News reports indicate since federal regulators shot down Comcast’s bid to takeover Time Warner Cable Charter Communications has made a renewed attempt to buyout TWC. Charter is also seeking permission to buy Bright House Networks another cable company making New Charter the second biggest cable company y behind Comcast. This three way merger has its own risks for consumers and competition. Charter in an attempt to win favor with regulators is spinning itself as the anti Comcast and promising to not engage in any ISP discrimination for at least three years if the deals are approved. One acquisition may be plausible but acquiring both seems impractical and regulators should be skeptical of approving this three way merger as is. They should either allow one of the deals and block the other one with conditions, block both outright or even if they do consent to both only do so with stringent conditions attached.
Charter expects government review of the deals to conclude by winter and with approval to complete the merger by year end. It will be a waiting game to see what happens. Public comments are now being taken on this deal so anyone with concerns should make their voices heard now.
Microsoft’s Windows 8 Metro interface sure looks pretty with its tiled background but news that the operating system will require new APIs for applications that run in this new environment has at least some developers on edge. According to Microsoft applications in its new finger friendly operating system will have to be optimized for touch screen use to work within the Metro environment. A major part of Windows 8’s new look and feel and the software giant’s attempt to make it a viable tablet operating system are new full screen immersive applications. Windows 8 will include new APIs for developing these applications. Now having new APIs is not what’s spooking developers the issue is there have never been apps like this before on Windows so the old APIs won’t work. Windows developers have developed a lot of time, money and effort into the platform. Over the years they’ve learned Win32, COM, MFC, ATL, Visual Basic 6, .NET, WinForms, Silverlight and in Windows 7 WPF. All of these technologies at one time or another were needed to create desktop applications for Windows. With the exception of Visual Basic 6, all of them are still more or less supported on Windows today, and none of them can do it all; all except Visual Basic 6 and WinForms have a role to play in modern Windows development.
Frankly, whether or not Microsoft is investigated over Windows RT anti competitive behavior consumers in the mobile device business can vote with their wallets and have real choices. Remember, Microsoft has been a monopolist in the past and has attempted to use their monopoly position to illegally thwart competition. It’s one thing to want to outperform your competitor it’s another to want to kill it entirely. The good news for anyone but Microsoft is with the software giant facing real competition Windows 8 adoption remains flat. Few consumers are willing to upgrade their PCs to Windows 8 and to try and entice people the Redmond software giant is offering Windows 8 coupons to Windows 7 PC buyers to upgrade their computer for free. My biggest complaint with Microsoft has always been the Windows Tax that has to be paid even when buying a PC without Windows the good news is Microsoft can’t bully their way to dominance in the smartphone and tablet market.
AT&T Mobility since its T-Mobile merger was shot down is attempting smaller spectrum acquisition deals like the one they had with Qualcomm that was approved. Despite AT&T losing some AWS spectrum to T-Mobile as part of the breakup agreement they gained some licenses to 700 MHz airwaves from Qualcomm and now want more from 700 MHz LLC even if threatens any future hope of 4G LTE Interoperability (700 MHz Interoperability 12-69). To submit non-docketed comments/pleadings or confidential pleadings to the FCC regarding this application groups or individuals participating must have registered with the FCC to participate in Universal Licensing System proceedings. Once logged in a pleading for ULS File Number 0005262760 which is the file number associated with this application can be submitted. Petitions to Deny this application are due by July 25th, 2012 with Oppositions due August 6th, 2012 and Replies due August 13th, 2012. I have already participated in this proceeding myself submitting my concerns stating why the deal should either be conditionally approved or denied. As it is much smaller than AT&T T-Mobile merger and is purely a spectrum swap there are less competitive concerns than there were for that proposed merger but some concerns do exist that need addressing.
As noted above the transaction(s) at issue here could further derail or threaten any future hope for 4G LTE device carrier interoperability among carriers offering 4G LTE services and as such the FCC should carefully review and evaluate all the evidence submitted for or against the transaction(s) at issue here. The FCC as I will explain in an upcoming article should implement and enforce 700 MHz interoperability rules which will benefit smaller carriers and foster greater competition. This is because the Big 2 carriers AT&T and Verizon have benefited from a non interoperable wireless market even making devices on their own networks incompatible with each other’s network. So not only are devices on AT&T’s network incompatible with those pof smaller carriers including Sprint Nextel, T-Mobile USA, MetroPCS, Leap Wireless (Cricket), U.S. Cellular, C-Spire (Cellular South) etc but devices on AT&T’s network are also incompatible with those on Verizon’s network and vice versa.
According to the rumor mill Verizon’s proposed AWS spectrum swap with T-Mobile and their 700 MHz divestitures are appeasing the FCC into accepting the SpectrumCo swap but the DOJ is still worried about the JOE with the cable companies. Whether the FCC is intent on approving it its reported they won’t do so without DOJ support as well. This is good news for consumers and competition especially if reports are accurate that the DOJ might oppose these sweetheart deals.
Opposition to Verizon’s cable deals continue from public interest groups and consumers wanting to ensure sufficient broadband and mobile broadband competition continue despite the agency resale and joint operating entity agreements between these companies. Since a Comcast executive has admitted this is an integrated transaction both the DOJ and FCC should be examining both aspects in combination. The fact is as bad as both the license transfer and JOE are individually they are far worse together for consumers. The Consumers Federation of America has even spoken out that the JOE ends the 1996 Telecommunications Act’s competitive promise for consumers by turning competitors into partners so they can divy up the spoils of the Internet market by dividing the Internet amongst themselves. These deals must not be allowed to proceed at least not with the JOE. The license transfer must either be conditionally approved and the JOE denied or both rightly denied.
The Librarian of Congress must issue a ruling this year on whether the U.S. Copyright Office‘s existing DMCA exemptions for legally jail-breaking smartphones will be renewed and/or extended to cover tablets or not. I support the jail-breaking exemptions and am hopeful they will be renewed and extended. Another DMCA exemption to cover general purpose computer operating systems on desktop and laptop computers should be granted. After soliciting comments from individuals including myself on these matters the Copyright Office is now holding hearings where representatives of public interest groups like the Electronic Frontier Foundation are testifying in support of the exemptions and opponents able to testify are likely testifying in opposition.
It is my hope after all the testimony has been given that the Librarian of Congress will grant a renewal of the 2010 DMCA exemption for legally jail-breaking smart-phones and extend it to cover tablets in addition to supporting a DMCA exemption for legally jail-breaking general purpose computer operating systems for desktop and notebook computers. Meanwhile I and others supportive of device carrier interoperability continue to press the FCC to issue a ruling requiring interoperability in the 700 MHz bands. I strongly believe that the Federal Communications Commission should require device carrier interoperability for carriers using 700 MHz spectrum, issue AWS Service Rules and deny the Verizon SpectrumCo and Cox transactions due to the spectrum concentration that would occur and collusive nature of the joint operating entity agreements. Of course I’ve discussed some of these issues in prior posts and am merely stressing the importance of these issues again.
In 1984 AT&T in exchange for government permission to enter the computer equipment business agreed to a breakup of its subsidiaries into several Regional Baby Bells. The breakup was very beneficial for consumers and resulted in greater competition. Unfortunately, in the 2000s AT&T Corp., as it came to be known was allowed to re-merge with two of the original Baby Bells from the Ma Bell System: SBC Communications and later Bell South. Another Baby Bell MCI eventually become part of Verizon Communications which is a co-owner of Verizon Wireless.
What some people don’t know is in 1968 the FCC ruled that wire-line telephones had to be made compatible with any telephone company. The Carterfone decision as it was called paved the way for the innovation of the fax machine and allowed innovation in the phone equipment business that the AT&T monopoly otherwise sought to curtail. Today the wireless market for cellular phones and tablets looks a lot unfortunately like the phone equipment market pre Carterfone with wireless carriers allowed to dictate which handsets work with which carriers. It is imperative that this be resolved eventually for the benefit of the consumer.
Right now the Federal Communications Commission is accepting comments on a proceeding regarding interoperability rules for carriers with 700 MHz of wireless spectrum (12-69). They also have an open proceeding on Advanced Wireless Services (AWS) rules for holders of AWS spectrum (12-70). I would encourage anyone who has not had a chance to comment on these proposals to file comments as soon as possible in support of interoperability requirements for carriers using both 700 MHz and AWS spectrum. Furthermore, anyone wanting to contribute their opinion(s) on such rules are certainly welcome in doing so and public input is certainly a good thing. Otherwise the corporations against interoperability and any rules benefiting the public’s interest would be the only ones to speak out. We need to show their is support for pro consumer policies like these that also benefit smaller wireless companies and are thus pro competitive. AT&T Mobility and Verizon Wireless might not like these rules but the proposed rules benefit smaller companies and consumers a like.
I have already commented myself in these proceedings and mentioned having an open equipment market for cellular phones and tablets that can work with the carrier of the individual’s choice and would encourage others to do so as well. Please note that the FCC’s next Open Commission meeting is on Friday April 27th at which time they will vote on some proposed rules in proceedings related to standardized and enhanced disclosure pertaining to broadcaster’s public interest obligations (00-168) that while still open the commenting period for rules has passed, and on a few other proceedings related to USF contributions etc.
A few weeks back it was announced that T-Mobile USA which survived a takeover attempt from AT&T Mobility would layoff several call center workers. AT&T which has also laid off call center workers reacted saying their merger could have saved these jobs. Never mind the fact that many duplicative jobs would have been lost as a result of the merger in retail and engineering and that the takeover was anti-competitive as AT&T believes that it could have saved these jobs had the merger occurred.
AT&T is now publicly criticizing the FCC like a sore loser upset at the denial of their merger. Even though they got a nice consolation prize in the form of 700 MHz of unused wireless spectrum from Qualcomm that regulators allowed AT&T to acquire they want to resort to petty attacks against this agency. The fact is the U.S. Department of Justice and the Federal Communications Commission denied the merger because it was found to be anti-competitive and not in the public’s interest to have even fewer choices in the nationwide market for wireless service providers.
Their deceptive attempt to Monopolize Everything using their PR campaign “Mobilize Everything” rightly backfired on them and now they need to just move on. AT&T’s arrogance in assuming the merger was a done deal and suggesting to the public their opinion didn’t matter if they were opposed to the merger helped torpedo the takeover. From the start the “inevitable” merger of AT&T Mobility with T-Mobile USA was rightly under intense government scrutiny as it proposed making an already concentrated wireless market even less competitive. Fortunately, regulators were not willing to allow anymore consolidation on such a massive scale in the U.S. wireless market despite all of AT&T’s lobbying and advertising the merger was killed.