August 2010

German Court Turns Down Injunction Against YouTube

A German court on August 27 declined to issue a preliminary injunction against YouTube which would have forced the site to remove 75 music videos in a drawn-out conflict with eight royalty collecting bodies over licensing fees. But the next round may well go to GEMA, ASCAP, BMI and five other royalty collecting bodies trying to get license fees for music videos shown on YouTube in Germany, the Hamburg court said. GEMA, which says it represents about 60,000 German authors and musicians, tried but failed to reach an agreement with YouTube on license fees.

Canada regulator enforces Internet "speed-matching"

Canada's established telecom carriers must allow smaller Internet providers access to their high-speed fiber networks at the same speed they offer to their own customers, Canadian Radio-television and Telecommunications Commission (CRTC) -- Canada's telecom and broadcast regulator -- ruled on August 30, but it said they can charge a 10 percent mark-up for doing so. CRTC said cable companies, which have provided "speed-matching" for third-party providers since 2006, must make it easier for secondary Internet service providers to access their networks.

Yahoo Japan, Google expanding video offerings

Yahoo Japan Corp and U.S. firm Google Inc are broadening the scope of their video delivery services in Japan. Starting in September, Yahoo Japan's unit GyaO Corp will add dramas from public broadcaster NHK and cartoons and other programs from TV Tokyo Corp to its pay-for-view streaming service, charging several hundred yen per show. The agreement with NHK and TV Tokyo means that GyaO will offer programming from all major television broadcasters.

The New Now: How Real Time Redefines the Now

Nova Spivack thinks that 21st century will be about the Now.

Spivack argues that prior to the 20th century, society generally was preoccupied with the past, studying history and reflecting on the past. In the 20th century we became obsessed with the future, a fact reflected in furious pace of inventions and social obsession with science fiction through the decades. However, the 21st century so far, is about the present. The emergence of the real time web is about the present, and the present impacts how we invent, Spivack argues. Over the next ten years, we are going to be looking for ways to deal with the near ubiquitous Internet connectivity and data around us, almost in real-time.

"With the real time web, the amount of information we have to handle is changing the Now," he said. "Now is becoming a lot denser. There is a lot more information in per unit of Now. The Now is getting shorter. The horizon is getting narrower. Now has gone from days to hours to seconds."

The big challenge: attention.

Check out the video

Input Sought on Improving the International Broadband Data Report

The Federal Communications Commission's International Bureau recently released the first International Broadband Data Report (2010 IBDR). The 2010 IBDR presented basic data in three main categories for communities in 37 countries: 1) publicly-available pricing information on broadband Internet access services available from Internet service providers (ISPs); 2) population, education, and other demographic information; and 3) descriptive information on regulatory structures, market conditions, and other media.

Now the FCC seeks public comment regarding the preparation of next year's IBDR, and how best to build on the foundation of the 2010 IBDR. What improvements can be made to the data and analysis used in the 2010 IBDR to make next year's IBDR more useful, particularly for policymakers, including for the Commission's overall assessment regarding the reasonable and timely deployment of broadband services to all Americans? Are there additional data and analysis that could better illuminate similarities and differences between broadband technologies, markets, and policies in U.S. and comparable foreign communities? Should the FCC provide side-by-side comparisons of the price and performance of popular broadband offerings in U.S. and foreign communities? The FCC invites interested parties to submit comments to assist this effort to improve upon the 2010 IBDR, including with respect to analytic techniques or approaches to estimate the effects of competition on the availability, capability, and adoption of broadband in foreign communities. The public notice seeks specific comment on improving several data collections pertaining to the IBDR. Comments Due: 09/27/2010. Reply Comments Due: 10/12/2010. Contact: Arthur Lechtman at (202) 418-1465, email: Arthur.Lechtman@fcc.gov (Dkt No 10-171)

2010 International Broadband Data Report

On August 27, the Federal Communications Commission released its first International Broadband Data Report as required by the Broadband Data Improvement Act (BDIA). The report presents data and information on international broadband service capability.

The BDIA requires the FCC to, among other things, include in its annual broadband deployment report "information comparing the extent of broadband service capability (including data transmission speeds and price for broadband service capability) in a total of 75 communities in at least 25 countries abroad for each of the data rate benchmarks for broadband service utilized by the FCC to reflect different speed tiers." For this comparison, the BDIA directs the FCC to choose international communities comparable to U.S. communities with respect to population size, population density, topography, and demographic profile. The FCC is also directed to include "a geographically diverse selection of countries" and "communities including the capital cities of such countries." The FCC must also identify a number of specific similarities and differences in each community, including "their market structures, the number of competitors, the number of facilities-based providers, the types of technologies deployed by such providers, the applications and services those technologies enable, the regulatory model under which broadband service capability is provided, the types of applications and services used, business and residential use of such services, and other media available to consumers."

$4 Billion Cut in Verizon, AT&T Fiber+ DSL Spending

Verizon's wireline capital spending in the first six months of 2010 was $3.35 billion, down nearly $1 billion from last year. For the full year that is nearly a $2 billion drop, which corresponds to their plan to cut the FiOS build in 2010 by 2/3rds. Since they've also cut the post 2010 FiOS build by 2-4 million homes, this is probably a permanent drop. Spread over 4 years, the total cut in Verizon wireline/FiOS spending would be about $7 billion, about the same as the total government money spent on the broadband stimulus.

The numbers at AT&T are similar but not broken out. AT&T cut U-Verse by 1/3rd last year, one reason they went 92K negative on broadband this quarter.

These multi-billion dollar cuts came after the U.S. enacted a stimulus program and now is talking about huge subsidies supposedly for broadband. Verizon CEO Ivan Seidenberg is a smart guy who told investors that he thinks the government will pay up if he doesn't invest. The stimulus, as Tom Hazlett predicted, resulted in fewer new broadband connections as company after company reduced spending hoping the government will pay instead. Verizon is claiming 20-30% of their lines require a subsidy and asking for billions or they might discontinue voice service. Ironically, Verizon and AT&T just reassured Wall Street their wireline margins are staying up.

Fox v. FCC: FCC Concentrates And Asks Again

In July, the US Court of Appeals for the Second Circuit overturned the Federal Communications Commission's indecency enforcement regime as unconstitutional. After considering its options, the FCC has chosen to go back to the three judges who rejected the policy, trying to convince them that they got it wrong and ask the entire en banc Second Circuit to reverse the three-judge panel's decision.

According to the FCC's petition for rehearing, the Second Circuit panel's Fox decision went too far in overturning the entire indecency enforcement regime. The Commission asserts that the panel's conclusion - that the FCC's overall indecency policy is unconstitutionally vague - is inconsistent with earlier decisions by the Supreme Court, the D.C. Circuit, and even the Second Circuit itself. The Commission argues that the Fox decision rejects the "contextual approach" to indecency analysis the FCC has used in the past - and that, by so doing, leaves the Commission with no way to enforce the federal laws prohibiting indecent broadcasts.

The Second Circuit now must decide whether or not to grant rehearing, either by the original panel or en banc. While that may sound simple, it's not. In particular, the en banc rehearing process in the federal courts ranks up there with papal elections when it comes to procedural quirks. The FCC's petition will first be circulated to all ten active judges on the Circuit as well as Senior Judge Pierre Leval, who sat on the original panel. Any of those 11 can ask that his/her colleagues be polled as to whether or not to consider the petition. If nobody asks for such a polling, the petition is denied. If polling is requested, then the ten active judges - but no senior judges (i.e., Judge Leval doesn't participate) - are polled. Unless a majority of those polled vote for rehearing, the petition is denied. If a majority of the poll votes to grant rehearing, then the case is re-briefed and re-argued in front of all ten active judges and Senior Judge Leval. There is no guarantee that, even if the case gets that far, the FCC would prevail. A majority of the en banc court could just as easily affirm the panel's decision.

In other words, the FCC has a long row to hoe. Meanwhile, a couple of other indecency cases also continue to wend their way through the Courts.

NCTA Asks FCC to Reconsider Broadband Data Report

The National Cable and Telecommunications Association is urging the Federal Communications Commission reconsider its Sixth 706 Report issued on July 20, 2010.

NCTA requests that the FCC reconsider both the appropriateness of the dataset relied on in the Sixth 706 Report and its conclusion that deployment of broadband networks is not proceeding in a "reasonable and timely" manner. NCTA argues that the FCC erred in failing to consider current information and reasonably anticipated developments in reaching its conclusion that the "reasonable and timely" standard was not being met. NCTA notes that the FCC relied on Form 477 data reflecting deployment as of June 2009 and December 2009 and claims that if the FCC had considered the more recent data in its possession, some of the largest counties identified as unserved would not have been on the list.

Without fast broadband, towns and schools find selves withering

It's the 21st century, and the Information Age has revolutionized business, culture and life -- unless you're any of the 415 people in the East Texas town of Chireno who find themselves off the grid.

About 45 percent of Texas has no access to high-speed Internet service, but most of that land is sparsely populated. Chireno, however, is an incorporated city within a half-hour's drive of three larger ones, and it's still on the outside of the Web looking in. Make no mistake: This is a one stop-light town. It's also a five-business town, with a gas station, a grocery/cafe, air conditioning repair service, an acoustical ceiling tile factory and a chain bank. And, according to residents and government officials, this is as good as it's going to get unless broadband Internet service in made available here.