My Insanely Long Field Guide To Understanding FCC Chairman Tom Wheeler Statement On Peering.

At the press conference following the Federal Communication Commission (FCC) March 31 Open Meeting, Chairman Tom Wheeler made the following observation:

 

“Interconnection is part of the Network Compact.” Peering “is just a $3.50 word for interconnection.”

 

Wheeler followed up this statement by explaining that there was a difference between “network neutrality” and the “open internet” on one hand and “interconnection” as the ‘path to the Internet’ on the other hand. While government has a critical role in monitoring peering/interconnection to protect the values of the Network Compact, it isn’t a network neutrality issue. You can see Wheeler’s full statement here (Start at 144:45 – 147:23 has unrelated stuff in middle) (transcript here).

 

After the meeting, the FCC released a separate statement that they really mean it when they say that they aren’t going to do peering as part of the Net Neutrality rules. While Brendan Sasso at National Journal gets points for noticing that “the FCC could decide to enact separate regulations on the issue or force Comcast to accept new rules in order to receive permission to buy Time Warner Cable,” most folks I’ve read in the press have broadly interpreted this as indicating the FCC will not look into the Comcast/Netflix dispute or complaints by Cogent and Level 3 about large edge-providers squeezing them for higher interconnection fees.

 

Personally, I think most people are totally misreading this. Wheeler’s statements make it look more likely to me that the FCC will start looking closely at the Internet peering market, not less likely, especially as part of the Comcast/TWC deal. Indeed, Comcast’s Chief Lobbyist David Cohen, who ranks in my book as one of the absolutely smartest and most effective telecom lobbyists ever, has already started backing away from earlier statements that regulators would ignore peering issues and that he expects them to look at the Comcast/Netflix deal. (Unsurprisingly, Cohen also said he expects regulators to find no problems with the deal and called Netflix CEO Reed Hasting’s arguments that this eviscerated net neutrality “hogwash.”)

 

Below, I will rant at considerable length that (a) Wheeler is right, this is not a “network neutrality” issue, but the same goddam interconnection issue that we have struggled with for more than a hundred years in every networked industry from railroads to electricity to broadband; (b) The FCC needs to actually look at this and study it and understand how the market works before it makes any decisions on what to do; and, (c) While Wheeler is not saying in any way, shape or form he actually plans to do anything before he has real information on which to base a decision, he is signaling — for anyone actually paying attention — that he is, in fact, going to actually look at this as part of his overall transition of the agency around his “Fourth Network Revolution” and “Network Compact” ideas.

 

 

While this last would seem pretty basic and obvious, it represents a significant change in policy from the previous insistence that IP magic pixie dust obscures all things Internet and makes them invisible to the FCC. Whether I agree with what Wheeler ultimately does or not — and I have no idea what he might ultimately do here, he could decide the market is competitive and working just fine — I don’t believe Wheeler is going to go around with his eyes and ears covered blathering about the magic nature of the Internet. I think Wheeler is actually going to check under the hood and see what actually makes the damn thing tick — and Comcast is just the company to help him do it.

 

Much ranting below . . .

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A Guide To The Mechanics of the Comcast/TWC Deal. Part IV: Congress, The White House And The Public.

If you read most of the reporting on the Comcast/TWC deal, you would think that Congress and the White House play a huge role. In reality, as I alluded to in the Part I intro, not so much. The political stuff tends to get over-reported in part because it’s easier (it took me about 3000 words just to explain how the antitrust and the FCC review work never mind any actual reporting), and in part because everyone assumes that Washington is a corrupt cesspit where politics invariably determine outcomes.

 

As always, while the political matters, it plays a much more complicated role in the mix. Below, I will unpack how the political pieces (including public input) play into the actual legal and merits analysis. Again, keep in mind that I’m not talking about merits here. I’m just trying to explain how the process works so people can keep track over the course of the merger review (which will last a minimum of 6 months and may well run for more than a year).

 

Political details below . . . .

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A Guide To The Mechanics of the Comcast/TWC Deal. Part III: The Federal Communications Commission.

In Part II, I described how the Department of Justice will conduct its antitrust review of the Comcast/TWC. Here, I describe how the Federal Communications Commission will conduct its review under the Communications Act. While the FCC and the DoJ will coordinate their reviews and work together, the two agencies have very different procedures and operate under very different legal standards. (For those wondering why, you can see this article I wrote on the subject about 15 years ago.)

 

Details on FCC process below . . .

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A Guide to The Mechanics of the Comcast/TWC Deal. Part II: Antitrust Review

In Part I, I gave a general overview of the regulatory review process for the Comcast/TWC Deal. In Part II, I describe how the antitrust review works (which, in this case, will be conducted by the Department of Justice Antitrust Division). Keep in mind I am not discussing any of the arguments on the merits. I’m just trying to give people a sense of how the process will work and where they can weigh in if they feel so inclined.

Part III will address the review by the Federal Communications Commission (FCC) under the Communications Act.  Part IV will talk about Congress, the White House and the public.

 

Antitrust process described below . . .

 

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A Guide To The Mechanics of the Comcast/TWC Deal. Part I: Introduction

Those unfamiliar with how the merger review process works will want to know what happens next in the Comcast purchase of Time Warner Cable (TWC). In this 4 part series, I sketch out how the application will proceed and what role Congress plays in all this. I’m going to save for another time the arguments on the merits and what the likelihood is of blocking the deal (or getting stronger conditions than Comcast/TWC have already put on the table). I intend this simply as mechanical guide so that folks playing at home can follow the action, and weigh in as they see fit.

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Jessica Rosenworcel And the Mantle of Michael Copps

The Federal Communications Commission (FCC) moved forward on the transition of the phone system by adopting an order at its February open meeting. By a 5-0 vote, in addition to a number of other important first steps, the FCC adopted a set of governing principles for the transition. The principles focus on core values: Universal Service, Consumer protection, Competition, and Public Safety.

 

These principles did not just drop out of thin air.  Commissioner Jessica Rosenworcel first proposed them in this speech in December of 2012. While few have noticed, Rosenworcel continued to quietly and effectively push this framework, culminating in a unanimous vote with broad approval from both corporations and public interest groups.

 

More amazing for this hyper-partisan and contentious times, the principles capture both progressive values and conservative values, traditionally shared by Republicans and Democrats alike. The idea that access to communications services is so essential to participation in society that the Federal government has a role in making sure that ALL Americans have affordable access goes back to the New Deal and Section 1 of the Communications Act. But the basic precept is even older, going all the way back to Founding Fathers. Article I of the Constitution gives Congress the express power “to establish post offices and post roads” in recognition that ensuring that all Americans can communicate with each other is what helps make us a single country and one people — a core conservative value. As the arteries of commerce and the means of communication have evolved from post roads and post offices to steam trains and telegraphs to the automobile and the telephone, we have continued to preserve this idea of universal service to All Americans as a core traditional value of what it means to be an American.

 

But as essential and shared as these values are, no one was talking about them as the basis for the Phone Transition, or how to bring them forward into what Chairman Wheeler calls “The Fourth Network Revolution,” until Commissioner Rosenworcel started the conversation. From the time AT&T first proposed a “sunset of the Public Switched Telephone Network” during the National Broadband Plan in 2009 until Rosenworcel’s December 2012 speech, no one even talked about values – let alone proposed that a set of fundamental values needed to guide the transition. The conversation remained mired — and stalled — in myopic focus and bickering on the details of specific regulations. Commissioner Rosenworcel understood well before anyone else that the best way to move forward, and the way to keep the process firmly centered on the public interest, required reaffirming our fundamental values as the first step.

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Cell Phones On A Plane Do Not Deserve The Same Freak Out As Snakes On A Plane

So it appears people like the idea of using their tablets on planes, but not using cell phones on planes.Or, to paraphrase Samuel L. Jackson, a lot of people do not want mother——ing cellphones on these mother—–ing planes.

 

Whatever the merits of this position, however, we should not ask the FCC to use interference rules for what is plainly a social policy. To the contrary, as the Washington Post Editorial Board rightly points out, the FCC ought to have rules that acknowledge reality. Bluntly, do we really want agencies to lie to us about technology rather than simply own the social policy?

 

For those freaking out over the possibility of adding “Loud Cell Phone Talker” to the airline bestiary along with “Crying Baby Beast,” “Barfy Neighbor” and “Snoring Person That Drops The Seat In My Lap,” I discuss a few things to give you hope before you start shooting out windows to pull cell phones out of planes.

 

More below . . . .

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Will The Fed Shutdown Screw Up This Season’s Xmas Tech Toys?

No one outside the small world of telecom policy cared much that the Federal Shutdown would close the Federal Communication Commission (FCC). Other than the hope that closing the FCC would open the door for Joss Whedon to slip in some full frontal nudity and cussing on the next episode of Agents of S.H.E.I.L.D., most people don’t think of the FCC as having much impact on their lives.

 

It turns out, however, that the shut down of the FCC may very well delay the sale of new tech toys scheduled for release this Christmas season. And I don’t just mean the obviously FCC things like new cellphones. Every toy with a computer chip, every TV set, every microwave oven, and just about everything else that produces “radio frequency emissions” needs an FCC certification before it can get shipped to stores for sale.

 

Why? Because things that draw a lot of electric current that oscillates rapidly, like a computer chip, produces radio interference. If you have something that shoots short bursts of high powered radio waves, like your microwave oven (aka “radarrange oven” for you spectrum trivia buffs), you want to make sure the device won’t ‘leak’ into neighboring spectrum and cause interference with things like cordless phones. Also, if your cell phone or wifi chip gets the power jacked up too high, it can microwave your ear off or something.

 

So to keep your microwave from interfering with your cellphone, and to keep your cellphone from microwaving your face, federal law requires the FCC to certify all devices that produce radio waves (either intentionally for communication or just incident to use). Most of the actual testing is done by outside laboratories, and the process as a whole is fairly well streamlined. But with no one at the FCC to review the lab reports and process the paper work, the backlog is starting to mount and all the tech toys for this year’s Christmas season are stuck in Santa’s workshop, aka storehouses Singapore, waiting for certification so they can get to U.S. stores in time.

 

The FCC on average processes a little over 1000 applications for certification a month. They process them in the order they arrive. But not only is no one at home right now processing the ones that were already filed, you can’t file new ones. If you are a manufacturer, you now have absolutely no idea if your product will be on shelves on Black Friday. Worse, your competitor’s product could be there a week or two weeks ahead of yours, getting all the reviews and becoming The Hot Tech Toy of The Season while your product languishes on loading docks.

 

And it’s even worse for us Jewish people. Chanukah hits at Thanksgiving this year. Thousands of disappointed little Jewish boys and girls will be stuck with all the Uncool Last Year’s Models, while all their non-Jewish friends can still get the latest models on the 24th of December. Our last Thanksgivingukkah for the next millennium, ruined by the federal shutdown!

 

Will this be the Shutdown That Ruins Christmas? Or will the spirit of peace on Earth and goodwill to all men come back to Washington, and get those hardworking, lovable little federal elves back to the FCC branch office at Santa’s workshop in time?

 

Stay tuned . . . .

Why Does The Internet Innovation Association Hate The Rural Call Completion Order, Privacy, and Next Generation 9-1-1?

The Internet Innovation Alliance (IIA) became the latest trade association demanding that the Federal Communications Commission (FCC) and the states stop working to solve the Rural Call Completion problem. IIA also called for state and federal agencies to stop working on Next Generation 9-1-1 issues, apparently deciding the recent report by CalNena about the declining reliability of mobile 9-1-1 location information was nothing to worry about.  The new report preemptively called for an end to any effort to deal with the growing problem of caller i.d. spoofing and related vulnerabilities in voice-over-IP (VOIP) services. Finally, IIA demanded we eliminate the “legacy rules” that limit the ability of the government or companies to read your call records. You can read the report here..

 

Granted, the report didn’t say that explicitly. Instead, the IIA repeated what has become the standard industry refrain about how the key to transitioning our phone system from traditional technology to Internet protocol (IP) and wireless is to totally eliminate all federal or state authority over the new phone services. But it amounts to the same thing. A demand that we end the FCC’s authority under “legacy phone regulations” that allow it to address Rural Call Completion translates rather directly into consigning Rural America to telephone purgatory — especially when you give no indication of what should replace it.

 

The IIA Report is only the latest in what appears to be a never-ending series of white papers, opinion pieces and typical Washington blather on how the bestest thing we can do to transition the phone system is get rid of “legacy regulation.” Because although the market is apparently already so totally going there that we don’t need to worry about the 100 Million people and millions of small business that rely on copper (the one third of the market that still has a traditional copper line), pernicious legacy regulation is sadly holding things back so much we must eliminate it right away. Try not to think about this contradiction too hard.

 

If the IIA talking points sound familiar, it’s because they are exactly the same as those used by Verizon to explain why Voice Link was just the medicine Fire Island needed to recover from Sandy.  If we want the PSTN Transition to get the same reaction that Fire Island residents gave Voice Link, by all means let us continue down this path. If we would prefer to avoid a crash and burn that makes the opening days of the Affordable Care Act look like smooth sailing, I highly recommend industry groups like IIA stop trying to leverage this for regulatory arbitrage and start coming up with some real proposals on how to upgrade our policies while we upgrade our phone system.

 

More below . . . .

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