March 2015

Gov Beshear signs telecom deregulation bill

Gov Steve Beshear (D-KY) has signed legislation that limits Kentucky telecommunication companies' obligation to provide landline phone service.

Companies will be allowed to discontinue landline service in urban areas as long as they provide some type of phone service to those areas, such as wireless services or voice over Internet protocol. The companies will retain landline service for existing customers in rural areas, but they will not be required to provide it for new developments. Telecommunication companies say the measure will remove the financial burden of maintaining landline service, allowing them to invest instead in newer technology.

FCC Seeks Comment on Defining Commencement of Operations in the 600 MHz Band

In the Incentive Auction Report and Order, the Federal Communications Commission adopted rules to implement the incentive auction through which certain broadcast television spectrum will be repurposed for wireless flexible use to create the 600 MHz Band. These rules include procedures governing the transition of broadcast television services and other operations out of the 600 MHz Band. The procedures the FCC adopted permit certain operations to continue in the 600 MHz spectrum until a 600 MHz Band wireless licensee “commences operations” in its licensed spectrum. The FCC did not define the term “commence operations,” but indicated that it would do so in the pre-auction process. By this Public Notice, the FCC seeks comment on defining the term “commence operations” in the context of these transition rules.

FCC Proposes Satellite Television Market Modification Rules

The Federal Communications Commission proposed modifying satellite television market rules to enable satellite subscribers to gain access to in-state news and other programming that they currently are unable to receive.

The Notice of Proposed Rulemaking implements Section 102 of the STELA Reauthorization Act of 2014 (also known as “STELAR”). The proposal would, as Congress directed, create regulatory parity between satellite and cable television providers. The Commission proposes to apply the existing cable rule to the satellite carriage context, while adding rules to address the unique nature of satellite television service, such as giving carriers an exception if the resulting carriage is “not technically and economically feasible.” Market modification allows ‎the Commission, on request from a broadcaster or cable operator, to add or delete communities from a particular commercial TV broadcast station’s local television market to better reflect market realities.

The STELAR requires the Commission to issue final rules for satellite television market modification on or before September 4, 2015.

FCC Conditionally Approves Telcordia as the Next Local Number Portability Administrator and Authorizes Contract Negotiations to Begin

The Federal Communications Commission conditionally approved a recommendation that Telcordia Technologies Inc. serve as the next administrator of the service that allows consumers and businesses to keep their phone numbers when switching carriers, called “local number portability.”

Local number portability fuels competition by allowing consumers and businesses to choose their phone provider based on cost and service, without the inconvenience and expense of losing a familiar number. In addition to the porting of over 100,000 numbers a day, the capabilities built around local number portability are critical to public safety, law enforcement and consumer protection. The recommendation of Telcordia as Local Number Portability Administrator (LNPA) was developed following a multiyear, competitive process implemented by the FCC’s federal advisory committee on numbering, the North American Numbering Council, with oversight from the FCC. This process included extensive input from industry, consumers, and public safety and government entities, resulting in the recommendation of an experienced, qualified company to administer and keep the system secure. The Order does not award a contract. Rather, it authorizes contract negotiations between the NAPM (North American Portability Management, LLC), which is an industry consortium, and Telcordia. The negotiated contract will be subject to FCC review to ensure that the neutrality and security requirements are fully satisfied.

Will Net Neutrality bust the FCC’s budget?

At a House Financial Services and General Government Subcommittee hearing, members heard another round of testimony from the dueling duo of network neutrality: Federal Communications Commission Chairman Tom Wheeler and FCC Commissioner Ajit Pai. It was the fourth hearing in seven days during which Republicans have put the FCC’s order to reclassify Internet service as a utility under intense questioning.

The FCC is asking Congress for a 21 percent increase in its budget to account for a move of its headquarters, for consolidation of its field offices, and to improve its information technology infrastructure. But Republicans aren’t convinced an increase is in order, given the amount of time the FCC devoted to an order that they don’t like instead of spending its budgeted resources on Congressionally-mandated priorities. “We have kept your funding low for a few years in hopes that limited funding would push you towards prioritizing the most important work of the agency,” said Subcommittee Chairman Ander Crenshaw (R-FL). Rep. Kevin Yoder (R-KS) asked about how the FCC will deal with cost of litigation “when the big dogs sue” over the net neutrality order. “We maintain a litigation staff at the agency because no matter what we decide and whatever issue people turn around as they have a right to, and ask the court to review it,” said Chairman Wheeler. “The litigation staff is in place and that litigation staff would be used to handle it.” Commissioner Pai suggested there would be other costs to the net neutrality order besides litigation. “There are subsequent rule makings, the FCC order tees up a number of new regulations that will need to be adopted, the adjudication of complaints that might be filed at the commission, as well as any advisory opinions the enforcement is called upon to issue,” he said.

Sen Thune plots network neutrality budget amendment

Senate Commerce Committee Chairman John Thune (R-SD) is planning to introduce a nonbinding amendment on network neutrality.

His brief amendment would establish a deficit-neutral reserve fund “to preserve and protect the open Internet in a manner that provides the Federal Communications Commission with targeted and robust enforcement mechanisms..." At the same time, that measure “protects against regulatory overreach and does not rely on public utility regulations." Like all other amendments during Thursday’s expected marathon voting session, the measure is purely symbolic, non-binding and will have no force of law. However, it would be a chance for lawmakers to register where they stand on the rules.

Unnecessary Collateral Damage From FCC Title II Internet Regulation

[Commentary] The collateral damage is beginning to pile up from the Federal Communications Commission’s February decision to trigger Title II telephone utility regulation of the Internet.

Just as the FCC was not the final legal authority over Title II regulation of the monopoly telephone system, the FCC is not the final authority over what portions of the Internet ultimately will be captured by Title II regulations of “telecommunications.” That’s because any trial lawyer can sue to require that the FCC’s new re-definitions, like “telecommunications” to capture ISPs’ broadband service, be equally applied under the law to functionally similar services. The courts ultimately will decide much of this, creating potential litigation uncertainty for most every player in the Internet ecosystem.

If broadband is now telecommunications, IP addresses are now the legal equivalent of a phone number, and the Internet itself is now the Public Switched Telephone Network (PSTN) per the FCC’s Internet Order, then are any apps that involve telecommunications of any kind, such as instant messaging, VoIP, or video communications etc., Title II telecommunications as well? Are cloud service telecommunications analogous to broadband telecommunications? Are over the top video streaming providers like Netflix, Google-YouTube, Amazon, etc. offering the functional equivalent of a Title II regulated telecommunications service?

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

Minnesota’s Attorney General: Landline deregulation would raise prices, cut service

A proposal that would change how local phone companies are regulated at the Minnesota State Capitol is facing opposition amidst concerns that it would lead to higher prices and less service in rural areas. The bill's advocates say less regulation would allow them to stay competitive with newer technologies.

Attorney General Lori Swanson said the proposal that's being pushed by telecommunication companies would "eviscerate" 100 years of state law protecting consumers, including a requirement that phone companies provide access in far-flung rural areas. "We're very concerned that they'll just drop people who are too expensive to serve," Swanson said. "And we're very concerned that if they don't drop you, they'll say, 'Great, it will be $250 a month.'" The bills are opposed by former Minnesota Attorney General Skip Humphrey and Mike Hatch, who called it a "metro-centric" bill that would hurt the elderly and the poor.

Google searches show that millions of people wanted to vote but couldn’t

[Commentary] Fifty years after the passage of the Voting Rights Act, election laws are still in the news. Much of the recent attention has gone to court battles over voter ID laws. But other barriers to voting remain. Although some states allow voters to register right up to Election Day, others require registration as much as one month beforehand.

In the typical state in 2012, registration was closed for three weeks before the election. Some scholars argue that requiring early registration hurts voter mobilization in the final days of the campaign, when interest in the election is most intense. But skeptics counter that most of the people who fail to register in time have little real interest in voting. Our new research shows that there is a lot of last-minute interest. We estimate that keeping registration open through Election Day in 2012 would have allowed an additional 3 million to 4 million Americans to register and vote.

[Alex Street is an assistant professor of political science at Carroll College]

Obama’s Digital Double Down: Will His Pivot Away From Old Media Pay Off?

BuzzFeed, YouTube, InstaMeets -- recently, the politician who leapfrogged into the Oval Office seven years ago by capturing the mainstream media’s adoration has all but abandoned it in favor of dancing to the digital drum. Unburdened by having to win another election, President Barack Obama delivered a fiercely progressive State of the Union address in January, and instead of the traditional Steve Kroft “60 Minutes” follow-up interview or face time on the broadcast networks, the President spoke to YouTube stars with green lips and gracious grins. The President decided not only to pivot to digital media, but to have some fun doing it. And some of his interviews have run afoul of presidential precedent. The Presidential shenanigans worked and the video drew 50 million views on Facebook.

“I’m not some old-media curmudgeon saying Obama shouldn’t go on ‘Ellen,’ or ‘The View’ or Colbert; he’s got a good sense of humor -- that’s a political asset,” host of Fox News’ “#MediaBuzz” Howard Kurtz said. “But it just seemed beneath the dignity of the office to be hanging out with some of these YouTubers.” But, as Tubefilter founder Joshua Cohen said, Obama’s going where the people he’s trying to reach hang out.