FCC LAUNCHES INQUIRY INTO BROADBAND MARKET PRACTICES
[SOURCE: Federal Communications Commission]
The FCC began an inquiry to better understand the behavior of participants in the market for broadband services. The Notice of Inquiry seeks information on the behavior of broadband market participants, including: How broadband providers are managing Internet traffic on their networks today; Whether providers charge different prices for different speeds or capacities of service; Whether our policies should distinguish between content providers that charge end users for access to content and those that do not; and How consumers are affected by these practices. The Notice of Inquiry further seeks comment on whether the Commission's 2005 Internet Policy Statement should incorporate a new principle of nondiscrimination and, if so, how would "nondiscrimination" be defined, and how would such a principle read. FCC Chairman Kevin Martin said that the notice of inquiry will allow the FCC to collect evidence of abuses and information about business practices on the Internet for the public record. This data will foster a more informed debate, he said. Commissioners Michael Copps and Jonathan Adelstein said they supported the measure, but expressed disappointment in the FCC for not doing more. Commissioner Copps said stronger action is needed as the telecommunications market consolidates and market power is concentrated among only a few large players. He said the FCC should add another principle to its Internet policy statement that incorporates a new principle of nondiscrimination. "It is time for us to go beyond the original four principles and commit (the) industry and the FCC unequivocally to a specific principle of enforceable nondiscrimination, one that allows for reasonable network management but makes clear that broadband network providers will not be allowed to shackle the promise of the Internet in its adolescence," Copps said.
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-271687A1.doc
* FCC to study need for more Net neutrality regulation
http://news.com.com/FCC+to+study+need+for+more+Net+neutrality+regulation...
* FCC Opens Net Neutrality Inquiry to Public
http://www.broadcastingcable.com/article/CA6426877?title=Article&spacede...
* U.S. FCC to examine future of Internet access
http://today.reuters.com/news/newsarticle.aspx?type=technologyNews&story...
* FCC Inquiry to Focus On 'Network Neutrality'
http://online.wsj.com/article/SB117457543787745524.html?mod=todays_us_ma...
FCC Chairman Martin: "This inquiry will provide a convenient forum for various providers, including network and content providers, to tell us what is happening in the market and about their concerns. For example, we seek comment on how broadband providers are managing their Internet traffic, whether certain traffic is prioritized, and whether our policies should distinguish between content providers that charge end users for access to content and those that do not. Gathering this information will allow us to better monitor this market and determine the extent to which providers are acting consistently with our Internet Policy Statement. The Commission is ready, willing, and able to step in if necessary. We have the dual responsibilities of creating an environment that promotes infrastructure investment and broadband deployment and to ensure that consumers' access to content on the Internet is protected. We can best fulfill these responsibilities by being fully informed."
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-271687A2.doc
* Commissioner Copps:
"We live in a world where a very few concentrated broadband providers exercise powerful and not always consumer-friendly control over the pipes that come into our homes and businesses. While we welcome telephone companies and cable providers competing to sell high-speed services, FCC statistics show that together these duopoly operators control some 96 percent of the residential broadband market, with too many consumers lacking a choice even between those two providers. Wireless and broadband over powerline are exciting prospects, but the reality is we are nowhere near seeing the kind of ubiquitous third or fourth player necessary to turn broadband into a vibrantly competitive market."
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-271687A3.doc
* Commissioner Adelstein:
The Inventor of the World Wide Web, Sir Tim Berners Lee, has said: “The Internet is increasingly becoming the dominant medium binding us. The neutral communications medium is essential to our society. It is the basis of a fair competitive market economy. It is the basis of democracy, by which a community should decide what to do. It is the basis of science, by which human kind should decide what it true.†His eloquent observation highlights precisely why it is so critical that we maintain the potential and promise that the Internet holds for enriching our economic and social well-being. I support this effort to open a proceeding because it is critical that the Commission focus a spotlight on this issue. Nevertheless, given the importance of Internet freedom, I would have preferred a more pro-active approach, including the adoption of a Notice of Proposed Rulemaking. This Commission must not send a signal that preserving the open character of the Internet is anything less than a top priority.
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-271687A4.doc
* Commissioner Tate:
The debate over broadband network practices has been percolating under several names in recent years – “net freedoms,†“connectivity principles,†“Internet policy,†and, of course, “net neutrality.†Whatever one chooses to call it, I prefer to try to view this issue from the perspective of consumers. The previous Commission did so in its Policy Statement and I hope it will continue to do so. While it remains important for us to understand the industry structure and the relationships between each of the different elements in the market, we must ensure that our policies promote, not deter, investment, innovation, and new entry in networks, products, and services that will help America remain competitive in the increasingly global economy.
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-271687A5.doc
* Commissioner McDowell:
I agree with my colleagues that we must remain vigilant against possible market failure or anti-competitive conduct that would hamper the full development of the Internet and related services being provided to consumers. But we also must resist the temptation to impose regulations that are based merely on theory.
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-271687A6.doc
* Public Knowledge Disappointed with FCC Broadband Notice of Inquiry
Gigi Sohn: "While we welcome the FCC’s interest in maintaining an open Internet, we are disappointed that the Commission chose to issue a simple Notice of Inquiry. This bureaucratic process will delay by months if not years the crucial action needed to guarantee that consumers will always have access to an open and non-discriminatory Internet — assuming that it issues a proposed rule after evaluating the information it receives from the inquiry."
http://www.publicknowledge.org/node/881
* FCC Takes (Passive) Aggressive Action on Net Neutrality
http://www.publicknowledge.org/node/882
FCC CLASSIFIES WIRELESS BROADBAND INTERNET ACCESS SERVICE AS AN INFORMATION SERVICE
[SOURCE: Federal Communications Commission]
The FCC declared that wireless broadband Internet access service is an information service under the Communications Act (Act). This action places wireless broadband Internet access service on the same regulatory footing as other broadband services, such as cable modem service, wireline broadband (DSL) Internet access service, and Broadband over Power Line (BPL)-enabled Internet access service. It thus ensures, the FCC said, that wireless broadband Internet access services are similarly free from unnecessary regulatory burdens. Competition among all of these broadband services will provide consumers with more and better services at lower prices. Wireless broadband Internet access service is defined in today's Ruling as a service that uses spectrum, wireless facilities, and wireless technologies to provide subscribers with high speed Internet access capabilities. Wireless broadband Internet access service can be provided using mobile, portable, or fixed technologies, and wireless broadband technologies can transmit data over short, medium, or long ranges.
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-271695A1.doc
* FCC Classifies Wireless Broadband as Information Service
http://www.broadcastingcable.com/article/CA6426867?title=Article&spacede...
* FCC eases wireless Web rules
http://www.latimes.com/business/printedition/la-fi-fcc23mar23,1,3402392....
* Chairman Martin:
Today’s ruling highlights that the broadband market today is increasingly characterized by multiple platforms that are vigorously competing for customers. Wireless service is becoming increasingly important as another platform to compete with cable and DSL as a provider of broadband. I have long believed that the Commission should focus on creating a regulatory environment that promotes investment and competition by minimizing economic regulation. In addition, the Commission must set the rules of the road so that players can compete on a level playing field. In other words, all providers of the same service should be treated in the same manner regardless of the technology that they employ.
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-271695A2.doc
* Commissioner Copps:
I concur in today’s decision not because I like it. Not because I think it’s the right thing to do. But because in light of the Commission’s post-Brand X decisions, today’s outcome has long been inevitable. I nevertheless want to reiterate my view that consigning broadband services to an indeterminate Title I regulatory limbo is no substitute for a genuine national broadband strategy. It doesn’t give either businesses or consumers the kind of certainty that they are entitled to. And I simply cannot accept, when the stakes are so high, that deferring difficult decisions—rather than actually making them—constitutes a responsible regulatory framework.
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-271695A3.doc
* Commissioner Adelstein:
Now that we have put these providers on similar footing, it is high time to turn to protecting consumers in the broadband age. In fact, it is frustrating that the Commission is able to generate yet another reclassification item while the Broadband Consumer Protection Notice that we adopted over 18 months ago, and that will form the centerpiece of our consumer protection policies in this new framework, remains pending. Instead, we are devoting resources to an item that was not even specifically teed up by an interested party nor put out for public comment. Of course, some might say it is a lot easier to generate an item quickly when there is no record to consider. Perhaps the handwriting was on the wall, with no nuance to consider. But looking at the strained legal analysis in this item and the questions left unanswered, it is hard to see how specific public input would not have benefited this item.
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-271695A4.doc
* Commissioner Tate:
Today, we continue down the path of deregulation as we move forward to ensure that the benefits of the new Digital Age accrue to all Americans.
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-271695A5.doc
* Commissioner McDowell
All market players deserve the certainty and regulatory even-handedness necessary to spark investment, speed competition, empower consumers, and make America a stronger player in the global economy.
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-271695A6.doc
* Statement in response to Wireless Broadband Declaratory Ruling:
Harold Feld: “If the Commission genuinely wants to ‘standardize treatment of broadband services across platforms,’ it must require wireless services to allow subscribers to attach any device to its network. Media Access Project fully supports Commissioner Copp’s call for a Notice of Proposed Rulemaking to apply the Cartefone principles and the Commission’s network attachment rules to wireless networks.â€
http://www.mediaaccess.org/press/MAP%20Statement%20on%20Wireless%20Rulin...
FCC ADOPTS RULES FOR DIGITAL AUDIO BROADCASTING
[SOURCE: Federal Communications Commission]
The FCC adopted a 2nd report and Order on Digital Audio Radio (digital radio to you and me). In the Order, the Commission: Refrains from imposing a mandatory conversion schedule for radio stations to commence digital broadcast operations; Allows FM radio stations to operate in the extended hybrid digital mode; Requires that each local radio station broadcasting in digital mode to simulcast a digital signal of at least comparable audio quality to its analog signal; Adopts a flexible bandwidth policy permitting a radio station to transmit high quality audio, multiple program streams, and data casting services at its discretion; Allows radio stations to time broker unused digital bandwidth to third parties, subject to certain regulatory requirements; Applies existing programming and operational statutory and regulatory requirements to all free DAB programming streams; Authorizes AM nighttime operations; Dismisses several pending Petitions for Reconsideration and Petitions for Rulemaking that asked, inter alia, the Commission to reconsider the adoption of iBiquity's in-band, on-channel (IBOC) system as the technology chosen for DAB transmission; Seeks further comment on appropriate limits to the amount of subscription services that may be offered by radio stations; and Seeks comment on whether the Commission should adopt any new public interest requirements for digital audio broadcasters.
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-271699A1.doc
* FCC Gives OK To Digital Audio Broadcasting
http://www.broadcastingcable.com/article/CA6427038?title=Article&spacede...
* Chairman Martin:
Today’s action by the Commission will promote radio’s transition from the analog world to the digital one. Much like it does in television, this transition presents radio stations the opportunity to multicast. Multicasting will enable radio stations to provide a greater amount and greater variety of free programming to consumers. This order also confirms that digital radio stations are subject to the same public interest obligations as analog radio stations. Every obligation broadcasters have in the analog world must continue in the digital world. These include requirements that broadcasters air programming about the significant issues facing their local communities, provide emergency alerts and make emergency information accessible to those with disabilities, and follow extensive requirements governing political advertising.... Today, the Commission also adopts a Second Further Notice of Proposed Rulemaking that seeks comment on whether we should adopt any new public interest requirements for digital audio broadcasters. While radio broadcasters are not subject to children’s programming requirements, they too must maintain public files and information about their efforts to serve the public. I support modifying their disclosure obligations too to ensure that the public has more and better information about these efforts. I am pleased that the Notice seeks comment on this specific issue of enhanced disclosure.
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-271699A2.doc
* Commissioner Copps
Digital broadcasting has the power to reconfigure the communications landscape in good and powerful ways—if we get our policies right. If we get our policies right, we can ensure that digital radio enhances localism and that it translates into more locally originated programming, public affairs coverage and airtime for local musicians and creative artists. If we get our policies right, we can ensure that digital radio enhances diversity through a wider range of programs, viewpoints and new opportunities for underserved and non-English speaking communities. If we get our policies right, we can give real meaning to public interest broadcasting in the digital age.
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-271699A3.doc
* Commissioner Adelstein:
After years of ignoring the issue, punting the question, and delaying a constructive dialogue to develop meaningful solutions, it is really disappointing that the Commission has once again failed to step up to the plate. There is no justification for the Commission’s outright refusal to “encourage digital audio broadcasters to enter into time brokerage agreements with women and minority broadcasters or new entrants.†It is not asking a lot for us to simply encourage positive action, but apparently it was too much for a majority of the Commission.
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-271699A4.doc
* Commissioner Tate:
"[W]e allow the market to determine the pace of the transition and the stations to determine how to use their digital bandwidth. The flexibility to offer multicast programming of all kinds, develop varied datacasting applications, and enter into time brokerage agreements for digital bandwidth will unleash the creativity of the market and, hopefully, provide opportunities to new entrants, resulting in improved radio service for all Americans."
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-271699A5.doc
* Commissioner McDowell
[W]e should evaluate several issues, including the current and future public interest obligations of radio stations and appropriate treatment of subscription-based radio services, at a later time. Keep in mind that existing public interest obligations that currently apply to broadcasters also apply to their new multicast streams. My hypothesis is that the proper course now is to allow these nascent digital radio services to develop in the marketplace without heaping additional regulations upon them. But I will read the public’s comments with great interest.
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-271699A6.doc
* MAP Disappointed With FCC Digital Radio Order
Parul Desai: "The transition to digital radio, which will provide additional streams for programming and other services, presents an opportunity and platform for new and diverse voices and greater service to the public. It is unfortunate that the Commission majority refused to include even a word of official encouragement to broadcasters to voluntarily address the lack of independent programming, especially that created by women and people of color. As Commissioners Copps and Adelstein warned, the Commission’s work remains unfinished. Today's item leaves to a later date specific public interest obligations. Hopefully, the recognition of the current state of radio will guide the Commission as it resolves the proposed NPRM. While not a complete solution to the lack of diverse voices and perspectives, the Commission must seize on this opportunity to increase the participation of minorities and females in radio broadcasting. The Commission must seize upon this opportunity to ensure that the public receives truly beneficial services and programming, as the public airwaves were intended to be used. Only then will digital radio live up to its full potential."
http://www.mediaaccess.org/press/MAP%20Statement%20on%20DAB%20Order.pdf
* NAB Statement:
David Rehr: "NAB applauds Chairman Martin and his FCC colleagues for taking a significant step today in advancing the already budding HD Radio technology. As HD Radio expands across America, we are hopeful the Commission recognizes the unique role played by local radio and the considerable public service contributions voluntarily made by stations within their communities."
http://www.nab.org/AM/Template.cfm?Section=News_Room&CONTENTID=8508&TEMP...
* NPR and NPR Member Stations Nationally Applaud FCC Approval of Digital HD Radio Multicasting
“Today’s action by the FCC has reinvigorated public radio’s public service mission,†said Arthur Timko, Station General Manager of 89.1 WEMU, Michigan’s first public station to make the digital transition and soon to be the first to officially multicast under the FCC’s approval.
http://www.npr.org/about/press/2007/032207.fcc.html
FCC INITIATES RULEMAKING TO EVALUATE ACCESS TO MULTIPLE DWELLING UNITS FOR VIDEO PROVIDERS
[SOURCE: Federal Communications Commission]
The FCC adopted a Notice of Proposed Rulemaking that seeks comment on issues relating to the use of exclusive contracts for the provision of video services to multiple dwelling units ("MDUs") or other real estate developments. With this proceeding, the Commission is taking another step to foster greater competition in the market for the delivery of multichannel video programming. In this Notice, the Commission seeks comment on the use of exclusive contracts in the MDU video provider marketplace and the impact of their use on the federal goals of enhanced multichannel video competition and accelerated broadband deployment.
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-271706A1.doc
* FCC Asserts Authority To Regulate Exclusive MDU Contracts
http://www.broadcastingcable.com/article/CA6426869?title=Article&spacede...
* FCC Looks to Void High-Rise Cable Contracts
http://www.multichannel.com/article/CA6427128.html?display=Breaking+News
* MAP Statement in response to FCC inside wiring NPRM
Harold Feld: "This action has the potential to bring the benefits of competition to millions of apartment renters, many of whom live in low-income neighborhoods. Hopefully, access to competing providers will lower costs and improve customer service for these communities. Landlords and incumbent monopolists have no right to collude to deny citizens the freedom to choose what they see, how they access the internet, and how they talk to one another. But as Commissioner McDowell made clear, the Commission must ensure that the freedom to choose extends to _all_ communications services – video, voice and data. If the final rule permits exclusive contracts in voice or data, the Commission will have failed in its responsibility to protect all Americans from incumbent monopolists.â€
http://www.mediaaccess.org/press/MAP%20Statement%20on%20MDU%20Order.pdf
FCC APPROVES CITADEL/DISNEY RADIO TRANSACTION
[SOURCE: Federal Communications Commission]
The FCC approved a transaction by which Citadel Broadcasting Corporation ("Citadel") will acquire 24 major-market radio stations currently licensed to subsidiaries of The Walt Disney Co. ("Disney"). As compensation for the purchase, Citadel will issue stock to the current Disney shareholders, resulting in a transfer of control of Citadel. That transfer of control will result in the loss of Citadel's grandfathering rights to continue to own 11 stations in seven markets. To address that issue, the Order approves an application for consent to assign the licenses for those stations to an insulated divestiture trust. Commissioner Robert McDowell said that the sale was a case of companies deconsolidating, pointing out that there is no overlap between the Disney and Citadel stations. Commissioner McDowell and Chairman Kevin Martin called the sale of the 11 stations a terrific opportunity for minorities and other new entrants to enter the marketplace. Commissioners Michael Copps and Jonathan Adelstein, who had withheld their support for the deal until now, said they were now voting in favor of it due to the divestiture of the stations that Citadel has agreed to.
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-271705A1.doc
* FCC Approves $2B Sale of Disney Radio Stations to Citadel, but Places Condition
http://us.rd.yahoo.com/finance/news/rss/story/*http://biz.yahoo.com/ap/0...
* FCC okays ABC Radio sale to Citadel
http://www.freep.com/apps/pbcs.dll/article?AID=/20070322/ENT03/70322046/...
* Citadel Purchase of ABC Radio Stations Approved
http://www.broadcastingcable.com/article/CA6426928?title=Article&spacede...
FCC EVALUATES 76 NONCOMMERCIAL EDUCATIONAL FM APPLICATION GROUPS
[SOURCE: Federal Communications Commission]
The FCC adopted a Memorandum Opinion and Order that will bring new or improved noncommercial educational ("NCE") FM broadcast service to 76 communities, with millions of people expected to benefit from this decision. Because of the not-for-profit nature of NCE FM stations, such facilities are uniquely situated to provide a rich and varied blend of educational, cultural and informational programming specifically designed to serve the needs of their listeners. This action also represents a major step toward the opening of the first-ever filing window for new NCE FM station applications in fall 2007.
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-271703A1.doc
FCC ADOPTS ANNUAL REPORT ON STATE OF COMPETITION IN THE SATELLITE INDUSTRY
[SOURCE: Federal Communications Commission]
The FCC adopted its First Annual Report to Congress on the state of competition in the communications satellite services industry. This inaugural report examines six wholesale and two retail satellite services markets for the period of 2000 through 2006. The FCC finds effective competition in the satellite markets addressed, based on a range of standard economic indicators commonly used to assess market concentration, conduct and performance. As the initial review of the satellite services sector, the Report provides a brief outline of the history and structure of the industry, and identifies certain capacity and pricing aspects specific to the sector, and notes intermodal competition from terrestrial technologies. At Congress' direction, the Report also discusses the Commission's policies regarding foreign participants' entry into the U.S. market, and as well as U.S. companies' ability to access to certain foreign markets. The FCC concludes that the commercial satellite services sector continues to benefit U.S. consumers, government at all levels and American industry by providing important connectivity and ongoing technology innovation.
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-271704A1.doc
FCC GRANTS 182 E-RATE APPEALS
[SOURCE: Federal Communications Commission]
The Federal Communications Commission granted 182 appeals filed by schools and libraries of decisions by the Universal Service Administrative Company (USAC) that reduced or denied funding to the institutions under the E-rate program. Under the E-rate program, eligible schools and libraries may apply for discounts for telecommunications services, Internet access and internal connections. The Commission remanded the applications to USAC for further consideration, and directed USAC to complete its review in either 90 or 120 days, depending on the nature of the initial denial. In each case, USAC had denied the applications based on minor errors or technicalities. The Commission found that rigid adherence to the rules in these cases resulted in outcomes conflicting with the statutory goal mandated by Congress of ensuring that schools and libraries have access to advanced telecommunications services. The decision in these appeals is limited and does not eliminate the need for applicants to follow E-rate program rules. Nor does the decision affect the authority of the Commission or USAC to conduct audits and investigations to determine compliance with the E-rate program's rules. The Commission remains committed to guarding against waste, fraud and abuse.
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-271688A1.doc
Broadcasters must provide "reasonable access" to candidates for federal elective office and must afford "equal opportunities" to candidates for any public office.
See 47 U.S.C. §§ 312(a)(7), 47 C.F.R. §§ 73.1944 (reasonable access); 47 U.S.C. 315, 47 C.F.R. § 73.1941(equal opportunities). See also 47 C.F.R. § 73.1920 (personal attacks rule); 47 C.F.R. § 73.1930 (right to reply).
COURT BACKS FCC EXEMPTION OF WEB PHONE SERVICE
[SOURCE: Reuters]
The U.S. Court of Appeals for the Eighth Circuit on Wednesday upheld a decision that exempted Internet telephone companies like Vonage from many state regulations and oversight, backing a 2004 decision by the Federal Communications Commission that exempted Internet telephone companies from rate regulation and from being required to seek certification before offering service. "After carefully considering the positions presented by both sides of this dispute, we conclude the FCC did not arbitrarily or capriciously determine state regulation of VoIP service would interfere with valid federal rules or policies," the court decision said. The FCC said the court decision affirms the agency's authority to act to provide for public safety by requiring access to 911 emergency help, preserve universal service and "further other critical goals in an equitable, nondiscriminatory and competitively neutral manner."
http://www.reuters.com/article/technologyNews/idUSWAT00718120070321
* Court Backs FCC on VoIP Regulation
http://www.multichannel.com/article/CA6426491.html?display=Breaking+News
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