New FCC Chairman Calls for Expansion of High-Speed Internet

FCC chair Ajit Pai recommends Congress include expanded broadband Internet service in upcoming infrastructure legislation. “The one consistent message I hear is that there is a thirst for better, faster, cheaper Internet access… I think members of Congress get that as well,” he said. Pai’s broadband deployment agenda “is aimed at encouraging telecommunications firms to make high-speed Internet service more widely available in hard-to-serve areas,” reports The Wall Street Journal. “President Donald Trump has indicated he wants an infrastructure initiative worth as much as $1 trillion to improve the nation’s roads, bridges and other physical assets, which would require legislation and, potentially, a way to pay for it.” Continue reading New FCC Chairman Calls for Expansion of High-Speed Internet

FCC TV Airwaves Auction Reaps Disappointing $18.2 Billion

The Federal Communications Commission’s auction of TV airwaves, nearing its end, has brought in about $18.2 billion in bids. That figure is far less than the last sale of government licenses, due, say analysts, to a lack of interest in low-frequency television airwaves. The spectrum auction enabled TV stations to sell their airwaves, which would be repurposed for use by the mobile industry. But potential buyers are apparently more interested in airwaves that “can carry more data over short distances.” Continue reading FCC TV Airwaves Auction Reaps Disappointing $18.2 Billion

Departure of FCC’s Tom Wheeler Could Impact Net Neutrality

The FCC announced that Tom Wheeler will resign his chair position on January 20. The Obama appointee led the agency for the last three years. It is customary for the chairperson to resign when there is a new administration. Commissioner Jessica Rosenworcel’s nomination for another term was also impacted last week by the Senate’s decision not to vote prior to adjourning for the year. Rosenworcel is expected to step down by the end of December. President-elect Donald Trump will have two FCC seats to fill, one from each major party. Meanwhile, the departures leave the agency with two Republican commissioners and one Democratic commissioner. Continue reading Departure of FCC’s Tom Wheeler Could Impact Net Neutrality

AOL Layoffs Reflect New Emphasis on Mobile, Video and Data

AOL is planning to release 5 percent of its staff today, affecting about 500 employees. “CEO Tim Armstrong said that most of the cuts will come in its corporate units, while resources will be shifted more at mobile, video and data offerings going forward,” reports Recode. AOL, which was purchased last year by Verizon, recently added 1,500 employees from its ad deal with Microsoft and acquisition of Millennial Media. AOL’s current structure features its media unit (with properties such as Huffington Post and TechCrunch) and its platforms groups, which includes its advertising tech. “Armstrong said the layoffs are not related to current discussions AOL execs are having with Yahoo counterparts about integration between the two companies,” notes Recode. Continue reading AOL Layoffs Reflect New Emphasis on Mobile, Video and Data

CenturyLink to Take On AT&T with $34B Purchase of Level 3

CenturyLink has agreed to acquire Colorado-based, fiber-optic network provider Level 3 Communications “for about $34 billion in cash and stock,” reports Bloomberg, “creating a more formidable competitor to AT&T in the market to handle heavy Internet traffic for businesses.” The deal gives Louisiana-based CenturyLink $10 billion in tax credits. CenturyLink chief exec Glen Post will stay CEO of the merged company, and Level 3’s Sunit Patel will serve as CFO. Both companies have been struggling against bigger names in business services. “We see this as addressing the opportunities in the enterprise business,” said Level 3 CEO Jeff Storey. Continue reading CenturyLink to Take On AT&T with $34B Purchase of Level 3

In Landmark Ruling, FCC Protects Privacy of Consumer Data

The Federal Communications Commission, by a 3-to-2 vote, passed rules protecting consumers’ digital information, by preventing broadband companies such as AT&T and Comcast from collecting and distributing data including Web browsing, app use, location and financial information. Up until this ruling, users had to opt-out of broadband providers’ right to track such data. The ruling is considered a landmark since it is the first time the FCC issued privacy restrictions to high-speed Internet providers. Continue reading In Landmark Ruling, FCC Protects Privacy of Consumer Data

DirecTV Now: AT&T Streaming TV Service to Undercut Cable

Shortly after the Time Warner acquisition made headlines, AT&T announced that its streaming TV service, launching next month, will offer 100-plus channels for $35 per month. The company previously suggested that DirecTV Now would not undercut cable. “It’s clear what customers want. They want premium content in a mobile environment,” said AT&T CEO Randall Stephenson. “Our goal is to drive prices down.” The move can also be seen as a way to generate support for the Time Warner deal. “Regulators will heavily scrutinize the proposed merger of two such large and influential companies, but the pair are insistent that the deal benefits consumers,” reports Wired. “Certainly, Internet television benefits consumers.” Continue reading DirecTV Now: AT&T Streaming TV Service to Undercut Cable

SoftBank Signals Major Ambitions with $100 Billion Tech Fund

Japan’s SoftBank Group, led by chief exec Masayoshi Son, is partnering with a Saudi sovereign-wealth fund to establish a multibillion-dollar tech investment fund. SoftBank is an ambitious tech investor, as evidenced by its recent deals with China’s Alibaba Group, mobile carrier Sprint and chip designer ARM Holdings. Today, the company “plans to invest at least $25 billion over the next five years through a fund dubbed the SoftBank Vision Fund,” reports The Wall Street Journal. “Saudi Arabia’s Public Investment Fund may contribute an additional $45 billion over the next five years as the fund’s lead partner.” SoftBank is in talks with additional global investors, who could “push the new fund up to $100 billion to become the world’s ‘biggest investor’ in technology over the next decade.” Continue reading SoftBank Signals Major Ambitions with $100 Billion Tech Fund

Comcast Plans to Launch its Own Wireless Service Next Year

Comcast CEO Brian Roberts confirmed yesterday that the company plans to launch a wireless cell service by mid-2017. Speaking at a Goldman Sachs conference, Roberts said the company would leverage its 15 million Wi-Fi hotspots and use airwaves leased from Verizon to handle much of the traffic. “Comcast has a deal with Verizon dating back to 2011 that allows the cable company to sell wireless service using the telecom carrier’s network at set terms and pricing,” explains The Wall Street Journal. Since “Comcast is essentially renting Verizon’s network,” it will not need to invest in major infrastructure. Continue reading Comcast Plans to Launch its Own Wireless Service Next Year

Rocket Explosion is a Setback for Facebook’s Internet Program

A Falcon 9 rocket designed by Elon Musk’s SpaceX exploded during a prelaunch test at Cape Canaveral yesterday, destroying a satellite and its payload that was scheduled to launch into orbit on Saturday. The accident marks a setback for Facebook’s effort to bring Internet access to the world. The satellite was a joint venture between the social giant and France’s Eutelsat Communications, part of Facebook’s Internet.org initiative to help get unconnected people online and lower the cost of Internet access. This particular satellite would have reached more than a dozen countries in sub-Saharan Africa. Continue reading Rocket Explosion is a Setback for Facebook’s Internet Program

Appeals Court Sides with States vs. City Broadband Networks

In recent years, some cities have created broadband networks to provide Internet in communities — especially rural ones — where commercial services aren’t willing to set up shop. Those so-called “municipal broadband networks” just got slapped down by the U.S. Court of Appeals for the Sixth Circuit, which upheld laws in North Carolina and Tennessee halting their growth. For now, the ruling only impacts networks in those two states, but other cities that have created municipal networks have taken note. Continue reading Appeals Court Sides with States vs. City Broadband Networks

Cloud Services Spending to Reach $195 Billion in Four Years

International Data Corporation (IDC) projects that global revenue from public cloud services will surpass $195 billion by 2020, more than doubling this year’s forecast of $96.5 billion. The new figures, part of IDC’s Worldwide Semiannual Public Cloud Services Spending Guide, represent a compound annual growth rate of 20.4 percent over 2015-2020. Also, IDC expects that revenue from Infrastructure as a Service and Platform as a Service will increase at a faster rate than revenue from Software as a Service. Media, telecom and retail will experience the fastest revenue growth. Continue reading Cloud Services Spending to Reach $195 Billion in Four Years

Court Rules Against FCC Effort to Allow Municipal Broadband

The U.S. Court of Appeals for the Sixth Circuit, a federal appellate court, ruled that the Federal Communications Commission overstepped its authority in its effort to eliminate state laws preventing municipal broadband networks. The FCC wanted cities to be able to build their own broadband networks. Last year, Wilson, North Carolina and Chattanooga, Tennessee petitioned the FCC for permission to be able to build out their own networks, to increase competition in their municipalities despite state laws that prevent that. Continue reading Court Rules Against FCC Effort to Allow Municipal Broadband

SoftBank to Purchase UK-Based Chip Designer ARM Holdings

Japan’s SoftBank Group has agreed to acquire United Kingdom’s ARM Holdings for more than $32 billion in an all-cash deal, which insiders suggest marks a major move by the Japanese telecom toward the mobile Internet. As a top designer of chips for companies such as Apple and Samsung, ARM dominates the smartphone market and is a leader in the mobile revolution. Its designs appear in a range of devices, including Internet of Things sensors. The number of chips featuring ARM processors reached 14.8 billion in 2015, up from 6.1 billion five years earlier. Continue reading SoftBank to Purchase UK-Based Chip Designer ARM Holdings

Google, Asian Telecoms Build High-Speed Trans-Pacific Cable

Faster, the 5,600-mile undersea fiber-optic cable that was funded by Google and Asian telecoms, and installed by NEC, is now online. The new cable runs from Oregon to two points in Japan. According to Wired, “It’s the fastest, highest capacity trans-Pacific undersea cable ever built. It can theoretically deliver as much as 60 terabits per second of bandwidth — more than half the total bandwidth available between the U.S West Coast and Asia at the end of 2015.” Google plans to speed communications between its own data centers and offer cloud services from Tokyo. Facebook and Microsoft recently announced plans to construct a 160 terabit trans-Atlantic undersea cable from Virginia to Spain. Continue reading Google, Asian Telecoms Build High-Speed Trans-Pacific Cable