May 2013

Crazy like a Fox: how broadcast networks could rake in billions by going cable-only

It's easy to dismiss the notion of America's over-the-air stalwarts going dark — it seems unthinkable. But it's not.

"If we go to cable, if we are forced to, then about 10 percent of America will not get our signal and I don't think they will like that," CBS chief Leslie Moonves said at a recent panel. And for Moonves, it could be a win-win: what if CBS and its fellow broadcasters are financially incentivized to the tune of billions of dollars in exchange for going off the air? It's not as far-fetched as it sounds. The Federal Communications Commission's so-called incentive auctions, which have been in development for several years, are designed to give television broadcasters a voluntary, opt-in opportunity to sell the lucrative RF spectrum that they own. The idea is simple: having run out of easy ways to keep up with exponential growth in the demand for high-speed wireless data — e.g., your LTE smartphone — the FCC is turning to television stations to pony up any airwaves they're not using or could live without in exchange for cash. Considering how hard high-quality spectrum is to come by, these auctions could generate billions upon billions of dollars for TV stations, possibly $20 billion or more by some estimates.

Subcommittee on Communications, Technology, and the Internet
Senate Commerce Department
June 4, 2013
2:30 pm



New America Foundation
Wednesday, May 15, 2013
12:15 -1:45 p.m.

Last week's nomination of Tom Wheeler as the next Chairman of the Federal Communications Commission (FCC) marks the start of what could be a lengthy confirmation process. Although President Obama has designated Commissioner Mignon Clyburn as Acting Chair, the transition to new leadership at the FCC often results in important decisions being put on hold. However, with consumer demand for mobile broadband exploding, the FCC is already behind the curve and must keep moving. Outgoing Chairman Julius Genachowski is leaving behind a docket of unfinished business that is critical to promoting mobile market competition and consumer protection.

Spectrum reallocation, mobile handset interoperability and prison phone justice are among a number of pressing problems too critical to delay further. Our diverse panel will identify the most important proceedings and reforms that need to be fast-tracked or finalized, both during and after Commissioner Clyburn's tenure as Acting Chairman.

Featured Speakers

Rebecca Thompson
General Counsel, Competitive Carriers Association

Matt Wood
Policy Director, Free Press

Steve Sharkey
Director of Engineering & Technology Policy, T-Mobile

Steven Renderos
National Organizer, Center for Media Justice

Michael Calabrese
Director, Wireless Future Project, New America Foundation

Moderator
Sascha Meinrath
Vice President and Director, Open Technology Institute, New America Foundation

To RSVP for the event
http://newamerica.net/events/2013/unfinished_business_fcc_transition

For questions, contact Stephanie Gunter at New America at (202) 596-3367 or gunter@newamerica.net

Follow @OTI and use #FCCtransition to start the conversation online.



"Obama-Phones" or "Gipper-Phones" -- What's in a Name?

[Commentary] It’s a sad commentary on the state of our public discourse that clever misnaming of issues can totally recast what should be substantive policy discussions. The most obvious example: adding the suffix “gate” onto anything that smacks of real or alleged political wrong-doing in the wake of Richard Nixon’s Watergate is usually sufficient to muddy the waters beyond all reality; often it demolishes any chance for serious debate. Remember Billygate, NannyGate, CoinGate, CableGate and all the rest? The latest example is the current Lifeline program that provides basic prepaid cell phone subsidies to low-income citizens. I knew its opponents were out to kill serious discussion (and the program, too) when they came up with the cute idea of calling the issue “Obama Phones.” As a supporter of the program, I think it would be more realistic to call them “Gipper Phones” since the program started in the Reagan years, or even “Bushie Phones” because that’s when the Lifeline program made room for wireless services. Tempted as I am, I think that would only further distract us from looking at the program on its merits.

Catch-Up Talk with Blair Levin Yields Some Surprises

The man who was charged with crafting a plan to bring broadband to all Americans isn’t happy about the way that plan is being implemented.

Currently with the Aspen Institute, Blair Levin said, “The FCC is becoming more of a political institution and less an expert agency.” Like other DC political institutions, he said, the commission is “increasingly caught up in a one-note narrative . . . of self-praise rather than focusing on providing the expertise and analytic agility necessary to adjust programs to provide bandwidth abundance to constituencies it is meant to serve.”

It was up to the FCC to implement the ideas recommended in the National Broadband Plan – and the way Levin sees it, much of that work has been left undone. One of the most important pieces of information to emerge out of the NBP was that the majority of the homes that can’t get broadband are in areas served by the nation’s largest price cap carriers – and that hasn’t changed much. Although he noted that CenturyLink is doing some upgrades, he said “AT&T is doing zero, and Verizon sold some lines to Frontier but they’re not doing anything with what they held on to.” Levin also argued in his recent speech that the FCC essentially “punted” on “the critical issue of contribution reform.”

In other words, the FCC’s new broadband-focused Universal Service program appears to be doomed to be funded as a percentage of carriers’ long-distance voice revenues – a methodology that is becoming increasingly unsustainable as long-distance voice revenues decline.

Cleaning Up the Airwaves

[Commentary] Can Tom Wheeler make good on the President’s early promises to make the U.S. a 21st Century digital nation that reflects the diversity of our country?

The Federal Communications Commission is the key federal agency for our digital age. It regulates all wired and wireless communications service, including how all of us get Google and Facebook and everything else we call the Internet. Founded during the early progressive era, it is tasked with getting the powerful corporate interests that dominate the media and telecommunications industries to act in the public interest. Since the Reagan administration, determining just what is in the public interest has too often been confused with finding the middle ground between competing business interests. Many of us in the progressive community hoped President Obama would establish an FCC that would advance vigorous local competition, hold accountable local broadcasting and telecommunications companies, and promote both the diversity of local voices and greater ownership opportunities for women and minorities. The Genachowski FCC promised to pursue these goals; like other federal agencies led by Obama appointees, it was going to be data-driven. Instead, progressive regulation has stalled or regressed over the past four years. In juggling the competing interests of industry groups—the NCTA, the CTIA, and the National Association of Broadcasters (NAB)—the FCC has failed to advance media diversity and to enforce net neutrality. Chairman Genachowski failed, in other words, to keep candidate Obama’s two key promises.

Tech Lobby Pushes for Tweaks to Immigration Bill

Lobbyists for the technology industry, having gained much of their wish list in the immigration bill drafted in the Senate, are now pushing to modify language they consider onerous.

The Senate bill, which is scheduled for markup in the Judiciary Committee on Thursday, would allow Silicon Valley companies to bring in many more foreign computer specialists on temporary work visas through a program known as H-1B. The bill also places restrictions on how companies can hire and fire employees, which the industry’s representatives in Washington are trying to massage. For one, the industry is worried about a provision, inserted by some Senate Democrats, that would allow companies to hire a foreigner only if “an equally qualified American” is not available. The draft allows the Department of Labor to scrutinize hiring decisions, which the industry calls undue interference. The bill also contains language that compels companies to promise not to lay off American workers within three months of hiring foreign guest workers. Additionally, if a company like I.B.M. places a foreign worker at a client company’s site — say, a bank — for a short-term project, the bill also requires the bank to prove it did not displace an American worker in the process.

Newspapers: A Cautionary Tale for Local TV

The parallels between TV stations today and newspapers in 2005 should be heeded by local TV executives.

The trends are equally troubling and there is much they can learn from newspapers’ experience and response. Clearly, audience and advertisers are moving to digital platforms. But TV stations confront the same challenges as newspapers: digital is returning significantly less revenue than the core product and advertisers don’t yet know how to effectively buy across media channels.

Big Data from Cheap Phones

At a computer in her office at the Harvard School of Public Health in Boston, epidemiologist Caroline Buckee points to a dot on a map of Kenya’s western highlands, representing one of the nation’s thousands of cell-phone towers. In the fight against malaria, Buckee explains, the data transmitted from this tower near the town of Kericho has been epidemiological gold.

When she and her colleagues studied the data, she found that people making calls or sending text messages originating at the Kericho tower were making 16 times more trips away from the area than the regional average. What’s more, they were three times more likely to visit a region northeast of Lake Victoria that records from the health ministry identified as a malaria hot spot. The tower’s signal radius thus covered a significant waypoint for transmission of malaria, which can jump from human to human via mosquitoes. Satellite images revealed the likely culprit: a busy tea plantation that was probably full of migrant workers. The implication was clear, Buckee says. “There will be a ton of infected [people] there.” This work is now feeding into a new set of predictive models she is building.

Broadcast Video Will Soon Be Packed into Smartphone Signals

If you want to watch video on your phone or tablet, you’ll find that many networks can’t always serve up the data fast enough. So your choices are either to find a Wi-Fi hotspot, take your chances on congestion and high data charges on a cellular network, or plug in a special dongle that picks up TV broadcasts. Early next year, an emerging wireless technology known as LTE Broadcast could change all that, essentially making it possible for carriers to put a TV-like broadcast stream within LTE cellular signals.

Putting data in broadcast mode reduces congestion but makes the most sense in situations where everyone is watching the same newscast, sports match, or other special piece of content at the same time. In such situations, using LTE Broadcast mode, a carriers’ transmitter needs to just send a signal out over one channel rather than separate ones for each mobile device. That’s how the traditional TV broadcast works: it doesn’t matter if 100 or a million people are watching, because the content is out there for the taking. The software in a carrier’s base station can tweak the LTE signal to include one or more channels that work in broadcast mode–enabling multiple users to receive the same content at the same time.