Some independent programmers see AT&T’s approximately $67 billion takeover plan of DirecTV as an opportunity to expand distribution in other parts of the country, while others see stifling implications for indies from it and other pending consolidation. AT&T’s U-Verse platform features programming from AWE TV, HRTV and other networks. AT&T will continue to utilize independent programmers after its deal is approved, a spokesman said. “Our door is always open to any programmers that have great content that they are willing to license on commercially reasonable terms.” By expanding its broadband footprint, AT&T also plans to provide access to mobile, satellite and broadband customers for delivery of video, creating new opportunities for additional services, he said. Some indies are worried, though.
Sen. Ed Markey, D-Mass., assembled several liberal senators to ask the FCC to reclassify broadband as a Title II telecom service. Many Republicans and much of industry have opposed the move to reclassify, but Markey said it’s necessary for stronger net neutrality rules that would prohibit paid prioritization deals. Tuesday had been the initial comments deadline for the FCC’s net neutrality rulemaking proceeding, though the agency postponed the deadline. (See separate report above in this issue.)
The Permanent Internet Tax Freedom Act (PITFA) (HR-3086) passed the House by a voice vote Tuesday, said a House Judiciary Committee news release (http://1.usa.gov/1jv4FH5). PITFA bans any taxation on Internet access. “We applaud the passage” of HR-3086 “today in the House,” said a joint statement (http://1.usa.gov/1jv4FH5) from House Judiciary Committee Chairman Bob Goodlatte, R-Va., House Communications Subcommittee ranking member Anna Eshoo, D-Calif., House Judiciary Regulatory Reform Subcommittee Chairman Spencer Bachus, R-Ala., and House Judiciary Committee members Steve Cohen, D-Tenn., and Steve Chabot, R-Ohio. “We hope that the Senate promptly acts on this vital legislation before the November 1st deadline.”
Larry Pressler wants to move a Communications Act overhaul within the first half year of re-election to the Senate, he told us. More than a decade and a half ago, the then-Republican senator from South Dakota authored the 1996 Telecom Act in that chamber but lost his re-election bid to current Sen. Tim Johnson, a Democrat. Johnson’s retirement this year prompted the 72-year-old Pressler to run for the open South Dakota seat as an independent candidate, his eye again on telecom.
DALLAS -- Parties within state utility commissions and elsewhere opposed to the 10th U.S. Circuit Court of Appeals’ decision upholding the FCC 2011 USF/intercarrier compensation order (CD May 27 p1 ) should continue exploring options for appealing that decision even though available options have a low probability of succeeding, industry panelists said at the NARUC meeting. Those options include requesting an en banc review by the entire 10th Circuit or an appeal to the Supreme Court, said NARUC Counsel Brad Ramsay.
Net neutrality comments are due at the FCC Tuesday and most observers expect most key industry players to weigh in. Industry observers told us the battle lines are well drawn, but the comments are still likely to be closely read by the FCC and some could form the basis for eventual legal challenges to the rules. The FCC approved rules for the first time in December 2010, under former Chairman Julius Genachowski. In January, the U.S. Court of Appeals for the D.C. Circuit overturned many of the rules (CD Jan 15 p1), virtually guaranteeing that net neutrality would be a big issue for Genachowski’s successor Tom Wheeler as well.
If granted an exemption to test-fly drones outdoors on its Seattle property for a would-be package delivery service called Amazon Prime Air, Amazon “will effectively operate our own private model airplane field, but with additional safeguards that go far beyond those that FAA has long-held provide a sufficient level of safety for public model airplane fields,” the company told the Federal Aviation Administration in a petition.
The FCC need not intervene in data roaming negotiations between carriers and AT&T and Verizon, each said in comments. The FCC sought comment on a May petition by T-Mobile asking for a declaratory ruling containing guidance and “predictable” enforcement criteria for determining whether the terms of data roaming agreements meet the “commercially reasonable” standard adopted by the commission in its 2011 data roaming order (CD May 28 p9). Comments were posted Thursday and Friday in docket 05-265 (http://bit.ly/1sfqMnR). T-Mobile itself did not file comments.
Despite expressing some misgivings, Democratic FCC commissioners voted 3-2 along party lines Friday to approve what Chairman Tom Wheeler called a “watershed” E-rate modernization order that will provide $1 billion annually for the next five years for Wi-Fi connections within schools and libraries. In moves observers saw as having been made to forge a commission majority, while giving a nod to concerns from Senate Commerce Committee Chairman Jay Rockefeller, D-W.Va. (CD July 9 p5), and others that the Wi-Fi commitment could endanger funding for connecting schools and libraries to broadband, the order underwent a few changes from Wheeler’s original draft (CD July 2 p2).
FCC Republicans Ajit Pai and Mike O'Rielly sharply criticized Chairman Tom Wheeler Friday for refusing to negotiate on key orders like the order on E-rate reform. (See separate report above in this issue.) But Wheeler said the vast majority of items are still decided unanimously. FCC officials said the two Republicans believe they've been ignored on some big-ticket orders, including rules for the TV incentive auction.