The New FCC and the Public Interest Where To Next

1. 1 The New FCC and the Public Interest � Where To Next? TATOA Conference 2009 Houston, Tx. Joseph Van Eaton August 7, 2009

2. 2 Overview Your New FCC Bellwether Issues for Local Govts? PEG CTIA Petition Broadband Protecting Local Interests

3. 3 The New FCC

4. 4 Changes? Communications Daily Report: Chairman Genachowski �plans to put a substantial emphasis on process� and ensure in the first instance, work is done through FCC bureaus and offices� �[I]mmediate result is that the FCC probably won't make major policy calls in August.� Emphasis on �broadband - sometimes to the exclusion of other�issues considered less time sensitive� Andy Schwartzman of the Media Access Project states focus on broadband �is going to make it hard to maintain momentum on a lot of other fronts.�

5. 5 Bellwether Issues for Local Govt Section 621 (franchising) reconsideration petition In states that adopted franchising rules, can PEG fees be used for operating costs? Are fees imposed to defray the cost of regulation offset against the franchise fee? What can PEG fees be used for? Petition for Declaratory Ruling, Docket 09-13 Two cases: Challenge to AT&T Channel 99 Solution Challenge to Comcast Digitization of PEG Channels Broadband Petition

6. 6 Bellwether Issues for Local Govt Challenge to AT&T Model: Is AT&T obligated to provide a channel that is equivalent in quality and accessibility to other channels it provides on a commercial basis? Challenge to Comcast: Does PEG have to be on basic? Can PEG be provided in a digital format when other basic channels are in a digital format? In Both Cases: Can an operator impose cost or other burdens that make it more difficult for viewers to receive PEG channels?

7. 7 Bellwether Issues for Local Govt CTIA Petition Asserts localities are unreasonably delaying deployment of wireless towers Asks FCC to establish national deadlines for action on zoning applications 45 days for collocation 75 days for any other application Deadlines do not depend on size, location, number of towers, or complexity of safety/siting issues

8. 8 The National Broadband Plan The American Recovery and Reinvestment Act of 2009, H.R. 1, directed the FCC to produce a national broadband plan within one year. (Section 6001(k)(1)). The FCC released a Notice of Inquiry on April 8, 2009 in docket # 09-51. (FCC 09-31) Initial comments filed June 8, 2009. Reply comments filed July 21, 2009. The FCC launched http://www.broadband.gov

9. 9 Can Public Interest Viewpoints Be Reconciled?

10. 10 Broad Generalities Localities/PEG coming from model Where person who owned facilities also controlled content; BUT Localities could create funded �public spaces� within the network, collect rents for use of public property End user equipment controlled by the network Localities control system design/build-out Designed to local needs

11. 11 Broad Generalities Internet coming from model Owner of pipe had to provide open, non-discriminatory access to all (common carrier) Limited owner control over content No special rights of access to anyone Network universally available, Design up to owner; anything attached to the network Controlled at nat�l/state level Subject to local/state taxes

12. 12 Broad Generalities Public Interest groups focused on broadcast media coming from model Owner of means of communication (spectrum) is government It is licensed to broadcasters for no fee BUT Broadcaster must ascertain community needs Programming must take account of local needs License will not be renewed if public obligations aren�t satisfied

13. 13 Broad Generalities Localities coming from model Where person who owned facilities also controlled content; BUT Localities could create funded �public spaces� within the network End user equipment controlled by the network Localities control system design/build-out Designed to local needs Internet coming from model Owner of pipe had to provide open, non-discriminatory access to all (common carrier) Limited owner control over content No special rights of access to anyone Network universally available, Design up to owner; anything attached to the network Controlled at nat�l/state level Public Interest groups focused on broadcast media coming from model Owner of means of communication (spectrum) is government It is licensed to broadcasters for no fee BUT Broadcaster must ascertain community needs Programming must take account of local needs License will not be renewed if public obligations aren�t satisfied

14. 14 What Happens When Models Break Down? Only a very small portion of the network must comply with common carrier principles Wireless control of network equipment Broadcasters face limited renewal scrutiny; consolidation encouraged Franchise fees on only a portion of the network�s revenues: what happens with Internet delivery of video programming? Tax/fee definitions fail to keep up with networks/services Localism removed by state laws in cable; broadcasters rarely held to public interest obligations

15. 15 Proceeding Participants Local Franchising Authorities and PEG Groups: NATOA, Alliance for Community Media (ACM) and others Industry Wireline: Verizon, AT&T, Level 3, Qwest, USTA Wireless: CTIA, Verizon Wireless, Sprint Nextel Cable: Comcast, Cox, Time Warner, NCTA Other: Google, Clearwire Public Interest Free Press, New America Foundation, Public Knowledge, Media Access Project, Consumer Federation of America, Consumers Union

16. 16 How Should The FCC Define �Broadband Capability? NATOA/ACM: Aspire to 100 megabits per second 1 gigabit per second symmetrical, with scalability to 10 gigabits per second. Speeds should be measured by what consumers actually receive and support multiple integrated voice, video and data applications Free Press: Internet not just as an information service but an information service with a telecommunications service transport component. Comcast: Basic (256 Kbps downstream and upstream), Current Generation (600 Kbps downstream and 55 Kbps upstream), Next Generation (12 Mbps downstream and 2 Mbps upstream), Next Generation Advanced (50 Mbps downstream and 10 Mbps upstream) Next Generation Commercial (at least 100 Mbps).

17. 17 How Effective and Efficient Are Existing Mechanisms for Broadband Access? NATOA/ACM: The federal government�s almost total reliance on market forces has not served the nation well. Cable & local franchising very effectively resulted in broadband accessibility. Free Press: The FCC�s deregulatory decisions have failed. Comcast: Marketplace has been remarkably successful. 92% of American homes have access to cable Internet service. Verizon: Most Americans have the benefit of real broadband competition. CTIA: Need to preempt local government zoning authority over cell towers

18. 18 What�s the value of �open networks� and how should �open� be defined? NATOA/ACM: Consider access, interconnection, nondiscrimination, and infrastructure sharing requirements. Vigorously enforce open network principles. Free Press: Network neutrality and nondiscrimination should be the cornerstones of America�s broadband policy, and extend to all broadband platforms, including wireless. Verizon: Committed to openness. FCC should not move backwards by imposing a broad non-discrimination principle that would effectively impose common carrier obligations. CTIA: FCC�s Broadband Policy Statement doesn�t apply to wireless and should be so extended. Non-discrimination will harm networks and consumers.

19. 19 Broad Agreements, Broad Areas Not Yet Addressed Broad agreement: industry vision leads nowhere. Broad agreement: cross-platform rules are critical Unclear: how do we define a public �green space�? Is it necessary? Unclear: How do you fund a public green space? Unclear: What is the role of localism? How do we assess local needs? Who is responsible for satisfying them?

20. 20 Question: is there a cross-platform model that can build upon the beneficial elements of all our public interest models (including community ascertainment requirements) to achieve a sensible policy for the broadband age?