AT&T buys Direct TV

[spuwho]

Like clockwork, ATT threatens to back out of their broadband promises as part of the Direct TV deal.

Since Obama is threatening to remove some of the neutrality loopholes that Verizon and ATT want to use to raise revenue.

Per PCMag.com

http://www.pcmag.com/article2/0,2817,2472059,00.asp

AT&T said this week that it will "pause" its gigabit Internet
rollout until it has a better idea of what the government will
do regarding net neutrality.
In April, AT&T committed to expanding its ultra-fast fiber
network to cover up to 100 cities nationwide, including 21
major metropolitan areas.
But on Monday, President Obama urged the Federal
Communications Commission to reclassify broadband as a
telecom service rather than an information service in its
upcoming net neutrality rules. The move would give the
FCC more power to regulate ISPs (like AT&T) and wireless
carriers.
Not surprisingly, the industry had a fit. But AT&T is
apparently doing more than complaining — it's pausing the
rollout of gigabit Internet.
We can't go out and just invest that kind of money,
deploying fiber to 100 cities other than these two million
[covered by the DirecTV deal], not knowing under what
rules that investment will be governed," AT&T Chief Randall
Stephenson said during an appearance at a Wells Fargo
conference, according to a transcript provided by AT&T.
"And so, we have to pause, and we have to just put a stop
on those kind of investments that we're doing today."
By reclassifying broadband — a move known in DC-speak
as Title II — "it becomes unclear even how those kind of
services would be regulated," Stephenson said. "And so, we
just think it's prudent to just pause. Let's pause; let's make
sure that we have line of sight and understanding as to
what this process looks like, where these rules can
conceivably land, what those rules would look like, and
then let's reevaluate. But we're in a pause moment right
now on those kind of investments."
AT&T U-verse with GigaPower is already available in
Austin and Dallas-Fort Worth, Texas. It also had plans to
expand to Cupertino , Nashville , Raleigh , and more.
AT&T declined to comment on specifics of the pause. But
Stephenson said "I hope we're not sitting here on pause for
an extended period of time until we have line of sight."
As for what that line of sight should include, Title II is the
wrong approach, Stephenson said. For 20 years now,
established rules have said that telecom and wireless is an
information service, not a telecom service, he argued.
"Twenty years, multiple administrations, multiple chairmen
and FCCs have supported that ruling, and then that has
been actually upheld by the Supreme Court of the United
States," he said. "So, if you want to go down this path and
allow the FCC to make this determination, that these are in
fact regulated services, there is a mechanism at the FCC to
do that."
But if they do it, Stephenson warned, the FCC will probably
get sued. "There is no doubt whatever happens here, either
way, is going to be litigated," he said.
The road to classifying broadband as an information
service made its way to the Supreme Court via the Brand X
case, so he probably has a point.
It's not a guarantee that the FCC will take the approach
suggested by Obama. As the president pointed out, "the
FCC is an independent agency, and ultimately this decision
is theirs alone."
According to The Washington Post , FCC Chairman Tom
Wheeler told industry officials that he was "moving in a
different direction" from the president's proposal.
"What you want is what everyone wants: an open Internet
that doesn't affect your business," Wheeler told reps from
major tech firms, according to the Post . "What I've got to
figure out is how to split the baby."
According to Stephenson, Wheeler has been "diligent" in
trying to craft rules on which all sides can agree. But the
president's proposal is "effective end-to-end regulation of
the Internet," and that's not something AT&T can support.
Wheeler said publicly this week that he would take the
president's proposal into consideration, but that whatever
happens, he was going to take his time, so don't expect a
resolution before year's end.
AT&T's pause, meanwhile, is perhaps Google's gain. Its
Google Fiber rollout continues, and it recently announced
plans for a business version of the service in Kansas City.

[mbwright]

Better service/coverage and lower pricing?  I don't believe it for a second.   "very, very good for
consumers.... Together, I' m confident we'll drive innovation."