June 2015

Sens Wicker, Rubio, Ayotte, Gardner, Johnson Introduce Wireless Innovation Act

Senate Communications Subcommittee Chairman Roger Wicker (R-MS), joined fellow members of the Senate Commerce Committee, Sens Marco Rubio (R-FL), Kelly Ayotte (R-NH), Cory Gardner (R-CO), and Ron Johnson (R-WI) to introduce the “Wireless Innovation Act of 2015,” a bill to reallocate spectrum used by the federal government for commercial wireless services, ensure greater transparency and accountability of the federal government’s spectrum use, and promote wireless innovation and deployment. The Wireless Innovation Act of 2015 would:

  • Require NTIA to identify and reallocate 200 MHz of spectrum below 5 GHz and currently allocated primarily to the federal government for commercial mobile use (140 MHz for licensed use; 40 MHz for shared; 20 MHz for unlicensed use)
  • Establish an auction pipeline to ensure the 200 MHz of spectrum identified by NTIA is reallocated in a clear, predictable manner
  • Allocate portions of the auction proceeds be made available to federal entities for conducting research and development and other engineering activities, and more.

How your cell phone taxes help poor people

[Commentary] Every month, Uncle Sam adds a 6 percent tax onto your wireless bill. It's part of an 81-year old program called the Universal Service Fund, and it's likely to get a makeover on June 18. Collecting taxes from wireless bills creates an $8.5 billion fund that the Federal Communications Commission distributes to develop broadband service in rural America and to connect schools and libraries. A third part of the USF, set to be revamped June 18, subsidizes wireless service for poor people who can't afford to pay their cell phone bills.

About 18 million people who are eligible for food stamps and Medicaid receive $9.25 a month for cell phone subsidies through that USF program known as "Lifeline." On June 18, the FCC is voting whether to expand Lifeline by allowing recipients to decide whether to spend that $9.25 on phone service or broadband. With three Democrats sitting on the five-person committee, the new rules are expected to pass. The Lifeline plan is not without controversy, particularly among conservatives because of its $2 billion annual price tag. It became even more unpopular in the wake of a 2012 corruption scandal in which instances of Lifeline fraud emerged. Cell phone providers were found to be enrolling ineligible people into the program.

Chairman Wheeler Expounds on AT&T Proposed Fine

FCC Chairman Tom Wheeler drilled down into the proposed $100 million AT&T fine for its Maximum Bit Rate plan, saying that the Federal Communications Commission had still not come up with a final decision, which would come after AT&T offered up its response to the proposal. But he suggested that could ultimately include consumer refunds as well as the proposed fine. "Right now, our authority is to levy a fine," he said. While he said it was premature to talk about whether refunds could result from any settlement that might result from the process, "it is not at this point in the NAL, but it is a possibility it could evolve."

Chairman Wheeler made clear that while AT&T would still be making its case, he thought the company had not been sufficiently transparent about its "unlimited" plan and the limits on speed it included in some cases. That came in a press conference following the FCC's June public meeting June 18, at which he was asked about possible legislation out of the Senate Commerce Committee that would allow companies like AT&T to challenge such fines before they were proposed. Chairman Wheeler said that the 2010 Open Internet order transparency rules are explicit that there had to be "sufficient explanation" of carrier activities. He said in this instance, the term "unlimited" that AT&T used wasn't unlimited and the policy wasn't explained. "They said that it [the policy] applies to the top 5 percent of data subscribers. How am I supposed to know I am in the top 5 percent," he said. "How is that a sufficient explanation?" He also said there was no notice about what the slowdown would be, and how much reduction, and no explanation of what the impact of that would be "on the way I used what I thought I had bought."

NTIA Releases Report Furthering President’s Commitment to Identifying Spectrum for Commercial Wireless Broadband

The National Telecommunications and Information Administration (NTIA) released an important technical report developed by engineers in NTIA’s Office of Spectrum Management (OSM) and Institute for Telecommunication Sciences (ITS) that provides the technical analysis supporting spectrum sharing in the 3550-3650 MHz band. It serves as a concrete example of our efforts to make more spectrum available to meet the exploding demand for commercial wireless broadband while protecting mission-critical Federal systems.

The Federal Communications Commission (FCC) in April approved an innovative regulatory framework that would enable commercial access to 150 megahertz of spectrum in the 3.5 GHz band. This framework grew out of NTIA’s 2010 Fast Track Report, which identified the 3.5 GHz band as a possible candidate for spectrum sharing to fulfill the President’s goal of identifying 500 megahertz of additional spectrum for commercial wireless broadband by 2020. Federal agencies are currently using this spectrum to operate military shipborne, ground-based, and airborne radar systems.

Big 4 Affiliates Seek AT&T/DirecTV Local-Into-Local Condition

The Big Four network affiliate associations have joined the National Association of Broadcasters in asking the Federal Communications Commission to require DirecTV to carry TV stations in all 210 TV markets if it wants to be able to merge with AT&T. Satellite operators have to carry all TV stations in markets where it carries any, but has no general must-carry mandate as do cable operators.

In a filing to the FCC, which is currently vetting the AT&T/DirecTV merger proposal, the ABC Television Affiliates Association, CBS Television Network Affiliates Association, FBC Television Affiliates Association, and the NBC Television Affiliates pointed out that Dish and AT&T U-verse deliver local stations in all their markets. By contrast, there are 11 markets (among the smallest) where DirecTV does not deliver any stations. They said that without the condition, a merged company would be even less likely to provide local-into-local service in those 11 small markets. But they said requiring it to do so would help ameliorate the harms of allowing the merged company of having the "competitive advantage" of not having the obligation to serve every market.

House Committee Nixes New Funding for White House Digital Service Team

The House Appropriations Committee approved a 2016 spending bill that would limit funding for the White House’s elite digital fix-it squad. Under the House plan, spending for Office of Management and Budget’s “information technology oversight and reform” fund would stay flat next year -- about $20 million. In addition to providing scaled-up funding for the US Digital Service, the fund also supports a handful of other governmentwide IT initiatives.

The White House requested $35.2 million for the fund in fiscal 2016 -- a $15 million boost from current levels. The committee offered few reasons for opposing an expansion of Digital Service funding. The committee report attached to the 2016 funding bill uses standard language also found in 2014’s report: “The committee expects OMB to improve the processes used to develop information technology systems. Using information technology to engage citizens can be a powerful and efficient tool but only if the systems work and citizens have confidence in them.” But it does not provide the Administration’s requested funding.

Adviser: FCC Isn't the Place for Big Data Experimentation

Communicating the value of playing around with data is a challenge in the federal government, according to a senior adviser at the Federal Communications Commission. When asked recently what the best way is to convince agency leadership to take on data pilots, especially when outcomes are unclear, Tony Summerlin said, "saying that you can do something else with the data, which is not what they envisioned [being] the outcome, is really hard." FCC staff has been able to do "little experiments" with data, Summerlin said. That includes analyzing the roughly 4 million public comments submitted on the FCC website about net neutrality, identifying which groups were most likely to use swearwords, for instance.

The FCC released data about the comments so outside groups, including the Sunlight Foundation, could analyze it further, he added. Federal employees, Summerlin said, will likely have to "open someone's eyes to another use of data, but in a regulatory environment like ours, it's very specific what you're supposed to use that data for." The FCC "would not be the place where that kind of experimentation would work," Summerlin said -- though he said he suspected, based on past experience in other agencies and in the White House, the culture is different."We got to play with data however we wanted to," he said, adding later, "experimentation like that is what leads to great outcomes."

Can liberal musicians stop Republicans from using their songs?

[Commentary] Despite the fact politicians usually stop playing songs when asked, songwriters could fight it if they really wanted to. According to the American Society of Composers (ASCAP) guidelines on using music in political campaigns, if campaigns obtain a public performance license from them or other performing rights organizations like Broadcast Music, Inc (BMI), they're in compliance with copyright law, which is why campaigns always first respond to statements from angry musicians by saying they were following the rules. But being in compliance with copyright rules doesn't mean musicians can't complain and even take legal action -- which is why the ASCAP advises campaigns get permission from artists' management and songwriters as well, to avoid all this.

Per the ASCAP, musicians could seek recourse through their right to publicity (which public figures have for their image in some states), false endorsement (an argument that their work is being used to incorrectly imply support for something) or the Lanham Act (dealing with unauthorized use of a trademark leading to confusion). So there are legal grounds for them to fight the song's use. But there's not much precedent for that happening, because campaigns generally give in to musician's demands so quickly.

FCC Commissioner Rosenworcel Announces Departure of Priscilla Delgado Argeris

Commissioner Jessica Rosenworcel announced that her Senior Legal Advisor, Priscilla Delgado Argeris, is departing her office at the Federal Communications Commission. Commissioner Rosenworcel said of the announcement: “Priscilla has been a trusted advisor who has been by my side since the very earliest days in my office. I have benefited immeasurably from her counsel, as has the Commission as a whole. She is a fantastic public servant, policy whiz, and eagle-eyed lawyer. She does it all -- with a terrific mix of discipline, eloquence, and grace. I am proud to have worked with her and even more grateful to be able to call her a friend. I wish her well as she moves with her family to North Carolina. The Tar Heel state is lucky to have her because wherever she goes and whatever she does, Priscilla will do great things."

FCC Strengthens Consumer Protections Against Unwanted Calls and Texts

The Federal Communications Commission adopted a proposal to protect consumers against unwanted robocalls and spam texts. In a package of declaratory rulings, the FCC affirmed consumers' rights to control the calls they receive. As part of this package, the FCC also made clear that telephone companies face no legal barriers to allowing consumers to choose to use robocall-blocking technology. Highlights for consumers who use either landline or wireless phones include:

  • Green Light for 'Do Not Disturb' Technology -- Service providers can offer robocall-blocking technologies to consumers and implement market-based solutions that consumers can use to stop unwanted robocalls.
  • Empowering Consumers to Say 'Stop' -- Consumers have the right t o revoke their consent to receive robocalls and robotexts in any reasonable way at any time.
  • Reassigned Numbers Aren't Loopholes -- If a phone number has been reassigned, companies must stop calling the number after one call.
  • Third-Party Consent -- A consumer whose name is in the contacts list of an acquaintance's phone does not consent to receive robocalls from third-party applications downloaded by the acquaintance.

Highlights for wireless consumers include:

  • Affirming the Law's Definition of Autodialier -- "Autodialer" is defined in the Act as any technology with the capacity to dial random or sequential numbers.
  • Text Messages as Calls -- FCC reaffirmed that consumers are entitled to the same consent-based protections for texts as they are for voice calls to wireless numbers.
  • Internet-to-Phone Text Messages -- Equipment used to send Internet-to-phone text messages is an authodialer, so the caller must have consumer consent before calling
  • Very Limited and Specific Exemptions for Urgent Circumstances.

June 18th's actions makes no changes to the Do-Not-Call Registry, which restricts unwanted telemarketing calls, but are intended to build on the Registry's effectiveness by closing loopholes and ensuring that consumers are fully protected from unwanted calls, including those not covered by the Registry.