Verizon will play an active role as the FCC considers revised net neutrality rules, said Verizon CEO Lowell McAdam Monday during a call with analysts. McAdam was not asked about that topic but delved into it at the end of the call. FCC Chairman Tom Wheeler said last week the agency would revamp its net neutrality rules due to the Verizon v. FCC decision (CD Jan 16 p1). “Obviously we are pleased with the court’s decision,” McAdam said. “I think any clarity in this area that we get is a good thing and I think the court’s decision helped with that. I know you have all seen Chairman Wheeler announced a notice of proposed rulemaking. We will be obviously heavily involved in that as we go through that process and we think that will provide additional clarity. … Everything from healthcare to telematics to the energy grid need to be balanced with someone who is trying to watch last year’s episode of NCIS. So we are going to be encouraging a very light touch on the Internet to make sure that an investment in innovation continues.” The main focus of the call was Verizon’s wrapping up of its purchase of Vodafone’s 45 percent of Verizon Wireless. “Full ownership of our wireless asset is a major milestone for Verizon,” he said. “From a strategic perspective, it enhances our ability to deliver the integrated data and video services that will change the game for customers and create new growth opportunities for the future. Financially the benefits are straightforward. It is immediately accretive to earnings per share and provides access to all of the wireless cash flows. There is no integration risk because we manage and control this business completely today."

Correction: Mark MacCarthy is the Software & Information Industry Association vice president-public policy (CD Feb 21 p11).

Net neutrality could end up as big a distraction for FCC Chairman Tom Wheeler as Vietnam was for President Lyndon Johnson, American Enterprise Institute Visiting Fellow Richard Bennett warned in a blog post (http://bit.ly/1e0iJUh). Wheeler has written books about history and should be aware of the parallel, he said. Johnson inherited the war much like Wheeler inherited net neutrality, Bennett said. “He ramped up the troop levels, hit North Vietnam with all the weapons he had, and spiraled ever deeper into a quagmire,” Bennett said. “The Vietnam War is a good example of slipping small step by small step into a conflict from which there is no good outcome instead of decisively stepping away. The net neutrality controversy is taking on the same tone.”

Initial IP transition trial proposals were due Thursday, but as of Friday afternoon, the docket showed only one company that had filed a proposal. Iowa Network Services asked for authority to do a service-based experiment concerning the TDM-to-IP transition for “Centralized Equal Access” service (http://bit.ly/1h6Dpdg). The experiment would help speed technological advances in rural America while “preserving the positive attributes of network services that consumers have come to expect,” the network provider said. Its CEA network aggregates rural traffic, centralizing the provisioning of expensive features and functionalities while bring the “benefits of advanced communications services and competition to rural areas of Iowa,” it said. Iowa Network Services wants to “study the impact on customers and rural communities” as its voice service converts from a CEA network based on time-division multiplex circuit switching to one based on IP technologies, it said. AT&T, which was the first to ask the agency to do deregulatory trials, filed a one-page letter Thursday indicating its proposal would be coming in one week. “AT&T has been working diligently to address each of the criteria outlined in the Order as it prepares to submit its proposal for conducting service-based experiments in a small number of wire centers in its wireline footprint,” it said (http://bit.ly/1p34S3O). “AT&T expects to complete its documentation addressing each of the criteria shortly and it is our intention to file our proposal for your consideration on February 27.” In a statement Friday, Chairman Tom Wheeler put a positive spin on the one proposal that had been received. “Last month the Commission unanimously adopted an Order inviting service providers to propose voluntary experiments designed to assess how the transition to IP impacts network users and initiating targeted experiments. Now, it’s great to see that real experiments are being proposed -- and quickly,” Wheeler said (http://fcc.us/1p38aUK). “We are already beginning to receive expressions of interest from entities that wish to participate in our rural broadband targeted experiments."

Active bombs dot the Alaskan landscape, and removing those munitions could depend on the FCC figuring out what to do about Adak Eagle Enterprises and its subsidiary Windy City Cellular, the telcos told the FCC Wednesday (http://bit.ly/1ebtcrq). The companies’ interim per-line subsidy ended at the end of January, and they have heard nothing from the agency about “next steps” or “a further extension of interim relief,” they said. “AEE and WCC remain at an operational standstill, with deteriorating assets and a decimated workforce.” Adak Eagle and Windy City had asked for waivers of the FCC’s rule limiting per-month, per-line support to $250. The waiver requests weren’t granted (CD July 17 p14). Now the companies don’t know what to tell customers who ask whether their voice and broadband service will continue to be available, they said. This could have an explosive effect, the companies said: “Adak Island is saturated with active bombs dating back to World War II. As part of the three-year process to clean up these munitions, the next Explosive Ordnance Disposal Team will arrive on Adak Island in April. The EODT will need the broadband and voice services provided by AEE and WCC to support its bomb search, detonation, and removal work on the island,” the companies said. “Without a positive decision from the [Wireless and Wireline] Bureaus, however, the companies will not be able to continue providing these critical services to support the work of the EODT."

The FCC’s net neutrality proposal demonstrates that the FCC is acting with dispatch in reaction to the U.S. Court of Appeals for the D.C. Circuit’s Jan. 14 decision (CD Jan 15 p1) largely rejecting the agency’s 2010 net neutrality rules, FCC Chairman Tom Wheeler said during a press conference following the commission’s monthly meeting. “First of all, this is a month after the decision,” Wheeler said. “There’s going to be a rulemaking in the spring. I don’t think we kicked the can, I think we picked it up and we're running down the road in the direction the court suggested we ought to be going.” Wheeler was asked about his statement that he would leave the Title II docket open (CD Feb 20 p1). “There are all kinds of tools in the toolbox,” he said. “What we're doing is we're adding, not subtracting, to what’s in that toolbox.” The agency favors broadband competition, he said. “When Google comes in and says that they're going to build more fiber, that’s a great idea,” he said. Wheeler said the commission is looking at the “right structure” for encouraging the buildout of more municipal broadband. “The operating hypothesis is that if the citizens of a community say we would like to have more competition and we want to work through our local elected officials to have that competition they should be encouraged, not thwarted.” Wheeler also confirmed background statements coming from agency officials that he is “skeptical” about a possible Sprint/T-Mobile deal, but he declined to say more. “I think that has been reported in the press, that both the Department of Justice and we indicated that we were skeptical about the proposed transaction, and that’s the extent of my willingness to comment on that situation,” he said.

Tightening rules on joint sales agreements would “likely harm the public interest,” said FCC Commissioner Mike O'Rielly in a blog post Tuesday night (http://fcc.us/1cpYn5P). A plan by Chairman Tom Wheeler’s office to circulate proposed changes to the rules on JSAs would leave O'Rielly (CD Feb 12 p1) “perplexed and deeply concerned,” because the media market is far more competitive than when the commission’s ownership rules were created, said O'Rielly. “Such a move would conflict with the spirit, intent and wording” of the 1996 Telecom Act, he said. “Instead of tinkering around the edges in a questionable manner, the Commission should comply with the law and move forward to holistically update its media ownership rules across the board so that they are justified against the backdrop of today’s media landscape.” NAB meanwhile lobbied the FCC in favor of JSAs. (See separate report in this issue.)

All paper and electronic filings that were due at the FCC Feb. 13, were due Feb. 14, the FCC said in a public notice Wednesday (http://bit.ly/1h7nWsa). Feb. 13 doesn’t count in computing filing periods of fewer than seven days because it was an FCC holiday, due to adverse weather conditions.

The White House backs the FCC’s commitment to net neutrality but declined to say whether reclassification of broadband service was the best route forward, it said in a response to a petition on the issue (http://1.usa.gov/1cWA2S1). The response was authored by Gene Sperling, director of the National Economic Council and assistant to the president for economic policy, and Todd Park, U.S. chief technology officer. “The petition asked that the President direct the FCC to reclassify Internet service providers as ‘common carriers’ which, if upheld, would give the FCC a distinct set of regulatory tools to promote net neutrality,” they said. “The FCC is an independent agency. Chairman [Tom] Wheeler has publicly pledged to use the full authority granted by Congress to maintain a robust, free and open Internet -- a principle that this White House vigorously supports.”

The FCC should reject a proposal from wireless companies to allocate the primarily broadcaster-used 470-698 MHz range of UHF spectrum to mobile uses on “a co-primary basis with broadcasting,” said CBS, Disney, Fox, NAB, NBCUniversal, Univision and several network affiliate groups in comments filed Tuesday on draft recommendations of the 2015 World Radiocommunication Conference FCC Advisory Committee. The wireless proposal also suggests removing a requirement that incumbents on the frequency have to agree to deployment of new mobile services in the band. “If the FCC accepts the AT&T and Verizon proposal, the U.S. would become the only country in the world without spectrum dedicated to broadcast television as a primary use,” said NAB in a news release. “We are hopeful the FCC rejects this wireless industry proposal, which if approved could result in harmful radio transmission interference among neighboring countries, and seriously compromise the integrity of the U.S. television airwaves,” said an NAB spokesman. “That allowing high powered broadcast and mobile broadband operations in the same band creates the potential for harmful interference between services should be beyond dispute,” said NAB. Though it conceded that some broadcaster spectrum in the affected band may need to be reallocated to a mobile use, that shouldn’t happen without “additional sharing and compatibility studies,” NAB said. The wireless proposal “reflects a scientifically unsound approach that ignores current open proceedings intended to gather further information concerning required separation distances between broadcast television and wireless operations in a headlong rush by the wireless industry to mark the entire UHF band as its territory,” NAB said in the comments (http://bit.ly/Mawl42).