September 2014

G7 broadband dynamics: What have we learned?

[Commentary] The G7 is an interesting group to study because these nations are roughly comparable in terms of industrial, economic, and social development, and also because they have the most intense Internet use among large nations. A policy experiment has been conducted over the last ten years that provides us with insight into the best way to construct a tech policy regulatory system, but only if we’re willing to study the data carefully and diligently.

September 10, 2014 (Happy Internet Slowdown Day)

BENTON'S COMMUNICATIONS-RELATED HEADLINES for WEDNESDAY, SEPTEMBER 10, 2014 (Happy Birthday, Cassidy)

Data for Social Justice: The Impact of Data on Underserved Communities; Regulating the evolving broadband ecosystem; and Happy Internet Slowdown Day (see below).


AGENDA
   How the ‘Internet Slowdown’ is supposed to work
   FCC Announces Tentative Agenda For September 2014 Open Meeting - press release
    See also: Sack the NFL's blackout rule - Tom Wheeler op-ed
   FCC Circulating Quartet of Incentive Auction Items
   FCC Announce Panelist Information for Open Internet Roundtables - public notice [links to web]

INTERNET/BROADBAND
   The Question of Preemption: The FCC Considers Lifting Municipal Broadband Restrictions - analysis
   Activists Seek FCC Field Hearings on Network Neutrality [links to web]
   FCC Announce Panelist Information for Open Internet Roundtables - public notice [links to web]
   Tech companies warn Web rules would be ‘extremely disruptive’
   Network neutrality and mobile broadband innovation - AEI op-ed [links to web]
   Get ready: The Senate is about to hold a hearing on net neutrality o Sept 17 [links to web]
   Broadband policy history reflects unusual bipartisanship - Stuart Brotman op-ed [links to web]
   AT&T and Verizon say 10Mbps is too fast for “broadband,” 4Mbps is enough
   A Brief History of Competition Policies and Networks - FCC press release [links to web]
   AT&T and Verizon finally giving customers decent Netflix quality

SPECTRUM/WIRELESS
   Prepared Remarks of FCC Chairman Tom Wheeler, 2014 CTIA Show - speech
   Sprint adds 15 new regional carriers to its LTE rural roaming program [links to web]
   The History of the Mobile Phone [links to web]

TELEVISION/VIDEO
   Sack the NFL's blackout rule - Tom Wheeler op-ed
   Local Choice: A Good Idea, But It’s All about the Details - Public Knowledge analysis [links to web]
   Kids Are Watching the Weirdest Stuff on TV -- and It's Not Always From Kids' Networks [links to web]
   AT&T RFD-TV Deal Aims to Appease Regulators [links to web]
   Court Rejects NAB Challenge to Sharing Advisory [links to web]

OWNERSHIP
   Any curbs on Comcast alliance are tough to enforce
   Microsoft Near Deal to Buy Minecraft Maker Mojang [links to web]
   Court Rejects NAB Challenge to Sharing Advisory [links to web]

CONTENT
   U2, Apple and the Deal Behind Getting ‘Songs of Innocence’ Free of Charge
   New York’s hottest new real estate exists only on the Internet [links to web]
   What happens when your grandparents can talk to your grandchildren [links to web]
   More than E-book vs. Print: The Concept of ‘Media Mentors’ - NAF analysis [links to web]
   When news moves faster than humans can travel, it changes everything - op-ed [links to web]

ADVERTISING
   Comcast Wi-Fi serving self-promotional ads via JavaScript injection [links to web]

TELECOM
   Spreading the Good Word about Lifeline - Commissioner Clyburn press release
   Alaska: Lessons Learned - FCC Commissioner Michael O'Rielly press release [links to web]

PRIVACY/SECURITY
   Pressure mounts on Senate for NSA vote [links to web]
   Meet the shadowy tech brokers that deliver your data to the NSA [links to web]
   WH Official: Cyber Coverage Will Be a Basic Insurance Policy by 2020 [links to web]
   What to Take Away from the FCC Settlement with Verizon over CPNI - Public Knowledge analysis [links to web]
   Five Guiding Principles for the Development of National Cyber Strategies - analysis [links to web]
   At Work: Remote Data Wipes of Workers' Personal Devices Are Rising [links to web]

GOVERNMENT & COMMUNICATIONS
   The Future of FCC.GOV - press release

POLICYMAKERS
   President must give CTO the necessary tools to succeed - SJ Mercury editorial
   FCC International Bureau Names Nese Guendelsberger Deputy Bureau Chief - press release [links to web]
   FCC Commissioner O'Rielly Announces the Departure of Courtney Reinhard - press release [links to web]
   FCC Announces the Opening of a Docket for Public Comments on Mobile Device Theft Prevention and Changes in the Membership of the Mobile Device Theft Prevention Working Group [links to web]
   Former FCC Commissioner McDowell Joins Wiley Rein [links to web]

COMPANY NEWS
   Jeffrey D. Dunn Named Chief of Sesame Workshop [links to web]
   Univision, an early Comcast critic, signs long-term sports deal [links to web]
   AT&T RFD-TV Deal Aims to Appease Regulators [links to web]
   Digital Paywall Companies Piano Media and Press Plus to Merge [links to web]

STORIES FROM ABROAD
   The State Department’s plan to spark a global SOPA-style uprising around Internet governance [links to web]
   Continued Evolution of the Internet Requires Open and Inclusive Collaboration - ITU press release [links to web]
   The elephant in the room – the Internet and its governance - AEI op-ed [links to web]
   Privacy group takes Five Eyes spy pact case to Europe’s top court [links to web]
   Google looks for public input on right to be forgotten [links to web]

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AGENDA

INTERNET SLOWDOWN
[SOURCE: Washington Post, AUTHOR: Nancy Scola]
On Sept 10, forces aligned in favor of stronger net neutrality rules will rally under the banner of Internet Slowdown Day, the latest push to funnel the public's attention to the Federal Communication Commission's on-going rulemaking on open Internet principles and practices. First things first. Slowdown Day will not feature any actual slowing down of the Internet. The reason it won't? The same reason why this is a fascinating moment in the history of Internet activism. Companies participating in the protest, like Vimeo, Etsy and reddit, have become the digital infrastructure of the Internet age. Slowing down their services is likely to anger their audiences (not to mention, in some cases, their shareholders). In other words, they've become essential -- Too Big to Slow? -- but that also gives them enormous power. They have the ability to draw millions upon millions of eyeballs to the spinning loading icon that will be featured on their sites. A spinning logo is one way that Web sites and Web users will be participating. Another is changing one's avatar, on Twitter or Facebook or what have you, to the icon. The hope is that the action will spread like a contagion, if one given a little push.
benton.org/headlines/how-internet-slowdown-supposed-work | Washington Post
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FCC ANNOUNCES TENTATIVE AGENDA FOR SEPTEMBER OPEN MEETING
[SOURCE: Federal Communications Commission, AUTHOR: Press release]
Federal Communications Commission Chairman Tom Wheeler announced that the following items will tentatively be on the agenda for the next open meeting scheduled for Tuesday, September 30, 2014:
Sports Blackout Rules: The Commission will consider a Report and Order that would eliminate the Commission’s sports blackout rules, which can prevent consumers from watching their teams’ games on local television.
Comprehensive Review of Licensing and Operating Rules for Satellite Services: The Commission will consider a Further Notice of Proposed Rulemaking to streamline and update Part 25 of the Commission’s rules, which governs licensing and operation of space stations and earth stations for the provision of satellite communication services. These proposals will amend, clarify or eliminate numerous rule provisions and reduce regulatory burdens.
Part 15 NPRM: The Commission will consider a Notice of Proposed Rulemaking to revise rules for unlicensed operations in the TV bands and new 600 MHz Band, including fixed and personal/portable white space devices and unlicensed microphones. The proposed changes and new rules are intended to allow more robust and spectrally efficient unlicensed operations without increasing the risk of harmful interference to other users.
Wireless Microphones NPRM: The Commission will consider a Notice of Proposed Rulemaking to address the needs of wireless microphone users, while recognizing that they must share spectrum with other wireless uses in an increasingly crowded spectral environment.
benton.org/headlines/fcc-announces-tentative-agenda-september-2014-open-meeting | Federal Communications Commission
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INCENTIVE AUCTION ITEMS
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
The Federal Communications Commission's Office of Engineering & Technology and Media Bureau have teed up three incentive auction-related items for the commissioners vetting and eventual vote. The moves are the latest in the FCC's pledge in a May auction report and order of a series of subsequent actions in preparation for the mid-2015 broadcast incentive auction. The actions comprise three notices of proposed rulemaking (NPRM's) and one final order, and deal with inter- and intra-service interference, unlicensed spectrum, wireless microphones and low-power TV's. Drafts are being circulated among the commissioners, so they have not been made public yet, but an FCC official spoke about them on background.
benton.org/headlines/fcc-circulating-quartet-incentive-auction-items | Broadcasting&Cable
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INTERNET/BROADBAND

THE QUESTION OF PREEMPTION
[SOURCE: Benton Foundation, AUTHOR: Andrew Jay Schwartzman]
[Commentary] One of the most controversial issues the Federal Communications Commission will face this fall is whether it can and should preempt (i.e., invalidate) state laws that restrict their municipalities from constructing and operating their own broadband networks. This post does not address the wisdom of these projects, but rather whether the FCC has the legal authority to preempt those state laws.
http://benton.org/node/201960
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TECH AND NET NEUTRALITY
[SOURCE: The Hill, AUTHOR: Julian Hattem]
Nearly three dozen major technology manufacturers and suppliers are warning the Obama Administration against tough new regulations on broadband Internet companies. Deciding to regulate broadband Internet service like a public utility would be “extremely disruptive” to the industry and could lead to worse service for everyone, the 33 companies wrote in a letter to Commerce Secretary Penny Pritzker. “Resources that would normally be spent on building and improving infrastructure would instead be spent complying with burdensome regulatory obligations, and uncertainty regarding future profitability would deter additional private investments,” wrote the companies. “If investment in broadband services declines, it will set off a domino effect of decreased investment and innovation…” Major firms like Cisco, IBM and Intel were among the companies that signed the letter.
benton.org/headlines/tech-companies-warn-web-rules-would-be-extremely-disruptive | Hill, The
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HOW FAST IS BROADBAND
[SOURCE: ars technica, AUTHOR: Jon Brodkin]
AT&T and Verizon have asked the Federal Communications Commission not to change its definition of broadband from 4Mbps to 10Mbps, saying many Internet users get by just fine at the lower speeds. "Given the pace at which the industry is investing in advanced capabilities, there is no present need to redefine 'advanced' capabilities," AT&T wrote in a filing (see FCC proceeding 14-126). "Consumer behavior strongly reinforces the conclusion that a 10Mbps service exceeds what many Americans need today to enable basic, high-quality transmissions," AT&T wrote. Verizon made similar arguments. Individual cable companies did not submit comments to the FCC, but their representative, the National Cable & Telecommunications Association (NCTA), agrees with AT&T and Verizon. The FCC has periodically raised the minimum standard for Internet service to be considered “broadband.” This affects how the commission measures industry progress in deploying sufficient Internet service to Americans, particularly in rural areas where the US subsidizes infrastructure building through the Connect America Fund.
benton.org/headlines/att-and-verizon-say-10mbps-too-fast-broadband-4mbps-enough | Ars Technica
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NETFLIX PRFORMANCE
[SOURCE: ars technica, AUTHOR: Jon Brodkin]
Months after Comcast upgraded its subscribers' Netflix performance, AT&T and Verizon have finally followed suit. The average Netflix stream on Verizon FiOS hit 2.41Mbps in August, up from 1.61Mbps in July, Netflix said in its monthly speed test update. AT&T's U-verse service offered average Netflix performance of 2.61Mbps in August, up from 1.44Mbps in July. Netflix recommends 5Mbps for high-definition quality, but there is a lot of lower quality Netflix content that requires less throughput. The boost in the averages indicates that customers are getting high-quality streams more often. AT&T and Verizon DSL improved, too, but still lag behind. Netflix on Verizon DSL only streamed at an average of 1.31Mbps in August, compared to 0.97Mbps in July. AT&T's DSL average was 1.81Mbps in August, up from 1.11Mbps in July.
benton.org/headlines/att-and-verizon-finally-giving-customers-decent-netflix-quality | Ars Technica
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SPECTRUM/WIRELESS

WHEELER AT CTIA
[SOURCE: Federal Communications Commission, AUTHOR: FCC Chairman Tom Wheeler]
The Federal Communications Commission’s previous Open Internet rules distinguished between fixed and mobile, and our tentative conclusion in this new rulemaking suggested the Commission should maintain the same
approach going forward. In this proceeding, however, we specifically recognized that there have been significant changes in the mobile marketplace since 2010. We sought comment about whether these changes should lead us to revise our treatment of mobile broadband services. The basic issue that is raised is whether the old assumptions upon which the 2010 rules were based match new realities. Here is a sample of the kinds of issues raised in this context:
What is the impact of LTE – a service promoted as offering Internet connectivity at faster speeds?
Does it make a difference that when the rules vacated by the Verizon case were written there were 200,000 LTE subscribers and today there are 120 million, with build-out complete to 300 million Americans?
What is the impact of the dramatic switch to smart devices for wireless Internet access?
Our Open Internet proceeding will look closely at both the question of what is “reasonable” and the related subject of how network management practices can be transparent to consumers and edge providers.
benton.org/headlines/prepared-remarks-fcc-chairman-tom-wheeler-2014-ctia-show | Federal Communications Commission | recode | IDG News Service | B&C | B&C – broadcasters
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TELEVISION/VIDEO

SACK THE BLACKOUT RULE
[SOURCE: USAToday, AUTHOR: FCC Chairman Tom Wheeler]
[Commentary] With the first weekend of professional football in the books, two things should be abundantly clear: The NFL is king; and the Federal Communication Commission's sports blackout rules are obsolete and have to go. The NFL no longer needs the government's help to remain viable. And we at the FCC shouldn't be complicit in preventing sports fans from watching their favorite teams on TV. It's time to sack the sports blackout rules for good.
benton.org/headlines/sack-nfls-blackout-rule | USAToday
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OWNERSHIP

ENFORCING COMCAST CONDITIONS
[SOURCE: New York Post, AUTHOR: Claire Atkinson]
No matter what conditions regulators place on Comcast in order to approve its merger with Time Warner Cable, they will be toothless, according to television industry insiders. That’s because the Federal Communications Commission is unable to enforce some of the conditions it sets down, the critics claim. Just look at the conditions Comcast was supposed to adhere to -- but didn’t -- to gain approval of its purchase of NBCUniversal, the critics maintain.
benton.org/headlines/any-curbs-comcast-alliance-are-tough-enforce | New York Post
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CONTENT

APPLE-U2
[SOURCE: Wall Street Journal, AUTHOR: John Jurgensen]
Along with Apple’s announcement of its latest-model iPhones and its new smartwatch, the company also revealed that it is giving away as many as 500 million copies of veteran rock band U2’s 13th album, “Songs of Innocence,” via the iTunes Store. Apple Chief Executive Tim Cook repeatedly described the album giveaway as “the biggest release in the history of music” -- probably an accurate description, given that no album may have ever been as widely distributed. The band has a long history with the tech giant: U2 cut a deal with Apple that led to a custom iPod model for the band, which came pre-loaded with “How to Dismantle an Atomic Bomb.” “Songs of Innocence” appears automatically on a user’s “purchased” page in the iTunes store, requiring customers to simply click on it to download. As part of its deal with Apple, the band will also benefit from the kind of massive promotional blitz that few if any record companies today could afford. The promotion highlights the way recorded music is often more valuable these days as a promotional tool than as a stand-alone product.
benton.org/headlines/u2-apple-and-deal-behind-getting-songs-innocence-free-charge | Wall Street Journal
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TELECOM

SPREADING WORD OF LIFELINE
[SOURCE: Federal Communications Commission, AUTHOR: FCC Commissioner Mignon Clyburn]
Most Americans take their home phone service for granted. But for families who are struggling to pay for food, clothing and shelter, phone service is a luxury that often must be put on hold for better times. Unfortunately, those better times may be elusive without the connection that basic phone service provides to jobs, support from family and friends, and emergency services. That's where the Federal Communications Commission's Lifeline program fits in. The FCC is teaming up with our partners in the states to host Lifeline Awareness Week to get out the word about this vital program. We want to make sure that low-income consumers are aware of the program -- and understand the rules for participation. Together with the National Association of Regulatory Utility Commissioners and the National Association of State Utility Consumer Advocates, our partners in Lifeline Awareness Week, we have posted on our web site important information about program benefits and the rules for companies and consumers alike.
benton.org/headlines/spreading-good-word-about-lifeline | Federal Communications Commission
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GOVERNMENT & COMMUNICATIONS

FCC DOT GOV
[SOURCE: Federal Communications Commission, AUTHOR: David Bray]
In August the Federal Communications Commission launched a project to improve fcc.gov and unify all of our related subdomains. The project is focused on enhancing our website to allow the FCC to more effectively meet the needs of our site’s internal and external stakeholders. To ensure optimal usability for fcc.gov users, the FCC has partnered with industry leaders on user experience, search and analytics. Over the next four months, the project team will conduct research, prototyping, and usability-testing to complete a data and stakeholder-driven design for fcc.gov. The first phase of the project will be completed by mid-January and will include improved search capabilities of the FCC’s current publicly available content and a working prototype of the new fcc.gov. Phase one of the project will focus on four key areas:
Audience Research: We are conducting internal and external stakeholder interviews to gather and analyze information to define our website’s target-audiences and their typical tasks, needs, and obstacles.
Content Research: We are determining what information our target audiences are expecting, and based on their information needs, how we should group and package information.
Prototyping & Usability Testing: We will be moving the information outlined in steps one and two into a documented site structure of a visual representation of fcc.gov.
Search & Analytics: We will be making significant improvements to the search capabilities of the FCC’s current publicly available content.
benton.org/headlines/future-fccgov | Federal Communications Commission
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POLICYMAKERS

GIVE CTO TOOLS TO SUCCEED
[SOURCE: San Jose Mercury News, AUTHOR: Editorial staff]
[Commentary] The welcome selection of Google's Megan Smith as America's next chief technology officer is a big win for Silicon Valley and for women in technology -- if, and only if, President Barack Obama gives her the power and budget she needs to succeed in the job. President Obama made a big show of creating the CTO position on his first day as president in 2009. He then rolled out a well-received, ambitious set of founding goals for Smith's predecessor, outgoing CTO Todd Park: 1) Protect the openness of the Internet. 2) Encourage diversity in media ownership. 3) Protect our children while preserving the First Amendment. 4) Safeguard our right to privacy. The CTO's office has to date largely failed on every one of those goals, although Park is hardly to blame.
benton.org/headlines/president-must-give-cto-necessary-tools-succeed | San Jose Mercury News
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Microsoft Near Deal to Buy Minecraft Maker Mojang

Apparently, Microsoft is in serious discussions to buy Mojang AB, the Swedish company behind the popular "Minecraft" videogame. The deal would be valued at more than $2 billion.

A sale would be a surprising turn for closely held Mojang, whose 35-year-old founder, Markus Persson, has shunned outside investment and is revered in the videogame community for railing publicly against big firms, including Microsoft. Meanwhile, "Minecraft" could reinvigorate Microsoft's 13-year-old Xbox videogame business by giving it a cult hit with a legion of young fans. Mojang has sold over 50 million copies of "Minecraft" since it was initially released in 2009 and earned more than $100 million in profit last year from the game and merchandise. The game is already available on Xbox, as well as on Sony's PlayStation, PCs and smartphones.

At Work: Remote Data Wipes of Workers' Personal Devices Are Rising

You can bring your own device to work -- but don't be surprised if your company erases all of your cat photos.

Remote data wipes of workers' personal phones, tablets and laptops are on the rise, according to Fiberlink Communications, a company that helps companies manage their fleets of mobile devices. Fiberlink's software wiped data from 81,000 devices in the first six months of this year, compared with 51,000 in the last six months of 2013, an analysis of its client database has found. That works out to about three wiped devices a minute, or 450 a day.

U2, Apple and the Deal Behind Getting ‘Songs of Innocence’ Free of Charge

Along with Apple’s announcement of its latest-model iPhones and its new smartwatch, the company also revealed that it is giving away as many as 500 million copies of veteran rock band U2’s 13th album, “Songs of Innocence,” via the iTunes Store.

Apple Chief Executive Tim Cook repeatedly described the album giveaway as “the biggest release in the history of music” -- probably an accurate description, given that no album may have ever been as widely distributed. The band has a long history with the tech giant: U2 cut a deal with Apple that led to a custom iPod model for the band, which came pre-loaded with “How to Dismantle an Atomic Bomb.” “Songs of Innocence” appears automatically on a user’s “purchased” page in the iTunes store, requiring customers to simply click on it to download. As part of its deal with Apple, the band will also benefit from the kind of massive promotional blitz that few if any record companies today could afford. The promotion highlights the way recorded music is often more valuable these days as a promotional tool than as a stand-alone product.

President must give CTO the necessary tools to succeed

[Commentary] The welcome selection of Google's Megan Smith as America's next chief technology officer is a big win for Silicon Valley and for women in technology -- if, and only if, President Barack Obama gives her the power and budget she needs to succeed in the job.

President Obama made a big show of creating the CTO position on his first day as president in 2009. He then rolled out a well-received, ambitious set of founding goals for Smith's predecessor, outgoing CTO Todd Park: 1) Protect the openness of the Internet. 2) Encourage diversity in media ownership. 3) Protect our children while preserving the First Amendment. 4) Safeguard our right to privacy. The CTO's office has to date largely failed on every one of those goals, although Park is hardly to blame.

Court Rejects NAB Challenge to Sharing Advisory

The US Court of Appeals for the District of Columbia has dismissed a National Association of Broadcasters petition to review the Federal Communications Commission’s Media Bureau's public notice putting broadcasters on notice that the FCC would be scrutinizing sharing arrangements that included financial elements.

The court said the bureau advice was not challengeable because it was not an order and had not first been reviewed by the FCC, as statute requires before a staff decision can be challenged in court. The court said that because the advisory is not a final order of the FCC, so that NAB would have had to file an application for review, wait until the FCC ruled on that, then sue.

FCC Announce Panelist Information for Open Internet Roundtables

The Federal Communications Commission provide panelist names and other information about the first two events in the Open Internet roundtable series: “Policy Approaches to Ensure an Open Internet” and “Mobile Broadband and the Open Internet,” which will both take place on September 16, 2014.

When news moves faster than humans can travel, it changes everything

[Commentary] When news traveled at human speed, there was a lag between what happened and when (and sometimes what) people found out about it. The shift over the last 100 years to a world cinched together first with wires and then with wireless networks is marked by an even more profound characteristic: instant communication. Instantaneity has changed us in countless ways.

[David T.Z. Mindich teaches media studies at Saint Michael's College]

The Question of Preemption: The FCC Considers Lifting Municipal Broadband Restrictions

[Commentary] One of the most controversial issues the Federal Communications Commission will face this fall is whether it can and should preempt (i.e., invalidate) state laws that restrict their municipalities from constructing and operating their own broadband networks. This post does not address the wisdom of these projects, but rather whether the FCC has the legal authority to preempt those state laws.