Tales of the Sausage Factory

Phone Industry To The Poor: “No Privacy For You!”

Back in June, the FCC released a major Order on the Lifeline program. Lifeline, for those not familiar with it by that name, is the federal program started in the Reagan era to make sure poor people could have basic phone service by providing them with a federal subsidy. Congress enshrined Lifeline (along with subsidy programs for rural areas) in 1996 as Section 254 of the Communications Act. While most of the item dealt with a proposal to expand Lifeline to broadband, a portion of the Order dealt with the traditional FCC Lifeline program.

As a result, the wireless industry trade association, CTIA, has asked the FCC to declare that poor people applying for Lifeline have no enforceable privacy protections when they provide things like their social security number, home address, full name, date of birth, and anything else an identity thief would need to make your life miserable. Meanwhile, US Telecom Association, the trade association for landline carriers, has actually sued the FCC for the right to behave utterly irresponsibly with any information poor people turn over about themselves — including the right to sell that information to 3rd parties.

 

Not that the wireless carriers would ever want to do anything like that, of course! As CTIA, USTA, and all their members constantly assure us, protecting customer privacy is a number one priority. Unless, of course, they’re running some secret experiments on tracking without notifying customers that accidentally expose customer information to third parties. Oh, and it might take longer than promised to actually let you opt out once you discover it. And in our lawsuit against the FCC’s Net Neutrality rules, they explicitly cite the inability to use customer information for marketing, the inability to sell this information to third parties, and the requirement to protect this information generally as one of the biggest burdens of classifying broadband as Title II. But other than that, there is no reason to think that CTIA’s members or USTA’s members would fail to respect and protect your privacy.

 

So how did the Lifeline Reform Order which most people assumed was all about expanding Lifeline to broadband became the vehicle for the phone industry to tell poor people they have no privacy protections when they apply for a federal aid program? I explain below . . .

Read More »

Posted in Life In The Sausage Factory, Series of Tubes, Tales of the Sausage Factory | Also tagged , , , , , | Comments closed

Tales of the Sausage Factory

My Insanely Long Field Guide To Cisco’s War On The TV White Spaces

Will Cisco’s war against the TV white spaces tank incentive auctions? No doubt this question comes as a surprise to the vast majority of people unaware Cisco was running a war against TV white spaces (TVWS). True, Cisco has mostly tried to stay behind the scenes. But as we get closer to the Super Committee deadline, which include negotiations for incentive auction rules that would let TVWS survive, Cisco has become increasingly willing to go public with its anti-TVWS lobbying efforts.

This blog post on the Cisco blog, followed by this letter from the High Tech Spectrum Coalition (HTSC), finally say publicly what Cisco and its allies have been saying privately since debate over spectrum legislation began last January: “Death to the TV White Spaces.” Instead, argues Cisco, open up a new block of 5 GHz spectrum to “replace” the white spaces. But with spectrum legislation in trouble – as evidenced by CTIA’s non-stop radio advertising here in D.C. and it’s recent ‘we love unlicensed, can’t we all get along?’ letter to the Super Committee – Cisco’s continued opposition to white spaces threatens to tank any hope of getting incentive auctions passed either in the Super Committee or elsewhere.

Incentive auctions, while popular as a revenue generator, were always a tough sell because of broadcaster passive/aggressive opposition. Adding D Block reallocation made it even more difficult. Cisco’s war on the TVWS threatens to be the final straw that makes this lift just too heavy. It splits a tech community that would otherwise wholly support incentive auctions, while simultaneously pissing off key members of Congress who helped get TVWS done in the first place.

So the time has come for Cisco, CTIA, and others who really want incentive auctions, to ask themselves whether it’s worth it to risk incentive auctions just so that Cisco can keep Microsoft, Google/Motorola, Dell, and others from bringing a competing product to market. The Hutchison/Rockefeller Bill, S.911, was a compromise that kept spectrum for TVWS, gave Cisco the 5 GHz block it wants, and made sure that a minimum threshold of 84 MHz would be auctioned before allocating any recovered spectrum to replace white spaces lost by auction or repacking. While not great from my perspective as a white spaces supporter (and I’d still like to see it tweaked some), it was at least a livable compromise. Cisco’s anti-TVWS campaign already backfired once, with the Republican discussion draft to require auction for all unlicensed spectrum. Will Cisco and CTIA fail to learn just how easy it would be for them to blow this for everyone? Or will they settle for the compromise that got a bipartisan bill out of the Commerce Committee?

Why Cisco has been gunning for the TVWS, the quiet little war of the last ten months, and how to get out of this quagmire before it’s too late, below. . . .

Read More »

Posted in Life In The Sausage Factory, Spectrum, Tales of the Sausage Factory | Also tagged , , , , , , , , , , | 7 Comments (Comments closed)

Tales of the Sausage Factory

Why The White House and CTIA Don’t Agree On Incentive Auction Revenue, And Why I Think Both May Be Wrong.

The White House budget proposed last week contains an estimate of about $28 billion from auctioning federal spectrum and giving the FCC authority to conduct incentive auctions.  By contrast, the CTIA – The Wireless industry Association — and the Consumer Electronic Association (CEA) have published a study showing that the FCC could raise $33 bn from an incentive auction of the broadcast bands alone. So what gives?

The short answer is that spectrum auctions are extremely hard to predict, and incentive auctions are even harder to predict because we’ve never done one before. The longer answer is that because the White House is banking on the revenue as part of the budget process with real world consequences, they have therefore hedged against uncertainty by including an easier to estimate spectrum auction. CTIA/CEA, have written an advocacy piece. As with all such pieces, it tends to accent the positive. Unfortunately, the Report fails to address some rather pivotal issues, a factor that renders it of rather limited utility for resolving what I consider the most critical question no one has answered: will enough broadcasters participate in a voluntary auction to make it happen at all. It is on this point in particular that I remain profoundly skeptical.

Fair warning, as with all spectrum policy posts, this one tends to run pretty long. Still, I’m hoping the prospect of all that money  will rivet folks as I unpack the “known unknowns,” the “unknown unknowns,” and why I raise a skeptical eyebrow over the CTIA/CEA estimate below .  .  .  .

UPDATE: As I’ve explained here, I’ve edited this article considerably to take out some unwarranted snark on my part against CTIA/CEA.

Read More »

Posted in Spectrum, Tales of the Sausage Factory | Also tagged , , , , , , , | 2 Comments (Comments closed)

Tales of the Sausage Factory

Republicans Finally Make FCC Picks. McDowell and Baker to Take R Slots. Now Can The Senate Please Get Everyone Confirmed So We Can Get To Work.

At long last, it looks like the Senate Republicans got their act together enough to settle on two FCC candidates: Current Republican FCC Commissioner Robert McDowell and former NTIA Administrator Meredith Atwell Baker. While I expect a fair number of policy fights, I also expect to see this group weighing matters fairly and searching for common ground.

I’m hopeful this can clear the Senate before July 4 recess. The FCC has a pretty big agenda, starting with the National Broadband Plan (yes, February 2009 may seem far away, but not for this), continuing through finishing up on white spaces and wireless microphones, FCC Reform, ownership, network neutrality, etc., etc. Be nice if the Senate also confirmed Larry Strickling for NTIA. Finally, if we really want to get things moving, the Senate Agriculture Committee should schedule a hearing for Adelstein’s appointment to head up the Rural Utility Service now (they don’t have to wait for him to be off the FCC to have a hearing on his nomination to RUS) so he can be confirmed in a group with everyone else.

A bit more on Baker and McDowell below . . .

Read More »

Posted in Life In The Sausage Factory, Tales of the Sausage Factory | Also tagged , , , , , , , , | Comments closed

Tales of the Sausage Factory

Farewell to Commissioner Deborah Tate

As I observed back awhile ago when describing possible scenarios for the FCC, Commissioner Deborah Tate would need to depart when the 110th Congress expired and the 111th Congress convened at Noon on January 3, 2009. So, at the FCC’s pro forma meeting on December 30, Commissioner Tate stepped down and made her farewell address. Despite the rather tense atmosphere that often prevails on the 8th Floor of the FCC these day, her fellow Commissioners used most of the meeting time to say many nice things in appreciation of her tenure.

Allow me to add my own appreciation for Commissioner Tate’s service. This may come as a surprise to some, given that I disagreed with Tate a fair amount on most matters of substance. As others have noted, Tate voted along fairly standard Republican lines — generally shying away from regulation of “the market” despite a sincere concern about consumer welfare. (I should add that despite her much publicized comments about the dangers of Worlds of Warcraft, her support for strong digital right management and urging ISPs do more to block content potentially harmful to minors, Tate still generally followed a deregulatory line in simply urging industry to voluntarily do more and raising this in the context of voting against the Comcast/Bittorrent Order).

But let me tell a little story below which illustrates why Commissioner Tate deserves a respectful farewell even from staunch progressives such as myself.

More below . . . .

Read More »

Posted in Life In The Sausage Factory, Tales of the Sausage Factory | Also tagged , , , , , , , , , , | Comments closed

Tales of the Sausage Factory

White Spaces and the CTIA Game Changer

The idea of auctioning the broadcast white spaces, rather than opening them for unlicensed use, is not new. It started out as an NAB “poison pill” back in 2005, when we looked like we might be making progress on getting a pro-white spaces amendment in the DTV transition bill that ultimately became the Digital Tranisition Act of 2005. When the FCC reinvigorated the proceeding in 2006, the NAB managed to get the FCC to put the question of licensed v. unlicensed in the Further Notice. But the NAB doesn’t want any neighbors, either licensed or unlicensed, and has focused its efforts until now on trying to kill the whole idea rather than on trying to promote licensing and auctions rather than unlicensed.

But the idea of licensing the white spaces for cellular or backhaul has gained new life recently, particularly after the 700 MHz auction. Both Verizon’s Steven Zipperstein and analyst Coleman Bazelon recommended this in their testimony at the House Telecom Subcommitte hearing on the 700 MHz auction. That comes on top of a serious filing by CTIA on the benefits of auctioning some of the white space and leaving a smidge so that unlicensed technologies can continue to develop.

We’ve now gone from NAB poison pill to serious issue. The proposal has not yet gained traction, but it does not do to underestimate CTIA and its members because, particularly after the 700 MHz auction, a number of its members really need that spectrum. This has the potential to change the game radically, including shifting alliances as the threat becomes more credible.

Analysis below….

Read More »

Posted in Spectrum, Tales of the Sausage Factory | Also tagged , , , , , , , , , , | 3 Comments (Comments closed)

Tales of the Sausage Factory

Open Access Gains Another Convert, AT&T Denies Poisition Change

A brief update on my recent post that AT&T recently conceded it might consider bidding on an open access license. Unsurprisingly, Frontline Wireless — the party pushing for the “E Block” public safety/open access network — filed a copy with the Commission stating that this proves that an E Block auction would attract bidders and that the business model is workable. In response, according to today’s (6/29) Communications Daily an AT&T spokesperson said: “Our position has not changed. As we’ve stated on the record at the FCC, mandated ‘open access’ conditions on licenses in the 700 MHz band should be rejected. We need to see the specific rules the FCC adopts for auction before determining our level of participation.”

The carefull reader will note that these statements are not inconsistent. Of course AT&T would prefer not to have open access, and — at the drop of a hat — will explain why open access is an unworkable awful idea and you should ignore all the evidence from Europe or from the U.S. until we abolished open access in 2005. But there is a huge difference between “we hate open access and think it’s a bad idea” and “we absolutely refuse to bid on a license with an open access condition and nobody else with any money would bid either.” Given that the most potent argument against open access from a political perspective is “don’t mess with the revenue” (as evidenced by the recent Op Ed in the Washington Post by two CTIA lobbyists wearing their “think tank” hats), proof that folks other than Frontline will even show up to bid (and folks with deep pockets at that) on an open access license is rather significant.

Meanwhile, open access for the 700 MHz auction continues to attract new supporters from different sectors of the industry. Northop Grumman, rather a heavy-weight in the equipment manufacture and public saftey/defense contracting world, filed this document supporting open access and explaining that yes, you really can construct a secure public safety network that shares spectrum with an open access commercial network. So much for “it will never work, it’s too hard, lets stick to what we’ve always done.”

In addition, the Frontline cover letter on the submission that introduced the “Well Connected” post with the AT&T interview stated that Citibank had made a presentation to the Commission “last week” explaining that open access is a workable business model. Annoyingly, I can find no record of this presentation in the record for Docket 06-150, but I may just be missing it (it is a pretty big docket). (UPDATE: My thanks to Susan Crawford for pointing me to the appropriate ex parte filing.)

But assuming that Frontline accurately describes a presentation that took place, we now have:

1) A statement by a major financial investor that open access is an attractive and workable model from a business perspective;

2) A statement by a major equipment manufacturer and network operator that commercial open access — even in the more complicated universe of a dual use public safety network — is technologically feasible;

3) A statement by a major incumbent that it would at least “look at” bidding on an open access license if the Commission adopts such a rule;

4) Statements by wireless equipment and wireless application providers that there is a desperate need for open access in the wireless world and in the provision of broadband services generally;

5) Over 250,000 individuals saying the status quo sucks and we want open networks and new providers.

On the other side, we have the entire incumbent industry and its usual cheer leading section chanting that everything is vibrantly competitive, we live in the best of all possible worlds, everything works perfectly and competitively, and even thinking “open access” too loudly will scare away bidders and reduce revenue to a fraction of the expected $10-15 billion. And besides, open access can’t possibly work either on the business side or the technical side.

And all the while, the clock ticks away, as everyone scrambles to get this done before the end of the summer.

Stay tuned . . . .

Posted in Spectrum, Tales of the Sausage Factory | Also tagged , , , , , , , , | Comments closed

Tales of the Sausage Factory

Oh yeah, the Skype Petition . . .

In addition to my pleas to save the 700 MHz auction, save postal rates, save internet radio, save the last dance, etc., etc., I almost completely forgot about supporting the Skype Petition. Comments are due Monday, April 30. You can file comments by going to the FCC’s website and filling out the fields. It’s pretty self explanatory except the docket number, which is RM-11361. Just click here.

Oh yeah, I should probably explain a bit about what this is and why you should care. For that, see below . . . . .

Read More »

Posted in Spectrum, Tales of the Sausage Factory | Also tagged , , , , , , , | Comments closed

Tales of the Sausage Factory

My speech in SF

Sorry to go dark so long. I was on the West Coast pretty much all last week, then came home in time for the Jewish New Year. Lots of stuff to blog about and will try to do updates over the next week or so.

Last week, I was at the amzing and cool conference put together by Esme Vos of muniwireless.com. Esme is proof of why the Internet is such a wonderful tool. With nothing more than interest and dedication two years ago, she created the muniwireless website which is now a central news source and repository of information about municipal wifi.

I’ve attached below the speech I gave at the conference last week. It’s 6 pages, so it’s kinda long.

Stay tuned . . . .

Read More »

Posted in General, Tales of the Sausage Factory | Also tagged , , , , , | Comments closed
  • Connect With Us

    Follow Wetmachine on Twitter!

Username
Password

If you do not have an account: Register