December 2014

GOVERNMENT AND COMMUNICATIONS

OBAMA RENEWS NSA SPYING PROGRAM AFTER REFORM BILL FAILS
[SOURCE: The Hill, AUTHOR: Julian Hattem]
The Obama Administration has renewed a controversial spying program that would have been ended under legislation that was blocked by a Senate filibuster. The move came amid opposition from critics of the National Security Agency’s program; they have urged President Barack Obama to abandon the controversial phone records program on his own, since the reform bill failed in Congress.
benton.org/headlines/president-obama-renews-nsa-spying-program-after-reform-bill-fails | Hill, The
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NATIONAL SECURITY AGENCY DATA PROGRAM BACK IN FEDERAL COURT
[SOURCE: The Hill, AUTHOR: Mario Trujillo]
The government's bulk collection of Americans’ call records was brought before a US appeals court for the third time in as many months. At least one member of the three-judge panel of the Ninth Circuit Court of Appeals in Seattle (WA) questioned the standing in Smith v. Obama. "The injury is in the collection of the data, your honor," said Peter Smith, husband and attorney to the plaintiff, Anna Smith, a neonatal nurse who brought the suit against the government following the disclosure that the National Security Agency was collecting phone metadata on millions of customers. The appeal comes after a lower court ruled that the collection did not violate the Fourth Amendment.
benton.org/headlines/national-security-agency-data-program-back-federal-court | Hill, The
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INTERNET/BROADBAND

WHEELER, OBAMA AND NETWORK NEUTRALITY
[SOURCE: The Hill, AUTHOR: Julian Hattem]
Federal Communications Commission Chairman Tom Wheeler is under pressure from President Barack Obama to issue the strongest possible network neutrality rules despite the vehement objections of industry groups and Republicans on Capitol Hill. But “going big” with the rules would be hugely controversial, likely drawing accusations that Chairman Wheeler is playing politics with the work of an independent agency. Chairman Wheeler has repeatedly defended the independence of the agency and insisted that it is not beholden to the executive branch. The image of independence is critical for Chairman Wheeler, given his close ties to the President. The chairman and his wife, Carol, spent six weeks knocking on doors and making phone calls for then-Sen Obama in Iowa ahead of the 2008 election, a time Wheeler once said will “rank right up there as the best six weeks of my life.” He also raised hundreds of thousands of dollars for Obama’s campaign and served on his presidential transition team after the 2008 race. Many FCC observers doubt the policy spat has caused a rift between the two men. Even in laying down the line, President Obama signaled he did not intend to leave Chairman Wheeler out in the cold. Before the announcement, President Obama dispatched National Economic Council Director Jeff Zients to the FCC to give Chairman Wheeler and FCC general counsel Jonathan Sallet a heads up.
benton.org/headlines/vise-tightens-fcc-chairman-fight-over-internet-rules | Hill, The
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DON'T DESTROY THE OPEN INTERNET
[SOURCE: CNN, AUTHOR: Sen Cory Booker (D-NJ), Sen Angus King (I-ME)]
[Commentary] There are now no enforceable rules to ensure small businesses, nonprofits and individuals can continue to access online content without fear of discriminatory practices or content blocking by Internet service providers who own the information pipelines. Indeed, without new rules, service providers could create fast lanes, impose new fees, and even block certain content and promote other content to bolster their bottom line. The Federal Communications Commission can pass rules that prevent toll booths, content blocking and discrimination by simply reclassifying broadband as a common carrier service under Title II of the Communications Act. Any approach that stops short of reclassifying broadband under Title II will not allow the FCC to adopt the rules we need today to protect customers and businesses, and will result in high social and economic costs. We urge the FCC to act quickly to implement fair rules of the road that protect businesses and consumers and preserve the power of the open Internet.
benton.org/headlines/dont-destroy-open-internet | CNN
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THE FCC AND THE US PHONE TRANSITION PART II
[SOURCE: Benton Foundation, AUTHOR: Kevin Taglang]
[Commentary] In part I of this article, we looked at the Federal Communications Commission's fast start under Chairman Tom Wheeler to address the transition of the phone system from traditional, landline service over copper wires to a broadband- and wireless-based system. With other issues pressing for attention at the FCC, momentum slowed during the summer of 2014. As we noted in Part I, Tom Wheeler had a sense of the huge agenda the FCC faced even before his confirmation. In addition to the telephone transition, the FCC was charged with fashioning an auction that would incentivize television broadcasters to sell spectrum -- the first regulatory body to attempt that. The FCC would also have to continue work to promote universal access to broadband and diversify media ownership. A funny thing happened on the way to the (telecommunications) forum, however. On January 14, the United States Court of Appeals for the District of Columbia Circuit struck down key elements of the FCC’s Open Internet rules (commonly known as net or network neutrality) which required broadband providers to treat all Internet traffic equally. During his confirmation process, Wheeler had also vowed to protect the open Internet. So he now had a new, major undertaking. Then, on February 13, Comcast announced it had entered into an agreement to buy Time Warner Cable for approximately $45 billion. The FCC would have to determine if the transaction is in the public interest. That announcement was followed by AT&T's agreement to buy DirecTV for about $48 billion. That transaction would also require FCC review. The momentum on the telephone transition, to say the least, was interrupted.
http://benton.org/blog/year-review-fcc-and-us-phone-transition-part-ii
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TAX THE INTERNET DAY
[SOURCE: Wall Street Journal, AUTHOR: Editorial staff]
[Commentary] The National Conference of State Legislatures is in Washington demanding more power to impose tax collections on the Internet. More than 200 state politicians are expected to put the squeeze on their federal counterparts to rewrite the rules of interstate commerce to allow higher online sales tax collections.
benton.org/headlines/december-10-tax-internet-day | Wall Street Journal
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AMERICANS FEEL BETTER INFORMED THANKS TO THE INTERNET
[SOURCE: Pew Internet and American Life Project, AUTHOR: Kristen Purcell, Lee Rainie]
Rather than crushing them with too much information and making it hard to find useful material, most Americans say the Internet and cell phones have brought benefits in learning, sharing and diversifying the flow of information into their lives. A new survey by the Pew Research Center finds that the vast majority of Americans believe their use of the web helps them learn new things, stay better informed on topics that matter to them, and increases their capacity to share ideas and creations with others. Most believe that average Americans and US students are better informed than in the past.
benton.org/headlines/americans-feel-better-informed-thanks-internet | Pew Internet and American Life Project | About the Survey
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OWNERSHIP

BLOWS AGAINST THE EMPIRE
[SOURCE: Medium, AUTHOR: Susan Crawford]
[Commentary] Years ago, Comcast and Time Warner Cable and their brethren carried out a series of swaps and deals aimed at dividing up the country’s cable subscribers. With Comcast's proposed merger with Time Warner Cable, we'll reach an unwelcome tipping point: if the Federal Communications Commission and Congress don't stop the merger, the combined company will, on its own, control 50 percent of the Internet access market for speeds over 25 Mbps. Now that the government has been through the learning process of the NBCU merger, it understands that the hidden grinding power of Comcast is deeply related to its size. When one company can decide at its leisure -- under no pressure from either competition or oversight -- how, when, and why particular information reaches more than half of American households, at what price, we've got a problem. Maybe someday we'll develop the industrial policy that will get the nation the upgrade to fiber and the ubiquitous, cheap connectivity we need to compete on the global stage. Until then, it's good to hear the other side of the Comcast discussion speaking with one voice. If the government doesn't listen, they'll be setting a new standard for tone-deafness.
[Crawford is the John A. Reilly Visiting Professor in Intellectual Property at the Harvard Law School]
benton.org/headlines/blows-against-empire | Medium
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ANALYSTS: DISH WILL HAVE LEVERAGE OVER VERIZON, AT&T IF IT SCORES PAIRED AWS-3 SPECTRUM
[SOURCE: Fierce, AUTHOR: Phil Goldstein]
With bidding in the AWS-3 spectrum auction winding down, financial analysts think Dish Network is likely going to walk away as a major winner, especially if it can secure paired spectrum licenses in major markets. According to a research note from analysts at New Street Research, that would give Dish leverage over Verizon Wireless and AT&T Mobility, which have likely spent big at the auction. "The best case for the carriers is that they win all of the spectrum. If Dish does win a number of licenses in key markets, the carriers will be in a tough spot strategically."
benton.org/headlines/analysts-dish-will-have-leverage-over-verizon-att-if-it-scores-paired-aws-3-spectrum | Fierce
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SPECTRUM/WIRELESS

VERIZON'S 57 MBPS DOWNLOAD SPEEDS BEAT ALL MAJOR WIRELESS CARRIERS
[SOURCE: ars technica, AUTHOR: Jon Brodkin]
RootMetrics divided the US into eight geographic regions, measured the maximum downlink speed offered by carriers in each one, and then created a nationwide ranking using a population-weighted average of those regional maximums. Verizon led the way with a speed of 57.21Mbps, while T-Mobile came in second at 42.63Mbps. AT&T nearly tied T-Mobile with 42.39Mbps, and Sprint lagged far behind at 22.23Mbps. Maximum downlink speeds were generally more than double maximum uplink speeds.
benton.org/headlines/verizons-57mbps-download-speeds-beat-all-major-wireless-carriers | Ars Technica
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DIVERSITY

VENTURE CAPITAL TAKES A STEP IN THE RIGHT DIRECTION ON DIVERSITY
[SOURCE: Washington Post, AUTHOR: Vivek Wadhwa]
[Commentary] The National Venture Capital Association (NVCA) announced the formation of a task force to help its members increase opportunities for women and minorities. On the surface, this looks like just another news release by an industry under fire; but I think there is much more to it. The NVCA is providing true leadership and challenging its members to clean up their act. NVCA chief executive Bobby Franklin said improving diversity in gender and race was a personal mission for him because it would improve the innovation, productivity, and performance of the companies that the venture community invested in -- and better the overall economy. He agreed that VC firms should be proactive in correcting their gender imbalance and disclosing diversity data, and promised to work towards making this happen.
[Vivek Wadhwa is a fellow at Rock Center for Corporate Governance at Stanford University]
benton.org/headlines/venture-capital-takes-step-right-direction-diversity | Washington Post
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HEALTH

NEW FEDERAL HEALTH IT STRATEGIC PLAN SETS STAGE FOR BETTER SHARING THROUGH INTEROPERABILITY
[SOURCE: Department of Health and Human Services , AUTHOR: Press release]
Following collaboration with more than 35 federal agencies, the Department of Health and Human Services’ Office of the National Coordinator for Health Information Technology (ONC) issued the Federal Health IT Strategic Plan 2015-2020. The Strategic Plan represents a coordinated and focused effort to appropriately collect, share, and use interoperable health information to improve health care, individual, community and public health, and advance research across the federal government and in collaboration with private industry. The Strategic Plan, which is open for comments, serves as the broad federal strategy setting the context and framing the Nationwide Interoperability Roadmap that will be released in early 2015. The Nationwide Interoperability Roadmap will help to define the implementation of how the federal government and private sector will approach sharing health information.
benton.org/headlines/new-federal-health-it-strategic-plan-sets-stage-better-sharing-through-interoperability | Department of Health and Human Services | see the plan
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ELECTIONS AND MEDIA

TECH SUMMIT
[SOURCE: Politico, AUTHOR: Kenneth Vogel, Darren Samuelsohn]
The Republican Party’s top operatives -- including strategists representing the Koch brothers’ political operation and several leading prospective 2016 presidential candidates -- huddled behind closed doors to discuss how to synchronize their sometimes competing tech efforts. The all-day meeting attracted about 40 of the right’s biggest names in tech and strategy -- including Koch operatives Michael Palmer and Marc Short, leading strategists from many of the major super PACs and all of the party committees, as well as close allies of Jeb Bush, Sen Ted Cruz (R-TX), Gov Rick Perry (R-TX) and Gov Scott Walker (R-WI). The session was at least partly intended to quash a rivalry simmering in the right’s tech ranks. Some party operatives worry that the competition between would be data-wizards could emerge as a problem for Republicans, since Democrats under President Barack Obama have coordinated their technology efforts relatively closely.
benton.org/headlines/secret-gop-tech-summit-plot-2016 | Politico
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STORIES FROM ABROAD

GERMAN CHANCELLOR ANGELA MERKEL SPEAKS OUT AGAINST NETWORK NEUTRALITY
[SOURCE: The Local , AUTHOR: Sabine Devins ]
German Chancellor Angela Merkel said that some key services for the digital economy would require reliable transmission quality and should therefore be treated differently than other data. She called for a splitting of services, "one for free Internet, and the other for special services", adding that it was up to the European Union to negotiate how it would work. "An innovation-friendly Internet means that there is a guaranteed reliability for special services," she said. "These can only develop when predictable quality standards are available".
benton.org/headlines/german-chancellor-angela-merkel-speaks-out-against-network-neutrality | Local, The
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PROPOSAL UNDER ATTACK
[SOURCE: New York Times, AUTHOR: Editorial staff]
[Commentary] The European Parliament voted for strong rules that would prevent telecommunications companies from creating fast and slow lanes on the Internet. But that measure is now facing significant opposition from some leaders like Chancellor Angela Merkel of Germany who want Europe to water down the rules to benefit big telephone companies. Chancellor Merkel said telecommunications companies should be allowed to divide Internet access into two tiers, one for “special services” like telemedicine and self-driving cars and one for everything else. Chancellor Merkel said her proposal would encourage innovation by providing more reliable and secure service to applications that require it while guaranteeing that all other Internet traffic is treated equally by telecom companies. There are major problems with that approach. Tempting as lawmakers might find it to support their national broadband companies, Europe should reject proposals that would undermine the openness of the Internet.
benton.org/headlines/european-internet-proposal-under-attack | New York Times
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Analysis

December 2014

December 9, 2014 (Obama renews NSA spying program)

A Year in Review: The FCC and the US Phone Transition (Part II)

Vise tightens on FCC chairman in fight over Internet rules

Time Warner Cable Sees ‘No Real Issues’ in Comcast Deal Review

December 10 Is Tax-the-Internet Day

White House Cyber Chief on the State of Cybersecurity in the US

Research Confirms the Crowd: Netflix and Others Are Upending the TV Business

US telecoms price war takes a toll on profits

The secret GOP tech summit to plot 2016

European Internet Proposal Under Attack