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March 2016

April 1, 2016 (FCC Meeting Recap)

BENTON'S COMMUNICATIONS-RELATED HEADLINES for FRIDAY, APRIL 1, 2016


FCC MEETING
   FCC Modernizes Lifeline Program for the Digital Age
   Reactions to FCC Lifeline Modernization [links to Benton summary]
   FCC delayed Internet subsidy vote amid talk of deal
   FCC Proposes Broadband Consumer Privacy Rules
   Reactions to FCC Broadband Consumer Privacy Rules [links to Benton summary]
   FCC Proposes to Expand Video Description Rules
   FCC Deletion of Consent Agenda Items from March 2016 Open Meeting [links to Benton summary]
   FCC in agreement: Agency can't regulate Netflix

ELECTIONS & MEDIA
   Twenty Years of Media Consolidation Has Not Been Good For Our Democracy - Moyers & Company op-ed
   When Commercialism Trumps Democracy - Victor Pickard HuffPo op-ed
   Why The Major Media Marginalize Bernie - Robert Reich HuffPo op-ed [links to Benton summary]
   Op-Ed: How the Media Lost Control of Campaign Coverage [links to Huffington Post]
   Opinion: Don’t fall for the media distortion about Trump [links to Washington Post]
   Campaign Exposes Fissures Over Issues, Values and How Life Has Changed in the US - Pew research
   Super PACs and Trump’s Wife: How a Photo Dispute Highlights Weakness in Campaign Finance Rules - ProPublica analysis [links to Benton summary]
   Could the Election Be Hacked? [links to Government Technology]
   Trump’s Plan to Make Cyberwar Great Again [links to Benton summary]

SECURITY/PRIVACY
   FBI agrees to unlock iPhone, iPod in Arkansas homicide case
   In FBI hacks, tech firms get left in the dark as feds resist call to divulge secrets [links to Benton summary]
   Spy office denies allegations that NSA data will be used for policing [links to Benton summary]
   President Obama talks cyber with Chinese President Xi Jinping [links to Benton summary]
   Trump’s Plan to Make Cyberwar Great Again [links to Benton summary]

GOVERNMENT & COMMUNICATIONS
   Appeals Court: No stingrays without a warrant, explanation to judge [links to Ars Technica]
   FBI moves to interview Clinton over e-mails [links to Benton summary]

INTERNET/BROADBAND
   To narrow the digital divide, the FCC should not simply extend Lifeline to broadband -AEI White Paper [links to Benton summary]
   Painful Comcast cancellation phone calls targeted by California legislation [links to Benton summary]
   Temkin: Pay TV, ISPs Garner Most Consumer Complaints [links to Benton summary]
   Brotman: Why the US needs its own Get Online Week [links to Brookings]

TELEVISION
   FCC Fines Philadelphia TV Station $89K for Refusing Inspections - press release [links to Benton summary]
   Univision Takes Aim at MFNs in FCC Filing [links to Multichannel News]
   ACA Says Big Programmers Are Distribution Problem [links to Broadcasting&Cable]

CONTENT
   Comcast Eyes Standalone Option for Stream TV Service [links to Multichannel News]

OWNERSHIP
   Byron Allen: Charter-TWC Deal Not Done Yet [links to Benton summary]
   Turner Hopes Investment in Mashable Makes Them Ideal Partners for the Future of TV [links to AdWeek]

WIRELESS/SPECTRUM
   Verizon will soon charge a $20 upgrade fee even if you pay full price for a phone [links to Verge, The]
   Op-Ed: You've Heard of the Internet of Things. There's What Comes Next. [links to nextgov]

ADVERTISING
   Microsoft’s Edge browser is getting built-in ad blocking [links to Verge, The]

COMPANY NEWS
   Opinion: Building Platforms Not Products is the Advantage that Keeps Silicon Valley Ahead [links to Washington Post]

JOURNALISM
   Newsroom Systems Adapt To New Necessities [links to TVNewsCheck]

EDUCATION
   DC parent: How data-obsessed school reform helps drive rising inequality in nation’s capital - WaPo op-ed [links to Benton summary]

STORIES FROM ABROAD
   President Obama talks cyber with Chinese President Xi Jinping [links to Benton summary]

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FCC MEETING

FCC MODERNIZES LIFELINE PROGRAM FOR THE DIGITAL AGE
[SOURCE: Federal Communications Commission, AUTHOR: Press release]
The Federal Communications Commission modernized and reformed its Lifeline program to help low income consumers afford access to the 21st Century’s vital communications network: the Internet. For the first time, Lifeline will support stand-alone broadband service as well as bundled voice and data service packages. To spark competitive service options for Lifeline consumers, the rules will unlock the Lifeline broadband marketplace to attract additional providers. And new service standards will ensure that supported services meet modern needs. The rules significantly strengthen the Commission’s landmark 2012 reforms of the program by establishing an independent National Eligibility Verifier to confirm subscriber eligibility. At the same time the verifier deters waste, fraud and abuse, it will encourage participation by legitimate providers by removing the burden of eligibility screening. Finally, a budget mechanism will limit Lifeline's cost to ratepayers.
benton.org/headlines/fcc-modernizes-lifeline-program-digital-age | Federal Communications Commission | Wheeler Statement | Rosenworcel Statement | New York Times | Los Angeles Times | The Hill | Washington Post | Public Knowledge blog | Broadcasting & Cable
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FCC DELAYED INTERNET SUBSIDY VOTE AMID TALK OF DEAL
[SOURCE: The Hill, AUTHOR: Mario Trujillo]
The Federal Communications Commission vote to offer Internet subsidies to low-income Americans was delayed by at least three hours after Republicans said an emerging deal fell apart. Democratic Commissioner Mignon Clyburn had come to an agreement with the two Republicans on the commission. But the office of Republican Commissioner Ajit Pai said Commissioner Clyburn backed out after intense pressure from FCC Chairman Tom Wheeler in the morning ahead of the vote. Matthew Berry, Commissioner Pai's chief of staff, said that staffers worked through the night to draft the deal. "[Chairman Wheeler] has bullied Commissioner Clyburn into reneging on this deal," Berry said. Commissioner Clyburn said after reevaluating the deal with Republicans, she found it "could not fully achieve my vision." "I applaud the deliberative process and want to thank Commissioners Pai and O’Rielly and their staff for engaging well into the night and morning," Commissioner Clyburn said. House Commerce Committee Republican leadership was not pleased with the collapse the compromised Lifeline proposal that would have capped the subsidy. Apparently, those leaders plan to consider a bill in April to impose a legislative cap on the spending, as well as what they said was protect ratepayers and eliminate waste, fraud and abuse. Those Republican Reps are the same ones who have been critical of FCC process and signaled the compromise's failure was yet another example of that. House Commerce Committee Democratic Reps got wind of the Lifeline compromise that would have created a hard cap on the fund's spending and fired off a letter to Chairman Wheeler urging him to reject a cap."While we have long supported the Lifeline program and the essential assistance that it provides to low-income Americans, we cannot support any action that would severely limit the program."
benton.org/headlines/fcc-delayed-internet-subsidy-vote-amid-talk-deal | Hill, The | Broadcasting & Cable | Multichannel News
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FCC PROPOSES BROADBAND CONSUMER PRIVACY RULES
[SOURCE: Federal Communications Commission, AUTHOR: ]
The Federal Communications Commission adopted a Notice of Proposed Rulemaking (NPRM) that proposes to establish privacy guidelines for broadband Internet Service Providers (ISPs). The proposal is designed to ensure broadband customers have meaningful choice, greater transparency and strong security protections for their personal information collected by ISPs. It proposes rules that would give broadband customers the tools they need to
make informed decisions about how their information is used by their ISPs and whether and for what purposes their ISPs may share their customers’ information with third parties. To provide consumers more control over the use of their personal information – and enforce the broadband provider’s responsibility to safeguard such data – the NPRM separates the use and sharing of information into three categories, and proposes adoption of clear guidance for both ISPs and customers about the transparency, choice and security requirements for customers’ personal information:
Consent Inherent in Customer Decision to Purchase ISP’s Services: Customer data necessary to provide broadband services and for marketing the type of broadband service purchased by a customer – and for certain other purposes consistent with customer expectations, such as contacting public safety – would require no additional customer consent beyond the creation of the customer-ISP relationship.
Opt-out: Broadband providers would be allowed to use customer data for the purposes of marketing other communications-related services and to share customer data with their affiliates that provide communications-related services for the purposes of marketing such services unless the customer affirmatively opts out.
Opt-in: All other uses and sharing of consumer data would require express, affirmative “opt-in” consent from customers.
benton.org/headlines/fcc-proposes-broadband-consumer-privacy-rules | Federal Communications Commission | Wheeler Statement | Clyburn Statement | Rosenworcel Statement | The Hill | TVNewsCheck | Broadcasting&Cable | NPR | USA Today
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FCC PROPOSES TO EXPAND VIDEO DESCRIPTION RULES
[SOURCE: Federal Communications Commission, AUTHOR: Press release]
The Federal Communications Commission adopted a Notice of Proposed Rulemaking (NPRM) that recommends updating its video description rules to expand the availability of -- and consumer access to -- video described programming. Video description makes video programming accessible to individuals who are blind or visually impaired by enabling audio-narration to describe key visual elements of a television program during pauses in the dialogue. Through video description, individuals who are blind or visually impaired can independently enjoy and follow popular television shows. Since their initial adoption, the video description rules have provided substantial benefits to persons who are blind or visually impaired by making television programming more accessible. The NPRM tentatively concludes that these substantial benefits outweigh the costs of the recommended additional requirements. Specifically, the NPRM proposes to:
Increase the required amount of video described programming on each included network carried by a covered broadcast station or multichannel video programming distributor (MVPD) from 50 hours per calendar quarter to 87.5 hours;
Increase the number of networks subject to the video description rules from four broadcast and five non-broadcast networks to five broadcast and ten non-broadcast networks;
Adopt a no-backsliding rule, which would ensure that included networks remain subject to the requirements even if they fall out of the top five or top ten ranking;
Remove the threshold requirement that non-broadcast networks must reach 50 percent of pay-TV households in order to be subject to our video description rules;
Require that covered distributors provide dedicated customer service contacts who can answer questions about video description; and
Require that petitions for exemptions from the video description requirements and related filings be electronically filed with the Commission.
benton.org/headlines/fcc-proposes-expand-video-description-rules | Federal Communications Commission | FCC Item Landing Page | Broadcasting & Cable | TVNewsCheck
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FCC IN AGREEMENT: AGENCY CAN'T REGULATE NETFLIX
[SOURCE: The Hill, AUTHOR: Mario Trujillo]
Federal Communications Commission Chairman Tom Wheeler said Netflix throttling its own video over mobile networks does not violate network neutrality. "It is outside of open Internet. We do not regulate edge providers," FCC Chairman Tom Wheeler said. Recently, it was revealed that Netflix slows the download speed of its streaming video over mobile networks such as Verizon and AT&T. The company said it has taken this action, which degrades video quality, for at least five years in order to help customers stay below their monthly data caps imposed by wireless providers. Observers have said the Netflix's decision not to inform its customers could possibly violate Federal Trade Commission rules. But nearly all the FCC commissioners are in agreement that Netflix is outside the scope of their own agency. "I am in violent agreement with commissioner O'Rielly that this is outside of open Internet," Chairman Wheeler said. The FCC approved strong net neutrality rules in 2015 to make sure Internet service providers do not block, throttle or create paid fast lanes for certain Internet traffic. The regulations are meant to protect customers and Web companies like Netflix that create content. Because of that, the rules only apply to Internet service providers like Comcast or Verizon that haul Internet traffic between users.
benton.org/headlines/fcc-agreement-agency-cant-regulate-netflix | Hill, The
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ELECTIONS & MEDIA

TWENTY YEARS OF MEDIA CONSOLIDATION NOT GOOD FOR DEMOCRACY
[SOURCE: Moyers & Company, AUTHOR: Michael Corcoran]
[Commentary] Wall Street’s sinister influence on the political process has, rightly, been a major topic during this presidential campaign. But history has taught us that the role that the media industry plays in Washington poses a comparable threat to our democracy. Yet this is a topic rarely discussed by the dominant media, or on the campaign trail. But now is a good time to discuss our growing media crises. Twenty years ago last month, President Bill Clinton signed the Telecommunications Act of 1996. The act, signed into law on February 8, 1996, was “essentially bought and paid for by corporate media lobbies,” as Fairness and Accuracy in Reporting (FAIR) described it, and radically “opened the floodgates on mergers.” The negative impact of the law cannot be overstated.The act dramatically reduced important Federal Communications Commission (FCC) regulations on cross ownership, and allowed giant corporations to buy up thousands of media outlets across the country, increasing their monopoly on the flow of information in the United States and around the world. Twenty years later the devastating impact of the legislation is undeniable: About 90 percent of the country’s major media companies are owned by six corporations. This issue has not been central in the 2016 presidential election. But it is deeply concerning that, of all the presidential candidates running in 2016, the Big Media lobby has chosen to back Hillary Clinton. Media industry giants have donated way more to her than any other candidate in the race, according to data from the Center for Responsive Politics. In light of this, we must be mindful of the media reform challenges we face in the present, as we try to prevent the type of damage to our democracy that was caused by the passing of this unfortunate law.
[Michael Corcoran is a journalist based in Boston]
benton.org/headlines/twenty-years-media-consolidation-has-not-been-good-our-democracy | Moyers & Company
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WHEN COMMERCIALISM TRUMPS DEMOCRACY
[SOURCE: Huffington Post, AUTHOR: Victor Pickard]
[Commentary] Donald Trump’s ascendance has many enablers, but news media deserve special scrutiny. Television news in particular has popularized Trump — and, in doing so, has turned our political process into a reality TV spectacle. Even when attacking, news media are boosting his visibility. And even as he attacks them — threatening to change libel laws, mocking and feuding with journalists, holding campaign events where members of the press are corralled and roughed up — he serves media well. Because the news organizations that cover Trump are making obscene amounts of money. This symbiotic relationship has gained some recent attention, even “media culpas,” from the press. The New York Times reported that Trump has received nearly $2 billion in free media coverage since he began his campaign. And a study on newsworthiness tallied that during 2015, Trump received 327 minutes of nightly broadcast network news coverage, compared with Hillary Clinton’s 121 minutes and Bernie Sanders’ 20 minutes. Much popular media criticism decries specific journalists or news organizations’ individual failures. But this suggests that the problem lies with only a few bad apples. Rarely do we consider the underlying structural reasons for why our media system operates as it does. This is not to imply there’s a cabal of media owners who meet in smoky backrooms to plot the manipulation of the masses. Rather, we can better understand the “trumpification of the media“ by focusing on the commercial logic that drives it. This draws attention to the root of the problem: the commercial pressures and profit imperatives that encourage particular types of news coverage.
[Victor Pickard is an Associate Professor at the University of Pennsylvania’s Annenberg School for Communication]
benton.org/headlines/when-commercialism-trumps-democracy | Huffington Post
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CAMPAIGN EXPOSES FISSURES OVER ISSUES
[SOURCE: Pew Research Center, AUTHOR: ]
The 2016 presidential campaign has exposed deep disagreements between – and within – the two parties on a range of major policy issues. But these divisions go well beyond the issues and extend to fundamentally different visions of the way that life in the United States has changed. Overall, 46% of registered voters say that life in America today is worse than it was 50 years ago “for people like them,” while 34% say life is better and 14% think it is about the same. Republican and Republican-leaning voters are more than twice as likely as Democratic voters to say life in this country has gotten worse over the past half-century for people like them (66% to 28%). Among GOP voters, fully 75% of those who support Donald Trump for the Republican presidential nomination say life for people like them has gotten worse, compared with 63% of Sen Ted Cruz (R-TX) supporters and 54% of those who back Gov John Kasich (R-OH). While Democratic voters generally express more positive views of how life in the US has changed over the past 50 years, those who favor Sen Bernie Sanders (I-VT) are more negative (34% say life has gotten worse) than those who support Hillary Clinton (22%). The major issues that have emerged in the presidential campaign reveal divisions within the two parties in different ways. But for the most part, the gaps are much wider among Republican voters than among Democrats, especially when it comes to opinions about immigrants and immigration policy, government scrutiny of Muslims in the United States, and abortion and other social issues. As they were in January, registered voters are generally skeptical that any of the presidential candidates would make a good president.
benton.org/headlines/campaign-exposes-fissures-over-issues-values-and-how-life-has-changed-us | Pew Research Center | Pew
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SECURITY/PRIVACY

FBI AGREES TO UNLOCK IPHONE, IPOD IN ARKANSAS HOMICIDE CASE
[SOURCE: Associated Press, AUTHOR: Claudia Lauer]
The FBI agreed to help an Arkansas prosecutor unlock an iPhone and iPod belonging to two teenagers accused of killing a couple, just days after the federal agency announced it had gained access to an iPhone linked to the gunman in a mass shooting in California. Faulkner County Prosecuting Attorney Cody Hiland said the FBI agreed to the request from his office and the Conway Police Department on March 30. A judge on March 29 agreed to postpone the trial of 18-year-old Hunter Drexler so prosecutors could ask the FBI for help. The FBI announced that it had gained access to an iPhone belonging to Syed Farook, who died with his wife in a gun battle with police after they killed 14 people in San Bernardino (CA) in December. The FBI hasn't revealed how it cracked Farook's iPhone. Authorities also haven't said whether the iPhone and iPod in the Arkansas case are the same models or whether the FBI will use the same method to try to get into the devices. Hiland said he could not discuss details of the murder case in Arkansas, but confirmed the FBI had agreed less than a day after the initial request. The move indicates the FBI may be able to use a recently discovered vulnerability to widely access secure iPhones in police custody.
benton.org/headlines/fbi-agrees-unlock-iphone-ipod-arkansas-homicide-case | Associated Press | The Hill
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FCC Modernizes Lifeline Program for the Digital Age

The Federal Communications Commission modernized and reformed its Lifeline program to help low income consumers afford access to the 21st Century’s vital communications network: the Internet. For the first time, Lifeline will support stand-alone broadband service as well as bundled voice and data service packages.

To spark competitive service options for Lifeline consumers, the rules will unlock the Lifeline broadband marketplace to attract additional providers. And new service standards will ensure that supported services meet modern needs. The rules significantly strengthen the Commission’s landmark 2012 reforms of the program by establishing an independent National Eligibility Verifier to confirm subscriber eligibility. At the same time the verifier deters waste, fraud and abuse, it will encourage participation by legitimate providers by removing the burden of eligibility screening. Finally, a budget mechanism will limit Lifeline's cost to ratepayers.

Reactions to FCC Lifeline Modernization

The Federal Communications Commission modernized and reformed its Lifeline program to help low income consumers afford access to the 21st Century’s vital communications network: the Internet. For the first time, Lifeline will support stand-alone broadband service as well as bundled voice and data service packages.

The Benton Foundation released the following statement: "The Federal Communications Commission voted today to modernize its Lifeline program, refocusing it on bringing affordable broadband to millions of low-income Americans. This marks the largest commitment ever to address the number one barrier to broadband adoption: cost. And it will fulfill for generations a promise that dates back to 1934: to make available to all people of the United States, a worldwide telecommunications service at reasonable charges. Although there has been great progress extending broadband’s reach to more and more Americans, there remain too many households and communities that are not enjoying the benefits of broadband. We call these places Digital Deserts. Research shows, for example, that families earning under $25,000 a year are about half as likely to have the Internet at home as families that are the most well-off. The FCC’s reforms adopted today will reduce administrative burdens so more providers will participate and compete for new subscribers. This competition will create new options for broadband subscribers. Adding a National Eligibility Verifier also advances the fight against fraud, waste and abuse of the program. But most importantly, today’s decision means Lifeline subsidies will bring all the many benefits of reliable Internet access to low-income households. That means better access to job listings and workforce training, to education and healthcare, and allows people to fully engage in today’s society. Bringing broadband to these people is like bringing water to a desert. The FCC’s irrigation will transform deserts to oases of opportunity. Congress, in 1996, directed the FCC to ensure all Americans have affordable access to the Internet. Today, the FCC makes good on that promise. FCC Chairman Tom Wheeler and Commissioners Mignon Clyburn and Jessica Rosenworcel have led the way on Lifeline reform. The Benton Foundation commends their leadership. Benton will continue to work with the Commission as the Lifeline order is implemented and we look forward to helping the FCC build a robust digital inclusion plan."

Sari Feldman, president of the American Library Association: “Broadband is essential to full participation in today’s digital age, and the American Library Association (ALA) commends the Commission for including broadband support as part of a modernized Lifeline program. With affordable, high-quality broadband access at the library, at school, and now within reach for millions more people at home, the Commission continues to fulfill its universal service mission."

Sarah Morris, senior counsel and director of Open Internet Policy at the Open Technology Institute of the New America Foundation: "Cost of access is a tremendous, documented barrier to broadband adoption. By modernizing the Lifeline program to support broadband, the FCC is taking a critical step to ensure that a our country's most vulnerable households have affordable access to a vital service that many of us take for granted."

Phillip Berenbroick, counsel for government affairs at Public Knowledge: "Chairman Wheeler’s Lifeline modernization proposal is a critical step toward making broadband affordable for all Americans. Access to broadband Internet service has become a necessity in modern America. We use broadband to communicate with loved ones, connect to education and health care, and to participate in our democracy and the global economy. Chairman Wheeler’s proposal will help close the digital divide and connect low-income Americans to the essential communications medium of the 21st century.we use broadband to communicate with loved ones, connect to education and health care, and to participate in our democracy and the global economy. Chairman Wheeler’s proposal will help close the digital divide and connect low-income Americans to the essential communications medium of the 21st century."

Matt Wood, Free Press Policy Director: “We welcome the FCC’s efforts to bring Lifeline fully into the modern era. The agency is taking aim at the digital divide with today’s decision. Broadband adoption continues to lag for low-income Americans, for people in communities of color, for the elderly and for poorer families with children. Implementing the agency’s originally proposed changes will help the FCC’s ongoing efforts to close these gaps. Today’s decision was possible only because of the tireless advocacy of leaders like Chairman Wheeler, Commissioner Clyburn and Commissioner Rosenworcel — and even more importantly, the eloquence and determination of grassroots leaders and Lifeline recipients who came to Washington and spoke out for change."

Chris Shelton, president of Communications Workers of America: “This subsidy is an important step toward ensuring that all Americans can share in the benefits that broadband access provides. We applaud the leadership of Chairman Tom Wheeler and Commissioners Mignon Clyburn and Jessica Rosenworcel in moving forward to help close the digital divide."

Cheryl Leanza, advisor at United Church of Christ: “The vote to modernize Lifeline and to provide the first nationwide subsidy for low-income household access to broadband service will make a huge difference in the lives of tens of millions of families. United Church of Christ's media justice ministry and its partners in the Leadership Conference on Civil and Human Rights have been asking for the Lifeline program to subsidize broadband access since 2010."

Mark Stanley Demand Progress director of operations and communications: “In just the past week, over 15,000 Demand Progress members signed a petition calling on the FCC to modernize the Lifeline program. Expanding access to broadband is a crucial step in diminishing the inequality created by the digital divide, which poses a direct threat to our democracy and economy.”

James Steyer, founder of Common Sense Media: “The FCC has helped to advance our understanding that access to high-speed Internet is not a luxury, it is a necessity. Adults need it to apply for jobs, upgrade their skills, access government services, and fully participate in our Democracy. And children and teens need it to complete their schoolwork, explore ideas and learn online, and seek answers about their health."

Wade Henderson of The Leadership Conference on Civil and Human Rights: "By voting to bring the Lifeline program into the 21st century, the FCC will be taking a crucial step in narrowing our country’s digital divide and ensuring that all Americans have access to the essential communications services they need to live, learn, and work in today’s digital age."

AT&T SVP of federal regulatory Bob Quinn: “Notwithstanding the controversy that occurred over the Lifeline action at today’s meeting, positive steps were taken to move Lifeline into the 21st century by beginning the transition of the program from voice to broadband. The agency also started the process of removing carriers from determining whether or not consumers are eligible to receive the benefits of Lifeline service. The administrative reforms contemplated by today’s action will enable service providers to focus on better serving the participants in the program. We appreciated that the agency took the time to engage with stakeholders to understand the industry’s issues that exist in the current program."

Todd O’Boyle, program director at Common Cause: “Broadband connectivity is essential to full participation in society, but for too long, low-income households have been forced to rely on spotty connectivity at fast food restaurants and coffee shops. Thanks to today’s vote, more families will have access to the greatest engine for economic, educational, and civic opportunity ever created. Kudos to the majority at the FCC.”

FCC delayed Internet subsidy vote amid talk of deal

The Federal Communications Commission vote to offer Internet subsidies to low-income Americans was delayed by at least three hours after Republicans said an emerging deal fell apart. Democratic Commissioner Mignon Clyburn had come to an agreement with the two Republicans on the commission. But the office of Republican Commissioner Ajit Pai said Commissioner Clyburn backed out after intense pressure from FCC Chairman Tom Wheeler in the morning ahead of the vote. Matthew Berry, Commissioner Pai's chief of staff, said that staffers worked through the night to draft the deal. "[Chairman Wheeler] has bullied Commissioner Clyburn into reneging on this deal," Berry said. Commissioner Clyburn said after reevaluating the deal with Republicans, she found it "could not fully achieve my vision." "I applaud the deliberative process and want to thank Commissioners Pai and O’Rielly and their staff for engaging well into the night and morning," Commissioner Clyburn said.

House Commerce Committee Republican leadership was not pleased with the collapse the compromised Lifeline proposal that would have capped the subsidy. Apparently, those leaders plan to consider a bill in April to impose a legislative cap on the spending, as well as what they said was protect ratepayers and eliminate waste, fraud and abuse. Those Republican Reps are the same ones who have been critical of FCC process and signaled the compromise's failure was yet another example of that. House Commerce Committee Democratic Reps got wind of the Lifeline compromise that would have created a hard cap on the fund's spending and fired off a letter to Chairman Wheeler urging him to reject a cap."While we have long supported the Lifeline program and the essential assistance that it provides to low-income Americans, we cannot support any action that would severely limit the program."

FCC Proposes Broadband Consumer Privacy Rules

The Federal Communications Commission adopted a Notice of Proposed Rulemaking (NPRM) that proposes to establish privacy guidelines for broadband Internet Service Providers (ISPs). The proposal is designed to ensure broadband customers have meaningful choice, greater transparency and strong security protections for their personal information collected by ISPs.

It proposes rules that would give broadband customers the tools they need to
make informed decisions about how their information is used by their ISPs and whether and for what purposes their ISPs may share their customers’ information with third parties. To provide consumers more control over the use of their personal information – and enforce the broadband provider’s responsibility to safeguard such data – the NPRM separates the use and sharing of information into three categories, and proposes adoption of clear guidance for both ISPs and customers about the transparency, choice and security requirements for customers’ personal information:

Consent Inherent in Customer Decision to Purchase ISP’s Services: Customer data necessary to provide broadband services and for marketing the type of broadband service purchased by a customer – and for certain other purposes consistent with customer expectations, such as contacting public safety – would require no additional customer consent beyond the creation of the customer-ISP relationship.
Opt-out: Broadband providers would be allowed to use customer data for the purposes of marketing other communications-related services and to share customer data with their affiliates that provide communications-related services for the purposes of marketing such services unless the customer affirmatively opts out.
Opt-in: All other uses and sharing of consumer data would require express, affirmative “opt-in” consent from customers.

Reactions to FCC Broadband Consumer Privacy Rules

The Federal Communications Commission adopted a Notice of Proposed Rulemaking (NPRM) that proposes to establish privacy guidelines for broadband Internet Service Providers (ISPs). The proposal is designed to ensure broadband customers have meaningful choice, greater transparency and strong security protections for their personal information collected by ISPs.

The Benton Foundation released the following statement: "We welcome the FCC's exploration of privacy protections for broadband consumers. Year after year, privacy concerns have been cited by digital inclusion experts as a barrier to robust broadband adoption. Unsophisticated consumers are most vulnerable to problems caused by a lack of strong and clear privacy protections. Benton looks forward to engaging in a robust public dialogue on broadband privacy led by the FCC."

Meredith Rose, Public Knowledge: "Broadband service providers occupy a unique position in the Internet ecosystem. As gatekeepers to the Internet, they have, by their very nature, access to every bit of data that their customers send and receive online. And, as they move aggressively into advertising markets, they have every incentive to exploit their access to this data and remove all consumer agency in determining where and for what purpose their personal data is used. Without clear guidelines on how this data can be used, consumers face a very real threat of having personal data exposed, sold to third parties without their knowledge, or misused in other fashions. The FCC has rightly recognized the duty ISPs have to protect their customers’ privacy. The law is clear, and the FCC must adopt the strong protections obligated by Section 222 of the Communications Act. Consumers face real privacy harms from their ISPs. Earlier this month, the FCC levied a $1.3 million fine against Verizon over the company’s secret tracking of its customers. Other ISPs have programs that repackage and sell their users’ browsing histories to online marketers, even as most of their customers remain in the dark about what’s being done with their data."

Free Press policy counsel Gaurav Laroia: "The FCC is asking the right questions in its call for comments. An effective framework must consider the issues of pay-for-privacy, deep-packet inspection, upselling services, competition and data security. Chairman Wheeler deserves credit for acknowledging the role that ISPs have as the gatekeepers to the Internet. By virtue of their position, ISPs have near-unfettered access to our Internet traffic, allowing them to build comprehensive profiles of their users by surveilling the websites they visit and tracking the services they use online. This is why Congress directed the FCC to take special care in protecting against use of this information without users’ affirmative consent.”

Linda Sherry, director of national priorities for Consumer Action: “The FCC plan is consistent with privacy rules that have long applied to phone providers. Under law, your phone company can’t sell or share information with third parties about your phone activity without your consent. The notice of proposed rulemaking released today would require Internet providers to meet similar consumer privacy standards.”

National Cable & Telecommunications Association: "Today’s FCC action unfortunately mistakes a good headline for actual headway in advancing consistent standards of privacy protection and fair competition. Under the FCC's proposal, ISPs would have far more onerous requirements than the ones imposed on other large online entities that have access to a wider range of user information than ISPs. Recently, a cross-section of the broadband industry put forward a technology-neutral privacy framework guided by principles of transparency, data security, and consumer choice. In contrast, today’s FCC proposal will only lead to greater consumer confusion about how their online data is protected, rather than furthering an approach grounded in greater consistency and fairness among all Internet participants. As broadband providers long committed to protecting the privacy of our customers, we hope that a more considered review of the facts and the potential negative consequences of its proposal will convince the Commission to move in a different direction.”

Comcast Senior EVP David Cohen: "The unfortunate result of the FCC’s extreme regulatory proposals will be more consumer confusion and less competition – and a bunch of collateral damage to innovation and investment along the way. This is most disappointing because it is entirely avoidable, since the Administration, the Federal Trade Commission, and others have examined this issue and marketplace for many years and have reached very different conclusions."

Berin Szoka, President of TechFreedom: "The FCC has invented a privacy crisis, then exploited that crisis to claim vast new powers.”

Adonis Hoffman, chairman of Business in the Public Interest and former chief of staff to commissioner Mignon Clyburn: "To be sure, privacy is a societal concern, but the FCC's proposal is a solution in search of a problem. First of all, the Federal Trade Commission (FTC) should remain the principal privacy enforcer. They have the expertise, institutional knowledge and experiential insight to handle the range of privacy issues sure to arise… The other troubling part of the FCC plan is that it leaves the real privacy perpetrators outside the reach of the rule. Google, which collects and houses more data than all ISPs combined, should be covered, but it is not.[The] NPRM misses the elephant in the room and shifts the burden to ISPs who are junior players in the data collection game. This is yet another unintended consequence spawned by Title II regulation."

USTelecom president Walter McCormick: “While we support the effort to ensure strong consumer privacy protections, rules should be consistent across the broadband economy," he said. "Today’s proposal falls short by espousing tentative conclusions that are not in sync with the framework that has applied for years and is incorporated into a proposal presented to the commission by USTelecom and other major trade associations. The FCC’s proposed tentative conclusions, if adopted, will create a morass of regulations in the Internet privacy space and fail to provide a platform allowing consumers to count on privacy rules that are evenly applied across the Internet economy. We urge the commission to take the time to consider the systems at work in the larger Internet ecosystem that have supported so much innovation, and implement rules that are consistent with the Federal Trade Commission’s longstanding and effective approach to privacy that has applied across the Internet, including to broadband providers, for years.”

Larry Irving, former head of the National Telecommunications & Information Administration: "In today’s decision, the FCC starts on a path toward imposing new privacy requirements on broadband Internet Service Providers. At first glance, this rulemaking appears to advance consumer privacy interests on the Internet. Yet, on closer analysis, it may actually lead to greater consumer confusion," he said. "The Commission’s action will require it to create a new set of principles, regulations and interpretations, and will likely lead to increased litigation. It would have been better for the FCC to embrace the FTC’s existing effective and successful unified Internet privacy framework."

Free State Foundation President Randolph May: "[T]his is just one more instance of the Obama Administration's FCC seemingly relishing the opportunity to impose, without any sound justification, harsher, costlier regulations on Internet service providers than on Internet content providers like Google. The FCC's imposition of a sweeping opt-in requirement for ISPs that doesn't apply to big Internet content providers distorts competition. And in the end, the likely result of this bureaucratic overreach is that the nation's consumers will be harmed by a reduction in relevant information that will be made available to them."

FCC Proposes to Expand Video Description Rules

The Federal Communications Commission adopted a Notice of Proposed Rulemaking (NPRM) that recommends updating its video description rules to expand the availability of -- and consumer access to -- video described programming. Video description makes video programming accessible to individuals who are blind or visually impaired by enabling audio-narration to describe key visual elements of a television program during pauses in the dialogue. Through video description, individuals who are blind or visually impaired can independently enjoy and follow popular television shows. Since their initial adoption, the video description rules have provided substantial benefits to persons who are blind or visually impaired by making television programming more accessible. The NPRM tentatively concludes that these substantial benefits outweigh the costs of the recommended additional requirements. Specifically, the NPRM proposes to:

  • Increase the required amount of video described programming on each included network carried by a covered broadcast station or multichannel video programming distributor (MVPD) from 50 hours per calendar quarter to 87.5 hours;
  • Increase the number of networks subject to the video description rules from four broadcast and five non-broadcast networks to five broadcast and ten non-broadcast networks;
  • Adopt a no-backsliding rule, which would ensure that included networks remain subject to the requirements even if they fall out of the top five or top ten ranking;
  • Remove the threshold requirement that non-broadcast networks must reach 50 percent of pay-TV households in order to be subject to our video description rules;
  • Require that covered distributors provide dedicated customer service contacts who can answer questions about video description; and
  • Require that petitions for exemptions from the video description requirements and related filings be electronically filed with the Commission.

FCC Deletion of Consent Agenda Items from March 2016 Open Meeting

The Federal Communications Commission adopted the following items:
Application for a Minor Change to the Facilities of Station WJKN(AM), Jackson (MI); and, Application for a Minor Change to the Facilities of Station KTGG(AM), Okemos (MI): The Commission will consider a Memorandum Opinion and Order concerning an Application for Review filed by Christian Family Network’s seeking review of a Media Bureau dismissal of CFN’s informal objection.

Applications of Powell Meredith Communications Co. and Community Translator Network, LLC for Consent to Assign Construction Permits, K262CM, Needles (CA), et al: The Commission will consider a Memorandum Opinion and Order concerning an Application for Review filed by Amy Meredith, president of Powell Meredith Communications Company seeking review of a Media Bureau Decision.

Comparative Consideration of Two Groups of Mutually Exclusive Applications for Permits to Construct New Noncommercial Educational FM Stations: The Commission will consider a Memorandum Opinion and Order which addresses two groups of mutually exclusive applications for new NCE FM station construction permits.

Christian Family Network, Inc. Application for Reinstatement and Renewal of License of Station DWOLY(AM), Battle Creek (MI), and, Request for Special Temporary Authority to Operate Station DWOLY(AM), Battle Creek (MI): The Commission will consider a Memorandum Opinion and Order concerning an Application for Review filed by Christian Family Network, Inc. contesting a Media Bureau dismissal and termination of the operating authority of DWOLY(AM).

FCC in agreement: Agency can't regulate Netflix

Federal Communications Commission Chairman Tom Wheeler said Netflix throttling its own video over mobile networks does not violate network neutrality. "It is outside of open Internet. We do not regulate edge providers," FCC Chairman Tom Wheeler said.

Recently, it was revealed that Netflix slows the download speed of its streaming video over mobile networks such as Verizon and AT&T. The company said it has taken this action, which degrades video quality, for at least five years in order to help customers stay below their monthly data caps imposed by wireless providers. Observers have said the Netflix's decision not to inform its customers could possibly violate Federal Trade Commission rules. But nearly all the FCC commissioners are in agreement that Netflix is outside the scope of their own agency. "I am in violent agreement with commissioner O'Rielly that this is outside of open Internet," Chairman Wheeler said. The FCC approved strong net neutrality rules in 2015 to make sure Internet service providers do not block, throttle or create paid fast lanes for certain Internet traffic. The regulations are meant to protect customers and Web companies like Netflix that create content. Because of that, the rules only apply to Internet service providers like Comcast or Verizon that haul Internet traffic between users.

FBI moves to interview Clinton over e-mails

Hillary Clinton and her top aides might be questioned by FBI officials about her private e-mail server within the next few days. The FBI has concluded its examination of Clinton's email server and is in a “critical stage” of its investigation into concerns that the former secretary of State or her top aides mishandled classified information. The FBI is reportedly seeking to interview her along with her former chief of staff, Cheryl Mills, and ex-spokesman Philippe Reines. The probe could be completed “in weeks not months,” the report added, citing unnamed law enforcement officials. The report also says that Justice Department prosecutors have joined the FBI's investigative team. The news furthers speculation that the federal investigation is nearing a conclusion, nearly a year after it began.

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