Jon Brodkin

AT&T and Verizon try to fend off net neutrality case before Trump takes over

AT&T and Verizon on Dec 16 urged the Federal Communications Commission to drop a network neutrality investigation into the companies' practice of exempting their own video from mobile data caps while charging competitors for the same exemptions. The wireless carriers have a good chance of avoiding any punishment because the FCC next month will switch to Republican control under President-elect Donald Trump, an opponent of net neutrality rules. For now, the companies are cooperating in the case, with each carrier sending replies to the FCC by the commission's deadline. AT&T lets its subsidiary DirecTV stream video without counting against AT&T mobile customers' data caps, while Verizon's Go90 video service doesn't count against data caps on the Verizon Wireless network. Other video providers must pay AT&T or Verizon to get the same data cap exemptions, also known as "zero-rating."

Chairman Wheeler says being a lobbyist was easy—being FCC chairman was hard

Tom Wheeler was sworn in to the Federal Communications Commission in November 2013, and he knew the industry well because he was a former lobbyist. From 1979 to 1984, he led the cable industry's top lobby group, and from 1992 to 2004 he was the chief lobbyist for the mobile phone industry. Looking back, Chairman Wheeler says it was easier being a lobbyist. "To make decisions that are in the common good is tough," Chairman Wheeler said. "Remember: I have been on the other side. Making demands that benefit a specific constituency is easy, as is attacking the decision-makers when you don't like that decision."

Chairman Wheeler said his greatest lesson from being chairman "is how malleable the definition of the public interest becomes when it comes to protecting self-interest. Good people would come into the office and explain that what benefited them was in the public interest, and those of an opposing view would argue that the public interest was only as they defined it." Chairman Wheeler said he concluded that "I needed to define the public interest as the common good. At a time when everyone is wrapping their self-interest in their definition of public interest, the question has to be what is the best way to serve the common interests of the most [people]."

Nashville fights Comcast lawsuit over rules that help Google Fiber

The Nashville (TN) metro government wants a court to throw out a Comcast lawsuit that seeks to overturn rules designed to speed up deployment of Google Fiber. Nashville filed a motion to dismiss Comcast's lawsuit in US District Court in Tennessee on Nov 30, saying that Comcast incorrectly claimed Nashville's rules are preempted by state and federal law. The case is about Nashville's "One Touch Make Ready" ordinance that gives Internet service providers faster access to utility poles. One Touch Make Ready (also known as "Climb Once") lets new competitors move existing ISPs' wires in order to make room for new pole attachments, instead of having to wait for the incumbent ISPs to send work crews to move their own wires. The metro government passed the rules to help Google Fiber install wires faster, but both AT&T and Comcast are seeking to invalidate the ordinance.

President-elect Trump’s latest FCC advisor opposes Title II, supports data cap exemptions

President-elect Donald Trump announced a third advisor to oversee the Federal Communications Commission's transition from Democratic to Republican control. Roslyn Layton, Trump's new addition, joins Jeffrey Eisenach and Mark Jamison on the FCC transition team. All three are outspoken opponents of the FCC's Title II network neutrality rules and are affiliated with the conservative American Enterprise Institute (AEI). Layton argued on the AEI blog that government regulations aren't necessary to protect net neutrality.

"Regulation proponents argue that without such rules your Internet provider would speed up or slow down websites," she wrote. "There have never been rules against this, but Internet providers don’t do it anyway. Simply put, the business opportunity to deliver an open Internet is far greater. Failing that, antitrust laws deter discriminatory behavior, already ensuring net neutrality." Layton opposed proposed rules intended to provide alternatives to set-top boxes that must be rented from cable TV companies and customer privacy rules for Internet providers. She also supports ISPs' right to accept money in exchange for exempting some services from data caps.

When a city has gigabit Internet, prices for slower speed tiers drop

The mere presence of gigabit Internet speeds in a metro area drives down the price of plans with slower speeds, according to new industry-funded research. Thus, the data suggests that even customers who don't purchase gigabit Internet benefit from its availability. This research also found—to no one’s surprise—that having more Internet service providers in a particular region drives prices down and that the presence of fast speeds encourages other ISPs to offer higher-speed plans to match their competitors.

The study, titled “Broadband competition helps to drive lower prices and faster download speeds for US residential consumers,” analyzed DSL, cable, and fiber broadband plans from the 100 largest DMAs (designated market areas) in the US. It was written by Analysis Group, an economics consulting firm, with research funding from the Fiber to the Home Council, an industry consortium founded by fiber network equipment manufacturers.

Chairman Wheeler urges President-elect Trump to protect consumers, not corporations

As Republicans prepare to take over the Federal Communications Commission, outgoing Chairman Tom Wheeler defended his Democratic majority’s decisions and said he hopes the FCC will continue to protect consumers under President Donald Trump. Chairman Wheeler said: "Certain of my colleagues identified the items on today's proposed agenda as controversial and asked that they not be considered today. I hope that this doesn't mean that these issues won't be quickly addressed after the transfer of leadership of this agency. It is unfortunate that hospitals and small businesses in search of competitive alternatives will be denied that opportunity. They deserve better from this commission. It is truly disappointing that 1.4 million Americans living in rural areas without LTE service will continue to be so deprived. They deserve better from this commission. And it is tragic that 1.3 million Americans who are blind and millions more who are visually impaired will not be able to enjoy expanded video description. They deserve better from this commission. All of these matters are so-called 'controversial' because they are opposed principally by the largest incumbent firms in the sector. As the deferred items reflect, when so-called controversy is the result of choosing between the broader common good or those incumbents preferring the status quo, I believe the public interest should prevail."

“Taking a fast, fair and open internet away from the public would be a real mistake,” a somber and steely-eyed Chairman Wheeler told reporters after the FCC’s monthly meeting. “Taking away network privacy that consumers enjoy as a result of our decision would be a real mistake.”

FCC abides by GOP request, deletes everything from meeting agenda

The Federal Communications Commission has deleted every major item from the agenda of its Nov 2016 meeting, apparently submitting to a request from GOP leaders to halt major rulemakings until President-elect Donald Trump is inaugurated as President. Republicans from the House and Senate sent letters to FCC Chairman Tom Wheeler Nov 15 urging him to stand down in his final months as FCC Chairman. The GOP pointed out that the FCC halted major rulemakings eight years ago after the election of Barack Obama when prompted by a similar request by Democratic lawmaekrs. Chairman Wheeler's office hadn't said whether it will comply with the request, but Nov 16 it announced the deletion of all items that were originally scheduled to be presented and voted on at Nov 17's meeting.

The FCC said the items "remain on circulation," which means they can still be voted on, but a vote doesn't appear likely. Before the change, the agenda included votes on price caps for “special access” business data services; Universal Service funding to expand mobile broadband networks; wireless roaming obligations; and requirements for audio description of TV programming for blind and visually impaired people. The only item not deleted from Nov 17's meeting is part of the "consent agenda," which means it is routine and wasn't going to be presented individually.

Comcast suspends data caps—but only in Maine

Comcast has decided to stop enforcing data caps and overage fees in Maine and signaled that states in the company's northeast region will remain cap-free, at least for now. But for Comcast customers in other states, don't get your hopes up that data caps will disappear. Comcast dramatically expanded the caps on November 1 and will continue to apply the data limits and overage fees in 27 states out of the 39 states Comcast operates in. Comcast says that eliminating data caps in Maine is only about bringing the state in line with company policy elsewhere in the Northeast. A Comcast FAQ says that the data cap in Maine is being suspended effective December 1. If Comcast really wanted a consistent policy it could eliminate data caps nationwide (or enforce the caps nationwide), but Comcast's data cap policies have been anything but consistent.

Trump’s FCC: Tom Wheeler to be replaced, set-top box reform could be dead

Tom Wheeler’s time as chairman of the Federal Communications Commission is nearing an end now that Republican Donald Trump has won the presidency. You can expect Chairman Wheeler to step down from his chairmanship on or before January 20, when President-elect Trump is inaugurated. It’s customary for the chair to step down when the White House shifts to the opposing party. All five FCC commissioners are appointed by the president and confirmed by the US Senate, with the president’s party having a one-vote majority. (The president usually appoints minority party commissioners based on recommendations made by minority party lawmakers.) President-elect Trump can’t force Chairman Wheeler, a Democrat, to leave the commission entirely before his term expires, but the president can designate a new chairperson. “The president decides who is the chair, so Wheeler will certainly no longer be chair on the first day of the administration,” said Harold Feld, senior VP of advocacy group Public Knowledge.

Chairman Wheeler's FCC passed a number of controversial changes, none bigger than the reclassification of broadband providers as common carriers and imposition of net neutrality rules. If Democrat Hillary Clinton had won the election, Chairman Wheeler would still likely step down sometime in 2017, but he could push through some more rule changes without fearing that they would be quickly undone. With Republicans about to take over, any last-minute votes are in danger of being overturned. Chairman Wheeler’s attempt to save customers money by reforming the cable TV set-top box market may therefore be dead.

Court blocks FCC attempt to cap prison phone rates

Once again, a Federal Communications Commission attempt to lower the price inmates pay for phone calls has been blocked in court. A ruling from the US Court of Appeals for the District of Columbia Circuit granted a petition for a stay filed by Securus Technologies. This puts a halt to rate caps on inmate calling services that were implemented in August.

“Petitioners have satisfied the stringent requirements for a stay pending court review,” judges wrote.

The FCC has repeatedly been stymied in attempts to lower the rates inmates pay for phone calls to family, friends, and lawyers. After a March 2016 federal appeals court ruling stayed new rate caps of 11¢ to 22¢ per minute on both interstate and intrastate calls from prisons, the FCC proposed new caps of 13¢ to 31¢ per minute in an attempt to satisfy the court. Those new caps were halted in the latest ruling.

When you want cable Internet—but Charter wants $9,000 first

Before Charter purchased Time Warner Cable (TWC) in May of 2016, the company promised New York state regulators that it would bring broadband to 145,000 unserved and underserved homes and businesses by 2020. The condition helped Charter win government approval of the merger. Christian Babcock of Schuylerville (NY) is one of the state’s unserved residents, but he has no idea if his home will be included in the required buildout to 145,000 locations.

Before the merger, TWC told Babcock he’d have to pay thousands of dollars up front to subsidize construction needed to serve his home. Even now, the Charter-owned TWC is demanding more than $9,000 in exchange for service. That's the price to cover Charter's construction; Babcock would have to pay that plus the usual monthly service fees. Making the situation even more frustrating, Charter wouldn’t have to extend the TWC network very far to reach the house owned by Babcock and his wife. One nearby house has Charter service already, Babcock says. But even just getting an accurate explanation of the costs has been a hassle.

AT&T falsely claimed pro-Google Fiber rule is invalid, FCC says

The Federal Communications Commission has given a helping hand to Louisville (KY) in the city's attempt to enforce local rules that would make it easier for Google Fiber to compete against AT&T. AT&T sued the local government in Louisville and Jefferson County in February to stop a One Touch Make Ready (OTMR) ordinance designed to give Google Fiber or other new competitors faster access to utility poles.

Oct 31, the US government submitted a statement of interest on behalf of the FCC, which says that one of AT&T’s primary legal arguments is incorrect. AT&T—also known as BellSouth Telecommunications in Kentucky—argued that the Louisville ordinance is preempted by the FCC’s pole-attachment rules. The local ordinance "conflicts with the procedures created by the FCC, and upsets the careful balances struck by the FCC in crafting its pole attachment regulations," AT&T's lawsuit said. But that is false, the FCC says. The FCC does have rules ensuring reasonable access to utility poles, but states are allowed to opt out of the federal pole-attachment rules if they certify to the commission that they regulate the rates, terms, and conditions of pole attachments. Kentucky is one of 20 states that has opted out of the federal regime and imposed its own rules, the FCC noted. “Accordingly, the federal pole-attachment regulations enacted under Section 224 [of the Communications Act] simply do not apply here,” the FCC wrote. More generally, One Touch Make Ready rules are consistent with federal communications policies and regulations that seek expanded broadband deployment, the FCC also wrote.

AT&T/Time Warner seems headed for FCC review, whether AT&T likes it or not

Some news organizations have reported that Time Warner has only one Federal Communications Commission license, for a TV station in Atlanta, and that the AT&T/Time Warner merger wouldn't be reviewed by the FCC if Time Warner sells that TV station to a third party. That is not correct, however.

Time Warner programmers such as HBO, CNN, and Turner Broadcasting System also have dozens of FCC licenses that let them upload video to satellites used by pay-TV companies. These licenses are crucial for distributing video to cable TV providers. It isn't only satellite TV companies like Dish or the AT&T-owned DirecTV that use satellites to send programmers' video to consumers' homes—even cable companies like Comcast use what's called a "headend in the sky" to receive and distribute video. The FCC's list of active satellite Earth station licenses shows that CNN America has 36 such licenses covering operations at specific locations. HBO and HBO Latin America have a combined seven licenses, and Turner Broadcasting System has 14 licenses. That's 57 licenses that could trigger an FCC review. Licenses for some of the same locations were part of the FCC's review of Time Warner's merger with AOL in 2001. AT&T would love to avoid an FCC review, which in the past has killed deals such as AT&T/T-Mobile and Comcast/Time Warner Cable.

Comcast sues Nashville to halt rules that help Google Fiber

Comcast sued the Nashville (TN) metro government and mayor to stop a new ordinance designed to give Google Fiber faster access to utility poles. Comcast's complaint in US District Court in Nashville is similar to one already filed by AT&T in Sept. Both Internet service providers are trying to invalidate a One Touch Make Ready ordinance that lets new ISPs make all of the necessary wire adjustments on utility poles themselves instead of having to wait for incumbent providers like AT&T and Comcast to send work crews to move their own wires.

The ordinance was passed largely to benefit Google Fiber, which is offering service in Nashville but says that it hasn't been able to deploy faster because it is waiting to get access to thousands of poles. Nearly all the Nashville utility poles are owned either by the municipal Nashville Electric Service or AT&T. Because Comcast has wires on many of the poles, it has some control over how quickly Google Fiber can expand its network. When Google Fiber wants to attach wires to a new pole, it needs to wait for ISPs like Comcast to move their wires to make room for Google Fiber's.

AT&T/Time Warner deal could be approved without any FCC merger review

Advocacy groups are urging US regulators to consider blocking AT&T's purchase of Time Warner, but AT&T may be able to avoid any review by the Federal Communications Commission. The merger will be analyzed by the Department of Justice, but AT&T has said the FCC will be involved only if any FCC licenses are transferred to AT&T. A TV station is an example of something that requires an FCC license, but AT&T said that it and Time Warner are still "determining which FCC licenses, if any, will be transferred to AT&T in connection with the transaction."

The reason for this uncertainty is that "despite its big media footprint, Time Warner has only one FCC-regulated broadcast station, WPCH-TV in Atlanta," Reuters reported. "Time Warner could sell the license to try to avoid a formal FCC review, several analysts said." (Time Warner Inc. is completely separate from Time Warner Cable, which was sold to Charter in 2016 after an FCC review.) Transfer of a license to a third party would still require FCC review, but it would be separate from the AT&T/Time Warner transaction. Multichannel News raised the possibility that there might be other FCC licenses involved, but acknowledged that it isn't clear. "Some analysts, and one veteran communications attorney, thought there might be some satellite uplink licenses, but an FCC source said they did not know of any," the news site reported.

After setback, FCC Chairman keeps pushing set-top box and privacy rules

After a rare setback, Federal Communications Commission Chairman Tom Wheeler is still pushing for votes on plans to reform the cable TV set-top box market and impose new privacy rules on broadband providers. The FCC was scheduled to vote on the cable TV plan at its last meeting on September 29 but removed it from the agenda when the commission's Democratic majority couldn't agree on all the details. Last-minute negotiations aren't uncommon before FCC meetings, but this was a rare case of Chairman Wheeler not having enough votes to move forward with a controversial agenda item. The cable TV proposal—which would require TV providers to make video applications for third-party set-top boxes—is not on the agenda for the October FCC meeting. But it could theoretically be passed at any time, as commissioners can vote on it between meetings. It's not clear whether a vote is imminent, but Chairman Wheeler touted the plan again in an op-ed on Oct 19.

FTC says it may be unable to regulate Comcast, Google, and Verizon

The Federal Trade Commission is worried that it may no longer be able to regulate companies such as Comcast, Google, and Verizon unless a recent court ruling is overturned.

The FTC petitioned the 9th US Circuit Court of Appeals for a rehearing in a case involving AT&T’s throttling of unlimited data plans. A 9th Circuit panel previously ruled that the FTC cannot punish AT&T, and the decision raises questions about the FTC’s ability to regulate any company that operates a common carrier business such as telephone or Internet service. While the FTC's charter from Congress prohibits it from regulating common carriers, the agency has previously exercised authority to regulate these companies when they offer non-common carrier services. But the recent court ruling said that AT&T is immune from FTC oversight entirely, even when it’s not acting as a common carrier. It isn’t clear whether the ruling sets an ironclad precedent preventing the FTC from regulating any company with a common carrier business. But the FTC’s petition for a rehearing (full text) describes that outcome as a real possibility.

Hillary Clinton vs. Donald Trump on broadband: She has a plan, he doesn’t

The 2016 presidential election is likely to have a major impact on how the US government tries to expand broadband deployment and how it regulates Internet service providers. But while we have a pretty good idea of how a President Hillary Clinton would approach the broadband industry, there’s very little to go on when predicting broadband policy under a President Donald Trump.

Clinton’s technology plan includes several initiatives designed to “deliver high-speed broadband to all Americans,” and it promises to defend network neutrality rules that prevent ISPs from discriminating against online services. There are questions about how Clinton would implement the plan and whether it's aggressive enough to achieve 100 percent broadband deployment, and her campaign has declined to provide more specifics. But the mere fact that Clinton has outlined some clear broadband goals sets the Democratic nominee apart from the other candidates. Republican nominee Donald Trump doesn’t seem to have any plan for increasing access to broadband, and there are indications that he would not support new consumer protection regulations.

T-Mobile now throttling mobile hotspots when network is congested

T-Mobile USA has begun throttling mobile hotspot data when its network is congested while giving priority to smartphones and other devices that connect directly to the cellular network. T-Mobile has been notifying customers of the change with a message that says, "We just made your network better again" and that "T-Mobile device data comes first." "We've primed the network for on-device use," the carrier says on its website. "So now when there's congestion, you may notice higher speeds for data on your T-Mobile devices versus Smartphone Mobile Hotspot (tethering)."

Prioritization of on-device data is triggered "at times and at locations where there are competing customer demands for network resources, which may result in slower tethering speeds," T-Mobile also says. That means your smartphone should still be fast, but devices like laptops that connect to the phone's mobile hotspot will get slower Internet access. T-Mobile is making this change as it tries to shift customers from data buckets to plans that are nominally "unlimited" but in reality have several limits. The recently unveiled T-Mobile One plan has no monthly data cap or overage fees, but it throttles video to 1.5Mbps (enough for about 480p resolution) and throttles other data usage when customers who have used more than 26GB in a month connect to congested cell towers.

Verizon workers can now be fired if they fix copper phone lines

Verizon has told its field technicians in Pennsylvania that they can be fired if they try to fix broken copper phone lines. Instead, employees must try to replace copper lines with a device that connects to Verizon Wireless’s cell phone network. This directive came in a memo from Verizon to workers on September 20. “Failure to follow this directive may result in disciplinary action up to and including dismissal,” the memo said.

It isn't clear whether this policy has been applied to Verizon workers outside of Pennsylvania. The memo and other documents were made public by the Communications Workers of America (CWA) union, which asked the Pennsylvania Public Utility Commission to put a stop to the forced copper-to-wireless conversions. The wireless home phone service, VoiceLink, is not a proper replacement for copper phone lines because it doesn’t work with security alarms, fax machines, medical devices such as pacemakers that require telephone monitoring, and other services, the union said. “Field technicians are required to have VoiceLink units on their trucks and to refuse to repair copper plant serving voice-only customers,” CWA local President James Gardler wrote in testimony presented to the state Utility Commission. "Our members are being told that if they actually try to repair copper plant instead of using VoiceLink, they will be subject to disciplinary action by Verizon." The memo to field technicians says that in order to give customers the “best possible network performance in non-FiOS areas, Verizon will migrate as many customers experiencing trouble on their line to VoiceLink as possible.”

Verizon’s fiber plan called “haphazard,” leaves many with subpar DSL in NJ

Verizon’s plan to deploy fiber to 900 homes and fix problems with its DSL network in South New Jersey is “haphazard” and fails to “address the systemic problems” faced by Verizon customers, an independent government agency said. The New Jersey Division of Rate Counsel, a watchdog agency that advocates on behalf of utility customers, wants state utility regulators to move forward with an investigation into Verizon’s plan to fix service problems. Division of Rate Counsel Director Stefanie Brand made the agency’s position clear in a letter to the New Jersey Board of Public Utilities (BPU).

The BPU has been considering whether to launch an investigation of Verizon as requested by 17 cities and towns who say the company “has, through neglect, abandoned and retired its copper landline infrastructure in most of South Jersey.” Verizon attempted to prevent a formal investigation by submitting a plan to improve service on September 19, but Rate Counsel argued that the BPU should investigate instead of simply taking Verizon’s word that it will fix the problems.

AT&T to end targeted ads program, give all users lowest available price

AT&T is getting rid of Internet Preferences, the controversial program that analyzes home Internet customers' Web browsing habits in order to serve up targeted ads.

“To simplify our offering for our customers, we plan to end the optional Internet Preferences advertising program related to our fastest Internet speed tiers," an AT&T spokesperson spoketh. "As a result, all customers on these tiers will receive the best rate we have available for their speed tier in their area. We’ll begin communicating this update to customers early next week.” Data collection and targeted ads will be shut off, AT&T also confirmed. Since AT&T introduced Internet Preferences for its GigaPower fiber Internet service in 2013, customers had to opt into the traffic scanning program in order to receive the lowest available rate. Customers who wanted more privacy had to pay another $29 a month for standalone Internet access; bundles including TV or phone service could cost more than $60 extra when customers didn't opt in.

FTC won’t give up fight against AT&T unlimited data throttling

The Federal Trade Commission will appeal a court decision that let AT&T avoid punishment for throttling the Internet connections of customers with unlimited data plans. The FTC sued AT&T in October 2014, seeking refunds for customers. But in August, a three-judge panel at the US Court of Appeals for the Ninth Circuit ruled in favor of AT&T, overturning a District Court decision that had gone in the FTC's favor. The FTC's options include seeking a rehearing of the case in front of the entire Ninth Circuit appeals court, and that is what the commission will do. "We are going to be seeking a rehearing in that matter," FTC Chairwoman Edith Ramirez told US senators during an FTC oversight hearing Sept 29. If the FTC fails at the appeals court level, it could take the matter to the US Supreme Court, but Chairwoman Ramirez did not address that possibility.

ISP explains data caps to FCC: Using the Internet is like eating Oreos

If you were worried that the debate over Internet data caps would get bogged down in technical mumbo-jumbo, fear no more—it's actually much simpler than you think. Mediacom, a US cable company with a little over 1.1 million Internet subscribers in 22 states, has put the matter to rest by explaining to the Federal Communications Commission that its customers shouldn't get unlimited data because using the Internet is just like eating Oreos. "You have to pay extra for double-stuffed," Mediacom Senior VP and General Counsel Joseph Young wrote in a filing with the FCC. Young went into more detail, just to make sure the nation's broadband regulators fully understand how Internet data is just like sandwich cookies.