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New York Times Blasts Verizon Data Roaming Lawsuit: Their Argument is Weak

Phillip Dampier May 30, 2011 Consumer News, Data Caps, Public Policy & Gov't, Verizon, Wireless Broadband Comments Off on New York Times Blasts Verizon Data Roaming Lawsuit: Their Argument is Weak

The New York Times today published an editorial blasting Verizon’s lawsuit against the Federal Communications Commission for requiring the wireless carrier to offer data roaming on commercially reasonable terms:

With text messages, e-mail and other forms of data overtaking voice as the main form of wireless communication, the rule issued in April will preserve competition in a vital communications network.

There are more than 100 wireless providers around the country, mostly tiny carriers with a network limited to a small area. They depend on roaming agreements to stitch together a bigger footprint, which is essential to compete successfully. If Verizon were to prevail — AT&T has, so far, not joined the lawsuit but has criticized the rule — the two dominant players could refuse to deal.

In fact, there is evidence Verizon and AT&T have spent years foot-dragging their way to roaming agreements for data, an increasingly vital service for the handful of independent cellular service providers, almost all operating with limited local service areas.  Although roaming agreements cover voice phone calls, such agreements for data roaming have traditionally been much rarer.  When the FCC threatened to regulate, the pressure was on and both AT&T and Verizon quickly reached agreements with many carriers, some of whom complained about outrageous roaming prices up to $1 per megabyte.

The Times argues that with wireless marketplace concentration accelerating with the impending merger of T-Mobile and AT&T, fair data roaming rules are essential.

 

Verizon FiOS Promises Tampa Bay Customer 25/25Mbps Speed, Delivers 25/2Mbps Service

Phillip Dampier May 25, 2011 Broadband Speed, Consumer News, Verizon, Video 5 Comments

[flv width=”360″ height=”290″]http://www.phillipdampier.com/video/WFTS Tampa The Need for Speed How to test your internet speed 5-19-11.mp4[/flv]

WFTS-TV in Tampa launched a consumer investigation when a local customer noticed the Verizon FiOS Internet service he was paying for — 25/25Mbps — was actually only providing him with 2.88Mbps upload speeds.  Even worse, both providers in the Tampa Bay area — Bright House Communications and Verizon, say actual speeds are not guaranteed, leading at least one customer to file an official complaint with the Federal Communications Commission for false advertising and misrepresentation by Verizon Communications.  WFTS examines whether providers have to actually deliver the speeds they promise, or does the fine print get them off the hook, leaving you paying more than you should for Internet speeds you are not getting.  (3 minutes)

AT&T Lobbying Blitz: Company Spent $6.8 Million in 1st Quarter Pushing T-Mobile Merger

AT&T, one of the country’s most profligate spenders on public policy lobbying, has pulled out all the stops pushing for Washington approval of its proposed merger with T-Mobile.

Bloomberg Government reports AT&T spent $6.8 million during the first quarter of 2011, more than 11 times more than its rival Sprint, which opposes the merger deal.  In fact, AT&T was the nation’s second biggest spender in lobbying dollars, just behind defense contractor Honeywell, which is trying to avoid Pentagon spending cuts.

Sprint’s much smaller lobbying effort had to make do with a budget of just $583,000 during the same period to push back against the telecom giant.

Also raising questions are reports from Bloomberg that AT&T CEO Randall Stephenson direct dialed Federal Communications Commission Chairman Julius Genachowski the weekend before the deal went public.  At the same time, former FCC Chairman Richard Wiley, today a lobbyist for T-Mobile, spoke directly with four of the five FCC Commissioners to directly lobby for the merger’s approval.

Sprint has been trying to beef up its own lobbying star power, recently adding Eddie Fritz, former head of the National Association of Broadcasters as one of their lobbyists.  Sprint has also hired several former high-level Congressional staffers and mid-level employees at the Justice Department, expected to help Team Sprint know how to apply the right pressure to the right people inside the FCC and Justice Department to reject the deal.  The merger hinges on the approval of both agencies.

Left off the speed dial — consumers, who cannot pick up the phone and reach FCC Chairman Genachowski while lounging in his backyard or enjoy lucrative employment opportunities open to government workers in the private lobbying sector.

[flv width=”360″ height=”290″]http://www.phillipdampier.com/video/Bloomberg ATT Lobbying 5-24-11.mp4[/flv]

Bloomberg News breaks down AT&T’s lobbying and strategy for getting its merger deal with T-Mobile approved in Washington.  (2 minutes)

America Falls in Broadband Rankings: Now in 12th Place for Wired Broadband, Providers in Denial

America’s broadband ranking has fallen once again, mostly at the expense of other countries who have accelerated service and speed upgrades above and beyond what is available in the United States.  That is the conclusion one can reach after reviewing the Federal Communications Commission’s second annual broadband report, delivered to Congress to fulfill obligations under the Broadband Data Improvement Act.

Through a combination of data from OECD broadband rankings and actual speed test results collected by the Commission, the FCC report notes American cities are at risk of losing the broadband speed race.

“This report compares data on average actual download speeds reported by a sample of consumers in a number of U.S. and foreign cities and finds that some large European and Asian cities exhibit a significant edge over comparable U.S. cities in reported download speeds, though reported speeds for some other international cities are roughly comparable to speeds in many U.S. cities,” the report concludes.

“The best currently available data set comparing the United States to other countries appears to be from the OECD, which collects data on various broadband deployment, adoption, and usage metrics and publishes rankings of its member countries. The OECD’s deployment data ranks countries based on particular technologies, rather than overall coverage. The U.S. ranking in these surveys ranges from 27th out of 30 in DSL coverage to 1st out of 28 in cable modem coverage.  The U.S. ranks 6th out of 16 in fiber-to-the-home (FTTH) coverage and 8th out of 29 in 3G mobile wireless coverage.”

Broadband Rankings (click to enlarge)

Most of the countries accelerating far beyond the United States in broadband speed and quality are in Asia and Europe, and many are upgrading their networks to fiber-based broadband.  As these fiber networks come online, the United States can be expected to fall further behind.

The cable industry lobby attacked the report's findings.

Just like last year, the Internet Service Providers turning in poor grades are rejecting the report’s conclusions.

“While the Commission’s headline proclaims that 20 million Americans are denied access to broadband, by that measure private investment has fueled the build-out of broadband networks to nearly 300 million consumers and is responsible for the jobs that flow from that investment,” said Michael Powell, president and chief executive of the National Cable and Telecommunications Association.  Powell used to oversee the FCC as chairman during the first term of the Bush Administration.

Another trade association with ties to the telecom industry, USTelecom, attacked the findings noting most Americans think their existing broadband service is good enough.

Walter McCormick Jr., USTelecom CEO, noted the FCC’s own report found that 95 percent of Americans have access to fixed broadband and 93 percent are happy with their service.

...so did USTelecom, another industry funded group

But McCormick says nothing about the speeds those customers receive, a bone of contention with the Commission.  As part of this year’s report, the FCC is increasingly relying on its own verifiable data about broadband speeds, collected through its SamKnows broadband speed test project.  The Commission has repeatedly noted that broadband speeds marketed by ISPs do not always match the actual speeds customers receive.

Speed tests comparing broadband performance in comparably sized cities found some sizable differences.

The data suggest that mean actual download speeds in some European and Asian cities are substantially higher than in comparably sized U.S. cities (e.g., 24.8 megabits per second (Mbps) in Paris and 35.8 Mbps in Seoul versus 6.9 Mbps in San Francisco, 9.4 Mbps in Chicago, and 9.9 Mbps in Phoenix). Some of the U.S. cities in our sample have higher speeds than some foreign cities (e.g., Chicago with 9.39 Mbps versus Rome with 5.6 Mbps).

The most significant reason for the disparity in speed is the technology used in each respective area.  Fiber to the home service traditionally delivers the fastest broadband speeds.  Cable broadband technology, common in the United States but less so abroad, is responsible for a great deal of speed increases in the United States.  Telephone company DSL and wireless are responsible for some of the slowest speeds, with rural DSL service commonly providing just 1-3Mbps service.  Many European cities still relying on DSL technology have upgraded to bonded DSL, ADSL2+, or VDSL service, which can significantly boost speeds.

Unfortunately, the report concludes, the faster the broadband service delivered, the higher the price — often out of proportion with other OECD countries.

Results […] suggest that U.S. stand-alone residential broadband prices are generally “in the middle of prices in OECD countries,” after accounting for speed, terms of service, data caps, and service delivery technology. Similarly, prices in the United States for business stand-alone broadband services were fourteenth out of 30 among the OECD countries. A paper by the Berkman Center for Internet and Society at Harvard University found prices for U.S. broadband with download speeds of around 768 kbps to be “very good” by international standards. However, as download speeds increase, the paper found that U.S. prices become more expensive than most other OECD countries.

Some providers unimpressed by the independent research accused the FCC of using biased and inconsistent research methods.  AT&T, for example, was unhappy with comparisons among U.S. cities and those of comparable size abroad.  They accused the Commission of not using “a well-defined or consistent methodology for choosing the ‘communities’ or offers.”  In fact, several providers suggested the Commission’s pricing comparisons ignored significant, albeit temporary, discounts some new customers receive, as well as discounts for bundled service packages.  Promotional pricing factors are acknowledged by the Commission, but the report notes the findings do attempt to collect real world pricing paid by actual customers.

For consumers in the United States, broadband envy is as close as the next news report highlighting broadband expansion efforts abroad.  Some countries are deploying 1Gbps broadband networks that deliver consistently faster speeds than American providers, at dramatically lower prices and without a usage cap attached.

National Media Calling Out FCC Commissioner’s Departure to Become Top Comcast Lobbyist

Phillip Dampier May 11, 2011 Comcast/Xfinity, Public Policy & Gov't 1 Comment

Meredith Attwell-Baker sure is.

The exit of Meredith Attwell Baker from her role as a Republican commissioner on the Federal Communications Commission to take a position as a top lobbyist at Comcast is raising eyebrows in Washington and anger in the rest of the country.

Comcast confirmed late today Baker will serve as their new senior vice president of government affairs, a title that can be considerably shortened to “lobbyist.”

The short span between March, when Baker was browbeating regulators over “taking too long” to review the Comcast-NBC merger she supported, and today’s announcement has surprised even some Washington insiders.

Often, those looking for a better paycheck in the private sector will start by working for a D.C. lobbying firm before directly accepting employment with a company whose multi-billion dollar merger deal they affirmed months earlier in their role as a regulator.

Tim Karr at Free Press called today’s announcement more food for the cynics:

With behavior like this it’s little wonder that American people are so nauseated by business as usual in Washington. Inside the Beltway the complete capture of government by industry barely raises any eyebrows. Outside of Washington, people of every political stripe have expressed near unanimous contempt for a system of government that favors powerful corporations at the expense of the many.

An opinion piece in the Los Angeles Times noted Baker’s move raises uncomfortable questions about how legislators and regulators make their decisions. “Are they acting in their constituents’ best interests, or are they burnishing their prospects for a high-paying job on K Street after they leave government?”

The New York Times expanded on Baker’s strong sentiment for the merger:

“The NBC/Comcast merger took too long, in my view,” Ms. Baker said on March 2 in a speech to a communications industry group. Noting that that time was similar to the length of other major merger reviews at the commission, she asked whether those reviews were preventing companies from trying to grow through acquisition.

“My concern is that you might walk away,” she told the communications executives, “and how many other consumer-enhancing and job-creating deals are not getting done today.”

Politico reported that Comcast’s gain was probably a loss for consumers:

“Sometimes the revolving door between government and private industry spins quickly and sometimes it’s on a rocket sled,” Dave Levinthal, communication’s director for the Center for Responsive Politics, told POLITICO. “This transition is as quick as it can possibly get.”

While Baker is not allowed to be an official lobbyist, Levinthal noted that she has many ways to be influential and lobby for her new company in a broader sense.

“It’s a big boon for Comcast,” he said. “They are getting somebody who has unbelievable government experience and know-how” in the communications space. Consumers, he noted, can’t afford to hire someone of a similar stature to advocate for them.

Comcast denied it approached Baker for a job until after their merger deal was approved.  That defense only strengthens suspicions Baker’s vote made her an even more attractive candidate for the cable company, but most pundits guess she would have supported Comcast even without a job offer. Judging from the comment sections of most major media stories covering today’s events, consumers are unhappy. Some called Baker an opportunist, while others used the occasion to bash Republicans for their reflexive support of big cable and phone companies paying off with jobs at the companies they strongly supported while in government positions.

Considering a few former Democratic commissioners have also made a living working for the interests of big cable and phone companies, calling today’s events an exclusively Republican travesty would be wrong.

Baker will report to Kyle McSlarrow, who recently left the National Cable and Telecommunications Association, the cable industry’s top lobbying group, for his own new career at Comcast.

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