FCC Chairman Tom Wheeler’s policy speech Monday (CD...
FCC Chairman Tom Wheeler’s policy speech Monday (CD Dec 3 p1) demonstrated “openness toward improved carrier monetization of broadband ... but also a strong commitment to promoting competition among networks,” wrote analyst Paul Gallant of Guggenheim Partners in a research…
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note Tuesday. Wheeler indicated his support for reasonable usage-based pricing and quality-of-service deals, but Gallant noted reason for “slight caution": Wheeler’s pronouncement (http://bit.ly/188rYRk) that companies have “control over their own regulatory fates” could be read as “signaling cable operators not to deploy broadband pricing that is clearly aimed at deterring [over-the-top] entry.” Wheeler’s comments about permitting broadband providers to explore “two-sided markets” are “encouraging for wireline and wireless ISPs,” but it’s not yet clear how far ISPs will be able to go “to persuade content/apps companies to do deals,” Gallant said. Gallant cautioned that mergers and acquisitions “may not be easy,” given Wheeler’s endorsement of the agency’s 2011 rejection of AT&T buying T-Mobile. “We view these comments as quite noteworthy because, as a [venture capitalist] in 2011, he blogged that he would have approved AT&T/T-Mobile in order to establish certain merger conditions he favored,” wrote the analyst. He said Wheeler was also “negative” toward a possible Sprint/T-Mobile merger. The Department of Justice and the FCC “probably would seek to block any effort by Sprint to acquire T-Mobile,” wrote Gallant. Wheeler seemed to favor limits on how much broadcast spectrum Verizon and AT&T can buy, Gallant said. Wheeler’s comments about not rushing into a broadcast auction “support our expectation for a mid-2015 spectrum auction,” Gallant said. Gallant was concerned about Wheeler’s “vaguely ominous comments” when he said he would “not hesitate to invoke the full authority granted to us by Congress to protect competition.” That could portend Title II classification for wireline broadband, or limiting content companies from leveraging their power over distribution, Gallant said.