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Senate Approves Resolution 52-47 to Nullify Net Neutrality Rollback

Phillip Dampier May 16, 2018 Net Neutrality, Public Policy & Gov't Comments Off on Senate Approves Resolution 52-47 to Nullify Net Neutrality Rollback

The Senate approved a resolution on a largely party line vote Wednesday that sends a symbolic message to the FCC it erred when it voted to repeal net neutrality.

The final vote pitted all 49 Democrats against all but three Senate Republicans to condemn the FCC’s decision to rollback the rules, scheduled to take effect in June. The three Republicans that joined the Democrats in favor of preserving net neutrality were Susan Collins from Maine, Lisa Murkowski from Alaska, and John Kennedy from Louisiana — the latter two a surprise.

“Today is a monumental day,” said Sen. Edward Markey (D-Mass.) during debate over the resolution. “Today we show the American people who sides with them, and who sides with the powerful special interests and corporate donors who are thriving under this administration.”

The measure faces a much tougher fight in the Republican-dominated House, where it may have trouble even coming up for a vote.

Using the Congressional Review Act, a law that permits Congress to revisit — and reject — decisions by federal agencies within 60 “session days” of their approval, Democrats drew a clear line in favor of net neutrality, which may become an issue in the midterm elections if the Republican-controlled House refuses to bring the measure up for a vote. If the measure passes the House, it will require the signature of President Trump to take effect. That may be unlikely, considering the president once claimed net neutrality was a plot by the Obama Administration to gain control of the internet.

Kennedy explained his vote in favor of net neutrality as an issue of trust.

“You either trust your cable company or you don’t,” Kennedy explained. “If you trust your cable company, you won’t like my vote. Under the 2017 order, a cable company can censor, throttle, or employ fast lanes so long as it discloses. The response from the other side of that is, well, just switch cable companies. But 22% of Louisianans and 19% of all Americans have access to only one internet service provider that can provide the minimum FCC mandated speed. So what are they going to do?”

FCC Chairman Ajit Pai reiterated his belief net neutrality protections were not needed and would deter investment by cable and telephone companies in their networks, a claim hotly disputed by consumer groups that point to evidence investment rose even after net neutrality took effect.

The issue of keeping the internet free and open remains bipartisan, with wide percentages of Republicans and Democrats in favor of net neutrality. That may put Senate Republicans who voted against the measure and are up for re-election on the hot seat this fall.

NPR:

This issue doesn’t cut along clean party lines, said Steven Kull, who runs the Program for Public Consultation at the University of Maryland and has studied public attitudes on net neutrality. The program’s research has found that majorities of Americans support government-mandated net neutrality protections.

“People are on the Internet a lot and it’s a big part of their daily experience and the prospect that it will be changed in some fundamental way is disturbing to quite a lot of them,” Kull said.

Fear is a great motivator for voters. Senate Democrats believe their resolution that put every Democrat on record in support of net neutrality — and most Republicans on record against it — can turn what was once considered a wonk issue, into a wedge issue this November. “People underestimate the passion of Internet voters, at their peril. They are mad, and they want to know what they can do, and this vote will make things crystal clear,” he said.

AT&T to Introduce DirecTV Satellite Service… Over the Internet

Phillip Dampier May 16, 2018 AT&T, Competition, Consumer News, Online Video Comments Off on AT&T to Introduce DirecTV Satellite Service… Over the Internet

DirecTV’s satellite lineup, delivered over the internet.

DirecTV satellite customers with broadband connections might be able to scrap their satellite dishes and set-top equipment when AT&T launches its broadband-delivered version of DirecTV by the end of 2018.

AT&T Communications CEO John Donovan made the announcement at the MoffettNathanson Media & Communications Summit on Tuesday, telling the audience the lineup would be nearly identical to the satellite TV packages customers get today from DirecTV’s satellite dish service.

Customers who opt to dump their dish may also save money by moving their subscription to a broadband platform. Currently, AT&T sells DirecTV for $120-200 a month, depending on equipment and channel lineup. The broadband equivalent, which will not require any expensive set-top box equipment and will rely on a cloud-based DVR, will sell for $80-90 a month.

DirecTV satellite packages (new customer promotional rates — regular prices are higher)

“We won’t roll a truck,” to install a satellite dish, Donovan said. “The [equipment costs] will be cheaper. It will be a thinner, lighter version and we will have lower operating costs. We anticipate passing [on] a lot of those cost savings [to customers].”

Donovan believes a transition away from satellite will be a win-win for the company and consumers because both will face lower costs. It also gives DirecTV the chance to expand, marketing its full video lineup to customers who can’t get a satellite signal, don’t want a dish, or live in a building that restricts satellite equipment.

“It will extend our footprint,” Donovan said at the MoffettNathanson event. “It will not only have a lower price point, but it will have margins that are similar and, therefore, better returns because there will be less upfront costs.”

With today’s announcement, AT&T will have at least five different video products on offer for consumers: DirecTV satellite service, DirecTV over broadband, DirecTV Now — a slimmed down package targeting cord-cutters, U-verse TV — AT&T’s traditional cable TV package, and AT&T Watch — a forthcoming ultra-slim offering that will cost $15 a month for non-AT&T wireless customers. Existing AT&T wireless customers will get Watch free of charge, if they have an unlimited data plan.

Senate Republicans Back Telecom Industry-Friendly Measure to Rush Merger Reviews

Phillip Dampier May 16, 2018 Competition, Public Policy & Gov't Comments Off on Senate Republicans Back Telecom Industry-Friendly Measure to Rush Merger Reviews

Sen. Lee

Several key Republicans are backing a corporate-friendly measure that would hurry the Federal Trade Commission, the Department of Justice, and the Federal Communications Commission through merger reviews, likely leading to less scrutiny of multi-billion dollar merger and acquisition deals that could ultimately cost consumers billions.

Retiring Sen. Orrin Hatch (R-Utah), Mike Lee (R-Utah), Thom Tillis (R-N.C.) and Chuck Grassley (R-Iowa) are the key backers of the “Standard Merger and Acquisition Reviews Through Equal Rules (SMARTER) Act,” a bill that would amend the Clayton Act and Federal Trade Commission Act to align the standards and processes for the Federal Trade Commission’s (FTC) and Department of Justice’s (DOJ) review of proposed mergers and acquisitions.  The SMARTER Act claims it will eliminate bottlenecks that sometimes hold up merger reviews at the DOJ and FTC, and require agencies like the FCC to speed up merger reviews.

Sen. Hatch

Republicans claim corporations are being unfairly treated by excessive regulator scrutiny and delays of merger and acquisition transactions. Because different agencies have their own procedures about reviewing such deals, and federal agencies like the FCC are likely to put deals on hold when companies stonewall the Commission over document requests, Republicans are complaining about bureaucratic holdups. Supporters also claim that current delays associated with merger reviews “fuel politicization” of deals by politicians, consumer groups and media personalities, giving them time to organize public opposition and mount coordinated challenges.

Without a fully enforced shot clock, the FCC “creates uncertainty for transacting parties and effectively enables the FCC to evade judicial review,” bill supporters add.

The FCC already has a limit on open-ended merger reviews — its 180-day “shot clock” that requires mergers be approved or denied within six months. The FCC’s shot clock carried some built-in protection for its integrity, however, by including the power to pause the clock if companies attempted to “run out the clock” by slow-walking requested documents or stonewalling the Commission on other requests. The SMARTER Act would make it easier for companies facing a difficult review to wear down regulators by stripping away the agency’s power to put its shot clock on hold. Instead officials at the FCC would be required to make frequent trips to court to win permission from a judge to stop the clock while waiting for receipt of documents or reviewing merger objections. If the merger is ultimately turned down, the Republican bill also offers corporations the opportunity to streamline any court challenge by eliminating the step of first holding a FCC administrative law judge hearing.

Republicans have overwhelmingly favored The SMARTER Act, with Democrats almost universally opposed. In the previous Congress, House Republicans voted nearly unanimously for the bill. But the bill died after facing opposition in the then Democratic-held Senate. This term, Republicans control all branches of the federal government, giving the bill a better chance of becoming law.

Sen. Tillis

The SMARTER Act is heavily favored by the country’s top telecommunications companies, many that would directly benefit from its passage. No company would stand to benefit more than AT&T, which has seen several high-profile merger and acquisition cases fall apart before regulators. The bill strips away several layers of antitrust protection for consumers that were used to stop several multi-billion dollar telecom company mergers, and scared off others from trying.

The DOJ was instrumental in stopping AT&T’s acquisition of T-Mobile, and combined skepticism by the FCC and the DOJ forced Comcast to withdraw its proposed acquisition of Time Warner Cable. If the SMARTER Act becomes law, internal agency reviews of challenges to a merger will be eliminated. Merger opponents will have to file challenges to mergers in federal court instead. Such a law would have offered AT&T a dramatically better chance that its merger with Time Warner, Inc., would have been approved months ago without a court proceeding.

Two of the Republican FCC commissioners issued statements applauding the proposed legislation.

“Among other improvements, the bill includes two key reforms to the FCC’s merger review process that I have longed championed: setting a non-aspirational, 180-day shot clock for agency review of license transfers and addressing the abusive practice of designating an application for hearing to the Administrative Law Judge (ALJ), which effectively serves to kill a transaction,” wrote Commissioner Michael O’Rielly. “Applicants deserve a timely, complete, fact-based, and straightforward answer from the Commission – not one built on interminable delays or shady denials.”

“I applaud Senator Lee for working to ensure that good government is the law of the land,” said FCC Commissioner Brendan Carr. “With the SMARTER Act, Senator Lee would put the Federal Communications Commission on a shot clock and thus codify the agency’s commitment to open, transparent, and timely decision making.”

Although supporters of the measure claim it will eliminate disparate treatment of mergers and speed their review, critics contend the bill is a “solution in search of a problem.”

The American Antitrust Institute slammed the bill as lacking any foundation to prove its case. AAI conducted an exhaustive review of merger deals that came before the DOJ or FTC and found very few companies ever ran into opposition of their merger deals in the first place. From 2001-2014, businesses enjoyed a 97.5% chance their deals would be approved without challenge and a 96.7% chance their mergers or acquisitions would be approved without a second request.

Sen. Grassley

“The enforcement data suggest many things, but one of them is definitely not what the SMARTER Act purports to cure: an ‘unfairness’ caused by differences in standards and procedures at the FTC and DOJ,” wrote Diana Moss, president of AAI. “On the contrary, the SMARTER Act would create uncertainty and new litigation to solve a problem that, empirically, does not exist.”

Critics of the measure suspect the Republicans have a larger agenda in mind – curtailing government and regulatory oversight of public interest antitrust enforcement. AAI summarized their concerns:

First, the FTC’s use of administrative powers should be carefully safeguarded, because it has contributed critically to the effective shaping of U.S. merger policy without detracting from the speed or effectiveness of merger review.

Second, any difference in the preliminary injunction standard is more theoretical than real, and if a uniform standard is to be adopted, it should be the FTC’s standard, which allows the agency to obtain a preliminary injunction “[u]pon a proper showing that, weighing the equities and considering the Commission’s likelihood of ultimate success, such action would be in the public interest.”

Third, any change in the law may have harmful unintended consequences, including unnecessarily burdening the federal judiciary with new litigation over the meaning and value of the body of legal precedent involving merger cases brought by the FTC in federal court under the existing standard.

SMARTER Act by Senator Mike Lee on Scribd

DirecTV Now Launches Free 20-Hour Storage DVR Service to Customers

Phillip Dampier May 15, 2018 AT&T, Competition, Consumer News, DirecTV, Online Video 3 Comments

AT&T’s DirecTV Now service has introduced its long-awaited cloud storage DVR service to its streaming customers, offering 20 hours of recording space for no additional charge.

“True Cloud DVR” has been in beta testing for about 10 months as AT&T built up its streaming platform and squashed several persistent bugs afflicting recordings. With today’s introduction, DirecTV Now customers will have access to a time-shifting DVR with true fast-forward and rewind features without having to pay extra for the service. But recordings will expire after 30 days.

Later this summer, AT&T will offer customers a $10 optional upgrade to 100 hours of DVR storage space and the ability to store recorded shows for up to 90 days.

DVR service is just one of several changes introduced today by DirecTV Now:

  • A complete app refresh, emphasizing the viewer’s favorite shows and networks.
  • The option to add a third concurrent stream for an additional $5 a month.
  • Over 25,000 on-demand titles and much faster availability of some TV shows for on-demand viewing – as little as minutes after airing.
  • Users will be able to access their local stations while traveling outside of the area.

The upgraded look and new features are available starting today for iOS and tvOS users and web users. Android, Fire TV, and Roku devices will see upgrades in the weeks ahead.

 

T-Mobile/Sprint Merger Promises Fake 5G Initially; Only Slightly Better Than 4G LTE

The head of T-Mobile USA claims a merged T-Mobile and Sprint will be the best positioned to quickly deliver 5G wireless service to Americans, despite claims from industry insiders Legere’s claim is little more than vaporware.

“Only the new T-Mobile will have the network and spectrum capacity to quickly create a broad and deep 5G network in the first few years of the 5G innovation cycle, the years that will determine if American firms lead or follow in the 5G digital economy,” T-Mobile CEO John Legere claimed during the April 29th merger announcement.

But the 5G network Legere is referring to is little better than T-Mobile’s existing 4G LTE network, and won’t be capable of delivering gigabit speeds or an in-home broadband replacement.

Broadband expert Dave Burstein characterizes T-Mobile’s audacious 5G claims as part of a campaign to “bamboozle D.C.” to win merger approval.

It turns out T-Mobile is not talking about the same 5G technology under development at AT&T and Verizon, which both use millimeter wave networks and small cell antennas.

T-Mobile’s version of 5G is a already appearing elsewhere around the world — a new definition incremental upgrade for 4G LTE, “70-90 percent slower than the good stuff — millimeter wave,” claims Burstein.

“Folks building LTE-speed networks wanted to be called ‘5G’ and take advantage of the massive hype,” Burstein wrote. “So they made ‘New Definition 5G’ with a PR campaign and a minor software tweak, dubbed ‘NR’ for New Radio. 4G LTE networks [suddenly] became ‘5G.’ Every engineer in the business knows this is a scam.”

T-Mobile’s version of ‘5G’ is likely to appear on its spectrum in the 600 MHz range, easily deployed from existing cell towers and relatively cheap and easy to launch. It won’t deliver anything close to the speed or capacity improvements being claimed by Legere and a few others in the industry.

“Legere is swearing to Washington the T-Mobile 640 MHz 5G NR network will be many times faster than LTE,” Burstein said. “That isn’t true, of course. It’s far more likely to be only 25%-50% faster, or perhaps less. It may even be slower than the 500 MHz LTE/LAA T-Mobile already has in Manhattan.”

China claims to be ahead of the United States — another issue being pushed by T-Mobile merger supporters to “regain” America’s “lead” on 5G — by deploying its own version of 5G similar to the ‘new definition’ version of 5G Burstein talks about. The Trump Administration has even contemplated nationalizing America’s 5G network infrastructure to share benefits among all leading wireless carriers, if only to speed deployment and generate new demand for network equipment produced in the United States — not China.

But a closer look at China Mobile’s version of 5G finds the company installing approximately two million “mid-band” 5G cellular antennas that will work at 3.7 GHz. It isn’t the millimeter wave 5G technology contemplated by AT&T and Verizon, and won’t deliver much faster speeds than China Mobile’s existing 4G LTE infrastructure. Instead, it will help China Mobile better manage its bandwidth demand with a network at least twice as large as that of AT&T or Verizon.

Critics of ‘new definition 5G’ call the technology “evolutionary, not revolutionary.”

What makes millimeter wave 5G technology superior is the wide swath of dedicated spectrum typically available for wireless broadband. Some companies will have 400 to 800 MHz of frequencies available to support millimeter wave 5G, while the maximum spectrum for LTE is around 100 MHz. That extra millimeter wave spectrum has delivered up to 20 Gbps speeds in the lab, and Verizon is contemplating selling gigabit speed service to its fixed wireless customers using the technology sometime this year.

Despite Legere’s boastful claims, Burstein warns politicians and regulators they need to learn that T-Mobile’s type of “5G” is no longer “a big thing in most cases.” Even seasoned regulators like Jessica Rosenworcel and Ajit Pai at the FCC have incorrectly confused new definition 5G with millimeter wave 5G. Others, including Andrus Ansip at the EU and several Chinese leaders, have made similar mistakes as part of boastful claims about future network performance.

Burstein says it is a case of not listening to network engineers, who know the difference.

“They have engineers at the FCC,” Burstein said. “If they listen to the engineers, they will know the [merger] deal is not in the public interest.”

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