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FCC Chairman voices 'concerns' about US phone unlocking ban, says he'll look into it
Bad news travels fast, so by now many US phone buyers ought to know about this country's depressing u-turn on phone unlocking. The latest policy -- which makes it illegal to unlock a phone without a carrier's permission -- looks to be set in stone for at least three years, but that isn't stopping people in high places from voicing serious reservations about it. The latest to pipe up is FCC Chairman Julius Genachowski, who told TechCrunch that the "ban raises competition concerns" and "innovation concerns." Genachowski said the FCC will look at whether it "can and should enable consumers to use unlocked phones" but he also admitted he isn't sure what kind of authority he has over the issue. It all feels a bit late in the day, frankly, especially when the FCC appears to have largely stood aside while the unlocking policy was being hammered out.
FCC votes in favor of rethinking spectrum holding rules, goading broadcasters into wireless selloffs
FCC meetings can be momentous occasions under the right circumstances, although it's seldom the case that we see the agency pass two potentially far-reaching measures in one sitting, like we just saw on Friday. To start, regulators have voted in favor of a proposal that will review spectrum sale rules and might drop the case-by-case determinations in favor of a more consistent screening mechanism. The reexamination will also consider a change to the ownership rules surrounding wireless frequencies that treats bands below 1GHz differently than those above -- the better to address a chorus of smaller carriers that don't like all the prime spectrum going to the companies with the most existing clout, namely AT&T and Verizon. FCC Chairman Julius Genachowski argues that reform could spur innovation through more competition, although dissenting Commissioner Robert McDowell is worried that consistent rules will somehow create "uncertainty." Side-by-side with the review, the FCC is proposing an incentive-based reverse auction strategy to have TV broadcasters voluntarily give up their spectrum for cellular and data use. The multi-phase approach would have TV providers set the price at which they're willing to sell their spectrum to the FCC; those that just can't bear to part with their airwaves would be corralled into a tighter band range to make for larger available frequency blocks in the auction that follows. As with other FCC proposals, there's likely to be a long interval between the auction vote, the review and any definitive rulemaking, let alone an impact -- auctions by themselves can take years to play out. Still, any success with the measures could head off spectrum crunches while simultaneously preventing any solutions from consolidating too much power and creating their own problems. [Tower photo via Shutterstock]
AT&T, Deutsche Telekom withdraw FCC application for T-Mobile merger, look toward DoJ
Now that FCC Chairman Julius Genachowski has called for an administrative hearing on AT&T's proposed buyout of T-Mobile, the two parties have decided to formally withdraw their application to the Commission. The confirmation came today, with an announcement from AT&T and Deutsche Telekom, which owns T-Mobile USA. In a statement, the two companies reiterated their commitment to the deal, adding that they're looking to receive final approval from the DoJ: "This formal step today is being undertaken by both companies to consolidate their strength and to focus their continuing efforts on obtaining antitrust clearance for the transaction from the Department of Justice." AT&T also reaffirmed that it would incur a $4 billion hit should the deal fall through, and that it expects to take out a pretax charge for that amount during the fourth quarter of this year. Of course, Genachowski's decision must still obtain approval from the full Commission, but it certainly looks like both parties are gearing up for a courtroom battle.
FCC finds AT&T merger not in public interest, Genachowski issues order to hold trial
FCC chairman Julius Genachowski issued a draft order this morning that calls for a hearing to take the AT&T / T-Mobile merger before an Administrative Law Judge. Such a hearing, reminiscent of the one held for the attempted buyout of DirecTV by EchoStar in 2002, would be held once the Department of Justice's litigation is complete and would certainly be another blockade for AT&T to push through. According to the FCC, the Chairman's order is awaiting final approval from the Commission at a later date, and won't be made public until that time. If the order gets the green light and a hearing is held, it'll be done so like a trial -- one involving cross examination, witnesses, rules of evidence and a good 'ol fashioned two-sided duel. It's no secret that the FCC has raised concerns over the proposed merger, and pushing this order forward understandably reflects that. In fact, during a conference call with media, the FCC expressed fears that the deal would violate antitrust standards and isn't in the public interest, and the Commission cited records showing it would ultimately result in a loss of jobs, contrary to AT&T's claims. Naturally, this means there's one more hoop for the carrier to go through before it can hope to pick up T-Mobile, and it's a biggie; with the FCC and DoJ holding steadfastly against the acquisition, the GSM carrier's chances of success appear to be slimming significantly. Head past the break to see AT&T and Sprint's reactions to the news.
FCC looking into Comcast / Netflix blocking threat, Level 3 responds as analysts chime in
News that Comcast had threatened to block internet backbone Level 3, which is one of the companies delivering Watch Instantly streams, sent shockwaves through the industry yesterday. Net neutrality advocates geared up for battle, Comcast insisted it was only enforcing the same arrangements other networks abide by while Roger Ebert and the rest of us fretted over Netflix access. Today, Level 3 issued a response to Comcast, claiming it is "distracting from the fundamental issue" which is free use of all content on the internet for its customers. Meanwhile, Multichannel News points out industry analysts say Level 3's claims of traffic discrimination "appear unfounded" while VideoNuze editor Will Richmond supposes Level 3 may have "bid too aggressively for the Netflix business and is now trying to recover." Most damaging to Level 3's argument are its own words from a dispute where it sought financial compensation from Cogent for using too much of its network's bandwidth: "For example, Cogent was sending far more traffic to the Level 3 network than Level 3 was sending to Cogent's network. It is important to keep in mind that traffic received by Level 3 in a peering relationship must be moved across Level 3's network at considerable expense. Simply put, this means that, without paying, Cogent was using far more of Level 3's network, far more of the time, than the reverse. Following our review, we decided that it was unfair for us to be subsidizing Cogent's business." Beyond analyst opinions and posturing the question of whether or not Comcast has the power to set pricing for access to its network, creating the toll road Level 3 is accusing it of being, is still at issue. That will certainly come into play at the FCC, where chairman Julius Genachowski mentioned at today's meeting that the agency is looking into Level 3's claims at the same time it continues to review the joining of Comcast and NBC. As far as your Netflix streams? Safe for now, though the company isn't commenting, Level 3 isn't the only provider it relies on for access and how any deal it might reach with Comcast could affect the service is still unclear. Update: Comcast has issued its own salvo of PR, including a video meant to breakdown exactly what internet peering is and what it wants to charge Level 3 for, 10 of its own facts about what it is, and is not doing, and a copy of the letter it's sent to the FCC about the issue. You can them all out in full after the break.
FCC, Justice Department look to prevent Comcast from hogging NBC's online video all for itself
Ready or not, Comcast and NBC will walk down the aisle in matrimony -- but it'll not be without a few conditions. According to The Wall Street Journal, both the FCC and the Justice Department are expected to impose conditions on how NBC online video is distributed online, to ensure the cable operator (with online video distribution channels of its own) doesn't withhold or threaten to withhold NBC Universal content from rivals -- both Netflix and Apple are specifically cited by WSJ. The FCC is additionally considering restrictions on Comcast slowing down / blocking "legal traffic" from its internet network, maintaining a pro-net neutrality stance. Chairman Julius Genachowski is currently meeting with staffers twice a week on the deal, with the timetable of circulating proposed conditions by mid-December -- narrowly avoiding sweeps week, unless 30 Rock has an idea or two up its Kabletown-owned sleeve.
FCC reevaluates US broadband competitiveness, finds 14 to 24 million lack access
The National Broadband Plan may one day bring broadband to everyone in the United States but, as a new report from the FCC itself reveals, there's still quite a ways to go. According to the report (issued every year by the agency), between 14 and 24 million Americans have no access to broadband, which is now defined by the FCC to be a 4Mbps downstream and 1Mbps upstream. That's a significant revision from the previous 200kbps downstream standard used by the annual report, and brings it in line with the minimum goals set by the National Broadband Plan. What does that mean for the 14 to 24 million without broadband access? Not much at the moment, unfortunately. FCC Chairman Julius Genachowski says that those individuals are mostly in "expensive-to-serve areas with low population density," and that "without substantial reforms to the agency's universal service programs, these areas will continue to be unserved." Of course, that finding is just one part of the report -- hit up the source link below to check out the whole thing.
Senators grill FCC Chairman over 'modest' National Broadband Plan goals
Bringing broadband to everybody is certainly an admirable goal, but at least some US Senators are apparently starting to question if the new National Broadband Plan is ambitious enough. In written questions submitted to FCC Chairman Julius Genachowski recently, Senator Daniel Inouye (D-HI) pointed out that other nations already have 100Mbps fiber-based services and are beginning to roll out 1Gbps residential services, which would only be required for a "single anchor institution in each community by 2020" under the National Broadband Plan" -- something Inouye says "appears to suggest that the US should accept a 10- to 12-year lag behind the leading nations." That's a sentiment echoed by Senator Mark Begich (D-AK), who asked Genachowski why the plan settled for the minimum download speed of 4Mbps by 2020, and added that "it seems a bit modest for a goal." For his part, Genachowski insists that the 4Mbps targets are "aggressive," and he notes that the plan recommends reevaluating that target every year, so it's possible it could increase over time. Hit up the PDF link below for the complete Q&A.
FCC will consider 'free or very low cost wireless broadband' service
Did you know there was a Digital Inclusion Summit going on? We already know the FCC isn't best pleased about the fact 93 million Americans are making do without access to home broadband, and this latest event was an opportunity for it to dish some more info on its forthcoming National Broadband Plan. The major obstacles to broadband adoption identified by the FCC were noted as cost, computer illiteracy, and a sheer lack of awareness about the benefits the web offers (outside of cute kitties). The big Plan will be delivered to Congress a week from today, and its suggestions will include the creation of a Digital Literacy Corps, who'll be performing missionary duties among the unenlightened, and the big whopper: a proposal to "consider use of spectrum for a free or very low cost wireless broadband service." Yeah, if you can't jump over the cost hurdle you might as well eviscerate it from existence. Quite naturally, such radical plans have been met with much grumbling opposition, and Business Week reports that it may be years before the full reforms are implemented ... if at all.
Obama taps Julius Genachowski to head the FCC
As widely expected by most folks who speculate on such things, President Obama has now formally nominated lawyer and former venture capitalist Julius Genachowski to head up the Federal Communications Commission and fill the slot vacated by Bush appointee Kevin Martin. Among other things, Genachowski's nomination is particularly notable given his support for net neutrality, which he made quite well known during the Obama campaign in his role as a top technology advisor. Of course, if and when he gets confirmed, he'll also have his hands full with a few other tricky issues, including the widespread rollout of broadband services as a result of the recent stimulus package, and that small matter of the digital TV transition. [Via Wired Epicenter]
