NCTA slammed a Public Knowledge official's call for Bell cooperation on regulating business data services, including cable. NCTA cited a blog post by PK Senior Vice President Harold Feld that said AT&T should negotiate with Verizon -- which has collaborated with Incompas -- and that suggested cable could dominate the BDS market if the FCC constrains only ILECs. "This theory is wrong in so many different ways, that it requires some unpacking," said NCTA Vice President Steve Morris in a blog post Wednesday called "Let Some Fresh Air Inside the FCC's Smoke-Filled Tent." He wrote, "It's jaw-droppingly hard to conceive that an advocate who has consistently complained about the 'ILEC monopoly' ... would suggest that the biggest ILEC should join the second biggest ILEC in negotiating a regulatory regime that raises obstacles to emerging competitors. If you are concerned about market power and in favor of competition, why would you ever support regulation that constrains emerging competitors -- particularly competitors investing in fiber networks that are tremendously expensive to build and that everyone agrees are vital to the future of the nation? Does Feld support FCC action to constrain the new small business services just announced by Google Fiber or is it just cable that should be limited?" Despite extensive FCC data collection, "none of that data even hints at" emerging competitors exercising market power, Morris wrote. He said it's absurd to believe that limiting ILEC rates without limiting cable rates "will somehow enable cable to dominate the market," when cable has only a 10 percent market share. Feld's "suggestion that AT&T ‘come into the tent and negotiate’ illustrates just how broken this process has become -- encouraging a ‘wheel and deal’ mentality more apt for the selling of used cars," Morris said. Feld disagreed. "NCTA wants to negotiate a new STB [set-top box] standard for their ‘get rid of the box’ alternative. How is that not also a ‘smoke filled room?’ To paraphrase Captain Renault from Casablanca: NCTA is shocked, SHOCKED to find there are ex parte meetings going on here," he emailed. "Does NCTA really need a lecture on how the ex parte process in a permit but disclose proceeding works? Verizon and Incompas will continue to talk to each other and submit their proposals through the very public process -- just like NCTA will, presumably, someday, possibly, submit some further details on what 'get rid of the box' actually means and how it would work. Then other folks -- like NCTA in the case of BDS, or PK in the case of STBs -- get to meet with the staff and respond. Look, if NCTA wants to propose getting rid of 'permit but disclose proceedings' and do this just on comments and replies with no meetings for anyone, cool. But NCTA should stop playing the offended hypocrite.”
The FCC set the comment dates on a Further NPRM updating network outage reporting rules. The FCC approved the NPRM in May with Commissioners Ajit Pai and Mike O’Rielly expressing concerns (see 1605250061). Comments are due Aug. 26, replies Sept. 12, said a notice in Tuesday's Federal Register.
Comcast produced the second-to-worst level of customer satisfaction this year across many industries, while Amazon tied for second best, in the 2016 Temkin Web Experience Ratings report. Temkin Group, a customer experience research firm, reports annually on how satisfied consumers are with large organizations across many industries. Comcast TV service scored 29 percent, which is 9 points below the TV service industry average, and Comcast internet scored 30 percent, 8 points below the ISP average, Temkin said. Charter and Cox also landed in the bottom 10, scoring 35 percent apiece. Cablevision, Dish Network and Bright House Networks tied for best among TV providers at 46 percent. AOL took the highest ISP rating at 51 percent, followed by AT&T (45 percent), Cablevision (44 percent) and Verizon (43 percent). On the top end of the ratings, Amazon scored 75 percent, handily outperforming the retail industry average by 19 points. Its Kindle business beat the computer industry average by the same amount, scoring 73 percent overall.
FCC rules requiring undersea cable licensee outage reporting were released Tuesday in the text of the order the commission adopted 3-2 June 24 (see 1606240040). The requirements take effect six months after Office of Management and Budget approval of the rules, "to provide ample time for implementation," the order said.
County officials will investigate a two-hour 911 outage in Montgomery County, Maryland, the county said in a news release Monday. From 11:10 p.m. Sunday to 1:09 a.m. the next morning, callers received a busy signal. During the outage, fire and rescue units responded to two medical emergency calls involving fatalities -- a 91-year-old woman from Olney and a 40-year-old man from Twinbrook, the county said. The outage also affected dispatch console radios, but staff quickly switched to backup radios, it said. The county said it notified the public through public safety social media and the county emergency alert system. The outage occurred at the Alternate Emergency Communications Center in Rockville, which was activated three-and-a-half weeks ago while the county made hardware changes at the main center in Gaithersburg. County Executive Ike Leggett said he wants "a thorough evaluation of the systems that support 911 to make sure that the systems have the stability to withstand whatever power surges or blips that could cascade into even a partial system outage. County residents must be able to count on a prompt response to emergencies.” The county said it already ruled out an external power loss or failure of backup generators: “It is believed that it initially occurred due to an internal equipment failure of a cooling (air conditioning) system in the IT room of the AECC which then shut down the 911 system to prevent overheating.”
A proposed rule that would extend requirements for diversity in procurement to all FCC regulatees doesn't present a constitutional question, Multicultural Media, Telecom and Internet Council Senior Adviser David Honig said in a letter to the agency responding to Chairman Tom Wheeler's testimony on Capitol Hill Tuesday. Wheeler told legislators the MMTC proposal to apply pay-TV procurement rules to all FCC regulated entities could raise a constitutional question of strict scrutiny. “Until your testimony today, no one has ever suggested that the Rule presents any constitutional question,” Honig wrote. “Supporters and opponents of affirmative action agree that if a regulation merely required stations to implement racially neutral recruiting and hiring programs, the equal protection guarantee would not be implicated,” said Honig. “This is settled law.” MMTC wants to have the procurement extension included in the FCC upcoming media ownership order, which already has been voted by the Democratic FCC commissioners, as was announced Tuesday (see 1607120078).
Public Knowledge hopes the FCC will address consumer-protection concerns about a tech transition item slated for a vote Thursday (see 1607080043). In meetings with consumer advocates, FCC staff "seemed receptive" to the concerns -- about consumer notification, education, affordability and broadband access -- but it's unclear what the commission will do in the final order, said Dallas Harris, a PK technology counsel, on a news-media call Tuesday. Senior Vice President Harold Feld said FCC Chairman Tom Wheeler might be reluctant to make changes if they would thwart a 5-0 vote, though he didn't know if that would be the case. PK supports the telecom industry's efforts to upgrade infrastructure, but Harris said the FCC should ensure it's an upgrade for all consumers and not a downgrade for some. PK proposed a "checklist" to ensure replacement services are at least as good as legacy services, she said, and the FCC appears likely to adopt several of the group's recommendations. A 2015 NPRM suggested eight general criteria for judging telecom service discontinuance standards: (1) network capacity and reliability; (2) service quality; (3) device and service interoperability; (4) service for individuals with disabilities; (5) Public service answering point and 911 service; (6) cybersecurity; (7) service functionality; and (8) coverage. Harris said she isn't aware of any major FCC departures from that list, but ILECs last fall objected to several of the items (see 1510270058). More recently, AT&T proposed a certification path to streamlined review (see 1606010046), and Verizon said cybersecurity certification shouldn't be required for such treatment (see 1606300058). Harris said the FCC's possible 15-day comment period for fast-track reviews is insufficient. While PK welcomed an apparent commission desire to require carriers to conduct consumer outreach and education, the group is concerned it not occur only in English, she said. Harris also said ensuring affordability and broadband access should be FCC priorities. Also on Public Knowledge's call, a commission order on 5G was discussed (see 1607120074).
The FCC didn't base recent regulatory efforts on economic reasoning and should be reined in by Congress, said a report Monday that called the commission "an agency in search of a mission" in the digital age. “We must get back to the practice of basing regulations on thorough analysis rather than populist rhetoric,” said a statement from Mike Montgomery, executive director of CALinnovates, which funded the report. CALinnovates describes itself as a coalition of tech leaders, startups and entrepreneurs that seeks to be a bridge from the tech community to California and federal policymakers; its partners include AT&T. Previous FCCs made "wise" decisions informed by economic principles that deregulated long-distance phone services, enabled enhanced internet data services and spurred wireless growth, said the report by Gerard Faulhaber, a professor emeritus at the University of Pennsylvania Wharton School and law school, and Hal Singer, a senior fellow at George Washington University School of Public Policy. "The failure of the FCC to ground its regulations in economic reasoning in the last few years, however, has led to inefficient policies and proposals that threaten to eviscerate prior benefits," said their report. "The FCC has made no effort to subject its pending privacy or set-top-box proposals to cost-benefits analysis." They said the net neutrality order highlighted "the quagmire facing policymakers" as a federal appeals court deferred to the agency's policy expertise. "Given the FCC’s willingness to eschew econometric evidence and economic theory as it considers new regulations, the most direct way to re-inject economics into FCC policymaking is via a Congressional mandate for the agency to perform cost-benefit analysis, subject to OIRA [White House Office of Information and Regulatory Affairs] or judicial review," the report said. "There is no reason why the Department of Labor, the Environmental Protection Agency, the Consumer Financial Protection Bureau, and a host of other agencies should be required to perform cost-benefit analysis, while the FCC is free to embrace populism as its guiding principle." The FCC didn't comment. The commission's recent business data service proposal did include a detailed market study by consultant Marc Rysman, a Boston University econometrician, which also was subjected to peer reviews that were recently released.
Correction: Nine tables of FCC regression results -- modifying regressions from consultant Marc Rysman's business data service study -- had suffered from a recent coding error and were corrected Friday in a Wireline Bureau document (see 1607080052).
Building flexibility into the rules is key as the FCC considers the transition from the text telephone (TTY) technology to real-time text (RTT), CTA said in comments in docket 16-145 on an April 28 NPRM (see 1604280055). The agency “should avoid adopting overbroad regulations that could limit the development of assistive technologies like RTT or inadvertently extend requirements to products that are not intended for voice communications,” CTA said. “The Commission should modify its proposal so that manufacturers have the flexibility to bring the most innovative and effective communications solutions to users who are deaf or have hearing or speech impairments.” NCTA said the FCC should move forward on RTT rules for wireless networks, but defer addressing wireline. “Wireline voice networks and devices have a rapidly declining user base, they generally are not designed to support text-based communications and, except for TTY services, are not used to provide text-based communications,” NCTA said. “Operational challenges of implementing RTT on VoIP systems are potentially significant.” The FCC proposal “poses significant jurisdictional questions” for the California Public Utilities Commission, said CPUC staff in a memo to be considered at the state commission’s Thursday meeting. The staff urged the CPUC to comment on the FCC NPRM. “Because the existing TTY program is analog-based, it falls squarely within the CPUC’s jurisdiction over services that are not IP based or that are purely intrastate,” the CPUC staff said. But the CPUC lacks authority over IP services, except when required or expressly delegated by federal law, it said. “If the FCC determines that RTT is a purely interstate service, the CPUC would be barred from regulating it because the FCC has exclusive jurisdiction over interstate telecommunications services.” If barred from regulating RTT, the CPUC’s Deaf and Disabled Telecommunications Program (DDTP) relay service “likely would have to be terminated at some point in the future,” it said. Also, RTT should be interoperable with analog-based TTY, the CPUC staff said. “Because the DDTP’s relay service is analog-based, and its equipment is imperfectly compatible with IP-based service, existing users of the DDTP’s TTY equipment will be significantly degraded in the event of an abrupt shift to real-time text technology.” The staff objected to a sunset date for TTYs because it said the number of existing TTY customers participating in the DDTP is declining. Instead, the compatibility requirement should remain as long the analog phone system is in place, it said. Comments are due July 11 -- before the CPUC meeting -- but the CPUC can file replies by July 25.