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March 15, 2010, Alert No. 2,058.
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FCC Releases National Broadband Plan

3/15. The Federal Communications Commission (FCC) released a document [376 pages in PDF] titled "A National Broadband Plan for Our Future". The FCC also released a summary [6 pages in PDF] and a release [2 pages in PDF].

The FCC is scheduled hold to an event at 10:30 AM on March 16 titled "open meeting". The sole item on the agenda [PDF] is a "presentation" of a "National Broadband Plan", and adoption of a "Broadband Mission Statement". The Commissioners are not scheduled to vote on the plan. This is GN Docket No. 09-51.

The document states that "the author of this plan is America itself".

It states that "the plan seeks to ensure that the entire broadband ecosystem -- networks, devices, content and applications -- is healthy. It makes recommendations to the FCC, the Executive Branch, Congress and state and local governments."

While the document contains numerous proposals for FCC rules changes, Congressional legislation, and actions by other government entities, the report, said Sen. John Kerry (D-MA), "is not self-executing".

Although, the FCC has a history of relying upon mere statements as the basis for enforcement actions.

The report asserts that "It does not reach conclusions about or explore in detail the many legal issues that will be relevant to the FCC’s implementation of the plan. These will be addressed through notice-and-comment rulemakings the FCC will conduct following the plan."

The plan also discusses, but makes no recommendations regarding, the legal framework for such implementation. That is, the FCC could treat broadband as a Title II communications service, as an information service subject to the theory of "ancillary jurisdiction", or as specified by Congress in yet to be enacted legislation. The document merely states that "The FCC will consider these and related questions as it moves forward to implement the plan."

The document contains many proposals regarding spectrum. It states that the FCC should "Free up and allocate additional spectrum for unlicensed use", "Make 500 megahertz of spectrum newly available for broadband within 10 years, of which 300 megahertz should be made available for mobile use within five years", and "Expand opportunities for innovative spectrum access models by creating new avenues for opportunistic and unlicensed use of spectrum".

More specifically, the document states that "The FCC should make up to 60 megahertz available by auctioning Advanced Wireless Services (AWS ) bands, including, if possible, 20 megahertz from federal allocations.

The document also states that in 2011 "The FCC should auction the 10 megahertz Upper 700 MHz D Block for commercial use that is technically compatible with public safety broadband services". Also, "The FCC should initiate a rule making proceeding to reallocate 120 megahertz from the broadcast television (TV) bands."

It also states that the FCC should "Consider licensing a block of spectrum with a condition to offer free or low-cost service that would create affordable alternatives for consumers".

It contains proposals for changing and expanding the FCC universal service tax and subsidy programs. It recommends that the FCC "Create the Connect America Fund (CAF) to support the provision of affordable broadband and voice with at least 4 Mbps actual download speeds and shift up to $15.5 billion over the next decade from the existing Universal Service Fund (USF) program to support broadband." It adds that "If Congress wishes to accelerate the deployment of broadband to unserved areas and otherwise smooth the transition of the Fund, it could make available public funds of a few billion dollars per year over two to three years."

It further proposes that the government "Create a Mobility Fund to provide targeted funding to ensure no states are lagging significantly behind the national average for 3G wireless coverage", "transition" the high cost component "over the next 10 years and shift all resources to the new funds", "Reform intercarrier compensation", and expand the range of entities and customers subject to universal service taxation.

It also proposes that the government expand the FCC's "Lifeline and Link-Up programs by allowing subsidies provided to low-income Americans to be used for broadband".

Reaction on Capitol Hill. Democrats on Capitol Hill praised the document.

This report is mandated by HR 1, the huge spending bill enacted in February of 2009. HR 1 passed the House and Senate on nearly straight party line votes.

Rep. Rick Boucher (D-VA), Chairman of the House Commerce Committee's (HCC) Subcommittee on Communications, Technology and the Internet (SCTI), stated in a release that the FCC "has done a superb job" and "I look forward to working with FCC Chairman Genachowski to enact legislation which will carry forward the Commission’s plan".

Rep. Henry Waxman (D-CA), Chairman of the HCC, stated in a release that "I look forward to exploring the recommendations in more detail and in the bipartisan manner we have traditionally addressed communications and technology issues." He added that "Chairman Boucher's Subcommittee ... will hold its first hearing on the National Broadband Plan on Thursday, March 25, 2010."

Sen. John Rockefeller (D-WV), Chairman of the Senate Commerce Committee (SCC), stated in a release that "I welcome the FCC's National Broadband Plan. I look forward to reading and reviewing its recommendations. But above all, I look forward to the FCC moving ahead to make broadband a reality for everyone in this country".

Sen. John Kerry (D-MA) stated in a release that "This is a roadmap to an America with the most robust, accessible broadband infrastructure in the world and the jobs that come with it, and we should settle for nothing less". He added that this plan "is not self-executing. It will require bipartisan support and long term commitment to implement."

Few Republicans issued prompt statements on the document. Rep. Cliff Stearns (R-FL), the ranking Republican on the HCC's SCTI, stated in a release that "I am concerned, however, that the plan may contain stalking horses for investment-killing ideas, such as so-called net neutrality mandates or a return to out-dated, monopoly-era regulation."

Rep. Stearns also stated that "The FCC's plan confirms that 95 percent of households have access to broadband and two-thirds of those households are subscribers. That's confirmation that our existing free market, pro-investment policies are working. The FCC must remain focused on the five percent of households that otherwise may be uneconomic for the private sector to serve."

More Reaction. Barbara Esbin of the Progress & Freedom Foundation (PFF) commented on the procedure to be employed by the FCC at the March 16 meeting. She wrote in a statement that there is "a Plan developed and written by a team chosen by the FCC's Chairman that will not be adopted by vote of the full Commission. The five Commissioners will vote instead on a 'Broadband Mission Statement' that contains 'goals for U.S. broadband policy.' In other words, the full FCC will adopt only a statement of broadband policy goals on March 16th."

Esbin added that "There is a danger that this procedural choice could impede (perhaps greatly) the ultimate effect of the Plan, which is to promote jobs, growth, and economic recovery." For example, "Will the other governmental entities whose actions are required to implement the recommendations feel as compelled to follow the recommendations of the Plan when it does not even bear the imprimatur of an affirmative vote of a majority of the sitting Commissioners?"

Ed Black, head of the Computer and Communications Industry Association (CCIA), focused on competition in a statement. He wrote "The FCC Plan recognizes that while the biggest network operators are investing billions, we have too few network operators. That is, there's not enough competition, and we're stuck with local market duopoly unless new entrants can break through with next generation mobile broadband."

He continued that "This plan wisely includes an overdue review of wholesale competition rules in the United States." He also wrote that "Big legacy carriers control too much of our valuable spectrum. Incentives for broadcasters and government agencies to liberate some of their unused spectrum for mobile broadband will be pro-competitive and we welcome such incentives. We are delighted that FCC appears to appreciate the problem of middle mile bottlenecks in high capacity backhaul lines faced by all but the largest two wireless network operators and will consider addressing this problem with pro-competitive reform of special access pricing and terms of service abuses. CCIA also supports the Plan's pro-competitive initiatives on data roaming."

The Public Knowledge (PK) released a statement on the FCC document. "We are particularly encouraged to see so much attention devoted to competition policies, which we believe will help to create new opportunities for innovators and new choices for consumers in what is now a tightly held duopoly. Specifically, we commend the Commission for undertaking a review of wholesale competition rules. An examination of special access rates should also be included under the plan, to provide relief for business customers and consumers from costs that could not be justified in a true competitive market."

Robert Atkinson, head of the Information Technology and Innovation Foundation (ITIF), stated in a release that the document "has many laudable recommendations to expand broadband access".

Kyle McSlarrow, head of the National Cable and Telecommunications Association (NCTA), stated in a release that the FCC "should be commended for their efforts to draft a broadband `blueprint´ that surveys the technology landscape, that identifies industry progress to date and remaining policy challenges, and that suggests new ideas and reforms to advance our common goal of promoting investment, innovation, and broadband networks that are second to none. As with any report of this size, variety and complexity, we expect that we will have points of agreement and disagreement on specific issues. But the Report makes a significant contribution to the dialogue, and we remain committed to working with all members of the Commission in discussing new ideas and initiatives that will facilitate the ubiquitous availability and use of robust broadband networks."

Steve Largent, head of the CTIA, stated in a release that the "CTIA and our member companies are extremely pleased that spectrum is recognized as being pivotal to the National Broadband Plan. We appreciate the FCC's and the Broadband team's focus on making `500 MHz of spectrum for broadband within 10 years, of which 300 MHz should be made available for mobile use within five years.´"

Josh Silver of the Free Press stated in a release that "The FCC's National Broadband Plan represents a decisive break from the policies of the Bush administration." He added that the FCC should confront "the market power of the cable and telephone giants that control the broadband market. The problems caused by the lack of competition are what led the Congress to order up a National Broadband Plan. While the FCC does take some important steps toward a new framework for competition policy, many of the critical questions are deferred for further review."

Dennis Wharton of the National Association of Broadcasters (NAB) stated in a release that "We will examine closely the details of the National Broadband Plan, and encourage Members of Congress to do the same." He elaborated that "We were pleased by initial indications from FCC members that any spectrum reallocation would be voluntary, and were therefore prepared to move forward in a constructive fashion on that basis. However, we are concerned by reports today that suggest many aspects of the plan may in fact not be as voluntary as originally promised."

Walter McCormick, head of the US Telecom, stated in a release that "We are pleased by the Commission's recognition of the importance of intercarrier compensation and universal service support to the financial fundamentals of the broadband industry, and by its recognition that it will be through private sector investment and innovation that America's broadband deployment goals will be met, that consumers will be benefited by meaningful competition and choice, that jobs will be created, and that our national objectives will be achieved."

Eric Schmidt, CEO of Google and Chairman of the New America Foundation (NAF) wrote in a statement, "Let's install broadband fiber as part of every federally-funded infrastructure project, from highways to mass transit. And let’s deploy broadband fiber to every library, school, community health center, and public housing facility in the U.S.

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In This Issue
This issue contains the following items:
 • FCC Releases National Broadband Plan
Washington Tech Calendar
New items are highlighted in red.
Monday, March 15

The House will meet at 12:30 PM for morning hour, and at 2:00 PM for legislative business. It will consider non-technology related items under suspension of the rules. Votes will be postponed until 6:30 PM. See, Rep. Hoyer's schedule for week of March 15.

The Senate will meet at 2:00 PM.

12:00 NOON. The Federal Communications Commission (FCC) and Federal Communications Bar Association (FCBA) International Telecommunications Committee will hold an event titled "EU Electronic Communications Regulatory Developments". The speakers will be Mindel De La Torre (Chief of the FCC's International Bureau), Gerry Oberst (Hogan & Hartson), and Winston Maxwell (Hogan & Hartson) . This event is not open to the public. Lunch will be provided. Location: Hogan & Hartson, 13th Floor West, 555 13th St., NW.

TIME? The Department of Commerce's (DOC) National Institute of Standards and Technology (NIST) will host an event titled "kick-off informational meeting" via the web regarding its creation of a "700 MHz Public Safety Broadband Demonstration Network". See, notice in the Federal Register, March 3, 2010, Vol. 75, No. 41, at Pages 9586-9587, and story titled "NIST Announces Creation of 700 MHz Public Safety Broadband Demonstration Network" in TLJ Daily E-Mail Alert No. 2,055, March 4, 2055. The deadline to register is 3:00 PM on March 12, 2010.

Deadline to submit comments to the National Institute of Standards and Technology's (NIST) Computer Security Division (CSD) regarding its draft SP 800-131 [22 pages in PDF] titled "Recommendation for the Transitioning of Cryptographic Algorithms and Key Sizes".

Tuesday, March 16

The House will meet at 10:30 AM for morning hour, and at 12:00 NOON for legislative business. The schedule for the week includes consideration of HR 1387 [LOC | WW], the "Electronic Message Preservation Act", a bill to require the Archivist to promulgate regulations that require federal agencies to preserve certain electronic messages. See, Rep. Hoyer's schedule for week of March 15.

The Senate will meet at 10:15 AM.

10:30 AM. The Federal Communications Commission (FCC) will hold an event titled "open meeting". The sole item on the agenda [PDF] is presentation of an item titled "A National Broadband Plan for Our Future", and adoption of a "Broadband Mission Statement". This is GN Docket No. 09-51. Location: FCC, Commission Meeting Room.

11:00 AM. The House Judiciary Committee's (HJC) Subcommittee on Commercial and Administrative Law will hold a hearing titled "Federal Rulemaking and the Regulatory Process". See, notice. Location: Room 2141, Rayburn Building.

12:00 NOON - 1:30 PM. The Federal Communications Bar Association's (FCBA) Annual Seminar Committee will host a brown bag lunch. to plan an event titled "Annual Seminar". Location: Wiltshire Grannis, 12th floor, 1200 18th St., NW.

12:30 PM. Sen. Charles Schumer (D-NY), Sen. Debbie Stabenow (D-MI), Sen. Lindsay Graham (R-SC), and Sen. Sherrod Brown (D-OH) will hold a news conference regarding PR China currency. Location, Senate Studio, S-325, Capitol Building.

1:00 - 3:00 PM. The American Enterprise Institute (AEI) will host an event titled "Trade Enforcement". The keynote speaker will be Timothy Reif, General Counsel of the Office of the U.S. Trade Representative (OUSTR). The other speakers will be James Bacchus (Greenberg Traurig), Marc Busch (Georgetown University), Alan Wolff (Dewey and LeBoeuf), and Philip Levy (AEI). See, notice. Location: AEI, 1150 17th St., NW.

2:00 PM. The House Appropriations Committee's (HAC) Subcommittee on Commerce, Justice, Science and Related Agencies will hold a hearing titled "Department of Justice FY2011 Budget Overview". The witness will be Attorney General Eric Holder. The HAC will webcast this event. Location: Room 2359, Rayburn Building.

2:00 - 3:30 PM. The Department of Justice's (DOJ) Antitrust Division will host a seminar presented by Tim Brennan (UMD Baltimore County) titled "Exclusion vs. Predation: Drawing Lines Between Easy and Hard Abuse Cases". For more information, contact Patrick Greenlee at 202-307-3745 or atr dot eag at usdoj dot gov. Location: DOJ, Liberty Square Building, 450 5th St., NW.

2:30 PM. The Senate Intelligence Committee (SIC) will hold a closed meeting. Location: Room 219, Hart Building.

6:00 - 8:15 PM. The Federal Communications Bar Association's (FCBA) Mass Media Committee will host an event titled "Political Broadcasting Rule Update". The price to attend ranges from $50 to $150. This event qualifies for continuing legal education credits. Registrations and cancellations are due by 5:00 PM on March 12. Location: Wiley Rein, 1776 K St., NW.

Wednesday, March 17

St. Patrick's Day.

The House will meet at 10:00 AM for legislative business. See, Rep. Hoyer's schedule for week of March 15.

10:00 AM. The House Appropriations Committee's (HAC) Subcommittee on Financial Services will hold a hearing titled "FY 2011 Budget for the Securities and Exchange Commission". The witness will be SEC Chairman Mary Schapiro. Location: Room 2359, Rayburn Building.

10:00 AM - 4:00 PM. The Office of the National Coordinator for Health Information Technology's HIT Policy Committee will meet. See, notice in the Federal Register, February 26, 2010, Vol. 75, No. 38, at Pages 8953-8954. Location: Omni Shoreham Hotel, 2500 Calvert St., NW.

1:00 PM. The House Small Business Committee (HSBC) will hold a hearing titled "Business Incubators and Their Role in Job Creation". Location: Room 2360, Rayburn Building.

2:00 PM. The House Appropriations Committee's (HAC) Subcommittee on Commerce, Justice, Science and Related Agencies will hold a hearing titled "Federal Bureau of Investigation FY2011 Budget Overview". The witness will be FBI Director Robert Mueller. Location: Room H-144, Capitol Building.

2:30 PM. The House Foreign Affairs Committee's (HFAC) Subcommittee on Asia, the Pacific and the Global Environment will hold a hearing titled "U.S.-Japan Relations: Enduring Ties, Recent Developments". The witnesses will be Joseph Donovan (Department of State), Michael Schiffer (DOS), Sheila Smith (Council on Foreign Relations), and Michael Auslin (American Enterprise Institute). See, notice. Location: Room 2172, Rayburn Building.

3:00 PM. The Senate Commerce Committee's (SCC) Subcommittee on Consumer Protection, Product Safety, and Insurance will hold a hearing titled "Financial Services and Products: The Role of the Federal Trade Commission in Protecting Consumers, Part I". See, notice. Location: Room 253, Russell Building.

Date set by Federal Communications Commission (FCC) Chairman Julius Genachowski to submit a report titled "National Broadband Plan". See, letters dated January 7, 2010. The relevant statute, HR 1 [LOC | WW], requires that this report be completed by February 17, 2010.

Thursday, March 18

The House will meet at 10:00 AM for legislative business. See, Rep. Hoyer's schedule for week of March 15.

8:30 AM - 1:00 PM. The Department of Homeland Security's (DHS) Data Privacy and Integrity Advisory Committee will meet. The agenda includes presentations on cyber security. See, notice in the Federal Register, February 23, 2010, Vol. 75, No. 35, at Pages 8087-8088. Location: US Citizenship and Immigration Services Tomich Center, 111 Massachusetts Ave., NW.

8:45 AM - 4:00 PM. The U.S.-China Economic and Security Review Commission will hold a hearing titled "Taiwan-China: Recent Economic, Political, and Military Developments across the Strait, and Implications for the United States". This event is open to the public. See, notice in the Federal Register, March 5, 2010, Vol. 75, No. 43, at Page 10346. Location: Room 562, Dirksen Building, Capitol Hill.

10:00 AM. The Senate Judiciary Committee (SJC) will hold an executive business meeting. The agenda again includes consideration of S 148 [LOC | WW], the "Discount Pricing Consumer Protection Act". This bill would undo the effects of the opinion [55 pages in PDF] of the Supreme Court (SCUS) in Leegin Creative Leather Products v. PSKS, an antitrust case regarding minimum resale price maintenance by manufacturers and intermediate distributors. It impacts the marketing of some consumer IT and electronic products. See also, story titled "SCUS Holds That All Vertical Price Restraints Are Subject to Rule of Reason" in TLJ Daily E-Mail Alert No. 1,603, June 28, 2007. The agenda also includes consideration of numerous judicial nominees: Josephine Tucker (to be a Judge of the U.S. District Court for the Central District of California), Mark Goldsmith (USDC/EDMich), Brian Jackson (USDC/MDLa), Elizabeth Foote (USDC/WDLa), Marc Treadwell (USDC/MDGa), Wifredo Ferrer (USDC/SDFl), and William Nettles (USDC/DSCar). The SJC rarely follows its published agendas. The SJC will webcast this event. See, notice. Location: Room 226, Dirksen Building.

2:00 PM. The House Oversight and Government Reform Committee's (HOGRC) Subcommittee on Information Policy, Census and National Archives will hold a hearing titled "Administration of the Freedom of Information Act: Current Trends". See, notice. The FOIA is codified at 5 U.S.C. § 552. Location: Room 2154, Rayburn Building.

2:30 PM. The Senate Commerce Committee (SCC) will hold a hearing titled "Assessing Commercial Space Capabilities". See, notice. Location: Room 253, Russell Building.

2:30 PM. The Federal Trade Commission's (FTC) Bureau of Economics (BOE) will host a seminar presented by Kenneth Corts (University of Toronto business school) titled "Inducing Information Provision through Competition Policy: Prohibitions on False and Unsubstantiated Claims". See, paper [PDF]. For more information, contact Loren Smith lsmith2 at ftc dot gov or Tammy John tjohn at ftc dot gov. Location: FTC, Conference Center, 601 New Jersey Ave., NW.

Friday, March 19

The House will meet at 9:00 AM for legislative business. See, Rep. Hoyer's schedule for week of March 15.

9:00 AM - 4:00 PM. The Federal Communications Commission's (FCC) Consumer Advisory Committee will meet. See, notice in the Federal Register, March 4, 2010, Vol. 75, No. 42, at Pages 9898-9899. Location: FCC, Commission Meeting Room, 445 12th St., SW.

Deadline to submit to the Federal Communications Commission (FCC) replies to statements in support of or in opposition to the petition for rulemaking [22 pages in PDF] submitted by the California Public Utilities Commission (CPUC) regarding direct access to the FCC's Network Outage Reporting System (NORS). See, notice in the Federal Register, February 9, 2010, Vol. 75, No. 26, at Pages 6339-6340. This proceeding is RM-11588 and ET Docket No. 04-35.

Monday, March 22

9:00 AM - 1:00 PM. The Federal Communications Commission's (FCC) Communications Security, Reliability, and Interoperability Council (CSRIC) will meet. See, notice in the Federal Register, March 4, 2010, Vol. 75, No. 42, at Pages 9899-9900. Location: FCC, Commission Meeting Room, 445 12th St., SW.

5:30 PM. The House Judiciary Committee (HJC) will hold a hearing titled "Design Patents and Auto Replacement Parts". See, notice. Location: Room 2141, Rayburn Building.