit a claim on a settlement website.” Payments are set to begin 30 days after the settlement’s approval.

Google Books judge rejects delay

The seven year saga over Google’s decision to scan millions of library books without permission will plod forward after a federal judge refused to stay the case pending appeal.

In a short order, Judge Denny Chin rejected Google’s request to suspend the case while it goes before the US Court of Appeals for the Second Circuit. Chin noted that a stay would delay the case “by a year or more” and told Google and the Authors Guild, which is representing writers in a class action, to stick to the current schedule. That schedule calls for them to file arguments ahead of a December court hearing. Chin’s latest ruling creates an unusual situation in which the books case is now before him and the appeals court at the same time. The situation is even more unusual because Judge Chin himself now sits on the appeals court (although he has of course recused himself from hearing the Google appeal).

Benton

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