Tales of the Sausage Factory

An insider’s view of the media hegemony

Comcast to Illinois: I loves Me The Market Power!

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As reported on BroadbandReports.com, Comcast has greeted former Insight customers transferred to Comcast as part of unwinding a partnership with a 6% rate hike. Thanks to all the delightful cover given to Comcast by Congressional Republicans, who declare that all is “A OTAY” in Cableland, the Comcast guys are no longer even pretending that the rise in rates has anything to do with cost. Rather, as Comcast rep Libbie Steh told the Springfield Journal Register in a rare attack of honesty: “increased costs are not a factor this year.” Rather:

“Comcast periodically reviews prices and adjusts them to reflect what’s in the marketplace,” Stehn said.

More below . . . .

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And Now for Something Completely Different . . . .

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The Onion explains the FCC’s indecency rules.


FCC Okays Nudity On TV If Itâs Alyson Hannigan

It should be noted, of course, that the inquiry is very fact specific. For example, a sex scene between Alyson Hannigan (“Willow”) and Amber Benson (“Tara”) would have strong artistic merit — especially if it included Sarah Michelle Gellar (“Buffy”). By contrast, if it took place during Seventh Season and featured Hannigan and Iyari Limon (“Kennedy”), it would merit a significant fine because Kennedy was a really stupid character and the entire relationship between Willow and Kennedy made absolutely no sense. In fact, even without the indecency, the FCC should have fined UPN for pretty much the entire second half of the seventh season.

By contrast, J. Michael Strazynsky should be fined for not making it profoundly unambiguous whether or not Susan Ivanova (Claudia Christian) and Talia Winters (Andrea Thompson) got it on in Divided Loyalties.

Such artistic programming can not only help avoid indecency fines, but it can be a serious assist next time you need a merger waiver. nudge nudge wink wink.

Finally, if any of the South Park characters appear nude, not only should the FCC fine every cable system in the country, but millions are likely to go blind.

Stay tuned . . . .

The Boston Tea Leaf Party

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Those interested in a great eye witness account of what happened at the FCC hearing in Boston on February 25 should read fellow Wetmachiner John Sundman’s piece on the part he saw (including the reception afterwards). But after listening to the FCC’s video archive, reading the statements, and reading the coverage, I’m willing to read the Boston Tea Leaves and see where we are so far and how I think this ends up.

Speculation below . . . .

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If Both Survive the Lirpa , We Will Continue With The Ahn'woon.

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Alright Net Neutrality fans, policy wonks, and children of all ages. Bring your quatloos and tune your internet browsers to Von TV on March 11 at 2 p.m. to see THE ULTIMATE STEEL CAGE DEATHMATCH TAG-TEAM POLICY SMACKDOWN ON NETWORK NEUTRALITY!!!!

Yes! For the edification, enlightenment, and entertainment of the policy world, I, yr hmbl obdn’t blogger, with Comcast Complaint Co-Counsel Marvin Ammori of Free Press, will square off against Progress and Freedom Foundation President Ken “the Assassin” Ferree and Phoenix Center President Lawrence “Terminator” Spiwak on the burning issue of network neutrality. As House Subcommittee Chariman Ed Markey (D-MA) once said: “This is no country for old broadband.” And I, personally, can assure you, There Will Be Blood. (If by “blood” we mean some “civil but very intense, passionate debate”).

“Not since the last Latke v. Hamentashen Debate has so much intellectual fire power, passion, and eloquence been mustered in one place on a vital issue of public policy.” — Random Policy Person

“Great background while multitasking.” — Overworked FCC staffer.

“A fantastic series of debates for a fantastic series of tubes.” –Senator Ted Stevens (R-Alaska)

So don’t you dare miss the action! Tuesday, March 11, 2 p.m., live on VonTV and absolutely free. I shall float like a butterfly, sting like a bee, as I and my co-counsel Ammori, make mincemeat out of Spiwak and Ferree!

Stay tuned . . . .

For the Clueless Among Us: Why Comcast Paying Folks to Attend FCC Hearing Is Wrong.

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I can’t believe I actually need to explain this.

Suppose Comcast made the following offer: If you vote “yes” on a ballot initiative we like (and agree to take a pocket recording device into the voting booth with you so we can have proof), we will pay you $50.

Most of us would not only say that this is wrong, we would have no problem understanding why that’s a crime. We would not be persuaded by Comcast defending itself by saying “well, Free Press and other organizations have campaigned in support of the bill and are calling people to ask them to go out and vote — they even provide free rides to people likely to vote for the initiative. That’s just like paying people directly to vote the way we want.” In general, we recognize a difference between organizing ad trying to persuade people to vote the way you want and actually paying people for their vote (and wanting a receipt).

Which brings us to Comcast’s exercise in seat packing at Monday’s FCC Hearing in Boston.

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Senator Pryror Angry At Right Problem, But Picks Wrong Solution.

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UPDATE: On reflection, I’ve decided to modify the tone of this considerably. After all, when someone basically agrees with you (the incumbents have too much market power), slapping them around for relying on the press is a pretty stupid and counterproductive move. Besides, my real frustration is with the press for offering up speculation as if it were fact, not Pryor for reading the press and getting upset about the supposed failure of the auction to produce a new competitor. So with apologies to Pryor for needless snark the first time around, here we go again.

Senator Mark Pryor (D-Ark) is upset with reports that AT&T or Verizon probably won C Block. More specifically, he is angry that we don’t have more wireless competition. That’s good. But he accusses Kevin Martin of fixing the 700 MHz auction to benefit the telcos. That’s where he goes wrong, in my opinion. As I’ve said before, I don’t think Martin rigged this for the telcos, especially in light of Verizon’s persistent efforts to get the C Block conditions “clarified” away and Martin’s telling them to go take a hike. Further, adoption of the anonymous bidding rules means that we don’t know yet who won the licenses. We may very well be surprised when we see the results.

But if it turns out that, as predicted, the incumbents did win the lion’s share of the licenses, that doesn’t make the outcome Martin’s fault. Rather, Senator Pryor should direct his anger where it belongs — at the statutory requirement for the FCC to auction licenses for use of the public airwaves. As I explain below, and as many of us explained before the auction, incumbents enjoy real advantages even under the best of conditions because they don’t have additional costs new entrants have — like building the network from scratch or pulling customers away from a service they already use. To make matters worse, Senator Pryor’s Republican colleagues are constantly haranguing the FCC to “not pick winners” and objecting to any kind of mechanism that could neutralize these incumbent advantages.

We can’t have it both ways, and Congress makes the call. Either Congress eliminates auctions, or allows the FCC to exclude incumbents from the auction, or gives up on auctions as a way of generating competition and goes back to regulating market power directly. But blaming Kevin Martin and the FCC for the fact that incumbents keep winning auctions makes as much sense as blaming Bud Selig for the fact that the Yankees and the Red Sox always make the playoffs and the Nationals haven’t gotten to the World Series.

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Is Obama v. Clinton Really Style v. Substance? Or Is the Internet Changing Another Facet of Campaigning?

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Unsurprisingly, Clinton has sought to portray Obama as mostly oratory style rather than substance. Whereas Obama may give uplifting speeches, she tells crowds, she is the one with the command of the facts and the true knowledge of policy. Clinton backs this up by giving well researched specifics and detailed policy recommendations in her stump speeches and in her debate appearances.

Also unsurprisingly, the herd beasts of punditryland in their never ending quest for simplistic themes that nicely boil down to “X v. Y” arguments have gobbled this up with a spoon. We hear constantly either about how Obama will need to show he has the same command of the facts, or how voters are more in the mood for change than for experience, and on and on and on.

I will humbly suggest, however, that what Obama has done is to match his message to the medium. He has put the details on his website for folks interested in specific issues. But when speaking in the context of a mass medium (huge rally, television appearance), he makes his broader campaign appeal.

Other candidates have done this in the past. But I believe we have now hit a sufficient critical mass on the wider availability and greater use of the Internet as a tool to become an effective campaign strategy. This relates back to my earlier observations on the interplay between the internet and the traditional mass media. I would love to see some actual empirical research on the subject. But my speculations based on what I know now below. . .

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No, I Don't Know Anything About the McCain Story.

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I regret to disappoint my fellow Wetmachiner John Sundman and legions of of folks discovering telecom policy is incredibly sexy (a fact I mentioned in my very first Wetmachine post), but I really have nothing to add about the McCain/Iseman story. This is not Wonkette here folks.

Policy, sure. I can tell you what made this transaction so controversial. And it may even have some bearing on the next FCC, given that one of the folks involved was Susan Ness, the former FCC Commissioner whispered about as the most likely nominee to replace Kevin Martin if Clinton wins. It also, of course, involved Bill Kennard who, along with Reed Hundt, is advising Obama. So I suppose the policy might have some relevance here. But as for the “juicy stuff:”

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700 MHz Auction: Whither The D Block?

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With even Chairman Martin publically agreeing that D Block is unlikely to attract any new bids, the question logically arises — what now? Needless to say, folks have not been shy about voicing their suggestions — especially those who think we ought to focus on maximizing revenue. Instead, I have a novel suggestion. Why don’t we actually investigate what the heck happened first?

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