June 2013

US allows export of communication devices, software, and services to Iran

The US government has lifted sanctions on the export of a variety of consumer communications devices, software, and services including mobile phones to Iran ahead of elections in that country.

The US Department of the Treasury, in consultation with the U.S. Department of State, has issued a license authorizing the export to Iran of certain personal communications services, software, and hardware. Exports of the devices to Iran had been blocked since the 1990s, but the U.S. government now holds that the new license aims to empower the Iranian people as their government intensifies its efforts to stifle their access to information. The export of the equipment to the Iranian government or to any individual or entity on a Specially Designated Nationals list continued to be prohibited. "As the Iranian government attempts to silence its people by cutting off their communication with each other and the rest of the world, the United States will continue to take action to help the Iranian people exercise their universal human rights, including the right to freedom of expression," according to a statement by the two U.S. departments. The license, which came into effect May 30, allows for the export and re-export from the U.S. of fee-based services, software and hardware required for personal communications over the Internet, including instant messaging, email, chat, social networking, sharing of photos and movies, web browsing and blogging.

Broadcast, Broadband and Bundle Bloat

Consumers aren’t the only ones who are force-fed bundles of pay-TV channels they don’t want just to get the ones they are interested in. Cable providers are in the exact same position.

Consider, for example, the recent dispute between Cablevision and Viacom. Cablevision wanted to carry Viacom’s popular “must-have” channels aimed at children (Nickelodeon), young adults (MTV), African-American audiences (BET) and comedy audiences (Comedy Central). Viacom told Cablevision that to get these channels it also had to purchase and place on its entry-level tier more than a dozen unpopular channels (such as CMT Pure Country, TeenNick, and VH1 Soul). Viacom doesn’t care that VH1 Soul’s ratings declined by 75 percent from 2010–2012. Viacom simply told Cablevision that if it wanted only the popular channels, it could have them — for one billion dollars more than the price of the entire bundle. The cable industry calls this practice “wholesale bundling.” But antitrust law has another term for it: illegal product tying. It’s easy to see why large programmers like Viacom are so enamored of the wholesale bundling model. Because its fees are not directly related to the size of each channel’s viewing audience, programmers can earn healthy profit margins simply by repackaging low-cost content and forcing distributors to carry these low-demand channels on their entry-level tier.