February 2015

Hyping Mythical Internet Taxes, New York Times Legitimizes A Net Neutrality Study Long Debunked

The New York Times legitimized a discredited study from the Progressive Policy Institute claiming that net neutrality could cost American consumers up to $15 billion annually -- a claim that has been widely debunked for relying on "fuzzy math" and "significant factual error[s]." In a Feb 20 Bits blog, the NYT reported that a bipartisan group of senators "presented legislation that would permanently ban taxes on high-speed Internet service to American homes," under the Internet tax Freedom Act of 1998. Buried in a single paragraph at the bottom of the blog, the NYT noted that Federal Communications Commission spokesperson Kim Hart has asserted FCC Chairman Tom Wheeler's plan "'does not raise taxes or fees. Period.'"

Left unsaid was the fact that PPI's net neutrality cost estimate has been thoroughly discredited. In a January 16 blog, The Washington Post's Fact Checker shattered PPI's net neutrality cost estimate, awarding the claim that utility-style net neutrality regulation could cost $15 billion "Three Pinnochios," for what it called "significant factual error[s] and/or obvious contradictions." And as the nonpartisan Internet advocacy group Free Press pointed out, PPI's claim is based on a critically flawed methodology that overstates the worst-case scenario tax burden by nearly 75 percent. Furthermore, Congress passed a moratorium last year banning states from imposing new taxes on internet access through October 2015, regardless of any new FCC regulations.

Google Agrees to Spot Checks by Italian Privacy Regulators

Google’s latest agreement with a European privacy regulator includes spot checks at its US headquarters to monitor how Google is complying with an order to improve its privacy policy, add new opt-outs for targeted advertising, and disclose how long it keeps users’ data. The Italian data-privacy authority outlined a process for Google to comply with the country’s privacy laws and an order imposed on the company in July.

Google has until Jan. 15, 2016 to comply. A spokesman for the Italian authority said this is the first time in Europe that Google will be subject to regular checks to monitor progress. The regulator will get quarterly updates from Google and the ability to send a privacy officer for “on-the-spot checks” at Google’s Mountain View (CA) offices. The regulator hasn’t decided yet how often it will visit the campus, the spokesman said.

Google Beats Claims It Forced Unwanted Apps on Device Makers

Google won dismissal of claims it abused its market power by forcing hand-held device makers that use its Android operating system to also provide the search engine company’s applications. US District Judge Beth L. Freeman in San Jose (CA) ruled that consumers failed to identify any harm that the antitrust laws they sued under were designed to address.

Google was accused in a consumer lawsuit of requiring manufacturers make its search engine the default option on Android-powered devices and forcing handset makers such as Samsung to offer less popular Android applications in order to pre-load, for free, favorites such as YouTube. Google faces similar claims in Europe, where it’s under mounting pressure to address competition and privacy issues. European Union lawmakers in November called for regulators to consider splitting the company if it can’t settle a four-year-old antitrust probe. The judge gave lawyers for the consumers three weeks to amend some of their claims and refile the case.

President Obama said everyone wants secure mobile communications. But the NSA worked to undermine that.

"Ultimately, everybody -- and certainly this is true for me and my family -- we all want to know that if we’re using a smartphone for transactions, sending messages, having private conversations, that we don’t have a bunch of people compromising that process," President Barack Obama said. "So there’s no scenario in which we don’t want really strong encryption." But a new report alleges that British and American spies actively sought to undermine the security features that protect mobile networks around the world.

Some privacy advocates have raised concerns that President Obama's rhetoric may indicate he is not aware of some government surveillance activities. "I suspect the president was not fully briefed on the extent law enforcement and intelligence agencies develop, acquire and exploit vulnerabilities in the software we all use," said Christopher Soghoian, principal technologist for the American Civil Liberties Union's Speech, Privacy and Technology Project. "Otherwise, I don't know how he could say that with a straight face."

TV Auction Moving, But Could Still Be Derailed

[Commentary] Can you feel it? I can. The momentum for the Federal Communications Commission incentive auction is building. It was fueled by Preston Padden and his band of broadcasters eager to cash out. The Expanding Opportunities for Broadcasters Coalition came up with two studies that found that the auction of the broadcast spectrum to wireless carriers would fetch at least $80 billion. That's about four times more than what the entire revenue of the local TV broadcasting business will be in 2015.

Progress toward an early 2016 spectrum auction could slow or grind to a halt. The biggest threat to that progress may be the National Association of Broadcaster's lawsuit against the FCC over the repacking of the FCC band following the incentive auction. A second possible momentum killer would be evidence that the demand for the broadcast spectrum is being grossly overestimated. Yet another momentum killer could be the politics of network neutrality. It's a long way to the incentive auction in 2016, but broadcasters and the FCC will get there, if the momentum isn't stalled by legal, financial or political friction.

Briefing Schedule Set in FCC Joints Sales Agreement/Media Ownership Challenge

The US Court of Appeals for the DC Circuit has set the briefing schedule on broadcaster challenges to the Federal Communications Commission's April 2014 media ownership rule decision, but has made those briefs far briefer than broadcasters had requested. Initial petitioner briefs, there will be two of them, will be due to the court April 13. One of those is being filed by the National Association of Broadcasters, Nexstar and Howard Stirk Holdings, the other by Prometheus Radio Project. Both have issues with the FCC decision, but Prometheus is opposing what the other broadcasters support, and vice versa. There are intervening deadlines for briefs from amici and intervenors on both sides. The FCC's brief is due June 11. Reply briefs are all due July 27. Final briefs are due Aug. 6. If the court holds to form, that means oral argument in the case will be no sooner than late September 2015.

The National Association of Broadcasters et al. are challenging the FCC's decision to make joint sales agreements of over 15 percent attributable as ownership interests, saying the decision was arbitrary and capricious. Prometheus says that decision was arbitrary and capricious, too, but because the FCC did not explain why 15 percent was the magic number, and because it did nothing to rein in other sharing arrangements.

Incentive Auction Task Force Road Show

Federal Communications Commission
March 17, 2015
Charlotte, NC
http://transition.fcc.gov/Daily_Releases/Daily_Business/2015/db0219/DA-1...

The FCC's Incentive Auction Task Force will conduct information sessions in cities around the country between February and May to provide broadcasters with the opportunity to learn more about the auction.

In each city, Task Force members, along with representatives from the investment banking firm Greenhill & Co., will hold a general session to present information and address questions on the auction and the repacking process. Members of the Task Force and Greenhill representatives will also be available to meet with individual broadcasters on a confidential basis.

Broadcasters interested in attending the general session or scheduling a confidential meeting should contact Mary Margaret Jackson at MaryMargaret.Jackson@fcc.gov or 202-418-3641 prior to the applicable information session.



Incentive Auction Task Force Road Show

Federal Communications Commission
March 16, 2015
Raleigh-Durham, NC
http://transition.fcc.gov/Daily_Releases/Daily_Business/2015/db0219/DA-1...

The FCC's Incentive Auction Task Force will conduct information sessions in cities around the country between February and May to provide broadcasters with the opportunity to learn more about the auction.

In each city, Task Force members, along with representatives from the investment banking firm Greenhill & Co., will hold a general session to present information and address questions on the auction and the repacking process. Members of the Task Force and Greenhill representatives will also be available to meet with individual broadcasters on a confidential basis.

Broadcasters interested in attending the general session or scheduling a confidential meeting should contact Mary Margaret Jackson at MaryMargaret.Jackson@fcc.gov or 202-418-3641 prior to the applicable information session.



Incentive Auction Task Force Road Show

Federal Communications Commission
March 10, 2015
Detroit, MI and Lansing, MI (in Lansing, MI)
http://transition.fcc.gov/Daily_Releases/Daily_Business/2015/db0219/DA-1...

The FCC's Incentive Auction Task Force will conduct information sessions in cities around the country between February and May to provide broadcasters with the opportunity to learn more about the auction.

In each city, Task Force members, along with representatives from the investment banking firm Greenhill & Co., will hold a general session to present information and address questions on the auction and the repacking process. Members of the Task Force and Greenhill representatives will also be available to meet with individual broadcasters on a confidential basis.

Broadcasters interested in attending the general session or scheduling a confidential meeting should contact Mary Margaret Jackson at MaryMargaret.Jackson@fcc.gov or 202-418-3641 prior to the applicable information session.



Incentive Auction Task Force Road Show

Federal Communications Commission
March 9, 2015
Buffalo, NY
http://transition.fcc.gov/Daily_Releases/Daily_Business/2015/db0219/DA-1...

The FCC's Incentive Auction Task Force will conduct information sessions in cities around the country between February and May to provide broadcasters with the opportunity to learn more about the auction.

In each city, Task Force members, along with representatives from the investment banking firm Greenhill & Co., will hold a general session to present information and address questions on the auction and the repacking process. Members of the Task Force and Greenhill representatives will also be available to meet with individual broadcasters on a confidential basis.

Broadcasters interested in attending the general session or scheduling a confidential meeting should contact Mary Margaret Jackson at MaryMargaret.Jackson@fcc.gov or 202-418-3641 prior to the applicable information session.