February 2015

Sen Markey: Feb. 26 To Be Internet Innovation Freedom Day

Title II fan Sen Ed Markey (D-MA) got together with network neutrality activists to celebrate the anticipated Federal Communications Commission vote to reclassify Internet access as a telecommunications service under some common-carrier regulations and warned that ISPs and others would pull out all the stops to discredit that effort.

In a conference call with reporters, Sen Markey praised Free Press, former FCC chairman Michael Copps, Public Knowledge and others with being digital Paul Reveres: "You have called us to arms, you have sounded the alarm. You have taken to the 'Net and to the streets in order to advocate for this new set of rules being put on the books." Sen Markey said network neutrality activists on Feb. 26 would be able to declare their greatest victory. He said that date would be christened "Internet Innovation Freedom Day" and added that FCC chairman Tom Wheeler and the agency would be on "the right side of history."

Rep Eshoo: No middle ground on net neutrality

When it comes to network neutrality, you’re either with House Communications Subcommittee Ranking Member Anna Eshoo (D-CA) or you’re against her. “No one ponders over these things,” she said, referring to executives at major companies in her Silicon Valley district who have come out in favor of strong net neutrality rules. “You either are for net neutrality as far as consumers across the country, and if you’re not then you’re for the bad stuff.”

“I think members should look and listen to their constituents, because there isn’t anyone in my district that has raised their hand and said ‘Oh you know what? Discriminate against me. Come on down,’” she said. “It’s not a place for companies to be either.”

Public Knowledge President to Testify on the Certainty of the Internet Under Strong Net Neutrality

Public Knowledge cares about keeping the Internet open because the Internet has become -- as Congress has repeatedly recognized in past legislation -- the essential communications service of the 21st century. As communication, commerce, and civic engagement increasingly depend on broadband Internet access, it becomes even more critical to ensure that the Internet remains open for all Americans to participate online to the best of their abilities. Fortunately, in Title II, Congress has already given the FCC the flexibility to do just that.

Even while the FCC spent the last decade considering other sources of rulemaking authority, the FCC explicitly left Title II as an option should it ever become necessary. If Congress intends to remove this option, it needs to provide the FCC with an equally flexible tool to replace Title II and preserve open Internet and basic Network Compact protections. In our testimony before the Senate Commerce Committee on January 21, 2015 we detailed the specific weaknesses of the Thune/Upton draft bill including its removal of FCC rulemaking authority over broadband. Those seeking to limit FCC authority like to recite the mantra ‘first do no harm.’ While we appreciate Congress’s role in updating the Communications Act periodically, we remain concerned that current legislative proposals are likely to cause more harm than benefit.

The FCC’s Predictable Fiasco Of Internet Utility Regulation

[Commentary] On Feb. 26, the Federal Communications Commission plans to dictate the “strongest possible” 1934 economic regulation of the Internet -- currently the most dynamic, modern, and high-functioning part of the U.S. economy -- despite questionable legal authority and competence.

Detonating the Title II “nuclear option,” the FCC will assert regulatory jurisdiction over most everything involving Internet communications economy-wide for the first time. Over time, so much is likely to go wrong. Congressional Republicans have an open offer for a legislative compromise, which for the first time would give the FCC the actual direct legal authority to address all their currently identified potential net neutrality concerns -- blocking, throttling and paid prioritization -- just no unbounded blank check authority to address yet-identified issues which Congress has yet to determine are a problem. Only a bipartisan Congress can resolve this predictable fiasco legitimately for the benefit of the American people and Internet users.

[Scott Cleland is President of Precursor LLC, a research consultancy for Fortune 500 companies]

How Loopholes Turned Dish Network Into a ‘Very Small Business’

Charles Ergen, the billionaire who controls the satellite-TV provider Dish Network, and his company are about to make a cool $3.25 billion -- courtesy of the American taxpayer. This windfall came from a recent successful auction of wireless spectrum that raised more than $40 billion for the American treasury. But it will be $3.25 billion less than it ought to be, if Ergen and his clever lawyers have their way.

The reason is that Dish Network bid for licenses through a newly formed vehicle that claimed to be a “very small business” under the Federal Communications Commission rules and was entitled to a 25 percent discount. Through sleight of hand and aggressive use of partners and loopholes, Dish turned itself into that very small business, distorting reality and creating an unfair advantage.

Senate Commerce Committee Aims to Flex Its Muscle on Big Issues

In a partisan climate that spells doom for the vast majority of issues, there are at least two policy arenas left where Republicans, Democrats, and the White House can plausibly come together on important legislation this year -- cybersecurity and infrastructure. It just so happens that the Senate Commerce Committee owns a piece of each issue, sharing turf with several powerful panels, and Chairman John Thune (R-SD) is intent on having his committee play a major role in both debates -- more so than it has in other recent high-profile fights.

Chairman Thune is adopting the theatrical adage that there are no small parts, only small actors. "Part of it's being proactive. You can kind of sit back and let the game come to you, or you can try and create. I've always believed that offense wins games," Chairman Thune said. This is the new Commerce Committee, headed by a new chairman in Thune and a new Ranking Member in Sen. Bill Nelson (D-FL). Committee staffers like to say that they oversee oceans and space and everything in between. That's not far off, considering that they have worked on issues as diverse as domestic violence in professional sports, protections for passengers on tourist cruises, and exploding air bags. And then there's this little thing called the Internet. Yet over the past few years, the Commerce Committee was essentially a bit player in the biggest legislative developments.

FCC's FY 2014 Annual Performance Report

This report summarizes the Federal Communications Commission’s progress in fulfilling its strategic goals and meeting its performance commitments as expressed in the Commission’s fiscal year 2014 Annual Performance Plan. The Annual Performance Plan was issued as part of the FCC’s FY 2014 budget submission to Congress.

Comcast May Soon Have More Web Users Than Cable Subscribers

Signs of the times: The largest cable company in the US may soon have more Internet than TV subscribers.

Comcast’s video users increased by 6,000 last quarter, for a total 22.4 million. Meanwhile broadband subscribers surged by 375,000 to almost 22 million. The shrinking gap underscores the sea change in the way consumers are watching televised entertainment in the country -- more and more online on services like Netflix and Amazon, and less and less on TV. The result: pay-TV providers like Philadelphia-based Comcast are competing hard to attract more broadband users.

Ranking Member Nelson (D-FL) Questions FCC About Use of Surveillance Technology

Senate Commerce Committee Ranking Member Bill Nelson (D-FL) has asked the Federal Communications Commission to review the use of cell phone monitoring devices that are now in the hands of numerous local law enforcement agencies.

The use of the so-called StingRay device is gaining increased scrutiny not only in the media, but in Congress as well. Ranking Member Nelson wrote that he would like information on the following:

What information the FCC may have had about the rationale behind the restrictions placed on the certification of the StingRay, and whether similar restrictions have been put in place for other devices.
Whether the FCC inquired about what oversight may be in place to make sure that use of the devices complied with the manufacturer’s representations to the FCC at the time of certification.
A status report on the activities of the “task force” you previously formed to look at questions surrounding the use of the StingRay and similar devices.

Comcast Reports Small Profit in the Face of Regulatory Uncertainty

Uncertainty regarding new strict rules governing the Internet as well as the prospects for its proposed merger with Time Warner Cable hung over Comcast as the media conglomerate reported fourth-quarter profits that were up only slightly compared with the period in 2014. Comcast reported that net income for the quarter that ended Dec. 31 inched up 0.6 percent to $1.9 billion, or 74 cents a share, up from $1.9 billion, or 72 cents a share, during the period in 2014. Total revenue increased 4.8 percent to $17.7 billion, with growth in its broadband and broadcast businesses offsetting advertising weakness at its cable networks.

Benton

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