Requiring all non-geostationary satellite operators in Canada to provide complete coverage of the country as a condition for market access would mean fewer competing NGSO services available for Canadians. That was the argument raised by U.S. satellite operators in replies posted Friday by Innovation, Science and Economic Development (ISED) Canada as it looks at a rewrite of NGSO rules (see 1704240026). Boeing said there's broad agreement that ISED shouldn't limit the number of licensed systems, require third-party arbitration of coordination disputes or make foreign NGSOs complete international coordination before being authorized for Canada, but there's broad disagreement on coordination requirements and Canadian coverage and capacity requirements. ISED might want to impose conditions on Canadian-licensed NGSOs on direction and control of the systems, but there's no valid argument for concluding Canadians won't see satellite service without Canadian coverage and capacity reservation requirements, it said. O3b said some proposals, such as requiring foreign-licensed NGSOs coordinate with Canadian-licensed systems before getting access to the Canadian market, could create an imbalanced competitive playing field. It advocated that ISED adopt in-line interference rules similar to the FCC's, with consequences such as spectrum splitting for two operators unable to coordinate as a means of encouraging coordination in good faith. ViaSat said requiring foreign-licensed NGSOs to complete coordination with Canadian satellite operators gives those Canadian operators the incentive and opportunity "to control the timing and pace of market entry by their competitors." ViaSat backed a proposal by a coalition of Canadian satellite operators that coordination be required, but requests for Canadian landing rights not be denied or delayed if a foreign-licensed operator has ITU date priority or is facing delays in reaching a timely coordination arrangement. OneWeb said ISED's proposed milestone requirement, that large NGSO systems have a third of their constellations up by year six after being licensed and fully deployed by year nine, would result in spectrum warehousing and give a milestone extension to already authorized NGSO systems.
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."