August 2012

FCC Releases International Broadband Comparison Report

The Federal Communications Commission released its third annual International Broadband Data Report (IBDR or Report). The IBDR is required by the Broadband Data Improvement Act (BDIA) and provides comparative international information on broadband services. Through the presentation of this data, the FCC has the opportunity to evaluate the United States’ rates of broadband adoption, speeds, and prices in comparison to the international community. International data can serve as useful benchmarks for progress in fixed and mobile broadband accessibility.

The United States has regained its role as a global leader in and around mobile broadband. More than 80% of smartphones sold globally run on U.S. operating systems, up from less than 25% three years ago. As the first adopters of 4G LTE, the U.S. is the global test bed for wireless technology and services. In 2011, venture investment in Internet start-ups reached its highest levels since 2001. The apps economy, a $20 billion industry that barely existed five years ago, has created nearly 500,000 jobs.

Broadband access inequality growing across US

[Commentary] Imagine paying $40 per gallon of gasoline when people in neighboring towns are paying $4. Or paying $8 per kilowatt-hour for electricity when others are paying 8 cents. Unthinkable! But this stark disparity is commonplace when it comes to paying for Internet access in the United States.

As the recent report “The Cost of Connectivity" from the New America Foundation documents, something is fundamentally wrong with our broadband. Businesses and households without fast, affordable and reliable access to the Internet are tremendously disadvantaged in the modern economy. And the gap between the most connected and least connected communities is actually getting worse. Some homeowners in North Carolina are reluctant to publicly discuss their total lack of broadband access due to fears of being unable to later sell their property. We cannot have a robust 21st-century economy without affordable, ubiquitous broadband, as many peer nations — like France, Latvia, Japan and Romania — have long understood.

The Sprint Is On for New Wireless Bids

The government's relative leniency in its requirements for giving a green light to the Verizon-SpectrumCo deal has sparked hopes of further wireless consolidation as carriers seek spectrum to build out next-generation 4G LTE networks.

One theory is that Sprint, which needs more capacity to compete with Verizon and AT&T, will buy MetroPCS, which has some spectrum that is contiguous with its own. Leap Wireless International could also be a Sprint takeover candidate. Like Metro, its network uses the same technology, allowing for easier customer transfer. Metro's spectrum is more valuable than Leap's because it is in major cities. But Sprint's board already spurned Metro in February, making a reversal unlikely. These deals would also come with considerable costs. Verizon is paying 69 cents per megahertz pop—an industry metric representing bandwidth per person in a coverage area—for the spectrum it is buying. But an acquirer would have to pay 83 cents and 87 cents for Metro and Leap, respectively, just to cover their net debt, according to BTIG. What may make more sense for Sprint is buying T-Mobile USA.

Google, Facebook Working on India Request to Remove Content

Google and Facebook said they are working on requests from India to remove from their web sites "inflammatory and hateful content" that New Delhi blames for sparking a mass exodus of people from several cities.

Tens of thousands of panic-stricken students and workers from northeast left for home last week, spurred by rumors they would be attacked in retaliation for communal violence in Assam, a northeastern state, that left at least 78 people dead. India blocked as many as 245 Web pages for hosting video clips and other content that the authorities said were distorted and were used for spreading the rumors. The government is wary of social networks being misused for inciting violence and has asked companies including Google, Facebook, Twitter and Microsoft to remove such content from their websites.

Bill Gates Part of $12 Million Round for Satellite Mobile Broadband Start-Up

Bill Gates is part of a $12 million investment round in Kymeta, a company that aims to offer users satellite broadband access on the go. Kymeta is a spinout from Intellectual Ventures, the Nathan Myhrvold-run company best known for its irksome strategy of amassing patents and then looking to collect from companies whose products make use of the patents. The Redmond (WA) -based company is the second spinout for Intellectual Ventures, preceded by TerraPower, which aims to build a new kind of nuclear reactor. Other backers of Kymeta include Liberty Global and Lux Capital. Kymeta’s technology uses something called “metamaterials,” artificial materials that can manipulate electromagnetic radiation that can steer a radio signal toward a satellite, thereby creating a continuous broadband link.

Google's 2012 PAC spending nears half a million

Google's political action committee (PAC), Google NetPAC, shelled out $39,000 in campaign donations in July, bringing the search company’s campaign contributions for the year to nearly a half million dollars, according to a report filed with the Federal Election Commission.

The search giant’s PAC has given just over $423,000 in campaign donations in the first seven months of the year. In July, the PAC wrote checks for $26,000 to Republican candidates and $13,000 to Democratic ones. That included contributions of $5,000 each to GOP Whip Rep. Kevin McCarthy (R-CA), House Armed Services Committee Chairman Buck McKeon (R-CA) and Reps. Jeff Flake (R-AZ), Peter Roskam (R-IL) and Tim Scott (R-SC). On the Democratic side, Google’s PAC gave money to Senate Majority Leader Harry Reid (D-NV) and Sen. Jay Rockefeller (R-WV), and poured $5,000 into Sen. Bob Casey (PA)'s coffers. Other tech company PACs have also been active in 2012.

House panel to examine turning over government airwaves to private sector

The House Commerce Committee's subcommittee on Communications and Technology will hold a hearing to examine freeing up federal-government frequencies for commercial use.

Subcommittee Chairman Greg Walden (R-OR) did not announce a witness list or say when the sub-panel will hold the hearing. Congress is on recess until September. "The subcommittee will continue to examine how both federal agencies and commercial wireless carriers might benefit from more efficient government use of spectrum," said Chairman Walden. "As the single largest spectrum user, the federal government could save taxpayers money and make more frequencies available to meet American consumers’ growing demand for mobile broadband services.”

Unhappy Creditors Want Tribune Plan Put on Hold

Creditors unhappy with Tribune Company's plan to exit bankruptcy protection are asking a judge to halt it while they appeal. The judge in Delaware approved the plan last month. But some creditors are challenging the settlement of legal claims stemming from Tribune's 2007 leveraged buyout and the treatment of certain bondholders under the plan.

Liberty Media files with FCC to take control of Sirius XM—again

Liberty Media has filed a new application with the Federal Communications Commission saying it plans to take full control of Sirius XM and its board by increasing its stake in the satellite operator above 50 percent.

Liberty said in the filing that it is applying to take "de jure" or absolute control of the company, which includes "the ability to control the membership of the Sirius Board of Directors." It currently holds five out of 13 seats on the board. Liberty had previously applied to take "de facto" control of Sirius XM but the FCC rejected that bid, saying its application was not "sufficient." At the time, Liberty's stake in the satellite radio operator was about 40 percent.

Of Course Networks Don't Reach Many Hispanics: Look at the Stereotypes on TV

[Commentary] I could not help but react with a mix of amusement and frustration as I read a recent New York Times article describing how the television networks are struggling to appeal to Hispanics. This "struggle" goes back to the most basic premise of communication: understand your audience. It's that simple. How in the world do the networks expect to appeal in a relevant way to the growing Hispanic population if they continue to portray Latinos in a stereotypical and often condescending way?

Benton

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