Mobile Diner® where wireless and washington meet….

The Wall Street Journal recognized the 10th anniversary of blogs and got some celebs to give their thoughts on blogging a few weeks ago. Folks like former Speaker of the House Newt Gingrich and actress Mia Farrow provided some insight on what they like to read. The article got me thinking about how companies can take it to the next level – beyond blogging – because we ain’t seen nothing yet.

The Blog Opportunity -

Companies are recognizing the power of new media and many PR firms are helping companies join the conversation online.  As diners know, blogging is a great way for folks within a company to communicate with their colleagues as well as with consumers.  However, the number of companies that are participating is still very small (8% of Fortune 500 companies). Not to mention in many instances companies are pitching and not really building relationships with the right folks in the blogosphere. The opportunity for companies to get involved could not better.  If a company wants to take it to the next level, they should fill a new position — community developer.

Community Developer -

The purpose of this job would be to gradually cultivate relationships online, tap social networks and build community. By listening first and learning about what his/her company can do better and putting a human face on a large company – the prospective returns could be huge. After all of the corporate scandals of the late 90’s and early 2000’s, it is imperative to have the trust and permission of the consumer or you get the heisman.

Companies will start to employ folks who have the skills to help position a company in what is an over-communicated world.  In fact, Seth Godin posted a bunch of opportunities and is looking for a community developer too!  A community developer is a wise choice and I believe the position will evolve into one of the most important positions a company can have.

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The Senate Commerce Committee held a hearing yesterday on consumer education for the DTV transition set to occur on February 17, 2009, which is the hard date set for analog TV signals to be turned off. On that day, analog TV’s that receive over-the-air signals only will go dark, and whether or not consumers are prepared with converter boxes or new TV’s depends solely on how well informed they are. Sen. McCaskill said it best: “No anger compares to the anger of Americans who can’t get their TV.” A little dramatic, but she has a point- Americans are not going to be happy if this transition does not go smoothly.

John Kneuer, of NTIA testitfied at the hearing and faced some tough grilling from Senators about the need for more consumer education. NTIA has $5 million to spend on consumer education. To put that in perspective, the UK is also currently transitioning to digital, and it is spending $400 million on education, while the city of Berlin spent $1 million to educate just 3 million people about its 2003 transition. Berlin’s transition went smoothly, and the U.K.’s looks to be headed that direction as well- 80% of consumers know about the transition and the analog cut-off date. In the U.S. on the other hand, only 10% of Americans are aware of both the transition itself and the cut-off date.

So whose responsibility is it to make sure that consumers are knowledgeable about the transition? According to Kneuer, its industry’s responsibility. He said during questioning that while $5 million is a limited amount, the vast majority of education will be done by companies that have a vested interest in a smooth transition, such as broadcasters and cable and satellite providers. Also, when questioned about the amount of traffic on the agency’s DTV consumer education site, he explained that currently, people go first to the NTIA site and then to other industry sites, but he hopes that the tables will turn so that company information sites are the first stop for consumers (which would probably behoove consumers- compare the DTV Transition Coalition site with that of NTIA).

Never-the-less, those with internet access are not likely to be the ones most affected by the transition. Nowadays, odds are, if you have an internet connection, you have a triple play package that gives you digital cable, or at least have analog cable. I, along with many of the Senators on the Commerce Committee, am concerned about the estimated 21 million homes that rely on over-the-air television for news, weather, sports, and entertainment. Many of these people are economically disadvantaged, elderly, or non-English speaking. NTIA, the FCC, and industry all have initiated efforts to reach out to these communities, but with only 10% of the population aware of the transition date and less than six months before coupons for converter boxes are to be distributed on January 1, 2008- it is unlikely that these often disenfranchised communities have been reached.

Although the agencies and industry are the ones finagling over the logistics of this responsibility, Congress is likely to bear the brunt of the blame if things go wrong when TV’s go dark in ‘09.  The Committee is right to be concerned, and it is probably in Congress’ best interest to oversee this transition to ensure that disenfranchised populations and everyone else are well informed of the transiton and their options. 

Dish Disclosure: Our firm represents Comcast on set-top-box issues.

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Chairman Martin and the rest of the Commissioners testified in front of a full house this morning in the House Commerce Committee.  As expected the topic du jour was the draft 700 MHz rules and I thought Chairman Martin’s logic behind those rules was sound – even though I disagree with the approach. 

Martin’s justification for the 22 MHz block (C-Block) to have open access conditions reverberates back to the policy discussions a few years ago on number portability.  In this instance, he is concerned about a consumer paying for new devices – like an iPhone – that they cannot take with them.  Not to mention a related concern with the early termination fee (“ETF”).  The justification for an ETF is that it is in place to subsidize the phone.  Many next generation devices will not be subsidized.  Accordingly, this spectrum will allow device portability as well as apply Carterfone principles to incent innovation in wireless broadband.

Chairman Martin did not feel it was necessary to adopt Carterfone principles on the rest of the 700 MHz band or legacy spectrum held by the industry.  Mr. Martin also does not believe that additional conditions - wholesale – are necessary.  With regard to wholesale, he believes that the condition can be a disincentive to investment by the organization that has the license.  Commissioner Adelstein and Commissioner Copps believe the wholesale provision would be a good thing.  They feel it might mitigate the impact these rules will have on rural wireless carriers - which has been a frequent topic at the diner.

One interesting exchange this morning was with Congressman Joe Barton (R-TX) and Chairman Martin.  As you may know, Martin has put a $4.6 billion reserve price on the C-block and a $10 billion price on the whole auction.  Barton asked Martin if he did that because he was concerned that putting conditions on the spectrum will lower interest in the spectrum.  Martin responded: “I was concerned that you were concerned.”  Martin went on to explain that he is comfortable with the CBO score for the auction ($12.5 billion). 

Chairman Martin has the necessary votes to approve these rules and get the auction started in a manner that meets the deadlines specified by Congress.  I disagree with the Chairman’s approach but appreciated the opportunity to hear him discuss his proposal this morning.  It will be interesting to see how all of this plays out over the next few years…

Dish Disclosure – Our firm represents CTIA and the Wireless Broadband Coalition on spectrum issues. 

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This week is going to be a busy one on Capitol Hill.  The FCC Commissioners are coming up for an oversight hearing in the House Commerce Committee tomorrow.  The Senate Commerce Committee is holding a DTV hearing  on Thursday and confirmation hearings begin for Jim Nussle to become OMB director.

With regard to 700, Google’s battle with AT&T about the rules has garnered everyone’s attention.  Bloggers, MSM (mainstream media) and policymakers have all been intrigued with the policy food fight.  The draft 700 MHz rules discussion has not only caused shockwaves in the wireless industry it has changed it.  Rural wireless carriers are the big losers and spectrum speculators are the big winners.  The big question is whether or not the future C-block licensee (22 MHz) will be able to deliver a viable alternative to the current wireless model. 

The winner of this beauty contest - if it is Google – may deliver for consumers.  Hopefully, their contribution would also spur wireless broadband in America too.  However, the continued use of auctions as a market-oriented way to allocate spectrum is over (by law not over until September 2011).  The FCC’s flexible rights model governing spectrum usage is cooked too.  We are returning to the old ”command and control” regime. 

Chairman Martin picked the winner of this pageant.  However, he didn’t need to.  Google could have bid on this block without the conditions.  They are only demanding more conditions (mandated wholesale and interconnection) to continue to diminish interest in this block.  A truly evil way to do business…

Dish Disclosure – Our firm represents CTIA and the Wireless Broadband Coalition on spectrum issues.

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On Tuesday, FCC Chairman Kevin Martin and the other Commissioners will testify at an oversight hearing in the House Commerce Committee. Grab some popcorn – it should be entertaining…

700 MHz will definitely be a hot topic on Tuesday. I expect other issues relevant to the wireless industry to take up some bandwidth too. For instance, special access and roaming as well as interest in private equity ownership of communications companies and mass media.

As I think about these policy matters, you can really see how dynamic and competitive the wireless market is today. All of the major carriers have different priorities and have different opinions on those issues. I am looking forward to the discussion next week.

Stay tuned for updates from Capitol Hill next week and for those that are not frequent diners – please consider subscribing via RSS or email.

It’s the only free lunch in DC!

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We have had a week to chew on Chairman Martin’s draft 700 MHz rules and I’m trying not to get sick.  Besides all the conditions on the upper 700 MHz spectrum and Reed Hundt’s complaining - I’ve decided to weigh in on the biggest loser of these draft rules — the rural wireless carriers.

A few reasons why there is no soup for them -

1. The upper 700 MHz band is slated for REAG licenses which are relatively large regional geograhic areas.  Rural carriers actively advocated that one of the bands should have been slated CMA or EA (smaller licenses).  The build-out requirements tied to those large blocks is tough for smaller carriers to swallow.
2. Presumably, the lower 700 MHz band becomes hot property with no conditions (open access etc.) attached to them and higher power limits granted at the April meeting.  Although the license sizes are smaller – “A” block on an EA basis (176 licenses)/ “B” block on a CMA basis (734 licenses) – the small carriers will get outbid by carriers with deeper pockets.
3. No spectrum to upgrade their technologies will leave them at a disadvantage to compete with the large carriers in a particular market.  This will only lead to further industry consolidation forcing smaller wireless companies to sell.

Some may say that the writing is on the wall at FCC.  On the horizon, is implementation of an interim cap which will prevent wireless carriers from receiving universal support funds to build in high-cost areas.  The combination of that decision (no funds) and a long shot to win spectrum in the lower band may leave some rural carriers with an appetite to exit the business.

Disclosure – I have not seen the draft 700 MHz rules and have pieced together what is in the rules from various press reports and information gathering.

Dish Disclosure – Our firm represents CTIA and the Wireless Broadband Coalition on spectrum issues.

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Congress returned to action last week and it has been fast and furious. With FCC Chairman Kevin Martin slated to visit the Commerce Committee on July 24, I don’t expect a slow down until Congress adjourns for August recess and the FCC finalizes rules for the 700 MHz auction.

As many already know, the Commerce Committee held a hearing last week on “Wireless Innovation and Consumer Protection.”  The purpose of the hearing was to take a look at the state of the industry and how the current regulatory environment was harnessing or hampering innovation.  I was looking forward to this hearing. The opportunity to discuss how industry is evolving both in terms of techology and responding to consumers is a good thing. Of course, all of the buzz was about the iPhone and many issues discussed at the hearing focused on the product. Depending on how you view the state of the wireless industry - the iPhone demonstrates the revolutionary new applications for a wireless phone on the horizon or a device which prevents consumers from the full potential of wireless broadband – it was a good or bad example. In any event, the Chairman’s leaking of draft 700 MHz rules sucked up most of the air on Wednesday. Continue Reading »

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There has been alot of talk recently about the convergence of social networks and professional networks. As both begin to meld into similar bodies with like functions that attract the same people, questions about to what degree they may overlap and eventually meld begin to arise.

Facebook started as an online yearbook for Ivy League college students, and has developed into one of the most expansive networks on the net, attracting high school students, college students, and professionals alike. LinkedIn similarly has a broad and mass appeal- linking both students and those new to the work force with established and experienced professionals. So to what degree do these networks overlap and serve similar purposes, and to what degree do they differ? Should they merge in order to provide more comprehensive and informative services? Or should they stay distinclty separate entities, even as they begin to serve the same audience?

Much of the answer to these questions lies in how social networking sites have already been used by school administrators and future employers- as a supplement to applications and resumes. Do what people post on social networking sites say more about them than what they put on their resumes? Undoubtedly. However, people portray themselves differently in person when with they are with their friends and when they are with their coworkers, and certainly do the same online. Obviously, people need to use discretion when publishing anything online, whether on a personal website, blog, or social network, as posted information can be easily accessed and in some cases used in disciplinary actions. But, criminal and explicit behavior aside, people want to be able to post and interact online in a personal and informal way that is different fron how they would act professionally.

Facebook’s privacy features may partially solve this problem were a merge to occur. Now, Facebook users can limit the information viewable to people that are not their friends or are not in their social networks. Facebook could also potentially develop seperate personal and professional profiles with restrictive viewing options. But if school administrators have already found their way around privacy protections, who is to say that future employers already in the network themselves really won’t be able to access more personal information?

The answer is this- Faceboook’s platform is usable and appealing, and has attracted millions of users in expanding demographics. But, as it begins to attract more diverse users, it should not forget its roots and the elements that made it so appealing to the 18-24 demographic to begin with.

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This past Spring at VON 2007 in San Jose, Chris and I had the opportunity to meet with some real innovators in the blogging community. One such person was Chris Brogan, who is a Community Developer for Network2.tv and Video on the Net, as well as the co-founder of PodCamp.

Chris is a real leader in building communities, and was nice enough to take some time at the conference to share with us some of his experiences with the wireless carriers and his insights on developing a conversation with consumers. With some much appreciated video blogging tips from Steve Garfield, we filmed our first interview and were excited to add video to the diner. Unfortunately, as Chris explained in a previous post, we had some camera compatibility issues and couldn’t upload as soon as we would have liked.

Fortunately, we’ve salvaged the video and are able to finally share it with the rest of the diner. Enjoy!

Update: If you have problems viewing the video in the player, you can also access it at http://www.blip.tv/file/292586/.

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(Andrea Person, Chris, Ashley) 

In the District of Communications, people frequently change jobs and are poached by other companies. This is not necessarily a bad thing. As we have seen in the dip, knowing when it is time to move on or stick is critical to success. The golden handcuff days over. Accordingly, retaining talent and keeping your folks from competitors is a tough job.  In other instances, some individuals choose to pursue more education with the opportunity to come back and contribute more to an industry. Andrea Person fits that description.

Andrea finished her last week at Capitol Solutions and it has been a privilege working with her the last two years. This fall she is headed to Indiana University’s School of Law. Indiana has an outstanding reputation in telecommunications law and I’m sure we will see her thoughts in future columns of the Federal Communications Law Journal.

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The buzz building up to the iPhone launch was unprecedented in the wireless industry.  It reached a climax on Friday night when the product was rolled out.  Besides the touch screen and revolutionary style – the iPhone will change the industry forever.  On that note, I wanted to wait a few days to make some comments because the impact will be incremental but significant.  I believe the benefits for the wireless carriers downstream will outweigh the costs.  However, change is hard and it will take time for some executives to see the opportunity.  The length of the exclusive deal (2 years) with AT&T is about all the time they have. Continue Reading »

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