Localities interests and allies see at least a short-term win with the FCC seeking to pause an appeal of its 2019 cable local franchise authority (LFA) decision, as the agency takes a fresh look at the order. They aren't sure the motion for abeyance filed with the 6th U.S. Circuit Court of Appeals means the agency will do a 180-degree turnabout on the order itself. A major issue with the rules and the odds of the agency doing anything about it is the deadlocked 2-2 FCC.
Matt Daneman
Matt Daneman, Senior Editor, covers pay TV, cable broadband, satellite, and video issues and the Federal Communications Commission for Communications Daily. He joined Warren Communications in 2015 after more than 15 years at the Rochester Democrat & Chronicle, where he covered business among other issues. He also was a correspondent for USA Today. You can follow Daneman on Twitter: @mdaneman
With lack of compliance with the 25-year post-mission disposal rule a big driver of orbital debris, regulators can boost compliance by making all permissions temporary, with renewal of licenses conditioned on operators meeting performance goals, said Ted Muelhaupt, principal director of Aerospace's Center for Orbital and Reentry Debris Studies. Also at LRA Institute's virtual conference Wednesday, FAA Space Traffic Program Lead Steph Earle said there should be a move away from blanket policies like the 25-year rule for all spacegoing missions in favor of a stratified approach, likening it to kayaks being subject to different regulations than ships. FCC International Bureau Satellite Division acting Chief Karl Kensinger said the 25-year rule at the commission resulted in some low earth orbit missions reducing their orbital altitude or adding drag enhancements. He said the satellite industry hasn't reached consensus on the FCC's proposal for a maneuverability requirement for all satellites above a certain altitude. Earle said FAA plans an NPRM, perhaps this fall, on proposed updates to orbital debris regulations for launch and reentry. He said transportation and satellite might end up with different debris mitigation rules, reflecting the industries' differences.
FCC media modernization on deregulation and rule streamlining seemingly came to an end with a new administration. Broadcast and cable lawyers told us there weren't major items left on the to-do list. No media items were on the first two monthly agendas of Jessica Rosenworcel's tenure as acting chairwoman, though we're told it's unlikely that signals media items will be completely back-burnered. The FCC didn't comment.
Allowing geostationary orbit (GSO) fixed satellite service (FSS) downlinks in the 17.3-17.8 GHz band on a co-primary basis with incumbent services got satellite operator backing and wireless concerns in docket 20-330 comments posted Thursday. Hughes, Telesat, SES, Intelsat, Eutelsat, Boeing, Lockheed Martin and Thales said the FSS allocations would help meet growing demand for more Ka-band downlink spectrum for high-throughput satellites. They said 17/24 GHz rules could be updated and extended to 17 GHz FSS networks. To protect incumbent direct broadcast satellite and broadcast satellite service operations, Hughes backed limiting geostationary FSS operations in the swath to low-density applications like gateways and feeder links. Inmarsat said FSS satellites that sought authorization in the 17 GHz band exponentially increased in the past 10 years, and growth will continue, with it launching Ka-band payloads on its GX6A and GX6B satellites and next three Xpress satellites over two years. Backing the NPRM, Viasat said the FCC should allow earth stations in motion to operate in the 17 GHz band in the same manner as GSO FSS earth stations and give blanket-licensed earth stations there the same level of interference protection as a conforming earth station that wasn't blanket licensed. Amazon's Kuiper urged a Further NPRM to consider allowing non-geostationary orbit FSS use of the 17.3-17.7 GHz band, saying it would "remedy the imbalance" between accessible uplink and downlink spectrum available to Ka-band systems. CTIA said it's "premature" to look at the 17 GHz allocations since it's intertwined with the 12 GHz band NPRM, and issues there haven't been considered. It said the proposed technical fixed service protections are outdated and may not protect it, and proposed FSS allocations and service rules could hurt some uses of the frequencies. AT&T urged operational requirements to protect incumbent DBS and terrestrial fixed service via such steps as wider minimum orbital spacing requirements between GSO FSS downlinks and existing and proposed incumbents' satellites and restriction of GSO FSS downlinks to gateway-type earth stations.
Charter Communications will continue in the cable TV business, though its video offerings will go beyond that, CEO Tom Rutledge said at a Morgan Stanley investor conference Tuesday. He said live TV being sold in a linear package will continue "for a significant period," though it's becoming less affordable and streaming products are gaining market traction. He said Charter will sell streaming packages alongside its existing video products. Though TV “is becoming a broadband product,” Charter will have cable TV service “for years," he said. Asked about competition from 5G fixed wireless as that service comes to market, he said 5G "would take an enormous amount of capital" to serve as a substitute for cable broadband and it's "not likely to be deployed rapidly." He said Charter's internet-only customers use around 700 GB monthly, while wireless-only averages around 10-12 GB, so 5G "is not a full replacement for where we're going."
Optical inter-satellite links are on the cusp of widespread use in low earth orbit satellite constellations, with adoption by SpaceX (see 2101270048) and with Telesat a part of a growing wave of use, satellite industry players and observers told us. One selling point is the lack of regulation and regulatory issues, they said.
This year offers "significant opportunities" for SES, including its first $1 billion in incentive payments from C-band repurposing (see 2102250046), CEO Steve Collar said Thursday as the company announced results. He said the SES-17 high-throughput satellite and O3b mPower medium earth orbit constellation have an increasing backlog of $740 million, before launch in the second half of 2021. SES-17 and mPower should bring "sustained profitable revenue" starting in 2023, he said. Collar said C-band clearing is on track to meet the company's December 2021 and December 2023 deadlines. SES said its SES-18, -19, -20 and -21 satellites are on track for launch in the second half of 2022 as part of the C-band clearing. SES said its $2.29 billion in revenue in 2020 is down from $2.43 billion the previous year.
AT&T will spin off its U.S. video distribution business in a $7.8 billion deal with TPG that will give the investment firm a 30% stake to AT&T's 70%. The telco said Thursday New DirecTV -- made up of its DirecTV, AT&T TV and U-verse video services -- will have a five-person board: two people each from AT&T and TPG, plus the new company's CEO, Bill Morrow, who currently heads AT&T's U.S. video unit. The transaction is expected to close in the second half of the year. This "aligns with our investment and operational focus on connectivity and content, and the strategic businesses that are key to growing our customer relationships across 5G wireless, fiber and HBO Max," said AT&T CEO John Stankey. He added it's in line with plans to invest in growth areas, maintain its dividend, focus on debt reduction "and restructure or monetize non-core assets." The spinoff "provides the flexibility and dedicated management focus needed to continue ... managing the business for profitability." “We certainly didn’t expect this outcome” when AT&T closed on DirecTV in 2015, Stankey said in a call with analysts. He said it lines up with “current realities of the market" and AT&T’s focus on connectivity and content, and improves the “overall growth profile” of the remaining core business. The carrier had strong wireless subscriber and fiber customer growth in 2020, and HBO Max adoption is surpassing expectations, he said. Asked about a similar sale of AT&T’s Latin American video assets, Stankey said the company has looked at opportunities for monetizing them and “we’ll continue to look at them … if the right opportunity popped up.” AT&T said it will receive $7.6 billion in cash from New DirecTV at close, which it will use to pay down debt, and the spinoff will assume $200 million in existing DirecTV debt. It said TPG will pay $1.8 billion in cash to New DirecTV for its stake, and New DirecTV has secured $6.2 billion in bank group funding. TPG Principal John Flynn said it anticipates growing New DirecTV's streaming video service while continuing DBS service to subscribers. AT&T said it and DirecTV will have a commercial agreement to continue offering bundled pay-TV service for its wireless and internet customers. Analysts said AT&T is under pressure to pay down debt after its big spending in the C-band auction (see 2102250046).
"Incredible" proceeds of the C-band auction "changed the game somewhat" in federal spectrum management, greasing the path for more federal agency participation in sharing or relocation, FCC Commissioner Nathan Simington said Thursday in a Lincoln Network talk. The $81.2 billion in auction proceeds (see 2102180041) show how valuable some spectrum is to commercial operators, making it clear there will be ample funds available for spectrum relocation fund (SRF) uses and "mitigating somewhat" the pain of federal relocation from those bands, he said.
AT&T and other ISPs would be happy with standardized bans on behaviors such as blocking or shaping online traffic, which they don't do anyway, instead of the net neutrality policy "whipsaw" that seems to follow changes in political parties, CEO John Stankey said Tuesday. Industry wants to avoid uncertainties of such possibilities as price regulation or behavioral constructs on new services, he said. Broadband accessibility -- which is largely a rural issue -- and affordability need to be addressed, he said. Funding for Lifeline needs changing because the system “is not going to make it. It’s an accident waiting to happen,” Stankey said. Subsidies must be sufficient to provide fixed broadband, not just mobile, he said. Noting China has an internet different from the U.S., Stankey said bifurcation of internet along national lines is likely to continue, as is bifurcation of internet standards.