March 2009

Companies want no set Internet speeds in stimulus

Telecom companies vying for $7.2 billion in broadband funds included in the economic stimulus plan urged regulators not to mandate a super-fast Internet speed as a criterion for winning the money. Critics of this approach, though, say no government standards led to the United States lagging its industrialized peers in average broadband speed, viewed as a key driver of economic development. Comptel and the Wireless Communications Association say setting speeds too high will result in the cost of providing service eating into profits. Federal Communications Commission defines broadband speed at about 768 kilobits per second, slow by most standards, most experts agree. Conventional dial-up is about 56 kilobits per second, but cable companies offer high-speed Internet at typically a minimum of 1 megabit per second, and in most cases, more than that.

Urging Broadband Stimulus Spending For the Benefit of All

Arizonans and native Americans at a public forum in Flagstaff, Ariz., urged a broadband buildout that puts connectivity of disadvantaged groups at the heart of the federal stimulus spending. The discussion was the first of three panels on Wednesday's field hearing of the Commerce Department's National Telecommunications and Information Administration and the Agriculture Department's Rural Utilities Service. On Thursday, the fourth of six days of NTIA/RUS public hearings on how to spend $7.2 billion in the federal broadband stimulus, heads back to Washington. The forums will continue in Washington on Monday and Tuesday. As with Tuesday's field hearing in Las Vegas, the digital divide between America's wealthy bicoastal techorati was contrasted with the wide open, and often offline, regions of the American west.

Panelists at Las Vegas Broadband Forum Seek Local 'Skin in the Game'

Mark Seifert, senior advisor to the Assistant Secretary of Commerce, pled with panelists in Las Vegas as he urged them to provide constructive selection criteria for the agency's evaluation of broadband grant applicants. "You tell us how we should judge all these applications," he said, nothing that was "one of the most important panels we'll have [and] the most difficult because we have so many different things that we have to try and figure and achieve." For example, he asked: "How would you in a competitive way rank proposals one over the other to decide how we should spend the money?" Two of the speakers were very concerned that large business interests might simply come to town, install some equipment, collect their pay, and move-on. Those observations caused the panel to reiterate what had been said about "local presence" in markets benefiting from grants. Seifert followed up by commenting that the 20% matching contribution is intended to ensure that awardees have some "skin in the game."

Open Government Advocates Pleased with Obama FOIA Reforms

The Justice Department has followed through on its pledge to reform the government's approach to Freedom of Information Act (FOIA) Requests, which are a tool used by journalists and the general public to get access to government information. The new guidelines, issued in memos to agency and department heads, expand on the openness principles expounded by President Barack Obama in a presidential memorandum on FOIA issued on his first day. They supercede guidelines issued under former Attorney General John Ashcroft shortly after 9/11.

Among the key points in the new guidelines are: Attorney General Eric Holder has instructed agencies not to withhold records just because it is technically defensible, but to make "discretionary disclosures" and partial releases." The Ashcroft guidelines were widely criticized by journalism organizations as being overly restrictive under the rubric of national security. There will also be a new standard for defending decisions to withhold records.

"Now, the Department will defend a denial only if the agency reasonably foresees that disclosure would harm an interest protected by one of the statutory exemptions, or disclosure is prohibited by law," said Justice in announcing the policy changes.

FCC Announces Tentative Agenda for April 8, 2009 Open Meeting

Here's what the Federal Communications Commission plans to consider on April 8th:

1) A Notice of Inquiry on developing a National Broadband Plan, as instructed by the American Recovery and Reinvestment Act of 2009.

2) A Report and Order, and 4th Further Notice of Proposed Rulemaking on Improving Data Collection on Minority and Female Broadcast Ownership.

3) A supplemental Notice of Inquiry on the FCC's Annual Assessment of the Status of Competition in the Market for Delivery of Video Programming.

4) A Notice of Proposed Rulemaking on Policies to Promote Rural Radio Service.

5) A Report and Order and Further Notice of Proposed Rulemaking addressing miscellaneous Part 90 public safety rules, including the 4.9 GHz band.

Advanced ticket purchases are not available for this event.

House Oversight of the Digital Television Transition

The House Subcommittee on Communications, Technology, and the Internet will hold a digital television oversight hearing on Thursday, March 26, 2009.

The hearing will examine the administration of the DTV Converter Box Coupon Program by the National Telecommunications and Information Administration (NTIA), outreach and consumer education efforts by the Federal Communications Commission (FCC), and the status of the transition from the perspective of other stakeholders.

Witness List:

  • Anna Gomez, Acting Secretary for Communications and Information, Department of Commerce
  • Hon. Michael J. Copps, Acting Chairman, Federal Communications Commission
  • Mark Lloyd, Vice President, Strategic Initiatives, Leadership Conference on Civil Rights
  • Peter Morrill, General Manager, Idaho Public Television
  • Robert S. Prather, Jr., President, Gray Television, Inc.
  • Gary Severson, Senior Vice President, General Manager, Entertainment, Wal-Mart Stores, US
  • Gary Shapiro, President and CEO, Consumer Electronics Association
  • Christopher Wood, Vice President, Senior Legal Counsel, DTV Compliance Officer, Univision Communications Inc.


House Oversight of the Digital Television Transition

The House Subcommittee on Communications, Technology, and the Internet will hold a digital television oversight hearing on Thursday, March 26, 2009.

New Jersey Sues Verizon Over FiOS Marketing

New Jersey's Attorney General has sued Verizon Communications, alleging the telco engaged in "deceptive and misleading" marketing, sales, billing and customer service practices related to its FiOS services. The state, through its Division of Consumer Affairs, charged that Verizon failed to provide advertised promotional gifts -- such as flat-screen HDTVs -- when consumers signed up for FiOS service. New Jersey also alleged that Verizon charged consumers higher prices for service than prices quoted in door-to-door solicitations and ads, and charged activation fees after consumers were told that such would be waived. "FiOS is touted for its clearer picture but Verizon obscured the truth from potential customers in its advertising and sales pitches," New Jersey attorney general Anne Milgram said in a statement. "Deception and misrepresentations have no place in the marketplace and we will hold businesses accountable when they violate the public's trust."

Comcast Easily Top Op In Top 40 Markets: Kagan

According to SNL Kagan, Comcast has 20.1 million customers in the top 40 US markets, almost three times the total of the second-largest cable operator, Time Warner, which counts 7.8 million. Rounding out the top sub count leaders in the top 40 markets: Cablevision (3.1 million), Charter (2.8 million), Bright House (2.2 million), "other" (2.02 million), Cox (2.00 million), Insight (201,000) and Mediacom (176,000).

Analysts: Telco video to outpace cable telephony in 2009

Telco video growth should outpace cable telephony growth this year for the first time ever, according to research analysis and investment firm Stifel Nicolaus, which predicts AT&T and Verizon will together report more video net adds in 2009 than the number of voice net adds gained collectively by their top four cable rivals.