And People Ask Me Why I Don't “Trust the Market . . . .”

From recent headlines:
Now that the FCC hearing in Standford is over, Comcast had dumped the idea of a consumer “bill of rights” for consumers. Instead, apparently picking up on Commissioner McDowell’s confusion over ICANN and how it works, Comcast has announced it is joing the Distributed Computing Industry Association (DCIA). While purportedly eager to include us regular folks in the dialog, consumer interests will not be represented in the initial discussions.

Comcast also is looking at bandiwdth caps, but that’s in addition to “managing” p2p, not instead of managing p2p.

Meanwhile, Earthlink is apparently walking away from Wireless Philly, and may simply shut the system off unless the city buys it out.

And folks ask me why I don’t “trust the market” when I am skeptical that big companies will stick by their commitments….

Stay tuned . . . .

Reserving Judgment on Sprint/Clearwire/Google/Intel/ForcesofDarkness Deal

“Whoever fights monsters should see to it that in the process he does not become a monster. And if you gaze long enough into an abyss, the abyss will gaze back into you.”

Obligatory Cliche Neitsche Quote

When last we left Sprint, the wily temptress of the airwaves, she was languorously sighing while apparently choosing between her old suitors (refugees from Spectrum Co. Comcast, Time Warner, and Brighthouse) and her new suitors (Google and Intel). Now, according to this announcement, the ever outre and winsome Sprint has decided it is too much trouble to choose and that — like some French comedy — they will live happily ever after in some carefree, open spectrum menage a cinq. Google, as has become its want, explains on its blog how this signals a new era in which all Americans will enjoy a third wireless pipe, open applications, and — no doubt — greater independence from foreign oil.

Well I hope so. But after seeing Google break my poor little heart in the 700 MHz auction after I was so utterly convinced they would bid to win, I am very definitely reserving judgment here. Because while I keep hoping that this is all part of Google acting to alter the wireless world by making it more open, I cannot overlook the possibility that this is the world of giant corporate incumbents altering Google to be less of a threat. So even though Google is saying all the right things, I’m going to wait to see the FCC applications before I start jumping up and down for joy and declaring this a huge victory. Because electronic press releases mean squat compared to whether the applications for the new “Clearwire” entity contain provisions that provide the same level of openness as the C Block Conditions or the Skype Petition.

More below . . . .

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Worsht Ex Parte Ever: I Gloat Over Latest D.C. Cir. Case on a Procedural Point

One of the constant irritants for me and others trying to follow what happens at the FCC is the problem of “the too brief ex parte.” Under the Commission’s rules (47 C.F.R. 1.1200, et seq), when a party meets with FCC staff on an open proceeding, the party is supposed to submit into the record a written statement providing a summary of the conversation. This is called a “notice of oral ex parte presentation” in FCC-speak, but we usually shorten this to just ex parte. By rule, the ex parte should provide a reasonable explanation of what took place so that a reader can get a sense of the argument made (although you can refer back to a previous filing to avoid repetition). In practice, however, you usually get nonsense like this piece of garbage from Alltel which wins the Comic Book Guy Award for “Worsht Ex Parte Ever.”

So it was with a considerable amount of schadenfreude that I saw the D.C. Circuit whomp Sprint/Nextel for producing crappy ex parte‘s that failed to provide a record of their no doubt numerous detailed conversations with Commission staff. This failure to leave a record resulted in dismissal of Sprint’s case and may cost it many billions of dollars.

More gloating below . . . .

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MAP Brings DC To The Valley

Time for a shameless plug for my employer, the Media Access Project (MAP).

As long-time readers know, one of my frequent complaints is why don’t folks whose lives depend on the rules made in DC bestir themselves and get active on the policy front. All it takes is a web browser and a docket number, after all. Why don’t we see more Silicon Valley folks, VCs, and others show up at FCC proceedings.

Answer, they live as much in their own isolated bubbles as the DC folks do. If you are out in Silicon Valley, odds are good you rarely think of DC as having any relevance to your life and there is not going to be anyone or anything around you to tell you otherwise.

Well rejoice, lucky Silicon Valley people (and whoever else wants to make the trip out)! Media Access Project is sponsoring a series of policy forums (fora?) in Silicon Valley, wherein we will bring the D.C. policy world to you. And, lest you think this is some sort of socialist cult-like retreat wherein we will brainwash you with our public interest ways, we are working with big corporate partners like AT&T and eBay to assemble panels that present a wide variety of views. The primary purpose here is to get folks actually thinking about policy and why it is important for everyone to participate in the process. Think of it as a kind of “Rock the Vote” for Silicon Valley.

In any event, details below.

Stay tuned . . . .

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What Does Cablevision Want With Newsday? And Should I Care?

For a business supposedly on the edge of extinction, newspapers attract an odd assortment of newcomers eager to get in on the game. Real Estate billionaire Sam Zell bought Tribune last year, marking fresh blood coming into the newspaper and broadcasting biz. Now, as Zell sells off some chunks of Tribune to to pay down debt, it would appear another new player is poised to enter the game.

According to this story, NYC based Cablevision has beat out Rupert Murdoch for the Daily News. Unlike the Murdoch deal, this would not implicate any FCC rules and should not raise too many hackles on the antitrust side. Arguably it has an impact on the local advertising market, but hardly enough to make a difference. Besides, I’m not sure if there is any evidence that the newspaper advertising market and the cable advertising market are related.

What is more interesting is “why does Cablevision want Newsday at all? And should I care?” Cablevision has in the past tried to break out of its main business as a cable operator and dabbler in cable programming and owner of various sports venues and franchises. At various points, it has tried to launch a satellite service and was a bidder in the last two major FCC spectrum auctions (coming away empty handed both times). Is this a toe in the water to go into the newspaper business or a more limited foray?

It is interesting to note that a few years ago, Cablevision was sued by the Jets over an alleged effort to block the Jets from building a sports stadium that would compete with those owned by Cablevision. Among the charges, the Jets claimed that Cablevision routinely gave its own front group free advertising time on its cable systems to drum up support against the Jets’ stadium effort, while refusing to sell advertising time to the Jets for pro-stadium advertising. Owning Newsday will certainly give Cablevision a bit more political clout in its backyard should it find itself wanting to lobby local government again. While I don’t think that’s the primary reason for Cablevision buying Newsday, it does make for an attractive bonus from Cablevision’s perspective.

Unfortunately, I think only DOJ or the FTC will examine the acquisition. It doesn’t trigger either FCC rules or local franchise review. But this sort of impact on the diversity of news sources and the ability to leverage ownership of different media assets for political gain falls outside antitrust review — even in an administration that cares about antitrust. So for better or for worse, barring some new bidder emerging, I expect the deal to sail through easily.

Stay tuned . . . .

Follow Up On Medical Devices: Smarter Devices And Smarter Policy, Not More Bandwidth

So I’ve been following up more since initial post yesterday. As a general matter, I recommend interested readers start with this piece from the FDA’s website, followed by the FCC’s Office of Engineering and Technology (OET) FAQ on wireless medical telemetry devices and the digital transition. OET does not see this as likely to cause a big deal because there’s plenty of empty “white spaces” out there after the digital transition and users can adjust their devices as digital televisions come online.

Well, I hope they are right about that, although I’d feel a lot better if someone were responsible for actually keeping track of this and making sure that users get informed. Under the rules, there are notification requirements for when a station goes live with its digital signal so hospitals can make changes. That works as long as folks are paying attention, of course. In any event, in case OET is looking for more work (or someone on the Hill wants to step up), I would suggest that it would be awfully nice to know what the state of the industry is. But I suspect the right place to do that is really the FDA not the FCC, or perhaps the U.S. Department of Health and Human Services.

But there is a broader lesson here. As with wireless microphones and a host of other specific low power applications, the real problem is not capacity. The problem is that we have a legacy system that slices spectrum uses into these discrete little services rather than allowing general low power unlicensed use and using cognitive radios to avoid interference.

Hospitals provide a particularly useful environment for smart devices, because they have so many noisy devices, sensitive devices, and such an expanding need for wireless devices for medical telemetry. Imagine a device that works equally well in all locations of the hospital without putting other systems at risk because it senses and adjusts for its radio frequency environment in a real-time basis. If another doctor starts up a device in a neighboring bed that is noise generator, the device monitoring my patient will move to a clear frequency. Devices and systems could even be tagged for priority, so that a mobile monitor attached to a patient knows that it must give the “right of way” to the cardiac ward systems if they come into conflict.

But more specifically here, there is nothing that existing wireless medical telemetry devices authorized in the band do that could not be replicated more flexibly and at lower cost by authorizing generic low-power white spaces devices. This is essentially the same problem as with wireless microphones. If wireless microphones had never received a special dispensation to function in the broadcast white spaces as a licensed ancillary service, you could replicate these systems with unlicensed white spaces devices. But, like the QWERTY typewriter, they are an embedded technology. And they have a constituency that, quite logically, resists change and argues that it plays an important role that generic devices could not replicate.

We thus have the irony of everybody agreeing there is “plenty of white space” for existing secondary users like wireless microphones and medical telemetry, but supposedly no room for the next generation of devices that could do the job of both technologies and bring us a host of other applications besides. We could cure this with more powerful cognitive radios, but the same natural conservatism by incumbents against any intrusion in “their” spectrum makes any movement in that direction politically difficult (as demonstrated by the FCC terminating two promising proceedings last year).

We therefore have the classic political and collective action result of fixing the wrong problem, at least from a public policy perspective. Rather than expanding wireless use generally, we make the new, more useful generic technology subordinate to the existing stakeholders. It is rather like what would have happened if harness makers and farriers had been able to demand that automobiles must protect their industries before being allowed to share the road with the horse and buggy.

Hardly a new problem or an original observation, I recognize. This has been the lament of spectrum reformers since five minutes after the first licenses were issued and the rest of us got cut off. Still, I keep hoping that this time around we’ll manage to get the right result and not let the embedded old technology trump the next generation of users.

Stay tuned . . . .

Paging Hospital Techies: You Have Bigger Worries Than White Spaces

CNET has this story about how “Hospital Techies” (notably medical monitor manufacturer GE) are worried that white spaces devices will mess up their medical systems.

Bluntly, “hospital techies” have bigger problems. As the CNET article observes, but lightly passes over, some unknown number of hospitals are using legacy medical monitoring equipment that will stop working after the digital transition. So while the odds of white spaces devices (WSDs) interfering with actual medical equipment on the approved set aside, Channel 37, approaches zero, and WSD interference with legacy equipment is equally unlikely, we may face a total meltdown in poor hospitals of medical monitoring equipment.

Rather than waste time on white spaces, I would say manufacturers like GE Healthcare need to start working with the FCC (and Congress) to engage in a massive education and outreach effort equal to what the FCC has done with the NAB and retailers to educate the public. That means stop selling any legacy equipment, require manufacturers to notify customers that have legacy equipment that it may stop working, and find out how many hospitals are likely to lose medical monitoring equipment after the DTV transition happens. A little funding from Congress to help poor hospitals that can’t afford to upgrade wouldn’t hurt either.

But worrying about white spaces is like worrying about whether a candle will blow over when a brush fire is bearing down you. Unless folks wake up to the danger, we may get seriously burned.

More analysis below . . .

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It's Nice When the FCC Listens Part II — The Cyren Call Investigation Is Out.

When it rains, it positively pours. The FCC just released its Inspector General Report on whether Cyren Call screwed up the D Block. As readers may recall, I and my friends from the Public Interest Spectrum Coalition (PISC) sent a letter to the FCC as soon as the auction ended, asking the FCC to investigate the allegations over whether Cyren Call scared away D Block bidders. To his credit, Martin referred our letter to the FCC’s inspector general. The IG did a quick and thorough job, which you can read here. I shall add that it always gives one pause to find oneself as a subject heading in an IG report.

Generally, I’m satisfied with the report, which confirms my own suppositions after the anticollusion rules lifted and Cyren Call started yapping. Critically:

1) The meetings took place;

2) They were understood by all participants to be business negotiations, not “take it or leave it” demands;

3) The lease payment itself was not a deal breaker, but the potential bidders interviewed said that so many questions about potential financial liability and business model remained — aggravated in part by the uncertain role of Cyren Call — that they opted to stay away (or, as the IG concludes “this was just one drop in many different buckets”);

4) No FCC rules were broken and no one acted in bad faith, therefore there is no need for a referral for any criminal investigation.

Personal reflections below . . . .

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It's Always Nice When The FCC Listens

A few months ago, fellow Wetmachiner Greg Rose and I wrote a wrote a white paper on how to improve the FCC’s processes, make FCC rulemakings and proceedings more accessible to the public, and generally increase the legitimacy and reliability of FCC decision making. As one relatively easy change, we suggested the FCC post the agenda for open meetings far enough in advance that people can come in and make their last pitches to the agency before “Sunshine” (the period when communications stop under the “Government In the Sunshine Act”) kick in. As we explained, providing the agenda at the last second often advantages insiders who hear when an item is likely to go on the agenda, who therefore rush in while those who don’t know the item is going on Sunshine will lose their last chance to rebut arguments or press their case.

So it was pleasant to see Chairman Martin announce that from now on he will publish the likely agenda 3 weeks in advance. That should be a big help to everyone — including the other Commissioners, who will not suddenly find themselves with a week to digest an agenda of a dozen items.

Yes, it is a relatively minor change, but it is important in two ways. First, practical details really do matter. That sometimes gets lost in the fight over specific substantive issues. Second, it demonstrates a willingness by Martin to listen to criticism and take action — at least on the low hanging fruit. Such things deserve notice and suitable (although not overly elaborate) praise. Remember, public policy is made by human beings, and you get what you reward.

Stay tuned . . . .

American Radio Relay League v. FCC, Why A Good Case Will Bring Confusion And Bad Results

I should be overjoyed with the D.C. Circuit’s latest case: American Radio Relay League v. FCC. First, it affirms the right of the Commission to balance between unlicensed Part 15 users and licensed users, even where operation of Part 15 certified devices/services will cause occasional interference to traditional Sec. 301 licensees. Second, it requires the FCC to publish staff reports on which it relies in their entirety, rather than merely including in the record the parts with which it agrees. Third, it requires the FCC to address proposals by commenters with something more substantive than “well, we’ve always done it this way, so we see no need to change.”

All good news, yes? As a legal matter, absolutely. But as a practical matter, I expect it to slow down movement on the FCC’s white spaces proceeding. Why? Because it was a reversal and a reversal almost always causes the good folks in the Office of Engineering and Technology to go into paralysis for a few months while they try to figure out what the new legal standard is now. That the court actually affirmed the critical part on respecting the FCC’s balance between Part 15 and traditionally licensed services is likely to get lost in the noise — especially as we can expect NAB and other white spaces opponents to dwell on the reversal aspect and ignore what the court actually said. And, in the short term, OET now has to figure out how to issue a report on the WSD testing that conforms to the D.C. Circuit’s standard of disclosure. While I, lawyer and advocate that I am, consider this simply an exercise in “tell the truth and shame the devil,” we can expect that opponents will press their own reading of the case and that OET (and FCC’s Office of General Counsel) will now have the difficult and potentially time consuming task of deciding on the proper interpretation.

So a good case in fact, but more delays while the agency digests its implications.

More below . . . .

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