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Feb 1 2008   3:46PM GMT

Microsoft’s Yahoo bid



Posted by: Tom Nolle
Regulations, Windows Computing, IP advertising

Microsoft has offered to buy Yahoo, a move that clearly indicates it believes Google to be a threat, and also that Google may be vulnerable. The move comes after a slower-than-expected quarterly growth rate from Google and a better-than-expected result from Yahoo (though the results didn’t help the stock). This action will clearly raise a lot of regulatory interest, but it is believed that regulators are already concerned about Google’s power in online search and advertising and might give the deal a nod. We think this is an indication that the web search and advertising market will be much more competitive in 2008 and that M&A by both parties is now more likely.

Oct 31 2007   8:31PM GMT

Telcos vs. Cable at FCC: Telcos Win the Day



Posted by: Tom Nolle
Cable, Telecom, Regulations

The FCC voted today on a number of matters that impact the competition between cable companies and telcos, and it appears that the telcos won the day. In one action, the FCC adopted a Second Report and Order that further clarifies the right of new market entrants to obtain fair process in franchising negotiations. The cable companies have been using their lobbying to stall franchise agreements for the telcos in many areas, and while this second step does not make it impossible to stall further, it does make it likely that tactics to delay franchising will invite FCC action and perhaps even further steps. Second, the FCC has ruled that agreements by owners of multi-tenant housing (apartments, etc.) cannot enter into exclusive deals with a single video provider. The MDU order was unanimous but the Second Report and Order on franchising split along party lines. The number of such splits has encouraged some commentators to suggest that if the administration changes with the next presidential election in the US (which seems likely at the moment) these issues could be reversed. We note that the FCC is essentially a court, with less latitude to reverse itself than a purely administrative body, and that in many cases the split vote reflects less an issue of fact than one of contribution balance. Congress, for example, changed hands and yet the stance of Congress on telecom has not changed since. The FCC also voted to require VoIP providers to support local number portability.


Oct 18 2007   1:11PM GMT

DSL services, Internet taxes - goverment action



Posted by: Tom Nolle
Regulations, DSL, Broadband

Regulators didn’t surprise anyone today with their news, but the did relieve some tensions. The Third Circuit Court of Appeals upheld the FCC’s classification of DSL as an information service, and the House voted to extend the ban on Internet taxes for four years. The former ruling was the most instructive because it upholds a relatively generous view of the extent to which the FCC can bend explicit legislative frameworks for competitive regulation to achieve a market goal–widespread and high-quality consumer broadband.