Tales of the Sausage Factory

Assessing the 700 MHz Order Part II: “C” Does Not stand For “Crap;” Why the Wireless Carterfone Condition Is A Big Win.

Few things in the last few days have generated more discussion and overall pessimism in the Order than the C Block “wireless Carterfone” or “network attachment” conditions. “A tease,” says Art Brodsky. “Crippled by loopholes,” opines Susan Crawford.

“Not so fast!” Says yr hmbl obdnt blogger. In point of fact, there is a a hell of a lot here to like in the C Block conditions. Not just for trying to get actual devices attached, but in terms of FCC precedent and broader spectrum policy. This is an “Eyes on the Prize” moment, similar to the preliminary decisions that culminated in Brown v. Board of Education. We did not win the grand prize, but we got a lot good precedent for future spectrum reform.

Further, as I explain below, I do not think the conditions the FCC imposed here are meaningless. To the contrary, I think the rules are about as aggressive as possible to draft (as I worked hard with Commissioner Adelstein and his staff to think of anything I could possibly add to them). But at the end of the day, what matters is the political will. If the next FCC (which will be the FCC that enforces this) wants to give these license conditions meaning, it has the tools to do so. If a future FCC wants to make this meaningless, then there is nothing we can do no matter how well we draft things.

And I will add that if anyone has some better ideas on what to put in as rules, they should certainly file Petitions for Reconsideration

My analysis of why the C Block conditions do matter below . . . .

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Tales of the Sausage Factory

AT&T Net Neutrality Condition: Win, Lose or Draw?

Unsurprisingly, in an area as complex as this, opinion has split on what the merger conditions mean. Some, like Tim Karr and Columbia Law Professor Tim Wu, and Matt Stoller hail the conditions as an important victory. Others, such as Cardozo Law Professor and ICANN Director Susan Crawford, Jeff Pulver, and Dave Burstein think AT&T has cleverly played us for dupes by giving us conditions with loopholes that render the conditions meaningless. While others, like Dave Isenberg, strike a middle ground. Others, pointing out that the conditions only last two years,

What do I think? As I observed in July, when we got got some conditions out of the Adelphia transaction, evaluating wether you won or not in opposing a merger is a tricky business. But I reject the idea we got taken for a ride. To the contrary, anybody who thought this merger was going to provide the answer to the net neutrality issue, or eliminate the need for national legislation, does ot understand what was going on or what we were trying to accomplish.

And no, this doesn’t make a bad merger good. I certainly would have preferred seeing the FCC reject the merger. But given broad hints from Dingell that he never wanted the Ds to go that far, and given the fact that McDowell could have decided to come off the bench in June if the merger was still pending (since the Ds could not get a majority to vote to refer the matter to an Admin Law Judge), I don’t think a rejection was realistic to expect.

More detailed analysis below.

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Tales of the Sausage Factory

FCC Bidding Credits and Digital Inclusion

For the forseeable future, we’re stuck with spectrum auctions, so we may as well try to get them to work as well as possible. Contrary to what some folks argue, I don’t think that means just jacking up one-time revenue to the government. It means trying to get licenses to folks who don’t usually get ’em (like women-owned businesses, minority-owned businesses, and small businesses generally), trying to get services deployed to underserved communities, and trying to foster real competition.

So last week, MAP submitted a lengthy set of comments (including a 30-page econ analysis from my economist friend Greg Rose) on reforming the FCC’s designated entity “bidding credit” for the upcomming AWS auction.

What does all this mean, and why should the guy who says “spectrum auctions are the crack cocaine of public policy” care? See below . . .

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Tales of the Sausage Factory

Low Power Radio Order

On the decidedly low-tech side, but still a very important part of my work, is helping the Low Power FM community (particularly the good folks at Prometheus Radio Project) deal with the FCC.

One of the things that has kept me busy this month has been a final push to get good stuff out before Powell left. It finally happened at 7:30 p.m. the night he left, with the release of this Order.

This is actually an interesting story that, among other things, pits local community radio organizers aganst some folks in Twin Falls, ID that are either exploiting loopholes in the rules or violating federal law to set up a nation-wide evangelical Christian radio network.

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