October 2015

BENTON'S COMMUNICATIONS-RELATED HEADLINES for FRIDAY, OCTOBER 23, 2015

A quick look at next week’s busy agenda https://www.benton.org/calendar/2015-10-25--P1W

FCC OPEN MEETING
   FCC Takes Next Big Steps In Reducing Inmate Calling Rates - press release
   Civil Rights, Media Justice, and Labor Groups Applaud the FCC for Further Action on Unfair Prison Phone Rates [links to National Hispanic Media Coalition]
   FCC Proposes Streamlined Ownership Procedures for Broadcasters - press release
   FCC Promotes Higher Frequency Spectrum for Future Wireless Technology - press release
   FCC Adopts Four Items Prior to Oct 22 Meeting
   FCC Chairman Wheeler: Multiple Wireless Bidders Will Show Up to Auction
   FCC Chief Vows to Require "Equal Time" on TV for Candidates

INTERNET/BROADBAND
   Who’s off the Internet — and why
   Reps Eshoo, Walden Introduce ‘Dig Once’ Broadband Deployment Bill - press release
   Remarks of FCC’s Gigi Sohn on the Digital Divide - speech
   Google got it wrong: The Internet won't be global by 2020 - analysis [links to Benton summary]

CONTENT
   Google Books’ Win May Threaten Other Media [links to Benton summary]
   What the Google Books Victory Means for Readers - The Atlantic analysis [links to Benton summary]
   Pandora reaches deal to keep pre-1972 music [links to Hill, The]
   WME/IMG and AGT Plan to Combine the Internet of Things With Music and Sports [links to AdWeek]
   HBO CEO doesn’t get why ISPs like Comcast won’t embrace HBO Now [links to Ars Technica]
   Kansas City, Toronto libraries are engaged in a war of Baseball Tweets [links to Kansas City Star]

SECURITY/PRIVACY
   Cyber Insecurity
   White House Endorses CISA, Bucking Privacy Groups [links to National Journal]
   Editorial: The Senate should take a crucial first step on cybersecurity [links to Washington Post]

WIRELESS/SPECTRUM
   The Internet of Things will be as corrupt as the companies that control it - The Verge analysis [links to Benton summary]
   Unlocking the potential of the Internet of Things - Brookings [links to Benton summary]
   CTIA's Baker: Wireless Cos. Will Be Bidding Billions in Auction [links to Broadcasting&Cable]

ADVERTISING
   Google Seeks Allies In Its War Against Ad-Blocking [links to Reuters]

TELEVISION
   Rising retransmission fees are masking 'sinister advertising trends' for TV broadcasters, analyst says [links to Fierce]

OWNERSHIP
   Malone’s Liberty Global in Talks to Buy Cable & Wireless Communications [links to Wall Street Journal]

GOVERNMENT & COMMUNICATIONS
   Justice Department, Secret Service and other agencies are beginning to understand how to use Bitcoin for forensics [links to Washington Post]
   Highly religious Americans are less likely than others to see conflict between faith and science [links to Pew Research Center]

ACCESSIBILITY
   NavCog, the new app that serves as eyes for the blind [links to Washington Post]

STORIES FROM ABROAD
   Europe Is About to Adopt Bad Net Neutrality Rules. Here’s How to Fix Them - Barbara van Schewick op-ed
   EU favours competition over deals in telecoms sector
   Google launches fund “to spark new thinking” in European journalism [links to Benton summary]

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FCC OPEN MEETING

FCC TAKES NEXT BIG STEPS IN REDUCING INMATE CALLING RATES
[SOURCE: Federal Communications Commission, AUTHOR: Press release]
Acting on its mandate to ensure that rates for phone calls are just, reasonable and fair for all Americans, the Federal Communications Commission took further steps to rein in the excessive rates and egregious fees on phone calls paid by some of society’s most vulnerable: people trying to stay in touch with loved ones serving time in jail or prison. With the cost of a call sometimes ballooning to $14 per minute once inside prison walls, the FCC for the first time capped rates for local and in-state long-distance inmate calling, and cut its existing cap on interstate long-distance calls by up to 50 percent. At the same time, the FCC closed loopholes by barring most add-on fees imposed by inmate calling service (ICS) providers, and set strict limits on the few fees that remain. Extra fees and charges can increase the cost of families staying in touch by phone with loved ones who are incarcerated by as much as 40 percent. The new caps fully cover the enhanced security requirements of inmate calling, while allowing providers a reasonable return.
benton.org/headlines/fcc-takes-next-big-steps-reducing-inmate-calling-rates | Federal Communications Commission
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FCC PROPOSES STREAMLINES OWNERSHIP PROCEDURES FOR BROADCASTERS
[SOURCE: Federal Communications Commission, AUTHOR: Press release]
The Federal Communications Commission proposed to extend the same streamlined procedures and rules used to review ownership in common carriers licensees to broadcast licensees, with certain tailored modifications. Oct 22's proposals modernize the filing and review procedures for the current business environment, adopting a standardized process for broadcast licensees' requests to exceed the 25 percent statutory foreign ownership benchmark. The proposals do not modify or change the statutory foreign ownership limits or the public interest standard of review. The proposed process changes could facilitate investment from new sources of capital at a time of growing need for investment in this important sector of our national's economy. The proposals will also provide the broadcast sector with greater transparency and predictability, and reduce regulatory burdens and costs.
benton.org/headlines/fcc-proposes-streamlined-ownership-procedures-broadcasters | Federal Communications Commission
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FCC PROMOTES HIGHER FREQUENCY SPECTRUM FOR FUTURE WIRELESS TECHNOLOGY
[SOURCE: Federal Communications Commission, AUTHOR: Press release]
The Federal Communications Commission took steps to maintain the US leadership in wireless by proposing new rules for wireless broadband in wireless frequencies above 24 GHz. These proposed rules are an opportunity to move forward on creating a regulatory environment in which these emerging next-generation mobile technologies -- such as so-called 5G mobile service -- can potentially take hold and deliver benefits to consumers, businesses, and the US economy. It was previously assumed physical and tech limitations could not support mobile service in these bands. New tech developments may allow the use of these high frequencies for mobile applications -- like 5G serve -- with significantly more capacity and faster speeds for next generation mobile service. Building off of years of successful spectrum policy, this NPRM proposes to create new flexible use service rules in the 28 GHz, 37 GHz, 39 GHz, and 64-71 GHz bands. The NPRM proposes to make these bands available using a variety of authorization schemes, including traditional wide area licensing, unlicensed, and a shared approach that provides access for both local area and wide area networks. In addition, the NPRM provides a path for a variety of platforms and uses, including satellite uses, to coexist and expand through market-based mechanisms. The NPRM seeks extensive comment on the service, licensing, and technical rules for facilitating flexible use in these bands. Finally, the NPRM seeks comment on other bands above 24 GHz that may be considered in the future.
benton.org/headlines/fcc-promotes-higher-frequency-spectrum-future-wireless-technology | Federal Communications Commission
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FCC ADOPTS FOUR ITEMS PRIOR TO OCT 22 MEETING
[SOURCE: Federal Communications Commission, AUTHOR: Public Notice]
Prior to the start of the Federal Communications Commission’s October 22 open meeting, the Commission adopted the following items:
A Report and Order addressing when and in what areas 600 MHz Band wireless licensees will be deemed to “commence operations” for the purposes of establishing when the secondary and unlicensed users must cease operations and vacate the 600 MHz Band in those areas.
A Third Report & Order and First Order on Reconsideration that adopts rules to govern inter-service interference between broadcast television stations and wireless licensees in the 600 MHz Band following the incentive auction and sets out protection criteria for television stations and wireless operations in the band.
Second Order on Reconsideration to provide additional flexibility to broadcasters interested in the incentive auction channel sharing option by clarifying that “back-up” channel sharing
agreements are permitted under the rules and providing more time for successful incentive auction bidders to transition to shared facilities after the auction.
A Further Notice of Proposed Rulemaking on whether to modify, in part, the four-year compensation rate plan for video relay service (VRS) and whether to adopt measures that may
enhance the functional equivalence of VRS. In the same item, the Commission will consider an Order to modify, in part, the currently applicable VRS compensation rates pending action on the
Further Notice of Proposed Rulemaking.
benton.org/headlines/fcc-adopts-four-items-prior-oct-22-meeting | Federal Communications Commission
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FCC CHAIRMAN WHEELER: MULTIPLE WIRELESS BIDDERS WILL SHOW UP TO AUCTION
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
Count Federal Communications Commission Chairman Tom Wheeler among those not worried by talk about Verizon not being a major incentive auction player and Sprint's decision not to participate in the auction. Asked about how that might affect the success of the auction in terms of dollars brought in, Chairman Wheeler said "I think we'll have a very successful auction." Chairman Wheeler said what they were seeing was players positioning themselves, talking about "well, maybe I am not going to show too many cards about whether I will participate or maybe I will focus on how this person decides not to participate..." He called it all "pre-auction shenanigans" that would be expected in any kind of marketplace. Chairman Wheeler said he was "confident there will be multiple broadcast licensees putting up spectrum for auction, and multiple forward auction bidders to use that spectrum for competitive wireless services." He said the FCC was not keeping score by dollars and cents but by how much spectrum the FCC could repurpose. Asked to respond to broadcaster questions about whether the auction is truly voluntary, Chairman Wheeler seemed incredulous. "I don’t think there are any FCC agents with guns to the heads of broadcasters. You are free to decide whether you want to participate or not and I think that is the definition of voluntary."
benton.org/headlines/fcc-chairman-wheeler-multiple-wireless-bidders-will-show-auction | Broadcasting&Cable
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FCC CHIEF VOWS TO REQUIRE
"EQUAL TIME" ON TV FOR CANDIDATES
[SOURCE: National Journal, AUTHOR: Brendan Sasso]
Federal Communications Commission Chairman Tom Wheeler promised to enforce FCC regulations requiring television stations to give political candidates equal opportunities for airtime. "The rules are pretty clear. Rules are rules," Chairman Wheeler said. "I hope that we have developed a reputation as folks who enforce the rules." Hillary Clinton's appearance earlier in Oct on "Saturday Night Live" could trigger the so-called "equal time" rules, as could Donald Trump's plan to host the long-running NBC comedy show in Nov. That doesn't necessarily mean Lincoln Chaffee will be the next host of "SNL" -- but it could mean that local NBC affiliates across the country will have to give presidential candidates access to equal TV time. Lawrence Lessig, a Harvard University law professor who is running a long-shot presidential campaign to draw attention to campaign-finance issues, has already filed requests with dozens of NBC affiliates for three minutes and 12 seconds of airtime following Clinton's appearance on "SNL" in Oct.
benton.org/headlines/fcc-chief-vows-require-equal-time-tv-candidates | National Journal
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INTERNET/BROADBAND

WHO’S OFF THE INTERNET?
[SOURCE: Washington Post, AUTHOR: Brian Fung]
If the gap between technology rich and technology poor was primarily physical in the 1990s, the gap in this decade is increasingly skills-based. To be “left behind” in the 21st century now means something completely different compared with what it meant at the end of the 20th. Then, Washington worried about getting enough telephones and personal computers into U.S. households. Although that challenge may seem like a distant memory, it has since been replaced by others. Today, access to high-speed Internet — and the know-how to use it — have become regulators’ chief worry. They not only pose new problems for society but also, in subtle ways, change who needs the most help. A recent study by the Pew Research Center found that only 19 percent of the 51 million people without Internet access blame high prices, and only 7 percent cite the availability of broadband. Those who aren’t on the Internet today are saying they lack something else: the guidance that would make it an object of value to them. Far more, 34 percent, told Pew that the Internet simply isn’t relevant to their lives. And 32 percent said it is too hard to use. In other words, adding more connectivity won’t close the digital divide if those who stand to benefit aren’t interested in what the Internet has to offer.
benton.org/headlines/whos-internet-and-why | Washington Post
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REPS ESHOO, WALDEN INTRODUCE 'DIG ONCE' BROADBAND DEPLOYMENT BILL
[SOURCE: House of Representatives, AUTHOR: Press release]
House Communications Subcommittee Ranking Member Anna Eshoo (D-CA) and Subcommittee Chairman Greg Walden (R-OR) introduced the Broadband Conduit Deployment Act of 2015, commonly referred to as ‘dig once’ legislation. This bipartisan, commonsense legislation would mandate the inclusion of broadband conduit -- plastic pipes which house fiber-optic communications cable -- during the construction of any road receiving federal funding if there is a demonstrated need for broadband in the area within the next 15 years. “Today our information highways are just as important as our interstate highways,” said Ranking Member Eshoo, who introduced similar legislation in 2009 and 2011. “By laying broadband conduit during construction of roads that receive federal funding, broadband providers can later install fiber-optic cable without costly excavation of newly-built roads. ‘Dig once’ is a commonsense bipartisan policy that will significantly reduce the cost of broadband deployment in our country.” According to a study by the Government Accountability Office, ‘dig once’ policies can save from 25 to 33 percent in construction costs in urban areas and approximately 16 percent in rural areas. A 2012 Executive Order implemented a ‘dig once’ policy similar to Ranking Member Eshoo’s original legislation. But the Executive Order only included a requirement for the Department of Transportation to provide guidance to states and encourage their implementation of a ‘dig once’ policy. This bill implements a more effective mechanism for adoption of ‘dig once.’
benton.org/headlines/reps-eshoo-walden-introduce-dig-once-broadband-deployment-bill | House of Representatives | Rep Eshoo, Walden Bill
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REMARKS OF FCC'S GIGI SOHN ON THE DIGITAL DIVIDE
[SOURCE: Federal Communications Commission, AUTHOR: Gigi Sohn]
When thinking about the digital divide in America, I find that a useful number to wrap your brain around the nature of the challenge is 50/50. Let me elaborate. If you look at the broadband adoption numbers in the US, there are two categories where we have pretty much reached universal adoption -- people under the age of 50 and people earning over $50,000. So what are we doing at the Federal Communications Commission to close the digital divide and make sure every American can enjoy the benefits of the Internet revolution? For starters, we at the FCC strongly believe that it’s not enough to make sure the Internet is accessible to all. The Internet must also be fast, and the Internet must be open. Now let me walk through some of the FCC’s key initiatives to close America’s broadband gaps. The use of the plural “gaps” is purposeful. As you all know, there is not just one digital divide -- there is the rural gap, the income gap, the homework gap and the accessibility gap, among others.... Access to broadband equals access to opportunity. Opportunities for jobs; for education; for health care; for civic participation; for our environment. This is less about technology, and more about people. This is less of an infrastructure challenge, and more of a civil rights and human rights challenge.
benton.org/headlines/remarks-fccs-gigi-sohn-digital-divide | Federal Communications Commission
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SECURITY/PRIVACY

CYBER INSECURITY
[SOURCE: New America Foundation, AUTHOR: Robert Morgus]
[Commentary] Much of the debate around cybersecurity, particularly in Congress, would lead you to believe that we face technical challenges that are nearly insurmountable, and that our best bet is to institute some form of better information sharing between the government and the private sector to come up with better guidelines for software vulnerability disclosure. These solutions, if crafted carefully, do have potential. They do not, however, address the real problem. Despite the narrative, the crux of our current cyber problem is largely not technical at all, but instead comes down to organizational behavior. Bad security practices and poor investment in Office of Personnel Management’s IT security are largely culpable for that hack, and Sony was compromised via basic social engineering. The humans were the weaknesses in the system that the bad guys sought to exploit. These are the vulnerabilities that are in the most urgent need of patching.
benton.org/headlines/cyber-insecurity | New America Foundation
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STORIES FROM ABROAD

EUROPE IS ABOUT TO ADOPT BAD NET NEUTRALITY RULES. HERE'S HOW TO FIX THEM
[SOURCE: Medium, AUTHOR: Barbara van Schewick]
[Commentary] On October 27, the European Parliament will vote on rules intended to protect network neutrality in the European Union (EU). However, the proposal about to be adopted fails to deliver network neutrality to the EU and is much weaker than current net neutrality rules in the United States. Fortunately, it’s not too late to change course. Members of Parliament can still secure meaningful network neutrality for Europe  --  if they adopt key amendments on Oct 27.
Problem 1: The proposal allows Internet service providers to create fast lanes for companies that pay through the specialized services exception.
Problem 2: The proposal generally allows zero-rating and gives regulators very limited ability to police it, leaving users and companies without protection against all but the most egregious cases of favoritism.
Problem 3: The proposal allows class-based discrimination, i.e. ISPs can define classes and speed up or slow down traffic in those classes even if there is no congestion.
Problem 4: The proposal allows ISPs to prevent “impending” congestion. That makes it easier for them to slow down traffic anytime, not just during times of actual congestion.
To save the open Internet in Europe, members of the European Parliament need to adopt the amendments. If a majority of the members who vote approves this flawed compromise, the rules are adopted and become law. Europe will have far weaker network neutrality rules than the US, and the European Internet would become less free and less open.
[Barbara van Schewick is the Director of the Stanford Center for Internet and Society]
benton.org/headlines/europe-about-adopt-bad-net-neutrality-rules-heres-how-fix-them | Medium
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COMPETITION IN EUROPE
[SOURCE: Financial Times, AUTHOR: Daniel Thomas]
The European telecoms sector’s hopes for more consolidation took a blow after the European Union’s digital commissioner backed more competition instead of more deals. In his first significant statement on the telecoms sector, Andrus Ansip said that “axing competition rules is not the answer.” He told an audience of industry executives and analysts that this “would only shift the cost of the networks on to consumers. They would have less choice and higher prices. It would be the opposite of what we want.” It was a stunning rebuke for an industry that had been making the case for in-market consolidation, promising greater investment in next generation networks.
benton.org/headlines/eu-favours-competition-over-deals-telecoms-sector | Financial Times
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