Ajit Pai Opposes Effort To Update The Definition Of Broadband

from the 640K-ought-to-be-enough-for-anybody dept

The Telecom Act of 1996 mandates that the FCC routinely assess whether broadband is "being deployed to all Americans in a reasonable and timely fashion," and do something about it if that's not the case. As part of that mission, the FCC also periodically takes a look at the way it defines broadband to ensure the current definition meets modern consumer expectations and technical advancements. That's why, much to the telecom industry's chagrin, the FCC in 2015 changed the definition of broadband from a fairly-pathetic 4 Mbps downstream and 1 Mbps upstream to the current standard of 25 Mbps downstream and 3 Mbps upstream.

Telecom monopolies (and the lawmakers paid to love them) whined incessantly about the changes at the time. Why? Because the higher definition only highlights how there's virtually no competition at faster speeds in the U.S. It also highlights how because countless U.S. telcos have shifted their focus to more immediately-profitable ventures (like flinging video ads at Millennials), they've neglected network upgrades on a comical scale. As a result, most modern telcos fail to even technically sell "broadband" across vast swaths of America, giving cable giants like Comcast a bigger broadband monopoly than ever before.

As such, you can kind of understand why, if you're a lumbering broadband monopoly, why you'd prefer the definition of broadband remain at ankle height.

With the FCC preparing its latest assessment of the broadband broadband industry as required by law, the question over whether the broadband standard should again be lifted has again raised its ugly head. Especially given that in the age of symmetrical gigabit (1 Gbps) connections and cloud storage, that 3 Mbps upstream standard is looking a little lame. But in a Notice of Inquiry (pdf) published last week, Pai’s FCC proposed keeping the current 25/3 definition intact, something that apparently annoyed his fellow Commissioner Jessica Rosenworcel.

In a statement (pdf), Rosenworcel suggests that symmetrical 100 Mbps would be a far more ambitious goal to aim for:

"...This inquiry fundamentally errs by proposing to keep our national broadband standard at 25 Megabits per second. I believe this goal is insufficiently audacious. It is time to be bold and move the national broadband standard from 25 Megabits to 100 Megabits per second. When you factor in price, at this speed the United States is not even close to leading the world. That is not where we should be and if in the future we want to change this we need both a more powerful goal and a plan to reach it. Our failure to commit to that course here is disappointing.

Disappointing but not surprising. Again, an even higher bar would only more clearly illustrate that a huge swath of the broadband industry has effectively given up on upgrading their broadband networks at any real scale, a reason why countless consumers can only get sub 3 Mbps DSL from their incumbent telco.

Pai's unwillingness to aim higher is also unsurprising given he was recently forced to retreat from a plan that would have technically lowered the broadband definition bar back down to 10 Mbps. Pai had attempted a policy change that would have declared any 10 Mbps wireless connection good enough to be considered broadband, a move that would have ignored the fact that wireless connections are subject to all manner of limits (caps, overage fees, weird restrictions on HD video, rural congestion) making them a less than suitable full replacement for fixed line broadband.

With Pai's net-neutrality-killin' majority controlling any meaningful vote on this subject, it's likely that if the definition of broadband changes at all, it will likely be lowered. After all, you certainly wouldn't want any data highlighting how broken the U.S. broadband market currently is, lest somebody get the crazy idea to actually do something about it.

Filed Under: ajit pai, broadband, competition, definition, jessica rosenworcel, speeds

FCC Commissioner Says Her Agency Is Now Just A Giant Rubber Stamp For Sinclair Broadcasting

from the ill-communication dept

If you've been napping, the Ajit Pai run FCC has been busy gutting decades-old media consolidation rules just to grease the skids for Sinclair's planned $3.9 billion acquisition of Tribune. The deal, if completed, would give Sinclair ownership of 230 broadcast stations, reaching 72% of the public with what's generally considered facts-optional "news" on a good day. Consumer advocates and media watchdogs have been warning about the negative impact such media consolidation has on competition and local reporting for decades, largely to yawns and eye rubs from many in the tech sector.

The importance of limits on media consolidation have seen renewed attention as the United States tries to get a hold of its previously-ignored disinformation problem(s). Last week Deadspin published a video highlighting how Sinclair forces its reporters to parrot factually-dubious commentary in a relatively creepy fashion, much of it blasting any critical reporting on the Trump administration as "fake news":

It's worth noting that opposition to Sinclair's deal is bipartisan in nature. Democrats oppose the deal because it would extend the reach of a "news" organization that has repeatedly been caught parroting Trump disinformation and misleading its audience. But many Conservatives oppose the merger as well, rightly worried that a larger Sinclair could have a stifling impact on smaller news organizations. And many Sinclair employees say they're frustrated by the company's policies as well, but note that noncompete and other contract language makes quitting financially untenable:

"After Sinclair Broadcast Group Inc. drew widespread criticism for having anchors read a statement taking aim at the integrity of other U.S. media outlets, many wondered why some of the company’s journalists didn’t just quit.

The short answer is the cost may be too steep. According to copies of two employment contracts reviewed by Bloomberg, some Sinclair employees were subject to a liquidated damages clause for leaving before the term of their agreement was up: one that requires they pay as much as 40 percent of their annual compensation to the company."

While Deadspin's video brought some welcome attention to our mindless media consolidation problem and the impact it has on quality local reporting, most of the analysis didn't even tell the full story. For example, few bothered to point out that FCC boss Ajit Pai is already facing a bipartisan investigation by the FCC's own Inspector General for potential corruption in his dealings with Sinclair. And many overlooked this recent lamentation by Pai's fellow Commissioner Jessica Rosenworcel on how Pai's FCC is little more than a glorified rubber stamp for the alternative-fact broadcaster:

"Every element of our media policy is custom-built for the business plan of Sinclair Broadcasting,” says Rosenworcel. “That is stunning, it is striking, and it looks like something’s wrong. And I’m not the only one to think that. We’re burning down the values of media policy in this agency in order to service this company."

"Looks like?" Of course none of this is entirely new, and pushing through unpopular megamergers without seriously weighing the negative impact on markets or the public welfare is a time-honored, bipartisan tradition. Much like the man who appointed him, Pai's just taking existing, long-standing dysfunction, corruption and revolving-door regulation to an entirely new level. And if Pai's response to the massive net neutrality backlash is any indication, he's too intellectually and ideologically cocksure to seriously weigh legitimate bipartisan criticism (or the facts) ahead of the Sinclair merger vote later this year.

Being an unelected bureaucrat there's not much to do about Pai outside of voting out his employer, but hopefully his mindless defense of broadband, media, and even prison phone monopolies at least serves an education function for those with the tendency to ignore a decade of warnings about the downsides of mindless M&A mania.

Filed Under: ajit pai, fcc, jessica rosenworcel, media mergers, oversight
Companies: sinclair broadcasting

FCC's Wheeler May Need To Stick Around If He Doesn't Want His Legacy Demolished

from the rock-and-a-hard-place dept

So we've talked a lot over the years about how few people expected much from FCC boss Tom Wheeler, given his history lobbying for the wireless and cable industries. But amazingly enough, Wheeler wound up being one of the most consumer, small business, and competition-friendly bosses in FCC history (not that this is saying much). He passed net neutrality rules, new broadband privacy protections, raised the definition of broadband to 25 Mbps (to highlight a lack of competition at higher speeds), and more. In short, he wasn't the dingo many thought him to be.

Now, with an incoming Trump administration making it very clear in public comments the goal is to kill net neutrality and gut the FCC as consumer broadband watchdog, the lion's share of Wheeler's efforts are poised to be demolished.

This puts Wheeler in a notably prickly predicament. Wheeler's term technically extends until 2018, but under FCC rules he would be downgraded from Chairman to just vanilla commissioner should he stay on. If Wheeler leaves, the current FCC would face an immediate 2-1 Republican advantage. If he stays, the FCC remains with an even partisan 2-2 split, with Wheeler and Mignon Clyburn on one side, and Ajit Pai and Mike O'Rielly on the other -- at least until a new FCC boss is appointed to round out the five-person FCC leadership.

Senate confirmation could take a large chunk of 2017, delaying any substantive policy changes. But if Wheeler chooses to leave, the 2-1 voting advantage would allow those looking to eliminate net neutrality and other recent FCC initiatives a running head start. Wheeler's predicament is thanks, in part, to the GOP refusing to renew current FCC Commissioner Jessica Rosenworcel to another term, something leaders originally promised they'd do -- then backed away from realizing they might have an advantage. Wheeler tried to force the issue last week when he said he'd resign immediately if Rosenworcel was reappointed to a new term.

But Republicans refused to make any such deal hoping to gain the early advantage:

"Republicans previously said they would not reconfirm Rosenworcel unless Wheeler resigned, because one Democrat must exit the FCC to let President-elect Donald Trump appoint a new Republican and give his party a 3-2 majority. But by the time Wheeler promised to do so, Republicans had other ideas. There wasn't enough time left in the Senate's session to handle Rosenworcel's confirmation, Commerce Committee Chairman John Thune (R-S.D.) said. Other Republicans supported taking no action on Rosenworcel because they hope both she and Wheeler will leave and give Republicans an immediate 2-1 majority."

In an ideal world, partisan pattycake wouldn't dictate important technological issues of the age. Especially since issues like net neutrality actually have broad bipartisan support, and are only shoehorned into the mold of partisan politics because they operate in a dysfunctional vacuum. Ensuring that there's broadband competition (and by proxy cheaper, better service) enjoys similar bipartisan support among consumers. As does not letting incumbent ISPs write harmful protectionist state legislation solely to protect incumbent revenues from competition.

None of this is probably a particularly enjoyable position for the 70-year-old Wheeler to inhabit. Instead of enjoying his retirement, Wheeler faces being forced to stick around if he doesn't want four years of hard work dismantled. And even if he does stick around, he'll inevitably find himself at the mercy of a 3-2 minority position anyway, one where he'll spend four years losing an endless series of 3-2 votes that carefully chip away at everything he fought for. In short, the recovering dingo is damned if he does, and damned if he doesn't -- music to the ears of those looking to strip away neutrality and other consumer protections.

Filed Under: fcc, jessica rosenworcel, tom wheeler

Under Cable Lobbying Assault, FCC Commissioners Waffling On Cable Box Competition Plan

from the $21-billion-reasons-to-fold dept

The cable industry's relentless lobbying assault on the FCC's plan to bring competition to the cable box appears to be working. As we've been covering, cable lobbyists have been filling editorial sections nationwide with all manner of misleading dreck, claiming the FCC's plan (which you can read here (pdf)) will increase piracy, hinder innovation, hurt minorities, and rip giant holes in the time-space continuum. They've also engaged in the time-honored tradition of paying lawmakers that have no idea how technology works to make all manner of false claims about what the FCC's plan actually does.

Unfortunately for those of you tired of paying the cable industry $21 billion annually to rent a shitty cable box, it looks like the efforts are working.

Two of the Democratic Commissioners that originally voted yes on the plan say they're starting to get cold feet, surely only coincidentally after the cable industry decided to ramp up lobbying to levels not seen since 2009 to try and kill the plan. FCC Commissioner Jessica Rosenworcel, for example, is now claiming that the FCC plan she voted for is "too complicated" and that the FCC should compromise with the cable industry on some kind of new arrangement:

"Kudos to the chairman for kicking off this conversation [Rosenworcel voted along with Wheeler and Democrat Mignon Clyburn to kick off that conversation], but it has become clear the original proposal has real flaws and, as I have suggested before, is too complicated. We need to find another way forward." She was not endorsing the cable effort, but instead appeared to be supporting the effort to find a compromise proposal that addresses the flaws. "I am glad that efforts are underway to hash out alternatives that provide consumers with more choice and more competition at lower cost."

Except there's nothing really that complicated or "flawed" about what the FCC is proposing. Under the plan, cable operators simply have to provide access to their programming -- using systems and copy protection of their choice -- to third-party hardware vendors without the need for a cable card. While there's certainly some engineering challenges with the idea, the "complicated" part only really comes from the cable industry's decision to fight cable box competition tooth and nail.

Meanwhile, the "compromise" referenced by the article that appears to have swayed Rosenworcel isn't much of one. Instead of real cable box competition, the cable industry has proposed a plan whereby they simply have to deliver their programming via app -- but consumers would still have to pay for a cable box if they want to do things like record via DVR. Consumer advocates and groups like INCOMPAS are warning that the cable industry will go out of is way in any voluntary proposal to find creative ways to continue forcing consumers to use their hardware and services.

And Rosenworcel doesn't appear to be alone in waffling. Commissioner Mignon Clyburn also appears to be buckling under the weight of false narratives suggesting the FCC's plan somehow needs to be rolled back, lest it damage "copyright, security and privacy":

"We also asked Democratic Commissioner Mignon Clyburn's office if she still supports the original proposal and got this response: "Commissioner Clyburn appreciates and welcomes the constructive ‎efforts by industry to put forward an alternative apps-based proposal. She continues to study the proposal with an eye towards a solution that adheres to Section 629 of the Communications Act; ensures truly competitive choice; enhances access to diverse programming; and provides the protections for copyright, security and privacy that consumers have come to expect."

Note again that the two waffling commissioners don't really provide any solid reasons why the FCC's original proposal couldn't work, but it's pretty clear that they've been influenced -- to one degree or another -- by the paid sound wall cable lobbyists have constructed in trying to scuttle real cable box competition. With their fellow Commissioners Pai and O'Rielly voting no on the proposal (because voting no on consumer friendly policies is their entire purpose in life) and foundering support among Democratic commissioners, Wheeler won't have the political firepower to get the plan approved.

Again that's not the end of the world. The legacy cable TV industry's empire is slowly crumbling with or without the FCC's help, it will just take a little longer if the FCC doesn't give the entire process a swift kick in the ass. If the FCC's cable box proposal sinks, the agency has more time and calories to focus on what's truly going to be important in the new streaming TV age: bringing real, sustained competition to bear on the broken U.S. broadband market.

Filed Under: cable, cable tv, competition, fcc, jessica rosenworcel, mignon clyburn, monopolies, set top box, tom wheeler, unlock the box
Companies: comcast, time warner cable

Diametrically Opposed FCC Commissioners Both Agree That Tom Wheeler Should Pull Back On Net Neutrality Rule Making

from the think-this-through dept

So last night we wrote about over 100 internet companies asking Tom Wheeler, to rethink his plans for his open internet "net neutrality" rule making -- warning that proposed rules that harm an open internet would be a very bad thing. In that post, we mentioned that FCC commissioner Jessica Rosenworcel had asked Tom Wheeler to delay his plan to push forward with the rulemaking, but that Wheeler intended to move forward anyway. This morning, the pile-on against Wheeler continued, starting with a fantastic letter from over 50 venture capitalists who invest in the internet space, warning what bad rules will do to innovation and the economy (a letter they put together in less than a day).

And then another FCC commissioner, Ajit Pai, also asked Wheeler to hold off and not offer up his open internet rules at the meeting next week. It would be big in general to see two FCC commissioners directly asking the FCC chair to hold off, but it's especially noteworthy that it's Pai and Rosenworcel doing this -- as they tend to come at things from the opposite end of the spectrum (FCC-ish pun not intended). Pai is a Republican commissioner and Rosenworcel is a Democratic one -- and they generally don't agree on much, policy wise. In fact, it's unlikely they agree on why these rules should be stalled -- but at least they both realize that rushing forward with half-baked rules are a serious problem.

For about a decade now, I've argued that one of the reasons why net neutrality became a "toxic" issue was because it became a partisan issue. In the early days it wasn't, but somewhere in the mid-2000s, it suddenly became a "Democratic" issue, and Republicans started attacking it. And that just killed any rational discussion about keeping an open internet. Perhaps, now that the issue is finally getting renewed attention, we can get passed partisan bickering and focus on making sure that the internet actually remains open, with greater competition, and continued freedom to innovate.

Filed Under: ajit pai, fcc, jessica rosenworcel, net neutrality, open internet, tom wheeler, venture capitalists

Over 100 Internet Companies Call On FCC To Protect The Open Internet

from the don't-fail-us-fcc dept

As the net neutrality debate has kicked into overdrive, over 100 internet companies -- including most of the big names such as Google, Facebook, Twitter, Microsoft, Netflix, Amazon, Ebay, Reddit, Automattic, Yahoo, Kickstarter, as well as many smaller names, such as us here at Floor64/Techdirt -- have all signed onto a letter to the FCC asking it to actually suck it up and protect the open internet. Consider this a warning shot to the FCC from the internet community. The community knows what's at stake in this fight and it's watching closely what the FCC does. Having helped to get some of the companies to sign on, I can say that many leaders at companies are both very informed on the topic, and very engaged about it. If the FCC thinks it can sneak one by the tech community, that may be more difficult than it expects.

Along those lines, one FCC commissioner, Jessica Rosenworcel, has suggested that the FCC should put the brakes on its net neutrality plans to think things through a bit more carefully -- though apparently FCC boss Tom Wheeler has rejected that idea and plans to move forward with his rule-making proposal next week.

Filed Under: broadband, fcc, jessica rosenworcel, net neutrality, open internet, silicon valley, tech industry, tom wheeler
Companies: amazon, automattic, ebay, facebook, floor64, google, kickstarter, microsoft, netflix, reddit, twitter, yahoo