May 2015

[Commentary] Sen Rand Paul (R-KY) has fastened his presidential candidacy to restricting the US’s collection of telephone data about terrorist groups, such as Islamic State. His awkward geopolitical timing makes this a long shot.

On May 13 the House, including many self-described libertarian Republicans, voted 338-88 to pass what it calls the USA Freedom Act, which would stop the National Security Agency’s “bulk collection” of telephone records. The act removes telephone calling data from the National Security Agency’s servers and transfers custody to big phone carriers such as Verizon, AT&T, Sprint and T-Mobile. If the NSA wanted to pursue a suspected terrorist’s phone traffic, it would have to ask a judge, and then the agency’s officials would interface with the telephone company about finding the data on their servers. Sen. Paul says even the arduous USA Freedom Act doesn’t do enough to limit the NSA. The NSA’s protective surveillance program is already an exercise in preserving liberty. What comes after it will not be. Allowing the worse alternative may be the only way the Congress we’ve got will relearn the difference.

[Commentary] The real winner of the failed Comcast-Time Warner Cable deal became abundantly clear: It was Time Warner Cable. Federal regulators opposed Comcast's $45-billion acquisition on the grounds that combining the first- and second-largest cable TV operators would threaten competition in the emerging market for online video services, among other concerns. But when Comcast dropped its bid, that opened the door for Time Warner to sell itself to Charter Communications for $57 billion in cash and stock — 25% more than Comcast was prepared to pay. Whether this is a good thing for anyone else, however, is an open question.

The merger would create a company about half the size of the one Comcast tried to create, and neither Charter nor Time Warner Cable owns a major Hollywood studio (unlike Comcast). That means the new company would have less ability or incentive to compete unfairly with online video providers. But as Federal Communications Commission Chairman Tom Wheeler said, "an absence of harm is not sufficient." Under the FCC's public interest test, the commission will want to see benefits for consumers too. So what might those be? In a presentation to investors, Charter said consumers stood to gain upgraded broadband networks offering faster speeds at lower prices, as well as unspecified innovations, improved customer service and more Wi-Fi connections for customers away from home. It also pledged to extend its networks into new areas — to serve business customers, who already have plenty of broadband options, not consumers, who don't.

Ideally, Charter would try to grow in Los Angeles and across the country by competing with Time Warner Cable. Instead, it is seeking regulators' approval for a shortcut, which is why it needs to show a public benefit. The deal may not raise red flags as quickly as Comcast's, but Charter still has to deliver a real, measurable payoff to consumers — not just to Time Warner Cable's shareholders.

After many misfires, Silicon Valley is once again betting it can transform television—this time by letting TVs run apps as diverse as those on smartphones. Google and Apple are urging software developers to show the kind of creativity on the big screen that they have on smartphones. The effort revolves around new set-top boxes and TV sets, which the technology companies are positioning as platforms for all manner of interactive experiences in addition to conventional television programming.

An unusual investigation using publicly available videos, smartphone photographs and satellite images shows that Russia is continuing to defy the West by conducting protracted military operations inside Ukraine, according to an independent report. Independent experts have operated like digital Sherlock Holmeses, using Google’s Street View, YouTube, Instagram, Twitter, satellite photographs and Russia’s version of Facebook, including social media updates by Russian soldiers. That research was then supplemented by more traditional sources like court documents and local media reports.