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In testimony prepared for a June 18 nomination hearing, Federal Communications Commission chair nominee Tom Wheeler says that his business experience will make him a better chairman, that that experience has taught him that competition is a basic value that must be encouraged and that competition is not always sufficient to protect other basic values, like universal service and the use of technology to enhance public safety and services. But his policy background will also come in handy. "I have seen the important role that policy can play - as either a boon to growth or a brake on innovation." "Universal service is a key tenet of the Telecommunications Act. We did this for electricity and basic telephone service; we can do it for broadband," he says.
Wheeler: Competition Is Basic Value, But Sometimes Insufficient
Sprint Nextel has filed a lawsuit against Dish Network and Clearwire in an effort to block the satellite-TV provider's tender offer for Clearwire.
Sprint, which is Clearwire's majority owner, said Dish's tender offer violates corporate law in the state of Delaware, where Clearwire is incorporated. Sprint also said the offer violates the rights of both Sprint and Clearwire's other strategic investors under Clearwire's charter and under previous shareholder agreements. Sprint in its complaint said that under Clearwire's charter and equity holders agreement, Dish's tender offer can't be completed without the approval of holders of at least 75% of Clearwire's outstanding voting securities, nor without the approval of Comcast. Sprint added Dish's tender offer is "unlawfully coercive because it threatens to leave non-tendering shareholders holding shares in a company subject to governance deadlocks or substantial damage awards to Dish" if Clearwire is unable to deliver on promises set forth in its investor rights agreement and a related note purchase agreement.
Sprint Files Lawsuit Against Dish, Clearwire to Block Tender Offer Sprint files lawsuit against Dish and Clearwire (LATimes) A jilted Sprint sues Dish, claiming its offer for Clearwire is illegal (GigaOm) Sprint Sues Dish Seeking to Block Clearwire Acquisition (Bloomberg)
Clearwire has long been the U.S. wireless industry's most embattled carrier. In recent months, the money-losing company has also emerged as its crown jewel.
The company, which covers less than half the U.S. population with high-speed mobile Internet service, has teetered on the brink of bankruptcy. Now, both Dish Network and SoftBank are showing keen interest in Clearwire's huge stockpile of spectrum even as they battle for control of Sprint Nextel, a majority owner of Clearwire. The spectrum has become a prized asset thanks to a sea change in how people use their mobile devices. Without it, Dish and Softbank's opportunities to offer a new slate of wireless services could be limited. Rather than using the Clearwire spectrum to build a national network, SoftBank and Dish have said they would use the company's spectrum to provide additional capacity in areas where data use is highest. In dense areas, the fact that signals on Clearwire's spectrum don't travel very far isn't as much of a disadvantage, while the large amount of spectrum that Clearwire controls means it can carry a large amount of traffic.
How Clearwire Became the Darling of Telecom
The Internal Revenue Service (IRS) could do more to inform taxpayers dabbling in virtual currencies that their activities could be taxable, according to a new Government Accountability Office (GAO) report.
The GAO concludes that while the world of virtual currencies like bitcoins was rapidly changing, the IRS could do more to provide basic, informal information to taxpayers about how their online activities could result in a real-world tax bill. "The fact that misinformation is circulating and the possibility of growth in the use of virtual currencies outside virtual economies suggest that it would be prudent to take low-cost steps, if available, to mitigate potential compliance risks," the report states. The report was done at the behest of the Senate Finance Committee, which asked GAO to review virtual economies and the currencies they use for any potential tax issues and how the IRS might address them.
GAO: IRS needs to keep an eye on virtual currencies Virtual Economies and Currencies (GAO)
Davis Polk & Wardwell has hired Jon Leibowitz, the former chairman of the Federal Trade Commission, a coup for the law firm as it bolsters its increasing presence in Washington.
Davis Polk, which is based in New York, plans to use Leibowitz’s expertise to advise its corporate clients on competition issues related to mergers and acquisition transactions, as well as to counsel companies in the burgeoning area of privacy law. Leibowitz raises the firm’s already considerable profile in Washington at a time when government policy affecting corporate America is increasing. As outside counsel for several of the country’s largest banks, for instance, Davis Polk has played a significant role in helping shape the new rules emerging from the 2010 Dodd-Frank Wall Street overhaul law. In the enforcement area, Annette L. Nazareth, a former commissioner at the Securities and Exchange Commission, and Linda Chatman Thomsen, a former S.E.C. enforcement chief, are Davis Polk partners. Leibowitz is the latest in a string of senior government antitrust lawyers who have departed for private practice after serving in major posts during President Obama’s first term.
Former Chairman of the FTC Is Set to Join Davis Polk
Germany's biggest cable operator Kabel Deutschland confirmed it has received a proposal to be acquired by Liberty Global, potentially creating a bidding feud between John Malone's international cable company and Vodafone Group.
Kabel Deutschland earlier this month rejected an informal proposal from Vodafone as too low. Vodafone may make another offer for the company. Vodafone had been expected to spend at least $8.3 billion bidding for Kabel Deutschland. Liberty Global owns a collection of broadband networks in more than a dozen countries, and a purchase of Kabel Deutschland would put Liberty Global in a strong position in Germany. Liberty is already a major cable operator in Germany, having acquired Unitymedia, Germany's second largest cable company, for more than $3 billion plus the assumption of debt in 2009.
Liberty Global in Talks to Buy German Cable Firm Liberty Global enters bidding race for Kabel Deutschland (FT)
Federal regulators are unveiling draft rules to make cable and television menus accessible to the blind and visually impaired.
The proposal from the Federal Communications Commission (FCC) will require that users have an option have onscreen menus read out loud, helping the blind understand what's playing on different channels. Cable and satellite menus, as well as other devices, will have to comply with the new rule once it is finalized. The new proposal requires that 11 "essential functions" of TV are accessible, including adjusting volume, obtaining program and channel information and various configuration settings. The proposal is the FCC's last in a series of new rules to implement the 21st Century Communications and Video Accessibility Act (CVAA), a 2010 law. The agency had previously issued rules making cellphones' Internet browsers and emergency TV alerts accessible to blind people, among other measures.
FCC proposes making TV menus accessible to blind
Google has settled a shareholder lawsuit to clear the way for a long-delayed split of the company’s stock. The agreement resolves allegations that Google co-founders Larry Page and Sergey Brin engineered the stock split in a way that unfairly benefits them and shortchanges the rest of the company's shareholders. The settlement will require Google to compensate owners of the new class of if stock if it's worth less than the existing class of stock after one year of trading.
Google settles suit, clears way for stock split
Federal Trade Commission Chairwoman Edith Ramirez has named seven senior staff members.
- Deborah L. Feinstein, who will serve as Director of the Bureau of Competition, joins the agency from Arnold & Porter, where she was a partner and Chair of the Antitrust Practice Group, with a focus on merger and acquisition matters, and conduct investigations. Among many accolades bestowed upon Feinstein, Global Competition Review named her global “Lawyer of the Year” for 2010. Feinstein began her career at Arnold & Porter and joined the FTC in 1989. She served as an Assistant to former Bureau of Competition Director Kevin Arquit and as an Attorney Advisor to former Commissioner Dennis Yao. She is an honors graduate of Harvard Law School and the University of California at Berkeley.
- Jessica Rich has been appointed Director of the Bureau of Consumer Protection, having served as Associate Director in charge of the Division of Financial Practices since January 2012. Rich was a Deputy Director of the Bureau from November 2009 to January 2012. In addition, she has served as the Acting Associate Director and Assistant Director of the Bureau’s Division of Privacy and Identity Protection, Assistant Director in the Division of Financial Practices, and counselor to the Bureau Director. She joined the FTC as a staff attorney more than 20 years ago, after starting her career in private practice in New York City. She is a graduate of New York University Law School and Harvard University.
- Jonathan E. Nuechterlein will serve as General Counsel. He joins the agency from Wilmer Cutler Pickering Hale & Dorr, where he was a partner and Chair of the Communications, Privacy, and Internet Law Practice Group. He previously was Deputy General Counsel for the Federal Communications Commission and an Assistant to the Solicitor General at the U.S. Department of Justice. Nuechterlein also clerked for U.S. Supreme Court Justice David H. Souter and U.S. Court of Appeals Judge Stephen F. Williams. He is a graduate of Yale Law School and Yale College.
- Andrew I. Gavil will continue as Director of Policy Planning, having joined the Commission in September 2012. A professor at Howard University School of Law, he has written and spoken extensively in the U.S. and abroad on various aspects of antitrust law, policy, jurisdiction, and procedure. He is a graduate of Northwestern University School of Law and Queens College, CUNY.
- Randolph W. Tritell will continue as Director of the Office of International Affairs, previously having led the FTC’s International Antitrust Division. He was formerly a staff attorney in the Bureau of Consumer Protection, Assistant to the Director of the Bureau, Attorney Advisor to former Commissioner Terry Calvani, and Executive Assistant to the Chairman. A former Weil, Gotshal & Manges partner, Tritell is a graduate of the University of Pennsylvania Law School and an honors graduate of the State University of New York at Stony Brook.
- Jeanne Bumpus will continue to serve as Director of the Office of Congressional Relations. She previously was a principal advisor to Arizona Senator John McCain and served as Staff Director and Chief Counsel for the U.S. Senate Committee on Commerce, Science, and Transportation. Bumpus was formerly Legislative Counsel to Washington State Senator Slade Gorton. She is a graduate of the University of California Berkeley School of Law and the University of California, San Diego.
- Heather Hippsley serves as Chief of Staff to the Chairwoman. Before starting her new role, Hippsley was Assistant Director for the Division of Advertising Practices for more than 10 years. She previously has served as Acting Deputy Director for the Bureau of Consumer Protection, Acting Associate Director for the Division of Advertising Practices, Assistant Director in the Division of Enforcement, and an Attorney Advisor to former FTC Commissioners Dennis A. Yao and Andrew J. Strenio, Jr. Hippsley is an honors graduate of Lewis and Clark School of Law and Georgetown University.
FTC Chairwoman Edith Ramirez Names Senior Staff
In a filing at the Federal Communications Commission, Sinclair says it may be a buyer in the broadcast spectrum incentive auctions, if the FCC would allow for higher-power wireless licenses that could be used to deliver advanced wireless services.
Sinclair said that the FCC should allow for higher-power wireless licenses in at least half of the spectrum reclaimed from broadcasters in a reverse spectrum auction. And though Sinclair has said it has no plans to sell its TV spectrum in that auction, it suggests it could be a buyer in the forward auction if the FCC gets the band plan right. Sinclair would be prepared to bid aggressively on 50 kW TDD (Time Division Duplex) licenses (the higher-powered wireless licenses) divided into economic areas or, similarly, granular geographic sizes, and to deploy new and innovative services that would expand the wireless ecosystem.
Sinclair Says It Could Be Buyer in Spectrum Auctions