April 2016

Broadband Data Caps Pressure ‘Cord Cutters’

Data limits once seemed like a problem confined to smartphones. But millions of Americans are facing them in their living rooms as their home Internet providers require them to ration Web usage or pay surcharges. That is a threat to Netflix and video upstarts that depend on broadband to deliver their service.

Fearful of crossing data limits, some customers say they are canceling the streaming services, including Netflix, Sling TV and Sony PlayStation Vue. Many have complained about it to federal regulators: Consumer complaints to the Federal Communications Commission about data caps rose to 7,904 in the second half of 2015 from 863 in the first half. As of mid-April, this year’s total was 1,463.

Apple No Longer Immune to China’s Scrutiny of US Tech Firms

Apple’s iBooks Store and iTunes Movies were shut down in China, just six months after they were started there. Initially, Apple apparently had the government’s approval to introduce the services. But then a regulator, the State Administration of Press, Publication, Radio, Film and Television, asserted its authority and demanded the closings, according to two people who spoke on the condition of anonymity.

“We hope to make books and movies available again to our customers in China as soon as possible,” an Apple spokeswoman said.

The about-face is startling, given Apple’s record in China. Unlike many other American tech companies, Apple has succeeded in introducing several new products — like its mobile payments system Apple Pay — in China recently. New resistance from the Chinese government to that expansion could potentially hurt the company. To a degree more than many tech companies, Apple relies on the smooth operation of its software — including its App Store and services like iTunes, which are tightly integrated with the iPhone and iPad — to keep customers coming back to its devices. Apple, which is facing a slowdown in sales of its iPhones, is also reliant on China for growth, so further moves by Beijing to curtail services could crimp sales.

Reid Fears Career of FCC’s Rosenworcel Will End Prematurely

On April 21, Senate Minority Leader Harry Reid (D-NV) bemoaned how long it has taken Senate Majority Leader Mitch McConnell (R-KY) to schedule a confirmation vote for Federal Communications Commission Democratic Commissioner Jessica Rosenworcel for her second term at the agency. “I spoke with him yesterday on the telephone, again urging him to move her forward and he said to me, ‘We’ll do it next year,’” Minority Leader Reid said in a floor speech. “Next year, she’s out of a job. Her term expires at the end of this year. Her career will basically be over because of my accepting my counterpart’s word.”

Minority Leader Reid’s speech served as an opportunity for him to air his grievances about false promises. He said he felt offended by a “personal affront.” The Nevada Democrat spoke of how Majority Leader McConnell has promised for a few years that the Senate would vote to confirm Commissioner Rosenworcel. FCC Chairman Tom Wheeler applauded Minority Leader Reid’s call to confirm Commissioner Rosenworcel. “I was pleased to see Senator Reid’s comments today on the floor,” Chairman Wheeler said in a statement. “Jessica Rosenworcel is an integral part of this Commission and should be confirmed. All nominees, no matter their party affiliation, deserve an up or down vote.”