WASHINGTON, November 10, 2009 – The United States and European Union antitrust regulatory bodies are at odds over whether Oracle Corporation should be allowed to go through with its proposed acquisition of Sun Microsystems.
While the U.S. has not found any issues with the proposed merger, the EU has been putting on the breaks. On Monday, the European Commission issued a statement of objections concerning the acquisition of Sun by Oracle and the deal’s potentially negative effects on competition in the database products market.
“After conducting a careful investigation of the proposed transaction between Oracle and Sun, the Department’s Antitrust Division concluded that the merger is unlikely to be anticompetitive. This conclusion was based on the particular facts of the transaction and the Division’s prior investigations in the relevant industries,” Deputy Assistant Attorney General Molly Boast of the Department of Justice’s Antitrust Division said Monday, in a statement.
“The investigation included gathering statements from a variety of industry participants and a review of the parties’ internal business documents. At this point in its process, it appears that the European Commission holds a different view. We remain hopeful that the parties and the EC will reach a speedy resolution that benefits consumers in the Commission’s jurisdiction,” said Boast.
The U.S. Justice Department found many open-source and proprietary database competitors and noted that “consumer harm is unlikely because customers would continue to have choices from a variety of well established and widely accepted database products.” Justice also found a large community of developers and users of Sun’s open source database who could “support a derivative version of it.”
On April 20 the companies announced that Oracle was seeking to purchase Sun’s common stock for $9.50 per share in cash with the entire transaction valued at approximately $7.4 billion. At the time Sun wrote in a release that “The Board of Directors of Sun Microsystems has unanimously approved the transaction. It is anticipated to close this summer, subject to Sun stockholder approval, certain regulatory approvals and customary closing conditions.”
Oracle said Monday that its acquisition of Sun is “essential for competition in the high end server market, for revitalizing Sparc and Solaris and for strengthening the Java development platform.”
The company said the transaction does not threaten to reduce competition in any regard. Oracle further alleged that the EU Commission’s objections reflect a “profound misunderstanding of both database competition and open source dynamics.” The company said, “There is no basis in European law for objecting to a merger of two among eight firms selling differentiated products.”
“The two agencies certainly are working together, which is in everyone’s interest, but the cases where the two continents have diverged certainly seem to be piling up. Perhaps we need to look at the procedural fairness issues,” said Makan Delrahim, a former Deputy Assistant Attorney General for the Department of Justice Antitrust Division. “If we had some convergence on the process and the analytical mechanisms of reviewing mergers as well as general business conduct, then we can have some real discussions to see if we are on the same page on substantive antitrust law,” he said.
Delrahim added that “Tensions on this side of the Atlantic, after GE-Honeywell, Microsoft, Intel and now Oracle-Sun, certainly seem to be brewing. Perhaps we need to reconsider whether an international code of antitrust conduct would eventually make sense.”
American Antitrust Institute President Albert Foer said “It is unusual for either the U.S. or the EU to comment on one another’s cases while they are on-going. The antitrust agencies have worked hard to establish strong collegial relationships, but it looks like efforts to reach similar conclusions on the Oracle-Sun deal were not successful and for the moment, feathers are ruffled on both sides of the ocean. I hope that calm will prevail and that the agencies will agree to disagree.”
Dow Jones reported Tuesday afternoon that the EU Commission’s objections led to the stock of Sun Microsystems dropping near its lowest levels since the Oracle acquisition was announced.
Technology Policy Institute Introduces Data Index to Help Identify Connectivity-Deprived Areas
The Broadband Connectivity Index uses multiple datasets to try to get a better understanding of well- and under-connected areas in the U.S.
WASHINGTON, September 16, 2021 – The Technology Policy Institute introduced Thursday a broadband data index that it said could help policymakers study areas across the country with inadequate connectivity.
The TPI said the Broadband Connectivity Index uses multiple broadband datasets to compare overall connectivity “objectively and consistently across any geographic areas.” It said it will be adding it soon into its TPI Broadband Map.
The BCI uses a “machine learning principal components analysis” to take into account the share of households that can access fixed speeds the federal standard of 25 Megabits per second download and 3 Mbps upload and 100/25 – which is calculated based on the Federal Communications Commission’s Form 477 data with the American Community Survey – while also using download speed data from Ookla, Microsoft data for share of households with 25/3, and the share of households with a broadband subscription, which comes from the American Community Survey.
The BCI has a range of zero to 10, where zero is the worst connected and 10 is the best. It found that Falls Church, Virginia was the county with the highest score with the following characteristic: 99 percent of households have access to at least 100/25, 100 percent of households connect to Microsoft services at 25/3, the average fixed download speed is 243 Mbps in Ookla in the second quarter of this year, and 94 percent of households have a fixed internet connection.
Meanwhile, the worst-connected county is Echols County in Georgia. None of the population has access to a fixed connection of 25/3, which doesn’t include satellite connectivity, three percent connect to Microsoft’s servers at 25/3, the average download speed is 7 Mbps, and only 47 percent of households have an internet connection. It notes that service providers won $3.6 million out of the $9.2-billion Rural Digital Opportunity Fund to provide service in this county.
“Policymakers could use this index to identify areas that require a closer look. Perhaps any county below, say, the fifth percentile, for example, would be places to spend effort trying to understand,” the TPI said.
“We don’t claim that this index is the perfect indicator of connectivity, or even the best one we can create,” TPI added. “In some cases, it might magnify errors, particularly if multiple datasets include errors in the same area.
“We’re still fine-tuning it to reduce error to the extent possible and ensure the index truly captures useful information. Still, this preliminary exercise shows that it is possible to obtain new information on connectivity with existing datasets rather than relying only on future, extremely expensive data.”
New Report Recommends Broadening Universal Service Fund to Include Broadband Revenues
A Mattey Consulting report finds broadband revenues can help sustain the fund used to connect rural and low-income Americans.
WASHINGTON, September 14, 2021— Former deputy chief of the Federal Communications Commission Carol Mattey released a study on Tuesday recommending the agency reform the Universal Service Fund to incorporate a broad range of revenue sources, including from broadband.
According to the report by Mattey’s consulting firm Mattey Consulting LLC, revenues from “broadband internet access services that are increasingly used by Americans today should contribute to the USF programs that support the expansion of such services to all,” it said. “This will better reflect the value of broadband internet access service in today’s marketplace for both consumers and businesses.”
Mattey notes that sources of funding for the USF, which are primarily from voice revenues and supports expanding broadband to low-income Americans and remote regions, has been shrinking, thus putting the fund in jeopardy. The contribution percent reached a historic high at 33.4 percent in the second quarter this year, and decreased slightly after that, though Mattey suggested it could soar as high as 40 percent in the coming years.
“This situation is unsustainable and jeopardizes the universal broadband connectivity mission for our nation without immediate FCC reform,” Mattey states in her report, “To ensure the enduring value of the USF program and America’s connectivity goals, we must have a smart and substantive conversation about the program’s future.”
According to Mattey’s data, the assessed sources (primarily voice) of income will only continue to shrink over the coming years, while unassessed sources will continue to grow. Mattey’s report was conducted in conjunction with INCOMPAS, NTCA: The Rural Broadband Association, and the Schools, Health and Libraries Broadband Coalition.
“It is time for the FCC to take action, and to move away from the worst option of all – the status quo – that is jeopardizing the USF which is critical to connecting our nation,” the report said.
John Windhausen, executive director of SHLB, echoed the sentiments expressed by Mattey in her report, “We simply must put the USF funding mechanism on a more stable and sustainable path,” he said, “[in order to] strengthen our national commitment to broadband equity for all.”
Mattey report uniform with current recommendations
Mattey’s research is generally in line with proponents of change to the USF. Some have recommended that the fund draw from general broadband revenues, while others have said general taxation would provide a longer lasting solution. Even FCC Commissioner Brendan Carr suggested that Big Tech be forced to contribute to the system it benefits from, which the acting chairwoman Jessica Rosenworcel said is an “intriguing” idea.
The FCC instituted the USF in 1997 as a part of the Telecommunications Act of 1996. The fund was designed to encourage the development of telecom infrastructure across the U.S.—dispensing billions of dollars every year to advance the goal of universal connectivity. It does so through four programs: the Connect America Fund, Lifeline, the rural health care program, and E-Rate.
These constituent programs address specific areas related for broadband. For example, the E-Rate program is primarily concerned with ensuring that schools and libraries are sufficiently equipped with internet and technology assistance to serve their students and communities. All of these programs derive their funding from the USF.
Outreach ‘Most Valuable Thing’ for Emergency Broadband Benefit Program: Rosenworcel
FCC Acting Chairwoman Rosenworcel said EBB will benefit tremendously from local outreach efforts.
WASHINGTON, September 13, 2021 – The head of the Federal Communications Commission said Monday that a drawback of the legislation that ushered in the $3.2-billion Emergency Broadband Benefit program is that it did not include specific funding for outreach.
“There was no funding to help a lot of these non-profit and local organizations around the country get the word out [about the program],” Jessica Rosenworcel said during an event hosted by the Internet Innovation Alliance about the broadband affordability divide. “And I know that it would get the word out faster if we had that opportunity.”
The program, which launched in May and provides broadband subsidies of $50 and $75 to qualifying low-income households, has so-far seen an uptake of roughly 5.5 million households. The program was a product of the Consolidated Appropriations Act of 2021.
“We gotta get those trusted local actors speaking about it because me preaching has its limitations and reaching out to people who are trusted in their communities to get the word out – that is the single most valuable thing we can do,” Rosenworcel said.
She said the FCC has 32,000 partners and has held more than 300 events with members of Congress, tribal leaders, national and local organizations, and educational institutions to that end.
“Anyone who’s interested, we’ll work with you,” she said.
EBB successes found in its mobile friendliness, language inclusion
Rosenworcel also preached the benefits of a mobile application-first approach with the program’s application that is making it accessible to large swaths of the population. “I think, frankly, every application for every program with the government should be mobile-first because we have populations, like the LatinX population, that over index on smartphone use for internet access.
“We gotta make is as easy as possible for people to do this,” she said.
She also noted that the program is has been translated into 13 languages, furthering its accessibility.
“We have work to do,” Rosenworcel added. “We’re not at 100 percent for anyone, and I don’t think we can stop until we get there.”
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- Amy Klobuchar Reiterates Need for Funding Agencies to Handle Big Tech
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