May 2015

FCC Chairman Wheeler Circulates Effective Competition Order

Federal Communications Commission Chairman Tom Wheeler has circulated the FCC's order on effective competition, and it apparently still proposes reversing the presumption that local markets are not competitive when it comes to traditional video. The FCC has a June 2 congressional deadline to produce an order streamlining the effective-competition process for smaller, particularly rural-serving cable operators, but broadened that into the proposal to reverse the presumption given that it has not denied an effective competition request in a couple of years -- due largely to the presence of satellite-TV service nationwide.

A ruling of effective competition means a cable system is no longer subject to basic-tier rate regulation and the requirement to carry retransmission stations in that tier. Broadcasters have been pushing back hard on the proposal, as have a number of high-profile Democratic senators and public interest groups, as well as the local franchising authorities that will lose rate-regulation authority.

FCC: NAB CVAA Waiver Still Pending

The Federal Communications Commission has yet to rule on the National Association of Broadcasters request that the FCC give broadcasters more time to comply with a Communications and Video Accessibility Act (CVAA) requirement to convert emergency alert text in now-news programming accessible to the sight-impaired. An FCC spokesperson confirmed May 21 that decision is still pending. Broadcasters have a May 26 deadline to provide aural representations of visual emergency information -- crawls, radar images -- on a second audio stream.

NAB, joined by broadcast engineers, told the FCC broadcasters can't meet that deadline. NAB has asked the FCC for a temporary exemption until November, because it says the software needed to aurally transcribe crawls has not been supplied yet by vendors in some cases; also, they say, more time is needed for testing and shipping. The NAB also wants more time to translate graphics into speech because radar maps and other moving graphic images do not contain text files that can be converted. In other words, “The ability to comply with the requirement,” the association says, “does not exist now.”

Chairman Wheeler suggests FCC has no plans to act on political ad disclosures

Federal Communications Commission Chairman Tom Wheeler suggested the FCC currently has no plans to act on its own to strengthen political ad disclosure requirements. After an open meeting, Chairman Wheeler said the FCC's focus will be the many telecommunications issues currently on the FCC's plate. "Well if the Congress acts, then we will clearly follow the mandate of Congress," Chairman Wheeler said. "And maybe you noticed, we have a long list of difficult telecommunications related decisions that we are dealing with right now. And that will be our focus."

FCC Chairman Wheeler Does Not See AWS-3 Re-Auction

Federal Communications Commission Chairman Tom Wheeler said he thought the FCC's decision, one way or the other, about whether Dish-connected designated entities (DEs) deserved $3 billion in bidding credits (discounts) in the AWS-3 auction would delay the upcoming incentive auction. He was asked whether a decision against Dish and the DE's could mean having to re-auction the spectrum, and thus potentially delay the planned early 2016 broadcast incentive auction.

Chairman Wheeler said he did not think there would be a delay of the incentive auction, saying that the "question that exists" in the AWS-3 auction is the DE discount. "If there is a decision made that that is inappropriate," he said, "the issue is $3 billion more dollars" rather than re-auctioning the spectrum. He later conceded that the ultimate penalty -- some have suggested Dish and the DE's colluded, though Dish and those DE's have said the rules clearly allowed their collaboration -- could be re-auctioning the spectrum, but he said that "the rules as they stand right now are: 'pay three billion dollars more.'"

Telecom Deals Are Back as Billionaires Jostle to Expand Empires

If you thought telecommunications deals were losing steam, think again. The move by Patrick Drahi’s Altice SA to take control of $9.1 billion US cable company Suddenlink Communications may herald a revival of mergers and acquisitions involving Europe’s biggest telecommunications players. Fellow billionaires, including Liberty Global Plc’s John Malone, also look ready to jump on the M&A bandwagon. If they act soon, it would mark a swift turnaround for dealmaking in the industry. Before May 20, the volume of transactions involving European communications companies had fallen by about 45 percent in 2015 compared to the same period in 2014.

While the start of 2015 may have been slow, transactions are about to speed up, said Yvan Desmedt, a partner at law firm Jones Day in Amsterdam. “We are poised to see a lot more deals in coming months,” Desmedt said. “Telecoms is an industry where size really matters.” Amid increasing price competition and pressure to maintain profit growth, phone operators from Europe and Asia to the US and Latin America are growing via acquisitions while cheap financing is available. At the same time, phone companies are competing to provide packages that combine mobile, broadband, fixed-line and TV offerings as they try to tempt new customers.

Fan streaming apps have sports world debating TV rights

Ask big names in the sports business what's on their mind, and live streaming by fans is one of the first things they'll mention. Television, with its ever-escalating contracts, increasingly finds itself competing against new technologies such as live-streaming apps Periscope and Meerkat that threaten to disrupt the entire business model. Even Internet giants like Google may be entering the space. (Periscope is owned by Twitter, and CNBC's parent company Comcast is an investor in Meerkat.) Broadcasters, sports executives and athletes the Sports Business Journal's 2015 Sports Business Awards in New York on May 20 were of two minds when asked about fan streaming apps, with the old guard having bigger problems with the technology than the younger generation had.

2015 Rooftop Policy Roundtable
Phoenix Center for Advanced Legal & Economic Public Policy Studies
Tuesday, June 16, 2015
https://www.eventbrite.com/e/phoenix-center-2015-rooftop-policy-roundtab...

6:00 - 7:00: Drinks and Light Fare

7:00 - 7:15: Welcome and Brief Overview of Recent Research

7:15 - 7:45: Keynote Discussion with FTC Commissioner Maureen K. Ohlhausen

7:45 - 8:30: Panel Discussion:

  • Jim Halpert - Partner, DLA Piper;
  • Jules Polonetsky - Executive Director and Co-chair, Future of Privacy Forum;
  • Chris Soghoian - Principal Technologist, ACLU Speech, Privacy, and Technology Project; and
  • Robert Quinn - Senior Vice President, Federal Regulatory and Chief Privacy Officer, AT&T


FCC Takes Additional Steps to Make Emergency Information in TV Programming Accessible to Individuals Who are Blind or Visually Impaired

The Federal Communications Commission adopted rules to ensure individuals who are blind or visually impaired can quickly access critical information shown on television in the event of an emergency. In addition, the FCC seeks comment on other possible accessibility issues facing those who are blind or visually impaired. The new rules adopted required that emergency information be made accessible on a secondary audio stream on tablets, smartphones, laptops, and similar devices when subscription television providers, such as cable and satellite operators, permit consumers to access programming over their networks using an app on these devices.

When emergency information appears on a television screen, it is preceded by three tones. Under previously adopted FCC rules, individuals who are blind or visually impaired soon will be able to switch to a secondary audio stream to hear televised emergency information when they hear the three tones. This action takes this a step further: keeping pace with technological changes and the way consumers enjoy content. Additionally, the Second Report and Order establishes rules requiring that the equipment used to receive and pay back television programming, such as set-top boxes, have a simple and easy to use mechanism to switch from the main program audio to the secondary audio stream to hear audible emergency information.

Senate scrambles to save Patriot Act

Senators are scrambling to nail down a way to preserve critical National Security Agency programs before portions of the Patriot Act run out at the end of May. With just hours to go until the NSA begins to wind down its massive phone records collection program, the Senate is prepared to hold a rare weekend voting session to keep the Patriot Act alive. Senate GOP leaders have their backs up against the wall. Ahead of the prospect that three portions of the Patriot Act die, some Republicans seem inclined to allow for legislation that Majority Leader Mitch McConnell (R-KY) says would gut the NSA’s ability to protect the country. “There’s a lot of moving parts right now,” Sen Dan Sullivan (R-AK) said, after a 10.5-hour floor speech from Sen Rand Paul (R-KY) stretched late into the night. “I don’t think everybody's locked in.” Democrats appear united in support of an NSA reform bill called the USA Freedom Act, after Sen Bill Nelson (D-FL) reportedly said that he would support the bill.

Sen Markey: How often do police request cellphone data?

Sen Ed Markey (D-MA) said that he wants more information from wireless companies about law enforcement agencies’ requests for mobile phone data. In letters sent to seven wireless providers -- AT&T, Verizon, Sprint, T-Mobile, Cricket, US Cellular and C Spire -- Sen Markey asked them to disclose how many requests for data they received in 2013 and 2014. He also asked them to break the requests down by the type of data wanted, among other questions. It’s part of a continuing effort from Sen Markey to investigate how law enforcement agencies use cellphone data.

“Mobile phone data can be an important tool in law enforcement efforts to protect Americans, but we cannot allow the pervasive collection of this information, especially of innocent Americans,” he said. “As mobile phones have become 21st century wallets, personal assistants, and navigation devices -- tracking each click we make and step we take -- we need to know what information is being shared with law enforcement.” Sen Markey has also shown an interest in reports that federal officials use devices that act like cellphone towers in order to intercept communications emanating from a mobile phone. In his letters, he asked the wireless companies for the first time if they had received requests for the unique keys that could be used to decrypt data from a phone.