Matt Daneman

Though Comcast plans to launch its own video streaming service in the first half of 2020 (see 1901140030), it anticipates licensing content to other over-the-top players, depending on what prices it can command, executives said in a Q4 call. CEO Brian Roberts said Comcast's streaming aim is to better monetize online viewership by offering its content online "with a very light ad load." He said it should be scalable, taking it quickly to breakeven. Comcast said as it rolls out the offering internationally in some countries, it will launch subscription VOD only, without advertising, or employ other strategies. Consolidated revenue for the quarter, including Sky, was $27.9 billion, up 26 percent year over year. It's increasing the 2019 dividend by 10 percent to 84 cents a share. The operator ended 2018 with 25.1 million residential broadband customers, up from 23.9 million; 21 million residential video customers, down from 21.3 million; and 10.2 million voice customers, down from 10.3 million. Comcast closed on its Sky takeover in October (see 1810090028). Roberts said Comcast rolled out 1 GB to nearly all 58 million homes and businesses in its footprint in 2018. Many won't need those speeds, a panel heard later Wednesday (see 1901230053).

As wireless providers plan to roll out their 5G networks, cable ISPs are aiming to do similarly with 10-gigabit networks or 10G. Monday at CES, the cable industry said the first deployments could come as soon as late 2021. Participants include Charter Communications, Comcast and Cox Communications.

Don't expect any AT&T/Time Warner-scale mergers and acquisitions in entertainment and media this year, experts told us. The federal government partial shutdown isn't having a chilling effect on deals, but that could change the longer it lasts, they said. "Two weeks may not be the end of the world for a lot of transactions; two months could be," said wireline and wireless lawyer Laura Phillips of Drinker Biddle.

Challenging DOJ on multiple fronts, the three-judge U.S. Court of Appeals for the D.C. Circuit panel hearing oral argument Thursday on the antitrust challenge to AT&T buying Time Warner showed skepticism. "You have to put in some evidence beyond just an economic theory," Judge Judith Rogers said. A former DOJ antitrust trial lawyer told us that since the decision likely will affirm U.S. District Judge Richard Leon's June decision allowing the merger (see 1806120060), it could come within a month or two.

The FCC's proposed communications market report is drumming up criticisms and fans. The agency on Wednesday also released a draft of appendices that includes data used in developing the report and some broadband speed data from years past. In a docket 18-231 posting Wednesday, New America's Open Technology Institute recapped a meeting with staffers in Commissioner Jessica Rosenworcel's office at which it said until the report fixes methodological flaws and flawed assumptions about competition, commissioners shouldn't adopt it. OTI said Form 477 data "is fundamentally insufficient" for measuring broadband marketplace competition as it overstates the availability of broadband service. The group said the report contains "misguided and vague assumptions" about broadband competition, such as its assertion markets with two providers are competitive. The American Cable Association called the draft "thorough and comprehensive," recommending tweaks including addition of emphasis the cable franchise rulemaking should result in more investment in broadband and other services provided over cable networks. ACA pushed for addition of language making clear vertically integrated MVPDs have incentive and ability to raise costs on rivals like small cable systems, and existing rules can't fix such behavior. Comcast said the report should add Census Bureau and Centers for Disease Control and Prevention data about prevalence of U.S. households relying on smartphones or mobile devices for internet access and of wireless-only phone service. CTIA, recapping meetings with aides to Chairman Ajit Pai and Mike O'Rielly, lauded the report. The draft on the Dec. 12 agenda consolidates a variety of reports into one to fulfill Ray Baum's Act mandate (see 1811210032). In a public notice Wednesday about the report appendices, the agency said the broadband deployment data in the appendices reflect updated data received and processed after the release of the draft report, and that updated data will be used in preparing the final version. According to the broadband data, 94 percent of the U.S. has access to fixed 25 Mbps/3 Mbps speeds, 99.8 percent to mobile LTE 5 Mbps/1 Mbps speeds and 89 percent to mobile LTE 10 Mbps/3 Mbps speeds.

From harsher criminal penalties for some streaming piracy to more engagement with U.S. trade partners, media groups, tech companies and others had suggestions for the Office of the U.S. Intellectual Property Enforcement Coordinator in docket 2018-19863 as IPEC puts together its next three-year joint strategic plan. Google said IPEC should seek feedback from rights holders on hurdles to suing rogue sites in foreign courts and a modernization of the Copyright Office by putting registration and recordation systems online. Calling streaming piracy via plug-and-play devices an "insidious" threat, NCTA said the U.S. needs to engage trading partners more on adopting and enforcing copyright protections, and IPEC needs to prioritize trying to persuade trading partners to shut illicit streaming services. It said the FCC should use RF equipment authorization powers to deter makers and importers of piracy devices from selling in the U.S. by bringing "stiff" monetary penalties. BSA sought engagement with trade partners. The Copyright Alliance and MPAA urged continued public access to Whois data (see here and here). The alliance said IPEC should back harmonization of criminal penalties for copyright infringement, so infringement of a public performance right -- typically a misdemeanor -- is treated the same as infringement of the reproduction and distribution rights, which can result in felony charges. It said the Trusted Notifier program between MPAA and some domain name registries bore fruit in fighting online infringement, and IPEC should encourage more domain registries and registrars to employ similar arrangements. The Independent Film & TV Alliance and RIAA and National Music Publishers' Association (see here and here) said Congress should classify large-scale streaming piracy as a felony. The U.S.-Mexico-Canada Agreement doesn't include a fair use standard, and IPEC should encourage U.S. trade negotiators to push for one, R Street Institute said, urging roundtable discussions on such issues as how the U.S. can encourage other nations to adopt fair use models. Public Knowledge said IPEC needs to be mindful of how enforcement schemes might affect non-infringing users. PK said enforcement should focus "on targeted bad actors." The Internet Association said the U.S. needs to defend copyright law flexibility that includes fair use and Digital Millennium Copyright Act safe harbors both domestically and internationally. Push back against curtailing intermediary liability protections, IA asked. Tech groups told the U.S. Trade Representative that bolstering IP rights should be a high priority in negotiating a new trade agreement with Japan (see 1811260011).

Signing off on U.S. nonfederal devices accepting signals from Europe's Galileo system will bring the FCC in line with where global navigation satellite system (GNSS) receivers have been for years, experts told us. The FCC "is really playing catch-up" with the draft order on Thursday's agenda (see 1810240030), said Bradford Parkinson, vice chairman of the Space-Based Positioning, Navigation and Timing National Advisory Board. "Industry is way ahead."

A concern with the coming era of smart cities is a potential for data misuse or a surveillance state, said FCC Commissioner Mike O'Rielly at a Charter Communications event Tuesday (remarks later posted). He said privacy advocates are misguided to fret about consumer data being used for marketing purposes when far greater harms could come from the state using data to control or punish citizens. He said the FCC has been trying to ensure the proper regulatory framework for smart city rollouts as it tries to remove state and local deployment barriers and guard against its own mission creep. He said beyond the various millimeter band auctions to come, starting with the 28 GHz band, a number of other bands need FCC attention, such as 26, 23 and 50 GHz. He said the agency needs to focus on opening the 3.7-4.2 GHz band and spectrum below 3.5 GHz. He said the FCC should start a proceeding to review the 5.9 GHz band and determine its best use since dedicated short-range communications systems there seem increasingly unlikely due to alternatives like cellular vehicle-to-everything technology. Monday, the FCC released initial results on Wi-Fi coexistence with DSRC (see 1810290063). Columbia, South Carolina, Mayor Steve Benjamin (D) said smart cities raise a variety of questions, such as ensuring network deployment in public rights of way doesn't impede other users and that all ROW users "pay their fair share" for that access. On rollout in rural areas, "we don't yet have the answers" or the economies of scale that would make the technology available, said NTIA Senior Broadband Program Specialist Jean Rice. Tests are ongoing in states involving aspects of smart cities such as telehealth or agriculture, Rice noted. Criticizing the privacy law California passed this summer, Chamber of Commerce Assistant Policy Counsel Jordan Crenshaw said the Chamber wants to stem the tide of different state laws and has a working group on developing privacy principles for model legislation to be pitched to Congress. He wants protection ensuring localities don't charge unreasonable siting fees and regulatory certainty in the form of "a permanent net neutrality solution" that doesn't involve treating cable as a Communications Act Title II common carrier.

T-Mobile's broadside at Dish Network's IoT plans is likely at least partially payback for Dish's opposition to T-Mobile buying Sprint, experts told us. The timing of the wireless company's letter to FCC Wireless Bureau Chief Don Stockdale (see 1810260047) -- a month after Dish joined public interest and consumer groups and representatives of mostly rural carriers in opposition (see 1808280038) -- reads as "sour grapes retribution," said Gigi Sohn, Georgetown Law Institute for Technology Law and Policy fellow. Dish fought back.

With Sky under Comcast's belt, analysts see the obvious next big step a major leap into over-the-top offerings. NBCUniversal CEO Stephen Burke, in an earnings call Thursday, said while the world pivots toward more streaming, the company wants to "protect and nurture" its pay-TV business. He said industry has rushed into streaming, but economics are challenging.