Daily Digest 7/31/2018 (State of Broadband Competition)

Benton Foundation
Table of Contents

Broadband/Internet

FCC Seeks Comment on the State of Fixed Broadband Competition  |  Read below  |  Public Notice  |  Federal Communications Commission
What happens to Spectrum cable customers if Charter gets kicked out of New York?  |  Read below  |  Christopher Zara  |  Fast Company
FCC Seeks Comment on E-Rate Eligible Services List for FY 2019  |  Federal Communications Commission
Cable operator Midco is getting into the fixed wireless game  |  Fierce
Paid Prioritization: Why We Should Stop Worrying and Enjoy the “Fast Lane”  |  Read below  |  Doug Brake  |  Analysis  |  Information Technology and Innovation Foundation
Innovation, Reliability, Connectivity Drive Broadband  |  Multichannel News

Wireless/Spectrum

Is wireless competitive? AT&T, Verizon say yes—but others disagree  |  Read below  |  Mike Dano  |  Fierce
T-Mobile and Sprint: How Fewer Competitors Could Increase Competition  |  Read below  |  Andrew Ross Sorkin  |  Analysis  |  New York Times
What people are telling the FCC about the Sprint/T-Mobile merger  |  Fierce
Roslyn Layton: The FCC’s mid-band spectrum strategy falls into place not a moment too soon  |  American Enterprise Institute
T-Mobile, Nokia Teaming up on $3.5 Billion 5G Equipment Deal  |  Summary at Benton.org  |  Phil Britt  |  telecompetitor

Television

Linear TV Dominates Time Spent Watching Video: Nielsen  |  Broadcasting&Cable
No Shortage of Ways to Bring TV Prices Down  |  Read below  |  John Bergmayer  |  Analysis  |  Public Knowledge
Video’s Not Dead, It’s Just Riding on Broadband  |  Multichannel News
PBS President Paula Kerger Calls for More Women in Leadership Roles at Media Companies  |  Wrap, The

Privacy

What Would Real Platform CPNI Look Like?  |  Read below  |  Harold Feld  |  Analysis  |  Public Knowledge
Keep It: Maintaining Competition in the Privacy Debate  |  Read below  |  FTC Commissioner Noah Joshua Phillips  |  Speech  |  Federal Trade Commission
Jack Karsten: How should the US legislate data privacy?  |  Brookings
Case Study of Google Serial Over-collection of Private Data for FTC Hearings  |  Scott Cleland

Ownership

20 ways Democrats could crack down on Big Tech  |  Read below  |  David McCabe  |  Axios

Journalism

News From Your Neighborhood, Brought to You by the State of New Jersey  |  Read below  |  Rick Rojas  |  New York Times
Why your city government should buy your local newspaper  |  Read below  |  Ryan Cooper  |  Week, The
Newsroom employment dropped nearly a quarter in less than 10 years, with greatest decline at newspapers  |  Pew Research Center
People Trust Human Journalists Over Algorithms  |  University of Florida

Elections

Despite Trump’s assurances, states struggling to protect 2020 election  |  Politico

Policymakers

Chairman Pai Announces New FCC Chief Economist  |  Read below  |  Press Release  |  Federal Communications Commission
Chairman Pai Announces New Chair and Vice Chair of Advisory Committee on Diversity and Digital Empowerment  |  Read below  |  Public Notice  |  Federal Communications Commission
PBS Names Multifaceted Television Executive Perry Simon as New Programming Chief  |  Public Broadcasting Service

Emergency Communications

Commissioner O'Rielly letter to Puerto Rico's CWA re 911 Fee Diversion  |  [Federal Communications Commission

Content

Study Uncovers Motivations for Social Media Campaigns Participation  |  University of Florida
Spotify faces backlash for hosting 'The Alex Jones Show' on music streaming service  |  USA Today
We Need Transparency in Algorithms, But Too Much Can Backfire  |  Harvard Business Review
Want to move your online data? New service could simplify the transfer to a rival site  |  USA Today

Company News

Les Moonves to Remain as CBS CEO Amid Sexual Misconduct Investigation, Board Says  |  Wrap, The
Google promoted its top lawyer, Kent Walker, to be senior vice president of global affairs  |  Hill, The
Charter to shut down Spectrum Deportes channel in Los Angeles  |  Los Angeles Times
Facebook’s Next Privacy Challenge: Less Data to Target Ads  |  Wall Street Journal
What's The Value Of An Engaged Consumer Minute? Turns Out It's $1.81  |  MediaPost

Stories From Abroad

Facebook Is Failing to Aid Inquiry Into ‘Fake News,’ British Lawmakers Say  |  New York Times
In Trump era, Disney-Fox deal still faces regulatory hurdle: China  |  Los Angeles Times
Today's Top Stories

Broadband/Internet

FCC Seeks Comment on the State of Fixed Broadband Competition

Public Notice  |  Federal Communications Commission

The Federal Communications Commission seeks information and data for the Commission’s analysis of fixed broadband competition as required by RAY BAUM’S Act of 2018. This Public Notice requests comment on the criteria or metrics that should be used to evaluate the state of fixed broadband competition. Comment and information also is sought on industry data, competitive dynamics, and trending factors in the industry, including but not limited to, subscribership numbers, financial indicators (such as revenues or profitability), investment, pricing, and network coverage. The FCC requests that commenters provide any other information that may inform the Commission’s analysis of the fixed broadband industry. The FCC also requests comment on whether laws, regulations, regulatory practices or demonstrated marketplace practices pose a barrier to competitive entry into the fixed broadband marketplace, or to the competitive expansion of existing providers. Further, information is sought on the extent to which any such laws, regulations or marketplace practices affect entry barriers for entrepreneurs and other small businesses in the fixed broadband marketplace.

Comments due August 17, 2018 [GN Docket No. 18-231]

What happens to Spectrum cable customers if Charter gets kicked out of New York?

Christopher Zara  |  Fast Company

The New York Public Service Commission's order to revoke it's approval for Charter's acquisition of Time Warner Cable envisions Charter coming up with a plan for its own replacement. The company has 60 days to file an action plan, telling the commission how, exactly, it will ensure a smooth transition to a successor provider or providers. In the meantime, Charter is required to to keep providing service and keep carrying its obligations under state law—all while ensuring that its existing customers experience no interruption in service during the transition. That’s a lot to ask of a company that, according to the commission’s own findings, has already failed so stupendously at doing what it’s supposed to do. PSC Chairman John Rhodes says Charter has shown “brazenly disrespectful behavior toward New York State and its customers,” and yet customers are now expected to trust that same company to oversee a smooth and orderly transition to a new provider?

Paid Prioritization: Why We Should Stop Worrying and Enjoy the “Fast Lane”

Doug Brake  |  Analysis  |  Information Technology and Innovation Foundation

Data traffic prioritization is one of the most unfairly maligned technologies. Caricaturing commonplace network management techniques as “fast lanes,” net neutrality activists warn that introducing the option of paying for specific performance levels of Internet traffic will destroy the characteristic “openness” of the web. This is false. Prioritization and other mechanisms that differentiate data traffic are the only economical ways to radically improve the performance of broadband given the wide diversity of different applications that broadband networks must support, and would encourage further innovation throughout the Internet. When it comes to discussions of potential net neutrality legislation, there is fairly widespread agreement on what the substance of rules should look like. There is rough consensus around blocking and throttling—namely, that baseline rules should flatly ban Internet Service Providers (ISPs) from blocking legal Internet traffic or slowing or throttling data to extract payment. But the rough consensus around substantive rules admittedly breaks down at paid prioritization.

Wireless

Is wireless competitive? AT&T, Verizon say yes—but others disagree

Mike Dano  |  Fierce

AT&T: “Competition has never been greater than it has been over the past two years, and as a result prices are at all-time lows, output is at all-time highs, and innovation, network quality and consumer satisfaction are at unprecedented levels.”

Verizon: “The evidence of a robustly competitive and innovative mobile wireless marketplace remains overwhelming and is only growing stronger."

But not everyone in the wireless industry is seeing the same picture.

Competitive Carriers Association: “As the mobile industry finds itself in the midst of a major technological transition to 5G, the fact remains that much of the country still lacks access to reliable mobile wireless service including 3G and 4G. In reality, the increasing concentration of the wireless market between the two largest providers—AT&T and Verizon—combined with existing regulatory barriers to wireless market expansion negatively impact competitive entry and competitive expansion, particularly in rural and remote areas.

T-Mobile and Sprint: How Fewer Competitors Could Increase Competition

Andrew Ross Sorkin  |  Analysis  |  New York Times

Poring through hundreds of pages of documents submitted to the government by T-Mobile and Sprint and transcripts of testimony in front of Congress makes it clear that going from four competitors to three — AT&T, Verizon and a combined T-Mobile-Sprint — wouldn’t pose the problems that so many fear.

Every textbook would say that fewer competitors results in high prices. But if the Sprint-T-Mobile deal was given the green light, it would almost empirically create, at least in the short term, more competition for AT&T and Verizon, not less.

The entire premise of the deal is that by merging, the two weakest companies in the sector would be able to build out a meaningful a 5G network, possibly even more quickly than AT&T and Verizon. If T-Mobile and Sprint built out that network, the only way to make the math of the deal work would be to steal customers from AT&T and Verizon. The combined company would need to take millions of customers away from the big players. The only way to do that: lower prices. That’s especially true now that companies like AT&T, thanks to its new Time Warner holdings, will be able to offer customers extra perks that customers of T-Mobile and Sprint won’t be able to get.

Television

No Shortage of Ways to Bring TV Prices Down

John Bergmayer  |  Analysis  |  Public Knowledge

The financial challenges YouTube TV and other “virtual cable” providers face is a good illustration of some points we’ve been making at Public Knowledge for a while. "These streaming services have yet to figure out how to make money. In fact, the more people they sign up, the more money they lose. That’s because the services are paying more for programming than what they’re charging consumers.” Why is this? Basically, the incentives of large content providers and big cable make offering viewers more choice very difficult. Large content providers bundle their programming together and require that cable companies put their channels—even the less popular ones—in lower tiers where they get more subscribers. This ends up costing viewers a lot, but cable companies themselves take a margin on this so they profit, too. It’s a symbiotic relationship. To keep it going, the largest cable companies, in turn, require that content providers (large and small) give them “most favored nation” status, meaning that new entrants can’t get better deals, both in terms of cost but also in terms of on-demand rights and so on. (Some programmers might want to give discounts to new entrants to create more competition.) Some of the large incumbent distributors, such as big cable companies, may also simply pay smaller programmers less, or just drop them, if they make their programming available online in any way.

If policymakers want to ensure that “skinny bundles,” more consumer choice including a la carte options, and other innovative services are available, they should consider changes to the policies that make competing in this space so difficult, and keep prices high even in traditional cable:

  • Eliminate basic tier buy-through rules
  • Program access for online service
  • Allow cable companies to carry signals from out-of-market broadcasters
  • Allow set-top box competition
  • Block mergers
  • Limit most-favored-nation clauses
  • À la carte (and pricing transparency)

[John Bergmayer is PK Senior Counsel]

Privacy

What Would Real Platform CPNI Look Like?

Harold Feld  |  Analysis  |  Public Knowledge

Customer proprietary network information (usually abbreviated as “CPNI”) refers to a very specific set of privacy regulations governing telecommunications providers (codified at 47 U.S.C. §222) and enforced by the Federal Communications Commission. But while CPNI provides some of the strongest consumer privacy protections in federal law, it also does much more than that. CPNI plays an important role in promoting competition for telecommunications services and for services that require access to the underlying telecommunications network -- such as alarm services. To be clear, CPNI is neither a replacement for general privacy nor a substitute for competition policy. Rather, these rules prohibit telecommunications providers from taking advantage of their position as a two-sided platform. As explained below, CPNI prevents telecommunications carriers from using data that customers and competitors must disclose to the carrier for the system to work.

All of which brings us to our first concrete regulatory proposal for digital platforms. The same concerns that prompted the FCC to invent CPNI rules in the 1980s and Congress to expand them in the 1990s apply to digital platforms today. First, because providers of potentially competing services must expose proprietary information to the platform for the service to work, platform operators can use their rivals’ proprietary information to offer competing services. If someone sells novelty toothbrushes through Amazon, Amazon can track if the product is selling well, and use that information to make its own competing toothbrushes. Second, the platform operator can compromise consumer privacy without access to the content of the communication by harvesting all sorts of information about the communication and the customer generally. 

Keep It: Maintaining Competition in the Privacy Debate

FTC Commissioner Noah Joshua Phillips  |  Speech  |  Federal Trade Commission

I want today to register my concern that laws and regulations intended to promote privacy may build protective moats around large companies (some of which already possess significant amounts of data about people) by making it more difficult for smaller companies to grow, for new companies to enter the market, and for innovation to occur—and insist that competition be part of our conversation about privacy. If our concern is warranted, the questions for proponents of new privacy rules then must include: Are we willing to allow a reduction in competition or innovation? What competitive price are we willing to pay for greater privacy protection? Are we willing, for instance, to allow the biggest technology companies—lately the focal points of discussion about both privacy and competition—to entrench further?

Ownership

20 ways Democrats could crack down on Big Tech

David McCabe  |  Axios

Sen. Mark Warner's office has laid out 20 different paths to address problems posed by Big Tech platforms — ranging from putting a price on individual users' data to funding media literacy programs. The proposal is a window t0 the options available to US policymakers concerned about disinformation and privacy. Enacting any of these plans is a long shot in the near-term, but a shift in party control of Congress come November could give them more momentum.

Journalism

News From Your Neighborhood, Brought to You by the State of New Jersey

Rick Rojas  |  New York Times

New Jersey's lawmakers have embarked on a novel experiment to address a local news crisis: putting up millions of dollars in the state’s most recent budget to pay for community journalism. While public television and radio stations have long received government funds, new media experts like Kelly McBride of the Poynter Institute say they have not heard of any other efforts on this scale, with a state helping to pay for reporting projects among a range of news media, including for-profit outlets. Journalists and public officials described New Jersey’s undertaking as once unthinkable, raising ethical concerns and stirring fears of government intrusion. Yet there has been little outcry, underscoring for many local journalism’s precarious position and a growing willingness to experiment.

Why your city government should buy your local newspaper

Ryan Cooper  |  Week, The

There is one way that cities could ensure at least a modicum of local reporting: Just set up their own municipally-owned papers. Journalism is not that expensive. Even small cities could easily muster up enough cash to get a municipal paper started. Here's how it could work: A municipality would set up a public journalism corporation operating on an independent, nonprofit basis, and seed it with some public revenue. On a steady financial footing — and not subject to the ludicrous profit demands of some hedge fund goon — they could build out or stabilize a basic reporting outfit. It'd be cheap, streamlined, and efficient. For obvious reasons of journalistic independence, we wouldn't want this under the direct management of the city government. Overall control could be in the hands of an independent board, perhaps half appointed by the government and half elected by the paper's employees; or perhaps elected by the general citizenry, or some other method. The point is that the city would own the paper, but not control it directly, to avoid the appearance (or reality) of political influence. Funding would be locked in over a long period, and the city government would be legally forbidden from pulling funding over unfavorable coverage. Ideally, revenues from subscriptions and advertising would cover ongoing expenses. 

Policymakers

Chairman Pai Announces New FCC Chief Economist

Press Release  |  Federal Communications Commission

Federal Communications Commission Chairman Ajit Pai announced the appointment of Babette Boliek as chief economist for the Federal Communications Commission. Dr. Boliek currently serves as a professor of law and the associate dean of faculty research at Pepperdine University School of Law. Dr. Boliek earned her doctorate in economics from the University of California, Davis, and her law degree from Columbia University School of Law. Currently, Dr. Boliek’s research at Pepperdine focuses on applied economic and legal analysis in the areas of Internet regulation, competition and antitrust, privacy, and the mobile telecommunications industry. Her teaching responsibilities have included antitrust law and policy, communications law, corporations, and contract law. Dr. Boliek has served as a fellow with the Information Economy Project at George Mason University’s Antonin Scalia Law School and with the Center for Communications Law and Policy at the Annenberg School for Communication at the University of Southern California. She also has been a visiting scholar at the American Enterprise Institute. She is expected to start her work at the FCC in August.

Chairman Pai Announces New Chair and Vice Chair of Advisory Committee on Diversity and Digital Empowerment

Public Notice  |  Federal Communications Commission

Federal Communications Commission Chairman Ajit Pai made three appointments to the Advisory Committee on Diversity and Digital Empowerment (ACDDE).

  1. Chairman Pai has appointed current ACDDE Vice Chair Diane Sutter, President, ShootingStar Broadcasting, to serve as the new Chair of the ACDDE. Ms. Sutter replaces Julia Johnson, President, NetCommunications, who has resigned from the ACDDE.
  2. Chairman Pai has appointed Anna Gomez, Partner, Wiley Rein LLP, as Vice Chair and full committee member of the ACDDE, building on her role as a member of the Digital Empowerment and Inclusion Working Group. Ms. Gomez previously served as Deputy Assistant Secretary for Communications and Information for the National Telecommunications and Information Administration of the U.S. Department of Commerce.
  3. Chairman Pai has appointed Susan Au Allen, a member of the Digital Empowerment and Inclusion Working Group, as a full member of the  ACDDE. Ms. Allen is President/CEO, U.S. Pan Asian American Chamber of Commerce. The Digital Empowerment and Inclusion Working Group examines issues surrounding access, adoption, and use of broadband and new technologies by underresourced communities.

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Benton (www.benton.org) provides the only free, reliable, and non-partisan daily digest that curates and distributes news related to universal broadband, while connecting communications, democracy, and public interest issues. Posted Monday through Friday, this service provides updates on important industry developments, policy issues, and other related news events. While the summaries are factually accurate, their sometimes informal tone may not always represent the tone of the original articles. Headlines are compiled by Kevin Taglang (headlines AT benton DOT org) and Robbie McBeath (rmcbeath AT benton DOT org) — we welcome your comments.


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