Comcast Not On Notice? They Were Told Point Blank!

It is a rather trite cliche that those who do not learn from history are doomed to repeat it. But in law, where concepts such as precedent and law matter a great deal, there’s an even bigger problem: Those who do not learn from history are likely to miss the obvious.

As we all know, Comcast has invested a lot of time in arguing that they lacked notice that the FCC would enforce the principles of the policy statement via a complaint against them. “How could we possibly have known?” Comcast has asked, winning sympathetic nods from a variety of folks. “Policy statements aren’t enforceable! How can you possibly punish us for something we didn’t know we might be held accountable for, all our public statements to the contrary?”

Well, let us suppose that Comcast was told two years ago today that the FCC would entertain complaints if Comcast blocked or degraded traffic. Would that make a difference? If the FCC had said directly to Comcast: “If in the future evidence arises that any company is willfully blocking or degrading Internet content, affected parties may file a complaint with the Commission.” I would think we could all agree that this constituted “notice,” yes? Perhaps not notice of whether or not the behavior at issue constituted blocking or degrading — that is, after all, what the Commission determines in a complaint. But certainly if the FCC had told Comcast directly, to its face, no ifs and or buts, the above quoted line, I would hope we could all agree that Comcast had received reasonable notice that parties could bring complaints to the Commission, asking the Commission to determine whether the parties had behaved in an inappropriate manner.

Because — Surprise! — exactly two years ago today, that is exactly what the FCC told Comcast.

More below . . . .

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I Suggest Giving Comcast What It Asks For . . . . Heh, Heh, Heh . . . .

As the FCC’s examination into our complaint against Comcast winds down, with what looks like a win for us (although with an opponent like Comcast, I am not going to celebrate a win until after the order is voted), Comcast has increased its efforts to woo McDowell and Tate with a show that “the market” will magically cure all ills by cutting a non-aggression pact with Vonage and a new ex parte filing listing all the wonderful things it has done since the Commission put our complaint out on public notice, which is an obvious sign that no regulatory action is necessary since it is merely coincidence that Comcast (and other broadband providers) have been scrambling with ever more serious urgency as the resolution of the complaint moves closer. Ah Comcast “Change we can believe in until all you stupid regulators go away and we can get back to crushing folks like insects beneath our fiber-coax heel.”

More of interest to us legal (and less credulous) types, Comcast filed a lengthy rebuttal to Marvin Amori’s magnum opus on Commission jursidiction. Marvin’s piece was, of course, a response to the Comcast filing after the Boston Hearing, that asserted the FCC had no authority to sanction Comcast or regulate Comcast’s broadband in the first place. Mind you, Comcast told the a California district court otherwise, and got a stay of the pending class action for blocking bittorrent as a consequence. But the first lesson of law school is that consistency is only a virtue if it serves your client. In any event, this most recent filing (which has not yet shown up online for me to link to) is therefore either the rebuttal to FP’s reply or merely the Nth go round in a “permit but disclose” proceeding.

This is reflected by Comcast’s argument, which largely rehashes previous arguments about the limits of Commission authority and whether Comcast had proper notice it could be subject to a civil complaint and civil sanction. Fair enough. Time now for the FCC to decide and then on to the D.C. Circuit. That’s what process is for, to get the arguments out so we can get a judgment and get on with our lives.

But Comcast does raise one new argument, and an intriguing one at that. And ya know, I think the Commission ought to give it to them. Heh, heh, heh . . .

Why am I chuckling? See below . . . .

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The UK Broadband Infrastructure And the Debate We Should Be Having.

This article from the London Times is useful both for its substance and for what it says about the sorry state of the debate in the U.S. While the U.K. has much higher available penetration and speed than the U.S., it is considered rather pokey and slow for Europe. As the article observes, the problem is that private companies don’t want to invest in upgrades of infrastructure.

More below . . .

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Today on Telecom Mythbusters: FCC Ancillary Authority in Comcast/BitTorrent

Cable gets a lot of mileage out of repeating things over and over until folks believe it’s true. Today on Telecom Mythbusters I’d like to focus on the question of “ancillary” authority and regulating broadband. The cable guys generally circulate two myths about this.

1) Ancillary jurisdiction by the FCC is an exceedingly rare, wacky, way out thing and the fact that net neutrality advocates even want to rely on it shows how way out there and kooky it is.

2) The D.C. Circuit has been busy trimming back ancillary jurisdiction so that it really doesn’t exist anymore. Specifically, the D.C. Cir. 2005 decision in American Library Association v. FCC, 406 F.3d 689 (D.C. Cir. 2005) (and, to a lesser degree, MPAA v. FCC, 309 F.3d 796 (D.C. Cir. 2002) worked some kind of mojo against the expansive grant of power by the Supreme Court in United States v. Southwest Cable, 392 U.S. 157 (1968) and the Supreme Court’s explicit statement in Brand X so that the FCC cannot regulate broadband access and prohibit Comcast from targeting specific applications such as BiTtorrent under ancillary jurisdiction. A sub-myth of this is “Title I cannot be the source of authority on its own.”

Marvin Ammori, General Counsel of Free Press, has written a stunning tour de force rebutting these arguments. The 100+ page filing masterfully traces the FCC’s authority under Title I and in this particular proceeding. But for those who don’t want to read through the whole thing, I will give my own take below.

I must once again warn readers that this will be a breathtakingly dull review of applicable case law, along with an examination of FCC precedents and does not go to the juicier merits of policy (not that I expct this to stop the Brett-bot from his inevitable comments). If you do not find legal minutia fascinating beyond words, if you do not thrill at the discussion of the subtle differences between a “Telecommunications Service Provider” and a “Common Carrier,” then for God’s sake, turn back now! Lest your brain dissolve into tapioca pudding from the awesome power of legal analysis unleashed.

(and for Brett: Blah blah blah evil blah blah Free Press blah blah MAP blah blah Ginger)

Otherwise, to see both myths BUSTED, read more below….

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Yet More Proof That Comcast (and Cox) Are Deliberately Blocking BitTorrent; I Await the Whacky Weasel Words To Come.

There are those still clinging to the desperate hope that somehow critics of Comcast’s “network management” policy of “delaying” BitTorrent packets “only during peak congestion periods” will be discredited. These folks have therefore wasted much time and energy calling those of us who filed the Comcast complaint all manner of nasty names, made sneering and condescending comments about Robert Topolski’s qualifications and the accuracy of his tests, and generally behaved like total obnoxious gits. So you will forgive me if I once again channel my “inner Cartman” and provide these folks with some bad news.

The Max Planck Institute for Software Development (MPI) has just released major study showing that Comcast and Cox Cable engage in major blocking of BitTorrent traffic regardless of network congestion levels, Robert Topolski and Jon Peha are right, and George Ou needs to shut the [bleep] up with his pathetic whining. Oh yes, and Ou also needs to get over his belief expressed at the Stanford FCC hearing that the reset packets could be coming from some mysterious source other than Comcast. Unless George is going to express a belief in the “reset packet faerie,” who sprinkles forged reset packets over good little networks to keep them safe from bandwidth hogs (which explains why this constant “leakage” only happens to Comcast and Cox), it’s time to face the reality that Comcast (and apparently Cox as well) really are using forged reset packets, deliberately, and all the time, just like we said they were.

Knowing, however, that folks like Ou (and paid flacks such as my friend and sparing partner Scott Cleland) are as incapable of admitting error as a certain Decider-In-Chief, I eagerly await the whacky weasel words that will inevitably follow. Will it be hand-waving technobabble? Ad Hominem attacks, cheap rhetorical tricks, and endless hair-splitting about definitions or ‘what I actually said was blah blah blah’? An effort to brush past this by proclaiming “this was never really about whether there were WMBs (weapons of mass BitTorrent blockage), this was about freeing the good customers of Comcast from the oppression of Al Qeda bandwidth hogs that use 90% of the capacity?” Another “expert study” that tries to cast doubt on Max Planck Institute (MPI) study? Or perhaps some delightful combination of all of these? The heat will be on!

A bit more analysis and a lot more snarkiness below . . . .

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My Testimony From Today

Well, that was fun. I reprint my testimony as prepared, not as delivered. I also cut a very insider joke. I’d planned to start:

“Mr. Chairman, I understand that this is the open Commission meeting, so it is perhaps no surprise that we are running an hour late. Also, as I have not had time to complete this testimony, I ask for editorial privileges.”

But no one off the podium was likely to get it.

[Editorial note from John (to help search engines and any random Wetmachine readers who stumble upon this): This post concerns Harold Feld’s testimony at today’s FCC hearing at Stanford University.]

Stay tuned . . . .

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Comedy Central Send An Omen: South Park and the Upcomming FCC Hearing (spoiler alert!)

As an inveterate procrastinator, I cannot complain too loudly that the Commission only just published the witness list for tomorrow’s (today’s) FCC hearing at Standford. Happily, it looks like I am the only lawyer on the panel. I am also amused to share the panel with George Ford, who took me to task after the last time we both testified in front of a federal agency about broadband — the Federal Trade Commission in February 2007 — for making my First Amendment arguments at the FTC under the guise of economics. My turn to remind him that we are in public interest land now, baby, where the Red Lion still rules the Jungle and maintaining the diversity of information sources is, according to Turner a government purpose of “the highest order.” Come to think of it, I’ll remind some of the Commissioners of that as well.

Meanwhile, on the flight in, I received an amazing omen from Comedy Central (which is why you should always fly Jet Blue if you can, so you can get 36 channels of omen potential). Tonight’s episode of South Park (spoiler alert!) had the internet getting “used up,” with the government rationing the internet for the internet refugees who came to Silicon Valley. But then Kyle, the little Jewish kid, shows them a better way. Rather than rationing users, you can just reboot the internet (which is kept by the federal government in an underground bunker) and try again. In the end, Stan’s father explains to everyone that it is the responsibility of users to manage their internet use respopnsibly rather than rely on others to ration it for them.

I choose to take this as an omen that I, the Jewish kid on the panel, will be sucessful in rebooting the Commission to get them to understand that it’s about the users, not about letting people in the middle ration the internet. Granted that Ben Scott actually looks more like Kyle, and I look more like Cartman. So perhaps I will just limit myself to making wise ass remarks and let Ben reboot the Commission. Either way is good.

Off to write some testimony.

Stay tuned . . . .

Comcast and BitTorrent, or "Honestly Charlie Brown, The Market Dictates I Let You Kick The Football THIS Time.”

[First, a rather important point to Richard Bennett and anyone who may be confused. This blog is my own. It is not a “Media Access” blog, and it does not represent MAP policy. I very deliberately do not show this stuff to anyone at MAP for prior approval before I write it. This is me personally sounding off. Got it? This is in addition to my day job. (Although my wrath at this mischaracterization is tempered by his describing this blog as “popular.”)]

There must be something in the air that has turned Comcast from a fighter to a lover. Apparently, Comcast and BitTorrent have kissed and made up, Brian Roberts has stood barefoot in the snow beneath Kevin Martin’s window at Canossa, and all is now supposed to be well in the world. Nothing to see here, move along, these aren’t the droids we’re looking for, and once again the magic of the market solves everything.

I would have written earlier, but I was having a flashback to when AOL Time Warner committed to creating an interoperable instant messenger. Then I was flashing on when AT&T Broadband and Earthlink “solved” the original open access problem by negotiating a contract and thus proving that “the market” would guarantee that independent ISPs would be able to resell cable modem service just like they were reselling DSL. Then I woke up vomiting. I always have a bad reaction to whatever folks smoke to conclude “the free market solves everything” especially when (a) this was the result of a regulatory two-by-four applied directly to Comcast’s scalp, repeatedly; and (b) nothing actually happened except for a real and sincere comitment to yack about stuff — at least until the regulators go away. Still, like Lucy and Charlie Brown, there are some folks for whom this just never gets old.

So while I’m glad to see Comcast forced to play the penitent, confess wrongdoing, and appear to give a full surrender, and while I generally like the idea of industry folks and ISPs getting together to actually do positive stuff on internet architecture issues, I think wild celebrations from the anti-regulators and the expectation that we can declare “Mission Accomplished” and go home is a shade premature. Indeed, the only people who believe this announcement actually solves anything are — by and large — those who didn’t believe there was a problem in the first place. I believe the technical term for such folks is “useful idiots.”

My further thoughts below….

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The FCC's New Broadband Data Gathering: Even the Deregulators Are Losing Patience.

It is a delightful bit of timing that this piece on European broadband comes the same day the FCC voted to amend its broadband data collection for the annual “State of the Broadband” Report. I’d say it was a happy coincidence, except that there are so many articles about how Europe is kicking our broadband bottom these days that the odds were good someone would publish something contrasting the growing penetration (and associated economic benefits) in Europe with the anemic growth in the U.S.

Which highlights the key take away from the FCC’s decision to ramp up data gathering and propose looking at pricing. Even the Republicans in Washington are starting to lose patience. I will provide analysis of the substance (as far as we can tell before an order is published) in a later post, but this point is sufficient important it bears posting on its own.

You will find no shortage of telco/cable shills or hardcore deregulators willing to sing the happy happy joy joy song over our current “wildly competitive” broadband market, or explain why these international rankings are misleading, irrelevant, or just plain wrong, the song no longer gets applause and the excuses are wearing thin. All five FCC Commissioners went to the Consumer Electronics Show this year. They’ve gone on tours of Silicon Valley, talked with venture capitalists and start ups, traveled around Europe and Asia, and — most importantly — are not stupid. In 2005, the industry promised big things if the FCC would only deregulate them and set them free. It’s now 2008. In that time, we have seen a parade of other countries streak by us while we plod along and fall increasingly far behind.

Do not let the last minute squabbling between the Commissioners about the details of the Report and upgraded standards fool you. While the Democrats would definitely like to see more done to get at real data, and while McDowell still frets that the cost of collecting data outweighs the benefits and that using labels for speed tiers is too subjective, everyone wants to find out what the real state of broadband deployment is and how we are going to make it available and affordable for everyone. We’re done with happy songs, the FCC is signaling. If industry wants to avoid the kind of massive reregulation the FCC and Congress would bring to bear under a Democratic administration, you need to start getting it in gear and providing real data. Whether industry will take the hint, or whether it will still find it preferable to remain in a state of denial, still remains to be seen.

Stay tuned . . . .

A Clarification From George Ou and Richard Bennett.

During the VonTV Debate, I stated that I was “sensitive to the arguments of George Ou and Richard Bennett that mandatory disclosure might allow people to circumvent network management tools, but I believe we can strike a balance.” I received an email from George Ou stating that he believed I misrepresented his and Bennett’s position.

Certianly it was not my intention to misstate anyone’s position. I therefore asked both George Ou and Richard Bennett to provide me with a statement of their position to reprint on my blog. They are reproduced below in their entirety.

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