Author: Harold

Pass the Popcorn! CRTC Offers Great Opportunity To Watch Someone Else Play With Critical Infrastructure.

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According to this official news release, the Canadian Radio-Television and Telecommunications Commission (CRTC) denied a request from the Canadian Association of Internet Providers (CAIP) to stop Bell Canada from throttling without notice the traffic of rival ISPs leasing access to Bell Canada’s network. Instead, CRTC punted to a general inquiry on traffic shaping.

According to Michael Geist, expert on all things telecom and Candian and general super-smart guy, this is not the last word from the CRTC on the question. But since — according to the public notice — the first public hearing on the subject is scheduled for July 9, 2009, Canadian ISPs can look forward to a considerable period of time when they live at the mercy of their largest rival.

This does not depress me, as I do not live in Canada. Rather, I am excited at the prospect of some other country (for a change) deciding to make offerings to the Gods of the Marketplace and play games with its critical infrastructure while I get to watch. Until now, Canada has generally been outranking us in the international rankings on penetration, although it ranks less well on affodability and only so-so on speed (as compared to countries with real broadband). Those who see such things as relevant (and not everybody does, the situation is complex and the data messy, hard to come by, and subject to multiple interpretations) generally regard this as a consequence of bad policy choices by the FCC (again, not everyone agrees, the data — to the extent we even have data — is very messy and complex). In particular, a lot of us think that the decision to eliminate mandatory wholesale access and rely on “intermodal” competition was a phenomenally bad idea.

Now we may get a chance over the next few years to test this hypothesis, and at someone else’s expense! Go Canada!

More below . . . .

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Adelstein Is Right On FCC Authority to Launch An Investigation Into Arbitron Portable People Meter.

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FCC Commissioner Adelstein wrote Chairman Martin a letter yesterday asking Martin to launch a formal inquiry into Arbitron’s use of the new portable people meter (PPM). As I noted back in September when the FCC put the Petition for an inquiry out on Public Notice, this issue means a lot to minority-oriented stations and their audiences, as they believe the PPM undercounts listeners to minority radio programming.

Also as I said back then, I think the FCC has very broad authority to investigate just about anything related to its core mission of, in the words of Section 1 of the Communications Act, “to make available, so far as possible, to all the people of the United States, without discrimination on the basis of race, color, religion, national origin, or sex, a rapid, efficient, Nation-wide, and world-wide wire and radio communication service with adequate facilities at reasonable charges, for the purpose of the national defense, for the purpose of promoting safety of life and property through the use of wire and radio communications.”

Mind you, having the power to launch an official inquiry does not mean you have the power to actually do anything. The FCC’s mandate is fairly broad, but it has limits. But one of the questions the FCC can ask is: “So, if we discovered something we didn’t like, what could we do about it?” That answer may be nothing more than “tell Congress this sucks,” a conclusion the FCC has reached in the past on occasion when it concluded it could take no action under existing law. But it also allows the FCC to explore other options. For example, the FCC could decide that concerns over the ppm make Arbitron ratings unreliable for certain measurements relating to its rules, like determining whether or not a station is in the “top four” for purposes of permitting a merger. Or the FCC could decide, after seeing lots of opinions and legal research from interested parties pro and con, that the FCC does have authority even if it has never exercised this authority. Adelstein cites 47 U.S.C. 257, which requires the FCC to eliminate market barriers to entry. I think a fairly strong case can be made that regulation of ratings services falls under the FCC’s ancillary authority over broadcasting. That’s a little difficult after American Library Association v. FCC (the broadcast flag case), because a ppm is not a “communication” and ALA held that ancillary jurisdiction must regulate an actual communication or transmission rather than simply have some possible impact on the future of television. OTOH, ratings are so clearly integral to the entire broadcasting industry that the connection with the “statutorily mandated” responsibilities and goals of the Communications Act is very strong.

Neither of these views may bear out on close investigation as authority to act. But again, this is why the FCC conducts inquiries. While it is easy to point to things that might have an impact on broadcasting that clearly lie outside the FCC’s jurisdiction, such as building the Sears Tower in Chicago, and easy to point to things that lie squarely inside the authority of the FCC to regulate (such as media ownership limits), there is also a middle ground of things that are rather murky. In a case such as this, where interested parties have submitted a mess of evidence that raises questions on a matter that potentially impacts millions of people getting access to diverse programming, I think the FCC ought to go ahead and have an inquiry.

Stay tuned . . . .

Apparently, I Am Even Less Influential Than I Thought . . . .

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Or so says Paul Kapustka with his list of “Top Ten Net Neutrality Influencers”, on which I do not rank even an honorable mention.

Tip of the hat, however, to friend-of-the-blog and occasional sparring partner Richard Bennett included in the honorable mention slot.

On the plus side, no one will care if I take Wednesday and Friday off.

Stay tuned . . . .

Guest Post: Bailout Or Bust

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I’m pleased to post a guest blog posting from Professor Alan L. Feld of Boston University School of Law. Two disclaimers are in order. First, the views expressed herein by Prof. Feld are his own, and not those of B.U. Second, he is my Dad — a matter on which I am quite pleased and proud.

For his position on the proposed auto industry bail out, see below . . . .

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Update: Cable Cos Respond, FCC Reviewing.

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To update on the question of whether cable companies think they are above the law. According to this piece by Ted Hearn in Multichannel News, all 13 cable cos responded to the FCC’s letter of inquiries (LOIs) issued in response to the consumer complaints. The FCC is apparently now reviewing the adequacy of the response.

Mind you, according to the article, we are still likely to find that the cable cos responded in a less than thorough way, and will necessitate the FCC coming back with another request. But this is merely the usual fun and games by which large companies avoid obeying the law, rather than an outright statement of defiance that the law simply doesn’t apply to them.

I suspect the cable cos will do their best to run out the clock, in the hopes that the next FCC will be more tolerant of their exercise of market power. Whether that is true or not (and it will certainly NOT be true if either Adelstein or Copps is chair), I would hope that all the FCC Commissioners, but especially the two Democrats, back Martin on this investigation and make it clear to the cable cos they will not tolerate any efforts to run out the clock.

As President-elect Obama observed at his first press conference: “The United States only has one President at a time.” Similarly, the FCC has only one Chairman at a time. Certainly when it comes to investigating consumer complaints, all FCC Commissioners need to stand united in making it clear to industry that a time of transition is not a time when you can get away with screwing consumers.

Stay tuned . . .

Obama FCC Transition Team Now Includes Totally AWESOME Additions!!!!

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Good news right before Sabbath kicks in. According to this article, Obama’s FCC transition team will now include Susan Crawford and Kevin Werbach!!!

These are not just people who “get it.” These are people who “got it” waaaaayyyyyy ahead of the curve. They are also so totally not captured by any interest — but are also sufficiently “mainstream” that they will not be marginalized as radical left-wing progressive cooks. (Defensive? Me? How dare you suggest it!)

Gotta shut down now before sunset, so can’t wax nearly as enthusiastic as I would like. Suffice it to say t makes a very pleasant way to close out the week.

Stay tuned . . . .

Cable Industry Flips Off FCC, Fines To Follow? Expect Other Industries to Tell FCC To [Fleeting Expletive] Off Too.

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I clearly missed a class in law school. Not once in my Administrative Law class did my professor ever tell me that you could respond to a federal investigation by telling the agency “We know you have authority, but we’d rather not answer these questions because you are a great big meany.” But then, I’m not working for the cable industry, which has repeatedly shown it has trouble with the concept that federal law really applies to them and that the FCC is supposed to be a regulator not a lap dog.

Today’s episode of “I Can’t Believe The Chutzpah” comes from the ongoing investigation by the FCC over whether cable operators are using the confusion around the DTV conversion to push users into buying digital tier service, and rent new digital set-top boxes in violation of the rules on set-top box interoperability, or just generally violating the law by changing channel line ups without notice to either subscribers or local franchise authorities, migrating stuff off basic tier without warning, or charging for additional tiers to get channels required by law to be available on the basic tier. Mind, I’d also like them to explicitly ask whether the cable guys are unfairly migrating unaffiliated channels to digital in violation of Section 616, but that’s just me.

Anyway, after getting a bunch of consumer complaints and reading Consumers Union’s letter to Congress (or at least hearing about it on NPR), the FCC sent out a bunch of letters of inquiry to the named cable companies and Verizon asking them to provide a boatload of information which would allow the FCC to determine if the consumer complaints were, ya know, true. Given that this is lots of people being potentially ripped off big time, the agency told the everyone that got a letter they had two weeks to reply.

Mind you, this is hardly an original process or unique to the cable industry. I should know. The FCC did the same thing in response to my complaint about the wireless microphone guys back in August. The FCC (also under Martin I should add) acted with similar swiftness and intensity back in 2006, when Verizon and BellSouth tried to keep charging USF fees on DSL after they were phased out. The phone companies, apparently under the same misconception that I was that even if you are a big company you actually have to obey the law, backed off. The cable companies have other ideas. And, if they get away with it, I’m sure the Bells, broadcasters, and every one else will follow suit.

So yesterday, NCTA,the trade industry for the cable guys, sent a lengthy letter to the FCC explaining that the FCC is not allowed to investigate the cable industry. They recommend that the FCC rescind the letters of investigation and, instead of having the Enforcement Bureau actually act on consumer complaints, the FCC should hold a nice, quiet Notice of Inquiry instead. Then, if Martin gets all the other Commissioners to agree, and the FCC asks nicely and without any legal compulsion to answer honestly or completely, cable operators might consider responding.

Now I just know, KNOW that there are people out there who hate Kevin Martin so much that they will decide that it is really O.K. for cable to tell the FCC to “fleeting expletive off and die,” because it is the poor helpless widdle cable guys and the evil Kevin Martin (I cannot help but observe that Verizon does not seem to have any problems complying with this request, but of course they are an evil minion of Kevin Martin, or the other way around. Besides, Kevin Martin hates the cable industry, so there!)

As what is often called a “consumer advocate,” I’m a little alarmed that we will now have a new doctrine that says “consumers can complain, but the FCC can’t protect them if we think the FCC Chair might enjoy it.” And while I would flippin’ think that the idea that the cable companies need to obey the law like everyone else would be bloody self-evident, not to mention that the consequences of letting industry dictate to the federal watchdog agency what it will and won’t respect on enforcement go well beyond the poor picked on widdle cable guys to whatever industry you don’t like (in my case, wireless microphone manufacturers — I can hardly wait for Shure to refuse to cooperate with the FCC next), I long ago learned that even bloody obvious things need explaining when it comes to the cable industry and their rabid defenders.

So I address the actual legal issues below . . . .

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John Boehner and Conservatives In Exile Make Cakes For The Queen of Heaven; New Generation Dems Prepares To Blow Trumpets and Bring Down Walls.

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Recognizing that some professed conservatives in Congress have some trouble remembering all that “Old Testament” stuff, allow me to clarify the reference. At the end of the Book of Jeremiah, the Babylonians come and do everything Jeremiah predicted would happen if the Children of Israel didn’t stop all their idolatry and oppressing the poor and the helpless, i.e., they destroyed the Temple and took King Zedekiah and a greater part of the people into exile. After the assasination of the Jewish Governor Gedaliah, the remaining remnant of the people hit a new low and — against the express command of God as relayed through Jeremiah — flee down to Egypt. Because the people are basically total a–holes, they drag Jeremiah down with them.

Once in Egypt, God sends Jeremiah with a final prophecy in which he reviews all the times God warned the Israelites to turn away from their idolatries — notably the worship of the “Queen of Heaven” — and how each time Israel refused. God patiently moved from warnings to punishments, and still the people stubbornly refused to repent. In fact, they got worse. Now they have come down to Egypt as pathetic refugees suffering a miserable existence, and God is going to give them one last chance to learn their lesson or “He will give unto them the Bitch Slap Of His Wrath so hard they shall not knoweth whether it be Sabbath or the Day of Atonement.” To Jeremiah’s astonishment, the people give him a big “F-you! What the heck do you know anyway? You radical far left prophet you!” Rather than amend their ways and repent, they tell Jeremiah:

“It is only since we have ceased to burn incense and make offerings to the Queen of Heaven that we have known want, and died by the sword and by famine. And when we burned incense, and poured out drink offerings, and made cakes to the Queen of Heaven, were not our men then with us?”
— Jeremiah 44:18-19.

Or, in other words, the lesson the exiled Israelites learn from suffering defeat after defeat, humiliation after humiliation, is that Jeremiah can’t possibly know what he is talking about and the only way to finally win is keep doing exactly the same thing, but even more so. And, if possible, be even more obnoxious about it.

Connection back to today’s politics below . . . .

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Matt Stoller Interviews Me Over On OpenLeft

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As anyone reading the sidebar can tell, I’m a big fan of the folks over at OpenLeft. So I was extremely happy when Matt Stoller asked to interview me on what the November 4 white spaces vote at the FCC means for the future of media and telecom policy.

You can find the interviews here:

Day 1: Broadband and Breaking Up Telecom/Cable/Broadcast Monopolies.

Day 2: Real Use Anywhere ‘Skype-style’ Phone In The Offing.

I have no idea if the Obama people — or anyone else for that matter — agree with me on this stuff. The views expressed in the interviews are my own, just like any other time I talk to the press. In particular, I am pretty sure no one else agrees that our priority should be to “crush monopoly incumbents, drive them before us, and hear the lamentations of their shareholders.” “have a strong national broadband policy that includes federally funded fiber-to-the-home and greater access to federal spectrum for intelligent devices.”

But I hope we can persuade them to agree with me.

Stay tuned . . . .