July 2015

NEWS FROM THE FCC MEETING

FCC REFORMS COMPETITIVE BIDDING RULES FOR SPECTRUM AUCTIONS
[SOURCE: Federal Communications Commission, AUTHOR: Press release]
The Federal Communications Commission adopted a report and Order that modernizes and reforms polices designed to facilitate small business' ability to participate in spectrum auctions and the wireless marketplace. These polices are commonly known as the Designated Entity Rules. With the action, the FCC is taking the following steps to provide small businesses -- including enterprises owned by women and minorities -- with a better on-ramp into the wireless industry, to increase the participation of rural service providers in future auctions and to eliminate outdated rules that no longer reflect the developments in today’s wireless marketplace:
Elimination of the attributable material relationship rule that limited the amount of spectrum a small business could lease in order to provide small businesses the flexibility to leverage leasing and other spectrum use agreements to gain access to capital and operational experience.
Adoption of a first ever 15 percent bidding credit for qualifying service providers that provide commercial communications services to a customer base of fewer than 250,000 combined wireless, wireline, broadband, and cable subscribers and serve predominantly rural areas.
Establishment of a first ever cap on the total amount of bidding credits that a small business or rural service provider can receive in any particular auction. The cap will vary on a service-by-service and auction-by-auction basis. For the Incentive Auction, the Report and Order adopts a cap of$150 million for small businesses and a $10 million ceiling on the overall amount that any entity -- either a small business or rural service provider -- can receive in smaller markets.
Modifications to the FCC’s attribution rules to guard against unjust enrichment.
Amendment of the competitive bidding rules to prohibit joint bidding and multiple applications by one party as well as parties with common controlling interests except in limited circumstances.
benton.org/headlines/fcc-reforms-competitive-bidding-rules-spectrum-auctions | Federal Communications Commission
Share: Twitter | Facebook
back to top

FCC ADOPTS PLAN TO MODERNIZE FIELD OPERATIONS
[SOURCE: Federal Communications Commission, AUTHOR: Press release]
The Federal Communications Commission adopted a plan to modernize the agency’s field operations within the Enforcement Bureau. The proposal will improve efficiency, better position the agency to do effective radio interference detection and resolution and meet other enforcement needs, and save millions of dollars annually after implementation is complete. The field reorganization plan adopted by the FCC aligns the field’s structure, operations, expenses, and equipment with the agency’s priorities such as radio frequency interference. It also prepares the field to address future enforcement needs in an ever more complex spectrum environment, and aligns field operations to support this mission. Through this plan, the FCC is maintaining a commitment to respond in a timely manner to interference issues anywhere in the nation, including responding to all public safety spectrum complaints within one day.
benton.org/headlines/fcc-adopts-plan-modernize-field-operations | Federal Communications Commission | read the Order | Commissioner Pai | Commissioner O'Rielly
Share: Twitter | Facebook
back to top

FCC ANNOUNCES TENTATIVE AGENDA FOR AUGUST OPEN MEETING
[SOURCE: Federal Communications Commission, AUTHOR: Press release]
Federal Communications Commission Chairman Tom Wheeler announced that the following items are tentatively on the agenda for the August Open Commission Meeting scheduled for Thursday, August 6, 2015:
Emerging Wireline Networks and Services: The FCC will consider a Report and Order, Order on Reconsideration, and Further Notice of Proposed Rulemaking that will advance longstanding competition and consumer protection policies on a technologically-neutral basis, and further the technology transitions underway in our Nation’s fixed communications networks
that offer the prospect of innovative and improved services to consumers and businesses alike.
Ensuring Continuity of 911 Communications: The FCC will consider a Report and Order that would protect consumers through the transitions from legacy copper networks to modern
networks by adopting rules to ensure that consumers have options, and sufficient information about those options, to maintain 911 communications at home during power outages.
Mobile Spectrum Holdings: The FCC will consider an Order on Reconsideration addressing petitions for reconsideration of certain aspects of the Mobile Spectrum Holdings
Report and Order.
Incentive Auction Procedures: The FCC will take the next step to commencing the incentive auction in the first quarter of 2016 by considering the Procedures Public Notice, which
adopts a balanced set of auction procedures that will ensure an effective, efficient, and timely auction. The Public Notice establishes and provides information on final procedures for setting
the initial spectrum clearing target, qualifying to bid, and bidding in the reverse and forward auctions.
Unlicensed Operations in TV Bands and 600 MHz Band: The FCC will consider a Report and Order that adopts technical and operational rules for unlicensed services, including wireless
microphone operations, in the broadcast television bands and in the post-incentive auction 600 MHz band. The rules are intended to maximize unlicensed access to spectrum while ensuring
that licensed services are protected from harmful interference.
Wireless Microphones: The FCC will consider a Report and Order that adopts a plan to accommodate the long-term needs of wireless microphone users by providing new opportunities for their use in the broadcast television bands and in several other frequency bands.
benton.org/headlines/fcc-announces-tentative-agenda-august-open-meeting | Federal Communications Commission
Share: Twitter | Facebook
back to top

SEIZING THE OPPORTUNITIES OF UNLICENSED SPECTRUM AND WIRELESS MICROPHONES
[SOURCE: Federal Communications Commission, AUTHOR: FCC Chairman Tom Wheeler]
In 2014, the Federal Communications Commission adopted an Incentive Auction Report & Order that proposes three channels for unlicensed use nationwide. While some have sought to define “nationwide” as synonymous as “uniform in every market,” that is most likely a physical impossibility that ignores how broadcast participation can vary in every market. I’m circulating two items for consideration, alongside the other Incentive Auction items, at August’s open meeting. The Part 15 Report and Order will assure unlicensed spectrum is available in every market. The Wireless Microphones Comprehensive Report & Order will address the long term needs of wireless microphone users. Our proposal would benefit consumers in the form of increased investment and innovation in unlicensed products and services. The proposal also helps those who rely on wireless microphones by altering operational parameters and expanding access to spectrum. The technical standards we are proposing for unlicensed operations would create certainty for unlicensed device users and manufacturers while reducing the risk of interference to licensed users. These items are important components of a suite of proposals that establish clear rules and protections for unlicensed devices as well as licensed wireless microphone devices in the Incentive Auction band as well as in other wireless bands where licensed wireless mics will gain additional access. These proposals join two other Incentive Auction-related items slated for consideration at August’s open meeting: a Public Notice establishing the bidding procedures for the Incentive Auction and the Reconsideration of the Mobile Spectrum Holdings Order. These items were originally scheduled for our July meeting, but were rescheduled for August 6.
benton.org/headlines/seizing-opportunities-unlicensed-spectrum-and-wireless-microphones | Federal Communications Commission
Share: Twitter | Facebook
back to top

SPECTRUM AUCTION QUESTIONS
[SOURCE: Multichannel News, AUTHOR: John Eggerton]
After a contentious Federal Communications Commission monthly meeting foreshortened when two controversial topics about the broadcast spectrum incentive auction were dropped from the agenda, FCC Chairman Tom Wheeler faced a news conference where, predictably, the major interest was in those two topics. "I feel comfortable that we will be able to issue a public notice [about the auction] in three weeks," Chairman Wheeler said, insisting that his August 6 target date will stick for a vote on auction procedures. "We are working toward a solution that will make sure that there is a majority vote," he said. "When we bring it up, that will happen." He offered no details about how he plans to assure that both Democratic commissioners vote with him. Although Chairman Wheeler sidestepped the question of whether he can tailor the "duplex gap" issue in a way that will convince Commissioner Jessica Rosenworcel to vote with him, Chairman Wheeler expounded on the data that explain solutions for spectrum repacking, which is believed to be at the core of Rosenworcel's dissatisfaction with the current plan. Several reports noted that Chairman Wheeler pulled the auction items because of Rosenworcel's reticence rather than because of congressional or NAB requests based on the release of limited repacking simulations.
benton.org/headlines/chairman-wheeler-addresses-spectrum-auction-questions | Multichannel News
Share: Twitter | Facebook
back to top

FCC POISED TO REJECT DISH PARTNERS' SPECTRUM DISCOUNTS
[SOURCE: Wall Street Journal, AUTHOR: Thomas Gryta, Shalini Ramachandran, Ryan Knutson]
Apparently, the Federal Communications Commission is poised to reject $3.3 billion in discounts requested by partners of satellite-TV provider Dish Network in the government’s $45 billion airwave auction earlier in 2014. After a review of $13.3 billion of winning bids by two small companies backed by Dish, FCC officials concluded that the two entities didn’t qualify for the small-business discounts. Apparently, FCC Chairman Tom Wheeler on July 15 circulated a draft order to the FCC’s other four commissioners. The auction, which lasted for more than two months, drew more than double the amount analysts expected. Dish’s entities were surprise second-place finishers with a total of $13.3 billion in winning bids. AT&T was the auction’s top bidder with $18.2 billion of licenses, and Verizon won $10.4 billion. Bidding is anonymous during the auction, but Dish and the two entities stayed in contact with one another because they disclosed the arrangement in advance. That meant there were instances where rivals saw three distinct bidders when in fact those were Dish and its partners working together. Dish has said it adhered to the rules and noted that its practices didn’t diverge from those employed by other companies in previous FCC auctions. For this auction, Dish had invested in two small companies, SNR Wireless and NorthStar Wireless, each of which applied for the FCC’s 25 percent discount for small businesses.
benton.org/headlines/fcc-poised-reject-dish-partners-spectrum-discounts | Wall Street Journal
Share: Twitter | Facebook
back to top

WIRELESS/SPECTRUM

A BITTER CLASH AT THE FCC IS GUMMING UP ONE OF THE MOST IMPORTANT ISSUES IN TECH RIGHT NOW
[SOURCE: Washington Post, AUTHOR: Brian Fung]
Bowing to pressure from Republican Representatives, Federal Communications Commission Chairman Tom Wheeler won't be holding a hotly anticipated vote on rules for a looming, high-stakes auction of wireless airwaves. TV industry advocates say the real reason the vote fell apart was because Chairman Wheeler couldn't find enough Democratic votes to move ahead, in an indication of how fragile the FCC's Democratic majority can sometimes be. The discord, according to those advocates, stems from fears that the draft auction rules could unintentionally lead to interference between mobile devices. The FCC's proposal would have considered relocating some TV station channels into this gap. Mainly, these stations would be the ones that decided not to give up their airwaves to cell service providers such as Verizon and AT&T. But some within the FCC, such as FCC Commissioner Jessica Rosenworcel, worried that plan would render some mobile technologies unusable, said Preston Padden, a former Disney executive who now leads a coalition of TV stations interested in selling their airwave rights. But because the FCC is not offering enough money to TV stations to entice them to sell, the FCC "is saying, 'Oh no, we're going to have to jam broadcasters in [the duplex gap] and that's what caused the fight," said Padden, whose coalition members would benefit from a higher auction price. (The auction works by having the government buy up the TV stations' airwave rights and then reselling them to cellular carriers.) Padden claimed that if the FCC offered 5 percent more money to broadcasters, more of them would agree to sell -- and fewer would need to be relocated. "They're being penny wise and pound foolish, and that's why they've got this problem," said Padden.
benton.org/headlines/bitter-clash-fcc-gumming-one-most-important-issues-tech-right-now | Washington Post
Share: Twitter | Facebook
back to top

LAWMAKERS AND BROADCASTERS TO FCC: AVOID PUTTING TV STATIONS IN DUPLEX GAP
[SOURCE: Katy on the Hill, AUTHOR: Kathryn Bachman]
In a letter to Federal Communications Commission Chairman Tom Wheeler on July 15, Sens Chuck Schumer (D-NY), Marco Rubio (R-FL) and Cory Booker (D-NJ) urged Chairman Wheeler to preserve the duplex gap for unlicensed and wireless mics. “A diverse coalition of broadcasters, tech companies, and consumer advocates have raised concerns that placing broadcasters in the duplex gap will complicate and inhibit live news reporting in major urban areas. Furthermore, the current proposal would deprive millions of Americans of the full benefit of next generation unlicensed technologies, including Wi Fi, enabled by making three channels available for unlicensed use on a national basis,” wrote the Senators. Disney, CBS, FOX and NBCUniversal, Univision, along with affiliate organizations jointly wrote to the FCC asking that the agency preserve reserved spectrum for use by wireless microphones that are critical to news gathering. “We are concerned that, as part of the incentive auction re-packing, the FCC may place TV stations in the portion of the duplex gap that the FCC previously reserved for use solely by wireless microphones. Although we understand that the FCC intends to minimize the number of markets in which this could happen, we remain concerned that the implications of this decision have not been fully explored, as well as with the level of uncertainty about which and how many markets will be impacted by this potential decision."
benton.org/headlines/lawmakers-and-broadcasters-fcc-avoid-putting-tv-stations-duplex-gap | Katy on the Hill
Share: Twitter | Facebook
back to top

INTERNET/BROADBAND

US ADDRESSES THE DIGITAL DIVIDE WHERE IT LIVES
[SOURCE: Benton Foundation, AUTHOR: Kevin Taglang]
[Commentary] The biggest news of the week was, of course, the historic accord reached by Iran and a group of six nations led by the United States to significantly limit Tehran’s nuclear ability for more than a decade in return for lifting international oil and financial sanctions. But there was big news in telecommunications, too, as President Barack Obama and U.S. Department of Housing and Urban Development (HUD) Secretary Julián Castro announced ConnectHome, an initiative to extend affordable broadband access to families living in HUD-assisted housing. Through ConnectHome, Internet service providers, non-profits and the private sector will offer broadband access, technical training, digital literacy programs, and devices for residents in assisted housing units in 28 communities across the nation. Appearing at a school in Durant, Oklahoma, in the heart of the Choctaw Nation, where 32 percent of children live in poverty, President Obama said it is unacceptable for young people not to have access to the same technological resources in their homes that their wealthier counterparts do. Among them could be “the next Mark Zuckerberg, the next Bill Gates,” he said. “If we don’t get these young people the access to what they need to achieve their potential, then it’s our loss; it’s not just their loss.”
https://www.benton.org/blog/us-addresses-digital-divide-where-it-lives
Share: Twitter | Facebook
back to top

REMARKS OF LAWRENCE STRICKLING REGARDING MULTISTAKEHOLDER PROCESS AT INTERNET GOVERNANCE FORUM USA
[SOURCE: National Telecommunications and Information Administration, AUTHOR: Lawrence Strickling]
I will use my time this morning to take stock of the multistakeholder process as a tool for addressing the key issues that exist in the Internet policy space and to reaffirm our strong support for the model in the work we do. In the next several weeks, National Telecommunications and Information Administration will be kicking off two new multistakeholder processes. The first will tackle issues related to privacy, transparency and accountability regarding unmanned aircraft systems (UAS). Our first meeting is scheduled for August 3. The second new process will focus on cybersecurity vulnerability disclosures and will get underway in September. We will also be reconvening the facial recognition privacy multistakeholder process on July 28. In all three instances, we selected the topics after soliciting broad input from the community. I realize these multistakeholder processes collide with the culture of Washington. It is more comfortable for companies to hire a team of lobbyists to work the regulatory agencies, lobby the Hill, and hire litigation specialists to represent their interests. It is how things have been done in this town for decades. But we’re talking about the Internet here. The Internet has disrupted many entrenched industries from newspapers to travel to taxicabs. Perhaps it’s time for some Internet thinking by businesses to disrupt how business is done in Washington. Imagine what could be accomplished with the brightest technologists, policy makers and academics who come together in good faith to debate and reach consensus on the solutions for our most important policy challenges in the Internet age. That’s the promise of the multistakeholder model.
benton.org/headlines/remarks-lawrence-strickling-regarding-multistakeholder-process-internet-governance-forum | National Telecommunications and Information Administration
Share: Twitter | Facebook
back to top

LIFELINE PREVENTS DIRE CHOICES
[SOURCE: Wall Street Journal, AUTHOR: Jessica González]
[Commentary] The Wall Street Journal’s July 11 editorial “Who Needs an ObamaPhone?” wrongly suggests that Lifeline, which provides a modest subsidy to families struggling to afford basic communications services, may be unnecessary. Subsidy or not, it is clearly reasonable for poor families to prioritize access to communications so that they may call 911 in an emergency, communicate with employers, contact a child’s school or interact with health-care professionals. For many, paying a phone bill means other needs will go unmet. In millions of American homes, Lifeline allows families to avoid the tough choice between staying connected or keeping roofs above heads, food on plates and clothes on backs. The Economic Policy Institute estimates a family of three (two parents, one child) in Hickman County, Tenn., in Rep. Marsha Blackburn’s district, needs to earn $48,000 a year to cover housing, food, child care, transportation, health care, taxes and other necessities—and attain “a secure yet modest” standard of living. However, a family living at 135% of the federal poverty guideline, and therefore eligible for Lifeline, earns about $27,000 per year—almost half of what it actually needs to cover critical expenses. It’s no wonder that 320,000 families in Tennessee utilize Lifeline. For some families, this difficult balancing act can ultimately prove unsustainable without help. Nearly 44% of smartphone users making less than $30,000 a year reported having to cancel or suspend service due to the financial burden.
[González is Executive Vice President and General Counsel at the National Hispanic Media Coalition]
benton.org/headlines/poor-lifeline-prevents-dire-choices | Wall Street Journal
Share: Twitter | Facebook
back to top

CYBERSECURITY

THERE'S A PLAN TO IMMEDIATELY PURGE SOME GOVERNMENTWIDE NETWORK SURVEILLANCE DATA
[SOURCE: nextgov, AUTHOR: Aliya Sternstein]
After a series of stinging government hacks, the Department of Homeland Security said scans of incoming Internet traffic from the public would be amped up. It has been unclear how this monitoring might affect the privacy of citizens and employees. Now, a little-noticed National Archives and Records Administration assessment offers some insight: Any surveillance data collected that does not trigger alarms will be erased pronto, according to a pending records disposal plan. DHS’ National Cybersecurity Protection System, better known as EINSTEIN, collects streams of traffic containing, among other things, e-mails and Web-surfing habits, to flag patterns indicative of known malicious attacks. On June 9, NARA tentatively green-lighted a DHS request to "destroy or delete immediately" information "inadvertently collected or captured by any or all NCPS capabilities that are determined not to be related to known or suspected cyberthreats or vulnerabilities." Such data typically includes anything from authorized online banking sessions to, some federal employees suspect, porn-site visits. "It’s likely they are bulk-collecting data and to avoid any accusations of monitoring things they aren't chartered to monitor, they must purge the data," said Jason Lewis, chief collections and intelligence officer at LookingGlass Cyber Solutions. EINSTEIN "casts a wide collection net, so they have to delete information they didn't intend to capture."
benton.org/headlines/theres-plan-immediately-purge-some-governmentwide-network-surveillance-data | nextgov
Share: Twitter | Facebook
back to top

CONTENT

PARENTS AND SOCIAL MEDIA
[SOURCE: Pew Internet, Science and Tech, AUTHOR: Maeve Duggan, Amanda Lenhart, Cliff Lampe, Nicole Ellison]
Social media networks have become vital channels for Americans’ daily interactions. Users rely on these platforms to keep in touch with family and friends, gather information and share what is important to them. This report explores how parents -- 75 percent of whom use social media -- turn to social media for parenting-related information and social support. Among the findings:
Mothers are heavily engaged on social media, both giving and receiving a high level of support via their networks. 81 percent of parents who use social media try to respond to good news others share in their networks, including 45 percent of social-media-using parents who “strongly agree” that they do so. Some 53 percent of mothers say they “strongly agree,” compared with 33 percent of fathers who say that.
Social media is broadly viewed as a source of useful information and as one parenting tool among a collection of options. Mothers use it as a parenting resource slightly more often than fathers.
Few parents say they have felt uncomfortable when information about their children is shared by other family members or caregivers on social media.
Parents, like non-parents, use a variety of social media platforms.
Parents are particularly active on Facebook and LinkedIn, while non-parents use Instagram more frequently.
benton.org/headlines/parents-and-social-media | Pew Internet
Share: Twitter | Facebook
back to top

TELEVISION

STREAMING LIKE CABLE
[SOURCE: Reuters, AUTHOR: Andrew Chung]
US District Judge George Wu in Los Angeles ruled that online television service FilmOn X should be treated like a traditional cable system in order to transmit the programs of the nation’s broadcasters over the Internet. The ruling, coming as consumer TV-watching habits are increasingly migrating to the Internet, is the first to first to view a streaming service like a cable provider and could have major implications for broadcasters if it is upheld by higher courts. Judge Wu ruled that FilmOn X is entitled to a compulsory license under the Copyright Act to retransmit the broadcasters’ programs if it meets the law’s requirements. Acknowledging the major commercial consequences of his decision, Judge Wu said he would allow an immediate appeal to the 9th U.S. Circuit Court of Appeals. He also left in place an injunction against FilmOn X’s operations that the broadcasters had won in 2012, so FilmOn will still not able to stream their content pending the appeal. John Bergmayer, Senior Staff Attorney at Public Knowledge, said, "If upheld, this decision could help bring more competition to the video marketplace. Similar services shouldn't be subject to totally different rules depending on whether they’re offered over coaxial cable, fiber, satellite transmissions, or online.”
benton.org/headlines/us-judge-says-internet-streaming-service-should-be-treated-cable | Reuters | Public Knowledge
Share: Twitter | Facebook
back to top

Benton

Search

Benton

Daily Digest

Analysis

July 2015

The FCC's vocal minority speaks out

Cybersecurity task force looks to next administration

Accelerating the Use of Prizes to Address Tough Challenges

A Note About Our Coverage Of Donald Trump's 'Campaign'

Huffington Post wrong to consign Trump to entertainment section

Why We All Need to Make the Internet Fun Again

How the FCC’s ban on prioritization puts patients at risk

July 17, 2015 (FCC Mtg News; US Addresses the Digital Divide)

US Addresses the Digital Divide Where it Lives

For the Poor, Lifeline Prevents Dire Choices