August 2010

AT&T: FCC's 'Third Way' Would Be Road To Ruin

AT&T told the Federal Communications Commission that its proposal to reclassify broadband transmissions as a telecommunications service subject to some Title II common carrier regulations -- FCC Chairman Julius Genachowski's so-called "third way" proposal" -- would be a "road to ruin" based on "incontrovertible" evidence in the public record.

Not mincing any words, the phone company told the FCC that its plan would deliver none of the benefits touted by the chairman, would not stand up in court, would thwart the Obama Administration's broadband agenda, would "abandon" light-touch regulation, widen the digital divide, and would hurt job growth, investment, and the chairman's much-vaunted "innovation." "Whether or not accompanied by partial regulatory forbearance, reclassification would, for the first time ever, saddle the broadband industry with regulation originally developed for telephone monopolists seventy-five years ago."

NCTA To FCC: First, Do No Harm

The National Cable & Telecommunications Association says the Federal Communications Commission should adopt a sort of Hippocratic oath for broadband -- above all, do no arm -- and that applying common carrier regulations to Internet access would definitely violate it. NCTA says that if there is one conclusion that should be drawn from initial comments on the FCC's proposed "third way" title II reclassification of Internet access service, it is that it would be a "very bad idea" to impose the full force of those regulations. But even the FCC's proposal to apply on some of that force, while forbearing most of the Title II regulations, is not the way to go, said NCTA -- sticking with Title I ancillary authority or targeted legislation are both preferable.

Verizon: Title II Classification Would Cause Widespread Harm

Verizon told the Federal Communications Commission that reclassifying broadband transmissions as a telecommunications service subject to some Title II common carrier regulations would cause "widespread harm to the Internet ecosystem."

And besides, it said, it would be illegal. Even worse, said the wireless company, if the FCC imposed those regulations on wireless broadband. Verizon said that regulation proponents have overestimated the ease with which the FCC could just change its mind and reverse its conclusion that Internet access was an integrated information service subject to light-touch Title I regulations. Verizon put in a plug for the policy framework it has teamed with Google to tout. "Targeted legislation of this kind is the best way to strike an appropriate balance that protects consumers and promotes continued innovation and investment, while foregoing unnecessary and harmful regulation," said Verizon.

Wireless To FCC: Don't Tread On Us

Wireless advocacy group Mobile Future (AT&T, T-Mobile, among others) told the Federal Communications Commission that it needs to take the "unique challenges" of wireless broadband in mind when it considers a legal framework for broadband Internet access service.

If it does, says the group, it will recognize that reclassification would ignore that uniqueness and "thwart innovation and investment in the wireless space. Among the distinctions between wired and wireless broadband, they say, are the spectrum constraints of wireless and the need for sophisticated traffic management that hinges on a number of moving pieces, including proximity to the cell site, topography, cell site capacity, weather and the device accessing the network.

Internet Freedom Coalition: Title II Is 'Potentially Disastrous'

Americans For Tax Reform, National Taxpayers Union, the Center for Individual Liberty and other big government critics making up the Internet Freedom Coalition (IFC) have put the Federal Communications Commission's Title II reclassification alongside health care and financial services reform as a new regulatory regime to take aim at.

"Without cause or provocation, the FCC is on a reckless pursuit to regulate the Internet," IFC said. The groups called the FCC's proposal to reclassify Internet access service under some Title II common carrier regulations as a "potentially disastrous" move. They argue the FCC should not rush in with "radical, unilateral action" where the Congress has so far chosen not to tread. "Those who argue that the Commission must rush to regulate merely because Congressional policymaking will take more time ignore both the proper role of the legislative branch of government and the proper role of deliberation in a free, democratic society. The Commission must consider the fact that the Congress may have refrained from regulating the Internet because they see no compelling reason to do so," IFC wrote in its filing.

Tea Party groups out against network neutrality

Tea Party groups are staking out an anti-regulatory position in the fight over network neutrality rules for phone and cable companies. A coalition that included 35 Tea Party groups sent a letter to the Federal Communications Commission on August 11 urging the agency not to boost its authority over broadband providers through a controversial process known as reclassification. The Virginia Tea Party Patriot Federation was among the groups that signed the letter. Jamie Radtke, the group's chairman, said interest in net neutrality is rising in the Tea Party movement. The free-speech argument holds that, by interfering with how phone and cable companies deliver Internet traffic, the government would be thwarting the free-speech rights of providers such as AT&T, Verizon and Comcast.

Oracle Sues Google, Saying Android Violates Java Copyrights

Oracle sued Google for patent and copyright infringement, a surprise move that could cast a legal cloud over the growing number of cellphones that use the Android operating system.

The suit represents a sweeping shot at the current, much admired and often resented, king of Silicon Valley by Oracle's swashbuckling chief executive who has thrived even while alienating many with his aggressive acquisitiveness and push to portray himself as an outsider. The move creates a confrontation between Oracle CEO Larry Ellison, whose company dominates in business software, and Google's Eric Schmidt, a former Sun chief technology officer who spread Sun's open software message at Google.

The suit, filed in U.S. District Court in Northern California, accuses Google of infringing seven Java patents and related copyrights. It seeks unspecific damages and an injunction against "continued acts of infringement" by Google.

Australia Offers Faster National Fiber Network

A top Australian telecommunications official waded into the heated political debate over the nation's digital future August 12, saying a government plan to invest tens of billions of dollars into a new national fiber-optic network would offer homes and business vastly faster connection speeds than originally promised.

The debate concerns plans by the ruling Labor party to spend as much as 43 billion Australian dollars (US$38.6 billion) to make Australia's data and mobile-phone connections among the world's fastest, transforming the country from a relative technology backwater to high-tech modern economy. The plan has been targeted by the opposition Liberal-National coalition, which has said it favors a less-costly alternative that would give the private sector a greater role if the coalition takes power in an Aug. 21 election. Mike Quigley, chief executive of state-owned NBN Co., which will oversee the network buildout, said the network will now be able to offer speeds of one gigabit per second. That is 10 times faster than the previously announced top speed of 100 megabits per second, and well above the baseline 12 Mbps pledged by the opposition. Quigley said Thursday that NBN has always maintained that the network had the potential to offer faster speeds. He disputed suggestions that NBN's announcement was politically motivated. He also told a business lunch that offering such speeds won't have any impact on the cost of building the network, which he said "certainly won't cost over A$43 billion."

News Corp. plans national newspaper for tablet computers and cellphones

News Corp. Chief Executive Rupert Murdoch is embarking on an ambitious plan for a new national digital newspaper to be distributed exclusively as paid content for tablet computers such as Apple Inc.'s iPad and mobile phones. The initiative, which would directly compete with the New York Times, USA Today and other national publications, is the latest attempt by a major media organization to harness sexy new devices to reach readers who increasingly consume their news on the go. The development underscores how the iPad is transforming the reading habits of consumers much like the iPod changed how people listen to music.

"We'll have young people reading newspapers," the 79-year-old Murdoch said during the company's Aug. 4 earnings call. "It's a real game changer in the presentation of news."

NBC Promises No Super Bowl, Olympics On Cable

It has been suggested that if the Super Bowl ever headed to cable, all hell would break loose in Washington. Congress would pass all sorts of roadblocks, courts would issue injunctions, and the FCC would muscle in. This appears to be one reason why Dick Ebersol found himself meeting with FCC staffers and a Department of Justice attorney August 11.

As the Final Four goes to TBS and the Bowl Championship Series to ESPN, it begs the question of whether all premiere sports properties are en route to pay TV? ESPN chief George Bodenheimer stoked the fire recently, saying he "certainly wouldn't rule it out" as far as the Super Bowl coming to his network. But Ebersol, who heads NBC Universal's sports and Olympics programming, sought to assure regulators that the recent past is not prologue. With the FCC and Department of Justice reviewing the proposed Comcast-NBCU merger, Ebersol (and others from NBCU) effectively promised that the transaction would not bring the World Series to Comcast's Versus network.