February 2015

Net neutrality: A lobbying bonanza

Whether you view network neutrality rules as a government takeover of the Internet or the only way to save the Web from corporate meddling, one thing is certain: The issue has been a boon to Washington lobbyists, lawyers and activists -- and they’re poised to continue cashing in for years to come.

The fierce debate has proven to be a prime business opportunity for K Street, as some of the biggest US companies and their trade groups try to sway opinion at the agency and on Capitol Hill. Lawmakers and consumer groups also have seized on the issue -- and the passion it evokes -- to drum up cash and support.

“Every time we’ve had something like this before, whether it’s in telecom or banking or health care, it becomes a lobbying and fundraising extravaganza, and net neutrality is no different,” said Bill Allison, senior fellow at the Sunlight Foundation. “When Congress gets going, that’s when you’re going to see the fundraisers … off specific issues like this.”

Major Internet service providers AT&T, Comcast and Verizon have spent a combined $44.2 million to lobby Washington on a host of issues in 2014, with net neutrality among their top agenda items, according to company disclosures. Executives like AT&T CEO Randall Stephenson, Comcast CEO Brian Roberts and Verizon CEO Lowell McAdam have personally met with FCC Chairman Tom Wheeler to press their views. Silicon Valley giants like Google and Facebook have backed strong net neutrality rules, primarily via their trade group, the Internet Association. But the debate has also drawn in fresh-faced tech players like Wordpress.com operator Automattic, crafts website Etsy and funding platform Kickstarter. The firms have taken an active role, working closely with groups like Engine Advocacy to press the case for robust open Internet protections in Washington.

From Internet to Obamanet

[Commentary] Critics of President Obama’s “net neutrality” plan call it ObamaCare for the Internet. That’s unfair to ObamaCare.

Both ObamaCare and “Obamanet” submit huge industries to complex regulations. Their supporters say the new rules had to be passed before anyone could read them. But at least ObamaCare claimed it would solve long-standing problems. Obamanet promises to fix an Internet that isn’t broken. Utility regulation was designed to maintain the status quo, and it succeeds. This is why the railroads, Ma Bell and the local water monopoly were never known for innovation. The Internet was different because its technologies, business models and creativity were permissionless. Obama’s bureaucrats will give him the regulated Internet he demands. Unless Congress or the courts block Obamanet, it will be the end of the Internet as we know it.

Document Reveals Growth of Cyberwarfare Between the US and Iran

A newly disclosed National Security Agency document illustrates the striking acceleration of the use of cyberweapons by the United States and Iran against each other, both for spying and sabotage, even as Secretary of State John Kerry and his Iranian counterpart met in Geneva to try to break a stalemate in the talks over Iran’s disputed nuclear program.

The document, which was written in April 2013 for Gen. Keith B. Alexander, then the director of the National Security Agency, described how Iranian officials had discovered new evidence the year before that the United States was preparing computer surveillance or cyberattacks on their networks. It detailed how the United States and Britain had worked together to contain the damage from “Iran’s discovery of computer network exploitation tools” -- the building blocks of cyberweapons. That was more than two years after the Stuxnet worm attack by the United States and Israel severely damaged the computer networks at Tehran’s nuclear enrichment plant. The document acknowledged that its attacks on Iran’s nuclear infrastructure, a George W. Bush administration program, kicked off the cycle of retaliation and escalation that has come to mark the computer competition between the United States and Iran.

Sony, US Agencies Fumbled After Cyberattack

The Sony cyberattack, which occurred in November 2014, laid bare not just weaknesses in corporate Internet security but major shortcomings in how the government and companies work together to respond to attacks.

Federal officials have cited the Sony hack as the reason they are changing how the government responds to computer breaches. A review of the Sony hack, based on interviews with executives, US officials and people briefed on their conversations, shows that the companies and agencies fighting the hackers hewed so closely to their own interests that some decisions were made based on little information or consultation.

AT&T Says Dish’s Tactics Distorted Spectrum Auction

AT&T said rival Dish Network skewed prices and distorted the results of the record US sale of wireless licenses, and it called on the Federal Communications Commission to closely examine the satellite broadcaster’s behavior.

The comments by AT&T regulatory executive Joan Marsh came after an FCC auction that drew $45 billion in bids, more than double the amount analysts expected. AT&T won $18.2 billion of licenses, and Verizon Communications won $10.4 billion of them. Dish was a surprise second-place finisher with $13.3 billion in winning bids. It also qualified for $3.3 billion in small-business discounts through a strategy that involved the coordinated bidding of three entities in the anonymous auction. AT&T said that the strategy created a misleading impression of actual demand for licenses and pushed up their price. AT&T said the FCC should prevent similar strategies from being used during a much-anticipated auction of broadcasters’ spectrum slated for 2016.

Women are leaving the tech industry in droves

There’s a huge problem for the tech economy. According to the industry group Code.org, computing jobs will more than double by 2020, to 1.4 million. If women continue to leave the field, an already dire shortage of qualified tech workers will grow worse.

Google, Facebook, Apple and other big tech companies released figures showing that men outnumbered women 4 to 1 or more in their technical sectors. It's why the industry is so eager to hire women and minorities. For decades tech companies have relied on a workforce of whites and Asians, most of them men. Plenty of programs now encourage girls and minorities to embrace technology at a young age. But amid all the publicity for those efforts, one truth is little discussed: Qualified women are leaving the tech industry in droves. Women in tech say filling the pipeline of talent won't do much good if women keep quitting -- it's like trying to fill a leaking bucket.

Can the Senate’s new Republicans usher in NSA surveillance reform?

After the Snowden leaks, many wannabe Republican senators made National Security Agency reform a campaign platform. Now that they're in the Senate, privacy advocates hope they'll stay true to their commitment for curbing surveillance and add momentum to a reform bill.

Your opinion matters. The Benton Foundation needs your feedback.

Dear Reader,

The Benton Foundation will be redesigning our Information Services and website* for our 35th Anniversary in 2016.

To help kick off this process, we need you to take 5 minutes now to complete this survey. We are collecting this information solely** to better develop our offerings and respond to your needs.

Thank you for your time,

Kevin Taglang
Executive Editor

*Benton's Information Services are offered through our site (Benton.org) our e-mailed daily newsletter (Headlines), our e-mailed weekly article highlighting important developments in communications policy (Weekly Round-Up), and through original opinion and analysis (Digital Beat blog).

**We will not rent, sell, or give the information you provide to anyone else.

Top Aide to FCC Commissioner Pai Says Press Release Was Blocked (It wasn't)

Matthew Berry, Chief of Staff to Commissioner Ajit Pai of the Federal Communications Commission, took to Twitter to suggest "FCC leadership" was attempting to prevent the Commissioner from posting a press release excerpting critics of network neutrality regulation. Asked what Berry meant by a Feb. 18 tweet saying "FCC leadership now trying to block Commissioner Pai's press releases from FCC website. So much for Open Internet!," Berry said that the FCC's Office of Media Relations "told us that the Office of General Counsel had directed that our statement be removed from the website."

FCC spokeswoman Kim Hart suggested that, rather than "blocking," the FCC was "clarifying."“The FCC’s Office of Media Relations serves the entire agency -- including all Commissioners," she said in a statement. "In this specific incident, OMR promptly posted a release from Commissioner Pai to the website as received, according to standard practice. Once the release was live, it became apparent that the release, as crafted, appeared to represent that it was from the entire Commission, not just Commissioner Pai. Commissioner Pai’s office agreed to clarify the release, and OMR worked to post the replacement as quickly as possible.”