Analyst: Top-10 Policy Issues

With the 2012 Presidential election right around the corner, several policy issues loom for cable and the communications industry at large. Spectrum reigns supreme, wireless struggles to meet demand, and Verizon and DISH continue to dominate the headlines. Voters could swing key FCC policy issues in several critical sectors, and Stifel Nicholaus analyst Chris King says keep a close eye on the following top-10 topics as election season draws near.

1) Verizon Wireless/SpectrumCo. Reviews: Verizon's planned cable spectrum buy - and the two sides' cross-marketing agreements - seem destined for approval, but with a growing amount of concessions.

2) DISH's 2GHz Ruling: King says the FCC is likely to give DISH terrestrial rights to 40 MHz 1) with build-out duties; and 2) without "radical changes to spectrum use." The stage is set for possible deals, the analyst said, but LightSquared remains on life support.

3) FCC Broadband Authority: The FCC may give broadband providers "leeway on data caps and usage-based pricing," but the DOJ may have something to say about cable's 'managed services' strategy.

4) Spectrum Act: The FCC wants incentive auctions... but it will take years. Issues, says King, include: spectrum limits targeting the Bells, public-safety network buildout will take time, and Verizon seems well positioned.

5) Gov't Bands: Carriers may want to pair 1755-1780 MHz, but federal uses, King says, "are hurdles." Focus is on spectrum sharing, the analyst notes, but carriers want to clear as much as possible.

6) Video Rules: The FCC may rewrite retrans rules and program access, but OVDs could blow up the whole deal. Throw in court cases from Aereo and DISH's Ad-Hopper... and Congress may have to get involved.

7) Special Access: Bells continue to face risk from new regulatory constraints from the FCC.

8) 700 MHz: Can rivals settle on interoperability? A possible AT&T purchase of VZ spectrum could help, King says, but Verizon's data-roaming case another challenge for FCC authority.

9) USF/ICC Reform: 1) Price-cap telcos await initial funding decision; 2) FCC is working on auctions; 3) RLECs want waivers; 4) USF reform and interstate ICC authority is being challenged in court; and 5) USF contributions are under review.

10) Taxes: The current 15% dividend tax rate is "a key issue for telcos," as the fate of several tax issues are closely tied to Presidential election results. •

Want more insights into the morphing world of media? Don't miss MediaBiz's June issue of The BRIDGE... hot off the press. •

Tech Firm Pushes Cord-Cutting

Antenna tech firm Antennas Direct is using the promise of cord-cutting to promote a new partnership with FAVE TV - the latest internet-connected STB. The company says through its new OTT console, "prime time channels" made unavailable by canceling a cable TV subscription are now readily accessible without the monthly fees.

Saying they're committed to helping America cut the cord, Antennas Direct is launching its FAVE TV connected "compliment" to over-the-air (OTA) programming. The company says channels available on the device includes "prime" networks including Fox News, Fox Business, The Hallmark Channel, PBS Kids Sprout, NFL Network, MLB Network,  NBC Sports, NBA TV, PIXL, The Weather Channel, HSN and The Outdoor Channel.

Owned and operated by SkyAngel, FAVE TV offers "an alternative to traditional cable and satellite" as a "family-minded" solution. "The reign of cable companies is coming to an end," says Antennas Direct President Richard Schneider.  •

Supremes Rule in TWC's Favor - TV Ad Spend Up - Did BSkyB Pay Too Much?

In Court: The U.S. Supreme Court refused to revive an old law in Texas that kept cable providers (including Time Warner Cable) from opting out of their municipal franchise contracts. “Promoting competition bears no relationship” to the rule requiring companies (such as TWC) to keep their municipal contracts, the court said. Bloomberg has details.

Rules & Regs: FCC Chairman Julius Genachowski wants the agency to investigate whether current regulations are doing enough to protect consumers from cell-phone radiation. --- The Sunlight Foundation says hey, NAB, Time Warner Cable posts its political info online... so what's your problem? Read more.

Advertising: Kantar Media says advertisers spent $17.8B on TV spots during Q1, up from $16.5B during the first three months of 2011. Broadcast TV lead the way with an increase in ad sales revenue of 7% to $6B, followed by cable nets' 7% bump to $5.72B.  --- Online political ad spend is expected to bloom by more than $22M over 2008 levels. eMarketer says 35% of men prefer getting their political news online, also up 10% from 2008. --- The DIRECTV folks keeps cranking out funny ads. Check out AdWeek's coverage of the guy who faked his own death... only to pop up on Facebook.

Service: Charter said it is adding 27 HD channels to its line-up in Central Minnesota, bringing its total to more than 100. --- Verizon officially launched its new bundled packages for increased internet speeds. Check out this video. --- Verizon Wireless is expanding its 4G LTE service in Oneonta and Cooperstown. --- Time Warner Cable extended its partnership with educational non-profit CFY through 2013 to continue providing low-income families in NYC with low-cost internet service.

Tech: Mobile software solutions provider Bianor launched its iMediaShare app for the iPad that enables users to shift online content from the tablet to a home TV set.

WebTV: University of California YouTube channel UCTV is featuring a new program called "Our Digital Life," a series examining how researchers are using cutting-edge technology to study everything from archeology, engineering, psychology and more. Fridays through June. --- The Wall Street Journal launched a new online weekly politics show called "DC Bureau." The program is hosted by Jeff Seib, the newspaper's Washington, D.C., bureau chief. --- Alloy Digital acquired YouTube's top entertainment news provider, Clevver Media. With the move, Alloy Digital's owned and operated channels now reach more than 8M YouTube subs. Financial details were unavailable.

Programming: Hallmark Channel will premiere its original movie "Puppy Love" on Sept. 8 as part of the network's Pet Project - an initiative to help homeless pets find adoptions. We like the cause. --- BounceTV is celebrating Juneteenth by airing "The Autobiography of Miss Jane Pittman" tonight at 8pm (ET). The program, which hasn't aired in 30 years, is considered to be one of the first made-for-TV movies to portray lead African-American characters. --- BlueHighways TV is partnering with Rural Rhythm Records to produce "Christmas: The Mountain Way," a live performance musical show that celebrates Christmas in the Appalachian Mountains.

Research: NPD Group says 27% of TV sets shipped worldwide now have internet connectivity, and total global shipments is poised to eclipse 138M units by 2015. By region, the firm says China leads the way with 3M units shipped, followed by Western Europe (2.1M) and North America (1.4M). --- More doom and gloom for Facebook? A new survey from Gazelle shows that when asked which device or platform they could not "live without," 65% of users chose iPhone vs. 1% for Facebook. --- CableFAX Daily reported a tie-up between Comcast Xfinity and Nielsen to track 2nd (starting with iPad2 with Xfinity app and more) screens.

Over, Up, & Under: BSkyB shares tumbled by 8% late last week after the company unveiled its £3B ($4.7B) purchase of live broadcasting rights to the Premiere League. The new price-tag represents a 70% increase over the EPL rights package it currently shares with ESPN. In other Sky news, the company signed a new deal with Miramax for rights to stream the studio's film and TV titles. --- ARRIS said South Korean telco SK Broadband is now deploying IPv6 service to customers across its HFC network.

People: FCC Chairman Julius Genachowski announced that current Wireline Competition Bureau Chief Sharon Gillett is stepping down. Gillett will be replaced by Julie Veach, current Deputy General Counsel in the Office of General Counsel, effective June 30. --- Univision said it is expanding its distribution sales & marketing team to increase its multiplatform strategy. The company named Rob Thun as EVP of operations, Renee Plato as SVP of digital distribution, Sarah Madigan has SVP of business affairs, and Carlos Alimurung as VP of digital distribution.

Letters to the Editor (re: Monday's Maxwell): See the same all over Europe with respect to the 'non-respect' for others when driving. Hopefully some day a smartphone will be smart enough to know one is driving and will refuse to work. Would be a great app for parents to lock into their kids phones as well. Almost got hit the other day on my bike by some clown jabbering on a phone and not looking when turning into a side road. Traffic signals are a totally different thing: Green means go, orange means go faster and red means go like hell. -Bob Block

--- Catch today's media market news in The Evening BRIDGE. •