September 2014

FCC Chief Wheeler Says Utility-Style Web Rules Possible

Federal Communications Commission Chairman Tom Wheeler said the agency is considering utility-style rules for Internet traffic. The rules are “very much on the table,” Chairman Wheeler told the House Committee on Small Business.

He said the agency is considering rules under Title II, which refers to regulations drafted to regulate telephone service before widespread deployment of high-speed Internet service, or broadband. Chairman Wheeler also listed “fast lanes” among activities such as blocking websites as an activity that interferes with broadband service.

No Question About an Open Internet

Verizon is committed to an open Internet. We provide customers with an open Internet on both our wireline and our wireless networks. We are committed to providing an open Internet for our customers and make that clear in a set of principles that we have posted on our website. You can review those principles here. But this debate has never been about an open Internet -- everyone supports that. It has been about how heavily broadband should be regulated. Supporting an open Internet and supporting the imposition on wireless networks of a regulatory regime first written for the rotary phone are two very different things. Our comments in the “Open Internet” proceeding have been consistent.

As our filings make clear -- and as the “Open Internet Order” in 2010 made clear -- the FCC recognized that “wireless is different.” Robust competition in the mobile broadband marketplace has led to a remarkable level of innovation that is constantly changing and accelerating. Moreover, unique technical challenges, including limited spectrum and other operational issues, require a different approach than the one-size-and-speed-fits-all approach that net neutrality advocates seem so fixated on. Just as important: consumers benefit most when mobile-service providers have the flexibility to experiment and innovate to win their business. Heavy regulation could stifle creativity and innovation even more in the rapidly changing and highly competitive mobile environment than it will in the wireline environment.

Sorry, AT&T and Verizon: 4Mbps isn’t fast enough for “broadband”

Contrary to what AT&T and Verizon would have you believe, Federal Communications Commission Chairman Tom Wheeler said 4Mbps is too slow to be considered broadband and that Internet service providers who accept government subsidies should offer at least 10Mbps.

At a hearing in front of the House Committee on Small Business, Rep Blaine Luetkemeyer (R-MO) pointed to communities with little or no access to high-speed broadband, saying if the minimum speed isn’t high enough, “rural constituents in my district will be left on the wrong side of the digital divide.” Chairman Wheeler responded: “We have proposed increasing the throughput in order to get Universal Service funds from 4Mbps to 10Mbps for precisely the reason that you mentioned, that you can’t have a digital divide. When 60 percent of the Internet’s traffic at prime time is video, and it takes 4 or 5Mbps to deliver video, a 4Mbps connection isn’t exactly what’s necessary in the 21st century. And when you have half a dozen different devices, wireless and other connected devices in a home that are all going against that bandwidth, it’s not enough. What we are saying is we can’t make the mistake of spending the people’s money, which is what Universal Service is, to continue to subsidize something that’s subpar.”

FCC Process Gets Critical Eyes

The Federal Communications Commission's Managing Director Jon Wilkins and Inspector General David Hunt came in for some tough questioning from House Communications Subcommittee members in a hearing on FCC process reform.

IG Hunt was particularly critical of FCC Chairman Tom Wheeler's creation of a strike force to weed out waste, fraud and corruption in the Universal Service Fund, as well as his inability to hire criminal investigators. He said that there was confusion at DOJ about who was in charge of investigations and that it might have been better to put the strike force under IG, which has to report to Congress. Wilkins said that the two were complimentary, that they needed to coordinate, and that he thought there had been some good coordination. The FCC's IT, particularly Web site functionality, came in for criticism, with Subcommittee chairman Greg Walden (R-Ore.) saying as a former broadcaster, he found it "useless." Republican members honed in on the strike force issue and IT problems, though Democrats also had trouble with an agency focused on communications whose web site was brought down by the flood of network neutrality comments.

STAVRA Bill Passes Senate Commerce

The Senate Commerce Committee swiftly and without drama approved a relatively clean version of the Satellite Television Access and Viewer Rights Act (STAVRA) reauthorization bill.

At base it renews the compulsory license that allows satellite operators to deliver distant network signals and the Federal Communications Commission's authority to enforce good-faith negotiations. It puts Congress' stamp on an FCC effort to prevent coordinated retransmission consent negotiations among non-commonly owned stations in the same market — which broadcasters have signaled they can live with — and eliminated the ban on integrated set-tops, both of which cable operators were pushing for. Cable operators were pleased that the bill had not been loaded with those amendments.

Under new ownership, WJLA-TV takes a slight turn to the right

There’s a new owner and a new approach to the news at WJLA-TV, Washington’s ABC affiliate. Under the direction of its ambitious corporate parent, Sinclair Broadcast Group, the station’s news operations have taken a subtle but noticeable turn to the right.

In July, Sinclair received federal approval of its $985 million purchase of WJLA, its sister cable news station, NewsChannel 8, and six other stations owned by Allbritton Communications. Allbritton, which continues to own Politico , had operated WJLA for 40 years. Since completing the acquisition, Sinclair has moved swiftly to remodel WJLA, by far the largest and most important asset in the company’s rapidly expanding portfolio. The company has spent $2.8 billion over the past three years to buy stations, and now owns or operates 164 of them, making it the largest station operator in the nation.

Tech firm tries to pull back curtain on surveillance efforts in Washington

Some specially outfitted smartphones are designed to act like high-tech divining rods that warn users of suspicious mobile activity, potentially indicating surveillance equipment used by police, intelligence agencies and others to track people and snoop on their calls.

Known as IMSI catchers, for the unique identifying phone code called an IMSI, the surveillance devices trick mobile phones into thinking they have logged onto legitimate cell networks, such as Verizon or AT&T, when in fact the signals have been hijacked. For years, researchers have warned of the growing prevalence of the equipment, and the spygear is rife throughout the Washington area, says Aaron Turner, chief executive of Integricell, a mobile security company.

How much does it really cost Apple to make an iPhone 6?

[Commentary] An unlocked iPhone 6 costs $649 and it is $749 for an unlocked iPhone 6 Plus. It's probably not far off the mark to figure that Apple is making at least $400 on every iPhone 6 sold.

'I've never felt excluded in Silicon Valley'

[Commentary] I've never felt excluded in the Silicon Valley, and I've never felt like opportunities were not open to me. While I had good scores in high school, I sometimes wonder if I benefited from affirmative action -- a program I believe to be flawed but whose spirit is spot on. In my opinion, it's wrong to push companies to introduce similar programs. Companies are formed to help increase shareholder value. If hiring minorities helps contribute to this goal, great. But if it does not, it's not right to criticize these companies when their ranks don't align with representative ratios -- particularly when their founders say that they want to increase diversity within their organization. From my experience, I feel that minority groups are simply not aware of all of the opportunities in technology.

[Lepe is founder and CEO of Wizeline, a data-analytics company]

Verizon’s Interest in Tower Sale Sparked by $5 Billion AT&T Deal

Verizon Communications Chief Financial Officer Fran Shammo said the $4.83 billion payout AT&T got for selling its wireless towers opened the company’s eyes to the potential benefits of a similar transaction. The option to sell network towers has become more favorable over the past year, and Verizon is considering the move, Shammo said. Verizon has an estimated 12,000 to 15,000 towers.

Benton

Search