November 2013

House Communications and Technology Subcommittee Continues Oversight of FirstNet

The House Subcommittee on Communications and Technology, chaired by Rep. Greg Walden (R-OR), continued its oversight of the development and build out of FirstNet and other emergency communications networks.

FirstNet is a nationwide, interoperable broadband public safety network created by the Middle Class Tax Relief and Job Creation Act of 2012. Members heard from FirstNet and private sector entities that are working to implement this nationwide public safety network. The hearing also reviewed other emergency communications technologies to better understand how their development can improve the capabilities of first responders across the nation. “While there is significant work to be done to ensure that the states are partners, not customers, of FirstNet, it appears that FirstNet has made progress in reaching out to state, tribal, and local jurisdictions along these lines,” explained Chairman Walden. “We cannot afford to have this effort fail to produce a network, or worse, have this network deployed and then have no one show up to use it.” He added, “Today, we are asking our witnesses ’what is working, what isn’t working, and how can we help?’”

Educators Weigh iPad's Dominance of Tablet Market

Apple’s iPads command nearly 94 percent of the tablet market in K-12 schools, according to Tom Mainelli, the research director focusing on the tablet market for IDC Research. By the end of 2013, total shipments for tablet computing devices in the US education marketplace are expected to exceed 3.5 million units -- a 46 percent increase over 2012, indicated Mainelli, who explained that the research is proprietary and declined to name the runners-up in the tablet race. The figure covers tablets in higher education and K-12, but colleges and universities account for a much smaller proportion because, at that level, most are personal devices. Education’s contribution to Apple is also noteworthy: The company set a record in education sales for the fourth quarter, generating $1 billion in revenue with sales of its iOS and Mac products.

LightSquared Plans May Not Work, U.S. Trustee Says

LightSquared, Philip Falcone’s bankrupt wireless spectrum company, may not have a feasible plan to reorganize, the US Trustee said in an objection to all four competing proposals. Three plans include a sale of some company assets, while a fourth proposes a reorganization. None of them may work given regulatory hurdles in the US and Canada, as well as the plans’ failure to comply with the Bankruptcy Code, Tracy Hope Davis, the acting US Trustee, said in a court filing.

November 25, 2013 (Bids for Time Warner Cable)

BENTON'S COMMUNICATIONS-RELATED HEADLINES for MONDAY, NOVEMBER 25, 2013

Each Friday, Headlines looks at the top stories of the week – see http://benton.org/headlines/weekly-roundup


GOVERNMENT & COMMUNICATIONS
   Shaken NSA Grapples With an Overhaul
   NSA Report Outlined Goals for More Power
   Web report criticizes US and UK over surveillance as UN privacy resolution weakened
   Berners-Lee: Insidious government surveillance may be worse than outright censorship
   Inside America's Plan to Kill Online Privacy Rights Everywhere - analysis
   ACLU, DOJ face off over phone surveillance
   House panels battle over NSA
   Senators ask DOJ to come clean on Supreme Court surveillance case [links to web]
   House panel approves spying bill, targets leaks [links to web]
   House NSA bill to skip committee [links to web]
   Coalition urges congressional leaders to support NSA curbs [links to web]
   Media protests White House photo ban [links to web]
   White House Pic of the Day of Media Enrages Media [links to web]
   Backlash: Commercial and diplomatic spillovers from the NSA revelations - AEI op-ed [links to web]
   ProPublica FOIAs for NSA surveillance info [links to web]
   We are becoming police states. Everyone OK with that? - analysis [links to web]
   The new town square is virtual, and government needs to set up shop there - op-ed [links to web]
   Utah Legislature Embraces Voluntary Open Email Policy [links to web]

OWNERSHIP
   Washington Consumer Groups Question Comcast’s Reported Bid for Time Warner Cable
   Rivals Circle Time Warner Cable for Possible Takeover
   Time Warner Cable’s Suitors Lining Up Funds for Bid [links to web]
   Do the TWC / Comcast rumors signal a cable rollup? Let’s hope so! - AEI op-ed [links to web]
   Will Regulators Put the Kibosh on Cable Consolidation? - analysis
   Cable consolidation isn’t about TV: It’s about broadband - analysis
   Once Cable’s King, Malone Aims to Regain His Crown [links to web]
   Signs of Change in News Mission at Bloomberg [links to web]
   NBCUniversal to Buy Stake in AllThingsD Founders’ New Venture [links to web]

TELEVISION/RADIO
   Comcast to Introduce $1.50 Broadcast TV Fee
   Low Numbers for Low Power - analysis
   NAB's CEO Slams Genachowski's FCC Tenure
   Amateur Radio Association Seeks Faster Data Speeds - analysis [links to web]
   Television now 55% digital as analogue broadcasting switch-off advances worldwide - ITU press release [links to web]

WIRELESS/SPECTRUM
   White House backs spectrum caps
   Sen. Schumer to FCC: Don't Limit Wireless Bidders [links to web]
   US To Consider Cellphone Use On Planes
   FCC sees backlash after proposing to allow in-flight cellphone calls on planes
   Chairman Wheeler: Airlines Make Call About In-Flight Phones
   Everything you need to know about in-flight cellphone rules - analysis [links to web]
   The FCC makes the right call on cellphones on planes - editorial
   After backlash on plan to allow in-flight calls, FCC chief backs off
   In-Flight Phone Etiquette: Experts Offer Suggestions [links to web]
   Southwest to Be First With Gate-to-Gate Wi-Fi Service [links to web]
   Deloitte: 41% of U.S. Consumers Would Pay More for Higher Wireless Speeds [links to web]
   Parks: 1/3 of Broadband Households Interested in a Connected-Car [links to web]
   Auction Action, AM Style [links to web]
   Amateur Radio Association Seeks Faster Data Speeds - analysis [links to web]

ELECTIONS AND MEDIA
   FEC: No bitcoins in federal campaigns
   Here’s how Bitcoin charmed Washington - analysis [links to web]
   State Broadcasters Ask FCC to Defer Political File Posting Deadline [links to web]

INTERNET/BROADBAND
   Fed up with slow and pricey Internet, cities start demanding gigabit fiber [links to web]
   Connect Minnesota Releases New Broadband Availability Data - press release [links to web]

CONTENT
   Numbers Game -- Content Still Holds the Throne. But Where are the Loyal Subjects? - op-ed [links to web]
   A Little Victory Dance over the Google Books Win - press release [links to web]
   Bloggers, WordPress stand up to fight questionable DMCA takedown notices [links to web]

PRIVACY
   Washington’s overall take on data brokers muddled [links to web]

EDUCATION
   FCC’s Rosenworcel Joins President to Promote High-Speed Access For Education [links to web]

PATENTS
   Jury awards Apple $290 million in Samsung patent case [links to web]

EMERGENCY COMMUNICATIONS
   Corporation for Public Broadcasting Awards Emergency Alert and Communication Grants to Five Public Media Stations - press release [links to web]
   Spotting the Trends in Disaster Tweets [links to web]
   Pummeled by Sandy, New Jersey County Delivers Emergency App to Residents [links to web]
   IBM and Some College Students Aim to Simplify Data Center Disaster Planning [links to web]

GOVERNMENT PERFORMANCE
   A Closer Look at Healthcare.gov’s Still-Unbuilt 30 Percent [links to web]
   How HealthCare.gov Is Giving A Once-Obscure Bill A Boost [links to web]
   Can These Entrepreneurs Solve The Intractable Problems Of City Government? [links to web]

CYBERSECURITY
   Immediate Opportunities for Strengthening the Nation's Cybersecurity
   Inaugural Meeting of the U.S.-Russia Bilateral Presidential Commission Working Group on Threats to and in the Use of Information and Communication Technologies - press release [links to web]
   Why the US needs a cyber doctrine - op-ed [links to web]
   Forward Secrecy at Twitter [links to web]
   Microsoft Bringing Message Encryption To Office 365 In Early 2014 [links to web]

LOBBYING
   Paying Your Cable Bill Helps Shower Millions on DC Fatcats Working Against Your Interests - editorial
   Here’s how Bitcoin charmed Washington - analysis [links to web]
   Chairman Wheeler Meets with Trade Association Chiefs [links to web]
   NAB's Smith: Wheeler Open To Study Promoting Broadcast Innovation, Investment [links to web]

AGENDA
   Incentive Auction Rules Vote Not On FCC December Agenda

STORIES FROM ABROAD
   Public Interest Advocates Send Letter to World Leaders Urging Transparency in Trans-Pacific Partnership Agreement Negotiations - press release [links to web]
   Ofcom signals boost for UK mobile broadband [links to web]
   European telecoms revenue fall accelerates [links to web]
   The quest to build an NSA-proof cloud [links to web]
   Television now 55% digital as analogue broadcasting switch-off advances worldwide - ITU press release [links to web]

MORE ONLINE
   Is the tide turning? Women filled 60% of tech jobs created this year [links to web]

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GOVERNMENT & COMMUNICATIONS

NSA OVERHAUL
[SOURCE: Wall Street Journal, AUTHOR: Siobhan Gorman]
Shortly after former government contractor Edward Snowden revealed himself in June as the source of leaked National Security Agency documents, the agency's director, Gen. Keith Alexander, offered to resign, according to a senior US official. The offer, which hasn't previously been reported, was declined by the Obama Administration. But it shows the degree to which Snowden's revelations have shaken the NSA's foundations -- unlike any event in its six-decade history, including the blowback against domestic spying in the 1970s. The post-Snowden era has forced a major re-evaluation of NSA operations by the administration and on Capitol Hill, and the review is likely to alter the agency's rules of the road. "It was cataclysmic," Richard Ledgett, who heads a special NSA Snowden response team, said of the disclosures. "This is the hardest problem we've had to face in 62 years of existence." Broad new controls, though, run the risk of overcorrecting, leaving the agency unable to respond to a future crisis, critics of the expected changes warn.
benton.org/node/168248 | Wall Street Journal
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NSA REPORT
[SOURCE: New York Times, AUTHOR: James Risen, Laura Poitras]
Officials at the National Security Agency, intent on maintaining its dominance in intelligence collection, pledged last year to push to expand its surveillance powers, according to a top-secret strategy document. In a February 2012 paper laying out the four-year strategy for the NSA’s signals intelligence operations, which include the agency’s eavesdropping and communications data collection around the world, agency officials set an objective to “aggressively pursue legal authorities and a policy framework mapped more fully to the information age.” Written as an agency mission statement with broad goals, the five-page document said that existing American laws were not adequate to meet the needs of the NSA to conduct broad surveillance in what it cited as “the golden age of Sigint,” or signals intelligence. (Nov 22)
benton.org/node/168247 | New York Times
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WEB REPORT CRITICIZES US AND UK OVER SURVEILLANCE AS UN PRIVACY RESOLUTION WEAKENED
[SOURCE: GigaOm, AUTHOR: David Meyer]
The World Wide Web Foundation (WWWF) has published its second annual Web Index survey and, while the US and UK rank third and fourth for their overall web-friendliness (behind Sweden and Norway), they take quite a dive when it comes to online surveillance. In the report’s “freedom and openness” ranking, the UK has 24th place and the US 27th -- just behind Costa Rica. The report notes that developing countries are more likely to censor online content, but developed countries are “far more likely to spy” on online communications. At the United Nations, the US, UK and Australia managed to soften the language of the new “right to privacy in the digital age” resolution that was co-sponsored by Brazil and Germany (both of which suddenly got angry about surveillance when it turned out their leaders were being targeted). The latest text states that the UN General Assembly is “… deeply concerned at the negative impact that surveillance and/or interception of communications, including extraterritorial surveillance and/or interception of communications, as well as the collection of personal data, in particular when carried out on a mass scale, may have on the exercise and enjoyment of human rights”. According to the Guardian , espionage partners the US, UK and Australia were “isolated” in their quest to soften the resolution’s phrasing. They did manage to excise an explicit reference to extraterritorial surveillance being a “human rights violation”. However, the “extraterritorial surveillance” phrase survived, so the resolution still says people have a right to privacy even if they’re spied on by another country. (Nov 22)
benton.org/node/168211 | GigaOm
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BERNERS-LEE: INSIDIOUS GOVERNMENT SURVEILLANCE WORSE THAN OUTRIGHT CENSORSHIP
[SOURCE: Wired, AUTHOR: Liat Clark]
The insidious nature of government spying has a chilling and subtle effect on Web freedoms that could ultimately be more damaging to society than outright censorship, World Wide Web creator Tim Berners-Lee told the audience at the launch of the World Wide Web Foundation's 2013 Web Index findings. The legacy of the revelations made by whistleblower Edward Snowden into the actions of national security agencies (the NSA, GCHQ, and others) will be long-lasting, intimated Berners-Lee. While nations such as China openly engage in censorship, what the US and the UK have done could potentially leave a trail of paranoia that in turn leads to a trend for self-censorship among citizens of the allegedly "free" West. This year's Web Index was finished in September 2013, so Berners-Lee suggests some countries may have ranked even lower considering the revelations of the past few months. The US and the UK predictably fell a few spots down the table on the sub-index Freedom and Openness. Though the UK came out third overall, one spot ahead of the US, it came 24th for Freedom and Openness. It came eighth for Universal Access, first for Relevant Content, and third for Empowerment. (Nov 22)
benton.org/node/168226 | Wired
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INSIDE AMERICA'S PLAN TO KILL ONLINE PRIVACY RIGHTS
[SOURCE: Foreign Policy, AUTHOR: Colum Lynch]
The United States and its key intelligence allies are quietly working behind the scenes to kneecap a mounting movement in the United Nations to promote a universal human right to online privacy, according to diplomatic sources and an internal American government document. The diplomatic battle is playing out in an obscure United Nations General Assembly committee that is considering a proposal by Brazil and Germany to place constraints on unchecked Internet surveillance by the National Security Agency and other foreign intelligence services. American representatives have made it clear that they won't tolerate such checks on their global surveillance network. The stakes are high, particularly in Washington -- which is seeking to contain an international backlash against NSA spying -- and in Brazil, where Brazilian President Dilma Roussef is personally involved in monitoring the UN negotiations. A final version the text is scheduled to be presented to UN members and the resolution is expected to be adopted soon. (Nov 20)
benton.org/node/168180 | Foreign Policy |
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ACLU, DOJ FACE OFF OVER PHONE SURVEILLANCE
[SOURCE: The Hill, AUTHOR: Kate Tummarello]
The American Civil Liberties Union and the US government faced off in federal court over the constitutionality of the government’s surveillance programs. The surveillance program at the heart of the case is the government’s use of Section 215 of the Patriot Act to collect of data about all US phone calls. The civil liberties group ARGUED “that the mass call-tracking program violates Americans' constitutional rights of privacy, free speech, and association, and that it goes far beyond what Section 215 authorizes.” Stuart Delery, an attorney for the Department of Justice, defended the value and legality of the mass phone data collection, saying it is “authorized by statute, and it's constitutional.” ACLU Deputy Legal Director Jameel Jaffer challenged the authorization of the program. "If you accept the government's argument, you are accepting a dramatic expansion in the government's investigative power," he said. (Nov 22)
benton.org/node/168228 | Hill, The | ACLU | The Verge | AP
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HOUSE PANELS BATTLE OVER NSA
[SOURCE: The Hill, AUTHOR: Brendan Sasso]
Two House committees are battling over the path forward for legislation to reform the National Security Agency. Both the Intelligence Committee and the Judiciary Committee have claim to jurisdiction over the government's surveillance programs. The leaders of the Intelligence Committee want to preserve the NSA's sweeping powers, while Judiciary members are likely to push legislation that will more aggressively rein it in. The House Intelligence Committee had planned to vote on an NSA reform bill, but the Republican leadership intervened and had the mark-up canceled. A congressional aide told The Hill that House leaders had stepped in because they wanted to move the Intelligence Committee's NSA bill directly to the floor. But it is now unclear whether leadership has made any decisions about which committee's bill will receive a floor vote. A House leadership aide said only that "leadership is working to ensure that there is a well-coordinated process." (Nov 21)
benton.org/node/168215 | Hill, The
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OWNERSHIP

COMCAST-TIME WARNER CABLE?
[SOURCE: The Wrap, AUTHOR: Tim Molloy, Ira Teinowitz]
A report that Comcast is considering bidding for Time Warner Cable drew immediate concerns from consumer groups in Washington, who worry that a combined cable behemoth could raise prices to consumers, reduce their video choices and potentially eliminate the web as a competitor. The consumer groups suggested that such a deal would likely violate both antitrust and federal communications laws. “Already you can’t launch a new channel without Comcast,” said Matt Wood, policy director for Free Press, a consumer group active in media consolidation fights. “This would give them so much more power.” Wood said a Comcast purchase would also reduce “the chance of effective competition” to cable from Internet video sources. Mark Cooper, research director for the Consumer Federation of America, said a Comcast purchase would effectively create a cable “monopsony,” giving Comcast control not only over which cable channels are successful, but access to the web in parts of the nation. “They would have sufficient share that their buying practice could disrupt the market,” he said. A channel that couldn’t get on Comcast wouldn’t be able to survive. “This is a merger that raises fundamental Communications Act and Sherman Act issues,” he said referring to laws overseen by the Federal Communications Commission and the Justice Department, respectively. “There is no avoiding it.” Both questioned whether a Comcast purchase would pass regulatory muster. (Nov 22)
benton.org/node/168233 | Wrap, The
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TIME WARNER CABLE HAS REACHED OUT TO COMCAST TO DISCUSS DEAL
[SOURCE: Wall Street Journal, AUTHOR: Shalini Ramachandran, Dana Cimilluca, Brent Kendall]
Apparently, Time Warner Cable has reached out to Comcast to discuss a possible combination in recent months, in an effort by Time Warner Cable to head off a bid from Charter Communications and its largest shareholder, Liberty Media. The two companies aren't in "active discussions" but the two companies have had similar discussions off and on over the past several years. A combination of Comcast and Time Warner Cable would likely undergo intense regulatory scrutiny, as Comcast is the No. 1 cable operator, serving nearly 22 million television subscribers while Time Warner Cable is the second biggest, serving more than 11 million. Charter Communications is nearing an agreement with banks to borrow money for a bid for Time Warner Cable. Cable operators don't directly compete with each other, however, and the Federal Communications Commission doesn't have a limit on how big cable operators can be. There likely would be antitrust obstacles, however, particularly given the leverage a Comcast-Time Warner Cable would have over content providers and in the market for broadband. (Nov 22)
benton.org/node/168232 | Wall Street Journal | Bloomberg | Multichannel News | Huffington Post
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WILL REGULATORS OK CABLE CONSOLIDATION?
[SOURCE: AdWeek, AUTHOR: Sam Thielman]
[Commentary] There's a reason Time Warner Cable looks like the prettiest girl at the dance: it has 11.6 million subscribers and is in hot water with its shareholders, largely because it lost some 306,000 of those paying customers during its month-long beef with CBS. That cost the company some $122 million, but TWC's revenue is still $2.6 billion -- not exactly a distressed asset. As the cable market matures and threatens to shrink, consolidation has become a serious proposition for companies looking to shed money-sucking bureaucracies and pare down infrastructures across as many subscribers as possible. It remains to be seen whether Washington will be excited to see another merger between giant service providers in an industry already criticized for creating regional monopolies. The last time Comcast wanted to do something like this -- when it merged with media giant NBCUniversal -- it attracted further criticism when, after the deal was approved, then-commissioner Meredith Baker jumped ship to a consultancy job at the newly-formed mega-corporation. If Comcast wants to buy TWC, it's a safe bet that it will have a tougher row to hoe than Charter. (Nov 22)
benton.org/node/168230 | AdWeek
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CABLE CONSOLIDATION ABOUT BROADBAND
[SOURCE: GigaOm, AUTHOR: Stacey Higginbotham]
[Commentary] This is an opportune time for the cable industry to consolidate given the demand for broadband generated by over-the-top services such as Netflix and Hulu. The cable guys don’t compete against each other in a given geographic footprint, but instead, against the telcos. And when it comes to broadband, the telcos are losing. So the cable industry, if it can consolidate, gets access to the most important pipe coming into people’s homes (after power and water) and the fewer cable companies there are, the more unified the rate structure might appear. So today Comcast has a broadband data cap, but Time Warner Cable doesn’t. However, if Time Warner Cable gets bought by Comcast or Charter, both of which have caps, that unlimited broadband from TWC goes by the wayside. But consolidation in cable is going to take a lot of creativity, as the regulatory environment is unclear. Comcast may be looking for ways to swallow Time Warner Cable or Liberty Media’s John Malone may make his play with Charter, but whatever deal goes down, the Department of Justice and other regulators will want to have a say. And no one is clear exactly what that say might be yet. (Nov 22)
benton.org/node/168243 | GigaOm
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TELEVISION/RADIO

COMCAST TO INTRODUCE $1.50 BROADCAST TV FEE
[SOURCE: Multichannel News, AUTHOR: Mike Farrell]
Comcast is striking back at the high cost of retransmission consent by separating out a $1.50 per month “Broadcast TV Fee” on customer bills. The move is a departure from how the nation’s largest cable operator had previously offset some of the costs of retransmission -- by including a portion of them within the overall charges for video. Now Comcast seems to be joining other MSOs in taking the offensive by breaking out those charges for customers to see. In a letter to Comcast subscribers in its Heartland Region (which includes Michigan, Indiana and Arkansas), Comcast said the $1.50 charge will begin on Jan. 1, 2014. In the letter, Heartland Region senior manager of government affairs Frederick Eaton writes that the fee is to “defray the rising costs of retransmitting broadcast television signals.” “In the past, a portion of those costs were included within the basic service rate,” Eaton continued. “In recent years, the cost of retransmitting broadcast television signals has increased significantly, and we want to address these increases through a separate itemized charge so they are clear to the customer.” (Nov 22)
benton.org/node/168224 | Multichannel News
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LOW NUMBERS FOR LOW POWER
[SOURCE: CommLawBlog, AUTHOR: Harry Cole]
[Commentary] The total number of LPFM applications filed appears to be vastly below the worst-case scenarios that a number of observers had feared. Why was the final number so small compared with the pre-window speculation? It’s impossible to say right now, and we may never know for sure. But the fewer LPFM applications that got filed in this go-round, theoretically the more opportunities for FM translators still exist -- and that could bode well for AM folks, should the AM revitalization proceeding lead to an AM-only window for new FM translators. (Nov 22)
benton.org/node/168216 | CommLawBlog
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NAB SLAMS GENACHOWSKI’S FCC TENURE
[SOURCE: TVNewsCheck, AUTHOR: Harry Jessell]
At a Media Institute luncheon, National Association of Broadcasters President Gordon Smith blasted former Federal Communications Commission Chairman Julius Genachowski for his single-minded obsession with fostering wireless broadband and called on current FCC Chairman Tom Wheeler "to put as much effort into ensuring our world leadership in broadcast as he does in broadband." Smith urged Chairman Wheeler to "meaningfully and efficiently review" the broadcast ownership limits so station can compete better, to allow "flexibility" in broadcast networks and to preserve broadcasters' retransmission consent rights. Smith rebuked the "myopic" Genachowski FCC for doing whatever it could for wireless broadband, while ignoring broadcasting, despite all the public good that it does. Last March after he announced his intention to leave the agency, Chairman Genachowski, Smith said, released a list of his accomplishments. "It catalogued approximately 50 items, including proceedings undertaken and industry investments. What I found most notable about the list was that there was not a single accomplishment outside of the broadband realm. Not one. And there was no mention of the ways in which the commission helped support the U.S. broadcast industry in its mission of serving every local community." (Nov 21)
benton.org/node/168193 | TVNewsCheck
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WIRELESS/SPECTRUM

WHITE HOUSE BACKS SPECTRUM CAPS
[SOURCE: The Hill, AUTHOR: Brendan Sasso]
Tom Power, the Deputy Chief Technology Officer for Telecommunications in the White House Office of Science and Technology Policy, urged the Federal Communications Commission to consider limiting the ability of Verizon and AT&T to bid in an upcoming auction of airwave licenses. Speaking at an event on Capitol Hill, Power dismissed that there was ever a question about where the Obama Administration stood on the issue. He noted that the Justice Department's Antitrust Division submitted a letter to the FCC arguing that caps may be necessary to preserve competition in the wireless industry. Verizon, AT&T and Republican lawmakers argue that the FCC should hold an unrestricted auction that allows all carriers to fully participate. They argue that caps or limits on the largest carriers would suppress government revenue and unfairly favor the smaller carriers. But citing DOJ's analysis, Power warned that the largest carriers may be willing to pay a premium for spectrum -- the wireless frequencies that carry cellphone signals -- in order to block their competitors and suppress competition. Weaker competition would lead to higher prices for consumers, he said. (Nov 21)
benton.org/node/168192 | Hill, The
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FCC TO CONSIDER CELLPHONE USE ON PLANES
[SOURCE: Wall Street Journal, AUTHOR: Ryan Knutson, Gautham Nagesh, Jack Nicas]
The Federal Communications Commission will propose allowing passengers to use their cellphones on airplanes, setting up a debate that will pit the technically possible against the socially tolerable. While phone use would still be restricted during takeoff and landing, the proposal would lift an FCC ban on airborne calls and cellular data use by passengers once a flight reached 10,000 feet. The FCC move would lift a regulatory hurdle, but any use of cellphones on planes would still have to be approved by the airlines, which have said they would approach the issue cautiously due to strong objections from their customers. Airlines would ALSO have to install equipment in their planes that would communicate with cellphone towers on the ground. The FCC proposal is scheduled to be discussed at the commission's December 2013 meeting. The proposal will be published as a Notice of Proposed Rule Making, and the agency will invite comments on it before making a final decision. The entire process could take months. (Nov 21)
benton.org/node/168194 | Wall Street Journal | | Washington Post | GigaOm | The Verge | FCC News Release | FCC
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FCC SEES BACKLASH AFTER PROPOSING TO ALLOW IN-FLIGHT CELLPHONE CALLS
[SOURCE: Washington Post, AUTHOR: Cecilia Kang]
The Federal Communications Commission will consider rules that would allow air travelers to make calls and use their cellular data plans once a plane reaches 10,000 feet. The proposal has the backing of the agency’s newly appointed chairman. But the idea is bound to be controversial. Within hours of the announcement, consumers flooded the agency with protests. One FCC commissioner received hundreds of e-mails complaining that the move would lead to unbearable noise pollution, an aide said. Passengers are already crammed into smaller seats and tighter rows, and being forced to listen to one another’s calls would be yet another indignity, they wrote. A petition quickly went up on the White House Web site, asking the Obama Administration to stop the effort. “This would make an already cranky, uncomfortable travel experience exponentially worse, and as a frequent flier and concerned citizen, I think the Administration needs to nip this in the bud,” a resident from Richmond wrote. (Nov 21)
benton.org/node/168213 | Washington Post
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CHAIRMAN WHEELER: AIRLINES MAKE CALL ABOUT IN-FLIGHT PHONES
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
Federal Communications Commission Chairman Tom Wheeler said the FCC was leaving it up to airlines whether to allow voice connectivity in-flight, saying the FCC's proposal to update its rules was about the lack of technical impediments to mobile devices using aircraft onboard wireless systems. Chairman Wheeler issued a statement in the wake of criticism, or at least cautionary concern, about his proposal to update rules on allowing wireless device use in-flight on airplanes. After Chairman Wheeler announced that he had circulated an item to expand access and choice of in-flight mobile broadband, he got some pushback from Capitol Hill. For example, Sen Ed Markey (D-MA) urged "caution and consultation" before extending in-flight use to voice calls as well as accessing data. "Playing 'Words with Friends' is different than passengers having lengthy, loud 'conversations with friends' while in the tight, inescapable confines of an airline passenger cabin," said Sen Markey. "The FCC should work closely with the flight attendants and pilots who serve the passengers as well as consumers, airlines, and the FAA in updating these policies." (Nov 22)
benton.org/node/168223 | Broadcasting&Cable
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FCC MAKES RIGHT CALL
[SOURCE: Washington Post, AUTHOR: Editorial staff]
[Commentary] The Federal Communications Commission may permit airlines to experiment with allowing passengers to use cellphones in flight, officials said last week. The agency should do so, and airlines should get on with experimenting. Permission is not requirement; a change in federal rules would not necessarily mean the ruination of air travel for all time. The proposal before the FCC would simply admit that there are no dangers or technical complications to transferring voice and data to and from mobile phones in the air, as long as the right technology is on board. Until now, the FCC worried that airborne mobile phone use would interfere with ground-based cell networks. Now that carriers in Europe and Asia have shown it can be done safely, the government’s telecommunications regulator has no sound reason to keep its restrictions. Its rules are outdated, and they should go. (Nov 24)
benton.org/node/168246 | Washington Post
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IN-FLIGHT CALLS BACKLASH
[SOURCE: Washington Post, AUTHOR: Cecilia Kang]
When the chairman of the Federal Communications Commission unveiled a proposal this week to allow cellphone calls and Internet service during airline flights, he said it was time to reevaluate an “outdated and restrictive” ban. He added that a revision to 20-year-old rules would “expand consumer access and choice for in-flight mobile broadband.” Now, after fierce criticism from consumers, airline employee unions and lawmakers, FCC Chairman Tom Wheeler appears to be distancing himself from the plan, observers say. Chairman Wheeler said that the FCC merely approves the technical specifications of using cellphone service on planes. The airlines and the Federal Aviation Administration, he said, will ultimately decide if they want to unleash phone conversation in airline cabins. In fact, the newly appointed head of the FCC said he doesn’t even like the idea of chattering from airline seat mates. (Nov 22)
benton.org/node/168245 | Washington Post
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ELECTIONS AND MEDIA

BITCOIN AND CAMPAIGNS
[SOURCE: The Hill, AUTHOR: Ben Goad]
The Federal Election Commission (FEC) deadlocked on a proposal to allow donations involving bitcoin in political campaigns, dealing a significant setback for proponents of emerging virtual currencies. The six-member body split 3-3 on the proposal. “They didn’t say no,” said Dan Backer, who filed the request on behalf of the Conservative Action Fund (CAF) PAC. “They decided they’re not ready to say yes.” Backer argued that virtual currency is “just another form of in-kind contribution,” already allowed by the FEC. (Nov 21)
benton.org/node/168191 | Hill, The
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CYBERSECURITY

IMMEDIATE OPPORTUNITIES FOR STREGTHENING THE NATION’S CYBERSECURITY
[SOURCE: The Hill, AUTHOR: Kate Tummarello]
The President’s Council of Advisors on Science and Technology released a report which concludes that the federal government needs to lead by example when it comes to cybersecurity best practices. PCAST -- which includes Google’s Eric Schmidt, Microsoft’s Craig Mundie and leaders from the country’s science and technology-focused universities — said the government should follow best practices to prevent cyberattacks. “The Federal Government rarely follows accepted best practices,” the group wrote. “It needs to lead by example and accelerate its efforts to make routine cyberattacks more difficult by implementing best practices for its own systems.” These best practices include using software that updates automatically, adopting secure browsers and phasing out “unsupported and insecure operating systems, such as Windows XP.” The report also encourages regulatory agencies to encourage best practices for the industries they regulate. (Nov 22)
benton.org/node/168237 | Hill, The | read the report
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LOBBYING

PAYING YOUR CABLE BILL HELPS SHOWER MILLIONS ON DC FATCATS WORKING AGAINST YOUR INTERESTS
[SOURCE: Stop the Cap!, AUTHOR: Phillip Dampier]
[Commentary] A portion of your cable bill pays for much more than programming, with millions diverted to Koch Brothers-backed astroturf groups, tea party candidates, fat paychecks for former public officials taking a trip through DC’s revolving door, and generous allowances for travel expenses racked up by high-flying industry lobbyists. The Center for Public Integrity took a trip through the 2012 tax return of America’s top cable trade group: the National Cable & Telecommunications Association (NCTA), which collected $60 million in 2012 in membership dues from America’s top cable operators, who in turn were reimbursed by you when paying your monthly cable bill. NCTA president and CEO Michael K. Powell, the former chairman of the Federal Communications Commission during President George W. Bush’s first term, was well compensated in his new role representing the same cable industry he used to barely oversee, taking home more than $3 million in pay in 2012. Eight other employees, including NCTA’s executive vice-president, collectively cleared over a million dollars in salary according to the groups’ Form 990 filed with the Internal Revenue Service. The revolving door at NCTA headquarters is kept well-greased, with 78 out of 89 federal-level NCTA lobbyists formerly working in government jobs representing the American people. Now they work for the interests of Comcast, Time Warner Cable, and other large operators. Collectively, the NCTA spent $19 million on lobbying activities in 2012, much of it bankrolling “dark money” groups that refuse to disclose their donors and consider it their life mission to defeat President Barack Obama and blockade Democrats in Congress — the ones still most likely to demand more oversight and regulation of the free-spending cable industry. Among the groups receiving cable’s cash were Americans for Prosperity, Americans for Tax Reform, American Commitment, and the Center for Individual Freedom. (Nov 19)
benton.org/node/168210 | Stop the Cap!
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AGENDA

INCENTIVE AUCTION RULES VOTE NO ON FCC DECEMBER AGENDA
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
The Federal Communications Commission has released its tentative agenda for the Dec. 12, 2013 meeting, the last public meeting of the year, and there is no vote scheduled on rules for the incentive auction. The chairman could still add it to the agenda later, or circulate it for a vote by the commissioners outside the public meeting, though it is sufficiently high-profile that that would seem unlikely, suggested one FCC official. The agenda does contain a vote on a Notice of Proposed Rulemaking to revise FCC rules to allow airlines the ability to permit passengers more freedom to use mobile devices on planes; an order on improving 911 reliability, a presentation on the IP transition that Chairman Tom Wheeler signaled in a blog posting ; and an update on mobile wireless device unlocking, which Wheeler has asked the wireless industry to do voluntarily ASAP or the FCC may step in.
benton.org/node/168203 | Broadcasting&Cable
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Shaken NSA Grapples With an Overhaul

Shortly after former government contractor Edward Snowden revealed himself in June as the source of leaked National Security Agency documents, the agency's director, Gen. Keith Alexander, offered to resign, according to a senior US official. The offer, which hasn't previously been reported, was declined by the Obama Administration. But it shows the degree to which Snowden's revelations have shaken the NSA's foundations -- unlike any event in its six-decade history, including the blowback against domestic spying in the 1970s. The post-Snowden era has forced a major re-evaluation of NSA operations by the administration and on Capitol Hill, and the review is likely to alter the agency's rules of the road. "It was cataclysmic," Richard Ledgett, who heads a special NSA Snowden response team, said of the disclosures. "This is the hardest problem we've had to face in 62 years of existence." Broad new controls, though, run the risk of overcorrecting, leaving the agency unable to respond to a future crisis, critics of the expected changes warn.

NSA Report Outlined Goals for More Power

Officials at the National Security Agency, intent on maintaining its dominance in intelligence collection, pledged last year to push to expand its surveillance powers, according to a top-secret strategy document.

In a February 2012 paper laying out the four-year strategy for the NSA’s signals intelligence operations, which include the agency’s eavesdropping and communications data collection around the world, agency officials set an objective to “aggressively pursue legal authorities and a policy framework mapped more fully to the information age.” Written as an agency mission statement with broad goals, the five-page document said that existing American laws were not adequate to meet the needs of the NSA to conduct broad surveillance in what it cited as “the golden age of Sigint,” or signals intelligence.

(Nov 22)

The FCC makes the right call on cellphones on planes

[Commentary] The Federal Communications Commission may permit airlines to experiment with allowing passengers to use cellphones in flight, officials said last week. The agency should do so, and airlines should get on with experimenting.

Permission is not requirement; a change in federal rules would not necessarily mean the ruination of air travel for all time. The proposal before the FCC would simply admit that there are no dangers or technical complications to transferring voice and data to and from mobile phones in the air, as long as the right technology is on board. Until now, the FCC worried that airborne mobile phone use would interfere with ground-based cell networks. Now that carriers in Europe and Asia have shown it can be done safely, the government’s telecommunications regulator has no sound reason to keep its restrictions. Its rules are outdated, and they should go.

(Nov 24)

After backlash on plan to allow in-flight calls, FCC chief backs off

When the chairman of the Federal Communications Commission unveiled a proposal this week to allow cellphone calls and Internet service during airline flights, he said it was time to reevaluate an “outdated and restrictive” ban. He added that a revision to 20-year-old rules would “expand consumer access and choice for in-flight mobile broadband.” Now, after fierce criticism from consumers, airline employee unions and lawmakers, FCC Chairman Tom Wheeler appears to be distancing himself from the plan, observers say. Chairman Wheeler said that the FCC merely approves the technical specifications of using cellphone service on planes. The airlines and the Federal Aviation Administration, he said, will ultimately decide if they want to unleash phone conversation in airline cabins. In fact, the newly appointed head of the FCC said he doesn’t even like the idea of chattering from airline seat mates.

(Nov 22)

In-Flight Phone Etiquette: Experts Offer Suggestions

If cellphone calling comes to airplanes, it is likely to be the last call for manners. The prospect is still down the road a bit, and a good percentage of the population can be counted on to be polite. But etiquette experts who already are fuming over the proliferation of digital rudeness aren't optimistic. Jodi R.R. Smith, owner of Mannersmith Etiquette Consulting in Massachusetts, says the biggest problem is forced proximity. It is hard to be discreet when just inches separate passengers. And it isn't possible to escape.

(Nov 24)

Cable consolidation isn’t about TV: It’s about broadband

[Commentary] This is an opportune time for the cable industry to consolidate given the demand for broadband generated by over-the-top services such as Netflix and Hulu. The cable guys don’t compete against each other in a given geographic footprint, but instead, against the telcos. And when it comes to broadband, the telcos are losing.

So the cable industry, if it can consolidate, gets access to the most important pipe coming into people’s homes (after power and water) and the fewer cable companies there are, the more unified the rate structure might appear. So today Comcast has a broadband data cap, but Time Warner Cable doesn’t. However, if Time Warner Cable gets bought by Comcast or Charter, both of which have caps, that unlimited broadband from TWC goes by the wayside. But consolidation in cable is going to take a lot of creativity, as the regulatory environment is unclear. Comcast may be looking for ways to swallow Time Warner Cable or Liberty Media’s John Malone may make his play with Charter, but whatever deal goes down, the Department of Justice and other regulators will want to have a say. And no one is clear exactly what that say might be yet.

(Nov 22)