AT&T isn't buying Time Warner to use that content to drive value to its distribution business but the opposite, with aims of using its distribution arm to get more value out of the content, AT&T CEO Randall Stephenson testified Thursday in U.S. v. AT&T and TW. Limiting content "is not a good strategy," he said, saying when he first presented the TW idea to the AT&T board in September 2016, one of the issues discussed was how to do such a deal without hurting TW's wide distribution. AT&T/TW rested after Stephenson's testimony, with DOJ then calling a rebuttal witness, Ron Quintero of Chartered Capital Advisers, to testify on the deal's claimed efficiencies.
The FCC is expected to have an edge in Friday’s oral argument before the U.S. Court of Appeals for the D.C. Circuit against Free Press and other groups on the agency’s restoration of the UHF discount, but not as big of one as usual, attorneys and industry officials said in interviews. Courts tend to defer to agency decisions, but that dynamic is complicated by this decision being a direct reversal of a 2016 FCC decision to strike down the discount, said Fletcher Heald appellate attorney Harry Cole, who isn't connected to the case. “The FCC has broad discretion,” Cole said, but such a 180-degree turn allows opponents to paint it as a decision motivated by politics rather than the measured work of an expert agency. If the D.C. Circuit isn’t sure what argument is better, it will defer to the commission, said an experienced telecom litigator.
The U.S. needs a "national strategy" to advance rural broadband and "e-connectivity," said Secretary of Agriculture Sonny Perdue Wednesday at a department event organized by a rural stakeholder coalition. He said USDA loves to be a "convener" and wants to work with the FCC, the Department of Commerce and others to help expand and sustain rural broadband networks. "I don't think the awareness has ever been stronger" about the need and opportunities, he said. "I get excited" thinking about rural connectivity and its potential to usher in "transformative" gains in telemedicine, distance learning, precision agriculture and digital commerce, he added. "Now's the time. Let's get it done."
Senate Judiciary Committee members and Patent and Trademark Office Director Andrei Iancu expressed willingness Wednesday to explore legislative proposals on patent eligibility issues for artificial intelligence. Two Supreme Court decisions -- Alice Corp. v. CLS Bank International and Mayo v. Prometheus -- created “significant confusion” for applying traditional patent protections to AI algorithms, Iancu said during an oversight hearing. PTO can issue certain guidance and better clarity surrounding AI patent application, but “it’s not easy” since the office has those two cases for context. “If there is an interest in this committee or elsewhere, we would be very happy to work with you toward a solution,” Iancu said.
The questions being raised about Facebook and alleged use of customer data by Cambridge Analytica show why 2015 net neutrality rules shouldn’t have been overturned in December (see 1712140039), said former FCC Chairman Tom Wheeler. He led defense of the rules, approved on his watch, during an Intelligence Squared debate streamed live from Chicago Tuesday.
The idea that being part of New AT&T would give Turner leverage to raise its affiliate fees on distributors is like speaking Greek to the programmer universe, Time Warner CEO Jeff Bewkes testified in the U.S. v. AT&T and TW antitrust trial Wednesday. “It’s not how this works,” he said, saying any blackout of Turner would be “catastrophic” in lost advertising revenue and lost affiliate fees. He likened increased incentives to a Turner blackout under New AT&T to the equivalent of a 950-pound weight falling on that company’s head versus a 1,000-pound weight on TW’s head. AT&T CEO Randall Stephenson is scheduled to testify Thursday.
Former Marketing Strategy Leaders President Adrian Abramovich, fighting an FCC-proposed $120 million fine against his former Miami-based operation on spoofed robocall claims, denied the allegations during a Wednesday Senate Commerce Committee hearing and said he's being scapegoated for widespread industry practices. Abramovich, appearing under subpoena, drew senators' ire and a possible contempt citation because of selective invocation of his Fifth Amendment protection against self-incrimination to avoid answering questions about MSL's specific practices. Senate Consumer Protection Subcommittee ranking member Richard Blumenthal, Conn., and other Democrats pushed for additional legislation and federal agency action to combat the proliferation of abusive robocalls.
The FCC broadened its focus in the national security NPRM, approved by commissioners Tuesday, beyond just the USF. Commissioner Brendan Carr discussed the change at the meeting (see 1804170038). And review of the text posted Wednesday shows a new paragraph. Rural Wireless Association General Counsel Carri Bennet said she appreciates the FCC’s change in focus, but RWA members are concerned about reports that Chinese equipment makers Huawei and ZTE could exit the U.S. market.
The FCC will consider FM translator interference and mid-band spectrum for 5G, with a focus on the 2.5 GHz band, at its May 10 commissioners’ meeting, Chairman Ajit Pai blogged Wednesday. The agency also will vote on a media modernization proposal to eliminate requirements that broadcasters physically display their licenses, plus a hearing designation order and enforcement item that will remain confidential until the meeting. Pai noted it's the first meeting since 2009 lacking Mignon Clyburn, leaving as commissioner before then (see 1804170056) and 1804180071).
The FCC played down the policy influence of Elizabeth Pierce -- the Broadband Deployment Advisory Committee ex-chair arrested by the FBI last week for alleged wire fraud involving an Alaska fiber project (see 1804130055) -- after a government watchdog urged the commission to review the Quintillion ex-CEO’s BDAC work from April 2017 to September. Pierce’s alleged crimes accentuate local concerns about corporate control of the BDAC, said former member San Jose Mayor Sam Liccardo, who in January resigned in protest of imbalance between corporate and local members. One BDAC member defended the group.