February 2015

INTERNET/BROADBAND

AS REPUBLICANS CONCEDE, FCC IS EXPECTED TO ENFORCE NET NEUTRALITY
[SOURCE: New York Times, AUTHOR: Jonathan Weisman]
Senior Republicans conceded that the grueling fight with President Obama over the regulation of Internet service appears over, with the president and an army of Internet activists victorious. In the battle over so-called network neutrality, a swarm of small players, from Tumblr to Etsy, BoingBoing to Reddit, has overwhelmed the giants of the tech world, Comcast, Verizon and Time Warner Cable, with a new brand of corporate activism -- New World versus Old. The biggest players on the Internet, Amazon and Google, have stayed in the background, while smaller players -- some household names like Twitter and Netflix, others far more obscure, like Chess.com and Urban Dictionary -- have mobilized a grass-roots crusade. Republicans who had branded net neutrality “Obamacare for the Internet” have grown much quieter under the barrage. “Tech companies would be better served to work with Congress on clear rules for the road. The thing that they’re buying into right now is a lot of legal uncertainty,” said Senate Commerce Committee John Thune (R-SD), who warned that the Federal Communications Commission’s new rule would face litigation from opponents and a possible reversal from a future, more Republican FCC “I’m not sure exactly what their thinking is.”
benton.org/headlines/republicans-concede-fcc-expected-enforce-net-neutrality | New York Times
Share: Twitter | Facebook
back to top

SEN THUNE'S PLAN; GIVE ON NET NEUTRALITY, BUT PUT STRICTER LIMITS ON FCC
[SOURCE: National Journal, AUTHOR: Brendan Sasso]
Senate Commerce Committee Chairman John Thune (R-SD) has a strategy for stopping federal regulators from seizing broad powers over the Internet: Give them what they want. Chairman Thune is working on legislation that would direct the Federal Communications Commission to protect network neutrality. But the proposal comes with strings attached -- Chairman Thune and other Republicans want to use a net neutrality bill to curb the FCC's overall power to regulate the Internet. "Congress … is the only entity that can settle this issue with true certainty," Chairman Thune said in a speech at Reboot Congress, a libertarian technology conference. "And we can do so in a way that will empower the FCC with the strong tools many believe are needed to protect the Internet while simultaneously ensuring the agency is appropriately limited in its reach and authority."
benton.org/headlines/sen-thunes-plan-give-net-neutrality-put-stricter-limits-fcc | National Journal | MultichannelNews
Share: Twitter | Facebook
back to top

FCC COMMISSIONER SEEKS BALANCE BETWEEN STRONG NET NEUTRALITY RULES, "CLARITY" FOR INVESTORS
[SOURCE: The Hill, AUTHOR: Julian Hattem]
Commissioner Mignon Clyburn of the Federal Communications Commission has asked FCC Chairman Tom Wheeler to eliminate from new network neutrality rules a new legal category of “broadband subscriber access services,” which was created as an additional point of legal authority for the FCC to monitor the ways that companies hand off traffic on the back end of the Internet. Those deals, known as “interconnection” arrangements, became a point of contention when Netflix accused Comcast and other companies of erecting “Internet tolls” before easily passing Web traffic from one network to another. The initial plan sought by Chairman Wheeler would allow the FCC to investigate and take action against deals that are “not just and reasonable,” according to a fact sheet released by the FCC. Eliminating the new legal category could make it trickier for the FCC to police those arrangements, said the FCC officials. Other FCC officials have previously said that the broader act of reclassifying broadband Internet service would, in and of itself, give the commission enough powers to oversee interconnection deals. Clyburn’s changes also would replace a new standard for Internet service providers’ conduct, which was meant to act as a catchall rule for any future behavior that might abuse consumers. That standard would be swapped out with potentially narrower language from 2010 net neutrality rules that prevented “unreasonable discrimination.” In a speech at the Federal Communications Bar Association, Commissioner Clyburn said that she was “pleased” with the initial draft but also hinted that she might need some fixes to strike that balance between “strong” protections for consumers and “clarity” for investors. “Some have expressed concerns about allowing private rights of action in court, failing to consider the impact on smaller [Internet service providers], that including interconnection goes too far or that the case-by-case approach does not go far enough and that the new conduct rule may not be as strong as the previous unreasonable discrimination rule,” she said.
benton.org/headlines/fcc-commissioner-seeks-balance-between-strong-net-neutrality-rules-clarity-investors | Hill, The
Share: Twitter | Facebook
back to top

SO THEY'RE VOTING ON NETWORK NEUTRALITY, BUT WHAT HAPPENS NEXT?
[SOURCE: Benton Foundation, AUTHOR:]
[Commentary] It is doubtful that anyone reading this post doesn’t know that, barring an inch or two of snow (which is generally enough to shut down Washington, DC), on Thursday, February 26, the Federal Communications Commission will finally vote to reclassify broadband under Title II of the Communications Act and adopt strong Network Neutrality rules covering both wired and wireless Internet service providers (ISPs). That vote will mark the end of a long debate, but it is only the start of what will be a multi-pronged fight over whether the FCC could, or should, have done what it is about to do. This is a necessarily oversimplified guide to what happens next.
benton.org/headlines/so-theyre-voting-network-neutrality-what-happens-next | Benton Foundation
Share: Twitter | Facebook
back to top

JOSTLING BEGINS
[SOURCE: Wall Street Journal, AUTHOR: Brody Mullins, Gautham Nagesh]
Times have changed. Google has grown. And strong network neutrality rules are now no longer a top company priority. They could even be a hindrance. Officially, Google hasn’t taken a formal position on the president’s net neutrality proposal. Google’s straddling of the issue is one of many changes in Silicon Valley over the years on net neutrality. In the fast-moving tech industry, companies are constantly changing and evolving. As a result, some of the companies that once sought strong net neutrality rules, no longer see such rules as essential to their businesses. The ever-evolving battle lines in the industry mean that a Federal Communications Commission vote on final rules won't be the end of the debate. Instead, it will trigger a whole range of skirmishes among the various tech factions about what should be regulated and how as each lobbies for favorable interpretations of the rules. The jostling has already begun. “Many of the tech giants—the Googles and Ciscos of the world—don’t have the same vested interest in net neutrality that they did the first time around,” said Don Goldberg, a partner at Bluetext who has been involved in the net neutrality debate for nearly a decade. “They’ve grown up into established mega-corporations, and because of their size, resources, and clout, they don’t face the same threats that they once did,” he said.
benton.org/headlines/jostling-begins-fccs-net-neutrality-vote-nears | Wall Street Journal
Share: Twitter | Facebook
back to top

OPEN INTERNET AND CONGRESS
[SOURCE: Tales of the Sausage Factory, AUTHOR: Harold Feld]
[Commentary] Feb 25 is my birthday. Happy birthday to me. Tomorrow, the Federal Communications Commission will vote on whether or not to classify broadband as a Title II service and adopt strong rules for network neutrality. Or, in other words, the FCC is getting me an open Internet for my birthday, which is the best . . . birthday . . . present . . . EVAR!! But before we get to celebrate, we need to blow past the last symbolic push by Republicans in Congress to take a hyperpartisan swipe at “Obamacare for the Internet.” So tune in to the hearing at the House Commerce Committee at 10:30 a.m. and please BE SURE TO CALL YOUR CONGRESSCRITTER and tell him or her that (a) we need an open Internet protected by Title II; and, (b) Harold wants an open Internet protected by Title II for his birthday and they are mean party poopers who hate America.
benton.org/headlines/fcc-gonna-give-me-open-internet-my-birthday-tell-congress-not-be-party-poopers | Tales of the Sausage Factory
Share: Twitter | Facebook
back to top

HOW THE FCC COULD USE AN OBSCURE INTERNET POWER TO CHANGE THE PAY-TV MARKET
[SOURCE: Washington Post, AUTHOR: Brian Fung]
On Feb 26, the Federal Communications Commission will vote on the government's strict new network neutrality rules for Internet providers. And while the proposed regulations are mainly focused on whether companies like Comcast can block or slow Web sites, a small piece of the rules could give the government wider authority over television programming -- and by extension, your TV experience. Here's how. The FCC has a mission: To promote the rapid deployment of high-speed Internet. Under this mission, codified in Section 706 of the Communications Act, it's seen fit to knock down what it sees as barriers to the rollout of broadband. Some Washington lobbyists are beginning to argue that this mission doesn't just cover the Internet. Advocates for pay-TV providers are saying the FCC should use Section 706 to act more aggressively against the companies that produce TV content. Why? Because the pay-TV providers think the content producers are charging them too much for programming -- and because programming costs eat into the budget for building, say, cable broadband, what hurts pay-TV providers could hurt the spread of broadband. If the FCC someday decides that yes, the cost of TV programming is hurting the rollout of broadband, it's not that big a leap to regulatory action. Those actions could have powerful implications for what you pay your cable provider, among other things.
benton.org/headlines/how-fcc-could-use-obscure-internet-power-change-pay-tv-market | Washington Post
Share: Twitter | Facebook
back to top

DON'T LIMIT HIGH-SPEED BROADBAND TO BIG CITIES
[SOURCE: The Tennessean, AUTHOR: State Sen Janice Bowling (R-Tullahoma)]
[Commentary] Internet service providers are stepping up their game, building the infrastructure necessary to provide high-speed Internet services in communities across the country. This is great, especially for big cities that have the incentives (read: population) needed to encourage private providers to upgrade broadband networks and provide customers with an essential utility of the 21st century. But it doesn’t work out so well for rural towns and small communities. Because of population size and infrastructure limitations, many residents are subjected to slow, out-of-date services or are left without access to commercial providers altogether. With high-speed broadband playing a larger and larger role in growing a community’s economy and improving its residents’ ways of life, this is neither acceptable nor fair. The Federal Communications Commission is about to help rural towns and small communities reach their full potential by letting their residents have the choice of access to high-speed, affordable broadband. This is a welcome step. But there is more to be done. As a senator representing seven rural counties and a resident of a small community myself, I am speaking out for all of those who are being held hostage to 20th-century technology. Let us grow our economies, improve our governments’ performance and create jobs for our communities. Let us have Internet choice(s).
[Republican State Sen Janice Bowling represents the 16th District of Tennessee in the General Assembly]
benton.org/headlines/dont-limit-high-speed-broadband-big-cities | Tennessean, The
Share: Twitter | Facebook
back to top

WHEELER’S OTHER TAKEOVER
[SOURCE: Wall Street Journal, AUTHOR: Editorial staff]
[Commentary] Federal Communications Commission Chairman Tom Wheeler plans to seize regulatory control over the Internet by declaring private broadband carriers to be public utilities. Less well known is that he also wants to usurp state authority to regulate municipal broadband networks. Local governments are forever seeking opportunities to diversify their, er, investments in sports stadiums, convention centers and such. Many lately have been getting into broadband. Municipalities have built some 180 fiber-optic networks in addition to about 75 cable services. Most operate as de facto public utilities with an implicit, if not explicit, taxpayer backstop. Rather than driving competition, municipal broadband can undercut the private market. Because they benefit from public financing and right-of-way, munis can price services below private carriers. And taxpayers and in some cases electric-utility ratepayers on the hook if the ventures go belly up. Chairman Wheeler may figure that liberal ends justify illiberal means, but he is threatening serious damage to the federal system and local self-government.
benton.org/headlines/tom-wheelers-other-web-takeover | Wall Street Journal
Share: Twitter | Facebook
back to top

WHAT COMCAST'S HUGE PROFITS TELL US ABOUT THE STATE OF THE BROADBAND INDUSTRY
[SOURCE: Vox, AUTHOR: Timothy Lee]
A common argument against network neutrality regulations is that restricting how broadband providers run their networks -- for example, by prohibiting them from charging certain content providers extra to put their content in "fast lanes" while everyone else's content gets stuck in the slow lane -- is that this kind of regulation will make it too difficult for network providers to recoup their investments in broadband infrastructure. So it's interesting to look at the 2014 financial results from the nation's largest broadband provider, Comcast. Comcast's cable division had operating cash flow (revenues minus operating expenses) of $18 billion. I think we can draw two lessons from Comcast's financial results. First, we're nowhere close to the point where increased regulations will make it unprofitable to own and operate broadband networks. Critics have warned that strong network neutrality regulations will reduce the incentive to invest in broadband networks, and they probably will. But even if they're right, it's likely that running a broadband network will continue to be a highly profitable activity. Second, Comcast's high profits are evidence of high barriers to entry in the broadband industry. Ordinarily, a company that consistently made billions of dollars in profits would attract new competitors seeking to capture a piece of the market.
benton.org/headlines/what-comcasts-huge-profits-tell-us-about-state-broadband-industry | Vox
Share: Twitter | Facebook
back to top

OWNERSHIP

LAWSUIT ACCUSES COMCAST, AL SHARPTON OF DISCRIMINATING AGAINST BLACK-OWNED MEDIA
[SOURCE: Washington Post, AUTHOR: Sarah Kaplan]
A lawsuit against Comcast, Time Warner Cable, Rev. Al Sharpton and the NAACP alleges that the media companies discriminated against black-owned businesses and paid activists like Sharpton to “whitewash” its practices. The complaint alleges that Comcast gave large donations to Sharpton, the NAACP and other civil rights groups to make it appear that the cable company was promoting diversity, even while it was failing to follow through on a promise to do so. The lawsuit, seeking $20 billion, was filed in Los Angeles federal court by Entertainment Studios, a television company founded by black producer and comedian Byron Allen and the National Association of African-American Owned Media (NAAAOM). The complaint, which comes as regulators mull a $45-billion merger between Comcast and TWC, alleges that Comcast has refused to do business with Allen and other black media executives. “Comcast has engaged in, and is engaging in, pernicious, intentional racial discrimination in contracting,” it reads. Whether or not it gets anywhere is another question. Both Sharpton and Comcast dismissed the allegations. Sharpton called the lawsuit a “bogus statement from a person who has no credibility” and said that he will be bringing counterclaims for defamation.
benton.org/headlines/lawsuit-accuses-comcast-al-sharpton-discriminating-against-black-owned-media | Washington Post
Share: Twitter | Facebook
back to top

TELECOM

VERIZON WILL FIX YOUR LANDLINE IN A MONTH -- OR GIVE YOU WIRELESS RIGHT NOW
[SOURCE: ars technica, AUTHOR: Jon Brodkin]
Verizon's aging copper landline telephone network has been offline for numerous customers in Manhattan (NY) over the past few weeks, giving Verizon another chance to convince customers to ditch their landlines for wireless service. This has been a recurring theme for Verizon, which often tells customers their phone lines can't be fixed right away but that they can switch to "Voice Link," a wireless replacement for landlines. Voice Link isn't regulated as a utility like the copper landlines are, and it can't last through power outages the way copper lines can. In other cases, Verizon has pushed Voice Link as a permanent replacement for landlines. Customers who decline Voice Link as a permanent replacement generally do so because of concerns about wireless quality and reliability, plus its reliance on battery backup. Copper lines can keep working during power outages by drawing power from the central office, but of course the copper lines themselves are vulnerable to weather. Verizon argues that Voice Link is reliable, saying, "Voice Link connects to the home’s power, but the units can work on standard, easily replaceable AA batteries in the event of a power outage...We feel that offering our customers a Voice Link unit is better than having no alternative for them."
benton.org/headlines/verizon-will-fix-your-landline-month-or-give-you-wireless-right-now | Ars Technica
Share: Twitter | Facebook
back to top

LOBBYING

TECH LOBBYING
[SOURCE: Washington Post, AUTHOR: Brian Fung]
The expected victory on network neutrality marks a key achievement for tech firms after a months-long campaign against some of the communications industry’s most sophisticated lobbying operations. And it holds major implications for the way consumers experience the Internet. If all goes as expected, the FCC will pass rules that would limit Internet providers from auctioning off the fastest download speeds to the highest bidders, all but ensuring that Web firms -- not a cable company -- will retain control of what consumers see on their browsers. It’s easy to point to the coming FCC’s vote as another indication Silicon Valley’s time has come in Washington. But here’s the reality: The industry has already arrived, and in a major way. Tech companies such as Google, Netflix and Facebook have amassed tremendous political power in recent years, with lobbying budgets to match. Now that power is evolving. Not content with simply settling into Washington, tech companies are increasingly clashing with more established interests. At the same time, their expanded role in policy battles is also revealing how “Silicon Valley” -- a buzzword once used as Washington shorthand for all technology firms -- is hardly as monolithic as the term implies.
benton.org/headlines/how-silicon-valley-won-day-over-some-most-powerful-lobbyists-washington | Washington Post
Share: Twitter | Facebook
back to top

FCC REFORM

FCC REPORTING ACT
[SOURCE: The Hill, AUTHOR: Cristina Marcos]
The House passed, 411-0, a measure to reduce the number of reports the Federal Communications Commission must submit to Congress every year. The Federal Communications Commission Consolidated Reporting Act (HR 734) would require the FCC to submit a biennial report to the House Commerce Committee about the status of the communications marketplace. It would replace eight separate reports into one single report. The reports would include assessments of competition in the marketplace, communications capabilities and whether any regulations limit market competitiveness.
benton.org/headlines/house-passes-bill-consolidate-fcc-reports | Hill, The
Share: Twitter | Facebook
back to top

POLICYMAKERS

SENATE COMMERCE COMMITTEE
[SOURCE: National Journal, AUTHOR: Fawn Johnson]
In a partisan climate that spells doom for the vast majority of issues, there are at least two policy arenas left where Republicans, Democrats, and the White House can plausibly come together on important legislation this year -- cybersecurity and infrastructure. It just so happens that the Senate Commerce Committee owns a piece of each issue, sharing turf with several powerful panels, and Chairman John Thune (R-SD) is intent on having his committee play a major role in both debates -- more so than it has in other recent high-profile fights. Chairman Thune is adopting the theatrical adage that there are no small parts, only small actors. "Part of it's being proactive. You can kind of sit back and let the game come to you, or you can try and create. I've always believed that offense wins games," Chairman Thune said. This is the new Commerce Committee, headed by a new chairman in Thune and a new Ranking Member in Sen. Bill Nelson (D-FL). Committee staffers like to say that they oversee oceans and space and everything in between. That's not far off, considering that they have worked on issues as diverse as domestic violence in professional sports, protections for passengers on tourist cruises, and exploding air bags. And then there's this little thing called the Internet. Yet over the past few years, the Commerce Committee was essentially a bit player in the biggest legislative developments.
benton.org/headlines/senate-commerce-committee-aims-flex-its-muscle-big-issues | National Journal
Share: Twitter | Facebook
back to top

SENATE COMMUNICATIONS SUBCOMMITTEE CHAIRMAN LOOKS FORWARD
[SOURCE: The Hill, AUTHOR: Julian Hattem]
Senate Communications Subcommittee Chairman Roger Wicker (R-MS) said that modernizing the Communications Act "would be one of the committee's top priorities" over the next two years. “With all the growth in the technology space, the question is a fresh look and what updates are needed to foster continued innovation and competition." Chairman Wicker also pointed to oversight of the FCC and said that he wanted to ensure the agency was doing all it could to promote broadband access in rural areas. He also said that he wanted to build on the progress of the FCC’s recent auction of AW-3 airwaves, which brought in nearly $45 billion to the federal government. “Our opinion is that the AWS-3 auction was not only successful, it was surprising successful,” he said. “We are hopeful that the incentive spectrum auction of lowband can be successful also,” Chairman Wicker added, referring to an even more complicated auction scheduled for 2016.
benton.org/headlines/senate-communications-subcommittee-chairman-looks-forward | Hill, The
Share: Twitter | Facebook
back to top

Benton

Search

Benton

Daily Digest

Analysis

February 2015

February 25, 2015 (As Republicans Concede, FCC Is Expected to Enforce Net Neutrality)

How Silicon Valley won the day over some of the most powerful lobbyists in Washington

The FCC Is Gonna Give Me An Open Internet For My Birthday!! Tell Congress Not To Be Party Poopers.

Jostling Begins as FCC’s Net Neutrality Vote Nears

Tom Wheeler’s Other Web Takeover

House passes bill to consolidate FCC reports

Hillary Rodham Clinton Talks NSA, Presidential Aspirations With Kara Swisher

So They're Voting On Network Neutrality, But What Happens Next?

As Republicans Concede, FCC Is Expected to Enforce Net Neutrality

The FCC’s Plan to Protect the Internet