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  2. August 2017

August 2017

Network Neutrality Behind Closed Doors

House Commerce Committee staff, as expected, met with interested parties on network neutrality legislation, but they wouldn't say which companies or groups showed up. Remember, the committee originally invited the CEOs of Facebook, Alphabet, Amazon and Netflix to testify at a hearing along with chief executives of the major telecoms, but later extended (apparently indefinitely) the deadline for them to respond.

"We are pleased that so many stakeholders in the internet and tech communities have provided substantive feedback in our efforts to protect a free and open internet," said committee spokesman Zach Hunter, declining to name attendees. "We look forward to continued progress and providing certainty for both businesses and consumers alike with a permanent, legislative solution." It's all part of a Republican effort to push forward a net neutrality bill, which has been stalled amid opposition from Democrats intent on keeping the fight focused on the Federal Communications Commission. According to the committee, Chairman Greg Walden (R-OR) still plans to hold a Sept. 7 hearing on the topic.

FCC Notches Win in Business Data Services

The 8th Circuit Court of Appeals handed a victory to the Federal Communications Commission when it refused to block the agency's regulatory changes to the business data services market from taking effect. The commission voted in April to relax regulations in the $45 billion market, finding that there was strong evidence of competition for the services, which provide connections for ATMs, hospitals and other institutions for high-volume data transmissions.

Sprint and several other organizations filed suit. Trade group INCOMPAS and the Ad Hoc Telecom Users Committee, an organization of major firms that buy telecom services, along with several others, asked the appeals court to stop the changes from taking effect. The court denied the request, along with a request from Sprint to transfer the case to DC.

New conservative media boogeyman: Sinclair

Opposition is coalescing against the $3.9 billion Sinclair-Tribune merger. Among the critics are smaller conservative media outlets. Conservative fears: Sinclair is famously right-leaning and some have speculated it could launch a Fox News competitor as its power grows. One America News Network President Charles Herring expressed concerns Aug 7 that a post-merger company could use its market power to give that kind of project a leg up over smaller competitors. Newsmax, another outlet on the right, has also expressed reservations about the merger.

Why it matters: Pushback against Sinclair's growing dominance is coming in all forms, shapes and sizes — even from its ideological allies. Last week, Sinclair stock slipped following reports that its biggest rival, 21st Century Fox, may pull Fox affiliate stations from the broadcasting behemoth. The Murdoch-controlled company, which also considered buying Tribune stations, is concerned that a post-merger Sinclair would have increased leverage in negotiations for carrying the programming.

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