June 2009

How Public Knowledge aims to shape telecom policy

Public Knowledge is a relative newcomer among telecom consumer groups. Founded in 2001, Public Knowledge initially focused on intellectual property issues but has since branched out into broadband. With a staff of less than 12, the organization is funded "mostly by foundations" such as the Ford Foundation and the MacArthur Foundation, said Art Brodsky, a spokesman for Public Knowledge. The organization also has some individual and corporate contributors, including Google and Verizon. Public Knowledge is probably best known for helping consumers gain the right to make copies of audio and video recordings, as well as television broadcasts. Today, as Brodsky explained, "We're active in open Internet issues and stimulus bills." The organization was instrumental in getting language included in the American Recovery and Reinvestment Act of 2009 to help ensure that carriers receiving funding would abide by the principles of net neutrality aimed at ensuring what advocates call "an open Internet." A key goal for Public Knowledge today is to see legislation passed to cement the principles of net neutrality. If passed, such legislation could require carriers to allow consumers to attach any device to their networks and could prevent them from charging customers more for differentiated classes of service. Public Knowledge also is concerned about consolidation in the telecom market, which has left consumers with fewer choices, Brodsky said. Today, he said, the only choices are the local cable or local phone company.

How Free Press aims to shape telecom policy

Launched in 2002, Free Press is devoted solely to telecom and communications issues. "The idea behind it was that on every major political issue, such as health care, education, or energy, there were large civic organizations to represent people in Washington, but there was no entity of that sort in media and telecom," said Ben Scott, policy director for Free Press. Pointing to organizations such as the Sierra Club and the National Association for the Advancement of Colored People as role models, Scott said Free Press accepts anyone who wants to join. Membership is free, although a small percentage of members do contribute financially. The organization also receives some financial support from foundations. The organization today has 500,000 members and has grown from a staff of two to more than 30. A Massachusetts office focuses on public education and town meetings and on educating members using online tools. A Washington DC office staffed by lawyers and researchers studies and monitors the regulatory process and identifies decisions it wants to be involved in shaping.

Verizon Pricing Petition Gets Second Chance

A federal appeals court has asked the Federal Communications Commission to redo its 2007 decision denying Verizon Communications Inc. the ability to raise wholesale prices for rival phone companies in six East Coast markets. The US Court of Appeals for the District of Columbia has been sitting on Verizon's appeal of the FCC decision for nearly a year and a half. Verizon was seeking a rule change in six East Coast markets: Boston; New York City; Philadelphia; Pittsburgh; Providence, R.I.; and Virginia Beach, Va. "The court's decision confirms that the FCC applied the wrong standard," said Verizon Senior Vice President and Deputy General Counsel Michael Glover. Verizon argued to the court that the FCC didn't take into account the full slate of its competitors when it denied the petition.

Media sector mergers seen few and far between

Takeovers in the media sector are likely to be few and far between until at least next year, especially given the high gearing and shaky cashflows of many firms in the industry, bankers and financiers said. Despite apparent bargain valuations close to six-year lows, and signs of improvement in some debt markets, there are obstacles. There is a large gap between buyers' and sellers' expectations, and the industry has structural challenges. "There aren't really many signs of M&A (mergers and acquisitions) coming back," said Geoffrey Austin, global co-head of media at Deutsche Bank.

Obama's USPTO choice supports patent reform

The Obama Administration's choice to head the US Patent and Trademark Office, IBM's David Kappos, appears to be getting rave reviews, which can only partly be attributed to the fact that Kappos has been a prominent advocate of patent reform. Gigi B.Sohn, president and co-founder of Public Knowledge, said, "President Obama has made an outstanding appointment in nominating David Kappos to become director of the Patent and Trademark Office. Kappos' background with a leading technology company ensures that he is aware of the need for reform of the patent process. We also hope that Kappos will reevaluate the role that PTO has played in copyright issues, concentrating instead on fixing the patent issues that need immediate attention."

Happy Belated Birthday: FCC Turns 75

The Federal Communications Commission opened its doors June 19, 1934, after President Franklin Roosevelt suggested to Congress that there was a need for an agency to oversee all the services "which rely on wires, cables, or radio as a medium of transmission." The Minority Media & Telecommunications Council wished the FCC a happy birthday Friday but said it needed to improve its record. MMTC chairman and former FCC commissioner Henry Rivera said the FCC owed a debt of gratitude to a lot of people who had "devoted their lives to telecom policy and the public interest." He also said that the new FCC needed to devote itself to meeting the challenge of producing diversity and competition "in all of the industries it regulates."

Pushing FCC to Reform Special Access Market

Public interest groups have joined with wireless companies, computers companies and others to push the Federal Communications Commission to reform the special access market. They have formed NoChokePoints Coalition, which they unveiled Monday. They argue that the dominance of incumbent local exchange carriers (ILECs) like AT&T and Verizon, has led to a lack of a "robust and competitive market" for high-capacity broadband service given the ILEC's dominance in the business market.

House Version of Sanders DTV Bill Introduced

Rep Peter DeFazio (D-OR) has introduced a bill that would put another $700 million into the digital television transition over the next two years. The Digital TV Transition Fairness Act is the House version of a bill introduced by Sen Bernie Sanders (I-VT) last December. The bills would extend the DTV-to-analog converter box program--coupons currently can only be applied for through July 31; fund the purchase or an indoor or outdoor antenna, including the cost of installation; and require multichannel video providers to make a $10 package of basic broadcast service available, with broadcasters waiving retrans fees for that service.

2.5 Million Households Still Not Receiving DTV Signals

Nielsen estimates that as of June 14 2.2% of US households (2.5 million total) could still not receive a digital television signal over-the-air.

NBC, CBS Have Conflicting Visions of Broadcast Future

NBC and CBS are at odds about how best to proceed at a time when the future of the business is under serious assault. Is the future of broadcast TV generating big audiences from early morning to late at night? Or is it picking the right spots, focusing instead on syndicating big-ticket programming -- the Olympics or a favorite crime procedural -- across a multitude of screens in exchange for advertising and other revenue? "When I look at the two networks, they are definitely on the opposite ends of the spectrum," said Wachovia Capital Markets media analyst Marci Ryvicker.

Benton

Search