Center for Advanced Communications Policy | Archives

Telecom/IT Policy Highlights

Volume: 6.04
April 2006

Overview

Policy / Legislative Activities

Regulatory Activities

Judicial Activities

Research / Reports

Items of Interest

Events

Newsletter Info

Overview
Municipal broadband projects continue to make headway in the United States. At least 193 city or country projects are currently under way. Although networks in Philadelphia, San Francisco, Chicago, and Washington, D.C. have yet to be launched, these projects have garnered the lion's share of media attention. For example, some politicians in San Francisco have contacted the American Civil Liberties Union (ACLU) to review the city's deal with Google and EarthLink in light of perceived privacy concerns. However, a number of smaller cities have actually deployed municipal broadband networks. Two such projects, one in Tempe, Arizona, and the other in St. Cloud, Florida, made their way into the national spotlight this month. Both cities launched their networks about two months ago. Officials in both cities acknowledged there are still gaps in coverage at this time and that special adaptors might be necessary to amplify signals indoors, a cost unforeseen by many consumers. But most city officials and residents are optimistic about the new service. And now that the networks are up and running, network performance and the cities' proposed revenue models will be watched with great interest. Several pieces of legislation introduced this month, including the “Communications, Consumer’s Choice, and Broadband Deployment Act of 2006” and “American Broadband for Communities Act” may influence the future of such efforts.

At Deadline...
05.01.2006 – On Monday, May 1, Senate Commerce Committee chairman Ted Stevens (R-AK) and Commerce Committee co-chairman Daniel Inouye (D-HI) introduced the “Communications, Consumer’s Choice, and Broadband Deployment Act of 2006” [S. 2686] on the floor of the Senate. The bill’s introduction follows a series of 14 hearings held by the Senate Commerce Committee on the current state of telecommunications law in the United States, and it represents the latest attempt to amend the Telecommunications Act of 1996. The expressed theme of the bill is an attempt to facilitate the deployment of broadband service nationwide, a response to the observation made by the bill’s sponsors that the United States ranks 16th in the adoption of broadband worldwide. In order to achieve its goal of increasing the proliferation of broadband service, the bill is designed to permit local governments to develop their own broadband initiatives, provided they do not compete unfairly with private companies engaged in the same pursuit. By taking a position somewhere between allowing local governments to freely develop community broadband services and prohibiting such activities altogether, Stevens and Inouye’s bill draws upon previously introduced legislation such as Sen. John McCain (R-AZ) and Sen. Frank Lautenberg’s (D-NJ) “Community Broadband Act of 2005” [S. 1294] and Sen. John Ensign’s (R-NV) “Broadband Investment and Consumer Choice Act” [S. 1504].

In addition to its primary intention to promote nationwide broadband deployment, the bill also contains a series of provisions that would effectively rewrite the Telecommunications Act of 1996. Among these, the bill calls for the interoperability of emergency communications systems, especially in the aftermath of Hurricanes Katrina and Rita. Perhaps most relevant to current efforts at telecom reform, the bill would hold Voice over Internet Protocol (VoIP) service providers responsible for Universal Service Fund (USF) taxes, current interconnection regulations, and rules governing disability access to telecommunications service. In contrast to the COPE Act (see below) recently introduced in the House by Rep. Joe Barton (R-TX), the Communications, Consumer’s Choice, and Broadband Deployment Act would not create a national franchise for video services, but would rather streamline the franchising process at the state and local levels. The bill directs the FCC to conclude its ongoing white space rulemaking proceeding (see below), to permit unlicensed, non-exclusive use of unassigned, non-licensed television bandwidth, presumably for broadband deployment through Wi-Fi, Wi-Max, and related technologies. While the bill does not contain any mandate on net neutrality, it also directs the FCC to study, report, and make recommendations on the issue. The bill also contains provisions related to other telecom issues, including video content, broadcast flags, child pornography, and the digital television transition.

As of this date, a copy of the bill has not been received from the Government Printing Office and is not yet available. A link to the bill’s text will be made available in next month’s TIPH. For a copy of Sen. Stevens’ introduction of the bill to the Senate Commerce Committee, see [http://commerce.senate.gov/pdf/floorstatement.pdf] (PDF only).
[Sources: Library of Congress and Senate Committee on Commerce, Science & Transportation]

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Policy / Legislative Activities
COPE Act Moves to House Floor
04.26.2006 – The House Commerce Committee approved draft legislation tentatively titled the "Communications Opportunity, Promotion and Efficiency Act of 2006," or COPE Act. The COPE Act was introduced in a subcommittee meeting last month by Rep. Joe Barton (R-TX) and sets up a framework for national video franchises that would enable Verizon, AT&T, and other telecommunications providers to more readily offer competition to cable providers. The committee voted against an amendment that would guarantee "network neutrality," which would have forbidden Internet providers from discriminating against certain content or service providers. Representatives voting against the amendment argued that it was unnecessarily preemptive and maintained that the FCC has the authority to ensure net neutrality. While the bill contains some language that would preclude new franchises from "cherry picking" wealthy areas and ignoring low-income areas, critics such as Rep. Ed Markey (D-MA) argued unsuccessfully for more comprehensive build-out requirements. The bill is expected to be introduced on the House floor in early May. At this time, it is possible that network neutrality and other amendments will be reintroduced.

Benton.org offers a summary of the changes to the COPE Act since it was introduced in late March: [http://www.benton.org/benton_files/bartonbillaprilupdate.doc]
[Sources: C|Net, Benton, InternetNews, and SavetheInternet.org]

Dorgan, Snowe Introduce Net Neutrality Act in Senate
04.04.2006 – On the other side of Capitol Hill, Senators Byron Dorgan (D-ND) and Olympia Snowe (R-ME) released draft legislation that would codify network neutrality. The "Internet Neutrality Act" aims to preserve "the freedom to use the Internet without interference from network operators, which has been the basis for Internet commerce and user expectations since its inception." This legislation is similar to the "Internet Non-Discrimination Act of 2006" [S. 2360] released last month by Senator Ron Wyden (D-OR). The Wyden legislation is meant to "ensure and promote a free and open Internet for all Americans" but not does not explicitly use the phrase "net neutrality" as the Dorgan-Snowe legislation does.

The full text of the Snowe-Drogan legislation is available at:
[http://static.publicknowledge.org/pdf/ina-staff-draft-20060404.pdf] (PDF);
text of S. 2360: [http://thomas.loc.gov/cgi-bin/query/z?c109:S.2360:]
[Sources: Library of Congress, Internet News, and Public Knowledge]

Legislation to Open Television Spectrum for Unlicensed Use
04.13.2006 – The "American Broadband for Communities Act" (ABC Act) [H.R.5085], a measure intended to promote and expedite wireless broadband deployment in rural and other areas, was introduced in the House of Representatives this month. The legislation would allow for unused portions of the television spectrum (54-698 MHz) known as "whitespaces" to be used by unlicensed wireless devices, an action especially supported by proponents of Wi-Fi and Wi-Max deployment. The legislation was introduced by Rep. Jay Inslee (D-WA) and co-sponsors Rep. Marsha Blackburn (R-TN), Rep. Tammy Baldwin (D-WI), Rep. Paul Gillmor (R-OH), and Rep. Rick Boucher (D-VA). A similar bill that shares the same name [S. 2332] was introduced in the Senate in February. The full text of the House bill is available at [http://thomas.loc.gov/cgi-bin/query/z?c109:H.R.5085:]
[Sources: Library of Congress and TMCnet.com]

A New “Tax” on Satellite Radio?
04.26.2006 – Bipartisan legislation that would require satellite radio companies to compensate the music industry for downloads was introduced in the Senate this month. The "PERFORM Act," or the "Platform Equality and Remedies for Rights Holders in Music Act of 2006" [S.2644] would require satellite, cable and Internet broadcasters to pay additional royalties to account for music downloaded by users. In addition, the bill would require providers to employ digital rights management technology to prevent music piracy. Legislators sponsoring the bill appear to be using a model where satellite radio stations such as Sirius and XM are considered essentially music distribution services rather than traditional radio stations. Text of the bill is available at [http://thomas.loc.gov/cgi-bin/bdquery/z?d109:s2644:]
[Sources: Library of Congress, Washington Post, and SiliconValley.com]

Proposed Legislation to "Enhance" DMCA
04.24.2006 – Draft legislation entitled the "Intellectual Property Protection Act of 2006" would expand the scope of the "Digital Millennium Copyright Act" (DMCA) [P.L. 105-304]. According to news reports, the legislation will be sponsored by Lamar Smith (R-TX) and is supported by the Bush administration, the Recording Industry Association of America (RIAA), and the Motion Picture Association of America (MPAA). Among other provisions, the legislation boosts criminal penalties for copyright infringement, permits wiretaps in investigations of copyright crimes, and makes attempted copyright infringement, as well as conspiracy to commit copyright infringement, criminal offenses. Many critics of the proposed legislation believe that enforcement of the DMCA is already overly broad: the DMCA has been invoked not only against “pirates”, but also against consumers, scientists, and academics.
The draft legislation is available at [http://static.publicknowledge.org/pdf/ip-protection-act-2006-20060413.pdf] (PDF only). Additionally, the Electronic Frontier Foundation released a report analyzing the effects of the DMCA this month. See story below.
[Sources: C|Net and EFF]

Universal Service Bill Introduced in House of Representatives
3.30.2006 – Recently, House Energy and Commerce Committee members Lee Terry (R-NE) and Rick Boucher (D-VA) introduced a new bill to the House for reform of the Universal Service Fund (USF), a multibillion dollar pool of money that is used to subsidize telecommunications services in rural areas, public schools and public libraries. The Universal Service Reform Act of 2006 [H.R.5072] calls for improvements to the USF which would involve broadening the base of contributions to the Fund, controlling distribution of money from the Fund and assisting with the installation of high speed broadband access. Representative Boucher stated that the measure “will expand who pays into the Fund, cap the growth of the Fund, and modernize (it) by allowing its use for deployment of high speed broadband service” (US Fed News, 3/30/2006). Currently, long-distance, wireless, pay phone and wire line phone services must give a percentage of their revenue to this fund. However, since the establishment of USF, a host of new providers such as voice over internet protocol (VoIP) have entered the voice service market but are exempt from USF payments. The aim is to ensure that the USF continues to be viable since rural areas rely on the funds to provide service by including nontraditional contributors and expanding the realm of universal service to include broadband. This reform of the USF is important because it brings to light the issue of universal access to wireless services for all Americans. View bill text at: [http://thomas.loc.gov/cgi-bin/query/z?c109:h.r.5072:].
[Source: Library of Congress and US Fed News]

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Regulatory Activities
FCC Announces Rules for Spectrum Auction
04.12.2006 – The FCC will auction 1,122 Advanced Wireless Service (AWS) licenses in the 1710-1755 MHz and 2110-2155 MHz bands on June 29. These swathes of spectrum are currently occupied by agencies within the Federal government, including the Department of Defense, and these agencies are in the process of being relocated to higher bands as a result of the "Commercial Spectrum Enhancement Act" (CSEA) [P.L. 108-494], which was signed into law by President Bush in 2004.

The AWS licenses are expected to be sought after by telecom, cable, and Internet content providers alike as the bandwidth is suitable for delivering voice, video, data and other "third generation" wireless services. The auction will be unique because the bidding process will be anonymous. The Commission will announce the amount of the bids, but not the identity of the bidders. The FCC has enacted this measure to thwart potential collusion among bidders. However, if the FCC deems that there is sufficient competition prior to the auction—if the average number of initial bids per license is greater than three—then the auction will be transparent.

To encourage competitive bidding, the FCC has in the past offered discounts to small businesses interested in acquiring spectrum. However, large carriers, including Cingular and T-Mobile, exploited these provisions by partnering with small businesses and then acquiring access to the discounted spectrum once the auction had completed. This month the FCC adopted rules that bar a bidder that leases or resells more than half of the spectrum capacity of a license from qualifying for the discounts. The 90 megahertz of spectrum that will be available is expected to generate $8 billion to $15 billion or more for the government.
The Public Notice [FCC 06-47] announcing procedures for the auction is available at [http://hraunfoss.fcc.gov/edocs_public/attachmatch/FCC-06-47A1.doc].
A Second Report & Order and Second Further Notice of Proposed Rulemaking [FCC 06-52] addressing wireless auction discount rules is available at
[http://hraunfoss.fcc.gov/edocs_public/attachmatch/FCC-06-52A1.doc].
[Sources: FCC and C|Net]

FCC Seeks Comment on AT&T-BellSouth Merger
04.19.2006 – In a Public Notice [DA 06-904] the FCC announced that it is seeking comments regarding the proposed merger between AT&T and BellSouth, whereby AT&T will acquire BellSouth and assume 100 percent control over Cingular Wireless, which is already a joint venture between the two companies. The merger is contingent upon approval by regulatory authorities as well as shareholders of both companies. AT&T expects to obtain approvals that will allow for completion of the transaction before the end of this year.
The Public Notice is available at [http://hraunfoss.fcc.gov/edocs_public/attachmatch/DA-06-904A1.doc].

Comments/Petitions Due: June 5, 2006
Responses/Oppositions to Petitions Due: June 20, 2006
[Sources: FCC and Business Wire]

FCC Releases Data on High-Speed Services for Internet Access
04.03.2006 – The FCC's Wireline Competition Bureau released a report entitled High-Speed Services for Internet Access: Status as of June 30, 2005. The report states that in the first half of 2005, the number of high-speed Internet connections increased by five million from 37.9 million to 42.9 million (approximately 13 percent). According to the report, 98 percent of Zip Codes are serviced by at least one high speed Internet provider. The report also examines the popularity of technologies used to access the Web such as cable modems, DSL, fiber to the premises, and other technologies.
Access the report at:
[http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-264744A1.pdf](PDF only).

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Judicial Activities
TV Networks Unite to Sue FCC Over Indecency Ruling
04.20.2006 –In a Notice of Apparent Liability and Memorandum Opinion and Order [FCC 06-17] released March 15, the FCC sought to address complaints brought about by 49 television programs broadcast between February 2002 and March 2005. The Commission reprimanded stations for airing what it deemed obscene content at various times. Now ABC, CBS, FOX, NBC, and many local stations have filed suit against the FCC. The networks want to reverse certain aspects of the FCC ruling, especially those relating to the use of profanity, and create clearer guidelines about what is indecent. Whether or not the stations can convince the courts to overturn previous decisions that uphold the FCC actions remains to be seen. Given the complexity inherent in defining indecency, and the debate over technology designed to shield children from inappropriate content such as V-Chips, this case could find its way to the Supreme Court.
The FCC Order is available at: [http://hraunfoss.fcc.gov/edocs_public/attachmatch/FCC-06-17A1.doc].
[Sources: FCC (3/15); New York Times (4/16); Christian Science Monitor (4/20)]

Apple Awaits Ruling on Subpoena to Blogger
04.20.2006 – Last year in Apple Computer v. Doe No. 1 et al Santa Clara County Superior Court [04-CV-032178] a lower court ruled that Apple should be able to gain access to the electronic records of a blog that revealed details pertaining to an unreleased Apple product. The Apple news site PowerPage.org posted confidential information about Asteroid, an adapter that would sync a guitar with the GarageBand music program. Apple filed suit against an unnamed defendant (not PowerPage.org) to determine who leaked the information. That case is now on appeal, and both sides offered oral arguments before a three-judge panel this month. The heart of the case centers on journalists' ability to protect confidential sources. Apple's attorney argued that legal precedents that apply to traditional journalists, where leaking trade secrets trumps reporters' right to protect their sources, ought to apply to bloggers as well. However, the panel questioned whether or not Apple sufficiently investigated the leak internally prior to issuing a subpoena for records from PowerPage.org.
[Source: C|Net and EFF]

DOJ Cracks Down on E-Rate Abuse
04.21.2006 – The US Department of Justice (DOJ) announced that NextiraOne, a Houston-based networking equipment and services company, entered into a plea agreement and agreed to pay a $1.9 million criminal fine and $2.6 million in restitution for defrauding the FCC's E-Rate program and schools in South Dakota. Borne of the 1996 Telecommunications Act, the E-Rate program was designed to help poorly funded school systems acquire communications equipment by distributing monies from the Universal Service Fund. However, the program has been subject to fraud. Including the NextiraOne case and another case resolved this month in South Carolina. Eleven individuals and 10 companies have been charged as a result of the DOJ's ongoing investigation into the E-Rate program. Defendants have agreed to pay criminal fines and restitution totaling more than $40 million.
[Sources: Department of Justice, Congressional Research Service, and InfoWorld]

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Research / Reports
Digital Openness Spurs Innovation, According to Report
04.17.2006 – The Digital Connections Council of the Committee for Economic Development released a report entitled Open Standards, Open Source, and Open Innovation: Harnessing the Benefits of Openness. First the authors discuss how open standards facilitate competition by lowering the cost of entry, stimulate innovation, and preclude self-interested parties from controlling a standard. Secondly, the authors state that proprietary software and open-source software must co-exist, as each plays an important role in the evolution of technology. In other words, because users should not be confined to one paradigm or the other, technologies should be interoperable. Thirdly, the authors discuss the importance of Wikipedia, eBay and other websites and applications that collect, and in turn, reflect data from thousands of users. During this discussion, the authors question conventional views of intellectual property.
Access the report at: http://www.ced.org/docs/report/report_ecom_openstandards.pdf (PDF only).
[Sources: Benton and Committee for Economic Development]

EFF Releases Report on DMCA
04.15.2006 – This month the Electronic Frontier Foundation released a report entitled Unintended Consequences: Seven Years under the DMCA. The report highlights the opportunity cost of the DMCA and presents evidence that the DMCA stifles legitimate innovation and competition. The report is available at:
[http://www.eff.org/IP/DMCA/?f=unintended_consequences.html].
[Source: EFF]

FCC Releases Data on Local Telephone Competition
04.03.2006 – The FCC's Wireline Competition Bureau released another report, Local Telephone Competition: Status as of June 30, 2005, which pertains to the competitive landscape for local telephone providers. One of the report's most salient conclusions stated "mobile telephony service providers reported 191.3 million subscribers, compared to 181.1 million six months earlier." Additional information relating to mobile telephone subscribers, including a state-by-state breakdown is available in Table 14 of the report.
The report can be read in its entirety at
[http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-264742A1.pdf] (PDF only).
[Source: FCC]

Intel and MRI Report on Government-led Wireless Internet
04.24.2006 – Authored by Intel and MRI, The Dollars and Sense of Government-Led Wireless Internet: A Guide for Government Employees and Community Activists explains that cities already provide many key services and infrastructure to citizens (water, roads, and so forth) and offers guidelines for communities considering their own wireless municipal networks. The report indicates that a wireless communications infrastructure promises benefits beyond low-cost or no cost Internet access for citizens. A return on investment might come from efficiencies gleaned by streamlining certain government operations, enhancing the communication network used by public safety officials, and spurring economic development.
The report can be read in its entirety at:
[www.muniwireless.com/reports/docs/Intel_dollars_and_sense_of_government.pdf] (PDF only).
[Sources: Benton and MuniWireless]

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Items of Interest
Free Muni WiFi Projects Underway
04.23.2006 – In a joint venture with Hewlett-Packard, St. Cloud, Florida, an Orlando suburb, is the first city in the US to offer free (taxpayer supported), citywide Wi-Fi. However, approximately seven weeks into the projects residents are reporting some spotty coverage and slow connections. According to news reports, city officials acknowledge that it could take up to a year before kinks in the system are ironed out.

In May 2004, St. Cloud set up a pilot project, creating a WiFi network for a new development in town as an additional incentive for businesses to relocate. Once this network proved to be a success, city officials decided to expand it to the entire city. Officials expect that increased efficiencies in governmental operations will offset the network's $2.6 million startup cost as well as the estimated $400,000 in annual operating expenses. In addition, officials hope that money residents normally spend on monthly Internet access will be funneled back into the community instead.
[Source: Mercury News]

Google, Earthlink Win San Fran WiFi Bid
04.06.2006 – Google and Earthlink's joint bid to provide the city and county of San Francisco with wireless Internet was accepted. Their plan calls for two-tiers of Internet access. One will be free (advertiser supported) and deliver data at 300Kbps, about six times as fast as a dialup connection. A premium network that delivers data roughly 18 times as fast as dialup will be available for approximately $20 per month. Construction on the $15 million network is expected to begin this year and the network is expected to launch in early 2007. Other companies that bid on the project were MetroFi, Communication Bridge Global, NextWLAN, Razortooth Communications, and SF Metro Connect, an alliance between SeaKay, Cisco Systems and IBM.

Google is expected to employ contextually based advertisements. That is, ads based on users' locations. This technology has upset some privacy advocates who have pointed out that the network has the potential to track users as they move from place to place.
[Sources: Google.com, Financial Times, and Mercury News]

National Cable & Telecommunications Association Conference in Atlanta
04.13.2006 – The National Cable and Telecommunications Association's (NCTA) annual convention was held in Atlanta. Video franchising was a popular topic at the convention. According to published reports, cable providers believe that local officials should retain control over video franchising and that telecom companies wishing to offer television services ought to abide by franchise rules already in place, and that telecom companies should not be allowed to "cherry pick" which neighborhoods they serve. Other topics at the conference included interactive gaming, video-on-demand, and the shift toward personalized media.
[Sources: Boston Globe and TheNationalShow.com]

Wi-Fi Phone Demo at CTIA Wireless Conference in Las Vegas
04.09.2006 – A Nokia employee demonstrated a technology called Unlicensed Mobile Access (UMA) that enables a mobile phone to switch seamlessly between a mobile carrier's proprietary network and a local WiFi network. The technology will help users overcome shoddy coverage in their homes or offices and represents a way for carriers to improve their networks without spending money on new infrastructure. ABI Research predicts the market for WiFi enabled mobile handsets to reach 100 million units annually by 2009. However, whether these handsets will be married to proprietary networks or resemble portable VoIP phones remains to be seen.
[Source: Associated Press]

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Events
2006 Alliance for Community Media International Conference and Trade Show
The Alliance for Community Media (ACM) 2006 International Conference and Trade Show will be held in Boston, Massachusetts July 6-9. The alliance is noted for working with the FCC, Congress, state legislatures and other regulatory agencies to ensure that all people regardless of race, age, gender, disability, religion or economic status have access to technology, especially Public, Educational and Governmental (PEG) television channels. The ACM’s conference website is available at http://acmboston.org.

Beyond Broadcast: Reinventing Public Media in a Participatory Culture
The Berkman Center for Internet & Society at Harvard Law School is sponsoring Beyond Broadcast: Reinventing Public Media in a Participatory Culture. The goal of the conference is to identify opportunities for interaction between traditional media and new participatory web-based efforts, to consider the latest projects in this vein and to establish a shared understanding of the potential and meaning of a renewed public media role. The conference will be held on May 12-13, 2006. Registration and other details are available http://www.beyondbroadcast.net/blog/

Building the MuniWireless Ecosystem
The Muniwireless Silicon Valley Conference is scheduled for June 19-21, 2006 in Santa Clara, California. The conference will provide a platform for decision-makers "across the muniwireless ecosystem to come together to meet, plan, and build new relationships." The conference website, http://www.mw06sv.com/, contains more information.

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Newsletter Info

Center for Advanced Communications Policy

Telecom/IT Policy Highlights Volume 6.04
April 2006
Michael Wilt, Editor
Lynzee Head, Editor in Chief

Telecom/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.
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Volume: 6.04 April 2006

Contents:

Volume: 6.04
April 2006