The Senate Commerce Committee will hold a hearing Tuesday morning on the future of online video, an issue that cuts across several tech policy debates and raises fundamental questions about the direction of telecom policy. CQ's Ambreen Ali reports that the controversial startup Aereo could be central topic of discussion, since main investor and IAC Chairman Barry Diller is among the witnesses scheduled to appear. Aereo launched last month in New York, where it uses tiny antennas to pick up broadcast signals and retransmit them to consumers' computers, tablets, and smartphones for a fee. The company has been sued by ABC, CBS, NBC, and other channels, who argue that Aereo, like cable companies that carry their networks, should be forced to pay retransmission fees.
The issue of retransmission is an old one, but the broader question of online video is one that Congress must address in the near future, or risk the old guard of broadcasters and cable providers shutting out newer, less expensive ways to distribute video content. While sites like Netflix, Hulu, and YouTube provide a range of both free and paid online video content, streaming video is also responsible for the surge in demand for bandwidth among wireless and broadband subscribers. As a result, wireless carriers have implemented data caps for consumers, which in turn drew criticism on Monday from several public interest groups. They argue the data caps are another way to discourage the distribution of online video, while wireless firms argue a shortage of available spectrum is the cause.
The proposed spectrum transaction between Verizon and the cable firms is another example of a cross-industry pairing that critics claim would damage competition; the fear is that approval of the deal and its confidential side agreements would result in Verizon ceasing to offer its FiOS product as competition for cable. In theory, fast, ubiquitous broadband access, either wired or wireless, would negate the need for cable and other pay-TV providers, as it would facilitate the distribution of video content online without having to subscribe to hundreds of channels. Broadcasters may actually feel less impact, thanks to the advantages of nationwide distribution and free, over-the-air delivery to consumers unable to afford their own Internet connections.
But in most markets the leading broadband provider is also the local cable company, giving those companies ample incentive to bundle their services in manners that discourage cable cord-cutting. Sen. Jim DeMint, R-S.C., has also introduced a bill to loosen retransmission requirements on cable providers (S 2008), including repealing the "must carry" provision that requires cable companies to carry broadcast signals.
Grassley Could Lift FCC Holds: Senate Judiciary ranking member Chuck Grassley, R-Iowa, told CQ's Niels Lesniewski Monday evening that he could lift the holds he placed on Federal Communications Commission nominees Ajit Pai and Jessica Rosenworcel as early as this week. Grassley has held up the confirmations after the FCC refused to hand over to him all documents related to its decision to issue LightSquared a conditional waiver for its planned nationwide wireless network.Grassley said he will lift the holds if he is satisfied the agency is making a good-faith attempt to turn over documents related to the approval process to the House Energy and Commerce Committee, which has oversight of the agency. Grassley said House E&C chairman Fred Upton, R-Mich., is supposed to be getting tens of thousands of pages of documents from the FCC, which should allow Grassley to begin his probe into the agency's actions on the issue. Republicans have accused the Obama administration of giving LightSquared preferential treatment.
Obama Targets Digital Abuses in Iran and Syria: President Obama issued an executive order on Monday targeting officials in Syria and Iran for using digital tools to track protestors and squash dissent. The Treasury Department said Syriatel, which controls 55 percent of the Syrian cell phone market, records conversations for the Syrian government and received orders to cut off networks in areas where attacks were planned. Treasury said the Iranian government has been open about its intention to monitor Internet traffic and suppress opposition online. The order imposes sanctions on intelligence agencies in both countries, along with Syriatel and the Iranian Internet service provider Datak Telecom. CISPA Draws More Fire Ahead of Floor Debate: CQ's Rob Margetta reports 18 House Democrats expressed concern about a controversial cybersecurity information sharing bill from the House Intelligence Committee (HR 3523), just days before it's scheduled for a vote on the house floor. The Cyber Intelligence Sharing and Protection Act, or CISPA, has drawn fire from privacy and civil liberties advocates in recent weeks, who claim it would place an excessive amount of citizens' data on the government's hands, with few limits on how it could be used. The letter (PDF) is signed byJoining the Democrats in criticizing CISPA on Monday was Texas Republican and presidential candidate Ron Paul, who blasted the bill as "the latest assault on Internet freedom." The administration also held a conference call on cybersecurity legislation, where senior officials declined to mention specific bills but emphasized that any legislation should have sufficient privacy and civil liberties protections built in. Those include policies on how the government can use information handed over by companies, oversight measures, and carefully tailored liability protections that don't enable collusion. Despite the fresh opposition, likely a result of the past week's protests from the bill's opponents, CISPA still appears likely to pass the House later this week.
Senate Reviews Anti-Kony Efforts: After unprecedented online scrutiny generated by a viral video on Ugandan warlord Joseph Kony, leader of the rebel outfit the Lord's Resistance Army, CQ's Chad Brand reports the Senate Foreign Relations Subcommittee on African Affairs will discuss efforts to combat the group on Tuesday. Chairman Chris Coons, D-Del., recently became a cosponsor of a bipartisan bill (S 2318) aimed at bringing war criminals to justice. The bill authorize the State Department to offer rewards for information leading to the arrest and conviction of individuals charged with war crimes, crimes against humanity, or genocide. Full committee chairman John Kerry, D-Mass., who introduced the legislation, made it clear in a statement that the measure specifically targets Kony. This post was updated at 8:21 a.m. on Wednesday, April 25