Broadcasters Outmaneuver White Space Broadband Advocates; Lawyers Will Benefit the Most

Phillip Dampier January 5, 2012 Competition, Editorial & Site News, Public Policy & Gov't, Wireless Broadband Comments Off on Broadcasters Outmaneuver White Space Broadband Advocates; Lawyers Will Benefit the Most

Static isn't just for the UHF dial, it's for powerhouse lobbying groups, too.

While surface reporting on “white space” broadband and “super Wi-Fi” seem to suggest the United States is on the cusp of opening up much of the UHF television dial to wireless broadband, behind the scenes broadband advocates are fretting about being outmaneuvered by the powerful broadcast lobby.  The theory behind “white space” broadband seems simple enough.  Anyone who has flipped channels up and down the UHF dial sees a lot of unused real estate.  While most cities receive 5-10 UHF TV channels, there are dozens of apparently empty channels filled with what seems to be nothing at all. Can’t we make more efficient use of the UHF dial and open the excess to other uses?

The FCC has been studying just that, with the proposition that broadcasters could be relocated closer together or agree to sell their broadcast license and sign off the air for good.  Theoretically, the UHF dial would be reduced to channels 14-30.  Stations on channels 31-51 would have to relocate down the dial to make way for broadband.

That was the plan anyway

Naturally, the National Association of Broadcasters (NAB), the broadcast industry lobbying group, was not happy to learn of this plan, which is still heavily promoted by wireless telecommunications companies.  They quickly argued there were not enough UHF channels left to accommodate every TV station on the air today, and some cities bordering Canada faced losing major stations if the plan was adopted.

In the clash of the lobbying titans, it appears broadcasters have at least temporarily won the upper hand.  Legislation authored by the powerful House Communications Subcommittee Chairman Greg Walden (R-Ore.), would grant the FCC authority to conduct spectrum horse-trading and auctions, but only if the sales take “all reasonable efforts to preserve” the coverage area of impacted broadcast stations.

In the minds of several wireless broadband advocates, “reasonable efforts” kills it. That key passage is open to wide interpretation, which in Beltway language means a full employment program for Washington law firms who will end up letting a judge decide what “reasonable” really means.

Blair Levin

Blair Levin, an attorney who served as chief of staff to FCC Chairman Reed Hundt from 1993 to 1997, where he oversaw the implementation of the disastrous 1996 Telecom Act, is all sour grapes about the latest developments in Congress.  That is to be expected — he was once considered the Obama Administration’s chief “broadband czar.”

“The legislation ties the FCC’s hands in a variety of ways,” Levin tells TVNewsCheck. “It opens it up to litigation risk, which then, in conjunction with the other handcuffs, makes it difficult to pull off a successful auction. The nature of the bill dramatically increases the probability that there will be less spectrum recovered and less money for the [U.S.] Treasury.”

Broadcasters have been legitimately worried about where they might fit within the new, slimmed-down UHF dial.  The more broadcasters packed closer together, the greater the chance of interference and reduced signal coverage for those who happen to live between two cities sharing the same channel number.  The NAB has consistently opposed forcing station-owners’ hands and wants stations compensated for their costs and inconvenience.

Before the first “white space” broadband signal takes to the airwaves, the government will have to set aside at least $3 billion to defray expenses incurred by television stations moving down the dial.  With language that guarantees broadcasters won’t have to suffer from an interference nightmare, FCC engineers will have a much harder time finding enough channels for the number of stations that need to move.  That could mean fewer channel positions up for auction.

Blair believes stations can extract even more by playing the litigation threat card.

“Nobody wants to go to an auction when there is the threat of a judge anywhere having the ability of holding it up,” Blair said. “I believe a good lawyer could find a way to get the question of  whether the FCC took all reasonable efforts in front of a judge. If you are designing the auction and a big law firm shows up and says, ‘If you don’t take care of my single broadcaster, we are going to find a way to get to court.’ That’s a real threat.’’

The Lady Gaga problem

Lady Gaga's wireless microphone malfunction.

Assuming Washington can fling enough cash to soothe the nerves of worried broadcasters, impediments to white space broadband don’t stop with the local Fox station.  The next complication is the wireless microphone issue.  When you see Lady Gaga in her latest outrageous outfit, you probably are not noticing her wireless microphone.  Performers of all kinds use these low power devices that often work over unused UHF spectrum.  Only it may not be unused for long.

Spectrum Bridge, a “white space” database administrator charged with coordinating who is using what frequency for what purpose, understands the challenges of trying to keep track of TV reporters, bands on tour, and other wireless microphone users, who all expect an interference-free experience.  Electric companies and municipalities also plan to utilize white space spectrum to manage smart city and smart grid communications.  A year later, Super Wi-Fi applications that deliver longer distance Wi-Fi service are expected to arrive.

It’s becoming a crowded neighborhood.

Congress’ NAB-friendly, Republican-sponsored bill may be modified substantially in a Democratic-controlled Senate, and there is still plenty of time for lobbyists to work their magic.  But it’s safe to say that those who have waited at least seven years for white space broadband to become a reality will have to wait a little longer.

South Korea Set to Launch 100Mbps Wireless, Seamlessly Combines Mobile Broadband & Wi-Fi

Phillip Dampier January 5, 2012 Broadband Speed, Consumer News, Wireless Broadband Comments Off on South Korea Set to Launch 100Mbps Wireless, Seamlessly Combines Mobile Broadband & Wi-Fi

While you ponder Verizon Wireless’ latest LTE 4G outage or try to convince yourself Sprint really is selling “4G” service from Clearwire, South Korea’s Sunkyoung Telecom (SK Telecom) is deploying new technology to enormously boost wireless Internet speeds to as high as 100Mbps.

SK Telecom has developed new Heterogeneous Network Integration Solution (HNIS) technology that weds 3G/4G service with any open Wi-Fi network to deliver speeds many times faster than North Americans can get from their wireless providers.  The technology is designed to work without a lot of consumer intervention.  For example, HNIS will automatically provision open Wi-Fi access wherever subscribers travel.  The combination of mobile broadband with Wi-Fi works seamlessly as well.  Currently, smartphones can use Wi-Fi or mobile data, but not both at the same time.  HNIS changes that.

While mobile operators cope with spectrum and capacity issues, HNIS can reduce the load on wireless networks, without creating a hassle for wireless customers who used to register with every Wi-Fi service they encountered.  The theoretical speed of an HNIS-enhanced 3G and Wi-Fi connection in South Korea will be 60Mbps when SK Telecom fully deploys the technology this year.  As SK expands the technology to its 4G networks, theoretical maximum speeds will increase to 100Mbps.

SK is so confident in the technology, it plans to equip all of its smartphones with the new technology starting in 2013.

Byun Jae-Woan, CTO of SK Telecom said, “SK Telecom will provide customers with a data service of much greater speed with Heterogeneous Network Integration Solution, which represents one of the company’s world’s top-level network operation technologies. By realizing the speed of fixed-line services with wireless networks, SK Telecom will allow its customers to experience a new and innovative mobile life.”

Operators like AT&T are installing their own Wi-Fi hotspots in heavy use areas to try and offload data traffic to Wi-Fi.  But customers have to make the connection themselves. HNIS quietly handles this process in the background while staying in touch with SK’s 3G and 4G networks to maintain a consistent data connection.

 

Former Cablevision COO Hits Pay Powerball as New CEO of Charter: $90+ Million Salary

Phillip Dampier January 5, 2012 Charter Spectrum, Consumer News Comments Off on Former Cablevision COO Hits Pay Powerball as New CEO of Charter: $90+ Million Salary

Payday for Rutledge

Cablevision’s former chief operating officer Tom Rutledge has hit executive pay Powerball, scoring a compensation package worth more than $90 million dollars as the incoming CEO of formerly-bankrupt Charter Communications.

Documents filed with the Securities and Exchange Commission reveal why Rutledge abruptly resigned from his position at Cablevision on Dec. 15.  Just four days later, Charter announced Rutledge would become its new CEO this February, replacing Mike Lovett who earlier announced his departure plans.

Rutledge will be extremely well compensated in his new position, scoring $8,000 a week in walk-around money until February when the executive suite opens up.  After that, his base salary will amount to $2 million annually, with yearly increases possible.  But the real money will come from Rutledge’s bonus and incentives package.  In addition to an annual bonus worth up to $3.5 million annually, Rutledge will also get more than one million shares of Charter stock, worth more than $70 million at present.  If Rutledge focuses on boosting that stock price, he could earn considerably more.

That’s a remarkable pay package for a cable company that declared bankruptcy just two years ago.  It’s also a lot more money for Rutledge, who collected just over $28 million at his old job at Cablevision.

In 2010, soon-to-be-former Charter CEO Mike Lovett earned just under $11 million in total compensation.

Argentina Slams the Door on Skyrocketing Cable Rates: Basic Cable Prices Fixed At $27/Month

Phillip Dampier January 5, 2012 Competition, Data Caps, Public Policy & Gov't Comments Off on Argentina Slams the Door on Skyrocketing Cable Rates: Basic Cable Prices Fixed At $27/Month

Argentine President Cristina Fernández de Kirchner

The Argentine government has a solution to stop the skyrocketing of cable television rates in the country: it regulates them.  Now the country’s Secretary of Commerce Guillermo Moreno has ordered Cablevision SA, one of the country’s largest media companies, to freeze basic cable rates at 116 Argentine pesos ($27US) for 2012.

The cable company won a 7 pesos rate hike last September, but there were indications further rate hikes were forthcoming.  Argentine President Cristina Kirchner has engaged in a long-running feud with several large Argentine conglomerates over what she feels is their abuse of market power.

Kirchner has specifically targeted super-sized Grupo Clarín, Cablevision’s parent company, for its relentless rate hikes.  The conglomerate now earns close to two-thirds of its revenue from selling cable TV and broadband Internet.

Kirchner considers corporate monopoly control of broadband to be especially dangerous for the Argentine economy, and her administration is seeking to force Grupo Clarín to divest itself of its broadband business with the passage of several media laws.

Cablevision defends its rate increases, noting Argentina’s inflation rate is currently as high as 25%.  But government officials have the power to suspend or rollback rate increases it determines are unfair or come as a result of Cablevision’s market power.

The $27 a month Cablevision subscribers currently pay for basic cable buys a comparably-sized cable package that North Americans pay more than double that amount to receive:

Channel Network
2 A24
3 26 Noticias
4 Crónica TV
5 C5N
6 Encuentro
7 Somos La Plata
8 Canal 9
9 América
10 Telefe
11 TN – Todo Noticias
12 El Trece
13 Metro
14 Magazine
15 Canal 7
16 ESPN+
17 TyC Sports
18 Fox Sports
19 ESPN
20 El Garage
21 Disney Channel
22 Nickelodeon
23 Cartoon Network
24 Disney XD
25 Discovery Kids
26 Boomerang
27 Disney Junior
28 Cinemax
29 Studio Universal
30 Volver
31 Space
32 Cinecanal
33 TNT
34 I.Sat
35 The Film Zone
36 FOX
37 Sony
38 Warner Channel
39 Universal Channel
40 AXN
41 FX
42 A&E
43 Europa, Europa
44 Liv
45 TCM
46 MGM
47 Infinito
48 Sony Spin
49 Utilísima
50 elgourmet.com Sur
51 Glitz
52 Cosmopolitan TV
53 E! Entertainment
54 Canal Rural
55 National Geographic
56 Discovery Channel
57 Animal Planet
58 Discovery Home & Health
59 The History Channel
61 TruTV
66 Canal (á)
67 Film&Arts
68 CNN en español
69 MTV Sur
70 Quiero música en mi idioma
71 MuchMusic
72 VH1 Sur
73 CM El canal de la música
74 RAItalia
75 TVE
76 Galicia TV
77 El Canal de las Estrellas
78 EWTN
79 Argentinisima Satelital

 

‘HBO/Max Go’ Online Video is Here for Some Time Warner Cable Customers

Phillip Dampier January 5, 2012 Consumer News, Online Video Comments Off on ‘HBO/Max Go’ Online Video is Here for Some Time Warner Cable Customers

HBO's Go service streams HBO movies, specials, and series to "authenticated" HBO subscribers

Time Warner Cable began testing its HBO and Cinemax Go “TV Everywhere” online video services Wednesday, starting with a private beta test for their super-premium Signature Home customers who pay $199+ for cable, broadband, and phone service.

Signature Home customers signed up for HBO and/or Cinemax will receive e-mail from the company that includes login instructions for the authenticated video service, which will be included in the cost for both premium channels.  Customers must subscribe to one or both premium channels for access.  Time Warner Cable’s Jeff Simmermon says other Time Warner Cable premium channel subscribers will get access as soon as next week.

For now, Time Warner’s implementation of the online video services will support Mac and PC computers.  Tablet and smartphone owners will have to wait for respective apps coming at a later date.

The cable company’s gradual rollout of the streaming video service is designed to prevent subscribers from overloading the company’s servers, which happened with the introduction of its iPad online viewing app.

“Rather than spend time aggregating a large list of volunteers across our footprint, vetting them against various eligibility requirements, and making sure that each of our markets is equally represented to arrive at a final approved master list, we’re going with all SignatureHome customers,” Simmermon said. “This will allow us to take a representative sampling from across all markets — which have varied tech infrastructures — without overloading our systems.”

Time Warner is one of the last major cable operators to unveil the premium movie channel streaming service.

More than 1,400 movies, specials and series are available for streaming from HBO Go.  Cinemax’s counterpart is more limited — just over 400 movies and soft core adult entertainment from its Max After Dark series.

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