Pai

Republican FCC Commissioner Ajit Pai has warned forthcoming court rulings on Net Neturality could set the stage for more active oversight of Internet Service Providers, including a possible ban on usage-based pricing and data caps.

Speaking at the 2012 Annual U.S. Telecoms Symposium at the Phoenix Center in Washington, D.C. Dec. 6, Pai said 2013 will be an important year for broadband policy.

“The most important action probably will not occur either at the FCC or on Capitol Hill,” Pai said. “Instead, it will take place in the federal courthouse about a mile away on Constitution Avenue.”

The D.C. Court of Appeals is currently weighing a court challenge from Verizon that argues the federal agency has no regulatory authority to implement and oversee the open Internet policies that are the cornerstone of Net Neutrality.

Republicans have traditionally been hostile to the concept of Net Neutrality, because it restricts private providers from using network management concepts that could open up new revenue streams. Without Net Neutrality, providers could artificially reduce the performance of certain websites while enhancing others, usually based on financial agreements.

Many Democrats and consumer advocates want Net Neutrality to guarantee that all websites are treated equally, and that paying customers deserve a service unfettered by artificial obstacles or additional expense imposed by providers.

Even if the court finds in favor of Verizon, Pai fears the FCC’s Democratic majority will respond by emphatically asserting its oversight powers, reclassifying broadband as a “telecommunications service.” Since the Bush Administration, broadband has been regulated as an “information service,” subject to more restricted oversight.

“Should the D.C. Circuit uphold the FCC’s order, I would expect to see revitalized efforts to expand the Commission’s regulation of the Internet,” Pai said. “In particular, I would not be surprised if the FCC looked into whether we should stiffen our oversight of the network management practices of wireless broadband providers and whether we should begin to regulate usage-based pricing.”

“Under no circumstance will I support […] reclassification,” he added. “I am convinced that grafting the creaky, burdensome common carrier regulations onto the Internet would dramatically slow broadband deployment, reduce infrastructure investment, frustrate innovation, hamper job creation and diminish economic growth.”

Current FCC Chairman Julius Genachowski has expressed repeated support for usage-based pricing in the market as an innovation in Internet pricing. With the chairman and his Republican colleagues in agreement, it seems unlikely the agency will consider curtailing the practice. So far, the FCC has not even responded to repeated requests to further investigate usage pricing and data caps.

(Image: Science Blogs)

While perusing the website of the chief telecom regulator in this country this afternoon, Cassandra, a rural independent telecom industry regulatory analyst, encountered into the misguided, the confused, and the tinfoil hat crowd overrunning the agency’s electronic comment submission system regarding proposed changes to the nation’s Emergency Alert System (EAS) and government policy regarding broadband regulation.

Chief among them was a public comment from a woman named Denise claiming she was being abused by her husband.

“Denise, you do realize you are looking for psychological help with your abusive spouse in a government rulemaking docket about broadband, right,” Cassandra tweeted.

That was just a preview. In the aforementioned EAS docket, the FCC website proudly promotes one recent comment from Debra, who has yet to figure out how to type in the big box or how to get that caps lock off (we deleted some personally identifying information, although the FCC website retains it, warning the public in advance “the filing you are making is a public filing. Any information that you submit will be available to the general public.”):

Amidst filings from broadcasters, cable operators, equipment manufacturers, and various special interest groups, the very wide variety of submissions from John Q. Public ranged from sober and thoughtful to… well-down the rabbit hole.

A sampler, left unchanged from the originals, except to remove the names of the innocent and embarrassed:

The Anti-Government Crowd:

I think it is an Orwellian-type demonstration by the Federal Government to impose a nation-wide test of the EBS. A “test” would be at 2am. This is clearly a demonstration by the powers that be that government can and will seize power of all communications whenever they see fit.  In the event of a national disaster, the one voice that I want to hear certainly isn’t the government’s.

Those Who Watched that whole Jack Bauer “24” box-set in one weekend:

It concerms me that this annoucement gives terroists an opportunity to take advantage of the test, since no one will be looking for a real notice.

The “You Are Scaring Me” Corner:

Why in the world wouldn’t there be newspaper articles and cable and network news information regarding FCC/FEMAs “big plan?” Do you purposefully WANT to scare the living daylights out of senior citizens? Why would you warn only federal agencies? I beleive there is something more sinister going on that is related to this plan. I am going to make sure that everybody knows about it and that your offices are saying it will not say it’s a test. How interesting that it’s happening right now. If I don’t start seeing news about it in the paper and on TV/radio, I am going to raise hell. Do something now. So far, I have notified fire departments that had no clue, old age homes, and city hall. You people are crazy if you think I’m going to allow a panic in MY town.

The Guy With a Landlord Problem:

I must worst file million of complaints against U.S. HUD Park Tower Apartments, in Portland OR, that they tampered my Facebook that I posted my comments that I do not felt safely reside in this danger situation. I must go in the court at requests for bringing me in justice requests that Park Tower Apartments in foe issues involved with their Facebook addresses. […] (bad employees) made in huge banana noses and bad people of employees with Park Tower Apartments address report to the court immediateness. Please tell U.S. Homeland Security pulls me out of this evil housing addresses because of they used Facebook issues as their employees’ Facebook accounts. Please tell Facebook about Park Tower Apartments in bad employees addresses as notifies to U.S. Senators at requests. thank you for pulling me out of this dangerous housing immediateness!

A loon

The Man on the Run:

NYPd has informed feds that I’m not on their radar but keep getting stalked from place to place. Last place the fire alarms tripped like today was at 500 pearl, street. nyc aug 3, 2011. depts got caught doing this at 339 west 39th feb 28, 2010 . the eavesdropping device went from the phones to the fdny system because fed attys advised me they botched the police brutlaity case in the fbi . this is in court now

I Copyrighted EAS First and the Feds Violated It So I Am Suing for $87 billion

EAS infringes copyright as asserted in lawsuit: […] The ORDER directs the Clerk to issue summonses and directs the U.S. Marshal to serve the Defendants.

Defendants include twenty-four government agencies, government individuals, including Federal Communications Commission and nine corporations sued in the United States District Court Eastern District of Arkansas. The case cites organized theft of intellectual properties asserting the defendants are responsible for massive piracy of multiple copyrighted works that are generating billions of dollars in illegal proceeds in concert with private enterprises causing more than $87 billion dollars in damages to the legal owners of copyrighted intellectual properties.

[…]This case relates to letters by the Plaintiff requesting the United States Attorney General Eric Holder stop government theft of private intellectual property….

“People: the FCC cannot solve all your problems,” Cassandra tweeted. “They have enough of their own.”

Although “soft-launched” several weeks ago in many markets, Time Warner Cable has officially unveiled its holiday gift for 2012: a free 50% speed increase for Standard tier customers: 15/1Mbps service.

The speed increase is now complete across New York, New Jersey, New England, the Carolinas, Virginia and Alabama. Customers can activate the higher speed by briefly unplugging their cable modem for 10 seconds, plugging the cord back in, and in some cases rebooting their computer.

Customers outside of these areas can try this as well. Stop the Cap! has received reports from readers in the midwest, Texas, and California that the speed increase has arrived in their areas as well. All Time Warner Cable systems across the country should be providing the new speed by the end of this month.

Earthlink customers using Time Warner Cable should also see an identical speed increase.

Some Time Warner Cable customers are only now getting upgrades to DOCSIS 3 service, which open the door to 30/5 and 50/5Mbps speed tiers. The latest: Binghamton, N.Y. and surrounding southern tier communities. Customers further upstate have had that option for 1-2 years.

Although Americans are paying higher cell phone bills than ever before, some of America’s largest wireless providers have been saving a fortune, enjoying near-tax-free status thanks to an economic stimulus package that allowed companies to write off expenses associated with expanding their businesses.

Under accelerated depreciation, both AT&T and Verizon have been able to slash tax obligations by claiming deductions for capital investments most analysts believe they would have made with or without the income tax windfall. Despite this, both companies have raised prices and have cut jobs and employee benefits.

Washington lawmakers are now debating tax policies that could reduce or end corporate subsidies and raise their tax payments.

The stimulus incentives were designed to promote spending and investment by large corporations retrenching in the face of the Great Recession. Through a combination of special interest amendments guaranteed to favor certain businesses and creative accounting, the two largest wireless companies in the country wrote off investments originally planned before the stimulus package was enacted.

Without the corporate welfare package, telecom analyst Craig Moffett predicted AT&T would have paid a 35% tax rate over the past four years, amounting to $29.3 billion in taxes. Instead, it paid $13.3 billion total. Last year it paid 0% — nothing.

Verizon Wireless has skirted around its tax bill thanks to its offshore partner Vodafone. By shifting certain money overseas, and through other creative measures, Verizon ended up paying a 6% tax rate — $1.3 billion total taxes in four years. Not bad for America’s largest wireless operator. Two years ago, Verizon was estimated to have paid nothing at all.

Citizens for Tax Justice and the Institute on Taxation and Economic Policy claim corporate tax subsidies effectively cost taxpayers $14.5 billion for AT&T and $12.3 billion for Verizon Wireless over the past four years. Only one company benefited more than AT&T and Verizon: mortgage underwriter Wells Fargo.

If the ability to take accelerated depreciation were to be withdrawn in current tax negotiations, AT&T and Verizon would both find themselves paying taxes at rates comparable to many upper-middle class Americans.

AT&T would see its tax rate rise from 13.3% in 2013 to 29 percent by 2016. Verizon will pay 25% in 2013 and 27% by 2016. Both companies would still continue to aggressively pursue loopholes and other write-offs, including larger contributions to both companies’ pension plans which would reduce cash liabilities.

Verizon and Redbox will launch an unlimited online video streaming service next year that will undercut Netflix’s monthly subscription price and offer discounts off movies rented from Redbox’s ubiquitous DVD kiosks.

Details emerged about Redbox Instant when GigaOm discovered the online help section intended to assist beta test customers was initially available to the public.

Some of the points GigaOM uncovered:

• Subscriptions start at $6 a month, but the number of movies and TV shows available will be considerably smaller than what Netflix offers. There will also be a considerable amount of title duplication between Netflix, Amazon Video, and Redbox Instant;
• For $8 a month, the service will also bundle four Redbox credits redeemable for kiosk rentals, with movie reservations taken online and through mobile apps. Unused credits expire at the end of the month;
• In addition to online viewing, customers can also watch on Android/iOS devices, Xbox 360 and select Samsung Smart TVs and Blu-ray players;
• Newer titles will be available on-demand starting at $0.99 each;

Redbox is accepting e-mail addresses of potential customers interested in more information about the service. It is very possible the venture will expand its beta test, inviting those pre-registered to try the service before it is formally introduced to the public.

Some investors on Wall Street have gotten increasingly jittery about Netflix’s largest competitors, because all of them operate diverse businesses that can help subsidize entertainment licensing costs and still undercut Netflix pricing. Amazon charges $79 a year for its Amazon Prime + Video service. Comcast offers its service at $4.99 per month. Netflix has already been under pressure to raise prices even before signing an exclusive streaming deal with Disney estimated at a value of $300 million per year.

“That figure is ironic to say the least because $300 million is what Starz demanded of Netflix 15 months ago as condition for renewal of that exclusive arrangement, and Netflix turned that bid down,” said Eric Savitz in Forbes. “Now, it appears Netflix is paying $300 million per year for the Disney-branded content which would have been on Starzplay in the first place.”