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October 2014

October 31, 2014 (FCC's New Approach on Net Neutrality)

BENTON'S COMMUNICATIONS-RELATED HEADLINES for FRIDAY, OCTOBER 31, 2014 (Happy Halloween)

A peak at next week’s events http://benton.org/calendar/2014-11-02--P1W/


INTERNET/BROADBAND
   FCC ‘Net Neutrality’ Plan Calls for More Power Over Broadband
   What Is All This Talk About 'Forbearance?' - Andrew Jay Schwartzman analysis
   The American way of broadband: slow - David Lazarus analysis
   Comcast, AT&T seek to reassure on no plans for Internet 'fast lanes'
   Verizon warns FCC could violate law if broadband is reclassified
   The Cost of Connectivity 2014 - research
   Learning from the Rural Broadband Experiments - FCC press release
   Telecom Industry Gets Serious About G.fast [links to web]
   American Net Leadership Is a Timely Foreign Policy Challenge - Stuart Brotman analysis [links to web]

ELECTIONS AND MEDIA
   FCC Proposes Cable, Satellite, Radio Database Extension
   TV: Reports of my death have been greatly exaggerated [links to web]
   US Senate races to attract 1 million TV ads - research [links to web]
   New Analysis Finds the Affordable Care Act Mentioned in 14% of This Year’s Political Ads - Kaiser research [links to web]

PRIVACY/SECURITY
   Somebody’s Already Using Verizon’s ID to Track Users
   Verizon Wireless crosses the privacy line on Web browsing - Los Angeles Times editorial

EDUCATION
   What Digital Literacy Looks Like in a Classroom - op-ed [links to web]

EMERGENCY COMMUNICATIONS
   FirstNet Completes Successful Request for Information and Public Comment Period - press release [links to web]
   More Data: Pocket Dialing - FCC Commissioner O'Rielly press release [links to web]

OWNERSHIP
   Justice Department Requires Divestitures in Media General Acquisition of Lin Media - press release
   Lenovo wraps up its deal to buy Motorola from Google [links to web]

STORIES FROM ABROAD
   Hungary Internet tax cancelled after mass protests [links to web]
   Connecting the Next 1.5 Billion: Making the Connection Between Spectrum and Innovation - ITU press release [links to web]
   American Net Leadership Is a Timely Foreign Policy Challenge - Stuart Brotman analysis [links to web]
   Mobile-phone mapping succeeds where national censuses fail [links to web]

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INTERNET/BROADBAND

NEW NETWORK NEUTRALITY PLAN
[SOURCE: Wall Street Journal, AUTHOR: Gautham Nagesh]
Federal Communications Commission Chairman Tom Wheeler is laying the groundwork for expanding the agency’s authority over broadband service, people familiar with his thinking say, a move long sought by advocates of stricter regulation of Internet-service providers. But the plan isn’t expected to satisfy all proponents of “net neutrality” -- the principle that all Internet traffic should be treated equally -- because it would still allow broadband providers to cut deals with content companies for special access to customers. And whatever approach the FCC tries almost certainly will be met with a legal challenge from broadband providers, who would resist giving the agency a heavier hand. Reclassifying broadband to expand the FCC’s authority without explicitly banning broadband providers’ deals would allow the agency to keep such authority in its back pocket to block any arrangements that it views as anticompetitive. He also wants to ensure that the FCC’s final rules, which are expected by year-end, can hold up in court. The plan now under consideration would separate broadband into two distinct services: a retail one, in which consumers would pay broadband providers for Internet access; and a back-end one, in which broadband providers serve as the conduit for websites to distribute content. The FCC would then classify the back-end service as a common carrier, giving the agency the ability to police any deals between content companies and broadband providers. The main advantage of the hybrid proposal, as opposed to full reclassification, is that it wouldn’t require the FCC to reverse earlier decisions to deregulate broadband providers, which were made in the hopes of encouraging the adoption and deployment of high-speed broadband. The authors of the new proposal believe that not having to justify reversing itself would put the FCC on firmer legal ground. People familiar with the FCC’s thinking say the agency remains skeptical of a flat ban on paid prioritization, noting that even common carriers are allowed to charge for certain specialized services.
benton.org/headlines/fcc-net-neutrality-plan-calls-more-power-over-broadband | Wall Street Journal | ars technica
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WHAT’S ALL THIS TALK ABOUT FORBEARANCE?
[SOURCE: Benton Foundation, AUTHOR: Andrew Jay Schwartzman]
[Commentary] The time has come to discuss forbearance. The debate over Network Neutrality has increasingly focused on the Federal Communications Commission’s forbearance powers. This is because the central debate over the Commission’s proposed NN rules is over “reclassification.” Currently, the FCC governs broadband service under Title I of the Communications Act, which gives the FCC relatively few regulatory powers. Many tech companies and public interest advocates want the FCC to invoke the stronger regulatory scheme available under Title II of the Communications Act. Several elements of Title II, the framework long used for traditional telephone-type services, would not be needed and, indeed, could be very counterproductive if applied to broadband. In such situations, the Telecommunications Act of 1996 gives the FCC the power to waive enforcement of certain aspects of Title II (i.e., “forbear”). Hence, the debate about forbearance.
http://benton.org/blog/what-all-talk-about-forbearance
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SLOW BROADBAND
[SOURCE: Los Angeles Times, AUTHOR: David Lazarus]
[Commentary] Why does it seem as if telecom companies -- phone, cable, satellite -- always appear to be pulling a fast one on customers? The simple answer: because they can. And there's a reason for that: In many places, consumers have only a few telecom providers to choose from. This raises another question: Why doesn't the United States do what many other developed nations have done to promote broadband and wireless competition? It sounds wonky, but what open access means is that network providers are required to allow rival companies to piggyback on their wires or airwaves at a fair, transparent price. The idea is that this allows more players to enter a market and, thus, maintain a more competitive and innovative environment. By opening existing broadband networks to competing services, the consistent result is lower prices and more innovation.
benton.org/headlines/american-way-broadband-slow | Los Angeles Times
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COMCAST, AT&T PLEDGE NO FAST LANES
[SOURCE: Reuters, AUTHOR: Alina Selyukh]
Comcast and AT&T have no plans to create Internet "fast lanes" that may hurt consumers' freedom to roam the Web, the broadband providers told Senate Judiciary Committee Chairman Patrick Leahy (D-VT). "We have repeatedly made clear -- both to our customers and more generally to the public -- 'Comcast doesn't prioritize Internet traffic or have paid fast lanes, and we have no plans to do so,'" Comcast Executive Vice President David Cohen wrote to Chairman Leahy. AT&T said it had no plans to strike deals with third parties to prioritize traffic as it travels the so-called last mile of the network from the ISP's facilities to consumers' screens "without the knowledge and direction of the end user." AT&T's Tim McKone, executive vice president for federal relations, wrote that not all prioritization presents a threat to the openness of the Internet, pointing out examples like health or alarm monitoring. He also argued that reclassifying broadband would be a "legally dubious path" that would not actually prevent paid prioritization.
benton.org/headlines/comcast-att-seek-reassure-no-plans-internet-fast-lanes | Reuters | Multichannel News
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VERIZON RECLASSIFICATION ANALYSIS
[SOURCE: The Hill, AUTHOR: Julian Hattem]
Verizon says the Federal Communications Commission would break the law by taking a controversial step on new rules for the Internet. Reclassifying broadband Internet service so that the FCC could regulate it like traditional phone service would be a “radical and risky” move “with significant harmful consequences,” Verizon executive Michael Glover told the agency in a letter accompanying a 20-page legal analysis of the action. Any attempt to reclassify broadband service, even “hybrid” approaches that have been proposed, “would face significant legal challenge and would be unlikely to withstand appeal,” Verizon asserted in its white paper. That is “doubly true” when it comes to wireless Internet services, which the FCC has considered including in its new rules for net neutrality. Verizon practically promised a lawsuit if the agency decided to reclassify Internet service to use the tougher authority.
benton.org/headlines/verizon-warns-fcc-could-violate-law-if-broadband-reclassified | Hill, The | read Verizon’s paper | B&C
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THE COST OF CONNECTIVITY 2014
[SOURCE: New America Foundation, AUTHOR: Nick Russo, Robert Morgus, Danielle Kehl, Sarah Morris]
While the market for broadband has improved in parts of the US, Europe, and Asia, the data set from the 2014 Cost of Connectivity demonstrates through several types of analysis that customers in the US still tend to pay more than their peers in Asia and Europe for comparable broadband Internet service. Our findings show that the average cost of plans in nearly every speed tier we selected is higher in the US than in Europe, and seven of the nine US cities surveyed for the report have average prices that are higher than the median for plans offered between 25 and 50 Mbps download speeds. We found similar results when comparing the average speed of plans ranging from $35 to $50, and the average data cap for mobile broadband plans ranging from $35 to $45. Finally, regression analysis of the data suggests that most US cities lag behind European and Asian cities in our sample in terms of what consumers pay for 25 Mbps of service, and what consumers can get for $50. As in previous years, we continue to find that US municipal broadband providers offer some of the fastest speeds available in the country at relatively affordable prices. While our report presents a number of findings, we invite others to use the data for further analysis.
benton.org/headlines/cost-connectivity-2014 | New America Foundation
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RURAL BROADBAND EXPERIMENTS
[SOURCE: Federal Communications Commission, AUTHOR: Carol Mattey]
The Federal Communications Commission’s Wireline Competition Bureau opened the application filing window for parties interested in participating in the FCC’s rural broadband experiments. Already the FCC has seen activity in the online system it is using to accept the applications, with many entities working on their applications. Interested parties have until 6 p.m. on Friday, November 7 to submit applications for this funding opportunity. The opening of the filing window marks a historic occasion. For the first time, the FCC is using a competitive bidding process to award ongoing Connect America Fund support that will bring broadband to rural America. Applicants have the opportunity to bid on $100 million in available funding through the rural broadband experiments, with defined criteria for the level of service we expect winning bidders to provide and an objective, clear-cut methodology for selecting winning applications. Already, the FCC has learned a lot from these experiments: working on the nitty-gritty details of the application form, doing outreach to get the word out to potential bidders, and getting the online system up and running. Once the application window closes, the FCC will be learning about competitive interest to build networks to rural communities that will deliver services that far exceed the FCC’s current performance standards. And I’m sure the FCC will learn something unexpected that will help the FCC make decisions regarding the design of the Phase II auction that will occur after the offer of model-based support to price cap carriers.
benton.org/headlines/learning-rural-broadband-experiments | Federal Communications Commission
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ELECTIONS AND MEDIA

FCC CONSIDERING POLITICAL FILE REQUIREMENTS
[SOURCE: Multichannel News, AUTHOR: John Eggerton]
In response to a petition filed by campaign finance reform groups seeking to extended online filing requirements to cable, satellite and radio, Federal Communications Commission Chairman Tom Wheeler circulated a Notice of Proposed Rulemaking to that effect for a vote by the other commissioners. TV broadcasters already have to file records of political ad buys to a searchable, FCC-hosted database (the FCC says it has had millions of hits on that database), but the FCC held off extending that requirement, and other public file requirements -- like equal employment opportunity, children's TV and more -- to cable and satellite operators, which are all still required to keep those files available for public inspection locally. A timetable has not been proposed for that phase-in, but the idea would be to have the larger entities go first, followed by smaller ones, and perhaps have some cut-off below which the requirement was waived.
benton.org/headlines/fcc-proposes-cable-satellite-radio-database-extension | Multichannel News
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PRIVACY/SECURITY

TRACKING VERIZON USERS
[SOURCE: Pro Publica, AUTHOR: Julia Angwin, Jeff Larson]
Twitter's mobile advertising arm enables its clients to use a hidden, undeletable tracking number created by Verizon to track user behavior on smartphones and tablets. Wired and Forbes reported that the two largest cellphone carriers in the United States, Verizon and AT&T, are adding the tracking number to their subscribers' Internet activity, even when users opt out. The data can be used by any site -- even those with no relationship to the telecoms -- to build a dossier about a person's behavior on mobile devices -- including which apps they use, what sites they visit and for how long. MoPub, acquired by Twitter in 2013, bills itself as the "world's largest mobile ad exchange." It uses Verizon's tag to track and target cellphone users for ads, according to instructions for software developers posted on its website. Twitter declined to comment. AT&T said that its actions are part of a test. Verizon says it doesn't sell information about the demographics of people who have opted out.
benton.org/headlines/somebodys-already-using-verizons-id-track-users | Pro Publica
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VERIZON AND PRIVACY
[SOURCE: Los Angeles Times, AUTHOR: Editorial staff]
[Commentary] Verizon Wireless, the country's most popular mobile phone operator, has been quietly inserting into its customers' Web browsing sessions an identifier unique to each device they use, making it possible for websites and advertising networks to build profiles of individual customers based on their browsing habits. What's worse, even if Verizon's subscribers happen to find out about this and ask the company to stop, it won't. Rather than inviting the rest of the Internet to violate its customers' privacy, Verizon should find a more respectful way to generate advertising dollars. Ideally, Verizon and other Internet providers wouldn't plant identifiers in their customers' data without their explicit consent in advance. If Verizon doesn't see the problem with its actions here, the Federal Trade Commission should enlighten it.
benton.org/headlines/verizon-wireless-crosses-privacy-line-web-browsing | Los Angeles Times
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OWNERSHIP

JUSTICE DEPARTMENT REQUIRES DIVESTITURES IN MEDIA GENERAL ACQUISITION OF LIN MEDIA
[SOURCE: Department of Justice, AUTHOR: Press release]
The Department of Justice will require Media General to divest WVTM-TV(NBC), located in the Birmingham, Alabama, Designated Market Area (DMA); WJCL-TV (ABC) and WTGS (FOX), both located in the Savannah, Georgia, DMA; WALA-TV (FOX), located in the Mobile, Alabama/Pensacola, Florida, DMA; WJAR-TV (NBC), located in the Providence, Rhode Island/New Bedford, Massachusetts, DMA; and WLUK-TV(FOX) and WCWF-TV (CW), both located in the Green Bay/Appleton, Wisconsin, DMA, in order to proceed with its acquisition of LIN Media for $1.5 billion. The department said that without the required divestitures, prices for broadcast television spot advertising would likely increase to advertisers in the DMAs. The Justice Department’s Antitrust Division filed a civil antitrust lawsuit in the US District Court for the District of Columbia to block the proposed transaction. At the same time, the department filed a proposed settlement that, if approved by the court, would resolve the competitive concerns alleged in the lawsuit. Under the terms of the proposed settlement, Media General and LIN must divest assets used in the operation of WVTM-TV and WJCL-TV to Hearst Television; WALA-TV to Meredith Corporation; and WJAR-TV, WLUK-TV, WCWF-TV, and WTGS to Sinclair Broadcast Group, or to other acquirers approved by the United States.
benton.org/headlines/justice-department-requires-divestitures-media-general-acquisition-lin-media | Department of Justice
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What Is All This Talk About 'Forbearance?'

[Commentary] The time has come to discuss forbearance. The debate over Network Neutrality has increasingly focused on the Federal Communications Commission’s forbearance powers. This is because the central debate over the Commission’s proposed NN rules is over “reclassification.” Currently, the FCC governs broadband service under Title I of the Communications Act, which gives the FCC relatively few regulatory powers. Many tech companies and public interest advocates want the FCC to invoke the stronger regulatory scheme available under Title II of the Communications Act. Several elements of Title II, the framework long used for traditional telephone-type services, would not be needed and, indeed, could be very counterproductive if applied to broadband. In such situations, the Telecommunications Act of 1996 gives the FCC the power to waive enforcement of certain aspects of Title II (i.e., “forbear”). Hence, the debate about forbearance.

FCC ‘Net Neutrality’ Plan Calls for More Power Over Broadband

Federal Communications Commission Chairman Tom Wheeler is laying the groundwork for expanding the agency’s authority over broadband service, people familiar with his thinking say, a move long sought by advocates of stricter regulation of Internet-service providers.

But the plan isn’t expected to satisfy all proponents of “net neutrality” -- the principle that all Internet traffic should be treated equally -- because it would still allow broadband providers to cut deals with content companies for special access to customers. And whatever approach the FCC tries almost certainly will be met with a legal challenge from broadband providers, who would resist giving the agency a heavier hand. Reclassifying broadband to expand the FCC’s authority without explicitly banning broadband providers’ deals would allow the agency to keep such authority in its back pocket to block any arrangements that it views as anticompetitive. He also wants to ensure that the FCC’s final rules, which are expected by year-end, can hold up in court.

The plan now under consideration would separate broadband into two distinct services: a retail one, in which consumers would pay broadband providers for Internet access; and a back-end one, in which broadband providers serve as the conduit for websites to distribute content. The FCC would then classify the back-end service as a common carrier, giving the agency the ability to police any deals between content companies and broadband providers.

The main advantage of the hybrid proposal, as opposed to full reclassification, is that it wouldn’t require the FCC to reverse earlier decisions to deregulate broadband providers, which were made in the hopes of encouraging the adoption and deployment of high-speed broadband. The authors of the new proposal believe that not having to justify reversing itself would put the FCC on firmer legal ground. People familiar with the FCC’s thinking say the agency remains skeptical of a flat ban on paid prioritization, noting that even common carriers are allowed to charge for certain specialized services.

The American way of broadband: slow

[Commentary] Why does it seem as if telecom companies -- phone, cable, satellite -- always appear to be pulling a fast one on customers? The simple answer: because they can. And there's a reason for that: In many places, consumers have only a few telecom providers to choose from.

This raises another question: Why doesn't the United States do what many other developed nations have done to promote broadband and wireless competition? It sounds wonky, but what open access means is that network providers are required to allow rival companies to piggyback on their wires or airwaves at a fair, transparent price. The idea is that this allows more players to enter a market and, thus, maintain a more competitive and innovative environment. By opening existing broadband networks to competing services, the consistent result is lower prices and more innovation.

Verizon Wireless crosses the privacy line on Web browsing

[Commentary] Verizon Wireless, the country's most popular mobile phone operator, has been quietly inserting into its customers' Web browsing sessions an identifier unique to each device they use, making it possible for websites and advertising networks to build profiles of individual customers based on their browsing habits. What's worse, even if Verizon's subscribers happen to find out about this and ask the company to stop, it won't. Rather than inviting the rest of the Internet to violate its customers' privacy, Verizon should find a more respectful way to generate advertising dollars. Ideally, Verizon and other Internet providers wouldn't plant identifiers in their customers' data without their explicit consent in advance. If Verizon doesn't see the problem with its actions here, the Federal Trade Commission should enlighten it.

Mobile-phone mapping succeeds where national censuses fail

Traditionally, the way we know who lives where is the result of national censuses. But those head counts can be expensive and occur rarely, and a new study suggests that the passive tallying that happens every time our mobile phones check into a cellphone tower can provide a sort of living census that, researchers say, can improve how we respond to everything from earthquake devastation to the spread of Ebola.

More Data: Pocket Dialing

In response to my recent blog post regarding the harmful consumer practice of pocket dialing, I received a letter from Kelly Dutra, the Director of the Washington County Consolidated Communications Agency (WCCCA) in Beaverton, Oregon. The letter begins, “I read with interest the Business Week article ‘FCC Commissioner: Butt-Dialing is Taxing 9-1-1’ and let you know you are right on target. They account for over 30% of our wireless 9-1-1 calls. In 2005 we installed a system that all wireless calls must pass through to make it to a Calltaker. The wireless 9-1-1 caller must speak or press any key for the system to recognize it as an actual call to be passed through.”

Justice Department Requires Divestitures in Media General Acquisition of Lin Media

The Department of Justice will require Media General to divest WVTM-TV(NBC), located in the Birmingham, Alabama, Designated Market Area (DMA); WJCL-TV (ABC) and WTGS (FOX), both located in the Savannah, Georgia, DMA; WALA-TV (FOX), located in the Mobile, Alabama/Pensacola, Florida, DMA; WJAR-TV (NBC), located in the Providence, Rhode Island/New Bedford, Massachusetts, DMA; and WLUK-TV(FOX) and WCWF-TV (CW), both located in the Green Bay/Appleton, Wisconsin, DMA, in order to proceed with its acquisition of LIN Media for $1.5 billion.

The department said that without the required divestitures, prices for broadcast television spot advertising would likely increase to advertisers in the DMAs. The Justice Department’s Antitrust Division filed a civil antitrust lawsuit in the US District Court for the District of Columbia to block the proposed transaction. At the same time, the department filed a proposed settlement that, if approved by the court, would resolve the competitive concerns alleged in the lawsuit. Under the terms of the proposed settlement, Media General and LIN must divest assets used in the operation of WVTM-TV and WJCL-TV to Hearst Television; WALA-TV to Meredith Corporation; and WJAR-TV, WLUK-TV, WCWF-TV, and WTGS to Sinclair Broadcast Group, or to other acquirers approved by the United States.

Hungary Internet tax cancelled after mass protests

Hungary has decided to shelve a proposed tax on internet data traffic after mass protests against the plan.

"This tax in its current form cannot be introduced," Prime Minister Viktor Orban said. Large-scale protests began on Oct 26, when demonstrators hurled old computer parts at the headquarters of Orban's ruling Fidesz party. The draft law -- condemned by the European Union -- would levy a fee on each gigabyte of internet data transferred. The protesters objected to the financial burden but also feared the move would restrict free expression and access to information. The levy was set at 150 forints (£0.40; 0.50 euros; $0.60) per gigabyte of data traffic. After thousands protested the government decided to cap the tax at 700 forints per month for individuals and 5,000 forints for companies. But that did not placate the crowds.

Analysis

What Is All This Talk About 'Forbearance?'

On October 30, the Wall Street Journal reported that the Federal Communications Commission is seriously considering reclassifying broadband into two distinct services: a retail one, in which consumers would pay broadband providers for Internet access; and a back-end one, in which broadband providers serve as the conduit for websites to distribute content.

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