January 20, 2016 (Poverty and the Cost of Broadband)

BENTON'S COMMUNICATIONS-RELATED HEADLINES for WEDNESDAY, JANUARY 20, 2016

MMTC’s 7th Annual Broadband and Social Justice Summit https://www.benton.org/calendar/2016-01-20

INTERNET/BROADBAND
   Poverty and the Cost of Broadband - research
   We cannot afford another digital divide - Satya Nadella op-ed
   Microsoft to Donate $1 Billion in Cloud Services to Nonprofits and Researchers
   Co-investment in ultra-fast broadband access networks: Is there a role for content providers? - research [links to Benton summary]
   FBI mulls connection between Super Bowl, CA fiber optic cable cuttings [links to Ars Technica]
   Despite battling for net neutrality, Netflix sees no problem with T-Mobile’s Binge On

OWNERSHIP
   National Hispanic Media Coalition Opposes Charter-Time Warner Cable Deal
   California to Vet Proposed Charter/TWC Merger Jan 26 [links to Broadcasting&Cable]
   Univision buys controlling stake in The Onion, Clickhole, AV Club [links to Ars Technica]
   Microsoft Acquires MinecraftEdu, a modified version of Minecraft tailored for use in schools [links to New York Times]

GOVERNMENT COMMUNICATIONS
   E-mails pull back the curtain on struggle over Network Neutrality rules
   Hillary Clinton e-mails contained 'need-to-know' classified info
   The Color of Surveillance - Slate op-ed

CONTENT
   Verizon launches its own sponsored data program
   Sponsored Data and Net Neutrality: Will Verizon FreeBee Avoid Problems?
   Despite battling for net neutrality, Netflix sees no problem with T-Mobile’s Binge On
   Fighting Terrorism on Facebook Isn’t That Easy
   Twitter Experiences Worldwide Disruptions [links to Benton summary]
   VPN providers mad about Netflix crackdown but say they can evade it [links to Benton summary]
   HBO is replacing its cable TV option in Spain with a new streaming service [links to Verge, The]
   Linux bug imperils tens of millions of PCs, servers, and Android phones [links to Ars Technica]

PRIVACY/SECURITY
   Rarely Patched Software Bugs in Home Routers Cripple Security [links to Wall Street Journal]
   These are the worst passwords of 2015 [links to Washington Post]
   Op-Ed: Creating a risk-aware culture through built-in privacy [links to International Association of Privacy Professionals]

WIRELESS/SPECTRUM
   Verizon argues for combining 37 GHz, 39 GHz into single band for 5G [links to Benton summary]
   Why Your Next Car Is Likely to Have Its Own Cell Service - analysis [links to Benton summary]
   As More Pay by Smartphone, Banks Scramble to Keep Up [links to New York Times]
   After five years of conflict with Apple, some Samsung phone features are banned [links to Ars Technica]

TELECOM
   AT&T Filing to Discontinue Operator Services Offers a Blast from the Past [links to Benton summary]

TELEVISION
   TV Ratings May Be Down, but the Choices Are Many [links to New York Times]
   Baseball Goes On Trial for Millions of Fans, Billions of Dollars [links to Bloomberg]
   Public Knowledge Urges FCC to Ensure a Competitive Set-top Box Marketplace for Consumers [links to Public Knowledge]
   Cable Rates Rise 3%-4% on Average in 2016 [links to Multichannel News]
   Nielsen to Use Facebook and Twitter in New Ratings System [links to New York Times]

ELECTIONS & MEDIA
   Donald Trump and the Media, Co-dependents - op-ed [links to Benton summary]
   Why Donald Trump is now targeting Apple and its ‘damn computers’ [links to Washington Post]
   Sen Sanders wants more media coverage. He should be careful what he wishes for. - WaPo analysis [links to Benton summary]
   RNC to broadcast outlets: No ‘gotcha’ questions, or else - WaPo analysis [links to Benton summary]

COMMUNITY MEDIA
   Letter to Editor: Librarians’ Role Changes as Information Does [links to Wall Street Journal]

JOURNALISM
   Martin Luther King, Video and #Blacklivesmatter - HuffPo op-ed [links to Benton summary]
   Why ProPublica Joined the Dark Web [links to ProPublica]
   Univision buys controlling stake in The Onion, Clickhole, AV Club [links to Ars Technica]

DIVERSITY
   The Color of Surveillance - Slate op-ed
   Here's Spike Lee’s solution for problems like #OscarsSoWhite [links to Vox]
   'Academy Has A Problem,' David Oyelowo Says At MLK Event Honoring Academy President [links to National Public Radio]
   Diversity In Hollywood: Here's What Critics Are Saying About Round 2 Of #OscarSoWhite [links to National Public Radio]
   Can't hack it: Tech's diversity efforts are 'a failure' [links to CNN Money]
   Girls Who Code to give $1 million to underprivileged girls [links to CNN Money]
   Oakland (CA) tech hub fights for diversity [links to USAToday]
   Martin Luther King, Video and #Blacklivesmatter - HuffPo op-ed [links to Benton summary]
   Apple's US diversity barely improved in 2015 [links to Verge, The]

AGENDA
   TechTank looks ahead to 2016 [links to Brookings]

STORIES FROM ABROAD
   Facebook’s Regulatory Battle Over Free Basics in India Is Getting Feisty
   Sheryl Sandberg of Facebook will urge Europe to create a “pro-innovation” environment unhampered by “poorly designed regulation” [links to Financial Times]
   Pakistan lifts 3-year ban on YouTube [links to Financial Times]
   In Growing Spat, Facebook Claims India Telecom Regulator Blocked Its E-mails [links to Benton summary]
   Universal service policy in China (II): Case study and institutional variables - research [links to Benton summary]
   HBO is replacing its cable TV option in Spain with a new streaming service [links to Verge, The]

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INTERNET/BROADBAND

POVERTY AND THE COST OF BROADBAND
[SOURCE: Benton Foundation, AUTHOR: Colin Rhinesmith]
Much of the research on broadband adoption has focused on understanding the factors that influence whether an individual is likely to pay for high-speed Internet services. These factors have been used to predict rates of broadband adoption. As part of this thinking, the phrase “willingness to pay” has become widely accepted within broadband adoption literature. This phrase focuses on what an individual is willing to pay for high-speed Internet access, while also paying attention to demographic characteristics of the individuals studied. However, my recent research for the Benton Foundation finds that cost continues to be a major barrier to broadband adoption. Successful efforts to bridge the digital divide need to address “ability to pay” rather than “willingness to pay.” Successful digital inclusion efforts should recognize the role that persistent poverty plays in shaping people’s abilities to access and use computers and the Internet. The low-income adults who participated in this study explained that paying for broadband is not as much of a choice that involves what they are willing to pay for different Internet speeds, but rather a choice between broadband service and the ability to pay for food. All of the low-income individuals and families I spoke with for this study understood the value of broadband connectivity. And most explained to me that cost remained the most significant barrier to their full adoption of broadband in the home. Low-cost or free computers and public access computing, in addition to low-cost or free Internet and digital literacy training, were also important to individuals and families as they worked with digital inclusion organizations to adopt broadband Internet in ways that were meaningful and relevant to their everyday lives. Having the ability to purchase Internet service for the home at a reduced price supports low-income people in other aspects of their lives: It makes it easier for them to apply for jobs; improves their computer skills for the workplace; helps their children complete homework assignments; and allows them to participate more fully in society.
https://www.benton.org/blog/poverty-and-cost-broadband
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NETFLIX AND BINGE ON
[SOURCE: The Verge, AUTHOR: Nick Statt]
Netflix CEO Reed Hastings says he doesn’t have a problem with T-Mobile’s controversial Binge On service — in fact, Netflix is actually a fan of it. "It’s voluntary to the customer. Every customer of T-Mobile can decide to turn it on or turn it off," Hastings said. "They’re not charging any of the providers. It’s an open program. Many of our competitors such as Hulu and HBO are in the program also." Netflix may be more inclined to defend this program because the company benefits from it: Hastings says that Netflix is seeing more viewership from T-Mobile customers — no surprise since it makes "unlimited video consumption possible." Hastings added that he hopes these kinds of programs expand further.
benton.org/headlines/despite-battling-net-neutrality-netflix-sees-no-problem-t-mobiles-binge | Verge, The
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WE CANNOT AFFORD ANOTHER DIGITAL DIVIDE
[SOURCE: Financial Times, AUTHOR: Satya Nadella]
[Commentary] What would a coherent policy framework with cloud computing at its heart look like? There are four elements. The first is investment in infrastructure that provides low-cost broadband offering rural areas access to the cloud. Second, we should build the next generation of skills to ensure data does not just sit in the cloud. Data are little more than exhaust without coders to write algorithms that extract insights from it. Third, governments need to lead by example. As holders of public data and the largest consumers of IT services, government agencies should make data accessible to the public and encourage people to use the cloud by doing so themselves. The final element is a balanced regulatory environment that protects both security and privacy while enabling data to flow freely across borders. Protection of freedom of expression and the right to privacy are vital. In the future we need not just an agreement to replace the longstanding “safe harbour” deal, struck down by the European Court of Justice last year, to protect privacy while enabling companies to transmit personal data across the Atlantic. We will need additional agreements, that enable privacy rights to follow data around the world. Microsoft will donate $1bn in cloud computing resources over the next three years to serve 70,000 non-profit and non-government organisations worldwide. Philanthropy is a start. But businesses, governments and NGOs must come together to harness the public cloud for public good and ensure that the benefits of technology are shared as widely as possible.
[Satya Nadella is chief executive of Microsoft and a co-chair of the World Economic Forum’s 2016 annual meeting]
benton.org/headlines/we-cannot-afford-another-digital-divide | Financial Times
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MICROSOFT TO DONATE CLOUD SERVICES
[SOURCE: New York Times, AUTHOR: Nick Wingfield]
Microsoft plans to give away $1 billion in cloud services to nonprofits and university researchers over the next three years, as the company updates its philanthropic initiatives to reflect shifts in technology. The plan is intended to make it easier for nonprofits and researchers to gain access to the same cloud computing tools that have enabled business to become more nimble and tackle big technical challenges. Microsoft’s cloud services include Azure, which allows organizations to host their own websites and online applications in Microsoft’s data centers, as well as Power BI, Dynamics CRM Online and other Microsoft-made applications for running organizations. CRM Online, for instance, is a customer relationship management service that can be useful for nonprofits in accepting financial contributions from individual donors. Microsoft hopes to give away its cloud services to 70,000 nonprofits in the next three years. The company plans to expand by 50 percent an existing program that donates Azure storage and computing resources to university projects. The company will also invest in low-cost Internet access technologies in developing countries.
benton.org/headlines/microsoft-donate-1-billion-cloud-services-nonprofits-and-researchers | New York Times
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OWNERSHIP

NATIONAL HISPANIC MEDIA COALITION OPPOSES CHARTER-TIME WARNER CABLE DEAL
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
Saying it should not be approved, the National Hispanic Media Coalition (NHMC) slammed the Charter-Time Warner Cable merger in testimony before the California Public Utilities Commission, which is holding a public hearing on the deal Jan 26. NHMC was noticeably absent from a memorandum of understanding (MOU) struck between Charter and a dozen diversity groups including the National Council of La Raza, League of United Latin American Citizens, National Hispanic Foundation for the Arts, SER-National, Hispanic Federation. NHMC president Alex Nogales said in the PUC filing that he could envision no conditions on the deal that would mitigate its harms. NHMC said the deal "would harm California consumers, particularly Latinos, by leaving fewer choices, negatively impacting diversity in programming and employment, and causing the prices consumers pay for communications services, like broadband Internet access, to go up."
benton.org/headlines/national-hispanic-media-coalition-opposes-charter-time-warner-cable-deal | Broadcasting&Cable | NHMC President Testimony
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GOVERNMENT COMMUNICATIONS

THE FCC’S NET NEUTRALITY DEBATE
[SOURCE: The Hill, AUTHOR: Mario Trujillo]
Newly released e-mails reveal the internal wrangling between Congress and the Federal Communications Commission in 2014 over the agency's controversial Open Internet/network neutrality regulations. The e-mails show FCC Chairman Tom Wheeler complaining that the agency’s “own words are being used against us” in meetings with congressional allies. At other points, the documents show FCC aides persuading lawmakers to refrain from publicly calling for a delay in voting on the rules. While there does not appear to be any bombshells, the e-mails provide a rare inside look at the agency and the pressure it was under as it developed controversial rules to ensure all Internet traffic is treated equally. Many of the e-mails span from April and May of 2014, when the FCC was considering scaled back rules, as opposed to the sweeping ones that were eventually issued. At the time, the FCC was considering proposed rules that net neutrality advocates said would allow Internet “fast lanes” for those willing to pay. Months later, the agency pivoted to a stricter regulatory scheme, which opponents trace back to pressure from the White House and others. Here are some moments from the months-long debate captured in the released e-mails:
The FCC’s then-director of legislative affairs, Sarah Morris, thought Sen Ed Markey (D-MA), Rep Anna Eshoo (D-CA) and House Democratic Leader Nancy Pelosi (D-CA) were key to getting support in Congress for an early version of net neutrality rules, which many advocates criticized as not going far enough.
In April 2014, Chairman Wheeler sent an e-mail to his top aides suggesting they were doing a poor job describing their proposed rules. The plan was meant to require a “baseline” level of Internet service, but could allow for some commercially reasonable “fastlanes” for Web companies willing pay. Chairman Wheeler said, “When I talk to Members [of Congress] they are reading our statement about baseline back to me as us confirming that service will be diminished.”
In May 2014, Former House Commerce Committee Chairman Henry Waxman (D-CA) was making a late press to convince the FCC to adopt a proposal that used Title II as a fallback for net neutrality rules. But Morris said it did not make sense politically because the agency would get all the political heat of Title II without the immediate benefit. She concluded that “I think they can be persuaded” to abandon their push if she hinted that it would harm the chances of getting other Democratic commissioners to vote with Wheeler.
Morris convinced Rep Eshoo not to publicly press for a delay amid concerns about the proposed rules.
The FCC staff debated a request from Sen Marsha Blackburn (R-TN) for a cost-benefit analysis of the proposed Internet rules. Not doing the analysis has been a major criticism from opponents. The FCC’s then-chief economist Tim Brennan said, “My impression is that policies designed to make markets more competitive rarely are subject to cost-benefit tests, whether it’s here, at the Antitrust Division, or the FTC.” Later he added, “If it isn’t obvious, don’t send this as a response to the Representative.”
In May 2014, media analyst George Reed Dellinger speculated that the FCC’s net neutrality work would be little more than a “face-saving effort.” The analysis was forwarded from Democrats on Capitol Hill to the FCC, eventually making it to Chairman Wheeler. He blew it off by saying, “no big deal. Analysts have to write something.”
One e-mail shows FCC lawyer Stephanie Weiner shooting down the idea that proposed net neutrality rules could regulate content on websites such as Google or Facebook, rather than just the Internet service providers that transfer that Web traffic. Rebekah Goodheart, a legal adviser for FCC Commission Mignon Clyburn, said she had heard increasing concerns about it. She speculated the rumor got started with an op-ed from FCC Commissioner Michael O’Rielly.
benton.org/headlines/e-mails-pull-back-curtain-struggle-over-network-neutrality-rules | Hill, The
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HILLARY CLINTON E-MAILS CONTAINED 'NEED-TO-KNOW' CLASSIFIED INFO
[SOURCE: The Hill, AUTHOR: Julian Hattem]
The secret information on former Secretary of State Hillary Clinton’s personal e-mail was more highly classified than previously understood, according to the intelligence community’s internal watchdog. In a letter to Capitol Hill, Intelligence Community Inspector General I. Charles McCullough III wrote that Clinton had highly classified information known as “special access programs” (SAP) on her private server. “To date, I have received two sworn declarations from one [intelligence community] element,” the watchdog told lawmakers in Congress. “These declarations cover several dozen e-mails containing classified information determined by the IC element to be at the CONFIDENTIAL, SECRET, and TOP SECRET/SAP levels. “According to the declarant, these documents contain information derived from classified IC element sources,” he added. The intelligence office is “coordinating with” the State Department “to determine how these documents should be properly treated in the FOIA [Freedom of Information Act] litigation.” The revelation raises the stakes for the types of information in Clinton’s server. More than 1,300 e-mails released by the State Department have been classified, though department officials insist that none of the information was classified at the time the e-mails were sent. The spy agency watchdog had previously claimed that Clinton also had two e-mails with “top secret” information on the server. However, SAP information is above and beyond that, and is used to restrict information on a “need-to-know” basis.
benton.org/headlines/hillary-clinton-e-mails-contained-need-know-classified-info | Hill, The
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THE COLOR OF SURVEILLANCE
[SOURCE: Slate, AUTHOR: Alvaro Bedoya]
[Commentary] We now find ourselves in a new surveillance debate — and the lessons of the Rev Dr Martin Luther King, Jr FBI surveillance scandal should weigh heavy on our minds. A few months after the first Edward Snowden revelation, the National Security Agency disclosed that it had itself wiretapped Dr King in the late 1960s. Yet what happened to Dr King is almost entirely absent from our current conversation. In NSA reform debates in the House of Representatives, Dr King was mentioned only a handful of times, usually in passing. And notwithstanding a few brave speeches by Sens such as Patrick Leahy (D-VT) and Rand Paul (R-KY) outside of the Senate, the available Senate record suggests that in two years of actual hearings and floor debates, no one ever spoke his name. There is a myth in this country that in a world where everyone is watched, everyone is watched equally. It’s as if an old and racist J. Edgar Hoover has been replaced by the race-blind magic of computers, mathematicians, and Big Data. The truth is more uncomfortable. Across our history and to this day, people of color have been the disproportionate victims of unjust surveillance; Hoover was no aberration. And while racism has played its ugly part, the justification for this monitoring was the same we hear today: national security.
[Alvaro Bedoya is the founding executive director of the Center on Privacy and Technology at Georgetown Law]
benton.org/headlines/color-surveillance | Slate
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CONTENT

FREEBEE
[SOURCE: The Verge, AUTHOR: Dan Seifert]
Verizon announced a new sponsored data program it is calling FreeBee, which will let brands and content makers provide video and other content to Verizon users without it counting against the users' data allowance. There are two versions of the FreeBee program — FreeBee 360 and FreeBee Data — but the differences between them amount to how they are billed to the content providers and the net result is the same for Verizon users. It will be available in a beta form starting Jan 19, with a greater rollout later in 2016. Brands that have already signed up for it include AOL (unsurprising, given that Verizon owns AOL), Hearst Magazines, and Gameday, which will provide sponsored content to 1,000 test subscribers. For Verizon customers, content that is part of the FreeBee program will have a literal "bee" icon on it, denoting that it will not count against their monthly data allotment. Brands will be able to sponsor some or all of the data used by their apps or websites.
benton.org/headlines/verizon-launches-its-own-sponsored-data-program | Verge, The
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SPONSORED DATA AND NET NEUTRALITY: WILL VERIZON FREEBEE AVOID PROBLEMS?
[SOURCE: telecompetitor, AUTHOR: Joan Engebretson]
Verizon announced a new sponsored data offering dubbed FreeBee that will enable wireless customers to view some mobile content without having it count against their monthly data allotments. Verizon FreeBee sounds a bit like the sort of offering network neutrality advocates hoped to prevent. But at the time Verizon announced its own Go90 content offering, a Verizon executive said the company also would offer a sponsored content option for the service and that it expected to avoid net neutrality issues by offering sponsorship options to other content providers as well. Verizon likely will argue that the service isn’t paid prioritization because it doesn’t involve traffic engineering in the network. And because Verizon is offering the service to Go90 competitors, the company likely expects to avoid running afoul of the net neutrality guideline that prevent carriers from favoring their own content offerings.
benton.org/headlines/sponsored-data-and-net-neutrality-will-verizon-freebee-avoid-problems | telecompetitor
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FIGHTING TERRORISM
[SOURCE: Morning Consult, AUTHOR: Amir Nasr]
President Obama’s new task force on terrorism and the Internet shows that the White House has identified social media as a crucial battlefront in its fight against the Islamic State. The Homeland Security, Justice and State departments say they will work together to stop terrorists’ use of the internet to “radicalize and mobilize recruits” all over the world. There are two ways to combat the presence of terrorism online: One is to pump the same social media channels that terrorists use with positive “counter-messaging” campaigns to crowd out radical views. The other is to monitor social media and report suspicious content that law enforcement can then track. Neither of these options is proven to hinder online radicalization, which means that much of what the task force will be doing is experimental. Outsiders who are watching these activities say the task force seems more engaged in counter-messaging than in monitoring. This could be because monitoring is tough to do without treading on individual rights and tech businesses models.
benton.org/headlines/fighting-terrorism-facebook-isnt-easy | Morning Consult
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STORIES FROM ABROAD

FREE BASICS IN INDIA
[SOURCE: Revere Digital, AUTHOR: Kurt Wagner]
Facebook’s battle with Indian regulators is turning into a public ‘he said, she said’ debate as the two sides continue to fight over Facebook’s Free Basics app, the social network’s effort to bring free Internet services — including Facebook — to emerging markets. A new letter published online by the Telecom Regulatory Authority of India showcases a number of accusations between the two sides in which the only thing that seems clear is that the entire situation is pretty murky. The tl;dr version: Facebook is trying to recruit users to support its Free Basics app, which is under fire from Indian regulators. These regulators argue that Facebook isn’t sharing all the necessary info with said users in order to ensure they know what they’re arguing for. And Facebook claims regulators are blocking emails of support from its user base. The longer, more detailed version: TRAI is in the process of collecting public opinion on how the country should regulate zero-rating services like Free Basics. It claims that Facebook, which has been encouraging its users in India to support Free Basics by emailing TRAI from their Facebook accounts, failed to give users the appropriate consultation paper it released and asked people to respond to. In other words, TRAI claims Facebook isn’t sharing the relevant material with people its recruiting to fight for its app. On the other side, Facebook is accusing TRAI of “unsubscribing” to emails from Facebook users trying to support Free Basics, thus blocking their effort to support Facebook’s app.
benton.org/headlines/facebooks-regulatory-battle-over-free-basics-india-getting-feisty | Revere Digital
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