Upcoming policy issue

For years, the big internet service providers have striven to hamstring competition across the telecommunications landscape. And in June 2018, they essentially asked the Federal Communications Commission to finish the job by repealing a rule granting competing phone and internet companies wholesale access to their copper-wire phone infrastructure.

T-Mobile and Sprint are small players in a wireless market where being small makes it hard to survive. One expert told me that if the deal is framed as a pairing of two of the four national wireless carriers, it has little chance of making it past the regulators. That’s why T-Mobile CEO John Legere and Sprint executive chairman Marcelo Claure have been trying to describe the combined company as a new kind of entity that sells not only wireless service, but potentially home broadband service and a host of media in the future.

Critics of the Sinclair-Tribune merger continue to try to get Federal Communications Commission Chairman Ajit Pai to delay a decision on the deal until a federal appeals court rules on the UHF discount that made the combo possible. Common Cause and Public Knowledge officially petitioned the FCC to "hold the proceeding in abeyance," which is just legalese for "hold off," pointing out that "the Court’s consideration of the UHF Reinstatement Order has direct bearing on whether the proposed acquisition of Tribune Media Company (“Tribune”) by Sinclair Broadcast Group, Inc.

The New York attorney general’s office is investigating how T-Mobile’s  $26 billion deal to buy Sprint could impact competition in the pay-as-you-go wireless market, according to people familiar with the matter. Representatives from the state attorney general’s office have contacted companies that sell prepaid phone services in recent weeks with questions about pricing and customers. Dozens of other state attorneys general are part of the probe. Prepaid subscribers don’t sign long-term contracts and instead pay up front each month.

Apparently, Walt Disney Co. is close to winning US antitrust approval for its $71 billion deal for 21st Century Fox Inc.’s entertainment assets, creating a potentially insurmountable hurdle for a rival bid from Comcast. The Justice Department is set to approve the deal in as soon as two weeks, according to an unnamed source. Disney has agreed to sell some assets to address competition problems stemming from the tie-up. 

Although net neutrality protections end June 11, don't expect to see huge changes right away.

Federal Communications Commission Chairman Ajit Pai (in)famously said, “We need to fire up the weed whacker and remove those rules that are holding back investment, innovation, and job creation.” On June 1, 2018, we learned a bit about how far follow-Republican FCC Commissioner Michael O’Rielly is willing to go to cut back consumer protections. In FCC Regulatory Free Arena, Commissioner O’Rielly highlights the pervasiveness of the “app economy” to argue that traditional companies regulated by the FCC should seek to be released from their regulatory obligations.

[Commentary] The best and fastest vehicle for bringing back the vital protections of net neutrality resides in both houses of Congress. It’s called a “Joint Resolution of Disapproval” which is allowed under a law called the Congressional Review Act (CRA). The CRA allows Congress to overturn an agency decision soon after it is adopted with a simple majority of members in attendance. This Congress used the CRA last April to repeal Federal Communications Commission rules that would have required ISPs to protect the privacy of their customers.

[Commentary] The Federal Communications Commission is pushing forward with changes to the Lifeline program, which would hamper recovery efforts and cut off hundreds of thousands of Puerto Ricans — who are also US citizens — from vital telecommunications services. The Trump administration’s FCC has proposed changes that would sharply alter the purpose and scope of the program, further antagonizing hurricane victims who are still struggling to rebuild. Before the catastrophic 2017 hurricane season, over 500,000 island households relied on the Lifeline program to stay connected.

Democrats are increasing looking to make their support for net neutrality regulations a campaign issue in the midterm elections. On Capitol Hill, the Senate is expected to vote on a measure to restore the Obama-era rules repealed by the GOP-controlled Federal Communications Commission. Even if they fail they think the public fight will crystalize their image as the party battling to support an open internet.