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December 2014

Russia's Only Independent TV Channel Forced Into Meager Studio

As other Russian television channels have grown increasingly subservient in 2014, providing propaganda backing for the annexation of the Crimean Peninsula and Russia's aggressive policy toward Ukraine, Dozhd news channel didn't follow the lead -- and is now paying for it. President Vladimir Putin's government has been careful not to order the channel to shut down, but a Kremlin-instigated smear campaign has driven this rare independent broadcaster to the brink of demise. A Soviet-era apartment in central Moscow now houses the studio of Dozhd, whose combined online and TV audience is about 12 million. Anchorman Pavel Lobkov sits on a chair in what was once a spacious living room.

Mexico competition watchdog signs off on AT&T's Iusacell buy

Mexico's competition regulator approved AT&T's $1.7 billion purchase of local cellphone company Iusacell, with unspecified conditions. The Federal Competition Commission said it set conditions on the deal to "avoid risks to the process of competition" in markets where Iusacell would compete with Carlos Slim's America Movil, which previously counted AT&T as a minority investor. America Movil is Mexico's biggest mobile operator, while Iusacell is a distant third. AT&T sold its America Movil shares in summer 2014, before announcing its deal with Iusacell in November.

December 22, 2014 (Sony; #NetNeutrality)

BENTON'S COMMUNICATIONS-RELATED HEADLINES for MONDAY, DECEMBER 22, 2014


CYBERSECURITY
   US attributes Sony attack to North Korea
   President Obama: Sony Pictures 'made a mistake' in canceling 'The Interview' [links to web]
   Statement By Secretary Johnson On Cyber Attack On Sony Pictures Entertainment - press release [links to web]
   US Asks China to Help Rein In Korean Hackers [links to web]
   President Obama: North Korea's hack not war, but 'cybervandalism' [links to web]
   How the Hacking at Sony Over ‘The Interview’ Became a Horror Movie - David Carr analysis [links to web]
   Sony hack raises journalism ethics issues, too - San Francisco Chronicle editorial [links to web]
   North Korea barely has the Internet. And that could be good defense in a cyberwar. [links to web]
   The Electronic Equivalent of War - James Glassman editorial [links to web]
   Poll Shows Broad Impact of Cyberattacks [links to web]

INTERNET/BROADBAND
   Congress wants to legislate network neutrality. Here’s what that might look like - analysis
   Congress Steps In to Protect the Internet - Wall Street Journal editorial [links to web]
   US network neutrality campaign enables foreign governments' Internet control - Rudolph May op-ed [links to web]
   Why Independent Music Fans Need Real Network Neutrality - Future of Music Coalition op-ed [links to web]
   Wait, Cuba has its own Internet? - analysis
   Vermont connects broadband library network [links to web]
   Four Ways 2014 Was a Pivotal Year for the Internet - analysis
   Google Fiber Delays Expansion Decision Until 2015 [links to web]

TELEVISION
   This tiny legal tweak could change the way you watch TV and get online - Brian Fung analysis

WIRELESS/SPECTRUM
   FCC mobile competition report once again dodges its key question – is the market competitiove? - analysis [links to web]
   Tribal Mobility Fund Phase I Support Authorized for Eleven Winning Bids - public notice [links to web]
   For $90 million, T-Mobile will settle FTC charges that it slipped bogus fees onto wireless bills
   Statement From FCC Chairman Tom Wheeler On T-Mobile Settlement - press release [links to web]
   How to bring mobile coverage to the remotest parts of the world [links to web]
   Free hotel Wi-Fi coming, with strings attached [links to web]

OWNERSHIP
   Google files lawsuit against Mississippi attorney general
   Pandora cites free speech to defend against artist demands for royalties - Jon Healey analysis [links to web]

JOURNALISM
   President Obama called on women reporters for all eight questions at his press conference [links to web]
   Julie Drizin named executive director of Current [links to web]
   5 Questions for the future of news literacy - analysis [links to web]

LOBBYING
   EBay follows tech crowd, cutting ties with ALEC [links to web]

GOVERNMENT & COMMUNICATIONS
   Speaker Boehner invites President Obama to deliver State of the Union [links to web]
   Judge: It’s OK for cops to create fake Instagram accounts [links to web]
   Wisconsin Targets the Media - WSJ editorial [links to web]
   Increasing the Reach of Census Bureau Data - press release [links to web]

POLICYMAKERS
   The year Congress hit rock bottom - analysis [links to web]
   FTC Raises Its Voice Under Its Soft-Spoken Chairwoman
   FDA Oversight in the Internet Age [links to web]

STORIES FROM ABROAD
   Facebook caves to Russian censorship, blocks page supporting Putin critic [links to web]
   The news media crackdown in Turkey threatens democracy - Washington Post editorial [links to web]

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CYBERSECURITY

US ATTRIBUTES SONY ATTACK TO NORTH KOREA
[SOURCE: Washington Post, AUTHOR: Ellen Nakashima]
Federal investigators accused North Korea of carrying out a computer attack against Sony Pictures Entertainment, blaming the government for an intrusion that exposed corporate e-mails, wiped out computer data and underlined the cyber capabilities of one of the United States’ top adversaries. The new claim marks a significant escalation -- the first time that the United States has openly laid blame on a foreign government for a destructive cyberattack against an American corporation. The statement said the conclusion was based in part on a “technical analysis” of the malware used in the attack, which “revealed links to other malware that the FBI knows North Korean actors previously developed.” The FBI said the attack was also linked to several Internet protocol addresses “associated with known North Korean infrastructure.” North Korea’s actions were “intended to inflict significant harm on a US business and suppress the right of American citizens to express themselves,” the FBI said. “Though we have seen many different types of intrusions targeting US networks, the destructive nature of this attack, coupled with its coercive nature, sets it apart from typical cyber incidents,” a senior administration official said.
benton.org/headlines/us-attributes-sony-attack-north-korea | Washington Post | The Verge
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INTERNET/BROADBAND

CONGRESS WANTS TO LEGISLATE NETWORK NEUTRALITY. HERE'S WHAT THAT MIGHT LOOK LIKE
[SOURCE: Washington Post, AUTHOR: Brian Fung]
Republicans in Congress appear likely to introduce legislation in January 2015 with an industry-backed proposal that would preempt efforts by the Federal Communications Commission to draw up new rules for Internet providers. Apparently, while key details of the proposed bill are still being hammered out, the legislation would attempt to end a debate over the FCC's power to regulate network neutrality. One important piece of the proposed legislation would establish a new way for the FCC to regulate broadband providers by creating a separate provision of the Communications Act known as "Title X". Title X would enshrine elements of the tough net neutrality principles called for by President Barack Obama. In exchange for Title X, the FCC would refrain from regulating net neutrality using Title II of the Communications Act.
benton.org/headlines/congress-wants-legislate-network-neutrality-heres-what-might-look | Washington Post
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WAIT, CUBA HAS ITS OWN INTERNET
[SOURCE: Washington Post, AUTHOR: Nancy Scola]
[Commentary] The Cuban Internet is different from the Internet that most of the rest of the world knows. And on the Cuban version of the Internet, there is no Twitter, no YouTube, few blogs or publications from the United States or elsewhere beyond the boundaries of that island nation. Instead, that Cuba-wide web is limited to a national e-mail system, some government-approved Web sites, a Cuban encyclopedia, and little else.
benton.org/headlines/wait-cuba-has-its-own-internet | Washington Post
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FOUR WAYS 2014 WAS A PIVOTAL YEAR FOR THE INTERNET
[SOURCE: Free Press, AUTHOR: Timothy Karr]
[Commentary] Here are the four Internet issues that played leading roles in 2014:
1) Network Neutrality: This revolutionary principle is under attack from the phone and cable companies that control access in the United States
2) Consolidation: Too many communities can choose from only one or two Internet-access providers
3) Online Privacy: Congress failed to pass legislation to reign in government snooping powers
4) Community Networks: With big Internet providers like Comcast gaining notoriety for dismal customer service, municipal broadband networks have gained traction
If you value free speech, keep an eye on these four issues as 2015 gets underway.
benton.org/headlines/four-ways-2014-was-pivotal-year-internet | Free Press
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TELEVISION

THIS TINY LEGAL TWEAK COULD CHANGE THE WAY YOU WATCH TV AND GET ONLINE
[SOURCE: Washington Post, AUTHOR: Brian Fung]
The Federal Communications Commission is proposing a tweak to the nation's TV rules, suggesting that new online video providers be treated just like the country's traditional cable and satellite TV companies. That means companies offering live television over the Internet -- such as the now-shuttered Aereo -- would be given the same privileges (and requirements) that apply to companies such as Comcast or Time Warner Cable. In theory, this means online video providers would be able to take advantage of certain protections when negotiating with programmers for the right to broadcast their content. Programmers, meanwhile, could begin charging these distributors money. Notably, though, the FCC's rules would only apply to firms that offer "stream[s] of prescheduled video programming." So services like YouTube and Hulu would not be covered, because they offer playback on demand. The FCC believes that streamlining these rules would help newer, smaller video providers grow as more people start watching TV over the Internet.
benton.org/headlines/tiny-legal-tweak-could-change-way-you-watch-tv-and-get-online | Washington Post
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WIRELESS/SPECTRUM

FOR $90 MILLION, T-MOBILE WILL SETTLE FTC CHARGES THAT IT SLIPPED BOGUS FEES ONTO WIRELESS BILLS
[SOURCE: Washington Post, AUTHOR: Brian Fung]
T-Mobile is agreeing to pay at least $90 million -- and possibly as much as $112.5 million -- as part of a settlement with federal and state officials over third-party fees that it added to consumers' bills without their knowledge or consent. The hidden fees showed up on billing statements as a "premium" text messaging service when in fact, the complaint alleged, the messages contained spammy horoscope information or celebrity gossip that customers never signed up for. The tactic, known as mobile cramming, benefited T-Mobile when the company took a 40 percent cut of every third-party charge. The settlement involves the Federal Trade Commission, the Federal Communications Commission, and the attorneys general of all 50 states and the District of Columbia. Under the agreement, T-Mobile will pay back more than the $90 million if the demand for refunds exceeds that amount.
benton.org/headlines/90-million-t-mobile-will-settle-ftc-charges-it-slipped-bogus-fees-wireless-bills | Washington Post | FCC | FTC | recode | |
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OWNERSHIP

GOOGLE FILES LAWSUIT AGAINST MISSISSIPPI ATTORNEY GENERAL
[SOURCE: Washington Post, AUTHOR: Hayley Tsukayama ]
Google filed a lawsuit against Attorney General Jim Hood (D-MS), accusing him of using his office to wage an unlawful campaign against the company. In its suit, Google points to e-mails released as part of a massive cyberattack against Sony Pictures Entertainment. The e-mails appear to show that AG Hood coordinated with the Motion Picture Association of America as part a campaign to force Google to crack down on criminals selling counterfeit prescription medicine and drugs online. The suit seeks to block a subpoena issued by AG Hood for information on how Google cracks down on ads that promote the sale of illegal drugs through its search engine or YouTube. Google said Hood's subpoena violates the First Amendment by asking a private company to censor material. The tech firm also said in the filing that the subpoena is "overbroad."
benton.org/headlines/google-files-lawsuit-against-mississippi-attorney-general | Washington Post | ars technica
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POLICYMAKERS

FTC CHAIRWOMAN RAMIREZ
[SOURCE: New York Times, AUTHOR: Edward Wyatt]
While public debate has raged in recent months over the Federal Communications Commission’s position on network neutrality and the Justice Department’s review of the proposed merger of Comcast and Time Warner Cable, the Federal Trade Commission has operated somewhat more in the shadows. But FTC Chairwoman Edith Ramirez is pushing to regain some of the prominence of the FTC, the nation’s top consumer protection enforcer, which just celebrated its 100th anniversary -- by focusing particular attention on digital privacy and transactions. Her efforts could lead to more turf battles, including with the FCC and the Consumer Financial Protection Bureau, which see their mandates as covering much of the same enforcement territory. The agencies say publicly that they are working well together and just divvying up the spoils. Behind the scenes, though, more than a little tension has developed. The FTC has recently warned, for example, that the FCC’s net neutrality ruling might infringe on the trade commission’s ability to protect consumers. If the communications commission reclassifies broadband Internet service as a sort of utility, the trade commission would lose some legal jurisdiction over Internet service providers. Similarly, last week, the FCC and the consumer bureau stepped in to aggressively target Sprint, the mobile phone company, on a type of case that the FTC has recently brought against two other wireless carriers, AT&T and T-Mobile. Chairwoman Ramirez, described by colleagues as a reserved yet diligent litigator, will be at the center of that turf battle, her calm demeanor masking an aggressive negotiator.
benton.org/headlines/ftc-raises-its-voice-under-its-soft-spoken-chairwoman | New York Times
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US Asks China to Help Rein In Korean Hackers

The Obama Administration has sought China’s help in blocking North Korea’s ability to launch cyberattacks, the first steps toward the “proportional response” President Barack Obama vowed to make the North pay for the assault on Sony Pictures — and as part of a campaign to issue a broader warning against future hacking, according to senior administration officials. “What we are looking for is a blocking action, something that would cripple their efforts to carry out attacks,” one official said. So far, the Chinese have not responded. Their cooperation would be critical, since virtually all of North Korea’s telecommunications run through Chinese-operated networks. It is unclear that China would choose to help, given tensions over computer security between Washington and Beijing.

President Obama: North Korea's hack not war, but 'cybervandalism'

President Barack Obama says he doesn't consider North Korea's hack of Sony Pictures "an act of war." "It was an act of cybervandalism," President Obama said. But he stuck by his criticism of Sony's decision to cancel its plans to release the movie "The Interview," which includes a cartoonish depiction of the assassination of North Korean leader Kim Jong Un, after the country threatened attacks against theaters that showed it.

Sen. John McCain (R-AZ) rejected the description saying the attack was “a new form of warfare.” “I think, again, the President does not understand this is a manifestation of a new form of warfare,” Sen McCain. “When you destroy economies, when you are able to impose censorship on the world -- and especially the United States of America -- it’s more than vandalism, it’s a new form of warfare that we’re involved in, and we need to react and react vigorously.”

How the Hacking at Sony Over ‘The Interview’ Became a Horror Movie

[Commentary] Things have gone so deeply wrong so quickly -- the movie industry will look back at this crossing of the Rubicon with a deep sense of shame -- it is hard to keep track of all the mistakes that led us here, but I’d like to take a crack at it.

1) Sony failed to improve its cybersecurity even after a vast security attack on its PlayStation platform in 2011.

2) Hollywood: Other studios were content to watch Sony dangle, saying nothing for fear that they, too, would end up on the Guardians of Peace’s naughty list.

3) The News Media: After the hackers absconded with personal and corporate information from Sony, they put the data on a site called Pastebin. Trade publications and some mainstream news outlets took the bait and spent a great deal of time rummaging through the stolen goods, and highlighting juicy emails meant to cause maximum embarrassment. What public purpose was served by printing private correspondence?

Sony hack raises journalism ethics issues, too

[Commentary] “The Interview” episode raises so many intriguing issues, from the potential of cyberterrorists to invade our privacy and disrupt our lives -- if they can attack a major studio, is any individual, company or even government truly safe? -- to the willingness of Hollywood to defend artistic freedom. It also presents legal and ethical challenges for journalists.

The question of whether to disseminate something obtained by illegal means is not easy for journalists even when the information is of vital public interest (such as the National Security Agency surveillance revelations from Edward Snowden that exposed government actions that betrayed official statements and defied constitutional protections) and the motive is to stop wrongdoing. The lines get blurrier when the motive is extortion or profit, and the content is a private correspondence in a personal or corporate context.

There are no longer any gatekeepers of news in this digital age.

Congress Steps In to Protect the Internet

[Commentary] The US Congress has saved the Internet from President Obama.

The White House had planned to end American protection for online freedom next year, but Congress used its power of the purse in the recent omnibus budget bill to nix the plan. That should delay any change at least until 2017. It’s hard to imagine anyone getting elected president on a platform of putting the Internet at risk. Whatever the Administration’s motivations, its officials should be happy that they now cannot deliver on their plan. They can assure other governments they had been looking forward to ending the US role over the Internet, if only Congress hadn’t interfered.

And President Obama should be grateful that despite his best efforts, he no longer risks becoming known as the president who lost the Internet.

US network neutrality campaign enables foreign governments' Internet control

[Commentary] The International Telecommunications Union dates back to 865, when it was established as the International Telegraph Union to coordinate the delivery of telegraphs among nations. Whether 'telegraph' or 'telecommunications,' ITU's mandate was never to cover the Internet. What the ITU regulates, by the very terms of its operative agreement, is "telecommunications," and the agreement recognizes the right of each country to regulate telecommunications as it sees fit. So there is more than a little irony in the fact that President Barack Obama is asking the Federal Communications Commission to classify Internet services as regulated telecommunications services (which they are not now) and the FCC's chairman, Tom Wheeler, appears prepared to go along with the presidential direction. The FCC’s action will make it more likely that other countries will succeed in their quest to put Internet governance under government control.

[May is president of the Free State Foundation]

Judge: It’s OK for cops to create fake Instagram accounts

United States District Judge William Martini has signed off on the practice of law enforcement using a fake Instagram account in order to become "friends" with a suspect -- thus obtaining photos and other information that a person posts to their account.

"No search warrant is required for the consensual sharing of this type of information," he wrote. "[Defendant Daniel] Gatson’s motion to suppress the evidence obtained through the undercover account will be denied." The criminal case, known as United States v. Daniel Gatson, involves a man accused of perpetrating a long series of burglaries (taking primarily jewelry worth over $3 million in total) in New Jersey and neighboring regions. Gatson, representing himself in the case, had attempted to have the data collected from Instagram thrown out as he claimed there was no probable cause to search or seize such data.

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