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.
Quality journalism is the lifeblood of democracy. There is no doubt that is true as the Founding Fathers believed that if they had to choose between a government without newspapers or newspapers without government they would choose the latter. An informed electorate is important. Communications too are important. Access to communications technologies like broadband, e-mail, SMS and cellular phones that allow us to quickly send/receive messages are crucial to all modern societies. Without a method to communicate to others it becomes harder for individuals to share information with each other. Even in the era of newspapers individuals had the ability to communicate their opinions to others in their community by writing a letter to the editor of their local paper. In a time before e-mail or the Internet such opinion letters had to be mailed to the newspaper’s station.
When an individual’s letter to the editor gets published in the newspaper everyone in a community with a copy of the paper could read the opinion pieces that were published. If someone read an opinion piece printed in the paper they could then reply to the piece and submit their reply for publication in the next issue of the newspaper. Of course individuals could even mail personal letters to one another. Private letters mailed from one individual to another can still be sent via U.S. Mail today but it was extremely crucial for communicating long distances before the telegraph, telephone, radio, or even the Internet were invented.
The U.S. Postal Service is still important today especially for people lacking broadband access who live in rural and remote areas to communicate messages with others. The mission of the U.S. Postal Service is to provide a universal mail service that no privatized mail carrier does which enables people in rural and remote areas to have mail service. Given the problems the U.S. Postal Service is having lately and the partisan attacks by Republicans in Congress against the Postal Service I intend to discuss what’s wrong with the Postal Service, possible reforms of the Postal Service that can allow it to still carry out its stated mission and save it from privatization in a future article. For now though I close with these words journalism is a public good that also needs defending.
Access to high-speed Internet services – also known as broadband – has become a basic public necessity like water or electricity. Yet despite its importance, broadband in America is far from universal. Part of the solution is improving digital literacy for all Americans so they can acquire the skills they need to connect to the Internet. However, that still leaves the competition issues I raised earlier unaddressed that will need addressing to bring down costs, provide consumers more choices and result in better service. It is my hope the competition issues will be addressed at some point in the near future by the FCC.
Now as for digital literacy as I have stated the FCC has proposed using some USF funds to foster greater broadband adoption through investment in digital literacy training. Broadband adoption is important as is broadband deployment and I am glad to see the FCC taking actions to help bridge the digital divide. It is my hope that the FCC’s rulings in broadband matters help the people that need it not cement the power of the monopoly phone and cable companies. The status quo on broadband is unacceptable.
The future of all media lies in the Internet. Think about that for a moment. This means all information, communication, commerce and entertainment is increasingly going online. Increasingly new technologies and telecommunications services like broadband will play a greater role in our economy. With employers looking for new workers increasingly advertising job openings on the Web job seekers will need both the skills to access the Internet and a broadband connection to apply for positions and remain competitive. That is why broadband competition and digital literacy are so important.
We need to decide whether like universal mail service or universal basic telephone service whether to make universal broadband a reality. That being said the decisions we make as a country will determine whether such service will remain a luxury marketed by monopoly cable and phone companies to the few who can afford their exorbitant prices and live in areas where they deploy access to broadband or like any public utility/telecommunications service be made universally available to all.
Part of the solution is improving digital literacy for all Americans so they have the skills they need to access the Internet. Already the National Telecommunications Information Administration in collaboration with the U.S. Department of Commerce has established the website digitalliteracy.gov and institutions of higher learning often conduct digital literacy workshops for their instructors so they can learn how to use new technologies in their classrooms. Digital literacy courses are often provided so students can also learn how to use new technologies.
Now as to whether the FCC has the constitutional authority to provide USF funds for digital literacy training I do believe they have authority and should use it. I encourage the FCC to vote in the affirmative on the proposal for advancing broadband availability through digital literacy training which the FCC is soliciting comments on at this time. In fact, I have provided the FCC my comments on existing digital literacy initiatives launched by educational institutions that have succeeded. Next post will cover the USF Transformation Order in more detail along with my thoughts on other FCC proposals affecting the future of the Internet.