Tales of the Sausage Factory

An insider’s view of the media hegemony

The 700 MHz Auction as the Next Front In the Cable/Telco War.

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There are many ways to parse the fights in the 700 MHz auction: incumbents v. new entrants, rural v. large incumbents, public safety v. commercial use, and the occassional suggestion by us in the public interest community. But, as I recently indicated elsewhere, an analysis of the band plan fight about large licenses v. small licenses reveals another interesting battle: Telcos v. Cable, with new entrants lining up with Telcos for large licenses and non-vertically integrated wireless carriers like T-Mobile aligning themselves with the cable-dominated consortium SpectrumCo.

What makes me believe license size in 700 MHz auction has become a new front in the fight between telcos and cable cable cos? Why has this new battleground emerged? And what are its implications?

See below . . . .

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I, For One, Welcome Our New Google Overlords

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In a news report worthy of KBBL-TV’s Kent Brockman, MSNBC’s Olga Kharif writes of Google wielding it’s awesome and terrible powers in preparation for bidding in the 700 MHz Auction (as if I think about anything else these days). According to Kharif, “Google is wielding a surprising amount of power in the nation’s capital,” as demonstrated by “the influence Google is having on a closely watched government auction of $10 billion in licenses to provide wireless service.”

As evidence of Google’s supposed “influence,” Kharif points to Google’s involvement in the 4G Coalition “widely considered Google-led” (by whom, Kharif’s cat Mittens?) and how Martin’s express support for 4G on the large licenses v. small licenses issue shows that the FCC is likely to “play ball” with Google.

I might just let this go as another example of the Google-mania that has takne root in the press, but the normally perceptive and attentive Paul Kapustka on GigaOm made the same mistake. Because Martin said nice things about 4G and the DBS Guys (which I still thinks sounds like a Rock Band that performs at the CES Show), everyone is all “oooohhh the 4G guys are doing real well.” And the Google worshippers are all “Ah, Google Overlords, is there nothing you can’t control?”

Two critical facts tend to drop out of this analysis.

1) Martin lost his first-round bid to get the larger license-size reag plan through. That was the original plan, as noted by the Commission when it initiated this proceeding last August. This large license proposal got enormous push-back from SpectrumCo LLC (Comcast/TW/Cox/Sprint-Nextel) and the independent wireless incumbents (T-Mobile, MetroPCS) and the little rural guys. The fact that Martin was unable to get his fellow Republicans to vote with him and get the large-license band plan ratified in this round (as opposed to considered as one option among several in the Further Notice) is a set back for the supporters of large licenses.

2) The other supporters of large licenses, the ones Martin couldn’t mention for political reasons, are Verizon and AT&T. You might remember these telcos from such Kevin Martin movies as “Local Governments Hate Competition” and “Cyren Call: Song of Satan.” Verizon went so far as to hire ace auction expert Peter Cramton to write this paper on “Why Large Licenses In The 700 MHz Band Make Jesus Happy.”

[WHY the telcos and the cable cos are battling over the sze of licenses is extremely interesting and important, and is the subject of this post here.]

So yeah, Martin gave the big shout out to the DBS and 4G guys, since he’s not exactly going to say to the Dems “I’m puzzled why Ds who claim to hate cable market power back SpectrumCo against Veizon and AT&T.” And I think Martin genuinely does believe large licenses are the best way to get another national broadband competitor on the scene. (I also believe it, which is why I prefer large licenses a la the telcos and our Great Google Overlords.) But the idea that Martin did this just because Google redid the words “Federal Communications Commission” in rainbow and promised that they wouldn’t do evil with the licenses doesn’t exactly cut it. (No offense to Rick Whitt, whom I like and I think is a great lobbyist, but lets stay focused on the actual docket and relevant history, shall we?)

I suppose I should just accept that Google exerts a fascination on the trade press these days and let it go (and figure that anyone who wants my view on reality rather than Googleview will come here). But after spending last summer of watching Google and the rest of the tech industry unable to find their lobbying ass on net neutrality with both hands and a compass and a big sign saying “telcos, please spank us here”, while constantly hearing from the press and the cable cos how all of it was really the amazing Google Overlords at work has made me just a shade irritated.

Besides, it’s Friday afternoon and I’m due for my shabbos rest.

Stay tuned . . . .

O.K., Now You Can Call Some Bush Supporters Facists

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By which I mean in the literal and technical sense of adhering to the philosophy of facism, rather than simply as a pejorative. Glenn Greenwald writes this piece critiquing an Op Ed in the Wall St. J. by Harvey Mansfield. Greenwald chooses to focus his analysis and ire on Mansfield. In doing so, he misses the far greater danger — the reemergence of the philosophy of facism as a political force in the United States.

My analysis below . . .

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A Must Attend for Community Wireless Networking

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Below the surface, where policy makers rarely go, live the community wireless networkers. They don’t have billions in capitalization, they don’t lay miles of fiber, and they don’t have spectrum licenses. Heck, most aren’t even commercial organizations. Many of them are collections of volunteers, or non-profit organizations. The commercial ones are usually small businesses, embedded in their comunities, trying a run a business in a responsible manner rather than dreaming of huge IPOs.

But the community wireless networks (CWN) change people’s lives every day. They bring broadband connectivity to neighborhoods that can’t afford it and the rural areas that the big boys ignore. They are the development lab of innovation for networking. From open source mesh to solar powered transmitters to “cantenna”-type reuse and recycling of available parts, you can find folks playing with these in community wireless networks.

The Third International Summit for Community Wireless will take place in Columbia, MD at Loyolla Colege on May 18-20. It represents an unparalleled oppotunity to find out what is going on not just here in the U.S., but in other countries as well. This is the place to find out how people confronting the “digital divide” in the trenches are finding solutions in places that the largest companies don’t want to service. Whether it’s how to keep cows from knocking down your towers or how to make sure a local project stays local and sustainable, you’ll find people talking about it here.

I plan to be there. I know a lot of great people listed in the press release reproduced below plan to come as well. If you’re smart, you will as well.

Stay tuned . . . .

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VA Tech Aftermath: The Usual Panic Repression With A Racist Undertone

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It seem sadly inevitable. Whenever we have a national tragedy, a pattern of repression — often flavored with a racist or at least anti-nonconformist undertone — breaks out. After the Columbine tragedy, schools rushed in to expell any kid that looked like a Goth and put “zero tolerance” policies in place that did little for safety but lots to satisfy panic. After 9/11, we got to see anyone who looked even vaguely middle eastern subject to extra searches, police stops, and occassionally getting dragged away on suspicion of something or other.

Now, sadly, it’s happening again. First, lets pump up the gullible with a non-stop media orgy of “How did we miss the signs?” “Kids these days are so violent, and exposed to so many violent influences.” “Who knows where or when the next mad student will strike?” “It could be anyone! It could be the (Asian) kid next door!” etc., etc., etc. And lets keep flashing the same pictures of the VA Tech murderer over and over and over — in case anyone missed he’s Asian.

All set, than lets zoom ahead to where our latest outbreak of post-trauma panic is taking place. According to this story in the Chicago Tribune, it would appear that the police have arrested Allen Lee for “disturbing the peace.” His criminal conduct? An essay he wrote in his creative writing class disturbed his teacher, who took it to the department head, who took it to the principal, who called the police, who had young Allen Lee arrested. His father subsequently paid the $75 bail, so they obviously do not consider him an imminent threat of some undefined terrible thing.

Until last week, Allen Lee was a straight A student with a contract to enter the Marine Corps after graduation. Other than being Asian, he does not appear to share much in common with VA Tech murdered Sueng Hui Cho. Lee wrote his essay for a creative writing class, in which the teacher urged Lee and the other students to “express their emotions through writing.”

More below . . . .

UPDATE: Here is a link to the essay in question and some author commentary. I am ungenerous enough to wonder if the teacher would have found it so “disturbing” if she had not been personally insulted as a bad teacher delluding herself.

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Oh yeah, the Skype Petition . . .

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In addition to my pleas to save the 700 MHz auction, save postal rates, save internet radio, save the last dance, etc., etc., I almost completely forgot about supporting the Skype Petition. Comments are due Monday, April 30. You can file comments by going to the FCC’s website and filling out the fields. It’s pretty self explanatory except the docket number, which is RM-11361. Just click here.

Oh yeah, I should probably explain a bit about what this is and why you should care. For that, see below . . . . .

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Support the Internet Radio Equality Act!

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According to this article, Rep. Inslee (D-WA) and Rep. Manzullo (R-IL) have introduced The Internet Radio Equality Act. From my brief reading, it nullifies the previous decision of the Copyright Royalty Board that started this mess, replaces the current langauge with the same standard used for satellite radio, and sets transitional rates until the next CRB hearing under the new standard.

Inslee has long been a friend to tech and new media and a foe of media consolidaion. In 2006, he joined with Markey and others to sponsor a stand alone NN bill after COPE passed out of the House Commerce Committee. Inslee has also been a champion on unlicensed access in the broadcast white spaces and supported municipal broadband.

The folks at SaveNetRadio now have an action alert on their front page to get nfolks to contact their representatives to get this through and signed into law before the new rates kick in on May 15.

I am reminded of an old saying that one of the professors at my law school alma mater was want to say: “Dogs get kicked; hogs get et.” Here, SoundExchange decided to act like a hog. As a result, they may get their cushy litte standard completely reset.

At least until May 15, stay tuned . . . . .

Open Access Included in Spectrum Notice! Fish In Trees! Rivers Running Uphill!

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Yesterday, I wrote, with regard to whether the FCC’s Further Notice on the 700 MHz Spectrum Auction would include questions on our open access proposal:

I think our chances of moving forward to the next round are pretty close to zero. OTOH, I live from day-to-day in the hope of pleasant surprises.

Apparently, I live another day. And so does the open access proposal. As explained by Gigi Sohn, we live to fight another day.

It was a wild meeting. Pushed back from 9:30 to 10:30, then pushed off again until 6:45 p.m. The contentious issue was, as predicted, license size. Apparently, McDowell teamed with the Ds to make sure the Further Notice requested comment on a mix of licenses and not just the large licenses that Martin wanted.

The Order is not yet out, so I can’t really assess yet what the results are. Heck, they don’t even have all the seperate statements up yet. Here are links to the news release, Chairman Martin’s statement (expressing disappointment over the license size issue), Commissioner Adestein’s statement (with a shout out to the public interest coalition!), and Commissioner McDowell’s statement (which basically says “I know I’m the swing vote, but I need to catch up on the comments because I’ve been out with my new kid”).

But whatever happens, I gotta give a shout out to Martin for being willing to put the open access question out there and have it debated. Yes, all credit to the Ds. But I don’t believe we would be positioned to have the discussion about wireless open access if Martin had been dead set against it.

Off to bed. It’s been a day.

Stay tuned . . . .