June 2015

OTT and TV Will Coexist, and It Will Be Beautiful

[Commentary] In the case of over-the-top (OTT) and TV, history has already foreshadowed the future. When cable came onto the scene, the industry all but sounded the death knell for television. But look where we are now: Cable ultimately evolved television to the point where we make no distinction between the two. It’s all simply TV. So if there’s not going to be a decent throwdown to watch (ahem, Mayweather-Pacquiao), what’s so interesting about the future of OTT? It all comes back to storytelling.

Call it the Law of Conservation of Media. Nothing is destroyed or lost, but all that creative energy and innovation just morphs into the next generation of storytelling. OTT will not chew up and spit out traditional TV, but instead will learn to live, integrate and find its place right alongside TV. In doing so, OTT will shape the development of TV, and (eventually) seamlessly combine with it to become something bigger and better than the sum of its parts. Sure, there will be conflicts, but their resolutions won’t leave behind salted earth, rather even more fertile ground in which tomorrow’s greatest ideas can start to germinate. And it’s our job to be the drivers of this change.

[Dermot McCormack is President of AOL Video and Studios]

Fueled by Snowden and Apple, private search engine DuckDuckGo rapidly grows

The privacy-minded search engine DuckDuckGo announced that it has reached a milestone. The Google alternative now serves over 10 million searches per day. (By comparison, Google serves about 4.3 billion per day.) Back in May 2012, DuckDuckGo hit an all-time record of 1.5 million searches per day. At that time, its daily search traffic had grown by 227 percent in three months. In the three years since, DuckDuckGo has continued to grow as more Internet users have become increasingly privacy-conscious online. DuckDuckGo's traffic jumped noticeably after the Snowden revelations in June 2013, and it continued to rise after being included in the OS X Yosemite and iOS 8 versions of Safari nearly a year later. Mozilla also added it as an option to Firefox late in 2014.

Will Maine Create a $500 Municipal Broadband Fund?

The state of Maine is firmly committed to municipal broadband -- it just doesn't want to pay for it. If Gov Paul LePage (R-ME) signs LD1185, the state will create a new fund that would endeavor to provide residents with a wider array of high-speed broadband providers in the coming years. The fund would offer grants to research how municipalities might build open-access gigabit broadband networks, expanding competition in a rural state dominated by Time Warner Cable and Fairpoint Communications. When the bill was introduced, the fund was $12 million, then reduced to $6 million; now the fund is a $500 placeholder that Congress will revisit in 2016.

Originally municipalities would have been eligible to apply for up to $200,000 in funding to research the development of an open-access gigabit network. The old version of the bill required that a minimum of 50 such grants be made available, at least half of which would be granted to low-income areas. If signed, the new fund will exist in spirit, but with no funds to distribute. The organization that would distribute the funds should they become available would be the ConnectME Broadband Authority, the state’s broadband advocacy and engagement arm. Lisa Leahy, associate executive director of ConnectME, said the bill is an excellent idea that has had a lot of support from all directions.

Public Knowledge Responds to Charter’s Public Interest Statement

Charter Communications filed a public interest statement with the Federal Communications Commission to seek approval of license transfers arising from Charter’s proposed merger with Time Warner Cable and acquisition of Bright House Networks. The company claims the merger will launch “New Charter” as an “advanced, growth-oriented” Internet Service Provider. Public Knowledge acknowledges Charter’s efforts in transparency and believes the initial commitments in this document offer hope that public interest concerns can be worked out as the merger review process proceeds.

John Bergmayer, Senior Staff Attorney at Public Knowledge, said “Although we still have concerns about a merger that would make the broadband market even more concentrated, Charter's public interest statement contains some promising statements about how the company would behave with respect to the Open Internet, data caps and usage-based pricing and interconnection. If properly enforced, commitments of this sort could alleviate many of the potential harms (particularly, harms to online video) a large cable merger like this could create. However, after the merger, Charter might be able to use its power in other ways to restrict online availability of content and to control what devices people can use to access cable programming. Additionally, policymakers will have to examine Charter's broadband upgrade and build-out plans more carefully to determine if there is a sufficient public interest benefit. Charter has been at pains to emphasis how it is different than Comcast. But this merger must be judged on its own merits -- it can't get a free pass simply because other, failed mergers would arguably have been worse. We look forward to discussing our concerns with Charter and relevant policymakers moving forward.”

Accessible Communications: FCC Should Evaluate the Effectiveness of Its Public Outreach Efforts

The Federal Communications Commission established accessibility complaint and enforcement procedures within the time frames mandated by the 21st Century Communications and Video Accessibility Act of 2010 (CVAA) to ensure that people with disabilities would have access to advanced communications. CVAA was enacted to help ensure that people with disabilities have full access to the benefits of technological advances in communications. The act required FCC to establish regulations and conduct public outreach and included a provision that GAO review FCC's efforts.

GAO examined (1) the extent to which FCC established complaint and enforcement procedures within CVAA-required time frames and conducted public outreach, (2) the actions FCC has taken to ensure industry compliance with CVAA's recordkeeping provisions and to determine the level of industry compliance with accessibility requirements, and (3) stakeholders' views on the effect of CVAA's recordkeeping obligations on the development and deployment of new communications technologies. GAO reviewed FCC's regulations, orders, and biennial reports to Congress; surveyed a random sample of companies certifying compliance with CVAA requirements; assessed FCC's efforts to conduct public outreach against key practices GAO previously identified through an expert panel; and interviewed FCC officials and representatives from industry associations, consumer advocate groups, and disability research organizations selected based on CVAA-related comments they submitted to FCC. FCC should evaluate its public outreach efforts and ensure those efforts incorporate key practices. FCC concurred with the recommendation and intends to take action to address it.

It's not that complicated: Facebook is still mostly run by white men

Facebook’s latest diversity figures barely budged from 2014’s, with almost every level of the company still dominated by white men. The report, which looks at the company’s workforce as of May 31, 2015, shows that 55 percent of the social network’s US workforce is white, 36 percent is Asian, 4 percent is Latino, 3 percent is “two or more races” and 2 percent is black. The company's current US workforce is slightly more diverse than 2014’s, when 57 percent were white and 34 percent were Asian. The other ethnic groups remained the same. On the gender front, change also came in modest amounts, with women making up 32 percentof the company's global workforce, up from 31 percent in 2014. In technical roles, women now account for 16 percent of the workforce, up from 15 percent in 2014.

28 Groups join Public Knowledge in Urging Chairman Wheeler to Protect Americans in Tech Transition

Public Knowledge, joined by 28 other organizations, sent a letter to Federal Communications Commission Chairman Tom Wheeler calling on him to issue rules to protect the more than 85 million Americans and millions of small business still dependent on traditional landline service from losing access to vital services, and to preserve the stability of the telephone system and reliability of the 911 system for the more than 300 million Americans that depend on it every day.

The FCC previously recognized in two unanimous bipartisan votes in 2014 that what it calls the “Tech Transition” of our national communications network to the digital age must reflect the fundamental values that have governed our communications system for the last hundred years, including guaranteeing reliable, affordable service to all Americans and protecting access to public safety services such as 911. But the purely market-driven process driving the transition to date has resulted in many Americans experiencing degraded phone service and an alarming increase in 911 outages. Harold Feld, Senior Vice President at Public Knowledge, said, "Chairman Wheeler must act quickly to ensure that the transition of the phone system is an upgrade for everyone -- not an upgrade for some and a downgrade for the rest of us."

[The Benton Foundation was a co-signing organization]

DOJ presses competition case in wireless spectrum auction

The Department of Justice said that the Federal Communications Commission should give “considerable weight” to competition concerns when deciding whether to expand the block of wireless spectrum reserved for smaller carriers in a coming auction. The size of the reserve is the subject of a public fight between T-Mobile and the two largest players in wireless, AT&T and Verizon. In the letter, the chief of the Antitrust Division of the Department of Justice seemed supportive of T-Mobile’s case. “The Department recognizes that the Commission must balance competing policy priorities in setting the appropriate reserve levels,” said Assistant Attorney General William Baer in the letter. “In balancing these priorities, the Department urges the Commission to give considerable weight in determining the amount of spectrum included in the reserve to protecting and promoting competition, and the well-established competition principle that those with market power may be willing to pay the most to reinforce a leading position.”

Baer also said the auction should take place as soon as possible. Baer did not explicitly call for the reserve to be expanded. Still, the letter is a small victory for T-Mobile, which sent its chief executive to Washington to meet with regulators and asked customers to appeal to the FCC. But the company's efforts may be dealt a blow Thursday, when FCC Chairman Tom Wheeler could submit his reported recommendation to the commission that they keep the size of the reserve at 30 megahertz. The proposal would come up for a vote at the commission’s July meeting.

Dotcom Act Clears Senate Commerce

The Senate Commerce Committee favorably reported the Dotcom Act out of committee. That is the same bill the House approved overwhelmingly (378 to 25) on June 23. The bill provides for congressional oversight of a US government handoff of oversight of the Internet domain naming function, while not unduly delaying that transition, say its supporters, which are on both sides of the aisle. The handoff of the Internet Assigned Numbers Authority (IANA) from oversight by the National Telecommunications & Information Administration to a multistakeholder model won't be ready by the Sept. 30, 2015 expiration date of the current contract with ICANN (the Internet Corporation for Assigned Names and Numbers), a nonprofit created by the U.S. in 1997.

The bill requires that Congress get 30 days to vet any transition plan, and take action to block or modify it if it does not pass muster. Sen Ted Cruz (R-TX) proposed an amendment that would have required Congress to sign off on the plan before it could be implemented, rather than allowing it to take affect unless the Congress acted to block or modify it. He said the result could easily be that Congress could not get its act together in 30 days and "the Internet would be handed over." He said his amendment would simply reverse the presumption and require Congress to debate and vote on it.

The Right Time for a National Digital Inclusion Alliance

[Commentary] There is a clear need among non-profit organizations and libraries for a national broadband adoption advocacy organization. Three federal agencies (National Telecommunications and Information Administration, Housing and Urban Development, Federal Communications Commission), plus the White House, are focusing significant attention and possibly significant resources on broadband adoption. How significant the resources will be could depend upon strong advocacy by broadband adoption practitioners in non-profit organizations and libraries. To meet this need, I am pleased to announce the creation of the National Digital Inclusion Alliance, and an opportunity to work together on common broadband challenges. Key Polices That Can Increase Broadband Adoption in the United States:

  1. The FCC plans to initiate a rulemaking process in summer 2015 to include broadband as an allowable use of Lifeline funds for low-income Americans. Lifeline currently provides a discount on phone service for qualifying low-income consumers. An expanded Lifeline program with funding available to support the cost of broadband for low-income consumers could be incredibly helpful to raising broadband adoption rates in the United States.
  2. The President’s interagency Broadband Opportunity Council (BOC) sought public comment on how federal agencies can promote broadband deployment, adoption, and competition. The Council, which is comprised of 25 federal agencies, is tasked with developing a framework of recommendations to explore ways to remove unnecessary regulatory and policy barriers, incentivize investment, and align funding polices and decisions to support broadband access and adoption. The BOC’s Request for Comments provided an opportunity for NDIA to gain public attention (and action!) on specific ways federal agencies can modernize current programs to increase broadband adoption without Congressional action. Comments were due June 10, 2015, and NDIA submitted comments with specific suggestions on how a variety of programs can be modernized to include support for public access, home broadband service and local training and support.

The evidence is clear. To successfully increase broadband use in the US we must have low-cost options AND local training/support, including a diverse set of local partners with established roots in the community.

[Angela Siefer is the Director of the National Digital Inclusion Alliance]
[Benton Foundation's Director of Policy, Amina Fazlullah, is part of the Digital Inclusion Alliance's Founding Council]