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Microsoft Attorney: Jerry Yang Said Google-Yahoo Merger Would Kill Competition

WASHINGTON, July 15 – Yahoo founder Jerry Yang said that if Yahoo and Google agreed to merge, competition in the search engine industry would cease, Microsoft general counsel Brad Smith testified before a Senate Judiciary subcommittee on Tuesday.

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By William G. Korver, Reporter, BroadbandCensus.com

WASHINGTON, July 15 – Yahoo founder Jerry Yang said that if Yahoo and Google agreed to merge, competition in the search engine industry would cease, Microsoft general counsel Brad Smith testified before a Senate Judiciary subcommittee on Tuesday.

Yang made the comments in a meeting with Microsoft executives on June 8, according to Smith, who attending the meeting.

Yang’s view was that if Google remained on one pole, and Yahoo and Microsoft were on another, competition in the industry would continue, according to Smith. But With Yahoo and Google aligned in a close business relationship, Smith said, the viability of Microsoft would diminish.

The result would be a “monopole,” said Smith.

Smith recounted the meeting to a rapt audience as one of the witnesses for the Senate Judiciary Committee’s Subcommittee on Antitrust, Competition Policy and Consumer Rights hearing on “The Google Yahoo Agreement and the Future of Internet Advertising.”

After being reminded that he was under oath, Smith, also a senior vice president at the Redmond, Wash., based software giant, adamantly reaffirmed his statement. He said that no single company should control 90 percent of a market owing to an agreement with its largest competitor.

Smith said that the government should block a June 12 agreement, between Google and Yahoo, in which Google and Yahoo announced a collaboration on a range of search technologies.

At first, Michael Callahan, general counsel of Yahoo, disagreed with Smith’s “characterizations” of Yang’s views. When pressed by senators on exactly what Yang said, Callahan said he could not recall what Yang said during the “long meeting.” Callahan was also present at the meeting with Yang and Smith.

Callahan did reiterate Yahoo’s commitment to remaining in the search market and remaining a Google rival.

Callahan said the advertising agreement did not force Yahoo to provide a certain number of Google ads on their web site and does not bar Yahoo from entering into deals with other companies.

Furthermore, Yahoo’s agreement with Google should be beneficial to publishers, consumers, and advertisers, as well as to both of the companies, Callahan said, since relevant content, audience size, and number of ads will increase as a result of the agreement.

Callahan’s view was supported by Google Chief Legal Officer David Drummond and Tim Carter, the CEO of web site Askthebuilder.com.

Drummond said that notwithstanding Google’s agreement with Yahoo, Yahoo remains independent.

Privacy advocates and others concerned about the lack of online competition have grown anxious over the prospect of 90 percent of online searches being in the hands of one company. The more data that is available to an individual search engine, the easier it would be to construct facts about a web searcher’s identity, these critics say.

Google now accounts for about 70 percent of searches; Yahoo accounts for 20 percent; with Microsoft at 10 percent, according to witnesses at the hearing.

Senate Judiciary Committee Chairman Patrick Leahy, D-Vt., said he was wary about the possibility of vast amounts of personal data being in the possession of one company. Furthermore, the prospect of increased advertising prices, decreased competition, and loss of jobs also must be taken into account under the Google-Yahoo agreement, Leahy said.

Matthew Crowley of Yellowpages.com also criticized the agreement, saying that it would increase advertising prices, decrease customer choice and discourage competition and innovation.

Pressed by Sen. Orrin Hatch, R-Utah, on whether the deal would give individuals incentive to bypass Yahoo and buy advertising directly from Google, Callahan said that companies should be aware that there is “no guarantee” that their ads will be on Yahoo as well as Google.

Smith also said that Microsoft’s failed attempts to purchase Yahoo would only put the combination at about 30 percent of all searches, or about three times smaller than the combined size (90 percent of the market) of a Google-Yahoo combination.

Drummond responded by declaring that Yahoo could proceed on one of two paths. On one path, Yahoo remains a player in the search engine market and generates more revenue as a result of its deal with Google. On the other path, Yahoo ends being “gobbled up by Microsoft.”

When asked whether Google would consider changing the language of their agreement if asked to do so, Drummond said yes. Callahan, of Yahoo, “echo[ed]” Drummond’s comments.

Articles and Agreement Referenced in this Article:

Health

FCC Proposes Notification Rules for 988 Suicide Hotline Lifeline Outages

The proposal would ensure providers give ‘timely and actionable information’ on 988 outages.

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Photo via Health and Human Services

WASHINGTON, January 26, 2023 – The Federal Communications Commission unanimously adopted a proposal to require operators of the 988 mental health crisis line to report outages, which would “hasten service restoration and enable officials to inform the public of alternate ways to contact the 988 Lifeline.”

The proposal would ensure providers give “timely and actionable information” on 988 outages that last at least 30 minutes to the Health and Human Services’s Substance Abuse and Mental Health Service Administration, the Department of Veteran Affairs, the 988 Lifeline administrator, and the FCC.

The commission is also asking for comment on whether cable, satellite, wireless, wireline and interconnected voice-over-internet protocol providers should also be subject to reporting and notification obligations for 988 outages.

Other questions from the commission include costs and benefits of the proposal and timelines for compliance, it said.

The proposal would align with similar outage protocols that potentially affect 911, the commission said.

The notice comes after a nationwide outage last month affected the three-digit line for hours. The line received over two million calls, texts, and chat messages since it was instituted six months ago, the FCC said.

The new line was established as part of the National Suicide Hotline Designation Act, signed into law in 2020.

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Health

FCC Eliminates Use of Urban-Rural Database for Healthcare Telecom Subsidies

The commission said the database that determined healthcare subsidies had cost ‘anomalies.’

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WASHINGTON, January 26, 2023 – The Federal Communications Commission adopted a measure Thursday to eliminate the use of a database that determined the differences in telecommunications service rates in urban and rural areas that was used to provide funding to health care facilities for connectivity.

The idea behind the database, which was adopted by the commission in 2019, was to figure out the cost difference between similar broadband services in urban and rural areas in a given state so the commission’s Telecom Program can subsidize the difference to ensure connectivity in those areas, especially as the need for telehealth technology grows.

But the commission has had to temporarily provide waivers to the rules due to inconsistencies with how the database calculated cost differences. The database included rural tiers that the commission said were “too broad and did not accurately represent the cost of serving dissimilar communities.”

FCC Chairwoman Jessica Rosenworcel gave an example at Thursday’s open meeting of the database calculating certain rural services being cheaper than in urban areas, when the denser latter areas are generally less expensive.

As such, the commission Thursday decided to revert the methods used to determine Telecom Program support to before the 2019 database order until it can determine a more sustainable method. The database rescission also applies to urban cost determinations.

“Because the Rates Database was deficient in its ability to set adequate rates, we find that restoration of the previous rural rate determination rules, which health care providers have continued to use to determine rural rates in recent funding years under the applicable Rates Database waivers, is the best available option pending further examination in the Second Further Notice, to ensure that healthcare providers have adequate, predictable support,” the commission said in the decision.

Healthcare providers are now permitted to reuse one of three rural rates calculations before the 2019 order: averaging the rates that the carrier charges to other non-health care provider commercial customers for the same or similar services in rural areas; average rates of another service provider for similar services over the same distance in the health care provider’s area; or a cost-based rate approved by the commission.

These calculations are effective for the funding year 2024, the commission said. “Reinstating these rules promotes administrative efficiency and protects the Fund while we consider long-term solutions,” the commission said.

The new rules are in response to petitions from a number of organizations, including Alaska Communications; the North Carolina Telehealth Network Association and Southern Ohio Health Care Network; trade association USTelecom; and the Schools, Health and Libraries Broadband Coalition.

“The FCC listened to many of our suggestions, and we are especially pleased that the Commission extended the use of existing rates for an additional year to provide applicants more certainty,” John Windhausen Jr., executive director of the SHLB Coalition, said in a statement.

Comment on automating rate calculation

The commission is launching a comment period to develop an automated process to calculate those rural rates by having the website of the Universal Service Administrative Company – which manages programs of the FCC – “auto-generate the rural rate after the health care and/or service provider selects sites that are in the same rural area” as the health care provider.

The commission is asking questions including whether this new system would alleviate administrative burdens, whether there are disadvantages to automating the rate, and whether there should be a challenge process outside of the normal appeals process.

The Telecom Program is part of the FCC’s Rural Health Care program that is intended to reduce the cost of telehealth broadband and telecom services to eligible healthcare providers.

Support for satellite services

The commission is also proposing that a cap on Telecom Program funding for satellite services be reinstated. In the 2019 order, a spending cap on satellite services was lifted because the commission determined that costs for satellite services were decreasing as there were on-the-ground services to be determined by the database.

But the FCC said costs for satellite services to health care service providers has progressively increased from 2020 to last year.

“This steady growth in demand for satellite services appears to demonstrate the need to reinstitute the satellite funding cap,” the commission said. “Without the constraints on support for satellite services imposed by the Rates Database, it appears that commitments for satellite services could increase to an unsustainable level.”

Soon-to-be health care providers funding eligibility

The FCC also responded to a SHLB request that future health care provider be eligible for Rural Health Care subsidies even though they aren’t established yet.

The commission is asking for comment on a proposal to amend the RHC program to conditionally approve “entities that are not yet but will become eligible health care providers in the near future to begin receiving” such program funding “shortly after they become eligible.”

Comments on the proposals are due 30 days after it is put in the Federal Register.

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Digital Inclusion

Broadband Breakfast Interview With Michael Baker’s Teraira Snerling and Samantha Garfinkel

Digital Equity provisions are central to state broadband offices’ plans to implement the bipartisan infrastructure law.

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Digital Equity provisions are central to state broadband offices’ plans to implement the Broadband Equity, Access and Deployment grant program under the bipartisan infrastructure law.

In this interview with Broadband Breakfast Editor and Publisher Drew Clark, Michael Baker International Broadband Planning Consultants Teraira Snerling and Samantha Garfinkel go into detail about the role of Digital Equity Act plans in state broadband programs.

Michael Baker International, a leading provider of engineering and consulting services, including geospatial, design, planning, architectural, environmental, construction and program management, has been solving the world’s most complex challenges for over 80 years.

Its legacy of expertise, experience, innovation and integrity is proving essential in helping numerous federal, state and local navigate their broadband programs with the goal of solving the Digital Divide.

The broadband team at Michael Baker is filling a need that has existed since the internet became publicly available. Essentially, Internet Service Providers have historically made expansions to new areas based on profitability, not actual need. And pricing has been determined by market competition without real concern for those who cannot afford service.

In the video interview, Snerling and Garfinkel discuss how, with Michael Baker’s help, the federal government is encourage more equitable internet expansion through specific programs under the Infrastructure Investment and Jobs Act.

The company guides clients to incorporate all considerations, not just profitability, into the project: Compliance with new policies, societal impact metrics and sustainability plans are baked into the Michael Baker consultant solution so that, over time, these projects will have a tremendous positive impact.

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