FCC Votes To Tighten Broadband Providers Privacy Rules

The U.S. Federal Communications Commission is moving toward major new regulations requiring ISPs to get customer permission before using or sharing their Web-surfing history and other personal information.

Ericsson Acquires Fabrix Systems

The distinctions between TV and mobile services continues to merge and in many cases that occurs in the cloud.

That’s the logic behind Ericsson’s planned $95 million acquisition of Fabrix Systems, which sells a cloud-based platform for delivering DVR (digital video recorder), video on demand and other services.

The acquisition is intended to help service providers deliver what Ericsson calls TV Anywhere, for viewing on multiple devices with high-quality and relevant content for each user. Cable operators, telecommunications carriers and other service providers are seeing rapid growth in video streaming and want to reach consumers on multiple screens. That content increasingly is hosted in cloud data centers and delivered via Internet Protocol networks.

Fabrix, which has 103 employees in the U.S. and Israel, sells an integrated platform for media storage, processing and delivery. Ericsson said the acquisition will make new services possible on Ericsson MediaFirst and Mediaroom as well as other TV platforms.

Stockholm-based Ericsson expects the deal to close in the fourth quarter. Fabrix Systems will become part of Ericsson’s Business Unit Support Solutions.

Other players usually associated with data networks are also moving into the once-specialized realm of TV. At last year’s CES, Cisco Systems introduced Videoscape Unity, a system for providing unified video services across multiple screens, and at this year’s show it unveiled Videoscape Cloud, an OpenStack-based video delivery platform that can be run on service providers’ cloud infrastructure instead of on specialized hardware.

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HTTP2 Procotol Nears Completion

When it comes to amping up traffic over the Internet, sometimes too much of a good thing may not be such a good thing at all.

The Internet Engineering Task Force is putting the final touches on HTTP/2, the second version of the Hypertext Transport Protocol (HTTP). The working group has issued a last call draft, urging interested parties to voice concerns before it becomes a full Internet specification.

Not everyone is completely satisfied with the protocol however.

“There is a lot of good in this proposed standard, but I have some deep reservations about some bad and ugly aspects of the protocol,” wrote Greg Wilkins, lead developer of the open source Jetty server software, noting his concerns in a blog item posted Monday.

Others, however, praise HTTP/2 and say it is long overdue.

“A lot of our users are experimenting with the protocol,” said Owen Garrett, head of products for server software provider NGINX. “The feedback is that generally, they have seen big performance benefits.”

First created by Web originator Tim Berners-Lee and associates, HTTP quite literally powers today’s Web, providing the language for a browser to request a Web page from a server.

Version 2.0 of HTTP, based largely on the SPDY protocol developed by Google, promises to be a better fit for how people use the Web.

“The challenge with HTTP is that it is a fairly simple protocol, and it can be quite laborious to download all the resources required to render a Web page. SPDY addresses this issue,” Garrett said.

While the first generation of Web sites were largely simple and relatively small, static documents, the Web today is used as a platform for delivering applications and bandwidth intensive real-time multimedia content.

HTTP/2 speeds basic HTTP in a number of ways. HTTP/2 allows servers to send all the different elements of a requested Web page at once, eliminating the serial sets of messages that have to be sent back and forth under plain HTTP.

HTTP/2 also allows the server and the browser to compress HTTP, which cuts the amount of data that needs to be communicated between the two.

As a result, HTTP/2 “is really useful for organization with sophisticated Web sites, particularly when its users are distributed globally or using slower networks — mobile users for instance,” Garrett said.

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Will Sprint Acquisition Efforts Succeed

Sprint Corp is meeting with banks to devise a funding plan for its bid for smaller rival T-Mobile US Inc, a source familiar with the situation said, as the mobile carrier works to ease regulatory concerns that the deal would hurt competition.

The source said that Sprint, which is owned by Japan’s SoftBank Corp, is looking to fund the bulk of T-Mobile’s estimated $50 billion price tag with corporate bonds and cover the rest with syndicated loans and convertible bonds.

Sprint is currently having discussions with at least five banks, the source told Reuters, including JP Morgan, Goldman Sachs and Deutsche Bank.

Bloomberg, which first reported that Sprint was in talks with banks on Thursday morning in Asia, said the carrier was also talking to Mizuho Financial Group Ltd and Citibank. Softbank is expected to make a formal offer in June or July, Bloomberg added.

Sprint spokeswoman Roni Singleton told Reuters the company does not comment on rumors and speculation. T-Mobile and SoftBank both declined to comment on the Bloomberg report.

Sprint is facing a battle ahead with U.S. regulators who oppose consolidation in the wireless market on the basis it would inhibit competition. The company is aware it may have to give up some of its spectrum holdings to win over critics, the source said.

Two of the most vocal opponents to the deal are Federal Communications Commission Chairman Tom Wheeler and U.S. antitrust chief William Baer, who have pointed to T-Mobile’s success since U.S. authorities rejected a 2011 merger between AT&T Inc and T-Mobile on the grounds the market needs at least four major players to be competitive.

The failure of that deal cost AT&T a $6 billion break-up fee, a penalty Sprint feels confident it can avoid, the source said, adding that it is leaning towards having Deutsche Telekom, which currently owns 67 percent of T-Mobile, retain part of that stake.

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at@t Wants More

AT&T plans to buy NextWave Wireless, a holder of spectrum that could be used for mobile data services, for about $600 million.

NextWave owns licenses for spectrum in both the WCS (Wireless Communications Services) and the AWS (Advanced Wireless Services) band. AT&T said in a press release it plans to use that spectrum to feed “skyrocketing” demand for mobile data, but it will have to wait for an ongoing Federal Communications Commission review before it can take advantage of the WCS band.

The FCC auctioned WCS spectrum in 1997, but it has not been used for mobile data because of rules designed to prevent interference with satellite users in adjacent bands, AT&T said. In June, AT&T and satellite radio company Sirius XM filed a proposal to the FCC for using WCS while protecting the nearby satellite users, but the agency is still reviewing that plan. If it is approved, AT&T hopes to start using the WCS band in about three years.

The NextWave deal is only the latest in a series of moves by big mobile operators to secure more spectrum. AT&T characterized its proposed merger with T-Mobile USA last year, which was opposed by the FCC and other regulators, as first and foremost a deal to acquire spectrum. Verizon Wireless announced a deal earlier this year, which is still under FCC review, to acquire unused wireless licenses from major U.S. cable operators.

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Dish Seeks To Add Cellular Services

Satellite TV provider Dish Network is aiming to build a 4G cellular network, if the U.S. Federal Communications Commission grants its permission, according to a filing the satellite provider made on Monday.

Dish, which earlier this year completed an acquisition of bankrupt satellite mobile operator TerreStar, asked the FCC to transfer TerreStar’s frequency licenses to a Dish subsidiary and to allow Dish to use the spectrum to build a broadband wireless network that it could then use to offer standalone cellular services.

Combined with spectrum Dish acquired in a separate deal to buy DBSD North America, the satellite provider wants to build a network using LTE, the technology of choice for most of the nationwide mobile phone operators, it wrote.

But it needs special permission from the FCC to offer standalone cellular service–as opposed to a service that is integrated with satellite service–and says it is crucial that it be allowed to do so.

“The requirement to make every device dual-mode severely limits a provider’s ability to enter into arrangements with multiple device and equipment manufacturers, thereby limiting consumer choice and severely impairing the business case economics,” Dish wrote.

The company also argued that customers want the choice of a smaller, lighter device with long battery life. Adding satellite capabilities to devices makes them heavier and reduces battery life. “Today, a mobile voice and data provider’s ability to attract customers depends in large measure on its ability to provide its customers with the types of devices that best suit their needs,” it wrote.

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India Wants To Monitor Twitter & Facebook

India’s Communications Ministry has received a request from the Home Ministry to monitor social networking websites such as Twitter and Facebook amid fears that the services are being used by terrorists to organize attacks.

The request suggests that the Indian government is trying to expand the scope of its online surveillance for national security purposes.

Telecommunications service providers in India provide facilities for lawful interception and monitoring of communications on their network, including communications from social networking websites such as Facebook and Twitter, in accordance with their license agreements, Milind Deora, the minister of state for communications and IT, told Parliament, according to the country’s Press Information Bureau.

But there are certain communications which are encrypted, Deora said Friday.

The government did not provide details of what encrypted data they would like to have access to. A spokesman for the home ministry said on Monday that additional
information can only be provided in Parliament while it is in session.

Under new rules to the country’s IT Act that came into force earlier this year, websites and service providers are required to provide government security agencies with information on private accounts, including passwords, on request without a court order.

Most companies, however, are not willing to share information with law enforcement agencies unless they have a court order.

Twitter states in its guidelines for law enforcement that “non-public information about Twitter users is not released unless we have received a subpoena, court order, or other valid legal process document.”

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Mobile Networks Near Capacity

Mobile networks in North America are using 80 percent of capacity, with 36 percent of base stations facing capacity constraints, according to a survey by investment firm Credit Suisse.

Networks in other regions also are more than 50 percent utilized, with the global average at 65 percent, Credit Suisse said after surveying carriers around the world. That level of use matches the average “threshold” rate that would trigger the service providers to start buying more network equipment, the report said. Looking ahead, on average the carriers expected their utilization rate to grow to 70 percent within 12 months.

Credit Suisse used the results to predict new sales by makers of cellular equipment, such as Ericsson, Alcatel-Lucent, Nokia Siemens Networks and Huawei Technologies. But at a certain level, heavy use of a base station can also affect the mobile experience of individual subscribers. The survey found that 23 percent of base stations worldwide had capacity constraints (defined as a utilization rate over 80 percent during busy hours), while 36 percent in North America were under that kind of pressure.

The North American networks were 72 percent utilized two years ago. The region’s carriers expect the rate to ease back down to that point within two years. North American service providers are likely to buy more equipment soon, because having their networks 74 percent filled is the threshold rate in that region, the survey said.

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