FCC Commissioner Ajit Pai said Thursday he cannot support spectrum aggregation rules for the TV incentive auction that would freeze some carriers from bidding in some markets where they already hold licenses for substantial amounts of low-band spectrum. Pai spoke at a Mobile Future forum. Chairman Tom Wheeler planned to circulate late Thursday draft spectrum aggregation rules for a vote at the FCC’s May 15 meeting.
SiriusXM’s telematics revenue will double to $200 million by 2017, as the company builds on its Agero acquisition and the connected vehicle market emerges from its “early stages,” CEO James Meyer said Thursday on an earnings call.
A Supreme Court win for Aereo would mean broadcasters continuing the battle in court and in Congress while cable companies strategize against retransmission consent, several attorneys told us in interviews. Though several observers think the court’s decision may be leaning toward broadcasters, the justices seemed conflicted at Tuesday’s oral arguments (CD April 23 p1). While some investors may have been poised to move money based on news from the court, the oral arguments didn’t show the court leaning convincingly enough in either direction to move markets, Guggenheim Partners analyst Paul Gallant told us. “We were warned not to put too much thought into the oral arguments given that it is never easy to ‘read’ the Supreme Court’s final decision during this part of the case,” said Wells Fargo analyst Marci Ryvicker in an email to investors. The high court decision is expected this summer.
Some members of Congress are cringing at the basic idea of the FCC reinstating net neutrality rules, as others balk at reports of what these new rules will look like. Three House lawmakers have an especially keen interest in any new FCC net neutrality rules, they all said during an episode of C-SPAN’s The Communicators set to be telecast Saturday. Two Republican members of Congress cautioned against any agency attempts at restoring net neutrality rules, which the U.S. Court of Appeals for the D.C. Circuit vacated in a January ruling, while a Democrat viewed the possibility of new rules more hopefully.
The FCC unanimously voted to make changes to the Connect America Fund (CAF) framework, at its meeting Wednesday. As expected (CD Dec 18 p2), the much-maligned quantile regression analysis formula is out, although what QRA will be replaced with remains an open question. Rural groups commended the commission for finally doing away with a USF disbursement regression formula that caused uncertainty and wreaked havoc on rural broadband investment. Rural groups are also pleased about a further NPRM that proposes a standalone broadband fund for rate-of-return carriers, which would provide support to rural telcos even if their customers don’t want to purchase bundled phone service.
The FCC-commissioner Widelity report on the projected costs of repacking broadcasters after the incentive auction doesn’t provide enough information, underestimates the effects of industry bottlenecks and downplays the amount of time the effort will take, commented broadcasters, antenna firms and industry associations. Stations won’t know in advance whether their channels will change or the availability of workers and equipment to physically enact that change, said antenna-maker Dielectric. Most comments were posted Tuesday in docket 12-268. The “fundamental problem” with the report (CD March 24 p12) is that “the FCC has not provided sufficient public information to stakeholders about what the repacking plan is and how they can prepare for it properly,” Dielectric said.
Global Internet governance representatives appeared in agreement on the validity of the multistakeholder model for Internet governance, but some -- such as the Russian delegate -- offered suggestions about more multilateral involvement, on the opening day of NETmundial. The meeting was webcast from Sao Paulo, Brazil, and was expected to be the first of many Internet governance events about a controversial U.S. plan to transfer some Internet technical authority (CD April 23 p19). Nearly every speaker supported NTIA’s proposed transition of the Internet Assigned Numbers Authority (IANA) functions through Internet Corporation for Assigned Names and Numbers multistakeholder process.
The FCC approved a further NPRM on sharing in the 3.5 GHz band, with both Republican commissioners complaining that the exclusion zones proposed are much too big for the band to reach its potential as a laboratory for spectrum sharing. The notice largely proposes the same exclusion zones as the original rulemaking proposal from 2012, as was expected (CD April 23 p22). Use of the spectrum would be restricted inside the zones to protect government incumbents.
Many players in the media landscape that want video regulations that foster increased competition remained at odds over CableCARD and program access rules, in replies on the 16th FCC video competition report. Verizon again stated its case against technology mandates like CableCARD, while TiVo continued its support for a successor to that regime. DirecTV and NCTA battled over whether there’s a need to maintain program access rules. Replies were posted Tuesday in docket 14-16, and initial comments had broken down along similar fault lines (CD March 25 p12).
CTIA Wednesday named former FCC Commissioner Meredith Baker its new president, effective June 2. Baker beat out her former colleague at the FCC, Robert McDowell, among others who had interviewed for the job (CD Jan 22 p1), industry officials say. Baker replaces Steve Largent, who has held the job since November 2003.