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July 2013

Open Meeting Presentation on LEAD Recommendations and Digital Learning

During the Federal Communications Commission’s July 19 meeting, Kenmore Middle School Principal Dr. John Word joined representatives from the bipartisan LEAD Commission – former U.S. Department of Education Secretary Margaret Spellings and Founder and CEO of Common Sense Media Jim Steyer – to deliver presentations on the need to wire U.S. schools for digital education.

LEAD Commission released a five-point blueprint, outlining specific actions to accelerate the expansion of digital learning in K-12 Education in the United States.

  1. Solve our infrastructure challenge by wiring schools with high-speed broadband;
  2. Build a national initiative to put learning devices in the hands of all students by 2020;
  3. Accelerate adoption of digital curriculum and encourage continued innovation;
  4. Embrace and encourage model schools; and
  5. Invest in human capital to train our teachers.

The LEAD Commission co-chair said that the E-Rate program should be updated to reflect the realities and needs of kids and schools today. Several key goals are important to this rulemaking process:

  • The program should be aligned with today’s technology, focusing on high-speed bandwidth;
  • It should focus on supporting next generation models such as online and blended learning;
  • The program should be simplified to make it easier for school districts to access E-Rate funds;
  • It should be updated to align with current reform efforts in education; and
  • It should better connect to other technology efforts at the state and local level so that we leverage other efforts and build a cohesive system.

How the FCC Could Revolutionize Education and Put Computers in More Students’ Hands

On July 19, the Federal Communications Commission will start restructuring the "E-rate" under which Washington provides funds to help schools connect to the Internet. This seemingly obscure decision could trigger an education revolution by enormously accelerating the deployment of tablets and other digital tools into classrooms.

Even lawyers' eyes may glaze over when confronted with the gray columns in the "Notice of Proposed Rulemaking" the commission will unveil on Friday, but the document will provoke a kaleidoscope of change for the families of America's 76 million primary and secondary students—and sooner than many might imagine. "This is a once-in-a-generation opportunity to allow our education system to essentially leapfrog some of our competitor nations," says James Shelton, the acting Education Department deputy secretary. The generational opportunity that Shelton and other advocates envision centers on the use of digital technology to create a more personalized learning environment. Reformers project a reimagined classroom in which all students are equipped with tablets or laptops that allow them to work at their own pace on lessons that adjust to their progress; use video links to take courses, such as advanced science lessons, only available at other schools; and receive real-time feedback from teachers who obtain reports on their performance through online connections with the students' devices. Constant digital updates would replace bulky out-of-date textbooks lugged in spine-crushing backpacks. If the FCC brings mass broadband to the classroom by expanding the E-rate program, it will create a vast new market for everything connected to digital education. That will likely spur a virtuous cycle of invention and competition that generates new answers to all of these challenges from educators, parents, and private companies alike. To promote new digital breakthroughs, the FCC for years has mostly bet on a strategy of deregulation. But to propel schools into the Information Age, government intervention looks like the indispensable first step toward unlocking private innovation.

FCC Adopts 15th Report on the Status of Competition in the Market for the Delivery of Video Programming

The Federal Communications Commission (FCC) adopted its 15th Report to Congress on the status of competition in the market for the delivery of video programming. The Report, which covers 2011 and 2012, measures the market’s progress toward increasing competition and diversity in multichannel video programming distribution, increasing the availability of satellite delivered programming, and spurring the development of communications technologies.

The trends found since the 14th Report show continued deployment of digital technology, sustained consumer demand for access to video programming anywhere and anytime, an increased number of households with access to four multichannel video programming distributors (MVPDs) as telephone companies extend their video systems, and an increased number of online video providers who are entering the market as well as developing original content.

Specifically, the Commission found that, among other things:

  • The number of MVPD subscribers grew from 100.8 million to 101.0 million households between year-end 2010 and June 2012. During this period, cable’s share of MVPD subscribers fell from 59.3 percent of all MVPD video subscribers at the end of 2011 to 55.7 percent at the end of June 2012.
  • Between year-end 2010 and June 2012, Direct Broadcast Satellite (DBS) MVPDs and telephone MVPDs gained both video subscribers and market share.
  • Since the last report, the number of households relying exclusively on over-the-air broadcast service has remained steady at approximately 11.1 million households, although the percentage of all households they represent increased slightly from 9.6 percent in 2011 to 9.7 percent in 2012.
  • While the online video distributor (OVD) industry is still evolving, OVDs continue to expand the amount of video content available to consumers through original programming and new licensing agreements with traditional content creators.
  • Viewing of OVDs’ video programming on television sets is becoming increasingly prevalent. For example, one source, SNL Kagan, estimated by the end of 2012 the number of Internet-connected television households (i.e., accessed via an Internet-enabled game console, OVD set-top box, television set, or Blu-ray player) would have grown to 41.6 million, or 35.4 percent of all television households.

Allegations of Anticompetitive Behavior in Satellite Industry

The Federal Communications Commission seeks comment on whether, and, if so, to what extent, incumbent satellite operators are inhibiting competition in the market for satellite services, particularly in the fixed-satellite services (FSS) arena. Specifically, the Commission seeks comment on whether FSS operators are warehousing satellite orbital locations and frequency assignments, and preventing competitors from purchasing capacity on incumbent-owned satellites. Comments are due on or before August 19, 2013, and reply comments are due on or before September 17, 2013.

[IB DOCKET NO. 13–147; FCC 12–79]

FCC Commemorates 23rd Anniversary of the Americans with Disabilities Act

In recognition of the 23rd anniversary of the Americans with Disabilities Act (ADA), the Federal Communications Commission highlighted milestones in its efforts to bring the accessibility provisions of the Communications Act into the digital age by implementing the Twenty-First Century Communications and Video Accessibility Act (CVAA).

Signed into law by President Obama on October 8, 2010, the CVAA ensures that people with disabilities have equal access to Internet communication and video programming technologies of the 21st century.

FCC Raises Standards Governing Phone Relay Service for People with Speech Disabilities

The Federal Communications Commission raised the standards for providers of Speech-to-Speech (STS) Relay Service in order to improve the experience for persons with a speech disability who need the service in order to make telephone calls using their own voice or an assistive voice device. The order amends certain mandatory minimum standards to improve Speech-to-Speech TRS, including:

  1. Increasing the time a Communications Assistant (CA) must stay with a call. For each STS call lasting for 20 minutes or longer, an STS CA must stay with the call for a minimum of 20 minutes before transferring the call to another CA. This increases the current minimum period before such a transfer may be made from 15 to 20 minutes. Establishing effective communication between an STS user and a CA can require a period of adjustment. Extending the length of time a CA must stay with a call will improve the effectiveness and efficiency of the communications by reducing the number of instances an STS user would need to re-establish communication with another CA.
  2. Muting option. Providers must offer STS users the option to mute their voices during an STS call. Because some users are uncomfortable with having their voices heard by the other party to the call, this function will give users the option to have the called party hear only the CA’s voice.
  3. Dialing 711 to initiate STS calls. STS callers who dial 711 (the TRS dialing code) must have the same ease of reaching an STS CA as users of other types of TRS.
Weekly Digest

Another Week, Another Wireless Deal – Part II

July 19, 2013 (NSA Imposes Rules to Protect Secret Data)

BENTON'S COMMUNICATIONS-RELATED HEADLINES for FRIDAY, JULY 19, 2013

FCC Open Meeting this morning http://benton.org/node/154262


GOVERNMENT & COMMUNICATIONS
   NSA Imposes Rules to Protect Secret Data Stored on Its Networks
   The NSA Wants America's Most Powerful Corporations to Be Dependent on It - analysis
   Are there really two PRISMs, or just one PRISM with NATO involvement?
   House Appropriations panel approves e-mail privacy amendment [links to web]
   Ex-CIA director says Huawei spied for China [links to web]
   New Jersey Supreme Court Restricts Police Searches of Phone Data [links to web]
   The Fading Voice of Liberty - op-ed
   The Case for American Propaganda - op-ed

INTERNET/BROADBAND
   Democrats investigate hidden fees on Internet, cellphone bills
   Conservative economist predicts 1.5 million jobs from online sales tax [links to web]
   Frontier satisfies state-mandated performance goals in WV [links to web]

WIRELESS/SPECTRUM
   Sens. Rubio, Warner Concerned About NTIA Spectrum Reclamation
   Bill Re-Introduced to Pair Spectrum for Auction [links to web]
   SoftBank Chief Hints at More Price Cuts for Sprint [links to web]
   Surge in Wireless Contracts Boosts Verizon’s Profit [links to web]
   Verizon Looks to Edge Out Competition With Six-Month Upgrade Program
   At 60% ownership, is the U.S. smartphone market saturated?
   Democrats investigate hidden fees on Internet, cellphone bills

CYBERSECURITY
   House Panel Vets Cybersecurity Executive Order
   Business groups call for data breach law

CONTENT
   Vivendi Declined SoftBank’s Lucrative Offer for Universal
   Will Apple, Google or Microsoft make one OS to rule them all?

TELEVISION
   How about a compromise on bundling cable TV channels? - analysis
   How We Watch TV is Changing, and the Emmy’s Just Recognized That [links to web]
   What Will It Take To Make Cheap Over-The-Top TV Viable? - analysis [links to web]
   CBS in Contract Showdown With Time Warner Cable [links to web]

PRIVACY
   The Rules of In-Store Surveillance
   You (and Your Cellphone) on Candid Camera - NY Times editorial [links to web]

MORE ONLINE
   San Jose State will suspend online courses offered with Udacity [links to web]
   Big Data Is the Only Way to Compete With Google - op-ed [links to web]
   Google Results Show Struggle With Mobile [links to web]

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GOVERNMENT & COMMUNICATIONS

NEW NSA RULES
[SOURCE: New York Times, AUTHOR: David Sanger, Eric Schmitt]
The National Security Agency has imposed new rules designed to sharply restrict the sharing and downloading of top-secret material from its computer networks after a review of how Edward Snowden, a former agency contractor, managed to expose several of the country’s most sensitive surveillance programs. First among the new procedures is a “two-man rule” — based on the model of how nuclear weapons are handled — that requires two computer systems administrators to work simultaneously when they are inside systems that contain highly classified material. The NSA also plans to keep the most sensitive data in a highly encrypted form, sharply limiting the number of system administrators — like Snowden — who can move data throughout the nation’s intelligence agencies and the Defense Department.
benton.org/node/156119 | New York Times
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NSA AND CORPORATIONS
[SOURCE: The Atlantic, AUTHOR: Conor Friedersdorf]
[Commentary] The National Security Agency aggressively reached out to America's biggest, most powerful corporate actors in ways that ostensibly offer an upside of added protection against attack, but at a terrible cost: the extreme concentration of power in the United States. The federal government, Wall Street, Silicon Valley -- all are centers of power. In fact, entities within each sphere are powerful enough, on their own, to warrant constant vigilance. The NSA has constant access to troves of private communications. So does Google. I wouldn't bet that, 10 years from now, Google is going to launch a sophisticated blackmail campaign against America's ruling class. But if they wanted to, they'd have the data! What ultimately restrains powerful entities is their separateness. If Google tried to blackmail people, the federal government could arrest, prosecute, and jail the responsible parties. If national-security officials tried to mistreat Google, its management could marshal a substantial fortune, high-powered lawyers, and a far-reaching public platform to fight back. The same goes for Wall Street, Walmart, and the city of Walla Walla, Washington: America has countless repositories of power, some big, some small. And while that doesn't always prevent abuses, even serious ones, it has prevented us from becoming a society where anyone, whether a military dictator or the owner of a company store, has free rein to rule over regular people.
benton.org/node/156117 | Atlantic, The
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PRISM?
[SOURCE: GigaOm, AUTHOR: David Meyer]
If you thought the PRISM debacle couldn’t get any more convoluted, then listen up. It turns out that there are two PRISM programs… or not, in which case the German government may be heading for a fall. It depends on who you believe: the newspaper Bild or the German government. The German federal elections are coming up and PRISM is a major issue. The opposition parties have demanded answers about what Angela Merkel’s administration knew about the Americans spying on German citizens en masse. The government is sticking to its line that only highly-targeted data-sharing takes place, in order to keep the public safe from terrorism, and that it never knew about the wider PRISM program. Bild published a major scoop, based on a document that was apparently sent by NATO to all the regional commands in Afghanistan back in 2011. This document laid out instructions for cooperation under a program called PRISM, which involved monitoring emails and phone calls, with access regulated by the U.S. Joint Worldwide Intelligence Communications System (JWICS). This document naturally made its way to the Germans, who are somewhat controversially deployed in Afghanistan and, as Bild framed it, this meant the German government is lying about its PRISM ignorance.
benton.org/node/156064 | GigaOm
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BBG
[SOURCE: Wall Street Journal, AUTHOR: S Enders Wimbush]
[Commentary] The new oversight structure Congress set up in 1995 to manage international broadcasting from the Voice of America, Radio Free Europe and Radio Liberty —the Broadcasting Board of Governors— is deeply flawed. The result has been management chaos and paralysis, and decisions about broadcasting that wasted money and, worse, squandered crucial opportunities to reach both friends and enemies abroad at a time of great international turmoil. Aware of many of these problems, Congress is again seeking to reform international broadcasting. Putting the Broadcasting Board of Governors out of business should be a top priority. Incremental changes will never solve the BBG's built-in problems and contradictions. Starting over means eliminating the board, and putting all U.S. international broadcasting into a single nonfederal organization under professional management. The objective is a single organization, with professional leadership and management, and strong connective tissue to America's strategic center—logically the National Security Council—with strong input from Congress. There must also be a sturdy firewall against political interference in U.S. international broadcasting's journalistic mission. [Wimbush served on the Broadcasting Board of Governors from 2010-12 and was director of Radio Liberty from 1987-93.]
benton.org/node/156113 | Wall Street Journal
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AMERICAN PROPAGANDA
[SOURCE: Foreign Policy, AUTHOR: Rosa Brooks]
[Commentary] This week saw yet another manifestation of our national paranoia about The Government. Late in 2012, Congress passed the Smith-Mundt Modernization Act, and in January 2013, President Obama signed it into law. The act repealed a Cold War-era prohibition on disseminating government information produced for foreign audiences inside the United States. As of July 1, when the repeal took effect, radio and TV programs designed for non-U.S. audiences, such as those produced by Voice of America, can now be re-broadcast in the United States. The sky is falling! Left and right are temporarily united over the horror of "government propaganda" hitting the U.S. airwaves. Okay, I guess I get it. With so much idiotic privately produced propaganda already widely available here in the U.S. of A., who needs government propaganda? Our private sector already does a fine job of disseminating inflammatory misinformation, thank you very much. I mean: We already have Fox News, Matt Drudge, and TruthOut. We can already find plenty of media outlets that purvey shamelessly one-sided, irresponsible garbage. Why muddy the waters by adding government-funded news?
benton.org/node/156056 | Foreign Policy
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INTERNET/BROADBAND

HIDDEN NET AND CELLPHONE FEES
[SOURCE: The Hill, AUTHOR: Brendan Sasso]
Reps. Anna Eshoo (D-CA) and Mike Doyle (D-PA), Ben Ray Luján (D-NM) and Jim Matheson (D-UT) sent letters to leading Internet and cellphone service providers, questioning them over extra fees that are often tacked on to consumers' bills. The "below-the-line" charges include administrative, recovery and service fees and generate hundreds of millions of dollars for communications companies, according to the lawmakers. They accused the companies of deceiving consumers by advertising low rates, and then piling on unexpected charges at the end of the month. "Transparency and disclosure in the marketplace ensure that consumers are able to accurately compare competing services and choose the provider that best meets their needs," the lawmakers wrote. Verizon, AT&T, Sprint, T-Mobile and CenturyLink received the letters. The lawmakers asked the companies to detail any extra fees they charge and how they disclose those fees. They asked whether the companies charge customers for changing their service plan and whether they notify consumers before imposing extra costs. Consumer advocacy groups Public Knowledge, Consumers Union and Free Press issued statements applauding the lawmakers for opening the investigation.
benton.org/node/156092 | Hill, The
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WIRELESS/SPECTRUM

NTIA SPECTRUM RECLAMATION
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
Sens. Mario Rubio (R-FL) and Mark Warner (D-VA) have asked National Telecommunications and Information Administration chief Larry Strickling for answers on what the agency is doing to free up government spectrum, particularly given the President's June 14 memo on spurring wireless innovation and in light of a Government Accountability Office study from April 2011 that concluded NTIA "cannot ensure that spectrum is being used efficiently by federal agencies" and "has limited ability to monitor federal spectrum use." "Without effective NTIA management and oversight, we have serious reservations about the agency's ability to maximize spectrum efficiency and relinquish portions of federal spectrum," the senators wrote. The asked:
What specific measures has NTIA taken to address the findings in the 2011 GAO report and improve spectrum management?
What specific steps will NTIA take, over the next 6 to 12 months to carry out the directives of the memorandum?
When analyzing federal agency use of spectrum under Sec. 3 of the Presidential Memorandum, how will NTIA ensure that agencies' assessments are accurate?
What tools are in place to assess how federal agencies are using assigned spectrum, and how will NTIA hold agencies accountable for the valuable spectrum they occupy? Specifically, how will NTIA ensure federal agencies are maximizing spectrum efficiency?
How does NTIA assess fees on federal agencies for spectrum assignments? Does the agency believe the current structure provides the proper incentives for agencies to increase spectrum efficiency? Will this fee structure be examined when implementing the Presidential Memorandum?
Would it be helpful for NTIA to designate a 'trusted agent' structure to liaise between federal agencies charged with providing classified systems capabilities and private sector representatives seeking information on spectrum usage in areas currently used for national security and intelligence functions? If so, please explain how soon such a process could be implemented.
benton.org/node/156098 | Broadcasting&Cable
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VERIZON UPGRADE PROGRAM
[SOURCE: Wall Street Journal, AUTHOR: Bonnie Cha]
Verizon is joining AT&T and T-Mobile in offering a new program that will allow customers to upgrade their phones more frequently than every two years. The plan is called Verizon Edge, and it will launch on August 25. With Verizon Edge, you pay the full retail price of a phone, along with a month-to-month service plan. The cost of the handset is divided into 24 monthly installments, and the first payment is due at the point of sale. If, after six months, you decide you want to upgrade your phone, you can do so, as long as you’ve paid 50 percent of the unsubsidized price, and the phone is still in working condition. Once you trade in your device, all final payments are waived, you choose another handset of your liking, and start all over again. Verizon Edge is available for basic and feature phones, not just smartphones. Verizon Edge doesn’t include a finance charge, program fee or upgrade fee.
benton.org/node/156070 | Wall Street Journal | Verizon | USA Today
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SMARTPHONE MARKET
[SOURCE: Fortune, AUTHOR: Philip Elmer-DeWitt]
Forty percent of U.S. mobile customers still use feature phones and represent an untapped market. Except for BlackBerry, churn between smart platforms is still negligible; it's the non-smartphone makers who are shedding customers. And even at 60% penetration, the rate of smartphone adoption is not slowing in any perceptible way. Worldwide, 4 billion people are about to switch from feature phones to smartphones.
benton.org/node/156058 | Fortune
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CYBERSECURITY

CYBERSECURITY ORDER
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
The House Homeland Security Subcommittee on Cybersecurity held a hearing on the President's executive order mandating the development of a cybersecurity framework, and it is clear the issue of whether that framework becomes regulation by proxy remains a concern to Republican leadership on the subcommittee. Hearing witnesses from the National Institute of Standards and Technology (NIST) and the Department of Homeland Security assured the subcommittee that the they were still focused on a voluntary framework and that the "buy-in" from industry stakeholders would be critical to the success of the program. But Robert Kolasky from the Department of Homeland Security, who is among the officials overseeing the cybersecurity standards-setting process, said the Administration still believed a "comprehensive suite" of legislation was needed to buttress the order. Those include facilitating information sharing with government, something the president could not order, privacy and civil liberties protections, incentivizing adherence to voluntary best practices and data breach reporting requirements.
benton.org/node/156081 | Broadcasting&Cable
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DATA BREACH LAW
[SOURCE: The Hill, AUTHOR: Brendan Sasso, Jennifer Martinez]
Industry groups called on Congress to set a national data breach notification requirement at a House hearing. Businesses rarely urge Congress to regulate them more, but the witnesses explained that the current patchwork of state laws is burdensome to comply with. "State laws often vary needlessly and in some cases don’t make sense," Kevin M. Richards, senior vice president of federal government affairs for TechAmerica, said during the hearing of the House Commerce Committee’s Subcommittee on Commerce, Manufacturing and Trade. “These compliance obligations are particularly burdensome, however, for the small- to medium-size business," Dan Liutikas, chief legal officer for CompTIA, testified.
benton.org/node/156109 | Hill, The | House Commerce Committee
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CONTENT

VIVENDI-SOFTBANK
[SOURCE: New York Times, AUTHOR: Ben Sisario]
Apparently, Vivendi, the French media and telecommunications conglomerate, rejected an $8.5 billion cash bid from SoftBank for the Universal Music Group, even though it represented a premium of at least $2 billion more than some analysts’ estimates of Universal Music’s value. SoftBank made its bid to Vivendi’s board about three months ago. The bid for Universal underscores the attractiveness of large music and media catalogs in the digital age, even as record companies struggle to replace revenue from lost CD sales. Consumers are increasingly turning for their entertainment to streaming services like Spotify and Netflix, which sell access to music or movies and rely on licensing deals with media companies. Universal is the world’s largest music company, with hundreds of artists. Last year Universal had $6 billion in revenue, and $694 million in earnings before interest, taxes and amortization.
benton.org/node/156103 | New York Times | FT
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OPERATING SYSTEMS
[SOURCE: Los Angeles Times, AUTHOR: Chris O'Brien]
With Microsoft's reorganization last week, a curious thing has now happened at the three companies that are the biggest players in the world of operating systems. In the last year, Apple, Google and Microsoft have all moved to put one person in charge of both their mobile and desktop operating systems. Coincidence? Perhaps. But Colin Gillis, an analyst at BGC Partners, who mentioned the trend in a recent conversation, says the shift seems to be pointing each company toward convergence some time, even if that point remains far down the road. "Do these companies want both of those operating systems?" Gillis said. "Probably not." Over time, Gillis said, as mobile hardware becomes more robust, these companies can build more features into their mobile OS. At the same time, users of desktops and laptops are growing to expect some of the mobile features on those platforms.
benton.org/node/156068 | Los Angeles Times
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TELEVISION

A LA CARTE CABLE
[SOURCE: Los Angeles Times, AUTHOR: David Lazarus]
[Commentary] A report issued by the New York investment bank Needham & Co. warns that a switch to so-called a la carte programming would cost the pay-TV industry about $70 billion and leave viewers with fewer than 20 channels. "If you unbundle, it would be bad for the TV industry but also bad for consumers," said Laura Martin, senior media analyst at Needham and author of the report, "The Future of TV." "The question is whether value to consumers is measured by the quantity of choice available or the price," she told me. "I think choice is better." "There's a lot of waste with these huge bundles of channels," said Linda Sherry, a spokeswoman for the advocacy group Consumer Action. "People are paying a lot of money for channels they don't watch. They're not getting a good deal." To me, that's the bottom line here: Are consumers getting the best possible deal? As long as you're being forced to swallow channels you never watch, the answer has to be no. Martin's response is that consumers are indeed getting a good deal — a great deal, in fact. It all depends on how you look at it. If the average cable bill runs about $70 a month, Martin said, people should view that as $60 for the dozen or so channels they watch on a regular basis, plus an additional $10 for the option of watching more than 100 other channels any time they please. This ability to discover new programming — the opportunity to make choices — is more important to most TV viewers than saving a few bucks a month, Martin insisted.
benton.org/node/156096 | Los Angeles Times
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PRIVACY

IN-STORE SURVEILLANCE
[SOURCE: New York Times, AUTHOR: Quentin Hardy]
Cellphone signals, special apps and our movements tracked by software-enhanced cameras in stores are the equivalent of the tracking cookies in Internet browsers. Most people don’t seem to mind being tracked online, if the low percentage of people who disable cookies is any indication. Offline tracking, though, still seems to be a concern. Nordstrom discontinued using one mobile phone tracking system, produced by Euclid Analytics, after shoppers complained. That may be because the systems are new, and some people see more harm than benefit from the surveillance. On July 16, several companies involved in offline tracking announced that they would be working with a Washington-based research group, the Future of Privacy Forum, to develop a series of “best practices” for privacy controls for what it called “retail location analytics,” or tracking. Over time, it is likely that at least some customers will accept tracking, particularly if offered incentives like free mall parking in exchange for visiting a specific store.
benton.org/node/156107 | New York Times
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NSA Imposes Rules to Protect Secret Data Stored on Its Networks

The National Security Agency has imposed new rules designed to sharply restrict the sharing and downloading of top-secret material from its computer networks after a review of how Edward Snowden, a former agency contractor, managed to expose several of the country’s most sensitive surveillance programs.

First among the new procedures is a “two-man rule” — based on the model of how nuclear weapons are handled — that requires two computer systems administrators to work simultaneously when they are inside systems that contain highly classified material. The NSA also plans to keep the most sensitive data in a highly encrypted form, sharply limiting the number of system administrators — like Snowden — who can move data throughout the nation’s intelligence agencies and the Defense Department.

The NSA Wants America's Most Powerful Corporations to Be Dependent on It

[Commentary] The National Security Agency aggressively reached out to America's biggest, most powerful corporate actors in ways that ostensibly offer an upside of added protection against attack, but at a terrible cost: the extreme concentration of power in the United States.

The federal government, Wall Street, Silicon Valley -- all are centers of power. In fact, entities within each sphere are powerful enough, on their own, to warrant constant vigilance. The NSA has constant access to troves of private communications. So does Google. I wouldn't bet that, 10 years from now, Google is going to launch a sophisticated blackmail campaign against America's ruling class. But if they wanted to, they'd have the data! What ultimately restrains powerful entities is their separateness. If Google tried to blackmail people, the federal government could arrest, prosecute, and jail the responsible parties. If national-security officials tried to mistreat Google, its management could marshal a substantial fortune, high-powered lawyers, and a far-reaching public platform to fight back. The same goes for Wall Street, Walmart, and the city of Walla Walla, Washington: America has countless repositories of power, some big, some small. And while that doesn't always prevent abuses, even serious ones, it has prevented us from becoming a society where anyone, whether a military dictator or the owner of a company store, has free rein to rule over regular people.

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