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  2. April 2016

April 2016

The Charter-Time Warner Merger Would Create a New Internet Giant

Regulators are paving the way for a merger that could create a new Internet giant. The Federal Communications Commission and the Department of Justice are set to approve Charter’s proposed takeover of Time Warner Cable and Bright House Networks, so long as the newly formed company agrees not to impose data caps for seven years. FCC Chairman Tom Wheeler confirmed that he circulated an order recommending that the merger be approved.

In 2015, Comcast withdrew its $45 billion bid to acquire Time Warner Cable when it became clear that regulators were unlikely to approve the deal. Comcast is already the largest broadband provider in the country; the acquisition would only have made it larger and more powerful. Charter’s $78 billion bid, on the other hand, has always been seen as more likely to clear regulatory hurdles. In 2015, research firm Leichtman Research Group estimated that Charter would end up with 18 million subscribers if the merger were approved, placing it ahead of AT&T’s 16 million subscribers but behind Comcast’s 22 million. In other words, it would make Charter considerably more powerful in the market, but it would still have large rivals to keep it in check.

Google to FCC: Privacy Pledge Unnecessary

Google is taking issue with the Federal Communications Commission's proposal to have third parties, like Google, voluntarily adhere to cable-like customer privacy rules in exchange for getting access to cable operator set-top content. That was a quid pro quo proposed in FCC Chairman Tom Wheeler's set-top box "unlocking" proposal, which Google supports. But in comments filed at the FCC, Google said: "Imposing new privacy rules specifically directed to a new generation of devices and applications is unnecessary given the comprehensive scope of the [Federal Trade Commission] Act and state privacy laws."

Despite those FTC and state options, the FCC has had separate customer network proprietary information (CPNI) rules, and still does, on cable's care and handling of customer information like, say, what VOD fare they are paying for. But Google says the FTC, states and private litigants (courts) will make sure that navigation devices will "honor the commitments they make in their privacy policies." "Although limitations on the FCC's jurisdiction under Sec. 629 of the Communications Act prevent it from applying the rules that apply to 'cable operators' and 'satellite carriers' to suppliers of devices, the FCC can work closely with the FTC to ensure that consumers are protected if device providers fail to live up to their privacy obligations."

Commercial Spectrum Enhancement Act (CSEA) Annual Progress Report for 2015

The National Telecommunications and Information Administration submits this report pursuant to Section 207 of the Commercial Spectrum Enhancement Act (CSEA), which requires annual reporting on federal agencies’ progress to relocate wireless communications systems from spectrum or share spectrum that has been reallocated to commercial use. This report provides details on two separate spectrum auctions conducted by the Federal Communications Commission that included: 1) the 1710 to 1755 megahertz (MHz) band, and 2) the 1695-1710 MHz and 1755-1780 MHz bands. This report covers the period from January through December 2015.

Part I of this annual report documents the cumulative progress made by federal agencies to relocate operations out of the 1710-1755 MHz band from March 2007 through December 2015. Part II of this annual report contains a new report — the report documents the agencies’ activities to accommodate commercial use of the 1695-1710 MHz and 1755-1780 MHz bands that were auctioned in 2015. Part II contains slightly different information compared to Part I due to enactment of the Middle Class Tax Relief and Job Creation Act of 2012, that, among other things, modified the SRF provisions in the NTIA Organization Act. Notably, these modifications permit federal agencies to recover costs stemming from their action to enable spectrum to be shared or relocated based on an approved transition plan, as well as permit federal agencies to recover certain pre-auction costs, neither of which was permitted prior to the 2012 Tax Relief Act. Accordingly, Part II reflects transition costs, which include both relocation and sharing costs, as well as separate timelines associated with transitioning federal spectrum use and the expenditure of SRF funds.

Students as Digital Creators

From building learning apps and games to digital design and innovations, schools are increasingly becoming nerve centers for creativity. In a new EdTechNext report, , the Consortium for School Networking (CoSN) examines this transformation in school systems nationwide – and how they are proving beneficial to students and educators.

“Digital creativity is not just an idea. It is a powerful way of learning that is enhancing student engagement and preparing them for their college and career paths in modern, 21st century environments,” said Norton Gusky, Co-Chair, CoSN’s Emerging Technologies Committee. By telling the stories of school systems, the report shows how digital creativity is improving student and family engagement, personalizing learning, expanding opportunities for robust, interdisciplinary learning, and energizing productive collaborations with partners in education and other sectors.

Sen Ted Cruz Takes Aim at Municipal Broadband, Cuba

GOP presidential candidate Sen Ted Cruz (R-TX) wants Congress to block the Federal Communications Commission from preempting state laws related to government provision of Internet access services or loosening communications restrictions on Cuba. That is according to a copy of a raft of proposed amendments to a couple of FCC-related bills being marked up in the Senate Commerce Committee April 27.

On the FCC Process Reform Act, Sen Cruz and Sen Deb Fischer (R-NE) are jointly proposing the amendment to rein the FCC's preemption of state laws limiting municipal broadband buildouts. FCC Chairman Tom Wheeler says those laws are pushed by incumbents to prevent price and service competition. The FCC has stepped in to preempt state laws in Tennessee and North Carolina, and is currently in a court battle over that decision. Sen Cruz's amendment, "prohibits the FCC form preventing states from implementing laws relating to provision of broadband Internet access service by state and local governments."

Sen Cruz is also looking to bulk up the FCC Reauthorization Act of 2016 (S 2644) with a couple of amendments targeted at Administration efforts to ease restrictions on Cuba. The first would overturn the FCC's order removing Cuba from the "exclusion list." Sen Cruz also wants to block the FCC from launching a Cuba-related rulemaking about "certain nondiscrimination requirements relating to Cuba.

FBI Plans to Keep Apple iPhone-Hacking Method Secret

The Federal Bureau of Investigation plans to tell the White House it knows so little about the hacking tool that was used to open a terrorist’s iPhone that it doesn’t make sense to launch an internal government review about whether to share the hacking method with Apple. The decision, and the technical and bureaucratic justification behind it, would likely keep Apple in the dark about whatever security gap exists on certain models of the company’s phones, apparently.

At issue is a hacking tool FBI director James Comey has said cost the government more than $1 million that was used to open the locked iPhone of Syed Rizwan Farook. The agency is preparing to send a formal notification to the White House in the coming days saying that while the agency bought the hacking tool from the third party, officials aren’t familiar with the underlying code that runs it, apparently. Because of that, the FBI plans to tell the White House, its agents aren’t aware of a software vulnerability that should be reported to the Vulnerabilities Equities Process panel, an interagency group that decides whether to notify software makers of security weaknesses, these people said.

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