DirecTV, Dish Network, American Cable Association and others continued to urge the FCC to take action on the retransmission consent regime. The commission can prohibit separately owned TV stations from coordinating their retransmission consent negotiations, the multichannel video programming distributors, as well as Charter and Public Knowledge, said in an ex parte filing in dockets 10-71 and 09-182 (http://bit.ly/IZ6ZF7). The FCC can protect consumers caught in the middle of retransmission consent disputes “by establishing dispute-resolution mechanisms and requiring interim carriage in the event of negotiating impasses,” the filing said. The commission can take such actions in the context of either its 2010 rulemaking considering changes to its retrans consent regime or its pending 2010 quadrennial media ownership review, “or address them in both proceedings,” it said. “But it cannot simply permit the status quo to continue consistent with its statutory obligations to protect consumers and competition.” The filing recounted a meeting with Adonis Hoffman, chief of staff for Commissioner Mignon Clyburn.
"Critical mass” in the outdoor small cell market will occur slightly later than previously forecast, about “two years out from now,” Infonetics said Thursday. That will in turn affect the small cell backhaul market, which grows parallel to the outdoor small cell market, Infonetics said. “We still believe the outdoor small cell market will happen, but judging by the speed at which things moved -- or didn’t move -- in 2013, it’s just going to take a little longer to get off the runway,” said Richard Webb, Infonetics directing analyst-microwave and carrier Wi-Fi, in a news release. Outdoor small cell deployments will be driven “largely by mobile operators’ need to enhance saturated macrocellular networks in urban, high-traffic areas and improve the mobile broadband experience,” Infonetics said. Outdoor small cell backhaul connections are forecast to reach 656,000 by 2017 (http://bit.ly/1dT8LBc).
Update the E-rate program now, 26 members of the House told all five FCC commissioners in a letter dated Wednesday. The House sponsors of the letter -- Reps. Jared Polis, D-Colo.; Chris Gibson, R-N.Y.; Jared Huffman, D-Calif.; Don Young, R-Alaska; and Suzan DelBene, D-Wash. -- sought colleagues’ signatures for a draft of the letter earlier in December (CD Dec 10 p10). “We ask the Commission for swift action to bring high-speed broadband to our students on an expedited basis,” said the final copy of the letter, advocating for school broadband speeds of 100 Mbps now and 1 Gbps by 2017. The letter included several recommendations, such as that the FCC should create an “update fund within the E-rate program to connect every school and library, particularly those in rural areas, to high-speed broadband.” The FCC should up its transparency and accountability and simplify its paperwork, the letter said. The agency has been in the process of updating the E-rate program in recent months, and President Barack Obama has also voiced support for updates, calling the initiative ConnectEd. A spokeswoman for DelBene told us the letter would have been sent to the agency Wednesday.
"The years-long quest upon which the FCC has been embarked to determine whether special access rates are ‘reasonable’ makes Don Quixote’s quest look like child’s play,” Free State Foundation President Randolph May said in a blog post Tuesday bemoaning the special access “debacle” (http://bit.ly/18Rla5C). The FCC is unlikely to ever gather all, or even most, of the requested data, May said, citing an NCTA petition seeking review of the data collection it said violates the Paperwork Reduction Act (http://bit.ly/18RlukP). Even assuming the special access market should be more competitive than it already is, any potential mandated rate reduction would “deter the development of further facilities-based competition,” May said. He also criticized the FCC’s decision to suspend and investigate AT&T’s special access tariff filing proposing to eliminate new long-term discounts (CD Dec 10 p1). “The FCC’s action was a mistake, and it leaves one wondering whether the agency has any appreciation at all of the way its actions can adversely affect the transition to all IP networks that enable less costly, more efficient services,” May said. “The Commission needs to reorient its pro-regulatory mindset in a meaningful way."
Gray Television agreed to buy KEVN-TV (Fox) Rapid City, S.D., from Mission TV for $7.75 million, Gray said in a news release Wednesday (http://bit.ly/1jiJxDj). The transaction also includes KEVN’s satellite station KIVV-TV Lead. KEVN is the No. 2-ranked TV station in the Rapid City market, and Gray’s first “stand-alone full-power Fox affiliate,” said the acquirer. Gray has recently announced deals to buy other stations in the region from Hoak Media: An ABC affiliate in Sioux Falls, S.D., and the NBC affiliates in Fargo and MinotBismarck, N.D. The KEVN deal needs regulatory approval and is expected to close in Q1 or Q2, said the acquirer.
Even after completion of the IP transition, the wholesale wireline provisions of the Communications Act will continue to be necessary and important, Comptel told an aide to FCC Chairman Tom Wheeler. Regardless of the technology used, “access to consumers is required” to ensure competition isn’t stifled, Comptel said. “It is not economically viable for competitors to replicate the ILEC network in its entirety,” the association of competitive providers said. “Competitors must supplement their reach” by “purchasing from large ILECs wholesale last mile access,” it said. The commission could speed the IP transition by “confirming that IP interconnection for voice services falls under Sections 251 and 252 of the Act,” Comptel said.
Gannett may get a retransmission consent and cost-savings boost from buying Belo Corp. after the Department of Justice OK'd it with a divestiture (CD Dec 17 p6), a stock analyst wrote to investors Wednesday. The acquirer “could see modest multiple expansion, benefiting from ramping retrans and increased synergies along with strong political inflows helping boost total cash flow and offsetting ongoing weakness in print,” said Ed Atorino of Benchmark. He said Belo means “higher margin revenue streams” for Gannett, which also owns daily newspapers including USA Today.
AT&T’s $2 billion sale of its Connecticut wireline operations to Frontier Communications (CD Dec 18 p9) shouldn’t have a “material impact” on AT&T’s free cash flow, Credit Suisse said in a research note Tuesday. The assets being sold generate roughly $1.2 billion of AT&T’s annual revenue, which is less than 1 percent of the telco’s total sales, the report said. “While the deal in itself has little impact on AT&T’s financials, we view the move to monetize these fixed line assets as a small positive, as we believe the capital could be used to ramp Project VIP.” Project Velocity IP is AT&T’s plan to invest $14 billion in upgrades to its wireless and fiber network (CD Nov 8/12 p11). The transaction is “attractive” for Frontier, said Andrew Spinola, analyst at Wells Fargo, in a research note Tuesday. “This is a significant transaction, but FTR has experience with these types of transactions and should be well-positioned to manage the process,” Spinola said. “The transaction is also financially attractive as it improves the payout ratio, creates $200MM in synergy opportunities, and increases the scale of the business,” he said. UBS expects Frontier to implement its “local engagement and simplified pricing plans” in Connecticut to drive penetration higher in residential and small and medium enterprises, said analysts Batya Levi and John Hodulik in a research note Tuesday. “We believe wireless backhaul will be a growth driver” of revenue and free cash flow, “as most of the towers had already been upgraded,” while regulatory revenue remains relatively stable, said the UBS analysts.
Iridium’s petition for reallocating Globalstar’s Big low-earth orbit spectrum will ensure sufficient spectrum to promote continued development and innovation in essential mobile satellite service (MSS), Iridium said in FCC RM-11685 (http://bit.ly/18z3Bwu). The petition is neither anticompetitive “nor would it hinder Globalstar in pursuing its MSS or TLPS business plans,” Iridium said of Globalstar’s proposed terrestrial low-power service. Iridium’s growth is expected to continue, “driven by the introduction of new products and services enabled by upgrades in Iridium’s constellation and its innovative vendor partnerships,” it said. As Iridium prepares for the launch of Iridium Next, its next-generation network, “it will be increasingly important to ensure that it has sufficient spectrum available to support this expansion as well as sustain its core business,” it said. “Iridium offers nothing new in its response and nothing supports its request to take almost 3 MHz of Globalstar’s L-band spectrum,” said Barbee Ponder, Globalstar general counsel.
Michigan’s Merit Network and the Ohio Academic Resources Network completed construction of a fiber connection between their networks, they said in a news release Wednesday. The new connection will help provide increased redundancy for the networks, they said.