Friday, October 1, 2010 9:19 PM

Subject: TR Daily, 1 October, 2010

Date: Friday, October 1, 2010 7:28 PM
From: TRDAILY <trdaily@tr.com>
To: David Honig <dhonig@crosslink.net>

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Telecommunications Reports presents....

TRDaily
October 1, 2010
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For a Web version of today's TRDaily, go to
http://www.tr.com/online/trd/2010/td100110/index.htm
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Table Of Contents

TELECOM REGULATION
MMTC Urges FCC To Wait For Congress On Broadband Issues
Public Interest Groups Urge EC To Adopt Open Internet Policies
Panelists Defend Managed Service Offerings
Broadband Adoption Hinges On Education, Innovation, Panel Says
Industry Eagerly Awaits Details Of NTIA Spectrum Reports
CTIA Warns FCC On ‘Bill Shock’ Rules
Panelists: IP Video Threatens Local Government Revenue
NTIA Shifts Broadband Grant Staff As Move To Oversight Begins
RUS To Help Rural Businesses Adopt Broadband
Bureau Delays, Limits Distribution Of ‘855' Numbers
T-Mobile, EZ Texting Settle Short Code Case
Separations Freeze, Pole Attachment Items Circulated At FCC
Court Hits ‘Cramming’ Firm With $38M Judgment
White House Adviser: 4G Could Fix Dated Public Safety Networks
Clyburn Concurs In MSS-BAS Item
FCC Grants Partial Waiver To Conexions
Nuclear Plants Seek Headset Authorization
FCC Cancels Five CPNI NALs
Weaknesses Seen In NOAA Satellite Program

LEGISLATION
Senate Passes Federal Employee Telework Bill
Langevin Bill Would Bolster Cybersecurity Authority
CU Praises ‘Bill Shock’ Measure

TELECOM BUSINESS
EarthLink Buying ITC DeltaCom In $516M Deal
AT&T To Pay $300M To IRS

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Neutral Tandem Completes Tinet Acquisition

CAPITAL MARKETS
Alaska Communications Plans Refinancing
Atlantic Tele-Network Boosts Credit Facility
Global Telecom Inks $15M Credit Line
Tonchidot Raises $12M Of Venture Funding

PERSONNEL
AT&T Appointment
Microsoft Mobile Chief
Yahoo EVP
Himax CFO
ABI Research Analyst
On4 Communications President

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TELECOM REGULATION
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MMTC URGES FCC TO WAIT FOR CONGRESS
ON BROADBAND ISSUES

The “Waxman formulation” on open Internet mandates to be enforced by the FCC case by case “shows
that a legislative solution is possible” and the FCC should “defer to Congress” rather than move ahead with
agency Chairman Julius Genachowski’s proposal for reclassifying broadband transmission services as
telecommunications services under Title II of the 1934 Communications Act, David Honig, president and
executive director of the Minority Media & Telecom Council, said today.

Speaking to reporters during a conference call this morning, Mr. Honig said that the proposal being
circulated by House Energy and Commerce Committee Chairman Henry A. Waxman (D., Calif.) before the
House adjourned until mid-November “clearly would have protected” the interests of multicultural
entrepreneurs and start-ups “and allowed for them to be mentored and incubated [by broadband Internet
service providers (ISPs)] under reasonable network management practices.”

Although Chairman Waxman has not as yet introduced a bill or even publicly released a draft bill, Mr.
Honig said that progress on negotiations “shows clearly a legislative solution is within our grasp” and that
“the tide is really in favor of getting this legislation which almost crossed the finish line across the finish
line.”

He also said the FCC should refocus its attention on the many issues from which it has been distracted by
the broadband legal framework and network neutrality debates, including implementation of the national
broadband plan (NBP), especially shifting universal service support to broadband services. While he
acknowledged that some have argued that without broadband reclassification or congressional action, the
FCC may not have the authority to act on many of the provisions of the NBP, his “own feeling is that the
Commission could [implement broadband universal service provisions] now regardless of how broadband
transmission is classified.”

He expressed concern that “incubation and mentoring of new entrants” would be “a very hard fit under the
common carrier model,” because those are activities “which a carrier by definition can’t do easily as a
common carrier.” He added that it is “clear from the phrasing of that provision in the Waxman bill that the

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kind of offerings that ISPs want to make in terms of incubation and mentoring would be allowed.”

Meanwhile, Julius Hollis, chairman of the Alliance for Digital Equality, also opposed broadband
reclassification, saying in a statement that it is “time to enforce policies that create jobs and spur
economic growth, and we must stay focused on this critical goal as we move forward” on the Waxman
proposal.

“By calling for reclassification, fringe groups are simply out of touch with what our communities really
need, and that’s jobs and investment,” Mr. Hollis said. “We cannot allow them to hijack this debate, nor
can we allow overregulation by the FCC to impede this goal. It is up to Congress to take the reins and
continue moving forward to enforce policies that focus on the creation of jobs and increased employment
through the deployment of affordable access.” - Lynn Stanton, lynn.stanton@wolterskluwer.com

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PUBLIC INTEREST, USER GROUPS URGE
EC TO IMPLEMENT OPEN INTERNET POLICIES

A number of public interest groups have urged the European Commission to move forward with specific
“open Internet” policies, arguing that a consistent regulatory framework governing broadband access for
all of Europe is necessary to protect consumers.

In comments filed with the EC yesterday on a consultation on open Internet and net neutrality issues, a
coalition of several public interest groups urged the commission to make a “clear commitment to the
protection of an Internet built on end-to-end architecture where access to services, applications, and
content, and how they interact with the network is decided by the end-users.”

The joint filing, which was submitted by the New America Foundation, Electronic Frontier Finland, Global
Partners & Associates, Hispalinux, Open Rights Group, and Open Spectrum Alliance, also urged the
commission to issue “clear guidance underpinning the protection of the open Internet . . . including what
constitutes reasonable traffic management to create a unified community-wide framework”

They also called for national regulatory agencies to implement tools for measurement, collection, and
analysis of network traffic and performance of fixed and mobile networks, adding that data to be collected
should be “independently verifiable and openly available to the public.”

Public Knowledge told the commission that the market for broadband access “easily” meets its three-
criteria test for markets that should be subject to ex ante regulation. First, “high and non-transitory
structural barriers prevent entry,” it said. “Not only is it usually uneconomic to overbuild an access
network, but rights of way and spectrum are scarce for physical, regulatory, and legal reasons.”

Second, the market does not tend toward competition in a “relevant time horizon,” Public Knowledge said.
And third, competition law “does not suffice to address the consequences of competition in the broadband
access market.”

Public Knowledge recommended that the EC adopted a modified version of the FCC’s open Internet
proposals, including barring broadband access providers from preventing any of its users from sending or
receiving lawful content, using lawful applications, and connecting lawful devices. It added that
broadband access providers should not be allowed to deprive users of competition and should treat
content, applications, and services in a “just and reasonable manner.” Finally, Public Knowledge said
providers should be required to disclose information on network management and other practices to

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