June 2013

Public Input Sought on Verizon Services Affected by Hurricane Sandy

On June 7, 2013, Verizon filed an application requesting authority to discontinue certain domestic telecommunications services in certain parts of New Jersey and New York affected by Hurricane Sandy. On June 14, 2013, Verizon filed a letter to update the record regarding notice to affected customers. Verizon asserts that new deployment of wireline facilities in the Service Areas would be impractical because the repair or replacement of damaged facilities “would require significant work” and “exacerbate existing infrastructure issues, and would delay the restoration of service for many customers for several months.”

[Comments Due: July 29, 2013. WC Docket No. 13-150. Comp. Pol. File No. 1115.]

Public Input Sought on VZ Special Access Affected by Hurricane Sandy

On May 24, 2013, Verizon filed an application under section 214 of the Communications Act of 1934, to discontinue certain domestic telecommunications services in certain parts of New Jersey and New York affected by Hurricane Sandy.

The application indicates that Verizon requests authority to discontinue three copper-based special access services, Metallic Service, Program Audio Service and Telegraph Grade Service (collectively, Affected Services), to customers in some parts of New Jersey and New York. Verizon explains that Metallic Service uses a metallic channel to transmit signals at low speeds up to 30 baud; Telegraph Grade Service uses a telegraph grade channel to transmit binary signals at rates up to 150 baud; and Program Audio Service provides a channel for the one-way transmission of a complex signal voltage with the option for customers to choose a bandwidth tier of 50 to 15000 Hz, 200 to 3500 Hz, 100 to 5000 Hz, or 50 to 8000 Hz. Verizon asserts that copper wireline facilities used to provide these services in certain parts of New Jersey and New York were destroyed or rendered inoperable by Hurricane Sandy on or after October 29, 2012. Verizon indicates that the facilities are located in New Jersey and New York and are specifically referenced in network change notices that Verizon filed pursuant to its waiver for disaster planning and response on May 10, 2013.

[Comments Due: July 29, 2013. WC Docket No. 13-149 Comp. Pol. File No. 1112.]

FCC Announces the Approval of Google's TV Bands Database System for Operation

The Federal Communications Commission’s Office of Engineering and Technology (OET) announces that it has granted approval for Google to operate its “TV bands database system” to provide service to the public. This database system will support unlicensed radio devices that transmit on unused channels in the spectrum bands used by broadcast television (TV white spaces, or TVWS).

Comcast, Verizon Editorials Distort True Picture of U.S. Internet Service, Experts Say

Recent editorials authored by top Internet executives paint a rosy picture of America's broadband services, but experts say they distort reality and don't offer a full picture about problems with the market.

Verizon CEO Lowell McAdam argued in The New York Times that the U.S. has "gained a global leadership position" in delivering high-speed Internet. Comcast chief executive David Cohen wrote in the Philadelphia Inquirer that America has become "a world leader" in broadband access and speed. But the editorials fail to tell the full story about the state of high-speed Internet in America, industry analysts and consumer advocates said. They said that while broadband service in the U.S. has improved, consumers are still paying more for slower speeds than their counterparts in several countries.

Sascha Meinrath, vice president of the New America Foundation, said the editorials appeared to be "part of a well-orchestrated misinformation campaign" to disguise problems in the U.S. broadband market.

Dave Burstein, editor of the industry blog DSLPrime, said the executives are distorting the true picture by citing statistics that compare the U.S. to the average of all European countries. Burstein said a more accurate comparison should look at the U.S. in relation to individual countries like France and England.

Is America a Leader in Broadband, or a Straggler?

[Commentary] In response to a recent New York Times op-ed by Lowell C. McAdam, chairman of Verizon, Nelson writes, “there is a glaring failure amid the success: lack of broadband availability in rural areas, where Verizon and its cable counterparts have chosen not to invest in the infrastructure necessary to deliver the 100 megabits per second speed Mr. McAdam cites as available to over 80 percent of American households.” Nelson says cooperatives and municipalities need two things to help spread broadband deployment: government financial support and forbearance by telecommunications and cable companies not to seek to block what they are not going to build.

Eger writes that the McAdam op-ed is “yet another specious argument in favor of the existing loosely regulated monopoly system of Internet service.” He asks, “When will we wake up and recognize that a new economy dependent on broadband infrastructure is key to our success, indeed survival, in the world? Broadband is a public service that every individual and organization should have, and the United States needs to regulate this service as a public utility, not leave it to the so-called free marketplace.”

[Nelson is a founding member of WiredWest, a broadband cooperative of 42 towns in western Massachusetts. Eger is a professor of communications and public policy at San Diego State University, a former legal assistant to the Federal Communications Commission chairman (1970-73) and director of the White House Office of Telecommunications Policy (1974-76).]

US Broadband Critics Focus on Faulty Comparisons, Miss the Big Picture

[Commentary] Unfortunately, there’s been a long-standing campaign by a few academics & advocates to talk down America’s broadband market, while holding up France and Hong Kong as broadband Nirvanas for innovation and consumer pricing. A growing body of evidence, however, shows that the U.S. is no broadband backwater.

Akamai data puts the U.S. at No. 1 when considering “other countries with either a similar population or land mass.” That point is key: it’s impossible to make valid comparisons between a continent-sized landmass (that includes the Great Plains, Alaska and western Texas) and largely urbanized countries that look more like the Northeastern U.S. Corridor. Comparing California to Hong Kong is simply not useful. Looking at individual states, we can see that the best U.S. states beat out most of the rest of the world, both in average speeds, and peak connection speeds. Broadband critics typically ignore the mobile industry, presumably because its wild growth over the last five years doesn’t fit their chosen narrative. Finally, on broadband pricing, the Information Technology and Innovation Foundation’s study concludes that “American broadband is affordable and in part reflects the significant private investment in American infrastructure. The OECD data indicates that entry-level broadband services are available to U.S. consumers at the second-lowest cost in the OECD.

Why Is Apple Still Wrangling Over E-Books?

[Commentary] Why is Apple fighting the U.S. Department of Justice when the book publishers the agency also sued chose to settle? The answer lies in part in what's at stake.

Apple says it is fighting the high-profile case, now in the hands of a federal judge, on the principle it did nothing wrong. But the company is defending a lot more than its tiny digital-books business. A win would help Apple maintain negotiating clout with media companies, which are searching for new ways to make money in markets shifting online. A loss could hamper its ability to compete with rivals like Amazon.com to land increasingly important media deals on favorable terms. Apple settled an antitrust case with the European Commission over e-book pricing last year. The EU pact isn't believed to open the company to private lawsuits, while a judgment against the company in the U.S. could. A lawyer for Apple argued during the trial that a ruling against the company would "send shudders through the business community" by imposing a chilling effect on how companies negotiate.

Facebook Restricts Ads on Controversial Sites

In the wake of protests over violent content on its site Facebook announced that it will remove ads on pages or groups that contain “any violent, graphic or sexual content.” Starting July 1, Facebook will review pages for controversial content. While this content may not technically violate Facebook’s community standards policy, if the company marks it as offensive, it will not serve ads from brands on the right-hand column of these pages.

Previously, Facebook said, advertisers selling “adult” products were able to buy ads on these pages. “While we already have rigorous review and removal policies for content against our terms, we recognize we need to do more to prevent situations where ads are displayed alongside controversial Pages and Groups,” the company said.

News Corp. divides into two companies; 21st Century Fox is born

Rupert Murdoch's sprawling, $75-billion global empire has broken into two separate companies: 21st Century Fox and a much smaller News Corp.

The company finalized the transaction that had been in the works for more than a year. Beginning July 1, shares of the two companies, both controlled by Murdoch and his family, will trade separately on the NASDAQ stock exchange. The 82-year-old media baron has spent the last 60 years building an enormous empire from a single newspaper in his native Australia. Murdoch will serve as executive chairman of both News Corp. and 21st Century Fox. He also will be chief executive of Fox, the larger of the two entities. 21st Century Fox will boast assets that have generated three-quarters of the consolidated company's revenue and nearly all of its profits: the 20th Century Fox movie and television studios, Fox News Channel, Fox Sports, FX, National Geographic and the Fox broadcast network. The publishing group will take the name News Corp. It will include such newspapers as the Wall Street Journal, Times of London, New York Post, the Australian, the HarperCollins book publishing house, several Australian television properties and a nascent educational materials business called Amplify.

What's the Matter With TV News?

Forty to 50 million people -- more than the combined populations of New York State and Texas -- are desperate for in-depth and original television journalism, said Ehab Al Shihabi, executive director of international operations for Al Jazeera America. And that's why Al Jazeera America, the new channel he's launching, is going to be a hit in the United States, he claimed at the Aspen Ideas Festival. The rest of the panel wasn't so confident.

In fact, some were downright hostile to the idea that serious news has a big and untapped audience. Lawrence O'Donnell, a primetime host on MSNBC, which has moved away from original reporting toward an op-ed-TV model, objected strongly to the idea that there was a 50-million-person audience for a serious news channel that didn't already exist. "I think if you did a survey of the 300 million Americans, I think something like 50 million would tell you they want to read the complete works of William Shakespeare. They won't," he said, even if he personally placed the Bard's complete works on 50 million living room tables. "[Serious television] is being offered to them every night on PBS," he added. "NewsHour is doing it every night. [Every discussion about serious television] always forgets that PBS exists. We're running the market test every single night."