March 2015

NEWS FROM THE FCC MEETING

FCC PROPOSES SATELLITE TELEVISION MARKET MODIFICATION RULES
[SOURCE: Federal Communications Commission, AUTHOR: Press release]
The Federal Communications Commission proposed modifying satellite television market rules to enable satellite subscribers to gain access to in-state news and other programming that they currently are unable to receive. The Notice of Proposed Rulemaking implements Section 102 of the STELA Reauthorization Act of 2014 (also known as “STELAR”). The proposal would, as Congress directed, create regulatory parity between satellite and cable television providers. The Commission proposes to apply the existing cable rule to the satellite carriage context, while adding rules to address the unique nature of satellite television service, such as giving carriers an exception if the resulting carriage is “not technically and economically feasible.” Market modification allows ‎the Commission, on request from a broadcaster or cable operator, to add or delete communities from a particular commercial TV broadcast station’s local television market to better reflect market realities. The STELAR requires the Commission to issue final rules for satellite television market modification on or before September 4, 2015.
benton.org/headlines/fcc-proposes-satellite-television-market-modification-rules | Federal Communications Commission | Read the NPRM | Chairman Wheeler | Commissioner Clyburn | Commissioner Rosenworcel | Commissioner Pai | Commissioner O'Rielly
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LOCAL NUMBER PORTABILITY ADMINISTRATOR
[SOURCE: Federal Communications Commission, AUTHOR: Press release]
The Federal Communications Commission today conditionally approved a recommendation that Telcordia Technologies Inc. serve as the next administrator of the service that allows consumers and businesses to keep their phone numbers when switching carriers, called “local number portability.” Local number portability fuels competition by allowing consumers and businesses to choose their phone provider based on cost and service, without the inconvenience and expense of losing a familiar number. In addition to the porting of over 100,000 numbers a day, the capabilities built around local number portability are critical to public safety, law enforcement and consumer protection. The recommendation of Telcordia as Local Number Portability Administrator (LNPA) was developed following a multiyear, competitive process implemented by the FCC’s federal advisory committee on numbering, the North American Numbering Council, with oversight from the FCC. This process included extensive input from industry, consumers, and public safety and government entities, resulting in the recommendation of an experienced, qualified company to administer and keep the system secure. The Order does not award a contract. Rather, it authorizes contract negotiations between the NAPM (North American Portability Management, LLC), which is an industry consortium, and Telcordia. The negotiated contract will be subject to FCC review to ensure that the neutrality and security requirements are fully satisfied.
benton.org/headlines/fcc-conditionally-approves-telcordia-next-local-number-portability-administrator-and | Federal Communications Commission
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NET NEUTRALITY

REP BUTTERFIELD WANTS CONGRESS TO TAKE LEAD ON WEB RULES
[SOURCE: The Hill, AUTHOR: Mario Trujillo]
Unlike most Democrats, Rep GK Butterfield (D-NC), Chairman of the Congressional Black Caucus, wants a legislative fix on network neutrality. Rep Butterfield said the Federal Communications Commission's rule-making process has been "politically driven" by special interests and Congress needs to get involved. He did not, however, give support to any specific plan. "They’ve made a rule change under Title II of the Communications Act that’s going to regulate broadband just like utility and phone companies, and we need to get Congress involved," he said. "Congress needs to come in and establish broadband policy going forward." His words break with many in the Democratic Party who have lauded the FCC's rules. Rep Butterfield questioned, however, whether Congress has the political will to get anything passed, given the partisan dynamics. He said he would help outline the legislative record so that "one day, we can get it done." He said he supports the principles of net neutrality, like preventing service providers from blocking or throttling traffic. But there is not always agreement on which authority should be used to enforce the rules. "When you start getting in the weeds, the issue gets very complicated," he said. "And that’s why Congress needs to develop sound broadband policy. Congress has the power to do it, but the question is, does it have the political will to do it?" Rep Butterfield warned of the lack of permanence of the FCC's rules. “These commissioners don’t serve for life, so when the new commissioners come in, they can reverse what these commissioners have done," he said. "So we need to write into the law good consumer protections and something that individuals and companies can depend on."
benton.org/headlines/rep-butterfield-wants-congress-take-lead-web-rules | Hill, The
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HOW TO END A FIGHT OVER WHO SHOULD REGULATE INTERNET PROVIDERS
[SOURCE: Washington Post, AUTHOR: Brian Fung]
Federal officials are discussing an end to the Federal Trade Commission's legal prohibition on regulating Internet providers and telecommunications companies -- a move that could give Washington wider authority to police perceived abuses and consumer harms in an increasingly important part of the economy. If the idea moves forward, it could mean that both the FTC and the Federal Communications Commission would have the power to go after misbehaving carriers. It could also mean greater cooperation between the two agencies as the lines between telecommunications, business and entertainment continue to merge on broadband networks. Here's why the issue is so important: When the FCC in February decided to start regulating Internet providers more closely under net neutrality, it turned them into what the agency calls "common carriers." But the FTC's congressional charter carries an exemption for common carriers -- a provision that effectively prevents the FTC from taking enforcement actions against such firms and reserves that right for the FCC. But Republicans are warning that letting the FCC regulate the industry with rules on one hand and the FTC with antitrust lawsuits on the other could unnecessarily complicate things. "What the [FCC's net neutrality] order does is take conduct the antitrust law generally presumes is pro-competitive," said FTC Commissioner Joshua Wright during the hearing, "and declares them illegal and anticompetitive in all circumstances."
benton.org/headlines/how-end-fight-over-who-should-regulate-internet-providers | Washington Post
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NET NEUTRALITY AND THE FCC BUDGET
[SOURCE: Katy on the Hill, AUTHOR: Thomas Mocarsky]
At a House Financial Services and General Government Subcommittee hearing, members heard another round of testimony from the dueling duo of network neutrality: Federal Communications Commission Chairman Tom Wheeler and FCC Commissioner Ajit Pai. It was the fourth hearing in seven days during which Republicans have put the FCC’s order to reclassify Internet service as a utility under intense questioning. The FCC is asking Congress for a 21 percent increase in its budget to account for a move of its headquarters, for consolidation of its field offices, and to improve its information technology infrastructure. But Republicans aren’t convinced an increase is in order, given the amount of time the FCC devoted to an order that they don’t like instead of spending its budgeted resources on Congressionally-mandated priorities. “We have kept your funding low for a few years in hopes that limited funding would push you towards prioritizing the most important work of the agency,” said Subcommittee Chairman Ander Crenshaw (R-FL). Rep. Kevin Yoder (R-KS) asked about how the FCC will deal with cost of litigation “when the big dogs sue” over the net neutrality order. “We maintain a litigation staff at the agency because no matter what we decide and whatever issue people turn around as they have a right to, and ask the court to review it,” said Chairman Wheeler. “The litigation staff is in place and that litigation staff would be used to handle it.” Commissioner Pai suggested there would be other costs to the net neutrality order besides litigation. “There are subsequent rule makings, the FCC order tees up a number of new regulations that will need to be adopted, the adjudication of complaints that might be filed at the commission, as well as any advisory opinions the enforcement is called upon to issue,” he said.
benton.org/headlines/will-net-neutrality-bust-fccs-budget | Katy on the Hill | The Hill | Chairman Wheeler | Commissioner Pai | FCC budget | ars technica
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BUDGET AMENDMENT
[SOURCE: The Hill, AUTHOR: Julian Hattem]
Senate Commerce Committee Chairman John Thune (R-SD) is planning to introduce a nonbinding amendment on network neutrality. His brief amendment would establish a deficit-neutral reserve fund “to preserve and protect the open Internet in a manner that provides the Federal Communications Commission with targeted and robust enforcement mechanisms..." At the same time, that measure “protects against regulatory overreach and does not rely on public utility regulations." Like all other amendments during Thursday’s expected marathon voting session, the measure is purely symbolic, non-binding and will have no force of law. However, it would be a chance for lawmakers to register where they stand on the rules.
benton.org/headlines/sen-thune-plots-network-neutrality-budget-amendment | Hill, The
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SPECTRUM/WIRLESS

HOUSE COMMUNICATIONS SUBCOMMITTEE MEMBERS HOLD ROBUST BIPARTISAN DISCUSSION OF US SPECTRUM POLICY
[SOURCE: House of Representatives Commerce Committee, AUTHOR: Press release]
The House Communications Subcommittee discussed the future of US spectrum policy. With ever increasing demand for this finite resource, members explored how the federal government can help meet America’s spectrum needs. “There’s no question that mobile technology is one of the key components of the economy of both today and of the future,” said Chairman Greg Walden (R-OR). “Time and again, as the country that pioneered spectrum auctions once, and is in the process of doing it again, the world looks to the United States to lead spectrum policy and answer the challenge of meeting spectrum demand. We must continue to rise to that challenge.” Members reviewed the Federal Communication Commission’s progress toward the first-of-its-kind Incentive Auction. Members raised a number of questions about the auction including what is being done to ensure broadcasters choosing not to participate are not adversely affected, cross border coordination of spectrum use, and ensuring that small businesses, including those owned by women and minority groups, have the ability to compete in the auction. Reps Brett Guthrie (R-KY) and Doris Matsui (D-CA) discussed their work to increase the efficiency of federal spectrum use, and reintroduced the Federal Spectrum Incentive Act. The bipartisan legislation, HR 1641, aims to incentivize federal agencies to free up additional spectrum for commercial use by relocating and consolidating spectrum holdings in return for a portion of the auction revenues as compensation. “By encouraging federal agencies to make additional spectrum available, we can invest in innovation and ensure spectrum is available to meet the demands of our critical emergency needs and commercial uses,” said Rep Guthrie.
benton.org/headlines/house-communications-subcommittee-members-hold-robust-bipartisan-discussion-us-spectrum | House of Representatives Commerce Committee
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OWNERSHIP

BEHIND FTC’S DECISION
[SOURCE: Wall Street Journal, AUTHOR: James Miller, Daniel Oliver]
[Commentary] The release of an internal Federal Trade Commission staff recommendation memo regarding its investigation of Google has led some to question the agency’s decision not to file a lawsuit against the company for allegedly violating antitrust laws. In the eyes of some Google competitors, the memo provides ammunition to the European Commission to bring its own legal action against Google. That thinking is misguided and misconstrues the FTC’s decision-making process. Although some are suggesting that the memo shows convincingly that the agency should have taken legal action against Google for its search and advertising practices, the document represents only one part of a 19-month investigation. Critics of the FTC ignore all the other internal economic and legal analyses, evidence from complainants, as well as millions of pages of documents, and hours upon hours of testimony. Google faces competition on all fronts, from specialized search engines to social networks to other general search engines. Many of these companies are thriving in competition with Google, despite their continued complaints. That should be evidence enough that the FTC was correct not to sue Google.
[Miller was chairman of the Federal Trade Commission from October 1981 to October 1985. Oliver was the FTC chairman from April 1986 to August 1989.]
benton.org/headlines/behind-ftcs-unsurprising-decision-not-sue-google | Wall Street Journal
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AT&T’S TV BET
[SOURCE: Wall Street Journal, AUTHOR: Thomas Gryta]
AT&T knew it was buying a melting ice cube when it agreed to acquire satellite-TV company DirecTV last year for $49 billion. But recent moves by HBO, Apple Inc. and the National Football League have turned the temperature up a few degrees. A wave of new TV services delivered over the Internet allow Americans to get prime programming like the hit HBO series “Game of Thrones” and ESPN sports without paying a big cable or satellite bill. That, in theory, means fewer customers for bundles of TV channels like those sold by DirecTV. And unlike cable companies, DirecTV doesn’t have a significant broadband business to fall back on. AT&T is aware of the risks. “The world is going to be broadband -- wireless and fixed -- and that is where we want to be,” said AT&T’s Chief Strategy Officer John Stankey. Telecom and cable analyst Craig Moffett of MoffettNathanson says the new services pose very little threat to traditional pay TV, which will keep losing customers at a very slow rate. But he also says the new offerings from companies that control content have made the industry’s trajectory harder to forecast.
benton.org/headlines/new-services-cloud-atts-bet-pay-tv | Wall Street Journal
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TELECOM

KENTUCKY’S TELECOM LAW
[SOURCE: Louisville Business First, AUTHOR: Wesley Kerrick]
Gov Steve Beshear (D-KY) has signed legislation that limits Kentucky telecommunication companies' obligation to provide landline phone service. Companies will be allowed to discontinue landline service in urban areas as long as they provide some type of phone service to those areas, such as wireless services or voice over Internet protocol. The companies will retain landline service for existing customers in rural areas, but they will not be required to provide it for new developments. Telecommunication companies say the measure will remove the financial burden of maintaining landline service, allowing them to invest instead in newer technology.
benton.org/headlines/gov-beshear-signs-telecom-deregulation-bill | Louisville Business First
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LANDLINE DEREGULATION
[SOURCE: Minnesota Public Radio, AUTHOR: Jon Collins]
A proposal that would change how local phone companies are regulated at the Minnesota State Capitol is facing opposition amidst concerns that it would lead to higher prices and less service in rural areas. The bill's advocates say less regulation would allow them to stay competitive with newer technologies. Attorney General Lori Swanson said the proposal that's being pushed by telecommunication companies would "eviscerate" 100 years of state law protecting consumers, including a requirement that phone companies provide access in far-flung rural areas. "We're very concerned that they'll just drop people who are too expensive to serve," Swanson said. "And we're very concerned that if they don't drop you, they'll say, 'Great, it will be $250 a month.'" The bills are opposed by former Minnesota Attorney General Skip Humphrey and Mike Hatch, who called it a "metro-centric" bill that would hurt the elderly and the poor.
benton.org/headlines/minnesotas-attorney-general-landline-deregulation-would-raise-prices-cut-service | Minnesota Public Radio
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EMERGENCY COMMUNICATIONS

FIRSTNET DELAYS DRAFT RFP, CITES FINANCE COMMITTEE QUESTIONS
[SOURCE: Fierce, AUTHOR: Monica Alleven]
The First Responder Network Authority (FirstNet) said it would delay the release of a draft RFP due to questions that arose in its finance committee. On March 24, four FirstNet committees met in separate sessions: governance and personnel; technology; outreach; and finance. Board members were expected to approve a complete draft RFP, but on March 25, the full board met and said it would delay a vote to issue the RFP until a later date. TJ Kennedy, acting executive director at FirstNet, said he was pleased with progress made thus far across the board, from outreach to acquisition. "We just want to make sure we have all the details put together, and you'll be seeing that come out over the next several weeks," he said. The board is expected to next meet via teleconference in the next several weeks. The other committees were okay with the RFP, so once the finance committee's issues are addressed, it can move forward. Stuart Kupinsky, FirstNet's chief counsel, said they couldn't disclose too much about the finance committee's outstanding issues. The committee is dealing with confidential materials related to market research, and revealing too much could jeopardize their standing.
benton.org/headlines/firstnet-delays-draft-rfp-cites-finance-committee-questions | Fierce
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STORIES FROM ABROAD

NEW UN INVESTIGATOR TO PROBE DIGITAL SPYING
[SOURCE: Reuters, AUTHOR: Stephanie Nebehay]
The United Nations top human rights body agreed to appoint a special investigator to probe digital spying and violations of online privacy. Brazil and Germany spearheaded the resolution, which voiced deep concern over electronic surveillance and the interception of digital communications, as well as data collection by governments and private companies. Former US National Security Agency contractor Edward Snowden exposed mass surveillance of private e-mails and phone data across the world two years ago, sparking outrage. Brazil's government fell out with Washington at the time over revelations that the NSA had eavesdropped on President Dilma Rousseff. Snowden has said the United States also carried out large-scale electronic espionage in Germany. "States must respect international human rights obligations regarding the right to privacy when they intercept digital communication of individuals and/or collect personal data," Brazil's ambassador Regina Dunlop told the UN Human Rights Council in presenting the resolution. The Geneva forum, whose 47 members include the United States, adopted the text unanimously. During the debate, Russia's delegation criticized mass surveillance by the United States while Cuba took aim at "certain Western powers".
benton.org/headlines/new-un-investigator-probe-digital-spying | Reuters
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NEW TELECOM RULES FOR EUROPE?
[SOURCE: Wall Street Journal, AUTHOR: Tom Fairless]
The European Union is weighing an overhaul of its telecommunications rules that could give incumbent operators like Deutsche Telekom AG an edge over upstart challengers like Iliad SA of France and messaging service WhatsApp. The EU proposals -- due to be completed by May -- are part of an ambitious strategy to create a single digital market across the 28-country bloc by breaking down national silos in areas like e-commerce and copyright law. The European Commission, the bloc’s executive arm, said that as part of the plan, it would review existing EU telecom and media rules “to encourage investment in infrastructure.” The rules should be made “fit for new challenges,” particularly with regard to “the increasing number of voice calls made over the Internet and new players in the field,” the commission said.
benton.org/headlines/european-commission-considers-new-telecom-rules-level-playing-field | Wall Street Journal
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