Proposed Wireless NN Rule “No Block, But Not No Lock?”

An interesting tidbit from Washington Post Reporter Celia Kang’s interview with Ruth Milkman, the FCC’s Wireless Bureau Chief. Of interest, Milkman states that the application of network neutrality to wireless would still allow cellular companies to lock cell phones to wireless providers.

How are the proposed rules different from conditions on the C block during the 700 MHZ auction? There, net neutrality rules were put in place that allow any device to attach to the network and prevent Verizon Wireless, who won the spectrum, from blocking Web content.

The difference between what we are thinking about in the general NPRM (notice of proposed rule-making) and the C Block is that we are not proposing a no-locking rule. So I guess it’s no block but not no-lock. If consumers can get an unlocked device and not harm the network, the consumer ought to be able to attach that device to a network. Does a service provider have to unlock the device it provides to the consumer? The draft doesn’t go that extra step.

This is an interesting twist on the application of the third principle of the 2005 Internet Policy Statement:

To encourage broadband deployment and preserve and promote the open and interconnected nature of the public Internet, consumers are entitled to connect their choice of legal devices that do not harm the network.

(emphasis in original). This is generally taken as the application of the “Carterfone” principle (and the Internet Policy Statement cites the Carterfone decision in case anyone misses this point). This is the decision that held that AT&T could not refuse to allow you to connect any device, like and answering machine or a phone you owned or a dial-up modem, to the phone network.

Milkman is right that the freedom to connect to a network is not necessarily the same thing as the freedom to move a device that comes locked from one network to another. In the old days, it wasn’t necessary to say it that way because there weren’t other networks to attach your device. The question was whether somebody other than Ma Bell could make something and attach it to the phone network. By the time we got to multiple wireline networks serving the same neighborhood, the consumer electronics market was so well developed that the idea of trying to lock particular laptops or wireless routers to specific network providers did not make much sense. Indeed, even in the never ending fight over set-top boxes and cablecard, the fight is over the ability to attach to an MVPD network, not the ability to unlock a device and move it from one MVPD network to another.

Most of us have always assumed that network neutrality applied to wireless would include both “no blocking” of content and applications and “no locking” devices to networks. But I suppose it doesn’t have to be that way. And, of course, this does not stop the FCC from dealing with handset exclusivity separately.

Still, it comes as a bit of a surprise. Nice to have the heads up, and tip ‘o the hat to Celia for doing this series of interviews with important folks at the FCC.

Stay tuned . . . .

St. Cloud Muni System Saved by Citizen Users — “Waste” or “Success.”

As reported by Esme Vos at Munireless, the St. Cloud Muniwireless system has been granted a reprieve. In an effort to lower municipal costs to avoid raising taxes, the town council voted on September 30 to shut down the wireless network. At a city council meeting two days later, a crowd of local residents showed up to protest the decision, resulting in a 120-day extension to reexamine the question.

St. Cloud’s political fight over its municipal wireless network cuts to the heart of one of the core debates in the national broadband plan. Do we regard connectivity as a service on the same level as schools, sewage, and public transportation — where we expect the city to subsidize the service because it provides needed social benefits? Or do we insist that we only provide broadband where it can pay for itself on a going forward basis (after some initial stimulus money to get the network built and get the ball rolling)? There is no doubt that for a city of 30,000, a fair number of people use the St. Cloud wireless network (at least 8500 unique connections/month) and enough regard it as sufficiently important to lobby their city council to keep the network in the face of a financial shortfall. At the same time, no one argues with the fact that the network costs the city $30K/month and seems likely to do so for the foreseeable future.

So how do we measure waste or success? I’ve argued on more than one occasion that we should look on these networks as the equivalent of a public transportation system. They don’t compete with cabs or car sales despite the fact that many people rely on them to avoid driving. In fact, cabs and auto dealers benefit because public transportation systems because they keep traffic manageable. And, as the iPhone and other smartphones continue to increase the demand for spectrum for data traffic, licensed wireless operators like AT&T are finding it beneficial to encourage customers to use wifi hotspots and offload the traffic whereas previously carriers resisted letting customers use wifi at all.

We have until February to debate how we want to incorporate this into our national broadband plan. Broadband as utility — where we encourage local governments to offer services like St. Cloud for the positive externalities for everyone even if it requires continuing subsidy? Or does it only make sense to have municipal broadband where it can pay for itself? With the final decision on St. Cloud now due in January 2010 — a month before the National Broadband Plan — it will be very interesting to see what the citizens of St. Cloud and their local government decide.

Stay tuned . . . .

We Release Our First Actual Industry Report on Upcoming 2.5 GHz Auction.Go us and buy our stuff!

Fellow Wetmachiner and all around spectrum genius Dr.Gregory Rose has written a report on the upcoming FCC Auction 86 in the 2.5 GHz BRS Band. Dubbed “The WiMAX Band: (2.5 GHz): Characteristics, Technology, Major Spectrum Holders in the BRS-EBS Service and Prospects for Auction 86, and edited by Harold Feld, this report contains information vital to understanding how the evolution of the 2.5 GHz band and the FCC auction beginning at the end of October will shape WiMAX Deployment in the United States. Resources with the Report include:

A Searchable Database of All BRS and EBS Licensees and Spectrum Lessees. Anyone who has used the FCC’s Universal License Service knows how difficult it is to search for even basic information. The master database takes all the information and puts it into an easily searched Excel® spreadsheet.

Special breakout tables and coverage maps for Clearwire and Sprint. Convenient tables and coverage maps show the coverage and relationships of these WiMAX giants.

• Analysis of the top 35 other providers. The report also lists the top 35 licensees in the band after Sprint and Clearwire, describing their general market areas and what their spectrum holdings say about their strategies.

The report cost $499 until FCC Auction 86 beginson October 27, at which point it goes up to $799. Those purchasing at $499 may buy the post-Auction update, scheduled to come out 3 months after Auction 86 closes, for a savings of $200 off the full post-auction price.

Copies of the report are available for sale at Broadbandcensus.com and at Muniwireless. Click HERE to get your copy today!

To see the full press release, click here.

To read the executive summary for free,click here.

Stay tuned . . . .

tags: wimax, wimax band, 2.5 GHz, wireless, spectrum, wimax report, wimax auction, fcc, fcc auction, fcc auction 86, harold feld, gregory rose, strength to strength develop-ed.

Continue reading

Scott Cleland Needs To Work Harder On Ad Hominems. Or, better yet, skip them entirely.

I happen to like Scott Cleland as a person, and I recognize he’s got job to do, but certain kinds of ad hominem attacks are just lazy — and stupid. I’m referring here to Cleland’s to attempts at “gotcha” posts in recent days. One directed against my employer Public Knowledge, the other directed against fellow traveler Free Press.

First, in the flap over Google Voice and blocking, Cleland accused PK of having a double standard — demanding AT&T not use “self-help” on blocking traffic stimulator sites while turning a blind eye to GV doing the same thing. I can understand Scott missing my quote the week earlier in Communications Daily condemning the practice (and suggesting that if they claim the right to block calls then networks can refuse to complete GV originating calls), Communications Daily is a paid subscription and not available online. But how did Cleland miss my initial post on the subject in which I said the FCC should investigate if Google really were blocking calls? (I’ll cut Cleland slack for not predicting my subsequent upping the urgency when Speakeasy’s decision to block these sites indicated that more VOIP providers are going to push this route.)

Now, Cleland has gone after Free Press by claiming that FP does not disclose its funders. As FP puts its annual reports and 990s online, this is a pretty stupid claim. Mind you, while I approve of disclosure, I’m always a big fan for answering substance. I get equally annoyed at my colleagues for acting as if the fact that someone once worked for a telco or takes money from some industry source automatically discredits them without looking at the merits of the argument. But claiming folks are hiding something when they put the information in a fairly accessible place on their webpage is just silly.

I anticipate that the response from Scott (and, inevitably, Brett — whose customers must be used to long ques for service given how much time he spends commenting on my blogs) will boil down to “well, under my definition of what I say your argument is, you are really hypocrite.” Happily, having now raised child up to age 11, and having grown up on Usenet in the 1980’s, I am familiar with this invitation to a meaningless debate whose purpose is to allow the other side to declare victory by continually redefining terms and reserving the right to be the ultimate judge of my conduct. I decline. Likewise, I decline the inevitable “Hah, your declining just proves I am right — you lying hypocrite loser” (I swear I can just write a Brett-bot. Heck, I would think he was a bot if I hadn’t met him). The beauty of the internet is that folks are free to draw their own conclusions.

Which is why skipping the silly ad hominems is probably the best route entirely. But if one does engage in such tactics (and folks on the pro-NN side are sadly just as guilty on occasion), at least try to avoid attacks so easily proven to be factually wrong.

Stay tuned . . . .

A Brief Nod To Cox For Raising Its Bandwidth Caps

I need some sort of icon or whatever for “while I don’t necessarily like what you’re doing, I like the way you’re doing it.” Last week, that went to Speakeasy for giving excellent notice on its unfortunate decision to block certain phone numbers. This week, my “Tip of My Hat While Wagging My Finger” (yes, the reference Stephen Colbert is obvious) goes Cox Cable and their decision to increase the size of their bandwidth caps (new terms of service here).

I am not happy with bandwidth caps, but don’t have a position yet on regulating them unless they are so obviously limited that they appear designed to protect video revenues and fall into the antitrust/competition zone. I recognize there are advantages and disadvantages to metered pricing. In the short term, it can help bridge the gap where demand for capacity rapidly outpaces available capacity. In the longer term, it works to reduce use and innovation which has negative implications for our economy and overall digital future. It’s also not that clear that there is a good linkage to bandwidth caps and actual capacity limits, and whether bandwidth caps discourage investment in capacity by making it easier and cheaper to cap use rather than build capacity.

Still, if one must have bandwidth caps, then they need periodic review and should get upgraded as “average” use grows and as network operators make needed upgrades. So while I’m not thrilled that Cox has bandwidth caps in the first place, I’m pleased they have now upgraded them. Hopefully Comcast, which has had the same bandwidth capacity cap for a year now, will soon follow suite and upgrade its 250 GB cap.

Stay tuned . . . .

Speakeasy now blocks calls — this is getting serious.

In the wake of reports that Google Voice is blocking calls to “traffic stimulator” sites (like free conference calling and free porn sites), Speakeasy has now changed its terms of service to explicitly block calls to these sites with its VOIP product. To its credit, Speakeasy directly informed its users (a friend forwarded me the email reproduced below). But this now elevates the question of VOIP providers and calls to a new level.

The FCC has danced around the regulatory status of “interconnected VOIP providers” (meaning VOIP providers that connect to the regular public switched voice network (or PSTN)). It has required regular phone companies to interconnect with VOIP providers in the famous Madison River case, and subjected VOIP providers to Enhanced 911 rules and CALEA, but has shied away from calling them telecommunications services. So the ability of VOIP providers to engage in the kind of “self-help” the FCC said was off-limits when the traditional Title II phone companies tried it. (Actual Order here for us legal buffs).

I’m not making a specific recommendation here because I’m still trying to gather info. As a general rule, I despise regulatory chameleons who shift regulatory treatment based on what their best interest. If you want to be a Title I information service and be able to refuse to connect calls, don’t complain when you get blocked because you are not eligible for mandatory interconnection under Title II. But I’m also well aware that reality matters and its intrinsic messiness means that these inclinations need to be guides rather than hard and fast rules. I am aware of my ignorance of the factual situation enough to know that I’d like to have a lot more information about the nature of the services and the regulatory environment (about which I know only enough to make my usual uninformed guesses).

But the one thing I can say definitively is that the longer this goes on without any FCC response, the more VOIP providers are going to look to save themselves money by blocking these “free conference call” sites.

Stay tuned . . . .

Continue reading

A Brief Response To Richard Bennett's New Paper

I salute Richard Bennett’s new paper Designed for Change, in which he traces the engineering history of the end-to-end principle. It is a serious paper and deserving of serious response. Unfortunately, it being right before Yom Kippur and various deadlines, that more serious response will need to come from elsewhere. I can give only a brief, surface response — reality is messy.

OK, too brief. A bit more elaboration. Richard Bennett is eminently qualified to write the technical history and draw engineering conclusions. As are a large number of other folks who take very different views on the issue of net neutrality and the virtues of end-to-end (Vint Cerf, David Reed and kc claffy to name a few folk of my acquaintance). The history described by Richard is layered onto an equally rich history of political and economic events which all interweave, and continue to interweave, to create a complex and messy reality in which public policy tries (in my opinion) to set rules to create the strongest likelihood of the best possible outcome.

More below . . . .

Continue reading

AT&T Falls Back on “It's All About Google” Strategy

For some years now, the opponents of Network Neutrality have had the same basic fallback strategy: When all else fails, make it about Google. So no surprise that AT&T, in a letter supposedly about the rather technical issue of “traffic pumping” opens with an attack on Google and Net Neutrality. Because if we have learned anything from our national healthcare debate, it is that it is more important to make this about how awful the other side is rather than debate the merits.

More below . . . .

Continue reading

Update on Program Access — looks like FCC rolls lucky 7 at DC Cir. Casino.

Wall St. J. reports the court was fairly deferential to the FCC’s predictive judgment. That’s good. But it would be nice if the D.C. Circuit were less of a crap shoot. What makes the FCC’s “predictive judgment” better on program access and on inside wiring than on cable ownership or telco forbearance? Makes it rather Hell to do policy one way or the other.

Stay tuned….

Will The DC Circuit Pull The Plug On Program Access?

Next week, the D.C. Circuit will hear oral argument on the FCC’s 2007 decision to extended the program access rules another five years. What surprises me is how few people seem to have considered the possibility that the D.C. Circuit will reverse this decision and vacate the rule, as they did last month with the 30% cable horizontal ownership limit.

Part of that is the way people tend to make analysis based on conventional wisdom. “Everyone knows” that without the program access rules, competitive providers would be toast because the largest cable incumbents can control programming, just as “everyone knows” that we don’t need a 30% cable ownership limit because the MVPD market is so wildly competitive that the largest cable incumbents can not possibly influence cable programming. As Comcast and Cablevision pointed out to the DC Circuit, however, the conventional wisdom in this regard is not entirely consistent. If, as the court found last month as a matter of law, the MVPD market is wildly competitive and consumers switch willy-nilly from one to the other rendering it impossible for a cable provider to block a rival programming network from emerging, how on Earth can cable programmers below the 30% limit exercise foreclosure?

There are, of course, sound answers to that in both law and economics, although the biggest single deciding factor is likely to be the absence from the panel of Douglas Ginsburg, a man who believes membership in the Federalist Society substitutes for an actual understanding of economics and has published an academic article yearning for the “good old days” when the courts made economic regulation unconstitutional and concluding that courts should not defer to agency efforts to create “synthetic competition.” (An offense in the eyes of the Gods of the Marketplace.) I believe the panel is Sentelle, Griffith and Kavanaugh, which is not exactly good news for the program access rules but isn’t death on wheels like Ginsburg (or Williams or Edwards). Sentelle and Griffith, who were both on the imaginary competition outweighs real competition decision back in June overturning the FCC’s decision not to grant Verizon a forbearance petition, and Kavanaugh, who was on the cable ownership panel and therefore presumably agrees that switching costs aren’t real and cable operators are in such fear of youtube clips they would never make programming decisions based on affiliation. On the flip side, Kavanaugh actually wrote the somewhat more deferential special access opinion from July. Unfortunately for those who rely on program access, none of the judges who affirmed the Inside Wiring Order are on this panel.

Of course, there is something to be said for actual law and analysis of the underlying FCC Order, even in the D.C. Circuit. So below, I shall provide a brief outline of the program access rules, how we end up in court, the likely arguments, and what happens if the D.C. Cir. overturns the rules (which even I give a low probability to, but do not discount — especially given the panel) — including why that might actually be the best thing to happen to cable regulation in the long run.

More below . . .

Continue reading