June 2014

Regulators revolt against Telefónica and E-Plus merger

Europe’s biggest telecoms takeover in a decade has triggered a rare mass revolt of national competition watchdogs, who want Brussels to toughen up its conditions on Telefónica’s merger with KPN’s E-Plus.

At a recent meeting to review the European Commission proposal to approve the €8.8bn tie-up in Germany, just two of 12 national authorities present voted in favour of the planned competition remedies, according to two officials involved. The deal is one of the most important tests of Brussels’ resolve in recent years, as it will clarify the antitrust constraints on an industry hungry for mergers in national markets. It came amid vocal pressure from politicians, including Chancellor Angela Merkel of Germany, to ensure competition rules do not hamper investment in infrastructure.

FCC E-Rate Reforms Don't Rate With Education Groups

Count the National Education Association, the Parent-Teacher Association, the American Federation of Teachers and a whiteboard full of other education associations as very concerned about Federal Communications Commission Chairman Tom Wheeler's proposed changes to the E-rate program a subsidy for advanced communications services to schools and libraries, which they argue could be a rush to reform that jeopardizes the program.

The FCC signaled a vote for the July 11 meeting on reforms to E-rate, which is part of the FCC's efforts to make wireless more of a player and migrate away from voice subsidies, which will eventually be zeroed out. Said one industry source, the education groups were looking for more money over a longer period of time than they will be getting. The source suggested it could be Chairman Wheeler's next big fight.

The groups, who are beneficiaries of the E-rate program, are concerned that the FCC cannot support a five-year, $5 billion investment in Wi-Fi connections without raiding funding for ongoing broadband connectivity. They also don't like a per-pupil allocation formula for schools, a one-size-fits-all approach that they argue is grossly oversimplified.

Minnesota-wide broadband goal unlikely to be met by 2015

Though slow in coming, access to high-speed Internet around the state of Minnesota is on the rise. This includes wired access with physical connections via copper, coaxial or fiber-optic technologies, and wireless from cellular operators AT&T and Verizon.

Wireless, though, usually complements and does not replace physical access for most consumers because of caps on data usage. Verizon Wireless, Minnesota's wireless-Internet leader, has blanketed most of the state with high-speed service.

Rival AT&T is hot on Verizon's heels, offering rapidly expanding wireless-data service of its own. This means most outstate Minnesotans, if they have AT&T or Verizon, have Internet-access speeds that would have seemed like science fiction a decade ago -- provided they're willing to access their carrier's data plan.

Rep Walden Responds to Latest E-Rate Reform Proposal

House Communications and Technology Subcommittee Chairman Greg Walden (R-OR) responded to Federal Communications Commission Chairman Tom Wheeler’s latest proposal regarding the Universal Service Fund’s Schools and Library and Program, expressing his support.

FCC Announces Tentative Agenda for July Open Meeting

Federal Communications Commission Chairman Tom Wheeler announced that the following items will be on the tentative agenda for the next open meeting scheduled for July 11, 2014:

Modernizing E-Rate to Deliver Digital Learning: The Commission will consider a Report and Order to modernize the E-Rate program and expand support for WiFi connectivity for schools and libraries. The R&O seeks to close the WiFi gap, make E-Rate dollars go farther, and deliver faster, simpler and more efficient applications and other processes.
Connect America Fund Rural Broadband Experiments: The Commission will consider a Report and Order establishing a budget and a methodology for selecting winning applications for the Connect America rural broadband experiments adopted by the Commission in the January Tech Transitions Order.
Closed Captioning of Internet Protocol-Delivered Video Clips: The Commission will consider a Second Order on Reconsideration and a Second Further Notice of Proposed Rulemaking that revisits the Commission’s determinations regarding the captioning of video clips when delivered using Internet protocol, ensuring that individuals with hearing disabilities are able to enjoy the full benefits of broadband technology.

House Republicans: FTC should take the lead on net neutrality

Republicans on a House panel want the country’s antitrust regulators, not its telecom regulators, to take the lead on net neutrality.

During a hearing held by the House Judiciary Subcommittee on Antitrust Law, Republicans questioned the need for net neutrality regulation from the Federal Communications Commission (FCC).

“The Internet has flourished precisely because it is a deregulated market” and should be kept open through “vigorous application of the antitrust laws,” House Judiciary Chairman Bob Goodlatte (R-VA) said.

“As regulatory proceedings continue to stretch on, a question I have is whether there might be a more efficient and more effective way to safeguard against potential discriminatory behavior than federal rulemaking,” Subcommittee Chairman Spencer Bachus (R-AL) said in his opening statement. “That is where antitrust law comes in.”

He also pushed for evidence that Internet providers are behaving in a way that warrants FCC intervention in the form of net neutrality rules and said the agency should conduct a cost-benefit analysis “before regulating such an important component of our national economy.”

Joint Statement from the Office of the Director of National Intelligence and the Department of Justice on the Declassification of Renewal of Collection Under Section 501 of the Foreign Intelligence Surveillance Act

The Justice Department and the Office of the Director of National Intelligence released the following joint statement: Consistent with the President’s March proposal, in May, the House of Representatives passed H.R. 3361, the USA FREEDOM Act, which would, if enacted, create a new mechanism for the government to obtain this telephony metadata pursuant to individual orders from the Foreign Intelligence Surveillance Court, rather than in bulk. The bill also prohibits bulk collection through the use of Section 215, FISA pen registers and trap and trace devices, and National Security Letters.

Overall, the bill’s significant reforms would provide the public greater confidence in our programs and the checks and balances in the system, while ensuring our intelligence and law enforcement professionals have the authorities they need to protect the Nation.

The Administration strongly supports the USA FREEDOM Act. We urge the Senate to swiftly consider it, and remain ready to work with Congress to clarify that the bill prohibits bulk collection as noted above, as necessary.

Given that legislation has not yet been enacted, and given the importance of maintaining the capabilities of the Section 215 telephony metadata program, the government has sought a 90-day reauthorization of the existing program, as modified by the changes the President announced in early 2014. Consistent with prior declassification decisions, in light of the significant and continuing public interest in the telephony metadata collection program, the Director of National Intelligence, James Clapper, has declassified the fact that the government’s application to renew the program was approved by the FISC.

The order expires on Sept 12, 2014. The Administration is undertaking a declassification review of this most recent court order and an accompanying memorandum opinion for publication.

It’s Official: JSA Unwinding Clock Starts

The Federal Communications Commission sent out official notice that June 19 was the effective date of its new joint sales agreement (JSA) restrictions, which make some JSA's attributable as ownership interest.

That means that same-market JSA's that broker more than 15% of a station's weekly ad time (which is most JSA's), and whose attribution will put an owner over the FCC's local ownership limits, will have two years from that date, or June 19, 2016, to unwind them or take other action to come into compliance with the rules.

Viacom Motion To Dismiss Cablevision Suit Denied

Federal Court denied Viacom’s request to dismiss a suit by Cablevision Systems that charges the programming for antitrust violations in the way it bundles its cable networks.

In the suit, filed in February 2013, Cablevision charged that Viacom was forcing it to carry and pay for 14 low-rated networks in order to carry popular channels like Nickelodeon, MTV and Comedy Central. The cable operator also claims Viacom is unlawfully block-booking in the way it sells its channels.

“We are gratified the Court has ruled that Cablevision has stated a valid antitrust claim against Viacom for illegal channel tying,” Cablevision said. “We continue to believe that Viacom’s tying of its popular networks to carriage of its lesser-watched ancillary networks is illegal, anti-consumer, and wrong. We look forward to further pressing our case at the next stage of the proceeding.”

The ruling was made by the US District Court for the Southern District of New York.

Glenn Greenwald On Why Privacy Is Vital, Even If You 'Have Nothing To Hide'

Journalist Glenn Greenwald defended the value of digital privacy and slammed those who dismiss its importance during a stop on his national book tour.

“We all need places where we can go to explore without the judgmental eyes of other people being cast upon us," he said. "Only in a realm where we’re not being watched can we really test the limits of who we want to be. It’s really in the private realm where dissent, creativity and personal exploration lie.” He said that people who downplay the importance of privacy typically say, "I have nothing to hide." But, he added, those people aren't willing to publish their social media and email passwords.

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