January 2011

Cantwell: Net Neutrality Essential to Promoting Innovation and Protecting Businesses and Consumers

Sen Maria Cantwell (D-WA) introduced the Internet Freedom, Broadband Promotion, and Consumer Protection Act of 2011 to ensure the broadband Internet continues to serve as a source of innovation, free speech, and job growth. Though Cantwell believes that the Federal Communications Commission’s (FCC) acted within its authority to issue its own network neutrality rules last December, she stated at the time that they were not strong enough to ensure the Internet remains a source of innovation and economic growth. Sen Al Franken (D-MN) is an original cosponsor of the Internet Freedom, Broadband Promotion, and Consumer Protection Act.

The Internet Freedom, Broadband Promotion, and Consumer Protection Act creates a new section in Title II of the Communications Act by codifying the six net neutrality principles in the FCC’s November 2009 Notice of Proposed Rule Making for preserving the open Internet. Additionally, the legislation prohibits broadband operators from requiring content, service, or application providers from paying for prioritized delivery of their Internet Protocol (IP) packets, also known as pay-for priority. The bill also calls for broadband providers to work with local, middle-mile providers on fair and reasonable terms and network management conditions. All of these obligations apply to all broadband Internet platforms, both wireline and wireless.

Cantwell’s legislation also takes several steps to promote the adoption of broadband, such as requiring broadband providers to provide service to an end user upon reasonable request and requiring broadband providers to offer standalone broadband Internet access at reasonable rates, terms, and conditions. The bill also tells the FCC that if it extends the Universal Service Fund (USF) to include broadband access, only those broadband providers offering standalone broadband Internet access service will be able to participate in the new broadband fund. This legislation further increases consumer protection by requiring all charges, practices, classifications, and regulations related to broadband Internet access service meet a public interest “just and reasonable” standard.

Currently, broadband Internet access falls under Title I of the Communications Act, making it unclear what protections consumers have. Cantwell’s legislation allows broadband service users who believe their broadband provider has violated their net neutrality obligations to file a complaint at either the FCC or a U.S. District Court (but not both). Additionally, State Attorneys General can file on behalf of its residents and seek either to enforce the act or to seek civil penalties.

Rockefeller Reintroduces Public Safety Spectrum and Wireless Innovation Act

Chairman John D. (Jay) Rockefeller IV reintroduced the Public Safety Spectrum and Wireless Innovation Act, a bill to promote smart and efficient use of the nation’s radio airwaves and provide first responders and public safety officials with additional wireless resources to keep America safe. The legislation is cosponsored by Senators Bill Nelson (D-FL), Frank Lautenberg (D-NJ), Amy Klobuchar (D-MN), Tom Harkin (D-Iowa), and Benjamin Cardin (D-MD).

Key provisions of the bill:

Establish a framework for the deployment of a nationwide, interoperable, wireless broadband network for public safety;
Allocate 10 megahertz of spectrum, known as the “D-block,” to public safety;
Direct the Federal Communications Commission (FCC) to develop technical and operational standards to ensure nationwide interoperability and build-out (including in rural areas);
Direct the FCC to establish standards that allow public safety officials, when not using the network, to lease capacity on a secondary, but preemptible basis to non-public safety entities, including other governmental and commercial users; and
Provide the FCC with incentive auction authority, which allows existing spectrum licensees to voluntarily relinquish their airwaves in exchange for a portion of the proceeds of the commercial auction of their spectrum. This provides new incentives for efficient use of spectrum. In addition, the funds from these incentive auctions, in conjunction with funds from the auction of other specified spectrum bands, and funds earned from leasing the public safety network on a secondary basis, will be used to fund the construction and maintenance of the nationwide, interoperable, wireless broadband public safety network.

FCC Has Another USF Directive for USAC

Federal Communications Commission Managing Director has written Scott Barash, the CEO of the Universal Service Administrative Company (USAC) directing USAC to take steps to implement the recommendations in the October 2010 U.S. Government Accountability Office Report, entitled, "Telecommunications: Improved Management Can Enhance FCC Decision Making for the Universal Service Fund Low-Income Program."

The FCC instructs USAC to work with FCC in examining, through an independent and objective consultant, the following areas to identify potential risks to achievement of these objectives:

ETCs' initial certification and subsequent verification of customer eligibility to participate in the low-income program;
Preventing resellers and wholesellers from seeking reimbursement under the low-income program for the same connection and ensuring only one Lifeline discount is provided per household;
Reviewing USAC's organizational structure and organizational culture; policies, procedures, and mechanisms; and internal information and communication flow, including training provided to USAC employees and its subcontractors designed to ensure they are providing the correct information to ETCs or other parties; information and communications flow between USAC employees (and its subcontractors) and ETCs or other parties, including ETC or service provider training;
Evaluating how discrete ETC audit findings, and any recurring audit findings should be considered in developing internal controls; and
The ability of USAC and its databases and software to conduct data processing, including complex analysis of consumer and ETC information.

Start-Up Opens a One-Stop Shop for the News

Big media companies and tech start-ups alike are trying to solve the riddle of how people will read the news in a mobile, digital world — and how publishers will make money from it. The latest to try is Ongo, a two-year-old start-up that will introduce its Web site, with an iPad app to follow.

Ongo is backed by three major media companies: The Washington Post Company, The New York Times Company and Gannett, which publishes USA Today. Each has invested $4 million. Ongo is for readers who peruse a variety of publications every day and want to read them all in one place. It shows articles from about 20 publications, and is in talks with dozens more. The catch: Readers pay $6.99 a month for the service, while most of the Web sites whose articles it shows are free. In exchange, readers see no ads or cluttered pages, and can search for articles, save them and share them with friends — all from one site. Mathew Ingram writes, "Although it has some interesting features aimed at compensating readers for sharing content, Ongo seems like yet another Hail Mary pass aimed at trying to rewind the clock and impose scarcity on media content, and one that will likely fail just as quickly as others have."

Google going on hiring binge in 2011

Google is planning to hire more than 6,000 new workers in 2011 and will grow to more than 30,000 employees by the beginning of 2012.

The bold plan shows that Google is bullish about its chances as it engages in fierce competition with Silicon Valley giants such as Apple and with upstarts such as Facebook for fast-growing new areas such as mobile and social networking beyond its core business of search. Hiring will be spread across the new initiatives. Many of the jobs will be at the company’s headquarters in Mountain View (CA); 1,000 workers will be added in Europe. Google added 4,565 workers in 2010, a 23% jump and the largest since its hiring binge in 2007, when it added 6,100 workers. So analysts were not surprised that Google planned on pumping up hiring in 2011.

Chairman Smith: Companies must save private data to combat child porn

House Judiciary Chairman Lamar Smith (R-TX) says new laws are needed that would force companies to save private data in order to help law enforcement combat child pornography.

In the last Congress, he introduced a bill requiring Internet access providers do so for two years. "It ensures that the online footprints of predators are not erased," he said. According to Chairman Smith, child pornography was nearly eradicated in the 1980s, but has seen an enormous resurgence since the rise of the Internet.

Staff Changes for FCC's Baker

Federal Communications Commission member Meredith Attwell Baker announced that Jennifer Tatel has joined her staff as Legal Advisor for media issues.

Tatel most recently served as Chief of the Media Bureau's Industry Analysis Division. Prior to that, she was an attorney at Sidley Austin LLP, working in the firm's Communications and Privacy, Data Security and Information Law practice groups. Prior to attending law school, Tatel worked as a social worker for the District of Columbia's Child & Family Services Agency. She received her B.S. in Psychology from the University of Illinois, her M.S. in Social Work from Columbia University, and her J.D. from George Washington University Law School.

Krista Witanowski returns to her position as Legal Advisor in the Media Bureau.

Sirius asks FCC to end Price Caps

The Federal Communications Commission's Media Bureau seeks comment on whether to extend, modify, or remove the price cap imposed by the FCC when it approved the applications of Sirius Satellite Radio and XM Satellite Radio Holdings to transfer control of the licenses and authorizations they held for the provision of satellite digital audio radio service (or "SDARS") in the United States. The grant of these applications authorized the merger of Sirius and XM subject to voluntary commitments made by Sirius and XM, as well as other conditions. Sirius XM requests that the FCC allow the price cap to expire at the end of three years. The FCC seeks comment on Sirius XM's view that the price cap condition is no longer necessary.

FCC Takes Action to Advance Nationwide, Interoperable Broadband Communications for America's First Responders

The Federal Communications Commission adopted a Third Report and Order (Order) and Fourth Further Notice of Proposed Rulemaking (FNPRM) that will advance communications interoperability for our Nation's first responders. The rules adopted and proposed in today's Order and FNPRM support the build out of robust, dedicated and secure mobile broadband networks that will enable public safety broadband users to share information, videos, photos and emails across departments and jurisdictions nationwide for day-to-day operations and during large-scale emergencies.

The Order and FNPRM requires all 700 MHz public safety mobile broadband networks to use a common air interface, specifically Long Term Evolution (LTE), to support roaming and interoperable communications and seeks comment on additional rules to enable nationwide interoperability. The FCC's actions build on the technical requirements that state and local 700 MHz broadband waiver recipients are already subject to in the early buildout of their regional public safety broadband networks.

The FNPRM seeks public comment on, among other things:

The architectural vision of the network;
The effectiveness of open standards;
Interconnectivity between networks;
Network robustness and resiliency;
Security and encryption;Coverage and coverage reliability requirements;
Roaming and priority access between public safety broadband networks; and
Interference coordination and protection.

FCC's McDowell wants D Block auction 'sooner rather than later'

Federal Communications Commission member Robert McDowell expressed support for a D Block auction, which would sell off a valuable chunk of spectrum to commercial providers in order to fund a mobile broadband network for public safety officials.

The D Block auction proposal, also endorsed by the chairman's office, is a contentious issue on Capitol Hill where some members of Congress, including Senate Commerce Chairman Jay Rockefeller (D-WV) would prefer to devote the block to public safety purposes only -- a more costly route compared to the auction. Commissioner McDowell said at the FCC's monthly meeting that "in a perfect world" the D Block auction plan would already be moving along. "Perhaps we would have already concluded an auction of this spectrum, and public safety entities would be in a position to elect to partner with these auction winners," he said. "I am eager to move to this step, which I urge that we undertake sooner rather than later."

Benton

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