May 2015

Hearing on the FCC’s Lifeline Program

Subcommittee on Communications, Technology, Innovation, and the Internet
Senate Commerce Committee
Tuesday, June 2, 2015
9:30 a.m.
http://www.commerce.senate.gov/public/index.cfm?p=PressReleases&ContentR...

The subcommittee’s hearing will examine the Federal Communications Commission’s (FCC) progress in reforming Lifeline, a government program that subsidizes monthly telephone services for eligible low-income participants, and how to prevent waste, fraud, and abuse in the program. The hearing follows the Government Accountability Office's (GAO) recent report recommending that the FCC evaluate the efficiency and effectiveness of Lifeline.

Witnesses:

  • Randolph May, President, Free State Foundation
  • Michael Clements, Acting Director, Physical Infrastructure Issues, Government Accountability Office (GAO)
  • Scott Bergmann, Vice President, Regulatory Affairs, CTIA - The Wireless Association
  • Commissioner Ronald A. Brisé, Florida Public Service Commission, National Association of Regulatory Utility Commissioners (NARUC)
  • Jessica Gonzalez, Executive Vice President and General Counsel, National Hispanic Media Coalition


A Lifeline for Low-Income Americans

The Lifeline program was established in 1985 to help low-income Americans afford access to vital communications. But as communications technologies and markets evolve, the Lifeline program also has to evolve to remain relevant. Today, we take the first step in that process. I am circulating new proposals to “reboot” Lifeline for the Internet age.

First, we propose to make Lifeline more efficient and impactful by establishing minimum standards of service for voice and broadband, so both beneficiaries and those who pay into the fund can know that they are getting the best value. But establishing minimum service levels is not enough to ensure that this program is serving its core mission. We also propose an overhaul of the way we determine eligibility for Lifeline. Currently, Lifeline providers are responsible for ensuring eligibility, a situation that invites waste and fraud while burdening those providers who do want to comply. We also ask about ways to target the Lifeline subsidy to those low-income consumers most in need of the support, which is one of the reform principles advanced by my colleague Commissioner Michael O’Rielly. We also seek comment on how to encourage more providers to participate in the program, increasing competition and consumer choice on price and service offerings. Getting Lifeline reform right won’t be easy. Fortunately, Lifeline reforms adopted in 2012 put the program on stable footing and laid the foundation for a comprehensive overhaul. I look forward to working with my colleagues to resolve the difficult questions before us. In particular, I want to commend Commissioner Mignon Clyburn for driving the important effort to further eliminate waste in the program and re-focus the program to better serve those who need it most.

Benton Welcomes Step to Make Broadband More Affordable

The Federal Communications Commission’s January 2012 reforms of its Lifeline program have saved US ratepayers billions, strengthening oversight and eliminating waste, fraud and abuse. With these reforms now implemented, the Benton Foundation welcomes today’s action by FCC Chairman Tom Wheeler to take the next step and modernize Lifeline to reflect the reality of 2015: home broadband service is no longer a luxury, but an essential service for education, public health, public safety, jobs and the economy.

In 1996, Congress decided that “universal service” should be an evolving level of telecommunications services. Broadband services to the home are widely deployed and subscribed to by households that can afford them. Now is the time for the FCC to begin support for families that are not able to afford broadband. In addition to Chairman Wheeler, FCC Commissioners Mignon Clyburn and Jessica Rosenworcel have articulated the need to modernize the Lifeline program. Benton thanks them for their efforts.

Today’s Internet users are still being hurt by ’90s-era US encryption policies

Another week, another dire warning about the technology used to secure online communications. Internet security researchers are warning about a previously undisclosed vulnerability that affected all modern Web browsers -- a weakness that could allow an attacker to snoop or even change communications thought to be secure. The origins of the problem can be traced to the 1990s, when the government waged a policy debate know as the "Crypto Wars" over the digital technologies now widely used to keep online communications safe. But the debate, once counted as a win by privacy advocates, is now raging again -- and technologists warn it could have similarly dire consequences.

The government classified encryption -- a process that scrambles up information so that only those authorized can decode it -- as a munition and tried to limit the spread of the most robust forms outside the United States through strict export rules on military technologies. But even though the United States reversed course by the end of the decade, the rules were so ingrained in technologies that make the Web run, they're still causing problems today. Long after the most restrictive export rules on encryption have been lifted, the legacy of that policy is still leaving Internet users around the world less secure, experts say.

AT&T, DirecTV push back against restrictions on proposed merger

AT&T and DirecTV are pushing back against conditions other companies want to impose on their proposed merger. “Opponents continue to propose a laundry list of additional conditions that are unrelated to this transaction, unnecessary to address any transaction-specific harm, or both,” the companies said in a filing posted by the Federal Communications Commission on May 27.

The filing comes after Dish and backbone Internet service provider Cogent Communications asked that the post-merger company be required to offer stand-alone broadband service -- Internet service that customers can buy without a voice line -- at certain speeds and prices for seven years AT&T has already agreed to offer stand-alone broadband for three years. But the company says they should not be forced to do so for a longer period, because they will not be getting more broadband infrastructure when it buys DirecTV. “In the absence of any increased consolidation of broadband ownership, there can be no justification to require AT&T to provide standalone broadband at below-market prices for an extended period, as some Opponents have urged,” the companies said in their filing.

FCC Yet to Restart AT&T/DirecTV Shot Clock

The cable and broadband deals will soon be lining up at the Federal Communications Commission -- Charter/Time Warner Cable and now Avago/Broadcom -- with the shot clock yet to restart on the FCC’s vetting of the AT&T/DirecTV deal, though that does not mean the merger-review team is not vetting the deal. The clock has been stopped since March -- on day 170 of the informal 180 deadline -- at the time ostensibly to let a federal court decide the issue of access to third-party contracts. That was decided a month ago. Apparently, the clock is a guideline and can be stopped for other reasons outside the FCC's control, like still needing more documents.

UN report: Encryption is important to human rights -- and backdoors undermine it

A new report from the United Nation's Office of the High Commissioner for Human Rights says digital security and privacy are essential to maintaining freedom of opinion and expression around the world -- and warns that efforts to weaken security tools in some countries may undermine it everywhere. The report written by special rapporteur David Kaye says that encryption -- the process of digitally scrambling information so that only authorized persons can access it -- and anonymity tools "provide the privacy and security necessary for the exercise of the right to freedom of opinion and expression in the digital age." The report will be presented to the UN Human Rights Council in June. The report recommends against backdoors, saying "[s]tates should avoid all measures that weaken the security that individuals may enjoy online, such as backdoors, weak encryption standards and key escrows."

ACLU: Feds should offer rewards for finding cybersecurity flaws

The American Civil Liberties Union is calling on federal officials to make it easier for people to report security flaws in government computer systems, including by offering rewards. The group told the Department of Commerce Internet Policy Task Force in a letter on May 27 to provide financial incentives for security researchers who bring flaws to the government's attention. Such rewards are common practice at large tech firms. “For far too long, researchers who discovered a security vulnerability have had to make a difficult choice: do the right thing -- by telling the company responsible for the software or warning the general public -- or sell the vulnerability, often to a government, which would then quietly exploit that flaw for its own gain,” the group said in its letter. “In an effort to disrupt this shadowy grey market and to provide some financial reward to researchers who notify the responsible vendor or developers, some leading technology companies have created 'bug bounty' programs.” The civil liberties group noted that the US government often pays researchers for vulnerabilities so that federal law enforcement can exploit them -- but does not offer payment for simply notifying developers about flaws in their work.

NSA surveillance reform: Achieving a better balance

[Commentary] As of this writing, the most likely option over the coming weekend (May 29-31) is for the Senate to concede and pass the House USA Freedom Act before the deadline (though even this solution might be upended by objections from Sen Rand Paul (R-KY)). If, however, the deadlock remains and Congress must go back to the drawing board, what follows are suggestions for improvement of the House bill.

If the opportunity presents itself, some of the weakening provisions conceded to the House Intelligence Committee should be revised. Most particularly, amici should be given independent authority to request information, and they should have access, where necessary, to technical specialists. They should also be entitled to all relevant information passed on by the Attorney General. Finally, the broader construction language regarding “novel and significant interpretations of the law” should be reinstated to provide a wider remit for advisory opinions by the amici. These suggestions are made with the understanding that there are no perfect tradeoffs between privacy and security, but in the hope that they better reflect a viable balance.

[Claude Barfield is a former consultant to the Office of the US Trade Representative]

Should absence of harm be sufficient for merger approval?

[Commentary] After Charter and Time Warner Cable announced their intention to merge, Federal Communications Commission Chairman Tom Wheeler released a statement noting that "an absence of harm is not sufficient" to approve a merger. But it should be. Why would the government block a merger it believes isn't bad? Perhaps Chairman Wheeler felt the need to backpedal after reportedly calling Charter and Time Warner Cable CEOs to assure them that he's not opposed to all mergers. Even so, his statement again raises the question of how the FCC evaluates mergers.

[Wallsten is vice president for research and senior fellow at the Technology Policy Institute]