January 2015

Netflix, Verizon get in last word on Internet rules

Companies like Netflix and Verizon are getting in a last word before the Federal Communications Commission circulates its network neutrality rules.

They are keying in on the potential for expanded rules to govern the point of interconnection -- where data is transferred from the backbone networks of the Internet to the last mile, where Internet service providers route the content to customers. Netflix has pushed for network neutrality rules to govern interconnection, while Verizon and AT&T oppose it.

FCC 25 Mbps Decision Draws Diverse Crowd

The Federal Communications Commission drew understandably mixed reactions from Washington communications players to its vote Jan 29 to make 25 Mbps the new high-speed broadband threshold.

Time Warner Cable's Q4 Has Some Analysts Wondering, Who Needs Comcast?

Time Warner Cable managed to surprise a lot of analysts on Jan 29 with fourth quarter results that trounced expectations for the company and caused some to speculate that TWC could thrive even in the absence of a Comcast merger.

The probability of a Comcast-TWC merger, once thought as a given, has now become increasingly cloudy as the government flexes its muscles. TWC grew both triple play and broadband customers. Now, that’s not to say everything is roses and bunny rabbits for TWC -- residential services revenue was up just 0.5 percent in the period. Average monthly programming costs per video subscriber increased 12.5 percent in the fourth quarter. Time Warner Cable is far from perfect. But if it can keep up this subscriber momentum it will be handing off a much better company to Comcast than the one it agreed to sell them in February 2014.

4G wireless coming to CTA subways later this year

Smartphone service dead spots could be a thing of the past for thousands of daily Chicago Transit Authority riders in Blue and Red Line tunnels, under a $32.5 million deal.

The 20-year agreement calls for four major wireless providers to pay for the installation, operation and maintenance of the latest-generation 4G communications technology, starting on the Blue Line to accommodate travelers going between O'Hare International Airport and downtown. T-Mobile, Sprint, AT&T and Verizon are banking on strong revenue growth from wireless broadband, because data usage is increasingly overtaking voice as the primary source of traffic on mobile networks. T-Mobile, AT&T, Verizon and Sprint will pay for the entire upgrade related to the design and construction of a distributed antenna system capable of supporting 4G wireless networks and mobile devices, officials said.

With shows like ‘Empire,’ ‘Black-ish’ and ‘Cristela,’ TV is more diverse than ever

The networks have hit on a surprising formula for success: airing television shows in prime time created by and starring minorities.

In prime time now, there is the new hit Fox show “Empire,” a soapy hip-hop drama starring ¬Oscar-nominated actors Terrence Howard and Taraji P. Henson. ABC’s “Black-ish,” starring Anthony Anderson and Tracee Ellis Ross, portrays an upper-middle-class African American family. Other prime-time shows feature Hispanic women and their families, a South Asian comedian, an Asian American romantic lead actor and an Asian American family.

Cablevision Sues Verizon Over Wi-Fi Ads

Just days after Cablevision Systems introduced Freewheel, a Wi-Fi-only voice, text and data product for smartphones, the operator said it has filed a suit against Verizon that calls for Verizon to put a halt to advertisements that, Cablevision alleges, make “false, misleading and deceptive advertising claims about Wi-Fi service.”

In exhibits tied to the complaint, Cablevision cites several Verizon ads claiming that FiOS has “the fastest Wi-Fi available from any provider, period.” Verizon’s claim that it has faster Wi-Fi than Cablevision is false, deceptive and designed to mislead consumers,” Cablevision said. “Verizon has no public Wi-Fi network. In addition, Verizon’s in-home routers are not faster than Optimum Smart Routers and cost Verizon customers hundreds of dollars while Optimum’s are free." A Verizon spokesperson responded by saying, "We have not seen the lawsuit but this is a boldface ploy to promote Cablevision’s latest wireless gambit. A third party has tested and validated the FiOS Quantum Gateway Router. It offers the fastest in-home Wi-Fi available from any provider. As usual, Cablevision is confusing consumers by using apples to oranges comparisons, in this case of in-home and public Wi-Fi.”

Multi-Screen TV Viewing Far Exceeds OTT Video Viewing

Americans spend an average 175 hours per month engaged with a combination of multi-screen TV, four major Internet portals, YouTube and Facebook -- 35 hours per month more than they spend working. Eighty percent of that time is spent watching multi-screen TV, according to an analysis from the Cabletelevision Advertising Bureau. The 175 hours includes time spent using mobile and non-mobile devices. Despite all the attention being given to Internet and over-the-top video viewing, multi-screen TV is where American consumers are spending the vast bulk of their time.

New FCC broadband threshold misses innovation opportunity

[Commentary] The Federal Communications Commission voted 3-2 to raise the definition of broadband to 25 mbps down/4 mbps up. The bigger issue is that the FCC missed an opportunity to reach its stated goal of ensuring “advanced telecommunications capability to all Americans in a reasonable and timely fashion” in a faster, smarter, and cheaper way.

Rather than drafting a new regulatory requirement, the FCC could encourage that the services people consume (particularly video, which takes up two-thirds of America’s network capacity) make more efficient use of bandwidth. Improved content encoding and video compression can save 30-50 percent of bandwidth, not to mention drive cost reductions for content and video providers. Engineers in developing countries are innovating video services on networks that deliver less than 1 mbps. Mandating increased speeds and indiscriminately building networks are brute force solutions. The smart, scientific, and cost-effective approach is to format content better to make more efficient use of networks.

[Roslyn Layton studies Internet economics at the Center for Communication, Media, and Information Technologies at Aalborg University in Copenhagen, Denmark]

HHS proposes path to improve health technology and transform care

The Department of Health and Human Services’ Office of the National Coordinator for Health Information Technology released Connecting Health and Care for the Nation: A Shared Nationwide Interoperability Roadmap Version 1.0.

The draft Roadmap is a proposal to deliver better care and result in healthier people through the safe and secure exchange and use of electronic health information. The draft Roadmap calls for ONC to identify the best available technical standards for core interoperability functions. With this announcement, ONC is delivering on this action with the release of the Draft 2015 Interoperability Advisory: The best available standards and implementation specifications for interoperability of clinical health information . The Standards Advisory represents ONC’s assessment of the best available standards and implementation specifications for clinical health information interoperability as of December 2014.

NAB Board: Go For Auction; Split on ATSC 3.0

[Commentary] Members of the National Association of Broadcasters TV board are unified on how to proceed on the Federal Communications Commission incentive auction.

Going forward, the NAB will represent broadcasters who are interested in selling spectrum as well as those who are not. But NAB board members couldn't get together on the other critical strategic issue before the industry: ATSC 3.0. While most affiliates want to go full bore on developing and implementing the next-generation broadcast standard, the networks want to slam on the brakes. That's too bad. If ATSC 3.0 is to have a chance of saving broadcasting, it's going to need all the help it can get.