From the cable companies, you'll be seeing some quadruple play action, with them offering WiMax and 3G bundles with their services. For Intel's part, they'll be pushing WiMax in the Centrino 2 chipsets (as expected). And Google will be leading development of internet and advertising services, in addition to being Sprint's new default search on mobile phones. This whole thing is kind of amazing, actually : WiMax has gone from being a sure-fire also-ran to suddenly viable in a matter of weeks. Still a long road ahead, but they're in much better shape than it seemed even a week ago.

KIRKLAND, Wash. and OVERLAND PARK, Kan. - May 7, 2008 - Clearwire Corporation (NASDAQ: CLWR) and Sprint Nextel Corporation (NYSE: S) today announced that they have entered into a definitive agreement to combine their next-generation wireless broadband businesses to form a new wireless communications company.

The new company, which will be named Clearwire, will be focused on expediting the deployment of the first nationwide mobile WiMAX network to provide a true mobile broadband experience for consumers, small businesses, medium and large enterprises, public safety organizations and educational institutions. The new Clearwire expects to dramatically enhance the speed and manner in which customers access all that the Internet has to offer at home, in the office and on the road.

Sprint and Clearwire also announced today that five innovative technology, content and communications leaders
- Intel Corporation (NASDAQ: INTC) through Intel Capital, Google Inc. (NASDAQ: GOOG), Comcast Corporation (NASDAQ: CMSCA, CMCSK), Time Warner Cable Inc. (NYSE: TWC), and Bright House Networks - have collectively agreed to invest $3.2 billion into the new company. The investment by the five strategic investors will be based on a target price of $20.00 per share of Clearwire's common stock, subject to a post-closing adjustment. This adjustment is based upon the trading prices of new Clearwire common stock on the NASDAQ Market over 15 randomly selected trading days during the 30-trading day period ending on the 90th day after the closing date. The price per share will be based upon the volume weighted average price on such days and is subject to a cap of $23.00 per share and a floor of $17.00 per share. In addition, Trilogy Equity Partners, led by wireless veteran John Stanton, will invest directly in the new Clearwire's common stock.

Upon completion of the proposed transaction, Sprint will own the largest stake in the new company with approximately 51 percent equity ownership on a fully diluted basis assuming an investment price of $20.00 per share. The existing Clearwire shareholders will own approximately 27 percent and the new strategic investors, as a group, will be acquiring approximately 22 percent for their investment of $3.2 billion, both on a fully diluted basis assuming an investment price of $20.00 per share.

Sprint and Clearwire also announced a series of commercial agreements with the strategic investors, including 3G and 4G wholesale agreements.

"For Sprint shareholders, this is an opportunity to unlock and bring visibility to the value of our significant spectrum assets, technology and expertise, by leveraging the technology, applications and distribution strengths of our investors, who together command nearly a half- trillion dollars in market capitalization," said Dan Hesse, president and chief executive officer of Sprint. "We've made an excellent start developing XOHM WiMAX services. Contributing those advances to a strongly backed new company - in which we'll hold the largest interest - provides Sprint with additional financial flexibility and allows Sprint management to leverage and focus on our core business.

"Additionally, the agreements allowing the new company and our cable company investors to bundle and resell Sprint's third-generation wireless services strengthen the distribution of our current services while reducing the complexity and enhancing Sprint's cable relationships,"Hesse added.

Clearwire Chairman Craig O. McCaw, said, "The power of the mobile Internet, which offers speed and mobility, home and away, on any device or screen, will fundamentally transform the communications landscape in our country. We believe that the new Clearwire will operate one of the fastest and most capable broadband wireless networks ever conceived, giving us the opportunity to return the U.S. to a leadership position in the global wireless industry."

Benjamin G. Wolff, chief executive officer of Clearwire, said, "The combination of robust next-generation mobile WiMAX technology and nationwide spectrum that we believe is optimal for delivering mobile broadband services - coupled with substantial new financial resources, a team of experienced wireless industry veterans, and distribution and technology agreements with some of our nation's leading communications, technology and content companies - creates what I believe to be a once-in-a-lifetime opportunity.

"Given the complexity of this transaction, we have taken the time and effort to do it right, by thoughtfully leveraging the resources and opportunities that we and our investors are bringing to the table. This transaction is tremendous news for the entire Clearwire team - our shareholders, our customers and our employee-partners, and we look forward to partnering with the talented team from XOHM to achieve our shared vision," Wolff added.
The strategic investors are among the nation's leaders in communications technology, chipset development and Internet advertising, content and distribution. It is expected that the new Clearwire will have a time-to-market advantage over competitors in fourth-generation services, supported by strong spectrum holdings and a national footprint. Further, it will build on the strong foundation of Clearwire's rapidly growing subscriber base of nearly 400,000 wireless broadband customers as of year-end 2007, as well as Sprint's continued XOHM WiMAX network build-out in certain markets throughout this year.

"This agreement is a historic step forward for WiMAX as it represents the first nationwide deployment of a next-generation mobile broadband Internet in the U.S.," said Paul Otellini, Intel president and CEO. "The agreement also signifies growing industry support for WiMAX. Given its flexibility, coverage and speed, WiMAX will enable the mobile Internet and is already opening doors to a host of new and exciting applications, devices and business models around the world."

"Google is a firm believer in supporting new ways for people to access the Internet," said Eric Schmidt, chief executive officer and chairman of Google. "We are proud to invest in the new Clearwire alongside several leading technology and communications companies, and we believe that its planned WiMAX network will increase the ability for users to get high-speed broadband anytime, anywhere."

"This is a great coalition of innovative companies that have joined together to create the next generation of mobile wireless products. It is exciting to be on the ground floor of this new venture that we believe will create unprecedented high-speed wireless products and make them available across the nation," said Brian L. Roberts, chairman and chief executive officer of Comcast Corporation. "This transaction is attractive to us strategically and financially and puts in place very attractive wholesale relationships for access to Sprint's existing 3G and Clearwire's 4G networks, giving us complete flexibility to introduce wireless mobility in terms of product innovation and deployment."

"This exciting new venture enables Time Warner Cable to help shape the next generation of wireless services in ways that will complement and enhance our products and services," said Glenn Britt, Time Warner Cable's president and chief executive officer. "We're committed to giving our customers more control over how and where they can easily connect to what's important to them - entertainment, information, and each other. The agreements we're announcing today are a financially prudent way for us to add mobility to our offerings when our customers demand it."

"We are pleased to join our fellow cable operators as well as the new technology and wireless investors in this strategic venture. This broadband wireless relationship will help us to continue to provide the best possible competitive services for our customers, today and in the future. It is consistent with our commitment to delivering customers the products and services that they desire, whenever and wherever they want," said Robert J. Miron, chairman and chief executive officer of Bright House Networks.

The new Clearwire expects to offer mobile wireless Internet services on a broad array of new devices that will be made possible by integrated WiMAX chipsets, scalable operating expenses and a commitment to an open architecture.

Mobile WiMAX is a standards-based wireless broadband technology designed to operate multiple times faster than today's 3G wireless networks. With embedded WiMAX chipsets in laptops, phones, PDAs, mobile Internet devices and consumer electronic equipment, mobile WiMAX technology is expected to allow users to wirelessly access a range of multimedia applications, such as live videoconferencing, recorded video, games, large data files and more - anywhere in the network coverage area.

The transaction has been approved by all of the parties' boards of directors, and is expected to be completed during the fourth quarter of 2008. The transaction is subject to various closing conditions including, but not limited to, the approval of Clearwire's stockholders, and receipt of regulatory approvals, including the approval of the Federal Communications Commission and clearance under the Hart-Scott-Rodino Act.
Governance

The new Clearwire's board of directors will be comprised initially of 13 members, including seven directors to be named by Sprint of whom at least one will be independent; four named by the strategic investors of whom at least one will be independent; one named by Eagle River, the private investment company controlled by wireless pioneer Craig O. McCaw; and one independent member to be nominated by the new company's Nominating Committee.

The parties currently expect Craig McCaw to serve as non-executive chairman of the board. Along with McCaw, other directors expected to serve for an initial one-year term as new Clearwire board members are Dan Hesse, Sprint's president and CEO, Brian Roberts, Comcast's chairman and CEO, and Glenn Britt, Time Warner Cable's president and CEO. In addition, John Stanton, chairman and CEO of Trilogy Equity Partners and former chairman and CEO of VoiceStream and Western Wireless, is expected to serve on the board.

Overview of the New Clearwire
The new Clearwire will apply for listing of its common stock on the NASDAQ under the ticker "CLWR." The management team will be led by Benjamin G. Wolff, currently CEO of Clearwire, as the new company's CEO and Barry West, currently Sprint's Chief Technology Officer and XOHM business unit leader, as president of the new Clearwire. Staffing for the new Clearwire will include the talent from both Clearwire and Sprint's XOHM business unit. The headquarters of the new Clearwire will be located in Kirkland, Wash. The new company will continue to have a significant employee presence, including research and development, in Herndon, Va.

The investment by Intel Capital, Google, Comcast, Time Warner Cable and Bright House Networks will be used to advance the development of the new Clearwire's mobile WiMAX network. This nationwide footprint is underpinned by the substantial next-generation wireless broadband spectrum portfolio that Sprint and Clearwire collectively hold in the United States. The combined wireless spectrum should allow the new Clearwire to achieve greater coverage, cost and operational efficiencies, and bandwidth-utilization than either company could by operating alone. The new Clearwire is targeting a network deployment that will cover between 120 million and 140 million people in the U.S. by the end of 2010.

In addition to spectrum, Sprint will contribute to the new Clearwire certain hardware, software and all of its WiMAX-based trademarks and other WiMAX-related intellectual property. The new Clearwire expects to materially reduce capital and operating expenditures by leveraging Sprint's existing infrastructure, reducing the cost of building out the mobile WiMAX network nationwide. The new Clearwire expects to utilize Sprint's towers, fiber network and IT support at favorable bulk rates. Sprint also will realize cost savings for its core business by sharing certain costs of towers and other infrastructure.

The agreements with the strategic investor group define significant new commercial relationships, including:

* Intel will work with manufacturers to embed WiMAX chips into Intel® Centrino® 2 processor technology-based laptops and other Intel-based mobile Internet devices, and will market the new company's service in association with Intel's performance notebook PC brand.
* Google will partner with the new Clearwire in the development of Internet services, advertising services and applications for mobile WiMAX devices. In addition, Google will be the search provider and a preferred provider of other applications for the new Clearwire's retail product.
* Google will partner with the new Clearwire on an open Internet business protocol for mobile broadband devices. The new Clearwire will support Google's Android operating system software in its future voice and data devices that it provides to its retail customers.
* Sprint, Comcast, Time Warner Cable, and Bright House Networks will enter into wholesale agreements with the new Clearwire, becoming 4G providers of new Clearwire's mobile WiMAX service.
* Comcast, Time Warner Cable, and Bright House Networks and, after completion of the transactions, the new Clearwire, will enter into 3G wholesale agreements with Sprint, becoming bundled providers of Sprint's wireless voice and data services, expanding the reach of Sprint's network to more customers, while providing the cable companies a simpler, more effective vehicle to bundle wireless services.
* Sprint and Google have also entered into an agreement related to Sprint's mobile services, whereby Google will become the default provider of web and local search services, both of which will be enabled with location information, for Sprint. Sprint will also preload several Google services - including Google Maps for mobile, Gmail and YouTube - on select mobile phones and provide easier access to other Google services.
* Google and Intel have options to enter into 3G and 4G wholesale agreements with Clearwire and Sprint respectively and have no current plans to do so.

If this is entering the mix with Comcast's new "protocol agnostic" network management technique (in something closer to English, very temporarily slowing down your whole connection if you're hitting the pipe really hard at the same time as a lot of other people in your area), you're looking at an uncomfortably restricted pipe (to me anyway), even if they're not targeting torrents specifically anymore, and the overage fees honestly aren't obscene.

The scary part is that this happening actually does make sense, for a couple of reasons. One, P2P traffic isn't the biggest bandwidth hog, it's streaming video, and this'll get people to (maybe) cut down on their habit, however they're sucking down bandwidth. Second, it'll keep them (sorta) clean with the FCC, which is seriously leaning toward transparency rules that would make ISPs be up front about this sort of thing anyway. And after all, there's no better motivator to watch your ass than money slipping out of your back pocket—no schmancy traffic management necessary. [Broadband Reports]

He puts the deal value at $12 billion all told, with a billion from Comcast, (another) one billion from Intel and half billion each from Time Warner and Google. The other new nugget is the updated timeframe for WiMax: Two years, meaning it'll effectively arrive at the same time as LTE from AT&T and Verizon, making WiMax's uphill battle that much steeper. That said, we'd consider changing "may not be easy for the group to create a wide-ranging and adequately reliable service" to "big ego clusterfuck."

Update 2 The Wall Street Journal brings more color (like that Comcast roped Time Warner into the deal Sprint's request) and more of the human story, odd for usually cold Journal, focusing on surprisingly affable (almost cheery given Sprint's situation) Sprint CEO Dan Hesse: "It's sort of like, 'Dan, you haven't vacuumed the bedroom,"' Mr. Hesse said. "Well, that's because the house is on fire. I will get around to it later." It's not behind the subby wall, so if you've gotten this far into the post, you should read it. [Fortune]

Warner's been toying around with it for a little while and been increasingly open to internet distribution, so it doesn't come as a major surprise. Interestingly, according to their numbers, offering same-day releases on the internet only eats into DVD rentals by 3-5 percent, and actually increases sales. Plus, online rentals/sales double bring them more than double the profit margin of physical discs, so everybody wins, except for Blockbuster. (So Hollywood really does have nothing to fear from online distribution.)

The best news though? Head of Warner's home video said that they're trying to make online rentals "at least as lenient" as grabbing a DVD from Blockbuster, breaking open that 24-hour window. Now that would be a deathblow for Blockbuster. [Bits]

He continues that "Based on testimony we've received thus far, this equipment was typically deployed over a wider geographic area or system, and is not even capable of knowing when an individual ... segment of the network is congested."

Honestly, the Comcast/P2P/net neutrality story is a bit played out, and frustrating, because nothing material has really happened, and I'm actually sort of tired of it. The major reason I'm posting this is because I was specifically told something by Comcast PR—which I gave the benefit of the doubt, because while PR cajoles and spruces, they rarely intentionally deceive—which the chairman of the FCC is stating to be categorically untrue. That's unfortunate, and disconcerting.

While we should always fact check, we shouldn't have to worry about being lied to. I'm waiting for them to get back to me, and I hope there's just some mixed signals going on here, but their response to Computerworld, that doesn't flat-out deny Martin's accusations, isn't very reassuring. [Computerworld via /.]

While AT&T uses twisted pair cable to get to your front door, and Comcast uses coax, once they're inside, the signals share cabling. This means if you use U-Verse TV and Comcast broadband, and "feedback" from the U-Verse system spills upstream, it can affect the service of everyone connected to the same Comcast node. Comcast alleges that poor installation by U-Verse engineers is letting these signals leak via poor filters or systems using similar frequencies, and that AT&T has not motivated itself to fix the problem.

Unsurprisingly, AT&T is highly skeptical that U-Verse is the source of the issue. This is AT&T's position on the case: the "suit lacks merit," said a spokesperson. It's a bit of dirty work to try to keep them out of the Illinois cable TV market and AT&T will keep trying "to bring Illinois consumers a new choice for video services as we have in other states and will oppose Comcast's efforts to thwart that."

Comcast, however, is taking a holier-than-thou attitude: "AT&T should act like a good corporate citizen and work with Comcast to resolve this privately." Because Comcast supposedly behaves like that themselves, yes? [Arstechnica]

No, p2p is no longer the single biggest traffic whore, responsible for only 20 percent of total traffic. It's streaming video, like YouTube and Hulu, which is now 50 percent of total traffic. During peak congestion—the times when Comcast will slow you down for hitting the pipe too hard—70 percent of it is http.

Which explains Comcast's flip on network management and why it's a total smokescreen. P2P is no longer the number one leech on networks, it's streaming video across regular old http. So they don't need to throttle p2p exclusively anymore—they need to slow the whole pipe down, hence the new "protocol agnostic" scheme. But they can look good showing off how much they love p2p. It remains to be seen how much of it the FCC will eat up. [GigaOM]

FCC Chairman Kevin Martin:

"Application designers need to understand what will and what will not work on the network, and consumers must be fully informed about the exact nature of the service they are purchasing."

"Particularly as broadband providers are trying to provide tiers of service, it's critical to make sure that we are understanding that the broadband network operators are able to deliver the speeds and service that they are selling."

Poor Comcast, it really is looking like their whole P2P vaudeville show might not stop the FCC after all. If none of this made any sense to you, check out our quick guide to ISPs and network practices, and what they mean for you. [Reuters]

• "Content available on cable networks is changing all the time. New services are added, some are redesigned and others are removed."

• "SDV technology is designed to expand the range of services offered by cable operators, not reduce them."

• "Many CE companies chose to implement receivers that lack the necessary circuitry to provide a full two-way cable experience with the CableCard."

• "No product was ever originally designed to work with this new Tuning Adaptor including the existing Tivo UDPC products...Since consumer products don't use Microsoft Windows, they don't have plug-in drivers. Instead a new firmware update is needed to include the necessary driver controls to interact with this new external device. Makers of any existing UDCPs that already have a USB port (there are many) are just as able to provide new firmware as Tivo, if they chose to do so."

• "Consumers should look for products identified as tru2way to ensure they will be able to get all the new and advanced services their digital cable systems can deliver."

Last we checked, Panasonic was the only one with a tru2way TV pegged to an actual shipdate, and Comcast was the only cable company even talking about implementing it this year, but again, hopefully we'll hear a lot more about this come the NCTA's Cable Show on May 18-20. We certainly look forward to hearing good news from CableLabs (and we're sure they look forward to sharing some). [CableLabs; Original HD Guru Story]

As Ars points out, they don't plan on inviting consumer groups to this constitutional convention, viewing it as more of an "industry" deal. Which is what we told you guys earlier about ISPs suddenly seeing the light of P2P. It's an industry thing, not a you thing. Protocol agnostic management, for one, can simply mean slowing down all your traffic equally, be it p2p or streaming video.

Also, if they make a "bill of rights" on their own terms, it's a further case for the industry that the FCC doesn't need to step in with a government-mandated bill of rights or net neutrality rules—which no ISP wants, not even Verizon, who is the most vocal about not policing or throttling their pipes.

The upside, again, is smarter use of increasingly taxed pipes with more efficient protocols. But that's not necessarily about you. And if the rest of the industry doesn't jump aboard, this could all amount to jack. [Comcast, Ars, Multichannel]

The scariest scenario is invasive "packet filtering," where companies look at what you're downloading and punish you for perceived misconduct. Comcast was the poster child for BitTorrent throttling before getting cozy with it to avoid an FCC smackdown, and AT&T infamously broached the idea of filtering its entire network for copyrighted content. Beyond packet filtering, there are two potentially more widespread ways big ISPs can try to bring down the Torrent mad: "Caps," already used by local ISPs such as BendBroadband and Sunflower, are set amounts you can download each month. Anything over that, like cellphone plans, means overage penalties. "Throttling" is the ability of the ISP to, any given moment, put the brakes on your connection when you're being too much of a resource hog. Here's where the ISPs stand on the tactics above and your pipes.

AT&T

We have said consistently that AT&T will not allow itself to become a policeman or enforcement agent on the Internet. We have also made clear that there is nothing inherently wrong with P2P applications like BitTorrent, which are advanced, and legal, technologies that are used and welcomed on our network... We do not block or degrade any P2P application to manage network congestion. At the same time, we feel that any company involved with the Internet should be concerned about illegal activity, whether it is identity theft or intellectual property theft, and should be prepared to cooperate in legal means of addressing such problems while protecting fully the privacy of our customers.

Update: AT&T wrote in with an additional statement: "We can't give you details on our specific network management techniques to handle times of high-volume" citing similar reasons as Time Warner, "but those techniques don't include degrading or blocking traffic."

Comcast:
Here's the statement we got pre-BT chumminess, though we now know that Comcast is moving to a more management style that'll temporarly slow all traffic, whether it's cracked copies of Final Cut Pro from your favorite P2P or YouTube, to a drip during congestion:

We have a responsibility to provide all of our customers with a good Internet experience and we use the latest technologies to manage our network so that they can continue to enjoy these applications. During periods of heavy peer-to-peer congestion, which can degrade the experience for all customers, we use several network management technologies that, when necessary, enable us to delay—not block—some peer-to-peer traffic.

Comcast is not currently using or testing any filtering technologies. We agree that copyright owners have a right to protect their content. We work well with them under existing law and will continue to work with content owners to find solutions to help support their efforts around piracy. We cannot speculate on what AT&T is doing or how its technology works.

Speakeasy
They got back to us after we went to press, but here's what they had to say on network management: "Our position on this is that [we] attempt to manage our network to account for peak usage so that we do not need to throttle bandwidth of customers pending applications in order to keep our pipes unclogged." And on content filtering: "Speakeasy does not currently do any content filtering, and at this time we have no plans to filter content."

The Takeaway
Since BitTorrent became a rallying point for net neutrality advocates (and caught the attention of the FCC) ISPs have made a show of stepping back from P2P hampering to shield themselves from both nerd backlash and FCC Chairman Kevin Martin's steely gaze. Verizon and AT&T, for instance, both pointed me toward their corporation-friendly "P4P" file-sharing development initiatives for more effective downloading (at an unknown cost), and Comcast has touted its R&D with BitTorrent.

All of that's a pretty effective smokescreen for moving to more hardcore capping and throttling, allowing them to cry "We treat all traffic equally, neutrally even!" while nuking all of your traffic without prejudice. Most people downloading the hugest amounts are probably not paying for all that content. And note that everyone except Verizon left themselves plenty of hedge space on the issue. Time Warner says it doesn't talk about it because it's afraid others will use it in marketing; well, Verizon is kinda sorta using their total lack of filtering as an underground marketing thing already, which is especially effective when coupled with FiOS's insane speeds.

Even with ever-higher speeds, bandwidth will remain an issue for ISPs as they try to cram more and more HD content down pipes you're using to download movies, swap music and other increasingly bandwidth-intensive applications. So more management is going to go hand and hand with more bandwidth, make no mistake.

But it doesn't have to be a bad thing, if they're smart about it. They make a genuine movement to smarter protocols and management techniques that don't hose anyone's broadband (like that P4P stuff, if it's really open), but instead help everyone squeeze every last bit out of it as efficiently as possible. We can only hope.

DVice has a side-by-side of the FiOS vs. Comcast comparison as well, and things look pretty damn ugly.

The forum poster says that the compression isn't too horrible with still images, but gets really bad when stuff moves around.

The greatest differences are seen with movement. With slow movement on Comcast, the first thing you notice is added noise and a softer image, as fine detail is filtered from the picture signal. The greater the rate of movement, the more detail you lose and the more noise you see. With intense movement, you see more blocking and skipped frames. In VideoRedo, I noticed that a number of frames in the FiOS signal simply did not exist in the Comcast signal during motion intensive scenes. This may be responsible for the stutter and excessive motion blur seen with some video sequences on Comcast.

To Comcast's credit, I saw little to no difference on movie channels such as HBO, Cinemax, and Starz. I did see some blurring and reduced detail during fast movement on Starz, but the recordings from Cinemax and HBO were virtually identical, even on action movies such as 300 and Gladiator. When there was blocking on the Comcast feed of Cinemax, that blocking was also on the FiOS feed.

[AVSforum via DVice]

"Protocol agnostic" sounds a lot like net neutrality, treating all data equally, be it P2P or FTP. Except in this case, it means slowing all packets equally when traffic reaches an unacceptable volume. Under the current system, which was described as "surgical" in its precision when we talked to Comcast about it just a few days ago, only the torrent uploads of super traffic hogs (something like the 5 percent worst abusers, similar to Time Warner's estimation) are delayed, and only when and where there's heavy congestion. So, you could be hammering the shit out of your connection on FTP, and you wouldn't see the kind of management being applied to someone on the block using torrent if the network was congested.

Now, it doesn't matter how you're raping the connection—they slow your whole pipe down if you're "disproportionately" swallowing bandwidth when the network's congested (I'm repeating that phrase to emphasize that's the only time they hit the nuke button), whether it's BitTorrent or you have 100 YouTube vids running at once. It's a nice marketing move: Comcast actually gets to engage in stiffer throttling while gaining credit for easing off BitTorrent. What's good is that it's promising to be extremely upfront and transparent about how and why it manages traffic, which takes the evil bite out of the practice.

But it also makes it more acceptable to the average Joe, clearing the way for every ISP to do so: "Hey, we told you we might do it."

Another reason they made the switch? To try to keep the FCC from laying down net neutrality rules, which no ISP seems to want. Head honcho Kevin Martin has a huge hard-on for reaming the cable industry, in particular Comcast, and the recent dustup with BitTorrent had the FCC seriously considering laying down net neutrality rules for the first time. In my dealings, Comcast and BitTorrent execs actually seem pretty friendly toward one another; presumably they wanted to work it out without the government stepping in.

The people who want net-neutrality regulation may get their wish in the end, since Martin still isn't impressed with the show of friendship:

"While it may take time to implement its preferred new traffic management technique, it is not at all obvious why Comcast couldn't stop its current practice of arbitrarily blocking its broadband customers from using certain applications. Comcast should provide its broadband customers as well as the Commission with a commitment of a date certain by when it will stop this practice.

First, the good news: Comcast and BitTorrent are joining forces to "run BitTorrent's technology more smoothly on Comcast's broadband network, and allow Comcast to transport video files more effectively over its own network in the future." Yes, Comcast is going to embrace net neutrality completely by the end of the year, allowing all sites and programs equal access to bandwidth. Hey, that's a change of policy, right? Can't complain about that. That doesn't mean Comcast is now the ISP of choice for heavy BT users, however.

Comcast CTO Tony Warner says that "Rather than slow traffic by certain types of applications — such as file-sharing software or companies like BitTorrent — Comcast will slow traffic for those users who consume the most bandwidth." So feel free to use BitTorrent, just don't use it too much or your speeds will dip down to nothing.

This will probably lead to the end of all-you-can-eat broadband plans and force heavy downloaders to pay extra for all their bandwidth in the near future. But hey, at least everything is on the level now, right? At least we think so. [WSJ via TorrentFreak]

Two-way CableCards basically mean that the cable box, with all its features including VOD and PPV, is built into the TV. Right now, the CableCard in a TiVo or Media Center PC will only get you video. Panasonic will integrate OCAP into its mid-level PZ80 line, in 50" and 42" models this summer. Though the list prices for the TVs without OCAP are $2499 and $1599 respectively, the price of OCAP itself will be quite noticeable. Though there are some shared-chip advantages to integrating the set-top box, Panasonic still says "it'll be the cost of a cable box built into a TV," so like, not cheap.

Panasonic is currently testing with Comcast in five markets, and are building this to spec with CableLabs and all of the cable companies, but that's no guarantee that any carrier will be ready to deploy when the TVs are, so get ready for cranky customer service operators and a lot of educational consumership. That is to say, you might have to teach your cable carrier about this new technology. [Panasonic 2008 Viera Lineup; CableLabs OpenCable]

"The time has come for a specific enforceable principle of nondiscrimination. This principle should allow for reasonable network management, but make crystal clear that broadband network operators cannot shackle the promise of the Internet."

Here's why I'm a Kevin Martin fanboy: He called out Comcast for selling tiered bandwidth packages while crapping up the service at the same time, saying "it's a little odd" before asking, "Doesn't it undermine your arguments and isn't it inconsistent?"

Topping it off, the NY Attorney General just subpoenaed Comcast for information about its non-neutral network practices, so we might be looking at even more regulatory beatdowns.

It sucks to be Comcast right now, but I've never been happier with the FCC. [NYT, NYT]

Movie debuts, television series premieres, action trilogies and Oscar-winning films pack Comcast's on-demand service

More Hot Hits Added Every Week to Entertain Viewers and Deliver More High-Definition Choices Available Anywhere, Any Time

Top VOD Titles Include: The Bourne Trilogy, Michael Clayton, the Rush Hour Trilogy, and Academy-Award Winners Ray, Traffic, The Pianist, The Queen, Rain Man, The Departed, Happy Feet

PHILADELPHIA, PA - February 4, 2008 - Comcast, the nation's leading provider of entertainment, information and communications, announced top new titles on its signature video on demand (VOD) service, most available in HD. The new lineup includes:

* Hollywood hits that are available the same day the films hit DVD;
* Hot television series premiering on VOD at least one week before airing on linear television channels;
* Two action-packed, blockbuster trilogies; and
* Special Academy Award-winning films for every movie buff.

The news follows Comcast's announcement of Project Infinity, its vision to deliver exponentially more content choice on TV, including more high-definition (HD), sports, movies, kids' programs and network TV shows, which the company introduced at the Consumer Electronics show on Jan 8th.

"Television viewing has changed and consumers have an insatiable appetite for personalized content delivered directly to their TVs. We're leading the charge and our customers love it" said Derek Harrar, Senior Vice President and General Manager of Video Services for Comcast. "With top titles like the Bourne and Rush Hour trilogies, we're giving our customers more movies, more shows and more HD than anyone else&mdashall available at the click of their remote control."

These new viewing choices are part of Comcast's video-on-demand lineup with more than 10,000 VOD selections available each month. Comcast customers now are selecting On Demand more than 100 times per second, with about 275 million views monthly; and since 2003, the company has seen viewership grow dramatically, surpassing six billion views.

Comcast's On Demand highlights are outlined below, along with links to details about each of them provided by Fancast.com, which Comcast also launched at CES. Fancast.com is the first online destination that enables users to watch, manage and find entertainment content wherever it is available - on Fancast, on television, online, on DVD or in theaters.

Hollywood blockbuster trilogies available On Demand include:

Bourne Trilogy
Available now, also in HD
http://www.fancast.com/movies/The-Bourne-Identity/16910/main
http://www.fancast.com/movies/The-Bourne-Supremacy/10291/main
http://www.fancast.com/movies/The-Bourne-Ultimatum/94583/main

Rush Hour Trilogy
Available now, also in HD
http://www.fancast.com/movies/Rush-Hour/11286/main
http://www.fancast.com/movies/Rush-Hour-2/8051/main
http://www.fancast.com/movies/Rush-Hour-3/96289/main

Feature films available On Demand the same day they're released on DVD, including:

Shoot Em Up
Available now, also in HD
http://www.fancast.com/movies/Shoot-em-Up/91231/main

Mr. Woodcock
Available now, also in HD
http://www.fancast.com/movies/Mr.-Woodcock/9015/main

Invasion
Available now, also in HD
http://www.fancast.com/movies/The-Invasion/15476/main

The Brave One
Available 2/5, also in HD
http://www.fancast.com/movies/The-Brave-One/15335/main

Rendition
Available 2/19, also in HD
http://www.fancast.com/movies/Rendition/96130/main

No Reservations
Available 2/12, also in HDhttp://www.fancast.com/movies/No-Reservations/8030/main

Michael Clayton
Available 2/19, also in HD
http://www.fancast.com/movies/Michael-Clayton/30659/main

Academy Award-winning favorites this month;
With more than 30 Academy Award-winning movies available On Demand in February, any movie buff can find what they're looking for, with titles like Ray*, The Pianist*, Traffic*, The Queen*, Dances with Wolves, Rain Man, The Departed and Gandhi—as well as family favorites like Happy Feet and Babe* for younger fans.
*These titles also are available in HD.

Premium and free television premieres available On Demand include:

The Tudors
First season available 2/18 to all Comcast Digital Cable customers, even if they don't subscribe to Showtime, also in HD; second season premiering in March, available to Showtime subscribers, also in HD
http://www.fancast.com/tv/The-Tudors/95710/main

The Wire
Available now
http://www.fancast.com/tv/The-Wire-%28HBO%29/88049/main

Flavor of Love
Available 2/4, also in HD
http://www.fancast.com/tv/Flavor-of-Love/1706/main

Also available are the highly anticipated series, Whitest Kids U' Know and Pinks, all also in HD, and the movie Husband for Hire.

The Spin Comcast launched Digital Voice nearly three years ago, making it one of the first cable behemoths to capitalize on the trend toward IP telephony. But don't tell Comcast it's a VoIP provider—it much prefers (nay, insists on) the term "true home phone replacement system." The euphemism is designed to reassure potential customers that their calls won't be traveling along that big, scary internet backbone that's prowled by the most nefarious characters this side of Texas Chainsaw Massacre. Comcast takes advantage of this consumer paranoia by stressing that Digital Voice data doesn't travel over the public internet. The idea here is that you'll be willing to pay a premium over Vonage's lower rates in exchange for peace of mind. And, hey, you're still saving a bundle over what you fork over for copper wire, right?

Counterspin Yeah, you save, but the service still seems a tenner or so overpriced. The $39.95 rate that Comcast usually trumpets is only if you sign up for the company's triple play package. Take away the TV component and rates vary widely, often fluctuating due to introductory promotions. Once those teasers run out, consumers can experience sticker shock. Check out these reviews from DSLReports; a lot of folks once enraptured with Comcast Digital Voice ended up switching away purely for fiscal reasons. My big question is, Why is there such a spread between Comcast Digital Voice and Vonage? Comcast obviously has higher capital costs, but it can also partially subsidize its phone-service offering with TV loot. And keep in mind that Vonage has kept its prices static despite incurring massive costs from various patent disputes. Oh, Vonage customers also don't have to tip the cable guy for installation—though, granted, most consumers would rather stick a fork in a toaster than fiddle with a router.

Mission Accomplished? This ad's humorous (if slightly macabre) all-about-price pitch is just a short-term play. At CES, Comcast bragged ad infinitum that it had become the nation's fourth largest provider of residential phone service, eclipsed only by some Baby Bells (Verizon, AT&T, and Qwest). But Comcast's pricing advantage will rapidly disappear as those companies go large with their own VoIP services—er, sorry, "home phone replacement systems." So Comcast is scrambling with the pricing message now, but seems prepared to replace it with a tech-centric campaign once AT&T's U-verse gets cranking. In the next few months, expect Comcast to start touting its service's up-and-coming features: caller ID that appears on your PC and TV, remote programming of DVRs, and even Comcast-branded cordless phones (watch out, Uniden).

Hype-O-Meter 6 (out of 10). A mildly funny, mildly successful attempt to reach technophobic consumers who've yet to grasp the value of IP telephony. But, man, I feel for that mom—isn't there a chestnut about Ritalin being easier than parenting?

Brendan I. Koerner is a contributing editor at Wired, a columnist for Slate, and author of the forthcoming Now the Hell Will Start. His Hype Sheet column appears every Thursday on Gizmodo.

Read more Hype Sheet

Google's coming out statement—essentially "whoever wins, everybody does"— was noticeably limp. No fire in their words probably signals no fire in their bid, basically.

On the other hand, Verizon throwing open its network is a decidedly hard throwdown with regard to its auction intentions. The winner of the 700MHz's contentious C Block is required to have such an open network (though only on that chunk), meaning Verizon may be strongly signaling its intent to bid and win. Gird your loins for endless "It's the Network" catchphrases, just in case. [MocoNews, CNN]

FCC Chairman Kevin Martin's proposal to limit the growth of cable providers had been floating around for a bit and was sort of expected not to fly, but two of the four other commissioners have thrown in with him on the vote. It's possible—if not probable—that the courts could get involved and throw out the decision, which Reuters points out they did six years ago.

The final vote's expected to go down sometime before Dec. 18—so the two commissioners have time to change their mind—but Comcast will probably start rabble-rousing long before then. They're probably already in the vicinity anyway, going on about the FCC's decision a few weeks ago killing apartment-exclusive contracts. All in all, quite a beating for cable from the FCC this month. [WSJ, Reuters, Flickr]

The upstream magic—where cable is so sorely gimped right now—is going to remain hobbly, at least at first. And it's not 'cause Comcast is incompetent (for a change). As "a reflection of the status of upstream channel bonding technology" we won't see upstream on steroids until deep into 2008 or even 2009. Consequently, while downstream's getting a Rosie O' Donnell plumping with initial offerings in the 20-50Mbps range—what Verizon's offering now—upstream speeds still aren't going to stack up, dulling the competitive edge DOCSIS 3.0 was supposed to bring against fiber.

That means The Flash is going to stay ahead of Quicksilver for the foreseeable future, since by 2009 Verizon's GPON-based FiOS will probably cover the majority of its footprint, allowing them to flip a switch to out-juice whatever cable's got by then. [Broadband Reports]

The EFF asked, "What's so bad about what Comcast's actions?"

One objectionable aspect of Comcast's conduct is that they are spoofing packets—that is, impersonating parties to an exchange of data. Comcast is essentially deploying against their own customers techniques more typically used by malicious hackers (this is doubtless how Comcast would characterize other parties that forged traffic to make it appear that it came from Comcast or its subscribers). In this sense Comcast is behaving worse than if they dropped a propor¬tion of packets under congested circumstances in order to throttle bandwidth usage, or even if they blocked certain ports on their network. In other words, Comcast is essentially behaving like a telephone operator that interrupts a phone conversation, impersonating the voice of one party to tell the other that "this call is over, I'm hanging up."

Comcast maintains it only "delays" traffic and is "not blocking anything," swearing stuff will get to where it's going eventually—traffic shaping, which a lot of ISPs do. But according to the AP and EFF, they're actually forging packets telling both ends of a connection the other side doesn't want to play, killing it like innocent children on a playground.

Hart's seeking class-action status for the suit, disclosure of traffic shaping—or blockage, as it were—in ads and a ban on blocking applications. All reasonable, though if goes class action and prevails, it won't probably won't look so reasonable to Comcast's coffers. [Ars Technica, Flickr]

"Consumers in apartment buildings and condos across the nation received a blow today from the action taken by the FCC. The result of this decision is likely to be higher prices for services and years of litigation and uncertainty for consumers. The significant concessions building owners have been able to bargain for on behalf of their residents will be lost."

The argument for th