June 2015

Light at the end of the tunnel for patent reform, or an oncoming train?

[Commentary] After nearly three years of patent reform discussions, there appears to be some light at the end of the tunnel. On June 4, the Senate Judiciary Committee plans to mark up their Protecting American Talent and Entrepreneurship Act (PATENT) Act, which at present is a package of patent litigation reform measures aimed at making the business of frivolous litigation less attractive to those who like to game the system for financial gain. The bill, as initially presented, garnered a good deal of support from traditional reform supporters, including small businesses, hotels, banks, retailers and the tech industry. Even universities, who dislike the House's Innovation Act, have expressed tepid support for the PATENT Act. But what if that light is not the other side of the tunnel, but an oncoming train?

Last-minute negotiations have unlocked a Pandora's box of possible amendments or revisions to the bill, nearly all of which could diminish (or even extinguish) the enthusiasm of current supporters and endanger the bill's chances to move forward. And almost all of them are focused on changing procedures established just a few years ago in the last round of patent reform. The America Invents Act (AIA) was signed into law in September 2011. Included in the AIA was a section that created three new ways to challenge issued patents before the US Patent and Trademark Office's (USPTO) Patent Trial and Appeal Board, known as post-grant review, inter-partes review and the transitional covered business method review.

[Stoll is a partner and co-chair of the intellectual property group at Drinker Biddle & Reath and a former commissioner for patents at the United States Patent and Trademark Office]

A horrible new PayPal policy opts you into getting robocalls

PayPal, the payments company, is rolling out an update to its user agreement that threatens to bombard you with "autodialed or prerecorded calls and text messages" -- and worse, by agreeing to the updated terms, you're immediately opted in. PayPal can even reach you at phone numbers that you didn't provide. Through undisclosed means, PayPal says it has the right to contact you on numbers "we have otherwise obtained." The update takes effect July 1. But by then, federal regulators may well have approved new rules against robocalling that would put PayPal squarely in the agency's crosshairs.

Why would PayPal want to call or text you, anyway? The company's legalese says it needs to in order to tell you about account activity or to resolve disputes. But the terms also give PayPal permission to send you "surveys or questionnaires" and "offers and promotions." It's these types of telemarketing offers that have driven hundreds of thousands of public complaints to the FCC. In response, the agency's proposal -- which could take effect June 18 -- would allow phone carriers to employ robocalling blockers that automatically put a stop to autodialed calls. It would establish stricter definitions of autodialing so that companies can't wriggle out of honoring rules meant to thwart it.

Wearables device market grew 200 percent in first quarter, led by Fitbit

In the three months leading up to the April release of the Apple Watch, the wearables market continued to show strong growth. The worldwide wearable device market recorded its eighth consecutive quarter of steady growth in the first quarter in 2015, with vendors shipping a total of 11.4 million wearables, according to research firm IDC. That was a 200 percent increase from 3.8 million in the year-earlier quarter.

"Bucking the post-holiday decline normally associated with the first quarter is a strong sign for the wearables market," IDC research manager Ramon Llamas said. He said the growth demonstrated growing consumer interest and tech companies' ability to deliver compelling products and experiences. Demand from emerging markets is also on the rise. Now that the Apple Watch has hit store shelves, IDC is predicting that the wearables landscape will shift significantly. "The Apple Watch will likely become the device that other wearables will be measured against, fairly or not," Llamas said. "This will force the competition to up their game in order to stay on the leading edge of the market."

Global Fixed Broadband Line Forecast: 1 Billion by 2021

The worldwide total of fixed broadband lines will exceed 1 billion and reach 1.02 billion by year-end 2021, according to a new forecast from Point Topic. Fixed broadband line growth potential is greatest across the South and East Asia regions despite the number of fixed broadband lines in these regions being twice that that for Western Europe, the next largest region in terms of fixed broadband lines, according to Point Topic’s Global Broadband Statistics service. North America’s strongest broadband growth is behind it, according to the researchers. Although the number of North American lines grew from about 40 million in 2004 to about 110 million as of the end of 2014, the researchers forecast that number to reach only about 120 million by 2020. The market research provider uses the Gompetz Curve and inputs including forecasts of broadband subscriber numbers, population forecasts and estimates of the number of people per household in producing its country fixed broadband line forecasts.

Yahoo Will Stream the NFL’s First Web Game, for Free

A couple of months ago, when the NFL announced that for the first time ever, it would show a regular season game (almost) exclusively on the Internet, it didn’t know who would handle the streaming or how much it would cost fans to watch the game. Now it does: Yahoo will host the livestream of the Oct 25 Jacksonville Jaguars-Buffalo Bills game, and it’ll be free to viewers around the world.

The move is at least symbolically significant for the NFL, which wants to start experimenting with digital distribution. Likewise for Yahoo, which has become very interested in Web video under CEO Marissa Mayer but has yet to generate much buzz for its efforts. Industry executives familiar with the NFL’s negotiations think Yahoo paid at least $20 million for the rights to stream the game; in return it has exclusive ad rights for the game. The league bid out the streaming rights and at least one other tech company made a very competitive offer, sources say. It will be interesting to see how much those ads can generate for Yahoo: On the one hand, the novelty of the Web stream will generate lots of attention from media types. On the other hand, the game will take place in London on a Sunday afternoon, which means it will air at 9:30 in the morning on the East Coast and 6:30 am on the West Coast. And since it features two small/tiny-market teams, its aggregate US audience may be miniscule. But! If you had a third hand, you could also factor in the appeal of a free NFL game for curious audiences in Europe, where it will air in the afternoon.

Vimeo Launches Subscription Video Feature

Just as YouTube seems poised to launch a subscription video business, competitor Vimeo has unveiled new tools that allow creators to charge for recurring content. IAC-owned Vimeo announced subscription features for its Video On Demand platform. Creators who use the ad-free service will now be able to charge a monthly fee for unlimited viewing.

"Like our transactional launch just over two years ago, the subscription launch is starting with an open set of tools for creators, who will now be able to offer a recurring monthly subscription option," CEO Kerry Trainor said. "This is just the first phase for us." Creators will be able to set their own subscription pricing, tailor their offerings by location, and offer free trials, bonus material or other perks. Vimeo has also updated its stats dashboard to aggregate subscriber data. Under the new subscription offering, Vimeo will continue to give creators a 90 percent cut of all revenue they generate.

He was certain technology would save the world. Here’s what changed his mind.

For a long time Kentaro Toyama was a believer in technological utopianism. He studied physics at Harvard and earned a PhD in computer science at Yale. Toyama went on to do research at Microsoft. The work was demanding, but something was missing. “At the end of the day, I was helping to make better gadgets for wealthy people who could afford to play video games,” Toyama told me. In 2004, when his boss asked if he was interested in opening a research center in India, Toyama accepted on the spot. He’d never even been to India. But he was hungry to make more of a direct contribution to society.

Here was the chance to sprinkle tech fairy dust on a developing nation and watch success after success. Except it didn’t play out like that. Toyama spent five years in India with a team of about 10 and hatched about 50 projects. He found the projects that had a real social impact were ones in which he worked with capable organizations that were committed to their mission. Good schools with strong administrators were places where successes happened. But if he was working with an incapable nonprofit or corrupt organization, it didn’t matter how good his technology was. He sees attempts by Google and Facebook to spread Internet access around world as misguided. Giving the Internet to someone who doesn’t have vaccinations or clean water isn’t going to make them wealthier.

If you use Facebook to get your news, please -- for the love of democracy -- read this first

Facebook’s 1.44 billion users rely on the site for lots of things: keeping in touch, sharing photos, casual stalking. But if you get your political news through Facebook, as more than 60 percent of millennials do, please browse with extreme caution: The site doesn’t show you everything, and may subtly skew your point of view. This is not, of course, a new fear; moral panic over “echo chambers” and “filter bubbles” is as old as the social Web, itself. But a new survey by the Pew Center suggests there may be some new urgency here. Per that survey, a majority of American Internet users now get political news from Facebook -- and the 2016 elections, as we know, are in just over a year. That’s really important, and important to understand, because Facebook is quite unlike traditional conduits of news. (Think: your local ABC affiliate, your gossipy neighbor, this page, what have you.)

As in those more traditional settings, Facebook gives you a great deal of control over which sources you follow and what you choose to read. But unlike those other, traditional sources, Facebook also hides many stories selectively. According to a recent Washington Post experiment, as much as 72 percent of the new material your friends and subscribed pages post never actually shows up in your News Feed.

Cubans Take Journalism Classes Led By US Professors Despite Risk Of Arrest

About 30 Cubans sit in a conference room for several hours each week and learn the ABCs of journalism: how to craft a news story, write a headline and check sources. To their government, however, they are taking part in criminal activity. It's not just that they are studying journalism in a country where the mass media is controlled by the state, but how and where they are doing it: inside the US Interests Section, the heavily guarded outpost of a government that has spent decades trying to undermine Cuba's communist government. Cubans take the courses in independent journalism, led by US professors via video link, knowing full well that they risk harassment or even arrest. "These courses are a very good opportunity for us, for those who don't have any resources, who don't have work, and I don't think there is anything wrong with that," said Eleyn Ponjuan, a 19-year-old attending the once-a-week sessions.

The journalism program, which is taught for free along with more popular but less controversial classes in English and information technology, has come under renewed criticism in Cuba amid talks to restore full diplomatic relations between Washington and Havana for the first time in more than 50 years. Cuban and US officials say they are close to being able to re-establish embassies. The negotiations are closed, but President Raul Castro singled out the educational courses when asked on May 12 about remaining obstacles to better relations. "What most concerns me is that they continue doing illegal things," Castro told reporters about activities inside the US Interests Section. "For example, graduating independent journalists."

June 3, 2015 (USA Freedom Act Signed)

BENTON'S COMMUNICATIONS-RELATED HEADLINES for WEDNESDAY, JUNE 3, 2015

FirstNet Board and FCC Reform on today’s agenda: https://www.benton.org/calendar/2015-06-03


PRIVACY/SECURITY
   President Obama signs NSA bill, renewing Patriot Act powers
   Senate Passes Major NSA Reform Bill
   Rep Hoyer warns NSA bill could sink [links to web]
   Sen McConnell might not be bluffing on the NSA [links to web]
   Everyone's heard of the Patriot Act. Here's what it actually does. - Vox analysis [links to web]
   FBI behind mysterious surveillance aircraft over US cities
   A CareerBuilder For Spies: Why The NSA Is Building A New Job Listings Site [links to web]

DIGITAL DIVIDE
   Hearing Recap: Lifeline: Improving Accountability and Effectiveness
   Federal Funding Fosters Senior Digital Learning - op-ed

INTERNET/BROADBAND
   Broadband:Intended Outcomes and Effectiveness of Efforts to Address Adoption Barriers Are Unclear - research
   House Bill Blocks Internet Naming Oversight Handoff
   Google’s plan to spread the Internet with massive balloons is coming to America [links to web]
   Consolidated Electric Cooperative Offers Gigabit to Schools - press release [links to web]
   AT&T is prepared to abide by the new net neutrality rules under the DirecTV deal [links to web]

TELEVISION
   Nielsen Pushes Back Ratings Stabilization Plans Until 2016 [links to web]
   CPB analysis shows bright spots for public television [links to web]

WIRELESS/SPECTRUM
   Malone: Charter Could Create 3rd Wireless Player [links to web]
   How A New Wi-Fi Standard Could Reshape The Future Of Gadgets - Fast Company op-ed [links to web]

CONTENT
   YouTube trains its sights on traditional TV: 'It's a no-growth business' [links to web]
   Instagram to Open Its Photo Feed to Ads [links to web]

OWNERSHIP
   Huffington Post in Limbo at Verizon
   Understanding the economics of cable mergers - AEI op-ed [links to web]

TELECOMMUNICATIONS
   Putting the kibosh on robocalls is easier said than done - analysis

CONTENT
   The Supreme Court just made the Web even more hostile for women [links to web]
   AOL Debuts Makeover That's All About Mobile Video and Social-Friendly Content [links to web]

PRIVACY
   Internet privacy lawsuits, once all the rage, fizzle out [links to web]

HEALTH
   Study: Nearly third of teens changed health habits based on online search [links to web]
   CMS Opens Data up to Businesses in Bid to Spur Innovation [links to web]
   The FCC versus your health - AEI op-ed [links to web]

GOVERNMENT & COMMUNICATIONS
   CBO Scores the Integrated Public Alert and Warning System Modernization Act of 2015 - CBO research [links to web]
   House Spending Bills Leave Digital Service Funding High and Dry, So Far [links to web]
   Why Steve Jobs’s Influence Is Reverberating Through Government - Nextgov analysis [links to web]
   WikiLeaks Puts $100,000 Bounty on TPP [links to web]

FCC REFORM
   House Hearing Slated On FCC Office Closures
   Formerly Bipartisan FCC Reform Bill Lacks Democratic Representatives

RESEARCH
   Smartphones poised for revolution in media access
    See also: Consumer spending on Internet access and digital entertainment continues to rise [links to web]
   Number of Women Directing Indie Films Far Outweighs Those Working on Studio Projects [links to web]
   Customer Satisfaction With TV, Internet and Phone Service at 7-Year Low, Study Finds

COMPANY NEWS
   AT&T’s Ralph de la Vega: Subsidized Phones Are Going Away [links to web]
   Microsoft working on new service to provide Wi-Fi for users everywhere [links to web]
   Facebook introduces new encryption features [links to web]

STORIES FROM ABROAD
   Judge Allows Irish Media to Report Lawmaker Remarks on Newspaper Owner
   App Maker Files EU Complaint Against Google, Alleging Abuse of Android Dominance [links to web]
   China's smartphone market is almost saturated -- so what happens next? -LA Times analysis [links to web]

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PRIVACY/SECURITY

PRESIDENT SIGNS USA FREEDOM ACT
[SOURCE: The Hill, AUTHOR: Julian Hattem]
President Barack Obama signed legislation into law on June 2 reinstating key counterterrorism laws and reforming the government’s surveillance powers. The announcement from the White House that President Obama had signed the USA Freedom Act came a few hours after the legislation sailed through the Senate 67-32, following a protracted debate that lasted for weeks and forced some of the provisions to expire for nearly two days. With Obama’s signature, three parts of the Patriot Act — including the controversial Section 215 — came back into force after expiring June 1. The bill also enacts the most sweeping surveillance reforms in a generation, for the first time in years putting new restrictions on federal intelligence powers. The USA Freedom Act ends the National Security Agency’s bulk collection of Americans’ telephone records, limits other ways the government collects large amounts of records and adds new transparency measures to the way the government collects information. The Senate’s overwhelming passage of the bill comes after a weeks-long standoff following the House’s approval by 338-88.
benton.org/headlines/president-obama-signs-nsa-bill-renewing-patriot-act-powers | Hill, The
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SENATE PASSES MAJOR NSA REFORM BILL
[SOURCE: National Journal, AUTHOR: Dustin Volz, Sarah Mimms, Lauren Fox]
After weeks of tense standoffs marked by the lapse of parts of the Patriot Act, the Senate easily passed comprehensive surveillance reform, ending a chapter of high-stakes brinkmanship on Capitol Hill that eventually concluded with lawmakers taking their first significant step away from the post-9/11 national security policy that has come to define two presidencies. By an overwhelming margin, lawmakers approved 67-32 the House-passed USA Freedom Act, which would restore the three provisions of the Patriot Act that expired on June 1, but usher in a bevy of changes designed to better protect privacy and increase transparency of the government's surveillance operations. It will also transition toward an effective end to the National Security Agency's bulk collection of US call data. The measure will now be sent to President Barack Obama, who is expected to swiftly sign it into law. Senate Majority Leader Mitch McConnell (R-KY) failed in the end to convince his caucus to support him on a last-ditch effort to eke out even a small victory in a contentions, months-long battle over government spying that has left a bruise on his young tenure at the helm of the upper chamber. The Senate earlier rejected a host of amendments offered by Majority Leader McConnell that were intended to weaken the legislation. Most notably, the bill would end the NSA's once-secret interpretation of Section 215 of the Patriot Act to justify its bulk collection of US call metadata, the first and most controversial of the programs exposed by NSA-whistleblower Edward Snowden. In lieu of that mass-surveillance regime, the Freedom Act calls for a transition within 6 months to a system where phone companies provide records to government spies on an as-needed, more-targeted basis after judicial approval is obtained from the Foreign Intelligence Surveillance Court.
benton.org/headlines/senate-passes-major-nsa-reform-bill | National Journal | The Verge | ars technica | nextgov | The Hill | Broadcasting & Cable | Broadcasting & Cable
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BILL TO LIMIT SURVEILLANCE POWERS CLEARS SENATE HURDLE
[SOURCE: Washington Post, AUTHOR: Mike DeBonis, Ellen Nakashima]
The Senate advanced a sweeping remake of US surveillance powers, two days after an internal split among Republicans caused the legal authority for key counterterrorism programs to temporarily expire. By a vote of 83 to 14, the measure cleared a crucial procedural hurdle, as Senators acted to close debate on the USA Freedom Act, a House-passed bill that would end the National Security Agency’s practice of collecting troves of call data from telephone companies. It would instead mandate a six-month transition to a system in which the data would remain in private hands but could be searched on a case-by-case basis under a court order. June 2nd’s cloture vote sets up the consideration of several amendments, with final passage expected later in the day. Depending on the amendment votes and procedural maneuvers, the bill could be signed into law as soon as the night of June 2nd. Regarding Sen Rand Paul (R-KY)'s objections to efforts to quickly pass either the House bill or short-term extensions of current law, Senate Majority Leader Mitch McConnell (R-KY) said, “This is the Senate, and members are entitled to different views, and members have tools to assert those views. It’s the nature of the body where we work. But what’s happened has happened, and we are where we are. Now is the time to put all that in the past and work together to diligently make some discrete and sensible improvements to the House bill.” But those “improvements” could further delay passage of the legislation. Any successful amendment would send the bill back to the House, where its fate would be uncertain.
benton.org/headlines/bill-limit-surveillance-powers-clears-senate-hurdle | Washington Post
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FBI BEHIND MYSTERIOUS SURVEILLANCE AIRCRAFT OVER US CITIES
[SOURCE: Associated Press, AUTHOR: Jack Gillum, Eileen Sullivan, Eric Tucker]
The FBI is operating a small air force with scores of low-flying planes across the country carrying video and, at times, cellphone surveillance technology -- all hidden behind fictitious companies that are fronts for the government. The planes' surveillance equipment is generally used without a judge's approval, and the FBI said the flights are used for specific, ongoing investigations. The FBI said it uses front companies to protect the safety of the pilots and aircraft. It also shields the identity of the aircraft so that suspects on the ground don't know they're being watched by the FBI. In a recent 30-day period, the agency flew above more than 30 cities in 11 states across the country. Aerial surveillance represents a changing frontier for law enforcement, providing what the government maintains is an important tool in criminal, terrorism or intelligence probes. But the program raises questions about whether there should be updated policies protecting civil liberties as new technologies pose intrusive opportunities for government spying. US law enforcement officials confirmed for the first time the wide-scale use of the aircraft, which the AP traced to at least 13 fake companies, such as FVX Research, KQM Aviation, NBR Aviation and PXW Services. Even basic aspects of the program are withheld from the public in censored versions of official reports from the Justice Department's inspector general. The FBI also has been careful not to reveal its surveillance flights in court documents. "The FBI's aviation program is not secret," spokesman Christopher Allen said in a statement. "Specific aircraft and their capabilities are protected for operational security purposes." Allen added that the FBI's planes "are not equipped, designed or used for bulk collection activities or mass surveillance." But the planes can capture video of unrelated criminal activity on the ground that could be handed over for prosecutions. Some of the aircraft can also be equipped with technology that can identify thousands of people below through the cellphones they carry, even if they're not making a call or in public. Officials said that practice, which mimics cell towers and gets phones to reveal basic subscriber information, is rare.
benton.org/headlines/fbi-behind-mysterious-surveillance-aircraft-over-us-cities | Associated Press | The Hill
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DIGITAL DIVIDE

HEARING RECAP
[SOURCE: Benton Foundation, AUTHOR: Kevin Taglang]
The Senate Commerce Committee’s Subcommittee on Communications, Technology, Innovation, and the Internet held a hearing to examine the Federal Communications Commission’s progress in reforming Lifeline, a government program that subsidizes monthly telephone services for eligible low-income participants, and how to prevent waste, fraud, and abuse in the program. Recently, the FCC revealed its intention to launch on June 18 a public proceeding to consider expanding the Lifeline program to include broadband. The update would also include accountability measures, including a new third party to determine who is eligible for the program. Currently, eligibility is determined by the phone service providers. Both sides of the aisle agreed the program needed modifying, with Democrats united in support of expanding it from phone service to broadband, but Republicans were less sure about the increased costs of such an expansion and preventing waste fraud and abuse. Republicans were looking for some more cost-containment—like a budget on the program—before expanding eligibility to broadband, while Democrats argued that the FCC could do both at the same time and had already made strides with targeted reforms meant to increase efficiency and prevent waste, fraud and abuse. [more at the URL below]
benton.org/headlines/hearing-recap-lifeline-improving-accountability-and-effectiveness | Benton Foundation | B&C | GAO
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FEDERAL FUNDING FOSTERS SENIOR DIGITAL LEARNING
[SOURCE: Benton Foundation, AUTHOR: Cecilia Garcia]
[Commentary] Concern about seniors being left behind in the digital divide is not a recent phenomenon. Some efforts date back to the mid-1990s. Others emerged when the federal government began to pay serious attention about a decade ago. The Obama Administration has made 21st century telecommunications technology a priority for all Americans. Faced with the Great Recession, the President Barack Obama signed the American Recovery and Reinvestment Act in February 2009. This economic stimulus package included funds to expand broadband infrastructure, increase the number of public computer centers and implement broadband adoption programs. ARRA funds created the Broadband Technology Opportunities Program (BTOP), administered by the Department of Commerce’s National Telecommunications & Information Administration (NTIA). In his January 14, 2015 announcement of Broadband USA’s plans to help with community broadband plans, NTIA Administrator Larry Strickland stated, “Our grantees also have established or upgraded 3,000 public computer centers, trained more than four million people and helped roughly 735,000 households sign up for broadband.” BTOP funding ended in December 2013. A small number of BTOP projects focused on seniors. Here are a few highlights.
[Cecilia Garcia, former Executive Director of the Benton Foundation, is a communications advisor with an extensive background in public affairs, television production and advocacy]
benton.org/headlines/federal-funding-fosters-senior-digital-learning | Benton Foundation
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INTERNET/BROADBAND

BROADBAND: INTENDED OUTCOMES AND EFFECTIVENESS OF EFFORTS TO ADDRESS ADOPTION BARRIERS ARE UNCLEAR
[SOURCE: Government Accountability Office, AUTHOR: Mark Goldstein]
While broadband is available to a majority of Americans, barriers have kept some from subscribing and enjoying its benefits. In 2010, the Federal Communications Commission published the National Broadband Plan, which noted that some demographic groups lagged behind others in adopting broadband and called on FCC and the National Telecommunications and Information Administration to take action to address these barriers. The Government Accountability Office was asked to examine progress in addressing broadband adoption barriers. This report examines (1) benefits of home broadband adoption, (2) barriers to adoption and approaches to address them, and (3) the extent to which FCC and NTIA have assessed efforts and set goals to address barriers. GAO reviewed literature on benefits and barriers, documentation on the performance of efforts to address adoption barriers, and interviewed FCC and NTIA officials, 14 of the 42 BTOP grantees, and 21 public and private stakeholders selected based on GAO's prior work and recommendations from other stakeholders. GAO recommends that NTIA include an outcome-based goal and measure for its broadband adoption work in its performance plan. NTIA stated that such metrics are not appropriate for its efforts because these efforts are advisory. GAO believes measuring outcomes is key to demonstrating results. GAO also recommends that FCC revise its strategic plan to more clearly state if broadband adoption is a priority, and if so, what outcomes FCC intends to achieve. FCC noted that to the extent its plan is unclear, it will take steps to address the recommendation.
benton.org/headlines/broadbandintended-outcomes-and-effectiveness-efforts-address-adoption-barriers-are-unclear | Government Accountability Office
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HOUSE BILL BLOCKS INTERNET NAMING OVERSIGHT HANDOFF
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
An appropriations bill is getting pushback from the Obama Administration and some in Congress for a provision that would block the National Telecommunications and Information Administration hand-off of oversight of Internet domain naming functions (the Internet Assigned Numbers Authority or IANA) to a multistakeholder model. The Republican-backed Commerce, Justice, Science, and Related Agencies Appropriations Act (HR 2578) drew immediate negative reviews from the Office of Management and Budget. "The Administration strongly objects to the provision that prevents the National Telecommunications and Information Administration from using funds to relinquish its responsibility with respect to internet domain name system functions, a commitment the US Government made more than a decade ago," OMB said. "The successful transition of these functions would facilitate a free and open Internet managed through a multi-stakeholder governance structure." House Communications Subcommittee Ranking Member Anna Eshoo (D-CA), who represents Silicon Valley, was none too pleased, either. "Since NTIA’s announcement, the multi-stakeholder community has stepped up to the plate to craft a transition proposal and enhanced accountability measures needed in the absence of US government stewardship," she said. " NTIA has articulated specific criteria for the transition proposal and made clear that any plan must advance our vision of a free and open Internet..." "HR 2578 includes language that blocks NTIA from using funds to relinquish the IANA functions. This limitation of funds is not only unnecessary, it sends the wrong message to the international community. Our diplomats point to the IANA transition announcement as a key factor helping us win allies and support for an Internet free of government control. As the US Chamber of Commerce stated, this funding restriction 'could result in harm to US businesses and Internet users as a whole.'” She said that while she opposes the provision, she supports insuring the transition is careful and transparent and pledges to work with her colleagues.
benton.org/headlines/house-bill-blocks-internet-naming-oversight-handoff | Broadcasting&Cable
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OWNERSHIP

HUFFPOST IN LIMBO
[SOURCE: New York Times, AUTHOR: Ravi Somaiya]
Over the last couple of years, an array of media companies, venture capitalists and wealthy individuals have quietly explored buying a stake in The Huffington Post. The most recent valuation, according to half a dozen people briefed on the matter: about $1 billion. Those interested have included the European media companies Le Monde and Axel Springer; the Napster founder Sean Parker; and the private equity firm General Atlantic, those people said, speaking on condition of anonymity. Some of the talks were navigated by AOL, The Huffington Post’s parent company, as it sought ways to raise money, others by the site’s well-connected founder, Arianna Huffington. But when the music stopped last month and Verizon’s $4.4 billion takeover of AOL was announced, The Huffington Post was still owned by AOL — creating an unlikely corporate home for one of the nation’s leading liberal news outlets. Verizon executives have said that the primary reason for the purchase was AOL’s advertising technology, so it is not completely clear what it might want with The Huffington Post, and how a relationship between them might work. It also is unclear whether the famously independent Ms. Huffington will be comfortable operating within Verizon. Her contract expired this year, and she has yet to sign a new one, which raises the prospect of a Huffington Post without a Huffington.
benton.org/headlines/huffington-post-limbo-verizon | New York Times
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TELECOMMUNICATIONS

PUTTING THE KIBOSH ON ROBOCALLS IS EASIER SAID THAN DONE
[SOURCE: Los Angeles Times, AUTHOR: David Lazarus]
[Commentary] The Kingsbury Commitment settled an antitrust case brought by the federal government and paved the way for the modern phone system. "Because of Kingsbury, we were able to have more than one phone company," said Eric Burger, a computer science professor and director of Georgetown University's Center for Secure Communications. "That's a good thing," he said. "But also because of him, AT&T and Verizon are required by law to deliver any call that reaches their networks." That's one reason robocalls keep getting through. Another is that, thanks to technology that can trick caller ID systems, telemarketers and scammers keep finding sneaky ways to get past your defenses. Federal Communications Commission Chairman Tom Wheeler proposed new rules intended to cut down on the number of robocalls bothering people. A key change is to clear up any confusion over whether phone companies are allowed to block robocalls, just as Internet service providers try to block spam e-mail. "We are giving the green light for robocall-blocking technology," FCC Chairman Tom Wheeler said. "The FCC wants to make it clear: Telephone companies can -- and in fact should -- offer consumers robocall-blocking tools." Problem solved? Not hardly. It would take legislative or regulatory action to tweak the Kingsbury Commitment and allow carriers to block questionable calls from other phone companies, Burger said. Until then, a telemarketer or scammer anywhere in the world could use some fly-by-night phone company to gain access to the major networks.Then there's the even bigger problem of spoofing. This is a practice in which a caller ID system is tricked into thinking that a call is originating from somewhere else. And here's the catch: It's not illegal. So two cheers to the FCC for saying more needs to be done to put the kibosh on robocalls. But at this point, that's about all they're saying.
benton.org/headlines/putting-kibosh-robocalls-easier-said-done | Los Angeles Times
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FCC REFORM

HOUSE HEARING SLATED ON FCC OFFICE CLOSURES
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
The House Communications Subcommittee is scheduling a hearing for June 11 on Federal Communications Commission Chairman Tom Wheeler's proposal to close down two-thirds (16 of 24) of the FCC's field offices, billed as a way to cut costs and boost efficiency. That is according to House Communications Subcommittee Chairman Greg Walden (R-OR). Chairman Walden, himself a former broadcaster, pointed out that broadcasters had expressed concern about the move. Among those concerns are how that will affect the FCC's ability to monitor and respond to interference issues, particularly with the upcoming repack of TV stations after the broadcast incentive auction. Chairman Walden said that it was a "tussle" to get the information out of the FCC and that it was "proceeding down this path of closing most of their offices. We have heard from a number of affected organizations, including broadcasters and first responders, about the concerns they have regarding the centralization of the FCC and the lack of local access that will occur." He said he intends to have someone from the FCC testify as well as other stakeholders. Chairman Wheeler has said the closings would not adversely impact interference monitoring functions.
benton.org/headlines/house-hearing-slated-fcc-office-closures | Broadcasting&Cable
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FORMERLY BIPARTISAN FCC REFORM BILL LACKS DEMOCRATIC REPRESENTATIVES
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
The House Commerce Committee will take up a formerly bipartisan Federal Communications Commission process reform bill with Democratic Representatives no longer on board, according to House Communications Subcommittee Chairman Greg Walden (R-OR). He said he hoped Ranking Member Anna Eshoo (D-CA) would "rethink her position." According to Chairman Walden, she is planning to introduce her own version of the bill that includes three Democratic bills and a key change. One of Ranking Member Eshoo's primary problems with the bill is that it delays allowing more than two FCC commissioners to meet outside of public meetings until other reforms in the bill are already in place. Chairman Walden pointed out in a contentious Subcommittee markup on the reform bills that the delay had been part of the bill when it passed the House unanimously last Congress, and felt he had an agreement with Ranking Member Eshoo on the provision. But Democratic Representatives also have issues with Republican Representative amendments, including one that would require the FCC to make public decisions being made on delegated authority 48 hours before the actions were taken and one that would require it to publish drafts of proposed decisions before they are voted. Democratic Representatives have said that latter proposal stemmed from FCC Chairman Tom Wheeler's decision not to publish a draft of his Title II order, which House Republicans had pressed for. Chairman Walden says the proposed reform predates that. Chairman Walden has said those proposals would not be "burdensome" on the FCC. "We are moving forward on these bills," he said, but "have not been able to get support from our Democratic colleagues," which he said puts them in the box of supporting continued secrecy at the FCC."
benton.org/headlines/formerly-bipartisan-fcc-reform-bill-lacks-democratic-representatives | Broadcasting&Cable
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RESEARCH

SMARTPHONE REVOLUTION
[SOURCE: Financial Times, AUTHOR: Daniel Thomas, Shannon Bond]
Most of the world will be using a smartphone to watch videos and access news in five years’ time and almost two in three dollars set to be spent globally on internet services will be for mobile access not fixed line, says new research. More than two-thirds of the world’s population will be using smartphones by 2020, according to a report by Ericsson, the Swedish group. It estimates that smartphone subscriptions will double in the next five years to 6.1 billion fuelled by the rapid adoption of mobile internet in emerging markets. “This immense growth will make today’s big data revolution feel like the arrival of a floppy disk,” says Rima Qureshi, chief strategy officer at Ericsson. It points to “mass-scale transformation” of the mobile market owing to an increase in applications and falling costs of devices as the key factors driving connected devices. Overall worldwide mobile subscriptions are set to overtake the global population with a rise from 7.1 billion in 2014 to 9.2 billion by 2020. The growth will lead to new revenues for device makers and telecoms groups that adjust their businesses to provide services for the expansion of mobile, Ericsson said.
benton.org/headlines/smartphones-poised-revolution-media-access | Financial Times
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CUSTOMER SATISFACTION WITH CABLE/INTERNET SERVICE
[SOURCE: New York Times, AUTHOR: Rebecca Ruiz]
Americans have long expressed dissatisfaction with their cable and Internet service. In 2015, they seem to have grown even more dissatisfied. The American Customer Satisfaction Index released the results of its latest study on customer satisfaction with cable TV, Internet and phone service providers, saying that the results declined to a seven-year low. Of the 43 industries on which the survey solicits opinions, TV and Internet companies tied for last place in customer satisfaction. Cable TV and Internet providers have faced particular scrutiny in a year filled with talk of mergers in the industry. “Internet and TV have always been among the lowest scoring,” said David VanAmburg, director of the Index. “But this year they’re at the very bottom.” The study, which is based on more than 14,000 consumer surveys, gives companies a rating from 0 to 100. For cable TV service, Comcast’s rating dropped by 10 percent over 2014, for a score of 54, the Index found. Time Warner dropped by 9 points, to a 51, tying Mediacom Communications for the lowest score among the more than 300 companies evaluated by the Index. For Internet service, Time Warner received a more favorable rating than 2014, earning a score of 58, compared with 56 for Comcast, 57 for Charter, 68 for Verizon FiOS and 69 for AT&T U-verse.
   Customer Satisfaction With TV, Internet and Phone Service at 7-Year Low, Study Finds

benton.org/headlines/customer-satisfaction-tv-internet-and-phone-service-7-year-low-study-finds | New York Times | ars technica | Multichannel News
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STORIES FROM ABROAD

MEDIA GETS OK TO REPORT ON IRISH BILLIONAIRE
[SOURCE: Wall Street Journal, AUTHOR: Alexis Flynn]
A battle over Irish press freedom pitting some of the country’s biggest media outlets against billionaire newspaper magnate Denis O’Brien came to a head after a judge upheld their right to report remarks made by a lawmaker in parliament. The case, which centers on whether the media can report allegations that O’Brien benefited unduly from a state-backed lender at a time when the country was struggling under a burden of austerity, also highlights the still-raw wounds left by the 2008 financial crisis that devastated Ireland’s banks and forced the country to seek emergency loans from international lenders. Judge Donald Binchy’s ruling defuses a row that had escalated in recent days, drawing the ire of opposition politicians who accused the businessman of provoking a constitutional crisis by attempting to stop the allegations being aired. It is also a setback for O’Brien, who in May obtained a gagging order to stop reporters from detailing his past financial dealings with the state-backed rump of a bailed-out Irish bank. O’Brien owns the island nation’s leading daily newspaper, The Irish Independent, among other national and regional titles. He denied any wrongdoing and asserted his right for his financial affairs to remain private.
benton.org/headlines/judge-allows-irish-media-report-lawmaker-remarks-newspaper-owner | Wall Street Journal
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