By Scott M. Fulton, III and Tim Conneally, Betanews
There are two major issues on the table with regard to the creation of a national broadband plan. The two sides of the debate want their respective issues to be the focus, including in voters' minds.
The new chairman of the FCC, Julius Genachowski, and the incoming Democratic leadership would prefer that you be interested in the issue of ensuring public access to high-speed Internet service, particularly by preventing private interests from designing the system in such a way that they can charge premiums to select customers. This is at the heart of the net neutrality issue. The Republican "opposition" -- but the side which brought the whole matter to the floor in the first place -- would prefer you be interested in enabling multiple service providers to obtain national franchise licenses to set up broadband Internet service anywhere in the country at competitive rates, without having to pay municipal fees and obtain licenses for every square yard of space in America separately. That's the heart of what's now being called the open competition issue.
Depending on who has control of the floor and the microphone at this morning's open FCC hearing, you may hear both sides of this issue or you may hear just one. The meeting is scheduled to begin at 10:00 am this morning, though when Kevin Martin was in charge, Commission hearings often started late.
9:33am PT: The commissioners are customarily glad-handing and presenting awards to each other. The "important part" of this particular meeting has drawn to a close...We at Betanews are going to return to the FCC's activities today with the Technology/Applications and Devices Workshop at 1:30 ET where Microsoft and Google are expected to make presentations.
9:19am PT: The public does not have online access to the majority of the issues facing the FCC as they're not docketed in the current online filing systems.
9:17am PT: A new internal FCC Web site called Reboot.FCC.gov has been rolled out for employees to discuss and connect on issues. It will eventually be rolled out to the public.
9:12am PT: Semi-ironically, the FCC wants to "Modernize" its own communication techniques. This involves all the updates made last week to the FCC's interaction with the public in the online space: the RSS feed on FCC.gov, the FCC's blog, Twitter, Youtube, all handled by a "small, but focused" New Media team.
9:09am PT: Over the next five years, all of the FCC's disparate licensing, comment and complaint filing systems will be streamlined and consolidated. Next month, the improved Electronic Comment Filing System will debut, which includes enhanced search and accessibility.
9:03am PT: The final report is about reform efforts in the FCC, presented by Mary Beth Richards of the Special Counsel for Reform.
8:57am PT: The FCC's request for a definition of broadband received 68 "substantive" comments to help shape the commission's picture of what broadband actually is. Not that huge of a number, really, but they are likely discounting a large number of entries.
8:52am PT: Over 4,000 people have participated with Online FCC workshops thus far.
8:51am PT: Over the next few months, the Broadband Team will be reporting on the factual state of play, where broadband is, and where it will be in the next few years. In November, they will move into the problematic areas and move immediately into their solutions.
8:48am PT: Blair Levin of the Broadband team, that will be giving the presentation on devices later this afternoon will now be taking the stand.
8:40am PT: Pardon this momentary break, we're experiencing technical difficulties. The FCC's servers have apparently "reached capacity" and we're trying to make our way back in.
8:15am PT: John Leibovitz [sp?] takes the floor. Expands the context of the report to include broader aspects of the ecosystem.
NOI asks whether the framework for analyzing competition is sufficient, up to date. Traditionally used a four-part framework, is this the best framework out there? Is this the most state-of-the-art, analytical approach? Quantitative data, how can it be more precise? Questions about wireless market segments not included in previous reports -- spectrum, backhaul, towers, edge markets, content commerce, all of which rely upon mobile services to reach market.
General outline asks about specific topics: how competitive dynamics affect consumers, relationship between competition and ongoing investment, how wireless competition varies across geographies. Invites many stakeholders, including consumers themselves and software developers, plus such groups as device manufacturers and tower and backhaul providers.
8:09am PT: Secretary announces presentation on Wireless Competition Report.
James Schlichting takes control of the presentation, announcing three deputies and staffers. Two-part presentation, first part reviews reports on the status of telecom and media sectors, how efficient are those reports?
Paul de Sa, Chief of the Office of Strategic Planning and Policy Analysis. Commission is required by Congress to report on various sectors of the industry. Five categories of reports, including the wireless sector. Opportunity to implement a consistent analysis of competition among the various sectors.
Proposed approach is data-driven, relying on facts, not assumptions. Reflecting the actual experience of consumers, customers, across appropriate customer segments.
8:05am PT: Genachowski: Innovation is core to the FCC's mission. "We're at the beginning of a wireless revolution, the first inning of a set of developments that will be so important to our country."
Transformation from mobile voice to mobile broadband, using smart, mobile computers "that can do almost anything at all." Smartphones may outsell PCs by 2011. "It is essential that the US become the leader in this wireless marketplace globally." Impossible to forecast social impact on Americans, but innovation will support the great companies and industrial segments of tomorrow. Health care, innovation, energy, public safety all depend on this development.
How spectrum is licensed, how interference is defined, how equipment is licensed, how tests are authorized -- all have an impact on how the wireless marketplace will develop. PCS auctions, creation of "unlicensed regime" for Wi-Fi, Bluetooth, models of FCC successes. There are also models of FCC failures.
"It's important to note that the nature of innovation is not constant." Digital era allows for greater collaboration, rapid innovation, and shorter time-to-market. Created a new generation of innovators.
Vote on NOI: Unanimous.
7:59am PT: Commissioner Meredith Attwell Baker takes the floor.
Pleased that this will be the first vote she casts as a commissioner.
Hope to acquire a comprehensive understanding of developments that promotes better and more efficient use of spectrum. Worried about hindering future business models' growth. Unparalleled innovation and growth in wireless over the past 10 years. $22.8 B per year invested by the industry on broadband services. "We stand on the verge of the next generation of wireless broadband products," and government should be careful not to regulate too much and hinder that growth.
Questions whether stakeholders will be able to yield substantive responses. Refrain from imposing burdensome regulatory obligations on industry.
7:56am PT: Commissioner Mignon Clyburn takes the floor.
"The wireless marketplace continues to evolve." Extent to which inquiry will lead to greater competition, will only benefit the consumer.
Cost factors associated with re-allocation of spectrum. NOI recognizes that re-allocation is an ongoing challenge and "a handicap on wireless innovation." Item raises appropriate question on how better to manage spectrum interference.
7:53am PT: Commissioner Robert McDowell takes the floor.
Wireless market appears to be robustly competitive, with 95% of consumers surveyed having a choice of at least four choices of carrier. Choice has been going up, so wireless penetration has been broad and quick, even in the midst of "the worst economy in decades." $80 B to be plowed into capital expenditures to make broadband services faster, more affordable. No other sector in our economy can make such a claim.
Shows the success of "how a light regulatory touch...works." "Where we go from here is not yet clear, but where we have been is clear." FCC's long-standing policy to let market forces foster their own development in services, has led to remarkable advances. So FCC should proceed with care, attracting more private investment capital rather than deterring it.
A 30-day period is too short a window for public response, possibly shortening the window for meaningful input.
7:48am PT: Seeks to identify the retail market segments that should be examined. Seeks additional data on both upstream (infrastructure) and downstream (content) markets.
Will consider a notice about consumer information and disclosure, so consumers will receive more and better information about consumers making purchasing. "We have not done much of a job" in this department, things "could have been better, sooner." Monthly bills are a regular agony for consumers, more so for what they fail to disclose and the amount of paper used to disclose it. Better wireless geographic maps would continue to be helpful.
7:45am PT: Increasing complexity, but "open access" should best promote innovation. What can we learn from the Internet model, where open platforms has spurred innovation and productivity?
"As we enable wireless technologies and services, we enable America to meet and master many challenges," said Copps.
Expanding the scope of the annual competition report to Congress. Wants to expand the depth to become more granular [both Democrats and Republicans will be pleased by this part, but I'm wondering if this is the bone the new FCC is throwing to chase the GOP off the trail of national franchising.]
Commission has the responsibility to stop playing "unhelpful games" with altering spectrum allocation screens, and to go back to ensuring competition rather than providing a free path for big service providers.
7:42am PT: Declining commitment to basic technology research and development, which Copps calls a "tsunami." Blames "speculators on the make" as triggering the fall in value of investment, then with government withdrawing its interest, that constituted a "double-whammy" which has impacted wireless industry growth. "We need to understand these things, and we need to act upon them."
Seek to understand how key innovations are occurring in the wireless chain. What has gone wrong? What are other countries doing to promote innovation? Improving the Commission's understanding and analysis of these matters will help it promote investment.
7:39am PT: Commissioner Copps takes the floor. Three NOIs under consideration go to the heart of main goal of protecting consumers. Commends Genachowski for bringing this to the forefront immediately.
"Lay the groundwork for sound public policy making."
Innovation: 21st century will be about "stunning and transformative innovations," more so than in the 20th century. Wireless industry deserves recognition and credit for what it has accomplished, "but mark me down as one who believes that we have only glimpsed the beginning."
We look to industry for guidance, but innovative public policy should be the handmaiden for guiding private enterprise.
7:36am PT: How can spectrum be used more efficiently? "Wireless networks are evolving to more IP-based and platform architectures." What role can the Commission play in encouraging further development and investment in these areas? Quick mention of the licensing program and possible reform in that area.
7:35am PT: Presenting the presentation on wireless innovation is James Schlichting, acting chief of the Wireless Telecommunications Bureau of the FCC. He passes the floor to Deputy Chief Joel Taubenblatt.
What changes can the FCC make to its policies to encourage more outside participation in the development of wireless services? That's the subject of the proposed Notice of Inquiry (NOI) under discussion first.
The NOI wants to seek information about the state of wireless innovation, says Taubenblatt. What metrics and data sources should the FCC be treating as important, especially with regard to what the industry treats as important? [This is a particularly important issue to Republicans in Congress, who have argued in the past that the previous FCC spent too much money and resources investigating metrics that didn't really matter to real businesses.]
7:29am PT: Genachowski begins by praising the recently deceased Dr. James Marsters, co-creator of the TTY, as a model for consumer advocacy in the telecommunications industry.
Competition, he says, is essential to ensuring Americans' continued access to the information they need to better themselves, especially through education. Credits the iPhone, Pre, and BlackBerry as among the classes of mobile devices that are forcing the issue of ensured mobile broadband to the forefront.
Secretary now formally introduces the day's agenda.
7:22am PT: Today's hearing is the first full meeting to include newly appointed commissioners Mignon Clyburn and Meredith Attwell Baker.
7:18am PT: Introductions have begun reasonably on-time, and the formal discussion has yet to begin.
Copyright Betanews, Inc. 2009
Perhaps the headline here should be, "HTC doesn't acquire Palm." In any event, our question from last week, "What if nobody wants Palm?" has just been rendered moot: Hewlett-Packard has just announced it has agreed to acquire the assets of Palm Inc. for $5.70 per share, or approximately $1.2 billion.
