FCC Has No Authority to Regulate Internet, Verizon EVP Says

The Federal Communications Commission does not have the explicit power to regulate the Internet, and should wait for Congress to grant it that authority, says Tom Tauke, Verizon EVP. The statement is not as controversial as some might think, as Comcast has challenged such authority in federal court, and many observers think Comcast will prevail.

Comcast has challenged the FCC’s authority to punish it for throttling the bandwidth of customers using bitTorrent programs to share huge files.

“The authority of the FCC to regulate broadband providers under the so-called ‘Information Services’ title, or Title I, of the Communications Act [is] at best murky,” Tauke said. “In confronting this hard question about jurisdictional authority, we [are] also faced this policy question: If Title I and Title II don’t apply to the Internet space, what are you saying about the authority of government in this space?

“In a market developing at these speeds, the FCC must follow a piece of advice as old as Western Civilization itself: first, do no harm," said Tauke.

“Today about 96 percent of Americans have access to at least two providers of wireline broadband and as many as three wireless providers, and more than 55 million Americans can connect to a broadband network capable of delivering at least a 50 Mbps stream," Tauke said.

AT&T, Cable Companies, Intel, Microsoft Back Broadband Stimulus Application

A newly-formed coaltion of cable companies, AT&T, Intel, Microsoft and industry trade and non-profit groups have created a "Digital Adoption Coalition" to apply for funding under the "broadband stimulus" program.

The Digital Adoption Coalition includes AT&T, BendBroadband, Bresnan Communications, Bright House Networks, Cablevision Systems Corp., Charter Communications, Comcast, Cox Communications, Connected Nation, Eagle Communications, Inc., Dell, Intel Corporation, Mediacom Communications Corp., Microsoft, Midcontinent Communications, the National Cable & Telecommunications Association (NCTA), One Economy Corporation, Sjoberg’s Cable TV, Suddenlink Communications, Time Warner Cable, US Cable Group, and USTelecom.

To improve broadband access, services, and technology in approximately 250,000 low-income households nationwide, the coalition would work with the U.S. Department of Housing and Urban Development to increase broadband outreach efforts in public housing, project-based Section 8 properties, and multi-family assisted communities.

One Economy, a global nonprofit, filed an application with NTIA on March 15 on behalf of the coalition for funding through the Broadband Technology Opportunities Program (BTOP) to support digital literacy training, discounted computers, and project administration.

Apple iPad Niche Awaits Discovery

Google wasn't sure what its business model might be when it launched its search engine. Apple probably isn't quite sure what people might do with its iPad, either.

Apple's  "iWork" suite positions the iPad as a road warrior device, at least for users who don't mind the lack of multitasking or cameras, and mostly want access to email and Web browsing. But some might argue that is precisely what some users already do, but using smartphones.

Or will the iPad wind up being a media playback device more akin to an iPod "touch" with a much-larger screen? Or, instead of revealing or creating the existence of a new and sizable niche between the touchscreen smartphone and the netbook, perhaps the iPad might, in either the current or a later iteration, reset expectations for what a "netbook" or "notebook" PC actually is, and ought to be.

That seems most likely for relatively casual users, at least at the moment. Previous attempts to create a new "tablet" market failed. Apple's Newton was a flop, and Microsoft's "Tablet PCs" didn't do much better. But those devices were aimed at business users.

The consumer market for "tablet" style is probably best envisioned as a larger-screen version of the iPod touch and competing media players, the Kindle and its many e-reader readers. Media consumption, not "computing," could be the new niche.

The ability to convince traveling business users to lug one more device with them does not seem promising. On the other hand, the iPad will require a backpack; it doesn't fit in a pocket or most purses.

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T-Mobile USA's New Broadband Network Will Cover 180 Million, Offer Speeds of 21 Mbps or 22 Mbps

T-Mobile USA says it expects to have 100 metropolitan areas in the United States covered by its upgraded high-speed wireless network, which should operate up to about 21 Mbps or 22 Mbps in the downstream direction, by the end of 2010.

The new HSPA-Plus network is a "3G" technology that operates at speeds very comparable to 4G alternatives, and might very well give T-Mobile the fastest national network, for at least a while, by the end of the year.

HSPA Plus will cover roughly 180 million Americans by the end of the year, T-Mobile USA says. The technology is already live in some regions, including the New York metropolitan area, the Washington DC suburbs, and will be coming soon to Los Angeles.

Oddly, many observers continue to insist there is "no competition" in the U.S. broadband market. Aside from cable operators and telcos, there now are going to be four mobile broadband networks in national operation by the end of the year, offering speeds equivalent to, or faster, than is available in many markets from terrestrial providers.

It doesn't appear that consumers view the iPad primarily as an e-book reader, but more as a media appliance, a comScore study suggests.

Though 37 percent of respondents indicated they were “likely” or “very likely” to read books on the device, nearly half indicated a high likelihood of using the iPad for browsing the Internet (50 percent) and receiving and sending email (48 percent).

More than one third said they would use it for listening to music (38 percent), maintaining an address book or contact list (37 percent), watching videos or movies (36 percent), storing and viewing photos (35 percent) and reading newspapers and magazines (34 percent). says comScore.

“These devices have the potential to be incredibly disruptive to the way consumers currently access digital content," says Serge Matta, comScore EVP.

The big issue is whether there exists a sizable market for a digital appliance somewhere between a netbook or notebook PC and an iPhone. In that regard, when asked whether they would use an iPad “instead of” or “in addition to” other digital devices, the highest amount of potential substitution was for the iPod Touch (37 percent).

Conversely, despite widespread belief that the iPad might threaten netbook adoption, only 22 percent of consumers said they would use an iPad in place of a netbook.

The most important device attributes that consumers indicated they would like to have included in the iPad were: ability to use multiple applications/programs at once (43 percent), having a screen the same size as a laptop or desktop computer (37 percent) and having a built-in camera (34 percent). Among iOwners, the percentages were substantially higher at 56, 66 and 51 percent, respectively.

Some 34 percent of males indicated they were likely to use the iPad for playing action, strategy or role-playing games, as did 28 percent of females. More than half of those 18 to 24 year olds (53 percent) said they were likely to use the iPad for gaming.

Younger consumers indicated a high willingness to pay for news and magazines specially formatted for e-readers. About 68 percent of 25 to 34 year olds and 59 percent of 35 to 44 year olds said they were willing to pay for this type of content.

If comScore's results prove to be correct, the iPad will emerge as a media appliance.

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CTIA Reports Gains, As It Always Does

Almost nothing is more predictable than the CTIA reporting that revenues, subscribers and wireless data increased over the last six-month period. In fact, many of us cannot remember a six-month period where that has not happened. So it is that the CTIA says wireless data service revenues increased 25.7 percent from the last half of 2008 to reach more than $22 billion for the last half of 2009, CTIA-The Wireless Association says.
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Wireless data revenues now represent more than 28 percent of all wireless service revenues. The number of data-capable devices has grown to 257 million units, up from 228 million at the end of 2008.

About 50 million of these devices are smart phones or wireless-enabled PDAs and nearly 12 million are wireless-enabled laptops, notebooks or aircards.

More than 822 billion text messages sent and received on carriers’ networks during the last half of 2009, amounting to almost five billion messages per day at the end of the year.

As of December 2009, the industry survey recorded more than 285 million wireless connections. This represents a year-over-year increase of more than 15 million.

Also, wireless penetration is now equal to more than 91 percent of the U.S. population, CTIA says.

Other highlights of the survey include wireless customers using more than 1.12 trillion minutes in the last half of 2009, up 38 billion from the last half of 2008—and breaking down to 6.1 billion minutes-of-use per day. Wireless service revenues for the last half of 2009 amounted to almost $77 billion—up from a little more than $75 billion in the last half of 2008.

AT&T Now Sells Triple-Play Bundles With Mobile Voice, Rather than Landline Voice

AT&T now allows consumers to buy a $99 triple-play bundle that allows customers to choose wireless as their voice option, rather than a fixed landline voice service.

The not-unexpected move shows both the appetite end users have for such packages, as well as AT&T's decision that now is the time to put more emphasis on gluing wireless users to the landline services, and less emphasis on using broadband and television to slow the rate of wireline erosion.

That isn't to say the original impulse is no longer important. It remains important for many customers. But the new bundles reflect the growing demand for wireless voice in triple-play bundles, rather than fixed line voice service.

AT&T "U-verse Choice" bundles start at $99 a month for three AT&T services, including U-family; U-verse High Speed Internet Pro (up to 3 Mbps downstream); and a choice of AT&T Nation 450 wireless voice or U-verse Voice 250 home phone.

Other packages featuring faster broadband speeds and more wireless or home phone calling minutes or more TV channels for $127 to $150 a month.

Where U-verse service is not available, customers can bundle DirecTV service with broadband and voice.