June 2014

FCC Chief Plans Action on Wi-Fi in Schools

Though the Federal Communications Commission spends $2.4 billion a year to provide schools and libraries with high-speed Internet connections, none of that has gone in recent years to pay for Wi-Fi connections -- something that is often available free in coffee shops, hotels and parks. FCC Chairman Tom Wheeler is said to want to change that.

According to FCC officials who spoke on the condition of anonymity, Chairman Wheeler is planning to offer his fellow commissioners a proposed regulatory change to promote Wi-Fi in schools. Wheeler’s aim is to get the issue on the agenda for the FCC’s July 11 meeting. FCC Commissioners from both parties have expressed support for reforming E-Rate. Ajit Pai, the senior Republican commissioner, said last month that the FCC should consider reforms that are as broad as possible.

Removing Barriers to Competitive Community Broadband

Ironically, Chattanooga is both the poster child for the benefits of community broadband networks, and also a prime example of the efforts to restrict them.

Tennessee is one of many states that have placed limits on the deployment of community networks. Tennessee’s law is restricting Chattanooga from expanding its network’s footprint, inhibiting further growth. The mayor told me how adjoining communities have asked to join the network, but cannot also be served by a simple extension of the broadband network because of the state law. In some of these communities, there is no available broadband service whatsoever. Commercial broadband providers can pick and choose who to serve based on whether there is an economic case for it. On the other hand, Mayor Berke told me that Chattanooga believes that it has a duty to ensure that all of its citizens have affordable broadband Internet access.

I understand that, like any venture, community broadband there hasn’t always been a success. But a review of the record shows far more successes than failures. If the people, acting through their elected local governments, want to pursue competitive community broadband, they shouldn’t be stopped by state laws promoted by cable and telephone companies that don’t want that competition. I believe that it is in the best interests of consumers and competition that the FCC exercises its power to preempt state laws that ban or restrict competition from community broadband. Given the opportunity, we will do so. Removing restrictions on community broadband can expand high-speed Internet access in underserved areas, spurring economic growth and improvements in government services, while enhancing competition. Giving the citizens of Chattanooga and leaders like Mayor Berke the power to make these decisions for themselves is not only the right thing to do; it’s the smart thing to do.

Music Industry Officials Agree on Need for Licensing Rule Changes, but Little Else

The complex system of music licensing came under attack in a congressional hearing, as entertainment and media executives pleaded for changes to how music rights were acquired and paid for online and by radio and television stations. Yet the executives offered little common ground about how to solve the problems they highlighted, and repeatedly clashed with one another during two and a half hours of testimony -- giving lawmakers a preview of how difficult it may be to satisfy all parties in the rapidly evolving but fractious music market. The hearing, before a House Judiciary subcommittee, was part of a broad review of copyright led by full Committee Chairman Robert Goodlatte (R-VA).

Twitter and Facebook hoping to ride World Cup wave

Both Twitter and Facebook hope to kick up usage a few notches by appealing to fans of the world’s biggest sporting event, the World Cup.

Twitter launched a #WorldCup and #WorldCup2014 timeline that compiles tweets about the big soccer tournament from people you follow, teams, players, coaches, reporters and fans. There’s also a new match timeline that focuses on specific matches, keeping track on goals, saves and fouls.

Meanwhile, Facebook has also launched its own Trending World Cup page, which includes relevant posts, scores, highlights and links to team pages. There’s also an interactive map showing where the fans of top World Cup players live.

Google Chromecast usage waning, report says

A new report says usage of the Google Chromecast is declining even while adoption of other streaming media players is up. That could be a disturbing trend for Google, which made a big splash last summer when it introduced the $35 streaming media dongle.

Parks Associates said six percent of U.S. households that have broadband Internet service owned a Chromecast during the first quarter. The overall market for streaming media players, including rivals Roku and Apple TV, has increased to 20 percent, up from 14 percent in 2012. But a survey of 10,000 broadband households showed usage of Chromecasts was already declining. About 73 percent of Chromecast owners said they watched online video using the device in during the first quarter, compared to 78 percent who did so in the third quarter of 2013.

Eric Cantor Defeated by David Brat, Tea Party Challenger, in Primary Upset

In one of the most stunning primary election upsets in congressional history, the House majority leader, Eric Cantor (R-VA), was soundly defeated by a Tea Party-backed economics professor who had hammered him for being insufficiently conservative.

The result delivered a major jolt to the Republican Party -- Rep Cantor had widely been considered the top candidate to succeed Speaker John Boehner -- and it has the potential to change both the debate in Washington on immigration and, possibly, the midterm elections. With just over $200,000, David Brat, a professor at Randolph-Macon College in Ashland (VA), toppled Rep Cantor, repeatedly criticizing him for being soft on immigration and contending that he supported what critics call amnesty for immigrants in the country illegally.

Moody’s questions benefits of telecoms mergers

Moody’s, the rating agency, warned that the telecoms industry could see limited benefits from sector consolidation because of its need to address competition concerns.

Mergers in the telecoms sector may not reduce competitive pressures on margins and profits as much as companies have hoped. Moody analysts point to the stringent competition remedies required to win EU approval of a merger between two telecoms groups in Ireland. High quality global journalism requires investment. Moody’s found that the requirement for Hong Kong’s Hutchison Whampoa to sell part of its network capacity to mobile virtual network operators (MVNOs) meant that price competition was unlikely to ease after it acquired O2 Ireland. Instead, the analysts said that cable operator UPC, which is owned by Liberty Global, will be the main beneficiary as its agreement with Hutchison Whampoa will allow it to improve its product offerings and cross-sell mobile services to its customers.

EU-Mandated Switch to Pilot Texting Brings Risks

A European effort to streamline communications between pilots and air-traffic controllers is creating confusion and safety threats, according to the European Aviation Safety Agency, the region's aviation regulator.

Nagging problems with the $1.3-billion initiative -- intended to replace voice communication with text messaging -- have broad international implications. The same type of electronic data-link systems also are essential components of future air-traffic control upgrades planned for the US and other regions.

FCC Seeks Comment on T-Mobile's Petition Regarding Data Roaming

On May 27, 2014, T-Mobile USA filed a petition for an expedited declaratory ruling that would provide guidance on the criteria used for determining whether the terms of a data roaming agreement meet the “commercially reasonable” standard set forth in the Federal Communications Commission’s data roaming rule ( requires facilities-based providers of commercial mobile data services to offer roaming arrangements to other such providers on “commercially reasonable terms and conditions.”

T-Mobile contends that providers need this guidance to evaluate the commercial reasonableness of terms offered in individual negotiations and to reach agreements. In this public notice, we seek comment on the Petition. Interested parties may file comments and reply comments on the above Petition on or before July 10, 2014. Reply comments are due August 11. All pleadings must reference WT Docket No. 05-265.

House Commerce Democrats Call for Merger Hearings

House Commerce Committee Democratic leaders have asked their Republican counterparts, who control the agenda, to hold hearings on the proposed Comcast/Time Warner Cable and AT&T/DirecTV mergers, and a Sprint/T-Mobile deal if that ever materializes.

That request came in a letter from Reps Henry Waxman (D-CA) and Anna Eshoo (D-CA), the ranking members of the full committee and Communications Subcommittee, respectively, and Rep Doris Matsui (D-CA), to full committee Chairman Fred Upton (R-MI) and Subcommittee Chairman Greg Walden (R-OR).