The FCC’s net neutrality order continued to spur lobbying activity more than a year after the agency adopted it. Q1 lobbying disclosure reports showed much evidence of net neutrality issues keeping industry lobbyists busy. Capitol Hill observers and lobbyists told us the pending U.S. Court of Appeals for the D.C. Circuit ruling on the industry net neutrality challenge, which could be released any week, has the potential to kick up intense lobbying throughout Q2 and perhaps beyond.

Facebook became the latest Internet edge heavyweight to join Incompas, the trade group said Thursday in a release. Other recent additions include Amazon, Google Fiber, Netflix, Rocket Fiber, TiVo, T-Mobile and Twitter.

Facebook became the latest Internet edge heavyweight to join Incompas, the trade group said Thursday in a release. Other recent additions include Amazon, Google Fiber, Netflix, Rocket Fiber, TiVo, T-Mobile and Twitter.

The ongoing strike against Verizon could affect Verizon’s bottom line, Chief Financial Officer Fran Shammo said Thursday on an analysts call as the carrier released Q1 results. Shammo said Verizon may have to update full-year guidance, depending on how the labor negotiations go in coming weeks. Nearly 40,000 Communications Workers of America and International Brotherhood of Electrical Workers members went on strike last week (see 1604130031).

The cable industry sought to head off possible FCC regulation of its business data services (BDS) that could be teed up under a draft Further NPRM. Cable regulation would fly in the face of Chairman Tom Wheeler's resistance to rate regulation of broadband providers in the net neutrality context, cable officials said. "Nothing in the record of this long-running proceeding remotely supports reversal" of four decades of "highly streamlined" treatment of facilities-based new entrants in a market, NCTA said Wednesday and Thursday, summarizing its meetings with senior FCC officials, including one attended by other cable players. It's doubtful cable "best efforts" services would be subjected to rate regulation in this proceeding, industry stakeholders told us Thursday, but some said other cable BDS offerings could be.

The ongoing strike against Verizon could affect Verizon’s bottom line, Chief Financial Officer Fran Shammo said Thursday on an analysts call as the carrier released Q1 results. Shammo said Verizon may have to update full-year guidance, depending on how the labor negotiations go in coming weeks. Nearly 40,000 Communications Workers of America and International Brotherhood of Electrical Workers members went on strike last week (see 1604130031).

The cable industry sought to head off possible FCC regulation of its business data services (BDS) that could be teed up under a draft Further NPRM. Cable regulation would fly in the face of Chairman Tom Wheeler's resistance to rate regulation of broadband providers in the net neutrality context, cable officials said. "Nothing in the record of this long-running proceeding remotely supports reversal" of four decades of "highly streamlined" treatment of facilities-based new entrants in a market, NCTA said Wednesday and Thursday, summarizing its meetings with senior FCC officials, including one attended by other cable players. It's doubtful cable "best efforts" services would be subjected to rate regulation in this proceeding, industry stakeholders told us Thursday, but some said other cable BDS offerings could be.

The Phoenix Center released a study Monday challenging conclusions in a recent Consumer Federation of America study that special access "overcharges" by major carriers have cost consumers more than $150 billion in macroeconomic losses since 2010 (see 1604050031). The center said the paper by CFA Research Director Mark Cooper draws heavily on a 2011 report by economist Stephen Siwek of consulting firm Economists Inc. “There are both significant conceptual and technical problems with the Siwek-Cooper Method,” said the paper by Phoenix Center economist George Ford. “The conceptual underpinning of the method is logically inconsistent and leads to ridiculous policy prescriptions. Also, making relatively minor but valid adjustments to Siwek['s] and Cooper’s assumptions turns an alleged multi-billion-dollar benefit from a special access price reduction into a multi-billion-dollar bust for the U.S. economy.” Cooper’s description of his calculation of the $150 billion in alleged benefits is “characteristically a muddled mess,” but Siwek’s analysis is more clear, Ford said. Among its flaws, Siwek and Cooper assume that elasticity is a constant -1.6 across the entire demand curve, he said. “This is an implausible assumption, well known to economists, but ensures that the computed quantity change for a large price reduction is enormous (thus, ensuring a large revenue increase),” Ford wrote. “If you expect your research to influence policies that could impact billions of dollars of investment, you should put in the effort to do the work properly,” Ford said in a news release. “CFA’s claim is based on a method that is internally inconsistent, economically unsound, and computationally flimsy.” Special access reform is before the FCC. Chairman Tom Wheeler recently circulated a Further NPRM and tariff order for a vote at the commission’s April 28 open meeting (see 1604110065). Cooper fired back. “There is no data in George’s paper, he never has any data, it’s just this vacuous theory,” he told us. Verizon and Incompas made a joint proposal at the FCC for revamping special access services (see 1604070069) because the telco now recognizes “that the jig is up,” he said. “The existence of market power and the use of market power are overwhelmingly clear. … The reality has finally caught up with the special access services of the local phone companies.” Cooper also said the price reduction data isn't based on Spiwak but on analysis by Susan Gately and “my own extensive analysis … over the past two decades.”

Incompas and Verizon officials lobbied four FCC commissioner offices on their recent proposal for revamping special access services (see 1604070069). Incompas CEO Chip Pickering and Verizon Senior Vice President Kathleen Grillo met Tuesday and Wednesday with Commissioners Mignon Clyburn, Mike O'Rielly, Ajit Pai, Jessica Rosenworcel and their advisers, said an Incompas-Verizon filing posted Thursday in docket 05-25. "We discussed the joint letter ... and the principles set forth in that letter which we urge the Commission to use as a guide for the FCC’s policy on dedicated services. We believe these principles reflect a balanced approach that incorporates the concerns of both sides of the policy debate," they said. Separately, Verizon Vice President Maggie McCready met with aides to O'Rielly, Pai and Rosenworcel to defend as "just and reasonable" the company's generally available special access tariff discount plans, including the requirement to purchase demand from a single plan. "In these plans, Verizon and the customer both realize the benefit of the bargain. Any requirements to change the plans should not result in one party realizing benefits beyond those included as part of the original agreement," she said in a filing. FCC Chairman Tom Wheeler has circulated a draft item tentatively scheduled for a vote April 28 that would bar "all or nothing" special access purchase provisions (see 1604110065).

Incompas and Verizon officials lobbied four FCC commissioner offices on their recent proposal for revamping special access services (see 1604070069). Incompas CEO Chip Pickering and Verizon Senior Vice President Kathleen Grillo met Tuesday and Wednesday with Commissioners Mignon Clyburn, Mike O'Rielly, Ajit Pai, Jessica Rosenworcel and their advisers, said an Incompas-Verizon filing posted Thursday in docket 05-25. "We discussed the joint letter ... and the principles set forth in that letter which we urge the Commission to use as a guide for the FCC’s policy on dedicated services. We believe these principles reflect a balanced approach that incorporates the concerns of both sides of the policy debate," they said. Separately, Verizon Vice President Maggie McCready met with aides to O'Rielly, Pai and Rosenworcel to defend as "just and reasonable" the company's generally available special access tariff discount plans, including the requirement to purchase demand from a single plan. "In these plans, Verizon and the customer both realize the benefit of the bargain. Any requirements to change the plans should not result in one party realizing benefits beyond those included as part of the original agreement," she said in a filing. FCC Chairman Tom Wheeler has circulated a draft item tentatively scheduled for a vote April 28 that would bar "all or nothing" special access purchase provisions (see 1604110065).