May 2015

Google wireless and the evolution of usage-based pricing

[Commentary] Perhaps the most interesting aspect of Google Fi, Google's wireless service, is its pricing structure. The company plans to charge $20/month for connectivity, plus $10/GB of data consumed. But Google Fi differs from traditional plans in two respects: (1) customers who exceed their plans will simply pay the same $10/GB rate for any additional data consumed (rather than a higher per-unit overage charge), and (2) Google will refund the customer at the end of the month for any data purchased but not used. So if a customer purchases a 3GB plan for $30 but only uses 2.4GB, he or she will receive a $6 credit.

It is somewhat strange that Google’s announcement has been met with silence from opponents of usage-based pricing. Over the past few years I have debated groups like Public Knowledge and Free Press at length on this issue, and while I respect their concerns, the arguments do not outweigh the potential benefits of usage-based pricing for consumers and the industry as a whole. There is nothing inherently anti-consumer or anticompetitive about usage-based pricing. It is simply one of many ways that a wireless provider may allocate its costs across its customer base. As the Internet matures, different consumers are using and will continue to use broadband in different ways. This growing heterogeneity among consumers demands a greater diversity of pricing plans and access models. The “best” plan may vary by consumer and by network. Google Fi represents a positive step toward offering more, and more innovative, options to consumers. But Google should not be the only company allowed to innovate in this space. Society benefits when all broadband providers have the freedom to experiment with new and potentially more efficient ways of delivering Internet content and applications to consumers.

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

TiVo: Most OTA Cord-Cutters Come From Satellite

TiVo hasn’t revealed any specific sales figures for its Roamio OTA (over-the-air) DVR model for cord-cutters, but a new study by the company indicates that most of them are coming way of the satellite TV industry. In a survey fielded late in 2014 that polled more than 500 Roamio OTA DVR buyers, TiVo found that the majority of those who were pay TV cord-cutters (32 percent) were formerly satellite DVR users. Those cord-cutting consumers also cited the cost of their monthly bill and dissatisfaction with the overall features as the primary reasons for switching to an OTA approach.

Following an initial limited rollout, TiVo launched the Roamio OTA DVR on a national basis in February. The device, equipped with 500 Gigabytes of storage, four tuners, and integrations with Netflix, Amazon, Hulu and other over-the-top video services, sells for $49.99 at retail, plus a $14.99 per month service fee. TiVo has also been experimenting with a Lifetime Service option that hawks the Roamio OTA for $300, but does not require a monthly service fee. “The data we’ve collected shows a clear trend -- satellite TV subscribers are more likely than cable subscribers to cut the cord in favor of an OTA DVR,” Tom Rogers, TiVo’s president and CEO, said in a statement. “TiVo has an OTA solution for operators that helps them capitalize on these potential new customers by packaging broadband with a unique OTA service that seamlessly combines OTA signals alongside popular streaming services like Netflix and Amazon Prime Video.”

New apps threaten TV networks’ golden egg: Live sports

Since the advent of the VCR and then YouTube, the media industry’s No. 1 enemy has been piracy. But while Hollywood and the TV networks have fought one technology after another, one type of entertainment has been safe from illegal broadcasts: live sports. That’s because fans hated waiting for illicit recordings to be posted online. Sporting events offered the rare assurance that millions of viewers would still gather at a scheduled time in front of their televisions to watch games unfold live. Now, live-streaming apps such as Periscope and Meerkat threaten TV’s golden egg. Just hold a smartphone up to a television to record and stream what’s airing, and suddenly piracy is easier than ever. That stunning recognition arrived when droves of boxing fans skipped the $100 pay-per-view fee and watched the much-anticipated match between Floyd Mayweather Jr. and Manny Pacquiao for free. Dozens of live streams of the fight were available through Periscope, and even though the app shut down 30 illegal streams, users gloated about their ability to watch. Sports leagues have so far tolerated some fan use of these apps, and media organizations say the services are not yet hurting their bottom lines. But the implications of the new technology are clear.

Cops Increasingly Use Social Media to Connect, Crowdsource

Law enforcement has long used public tip lines and missing persons bulletins to recruit citizens in helping solve crime and increasing public safety. Though the need for police departments to connect with their communities is nothing new, the array of technologies available to do so is growing all the time -- as are the ways in which departments use those technologies. In fact, 81 percent of law enforcement professionals use sites such as Facebook and Twitter on the job. And 25 percent use it daily. Much of law enforcement is crowdsourced -- Amber alerts are pushed to smartphones, seeking response from citizens; officers push wanted information and crime tips to users on Facebook and Twitter in the hopes they can help; and some departments create apps to streamline the information sharing.

Take the Johns Creek (GA) Police Department, which has deployed a tool that allows additional citizen engagement and crowdsourcing. “Law enforcement is sometimes behind, but we saw the need. We realized that we needed to use social media,” explained Lt. Jon Moses, noting that Johns Creek PD was using Facebook and Twitter, but wanted to add features. Using a mobile app -- the SunGard Public Sector P2C Converge app, which is branded specifically for Johns Creek PD as JCPD4Me -- the department can more smoothly manage public safety announcements and other social media interactions. The JCPD4Me app provides news bulletins, information on arrests and traffic accidents, missing persons info, most wanted, and news and events. It also provides links to other city services, such as the Johns Creek Facebook, Twitter, Instagram and YouTube feeds, among many other things.

Please don't call Newt Minow a philanthropist

Newton Minow, former Federal Communications Commission Chairman, has given plenty of money and time to good causes; he just doesn't like the label of philanthropist. A short list of Newton Minow's accomplishments: helping pass the All Channel Receiver Act of 1961, which mandated UHF receptors in US-made television sets and thus enabled the growth of public television. Becoming WTTW-TV/Channel 11's second chairman and helping it become the most-watched public television station in the country. Writing an elegant “ask” that raised $100,000 to support WTTW's 2014 broadcast of the BBC series “The Story of the Jews” with Simon Schama. Underwriting fellowships and scholarships at Northwestern University and its Feinberg School of Medicine, New Trier High School and the Chicago History Museum. Calling bad television “a vast wasteland,” in a speech to the National Association of Broadcasters on May 9, 1961, to emphasize the importance of public service.

May 6, 2015 (Spotlight Turns to AT&T-DirecTV)

BENTON'S COMMUNICATIONS-RELATED HEADLINES for WEDNESDAY, MAY 6, 2015

Ensuring an Informed Citizenry: Examining the Administration’s Efforts to Improve Open Government https://www.benton.org/calendar/2015-05-06


OWNERSHIP
   Now, Spotlight Turns to AT&T-DirecTV Deal
   Netflix calls on FCC to reject AT&T merger unless changes are made
   Cogent Urges US to Restrain AT&T in DirecTV Deal

PRIVACY/SECURITY
   How the NSA Converts Spoken Words Into Searchable Text
   Senate barreling toward surveillance standoff
   Eleventh Circuit rules for the feds on cell-site records -- but then overreaches
   Twitter challenge to US national security probes moves forward [links to web]

TELEVISION
   Cable TV industry goes from high to low in a year
   Top Cable Industry Guy Acknowledges People Hate Cable Guys
   The Dreaded Bundle Comes to Internet TV - Tim Wu op-ed [links to web]
   Acquired Content: Cable's Cornerstone - op-ed [links to web]
   Media Companies Post Gains Despite Drop in TV Ratings [links to web]

WIRELESS
   FCC Seeks Information on Current Trends in LTE-U and LAA Technology - Public Notice
   Cashing In on Public Interest Programming - Harold Feld op-ed
   We Need Better Infrastructure for Better Wi-Fi - Susan Crawford op-ed
   Why I Will Participate in the Spectrum Auction - Bert Ellis op-ed
   Broadcasters and Consumers Should Be Wary - Adonis Hoffman op-ed
   Now It's Official: More Google Searches Are Coming From Mobile Than Desktop [links to web]
   Republic Wireless Racing Against Google to Sell Wi-Fi Phones [links to web]

INTERNET/BROADBAND
   Public Knowledge Files Opposition to Petition for Stay on Net Neutrality - press release
   Expect Court to Partially Stay FCC’s Title II Internet Reclassification - Scott Cleland analysis [links to web]
   Throw a Lifeline Across the Digital Divide - FCC Commissioner Clyburn op-ed
   Remarks of FCC Commissioner O'Rielly Before the WTA - Advocates for Rural Broadband - speech
   Florida ISP Uses Dark Fiber to Boost Bandwidth, Lower Costs [links to web]
   Sen Cantwell Wants to Connect More Federal Buildings to the Internet of Things [links to web]
   Arkansas launches $13 million school broadband upgrade [links to web]
   Building for the Future: A New Federal Guide to Infrastructure Planning and Design [links to web]

LABOR
   Asian-American tech workers absent from Silicon Valley's executive suites [links to web]
   Google raising stakes on diversity [links to web]

ELECTIONS AND MEDIA
   Fiorina: Next president needs 'fundamental understanding' of tech [links to web]

TRANSPORTATION
   The Internet might transform commuting more than the self-driving car [links to web]

COMMUNITY MEDIA
   Do We Really Need Libraries? - NPR analysis [links to web]
   New York City’s Libraries Need Money - NYTimes editorial [links to web]

EMERGENCY COMMUNICATIONS
   FirstNet Seeks Comment on Proposed Interpretations of Middle Class Tax Relief and Job Creation Act of 2012 - public notice [links to web]

GOVERNMENT & COMMUNICATIONS
   CBO Scores ALERT Act - research [links to web]

POLICYMAKERS
   Senate approves Willie May to be new Commerce under secretary for standards and technology [links to web]
   FCC Announces Appointment of Consumer Advisory Committee - public notice

STORIES FROM ABROAD
   A Digital Single Market for Europe: Commission sets out 16 initiatives to make it happen - press release
   Lawmakers in France Move to Vastly Expand Surveillance
   Germany, Too, Is Accused of Spying on Friends [links to web]

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OWNERSHIP

AT&T-DIRECTV IN SPOTLIGHT
[SOURCE: New York Times, AUTHOR: Emily Steel]
Just three months after Comcast announced its $45 billion takeover of Time Warner Cable, its rival AT&T announced a $48 billion takeover of DirecTV. Both deals were poised to create new industry behemoths and transform the country’s media landscape. But while the Comcast transaction set off a widespread public outcry and ultimately collapsed last month under regulatory scrutiny, the AT&T-DirecTV merger proposal has largely avoided intense examination. Until now. The spotlight has turned to AT&T’s deal for DirecTV, which -- if approved -- would unite the telecom giant with the satellite company to create the country’s largest television distributor. With about 26 million subscribers, it would surpass Comcast. Federal regulators are poring through more than 7.5 million pages of documents, hundreds of white papers and testimony by company executives to evaluate whether the AT&T-DirecTV deal will harm competition or serve the public interest. AT&T and DirecTV have both said they are confident the deal will close by the end of June.
benton.org/headlines/now-spotlight-turns-att-directv-deal | New York Times
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NETFLIX CALLS ON FCC TO REJECT AT&T MERGER UNLESS CHANGES ARE MADE
[SOURCE: The Hill, AUTHOR: Mario Trujillo]
Netflix is urging federal regulators to deny the $48 billion merger of AT&T and DIRECTV unless changes are made to the proposal. The online video streaming giant made the call during a meeting with the Federal Communications Commission. "We've been highlighting these concerns and the need for appropriate remedies since last September," said Netflix spokeswoman Anne Marie Squeo. The merger with DIRECTV would make AT&T the largest provider of cable and satellite service, and could make it the largest Internet service provider as well, Netflix said. "Such market power creates new incentives and abilities to harm entities that AT&T perceives as competitive threats, and will exacerbate the anticompetitive behavior in which AT&T has already engaged," according to the filing. Netflix cited previous interconnection disputes with AT&T. It said the company's purchase of a legacy video service could make it see online video distributors (OVD) -- including Netflix -- as a threat. "AT&T’s investment in a business model that profits by selling bundled programming packages will result in a powerful incentive to protect that model," the filing said. The Netflix filing used strong language, calling on the FCC to "reject the merger as currently proposed."
benton.org/headlines/netflix-calls-fcc-reject-att-merger-unless-changes-are-made | Hill, The
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COGENT URGES US TO RESTRAIN AT&T IN DIRECTV DEAL
[SOURCE: Bloomberg, AUTHOR: Todd Shields]
Data carrier Cogent Communications Holdings Inc. called for AT&T/DirecTV merger conditions similar to what Netflix recently called for to ensure Web services aren’t harmed, according to a regulatory filing. It may be “good news” for the AT&T deal that Netflix and Cogent are asking for conditions, said Craig Moffett, an analyst at MoffettNathanson who expects the deal to close. “The broad consensus is that Netflix played a central role in scuttling the Comcast deal,” Moffett said. Now, he said, “two of the most ardent opponents are tacitly blessing the idea of the merger as long as there are appropriate conditions.” DirecTV Chairman Michael White said he expects the deal to close this quarter. Once it acquires DirecTV and its video business, AT&T will have an increased incentive to hinder streaming entertainment offerings, Netflix and Cogent said in filings dated May 4 and April 30 at the Federal Communications Commission.
benton.org/headlines/cogent-urge-us-restrain-att-directv-deal | Bloomberg
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PRIVACY/SECURITY

HOW THE NSA CONVERTS SPOKEN WORDS INTO SEARCHABLE TEXT
[SOURCE: The Intercept, AUTHOR: Dan Froomkin]
Most people realize that e-mails and other digital communications they once considered private can now become part of their permanent record. But even as they increasingly use apps that understand what they say, most people don’t realize that the words they speak are not so private anymore, either. Top-secret documents from the archive of former NSA contractor Edward Snowden show the National Security Agency can now automatically recognize the content within phone calls by creating rough transcripts and phonetic representations that can be easily searched and stored. The documents show NSA analysts celebrating the development of what they called “Google for Voice” nearly a decade ago. Though perfect transcription of natural conversation apparently remains the Intelligence Community’s “holy grail,” the Snowden documents describe extensive use of keyword searching as well as computer programs designed to analyze and “extract” the content of voice conversations, and even use sophisticated algorithms to flag conversations of interest. The documents include vivid examples of the use of speech recognition in war zones like Iraq and Afghanistan, as well as in Latin America. But they leave unclear exactly how widely the spy agency uses this ability, particularly in programs that pick up considerable amounts of conversations that include people who live in or are citizens of the United States. Spying on international telephone calls has always been a staple of NSA surveillance, but the requirement that an actual person do the listening meant it was effectively limited to a tiny percentage of the total traffic. By leveraging advances in automated speech recognition, the NSA has entered the era of bulk listening. And this has happened with no apparent public oversight, hearings or legislative action. Congress hasn’t shown signs of even knowing that it’s going on.
benton.org/headlines/how-nsa-converts-spoken-words-searchable-text | Intercept, The
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SENATE BARRELING TOWARD SURVEILLANCE STANDOFF
[SOURCE: The Hill, AUTHOR: Julian Hattem]
The Senate isn't getting any closer to reforming the nation's spying laws or reauthorizing expiring portions of the Patriot Act with fewer than three legislative weeks left for lawmakers to do so. On May 5th, Senate Majority Leader Mitch McConnell (R-KY) would not pledge to take up legislation called the USA Freedom Act, which is expected to gain broad support in the House. “We’re going to try to do something to avoid expiration at the end of the month,” he told reporters. “Exactly how that plays out will be determined in part by how much time is left to achieve [a deal].” Instead, Majority Leader McConnell indicated that the starting point for his chamber would be legislation he and Senate Intelligence Committee Chairman Richard Burr (R-NC) introduced to make a "clean" extension of the existing law for five years, which he would open up for amendments. “I think, most likely, the outcome is some kind of an extension,” he said. “Chairman Burr and I consulted and we agreed that the underlying bill would be a simple extension but it would be open for amendment, whenever we are able to fully turn to it.” “The question is whether we can do all of that between now and Memorial Day, and I can’t tell you right now," he added. The lack of certainty about a path forward could lead to a heightened standoff as lawmakers approach a June 1 deadline to extend or reform the Patriot Act. With members of both parties pledging to oppose a "clean" reauthorization of the law, it seems unlikely Republican leaders would be able to get the 60 votes they need to avoid a filibuster on the bill.
benton.org/headlines/senate-barreling-toward-surveillance-standoff | Hill, The
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ELEVENTH CIRCUIT RULES FOR THE FEDS ON CELL-SITE RECORDS -- BUT THEN OVERREACHES
[SOURCE: Washington Post, AUTHOR: Orin Kerr]
[Commentary] The en banc Eleventh Circuit has ruled that historical cell-site records are not protected by the Fourth Amendment under the third-party doctrine. The case, United States v. Davis, also adds an alternative holding that is even more important: Even if cell-site records were protected, the en banc court holds, accessing them would trigger only minimal Fourth Amendment concerns and would not require a warrant or probable cause. My bottom line: I agree with court’s ruling that the third-party doctrine applies and there was no search, but I think the alternative holding is puzzling, inconsistent with precedent, and unnecessary. But stay tuned. It’s a long shot, but that second alternative holding might end up drawing Supreme Court review of both holdings.
[Orin Kerr is the Fred C. Stevenson Research Professor at The George Washington University Law School]
benton.org/headlines/eleventh-circuit-rules-feds-cell-site-records-then-overreaches | Washington Post | The Verge
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TELEVISION

CABLE TV INDUSTRY GOES FROM HIGH TO LOW IN A YEAR
[SOURCE: Los Angeles Times, AUTHOR: Meg James]
It hasn't been a good year for television. That seems clear from 2015's annual convention of the nation's pay-TV industry here. The lofty expectations from 2014's gathering of the National Cable & Telecommunications Association have given way to 2015's anxiety over digital disruption. The most obvious sign? A new name for the massive event -- the Internet and Television Expo -- a nod to the rising threat of online platforms and streaming services. Gone is 2014's buzz about Comcast's audacious $45-billion bid for Time Warner Cable. That deal is dead. The renewed ratings strength at major programming companies such as NBC and Viacom 2014? It's been a struggle. And 21st Century Fox Chairman Rupert Murdoch's play for Time Warner ended up failing. "It's an interesting time for the cable TV business," said Richard Greenfield, media analyst with BTIG Research. "The chessboard keeps wanting to be reset, but at the same time the business is increasingly threatened by rapid growth of Internet video." Top executives of all the major cable companies, as well as top government regulators, plan to attend the cable convention in Chicago, which begins May 5th and typically draws more than 10,000 attendees. 2015's key topic is expected to be how well the cable industry can weather the digital storm that looms over the landscape. Sluggish ratings at major cable and broadcast networks are giving industry leaders more cause for concern. Conventional media companies have been roiled by consumers' increased use of high-tech devices to watch TV shows and films, and that's led to slumping television ratings.
benton.org/headlines/cable-tv-industry-goes-high-low-year | Los Angeles Times
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TOP CABLE INDUSTRY GUY ACKNOWLEDGES PEOPLE HATE CABLE GUYS
[SOURCE: Revere Digital, AUTHOR: Amy Schatz]
Two massive losses in Washington (DC) recently by the cable industry -- the adoption of network neutrality rules and the death of Comcast’s Time Warner Cable deal -- have left cable operators “highly conscious” of the industry’s image problems, National Cable & Telecommunications Association chief executive Michael Powell said. “I’m a firm believer that words and messages don’t work if you’re not liked,” Powell said at the cable industry’s annual trade show, which has been redubbed INTX, the Internet and Television Expo. Cable industry executives are “not delusional” about the complaints from consumers -- from ever-higher prices to terrible customer service -- and are working on long-term fixes to those problems, he said. Another issue that the industry isn’t particularly delusional about is the latest threat of piracy that has been introduced by video sharing apps such as Meerkat, Periscope or Vine. Powell also said that he hates cable, the name that is, because it does not capture all that his industry has done to build out broadband. "I hate the name," Powell said. "I do think it has a proud history but I think it has to be retired in some way because I think your past can be apart of your glory but it also can be a weight around your ankle. And it also doesn't fairly capture what they do." And while he may hate the name, he loves the record of building out broadband. He said the industry had "successfully deployed the most sophisticated infrastructure in the history of the world in the fastest amount of time of any technology in the history of the world, and increased the capacity of that at exponential rates."
benton.org/headlines/top-cable-industry-guy-acknowledges-people-hate-cable-guys | Revere Digital | Multichannel News
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WIRELESS

FCC SEEKS INFORMATION ON CURRENT RENDS IN LTE-U AND LAA TECHNOLOGY
[SOURCE: Federal Communications Commission, AUTHOR: Public notice]
Parties within the wireless industry are developing a version of commercial wireless LTE technology called LTE-Unlicensed (LTE-U) that is intended for operations in certain unlicensed frequency bands. LTE-U could operate in conjunction with licensed commercial wireless services using a technique called Licensed Assisted Access (LAA) whereby a channel in an operator's licensed spectrum is used as the primary channel for devices operating on an unlicensed basis. The Office of Engineering and Technology and the Wireless Telecommunications Bureau seek information on these technologies and the techniques they will implement to share spectrum with existing unlicensed operations and technologies such as Wi-Fi that are widely used by the public. The Federal Communications Commission is opening this docket to provide an opportunity for interested parties to enable a fully participatory and transparent discussion about LTE_U and LAA technologies and how they will coexist with other technologies, including Wi-Fi. Interested parties may file comments on or before June 11, 2015, and reply comments on or before June 26, 2015. [ET Docket No. 15-105]
benton.org/headlines/fcc-seeks-information-current-trends-lte-u-and-laa-technology | Federal Communications Commission
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CASHING IN ON PUBLIC INTEREST PROGRAMMING
[SOURCE: New York Times, AUTHOR: Harold Feld]
[Commentary] As part of an 80-year-old bargain under the Communications Act, local television and radio broadcasters license “public airwaves” from the government for free in exchange for increasingly minimal public interest obligations to serve local communities. But those same airwaves -- also called electromagnetic spectrum, or just, spectrum -- could also be used by telecommunications companies like AT&T and Verizon to expand Internet access to our mobile phones and devices. Because it would be politically impossible to simply cancel the free licenses for broadcasters, and auction them off to Internet giants, Congress is offering broadcasters a cut of the auction proceeds if they give up their licenses. No one doubts this country’s insatiable love for, and dependence on, mobile devices. Also, the government stands to make billions of dollars after the companies like AT&T and Verizon buy airwave space, having raised almost $45 billion at the last spectrum auction. But what effect could this have on public television? With the Federal Communications Commission promising broadcasters billion-dollar payouts in exchange for their licenses, even the most dedicated public broadcasting affiliate must give serious thought to cashing in. That could spell the end of PBS as a national network, and would end our greatest effort to dedicate a portion of the public airwaves to the public.
[Feld is the senior vice president of Public Knowledge]
benton.org/headlines/cashing-public-interest-programming | New York Times
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FIBER FOR BETTER WI-FI
[SOURCE: New York Times, AUTHOR: Susan Crawford]
[Commentary] If fiber-optic lines ran to every business and residence in the country, we'd have a cloud of unlimited Wi-Fi connectivity everywhere we work, live and play. Only fiber can handle the tsunami of data uploaded by mobile devices and sensors Americans are going to use. The Federal Communications Commission took a major step in the direction of this vision by voting to open up a wide swath of frequencies for Wi-Fi use that had been previously controlled by the Department of Defense. But this will make little difference for consumers if the wires needed to facilitate Wi-Fi access in America are second-rate and controlled by the cable industry, and there is no plan for the country to upgrade to fiber. The cable industry already controls the Wi-Fi market with its wires. This is great for cable: It can sell Wi-Fi services for a fee without having to invest a dime in new infrastructure. But consumers are stuck with the cable companies' proprietary Wi-Fi as well as their second-class wires. What’s most needed to improve wireless communication is for cities to call for publicly owned, privately built open access fiber networks -- with these in place, we'd have a cloud of free, public Wi-Fi in every part of our lives, not just more cellular service.
[Crawford is a visiting professor at the Harvard Kennedy School and Harvard Law School]
benton.org/headlines/we-need-better-infrastructure-better-wi-fi | New York Times
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KDOC AND THE SPECTRUM AUCTION
[SOURCE: New York Times, AUTHOR: Bert Ellis]
[Commentary] As the owner of KDOC-TV in Los Angeles, I believe the Federal Communications Commission spectrum auction will be very positive for consumers, as well as the broadcast industry. KDOC is able to participate in this auction, and sell back some of the airwaves, via a channel sharing arrangement with another Los Angeles-based television station — in this case, a major network affiliate. We will sell the spectrum of one of our two stations and continue broadcasting our same channel line-ups, without change, on the airwaves of the remaining “shared” station. Consumers won't even have to adapt to a new TV station. Current technology will enable both TV stations to broadcast two separate full HD signals over one broadcast channel. Consumers will continue to see the programming from both stations via their existing “virtual” channels. After the auction, television viewers in Los Angeles will have to re-tune their TV sets once to accommodate the changes, but they will continue to view KDOC-TV and our sharing partner station on the same (separate) TV channels that they always have. We will invest our joint proceeds from the spectrum auction into better local entertainment, news and sports programming.
[Ellis is the chairman and chief executive officer of Ellis Communications and the owner of KDOC-TV in Los Angeles]
benton.org/headlines/why-i-will-participate-spectrum-auction | New York Times
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BROADCASTERS AND CONSUMERS SHOULD BE WARY
[SOURCE: New York Times, AUTHOR: Adonis Hoffman]
[Commentary] If the government’s auction of some of the most valuable broadcast spectrum succeeds, broadcasters and consumers should be wary. Once broadcasters relinquish their valuable spectrum, who will inherit their longstanding commitment to local service? The broadcast industry may have its warts, but when it comes to meeting the information needs of local communities, nobody does it better -- not cable and not the Internet or wireless service providers. When the flood waters rise or the cell towers fail, local broadcasters are the go-to medium for news, weather and safety information from coast to coast. The arcane regulatory distinction between cable and broadcast television stands at the very core of this issue. Simply put, by well-settled law, broadcast is highly regulated and cable is not. Broadcasters have public service obligations -- wireless providers, not so much. Ultimately, the Federal Communications Commission is duty-bound to uphold the public interest. Local broadcasters have expanded those obligations as responsible custodians of the public airwaves. Can we expect the same from the new owners, or will policymakers need to write new rules for getting important public service information to communities?
[Hoffman, an adjunct professor at Georgetown University, is the founder and chairman of Business in the Public Interest]
benton.org/headlines/broadcasters-and-consumers-should-be-wary | New York Times
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INTERNET/BROADBAND

PUBLIC KNOWLEDGE FILES OPPOSITION TO PETITION FOR STAY ON NET NEUTRALITY
[SOURCE: Public Knowledge, AUTHOR: Shiva Stella]
Public Knowledge and other consumer advocacy groups filed an Opposition to the Petition for Stay Pending Judicial Review of Daniel Berninger, Founder of the Voice Communication Exchange Committee. Berninger’s Petition for Stay filed at the Federal Communications Commission requests the agency grant a stay of its landmark network neutrality order, which reclassifies broadband Internet access service under Title II of the Communications Act. A stay would prevent the FCC’s Open Internet Order from taking effect, denying customers the guarantee of an Open Internet while causing uncertainty for companies and consumers alike. In evaluating a Petition for Stay, the FCC considers: (1) whether Petitioner is likely to succeed on the merits; (2) whether Petitioner will be irreparably injured in the absence of a stay; (3) whether a stay will harm other parties; and (4) whether the public interest supports a stay. Public Knowledge finds that Berninger has failed to show that any of these factors favor the grant of a stay, and so encourage the FCC to deny the Petitioner’s request.
benton.org/headlines/public-knowledge-files-opposition-petition-stay-net-neutrality | Public Knowledge
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THROW A LIFELINE ACROSS THE DIGITAL DIVIDE
[SOURCE: Multichannel News, AUTHOR: FCC Commissioner Mignon Clyburn]
[Commentary] While the old adage “content is king” remains true, that content is now being provided by a flood of new entrants, along with traditional media companies. But to take advantage of new, diverse offerings, consumers need access to broadband. For too many Americans, however, broadband remains out of reach. Nearly half of adults with annual incomes of less than $30,000 do not have broadband access at home. Today, a full three decades after the creation of Lifeline, the program still only funds voice service. It has been stuck in a bygone era since its inception and is in need of serious reform. Over the past few months, I have outlined a vision for changes that I believe are needed to usher the program into the digital era and ensure that we are meeting the statutory directive for universal service. Reforming Lifeline is not going to entirely undo the digital divide, for we need public-private partnerships to address issues other than affordability to encourage broadband adoption. But with carefully calibrated reforms and collaboration between regulators and the industry I believe Lifeline has the potential to become a much more effective tool in tackling this chronic problem. I look forward to working with National Cable & Telecommunications Association and its members to accomplish this result.
benton.org/headlines/throw-lifeline-across-digital-divide | Multichannel News
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REMARKS OF FCC COMMISSIONER O'RIELLY BEFORE THE WTA - ADVOCATES FOR RURAL BROADBAND
[SOURCE: Federal Communications Commission, AUTHOR: FCC Commissioner Michael O'Rielly]
Little did I know when I accepted this meeting that it would be crunch time for discussing the details of a Connect America Fund (CAF) for rate-of-return providers. The heart of universal service cannot be accomplished without ensuring that there are networks in place throughout America to deliver those services. It is absolutely critical to complete the Connect America Fund reforms. I appreciate the work that you and other associations have undertaken so far to find paths forward for rate-of-return areas. I recognize that no rate-of-return reform has ever been sustainable without your input. And I am convinced that with some hard work, creative thinking, and compromise from everyone -- including us Commissioners at the Federal Communications Commission -- we can get this done.
benton.org/headlines/remarks-fcc-commissioner-orielly-wta-advocates-rural-broadband | Federal Communications Commission
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POLICYMAKERS

FCC ANNOUNCES APPOINTMENT OF CONSUMER ADVISORY COMMITTEE
[SOURCE: Federal Communications Commission, AUTHOR: Public notice]
The Federal Communications Commission announces the appointment of the thirty-seven members of the Consumer Advisory Committee, a committee to make recommendations to the FCC regarding consumer issues within jurisdiction of the FCC and to facilitate the participation of consumers (including underserved populations, such as Native Americans, persons living in rural areas, older persons, people with disabilities, and persons for whom English is not their primary language) in proceedings before the FCC. Of the thirty-seven members [which includes the Benton Foundation], 21 represent general consumer organizations/academia, two represent disability organizations, eight represent industry, four represent regulators, one represents seniors, and one represents unions. FCC Chairman Tom Wheeler reappoints Debra R. Berlyn representing the National Consumers League as Chairperson of the Committee. All appointments and reappointments are effective immediately and shall terminate October 21, 2016, or when the Committee is terminated, whichever is earlier. The first meeting of the Committee under its renewed charter will take place on June 12, 2015 from 9:00am to 4:00pm at FCC headquarters building. [more at the URL below]
benton.org/headlines/fcc-announces-appointment-consumer-advisory-committee | Federal Communications Commission
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STORIES FROM ABROAD

DIGITAL SINGLE MARKET
[SOURCE: European Commission, AUTHOR: Press release]
The European Commission unveiled its detailed plans to create a Digital Single Market, thereby delivering on one of its top priorities. The Digital Single Market Strategy adopted May 6 includes a set of targeted actions to be delivered by the end of next year. It is built on three pillars: (1) better access for consumers and businesses to digital goods and services across Europe; (2) creating the right conditions and a level playing field for digital networks and innovative services to flourish; (3) maximising the growth potential of the digital economy. The Digital Single Market project team will deliver on these different actions by the end of 2016. With the backing of the European Parliament and the Council, the Digital Single Market should be completed as soon as possible. The Digital Single Market will be on the agenda of the European Council meeting on 25-26 June. [much more at the URL below]
benton.org/headlines/digital-single-market-europe-commission-sets-out-16-initiatives-make-it-happen | European Commission | WSJ | Bloomberg | Politico
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FRENCH LAWMAKERS TO EXPAND SURVEILLANCE
[SOURCE: New York Times, AUTHOR: Alissa Rubin]
At a moment when American lawmakers are reconsidering the broad surveillance powers assumed by the government after Sept. 11, the lower house of the French Parliament took a long stride in the opposite direction, overwhelmingly approving a bill that could give the authorities their most intrusive domestic spying abilities ever, with almost no judicial oversight. The bill, in the works since 2014, now goes to the Senate, where it seems likely to pass, having been given new impetus in reaction to the terrorist attacks in and around Paris in January. The provisions, as currently outlined, would allow the intelligence services to tap cellphones, read emails and force Internet companies to comply with requests to allow the government to sift through virtually all of their subscribers’ communications. Among the types of surveillance that the intelligence services would be able to carry out is bulk collection and analysis of metadata similar to that done by the United States’ National Security Agency. The intelligence services could also request the right to put hidden microphones in a room or on objects such as cars or in computers, or to place antennas to capture telephone conversations or mechanisms that capture text messages. Both French citizens and foreigners could be tapped.
benton.org/headlines/lawmakers-france-move-vastly-expand-surveillance | New York Times
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A Digital Single Market for Europe: Commission sets out 16 initiatives to make it happen

The European Commission unveiled its detailed plans to create a Digital Single Market, thereby delivering on one of its top priorities. The Digital Single Market Strategy adopted May 6 includes a set of targeted actions to be delivered by the end of next year. It is built on three pillars: (1) better access for consumers and businesses to digital goods and services across Europe; (2) creating the right conditions and a level playing field for digital networks and innovative services to flourish; (3) maximising the growth potential of the digital economy.

The Digital Single Market project team will deliver on these different actions by the end of 2016. With the backing of the European Parliament and the Council, the Digital Single Market should be completed as soon as possible. The Digital Single Market will be on the agenda of the European Council meeting on 25-26 June.

The Digital Single Market Strategy sets out 16 key actions under 3 pillars which the Commission will deliver by the end of 2016:

Pillar I: Better access for consumers and businesses to digital goods and services across Europe
The Commission will propose:
1. rules to make cross-border e-commerce easier. This includes harmonised EU rules on contracts and consumer protection when you buy online: whether it is physical goods like shoes or furniture; or digital content like e-books or apps. Consumers are set to benefit from a wider range of rights and offers, while businesses will more easily sell to other EU countries. This will boost confidence to shop and sell across borders (see Factsheet for facts & figures).
2. to enforce consumer rules more rapidly and consistently,by reviewing the Regulation on Consumer Protection Cooperation.
3. more efficient and affordable parcel delivery. Currently 62% of companies trying to sell online say that too-high parcel delivery costs are a barrier (see the newly released Eurobarometer on e-commerce).
4. to end unjustified geo-blocking – a discriminatory practice used for commercial reasons, when online sellers either deny consumers access to a website based on their location, or re-route them to a local store with different prices. Such blocking means that, for example, car rental customers in one particular Member State may end up paying more for an identical car rental in the same destination.
5. to identify potential competition concerns affecting European e-commerce markets. The Commission therefore launched today an antitrust competition inquiry into the e-commerce sector in the European Union (press release).
6. a modern, more European copyright law: legislative proposals will follow before the end of 2015 to reduce the differences between national copyright regimes and allow for wider online access to works across the EU, including through further harmonisation measures. The aim is to improve people's access to cultural content online – thereby nurturing cultural diversity – while opening new opportunities for creators and the content industry. In particular, the Commission wants to ensure that users who buy films, music or articles at home can also enjoy them while travelling across Europe. The Commission will also look at the role of online intermediaries in relation to copyright-protected work. It will step up enforcement against commercial-scale infringements of intellectual property rights.
7. a review of the Satellite and Cable Directive to assess if its scope needs to be enlarged to broadcasters' online transmissions and to explore how to boost cross-border access to broadcasters' services in Europe.
8. to reduce the administrative burden businesses face from different VAT regimes: so that sellers of physical goods to other countries also benefit from single electronic registration and payment; and with a common VAT threshold to help smaller start-ups selling online.

Pillar II: Creating the right conditions and a level playing field for digital networks and innovative services to flourish
The Commission will:
9. present an ambitious overhaul of EU telecoms rules. This includes more effective spectrum coordination, and common EU-wide criteria for spectrum assignment at national level; creating incentives for investment in high-speed broadband; ensuring a level playing field for all market players, traditional and new; and creating an effective institutional framework.
10. review the audiovisual media framework to make it fit for the 21st century, focusing on the roles of the different market players in the promotion of European works (TV broadcasters, on-demand audiovisual service providers, etc.). It will as well look at how to adapt existing rules (the Audiovisual Media Services Directive) to new business models for content distribution.
11. comprehensively analyse the role of online platforms (search engines, social media, app stores, etc.) in the market. This will cover issues such as the non-transparency of search results and of pricing policies, how they use the information they acquire, relationships between platforms and suppliers and the promotion of their own services to the disadvantage of competitors – to the extent these are not already covered by competition law. It will also look into how to best tackle illegal content on the Internet.
12. reinforce trust and security in digital services, notably concerning the handling of personal data. Building on the new EU data protection rules, due to be adopted by the end of 2015, the Commission will review the e-Privacy Directive.
13. propose a partnership with the industry on cybersecurity in the area of technologies and solutions for online network security.

Pillar III: Maximising the growth potential of the digital economy
The Commission will:
14. propose a 'European free flow of data initiative' topromote the free movement of data in the European Union. Sometimes new services are hampered by restrictions on where data is located or on data access – restrictions which often do not have anything to do with protecting personal data. This new initiative will tackle those restrictions and so encourage innovation. The Commission will also launch a European Cloud initiative covering certification of cloud services, the switching of cloud service providers and a "research cloud".
15. define priorities for standards and interoperability in areas critical to the Digital Single Market, such as e-health, transport planning or energy (smart metering).
16. support an inclusive digital society where citizens have the right skills to seize the opportunities of the Internet and boost their chances of getting a job. A new e-government action plan will also connect business registers across Europe, ensure different national systems can work with each other, and ensure businesses and citizens only have to communicate their data once to public administrations, that means governments no longer making multiple requests for the same information when they can use the information they already have. This "only once" initiative will cut red tape and potentially save around €5 billion per year by 2017. The roll-out of e-procurement and interoperable e-signatures will be accelerated.

Lawmakers in France Move to Vastly Expand Surveillance

At a moment when American lawmakers are reconsidering the broad surveillance powers assumed by the government after Sept. 11, the lower house of the French Parliament took a long stride in the opposite direction, overwhelmingly approving a bill that could give the authorities their most intrusive domestic spying abilities ever, with almost no judicial oversight.

The bill, in the works since 2014, now goes to the Senate, where it seems likely to pass, having been given new impetus in reaction to the terrorist attacks in and around Paris in January. The provisions, as currently outlined, would allow the intelligence services to tap cellphones, read emails and force Internet companies to comply with requests to allow the government to sift through virtually all of their subscribers’ communications. Among the types of surveillance that the intelligence services would be able to carry out is bulk collection and analysis of metadata similar to that done by the United States’ National Security Agency. The intelligence services could also request the right to put hidden microphones in a room or on objects such as cars or in computers, or to place antennas to capture telephone conversations or mechanisms that capture text messages. Both French citizens and foreigners could be tapped.

Germany, Too, Is Accused of Spying on Friends

About 18 months ago, Chancellor Angela Merkel was the wronged American ally whose cellphone number was among data sucked up by American intelligence as it kept watch on Europeans. Recently, the tide has turned. Chancellor Merkel is back in the spotlight over spying. This time it is Germany’s foreign intelligence service, known here as the BND, that is being accused of monitoring European companies and perhaps individuals. Further, the reports said the spying was done at the behest of the National Security Agency, the United States intelligence organization. Critics have seized on the spying allegations, sensing a whiff of hypocrisy emanating from Berlin, given the German outrage over the American program.

Now, Spotlight Turns to AT&T-DirecTV Deal

Just three months after Comcast announced its $45 billion takeover of Time Warner Cable, its rival AT&T announced a $48 billion takeover of DirecTV. Both deals were poised to create new industry behemoths and transform the country’s media landscape. But while the Comcast transaction set off a widespread public outcry and ultimately collapsed last month under regulatory scrutiny, the AT&T-DirecTV merger proposal has largely avoided intense examination. Until now.

The spotlight has turned to AT&T’s deal for DirecTV, which -- if approved -- would unite the telecom giant with the satellite company to create the country’s largest television distributor. With about 26 million subscribers, it would surpass Comcast. Federal regulators are poring through more than 7.5 million pages of documents, hundreds of white papers and testimony by company executives to evaluate whether the AT&T-DirecTV deal will harm competition or serve the public interest. AT&T and DirecTV have both said they are confident the deal will close by the end of June.