The Last Day of (Full Power) Analog TV And Our Post Transition To Do List.

Well, here it is at last. Finally, more than 13 years after the 1996 Act created a scheme to transfer us to digital television by giving all existing broadcasters $70 billion (at the time) in new spectrum rights, the great day of reckoning is here.

Give the FCC and NTIA, especially mid-season replacements Acting FCC Chairman Michael Copps and Acting NTIA Administrator Anna Gomez, massive applause for seeing this through to the end. You guys rock! As one of your 300 Million taxpayer bosses, I’m telling you to sleep in tomorrow. Oh yeah, it’s Saturday.

Once you’re back on Monday, however, and assuming the world as we know it did not end, we have a few items left on the clean up list: Wireless Microphones, LPTV, the UHF Discount for Ownership, and Public Interest Obligations.

This post is dedicated to the memory of Libby Beaty, Executive Director of NATOA. A tireless advocate for the importance of local government and its power to protect consumer interests. Today, Libby tragically lost her battle with lung cancer. She will be sorely missed.

More below . . . .

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

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

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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Spectrum Inventory: “Same Bed, Different Dreams.”

I find myself in complete agreement with the wireless industry on supporting The Radio Spectrum Inventory Act. This Bill, sponsored by John Kerry (D-MA), Chair of The Subcommittee on Communications of the Senate commerce Committee, and Olympia Snowe (R-ME), Bill Nelson (D-FL) and Roger Wicker (R-MS), requires NTIA and the FCC to account for every MHz of spectrum between 300 MHz and 3.5 GHz within 180 days of the bill’s passage. You can see Kerry’s statement here, and Snowe’s statement in here.

“Same bed, different dreams” was the title of a book by David Lampton on Sino-US relations, and comes from a Chinese expression describing people whose lives are fundamentally intertwined but who do not fundamentally communicate with each other. That pretty much sums up supporters of more licensed spectrum and supporters of more unlicensed spectrum, both of whom very much back this bill. Kerry caught this duality nicely by saluting both the 700 MHz auction and the opening of the broadcast white spaces as demonstrating the value of spectrum access and the need for the inventory.

A bit more on this below . . .

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Broadcasters and Broadway Challenge White Spaces Order, Standing Hijinks To Ensue.

Unsurprisingly, the NAB and MSTV have filed a Petition for Review with the D.C. Circuit to try to get last November’s Order permitting unlicensed use of the white spaces overruled. As is the norm, the Petition merely recites the basics of jurisdiction and the general allegation that the Order is “arbitrary, capricious and otherwise not in accordance with law.”

Of perhaps greater interest, Broadcasting and Cable reports that a coalition of Broadway groups is filing in the Second Circuit.

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Dave Sez: “It's raining, and I can't watch Charlie Brown in HD.”

Some of you may remember my friend “Dave” who tried to get the $10 DSL deal from AT&T in ’07 when he moved to Sacremento. As I noted at the time, Dave does not get cable TV “on the grounds that 99% of the programming ‘sucks.’” Being a smart and technologically savvy fellow, as well as keeping up on all things media and telecom by reading this blog, Dave went and got his NTIA coupon and bought a converter box and did everything like a technologically savvy consumer should.

Did this bring Dave the wonders of digital television? Sadly, no. But let him tell you in his own words below . . . .

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Why Do Competitive Markets Keep Misbehaving? The Curious Case Of Cellular Txt Msging.

Been meaning to get to this for awhile now, which is why the links are so old.

It has long been an article of faith among the worshipers of the Gods of the Marketplace that once you achieve “competition” (generally described as at least one more possible new entrant, but certainly where multiple providers exist) you eliminate regulation, because a competitive marketplace gives consumers what they want — like high fuel efficiency standards and a secure financial system. Thus, for the 30 or so years, we have more and more framed the debate in telecom and media policy around whether or not we have “enough” competition rather than about the benefits or drawbacks of any actual policy. Unsurprisingly, you can always argue that we have “enough” competition (or that competition is about to emerge) and thus side step the whole question of the actual state of reality and what reality we might prefer.

Enter the curious case of cellular telephony. I’ll take the case of text messaging, although the same argument applies in varying degrees to other aspects of the wireless market like network attachments and ring tones. As Randall Stross wrote in the NY Times at the end of December, the cost charged to consumers for txt messaging has absolutely nothing whatsoever to do with the actual cost of the service. Yet — as we are constantly reminded — the cell phone market has four national players and numerous regional players. This makes it squindoodles more competitive than, say, the broadband market in most places in the country where you can generally get two somewhat comparable services (cable and DSL) and a whole bunch of also rans that folks like to claim are competition.

Text messaging is so overpriced compared to cost that last year Senator Herb Kohl, Chair of the Senate Antitrust Subcommittee, has sent a letter to AT&T, VZ, T-Mobile, and Sprint (more details here)asking ‘Ello, ‘ello, ‘ello and what’s all this ‘ere, then? — you’re nicked!’ (no, I have no idea why Kohl sounds like a British Bobby from 50 years ago — ask him). As Kohl noted in his letter, the consistent ridiculously high prices for SMS txt messaging “is hardly consistent with the vigorous price competition we hope to see in a competitive marketplace.”

Short answer: it is utterly consistent with the nature of the wireless market. But — and here’s the shocker — real world markets are often much, much more complicated than the followers of the Gods of the Marketplace like to believe. Cell phone companies charge outrageous prices for text messaging (and other services like ring tones) not because they conspire with one another, or even because they engage in conscious parallelism. Nor do they do so because they must as a result of actual costs. They do so because — to use that classic phrase — it is what the market will bear, and the structure of the market ensures there is no benefit to any cellular carrier to offer text msging plans at anything approaching cost plus reasonable profit.

In economic terms, this is an oligopoly. Washington regulators treat oligopolies as if they were the same as competitive markets, unless one can show evidence of actual collusion — in which case it becomes a question of price fixing. But in reality, it doesn’t always work out that way. Even absent collusion, the ability of players to engage in strategic planing can negate the anticipated benefits of competition. Applying this framework to the CMRS market, and the question of the price of text messaging goes from suspicious riddle to entirely predictable. Whether you regard this as a reasonable outcome or not has nothing to do with “competition” or “market failure” and everything to do with whether we make a policy choice to care about it or not.

(Much) longer answer below . . . .

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Did 3.65 GHz Really Cause TV Interference In Philly? Why I'm Skeptical.

Harry Jessell over at TVNEWSDAY has this story about a possible interference problem between operation of 3.65 GHz band equipment and the neighboring C-Band satellite receiver operated by CBS-owned KYW in Philadelphia.

According to the article, KYW experienced interference on its C-Band downlink near the 3.70 GHz frequency in February 2008, and resolved the problem by shifting to a higher frequency. The interference stopped a short time later, then flared up again in September, prompting KYW to call the FCC. That seems to have taken care of the problem, indicating it was a byproduct of some human operation addressed by the FCC enforcement — although possibly not. According to the article, the FCC won’t talk about it — which is standard procedure in an enforcement complaint.

According to the article, KYW Chief Engineer Rich Paleski thinks the problem was a “WiMax operator” using the 3.65 GHz. Paleski worries that 3.65 GHz will not be compatible with C-Band satellite downlink operation and warns “that should concern every station that imports programming via C-band satellite, which is to say just about every station in the United States.” He wants all television broadcast engineers to be alert for interference in the lower part of the C-Band near 3.70 GHz.

Given the rule limitations on use of the 3.65 GHz band, I am extremely skeptical of Paleski’s conclusion. Why? Because given the rules for operation in the band, no one should have been operating on the band in Philadelphia. And even they were operating illegally, they would have needed to hack the equipment to get within 25 MHz of 3.70 GHz, or have anything like the power needed to cause the kind of interference Paleski reports.

Given the growing popularity of the 3.65 GHz band for WiMax (as evidenced by projects like these), I think it’s important to look at this very carefully and not go leaping to conclusions. The 3.65 GHz band holds out a lot of hope for rural broadband by wireless ISPs (WISPS) running small businesses and priced out of licensed spectrum. Before anyone starts speculating from this single incident that use of 3.65 GHz poses a danger lets take a careful look at some of the facts around the use of 3.65 GHz and why I don’t think this is an industry-wide issue. It’s always easy to blame the new neighbor — especially when you think “their kind” is trouble. But how likely is it really?

More below . . .

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Shure Makes Clever Defensive Gambit Against CTIA/Public Safety in 700 MHz Tussle — $1000 Rebate.

In an interesting new development in the wireless microphone saga, Shure is now offering a $1000 rebate on a replacement wireless microphone for anyone who trades in a wireless microphone that operates on the 700 MHz frequencies, provided the purchaser bought the microphone before February 2007. I’m not sure why the magic cut off date, and Shure does not explain.

Shure does, OTOH, offer an explanation for why it will make this generous offer — albeit an incomplete one:

“Our number one priority is to provide our customers with the highest quality products, service, and support,” said Al Hershner, Vice President and General Manager of the Shure U.S Business Unit. “We’ve known for some time that the ‘700 MHz band’ would be reallocated for new services following the DTV transition on February 18, 2009. Although a final decision from the FCC is still pending, we felt the need to assure our customers now that we will take care of them regardless of the outcome.”

Shure does not mention, of course, that the most likely outcome involves outlawing all use of wireless microphones in the 700 MHz, and a reasonable probability that Shure (and other manufacturers) will be required to replace the equipment for free. But that doesn’t mean Shure will miss an opportunity to spin its customers and recruit their support at the FCC explain to interested customers the ongoing FCC legal proceeding:

“There has been a great deal of confusion for wireless microphone users regarding the political and technological developments surrounding the DTV transition and the 700 MHz auction over the past few years,” added Hershner. “As always, Shure has a team of sales, customer service, and technical support staff available to answer any questions people might have about this rebate program or their products.”

Hmmm….could this have something to do with the recent push by the incoming public safety and commercial 700 MHz licensees to take this seriously so it won’t mess up deployment? Could Shure be trying to fob off the FCC with a fake remedial action while boosting its own sales and recruiting its customers for a massive push against the wireless guys and public safety? Or is that just my nasty and suspicious nature rejecting the idea that Shure is deeply — deeply I say — concerned about its customers (which it assures the FCC are only retailers and not members of the public ineligible for licenses to operate such systems) and I should be ashamed of myself for questioning this noble voluntary remediation by an upstanding corporate citizen that just happened to build its business on wholesale violation of federal law?

I explore the possibilities below . . . .

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