June 2010

Baker: Inventory First, Then 'Win-Win'

A Q&A with Federal Communications Commissioner member Meredith Baker. She broadcasters' call for a spectrum inventory, a comprehensive review of all spectrum usage — a move that would slow down the reallocation momentum and, broadcasters hope, uncover other, more accessible, spectrum lodes. On the other hand, Commissioner Baker calls reallocation a "win-win" and says she doesn't share the broadcasters' skepticism about FCC Chairman Julius Genachowski's claim that the reallocation will be voluntary. She also encourages Congress to give the FCC the authority to share proceeds from the auction of TV spectrum with broadcasters — a key element of Genachowski's plan.

Must Carry Proves To Have Staying Power

[Commentary] The must-carry rules have dodged another bullet. T

he Supreme Court last month declined to hear an appeal filed by Cablevision of last year's decision by the U.S. Court of Appeals for the Second Circuit upholding a must-carry "market modification" ruling by the Federal Communications Commission. The must-carry rules have long been a thorn in the side of the cable industry — and understandably so. Those rules compel cable companies to carry local stations in their markets, for free. Of course, recent developments on the retransmission consent front might indicate that local station carriage may in fact have considerable value to cable operators. But still, the concept of "must-carry" — where the government orders a company to give away some of its services for free — is a source of considerable unhappiness in Cable Land.

Google Sued by Frontier Communications Over Patent

Google was sued by Frontier Communications Corp. and accused of infringement of a new patent for enhanced telephone services. Google is violating patent rights with products such as the Google Voice system, Frontier contended in a complaint in federal court in Delaware. "Google's deliberate infringement of the patent has greatly and irreparably damaged Frontier," plaintiff's lawyers said in court papers seeking unspecified damages and an injunction to stop the use of the technology. Last month, Google agreed to buy Global IP Solutions Holding AB, a maker of voice and videoconferencing software, for about $68 million to help expand Internet video and audio capabilities.

Blackwell to Lead FCC's Tribal Broadband Initiatives

Geoffrey Blackwell will return to the Federal Communications Commission will lead the FCC's efforts to work with Native Nations and carry out the National Broadband Plan's recommendations for bringing broadband to all Native communities.

Among his other responsibilities, Blackwell will be charged with helping to implement the recommendations outlined in the National Broadband Plan, including establishing a new office dedicated to addressing Native needs and overseeing a new FCC-Native Nations Broadband Task Force. He will also be responsible for developing and implementing a robust policy of meaningful dialog and consultation with Tribal entities.

Blackwell is a recognized expert in the fields of Tribal economic infrastructure development. In April 2009, Mr. Blackwell was appointed to the FCC's Federal Advisory Committee on Diversity for Communications in the Digital Age. In September 2009, he was elected to be the Commissioner representing the United States on the Indigenous Commission for Communications Technologies in the Americas. From 1999-2005, Mr. Blackwell served at the FCC as Senior Attorney and Liaison to Tribal Governments. While at the FCC, he played a central role in the FCC's initiatives to stimulate Tribal telecommunications and broadcast services, including the development of the FCC's 2000 Statement of Policy on Establishing a Government-to-Government Relationship with Indian Tribes, adoption of the enhanced Lifeline and Link-Up support for residents of Tribal lands, and rules for cultural preservation review of Tribal sacred sites in tower siting.

Since his previous service at the FCC, Mr. Blackwell has been the Director of Strategic Relations and Minority Business Development for Chickasaw Nation Industries, Inc., which oversees a family of companies wholly-owned by the Chickasaw Nation. In addition, Mr. Blackwell has chaired the Telecommunications Subcommittee of the National Congress of American Indians for five years. He has also served on the boards of the National Small Business Association, the National Federation of Community Broadcasters, the Acoma Business Board of Acoma Pueblo, and Native Public Media. Earlier in his career, Mr. Blackwell practiced law in Boston at Hale and Dorr LLP. He holds an B.A. in Government from Dartmouth College and a J.D. from the University of Virginia School of Law. Mr. Blackwell is an enrolled member of the Muscogee (Creek) Nation and is also of Omaha, Choctaw, and Chickasaw heritage.

FCC's Interoperability Center Advisory Committee

The Federal Communications Commission's Public Safety and Homeland Security Bureau has appointed twenty members to the Emergency Response Interoperability Center Technical Advisory Committee. Each appointee is either a federal official, an elected officer of a state or local government, or a designated employee authorized to act on behalf of such an officer. These appointments are effective immediately and shall terminate at the Bureau's discretion.

The following individuals are selected for membership on the Committee:

  • Christopher Ambrose (Fire Department of New York)
  • Ahsan Baig (City of Oakland, California)
  • Ross Bolton (State of Oregon)
  • Stephen Devine (Missouri Department of Public Safety)
  • Michelle Geddes (City and County of San Francisco)
  • James Hassett (New York Police Department)
  • Bradley Hokanson (Territory of Guam)
  • John Horst (New York Police Department)
  • Alan Komenski (Washington State Police)
  • Morton Leifer (Clarkstown, New York, Police Department)
  • Marlin Mackey (New Mexico Department of Information Technology)
  • Walt Magnussen (Texas A&M University)
  • Michael Ridley (New York State)
  • Allan Sadowski (North Carolina State Highway Patrol)
  • Kathy Skiles (Pennsylvania State Police)
  • Thomas Struzzieri (Virginia State Police)
  • John White (Arlington Fire Department)
  • Scott Wiggins (Minnesota Department of Public Safety)
  • Stanley Wu (City of Seattle, Washington)
  • Joseph Yurman (New York City Transit Authority)

Comcast/NBC merger: should FCC require network neutrality?

In comments about the proposed Comcast-NBC merger filed at the Federal Communications Commission, Public Knowledge says that it doesn't like the merger, but can see it moving forward under various conditions... like network neutrality.

"The Commission must impose strict non-discrimination rules that prevent the [new] entity from interfering with the distribution of non-affiliated content through filtering, blocking, or degrading distribution. The growth of Internet distributed content should not be stifled simply because the newly formed entity would prefer consumers continue paying for its MVPD [multi-channel video program distribution] service." Comcast's ability to control users' access to content means that it can unfairly discriminate against non-NBCU content," PK warns, "either by refusing to connect users to the online video content of established competitors, or, more likely, simply de-prioritizing or throttling the bandwidth available to these competitors versus NBCU content." But the group doesn't just want "strict non-discrimination rules" attached to the new entity. The government should also require it to provide wholesale broadband access to unaffiliated Internet Service Providers. In other words, line-sharing, which cable companies have never been required to offer.

McCormick: US broadband still the most advanced at the global level

At the Roadmap to Broadband Adoption conference hosted by Broadband for America, the US Internet Industry Association, and NetLiteracy, USTelecom President Walter McCormick identified the regulatory process as a potential roadblock to broadband innovation.

At the outset, McCormick noted that , United States broadband adoption and telecommunications-related technological efficiency was still the most advanced at the global level. "Indeed, when thinking of the Internet, one is hard-pressed to think of significant innovations that have taken place beyond our borders," McCormick said. "The first goal of the FCC's National Broadband Plan is to increase the availability of fix-line broadband access from 95% to 100%, but the goal itself of reaching that final 5% implicitly highlights the accomplishment has already been achieved in broadband coverage reaching 95% of American consumers and 97% of American businesses." Continuing on this note, McCormick noted that access to broadband coverage has been expanding at unprecedented levels among consumers, having become near-ubiquitous after about 9 years, relative to previous and what he saw as equally significant technological developments. "It took personal computers and cable television 20 years to reach this tipping point. It took cell phones sixteen years," McCormick said. "Broadband is occurring at an unprecedented rate." Having begun by explaining the status quo, McCormick then moved to addressing the question of why broadband is not universal. His remarks touched on a variety of factors, while stressing that none of them is a universal cause for lack of access. McCormick especially saw price and access as lesser concerns. "Certainly price and access matter, but for many these factors are not determinitive, and simply addressing price is not a panacea," McCormick said. "Nearly 40% of those who choose not to have broadband say it's because it's simply not relevant in their lives."

Cost Still Major Factor in broadband Adoption

Consumer Research Director for the Federal Communications Commission John Horrigan led a panel on broadband adoption at the Roadmap for Broadband Adoption conference sponsored by Broadband for America.

Horrigan detailed the new data obtained via a large scale phone survey which contacted over 5,000 people that purposefully oversampled non-adopters to obtain detailed data. The sample showed that price was still the main reason why individuals do not adopt with 15% of respondents claiming the monthly fee is too high for them along in addition the cost of the hardware is too expensive and the fees are too high.

But Intel's Rick Herrmann emphasized the need for increased education as a mechanism for increasing long term adoption. Robert Shapiro, a Senior Fellow of the Georgetown School of Business, claimed that there is not a digital divide but rather a lag; lower income communities which are unable or unwilling to adopt will eventually adopt as the price drops.

CBS: We're In The (Retrans) Money!

CBS chief financial officer Joe Ianiello made it plain at an SNL Kagan conference last week: When it comes to retransmission consent, broadcast networks are taking the cake. And CBS wants every last crumb.

CBS is on track to generate about $100 million in retrans revenue in 2010, based on an average rate of 50 cents per subscriber per month. But Ianiello said at the SNL Kagan TV and Radio Finance Summit last week that total amount could grow exponentially — to as much as $250 million to $500 million over time as rates rise to $1 per subscriber and CBS gains an increasing share (upwards of 50%) of its affiliates' retransmission- consent fees. While that may not sit well with station-group owners, some of whom have resisted such overtures in the past, Ianiello said that it reflects the value that network content brings to local TV operations. And though the network could bypass the stations altogether by offering content to distributors directly, Ianiello said that would be leaving some ad revenue on the table.

"We want both," Ianiello said of advertising and retrans revenue. "People say, 'You want your cake and you want to eat it too.' Who wants cake and not to eat it?"

The Gulf Disaster Becomes a Beltway Story

Coverage of the Gulf oil disaster took a decidedly political turn as the story entered its ninth straight week among the top news events.

The spill accounted for 44% of the newshole from June 14-20, its highest level of coverage to date, according to the Pew Research Center's Project for Excellence in Journalism. That's up markedly over the previous week (34%) and represents the most coverage for any story since the landmark health care bill passed Congress, filling 45% of the newshole from March 22-28. After weeks in which the cleanup, containment and impact of the spill dominated the Gulf coverage, the narrative pivoted substantially last week. Nearly half of the spill coverage focused on BP's role in the disaster and its responsibilities moving forward. The next largest portion, about a third, focused on the federal government's actions and response. Only about one-fifth concerned the ongoing attempts to fix the leak and clean up the mess. The spill also generated more than six times as much coverage as the week's No. 2 story. The U.S. economy filled 7% of the time on television and radio, and space online and in print, led by news about housing and jobs. The No. 3 story, at 5%, was the war in Afghanistan, with reports of vast mineral discoveries in the country and General David Petraeus's fainting spell in the Capitol.