Cecilia Kang

The United States Court of Appeals for the Sixth Circuit upheld restrictive laws in North Carolina and Tennessee that will halt the growth of municipal broadband networks. While the decision directly affects only those two states, it has cast a shadow over dozens of city-run broadband projects started nationwide in recent years to help solve the digital divide.

In siding with the states, the court hobbled the boldest effort by federal officials to support municipal broadband networks. While the court agreed that municipal networks were valuable, it disagreed with the Federal Communications Commission’s legal arguments to pre-empt state laws. Now, cities like Wilson (NC) fear they have little protection from laws like those in about 20 states that curb municipal broadband efforts and favor traditional cable and telecom firms. City officials say cable and telecom companies that have lobbied for state restrictions will be encouraged to fight for even more draconian laws, potentially squashing competition that could lead to lower prices and better speeds to access the web. “This is about more than North Carolina and Tennessee,” said Deb Socia, executive director of Next Century Cities, a nonprofit coalition of cities exploring broadband projects. “We had all looked to the FCC and its attempt to pre-empt those state laws as a way to get affordable and higher-quality broadband to places across the nation that are fighting to serve residents and solve the digital divide.”

A look at a trend unfolding in hard-to-reach rural spots nationwide. For years, such communities have largely been left out of the digital revolution because they had only intermittent internet access, often through a patchwork of satellite, dial-up or wireless service. Telecom and cable companies shunned the areas because it was too expensive to bring equipment and service over long distances to so few people. Now high-speed internet is finally reaching these remote places, but not through the telecom and cable companies that have wired most of urban America. Instead, local power companies are more often the broadband suppliers — and to bring the service, they are borrowing techniques and infrastructure used to electrify the United States nearly a century ago. In some cases, rural municipalities are also using electrification laws from the early 1900s to obtain funds and regulatory permissions reserved for utilities, in order to offer broadband.

Federal regulators announced it has filed a lawsuit against Amazon.com for allegedly making it too easy for children to make purchases when using mobile apps without a parent's permission.

The Federal Trade Commission said Amazon charged parents millions of dollars of unauthorized payments for what's known as "in-app purchases," typically make-believe items popularly offered within mobile games such as Candy Crush Saga that enhance a game or allow a user to advance levels.

The FTC said in its suit that it seeks a court order for the company to refund families affected by the unauthorized charges that began in 2011. It also wants the court to permanently ban Amazon from charging parents for in-app purchases without their consent. Amazon, whose chief executive Jeffrey Bezos owns The Washington Post, did not immediately respond to a request for comment.

The FTC alleges that beginning in November 2011, Amazon violated the FTC Act by billing parents for charges incurred by their children without permission. Amazon's Kindle Fire tablet was used by children to play games and spend "unlimited amounts of money" to pay for virtual items within the apps such as “coins,” “stars,” and “acorns” without parental involvement, the agency wrote. The FTC said that at first, no password requirements were put in place to stop children from making the purchases.

The massive cable and telecom mergers under review may just be the start of a broader wave of consolidation to hit the entertainment industry.

Rumors are rife that Time Warner is negotiating with Vice Media, the magazine-turned-media company now known for producing edgy documentaries that air on HBO. Viacom could rejoin CBS, which it split from nearly a decade ago. Univision may be seeking a buyer and has been in talks with Time Warner and CBS, according to the Wall Street Journal.

Some lawmakers and analysts say it's inevitable that television programmers will bulk up to stand up against demands from increasingly powerful cable and telecom distributors like Comcast who want to lower their costs for programming.

Like many popular television programs, online viewing is still only available to those who can prove they also subscribe to cable or satellite television bundles of channels.

That's true for many sports programs and HBO hits such as "Game of Thrones."

But increasingly, consumers are finding ways to defy the requirements of cable companies. And a niche industry has emerged offering software that helps consumers cut the cable cord but still get the content they want online. “Tired of cable? Cut the cord! Learn how to watch LIVE sports without cable here," software company Ghost Path VPN marketed on its blog and through tweets and messages on Facebook.

Through a simple software download, consumers can create virtual private networks that mask or change one's location. The VPN services have also become popular for consumers seeking privacy and security against hackers.

The use of VPNs to watch sports programs do not violate copyright laws, according to John Bergmeyer, a staff attorney at Public Knowledge. But ESPN or other networks with distribution rights to the programs could determine that use of "geo-blocking" services like VPNs violate their terms of service, he said.

It's become a cliché: "Why am I forced to buy more cable channels I never watch?"

Now, new data show the common consumer complaint is true.

In 2013, US cable subscribers got a record average of 189 channels in prepackaged bundles but watched only 17 of those channels, according to a report by Nielsen. And the appetite to view more channels, even when offered vastly more television content, hasn't changed much in years.

In five years, cable companies added 60 more channels for the typical subscriber, but viewers haven't increased their consumption of new content. They have consistently watched an average of 17 channels.

"This data is significant in that it substantiates the notion that more content does not necessarily equate to more channel consumption," the Nielsen report said. "And that means quality is imperative — for both content creators and advertisers. So the best way to reach consumers in a world with myriad options is to be the best option."

Sen Al Franken (D-MN) has become Capitol Hill's loudest opponent of Comcast's bid for Time Warner Cable. Now, he's trying to root out like-minded critics from Silicon Valley.

In a letter to the trade group Computer & Communications Industry Association, Sen Franken asked for the group's opinion on the $45 billion merger. If approved by federal regulators, Comcast would wind up with 40 percent of the broadband Internet market. Sen Franken said that's too much power in the hands of a single company, which could act as a powerful gatekeeper for Internet content and services into US homes.

"Your organization includes companies from many sectors of our communications and Internet economy, including industry leaders in search, social networking, e-commerce and music and video content delivery. All of these organizations depend on broadband networks to operate," Sen Franken wrote in his letter to CCIA President Ed Black. CCIA's members include Google, Facebook, eBay, Aereo and Yahoo.

Wireless industry lobbying group CTIA named Meredith Attwell Baker as its new president, another remarkable appointment for the former member of the Federal Communications Commission who has quickly climbed the ranks of a private sector she once regulated.

Baker will begin her new job June 2, after nearly three years as a high-level lobbyist for Comcast, where she promoted issues favorable for the cable giant. Public interest groups had criticized her move from the FCC to Comcast soon after she voted in favor of the cable company's merger with NBC Universal.

Critics said that Baker's move to the cable firm highlighted a revolving door between the FCC and the companies they regulate and raised potential conflicts of interests. Former FCC chairman Michael Powell now heads the National Cable & Telecommunications Association.

At the CTIA, Baker will head the vast lobbying organization for wireless firms ahead of a historic auction of public airwaves in 2015. The group's biggest members -- AT&T, Verizon Wireless, T-Mobile and Sprint -- represent the fastest-growing segments of the telecom industry.

Baker will replace Steve Largent, who reportedly had a salary of about $2.7 million in 2013.

For federal regulators, words really matter. An adjective too bold, a verb misconjugated or a particle dropped can ripple across the business world and send stock markets into chaos. That’s why leaders of government agencies so rarely speak in public -- and generally do so with great care. Not Tom Wheeler, the dauntless and plain-spoken chairman of the Federal Communications Commission, who has displayed a rare joy for gab.

“I’m not sitting here sucking eggs,” Chairman Wheeler said at his first public meeting in November, a warning shot of what was to come. “I’m looking seriously at these issues.”

Such candor has defied early assumptions about President Barack Obama’s FCC pick as a lame duck. The 68-year-old has eagerly grasped a national megaphone on the defining -- and the utterly arcane -- telecommunications policy issues of the day.

In coming months, he faces the biggest test of his promise to put consumers first, deciding whether to approve the merger of two of corporate America’s least-popular companies: cable titans Comcast and Time Warner Cable. It will be hard to please all sides with bigger and more controversial decisions ahead:

• He will make the call on Comcast’s $45 billion bid for Time Warner Cable, a deal that would create the first national cable company and a broadband Internet titan with 40 percent of the market share.
• His net neutrality proposal rankled consumer advocates, who say it could allow the richest Web companies to buy better access to users.
• He will launch the biggest sale of television airwaves in years, an auction that could dramatically shrink local broadcasting and determine the dominant providers of mobile services for years to come.

His folksy idioms and direct Midwestern sensibility have won many friends in Congress, the FCC and at the top levels of corporate America. And Chairman Wheeler is unapologetic about the decades he spent leading the National Cable & Telecommunications Association and the CTIA wireless group and then as a venture capitalist with telecom, Internet and broadcast industry investments. Indeed, as he sees it, his lobbying skills are key to his management of the FCC -- a notion that might make others cringe. “This is a job that I’ve been training for my entire professional life,” Chairman Wheeler said.

Back9Network, a golf lifestyle cable channel, fears that the merger between Comcast and Time Warner could spell the end of its business.

The remarks by the CEO of the independent programming firm were made during a Senate Judiciary hearing on the proposed $45 billion cable and Internet mega merger.

James Bosworth, chief executive of the Hartford-based network, told lawmakers that for an independent programmer to succeed, it needs its channel to be carried by one of the big four paid television providers: Comcast, Time Warner Cable, Dish or Direct TV.