While pricing is generally driving down MVPD subscriber numbers, Charter Communications has room to boost subscribership largely by taking market share from direct broadcast satellite, CEO Tom Rutledge said in an analyst call Tuesday. He said MVPD subscriber losses trend won't change anytime soon, but it also isn't accelerating. Charter said in a news release the number of residential video customers dropped by 100,000 in Q1, largely due to churn from legacy Time Warner Cable customers, ending the quarter with 16.7 million customers. During the quarter, it said it added 428,000 residential internet customers, putting its subscriber base at 21.8 million, and 37,000 residential voice customers, giving it 10.4 million. Wells Fargo analyst Marci Ryvicker wrote investors that the subscriber numbers from churn off of lower-value products are apparently hiding customers shifting to higher-end packages. She said despite Charter assertions that streaming bundles shouldn't pose a competitive threat, "we'll believe it when we see it." MoffettNathanson analyst Craig Moffett wrote that the subscriber numbers confirm that cord-cutting is accelerating across MVPDs. Rutledge said Charter has now launched new pricing and service packages across all its legacy TWC and Bright House Networks territories -- with Charter having bought the two in 2016 -- except for Hawaii, with the pricing and packages launching there soon. He said minimum broadband speeds are 60 Mbps or 100 Mbps across Charter's footprint, depending on the market, and that Charter is about to restart its all-digital conversion across TWC and BHN markets that aren't all digital yet, with the work to last through early 2019. Rutledge said Charter is testing "5G-like services" on various spectrum bands in a variety of different markets. Asked about Charter not pursing 600 MHz incentive auction spectrum, unlike Comcast, Rutledge said Charter's mobile virtual network operator agreement with Verizon is sufficient for a planned wireless offering launch in 2018, and Charter doesn't see any need now for that spectrum, though "opportunities will be available to get it." Pointing to Charter integrating Netflix into its user interface, Rutledge said the company is in similar talks with YouTube.
Bargaining between AT&T and it wireless workers continued Monday after the employees’ contract ended, said the company and Communications Workers of America. “Two sides are at the table today continuing to negotiate,” an AT&T spokesman emailed Monday. Friday, about 21,000 AT&T wireless workers in 36 states sent their employer a 72-hour notice to end their contract extension (see 1704280048). The workers authorized a strike in February, but it’s up to union leaders to call one. Carissa Moore, an AT&T call center worker from Bothell, Washington, said a strike option is still on the table. “AT&T wireless workers like me support continued bargaining with the expectation that AT&T comes to the table with serious proposals, but we can’t wait forever,” she said. “If we decide it’s necessary to protect good jobs, we will strike.”
Acting FTC Chairman Maureen Ohlhausen repeated her position that she wants congressional action repealing the common-carrier exemption so the FTC can regulate broadband privacy but declined to comment on specific legislation that would restore even partial authority. Responding to a question whether she would support HR-1754 introduced in March by House Digital Commerce and Consumer Protection Subcommittee Chairman Bob Latta, R-Ohio (see 1704270006), Ohlhausen, who gave a keynote speech Monday at a Capitol Hill discussion, said she's generally aware of the bill, but hasn't reviewed it in detail. "What I would like to see is the FTC be given its ability back on a firmer ground," she said. Last week, Sen. Richard Blumenthal, D-Conn., also introduced legislation that would give the FTC authority to enforce privacy and data security rules for ISPs. In August, the 9th U.S. Circuit Court of Appeals, siding with AT&T Mobility, ruled that the common-carrier exemption is status-based and therefore bars any FTC oversight over common carriers even if they're engaged in non-common carrier activity (see 1608290032). The FTC is seeking an en banc review of the 9th Circuit ruling. In response to a question about the FTC's next step if the hearing request is denied, Ohlhausen said: "It's a very core issue. If the 9th Circuit decision is upheld, I certainly think we'd want to see if there's anything else we can do, whether to appeal to the Supreme Court on that. But it's kind of a to-be-determined decision." She added the ruling has "ramifications far outside privacy and data security and telecommunications." Ohlhausen's talk at the University of Pennsylvania Law School-sponsored event focused on FCC reclassification of broadband as a common carrier service, removing FTC authority over such providers, similar to previous speeches (see 1704270006 and 1704190057). Earlier Monday, an appeals court upheld FCC net neutrality rules (see 1705010038).
The feedback from the independent and diverse media NPRM was clear that such programming "must be preserved," which could help drive the FCC to adopt an order dealing with the issue, Commissioner Mignon Clyburn said in a speech Thursday at the Media Solutions Summit, according to a transcript. She said the Media Bureau is reviewing the record. Some have said they see the agency under Chairman Ajit Pai as less likely to take on media regulatory issues like the indie programming item (see 1703170017). Clyburn also said she supports the Expanding Broadcasting Ownership Opportunities Act introduced recently by Rep. G.K. Butterfield, D-N.C. (see 1704050014). She said the FCC Advisory Committee on Diversity and Digital Empowerment announced by Pai (see 1704240058) could be "an invaluable venue" for generating recommendations of policies aimed at boosting participation of women and minorities in communications.
The Robocall Strike Force updated the FCC on industry efforts to address unwanted robocalls, a focus of the agency under then-Chairman Tom Wheeler and current Chairman Ajit Pai. The new FCC focus is on illegal, spoofed robocalls (see 1703230035), subject of a March NPRM and notice of inquiry. “Significant progress has been made over the past six months,” the report said. “This is not the end of the industry effort to develop ways to stop unwanted and illegal calls. The industry is committed to continuing to develop mitigation tools and techniques until these illegal harassing calls are stopped.” Lots of focus has been on authentication through what the industry is calling signature-based handling of asserted information using tokens, or SHAKEN, the report said, saying the approach has broad support. “The SHAKEN framework provides a mechanism for managing the deployment of Secure Telephone Identity (STI) technologies with the purpose of providing cryptographic authentication and verification of telephone numbers associated with calls traversing" IP-voice networks, the report said. “This specification defines the framework for telephone service providers to create signatures in Session Initiation Protocol (SIP) and validate those signatures at the call termination.” The report said industry consensus is there's no “silver bullet” to end unwanted robocalls. “To mitigate the problem of illegal robocalls, the industry is implementing a diverse multitude of evolving mitigation tools and efforts so that it becomes too costly for illegal robocalling campaigns to overcome the industry’s dynamic mitigation techniques,” the strike force said. “Illegal robocalls not only ruin dinner but they defraud consumers,” Pai said in a statement. “The Strike Force has made significant headway in helping consumers combat illegal robocalls and malicious spoofing. I’m pleased that industry remains committed to carry this work forward. As demonstrated by our recent robocall blocking proposals, we at the FCC are here to help with this work and do whatever we can to combat such calls.” CTIA said the group "and the wireless industry have been working hard and making significant progress in combatting illegal robocalls, while developing tools to give consumers greater control over the calls they receive." The task force “is making progress but most consumers still don’t have access to effective call blocking protection,” said Maureen Mahoney, policy analyst for Consumers Union. “The phone companies should keep working to improve call blocking tools and make sure that all of their customers, including those who rely on traditional landlines, get the protection they deserve. Call-blocking should be a standard feature offered to all phone customers and not a safeguard that consumers have to pay extra to get.”
NAB’s petition for reconsideration of the FCC repacking plan is deficient procedurally and on the merits, rehashes old arguments, and would lead to unnecessary delay, said T-Mobile, the Competitive Carriers Association and CTIA in opposition filings posted in docket 16-306 Thursday (see 1703170055). “The relief NAB seeks is not warranted on the merits and, if granted, will frustrate broadband investment and deployment,” said T-Mobile. All three entities attacked NAB’s assertion the FCC didn’t devote enough effort to creating the post-incentive auction transition plan. The broadcast association “can hardly claim that the FCC’s final rulemaking -- the result of which is the product of numerous years of advocacy by a variety of stakeholders -- can reasonably be deemed an ‘afterthought,’ and this assertion should be promptly rejected,” CCA said. Calling the repacking an afterthought “belies the thousands of pages of evidence on the record that Media Bureau carefully analyzed before releasing multiple detailed documents outlining the repacking process,” T-Mobile said. NAB’s claim wireless carriers aren’t truly interested in 600 MHz spectrum “is squarely contradicted by the fact that the auction generated the second most revenue ever for any Commission-held auction,” CTIA said. The wireless entities also condemned the petition as invalid for being late, “more than 900 days past the deadline for reconsideration,” T-Mobile said. NAB’s requested changes to the repacking plan are “based on arguments that either generally overstate the effect on broadcaster relocation or would unnecessarily delay the transition,” CTIA said. The broadcast association “already has tried, and failed, to challenge the Commission’s final rulemaking before both the FCC and the court,” CCA said. “NAB’s petition is an impermissible collateral attack on the 39-month repacking timeline disguised as a petition for reconsideration of the Media Bureau’s Post-Incentive Auction Transition Scheduling Plan,” T-Mobile said.
Free Press accused FCC Chairman Ajit Pai of "defaming" the group in announcing his open internet plans Wednesday to reverse Communications Act Title II broadband authority, but it vowed not to be intimidated and said millions of people will oppose his plans. "Pai recycled some out-of-context quotes to red-bait one of our co-founders and dismiss our decade-plus efforts to safeguard the open internet," said Free Press CEO Craig Aaron in a statement Friday to "clear up the record." In his speech (see 1704260054), Pai said the co-founder of the "spectacularly misnamed" Free Press "takes his inspiration from Venezuela" and acknowledged in 2007 that "the ultimate goal is to get rid of" phone and cable "media capitalists" so government could take over the internet. Aaron said that Pai doesn't want to debate net neutrality facts but "would have you believe we're secretly being guided by some offhand comments to an obscure Canadian socialist academic website by Robert McChesney," who co-founded Free Press but "isn’t involved in our day-to-day decisions or operations" as an emeritus board member. "Pai was also worked up about an Op-Ed McChesney co-wrote about U.S. coverage of the Venezuelan media a decade ago," wrote Aaron, denying Free Press or its staff had any role in either article. "It’s no coincidence that Pai highlighted these snippets. They’ve been circulating on right-wing conspiracy websites since at least 2010. These same quotes pop up every time Net Neutrality is back in the news. ... And now they show up in Pai’s speech. It shouldn’t be such a surprise. This is the Trump-administration playbook." Aaron said Free Press is "not so easily intimidated. We know we’ve got the facts on our side -- and the people, too." The FCC didn't comment.
Verizon said it didn’t bid in the TV incentive auction because the carrier just doesn't need more low-band spectrum. Changes in the industry mean the 600 MHz band just wasn’t that important to Verizon’s future, the company said in a Friday blog post. “The next big technological innovations are coming in 5G to serve the future needs of business, education, government and consumers,” Verizon said in its most complete comments yet on the recently concluded auction. “Enhanced fixed and mobile broadband, low-latency services and massive IoT scale will thrive on mid-band and millimeter wave spectrum, which is where we are focused for growth. This means more connected services and devices, and higher broadband capacity that can benefit our entire society.” Verizon said it already has “sufficient spectrum holdings below 1 GHz.” The carrier went big in the 2008 700 MHz auction, buying the entire C-band in the Lower 48 states, plus licenses in the A and B-bands. Verizon also cited problems with the TV spectrum. “Future use of 600 MHz spectrum -- only good in the U.S. and not globally -- will take some time to figure out and deploy widely, especially in busy urban locations,” Verizon said. The carrier mentioned T-Mobile, not by name. "One competitor spent $8 billion for 600 MHz spectrum to finally acquire a national low-band spectrum position," Verizon said. "They need it, desperately. And while they continue to play catch up in 4G, we’ve had the largest national LTE Advanced footprint on 700 MHz spectrum for seven years, and it keeps getting better." T-Mobile didn't comment Friday on the auction results. "We are investing in the future," Verizon said. "We have access to 28 GHz and 39 GHz spectrum that we will use for 5G. And the fiber we acquired through our XO and Corning transactions are enhancing our current networks with a keen eye toward future needs." Comcast meanwhile has no current plans for the $1.7 billion in spectrum it bought in the auction (see 1704130056), and that spectrum won't be cleared by the FCC and available for use for several years anyway, the company said in a statement Thursday, after the auction's quiet period ended. It said the spectrum isn't necessary for the rollout and growth of its Xfinity Mobile service. It called the spectrum "a strategically compelling investment at historically low prices." AT&T also commented Friday. "The auction was a win for the FCC, the economy, consumers and the wireless industry," a spokesman said. "Spectrum is essential for our business and we believe we’re taking the right steps. Our strategy for spending was driven by a variety of factors that evolved over time."
MPAA's Chris Dodd, who has led the film association since 2011, is leaving; ex-diplomat Charles Rivkin will succeed him, the group said Friday evening. Dodd, who before joining the association was a Democratic senator from Connecticut, is leaving as CEO Sept. 4 and at year's end as chairman, said a news release. It said the board was to meet Saturday to name as his successor Rivkin, assistant secretary of state for economic and business affairs under the administration of then-President Barack Obama. Rivkin would start Sept. 5 and the two men would "work together to complete the transition by the beginning of next year," MPAA said. Before the State Department, Rivkin "spent nearly twenty years in the creative sector" as CEO of Jim Henson Co. and W!ldBrain, it said. Kevin Tsujihara, CEO of MPAA member Warner Bros., cited Rivkin's entertainment and government background. Rivkin said he's "excited to work with the member studios to continue to expand the global market for entertainment content, while ensuring creators’ rights are respected around the world.”
The FTC is making it easier for consumers to report identity theft crimes by eliminating the need to file police reports in most cases, wrote Seena Gressin, attorney with the agency's Division of Consumer & Business Education, in a Thursday blog post. When a consumer reports a crime through IdentityTheft.gov, the site will produce a personal recovery plan, pre-file letters to banks, retailers and others and create an official statement about the crime. "In most cases, you can use your Identity Theft Report in place of a police report to clear your account and credit records of transactions that resulted from the identity theft" because the FTC is a law enforcement agency, wrote Gressin. By streamlining the reporting process, she said victims can start recovering from the crime more quickly while freeing up local police to do other duties. But consumers should still report some ID theft crimes to the police if they know who the thief is or can provide information to help with the investigation, if their names were used by thieves during police encounters, or if a creditor, debt collector or others want a police report.