Microsoft would be drawn further into the telecom/Internet regulatory world with its $8.5 billion acquisition of Skype, experts said. But they divided over the deal’s potential implications on VoIP treatment going forward. The deal, the largest in Microsoft’s history, is expected to get regulatory approvals. Meanwhile, Media Access Project urged Microsoft to support network neutrality and other open Internet policies.
The U.S. Court of Appeals for the D.C. Circuit rejected as premature Verizon and MetroPCS’s separate challenges of December’s FCC net neutrality rules, which were made before the order was published in the Federal Register. The decision was a win for the agency, which asked that the challenge be rejected, though future appeals remain likely. Verizon said in January that it would file an additional challenge after the order is published.
The U.S. Court of Appeals for the D.C. Circuit rejected as premature Verizon and MetroPCS’s separate challenges of December’s FCC net neutrality rules, which were made before the order was published in the Federal Register. The decision was a win for the agency, which asked that the challenge be rejected, though future appeals remain likely. Verizon said in January that it would file an additional challenge after the order is published.
The U.S. wants a month more to decide whether to appeal an indecency decision by the 2nd U.S. Circuit Court of Appeals in New York. The decision threw out a $1.2 million fine against ABC affiliates for briefly showing a woman’s buttocks on NYPD Blue (CD Jan 5 p2). U.S. Acting Solicitor General Neal Katyal sought an extension from April 4 to May 4 of the deadline for a cert petition to the Supreme Court. That’s according to Media Access Project Senior Vice President Andrew Schwartzman, who got a copy of Katyal’s request dated Friday and not made available in electronic format. Katyal’s earlier request for a month-long delay to April 21 to decide whether to appeal the 2nd Circuit’s decision in the Fox case, which also went against FCC indecency policy, was granted, said Schwartzman. He represented groups that backed broadcasters in ABC and Fox. Should the U.S. seek to appeal the 2nd Circuit’s ABC ruling, the high court could wait to act on the case until the justices decide whether to hear oral argument in Fox, Schwartzman said. The high court earlier heard the Fox case, which it decided in favor of the government, and sent the case back to the 2nd Circuit, which again sided with the broadcast network. Another scenario is that the high court considers the ABC and Fox cases together, said Schwartzman, who predicted the court will eventually consider Fox. In that case, the commission said isolated curse words on the network’s Billboard Music Awards show violated indecency rules.
AT&T executives may have to accept concessions on two key issues of continuing interest to the FCC to win approval for its proposed buy of T-Mobile: Data roaming and wireless net neutrality. AT&T last week started a series of meetings at the agency to discuss likely concessions, and it placed both issues on the table. Data roaming rules, poised for a vote at the April 7 FCC meeting, are already raising concerns with some House Republicans. While details are still emerging, AT&T executives appear open to accepting a data roaming requirement for 3G and 4G services to win approval for the merger, FCC officials said last week. AT&T executives also indicated some willingness to make additional concessions on wireless net neutrality, beyond the rules approved by a split commission in December. One condition contained in the Comcast-NBC Universal transaction that proved controversial is that it locks Comcast into having to follow net neutrality rules even if they're reversed in court. AT&T’s concessions here would have a similar effect. AT&T appears to be targeting the two FCC Republicans, Robert McDowell and Meredith Baker, and Chairman Julius Genachowski as the three votes needed for approval. The data concession may be relatively meaningless, since with the deal AT&T effectively takes T-Mobile, its only national competitor using GSM technology, out of the picture, an FCC official noted. Public Knowledge Legal Director Harold Feld said no concessions on AT&T’s part would make the proposed merger more palatable. “We are in the zone of [Herfindahl-Hirschman Index readings] where we are effectively collapsing the industry back to natural monopoly levels,” he said. “The ability to exercise market power along every aspect of the industry as a consequence of market share cannot be cured by a handful of conditions. Approving this with conditions would be like throwing Sprint overboard and solving the problem by tossing them a lifeline so they can keep dragging along in the wake.” The concessions would address some of the industry’s concerns with AT&T/T-Mobile, said Media Access Project Senior Vice President Andrew Schwartzman. “However, the details would matter a great deal,” he said. “Pricing, non-discrimination, etc., would matter a great deal. However, the biggest problem, by far, is that conditions usually expire after three years. … What do they do when the conditions expire?” “Given that the FCC is poised to act on data roaming at its April 7th meeting, a concession on data roaming won’t be meaningful to small carriers unless AT&T is willing to go significantly beyond the rules the FCC implements,” said a wireless carrier executive. But Free State Foundation President Randolph May said the commission shouldn’t use the merger as an excuse for making policy. “I'm afraid that before the merger review is finished at the commission -- likely to be some time in 2012 -- this will be another prime example of why the agency’s merger review process needs to be substantially reformed,” he said. “That we're already talking about what concessions AT&T may be willing to make, before any rigorous competition analysis has gotten underway, demonstrates the point. I'll be disappointed if, at the end of the day, AT&T makes concessions on net neutrality, data roaming, or other issues, that go beyond presently applicable legal requirements that are generally applicable on an industry-wide basis.” Meanwhile, House Republicans said the FCC is trying to overstep its authority again after doing so with net neutrality in the pending data roaming order. “I remain skeptical that the FCC has the statutory authority to mandate data roaming,” House Commerce Committee Chairman Fred Upton, R-Mich., said in an e-mail. “Sadly, as the FCC continues to ignore limits to its authority, it seems that the agency is determined to spend more time at the courts of appeal. I look forward to addressing this and other examples of the Commission’s recent ends-based decision making as part of a larger discussion on FCC process reform.” Rep. Marsha Blackburn, R-Tenn., urged the FCC to back off. A member of the House Commerce Committee, she’s “always hesitant to embrace the federal government’s aggressive intrusion into the marketplace,” her spokesman said. “The precedent that the FCC seeks to set here, that a private company should invest in a network, only to have the government intervene when they attempt to profit from that network, is not unlike net neutrality. In both cases federal intervention is a disincentive to innovation, investment, and job creation.” Rep. Mary Bono Mack, R-Calif., “continues to believe that the FCC is inserting itself into an argument where it lacks legal authority, much like the issue of net neutrality,” said aide Ken Johnson. Genachowski doesn’t support “a common-carrier mandate for data roaming,” he said in a letter to Upton that was released Friday. The March 17 letter responded to a letter last month in which Upton and other committee Republicans voiced concerns that the regulator was trying to “circumvent” the Communications Act by imposing common-carrier requirements on an information service. The draft order avoided that legal authority concern, Genachowski said. “To the contrary, the draft order under consideration eschews a common carriage approach and leaves mobile service providers free to negotiate and determine, on a customer-by-customer basis, the commercially reasonable terms of data roaming agreements. This is not common carriage.” The proposed rules would “incent potential roaming partners to come to the bargaining table to negotiate private commercial deals,” Genachowski wrote House Communications Subcommittee Ranking Member Anna Eshoo, D-Calif., and other lawmakers who support the proposed rules. “These rules also balance the need for commercial roaming agreements with the legitimate challenges posed by network congestion. Moreover, it ensures that the Commission is merely a backstop in the process, and that it is in the best interest of all parties to work out private deals without relying on the Commission.” Genachowski believes that “a data roaming rule is necessary to ensure vibrant competition in the mobile marketplace, to unleash billions of dollars of investment that is currently sidelined, to create thousands of new jobs and to meet the consumer demand for seamless nationwide coverage, be it for voice or data,” he said in letters to the Hill. Some providers have been slow or unwilling to negotiate 3G or 4G roaming agreements, and the FCC’s “basic bipartisan voice roaming rules will be in jeopardy” when the mobile world shifts to LTE, Genachowski said.
AT&T executives may have to accept concessions on two key issues of continuing interest to the FCC to win approval for its proposed buy of T-Mobile: Data roaming and wireless net neutrality. AT&T last week started a series of meetings at the agency to discuss likely concessions, and it placed both issues on the table. AT&T is also expected to have to sell off a big chunk of T-Mobile’s subscriber rolls (CD March 25 p1). Data roaming rules, poised for a vote at the April 7 FCC meeting, are already raising concerns with some House Republicans.
FCC Chairman Julius Genachowski plans to move forward on an ambitious agenda at the commission’s April 7 open meeting, he said Thursday, including a data roaming order that has strong support from many wireless carriers but is opposed by Verizon Wireless and AT&T. The agency will also take on pole attachment rules and increased regulation of wireless signal boosters, among other orders scheduled for a vote at the meeting.
The U.S. government wants another extension to decide whether to appeal to the Supreme Court a 2nd U.S. Court of Appeals indecency decision against the FCC. Acting Solicitor General Neal Katyal asked the high court for an additional 30 days, to April 21, to file a certiorari petition in the Fox case. That’s according to Senior Vice President Andrew Schwartzman of the Media Access Project, who saw a copy of the filing. Requests like this aren’t unusual, and they're “invariably granted,” he said. Katyal previously received a 30-day delay to March 22 regarding an appeal of the 2010 ruling against an FCC policy allowing an indecency finding based on a single, unscripted curse word on broadcast TV.
The FCC should auction the 700 MHz D block if legislation isn’t soon passed about what to do with that spectrum, said Commissioner Robert McDowell, who has long supported selling that spectrum. He said the commission also should act on its own to further the development of white spaces devices, if Congress doesn’t soon pass legislation allowing the agency to hold an incentive auction. Speaking at an event sponsored by Catholic University, McDowell touched on another issue where he’s long been active at the FCC: Getting unlicensed devices on the market that use the spaces between TV channels.
The departure of Free Press Executive Director Josh Silver is expected to have little effect on advocacy by the group, which at times has been highly critical of FCC Chairman Julius Genachowski, especially on net neutrality. Silver, a MoveOn.org veteran, is leaving to form a new group, the Democracy Fund, and will be replaced by Managing Director Craig Aaron. “I don’t think it makes much difference,” said an FCC official. “Free Press serves a constituency and it’s a constituency that will remain the same.” An official at another public interest group said Free Press’s Washington, D.C., office operated largely independently of its Massachusetts headquarters. “Josh was very good at providing overall vision and direction, keeping the faithful pumped, and bringing in money -- basically what you want from an executive director,” the source said. Senior Vice President Andrew Schwartzman of the Media Access Project said that, “in organizing a mass constituency on media policy issues, Josh has accomplished something that many others had tried, and failed, to do.” Commissioner Michael Copps said that “many of the causes” Free Press “champions are causes for which I also have fought. Due in no small part to the efforts of Josh and the dedicated staff at Free Press, the voices of millions of Americans that would otherwise have gone unheard have been heard here at the FCC and in the halls of Congress.” Silver, who has been at Free Press since it was founded in 2002, said his new group will aim for “reforming the media and reducing the influence of the K Street lobbying juggernaut.”