AT&T

On Nov 30, AT&T begins offering 3 video streaming services – DIRECTV NOW, FreeVIEW and Fullscreen. This is rules-free TV for anyone in the US who wants to stream shows and movies anytime, anywhere. For the more than 20 million US households who have dropped cable or are flirting with cutting the cord, we’re now delivering video over a technology platform that will have multiple product capabilities. And, if you’re an AT&T Mobility customer, DIRECTV will pick up the tab for data to help you achieve all your binge-worthy goals. Data Free TV means you won’t use your AT&T mobile data for watching DIRECTV NOW or FreeVIEW in the App. Fullscreen will also cover your data for streaming in the Fullscreen App on the AT&T mobile network.

We are notifying the Federal Communications Commission that we are “opting-in” to the forbearance granted in the Commission’s 2016 Lifeline Modernization Order. By opting in to forbearance today, AT&T will not offer a Lifeline discount on our broadband products at this time except where we deploy broadband as part of a high-cost funded public interest commitment. Again, opting in to forbearance will still allow us to offer Lifeline-supported broadband in the future, should we choose to do so. We will continue to assess our options as the current Lifeline program reforms are implemented and further updates are adopted.

[The AT&T/Time Warner] transaction will reshape the competitive landscape. Put simply, AT&T and Time Warner will innovate within the system, forcing other providers to compete with innovations of their own and creating demand for wireless connectivity that will give all wireless providers greater confidence to deploy 5G networks faster, deeper, and more robustly than they otherwise would. The result is a virtuous cycle of innovation and investment that expands consumer choice, incentivizes investment in the nation’s broadband infrastructure, and allows wireless companies like AT&T to bring needed competition to consumers looking for a wireless alternative to their cable broadband.

And we can accomplish all of this without harm to competition. As we begin the merger review process, we look forward to sharing these facts with our regulators. Vertical mergers like this one have long been recognized as being fundamentally pro-competitive, and for good reason. This transaction is about giving consumers more choices, not less. It is about expanding the distribution of Time Warner’s content, not restricting it. It is about stimulating the creation of more and better content, generating demand for next generation wireless services, and delivering consumers what they want. This only happens when the right combination of assets yields the right incentives to invest, innovate, and transform. The next revolution in video awaits.

AT&T and WOW simultaneously announced 1-gig deployments Oct 11, setting up Huntsville (AL) as the latest unlikely location for a pitched battle between competing cable and telecommunication gigabit-speed services. For AT&T, Huntsville is among three more metropolitan areas that will have the switch turned on for 1-gig services in October.

Other cities now served include Detroit and Columbus (OH). WOW announced in August that it was bringing its “Gigtopia” service to five market say the end of the year. Oct 11, it said deployments have been made in four of them Huntsville and Auburn (AL).; Knoxville (TN); and Evansville (IN). "In both Auburn and Huntsville, we are already offering the highest speeds available with our 600 Mbps Internet service,” said WOW System Manager Matt DeMuro, in a statement. “By enabling 1 Gig Internet over our existing Alabama coax plant, WOW customers will be able to access the fastest Internet service from WOW.”

The week of Oct 3, I am privileged to take over leadership of AT&T’s Federal Regulatory team in AT&T’s DC office. I take the reins from my mentor, boss and friend, Bob Quinn, as he rises to succeed Jim Cicconi, who leaves us for the next chapter of his life and a richly-deserved retirement.

This opportunity comes to me at an important inflection point for our company, our industry and our country. We are on the precipice of a Presidential election that will, in all events, herald change during a time when communications companies are increasingly scrutinized through the lens of a dated regulatory code that is more and more untethered from the realities of today’s modern networks. We have moved well beyond trying to fit a square regulatory peg into a round regulatory hole to fundamental questions about whether pegs and holes are an adequate regulatory framework at all. While I don’t know what issues will dominate the regulatory stage next year, I plan to proceed in my new role consistent with the high standards established by Jim and Bob – to engage in honest and fact-based debate, to listen in good faith to opposing viewpoints and to seek consensus wherever it can be found.

Sept 12, AT&T filed comments with the Office of Management and Budget on the Federal Communications Commission’s woefully deficient analysis of the burdens associated with the so-called enhanced transparency requirements adopted in the 2015 Open Internet Order (OIO). The Commission’s analysis evinces a complete disregard for its responsibilities under the Paperwork Reduction Act. The FCC has not specifically identified the things Internet service providers (ISPs) must do to comply with the new transparency requirements; it has not separately estimated the burden of each requirement; it has not explained the benefits that would justify these requirements; and its lowball estimate of the overall costs is absurd on its face. The FCC’s PRA analysis, which took the Commission more than a year to complete, does not pass the straight-face test. We hope OMB will reject it.

Over the past several months, the Federal Communications Commission – first through its hired economist, and later through Staff – has released over 100 regressions that purport to analyze the data the Commission has collected about the Business Data Services market. Each time, the FCC announced that the regressions show that incumbant local exchange carriers (ILECs) retain market power for legacy DS1 and DS3 services. Each time, economists, including those the FCC asked to conduct peer reviews of the FCC regressions, observed that the regressions suffer from significant flaws that render them unreliable, including the severe correlation/causation problem that economists refer to as “endogeneity,” incomplete and incorrect data on pricing and the number of competitors, mismatches in the pricing and competitor data, and incorrect methods for computing the statistical significance of the results. And each time, we noted that some of the most significant of these flaws are not fixable because of the limitations of the data available to the FCC’s economists.

Without reliable evidence of significant market power, there is simply no data-driven basis for new heavy-handed rate regulation of BDS services. Chairman Wheeler astutely declared soon after joining the FCC that “[i]ncentivizing competition is a job for governments at every level. We must build on and expand the creative thinking that has gone into facilitating advanced broadband builds around the country…Working together, we can implement policies at the federal, state, and local level that serve consumers by facilitating construction and encouraging competition in the broadband marketplace.” But, as the record in this proceeding makes clear, government rate regulation will not “facilitate advanced broadband builds around the country.” Instead, it will do exactly the opposite – discourage facilities-based entry by limiting the returns, particularly in rural areas, available to those willing to risk investing and punishing those that already have taken that risk.

Building reliable, ubiquitous high-speed broadband connectivity is tough. It takes an enormous commitment of capital and resources and a highly-skilled and capable work force. Yet AT&T has been at it for over 140 years. Between 2011 and 2015, while Google Fiber was cutting its teeth on fiber, AT&T invested over $140 billion in its network, building to over one million route miles of fiber globally and deploying ultra-high-speed fiber-fed GigaPower broadband services, reaching over a hundred cities. Along the way, AT&T spent over $13 billion with minority, women and disabled veteran-owned suppliers in 2015 alone. Google Fiber will no doubt continue its broadband experiments, while coming up with excuses for its shortcomings and learning curves.

Google Fiber still complains it’s too hard…and costs too much…and takes too long… even as it’s reported that Google Fiber will now try to do all this with half its current workforce. Meanwhile, without excuses or finger-pointing, and without presenting ultimatums to cities in exchange for service, AT&T continues to deploy fiber and to connect our customers to broadband services in communities across the country. Welcome to the broadband network business, Google Fiber. We’ll be watching your next move from our rear view mirror. Oh, and pardon our dust.

AT&T filed its response to a July 27 Notice of Apparent Liability (NAL) issued by the Federal Communications Commission for alleged violations of the lowest corresponding price (LCP) requirements of the E-rate program. These rules say that in order to participate in the E-rate program, a carrier must charge a participating school, library or consortium no higher than the lowest price that it charges to any similarly situated non-residential customer for similar services. To be clear, AT&T wholeheartedly supports the E-rate goals of providing schools and libraries with affordable broadband and telecommunications services. The FCC’s arguments, however, that AT&T applied the LCP rule incorrectly are factually wrong, they deviate from the FCC’s own rules and existing precedent, and they continue the FCC Enforcement Bureau’s troubling pattern of “rulemaking through enforcement.” The facts of the case aptly demonstrate that no actual FCC rules were violated.

The latest chapter of the Wi-Fi vs. LTE-U saga unfolded this month as the Wi-Fi Alliance (WFA) announced that, after many months, it was finally closing in on an approved LTE-U coexistence test plan but surprised everyone by suggesting that the test plan should also include LTE-LAA. To understand why this is so aggravating, we need to take a little trip in the not-so-way-back machine.

Let me be clear on one point – AT&T has no interest in undermining the vibrant Wi-Fi ecosystem that exists today. Well over 100 million devices connect to our network and the vast majority of those devices include a Wi-Fi client. But with LTE-LAA, the “mother-may-I” paradigm must be rejected so the wireless industry can move forward. Make no mistake, the rest of the world is not waiting for permission – Deutsche Telecom conducted the first LTE-LAA over-the-air trials last November in Germany. With LTE-LAA, the asserted objections to LTE-U have been fully addressed. Any pending or future application for equipment authorization for a LTE-LAA device that otherwise meets the Part 15 requirements should be granted in normal course. Any other result could do permanent damage to the incredibly successful Part 15 paradigm, result in the U.S. falling behind the world in the development of LTE unlicensed technologies and deny American consumers important advancements in mobile broadband.