May 2015

PRIVACY/SECURITY

POST-SNOWDEN, NSA CRAFTS NEW PLAN TO PROTECT NATIONAL SECRETS
[SOURCE: nextgov, AUTHOR: Mohana Ravindranath]
In the aftermath of Edward Snowden's revelations, the National Security Agency has "reached a point where a single individual can cause catastrophic harm," said NSA's first chief risk officer, Anne Neuberger. Named CRO last September, Neuberger described the philosophy behind NSA's nascent risk management framework, saying it's a system that measures the risks of each decision and each program. The agency has been developing its own framework over the past several months, and "building a common definition of what low, medium and high risk means" and that the value of a program's mission "always exceeds that risk." The framework could include principles such as not putting an employee's life at risk "without X approval, without Y value determinant," she said. It could also help employees assess, and potentially mitigate, the risk of sharing sensitive information. Being transparent with employees about that kind of framework shows employees "the way we as an enterprise value you, the value of your work, [and] how we approach that value." The agency should then continually assess, and re-assess that framework, Neuberger said. A risk management framework might also pay more attention to risk indicators that could tip them off to potential problems, Neuberger said. She noted, for instance, an influx of letters to Congress about the Department of Veterans Affairs -- mostly from veterans complaining about extended wait times and lack of care -- indicated that some programs were at risk of failing.
benton.org/headlines/post-snowden-nsa-crafts-new-plan-protect-national-secrets | nextgov
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REP HOYER: SENATE WOULD BE 'WISE' TO END NSA DATA COLLECTION
[SOURCE: The Hill, AUTHOR: Mike Lillis]
House Minority Whip Steny Hoyer (D-MD) is urging Senate leaders to end the government's bulk collection of phone records. Minority Whip Hoyer said Senate Majority Leader Mitch McConnell (R-KY) should scrap plans to extend existing provisions of the Patriot Act -- including the controversial language used by the National Security Agency (NSA) to justify its controversial surveillance program -- and instead adopt the bipartisan House bill that ends the bulk collection. "I don't know what the Senate's going to do, but I think the House is going to pass a bipartisan bill which I think has broad support and the Senate would be, I think, wise to take that up and pass it," Minority Whip Hoyer said. "The House version is a good model for the Senate to follow, and I would hope they would do it." Minority Whip Hoyer said he's hoping the US Court of Appeals ruling on NSA surveillance will make the House bill "more palatable" in the eyes of lawmakers like Majority Leader McConnell as they work to extend the Patriot Act ahead of the June 1 deadline. "The court decision has got to have made … somewhat of an impact on his thinking," he said. "It should have."
benton.org/headlines/rep-hoyer-senate-would-be-wise-end-nsa-data-collection | Hill, The
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THE 'PRIVACY COALITION' THAT WANTS TO TRIM DATA REGULATIONS FOR TELECOM GIANTS
[SOURCE: National Journal, AUTHOR: Brendan Sasso]
The "21st Century Privacy Coalition" might sound like the name of a group fighting for stronger privacy protections in the Internet age. But, in fact, it represents some of the nation's largest cable and phone companies, and is working to help those companies escape regulations on how they have to handle customer data. If the group gets its way, Congress would loosen regulations for how companies have to protect sensitive information -- such as what phone numbers you've sent text messages to, what you've watched on television, and potentially even what websites you've visited. The group is led by Mary Bono, a former Republican congresswoman from California, and Jon Leibowitz, a former Democratic chairman of the Federal Trade Commission. Funded by Comcast, AT&T, Verizon, Time Warner Cable, DirecTV, and industry trade associations, the coalition has spent nearly $2 million on lobbying, according to disclosure records. That money has gone to hire lobbyists from two firms: Mayer Brown and Ryan, MacKinnon, Vasapoli, and Berzok. It has essentially one goal: pass the Data Security and Breach Notification Act. The bill, which cleared the House Energy and Commerce Committee in April, is intended to combat the kinds of massive hacks of personal information that have hit Target, Home Depot, and other companies in recent years. President Barack Obama even urged Congress to act on the issue during 2015's State of the Union address. The House legislation, authored by Rep Marsha Blackburn (R-TN) and Rep Peter Welch (D-VT), would require companies to have "reasonable" security and to notify their customers if their personal information is stolen. The bill generally just covers information that could be used for fraud, such as credit card or Social Security numbers. The 21st Century Privacy Coalition argues that it doesn't make sense for the telecommunications companies to have to comply with a whole separate regulatory regime. So, at its urging, lawmakers included language in the bill that would exempt companies from Federal Communications Commission regulations related to protecting personal information. Like retailers and other businesses, the telecom companies would only have to comply with the "reasonable" security standard enforced by the FTC.
benton.org/headlines/privacy-coalition-wants-trim-data-regulations-telecom-giants | National Journal
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FCC REFORM

SENATE APPROPRIATIONS HEARING
[SOURCE: Benton Foundation, AUTHOR: Kevin Taglang]
The Senate Committee on Appropriations’ Subcommittee on Financial Services and General Government held a hearing on May 12 to review the Fiscal Year 2016 funding request and budget justification for the Federal Communications Commission. FCC Chairman Tom Wheeler testified along with FCC Commissioner Ajit Pai. A fun time was had by all.
As might be expected, network neutrality played a central role during the hearing. In his opening remarks, Subcommittee Chairman John Boozman (R-AK) said, “With the FCC’s embrace of the President’s plan for Internet regulation, the Commission moved farther and farther away from the independence, transparency, and regulatory certainty our nation deserves.” Chairman Boozman also criticized the FCC’s budget proposal which includes a transfer of $25 million from the Universal Service Fund to help offset the costs of FCC oversight of the fund. “Many people in Arkansas think the FCC has forgotten about rural America. Transferring money away from broadband deployment to offset agency spending in DC aggravates that all-too-real perception,” Chairman Boozman said.
Commissioner Pai said he believed that the panel should not provide funds for the FCC to implement new Open Internet/net neutrality rules. “The commission will spend a lot of money and time applying regulations that are wasteful and unnecessary and that are already proving harmful to the American public,” he said. Commissioner Pai also repeated his argument that the order allows the agency to regulate the rates companies can charge for services. But Chairman Wheeler replied, “Our goal is not to have rate regulation,” and the 201b interpretation that some people have said this gives us some kind of ex post authority, I would like to be able to make it clear that it is not a rate-regulation tool,” he said. He demurred when asked whether the rule would allow the FCC to regulate the so-called interconnection rates Internet providers negotiate with the companies that run the backbone of the Internet. Chairman Wheeler also declined to estimate the litigation costs associated with the net neutrality order. He said that any litigation would be handled by the agency internally, rather than by hiring an expensive outside appellate lawyer like former Solicitor General Theodore Olson.
benton.org/headlines/senate-appropriations-committee-reviews-fccs-2016-budget-request | Benton Foundation | Chairman Boozman | Chairman Wheeler | FCC 2016 Budget Request | Commissioner Pai | The Hill | B&C
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FCC CHANGING NAME OF WIRELESS DIVISION
[SOURCE: Multichannel News, AUTHOR: John Eggerton]
Apparently, the Federal Communications Commission is planning to change the name of the Wireless Bureau's Spectrum And Competition Policy division to the Competition and Infrastructure Policy division. That is to reflect the division's increasing focus on infrastructure. and the work it already does in that area, but is not a signal of any less attention to spectrum, particularly as regards transactions and competition policy. Other divisions without spectrum in their names, mobility, broadband, auctions, have plenty to do with spectrum without including them in the moniker. Not surprisingly, PCIA-The Wireless Infrastructure Association was quick to applaud the move. " The new name reflects this Commission’s commitment to strengthening wireless infrastructure deployment," said PCIA President Jonathan Adelstein, himself a former FCC commissioner. “The move signals the recognition that wireless infrastructure is integral to America’s economic and technological future," said Adelstein.
benton.org/headlines/fcc-changing-name-wireless-division | Multichannel News
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ELECTIONS & MEDIA

INSIDE THE UNIVISION-CLINTON NETWORK
[SOURCE: Politico, AUTHOR: Hadas Gold, Marc Caputo]
When former President Bill Clinton takes center stage at Univision’s upfront presentation, it will mark more than just one of his many paid appearances. The relationship between the Clintons and Univision is deep -- from owner Haim Saban’s unabashed support for Hillary Clinton’s election effort to a partnership between Univision and the Clinton Foundation, to the network’s newscasts that have bashed Republicans and, most recently, praised Hillary’s new position on immigration -- putting her squarely in line with the network’s stance on the issue. The importance of Univision for the Latino electorate and 2016 is hard to overstate. It is by far the biggest Spanish-language media network in the United States when it comes to revenue, ratings and stations owned. In some markets, such as Los Angeles, the Univision-owned local newscasts are in the top one or two by ratings. On big nights for the Hispanic community, such as President Barack Obama’s remarks on immigration in November, Univision raked in 4.8 million viewers, more than any other network. During the July sweeps summer 2014, Univision boasted the No. 1 spot in prime time among 18-to-49-year-old viewers for the second year in a row. “You have to go to Univision to get to Latino voters,” said Gabriela Domenzain, a liberal strategist who was a founding producer on Univision’s Sunday news show “Al Punto” and who ran Obama’s Hispanic media outreach in the 2012 election. Univision and the Clinton Foundation joined forces in 2014 for a multi-year early childhood initiative dubbed “Pequeños y Valiosos” (or “Young and Valuable”). The relationship proved of immediate value to Hillary Clinton, whose face was featured in five of seven slides on Univision’s website promoting the initiative in February 2014.
benton.org/headlines/inside-univision-clinton-network | Politico
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INTERNET/BROADBAND

SIXTY-ONE US SENATORS CALL ON FCC TO MODERNIZE SUPPORT FOR RURAL BROADBAND SERVICES
[SOURCE: US Senate Commerce Committee, AUTHOR: Press release]
Senate Commerce Committee Chairman John Thune (R-SD) and fellow Committee Member Sen Amy Klobuchar (D-MN) released a letter signed by sixty-one Senators to Federal Communications Commission Chairman Tom Wheeler calling for a modernization of rules intended to ensure that Americans in rural areas have access to affordable broadband services. Under current rules, Universal Service Fund (USF) support for broadband in rural areas is dependent on the outdated requirement that customers also sign up for traditional landline phone service. When rural customers “cut the cord” of traditional phone service in favor of wireless or Internet-based phone services, rural communities served by smaller telecommunication providers lose access to USF support for broadband deployment even if the customer continues to pay for broadband Internet service. The outdated rules create a needless link between customers signing up for services they may not want or need and broadband deployment.
benton.org/headlines/sixty-one-us-senators-call-fcc-modernize-support-rural-broadband-services | US Senate Commerce Committee
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IF YOU REFORM IT, THEY WILL COME
[SOURCE: Federal Communications Commission, AUTHOR: FCC Chairman Tom Wheeler]
E-rate is the nation's largest education technology program, and it has helped to ensure that almost every school and library in America has basic Internet connectivity. In the 18 years since E-rate was established, technology has evolved, the needs of students and teachers have changed, and basic connectivity has become insufficient. That's why, in 2014, the Federal Communications Commission took steps to reboot and modernize how we connect our schools, libraries -- and most importantly, our students -- to 21st century educational opportunity. We improved the program's cost-effectiveness, set specific, ambitious goals for the broadband capacity delivered to schools and libraries -- a short term target of 100 Mbps per 1000 students, and a longer term target of 1 Gbps per 1,000 students -- and re-purposed funding for Wi-Fi and robust broadband connections capable of supporting cutting-edge, one-to-one digital learning. The bottom line is that E-rate is devoting its resources to where schools and libraries need the most help: getting access to robust broadband. This will open up new educational opportunities for students across the country. Through their ambitious requests, schools and libraries have told us E-rate reform was needed and appreciated. Work is already underway preparing for 2016's introduction of other changes we made to the E-rate program to support the expansion of high-speed fiber connections. Bur for now, we're thrilled that modernization is working as projected, and grateful that we can play our part in educating the next generation of Americans and informing life-long learners by supporting robust broadband in schools and libraries.
benton.org/headlines/if-you-reform-it-they-will-come | Federal Communications Commission
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WHAT'S MISSING IN SEATTLE: AFFORDABLE UNIVERSAL BROADBAND
[SOURCE: Seattle Times, AUTHOR: Editorial staff]
[Commentary] One of the next topics for Seattle (WA) Mayor Ed Murray to address is whether taxpayers in Software City should support a new broadband network. Mayor Murray is giving earnest consideration to the perennial question of whether the city should build and operate a municipal network. A feasibility study is due later in May. If costs aren’t prohibitive, this might be an opportunity for Seattle to show leadership by creating a new public utility in the spirit of the Federal Communications Commission’s recent decision that classified broadband is an essential service. But any attempt to create the broadband equivalent of Seattle City Light should be planned from the start as a citywide service, providing the same quality to everyone in the jurisdiction. What’s missing from the current menu of options -- and the discussion of broadband in general -- is universal service, ensuring that everyone has access to a service that’s now considered essential for work, education and entertainment. A city broadband network may be worthwhile if it offers something unique and of great public value. Leveling the playing field and providing top quality service to everyone would meet this criteria.
benton.org/headlines/whats-missing-seattle-affordable-universal-broadband | Seattle Times
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DIGITAL DIVIDE

DISADVANTAGED ELDERS: LEAST LIKELY TO BE ONLINE
[SOURCE: Benton Foundation, AUTHOR: Cecilia Garcia, Bob Harootyan]
[Commentary] Our previous article noted that only 57-59 percent of seniors currently use the Internet or go online, compared to 86-88 percent of all adults age 18+ (Pew Research Center, 2014). This age-based disparity has lessened recently, due in part to: 1) efforts throughout the nation to promote senior digital literacy, and 2) the initial “cohort effect” of tech-savvy baby boomers who began entering the age 65+ category in 2011 We also stressed the strong relationship between Internet use and socioeconomic characteristics – household income and educational attainment. Given that disadvantaged elders are a large proportion of offline seniors, special outreach efforts are required to help them cross the digital divide by addressing three major barriers: computer anxiety, assumed irrelevance of the Internet, and cost concerns. Senior Service America, Inc. (SSAI) provides one example of varied efforts around the nation to inspire seniors who are least likely to use computers. SSAI has conducted pilot projects for group “Taste the Internet” sessions using tablets. Age peers, most of whom are participants in the Senior Community Service Employment Program (SCSEP), work with one or two offline seniors to show how easy it is to use tablets and to demonstrate various web-based functions and Internet content of interest to the seniors. Such sessions are labor-intensive but not necessarily costly.
[Cecilia Garcia, former Executive Director of the Benton Foundation, is a communications advisor with an extensive background in public affairs, television production and advocacy. Bob Harootyan is the research manager at Senior Service America, Inc.]
benton.org/headlines/disadvantaged-elders-least-likely-be-online | Benton Foundation
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OWNERSHIP

AT&T-DIRECTV APPROVAL NEAR?
[SOURCE: Wall Street Journal, AUTHOR: Thomas Gryta, Shalini Ramachandran]
The Justice Department and Federal Communications Commission have nearly wrapped up their reviews of AT&T’s $49 billion acquisition of DirecTV and aren’t likely to block what would be the biggest media deal of the past year, people familiar with the matter said. The posture contrasts with the strong opposition from the agencies that killed Comcast’s $45 billion deal for Time Warner Cable. It also comes despite warnings from companies like Netflix that a combined AT&T and DirecTV would have the ability and incentive to squeeze online video rivals. Regulators could still decide to impose conditions on the deal, which would create the largest US pay TV company, but don’t appear to have serious concerns, the people said. Final approval could still be weeks away. The Justice Department hasn’t raised issues with the deal and doesn’t plan to block it, the people said. FCC staff are inclined to recommend the commission approve the deal with conditions, but none are expected to be unacceptable to AT&T, people familiar with the process have said.
benton.org/headlines/us-authorities-near-end-att-directv-review-unlikely-block-deal | Wall Street Journal
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AT&T’S PROMISES
[SOURCE: ars technica, AUTHOR: Jon Brodkin]
AT&T is seemingly close to winning approval of its acquisition of DirecTV, in part because it has promised to use the merger's financial benefits to expand home Internet service. But this isn't the first time AT&T has claimed it will expand broadband service if the government approves a merger. Nearly a decade ago, AT&T promised 100 percent broadband coverage throughout its entire territory if it was allowed to buy BellSouth, yet today offers little or no service to millions of people in the 22 states where it operates wireline facilities. Two opponents of AT&T's latest merger have petitioned the Federal Communications Commission to delay the DirecTV buy and investigate AT&T for perjury, saying the company falsely claimed to have lived up to its promise. The perjury allegation might be a stretch, as AT&T argues that it did meet the obligation, at least under the definition of broadband that was used at the time it purchased BellSouth. But the petition and various statements made by AT&T illustrate how many gaps there are in AT&T's network today. The petition is being filed this week by telecom analyst Bruce Kushnick of New Networks Institute and audit director Tom Allibone of telecom customer advocacy group Teletruth. They pointed to the AT&T/BellSouth merger commitment, in which AT&T promised that by December 31, 2007 it would "offer broadband Internet access service (i.e., Internet access service at speeds in excess of 200kbps in at least one direction) to 100 percent of the residential living units in the AT&T/BellSouth in-region territory," with at least 85 percent of them getting access to wireline broadband. The rest would get alternative technology such as satellite or Wi-Max fixed wireless. AT&T falsely said it met this obligation, Kushnick and Allibone claimed.
benton.org/headlines/att-home-internet-falls-short-years-after-promising-100-coverage | Ars Technica | ars June 2014
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WIRELESS/SPECTRUM

VERIZON AND SPRINT TO PAY $158 MILLION TO SETTLE MOBILE CRAMMING INVESTIGATIONS
[SOURCE: Federal Communications Commission, AUTHOR: Press release]
The Federal Communications Commission Enforcement Bureau announced that Verizon Wireless will pay $90 million and Sprint Corporation will pay $68 million to settle investigations that revealed the companies billed customers millions of dollars in unauthorized third-party premium text messaging services, a practice called "cramming." With the two cramming cases, the FCC, working together with the Consumer Financial Protection Bureau, the Federal Trade Commission, and states' attorneys general has brought a total of $353 million in penalties and restitution against the US's four largest wireless carriers, structuring these settlements so that $267.5 million of the total will be returned to affected customers. The monthly charge for these third-party premium text messaging services ranged from $0.99 to $14.00, but typically were $9.99 per month. Verizon retained 30 percent or more of each third-party charge that it billed, while Sprint received approximately 35 percent of collected revenues for each of its third-party charges. Numerous consumers have complained to the FCC, other government agencies, and the carriers that they never requested or authorized the third-party services for which they were charged. Customers who called to complain were often denied refunds, and yet, when the FCC requested proof that customers had authorized charges, the carriers were unable to prove that these services were ever requested. In addition to requiring the carries pay a total of $158 million, the Enforcement Bureau has also secured strong consumer protections in the settlement that reform both internal processes as well as how the company interacts and discloses information to their consumers. These protections include requirements that the carries:
no longer offer commercial third-party PSMS charges
obtain informed consent from customers prior to allowing third-party charges
clearly and conspicuously identify third-party charges on bills
offer a free service for customers to block all third-party charges
regularly report to the FCC on compliance and refunds to customers
benton.org/headlines/verizon-and-sprint-pay-158-million-settle-mobile-cramming-investigations | Federal Communications Commission
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TELEVISION

GROUP TO FCC: AVOID 'WALLED-GARDEN' APPROACH TO VIDEO
[SOURCE: Multichannel News, AUTHOR: Jeff Baumgartner]
The Federal Communications Commission’s pursuit of a successor to the CableCARD continued to heat up as a group comprised of Google, Amazon, Public Knowledge, TiVo and others warned the FCC that putting too fine a focus on downloadable security without addressing the greater goal of furthering the competitive availability of set-tops and other navigation devices “would result in a walled-garden approach.” Members of the group addressed their concerns in a letter to members of the FCC Media Bureau on May 11, ahead of the next scheduled meeting of the FCC-appointed Downloadable Security Advisory Committee (DSTAC), set for May 13. “The FCC Media Bureau staff’s efforts in coordinating and overseeing the DSTAC should continue to further the Congressional directives in Section 629,” the group wrote in the May 11 letter. “In particular, any solution recommended by DSTAC should ensure that device manufacturers can differentiate retail products from multichannel video programming distributors’ leased products. On that point, they said manufacturers should be able to provide innovative and distinctive features, including unique user interfaces, enhanced search functionality, and improved means for recording and viewing content consistent with copyright law. They also said users of retail devices should be able to access the full complement of MVPD video service offerings, while also being able to pick between “premium devices with advanced functionality” as well as “simpler, lower cost devices according to their preference.” "The DSTAC should achieve a recommendation that functionally supersedes the CableCARD, without a need for the CableCARD hardware,” they added.
benton.org/headlines/group-fcc-avoid-walled-garden-approach-video | Multichannel News
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May 2015

Univision’s Bill Clinton–led pitch to advertisers shows why TV isn’t more diverse

May 13, 2015 (NSA Reform; FCC Reform; Seniors; AT&T-DirecTV; Verizon-AOL)

No amendments allowed on NSA reform bill

US Authorities Near End of AT&T-DirecTV Review, Unlikely to Block Deal

AT&T home Internet falls short, years after promising 100% coverage

AOL CEO’s Pivot to Ad Tech Pays Dividends

The AOL Telltale

Why AOL Matters Again

Coming This Summer: US Will Run Out of Internet Addresses

Facebook Begins Testing Direct Publication of News Articles