May 19, 2015 (Lifeline Where Did It Come From?/Where Is It Going?)
BENTON'S COMMUNICATIONS-RELATED HEADLINES for TUESDAY, MAY 19, 2015
Check Out Upcoming Events On Our Calendar: https://www.benton.org/calendar
LIFELINE
Lifeline -- Where Did It Come From? - Digital Beat Blog
Lifeline – Where Is It Going? A Community Perspective - Digital Beat Blog
PRIVACY/SECURITY
The Senate Is About to Decide the Future of NSA Spying
Time crunch pushes Senate to edge of surveillance cliff [links to web]
Privacy promises and bankruptcy: The latest letter - FTC press release [links to web]
Facebook's Internet.org accused of creating insecure Web [links to web]
Telecom, Cable Home Security: Report Sees “Serious Dislocation” Coming [links to web]
Tech giants don’t want President Obama to give police access to encrypted phone data [links to web]
INTERNET/BROADBAND
North Carolina sues FCC for right to block municipal broadband
AT&T’s ‘GigaPower’ Plays Nashville [links to web]
AT&T's Stephenson: Google Fiber 'changed the game' for broadband buildout, but Title II rules could stall efforts [links to web]
If you could print out the whole Internet, how many pages would it be? [links to web]
Graphing broadband adoption around the world - AEI op-ed [links to web]
NETWORK NEUTRALITY
Ad-blocking technology poised to make mobile Net less neutral - Jon Healey editorial
Bait-and-Switch -- Or Why the FCC's 'Virtuous Circle' Theory is Nonsense - Phoenix Center op-ed
TELEVISION
NAB: Forced Spectrum March Would Be Illegal
Cable companies could escape local rate regulation under FCC proposal [links to web]
NAB's Smith: We Want Successful Auction 'In Rearview Mirror' [links to web]
CONTENT
YouTube's toddler app full of disturbing videos, say child advocates who want FTC to investigate
Over-the-Top Providers May Be Missing Key Revenues [links to web]
Snapchat and Periscope: A Grown-Up’s Guide - analysis [links to web]
Why the New York Times and other papers had to partner with Facebook - op-ed [links to web]
TELECOMMUNICATIONS
Verizon's New Jersey legacy phone services poised for deregulation [links to web]
WIRELESS/SPECTRUM
NAB: Forced Spectrum March Would Be Illegal
Another Thing to Never Settle for: Rigged Spectrum Auctions - press release [links to web]
Google touts Spectrum Access System for 3.5 GHz spectrum management [links to web]
Will a Scramble for Airwaves Dent Talking Cars? [links to web]
EMERGENCY COMMUNICATIONS
FirstNet deems 'Industry Day' a success as financial challenges loom - press release [links to web]
OWNERSHIP
Charter and Bright House Pursuing Merger Even After Comcast’s Failed Deal [links to web]
AT&T CEO: No DirecTV merger call this week
DirecTV, AT&T Extend Merger Termination Date [links to web]
COURT CASE
Controversial 'Innocence of Muslims' Ruling Reversed By Appeals Court
Samsung gets partial victory over Apple in iPhone patents case appeal
GOVERNMENT & COMMUNICATIONS
Introducing @POTUS: President Obama's Twitter Account - White House press release [links to web]
Economic Innovation Group bolsters lobbying power [links to web]
Apple CEO warns against ‘cynicism’ in Washington - Apple CEO speech [links to web]
ELECTIONS & MEDIA
Hillary Clinton was paid millions by tech industry for speeches [links to web]
Snapchat is going to be huge in 2016 -- and regulators have no idea how to handle it
Snapchat and Periscope: A Grown-Up’s Guide - analysis [links to web]
STORIES FROM ABROAD
UK government quietly rewrites hacking laws to give GCHQ immunity
Graphing broadband adoption around the world - AEI op-ed [links to web]
LIFELINE
LIFELINE -- WHERE DID IT COME FROM?
[SOURCE: Benton Foundation, AUTHOR: Andrew Jay Schwartzman]
[Commentary] Lifeline telecommunications services have long generated controversy, but over the last few years, critics have been especially vociferous, railing against what they have termed “Obamaphones,” wireless phones with modest free service allotments provided to low income users. (As discussed below, and as this snopes.com explainer says, the term is a misnomer in that the Lifeline program dates to the 1980's and it was expanded to wireless during the George W. Bush Administration.) In the coming weeks, the Federal Communications Commission will likely launch a proceeding considering a number of changes to its Lifeline Assistance program (Lifeline), including an expansion of its coverage to broadband services. Therefore, this is a good time to review the history and legal underpinnings of Lifeline, and how the “Obamaphone” came into being.
benton.org/headlines/lifeline-where-did-it-come | Benton Foundation
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LIFELINE – WHERE IS IT GOING?
[SOURCE: Benton Foundation, AUTHOR: Angela Siefer]
[Commentary] The National Digital Inclusion Alliance is comprised of local community organizations, public libraries and other institutions that are working hard to increase broadband access and digital skills among our neighbors. To improve the daily lives of all community members, we call for public policies for digital inclusion that reflect what we've learned from experience. We offer this expertise to the Federal Communications Commission to aid the reform and modernization of Lifeline. The Internet is a tool that many of us use every day – to work, to locate information, to correspond, to shop, and to play. In the bigger picture, the Internet is a tool that can help us to achieve things like strengthening our communities, creating more responsive and efficient government, and keeping our economy moving. Civic participation, education, health care delivery, economic growth, worker training, and public safety are all among the key national purposes that Congress, in the American Recovery and Reinvestment Act, said broadband should support.
[Angela Siefer is the Director of the newly formed National Digital Inclusion Alliance, a unified voice for local technology training, home broadband access and public broadband access programs.]
https://www.benton.org/blog/lifeline-where-it-going-community-perspective
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PRIVACY/SECURITY
THE SENATE IS ABOUT TO DECIDE THE FUTURE OF NSA SPYING
[SOURCE: National Journal, AUTHOR: Dustin Volz]
Will Senate Majority Leader Mitch McConnell (R-KY) be moved? That's the question the Senate is asking itself as it enters its last legislative week before key provisions that authorize some of the government's sweeping domestic surveillance powers are due to lapse at the end of May. And if May 17 is any indication, the answer is clear: No, not a chance. "This has been a very important part of our effort to defend the homeland since 9/11," Majority Leader McConnell said on ABC's This Week. "We know that the terrorists overseas are trying to recruit people in our country, to commit atrocities in our country. You saw a great example of just what I'm talking about in the Boston Marathon massacre. I don't want us to go dark, in effect." Majority Leader McConnell hasn't flinched from his position that a full reauthorization of the Patriot Act's three expiring spy provisions -- including Section 215, the legal edifice the National Security Agency uses to justify its bulk collection of US call data -- is necessary to keep Americans safe and thwart terrorist plots. Majority Leader McConnell's intransigence has been unbowed despite an apparent groundswell of support over the past month in favor of NSA reform.
benton.org/headlines/senate-about-decide-future-nsa-spying | National Journal
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INTERNET/BROADBAND
NORTH CAROLINA SUES FCC FOR RIGHT TO BLOCK MUNICIPAL BROADBAND
[SOURCE: ars technica, AUTHOR: Jon Brodkin]
North Carolina has sued the Federal Communications Commission so it can continue enforcing a state law that prevents municipal broadband networks from expanding. Three months ago, the FCC preempted such laws in both North Carolina and Tennessee. Tennessee filed a lawsuit to save its municipal broadband restrictions in March, and North Carolina has now done the same in a petition filed to the US Court of Appeals for the Fourth Circuit. "Despite recognition that the State of North Carolina creates and retains control over municipal governments, the FCC unlawfully inserted itself between the State and the State’s political subdivisions," North Carolina Attorney General Roy Cooper wrote to the court. Attorney General Cooper claimed the FCC's action violates the US Constitution; exceeds the commission's authority; "is arbitrary, capricious, and an abuse of discretion within the meaning of the Administrative Procedure Act; and is otherwise contrary to law."
benton.org/headlines/north-carolina-sues-fcc-right-block-municipal-broadband | Ars Technica
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NET NEUTRALITY
SHINE AND NETWORK NEUTRALITY
[SOURCE: Los Angeles Times, AUTHOR: Jon Healey]
[Commentary] Having trouble seeing the link between the Verizon-AOL deal and the need for net neutrality regulations? Some new reporting by the Financial Times should help clear things up for you. The FT's Robert Cookson revealed that at least one major European mobile network is planning to use technology from Shine, an Israeli startup, to block ads from showing up on mobile-phone browsers. The technology can stop ads on web pages and most apps transmitted through the cellular network. The idea is remarkably anti-competitive, not to mention disruptive to a key business model for free content online. One can only imagine the conversations between a mobile-phone operator using Shine's ad-blocking technology and a major brand or online advertising network: "That's a real nice display ad you've got there. I'd hate to see anything bad happen to it on my network." Verizon and every other major ISP is challenging the neutrality rules in court, arguing among other things that the Federal Communications Commission exceeded its statutory authority. The courts will eventually decide if it did. In the meantime, the evidence mounts that ISPs may no longer be content to deliver content to their subscribers without making their mark on it.
benton.org/headlines/ad-blocking-technology-poised-make-mobile-net-less-neutral | Los Angeles Times
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BAIT-AND-SWITCH -- OR WHY THE FCC'S 'VIRTUOUS CIRCLE' THEORY IS NONSENSE
[SOURCE: Bloomberg, AUTHOR: Dr George Ford]
[Commentary] For the past ten years, the Federal Communications Commission has struggled to write legally-defensible net neutrality rules. This March, under heavy political pressure from the White House, the FCC voted out another set of rules, this time invoking the proverbial ‘‘nuclear option’’ of reclassifying both wire-line and wireless broadband Internet access as a Title II common carrier telecommunications service. As to be expected, the appeals process (for the third time) is now underway in earnest. While the various legal infirmities of the FCC’s arguments are well-documented, absent from the discussion has been any analysis of the Commission’s central economic justification for its radical intervention into the market -- namely, the Commission’s theory of a ‘‘virtuous circle’’ or ‘‘virtuous cycle’’ of investment. As I show below, while many take the Commission’s ‘‘virtuous circle’’ theory as accepted Gospel, the truth is that the Commission, in fact, adopted what I would describe as an ‘‘un-vituous circle’’ theory of investment under which profit-maximizing firms will do things willingly and knowingly to reduce the demand for their products, which will somehow lead to increased profits, which in turn will lead to reduced broadband investment. As the Commission’s logical flow cannot be squared with the plain language of the Commission’s depiction of the "virtuous circle’’ (or likely any plausible economic model either), the Commission’s core economic rationale for imposing Title II regulation on the Internet rests on shaky ground.
[Dr. George S. Ford is a co-founder of the Phoenix Center and currently serves as its Chief Economist]
benton.org/headlines/bait-and-switch-or-why-fccs-virtuous-circle-theory-nonsense | Bloomberg
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TELEVISION
NAB: FORCED SPECTRUM MARCH WOULD BE ILLEGAL
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
The National Association of Broadcasters continued to press the Federal Communications Commission not to set a hard 39-month deadline for all stations to move to new channels after the post-incentive auction repack, saying it would be illegal to force them off due to circumstances beyond their control. That came as the FCC circulated an order denying various proposals to reconsider that framework, including one by the Big Four broadcast network affiliate associations (they took the lead on the issue at the FCC while NAB sued parts of the auction in federal court) challenging the deadline and saying it "cannot be squared with the Spectrum Act’s mandate to make all reasonable efforts to protect stations’ coverage areas and populations served." In a meeting with top FCC officials, NAB executive VP and general counsel Rick Kaplan and other NAB executives also pressed their other main point, which is that treating the statutory $1.75 billion in moving expenses as a hard cap rather than a budget will have "a significant effect on broadcasters’ ability to relocate to their new channel assignments." According to an FCC filing outlining the meeting, NAB is arguing that the FCC should plan to clear no more spectrum than it can clear while fully compensating broadcasters for the move.
benton.org/headlines/nab-forced-spectrum-march-would-be-illegal | Broadcasting&Cable | TVNewsCheck
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CONTENT
YOUTUBE KIDS CONTENT
[SOURCE: San Jose Mercury News, AUTHOR: Matt O’Brien]
Consumer groups compiled a disturbing dossier of the YouTube Kids app's content and will ask the Federal Trade Commission to investigate Google's app for unfair and deceptive business practices, the second such complaint filed since the kid-centric video service launched in February. "The deeper you get into this, the scarier it is in placing children at risk," said Dale Kunkel, a communications professor at the University of Arizona. "I'm astonished at the volume of inappropriate material, much of which will be harmful for kids if they see it." Google said that it works to make the app's videos "as family-friendly as possible" and takes feedback very seriously, removing inappropriate videos flagged by users. In an interview shortly after introducing YouTube Kids, its product manager, Shimrit Ben-Yair, said that the mobile app uses a "two-step process" to select kid-friendly content from the 300 hours of video uploaded to YouTube each minute. The first step is to "algorithmically narrow it down to family-friendly content," she said. The second involves Google employees doing a "manual sampling for quality control, to see if it's family-friendly." But that filter is not working, according to advocates and some parents who wrote reviews on the Google Play and iTunes stores documenting how their children discovered violent, sexually explicit or other jaw-dropping content.
benton.org/headlines/youtubes-toddler-app-full-disturbing-videos-say-child-advocates-who-want-ftc-investigate | San Jose Mercury News | WashPost
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OWNERSHIP
AT&T CEO: NO DIRECTV MERGER CALL THIS WEEK
[SOURCE: The Hill, AUTHOR: David McCabe]
The CEO of AT&T, Randall Stephenson, said that he doesn’t expect the Federal Communications Commission to announce a decision on the company’s merger with DirecTV the week of May 18. "What’s happened right now as you know is there was a stay request for the Title II rules that was filed last week by the industry and the judge put a pretty tight time horizon on the FCC to respond to that so that’s probably going to take a lot of their attention over the next week or two,” said Stephenson, noting that the deadline for the FCC to respond to the stay request for the network neutrality rules was on May 15. "So there’s not going to be a lot done over the next week on anything other than Title II,” he said.
benton.org/headlines/att-ceo-no-directv-merger-call-week | Hill, The
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COURT CASE
CONTROVERSIAL 'INNOCENCE OF MUSLIMS' RULING REVERSED BY APPEALS COURT
[SOURCE: Hollywood Reporter, AUTHOR: Eriq Gardner]
On May 18th, the 9th Circuit Court of Appeals took another shot at Cindy Lee Garcia's dispute with Google over whether YouTube must remove "Innocence of Muslims" and chose to reverse its prior holding by deciding against a preliminary injunction. The actress claims that when she agreed to appear in the movie, she didn't know that she was signing up for an anti-Islamic film. She says she signed no waivers and held on to the copyright of her performance. After a trailer of the film was released and sparked worldwide protests, Garcia received death threats, and so she sent a takedown notice to YouTube. In February 2014, 9th Circuit chief Judge Alex Kozinski stunned many in the industry by determining that Garcia could assert a copyright interest in her performance in the film and that a federal judge was wrong to find against her injunction motion. The decision caused an outcry, especially among tech companies who worried that the decision could empower bit performers and other contributors to copyrighted work to assert their own authorship rights and enjoin anything they didn't like. Today, after the case was reviewed by a fuller panel of judges en banc, the appeals court agrees that Kozinski's decision can't stand. As a result, "Innocence of Muslims" may soon reappear on YouTube.
benton.org/headlines/controversial-innocence-muslims-ruling-reversed-appeals-court | Hollywood Reporter
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SAMSUNG GETS PARTIAL VICTORY OVER APPLE IN IPHONE PATENTS CASE APPEAL
[SOURCE: Los Angeles Times, AUTHOR: Paresh Dave]
The nearly $1 billion awarded to Apple by a jury in a trademark and patent case against Samsung Electronics just got sliced by about 40 percent. An appeals court rejected a big chunk of the $929 million Apple was expecting to receive. By Samsung's estimates, it should now owe only $547 million, though the final judgment will be decided by a lower court. Samsung did violate several patents but did not dilute iPhone design elements that could not be protected under trademark law, the US Court of Appeals for the Federal Circuit said. Apple had argued that the iPhone’s rectangular design was part of a trade dress, a legal term for design features that communicate who made the product. But features that are functional can’t be protected, and Apple failed to show that the look of the iPhone screen or its shape were not functional, the appeals court found. The jury had also found that Samsung violated several Apple user-interface patents, including pinch-and-zoom gestures. The appellate ruling is a partial victory for Samsung, which had also sought to reduce claims to only profits attributable to the features covered in the infringed patents as opposed to total profits. Apple and Samsung remain the world’s top two smartphone makers but both have been slightly undercut by smaller rivals in the two years since the case was first heard. Apple said in a statement that it was pleased the ruling was only a partial setback. "This case has always been about more than money," Apple stated. "It’s about innovation and the hard work that goes into inventing products that people love, which is hard to put a price on.”
benton.org/headlines/samsung-gets-partial-victory-over-apple-iphone-patents-case-appeal | Los Angeles Times
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ELECTIONS & MEDIA
SNAPCHAT IS GOING TO BE HUGE IN 2016 -- AND REGULATORS HAVE NO IDEA HOW TO HANDLE IT
[SOURCE: Fusion, AUTHOR: Brett LoGiurato]
As he gears up for a Presidential run, former Gov Martin O’Malley (D-MD) held a conference call with donors and supporters, informing them that he would make some kind of announcement on May 30. He also had a message -- and an exclusive photo -- for his followers on Snapchat. “Stay tuned for May 30th…” he said, referring to the date when he’ll announce whether or not he’ll challenge former Secretary of State Hillary Clinton for the Democratic nomination. O’Malley, who is widely expected to run, is one of a handful of politicians experimenting with Snapchat, a messaging app that has exploded in popularity over the past year. O’Malley’s team has found it useful -- along with the streaming app Periscope -- to engage a broad audience. They’ll post candid photos and videos of O’Malley’s impromptu guitar-playing on the stump, for example. For its part, the Federal Election Commission sounds quite unsure how and if it would attempt to regulate not just Snapchat, but any app. Julia Queen, a spokeswoman for the FEC, said that the commission has “Internet regulations but they don’t specifically cover apps.” The commission has also issued advisory opinions -- which Queen said is “its official response to a question about how federal campaign finance law applies to a specific factual situation” -- on issues arising from text messages and campaigns. The potential challenge here for the FEC, Ryan said, would come in enforcement. If someone wants to break the rules via Snapchat, how would anyone know? “That Snapchats do disappear could present an interesting enforcement challenge for the FEC,” Ryan said. “You can subpoena e-mail. Tweets are public. You can examine archived records. That seemingly would not be the case with Snapchat.”
benton.org/headlines/snapchat-going-be-huge-2016-and-regulators-have-no-idea-how-handle-it | Fusion
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STORIES FROM ABROAD
UK GOVERNMENT QUIETLY REWRITES HACKING LAWS TO GIVE GCHQ IMMUNITY
[SOURCE: ars technica, AUTHOR: Sebastian Anthony]
The United Kingdom government has quietly passed new legislation that exempts the Government Communications Headquarters (GCHQ), police, and other intelligence officers from prosecution for hacking into computers and mobile phones. While major or controversial legislative changes usually go through normal parliamentary process (i.e. democratic debate) before being passed into law, in this case an amendment to the Computer Misuse Act was snuck in under the radar as secondary legislation. According to Privacy International, "It appears no regulators, commissioners responsible for overseeing the intelligence agencies, the Information Commissioner's Office, industry, NGOs or the public were notified or consulted about the proposed legislative changes... There was no public debate." Privacy International also suggests that the change to the law was in direct response to a complaint that it filed in 2014. In May 2014, Privacy International and seven communications providers filed a complaint with the UK Investigatory Powers Tribunal (IPT), asserting that GCHQ's hacking activities were unlawful under the Computer Misuse Act. On June 6, just a few weeks after the complaint was filed, the UK government introduced the new legislation via the Serious Crime Bill that would allow GCHQ, intelligence officers, and the police to hack without criminal liability. The bill passed into law on March 3 in 2015, and it went into effect on May 3. Privacy International says there was no public debate before the law was enacted, with only a rather one-sided set of stakeholders being consulted (Ministry of Justice, Crown Prosecution Service, Scotland Office, Northern Ireland Office, GCHQ, police, and National Crime Agency).
benton.org/headlines/uk-government-quietly-rewrites-hacking-laws-give-gchq-immunity | Ars Technica
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