June 2015

Advocates press House appropriators not to 'gut' Internet rules

More than 60 advocacy groups sent a letter to the House Appropriations Committee urging the panel to remove provisions from a spending bill that would "gut" new network neutrality rules. "We are deeply concerned that the [Federal Communications Commission]’s public process would be undermined by these appropriations measures, threatening our First Amendment rights and the Internet economy," the groups wrote in the letter sent to Chairman Hal Rogers (R-KY) and Ranking Member Nita Lowey (D-NY).

The appropriations panel is slated to markup the Financial Services and General Government appropriations bill on June 17, which, among other things, would bar the agency from implementing new net neutrality rules until a court battle is resolved. The bill would also ban the agency from regulating the rates of Internet service -- something the FCC has said it will refrain from doing -- and would force the agency to publicly post any regulations for 21 days before they are considered in the future. The groups said net neutrality, the idea that all Internet traffic should be treated equally, is "under attack by a handful of monopoly-minded" telecommunication companies. Groups like Public Knowledge, Free Press, Demand Progress, The American Civil Liberties Union and the Electronic Frontier Foundation signed the letter. Etsy, a strong supporter of the rules, was one of the few companies to join.

Time Warner Cable Threatened With Net Neutrality Complaint

Web hosting company Commercial Network Services says it plans to file a peering complaint against Time Warner Cable under the Federal Communications Commission's new network neutrality rules unless the company strikes a free peering deal as soon as possible. TWC says its interconnection policy is just and reasonable and is confident the FCC would reject any complaint based on the idea that "every edge provider around the globe is entitled to enter into a settlement-free peering arrangement." In the complaint, according to CNS CEO Barry Bahrami, CNS plans to ask 1) that TWC be ordered to strike a settlement-free deal and 2) that other broadband Internet service providers using any public exchanges be required to adopt an "open peering" policy.

In its new rules, which took effect June 12, the FCC created a case-by-case complaint process for interconnection issues alleged to impede an open Internet. It is the first time that peering/interconnection deals have fallen under the FCC's net neutrality rules since having been reclassified under Title II common carrier regulations. Some cable operators were looking for Cogent or Level 3 or Netflix to complain, but whoever it was, they were expecting complaints from those not eager to pay for interconnections. Since there is no bright-line rule on what is a reasonable interconnection agreement, cable operators won't know exactly what the FCC considers impeding an open Internet until the FCC has investigated and acted on such complaints, though TWC sounded confident this complaint was meritless.

Level 3: No Net Neutrality Complaints... Yet

Internet backbone service provider Level 3 is echoing Cogent in its approach to the Federal Communications Commission's new network neutrality enforcement regime, which for the first time includes interconnection issues. That approach is to leave open the option of filing a complaint as it continues to negotiate with companies it has yet to strike deals with. "We are pleased the Open Internet rules are now the law," said Mike Mooney, senior vice president and general counsel of regulatory policy for the company. "We are likewise pleased that we have been able to recently reach and announce mutually beneficial interconnection agreements with industry partners like Verizon, AT&T and Comcast that focus on a growing, secure and resilient interconnection architecture." "Agreements like these are good for the Internet and American consumers," he added.

But that was not the end of the story. "Unfortunately, we have not yet reached agreements with everyone," he added, though he suggested those were outliers that needed to get with the program. "If an ISP refuses to add the necessary interconnection capacity required to prevent consumers from suffering bad online experiences," he said, "we will have little choice but to make the FCC aware of it, particularly since such conduct would be inconsistent with the behavior of the rest of the industry."

Google Is Its Own Secret Weapon in the Cloud

Google is wielding a new weapon against Amazon and Microsoft for cloud computing customers: itself. Google is talking more openly about companies that use its cloud business, and revealing more about its computing resources, perhaps the largest on the planet. These include disclosures about Google’s ultrafast fiber network, its big data resources, and the computers and software it has built for itself. The aim is to position Google as a company capable of handling the biggest and toughest computational exercises, lightning fast. The disclosures follow earlier moves by Google Cloud Platform, as the search company’s cloud computing business is called, to show off its data analysis capabilities. Details like the ability to pass information between Europe and the United States in less than 100 milliseconds, and a practice of fully backing up user data in nine different locations, make Google seem both cutting-edge and even bigger than most people suspected.

But the company may also be borrowing a playbook from Amazon Web Services, which in 2013 started disclosing some mind-blowing metrics about its global computing network. At an event for Google Cloud Platform -- Google’s name for the computing, storage and networking it sells to business -- Google will name the Taiwanese phone maker HTC as a customer. HTC has used Google to build a new kind of computing architecture that enables smartphone apps to update data fast and reliably to many devices at once, and look efficient even when the phones get poor reception. On June 17 a senior Google executive is expected to give what the company says will be an unprecedented look at the overall Google network design. This includes key tools that enable large-scale management of computing devices across the globe, according to one customer.

Rupert Murdoch to Hand Over CEO Reins July 1

In what was one of the worst kept secrets in a medium not known for keeping secrets, 21st Century Fox chairman and CEO Rupert Murdoch will officially hand over the CEO reins to his son James on July 1, with his other progeny Lachlan Murdoch assuming the role of co-executive chairman.

In a statement on June 16, 21st Century Fox said that current chief operating officer Chase Carey will become executive vice chairman and serve in that role through June 30, 2016. Both James and Lachlan have been groomed for top spots at the company for years and are expected to work together in partnership running the company. The elder Murdoch, who at 84-years old is still in good health and a common presence around the office, is also expected to continue to be heavily involved in decision making at the company.

Trust in American news media remains low

The latest terrible, horrible, no good, very bad, not-at-all-surprising news from Gallup: Americans' confidence in most major US institutions remains below the historical average for each one. Only the military (72 percent) and small business (67 percent) -- the highest-rated institutions in 2015's poll -- are currently rated higher than their historical norms, based on the percentage expressing "a great deal" or "quite a lot" of confidence in the institution.... Americans' confidence in most major institutions has been down for many years as the nation has dealt with prolonged wars in Iraq and Afghanistan, a major recession and sluggish economic improvement, and partisan gridlock in Washington.

In fact, 2004 was the last year most institutions were at or above their historical average levels of confidence. Perhaps not coincidentally, 2004 was also the last year Americans' satisfaction with the way things are going in the United States averaged better than 40 percent. Currently, 28 percent of Americans are satisfied with the state of the nation. Confidence in newspapers is currently at 24 percent, eight points below the historical average. Television news is at 21 percent, nine points below the historical average.

Hillary Clinton is crushing Jeb Bush on Facebook

[Commentary] It's presidential campaign launch season, and Facebook has tracked reactions to each candidate's official announcement since Sen Ted Cruz (R-TX) became the first major candidate to jump into the race in March. The figures include all interactions (likes, posts, comments, shares), positive or negative. They're less an indication of how popular someone is than of how much interest there is in them, from either side.

With numbers now in for Jeb Bush's announcement, Hillary Clinton is far, far ahead: In the 24 hours surrounding Hillary Clinton's announcement on April 12, 4.7 million people produced 10.1 million interactions on Facebook. Sen Cruz is a very distant second, with 2.1 million people creating 5.5 million interactions, about half of Hillary's performance. The number of people liking, commenting, posting, and sharing in the 24 hours around an initial campaign announcement isn't likely to tell you much about who's going to win in the end. But it does tell you a little bit about the degree of public interest (again, positive or negative) at the campaign's outset. And it doesn't look like people care all too much about Jeb Bush.

Rural New York Broadband Project Hailed for Unique Collaboration

The effort to bring broadband Internet service to rural areas of Niagara and Orleans counties in New York could be accomplished at an initial cost of $2 million to $3 million, although the total cost could range up to $5 million, Niagara County lawmaker David E. Godfrey said. Godfrey and his partner in the effort, Orleans County Legislature Vice Chairwoman Lynne M. Johnson, were honored on June 11 at a state broadband summit in Albany (NY) for leading the most collaborative broadband project in the state.

Godfrey said the Niagara-Orleans Regional Alliance has zeroed in on one contractor to install the rural broadband facilities, although he said the identity of the company would not be released until all the paperwork is signed, including a commitment from the office of Gov. Andrew M. Cuomo (R-NY) to allow state “smart schools” funds to be applied to the project. If that money, which was intended for technology projects in schools, legally can be applied to the proposal, it would cover half the expense, Godfrey said. The program envisions the use of the money for rural broadband projects led by school districts, not by counties. The state has allocated $13.7 million in smart-schools aid to districts whose communities are taking part in the Niagara-Orleans broadband effort.

AT&T Plugs ‘GigaPower’ Into MDUs

AT&T said it is working with property owners, management groups and developers on deals that would clear the way for the telecommunication company to deploy its fiber-based “GigaPower” platform to apartments and other types of multiple-dwelling units (MDUs). AT&T said the plan, which would expand the reach of its 1 Gbps-capable service, is to focus initially on areas where GigaPower is launched or will soon be launched: Atlanta (GA), Chicago (IL), Austin (TX), Dallas (TX), San Antonio (TX), Fort Worth (TX), Houston (TX), Charlotte (NC), Winston-Salem (NC), Raleigh-Durham (NC), Greensboro (NC), Cupertino (CA), Jacksonville (FL), Miami (FL), Kansas City (MO), Nashville (TN), and St. Louis (MO). AT&T said its Connected Communities team is working with property owners and managers who are interested in bringing this service to their location, and has outlined three steps:

Evaluation: Nominate property for GigaPower consideration at www.att.com/fiberproperties.
Design: AT&T engineers will develop a fiber overbuild design of the legacy network to be approved by selected property stakeholders.
Deploy: Once a deal is reached, AT&T will install the GigaPower network.

Cablevision Systems CEO: Data Outperforms Video 7:1

Connectivity has become cable’s number 1 product, Cablevision Systems CEO James Dolan said, adding that as video margins dwindle, providing a speedy and reliable pipe to access content and other services will become essential to cable company survival. Doan said that data service outperforms video at his company by a 7-to-1 margin, and as high-speed Internet customers surpass video subscribers, operators have to shift the way they approach the business.

"Connectivity has really become our No.1 product. It’s no longer video. …That actually is a significant change to the model,” Dolan said. “We recognize that the connectivity experience we offer is going to be crucial to being able to keep the customer and be able to maintain margins and monetize.” Dolan pointed to Cablevision’s Wi-Fi service, currently available through more than 100,000 public hotspots in its service territory and more than 1.2 million when residential routers are included. He added that customers regularly use the Wi-Fi service to cut down on data usage on their cell phone plans, a benefit that Dolan said the industry needs to better communicate to customers.