Ohio’s Public Utility Commission rejected telecom union demands to rescind an order approving Frontier’s proposed acquisition of Verizon landlines and convene a new set of hearings on the matter. Ruling Tuesday, the commission said it found no merit in arguments for a rehearing advanced by the Communications Workers of America and the International Brotherhood of Electrical Workers. The unions claimed the commission wrongly and unlawfully approved the proposed transactions.
More than a year after the financial meltdown, the credit markets for broadcast deals have yet to thaw. But some industry officials said they see light at the end of the tunnel as ad sales continue to rebound and stations begin to develop new revenue streams through digital products. For now, lenders appear to be waiting for several consecutive months of ad sales growth before funding station transactions, said Mark Fratrik, vice president of BIA/Kelsey, a media consultancy. “I think banks want to see three to four months, maybe even two quarters worth, of strong or positive overall economic news and strong or positive ad revenue numbers,” he said.
The FCC is circulating a proposed order in response to a remand by the 10th U.S. Circuit Court of Appeals, an FCC official said. In 2001 and 2005, the court called the commission’s current non-rural high cost support mechanism unlawful, and reversed and remanded the rules. The commissioners will vote on the order by April 16, the official said. The FCC agreed to the deadline after Qwest and three state regulators filed a mandamus petition last year, the FCC official said.
The FCC announced Wednesday the launch of a small business broadband adoption public-private partnership, linking Score, the Small Business Administration’s volunteer arm and “private partners” including AT&T, Google, Microsoft, Cisco, Best Buy, Constant Contact, HP, Intuit, Skype, and Time Warner Cable.
The Comcast decision on net neutrality resonates in Europe, several sources said Wednesday. The ruling (CD April 7 p1) is a “nice reminder” that there’s a limit to what regulators can do, even in Europe, said Hogan & Hartson (Paris) telecom attorney Winston Maxwell. It could spark confusion over the connection between broadband and net neutrality regulation, said Innocenzo Genna, a Brussels telecom consultant. The issue of net neutrality is proving so important that French telecom regulator ARCEP plans a day-long conference on it this month. Among key topics is how to define it.
Company and government officials sought government policies that would let more consumers manage energy consumption using Web-enabled devices, they said at a briefing hosted by Google and the Climate Group Tuesday. Meanwhile, positive signs were seen on Capitol Hill on efforts that could meet the Obama administration’s goal of a comprehensive energy plan, said Carol Browner, assistant to the president for energy and climate change.
The FCC is likely to change its approach to net neutrality after losing a case Tuesday where enforcement of 2005 principles of ISP conduct was at issue, advocates for and opponents of new mandates told us. The U.S. Court of Appeals for the D.C. Circuit ruled that the commission lacked ancillary authority to censure Comcast’s network management practice of blocking peer-to-peer transmissions, as was expected (CD Feb 3 p2). The D.C. Circuit said it was unpersuaded by commission arguments that Sections 1, 230(b), 623, 706 and other parts of the Communications Act made the 2008 order within the scope of its congressional authority. Congress’ role is to facilitate “fresh” discussion on net neutrality, get consensus among all stakeholders and write a law, said House Communications Subcommittee Chairman Rick Boucher, D-Va.
Helping senior citizens recognize the Internet’s relevance to daily life is key in encouraging them to adopt broadband, representatives from groups for aging adults said Tuesday during a news conference. Consumer Action, Older Adults Technology Services and others formed Project Goal to promote broadband adoption to older adults. While 65 percent of Americans have adopted broadband, only about 35 percent of those over 65 have, said Blair Levin, executive director of the FCC Omnibus Broadband Initiative. The National Broadband Plan recommendations targeting under-adopted communities, including seniors, are just part of the effort, he said. “If the federal government tries to tackle barriers to adoption alone it will fail,” and it must “draw upon the power of community groups, private companies and government."
The November elections and other factors probably will slow Hill action on recommendations in the National Broadband Plan, said industry observers. The plan asks Congress for help in a number of key areas. Public safety and Universal Service Fund legislation may have the best chance for near-term action, but neither is a sure bet, they said. It seems particularly tough to move much on the broadband plan this year in the Senate, which right now “can’t agree that the sky is blue,” said a telecom industry lobbyist.
Potential rule changes in the wireless communications service band meant to open up new spectrum for broadband services still have several flaws, say Sirius XM and the WCS Coalition, reacting to a rulemaking notice issued Friday. Further disagreement over the rules was expected by the FCC Office of Engineering, International Bureau, and Wireless Bureau, which acknowledge in the public notice “the draft rules do not adopt any party’s proposal in full” but say the rules “take a fair and balanced approach” to facilitating broadband use in the largely unused spectrum.