Satellite broadband operators and the Competitive Carriers Association continue to joust over a satellite push for reconsideration of spectrum frontiers earth station deployment restrictions in the 27.5-28.35 GHz band. CCA objections come from "a fundamental misunderstanding as to the nature of satellite earth station deployment in this band" and don't recognize how extensively satellite is using the 28 GHz band already to provide broadband service, as well as the ability of satellite and terrestrial wireless to coexist, the satellite operators said in a filing Friday in docket 14-177. That satellite use of the band would be only "at discrete and identifiable locations, not ubiquitous deployment at customers’ premises" should satisfy many CCA concerns, the operators said. Boeing, EchoStar, Inmarsat, Intelsat, O3b, SES and OneWeb said the limited deployment of local multipoint distribution service, with 58 percent of the LMDS license areas not being issued licenses, particularly in rural areas, doesn't back up CCA arguments competitive carriers are using the spectrum in rural and regional service footprints. The satellite broadband proposals "will devalue and interfere with rural broadband providers’ mobile service to consumers in hard to serve parts of the country," CCA emailed us. It said issues like the unreliability of satellite service due to atmospheric conditions need to be considered "before granting more rights to satellite operators that could substantially interfere with more reliable terrestrial-based services. The FCC must consider the interference potential to reliable services before encumbering operators that have relied upon FCC rules to build out networks. This is sort of like changing the ‘rules of the game’ during halftime; it is not a good idea.”
Most municipal broadband networks probably back near-total forbearance of regulation on small ISPs since they operate "in an arena in which their customers can hold them directly accountable," Chris Mitchell, Institute for Local Self-Reliance Director-Community Broadband Networks, emailed us Friday. Nineteen municipal ISPs cheering the net neutrality draft NPRM up for a vote at Thursday's FCC commissioners' meeting are "not representative entirely" since while local governments generally abhor federal or state government directives on how to operate, those local networks were built to avoid the harms that have come from large providers "and the lack of market discipline or regulation that allows them to harm communities," he said. "Most of these networks are from smaller, more conservative rural communities that are particularly opposed to federal action in any arena." In a letter to be filed in docket 17-108, the 19 signatories to the American Cable Association-submitted document said that "returning to light-touch regulation of broadband service" will incentivize investments in their networks and future service deployments. They said that since the 2015 imposition of Communications Act Title II regulation on common carriers, their spending on lawyers and consultants to comply with the "complex and ... difficult to fathom" rules has increased and they often delay introductions of new services or features out of caution about facing a complaint or enforcement action. Muni ISP signatories included Monroe, Georgia; Bagley (Minnesota) Public Utilities; Oberlin (Ohio) Cable Co-Op and Auburn (Indiana) Essential Services. Chairman Ajit Pai in a statement Friday said that "the fact that ISPs lacking any profit motive agree that eliminating Title II regulation will benefit consumers and promote innovation and investment is a powerful endorsement of reversing the FCC’s 2015 Title II Order.” Mitchell said he questioned how many of the 19 can point to a direct harm from Title II regulation. The FCC is going full steam ahead toward Thursday's vote (see 1705120052).
MVPDs have numerous concerns about Sinclair's proposed $6.6 billion buy of Tribune, but not substantial confidence the FCC's review will fix those concerns. Meanwhile, public interest groups and left-leaning political organizations also could bring their own objections to the proposed deal, though they likely could see even less success, experts tell us.
The solution to fake news is for mainstream media outlets to do a better job convincing the public of their utility and the thoroughness of their content, said Commissioner Mike O'Rielly in a speech on media content regulation at a Media Institute luncheon Thursday. Steps like hiring fact checkers and use of algorithms intended to give lower priority to fake online news run the risk of limiting discourse or catching up legitimate news coverage in the net, he said. Some media outlets and social networking organizations announced plans in recent months to tackle fake news (see 1701040025).
Ongoing Electronic Comment Filing System woes at the FCC bothered all industry lawyers we queried, with many filings still unavailable and at times ECFS not working, as it has at times throughout the week (see 1705080042 and 1705100062).
The skinny bundle in the U.S. "is a fiction" for now, though an $8-$12 monthly package will be offered at some point, akin to what's available in other markets internationally, Discovery Communications CEO David Zaslav said in an analyst call Tuesday. So-called skinny bundle offerings in the U.S., with prices closer to $40 monthly, are "overstuffed turkeys." He said subscription VOD offerings like Netflix and Amazon Prime are effective, but "we as an industry need to complement that with a quality offering ... that's a true skinny bundle in the spirit of what's working around the world, and I think that'll happen." Discovery said Q1 revenue was $1.6 billion, up 3 percent due to gains in global distribution sales and progress in expanding digital and direct-to-consumer businesses. Zaslav said since the start of the year, the company has expanded its Amazon SVOD channels partnership and Eurosport Player streaming service and entered into a number of new digital partnerships, including creation of a streaming over-the-top service in Europe.
A draft rulemaking notice on earth stations in motion (ESIM) set to be voted on at next week's FCC commissioners' meeting shouldn't face any particular pushback or raise notable controversy and likely will garner at most suggested tweaks from industry operators, a satellite industry insider told us. With growth of satellite applications like in-flight connectivity and maritime services, the proposed rule changes NPRM are aimed at a cleanup of the Part 25 rules governing satellite communications, the insider said.
Comcast and Charter Communications' testing some wireless collaboration is likely unwelcome news in the wireless industry, experts told us. The team-up could open the door to potentially a fifth facilities-based wireless carrier joining the market -- either cable ISPs collectively, or by providing wholesale service to a smaller wireless operator, said technology consultant Ira Brodsky of Datacomm Research. In a note to investors, New Street Research analyst Jonathan Chaplin said, "A new entrant with deep pockets and ... a near national fiber footprint is obviously not good for wireless carriers in an already competitive market."
Sinclair and Tribune overlap in 14 markets, but Sinclair is confident its planned $6.6 billion deal -- $3.9 billion purchase plus assumption of $2.7 billion in debt -- won't require any station sales since the overlaps have no impact on competition, Sinclair CEO Christopher Ripley said. Station swaps, on the other hand, "are high on the list of priorities," he said in an analyst call after Sinclair/Tribune was announced Monday. "Swaps are definitely on the table."
Satellite operators and WTA suggested a variety of changes to rules the FCC adopted between 2001 and 2004, in filings (see here, here and here) posted Friday in docket 16-251. The comments deadline in the Regulatory Flexibility Act rules review is May 15. Intelsat recommended eliminating Section 25.170's requirement for satellite operators to annually report satellites and spectrum unavailable for service, contact information for interference resolution and construction process and expected launch dates of authorized replacement satellites. It said the Section 25 requirement is largely redundant given other filings and notices, and requires something of satellite operators that terrestrial operators don't need to do. It also recommended modification of Section 25.119 rules requiring prior approval of pro forma transfers of control of non-common carrier satellite and earth station licenses, calling it "illogical" non-common carrier licenses holders "must undergo the labor- and time-intensive process of submitting an application for FCC approval" even though the agency recognizes pro forma transfer applications don't raise public interest issues. It recommended discontinuation of Form Schedule S, which contains technical information regarding proposed space station operations -- information that could be provided in spreadsheets and narratives "without having to use the burdensome Schedule S software." EchoStar and its Hughes Network Systems listed six Part 25 rules and two Part 2 rules they said should be eliminated or revised as "duplicative, unduly burdensome and no longer in the public interest." They include 25.111(e), requiring submission of a paper copy of an application to the International Bureau; 25.112 (a)(3), (b), not allowing applications for satellite use of spectrum prior to international allocations for such use; and 25.114, requiring separate space and earth station applications operating in the same network. WTA suggested eliminating or revising several Section 54 reporting requirements. One regulation it singled out for deleting was the Section 54.305 rule that provides high-cost support to a carrier acquiring exchanges from an unaffiliated carrier, with WTA saying it has created "orphan" exchanges that require separate accounting and come with high costs while getting little USF support. WTA also said Form 477 filing requirements should be annually, calling the current, twice-a-year requirement "very time consuming and expensive" for RLECs.