Tales of the Sausage Factory

An insider’s view of the media hegemony

Will The FCC Create An ICANN for White Spaces?

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Mind you, I am generally pleased with the announcement by FCC Chair Kevin Martin that the exhaustive study of possible white spaces devices by the Office of Engineering and Technology (OET) proves that the FCC can go to the next step and authorize both fixed and mobile unlicensed devices. I shall, God and the Jewish holiday schedule permitting, eventually have more to say on the subject. But I can’t help but focus on one aspect of Martin’s generally outlined proposed rules that raises questions for me.

See, I spent a lot of time back in the day working on domain name policy with the Internet Corporation for Assigned Names and Numbers (ICANN). ICANN derives its authority through control of the authoritative list of top-level domain servers (“the root zone file”). Or, put another way, the entire structure of ICANN, which now has a budget in the tens of millions and an entire cottage industry that surrounds it, is based on the fact that ICANN controls access to a list that you must have in order to get internet access.

So I’m very curious about who will control the database that will work to supplement sensing as a way to protect over-the-air broadcasting and operation of (legal?) wireless microphones. If the FCC administers this database, and makes it freely available online, then things will work fine. The FCC is already supposed to maintain such a database, because it supposedly keeps track of every license and licensees have a responsibility to keep their license information current. In practical terms, it would cost some money and effort to upgrade the existing database to something easily accessed and updated on a dynamic basis, because the FCC has let this lapse rather badly. (Not their fault, really. No one likes to pay for “back office” or “infrastructure” and it has never really risen to anyone’s priority level.) OTOH, it means that actually upgrading the FCC’s existing database, and giving broadcasters and wireless microphone licensees incentive to keep their information current, will yield benefits beyond making geo-location possible.

OTOH, if the FCC outsources this function, it will be an invitation to disaster. A database manager –particularly an unregulated one — will have every incentive to charge for access to the database. While I don’t expect anything on the scale of ICANN, the possibility for real bad results goes up exponentially if no one pays attention to this kind of detail. Will the database manager get exclusive control? Will the database manager be able to set its own fees for access to the database? How will the database manager be held accountable to the broader community? These are questions that need to be answered — either in the Report and Order or in a Further Notice of Proposed Rulemaking.

My great fear is that the FCC will treat this as the equivalent of a frequency coordination committee. But it isn’t anything like a frequency coordination committee, since the whole point (from my perspective) is to open up access for everyone and not just for a handful of industry folks who can work the process and pay the fees. Worse, if the FCC delegates this to the broadcasters themselves, it will create an incredible opportunity to hamstring the process at the critical access point.

On the plus side, perhaps we can get Susan Crawford to go from an ICANN Director to an FCC Commissioner.

Stay tuned . . . . .

Section 616: The Wheels of Justice Roll (albeit slowly) At the FCC.

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Back last November, the FCC considered reforming various rules designed to limit cable market power. While the FCC did adopt rules limiting the size of cable operators to 30% of the market and lowering the rates for leased access, the FCC failed to move forward on reform of its rules for how independent programmers can file complaints against cable operators for unfairly discriminating against them based on affiliation or lack thereof.

But now things are looking up. Last Friday, the Media Bureau addressed several pending complaints and designated them for a hearing before an Administrative Law Judge. Unsurprisingly, the NFL got the media attention, but the more typical case was that of WealthTV — and it is that case that is therefore likely to have more long term impact on the industry (not that the NFL and MASN cases weren’t important as precedent).

This doesn’t eliminate the need for an Order that would clarify how the process works and set a reasonable time table for complainants and defendants, but it does help to move things along for those who dared to trust the process by filing a complaint, and may put heart into the rest of the independent programming industry to hang in there and keep trying.

More below . . .

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A Happy New Year From The Kosher Contingent In The Sausage Factory

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Tonight, the Jewish month of Tishrei will begin. Tishrei ushers in a season of numerous Jewish holidays, starting with the ones everybody has heard of (Rosh Hashannah) and concluding with the ones people are convinced we are making up to get out of work (Shmini Atzeret/Simchat Torah). Unless you live in Israel, or it comes out as one of those years when the holidays overlap with the weekends, it tends to make for a very, very compressed month on the secular side. As a result, I expect to post a heck of a lot less than usual this month.

I just want to wish regular readers a happy New Year and trust that those of other religious faiths will forgive the hubris of those Jewish people — including me — who believe that (a) God is judging the entire world (including you guys) this Tuesday and Wed.; and, (b) the entire world hinges on our showing up in Synagogue on time to put in a good word for everyone.

And, btw, a happy Eid ul-Fitr to those celebrating that this new moon as well.

Stay tuned . . . .

Waxman Gets It Right On USF Reform –Use Subsidies To Open Networks.

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Although it doesn’t have a chance of passing this Congress, particularly with the utter gridlock over the bail out, but I gotta give a shout out to Rep. Henry Waxman (D-CA) for his targeted approach to solving the roaming problem in wireless. The proposed bill, H.R. 7000, says that any wireless provider that takes Universal Service Fund (USF) money needs to provide roaming to all other carriers “at just and reasonable rates, consistent with Sections 201 and 202” of the Communications Act. It does not require tariffing or rate regulation. It refers disputes over whether the terms are reasonable or the technology technologically compatible to the FCC, to handle under its well developed wireline procedures.

An entity can opt out of the program at any time by saying it no longer wants high-cost USF subsidy. But if you take government money, you need to provide roaming at just and reasonable rates.

And here is the kicker that makes it effective. The obligation to provide roaming applies to the entity accepting the USF, and any affiliates. In other words, if you have a rural subsidiary of one of the major carriers, then that carrier has to enter roaming agreements for its entire network. So if AT&T or Verizon are getting subsidies for “rural affiliate co.,” taking the money would require them to do roaming agreements on reasonable rates throughout their systems nationally. Don’t like it? Either stop taking public money or sell the rural carrier off to someone else who will do reasonable roaming.

I expect critics to say that this will mean wireless rural carriers will go under and the only thing to do is give wireless carriers money with no strings attached. I am dubious myself. Yes, the larger carriers may value their control over roaming to divest rural carriers. But there are plenty of mid-size carriers or small carriers willing to absorb these companies in exchange for federal subsidies who won’t mind making roaming agreements. Nor am I so convinced that the major carriers will actually decide they’d rather forgo the considerable subsidies they get now simply to preserve their control over roaming. Besides, if excluding parties from commercially reasonable roaming agreements is such an important element of the business model of major carriers, we have a bigger problem that needs to be more broadly addressed.

For too long, we’ve succumbed to the twin arguments that we must subsidize business to get policy goals, but we cannot actually demand anything in return because that would scare away the shy little beasties we are trying to coax, cajole and outright bribe into good behavior. I think it’s time to test that theory a bit. Although I’m doubtful the Waxman bill goes anywhere in the current Congress, I can hope that when Congress reconvenes in 2009 it will be reintroduced and given serious consideration.

Or instead, perhaps carriers will see the writing on the wall and try to solve this problem at the FCC before Congress reconvenes. Either way, its a good bill that nudges us closer to a more pro-competitive roaming policy.

Stay tuned . . . .

JAPO (Jewish American Prince/Princesses for Obama) Promises To Get Designer Boots On The Ground For Campaign.

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Alright already! So you’re a fellow landsman who is getting all faklempt because your grandparents think that someone named “Barack” is a Moslem even though you keep pointing out to them that Israel had a Prime Minister named Barak and that the name also comes from the story of Deborah in the Book of Judges? And you have some free time over Columbus Day weekend? Mazel tov! Have I got a deal for you . . .

You need to join the Great Schlep. No, I’m not talking about taking the subway from Park Slope to Midtown! The Great Schlep is all about getting all the young Obama peshers to talk the Hilary altercockers by having them visit their grandparents in Florida (and elsewhere! You think you should forget your grandmother in Cleveland just because she didn’t move to Miami with the rest of her Haddasah chapter? Shame on you!) to schmooze about Obama and how for a guy with a goyishe kop, he’s really a mensch who isn’t going to sell out Israel or turn your condo over to the schvartzes for reparations for “stuff I shouldn’t even feel guilty about because we were in a schtetle in Odessa during slavery and believe me it was no picnic and besides your mother did all that marching back in the sixties so why is it my fault I’m asking.”

Will it really work? Nu, could it hurt? So the worst thing is you’ll see your grandparents, who mentioned just last week that you never call or write and why do they have to go to something called “flashr” or “flickr” or something to see your picture when they haven’t seen your face or heard your voice since your cousin Tiffany’s bat mitzvah. It’ll get you to visit Bocca when it isn’t that meshuganah spring break or whatever where you do all that stuff I don’t want to hear about or I would die of shame.

So go already.

Stay tuned . . . .

Evaluation of the Comcast/BitTorrent Filing — Really Excellent, Except For The Gapping Hole Around the Capacity Cap.

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After Comcast surprised me with their filing on Friday, I really wanted to believe they had turned a corner. Not to anthropomorphize too much, but I had hoped that Comcast had gotten such a bad public relations disaster out of this that they were determined to work so hard to be good little puppies that even a Democratic Congress, Democratic President, and Democratic FCC would believe that the we no longer needed rules. And I would be totally down with that (their behaving that is, we still need rules). I love it when companies learn their lesson and stop misbehaving. Remember, public policy is (IMO) all about result. If swatting Comcast on the nose like a naughty puppy gets them to stop pooping on their customers, then they deserve a pat on the head and a tummy yummy treat when they behave.

But I’m having a “Columbo moment” here. For those who did not grow up in the 1970s and therefore do not recognize the reference, Columbo is a television detective who every episode goes to talk to the chief suspect about the circumstantial evidence, and the chief suspect always has a fully prepared and perfect alibi. On the way out, apparently as an afterthought, Columbo will turn around and say: “there’s just one thing that bothers me.” This question on a minor inconsistency turns out to open a gaping hole in the suspect’s alibi and — in classic television fashion — allows Columbo to solve the crime by the end of the show.

I do not pretend there is any mystery here left to solve. Comcast’s filing very neatly explains their past practices, how we reached this point, and how Comcast intends to change its practices. It includes benchmarks for performance and a plan for informing its subscribers. It looks exactly like what the Commission ordered.

There’s just one thing that bothers me. Footnote 3 of Attachment B. Comcast stresses in footnote 3 that its 250 GB per month cap is not a network management policy, is not a replacement for its current network management practices, and therefore is not actually a proper subject of this disclosure report. Now why did they go out of their way to say that?

If you will excuse me, sir, while I adjust my raincoat, a bit more analysis below . . .

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ESPN360.Com Locks Up It's Content — Let The Fragmentation Games Begin!

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There’s been a lot of back and forth over whether letting broadband providers lock up content, or content providers lock out ISPs, is a good thing or a bad thing. And now, ESPN360.Com is going to kick off the fragmentation games and let us all find out.

It is a fine old Republican free market anti-deregulatory tradition to deregulate critical infrastructure and hope for the best, pooh-poohing doomsday predictions as ignorant exaggerations and fear mongering by business-hating regulation-loving quasi-commies. And since this philosophy worked so well with our financial sector, we have now moved it to the next major engine of the economy — broadband.

I am so excited! For those who have developed a taste for Lehman Bros-type thrill rides, the ESPN360.com deal will bring back fine memories of your first subprime derivative. You (and the rest of us along for the ride) can look forward to the thrill, the excitement, the dramatic highs and lows of playing high stakes roulette with our digital future. True we’ve lost our mortgage money (literally and metaphorically) playing “follow the Subprime queen.” But don’t worry. As any economist will tell you, the combination of a lack of information, high transaction costs, complex interrelated markets, and poorly understood network effects is just tailor made for that wild west anything goes atmosphere that made all them miners rich in the Sacramento gold fields!

Bet our critical infrastructure? How can we afford NOT TOO!!!

Details below . . .

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I Am Pleasantly Surprised By Comcast Complaince, But Am Still Nasty And Suspicious By Nature.

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Well, after saying that while Comcast might fully comply with the FCC’s requirement to report on September 19, but I expected them to play games instead, Comcast handed me a very pleasant surprise. Not only do they appear to have made a thorough disclosure of their current network management practices and their future network management plans, not only have they submitted the required compliance plan with benchmarks, but they actually served me with an electronic copy. As I pointed out last time, this last was not required but is generally good form.

The downside, of course, is that I must go and actually read the filings. That nasty suspicious nature they beat into me at law school rears its ugly head again. Still, it’s a “problem” I enjoy having so I can’t really complain.

But it looks like Comcast has decided that its best interest lies in complying and getting this behind them (with the exception, of course, of the Petition for Review). While I am by no means ready to lower my guard and drop my own Petition for Review (that nasty suspicious nature again), I give credit where it belongs. At first glance, Comcast appears to have complied as thoroughly as I could wish. Assuming this bears out after proper verification, I hope I am pleasantly surprised a second time when Comcast complies on schedule.

Stay tuned . . . .

What Will Comcast Do Today? First Compliance Check On Comcast/BitTorrent Order.

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Back on August 20, the FCC released its Order resolving the complaint against Comcast for blocking P2P protocols. As part of the remedy, the FCC ordered Comcast to provide a full report on its current “network management practices” within 30 days, along with a transition plan for how it intended to manage traffic after it discontinued its current practices. The FCC then invited Free Press and anyone else interested to keep a sharp eye on Comcast.

Comcast has sworn up and down that it will comply with the FCC’s Order and it is only appealing in the D.C. Circuit as a matter of principle. I, nasty cynical public interest dude that I am, so doubt this noble intention that i have filed a law suit of my own to get the FCC to clamp down on Comcast now. So, here we are at last on September 19. What does Comcast do?

Comcast has a range of options. Comcast could refuse to comply, forcing the FCC to take action and potentially giving Comcast grounds to go to the D.C. Circuit for an emergency stay. I think that pretty unlikely, given what a big deal Comcast has made about complying.

Comcast could fully comply. But, to paraphrase Arlo Gutherie, that isn’t very likely and I don’t really expect it.

What I expect is for Comcast to file something incomplete, possibly with a request for the FCC to protect its proprietary data. But more likely they will file something that will be just enough compliance to present Kevin Martin with a nasty political choice: Does he enforce the letter of Order and go in guns blazing against Comcast, knowing that Comcast will make great political hay of his supposed “vendetta” against them? Or does he let Comcast thumb their noses at him and — in addition to the humiliation factor — have public interest groups question whether he really intend to enforce that end of the year deadline and thus call his hard-won consumer protection credentials into question? The situation is further complicated by the internal politics of the Commission. Whichever choice Martin makes (and he gets to make it himself, since it is an enforcement action and not subject to a vote of the full Commission), it is almost certain that two Commissioners will call him on it publicly. McDowell and Tate are almost certain to regard whatever fig leaf Comcast files as sufficient, whereas Copps and Adelstein will likely raise a hue and cry if Martin lets Comcast get away with filing an incomplete report.

As an aside, I also expect Comcast to file after close of business and to do so by hand rather than electronically, so that the content is not immediately accessible. I also do not expect to get a service copy, despite being counsel to complainants. That’s perfectly legal of Comcast, as it can take the position that this is a report to the FCC and not a pleading that needs to be served on the complainant or complainant’s counsel. But it does mean I don’t expect to see what Comcast actually filed until sometime next week.

Happily, I put my trust in the advice of the Bible and do not put my trust in princes — or FCC Commissioners. In this case, the pending Petition for Review gives us a certain leverage, and Comcast will have to consider that it will have a tough time arguing my Petition is moot and pointless when they are not actually in compliance with the FCC’s Order.

Perhaps I misjudge Comcast. It would certainly make my life easier if they just complied and filed something open that detailed their past practices and explained how they planned to go forward (including details of he 250 GB cap). In particular, I very much want to know if Comcast intends to exempt its own content from the 250 GB cap. That would be rather anticompetitive, and without any actual rational connection to the stated need to reduce last-mile congestion. Comcast originated packets running from the head-end to the subscriber take up as much capacity as non-Comcast originated packets.

See, there goes that nasty and suspicious mind of mine again. Still, I hope I’m wrong and Comcast comes clean.

Stay tuned . . . .