The full FCC voted to adjust application fees to reflect a 3.7 percent increase in the consumer price index, said an order in Tuesday’s Daily Digest. The FCC "expects that this Order will become effective before October 1," the order said.
The 12 items on Thursday's FCC meeting agenda are the most in almost 10 years, bringing Chairman Ajit Pai's average to more than seven monthly agenda items, far outpacing recent predecessors. Pai is pursuing free-market, deregulatory policies aggressively, said most we queried, though some believe Pai is trying to overload critics. Pai pitched the commissioners' meeting as a "summer blockbuster" on high-band 5G spectrum, cable leased-access reversal, satellite broadband, intercarrier compensation, rural broadband, telecom legacy discontinuance streamlining aimed at spurring wireline broadband, and other items (see 1805160051).
The top 95 percent of pay-TV providers lost roughly 305,000 net video subscribers in 1Q vs. a loss of about 515,000 subscribers in Q1 2017, said Leichtman Research Group Thursday. The top six cable companies lost about 285,000 video subscribers, widening from a loss of 115,000 subscribers; satellite TV service’s lost subscriptions widened to 375,000 from 340,000; but the top phone providers’ losses narrowed to 50,000 from 325,000 (the fewest since Q3 2015). Internet-delivered services including Sling TV and DirecTV Now added 405,000 subscribers, up from 265,000 net adds in the year-ago quarter. The top pay-TV providers now have about 91.9 million subscribers -- with the top six cable companies having 47.8 million video subscribers, satellite TV services 31.1 million subscribers, the top phone companies 9.2 million subscribers and the top Internet-delivered pay-TV services 3.8 million subscribers. Since the industry’s peak, traditional services have lost about 7.2 million subscribers, while the top publicly reporting internet-delivered services gained about 3.8 million customers, said LRG Principal Bruce Leichtman. The internet-delivered category doesn’t include PlayStation Vue, Hulu with Live TV or YouTube TV, which don't publicly report subscribers.
Entities lobbying Capitol Hill and federal agencies on broadband infrastructure issues more than doubled in Q4 compared with the same period in 2016, disclosure filings released through our deadline Tuesday show. Overall lobbying spending by telecom companies and associated groups increased during Q4, though three of the top four carriers -- AT&T, T-Mobile and Verizon -- reported expenditures dropped or remained flat. Tech sector firms' lobbying priorities during the quarter included lawmakers' focus on extremist online content and legislation aimed at curbing online sex trafficking (see 1801230061). Partial figures on Q4 spending were available Monday (see 1801220057). Tech lobbying spending reached a recent high (see 1801230068).
Roku added 48 percent more “active” user accounts in Q3 than a year earlier, said CEO Anthony Wood Wednesday on the company’s first earnings call since it went public Sept. 28. “If Roku were a traditional cable company or a service operator, we would be the fourth largest in the country,” he said. “Streaming is mainstream, and a huge market. We believe every TV will one day run a streaming OS.” Momentum in licensing to TV makers made Roku the top U.S. streamer, “based on streaming hours,” said Wood. Streaming hours for Q3 were up 58 percent from a year earlier to 3.8 billion, said Chief Financial Officer Steve Louden. Q3 revenue jumped 40 percent to $124.8 million, as the operating loss narrowed to $7.9 million. Roku shares ended Thursday up 55 percent at $29.19.
AT&T remains confident it will close on Time Warner by year's end, despite word DOJ is considering challenging the deal, analysts said Thursday. That close could come by month's end, analyst David Barden of Bank of America emailed investors Thursday. The Wall Street Journal that day reported the agency is discussing possible settlement terms. BOA said it's standard for the agency to work along multiple fronts for merger reviews. BOA said new DOJ antitrust chief Makan Delrahim is positioning himself to have the last word on any conditions, and the company expects any conditions to be reasonable. It said the time Delrahim is taking has to do with coming up to speed on the takeover rather than with material issues. Wells Fargo's Jennifer Fritzsche emailed investors the issue might be more about Justice increasing leverage in negotiating conditions than a serious intent to block the deal, saying the DOJ would face an "uphill battle" in court trying to block the vertical merger. If the department does push back, that might indicate horizontal mergers -- like Sprint/T-Mobile -- might not fly with the administration, Wells Fargo said. DOJ didn't comment. AT&T said when the agency reviews any transaction, "it is common and expected for both sides to prepare for all possible scenarios. For over 40 years, vertical mergers like this one have always been approved because they benefit consumers without removing any competitors from the market. While we won't comment on our discussions with DOJ, we see no reason in the law or the facts why this transaction should be an exception." Time Warner closed down 3.8 percent to $94.70. BOA said AT&T Senior Executive Vice President-External and Legislative Affairs Bob Quinn indicated this week DOJ wouldn't likely approve consolidation of two national wireless carriers without creation of a fourth facilities-based player, since that would likely face political and career antitrust staff opposition. BOA said an MVNO-based cable provider also wouldn't fit that bill of a facilities-based operator. AT&T didn't comment on that.
CTA predicts 2017 holiday tech spending will be up 1 percent to $96.8 billion from 2016 vs. 3.8 percent in Q4 2016 and negative 1.8 percent in 2015. Steve Koenig, senior director-market research, told us Wednesday at the group's conference (see 1710110063) that "what makes robust tech spending growth challenging for 2017 is the comparison to a very solid 2016 season." Smartphone volume will be "mostly flat against a backdrop of lower prices," Koenig said. “We’re even seeing on an annual basis, not just holiday, very moderating growth” in screen devices, he said. Data mining will play a more prominent role, and consumers will see more targeted marketing, said Koenig. A much-requested gift will be smartphones (8 percent), and 128 million adult gift givers plan to buy communications devices including smartphones (27 percent).
Southeast Texas won't quickly recover after Tropical Storm Harvey damaged and flooded 911 facilities and utility infrastructure (see 1708290029 and 1708280049), emergency and utility officials said in interviews last week. Surging numbers of calls overwhelmed public service answering points (PSAPs) used to far fewer requests, said one official. Industry officials said providers are working together and continue to restore service and assist with relief. The FAA cleared drones to fly into the area.
The number of cellsites down due to Tropical Storm Harvey continues to decline, though other communications services are faring worse. According to the FCC's latest communications status report Thursday, 3.8 percent of the cellsites in the 55 directly affected Texas and Louisiana counties and parishes were down, compared with 4.2 percent on Wednesday (see 1708300054) and 4.7 percent on Tuesday (see 1708290029), and no county has more than 40 percent of cellsites out of service. It said at least 270,139 cable and wireline subscribers were without service, up from Wednesday's 267,426. It also said nine radio stations were down, up from five Wednesday, while the number of TV stations down was two, one fewer than on Wednesday. The agency said the number of public safety answering points down was seven, compared with 11 the previous day, and that none of the downed PSAPs is without a re-route. In a public notice Thursday, the agency said it would extend its disaster data collection to nine additional Texas counties at the request of the Federal Emergency Management Agency. Meanwhile CompTIA encouraged tech companies to make donations, which it said it would help double. AT&T said it would use 25 drones to inspect cell towers and determine network damage in areas of Southeast Texas not accessible to cars or trucks due to flooding. AT&T also said it would deploy two satellite cell on wheels in Beaumont, Texas, and stage 12 more in the area to support customers and first responders following Harvey's second landfall.
The FCC launched a notice of inquiry Thursday seeking comment on mid-band spectrum for 5G and other wireless broadband. Intel hailed the launch, but the Wireless ISP Association said the NOI is at best a mixed bag. It's expected to be on a fast track, industry officials said. A big fight is likely brewing between two rival proposals, one led by Mimosa and WISPA, through the Broadband Access Coalition, and a second by Intel and other major players (see 1707240061). FCC members also approved several other items unanimously (see 1708030026).