June 30, 2017 (GAO Lifeline Report)

GAO LIFELINE REPORT

GAO LIFELINE REPORT
[SOURCE: Government Accountability Office, AUTHOR: Seto Bagdoyan]
The Federal Communications Commission has not evaluated the Lifeline program’s performance in meeting its goals of increasing telephone and broadband subscribership among low-income households, but has recently taken steps to do so. Lifeline participation rates are low compared to the percentage of low-income households that pay for telephone service, and broadband adoption rates have increased for the low-income population even without a Lifeline subsidy. Without an evaluation, which GAO recommended in March 2015, FCC is limited in its ability to demonstrate whether Lifeline is efficiently and effectively meeting its program goals. In a July 2016 Order, FCC announced plans for an independent third party to evaluate Lifeline design, function, and administration by December 2020. FCC and the Universal Service Administrative Company (USAC)—the not-for-profit organization that administers Lifeline—have taken some steps to enhance controls over finances and subscriber enrollment. Nevertheless, GAO found weaknesses in several areas. GAO makes seven recommendations, which FCC generally agreed with:
require Commissioners to review and approve, as appropriate, spending above the budget in a timely manner;
maintain and disseminate an updated list of state eligibility databases available to Lifeline providers that includes the qualifying programs those databases access to confirm eligibility; this step would help ensure Lifeline providers are aware of state eligibility databases and could also help ensure USAC audits of Lifeline providers can verify that available state databases are being utilized to verify subscriber eligibility;
establish time frames to evaluate compliance plans and develop instructions with criteria for FCC reviewers how to evaluate these plans to meet Lifeline’s program goals;
develop an enforcement strategy that details what violations lead to penalties and apply this as consistently as possible to all Lifeline providers to ensure consistent enforcement of program violations; the strategy should include a rationale and method for resource prioritization to help maximize the effectiveness of enforcement activities;
ensure that the preliminary plans to transfer the USF funds from the private bank to the U.S. Treasury are finalized and implemented as expeditiously as possible;
require a review of customer bills as part of the contribution audit to include an assessment of whether the charges, including USF fees, meet FCC Truth-in-Billing rules with regard to labeling, so customer bills are transparent, and appropriately labeled and described, to help consumers detect and prevent unauthorized charges; and
respond to USAC requests for guidance and address pending requests concerning USF contribution requirements to ensure the contribution factor is based on complete information and that USF pass-through charges are equitable.
benton.org/headlines/additional-action-needed-address-significant-risks-fccs-lifeline-program | Government Accountability Office | Sen McCaskill | The Hill | B&C | Washington Post
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PAI STATEMENT ON GAO LIFELINE REPORT
[SOURCE: Federal Communications Commission, AUTHOR: Press release]
The Government Accountability Office (GAO) released a report finding that deceased individuals had enrolled in the program and noting that GAO could not confirm the eligibility of 36 percent of the subscribers it reviewed. Federal Communications Commission Chairman Ajit Pai issued the following statement in response: “Last year, I led an investigation into the Lifeline program that revealed serious weaknesses in federal safeguards. Today’s GAO report confirms what we discovered then: Waste, fraud, and abuse are all too prevalent in the program. Commission staff and the Office of Inspector General have already been developing recommendations to better safeguard taxpayer funds. I stand ready to work with my colleagues to crack down on the unscrupulous providers that abuse the program so that the dollars we spend support affordable, high-speed broadband Internet access for our nation’s poorest families"
benton.org/headlines/statement-fcc-chairman-ajit-pai-gao-report-finding-significant-risks-fccs-lifeline-program | Federal Communications Commission
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BENTON SUPPORTS LIFELINE PROGRAM
[SOURCE: Benton Foundation, AUTHOR: Adrianne Furniss]
Although there has been great progress extending broadband’s reach to more and more Americans, there remain too many households and communities that are not enjoying the benefits of broadband. Research shows, for example, that families earning under $25,000 a year are about half as likely to have the Internet at home as families that are the most well-off. The Federal Communications Commission’s Lifeline program brings the many benefits of reliable, robust Internet access to low-income households. That means better access to job listings and workforce training, to education and healthcare, and allows people to fully engage in today’s society. In 2016, the FCC outlined plans for a Lifeline National Eligibility Verifier that would relieve from carriers the responsibility of checking on households’ Lifeline eligibility. We urge the FCC to move swiftly to implement those plans and ensure the program’s financial health.
benton.org/headlines/benton-supports-lifeline-program | Benton Foundation
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COMMUNICATIONS & DEMOCRACY

TRUMP LASHES OUT AT TV HOSTS ON TWITTER
[SOURCE: Washington Post, AUTHOR: Jenna Johnson]
President Donald Trump lashed out at the hosts of MSNBC's “Morning Joe” in two vicious tweets on the morning of June 29, calling Mika Brzezinski “low I.Q. Crazy” and claiming that she had a facelift late in 2016. President Trump also called Joe Scarborough “Psycho Joe” and said the hosts came to Mar-a-Lago — his private club in Palm Beach (FL) — three nights in a row around New Year's Eve “and insisted on joining me.” He claimed that Brzezinski “was bleeding badly from a facelift” at the time and that: “I said no!” Brzezinski and Scarborough were both spotted at Trump's New Year's Eve party, according to pool reports at the time, prompting Scarborough to fire off numerous tweets defending his presence there. At the time, Scarborough said that he and Brzezinski were at the party to set up an interview with the president-elect. At least three GOP senators on Twitter assailed President Trump's attack, saying the insults were "beneath the dignity" of the office of the president. Sens Lindsey Graham (R-SC), Ben Sasse (R-NE) and Susan Collins (R-ME) joined a loud chorus on social media denouncing the president's latest tweets.
benton.org/headlines/president-trump-angrily-lashes-out-morning-joe-hosts-twitter | Washington Post | The Hill
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INTERNET/BROADBAND

MUNICIPAL BROADBAND REPORT
[SOURCE: Brookings, AUTHOR: Blair Levin]
[Commentary] What is the role of cities in assuring that their residents have the affordable bandwidth necessary to thrive in the 21st century information economy? Municipal governments—more than other jurisdictions—will directly affect the cost of deploying fiber, the foundation for the abundant bandwidth that will serve next generation networks like 5G Mobile and the Internet of Things. Yet with a huge range of choices on how to influence their local broadband market, governments can struggle to understand how best to proceed. Into that breach arrives a new report entitled “Municipal Fiber in the United States: An Empirical Assessment of Financial Performance” by Christopher S. Yoo and Timothy Pfenninger of the University of Pennsylvania. Its stated purpose is to help municipalities by filling an “information gap by conducting a systematic analysis of every municipal fiber project in the United States.” Critically, the report concludes that the projects are money losers. I’m certain the report will provide sound bites for opponents of such projects. Unfortunately, for municipal leaders seeking a map for the path forward, it is both largely irrelevant and misleading. It’s a shame that the authors narrowly focused their gaze on Excel spreadsheets while ignoring how markets and communities are responding to the need for more abundant bandwidth. The report’s core message—which can be summarized as ‘let them eat DSL’—is one that does not deserve serious attention from cities.
benton.org/headlines/new-report-swings-and-misses-communities-and-next-generation-broadband | Brookings
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WIRELESS/SPECTRUM

TMOBILE JOINS WITH PUBLIC TV IN REPACK
[SOURCE: TVNewsCheck AUTHOR: Mark Miller]
PBS, in coordination with America’s Public Television Stations (APTS), announced an agreement with T-Mobile to deliver universal service of both broadcast and wireless service to millions of Americans living in rural areas. T-Mobile has committed to covering the costs for local public television low-power facilities that are required to relocate to new broadcasting frequencies following the government’s recent spectrum incentive auction. They said the project will also result in increased wireless choice in these underserved areas as T-Mobile leverages the new spectrum that the company acquired in the auction to expand its wireless network. “Public broadcasting has been one of America’s greatest and most enduring public-private partnerships,” said PBS President and CEO Paula Kerger. “We are thrilled that T-Mobile sees the value that public broadcasting brings to the American people and is helping to ensure that everyone—regardless of income or zip code—continues to have access to PBS, including vital emergency alerts and programs that help prepare children for success in school.”
benton.org/headlines/t-mobile-joins-public-tv-repack | TVNewsCheck | PBS
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VERIZON WANTS TO BORROW TMOBILE AND VODAFONE CONSUMER DATA
[SOURCE: Business Insider, AUTHOR: Mike Shields]
Verizon Communications wants to challenge Google and Facebook. So it's reaching out to some of its biggest rivals in the wireless industry for help. Now that the telecommunications company has completed its acquisition of Yahoo and rolled out Oath, a division which includes a wide collection of digital advertising assets, it is looking to ramp up its ability to challenge Google and Facebook in the sector. The wireless giant is exploring building a data partnership with other top wireless players, including T-Mobile, Sprint, Vodafone and Telefónica, apparently. Specifically, Verizon wants to pool together more wireless consumer data that can be used for ad targeting. A big reason Google and Facebook are so dominant in digital advertising – besides the fact that their platforms reach huge audiences –is that they have powerful, accurate data sets on millions of consumers that can be used by advertisers to target people with more relevant ads.
benton.org/headlines/verizon-wants-borrow-t-mobile-and-vodafones-consumer-data-take-facebook-and-google | Business Insider
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SECURITY/PRIVACY

PRIVACY LEGISLATION FALLS SHORT
[SOURCE: Public Knowledge, AUTHOR: Yosef Getachew]
Ever since Congress repealed the Federal Communication Commission’s broadband privacy rules, consumers have expressed outrage over their lack of privacy protections when accessing broadband networks. In response to the public outcry, members of Congress have introduced legislation to enhance consumers’ online privacy protections. Thus far, Sens Ed Markey (D-MA), Richard Blumenthal (D-CT), and Reps Jerry McNerney (D-CA), and Marsha Blackburn (R-TN) have all introduced online privacy legislation. Each bill has strong components that provide various levels of online privacy protections for consumers. However, the three bills all have limitations that must be addressed to provide Americans all the privacy protections they deserve. Fortunately, the bills at least open the door to a discussion on what true comprehensive online privacy legislation should look like and what protections consumers expect when it comes to their online privacy.
benton.org/headlines/privacy-legislation-falls-short-providing-consumers-comprehensive-online-privacy | Public Knowledge
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JOURNALISM

FEWER THINK NEWS MEDIA IS BIASED, SURVEY FINDS
[SOURCE: USAToday, AUTHOR: Mike Snider]
More than half of Americans think the US media reports news with a bias. The good news? The press gets a better grade today than in recent years, according to a new survey. The 20th annual State of the First Amendment survey, out from The First Amendment Center at the Newseum Institute in Washington (DC), found 57% of Americans who participated in the survey said that the news media reports with bias. Even at a time when the Trump Administration is clashing with the mainstream media, this response is better than in 2016 when 77% of Americans said the media was biased. A similar response was found in 2015, when 76% answered that way. Respondents thought more favorably of the press in 2013 and 2014, when 54% and 59% said they thought the media was biased Perhaps fueling the lack of trust in the media is the vacuum in which many people get their news. More than half (53%) of the 1,009 adults, surveyed in May 2017, said they preferred to get news from outlets aligned with their political views. The center's executive director Lata Nott called that finding "both obvious and disheartening" and "one of the factors that keeps us so divided," in an essay accompanying the report.
benton.org/headlines/fewer-think-news-media-biased-survey-finds | USAToday
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POLICYMAKERS

CRUZ DELAYS REDL’S COMMERCE COMMITTEE VOTE
[SOURCE: Politico, AUTHOR: Li Zhou]
Sen Ted Cruz (R-TX) is slowing down the Senate Commerce Committee vote on National Telecommunications and Information Administration nominee David Redl, apparently because the senator is seeking assurances related to the Internet Assigned Numbers Authority (IANA) transition that took place in 2016. While the transition itself has already happened, Sen Cruz continues to have questions about NTIA’s approach to internet governance. Redl fielded a series of queries from Sen Cruz on this very issue during his confirmation hearing, and noted that it’s “difficult to put the genie back in the bottle,” when asked if he thought the transition had been “wise and prudent.” Redl had his confirmation hearing alongside National Transportation Safety Board nominee Robert Sumwalt and Department of Transportation nominee Derek Kan, both of whom are slated for a vote during the Commerce Committee markup June 29. Redl’s vote is now slated for July, according to an aide for the committee. Cruz’s office declined to comment on the matter.
benton.org/headlines/sen-cruz-delays-redls-ntia-confirmation-vote | Politico
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June 30, 2017 (GAO Lifeline Report)