Broadband & Neutrality Regulation

SAN JOSE, Nov. 7 – This morning I’ve posted two articles on BroadbandCensus.com about the Wireless Communications Association’s conference here.

Net Neutrality Advocates: Wireless Carriers’ Network Management Must be ‘Reasonable’

SAN JOSE, November 7 – Emboldened by their summertime victory against Comcast, advocates of network neutrality said Thursday that the next front in battle for the principle would be against wireless carriers who make “unreasonable” network management decisions. read more

FCC Chairman Kevin Martin’s Incredible Silicon Valley Wi-Fi Adventure

SAN JOSE, November 6 – It was Kevin Martin’s day to suck up praise from Silicon Valley. The chairman of the Federal Communications Commission – for about two more months – came to the Wireless Communications Association’s annual conference here on Thursday to be feted by many Googlers, including company co-founder Larry Page. read more

With the Federal Communications Commission’s decision to allow “white spaces” devices at its open meeting on Election Day, it may make sense to ask: how are other nations approaching the issue of “white spaces”? Do other countries that make use of flexible and transferable spectrum licensing find that taking the approach that the FCC took on Tuesday — allowing unlicensed wireless devices to share vacant television frequencies — helps or hinders in getting more spectrum available for the “highest and best use”?

As readers of this blog are probably aware, I work part-time at the Information Economy Project at George Mason University School of Law, which sits at the intersection of academic research and telecommunications policy.

IEP is pleased to sponsor one of its “Big Ideas About Information” Lecture next Wednesday, November 12, at the law school in Arlington. The school is conveniently located at the Virginia Square/GMU Metro station, and is a short ride away from downtown Washington.

At 4 p.m. on November 12, William Webb, the head of research and development and the senior technologist at OFCOM, the British telecommunications regulator, will be speaking about this and other subjects. The title of his remarks is: “The Theory, Practice, Politics and Problems of Spectrum Reform: A U.K. Regulator’s Perspective,” and you can learn more about it here, or by clicking on the badge below.

Admission is free, but seating is limited. To reserve your spot, please email me, Drew Clark, at this address: iep.gmu@gmail.com

I’ve just posted two new entries over at BroadbandCensus.com (in addtion to the one about FCC v. Fox Televisions Stations) below. Now, I’ve got to go and vote.

The pieces at BroadbandCensus.com include a blog post about the real issue in white spaces: not broadcasters versus techies, but keeping the current Swiss-cheese arrangement in the airwaves versus clearing the broadcasters out of their radio frequencies entirely.

Also, in a special election day news report, myself and Drew Bennett have written about the delay in the vote over the universal service fund and intercarrier compensation overhauls.

The Federal Communications Commission began a broad inquiry of intercarrier compensation in 2001 and now it may finally be getting around to acting on it on Nov. 4 while everyone’s thoughts are on something else.

This is about 12 years overdue. Congress in 1996 foresaw that implicit phone subsidies were unsustainable and ordered the FCC to replace them with a competitively-neutral subsidy mechanism. Due to political pressure, regulators have failed to complete the job.

Intercarrier compensation refers to “access charges” for long-distance calls and “reciprocal compensation” for local calls. A long-distance carrier may be forced to pay a local carrier more than 30 cents per minute to deliver a long-distance call, but local carriers receive as little as .0007 cents per minute to deliver calls they receive from other local carriers.

Once upon a time, before fiber optics, there were significant distance related costs. Now distance isn’t a major factor.

The high access charges remain only because the recipients, typically small and mid-size phone companies serving sparsely populated areas, have successfully lobbied regulators and legislators to keep them.

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WASHINGTON, October 30 – At the National Press Club, Larry Irving and Grover Norquist are debating technology and the presidential candidates. Check out the side of the page on DrewClark.com, or at http://twitter.com/drewclark, for my live Twitters!

The Progress & Freedom Foundation has just launched the new Center for Internet Freedom.  CIF offers an alternative to the proliferation of advocacy groups calling for government intervention online by offering timely analyses and critiques of proposals that diminish the vital role of free markets, free speech and property rights.  We aim to drive the Internet policy debate in new directions by emphasizing a layered approach of technological innovation, user education, user self-help, industry self-regulation, and the enforcement of existing laws consistent with the First Amendment.  Such an approach is a less restrictive—and generally more effective—alternative to increased regulation.  

Here are some of the issues I’ll be working on as CIF’s Director in conjunction with my esteemed colleagues Adam Thierer, Adam Marcus, and adjunct fellows: 

  • Defending online advertising as the lifeblood of online content & services, especially in the “Long Tail”;
  • Emphasizing market solutions to problems of privacy protection, especially regarding the use of cookies and packet inspection data;
  • Protecting online speech and expression both in the U.S. and abroad;
  • Defending Section 230 immunity for Internet intermediaries;
  • Opposing online taxation and legal barriers to e-commerce and digital payments, especially at the state and local levels; and
  • Ensuring that Internet governance remains transparent and accountable without hampering the evolution of the Internet.

William Webb, Head of Research and Development at OFCOM, to speak about ‘The Theory, Practice, Politics and Problems of Spectrum Reform’ on November 12

ARLINGTON, VA., October 23 – With the transition to digital television in the United States less than four months away, disputes about the airwaves used by broadcasters are raging here and around the globe.  A world-class expert will soon weigh in on how one country, the United Kingdom, views the challenges of bringing radio spectrum allocation into the 21st Century.

On Wednesday, November 12, 2008, the Information Economy Project at the George Mason University School of Law will host its next Big Ideas About Information Lecture, featuring an address by Dr. William Webb, a top policy maker at OFCOM, the U.K. telecommunications regulator.

OFCOM’s ambitious liberalization strategy, announced in 2004, permits the large majority of valuable frequencies to be used freely by competitive licensees, offering an exciting and informative experiment in public policy.  Dr. Webb’s lecture, “The Theory, Practice, Politics and Problems of Spectrum Reform,” will offer a timely progress report for the American audience.

Webb’s lecture will be the sixth in a prestigious series that has included Nobel Laureate Vernon Smith and noted economist David Porter on how FCC license auctions have worked; Martin Cooper, the “father of the cellphone,” on spectrum allocation; Brian Lamb, founder and CEO of C-SPAN, on the policies that enabled the cable network to launch;  former Federal Communications Commission Chairman Dennis Patrick, on the decision to abolish the “Fairness Doctrine” in 1987; and University of Minnesota Professor Andrew Odlyzko, on financial bubbles in high-technology industries.

Dr. Webb’s Lecture will review the century-long history of radio spectrum regulation. For almost all of that century, the policy-maker has micro-managed spectrum use, defining services, technologies and business models deployed by wireless operators. The inefficiencies embedded in this approach have triggered calls for liberalization since the pioneering work of economist Ronald Coase in the 1950s.

While efforts to relax administrative control have generally met great political resistance, some substantial progress has been made with the emergence of mobile telephone networks over the past two decades.  Policy makers in some nations are now seeking to achieve bolder changes. The regulator in the United Kingdom, OFCOM, has emerged as a leader in this campaign.

After the Labour Government commissioned a landmark 2002 study authored by economist Martin Cave, OFCOM moved aggressively to assist the emergence of property rights in frequencies, the institutional switch enabling market allocation of radio spectrum.

This lecture, delivered by a key OFCOM policy official and a noted spectrum technology expert in his own right, dissects the liberalization process in Great Britain and offers lessons learned. This experience promises great insight for the U.S. and other countries struggling to enact pro-consumer policy reforms.

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Over at DrewClark.com, earlier today I reported today that television networks – which in recent years have had a strained relationship with local broadcasters on a variety of fronts – joined with the National Association of Broadcasters in calling for a time out on the politically simmering issue of “white spaces.” Here’s the start of the story, and you can read the full post at DrewClark.com

WASHINGTON, October 23 – The top executives of the four major broadcast networks on Thursday urged the head of the Federal Communications Commission to delay a vote on a politically simmering issue that pits broadcasters against Google and high-tech executives.

In the letter, the CEOs of CBS Corp., NBC Universal and Walt Disney, and the chief operating officer of News Corp., urge that the FCC exercise caution before taking irreparable action with regard to the vacant television channels known as “white spaces.”

Google and the other technology executives, including Microsoft, Motorola, Philips and others, want the FCC to authorize electronic devices that capable of transmitting internet signals over vacant television bands.

The network executives – CBS’s Leslie Moonves, Disney’s Robert Iger, NBC’s Jeffrey Zucker and Peter Chernin of News Corp. – want a time out.

They join their local broadcasting colleagues, as well as manufacturers and users of wireless microphones, like the National Football League and Boadway theater owners, who have been actively lobbying the issue.

[…]

Read the rest of the story at my blog, DrewClark.com – The Politics of Telecom, Media and Technology

Readers of Tech Liberation Front may be interested in a new breakfast series that BroadbandCensus.com has recently begun.

The next event in this series, “Should Government Funding Be Part of a National Broadband Plan?” will be held on Tuesday, November 18, from 8 a.m. to 10 a.m., and will include Stan Fendley, the director of legislative and regulatory policy for Corning, Inc., Kyle McSlarrow, CEO of the National Cable and Telecommunications Association (NCTA), and John Windhausen, Jr., president of Telepoly Consulting. I will moderate the discussion.

Two weeks after Election Day, this Broadband Breakfast Club meeting will consider one of the hottest topics in telecom: can and should funding for broadband work its way into a pending fiscal stimulus package?

Future meetings of the breakfast club (December 2008 through March 2009) will consider the role of broadband applications in harnessing demand, how the universal service fund will be changed by high-speed internet, the role of wireless in universal broadband, and the extent of competition in the marketplace.

The Broadband Breakfast Club meets monthly at the Old Ebbitt Grill, at 675 15th Street, NW, in Washington. (It’s right across the street from the Department of the Treasury.)

Beginning at 8 a.m., an American plus Continental breakfast is available downstairs in the Cabinet Room. This is followed by a discussion about the question at hand, which ends at 10 a.m. Except for holidays (like Veteran’s Day), we’ll meet on the second Tuesday of each month, until March 2009. The registration page for the event is http://broadbandbreakfast.eventbrite.com.

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Major speed enhancements are rumored to be coming soon from Comcast, which has been spending serious cash to upgrade its network to the DOCSIS 3.0 standard. Customers in many markets who now pay $42.95 a month for 6mbps/1mbps service will be upgraded to 12/2 — a doubling of both upstream and downstream speeds — with no corresponding price increase. This follows Comcast’s pattern of enhancing speeds without hiking prices. And the price point of the standard tier has remained unchanged in nominal terms for several years, so when you factor in inflation, it’s fair to say Comcast has actually been dropping prices.

It’s amazing to consider how broadband speeds have evolved in a relatively short period of time. Comcast’s highest tier was a mere 4mbps/384kbps just four years ago, when DSL speeds typically topped out at 3/768. For consumers who live in a competitive ISP market, DSL now offers 20/1, Fiber offers 30/5, and Cable will soon offer 22/5. All of these tiers are priced under $100 per month.

Though we may not be amidst a “price war” among ISPs per se, as Mike Masnick recently argued, there is simply no denying that price per megabit is declining rapidly. This is all thanks to competition, of course, which has pushed providers to invest in newer technologies that allow for faster broadband connectivity.

Market skeptics will assuredly respond to my optimism by pointing out that so long as Comcast sticks with its 250GB monthly usage cap, consumers are really just getting the same service with shinier packaging. Yet that fact hardly means we should scoff at Comcast’s new performance tiers.

As I’ve discussed on several occasions, I churn through a lot of file transfers each month, so I’m all for Comcast raising its cap (or, alternatively, implementing reasonable overage fees). But even with Comcast’s fairly generous limits, who isn’t ecstatic about being able to download any file in half as much time as before? Caps will surely evolve over time as demand for 1080p content delivered over the Internet grows, but for now, speed is a bigger concern than usage for most consumers.