Tag: fcc

The Federal Trade Commission Gets in on Network Neutrality

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As widely reported, Federal Trade Commission (FTC) Chair Deborah Platt Majoras announced that the FTC will look at network neutrality. In the same paragraph, however, she also expressed her doubts on the need for network neutrality legislation. That, combined with her choice of forum (Progress and Freedom Foundation’s Aspen Summit; PFF is a vigorous opponent of NN), the FTC’s natural bias toward post-conduct remedies rather than prophylactic regulation, and Majoras’ decision to sign off on the Adelphia transaction without considering the voluminous evidence collected by the FCC make me suspect that the FTC will conclude that Congress should take no action and that antitrust solves everything.

A bit more analysis below.

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Back From Vacation And FCC Auction Still Going On . . . .

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As I guessed, the FCC AWS Spectrum Acution continues apace. My two weeks off proving an insufficient time for the wonkiest and most expensive of online multiplayer games — spectrum auctions.

You can track the “action” (as we must call it) here. A quick flip through the current standings yields some interesting patterns so far. The DBS Wireless partnership, Wireless DBS LLC, started with some strong positions on regional licenses. Over time, they have been forced out by Spectrum Co (the Comcast/TW/Sprint group), AWS Wireless (the Salmesi “wild card”) and traditional cell phone cos. Dolan family (Cablevision) took a position in the NYC market (its home base) but also appears to have been knocked out.

A look at the overall stats in round 29 shows that T-Mobile, unsurprisingly, has the lead bid on the most licenses — 129. Spectrum Co comes in nest with 96. After that, there is a significant drop off in the number and nature of licenses held, with traditional cellular companies Cingular and Cricket holding 43 each. Interestingly, AWS is next, with 38. There follows a list of smaller fry with diminishing numbers of licenses in less desirable territories. Of the cable players aside from Comcast/TW, only Cable One (Washington Post) continues to have a presence with 24 licenses.

Unless something dramatic happens, the auction is unlikely to yield a drisuptive player/new competitor (unless one counts Spectrum Co).

More after I unpack and look at the stats.

Stay tuned . . . .

Handicaping This Week’s Big Spectrum Auction

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And what a long strange trip its been to get here! In 2004, Congress passed the Commercial Spectrum Enhancement Act (CSEA), which required government users to vacate some choice spectrum so the FCC can auction it. You can see the FCC’s official page for this auction here. You can see my recent general musings on this auction on the Public Knowledge policy blog here.

But none of this tells the whole story. After two controversial rulemakings, a pending legal challenge, and the appearance of a host of new bidders, FCC Auction 66: AWS-1 is ready to start this week on August 9. A look at the list of who has come to play signals an auction of unparalleled visciousness, determination, and probable manipulation by sophisticated bidders because the FCC wussed out and did not adopt anonymous bidding.

For those interested in my handicaping what a report from the Center for American Progress describes as a corrupt means by which incumbents keep out competitors and what I have called “a really wonky version of Worlds of Warcraft,” read on!

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Too bad this didn't happen last week

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Apparently, Comcast’s video on demand (VoD) version of ABC’s July 14 “Nightline” did not match the actual show. According to this report, the Comcast version on VoD eliminates a rather embarassing minute of film for Comcast. Was it deliberate censorship or an encoding error from ABC, as Comcast claims? We may never know for sure, but I wish it had happened last week while the FCC was still considering whether our claims that Comcast might censor news to millions if the FCc approved the Adelphia transaction were merely “idle speculation.”

More below . . . .

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Adelphia Decided

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I was off at my cardiologist getting a stress test, so I missed this. Happily, I had crammed the night before and passed with flying colors! Because today’s FCC meeting was, from all descriptions, totally surreal — including a shout out to yr hmbl obdnt blogger!

Short substance review: The FCC did not adopt a network neutrality condition, they did not adopt a condition on PBS Sprout, allowing Comcast to get by with a voluntary commitment to make the programming available on a non-exclusive basis for the next three years. They acted on the Washington Nationals, and gave a nod to leased access.

More details, and further implications, below . . .

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The Adelphia Day of Judgment Comes

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For over a year now, I’ve intermitently tracked the transaction between Comcast and Time Warner for the bankrupt Adelphia systems. At tomorrow’s open meeting (assuming no last minute delays for further negotiations), the FCC will issue its decision.

How we got here, what happens, and why you should care below.

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Meanwhile….Back at the FCC….

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The forces of media consolidation continue to make headway now that the FCC has a full contingent of 3 Republicans and 2 Democrats. At the June 21, 2006 meeting, the FCC, by 3-2 vote, began the process of reexamining the rules on broadcast media ownership. Last week, the proposed order approving the Adelphia transaction began circulating. It has a very narrow outlook and very meager conditions (so far). Procedural moves by Martin could cut off any further public debate or input as early as this Thursday (July 6).

But all is not yet lost. Chairman Kevin Martin had also intended to adopt a rule requiring cable operators to carry the additional digital streams of broadcasters after the DTV transition, the so-called multicast must-carry. The Dems have long refused to go along unless the Commission also resolved the long-pending proceeding to define new public interest obligations for digital broadcasters. Martin had long made it clear that he did not intend to impose any new obligations on broadcasters, and that as soon as he had a third Republican, he would ram through multicast without public interest obligations.

But it didn’t happen. Robert McDowell, the new Republican Commissioner, refused to go along. Either because he didn’t like the idea, or because he didn’t like getting pushed so hard so quickly on a controversial matter, McDowell refused to vote “yes” on the multicast item. As a result, Martin pulled the item from the June meeting.

What will McDowell do on Adelphia? With the Dems dead set against approval without firmer conditions, Martin needs both Rs to toe the line.

More analysis and speculation below . . . .

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Bracing for the House COPE Vote

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The House will likely vote tomorrow (Fri. June 9) on the Communications Opportunity Enhancement Act (COPE). In fact, the vote may come as early as tonight.

According to the report from the Rules Committee, the House has set debate for one hour and approved a number of amendments. The critical amendments for network neutrality are the Markey amendment (D-MA) and an anti-trust savings amendment introduced by Lamar Smith (R-TX) that clarifies that COPE will not preempt anti-trust law (NB: This is not the much stronger Sensenbrenner-Conyer Bill which passed out of Judiciary.

As discussed below, the Rules Committee (which responds to the House Republican leadership) has done its best to stack the odds against NN. Unsurprising, since Speaker Hastert (along with Commerce Chair Barton and Telecommuniations Subcommittee Chair Upton) support COPE and oppose NN. Expect the Smith Amendment to pass, the Markey Amendment to lose, and COPE to pass. Public pressure may still swing some members, but the odds of swinging enough members are vanishingly small.

As I wrote after the loss at the Commerce Committee, we citizens will make the difference. We have gained much ground in the last two months. We now carry the battle to the Senate, where the rules help curb the power of one or two majority leaders to force through legislation.

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And Suddenly, the Universe Changed

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Well, it’s been busy in the Senate today. While all the Senators were locked down by police on a mistaken report of gunfire, they took the time to confirm Robert McDowell for the FCC. For the first time since Michael Powell left in March 2005, the FCC is now back to 3 Republicans and 2 Democrats.

Over the last year, several controversial items have accumulated that the 2-2 Commission could not agree upon. For example, the long-awaited proceeding on media ownership rules, wherein the FCC will again try to relax or eliminate most ownership limits.

Critically, McDowell’s appointment strengthens Martin’s hand to approve the Comcast/Time Warner/Adelphia merger without significant conditions (whereas just yesterday I was hoping Martin would have to persuade the Democrats to agree to an order). The critical question — does Martin want to approve the merger without conditions? As I have written before, Martin has shown himself willing to stand up to the cable industry in the name of competition. For example, Martin co-authored an Op Ed with Senator McCain supporting imposing a la carte on cable.

So, what will Kevin Martin do? He has a free hand for the first time in his history as Chairman. Once again, I urge you all to help Martin make the right decision by following this link to file a comment urging the FCC to deny the Adelphia Transaction, or impose significant conditions.

As for the rest of the media ownership rules, the AT&T/BellSouth merger, and everything else in the media & telecom world

Stay tuned . . . .