March 2016

FCC's Lifeline expansion could see changes before vote

Federal Communications Commission member Mignon Clyburn signaled that there could be late changes to the planned overhaul of Lifeline, the FCC’s phone subsidy program for low-income Americans. Commissioner Clyburn said is sympathetic to concerns from the wireless industry and she will help make changes if the regulations do not strike the right balance.

"My office has been inundated with concerns about the call for minimum standards, particularly for mobile voice," she said. "But the strongest part of the FCC's process, one that is the envy of regulators from across the globe, is that our process enables parties to give and receive feedback. If parties believe that the current proposal doesn't strike the right balance, I have been clear from the beginning that I am open to taking appropriate adjustments, and I plan to live up to that promise." Commissioner Clyburn would not say whether she has proposed any specific changes. She said nothing is "set in stone" and noted she is still in "listening mode."

The FCC's plan sets a number of minimum service standards on the speed of Internet and the data allowance of smartphone plans. By December, the FCC will also require Lifeline providers of simple voice-only cellphone service to offer unlimited-minute plans. By 2019, Lifeline will transition completely away from wireless voice-only service. The wireless industry has lobbied hard over the past few weeks against the December change to require unlimited minutes. They argue that the $9.25 per month Lifeline subsidies would not fully cover the price of unlimited plans currently on the market, meaning that some low-income families would not be able to cover the extra cost.

March 23, 2016 (News from the FCC Oversight Hearing)

BENTON'S COMMUNICATIONS-RELATED HEADLINES for WEDNESDAY, MARCH 23, 2016
Today's Events:


FCC OVERSIGHT HEARING
   House Communications Subcommittee Hearing: Oversight of the FCC - press release

INTERNET/BROADBAND
   Seattle Mayor: Municipal broadband too costly; public-private deal is way to go
   FCC Must Preserve Lifeline to the Internet - B&C op-ed
   CenturyLink: 10/1 Mbps broadband requirement is too rigid for Lifeline customers [links to Benton summary]
   US Broadband Speeds Rise: Akamai
   Google Fiber, competition, and affordable broadband for all - Brookings analysis
   Zero rating: a boon to consumers, or a net neutrality nightmare? [links to Brookings]
   Bronwyn Howell: Is more fiber-to-the-home good for Internet health? [links to American Enterprise Institute]

TELECOM
   Special Access Reform: Ten Years in the Making - Public Knowledge [links to Benton summary]

SECURITY & PRIVACY
   Senate proposal on encryption gives judges broad powers
   Clinton: US needs to counter ISIS online
   President Obama is threading the needle with his encryption stance, for good reasons - Quartz analysis [links to Benton summary]
   The iPhone Case and the Future of Civil Liberties - Boston Review op-ed [links to Benton summary]
   Apple's encryption fight is far from over [links to CNNMoney]
   Apple court victory suggests that there may be a gap in iPhone software [links to Wall Street Journal]
   Apple does not pay hackers to find and report bugs, which may explain why a third party has offered to help the government break into an iPhone [links to New York Times]
   Editorial: The question of whether the government can compel Apple to assist it in unlocking its phones remains unanswered [links to New York Times]
   House Leaders Create Encryption Working Group [links to Multichannel News]
   That time when FTC Commissioner Brill fell for an email scam [links to Washington Post]

ELECTIONS & MEDIA
   Donald Trump’s campaign manager says he might sue BuzzFeed for libel. It would be tough to win. [links to Benton summary]

CONTENT
   Streaming music edged out digital downloads for the first time in 2015 [links to Verge, The]
   Streaming Is Officially the Biggest Part of the Music Business [links to Revere Digital]

TELEVISION
   Urban League to FCC: Push 'Pause' on Set-Top Proposal [links to Broadcasting&Cable]
   How Vizio and Google radically reinvented the TV [links to Verge, The]
   TV Usage Falls In February; OTT Grows Overall [links to MediaPost]
   Majority Of TV Consumers Want 'Skinny' Package, Less Than 20 Channels [links to MediaPost]
   Time Warner Cable lowers price of Dodgers channel, hoping to end stalemate [links to Los Angeles Times]

EDUCATION
   Lifelong Learning and Technology - Pew research [links to Benton summary]
   Making Sense of Metadata in Personalized Learning Platforms [links to EdSurge]

HEALTH
   FTC Testifies on Efforts to Protect Privacy and Security of Consumer Health Information [links to Federal Trade Commission]

JOURNALISM
   Why NPR Changed How It Talks About Podcasts [links to Benton summary]

DIVERSITY
   What’s Holding Back Women in Tech? [links to Benton summary]

GOVERNMENT & COMMUNICATIONS
   How feds used Gmail and Facebook to track down two Syrian hackers [links to Verge, The]
   What's Next for 18F? [links to Benton summary]

POLICYMAKERS
   FTC Commissioner Julie Brill to Resign
   Black box: Merrick Garland an unknown quantity on tech issues [links to Benton summary]
   Jerry Ceppos: Grove was a visionary in journalism, as well as technology [links to San Jose Mercury News]

STORIES FROM ABROAD
   Belgian officials urge people to use social media in wake of bombings [links to Washington Post]
   Cuba, Cable TV Dance a New Mambo [links to Multichannel News]

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FCC OVERSIGHT HEARING

HOUSE COMMUNICATIONS SUBCOMMITTEE HEARING: OVERSIGHT OF THE FCC
[SOURCE: House of Representatives Commerce Committee, AUTHOR: ]
The House Communications Subcommittee continued its oversight of the Federal Communications Commission at a hearing. Members examined various issues related to the FCC’s policy decisions and the process by which it reaches them, including FCC process reform, the FCC’s actions regarding set top boxes, and FCC Chairman Tom Wheeler’s proposal to impose new privacy rules on Internet service providers (ISPs). Chairman Greg Walden (R-OR) expressed his disappointment in Chairman Wheeler’s reluctance to adopt an open and transparent process for his proposal to impose privacy rules on ISPs. Commissioner Pai and Commissioner O’Reilly echoed Chairman Walden’s sentiment and expressed concern with the top-down, non-transparent nature of the FCC. Chairman Walden concluded, “This is 2016, this is not 1816, we want an open and transparent process so the public can comment.” During Vice Chairman Bob Latta’s (R-OH) questioning on the FCC’s set-top box proposal, Commissioner Pai categorized the FCC’s proposal as “Back to the future. Instead of moving to an app-based world where consumers can finally free themselves of this expensive, clunky equipment that consumes a lot of energy and doesn’t provide the functionality they want, the FCC’s doubling down on 1990s technology.” House Commerce Committee Chairman Fred Upton (R-MI) stressed the importance of an open and transparent process, stating, “As the Chairman seeks to implement what is likely the final year of his agenda, it is no less important now that matters are addressed through a process that is open and transparent, informed through robust debate, and resolved through bipartisan compromise. It is only through this approach that we can avoid the uncertainty and threat to investment and jobs creation that a flawed process promises to deliver.” Chairman Walden added, “We know the commission has implemented only half of the recommendations of the 2014 FCC Process Reform Working Group. That is why I believe true reforms require changes in law that can transcend any particular chairman or commission. The public deserves no less. Unfortunately, sharp divisions within the commission are widely known. With the rapidly changing communications marketplace, we’ve never needed this independent agency to work together for the public interest more than now.”
benton.org/headlines/house-communications-subcommittee-hearing-oversight-fcc | House of Representatives Commerce Committee | Wheeler Statement | O'Rielly Statement | Rosenworcel Testimony | Pai Testimony | Clyburn Testimony | The Hill | Broadcasting & Cable | Broadcasting & Cable | Broadcasting & Cable | Broadcasting & Cable
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INTERNET/BROADBAND

SEATTLE MAYOR: MUNICIPAL BROADBAND TOO COSTLY; PUBLIC-PRIVATE DEAL IS WAY TO GO
[SOURCE: Seattle Times, AUTHOR: Rachel Lerman]
The best way to expand Internet access in Seattle (WA) is through public-private partnerships, Seattle Mayor Ed Murray said at a regional broadband conference. The mayor reiterated the position he formed after a city-commissioned study released last summer showed it would cost between $480 million and $665 million to build out a municipal-broadband network across the city. That price tag is less than previously estimated, but the mayor said it was still too much to be feasible. “When I came into office, I was very excited about the possibility of municipal broadband until the study came back and indicated it would be literally the largest tax increase in Seattle,” Mayor Murray said. The mayor’s office later clarified that financing a municipal broadband system would result in one of the largest tax increases in the city. The $930 million Move Seattle transportation levy approved by voters last fall may be bigger, depending on the exact cost of municipal broadband.
benton.org/headlines/seattle-mayor-municipal-broadband-too-costly-public-private-deal-way-go | Seattle Times
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FCC MUST PRESERVE LIFELINE TO THE INTERNET
[SOURCE: Broadcasting&Cable, AUTHOR: Michael Winship, Lowell Peterson]
[Commentary] Recently, the Federal Communications Commission put good government on display when FCC Chairman Tom Wheeler announced plans to modify its Lifeline program to include high-speed Internet access to low-income Americans. The Lifeline program was established by the Reagan Administration to ensure low-income households have a landline phone, an essential utility. On March 31, the FCC will vote on the next important upgrade to this nonpartisan program, which received its last upgrade when President George W. Bush expanded it to include wireless services. Times have changed, as have our lifelines. The way we relied on a landline phone in the 1980s is barely comparable to how dependent today’s household is on broadband (high-speed) Internet. A 2015 Pew Broadband Study found that nearly half of all homes with incomes under $30,000 do not have Internet access, even as “Americans—both broadband users and those who do not have broadband—are increasingly likely to view home broadband as a key tool for accessing information that is important to their lives.” High-speed Internet has become the modern world’s lifeline. The members of the Writers Guild of America, East have been vocal supporters of network neutrality, as it ensures the internet remain a level playing field for content creators and the public. Now, the FCC has the opportunity to bridge the gap between those who can instantly access breaking video from almost anywhere in the world and low-income Americans who can’t even open e-mail at home.
[Michael Winship is president of the Writers Guild of America, East and senior writer of Moyers & Company and BillMoyers.com. Lowell Peterson is executive director of the Writers Guild of America, East]
benton.org/headlines/fcc-must-preserve-lifeline-internet | Broadcasting&Cable
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US BROADBAND SPEEDS RISE
[SOURCE: Multichannel News, AUTHOR: JeffBaumgartner]
Though the US still trails many other nations with respect to average broadband speeds, those connections are getting faster, according to Akamai’s State of the Internet Report for Q4 2015. Per Akamai, US average connection speeds in Q4 reached 14.2 Mbps, up 29% year-over-year, while average peak connections speeds hit 61.5 Mbps, up 25%. On a global basis, that put the US at number 14 with respect to average connection speeds, and number 20 for average peak connection speeds. Global average connection speeds in Q4 clocked in at 5.6 Mbps, up 8.6% from the previous quarter, and up 23% year-over-year. South Korea (26.7 Mbps) was tops among individual countries, followed by Sweden (19.1 Mbps), Norway (18.8 Mbps), and Japan (17.4 Mbps). Global average peak connections speeds hit 32.5 Mbps in Q4, up 21% year-over-year, Akamai said. In this category, Singapore (135.7 Mbps) led the way, followed by Hong Kong (105.2 Mbps), South Korea (95.3 Mbps), Macao (83.1 Mbps) and Japan (82.9 Mbps). On a global basis, 7.1% of unique IP addresses connected to Akamai averaged connection speeds of at least 25 Mbps, marking a 74% year-on-year increase. South Korea led all countries with 25 Mbps adoption, at 37%, followed by Sweden (23%), Norway (21%), Latvia (18%) and Japan (17%). The US did not fall into the top 10 in this category, according to Akamai.
benton.org/headlines/us-broadband-speeds-rise-akamai | Multichannel News
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GOOGLE FIBER, COMPETITION, AND AFFORDABLE BROADBAND FOR ALL
[SOURCE: Brookings, AUTHOR: Jack Karsten, Darrell West]
[Commentary] In Feb, Google Fiber, the broadband Internet and TV subsidiary of Alphabet, announced the rollout of free gigabit Internet service for the West Bluff neighborhood in Kansas City (MO). This is the first step in the company’s plan to provide free gigabit service to public housing in all cities where fiber is available through a partnership with the White House’s ConnectHome program. This list currently includes four cities, but with seven cities approved for fiber rollout and another eleven potential fiber cities, it is possible the service could expand rapidly in the near future. Google Fiber’s growth and continued partnership with the Department of Housing and Urban Development have far-reaching implications for the future of the nation’s broadband infrastructure. This partnership raises the subject of how Google Fiber determines which cities will receive access to the service, and what can be done for those outside of the company’s reach. As the fiber expansion map shows, Google Fiber’s focus remains in the Southeast and West. It has been suggested that Google Fiber looks for small cities that have high growth potential, an existing fiber infrastructure, and a local government willing to draft regulations that make entry into the market easier (sometimes with unintended consequences). Google Fiber’s effort to bring free gigabit service to public housing in the cities they serve is a positive step, but affordability barriers will persist until markets beyond Google Fiber’s reach become more competitive.
benton.org/headlines/google-fiber-competition-and-affordable-broadband-all | Brookings
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SECURITY & PRIVACY

SENATE PROPOSAL ON ENCRYPTION GIVES JUDGES BROAD POWERS
[SOURCE: Reuters, AUTHOR: Dustin Volz, Mark Hosenball]
A bipartisan group of Senators has begun circulating long-awaited draft legislation that would give federal judges clear authority to order technology companies like Apple to help law enforcement officials access encrypted data, apparently. The proposal from Senate Intelligence Committee Chairman Richard Burr (R-NC) and Vice Chairman Dianne Feinstein (D-CA) does not spell out how companies must provide access or the circumstances under which they could be ordered to help. It also does not create specific penalties for noncompliance, leaving that determination to judges, apparently. Previous legislative efforts have focused on requiring technology products to have a built-in "back door" for law enforcement. The latest approach would not mandate any specific technology, but rather would require companies to figure out how to access the data. Congress has tried and failed for years to pass legislation that could prevent criminals and spies from "going dark," or hiding from law enforcement by using encrypted computer and communications services. The latest effort died when the Obama Administration signaled last fall that it would not support it. But Apple's high-profile showdown with the government over a federal magistrate judge's order that it unlock an iPhone connected to the mass shooting in San Bernardino (CA) has reopened the debate.
benton.org/headlines/senate-proposal-encryption-gives-judges-broad-powers | Reuters
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CLINTON: US NEEDS TO COUNTER ISIS ONLINE
[SOURCE: The Hill, AUTHOR: Mario Trujillo]
Hillary Clinton urged the United States to do more to counter the Islamic State in Iraq and Syria (ISIS) on social media, hours after the group took responsibility for a deadly terror attack in Brussels. "We've got to take them on on the Internet," said Clinton, the Democratic presidential front-runner. "You can put walls around your country, but you don't keep out the Internet. And that has been a major tool for radicalizing, recruiting, propagandizing that ISIS is quite sophisticated at using." Clinton's statement included a veiled jab at Republican front-runner Donald Trump, who suggested the United States should close up its borders following the coordinated bombings in Brussels that left more than 30 people dead and over 230 wounded. Democratic challenger Sen Bernie Sanders (I-VT) also said the US needs "effective monitoring of social media."
benton.org/headlines/clinton-us-needs-counter-isis-online | Hill, The
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POLICYMAKERS

FTC COMMISSIONER JULIE BRILL TO RESIGN
[SOURCE: Federal Trade Commission, AUTHOR: Press release]
Julie Brill, who has served as a Commissioner of the Federal Trade Commission since April 2010, will resign her position at the end of March to enter private practice. Hogan Lovells announced that Brill will join the firm as a partner and co-director of the Privacy and Cybersecurity practice on April 1. A Democrat, Brill was appointed by President Barack Obama and sworn in on April 6, 2010. Prior to joining the FTC, Commissioner Brill was the Senior Deputy Attorney General and Chief of Consumer Protection and Antitrust for the North Carolina Department of Justice. Before that, she served as an Assistant Attorney General for Consumer Protection and Antitrust for the State of Vermont for over 20 years. At Hogan Lovells, as co-director of the Privacy and Cybersecurity practice, Brill succeeds co-director and founding partner Christopher Wolf, who will transition to a senior status at the firm. She will be joined in leadership with Marcy Wilder, co-director of the Privacy and Cybersecurity practice; Harriet Pearson, leader of the firm’s Cybersecurity Solutions Group and Cyber Risk Services business unit; and Eduardo Ustaran, a partner in the firm’s London office, and leader of the firm’s European data protection practice.
benton.org/headlines/ftc-commissioner-julie-brill-resign | Federal Trade Commission | Hogan Lovells
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