Evaluation of the Comcast/BitTorrent Filing — Really Excellent, Except For The Gapping Hole Around the Capacity Cap.

After Comcast surprised me with their filing on Friday, I really wanted to believe they had turned a corner. Not to anthropomorphize too much, but I had hoped that Comcast had gotten such a bad public relations disaster out of this that they were determined to work so hard to be good little puppies that even a Democratic Congress, Democratic President, and Democratic FCC would believe that the we no longer needed rules. And I would be totally down with that (their behaving that is, we still need rules). I love it when companies learn their lesson and stop misbehaving. Remember, public policy is (IMO) all about result. If swatting Comcast on the nose like a naughty puppy gets them to stop pooping on their customers, then they deserve a pat on the head and a tummy yummy treat when they behave.

But I’m having a “Columbo moment” here. For those who did not grow up in the 1970s and therefore do not recognize the reference, Columbo is a television detective who every episode goes to talk to the chief suspect about the circumstantial evidence, and the chief suspect always has a fully prepared and perfect alibi. On the way out, apparently as an afterthought, Columbo will turn around and say: “there’s just one thing that bothers me.” This question on a minor inconsistency turns out to open a gaping hole in the suspect’s alibi and — in classic television fashion — allows Columbo to solve the crime by the end of the show.

I do not pretend there is any mystery here left to solve. Comcast’s filing very neatly explains their past practices, how we reached this point, and how Comcast intends to change its practices. It includes benchmarks for performance and a plan for informing its subscribers. It looks exactly like what the Commission ordered.

There’s just one thing that bothers me. Footnote 3 of Attachment B. Comcast stresses in footnote 3 that its 250 GB per month cap is not a network management policy, is not a replacement for its current network management practices, and therefore is not actually a proper subject of this disclosure report. Now why did they go out of their way to say that?

If you will excuse me, sir, while I adjust my raincoat, a bit more analysis below . . .

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I Am Pleasantly Surprised By Comcast Complaince, But Am Still Nasty And Suspicious By Nature.

Well, after saying that while Comcast might fully comply with the FCC’s requirement to report on September 19, but I expected them to play games instead, Comcast handed me a very pleasant surprise. Not only do they appear to have made a thorough disclosure of their current network management practices and their future network management plans, not only have they submitted the required compliance plan with benchmarks, but they actually served me with an electronic copy. As I pointed out last time, this last was not required but is generally good form.

The downside, of course, is that I must go and actually read the filings. That nasty suspicious nature they beat into me at law school rears its ugly head again. Still, it’s a “problem” I enjoy having so I can’t really complain.

But it looks like Comcast has decided that its best interest lies in complying and getting this behind them (with the exception, of course, of the Petition for Review). While I am by no means ready to lower my guard and drop my own Petition for Review (that nasty suspicious nature again), I give credit where it belongs. At first glance, Comcast appears to have complied as thoroughly as I could wish. Assuming this bears out after proper verification, I hope I am pleasantly surprised a second time when Comcast complies on schedule.

Stay tuned . . . .

What Will Comcast Do Today? First Compliance Check On Comcast/BitTorrent Order.

Back on August 20, the FCC released its Order resolving the complaint against Comcast for blocking P2P protocols. As part of the remedy, the FCC ordered Comcast to provide a full report on its current “network management practices” within 30 days, along with a transition plan for how it intended to manage traffic after it discontinued its current practices. The FCC then invited Free Press and anyone else interested to keep a sharp eye on Comcast.

Comcast has sworn up and down that it will comply with the FCC’s Order and it is only appealing in the D.C. Circuit as a matter of principle. I, nasty cynical public interest dude that I am, so doubt this noble intention that i have filed a law suit of my own to get the FCC to clamp down on Comcast now. So, here we are at last on September 19. What does Comcast do?

Comcast has a range of options. Comcast could refuse to comply, forcing the FCC to take action and potentially giving Comcast grounds to go to the D.C. Circuit for an emergency stay. I think that pretty unlikely, given what a big deal Comcast has made about complying.

Comcast could fully comply. But, to paraphrase Arlo Gutherie, that isn’t very likely and I don’t really expect it.

What I expect is for Comcast to file something incomplete, possibly with a request for the FCC to protect its proprietary data. But more likely they will file something that will be just enough compliance to present Kevin Martin with a nasty political choice: Does he enforce the letter of Order and go in guns blazing against Comcast, knowing that Comcast will make great political hay of his supposed “vendetta” against them? Or does he let Comcast thumb their noses at him and — in addition to the humiliation factor — have public interest groups question whether he really intend to enforce that end of the year deadline and thus call his hard-won consumer protection credentials into question? The situation is further complicated by the internal politics of the Commission. Whichever choice Martin makes (and he gets to make it himself, since it is an enforcement action and not subject to a vote of the full Commission), it is almost certain that two Commissioners will call him on it publicly. McDowell and Tate are almost certain to regard whatever fig leaf Comcast files as sufficient, whereas Copps and Adelstein will likely raise a hue and cry if Martin lets Comcast get away with filing an incomplete report.

As an aside, I also expect Comcast to file after close of business and to do so by hand rather than electronically, so that the content is not immediately accessible. I also do not expect to get a service copy, despite being counsel to complainants. That’s perfectly legal of Comcast, as it can take the position that this is a report to the FCC and not a pleading that needs to be served on the complainant or complainant’s counsel. But it does mean I don’t expect to see what Comcast actually filed until sometime next week.

Happily, I put my trust in the advice of the Bible and do not put my trust in princes — or FCC Commissioners. In this case, the pending Petition for Review gives us a certain leverage, and Comcast will have to consider that it will have a tough time arguing my Petition is moot and pointless when they are not actually in compliance with the FCC’s Order.

Perhaps I misjudge Comcast. It would certainly make my life easier if they just complied and filed something open that detailed their past practices and explained how they planned to go forward (including details of he 250 GB cap). In particular, I very much want to know if Comcast intends to exempt its own content from the 250 GB cap. That would be rather anticompetitive, and without any actual rational connection to the stated need to reduce last-mile congestion. Comcast originated packets running from the head-end to the subscriber take up as much capacity as non-Comcast originated packets.

See, there goes that nasty and suspicious mind of mine again. Still, I hope I’m wrong and Comcast comes clean.

Stay tuned . . . .

The FCC and the Flying Purple People Meter.

O.K., technically, it is the Arbitron Portable People Meter (PPM). For those unfamiliar with this issue, Arbitron has rolled out a a new technology it claims will more accurately measure radio audience share. Many folks in the minority community think that the PPM undercounts minority listeners and has serious flaws in its technology. This later claim, at least, is circumstantially supported by the refusal of the Media Rating Council to certify the technology for use in some markets (but apparently permitting it in others). But since the MRC will not disclose the reasons for its refusal, and neither will Arbitron, no one can say anything for certain.

As an aside, I’ll bet it also undercounts low-power FM stations as well. I also have to wonder whether it counts the new digital stations for radios that have converted to digital. But I haven’t made a study of this and only minority broadcasters and organizations concerned with broadcast diversity have raised the issue in a major way.

You may think, “what’s the big deal?” Well, not only does millions of dollars in advertising ride on this, along with major decisions on programming, format, etc., but so does federal policy. Since we have basically outsourced all significant information gathering on mass media (because the private sector is so much more efficient and why would an industry reporter ever have incentive to manipulate the information?), the FCC now relies on Arbitron ratings for a wide variety of ownership rules and policy decisions. For example, the FCC rules prohibit the top four rated broadcast television stations in any given market to merge.

So the FCC has put out a public notice in response to a Petition for an investigation filed by a coalition of minority broadcasters and the Minority Media Telecommunications Council (MMTC) called the PPM Coalition (PPMC). (you can download the Petition here). The FCC can, of course, investigate anything it wants — especially where its rules rely on the validity of the Arbitron rating system. But does the FCC have authority to do anything about Arbitron’s roll out of the Portable People Meter?

Well, if you believe in FCC ancillary authority, then the answer is probably yes. Arbitron and its rating system are clearly ancillary to a variety of FCC statutorily mandated goals. And if the FCC can require Best Buy to put a big sign next to any analog-only televisions saying “Will Not Work After February 17, 2009,” they can require Arbitron to show they are counting everybody. OTOH, if you don’t believe in ancillary authority, it becomes a heck of a lot harder.

Still, as the study itself demonstrates, there is value even in investigation by the FCC and getting the FCC to issue some kind of report. At some level, Arbitron does have to care if people buying advertisements consider its products reliable. It would be even more embarrassing if the FCC concluded it would no longer rely on Arbitron data — something it clearly has the right to do regardless of any authority to directly regulate Arbitron. By contrast, if the FCC gives Arbitron a clean bill of health, it may not satisfy the PPMC, but it will enhance Arbitron’s claims of reliability for the broader market.

Credit to the FCC for getting this out on notice quickly. We’ll just have to see what comes of it.

Stay tuned. . . .

Comcast Wins Lottery on BitTorrent Appeal.

Yesterday, the Panel on Multijurisdictional Litigation (PMJL) awarded the Comcast-BitTorrent Appeal to the D.C. Circuit. Obviously I would prefer to be elsewhere for the same reason Comcast wants to be there (despite being actually located in the Third Circuit), i.e. the D.C. Circuit’s reputation as being a pro-industry anti-regulatory bunch of judicial activists who don’t give a squat about actual case law. Still, since some of our strongest precedent is from the D.C. Circuit, and the D.C. Circuit has surprised Comcast in the past, I am not exactly weeping in despair here.

In a portent of things to come, Comcast also filed a challenge to our standing with the PMJL. I expect this to be renewed in the D.C. Circuit once the cases are consolidated.

Anyway, for those following the sequence of events, the Ninth, Second and Third Circuits will now transfer the cases to the D.C. circuit, which will consolidate them. Folks will have a chance to intervene in either or both sets of cases, and parties may also try to file other motions (e.g., motion for stay, motion for expedited trial). Anyone involved in the matter below (or having an interest impacted by either our Petition or Comcast’s) has a right to intervene — either on the side of the FCC or on the side of Petitioner. Also expect cross intervention where parties who like the FCC’s decision in the Comcast-BitTorrent case intervene in support of the FCC and against Comcast and in support of us and against the FCC. Or in support of Comcast in the Comcast appeal and in support of the FCC in ours. PArties may also file for permission to appear as amici for one side or another.

After the time for interventions passes (which I am too lazy to calculate at the moment), and the court resolves any pending motions, the court will set a briefing schedule. It is too early to guess the time frame until we see what motions parties file (other than interventions).

Stay tuned . . . .

Leveraging Law & Order For Cell Phone Jamming.

Ever since the FCC explicitly banned cell phone jammers back in 2005, a company called Cellantenna has been working its little heart out to get Section 333 of the Communications Act declared unconstitutional or otherwise get the FCC to legalize cell phone jammers. (Not surprisingly, CellAntenna hopes to sell cell phone jammers, among other equipment.)

CellAntenna’s latest scheme is to focus on the issue of unauthorized cell phone use by prisoners. I’ll confess, I think the bigger problem is stopping the smuggling in the first place or keeping prisoners under observation so they cannot use cell phones. Or — if I wanted to be real daring — set up detectors and tap into cell phone calls made from prison cells (guards should so not be using their cell phones on duty, so they don’t worry me — set up secure areas where prisoners are not permitted if there is a real issue).

But even assuming a real problem, I don’t see that this gets CellAntenna where it wants to go. If state and federal penitentiaries want to petition the FCC for special permission for a waiver of Section 333, that should not be too difficult. But that’s a rather small market in the grand scheme of things.

Folks hoping for legal cell phone jammers anytime soon should not hold their breath.

Stay tuned . . . .

The Comcast Bandwidth Cap — Blame Florida (and lack of competition and refusal to upgrade).

As all the world knows by now (the world that follows this anyway) Comcast has imposed a new bandwidth cap, limiting downloads to 250 GB/Month. Unsurprisingly, some folks blame the FCC’s recent decision on prohibiting Comcast from blocking BitTorrent and other p2p applications as pushing Comcast to make this change, although Comcast itself has repeatedly stressed that it was not compelled to do this and planned to do this anyway so no biggie.

What the world did not know, but I thank PK’s Art Brodsky for finding, is that Comcast agreed to clarify its cap as part of a settlement with the Florida Attorney General’s office. As some of us have observed for awhile now, Comcast long had a policy of cutting off “bandwidth hogs” for exceeding a capacity cap while refusing to say what the actual capacity cap was. Well, on July 29, Comcast agreed to make clear their capacity cap and pay $150K in fines.

I highly recommend reading the full terms of the settlement — particularly the factual background which Comcast has agreed is true (without, of course, admitting wrongdoing). Of greatest import, until it announced the 250 GB/month cap, Comcast did not have an actual hard and fast cap. Rather, according to Paragraph 5 of the factual stipulations, Comcast simply knocked off the highest 1000 users regardless of their actual bandwidth usage or geographic location. Comcast is almost certainly telling the truth when it says the highest 1000 users were atypically intense bandwidth consumers. duh. Of course the top 1000 out of 14.4 million will be at the high end of the curve.

No, the more interesting question is what the hell kind of a system is it where Comcast simply goes after the top 1000 users no matter how much they actually use, and why Comcast would adopt such a policy if it wants to reasonably manage network congestion? It seems rather . . . inefficient and arbitrary. Unless, of course, one is trying to save money running a crappy network and generally discourage high-bandwidth use.

Apparently, the Florida Attorney General also thought a policy that simply shut off the top 1000 users every month regardless of actual use or congestion did not meet proper standards of consumer protection or “reasonable network management.” The settlement requires Comcast to state clearly what it means by “excessive use of capacity” in its acceptable use policy (AUP). That’s it (as well as paying $50K for attorneys fees and other associated expenses to the AG for bring this action). Comcast has total discretion to set a limit or have a limit or change a limit, as long as there is (a) an actual fixed limit, and (b) Comcast clearly communicates to its subscribers what that limit actually is. This is in line with the settlement reached last year between Verizon Wireless and the NY AG’s office that Verizon would no longer advertise its wireless internet access package as “unlimited” but would provide a hard monthly cap.

Which explains why Comcast is not going around telling the world that it adopted bandwidth caps because of the big bad awful FCC and their wicked regulatory ways. They didn’t. Rather, Comcast was using an even more ridiculous bandwidth cap the entire time, and they were required as a matter of consumer protection law in Florida to actually come clean with a real number so customers can find out what they are paying for and get full value for their monthly subscriber fee. It seems Comcast has sense enough not to play those kinds of games on something so easily verifiable. Good for them. Nice to see they learn from experience.

Stay tuned . . . .

If I Love The FCC's Comcast-BitTorrent Order So Much, Why Did I Appeal It?

So last Friday, Media Access Project filed 3 Petitions for Review asking the federal courts to order the FCC to order Comcast to stop blocking p-2-p immediately. None of this wait until the end of the year crap. We filed on behalf of Vuze.com (in the Ninth Circuit), Consumers Union (Second Circuit), and PennPirg (a member of Consumer Federation of America) (Third Circuit).

Comcast, for its part, filed in the D.C. Circuit. I have not heard of any other filings, but it is possible.

More details, and what comes next, below . . .

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The FCC Starts Its Wireless Microphone Investigation. Will Broadcasters Throw Broadway Under A Bus?

The FCC has just released a Notice of Proposed Rulemaking addressing the problem of wireless microphone operations in the 700 MHz Band and how it may screw up the introduction of new public safety and commercial wireless services. It basically proposes to adopt the recommendations we made to prohibit any future manufacture, sale or importation of wireless microphones that operate on the relevant 700 MHz frequencies, and prohibit operation on those bands after the DTV transition in February.

Along the way, the Commission asks for comment on our informal complaint and Petition for Rulemaking. Oh yes, and the NPRM also announced that the Enforcement Bureau has commenced an investigation into the wireless microphone manufacturers and their sales tactics.

I wish I could take all the credit for this one, but I really gotta hand it to Shure. I’m not saying that Shure’s insistence on dragging FCC engineers out to field testing so they could see first hand the blatant way in which Shure and others violate FCC rules, getting all their illegal customers to right into the FCC by the thousands and regale the FCC with tales of unauthorized use all over the country, and generally rubbing the FCC’s nose in the fact that Shure and the rest of the industry were engaged in widescale violation of the rules over and over and OVER again necessarily had anything to do with this. I will merely note that it is a happy coincidence of timing that the FCC commenced its investigation the Friday following the field testing, and immediately thereafter put our Petition out for comment attached to an item already in the works. No, it is no doubt my good looks and charm once again bending the FCC to my will.

To the extent the industry press has picked up on this, it has (surprise!) assigned credit for this to the great Google Overlords. Mind you, the same article also thinks that wireless microphones “produced little or no complaints because their signals have traditionally been programmed to avoid TV channels,” so this will tell you something about the accuracy of their analysis. (For those wondering, wireless microphones are dumb devices and the user selects the channel. It has no sensing equipment or database or any of the interference avoidance tech proposed for white space devices.)

I would also say that much as I would love to see this as a sign that the FCC supports opening up the white spaces for unlicensed use, I don’t. The NPRM is very carefully neutral on the subject, without any statements from Commissioners one way or another, and voted on circulation (meaning it is non-controversial). No, I think the Register pretty much got it right when they described this as “having sold off 700MHz to the highest bidders last year, the FCC now has a responsibility to clear the area before the new tenants move in.” The ball on white spaces, whether licensed, unlicensed, or not used at all is still very much up in the air.

Mind you, this certainly impacts the debate over the white spaces, and potentially removes a stumbling block by providing a road map on how to address the wireless microphone issue in a way that punishes spectrum scofflaws like Shure while protecting users like churches deceived by Shure’s sales tactics (and give parties an incentive to come to the table and do a deal over real interference concerns before the FCC bites their patooties off). And I think it is fair to say that we did help move the debate forward by providing the FCC with the pathway to making this possible. But I would say that all the Commissioners are still waiting for the field testing results to come in before making a final decision on the merits.

What is really critical here for the white spaces proceeding is that the broadcasters now have to make a very unpleasant choice. Do they embrace the radio pirates and forgive Shure for unleashing a million illegal transmitters all over “their” spectrum? Or do they stick to their usual guns and condemn any unauthorized use of the broadcast bands as unmitigated evil and warn that sanctioning a million new authorized users — with new General Wireless Microphone Users added every day — could utterly destroy broadcast television as we know it? Either way presents problems for broadcasters — with the added bonus of highlighting their blatant hypocrisy. Embracing the likes of Shure and unauthorized users undercuts all the hysteria broadcasters have so carefully cultivated, especially when they have always maintained that opening this spectrum to anyone new would destroy free over the air television. OTOH, siding with the FCC on enforcement against Shure and warning the FCC not to allow millions of transmitters operating at higher power and with fewer protections in the white spaces destroys their ability to use Broadway, the Grand Ole Opry, and all those megachurches as human shields.

Needless to say, the broadcasters have desperately sought to avoid saying anything on the subject and have tried to spin this to their advantage: “Gosh, moving wireless microphones off Channels 52-69 will sure make it harder to fit in all them white spaces devices,” claims David Donovan of the Association for Maximum Service Television, a trade association for TV broadcasters that has fought against any sharing of the white spaces.

The problem with this statement is that, according to the FCC, there are only 156 licensed wireless microphones authorized to operate on Channels 52-69. That’s not a heck of a lot of crowding. Unless, of course, MSTV plans to support our Petition for Rulemaking and support creation of a General Wireless Microphone Service licensed by rule and open to the general public.

Mind you I expect that MSTV, like the McCain campaign, will continue to get a free ride on this from an obsequious broadcast trade press and a tech press that cannot get past the Great Google Overlords. But they are going to have to file comments on this at some point. And I imagine that, as they come in to lobby against white spaces, the good folks at the Commission will want their opinion on this separate but related matter. I’ll certainly be interested in rading those Ex Partes.

Stay tuned . . .

Credit where it's Due

With the Comcast ruling by the FCC, lots of well-earned congratulations are going ’round. Free Press is getting its props, and Larry Lessig is congratulating Kevin Martin.

But hey, we have our own local hero right here on Wetmachine.

So please join me in three cheers for Harold Feld!

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