So with 2010 finished and 2011 now thoroughly under way, it’s time to play Prognosticate Me! Mind you, anyone can predict “spectrum will remain a focus” and “USF reform will loom large.” The fun lies in trying to pick the surprises. So I have selected 3 potential “black swans” for 2011. The term comes from Nassim Nicholas Taleb’s book about the high impact of low probability events.
I’ve selected three highly unlikely events that could have huge impact in 2011. First, the FCC could get serious about making online video accessible to virtual MVPDs (“MVPD”=multichannel video programming distributor, which is the fancy way to say any pay TV provider like cable or satellite) and new technologies. Normally betting on the FCC to play anything other than King Log while the incumbents play King Stork is a long-shot, unless the FCC actually has to act. Here, the need to renew the program access rules means the FCC will need to look at the state of the video market, and creates a forum for these issues.
Second, I’m betting that the FCC will continue to look at the underlying issues in the Comcast/L3 interconnection dispute long after the Comcast merger gets done, possibly rolling the issues raised here with the never ending proceeding on special access reform. Why would the FCC look into these issues when the FCC hates this sort of controversial stuff and has never wanted to look at, let alone regulate, internet backbone traffic? Because the there is (literally) too much riding on this. Comcast/L3 is much more a symptom of fundamental change in the economics of internet transport than about any two actors, and the pressure for the FCC to at least know what’s going on and figure out how it impacts the economics of Internet backbone transport — and therefore by extension the economics of all things Internet — is going to be very difficult for the agency to ignore.
Finally, I list my favorite potential black swan, LightSquared. Odds are against them for a variety of reasons, from possible financial problems to resistance from incumbent giants AT&T and Verizon. But the system, now that it has cleared a possible show-stopping satellite malfunction, has the potential to totally revolutionize the underlying economics of wireless backhaul and wireless services by providing really cheap purely wholesale LTE service. On the downside, it may also destructively interfere with GPS systems, which could be kind of a problem according to this Motorola filing with the FCC. Either way, it looks potentially pretty disruptive.
More below . . .