Captive Audience: The Telecom Industry and Monopoly Power in the New Gilded Age (57 page)

51.
Ken Florence, “Netflix Performance on Top ISP Networks.”
Netflix, Tech
(blog), January 27, 2011,
http://techblog.netflix.com/2011/01/netflix-performance-on-top-isp-networks.html
.

52.
“Comcast's CEO Discusses Q1 2012 Results—Earnings Call Transcript,”
Seeking Alpha
, May 2, 2012, available at
http://finance.yahoo.com/news/comcasts-ceo-discusses-q1-2012-163011159.html
(“High-Speed Internet revenue was a large contributor to Cable revenue growth in the first quarter [0f 2012]. HSI revenue increased 10.3%, reflecting rate adjustments, continued growth in our customer base and an increasing number of our customers taking higher-speed services. Today, 26% of our Residential HSI customers take a higher-speed tier above our primary service.”).

53.
Stacey Higginbotham, “FCC Opens the Door for Metered Broadband,”
GigaOM
, December 1, 2010,
http://gigaom.com/2010/12/01/fcc-opens-the-door-for-metered-web-access/
.

54.
Martin A. Brown, Alin Popescu and Earl Zmijewski,
Peering Wars: Lessons Learned from the Cogen-Telia De-peering
, Renesys Corporation, June 2008, 13, available at
http://www.renesys.com/tech/presentations/pdf/nanog43-peeringwars.pdf
.

55.
Bradley D. Bopp, NationalNet; Adam Davenport, Choopa, LLC; Randy Epstein, BroadbandONE; Anton Kapela, Five Nines Data, et al., to Hon. Julius Genachowski et al., Re:
Peering Representations by Comcast (NASDAQ: CMCSA); Comcast
and NBC Universal Merger
, MB Docket No. 10-56; Open Internet Broadband Industry Practices (GN Docket No. 09–191), December 20, 2010.

56.
TR Daily, “Comcast-Level 3 Dispute over Content Delivery Fees Cited in Net Neutrality, NBCU Venture Policy Debates,”
Telecommunications Reports International
, December 15, 2010; Earl Zmijewski, “A Baker's Dozen, 2011 Edition,”
Renesys
(blog), February 8, 2012,
http://www.renesys.com/blog/2012/02/a-bakers-dozen-2011-edition.shtml
.

57.
Evelyn M. Rusli, “Level 3's Bid for Global Crossing Could Lead to More Deals,”
New York Times
, April 11, 2011, available at
http://dealbook.nytimes.com/2011/04/11/in-level-3-takeover-an-opportunity-for-more-deals/
.

58.
Stacey Higginbotham, “Google's Fiber Network Could Foil ISPs and Fuel Innovation.”
GigaOM
, February 10, 2010,
http://gigaom.com/2010/02/10/google-fiber/
.

59.
Cathy Avgiris, “Extreme 105: Powering Digital Families,”
Comcast Voices
(blog), April 14, 2011,
http://blog.comcast.com/2011/04/extreme-105-powering-digital-families.html
; Dwight Silverman, “The Woodlands Gets Comcast's Extreme 105 First,”
Houston Chronicle, Tech
(blog), April 19, 2011,
http://blog.chron.com/techblog/2011/04/the-woodlands-gets-comcasts-extreme-105-first/
.

60.
Tim Beyers, “Give It Up, Comcast,”
Motley Fool
, April 15, 2011,
http://www.fool.com/investing/general/2011/04/15/give-it-up-comcast.aspx?source=isesitlnk0000001&mrr=1.00
.

61.
Avgiris, “Extreme 105” Susan P. Crawford, “The New Digital Divide,”
New York Times
, December 3, 2011, available at
http://www.nytimes.com/2011/12/04/opinion/sunday/internet-access-and-the-new-divide.html?pagewanted=all
.

62.
In the Matter of Inquiry Concerning the Deployment of Advanced Telecommunications Capability to All Americans in a Reasonable and Timely Fashion
, 26 F.C.C.R. 8008, 8009, 8099 (Seventh Broadband Progress Report and Order on Reconsideration).

63.
Federal Communications Commission, “FCC & ‘Connect to Compete’ Tackle Barriers to Broadband Adoption” news release, March 8, 2012, available at
http://hraunfoss.fcc.gov/edocs_/files/06/15/76/f061576/public/attachmatch/DOC-310924A1.pdf
.

64.
In the Matter of Inquiry Concerning the Deployment of Advanced Telecommunications Capability
, 26 F.C.C.R. 8008, 8042–43.

65.
Mark McDonald, “Home Internet May Get Even Faster in South Korea,”
New York Times
, February 21, 2011, available at
http://www.nytimes.com/2011/02/22/technology/22iht-broadband22.html
.

66.
Cecilia Kang, “FCC Chairman Supports Broadband Data Caps amid Netflix Protests,”
Washington Post, Post Tech
(blog), May 22, 2012,
http://www.washingtonpost.com/blogs/posttech/post/fcc-chairman-supports-broadband-data-caps-amid-netflix-protests/2012/05/22/gIQAfdN9hU_blog.html?wprss=rss_technology
.

67.
Representative Ed Markey, interview with the author, January 1, 2011.

Chapter 10. Comcast's Marathon

1.
“The Comcast/NBC Universal Merger: What Does the Future Hold for Competition and Consumers?”: Hearing Before the Subcomm. on Antitrust, Competition Policy and
Consumer Rights of the S. Comm. on the Judiciary
, 111th Cong. 12 (2010) (Opening Statement of Senator Herb Kohl).

2.
Applications and Public Interest Statement of Comcast Corporation, General Electric Company, and NBC Universal, Inc., In the Matter of Applications for Consent to the Transfer of Control of Licenses
, Federal Communications Commission, May 4, 2010, 134.

3.
Ibid., 39.

4.
Ibid., 46, 47; Common Sense Media, “Common Sense Media Honors Innovators in Media, Public Policy and Technology–PHOTO,” news release, February 26, 2010,
http://www.reuters.com/article/2010/02/26/idUS219181+26-Feb-2010+BW20100226
.

5.
“I want to thank my friends, Gary Knell and Jim Steyer,” Julius Genachowski, remarks presented at the National Museum of American History, Washington, D.C., March 12, 2010.

6.
“Commitment # 12. To enhance localism and strengthen educational and governmental access programming, Comcast will also develop a platform to host PEG content On Demand and On Demand Online within three years of closing” (
Applications and Public Interest Statement
). “Commitment # 16. The combined entity will continue the policy of journalistic independence with respect to the news programming organizations of all NBCU networks and stations, and will extend these policies to the potential influence of each of the owners. To ensure such independence, the combined entity will continue in effect the position and authority of the NBC News ombudsman to address any issues that may arise” (ibid.).

Copps, widely identified publicly as a Democrat, was a longtime outspoken critic of consolidation. See Joe Flint, “Michael Copps Frets over Media Landscape as He Prepares to Leave FCC,”
Los Angeles Times
, December 13, 2011, available at
http://articles.latimes.com/2011/dec/13/business/la-fi-ct-copps-20111213
. David Cohen of Comcast also publicly praised both Genachowski and Copps on CSPAN in August 2009. See “The Communicators: David Cohen, Comcast Corp.,” YouTube video, 1:10, from an interview televised by CSPAN, July 24, 2009, posted by “CSPAN,” August 2, 2009,
http://www.youtube.com/watch?v=sIozcgvdehs
.

7.
TR Daily, “Comcast Expects to Make FCC Public Interest Filing in 30–45 Days,”
Telecommunications Reports International
, December 4, 2009, available via Westlaw (
www.westlaw.com
) at 2009 WLNR 24519526.

8.
Commitment 1 addressed the continuing provision of free over-the-air television through owned and operated broadcast stations and local broadcast; commitment 16 addressed journalistic independence; commitment 6 promised expansion of “the availability of over-the-air programming to the Hispanic community utilizing a portion of the digital broadcast spectrum of Telemundo's O&Os (as well as offering it to Telemundo affiliates) to enhance the current programming of Telemundo and mun2” Comcast “represented that it will honor all of NBCU's collective bargaining agreements”
Applications and Public Interest Statement
, 40, 133, 48, 38 n. 69.

9.
Consumer Federation of America, Consumers Union and Free Press,
Comcast's Hollow “Public Interest” Commitments
, 2, accessed March 4, 2012,
http://www.freepress.net/node/76419
.

10.
Hill staffer, interview with the author, August 23, 2010. Cohen's compensation was valued at $9,839,379 in 2009, and $12,696,578 in 2010. See “David L. Cohen,”
Forbes
, accessed March 4, 2012,
http://people.forbes.com/profile/david-l-cohen/21325
; “David L. Cohen,”
Bloomberg Businessweek
, accessed March 4, 2012,
http://investing.businessweek.com/research/stocks/people/person.asp?personId=1997632&ticker=CMCSA:US
; Meg James, “NBCUniversal CEO Steve Burke Is Comcast's Most Highly Compensated Executive,”
Los Angeles Times
, April 2, 2011, available at
http://articles.latimes.com/2011/apr/02/business/la-fi-ct-burke-20110402
.

11.
Gail Shister, “Another Chair for a Man Who Just Can't Sit Still, For David Cohen, Penn a Passion Among Many,”
Philadelphia Inquirer
, December 5, 2008, available at
http://articles.philly.com/2008-12-05/news/25244395_1_penn-greater-philadelphia-chamber-law-school
.

12.
Robert Huber, “David L., Explained,”
Philadelphia Magazine
, November 2006, available at
http://www.phillymag.com/health/articles/david_l_cohen_profile_david_l_explained/page1
; Hill staffer, interview with the author, September 3, 2010.

13.
Huber, “David L., Explained.”

14.
Buzz Bissinger,
A Prayer for the City
(New York: Random House, 1999), xxiii.

15.
The Pennsylvania Report
18, Iss. 03-02 (Harrisburg: Capital Growth, 2003), 4.

16.
Thomas Fitzgerald, “Hoeffel, Castor Casting Shadows,”
Philadelphia Inquirer
, October 22, 2007, available at
http://articles.philly.com/2007-10-22/news/25232443_1_marcel-groen-democrat-joe-hoeffel-damsker
.

17.
Huber, “David L., Explained” Bissinger,
Prayer for the City.

18.
Peter Nicholas, “For Rendell, GOP Convention Work Is Done: As Mayor, He Lobbied Hard to Bring the Gathering Here. As Head of the DNC, He Will Be Keeping His Distance,”
Philadelphia Inquirer
, July 7, 2000, available at
http://articles.philly.com/2000-07-07/news/25609716_1_biggest-convention-ed-rendell-edward-g-rendell
.

19.
Patricia Horn, “Cashing in On the GOP Convention Comcast Branded the Gathering in Every Way It Could,”
Philadelphia Inquirer
, August 6, 2000, available at
http://articles.philly.com/2000-08-06/business/25594260_1_philadelphia-s-comcast-corp-comcast-executive-vice-president-comcast-country
.

20.
David Cohen's affiliations are detailed in his biography on the Comcast Web site: “Biography: David L. Cohen,” Comcast, accessed March 4, 2012,
http://www.comcast.com/corporate/about/pressroom/corporateoverview/corporateexecutives/davidcohen.html?SCRedirect=true
. PolitickerPA.com was shuttered in 2009, but the
Pittsburgh Tribune-Review
reported on PolitickerPA's ranking of David Cohen in “Manzo's Alleged Squeeze Is a Multitasker,”
Pittsburgh Tribune-Review
, July 20, 2008,
http://www.pittsburghlive.com/x/pittsburghtrib/s_578353.html
.

21.
Edmund Sanders, “Comcast Country Tough on Intruders,”
Los Angeles Times
, July 16, 2001, available at
http://articles.latimes.com/2001/jul/16/business/fi-22884
; Ken Dilanian and Wendy Tanaka, “RCN Pulls Cable TV Proposal: A Senior Company Official Blamed City Council Delays. Phila. Says the Company Left Because of Finances,”
Philadelphia Inquirer
, February 15, 2001,
http://articles.philly.com/2001-02-15/news/25316899_1_rcn-city-council-delays-cable-tv-proposal
; Patricia Horn and Ken Dilanian, “Where Connections Are Key to Connecting: RCN's Effort to Compete with Comcast Illustrates the City's Barriers to Business,”
Philadelphia Inquirer
, January 28, 2001, available at
http://articles.philly.com/2001-01-28/news/25311516_1_rcn-corp-telephone-and-internet-services-cable
. RCN discussed the episode in its 2002 filing with the FCC in opposition to Comcast Corporation's proposed acquisition of AT&T Comcast. See
Petition of RCN Telecom Services, Inc., to Deny Applications or Condition Consent, In the Matter of Applications for Consent to the Transfer of Control of Licenses
, Federal Communications Commission, April 29, 2002.

22.
“Cohen said the firm did not expect Rendell to do too much legal work during his first year on the job because he will be busy raising money for the Democratic Party and trying to help the Democrats hold onto the White House” (Cynthia Burton, “Rendell to Become Partner at Law Firm When He Leaves Office In January, He Will Join Ballard Spahr. He Has Strong Ties to the Firm,”
Philadelphia Inquirer
, December 23, 1999, available at
http://articles.philly.com/1999-12-23/news/25479149_1_ed-rendell-ballard-spahr-firm
.