Facing opposition from regulators, Sprint has opted to bow out of its pursuit of T-Mobile. The deal would have valued T-Mobile at $32 billion and provided a stronger rival to Verizon and AT&T. Sprint, the country’s third largest wireless carrier, will now have to rebuild its declining subscriber base on its own, and is currently testing new price plans. The company also decided during a board meeting yesterday to replace CEO Dan Hesse with billionaire entrepreneur Marcelo Claure. Continue reading Sprint Ends Pursuit of T-Mobile, Plans to Replace Chief Exec

Senate Majority Leader and Nevada Democrat Harry Reid explained in a letter Monday that he would support “any Open Internet rules” passed by federal regulators. FCC Chairman Tom Wheeler proposed rules that would allow companies such as AT&T, Comcast and Verizon to charge more for faster Internet access. Meanwhile, opponents view such arrangements as a direct threat to net neutrality. Reid’s letter could help provide cover for the FCC in regulating Web services similar to a utility. Continue reading Senate Majority Leader Offers Support for Open Internet Rules

FCC Chairman Tom Wheeler issued a statement to remind Internet Service Providers that they must remain clear about anything that impacts a consumer’s broadband experience. Any ISP that defies the transparency order is subject to censure and fines from the FCC. Wheeler did not direct the message at any specific provider, but claimed that the FCC has recently received numerous complaints. The agency did not make any comments about ongoing investigations. Continue reading FCC Chair Reminds ISPs to Adhere to the Transparency Rule

Tech companies of all sizes are urging the Federal Communications Commission to enforce net neutrality by reclassifying the Internet as Title II. This reclassification would mean that Internet providers would have to abide by the same laws as public utilities and there would be no Internet “fast lanes.” Representatives from Kickstarter, Spotify, Vimeo and others met with the FCC to discuss the issue last week. Netflix also submitted a filing to the FCC about the proposed net neutrality laws. Continue reading Tech Companies Argue the Internet Should Be a Public Utility

YouTube recently started pointing at Internet service providers when it comes to problems with video playback. When a YouTube video experiences buffer or playback issues, a message that reads “Experiencing interruptions?” now appears under the video. Clicking “Find out why” takes users to a new Google page that lists video playback quality for ISPs of different countries. Last month, Netflix posted alerts blaming a crowded Verizon network when customers experienced grainy video. Continue reading YouTube Takes Cue from Netflix, Blames ISPs for Slow Video

As part of its inititaive to extend Internet access to countries not yet connected, Google has acquired Alpental Technologies, a small startup focusing on 5G cellular service. Alpental, which was founded by former Clearwire engineers, has developed a cheap, high-speed networking technology that runs on 60GHz spectrum band. The FCC said that this band of spectrum has been used to provide service for buildings a mile apart at speeds up to seven gigabits per second. Continue reading Global Wireless: Google Acquires Alpental in Pursuit of 5G

Netflix and other entertainment companies have started paying Internet providers for faster service, a concept that some believe will adversely affect competition. In order to discover whether the consumers are getting the speed and quality of service that has been promised, the FCC has opened an investigation. The agency begins this process just as it decides whether it actually holds jurisdiction over their businesses as no laws give the FCC the power to enforce Net neutrality. Continue reading FCC Investigates the Speed and Quality of Internet Service

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