The Netflix boogeyman and a 21st-century role for the CRTC

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“Though some intervenors think this proceeding is all about Netflix, it’s not.” –Corie Wright of Netflix

“If the Commission fails to act swiftly after this proceeding, a service such as Netflix will become … one of the largest broadcasters in this country in the near future.” –Pierre Dion, CEO, Quebecor

“Canadian consumers can rest assured that our government will continue to stand up for them. We will not allow any moves to impose new regulations and taxes on Internet video that would create a Netflix and YouTube tax.” –Shelly Glover, Minister of Canadian Heritage

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The thesis: Netflix has handed the CRTC a new lease on life

CRTC ordered Netflix to share its highly sensitive Canadian customer data. Netflix demurred (“stonewalled” by some accounts). The Commission has responded by making Netflix disappear from the history books, expunging its official testimony. Does that mean, as we read recently, that “It’s over, CRTC, Netflix and globalization have won”? Continue reading

Net neutrality now as momentous as Janet Jackson’s nipple (2)

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Happy updates (July 25)

1) Ms Marsha. One of the best illustrations of the political clout wielded by the incumbent US broadband providers lies in their ability to kill any attempt at the creation of muni broadband networks. Twenty states have passed laws banning public-sector broadband alternatives, encouraged by the industry lobbies and those who might be harmed by competition, like poor, struggling Comcast. As I note in the 2nd para below, Marsha Blackburn of Tennessee is one of the great congressional champions of this free-market exercise. She is more determined than ever to ensure nobody in her own state or any state ever gets better, more affordable service. Such is her reputation that in a comment posted to a story in Ars yesterday, a reader added this apology:

A bit off topic: As a Tennessee state resident, I’d like to personally apologize to the rest of the country, hell the world maybe for that matter, for Marsha Blackburn. Another fine example of what you can buy of [sic] you are a corporation with enough money to line the right pockets.

On the upside, Brodkin’s story is entitled “FCC gets its chance to overturn state limits on broadband competition” – reporting on a petition to the FCC from a community-owned electric utility to overturn the state law barring it from providing fiber-based Internet access – in Chattanooga (Tennessee!).

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2) Transparency enforcement. And in other good news related to policing the ISPs, the FCC on Wednesday issued an Enforcement Advisory that holds two surprises. The FCC will fine any broadband provider that intentionally misleads its customers; and the rule behind this notice is one of the few survivors of the DC Circuit appeal by Verizon that vacated most of the 2010 Open Internet Order. The advisory begins thusly:

Providers of broadband Internet access services must disclose accurate information about their service offerings and make this information accessible to the public. This requirement, known as the Open Internet Transparency Rule, has been in full force and effect since 2011. The Transparency Rule ensures that consumers have access to information that helps them make informed choices about the broadband Internet access services they buy, so that consumers are not misled or surprised by the quality or cost of the services they actually receive.

I’ve uploaded the pdf here.

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How about we blame the Republicans instead? (cont’d)

As I was saying in the previous post, FCC Chairman Tom Wheeler should not be getting the rap for the open Internet NPRM issued in May. Especially not for his alleged determination to push through paid prioritization, since a) Wheeler has plainly disavowed it, and b) the Notice spends far more time analyzing other issues I see as a greater threat, like the utter lack of transparency or accountability in what broadband providers sell to the public. And picking this fight with paid prioritization is going to do nothing for the pro-Internet movement in the US or elsewhere (NPRM pdf here).

rep.-blackburn-2Instead, say I, opponents of the big-business, anti-consumer school of thought should pay more attention to what the black hats are saying – who, for convenience, we’ll call “Republicans.” These guys include a broad swath of personalities, from the FCC’s two Republican Commissioners, to the incumbents like Verizon that want no regulation and lots of “flexibility,” to my favorite right-wing curmudgeon, Marsha Blackburn, the Tennessee congresswoman who has succeded in getting a bill passed to call a halt to all that outrageous muni broadband that competes with Comcast, TWC et al. They have main three arguments, all of them pure sophistry, but great headline-grabbers. Continue reading

“Neutrality” ruckus prompts FCC inquiry on broadband and congestion

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“We can’t have a situation in which the corporate duopoly dictates the future of the Internet and that’s why I’m supporting what’s called net neutrality.” — Barack Obama, podcast, June 2006

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[June 19: So much for pruning – added 300 words in corrections and background.]

On Friday, June 13, FCC Chairman Tom Wheeler made a short but dramatic statement headlined Broadband Consumers and Internet Congestion. Though barely 450 words long and presented outside any formal setting, Wheeler’s reaction to the public hue and cry over the reliability of retail broadband in the US marks an important step forward for end-user welfare. His announcement puts the lie to the vehement criticisms levelled at him about his betrayal of the Open Internet concept (the FCC’s term of art for net neutrality).

Many of his critics also assumed that the Wheeler FCC would never look into paid peering arrangements – well, they actually said they wouldn’t (“… the rules we propose today reflect the scope of the 2010 Open Internet Order, which applied to broadband provider conduct within its own network.” NPRM, fn 113 – pdf uploaded here). That is what Wheeler has now directed Commission staff to do (request “information from ISPs and content providers”).

While the American public are clearly confused by the net neutrality debate, and for good reason, many ISP subscribers have begun to question whether they’re getting the broadband they’re paying for – whatever the underlying business and technical issues may be. Excerpts from Wheeler’s statement follow (the full pdf is uploaded here):

“For some time now we have been talking about protecting Internet consumers. At the heart of this is whether Internet Service Providers (ISPs) that provide connectivity in the final mile to the home can advantage or disadvantage content providers, and therefore advantage or disadvantage consumers. … 

“Consumers must get what they pay for. As the consumer’s representative we need to know what is going on. I have therefore directed the Commission staff to obtain the information we need to understand precisely what is happening in order to understand whether consumers are being harmed. … 

“The bottom line is that consumers need to understand what is occurring when the Internet service they’ve paid for does not adequately deliver the content they desire, especially content they’ve also paid for. In this instance, it is about what happens where the ISP connects to the Internet. It’s important that we know – and that consumers know.” 

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Continue reading

Klass complaint to CRTC on Bell’s Mobile TV winds up – for now

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Subject: Part 1 application by Benjamin Klass requesting the fair treatment of Internet services by Bell Mobility (Klass application) and Part 1 Applications by CAC-COSCO-PIAC regarding Rogers’ Anyplace TV service and Vidéotron’s Illico.tv Service (CRTC files 8622-B92 201316646, 8622-P8-201400142 and 8622-P8-201400134). 

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Yesterday was the deadline for final reply comments on the Part 1 Application filed last November by Ben Klass. I wrote several posts on Ben’s initiative, starting with this one on November 24, 2013. My second and final submission is pasted in below (with a few copy edits; paragraph numbers remain).

The case brought by Ben is a good opportunity for the Commission to see how its ex-post regime for handling ISP and WSP misdeeds is working. Thus, while I hope the Commission gives Ben his due, I also hope it takes a long hard look at the bigger picture, i.e. the status of the mobile TV services operated by both Rogers (RAP-TV) and Vidéotron (illico mobile), in addition to Bell’s Mobile TV. Continue reading

The CRTC tries to drag our TV “system” into the 21st century

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The public hearing announced by the CRTC last week (Broadcasting Notice of Consultation CRTC 2014-190) came with two other newsworthy documents.

One is the Commission’s trial balloon on instituting a pick-and-pay system for TV subscribers, which takes the official form of the CRTC’s Response to Order in Council P.C 2013-1167 (“Maximizing the ability of Canadian consumers to subscribe to discretionary services on a service by service basis” – here). This document contains the seeds of what might be a significant reform to the channel-bundling model. Continue reading

CRTC demands answers from Bell on its Mobile TV shellgame

mirko-bibic-1Bell’s CRTC whisperer, Mirko Bibic, got bent out of shape when he saw the CRTC’s annoying interrogatories Friday morning

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Today saw another encouraging step in the CRTC’s management of the Ben Klass Part 1 application on Bell’s Mobile TV service. You can get the backstory in my prior posts (first one was in November) and from Ben’s blog, among other places.

That step was the interrogatories sent to Bell officials, asking for detailed information on Bell’s network architecture, subscriber invoicing, content exclusivity and competition, among other things. I’ve pasted in all 10 of the Commission’s questions below. A couple of comments in the meantime…

bell-mobileTVimageFirst off, the language of the questions demonstrates that the Commission is taking Ben’s application to heart, and that it sees a prima facie case against Bell for violating telecom rules. On one crucial point, whether Mobile TV is simply a broadcasting service as Bell claims, the Commission staff want to hear an explanation of the “inconsistency” in Bell’s statements on this matter – as well as of “how a data service that uses the Internet is not a telecommunications service” (yes, Bell argues that its quacking duck ain’t no water fowl no how). Continue reading

European Parliament votes 534 to 25 for network neutrality

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Here in Canada, our idea of a free and open Internet is being held hostage by the CRTC. Its TV Talks consultation makes it very clear that a non-discriminatory Internet is going to continue to play backseat to our quaint, moribund notion of TV culture – which Ottawa thinks is still holding the country together from sea to shining sea.

In a far more vociferous debate on net neutrality, the US open Internet community has been pitted against the outré posturings of many Republicans, who want their government to stay in the business of regulating the Internet through ICANN, but condemn the FCC’s latest attempt to revive its Open Internet Order as a form of censorship, an innovation killer and a solution in search of a problem. The Republicans have ingeniously, and disingenuously, co-opted the the whole notion of a free and open Internet in their current lingo, while winning headline battles by turning every attempt to protect innovation, free speech and access to bandwidth as part of the unspeakable idea of… gasp, regulating the Internet!

PilardelCastilloVera-1Meanwhile, earlier today, the European Parliament voted by an overwhelming majority to pass the report tabled by member Pilar del Castillo Vera of Spain that outlines a strong, unambiguous framework for protecting EU citizens from unwarranted discrimination on the Internet. The European support for net neutrality, which may still wait months for endorsement by member nations, is dripping with irony. (The release page is here, excerpt below.) Continue reading

What you don’t know about your ISP service will hurt you (2/2)

teksavvy_infographic-3Infographic released by TekSavvy in February, from omnibus survey by IDC Canada

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(Please see previous post for the setup to this one)

In early February, TekSavvy released the results of five survey questions fielded by IDC Canada on its behalf, which probed for attitudes to Internet service among Canadians. In keeping with its White Knight role, the maverick ISP is not only going Ottawa one better on the research. TekSavvy also took the opportunity to launch a new tool to help customers navigate the decisions involved in choosing a particular access plan. They call it Find Your Plan and apparently people like it.

Tina-2I spoke recently about this initiative to Tina Furlan, TekSavvy’s Director of Marketing and Communications, and the brains behind last year’s dramatic rebranding. The two main questions on my mind concerned a) why her team decided to plunge into the research game, and b) were they surprised by the results. Tina points out that TSI’s subscriber base across Canada (for all services) is now close to 270,000. Naturally, with that kind of growth, its traditional customer base of younger, techie males has broadened into a more mainstream and technically unsophisticated group, the very end-users who are especially puzzled and frustrated by all the bafflegab ISPs usually throw at them. Continue reading