June 2015

Chairman Wheeler Response to Senator Franken Regarding Charter Communications' Proposed Merger

On May 26, 2015, Senator Al Franken (D-MN) wrote to Federal Communications Commission Chairman Tom Wheeler and Attorney General Loretta Lynch to ask that they carefully review Charter Communications' proposed merger with Time Warner Cable and acquisition of Bright House Networks to determine whether these transactions are in the best interest of the American public.

On June 16, 2015, Chairman Wheeler responded by writing, "The Commission will evaluate whether the proposed merger is in the public interest. Our analysis takes several factors into account, including the issues noted in your letter: the impact on consumers and competition....While I am unable to discuss the merits of this particular proposal, I can assure you that the Commission will be conducting an open and transparent process as required by FCC rules and regulations. After developing a full and complete record, we hope to conclude our review as quickly as possible."

Enabling competition from Google Fiber means FCC must reconsider pole attachment pricing

[Commentary] Google Fiber's plans to bring its 1 Gbps service into Salt Lake City (UT) and Nashville (TN) by using existing utility poles in each city not only sheds light on its ongoing buildout strategy, but also shows how important access to utility poles at reasonable rates is key to expanding broadband services. In Salt Lake City, Google will deploy 600 miles of fiber, which will be attached to more than 20,000 utility poles which will then be attached to a point of presence on the ring. The Nashville fiber deployment will have a similar configuration as Salt Lake City, with some differences. It plans to deploy 3,200 miles of fiber, install 18 fiber huts, and attach fiber to at least 100,000 utility poles. While the service provider did not reveal the terms of the agreements, the Internet company has cited gaining rights of way to utility poles as a key issue in what cities it will target with its 1 Gbps service.

Despite the challenges service providers face, industry associations are working to ensure the FCC is paying attention. COMPTEL, the advocacy group for competitive providers, recently filed a joint petition with Level 3 Communications asking the FCC resolve the lingering issue over pole attachment rates for cable and telecom providers. The two commenters asked the FCC to grant the pending petition for reconsideration of the regulator's 2011 Pole Attachment Order. While the FCC has a lot on its plate in 2015, including court challenges to its new net neutrality rules and a host of multibillion-dollar acquisitions to review, if they're serious about driving competition they need to make the pole attachment issue a priority.

AT&T to spend $3 Billion to cover 100 Million Mexicans with LTE by 2018

AT&T said it will spend $3 billion during the next four years to cover 100 million people in Mexico with LTE by the end of 2018. AT&T said the first phase of its LTE network buildout will be complete by the end of 2015 and will cover 40 million Mexicans, which the carrier said represents about one-third of the country's population. By the end of 2016, AT&T said it plans to cover 75 million people, or nearly two-thirds of the population.

According to GSMA Intelligence, the research unit of the GSMA trade association, only about 35 percent of POPs in Mexico were covered with LTE as of the first quarter of 2015. The firm said 95 percent of POPs were covered with 3G. Separately, AT&T also announced it will offer new plans to its existing Mexican customers "that take advantage of the company's North American Mobile Service Area." The carrier said the new plans will allow its Mexican customers to use their voice, data and text messaging services while in the United States. "Customers on these new plans will also be able to use their available community minutes to call friends and family in the US who are on the AT&T network," the carrier said. The operator also said it will offer Google Play billing in Mexico for Android smartphone users -- the service allows customers to purchase Android apps, books, movies, music and games and have the cost added to their monthly AT&T wireless bill.

Be Careful What You Wish For: Why Europe Should Avoid the Mistakes of US Internet Access Policy

Over the last few years, policy makers in the European Union have elevated the digital agenda to the highest tier of regional objectives. To reach certain goals, EU policy makers have looked at the results in the US high-speed Internet access market to find insights and alternative regulatory approaches. This policy brief offers a summary analysis of data from the US and EU high-speed Internet access markets to highlight the relationship between policy choices and market outcomes. Our purpose is to debunk the mythology about the robust success of American high-speed Internet access policy and to support clear-eyed decisions in Brussels that will foster a robust Digital Single Market.

Far from reversing course and following the US down the road to divided markets, high prices, and sluggish upgrades, the EU has the opportunity to continue promoting the competitive market framework that has served European consumers well. The goal of policy in this arena, after all, is not investment for its own sake but, rather, investment within the context of a competitive market that prompts the delivery of better services and spurs greater adoption. Most importantly, adoption should be the primary objective, because that is what drives widespread economic activity. But without the lower prices for better services that competition will bring, adoption will not increase. This competitive framework also has the virtue of better promoting the creation of new digital businesses and thus supporting European innovation.

T-Mobile vows to keep up fight on wireless auction rules

T-Mobile pledged to fight Federal Communications Commission Chairman Tom Wheeler’s recommendation against increasing the amount of wireless spectrum reserved for smaller carriers in an upcoming auction. "I am asking you to reconsider and stand strong for American consumers,” CEO John Legere wrote in a letter to the FCC. He added that he “will continue to fight on behalf of all wireless consumers.” “This decision is too important to the future of competition for me to ignore,” said the outspoken T-Mobile chief. “Consumers deserve choice.”

The FCC has set aside 30 megahertz of wireless spectrum, the airwaves that carry signals to mobile devices, exclusively for smaller wireless carriers like T-Mobile. That move was aimed at keeping AT&T and Verizon from dominating the auction. But T-Mobile requested that spectrum reserve spectrum be increased to 40 megahertz, which it says would allow more than one small provider to compete in every market.

Chairman Wheeler's Response To Rep Chabot Regarding Small Business Participation in AWS-3 Auctions

On June 8, 2015, House Small Business Committee Chairman Steve Chabot (R-OH) wrote to Federal Communications Commission Chairman Tom Wheeler regarding small business participation in AWS-3 Auctions, expressing that reports about small companies being squeezed out of the bidding on spectrum licenses in the auction were troubling.

On June 17, 2015, Chairman Wheeler responded by saying that two AWS-3 bidders Chairman Chabot discussed are having their applications reviewed by the FCC's Wireless Telecommunications Bureau. Chairman Wheeler also wrote, "In addition to adjudicating individual license applications, the FCC is engaged in a more general effort to address the role of small businesses in spectrum auctions...It is my expectation that any new rules that are adopted will both reflect the dynamics of the current spectrum marketplace, and fulfill our statutory obligation to ensure that small businesses, rural telephone companies and minority and women-owned businesses have the opportunity to compete in spectrum auctions."

Chairman Wheeler's Response to Sen Warner Regarding Selection of Local Number Portability Administrator

On March 25, 2015, Sen Mark Warner (D-VA) wrote to Federal Communications Commission Chairman Tom Wheeler regarding the selection of a Local Number Portability Administrator (LNPA), expressing concern with the management of national, state, and local security and potential transition issues.

On June 12, 2015, Chairman Wheeler responded by referring to an Order that was unanimously approved with the recommendation to move forward with the contract negotiations with Telcordia Technologies, Inc., to serve as the next LNPA. Chairman Wheeler wrote, "Importantly, the Order requires Telcordia to comply with specific conditions to ensure that it serves as a neutral administrator and Telcordia's service conforms with national security and law enforcement needs. Furthermore, the negotiated contract will be subject to Commission review to ensure that the neutrality and security requirements are fully satisfied." Chairman Wheeler added that, "Again, this Order is only one important step toward implementing a new contract. There is more to do. we will continue to engage law enforcement and national security experts as we look at the post-selection process to ensure that those concerns are appropriately addressed."

The Digital Dividend: a revolution in technology

[Commentary] On June 17, 2015, International Telecommunication Union held the International Symposium on the Digital Switchover, a special event to mark the deadline for the Digital Switchover in ITU Region 1 (Europe, Africa, the Middle East and Central Asia) and the Islamic Republic of Iran, heralding the development of ‘all-digital’ terrestrial broadcast services for sound and television for 119 countries. The resulting digital dividend has opened the way for new innovations and developments in the broadcast industry, with consumers able to access a range of new services and programming.

Christoph Dosch, Chairman of ITU-R Study Group 6, is an expert in the field of broadcasting, and was asked about the switchover from analogue to digital broadcasting and how this will affect consumers. Dosch said, "The Digital Dividend is the result of a revolution in technology. It is the result of going from analogue to digital broadcasting, and there are two elements to it. Consequently, the same number of programmes can be broadcast using fewer channels -- and that is the Digital Dividend. The part of the electromagnetic spectrum that is used for broadcasting can be reduced to some extent. Of course, if the spectrum available to broadcasters is reduced, it means that the number of possible broadcasting services per service area are also reduced as the total capacity for broadcasting is reduced."

Americans' Internet Access: 2000-2015

The Pew Research Center’s unit studying the Internet and society began systematically measuring Internet adoption among Americans in 2000. Since then, Pew Research has conducted 97 national surveys of adults that have documented how the internet has become an integral part of everyday life across diverse parts of society. For young adults, Americans with high education levels, and those in relatively affluent households, Internet penetration nears full saturation levels. The report finds that, in 2000, 70 percent of those ages 18-29 used the Internet, and that figure has steadily grown to 96 percent in 2015. In contrast, 14 percent of seniors used the internet in 2000, while 58 percent do so today. In addition, almost all adults (95 percent) with a college or graduate degree say they are internet users, and 97 percent of those who live in households earning more than $75,000 are also online. “There are two broad trends in these data,” says Maeve Duggan, Research Associate at Pew Research Center. “The first is that the groups traditionally leading the way in tech adoption -- the young, highly educated and relatively well off – are now nearly all Internet users. The second is that groups traditionally less likely to be early adopters have steadily increased their Internet use. Especially in recent years, the rate of adoption has been particularly rapid. However, digital differences still remain.” Other findings include:

  • African-Americans and Hispanics have been somewhat less likely than whites or English-speaking Asian-Americans to be internet users. Today, 78 percent of blacks and 81 percent of Hispanics use the Internet, compared with 85 percent of whites and 97 percent of English-speaking Asian Americans.
  • Men and women have had rough parity in Internet adoption since 2000. Today, 85 percent of men and 84 percent of women report being Internet users.
  • Those who live in rural areas are less likely than those in the suburbs and urban areas to use the Internet. In 2000, 56 percent of suburban residents, 53 percent of urban residents and 42 percent of rural residents were Internet users. Today those figures stand at 85 percent, 85 percent and 78 percent respectively.

FCC again signals no plan to require political ads to name top donors

Federal Communications Commission Chairman Tom Wheeler again signaled his agency is not focusing on a Democratic push that would require some political ads to name the top donors behind them. Chairman Wheeler, instead, pointed to another FCC proposal that would expand an online database that includes information about political advertising buys around the country.

"Currently, the commission is concentrating its resources on a proceeding to expand the online file requirements to cable operators, satellite TV providers, broadcast radio licensees, and satellite radio licensees," Chairman Wheeler wrote in a letter to Senate Commerce Committee Ranking Member Bill Nelson (D-FL), who has pushed for increased disclosure in political ads. "The expanded rules, if adopted, will bring sunlight to political advertising, ensuring that the public has access to the political files of all broadcasters and [satellite and cable companies], not just television broadcasters," Chairman Wheeler added.