Telecom/IT Policy Highlights
Volume: 5.09
October 2005
Contents:
Overview
Policy / Legislative Activities
Regulatory Activities
Items of Interest
Newsletter Info
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Overview
The most prominent players in the phone, cable, and Internet industries are set on a collision course. Many companies are hurdling toward the same space, vying for control of point-to-point communication systems (phone, email) and content distribution systems (television-on-demand, music, news). Technology, as relentless as ever, continues to assail the entrenched political modus operandi, moving too quickly for a legislative system bound by safety mechanisms that forbid reckless acceleration. Last month, in the wake of Hurricanes Katrina and Rita, the need for policymakers to construct parameters for an emergency communications network in a timely manner became evident. A similar challenge has come to the fore this month concerning telecom policy. There is pressure for politicians to act quickly, but without haste, in devising a regulatory landscape that evolves easily, spurs innovation, and does so on terms that protect the public's best interest—Never mind that achieving this end is like trying to hit a moving target.
According to a recent study, the United States ranks 16th in the world in the percentage of citizens with access to broadband technology. Which sphere—government or private industry or some combination thereof—ought to be charged with improving America's ranking on this front? The fate of wireless as a public utility akin to water and electricity is hitched to whatever legislation supplants the 1996 Telecom Act. In July, Senator John Ensign (R-NV) introduced the Broadband Investment and Consumer Choice Act [S.1504]. The bill seeks to empower big businesses and weaken cities' ability to deploy municipal broadband networks. Conversely, the Community Broadband Act of 2005 [S.1294] introduced by Frank Lautenberg (D-NJ) favors free rein for cities wishing to deploy their own networks. Such contrasting Bills promise different, but equally profound repercussions. Likewise, mergers such as the two approved this month between SBC and AT&T and Verizon and MCI, will transform the telecommunications industry in dramatic fashion.
Regardless of how the regulatory chips fall, an Internet that is at once wireless and ubiquitous is certain to alter the political and social fabric of America. Consider, in addition, the proliferation of RFID technology and it quickly becomes clear that stunning consequences are in the offing. RFID technology is not limited to tracking consumer goods in the supply chain, but also has important implications pertaining to homeland security and emergency communications. While new efficiencies and conveniences loom on the horizon, so to does the specter of Orwellian surveillance. Protecting individual rights to privacy adds yet greater complexity to challenges faced by policymakers.
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Policy / Legislative Activities
Committee Sets Date for Transition to Digital Television
10.26.05 – The House Committee on Energy and Commerce approved the Digital Television Transition Act of 2005, legislation that sets a firm date to complete the transition from analog to digital television. "Thursday January 1, 2009 will be the day America goes all digital. The analog television signals that have come into our homes over the air since the birth of TV will end the night before," said U.S. Rep. Joe Barton, R-Texas, chairman of the committee.Setting a final date for TV stations to end analog broadcasts will free up the nation's airwaves for use by police, firefighters, and emergency medical technicians. A press release by the House Committee stated: "Freeing the analog spectrum band will allow Congress to honor its decade-old promise to give first responders 24 MHz of additional spectrum. This spectrum is ideal for interoperability, which will allow members of different public safety agencies to communicate with each other." The legislation also includes a campaign to educate consumers about the transition and funds for analog-to-digital converter boxes so that consumers will not be left behind in the transition.
A similar bill in the Senate, the Digital Transition and Public Safety Act of 2005 sets the date for the switch at April 7, 2009. In addition to setting a later deadline than its counterpart in the House, the Senate Bill calls for $3 billion to help consumers make the switch from analog to digital while the House bill includes a budget of nearly $1 billion. Differences between the measures need to be reconciled in a House-Senate conference. Text of the committee version of the bill is available in Portable Document Format (PDF) at: http://energycommerce.house.gov/108/Markups/10252005/Title_I.PDF.
Text of the committee version of the House bill is available in Portable Document Format (PDF) at: http://commerce.senate.gov/pdf/reconcil10.pdf
[Source: House Committee on Energy and Commerce]Ensign Promotes Telecom Deregulation
10.21.05 – Speaking at an event held by the Free Enterprise Fund, Senator John Ensign (R-NV) outlined aspects of the Broadband Investment and Consumer Choice Act [S.1504], his proposal to overhaul regulations put in place by the 1996 Telecom Act. He explained how telecom deregulation is integral to American competitiveness in the global marketplace: "If legislation like mine is enacted, we can expect more and better services at better prices...and there will also be a tremendous investment in infrastructure that is absolutely desperately needed in United States."One interesting aspect of the Ensign Bill lies in a clause that eliminates the need for local franchise agreements for video service providers in lieu of a national franchising system. Local governments oppose this facet saying that it undermines their ability to regulate what happens within their own boundaries. However, the Bill contains language that specifies obligations due to local franchise areas. Critics of the Ensign legislation find his assurances of consumer benefits dubious. Jeannine Kenney, a senior policy analyst at Consumers Union, the advocacy group that publishes Consumer Reports, contends legislation like Ensign's will encourage monopolization within the telecommunications sector. Others suggest the legislation is too biased toward the Baby Bells. For starters, Verizon, Sprint, and SBC, for example, take offense to municipal broadband initiatives because they would rather the wireless broadband market resemble the lucrative cell-phone market—not the less profitable public utility market. Secondly, by eliminating the need to negotiate local franchise agreements with individual municipalities, Baby Bells could easily convert themselves into video service providers.
The full text of the proposed Ensign Bill is available in Portable Document Format at http://tinyurl.com/car9n.
[Sources: U.S. Congress, Free Enterprise Fund, United Press, Internet News, Slate]Senate Commerce Committee Approves WARN Act
10.20.05 – The U.S. Senate Committee on Commerce, Science, and Transportation approved the Warning, Alert, and Response Network (WARN) Act of 2005 [S. 1753]. The Committee's press release states: "The WARN Act will establish a network for the transmission of alerts across a broad variety of communication technologies, including wireless communication devices such as cell phones and Blackberries, the internet, digital, analog, cable, satellite television, and satellite and terrestrial radio, as well as non-traditional media such as sirens and 'radios-on-a-stick.'"The WARN Act paves the way for a National Alert System that ensures people will receive life-saving alerts regardless of where an individual is located, what kind of communication technologies they are using or what kind of accident, incident or natural disaster jeopardizes public safety. Finally the WARN Act creates a grant program to "help remote communities install sirens and other devices, particularly in areas where telecommunications infrastructure is insufficient."
[Source: Senate Commerce Committee]
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Regulatory Activities
FCC, DOJ Approve Telecom Mergers
10.31.2005 – The Federal Communications Commission (FCC) approved the multibillion-dollar mergers of SBC Communications with AT&T and Verizon Communications with MCI. The commission concluded the mergers will induce significant benefits to the public, including:1. New services and improved network performance thanks to the integration of complementary networks;
2. Aid to national defense and homeland security efforts;
3. Increased economies of scale and scope for the companies, which should increase incentives and resources to engage in basic research and development; and
4. Substantial cost savings to consumers.Last week the Department of Justice (DOJ) approved the mergers as well, albeit with a caveat to quell anticompetitive practices. The DOJ required Verizon and SBC to lease portions of their fiber optic network facilities to competitors in 19 major metropolitan areas, including New York and Los Angeles. The FCC imposed several additional measures of its own before granting the mergers. Most notably is a provision that requires the companies to offer "naked DSL" to consumers for at least two years. In other words, consumers can subscribe to Internet services without having to sign up for phone service through the same provider. An additional provision—that the companies will allow consumers to use any applications they choose on their broadband connections, for a period of two years—is considered to be a victory for VoIP providers like Vonage and Skype that rely on consumer broadband connections to deliver telephony services over the public Internet.
These stipulations helped the FCC achieve consensus among its four-member panel, but neither Republican nor Democrat factions were perfectly pleased with the terms of the merger. FCC Chairman Kevin Martin sought less regulation, while FCC Commissioner Michael Copps favored a more hands-on approach by the government. In a statement Mr. Martin offered: "I believe that the affected markets would remain vibrantly competitive absent these conditions." Meanwhile Mr. Copps tendered the opposite sentiment: "These conditions provide only a bare minimum…More would clearly have been better."
FCC news release:
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-261936A1.txt
Martin statement:
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-261936A2.txt
Copps statement:
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-261936A4.txt
The National Journal reports on criticisms levied against the merger's approval here: http://njtelecomupdate.com/lenya/telco/live/tb-TNEG1130866454155.html
[Sources: Federal Communications Commission, Department of Justice, Associated Press]Municipal WiFi Deployment Underway in San Francisco; Madison, Wisconsin
10.18.05 - San Francisco mayor Gavin Newsom wants to bring free WiFi to his city's residents. Twenty-six companies responded to San Francisco's request for proposals to build such a network. Big name players like Google, Earthlink, Hewlett-Packard, as well as lesser-known, more regional firms such as MetroFi and SFLAN made pitches. Some proposals call for tax dollars to subsidize the project, while others will recoup costs through advertising sales and access to premium networks with higher bit rates. City officials have indicated they would prefer a single "turnkey operator" to be in charge of the entire network. In conjunction with its wireless push, San Francisco plans to provide citizens with computer training. The city is also looking for ways to acquire free, low-cost and/or refurbished equipment.On a similar note, officials in Madison, Wisconsin announced plans to implement a citywide WiFi network at no expense to taxpayers. Coverage for downtown Madison is expected by March 2006. Plans call for and the network to cover the entire city by early 2007. Some other cities mulling municipal WiFi networks include, for example, Chicago, Miami Beach, Milwaukee, and Portland, Oregon.
[Sources: The San Francisco Chronicle, Government Technology, City of Madison, Slate.com, Las Vegas Business Press]US Passports to Receive RFID Chips
10.25.05 – The U.S. State Department announced plans to issue electronic passports that contain Radio Frequency Identification (RFID) tags. The department will begin its e-passport program this December. The first e-passports will be issued as part of a pilot program to government employees who travel internationally. By October 2006, all US passports, except for a miniscule number of emergency passports, will be chipped.In response to the State Department's request for comments about the switch to e-passports, travelers raised many legitimate concerns. Many people were alarmed by security and privacy issues, citing the potential for "skimming" and "eavesdropping" by wrongdoers. Skimming is the act of creating an unauthorized connection with an RFID tag in order to gain access to its data, and eavesdropping is the interception of an electronic communication session between an RFID tag and an authorized reader. However, the State Department has taken special measures to address both concerns by adding shielding material to the passport's outer cover and encrypting communication between the chip and the reader.
The shift toward e-passports is an international initiative. The RFID Journal reports: "To ensure that U.S. e-passports are interoperable with other nations' systems, the document's embedded RFID chip will comply with specifications developed by the International Civil Aviation Organization (ICAO)." The design of the new e-passport can be seen at this link: http://travel.state.gov/passport/eppt/eppt_2501.html
[Sources: The U.S. Department of State, RFID Journal]
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Items of Interest
Apple Videos Lack Closed Captions
10.31.05 – It took less than 20 days for Apple Computer to sell more than one million videos by way of download. Earlier this month, the company broadened the menu of its popular iTunes Music Store to include music videos and television shows. Previously the iTMS was only a portal for plain old music files, podcasts, and audio books.Apple's foray into video coincides with the launch of the company's latest iPod, which comes equipped with video playback capability and a 2.5-inch color screen. An S-video cable can link the new iPod to a television set for playback on a bigger stage. However, an iPod is not required—all it really takes for download and playback is a personal computer.
Unfortunately videos released by Apple are not encoded with closed captions. While iPods themselves can be modified for use by individuals with hearing or visual impairments, it's unfortunate that iTMS videos are not yet universally accessible. Nonetheless Apple is committed to working with persons with disabilities at evidenced by this link: http://www.apple.com/education/accessibility/disabilities/vision/
[Sources: Reuters, Apple.com, The Washington Post]Cisco System Synchs Emergency Devices
10.24.05 – Cisco announced a new methodology for linking disparate emergency communication systems. Known as Internet Protocol Interoperability and Collaboration Systems, or IPICS, the approach translates voice traffic on radios and cell phones into bits before sending it across the existing Internet infrastructure. Whereas conventional wisdom in the emergency communications industry says to upgrade outmoded systems—discard last year's walkie-talkies in favor of this year's—the Cisco approach creates a flexible network that facilitates interoperability between existing devices on different platforms.
[Source: Cisco.com, The New York Times]FCC Chairman: Expedite Granting of Video Franchises; Revamp USF
10.26.05 – FCC Chairman Kevin Martin addressed attendees at the United States Telecom Association Conference via satellite. In his speech Mr. Martin stressed his commitment to technological and competitive neutrality. He said that providers of the same service must be treated in the same manner regardless of the underlying technology they employ. A formalized, neutral policy is necessary, according to Martin, because services offered by wireless, telephone, cable, and Internet providers are overlapping more and more. Martin would like to make it easier for Bell companies to attain video franchises. For example, SBC and Verizon would like to compete with the cable TV industry by offering their own video services.Mr. Martin also discussed the need to revamp the Universal Service Fund. He mentioned problems with the current system, saying, "The current interstate revenue-based method is outdated…It doesn't account for the increase in bundled service offerings, the increasing migration to wireless and VoIP services or the shrinking long distance market."
Martin speech: http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-261868A1.txt
[Sources: Federal Communications Commission, National Journal]Internet Backbone Dispute Resolved
10.28.05 – Backbone Internet service providers Level 3 Communications and Cogent Communications have resolved their dispute. Earlier this month, Level 3 de-peered Cogent for sending a disproportionate amount of Internet traffic over its network. This course of action resulted in a blackout, making it impossible for many people to access the Internet.Typically, peering agreements are made without money changing hands, since similar sized providers tend to exchange a similar degree of traffic. But if the exchange proves lopsided, as Level 3 claimed it did in this instance, it's logical to demand compensation to account for the imbalance. Cogent refused to pony up any cash so Level 3 terminated Cogent's access to the Level 3 network. In doing so, Level 3 cut off its nose to spite its face: the company disconnected both peers' customers from each other. Because Level 3 and Cogent each rely on direct connections to each other's networks to exchange traffic in lieu of contracting with a third party to create a more redundant network, alternate data paths did not exist, hence the blackout. The exact number of people affected by the blackout is difficult to gauge but likely ranges into the millions.
Because agreements between backbone ISPs are easily dissolved, there is a certain fragility to the Internet's plumbing. It's possible that increased regulation in this arena could proscribe future blackouts. After all, the Internet was designed to be a redundant network, one that offers multiple data paths in case a critical link is broken.
[Sources: Light Speed, ZDNet, PR Newswire]
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Newsletter InfoCenter for Advanced Communications PolicyTelecom/IT Policy Highlights Volume 5.09
October 2005
Michael Wilt, Editor
Lynzee Head, Editor in ChiefTelecom/IT Policy Highlights presents legislative, regulatory, legal, and other items of interest pertinent to information, telecommunications, and related technology policy and research. For additional information regarding the information provided in this report, or if there are newsworthy items that should be included in future editions, please contact ,Graduate Research Assistant, or , Research Scientist.BACK TO TOP OF PAGE