A Bad Bit of Timing For RCN — Public Comment Opens On Merger Day After Blocking Goes Public.

Welcome back everyone to the new and improved Wetmachine.com! I beg everyone’s indulgence while I figure out our new interface.

Every now and then, the universe hands you some lousy timing. Case in point for RCN. Back in March, when RCN announced its pending acquisition by Yankee Group, no one gave it a second thought. It all looked very uncontroversial and part of the natural consolidation for the few survivors of the debacle we call “intermodal competition.” But in what RCN can only view as the worst possible timing, the FCC put the deal out for public comment right after several stories that RCN had settled a class action for blocking p2p applications in a manner reminiscent of Comcast. (RCN “vigorously denies all wrongdoing,” but it is unclear whether they deny blocking or whether they deny they did anything wrong by blocking.)

Why does this matter? Because RCN has just become the prime opportunity for the FCC to answer the question “What’s our authority after the Comcast/BitTorrent case?

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Why Don’t Broadcasters Become “Spectrum Innovators?” Because They Like Being Broadcasters.

Can’t help but take a brief break from the Net Neutrality craziness to be mildly amused at Adam Thierer over at Tech Liberation Front. We have an increasing number of reports that Blair Levin wants to bribe broadcasters to get off their spectrum as part of the national broadband plan. Adam is very excited by this and, of course, brings up the usual Libertarian argument that because property solves all problems, we should just make the broadcast licenses property of the broadcasters and let the endless innovation begin.

The problem with argument is that broadcasters could already do this. Under 47 USC 336(b), broadcasters can use their digital spectrum to provide “ancillary and supplementary services.” In a series of orders, the FCC has said that as long as full-power broadcasters provide one free over the air digital channel, they can do whatever they want with the remaining spectrum — including lease it out in the secondary markets to someone else. Under the statute, broadcasters need to pay a fee for any such ancillary services that would be the functional equivalent of what the broadcasters would have paid for the spectrum at auction (47 USC 336(e)), which the FCC has fixed at 5% of any annual revenue from the ancillary services.

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My Weekly Five Minutes of Fame — I Explain the National Broadband Plan In Five Minutes.

We are starting a new feature at Public Knowledge called “Five Minutes With Harold Feld,” wherein I will take insanely boring complicated wonkery and make it mildly less boring. This week, I explain the National Broadband Plan and the comments PK filed last night.

Stay tuned . . . .

Matt Stoller Interviews Me Over On OpenLeft

As anyone reading the sidebar can tell, I’m a big fan of the folks over at OpenLeft. So I was extremely happy when Matt Stoller asked to interview me on what the November 4 white spaces vote at the FCC means for the future of media and telecom policy.

You can find the interviews here:

Day 1: Broadband and Breaking Up Telecom/Cable/Broadcast Monopolies.

Day 2: Real Use Anywhere ‘Skype-style’ Phone In The Offing.

I have no idea if the Obama people — or anyone else for that matter — agree with me on this stuff. The views expressed in the interviews are my own, just like any other time I talk to the press. In particular, I am pretty sure no one else agrees that our priority should be to “crush monopoly incumbents, drive them before us, and hear the lamentations of their shareholders.” “have a strong national broadband policy that includes federally funded fiber-to-the-home and greater access to federal spectrum for intelligent devices.”

But I hope we can persuade them to agree with me.

Stay tuned . . . .

Quick Reaction to AT&T-BellSouth Merger

Not really a surprise. The government has made clear it will accept the vicious cycle of “the previous merger you approved means I now have to merge.”

Sadly, because the regulators till think of these primarily as monopoly voice markets, and long ago gave up hope the Bells will compete with each other, they don’t worry about the increased size of the national footprint as an indicator of market power in any of the relevant service markets. If anything, it’s regarded as a plus because under the logic of “convergence,” this makes AT&T a better video competitior to Comcast, TW and other incumbent cable companies, while doing no “damage” in voice markets.

The complexity of interelated markets, the nature of market power on “upstream” internet content and service providers, and question of what the mature market looks like aludes them.

Oddly, I am at a conference on municipal broadband right now. Soon, cities may be the only competitors. I hope they will realize that they need interconnection and net neutrality to make a real go of it. Or so I will try to persuade them tomorrow.

Quick tag to Ensign Bill

For those who care about public access (or PEG channels). The bill keeps these (up to four channels, rather than a broadband set aside as some folks have negotiated for), and tells the state authority to delegate some local government entity to have authority to ask for the channels (you only get ’em if your local government asks for ’em). The bill also keeps a franchise fee of up to 5%, but the fee must be cost based rather than negotiate (i.e., the local government has to show how much it spends on digging up the streets and associated public rights of way issues).

Jim Baller, all around smart guy and lawyer extrodinaire for municipalities and municipal networks, has his take on the anti-muni provision of the Ensign Bill here.

Stay tuned . . .

A Win in Florida

According to my friends at Free Press, the forces of municipal broadband won a major victory in Florida. Following a nasty legislative fight in the heart of Bell South territory, the Republican dominated legislature saw fit to impose only one condition on municipal broadband — annual reports.

Score since PA: Public interest- 3, Incumbents-0, Tie-1 (WV, where positive legislation was neutralized)

Stay tuned . . . .

Fileswapping: A coda

just a brief coda on my predictions for file swapping. According to The Washington Post, fileswapping is up again in October and November after declining steadily from June to September. I note that coincides somewhat with the college year, if new students get oriented in August/Sept., get a taste of broadband, and start fileswapping. that last is just speculatiuon on my part.

Stay tuned . . . .

where does the Wetmachine crowd go for breaking news?

With Saddams capture last night, I’d like to know the implications for trial. If we turn him over to an international court for, say, gasing Kurdish forces, won’t he want to tell the court where he got his intelligence reports? Could that lead to a subpoena of previous US administrations? What happens at trial and in world opinion if he’s tried by us or by a US-controlled Iraqi “government”.

Where can one go to get the poop? Google isn’t current enough. CBS, ABC, and NBC (GE and Microsoft, my two least favorite corporations) are covering the story, but say nothing of relevence about trial. NPR has an audio report that hasn’t been transcribed yet, so I can’t search for the word “trial”. Slashdot and kuro5hin aren’t on to this yet. (I wonder if I should check Urban Legends.)

My regional newspaper has some coverage (go print media!), but the New York Times and the Washington Post want me to fill out forms before they tell me anything. (And besides, the stuff about trial at the NYT isn’t transcribed from audio yet. Odd, for a newspaper.)

The day after the last election, and on the moring of 9/11, I was at work and had the resources of a hundred well-informed people. While getting paid a lot of money to come up with technology to change the world, we had each other and the best broadband money could buy to get info throughout the day. Now we’re all isolated in our homes. Where do you go for the real deal?