|
Monday, 30 April 2012 23:47 |
|
My comment: Time to get serious about reducing consumer costs, including royalty/patents. By apparent accident, I wound up on a U.S. State Department advisory committee dealing with ITU and international regulations. I was never told the proceedings were confidential or asked to keep them so, but I am treating them that way. However, I believe in the spirit of the FCC ex parte rules. Those advocating to government should do so publicly. I am not reporting on the committee, but am making public what I personally advocated. In the context of the ITU discussion of moving the Internet forward internationally, I advocated taking the lead in making it more affordable for all. In particular, I pointed to the high and controversial patent/royalty costs, which I believe look to raise the costs of wireless, especially LTE and LTE Advanced, brutally. A mobile phone now costs $25 and a low end smartphone/MiFi about $100, heading to $30-50 in a few years. If the royalties claimed by Motorola, Apple, and literally dozens of others were enforced, that would add $20-50 to the cost. Microsoft alone wants $5 from every Android connection despite an almost insignificant part of the “intellectual property.” Getting the poor of the world connected requires bringing down the price as far as possible. As hardware costs come down with Moore’s Law, making royalties truly “reasonable” is the single most important step to bringing down the cost of the gear. ITU leader Haolin Zhou once told me in Geneva “the best standards have no royalties.” A good interim goal is that the total royalties should be 5-10%. On something like LTE, with literally hundreds of patent claims, that means very, very few companies have contributed enough invention to justify more than a fraction of 1%.
|
|
Read more...
|
|
Monday, 23 January 2012 19:40 |
Sandwich Islands lawyer finds strong competition. High-powered D.C. lawyer Rick Joyce of Venable provided a clear case for withdrawing all USF support to his client in an FCC note. “These services are subject to competition from multiple mobile wireless carriers, in addition to digital voice service provided by a cable company. If the information requested were disclosed to Sandwich Isles’ competitors, Sandwich Isles would suffer substantial competitive harm.” He was opposing my freedom of information act request for the blacked out parts of a Sandwich Island petition. SI is appealing the new FCC regulations that limit then to a subsidy of only $3,000/year for each line. They’ve claimed the costs in the “Hawaiian Homelands” areas they service are so high a much higher subsidy is required or no one would reach these customers. Apparently this is untrue and if only Time Warner Cable knew how much money Sandwich Islands was making they’d swoop in and steal all the customers. Rick Joyce is probably a good choice to argue a political case at the FCC. He gave $25,000 to the campaign of Jules’ mentor, Barack Obama. But don’t fear he’s a dangerous socialist as Barack is accused. He also donated to Republican Fred Upton of the committee that oversees the FCC. Joyce’s note claims that it was improper of a reporter to want to know “How much money Sandwich Islands currently collects.” Common sense implies that information is crucial to judge the merits of the petition. Albert Hee and Sandwich Islands according to the Hawaiian press have strong political ties, but keep almost all information in the dark. The SI claim satellite isn’t available in Hawaii is no longer true so the entire petition could be moot. The FCC on the public facts is likely to completely cut off the company, unless a certain Senator intervenes.
|
|
Tuesday, 17 January 2012 00:32 |
Typical FCC filings are loaded with blacked out "redacted" material. Response and update. I believe how much money is going to what parties should be public. Also public should be how the money would be spent and what results can be expected. If it's a request for public money, all the information to determine whether it's a wise expenditure should be public. Often, there's no reliable source for some information other than the company involved.
In practice, many companies filing at the FCC black out far too much as "confidential" and the agency goes along automatically. This recently became notorious when some of the blacked out material was accidentally exposed by an AT&T lawyer in the TMo merger. The blacked out material from AT&T directly contradicted things their advocates had been saying. Much D.C. policy debate is dominated by the 2+2=5 crowd; one of their key techniques is hiding information.
Sandwich Islands Telecom is appealing a provision of the USF changes that limited reimbursement to $3,000/year for each home. They redacted basic information and I filed a Freedom of Information request with the FCC for the redacted material. There was also some out of date information in their filing that may make it moot. Sandwich Islands said satellite broadband was not available in Hawaii. I confirmed with Viasat that was no longer true. Satellite still has annoying latency and caps, but the speed is now 5 megabits plus, faster than most U.S. DSL.
|
|
Read more...
|
|
Tuesday, 03 January 2012 17:08 |
|
I filed a freedom of information request for the material redacted in a Sandwich Islands petition at the FCC to allow them to collect more than allowed in the recent USF proceeding. They have requested, and the FCC agreed, to hide from public view basic information like how much money they are receiving and how much they will lose. These are blacked over in the filing. Sandwich Islands is particularly controversial since they collect $10's of thousand per subscriber (I believe) and have been exposed in the Hawaiian press as having deep political connections. I think it's ridiculous for the FCC to hide basic information in policy proceedings, such as how much money is involved. I wrote a note to Austin Schlick, FCC General Counsel. I expect this will be buried or ignored, although everyone knows the FCC redacts far too much and it affects the policy discussion. Including AT&T/TMo.
|
|
Read more...
|
|
Tuesday, 13 December 2011 19:29 |
|
Jules Genachowski thoughtfully questioned the House bill to auction some broadcast spectrum. It would hurt the U.S. effort to use spectrum efficiently. Technology has changed and spectrum monopolies are increasingly inappropriate. Shared spectrum - think WiFi and white space super WiFi - typically supports 3-10 times as much wireless traffic as traditional telco mobile networks.
The more I learn about wireless networks as I consult on one the more I realize that heterogeneous networks are a crucial part of capacity design. The best engineers at Ericsson, Alcatel, and the networks themselves are very strong on this. LTE Advanced is built around "heterogeneous networks" with WiFi and femto offload playing a crucial role. Hetnets are a key part of the 3GPP LTE Advanced standards and both Ericsson's and Alcatel's roadmap.
The few experts on wireless in D.C. are starting to make themselves heard over the din of lawyer/lobbyists. If wireless capability is important, shared spectrum is the way to go.
Here are Jules comments, presumably authored by staff.
Over the last weeks and months, we have conveyed to Members of Congress and their staff concerns about provisions that would reduce FCC flexibility to maximize the overall value of freed-up spectrum, enhance spectrum efficiency, and promote robust innovation and investment. Several provisions of the House bill would tie the agency’s hands in ways that could be counterproductive, reducing economic value and hindering innovation and investment. One important example is the legislation’s seeming limitation on the Commission’s ability to accommodate new technologies, including those that use unlicensed spectrum, like super WiFi or machine-to-machine Internet connected devices. I encourage Congress to leave no doubt that the FCC can continue its policies to promote unlicensed spectrum use alongside licensed uses.
|
|
Read more...
|
|
|
Wednesday, 15 February 2012 17:18 |
|
CTIA gives 120K, AT&T $100K, Comcast's Mike Rose a board member. Brian Roberts and Steve Ballmer probably don't believe global warming is a crackpot conspiracy, but they provide the money for Joe Bast's "Heartland Foundation," which fights against climate science across the world. Angered by how their anti-science lobbying on climate, someone leaked the money list. It's led by some of the usual suspects: AT&T, Comcast, and Microsoft, as well as Pharma and other lobbying shops. Heartland has found telecom a lucrative niche. Steve Largent's CTIA, the wireless association, was among the largest donors. Steve follows the lead of Verizon and AT&T. "AT&T's" name needs to be added to the title Heartland's publication "InfoTech & Telecom News."
"Publication bias" distorts the public debate. Paid advocates who claim not to be lobbyists hold seminars for Congressional staff, scatter opeds across the D.C. media, constantly send out press releases and file literally thousands of comments at the FCC each year. Out of about 15 speakers at a D.C. university event, I identified more than half with financial ties to the carriers. One once respected public official took $200,000 from Verizon according to a lobbying filing. The professor who organized the event I believe has taken as much as six figures from the carriers but never disclosed how much he's been paid. This goes on constantly. Karl Bode is disappointed to see ex-representative Rick Boucher preening for AT&T http://bit.ly/ycKHyx The formerly respected Boucher should probably be added to the “don’t feed the troll” list alongside Scott Cleland, ITIF, IIA and others. Shills multiplying AT&T's positions are so common in D.C. honest people are confused.
Does Julius even know how much his Chief Economist Marius Schwartz has been paid by AT&T? Every reporter should be asking questions like that. |
|
Tuesday, 17 January 2012 03:15 |
Kevin Martin saw the problem. Follow the money and you discover that the Big Telcos - mostly Verizon and AT&T - net a billion or more each year from the new FCC changes. Begin by examining the reduction in ICC termination payments of about $4B and asking Cui Bono? Thoughtful analysis in the USF/ICC Report concluded that about $2B would likely pass thru to consumers, much as lower wireless prices. The $2B balance would mostly go to Verizon and AT&T, who have spent $100’s of millions lobbying on this. The report has a good discussion of how we can estimate where the money will go in Appendix I on page 632. The size of the Big Telco windfall has long been a key issue in ICC/USF. Kevin Martin’s USF/ICC proposal of 2008 - which was in many ways better than what Julius offered three years later - initially floundered on the issue of the size of the windfall to the Bells. Consumer advocates balked and I understand that Michael Copps and Jonathan Adelstein promised to back the consumer position Kevin needed the Democratic votes because his proposal was far too consumer-friendly for the Republicans. Nine days before the vote, Kevin told me he would be delighted to compromise on this; the consumer advocates agreed to support the proposal if he did. Copps and Adelstein ultimately refused to go along. My initial read was that AT&T refused to deal, but the definitive source on AT&T’s choices tells me he would have given Martin whatever he needed to get the deal done. Ultimately, they refused to go along and the three years since have cost consumers and the Big Telcos billions. The general conviction in D.C. was that Century and the other mid-sized carriers had blocked the deal, but I don’t think they had that kind of power of the votes of Copps and Adelstein. What I heard from the principals was contradictory. It’s quite possible that things fell apart because the decisionmakers didn’t understand what the players were offering. If what I heard directly and indirectly from Martin and Cicconi was true, it was a good deal that the Dems should have supported. It’s also quite possible that bitter personality clashes were the real holdup. The Dems thought Martin had blocked Adelstein’s renomination and communication was limited. Covering D.C. I’ve learned that personalities often do trump principle, even when the people involved are dedicated and honorable.
|
|
Read more...
|
|
Tuesday, 10 January 2012 00:16 |
|
FCC action went unreported. AT&T has every legal right to not answer reporter’s questions, but does have to tell the FCC about the reliability of their networks. A $1.8M “voluntary contribution” got them off the hook last March for a string of omissions. AT&T beats back most enforcement efforts by making clear they are ready to spend $millions on lawyers to tie things up for years in court. Regulators typically cut a deal that has the company denying any guilt or liability. Verizon and SBC paid $100’s of millions for blocking competitors back when that mattered. Everyone agreed it was cheaper for them to pay than to obey the law.
Cutting executive bonuses when a company violates regulations would be far more effective. If Randall’s $20M/year were reduced enough to notice, AT&T would be far more diligent about obeying the law. It actually works the other way: to the extent ignoring the law is profitable, Randall’s bonus goes up.Judicial pressure may make similar deals tougher in the future. In security laws, judges are refusing “consent decrees” where the guilty party admits nothing and makes the problem to disappear by a payment that’s less than the company spends on private jets. AT&T may go over the line a little more often, but most large companies will do what’s profitable even if it “stretches” the law. The NY Times has shown how the big banks are “repeat offenders” and it would be easy to find the same on other companies.
|
|
Read more...
|
|
Wednesday, 14 December 2011 20:58 |
Truth or Dare? AT&T would rather give up 12 Mhz of precious spectrum than to allow their phones to work on competitors’ networks. That’s according to VP Joan Marsh in an official document Currently, AT&T’s LTE phones can’t work on 700 MHz LTE networks (Lower A Block) owned by regional carriers such as Vulcan, Cavalier, PCS and Cox. The FCC is seriously considering a petition by those carriers to make interoperability a condition of the spectrum transfer. AT&T and Verizon LTE phones apparently are not compatible either. AT&T is right about real problems of cost/device size in supporting all the 19! frequency bands used for LTE around the world. I’m working on a story Cold Equations: All Bands, All World LTE Phone an Inch Too Far about those issues. It looks like the LTE market will require different phones for the U.S., Europe, and Asia. The phones would support the major bands in their territories but would fall back to 3G speeds on other continents. Fortunately, there is only modest cost in covering all the U.S. bands. Each additional band requires less than $1 in parts and about 10 square millimeters of board space. That may not even be required, because a modest change in band plans might solve any problems without additional hardware. Phones that work on multiple networks have a larger market, meaning a likely result is lower per phone costs, not the much higher costs Ms. Marsh asserts. I’ve asked AT&T for an engineering breakdown of the necessary parts so I can price out the costs precisely, or any other data that implies the cost would be high. Interoperability across LTE networks is a crucial step for future competition. If the FCC required phones to cover all the 700 MHz bands, people could take their phones with them to one of the other LTE networks being constructed AT&T hasn’t provided me any evidence the costs would be large. If the costs are moderate, the right decision is obvious. The Commission is looking closely at this one. Chief of Staff Eddie Lazarus, Amy Levine, and Chief of the Engineering Bureau Julie Knapp (with three engineering staffers) met with engineer Paul Kolodzy and the lawyers for the alternate wireless carriers. Such senior FCC staffers don’t get involved unless they are taking this seriously. Senator Rockefeller wrote the FCC about the advantages of interoperability for public safety. Free Press added their comments. Sara Jerome reports Mignon Clyburn has an effective veto and is considering exercising it.
|
|
Read more...
|
|
Friday, 21 October 2011 09:21 |
$400M has been given by USF to a politically connected Hawaiian company, Sandwich Islands Communications, as much as $13,000/year/line. Everyone close to FCC policy the last decade knows the issue. Sandwich Isles is used in academic papers as an example of how distorted the program has been. They only have a few thousand customers, most of whom could have phone service for a very small fraction of what Albert Hee and friends - many politically connected - collect from the government.
Given the issues with the company, giving them a dedicated subsidy is the last thing one would want to do with the USF replacement program. But the State of Hawaii has hired an expensive DC lawyer and demanded special treatment of the “Hawaiian Home Lands,” based on other tribal programs. The filing doesn’t point out that the carrier of the “Hawaiian Home Lands” is Sandwich Islands.
Nor does the filing list how many thousands in campaign contributions went to Senator Inouye, who I’m told is also sending a plea to give them more money.
|
|
Read more...
|
|