video services – Wetmachine

Comcast to Illinois: I loves Me The Market Power!

Harold March 7, 2008 March 7, 2008Cable, Tales of the Sausage Factory

As reported on BroadbandReports.com, Comcast has greeted former Insight customers transferred to Comcast as part of unwinding a partnership with a 6% rate hike. Thanks to all the delightful cover given to Comcast by Congressional Republicans, who declare that all is “A OTAY” in Cableland, the Comcast guys are no longer even pretending that the rise in rates has anything to do with cost. Rather, as Comcast rep Libbie Steh told the Springfield Journal Register in a rare attack of honesty: “increased costs are not a factor this year.” Rather:

“Comcast periodically reviews prices and adjusts them to reflect what’s in the marketplace,” Stehn said.

More below . . . .

Potentially Much More At Stake In Michigan Than PEG — NAB, PBS and Folks Worried About Bundling of Services Better Wake Up And Pay Attention!

Harold January 14, 2008 January 14, 2008Cable, Tales of the Sausage Factory

Compared to the primary battles in Michigan, the fight between Comcast and local governments about Comcast’s decision to migrate Public Educational and Government (PEG) channels to digital seems like small potatoes. But potentially, the lawsuit filed by the cities of Dearborn and Meridian in local federal court could have huge impact on how cable operators carry broadcast television and even how they bundle video services with their voice and broadband offerings.

For those just tuning in: Comcast has decided take advantage of Michigan’s franchise reform law and forcibly migrate PEG channels to digital tier, which will require anyone who wants to see PEG channels to get a digital box and will put the PEG channels waaaay up the dial where channel surfers rarely tread. This has prompted angry protests by city officials, and even a reprimand from House Commerce Chair Rep. John Dingell (D-MI). While other cable operators have used such tactics in the past, Comcast appears to be the first operator to do this for an entire state at once.

As a result, Dearborn and Meridian challenged Comcast’s right to move the PEG channels without consent by the localities in federal court. But while this focus remains on PEG, it goes much further. In 1992, Congress mandated that cable operators must offer subscribers a “basic tier” that consists of the broadcast channels and PEG channels. Congress also prevented cable operators from bundling this “basic tier” with any other service or “buy through.”

For reasons having to do with the Telecommunications Act of 1996, cable operators may no longer need to offer a “basic tier.” But if that’s true, what does that mean for broadcasters? Can cable operators forcibly migrate broadcast channels in the same way they claim they can forcibly migrate PEG? And — looking ahead — does that mean that cable operators will have the freedom to change how they bundle packages? Right now, cable operators generally offer their basic video product and then offer all manner of additional services. But what happens if the “basic tier” requirement is really dead? Will we see cable operators get more aggressive, forcing customers to take additional services if they want video programming?

From where I sit (which is really just looking at the plain language of the statutes), it’s a real muddle. I’m glad I’m not litigating. But if I were the NAB and PBS, I’d start paying real close attention here. Otherwise, they may wake up and discover that they are also going on a forced march migration to digital, even if they can keep their channel position and not end up in the 900s.

Analysis below . . . .

Did the Bells Rip Off America? and Is There An Alternative?

Harold February 5, 2006 February 24, 2013General, Tales of the Sausage Factory

I want to put two pieces side by side here: Bruce Kushnik’s magnum opus The $200 Billion Broadband Scandal, accusing the Bell Companies of ripping off the U.S. public to the
and Bob McChesnney’s and John Podesta’s visionary Let There Be Wi-Fi talking about the power of unlicensed spectrum as a broadband solution.

I hope USA Today got it wrong on Kevin Martin and local franchising of telco video.

Harold August 23, 2005 February 24, 2013General, Tales of the Sausage Factory

After a brief vacation from the 21st Century, I am back on the job and as puzzled as ever by this USA Today story.

Telecom Act Rewrite — I've Always Depended on the Kindness of Monopolies

Harold July 27, 2005 February 24, 2013General, Tales of the Sausage Factory

I’ve just read through the “Broadband Investment and Consumer Choice Act” (72-page pdf available here) introduced by Senator Ensign (R-NV) (and co-sponsored by Senator McCain, to my intense disappointment). In the name of deployment of broadband, consumer choice, free markets, yaddah yaddah yaddah, the bill strips the states and local governments of any consumer protection function and frees your local monopoly providers to serve you! Oh, and without the danger that your local government might decide to supply a pesky competitor. After all, we wouldn’t want you, the local citizen, to decide to foolishly waste your own tax dollars! We, the federal government, know best! Ain’t federalism grand? Except, of course, when it isn’t . . .

How SBC Lost TX- And What It means More Broadly

Harold June 12, 2005 January 25, 2012Tales of the Sausage Factory

Sorry to all, especially John, for being on an unintended hiatus. Got lots poppin’ at work and at home.

In a down to the wire fight, SBC suffered major defeat in Texas on two major legislative initiatives: one to prohibit municipal broadband, the other to remove local franchising requirements for their new fiber systems. In response, SBC Alum and wholly owned subsidiary Pete Sessions (R-TX), to introduce a new federal anti-muni bill, reconfirming my view that most major corporations behave astounding like 6 year old children.

How the Bell companies blew it represents a fascinating case study. Contrary to what a few folks have suggested, it was not an �accident�. In fact, it may, possibly, suggests some interesting things about how progressive politics (by which I do not mean �Democratic Party� I mean genuinely progressive regardless of party) may work for the next few years. My lengthy random musings below . . .