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December 2013

Senate Commerce Committee
Wednesday, December 18, 2013
2:30 pm

A hearing to examine the data broker industry and how industry practices may impact consumers. The hearing comes after a yearlong Commerce Committee examination of how data brokers collect, compile, and sell consumer information for marketing purposes.

In October 2012, Rockefeller launched an investigation into the data broker industry to give consumers a better understanding of how their personal information is handled, issuing information requests to nine representative data brokers. Rockefeller sent an additional set of inquiries in September 2013 to twelve popular personal finance, health, and family-focused websites to further explore data broker information collection practices, and further expanded the investigation in October 2013 by requesting that Experian provide specific information about the company’s customer vetting practices following news reports alleging that an Experian subsidiary sold data to an identity theft scheme.


The IP/Broadband Transition -- Public Policy Still Matters

Anna-Maria Kovacs’ recent white paper, prepared on behalf of the Internet Innovation Alliance, argues (1) that incumbent local exchange carriers (ILECs) are not investing in broadband because of alleged regulatory obligations that require wasteful investment in “duplicate” copper-based circuit-switched networks; (2) that the small volume of voice traffic, compared to all Internet protocol (IP) traffic, negates the importance of policy oversight of the IP transition; and (3) that competition has given consumers “a plethora of choices,” over “various platforms,” which further undermines the need for regulatory oversight. Dr. Kovacs’ arguments do not stand up to scrutiny.

This transition does not eliminate the underlying public policy objectives that regulators have promoted -- affordable rates, high quality services, 911 access, or broadband deployment. The following areas continue to require the attention of policymakers, regardless of the technology that is utilized to provide critical telecommunications services: Affordability, Limited Competition, Reliability and Service Quality, Access to Emergency Services, Carrier of Last Resort and Universal Service, and Informed Consumers and Consumer Education.

Google’s Road Map to Global Domination

The Internet land grab can be reduced to three key battles over three key conceptual territories. What came first, conquered by Google’s superior search algorithms. Who was next, and Facebook was the victor. But where, arguably the biggest prize of all, has yet to be completely won.

Where-type questions -- the kind that result in a little map popping up on the search-results page -- account for some 20 percent of all Google queries done from the desktop. But ultimately more important by far is location-awareness, the sort of geographical information that our phones and other mobile devices already require in order to function. In the future, such location-awareness will be built into more than just phones. All of our stuff will know where it is -- and that awareness will imbue the real world with some of the power of the virtual. Your house keys will tell you that they’re still on your desk at work. Your tools will remind you that they were lent to a friend. And your car will be able to drive itself on an errand to retrieve both your keys and your tools. While no one can say exactly how we will get from the current moment to that Jetsonian future, one thing for sure can be said about location-awareness: maps are required. The competition to make the best maps, the thinking goes, is more than a struggle over who dominates the trillion-dollar smartphone market; it’s a contest over the future itself.

Paywalls Boost Ad Rates for Some Magazines and Newspapers, OPA Study Finds

Online paywalls are helping some newspaper and magazine websites increase the ad rates they charge, according to a new report from the Online Publishers Association.

It's a hopeful sign for publishers that have hesitated to erect paywalls, despite the potential to generate new revenue from readers, for fear of hurting traffic and ad revenue in turn. "This report demystified the concept that subscription models would have a negative impact on the ad growth," said Pam Horan, president of the OPA, whose report examined nine of its members that use some form of paywall, including Time, The New York Times and The Financial Times. "We saw consistently that our members were having a very successful advertising business while growing their subscription business." Paywalls help increase ad rates partly because publishers capture valuable "first-party" data on subscribers as they sign up, the report suggested. "They're finding that these models give them additional insights into their readers," Horan said. "They're using data as an asset to understand consumer behavior and help marketers target these audiences and design the right products."

Cyber-enabled Competitive Data Theft: A Framework for Modeling Long-Run Cybersecurity Consequences

Cybersecurity has become a pressing policy issue, and has drawn the attention of the national security community. Yet there is an emerging consensus among experts that one of the largest policy problems faced in cyberspace may be not a question of military threats in a new domain, but the massive exfiltration of competitive information from American companies. Economic espionage has existed at least since the industrial revolution, but the scope of modern cyber-enabled competitive data theft may be unprecedented. With this paper, Friedman, Mack-Crane, and Hammond present what they believe is the first economic framework and model to understand the long-run impact of competitive data theft on an economy by taking into account the actual mechanisms and pathways by which theft harms the victims.

The initial results suggest five important conclusions:

  1. The three dimensions along which the framework differentiates CCDT can all be important to model outcomes. In some cases, sector matters, in others the type of data stolen matters, and in others protection regime matters.
  2. By seeing stolen data from a business process perspective, rather than a lost asset, the authors were able to understand the problem in a longer time frame. This not only avoids the challenges of short term analysis and gives us the context of equilibria, it is more extensible in a policy analysis.
  3. These simulations demonstrate that different interventions will have different effects. Not only is there no ‘silver bullet,’ but some sectors will benefit from solutions that may offer no help to others.
  4. The framework introduces a new way of thinking about cybersecurity that does not easily map onto existing theoretical structures or evidence.
  5. This basic model is not only extensible, but can help us understand a range of critical cybersecurity policy problems.

CenturyLink's Ewing: We're evaluating other areas for FTTH

CenturyLink continues to see upside with the fiber to the home (FTTH) broadband service it offers in Las Vegas and Omaha and hopes to apply what it has learned in other markets.

"We're evaluating fiber to the home in other areas, which could give us much higher speeds," said Stewart Ewing, EVP and CFO of CenturyLink. The telecommunications company has completed the majority of its FTTH build out in Omaha (NE), where it leverages an existing fiber network that was built out by its predecessor company US West to deliver a cable-like video service in the 1990s.Upon completion, the Omaha FTTH network will provide service to about 48,000 homes. Today, about 35 percent or higher of its customers can get 20 Mbps or higher, while another 63-65 percent can get 10 Mbps or more.

Streaming-only cable package coming soon

Get ready for cable TV without the cable. A streaming-only bundle of channels, likely with a coast-to-coast reach, may be offered to viewers for the first time in 2014, according to several TV-industry heavyweights.

While the speculation of such a service has been talked about and forecast for years, the chatter has gained added weight as some of the industry’s top executives admit its time has come. “I think there’s a very strong chance of that,” Viacom CEO Philippe Dauman said of a so-called over-the-top service rolling out in 2014. “After the struggles of Intel, this topic was dead in the water,” said entertainment analyst Richard Greenfield of BTIG, “After the last 24 hours, it sounds like it’s anything but.”

Television and Mobile Ubiquitous In Vietnam

Ninety-eight percent of Vietnamese households own a television, and nearly nine in 10 have a mobile phone in their household. These are among the findings issued by the Broadcasting Board of Governors (BBG) and Gallup from a nationally representative, face-to-face survey of Vietnamese adults about media use habits in their country.

In addition to questions about programming and media, the survey asked respondents to name issues that were important to them. Topics that were found to be most of interest included the weather, environmental concerns, and territorial issues with China. “It is vital for us on the Board to have this kind of research, and this partnership with Gallup,” said Governor Michael Meehan of the BBG. “This is the kind of information we need in order to prioritize and set policy on how to best connect with people in more than 100 countries across the world.” Overall, Vietnamese are avid news consumers; nine in 10 (89.8%) say they access news at least daily, while nearly 94% do so at least once a week. Access to TV news varies little by gender, education or urban vs. rural residence. This in part reflects the finding that televisions are ubiquitous throughout the country, including in both urban (98.6%) and rural (97.0%) households. “Vietnam has a vibrant television market,” said Jinling Elliott, Digital Media Research Analyst at the International Broadcasting Bureau. “People may have a tiny house, they may not have furniture, but they do have a TV.” The data find that nearly nine in 10 (87%) have a mobile phone in their household, and more than three-quarters of adults (77.6%) say they personally own a mobile phone. Although most of these are low-end phones without Internet capability, 27.5% of mobile owners (21.3% of all Vietnamese adults) do have web-capable phones. Past-week Internet use was highest with Vietnamese under age 25 (58%) and those with a post-high school education (60%). Internet-capable phones are also most likely to be owned by those under 25.

New America Foundation
Monday, December 16, 2013
6:00 p.m. - 8:00 p.m.

Countries throughout the world filter Internet content, including Iran, China, Cuba, and Vietnam, among others. Find out why users adopt different censorship circumvention tools, and the impact and role they play in their respective countries.

The talk, presented by researcher Collin Anderson, will highlight some of his most recent work, and explore:

  • How we can begin to build a better understanding of the adoption of privacy and anonymity tools in Internet-censoring countries?
  • Why is understanding the circumvention ecosystem important?
  • When do issues of privacy and potential deanonymization of users affect current research
  • What are the initial findings of this research, and what do they tell us about Internet Freedom efforts?
  • Where do we take this research next, and answer the pressing question that affect tool development?

Join the conversation online using #TA3M and by following @TechnoActivism

To RSVP for the event:
http://www.newamerica.net/events/2013/techno_activism_third_mondays_2

For questions, contact Kirsten Holtz at New America at (202) 735-2806 or holtz@newamerica.org


December 12, 2013 (What the Phone System’s Digital Transition Will Mean for Consumers)

BENTON'S COMMUNICATIONS-RELATED HEADLINES for THURSDAY, DECEMBER 12, 2013

Today’s daily double: a FCC oversight hearing (preview below) and an open FCC meeting + lots more on today’s agenda http://benton.org/calendar/2013-12-12/


GOVERNMENT & COMMUNICATIONS
   NSA Phone Data on US Locations Incidental, Chief Says [links to web]
   DOJ official: Freedom Act may not stop sweeping spying [links to web]
   The Major Tech Companies Missing From the Surveillance Reform Letter - analysis
   Public Knowledge Leads Petition for FCC to Protect Phone Customers’ Privacy - press release
   Silicon Valley must keep the spies out of its honey trap - editorial [links to web]
   White House vetted questioners for Biden’s Skype chat [links to web]

INTERNET/TELECOM
   Disconnected: What the Phone System’s Digital Transition Will Mean for Consumers - research
   AT&T’s gigabit service is $70 if you let it spy on your searches
   New ITU broadband standard fast-tracks route to 1Gbit/s - press release [links to web]
   FCC Proposes Nearly $44 Million in Fines Against Three Lifeline Service Providers - press release [links to web]

SPECTRUM/WIRELESS
   The FCC’s wireless dilemma: More cash, or more competition?
   Rep Dingell Warns FCC Against Limiting Spectrum Auction Bidders [links to web]
   House Commerce Committee Approves Federal Spectrum Incentive Act - press release
   Controversy over proposal to allow cellphone calls in flight tests new FCC Chairman Wheeler
   Poll: Voters support ban on in-flight calls
   JetBlue launches inflight Wi-Fi, promising a home broadband experience in the sky [links to web]
   Verizon Open to Airwave Swap as T-Mobile Seeks More Capacity [links to web]
   Centerbridge Reaches Tentative Deal for LightSquared

HEALTH
   FCC Continues Push on mHealth Innovation [links to web]

GOVERNMENT PERFORMANCE
   Sec Sebelius asks for investigation of HealthCare.gov
   Chairman Issa Charges Sec Sebelius with Criminal Obstruction of HealthCare.gov Investigation [links to web]

FCC OVERSIGHT
   Democrats Tee Up Host of Issues For FCC Oversight Hearing
   FCC's Pai Supports Wheeler Decision To Move Auction Timetable
   FCC's O'Rielly: Change to Quadrennial Rule Review Led To 'Near-Complete Paralysis
   Rep Dingell Warns FCC Against Limiting Spectrum Auction Bidders [links to web]

FCC REFORM
   House Commerce Committee Approves Bipartisan FCC Process Reform - press release

POLICYMAKERS
   Nuala O’Connor Named President & CEO of the Center for Democracy & Technology - press release [links to web]

STORIES FROM ABROAD
   Apple wins legal victory against Samsung in South Korea [links to web]
   Japan Passes US as Top App Spender as Smartphone Use Rises [links to web]
   Liberty Global in takeover talks with Dutch cable group Ziggo [links to web]
   Britons lead the world in online shopping [links to web]

MORE ONLINE
   Fox's National NFL Games Are the Biggest Draw on TV [links to web]
   In the Spirit of the Valley, It’s Silicon This and Silicon That [links to web]

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GOVERNMENT & COMMUNICATIONS

THE MAJOR TECH COMPANIES MISSING FROM THE SURVEILLANCE REFORM LETTER
[SOURCE: Time, AUTHOR: Courtney Subramanian]
Eight major American tech giants have teamed up for a government surveillance reform campaign, decrying the National Security Agency’s sweeping power and demanding the end of bulk data collection in a letter to President Barack Obama and lawmakers. But missing are a few Silicon Valley companies ignoring the possible damage done by leaks from NSA former contractor Edward Snowden. Most notably, online retail giant Amazon and marketplace eBay were not among the tech signatories. Hardware-driven companies like Oracle, Cisco Systems, Intel and HP were also absent. So where is the rest of Silicon Valley? Perhaps the public denouncement strategy is most beneficial to consumer-facing entities -- of which Amazon is part of -- that offer services to a broad swath of the public. Amazon’s cloud technology and web services make it an equally important player in the internet ecosystem and a tempting target for the NSA. Meanwhile, telecom companies like AT&T, Verizon and Level 3 remain sharply divided on the privacy values in Silicon Valley. Telecom companies have the least incentive to complain, enjoying multi-million dollar government contracts annually.
benton.org/node/169886 | Time
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PUBLIC KNOWLEDGE LEADS PETITION FOR FCC TO PROTECT PHONE CUSTOMERS’ PRIVACY
[SOURCE: Public Knowledge, AUTHOR: Laura Moy]
[Commentary] Do you think your phone service provider should be able to sell or share your personal data with anyone, for any reason? No? Neither do we. More importantly, neither do lawmakers, which is why in 1996 they passed a law that severely restricted what carriers can do with all this personal information. The law modified the Communications Act to add Section 222, “Privacy of customer information.” That’s why we filed a Petition for Declaratory Ruling at the Federal Communications Commission asking it to declare that the types of records AT&T is reportedly selling to the government are protected under Section 222. We believe that phone carriers are running afoul of the Communications Act when they share customers’ call logs with third parties, even if they first purge those call logs of certain personal details such as names and phone numbers. It's important that the FCC acknowledge that the Communications Act severely restricts how carriers may use or sell sensitive information known as customer proprietary network information (CPNI) and take steps to stop this from happening in the future. Joining us on the Petition are Benton Foundation, Center for Digital Democracy, Center for Media Justice, Chris Jay Hoofnagle, Common Cause, Consumer Action], Electronic Frontier Foundation, Electronic Privacy Information Center, Free Press, New America Foundation’s Open Technology Institute, and US PIRG.
benton.org/node/169872 | Public Knowledge | Public Knowledge | The Hill
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INTERNET/TELECOM

WHAT THE PHONE SYSTEM’S DIGITAL TRANSITION WILL MEAN FOR CONSUMERS
[SOURCE: The Greenlining Institute, AUTHOR: Paul Goodman, Carmelita Miller, Brian Kim]
The accelerating shift to digital telephone networks could end basic standards like affordable service and 9-1-1 access, The Greenlining Institute argues in a new report. Key findings include:
Major telephone providers plan to upgrade the technology they use in their telephone networks, switching to all-digital networks.
If the Federal Communications Commission doesn’t enforce basic standards as this transition proceeds, programs making sure phone service is available and affordable would be in danger. People in rural areas could lose service, and low-income consumers might not be able to get basic phone service they can afford.
Access to 9-1-1 emergency services would also be in danger, along with reverse 9-1-1, which provides notification in case of natural disaster or other emergency.
Despite these consequences for consumers, major carriers argue that the Federal Communications Commission should reduce its ability to enforce these basic standards. They advocate for the elimination of FCC and state oversight of all-digital networks, arguing that they should be treated as information services, not telecommunications services.
These and other potential impacts would affect all telephone users, but would be felt most severely by low-income consumers and communities of color.
benton.org/node/169913 | Greenlining Institute, The
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AT&T’S GIGABIT SERVICE IS $70 IF YOU LET IT SPY ON YOUR SEARCHES
[SOURCE: GigaOm, AUTHOR: Stacey Higginbotham]
AT&T said that it has started service in four Austin neighborhoods with an offer to bring its GigaPower fiber-to-the-home service for $70 a month -- but with a pretty big catch. If you want to pay the lower rate you must agree “to participate in AT&T Internet Preferences.” This means, “AT&T may use your Web browsing information, like the search terms you enter and the Web pages you visit, to provide you relevant offers and ads tailored to your interests.” The gigabit service will have a one terabyte data cap with overage fees of $10 for each additional 50GB, up to an additional $30 per month. The pricing with targeted advertising is in line with what Google charges in Kansas City, although Google does offer a free 5 Mbps service, and has confirmed that it does not inspect your content at the packet level as an ISP.
benton.org/node/169880 | GigaOm | telecompetitor | AT&T
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SPECTRUM/WIRELESS

THE FCC’S WIRELESS DILEMMA: MORE CASH, OR MORE COMPETITION?
[SOURCE: Washington Post, AUTHOR: Brian Fung]
If you've been following the debate about wireless spectrum, you know that Sprint and T-Mobile are at loggerheads with Verizon and AT&T over how much of the airwaves the big carriers will be allowed to buy in an upcoming auction. If Verizon and AT&T manage to snap up the bulk of it, regulators worry they'll threaten competition in the wireless industry. To avoid that fate, some have suggested imposing auction limits on the nation's two biggest carriers. In a recent Senate hearing, observers got a glimpse of how these restrictions might take shape. One option being considered is a set of caps that explicitly acknowledge Verizon and AT&T's current position at the top of the market. "No one has ever suggested that the two dominant incumbents be excluded from the upcoming incentive auction," wrote T-Mobile, Sprint and a handful of other companies in a letter to the Senate Commerce Committee. "But they already control nearly 80 percent of all available low-frequency spectrum." Rules that primarily restrict the largest carriers would free up more spectrum for other bidders, these companies argue. But experts disagree over the second-order effects -- whether it would raise more revenue that way in the long run, for example, or whether the smaller carriers would be able to use that spectrum as efficiently as the larger ones. Sorting through all this is the Federal Communications Commission, which has to juggle sometimes competing goals in designing the auction. Making sure the auction generates enough wealth to fund other expensive projects is one example. But the FCC also has to consider whether the rules of the sale ultimately benefit consumers.
benton.org/node/169897 | Washington Post
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COMMITTEE APPROVES BIPARTISAN FCC FEDERAL SPECTRUM INCENTIVE ACT
[SOURCE: House of Representatives Commerce Committee, AUTHOR: Press release]
The House of Representatives Commerce Committee approved, by unanimous voice vote, the Federal Spectrum Incentive Act (H.R. 3674), authored by Reps Brett Guthrie (R-KY) and Doris Matsui (D-CA). The bill would create a new path for government spectrum users to relinquish spectrum and receive a portion of net auction revenues instead of relocation costs. Reps Guthrie and Matsui are co-chairs of the subcommittee’s bipartisan Federal Spectrum Working Group, which continues to examine how the federal government can use the nation’s airwaves more efficiently.
benton.org/node/169892 | House of Representatives Commerce Committee | B&C
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IN-FLIGHT CELLPHONE CALLS
[SOURCE: Washington Post, AUTHOR: Cecilia Kang]
It didn’t take long for Tom Wheeler, the new chairman of the Federal Communications Commission, to face controversy. On Dec 12, the agency’s five-member commission is set to vote on whether to allow the public to comment on Wheeler’s idea to enable cellphone calls and Internet access on flights. That may sound like a minor procedural motion. But the proposal has generated so much backlash that some commissioners are wavering on whether to even take that step. Chairman Wheeler and another Democrat on the commission are expected to sign off on creating a public commenting period. But the other Democrat and the two Republican commissioners are hearing an outcry of protest from consumers and some lawmakers, and there is no guarantee that they would support opening the matter for review, FCC officials said. Chairman Wheeler said that he understands “the consternation caused by the thought of your onboard seatmate disturbing the flight making phone calls. I do not want the person in the seat next to me yapping at 35,000 feet any more than anyone else. But we are not the Federal Courtesy Commission.” He added: “Technology has produced a new network reality recognized by governments and airlines around the world. Our responsibility is to recognize that new reality’s impact on our old rules.” Some expect companies to jump on the proposal if the FCC ultimately approves the idea, said an aide to an FCC commissioner. “Once the FCC gets out of the way, you have to imagine airlines are immediately thinking of how to monetize it,” the aide said.
benton.org/node/169930 | Washington Post
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POLL: VOTERS SUPPORT BAN ON IN-FLIGHT CALLS
[SOURCE: The Hill, AUTHOR: Mario Trujillo]
A broad majority in a new poll believes cellphone calls should continue to be restricted on airplanes. A Quinnipiac poll found 59 percent of registered voters think calls should not be allowed, while 30 percent support the potential change to allow cell calls. Another 10 percent did not respond. A majority of every major demographic opposes calls on airlines. Young adults aged 18-29 are most open to the change, but even 52 percent of that group opposes the change. Some lawmakers on Capitol Hill also oppose the change and have introduced legislation to keep the ban in place. The Federal Communications Commission has said it would look into the change after it moved to allow passengers to use their phones for texts and emails during flights.
benton.org/node/169882 | Hill, The | Quinnipiac University
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CENTERBRIDGE DEAL FOR LIGHTSQUARED
[SOURCE: Wall Street Journal, AUTHOR: Mike Spector, Emily Glazer]
Private-equity firm Centerbridge Partners LP reached a tentative deal to buy LightSquared Inc. out of bankruptcy proceedings, said people familiar with the matter, potentially upstaging a bid by Dish Network to take over the wireless-telecommunications firm. Centerbridge proposed paying roughly $3.3 billion for the wireless venture, backed by financier Philip Falcone, and assuming about $1.7 billion in various liabilities, the people said. The deal would be executed under a bankruptcy-reorganization plan, some of the people said. Centerbridge's negotiations with LightSquared were fluid, and there remained a chance discussions could fall apart, some of the people said.
benton.org/node/169927 | Wall Street Journal | FT
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GOVERNMENT PERFORMANCE

SECRETARY SEBELIUS ASKS FOR INVESTIGATION OF HEALTHCARE.GOV
[SOURCE: Associated Press, AUTHOR: Ricardo Alonso-Zaldivar]
Recognizing that deeper problems may lurk behind the botched rollout of the health care website, Health and Human Services Secretary Kathleen Sebelius called for an investigation into management and contracting decisions. Sec Sebelius said that she is asking the department's inspector general to investigate the contracting process, management, performance and payment issues that may have contributed to the flawed launch of HealthCare.gov. In addition to the inspector general review, Sec Sebelius said she has ordered the hiring of a new "chief risk officer" at the Medicare agency, which also oversees the new programs created to expand health insurance coverage under Obama's law. That official will focus on making sure technology programs work as advertised. Secretary Sebelius also said she's ordered a retraining of her department on best practices for outside contracting.
benton.org/node/169876 | Associated Press | Kaiser Health News
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FCC OVERSIGHT

DEMOCRATS TEE UP HOST OF ISSUES FOR FCC OVERSIGHT HEARING
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
A Democratic staff memo for the House Communications Subcommittee Federal Communications Commission oversight hearing Dec. 12 focuses on four basic issues -- broadcast incentive auctions, government spectrum policy, universal service and the IP transition. In addition, the Democratic half of the subcommittee is looking for status reports on cell phone unlocking, in-flight mobile wireless, positive train control, the open Internet order, the IP transition, and the E-rate and Lifeline programs. The memo talks about several spectrum issues, including the three spectrum auctions mandated by Congress -- the H block auction, the first, scheduled for Jan. 22, 2014; the second, AWS-3 auction, which like the H block must be completed by February 2014; and the broadcast incentive auction, which is now scheduled for mid-2015.
benton.org/node/169903 | Broadcasting&Cable
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FCC'S PAI SUPPORTS WHEELER DECISION TO MOVE AUCTION TIMETABLE
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
Federal Communications Commissioner Ajit Pai is standing with FCC Chairman Tom Wheeler on the issue of moving the broadcast incentive auction date into 2015. But his biggest worry is that the FCC will discourage participation. That is according to a copy of Commissioner Pai's testimony for the Dec 12 House Communications Subcommittee FCC oversight hearing. "I am disappointed that there was not a clear path to holding a successful incentive auction by the end of 2014," he plans to tell the legislators. "I accordingly support Chairman Wheeler’s announcement setting the middle of 2015 as our new target and applaud him for issuing a schedule to meet that goal." And echoing both a National Association of Broadcasters talking point and a mantra that has begun to migrate to the FCC as well, Commissioner Pai said that it was "more important to get the auction done right than to get it done right now." Commissioner Pai plans to tell the subcommittee that there are five key auction principles:
Keep to the statute. "It is our job to implement this legislation, not to rewrite it to conform to our policy preferences," he says.
The band plan and repacking must "respect the laws of physics."
Be fair to both broadcasters and wireless companies since the FCC will need both for a successful auction.
Keep it simple, or as simple as possible given how inherently complicated it is.
Get 'er done. "Prolonged uncertainty is not good for broadcasters or wireless carriers.
benton.org/node/169911 | Broadcasting&Cable
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FCC'S O'RIELLY: CHANGE TO QUADRENNIAL RULE REVIEW LED TO 'NEAR-COMPLETE PARALYSIS
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
New Federal Communications Commissioner Michael O'Rielly plans to tell House Communications Subcommittee members that the FCC has fallen down on the media ownership review job and needs to get moving. That's according to his testimony for a Dec 12 oversight hearing. "The Commission has failed to comply with the obligations required by the Telecommunications Act of 1996, which were subsequently amended by Congress, to review and repeal or modify any of its media ownership rules that are no longer in the public interest as a result of competition," he says. Commissioner O'Rielly also outlined his keys to a successful incentive auction, which he also knows a little something about from his former job. "I helped shape and craft the text of the incentive auction statute, in partnership with the able Republican and Democratic staff from the House and Senate," he points out. As he sees it, the FCC needs to "entice enough broadcasters to participate, reasonably protect those broadcasters that choose otherwise, and convince wireless companies to bid on the spectrum made available."
benton.org/node/169909 | Broadcasting&Cable
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FCC REFORM

COMMITTEE APPROVES BIPARTISAN FCC PROCESS REFORM ACT
[SOURCE: House of Representatives Commerce Committee, AUTHOR: Press Release]
The House of Representatives Commerce Committee approved the Federal Communications Commission Process Reform Act (H.R. 3675) with an amendment in the nature of a substitute offered by Chairman Greg Walden (R-OR) and Subcommittee Ranking Member Anna Eshoo (D-CA). The amendment represents a bipartisan compromise that presents the FCC with a framework to bring additional transparency and predictability to its work. The bill also contains some statutory provisions including changes to the sunshine rules and a permanent exception to the Antideficiency Act for the federal Universal Service Fund. The bill sets maximum comment periods (with a carveout for good cause exemptions) for regulatory actions, including petitions for reconsideration and "establish[es] procedures for publishing the status of open rulemaking proceedings and proposed orders, decisions, reports, or actions on circulation for review by the Commissioners, including which Commissioners have not cast a vote on an order, decision, report, or action that has been on circulation for more than 60 days."
Among the more contentious issues it tees up in a mandatory FCC report are: "whether and how" to 1) allow commissioners, rather than just the chairman, to put issues on the agenda; 2) establish procedures for informing commissioners of their options for resolving a petition, complaint, application or rulemaking; 3) give commissioners adequate time to review items before they have to vote on them; 4) publish the text of agenda items before they are voted on in an open meeting so the public can read them; 5) deadlines for deciding of license applications; 6) to impose a license fee to help pay for any additional cost of meeting those deadlines; and 7) publish all orders, decisions and reports within 30 days of adoption.
benton.org/node/169894 | House of Representatives Commerce Committee | B&C | AdWeek
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