July 2015

Charter is 'naive' about DoJ concerns, analyst Greenfield says

Although most analysts expect federal regulators to approve Charter Communications' bid to simultaneously buy Time Warner Cable and Bright House Networks, BTIG Research analyst Richard Greenfield remains highly skeptical. In his latest blog post, Greenfield described Charter's public interest statement for the deal as "naive." In Charter's public interest statement, the company contends that cable companies operate in distinct regional markets, and that there is no national market for broadband. "The DoJ sees both video and broadband as national markets, with harms increasing with scale. The DoJ simply believes that bigger is badder," Greenfield wrote. He pointed to recent comments made by Nancy Rose, deputy attorney general for economic analysis for the Department of Justice, as bolstering his view.

"As you listen to the DoJ," the analyst adds, "it is very difficult to see how the government can approve the creation of a company nearly the size of Comcast (and given New Charter's growth, it could be larger than Comcast in a few years), particularly as it is far from clear what concessions would alleviate the government's underlying concerns without true competition materializing. … The DoJ believes there is fallacy in thinking about consolidation of cable as having no impact on competition just because they operate in geographically distinct markets with no overlapping customers."

Advancing Technology Transitions by Protecting Consumers, Competition and Public Safety in an IP-World

The transition to efficient, modern communications networks is bringing new and innovative services to consumers and businesses. The Federal Communications Commission’s approach to these technology transitions is simple: the shift to next-generation fiber and IP-based networks from analog switch- and copper-based networks is good and should be encouraged. But advances in technology will never justify abandonment of the core values that define the relationship between Americans and the networks they use to communicate. After an open, rigorous process, I will be circulating to my fellow Commissioners an item that would update the FCC’s rules to help deliver the promise of dynamic new networks, provide clear rules of the road for network operators, and preserve our core values, including protecting consumers and promoting competition and public safety.

Our new proposed rules would require providers of IP-based phone services to offer consumers the option to buy backup power. And I would stress the word option. It would be up to consumers to make the best choice for themselves. But to ensure that consumers understand their options, providers would be required to inform customers about service limitations from electricity outages and how to minimize those risks through backup power. We propose requiring that consumers be notified before the copper networks that serve their homes and businesses are retired. The item would require that replacement services be offered to competitive providers at rates, terms and conditions that are reasonably comparable to those of the legacy networks. This would be an interim solution pending the completion of a broader wholesale access proceeding. Bottom line: there has been competition for wholesale services before the technology transitions, and there will be competition in this market after these transitions. Again, we want to facilitate the transition to IP networks, which is why, consistent with longstanding policy, the proposed rules would NOT require FCC approval before carriers retire copper networks, as long as no service is discontinued, reduced or impaired.

OPM chief Katherine Archuleta resigns

Katherine Archuleta, the embattled director of the Office of Personnel Management, resigned July 10 in the wake of two massive hack attacks against her agency that compromised the data of more than 21 million Americans. White House spokesman Josh Earnest said Archuleta resigned "of her own volition." He said Archuleta realized that the technology challenges now facing OPM "require a manager with a special set of skills." President Barack Obama believes "it's quite clear that new leadership" with unique skills is "badly needed" at OPM, Earnest said. Earnest said Archuleta did some good things at OPM, including installing new security systems that enabled officials to detect one of two major hacks against the agency.

The resignation comes just one day after Archuleta announced that a hack of background investigation files stored by the agency had resulted in the theft of highly sensitive data from about 21.5 million Americans who applied for federal jobs that require a background clearance. That data included health records, fingerprints and Social Security numbers for both job applicants and their spouses and friends.

This is why the government keeps getting hacked

[Commentary] The Office of Personnel Managmenet breach exemplifies the cultural problem that besets the cybersecurity of the government and the private sector -- the failure to recognize that cybersecurity is a challenge that must be owned by the entire enterprise. Everyone -- CIO, CISO, CFO, COO, communications, human resources – must be part of plans and programs necessary for effective cybersecurity. It is a massive technology challenge that requires the best tools and talent. At the same time we are using the best available security tools, we must also address the culture issues that contribute to vulnerabilities or the technology cannot protect us. This culture reduces cybersecurity to “merely” a technical challenge.

No technologist can solve this problem -- everyone in an enterprise must own it. It is much harder to hold employees accountable when agencies invest so little time in training them. From inadequate annual refresher training to placing people in roles for which they have inadequate training, agencies are not providing their employees with they skills they need to do their parts. Given the potential harm that breaches can cause, more in-depth training, tailored to the employee’s role, is critical.

[Jeffrey Neal is the former personnel chief at the Department of Homeland Security and is now a senior vice president for ICF International]

Senators want FCC to investigate high Internet, cable prices

A group of senators including Sens Bernie Sanders (I-VT) and Elizabeth Warren (D-MA) are asking the Federal Communications Commission to look into pricing for Internet service around the country. "Many Americans have very few, if any, options when it comes to choosing their local cable and Internet providers. And, as the telecommunications industry becomes increasingly concentrated, this lack of choice has resulted in huge price increases and often poor service for consumers,” wrote Sens Sanders and Warren as well as Sens Al Franken (D-MN) and Ed Markey (D-MA). Specifically, they mentioned the proposed merger of Charter Communications and Time Warner Cable, which they said would “only increase concentration in the cable and broadband markets.”

The Senators asked FCC Chairman Tom Wheeler to provide them with information about the average cost of broadband by state and provider, as well as for urban and rural customers. “The Commission’s collection of pricing information is critical to upholding its mission to protect consumers, and promote competition, and deploy broadband across America,” they said.

Senate Passes Emergency Warning Update Bill

The Senate has passed the Integrated Public Alert and Warning System (IPAWS) Modernization Act of 2015 (S 1180). The bill would expand and update IPAWS, which can deliver alerts to multiple platforms (TV, radio, cell phones, computers, home phones and electronic billboards), boost training and increase collaboration. It was co-sponsored by Sens Ron Johnson (R-WI) and Claire McCaskill (D-MO).

Congress has long been working on improving emergency alerts via the broadcast and cable Emergency Alert System (EAS), Wireless Emergency Alerts (WEA) and FEMA's IPAWS system. There is also a House version of the bill. IPAWS allows emergency authorities to write their own messages, authenticates them and delivers them to the various platforms, including TV and radio stations and cable systems.

Weekly Digest

A Human Rights Debate Reaches the FCC

Does everyone have a fundamental right to access the Internet?

Over the past two weeks, a debate at least three years old has reached the Federal Communications Commission: Does everyone have a fundamental right to access the Internet? That is – Is Internet access a human right?

Race and the Media: How a New Generation of Activists Is Challenging the Narrative

[Commentary] When it comes to race, there are so many lessons our nation has either failed to remember or willfully ignored. Over the past year, police brutality has drawn national media coverage following the killings of unarmed Black men, women and children. And the subsequent protests have also grabbed the press’ attention. But activists of color are troubled that so much of the reporting has framed protesters as criminals and failed to address the larger issues of systemic racism, such as the over-policing of communities of color.

However, a new generation of racial justice leaders -- from Black Lives Matter organizers to immigration-rights activists  --  is using the Internet and social media to challenge traditional media’s stereotypical coverage of their communities. At the same time, they’re urging the media to pay greater attention to Black women, Latinos and Native Americans, who have also been victims of police brutality but whose stories often go untold. And perhaps unexpectedly they’ve played a key role in policy debates over the future of the open Internet, safeguarding the structures that will be critical to any effort to challenge and change the media narrative on race -- so we’re not repeating the same stories 50 years from now in the ongoing fight for racial justice.

[Joseph Torres is the senior external affairs director for the public interest group Free Press]

Broken cable reportedly disconnected US island territory from Internet

An undersea, fiber-optic cable that supplies Internet connectivity to the Commonwealth of the Northern Mariana Islands (CNMI) was reportedly cut more than 48 hours ago on July 7, taking tens of thousands of people offline. Access is being gradually restored to the US territory, located north of Guam in the western Pacific Ocean. IT&E, the primary telecommunications provider, said that "in the next 2 to 3 days, we’ll be able to provide a better timeline for the full restoration of services."

While IT&E attempts to fix the undersea cable, it has partially restored service by reviving an old microwave link. CNMI has a population of 53,833 according to 2010 Census data, primarily on the islands of Saipan, Rota and Tinian. CNMI has 14 islands in total. Saipan alone has a population of 48,220. IT&E said its crews had not identified the exact cause of the cable cut, "but indications are that this failure is a result of complications from the recent passing of Typhoon Chan-Hom, through the Marianas islands." While on-island communications were still possible, "all off-island communication is not possible." The cable also broke in 2008 when an underwater boulder rolled and snapped the cable.

Twenty years of the Commercial Internet

[Commentary] In August 1995, Netscape held its initial public offering and caught the attention of every participant in computing and communications. It was a catalytic event for the commercial Internet, and it started the beginning of a long boom in investment by private firms, households, entrepreneurs, and venture capitalists. With the 20th anniversary approaching, it’s time to look back on events and highlight the big lessons.

Looking back on these events with a wide lens, it is now possible to ask, why did the privatization of the Internet turn out so well? How could such an event unleash a wide and profound set of economic outcomes? The answer involves “innovation from the edges” -- multiple perspectives originating from multiple places in an industry with little or no concentrated decision making. Innovation from the edges played an important role in all the key events.