May 2015

Sen Markey, Reps Pallone and Eshoo on GAO Report on Broadband Performance

Senator Ed Markey (D-MA), and Reps Prank Pallone, Jr. (D-NJ) and Anna Eshoo (D-CA) released the following statement after the Government Accountability Office released the new report “BROADBAND PERFORMANCE: Additional Actions Could Help FCC Evaluate its Efforts to Inform Consumers”, which describes the difficultly for consumers in accessing accurate broadband performance information such as speed, reliability and availability. Sen Markey, then-Rep. Henry Waxman (D-CA) and Rep Eshoo originally requested the report in 2011. The GAO found that it is difficult for consumers to get accurate information about the performance of their broadband services because Internet service providers are not required to disclose this information in a standardized or easy-to-read format. The GAO also found that consumers are largely unaware of Federal Communications Commission reports on broadband performance partially because these reports are technical, do not include local information and are not directed at a general audience.

“Access to the Internet is no longer a luxury, it is a necessity to apply for jobs, complete homework, and communicate in the 21st century,” the lawmakers said. “Consumers need clear, easily accessible information about broadband speeds in order to decide which products and Internet service providers are best for them. The GAO points out that ISPs currently do not provide easy-to-understand data on broadband performance, and that the lack of a standardized format to disclose this data makes it difficult for consumers to compare between providers. We call on the FCC to work with ISPs to provide consumers with standardized, easy-to-read information about broadband performance, so that it is crystal clear what consumers are paying for when they buy Internet access. We ask the FCC to help consumers by providing them with accessible and useful information about broadband speeds and service.”

House, Senate Republicans square off over PATRIOT Act

House and Senate Republican leaders are locked in a standoff over one of the nation’s most controversial national security programs -- with each chamber refusing to budge, the clock ticking and patience running low. With key portions of the PATRIOT Act set to expire at the end of May, House Republicans are signaling they won’t accept anything other than their USA Freedom Act, which would end the National Security Agency’s bulk data collection program and passed the chamber by an overwhelming majority. But Senate Majority Leader Mitch McConnell (R-KY) has repeatedly panned that proposal, and his leadership team is indicating the only thing that can clear the chamber is a temporary extension of current law, which would extend the NSA program revealed by former contractor Edward Snowden.

On May 18, House Majority Leader Kevin McCarthy (R-CA) maintained the Senate had only one option: pass the House bill. “I think when you get 338 votes, we’re meeting somebody in the middle,” Majority Leader McCarthy told reporters. “When you can get the Republicans and Democrats beyond veto-proof...I think that’s a great bill for the Senate to take.”

How the battle for the future of the Web is shaped by economics

There are two stories people are trying to tell right now about the future of the Internet. One is that we need some basic rules to make sure the Web remains open and free so that companies that depend on the Internet can grow. The other is that strict rules will discourage Internet providers from making the investments that will enhance the network for everybody. Whichever narrative wins out will go a long way toward determining what your online experience will look like in the years to come.

Although the Federal Communications Commission approved a historic set of network neutrality regulations in February, Internet providers are trying to overturn those rules in court. And if they can convince judges that the rules will cause irreparable damage to their business, the Internet providers will get a major leg up on the FCC. To bolster that case, some economists are turning to historical data about what the industry spent on infrastructure over the last couple decades. The result is a game of correlation, with one side trying to prove that regulation had little effect on investment and the other side trying to prove that it did. If you boil it down, it's a disagreement over the Internet's basic origin story. And both sides are essentially accusing each other of historical revisionism. How aggressively we regulate Internet providers will be shaped by this ideological battle. As more of our media and communications move to the Web, expect these themes to come up again and again.

The Internet is running out of room -- but we can save it

Are we running out of Internet? It might sound like an odd question, but researchers met at the Royal Society in London to discuss a coming Internet "capacity crunch", and what we might do about it. The meeting sparked headlines warning of a "full" Internet and the potential need for data rationing, but the reality is more nuanced. The crunch is real, caused by fast growth of online media consumption through the likes of Netflix and Youtube, but physics and engineering can help us escape it. The Internet just needs a few tweaks.Techniques like investing in new types of fiber will be key to fighting capacity crunch. But if researchers aren't able to scale up and commercialise their solutions, rationing or other restrictions on Internet use may be the only option. "I don't see a crisis in the internet," said Andrew Lord, a researcher at UK telecommunications company BT. "I've got a lot of faith in the ingenuity of people to keep delivering the goods," he said.

Major Broadcast Groups Push 126 MHz Auction Target

Some major broadcasters are telling the Federal Communications Commission that they will need the commission to set a spectrum-clearing target before the incentive auction in order to better decide whether or not to participate. According to an ex parte filing with the FCC, representatives of Fox, Ion, Tribune and Univision met with FCC officials to make the point that if the FCC wants to maximize broadcasters participation in the auction -- it does -- it should set a target of 126 MHz (on the high end of the FCC's estimation of what it could clear) and do so before the deadline for applications for the auction, which would mean by the end of 2015 -- the auction is targeted for early 2016. The more spectrum the FCC tries to get, the more money it will have to pay broadcasters to get it. The groups collectively represent stations that amount to more than 5 billion MHz pops of broadcast spectrum (the FCC values spectrum using the "per pop" measure, a calculation based on the population reached and value of the spectrum), including in markets where wireless demand is high.

End secret sponsors of political advertisements

[Commentary] Californians know the power of transparency in politics. Our state laws require campaign advertisements to include the disclosure of their true sponsors. It's why in 2010, when voters learned who actually was sponsoring political TV ads in support of a state ballot initiative to weaken greenhouse gas emission rules -- two major oil companies -- they rejected it by a 23 percent margin. As the 2016 Presidential campaigns commence, the entirety of the American electorate has a right to be just as empowered. Voters are sickened spectators to the corrosion of our democracy by moneyed interests following the Supreme Court's devastating decisions in Citizens United and McCutcheon. The decisions struck down virtually all limits on the amount of money that can be spent on campaigns without any effective disclosure regime in place. For a large portion of political spending, the American public has no way of knowing who is putting up the money or how much they're spending.

House Democratic members have introduced legislation to require the Federal Communications Commission to update its interpretation of disclosure rules to reflect the original intent of Congress. It's called the Keeping Our Campaigns Honest (KOCH) Act (yes, like the Koch brothers who've infamously promised to funnel $900 million into the 2016 presidential campaign). The bill, which I am cosponsoring, would shine a light on the true sponsors of political ads that flood the nation's airwaves. The lack of transparency in politics is harming our democracy, breeding even more mistrust in government, and depressing voter participation. The public has a right to know who is persuading them over the public airwaves, and the FCC should honor that right.

[Rep Anna Eshoo (D-CA) is Ranking Member of the House Communications and Technology Subcommittee]

Bringing the Personal Internet of Things to the Poor

The timing and technology are right to bring the power of digital sensing to the poor to improve health, safety and education. That is the animating assumption behind a new project announced on May 19. The initiative is led by Unicef and ARM, the British chip designer whose microprocessors power most smartphones and tablets. They are being joined by Frog, the San Francisco-based design firm, along with people described as coaches and advisers from companies and organizations including Google, Orange, Singularity University, the Red Cross and the Senseable City Lab at the Massachusetts Institute of Technology.

The long-term ambition is to jump start an industrial ecosystem for sensing and data technology that serves the needs of mothers and children in developing nations. The project, called Wearables for Good, is beginning with a contest to generate ideas. Applications can be submitted online on the project’s website until August 4. Two winners will be selected in the fall 2015. Each will receive $15,000, and assistance and advice from ARM, Frog and others on translating their ideas into a product and perhaps a company. The online application lists the required characteristics for device ideas. They should be, according to the form, “cost-effective, rugged and durable, low-power and scalable.” The form offers no price limits, but it is safe to assume the project is looking for devices priced far less than an Apple Watch or a Fitbit device.

Some People Do More Than Text While Driving

Phones are getting smarter, drivers seemingly less so. A survey shows that many motorists have expanded their behind-the-wheel activities beyond texting to include using Facebook, Snapchat and Twitter, taking selfies and even shooting videos. The survey was commissioned by AT&T, itself a phone company, but one that has invested heavily in discouraging distracted driving through its “It Can Wait” public service campaign. The telephone survey was conducted by Braun Research, which polled 2,067 people who own a smartphone and drive at least once a day.

The survey found that 27 percent of drivers age 16 to 65 report using Facebook, and 14 percent report using Twitter. Of those, a startling 30 percent who said they post to Twitter while driving do it “all the time.” “One in 10 say they do video chat while driving. I don’t even have words for that,” said Lori Lee, AT&T’s senior executive vice president for global marketing. The survey found, 17 percent take selfies, perhaps a fitting metaphor for ignoring everyone else on the road. The survey also found that texting remains the most prevalent activity, reported by 61 percent of drivers, followed by 33 percent who e-mail and 28 percent who surf the Internet. More than 10 percent use Instagram and Snapchat.

Powering Up: The campaign to teach computer science to a digital nation

Code.org, the non-profit organization that has gotten children as young as five years old to try computer coding, has joined with the College Board to try to expand computer education in US public schools, particularly to girls and minorities. Seattle (WA)-based Code.org, founded by two tech entrepreneurs, and the College Board, the New York-based non-profit that administers the SAT and Advanced Placement tests, are offering to help 35 of the country’s largest school districts teach new computer science classes. Too many students, particularly girls and teens of color, attend high schools that do not teach computer science, or they are not encouraged to take those classes if they are offered, said Hadi Partovi, a co-founder of Code.org.

Of the students in the high school class of 2014 who took the PSAT, more than 165,000 girls showed the capacity to learn computer science but just 2.5 percent enrolled in the AP Computer Science course and exam, according to the College Board. Thirty-three thousand African American and Hispanic students also showed aptitude for computer science, but just 4.7 percent took the AP course. To try to broaden the appeal of computer science, Code.org has designed a new AP Computer Science Principles class for the College Board that will be piloted in the fall and offered nationwide in 2016.

The rural-urban divide on broadband adoption and pricing: Fact or fiction?

[Commentary] Much has been made in social, economic and policy commentary about a broadband divide between rural and urban communities, and the implications this divide may have on the abilities of both individuals and communities to prosper in a digital society. Variations in broadband adoption rates between rural and urban communities have served as the basis for calls to politicians and regulators to “do something” to redress the balance. In particular, many have pushed for policymakers to address discrepancies in consumer prices between the two camps. Surely, the argument goes, if everyone paid the same price, then adoption would equalize, and the divide would be closed? If only it was that easy.

The bottom line is that broadband adoption is complicated, and that price is only one of its many determinants. When regulators are facing a problem where the root causes are ill-defined (or perhaps the problem is even non-existent and simply a statistics-mirage), a high degree of regulatory humility becomes important. In the case of rural broadband adoption, the best strategy is likely for lawmakers to focus on lowering the barriers to entry for private broadband providers, and let them explore the markets and related challenges.

[Bronwyn Howell is general manager for the New Zealand Institute for the Study of Competition and Regulation]