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  2. July 2017

July 2017

Net Neutrality And Smart Pipes: The Game Is Changing For Verizon Wireless, O2 And Others

[Commentary] As wireless broadband carriers transition what was once referred to as “dumb pipes” to a richer content delivery system, the subject of net neutrality is becoming about as hot as the surface of the sun.

OTT or Over-the-Top content delivery will only continue to skyrocket through the carriers. Subscribers want their television, movies and music all on-the-go, and the continued marketing of unlimited data plans will continue that momentum. Instead of making thinly-veiled excuses or outright violation of net neutrality rules, the carriers will need to ensure network optimization for video consumption. 5G will help with lower latency and dramatically improved throughput but we are still 18 to 24 months away from a ubiquitous deployment. If the tier one global carriers don’t address it now, they will certainly suffer from subscriber loss, lower revenue and dwindling margins.

[Will Townsend is a Moor Insights & Strategy senior analyst covering wireless telecommunications and enterprise networking]

Verizon says pole attachment reforms should not be tied to union agreements

Verizon is taking a different view on the one-touch make-ready (OTMR) proposals being considered by the Federal Communications Commission, saying that any new rules should not be driven by the labor agreements carriers have with unions like the Communications Workers of America (CWA). In an FCC filing, the service provider said that developing OTMR rules that are in line with labor agreements could cause issues for providers seeking access to poles. “The commission should not tailor its OTMR rules to specific companies’ particular collective bargaining agreements,” Verizon said in the filing. “That approach would result in a patchwork of rules that might be subject to change every few years and would be administratively unmanageable for new attachers.” This is different than the position that has long been held by fellow telecommunication companies AT&T and Frontier.

Discovery Communications Agrees to Buy Scripps Networks

Discovery Communications has agreed to acquire Scripps Networks Interactive for $11.9 billion, combining two powerhouses of nonfiction television programming at a time of major upheaval in the cable-TV business. The tie-up is a bet that bigger is better as the television industry is upended by cord-cutting and the rise of “skinny” online TV bundles from the likes of Hulu, YouTube, Sling TV and others. The thinking is that a broader portfolio of channels that specialize in nonfiction and lifestyle programming like travel, food and nature could appeal to younger viewers and give the combined company a leg up in negotiations with advertisers and programming distributors.

The deal will create a must-buy network group for advertisers interested in targeting women and help the network command more premium ad rates. Of the top 20 US cable networks, the merged company will control four of the top five with the highest percentage of female viewers—TLC, HGTV, Investigation Discovery and Food Network. Discovery said it would be able to expand Scripps’s channels into more overseas markets, which could help generate significant additional revenue. The combined company is also touting its short-form video production, which will help it gain more viewers and ad dollars on social-media platforms. The deal could put pressure on other media companies, from AMC Networks to Viacom Inc., that must defend their turf on the cable dial.

Brendan Carr Omitted Critical Facts in His Testimony to Congress: He Worked for AT&T, Verizon, Et Al.

[Commentary] In his written testimony to Congress, Brendan Carr, who has been nominated to be the third Republican Commissioner on the Federal Communications Commission, omitted the most important fact: He worked for AT&T, Verizon, Centurylink, as well as the CTIA, the wireless association, and the USTA, the telephone association. Moreover, much of this work has direct ties to his current work with FCC Chairman Ajit Pai (a former Verizon attorney). Together they have amassed a string of corporate-monopoly friendly, harmful consumer regulations that have passed or are percolating.

In the end, Carr and Pai clearly show that they are still working for the industry, not the public interest. On top of this, there are even holes in Carr’s work timeline, as told by his own LinkedIn bio. His resume shows he clerked for a judge in the 2008-2009 timeframe, while his bio shows him also working from 2005-2012 for Wiley Rein and the telecommunications companies and their associations. All of this should be a deal breaker. The Senate should not confirm Brendan Carr’s nomination as FCC Commissioner.

[Bruce Kushnick is the executive director of New Networks Institute]

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