September 27, 2013
We’ll NOT see you first thing Monday morning – look for a special PM edition of Headlines on Sept 30
BENTON'S COMMUNICATIONS-RELATED HEADLINES for FRIDAY, SEPTEMBER 27, 2013
All those extra wonks in DC this weekend are headed to TPRC in Arlington – well, maybe after discussing The Internet Protocol Transition: Where Do We Stand? at ITIF http://benton.org/calendar/2013-09-27/
NEWS FROM THE FCC MEETING
FCC Opens Proceeding to Consider Elimination Of The UHF Discount - press release
FCC to Open LPFM Window on October 15
Chairman Upton, Walden Respond to FCC Decision to Change Rules In the Middle of the Game - press release [links to web]
FCC Proposes to Remove Barriers to Wireless Infrastructure - press release
Commission Ruling Opens Door For Low-Cost Call Routing Service For Inmates And Their Families - press release
FCC Upholds Bloomberg News Neighborhooding Complaint Against Comcast [links to web]
FCC Reminds Connect America Phase I Challenge Participants to Protect Customer Privacy in Challenge Process - public notice [links to web]
GOVERNMENT & COMMUNICATIONS
Senators Push to Preserve NSA Phone Surveillance
Sen. Feinstein unveils her own bill to reform the NSA’s spying practices
Here’s how Ron Wyden wants to rein in the NSA
Sen Wyden hints that NSA tracked locations for millions of cellphones
Keith Alexander: In Best Interest Of US To 'Put All The Phone Records' Into A Searchable 'Lockbox'
Shutdown unlikely to stop NSA spying
Senators Lash Out At The Media Over Public's NSA Opposition
China's lifting of Internet blockade denied by state media
INTERNET/BROADBAND
Over Three-Quarters of US Households Get Broadband at Home - press release
Republicans consider “blocking net neutrality” among debt ceiling demands
Want gigabit fiber home Internet? Move to one of these cities [links to web]
CONTENT
Suffocating Echo Chamber - analysis
EA Cancels Next Year’s College Football Game
Fifteen Years In, Google Revamps Its Search Algorithm and Celebrates Its Roots
Netflix: Hollywood’s Favorite Charity - analysis [links to web]
Yes, some people will pay you for your news — a really, really small number of people [links to web]
Google’s chief economist understands media better than some industry executives do [links to web]
PRIVACY
Wiretapping laws apply to Google intercepting e-mails, federal judge says
When Google Brainstorms, Online World Shudders
TELEVISION/RADIO
The Future of TV: How Do Networks Plan to Stay Competitive? [links to web]
Netflix Seeks Presence on US Cable-TV Systems to Expand [links to web]
FCC Upholds Bloomberg News Neighborhooding Complaint Against Comcast [links to web]
New legislation would kill CableCard, potentially spell trouble for third-party cable boxes [links to web]
FCC to Open LPFM Window on October 15
Numero uno radio host in L.A. stays humble [links to web]
OWNERSHIP
John Malone Says Time Warner Cable Deal Still Makes Sense [links to web]
SPECTRUM/WIRELESS
More Than $116 Million Awarded to Assist States in FirstNet Planning - press release [links to web]
Sprint CFO: We're still open to spectrum hosting deals [links to web]
Long Before Navy Yard Shooting, Military First Responders Complained of Bum radios [links to web]
POLICYMAKERS
Further ONC shakeup as No. 2 Muntz announces departure [links to web]
STORIES FROM ABROAD
China's lifting of Internet blockade denied by state media
Vodafone deal poised to drive shake-up of European telecoms
EU’s broadband challenge, part 2: Kroes calls for a digital single market - analysis [links to web]
Reporting Iran’s News, but Speaking for One Side [links to web]
MORE ONLINE
Feds Already Knew It's Too Soon for Cyber Workforce Standards [links to web]
Free Cable for Building Managers, but With Fine Print [links to web]
NEWS FROM THE FCC MEETING
FCC OPENS PROCEEDING TO CONSIDER ELIMINATION OF THE UHF DISCOUNT
[SOURCE: Federal Communications Commission, AUTHOR: Press Release]
The Federal Communications Commission initiated a proceeding to consider eliminating a provision that gives special treatment to UHF channels under its national television ownership cap. Called the UHF discount, the provision was adopted nearly 30 years ago when UHF signals were regarded as technically inferior to VHF signals in analog television broadcasting. The broadcast television ownership rule prohibits a single entity from owning stations that reach in the aggregate more than 39% of total television households nationwide. The UHF discount allows stations broadcasting in UHF to count toward that cap only 50% of the television households in their Designated Market Areas, as opposed to the 100% requirement for VHF stations. With the transition of full-power stations to digital broadcasting in 2009, the technical inferiority of UHF appears to be a thing of the past. Therefore, the technical justification for the UHF discount no longer seems to exist. The FCC seeks to ensure that its rules reflect the current state of television broadcasting technology. The proceeding also furthers the FCC’s mandate to evaluate its rules to make certain they continue to serve the public interest. Specifically, the Notice of Proposed Rulemaking seeks comment on the following tentative conclusions and proposals:
The FCC has the authority to modify the national television ownership rule, including the authority to revise or eliminate the UHF discount.
The UHF discount should be eliminated from the national television ownership rule because the historical justification for the discount no longer exists.
If the UHF discount is eliminated, grandfathering should be accorded to existing broadcast station ownership groups that exceed the 39% national audience cap by virtue of the elimination of the discount and to proposed station combinations that exceed the 39% cap by virtue of the elimination of the discount if an application is pending with the FCC or the Commission has approved the transaction but it is not yet consummated when the NPRM is released. Grandfathered ownership combinations subsequently sold or transferred would be required to comply with the national FCC cap in existence at the time of the transfer.
Should the FCC consider adopting a VHF discount at this time?
benton.org/node/161138 | Federal Communications Commission | NPRM | Chairwoman Clyburn | Commissioner Rosenworcel | Commissioner Pai
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FCC TO OPEN LPFM WINDOW ON OCTOBER 15
[SOURCE: Benton Foundation, AUTHOR: Rebecca Ellis]
Soon there will be a multitude of new voices on the air. And these new voices have three weeks to line up for their ticket to the airwaves by applying for licenses operate on air. The Federal Communications Commission (FCC) will open up the next filing window for low-powered FM (LPFM) stations across the country on October 15, 2013. And there is much work to be done to prepare for a possible onslaught of applications, according to FCC Chairwoman Mignon L. Clyburn.
benton.org/node/161175 | Chairwoman Clyburn | Commissioner Rosenworcel | Commissioner Pai
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FCC PROPOSES TO REMOVE BARRIERS TO WIRELESS INFRASTRUCTURE
[SOURCE: Federal Communications Commission, AUTHOR: Press Release]
The Federal Communications Commission adopted a Notice of Proposed Rulemaking (NPRM) initiating a review of its wireless infrastructure policies. The NPRM builds upon the Broadband Acceleration Initiative, including a 2011 Notice of Inquiry seeking comment on measures needed to reduce obstacles to obtaining access to rights-of- way and locations for wireless facilities. Increasing certainty in the FCC’s processes and removing barriers to infrastructure deployment will spur public and private investment, while expanding wireless coverage and capacity throughout the Nation. Specifically, the NPRM seeks comment on:
Streamlining the environmental and historic preservation review processes for newer technologies, including small cells and distributed antenna systems;
Removing barriers to the deployment of temporary towers that are used in cases of emergencies or to add capacity during short term events;
The meaning of terms included in a provision of the Middle Class Tax Relief and Job Creation Act of 2012 which states “a State or local government may not deny, and shall approve, any eligible facilities request for a modification of an existing wireless tower or base station that does not substantially change the physical dimensions of such tower or base station;” and
Clarification of issues addressed in the Commission’s “shot clock” order which set time periods for state and local governments to complete review of wireless siting applications.
benton.org/node/161140 | Federal Communications Commission | NPRM | Chairwoman Clyburn | Commissioner Rosenworcel | Commissioner Pai
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COMMISSION RULING OPENS DOOR FOR LOW-COST CALL ROUTING SERVICE FOR INMATES AND THEIR FAMILIES
[SOURCE: Federal Communications Commission, AUTHOR: Press Release]
Families of prison inmates should enjoy new options for reducing the high cost of phone calls to loved ones in jails and prisons, due to action taken by the Federal Communications Commission’s Wireline Competition Bureau. In a Declaratory Ruling, the Bureau finds that Inmate calling service providers are not allowed to unilaterally block innovative call routing services offered in the broad marketplace. The Bureau ruling follows comprehensive action taken by the Commission to bar high rates for long-distance calls in jails and prisons nationwide. These actions are likely to facilitate increased contact between inmates and their loved ones. Studies have shown that contact between inmates and their families and communities can reduce the rate of recidivism, which in turn provides benefits to society overall. Inmate calling service provider Securus Technologies blocked ConsCallHome, arguing that Commission precedent permitted such blocking, and sought a ruling from the FCC on the issue. The Bureau found that the Commission precedent cited by Securus was not applicable in this context. “As the Commission has previously found, call blocking is largely antithetical to the fundamental goal of ubiquity and reliability of the telecommunications network,” the FCC declared in its ruling.
benton.org/node/161167 | Federal Communications Commission | read the Order
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GOVERNMENT & COMMUNICATIONS
PUSH TO PRESERVE NSA SURVEILLANCE
[SOURCE: New York Times, AUTHOR: Charlie Savage]
Lawmakers kicked off a debate about whether to drastically curb the National Security Agency's spy programs, setting up an odd legislative battle that pits establishment lawmakers against mavericks in both parties. But the Senate Intelligence Committee appears to be moving toward swift passage of a bill that would “change but preserve” the once-secret NSA program that is keeping logs of every American’s phone calls, Senator Dianne Feinstein, the California Democrat who leads the panel. Chairman Feinstein, speaking at a rare public hearing of the committee, said she and the top Republican on the panel, Sen Saxby Chambliss (R-GA)), are drafting a bill that would be marked up — meaning that lawmakers could propose amendments to it before voting it out of committee — as early as next week. Chairman Feinstein said her bill would be aimed at increasing public confidence in the program, which she said she believed was lawful. The measure would require public reports of how often the NSA had used the calling log database, she said. It would also reduce the number of years — currently five — that the domestic calling log data is kept before it is deleted. It would also require the N.S.A. to send lists of the phone numbers it searches, and its rationale for doing so, to the Foreign Intelligence Surveillance Court for review.
benton.org/node/161197 | New York Times | Wall Street Journal | CSM
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SEN. FEINSTEIN UNVEILS HER OWN BILL TO REFORM THE NSA’S SPYING PRACTICES
[SOURCE: Washington Post, AUTHOR: Brian Fung]
Leaders of the Senate Intelligence Committee are proposing a bill aimed at improving transparency at the National Security Agency. Committee Chairman Feinstein said at a hearing that her intention was to "change, but preserve" the metadata collection program. Among the provisions are a requirement that the NSA publish an annual transparency report — which the government has already voluntarily said it will do — and stricter limitations on how long collected metadata may be stored.
benton.org/node/161155 | Washington Post
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HERE’S HOW RON WYDEN WANTS TO REIN IN THE NSA
[SOURCE: Washington Post, AUTHOR: Timothy Lee]
A bipartisan group of senators led by Sen. Ron Wyden (D-OR) announced a new proposal to overhaul the nation's surveillance laws. The other co-sponsors are Sen. Mark Udall (D-CO), Sen. Richard Blumenthal (D-CT), and Sen. Rand Paul (R-KY). The legislation's text has not been released yet, but here's what the senators say they hope to accomplish: 1) End bulk collection of Americans' communications records. 2) Limit the legal authority for the PRISM program. 3) Reform the secret surveillance court (Foreign Intelligence Surveillance Court). 4) Increase transparency. The proposal is not as ambitious as Rep. Rush Holt (D-NJ)’s proposal to repeal the Patriot Act and FISA Amendments Act altogether. But it would impose significant new limits on the government's domestic spying powers.
benton.org/node/161134 | Washington Post
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WYDEN HINTS THAT NSA TRACKED LOCATIONS FOR MILLIONS OF CELLPHONES
[SOURCE: The Hill, AUTHOR: Brendan Sasso]
Sen. Ron Wyden (D-OR) suggested that the National Security Agency tracked or considered tracking the cellphone location data of millions of people in the United States. During a Senate Intelligence Committee hearing, Sen. Wyden asked NSA Director Gen. Keith Alexander whether "the NSA has ever collected — or made any plans to collect — Americans' cell site information in bulk." When Gen. Alexander denied that the NSA was collecting cell site location data, Sen. Wyden cut him off, saying the NSA chief was not answering his question. Sen. Wyden repeated his inquiry, emphasizing whether the NSA has "ever" collected cell site location data, and the NSA director responded, “What I don't want to do, senator, is to put out in an unclassified forum on anything that's classified here."
benton.org/node/161153 | Hill, The
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KEITH ALEXANDER: IN BEST INTEREST OF US TO 'PUT ALL THE PHONE RECORDS' INTO A SEARCHABLE 'LOCKBOX'
[SOURCE: Huffington Post, AUTHOR: Paige Lavender]
National Security Agency Director Keith Alexander said the NSA wants to collect more phone records, even after being the subject of recent public unease. Sen. Mark Udall (D-CO) asked Gen. Alexander if the NSA wants "the phone records of all Americans" during a congressional hearing. "I believe it is in the nation's best interest to put all the phone records into a lockbox that we can search when the nation needs to do it, yes," Gen. Alexander replied.
benton.org/node/161163 | Huffington Post
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SHUTDOWN UNLIKELY TO STOP NSA SPYING
[SOURCE: The Hill, AUTHOR: Brendan Sasso]
A government shutdown, set for Oct 1 if lawmakers fail to strike a deal, would be unlikely to impede the National Security Agency's surveillance programs. The Defense Department is set to release its plan for how to handle a potential shutdown. That plan is expected to be similar to one the department released in 2011 ahead of another congressional showdown that ultimately resulted in a deal to keep the government running. The 2011 plan, outlined in a memo by then-Deputy Secretary of Defense William Lynn, exempted activities necessary for "protection of life and property." The exemption covered "intelligence, surveillance and reconnaissance activities required to support national or military requirements necessary for national security," according to the memo.
benton.org/node/161131 | Hill, The
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SENATORS LASH OUT AT THE MEDIA OVER PUBLIC'S NSA OPPOSITION
[SOURCE: Huffington Post, AUTHOR: Jack Mirkinson]
Many members of the Senate Intelligence Committee who gathered for a hearing on the National Security Agency had harsh words for a foe they thought had deceived the American public and spread mistrust about US intelligence methods. If you were thinking that foe was the NSA itself, you'd be wrong. It was the media! Multiple senators, while defending the NSA's tactics and surveillance programs, made sure to get a dig in at those awful people in the media who revealed those tactics to the world.
benton.org/node/161161 | Huffington Post
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INTERNET/BROADBAND
SURVEY: BROADBAND PENETRATION PASSES THREE QUARTER MARK
[SOURCE: Leichtman Research Group, AUTHOR: Press release]
New consumer research from Leichtman Research Group found that about 78% of US households get a broadband Internet service at home. Broadband now accounts for 94% of all households with Internet service at home -- an increase from 92% last year, 75% in 2008, and 33% in 2004. Overall, 83% of households get an Internet service at home, and 55% of adults access the Internet on a Smartphone. While the percentage households getting Internet service at home is similar to last year, those accessing the Internet on a Smartphone increased from 44% last year. Other related findings include:
9% of all households get broadband, but do not subscribe to a multi-channel video service -- compared to 8% the past two years
64% of broadband subscribers also access the Internet on a Smartphone -- compared to 52% last year
19% of all not online at home access the Internet on a Smartphone -- compared to 12% last year
1% of households paid to subscribe to Internet service at home in the past year, do not currently subscribe, and do not plan to subscribe again in the next six months
Less than 1% of all online households say that broadband is not available in their area -- compared to 6% in 2008
42% of households with annual incomes <$30,000 do not use a laptop or desktop computer at home -- compared to 8% with incomes >$30,000
1% of all households have an iPad or tablet, but do not use a desktop or laptop computer
benton.org/node/161130 | Leichtman Research Group
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BLOCKING NETWORK NEUTRALITY
[SOURCE: ars technica, AUTHOR: Cyrus Farivar]
Only those who are following the ins and outs of the latest round of Washington (DC) shenanigans might know that the American federal government is likely to shut down next week as the result of a Republican-led political tactic. The House of Representatives majority party continually refuses to vote to raise the debt ceiling, a limit on how much debt the American government can incur. The Republican leadership has apparently leaked a document with a laundry list of political demands that it wants in exchange for approving a debt ceiling raise. Even stranger, among a long list of demands is this curious line: “Blocking Net Neutrality.”
benton.org/node/161195 | Ars Technica
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CONTENT
SUFFOCATING ECHO CHAMBER
[SOURCE: New York Times, AUTHOR: Nicholas Kristof]
[Commentary] In the 1990s, as conservative talk radio spread across America, liberals felt victimized. But, in retrospect, the rise of talk radio, Fox News Channel and right-wing Web sites may have done greatest harm to conservatives themselves. The right-wing echo chamber breeds extremism, intimidates Republican moderates and misleads people into thinking that their worldview is broadly shared. That’s the information bubble that tugs the entire Republican Party to the right and that transforms people like Sen Ted Cruz (R-TX) into crusading Don Quixotes. And that’s why Republicans may lead us over a financial cliff, even though polling suggests that voters would blame them.
benton.org/node/161172 | New York Times
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EA CANCELS NEXT YEAR’S COLLEGE FOOTBALL GAME
[SOURCE: Wall Street Journal, AUTHOR: Ian Sherr]
Electronic Arts said it is canceling its college football game, adding that it is uncertain about the future of the franchise amid continued legal acrimony between the National Collegiate Athletic Association and student players. The game maker made the decision after running afoul of a dispute between the NCAA and students who have been seeking a share of NCAA revenues for the use of their images and likenesses. EA each year produces an NCAA-branded game, much like the ones it makes under other banners like the National Football League. They are known for their attempts to recreate game-play, down to individual athletes’ likenesses, various playing styles and statistics. “For our part, we are working to settle the lawsuits with the student-athletes. Meanwhile, the NCAA and a number of conferences have withdrawn their support of our game,” said Cam Weber, head of EA’s American football games.
benton.org/node/161159 | Wall Street Journal | Reuters
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FIFTEEN YEARS IN, GOOGLE REVAMPS ITS SEARCH ALGORITHM AND CELEBRATES ITS ROOTS
[SOURCE: Wall Street Journal, AUTHOR: Liz Gannes]
Google has “changed engines midflight,” search leader Amit Singhal announced. Not that anyone noticed, or that Google can even describe what changed in layman’s terms. But recently, the company swapped out its search-ranking algorithm for a new one, code-named Hummingbird that can handle more complex queries faster. “People are trusting search more,” Singhal explained at an event at the original Google worldwide headquarters in Menlo Park, CA. That trust, Singhal went on to say, results in Google users asking longer and more complicated queries. Where the Boolean this-or-that style of search used to work fine with words and documents, it deteriorated with concepts and relationships, Singhal said. For instance, users will now be able to enter queries like “compare Earth and Neptune” and get structured charts about the various measurements and features of the planets. Or “compare coconut oil and olive oil” and see their relative nutritional information.
benton.org/node/161142 | Wall Street Journal
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PRIVACY
WIRETAPPING LAWS APPLY TO GOOGLE INTERCEPTING EMAILS, FEDERAL JUDGE SAYS
[SOURCE: The Hill, AUTHOR: Kate Tummarello]
Google’s practice of intercepting users’ emails is subject to state and federal wiretapping laws, a federal ruled. Google’s intercepting users’ e-mail to better target advertising is not exempted under wiretapping laws, Judge Lucy Koh said, rejecting in part Google’s attempt to have a class action suit over its intercepting practices dismissed. “The alleged interception of emails at issue here is both physically and purposively unrelated to Google’s provision of email services,” Judge Koh wrote, meaning it does not fall under wiretapping law exemptions for necessary business practices. Non-Gmail users have given even less consent, Judge Koh said, rejecting Google’s notion that “by merely sending emails to or receiving emails from a Gmail user, a non-Gmail user has consented to Google’s interception of such emails for any purposes.” In a statement, a Google spokesman said the company is “disappointed in this decision and ... considering our options.”
benton.org/node/161156 | Hill, The
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GOOGLE AND COOKIES
[SOURCE: Wall Street Journal, AUTHOR: John Bussey]
[Commentary] Is Google about to do to online privacy what body scanners did to airline travelers? It might seem that way given the reaction to a bit of news that, intentionally or not, leaked out of Google last week. Google is considering using anonymous identifiers to track consumers' browsing habits online. This technology could eventually take the place of the controversial "cookies" that marketing outfits now plant on our computers to track where we go on the Web and then pitch us related products. Google called any move good for "users' security" and the economics of the Internet. It said its concepts are at a very early stage and declined further comment. Still, what might seem like just another incremental tech development set off alarms, and a lot of speculation, among privacy advocates and advertising firms. The reason, of course, is Google's dominance in our online lives.
benton.org/node/161189 | Wall Street Journal
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STORIES FROM ABROAD
CHINA'S LIFTING OF INTERNET BLOCKADE DENIED BY STATE MEDIA
[SOURCE: The Register, AUTHOR: Phil Muncaster]
Hopes that the Chinese government was about to relax its strict internet censorship regime in Shanghai appear to have been dashed after state-run media ran stories denying previous reports. An “exclusive” from Hong Kong’s South China Morning Post, referencing anonymous government sources, claimed that the Great Firewall would be lifted inside the new Shanghai Free Trade Zone (FTZ). The mooted plan, which would have allowed access to blocked sites such as Facebook and Twitter, was said by one source to help foreigners working in the zone to “feel like at home.” However, Communist Party mouthpiece the People’s Daily has hit back, claiming from its own unnamed sources that the story is not correct, and that “internet management measures” inside the zone will not be any different from those elsewhere in China. In the meantime, multinational corporations and employees in the People’s Republic will just have to rely on that old staple the VPN for access to an unfettered internet, or check-in to a luxury hotel, most of which offer the same for tourists.
benton.org/node/161122 | Register, The
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VODAFONE DEAL’S IMPACT IN EUROPE
[SOURCE: Financial Times, AUTHOR: Daniel Thomas, Anousha Sakoui]
The British government is not alone in hoping that Vodafone shares the proceeds of the $124 billion raised through the sale of its stake in Verizon Wireless by embarking on acquisitions of its own. Many bankers believe that the European telecoms sector will be shaken up by the deal, the third biggest in corporate history ($130 billion including the value of Verizon’s stake in Vodafone Italy given to Vodafone as part of the disposal), not least given the heightened expectation of interest from AT&T in a more European-focused Vodafone. Such expectations have been fanned by comments by AT&T chief executive Randall Stephenson that the company remained interested in European telecoms deals. This year has been dominated by dealmaking by the technology, media and telecommunications (TMT) sector, a key driver of the upward trend in global M&A. It is a development many bankers say is set to persist. The $438 billion of deals done in the sector is at a six-year high – about 38 percent higher than the total deals announced in 2012, according to Mergermarket. The sector accounted for nearly a third of all deals globally in the year to date. Verizon’s acquisition added a third to TMT M&A. Seven of the top deals this year so far have featured TMT companies. Even without Verizon’s acquisition – the biggest for a decade – TMT would still have accounted for the sector with the largest increase at 52.3 percent year on year.
benton.org/node/161181 | Financial Times
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