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  2. September 2015

September 2015

Connect America Fund Auction: At Least $1 Billion Up for Grabs

[Commentary] At least one billion dollars should be available to carriers interested in bidding in the upcoming Connect America Fund reverse auction, based on data provided by the Federal Communications Commission. Earlier in 2015 the FCC offered the nation’s largest price cap carriers nearly $1.7 billion annually for six years to bring broadband to parts of their local service territories currently lacking that service. Carriers accepted or declined funding on a state-by-state basis -- and while most carriers accepted most of what was offered, funding aimed at nearly 450,000 locations was declined and will instead be awarded based on a competitive bidding process.

Funding will go to the provider that offers to deploy broadband at the lowest level of support. The total amount of money to be auctioned – and possibly the total number of locations — may be higher than what is shown in Telecompetitor’s minimum funding analysis. The reason is that the FCC has signaled that it may move some money originally targeted for a mobility fund into the regular CAF program or into a remote areas fund. If money were moved into the regular CAF program, potentially the number of locations targeted would also be expanded, perhaps by shifting locations currently targeted for the remote areas program. That program calls for serving the highest-cost locations using broadband wireless or satellite broadband.

Let’s remind ourselves why the sharing economy is amazing

[Commentary] The sharing economy’s explosive growth should be considered an enormous win for techno-optimists everywhere – and a testament to the opportunities we can create for people when we re-evaluate outdated regulatory models. However, services like Uber and Airbnb have recently faced an onslaught of suspicion and contempt from politicians, the courts, and some of the very people these services benefit most. Let’s take a moment to remind ourselves of a few reasons why we should be celebrating the sharing economy – not condemning it:

  1. It’s helping middle-class families
  2. It’s putting millions of Americans to work, and contributing to a large portion of new jobs
  3. It fosters trust among everyday Americans
  4. It’s changing some unexpected industries – like agriculture
  5. It’s ushering in a new century of competition, connection, and choice

Coding Class, Then Naptime: Computer Science For The Kindergarten Set

Grant Hosford is co-founder of a company called codeSpark. Its game-like software, The Foos, teaches basic computer programming skills -- "the ABCs of coding"-- with no reading necessary. It's aimed at children as young as 5, and it has been downloaded 700,000 times so far in 150 countries.

The Foos is part of a trend toward increasing emphasis on code as a fundamental literacy. You may have heard about the Hour of Code nonprofit initiative, which claims tens of millions of student participants; or New York City Mayor Bill DeBlasio's recent announcement that he intends to require teaching computer science in all grades for all students. "A computer science education is literacy for the 21st century," the Mayor said at the announcement. A group of educators, researchers and entrepreneurs like Hosford is taking that analogy very seriously. They're arguing that the basic skills of coding, such as sequencing, pattern recognition and if/then conditional logic, should be introduced alongside or even before traditional reading, writing, and math.

How Senate Hopefuls Keep Donors Secret From Voters Until It’s Too Late

For nearly 15 years, voters have been able to click a mouse to view an up-to-date list of who’s contributed to candidates for the presidency and the US House, and how those funds have been spent. But the law still allows Senate candidates to file campaign reports on paper, making it nearly impossible to keep up with the flow of money. Efforts to fix that imbalance have died over and over again in the Senate, regardless of which party controlled the chamber. Whether the latest attempt succeeds before the 2016 election may rest on a political horse trade – one that would loosen the reins on another part of campaign spending.

Since December 2000, presidential and House candidates have had to file campaign reports electronically to the Federal Election Commission, meaning the public, journalists and analysts can see donors and recipients within minutes. The language in the 2000 law, though, didn’t cover Senate candidates. As a result the Senate uses a paper system that hasn’t changed much since 1972: Filings are mailed, faxed or delivered by hand to the Secretary of the Senate. The paperwork, which can involve thousands of pages in a big race, is then passed to the FEC, which pays to have the documents scanned and posted online. The information in the reports is typed into a computer so the data can be published for researchers and journalists. The whole process costs the FEC up to $500,000 a year, the Congressional Budget Office has said.

The ad blocking controversy, explained

[Commentary] The Internet is suddenly awash in commentary about ad blocking and ad blockers. The dispute is about software. Specifically about "extensions" that can be added to (some) web browsers and about JavaScript that runs as part of (some) web ads.

It's a discussion that's been running for a long time, but has kicked into overdrive because of Apple's release of a new operating system for iPhones and the launch of new services like Facebook Instant Articles and Apple News. And it's something you'll be hearing more and more about if you read things online, because it touches on something very near and dear to every online writer's heart -- whether we can make money publishing on the Internet, and the sneaking suspicion that the reasonably journalist-friendly economic climate of the past two or three years may be a mirage.

Gannett retracts buyout offer at Detroit Free Press

In late August, Gannett announced that it was offering a voluntary buyout plan to staffers 55 and over with at least 15 years service, part of an effort to “better align our structure to become a next generation media company.” Eligible employees have 45 days to take the offer, which reportedly amounts to about a year’s pay for a 25-year veteran. So sometime in mid-October, expect to hear about departures of veterans from USA Today, the Arizona Republic, and other Gannett publications. It’s become a familiar, orderly ritual in the newspaper business. But at one Gannett paper, the process surrounding these buyouts has been anything but smooth.

When the Newspaper Guild representing employees of the Detroit Free Press tried to bargain over the terms of the deal, Gannett withdrew the offer within 24 hours. That turn of events has frustrated at least some staffers who would have qualified for the buyout and has sparked concern that, if the offer is not reinstated, the company will instead opt for layoffs to get the targeted cost savings. In the past, layoffs have been conducted in reverse order of seniority, affecting younger employees first.

AT&T sues former workers, alleging secret scheme to unlock hundreds of thousands of phones

AT&T has filed suit against former employees alleged to have been paid tens of thousands of dollars to install malware on company computers to help “hundreds of thousands” of AT&T customers unlock their smartphones without permission. California-based Swift Unlocks, which allegedly orchestrated the scheme and in turn sold the illicit unlocking services to AT&T customers, is also being sued.

The unlocking of smartphones has been a hotly debated issue as the Federal Communications Commission has introduced new rules over the past few years. Most carriers, including AT&T, often sell phones at discounted rates because they know they can recoup that money by selling their own wireless services for the devices. To make sure customers stay long enough to pay back the phone subsidy, carriers install locking software that won’t allow phones to work on other carriers’ networks. Once you’ve paid off your wireless contract, the FCC now requires carriers to give customers an unlock code that will allow them to take their device to another wireless provider — if they so choose. AT&T’s suit says Swift Unlocks, based in Anaheim (CA), was using employees inside AT&T’s customer service center in Bothell (WA) to secretly obtain unlock codes for devices that were still under contract, which means the carrier had no obligation to release them to competing carriers.

September 18, 2015 (Rev. Dr. Everett C. Parker)

BENTON'S COMMUNICATIONS-RELATED HEADLINES for FRIDAY, SEPTEMBER 18, 2015

See Upcoming Events On Our Calendar: https://www.benton.org/calendar

REMEMBERING REV DR EVERETT C PARKER
   Tribute to Everett Parker - press release
   Benton Foundation Celebrates the Life of Reverend Everett C. Parker - press release

FCC MEETING
   FCC Modernizes Broadcast Contest Rule for Online Access
   FCC Proposes Rules to Promote Reliable Submarine Cable
   FCC Announces Excellence in Economics, Engineering Award Winners - press release [links to web]

OWNERSHIP
   With Cablevision Deal, Altice Considers More Potential Acquisitions
   Verizon's McAdam: We're open to talking to Dish about spectrum -- but won't buy whole company
   Altice Expected to Try to Cut Programming Costs [links to web]
   Analysts: T-Mobile could become takeover target for Altice, other cable players following Cablevision deal [links to web]

WIRELESS/SPECTRUM
   Lawmakers Send Letter to FCC Regarding Tower Workers' Radiofrequency Exposure
   Verizon Says First US Carrier to Offer Cellphone Roaming in Cuba [links to web]
   AT&T stalls launch of Wi-Fi calling for the iPhone [links to web]
   Mobile Video High on Comcast's Wi-Fi Agenda [links to web]

SPECIAL ACCESS
   Parties Seeking Access to Data and Information Filed in Response to the Special Access Data Collection - public notice [links to web]
   FCC Further Extends Comment Deadlines in Special Access Proceeding - public notice [links to web]
   FCC Takes Major Step in Review of Competition in $40 Billion Special Access Market - press release [links to web]

INTERNET/BROADBAND
   The Internet Investment ‘Meltdown’ That Isn’t - Tim Karr op-ed [links to web]
   GCI Revs Up 1-Gig Service [links to web]

TELEVISION
   Notice of Effective date of Revised Effective Competition Rules - public notice [links to web]
   TVB: Digital, Spectrum, FCC, Wheeler Are Buzzwords at Forward Conference [links to web]

CONTENT
   BBC to launch Netflix-style US streaming service [links to web]
   Apple wins ruling to end Samsung’s smartphone infringement [links to web]
   Mobile Video High on Comcast's Wi-Fi Agenda [links to web]
   Apple will ask Supreme Court to hear its e-books price-fixing case [links to web]
   Executive Vice President: Frontier Video Launch Planned This Year [links to web]
   Bitcoin’s lasting legacy: Software or currency? [links to web]

SURVEILLANCE
   Here's How You Can Find Out If You Were Spied On By the UK and US Governments [links to web]

PRIVACY/SECURITY
   Why the FTC, America’s top privacy regulator, actually hates a privacy bill everyone else seems to want [links to web]
   Federal Inspectors Want to Double-Check How Agencies Fared During 'Cyber Sprint' [links to web]
   Manhattan DA opens international cyberthreat sharing nonprofit [links to web]

GOVERNMENT & COMMUNICATIONS
   PatentsView: Driving Open Government Through Data - Commerce Department press release [links to web]

ELECTIONS & MEDIA
   CNN breaks ratings record with GOP debate [links to web]
   Can we stop blaming the media for Donald Trump? Nope. Not at all. - WaPo op-ed [links to web]
   It’s time to retire the Equal-Time Rules - AEI op-ed [links to web]

JOURNALISM
   The Reporters Committee and US media groups join the fight over ‘right to be forgotten’ rules [links to web]
   Facebook launches Signal, a tool to help journalists sort through the noise [links to web]

ADVERTISING
   Online Ad Research: Half of Impressions Now From Mobile Devices [links to web]
   Apple vs Google vs Facebook and the slow death of the web - The Verge analysis [links to web]

ACCESSIBILITY
   Ensuring Equal and Effective Communications for All - ITU op-ed [links to web]

DIVERSITY
   Fashion, politics, and feminism: The women’s magazines for a new generation [links to web]

STORIES FROM ABROAD
   China tells US tech companies to sign PRISM-like cyber-loyalty pact [links to web]
   Verizon Says First US Carrier to Offer Cellphone Roaming in Cuba [links to web]

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REMEMBERING REV DR EVERETT C PARKER

TRIBUTE TO EVERETT PARKER
[SOURCE: United Church of Christ, AUTHOR: Cheryl Leanza]
Rev. Dr. Everett C. Parker passed away early in the morning on Sept 17 at the age of 102. He was the first director of Communications in 1957 for the newly-formed United Church of Christ. In that role he founded the United Church of Christ, Office of Communication, Inc, a media reform and accountability ministry with a civil rights agenda, that worked to improve the coverage and employment of women and people of color in broadcasting and other media. Dr. Parker was named one of the most influential men in broadcasting by the trade publication Broadcasting Magazine and is featured Museum of Broadcast Communications Encyclopedia of Television. "We will always be grateful for Dr. Parker's role in bringing community voices to federal agencies. Much of the successful activism today related to Internet openness and media consolidation traces back to Dr. Parker's work in the 1950s and 1960s," noted Earl Williams, chair of UCC OC Inc. Before the litigation brought by UCC OC Inc. against the Federal Communications Commission in a famous duo of cases known as UCC v. FCC, ordinary people had no right to file comments or register their views at the FCC. Williams explained, "the millions of people who asked the FCC to protect net neutrality [in 2014] can credit Dr. Parker and his work at UCC OC Inc. for their right to do so."
benton.org/headlines/tribute-everett-parker | United Church of Christ | FCC Chairman Wheeler Statement | FCC Commissioner Clyburn Statement | Public Knowledge | Broadcasting & Cable
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BENTON FOUNDATION CELEBRATES THE LIFE OF REVEREND EVERETT C. PARKER
[SOURCE: Benton Foundation, AUTHOR: Press release]
All of us at the Benton Foundation are saddened by the news of Rev Everett Parker’s passing. His work inspires us, the public interest community, and all advocates for a better world. His mission, shared by the Benton Foundation, is to give help to people who are voiceless, so that they may be heard. In 2012, our founder, Charles Benton, received the Everett C. Parker Award in recognition of his many years of leadership and support for promoting the public interest in traditional and digital media. In accepting the award, Charles highlighted three lessons from Rev Parker’s life that serve for a model for us at the foundation: 1) The work has to be driven by an ethic. 2) You need patience; it takes a while to accomplish things. 3) Don’t be afraid of difficult challenges. We are thankful for these lessons today and embrace them as we endeavor to carry on Rev Parker’s work for years to come.
benton.org/headlines/benton-foundation-celebrates-life-reverend-everett-c-parker | Benton Foundation
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FCC MEETING

FCC MODERNIZES BROADCAST CONTEST RULE FOR ONLINE ACCESS
[SOURCE: Federal Communications Commission, AUTHOR: Press release]
The Federal Communications Commission adopted rules that allow broadcasters to disclose contest rules online as an alternative to broadcasting them over the air. Adopted in 1976, the Contest Rule requires broadcasters to disclose important contest information fully and accurately, and to conduct contests substantially as announced. Sept 17's rule change preserves these requirements, but modernizes how broadcast stations can meet their disclosure obligation by announcing their contest terms over the air or by posting that information on an Internet website. The Order also adopts related implementing rules, including the requirement that broadcasters periodically announce over the air the website address where their contest rules can be found. The FCC began this rulemaking in response to the dramatic changes that have occurred in the way Americans obtain information since the Contest Rule was adopted almost four decades ago. The rule changes give broadcast stations more flexibility in the way they comply with the Contest Rule, and give consumers a more convenient way to obtain contest information normally aired through television and radio advertisements. [MB Docket No. 14-226]
benton.org/headlines/fcc-modernizes-broadcast-contest-rule-online-access | Federal Communications Commission | FCC Report and Order | Wheeler Statement | Clyburn Statement | Pai Statement | O'Rielly Statement | Broadcasting & Cable | The Hill
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FCC PROPOSES RULES TO PROMOTE RELIABLE SUBMARINE CABLE
[SOURCE: Federal Communications Commission, AUTHOR: Press release]
The Federal Communications Commission proposed rules that would require submarine cable licensees to report significant outages to the FCC to help safeguard this critical communications infrastructure and promote reliable
communications for businesses and consumers. There are approximately 60 submarine (that is, undersea) cables that provide connectivity -- voice, data and Internet -- between the mainland US and Alaska, Hawaii, Guam, American Samoa, the Northern Mariana Islands, Puerto Rico, and the US Virgin Islands, as well as virtually all connectivity between the US and the rest of the world. While submarine cables are vital to America’s economic and national security, licensees currently only report outages on an ad hoc basis, and the information received by the FCC is too limited to be of use.The Commission is therefore seeking timely information about submarine cable outages, with enough detail to understand the nature and impact of any damage and disruption to communications, help mitigate any impact on emergency services and consumers, and assist in service restoration. [GN Docket No. 15-206]
benton.org/headlines/fcc-proposes-rules-promote-reliable-submarine-cable | Federal Communications Commission | Wheeler Statement | Clyburn Statement | Rosenworcel Statement | Pai Statement | O'Rielly Statement
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OWNERSHIP

WITH CABLEVISION DEAL, ALTICE CONSIDERS MORE POTENTIAL ACQUISITIONS
[SOURCE: New York Times, AUTHOR: Michael J de la Merced]
The European telecommunication company Altice has made no secret that it wants to become the next big player in the American cable landscape. After Cablevision, however, what else can it buy? As the industry consolidates, putting more power into the hands of a small group of giants, future acquisition targets are smaller and smaller. Already, Comcast, Charter Communications and now Altice have been steadily snapping up the major players. Time Warner Cable, the second-biggest cable operator in the country after Comcast, is poised to be absorbed into Charter, as is Bright House. Now Altice has acquired both Cablevision, the jewel of the New York City metropolitan area, and Suddenlink to vault into the top ranks of the industry. The European telecom has held talks with a number of smaller cable operators, according to people briefed on the matter, which could go toward a roll-up of the industry and put it on stronger competitive footing against Comcast and Charter. The biggest remaining prize is Cox, which is still owned by its founding eponymous family. With more than four million subscribers, it would provide a significant boost to Altice’s ambitions -- but could also draw scrutiny from regulators wary of the rapidly contracting industry. Other potential acquisitions include Mediacom, another privately held cable company with roughly 1.3 million customers, and Cable One, a publicly traded operator spun off from Graham Holdings that has about 686,000 subscribers.
benton.org/headlines/cablevision-deal-altice-considers-more-potential-acquisitions | New York Times | Broadcasting & Cable
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VERIZON'S MCADAM: WE'RE OPEN TO TALKING TO DISH ABOUT SPECTRUM -- BUT WON'T BUY WHOLE COMPANY
[SOURCE: Fierce , AUTHOR: Phil Goldstein]
Verizon has no interest in buying Dish Network but is open to discussing how Verizon could get access to Dish's wireless spectrum or forge some kind of wholesale arrangement, according to Verizon CEO Lowell McAdam. McAdam said Dish's satellite TV business is "not consistent with a strategy of where we see the market going," especially with Verizon's nascent Go90 over-the-top mobile video product. However, McAdam acknowledged that "we've had discussions about how we could provide [Dish Network Chairman and CEO Charlie Ergen] with megabytes and how he could pay for it with spectrum." McAdam indicated Verizon would be happy to have discussions about reasonable commercial terms for Dish's spectrum assets but that Verizon would not purchase Dish just to get access to its spectrum.
benton.org/headlines/verizons-mcadam-were-open-talking-dish-about-spectrum-wont-buy-whole-company | Fierce
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WIRELESS/SPECTRUM

LAWMAKERS SEND LETTER TO FCC REGARDING TOWER WORKS' RADIOFREQUENCY EXPOSURE
[SOURCE: Multichannel News, AUTHOR: John Eggerton]
Sen Richard Blumenthal (D-CT) and House Communications Subcommittee Ranking Member Anna Eshoo (D-CA) are accusing the Federal Communications Commission of failing to enforce safety guidelines on cell tower worker exposure to radiofrequency radiation, saying they are putting the health and safety of a quarter of a million workers at risk. In a letter to FCC Chairman Tom Wheeler, the lawmakers said that "even though the FCC recommends that wireless carriers control exposure to harmful RF radiation using safety protocols such as signs, barricades, and training, it has come to our attention that these recommendations have not consistently been implemented to protect workers." They said beyond the hazards to cell tower workers of free-standing structures, the towers are now found atop all kinds of buildings from apartments and schools to hospitals, churches and fire stations, "putting RF technicians but also roofers, water proofers, electricians, carpenters, building maintenance personnel, HVAC technicians, painters, firefighters" and others at risk from the radiation. The lawmakers want the FCC to finalize a notice of proposed rulemaking and to consult with the Occupational Safety and Health Administration to make sure it has teeth.
benton.org/headlines/lawmakers-send-letter-fcc-regarding-tower-workers-radiofrequency-exposure | Multichannel News
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FCC Modernizes Broadcast Contest Rule for Online Access

The Federal Communications Commission adopted rules that allow broadcasters to disclose contest rules online as an alternative to broadcasting them over the air. Adopted in 1976, the Contest Rule requires broadcasters to disclose important contest information fully and accurately, and to conduct contests substantially as announced. Sept 17's rule change preserves these requirements, but modernizes how broadcast stations can meet their disclosure obligation by announcing their contest terms over the air or by posting that information on an Internet website.

The Order also adopts related implementing rules, including the requirement that broadcasters periodically announce over the air the website address where their contest rules can be found. The FCC began this rulemaking in response to the dramatic changes that have occurred in the way Americans obtain information since the Contest Rule was adopted almost four decades ago. The rule changes give broadcast stations more flexibility in the way they comply with the Contest Rule, and give consumers a more convenient way to obtain contest information normally aired through television and radio advertisements. [MB Docket No. 14-226]

FCC Proposes Rules to Promote Reliable Submarine Cable

The Federal Communications Commission proposed rules that would require submarine cable licensees to report significant outages to the FCC to help safeguard this critical communications infrastructure and promote reliable communications for businesses and consumers. There are approximately 60 submarine (that is, undersea) cables that provide connectivity -- voice, data and Internet -- between the mainland US and Alaska, Hawaii, Guam, American Samoa, the Northern Mariana Islands, Puerto Rico, and the US Virgin Islands, as well as virtually all connectivity between the US and the rest of the world.

While submarine cables are vital to America’s economic and national security, licensees currently only report outages on an ad hoc basis, and the information received by the FCC is too limited to be of use.The Commission is therefore seeking timely information about submarine cable outages, with enough detail to understand the nature and impact of any damage and disruption to communications, help mitigate any impact on emergency services and consumers, and assist in service restoration.
[GN Docket No. 15-206]

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