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As expected, the Senate officially voted not to approve the Republican-backed continuing resolution (CR) appropriations bill that would defund the Federal Communications Commission's network neutrality rules and its chief diversity officer, as well as the Corporation for Public Broadcasting.
The House had approved the bill before the President's Day break last month, which would have funded the government through September but with 60 billion or so in Republican-backed budget cuts. When it was clear that was not going to get approved before the March 4 expiration of the last continuing resolution, a two-week stopgap CR was passed with a handful of cuts -- including to some broadband stimulus funding through the Department of Agriculture -- but none of the above cuts. Congress must still agree on a new CR, either short-term again of the longer-term version, by March 18, when the current CR runs out. Then, of course, it must eventually pass an appropriations bill, which it has been trying to do since last year.
Senate Rejects House CR with FCC, CPB Cuts
[Commentary] For media companies, when and how to tap into the new mobile and social platforms on the web is as much a question of timing and technological tactics as of business strategy. But make no mistake: as the platforms quickly evolve, most companies have little choice but to engage with them – and pay whatever toll is required. There have been two reminders in recent days of the growing power of these platforms, from Apple and Facebook.
Media will be forced to play by the Internet’s rules
The Obama administration may not be lending arms to dissidents in the Middle East, but it is offering aid in another critical way: helping them surf the Web anonymously as they seek to overthrow their governments.
Federal agencies - such as the State Department, the Defense Department and the Broadcasting Board of Governors - have been funding a handful of technology firms that allow people to get online without being tracked or to visit news or social media sites that governments have blocked. Many of these little-known organizations - such as the Tor Project and UltraReach- are unabashedly supportive of the activists in the Middle East. But the United States' backing of these firms has the potential to put the government in an awkward diplomatic position, not only with the countries where uprisings are active, but also with economic partners such as Saudi Arabia and China, which are known to block Web sites they deem dangerous. The technology comes with its own perils: Some of the tools may not always conceal the users' identities. Autocratic foreign governments are constantly updating their censorship and monitoring technology. And, of course, the software can be handy for terrorists seeking to communicate in clandestine ways.
US funding tech firms that help Mideast dissidents evade government censors
Instead of network neutrality regulations, Europe has opted for unregulated competition to guard against anti-competitive behavior on the Internet.
The European Union’s “competitive Internet offers” and ease of “switching” providers should not be underestimated for its role in supporting regulation-free net neutrality, Neelie Kroes, the European Commission’s vice president and the European digital agenda commissioner, said in a November speech. As proof of her confidence in the marketplace, Kroes later said that people cut off from Skype should vote with their feet and leave their mobile provider. “A healthy competitive environment allows tackling many potential problems at their root, avoiding the emergence of monopolistic gatekeepers, which could create serious dangers for net neutrality,” Kroes said. “This is why the debate is different here than in the United States.”
The way Europe's Net works
Three powerful billionaires, lambasting one another as "monopolists" and "duopolists," filed complaints against each other , ratcheting up a battle over Mexico's $35 billion telecommunication and broadcast markets.
First, a coalition of 25 cable, phone and broadcasting companies filed a complaint against Teléfonos de Mexico SAB, known as Telmex, and Telcel, Mexico's largest land-line and mobile-phone companies. Both companies are controlled by Carlos Slim, a telecommunications mogul and the world's richest man. The complaint, filed before Mexico's Federal Competition Commission, is an attempt to force Slim's companies to lower the rates charged to connect to their phone networks.
In turn, Slim cited the broadcasters for monopolistic practices, among other things. In play is the future of Mexico's $35 billion a year telecommunications and broadcasting market as companies strive to bundle TV, broadband Internet and phone services. While Mexican companies rarely intrude on each other's markets, the country's regulatory controls have failed to keep up with technological convergence, leading broadcasters and telcom companies to try to invade each other's turf. Televisa and TV Azteca worry that if Slim enters the TV market, he will have an unfair advantage because of Telmex's control of 80% of the country's land lines and Telcel's control of 70% of the mobile-phone market. Slim's competitors also say they have no chance of challenging him in the phone market because of the high rates his companies charge them to connect to his networks.
Mexican Phone, TV Firms Raise Ante
Teléfonos de México, the country’s dominant fixed-line phone carrier, plans to carve out its rural lines into a separate company, adding a new layer to a dispute between the company and its competitors. The new company, called Telmex Social, would serve 46 percent of the country where there is no competition, although it would account for only 12 percent of the parent company’s 15.5 million lines. Those lines operate with small profits or losses, the company said. Telmex, as the parent company is known, has long argued that it has carried out a social responsibility by serving Mexico’s poor and rural areas while its competitors have scooped up profitable business lines in big cities. But Telmex’s social commitment is not by choice. Under its concession, first as a monopoly and then as a dominant fixed-line company, Telmex has been required to provide service throughout Mexico. That condition was reflected in its sale price when it was privatized 20 years ago and in the fees it has charged competitors to complete calls on its network since then, analysts say.
Telmex to Put Rural Lines Into Separate Company
Omnicom, one of the world’s largest marketing services groups, has struck what it claims are industry-first partnerships with AOL, Yahoo and Microsoft, to gain direct access to the Internet companies’ consumer data.
The deals, which follow a similar agreement with Google last year, will give Omnicom’s agencies the ability to target advertising to particular locations, ages and demographics across the web’s biggest media networks. The partnerships are part of a wider strategy at Omnicom around the “art and science” of building greater expertise in digital advertising, as more clients increase their online advertising spending. Other elements of the partnerships involve technology companies providing “creative ambassadors” to work with Omnicom’s agencies. Omnicom believes its partnerships with the four largest online media owners will enable it to sidestep criticism around privacy, because it will not own the data, instead gaining constant access to the Internet companies’ own databases.
Omnicom in deals to target online ads
France’s top watchdog has called for a review next year of competition on new fiber optic telecoms networks being rolled out, and suggested that strong steps could be taken if there was not enough consumer choice.
The competition authority has asked the telecoms regulator, Arcep, to prepare the ground for a possible operational unbundling of France Telecom’s monopoly network business from the commercial operation – although such a move is not currently envisaged. This will enable the regulator to use the “new toolbox” of powers regulators will enjoy from May under European Union rules. The watchdog also recommended that in 18 months’ time Arcep evaluate the effectiveness of regulation in encouraging competition on the fibre optic network. People close to the subject said this was a clear warning to France’s incumbent operator that the development of competition would be closely monitored.
Watchdog warns on fiber optic competition
About seven bidders have made the shortlist to buy Polkomtel, Poland’s second-largest mobile operator, with local media billionaire Zygmunt Solorz-Zak seen as the frontrunner.
Although the company is not commenting on the process, Mr Solorz-Zak is thought to have placed a bid of more than 18bn zlotys ($6.3bn) for the company. The other bidders are thought to include private equity funds Apax, KKR, Providence and a joint offer by TPG and Blackstone. Two telecoms operators, TeliaSonera of Sweden and Norway’s Telenor, are also still in the running. Private equity firms are attracted by Polkomtel’s low debt and its high earnings – last year the operator had a net profit of 1.2bn zlotys on revenues of 7.7bn zlotys. Mr Solorz-Zak, with assets of 6.6bn zlotys according to an annual ranking of the wealthiest Poles compiled by Wprost magazine, controls Polsat, one of Poland’s main broadcasters, as well as Cyfrowy Polsat, the leading digital broadcaster.
Suitors line up for Polkomtel bid
House Republicans took the first step toward blocking the Federal Communications Commission's effort to assert authority over Internet lines, advancing one of several policy disputes GOP lawmakers have with the Obama Administration.
On a 15-8 partisan vote, the House Subcommittee on Communications and Technology approved a measure to toss out new FCC "net neutrality" rules which would prohibit Internet providers from deliberately blocking legal websites or Internet services. The agency approved the rules in December. It applied fewer rules on wireless broadband networks and required Internet providers to offer more information to subscribers about their service, such as actual download speeds. House Republicans have also proposed cutting FCC funding to prevent the agency from enforcing the rules in the continuing resolution budget proposal. The measure now awaits a full House Commerce Committee vote that has yet to be scheduled. It is unlikely that the Republican effort will succeed since it would require the approval of President Barack Obama, who has supported the FCC's new rules. But Republican lawmakers and conservative activists have targeted the FCC rules as part of a broader attack on the administration's approach to regulation.
House Republicans Win Early Battle Over Network Neutrality Rules No More Net Neutrality, House Subcommittee Says (National Journal) Key House subcommittee votes to undo net neutrality rules (ars technica) Net neutrality repeal clears House panel in 15-8 party line vote (The Hill) House Communications Subcommittee Votes 15 to 8 to Block FCC Net Rules (B&C) House Panel Votes To Nullify FCC's Neutrality Rules (Media Post) Public Knowledge Statement on House Subcommittee Vote To Nullify FCC Rules (Public Knowledge) Free Press Disappointed in House Vote on Resolution of Disapproval (Free Press) Vote Against FCC Net Neutrality Rules Is An Exercise in Futility (Media Access Project)