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Softbank’s potential bid for a majority stake in Sprint Nextel is seen by lawyers and analysts as one that will probably face, and survive, reviews by U.S. national security and antitrust officials.
“Softbank stepping into Sprint’s shoes raises no antitrust issues, it doesn’t affect competition, it’s pro-competitive,” said Allen Grunes, an antitrust lawyer with Brownstein Hyatt Farber Schreck LLP in Washington. “If the deal goes forward, it’s likely to get a speedy review by the Justice Department.” The transaction may even be welcomed by regulators at the Justice Department and the Federal Communications Commission because it could bolster Sprint’s ability to compete in a mobile market dominated by AT&T and Verizon Wireless, Jeffrey Silva, a Washington-based analyst with Medley Global Advisors LLC, said. “Federal regulators would like to see a stronger Sprint,” Silva said.
Softbank’s Sprint Bid Seen Surviving U.S. Review
A potential Softbank-Sprint could create an operator financially strong enough to eventually bid for the assets T- Mobile USA is trying to combine with MetroPCS.
“If Sprint gets a financially strong partner, that would increase the probability of an eventual bid for the joint package of T-Mobile USA and MetroPCS,” creating a strong No. 3 carrier, said Landesbank Baden-Wuerttemberg analyst Stefan Borscheid. “The market would like to see Deutsche Telekom eventually exiting the U.S. at a premium.”
Softbank-Sprint Deal Seen Presaging Deutsche Telekom Exit
The Federal Communications Commission’s Wireline Competition Bureau provides guidance to Eligible Telecommunications Carriers (ETCs) and state administrators regarding compliance with the one-per-household rule adopted in the Lifeline Reform Order, and reminds ETCs of their ongoing duty to prevent and eliminate duplicative support.
In the Lifeline Reform Order, the FCC codified a rule that eligible consumers can only receive one Lifeline-supported service per household. To comply with the one-per-household rule, each ETC has an ongoing duty to ensure that it provides support to only one subscriber per household. An ETC may not serve more than one person at an address without obtaining the required certifications. Consistent with the one-per-household rule, once an ETC determines through an examination of its records that it is providing Lifeline supported service to multiple subscribers at a single address, the ETC must provide each subscriber at that address with a one-per-household worksheet. The ETC must also inform the subscriber that he or she has 30 days to respond and provide the requested information, or the subscriber will be de-enrolled. The ETC must de-enroll a subscriber that fails to attest that the subscriber is a member of a separate household at the address or fails to return the one-per-household worksheet.
FCC Reminds Eligible Telecommunications Carriers Of Their Obligation To Eliminate Duplicative Lifeline Support
In the Lifeline Reform Order, the Federal Communications Commission required Eligible Telecommunications Carriers (ETCs) and, where applicable, state Lifeline administrators, another state agency or an agent of the state (collectively, “state agency”) to re-certify the eligibility of the base of their subscribers as of June 1, 2012.
Each subscriber must be re-certified by December 31, 2012, and the ETC must report the results to the Commission, the Universal Service Administrative Company (USAC), and to states and Tribal governments (where appropriate), by January 31, 2013. In this public notice, the Wireline Competition Bureau (Bureau) reminds parties of their obligations and provides guidance to ETCs and state agencies regarding the Lifeline re-certification requirements in 2012 and the annual re-certification reporting process in subsequent years.
FCC Reminds Carriers that they Must Recertify Eligibility of All Lifeline Subscribers by December 31, 2012
The Federal Communications Commission’s Wireline Competition Bureau provides guidance to states regarding the process of opting out of the National Lifeline Accountability Database established in the Lifeline Reform Order.
Pursuant to the Order, if a state or state regulatory authority intends to opt out of the Database, it is required to make a one-time request by November 1, 2012 that the state has a comprehensive system in place to check for duplicative Lifeline support. The FCC now provides a limited waiver, until December 1, 2012, of the date by which states must file their opt-out request, to enable states to take into account the guidance provided in this public notice regarding the showing that a state must make in order to opt out of the database. Any state which has already filed a request with the Commission may amend the request, or withdraw its request and re-file without prejudice.
FCC Clarifies Minimum Requirements for States Seeking to Opt Out of National Lifeline Accountability Database
In this Notice of Proposed Rulemaking (NPRM), the Federal Communications Commission proposes changes to the criteria under which it considers certain applications from foreign carriers or affiliates of foreign carriers for entry into the U.S. market for international telecommunications services and facilities. Specifically, the FCC proposes to eliminate, or, in the alternative, simplify the effective competitive opportunities test (ECO Test) that applies to FCC review of international section 214 authority applications filed by foreign carriers or their affiliates. If we maintain the ECO Test, we also propose to codify in our rules the ECO Test criteria that would apply to cable landing license applications filed by foreign carriers or entities, or their affiliates, and notifications of foreign carrier affiliations filed by U.S. cable landing licensees.
Reform of Rules and Policies on Foreign Carrier Entry Into the U.S. Telecommunications Market
Republican members of the House of Representatives and Senate urged President Barack Obama to refrain from issuing an executive order exerting regulatory influence over the Internet in the name of cybersecurity. The members expressed concern that using executive power to regulate the Internet would bolster the arguments being made by nations such as Russia, China, and Iran that are seeking global government control and undermine the United States’ position to continue the current multistakeholder governance model which has allowed the Internet to flourish.
Both the House and Senate have unanimously approved resolutions that oppose such attempts to exert regulatory control over the Internet. The bicameral leaders are also concerned that a top-down approach to cybersecurity will slow the response and impose unnecessary costs on the economy. They write: “An executive order exerting influence over critical infrastructure is not just a step in the wrong substantive direction. It will almost certainly be exploited by other nations to justify their efforts to regulate the Internet. This is a most critical time, and we cannot afford a hasty, unilateral action that will only serve to bolster the efforts of less democratic nations to stifle the very free exchange of ideas and expression that has allowed the Internet to flourish across the globe. For these reasons, we urge you to rethink the wisdom of an executive order.”
House and Senate Republicans Urge President to Rethink Issuing Cybersecurity Executive Order GOP members to White House: Cyber order would hurt Internet freedom (The Hill)
Republican members on the House Commerce Committee requested information from the Federal Energy Regulatory Commission regarding the establishment of its new Office of Energy Infrastructure Security (OEIS).
Members wrote to FERC Chairman Jon Wellinghoff seeking answers regarding FERC’s statutory authority and OEIS’ jurisdiction, funding, and responsibilities. The members wrote: “The protection of the nation’s critical infrastructure, including those facilities subject to FERC jurisdiction, such as the bulk-power system, pipelines, and hydropower facilities, is vital to the country’s economic well-being and the safety and security of our citizens. The Committee on Energy and Commerce, in its oversight role, continues to assess the critical infrastructure planning and protection efforts of the appropriate federal agencies, oversee the protection, mitigation and resiliency efforts of private asset owners, and evaluate opportunities to better secure critical infrastructure, such as through improved information sharing.”
House Commerce Committee Leaders Continue Working to Protect Nation's Critical Infrastructure from Growing Cyber Threats
Internet ad revenue may have reached $17 billion in the first half of the year, according to the Interactive Advertising Bureau, but the rate of growth declined between 2011 and 2012.
The industry association said online ad revenue in 2012 climbed 14 percent, from $14.9 billion in the first six months of 2011. But between the first half 2010 and the first half of 2011, revenue increased 23 percent, indicating softening growth. Mobile continues to be a big gainer, with spending nearly doubling from $636 million in the first half of 2011 to $1.2 billion in the same period this year. But though it’s seen as a new revenue source and diver of overall growth it remains a relatively small piece (7 percent) of the overall online ad spending pie. Among all categories of online advertising, search leads with 48 percent of the spending ($8.1 billion), followed by display with 33 percent ($5.6 billion).
Internet advertisers still a growth business, but pace slows
Verizon Wireless is no hurry to sunset its 2G and 3G networks even though data traffic is moving over to LTE at a dramatic pace. At CTIA MobileCon, FierceWireless pinned down Verizon VP of M2M global strategy, Aparna Khurjekar, on an exact date. Her response: 2021.
Why isn’t Verizon in a hurry to cannibalize its older technologies as well? For one, Verizon is in the best 4G LTE position of all of the Big 4 operators. After scooping up a bunch of 4G licenses from the cable companies, Big Red has the airwaves to launch a new nationwide LTE network parallel to the one its already deployed. Also, even if Verizon doesn’t shut down 2G and 3G sites for another nine years, there’s nothing stopping it from whittling away at them.
When will Verizon shutter its CDMA networks? 2021, maybe