Statement of NCTA President & CEO Michael Powell Regarding Today’s FCC Vote on Open Internet Notice of Proposed Rulemaking

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“The cable industry remains fully committed to giving American consumers the open Internet experience they expect and deserve. Maintaining an open Internet is not only the right thing to do, it’s vital to our ability to attract and keep our customers. Nevertheless, we stand ready to work constructively with the FCC and other stakeholders – as we did in 2010 – to develop a balanced approach that protects the open Internet while fostering continued investment and innovation in America’s broadband networks.

“But as we do so, we will continue to reiterate our unwavering opposition to any proposals that attempt to reclassify broadband services under the heavy-handed regulatory yoke of Title II. Treating broadband as a utility-like Title II service would reverse years of settled precedent, dry up investment in broadband deployment and network upgrades, and result in protracted litigation and marketplace uncertainty.

“The Internet is a feat of human ingenuity that has thrived under a light regulatory touch that has attracted more than $1.3 trillion of private investment since 1996. We urge the FCC to continue on a responsible path that will continue to fuel the private network investment that is essential to the continued growth and health of the Internet.”

NCTA: No Justification for Title II

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Says That Route Would Mean Lawsuits And Less Investment In Broadband
The National Cable & Telecommunications Association told the FCC Wednesday that while it could live with new net neutrality rules, it could not do so if they were tied to Title II classification of Internet access.

NCTA blogged as much earlier this week, but made it official with a filing to the FCC that did not bury the lead.

“[T]he existing transparency rules provide a strong foundation for promoting Open Internet principles, and, to the extent the Commission determines that additional safeguards are necessary, the Verizon decision provides ample leeway to adopt such measures pursuant to Section 706 of the Telecommunications Act,” NCTA wrote. “In light of that recently confirmed authority, it is wholly unnecessary to pursue a Title II reclassification theory. It also would be immensely destabilizing.”

For one thing, that is because Title II would land the new rules in court, NCTA made clear.

“At a minimum, pursuing Title II reclassification would plunge the broadband industry into a lengthy period of uncertainty while a new round of appellate proceedings ran its course—a process that can be easily avoided by relying on the roadmap provided by the Verizon court.”

NCTA has said it would be at the table to help draft supportable net neutrality rules, as it was the first time. In both instances, a main goal is to avoid the “nuclear option” of Title II.

But even if the FCC could reclassify broadband services, it would be unwise to do so, says NCTA. “The burdens and uncertainty associated with Title II regulation (or even the threat of such regulation) would deter broadband providers from making the substantial additional investments required [as much as $350 billion] to deploy new and upgraded broadband infrastructure.”

NCTA also echoed a growing refrain from Title II opponents: Reclassification would not prevent the paid priority “fast and slow lanes” that has become the flashpoint for net neutrality advocates. “Reclassification would not support a categorical prohibition on Internet “fast lanes” any more than Section 706 would. Section 202 of the Act does not impose a duty of “nondiscrimination,” but rather proscribes only “unjust” or “unreasonable” discrimination.”

NCTA President Michael Powell knows a little bit about the issues, having been on the commission when classification issues were being debated and decided back in the early 2000’s.

Charter Fires Up Digitalsmiths’ Recommendation Engine

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Digitalsmiths, the personalized video search and recommendations unit of TiVo, said Charter Communications has begun to deploy its platform on the MSO’s TV Everywhere mobile app, and plans to extend access to additional platforms in the months ahead.

Under the deal, Charter is rolling out Digitalsmiths’ Seamless Discovery platform to present personalized search and video recommendations on the Charter TV app for iOS and Android devcies, and will offer it on additional platforms and devices, presumably to include set-top boxes, “in the coming months.” Charter is testing a new cloud-based UI for set-tops in employee homes, and intends to offer it in customer homes in select markets by mid-year.

One aim of these new recommendation engines is to present viewers with relevant content on channels that they might not normally tune to. Last week, Nielsen said its latest Advertising & Audience Report found that the average U.S. TV home receives 189 channels, but that the average number of channels tuned per TV home in 2013 was 17.5 – a figure that has remained relatively constant over a six-year span.

Recent evidence shows that recommendations engines can boost that number. Cox Communications, which uses a personalized system from ThinkAnalytics on its Contour guide for set-tops and mobile devices, said it has seen the number of channels viewed per home rise from the 20 to 22 range, to 26 to 29, Steve Necessary, Cox’s vice president of product development, said in a recent interview.

“Charter continues to improve the overall entertainment experience for our customers with modern discovery features that provide relevant content recommendations,” said, Rich DiGeronimo, Charter’s senior vice president, product and strategy. “In addition to improving the customer experience, Digitalsmiths Seamless Discovery’s architecture easily integrates into Charter’s data aggregation systems to power the Charter TV App today, and additional cloud-based user interfaces in the near future,” Rich DiGeronimo, Charter’s SVP, product and strategy, said in a statement.

Ben Weinberger, co-founder of Digitalsmiths, said, “Gone are the days of consumers blindly channel surfing to find something to watch. We enable viewing personalization, where content is finding the consumer,” added Digitalsmiths co-founder Ben Weinberger.

TiVo, whose original deployment deal with Charter Communications has been in limbo, acquired Digitalsmiths earlier this year for $135 million. Digitalsmiths’ announced customers and partners include Time Warner Cable, Cisco Systems, Warner Bros., Paramount, Technicolor, Univision, Roku, Xbox, Sony PlayStation, Sharp, Turner Sports, the National Basketball Association, the PGA, NASCAR, zeebox, i.TV, and Australia’s Foxtel, among others.

Cable Show: Cox To Offer 1-Gig To All

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Los Angeles — Cox Communications has developed a broadband roadmap that calls for the cable operator to offer 1 Gbps speeds to all residential customers, and will kick off that plan in select markets in the coming weeks.

“This has always been part of our roadmap,” Cox CEO Pat Esser said Wednesday on Bloomberg Television’s In The Loop, noting that the MSO has been delivering speeds of 1 Gbps or more to business customers for years.

Cox didn’t say how and where it will target 1-Gig services during the first phase of that plan, but the aim is to start offering that capability in select areas later this year. Cox will announce more detail about the plan in the next two to three weeks.

Noting that privately held Cox is sometimes “too humble of a company,” Esser said the operator decided that “it’s time that we share our roadmap with our customers and our communities.”

The decision to go wide with 1-Gig capabilities “is a pioneering moment for us,” Esser said.

Cox’s 1-Gig plan also happens to come into view as both Google Fiber threatens to expand its 1-Gig network to more markets, and AT&T puts out similar warnings for its 1-Gig-capable, fiber-based “U-verse with GigaPower” offering.

Given that products based on DOCSIS 3.1, cable’s next-gen data platform for the HFC network that will target multi-Gigabit capabilities, aren’t expected to arrive until late next year, it’s anticipated that Cox will boot up 1-Gig residential services in select areas using fiber-based technology. Among recent action, Bright House Networks announced last month that it will use fiber-based EPON technology to deliver 1 Gbps residential services to a new housing development in the Tampa area.

In an interview here at The Cable Show, Kevin Hart, Cox’s executive vice president and chief technology officer, said the operator will be taking a “hybrid” approach to 1-Gig.

Although DOCSIS 3.1 is still out on the horizon, Hart said Cox is has begun to “accelerate operational readiness” for the next-gen platform, which will soon carry the consumer-facing brand of “Gigasphere.”

A significant piece of that is Cox’s coming all-digital transition that will see the MSO reclaim about 60 analog channels and give it room to carve out spots to insert DOCSIS 3.1 spectrum. Roughly 85% to 90% of Cox’s plant is already built out to 1GHz.

Hart said Cox has already picked out two, yet-unnamed suppliers for HD-capable Digital Transport Adapters (DTAs), which are simple one-way devices that several operators are using to facilitate their all-digital transitions. Cox plans to launch its first all-digital market trial in the fourth quarter, and then ramp up deployments in 2015 and 2016.

Once Cox has reclaimed its analog spectrum, is also looking to beef up its upstream by performing a mid-split, which involves a widening of the current upstream spectrum range from today’s 5 Megahertz to 42 MHz. Cox hasn’t announced a timeframe for that, but a mid-split is part of the company’s multiyear roadmap, Hart said.