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Tag: FCC

  • AT&T Slams Feds Using T-Mobile Layoffs

    AT&T Slams Feds Using T-Mobile Layoffs

    In a statement from Jim Cicconi, AT&T Senior EVP of External and Legislative Affairs, posted on AT&T’s policy blog this morning, the company slams the FCC by seemingly mocking T-mobile, who is in the process of laying off 1900 call center employees. AT&T asserts that they would’ve kept the call centers in business, if the FCC would’ve listened to them. Essentially, Cicconi’s statement blames the FCC for T-Mobile closing up some of its shop.

    Below is Cicconi’s blog post:

    “Yesterday, T-Mobile made the sad announcement that it would be closing seven call centers, laying off thousands of workers, and that more layoff announcements may follow. Normally, we’d not comment on something like this. But I feel this is an exception for one big reason– only a few months ago AT&T promised to preserve these very same call centers and jobs if our merger was approved. We also predicted that if the merger failed, T-Mobile would be forced into major layoffs.

    “At that time, the current FCC not only rejected our pledges and predictions, they also questioned our credibility. The FCC argued that the merger would cost jobs, not preserve them, and that rejecting it would save jobs. In short, the FCC said they were right, we were wrong, and did so in an aggressive and adamant way.

    “Rarely are a regulatory agency’s predictive judgments proven so wrong so fast. But for the government’s decision, centers now being closed would be staying open, workers now facing layoffs would have job guarantees, and communities facing turmoil would have security. Only a few months later, the truth of who was right is sadly obvious.

    “So what’s the lesson here? For one thing, it’s a reminder of why “regulatory humility” should be more than a slogan. The FCC may consider itself an expert agency on telecom, but it is not omniscient. And when it ventures far afield from technical issues, and into judgments about employment or predictions about business decisions, it has often been wildly wrong. The other lesson is even more important, and should be sobering. It is a reminder that in government, as in life, decisions have consequences. One must approach them not as an exercise of power but instead of responsibility, because, as I learned in my years of public service, the price of a bad decision is too often paid by someone else.”

    AT&T, apparently still miffed over the fact that its old plans for a merger with T-Mobile are long-dead, has basically pointed out the obvious – that T-Mobile is a struggling company.

    Very recently, the U.S. Department of Justice filed a lawsuit against AT&T for overcharging disabled people on their phone bills, by violating certain FCC rules. Naturally, AT&T denied any wrongdoing, and released the following statement on the matter:

    AT&T has followed the FCC’s rules for providing IP Relay services for disabled customers and for seeking reimbursement for those services. As the FCC is aware, it is always possible for an individual to misuse IP Relay services, just as someone can misuse the postal system or an email account, but FCC rules require that we complete all calls by customers who identify themselves as disabled.

    I wonder if I should contact the FCC the next time i receive a confusing Family Plan bill from AT&T.

  • FCC Targets Botnets With New Anti-Bot Code Of Conduct

    FCC Targets Botnets With New Anti-Bot Code Of Conduct

    With one of every ten computers in the United States infected by bots, botnets have officially become enough of a menace/threat/foe to the U.S. government that its launching an initiative to reduce their number.

    Announced earlier today, The Online Trust Alliance joined a unanimous vote at the Federal Communications Commission’s council for communications security, approving the voluntary U.S. Anti-Bot Code of Conduct for Internet Service Providers. You ready for this? The shorthand version of the bill is known as “the ABCs for ISPs.” Cute, isn’t it?

    As a member of the council appointed by FCC Chairman Julius Genachowski, the OTA has been working with the FCC and leading ISPs to develop this voluntary Code in order to help protect the infrastructure of the country’s communications as well as consumer data. Bots, as you may or may not know, can be deployed to do anything from send out spam to eavesdrop on network traffic to swiping passwords from users.

    “Today is an example of the importance of self-regulatory efforts to help improve the safety and performance of the internet,” said Craig Spiezle, executive director and President of the Online Trust Alliance. “Sustainable solutions to contain bots must include all stakeholders in efforts to detect, prevent, and remediate these threats.”

    Chairman Genachowski added, “The recommendations approved today identify smart, practical, voluntary solutions that will materially improve the cyber security of commercial networks and bolster the broader endeavors of our federal partners.”

    The development of the ABCs for ISPs was developed over the past 12 months with the participation of trade associations and companies, including OTA members PayPal, Microsoft, Symantec, and Internet Identity, and leading ISPs, including Comcast and CenturyLink. Approximately 29% (or 23 million) of all U.S. households that have broadband service will gain added protection from ISPs who have adopted the Anti-Bot Code of Conduct. Focusing on residential users, the Code includes five areas of focus for ISPs: education, detection, notification, remediation, and collaboration (EDNRC? Doesn’t quite follow in line with the previous acronyms).

    To participate in the Code, ISPs will be required to complete at least one activity in each of those five areas:

  • Education – an activity intended to help increase end-user education and awareness of botnet issues and how to help prevent bot infections;
  • Detection – an activity intended to identify botnet activity in the ISP’s network, obtain information on botnet activity in the ISP’s network, or enable end-users to self-determine potential bot infections on their end-user devices;
  • Notification – an activity intended to notify customers of suspected bot infections or enable customers to determine if they may be infected by a bot;
  • Remediation – an activity intended to provide information to end-users about how they can remediate bot infections, or to assist end-users in remediating bot infections;
  • Collaboration – an activity to share with other ISPs feedback and experience learned from the participating ISP’s Code activities.
  • Future OTA reports will track adoption, highlighting those ISPs who have asserted their implementation of the Code. As independent organizations committed to enhancing online trust and confidence, ISPs are encouraged to report to OTA. Future reports will include the adoption of similar efforts by other stakeholders and industry segments. Additional information and the link to the Code are posted at https://otalliance.org/botnets.html.

  • F.C.C. Reviews Current Policies On Disruption

    F.C.C. Reviews Current Policies On Disruption

    The Federal Communication Commission is reviewing documents to see if there is reason to create rules for when emergency workers and law enforcement can disrupt cell phone communication and internet service to preserve public safety. As the FCC reviews current policies on disruption, Julius Genachowski, the F.C.C. chairman, made statements regarding conditions for a shutdown:

    “Our democracy, our society and our safety all require communications networks that are available and open,”

    “The F.C.C., as the agency with oversight of our communications networks, is committed to preserving their availability and openness, and to harnessing communications technologies to protect the public.”

    Legal director for Public Knowledge, Harold Feld made these statements about the review:

    “The same wireless network that police see as a tool for rioters to coordinate is the same wireless network used by peaceful protesters to exercise our fundamental freedoms,”

    “In any event, the network will be necessary for people in the area to call for help or to let family members know they are not harmed.”

    Currently about 70% of all emergency 911 calls come from cellular telephones, so there would need to be a method where communication could be disrupted, but not interfere with service to emergency networks. I doubt this is possible.

    From what I can understand, there doesn’t appear to be a legitimate reason to disrupt services. If there initial report doesn’t find that disruption causes more harm than good, it’s probably because they haven’t look at it logically. Which is bound to happen. Thanks again for spending valuable funds examining what for most would be a common sense issue.

    Regardless, the F.C.C. reviews current policies on disruption. We’ll look forward to some complex new legislation that will be enforced at the worst possible moment putting thousands of peoples lives in danger. We’ll keep you updated on what they find, if anything.

  • Verizon Explains Stance On Bootloaders To FCC

    Verizon Explains Stance On Bootloaders To FCC

    Verizon has responded to a complaint filed to the FCC concerning the locking of bootloaders on its Android phones. The lockdown, done to prevent users from rooting their Android phones, has long been a sore point for many Android users. Rooting, like jailbreaking an iOS device, allows a higher degree of customization than the OS itself is designed to allow. The bootloader is the section of the phone’s memory where the system files are stored. Locking down the bootloader prevents access to the system files, and therefore makes rooting an Android phone considerably harder.

    While handset manufacturers have generally not been bothered by users having access to the bootloader, carriers have taken a somewhat different view. Carriers often request that the manufacturers lock the bootloader on their phones. Verizon, for example, insists that the bootloader on all its DROID phones be locked. One user, though, got frustrated enough at Verizon that he filed a complaint with the FCC. The complaint alleges that Verizon violates the terms of its spectrum licenses by locking the bootloader on their phones.

    Verizon Responds to the FCC

    What do you think of Verizon’s response? Let us know in the comments.

  • T-Mobile, MetroPCS Want the FCC To Stop Verizon’s Spectrum Grab

    T-Mobile, MetroPCS Want the FCC To Stop Verizon’s Spectrum Grab

    Verizon Wireless has ideas of securing a big chunk of the unused wireless spectrum by purchasing it from companies like Time Warner, Bright House Networks, and Cox Communications. Such an agreement would give Verizon Wireless increased access and control over the wireless spectrum, something Verizon is already assured before the acquisition, considering its position as the leading wireless provider.

    If the acquisition is approved, Verizon Wireless’ control over the wireless spectrum would increase exponentially. With that in mind, perhaps it’s no surprise that T-Mobile and MetroPCS are asking the FCC to block Verizon’s attempt. According to the New York Post, both “lesser” wireless providers are taking the position that such an acquisition would put give Verizon and “excessive concentration” of the wireless spectrum; something akin to a monopoly. MetroPCS indicated Verizon and those companies offering the spectrum did not prove whether or not such a dramatic shift in wireless spectrum control serves the interests of the public.

    It should also be noted that because both dissenters are smaller providers than Verizon, their spectrum allocation is not as big as their lead competitor. From Verizon’s perspective, the wireless spectrum which they are going after is unused, and if the deal is allowed to go ahead as planned, this unused spectrum would be made available to the public, which is indeed a good thing; however, does it need to be acquired by Verizon (or its competitors) before consumers have access to it? Or does Time Warner, et al, lack the business/technical savvy to create a wireless service with the unused spectrum?

    Considering the details of the acquisition, which, according to the New York Post, are as follows:

    n early December, Verizon Wireless announced a deal to buy spectrum from Comcast, Time Warner Cable and Bright House Networks for $3.6 billion. The cable companies had bought the spectrum jointly at an FCC auction in 2006, with loose plans to start a wireless company or form a joint venture with one. Those plans never came to fruition

    It’s clearly easier to sell the unused spectrum than it is to create a reliable wireless network. In fact, based on the details provided, it’s clear neither Time Warner or Bright House are interested in creating such a network in-house. Apparently, they’d rather rely on Verizon to do the heavy lifting.

    Something else to consider, while T-Mobile’s position is understandable, could this be a case of them making waves after the AT&T deal was blocked?

  • Payroll Tax Cut Bill Comes With Spectrum Auction Funding

    Payroll Tax Cut Bill Comes With Spectrum Auction Funding

    Today, Washington passed the Middle Class Tax Relief and Job Creation Act, extending the Payroll Tax Cut and unemployment benefits. Part of this was the authorization of the FCC to auction off wireless spectrum, which was proposed in the National Broadband Plan, introduced in 2010.

    Essentially, broadcasters with spectrum to spare forfeit the extra, and get some of the money the auctions generate.

    CTIA – The Wireless Association President and CEO Steve Largent issued the following statement:

    “For more than three years, CTIA and its members have been advocating for more spectrum so America’s wireless industry can remain the world’s leader in the deployment of advanced wireless services. Today’s bipartisan vote to pass the Middle Class Tax Relief and Job Creation Act, which includes provisions to make a substantial swath of spectrum available for commercial use, represents an important step toward meeting the industry’s spectrum needs.

    “We are grateful to Representatives Upton, Walden, Waxman and Eshoo and Senators Rockefeller and Hutchison for their leadership throughout this process. Their dedication and focus were paramount to securing the bipartisan and bicameral support necessary to enact spectrum reform. We also appreciate FCC Chairman Genachowski and the FCC commissioners for their contribution to this effort.

    “Ultimately, today’s vote was a resounding victory for consumers and the American economy. Making spectrum available will make it possible for America’s wireless carriers to offer consumers better, faster, more ubiquitous wireless broadband service. The release of additional spectrum also will spur the investment and job creation that our economy needs.”

    Additionally, CNET shares statements from AT&T and Sprint:

    “This provides procedural safeguards, and also an opportunity for a court challenge,” said Jim Cicconi, head of legislative affairs for AT&T, said in a statement. “We take the FCC Chairman at his word when he says there is no intent to have closed auctions that deny AT&T and other carriers the ability to fairly and fully participate, but we also feel it important that Congress has now made its views clear as well.”

    “Sprint agrees with the Federal Communications Commission that all wireless carriers–small, regional and large–should have a meaningful chance to participate in wireless spectrum auctions,” Vonya B. McCann, senior vice president of Government Affairs for Sprint, said in a statement. “While we didn’t see the need to amend the statute, the compromise language approved by the conferees preserves the FCC’s ability to promote competition as it conducts future wireless spectrum auctions.”

    WebProNews recently interviewed Bruce Mehlman, former Assistant Secretary of Commerce for Tech Policy & Co-Chair of the Internet Innovation Alliance. Here’s what he had to say about the auctions:

  • Want To Cancel Your Cable In Favor Of The Web? How Cable Companies Aim To Stop You

    Want To Cancel Your Cable In Favor Of The Web? How Cable Companies Aim To Stop You

    The FCC has a fight on its hands between cable companies and Internet streaming set-top box companies such as Boxee. The cable companies are pushing the FCC to make a change to current regulation in order to allow them to encrypt basic cable programming.

    Do you want to cancel your cable and get all of your viewing entertainment online? Let us know in the comments.

    Their argument is that they would be able to answer service calls remotely instead of sending out technical support, which would mean a reduction in cable costs. They also say this move could reduce piracy.

    On the other hand, Boxee and companies similar to it believe the policy change could be harmful to both consumers and competition.

    “We looked hard to see what consumer benefits could come out of that ruling, and we couldn’t find any,” said Boxee CEO Avner Ronen in a recent interview.

    Should the FCC allow cable operators to encrypt basic cable? What do you think?

    Avner Ronen, CEO of Boxee Ronen believes the cable companies are hoping to gain revenue and block cable alternatives. As he explained to us, if the FCC changes the regulation, consumers would need to get a set-top box from their cable provider. This, in turn, would mean consumers would pay an additional monthly fee to their cable companies for renting the boxes.

    “This is a great way for them to just increase the revenue they get per user, on one hand, and try and slow down the trend,” he said.

    The “trend” he is speaking of is what has commonly been referred to as “cord cutting.” It’s gaining a lot of ground in the U.S. as consumers find that they can watch all their favorite shows online at a much lower price or for nothing at all.

    In fact, a study out earlier this year from business advisory firm Deloitte found that as many as one-fifth of cable subscribers could drop their services this year. In addition, 9 percent of consumers have already made the move to abandon cable.

    According to Ronen, the cable companies’ quarterly reports showcase the trend and this move is their reaction to it. He does, however, credit the recent rise in lobbying efforts to Boxee’s launch of its Live TV dongle. He said the cable companies saw the press about it and that users were excited.

    “They don’t like the idea of competition. Those are organizations that have been a monopoly for many years,” he pointed out. “They didn’t like the idea of competition from satellite providers, they didn’t like IPTV competition, and now they don’t like competition from the Internet.”

    “Whatever they can do to block it or delay it, they’ll do.”

    The National Cable & Telecommunications Association (NCTA) recently filed a response to Boxee’s filing with the FCC saying that Boxee was “simply wrong” in its assumptions. One particular point it brought up was that Boxee subscribers could still access basic cable if the company included a CableCard slot in its device. In the filing, Neal M. Goldberg, the Vice President and General Counsel for NCTA, wrote:

    “Contrary to Boxee’s claims, the proposed rule change will result in substantial consumer benefits for tens of millions of cable customers… Boxee’s proposal is that the Commission delay or deny these consumer benefits to protect Boxee’s particular design for its product, which Boxee has deliberately chosen to build without a CableCARD slot (and without standard interfaces for connecting to a set-top box)… As Boxee well knows, its customers would be able to access encrypted cable channels if it included a CableCARD slot in its device. The whole point behind CableCARD is that consumer electronics manufacturers can build to a common technology that is supported across cable systems. Requiring operators to support one-off fixes for individual manufacturers like Boxee is completely contrary to the Commission’s basic objective in this area.”

    When asked about this, Ronen told us that a CableCard was a “bad idea” for consumers for a few reasons. First of all, Boxee Live TV would cost 2-3 times more than what it does now. Secondly, users would need to order one from their cable company, which would be another monthly rental charge they would have to pay. Thirdly, Ronen said the NCTA’s defense “doesn’t make any sense” since cable companies have stated that they are heading toward IP solutions and that the idea of a CableCard is not a long-term option.

    Ronen also found fault in another benefit that the NCTA wrote in its filing. As he explained, the NCTA asked the FCC to make the change since it would be good for the environment. The claim was that it would eliminate service calls. Ronen, however, pointed out that users would still need to get the set-top boxes. In other words, either the cable company would be delivering them or users would be picking them up, which would be no lesser impact on the environment.

    Ronen told us a better alternative for cable companies would be to support broadcast channels over pure IP. He said this would “address their issues and enable much more competition than there is today.”

    Many consumer electronics companies are in favor of a proposed FCC standard called AllVid that would allow users to access cable and satellite programming through an IP-based system. Although Boxee is not part of the AllVid alliance at this point, Ronen thinks it, or something similar, would be an effective option for the future.

    Regardless of what happens with the cable encryption proposal, Ronen is confident that the trend to view content online will only increase with time.

    “The transition toward more video over the top that’s coming over the Internet such as Netflix and Hulu and iTunes is inevitable,” he said. “If they’ll be successful in getting the FCC to adopt this rulemaking, it’s probably going to slow down the transition, but it’s not going to prevent it – it’s inevitable.”

    How will this fight play out? Will cable companies win, or will companies like Boxee get their message across? What will the impact of either outcome be on the future of pay TV? We’d love to your input in the comments.

  • Interview: FCC Lifeline Program – Will the Revamp Solve the Fraud?

    Interview: FCC Lifeline Program – Will the Revamp Solve the Fraud?

    On January 31, the FCC announced a complete overhaul of its Lifeline program. The program has been around for 25 years and is part of the Universal Service Fund. Its purpose was to help low-income families and those that live in rural areas have access to telephone service.

    It began with providing landline telephones but then added cell phones in more recent years. The funding for it comes from a “tax” that’s included in everyone’s monthly phone bill.

    (image) Through the program’s rapid growth over the years, an overhaul was greatly needed, as Larry Downes, a Senior Adjunct Fellow at TechFreedom tells us.

    “There’s general consensus among everyone, including all the commissioners at the FCC, that the Lifeline program has gotten very much out of control and very much sort of veered away from its intended goal,” he said.

    He explained to us that the problems started because there was no cap included. As a result, everyone that was eligible applied, which meant that funds quickly ran out. To fix this, the FCC would simply raise the “tax” on ordinary users.

    “The more people who apply, the more money that everyone else winds up paying on their phone bill every month to subsidize the plan,” said Downes.

    An even greater problem, however, is the fact that the FCC didn’t have any checks and balances in place to monitor fraud or abuse. What this means is many people were getting multiple lifeline subsidies for both landline phones and wireless devices.

    Downes explains that an entire industry was essentially built inside the program, in which groups of people would have the single job of signing up users. Since they didn’t have any equipment and had roaming arrangements with carriers, they were able to make a small profit.

    “Some of the unscrupulous providers of the service were just signing up people multiple times or they were signing them up in multiple different programs and clearly violating the rules and, indeed, violating the law,” he said.

    Downes believes that the FCC is rightly to blame for a lot of this fraud and abuse.

    “It has never been particularly professional in the way it goes about its administration of this and other funds, including… [the] Internet fund for libraries called E-Rate fund as well as other universal service programs,” he points out.

    In fact, an ongoing Department of Justice investigation into the E-Rate program recently sentenced 2 people to prison. Up to this point, the investigation has led to 7 companies and 24 people either pleading guilty, being convicted, or entering into civil settlements.

    FCC Chairman Julius Genachowski released this statement on the news:

    “The E-Rate program brings enormous benefits to students everywhere. I applaud today’s action by DOJ. This successful prosecution reflects the collaborative efforts of the DOJ and FCC to protect E-rate from waste, fraud, and abuse, and to deter future misconduct.”

    “It’s pretty much, I think, inexcusable that the FCC just failed completely to introduce the kind of basic oversights – the kind of basic management techniques – to make sure that this kind of waste and fraud wasn’t escalating as it clearly was,” said Downes.

    With the reform, the FCC now says it is putting in controls and expects to save an estimated $3 billion. With this money, it plans to begin a pilot program that would also grant high-speed Internet access to eligible participants.

    Downes has a problem with this because he doesn’t think the Commission has the legal authority to implement such a program without Congressional consent. According to him, the FCC repeatedly uses Section 706 of the Telecommunications Act of 1996 to expand its authority even when it isn’t relevant.

    While this is definitely a concern, he thinks an even greater issue is the fact that the agency is starting the broadband program now before it has had a chance to implement its checks and balances.

    “If it turns out that they don’t actually save $3 billion over the next two years, they’re gonna have spent some of that money anyway on this pilot program,” said Downes.

    He went on to say that a better plan would be to implement the audits and check them in six months. If they were working, then they would know the broadband plan was executable.

    The FCC released its order late last week, which means that groups are likely reviewing it to see if they need to take legal action to get it reversed.

    Do you think the FCC’s Lifeline program overhaul will solve the issues of fraud? Let us know in the comments.

  • Map Shows Areas That Lack 3G (Or Better)

    Map Shows Areas That Lack 3G (Or Better)

    Check out this map. It shows areas that lack 3G (or better) access. Data comes from the FCC.

    The map’s description says:

    This map made with data current as of January 2012. This map shows the areas identified as potentially eligible for Mobility Fund Phase 1 support. These areas are US Census blocks that lack 3G or better mobile coverage at the centroid of the block according to January 2012 American Roamer data and contain road miles in any of nine road categories. Counties that contain any of these blocks are shaded light gray, and as you zoom in and mouse over these counties you will see more information on the potentially eligible blocks, including population, road miles (S1100, S1200, and S1400 categories only), and the name and number of the CMA in which the blocks are located. Further zooming in allows you to see the US Census tracts that contain these blocks.

    Hat tip to Discovery News.

    More on Mobility Fund Phase I

  • Interview: Here’s Why Open Auctions for 2G Spectrum Are the Best Option

    Interview: Here’s Why Open Auctions for 2G Spectrum Are the Best Option

    The war in Washington over wireless spectrum is really beginning to heat up as policymakers and the FCC aren’t seeing eye to eye. The issue is commonly referred to as the “spectrum crunch” since wireless networks are quickly becoming overloaded.

    The CTIA found that the number of wireless subscriber connections has surpassed the number of people in the U.S. and its territories. It also found a 111 percent increase in wireless data traffic.

    While the situation is by all means challenging, the massive eruption of content that sparked it is both encouraging and exciting.

    (image) “We’re in this exciting arms race where the creation of content is happening so fast it’s exceeding even these amazing improvements in computing power, these amazing improvements in storage capacity, and particularly, these amazing improvements in connectivity,” said Bruce Mehlman, the former Assistant Secretary of Commerce for Tech Policy and the Co-Chair of the Internet Innovation Alliance.

    To help solve this problem of congestion, Congress is currently examining legislation that would free up more spectrum from broadcast radio and television companies. While everyone agrees that more spectrum is needed, the dispute is over how it would be distributed and, specifically, the FCC’s role in this process.

    In the past, the FCC has had a very active position in managing the auctions. In other words, it has had the power to place restrictions on auctions or conditions on spectrum based on the bidders’ market dominance and spectrum holdings.

    However, the bill that’s currently in the House would remove this power from the FCC, which is a move that is sparking a lot of debate. Former FCC Chairman Reed Hundt recently called the proposed bill “the single worst telecom bill” he’d ever seen.

    The House argues that previous government allocations are the reason that the current “spectrum crunch” is happening. It also believes that limitations in auctions would result in less revenue to help reduce the federal deficit.

    As Mehlman explained to us, Congress is remembering what happened in the controversial 2008 spectrum auctions as well as the recent failed merger of AT&T and T-Mobile. He sides with policymakers on this issue because he believes the previous restrictions are to blame for the current problems.

    In a post on the Internet Innovation Alliance, Mehlman wrote:

    Many in Congress fear FCC micromanagement and seek open auction rules free from FCC interference. The FCC, of course, objects to Congressional micromanagement of their micromanagement, seeking maximum flexibility to set auction rules.

    The irony here is that these auctions are needed because the last time this spectrum was assigned, policy makers limited its potential use and transfer. Thus much of the spectrum is under-utilized and our economy suffers for it.

    In our recent interview, he expressed concern that the same issues would continue if the FCC were permitted to keep its authority.

    “The biggest challenge is if the FCC gets its way and follows through with what many in the House fear they might do, which is limit who’s allowed to compete, I think the very spectrum crunch these very auctions are expected to alleviate doesn’t get alleviated… then problems continue,” pointed out Mehlman.

    “I think most people would concede the reason there’s inefficient use of spectrum is because of old government decisions on who could and could not use spectrum,” he continued. “Logically, you want less government constraints in the future.”

    Some mobile companies are perfectly happy with the FCC’s authority over the auctions as a group of them led by Sprint and T-Mobile sent a letter to lawmakers asking that the Commission’s position remain the same. AT&T and Verizon are not part of this support since they believe the FCC would favor the smaller carriers.

    (image) Incidentally, not everyone agrees that auctions would solve the issue. Rick Whitt, Google’s Washington Managing Counsel, recently indicated that auctions would not completely eliminate the spectrum crunch saying, “Auctions will fall short of meeting that gap.”

    Mehlman told us that he agrees with Whitt in that content will likely be created faster than bandwidth can be apportioned. But, he believes that this provides an even greater urgency to get policy in place that would encourage an open marketplace.

    “Having everybody eligible to acquire the spectrum and to subsequently sell the spectrum to a higher and better user is letting the market allocate the spectrum,” he said. “If we had done that the first time, we would have less congestion, we’d have more high speed wireless, and, I think, we’d have the same amount of competition.”

    “We don’t have a problem with lack of competition, we have a problem with a lack of investment, [and] we have a problem with a lack of spectrum aggregation to meet the marketplace needs,” he added.

    (image) Even though Sinclair Broadcast Group CEO David Smith said it was doubtful that Republicans and Democrats would be able to agree on legislation for a broadcast television auction this year, Mehlman thinks it is a possibility. As he explained, this legislation is part of larger jobs bill that both sides want to see pass.

    Should auctions be open, or should the FCC have a say? What do you think? We’d love to hear your thoughts.

  • FCC Proposes New Rule That Could Hurt Boxee Sales

    FCC Proposes New Rule That Could Hurt Boxee Sales

    The FCC is proposing a rule change that could alter how Americans watch television forever.

    That might be pushing it a little too much, but the FCC is proposing a change to a provision in the Cable Television Protection and Competition Act that requires cable companies to to provide unencrypted basic tier cable.

    The rule change, obviously supported by cable companies, would enable the encryption of basic tier cable. This means that people who jack in and get free cable from local providers would be required to get a set-top box.

    The rule change could make it so that people who previously relied upon free cable would be hit with service charges and the need to buy a set-top box. Public Knowledge has petitioned the FCC to at least allow a “transition period” and require cable companies to give low-income families free set-top boxes to ease them in to the new regulation.

    That’s not the main issue though – Boxee would be hit hardest with this new rule. They recently offered a Live TV stick for their set-top box that allows users to jack into local stations. The company said that 40 percent of their users use the Live TV stick to stream local content. That alone makes Boxee the most compelling device for people who want to cut their cable. Seeing that makes it obvious why cable companies would support this new rule.

    Boxee put together a presentation to the FCC that argues against the proposed rule as it would hurt them and any other startup wanting to innovate in the field of television. Their main argument is that encryption would harm competition and require everybody to subscribe to cable companies for even basic tier cable.

    Boxee also brings up the good point that encryption would render TV tuners useless, which are used by many PCs and HDTVs to stream over-the-air unencrypted local cable.

    It’s strange to see the FCC even contemplating a rule like this as they are one of the few government agencies that seems like they’re on the side of the consumer since they were the group who proposed net neutrality rules.

    They could make a decision on the new rule within the next few weeks. Boxee encourages their users to contact the FCC on their behalf to stop this proposed law from taking effect.

  • M.I.A.’s Middle Finger Gets The Lame NBC Apology You Expected

    M.I.A.’s Middle Finger Gets The Lame NBC Apology You Expected

    This morning, parents everywhere are being forced to have tough conversations with their children after they were exposed to something so incredibly lewd during last night’s Super Bowl Halftime show that it’s downright un-American. If you watched the big game, you probably already know that I’m talking about our national nightmare – witnessing M.I.A. flip everyone the bird on (semi) live television.

    NBC’s attempt to protect us from this horrible gesture failed, as their censoring system kicked in too late. Super Bowl viewers were treated to a blurred out screen a couple seconds following the middle finger incident. M.I.A. also appeared to say “sh*t,” but it was barely audible and overshadowed by the gesture.

    NBC was quick to release a statement on the incident, calling it a “spontaneous gesture” similar to Janet Jackson’s famous wardrobe malfunction a few years back. “We apologize for the inappropriate gesture that aired during half-time. It was a spontaneous gesture that our delay system caught late,” they said.

    The NFL’s statement was a bit sharper and put the blame on NBC’s broadcasting failures.

    There was a failure in NBC’s delay system. The obscene gesture in the performance was completely inappropriate, very disappointing, and we apologize to our fans.

    Continuing the mini war-of-words, NBC amended their statement to say that the NFL “hired the talent and produced the halftime show.”

    It’s comforting to see that both the NBC and the NFL seem to be containing the outrage.

    M.I.A.’s “flip-slip” is nowhere near as shocking as Janet Jackson’s nip-slip, but it definitely appears to be overshadowing Madonna’s performance. And M.I.A. has definitely succeeded in spurring on the country’s fake outrage machine.

    If you’re shocked by a split-second middle finger then you obviously haven’t been paying attention to Bill Belichick’s wardrobe. Talk about offensive. And aren’t we missing a bigger point here? That trying to shock the world during the Super Bowl Halftime show after the legendary wardrobe malfunction is like trying to shock a SNL audience after Sinead O’Connor ripped up the picture of the Pope. You’re going to have to doing something more than flip the bird to really shake things up.

    Failure of the night: M.I.A.’s attempt at being “edgy” while dressed as a cheerleader performing w/ Madonna & LMFAO on TV at the Superbowl 8 hours ago via web ·  Reply ·  Retweet ·  Favorite · powered by @socialditto

  • FCC Providing Broadband To Poor Families Through Lifeline

    FCC Providing Broadband To Poor Families Through Lifeline

    The FCC is reforming and modernizing their Lifeline program that provides telephone service to poor families across the nation.

    On their Web site today, the FCC detailed the planned changes to the Lifeline program. For those unaware, the Lifeline program “fulfills Congress’ mandate to ensure the availability of communications to all Americans.” The program prides itself on providing millions of low-income Americans basic phone service.

    While the program has raised the rate of households with phone service from 80 percent in 1985 to 92 percent last year, there’s still more to be done according to the FCC. They say that the program contains rules that have “failed to keep pace as consumers increasingly choose wireless phone service.”

    The FCC plans to save $200 million in 2012 and force themselves to adopt a budget for 2013 after reviewing a six-month report. They are to create a National Lifeline Accountability Database to “prevent multiple carriers from receiving support for the same subscriber.” There is also the creation of an eligibility database to cut down on fraud. The group is lastly establishing a one-per-household rule that would define a household as an “economic unit” so that multiple low-income families living at the same address can get connected.

    The FCC will be phasing out support for services like Toll Limitation – “subsidies to carriers for blocking or restricting long-distance service” and ending Link Up – “subsidies to carriers for initial connection charges.” They do, however, say that Link Up will continue in tribal lands.

    The more interesting part is that the FCC will be modernizing Lifeline to include money that will help low-income families afford broadband Internet.

    They will establish the “Broadband Adoption Pilot Program” using $25 million in savings from other reforms. They will start soliciting applications from broadband providers this year and will select a number of projects to fund. They want to clarify that this is not a free meal. Lifeline will help reduce the monthly cost of broadband, but applicants will have to pony up for the cost of the devices and become digitally literate.

    They also propose digital literacy training at libraries and schools. This will build on FCC efforts to “close the broadband adoption gap and address digital literacy.”

    Lastly, they want to provide Lifeline support for “bundled services plans combining voice and broadband or packages including optional calling features.”

    It’s about time that the FCC brings the Internet to low-income households. The Internet has become so ingrained in our culture that not having it essentially puts a person out of the job market and reduces access to information and education.

    Is this playing into the idea of the Internet as a basic human right? Or is the FCC just, as they say, modernizing their program? Let us know in the comments.

  • Verizon Scraps Convenience Fee

    Verizon Scraps Convenience Fee

    Verizon has just announced that they are scrapping plans for a $2 convenience fee that would apply to customers paying their bill online or over the phone. Just moments ago the company issued the following statement:

    Verizon Wireless has decided it will not institute the fee for online or telephone single payments that was announced earlier this week.

    The company made the decision in response to customer feedback about the plan, which was designed to improve the efficiency of those transactions. The company continues to encourage customers to take advantage of the numerous simple and convenient payment methods it provides.

    “At Verizon, we take great care to listen to our customers. Based ont heir input, we believe the best path forward is to encourage customers to take advantage of the best and most efficient options, eliminating the need to institute the fee at this time,” said Dan Mead, president and chief executive officer of Verizon Wireless.

    News of the fee broke yesterday and caused a storm of controversy. Then, just this afternoon the FCC announced that they had taken notice of the situation and would be investigating. While Verizon’s statement does not, of course, mention the FCC, you can bet that the possibility of a government investigation is a big part of why Verizon backed down.

  • FCC Looking Into Verizon Convenience Fee

    FCC Looking Into Verizon Convenience Fee

    Verizon found itself the center of a whole lot of negative attention yesterday after details were leaked concerning the company’s plan to start charging customers a $2 “convenience fee” for paying their bill online or over the phone. Though there are a number of ways around the fee, which goes into effect on January 15th, the report – which was later confirmed by Verizon – had many people up in arms.

    Well, now it looks as though not all of the negative attention is coming from customers. The New York Times is reporting that the FCC has taken notice of the planned fee, and is going to investigate. The FCC expressed their concern over the matter, and said that they intended to look into the matter.

    Yesterday I speculated that negative PR might not be enough to dissuade Verizon from going ahead and instituting this “convenience fee,” since they stand to make a considerable sum of money from it. This, however, is a different matter. We will just have to wait and see whether the FCC’s attention will succeed where public opinion might well have failed.

  • The AT&T/T-Mobile Merger Fail: The Next Day

    The AT&T/T-Mobile Merger Fail: The Next Day

    Now that AT&T has begun its walk of shame after failing to add T-Mobile as the latest notch in its belt, today is for people to reflect on what could have been and speculate on what will be.

    Henry Blodget, Editor-in-Chief of Business Insider and Glenn Beck fan, has called the U.S. government’s denial of the merger “absurd” and doesn’t really see what the big deal would have been to have three major carriers instead of four.

    So why was it even a big deal?

    If you recall, nobody was really digging on the prospect of the AT&T/T-Mobile merger. The DoJ wasn’t down, the FCC wasn’t down, and other wireless carriers weren’t down. Add to that brigade the fact that, of the four major cellular providers in the U.S., AT&T customers are the least happy about their service and you’ve got a whole lotta people very unexcited about this acquisition.

    One of the factors the FCC cited in its opposition to the creation of a AT&T-Mobile hydra was that such a merger would result in “the top two wireless providers having a market share of approximately 75 percent.” That sounds like a lot, but honestly, it wouldn’t have changed much from how the landscape currently is. As of the third quarter of 2011, AT&T and Verizon share 66% of the total carrier subscription shares (this is according to Chetan Sharma Consulting). Had AT&T swallowed T-Mobile’s share, the result would have left AT&T with approximately 42% and Verizon with 34%, topping out at around 76% of the total market. AT&T would’ve been the largest wireless provider in the United States by quite a bit, leaving Verizon at the number two spot and Sprint in a distant third (they have 17% of the market). Again, not a huge shift, but a shift nonetheless.

    What’s interesting here is that Sprint had actually expressed interest in merging with T-Mobile before AT&T cut in. A Sprint/T-Mobile deal would’ve created a third carrier that staked 27% of the wireless. While that’s still far behind the take of Verizon and AT&T mobile, it’s still a much more evenly portioned pie than the one that an AT&T-Mobile merger would’ve served up. That’s not exactly optimal either because that still leaves the top two wireless businesses in control of most of the market, but at least Spring could remain competitive in that landscape.

    In the former scenario that leaves almost 3/4 of U.S. consumers under the umbrellas of AT&T and Verizon, we basically get a two-party system of wireless providers. Having said that, I’m not even going to get into the vexations and limitations that result from a two-party system and what toll that model takes on the fluidity and progress of society in the United States.

    The FCC report also didn’t find any reliability in AT&T’s claims that “merging with T-Mobile is essential for AT&T to built out its LTE network to 97 percent of Americans” and that AT&T’s “assertions that the transaction would create jobs in the United States to be inconsistent with AT&T’s internal analyses and record statements concerning cost reductions from the merger.” Basically, no better cell phone service and not good for jobs. What’s the point, in other words?

    The one question that AT&T failed to answer sufficiently is The Why. Why did they want to acquire T-Mobile so badly? According to Chetan Sherma, they say that AT&T has 43% of the connected device share of the market. That’s a pretty hefty bite but maybe AT&T’s eyes were bigger than its stomach. Or it bit off more than it could chew. Or whatever gastrointestinal metaphor you want to apply.

    Honestly, I don’t think AT&T make a good case to the DoJ and FCC. Buying out a major competitor is a lot different than the deliberation involved in buying the Lord of the Rings BluRay box set during an unexpected late night trip to Walmart. This merger had big ramifications that AT&T didn’t address clearly enough. As a result, they lost millions of dollars and they don’t get their T-Mobile in the end. It doesn’t have anything to do with consolidating U.S. business onto U.S. soil. And nobody forced AT&T to pursue this merger. It’s a simple case of AT&T handling this acquisition poorly. Analogously, I doubt I’d be approved for a loan of $2,000,000 if I strolled into the bank, asked for the loan and when the bank asked me why I wanted to do it I simply shrugged gormlessly and droned, “B’cuz.” No, I’d be denied, because I’d need a pretty air-tight argument to get approved. But that’s what I gather AT&T’s merger playbook looked like. Since Blodget doesn’t think AT&T needs to make a solid case for the acquisition, maybe I should just ask Blodget for my loan of $2 million since he’s so relaxed.

    In the editorial I linked above to Blodget’s piece in Business Insider, he can quote stats just as well I can here but in the end it doesn’t really change anything. None of this matters. Nothing is preventing AT&T from making a second attempt at acquiring T-Mobile because, like I said, I don’t really see it drastically changing the wireless landscape. And truthfully, they’ll probably find a way to win in the end anyways so, again, this defeat to AT&T doesn’t matter. They’re just butt-hurt right now and, well, that’s to be expected.

    Don’t be surprised if they go home for the holidays, polish up their act, and then make another run at T-Mobile next year. Chances are this defeat has showed them that you can’t be a lazy suitor when you’re gunning for a major conquest.

  • AT&T/T-Mobile Deal: DEAD

    AT&T/T-Mobile Deal: DEAD

    As if its DOA status wasn’t already apparent to anybody who’s paid attention to the issue in the past month or so, the prospective merger between AT&T and T-Mobile has gone the way of the dinosaur.

    AT&T toe-tagged the deal earlier today with a press release, which was posted on their website, that said they have agreed with Deutsche Telekom AG, T-Mobile’s parent company, to end the bid for acquisition. Typical of all sore losers, AT&T did not shy from indicating who it believed were the villains that prevented them from prevailing in this corporate drama:

    The actions by the Federal Communications Commission and the Department of Justice to block this transaction do not change the realities of the U.S. wireless industry. It is one of the most fiercely competitive industries in the world, with a mounting need for more spectrum that has not diminished and must be addressed immediately. The AT&T and T-Mobile USA combination would have offered an interim solution to this spectrum shortage. In the absence of such steps, customers will be harmed and needed investment will be stifled.

    According to All Things D, AT&T will “have to pay a giant breakup fee to Deutsche Telekom” on top of eating the cost of all the legal costs the company has already put forth during its efforts to acquire T-Mobile. The Wall Street Journal adds that AT&T “will record a $4 billion pretax accounting charge in the fourth quarter, to reflect the value of the breakup fee it owes to Deutsche Telekom” but that it will work with Deutsche Telekom to develop a “mutually beneficial” roaming agreement.

  • DoJ Pushes To Delay Or Dismiss AT&T, T-Mobile Trial

    DoJ Pushes To Delay Or Dismiss AT&T, T-Mobile Trial

    Let’s play a game: Pretend you’re AT&T. Your subscribers think you’re the pits and everybody’s making it next-to-impossible for you to acquire your competitor, T-Mobile. In short, it doesn’t seem like anybody really likes you these days. What can you do? At best, just cross your fingers and hope it doesn’t get any worse from here.

    But then reality settles back into its worn recliner, kicks up its feet and tells you, “Not so fast, AT&T. I’m not done with you yet.”

    That’s essentially what happened today as the U.S. Department of Justice has asked to delay or dismiss its lawsuit against AT&T, which was originally scheduled to begin in February. The DoJ cites AT&T’s decision last month to withdraw its application from the FCC as the reason for filing the request to postpone the trial. Joseph Wayland, the lead litigator for the Justice Department’s case, said that there was no longer any reason for the DoJ to pursue the case after AT&T withdrew its application because the merger isn’t a “real transaction until they file with the FCC.”

    So really, the DoJ is treating the AT&T/T-Mobile merger as a make-believe merger.

    Trying to sustain the appearance that AT&T is still seriously pursuing the merger, Mark Hensen, an attorney for AT&T, reassured the trial judge that the deal to acquire T-Mobile was still the same in spite of reports that his client could renegotiate the acquisition to make it more agreeable to regulators.

    Really, what cards could AT&T possibly have up their sleeve at this point. Going the Defiant Teenager route didn’t really do them any good, so now will they simply accept the fact that this deal is pushing daisies? Or maybe AT&T is holding out for the miracle of Christmas where, in addition to being allowed to gobble up T-Mobile, the lame will walk and the blind will see again.

  • AT&T: FCC Report “Lacks All Credibility”

    AT&T: FCC Report “Lacks All Credibility”

    Although the AT&T / T-Mobile merger seems to be on life support, you’ve got to admire AT&T for their latest statement, one which proves that if they go down, they want to go down swinging.

    AT&T has hit back at the FCC, who earlier this week issued a report condemning the merger as bad for the country. Some of the FCC’s main points revolved around long-standing objections to the deal, for instance – the merger would actually kill jobs instead of growing them like AT&T has promised, that it’s possible for AT&T to build its own 4G LTE network without T-Mobile (market competition would spur that on), and that the merger would simply make AT&T into too much of a giant.

    In a statement credited to AT&T Senior VP of External Affairs Jim Cicconi, the company lashes out in what reads like a giant “f*ck you” to the FCC’s notions of fair analysis.

    We expected that the AT&T-T-Mobile transaction would receive careful, considered, and fair analysis. Unfortunately, the preliminary FCC Staff Analysis offers none of that. The document is so obviously one-sided that any fair-minded person reading it is left with the clear impression that it is an advocacy piece, and not a considered analysis. In our view, the report raises questions as to whether its authors were predisposed

    Cicconi goes on to talk about the FCC’s assertion that the merger would be a job-killer:

    Because the report effectively concludes that the billions of additional investment promised by AT&T to deploy 4G LTE mobile broadband service to 55 million more Americans over the next six years will occur anyway, it concludes those billions will create no new jobs and spur no new investment by others. Yet, just two weeks ago the FCC announced that its new $4.5 billion broadband fund, which will help to deploy wireline broadband to a much smaller number of Americans-7 million- over the same time period, will create “approximately 500,000 jobs and $50 billion in economic growth over this period.” This notion — that government spending on broadband deployment creates jobs and economic growth, but private investment does not–makes no sense.

    In terms of the FCC’s assertion that the merger would damage competition, AT&T calls out FCC for failing to stay consistent in regards to its own statements:

    The FCC’s Mobile Competition Report this year concluded that 90% of all Americans have a choice of five or more facilities-based wireless carriers, not including competition from resale providers. Yet the draft report on our merger dismisses the significance of the FCC’s own official finding in assessing the competitive impact of our merger.

    They conclude with a request for people to read the FCC and they will see how unbalanced it really is:

    We have summarized here only a portion of the infirmities we see in the FCC’s report. We would encourage all observers to read the report itself. We believe that the utter absence of balance is clear, and demonstrates that the document lacks all credibility. The decision to issue such a report that has no legal status, without a vote of the Commission, and in a proceeding that has been withdrawn, was also without precedent, and underscores that this was intended more for advocacy and to impact public perceptions. And neither is a proper basis for action by a regulatory agency.

    Will any of this change anyone’s mind? That remains to be seen. But this statement clearly demonstrates that AT&T isn’t afraid to fight for this deal.

    What do you think about the merger? Let us know in the comments.

  • AT&T/T-Mobile Merger Faces FCC Obstacle

    AT&T/T-Mobile Merger Faces FCC Obstacle

    As if AT&T didn’t have enough trouble performing their sleight of hand for the Department of Justice, their attempt to acquire T-Mobile just got more difficult, this time in the form of the FCC. In a weighty statement issued yesterday, the FCC produced a damning analysis of the merger citing concerns over possible “anticompetitive effects” should AT&T’s acquisition succeed. In defending the need of a competitive market, the FCC cited T-Mobile’s role as a “pricing innovator” due to the several service offers to consumers that may not necessarily be available through other wireless providers, such as the Flex Pay plan and Month-to-Month Postpaid Plans.

    The full text follows:

    Fcc Att Short

    The FCC continues:

    The record overall does not support a finding that the proposed AT&T/T-Mobile merger would serve the public interest, convenience, and necessity and that the record presents a number of substantial and material questions of fact.

    Should the AT&T-Mobile amalgamation come to fruition, in one swoop AT&T would eclipse Verizon to become the largest wireless provider as well as dwarf Sprint’s number of subscribers by two-and-and-half times. Additionally, the merger would eliminate T-Mobile and leave Verizon and AT&T in control of approximately 75% of all market shares. And that, cellphone users and poli-sci students, would most likely undermine the purpose of the Communications Act.

    But the FCC isn’t quite done with AT&T yet:

    The staff additionally identifies internal AT&T documents and consistent historical practices that contradict AT&T’s claim that the merging with T-Mobile is essential for AT&T to build out its LTE network to 97 percent of Americans. The staff finds the Applicants’ assertions that the transaction would create jobs i the United States to be inconsistent with AT&T’s internal analyses and record statements concerning cost reductions from the merger.

    Ouch. Hearing that your merger is not going to create jobs when the country (and pretty much the whole world) is already feeling severe economic pangs is really not the way to garner support for the proposed merger.

    AT&T appeared indignant of the FCC in their statement released on Thanksgiving Day, so one must wonder if this latest development has changed their tune. Regardless, AT&T’s space in which to maneuver this deal seems to become more restricted by the day. One question still remains: Is this T-Mobile deal really worth that much to AT&T to be #1?

  • Tablet Problems, Analytics & The Kardashian Wedding

    Tablet Problems, Analytics & The Kardashian Wedding

    I have to say, it’s been a bit of a slow day for infograhpics, but we were able to dig up a few interesting ones, including one from the FCC, one about analytics (a hot topic given recent Google announcements) and one about the Kardashian wedding (yeah, why not?).

    View more daily infographic round-ups here.

    The FCC looks at the impact of tablets on Spectrum:

    FCC Tablet impact on spectrum  

    Kissmetrics provides a 2011 web analytics review:

    ++ Click Image to Enlarge ++
    The 2011 Web Analytics Review
    Source: The 2011 Google Web Analytics Review Infographic

    Brilliance looks at the Kardashian wedding from August vs. the average wedding:


    Brilliance Loose Diamonds