June 2014

Tech titans tell Senate to go big on NSA overhaul

Facebook, Google, Microsoft and other top technology companies are warning the Senate not to follow the House’s lead with a compromised plan to reform the National Security Agency.

A coalition of nine major companies is planning to publish an open letter calling for the Senate to limit the NSA’s powers, the one-year anniversary of Edward Snowden’s first revelations about the spy agency. The same day, a top trade group head will warn the Senate Intelligence Committee that the spy agency’s activities could lead to “seriously damaging long-term implications” for the global economy. Together, the efforts amount to a concerted push to pressure the Senate to rein in surveillance, after the House passed a bill that many reformers thought was too weak.

“Over the last year many of our companies have taken important steps, including further strengthening the security of our services and taking action to increase transparency,” the nine-member Reform Government Surveillance coalition wrote in the letter, which will be published in The Washington Post, New York Times and Politico. “But the government needs to do more.”

The tech coalition is made up of Google, Facebook, AOL, Microsoft, Apple, Twitter, Yahoo, Dropbox and LinkedIn.The trade group includes major companies like Dell, Sony, Intel and eBay, in addition to several of the companies in the Reform Government Surveillance group.

Sprint, T-Mobile Move Closer to a $32 Billion Deal

Sprint and T-Mobile US have agreed on the broad terms of a merger worth around $32 billion and are working toward a final agreement, people familiar with the matter said.

Under the framework, Sprint would acquire T-Mobile for around $40 a share in a deal that could happen early this summer, the people said.

A deal could still fall through, but if completed would combine the country's third and fourth largest wireless operators, creating a bigger competitor to market leaders Verizon Communications and AT&T but leaving consumers with fewer choices for service. A deal would face strong opposition from regulators and a lengthy antitrust review, and Sprint would pay T-Mobile more than $1 billion in cash and other assets if it is shot down, the people said.

Labor activists to protest T-Mobile shareholder meeting

Labor activists are accusing T-Mobile of labor violations ahead of the company's annual shareholder meeting.

They say the telecommunications company is not treating US workers fairly by discouraging them from unionizing.

"Worldwide, and especially in Germany where T-Mobile’s parent company Deutsche Telekom is based, T-Mobile workers benefit from better protections than their American counterparts because of an employee union," the activists wrote in a petition to the company.

At the shareholder meeting, the Marco Consulting Group will call on T-Mobile's board of directors to conduct a human rights risk assessment. Nearly 28,000 protesters have signed the petition demanding that the company stop violating the rights of US workers.

Small Record Labels Ask Regulators to Intervene in YouTube Dispute

Independent music groups, angry with YouTube’s demands over licensing terms, have asked government regulators in Europe and the United States to intervene on their behalf.

Trade groups representing thousands of independent record labels and musicians said that they had appealed to the European Commission for “formal regulatory action.” They accuse YouTube, a division of Google, of offering unfair contracts for a planned subscription music service, and of threatening to block the labels’ content if they do not sign.

“YouTube are shooting themselves in the foot with their attempt to strong-arm independent labels into signing up to such low rates,” the singer-songwriter Billy Bragg said. “They’re in danger of launching a streaming service that lacks the innovative and cutting-edge sounds that independent artists bring.”

Texas-Based Telecom Provider To Pay $875,000 To Resolve Rural Call Completion Investigation

Matrix Telecom, a telecommunications company headquartered in Irving, Texas, will pay $875,000 to resolve an investigation by the Federal Communications Commission’s Enforcement Bureau into whether the company failed to complete long-distance calls to rural areas on a just, reasonable, and non-discriminatory basis.

Matrix will also implement a three-year plan to ensure compliance with FCC requirements designed to combat the serious problem of long-distance calls failing to complete in rural areas.

“Our nation’s telecommunications laws are based on the fundamental promise that all Americans should be able to call each other wherever they may be located,” said Travis LeBlanc, Acting Chief of the Enforcement Bureau. “Rural America should not be treated differently, and we will continue to enforce the law to fulfill this promise.”

In its consent decree with the Enforcement Bureau, Matrix has agreed to:

  • Make a payment of $875,000 to the US Treasury;
  • Develop and implement a comprehensive compliance plan designed, among other things, to ensure future compliance with applicable laws;
  • Designate a senior corporate manager to serve as a compliance officer focusing on rural call completion issues;
  • Cooperate with the FCC and rural local exchange carriers to establish a testing program to evaluate rural call completion performance whenever complaints or data indicate problems;
  • Notify intermediate providers (companies that Matrix uses to deliver calls) that may be causing call completion problems and analyze and resolve such problems as soon as practicable;
  • Cease using intermediate providers that fail to improve their performance;
  • Report to the FCC any noncompliance with the consent decree within 15 days; and
  • File an initial compliance report in 90 days and annual reports for three years.

Shifting Blame

Breaking reports have suggested that Netflix is engaging in a PR stunt in an attempt to shift blame to ISPs for the buffering that some of its customers may be experiencing.

According to one journalist’s tweet, Netflix is displaying a message on the screen for users who experience buffering which says: “The Verizon network is crowded right now.”

This claim is not only inaccurate, it is deliberately misleading.

The source of the problem is almost certainly NOT congestion in Verizon’s network. Instead, the problem is most likely congestion on the connection that Netflix has chosen to use to reach Verizon’s network.

Of course, Netflix is solely responsible for choosing how their traffic is routed into any ISP’s network. Some reporters seem to have bought into Netflix’s claims without question, and some have conflated this dispute with net neutrality.

For those looking for more careful analysis, however, there is plenty of good material out there by technical experts (such as industry analyst Dan Rayburn) that set the record straight.

House Members Seek FCC Update on Reforms

The chairs of a couple of Federal Communications Commission oversight subcommittees in the House have asked the FCC for an "update" on its current workload and "backlog of issues" currently pending.

That came in a letter to FCC Chairman Tom Wheeler from Communications Subcommittee Chairman Greg Walden (R-OR) and Oversight and Investigations Subcommittee Tim Murphy (R-PA).

Rep Walden has been a big supporter of FCC process reform, including helping achieve House passage of the FCC Process Reform Act, which passed the House in March.

“In order to better understand the scope of the commission’s challenge, we respectfully request that the commission update the committee on current workload, the magnitude of the current backlog of issues pending before the commission and its bureaus, and efforts to manage current and backlogged work," they wrote. The Representatives said the report included reforms that, if instituted, would improve "transparency, efficiency and responsiveness.”

Preserving Public Safety and Network Reliability in the IP Transition

The US Senate Committee on Commerce, Science, and Transportation’s Subcommittee on Communications, Technology, and the Internet will hold a hearing on June 5 titled “.”

The Subcommittee will examine the public safety implications of the ongoing evolution of the nation’s communications networks and how best to preserve consumer access to those networks and vital life-saving information during and after emergency situations. The hearing will be webcast live via the Senate Commerce Committee website.

Congressional calendar winding down on STELA

[Commentary] The clock is rapidly expiring on the 113th Congress. While in the rest of the world, the beginning of June signals a nearing to the midpoint of the year, in Congress during an even-numbered election year, when the calendar flips to June, it signals a mere 10 workweeks until the end of the federal government's fiscal year.

Whether Minority Leader Nancy Pelosi (D-CA) or Speaker John Boehner (R-OH) runs the House, this calendar remains as the July Fourth and August recesses allow members to stay connected with their constituents back home.

Everyone who has been in Washington for any length of time knows this time table. It focuses the minds of lawmakers on what can be accomplished and what cannot as the Congress draws near a close. One prime example where the clock is in danger of running out on a law is the re-authorization of the Satellite Television Extension and Localism Act (STELA).

A clean bill, without controversial amendments, would very likely pass before Congress adjourns, but amendments being considered by retiring Senate Commerce, Science and Transportation Chairman Jay Rockefeller (D-WV) could serve as poison pills to the whole process. At the urging of pay-television advocates, the Democratic majority on the committee would use the expiring law to create a new set of regulatory regimes that cripple the local broadcaster's ability to survive.

STELA is the law which, at least partially, governs the relationship between local broadcasters and pay-television providers. Unfortunately, Sen Rockefeller's committee is considering amendments to STELA which benefit pay-television providers to the detriment of those who produce local content.

Even on Capitol Hill, it should be clear that the federal government compelling a private business to provide its services to another private business without a contractually agreed-upon payment price is wrong and should be rejected. Yet that is exactly what the pay-television industry hopes to put into reauthorization language dooming the bill.

[Manning is is vice president of public policy and communications for Americans for Limited Government]

Unfinished business on government surveillance reform

Since news reports surfaced about US government surveillance practices, a lot has changed. And there even have been some initial positive reforms.

We all want to live in a safe and secure world and governments --including the US government -- play a vital role in helping to protect our communities. But the reality is clear. The US Government needs to address important unfinished business to reduce the technology trust deficit it has created. There are five things the US government still needs to do:

  1. Recognize that US search warrants end at US borders
  2. End bulk collection
  3. Reform the FISA Court
  4. Commit not to hack data centers or cables
  5. Continue to increase transparency

While the focus today is on the actions the US government needs to take, it is clear that many of the issues and solutions to them are international in nature. We need an international effort to restore the trust of Internet users and strike the right balance between privacy and security. That’s why we remain committed to the creation of new international legal frameworks. Around the world, governments are increasingly recognizing the need for such action, and now it’s time for people to roll up their sleeves and pursue them.

[Smith is General Counsel & Executive Vice President, Legal & Corporate Affairs, Microsoft]