Hollywood studios are asking the FCC to make protecting creative content online a core principal of its national broadband plan. In a late Friday filing, the Motion Picture Association of America wrote that if the plan -- due to Congress in February -- is to serve as a roadmap for high-speed Internet service for all Americans, the government must recognize the role content plays in driving adoption of new technologies. The filing came on the heels a September FCC workshop that featured testimony from MPAA Chairman Dan Glickman and Paramount Pictures Chief Operating Officer Frederick Huntsberry.
"Compelling content is an essential ingredient in the consumer Internet experience and a key driver of broadband adoption. Inadequate respect for creative rights online will impede the rollout of creative new content offerings, undermining the Commission's, Congress' and the administration's goal of ubiquitous national broadband," the MPAA said in its filing. "The government cannot let the anonymity of the Internet become a cloak behind which people think that unlawful conduct can continue unabated."
Read the MPAA's full filing here.
A snippet from CongressDaily's TechCentral Issue Of The Week on Monday:
A broadening feud between video providers in key communities throughout the country is driving the adage home that all politics is local. Verizon Communications brought its battle over regional sports networks to Capitol Hill last week, urging lawmakers to close a 17-year-old "terrestrial loophole" through which cable operators with programming assets can avoid FCC program access requirements.
The exemption to the 1992 Cable Act rules, which apply to satellite-delivered content, has allowed cable companies to maintain exclusivity on certain content in certain cities, said Verizon Vice President Terrence Denson, whose company offers the fiber-optic FiOS video service. AT&T, which has a similar product, has joined with Verizon to wage war against Cablevision at the FCC, and the two have a case pending.
In New York City, Cablevision owns Madison Square Garden and offers coverage of professional sports teams, concerts and more. Verizon was denied standard definition format of MSG networks' sports programming until it filed its initial FCC complaint. It is currently unable to tap MSG's high-definition broadcasts, and Cablevision has asserted the HD feed is excused from program access rules.
Read the full story here (subscription required).
If the last week has taught us anything, it's that everyone -- and we do mean everyone -- seems to have an opinion on FCC Chairman Julius Genachowski's plan to enhance the Commission's so-called network neutrality rules. Here are links to a few recent CongressDaily stories on the subject (subscription required).
Divided FCC OKs Proposed Neutrality Rules (Oct. 22)
Genachowski Revises Proposed Rules In Nod To Critics (Oct. 22)
FCC Chairman Drafts Neutrality Rules Exempting Google (Oct. 21)
Group Targets Lawmakers On Net Neutrality (Oct. 21)
Executives, Trade Group Take Sides On Pending FCC Vote (Oct. 20)
Google and Verizon brought out the big guns in anticipation of Thursday's FCC meeting to begin discussing an expansion of the Commission's so-called network neutrality rules. Google CEO Eric Schmidt and Verizon Wireless CEO Lowell McAdam wrote a post on the companies' policy blogs detailing the Internet and innovation areas they agree upon. Some snippets from Wednesday's can't-we-all-just-get-along themed message:
"The Internet revolution has been people powered from the very beginning, and should remain so. The minute that anyone, whether from government or the private sector, starts to control how people use the Internet, it is the beginning of the end."
"Advanced and open networks are essential to the future development of the Web. Policies that continue to provide incentives for investment and innovation are a vital part of the debate we are now beginning."
"The FCC's existing wireline broadband principles make clear that users are in charge of all aspects of their Internet experience--from access to apps and content. So we think it makes sense for the Commission to establish that these existing principles are enforceable, and implement them on a case-by-case basis."
Read their full post on Google's blog here and Verizon's here.
Verizon CEO Ivan Seidenberg took issue Wednesday with proponents of FCC Chairman Julius Genachowski's so-called network neutrality plan who have suggested that network providers like Verizon and content providers like Google, Amazon and others occupy fundamentally different parts of the Internet ecosystem. The view that the Web is made up of "dumb pipes" on the one hand and "smart applications" on the other is a mistake, he told an industry conference in Chicago. "It fundamentally misreads how innovation happens in a dynamic and collaborative industry," he added.
"Our industry has shown that we can work with the government as well as our partners and competitors to achieve mutually desirable goals of more competition, consumer choice and broadband expansion. But we can't achieve these ends if we interrupt the flow of private capital and delay the cascading productivity impacts of a more networked world," Seidenberg said in a keynote at SUPERCOMM 2009 on the eve of a critical FCC meeting where commissioners will start crafting so-called network neutrality rules. He also warned against "pitting network providers and applications developers against each other in a zero-sum game."
Meanwhile, an open letter signed by 30 business investors in technology companies was sent today to FCC Chairman Julius Genachowski on Wednesday. Prominent venture capitalists --including five of the top ten ranked investors on the 2009 Forbes "Midas List" - support "the Commission's ongoing efforts to adopt rules to safeguard the open Internet." The proposal will drive "investment, job creation, and consumer welfare," they wrote.
Read more about Genachowski's game plan and Thursday's Commission meeting in CongressDaily AM Edition here (subscription required).
House Energy and Commerce Communications Subcommittee member Marsha Blackburn, R-Tenn., on Tuesday took a swipe at an ongoing push by the Obama administration and high-tech companies to beef up so-called network neutrality rules at the FCC, describing effort as "the fairness doctrine for the Internet." The Commission rescinded that doctrine, which required TV and radio broadcasters to air opposing political viewpoints, in 1987.
FCC Chairman Julius Genachowski said in September that he does not intend to revive the fairness doctrine amid concerns raised by Republicans and conservative talk radio hosts. He is, however, championing a controversial plan to consider new rules aimed at preserving and promoting consumers' unfettered access to Web content. The FCC will begin its work on that topic Thursday.
More than 20 CEOs and founders of major Internet and technology companies wrote to FCC Chairman Julius Genachowski on Monday in support of his controversial plan to begin considering new rules aimed at preserving and promoting consumers' unfettered access to Web content. The letter from executives for Google, Facebook, Sony, Amazon, eBay, Twitter and other tech titans comes as the FCC prepares to vote Thursday on a proposal to expand and fortify its so-called neutrality regulations.
"An open Internet fuels a competitive and efficient marketplace, where consumers make the ultimate choices about which products succeed and which fail. This allows businesses of all sizes, from the smallest startup to larger corporations, to compete, yielding maximum economic growth and opportunity," they wrote. Lobbying on the topic reached a fevered pitch last week with Senate Commerce ranking member Kay Bailey Hutchison signaling she might pursue legislation to block new rules if Genachowski doesn't modify his proposal to reflect her concerns.
Also last week, 18 GOP senators -- including John McCain of Arizona, a former chairman of the Commerce Committee -- insisted in a separate document that the FCC's proposed revisions "will be counterproductive and risk harming the great advancements in broadband speed and deployment that we have witnessed." Yet another letter from 70 House Democrats urged Genachowski to "carefully consider the full range of potential consequences that government action may have on network investment."
A prominent open government group on Wednesday unveiled its vision for a revamped FCC Web site after weeks of online public discussion and input from Commission officials and key stakeholders. What made the FCC redesign different from the Sunlight Foundation's previous efforts to show how federal sites can be easier to access was the dense content. "Most visitors find it difficult to understand the vast majority of the content for good reason: it can be highly-technical and the FCC's operations are foreign to most people," the group said in a blog post. Click here to read a detailed summary of the changes Sunlight proposes, plus screenshots of its FCC mock up.
The FCC on Friday launched a formal inquiry into Google's Internet-based telephony service on the heels of reports that the company blocked calls to rural areas and as a result is reducing its access expenses. A letter from FCC Wireline Competition Bureau Chief Sharon Gillett to Google Washington Telecom and Media Counsel Richard Whitt requests answers to a number of questions about Google Voice by Oct. 28. The Commission wants an explanation of how Google Voice calls are routed and whether calls to particular numbers are restricted and the technological means by which those restrictions are implemented.
Other questions concern how Google informs its customers of restrictions in the numbers to which calls can be placed; the extent to which Google Voice functionalities are offered for free; and details about pay services. The FCC also asked for an explanation of the "invitation-only" manner in which users subscribe to the service and how Google believes the application fits within the law and FCC regulatory classifications. Twenty members of the House who represent rural communities urged the FCC earlier this week to open the investigation. Google has argued that in order to offer free or low-cost access, it restricts certain outbound calls from its Web platform to high-priced destinations.
Whitt responded to the FCC inquiry, which he said was spurred by an AT&T complaint, on the Google policy blog. "Google Voice is a free Web application, one intended to supplement and enhance existing phone lines, not replace them," he wrote. Whitt also said AT&T's approach "is what a former FCC chairman has called 'regulatory capitalism,' the practice of using regulation to block or slow down innovation."
Twenty members of the House who represent rural communities have requested the FCC open a formal investigation into the nature and function of Google's Internet telephony service known as Google Voice. In a Wednesday letter to FCC Chairman Julius Genachowski, the lawmakers said they are concerned with Google's assertion that it is not offering a "traditional" telephone service -- despite its use of 10-digit numbers and its ability to connect calls over a local exchange carrier -- and therefore should not be treated as a common carrier service like AT&T and Verizon.
Google "should not be able to evade compliance with important principles of access and competition set forth by the FCC by simply self-declaring it is not subject to them," they wrote. "If Google is allowed to operate its telephone service outside the rules by which all other common carriers operate, we worry that the market and support for universal service will be undermined." Rural consumers, whose calls would only be selectively connected, would be most harmed, they argued. The letter was signed by Reps. Steve Buyer, R-Ind.; Charlie Melancon, D-La.; John Shimkus, R-Ill.; John Barrow, D-Ga., and others.
AT&T last month asked the FCC to force Google to play by the same rules as its competitors on the heels of reports that the Internet giant blocked calls to rural areas for users of its Google Voice service and, as a result, is reducing its access expenses. Google defended itself on its blog saying that the company's goal is to provide consumers with free or low-cost access to as many advanced communications features as possible. To do that, Google Voice restricts certain outbound calls from its Web platform to high-priced destinations.
In a big win for companies like Skype, AT&T announced Tuesday that it has taken the steps necessary so that Apple can enable voice over Internet protocol (VoIP) applications on iPhone to run on AT&T's wireless network. Previously, VoIP applications on iPhone were enabled only for Wi-Fi connectivity but AT&T has offered a variety of other devices that allow VoIP applications on 3G, 2G and Wi-Fi networks. AT&T Mobility & Consumer Markets President Ralph de la Vega said the decision was made after evaluating customers' expectations and use of the iPhone compared to dozens of other products offered to subscribers.
Telecom analysts Rebecca Arbogast and David Kaut said the announcement was not only good for Skype but also for AT&T's "political and rhetorical position as the FCC attempts to write network neutrality rules, including for wireless broadband providers." The AT&T move is noteworthy, but not a surprise, in light of the AT&T August response to FCC questions about Apple's decision not to allow Google Voice to be carried on the iPhone through the App Store, the wrote. The announcement does not change Apple's position on Google Voice -- a situation the company said it was still "pondering."
FCC Chairman Julius Genachowski issued a statement late in the day commending AT&T for its action. "Opening wireless services to greater consumer choice will drive investment and innovation in the mobile marketplace," he said.
President Obama is facing pressure from House Minority Leader John Boehner and Minority Whip Eric Cantor over FCC Chairman Julius Genachowski's plan to prevent telecommunications and cable broadband providers from blocking or degrading competing content and services on the Internet. In a Friday letter, the pair wrote that the Commission should direct its energy on developing the national broadband plan, which is due to Congress in February.
"We believe that network neutrality regulations would actually thwart further broadband investment and availability, and that a well-reasoned broadband plan would confirm our view," Boehner and Cantor wrote. "To hastily begin the process of adopting network neutrality rules months before issuing such a plan implies that politics are driving the FCC's decision-making process." The FCC is slated to vote on the proposed net neutrality rules at its Oct. 22 meeting.
Gigi Sohn, president of Public Knowledge and a proponent of Genachowski's effort, called it "truly unfortunate" that the House Republican leadership has tried to slow what she called "the greatest economic engine for job creativity and innovation ever created." The FCC's aim is to establish a set of principles to preserve an open Internet for all Americans, she said. "Net neutrality is simply a guarantee of fairness, a prohibition on discrimination," Sohn added.
Kevin Martin, former Federal Communications Commission chairman, has joined Patton Boggs where he will work at the law and lobbying firm's telecommunications and technology practice. Martin starts at the firm early next month and will oversee the practice with Jennifer Richter. Richter is also slated to become co-chair Patton Boggs' public policy practice.
Martin was named to the FCC as a commissioner in 2001 and was elevated to chairman in 2005 to replace Michael Powell. He resigned from the agency in January of this year and joined the non-profit Aspen Institute. Prior to the FCC, Martin was special assistant to former President George W. Bush for economic policy and served on the White House's National Economic Council.
[Updated 5:05 p.m.] AT&T asked the FCC on Friday to force Google to play by the same rules as its competitors on the heels of reports that the Internet giant blocked calls to rural areas for users of its Google Voice service and, as a result, is reducing its access expenses. The letter from AT&T Senior Vice President Robert Quinn points out that a June 2007 FCC decision prohibits other providers, including those with which Google Voice competes, from taking such action. Google has argued Google Voice isn't a traditional phone service and shouldn't be regulated like other common carriers.
Quinn issued a statement saying that Google is "openly flaunting the call blocking prohibition that applies to its competitors" and is acting in a manner inconsistent with the spirit, if not the letter, of the FCC's fourth principle of its Internet policy statement. That principle calls for fair competition among providers of networks, applications, services and content. He added that it is ironic that Google is "flouting the so-called 'fifth principle of non-discrimination' for which Google has so fervently advocated."
FCC Chairman Julius Genachowski appeared at the Brookings Institution on Monday to outline a multipronged strategy for expanding the agency's "network neutrality" guidelines and strengthening their enforcement. "While Google argues for others to be bound by net neutrality rules, it argues against itself being bound by common carriage," Quinn said. Google officials had not had a chance to review the AT&T letter and could not comment. Google posted a reply to AT&T's letter on its blog saying that the telecom company "is trying to make this about Google's support for an open Internet, but the comparison just doesn't fly."
House Energy and Commerce Communications Subcommittee member Doris Matsui, D-Calif., has introduced a bill that would expand the Universal Service Fund's lifeline assistance program for broadband adoption. The bill directs the FCC to establish a broadband program that provides low-income Americans living in rural and urban areas with assistance in subscribing to affordable broadband internet service. Matsui said her measure would help "fully close the digital divide."
In California, an estimated 96 percent of residences have access to broadband but just over half have signed up for a high-speed connection at home. In most cases, adoption rates are associated with income as seen in recent data from the Public Policy Institute of California, which show that only 58 percent of the state's residents earning under $40,000 a year subscribed to dial-up or broadband at home, according to Matsui's release. In contrast, 97 percent of those earning $80,000 or more subscribed to one of the services.
"It is clear that millions of Americans cannot afford broadband services," Matsui said in a press release, pointing out that in the current economic climate, many cannot afford to pay up to $60 a month for broadband. The legislation models the assistance provided for basic telephone service under the FCC's current lifeline assistance program, which is designed to ensure that quality telecommunications services are available to low-income customers at reasonable rates.
Warning that a free and open Internet "faces emerging and substantial challenges," FCC Chairman Julius Genachowski on Monday outlined ambitious plans for rules designed to prevent telecommunications and cable broadband providers from blocking or degrading competing content and services. "I believe the FCC must be a smart cop on the beat preserving a free and open Internet," he told a packed audience at the Brookings Institution.
Such rules could potentially insulate the FCC from a lawsuit challenging its authority to enforce its network neutrality principles, which were introduced as voluntary. But the announcement could trigger a reaction from Republicans on Capitol Hill and at the agency, as well as major communications companies, which have argued that heavy-handed government intervention could stifle broadband investment. Industry players generally coupled their criticism with praise for areas where they have common ground, though privately, they are said to be nervous.
"I think they're reluctant to get in his face this early in his tenure," an industry source said, adding it appears that major carriers -- recognizing Genachowski has the votes to move forward -- will seek to shape regulations they can live with. The FCC will vote on the proposed changes at its October meeting, but the new rules are not expected to be in place until the spring, well after it issues a national broadband plan to Congress in February.
Read David Hatch's CongressDaily PM Edition story here and a follow-up piece in Tuesday's AM Edition here (subscription required).
The FCC on Thursday posted Chairman Julius Genachowski's first video blog (see above) and teased additional tech-savvy announcements he would make during an afternoon speech at the Gov 2.0 summit taking place in Washington this week. The four-minute video follows the launch of an FCC blog and Twitter feed last month. "The FCC must be a 21st century agency for the information age," Genachowski said. "New media technologies can help achieve that important goal. Using innovative online tools will enable the Commission to perform more efficiently and communicate more effectively."
The National Association of Broadcasters on Tuesday filed comments with the FCC dismissing a complaint filed by music industry stakeholders as nothing more than a "carefully crafted public relations document" that runs counter to the First Amendment, the Communications Act, and precedent set by both the Supreme Court and the FCC. As such, the MusicFirst Coalition's argument that AM and FM stations are threatening and intimidating artists while rejecting the group's ad dollars, should be rejected, NAB said.
Music groups have backed legislation that would require over-the-air stations to pay a fee to performers when their songs are aired. They argue the bill would bring AM and FM stations in line with Internet, cable and satellite radio services, which all provide such compensation. NAB has deemed the effort a ploy by the Recording Industry Association of America to levy a "tax" on local radio. Read a detailed description of the NAB's FCC filing here and MusicFirst's initial complaint here.
Meanwhile, reports that Apple will include an FM tuner in the new iPod Nano highlight the important role music will play in radio's future success, MusicFirst Executive Director Jennifer Bendall said Wednesday. She called the iPod murmur "great news for music and great news for radio." "Radio needs music more than ever before. It must fairly support the artists and musicians who bring music to life and listeners' ears to the radio dial."
The Music Managers Forum, a member of a coalition backed by the Recording Industry Association of America, royalty collector SoundExchange and other music interests, filed comments with the FCC on Tuesday in support of a petition urging the agency to probe radio stations' refusal to air advertisements backing legislation that would require AM and FM stations to pay fees to performers. National Association of Broadcasters officials have repeatedly noted their members are under no obligation to accept any and all advertising, including spots from the MusicFirst Coalition.
The MMF filing contains a copy of a strongly worded e-mail from college radio station WICB in Ithaca, N.Y., to musician Aimee Mann, which MusicFirst argues illustrates their claim that stations are threatening artists who support the legislation. In the e-mail posted on Mann's online message board, WICB General Manager Chris Wheatley states: "Since you support MusicFirst, WICB hereby drops Aimee Mann... from our playlist like a bad habit." "The very medium that made you a 'star' should now pay for the privilege of promoting your product? MusicFirst is out to kill radio. For you, no airplay = no sales, and no concert tix," the e-mail reads.
Wheatley added that he would encourage other college broadcasters to follow WICB's lead "and the few commercial stations that play your music will be happy to join our cause." WICB is an affiliate of both ABC Radio and the Associated Press. Under provisions of the Performance Rights Act, as passed by the House Judiciary Committee earlier this year, college and other non-commercial radio stations would pay $500 or $1,000 a year, according to MusicFirst, which has documented other instances of performers' tracks being shunned after they spoke in support of the legislation.
The FTC urged the FCC on Friday to take into consideration the consumer protection agency's primary missions of promoting competition and safeguarding consumers in the marketplace as the FCC develops its national broadband plan. "The FCC deserves tremendous credit for its leadership in creating a national broadband policy that will help bring high-speed Internet access and services to Americans across the nation," FTC Chairman Jon Leibowitz said in a press release. "As the agency that shares jurisdiction over broadband and the Internet, we look forward to working with the FCC in fulfilling this historic mission."
The FTC's response to an FCC notice of inquiry points out that competition and consumer protection work together to benefit individuals. Competition pressures producers and service providers to offer customers the most attractive array of choices with respect to price, quality, and other options, the agency said. At the same time, consumer protection policy promotes informed decision-making by customers and requires sellers to provide meaningful, timely information. The FTC's comments also question whether there is significant broadband competition and recommends using analytical tools embraced by the FTC and Justice Department in antitrust cases.
Consumer protections also are essential to help foster greater adoption of broadband, the FTC said. Those include meaningful and timely disclosures of service terms by broadband providers and strong data security policies that will safeguard consumer information and ease potential consumer concerns about online privacy. Privacy protections are particularly important, given new technologies that allow broadband providers to track consumers' online activities, to identify the source and content of much of the data they handle, and to manage that data in increasingly sophisticated ways, such as delivering targeted advertising online, officials said.
Steve Largent, president of wireless association CTIA, told reporters Thursday that his trade group will use the FCC's recently announced notices of inquiry on innovation and competition in the mobile marketplace to share his industry's success story. Having a fact-based examination, which FCC Chairman Julius Genachowski requested at last week's Commission meeting, will "be a good thing for our industry," Largent said. Genachowski has faced pressure from Congress and smaller telecom firms to investigate whether firms like AT&T, Verizon and Sprint Nextel are unfairly dominating the space.
Largent insisted, as telecom companies' executives have, that there is vigorous competition in the wireless industry. Prices continue to fall; 95 percent of U.S. consumers have a choice of three or more carriers; consumer satisfaction is up and complaints are down, he said. Largent also acknowledged that the mobile industry has been impacted by the economic slump. "We have not seen the numbers grow the way they have the last three years but nonetheless we're still growing," he said.
CTIA is also lobbying hard for regulators to make available more spectrum. The FCC has held two auctions in recent years, which resulted in the freeing of valuable spectrum, but Largent said more is needed. He said the last auction took about a decade to come to fruition and companies and customers "cannot afford to wait" years for the next auction. Additionally, his group is pressing Congress to change tax laws -- namely placing a five year moratorium on increases to wireless taxes. Consumers pay an average of 15.3 percent taxes on their wireless bill and "that's unacceptable," Largent said.
The Motion Picture Association of America has asked the FCC for the authority to selectively control output streams to the television entertainment systems of consumers. A Monday letter to the Commission from the trade group's lawyers at Skadden Arps states that such a waiver would "for the first time enable millions of Americans to obtain access in their homes to high-value content" that major movie studios distribute. Consumer watchdog group Public Knowledge has claimed that the request would leave over 11 million individuals who only have analog outputs without any viewing ability.
In meetings with FCC staff and in correspondence, the MPAA has insisted the change would benefit consumers. "Even as innovative technologies bring consumers new and better opportunities to enjoy media content, there is always a lag between when early adopters take advantage of these opportunities and when they become ubiquitous," the letter said, pointing to the fact that as DVD players were introduced for home use, many households still used VCRs. "That some consumers may wait longer to purchase new devices or take advantage of innovative technologies, however, is no reason to deny all consumers the potential benefits of new offerings," the letter said.
The Consumer Electronics Association has opposed the idea. In a November 2008 letter to the Commission, the high-tech trade group said the MPAA has promised vaguely to distribute "some unspecified type and amount of programming" somewhat earlier than they are able to do now. "This promise hardly amounts to an important public purpose," CEA said. The studios' claim that the threat of piracy arising from high-definition TV necessitates the provision of "unfettered control over all inputs on lawfully-purchased HD TV sets," the group said. New FCC Chairman Julius Genachowski has not weighed in on whether he thinks granting the MPAA's request is a good idea or bad idea.
(Hat tip, Ars Technica)
The National Association of Broadcasters has nabbed the FCC's two newest commissioners -- Republican Meredith Baker and Democrat Mignon Clyburn -- to speak at the trade group's upcoming radio conference held Sept. 23-25 in Philadelphia. Commissioners Baker and Clyburn, who attended their first FCC meeting last week, are expected to discuss regulatory issues impacting the radio business and their priorities as new members of the agency. Baker most served as acting administrator of the National Telecommunications and Information Administration in the Bush administration and Clyburn joined the FCC from the Public Service Commission of South Carolina.
Other notables speaking at NAB's Radio Show include Scott Goodstein, who most recently served as external online director for President Obama's presidential campaign, as well as a number of broadcasting executives from Clear Channel Communications, Radio One, Emmis Communications, Saga Communications, Spanish Broadcasting System, Regent Communications, ICBC Broadcast Holdings and others. R&B artist Brian McKnight, who hosts his own show on Citadel Media Networks, will also perform during the NAB Marconi Radio Awards Dinner on Thursday, Sept. 24. For more on the conference click here.
Senate Commerce Chairman John (Jay) Rockefeller said Monday's release of an FCC report on existing technologies that block television content deemed inappropriate for children was a welcome step but more must be done by the agency and Congress. Government and the private sector must go beyond simply offering information, he said in a statement. They must provide "simple ways for families to control and monitor their children's screen time [and] must offer the tools and policies that make it easy for people to be good parents and oversee the viewing that goes on in their homes."
Rockefeller said he looked forward to the FCC's next action in this area, noting that his interest in the topic has long been high as are his expectations. He vowed to "continue fighting for these important protections" and said he looked forward to working with Consumer Protection Subcommittee Chairman Mark Pryor, D-Ark., and other Commerce Committee colleagues on the issue. The FCC report was required under the 2007 Child Safe Viewing Act and over the past six months, the agency has compiled a record on parental control technologies in use as well as those still in development.
FCC Chairman Julius Genachowski said the report "contains some important information for parents [but] also raises important questions and exposes the need for further study of this essential issue." The Commission will soon unveil a notice of inquiry seeking more information on the topic as well as others related to children and media in the digital age. "We recognize that technology has created profound new challenges for parents by vastly expanding the scope and quantity of media available to our children. But technology also can -- and must -- be part of the solution," Genachowski said in a statement.
The FCC's staff workshops on the national broadband plan continue this week with a Tuesday afternoon discussion about state and local government issues; benchmarks for evaluating dimensions of broadband across geographic areas and across time on Wednesday; and a Thursday focus on "big ideas" that have the potential to change the Internet, according to a notice released Monday. The Commission is holding a series of sessions throughout August and September to promote an open dialogue between the FCC and its constituents. The agency has a Feb. 17, 2010 deadline to submit its broadband plan to Congress.
Here's the speaker line up for this week:
State & Local Government
- Oregon Public Utilities Commissioner Ray Baum
- Colorado Deputy Chief Information Officer John Conley
- Florida Division of Telecommunications Director Charles Ghini
- Virginia Deputy Secretary of Technology Karen Jackson
- Mississippi Information Technology Director Craig Orgeron
- Jane Patterson, Executive Director, e-NC Authority, State of North Carolina
- Chicago Chief Information Officer Hardik Bhatt
- New York City IT Commissioner Paul Cosgrave
- Lafayette, La. City-Parish President Joey Durel
- El Paso, Texas Chief Information Officer Gary Gordier
- Howard County, Md., Cable Administrator Lori Sherwood
- San Francisco Chief Information Officer Chris Vein
The U.S. Court of Appeals for the District of Columbia Circuit on Friday sided with Comcast Corp., in the cable television giant's appeal of the FCC's 30 percent horizontal ownership cap for cable operators. According to the court, the FCC failed to fully weigh competition from satellite TV providers such as Dish Network and DirecTV. The court called the FCC's action "arbitrary and capricious" and vacated the rule. "This important decision affirms that rules must reflect the changing realities of the dynamic video marketplace where today consumers have more choice in video providers and channels than ever before," Comcast spokeswoman Sena Fitzmaurice said.
Randolph May, a former FCC associate general counsel and head of the Free State Foundation, said the ruling was not unexpected. "There are commissioners who have persisted in wanting to take an overly constrained view of competition in the communications marketplace," he said, noting this is the second time in recent months the court has reversed an FCC policy. Progress and Freedom Foundation President Ken Ferree said he was glad the D.C. Circuit is there to serve "as a backstop of rationality when the administrative agencies run amok."
Media Access Project President Andrew Jay Schwartzman said he was disappointed but surprised with the ruling. "Although Congress directed the FCC to establish limits on cable ownership in 1992, the D.C. Circuit Court of Appeals has been disinclined to approve such regulations. It is hard to imagine that any rule the FCC could devise would ever withstand review under the standards established in today's decision," he said.
Continue reading Court Rejects FCC's Cable Market Share Cap.
Senate Judiciary Antitrust Subcommittee Chairman Herb Kohl, D-Wis., on Thursday welcomed the announcement by the FCC that it will open an investigation into the wireless industry. The five-member Commission unanimously approved a sweeping examination into the sector intended to better understand factors that encourage innovation and investment and identify concrete steps it should take. The FCC also wants to gauge the adequacy of consumer protection policies through "truth in billing" rules for communications services. See CongressDaily's coverage here (subscription required).
In June, Kohl's subcommittee held a hearing to examine competition in the wireless space and the senator subsequently contacted the FCC Chairman Julius Genachowski and the Justice Department's Assistant Attorney General for Antitrust Christine Varney, urging the agencies to take action to ensure that the cell phone industry is fully open to competition and that barriers to entry and expansion by new competitors be removed. "Strong competition in this market is the only way to ensure that consumers in all parts of the country have access to innovative produces and services at fair prices," Kohl said.
The FCC is taking major strides to keep pace with the popularity of social networking Web sites like MySpace and Facebook by offering its employees an internal electronic forum for communicating about the Commission's priorities and activities. FCC Managing Director Steven VanRoekel, an ex-Microsoft executive, told commissioners at a Thursday meeting that a site -- reboot.fcc.gov -- is allowing hundreds of staffers engage in discussions about how to improve the agency and connect in "an organic way." The announcement came on the heels of the FCC's launch of a broadband blog and feed on the micro-blogging platform Twitter last week.
Working groups and task forces have been formed through the closed site to help find solutions to a range of challenges faced by the FCC without instructions or a directive from their superiors, he said. For example, employees last week formed an online committee to help the Commission become more eco-friendly. VanRoekel said the Web site will be opened up so external stakeholders can join in the conversations "in the very near future." "We want to ensure the experience the public has with the agency is consistent, innovative and evokes trust," he said.
For more news from the FCC's August meeting, read CongressDaily's article: "FCC Opens Investigation Into Wireless Issues" here (subscription required).
The FCC held its first meeting as a full five-member commission under Chairman Julius Genachowski on Thursday. Democratic Commissioner Mignon Clyburn and Republican Meredith Baker joined colleagues Michael Copps, a Democrat, and Robert McDowell, a Republican, on the dais. Before digging into the meat of the meeting, members began with some humorous remarks. Some highlights:
• Genachowski, who chaired his first meeting (with only Copps and McDowell) last month, banged the gavel and said it "wasn't as exciting as last time." He added that now that the FCC has five commissioners his statements will be 40 percent shorter.
• McDowell noted that Clyburn, a former South Carolina Public Service Commissioner "doesn't even have to change the title on her business card." He joked that the FCC could save money by simply scratching out the old address.
• McDowell also said that Baker, who sits at the end of the dais, will routinely speak last. That means she'll be editing her remarks on the fly because the other commissioners will steal all of her talking points. The push to improvise will "drive all your legal advisers crazy," he said.
• Clyburn said she was impressed with the FCC's "first class southern hospitality" since she came on board -- from the lobby welcome banner and prompt thermostat adjustments to the security guard who waved her into the right garage during her first week.
• On a final note, Genachowski's spokeswoman Jen Howard baked the press corps chocolate chip and peanut butter cookies -- a delicious bribe.
The FCC has granted a new round of set-top box waivers, which backers of the plan say would make it far less expensive for customers of small cable operators to watch digital television and more cost-effective for cable providers to reclaim analog bandwidth and become all-digital platforms. Motorola, Cisco, Pace and Thomson were the recipients of three-year waivers for "low-cost, limited capacity" boxes, according to an order from the FCC Media Bureau. The boxes covered by the waivers allow consumers to watch digital programming on analog receivers but do not support HD programming, DVR functionality or broadband access.
The American Cable Association, which represents small cable companies, urged the Commission to go a step further by granting waivers for low-cost digital set-tops that can process HD programming. The approved boxes also would not include CableCards, which perform signal security operations on set-tops supplied both by cable operators and third-party vendors. Prior to its new waiver policy, the FCC required cable operators to rely on set-top boxes with the separate security CableCard.
Public Knowledge President Gigi Sohn issued a statement saying she was disappointed with the FCC action. The waivers "lock in advantages the cable companies already have while offering consumers set-top boxes with fewer features than they might otherwise get in an open market," she said. The larger issue, according to Sohn, is whether the Commission is doing what Congress required in 1996 when the Telecom Act promised an open, competitive market for full-featured set-top boxes.
FCC Chairman Julius Genachowski on Monday expressed concerns about Americans' access to new wireless offerings ahead of a Thursday commission meeting that some believe will put telecommunications giants like AT&T and Verizon in the hot seat for engaging in business practices that could be viewed as harmful to competition and consumer choice. "I am awed by the innovation we've seen," he said in an interview with CongressDaily. "[But] if you live in some parts of the country where you don't have access to a company that has an exclusive relationship with a smart-phone provider, you just can't get one."
Genachowski said the "complete lack of access" is a critical issue for the FCC to explore. At Thursday's meeting, the five-member panel is expected to vote on whether to launch an expansive inquiry into the wireless industry, which he said stems from the need to "make sure we have a set of policies in place that create the greatest possible climate for investment and that protect and empower consumers. It's essential that we have vibrant competition that produces services, fair prices and clear information for consumers." Read the full story on CongressDaily's Web site here (subscription required).
FCC Chairman Julius Genachowski sat down with CongressDaily and National Journal magazine on Monday for a wide-ranging interview on his agency's broadband deployment plan, the importance of competition in the mobile marketplace and a host of other issues. Afterward, he agreed to answer some lighter, rapid-fire questions about his relationship with technology. For more, read CongressDaily's story "Genachowski Concerned By Wireless Access" here (subscription required).
The FTC and Justice Department have given their blessings for Sprint-Nextel's planned $483 million merger with Virgin Mobile USA, officials confirmed Monday. Because Virgin, and its recent acquisition Helio are both MVNOs (mobile virtual network operators), analysts did not expect the deal to raise serious antitrust issues and thus believed regulators would approve the pairing. The deal could still be subject to review by the FCC, which has yet to issue a public notice on the matter. Virgin Mobile holds a small number of international licenses, which need to be transferred and require approval by the FCC, analysts at Stifel Nicolaus said in an e-mail. In its orders approving Verizon's combination with Alltel and Sprint's purchase of Clearwire last November, the FCC reaffirmed its view that MVNOs and resellers should be excluded from its analysis of the competitive impact of a wireless merger, they wrote.
Contrary to published reports, Apple has not rejected the Google Voice application for inclusion in its App Store and continues to study it, the computer and software company told the FCC in a Friday filing (see earlier Tech Daily Dose post). "The application has not been approved because, as submitted for review, it appears to alter the iPhone's distinctive user experience by replacing the iPhone's core mobile telephone functionality and Apple user interface with its own user interface for telephone calls, text messaging and voicemail," Apple wrote to FCC Wireless Bureau Acting Chief James Schlichting. "Apple spent a lot of time and effort developing this distinct and innovative way to seamlessly deliver core functionality of the iPhone."
The company further noted that Apple has acted alone and has not consulted with AT&T, its exclusive wireless carrier for iPhone, about whether or not to approve the Google Voice application. "Apple alone makes the final decisions to approve or not approve iPhone applications. There is a provision in Apple's agreement with AT&T that obligates Apple not to include functionality in any Apple phone that enables a customer to use AT&T's cellular network service to originate or terminate a VoIP session without obtaining AT&T's permission," the firm told Schlichting. From time to time, AT&T has expressed concerns regarding network efficiency and potential congestion associated with certain app and such concerns are taken into consideration, Apple said.
Apple also provided the FCC with a list of apps that have been rejected as originally submitted and their current status. The company said more than 40 full-time trained reviewers examine would-be iPhone applications and an executive review board determines procedures and sets policy for the review process. In little more than a year, Apple have reviewed more than 200,000 apps and updates. Apple said 95 percent of apps are approved within 14 days of being submitted. About 8,500 new applications and updates are filed weekly and roughly 20 percent are not approved as originally submitted. Read the Apple's full response here.
AT&T on Friday insisted that it had no role in any decision by Apple to not accept the Google Voice application for inclusion in company's iPhone App Store. The wireless company, which is the exclusive iPhone service provider, was not asked about the matter by Apple nor did AT&T offer any view one way or the other, AT&T Senior Executive Vice President Jim Cicconi said. His statement came as the telecom giant -- along with Apple and Google -- were set to respond to a July request for information by FCC Wireless Bureau Acting Chief James Schlichting.
Schlichting wanted details about reports that the Google Voice app had been blocked and previously approved third-party applications were removed from the iPhone App Store. In light of pending FCC proceedings regarding wireless open access and handset exclusivity, the Commission wanted a more complete understanding of this situation, he wrote, setting an Aug. 21 deadline for responses. Cicconi added that any AT&T customer could access Google Voice on any Web-enabled device operating on AT&T's network, including the iPhone, by launching the app through a Web browser without the need to use the App Store.
Google provided a redacted version of its letter to Schlichting, which leaves unanswered the question of what explanation (if any) was given for Apple's rejection of the Google Voice application. Google Telecom and Media Counsel Richard Whitt wrote that Apple has approved Google Earth and Google Mobile apps for iPhone and that Google does not have any other proposed applications pending with Apple. Apple's letter to the FCC was not immediately available and multiple e-mails to Apple officials were not returned. Tech Daily Dose will update this post as more details emerge.
The FCC will hold its first meeting next Thursday since July's Senate confirmation of Commissioners Mignon Clyburn and Meredith Baker.
Agenda items include:
• Consideration of a notice of inquiry to seek to understand better the factors that encourage innovation and investment in wireless and to identify concrete steps the FCC can take to support and encourage further innovation and investment in this area.
• Consider a notice of inquiry soliciting information for the next annual report to Congress on the status of competition in the mobile wireless market, including commercial mobile services.
• Consideration of a notice of inquiry that seeks comment on whether there are opportunities to protect and empower American consumers by ensuring sufficient access to relevant information about communications services.
The FCC ventured into new tech territory on Tuesday by launching a blog called "Blogband" that is intended to stimulate public dialogue over the development of a national broadband plan. "Blogband will keep people up-to-date about the work the FCC is doing and the progress we're making. But we want it to be a two-way conversation. The feedback, ideas, and discussions generated on this blog will be critical in developing the best possible national broadband plan," FCC Chairman Julius Genachowski wrote in his first post. The Commission also started a Twitter feed for agency news and updates on the broadband plan.
Blair Levin, who is coordinating the plan for the agency, posted his own item on the blog explaining the challenges he confronts as his the Commission works to meet Congress's Feb. 17, 2010 deadline "to reboot broadband deployment and usage in the U.S." "Our broadband team is leading an assault of sustained thinking by the entire FCC on the stubborn problem of bringing broadband to unserved and underserved areas, increasing the number of Americans using broadband, and maximizing how broadband can be used to help address significant national issues," he wrote. "Expect the unexpected."
Read related coverage about the FCC's broadband plan in CongressDaily's PM Edition on Tuesday here (subscription required).
The FCC is seeking comments on a petition filed by the Music First Coalition that claims radio stations across the country have refused to air their advertisements in support of legislation that would overturn a decades-long royalty exemption afforded to AM and FM stations. The music group also argues that the stations are running misleading ads produced by the National Association of Broadcasters. The Commission wants comments on the actions and, according to the FCC notice, "whether and to what extent broadcasters are engaging in a media campaign [coordinated by NAB] which disseminates falsities" about the Performance Rights Act.
"Corporate radio's spokespersons have not only confirmed the charges made in the petition, but boasted that they will continue to use the public airwaves to misinform policy makers and the public and punish artists and musicians for speaking out in support of a fair performance right," Music First Executive Director Jennifer Bendall said. "NAB will be commenting on the distortions raised in the Music First petition at the appropriate time," NAB Executive Vice President Dennis Wharton said in a statement. "Contrary to suggestions in the petition, broadcasters are under no obligation to carry everything that is offered or suggested to them."
The first FCC staff workshop for the development of a national broadband plan takes place Thursday and will focus on civic engagement and e-government. The workshop will conclude with an open mike session providing an opportunity for public participation, the Commission said Monday. The FCC's aim is to deliver its broadband plan to Congress in February with workshops being held in August and September.
Panel 1: A View from Government
• White House Chief Information Officer Vivek Kundra will discuss the how his IT dashboard and Apps for Democracy projects increased civic participation and increased government efficiency.
• Graham Richard, former Mayor of Ft. Wayne, Ind., will discuss how his city used broadband to improve performance.
• Beth Noveck, President Obama's deputy chief technology officer for open government, will discuss new opportunities for governments to engage citizens.
Panel 2: A View from the Non-Profit Sector
• The Chicago Committee for the 2016 Olympic Games will provide a view of how that organization is using a broadband platform to rally support.
• The Sunlight Foundation will discuss best practices for government engaging citizens.
• Norm Ornstein of the American Enterprise Institute will discuss how broadband can affect campaigns and elections.
• Andrew Reseij of the Personal Democracy Forum will discuss innovative uses of broadband that enhance democracy.
• Ellen Goodman of Rutgers School of Law, will discuss how broadband could create new opportunities for civic engagement through public media.
Government transparency gurus at the Sunlight Foundation have embarked on a project to show what the FCC's Internet presence should look like in the Web 2.0 world. According to Archive.org, the FCC site last received a facelift in fall 2001. The watchdog will release a mock up of a re-imagined FCC.gov but unlike its previous redesign projects -- USA.gov, the EPA, the FEC, and the Supreme Court -- the group is asking for public input before putting pen to paper. Sunlight wants to know: What kinds of information are missing from the FCC's site? How should information be organized? How should it be presented? How should it be accessed and downloaded? To what extent should the site incorporate social media and how should it be used? The dialogue will take place online through open government discussion groups and at Sunlight Labs site. Click here for more information.
FCC Wireless Bureau Acting Chief James Schlichting wrote to Apple, AT&T and Google on Friday inquiring about recent reports that Apple won't approve the Google Voice application for the iPhone and has removed related (and previously approved) third-party applications from the iPhone App Store. In light of pending FCC proceedings regarding wireless open access and handset exclusivity, the Commission wants a more complete understanding of this situation, he wrote.
Some questions posed in the letters with answers due Aug. 21:
• Why did Apple rejected Google Voice and remove the third party software?
• What related apps were removed or have been rejected?
• Did Apple act alone, or in consultation with AT&T, in rejecting Google Voice?
• Does AT&T have any role in the approval of iPhone applications?
• What other apps have been rejected for iPhone and for what reasons?
• Is there a list of prohibited applications or of categories of applications?
Reps. Edward Markey, D-Mass., and Anna Eshoo, D-Calif., reprised the congressional push for a so-called "network neutrality" mandate on Friday by introducing legislation that would prevent Internet service providers such as telephone and cable companies from interfering with Web content that passes through their pipelines. The bill would essentially bar ISPs from using the claim of network management to impose their own priorities on data traffic, based on financial arrangements or other considerations.
Open Internet groups cheered the move. Public Knowledge President Gigi Sohn said the measure would "bring online certainty to millions of Internet users and companies" and Ben Scott, policy director for Free Press, said the legislation would "help to ensure that the public -- not big phone and cable companies -- controls the fate of the Internet." Prior attempts at legislating in this arena have been met with fierce lobbying for and against the measures but they ultimately failed.
U.S. Telecom Association President Walter McCormick called the bill's introduction "a disappointing but not unexpected development." He said the language "would not preserve Internet freedom, but would instead lead to a government-managed Internet." President Obama, however, has repeatedly called for net neutrality and new FCC Chairman Julius Genachowski plans to fortify the agency's Internet guidelines -- which focus on protecting consumer rights -- by adding a fifth principle explicitly barring discriminatory behavior by broadband providers.
From CongressDaily's AM Edition...
FCC nominees Mignon Clyburn and Meredith Baker were generally noncommittal during their Wednesday confirmation hearing before the Senate Commerce Committee, giving few, if any, hints on how they might decide policy and regulatory issues. That left lawmakers to use the hearing to reiterate their strong criticisms of the commission Clyburn and Baker would join, if confirmed, to fill the remaining Democratic and Republican vacancies, respectively. Read more.
Meanwhile... Senate Commerce Chairman John (Jay) Rockefeller has asked 11 federal agencies, including the FCC, the FTC and the Commerce, Homeland Security and Transportation departments, to report on their cybersecurity preparedness and the effectiveness of their incident-response capabilities. Read more.
And... A group of public interest, library and technology organizations are urging U.S. Trade Representative Ron Kirk to set aside a controversial portion of Anti-Counterfeiting Trade Agreement negotiations focused on "Internet distribution and information technology." Read more.
The two remaining FCC nominees -- South Carolina regulator Mignon Clyburn and former Commerce official Meredith Baker testified before the Senate Commerce Committee on Wednesday afternoon. The Democrat and Republican, respectively, would round out the five-member agency, which now has three regulators, including its new chairman, Julius Genachowski. Read more in CongressDaily later.
One day after officially assuming the top post at FCC, Chairman Julius Genachowski delivered a Tuesday speech to staff during which he stressed that the Commission's "potential as a force for good remains constant." "With each passing day, communications devices and networks become more essential to the fabric of the daily lives of all Americans," he said. "Our communications infrastructure is the foundation upon which our economy and our society rest. And it has never been more important that we unleash its potential." Genachowski, a Harvard Law School classmate of President Obama's and former chief of staff to Clinton-era FCC Chairman Reed Hundt, said the nation is at a crossroads. "We face a number of tremendous challenges: our economy, education, healthcare, and energy, to name a few. If we do our jobs right and harness the power of communications to confront these challenges, we will have chosen the right course, and we will make a real positive difference," he said.
Read the full text of his remarks after the jump.
Blair Levin, the FCC official in charge of coordinating the development of the Obama administration's new national broadband plan, said Monday that a new Web site -- Broadband.gov -- will launch in a matter of days. His remarks came at the Personal Democracy Forum's annual conference where he spoke about the future of the Internet. Levin recently returned to the Commission where he served in the 1990s as chief of staff to former Chairman Reed Hundt. Before rejoining the FCC, Levin was managing director of Stifel Nicholaus and worked on President Obama's transition team. His speech was followed by a policy panel featuring Free Press Executive Director Josh Silver; National Cable and Telecommunications Association Executive Vice President James Assey; AT&T Vice President Hank Hultquist; and PDF co-founder Andrew Rasiej.
Meanwhile, Monday was FCC Chairman Julius Genachowski's first official day on the job and he announced a handful of new hires. His chief of staff will be Edward Lazarus who hails from the law firm Akin, Gump, Strauss, Hauer & Feld. Genachowski also appointed two senior advisors and two legal advisors to assist him on a range of policy issues. Colin Crowell, longtime telecom adviser to Rep. Ed Markey, D-Mass., will serve as senior counselor and Bruce Liang Gottlieb, who was legal advisor to Commissioner Michael Copps, will become chief counsel. Priya Aiyar, Sherrese Smith, Sherry Gelfand, Daniel Ornstein, Mary Beth Richards, and Ruth Milkman will round out his team. (Hat tip, NextGenWeb.org)
A group backed by the Recording Industry Association of America, digital royalty rights collector SoundExchange and other music interests filed a complaint with the FCC late Tuesday claiming that AM and FM radio stations belonging to the National Association of Broadcasters have threatened performers, refused to run their advertisements, and made misleading statements to the public. The filing by the MusicFirst Coalition comes as Congress contemplates whether to end a long-standing royalty exemption afforded to terrestrial radio. "For more than 80 years radio stations have been using the work of artists and musicians without compensating them, now they're using the public airwaves unfairly for their own self interest," said MusicFirst Executive Director Jennifer Bendall. "We respect the First Amendment rights of broadcasters to air their views in this and any debate, but they've crossed the line."
NAB spokesman Dennis Wharton issued a statement calling the allegation "an act of desperation by a record label lobby losing on Capitol Hill and in the court of public opinion." He added that Will.i.am, a vocal proponent of the performance fee legislation, and his group The Black Eyed Peas currently hold the No. 1 slot on Billboard's Pop 100 Airplay Chart with the song "Boom Boom Pow." "If there's an FCC probe involving the music business, it ought to focus on claims from numerous artists -- from The Beatles to Prince to Cher -- that they were cheated out of royalties by their record labels," Wharton said. The House Judiciary Committee recently approved the bill backed by MusicFirst and a companion measure awaits action in the Senate Judiciary Committee.
Stifel Nicolaus managing director Blair Levin will return to familiar territory at the FCC, Acting Chairman Michael Copps announced Friday. Levin, who served as chief of staff to FCC Chairman Reed Hundt from 1993 until 1997, will join the agency to coordinate development of the new national broadband plan starting Monday. During his tenure at the commission, Levin oversaw the implementation of the 1996 Telecommunications Reform Act, the first spectrum auctions, the development of digital television standards, and the FCC's Internet initiative. More recently, he worked on President Obama's transition team where he oversaw a technology, innovation and government reform work group and was a rumored contender for FCC chairman. That job will go to Julius Genachowski, a close friend of Obama's, if he wins Senate confirmation.
Levin's encore performance at the FCC won early praise from tech policy watchers. Computer and Communications Industry Association President Ed Black issued a statement saying he is glad the administration recognized the depth of Levin's experience. "The quality of our new national broadband plan will benefit greatly from his direct involvement," Black said. He also praised the promotion of Mary Beth Richards, currently deputy general counsel, to acting managing director. Black said she is "a superb addition to the 8th floor team with stellar public service credentials in telecommunications and consumer protection."
From CongressDaily's AM Edition...
President Obama announced Wednesday he is nominating Mignon Clyburn, a state regulator in South Carolina and daughter of House Majority Whip James Clyburn for a Democratic seat on the five-member FCC. The younger Clyburn, whose nomination has been anticipated for weeks, has been a member of the South Carolina Public Service Commission since 1998 and its chairwoman from 2002-2004. The PSC "regulates South Carolina's investor owned public utilities, including providers of telecommunications services," according to a White House statement. She would replace Jonathan Adelstein, who was nominated to head the Rural Utilities Service, an Agriculture Department division that issues loans and grants for telecom, energy and water treatment projects.
Two years after being fined $12.5 million by the FCC as part of an anti-payola settlement and agreeing to boost airtime for independent label and local artists, major radio broadcasters have not changed their tune when it comes to composing their music playlists, according to a forthcoming report by the Future of Music Coalition. The results of the nonprofit's yearlong analysis will be released the week of April 20, and the group hopes it will spur the FCC to act. Playlist tracking data, which is compiled in the private sector and sold to stations and others who request the information, should be a function of the commission, FMC spokesman Casey Rae-Hunter said. "We're hoping that the FCC considers this data and takes steps to better understand a key sector that they're charged with overseeing," he said of the report's findings. "Without data and clear policy goals, this is very difficult." Some contend the FCC lacked the political will to address the issue during the Bush administration, but they see an opening with President Obama. Read the full story in CongressDaily's PM Edition (subscription required).
Surf on over to CongressDaily's TechCentral for a new "Issue of the Week." Here's a taste:
Julius Genachowski, the architect of President Barack Obama's technology policy and his pick to run the FCC, quietly made the rounds visiting Senate Commerce Committee members last week, an indication that his formal nomination is near, according to government sources. These courtesy calls will help shape the questioning at his confirmation hearing and provide the public with a glimpse into the mindset of the man who's on track to become the first permanent Democratic agency chief in eight years.
For now, Genachowski's agenda remains shrouded in mystery because he's not granting interviews. But there is one thing that can be said with certainty about his widely anticipated arrival at the FCC in the coming weeks or months: the inboxes on his desk and computer will be overflowing. The two Democrats serving at the commission now -- Acting Chairman Michael Copps and Commissioner Jonathan Adelstein -- are laying the ground work for Genachowski's agenda, and if early indications are any sign, it's ambitious. Policy proposals that remained dormant during the long stretch of Republican control are hastily being dusted off, while regulatory matters that have faced perpetual gridlock could receive fresh attention.
"The Democrats are going to push to see what they can get traction on," said David Kaut, a telecom analyst at the investment firm Stifel Nicolaus, which expects newer players, such as eBay, Google and Yahoo to carry more weight at the agency, with incumbents AT&T, Qwest and Verizon receiving tougher scrutiny. The latter could feel the sting when the commission reviews their requests for relief from existing regulations and discounted rates they're required to charge competitors, though pending litigation in these areas also could guide the agency's hand. Read the full story here (subscription required).
President Barack Obama on Friday nominated FCC Commissioner Jonathan Adelstein to become administrator for the Department of Agriculture's Rural Utilities Service. He has been at the Commission since December 2002. Before joining the FCC, Adelstein served for 15 years as a staff member in the Senate, for the last seven as a senior aide to former Senate Majority Leader Tom Daschle. RUS issues loans and grants for telecom, energy and water treatment projects and is set to receive $2.5 billion in loans from the economic stimulus package to promote broadband deployment.
CongressDaily reported earlier this month that the White House was quietly assembling a list several candidates for the FCC after Obama announced that he wants his chief technology adviser and close confidante Julius Genachowski as chairman. Mignon Clyburn, a state regulator and daughter of House Majority Whip James Clyburn, is a leading contender to replace Adelstein. Senate Commerce Chairman John (Jay) Rockefeller and ranking member Kay Bailey Hutchison, along with Senate Minority Leader Mitch McConnell, are playing an active role in the decision-making to fill a GOP FCC slot. Read CongressDaily's story here (subscription required).
Other key appointments made Friday:
• Steven Koonin, the nominee for under secretary for science at the Energy Department, who is currently chief scientist for BP where he guides the company's technology strategy.
• Priscilla Guthrie, the nominee for chief information officer at the Office of Director of National Intelligence, who is currently IT director at the Institute for Defense Analyses, a nonprofit that administers three federally funded R&D centers.
• David Blumenthal, a former Harvard Medical School professor, to become national coordinator for health IT at the Health and Human Services Department.
A dubiously named industry group formed last year by high-definition television manufacturers VIZIO and Westinghouse Digital to raise awareness about possible price gouging by ATSC-technology patent holders bolstered its Internet presence on Thursday by launching a Web site. The Coalition United to Terminate Financial Abuses of the Television Transition -- or CUT FATT -- said the site will provide "a simple way for consumers to encourage the FCC to hold DTV patent holders accountable, as it has in connection with other violations of digital transition rules. Time is of the essence since analog sets will go dark in just over three months and American consumers are poised to spend more than $2 billion on new digital TVs, CUT FATT spokesman Amos Snead said in a press release.
The FCC recently issued a public notice seeking comment on CUT FATT's petition for rulemaking and request for declaratory filing filed in January that urged the Commission to take immediate action against the alleged mark ups. Visitors to CUTFATT.org can signal their support for that petition by signing an online letter. Comments are due April 27. "When the FCC adopted the ATSC digital television standard, it promised to protect consumers from unreasonable and discriminatory patent fees," Snead said. "CUT FATT applauds the FCC for scrutinizing the demands of patent holders who charge American consumers far more than consumers pay in other countries. Now it is time for American consumers to speak up, and CUT FATT.org makes it easy for them to do so."
CongressDaily's AM Edition on Wednesday reports (subscription required)...
The White House is quietly assembling a list of two -- and potentially three -- more candidates for the FCC now that President Barack Obama announced Tuesday that he wants his chief technology adviser and close confidante Julius Genachowski as chairman. Mignon Clyburn, a state regulator and daughter of House Majority Whip James Clyburn, is a leading contender for Democratic commissioner. The younger Clyburn, who has served on the Public Service Commission of South Carolina for more than a decade, declined to comment.
She would replace Jonathan Adelstein, who is under serious consideration to run the Rural Utilities Service, an Agriculture Department division that issues loans and grants for telecom, energy and water treatment projects. The RUS is set to receive $2.5 billion in loans from the economic stimulus package to promote broadband deployment. Adelstein, whose term expired in June but can remain through 2009 pending renomination, would exit when a successor is confirmed. Sources said the administration doesn't plan to renew his term. Read the full story here.
The House Judiciary Committee Wednesday will hear perspectives on legislation by Judiciary Chairman John Conyers that would end a long-standing copyright royalty exemption granted to AM and FM radio. The bill, backed by the Recording Industry Association of America and other music business stakeholders, has been criticized by the National Association of Broadcasters. The powerful trade group believes the airplay its members provide is an ample reward for performers who sell albums and concert tickets. A Tuesday House Judiciary Commercial and Administrative Law Subcommittee hearing on why bankruptcy protections failed to halt the closure of Circuit City has been cancelled.
Meanwhile, the FCC continues to prepare the nation for the transition to digital television signals -- set to culminate June 12 -- with a Thursday public meeting on the topic. The session is the second to be held under acting FCC Chairman Michael Copps, whose first meeting also focused on the switchover. Also on Thursday, the Information Technology and Innovation Foundation will release a new report on the need for next-generation broadband networks in the United States. The report will document how the transformative functionalities that next-generation broadband enables will unlock a wave of innovative new Web-applications, delivering benefits to consumers, society, businesses, and the economy.
After some viewers of the Super Bowl in Tucson, Arizona, had their regularly scheduled program interrupted with full-frontal male nudity, Comcast says it has already made efforts to communicate with the FCC and Capitol Hill about the incident. "We've proactively reached out to the FCC and members of Congress and will keep them informed as our investigation into this incident progresses," the cable giant said in a statement. "We are reaching out to the proper legal authorities as well and have every intention of referring the individual or individuals found responsible for this act to proper law enforcement authorities for prosecution."
The company said it is going to give a credit to Tucson customers who viewed the inappropriate content and that it is undergoing a thorough investigation to determine what went wrong. "We are mortified by last evening's Super Bowl interruption and we apologize to our customers. Our initial investigation suggests this was an isolated malicious act," said Comcast, which boasts 24.4 million cable customers and 14.7 million high-speed Internet customers. Comcast said that its technical systems appeared to have been working properly when the incident occurred. -- Winter Casey
My colleague Winter Casey spoke with former FCC chief Kevin Martin recently about what advice he would offer his successor at the agency and the key issues he anticipates the commission will be tackling in 2009. The Q&A was published on NationalJournal.com's Lost In Transition blog. Some highlights:
Q: What advice would you like to give to whoever takes over as FCC commissioner
Martin: I would tell them that they should make sure and look hard at the facts and the underlying arguments that are being made and -- while they will have whatever ideology they bring to the issues -- they should be prepared to actually examine the underlying facts and have it be more of a fact-based decision-making process as opposed to just an ideological one.
Q: Is there anything in the telecom realm that needs to be changed that you think could move forward with bipartisan support this year?
Martin: I think that we need to make changes to our universal service mechanism to make sure that we move it from a voice-grade connections to broadband connections. We should make some more progress on cable rates -- cable rates have doubled over the last decade and I think consumers need relief in terms of additional choices and additional competition. And I think there needs to be a continued emphasis on how we make sure the regulatory environment provides an opportunity and incentive for people to invest in the infrastructure and at the same time maintain an open platform to any kinds of application or devices on the edge.
Read the rest of the Q&A here.
Delaying the nation's Feb. 17 switchover from analog to digital television would lead to considerable consumer confusion and additional costs for the U.S. government and the private sector, FCC Chairman Kevin Martin warned during an interview at the Consumer Electronics Show in Las Vegas on Saturday. Earlier this week President-elect Barack Obama proposed pushing back the deadline and it was announced that the federal program to help subsidize the cost of converter boxes for analog TV sets had run out of money. "Ultimately this is up to Congress to decide," Martin told Tech Daily Dose. "But something needs to be done to make sure coupons [for converter boxes] are issued again." he said.
Senate Commerce Committee Chairman John (Jay) Rockefeller issued a statement Thursday saying Obama's team "deserves time to bring to order what has been an appallingly mismanaged process by the Bush administration" and he would support delaying the date "unit we can do it right." Ranking member Kay Bailey Hutchison, however, said it was too early to call for a delay and members should focus on the coupon shortage. Rep. Edward Markey, D-Mass., a senior member of the House Telecommunications and the Internet Subcommittee, said moving the date would involve significant logistical challenges but Congress should immediately consider the feasibility of Obama's proposal.
It's wintertime in Washington so why not head to warm, sunny Florida? FCC Chairman Kevin Martin is doing just that as part of the agency's mission to educate consumers about the upcoming nationwide transition to digital television. Martin will head to Miami on Jan. 3 for a town hall meeting at a Best Buy department store on the Feb. 17 switchover. The forecast calls for sunny skies and 76° weather.
The FCC identified target television markets for specific DTV outreach, including all those markets in which more than 100,000 households or at least 15 percent of the households rely solely on over-the-air signals for TV reception. The five FCC commissioners and senior staff are visiting these and other markets in the days leading up to the transition. Martin will also travel to Indianapolis, Fort Wayne and South Bend, Ind. on Jan 5 and Cincinnati, Dayton and Columbus, Ohio on Jan. 6.
Meanwhile, organizers of the Consumer Electronics Show (Jan. 8-11) have announced that Martin will return to the high-tech extravaganza in Las Vegas for his last appearance as FCC chairman. He and Consumer Electronics Association President Gary Shapiro will have an on-stage chat on Saturday, Jan. 10 about his tenure at the FCC and the challenges likely to confront industry and the Obama administration.
FCC Commissioner Deborah Taylor Tate, who has served on the panel for three years, took part in her last meeting via teleconference on Tuesday. Tate, one of three Republican commissioners at the agency, came to Washington after serving as director of the Tennessee Regulatory Authority and as head of the State and Local Policy Center at Vanderbilt University. She was nominated by President Bush on Nov. 9, 2005 and was confirmed by the Senate the following month.
During her term, Tate focused on children and families and, among other things, led a charge for broadcasters and advertisers to reduce the amount to which they show and promote unhealthy foods. She was also involved in a host of issues surrounding the universal service fund, which subsidizes telecom and Internet connections for citizens, hospitals, libraries and schools in rural- and low-income areas. Fellow Republican Robert McDowell said Tate should also be proud of her efforts to "lift unnecessary regulations in order to allow market competition to grow and flourish."
The FCC released a pair of reports Tuesday that show changes in the coverage of the nation's full-power television stations as they prepare to transition from analog to digital broadcasting on Feb. 17, 2009. The commission initiated the side-by-side comparison to identify the changes associated with the switch to digital broadcasting by TV stations and share the information with viewers nationwide. The FCC also announced it would hold an open meeting via conference call on Dec. 30 but did not say what would be on the agenda.
The first report, which provides maps showing the analog and digital coverage areas for each of the 1,749 full-power TV stations in the United States, found that approximately 89 percent of stations (1,553 stations) will experience an overall net gain in the population that can receive their signals. About 11 percent of stations (196 stations) will have an overall net loss in television viewers. The paper includes a separate map showing the predicted coverage areas for every station and shows the areas of gain or loss.
The second report contains maps and other information for the 319 stations where more than two percent of the population covered by their analog service will not be covered by their digital service. The population losses shown on the maps actually overstate the loss as it includes people who currently receive TV service via cable or satellite, the FCC said. Roughly 11 percent (or 196) stations are predicted to experience some existing population coverage loss of two percent or more.
Michael Calabrese, vice president and director of the wireless future program at the New America Foundation, acknowledges that he may be one of the candidates being considered for a slot as FCC Commissioner in President-elect Barack Obama's administration. "I've heard I'm on a list of people being considered as an FCC commissioner, but I'm sure at this point it's quite a long list,” Calabrese said in response to an inquiry on the topic. Although he added that as far as he is aware there is no formal process yet underway for FCC appointments. Calabrese has previously served as director of domestic policy programs at the Center for National Policy, as general counsel of the Congressional Joint Economic Committee, and as pension and employee benefits counsel at the national AFL-CIO. Calabrese is a graduate of Stanford Business and Law Schools. -- Winter Casey
Free Press, a watchdog group that promotes decentralization in broadcasting, has posted ads in the classified sections of the Washington Post, Washington Times, Politico and The Hill seeking a new leader for the FCC. The tongue-in-cheek "help wanted" ad calls for a chairman who can "take media and technology policy into the 21st century" and states that the applicant "must be willing to hold long and unruly public hearings and enjoy arcane telecom banter… Public interest background strongly preferred. Industry lobbyists need not apply."
The ad goes on to say that "wardrobe malfunctions, NASCAR wreckage and fleeting expletives are discouraged" -- a jab at current FCC Chairman Kevin Martin's crusade against pop star Janet Jackson for flashing a breast during a Super Bowl halftime show; the agency's $355,000 sponsorship of an accident-prone racecar to publicize the digital television transition; and the FCC's war against profanity, indecency and obscenity during live TV and radio broadcasts. Martin poked fun at himself and each topic during the annual Federal Communications Bar Association dinner last month [read CongressDaily's coverage here].
Free Press executive director Josh Silver said by placing the ad his group is doing its part "to make sure that the next head of the FCC is looking out for the public interest." "The person who takes this job will play a major role in transforming the media and shaping the future of the Internet. We need someone whose priorities match the public's demands," he said. The watchdog is asking citizens to rank their top priorities for the next chief of the FCC at www.FreePress.net/wanted.
As expected, FCC Chairman Kevin Martin poked fun at himself at Tuesday night's annual Federal Communications Bar Association dinner. Following a brief line-up of one-liners, he wrapped up his self-deprecating speech with a list of potential positions he might pursue when he leaves office early next year. Some of the funniest suggestions he dished out (to ample applause):
▪ Mailroom clerk at the National Telecommunications and Information Administration sending out digital television converter box coupons in anticipation of the Feb. 17, 2009 transition.
▪ Wardrobe consultant for pop star Janet Jackson, whose infamous "wardrobe malfunction" during the 2004 Super Bowl halftime show resulted in a court battle that the FCC lost.
▪ Running for mayor in Wilmington, N.C., the first market in the United States to make the change to digital-only broadcasting, which has become a pet project of the Commission's.
▪ Playing Harry Potter in a Broadway musical. Many have joked about Martin's boyish, bespectacled look.
From CongressDaily's special coverage...
Google, Intel, Microsoft and other technology giants scored a major victory Tuesday when the FCC permitted them to harness unused broadcast spectrum to offer the next generation of mobile broadband service -- despite strong opposition from television stations. The unanimous agency decision to tap so-called "white spaces" came despite warnings that mobile gadgets using these frequencies would wreak havoc with digital TV signals, as broadcasters complete their switch to the digital spectrum on Feb. 17.
Concerns also were raised about disruptions to wireless microphones at live events, including theatrical performances and football games. Sen. Hillary Clinton, D-N.Y., House Energy and Commerce Chairman John Dingell, and such performers as Dolly Parton and the Dixie Chicks were among the lawmakers and celebrities urging caution.
In other action during an unusual Election Day meeting, the FCC also approved two wireless mergers: Verizon's combination with Alltel to create the nation's largest mobile carrier with more than 80 million customers, and a partnership involving Sprint Nextel and Clearwire. Read the full story here.
From CongressDaily's TechCentral:
Rank-and-file voters won't be the only ones casting their ballots Tuesday: There's also a series of votes scheduled at the FCC, albeit FCC Chairman Kevin Martin is facing mounting blowback from Capitol Hill, state officials and numerous lobbying interests for calling an Election Day commission meeting on major regulatory items without allowing time for public comment. Critics accuse Martin of rushing to act before the next president replaces him as chairman and while FCC Commissioner Deborah Taylor Tate, who was not reconfirmed by Congress, is still at the agency.
There are a number of controversial items at least tentatively on the agenda -- including a restructuring of the rules governing intercarrier compensation, an overhaul of the universal service fund that subsidizes telecom service in rural and low-income areas, and a proposal to allow such high-tech giants as Google, Intel and Microsoft to tap unused broadcast spectrum (so-called white space) for a new wave of mobile wireless broadband applications. Also on Tuesday's packed schedule: votes on Verizon's planned merger with Alltel -- thereby creating the nation's largest wireless phone company -- as well as Sprint's proposed wireless partnership with the high-speed Internet provider Clearwire Corp.
Over the weekend, David Oxenford at the Broadcast Law Blog pondered what would happen if radio hosts in the United States prank called vice presidential candidate Sarah Palin (or any public official or private citizen for that matter) and aired the interview without permission. His commentary comes on the heels of news that a pair of Canadian shock jocks tricked the Alaska governor into engaging in an on-air conversation under the premise that she was talking to French President Nicholas Sarkozy. Had such a stunt been executed here, it would have led to an FCC fine, he wrote.
"Under U.S. law, you cannot air a telephone conversation on a broadcast station without first getting the permission of the person at the other end of the line -- even if the person just says 'hello' before being informed that they are on the air, and even if they are a public official," he said. The FCC rules were made clear in a recent FCC ruling that fined a station $4,000 for failing to inform two airport employees that they were on the air when the station called to ask about certain policies concerning taxis at the airport. The station argued that the interviewees were public officials and the conversation was newsworthy, but the FCC rejected that argument.
Listen to the conversation between the Quebec comedy duo "The Masked Avengers" and an unsuspecting Palin here and read a transcript here. Palin's campaign issued the following response: "Governor Palin was mildly amused to learn that she had joined the ranks of heads of state, including President Sarkozy and other celebrities, in being targeted by these pranksters. C'est la vie."
From the Nov. 1 issue of National Journal magazine:
A-list music stars usually don't care much about the workings of Washington -- except when you mess with their mikes. The rock band Maroon 5, pop princess Miley Cyrus, country crooners the Dixie Chicks, and "American Idol" contestants Clay Aiken and David Archuleta are among the more than 100 musicians urging the Federal Communications Commission to tread cautiously ahead of a Tuesday vote that the entertainers fear could impair their ability to deliver state-of-the-art live performances.
The FCC has been pressured by companies such as Google and Microsoft to open vacant portions of the television spectrum to unlicensed wireless devices after February's nationwide transition to digital TV, but performers worry that such a move could interfere with wireless microphones at concerts. High-tech firms want to use the airwaves, called "white space," for new wireless Internet services.
Google spokesman Adam Kovacevich said that the 20,000 Americans who have petitioned the FCC to open the airwaves "may not be regulars in the pages of Us Weekly, but when it comes to expanding broadband access ... it's consumers who are the experts, not celebrities."
The Justice Department will require Verizon Communications to divest assets in 100 areas in 22 states in order to proceed with its $28 billion buyout of Alltel Corp., the agency announced Thursday. The department said the transaction as originally proposed would have substantially lessened competition to the detriment of consumers of mobile wireless telecommunications services in those areas, and likely would result in higher prices, lower quality and reduced network investments.
The divestitures cover the entire states of North Dakota and South Dakota; swaths of the states of Colorado, Georgia, Kansas, Montana, South Carolina, Utah and Wyoming; and portions of the states of Alabama, Arizona, California, Idaho, Illinois, Iowa, Minnesota, Nebraska, Nevada, New Mexico, North Carolina, Ohio and Virginia, a DOJ press release said. The agency's antitrust division, along with attorneys general for several states filed a civil suit in a Washington, D.C. federal court to block the deal and offered a proposed settlement that, if approved by the court, would resolve competitive concerns.
According to the complaint, Verizon and Alltel are rivals and each is the other’s closest competitor for a significant set of customers in 94 cellular marketing areas, as defined by the FCC. The complaint alleges that the proposed transaction would substantially reduce competition for wireless services in each of those areas. The proposed settlement requires divestitures in these 94 areas to eliminate the competitive concerns. Proposed modifications to two existing consent decrees would require Verizon to divest businesses in six additional areas, officials said.
Continue reading DOJ Requires Divestitures In Verizon-Alltel Buyout.
Media watchdog Free Press called on the FCC on Tuesday to require all broadband providers to disclose any practice that monitors or interferes with their customers' Internet use. In addition to transparent "network management" practices, the group wants the commission to require Internet service providers to publicly disclose the minimum broadband speed guaranteed -- not just the maximum potential speed offered. Free Press's filing is available here.
Two recent cases highlight the urgent need for tougher disclosure requirements, Free Press said in a release. Online marketer NebuAd partnered with several broadband firms to monitor and reroute user data into private servers until a congressional inquiry exposed the practice. Comcast also secretly stymied users' access to online applications before an FCC investigation led to an about-face. In light of those instances, Free Press asked the FCC to propose rules that would ensure consumers know what speeds they're getting and how their Internet activities are being handled by broadband providers.
Television evangelist Joel Osteen, perhaps one of the biggest stars in the modern-day religion business, has written to FCC Chairman Kevin Martin asking that the Commission not allow technology companies to bring to market new wireless devices that will "most certainly" interfere with wireless microphone use. Osteen, whose weekly broadcast from Lakewood Church in Houston, Texas, reaches more than 2 million viewers, pointed out in his letter that “wireless microphones allow pastors and musicians to interact more closely with members or our congregation.”
The celebrity clergyman and best-selling author joins a list of other prominent wireless microphone users including the NFL, NASCAR, Broadway, Grand Ole Opry, MTV, Country Music Association, Cirque du Soliel, and the National Religious Broadcasters who have all asked the FCC to protect their transmissions. Osteen asked the Commission not to “turn a blind eye” to wireless microphone use in houses of worship, noting that the devices are essential to the success of his mega-church.
Surf on over to CongressDaily's TechCentral for a new "Issue of the Week." Here's a taste:
When House lawmakers disclosed plans last December to investigate the FCC and allegations that Chairman Kevin Martin employed heavy-handed tactics to pursue his deregulatory agenda, expectations were high that he and other regulators would be grilled in public hearings and a scathing report eventually would lay out incriminating evidence of misconduct.
The House Energy and Commerce Committee kept busy for months reviewing internal electronic records dating back to 2005 and collecting 40 boxes of documents as investigators met privately with current and former FCC employees, among others.
Staffers examined a wide range of allegations, including concerns Martin had put veteran employees out to pasture to make room for political cronies, suppressed or altered reports that didn't reflect his views and restricted internal communication through iron-fisted policies. A leaked committee staff memo in April recommended hearings in June and concluded that the FCC "appears broken and most of the blame appears to rest with Chairman Martin."
The FCC released its opinion and order on Wednesday detailing its Aug. 1 ruling that Comcast’s interference with its customers Web traffic violated the commission’s policies and was not reasonable network management. The documents are available here. CongressDaily's earlier coverage is here.
At the time of the decision, Comcast's Sena Fitzmaurice said her company was "gratified that the commission did not find any conduct by Comcast that justified a fine and that the deadline established in the order is the same self-imposed deadline that we announced four months ago." On the other hand, the cable and Internet giant was disappointed in the commission's divided conclusion "because we believe that our network management choices were reasonable, wholly consistent with industry practices and that we did not block access to Web sites or online applications."
"The FCC acted to protect the rights of Internet users and set the precedent that unreasonable, discriminatory behavior like Comcast’s will not be tolerated," Public Knowledge President Gigi Sohn said in a Wednesday statement. "We commend the Commission for stepping in to preserve the public interest and addressing the substantial threat posed by Comcast’s conduct to the open character of the Internet."
My colleague David Hatch wrote in CongressDaily's PM Edition on Friday that the FCC has taken steps to prevent Comcast from impeding online traffic and threatened the company with additional penalties -- including fines -- if it fails to comply with its directives. Comcast was instructed to detail by Dec. 31 how it will end its discriminatory network management practices and to better disclose policies to customers.
Some reax:
"We are gratified that the Commission did not find any conduct by Comcast that justified a fine and that the deadline established in the order is the same self-imposed deadline that we announced four months ago. On the other hand, we are disappointed in the Commission’s divided conclusion because we believe that our network management choices were reasonable, wholly consistent with industry practices and that we did not block access to Web sites or online applications, including peer-to-peer services." -- Comcast's Sena Fitzmaurice
"Without making a judgment on the substance of today’s ruling, it is clear that the Federal Communication Commission is prepared to uphold its broadband principles. Now the entire industry should redouble its efforts to set standards for transparency and ensure that consumers know what they are getting when purchasing access or using applications." -- Verizon's Tom Tauke
"CDT agrees with the ruling's apparent premise that broadband providers should not target specific applications for inferior treatment and should be much more transparent about network management practices. CDT has serious concerns, however, about the potential breadth of the Commission's assertion of authority and the risk that it could open the door to greater FCC regulatory involvement in Internet issues." -- Center for Democracy and Technology
Continue reading FCC Wags Finger At Comcast For Web Practices.
If you haven’t heard about the FCC clearing the XM/Sirius merger by this morning, you're late to the ballgame. Rather than write something original, Tech Daily Dose provides some helpful quotes and links so you can build your own story.
Sirius satellite radio announces equity offerings and related share borrow facility -- www.sirius.com
XM and Sirius confirm discussions to settle FCC enforcement matters -- www.siriusmerger.com
“Consumers will be better off than had the merger been granted without any conditions. At the same time, we eagerly await the details of the Commission’s order to see more closely the degree to which the conditions will serve the public interest.” -- Public Knowledge
"This sweetheart deal for Wall Street speculators is premised on a promise that a monopoly will provide consumers with lower prices, better service and more programming formats. Only members of the Flat Earth Society would buy into such specious nonsense." -- National Association of Broadcasters
"The FCC's approval of the merger of Sirius and XM undermines public radio and, in turn, the public's access to our services… The public interest is not being served in this decision." -- National Public Radio
The Recording Academy, best known for its annual Grammy Awards, has invited the FCC to test prototype "white space" devices at the Lollapalooza Festival in Chicago next month. Academy Vice President Daryl Friedman wrote to the Commission on Thursday about its plan to open vacant portions of the television spectrum to unlicensed wireless products, reiterating his belief that the agency should proceed with caution before approving new technologies.
"The Recording Academy wants to extend its expertise and resources to the Commission as you set forth to execute your testing plans at an 'entertainment venue'" he wrote, suggesting the Aug. 1-3 rock extravaganza as an ideal test-bed. "We believe the test results from this festival would lend significant value and engineering insight for the Commission to consider in its subsequent deliberations on the final rules."
The concert, which will feature performances by Bloc Party, Butch Walker, Duffy, Radiohead and others, is sponsored by AT&T. Also of potential interest to the FCC -- a performance by VHS or Beta, a Louisville, Ky. band that fuses rock, French house and dance-punk.
Tech/telecom attorney David Oxenford posted an interesting item on his Broadcast Law Blog on Monday morning as newscasts reported the passing of George Carlin. The comedian effectively wrote the indecency regulations that most broadcasters abide by -- without the FCC ever having had to adopt the regulations that he attributed to them.
In the broadcast world, Carlin was probably best known for his routine about the seven words that you can never say on TV. When the shtick aired on a New York radio station, a parent complained and the resulting FCC action against the station went all the way to the Supreme Court. The court upheld the right of the FCC to adopt indecency rules for broadcast media to channel speech that is indecent, though not legally obscene, into hours when children are not likely to be listening.
Read Oxenford's full post here.
U.S. Electronics, which used to produce receivers for Sirius Satellite Radio, has filed a Freedom of Information Act complaint against the FCC to try to get information from Sirius and rival XM before the commission rules on their proposed merger. The materials sought are "directly relevant to the FCC’s determination whether the public interest will be served or harmed" by the pairing, the complaint states.
According to a press release, the documents requested relate to Sirius and XM's alleged noncompliance with various FCC regulations, including: failure to make available an interoperable radio almost 10 years after the FCC required them to do so; noncompliance with tower and antenna placement authorization and allowable transmitting levels; and deliberately exceeding FCC emission standards.
"These documents are likely to speak directly to the candor of Sirius and XM." U.S. Electronics' Kathy Wallman said, noting that the satellite radio providers are "fighting awfully hard to keep these documents from seeing the light of day; it makes you wonder what they are trying to hide."
The FCC is expected to consider the pending merger between Sirius Satellite Radio and rival XM -- and approve it with conditions by May 1 or soon thereafter, Medley Global Advisors said in an e-mail update Tuesday. The Justice Department OK'd the pairing on Monday after more than a year-long review.
While FCC Chairman Kevin Martin may try to circulate an order seeking approval of the transaction in the weeks ahead, analysts said Congress and all five FCC commissioners maintain drastically different views on merger approval orders and the broader issue of media consolidation.
Martin's two Republican colleagues -- Deborah Taylor Tate and Robert McDowell -- are "likely to insist that no conditions be placed" on the deal but one exception may involve a condition supported by one or both to extend the FCC's indecency rules to the merged entity to ensure that edgy content is kept in check, Medley said.
The FCC's two Democrats -- Jonathan Adelstein and Michael Copps -- "may be inclined to support meaningful behavioral safeguards to reduce the potential for anticompetitive harms to occur given concerns raised by some ratepayer groups," analysts added. "It will be no easy task to strike this balancing act."
Possible conditions, according to the analysts, include:
- The a la carte/tiered programming package option
- Price caps (for three to five years)
- Spectrum spin-offs to noncommercial and minority programmers
- Mandatory device interoperability
- Prohibition on sole-source contracts on devices
StopBigMedia.com, a coalition aimed at fighting media consolidation, has teamed up with the Harry Potter Alliance to mobilize thousands of fans of the fictional boy wizard. The two groups launched Potterwatch on Wednesday -- an effort that uses the character to illustrate the dangers of allowing big business to swallow up local media outlets.
In the book series, wizarding newspapers like the Daily Prophet put the magical community in jeopardy "by denying Voldemort's return … and ultimately becoming a mouthpiece for Voldemort," alliance creator Andrew Slack said in a press release.
[Disclaimer: I've never read a Potter book or seen a Potter movie so I have no idea what this guy is talking about but I'm sure those of you who are in the know either agree or disagree with his thesis.]
The Potterwatch movement brought together opponents of the sinister Voldemort, Slack said. StopBigMedia.com and the alliance "have come together to create a Potterwatch movement in the real world to fight back against 'Voldemedia' -- the handful of companies that control most of what we see, hear and read every day."
The groups are urging fans to speak out against FCC Chairman Kevin Martin's plan to loosen media ownership rules later this month. Ironically, some policy watchers have whispered that Martin looks a little like the spellbinding whippersnapper. Go figure.
Highlights from Wednesday night’s annual FCC Chairman’s Dinner at the Washington Hilton, sponsored by the Federal Communications Bar Association. FCC Chief Kevin Martin, weary from a long day before Congress, poked fun at his recent battles with lawmakers and the cable industry:
“I have to admit that I usually dread delivering this speech. I’m not nearly as good at comedy as – oh, I don’t know – say charming my fellow FCC commissioners.”
“This year I can say I'm actually thrilled to be here. In fact, if I weren't at this dinner, I'd still be testifying before Congress.”
“Now I recognize that I’ve brought some of my recent problems on myself. For example, my cable choice proposal. You know the one, where cable gets to choose to do whatever I say.”
“But seriously, I’ve heard your complaints about how late the meetings have been starting. So I’d thought I’d start my next one early. So I’d like to welcome everyone to the December . . . [laughter]”
“Honestly, though, enough is enough with these late-night meetings. I just can’t keep delaying the meetings so you can run up your billable hours anymore. I think the clients are catching on.”
“I recognize that as rough as things are right now, they could be a lot worse. Some of you might remember a recent headline from the Washington Post” (The headline “Chinese Regulator is Sentenced to Death” was displayed on video screens throughout the ballroom)
“I should wrap it up here. I have another Senate hearing next week. Hopefully I’ve accomplished my real goal for the evening – doing enough bad jokes that they’ll criticize me for the jokes rather than my policies.”
Continue reading Kevin Martin & Eddie Fritts: Kings Of Comedy?.
The Consumer Federation of America, Consumers Union and Free Press on Monday urged the FCC to reject the proposed merger between Sirius Satellite Radio and XM. The groups argued in a report that the pairing would eliminate competition and negatively impact American consumers.
"Leaving one company to monopolize the satellite radio industry would result in higher prices and fewer choices," CFA Research Director Mark Cooper said. CU Vice President Gene Kimmelman added that the companies have failed to make the case for ending the explicit prohibition on mergers between satellite licensees.
Using the FCC's own data on radio stations, the organizations attempted to show that satellite radio and terrestrial radio are not close substitutes and argued that Sirius and XM's offerings do not compete with iTunes or Internet radio.
Sirius and XM responded with this joint statement: "Examining this merger on its merits shows that the lower prices and greater choices that will result, including for the first time two a la carte programming options, are clearly in the public interest and will help strengthen competition in the vast audio entertainment market."
The companies pointed out that other public interest and consumer-oriented outfits have expressed support for the merger, including the Competitive Enterprise Institute, League of Rural Voters, League of United Latin American Citizens and the NAACP.
The Washington Times on Monday published a column by Rep. Rick Boucher, a Virginia Democrat and co-chair of the Congressional Internet Caucus, backing the pending merger of satellite radio giants Sirius and XM.
By year-end, the Justice Department and the FCC should have completed their review of the proposed pairing, and "because the merger will promote competition and benefit consumers, it should be approved," he wrote.
"At first blush, one might conclude that a combination of the only two providers of this satellite-based service would be an obvious antitrust abridgement," but "the reality of the relevant market, however, is both more subtle and more compelling," he stated. Read the full column here.
The estimated $14 billion deal also has its critics on Capitol Hill. The National Association of Broadcasters is keeping count, with a list of more than 80 lawmakers who reportedly have expressed opposition. Among them is Sen. Herb Kohl, a Democrat from Wisconsin and chairman of the Senate Judiciary Antitrust Subcommittee.
Former FCC Chairman Reed Hundt voiced support for the merger of satellite radio giants Sirius and XM in a Tuesday filing with the agency. During his four year tenure as chief, which ended in 1997, the commission formulated rules for the industry and granted the companies their licenses.
"I think that if XM and Sirius combined, it will be pro-competitive in all likelihood," Hundt said in transcripts from an interview. "It seems to me that what has happened over time is that these two firms have proved when kept apart to be incapable of mounting the really serious competition against … terrestrial radio that I had always hoped for."
He also clarified for the record the intention behind the FCC’s 1997 order creating satellite radio: "My thought was this: Let's start out with these two licenses, since it is not clear exactly what is the optimal business model, and then let's let the two firms go at it for a while and see what happens."
Read more of Hundt's thoughts on the merger here.
Technology Daily's best article lede of the week award goes to my colleague David Hatch for his coverage of Wednesday's FCC meeting. Here's how he started off his story:
Media consolidation opponents turned out in force at a high-profile Halloween Day FCC meeting featuring a protest outside the agency, activists in cheerleader uniforms, and a self-described "corporate media whore" in a French maid outfit who briefly upstaged the agency's chairman while being momentarily detained in the hearing room.
Read the entire article here.
Top brass from Sirius Satellite Radio and XM Satellite Radio paid visits to the FCC last week, according to agency filings (via the Orbitcast blog). The companies are trying to persuade commissioners to approve a pending merger estimated to be worth $13 billion.
Sirius honchos Mel Karmazin, Scott Greenstein, David Frear, Patrick Donnelly and Terry Smith took part in a Thursday meeting. A day earlier, XM's Gary Parsons, Eric Logan, Mark Vendetti and Jeff Blattner made an appearance.
During the meetings, executives discussed various aspects of the satellite radio business, "including the topics of subscribers and service, content and advertising, technical issues, and business relationships with automobile manufacturers and retail outlets."
Meanwhile, the National Association of Broadcasters' opposition to the deal continued. NAB spokesman Dennis Wharton issued a statement last week noting that XM and Sirius are spending millions "trying to bamboozle the Beltway into believing that a monopoly is good for consumers. Never in history has a monopoly served consumers better than competition."
The FCC voted Tuesday to adopt ambitious new rules designed to impose "open access" conditions on a slice of the wireless airwaves' spectrum. The conditions, a compromise championed by Chairman Kevin Martin, a Republican, divided the communications sector and Capitol Hill recently.
Technology Daily's David Hatch has a thorough article on the topic here and our very own Theresa Poulson worked up a handy chart that breaks down the spectrum of opinions on the auction rules.
As the fight over the proposed merger of satellite radio rivals Sirius and XM heated up with new filings from supporters and opponents this week [read Technology Daily's coverage], think tanks also got in on the action.
The Competitive Enterprise Institute, the Progress and Freedom Foundation and The Free State Foundation all weighed in by sending comments to the FCC about the estimated $13 billion pairing.
CEI said stakeholders "ought not petition the FCC to tighten its regulatory grip, but rather phase out that agency’s involvement in price, entry and ownership regulation in frontier technologies altogether."
According to the group, antitrust activism will "hobble tomorrow's technology and communications sectors, painting a bulls-eye on the back of competitors that rise above the fray or engage in large-scale transactions."
"Competition, properly understood, has little to do with the number of competitors and industry concentration ratios that bewitch government commissions," CEI said. It is better understood as "an extension of the same 'voluntarism' that characterizes a free society that enshrines property and the right of contract."
Continue reading Think Tanks Speak Out About Sirius-XM Merger.
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