November 2014

House Commerce Committee Chairman Upton Statement on Priorities for the 114th Congress

We have … spent the past year gathering input and information to inform our work to bring the nation’s communications laws into the 21st Century. Over the next several months, we will take what we have learned from our hearings and white papers to update the law to boost job creation and economic growth in the innovation era. Likewise, we have made progress on key issues to consumers, workers, and job creators, exploring issues that range from data protection to privacy to manufacturing. We will continue to advance these priorities in the coming year.

In Gov Quinn, tech found one of its strongest allies

Sure Gov Pat Quinn (D-IL) will be missed by labor, but the tech community also counted the governor as a major ally. He wrote checks that helped turn some of Chicago's most high-profile tech projects, such as 1871 and UI Labs, into realities.

The state provided $2.3 million for 1871, which opened in 2012 in the Merchandise Mart and became the city's symbolic hub for tech startups. Earlier in 2014, he doubled down with another $2.5 million to expand 1871. Gov Quinn also bankrolled Matter, a similar effort for health-technology startups at the Merchandise Mart. The governor was generous in offering incentives to tech companies -- including Motorola Mobility, Groupon and Braintree -- that added jobs. Although it often seemed Gov Quinn was competing with Chicago Mayor Rahm Emanuel (D) for credit in creating tech jobs, Quinn, as governor, had the checkbook and put his money where his mouth was.

7 Colorado communities just voted themselves the right to build their own broadband

Voters in seven cities and counties in Colorado voted to free their local governments to offer Internet service.

The votes marked a defeat for big, traditional Internet service providers such as Comcast that have successfully maneuvered to inject limits on municipal broadband into state regulations over the last decade. Now cities are figuring out ways to push back, including wiggling out from under laws the industry helped put in place.

In Boulder, locals voted on whether the city should be "authorized to provide high-speed Internet services (advanced services), telecommunications services, and/or cable television services to residents, businesses, schools, libraries, nonprofit entities and other users of such services." The city approved the measure with 84 percent of the vote. Similar overrides also passed by large margins in the towns of Yuma, Wray, Cherry Hills Village and Red Cliff and in Rio Blanco and Yuma counties

In Detroit and other cities, nearly 40 percent go without Internet

It may be hard to believe, but there are big cities in the US where 30 to 40 percent of residents have no Internet service at all. And among those who are online in America's worst-connected cities, a sizable percentage get by with only cellular Internet.

That's according to 2013 census data compiled by Bill Callahan, director of Connect Your Community 2.0, a group promoting Internet access for residents of Cleveland (OH) and Detroit (MI). Callahan published charts showing how many households lack Internet access in the 25 worst connected cities in the US (out of 176 that have at least 50,000 households).

In Laredo (TX) 40.2 percent of the 65,685 households have no Internet access, not even mobile broadband on a phone. Detroit was second in this list with 39.9 percent of households lacking Internet. In all 25 cities, at least 29.8 percent lacked Internet access. The 25 cities varied in size from 52,588 households (Kansas City, KS) to 255,322 households (Detroit).

Does the FCC really not get it about the Internet?

[Commentary] The key to an open Internet is nondiscrimination and in particular, a prohibition on discrimination or prioritization based on the identity of the user (sender/receiver) or use (application/content). Unfortunately, the rules now being considered by the FCC don’t come close to implementing this simple and important benchmark.

There are many reasons for this, but perhaps the most fundamental is a simple misconception, one that persists in the work of the FCC but also of proponents and opponents of network neutrality. It is the false distinction between what they call “edge providers” (YouTube) and “end users” (people who watch videos on YouTube). Who exactly are the end users that are not edge providers? In other words, who uses the Internet but does not provide any content, application, or service? The answer is no one. All end users provide content as they engage in communications with other end users, individually or collectively.

[Brett Frischmann is the director of the Cardozo Intellectual Property and Information Law Program]

Mr. Wheeler Agrees: It’s The “Termination Market”

[Commentary] Apparently, Federal Communications Commission Chairman Tom Wheeler intends to divide the two-sided broadband market into its components -- a retail and a termination service -- and then reclassify the termination service as a Title II common carrier telecommunications service but leave retail services as a mostly unregulated Title I information service. What I like about the announcement is that the Chairman has finally put an end to debates about the relevant transaction of interest. With Chairman Wheeler now formally talking about carving out the “termination market”, he has settled the matter. A Section 706 approach to the termination market faces few if any hurdles.

CAF Target Speed: CWA Wants 10 Mbps

Perhaps unsurprisingly the Communications Workers of America would like to see the Federal Communications Commission raise the target speed for the Connect America Fund to 10 Mbps from its current 4 Mbps – a move the FCC has been considering for several months.

That program aims to make several billion dollars available to the nation’s largest price cap carriers to bring broadband to rural areas of the country where broadband is not available today. “CWA represents the workforce at the largest price-cap carriers,” wrote CWA President Larry Cohen in a letter sent to FCC Chairman Tom Wheeler. “Carefully balancing the CAF rules to encourage participation by the price cap carriers will support quality, career jobs in rural America and ensure that there is a qualified workforce immediately available to build, maintain and service CAF supported broadband networks.” Building out networks supporting 10 Mbps would be a bigger project than building 4 Mbps networks and, therefore, would create greater job security for carrier employees. Additionally the number of homes that would be considered unserved could increase substantially if the higher speed target were chosen.

One man’s failed quest to buy wired Internet from TWC or Verizon

Many Americans have just one good option for wireline broadband service. But even one good choice puts them ahead of people in some sparsely populated areas that Internet service providers neglect because they aren’t dense enough to provide huge profits.

Although progress is being made in rural America through a combination of private and public initiatives, there are still people like Jesse Walser of Pompey, a town of 7,000 residents in New York. Walser, who works as a laboratory analyst at a beer brewery, is one of the five percent of Americans who live in areas without any providers offering wired Internet service (excluding dialup). Walser’s only viable options are wireless.

Home Bandwidth Demands Set To Rise 31%: Study

An ACG Research study sponsored by Ciena finds that over the top (OTT) video across multiple devices are poised to increase households bandwidth requirements by 31% annually over the next five years.

Peak hour average usage per home will jump from 2.9 Mbps this year to 7.3 Mbps in 2018, holding that such a metric is directly applicable to residential backhaul planning. Ciena and ACG said the forecast will help network planners brace for this coming demand as broadcast video services increasingly get delivered in multicast across the metro network, and distributed as bandwidth-eating unicast streams in the home. The forecast also predicts that OTT unicast video traffic will be 4.6 times greater than multicast traffic by 2018,while usage of Internet video grows from 12% of overall peak average bandwidth this year, to 25% in 2018.

TNS: Propensity to Upgrade Pay TV Subscription Rises with OTT Video Use

As well as posing a long-term competitive threat, the rising tide of over-the-top (OTT) alternatives to pay-TV programming may be providing benefits to pay-TV service providers, according to new market research from TNS.

The quantity and diversity of video content entering the home via paid programming sources appears to be growing, resulting in healthy demand for the industry as a whole. Over the past year, about one in six pay-TV subscribers (16 percent) adjusted their level of video service by either upgrading to a higher tier or downgrading to a lower tier. Pay-TV households that also stream content via the Internet are more than twice as likely – 25 percent compared to 12 percent – as non-streaming households to have changed their pay-TV service level, according to TNS’s latest quarterly survey of nearly 25,000 US households, which was conducted by ReQuest.