June 10, 2014 (Broadband shouldn’t be like cable TV)
BENTON'S COMMUNICATIONS-RELATED HEADLINES for TUESDAY, JUNE 10, 2014
Today’s busy agenda http://benton.org/calendar/2014-06-10/
INTERNET/BROADBAND
Broadband shouldn’t be like cable TV. Why consumers should care about peering. - analysis
Netflix got worse on Verizon even after Netflix agreed to pay Verizon
Netflix: We’ll drop the anti-Verizon error messages. For now.
Netflix won't budge in dispute with Verizon over video quality
Verizon vs. Netflix: What's this really about? A Q&A with Verizon's vice president David Young [links to web]
Netflix ISP Speed Index for May - press release
Verizon will miss deadline to wire all of New York City with FiOS
Technology needs continued innovation not constraining regulation - op-ed [links to web]
OWNERSHIP
The FCC's Sisyphean Task - analysis
GOP: FCC Rules Hamper Broadcast Ability To Compete
Tech group calls on feds to block Comcast merger
If Sprint buys T-Mobile, it may have to slash prices: analysts
Yahoo's mobile chief: Acquisition spree about playing 'catch-up' [links to web]
WIRELESS/SPECTRUM
Report Finds Average Wi-Fi Offload Speed (for Cellular) at 5.3 Mbps [links to web]
Talking WISP Consolidation with JAB Broadband Co-Founder [links to web]
Two-thirds of the world’s mobiles are dumb phones. Meet the company getting them online [links to web]
The Internet of things isn’t about things. It’s about cheap data. [links to web]
Amtrak wants better Wi-Fi [links to web]
More Airports Adopt Free Wi-Fi [links to web]
TELEVISION
AT&T Settles Suit Over Refusal to Carry Al Jazeera [links to web]
Al Jazeera Wants Case With AT&T Kept Private [links to web]
Small pay-TV provider feels squeeze play over Dodgers channel - analysis [links to web]
CONTENT
NCAA Reaches $20 Million Settlement With Ex-Players Over Videogames [links to web]
Free Speech Or Illegal Threats? Justices Could Say [links to web]
Welcome to the era of big, bad open information. Context needed. - op-ed [links to web]
EDUCATION
Major Policy Shifts, Economic Forces Shape the Ed-Tech Market - analysis [links to web]
ACCESSIBILITY
FCC Chairman Wheeler Honors Innovators In Accessibility Communications Technology With Annual Awards - press release
HEALTH
Text Messaging Program Helps Smokers Fight the Urge to Light Up - George Washington University press release [links to web]
EMERGENCY COMMUNICATIONS
First Response won’t use FirstNet - op-ed
PRIVACY/SECURITY
Big tech walking fine line on data
How Apple’s new software makes it harder for retailers to track your movements [links to web]
GOVERNMENT & COMMUNICATIONS
President Obama's Destructive War on the Media - editorial
NSA: Our systems are so complex we can’t stop them from deleting data wanted for lawsuit
Judge: NSA doesn’t have to keep all data as part of key surveillance lawsuit [links to web]
Why we need to stop freaking out about the NSA and get on with business
STORIES FROM ABROAD
The EU reports that it’s falling behind in broadband service and digital skills - AEI op-ed
2nd China Army Unit Implicated in Online Spying [links to web]
MORE ONLINE
The Rise of Innovation Districts: A New Geography of Innovation in America - research [links to web]
INTERNET/BROADBAND
BROADBAND SHOULDN’T BE LIKE CABLE TV. WHY CONSUMERS SHOULD CARE ABOUT PEERING.
[SOURCE: GigaOm, AUTHOR: Stacey Higginbotham]
[Commentary] When you’re curled up on the couch, set to watch the second season of Orange is the New Black, and the video stream pixelates or just stops, it’s the modern-day equivalent of the “all circuits are busy now” message one can still hear on landline phones (or one could, if people were calling on them). And the issues behind both problems are similar -- somewhere in the network there is too much demand and not enough capacity. But unlike the days of landline phones, when one industry controlled the calling experience (telephone companies that were forced by FCC regulations to connect calls on their networks), our broadband networks and the internet itself is controlled by varied industries and there are no rules around interconnections. This is why we’re seeing Netflix and various ISPs battling it out in the press. The only broadband that matters is the broadband you have access to at your home. In most places, that’s not a competitive market. And with fights over interconnection agreements and the possibility that network neutrality transforms into paying for priority access, consumers get screwed again. Take it from me. Having a bunch of bad choices is like having no choice at all.
benton.org/node/185787 | GigaOm
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NETFLIX GOT WORSE ON VERIZON EVEN AFTER NETFLIX AGREED TO PAY VERIZON
[SOURCE: ars technica, AUTHOR: Jon Brodkin]
When Netflix agreed to pay Comcast for a direct connection to the ISP's network, video performance improved immediately. Verizon subscribers aren't so lucky. Although Netflix and Verizon confirmed on April 28 that they had struck a paid peering deal, performance continued to drop in May and could remain poor for months while the companies upgrade infrastructure. "Verizon FiOS is down two slots and now ranks behind DSL providers Frontier and Windstream," Netflix wrote after releasing its monthly speed index. In the US, Netflix performance on Verizon FiOS dropped from 1.99Mbps in April to 1.90Mbps in May, and performance on Verizon DSL dropped from 1.08Mbps to 1.05Mbps. This is the average performance of all Netflix streams on each ISP's network. The drops are small, but they show that the paid peering deal didn't make any immediate impact.
benton.org/node/185818 | Ars Technica
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NETFLIX: WE’LL DROP THE ANTI-VERIZON ERROR MESSAGES. FOR NOW.
[SOURCE: Washington Post, AUTHOR: Brian Fung]
Netflix says it will stop pinning the blame for laggy streaming speeds on Verizon and other Internet providers, potentially putting an end to a weeklong dispute between broadband companies and the streaming video service. The error messages, which began popping up for some users as part of a trial in May, told subscribers that their stuttering connections were the result of congestion on their ISP networks. The claim led Verizon to fire back with a cease-and-desist letter demanding that the notices stop. Netflix will suspend the messages on June 16, according to a company blog post. But spokesman Joris Evers denied that the decision had anything specific to do with Verizon's complaint. "We do tests of different lengths," said Evers. "That doesn’t mean there won’t be another one, and it doesn't mean there won’t be multiple ones that run in concert after this." Netflix will examine the results of the current test to see whether users called customer service more or less often and whether they watched more or less video, among other things.
benton.org/node/185810 | Washington Post | The Hill | Revere Digital | GigaOm
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NETFLIX-VERIZON DISPUTE
[SOURCE: IDG News Service, AUTHOR: John Ribeiro]
Netflix defended its error messages to customers that blamed Verizon Communications' network, despite a cease-and-desist notice from the broadband service provider. In a reply to Verizon, Netflix's General Counsel David Hyman wrote that the message cited by Verizon merely lets Netflix customers know that the Verizon network is crowded. Netflix said it had determined that by calculating the difference between the speed at which traffic was handled during peak and non-peak hours. The video streaming company, however, said that the limited 'transparency' tests that had led to customers getting the error message would end June 16, though the company would evaluate rolling it out more broadly. Regardless of the specific test, Netflix will continue to work on ways to communicate network conditions to its consumers, Hyman wrote, suggesting that the dispute between the two companies is far from settled. Hyman said that Verizon was trying to shift blame for its network problems, citing Verizon's unwillingness to augment its access ports to major Internet backbone providers. He said it was Verizon's responsibility to ensure its customers get the level of service they pay for, by ensuring that the network including the interconnection points have adequate capacity to meet customer's data demands.
benton.org/node/185849 | IDG News Service | WashPost
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NETFLIX ISP SPEED INDEX FOR MAY
[SOURCE: Netflix, AUTHOR: Joris Evers]
We have just added May data to the Netflix ISP Speed Index, our monthly update on which Internet Service Providers (ISPs) provide the best prime time Netflix streaming experience. The Netflix ISP Speed Index aims to provide transparency and help consumers understand the Internet access they’re actually getting from their ISP. The average Netflix stream is about 2 Mbps (with most streams ranging from 256Kbps to 5.8Mbps), a fraction of the bandwidth most consumers purchase from their broadband provider. Still, in some cases, people are unable to enjoy a high quality Netflix experience. As part of this transparency campaign, we started a small scale test in early May that lets consumers know, while they’re watching Netflix, that their experience is degraded due to a lack of capacity into their broadband provider’s network. We are testing this across the US wherever there is significant and persistent network congestion. This test is scheduled to end on June 16. Some broadband providers argue that our actions, and not theirs, are causing a degraded Netflix experience. Netflix does not purposely select congested routes. We pay some of the world’s largest transit networks to deliver Netflix video right to the front door of an ISP. Where the problem occurs is at that door -- the interconnection point -- when the broadband provider hasn’t provided enough capacity to accommodate the traffic their customer requested. [Evers is part of the communications team at Netflix]
benton.org/node/185831 | Netflix | Revere Digital | ars technica
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VERIZON WILL MISS DEADLINE TO WIRE ALL OF NEW YORK CITY WITH FIOS
[SOURCE: ars technica, AUTHOR: Jon Brodkin]
In April 2008, Verizon signed a franchise agreement in which it promised the New York City Department of Information Technology and Telecommunications (DoITT) that it would build its "state-of-the-art fiber-optic network throughout the entire City by mid-year 2014." The June 30, 2014 deadline is about to pass without Verizon meeting the requirement. The company is blaming Hurricane Sandy from October 2012 -- even though Verizon was still claiming to be "ahead of schedule" in April 2013.
benton.org/node/185784 | Ars Technica
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OWNERSHIP
THE FCC'S SISYPHEAN TASK
[SOURCE: Benton Foundation, AUTHOR: Andrew Jay Schwartzman]
[Commentary] Sisyphus, you may recall from high school days, was sentenced to an eternity of rolling a boulder uphill only to watch it roll back down. Section 202(h) of the 1996 Telecommunications Act gave the Federal Communications Commission the Sisyphean task of reviewing all of its broadcast ownership rules every two years (later extended to four) and determining whether each of them continue to be "necessary in the public interest." On April 15, the FCC voted to start the latest Section 202(h) proceeding by issuing an order initiating the 2014 Quadrennial Review. Even though the FCC has attempted to wrap the last Quadrennial Review into the new one, the Commission has already been hauled into court, and more judicial proceedings will take place even as the FCC receives and considers comments from interested parties. From a public interest perspective, there are positive and negative aspects to what the FCC did, and didn’t do, in starting the 2014 Quadrennial Review. This post focuses on those aspects of the FCC’s action and related matters along the way. The most complicated part of all this is just beginning. Whenever the FCC does anything important, somebody takes it to court. Three appeals (technically, they are “petitions for review”) have been filed with respect to the April 15 decision in the District of Columbia. Once it is finally determined which court or courts will hear the appeals, briefs will be filed, probably by early fall. Then there will be an oral argument, perhaps by the end of the year or early next year. Meanwhile, the FCC will be accepting comments on the 2014 Quadrennial Review, with a decision also likely early next year. Then, depending on what has already happened in the courts, everyone will appeal that decision. After that, everyone can look forward to the 2018 Quadrennial Review, when it starts all over again.
http://benton.org/node/185777
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GOP: FCC RULES HAMPER BROADCAST ABILITY TO COMPETE
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
The House Communications Subcommittee Republican majority is clearly looking to deregulate broadcasters they see as competitively disadvantaged on the regulatory front. That is according to a copy of the majority staff memo for the hearing on "Media Ownership in the 21st Century." "As broadcasters -- and newspapers -- face increasing competition for Americans’ attention, additional regulatory flexibility will permit them to increase efficiencies and compete against unregulated competitors," said the majority staff in the memo. Among the topics of conversation will be the Federal Communications Commission's continued newspaper/broadcast crossownership ban. Among the ownership rules the memo suggests are on the table for discussion at the June 11 hearing are, in addition to the newspaper/broadcast crossownership ban: Local TV ownership limits (the duopoly rule); local radio ownership limits; the national cap (39%) on one TV station group’s percentage of households; diversity issues radio/TV crossownership rules, prohibitions on owning more than one broadcast network. Some Republicans joined broadcasters in their unhappiness with FCC decisions to make most TV station joint sales agreements (JSAs, those over 15% of weekly ad sales) attributable as ownership interest, and the Media Bureau's guidance on how it will view sharing agreements with associated financial arrangements.
benton.org/node/185806 | Broadcasting&Cable
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TECH GROUP CALLS ON FEDS TO BLOCK COMCAST MERGER
[SOURCE: The Hill, AUTHOR: Kate Tummarello]
A group representing tech industry giants is calling on regulators to block the proposed merger of Comcast and Time Warner Cable. Responding to questions from Sen Al Franken (D-MN), who has vocally opposed the merger, the Computer and Communications Industry Association encouraged regulators and lawmakers to oppose the merger. “Regulators should block this merger, not only for the good of innovation, the Internet industry and of consumers; but also for the sanctity of antitrust law itself,” Ed Black, president of the CCIA, wrote. The CCIA represents companies in the tech and telecom sectors, including Google, Facebook, Yahoo, Microsoft, TiVo, Aereo, T-Mobile and Sprint. Black said his group opposes the merger between two of the country’s largest cable companies and Internet providers because it would increase the company’s “bottleneck market power,” giving it too much leverage when dealing with Internet users and websites. The CCIA “is concerned that this merger poses a significant threat to innovation and competition in many parts of the marketplace, including ... the websites, platforms and online services that the vast majority of Americans use everyday,” the letter said.
benton.org/node/185835 | Hill, The | The Wrap
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IF SPRINT BUYS T-MOBILE, IT MAY HAVE TO SLASH PRICES: ANALYSTS
[SOURCE: Reuters, AUTHOR: Marina Lopes]
If Sprint Corp acquires T-Mobile US, it could save up to $6.6 billion on network, equipment and operating costs, but it will have to slash its prices to match the target company's steep discounts, analysts said. Sprint, under Chairman Masayoshi Son, has been hesitant to join other carriers in cutting fees because a decline in revenue would hurt its stock price, analysts say. Its shares have risen 8 percent since Dec. 12 on speculation it was looking to acquire T-Mobile from Deutsche Telecom AG. "I think he's realized he's between a rock and a hard place. Sprint’s prices are much too high, but if Sprint cuts prices, its stock will fall," said Craig Moffett, lead analyst at MoffettNathanson. "They don't come close to justifying their stock price." The price differential is just one hurdle that Sprint, which is 80 percent owned by Japan's SoftBank Corp, would face if it pursues a deal to buy T-Mobile. Unease about whether Sprint can overcome regulatory hurdles sent its stock down 9.3 percent to $8.77 since details emerged of a potential bid. Sprint customers spend an average of $62 a month, compared with $50 for T-Mobile. "It is not a sustainable situation. If the companies merge, they will need uniform pricing across the company," said Michael McCormack, a lead analyst at Jefferies.
benton.org/node/185837 | Reuters
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ACCESSIBILITY
FCC CHAIRMAN WHEELER HONORS INNOVATORS IN ACCESSIBILITY COMMUNICATIONS TECHNOLOGY WITH ANNUAL AWARDS
[SOURCE: Federal Communications Commission, AUTHOR: Press release]
Federal Communications Commission Chairman Tom Wheeler today announced winners of the third annual Awards for Advancement in Accessibility (Chairman's AAA), which honors innovators who develop communications technology for people with disabilities. The Chairman presented the awards at a ceremony on June 9, 2014 at the M-Enabling Summit in Arlington (VA), where the award- winning technology was displayed. The Chairman’s AAA, a project of the FCC’s Accessibility and Innovation Initiative (A&I Initiative), recognizes outstanding private and public sector ventures in communications technology accessibility and innovation. Part of the A&I Initiative’s goal to facilitate ongoing exchanges among industry, assistive technology companies, app developers, government representatives and consumers to share best practices and solutions for accessible communications technologies. “The potential of broadband-enabled technology to improve the lives of Americans living with disabilities is almost limitless -- but only if that technology is accessible,” said Chairman Wheeler. “I’m glad that these awards can help spark the development of new and creative technologies that furthers the important goal of making communications accessible for all Americans.” Winners were chosen for seven categories: Advanced Communication Services (ACS), Employment Opportunities, Closed Captions, Intellectual and Developmental Disabilities, Mobile Web Browsers, Social Media and Video Description.
benton.org/node/185833 | Federal Communications Commission
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EMERGENCY COMMUNICATIONS
FIRST RESPONSE WON’T USE FIRSTNET
[SOURCE: Medium, AUTHOR: Bill Schrier]
[Commentary] The First Responder Network Authority (FirstNet) is designing a nationwide wireless broadband LTE network for use by public safety. “Public safety” specifically includes traditional first responders -- law enforcement, firefighting and emergency medical response. But “public safety” also includes other services such as electrical and water utilities, transportation and even building inspectors --having structures built to withstand hurricanes and earthquakes is definitely a “public safety” issue! In the FirstNet design process, we emphasize “first response”. We’ve developed a number of scenarios for such responses, for example school shootings, SWAT team actions, home and apartment fires, automobile accidents with injuries, and so forth. We think about scenarios where first responders are racing to a scene, lights flashing and sirens blaring, and what information they’ll be pulling down wirelessly to their smartphones or tablet computers to support the response. But, while most of the first responders to such incidents use a public safety wireless network only sparingly, if at all, responders will make considerable use of FirstNet once the initial situation on the scene is stabilized. In the aftermath, 4G LTE networks, including FirstNet, will be invaluable to dispatch centers and incident commanders. [Schrier is a former CTO City of Seattle now with Office of the Chief Information Office, State of Washington]
benton.org/node/185800 | Medium
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PRIVACY/SECURITY
WALKING FINE LINE
[SOURCE: Politico, AUTHOR: Katy Bachman]
A year after Edward Snowden shocked citizens with details of how much of their lives are being snapped up by the National Security Agency, technology giants have sounded alarms about the government’s practices -- but maintained near radio silence about their own data-collection efforts. The companies, which themselves collect increasingly granular bits of data on users to fuel advertising revenue, have taken few steps to curtail their own corporate data practices. Think of it as the Internet’s version of a marketing Jedi mind trick. If everyone is focused on the government’s surveillance, maybe people won’t zero in on what companies have. The response from Silicon Valley shows that while the Snowden leaks have sparked fears in the industry about a damaged reputation, they haven’t prompted companies to rethink their basic business models -- which produce the very data the NSA covets. And a privacy marketing war with products and services that give consumers more control over their data hasn’t really materialized, to the dismay of advocacy groups and regulators.
benton.org/node/185852 | Politico
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GOVERNMENT & COMMUNICATIONS
PRESIDENT OBAMA'S DESTRUCTIVE WAR ON THE MEDIA
[SOURCE: Bloomberg, AUTHOR: Albert Hunt]
[Commentary] Few presidential candidates enjoyed better press than Barack Obama in 2008. He reciprocated by promising unprecedented "openness in government" and a new era of transparency. He has fallen far short of the promise. This administration has prosecuted more whistle-blowers for leaks and gone after more journalists than any of its predecessors. The issue was crystallized anew recently when the Supreme Court refused to hear an appeal from New York Times reporter James Risen, who has been ordered to testify in the trial of Jeffrey Sterling, a former Central Intelligence Agency official. Sterling is charged with giving Risen classified information about an attempt to sabotage Iran's nuclear program. The Justice Department has relentlessly pursued Risen, and he could face jail time for failing to comply with the subpoena. Similar claims about protecting national security are being made about Sterling, who proclaims his innocence. A federal judge dismissed the proceedings against Risen, but the Obama administration successfully appealed the decision. On the federal level, much depends on an administration's attitude. As it stands, in the US, the news media has considerable protections when it comes to censorship or libel, but they don't apply to news gathering. Attorney General Eric Holder has vowed in private meetings and some public pronouncements to change this approach. With the decision by the Supreme Court, the Risen case offers the opportunity to do so.
benton.org/node/185814 | Bloomberg
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NSA’S COMPLEXITY DEFENSE
[SOURCE: Washington Post, AUTHOR: Andrea Peterson]
The National Security Agency recently used a novel argument for not holding onto information it collects about users online activity: it's too complex. The NSA argued that holding onto the data would be too burdensome. "A requirement to preserve all data acquired under section 702 presents significant operational problems, only one of which is that the NSA may have to shut down all systems and databases that contain Section 702 information," wrote NSA Deputy Director Richard Ledgett in a court filing submitted to the court. The complexity of the NSA systems meant preservation efforts might not work, he argued, but would have "an immediate, specific, and harmful impact on the national security of the United States." Part of this complexity, Ledgett said, stems from privacy restrictions placed on the programs by the Foreign Intelligence Surveillance Court. The government's explanation raises more concerns, said Cindy Cohn, the Electronic Frontier Foundation's legal director. "To me, it demonstrates that once the government has custody of this information even they can't keep track of it anymore even for purposes of what they don't want to destroy," she said. "With the huge amounts of data that they're gathering it's not surprising to me that it's difficult to keep track -- that's why I think it's so dangerous for them to be collecting all this data en masse," Cohn added.
benton.org/node/185854 | Washington Post
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WHY WE NEED TO STOP FREAKING OUT ABOUT THE NSA AND GET ON WITH BUSINESS
[SOURCE: GigaOm, AUTHOR: Barb Darrow]
A Q&A with Lance Crosby, the executive charged with IBM/SoftLayer’s cloud push. Maybe the National Security Agency did us a favor. Sure, news of its insatiable data snooping got nearly everyone’s knickers in a twist, but seriously, isn’t this a valuable teaching moment? Crosby certainly thinks so. He acknowledged that customers outside the US often ask about securing their data from government eyes. His answer? Don’t focus on who’s snooping, protect your data from anyone. “My response is protect your data against any third party -- whether it’s the NSA, other governments, hackers, terrorists, whatever…” he noted. “I say let’s stop worrying about the NSA and start talking about encryption and VPNs and all the ways you can protect yourself. Yes, the NSA got caught, but they’re not the first and won’t be the last.”
benton.org/node/185792 | GigaOm
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STORIES FROM ABROAD
THE EU REPORTS THAT IT’S FALLING BEHIND IN BROADBAND SERVICE AND DIGITAL SKILLS
[SOURCE: American Enterprise Institute, AUTHOR: Roslyn Layton]
[Commentary] The European Union just released the 2014 Digital Scoreboard, which tracks member nations’ progress towards their digital goals and a digital single market, something the US already enjoys. Though some objectives have been achieved, the EU is still far from meeting its goals in two key areas: closing the digital skills gap and deploying next generation networks. The EU reports that 90% of jobs require at least some digital skills but 39% of the workforce lacks those skills. Indeed, 100 million Europeans have never used the Internet, according to the report. That’s about 20% of the region’s population.
[Layton studies Internet economics at the Center for Communication, Media, and Information Technologies (CMI) at Aalborg University in Copenhagen]
benton.org/node/185778 | American Enterprise Institute
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