Tales of the Sausage Factory

An insider’s view of the media hegemony

Oh, those witty JP Morgan Guys, Pissing on Little Timmy Geithner

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JP Morgan Exec mocks Treasury Sec for bailout money.

To which I cannot help but respond:

I am glad Mr. Dimon is so pleasant with us;
His words and his sneer, I thank him for:
When we are next met in Congress assembled,
We will, by God’s grace, pass such a bill as
Shall send his wits into the hazard.
And we understand him well,
How he comes now with memory of wilder days,
When he did reign as Prince untouchable
And those set to guard against his excesses
Catered to his whims and kept him safe against all
Accountability that had once been law.
What wonder when, having supped so freely and so long
at public feast, that he should task us so
for daring to restrain his monstrous appetites?

So tell the pleasant prince this mock of his
Hath turn’d his balls to gun-stones; and his soul
Shall stand sore charged for the wasteful vengeance
That shall fly with them. For I swear
His jest will savour but of shallow wit,
When his colleagues weep more than ever they did laugh at it.

(With apologies to Henry V)

I do hope the folks at Treasury who fought so hard to restrain the “radical” demands that public money have some conditions attached take note of how grateful their financial sector “clients” are for their services.

Stay tuned . . . .

Republicans Finally Make FCC Picks. McDowell and Baker to Take R Slots. Now Can The Senate Please Get Everyone Confirmed So We Can Get To Work.

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At long last, it looks like the Senate Republicans got their act together enough to settle on two FCC candidates: Current Republican FCC Commissioner Robert McDowell and former NTIA Administrator Meredith Atwell Baker. While I expect a fair number of policy fights, I also expect to see this group weighing matters fairly and searching for common ground.

I’m hopeful this can clear the Senate before July 4 recess. The FCC has a pretty big agenda, starting with the National Broadband Plan (yes, February 2009 may seem far away, but not for this), continuing through finishing up on white spaces and wireless microphones, FCC Reform, ownership, network neutrality, etc., etc. Be nice if the Senate also confirmed Larry Strickling for NTIA. Finally, if we really want to get things moving, the Senate Agriculture Committee should schedule a hearing for Adelstein’s appointment to head up the Rural Utility Service now (they don’t have to wait for him to be off the FCC to have a hearing on his nomination to RUS) so he can be confirmed in a group with everyone else.

A bit more on Baker and McDowell below . . .

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Important DC Cir Opinion on Boring Procedural Stuff for the FCC,And Why We Should Care.

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Every now and then, the fact that I am a lawyer leaks through here. OK, it leaks through a lot — including my insatiable tracking of the minutia of the D.C. Circuit and how it impacts things FCC.

Which brings me to last month’s opinion in Globalstar, Inc. v. Federal Communications Commission. In the grand scheme of things, this decision only impacts two companies, Globalstar and Iridium. What makes the decision important is that it addresses the scope of a Petition for Reconsideration and whether a Petition for Recon re-opens the entire docket. Along the way, it once again admonishes parties about relying on ex partes to build an administrative record, which may actually breathe some life back into the procedural rules at a time when every FCC proceeding is “permit but disclose.”

More importantly, this case illustrates that the details of this stuff matter — not just in telecom but in all aspects of regulatory reform. If we want a real progressive movement, we need to nurture our own special teams in every policy area that follow the day-to-day mundane and prosaic details that make the difference for effective advocacy on the big ticket items.

So for all you procedure buffs out there, continued below . . . .

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Very Interesting Map Of Comments In BB Stimulus Proceeding

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In my capacity of consulting with the Benton Foundation, I have been doing work with Kate Williams, a professor of informatix at University of Illinois. Williams has been doing some (IMO) critical work around broadband sustainability. In particular, Kate has been studying the old Technologies Opportunity Program to determine which projects had lasting impact and which didn’t — a rather important consideration for the new and improved BTOP program.

But what caught my attention recently is this very interesting map that Williams compiled based on the comments submitted to BTOP. It places the comments filed on a geographic map, with links to the actual comments themselves. The map includes the 58% of comments filed by the April 13, 2009 deadline which contained reliable information on the location of the commentor. The remaining 42% either gave no location or included location in an attachment which Williams considered insufficiently reliable to determine location.

Why do I find this interesting? Because it potentially provides a very interesting cross check on the state of broadband geographically, as well as who follows these proceedings. I have long lamented that the FCC (and other federal agencies) make so little use of the data they actually collect. At best, an agency may note submission by a class of commentors (e.g., broadcasters, MVPDs, ISPs) in the specific proceeding at issue. But no one tries to take the multiple data sets collected as comments in each proceeding, or in multiple proceedings, and tries to determine patterns and what they might suggest. williams grouping by geography is intriguing, and I cannot help but wonder what would happen if we applied a similar analysis to multiple FCC proceedings — including for comments generated by mass “comment engines” that have become common in some high profile proceedings. It would be very interesting to know, for example, if the people feeling passionate enough about media consolidation or network neutrality cluster geographically and, if so, do we see patterns of geographic interest which might tell us about the actual situation on the ground.

Of course the sampling from comments is not a pure scientific data set in that to comment, a commentor must (a) know about the proceeding, and (b) feel strongly enough to file comments. But the fact that the information has a particular set of biases does not render it meaningless, especially if one controls for this.

I hope researchers use Williams’ map, both to analyze the BTOP comments and as a model going forward for analysis of other proceedings.

Stay tuned . . . .

FCC Begins Inquiry Into Arbitron Portable People Meter

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Sometime back back, I noted the flap over the Arbitron Portable People Meter and the Petition by the Minority Media Telecommunications Council (MMTC) for the FCC to take action. The FCC put the Petition out on public notice last September, and has now issued a Notice of Inquiry on the matter.

As always, the questions are (a) why do we care about this? and (b) Even if we care, does the Commission have authority to do anything? In answering this last time, I observed: (a) we care because the entire economics of the radio industry are driven by ratings, and the FCC’s own rules rely on Arbitron ratings for a number of purposes, and (b) the FCC can always investigate anything related to its areas of jurisdiction. At worst, it provides a good forum for debate and an opportunity to tell Congress “Yo! this is important, somebody needs to do something about this for these reasons.” these are pretty much the conclusions the FCC comes to in its Notice. After observing in footnote 1 that it has broad powers to investigate, the Commission frames the questions as:

This NOI investigates the impact of PPM methodology on the broadcast industry as well as whether the audience ratings data is sufficiently accurate and reliable to merit the Commission’s own reliance on it in its rules, policies and procedures.

I am hopeful that we see a good, robust debate here although I don’t expect anything in the way of Earth-shattering revelations. There is an interesting problem of what information Arbitron will reveal about its processes, and whether the Commission will provide some assurances that it will keep proprietary information out of the public record. If it does, it makes it much harder for those who say the process is unfair to respond. But if it doesn’t, it’s analysis is going to be incomplete.

Mind you, it’s not at all clear what authority the FCC has over Arbitron directly. But the FCC can take certain actions if it doesn’t like what it sees, giving Arbitron incentive to play and try to resolve concerns. The FCC can declare Arbitron unreliable and no longer rely on it for regulatory determinations. That’s not exactly the kind of publicity you want if you make your living based on the accuracy of your ratings system. Alternatively, if the FCC doesn’t see anything wrong, it can always conclude that Arbitron remains acceptable for the FCC’s purposes. That will be of enormous assistance to Arbitron in removing any cloud over its rating system.

Bottom line, the NOI is a smart move by the Copps FCC on multiple levels. It doesn’t assert any authority, it doesn’t prejudge, and it services an important Democratic constituency. Hopefully, Arbitron and its critics will use the FCC as a neutral forum to develop an mutually acceptable solution.

Stay tuned . . . .

Wherein I Succumb to My True Nature and Review The Latest Trek Film

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Regular readers will not be surprised that I consider the release of the new Star Trek directed by JJ Abrams as infinitely more important than the usual subject matter of this blog. Unable to resist my true Trek nature, I will indulge myself in venting an unfavorable, spoiler-laden review below. For those who get the reference (and therefore have the level of “nerd cred” necessary to enjoy this), I can’t help but thinking of this as “Crisis of Infinite Enterprises.”

I promise to get back to hardcore policy next time.

Spoilers below . . .

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What We Learn From the VZ-Frontier Deal

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Verizon is selling 5 million access lines to Frontier. I expect the deal will go through — after all, a dominant carrier is getting smaller, there is no place where VZ and Frontier compete, etc., etc. What makes the deal interesting is what it tells us about the problem of relying on ILEC/Cable competition to drive broadband. Briefly, (a) we will be perpetually without fiber in a lot of places if we are going to wait for cable and ILECs to meet our needs; and (b) the real problem for is not just the high cost of deployment, but the need to show high rates of return to keep Wall St. happy. It is this latter that will keep telecom policy a very unhappy and complicated place unless we get out of our usual silos and start thinking about some holistic solutions.

More below . . . .

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CellAntenna Still Plugging Away on Cell Phone Jamming — And Why They Must Not Succeed.

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I’ve been following the adventures of CellAntenna, the company that wants to sell cellphone jamming devices in the U.S., for awhile now. As lots of folks would love to jam cell phones — from hotels that hate losing the revenue from charging for use of their phones to theater venues that want customers to enjoy the show to schools trying to tamp down on texting in class — you would think there would be lots of these jammers on the market. The problem, of course, is that Section 333 of the Communications Act (47 U.S.C. 333) makes cell phone jamming illegal. Just in case anyone missed this rather straightforward statutory prohibition, the FCC officially clarified that Section 333 means “no cell phone jammers” in 2005.

Enter CellAnntenna, determined to sell cell phone jammers legally. If you are going to develop a legal on something illegal, you either need something real clever (like magic cellphone blocking nanopaint), or a strategy for changing the law coupled with the sort of stubbornness that does not mind slamming into a brick wall 99 times because you might dent it on the hundreth time. CellAntenna has apparently followed this later strategy — and may be making some headway.

CellAntenna initially tried to get courts to declare Section 333 unconstitutional. So far as I can tell, that’s going nowhere. Next, and far more successfully, CellAntenna has recruited prisons to push the idea that only cellphone jammers can resolve the problem that prison security sucks rocks. This has prompted a bill to create a “prison waiver” exception to Section 333 (House version here) and a raft of credulous stories like this one that prefer to ask “isn’t it awful that we can’t jam cell phones” rather than ask “what the $#@! do you mean we can’t secure our ‘maximum security’ prisons?”

I explore the issues, and why I think creating an exception to Sec. 333 would be a big mistake, below . . . .

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Republican Bill To Reform FCC Not A Bad Place To Start Discussions.

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There’s an old saying that goes “when it rains, can’t fix the roof; when it don’t rain, the roof don’t need fixin.’” That rather sums up most efforts at government reform. When you’re out of power, you can’t really do anything about it. When you’re in power, it turns out things don’t really need fixing. So no shocker that Joe Barton (R-TX), ranking member of the House Energy and Commerce Committee, joined by Mr. Cliff Stearns (R-FL), ranking member of the Telecom Subcommittee, have decided to introduce an FCC reform bill now that (a) Democrats control Congress, and (b) Democrats control the FCC. You can find the press release here and the full bill text here.

If political expediency were a mortal sin, however, nothing would ever get done. So it is not enough to simply note that politicians of either party are more apt to want reform when they are on the outside. It is important to examine the bill in its own right. Given that a lot of folks in both parties and in the public interest community would like to see some longstanding issues corrected, and I have opined on the matter myself from time to time, it’s important to consider whether the Barton-Stearns bill makes a good start and a basis for going forward. Remember, we want functional government. If out of power Rs are now in the mood to address real issues and get substantive stuff done, the thing to do is make it easy for them to work together with Ds. Perhaps it will become a habit. OTOH, as Ds have learned over the last several month, agreement for the sake of agreement is not worth doing.

My personal feeling after a quick read is that this bill is not a bad place to start on some long-standing procedural gripes, but that there are a couple of things that worry me.

Details below . . . .

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FCC Announces 2.5 GHz Broadband Radio Service Auction. Who Will Show Up to Fight Over Rules? Or Bid?

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One might think from the press coverage that all spectrum auctions are multi-billion dollar affairs like the AWS-1 Auction in ’06 or the 700 MHz Auction in ’08. But these auctions are the exception rather than the rule. More typical are the steady stream of small auctions like Auction 78, which auctioned remaining licenses in the AWS-1 band.

Which brings us to the Wireless Bureau’s Public Notice of the Broadband Radio Service (BRS) auction. Some of us have followed the adventures of the 2.5 GHz band back when it was “Wireless Cable” and the non-commercial licensees used it to offer closed circuit television for what we now call distance learning. These days of course, we know this as the “Broadband Radio Service” (BRS) and the “Educational Broadband Radio Service” (EBRS), and we care about the 2.5 GHz band as the home of Clearwire and the great hope of WiMax.

You might think that the “WiMax” auction would be a big deal — but only if you don’t know the band, its history, and the inventory up for auction. If you know that, you know why this auction is likely to prove as boring but ploddingly necessary as a run for office supplies.

So why do I consider this worth blogging about, other than my sentimental fondness for the band and my general obsession about things spectrum? Because (a) my cause celebre, anonymous bidding, faces its first post-700 MHz challenge, and (b) 2.5 GHz is the home of the major WiMax plays, and what happens in the auction has the potential to shape the field going forward and influence whether deployment goes more smoothly or gets all bollixed up.

More detail below . . . .

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