March 2014

Comcast's Cohen Calls Hastings Peering Arguments 'Hogwash'

Comcast executive VP David Cohen says that Netflix CEO Reed Hasting's criticisms of the companies' recent peering deal are "essentially hogwash."

In an interview for C-SPAN's The Communicators, Cohen said that when the history of that deal is written, it will say that Netflix was the motivated force behind it, and that Netflix essentially wanted to cut out the wholesalers and deal directly with Comcast. "I have a huge amount of respect for him," Cohen said of Hastings. "He's built an amazing business. He's a great partner of Comcast. And, by the way, I think he would say Comcast is a great partner of his because, if it wasn't for Comcast and the cable industry and the investments we've made in broadband, Netflix would not be as successful as it is, and Netflix has clearly enabled us to sell more broadband subscriptions." Then came the hogwash part. He said peering agreements are nothing new, were how the Internet was built, and have nothing to do with network neutrality or the "stronger" rules Hastings was calling for.

The FCC Pulls the Plug on Broadcasters

[Commentary] The biggest problem facing the communications industry is a shortage of the invisible infrastructure known as spectrum. Broadband carriers need the licensed spectrum owned by broadcasters to meet skyrocketing demand for smartphone capabilities and other services. The Federal Communications Commission has an idea: Host a voluntary auction so broadcasters can sell spectrum to be repurposed for broadband. It's expected to take place in 2015. But what if no one comes? That's the multibillion-dollar question, as the success of the auction depends on a substantial number of television stations agreeing to sell their spectrum. Last March a group of broadcasters filed comments with the FCC expressing concern that the agency might not pay the stations their share of the auction revenue, or might impose restrictions on who can purchase the spectrum and for what price. The stations may have reason to wonder. The FCC should study the impact of joint marketing agreements on the marketplace. Issuing a request for broader comment on similar arrangements in the cable, online and mobile video market segments would avoid the appearance of picking winners and losers. It would also begin narrowing the trust deficit between broadcasters and the FCC -- putting the incentive auction back on a track to success.

[Campbell is executive director of the Center for Boundless Innovation in Technology]

Emergencia: FCC might require Spanish version of broadcast weather alerts

The Federal Communications Commission is reconsidering a rule that would provide Spanish broadcasts of emergency alerts and other important announcements.

The rule was originally recommended in the wake of Hurricane Katrina in 2005. Back then, groups including the Minority Media and Telecommunications Council petitioned the FCC to require broadcasters to notify Spanish listeners in the event of an emergency. "MMTC filed its petition on Sept. 22, 2005, in response to its perceived deficiencies in distributing multilingual emergency information in the aftermath of Hurricane Katrina," the agency wrote. The FCC is reopening the comment period for another month as it considers such a rule. The rule would require certain stations to air all presidential messages in both English and Spanish. To a lesser extent, emergency broadcasts in certain areas may also be aired in other languages, such as French or Mandarin.

House Republicans move to block Internet management switch

A group of House Republicans introduced a bill that would prohibit the Obama Administration from moving forward with its announced plans to relinquish oversight of the technical side of the Internet's Web address system. "America shouldn’t surrender its leadership on the world stage to a ‘multistakeholder model’ that’s controlled by foreign governments," Rep. Marsha Blackburn (R-TN), one of six cosponsors of the Domain Openness Through Continued Oversight Matters, or DOTCOM, Act. Other co-sponsors are Reps. John Shimkus (R-IL), Todd Rokita (R-IN), Joe Barton (R-TX), Bob Latta (R-OH) and Renee Ellmers (R-NC).

Smartphones, the Disappointing Miracle

Crittercism looked at three billion interactions a day with apps for one month. It’s useful to start by thinking about the overall network, with all its phones and carriers. That would include, say, an Android device being used in India, a BlackBerry on Wall Street, or an iPhone in Germany. Once you take into consideration all of the different phone models (2,582), carriers (691), and versions of operating systems (106), there are over 100 million possible permutations of how a signal might be processed. Then there are the underlying mechanics of each smartphone app. It may appear to be a single piece of software, but most apps change with nearly every load, drawing on new information from cloud computing systems for new data.

Crittercism says that 46 percent of apps rely on six or more different cloud services, like Facebook’s login system, ad placement businesses, or Amazon Web Services, to function. Three percent draw off more than 20 different cloud services to deliver, say, that music app or that mobile game. Then there are the apps themselves. “About two million of those, between Android, iOS and the other stores and downloads,” Andrew Levy, Crittercism’s chief executive, said in an interview. So an unimaginable number of permutations of phones then draw on a huge number of different multimillion-dollar data centers, probably run by different companies. And how long does it take to put all this together, from the time you hit the touch screen until it starts to react in your phone? In the United States, it’s about 320 milliseconds from making a request to the initial response. The real issue for companies, however, is not load times as much as failure rates. When that happens, customers are alienated and no business happens. A company with $1 billion in mobile revenue would lose $2.5 million a month with a 3 percent failure rate. Even losing one one-thousandth of the time is an $82,000 loss.

Missouri Legislators Ask That JSAs Be Grandfathered

In a letter to Federal Communications Commission Chairman Tom Wheeler, the Missouri congressional delegation -- seven Republicans, two Democrats -- said they "fully expect" the FCC to grandfather existing joint sales agreements. In addition, they want any deals in the pipeline -- Sinclair/Allbritton, Media General/Young Broadcasting, and Tribune/Local TV -- should also be considered under the old rules.

The legislators said that there is evidence in their state of the benefits of sharing arrangements. They said that through a series of such arrangements -- they did not identify whether they were joint sales, shared services or shared news services, or a combination of all -- a company was able to expand ad sales, reduce "redundant costs" and invest, helping a struggling station become an Edward R. Murrow award winner for best newscast. They pointed to a JSA that allowed for the upgrade of Doppler radar, a system that saved lives during a 2011 tornado, and said sharing agreements can benefit diversity.

Research: TV Is Still the Top News Source

A new survey from InkHouse and GMI, a Lightspeed Research company, finds that TV is still by far the preferred way to access news by nearly three quarters of all Americans and that TV is still the most trusted news outlet.

Their data shows that 73% prefer to get their news from television, which also ranks first among the most trusted news outlets, followed by news websites (52%), print magazines and newspapers (36%), radio (25%) and social media (23%). Not surprisingly, digital media is gaining ground, particularly among younger demos. Among those aged 25 to 44, 60% chose news websites as their preferred news source and among the 18-34 age group, 41% chose social media. The study also found that email remains the preferred way to share news, with 34% using email, followed by 29% using social media and 8% using text messages. But among those aged 18 to 24, 50% are more likely to share news on social media compared to 45% for the 24 to 35 age group and only eight percent of those 55 or older.

Seeking to Ban Online Betting, GOP Donor Tests Influence

A push by the billionaire casino magnate Sheldon G. Adelson to outlaw online gambling has ignited a bitter civil war in the gambling industry, dividing one of Washington’s most powerful interest groups and posing a major test of the Republican donor’s political clout.

Carlos Slim slams Mexico telecoms bill

Billionaire Mexican tycoon Carlos Slim has slammed a new telecoms bill before Congress as “confiscatory” and demanded that lawmakers rethink it.

Enrique Peña Nieto, Mexico’s president, sent a bill to Congress to implement the congressional reform passed last year, aimed at levelling the playing field. Analysts said it appeared that the government was intent on reining in the telecoms company’s power. Opposition parties have criticized the bill and it was not clear if it would face changes in Congress. Slim has a roughly 80 percent share of Mexico’s fixed-line market through his Telmex company, and 70 percent of mobile telephony via Telcel. His companies have been identified as the dominant market players by the telecoms regulator, IFT, which means they face being subjected to asymmetric rules to allow other players catch up.

EU commissioner attacks China’s telecoms subsidies

Karel De Gucht, the European Union’s top trade official, has attacked China’s subsidizing of its mobile telecommunications equipment sector even as he announced that Brussels would not pursue an investigation into the alleged unfair pricing of these products in Europe.

The EU trade commissioner announced that Brussels would not proceed with a long-mooted anti-dumping investigation into Chinese mobile equipment companies such as Huawei and ZTE. De Gucht said the EU was unlikely to reach a settlement over what is arguably the biggest outstanding trade case with China, one involving the government subsidies that Chinese telecommunications giants allegedly benefit from. The EU has threatened for years to launch a formal investigation into what it says are illegal government subsidies to the Chinese telecommunications sector that give them an unfair advantage in global markets. Such an investigation could result in the European Commission applying punitive tariffs on Chinese mobile equipment entering the EU.