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Deadline for Net Neutrality Comments Extended 2 Weeks; Industry: Many Comments Are “Fake”

Phillip Dampier August 14, 2017 Net Neutrality, Public Policy & Gov't 1 Comment

If you have not filed a reply comment with the Federal Communications Commission on the subject of Net Neutrality, you now have two extra weeks to send one.

At the request of consumer groups and some members of Congress, the FCC extended the deadline for reply comments — those in response to existing filings — until Aug. 30, 2017. The two-week extension is far less than the eight weeks requested by many, and was granted despite objections for any extension from the cable, wireless, and telephone company lobbying organizations.

While it is the policy of the Commission that ‘extensions shall not be routinely granted,’ we find that an extension of the reply comment deadline is appropriate in this case in order to allow interested parties to respond to the record,” the FCC wrote. “While we recognize that Movants have requested an eight-week extension of the reply comment deadline, we find, consistent with past Commission precedent granting partial extensions, that an additional two weeks is an appropriate period of time to extend the reply comment deadline in order to provide parties additional time to analyze the technical, legal, and policy arguments raised by initial commenters.”

Few in Washington expect the more than 11 million comments on the issue of keeping an open internet will make much difference to FCC Chairman Ajit Pai or his Republican colleague Michael O’Rielly, both fierce opponents of Net Neutrality. The third Republican Commissioner, Brendan Carr, was sworn in with returning Democrat Jessica Rosenworcel last Friday. Carr has a paper trail opposing Net Neutrality, while Rosenworcel is on record supporting it, along with her colleague Mignon Clyburn. In the end, the vote is likely to be 3-2 in favor of repealing Net Neutrality.

Unusually, the FCC has taken the step of characterizing the quality of comments received on the Net Neutrality issue, calling the vast majority of them exceptionally brief and containing little more than a declaration of the author’s “ultimate policy preferences.” It also suggested a large number of comments were “apparently fabricated,” noting that many were signed without the consent of the person named and others lack any names at all.

The telecom industry characterized the delay as giving more time for what Lawrence Spiwak, president of the telecom industry-friendly Phoenix Center calls “sophistic clicktivism” to “pad the record” in favor of Net Neutrality. Other groups funded by the telecom industry have spent months attempting to discredit the enormous number of comments — the most ever received by the FCC — by suggesting the majority were fake or fraudulent and not worthy of being taken seriously.

Verizon Tells FCC Revealing Big Telecom Merger Details Irrelevant to Net Neutrality Proceeding

Verizon has told the Federal Communications Commission it should reject a bid from a consumer group to release confidential corporate merger information to the public so it can learn what economic incentives, if any, exist to begin charging content providers extra fees for internet fast lanes and zero rating.

Incompas, which advocates for increased competition in the wireless industry, asked the Commission in July to publicly disclose details of recent telecom mergers obtained in confidence from the companies involved to “interested commenters” in the Net Neutrality proceeding allowing consumers can obtain valuable insight into the “economic incentives and abilities of incumbent broadband providers to curb competition, including through their control of residential broadband connections.”

The group specifically called out AT&T’s merger with DirecTV, Comcast’s failed merger with Time Warner Cable, and Charter’s merger with Time Warner Cable and Bright House Networks. All of the entities involved either operate wireless networks themselves or partner with a provider that does. Incompas believes a document release will show increased concentration and market power and the marked impact that can have on what consumers pay for service and how those companies plan to treat competing traffic.

The information disclosure sought by the group was vehemently opposed by Verizon, which doesn’t want its business secrets revealed to the public.

“There is no legal justification or sound policy basis to justify making this highly sensitive business information available in the Restoring Internet Freedom proceeding,” Verizon countered in its filing. The phone company does not want to publicly release details about its connection agreements with other companies or exactly how many customers it serves. “[N]othing has changed since the adoption of these protective orders that warrants the Commission weakening these protections by allowing this sensitive business information to be disclosed to potentially millions of ‘interested commenters’ in the Restoring Internet Freedom proceeding.”

While some Net Neutrality critics have sought to dismiss the more than 13 million comments received so far by the FCC on Net Neutrality as confused ranting, Verizon takes an opposite position saying the Commission is already bogged down with quality comments on Net Neutrality and does not need more, claiming it would only add to a flood of analysis on Net Neutrality. Verizon claimed among the submissions received by the FCC are “millions of comments, thousands of pages of expert testimony and declarations and hundreds of substantive analyses and submissions with detailed economic, legal and policy arguments.”

Charter Communications did not appreciate the proposal either, claiming it was unfair.

“Such an outcome would eviscerate the core protection of the commission’s protective orders, thereby unfairly punishing Charter’s past compliance and threatening the commission’s ability to obtain sensitive information from private parties in the future,” Charter officials wrote.

Republican FCC Nominee Forgot to Mention He Represented AT&T and Verizon

Phillip Dampier August 1, 2017 Net Neutrality, Public Policy & Gov't Comments Off on Republican FCC Nominee Forgot to Mention He Represented AT&T and Verizon

FCC Chairman Ajit Pai (left) with FCC general counsel and Republican FCC nominee Brendan Carr (right). (Image: Victor Hugo Mora Mendoza)

Federal Communications Commission Republican nominee Brendan Carr forgot to mention in sworn testimony before the U.S. Senate that his work at a D.C. law firm included representing AT&T, Verizon, and the wireless industry’s top lobbying trade association.

Carr, who today works as general counsel to the FCC under current chairman Ajit Pai, was nominated by Pai to serve as the third Republican FCC commissioner.

“Brendan’s expertise on wireless policy and public safety will be a tremendous asset to the Commission,” Pai said in a statement.

Mignon Clyburn is currently the sole Democratic Party commissioner, likely to be rejoined eventually by Democrat Jessica Rosenworcel if her re-nomination to the FCC is approved by the Senate.

At a confirmation hearing, Carr testified he “accepted a job at a law firm where [he] could gain broad experience working on various telecommunications issues” before taking a clerkship which “helped spark [his] interest in public service,” according to BroadbandBreakfast. What Carr did not mention is that work took place at D.C. powerhouse law firm Wiley Rein, where Carr represented the interests of AT&T, Verizon Communications (also a former client of Chairman Pai), and the industry-funded U.S. Telecom and CTIA trade associations which represent phone and wireless companies respectively.

The revelation isn’t expected to create a problem for Carr’s confirmation among Republicans, and Democrats don’t seem likely to create any obstacles for Carr either, perhaps because of a largess of campaign contributions from some of the same cable and phone companies that are likely to share Carr’s positions on issues expected to come before the Commission. Carr is widely expected to support Chairman Pai’s efforts to kill Net Neutrality policies at the FCC.

Senate Commerce Committee Ranking Member Bill Nelson (D-Fla) told BroadbandBreakfast the issue won’t cause any delay in his upcoming confirmation vote. Nelson’s third largest contributor over the last five years was Comcast, which contributed close to $70,000 last year to Nelson’s campaign with a panoply of Comcast lobbyists and their families also donating significant sums. Verizon was Nelson’s 16th largest contributor with more than $37,000 in donations to his campaign last year and many thousands more from Verizon’s lobbyists.

FCC Planning to Allow Sweeping Mergermania for Local TV Stations

Phillip Dampier July 26, 2017 Competition, Consumer News, Public Policy & Gov't 1 Comment

(Image: Free Press)

Along with a new TV season starting this fall, the Federal Communications Commission plans to launch a new season of sweeping deregulation in the broadcasting industry, allowing a handful of companies to acquire masses of local TV stations as a result of easing ownership limits.

Bloomberg News reports FCC Chairman Ajit Pai, with likely support from fellow Republican commissioner Mike O’Rielly, will unveil new rules that will allow TV station owners like Nexstar, Tegna, E.W. Scripps, and Meredith to acquire dozens of local stations, even in cities where they already own stations.

The new rules, likely to pass on a party line vote, would allow companies to own two of the four most-viewed stations in a market, in addition to several other lesser-rated outlets. Broadcasters are also heavily lobbying Republicans to insert another new rule that would lift the current ban on owning both the local daily newspaper and a TV station.

Broadcasters have been itching to launch a sweeping wave of station ownership consolidation to boost advertising revenue, cut costs, and gain more leverage over cable and satellite companies as they continue to raise fees charged for consent to carry those stations on pay television lineups.

The Obama Administration not only supported existing rules designed to protect local media diversity, it also strengthened them. The former administration believed that allowing local stations to consolidate was stripping some cities of competing local newscasts, reducing diversity of voices on local stations, and shifting local broadcasting further away from its public service obligations.

Public policy groups have criticized deregulation efforts for decades, particularly the 1996 Telecom Act, signed into law by President Bill Clinton. That legislation lifted ownership limits on radio stations, triggering a sweeping consolidation tsunami that allowed companies like iHeartMedia (formerly Clear Channel Communications) to build an empire of more than 1,200 stations nationwide (as many as eight stations in a single market) after a $30 billion spending blitz.

As a result of its heavy indebtedness, the company has struggled to pay back its $20 billion outstanding debt and has committed to multiple rounds of slashing expenses at its stations, resulting in dramatic cuts in local service and staff, and turning many of its stations into automated music jukeboxes with no local announcers or staff. Listener ratings declined as a result and on April 20, the company warned investors that it may not survive the next 10 months without bankruptcy reorganization protection. These groups worry consolidation will have a similar effect on free over-the-air TV’s sense of localism.

Ironically, Sinclair Broadcasting, now attempting to acquire the station portfolio owned by Tribune Media, will not be able to participate in the next wave of consolidation because it arguably has already broken another long-standing FCC rule prohibiting one company from owning over-the-air TV stations that reach more than 39% of the U.S. audience. That rule would not be changed as a consequence of the current deregulation proposals, but it would surprise no one to see Mr. Pai and Mr. O’Rielly attempt to repeal or modify it next year.

Pai and O’Rielly have been extremely critical of ownership restrictions in general. Pai has thus far advocated loosening local-TV limits, but O’Rielly has gone further calling for their complete repeal, arguing it “defies belief” that over-the-air stations have limits while they compete with “literally hundreds of competitive pay TV channels and essentially unlimited competitive internet content”

The Obama Administration argued the difference between over the air broadcasting and pay TV networks was primarily in their public service obligations. As a license holder, TV stations are required to provide service in the public interest in return for being granted a license to use the publicly owned airwaves. Since pay television networks do not use public property, they are not required to meet those obligations. Local stations, particularly those with local newsrooms, also have a long tradition of being critically important in times of public emergencies. Without an in-house staff, stations airing little or no local programming would be unlikely to continue that tradition.

Large TV owner conglomerates are already arranging financing for the impending station roundup. John Janedis, an analyst with Jeffries, told Bloomberg all of the larger TV station owners are eager for the relaxation of ownership rules so they can purchase their peers.

“The reality is everyone is talking to everybody,” Janedis said. “There are a lot of buyers out there.”

AT&T Using $9.7 Million in Public Dollars to Bolster its Cell Towers in South Carolina

AT&T will spend $9.7 million in annual public subsidies to bolster its cell tower network in South Carolina in part to expand its rural wireless broadband program. Perhaps services like mobile tower lease would come in handy.

The Federal Communications Commission approved the funding, which is expected to cost Americans nearly $10 million annually until 2020 to boost wireless coverage in 20 mostly rural counties in South Carolina to reach an estimated 12,000 new homes and businesses by the end of this year. Nationwide, the company is getting almost $428 million a year to extend access to 1.1 million customers in 18 states, the FCC says.

AT&T plans to spend the money to improve cell towers it already has in place for its mobile phone customers. The company admitted it will rely on existing infrastructure and won’t lay a single new strand of fiber optics. Instead, wireless broadband customers will share space with AT&T’s existing mobile customers on AT&T’s backhaul network.

“Because of the wireless aspect of it and the greater ability to deliver that last-mile connection, it does help to overcome any obstacles that may be in the cost equation,” Hayes said. “This initial build, with it being infrastructure that we have in place with these towers, that comes from years of investment.”

AT&T will also be able to promote its own products and offer customers discounts and free installation when they agree to sign up for other AT&T services. Hayes said the service will cost $60 a month for everyone else, along with a one-time installation fee of $99.

“Because of the wireless aspect of it and the greater ability to deliver that last-mile connection, it does help to overcome any obstacles that may be in the cost equation,” spokesman Daniel Hayes told The Post and Courier. “This initial build, with it being infrastructure that we have in place with these towers, that comes from years of investment.”

AT&T is treating the fixed wireless program, which offers up to 10Mbps service, as an alternative to wiring fiber optics in outer suburban and rural areas.

With taxpayer/ratepayer dollars financing a significant part of the cost, AT&T will have a de facto monopoly in its rural service areas where it has traditionally declined to offer or maintain DSL service or consider fiber optic upgrades, leaving these areas without broadband service until the subsidy program began.

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