During 2007, the U.S. broadband market continued to grow, adding nine million household subscribers, according to Forrester.  In 2008, growth will persist, but net subscriber adds will drop to only 7.6 million households, it predicted.  As penetration reaches the market saturation point -- 70% according to Forrester estimates -- consumer need for bandwidth and faster connection speed will continue to mount, and Internet service providers (ISPs) will respond with new offerings.  Fatter, faster data pipes will enable more consumers to experience high-quality video online, and more symmetrical services will fuel a new wave of user-generated content sharing.  Details.

Yahoo has extended a deadline for nominating candidates to its board of directors, buying it more time to find a way to stave off Microsoft’s takeover bid, currently valued at $41.7 billion, reported USAToday.  It continued: The announcement Wednesday came as Yahoo stepped up discussions with Time Warner about acquiring or forming a joint venture with its AOL division.  Yahoo also has been in discussions with media conglomerate News Corp.  Details.  

FCC Chairman Kevin Martin has asked his fellow Commissioners to be prepared to vote at the agency’s March 19 meeting on changes regarding how the agency collects data on broadband service, as well as on a related report to Congress on the status of advanced services deployment in the country, reported TR Daily.  It continued: Among the other items “white copied” for the meeting is an order that would harmonize power limit rules across bands.

FCC Chairman Kevin Martin scuttled a deal between the White House and Senate Majority Leader Harry Reid (D-NV) designed to award new terms to incumbent FCC commissioners, Republican Deborah Taylor Tate and Democrat Jonathan Adelstein, according to Multichannel News, which further reported: Martin rejected the deal because it required him to pledge to Reid in writing that he would resign his FCC in January 2009 if a Democrat were elected president in November.  “The chairman is not prepared to step down on a certain date.  He is not willing to say that he will automatically resign at a certain time.  He is not willing to say he will do it,” an FCC spokesman said.  Martin declined to accept Reid’s terms because he is considering remaining at the FCC for an unspecified period of time next year, even if he is no longer chairman, according to sources.

The Senate passed a bill to ensure that VoIP phone service providers can deliver 911 service to their customers, according to Broadcasting&Cable, which further reported: The IP-Enabled Voice Communications and Public Safety Act would give VoIP providers the same interconnection access on the same terms as traditional carriers to ensure that 911 calls reach a local operator and that the operator can also determine the source of the emergency call – so-called enhanced 911 service.  The bill must now be squared with a similar bill already passed in the House before it can be sent to the president for his signature.  Details.

Philadelphia must specify its goals of it wants to save its municipal Wi-Fi project, Communications Daily quoted Datamonitor analyst Ben Madgett as saying.  With EarthLink recently saying it would put its muni Wi-Fi business up for sale, Philadelphia should “find a reliable vendor to buy the network, and have the city commit to being an anchor tenant,” Madgett said.  “While this idea has been floated, the jury is still out; there has also been some talk of the city taking ownership of the network and hiring a firm to operate it, but it seems like a dangerous business plan to spend millions of tax dollars on such a risky initiative.”

A top staffer on the House Energy and Commerce Committee predicted that the FCC Commissioners can be expected to be asked to return to testify before the committee “several more times this year” as part of the panel’s ongoing oversight efforts, according to TR Daily, which further reported:  Amy Levine, the committee’s senior majority counsel, also said there might be a hearing on the net neutrality legislation recently introduce by telecommunications and the Internet subcommittee Chairman Edward Markey (D-MA).  Over in the Senate, the Commerce, Science, and Transportation Committee will have “continuing interest in the 700 MHz auction,” as well as issues including oversight of the National Telecommunications and Information Administration, universal service, calling-card fraud, and modernizing the FCC, said the committee’s senior majority counsel, Jessica Rosenworcel.

Bipartisanship as a key to Washington success was the theme of a reception hosted Wednesday evening by former U.S. Sen. Conrad Burns a Republican from Montana who was defeated for re-election in 2006.  A strong advocate of rural broadband and frequent speaker at WCA events, Burns was flanked at the reception by two of his longtime colleagues on the Senate Commerce Committee:  Current Chairman Daniel Inouye, 83, a Democrat from Hawaii, and Vice Chairman Ted Stevens, 84, a Republican from Alaska, recalled their friendship across party lines for nearly five decades since their states were admitted into the U.S.  Four of the five FCC Commissioners attended also.  I greeted the key public officials and co-hosts from Burns’ lobbying firm Gage Consulting, and participated in good conversations regarding developments in broadband wireless, a matter of keen interest in Washington policy circles.

FCC Chairman Kevin Martin questioned Internet service providers who control consumers’ Web access over their networks, and suggested the agency could intervene against the practice, according to Washington Post, which further reported: Martin made his remarks at a hearing held at Harvard University to address complaints that cable provider Comcast restricts the flow of content through file-sharing service BitTorrent.  The issue is among the most hotly debated in technology.  “These are very significant issues, and we don’t take those allegations lightly,” Martin said in opening remarks.  “The commission is ready, willing and able to step in and correct any practices that are ongoing today.”  Details.  WCA Counsel Paul Sinderbrand provided a detailed summary of the hearing to appropriate WCA committees.

The U.S. could realize an impact of $134 billion annually from a modest increase in broadband adoption, according to a new report by Connected Nation.  The report measures the national economic stimulus of broadband legislation currently under Congressional consideration and details the potential state-by-state impact of legislation to accelerate broadband access and use.  “The beauty of the broadband legislation currently in play in the midst of Farm Bill negotiations is that it would provide a jolt to the nation’s economy in the near term – to the tune that rivals the recent economic stimulus package,” said Brian Mefford, Connected Nation’s CEO.  In 2007, the U.S. House of Representatives voted unanimously to pass such legislation, and the U.S. Senate passed a similar proposal as part of a renewal of the Farm Bill.  The Senate and the House are working to complete negotiations on the Farm Bill, including rural development and broadband elements, this month.

There is substantial sympathy for WCA’s position outlined in a recent filing in the FCC’s “net neutrality” proceeding, particularly among wired and wireless network operators and the various trade associations.  Repeating its earlier position in the docket, WCA urged the Commission not to take any action that would compromise the flexibility wireless broadband network operators must have to manage network traffic for the maximum benefit of all network users.  To that end, WCA urged the Commission to resist the call for an across-the-board definition of “reasonable” network management practices, and to instead leave the matter to case-by-case enforcement.  “While the record includes the usual complaints from certain public interest groups, as a whole the comments are fairly balanced,” commented WCA Counsel Paul Sinderbrand of Wilkinson Barker Knauer, who reviewed the comments.  “If anything, they appear to lean more towards the cautious middle ground WCA has advocated, not the more dramatic Commission intervention recommended by Free Press and Vuze.”  Reply comments are due Feb. 28.

Rep. Edward Markey (D-MA), chairman of the House Subcommittee on Telecommunication and the Internet, has introduced a bill aimed at preserving the open architecture nature of the Internet.  Co-sponsored by Rep. Chip Pickering (R-MS), the Internet Freedom Preservation Act (H.R. 5353) says it is the policy of the U.S. to “maintain the freedom to use for lawful purposes broadband telecommunications networks, including the Internet, without unreasonable interference from or discrimination by network operators.”  Markey said the bill “tasks the FCC with the job of conducting an assessment of broadband practices and consumer rights.”  It requires the Commission to hold broadband summits and to report to Congress on its findings and recommendations for further action.  Details.

As part of the intention to make the FCC’s procedures more transparent in the wake of pressure from Congress, FCC Chairman Kevin Martin said he wants the agency to officially announce items he has circulated for action at monthly meetings, according to TR Daily, which further reported: Martin told reporters he plans to talk with his fellow Commissioners about putting out a public notice each month when items are circulated for meetings.  Under traditional FCC practice, items begin circulating three weeks before a meeting.  The action would be the latest step toward making the agency’s procedures more transparent.  Since December, the FCC has published weekly a list of all items on circulation. Martin’s comments drew praise from his colleagues, lawmakers and public interest groups.  “Sounds like it could be a good first step towards meaningful FCC reform, and I look forward to hearing the details,” said Commissioner Michael Copps.  “This is a welcome development, and I commend Chairman Martin for taking this step,” said Rep. Edward J. Markey (D., Mass.), chairman of the House Energy and Commerce Committee’s telecommunications and the Internet subcommittee.  “Transparency and adequate notice in FCC proceedings is important and reassuring to the public.”

FCC Chairman Kevin Martin on Wednesday updated the House Sub-Committee on Telecommunications and the Internet on the progress of the DTV transition.  He reminded the Committee of the importance of the transition, saying: “It will allow us to significantly improve public safety communications and will usher in a new era of advanced wireless services such as the widespread deployment of wireless broadband.”  For details, please see Martin’s remarks.

The 700 MHz auction bids have continued climbing, far exceeding expectations, research firm ABI Research wrote this week.  Originally expected to raise between $10 billion and $15 billion, the auction’s total current bids stood at $19.1 billion after 45 rounds today.  Bidding on the sought-after C block also surpassed the FCC’s reserve price of $4.6 billion. The eight-license, nationwide C band offering has now raised more in bids for the individual licenses than as a package.  “Demand for 700 MHz is so great, not even the pending recession impacts the bidding process,” ABI Research said.  “Beginning in 2009, the 700 MHz auction could alter wireless broadband services in the United States and abroad,” said ABI Research senior analyst Nadine Manjaro.  “Google’s interest in the C block influenced Verizon’s decision to open up access to its network, just as Apple’s introduction of the iPhone stirred up the cellphone market.”  Meanwhile, sensing a slowdown in the proceedings, FCC this week moved to so-called “Stage Two Transition,” effectively requiring 700 MHz auction participants to keep bidding or quit the game, reported RCR Wireless News.   “With the FCC’s stage-two requirements in place, it’s unlikely any bidders have enough bidding eligibility left to outbid the potential winning price on any of the eight C-Block licenses covering the 50 states,” RCR wrote.  Details.  There was no action on the D block, which still has the $472 million bid placed in the first round.  “We believe the government will consider de-linking the public safety D Block license in order to more closely analyze what needs to be changed about the structure of the public-safety/private partnership in order to attract bidders,” Stifel, Nicolaus & Co. said in a research note. 

The President has submitted a budget to Congress that proposes fiscal year 2009 funding for the FCC of $338.9 million.  The requested FY 2009 funding level would include $20 million to conduct an outreach campaign to educate consumers about the DTV transition and would establish a Public Safety Clearinghouse Program that will significantly expand the Commission’s coordination and outreach efforts targeted to the public safety community.  Details.  According to FierceTelecom, the FY2009 budget also includes technology spending of $242 million to expand the Computer Emergency Readiness Team (US-CERT) and $1.1 billion in “fundamental” information technology research.  The money for fundamental research include $100 million, a 110% increase, for a National Science Foundation wide effort to develop radically new computational concepts and tools; $30 million for a new targeted cyber-security research effort in privacy, fundamental theory, and usability; and $186 million, a 17% increase, for a widely accessible suite of supercomputers, data warehouses, advanced networks, and experimental facilities.  

The United States, Sweden and Japan topped a new ranking that measures how well countries use telecommunications technologies to boost their social and economic prosperity, according to Reuters, which further reported: Connectivity Scorecard, created by London Business School professor Leonard Waverman, and published on Wednesday, measured countries on around 30 indicators including usage of communications technology.  Details.

Presidential campaign front-runners say technology issues must be part of a national strategy for improving U.S. competitiveness, campaign advisors told the State of the Net conference Wednesday.  According to a Communications Daily report, ideas ranged from tax credits to boost technology investment to appointing a chief technology officer to coordinate national policy, said advisors for Senators John McCain (R-AZ), Barack Obama (D-IL) and Hillary Clinton (D-NY).  McCain, considered the Republican front runner, raised $500,000 12 hours after the Florida primary where he beat former Massachusetts Governor Mitt Romney.  According to Federal Election Commission reports, McCain has been the top Republican recipient of telecom industry dollars so far in the race.  McCain has a “tremendous respect” for market-driven innovation, said McCain advisor Doug Holtz-Eakin.  Another McCain top priority is privacy protection as Americans use the Internet, the McCain advisor said. Clinton and Obama, both vocal on tech issues, are in a heated battle as Democratic contender John Edwards officially dropped out of the race Wednesday.  Obama has made technology a major campaign focus, said his advisor Julius Genachowski.  Among major elements of Obama’s tech campaign are proposals for universal broadband, net neutrality, open networks and a promise to use technology to improve the functioning of government.  “If the next president and Congress embrace an innovative tech agenda, it will be good for the economy,” said Thomas Kalil of the Center for American Progress who is advising the Clinton campaign.  Technologically friendly tax and regulatory policies can create long-term benefits for the technology industry, said Kalil.  It’s important that government support for technology remain on a high level and encompass a well thought out regulatory and legislative agenda.  Government should not be in the business of picking winners and losers, said the Clinton advisor.  In related news, WCA has posted on a special WCA website regarding broadband policy a video interview on the topic with the national field director of the Mike Gravel for President campaign. 

The National Telecommunications and Information Administration (NTIA) has released a report that offers an upbeat assessment of the Administration’s efforts to spur growth and competition in the high-speed Internet market, according to Associated Press, which continued: The report concludes that “a reasonable assessment of the available data indicates” that the objective of affordable access to broadband for all by 2007 has been realized “to a very great degree.”  The report relies on data from the FCC and other sources.  The FCC reported that at least one person in more than 99% of all U.S. ZIP codes received broadband service from at least one provider by the end of 2006.  Critics said the report’s conclusion is too rosy.  The report paints a picture of a broadband environment that is becoming increasingly competitive, for which it credits the president’s policies.  Among them: a freeze on state and local taxes on Internet access; a policy of clearing airwaves for use by commercial providers of wireless broadband service; and continuing efforts to “clear away regulatory obstacles” that might thwart investment in new technologies.  Details.

A public notice was published in the Federal Register Monday announcing that the Distance Learning and Telemedicine (DLT) filing window will close April 14, 2008.  RUS said that $29.7 million is available for all grants and combination loan-grants.  The maximum grant is $500,000 and the minimum is $50,000.  RUS anticipates that 100% loan and combination loan-grant applications already received will require $4,649,000 in loan dollars and $526,185 in grant dollars.  For more information, please contact WCA Counsel Paul Sinderbrand of Wilkinson Barker Knauer.

The Canadian Radio-television and Telecommunications Commission has approved a series of initiatives to improve access to broadband services by individuals with disabilities and in rural areas, according to TR Daily, which further reported:  The regulator approved a range of projects proposed by incumbent phone operators and directed them to finalize proposals for the dispersal of the funds in their deferral accounts.  The CRTC estimated that more than $650 million had accumulated in the deferral accounts since they were created in 2002.  The companies were required to place money in those accounts equal to the “revenue reductions that would otherwise have resulted from the application of the price cap formula.”

Following a few tense rounds without any bids, the nationwide block of eight C-Block licenses collectively covering 50 states picked up a new bid during round 17 to push the potential winning price for the block past the $4.6 billion reserve mark, thereby triggering the spectrum’s open-access provision, reported RCR Wireless News.  It continued: The potential winning bid for the block sat at $4.7 billion after round 21, with the minimum bid for round 22 set at $5.2 billion.  But another closely watched block of licenses – D-Block – continued to draw no new bids, standing at $472 million, far short of its $1.3 billion reserve price.  This 10-MHz nationwide license is to be combined with public safety spectrum in a nationwide broadband network.  FCC continued to hold at a minimum bid of $519 million for the next round.  If any of the spectrum blocks do not meet their reserve prices, they will be re-auctioned.  The blocks that have met the reserve prices include the A-Block and the B-Block.  “This means that 24 MHz of the total spectrum is no longer subject to a potential re-auction,” Stifel, Nicolaus & Co said in a research note.  Overall, the FCC’s 700 MHz auction has reached $15.6 billion in total potential winning bids.  Details. 

In the absence of a national broadband strategy in the U.S., hundreds of communities have invested in broadband infrastructure to solve their problem locally, according to a new report by the Institute for Local Self-Reliance (ILSR).  The report contends that DSL and cable networks fail to offer the speeds and capacity necessary for the digital future.  “As broadband has gone from convenience to necessity, communities can no longer rely on private providers to satisfy their broadband needs,” said ILSR’s Christopher Mitchell, author of the study.  “As we transition from copper-based networks to fiber optic networks, each community has an opportunity to build the network they need for their stakeholders.”  Details.

While saying that he would “enthusiastically support” FCC action to declare general principles for open wireless platforms, FCC Commissioner Michael Copps acknowledged Tuesday that in 2008, at least, movement on that front was likely to come mainly from “voluntary industry-led actions,” reported TR Daily.  Copps said he would not object to the industry-led approach, “at least for now.”  However, he added, he would like to see the FCC staff monitor market developments.

Rather than sending “economic stimulus” checks to consumers, as proposed by the White House last week, there should be tax incentives for broadband investment, panelists at a Washington telecom policy discussion suggested, according to TR Daily.  Robert Atkinson, president of the Information Technology and Innovation Foundation called for an “investment-led” stimulus package, saying that a stimulus package “ought to focus on getting something for the money.”  He pointed out that Austria and Sweden allow tax deductions for broadband expenses.  “Wouldn’t it be a good thing if some of that money were going to stimulate broadband investment?” said Stifel Nicolaus analyst Blair Levin, referring to the $140 billion-plus amount that has been proposed for the stimulus package.

The Future of American Communications Working Group, a group of Penn State faculty members and colleagues from across the country, is working on an outline – as well as the practical steps necessary for implementation – of a new U.S. communications policy for the next Administration.  Supported by a $75,000 grant from the Media Democracy Fund, the Working Group plans to produce a volume outlining a comprehensive telecommunications policy agenda for the federal administration to be entering office in January 2009.  That agenda will emphasize the potential of information technologies for improving democratic discourse, social responsibility and the quality of life.  It will specify the means by which those technologies can be made available to all Americans.  The volume will address issues such as network neutrality, universal broadband policy, rural connectivity, universal service funding mechanisms, municipal networks and spectrum policy.  Details.

California Governor Arnold Schwarzenegger’s Broadband Task Force released a report Thursday finding that 96% of Californians have access to broadband.  It said also that speeds vary significantly region to region, according to InfoWorld, which continued: Only about 54% of Californians have access to 10Mbps, and about 56% of the state’s residents subscribe to broadband service, the report said.  The report makes several recommendations.  But one of the other major benefits of the study is its household-level information about broadband service availability, said Jeffrey Campbell, Cisco’s senior director of technology and communications policy.  An examination of broadband availability with this granularity hasn’t been completed in the United States before, he said, adding that the report may serve as a model for other states.  Charles Giancarlo, Cisco’s former chief development officer, served as co-chairman of the Broadband Task Force.  Details. 

The auction of 700 MHz frequencies began today, attracting 1,849 bids totaling more than $2.4 billion during the first round, according to RCR Wireless News, which further reported: The FCC is keeping the identities of bidders secret during the auction to guard against anti-competitive behavior.  Names of all bidding winners will be disclosed after the auction closes, perhaps a month or so from now.  The national commercial-public safety D-Block license received a $472 million bid.  The minimum bid for the second round is nearly $543 million, far below the $3.1 billion reserve price set by the FCC for the D Block.  A collection of eight regional licenses in the C Block covering the 50 states garnered the highest bids during the first round, totaling just over $1 billion.  C Block must draw the minimum $4.6 billion reserve price to keep the open-access license intact.  Other high bids during the first round included an $83 million bid for a 12 MHz A Block economic area license covering the New York City area; a $59 million bid for a 12 MHz B Block cellular market license covering New York City; and a $41 million bid for a 6 MHz, unpaired E Block EA license also covering the New York City area.  Details.

Work on a five-year Farm Bill (HR-2419) probably will start next week as conferees are named after the Senate returns, reported Communications Daily.  It continued: In a continuing debate on broadband policy, some lawmakers fought to redefine “rural area” in the bill’s broadband loan section so loans would flow to the places most in need.  The law now deems a city or town of fewer than 50,000 rural.  HR-2419 would define a rural area as a census tract not within 10 miles of an area with more than 25,000 people and not in a county with a more than 500 residents per square mile on land.

Public Knowledge Communications Director Art Brodsky criticized the Connect Kentucky program in his blog, saying the model, while hailed by Democrats, was “cooked up by Republican staffers for then-Kentucky Gov. Ernie Fletcher (R) and representatives from BellSouth.”  He questioned the group’s accomplishments and said the program provides an “uncertain model” for “the only telecommunications legislation that has a chance of passing the Congress controlled by Democrats this year.”  Posting a rebuttal, Robert D. Atkinson, Ph.D. President of the Information Technology and Innovation Foundation (ITIF), defended the initiative.  “If you want attention in DC these days, there’s one sure fire way: attack an organization that has strong bipartisan support.  And this is exactly what Art Brodsky…did in his recent blog,” Atkinson wrote.  WCA reached out to ConnectAmerica for a more direct response, but did receive one by press time, and hopes to publish one next week.

The FCC has released a public notice, saying 214 applicants qualified to bid in the 700 MHz auction scheduled to begin Jan. 24.  They include Google, AT&T, Verizon Wireless, Qualcomm, Alltel, MetroPCS, Cablevision and EchoStar.  The FCC found 52 would-be bidders nonqualified, including Frontline Wireless, which abruptly announced it was closed for business when auction upfront payments were due.  Frontline had appeared to be a leading contender for the D-Block commercial license, which will be paired with a 10-MHz public safety license to build a shared wireless broadband public safety network.  With Frontline out, FCC Chairman Kevin Martin said Tuesday he remains optimistic that an entity will meet the reserve price for the D-block license at the auction, TR Daily reported.  Martin added that while some news reports have indicated the D-block rules were structured specifically to benefit Frontline, that wasn’t the case.  He noted that some of the provisions Frontline had pushed for were ones the Commission had rejected, “because we thought that it would actually discourage other bidders from participating.”  According to Reuters, Martin expressed concern that the credit crunch could hinder bidders in an upcoming auction.  The auction comes at a time when a meltdown in the U.S. housing and subprime mortgage markets has severely pinched the ability of companies to raise capital.  Martin said the auction must go forward since Congress has ordered the FCC to begin the sale by Jan. 28.  Stifel Nicolaus analyst Rebecca Arbogast said the credit crunch does not affect large carriers such as AT&T and Verizon, which have other ways of raising money.  But for some other bidders, she said, it raises an added hurdle. Arbogast said Martin may be worried that auction bids could fall short of the minimum $1.3 billion “reserve” price set by the FCC. Details. 

The FCC has released two Public Notices following Chairman Kevin Martin’s commitment further to investigate the network management practices of broadband service providers, particularly the extent to which those providers are blocking or degrading peer-to-peer and other types of traffic in a discriminatory or unreasonable manner.  The Commission has already teed up this issue in its net neutrality Notice of Inquiry, on which WCA filed comments.  Here, however, the Commission has asked parties to comment on two more recent filings in the same docket: (1) a petition for declaratory ruling filed by a public interest coalition led by Media Access Project and the Consumer Federation of America, among others, and (2) a petition for rulemaking filed by Vuze, which offers a desktop application that consumers may use to download and view licensed and self-published DVD-quality and High Definition (HD) content from both traditional and non-traditional sources.  Comments on both filings are due Feb. 13, replies Feb. 28.  WCA members interested in the issue should contact WCA Counsel Paul Sinderbrand of Wilkinson Barker Knauer.