May 2015

May 21, 2015 (McConnell plays hardball on PATRIOT Act)

BENTON'S COMMUNICATIONS-RELATED HEADLINES for THURSDAY, MAY 21, 2015

FCC Open Meeting Today! More Events on Our Calendar: https://www.benton.org/calendar


PRIVACY/SECURITY
   Obama Admin: NSA Spying Will Begin Shutting Down This Week
   Sen McConnell plays hardball on PATRIOT Act
   House conservatives: Sen McConnell push for clean Patriot Act a 'waste of time' [links to web]
   Sen Rand Paul speaks 11 hours against Patriot Act renewal and the Designated Hitter Rule [links to web]
   FBI chief: Letting Patriot Act expire would be a 'big problem' [links to web]
   What Congress gets wrong about NSA surveillance practices - Rachel Brand op-ed [links to web]
   FCC Enforcement Bureau Guidance: Broadband Providers Should Take Reasonable, Good Faith Steps To Protect Consumer Privacy - public notice
   ISPs really don’t want to follow new customer data privacy rules [links to web]
   If the FTC comes to call - FTC blog/press release [links to web]
   Americans’ Attitudes About Privacy, Security and Surveillance - Pew research
   Bankruptcy Judge Approves Sale of RadioShack Name and Data [links to web]

WIRELESS/SPECTRUM
   FCC’s Incentive Auction Task Force Releases Initial Clearing Target Optimization Simulations - public notice
   Will Wireless Carriers Really Kill Mobile Advertising, or Is It Just a Bluff? [links to web]
   Dish Defends Its Spectrum Auction Strategy
   EOBC Battles 'Devaluing' Broadcast Auction Spectrum [links to web]
   Verizon's former CEO and a former FCC chairman push LightSquared's case directly to FCC's Wheeler [links to web]

INTERNET/BROADBAND
   Why we need a market-driven, consumer-focused revamp of the Lifeline program - AEI op-ed
   FCC Enforcement Bureau Guidance: Broadband Providers Should Take Reasonable, Good Faith Steps To Protect Consumer Privacy - public notice

   TIA's Belcher: The current Internet regulatory system isn't broken [links to web]
   Net Vitality Policies Should Promote Future Global Broadband Internet Development - Morning Consult op-ed [links to web]
   Verizon sees value in transforming network to IP, fiber, but conversion challenges remain [links to web]

TELEVISION
   Comcast Seen Winning Freedom to Raise Rates in Proposal at FCC

OWNERSHIP
   Bankruptcy Judge Approves Sale of RadioShack Name and Data [links to web]
   How the cable industry became a monopoly - op-ed
   Five Things You Need to Know About Altice [links to web]
   Altice’s Deal to Buy Suddenlink May Be Prelude to Pursuit of Time Warner Cable [links to web]
   Going After the Gigabits [links to web]

CONTENT
   The Silicon Tower - Future Tense analysis
   Facebook Use Polarizing? Site Begs to Differ [links to web]

ELECTIONS & MEDIA
   Improving media capacity: Media must focus on policy not just politics - Brookings op-ed
   Facebook Use Polarizing? Site Begs to Differ [links to web]
   Fox to Limit First GOP Primary Debate to Top-10 Candidates [links to web]

EMERGENCY COMMUNICATIONS
   Facebook and the Illusion of Safety - Atlantic op-ed [links to web]

GOVERNMENT & COMMUNICATIONS
   Hacked Sony E-mails Reveal Behind-the-Scenes Political Dealings in LA [links to web]
   The bizarrely slow process of releasing Hillary Clinton’s e-mails, explained [links to web]
   Hillary Clinton doesn’t need the media, and it’s driving the media crazy [links to web]
   Silicon Valley’s Army of Advocates in Washington [links to web]

JOURNALISM
   Study: DC insiders trust media more
   Hillary Clinton doesn’t need the media, and it’s driving the media crazy [links to web]

FCC REFORM
   House Communications and Technology Committee Approves Seven Bills to Open the FCC’s Doors to the American People
   Chairman Walden won’t give up on reforming the FCC

POLICYMAKERS
   President Obama Nominated FCC Commissioner Rosenworcel for Another Term
   Study: DC insiders trust media more

COMPANY NEWS
   Cablevision sues Verizon, defends commercial targeting FiOS
   Going After the Gigabits [links to web]
   Verizon sees value in transforming network to IP, fiber, but conversion challenges remain [links to web]

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PRIVACY/SECURITY

OBAMA ADMIN: NSA SPYING WILL BEGIN SHUTTING DOWN THIS WEEK
[SOURCE: National Journal, AUTHOR: Dustin Volz]
The Patriot Act provisions that have allowed the National Security Agency to vacuum up Americans' phone records officially expire on June 1. But the Obama Administration says the NSA must begin preparing to end its bulk-telephone-spying program as soon as May 22. A Justice Department memo circulated among congressional offices said Congress needs to fully settle its differences over the expiring spy provisions during the week of May 18th in order to avoid an operational interruption to the NSA's mass-surveillance program, which was exposed by former intelligence contractor Edward Snowden in 2013. "After May 22, 2015, the National Security Agency will need to begin taking steps to wind down the bulk-telephone-metadata program in anticipation of a possible sunset in order to ensure that it does not engage in any unauthorized collection or use of the metadata," the memo states. The memo continues: "NSA will attempt to ensure that any shutdown of the program occurs as close in time as possible to the expiration of the authority, assuming the program has not been reauthorized in some form prior to the scheduled sunset of Section 215. In the event of a lapse in authority and subsequent reauthorization, there will necessarily be some time needed to restart the program. … For these reasons, after May 22, 2015, it will become increasingly difficult for the government to avoid a lapse in the current NSA program of at least some duration."
benton.org/headlines/obama-admin-nsa-spying-will-begin-shutting-down-week | National Journal | The Hill
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SEN MCCONNELL PLAYS HARDBALL ON PATRIOT ACT
[SOURCE: Politico, AUTHOR: Seung Min Kim, Burgess Everett]
Republican divisions on Capitol Hill over the PATRIOT Act deepened May 19 as Senate Majority Leader Mitch McConnell (R-KY) privately made his case against a popular House bill that would end the National Security Agency’s bulk data collection program. Majority Leader McConnell said he plans to put the House-passed USA Freedom Act on the Senate floor later in the week of May 18 -- a move that could show it can’t pass the Senate. But in a closed-door party lunch on May 19, Majority Leader McConnell made clear his preference for a two-month extension of the current law. And to bolster his case against the House measure, the GOP leadership invited Michael Mukasey to meet with Senate Republicans, and the former attorney general argued in favor of keeping the PATRIOT Act provisions intact. Still, top House Republicans insist their bill is the only option for the Senate, with the House set to leave town on May 21, and Speaker of the House John Boehner (R-OH) giving no indication that he is willing to bail out Senate Republicans with a short-term lifeline for the expiring PATRIOT Act provisions. Concerned Senate Republicans are now pumping the brakes while the debate over the PATRIOT Act further exposes a rift within the GOP between its hawkish and libertarian wings.
benton.org/headlines/sen-mcconnell-plays-hardball-patriot-act | Politico
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FCC GUIDANCE ON BROADBAND CONSUMER PRIVACY
[SOURCE: Federal Communications Commission, AUTHOR: Public Notice]
The Federal Communications Commission’s Open Internet Order applies the core customer privacy protections of Section 222 of the Communications Act to providers of broadband Internet access service (“BIAS”). The FCC has found that absent privacy protections, a broadband provider’s use of personal and proprietary information could be at odds with its customers’ interests and that if consumers have concerns about the protection of their privacy, their demand for broadband may decrease. At the same time, the FCC declined to apply its existing telephone-centric rules implementing Section 222 and indicated that in the future it may adopt implementing rules that are tailored to broadband providers. As a result, the statutory provisions of Section 222 themselves will apply to broadband providers when the Open Internet Order goes into effect. This Advisory provides guidance to broadband providers about how the Enforcement Bureau intends to enforce Section 222 in connection with BIAS during the time between the effective date of the Open Internet Order and any subsequent FCC action providing further guidance and/or adoption of regulations applying Section 222 more specifically to BIAS.
benton.org/headlines/fcc-enforcement-bureau-guidance-broadband-providers-should-take-reasonable-good-faith | Federal Communications Commission
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AMERICANS' ATTITUDES ABOUT PRIVACY, SECURITY AND SURVEILLANCE
[SOURCE: Pew Research Center, AUTHOR: Mary Madden, Lee Rainie]
The cascade of reports following the June 2013 government surveillance revelations by National Security Agency contractor Edward Snowden have brought new attention to debates about how best to preserve Americans’ privacy in the digital age. At the same time, the public has been awash with news stories detailing security breaches at major retailers, health insurance companies and financial institutions. These events -- and the doubts they inspired -- have contributed to a cloud of personal “data insecurity” that now looms over many Americans’ daily decisions and activities. Some find these developments deeply troubling and want limits put in place, while others do not feel these issues affect them personally. Others believe that widespread monitoring can bring some societal benefits in safety and security or that innocent people should have “nothing to hide.” Two new Pew Research Center surveys explore these issues and place them in the wider context of the tracking and profiling that occurs in commercial arenas. The surveys find that Americans feel privacy is important in their daily lives in a number of essential ways. Yet, they have a pervasive sense that they are under surveillance when in public and very few feel they have a great deal of control over the data that is collected about them and how it is used. While some Americans have taken modest steps to stem the tide of data collection, few have adopted advanced privacy-enhancing measures. However, majorities of Americans expect that a wide array of organizations should have limits on the length of time that they can retain records of their activities and communications. At the same time, Americans continue to express the belief that there should be greater limits on government surveillance programs. Additionally, they say it is important to preserve the ability to be anonymous for certain online activities.
benton.org/headlines/americans-attitudes-about-privacy-security-and-surveillance | Pew Research Center
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WIRELESS/SPECTRUM

OPTIMIZATION SIMULATIONS
[SOURCE: Federal Communications Commission, AUTHOR: Public Notice]
The Federal Communications Commission’s Incentive Auction Task Force provides the results of several staff simulations of the initial clearing target optimization procedure proposed in the Auction 1000 Comment Public Notice, modified as discussed below. Releasing this data will better enable interested parties to analyze issues related to the selection of an initial spectrum clearing target. Preston Padden, who heads the Expanding Opportunities for Broadcasters Coalition (EOBC), said the simulations looked like progress. "It shows that the commission believes 126 MHz is achievable," he said. He also pointed out that the scenarios were run assuming 10% impairment, rather than 20%, and relaxed assumptions about Canada and Mexico. "We clearly have to analyze the data," he said. But it appears to be a positive development. EOBC represents broadcasters looking to give up spectrum in the auction at the right price and under the right circumstances. Since the FCC chose a variable band plan, which means it could collect different amounts of spectrum in different markets, some broadcasters will still be operating in spectrum shared with wireless and there will be some allowable threshold of interference. The lower the allowable interference — 10% rather than 20% — the more valuable the spectrum is. FCC Commissioner Ajit Pai was not so sanguine about the simulations, including that the FCC commissioners were not allowed to vote on it, which he had requested. Commissioner Pai was concerned that the having proposed that the initial clearing target would assume that up to 20% of spectrum nationwide could be impaired, the FCC based its simulation on another figure. He also said the fact that the simulations did not take into account any interference from Mexican TV stations makes the data misleading and "far from reality."
benton.org/headlines/fccs-incentive-auction-task-force-releases-initial-clearing-target-optimization | Federal Communications Commission | Appendix | Commissioner Pai | B&C
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DISH DEFENDS ITS SPECTRUM AUCTION STRATEGY
[SOURCE: Wall Street Journal, AUTHOR: Ryan Knutson]
Dish Network responded to critics of its bidding strategy in a recent auction of wireless licenses, saying it followed all the rules and helped competition. The company came under fire from rivals and some lawmakers after it won big at the $45 billion auction that ended in January. Dish itself didn’t win any licenses, but the two firms it bankrolled placed $13.3 billion in winning bids -- second only to AT&T’s $18.2 billion -- then claimed $3.3 billion in discounts aimed at small business. Dish’s reply came in a response to a letter sent in April by Sen John Thune (R-SD), who suggested Dish’s strategy may have violated auction rules. AT&T and Verizon Communications have also argued that Dish’s coordination with the firms suppressed competition in some instances and created the false impression of increased demand in others. Dish said auction rules allowed it and the two firms, called SNR Wireless and Northstar Wireless, to collaborate on bids and discuss strategy during the auction because it disclosed the arrangement in advance. Dish also pointed to past government auctions where other carriers have collaborated in similar fashion with smaller firms. The company said its participation in the auction was good for competition, and its collaboration with SNR and Northstar helped the firms beat out industry giants AT&T and Verizon for some licenses they may otherwise have lost.
benton.org/headlines/dish-defends-its-spectrum-auction-strategy | Wall Street Journal
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INTERNET/BROADBAND

LIFELINE REFORM
[SOURCE: American Enterprise Institute, AUTHOR: Daniel Lyon]
[Commentary] The basic tenet of universal service – that the government should assist those who cannot afford basic access to the telecommunications network – has long been a cornerstone of the nation’s telecommunications policy. This assistance is justified by network effects: the larger the number of people a network reaches, the more valuable that network is to each user. Universal service also supports non-economic goals such as improved civic participation, enhanced economic opportunities, free speech, and public safety. As the telephone gives way to the Internet as the nation’s primary telecommunications network, Congress must consider options to narrow the digital divide and assist low-income consumers who cannot afford basic network access. I advocate for a voucher-based approach to broadband universal service. America’s migration to broadband networks presents a once-in-a-generation opportunity to transform its existing telecommunications subsidy program, which is outdated, mismanaged, and unnecessarily complex. Of course, subsidizing access does not alone solve the digital divide—consumers face additional cost hurdles such as equipment costs, and there remain areas where broadband buildout is uneconomical. But a voucher-based broadband program would help bring Lifeline into the Internet era with market-driven incentives that promote consumer choice and competition, while avoiding some of the pitfalls of the existing regime.
[Lyons is an associate professor at Boston College Law School]
benton.org/headlines/why-we-need-market-driven-consumer-focused-revamp-lifeline-program | American Enterprise Institute
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TELEVISION

COMCAST SEEN WINNING FREEDOM TO RAISE RATES IN PROPOSAL AT FCC
[SOURCE: Bloomberg, AUTHOR: Todd Shields]
Apparently, cable companies such as Comcast would be free to raise customer rates without local government approval under a US regulator’s proposal. Cities, states and other localities would lose regulatory authority over basic programming packages under the plan from Federal Communications Commission Chairman Tom Wheeler, said two agency officials who requested anonymity because the proposal hasn’t been made public. Broadcasters say the change may leave cable providers free to exile TV stations from the basic cable package. The FCC said it wanted to ease a restriction adopted in 1993, before satellite broadcasters competed with cable and when many communities were served by only one pay-TV provider. Cable companies say the change eliminates needless red tape. Critics say protection is still needed. The proposal is “contrary to the public interest,” the FCC’s Intergovernmental Advisory Committee said in a March 16 statement. “It’s just going to make things worse for consumers, not better,” said Gary Resnick, chairman of the advisory panel appointed by the agency chairman and made up of local, state and tribal officials. The proposal would remove protections including those that cap the price of a basic channel tier and equipment, require uniform rates across a locality, and make pay-TV and premium offerings more widely available, Resnick’s panel told the FCC. Broadcasters fear the change will let cable companies assign TV-station signals to pricier tiers, cutting the audience for local programming, said Dennis Wharton, spokesman for the National Association of Broadcasters trade group.
benton.org/headlines/comcast-seen-winning-freedom-raise-rates-proposal-fcc | Bloomberg
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OWNERSHIP

HOW THE CABLE INDUSTRY BECAME A MONOPOLY
[SOURCE: Fortune, AUTHOR: Richard Greenfield]
[Commentary] Cable companies keep looking at industry regulation through a video-centric lens. Most Americans enjoy television, with the cable industry having invested heavily to extend the reach of over-the-air TV beyond the bounds of antennas. Given the reach of over-the-air TV and the proliferation of multichannel video competition to the cable industry (first from satellite, then telecommunications such as Verizon, AT&T, and now Google Fiber and Internet-based video providers such as Sling TV and Sony Vue), the risks posed by video consolidation are relatively minimal with the courts twice striking down legislation to limit marketshare held by video distributors to 30 percent of all US subscribers. Remember, the primary argument in support of investing in cable stocks over the past five-plus years has been that the current “pipe” is so robust, it will not require digging up the streets again to add capacity. While the government clearly appreciates the investment the cable industry has made to build high-quality broadband access across the US, they are concerned that cable has built its way into a powerful position that is dangerously close to a monopoly. This will ultimately change as Google rolls out Fiber, AT&T T 0.36 percent improves U-Verse by offloading video via, and municipal broadband efforts accelerate. However, for the next several years, if not longer, most Americans will have little to no choice for high-end broadband beyond their local cable operator.
[Richard Greenfield is a media and technology analyst with BTIG Research]
benton.org/headlines/how-cable-industry-became-monopoly | Fortune
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CONTENT

THE SILICON TOWER
[SOURCE: Slate, AUTHOR: David Auerbach]
[Commentary] I am a data junkie. As I researched my column last week about the implications of Facebook’s study on the sharing of political content, I practically drooled over the data the social network had released as part of it. In order to identify patterns in how stories from various news websites are shared on Facebook -- and conclude that the far left and far right are particularly siloed in their exposure to political ideas -- I had to both draw upon qualitative background knowledge (about politics and political websites) and assess ambiguous quantitative measures (like Facebook shares). While that background knowledge is available in libraries and on Amazon, the data was only accessible because a private company allowed it be. For an increasing amount of data-driven research, whether it’s me sifting through social shares or AI researchers trying to train a computer to identify a cat, we need companies’ data. And for the most part, they don’t want to give it to us. With the rise of Silicon Valley as we know it today, the private sector has gained pre-eminence in driving technology forward, with massive tech revenues supplanting military-industrial complex dollars in many areas of computer technology. While the coupling of defense concerns and technological innovation is inherently problematic, one side effect of these public-private partnerships was a traditionally collective approach to scientific research; the government might have held some of the purse strings, but it didn’t micromanage the research. But in the case of a company like Facebook, the research takes place behind closed corporate doors and materials are released only at Facebook’s discretion. We should be concerned about the increasing transfer of a portion of science and social science research away from the public eye and into the corporate sector.
benton.org/headlines/silicon-tower | Slate
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ELECTIONS & MEDIA

IMPROVING MEDIA CAPACITY: MEDIA MUST FOCUS ON POLICY NOT JUST POLITICS
[SOURCE: Brookings, AUTHOR: James Klurfeld]
[Commentary] The problem with political reporting today isn’t only the communications revolution represented by the Internet and social media. The problem, at least in part, has its roots in Theodore H. White’s classic book “The Making of a President 1960.” White wrote so elegantly about the inner game of presidential politics, the tactics and maneuvering behind the scenes, that coming generations of political reporters have attempted to emulate White -- in real time. White’s books on presidential campaigns (he wrote four of them) have led to coverage that is dominated by analysis of political tactics at the expense of an examination of the more fundamental issues in a campaign. Too often the news media will note a new position by a candidate and then go on to explain the political motivation for the position but not discuss the substance of the proposal. Most political reporters are experts in the machinations of politics not the nuances of policy. The reality of the Internet is that voters can find the information they need to make informed voting decisions¸ but it takes effort and a willingness to be open to information that might contradict already held beliefs. However, a news literacy course can only be part of that effort. The challenge remains for the news media to make voters aware that there is fact-based information available to them. As an ever-expanding election cycle goes in full motion the challenge for the news media is to provide fact based information to voters including, but not dominated by political tactics, and for voters to take advantage of the unprecedented availability of that fact based information.
[James Klurfeld is a visiting professor of Journalism at Stony Brook University]
benton.org/headlines/improving-media-capacity-media-must-focus-policy-not-just-politics | Brookings
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POLICYMAKERS

FCC COMMISSIONER ROSENWORCEL
[SOURCE: The Hill, AUTHOR: David McCabe]
President Barack Obama plans to renominate Federal Communications Commission Commissioner Jessica Rosenworcel to her post. Her current term expires this summer. Commissioner Rosenworcel was nominated to her position in 2011. Before that, she was a top aide to the Senate Commerce Committee. She also advised former FCC commissioner Michael Copps earlier in her career. At the FCC she has been a strong proponent of boosting broadband deployment and speeds to schools and libraries and has supported FCC Chairman Tom Wheeler on key votes for new network neutrality rules and preempting state laws on municipal broadband. She also worked on incentive auction legislation while a Senate staffer, and has worked on its implementation as the FCC works through rules for the broadcast incentive auction.
benton.org/headlines/president-obama-nominated-fcc-commissioner-rosenworcel-another-term | Hill, The | Multichannel News
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STUDY: DC INSIDERS TRUST MEDIA MORE
[SOURCE: Politico, AUTHOR: Hadas Gold]
Washington insiders are trusting the media more, though they are sometimes overwhelmed by it, the fifth edition of National Journal’s Washington in the Information Age study found. The study also showed that a broader swath of Washington insiders are using LinkedIn (though Facebook is used more frequently), have nearly completely converted from BlackBerrys to iPhones, and love e-mail newsletters. Conducted via online survey over the course of four weeks among 1,200 Washington insiders, the study included more than 120 Capitol Hill staff, more than 600 respondents from the private sector public affairs community and nearly 400 federal executives. Respondents to the survey expressed higher levels of trust in individual media sources across the board since the last time the survey was conducted in 2012. Around 81 percent of respondents trust national news brands, such as CNN or the New York Times, an 11 percent increase from 2012. Some 72 percent of respondents trust an "inside-the-Beltway" publication, such as POLITICO or National Journal, a 13 percent increase from 2012. Online-only news sources, such as the Huffington Post and Daily Caller, experienced a 13 percent jump in trustworthiness, up to 23 percent of respondents. More of the insiders, 32 percent, read e-mail newsletters on their mobile devices “as soon as I woke up” than any other type of news consumption. Radio then takes over during the morning commute, before e-mail newsletters and websites, which 74 percent and 72 percent of respondents said they read throughout the workday respectively. Viewing websites on a computer dominated the workday until the evening commute, when radio takes over again, and then TV at night.
benton.org/headlines/study-dc-insiders-trust-media-more | Politico
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FCC REFORM

FCC REFORM MARKUP
[SOURCE: House of Representatives Commerce Committee, AUTHOR: Press release]
The House Subcommittee on Communications and Technology, chaired by Rep Greg Walden (R-OR), approved seven bills aimed at improving transparency and process at the Federal Communications Commission. Broadcasting and Cable reports that the markup featured some sparks between the chairman and ranking member, a passionate attack on the Supreme Court's Citizens United decision on money and politics, and Democratic amendments defeated on party line votes. While the Democratic-backed bills — which directed the FCC to publicize how it made decisions and the status of items — were approved on voice votes without contention, the Republican bills were strongly opposed. The subcommittee advanced the following bills:
A draft bill, authored by Rep. Doris Matsui (D-CA), that would require the FCC to coordinate with the Small Business Administration and issue recommendations to improve small business participation in FCC proceedings. The draft bill was approved by voice vote.
A draft bill, Rep. David Loebsack (D-IA), that would require the chairman to post the commission’s internal procedures on the FCC website and update the website when the chairman makes any changes. The draft bill was approved by voice vote.
A draft bill, authored by Rep. Yvette Clarke (D-NY), that would require the FCC to report quarterly to Congress and to post on the FCC website data on the total number of decisions pending categorized by bureau, the type of request, and how long the requests have been pending. The report also includes a list of pending Congressional investigations and an audited cost to the agency. The draft bill was approved by voice vote.
A bill offered by Communications and Technology Subcommittee Vice Chairman Bob Latta (R-OH) would require the FCC to publish a list of items that are placed on delegated authority – that is, decided at the bureau level in lieu of a commission vote. The draft bill was approved by a vote of 16-12.
A bill offered by Rep. Renee Ellmers (R-NC) would require the FCC to publish new rules on the same day that they are adopted. The draft bill was approved by a vote of 17-13.
A bill offered by Rep. Adam Kinzinger (R-IL) would require the FCC to publish the draft of a rulemaking, order, report or any other action when it is circulated to the commissioners for a vote. The bill does not prevent the FCC from making changes to the item after it has been circulated, but it allows the public to see what the chairman is proposing to the rest of the commission. The draft bill was approved by voice vote.
A discussion draft of the FCC Process Reform Act, authored by subcommittee Chairman Walden, Ranking Member Anna G. Eshoo (D-CA), and Rep. Adam Kinzinger (R-IL), that aims to increase transparency and predictability at the commission. The draft bill was approved by voice vote.
benton.org/headlines/house-communications-and-technology-committee-approves-seven-bills-open-fccs-doors | House of Representatives Commerce Committee | The Hill | B&C | B&C -- delegated authority
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REP WALDEN WON'T GIVE UP ON REFORMING THE FCC
[SOURCE: Katy on the Hill, AUTHOR: Kathryn Bachman]
When it comes to who in Congress has sway over media and tech issues, look no further than House Communications Subcommittee Chairman Greg Walden (R-OR). Chairman Walden, a ham radio operator and former broadcaster, has been trying to get some changes at how the Federal Communications Commission does its business for the better part of three Congresses. And he’s not about to give up now. Nor is Chairman Walden stopping with the FCC. The mild-mannered lawmaker is also ready to take on a rewrite of the entire communications law, the 80 year-old statute that hasn’t had an update since 1996 -- before the Internet and before mobile devices became a part of every day life. We interviewed Chairman Walden before May 20th’s mark up of 7 bills to reform FCC process. Among the changes proposed: require the agency to publish drafts of proposed rules before votes and immediately publish texts of final orders after votes.
benton.org/headlines/rep-walden-wont-give-reforming-fcc | Katy on the Hill
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COMPANY NEWS

CABLEVISION SUES VERIZON, DEFENDS COMMERCIAL TRAGETING FIOS
[SOURCE: Fierce, AUTHOR: Daniel Frankel]
Cablevision has filed its second advertising-related lawsuit against Verizon in the last five months, defending a TV commercial that claims Verizon's FiOS service partially relies on cable to deliver video and Internet into residences. The suit, filed in a Manhattan (NY) federal court, comes after Verizon in April launched a proceeding before the Better Business Bureau's National Advertising Division, which challenged Cablevision's assertion that FiOS actually uses cable and is not "100 percent fiber." "Consumers deserve to make informed decisions based on facts, and Cablevision is asking the court to intervene to stop Verizon from attempting to continue to mislead the public," the company said. Alberto Canal, a Verizon spokesman, said the lawsuit demonstrated Cablevision's "appetite for confusing consumers." He also reasserted that Verizon's FiOS service operated on a 100 percent fiber-optic network. "Since their network can't compete against FiOS, they resort to legal stunts, which we will challenge vigorously," he said.
benton.org/headlines/cablevision-sues-verizon-defends-commercial-targeting-fios | Fierce
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Sen Rand Paul speaks 11 hours against Patriot Act renewal and the Designated Hitter Rule

Sen Rand Paul (R-KY) spent most of May 20 talking.

He took to the Senate floor at 1:18 p.m., interrupting a debate on a trade bill, to speak against a reauthorization of the Patriot Act. With the exception of breaks to allow colleagues to speak, he talked, and stood, for nearly 11 hours before yielding the floor just before midnight. His marathon seizure of the Senate came after a week of repeatedly threatening to filibuster a reauthorization of the Patriot Act — a fight he conceded May 18 he cannot win, because he does not have the votes. Sen Paul spoke for about 2 1/2 hours before he got help from Sen. Ron Wyden (D-OR), with whom Sen Paul has crafted his planned opposition. The two went back and forth asking each other questions — very, very long questions — about surveillance and the collection of bulk records.

Others who aided Sen Paul were Sens Mike Lee (R-UT), Martin Heinrich (D-NM), Steve Daines (R-MT), Joe Manchin III (D-WV), Richard Blumenthal (D-CT), Maria Cantwell (D-WA), Christopher Coons (D-DE), Jon Tester (D-MT), Ted Cruz (R-TX), and Marco Rubio (R-FL).

What Congress gets wrong about NSA surveillance practices

[Commentary] The heated debate in Congress about whether to reauthorize Section 215 of the Patriot Act has focused mainly on the National Security Agency's bulk collection of telephone records ever since details of that program were leaked to the press. As a member of the Privacy and Civil Liberties Oversight Board, an independent federal oversight agency, I extensively reviewed that program, including still-classified information about how it works. I believe it is critical that whatever Congress decides, this debate should be based on solid facts rather than rhetoric.

Many important facts and considerations have, unfortunately, not received sufficient attention.

  • First, the question before Congress is not whether to reauthorize or prohibit the bulk telephone records program that has garnered so much attention. It is whether to reauthorize Section 215 itself.
  • While it has been argued that the USA Freedom Act would both preserve the program’s core and mitigate privacy concerns by moving the storage of data from the government to the telephone companies, there are real questions about whether it would either preserve the program or protect privacy.

[Brand is a member of the US Privacy and Civil Liberties Oversight Board. Previously, Brand served as assistant attorney general for legal policy and as an associate counsel to President George W. Bush.]

House Communications and Technology Committee Approves Seven Bills to Open the FCC’s Doors to the American People

The House Subcommittee on Communications and Technology, chaired by Rep Greg Walden (R-OR), approved seven bills aimed at improving transparency and process at the Federal Communications Commission. Broadcasting and Cable reports that the markup featured some sparks between the chairman and ranking member, a passionate attack on the Supreme Court's Citizens United decision on money and politics, and Democratic amendments defeated on party line votes. While the Democratic-backed bills — which directed the FCC to publicize how it made decisions and the status of items — were approved on voice votes without contention, the Republican bills were strongly opposed.

The subcommittee advanced the following bills:

  1. A draft bill, authored by Rep. Doris Matsui (D-CA), that would require the FCC to coordinate with the Small Business Administration and issue recommendations to improve small business participation in FCC proceedings. The draft bill was approved by voice vote.
  2. A draft bill, Rep. David Loebsack (D-IA), that would require the chairman to post the commission’s internal procedures on the FCC website and update the website when the chairman makes any changes. The draft bill was approved by voice vote.
  3. A draft bill, authored by Rep. Yvette Clarke (D-NY), that would require the FCC to report quarterly to Congress and to post on the FCC website data on the total number of decisions pending categorized by bureau, the type of request, and how long the requests have been pending. The report also includes a list of pending Congressional investigations and an audited cost to the agency. The draft bill was approved by voice vote.
  4. A bill offered by Communications and Technology Subcommittee Vice Chairman Bob Latta (R-OH) would require the FCC to publish a list of items that are placed on delegated authority – that is, decided at the bureau level in lieu of a commission vote. The draft bill was approved by a vote of 16-12.
  5. A bill offered by Rep. Renee Ellmers (R-NC) would require the FCC to publish new rules on the same day that they are adopted. The draft bill was approved by a vote of 17-13.
  6. A bill offered by Rep. Adam Kinzinger (R-IL) would require the FCC to publish the draft of a rulemaking, order, report or any other action when it is circulated to the commissioners for a vote. The bill does not prevent the FCC from making changes to the item after it has been circulated, but it allows the public to see what the chairman is proposing to the rest of the commission. The draft bill was approved by voice vote.
  7. A discussion draft of the FCC Process Reform Act, authored by subcommittee Chairman Walden, Ranking Member Anna G. Eshoo (D-CA), and Rep. Adam Kinzinger (R-IL), that aims to increase transparency and predictability at the commission. The draft bill was approved by voice vote.

President Obama Nominated FCC Commissioner Rosenworcel for Another Term (updated)

President Barack Obama plans to renominate Federal Communications Commission Commissioner Jessica Rosenworcel to her post. Her current term expires this summer.

Commissioner Rosenworcel was nominated to her position in 2011. Before that, she was a top aide to the Senate Commerce Committee. She also advised former FCC commissioner Michael Copps earlier in her career. At the FCC she has been a strong proponent of boosting broadband deployment and speeds to schools and libraries and has supported FCC Chairman Tom Wheeler on key votes for new network neutrality rules and preempting state laws on municipal broadband. She also worked on incentive auction legislation while a Senate staffer, and has worked on its implementation as the FCC works through rules for the broadcast incentive auction.

Update:

Commissioner Jessica Rosenworcel issued the following statement :
“I am honored that the President has indicated his intent to nominate me for a new term as Commissioner at the Federal Communications Commission. During my tenure at the agency it has been a tremendous privilege to work with my colleagues, the talented staff of the Commission, and the American people to develop policies that expand access to modern communications and the opportunities of the digital age. I look forward to the United States Senate considering my nomination and the continuing opportunity to serve.”

FCC Chairman Tom Wheeler:
“Throughout her entire tenure in public service, Commissioner Rosenworcel has been a tireless advocate for increasing access to crucial telecommunications services and leveraging technology to improve people’s lives. It has been a privilege to serve alongside her, and I know the Commission will continue to benefit from her deep knowledge of the important issues before us and her thoughtful approach to the complex challenges we face.”

FCC Commissioner Mignon Clyburn:
"I congratulate my friend and colleague Jessica Rosenworcel on her renomination to a second term on the FCC. She has been a forceful advocate on E-rate, public safety, and spectrum policy and I look forward to continuing our work on behalf of the public interest and the American people."

FCC Commissioner Ajit Pai:
"I congratulate my colleague Commissioner Jessica Rosenworcel on the President’s announcement that she will be nominated to a second term at the FCC. Commissioner Rosenworcel and I joined the Commission on the same day, and she has been a dedicated advocate ever since on issues ranging from public safety to the importance of freeing up more unlicensed spectrum. I look forward to continuing to work with Commissioner Rosenworcel in the time to come."

FCC Commissioner Michael O'Rielly:
"It is with warmest congratulations that I greet the news of my colleague’s renomination. Commissioner Rosenworcel and I have worked together on a number of initiatives, and her insights are always much appreciated. I wish her all the best in the confirmation process."

FCC’s Incentive Auction Task Force Releases Initial Clearing Target Optimization Simulations

The Federal Communications Commission’s Incentive Auction Task Force provides the results of several staff simulations of the initial clearing target optimization procedure proposed in the Auction 1000 Comment Public Notice, modified as discussed below. Releasing this data will better enable interested parties to analyze issues related to the selection of an initial spectrum clearing target.

Preston Padden, who heads the Expanding Opportunities for Broadcasters Coalition (EOBC), said the simulations looked like progress. "It shows that the commission believes 126 MHz is achievable," he said. He also pointed out that the scenarios were run assuming 10% impairment, rather than 20%, and relaxed assumptions about Canada and Mexico. "We clearly have to analyze the data," he said. But it appears to be a positive development. EOBC represents broadcasters looking to give up spectrum in the auction at the right price and under the right circumstances. Since the FCC chose a variable band plan, which means it could collect different amounts of spectrum in different markets, some broadcasters will still be operating in spectrum shared with wireless and there will be some allowable threshold of interference. The lower the allowable interference — 10% rather than 20% — the more valuable the spectrum is.

FCC Commissioner Ajit Pai was not so sanguine about the simulations, including that the FCC commissioners were not allowed to vote on it, which he had requested. Commissioner Pai was concerned that the having proposed that the initial clearing target would assume that up to 20% of spectrum nationwide could be impaired, the FCC based its simulation on another figure. He also said the fact that the simulations did not take into account any interference from Mexican TV stations makes the data misleading and "far from reality."

Why we need a market-driven, consumer-focused revamp of the Lifeline program

[Commentary] The basic tenet of universal service – that the government should assist those who cannot afford basic access to the telecommunications network – has long been a cornerstone of the nation’s telecommunications policy. This assistance is justified by network effects: the larger the number of people a network reaches, the more valuable that network is to each user. Universal service also supports non-economic goals such as improved civic participation, enhanced economic opportunities, free speech, and public safety.

As the telephone gives way to the Internet as the nation’s primary telecommunications network, Congress must consider options to narrow the digital divide and assist low-income consumers who cannot afford basic network access. I advocate for a voucher-based approach to broadband universal service. America’s migration to broadband networks presents a once-in-a-generation opportunity to transform its existing telecommunications subsidy program, which is outdated, mismanaged, and unnecessarily complex. Of course, subsidizing access does not alone solve the digital divide—consumers face additional cost hurdles such as equipment costs, and there remain areas where broadband buildout is uneconomical. But a voucher-based broadband program would help bring Lifeline into the Internet era with market-driven incentives that promote consumer choice and competition, while avoiding some of the pitfalls of the existing regime.

[Lyons is an associate professor at Boston College Law School]

Bankruptcy Judge Approves Sale of RadioShack Name and Data

United States bankruptcy Judge Brendan Shannon cleared the way for RadioShack to sell its brand name and customer data to a Standard General affiliate for about $26 million, rejecting a competing bidder’s claim that the auction process was unfair. Separately, RadioShack resolved objections to the sale from several state attorneys general who were concerned the deal could threaten consumers’ privacy. Standard General agreed to limit its customer email access to the last two years, and to allow access to only seven of 170 fields of data RadioShack kept on its customers, said Ken Paxton, a lawyer for Texas’s attorney general. Standard General will receive names and addresses for 67 million customers, down from the 117 million initially sought.

Those matters were the last major hurdles to the bankrupt electronics chain’s plan to sell its intellectual property to General Wireless, the same Standard General affiliate that acquired 1,743 RadioShack stores in March.

Altice’s Deal to Buy Suddenlink May Be Prelude to Pursuit of Time Warner Cable

With its $9.1 billion acquisition of Suddenlink Communications, Altice established a small foothold in the United States cable market, gaining control of a distributor with only 1.5 million subscribers in 17 states. But the deal may have set the stage for Altice to go after an even larger and more tantalizing target: Time Warner Cable.

Altice, controlled by the French billionaire Patrick Drahi, has approached Time Warner Cable, the second-largest cable operator in the United States, about a potential deal, according to people with knowledge of the talks, who spoke on the condition of anonymity. One of the people cautioned that the talks were very preliminary and might not lead to a deal. The latest flurry of activity injects a new foreign player into the consolidation frenzy that has been sweeping through the American cable business for nearly two years. The maneuvering is likely to continue, potentially reshaping the television and broadband infrastructure in the United States.

Fox to Limit First GOP Primary Debate to Top-10 Candidates

Fox News Channel will limit the first 2016 Republican presidential debate to candidates who place in the top 10 of an average of the five most recent national polls. The limit will encourage the party’s second-tier candidates to improve their standing ahead of the Aug. 6 debate. Fox hasn’t decided which polls it will use. The network may invite more than 10 candidates, should there be a tie for 10th place. The rule could exclude as many as eight candidates. Already the party’s long-shot candidates have begun jockeying for inclusion in officially sanctioned debates.

CNN, which will air the second GOP debate Sept. 16 from California, will limit the numbers of participating candidates to 10, or possibly eight. But CNN is planning a second-tier candidates forum before the main debate. CNN will use an average of 13 polls conducted by major news organizations, universities and pollsters.