February 2015

Sen Thune's Plan: Give on Net Neutrality, But Put Stricter Limits on FCC

Senate Commerce Committee Chairman John Thune (R-SD) has a strategy for stopping federal regulators from seizing broad powers over the Internet: Give them what they want. Chairman Thune is working on legislation that would direct the Federal Communications Commission to protect network neutrality. But the proposal comes with strings attached -- Chairman Thune and other Republicans want to use a net neutrality bill to curb the FCC's overall power to regulate the Internet.

"Congress … is the only entity that can settle this issue with true certainty," Chairman Thune said in a speech at Reboot Congress, a libertarian technology conference. "And we can do so in a way that will empower the FCC with the strong tools many believe are needed to protect the Internet while simultaneously ensuring the agency is appropriately limited in its reach and authority."

FCC Commissioner Mignon L. Clyburn‘s Remarks at CompTel's Competition and Innovation Policy Summit

I’m hopeful we can continue the trend of promoting wireline competition for, in the end, it is consumers that benefit from more choice, more innovation and lower prices. But, competition does not necessarily happen organically -- the advent of competition has often occurred because of policies that promote and encourage entry.

As I see it, promoting competition (and maintaining it where it exists) requires two things. One, we need to ensure access to the last mile and second, we need to promote deployment of networks, including removing any obstacles or impediments that may hinder deployment. While we still have more to do, particularly when it comes to modernizing our rules regarding wholesale access, there is a lot of promise and opportunity and I look forward to working with CompTel on these issues.

FCC Commissioner Michael O'Rielly’s Remarks Before the National Association of Broadcasters State Leadership Conference

Commissioner Michael O'Rielly of the Federal Communications Commission told an audience of TV executives in Washington that it was past time for the FCC to update its media ownership rules, and to start letting the public see items in advance of FCC votes. Commissioner O'Rielly was preaching to the choir when he said that the commission continued to saddle broadcasters with restrictions like the newspaper-broadcast ownership rule. He said the FCC recently had "virtually ignored" the 1996 Telecommunications Act mandate to review and adjust media ownership rules every four years, and repeal or modify any that are no longer in the public interest due to increased competition.

Verizon will fix your landline in a month -- or give you wireless right now

Verizon's aging copper landline telephone network has been offline for numerous customers in Manhattan (NY) over the past few weeks, giving Verizon another chance to convince customers to ditch their landlines for wireless service. This has been a recurring theme for Verizon, which often tells customers their phone lines can't be fixed right away but that they can switch to "Voice Link," a wireless replacement for landlines. Voice Link isn't regulated as a utility like the copper landlines are, and it can't last through power outages the way copper lines can. In other cases, Verizon has pushed Voice Link as a permanent replacement for landlines.

Customers who decline Voice Link as a permanent replacement generally do so because of concerns about wireless quality and reliability, plus its reliance on battery backup. Copper lines can keep working during power outages by drawing power from the central office, but of course the copper lines themselves are vulnerable to weather. Verizon argues that Voice Link is reliable, saying, "Voice Link connects to the home’s power, but the units can work on standard, easily replaceable AA batteries in the event of a power outage...We feel that offering our customers a Voice Link unit is better than having no alternative for them."

Tech Lobby Doesn't Lack for Cash or Issues

Technology and telecommunications companies have spent more than $3.3 billion on lobbying over the past decade. And they're just getting started. Network neutrality has recently consumed the interest of companies that would be affected by Internet regulations. But even after the Federal Communications Commission votes Feb 26 to implement a plan that would regulate broadband Internet as a utility, they will continue to spend big.

The tech industry's next major lobbying fight will likely be over privacy, says Bill Allison, senior fellow at the Sunlight Foundation. That includes questions of whether the police can trace mobile phones or ask an email provider for a customer's emails, as well as a debate about the extent of the National Security Agency's surveillance. Meanwhile, telecommunications companies and groups will focus on updating the Communications Act, which governs how telecommunications are regulated, and on pushing the government to free up more unlicensed spectrum for Wi-Fi, said Brian Dietz, vice president for communications at the National Cable and Telecommunications Association.

Windstream Targets E-Rate Funding for Wi-Fi

The Federal Communications Commission recently revised the Universal Service Fund E-Rate program, which helps fund telecommunications services for schools, to focus more on broadband, and Wi-Fi specifically. Windstream has taken notice and is targeting E-rate funding for Wi-Fi, with a managed Wi-Fi service. The new E-Rate focus makes about $1 billion available in funding for Wi-Fi or other internal connectivity solutions. Windstream has offered a managed Wi-Fi solution for some time and has now “…packaged its Managed Wi-Fi solution specifically for those taking advantage of E-Rate funding,” according to a company press release.

Windstream has offered the service since 2007 and claims over 100,000 hotel rooms under management with their managed Wi-Fi solution. Windstream notes close approaching deadlines for school systems who want to take advantage of this E-rate program. Schools and libraries must meet the upcoming Form 470 application deadline of February 26, followed shortly after by the Form 471 deadline of March 26. With $1 billion per year at stake in support of Wi-Fi connectivity (or other LAN technologies) in the schools, I suspect other carriers are actively pursuing this opportunity as well.

Dish's Ergen: Video will be 'core' to any wireless offering, open to working with T-Mobile and others

Dish Network wants to use its wireless spectrum to launch an innovative mobile video service, and is willing to partner with companies both in and out of the wireless industry to do so, according to Dish Chairman Charlie Ergen. The key to any teaming would be that Dish and its partner should be able to accomplish more together than they could apart, he said. Ergen said that Dish's Sling TV over-the-top video service is part of a strategy to take video into the mobile realm because that is how "the next generation is going to watch television." Ergen said any Dish wireless offering will include video "at its core" "And if that's going to happen then we have to have the infrastructure to do that," he said.

T-Mobile CEO John Legere praised Dish during the carrier's quarterly conference call with investors, and hinted he would be open to working with Ergen. "I think Dish is a great opportunity, both for the country and for possibly T-Mobile," he said. Ergen returned the compliment. He said T-Mobile "is a company we think highly [of]. I mean it's hard not to be impressed with what they've been able to accomplish in the last couple of years." However, while he praised T-Mobile's focus on the needs of consumers, Ergen made clear Dish is not wedded to working with any one company right now. "Ultimately, companies get strategically aligned and there becomes a will to do something together better than what they can do individually," he said.

House Communications Subcommittee Schedules Hearing on FCC Budget

The House Communications Subcommittee has scheduled a hearing for March 4 on the Federal Communications Commission's 2016 budget request. “Is the FCC best positioned to handle the challenges of the innovation era? Americans’ demand for state-of-the-art communications and technology platforms for interacting and conducting business continues to grow," said House Communications Subcommittee Chairman Greg Walden (R-OR) in announcing the hearing. "This hearing is a part of our ongoing effort to modernize the federal government and ensure that the FCC has the tools to transparently and efficiently carry out its mission on behalf of the American people.”

Promising Faster Wireless, Artemis Draws Closer With Dish Spectrum Deal

Artemis Networks, a start-up that says it has created a technology for increasing the speed and reliability of wireless networks, is getting closer to bringing that service to the public. The start-up, which first announced its technology in 2014, said it planned to lease wireless spectrum from Dish Network, the satellite television provider, for up to two years. It will use the spectrum to introduce a wireless Internet service in San Francisco (CA). The deal still needs approval from the Federal Communications Commission. Steve Perlman, the chief executive of Artemis, said he hoped to start the service in San Francisco by the fall of 2015.

Wall St. and Law Firms Plan Cooperative Body to Bolster Online Security

The threat of ever-larger online attacks is bringing together Wall Street banks and the big law firms that do work for them in an alliance that could result in some sharing of basic information about digital security issues. For nearly a year, banks and law firms have discussed setting up a legal group that would be affiliated with the banking industry’s main forum for sharing information about threats from hackers, online criminals and even nation states -- the Financial Services Information Sharing and Analysis Center. Several people briefed on those discussions said those talks would most likely lead to the establishment of such a group by the end of 2015, a recognition that hackers are increasingly focusing on big law firms to glean information about their corporate clients.

Benton

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