June 11, 2014 (Removing Barriers to Competitive Community Broadband)
Ding Dong, the wicked majority leader is…
BENTON'S COMMUNICATIONS-RELATED HEADLINES for WEDNESDAY, JUNE 11, 2014
Media Ownership in the 21st Century (preview below) on today’s agenda http://benton.org/calendar/2014-06-11/
OWNERSHIP
FCC: Court Can't Review Public Notice on Sharing Deals
Analyst: FCC Ownership Should Reflect Digital Competition
NAB: FCC Shouldn't Review Media Rules on 'Unsupported Opinion'
FCC's Lake Signals to Hill That Deals Have Been Getting Done
House Commerce Democrats Call for Merger Hearings
Don't Let Sprint Buy T-Mobile - Susan Crawford op-ed
Google Pays $500M for Satellite Maker Skybox, for Photos and Eventually Internet Access [links to web]
Moody’s questions benefits of telecoms mergers
INTERNET/BROADBAND
FCC Chief Plans Action on Wi-Fi in Schools
Removing Barriers to Competitive Community Broadband - Tom Wheeler editorial
Cisco: Broadband providers should not treat all bits the same
IP Transition Hearing Emphasizes Consumer Protections and Title II
Verizon bungled attempts to get fiber in NYC buildings, landlords say
Winston-Salem Gigabit Network is a Key Win for AT&T [links to web]
Announcing the Coalition For Local Internet Choice - press release [links to web]
Surprise! Cisco data says we still use a lot of broadband - mostly for video [links to web]
Wyoming’s State Broadband Gets Huge Speed Boost [links to web]
WIRELESS/SPECTRUM
FCC Seeks Comment on T-Mobile's Petition Regarding Data Roaming - public notice
Report: US grabbed one-third of LTE smartphone market in Q1 [links to web]
TELEVISION
Media groups call for crackdown on cable, satellite TV prices
Local TV Broadcasters Deliver Front-Line Reporting in Emergencies - op-ed
Chairman Leahy pushes ‘narrow’ bill to keep satellite TV from going dark [links to web]
CONTENT
In win for libraries, court rules database of Google-scanned books is “fair use” [links to web]
Study says Fox News may ‘harden conservative views’ of its audience [links to web]
Music Industry Officials Agree on Need for Licensing Rule Changes, but Little Else [links to web]
Twitter and Facebook hoping to ride World Cup wave [links to web]
How Twitter Is Preparing For the World Cup [links to web]
Google Chromecast usage waning, report says [links to web]
ACCESSIILITY
FCC Launches Support Line for Consumers Who Are Deaf and Hard of Hearing Using American Sign Language over Videophone - press release [links to web]
SECURITY AND PRIVACY
Report: Cybercrime and espionage costs $445 billion annually [links to web]
GOVERNMENT PERFORMANCE
Survey: Up To 70 Percent Of Government IT Staff Will Depart Within 5 Years [links to web]
Survey Identifies Old IT Culprits As Top Barriers To More Open Government [links to web]
GOVERNMENT & COMMUNICATIONS
Supreme Court called into secrecy fight
POLICYMAKERS
Eric Cantor Defeated by David Brat, Tea Party Challenger, in Primary Upset [links to web]
STORIES FROM ABROAD
Moody’s questions benefits of telecoms mergers
EU-Mandated Switch to Pilot Texting Brings Risks [links to web]
MORE ONLINE
Black girls take on tech's diversity woes [links to web]
SmartAmerica Challenge: Harnessing the Power of the Internet of Things - press release [links to web]
OWNERSHIP
FCC: COURT CAN'T REVIEW PUBLIC NOTICE ON SHARING DEALS
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
The Federal Communications Commission has told the US Court of Appeals for the DC Circuit that it must dismiss the National Association of Broadcasters petition for review of the FCC's "staff-level" public on how the Media Bureau will vet TV station deals involving sharing arrangements. NAB says the guidance functions as a "categorical presumption" against such deals -- shared services agreements, joint sales agreements, and others -- which "adversely affects" NAB and its members by rendering such previously allowed deals invalid. The FCC says the guidance is to give broadcasters notice that TV station sales involving sharing agreements with associated financial arrangements like an option to purchase a station or guaranteed financing would get heightened and likely time-consuming reviews in case they wanted to rethink those given that guidance. Commission lawyers argue that the Media Bureau guidance issued in the March 12 public notice is not a final order -- NAB argues it is a final agency action -- and since the court's jurisdiction over FCC decisions extend "only to final orders," the court does not have jurisdiction to review it. “Congress did not intend that the court review a staff decision that has not been adopted by the Commission itself," the FCC said, quoting the DC court itself from a previous opinion. They also point out the appeals court has previously found that petitions for review filed after a bureau decision but before a final commission resolution are "incurably premature."
benton.org/node/185914 | Broadcasting&Cable
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ANALYST: FCC OWNERSHIP SHOULD REFLECT DIGITAL COMPETITION
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
The Federal Communications Commission should consider including pay TV (cable, satellite, telecommunications) and online video as relevant local market competitors to broadcasting. That is according to media analyst David Bank, a managing director at RBC Capital Markets, in prepared testimony for the June 11 media ownership hearing in the House Communications Subcommittee. He says that with broadcast TV controlling only about a third of the primetime audience, "it’s clear to us that broadcast TV regulation should probably consider a framework in which pay-TV in total as an ecosystem is a competitor to Broadcasting. This is the case in small and big markets alike." Then there is the Internet. "[T]he current regulatory framework was constructed in a media ecosystem that basically didn’t include the Internet. While it may have contemplated a broad PC-based Internet consumption environment, it certainly didn’t contemplate a Mobile application based ecosystem," he says.
benton.org/node/185893 | Broadcasting&Cable
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NAB: FCC SHOULDN'T REVIEW MEDIA RULES ON 'UNSUPPORTED OPINION'
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
The National Association of Broadcasters plans to tell Congress that the Federal Communications Commission has failed to determine whether its media ownership rules service the public, and needs to base its review of those rules on evidence, not "unsupported opinion." That is according to the prepared testimony of NAB exec Jane Mago for the June 11 "Media Ownership in the 21st Century" hearing in the House Communications Subcommittee. Mago will argue that broadcasters are subject to old rules that distort competition, while less-regulated competitors like cable and satellite grab audience share and ad revenues. Mago also points out that the FCC itself has previously found the newspaper-broadcast crossownership ban to be unnecessary -- a bipartisan trio for former chairs has also admitted it was still on the books for fear of upsetting Congress -- but yet the ban remains in place. The NAB is also unhappy that the FCC failed to complete its 2010 quadrennial rule review as required by Congress.
benton.org/node/185878 | Broadcasting&Cable
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FCC'S LAKE SIGNALS TO HILL THAT DEALS HAVE BEEN GETTING DONE
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
Federal Communications Commission Media Bureau chief Bill Lake says that the FCC has granted the sale of 36 full-power TV stations, representing 12 different deals, since mid-March, which it issued guidelines about deals with associated sharing arrangements. That is according to Lake in prepared testimony for the June 11 media ownership hearing in the House Communications Subcommittee. Lake outlined various steps the FCC has taken regarding media ownership rules, including making TV joint sales agreements (JSAs) over 15% of ad time attributable as ownership interest, new processing guidance from the Media Bureau on processing TV station license transfers involving JSAs and other sharing agreements (broadcasters have sued the FCC over both those), and the decision to combine the congressionally mandated 2010 and 2014 media ownership quadrennial reviews into what will become a 2016 review -- June 30, 2016 is the target date for completion. As to why the FCC has yet to produce a quadrennial review report to Congress years past the initial deadline, Lake pointed out that the FCC, under a previous chairman, had a media ownership item responsive to the review teed up in 2012 that could never get three votes needed for approval -- Republicans opposed it and some Democrats were concerned that the FCC had taken the action without sufficiently gauging its impact on ownership diversity. He said that the new timetable of June 2016 will allow for more input on how the market has changed since then.
benton.org/node/185912 | Broadcasting&Cable
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HOUSE COMMERCE DEMOCRATS CALL FOR MERGER HEARINGS
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
House Commerce Committee Democratic leaders have asked their Republican counterparts, who control the agenda, to hold hearings on the proposed Comcast/Time Warner Cable and AT&T/DirecTV mergers, and a Sprint/T-Mobile deal if that ever materializes. That request came in a letter from Reps Henry Waxman (D-CA) and Anna Eshoo (D-CA), the ranking members of the full committee and Communications Subcommittee, respectively, and Rep Doris Matsui (D-CA), to full committee Chairman Fred Upton (R-MI) and Subcommittee Chairman Greg Walden (R-OR).
benton.org/node/185940 | Broadcasting&Cable
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DON'T LET SPRINT BUY T-MOBILE
[SOURCE: Bloomberg, AUTHOR: Susan Crawford]
[Commentary] For the same reason the merger of AT&T and T-Mobile US didn’t go through in 2011, a Sprint/T-Mobile joinder shouldn't be permitted either: No matter how the deal is conditioned, it will cause a reduction in competition. We already have a highly concentrated mobile-phone marketplace. It's a "duopoly with a fringe": Two behemoths, Verizon Communications Inc. and AT&T, take home three-quarters of mobile revenue in the US. Their spectrum holdings, existing physical networks, powerful brands and lobbying heft create significant barriers to entry in an industry in which scale and scope are everything. Sprint, with about 16 percent market share, argues that combining with T-Mobile (13 percent) will create a viable third player. But if a Sprint/T-Mobile deal is approved, the combined entity will have less incentive to be disruptive and more incentive to raise prices than either of them have now as separate businesses. That matters even if you're not one of their customers. T-Mobile's aggressive marketing plans have driven Verizon Wireless and AT&T to act differently, offering better and cheaper family plans to some of their customers. [Crawford is a professor at the Benjamin N. Cardozo School of Law]
benton.org/node/185911 | Bloomberg
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INTERNET/BROADBAND
WI-FI FOR SCHOOLS
[SOURCE: New York Times, AUTHOR: Edward Wyatt]
Though the Federal Communications Commission spends $2.4 billion a year to provide schools and libraries with high-speed Internet connections, none of that has gone in recent years to pay for Wi-Fi connections -- something that is often available free in coffee shops, hotels and parks. FCC Chairman Tom Wheeler is said to want to change that. According to FCC officials who spoke on the condition of anonymity, Chairman Wheeler is planning to offer his fellow commissioners a proposed regulatory change to promote Wi-Fi in schools. Wheeler’s aim is to get the issue on the agenda for the FCC’s July 11 meeting. FCC Commissioners from both parties have expressed support for reforming E-Rate. Ajit Pai, the senior Republican commissioner, said last month that the FCC should consider reforms that are as broad as possible.
benton.org/node/185960 | New York Times
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REMOVING BARRIERS TO COMMUNITY BROADBAND
[SOURCE: Federal Communications Commission, AUTHOR: FCC Chairman Tom Wheeler]
Ironically, Chattanooga is both the poster child for the benefits of community broadband networks, and also a prime example of the efforts to restrict them. Tennessee is one of many states that have placed limits on the deployment of community networks. Tennessee’s law is restricting Chattanooga from expanding its network’s footprint, inhibiting further growth. The mayor told me how adjoining communities have asked to join the network, but cannot also be served by a simple extension of the broadband network because of the state law. In some of these communities, there is no available broadband service whatsoever. Commercial broadband providers can pick and choose who to serve based on whether there is an economic case for it. On the other hand, Mayor Berke told me that Chattanooga believes that it has a duty to ensure that all of its citizens have affordable broadband Internet access. I understand that, like any venture, community broadband there hasn’t always been a success. But a review of the record shows far more successes than failures. If the people, acting through their elected local governments, want to pursue competitive community broadband, they shouldn’t be stopped by state laws promoted by cable and telephone companies that don’t want that competition. I believe that it is in the best interests of consumers and competition that the FCC exercises its power to preempt state laws that ban or restrict competition from community broadband. Given the opportunity, we will do so. Removing restrictions on community broadband can expand high-speed Internet access in underserved areas, spurring economic growth and improvements in government services, while enhancing competition. Giving the citizens of Chattanooga and leaders like Mayor Berke the power to make these decisions for themselves is not only the right thing to do; it’s the smart thing to do.
benton.org/node/185959 | Federal Communications Commission
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CISCO: BROADBAND PROVIDERS SHOULD NOT TREAT ALL BITS THE SAME
[SOURCE: IDG News Service, AUTHOR: Grant Gross]
All bits running over the Internet are not equal and should not be treated that way by broadband providers, despite network neutrality advocates' calls for traffic neutral regulations, Cisco Systems said. A huge number of Internet-connected devices with a wide variety of traffic requirements, including billions of machine-to-machine connections, will come online over the next four years, Cisco predicted in its Visual Networking Index Global Forecast and Service Adoption. Some Web-based applications, including rapidly growing video services, home health monitoring and public safety apps, will demand priority access to the network, while others, like most Web browsing and email, may live with slight delays, said Jeff Campbell, Cisco's vice president for government and community relations. “We really have a multiplicity of applications and services that are now running across the network, some of which require dramatically different treatment than others," he said. Some network neutrality advocates have objected to US Federal Communications Commission Chairman Tom Wheeler's proposed rules that would allow broadband providers to engage in "commercially reasonable" traffic management. It's important that the FCC ensure an open Internet, but it's also important that "we have a robust network," Campbell said. The FCC should allow broadband providers to maintain quality of service "to ensure that some applications will run properly and effectively on the Internet," Campbell said. "That means using the intelligence of the network to ensure that those bits receive the quality of service they need."
benton.org/node/185898 | IDG News Service
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IP TRANSITION HEARING EMPHASIZES CONSUMER PROTECTIONS AND TITLE II
[SOURCE: Public Knowledge, AUTHOR: Ethan Jeans]
Public Knowledge’s Senior Staff Attorney Jodie Griffin recently testified before the Senate Commerce Committee’s Subcommittee on Communications, Technology, and the Internet in Washington. In a hearing entitled “Preserving Public Safety and Network Reliability in the IP Transition,” Jodie drove home the necessity of the fundamental values of the phone network carrying over to new technologies, as the IP transition moves forwards and underlying technologies continue to evolve in new and exciting directions. 100 million Americans still rely on traditional copper wire landlines; 85 million in said subset also have a mobile phone or other voice product. This can be interpreted one of two ways: either (a) political theorists have had it wrong all, and humans are fundamentally irrational to the point that they enjoy writing two checks, or (b) traditional phone services offer users in the marketplace a service they value. And yet, reports have surfaced indicating consumers are being forced off of legacy copper systems by providers, which heightens the need for more hardened protections in IP-based systems to ensure public safety. Ensuring that new technologies protect basic values with similar robustness to historic systems is critical, as is preventing rural and disadvantaged citizens from falling through the gaps during the transition process. As Senator Cory Booker highlighted in reference to the loss of services on Fire Island (NY) and in Mantoloking (NJ) following Hurricane Sandy, transitions have the potential to quite significantly impact consumers in ways not evident at the outset.
benton.org/node/185934 | Public Knowledge
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VERIZON BUNGLED ATTEMPTS TO GET FIBER IN NYC BUILDINGS, LANDLORDS SAY
[SOURCE: ars technica, AUTHOR: Jon Brodkin]
With Verizon struggling to bring FiOS to every corner of New York City as promised, the company has been arguing with landlords about gaining access to buildings where tenants might want to buy Verizon's fiber-based Internet, phone, and TV service. Verizon's fiber now passes buildings in "90 percent of the Bronx, 89 percent of Brooklyn, 94 percent of Manhattan, 90 percent of Queens and virtually the entirety of Staten Island," the company says. That's short of the 100 percent Verizon was supposed to achieve by June 30, 2014 according to its franchise agreement. And the percentage of buildings where residents can actually buy FiOS is lower. Verizon now blames Sandy but claimed it was "ahead of schedule" after the storm. "The various percentages refer to the amount of fiber in the streets and avenues, our obligation. The numbers have nothing to do with building penetration," Verizon spokesperson John Bonomo said. Verizon has been filing petitions with the State Public Service Commission to gain access to several hundred buildings in order to conduct pre-installation surveys and then wire up the buildings. In some cases these petitions have allowed Verizon access, but other attempts were plagued by miscommunications and mistakes.
benton.org/node/185909 | Ars Technica
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WIRELESS/SPECTRUM
FCC SEEKS COMMENT ON DATA ROAMING
[SOURCE: Federal Communications Commission, AUTHOR: Public Notice]
On May 27, 2014, T-Mobile USA filed a petition for an expedited declaratory ruling that would provide guidance on the criteria used for determining whether the terms of a data roaming agreement meet the “commercially reasonable” standard set forth in the Federal Communications Commission’s data roaming rule (in Section 20.12(e)). Section 20.12(e) requires facilities-based providers of commercial mobile data services to offer roaming arrangements to other such providers on “commercially reasonable terms and conditions.” T-Mobile contends that providers need this guidance to evaluate the commercial reasonableness of terms offered in individual negotiations and to reach agreements. In this public notice, we seek comment on the Petition. Interested parties may file comments and reply comments on the above Petition on or before July 10, 2014. Reply comments are due August 11. All pleadings must reference WT Docket No. 05-265.
benton.org/node/185942 | Federal Communications Commission
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TELEVISION
MEDIA GROUPS CALL FOR CRACKDOWN ON CABLE, SATELLITE TV PRICES
[SOURCE: The Hill, AUTHOR: Kate Tummarello]
A coalition of media advocacy groups is pressing lawmakers to investigate the billing practices of cable and satellite companies. “Industry-wide practices, such as erroneous overbilling, equipment rental fees and inflated or unnecessary ‘extra’ charges, are the result of an uncompetitive market structure and all contribute to rising monthly cable and satellite TV bills,” the groups wrote to lawmakers. The letters -- signed by broadcast advocacy group TVFreedom along with Media Alliance and the Hispanic Institute, which advocate for media diversity -- were sent to the chairmen and ranking members of the Senate Commerce Committee and Subcommittee on Communications and the House Energy and Commerce Committee and Subcommittee on Communications. Lawmakers should examine the lack of competition in the television marketplace, which allows cable and satellite companies to charge high prices for television programming through difficult-to-understand bills loaded with unexpected charges, the groups said. “The marketplace has failed to adequately address significant annual increases in consumers’ monthly pay-TV bills,” the letters said. “As a result, consumer choice for video service across the country remains limited and family budgets must bear the heavy financial burden of ever-escalating monthly pay-TV bills.”
benton.org/node/185876 | Hill, The | B&C
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LOCAL TV BROADCASTERS DELIVER FRONT-LINE REPORTING IN EMERGENCIES
[SOURCE: Broadcasting&Cable, AUTHOR: Robert Kenny]
[Commentary] Moore, Oklahoma. Joplin, Missouri. New Orleans, Louisiana. The names of these cities are crystallized in the minds of Americans as the sites of catastrophic destruction and loss of life due to natural disasters. However, in the dark cloud that hangs over the memory of these incidents, there is a silver lining: Many lives were saved because of the diligence, service, and sacrifice of local news stations in the face of dire circumstances. When Americans seek breaking news developments and real-time updates during times of crisis and emergency, they instinctively turn to their local broadcasters. They are a first line of defense for families, friends and neighbors when potentially life-changing weather events threaten their communities. Today, millions of Americans rely on cable TV’s lifeline “basic service tier” to access broadcast channels for their news, weather updates and emergency alerts. Currently, pay-TV providers are required to place broadcast networks on this basic tier, so that all subscribers -- regardless of how much they pay for a particular package -- will have access to their local news. However, pay-TV wants to strip this requirement in the reauthorization of a satellite TV bill -- a move that would force America’s cable TV subscribers into paying higher prices to access those same broadcast stations on more expensive, premium packages. This may leave some families without cable TV because they simply no longer will be able to afford it. Given the important role of local TV broadcasters as front-line reporters in emergencies and the reliance of TV viewers on those live emergency updates, alerts and warnings, Congress should do all it can to defend and preserve the lifeline basic service tier on cable TV systems for all Americans. [Kenny is the director of public affairs for TVfreedom.org, a coalition of local broadcasters, community advocates, network TV affiliate associations]
benton.org/node/185873 | Broadcasting&Cable
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GOVERNMENT & COMMUNICATIONS
SUPREME COURT CALLED INTO SECRECY FIGHT
[SOURCE: The Hill, AUTHOR: Julian Hattem]
The Supreme Court is being called to weigh in on a years-long Freedom of Information Act lawsuit. The Electronic Frontier Foundation (EFF) asked the high court to decide whether the Obama administration should hand over a secret memo allowing the FBI to obtain phone records without any judicial process. "The public has a fundamental right to know how the federal government is interpreting surveillance and privacy laws," EFF senior counsel David Sobel said. "If the [Justice Department’s] Office of Legal Counsel has interpreted away federal privacy protections in secret, the public absolutely needs access to that analysis. There is no way for the public to intelligently advocate for reforms when we're intentionally kept in the dark," he added. The disputed memo first came to light in a 2010 report from the department’s inspector general.
benton.org/node/185883 | Hill, The
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STORIES FROM ABROAD
QUESTIONING MERGERS
[SOURCE: Financial Times, AUTHOR: Daniel Thomas]
Moody’s, the rating agency, warned that the telecoms industry could see limited benefits from sector consolidation because of its need to address competition concerns. Mergers in the telecoms sector may not reduce competitive pressures on margins and profits as much as companies have hoped. Moody analysts point to the stringent competition remedies required to win EU approval of a merger between two telecoms groups in Ireland. High quality global journalism requires investment. Moody’s found that the requirement for Hong Kong’s Hutchison Whampoa to sell part of its network capacity to mobile virtual network operators (MVNOs) meant that price competition was unlikely to ease after it acquired O2 Ireland. Instead, the analysts said that cable operator UPC, which is owned by Liberty Global, will be the main beneficiary as its agreement with Hutchison Whampoa will allow it to improve its product offerings and cross-sell mobile services to its customers.
benton.org/node/185949 | Financial Times
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