Tom Wheeler met this week with Andy Berke, mayor of Chattanooga, Tennessee, to discuss the power of networks in driving economic growth. In an FCC Blog post titled “Removing Barriers to Competitive Community Broadband,” Wheeler writes about Chattanooga’s history and Berke’s recognition that tomorrow’s economic growth will be reliant upon effective high-speed networks, which is why the city “invested in building out one of the nation’s most robust community broadband networks.” Continue reading FCC Chair Tom Wheeler on the Power of Community Broadband

Last week it was reported that Netflix had begun posting on-screen messages blaming Verizon for congestion that was slowing video streams. While Netflix claims the message was simply one step in notifying customers about how an ISP can impact the viewing experience, Verizon described the move as “a PR stunt” and suggested the message “is not only inaccurate, it is deliberately misleading.” Later in the week, Verizon sent a cease and desist letter to Netflix. Continue reading Streaming Delay Messages: Verizon Threatens to Sue Netflix

SoftBank’s Sprint unit is reportedly poised to make a $32 billion offer to acquire T-Mobile that could take place early this summer. According to people familiar with the matter, the two telecoms have agreed on the broad outlines of a merger, but are still working on a formal contract. If completed and approved, the deal would combine the country’s third- and fourth-largest wireless operators, and potentially establish stronger competition for industry leaders Verizon and AT&T. Continue reading Sprint Edges Closer to a $32 Billion Deal for Rival T-Mobile

Amazon and Hit Entertainment have teamed up to offer a “content hub,” which will allow preschoolers to watch episodes of a new children’s television show, “Fireman Sam,” alongside ads for related merchandise, such as toys and apparel. “Fireman Sam” episodes will be available exclusively on Amazon, starting with the first 13 episodes released yesterday. The content hub raises questions about children’s advertising, which is usually subject to regulation when it appears on TV. Continue reading Amazon to Sell Kid’s Show and Merchandise via Content Hub

During Sunday’s episode of “Last Week Tonight” on HBO, John Oliver devoted more than 13 minutes, nearly half his show, to explaining the FCC’s proposed Net neutrality rules in a humorous yet detailed fashion. Toward the end of the commentary, he passionately called upon Internet commenters to direct their “indiscriminate rage” toward the FCC’s online feedback system. Viewers responded, and the next day the FCC tweeted that its site was experiencing technical difficulties due to the heavy traffic. Continue reading FCC Comments Site Slows After John Oliver’s Commentary

According to Netflix CFO David Wells, the streaming service plans on spending $3.2 billion on streaming content in 2014. Netflix acknowledged that a large fraction of the currently available material is not necessarily popular with its audience and plans to spend more money on shows with higher potential. A content shift through the next few quarters toward more original series along with licensing exclusive and higher-rated shows will account for this extra spending. Continue reading Netflix Turns to Original Series and Licensing 5-Star Content

The following is on the schedule for the Federal Communications Commission: whether to approve or block AT&T’s newly announced $49 billion acquisition of DirecTV, whether to allow Comcast’s proposed $45 billion purchase of Time Warner Cable, establish rules for next year’s auction of TV airwaves to wireless carriers, and determine whether and/or how to regulate the way broadband providers treat traffic over networks (and possibly face a busier calendar if Sprint makes a bid for T-Mobile). Continue reading FCC Faces Busy Year of Acquisitions, Auctions and Regulation

AT&T has agreed to acquire DirecTV for $49 billion. The two companies’ boards approved the agreement yesterday. The deal, which comes just three months after Comcast’s $45 billion agreement to purchase Time Warner Cable, will create a new pay TV giant as video consumption continues to move online. Combining AT&T and DirecTV would result in a company with 26 million pay TV subscribers in the U.S., second only to Comcast and Time Warner Cable if regulators approve their deal. Continue reading Pay TV: AT&T Agrees to Purchase DirecTV in $49 Billion Deal

The Federal Communications Commission voted 3-2 yesterday in favor of moving forward with proposed rules that would allow broadband providers to charge individual companies extra for preferential handling of online traffic. The ongoing debate has divided tech companies regarding the best path to keeping the Internet open. FCC Chairman Tom Wheeler’s proposal would ban providers from blocking or slowing sites, but leaves open the possibility of deals for access to so-called “fast lanes.” Continue reading Net Neutrality: FCC Votes in Favor of Advancing Web Proposal

More than 100 Internet companies and two FCC commissioners are voicing their concerns over FCC Chairman Tom Wheeler’s proposal to regulate broadband providers. Wheeler’s plan would allow broadband companies to charge fees to content providers that want to access the fastest lanes, a proposal that does not treat all Internet traffic equally. Amazon, Facebook, Google and Yahoo are among the companies that described the proposal as “a grave threat to the Internet” in a letter to Wheeler. Continue reading Internet Giants Dispute Proposed FCC Rules on Net Neutrality

Sprint is reportedly meeting with five different banks, including JP Morgan, Goldman Sachs and Deutsche Bank, to expedite its bid for rival T-Mobile. Insiders say that Sprint, which is owned by Japan’s SoftBank, hopes to finance much of T-Mobile’s estimated $50 billion price with corporate bonds. The remaining amount would likely be covered by syndicated loans and convertible bonds. Sprint, which is also working to ease regulatory concerns regarding the deal, is expected to make a formal offer by June or July. Continue reading Sprint in Talks with Banks to Fund Acquisition of T-Mobile

In a blog post yesterday, FCC Chairman and former telecom lobbyist Tom Wheeler wrote that he is “a strong believer in the importance of an Open Internet.” In response to what Wheeler views as “misinformed” commentaries regarding the Open Internet Notice of Proposed Rulemaking (NPRM) currently before the FCC, he offers two points of clarification: 1) This is not a final decision, but a formal request for input on the proposal, and 2) “all options for protecting and promoting an Open Internet are on the table.” Continue reading FCC Chairman Explains Next Steps to Protect an Open Internet

Netflix has reached a deal for direct access to Verizon’s network that should provide subscribers with better performance of streaming video in the coming months. Despite Netflix CEO Reed Hastings’ public complaints about paying extra for such connectivity, Verizon confirmed the new deal, which follows a similar approach to the agreement Netflix reached with Comcast earlier this year. As more Internet users stream movies and TV content, the debate over who should be responsible for infrastructure upgrades intensifies. Continue reading Netflix Reaches New Deal with Verizon to Improve Streaming

The Federal Communications Commission has proposed to allow broadband providers to charge fees for high-speed Internet for faster delivery of video and other data, essentially allowing a premium Internet fast-lane for companies that can pay. Small content providers may not be able to compete because they do not have the resources to pay for high delivery speeds. The regulations would also prohibit broadband companies from blocking or slowing down individual websites. Continue reading Will Proposed FCC Regulations Create a Two-Speed Internet?

Late this summer, Dish Network hopes to begin offering a low-cost Internet TV service that would allow customers to solely stream live TV channels on tablets, smartphones and computers. The company is in talks with potential content partners and has already struck a deal with Disney to offer channels such as ABC, the Disney Channel and ESPN. Dish also partnered with startup Artemis on a separate project to develop a high-speed wireless data service that is 1,000 times faster than 4G. Continue reading Dish Network Plans Internet TV and Wireless Data Services