April 2013

The House approved cybersecurity legislation that sets up a framework for companies and the federal government to share information about threats. The Cyber Intelligence Sharing and Protection Act (CISPA), H.R. 624, was approved in a 288-127 vote despite ongoing fears from some lawmakers and privacy advocates that the measure could give the government access to private information about consumers.

Ninety-two Democrats voted with Republicans in favor of the bill and just 29 Republicans opposed it. The bill secured enough votes to override a veto. That's greater support than last year, when a similar bill passed 248-168 with the support of 42 Democrats. Twenty-eight Republicans opposed that bill. President Barack Obama has threatened to veto the House bill and Senate Democrats have not said whether they would consider the bill at all. In an effort to address fears about the sharing of information with the government, members agreed to a last-minute amendment that would make it more likely that companies would share threat data with the Homeland Security and Justice departments. It would establish that a center within the DHS has the federal hub for cyber threat information-sharing efforts, and designate the Justice Department as the hub for all cybercrime information. That amendment passed in a 409-5 vote; the "no" votes came from Republicans. Supporters stressed that this change would help ensure this data is run through civilian government agencies before going right to the military.

The Federal Communications Commission today announced that approximately 97 percent of wireless customers across the nation are now protected from bill shock as participating U.S. wireless companies have met an April 17 deadline to provide free, automatic alerts to customers who approach or exceed their wireless plan limits. A recent FCC survey found that 30 million Americans – or one in six wireless users – have experienced bill shock. As of the April 17, 2013 deadline, participating members of CTIA are voluntarily providing free, automatic usage-based alerts when they approach or exceed plan limits for data, voice, and text, or when international roaming charges may be applied.

As part of its ongoing regulatory reform efforts, the Federal Communications Commission streamlined its policies and procedures for reviewing foreign ownership of U.S. companies with common carrier wireless licenses and certain aeronautical radio licenses under sections 310(b)(3) and 310(b)(4) of the Communications Act.

Commission staff estimates these reforms will lower the number of section 310(b) petitions for declaratory ruling filed with the Commission annually by up to 70 percent. The changes will also reduce dramatically the number of hours that applicants and licensees spend in preparing and submitting required filings, while ensuring the Commission continues to receive the information it needs to fulfill its public interest obligations under section 310(b) of the Act. The reforms outlined in the Foreign Ownership Second Report and Order will reduce regulatory costs and burdens and provide greater transparency and predictability in foreign ownership filing requirements and the review process. Significantly, today’s action will facilitate investment in wireless networks – a critical component of the nation’s telecommunications infrastructure – while continuing to protect important interests related to national security, law enforcement, foreign policy, and trade policy.

Under the new rules and policies outlined in the Foreign Ownership Second Report and Order, the Commission will, among other things:

• Eliminate the distinction between foreign investment from WTO Member countries and non-WTO Member countries;
• Streamline the review of foreign investment by (1) requiring that petitioners identify only those foreign investors that would hold equity and/or voting interests of greater than five percent, and in certain situations greater than ten percent; (2) allowing petitioners to request specific approval for any named foreign investor (even those holding interests below these amounts) to increase its equity and/or voting interest at some future time; and (3) permitting petitioners, under section 310(b)(4), to request specific approval for any named foreign investor that proposes to acquire a controlling interest to increase the interest to 100 percent at some future time;
• Issue new declaratory rulings with a 100 percent aggregate allowance for unnamed and future foreign investors, provided that the licensee obtains approval before any foreign investor acquires an interest greater than five percent (or ten percent in certain situations);
• Allow the licensee’s “subsidiaries and affiliates” to rely on the licensee’s foreign ownership ruling rather than having to file a new petition for declaratory ruling, if the foreign ownership of the licensee and the subsidiary or affiliate are in compliance with the terms of the licensee’s ruling and Commission’s rules;
• Allow licensees to introduce new foreign-organized entities into the approved vertical ownership chain in certain cases without prior approval, provided that the new foreign-organized entity is under 100 percent common ownership and control with a previously-approved foreign investor; and
• Eliminate the practice of issuing service- and geographic specific rulings, and instead permit a licensee with a foreign ownership ruling to add new services and new geographic service areas without filing a new petition for declaratory ruling.

Federal Communications Commissioners Jessica Rosenworcel and Ajit Pai both called on the FCC to act on requests to update its foreign ownership rules as they apply to broadcast stations holdings. They were voting to "streamline the foreign ownership policies and procedures that apply to common carrier radio licensees and certain aeronautical radio licensees," but took the opportunity to put in a plug for action on an outstanding request by broadcasters that the FCC move from a fixed 25% cap on foreign ownership to a case-by-case review. Both commissioners said they hoped the commission would act swiftly after receiving the last of its comments on the request by the Coalition for Broadcast Investment, which includes CBS, Clear Channel, Hearst, Ion, Sinclair and many others.