Net Neutrality Vote Coming Next Month

The U.S. Federal Communications Commission will finally vote on new net neutrality rules in their February meeting.

FCC Chairman Tom Wheeler will bring a proposal to a vote during the commission’s Feb. 26 meeting, FCC spokeswoman Kim Hart said Friday, following a report in the Washington Post.

It’s unclear, however, what form those rules will take. Hart declined to comment further on the net neutrality order Wheeler plans to circulate in February.

Many telecom policy experts had expected the FCC to take action on net neutrality early this year after a year-long fight over the issue.

Nearly a year ago, a U.S. appeals court threw out a large portion of net neutrality rules the FCC approved in late 2010. The court ruled that the FCC’s rules came too close to common carrier regulations when the commission didn’t take the step of reclassifying broadband providers as regulated utilities. The court, however, pointed to a couple if sections of the Telecommunications Act that the FCC could use to pass net neutrality regulations.

After launching a net neutrality proceeding in early 2014, the FCC has received nearly 4 million public comments about proposed regulations. Wheeler originally proposed that the FCC adopt rules that would allow broadband providers to engage in “commercially reasonable” traffic management, and in limited cases, charge Web content providers and services for prioritized traffic.

But many people filing comments, and groups like Free Press and Public Knowledge, called on the FCC to pass stronger rules prohibiting traffic prioritization deals. Many advocates of strong net neutrality rules want the FCC to reclassify broadband as a regulated public utility, while exempting them from some common carrier rules, like price regulation.

Recent news reports have suggested Wheeler is leaning toward so-called hybrid net neutrality rules that would classify a part of broadband service as a regulated public utility.

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Will Verizon Throttle Users?

Verizon Wireless backed away from a widely criticized plan to slow down the connections of heavy data users with unlimited LTE plans.

The carrier had announced in July it would extend a practice it calls network optimization to unlimited LTE subscribers starting in October. Network optimization targets the top 5 percent of data users on the network when a cell site is under the heaviest demand, and slows down those users’ network performance. Verizon had already applied the practice to the top users of its 3G network.

“We’ve greatly valued the ongoing dialogue over the past several months concerning network optimization and we’ve decided not to move forward with the planned implementation of network optimization for 4G LTE customers on unlimited plans,” the carrier said in a statement on Wednesday. “Exceptional network service will always be our priority and we remain committed to working closely with industry stakeholders to manage broadband issues so that American consumers get the world-class mobile service they expect and value.”

U.S. Federal Communications Commission Chairman Tom Wheeler attacked the plan in a letter to Verizon, suggesting it was a ploy to get customers to switch from their unlimited plans to ones with a cap on monthly data usage. Verizon no longer sells new unlimited plans but allows subscribers with those plans to keep them.

“I know of no past Commission statement that would treat as ‘reasonable network management’ a decision to slow traffic to a user who has paid, after all, for ‘unlimited’ service,” Wheeler wrote in the late July letter to Verizon Wireless President and CEO Dan Mead.

Digital rights group Public Knowledge also attacked so-called data throttling, as well as practices by AT&T, Sprint and T-Mobile USA.

The showdown demonstrated the tension over increasing demand for mobile data, which carriers say puts a strain on their networks. Among other things, that demand has led operators to seek ever more spectrum and apply network management techniques they say are necessary to keep serving all subscribers well. Though LTE makes much more efficient use of the airwaves than 3G does, LTE networks are serving a rapidly growing number of subscribers.

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Mobile Carriers Dash To Enter FCC Auction

Three of the four largest U.S. mobile operators and satellite provider Dish Network Corp plan to bid in the Federal Communications Commission’s November auction of airwaves, according to initial applications released on Wednesday.

As expected, the largest U.S. wireless carrier Verizon Communications Inc, No. 2 AT&T Inc, No. 4 T-Mobile US Inc and Dish appeared to be the largest companies to indicate an interest in bidding in the upcoming auction of frequencies known as AWS-3.

Applications from Northstar Wireless LLC and SNR Wireless LicenseCo LLC reported they had entered bidding agreements with Dish, which had indirect ownership interest in both companies.

Northstar’s disclosures showed direct and indirect ownership interest by Alaska Native corporation Doyon Ltd and indirect ownership interest by financial firm Catalyst Investors. Asset manager BlackRock Inc had membership shares in SNR, according to the documents.

T-Mobile and AT&T did not appear to plan joint bids with other companies, and T-Mobile’s Kathleen Ham, vice president of federal regulatory affairs, said the carrier had no such agreements with any company.

A Verizon spokesman did not respond to inquiries about potential joint bidding and Dish representatives declined comment beyond confirming the submission of its application, citing FCC’s anti-collusion rules.

A total of 80 entities submitted initial applications. Interested parties, which may or may not actually bid for wireless licenses in the auction, included smaller U.S. companies such as Bluegrass Wireless LLC, Guam-based wireless company Docomo Pacific Inc and individual spectrum investors.

Scheduled to begin on Nov. 13, the auction is expected to raise at least $10 billion and will include airwaves previously occupied by multiple federal users, including the Department of Homeland Security.

Dish applied to bid in the auction as American AWS-3 Wireless I LLC and disclosed joint bidding arrangements with SNR and Northstar, which in turn had to disclose ownership and other information.

SNR listed former FCC Wireless Bureau Chief John Muleta, now CEO of consulting firm Atelum LLC, as a contact. Muleta, reached late on Wednesday, declined comment, citing FCC’s restrictions.

Northstar’s disclosures listed Allen Todd, assistant secretary at Doyon, a Fairbanks-based Alaska Native Regional Corporation with numerous affiliates in various fields including oil and gas land drilling. Todd could not be reached for comment on Wednesday.

SNR’s and Northstar’s, as well as AT&T’s, initial application appeared to be incomplete, which can be caused by small bureaucratic omissions. Of the 80 applications, 47 were deemed incomplete and have to be properly finished by Oct. 15 to allow the companies to participate.

All initial applications have to put down an upfront payment by Oct. 15 to confirm participation.

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Will Sprint Cut It’s Staff?

Sprint’s new CEO Marcelo Claure addressed employees for the first time and promised price reductions are coming very soon, according to a report.

Sprint didn’t deny the report of Marcelo’s comments. A spokesman also confirmed Friday that Sprint is “focusing on providing the best value in the market.”

According to the account of Claure’s comments, he told workers, “We’re going to change our plans to make sure every customer in America thinks twice about signing up to a competitor.” The report, which first appeared in LightReading.com, also said that “very disruptive” rate plans are coming this week.

Sprint didn’t dispute Light Reading’s report, but a spokesman said Sprint is not commenting on “any potential pricing plans before they are announced.”

The spokesman, Doug Duvall, said Marcelo held his first all-employee town hall meeting before a standing-room-only crowd. He added: “He shared his passion for his family, work and soccer team and his commitment to leading Sprint. He discussed Sprint’s challenges and pledged to get Sprint ‘back in the game’ by focusing on providing the best value in the market, completing our network build and optimizing Sprint’s cost structure.”

By confirming Sprint wants to offer the “best value in the market,” it’s pretty clear that Sprint, the third-largest U.S. carrier, will soon wage a price war with the T-Mobile, the fourth-largest U.S. carrier that has quickly been gaining on Sprint.

Analysts recently said Sprint’s recent “Framily plan” isn’t competitive in the market, which former CEO Dan Hesse acknowledged in late July before his departure on Monday.

The Sprint Framily plans costs $160 a month for 4GB of data, but comes with overage charges and won’t allow tethering. Meanwhile, T-Mobile has a family plan offered through September that costs $100 a month for four lines and 10GB of data, although each line is limited to 2.5GB.

Hesse had earlier described subscriber plans Sprint was testing that have tiers of data and unlimited data.

According to Light Reading, Claure also told employees that price cuts are needed because Sprint’s network isn’t at the level of performance and reach that it should be. “When you have a great network, you don’t have to compete on price,” he reportedly said. “When your network is behind, unfortunately you have to compete on value and price.”

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FCC Mandates Text-To-911

The U.S. Federal Communications Commission voted last week to require U.S. mobile carriers and many text-messaging apps to support functionality that allows texting emergency dispatch centers, even after questions about whether the centers will be ready by the deadline.

The commission’s vote requires U.S. mobile carriers and some texting apps to put emergency text-to-911 functionality in place by the end of the year.

Even though the nation’s four largest mobile carriers have all added text-to-911 functionality this year, less than 2 percent of the nation’s 6,800 emergency dispatch centers are ready to receive texts, said Commissioner Ajit Pai. The commission’s action will give smartphone users the impression they can send text to emergency responders, when many will not be able to, he said.

The FCC’s action “encourages the public to dive into text-to-911 functionality, when in reality, there’s hardly any water in the pool,” Pai said. “The order is sure to result in massive consumer confusion, and therefore will endanger, rather than advance, public safety.”

FCC Chairman Tom Wheeler applauded the largest mobile carriers — Verizon Wireless, AT&T, Sprint and T-Mobile USA — for adding text-to-911 functionality. The agency needs to push other carriers and emergency dispatch centers, called public-safety answering points or PSAPs, to do the same, he added.

“A lot of time of has passed since [the four largest] carriers stepped up and did something voluntarily, and the other carriers serving the consumers of America did not,” he said. “If you don’t step up to your responsibility, we will.”

Smartphone users should still call 911 if possible, but text-to-911 services need to be more widely available, Wheeler said.

The adoption of text-to-911 will let smartphone users contact police and other emergency responders when it’s not safe to talk on the phone, Wheeler said. It will also aid people with hearing or speech disabilities, he noted.

“Texting is now as important a function on a mobile device as talking,” Wheeler said. “Some of those text messages are cries for help.”

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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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T Mobile Sees Growth

T-Mobile US has reported a fourth-quarter boost in customer growth and offered to pay customers to ditch rival service providers, escalating already intense competition in the U.S. wireless market.

The company, the No. 4 U.S. mobile operator, promised payments of up to $350 per line to consumers who break their contract with any of its bigger rivals and switch to T-Mobile.

The offer came just days after AT&T Inc promised a $200 credit to T-Mobile customers who switch. While AT&T also offered up to $250 for switching customers who trade in their phone, T-Mobile said it would pay up to $300 for trade-ins.

The companies have been targeting each other because they use the same network technology, making it easy for consumers to bring their phone when they switch, but some on Wall Street are concerned they will cause an industry-wide price war.

T-Mobile said it hoped that whole families as well as individuals would switch to its service in response to the new cash offer, which is aimed at covering early contract termination fees typically charged by wireless operators.

John Legere, the outspoken chief executive of T-Mobile, said he hoped the offer would end the “industry scam” of family plans, which tie entire families into long-term contracts.

Legere joked that AT&T’s recent offer would actually play to T-Mobile’s advantage because it would allow AT&T customers to try a different service with less financial risk than before.

“If it doesn’t work they’ll pay you to come back,” Legere said in announcing the offer at the Consumer Electronics Show in Las Vegas.

T-Mobile, which is 67 percent owned by Deutsche Telekom, managed to turn the corner on four years of customers losses in 2013 by criticizing its rivals and promoting its service plans as being more flexible and consumer friendly.

It said it added 1.645 million net customers in the fourth quarter, up from 1.023 million in the quarter before, marking its third quarter of customer growth for 2013.

The fourth-quarter additions included 869,000 valuable post-paid customers, which was up 13 percent from the third quarter, according to the company.

It said customer defections, known in the industry as churn, stayed at third-quarter levels of 1.7 percent and compared with 2.5 percent in the fourth quarter of 2012.

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Microsoft Updates Azure

Microsoft has rolled out a major update to its Azure cloud computing service and said that it will match Amazon on price.

Last year Microsoft announced it would preview a host of changes to its Azure cloud computing service including new virtual machine configurations, a virtual private network and a new Azure software development kit. Now the firm has taken those features out of preview and made them generally available in what it is promoting as the largest single update to Windows Azure to date.

Since Microsoft announced most of the features in its “hybrid cloud” last June, the firm said the only changes from the preview release to today’s public release are higher memory capacity and higher performance compute nodes. However the firm touted its Windows Azure Virtual Network as a way for customers to view cloud based services as if those were located on their premises.

Microsoft couldn’t rely on features alone to take the fight to Amazon and its Web Services division. Amazon’s cloud service is the biggest rival to Microsoft Azure and has a reputation for cutting prices aggressively. Now Microsoft has said it will do the same in a bid “to take the price discussion off the table”.

Michael Newberry, Windows Azure lead at Microsoft UK said that companies are in a process of moving applications that presently reside on servers located in the office onto the cloud. He said, “It is important that we get them through the process, price shouldn’t be a barrier for the customer to choose the best cloud provider.

“At the end of the day it should be about different technical facilities, what is the right environment for a particular workload, a particular application scenario. And that’s why we wanted to take the price discussion off the table and say ‘look, we know prices are changing and this is a market that is developing, but lets make this about the best environment, the best architecture, the best cloud environment for your particular customer.”

Newberry said that Microsoft’s Windows Azure service will appeal to those customers who want to make use of existing applications rather than develop ones specifically for cloud deployment. He said, “With customers who have existing infrastructure, existing applications, existing datacenters, that’s not something they want to throwaway. They still want to take advantage of cloud technologies, either in terms of private cloud, or using the public cloud as a spiking mechanism – an overflow if you will – for their existing on premise environment.”

Microsoft has also started to offer support for Linux on its Azure cloud service. Newberry said customers should have no problem running open source software or Linux on its services. However the firm does see its Windows Azure cloud service being particularly enticing for those firms that already run their network infrastructure services using Microsoft’s software, such as Active Directory, SQL Server and Sharepoint.

With Microsoft saying it will match Amazon’s pricing, the cloud provider industry might start to see a focus on performance rather than simply competing on low prices to attract customers.

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GreenPeace Still After Apple

A Greenpeace study has revealed that Indian outsourcing firm Wipro made the biggest strides to becoming a greener company this year, while Apple continued to lag behind.

Greenpeace’s “Guide to Greener Electronics” is a 16 company ranking that sets out to discover what leading electronics firms are doing to reduce their impacts on the environment.

This year’s study found that Indian firm Wipro, which has a consumer electronics division, was making important progress toward becoming greener.

“There is not a single reason why companies like HP, Nokia and Apple can’t do what Wipro is doing,” Greenpeace’s IT analyst Casey Harrell said.

Wipro was ranked number one in Greenpeace’s survey because of its efforts to increase its use of renewable energy, bring energy efficient products to market, nail down an effective product take back strategy and advocate for better governmental energy standards.

Harrell said that advocacy is an important step companies should take to becoming more environmentally aware. However, he believes that many companies are not doing enough to get the government involved in green initiatives.

“These companies invest a lot of money in advocacy, just not for energy,” continued Harrell.

“They invest in advocacy for things like IP reform and tax reform, just not for energy policy reform.”

Greenpeace’s study criticized Apple for its lack of advocacy efforts. The environmental agency gave the Iphone maker a ranking of zero when it came to environmental protection advocacy.

Apple has previously been slammed by Greenpeace for its decision to use glued-in batteries in its latest Macbook devices.

While many US companies rated poorly on environmental advocacy, Harrell still held out hope that some firms will try to do more going forward. As an example for his optimism, Greenpeace’s IT analyst said that in 2010 HP came out against the controversial California Proposition 23.

Another key area that Greenpeace thinks electronic firms need to improve upon is the lack of proper warranties on devices. Harrell said that companies can make the most energy efficient products in the world but if consumers have to buy a new product each year it won’t matter.

“It is a huge problem,” said Harrell.

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Verizon Introduces HSN For Financial Firms

Verizon on Wednesday launched a new low-latency network for financial services firms that can complete a stock transaction between New York and Chicago in as little as 14.5 milliseconds.

The new Verizon Financial Network Premier Low-Latency Service shaves as much as 5 milliseconds off the company’s current offering, a change that can translate into millions of dollars for high-frequency traders.

The new service, which becomes part of the Verizon Financial Network, uses higher performance networking technology from Ciena and takes the shortest possible path between the two metropolitan areas, according to Verizon.

Verizon is targeting the service to global banks, hedge funds, pre- and post-trade service firms and money managers who use high-performance computing algorithms and networks for speedy transactions.

High-frequency trading firms require low-latency networks to execute arbitrage transactions and algorithmic trading with minimal delay. Fiber distance between trading locations introduces latency, as does the equipment used to light the fiber.

Verizon plans on expanding the new high-speed network to other U.S. markets later this year.

CME Group, a financial derivatives marketplace, plans to use the new Verizon service in its Aurora, Ill., data and colocation center to enable companies in Chicago and New York to trade on CME Group’s platforms and more quickly exchange market data.

“We’re creating a secure, reliable high-speed path along one of the busiest financial trading routes,” Chandan Sharma, managing director of Verizon’s financial vertical markets, said in a statement.

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