Last week Herb Kohl, D-Wis., chairman of the Senate's antitrust panel, wrote to regulators to voice concerns about the sale of spectrum from a group of cable companies to Verizon. Kohl's letter gave heart to critics hoping the Department of Justice and Federal Communications Commission will block the deal for competitive reasons, but the investment firm Stifel Nicolaus took it as a sign the deal will be approved, likely with some conditions attached. Stifel analysts Christopher King and David Kaut argued Kohl's failure to take a strong stance against the merger should give regulators cover to bless it, particularly after his early opposition to the AT&T/T-Mobile USA merger.
Critics contend the deal and related cross-promotional agreements between the two sides would reduce competition in the markets for both wireless and wireline broadband by allowing Verizon to hoard spectrum, while removing the company's FiOS offering as a competitor for the cable companies. The analysts believe the letter indicates increased odds the DOJ could take exception to the marketing agreements in markets where Verizon has deployed FiOS or received approval to do so. The analysts believe the the lack of a strong case may compel the government to seek conditions to mitigate any potential harms, such as barring AT&T from purchasing the 700 MHz A- and B-block spectrum Verizon has agreed to relinquish if the deal is approved. If it isn't, the company said it would reassess its options.
Senate Panel Approves Surveillance Law: CQ Weekly's Emily Holden and Tim Starks report the Senate Intelligence Committee recently approved a bill that would extend a program that allows warrantless electronic surveillance of foreigners through 2017. The two votes against the draft measure came from Democrats Ron Wyden of Oregon and Mark Udall of Colorado. Despite opposition from liberals and civil liberties advocates, the Obama administration has argued the law is essential to preventing terrorist plots against the U.S. The Obama administration largely has continued in the same vein as the Bush administration on electronic surveillance, with law enforcement officials consistently pushing for greater authority to monitor individuals' electronic devices without first obtaining a warrant. Obama Oversees Drone Strikes: A feature this morning in the New York Times reveals President Obama has taken control of determining which terrorists are designated for death or capture by the U.S. military. According to the report, the president himself determines whether a drone strike against a suspect that is with his family is warranted. Drones, or unmanned aerial vehicles, have become a weapon of choice for the U.S. in both Yemen and Pakistan in recent months. The strikes also have raised serious ethical questions for those concerned about the deaths of civilians who happen to be in the combat zone. But Congress recently directed the FAA to open up domestic airspace to drones, and it doesn't appear the Pentagon will be scaling back their military use in the near future. Senators Reach Deal on Immigration Measures: CQ's David Harrison reports Senate Judiciary Chairman Patrick Leahy and ranking member Chuck Grassley have reached a deal to extend a visa program for foreign investors and extend a Department of Homeland Security system that verifies if new hires are eligible to work in the U.S. The EB-5 immigrant investor regional center program provides green cards to foreigners that invest at least $500,000 and create a minimum of 10 jobs in the U.S. within two years of arriving in the nation. E-Verify uses an online database to check whether an employee is legally allowed to work in the U.S. The system is currently mandatory for federal contractors, but Republicans are trying to make the program mandatory for all employers. Leahy, D-Vt., is a longtime advocate of the EB-5 visa program, while Grassley, R-Iowa, is a strong backer of E-Verify. Groups Target Prison Phone Rates: A coalition of groups spanning the political spectrum wrote to Federal Communications Commission chairman Julius Genachowski recently asking him to limit the rates prisoners pay for phone calls, according to a report from CQ's Shawn Zeller. Prisoners typically pay a $3.95 connection fee and a rate of $1 per minute, a cost borne by the friends and family whom they call. David Keene of the American Conservative Union called the rates "a tax directly on the poorest people in our society." Regulation Targets Online Dog Breeders: Shawn Zeller reports in CQ Weekly that protecting dogs appears to be one area of rare bipartisan agreement in today's toxic political climate. The Agriculture Department proposed a new rule earlier this month that would regulate online dog sellers in the same manner as their brick-and-mortar counterparts. The rule comes after Sens. Dick Durbin, D-Ill. and David Vitter, R-La., wrote to the USDA last year urging it to regulate online dog breeders. Under current rules, brick-and-mortar stores are exempted from inspections and licensing requirements on the theory that customers wouldn't tolerate inhumane treatment. The changes would allow online breeders to keep avoiding those same requirements, provided they open their doors to the public.Reports of backyard breeders that mistreat dogs and house them in inhumane conditions are common in recent years, as the Internet has made it possible to purchase a puppy from unknown origins with just a click. Most credible breeders will refuse to send a dog to a new owner site unseen, but that hasn't prevented a lucrative online market in some of the most desirable breeds from emerging. Veterinarians and the American Kennel Club instruct those interested in purchasing a dog to first verify that they are dealing with a responsible breeder, but doing so is again much harder online. Of course, for those worried about contributing to the problem, there's always another (vastly preferable) option: adopting a dog from your local humane shelter or rescue group.
Good Morning! If you missed a post and want to catch up, or are simply looking for more tech policy news, visit the Technology Executive Briefing blog and follow me on Twitter. Email me any tips or comments or call (202) 650-6659.