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January 13th, 2009

US media gets a new guardian at FCC

Posted by: Yinka Adegoke

After much speculation and guess-work, President-elect Barack Obama has chosen his former Harvard Law classmate Julian Genachoswski as nominee for chairman of the U.S. Federal Communications Commission.

Genachowski, who has been Obama’s technology advisor, had been on most people’s guess-list for a new “chief technology officer” post with the incoming administration — though some outlets had called it last week on his FCC appointment.

So who is Genachowski? Well, most outlets believe he should understand the future of media as he’s held several posts at Barry Diller’s Internet media business IACI and he’s previously been a chief counsel for former FCC Chairman Reed Hundt, the chairman under former President Bill Clinton.

That experience will help with two big upcoming Internet-related issues. The first is Obama’s ambitious plan to invest in broadband technology expansion as part of his economic stimulus package.

The second more challenging issue is Net neutrality, the idea of an open and level Internet for all players regardless of their size. The FCC chair will be trying to manage the expectations of Internet service providers, content companies and everyday consumers.

But top of the list of his Genachowski’s to-do list will be ensuring the congressionally mandated conversion to digital television on Feb. 17 goes smoothly. Obama aides have backed an idea to delay the planned transition to avoid millions of televisions going blank.

(Photo: Reuters)

Keep an eye:

  • Warner Bros. seeks 10 percent cost cut, could mean layoffs - (AP)
  • Monster.com is taking a humorous approach in a new ad campaign (NY Times)
  • Golden Globes gets smallest TV audience in years - (Reuters)
October 16th, 2008

Digital TV transition tour to hit NASCAR circuit

Posted by: Jeremy Pelofsky

Federal regulators and U.S. lawmakers are trying every trick in the book from Web sites to road shows to make sure Americans know that the digital television transition is coming soon — which could mean those without cable or satellite would only see black unless they buy a new television set or get a converter box.rtx78xz.jpg

On Thursday the Federal Communications Commission decided to take their efforts one step further — to NASCAR. The agency plans to sponsor driver David Gilliland (car #38) for three races of the widely popular spectator sport.

“I believe this sponsorship is an extremely effective way for the FCC to raise DTV awareness among people of all ages and income levels across the United States who loyally follow one of the most popular sports in America,” said FCC Chairman Kevin Martin.

Another FCC commissioner, Robert McDowell, earlier this week warned that the transition will be messy and pressed broadcasters to step up their campaign to educate the public about the Feb. 17, 2009 switch to the higher quality signals.rtr9x1j.jpg

Some 15 percent of U.S. households use only analog sets so they would have to buy a converter box or a new set. The Government Accountability Office has warned that regulators are unprepared for an expected surge in consumer demand for help when the transition arrives.

The government has offered $40 coupons to help consumers buy converter boxes but the GAO has said there is no plan to deal with the last-minute spike in demand for them.

(Photos: Reuters)

August 1st, 2008

Comcast FCC decision: the reactions

Posted by: Yinka Adegoke

kevinmartinfcc.jpgThe U.S. Federal Communications Commission today ordered the largest U.S. cable TV operator Comcast Corp to change how it manages its broadband network. The regulator concluded that some of Comcast’s tactics unreasonably restrict Internet users who share movies and other material.

The 3 to 2 decision supported by two Democrat commissioners and the Republican chairman,  is precedent-setting. It could kick-start a long-simmering ‘net neutrality’ debate between advocates, who believe Internet access should always be open without interference, and some Internet service providers, who believe they should be allowed to manage Internet delivery in order to provide the best service to all users. The FCC seemed to support the former group.

“Subscribers should be able to go where they want, when they want, and generally use the Internet in any legal means,” FCC Chairman Kevin Martin said in a statement.

 Here are some reactions:

We are disappointed in the Commission’s divided conclusion because we believe that our network management choices were reasonable, wholly consistent with industry practices and that we did not block access to web sites or online applications, including peer-to-peer services. We also believe that the Commission’s order raises significant due process concerns and a variety of substantive legal questions.  We are considering all our legal options and are disappointed that the commission rejected our attempts to settle this issue without further delays.

Sena Fitzmaurice, Comcast senior director, Government Affairs

I believe today’s FCC action sends a strong message to the industry that the Commission intends to take Internet freedom principles seriously and will act to protect the integrity and openness of Internet commerce and communications.  Vigilance by regulators and policymakers, coupled with a commitment to act when necessary, is vital to thwart the emergence of new bottlenecks to competition and innovation.  I commend Chairman Martin, as well as Commissioners Copps and Adelstein, for their recognition of this fundamental tenet of realistic telecommunications policymaking. 

Rep. Edward Markey (Democrat),  chairman of the House Subcommittee on Telecommunications and the Internet.

Today’s order makes it clear that there is nothing reasonable about restricting access to online content or technologies. Moving forward, this bellwether case will send a strong signal to cable and phone companies that such violations will not be tolerated.  But the fight is far from over. A duopoly market — where phone and cable companies control nearly 99 percent of high-speed connections — will not discipline itself. We look forward to working with the FCC and Congress to ensure proactive measures keep the Internet open and free of discrimination, and accessible to all Americans.

Josh Silver, executive director of Free Pres (Free Press was one of two parties that brought the complaint against Comcast)

No one has seriously questioned the right of network operators to reasonably manage their networks.  They will continue to do so after this Order.  But, there is nothing reasonable about the use of techniques that indiscriminately target applications or protocols, regardless of their use.  This is something that anyone who cares about the free and open Internet should be concerned about.  Equally important, all free markets require transparency in order to be effective.

Gilles BianRosa, Chief Executive Officer Vuze Inc. (Vuze was the other party to bring the complaint against Comcast)

There is no longer any doubt that ISPs have the right to use network management tools to address unlawful activity - including the theft of copyrighted music.  We applaud Chairman Martin’s clear affirmation that ISPs may use technology to prevent the theft of copyrighted works.  There is a crystallizing consensus among governments around the globe that ISPs should be taking affirmative steps to address piracy on their networks.  It is our hope and expectation that ISPs here will accelerate their efforts to work with us to address online piracy.

Mitch Bainwol, Chairman of Recording Industry Association of America.

The  FCC  should  be  careful  what  they  wish  for. If network operators can’t manage traffic loads one way, they’ll need  to  do it another.  By banning  discrimination based on application  or  content,  the  FCC - and  Net  neutrality proponents  more  broadly - are  pushing  network  operators closer  and  closer  to  what  is  increasingly  their  only  viable alternative option - Usage Based Pricing.  UBP might just be the  best  thing  that  ever  happened  to  the  network  operator crowd.  And it might be the worst thing that ever happened to applications and content.

Craig Moffett, analyst Sanford Bernstein

(Photo: Reuters / FCC’s Kevin Martin)

May 29th, 2008

Uncle Walt bends FCC chairman over his knee

Posted by: Eric Auchard

Walt_MossbergKevin_MartinWalt Mossberg, the world’s most powerful technology product reviewer, opened the final session of the D: All Things Digital conference with an angry tirade against the s-s-s-low state of broadband in the United States.

“WE ARE VERY SLOW,” Mossberg complained of U.S. Internet access speeds.

The target of 61-year-old Uncle Walt’s wrath was Kevin Martin, 42, the boyish-looking chairman of the Federal Communications Commission, who was punished on-stage before an audience of high-tech industry insiders.

Mossberg: “You are the head of the FCC. How have you allowed this to happen? I AM DEAD SERIOUS. HOW HAVE YOU ALLOWED THIS TO HAPPEN?

Martin: “I am not sure I am solely responsible. I am also not sure the charts capture the whole story. I think you do have to put in the context some of the demographics of the United States and some of the countries we are competing against.

Mossberg: Does that explain why we pay $12.50 per megabit in the United States as opposed to $3.09 in Japan and $3.70 in France? Why are we paying four times as much?

Martin: Yes it does. Because it costs a lot more to build out in more rural areas and people who live further apart… We have a history of averaging some of the cost to make it affordable for people in Montana.

Martin should have seen it coming. Mossberg has been on a crusade over slow broadband speeds for some time, including a call to stop calling slower-speed DSL “broadband.” It’s just one of the many things that annoy him about how computer and consumer electronics industries treat their consumers. Other pet peeves include junk programs pre-installed by PC makers Mossberg calls craplets and any device that doesn’t aspire to Apple-scale product design genius.

Here are the stats that Mossberg and Martin were debating:

Broadband_costs

(Photos: Reuters)