Lauren Frayer
Broadband is like a river (but not the way you think)
[Commentary] In his 2014 book, "The Accidental Superpower", Peter Zeihan traces the origins of America’s economic prosperity to its abundance of rivers. The US has more miles of navigable waterways, which provide a uniquely efficient and inexpensive means for transporting goods across a continent, than the rest of the world put together. According to Zeihan, this difference was a critical factor in the country’s emergence as the world’s leading superpower. And because rivers do not require large-scale efforts to build and operate, they favor decentralized development, which has encouraged local entrepreneurs, who represent a distinctive aspect of the US economy. The US is also blessed with many natural harbors that are another major contributor to a country’s economic success.
In recent years, it has been technology -- and especially information and communications technology (ICT) -- that has provided the critical infrastructure that has promoted economic growth in the US and globally. It turns out that the economic impact of ICT has been based not only on its technical characteristics, but also on the way that it has been developed and deployed. Although we remain the pre-eminent source of tech innovation, new technologies get diffused around the world almost overnight. If we are going to keep our economy strong in a highly competitive world, if we are going to keep the Internet-powered engine of innovation running at full speed, we need policies that will promote permission-less innovation, continued investment in expanding and upgrading our digital infrastructure and policies that encourage companies to use it creatively.
[Richard Adler is a distinguished fellow at the Institute for the Future in Palo Alto (CA)]
AT&T extends 1-Gig business fiber services to 180 US cities
AT&T has been enriching its business services offering with a new fiber footprint that can now deliver 1 Gbps services to multi-tenant office buildings in more than 180 cities in the United States. Initially each of the buildings that have been connected to the fiber network will support symmetrical 300 Mbps with the ability to scale to 1 Gbps. These connections have been made possible thanks to the fiber-to-the-building (FTTB) portion of AT&T's Project VIP program. And with Ethernet, VPN and cloud growing 14.8 percent year-over-year in the first quarter to $2.6 billion in its business services segment, it's not surprising to see AT&T aggressively building out its fiber network into more buildings in its 22-state territory.
Crown Castle to acquire Quanta Fiber for $1 Billion
Crown Castle is acquiring Quanta Fiber (called Sunesys), a subsidiary of Quanta Services, for about $1 billion in cash, a deal that will immediately bolster the wireless tower company's dark fiber capabilities for small cell backhaul services. A big element of this deal for Crown Castle is the fiber footprint to serve small cell backhaul deployments being carried out by major wireless operators in a number of key cities in the United States. By gaining access to Sunesys' dark fiber capabilities, Crown Castle will be able to address Verizon Wireless' desire to have these solutions for its macro cell and small cell deployments.
While other large operators have yet to join them, Verizon Wireless has been mandating that its backhaul partners deliver a dark fiber backhaul solution. Ben Moreland, CEO and president of Crown Castle, said that by acquiring Sunesys, the company will have fiber assets that could potentially serve more than 3,500 small cell opportunities. Sunesys currently owns or has rights to nearly 10,000 miles of fiber in major metro markets across the United States, including Los Angeles, Philadelphia, Chicago, Atlanta, Silicon Valley and northern New Jersey. About 60 percent of Sunesys' fiber miles are located in the top 10 basic trading areas.
Sprint makes Wi-Fi the 'fourth layer' of its network with new Boingo deal, small cell push and Wi-Fi router
Sprint CTO Stephen Bye wrote that the carrier views Wi-Fi as "a complementary fourth layer of our network (the first three layers being our 1.9 GHz, 2.5 GHz, and 800 MHz spectrum bands). By enabling customers to move more smoothly between trusted Wi-Fi and cellular, our customers will have a better mobile experience in more locations, all while lowering their cost of data usage." Sprint offers Wi-Fi calling on the newest iPhones and most of its Android smartphones. Sprint now has more than 25 smartphone models and more than 15 million customers with the ability to use Wi-Fi calling. However, currently Sprint's Wi-Fi-to-cellular handoff is not smooth and if a customer initiates a call in a Wi-Fi coverage area and then leaves Wi-Fi coverage the call will likely drop.
Sprint also launched Wi-Fi Connect, a consumer Wi-Fi router that prioritizes Sprint specific Wi-Fi Calling over all other Wi-Fi traffic and includes "smart connect" technology that dynamically manages 2.4 GHz and 5 GHz Wi-Fi bands for optimal Wi-Fi data performance. For customers who need additional in-home coverage, the device is free of charge if they have broadband Internet access and Sprint's Wi-Fi Calling capability on their phone. Interestingly, Sprint is also launching outdoor small cells with Wi-Fi to enhance coverage and capacity. "The current product we are working with for outdoor street level coverage includes Wi-Fi and should be commercially deployed in the near future," Bye wrote. Sprint's Wi-Fi push comes as the carrier is reportedly planning to announce a new network upgrade effort.
Verizon-ESPN dispute may pave way for a la carte pay-TV programming
[Commentary] There's a reason ESPN sicced its lawyers on Verizon, shattering any pretense of being part of a big, happy pay-TV family. Verizon's new Custom TV bundles of channels -- which break off ESPN and other sports channels into a separate package -- could signal the end of a business model that cable networks love and consumers detest. The stakes couldn't be higher. If Disney-owned ESPN prevails in court, it will ensure that the expensive sports channel will continue to be forced on subscribers who don't want it. ESPN accounts for an estimated $7 of monthly bills, more than any other channel that isn't purchased separately. If Verizon wins, it will open the door for other pay-TV companies to break up conventional programming bundles and give consumers more freedom to choose channels.
"This is a potentially watershed event," said Rich Greenfield, a media analyst with BTIG in New York. No one disputes that the pay-TV industry is undergoing radical change. Like publishing, music and other businesses in the throes of digital disruption, pay-TV companies are struggling to protect Niagara-like revenue streams as consumers demand more choice and value. Cutting the pay-TV cord was once only for the technologically savvy. Now, devices such as Roku and Apple TV have democratized streaming video. That has sparked an explosion in quality programming from subscription services including Netflix, Hulu, HBO Now and Sling TV. So Verizon's move toward smaller, cheaper, more competitive bundles makes perfect sense -- which is why it's so threatening to ESPN. Cable networks have long enjoyed guaranteed customers -- and revenue -- through contracts with pay-TV providers. In the future, they may have to peddle their wares directly to viewers, which is a lot harder. It's no surprise, then, that ESPN is fighting to protect the status quo.
House Republicans Query FCC About Greenhill Volunteer
Three Republican House leaders have written the Federal Communications Commission asking for information on a former member of banking firm Greenhill & Co., who had volunteered services worth hundreds of thousands of dollars to the FCC after his former firm had received a contract to produce incentive auction-related material. Greenhill produced a slick packet of incentive auction financial information to help broadcasters decide whether to put spectrum up for auction. According to the letter to the FCC from the trio of legislators, they are concerned about possible conflict of interest given the FCC contract and ties to the "high-profile temporary volunteer." Sending the letter were full House Energy & Commerce Committee Chairman Fred Upton (R-MI), Oversight and Investigations Subcommittee Chairman Tim Murphy (R-PA) and House Communications Subcommittee Chairman Greg Walden (R-OR).
“FCC decisions have sweeping impact on the economy well beyond the industries it regulates. We want to be sure that any work done by the commission or on its behalf is for the benefit of the American people. This relationship warrants questions and we look forward to the chairman’s timely response,” they wrote. Among there concerns are that they say the value of the donated services was $300,000 according to an FCC gifts report, which they say is an unprecedented amount. They want answers by May 13 to why Lawrence Chu, former Greenhill managing director, provided those services. They also want to know about his interaction with the General Counsel's office, are seeking copies of the Greenhill contract, want to know how Chu was selected and much more.
Protecting student data in a digital world
Across industries, data and advanced analytics are being used to personalize products and services, generate more impact at lower cost, and improve the user experience. Education is another field that stands to benefit from this trend: there is much evidence that data-fueled learning tools can dramatically improve student outcomes. The effective use of student data in K–12 schools -- in fact, in most of the education system -- is nascent, however. Schools, and in particular public schools, have limited budgets and may find it difficult to prioritize investment in data-driven tools and technologies. School systems are enormously complex, which can make it challenging to implement new programs. And the use of student data raises questions about issues such as privacy, the possibility that personal information could be accessed by or sold to unauthorized third parties, and, more broadly, the ways in which data will be collected and used both inside and outside the school system. In fact, the risks involved with data-driven instructional methods -- and the perceptions surrounding those risks -- are among the biggest challenges to helping students gain the benefits of large-scale adoption of data and analytics in schools. But we believe these challenges can be overcome.
Organizations in many industries are grappling with similar concerns, and in turn they have begun to design processes and safeguards that enable the productive use of personal information while also addressing concerns about its collection and use. In important ways, schools differ from private-sector companies like retailers and banks, and even from more public-minded organizations like hospitals. Nevertheless, we believe that stakeholders across the education system -- policy makers, school administrators, teachers, parents, and organizations that are responsible for collecting and protecting data -- can learn from other industries that use data to improve and personalize the user experience, and that they can embrace the transparent use of data as a path to improved educational achievement for students.
Patriot Act Faces Revisions Backed by Both Parties
After more than a decade of wrenching national debate over the intrusiveness of government intelligence agencies, a bipartisan wave of support has gathered to sharply limit the federal government’s sweeps of phone and Internet records.
A bill that would overhaul the Patriot Act and curtail the so-called metadata surveillance exposed by Edward Snowden was overwhelmingly passed by the House Judiciary Committee and was heading to almost certain passage in that chamber in May. An identical bill in the Senate -- introduced with the support of five Republicans -- is gaining support over the objection of Senate Majority Leader Mitch McConnell (R-KY), who is facing the prospect of his first policy defeat since ascending to majority leader.
Under the bipartisan bills in the House and Senate, the Patriot Act would be changed to prohibit bulk collection, and sweeps that had operated under the guise of so-called National Security Letters issued by the FBI would end. The data would instead be stored by the phone companies themselves, and could be accessed by intelligence agencies only after approval of the secret Foreign Intelligence Surveillance Act court. The legislation would also create a panel of experts to advise the FISA court on privacy, civil liberties, and technology matters, while requiring the declassification of all significant FISA court opinions.
Germany Is Accused of Helping NSA Spy on European Allies
Chancellor Angela Merkel’s government is fending off allegations that the German secret service helped the United States to spy on European partners and companies.
The German news media has reported that the country’s domestic intelligence agency, known by its German initials, BND, gathered information on European companies at the behest of the United States National Security Agency for years, citing confidential documents and government experts. The German news media have further said that the Merkel government knew of cooperation between the BND and the American spy services, but withheld that information from a parliamentary committee assigned to investigate the affair.
Bright House Emerges as a Player in the New Cable Drama
The collapse of Comcast’s bid to acquire Time Warner Cable has led to a flurry of talks in the cable industry over other possible deals. And there is an unlikely player at the center of the unfolding drama: the Newhouse family’s Bright House Networks.
Apparently, Time Warner Cable and Charter Communications have separately been in touch with Bright House at the highest levels to discuss an acquisition of the company. For Charter, the fourth-largest US cable operator, acquiring Bright House, an operator with two million customers and steady cash flow, could be a steppingstone to go after the much larger Time Warner Cable. Such a deal would strengthen Charter’s balance sheet and increase its borrowing capacity. One reason Time Warner Cable rejected Charter’s bids last time around was its concern about the resulting debt load on the combined company. For Time Warner Cable, an acquisition of Bright House would accomplish two things: it would take away an asset that could help Charter’s deal ambitions, while making Time Warner Cable more expensive and complex to acquire.