NTCA's The New Edge » Google

Consumer Protection Matters to the VON Coalition…Sometimes

Michael Romano — Wed, 01 Feb 2012 20:41:26 +0000

If it’s an information service, no blocking. If it’s a telecom service, no blocking. But if it’s something in between, well not so fast . . .

More than 20 appeals of the FCC’s recent USF/ICC reform order have been filed, and it will be fascinating to see the U.S. Court of Appeals for the Tenth Circuit sort through all of the concerns raised. Of course, many of the appellants raise common issues, such as challenges to retroactive caps on cost recovery and/or the mandatory drive toward a default zero ICC rate for all switched services. (NTCA teed up both of these issues, among others, in its docketing statement filed with the court.)

But one party’s filing jumped out at me the other day. A docketing statement filed by the VON Coalition presents one straightforward – but quite astounding – issue:

The VON Coalition seeks review of the portions of the Report and Order . . . that impose a “No Blocking” obligation on providers of interconnected Voice Over Internet Protocol (VoIP) and one-way VoIP services . . . .

Before turning to why this appeal is so astounding from a public policy perspective, let’s step back and consider who’s part of the VON Coalition. The group’s website indicates that its members include AT&T, Google and Vonage. These are companies who typically claim to take very seriously seamless internetworking and the demands of consumers. Vonage years ago challenged a carrier that was allegedly blocking ports used by customers to initiate and receive VoIP traffic. Meanwhile, Google was one of the leading voices in public policy circles in the “net neutrality” debates, arguing among other things that a nondiscrimination rule should prevent “broadband providers from blocking, degrading, or prioritizing Internet traffic.”

So at least one leading member of the VON Coalition has argued that blocking in the context of a regulated telecom service is bad. Some VON members have argued that blocking in the context of a broadband information service is bad. But apparently, if it’s a different kind of information service (which is where many VoIP providers see themselves) or if it falls somewhere between an information and telecom service (which is where some others see VoIP), VON thinks a different standard should apply.

It’s astonishing to see the VON Coalition make such arguments given where they have been on blocking issues. Even if there could be legitimate questions about the application of certain obligations to information services, the FCC narrowly applied its new blocking rule to calls destined for or coming from the PSTN – and, once again, the VON Coalition seems to have no problem with applying blocking prohibitions even more broadly to information services in other contexts.

Before treading further down this rather awkward path, the VON Coalition group might want to revisit the prior consumer-centric mantra articulated by Google:

The fundamental principle is that it should be the consumer . . . that chooses what content and applications he or she interacts with, and which . . . services, applications and content will be the winners and losers. Thus, as the Commission has proposed, the core affirmative function of the nondiscrimination rule should be to prevent a [] provider from using its control over the network to favor or disadvantage (by blocking, degrading, prioritizing, throttling or other means) particular sources of content or applications.

AT&T rightfully noted in its own Public Policy Blog a while back the concerns about allowing some industry players to block calls on the PSTN while others were subject to blocking prohibitions. The FCC took sensible steps in its recent order to help remedy this regulatory disparity, in the interests of consumers and the integrity of the PSTN. It’s one thing for parties to have disagreements about compensation structures or interconnection rights. But it’s another thing altogether to see parties who purport to stand up for consumer interests against blocking in the context of both information and telecom services try to wiggle out of consumer protection duties when those obligations boomerang back their way. This ultimately begs the question – who is the VON Coalition really trying to protect?

Stay informed about the FCC’s USF/ICC reform proceeding. Read the Washington Report (NTCA member log-in required).

Google’s Next-Gen Network is Delayed by Pole Attachments

Jesse Ward — Fri, 27 Jan 2012 20:09:49 +0000

Last March, when Google announced it planned to build a 1 Gpbs FTTH network in Kansas City, I was left with the distinct impression that the Internet giant thought it would be a relatively easy undertaking. After all, Google is not traditionally in the business of network build out, yet the ambitious project was conceived with the intent to showcase next-generation deployment techniques, apps and network characteristics such as open-access and consumer choice.

Nearly 10 months later, the company has been plagued by right-of-way issues that have slowed down the network build out and service launch. It’s difficult to determine just how much of a delay has occurred since Google won’t publicly admit that its network build out is behind schedule. According to the Kansas City Star, a local paper, the company had planned to enroll customers in late 2011, and launch its service in the first quarter of this year. However, Google has yet to install any cables. It’s now estimating a service launch date later this year.

Just what is the holdup? The paper reports that Google is now engaged in a debate about how it will hang its wires on utility poles and the associated fees and costs.

According to the paper, Google had expected that the overarching government of Wyandotte County – a single entity that governs both Kansas City, KS, and the overarching county – could streamline the permitting process because it also owns the Kansas City Board of Public Utilities. Indeed, when the project was first announced, the original agreement with the city included just 60-words relating to pole attachment issues and provisions.

In short, Google was given two options. The company could string its cable on the poles in the traditional space reserved for telecom and cable providers, at market approved rates, or a second option — the ability to hang its wires in the space ordinarily reserved for power lines. In the later case, the pole attachment fee would be waived in exchange for Google delivering service to 130 anchor locations such as schools, libraries and city buildings.

Unfortunately for Google, it apparently didn’t count on the costs needed to hang the fiber so close to electric wires, or the need for more skilled and costly technicians. It seems the Internet giant expected its brand reputation would provide the company with an advantage, and the clear the way of red tape faced by all other ISPs.

Traditionally, there have been contentious negotiations between the utility provider, the PUC and telecommunications and cable providers in regard to pole attachment rates, timelines for approval and placement of the cables. In April 2011, the FCC announced a landmark order that provided clarity and uniformity, and was designed to streamline the pole attachment process and rates. However, the order still provides for some flexibility for the local utility and governing authorities to make arrangements which favor certain competitors.

The Kansas City Star spoke to local cable provider SureWest who admitted that it too would have liked to have benefited from free access to pole attachments.

But even with this advantage, there are giant hurdles in the way of building any next-gen network. We’ll keep you posted on Google’s network development and the to-be-announced pricing scheme.

VOTW: Will Google+ Lure Businesses?

Jesse Ward — Mon, 28 Nov 2011 20:55:40 +0000

And last but not least, our video of the week (VOTW).

Update: Hulu Bids

Steve Fravel — Tue, 27 Sep 2011 14:56:18 +0000

If the list of bidders in the proposed sale of Hulu are Google, Yahoo, Dish Network and Amazon, which company would you likely pick to have made the highest bid? If you selected Google you’d be correct, although there is a “but” after the price pledged. Google has placed conditions on the bid that may make it less attractive than the next largest bid.

With a bid of $1.9 billion, Dish Network is second runner-up in straight cash offers. So, what is next?

The owners of Hulu will have to take a good look at not only the money pledged but the conditions that potential buyers have set on the sale. They must consider the requirements that Google has set, keeping in mind that none of the bids is in-line with the money they had hoped to get for Hulu.

They also might reject the current round of bidding and re-tool the sale conditions for another round. The owners could determine that the best thing to do is nothing at all and keep Hulu.

Dish is thought to be willing to bid higher, with interest in both the content and the “back-end” technology in the Hulu service. It may come down to Google or Dish as the new owner. In this game it is now the owner’s move.

VOTW: Google Wallet Officially Launches

Jesse Ward — Mon, 26 Sep 2011 20:15:53 +0000

And last but not least, our video of the week (VOTW). Google Wallet officially launched on Nexus S 4G smartphones.

Hulu Up for Sale, 1M Paid Subs within Reach

Jesse Ward — Mon, 11 Jul 2011 17:41:52 +0000

For several weeks now, the trade press has been buzzing with rumors that Hulu is up for sale. Last week Disney CEO Bob Iger confirmed that the three media companies that own the online video portal — News Corp., Disney and Comcast’s NBCUniversal — are “committed to selling” the site. Iger did not reveal when a sale would occur, but predicted it was inevitable.

Nearly a dozen companies are rumored to be actively involved in discussions with Hulu, including Amazon, AT&T, Google, Microsoft, Netflix, Verizon and Yahoo.

Google is predicted to be a front-runner. Although the Internet giant already has a vested interest in video through its YouTube division, Hulu would provide the company with something it does not have — access to Hollywood contracts.

Amazon may be the most well-suited as a Hulu buyer since its business model is based on selling and distributing content. In addition, Hulu CEO Jason Kilar is a former Hulu exec, bringing a certain level of familiarity to the deal.

Hulu reported in a blog post last week that is now has more than 875,000 paid subscribers, and it expects to exceed 1 million users for its $7.99 per-month service by the end of the summer season, earlier than the year-end goal the company initially set. Management expects total revenue of approximately $500 million in 2011.

In comparison, Netflix has 23 million customers and, according to Bloomberg, may generate $3.25 billion in revenue this year.

For more, see this All Things D blog post.

Google Announces Mobile Payment Service

Jesse Ward — Tue, 31 May 2011 18:04:20 +0000

Last Thursday, Google officially announced its Google Wallet mobile payment service, an app which makes your phone your wallet, so you can tap, pay and take advantage of promotions on your smartphone while you shop.

“Today, we’ve joined with leaders in the industry to build the next generation of mobile commerce,” said Stephanie Tilenius, vice president, commerce and payments, Google. “With Citi, MasterCard, First Data and Sprint we’re building an open commerce ecosystem that for the first time will make it possible for you to pay with an NFC wallet and redeem consumer promotions all in one tap, while shopping offline.”

Google Wallet will accept two payment solutions: a PayPass-eligible Citi MasterCard and a virtual Google Prepaid card. Most people who already have a PayPass-eligible Citi MasterCard can simply add it to Google Wallet over the air, using First Data’s service — or they can fund the Google Prepaid card with any payment card.

Google Wallet is being field tested in New York and San Francisco, and is expected to be available to consumers nationwide this summer. Thanks to its partnership with MasterCard, Google Wallet will immediately be accepted at more than 124,000 PayPass-enabled merchants nationally and more than 311,000 globally.

In addition to Citibank, First Data and MasterCard, the service is backed by a number of high-powered retail partners including Macy’s, Subway, Toys ‘R Us and Walgreens — plus Sprint on the carrier side. At the launch event May 26, Google invited additional issuing banks, payment networks, mobile carriers, handset manufacturers, point of sale systems companies and merchants to join the initiative.

The service is based on near field communications (NFC), a set of short-range wireless technologies that enable users to exchange data. Initially, the Sprint Nexus S 4G will be the only compatible phone, but support for more phones is promised “over time,” and Google even suggested that phones without built-in NFC could simply use an after-market NFC sticker to adopt the technology.

For more, watch the video above, or see this press release.

Google Picks Kansas City for FTTH Network

Jesse Ward — Mon, 04 Apr 2011 15:13:43 +0000

Back in February, Google announced it was launching an experimental 1 Gbps FTTH network in a small number of trial locations across the United States. The Internet giant received more than 1,100 applications from communities nationwide and took its time evaluating the contenders.

Last week Google officially announced that it has chosen Kansas City, Kan., as the first place that will get its ultra-fast broadband network. Google signed a development agreement with the city and it plans to work closely with local organizations, businesses and universities to bring a next-generation Web experience to the community. (See the video after the jump.)

“In selecting a city, our goal was to find a location where we could build efficiently, make an impact on the community and develop relationships with local government and community organizations,” Google said in a blog posting. “We’ve found this in Kansas City. We’ll be working closely with local organizations including the Kauffman Foundation, KCNext and the University of Kansas Medical Center to help develop the gigabit applications of the future.”

Pending approval from the city’s board of commissioners, Google plans to offer service in Kansas City beginning in 2012.

Of note, Google also said that this is the start of the project. During the coming months, the company plans to talk to other interested cities about the possibility of bringing ultra high-speed broadband to their communities.

For more, see this Google blog posting.

YouTube in Talks with Pro Sports Leagues to Stream Live Games

Jesse Ward — Mon, 28 Feb 2011 17:29:56 +0000

Following on the heels of a successful broadcast of cricket matches from the Indian Premier League last summer, Google Inc.’s YouTube is in talks with “most pro sports leagues” about streaming live games.

Google is remaining mum on the details, but according to a report published last Wednesday by Bloomberg, the video site has been speaking with the National Basketball Association (NBA) and the National Hockey League (NHL).

Gautam Anand, Google’s director of content partnerships for Asia Pacific, said the company plans to stream more live sports this year. ”It’s fair to say that there will be a lot more appealing sports content you’ll see on YouTube,” Anand said. “We have ongoing conversations with pretty much everyone.”

Google hopes that by adding expanded content it will keep viewers on its site longer, thereby making it a more attractive proposition for advertisers. During the Indian Premier League cricket matches, viewers averaged 40 minutes on the site, far longer than the 15 minutes the average user browses content on YouTube.

Although no deals have been finalized, if Google is able to close a deal with a major sports team it will be an important development in the video ecosystem; it could affect cable operators who have been using live sports as a differentiator from less expensive video services such as Hulu, Netflix and Apple’s iTunes.

It’s not clear how close Google is to securing rights to broadcast NBA and NHL games. In fact, in the same Bloomberg article a spokesman for the NHL denied that the league is negotiating with Google. Additionally, Google made no mention of the MLB, the NFL or college sports, powerhouses which could entice subscribers to hold onto their Pay-TV services.

For the time being at least, professional sports leagues make their bread and butter from broadcast content deals. Currently, over-the-top (OTT) is utilized as a delivery mechanism to reach die-hard fans; many sports franchises have some aspect of an OTT video service available for out of area games — albeit via expensive, a la carte services.

Naysayers will point out that if pro sports leagues offer their content via YouTube, they may cannibalize their broadcast viewers. However, thinking beyond traditional games, pro sports might be willing to gain further mileage out of their seasons by offering additional content via an online service – think NASCAR practice sessions, PGA opening rounds, etc. This might be an interesting way for YouTube to become further involved in sports programming and address a niche target need at the same time.

For more, see this Bloomberg article.

Google Voice (Officially) Launches Number Porting

Jesse Ward — Mon, 31 Jan 2011 15:33:30 +0000

Just a few days after I reported on Google’s beta test of this new feature, the Internet giant officially launched a number porting service which allows a user to port his/her mobile number to Google Voice. At this time there is no mention of number porting for landline numbers.

Google charges $20 for the service, and the user may incur additional charges, including early termination fees, from his/her wireless carrier. Number Porting is currently available for existing Google Voice users and will become available to new users within the next few weeks.