July 2014

SoftBank: jogging with Sprint

A year ago this month SoftBank chief executive Masayoshi Son completed the acquisition of Sprint in a $21 billion deal, beating US network operator Dish.

SoftBank said the transaction would have “enormous” economic impact, benefits for US consumers and significant opportunities for employment. Sprint’s performance under its new owner has yet to deliver on these big claims. Moribund subscriber growth versus the competition suggests that the benefits for consumers have not helped the company. In last year’s fourth quarter Sprint’s new contract subscribers, at 58,000, were less than a tenth of those added by AT&T. In the first quarter of this year T-Mobile, the fourth-largest US mobile company by total subscribers, added more new customers than AT&T and Verizon combined thanks to aggressive pricing.

Sen Udall to FCC: Local TV Access for All

Sen Mark Udall (D-CO) urged the Federal Communications Commission to review DirecTV's ability to provide local media broadcasts in the Grand Junction-Montrose market (DMA 185), saying everyone is entitled to the crucial information provided by local TV.

"All Coloradans deserve access to the news, weather, sports and emergency information most relevant to them -- regardless of which company provides their TV service. This is especially true for the residents of the Western Slope, who have experienced landslides, wildfires and other severe weather," Sen Udall said in a letter. "The FCC should quickly study this issue and determine the feasibility of DirecTV's delivering local TV service to the residents of Grand Junction, Montrose and surrounding communities."

China's Internet adoption sags to levels not seen since in 8 years

China’s rush to the Internet is slowing, with the country adding only 14.4 million new Internet users in the first half of 2014, the lowest half-year growth in eight years.

There were 632 million Internet users in China in June, according to the government-linked China Internet Network Information Center (CNNIC). Although China has long reigned as the country with the world’s largest Internet population, the services are still struggling to take off in the rural areas, where about 450 million people never go online, said the CNNIC in its bi-annual report. Total Internet penetration in China is at 46.9 percent. This is far lower than the US, which has a penetration rate of 87 percent, according to Internet World Stats.

Brussels reaches legal limits on Google antitrust settlement

Google’s draft antitrust deal with European regulators reaches the limits of what is allowed in European Union law, according to a German policy paper highlighting the constraints on European politicians railing against US tech groups.

A 42-page internal review by Germany’s competition authority offers a cautious assessment for ministers seeking legal means to curb the clout of US internet companies and safeguard consumer data. The Bundeskartellamt offers qualified support for the European Commission’s heavily criticised probe into whether the US group rigs search results to divert traffic from rivals. It argues that Google’s draft EU settlement is a “suitable approach to counter the barriers to competitors” and says the commission went as far as is possible under existing EU competition law. The paper offers some legislative options -- at both national and EU level -- to toughen antitrust law and reinforce the Brussels’ draft pact, but warns that steps to break up Google and “unbundle” services would be harmful and misplaced.

Mobile phone coverage boost for UK villages

Mobile phone coverage in rural areas of the UK is to be improved by Vodafone as the government works on plans to eliminate gaps in the telecoms network.

The telecoms group will provide mobile access for the first time for 100 communities across the UK. Villages can apply for installation of Vodafone’s technology, which will offer 3G mobile coverage. Vodafone uses femtocell technology, which typically involve small base stations and masts, to provide a 3G signal in areas where coverage has been unable to reach. The small boxes can be installed on buildings such as village halls, pubs, shops and homes across a community.

Chamber backs Senate cyber bill

The US Chamber of Commerce is pressuring the Senate to take up and “expeditiously” pass a Senate cybersecurity bill that would encourage companies to share information about cyber threats with each other and the federal government.

The Cybersecurity Information Sharing Act “would strengthen the protection and resilience of businesses’ information networks and systems against increasingly sophisticated and malicious actors,” the Chamber said.

The bill -- from Senate Intelligence Committee Chairwoman Dianne Feinstein (D-CA) and Vice-chairman Saxby Chambliss (R-GA) -- passed through the Intelligence Committee earlier in July by a 12-3 vote.

STELAR Debate Scheduled for 2 p.m. July 22

House leadership has scheduled debate on the STELA Reauthorization (STELAR/ H.R. 4572) Act, for 2 pm on July 22. If nobody asks for a roll-call vote, the bill could pass soon after that 2 pm debate.

If a roll call is called for -- it only takes one House member -- the vote will not occur until 6:30 pm.

Farmers lobbying on ‘clean’ satellite TV bill

Advocates for farmers are putting pressure on members of Congress to support a “clean” reauthorization of an expiring satellite TV law.

In July, the head of the South Dakota Farmers Union met with Sen John Thune (R-SD), the top Republican on the Senate Commerce Committee, and other lawmakers to urge them not to change broader TV licensing rules while extending the Satellite Television Extension and Localism Act (STELA).

Changes to current law could hurt rural customers, Doug Sombke told Sen Thune, and shouldn’t be included in the 2014 “must-pass” bill.

“Senator Thune and many rural lawmakers are very aware of the situation and are sympathetic to the difficult position a STELA with stripped-down consumer protections could cause their constituents in rural America,” said Sombke, who is the head of the National Farmers Union legislative committee.

NAB Won't Oppose House Version of STELA

The National Association of Broadcasters does not oppose the House version of the bill reauthorizing the satellite compulsory license (formerly STELA, now STELAR), which is expected to come to the House floor for a vote.

In Washington parlance, that is a concurrence rather than a yes vote. NAB spokesman Dennis Wharton said the association's position was unchanged from when the bill was passed out of the House Commerce Committee. At that time, NAB said it had concerns -- still does -- but that there was "much to be applauded."

The bill would prohibit coordinated retransmission consent among non-commonly owned TV stations in a market, which cable operators had pushed for, but does not include a provision removing the must-buy provision for retransmission stations, which cable operators had also pushed for, and gotten, in an initial draft.

Time Warner Cancels Shareholders’ Ability to Call Special Board Meeting

Time Warner is playing defense. The company has amended its corporate bylaws and removed a provision that allowed shareholders to call a special board meeting.

In a filing with the Securities and Exchange Commission, Time Warner said the change was effective immediately.

The move gives shareholders -- and 21st Century Fox -- fewer avenues to press the company into a potential deal with Fox, which recently made an unsolicited $80 billion offer to combine the companies. Without the ability to call a special meeting, shareholders supportive of a Fox offer would not be able to replace Time Warner’s board of directors before the company’s next annual meeting, which would likely come next June.

Benton

Search