June 2015

FCC's Sohn Remarks: "Halftime at the Wheeler FCC"

If I had to use a football metaphor to describe where we are at the Federal Communications Commission today, I would say that we'ere at halftime -- although without rest or refreshments. FCC Chairman Tom Wheeler was sworn in 19 months ago, and by my calculation, we have about another 19 months to go. So it seems to be a good time to take stock of what the FCC has accomplished over that time and what the future holds...I won't belabor the big decisions that make the papers seemingly every day, like open Internet, mergers, community broadband, E-Rate and spectrum auctions. I'd rather focus on those actions that didn't get as much attention, but impact the everyday lives of Americans. Decisions like getting the major wireless companies to agree to unlock their cellphones; requiring those same companies to certify annually that their networks can withstand the damage done by natural disasters; requiring that all wireless carriers enable text to 911 and provide bettter location accuracy in an emergency; requiring cable operators and broadcasters to improve their closed captioning; eliminating the sports blackout rule; simplifying our consumer complaint system; and last, butnot least, using the power of our enforcement authority to ensure, among other things, that consumers' privacy and data are protected and that netowkr operatros who engage in fraudulent billing practices are called to account. So what should you all expect in the second 19 months? There are numerous decisions in the pipeline, but I want to highlight five:

  1. Lifeline Modernization
  2. Over-the-Top Video: Making any providers that make linear streams of programming available for purchase, including over-the-top video services, multichannel video programming distrubtors (MVPDs).
  3. Tech Transitions: From his very first days in office, Chairman Wheeler has emphasized that the values underlying our communications system must be preserved as that system transitions to all Internet Protocol.
  4. Incentive Auction
  5. FCC.Gov 2.0: While fixing the FCC's website and our 18 year old Electronic Comment Filing System won't bring fast, fair and open broadband to American households, it will go a long way to makingthe agency more open, transparent and responsive.

Remarks of FCC Commissioner Clyburn at DC Chapter of the National Association of Women Business Owners

I am honored than an association of women entrepreneurs invited me to take part in this year's banquet, because before I became a utility regulator, I ran a small weekly newspaper in Charleston (SC). Like many of you, I know what it is to be underestimated, under-appreciated and misunderstood. When I was appointed Acting Chair of the Federal Communications Commission, many concluded that I would be a mere bench warmer, accepting the title and the perks, but hanging out until the permanent appointee assumed the post. But like many of you, being underestimated, under-appreciated and misunderstood just causes me to shift into this highly motivated, hyper-driven state -- where I do as much as i can for as long as I am able. We ended up being widely praised during those months when we managed the agency, because what was key among my initiatives, were our efforts to ensure that the government, our agency, will go the extra mile to make a difference, in the lives of men, women and children who are currently on the wrong side of the digital divide. My goal is to bride what is a widening affordability gap, because I know that leveraging the power of 21st century information, communications and technology will spur innovation and opportunities in all communities.

But if there is one thought that was emphasized repeatedly today...is that women entrepreneurs are making a difference in a world that still does not fully understand the value of our products or our presence. But what is most important, is that we do...Your future customers, your future business partners, the inventors of the next great business idea -- include women on both sides of the digital divide. I urge you, as you think about the policy issues that impact your business, to pay attention to what happens at agencies like the FCC. We are involved in issues that have a real impact.

Where There is “Competition, Competition, Competition,” the Need for Cable Rate Regulation is Diminished

In the Cable Television Consumer Protection and Competition Act of 1992, Congress instructed that where “Effective Competition” existed among pay-TV providers, such competition was preferable to using local rate regulation to protect consumers. Congress determined that Effective Competition existed in communities where there are more than one pay-tv provider in the market serving more than 15 percent of the community. In the more than twenty years since Congress’s 1992 instructions, competition in the video marketplace has increased dramatically.

Direct broadcast satellite (DBS) providers, like DIRECTV and DISH Network, now have a ubiquitous nationwide presence providing competition in virtually all markets. This is in addition to the competition increasingly being provided by other pay –TV providers. It should, therefore, come as no surprise that the Commission found, in almost all cases, that Effective Competition did exist and that most cable operators who petitioned the FCC met the statutory test. Where there is “Competition, Competition, Competition,” the need for basic service tier rate regulation is diminished. This is our presumption: competition results in lower prices for consumers. However, any local franchising authority is free to come to the FCC and rebut this new presumption for its service area, and, where successful, regulate basic tier cable rates. In addition, nothing in this Order affects other franchising authority responsibilities including the collection of franchise fees, provisions relating to PEG channels and I-Nets, and the creation and enforcement of customer service standards.

FCC’s Clyburn Explains ‘Effective Competition’ Dissent

In the STELA Reauthorization Act of 2014, Congress issued a clear mandate to provide administrative relief for small cable operators. Today, while I approve steps to reduce burdens on smaller providers, I cannot support the broader relief proposed because it is not in line with Congress’s intent, it may harm consumers with increased prices and it unnecessarily burdens local franchising authorities. Currently, cable providers must overcome a presumption that local franchise areas lack effective competition. However, rather than tailoring the relief to reduce the burden on smaller providers as Congress directed us to do, the Report and Order completely flips the presumption for all cable providers and the justification for this shift is STELA. Based on the plain reading of the statute, however, such broad relief goes beyond what is necessary to effectuate Congress’ intent. Moreover, the record raises significant questions as to the possibility of unintended consequences based on the solution proposed here (i.e. that a universal presumption of effective competition could lead to an increase in cable rates). I cannot support relief to larger providers particularly when doing so could harm consumers and unnecessarily increases the burdens on our local franchising authorities.

FCC’s Rosenworcel: ‘Effective Competition’ Decision Goes Beyond Congressional Mandate

The title of the Satellite Television Extension and Localism Act Reauthorization Act of 2014 may be complicated, but the direction Congress provided in this legislation is clear. In Section 111 Congress charged the Commission with establishing “a streamlined process for filing . . . effective competition petition[s] for small cable operators[.]” To the extent that we do so here, this Order has my support. However, the Commission inexplicably races past this straightforward statutory directive and instead provides all cable operators—from the biggest to the smallest—with an expedited process to avoid oversight. This is contrary to what Congress asked us to do, at odds with the recommendation of the Commission’s own Intergovernmental Advisory Committee, and provides no clear benefit to consumers. Consequently, to the extent that the Commission acts beyond the direction of Congress in Section 111, I dissent.

Regulations Should Reflect the Marketplace to Which They Apply

A bedrock principle of good government is that regulations should reflect the marketplace to which they apply. Accordingly, throughout my tenure at the Commission, I’ve emphasized the importance of updating our rules to reflect the modern video marketplace. This Report and Order does precisely that. More than twenty years ago, the FCC adopted a presumption that cable operators were not subject to effective competition. This meant that local franchising authorities could regulate the rates charged by an incumbent cable operator for basic-tier service unless the operator overcame the presumption by demonstrating that it was in fact subject to effective competition. This approach made sense in 1993. Over the past two decades, however, the industry has changed dramatically. New entrants have made major competitive splashes into the MVPD market. Given this profound transformation, we can’t keep living in the past. I therefore support our decision to adopt a presumption that there is effective competition among competing providers. This presumption far more accurately reflects the current state of the video marketplace than did its predecessor. I hope in the months to come we will continue to modernize our media rules. Whether we are regulating MVPDs, broadcasters, or other media entities like newspapers, our rules should reflect the competitive and technological conditions of today, not those of twenty or forty years ago.

FCC’s O’Rielly: Presumption of Competing Provider Effective Competition is an Idea Whose Time Has Come

I am pleased to approve this Report and Order streamlining the effective competition process to reflect current realities in the video marketplace. With a track record of 99.5% of the communities the Commission has evaluated having been found to have effective competition since the start of 2013, adopting a rebuttable presumption of Competing Provider Effective Competition is an idea whose time has come. At the same time, I do not believe that this item and the reasoning articulated within will impact the continued existence of the basic service tier. It is certainly not my intent to do so in this item and those reading the statute in such an extended way seem misguided. That is not to say it is not a logical consideration for Congress to explore and assess given the changing video marketplace.

WMC Divided 2015: The Media Gender Gap

The Women's Media Center (WMC) released its yearly report on the status of women in US media 2015. The report is based on new and original research that finds the media landscape is still dominated by male voices and male perspectives. “Inequality defines our media," said Julie Burton, President of the Women’s Media Center. “Our research shows that women, who are more than half of the population, write only a third of the stories. Media tells us our roles in society – it tells us who we are and what we can be. This new report tells us who matters and what is important to media – and it is not women.” WMC’s “Divided 2015: The Media Gender Gap” found that:

  • Overall, men generated 62.1 percent of news; women generated 37.3 percent.
  • In evening broadcast news, men were on camera 68 percent of the time. These include appearances by anchors as well as correspondents. Women were on-camera 32 percent of the time.
  • In print, men wrote 62 percent of all stories in 10 of the most widely circulated newspapers. Women wrote just 37 percent.
  • On the Internet, men wrote 58 percent of content at four online news sites. Women wrote 42 percent of the content.
  • On the wires, men wrote 62 percent of the content. Women wrote 38 percent.

Living Without Broadband In 2015: How 55 Million Americans Find Jobs, Study, Watch YouTube

For Americans who lack reliable broadband service at home, some of life’s most basic tasks -- paying bills, applying for jobs, taking tests and the like -- often require trips to a library or Internet café at all hours. New York City, the town with the world’s largest free public Wi-Fi plan, had people huddled in a Midtown Manhattan branch shortly before closing time on a recent Thursday to use the Internet. Some were there because their own computers were stolen or broken. For others, the library’s silent nooks are an escape between work and home. But for a good many, such as a 60-year-old Washington Heights resident Nicole Tanis, the library’s system is a necessity. She is one who does not pay for and cannot fathom affording broadband Internet at home on her income from Social Security and doing small tasks online. And in 2015, living without reliable access to the Web is, while not quite impossible, highly disadvantageous in myriad ways large and small.

Many companies’ hiring process now start with the Web, in some cases exclusively. “If you go to a gas station today and you ask for an application for a job, they’ll tell you to submit it online. You go to a Subway. Target. They’re all processing those applications online,” said Edyael Casaperalta, a research fellow at the Washington, DC-based nonprofit Public Knowledge. And some of the most accessible jobs for those who lack college or high school diplomas, such as telemarketing from home, require a broadband connection. As more and more aspects of life move online, the greater the risk that those on the wrong side of the digital divide will fall further behind. The feds are hoping to prevent that. A proposal from the Federal Communications Commission seeks to update the government’s 30-year-old aid program for telephone plans, called Lifeline, to include broadband Internet. The proposal calls for an expansion of the number of providers in the program and the inclusion of minimum standards for dependable, high-speed Internet access. “As communications technologies and markets evolve, the Lifeline program also has to evolve to remain relevant,” FCC Chairman Tom Wheeler wrote.

Anti-spying measures slipped into funding bill

House lawmakers slipped a number of anti-spying provisions into a funding bill that went through the chamber on June 3. Members of both parties included measures to rein in snooping from the Drug Enforcement Administration, National Security Agency and other agencies in the Commerce, Justice and Science (CJS) Appropriations Act. The action comes days after President Barack Obama signed into law legislation ending the NSA’s bulk collection of Americans’ phone records, and as surveillance critics eye new avenues for reform. Passage of the USA Freedom Act “was a long overdue step, but Americans’ right to privacy is still under attack,” said Rep Darrell Issa (R-CA).

One amendment from Rep Issa, which was adopted without opposition, would ban the use of “StingRay” devices without a court order. The tools, also known as “IMSI catchers,” replicate cellphone towers and scoop up information about people’s phone data and location. Local police have been known to use the devices, as have the FBI and US Marshals Service. In the process, the activity has stirred up controversy about the agencies’ ability to warrantlessly pick up innocent bystanders’ information. “For years, the federal government has worked with state and local law enforcement agencies to spy on American citizens using the secretive Stingray program,” Rep Issa said. Rep. Jared Polis (D-CO), meanwhile, added an amendment prohibiting the DEA from ever restarting a previously secret program collecting bulk records about people’s phone calls. The program -- which was revealed earlier in 2015 -- was halted in 2013. Two other amendments included in the bill would ban the government from forcing tech companies to place “back doors” to get around their security measures, and limit the NSA 's ability to weaken encryption security guidelines.