June 2015

Chairman Wheeler: FCC is Net Neutrality 'Referee'

Federal Communications Commission Chairman Tom Wheeler signaled June 18 that the interconnection deals struck in the shadow of the FCC's new network neutrality order are something of a template of how the FCC wants the new rules to work in encouraging marketplace solutions. In a press conference following the FCC's public meeting, Chairman Wheeler said the way he expected "the players, in this case the companies [he was pivoting from a football analogy] will work between and among themselves to resolve any problems, to resolve disputes."

He said the FCC's role was to be the referee (pivoting back to the football metaphor) and throw the flag when the rules get violated, "when something is clearly untoward." He said that the FCC has seen already, in interconnection agreements, that "just the fact that the FCC is on the field has allowed the players to come together and find mutually agreeable solutions." He suggested that was the game plan for other parts of the Open Internet order. "I think it is a good precedent for the kinds of things that we hope come," he said. Backbone providers Level 3 and Cogent have both struck some interconnection deals with ISPs in recent weeks, but still have some in the pipeline and have suggested if they aren't struck to their satisfaction, they would be asking the FCC to throw a flag.

Electronic Frontier Foundation Report Charts Companies on Next Frontier of User Privacy

“Who Has Your Back” evaluates 24 companies, awarding up to five stars in categories like “tell users about government data requests” and “publicly disclose the company’s data retention policies.” Nine companies earned stars in every category available to them: Adobe, Apple, CREDO, Dropbox, Sonic, Wickr, Wikimedia, Wordpress.com, and Yahoo. 2015’s “Who Has Your Back” marks a new era in EFF’s annual report. The best practices that we outlined in earlier years have become tech industry standards.

So in 2015, the first star includes the all the main principles from prior reports rolled into a single category called “Industry-accepted best practices.” Four new categories hold companies to an even higher standard of supporting their users’ privacy. “Every day, our digital lives require us to trust the digital services we use more and more, and consumers deserve clear and reliable information about policies and procedures that protect them,” said EFF Staff Attorney Nate Cardozo. “It’s time for all companies to take their users’ privacy seriously and reach the new standards we’ve laid out in ‘Who Has Your Back.’”

6 Tips for Protecting Your Communications From Prying Eyes

[Commentary] Here are some ways to keep your communications private. While these tips were designed for journalists and confidential sources, they're just as useful for protecting any private communications, such as a conversation between family members, or a confidential business dealing. The key is to figure out your communication strategy. First, decide if you are trying to hide WHO you are talking to (metadata) or WHAT you are talking about (content), or BOTH. In each case, there are both high-tech and low-tech ways to evade surveillance.

If you are trying to mask WHO you are talking to, consider three tactics that I call ACE -- which stands for "Add Noise, Cloak or Evade."

  • Add noise means fuzzing the metadata by adding false connections or false content to the communications.
  • Cloak means using alternate identities.
  • Evade means avoiding metadata collection.

If you are trying to mask WHAT you are talking about, I suggest three strategies that I call HEM -- which stands for "Hide, Encrypt or Mask."

  • Hide means hiding the existence of the content, by placing it in a secret compartment either physically or digitally.
  • Encrypt means to make content unreadable to outsiders using cryptographic techniques.
  • Mask means disguising the content as an innocuous other type of content.

Sens King, Capito Introduce Bill to Give Low-Income, Rural Students Educational Tools Needed to Succeed

Sens Angus King (I-ME) and Shelley Moore Capito (R-WV) introduced the Digital Learning Equity Act of 2015, major legislation that would support innovative ways to improve student access to the Internet and other digital learning resources outside of the classroom. The Digital Learning Act of 2015 aims to narrow the growing digital divide by supporting innovative ways to ensure students stay connect and extend access to digital learning opportunities when the leave the classroom.

This bill would support states and school districts in piloting creative methods to increase student access to digital learning resources outside of the school day with the goal of increasing student, parent, and educator engagement and improving the ability of students to participate in new learning models, apply for work opportunities, and fill out college applications and financial aid forms. The legislation also directs the US Department of Education’s Institute of Education Sciences to conduct a national study of the data associated with this growing digital divide, including information on the barriers to students having Internet access at home, how educators are adjusting classroom instruction to cope with this challenge, and how a lack of home Internet access impacts student participation and engagement.

Google Critics Get a Month to Comment on EU Antitrust Charges

European antitrust regulators have sent copies of their charges against Google to critics of the US tech giant and given them a month to comment, one of the complainants said. The move by the European Union competition watchdog may boost its case against the search engine, which it accuses of abusing its market power and cheating consumers and rivals by distorting search results to favor its shopping service.

Nineteen companies, including Microsoft, US online travel site TripAdvisor, British online mapping service Streetmap, French comparison site Twenga and lobbying group ICOMP, are expected to get the EU charge sheet. “We received the redacted statement of objections today. We are invited to comment within a four-week period. It comes with strict confidentiality, so we cannot disclose anything about it other than to our legal counsel,” one of the complainants said. The European Commission declined to comment. Google was not immediately available to comment. Complainants who triggered the commission’s investigation into Google nearly five years ago can also attend a closed-door hearing to argue their case, should Google ask for one. Google has been given until July 7 to respond to the accusations but can ask for an extension.

Verizon ordered to finish fiber build that it promised but didn’t deliver

New York City officials ordered Verizon to complete fiber builds that the company was supposed to finish in 2014. If Verizon doesn't comply, the city can seek financial damages. "In a 2008 agreement with New York City, Verizon committed to extend its FiOS network to every household across the five boroughs by June 30, 2014," said the announcement of an audit released today by the city's Department of Information Technology and Telecommunications (DoITT).

Verizon's FiOS fiber network delivers Internet, TV, and phone service to areas traditionally served by Verizon's copper landlines and DSL Internet. “Through a thorough and comprehensive audit, we have determined that Verizon substantially failed to meet its commitment to the people of New York City,” Mayor Bill de Blasio said. “As I’ve said time and again, Verizon must deliver on its obligation to the City of New York and we will hold them accountable.” The agreement, which gave Verizon a cable television franchise, says NYC may "seek and/or pursue money damages" from Verizon if it fails to deliver on its promises. Verizon also failed to meet broadband promises in Pennsylvania and New Jersey, but those states let the company off the hook.

NTCA: Rural Fiber Deployments Fueling Dramatic Increases in Higher Speed Broadband Take Rates

NTCA-The Rural Broadband Association represents rural broadband carriers, most of whom have roots as rural telecommunication companies. Broadband carrier is probably a better descriptive term these days, as many those ‘telcos’ also count cable TV, wireless (fixed and mobile), and cloud services as a part of their service portfolio. They recently published results from their annual Broadband/Internet Availability Survey, conducted in the Winter of 2014. Deploying fiber based services remains a priority for NTCA members, with 39 percent of survey respondents citing the use fiber-to-the-premises (FTTP) technology in their networks today.

Among current FTTP providers, 25 percent say they can reach their entire customer base with the technology. A little less than half (45 percent) of current FTTP providers reach at least half of their customer base with the technology, according to the results. Rural customers, like their urban counterparts, are subscribing to faster broadband speeds. Roughly one-third (33.6 percent) of NTCA carrier member customers are taking a broadband tier of 10 Mbps or more, the highest subscribed to category. That’s a dramatic increase from a year ago, where NTCA reported that only 8.5 percent subscribed to a similar tier, an improvement of almost 400 percent. The survey report didn’t offer any additional detail of the actual speeds offered beyond “above 10 Mbps.”

Nokia Wins US Antitrust Approval for Alcatel-Lucent Deal

Nokia Oyj won US antitrust approval for its 15.6 billion-euro ($17.6 billion) takeover of French telecommunications-equipment rival Alcatel-Lucent SA. The Justice Department granted early approval to the deal, moving the two companies one step closer to completing the transaction, they said. “The parties continue to make good progress with the regulatory approval processes in the remaining relevant jurisdictions,” they said. “Both companies will continue to cooperate with the remaining authorities to close their reviews as quickly as possible.”

Nokia and Alcatel-Lucent need permission from more than 20 competition regulators around the world to proceed with the takeover, including in China and the European Union, according to Nokia. Besides the Justice Department, they said they have obtained clearances in Brazil and Serbia. In the US, Espoo, Finland-based Nokia is also seeking approval from a national security panel known as the Committee on Foreign Investment in the US. CFIUS, which is led by the Treasury Department, reviews foreign acquisitions of US businesses to protect national security. CFIUS cleared Alcatel’s acquisition of Lucent Technologies in 2006 after negotiating a national security agreement with the French company.

Charter CEO’s 'Texas Two-Step'

Charter CEO Tom Rutledge may be known as a consummate cable operator, having led Cablevision Systems and Charter Communications through some rough waters, but he knows how to dance around an onerous regulatory framework as well, using something known back in his early days at Time Warner Cable as the “Texas Two-Step.” Charter agreed in May to purchase TWC in a deal valued at $78.7 billion. The transaction, which still needs approval from the Federal Communications Commission, is expected to close by the end of 2015.

Recently, Rutledge reminisced about his early career with Time Warner Cable -- his first job was with a predecessor company American Television Co. (ATC) -- and in particular, his first stint at corporate in the 1990s as a regulatory strategist. Rutledge took that job just as the 1992 Cable Act was imposed, the regulation that stymied industry investment and forced many operators to roll back rates. Rutledge said at the time the ‘92 Act was introduced he was working in Austin (TX) read the document in its entirety and “came up with an operational strategy to take the company forward.” “…And so we did a thing we called the Texas Two-Step, was the way it was named internally in Time Warner,” Rutledge said. “And it was a way of taking a la carte for some services and selling them under the rules, and at the same time being rate regulated under other parts of the rules. But it allowed us to continue to grow and fund the upgrading of the plant which we were doing then.” Whether that will work under an FCC Title II regime is anyone’s guess, but it could come in handy as the combined company moves ahead.

Brian Williams Gets New Role at Lower Salary

NBC said that Brian Williams would stay with the network but was being removed as the evening news anchor after he made numerous “inaccurate statements” about his experiences in the field. Williams will join MSNBC as anchor of breaking news and special reports.

The move is a humbling blow for him both professionally and financially. Apparently, Williams will earn less money in his new role than he was as anchor of the “Nightly News,’’ according to an NBC executive with knowledge of the agreement. The person characterized it as “substantially’’ less money, but would not be more specific. Under a contract Williams signed in December, he was reported to be making at least $10 million a year over five years. Lester Holt, 56, an NBC veteran who has been filling in for Williams, will become chief anchor of the “Nightly News.’’ He is the first African-American to serve as solo anchor of a weekday evening newscast.