September 2014

Thinking Mobile: 2010 v 2013: Wireless is Different

CTIA released its latest infographic that takes a look at what the mobile ecosystem looked like in 2010 and compared it to 2013. It was only three years, but thanks to the Federal Communications Commission's decision for a light regulatory touch throughout the mobile ecosystem, Americans enjoy the world's best wireless industry.

September 30, 2014 (FTC and Net Neutrality)

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BENTON'S COMMUNICATIONS-RELATED HEADLINES for TUESDAY, SEPTEMBER 30, 2014

FCC meeting today http://benton.org/calendar/2014-09-30/


INTERNET
   The FTC doubles down on its net neutrality ambitions
   Network Neutrality Gets New ‘Title’
   Remarks of Lawrence Strickling Assistant Secretary of Commerce for Communications and Information The Media Institute - speech

TELECOM
   FCC Announces Further Details Regarding the Rural Broadband Experiments - public notice

WIRELESS/SPECTRUM
   Here's how to expand wireless spectrum - Jessica Rosenworcel, Marty Cooper op-ed
   Chairman Wheeler Wants FCC to Study 5G and Millimeter Wave [links to web]
   AT&T’s congestion magically disappears when it’s signing up new customers

OWNERSHIP
   Comcast/TWC merger vote delayed after NY regulators find “deficiencies”
   FCC Asks Media Firms for Details of Comcast Contracts

TELEVISION
   The FCC could end its support for sports TV blackouts [links to web]
   FCC Proposes Defining 'Linear' OVDs as MVPDs
   The greed of it all - TVfreedom op-ed [links to web]
   Resistance to Dodgers Channel Sends Message on Pricing [links to web]

EDUCATION
   FCC Chairman Tom Wheeler Remarks at the Second Ed Tech Summit - speech

CONTENT
   The Two Questions Everyone Should Ask When Surfing the Web - op-ed [links to web]
   Why Rumors Outrace the Truth Online [links to web]

EMERGENCY COMMUNICATIONS
   FCC Should Ensure That Help Will Arrive For 911 Calls - Public Knowledge press release [links to web]

GOVERNMENT & COMMUNICATIONS
   Reagan order ‘primary source’ for NSA spying

STORIES FROM ABROAD
   Nominee for European Digital Job Explains Positions in Hearing [links to web]
   EU Believes Apple Tax Deals Broke Rules [links to web]

MORE ONLINE
   JD Power: Wireline Service Satisfaction Rises [links to web]

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INTERNET

THE FTC AND NETWORK NEUTRALITY
[SOURCE: Washington Post, AUTHOR: Brian Fung]
Federal Trade Commission member Maureen Ohlhausen is warning that consumers will be hurt if the Federal Communications Commission pushes for strong network neutrality protections under Title II of the Communications Act. It's the second time in as many weeks that the FTC has complained about the possible loss of authority under the FCC's net neutrality rules. Commissioner Maureen Ohlhausen said that despite the "possibility" that Internet service providers would abuse their ability to control access to consumers, reclassifying broadband under Title II would put ISPs beyond the legal reach of the FTC, one of the nation's technology regulators. "If an entity is a common carrier providing common carrier services, we can't bring actions against them," said Commissioner Ohlhausen. "If broadband service is reclassified as a common carrier service under Title II, I think that would seriously call into question the ability of the FTC to bring those kinds of actions. So my concern is really not so much for the FTC, but for the loss to consumers -- that they would lose out from having the FTC's active oversight." Title II would give the FCC the latitude to regulate broadband providers in the same manner that it regulates telephone companies -- a step that many net neutrality advocates say is necessary for protecting a level playing field for startups and small businesses online. Opponents say Title II can't accomplish what advocates want it to, and they've proposed lighter-touch regulations in response.
benton.org/headlines/ftc-doubles-down-its-net-neutrality-ambitions | Washington Post
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MMTC AND NETWORK NEUTRALITY
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
The Minority Media & Telecommunications Council (MMTC) is taking a somewhat novel approach in its attempt to help sway the network neutrality debate and keep the open Internet rules in business. MMTC is using a civil rights model to combat what they see as Web discrimination. The model adds yet a different option to the commission’s ongoing net neutrality debate, which has been mainly between considerations of Title I and Title II of the Communications Act. The MMTC prefers inserting a new title into the mix -- Title VII, a part of the Civil Rights Act -- and calls out the Equal Opportunity Commission to help get the FCC’s new proposed rules enforced.
benton.org/headlines/network-neutrality-gets-new-title | Broadcasting&Cable
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INTERNET GOVERNANCE
[SOURCE: National Telecommunications and Information Administration, AUTHOR: Lawrence Strickling]
Looking ahead, debate over the future of Internet governance will once again be in the spotlight when the International Telecommunication Union meets in October for the Plenipotentiary Conference in Busan, Korea. We expect some countries may attempt to change the ITU’s mandate to give governments greater control over the Internet. I would like to make three points about these efforts. First, the U.S. delegation, headed by Ambassador Danny Sepulveda, will strongly oppose such efforts. And we hope and expect that the growing acceptance of the multistakeholder approach by nations, especially those in the developing world, will offer a strong rebuttal to proposals to give governments control over the Internet. Second, there is more at stake here than just growth and innovation. Free expression is also at risk. Nations that favor government control of the Internet tend to be countries that censor or control Internet content. For example, a Freedom House study of the voting by nations at the World Conference on International Telecommunications (WCIT) in Dubai in 2012 concluded that two-thirds of states voting for more governmental control of the Internet censor political, social or religious content within their borders. Third, some that have not studied the history of this issue have argued that these efforts by authoritarian governments to seek greater governmental control of the Internet were encouraged by our announcement in the spring to transition the IANA functions. That simply is not true.
benton.org/headlines/remarks-lawrence-strickling-assistant-secretary-commerce-communications-and-information | National Telecommunications and Information Administration
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TELECOM

FCC ANNOUNCES FURTHER DETAILS REGARDING THE RURAL BROADBAND EXPERIMENTS
[SOURCE: Federal Communications Commission, AUTHOR: Public Notice]
The Federal Communications Commission’s Wireline Competition Bureau releases the application form for the rural broadband experiments, FCC Form 5610, and provides additional information to assist potential applicants in completing the application form. The Bureau also announces that a brief delay in the timing of the applications for rural broadband experiments in order to complete testing of the electronic submission system.
benton.org/headlines/fcc-announces-further-details-regarding-rural-broadband-experiments | Federal Communications Commission
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WIRELESS/SPECTRUM

HERE’S HOW TO EXPAND WIRELESS SPECTRUM
[SOURCE: San Jose Mercury News, AUTHOR: Jessica Rosenworcel, Marty Cooper]
[Commentary] We believe it is time for Washington to issue a challenge. It is time for a contest to spur innovation to improve spectrum efficiency. Think of it as Race to the Top, Spectrum Edition. Here's how it would work. The first person who finds a way to make spectrum use 50 to 100 times more efficient over the next decade would win. The reward could be spectrum itself -- say 10 megahertz suitable for mobile broadband. That might sound like a small goal and a modest reward, but the impact could be really big. If the winner can find a way to use spectrum 50 times more efficiently, 10 megahertz of spectrum could do the work of 500 megahertz using today's technology. The technology developed by the winner, and even the near misses, would help manage the growing demand for our airwaves and further stimulate the wireless economy. Moreover, the reward would be a good deal. Ten megahertz of spectrum may not sound like much, but it could be sold or leased -- and spectrum auctions at the FCC bring in billions. Even a small slice of that revenue represents a pretty sweet incentive. The contest could be just the start. We could take what we learn from it to help develop new measures of spectrum efficiency. This would be a different approach to thinking about the future of our airwaves. Revolutionary opportunities lie ahead -- if we find new ways to seize them.
[Rosenworcel is a Federal Communications Commissioner. Cooper is a pioneer in the wireless industry and is considered the father of the cellphone.]
benton.org/headlines/heres-how-expand-wireless-spectrum | San Jose Mercury News
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AT&T CONGESTION
[SOURCE: ars technica, AUTHOR: Jon Brodkin]
AT&T began offering “double the data for the same price” to new customers and existing customers who sign new contracts, apparently forgetting that its network is so congested that speeds must be throttled when people use too much data. Like other carriers, AT&T slows the speeds of certain users when the network is congested. Such network management is a necessary evil that can benefit the majority of customers when used to ensure that everyone can connect to the network. But as Federal Communications Commission Chairman Tom Wheeler has argued, the carriers’ selective enforcement of throttling shows that it can also be used to boost revenue by pushing subscribers onto pricier plans.
benton.org/headlines/atts-congestion-magically-disappears-when-its-signing-new-customers | Ars Technica
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OWNERSHIP

COMCAST/TWC REVIEW DELAY
[SOURCE: ars technica, AUTHOR: Jon Brodkin]
The New York Public Service Commission has delayed its vote on the Comcast/Time Warner Cable merger from October 2 to November 13. The delay comes as the commission reviews recommendations from the state Division of Consumer Protection's Utility Intervention Unit (UIU). In a filing on August 25, the UIU described "deficiencies associated with the Companies’ current substandard customer service" and said the merger should not be approved unless certain conditions are imposed. The UIU also said there are "deficiencies" in the companies' petition with the state, "specifically, in the areas of improving the Companies’ service to its New York customers, making universal broadband more affordable, increasing broadband speed, and investing in infrastructure, including ways to remedy those deficiencies." Conditions proposed to remedy the problems include expanding eligibility for Comcast's low-cost Internet service for poor people, preservation of Time Warner Cable's $14.99-per-month standalone broadband service for all customers regardless of income status, expansion of broadband in rural areas, implementation of a service quality measure, preservation of customer service jobs in New York, and "the creation of two additional voting seats on the Board of Directors of the merged company to represent New York consumer interests."
benton.org/headlines/comcasttwc-merger-vote-delayed-after-ny-regulators-find-deficiencies | Ars Technica
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COMCAST MERGER REVIEW
[SOURCE: Wall Street Journal, AUTHOR: Amol Sharma, Gautham Nagesh]
The Federal Communications Commission is pushing for media companies to submit details of their programming agreements with Comcast, as it reviews the cable giant's proposed $45 billion merger with Time Warner Cable. The agency believes the documents -- which cover details of the carriage arrangements between Comcast and TV channel owners -- contain information that would be relevant in its review, according to a person familiar with the matter. Media companies, though, are pushing back. Though many of them would like to see the FCC put in place strict conditions on a deal to restrain Comcast's market power, they don't want to reveal details of their contracts with the cable giant, fearing that would give competitors an advantage. Officials from several media companies -- including CBS, 21st Century Fox, Walt Disney, Discovery Communications, Time Warner, Viacom -- met with FCC staff earlier this month to voice their "grave concerns" about releasing "certain highly confidential materials," according to a regulatory filing.
benton.org/headlines/fcc-asks-media-firms-details-comcast-contracts | Wall Street Journal
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TELEVISION

FCC OVD PROPOSAL
[SOURCE: Multichannel News, AUTHOR: John Eggerton]
Apparently, the Federal Communications Commission is working on a proposal that would define an online video provider (OVD) that delivers a linear stream of programming as an multichannel video programming distributor (MVPD), similar to a cable or satellite operator. That means the OVD would have access to content through the FCC's program access rules, but also have to negotiate retransmission-consent with broadcasters. The idea is that over-the top providers would have an FCC-enforced access to vertically integrated programming. The proposal reportedly asks what other MVPD rights and responsibilities beyond access and retransmission carriage should extend to over-the-top providers.
benton.org/headlines/fcc-proposes-defining-linear-ovds-mvpds | Multichannel News
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EDUCATION

E-RATE REFORM
[SOURCE: Federal Communications Commission, AUTHOR: FCC Chairman Tom Wheeler]
I would like to visit about the next steps in the evolution of the E-rate program. In particular I want to talk about two related issues that remain squarely before the Commission as we consider next steps in the E-rate modernization process: 1) closing the Rural Fiber Gap for schools and libraries, and 2) tackling the affordability challenge.
benton.org/headlines/fcc-chairman-tom-wheeler-remarks-second-ed-tech-summit | Federal Communications Commission
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GOVERNMENT & COMMUNICATIONS
   Reagan order ‘primary source’ for NSA spying

EXECUTIVE ORDER 12333
[SOURCE: The Hill, AUTHOR: Julian Hattem]
An executive order signed in 1981 by then-President Ronald Reagan is the “primary source” of authority for the National Security Agency’s foreign spying, according to newly released internal documents. Papers obtained by the American Civil Liberties Union in response to a Freedom of Information Act lawsuit detail the central role that the order plays in authorizing the NSA’s current operations. The “majority” of the spy agency’s intelligence collection is performed “solely pursuant” to the order signed by Reagan and then amended by former President George W. Bush. The order, known as Executive Order 12333, allows the NSA to collect Internet communications about foreigners, including their email messages and online chats.
benton.org/headlines/reagan-order-primary-source-nsa-spying | Hill, The
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Reagan order ‘primary source’ for NSA spying

An executive order signed in 1981 by then-President Ronald Reagan is the “primary source” of authority for the National Security Agency’s foreign spying, according to newly released internal documents.

Papers obtained by the American Civil Liberties Union in response to a Freedom of Information Act lawsuit detail the central role that the order plays in authorizing the NSA’s current operations. The “majority” of the spy agency’s intelligence collection is performed “solely pursuant” to the order signed by Reagan and then amended by former President George W. Bush. The order, known as Executive Order 12333, allows the NSA to collect Internet communications about foreigners, including their email messages and online chats.

FCC Asks Media Firms for Details of Comcast Contracts

The Federal Communications Commission is pushing for media companies to submit details of their programming agreements with Comcast, as it reviews the cable giant's proposed $45 billion merger with Time Warner Cable.

The agency believes the documents -- which cover details of the carriage arrangements between Comcast and TV channel owners -- contain information that would be relevant in its review, according to a person familiar with the matter. Media companies, though, are pushing back. Though many of them would like to see the FCC put in place strict conditions on a deal to restrain Comcast's market power, they don't want to reveal details of their contracts with the cable giant, fearing that would give competitors an advantage. Officials from several media companies -- including CBS, 21st Century Fox, Walt Disney, Discovery Communications, Time Warner, Viacom -- met with FCC staff earlier this month to voice their "grave concerns" about releasing "certain highly confidential materials," according to a regulatory filing.

Resistance to Dodgers Channel Sends Message on Pricing

Most of the Los Angeles Dodgers’ fans could not catch any of the regular season excitement on television. That's because SportsNet LA, the new Dodgers-owned channel that carried nearly all of the team's games, was available in less than one-third of the Los Angeles market.

The high price tag to carry Sports Net LA puts it among the most expensive regional sports networks in the country at a time when distributors are trying to lower content costs. Now, pay-TV distributors are hoping the Dodgers fiasco will be a turning point in a wider industry debate over sports programming costs. Cable and satellite-TV providers blame sports fees, which have been rising for two decades, for causing bills to skyrocket and giving consumers a reason to "cut the cord." While national channels like Walt Disney's ESPN play a big role, regional networks with a narrow focus—in some cases on individual teams -- have been proliferating and charging steep prices for carriage, critics say. Sports accounts for about 20% of all programming expenses for distributors, according to research firm SNL Kagan.

FCC Should Ensure That Help Will Arrive For 911 Calls

The public should not have to worry about carriers complying with rules that impact the effectiveness of emergency services, nor should the public be responsible for taking on the cost of individually integrating the necessary technology for reliable emergency services. The fact that the industry has failed to collectively address this despite widespread reports of failed location accuracy demonstrates the need for Federal Communications Commission intervention.

Public Knowledge believes in embracing new technologies, but it should not be done the expense of the public or their lives. Today’s communications infrastructure can and should ensure that everyone has access to networks and services that adequately serve everyone, regardless of race, sex, age, location, technology adoption, income level, or disability. Public Knowledge supports the FCC’s proposed rules as an important step toward ensuring first responders can consistently reach communities on time.

Nominee for European Digital Job Explains Positions in Hearing

Telecommunications investment. Data protection reforms. Cellphone roaming charges. Günther Oettinger, the nominee to be the European Union’s next digital economy commissioner, would have a lot on his plate.

The tasks that would await him were outlined in a three-hour hearing when members of the European Parliament peppered Oettinger, a 61-year-old German politician, with questions about how he would manage the diverse challenges that he would inherit by taking up the position on Nov. 1. Throughout the lengthy question-and-answer session, Oettinger emphasized that he wanted to create greater connections across the 28-member bloc, and that more investment was needed by local companies if Europe was to keep pace with other regions like the United States and Asia.

EU Believes Apple Tax Deals Broke Rules

European Union regulators laid out for the first time reasons why they believe tax deals granted to Apple in Ireland constituted illegal state support for the company -- the next stage of an investigation which could result in the companies paying huge sums in extra taxes to the governments concerned.

In a letter to the Irish government, the European Commission, the 28-member bloc's central antitrust authority, said it had reached the "preliminary view" that tax deals struck in Ireland in 1991 and 2007 in favor of Apple constituted state aid. "Through those rulings the Irish authorities confer an advantage on Apple" that is "granted in a selective manner," the commission wrote. At issue are the tax rulings, or so-called comfort letters, sent by governments to multinationals to give clarity on how a specific tax will be calculated. These would be illegal if they gave selective advantages to some companies.

FCC Chairman Tom Wheeler Remarks at the Second Ed Tech Summit

I would like to visit about the next steps in the evolution of the E-rate program. In particular I want to talk about two related issues that remain squarely before the Commission as we consider next steps in the E-rate modernization process: 1) closing the Rural Fiber Gap for schools and libraries, and 2) tackling the affordability challenge.

Remarks of Lawrence Strickling Assistant Secretary of Commerce for Communications and Information The Media Institute

Looking ahead, debate over the future of Internet governance will once again be in the spotlight when the International Telecommunication Union meets in October for the Plenipotentiary Conference in Busan, Korea. We expect some countries may attempt to change the ITU’s mandate to give governments greater control over the Internet. I would like to make three points about these efforts.

  • First, the U.S. delegation, headed by Ambassador Danny Sepulveda, will strongly oppose such efforts. And we hope and expect that the growing acceptance of the multistakeholder approach by nations, especially those in the developing world, will offer a strong rebuttal to proposals to give governments control over the Internet.
  • Second, there is more at stake here than just growth and innovation. Free expression is also at risk. Nations that favor government control of the Internet tend to be countries that censor or control Internet content. For example, a Freedom House study of the voting by nations at the World Conference on International Telecommunications (WCIT) in Dubai in 2012 concluded that two-thirds of states voting for more governmental control of the Internet censor political, social or religious content within their borders.
  • Third, some that have not studied the history of this issue have argued that these efforts by authoritarian governments to seek greater governmental control of the Internet were encouraged by our announcement in the spring to transition the IANA functions. That simply is not true.