April 2013

CBO Scores CISPA

The Cyber Intelligence Sharing and Protection Act (H.R. 624) would amend the National Security Act of 1947 to require the Director of National Intelligence (DNI) to establish procedures to promote the sharing of information about cyber threats between intelligence agencies and the private sector. The DNI also would be directed to establish guidelines for granting security clearances to employees of the private-sector entities with which the government shares such information. CBO estimates that implementing the bill would have a discretionary cost of $20 million over the 2014-2018 period, assuming appropriation of the necessary amounts. Enacting H.R. 624 could affect direct spending or revenues; therefore, pay-as-you-go procedures apply. However, CBO estimates that those effects would be insignificant for each year.

The bill would impose intergovernmental and private-sector mandates, as defined in the Unfunded Mandates Reform Act (UMRA), by extending civil and criminal liability protection to entities and cybersecurity providers that share or use cyber threat information. The bill also would impose additional intergovernmental mandates on state governments by preempting state disclosure and liability laws. Because of uncertainty about the number of cases that would be limited and any forgone compensation that would result from compensatory damages, CBO cannot determine whether the costs of the mandate would exceed the annual threshold established in UMRA for private-sector mandates ($150 million in 2013, adjusted annually for inflation). However, CBO estimates that the aggregate costs of the mandates on public entities would fall below the threshold for intergovernmental mandates ($75 million in 2013, adjusted annually for inflation).

House Intelligence Committee Dems push for privacy changes in CISPA

A group of Democrats on the House Intelligence Committee are disappointed that a pair of privacy-focused amendments were not adopted into a controversial cybersecurity bill this week.

In an addendum filed to the committee report on the measure, four Democratic committee members said they support the aim of the Cyber Intelligence Sharing and Protection Act (CISPA). But they expressed concern it provides broad liability protection to businesses and believe it should require them to remove personal information from cyber threat data prior to sharing it with the government and other companies. Reps. Adam Schiff (D-CA), Jan Schakowsky (D-IL), Luis Gutiérrez (D-IL) and Jim Himes (D-CT) signed the document. "We support the intent of the Cyber Intelligence Sharing and Protection Act, but we are disappointed in some aspects of it and believe that it can be improved to better protect privacy and civil liberties, while still working effectively to enhance cybersecurity," the four lawmakers write.

FCC Grants B-Block Build-Out Extension but Not for Everyone

Two months after giving holders of 700 MHz A-block spectrum more time to build out their networks, the Federal Communications Commission granted an extension for 700 MHz B-block licensees as well. Both types of licensees now could have until at least December to complete construction to at least 35% of their coverage area. The B-block deadline extension does not apply to carriers that already have filed construction notices for any of their B-block holdings, which would include U.S. Cellular and some other carriers. It also may not apply to larger carriers that have resisted efforts to increase interoperability in the lower 700 MHz band.

Dish Is Said to Approach Deutsche Telekom About T-Mobile Bid

Dish Network Chairman Charlie Ergen informally approached Deutsche Telekom AG about a possible merger with the German company’s T-Mobile USA unit, a deal that would let him bundle wireless service with his satellite-TV offerings, according to people close to the situation.

Dish made the proposal sometime before April 10, when Deutsche Telekom announced a sweetened bid for MetroPCS Communications, according to the people. Deutsche Telekom might consider Dish’s proposal, though only after the transaction with MetroPCS closes and after verifying that a separate deal with Sprint Nextel isn’t feasible, said the people, who asked not to be named because the talks are private.

Clearwire Board Reviews Unsolicited Offer for Airwave Licenses

Clearwire’s board is reviewing an unsolicited offer to acquire its licenses to provide wireless Internet access, presenting a new wrinkle as shareholders consider a takeover offer from Sprint Nextel.

Clearwire received the proposal for its airwave permits in large markets on April 8 from an unnamed “strategic buyer,” it said yesterday in a regulatory filing. The party offered $1 billion to $1.5 billion, minus the present value of the leases, “which could be substantial,” Clearwire said. Sprint, which owns a slight majority of Bellevue, Washington-based Clearwire’s shares, is seeking to gain those same airwave licenses by buying out other investors for $2.97 a share. Dish Network has presented a competing bid for $3.30 a share. “This might provide some competition for Dish,” said Walt Piecyk, an analyst at BTIG LLC in New York.

Verizon kills early upgrade program, even for some current customers

Verizon's handset upgrade discounts for customers in a two-year contract will now only be available after the two years are up, rather than after 20 months, the carrier announced. In addition, any "New Every Two" credits that customers may have built up will expire in three days. Customers with Verizon were formerly able to start looking for and purchasing new phones at new contract prices a few months before their contracts were up. On the downside, customers had to begin new contracts early, but it also meant they had quicker access to newer phones. Starting with customers whose contracts end a little less than a year from now (January 1, 2014), customers will have to wait out the full two years before they can get the new-contract prices on phone upgrades. Customers whose contracts end before that will still be able to get their early upgrades.

Broadcasters may turn to Congress for help in bid to kill Web TV service

Television broadcasters are considering whether to ask for help from lawmakers in their bid to shut down Internet video service Aereo.

"We're just beginning to explore all of our options," one broadcasting industry representative who requested anonymity said. "Certainly, legislation and [Federal Communications Commission] action are something we're looking at." "We need a dual-revenue stream," the broadcasting official said. "We can't afford to put quality content on the air with [only advertising revenue]." Asked about the Aereo battle, Senate Commerce Committee Chairman Jay Rockefeller (D-WV) and Rep. Henry Waxman (D-CA), the ranking member of the House Commerce Committee, said that they are watching the issue carefully, but declined to weigh in on either side. Chairman Rockefeller expressed doubt about the seriousness of the networks' threat to go off the air. "Companies play games with each other—sometimes seriously, sometimes not seriously," he said.

How Stations Can Kill Aero and AutoHop

[Commentary] Broadcasters have an alternative to converting over-the-air networks to cable channels to thwart Barry Diller's Aereo and Charlie Ergen's AutoHop Dish DVR: the "Dual Stream Strategy."

Each TV station would feed a new, modified visual format of programming to their transmitters for over-the-air reception. This would consist of a station’s programming lineup in a reduced-size video window, surrounded by continuous weather, news and community information graphics and visual ads. The second stream would consist of the core programming full-screen, just as it is now, for pay-TV operators with retransmission deals.

[Spieckerman is CEO of SpieckermanMedia LLC, a Dallas-based strategic communications consultancy and cable television network company]

FCC and State Department Discussion Incentive Auction Boarder Issues

The Federal Communications Commission and the U.S. Department of State, under the auspices of the U.S.-Canada Radio Technical Liaison Committee (RTLC) and U.S.-Mexico High Level Consultative Commission on Telecommunications (HLCC), have been engaged in on-going discussions with their counterparts in the Canadian and Mexican telecommunications authorities relating to the Commission’s planned 2014 Broadcast Television Incentive Auction.

As is typical of open spectrum proceedings with cross-border implications, the United States and its Canadian and Mexican counterparts have established government-to-government working arrangements that have been operating to help ensure optimal outcomes for all three countries. The U.S.-Canada working arrangement has resulted in several teleconferences over the past month. Historically, this process has resulted in mutually beneficial understandings on efficient, interference-free use of the spectrum in the U.S.-Canada and U.S.-Mexico border areas. The Commission expects these consultations will ultimately lead to a better-designed and more successful incentive auction, and will create opportunities for greater spectrum efficiency and band harmonization across North America.

Strengthening the Emergency Alert System: Lessons Learned from the Nationwide EAS Test

The first-ever nationwide test of the Emergency Alert System demonstrated that the national EAS distribution architecture is basically sound.

As expected, however, the test uncovered several problems that impeded the ability of some EAS Participants to receive and/or retransmit the EAN. These included:

Widespread poor audio quality nationwide;
Lack of a Primary Entry Point (PEP) in the area to provide a direct connection to FEMA;
Use of alternatives to PEP-based EAN distribution;
The inability of some EAS Participants either to receive or retransmit the EAN;
Short test length; and
Anomalies in EAS equipment programming and operation.

The Federal Communications Commission’s Public Safety and Homeland Security Bureau recommends that another nationwide test be conducted after the Commission takes a number of steps to strengthen the EAS, including:
1) Commencing a rulemaking proceeding to examine equipment performance issues during activation of an EAN and seek comment on proposed changes, if any, to the EAS equipment rules to ensure that EAS equipment operates in a consistent fashion throughout the EAS architecture.
2) Issuing a Public Notice encouraging states to review and as necessary update their EAS plans to ensure that they contain accurate and up-to-date information regarding monitoring assignments as required by FCC rules.
3) Commencing a rulemaking proceeding to consider possible changes to its EAS plan rules.
4) Working with FEMA to develop and issue best practices and other educational materials for EAS Participants, and, also with FEMA, consider hosting a workshop or other public forum that could provide opportunities to educate EAS Participants about EAS performance and address concerns and questions EAS Participants may have about EAN operations.

Turning to the issue of nationwide EAS testing, the Bureau recommends that the Commission take the following actions:
1) Commencing a rulemaking proceeding to address any operational nationwide EAS test issues left open in previous EAS orders, such as a possible nationwide location code for national EAS activations, use of the National Periodic Test code or other test code that would allow FEMA and the FCC to conduct less disruptive nationwide tests; and future use of the EAS Operation Handbook.
2) Developing a new Nationwide EAS Test Reporting System database to improve electronic filing of test result data by EAS Participants.
3) Encouraging the Executive Office of the President to reconvene the Federal EAS Test Working Group to ensure accountability as Federal partners and other stakeholders work to implement the lessons learned from the first test and to plan for future nationwide tests.

Benton

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