February 2016

February 10, 2016 (The Budget)

BENTON'S COMMUNICATIONS-RELATED HEADLINES for WEDNESDAY, FEBRUARY 10, 2016

New America will host a discussion on the Administration's cybersecurity priorities tomorrow – see https://www.benton.org/calendar/2016-02-11

BUDGET
   President Obama seeks 35 percent hike in federal cyber budget to boost defense
   The President’s National Cybersecurity Plan: What You Need to Know - White House press release
   Here's How Obama's Cybersecurity Plan Could Affect You [links to Fast Company]
   President Obama signs two executive orders on cybersecurity [links to Benton summary]
   White House budget would fund computer science, other tech priorities
   Federal Communications Commission Budget In Brief [links to Benton summary]
   ALA disappointed at White House budget cut to state grants to libraries [links to American Library Association]
   Budget Has Level Funding for Noncommercial Broadcasting [links to Broadcasting&Cable]
   Budget Contains Familiar Spectrum User Fee [links to Multichannel News]
   FTC Submits Fiscal Year 2017 Budget Request, Performance Plan, and Fiscal Year 2015 Performance Report to Congress [links to Federal Trade Commission]
   Fact Sheet: FY 2017 U.S. Department of Commerce Budget [links to Department of Commerce]
   President Obama's 2017 Budget Seeks to Expand Educational Opportunity for All Students [links to Department of Education]
   BBG 2017 Budget Request Prioritizes Key Audiences And New Technologies [links to Broadcasting Board of Governors]

INTERNET/BROADBAND
   NTIA Updates BTOP Results
   FCC’s Connect America Fund to pump millions into faster broadband connections in rural Wisconsin [links to Milwaukee Journal Sentinel]
   Permanent Internet Tax Freedom Act has made it to a glide path to passage [links to Broadcasting&Cable]
   The 1934 Act Regulates Telecommunications letter to the WSJ editor [links to Benton summary]
   Richard Bennett: The legacy of Barlow’s cyberspace declaration of independence [links to American Enterprise Institute]

WIRELESS/SPECTRUM
   Chairman Thune Signals Return of MOBILE NOW Act
   Five Ideas for the Road to 5G - speech
   What a world with 5G will look like [links to Benton summary]
   India's New Open Internet Law Is Stronger Than the United States' [links to Benton summary]
   Venture capital and other investment firms are surprise players in the government’s historic auction of airwaves [links to Benton summary]
   AT&T asks FCC to enforce expired roaming rates with iWireless [links to Fierce]

PRIVACY/SECURITY
   GCHQ Director: One Warrant Can Be Used to Hack a Whole Intelligence Agency [links to Benton summary]
   Privacy Policies More Readable, But Still Hard to Understand [links to Benton summary]
   Intelligence chief warns of threats from AI [links to Hill, The]
   Hacker Publishes Personal Info of 20,000 FBI Agents [links to Vice]
   House bill would block states on encryption legislation [links to Hill, The]
   Jeffrey Eisenach: Leading from behind on cybersecurity [links to American Enterprise Institute]
   Google, Twitter and other tech firms face growing pressure around online safety [links to Benton summary]

TELECOM ACT
   The '96 Act and the Internet: The Myth of the Consensus Light-Touch - Blair Levin op-ed
   Telecom Act At 20: Forgotten Origin Story For Facebook, Google, Netflix? - Howard Homonoff op-ed [links to Benton summary]

TELECOM
   RUS Seeks Comment on Information Collection for Telecom Loans and Guarantees [links to Department of Agriculture]

RADIO
   Remarks of FCC Commissioner Michael O'Rielly at the Country Radio Seminar 2016 - speech [links to Benton summary]

TELEVISION
   Appeal Court will hear TV joint sales case on April 19 [links to Broadcasting&Cable]
   Third-party cable boxes won’t be allowed to spy on you (too much), FCC vows [links to Washington Post]
   Watch FCC Chairman Wheeler gripe about his own cable experience [links to Washington Post]
   Disney Says Skinny Bundles Are Hurting ESPN and Will Save ESPN [links to Revere Digital]

CONTENT
   Why Silicon Valley is reconsidering its growth formula [links to Verge, The]
   TV Producers May Start Making You Wait for New Shows Online [links to Associated Press]

GOVERNMENT & COMMUNICATIONS
   Estimate puts congressional spending on tech at $288 Million [links to Benton summary]

ELECTIONS & MEDIA
   Chuck Todd says journalists acted like ‘snobs’ in dismissing Donald Trump. He has a point. [links to Washington Post]
   Donald Trump Uses Word Media Can’t Repeat [links to Vox]

COURTS
   Judge tosses proposed class action accusing Google of CAPTCHA fraud [links to Ars Technica]

DIVERSITY
   Women Had Just One Third of Speaking Roles in 2015 Movies, Study Shows [links to Benton summary]

AGENDA
   FTC Announces Schedule for Reviewing Regulations [links to Federal Trade Commission]

STORIES FROM ABROAD
   Credibility Of Russian Media Lacking In Baltic Nations [links to Broadcasting Board of Governors]
   Marc Andreessen Offends India Defending Facebook’s Free Basics [links to Revere Digital]

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BUDGET

PRESIDENT OBAMA SEEKS 35 PERCENT HIKE IN FEDERAL CYBER BUDGET TO BOOST DEFENSE
[SOURCE: Washington Post, AUTHOR: Ellen Nakashima]
President Barack Obama is seeking a 35 percent hike in cybersecurity funding in his final budget to boost the capability of the federal government to defend itself against cyberattacks. The proposed $19 billion request, which represents one of the largest increases ever sought in this area, comes as Congress and the public have witnessed an alarming series of intrusions in recent years against targets ranging from Target and Sony to the Pentagon and the Office of Personnel Management. The proposal, announced Feb 9 with the President’s 2017 budget request, is part of a larger package of initiatives the White House is calling the cybersecurity national action plan. “[The plan] is intended to go after the underlying causes of our cybersecurity challenges, not at the symptoms,” said Michael Daniel, the White House cybersecurity coordinator. The money would go toward replacing aging — in some cases decades-old — computer systems with new machines and software, hiring additional skilled personnel, and increasing capabilities at the Pentagon’s Cyber Command and the FBI as well as in civilian agencies such as OPM and the Department of Veterans Affairs, officials said. Some portion of the money will go to the classified cyber budget for intelligence agencies such as the National Security Agency and the CIA, they said. About $3.1 billion of the pot will go to modernizing computer systems and to hire a new federal chief information security officer to direct these changes across the government.
benton.org/headlines/president-obama-seeks-35-percent-hike-federal-cyber-budget-boost-defense | Washington Post | nextgov
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THE PRESIDENT'S NATIONAL CYBERSECURITY PLAN
[SOURCE: The White House, AUTHOR: Michael Daniel, Tony Scott, Ed Felten]
President Barack Obama has worked for more than seven years to aggressively and comprehensively confront the challenge of malicious cyber activity. So Feb 9, he is directing the Administration to implement a Cybersecurity National Action Plan (CNAP) -- the capstone of our national cybersecurity efforts. CNAP puts in place a long-term strategy to ensure the federal government, the private sector, and American citizens can take better control of our digital security. Here’s a brief look at what it does:
Establishes a Commission on Enhancing National Cybersecurity that will bring top strategic, business, and technical thinkers from outside the government to make critical recommendations on how we can use new technical solutions and best practices to protect our privacy and public safety.
Transforms how the government will manage cybersecurity through the proposal of a $3.1 billion Information Technology Modernization Fund and a new Federal Chief Information Security Officer to help retire, replace, and modernize legacy IT across the government.
Empowers Americans to secure their online accounts by using additional security tools – like multi-factor authentication and other identity processing steps – and by working with Google, Facebook, DropBox, Microsoft, Visa, PayPal, and Venmo to secure online accounts and financial transactions.
Invests more than $19 billion for cybersecurity as part of the President’s budget – a more than 35 percent increase from 2015’s request to secure our nation in the future.
benton.org/headlines/presidents-national-cybersecurity-plan-what-you-need-know | White House, The | WH Fact Sheet | Executive Order | Executive Order
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WH BUDGET WOULD FUND COMPUTER SCIENCE, OTHER TECH PRIORITIES
[SOURCE: The Hill, AUTHOR: Mario Trujillo]
President Barack Obama’s $4 billion plan to help fund computer science classes in schools calls for $40 million in funding in 2017, with yearly spending quickly escalating for the next five years. The Computer Science for All plan, unveiled in Jan, calls for federal funding for states to offer coding classes for students in kindergarten through high school. Funding for the program was included in President Obama's overall $4.1 trillion budget proposal released Feb 9. The aim is to train a quarter million teachers, upgrade infrastructure and provide online courses. It would rely partly on partnerships with private industry. In 2018, President Obama’s budget calls for mandatory funding for the program to rise to $720 million. Spending would increase above $1 billion in each 2019 and 2020. Spending would be $660 million in 2021 and $280 million in 2022. The program also calls for $100 million is discretionary funding for schools to expand computer science classes for girls and minorities. The budget also calls for funding for 25 agencies to develop digital service teams, which are meant to place tech talent throughout the government. The budget also factors in an estimated $5 billion in savings over the next decade by having the Federal Communications Commission enact spectrum license user fees and allowing the FCC to auction satellite services.
benton.org/headlines/white-house-budget-would-fund-computer-science-other-tech-priorities | Hill, The | Washington Post
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INTERNET/BROADBAND

NTIA UPDATES $4B BROADBAND STIMULUS PROGRAM RESULTS
[SOURCE: telecompetitor, AUTHOR: Joan Engebretson]
The Broadband Technology Opportunities Program (BTOP) is winding towards a close, according to the latest quarterly update from National Telecommunications & Information Administration, which highlights broadband stimulus program results. The report dated October 2015 but only released publicly during the week of Feb 1, provides a summary of what the BTOP program had accomplished as of June 2015. In 2009 and 2010, the National Telecommunications and Information Administration (NTIA), which administered the BTOP program, awarded approximately $4 billion to 233 BTOP projects. Those projects focused on four areas:
$3.5 billion to 123 infrastructure projects (primarily middle-mile)
$251 million to 44 sustainable broadband adoption (SBA) programs
$201 million to 66 public computing center (PCC) projects
The NTIA also was responsible for awarding $293 million to 56 state broadband initiative (SBI) projects, which were focused on collecting information for the National Broadband Map.
benton.org/headlines/ntia-updates-4-billion-broadband-stimulus-program-results | telecompetitor
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WIRELESS/SPECTRUM

CHAIRMAN THUNE SIGNALS RETURN OF MOBILE NOW ACT
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
Senate Commerce Committee Chairman John Thune (R-SD) says that, in concert with Ranking Member Bill Nelson (D-FL), he is putting the finishing touches on his bill to boost development of 5G wireless broadband service at potentially multiple-gigabit speeds in competition to cable broadband. Speaking at a CTIA 5G conference, Chairman Thune said that he has been working on a new draft of the MOBILE NOW (Making Opportunities for Broadband Investment and Limiting Excessive and Needless Obstacles to Wireless) Act, which he hoped to be able to introduce later during the week of Feb 8. The bill has been in the works for a while but was pulled from a planned markup last fall. He said the bill would "insure that hundreds of megahertz of spectrum would be made available for commercial use by 2020," which he pointed out was about the same time the 5G standard could be rolled out. He said the bill would "cut through much of the bureaucratic red tape that makes it difficult to build wireless facilities on federal properties." It would also "direct the Federal Communications Commission to streamline regulations affecting small-cell networks." Chairman Thune said that perhaps most importantly, the bill would push the FCC to examine millimeter wave (high-frequency bands) to determine which are most useful for 5G. He said those would be the most critical for delivering the multi-gigabit high speed broadband service.
benton.org/headlines/chairman-thune-signals-return-mobile-now-act | Broadcasting&Cable
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FIVE IDEAS FOR THE ROAD TO 5G
[SOURCE: Federal Communications Commission, AUTHOR: FCC Commissioner Jessica Rosenworcel]
Here are my five ideas for the road to 5G:
1) To find spectrum for next generation networks we need to look high: the 5G future will look different [from 4G]—very different. We will need to bust through the old 3 GHz ceiling and create new possibilities for millimeter wave spectrum—in the airwaves at 24 GHz and above. This is spectrum that is way, way up there.
2) When we look high for new spectrum, we cannot forget that we also need to look low: while we explore the big possibilities of millimeter wave, we need to continue to look for opportunities
below 3 GHz.
3) To build a bigger wireless future, we need to focus as much on the ground as on the skies: We can begin by taking a comprehensive look at tower siting practices and make them
more consistent across the country.
4) If we want a bold wireless future, we need a better way to manage our balance sheets: When auction values are not right, relocation costs are wrong, or assumptions are built into the baseline that don’t reflect what is happening—we have a problem.
5) We need sandboxes for cities—and more experimental licenses: 5G technology will have applications everywhere—in rural areas, urban areas, and everything in between. But these applications hold special promise in our cities. That’s because 5G will bring high speed, low latency technology to densely populated areas, opening up a whole new range of civic and commercial services.
benton.org/headlines/five-ideas-road-5g | Federal Communications Commission
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TELECOM ACT

THE ’96 ACT AND THE INTERNET: THE MYTH OF THE CONSENSUS LIGHT-TOUCH
[SOURCE: Federal Communications Law Journal, AUTHOR: Blair Levin]
[Commentary] Many hold the common but mistaken view that the successful Clintonera telecommunications/Internet policies reflected a bipartisan consensus that light-touch regulation was all that was necessary for the Internet to thrive. True, communications policy was more bipartisan in those days. That derived, however, not from a lack of controversy but from how that era’s
great policy divide—between Local and the Long-Distance Phone Companies—had advocates on both sides of the aisle. The bigger error, however, lies in the myth that all the Internet needed
was the benign neglect of the government. A more accurate assessment is that the nascent Internet needed government assistance, just as did the nascent broadcast industry (with spectrum allocations and various protections for local broadcasters), the nascent cable industry (with mandated access to broadcast programming and pole attachment rights), and the nascent direct broadcast satellite industry (with spectrum and cable program access rights) all required in their early stages.
[Blair Levin is a nonresident senior fellow with the Metropolitan Policy Program at the Brookings Institution]
benton.org/headlines/96-act-and-internet-myth-consensus-light-touch | Federal Communications Law Journal
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Telecom Act At 20: Forgotten Origin Story For Facebook, Google, Netflix?

[Commentary] Former Vice President Al Gore got a bum rap for claiming to have invented the Internet (he never did). Yet ironically, when today we legitimately wonder whether government can do much of anything right, the passage twenty years ago of the Telecommunications Act of 1996 actually did help to lay the foundation for the extraordinary digital innovation in the last twenty years. It wasn’t democratic socialism, but a far more pragmatic brand of legislating that made it happen.

Fundamentally, the Act shifted the center of gravity in federal communications policy from a 60-year history of monopoly-based regulation to one based on the need for competition. The Act permitted competition in the cable business and the telephone business, in both local and long-distance (yes, kids, that was actually a thing at one time). It defined the nascent broadband access business as a lighter touch information-type service rather than an old-fashioned telephone service. You can label this investment as driven by fear of competition, greed or vision, but it wouldn’t have happened in a pre-Telecom Act world. And the U.S. shift to a pro-competition model led much of the world to follow suit, according to Larry Irving, the Assistant Secretary of Commerce in the Clinton Administration (and my former colleague at the House Telecommunications and Finance Subcommittee). That created not just a U.S. but a global infrastructure to facilitate the digital innovation to come.

[Homonoff is a Senior Vice President and member of the leadership team at MediaLink]

The 1934 Act Regulates Telecommunications

[Commentary] In “‘Economics-Free’ Obamanet”, Gordon Crovitz trots out the same old and tired arguments of network neutrality opponents: that the net neutrality rules apply 19th-century regulations to 21st-century technologies. The Communications Act of 1934’s prescriptions on “unreasonable” discrimination of services by communications providers are appropriately applicable to Internet service providers because they are the gatekeepers of the information highway. Those who truly know the industry understand this.

Telecommunications are “communications” under the 1934 act regardless of whether they use wired or wireless facilities, or engage digital or analog technologies. To conclude otherwise would be equal to saying only concrete roads but not macadam roads are subject to various construction requirements, or that only jet aircraft must meet air-worthiness standards. Objective and reasonable people will immediately realize the weakness, and more important, the danger of such arguments.