Europe little help in U.S. probe of cellphone carriers' deals

 

Unlike Europe, not all cellphones can work with every carrier in the U.S. Credit: compujeramey via Flickr.

The U.S. Department of Justice is examining cellphone carriers' exclusive deals with handset makers, according to a report this morning by the Wall Street Journal. For those who don't have a online subscription to the Journal, you can get a summary here from Reuters.

The informal probe focuses on agreements such as Apple's exclusive multiyear deal to supply AT&T with iPhones in the U.S.

Consumers have complained that such deals restrict them to a single service provider and offer them little choice. These deals have also triggered complaints from smaller wireless carriers that don't have the wherewithal, such as guarantees to buy large volumes of devices, to strike an exclusive contract with handset manufacturers.

The Justice Department may be looking for guidance in European markets, where phones purchased there can work with any carrier, said Charles Golvin, a telecommunications analyst with Forrester Research. But that would be a mistake, he said. That's because the two markets function differently.

European regulators long ago established a single standard for all carriers, called GSM, so any cellphones purchased in Europe can work for any carrier. But the U.S. has competing standards, including GSM and CDMA. This matters because a GSM phone will not work on CDMA networks. Sprint and Verizon use CDMA, while AT&T and T-Mobile are on GSM.

"We ended up with an alphabet soup of technologies," Golvin said. "So the lessons learned in other markets don’t always apply here."

-- Alex Pham

Give the digital TV switch a better reception

About 400 TV stations are shutting off their analog broadcasts at midnight tonight as part of the nation's switch to all-digital signals. But the new era hasn't gotten off to a great start for some viewers.

As we noted in a story today, some people are getting fewer channels -- even though they did everything the government and broadcasters told them to do as part of the DTV transition. The problems generally stem from the different technological characteristics of digital signals versus analog.

Many people, including viewers of the major broadcast networks in Los Angeles, have nearly four more months to get ready because Congress allowed stations to delay the switch until June 12. One key to improving your reception during that time appears to be upgrading your antenna.

A few readers have pointed me toward the YouTube video, shown above, on how to make your own digital TV antenna using equipment that would make MacGyver proud: six wire clothes hangers, a piece of wood, a dozen washers and a variety of other household items. Assembly doesn't look too difficult -- about the same level of expertise as required ...

President Obama makes digital TV delay official

President Obama signed the digital TV delay into law. Credit: Getty Images.

President Obama made the digital TV delay official today, signing legislation to put off the switch until June 12, the White House said.

"Millions of Americans, including those in our most vulnerable communities, would have been left in the dark if the conversion had gone on as planned," Obama said in a written statement. "This solution is an important step forward as we work to get the nation ready for digital TV."

Not everyone will get the benefit of that extra time. Though the major TV stations in Los Angeles won't turn off their analog signals until the new deadline, the law allows stations to apply to go ahead on the original date -- at the end of the day next Tuesday -- or anytime between now and June 12.

Nearly 500 stations have applied to pull their analog plug on Tuesday, although the FCC may block some early transitions. The most likely places the FCC will step in are markets where most stations want to make the switch early and many residents are unprepared.

-- Jim Puzzanghera

FCC sets high bar for allowing TV markets to make early digital switch

The Federal Communications Commission today provided TV viewers and broadcasters some clarity about the nationwide switch to digital television, which Congress voted to delay until June 12.

Acting FCC Chairman Michael J. Copps. (Credit: Joshua Roberts / For The Times)

Acting FCC Chairman Michael J. Copps said today that the major broadcast networks -- ABC, CBS, Fox and NBC/Telemundo -- have vowed that their owned-and-operated stations would not turn off their analog signals until that date. Though many local affiliates are independently operated, the networks' pledge puts pressure on station owners to wait.

The legislation, which is awaiting President Obama's expected signature, allows stations to make the digital transition before June 12 with FCC approval.

At least one L.A.-area station, the News Corp.-owned KTTV Fox 11, will keep its analog signal going until June 12. We're still working to figure out the plans of other local broadcasters.

Copps said today that the FCC would set a high hurdle for approving early switches in markets where all stations want to make the transition before June 12. Though the agency may allow individual stations to switch early, commissioners worry that allowing all stations to turn off their analog signals early could leave unprepared viewers with no access to any TV. 

"We reserve the right to deny those requests if we find that it would not serve the public interest or if it would frustrate Congress' goal of giving consumers adequate time to prepare," he said.

The federal agency announced that stations would have to notify the FCC by Monday if they want to turn off their analog broadcast signals on the original date of Feb. 17.

Stations had prepared themselves for that date and face increased costs -- including thousands of dollars a month in electricity bills -- for continuing to transmit their analog signal along with the new digital one most already have been airing for months. So there are strong reasons ...

Federal official in L.A. to hear your digital TV concerns

FCC Commissioner Jonathan S. Adelstein. (Photo credit: Brendan Smialowski / Bloomberg News.)

Fresh off Wednesday's action by Congress to delay the switch to digital TV until June 12, a top Federal Communications Commission official will be in Los Angeles next week for three town hall meetings on the now even-more-complicated transition.

FCC commissioners have spent the past several months traveling around the country to large cities and markets where at least 15% of the households rely on antennas to watch TV.  Commissioner Jonathan S. Adelstein drew Los Angeles.

He will be answering questions Monday in three locations: at the West Covina Senior Center from 10 to 11:30 a.m.; the Mt. Moriah Baptist Church from 12:30 to 2 p.m.; and Cal State L.A. from 6 to 8 p.m. More details are available here (PDF).

President Obama is expected to sign the legislation delaying the transition, currently planned for Feb. 17, by nearly four months. Adelstein, a Democrat, has been critical of how the Bush administration handled the transition. He applauded the planned delay for giving the FCC and others more time to help viewers prepare.

-- Jim Puzzanghera

House votes to delay digital TV transition to June 12

Congress this afternoon granted a four-month reprieve to the millions of consumers who are at risk of losing access to TV signals during the switch from over-the-air television to digital broadcasting.

In a 264-158 vote, the House of Representatives approved a bill to push the transition to June 12 from Feb. 17. President Obama has promised to sign the legislation, which passed the Senate last week. The law will require TV stations to keep broadcasting their analog signals until June 12. Consumer advocates say that as many as 10 million viewers currently get their programming solely from over-the-air broadcasts and are unprepared for the digital transition.

"Consumers are confused about where to buy their converter box, about which box to buy, how to hook up their box, what to do if they lose a channel they once got and whether they need a new antenna," said Joel Kelsey, a policy analyst with Consumers Union. "Changing the date allows them more time to grapple with those questions."

But the delay also could make the confusing transition even more perplexing for some viewers.

TV stations are allowed to seek federal approval to turn off their analog signals before the new deadline. So instead of nearly all broadcasters making the switch on Feb. 17, stations now may ...

U.S. House delays digital TV delay, but stay tuned

Dire reports are out today declaring the death of attempts by the new government to delay next month's nationwide switch to digital TV. The House failed to pass a bill that would postpone the switch from Feb. 17 to June 12.

The Washington Post calls that "a setback for the Obama administration", as does the Associated Press, which says the bill was defeated.

But don't read too much into the move. Supporters of the delay still expect it to pass as soon as next week.

The measure, which the Senate approved Monday, needed a two-thirds majority to pass the House on an expedited basis. Strong Republican opposition prevented the fast-tracking. But normal rules require only a simple majority, and the bill received that and more. The House vote was 258-168 in favor of a delay.

Rep. Rick Boucher, the Virginia Democrat who chairs the House telecommunications subcommittee, told me he was optimistic the chamber would agree to President Obama's request and vote to put off the digital transition until June so about 6.5 million viewers won't lose their TV signals next month.

“The likelihood is we’ll come back next week” and pass it, he said.

A spokesman for House Speaker Nancy Pelosi, the San Francisco Democrat, said she was looking for a way to hold the vote soon.

-- Jim Puzzanghera

Photo credit: Valerie Everett via Flickr

Google pulls out of Yahoo advertising deal

Google pulled out of its controversial advertising agreement with Yahoo this morning because of fears of a "protracted legal battle" with federal and state antitrust regulators concerned about the deal's impact on the online market.

The decision ends a four-month quest to get regulatory approval and a broader attempt to keep Yahoo out of the hands of Google rival Microsoft. The software giant led the charge against the Web advertising deal, stirring up opposition among advertisers and raising worries within the Bush administration and Congress about the potential impact of a partnership between the top two search engines.

With the deal already delayed and then revised in hopes of overcoming strong concerns from the Justice Department, Google announced in a blog post this morning it was pulling the plug because those steps were not enough to ...

FCC votes to turn empty TV channels into wireless Net access

Wireless Internet access is about to undergo its largest ever expansion after federal regulators today approved a controversial plan to allow a new generation of mobile devices to use the empty airwaves between television channels for free Web surfing.

Dubbed "Wi-Fi on steroids" by its supporters in the high-tech industry, the plan promises to offer free wireless Internet service across America and spur new systems for transmitting video and other data seamlessly between devices in their homes. The plan overcame staunch opposition from the entertainment industry, which is worried about the signals interfering with TV broadcasts and wireless microphones.

Though expected to be slower and possibly less secure than commercial services from cable and phone companies, the new Internet connections would ride on the highest-quality airwaves, able to carry signals long distances and easily penetrate trees and walls.

For decades, those airwaves have been reserved for TV stations. But, hoping to increase high-speed Internet access, the Federal Communications Commission unanimously approved a plan advocated by public interest groups and technology companies, including Google and Microsoft, to allow the use of the airwaves by new laptops, mobile phones and other gadgets with built-in equipment that's being developed.

The high-tech companies say the white spaces have the potential to provide revolutionary new wireless services that people could use for free, unlike the spectrum leased by the government to cellphone companies, which charge customers to access it. Google Chief Executive Eric Schmidt and Microsoft co-founder Bill Gates personally ...

Music industry groups settle some online royalty disputes (but not the big one over Internet radio)

The different parts of the music industry are in harmony today, at least when it comes to some online royalties.

In an agreement hailed as a "breakthrough that will facilitate new ways to offer music to consumers online," groups representing songwriters, music publishers, record labels and digital music websites have ended a seven-year dispute over two types of music royalties.

Unfortunately, neither of those is the controversial performance royalty for Internet radio. That remains the subject of a high-stakes stalemate between SoundExchange, which collects the fees for artists and record companies, and Internet radio sites such as Pandora and Live365.

Today's agreement resolves some contentious issues that were the subject of a six-month trial earlier this year before the Copyright Royalty Board, a group of judges charged by Congress with tackling these disputes. The groups -- the Digital Media Assn., the National Music Publishers' Assn., the Recording Industry Assn. of America, the Nashville Songwriters Assn. International, and the Songwriters Guild of America -- have agreed on so-called "mechanical royalties" for interactive streaming music and limited music downloads.

It's all pretty complicated, but the groups said the deal should help lead to more cutting-edge music services.

"This agreement provides a flexible structure to support innovative business models in the digital music marketplace that will benefit music fans, creators and online services," Mitch Bainwol, chief executive of the RIAA, said in a joint news release the groups issued today. "The agreement demonstrates that our industries can work collaboratively to solve complex issues.”

And there's no doubt this is complex. So here's a quick glossary.

Let's start with the mechanical royalty. It is the fee paid to the songwriters, composers and publishers of the actual music (like the one pictured above) -- not the artists who perform it or the record companies that produce the recording.

Interactive streaming is different than most Internet radio. It involves listeners choosing which specific songs they stream. It's a model that has yet to fully develop, in part because of the royalty concerns.

Limited music downloads are ones with significant restrictions attached, such as the songs disappearing from your device if you don't continue paying a monthly fee. As an example, iTunes downloads are not considered limited because you can listen to them as often as you want (although there are some restrictions on how many computers you can load the songs on to). But Napster To Go, which allows you to listen to songs you transfer to a mobile device as long as you connect to the service once every 30 days, provides limited downloads.

When both those models began emerging in 2001, the music publishers and the RIAA cut a deal to allow them to operate without an agreed royalty rate. According to the agreement announced today, the rate now will be 10.5% of revenue as of Jan. 1, 2008, with a rate of 8.5% of revenue applied retroactively from Dec. 31, 2001, until the end of 2007. The groups agreed that any performance royalties those services pay would be deducted from the mechanical rate.

There still are some big mechanical royalty issues to be resolved by the Copyright Royalty Board, which must rule by Oct. 2. Among them: updating the 9.1 cents paid for each song on each physical CD sold; creating a rate for the first time for regular digital downloads, such as iTunes, which has been using the CD rate; and a rate for certain types of cellphone ringtones.

Everyone may not be so happy after that ruling. But for now, the different industry groups are singing the same happy tune.

-- Jim Puzzanghera

Sheet music photo by gl0ri via Flickr