A video industry shift toward over-the-top delivery could lead to unbundling of content and a decline in revenue for video providers, said Needham & Co. analyst Laura Martin at a Technology Policy Institute panel Friday. CBS's announced plan to offer OTT content (see 1410160058) will cause it to lose ad revenue and some of the money it receives as part of cable bundle, in exchange for the likely smaller amount of money customers will pay to watch its content online, Martin said. “It's a shitty trade.”

A video industry shift toward over-the-top delivery could lead to unbundling of content and a decline in revenue for video providers, said Needham & Co. analyst Laura Martin at a Technology Policy Institute panel Friday. CBS's announced plan to offer OTT content (see 1410160058) will cause it to lose ad revenue and some of the money it receives as part of cable bundle, in exchange for the likely smaller amount of money customers will pay to watch its content online, Martin said. “It's a shitty trade.”

Top telecom issues set for discussion at NARUC’s annual meeting this week in San Francisco include states’ authority under Communications Act Section 706, 911 reliability, the USF contribution base and municipal broadband, NARUC members said in interviews.

A video industry shift toward over-the-top delivery could lead to unbundling of content and a decline in revenue for video providers, said Needham & Co. analyst Laura Martin at a Technology Policy Institute panel Friday. CBS's announced plan to offer OTT content (see 1410160058) will cause it to lose ad revenue and some of the money it receives as part of cable bundle, in exchange for the likely smaller amount of money customers will pay to watch its content online, Martin said. “It's a shitty trade.”

Going into more detail about the issues he sees facing a Title II approach than he has said publicly, FCC Chairman Tom Wheeler told public interest advocates that the agency would have to grapple with its legal authority to impose net neutrality rules on wireless, given a section of the Communications Act that some say prohibits treating mobile as common carriers, said three people who attended the Nov. 10 meeting. Wheeler also raised questions about the impact reclassification would have on privacy, according to the attendees, as well as an issue commissioners Mike O'Rielly and Ajit Pai brought up Friday at a Free State Foundation panel discussion on net neutrality: Would broadband providers have to begin paying into the USF?

Going into more detail about the issues he sees facing a Title II approach than he has said publicly, FCC Chairman Tom Wheeler told public interest advocates that the agency would have to grapple with its legal authority to impose net neutrality rules on wireless, given a section of the Communications Act that some say prohibits treating mobile as common carriers, said three people who attended the Nov. 10 meeting. Wheeler also raised questions about the impact reclassification would have on privacy, according to the attendees, as well as an issue commissioners Mike O'Rielly and Ajit Pai brought up Friday at a Free State Foundation panel discussion on net neutrality: Would broadband providers have to begin paying into the USF?

The FCC, with Commissioner Mike O’Rielly approving and concurring only in part, denied the American Cable Association’s petition to review the cost model used to determine funding for Connect America Fund Phase II, an order released Wednesday said. The dispute was over the model used to come up with the amount price-cap carriers will be offered to serve locations in their service territory that are above a specified funding benchmark, but below an extremely high-cost benchmark, said the order adopted Nov. 5 and posted Wednesday in docket 10-90. The area also can't be served by a competing, unsubsidized provider to be eligible for funding, the order said. ACA had argued the 8.5 percent cost of money used in the model was too high because it assumed interest rates will increase. Though ACA believed the rates will remain low, the commission was not persuaded “ACA’s predictions regarding future interest rates are more valid than the Bureau’s well-reasoned predictive judgment,” the order said. The commission was also not persuaded that “using a slightly lower cost of money would have a material impact on achievement of the Commission’s universal service goals,” the order said. The Wireline Bureau didn't overstep its authority and its decisions were not “clearly in error,” O’Rielly said in a statement, but he believed a lower cost of money would “be a more accurate prediction of interest rates over five years.” O’Rielly also said he disagreed with “the assumption, implicit in the analysis" that the CAF should aim to support more locations even if they're lower cost. The program's purpose shouldn’t be to “maximize the number of locations that receive a subsidy,” he said, but to “focus support on locations that are truly high-cost and are in areas that are not served or are unlikely to be served by a competing provider.” ACA declined comment on Thursday.

The FCC, with Commissioner Mike O’Rielly approving and concurring only in part, denied the American Cable Association’s petition to review the cost model used to determine funding for Connect America Fund Phase II, an order released Wednesday said. The dispute was over the model used to come up with the amount price-cap carriers will be offered to serve locations in their service territory that are above a specified funding benchmark, but below an extremely high-cost benchmark, said the order adopted Nov. 5 and posted Wednesday in docket 10-90. The area also can't be served by a competing, unsubsidized provider to be eligible for funding, the order said. ACA had argued the 8.5 percent cost of money used in the model was too high because it assumed interest rates will increase. Though ACA believed the rates will remain low, the commission was not persuaded “ACA’s predictions regarding future interest rates are more valid than the Bureau’s well-reasoned predictive judgment,” the order said. The commission was also not persuaded that “using a slightly lower cost of money would have a material impact on achievement of the Commission’s universal service goals,” the order said. The Wireline Bureau didn't overstep its authority and its decisions were not “clearly in error,” O’Rielly said in a statement, but he believed a lower cost of money would “be a more accurate prediction of interest rates over five years.” O’Rielly also said he disagreed with “the assumption, implicit in the analysis" that the CAF should aim to support more locations even if they're lower cost. The program's purpose shouldn’t be to “maximize the number of locations that receive a subsidy,” he said, but to “focus support on locations that are truly high-cost and are in areas that are not served or are unlikely to be served by a competing provider.” ACA declined comment on Thursday.

Eighteen seats on 10 states’ public utilities commissions (PUCs) were up for election Tuesday. Industry observers said in recent interviews that the results of elections to the Montana Public Service Commission and Nebraska Public Service Commission are the ones that could have the most impact on telecom regulation. Two Montana PSC seats were up for a vote, and one Nebraska PSC seat was on the ballot.

Eighteen seats on 10 states’ public utilities commissions (PUCs) were up for election Tuesday. Industry observers said in recent interviews that the results of elections to the Montana Public Service Commission and Nebraska Public Service Commission are the ones that could have the most impact on telecom regulation. Two Montana PSC seats were up for a vote, and one Nebraska PSC seat was on the ballot.