The news is significant, but not shocking; the Verizon-cable deal has drawn plenty of opposition, particularly among competitors, liberals and advocacy groups dedicated to increasing choice for cable customers. Most consumers are already limited to one or two options for broadband service, with Verizon's FiOS offering one of the few options available besides the local cable provider. Verizon blunted some of the harshest criticism by agreeing to a spectrum swap with rival T-Mobile USA, which had previously been one of the leading critics of the transaction. That agreement appeared to mollify concerns that Verizon was hoarding spectrum because of the transaction.
But the confidential side agreements have always been one of the deal's most alarming elements to opponents. They claim the agreements, under which Verizon and the cable companies would cross-promote each other's products, would set up a communications cartel capable of controlling the marketplace and setting higher prices for both cable and broadband service. Verizon's recent announcements that it would stop expanding FiOS and stop offering standalone DSL service only exacerbated those concerns. While some expect the government to require that Verizon keeping offering those services as part of the deal, there is also the possibility that the DOJ will throw out the side agreements completely. Verizon and the cable companies have maintained that the marketing agreements are separate from the spectrum transaction. We will be tracking this closely moving forward.
Groups Pushing Congress for More STEM Visas: A coalition of tech companies, industry groups and regional chambers of commerce wrote to House members on Thursday urging them to pass legislation that would allow foreign graduates of U.S. universities in STEM (science, technology, engineering, and math) fields to stay in the U.S. after graduation. One potential option is a draft bill from House Judiciary chairman Lamar Smith, R-Texas, that would take 55,000 visas from the visa lottery program and re-allocate them to STEM graduates. Sen. John Cornyn, R-Texas, has introduce another bill (S 3185) that would have a similar effect. Both parties have traditionally expanding the pool of available foreign skilled workers, a top priority for tech companies that say they can't find enough qualified scientists and engineers. Generally the issue has been bogged down by the broader immigration debate, but the Obama administration's recent move to block the deportation of younger illegal aliens may have created a window of opportunity for expanding the number of skilled worker visas. Congress Considers Action on Leaks: Members of Congress began taking steps to crack down on national security leaks this week, after previously expressing outrage over the publication of details on classified cyberweapons and drone strike programs. House Judiciary Chairman Lamar Smith wrote to President Obama asking the administration to make seven senior officials available for interviews with his panel, including former White House Chief of Staff William Daley and national security adviser Thomas Donilon. Meanwhile, Sen. Ron Johnson, R-Wis., on Wednesday called on the Senate Homeland Security Committee to hold hearings on the leaks, arguing that Congress can't rely on the Justice Department to probe them. The leaks have generated considerable concern from members of both parties, though only Republicans have accused the White House of sanctioning them for political gain. U.S. Chases Piracy Charges Abroad: The U.S. government is attempting to extradite 24-year-old English college student Richard O'Dwyer for setting up a website that helps visitors find American TV shows and movies online. The case against O'Dwyer and his site, TVShack.net, is an example of how far this administration has gone to crack down on online piracy, often at the behest of the entertainment industry. That same zeal for IP enforcement lead to the creation of the Stop Online Piracy Act (SOPA), which was on the verge of becoming law earlier this year before massive online protests against potential censorship under the bill. But Hollywood and its partners are hard at work again, trying to persuade the government to take many of the steps outlined in SOPA using alternate methods. Expect Wikipedia founder Jimmy Wales and other tech activists to continue their stiff opposition as a counterbalance to Hollywood's still-considerable influence in Washington.