April 18, 2014 (A Time For "No!")
BENTON'S COMMUNICATIONS-RELATED HEADLINES for FRIDAY, APRIL 18, 2014
Public Safety Imperatives for All-IP Networks http://benton.org/calendar/2014-04-18/
OWNERSHIP
A Time For "No!" - Michael Copps op-ed
American Securities Puts Prison-Phone Operator GTL on Block
INTERNET/BROADBAND
Libraries Seek High-Speed Broadband
Examining the Impact of Broadband Grants Program on Connecting Libraries - press release
Technology Transitions and Public Safety Workshop and Online Forum - press release [links to web]
Google Fiber finally rolling out Internet service to businesses in KC [links to web]
SPECTRUM/WIRELESS
FCC chief defends plan to limit large carriers in auction
Sprint/T-Mobile merger may prompt US FCC to rewrite auction rules
Reforming the FCC’s “Designated Entity” Rules Will Promote Diversity in Spectrum Ownership - Verizon press release
US and Canadian wireless networks: Supporting the world’s largest bilateral trading relationship - AEI op-ed [links to web]
TELEVISION
TV: Auction Meeting With FCC Chairman Wheeler Too Short
FCC Repack Schedule Troubles Stations, Vendors
Kagan Puts Retransmission in Perspective
ELECTIONS AND MEDIA
The tea party radio network
Political Attack Ads, Often Negative, Try Instead to Accentuate the Positive [links to web]
ADVERTISING
Nielsen and comScore Duel Over Mobile Ad-Tracking [links to web]
CONTENT
Appeals court says blogs are not only media, they’re an important source of news and commentary [links to web]
Big Labels Take Aim at Pandora on Royalties [links to web]
SECURITY/PRIVACY
Study says national cyber plan hurts US
Mission-critical satellite communications wide open to malicious hacking
Facebook plays offense in DC for new feature [links to web]
The virus of US surveillance - editorial [links to web]
GOVERNMENT & COMMUNICATIONS
How a common law enforcement tool could be abused to spy on you illegally
SPEECHES
Commissioner Clyburn Remarks at FCC Library Open House - speech [links to web]
Remarks of FCC Commissioner Ajit Pai Before The University Of Pennsylvania Law School South Asian Law Students Association - speech [links to web]
COMPANY NEWS
Google’s search juggernaut is showing some cracks [links to web]
Starbucks pulls in brand recognition to build New York Times subscriptions [links to web]
STORIES FROM ABROAD
China launches campaign to purge Internet of porn, rumors and, critics say, dissent
Snowden calls Putin to talk NSA [links to web]
SOPA Defeat Haunts Efforts to Rein In Illegal Copying, British Official Says [links to web]
An Internet ‘Big V’ Opts for Abject Contrition [links to web]
Europeans Look Beyond Their Borders [links to web]
French Court Dismisses Hate Speech Case Against Bob Dylan [links to web]
MORE ONLINE
University of Chicago Economist Who Studies Media Receives Clark Medal [links to web]
Hollywood Begs for a Tax Break in Some States, Including California [links to web]
OWNERSHIP
A TIME FOR "NO!"
[SOURCE: Benton Foundation, AUTHOR: Michael Copps]
[Commentary] How much more do regulators need to know before they understand that the proposed Comcast-Time Warner Cable merger is bad news all around? It’s bad for consumers, competition, and our very democracy. Word is it could take many months, maybe close to a year, for the two government agencies to conduct and complete their reviews. Really? The facts of the case should lead both agencies to speedy thumbs-down decisions.
Fact Number One: The merged company would further diminish competition.
Fact Number Two: Consumers, long hurting from over-priced cable and from scarce and costly broadband, would face even higher bills.
Fact Number Three: This proposal, if approved, would wreak significant harm on our civic dialogue and, indeed, on our democracy.
I don’t believe that, apart from the cable barons themselves, anyone would welcome the cableization of the Internet. Yet that is precisely the danger here. And who better to cableize it than the biggest cable company? What a tragic denial of the promise of the Internet this would be! Let’s get rid of this threat right now with clear and straight-from-the-shoulder denials of the merger by the Department of Justice and the FCC. This is a time for “No!” [Copps served as a commissioner on the Federal Communications Commission from May 2001 to December 2011 and was the FCC's Acting Chairman from January to June 2009]
http://benton.org/node/180659
Benton Foundation
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GTL ON BLOCK
[SOURCE: Wall Street Journal, AUTHOR: Ryan Dezember, Gillian Tan]
Cellphones, texting and email have decimated the traditional phone business, but until recently it had a literally captive market where it could command $17 or more for a 15-minute call. Now, the largest US operator of prison phones, Global Tel*Link Corp., is being shopped by its private-equity owner, according to people familiar with the matter. The sales push follows a decision by federal regulators to cap the fees that companies like GTL can charge for interstate calls to and from inmates. The government also is weighing a cap on charges for in-state calls. GTL, based in Mobile (AL), has been passed between private-equity firms over the past decade. It was sold most recently in late 2011 for about $1 billion to New York-based American Securities LLC. It isn't clear whether regulatory concerns were behind the firm's decision to find a buyer for the company.
benton.org/node/180705 | Wall Street Journal
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INTERNET/BROADBAND
LIBRARIES SEEK HIGH-SPEED BROADBAND
[SOURCE: New York Times, AUTHOR: Jada Smith]
The federal E-Rate program has been a boon for schools and public libraries across the country, helping them acquire Internet access and telecommunications products at affordable or vastly discounted rates. But the sleek new computers, laptops and tablets do not mean much without high-quality broadband service to match. At a public hearing held by the Institute of Museum and Library Services, the group said there was an urgent need to equip libraries with high-speed access to information. Without it, they say, the nation’s “opportunity gap” is growing. Though 62 percent of libraries offer the only free computer and Internet access in their communities, only 9 percent say they have the high-capacity connections needed to support the computers, Wi-Fi and technological training necessary for an increasingly paperless world. Some libraries connect to the Web at speeds that barely allow them to stream video services -- less than 3 megabits per second -- though many are now operating at up to 10 mbps. The goal is to upgrade all connections to at least 100 mbps.
benton.org/node/180710 | New York Times
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EXAMINING THE IMPACT OF BROADBAND GRANTS PROGRAM ON CONNECTING LIBRARIES
[SOURCE: National Telecommunications and Information Administration, AUTHOR: Press release]
The National Telecommunications and Information Administration released the first three of 15 public computer center (PCC) and broadband adoption case studies. These focus on the impact of grants in Delaware, Texas and Michigan. The case studies were conducted for NTIA by an independent research firm, ASR Analytics, which analyzed the impact these PCCs are having in their local communities. What kinds of impact are these expanded libraries having in their communities? The case studies, based on site visits, interviews, and publicly available data from the awardees’ quarterly reports to NTIA, tell a story of increased demand for library services that have helped the country continue to turn the corner on the economic recovery. The libraries are meeting an urgent need by giving people access to information and job skills they need to be competitive in a 21st century workplace.
benton.org/node/180695 | National Telecommunications and Information Administration | Delaware report | Michigan report | Technology For All report
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SPECTRUM/WIRELESS
FCC CHIEF DEFENDS PLAN TO LIMIT LARGE CARRIERS IN AUCTION
[SOURCE: The Hill, AUTHOR: Kate Tummarello]
Federal Communications Commission Chairman Tom Wheeler is defending plans to limit large wireless carriers when the federal government auctions off airwaves worth billions of dollars in 2015. In a letter to House members, Chairman Wheeler said the agency is designing the highly anticipated auction with "equity and openness in mind" to "deliver to consumers, regardless of their zip code, greater wireless competition, improved services and lower costs." Chairman Wheeler's letter is in response to a letter from 78 House Democrats who asked him to allow unlimited competition among wireless carriers in the 2015 auction. That auction will involve buying airwaves from broadcasters, repackaging those airwaves and selling them to spectrum-hungry wireless companies. Revenue from the 2015 auction, as well as from two airwave auctions in 2014, will go toward funding a nationwide network for first-responders. "My proposal would reserve a modest amount of this low-band spectrum in each market for providers that, as a result of the historical accident of previous spectrum assignments, lack such low-band capacity," Chairman Wheeler wrote, adding that the proposal will "contain safeguards to ensure that all bidders for reserved spectrum licenses bear a fair share of the cost of making incentive payments to broadcasters." Chairman Wheeler pointed to wireless companies' need for low-frequency spectrum, especially in rural areas. "Today, most of this low-band spectrum is in the hands of just two providers," he said. "The Incentive Auction offers the opportunity, possibly the last for years to come, to make low-band spectrum available to any mobile wireless provider, in any market, that is willing and able to compete at auction." Chairman Wheeler said he agreed with lawmakers looking to incentivize broadcasters and wireless companies to participate.
benton.org/node/180699 | Hill, The | B&C
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SPRINT/T-MOBILE MERGER MAY PROMPT US FCC TO REWRITE AUCTION RULES
[SOURCE: Reuters, AUTHOR: Alina Selyukh]
A planned merger of Sprint and T-Mobile US could prompt US regulators to rewrite rules they are now weighing for a 2015 auction of airwaves, according to sources familiar with the proposed plan. Federal Communications Commission Chairman Tom Wheeler has proposed restrictions on how much the biggest carriers, Verizon Communications and AT&T, could bid in the major auction of television spectrum scheduled for mid-2015. However, as in many other proceedings, the FCC's rules would be based on the "current market structure." Any changes or proposed changes in that structure that could undermine the goals of the auction would prompt a review and potential edits, said sources briefed on the proposed rules. That means if SoftBank Corp, Sprint's parent company, moves ahead with its goal of merging the No. 3 wireless carrier with No. 4 provider T-Mobile, the FCC could eliminate the reserve set off for smaller competitors, sources said.
benton.org/node/180698 | Reuters
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REFORMING THE FCC’S “DESIGNATED ENTITY” RULES WILL PROMOTE DIVERSITY IN SPECTRUM OWNERSHIP
[SOURCE: Verizon, AUTHOR: Donna Epps]
[Commentary] The Minority Media & Telecommunications Council recently released a white paper, “Digital Déjà Vu: A Road Map for Promoting Minority Ownership in the Wireless Industry,” that calls on the Federal Communications Commission to reform its “designated entity” rules. “Designated entities” (DE) are the collective term used for women- and minority-owned businesses, and the paper calls for the Federal Communications Commission to increase opportunities for women and minority-owned enterprises to participate in spectrum auctions by reforming its “designated entity” rules. We agree that this issue deserves FCC review. As a company that is committed to diversity and inclusion, Verizon supports efforts to create opportunities for greater inclusion and participation. While we do not agree with every recommendation in the MMTC white paper, we support MMTC’s overall goal to increase participation of diverse communities in the communications space. We also agree with MMTC that the FCC should examine appropriate ways to reform the current “designated entity” rules to maximize opportunities for small, women and minority-owned businesses to participate in spectrum auctions.
benton.org/node/180662 | Verizon
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TELEVISION
TV: AUCTION MEETING WITH FCC CHAIRMAN WHEELER TOO SHORT
[SOURCE: TVNewsCheck, AUTHOR: Doug Halonen]
Federal Communications Commission Chairman Tom Wheeler has invited incentive auction stakeholders to meet with him personally to take their best shots at his proposed rules for the auctions -- before the agency adopts the regulations as widely expected on May 15 -- but at least some broadcasters are complaining that their meeting with the chairman appears to be little more than window dressing. “On some levels, it’s an insult,” says one broadcast group representative, of the planned April 22 meeting between Chairman Wheeler and representatives of the National Association of Broadcasters, the TV networks, public broadcasters, network affiliate and station group representatives. “It’s hard to believe this will be a meaningful feedback session,” the station group rep added, of the half-hour session. “It will take half that time for everybody to go around and introduce themselves. What’s the point of dragging us in there?” NAB coalition members, who have been decidedly unenthusiastic about the auctions from the get-go, are complaining in part because their half-hour “feedback” session with the chairman is allegedly too short to provide for substantive discussion -- and appears to be taking place after the chairman has already forwarded his rule recommendations to his fellow commissioners.
benton.org/node/180697 | TVNewsCheck
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FCC REPACK SKED TROUBLES STATIONS, VENDORS
[SOURCE: TVNewsCheck, AUTHOR: Phil Kurz]
Broadcasters are expressing concern that the timetable proposed by the Federal Communications Commission to repack TV spectrum following the auction to wireless carriers is unworkable and that the consequences for failure to meet the deadlines under consideration are too severe. The proposals include a 39-month window to complete channel relocation following the completion of the auction. Failure by a broadcaster to finish the channel change in that time will result in that station going dark until the work is completed. Another proposal states that if a station is unable to complete the channel change within a year of going dark, it will be required to forfeit its broadcast license. The order, expected to go to the commissioners for approval at their May or June open meeting, will address what the reorganized 600 MHz band will look like, provide details about the auction process, lay out the impact of the auction on broadcasters, including the repack, the reimbursement process and time line, and what happens after the repack.
benton.org/node/180674 | TVNewsCheck
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KAGAN PUTS RETRANSMISSION IN PERSPECTIVE
[SOURCE: Multichannel News, AUTHOR: Mike Farrell]
In a report that is sure to be fully embraced by the broadcast community, SNL Kagan said that retransmission consent fees, also known as the bane of multichannel video service providers, account for just 8.9% of total fees distributors pay to networks and is expected to rise to just under 13% by 2017. The Kagan report comes just weeks after the Federal Communications Commission moved to prohibit Joint Sales Agreements where two of the top four stations in a market join forces to negotiate retransmission deals. Part of the reason for the ruling was to prevent what some MVPDs have said was onerous pricing for retransmission and to stop blackouts of channels. In its analysis, SNL Kagan said they saw little evidence for either. The research house said that rising retransmission fees are just one factor in escalating programming costs -- others were the additional expense of TV Everywhere and multiplatform agreements, increasing costs for cable network programming (especially sports), and additional channel launches.
benton.org/node/180672 | Multichannel News
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ELECTIONS AND MEDIA
THE TEA PARTY RADIO NETWORK
[SOURCE: Politico, AUTHOR: Kenneth Vogel, MacKenzie Weinger]
FreedomWorks has paid more than $6 million in recent years to have Beck promote the group, its initiatives and events. The FreedomWorks-Beck relationship is just one example of a powerful and profitable alliance between the conservative movement’s most aggressive groups and the most popular radio hosts. The details of the arrangements are little-known, but they have been lucrative for the recipients, and, in turn, have helped ensure that the groups get coveted airtime from hosts with a demonstrated ability to leverage their tens of millions of listeners to shape American politics. It’s an alliance that helped spawn the anti-establishment tea party and power Republicans to landslide victories in the 2010 midterms. It’s also exacerbated congressional gridlock by pushing a hard line on the budget, immigration and Obamacare, and it is roiling the Republican Party headed into critical midterm elections.
benton.org/node/180692 | Politico
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SECURITY/PRIVACY
STUDY SAYS NATIONAL CYBER PLAN HURTS US
[SOURCE: The Hill, AUTHOR: Julian Hattem]
A new report claims that the Commerce Department’s voluntary cybersecurty framework could end up undermining the online protections it seeks. The report from George Mason University’s Mercatus Center claimed that the plan amounts to “opaque control” of the Internet, which could undermine the “spontaneous, creative sources of experimentation and feedback that drive Internet innovation.” Companies, the authors wrote, “already have intrinsic incentives to develop cybersecurity solutions” without a formal government plan. Those standards, in fact, are based on industry norms and market trends which “are more robust, effective, and affordable than state-directed alternatives,” they added. The voluntary framework released by the Commerce Department in February outlines how financial services firms, power companies and other critical infrastructure businesses can beef up their protections against cyberattacks. Supporters have said that the guide is a step towards safer networks and critical protections against a future impending cyberattack. Lawmakers and administration officials have warned of a “cyber Pearl Harbor” for which the US is currently unprepared. But study authors Eli Dourado and Andrea Castillo say that that kind of rhetoric is overblown and serves as a distraction from the steady stream of data breaches and cyber spying that authorities should be going after.
benton.org/node/180666 | Hill, The | Mercatus Center report
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MISSION-CRITICAL SATELLITE COMMUNICATIONS WIDE OPEN TO MALICIOUS HACKING
[SOURCE: ars technica, AUTHOR: Dan Goodin]
Mission-critical satellite communications relied on by Western militaries and international aeronautics and maritime systems are susceptible to interception, tampering, or blocking by attackers who exploit easy-to-find backdoors, software bugs, and similar high-risk vulnerabilities, a researcher warned. Ground-, sea-, and air-based satellite terminals from a broad spectrum of manufacturers -- including Iridium, Cobham, Hughes, Harris, and Thuraya -- can be hijacked by adversaries who send them booby-trapped SMS text messages and use other techniques, according to a 25-page white paper published by penetration testing firm IOActive. Once a malicious hacker has remotely gained control of the devices, which are used to communicate with satellites orbiting in space, the adversary can completely disrupt mission-critical satellite communications (SATCOM). Other malicious actions include reporting false emergencies or misleading geographic locations of ships, planes, or ground crews; suppressing reports of actual emergencies; or obtaining the coordinates of devices and other potentially confidential information. "If one of these affected devices can be compromised, the entire SATCOM infrastructure could be at risk," wrote Ruben Santamarta, IOActive's principal security consultant. "Ships, aircraft, military personnel, emergency services, media services, and industrial facilities (oil rigs, gas pipelines, water treatment plants, wind turbines, substations, etc.) could all be impacted by these vulnerabilities."
benton.org/node/180694 | Ars Technica
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GOVERNMENT & COMMUNICATIONS
HOW A COMMON LAW ENFORCEMENT TOOL COULD BE ABUSED TO SPY ON YOU ILLEGALLY
[SOURCE: Washington Post, AUTHOR: Brian Fung]
Privacy advocates are warning that the legal gray area in a key court case may make it easier for the government to spy on Americans illegally. By using what's called a pen trap order -- a type of judicially approved surveillance mechanism that's only supposed to capture metadata about electronic communications -- it appears that the government has the theoretical ability to capture the content of those communications as well. The case involves Lavabit, the secure e-mail service used by NSA leaker Edward Snowden. Broadly, the case is about whether the government can force an Internet company like Lavabit to hand over its encryption keys. In a ruling, a federal appeals court sided with law enforcement. But a closer look at just how the government can obtain the keys has civil liberties scholars very worried. If the government can use an order that's restricted to metadata to obtain keys it could then use to decrypt content, then a nefarious actor could gain access to content without jumping through the judicial hoops necessary for demanding content.
benton.org/node/180669 | Washington Post
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STORIES FROM ABROAD
CHINA LAUNCHES CAMPAIGN TO PURGE INTERNET OF PORN, RUMORS AND, CRITICS SAY, DISSENT
[SOURCE: Washington Post, AUTHOR: Simon Denyer]
China has unfurled a vigorous new campaign to clean up the Internet, to purge it of everything from pornography to “rumors” that might undermine Communist Party rule, a crusade that critics say is a renewed attempt to silence grass-roots voices and stifle dissent. Censorship of the media and Internet is routine in China, but the new campaign appears to represent a significant tightening of the screws, a bid to bend the Web to the will and values of the Communist Party -- to ensure, in the words of blogger Zhang Jialong, that “party organs, and not the Chinese grass roots, have the loudest voice on the country’s Internet.” The drive, to “sweep out porn, strike at rumors,” will run from mid-April until November, the party’s news portal Seeking Truth declared that part of the stiffer controls on freedom of expression and the Internet that have been imposed since President Xi Jinping took power in 2013.
benton.org/node/180668 | Washington Post
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