The FCC’s broadband policy continues to actively encourage investment in broadband and innovation, said Chairman Julius Genachowski at the Future of the City forum late Wednesday. Staffs at the FCC are running a consultation process with many broadband stakeholders on an ongoing basis, he said in an interview after his speech. The Comcast decision is something that everyone’s interested in so it’s important to consult with stakeholders, he said, regarding FCC’s closed-door meetings on broadband rules (CD June 23 p1).

Viacom said it will appeal a federal judge’s order granting Google’s motion for summary judgment in their long-running YouTube copyright litigation. “We believe that the ruling by the lower court is fundamentally flawed and contrary to the language of the Digital Millennium Copyright Act, the intent of Congress and the views of the Supreme Court expressed in its most recent decisions,” Viacom said. “After years of delay, this decision gives us the opportunity to have the Appellate Court address these critical issues on an accelerated basis.” Google called the judge’s ruling a win.

Free Press took its objections to closed-door meetings at the FCC to discuss key broadband issues (CD June 17 p1) to the readers of The Washington Post, running a full-page ad in the paper Wednesday. The group has been generally supportive of FCC Chairman Julius Genachowski in the past. Public interest group officials told us they are unhappy they are not at the table as a possible deal is discussed at the agency.

The FCC denied the Qwest Phoenix forbearance petition after applying a market power analysis that didn’t find sufficient facilities-based competition for retail mass market services in the Phoenix area “to meet Section 10 criteria for unbundled network element forbearance.” The order is accompanied by a public notice seeking comment on using the same market power standard for outstanding remand forbearance orders and future forbearance requests. Statements from Commissioners Meredith Baker and Robert McDowell supported the decision, but cautioned against setting the bar too high for future forbearance petitions, including the Verizon 6 and Qwest 4 remands.

The FCC, as expected, approved the transfer of spectrum licenses covering 79 markets in 18 states from Verizon Wireless to AT&T, fulfilling a condition imposed on Verizon by regulators when it acquired Alltel in 2008. Commissioner Michael Copps said the order highlights the “continuing unacceptable state” of telecom service in most of Indian country.

Wireless Strategies and the FCC Wireless Bureau need to answer several questions on the effect of distributed radiating elements on satellite communications before the agency moves forward on a rulemaking on the subject, the Satellite Industry Association said in a filing on WSI’s proposal on DREs. WSI proposed deploying DREs as a way to increase reuse of microwave frequencies in 2007. The proposal saw new light recently when it was referenced in the FCC’s National Broadband Plan. The bureau is preparing to issue a notice of proposed rulemaking to make changes to part 101 of the FCC’s rules which govern fixed microwave services and has sought some industry input before moving forward, the SIA said in a filing. The association has met with the International Bureau and the Office of the Engineering and Technology in recent months to voice its concerns on the issue.

Public interest groups on both sides of the net neutrality and broadband reclassification debates said the FCC should release full details of closed-door meetings that started Monday at the FCC with various industry players to discuss a possible compromise on how to give the FCC authority over broadband, without changing how carriers are regulated. While the first meeting was aimed at possibly providing advice to Congress on legislation, many key lawmakers also had not been told beforehand, Hill sources said.

USTelecom President Walter McCormick sharply criticized the FCC Tuesday for proposing net neutrality rules that could potentially keep carriers from passing the cost of broadband to anyone but subscribers. McCormick, who keynoted at the NextGenWeb conference in Washington, also warned that driving down prices won’t be enough on its own to lead to universal adoption, and expressed deep concern about the broadband reclassification inquiry the commission launched last week.

The FCC should require Comcast to offer wholesale broadband access service on a nondiscriminatory basis to at least four independent ISPs as a condition of approving Comcast’s deal to buy control of NBC Universal, EarthLink said. The condition could be modeled on a similar one attached to the AOL-Time Warner merger approval, it said. Meanwhile, AOL said the agency should impose the network neutrality rules it proposed in the open Internet proceeding, regardless of how that proceeding plays out. But it did not propose the wholesale access conditions EarthLink laid out. Other critics of the deal focused on the harms the merger could pose to the pay-TV programming market (CD June 22 p5). Some said certain divestitures should be a condition of approval.

Verizon CEO Ivan Seidenberg cited several pending policy proposals and bills as major impediments to economic growth and competitiveness, at the Economic Club of Washington Tuesday. Potential negative effects of proposals in areas like broadband, trade, the financial revamp and taxes are “too significant” to ignore, Seidenberg said. He criticized the FCC’s approach on broadband as “overbearing.” (See separate story in this issue.) Meanwhile, he warned of unintended consequences of Congress’s proposed financial reform (CD May 5 p2). Some of the current proposals with respect to derivatives and proxy access go too far, imposing one-size-fits-all solutions on “highly dynamic and diverse businesses,” he said. The revamp would increase risk and volatility “at a time when just the reverse is required,” he said.