March 2016

FCC Vote Brings Broadband to Digital Deserts

Earlier today, the Federal Communications Commission voted to modernize its Lifeline program. The FCC order will update the Reagan-era telephone subsidy program and refocus it on making broadband service affordable for low-income Americans. The following may be attributed to Benton Foundation Executive Director Adrianne B. Furniss and Policy Director Amina Fazlullah:

March 31, 2016 (Lifeline Modernization Vote Today)

BENTON'S COMMUNICATIONS-RELATED HEADLINES for THURSDAY, MARCH 31, 2016
Today's Events:
FCC Open Meeting: https://www.benton.org/node/233045
Decoding the Encryption Dilemma, ITIF: https://www.benton.org/node/235436

INTERNET/BROADBAND
   FCC Moves to Expand Rural Broadband Deployment by Modernizing and Reforming Universal Service Support for Small Carriers - public notice
   Lifeline vote could help millions of poor families get online [links to CNNMoney]
   Charter Backs FCC Lifeline Reform [links to Benton summary]
   Governors urge FCC to oppose federal phone subsidy overhaul [links to Benton summary]
   Consumer Action Slams Netflix Over Slowing Speeds [links to Benton summary]
   Netflix throttling shows net neutrality on life support - USAToday analysis [links to Benton summary]
   You can soon get unlimited data on AT&T U-verse — but it comes with a big catch [links to Benton summary]
   On getting broadband done from Institute for Local Self Reliance and US Internet [links to Blandin Foundation]
   Internet Association Endorses the Trans-Pacific Partnership - press release

SECURITY/PRIVACY
   63 Times the Feds Asked Apple and Google to Help Unlock Phones
   White House: San Bernardino iPhone hack doesn't endanger privacy [links to Benton summary]
   1,000 locked devices in limbo after FBI quits iPhone case [links to Benton summary]
   The FBI unlocked a terrorist’s iPhone, but we still need to talk about encryption - WaPo editorial [links to Benton summary]
   The Other Reason the FBI Doesn't Want to Reveal Its Hacking Techniques - Vice analysis [links to Benton summary]
   Activist Group Fight for the Future: FBI Should Share Hack Info With Apple [links to Multichannel News]
   Analysis: How Apple, FBI can both claim victory [links to USAToday]
   FBI Is Pushing Back Against Judge's Order to Reveal Tor Browser Exploit [links to Vice]
   Idea to retire: Cybersecurity kills innovation - Brookings op-ed [links to Benton summary]

EMERGENCY COMMUNICATIONS
   Multilingual Emergency Alert System Order - public notice

WIRELESS/SPECTRUM
   NTIA Calls for Applications to Commerce Spectrum Management Advisory Committee - public notice
   AT&T asks FCC for more time to deploy smart grid services with Nokia in WCS C, D Block spectrum [links to Benton summary]

ADVERTISING
   AOL’s Tim Armstrong Aims to Build Digital-Ad Empire at Verizon
   NBCUniversal Will Combine Its Cable, NBC and Telemundo Upfront Presentations [links to AdWeek]

RADIO
   AM Revitalization Springs Forward - FCC blog

TELEVISION
   Comcast Defends Most Favored Nation Clauses in FCC Video Access Inquiry [links to Benton summary]
   Programmers Wary Of FCC's Set-Top Plan - analysis [links to Benton summary]
   Time Warner Cable sweetens deal again for Dodgers TV channel -- and still no takers [links to Los Angeles Times]
   Report: Nearly 800 UHD Satellite Channels on the Way [links to Broadcasting&Cable]
   TV Viewing Up 7%, comScore Report Says [links to Broadcasting&Cable]
   Live TV Loses to Digital Among Millennials, Study Says [links to Hollywood Wrap]
   Top 10 Media Trends According to comScore [links to Broadcasting&Cable]
   CommLawBlog: Amber Waives of Grain? FCC OK’s TVWS Down on the Farm [links to CommLawBlog]

CONTENT
   Facebook’s Live Video Effort Entices Media Companies [links to New York Times]
   Like Netflix, but With YouTube Stars: Fullscreen Readies Its Subscription Service [links to Revere Digital]
   Deal between Apple, Major League Baseball makes tablets, strategy apps available to coaches [links to Wall Street Journal]
   A Short Guide to Year Six of ‘Oracle America, Inc. v. Google, Inc’ [links to Vice]

OWNERSHIP
   Judge shaves $2 million off sale price for Orange County Register owner [links to Los Angeles Times]

TELECOM
   Wells Fargo Bank settles lawsuit over recorded phone calls [links to Associated Press]

GOVERNMENT & COMMUNICATIONS
   Remarks by Commerce Deputy Sec Bruce Andrews at the Strata + Hadoop Conference - speech [links to Benton summary]
   Digital disruption on the Potomac - The Hill op-ed [links to Benton summary]
   Office of Management and Budget Draft Policy Slashing Mobile Contracts [links to nextgov]
   Why a no-indictment for Hillary Clinton would still be a problem for America [links to Washington Post]
   Op-Ed: Policy czars already have too much power. Trump would make that worse. [links to Washington Post]

ELECTIONS & MEDIA
   What a Donald Trump presidency would mean for Hollywood [links to Benton summary]
   Female media figures call for Trump to fire Lewandowski [links to Politico]
   It’s totally wrong to say the media hasn’t done its job on Donald Trump [links to Washington Post]

JOURNALISM
   President Obama a press champion? If only - Rem Reider, USAToday [links to Benton summary]

LABOR
   Silicon Valley subcontracting makes income inequality worse, report finds [links to Benton summary]

DIVERSITY
   The influence and limitations of Black Twitter - Columbia Journalism Review
   Apple, Google CEOs sign letter condemning North Carolina LGBT law [links to Benton summary]
   Interview with Jennifer Pozner: Media Critic, Author, Anti-Racist Feminist [links to Huffington Post]

STORIES FROM ABROAD
   UK plans to track all Internet connections could cost £1billion, campaigners warn [links to Guardian, The]

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INTERNET/BROADBAND

FCC REFORMS HIGH COST PROGRAM FOR RATE-OF-RETURN CARRIERS
[SOURCE: Federal Communications Commission, AUTHOR: Public notice]
Taking further steps to expand rural broadband deployment, the Federal Communications Commission unanimously approved modernization and reform of its universal service program supporting the nation’s small rural carriers, known as “rate-of-return” carriers. Providing approximately $20 billion in support over the next 10 years, modernizations of the universal service program for high-cost areas include enabling rate-of-return providers to meet consumer demand for stand-alone broadband. Reforms include better targeting of support to communities that need it the most. Broadband is critical in the 21st Century, providing consumers with access to jobs, education and information, facilitating civic engagement, connecting local business and industry to global markets and more. Since the FCC’s universal service reforms of 2011, rate-of-return carriers have made substantial progress expanding broadband deployment, expanding their reach by 45%. But roughly 20 percent of all homes in rate-of-return areas still lack access to terrestrial fixed broadband meeting the FCC’s benchmarks for the high-cost program. Efficient, effective universal service support is critical to the expansion of affordable broadband in high-cost rate-of return areas that currently lack service.
Following are the key elements of the item adopted by the Commission:
Modernizes Existing Universal Service Program for Rate-of-Return Carriers
Creates Two Paths to a “Connect America Fund” for Rate-of-Return Carriers
Increase Fiscal Responsibility in the Universal Service Fund
benton.org/headlines/fcc-moves-expand-rural-broadband-deployment-modernizing-and-reforming-universal-service | Federal Communications Commission | Press release | Wheeler Statement | Clyburn Statement | Rosenworcel Statement | Pai Statement | O'Rielly Statement
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INTERNET ASSOCIATION ENDORSES TPP
[SOURCE: Internet Association, AUTHOR: Michael Beckerman]
The Internet industry is encouraged that the Trans-Pacific Partnership recognizes the Internet as an essential American export, and supports the agreement’s passage. Historically, pro-Internet policies have been absent from trade agreements, which is why the TPP is an important step forward for the Internet sector that accounts for 6 percent of the GDP and nearly 3 million American jobs. The TPP requires countries to allow the transfer of information across borders and prohibits requirements to use inefficient, localized computing facilities. The TPP also acknowledges the benefits of the full scope of copyright law – requiring countries to adopt innovation-critical limitations and exceptions as well as safe harbors that protect the basic functionality of the Internet, social media, and online platforms. For too long, US trade agreements have failed to reflect the balance of US copyright law under which individual creators, right holders, Internet platforms and users have all benefitted. The TPP is a move in the right direction. Finally, the TPP promotes a more inclusive trade economy by supporting the ability of small businesses to use the Internet to serve customers and users in key markets. It will be critical that the TPP is implemented in a way that supports the Internet economy. The Internet industry is committed to working with US trade officials and Congress to ensure that future trade negotiations build upon this framework and reflect the priorities of all stakeholders, including a rapidly growing Internet sector.
benton.org/headlines/internet-association-endorses-trans-pacific-partnership | Internet Association | The Hill
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SECURITY/PRIVACY

63 TIMES THE FEDS ASKED APPLE AND GOOGLE TO HELP UNLOCK PHONES
[SOURCE: Vice, AUTHOR: Jason Koebler]
The idea that the FBI only cared about unlocking just one iPhone in its recently-abandoned legal battle with Apple was always fiction: The American Civil Liberties Union has discovered at least 63 court orders in 22 states in which the federal government invoked the All Writs Act to compel Apple or Google to help it access data on a password-protected phone in a criminal investigation. The cases run the gamut from minor drug charges to child pornography and involve many different agencies within the Department of Justice, including the FBI, the Secret Service, the Department of Homeland Security, the Drug Enforcement Agency, and the Bureau of Alcohol, Tobacco, and Firearms. In addition, there’s at least one case brought by the Bureau of Land Management, in relation to an alleged marijuana grow operation. None of the cases are believed to have required Apple or Google to write new software that could have broken the security of other phones, which was a key component of the San Bernardino (CA) case. That the government has asked Apple for assistance in getting into iPhones is no surprise, but seeing the documents gives further clarity on what, specifically, it’s asking for. It’s also the first confirmation that the government has brought an All Writs Act case against Google. “These cases show that the government has an interest in getting this kind of assistance from tech companies in a wide variety of cases,” ACLU attorney Esha Bhandari said. “The government and law enforcement in general have an interest in using the All Writs Act in a wide variety of investigations, including criminal investigations.”
benton.org/headlines/63-times-feds-asked-apple-and-google-help-unlock-phones | Vice | ars technica
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EMERGENCY COMMUNICATIONS

MULTILINGUAL EMERGENCY ALERT SYSTEM ORDER
[SOURCE: Federal Communications Commission, AUTHOR: Public notice]
In this Order we reaffirm our commitment to promoting the delivery of Emergency Alert System (EAS) alerts to as wide an audience as technically feasible, including to those who communicate in a language other than English or may have a limited understanding of the English language. Specifically, to promote and better understand the landscape of multilingual alerting across the country we will now require State EAS Plans to include a description of the manner, if any, in which EAS Participants (including broadcasters, cable systems, and other service providers), make available EAS alert message content to persons who communicate in languages other than English. We will require EAS Participants to furnish such information to State Emergency Communications Committees (SECC) upon SECC request so that the SECCs can compile this data and submit it as part of their State EAS Plan.
benton.org/headlines/multilingual-emergency-alert-system-order | Federal Communications Commission | O'Rielly Statement
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WIRELESS/SPECTRUM

NTIA CALLS FOR APPLICATIONS TO COMMERCE SPECTRUM MANAGEMENT ADVISORY COMMITTEE
[SOURCE: National Telecommunications and Information Administration, AUTHOR: ]
The National Telecommunications and Information Administration (NTIA) is seeking applications from persons interested in serving on the Department of Commerce Spectrum Management Advisory Committee (CSMAC or committee) for two-year terms. The CSMAC provides advice to the Assistant Secretary for Communications and Information and NTIA Administrator on spectrum policy matters. The CSMAC advises the Assistant Secretary of Commerce for Communications and Information on a broad range of issues regarding spectrum policy. In particular, the current charter provides that the committee will provide advice and recommendations on needed reforms to domestic spectrum policies and management in order to: License radio frequencies in a way that maximizes their public benefit; keep wireless networks as open to innovation as possible; and make wireless services available to all Americans. Applications must be postmarked or electronically transmitted on or before May 13, 2016.
benton.org/headlines/ntia-calls-applications-commerce-spectrum-management-advisory-committee | National Telecommunications and Information Administration | Broadcasting&Cable
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ADVERTISING

AOL'S EXEC AIMS TO BUILD DIGITAL-AD EMPIRE AT VERIZON
[SOURCE: Wall Street Journal, AUTHOR: Mike Shields, Ryan Knutson]
When AOL Chief Executive Tim Armstrong was in Las Vegas (NV) in January for the tech industry’s big trade show, he met a parade of ad buyers in the private suites of the Aria and Cosmopolitan hotels. It was his first real chance to pitch the way AOL—fresh off its sale to Verizon Communications —planned to become a credible threat to Facebook and Google, the juggernauts of digital advertising. “Data is the oil of the mobile economy,” the 45-year-old Armstrong said at one meeting, apparently. Imagine, he said, if a hotel chain supplied Verizon with a database of its frequent guests. That could be matched up with data on Verizon’s more than 100 million wireless customers, plus AOL’s own data, to target guests with ads for promotional offers. Later, the hotel’s sales data and the telecom giant’s customer data could be cross-referenced to see how many of those people subsequently visited the hotel. AOL won’t have that capability until later in 2016, but it reflects Armstrong’s lofty ambitions. He told the advertisers in Las Vegas that he aims to build the top mobile-media company in the world by 2020, one that reaches two billion users, up from a current 700 million, and generates $10 billion to $20 billion in revenue, said a person familiar with the meetings.
benton.org/headlines/aols-tim-armstrong-aims-build-digital-ad-empire-verizon | Wall Street Journal
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RADIO

AM REVITALIZATION SPRINGS FORWARD
[SOURCE: Federal Communications Commission, AUTHOR: FCC Media Bureau Chief Bill Lake]
In October 2015, the Federal Communications Commission took the first steps in over a quarter-century to revitalize the AM broadcast service. AM radio has traditionally been the backbone of the broadcast service, and has time and again kept the public entertained and informed, as well as serving a vital role in times of emergency, disaster and severe weather. The Commission’s goal is to assist AM broadcasters in the face of increasing technical challenges to their service, such as interference from electronic devices. I am happy to report that those efforts have borne fruit, and that AM broadcasters are reaping the benefits of the Commission’s actions in the AM Revitalization proceeding. To date, over 600 applications to relocate FM translators for AM rebroadcast use have been filed since the window opened on January 29, 2016. Audio Division staff have already granted 80 percent of those applications, and will continue to process these quickly to provide relief to the AM broadcaster applicants.
benton.org/headlines/am-revitalization-springs-forward | Federal Communications Commission
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DIVERSITY

THE INFLUENCE AND LIMITATIONS OF BLACK TWITTER
[SOURCE: Columbia Journalism Review, AUTHOR: Katie Ferguson]
[Commentary] For certain journalists, the age-old combination of breakfast and a newspaper doesn’t cut it any more. “I don’t know any black reporter who, the first thing in the morning, doesn’t check Black Twitter,” Jamilah King, a senior writer at Mic, said at a February conference on the topic. That term, as many by now know, unofficially refers to a sprawling network of African American Twitter users that has emerged as a serious media force in recent years. It has been a consistent megaphone for news and reactions to police killings, while hashtag campaigns such as #BlackLivesMatter and #OscarsSoWhite have led to wide-ranging public discussions on race and privilege. Users have not only highlighted a large, previously overlooked audience for coverage of issues affecting black communities, but also new talent for media organizations to recruit. “Before Black Twitter’s rise, the coverage of African American culture and related news issues was up to the discretion of the individual publisher, and the audience really had to wait for a reporter to pay attention,” says Mark S. Luckie, head of journalism and media at Reddit and curator of the Today in Black Twitter feed. Users “are calling attention to the news organizations—who are finding stories that they might not have otherwise—and they are creating content that they know readers are interested in.” But this influence, firmly established as Twitter marked its 10th birthday this month, has simultaneously highlighted the limitations of this online community. Namely: It remains unlikely that Black Twitter alone can continue evolving to fill the same social role as the black press. African-American media, whose power was traditionally centered in print newspapers and magazines, has continued to decline despite a handful of digital newcomers springing up. While Black Twitter may aid in fulfilling the black press’ broader historical function, some argue that it can only do so in a supporting role.
benton.org/headlines/influence-and-limitations-black-twitter | Columbia Journalism Review
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FCC Moves to Expand Rural Broadband Deployment by Modernizing and Reforming Universal Service Support for Small Carriers

Taking further steps to expand rural broadband deployment, the Federal Communications Commission unanimously approved modernization and reform of its universal service program supporting the nation’s small rural carriers, known as “rate-of-return” carriers. Providing approximately $20 billion in support over the next 10 years, modernizations of the universal service program for high-cost areas include enabling rate-of-return providers to meet consumer demand for stand-alone broadband.

Reforms include better targeting of support to communities that need it the most. Broadband is critical in the 21st Century, providing consumers with access to jobs, education and information, facilitating civic engagement, connecting local business and industry to global markets and more. Since the FCC’s universal service reforms of 2011, rate-of-return carriers have made substantial progress expanding broadband deployment, expanding their reach by 45%. But roughly 20 percent of all homes in rate-of-return areas still lack access to terrestrial fixed broadband meeting the FCC’s benchmarks for the high-cost program. Efficient, effective universal service support is critical to the expansion of affordable broadband in high-cost rate-of return areas that currently lack service. Following are the key elements of the item adopted by the Commission:

  • Modernizes Existing Universal Service Program for Rate-of-Return Carriers
  • Creates Two Paths to a “Connect America Fund” for Rate-of-Return Carriers
  • Increase Fiscal Responsibility in the Universal Service Fund

Charter Backs FCC Lifeline Reform

Charter signaled March 30 that he is squarely behind Federal Communications Commission Chairman Tom Wheeler's proposal to reform Lifeline subsidies. Charter, which is awaiting its hoped-for FCC approval of the merger with Time Warner Cable, announced as part of that proposed deal that it would offer a new low cost broadband service for low income consumers if the deal is approved.

Lifeline is the subsidy for advanced telecommunications to low-income residents that the FCC is migrating from traditional phone to broadband service. A vote on that proposal is scheduled for March 31. "From the outset of the proceeding, the FCC actively engaged with potential participants to identify what changes they could make to the program to foster greater participation by providers like Charter." Charter blogged March 29. Those include getting cable operators out of the business of verifying eligibility and streamlining the process for participation. Charter said it looked forward to the final order, but in the meantime was "optimistic" that there would be more providers, including cable companies, able to participate.

White House: San Bernardino iPhone hack doesn't endanger privacy

The FBI’s success in hacking the San Bernardino (CA) shooter’s iPhone should not make Americans worry that their broader privacy is in danger, the White House said. “The reason they should be confident in that privacy is because there are laws on the books that are assiduously followed…that protect the privacy of the American people,” White House press secretary Josh Earnest said. Privacy can be assured, he added, “even as we undertake the necessary actions to protect our national security.”

Silicon Valley subcontracting makes income inequality worse, report finds

Subcontracted jobs have grown at three times the rate of all private sector jobs in Silicon Valley over the past 24 years, exacerbating the region’s gaping income inequality, according to a new report from the University of California, Santa Cruz.

The tech firms whose campuses dominate Silicon Valley are known to employ armies of subcontracted employees as janitors, cafeteria workers, gardeners, security guards and shuttle drivers. Researchers found that growth in subcontracted industries has outpaced overall job growth since 1990 – 54% compared with 18%. That rise is “contributing” to income inequality, the report says, because subcontractors earn less money, have less access to healthcare, and are more likely to be black or Latino than their directly employed counterparts. “This report shows that the rise in subcontracting has made the hi-tech sector a weak engine for middle-class job creation,” said Ben Field of the South Bay Labor Council, a coalition of unions. “Additionally, it shows that the few good jobs tech does create go disproportionately to white men."

Multilingual Emergency Alert System Order

In this Order we reaffirm our commitment to promoting the delivery of Emergency Alert System (EAS) alerts to as wide an audience as technically feasible, including to those who communicate in a language other than English or may have a limited understanding of the English language. Specifically, to promote and better understand the landscape of multilingual alerting across the country we will now require State EAS Plans to include a description of the manner, if any, in which EAS Participants (including broadcasters, cable systems, and other service providers), make available EAS alert message content to persons who communicate in languages other than English. We will require EAS Participants to furnish such information to State Emergency Communications Committees (SECC) upon SECC request so that the SECCs can compile this data and submit it as part of their State EAS Plan.

AM Revitalization Springs Forward

In October 2015, the Federal Communications Commission took the first steps in over a quarter-century to revitalize the AM broadcast service. AM radio has traditionally been the backbone of the broadcast service, and has time and again kept the public entertained and informed, as well as serving a vital role in times of emergency, disaster and severe weather. The Commission’s goal is to assist AM broadcasters in the face of increasing technical challenges to their service, such as interference from electronic devices. I am happy to report that those efforts have borne fruit, and that AM broadcasters are reaping the benefits of the Commission’s actions in the AM Revitalization proceeding.

To date, over 600 applications to relocate FM translators for AM rebroadcast use have been filed since the window opened on January 29, 2016. Audio Division staff have already granted 80 percent of those applications, and will continue to process these quickly to provide relief to the AM broadcaster applicants.