July 2015

FCC Poised to Reject Dish Partners’ Spectrum Discounts

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.

FCC Announces Tentative Agenda For August Open Meeting

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.

Seizing the Opportunities of Unlicensed Spectrum and Wireless Microphones

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.

FCC Seeks Nominations for Twelve Board Member Positions on the Universal Service Administrative Company Board of Directors

The Federal Communications Commission Wireline Competition Bureau seeks nominations for several board member positions on the Board of Directions of the Universal Service Administrative Company (USAC). The Bureau previously sought and received nominations for the six Board member positions that expired on December 31, 2013. Given that the Bureau received those nominations almost two years ago, we seek any new nominations for those six Board member positions in order to refresh the record. We also seek nominations for the six Board member positions that expired December 31, 2014. Nominations received prior to the release of this public notice do not need to be resubmitted and will be considered along with any new nominations received for certain board representatives. All nominations must be filed with the Office of the Secretary by August 17, 2015.

Remarks of Lawrence Strickling Regarding Multistakeholder Process at Internet Governance Forum USA

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.

Dozens of phone apps with 300 million downloads vulnerable to password cracking

Smartphone apps from Walmart, CNN, ESPN, and dozens of other organizations put user accounts at risk of compromise because they allow attackers to make an unlimited number of login attempts, according to recently published research. Security experts have long recognized the benefit of limiting the number of unsuccessful login attempts that users can make to online accounts. While such limits make it possible for attackers to lock out legitimate users, such denial-of-service drawbacks are generally outweighed by the protection they provide against online password cracking attempts, in which attackers make huge numbers of password guesses against specific user accounts in the hopes of trying the right one.

According to research from smartphone security firm AppBugs, dozens of Android and iPhone apps downloaded more than 300 million times contain no limits on the number of logins that can be attempted. Per the company's disclosure policy, researchers give app developers up to 90 days to fix vulnerabilities before making them public. That means most of the 50 or so apps identified by AppBugs still aren't being made public. Still, the grace period has expired on at least 12 apps, including those from CNN, ESPN, Slack, Expedia, Zillow, SoundCloud, Walmart, Songza, iHeartRadio, Domino’s Pizza, AutoCAD, and Kobo. Three other apps, from Wunderlist, Dictionary, and Pocket, were found to be vulnerable but were later fixed after AppBugs brought the weaknesses to the developers' attention.

There’s A Plan to Immediately Purge Some Governmentwide Network Surveillance Data

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."

Early morning, noon and late evening slots drive growth in local TV news

Even as digital becomes an increasingly essential part of Americans’ news diets, local TV continues to be one of the most-turned-to sources for news. In 2014, it even grew its average viewership. Local TV News Viewership in Nontraditional Time Slots Gains GroundA close examination of the broadcast schedule suggests one reason why. Faced with multiple years of audience declines during traditional time slots -- indeed, morning, early evening and late night news on local TV affiliates have lost on average 12 percent of their viewers since 2007 -- many local TV stations began expanding their programming to nontraditional hours such as very early morning, midday and at 7 p.m., according to a Pew Research Center analysis of Nielsen data. These additions are finding at least some new audiences willing to tune in.

The number of stations airing news at 4:30 a.m. was up 18 percent in 2014, to 320 (counting ABC, CBS, NBC and Fox affiliates as well as independent stations). Fully 357 stations had a 7 p.m. newscast in 2014, up 13 percent from the year before. And 328 stations aired local news at midday – an 11 percent increase from 2013. There were more than 800 news-producing local TV stations (commercial and English-language) in the US in 2014, according to consulting firm BIA Kelsey.

21st Century Fox Unloads Spanish-Language MundoFox

21st Century Fox’s Fox International Channels said it had sold its interest in US Spanish-language broadcast network MundoFox to its joint-venture partner RCN Television Group, ending an ambitious bid by the media company to gain broader entry to the Spanish-language television market, long dominated by Univision and NBCUniversal’s Telemundo.

MundoFox launched in the fall of 2012, burnishing what it touted as “teleseries,” or programming that emulates the action and drama of such well-known US shows as “24” or “Bones.” The idea at the time was to draw more interest from male viewers, who may not have been interested in the soapy telenovelas that are so much a part of the Univision and Telemundo schedules. Early series included “Kadabra,” an action-based serial that had proven popular in Spanish-language broadcasting, and “El Capo,” a drug-cartel drama known as one of Colombia’s most expensive. Many of the series were produced in Colombia, and the network also featured US TV shows with Spanish-language dubbing. The network has over 50 affiliates and serves the major US Hispanic metropolitan markets.

Hollywood stars shell out for Hillary

Hillary Clinton’s record-breaking fundraising haul comes in part from a strong effort by Hollywood stars, who have typically been a cash draw for Democrats over the years. The Democratic front-runner raised $47 million for the second fundraising quarter, more than any other candidate has ever raised during a three-month span. She tripled the haul of her closest competitor, Sen Bernie Sanders (I-VT), and continues to hold a strong lead in the polls.

Hollywood is no stranger to Democratic political fundraising. Several stars tried to come to the rescue ahead of the 2014 midterm elections, where Republicans clobbered Democrats on the way to taking back control of the Senate. Clinton has had strong support from celebrities in the past, especially during her 2008 bid. But now that she’s the clear front-runner, she has less competition for endorsements.