November 2015

November 30, 2015 (5 Public Advocates)

BENTON'S COMMUNICATIONS-RELATED HEADLINES for MONDAY, NOVEMBER 30, 2015

This week’s events https://www.benton.org/calendar/2015-11-29--P1W


FCC AGENDA
   Tentative Agenda for December 2015 Open Meeting - press release
   Streamlining Rules and Processes: New Steps Forward - press release
   FCC Clarifies Procedure for Disbursing Reverse Auction Incentive Payments - public notice
   Enforcement Fines: The Collection Process - FCC

PRIVACY/SECURITY
   Foreign Intelligence Surveillance Court names five lawyers as public advocates
   Choice between security and liberty a false one - op-ed
   Police Chiefs and Prosecutors Call on Lawmakers to Address ‘Critical Threat’ of Encryption [links to Benton summary]
   Tech industry defends encryption amid new questions following Paris attacks [links to Washington Post]
   How Obama Unilaterally Chilled Surveillance - Heritage Foundation op-ed [links to Benton summary]

CYBERSECURITY
   Iranian Hackers Attack State Dept via Social Media Accounts [links to Benton summary]
   Chinese, others hack Interior data 19 times [links to Benton summary]

INTERNET/TELECOMMUNICATIONS
   Focus Turns to Judge Tatel in Latest Appeal of Net Neutrality Rules
   Obamanet Goes to Court - editorial [links to Benton summary]
   FCC Votes to Harmonize Pole-Attachment Rates
   AT&T continues to push Lifeline proposal, wants FCC to include Internet services in program

SPECTRUM/WIRELESS
   AT&T predicted to dominate 600 MHz incentive auction with $10B in bids, outshining T-Mobile's $8B spend [links to Benton summary]
   AT&T, Verizon try to prevent ban on text message blocking

OWNERSHIP
   NAB: Chairman Wheeler Shows Shocking Disregard for Congress
   Comcast-Backed Firm Acquires Vyve Towers [links to Benton summary]

CONTENT
   Judge Grants BMG Judgment in DMCA Suit Against Cox [links to Benton summary]
   Facebook's 'Most Used Words' app collected a ton of your data. But not more than anything else on Facebook [links to Los Angeles Times]
   Studios, networks, talent try to protect their interests in the emerging on-demand TV economy [links to Wall Street Journal]

ELECTIONS AND MEDIA
   Fox News and Donald Trump: A complicated relationship [links to Washington Post]
   Is the 2016 election truly unprecedented? Sort of. [links to Washington Post]
   Politico just handed Republicans a ‘liberal media’ talking point [links to Washington Post]
   Donald Trump vs. the media gets personal [links to Politico]

GOVERNMENT & COMMUNICATIONS
   Beyond Distrust: How Americans View Their Government - research
   House Minority Whip Hoyer turns to text messaging to get a quicker, more accurate vote count on critical bills [links to Hill, The]

COMPANY NEWS
   T-Mobile’s gutsy Thanksgiving deal to gain customers is spooking investors
   Google’s Answer to Facebook Instant Articles Gets (Tentative) Launch Date, Ad Partners [links to Benton summary]
   Meet Access, the Google Unit That’s Taking on Comcast and the Rest of the Cable Biz [links to Revere Digital]

STORIES FROM ABROAD
   Google Has Scrubbed Nearly Half Its ‘Right to Be Forgotten’ Requests -- Mostly From Facebook
   Can the World’s Beverage King Bring Better Broadband to Brazil? [links to Benton summary]

MORE ONLINE
   Online Shopping Tops Stores on Black Friday Weekend [links to Wall Street Journal]
   Editorial: Time to Bring Cuba Online [links to New York Times]

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FCC AGENDA

TENTATIVE AGENDA FOR DECEMBER 2015 OPEN MEETING
[SOURCE: Federal Communications Commission, AUTHOR: Press release]
The following items are tentatively on the agenda for the December Open Commission Meeting scheduled for Thursday, December 17, 2015:
US Telecom Petition for Forbearance: The Federal Communications Commission will consider a Memorandum Opinion and Order addressing a petition from USTelecom that seeks forbearance from various categories of statutory and Commission requirements applicable to incumbent local exchange carriers. (WC Docket No. 14-192)
Part 25 Rules for Space Stations and Earth Stations: The Commission will consider a Second Report and Order that streamlines, eliminates or updates numerous provisions of Part 25 of the Commission’s rules governing licensing and operation of space stations and earth stations for the provision of satellite communication services. (IB Docket No. 12-267)
benton.org/headlines/tentative-agenda-december-2015-open-meeting | Federal Communications Commission
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STREAMLINING RULES AND PROCESSES: NEW STEPS FORWARD
[SOURCE: Federal Communications Commission, AUTHOR: FCC Chairman Tom Wheeler]
Over the course of my career I have witnessed many instances where regulatory delay and burdensome red tape slowed the pace of innovation and hampered investment in the communications sector, which plays such a vital role in our country's economic growth. One area of focus had been modernizing Part 25 of the Federal Communciations Commission's rules, which governs licensing and operation of space stations and earth stations for the provision of satellite communications services. Led by our International Bureau, the Commission has already revised or eliminated numerous Part 25 rule provisions. Last week, I circulated to my colleagues an Order making further changes to our Part 25 rules. This proposal would make the regulatory approval process for satellite licenses easier and more efficient, significantly reducing regulatory burdens and costs. The Second Report and Order streamlines, clarifies, eliminates, or amends rules to allow for more operational flexibility and better accommodate evolving technology while easing administrative burdens on licensees and Commission staff. While the Commission is committed to eliminating outdated, unnecessary rules to let the marketplace work, we must also preserve rules needed to protect consumers and competition. A second item to be considered at the Commission's next open meeting strikes that balance. The Commission will vote on an order partially granting a petition for forbearance filed by United States Telecom Association from various rules governing incumbent local phone companies, particularly the three remaining "Baby Bells"
benton.org/headlines/streamlining-rules-and-processes-new-steps-forward | Federal Communications Commission
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FCC CLARIFIES PROCEDURE FOR DISBURSING REVERSE AUCTION INCENTIVE PAYMENTS
[SOURCE: Federal Communications Commission, AUTHOR: Public notice]
In response to a number of comments and inquiries, the Wireless Telecommunications Bureau clarifies the circumstances under which the Commission will accept payment instructions to make incentive payments to an entity other than a winning reverse auction bidder. The Commission has stated that incentive payments will be disbursed “to the licensee that is the reverse auction applicant” and that, in making such disbursements, it will “follow winning reverse auction bidders’ payment instructions as set forth on their respective standardized incentive payment forms to the extent permitted by law.” We clarify that the winning reverse auction bidder need not be the owner of the account to which disbursement is made. Winning bidders may instruct that their payments be disbursed to a third party, such as a “qualified intermediary,” a “qualified trust,” an escrow account, or an account jointly owned by parties to a channel sharing agreement (CSA) who are named as owners of that account. The flexibility to instruct that payments be disbursed to a third party will facilitate channel sharing and thereby promote voluntary broadcaster participation in the reverse auction.
benton.org/headlines/fcc-clarifies-procedure-disbursing-reverse-auction-incentive-payments | Federal Communications Commission
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ENFORCEMENT FINES: THE COLLECTION PROCESS
[SOURCE: Federal Communications Commission, AUTHOR: FCC Enforcement Bureau Chief Travis LeBlanc]
The Enforcement Bureau has four guiding mandates: protect consumers, safeguard competition, secure communications networks, and police the integrity of Commission funds, programs and services. To better protect the public and strengthen accountability, the Bureau has made it a priority to streamline its processes, reduce its backlogs and provide more transparency into its enforcement activities. Recently, some questions were raised about the rate at which enforcement fines are collected, so we thought it would be helpful to offer a primer on the enforcement process.
benton.org/headlines/enforcement-fines-collection-process | Federal Communications Commission
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PRIVACY/SECURITY

PUBLIC ADVOCATES
[SOURCE: ars technica, AUTHOR: Cyrus Farivar]
Jonathan G. Cedarbaum, John D. Cline, Laura Donahue, Amy Jeffress, and Marc Zwillinger will act as outsider public advocates at the Foreign Intelligence Surveillance Court (FISC). Cedarbaum is veteran of the Department of Justice, having served most recently as the Acting Assistant Attorney General as part of the Office of Legal Counsel in the Obama Administration. Cline, by contrast, is a criminal defense attorney. According to his own bio, he served as co-counsel in many high-profile government cases, including United States v. Oliver L. North, United States v. Wen Ho Lee, and United States v. I. Lewis "Scooter" Libby. Laura Donahue is the only sitting academic in the group—she’s currently a professor at Georgetown Law. She has written extensively on national security law, privacy, Executive Order 12333, and the Foreign Intelligence Surveillance Act. Jeffress is currently a criminal defense lawyer, but she was previously a Justice Department Attaché to the US Embassy in London. There, Jeffress coordinated cooperation between American and British authorities. She is also a former prosecutor with the US Attorney’s Office for the District of Columbia. Zwillinger is a longstanding privacy advocate. Way back in 2008, he represented Yahoo in its litigation fighting complying with directives under the Protect America Act, the precursor to the FISA Amendments Act. In that case, according to his bio, Zwillinger became the first private lawyer ever to appear before the FISC. More recently, he continues to represent Apple in a federal drug case in New York as the company attempts to resist government pressure to extract data from a seized iPhone.
benton.org/headlines/foreign-intelligence-surveillance-court-names-five-lawyers-public-advocates | Ars Technica | The Hill
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CHOICE BETWEEN SECURITY AND LIBERTY A FALSE ONE
[SOURCE: CNN, AUTHOR: David Medine]
[Commentary] The Paris attacks have resulted in some calling for new laws that would outlaw technology companies from using encryption that cannot be accessed by the government through "backdoor" means. Yet this is an extraordinarily complex issue with multiple privacy and national security implications, and these issues should be thoughtfully and carefully examined -- we do not yet know what methods the ISIS terrorists used to plan the Paris attack. The Obama Administration announced a few weeks ago that it would not seek legislation to compel tech companies to provide the government with keys to encrypted information, citing the complexity of the problem. Instead, it stated that it intends to work with the tech industry toward a voluntary solution. This is a wise strategy that should not be abandoned. As chairman of the Privacy and Civil Liberties Oversight Board, I greatly appreciate the important contribution surveillance programs make to identifying terrorists and preventing future attacks. But as the 9/11 Commission noted in recommending the creation of the board, the choice between security and liberty is a false one. The Paris attacks were tragic, but we should take a deep breath before making hasty policy decisions and changing our surveillance laws.
[David Medine is chairman of the Privacy and Civil Liberties Oversight Board]
benton.org/headlines/choice-between-security-and-liberty-false-one | CNN
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INTERNET/TELECOMMUNICATIONS

JUDGE TATEL
[SOURCE: Wall Street Journal, AUTHOR: John McKinnon]
As a high-stakes appeal of the government’s network neutrality rule looms, telecommunications companies have found cause to take heart: The same judge who shot down two previous versions of the rule will help decide the latest challenge. But Judge David Tatel’s presence on the three-judge panel for the closely watched Dec. 4 appeal doesn’t necessarily mean the Federal Communications Commission and its high-profile rules are in trouble again, backers of the regulation say. They contend Judge Tatel’s selection could even boost the odds of victory for the FCC.
benton.org/headlines/focus-turns-judge-tatel-latest-appeal-net-neutrality-rules | Wall Street Journal
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FCC VOTES TO HARMONIZE POLE-ATTACHMENT RATES
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
The Federal Communications Commission has agreed to a cable operator/telecommunication joint petition to modify the cost-allocation model for pole attachments to ensure that the reclassification of Internet service providers as telecommunication does not result in higher attachment fees for cable ops. In the process, it effectively lowered the rate for telecoms, so both sides were celebrating. The FCC has for several years been taking steps to lower those costs and speed approvals to encourage broadband buildouts, which is one of the FCC's prime directives. The National Cable & Telecommunications Association (NCTA) and COMPTEL sought clarification of the rates and proposed an approach to regularize them, which the FCC accepted and will employ. It essentially brings the telecom rate down to approximately that of the cable rate, or about 7.4% of the annual cost of a pole. Not surprisingly, utility companies were not clamoring to be paid a lower rate.
benton.org/headlines/fcc-votes-harmonize-pole-attachment-rates | Broadcasting&Cable
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AT&T CONTINUES TO PUSH LIFELINE PROPOSAL, WANTS FCC TO INCLUDE INTERNET SERVICES IN PROGRAM
[SOURCE: Fierce, AUTHOR: Mike Dano]
In a new, lengthy filing with the Federal Communications Commission, AT&T reiterated its proposed changes to the agency's Lifeline program. Specifically, AT&T urged the FCC to offload most of the management functions of the program to the Universal Service Administrative Company, and to also allow Lifeline recipients to use the program to pay for their Internet access, whether that's wireless or wireline. AT&T's filing detailed a meeting between a handful of company executives and various FCC officials, where AT&T said that it "strongly supports Lifeline reform that is designed to give eligible users greater autonomy and remove service providers from all program administration duties, including enrollment and eligibility verification, delivering benefits to Lifeline consumers, performing annual recertification and de-enrolling consumers from the program."
benton.org/headlines/att-continues-push-lifeline-proposal-wants-fcc-include-internet-services-program | Fierce
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SPECTRUM/WIRELESS

AT&T, VERIZON TRY TO PREVENT BAN ON TEXT MESSAGE BLOCKING
[SOURCE: ars technica, AUTHOR: Jon Brodkin]
AT&T, Verizon, and other wireless carriers are urging the Federal Communications Commission to reject a petition that would impose common carrier regulations on text messaging. "Prior express written consent" needed for calls and SMS to cell phones. The FCC in 2015 reclassified both fixed and mobile Internet access as common carrier services under Title II of the Communications Act and used the new classification to impose net neutrality rules that prevent Internet providers from blocking or throttling traffic. Wireless carriers already faced Title II common carrier regulation of mobile voice, but the status of text messaging has remained unsettled, along with the question of whether carriers can block text messages. In August, the FCC was asked by Twilio to declare that text message service must face Title II regulation, raising concerns among mobile carriers. AT&T and Verizon urged the FCC to reject Twilio's petition, and so did CTIA—The Wireless Association, which represents carriers in general. CTIA wrote in a filing that new restrictions could prevent wireless operators from blocking spam. "Twilio frames its Petition as an effort to curb what it calls the 'blocking' and 'throttling' of messaging traffic but in fact, Twilio is asking the Commission to invalidate consumer-protection measures that prevent massive quantities of unlawful and unwanted mobile messaging spam from reaching and harming consumers," CTIA wrote. AT&T and Verizon made similar arguments in their own filings. Sprint and T-Mobile did not write in themselves, but are represented by the CTIA.
benton.org/headlines/att-verizon-try-prevent-ban-text-message-blocking | Ars Technica
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OWNERSHIP

NAB: CHAIRMAN WHEELER SHOWS SHOCKING DISREGARD FOR CONGRESS
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
The National Association of Broadcasters was not happy with Federal Communications Commission Chairman Tom Wheeler's continued support for eliminating the broadcast exclusivity and network nonduplication rules, particularly in the face of concerns by congressional Democrats and Republicans. "Chairman Wheeler’s dismissive rejection of the concerns raised by key congressional leaders over his proposal to eliminate broadcast exclusivity rules represents a shocking disregard for the institution that confirmed him," said NAB spokesman Dennis Wharton. "Exclusive programming rights allow TV stations to serve communities with quality news and entertainment. Unfortunately, [lawmaker] concerns have been ignored by an FCC Chairman who appears to be on a lone crusade against exclusivity."
benton.org/headlines/nab-chairman-wheeler-shows-shocking-disregard-congress | Broadcasting&Cable
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GOVERNMENT & COMMUNICATIONS

BEYOND DISTRUST: HOW AMERICANS VIEW THEIR GOVERNMENT
[SOURCE: Pew Research Center, AUTHOR: ]
A year ahead of the presidential election, the American public is deeply cynical about government, politics and the nation’s elected leaders in a way that has become quite familiar. Currently, just 19 percent say they can trust the government always or most of the time, among the lowest levels in the past half-century. Only 20 percent would describe government programs as being well-run. And elected officials are held in such low regard that 55 percent of the public says “ordinary Americans” would do a better job of solving national problems. Yet at the same time, most Americans have a lengthy to-do list for this object of their frustration: Majorities want the federal government to have a major role in addressing issues ranging from terrorism and disaster response to education and the environment. And most Americans like the way the federal government handles many of these same issues, though they are broadly critical of its handling of others – especially poverty and immigration. A new national survey by Pew Research Center, based on more than 6,000 interviews conducted between August 27 and October 4, 2015, finds that public attitudes about government and politics defy easy categorization. The study builds upon previous reports about the government’s role and performance in 2010 and 1998. The partisan divide over the size and scope of government remains as wide as ever: Support for smaller government endures as a Republican touchstone. Fully 80 percent of Republicans and Republican-leaning independents say they prefer a smaller government with fewer services, compared with just 31 percent of Democrats and Democratic leaners.
benton.org/headlines/beyond-distrust-how-americans-view-their-government | Pew Research Center
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COMPANY NEWS

T-MOBILE'S GUTSY THANKSGIVING DEAL TO GAIN CUSTOMERS IS SPOOKING INVESTORS
[SOURCE: Washington Post, AUTHOR: Brian Fung]
T-Mobile is trying to sweeten the holidays for customers on rival networks, offering Sprint users $200 to switch. That's a per-line offering. And it's not limited to post-paid subscribers, either, which means that folks on prepaid plans and even Sprint's subsidiaries -- Boost and Virgin Mobile -- are eligible for the credit. The latest announcement comes days after T-Mobile said it was giving out three months of free, unlimited data to many of its own customers. The company added that the Sprint deal would be followed by others aimed at AT&T and Verizon. If the gamble works, T-Mobile could finish the year by adding even more new subscribers. But as T-Mobile rolled out the Sprint promotion, its stock fell by more than 2.5 percent. Why is this happening? Analysts say that T-Mobile's decision to offer switchers deep discounts will add to the company's costs at the same time that it needs to maintain its momentum. Investors have long been worried that T-Mobile's strategy is unsustainable in the long run, and they're looking very closely at how much the company makes on each customer. By offering $200 to every Sprint user, T-Mobile will be raising its customer acquisition costs, cutting into those all-important per-customer margins. But it could prove attractive to many consumers.
benton.org/headlines/t-mobiles-gutsy-thanksgiving-deal-gain-customers-spooking-investors | Washington Post
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STORIES FROM ABROAD

GOOGLE HAS SCRUBBED NEARLY HALF ITS 'RIGHT TO BE FORGOTTEN' REQUESTS -- MOSTLY FROM FACEBOOK
[SOURCE: Revere Digital, AUTHOR: Mark Bergen]
Since the European Union ruling in 2014 permitting Europeans to petition Google to remove personal Web content, Google has reviewed more than 1.2 million requests, the search giant reported. It scrubbed 41 percent of them. And the site with the most URLs affected, by far, is Facebook -- a telling but obvious indication that people tend to put most personal information and share news articles on the social media site. Google wiped away 10,220 URLs on Facebook; YouTube and Twitter also ranked in the top 10 sites. Google seems to grant requests from private citizens, yet stand firm on public figures.
benton.org/headlines/google-has-scrubbed-nearly-half-its-right-be-forgotten-requests-mostly-facebook | Revere Digital
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Foreign Intelligence Surveillance Court names five lawyers as public advocates

Jonathan G. Cedarbaum, John D. Cline, Laura Donahue, Amy Jeffress, and Marc Zwillinger will act as outsider public advocates at the Foreign Intelligence Surveillance Court (FISC).

  1. Cedarbaum is veteran of the Department of Justice, having served most recently as the Acting Assistant Attorney General as part of the Office of Legal Counsel in the Obama Administration.
  2. Cline, by contrast, is a criminal defense attorney. According to his own bio, he served as co-counsel in many high-profile government cases, including United States v. Oliver L. North, United States v. Wen Ho Lee, and United States v. I. Lewis "Scooter" Libby.
  3. Laura Donahue is the only sitting academic in the group—she’s currently a professor at Georgetown Law. She has written extensively on national security law, privacy, Executive Order 12333, and the Foreign Intelligence Surveillance Act.
  4. Jeffress is currently a criminal defense lawyer, but she was previously a Justice Department Attaché to the US Embassy in London. There, Jeffress coordinated cooperation between American and British authorities. She is also a former prosecutor with the US Attorney’s Office for the District of Columbia.
  5. Zwillinger is a longstanding privacy advocate. Way back in 2008, he represented Yahoo in its litigation fighting complying with directives under the Protect America Act, the precursor to the FISA Amendments Act. In that case, according to his bio, Zwillinger became the first private lawyer ever to appear before the FISC. More recently, he continues to represent Apple in a federal drug case in New York as the company attempts to resist government pressure to extract data from a seized iPhone.

Obamanet Goes to Court

[Commentary] This week the federal appeals court in Washington considers the legality of the Obama administration’s decision to micromanage the Internet. Obamanet ended 20 glorious years of the Internet as a fount of permissionless innovation. Now judges will decide, in US Telecom Association v. FCC, if anyone can ever again launch a website, app or new product without having to beg a bureaucrat. The Internet needs more innovation and competition, not bureaucrats picking favorites. Regulators seeking “Mother may I?” permission to end freedom on the Internet should be given a quick and final no.

How Obama Unilaterally Chilled Surveillance

[Commentary] How dangerous: Just as the U.S. faces the most diverse threats in its history, the American intelligence community is forced to operate under some of the most restrictive and bureaucratically ambiguous intelligence-gathering policies since its inception more than 60 years ago.

Nothing reflects these self-imposed restrictions better than Presidential Policy Directive 28 (PPD-28). Among its many flaws, PPD-28 requires that, when collecting intelligence on foreign threats, U.S. operatives “must take into account (that) all persons should be treated with dignity and respect, regardless of their nationality or wherever they may reside and that all persons have legitimate privacy interests.” This feel-good provision puts a serious crimp in foreign signals-intelligence collection.

In a crisis-riddled world, the country can’t afford to have the White House micromanaging intelligence collection. Let U.S. intelligence professionals do their job under the traditional oversight provided by the executive, legislative and judicial branches of government. With PPD-28 in place, they can’t do that.

[Shedd was deputy director of the Defense Intelligence Agency from September 2010 to August 2014 and acting director until January 2015]

Focus Turns to Judge Tatel in Latest Appeal of Net Neutrality Rules

As a high-stakes appeal of the government’s network neutrality rule looms, telecommunications companies have found cause to take heart: The same judge who shot down two previous versions of the rule will help decide the latest challenge. But Judge David Tatel’s presence on the three-judge panel for the closely watched Dec. 4 appeal doesn’t necessarily mean the Federal Communications Commission and its high-profile rules are in trouble again, backers of the regulation say. They contend Judge Tatel’s selection could even boost the odds of victory for the FCC.