BENTON'S COMMUNICATIONS-RELATED HEADLINES for TUESDAY, APRIL 26, 2016
Today's Event: Open Internet Webinar, Davis Wright Tremaine: https://www.benton.org/node/239194
OWNERSHIP
Justice Department Allows Charter's Acquisition of Time Warner Cable and Bright House Networks - press release
FCC Chairman Statement on Charter/Time Warner Cable/Bright House Networks Merger
The FCC just signaled war against data caps - analysis
With Clock Ticking, New York City Officials Still Worried About Cablevision Deal
Gannett offers $815 million to buy Tribune Publishing
Miriam Gottfried: Tribune Publishing shareholders should welcome a Gannett takeover [links to Wall Street Journal]
INTERNET/BROADBAND
Libraries Support Lifeline as Important Step on the Path to Digital Equity
SNG Releases “50 States of Broadband” Report Uncovering State-by-State Broadband Activities and Investment - research
The FCC just signaled war against data caps - analysis
David Lazarus: Will AT&T follow Verizon in selling its California landline network? [links to Los Angeles Times]
SECURITY/PRIVACY
Spies see obstacles for calculating surveillance of Americans
CBO Scores the E-mail Privacy Act - research [links to Benton summary]
GAO Report: Vehicle Cybersecurity - research [links to Benton summary]
House Committee Fears International Cyber Deal's Impact on Pentagon [links to nextgov]
Groups to FCC: Reject Broadband Privacy CPNI Extension [links to Benton summary]
TELEVISION
FTC Consumer Protection Director Submits Comment on Privacy Enforcement Implications of FCC’s Proposed Set-Top Box Rulemaking - press release
NCTA Unloads on FCC Set-Top Plan [links to Broadcasting&Cable]
Association of National Advertisers to FCC: Cable-Box Competition Is Bad for Advertisers [links to AdWeek]
The FCC’s Misguided Quest to Keep the World Safe for Set-top Boxes [links to AT&T press release]
Public Knowledge: Set-top Box Proposal Benefits Everyone [links to Broadcasting&Cable]
Revolt CEO Revolts Against Set-Top Plan [links to Multichannel News]
Cable Set-Top Box Arguments: Nothing But Reruns [links to Harold Feld]
Commissioner Clyburn's Remarks at the FCC Video Marketplace Workshop - speech [links to Benton summary]
Cable Network Subscribers Fell 3.2% in May [links to Broadcasting&Cable]
Leichtman Research Group: Connected TV Households Rise to 65% of TV Households [links to telecompetitor]
The future of TV is arriving faster than anyone predicted - WaPo op-ed [links to Benton summary]
GOVERNMENT & COMMUNICATIONS
President Obama Stresses Need to Monitor Data in Fighting Terrorism [links to Benton summary]
CBO Scores the MEGABYTE Act (S 2340) - research [links to Benton summary]
White House Police Data Initiative Highlights New Commitments - press release [links to Benton summary]
EMERGENCY COMMUNICATIONS
Emission Mask Requirements and Analog FM Capability - public notice [links to Benton summary]
ELECTIONS & MEDIA
Commission on presidential debates considers taking crowdsourced questions [links to Benton summary]
CNN President Jeff Zucker: We're 'holding Trump's feet to the fire' [links to Politico]
Trump will kick off his California campaign from Silicon Valley [links to Revere Digital]
People under 30 really don’t like Donald Trump, socialism or the media [links to Washington Post]
The media is very skeptical of this Ted Cruz-John Kasich deal [links to Washington Post]
Because of Tech, Future Presidents Might Have to be Groomed from Birth [links to nextgov]
Fed-up GOP mega-donors sitting on their checkbooks [links to Hill, The]
Study: Cable And Broadcast News Try To Cover The Economy Without Economists [links to Media Matters for America]
ADVERTISING
Ghostery Wants To Bring Ad-Blocking Technology To Broadband Providers [links to MediaPost]
Association of National Advertisers to FCC: Cable-Box Competition Is Bad for Advertisers [links to AdWeek]
How a Senator used Facebook ads to influence employees in a single DC building [links to Benton summary]
Teens who see e-cig ads are more likely to vape, CDC says [links to Verge, The]
CONTENT
Pope: Happiness not a smartphone app [links to Hill, The]
TRANSPORTATION
GAO Report: Vehicle Cybersecurity - research [links to Benton summary]
JOURNALISM
The Center for Investigative Reporting bets it can change audio journalism—and itself [links to Columbia Journalism Review]
DIVERSITY
Vice: We’re Tracking How We Represent Women With This Gender Equality Tool [links to Vice]
STORIES FROM ABROAD
President Obama Stresses Need to Monitor Data in Fighting Terrorism [links to Benton summary]
Sec of Commerce Pritzker Discusses Importance of Digital Economy at 2016 Hannover Messe Digital Transformation of Industry Conference - speech [links to Benton summary]
Measuring Cross-Border Data Flows: Unmet Data Needs Roundtable - public notice [links to Benton summary]
How a bunch of tech geeks helped save Nepal’s earthquake victims [links to Washington Post]
India said to mandate panic button in mobile phones [links to Hill, The]
Five ways to cripple tech and the US economy - AEI op-ed [links to Benton summary]
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OWNERSHIP
DOJ ALLOWS CHARTER'S ACQUISITION OF TWC AND BHN
[SOURCE: Department of Justice, AUTHOR: Press release]
The Department of Justice announced a settlement that permits Charter Communications to complete its $78 billion proposed acquisition of Time Warner Cable and its related $10.4 billion acquisition of Bright House Networks from Advance/Newhouse Partnership. The settlement forbids the merged company, referred to as “New Charter,” from entering into or enforcing agreements that could make it more difficult for online video distributors (OVDs) to obtain video content from programmers. The Chairman of the Federal Communications Commission will circulate an order that would approve the combination of Charter, TWC and BHN subject to conditions. The settlement further provides that New Charter will not be able to avail itself of other distributors’ most favored nation (MFN) provisions if they are inconsistent with this prohibition. The settlement also prohibits New Charter from retaliating against programmers for licensing to OVDs. The department said that it would continue to closely monitor developments in the industry and would vigorously enforce compliance with the proposed settlement to ensure that New Charter does not use the influence it will have as one of the nation’s largest multichannel video programming distributors (MVPDs) to restrict or discourage programmers from licensing their content to OVDs. The department said it also examined whether the merger would allow New Charter to become an unavoidable gatekeeper for Internet-based services, including OVDs, that rely on a broadband connection to reach consumers. The order circulated by the FCC Chairman would impose an obligation on New Charter to make interconnection available on a non-discriminatory, settlement-free basis to companies that meet basic criteria. In light of the remedy sought by the FCC Chairman, the department elected not to pursue duplicative relief in its own lawsuit.
benton.org/headlines/justice-department-allows-charters-acquisition-time-warner-cable-and-bright-house-networks | Department of Justice | Wheeler Statement | New York Times | Broadcasting & Cable | The Hill | Washington Post | Revere Digital
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WHEELER STATEMENT ON CHARTER/TIME WARNER/BHN MERGER
[SOURCE: Federal Communications Commission, AUTHOR: FCC Chairman Tom Wheeler]
Based on imposed conditions that will ensure a competitive video marketplace and increase broadband deployment, an order recommending that the Charter/Time Warner Cable/Bright House Networks transaction be approved has circulated to the Commissioners. As proposed, the order outlines a number of conditions in place for seven years that will directly benefit consumers by bringing and protecting competition to the video marketplace and increasing broadband deployment. If the conditions are approved by my colleagues, an additional two million customer locations will have access to a high-speed connection. At least one million of those connections will be in competition with another high-speed broadband provider in the market served, bringing innovation and new choices for consumers, and demonstrate the viability of one broadband provider overbuilding another. In conjunction with the Department of Justice, specific Federal Communications Commission conditions will focus on removing unfair barriers to video competition. First, New Charter will not be permitted to charge usage-based prices or impose data caps. Second, New Charter will be prohibited from charging interconnection fees, including to online video providers, which deliver large volumes of Internet traffic to broadband customers. Additionally, the Department of Justice’s settlement with Charter both outlaws video programming terms that could harm online video distributors (OVDs) and protects OVDs from retaliation– an outcome fully supported by the order I have circulated. All three seven-year conditions will help consumers by benefitting OVD competition. The cumulative impact of these conditions will be to provide additional protection for new forms of video programming services offered over the Internet. Thus, we continue our close working relationship with the Department of Justice on this review. Importantly, we will require an independent monitor to help ensure compliance with these and other proposed conditions. These strong measures will protect consumers, expand high-speed broadband availability, and increase competition.
benton.org/headlines/fcc-chairman-statement-chartertime-warnerbhn-merger | Federal Communications Commission | O'Rielly Statement | Broadcasting & Cable
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ALTICE-CABLEVISION
[SOURCE: Wall Street Journal, AUTHOR: Shalini Ramachandran]
With two weeks to go before a decision is due, New York City officials are still making noise behind the scenes about concerns with Altice’s proposed acquisition of Cablevision. Two top city officials reiterated potential concerns about the European telecom group’s $10 billion deal to buy Cablevision, whose customers are primarily in the greater New York area. City officials’ questions have included whether ambitious synergy goals and a big debt burden post-deal will lead to job cuts and underinvestment in customer service and broadband. They also worry the company will shirk investing in infrastructure for lower-income residents in Brooklyn and the Bronx in favor of wealthier communities in Westchester County and Long Island.
benton.org/headlines/clock-ticking-new-york-city-officials-still-worried-about-cablevision-deal | Wall Street Journal
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GANNET OFFERS TO BUY TRIBUNE PUBLISHING
[SOURCE: USAToday, AUTHOR: Roger Yu]
Gannett Co., which owns USA TODAY and more than 100 other media properties across the country, said it offered to buy Tribune Publishing for about $815 million, its second big expansion move since spinning off from its former parent less than a year ago. In a letter to Justin Dearborn, CEO of Tribune, which owns the Los Angeles Times, Chicago Tribune and nine other dailies, Gannett CEO Robert Dickey reiterated a private April 12 offer to pay $12.25 per share, a 63% premium to Tribune’s closing stock price on April 22. Gannett’s deal includes assuming $390 million of Tribune’s debt outstanding as of Dec. 31, 2015. The offer price is about 5.6 times Tribune’s estimated 2016 earnings before interest, taxes and other items (EBITDA). Gannett estimates about $50 million a year in “synergies” savings. Gannett owns USA TODAY plus 107 local news organizations including the Detroit Free Press, Cincinnati Enquirer, Des Moines Register, the Milwaukee Journal Sentinel and Arizona Republic. Shares of Tribune closed April 22 at $7.52, up 2.6%, and shot up 58% to $11.84 in early trading April 25.benton.org/headlines/gannett-offers-815-million-buy-tribune-publishing | USAToday | Revere Digital
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INTERNET/BROADBAND
LIBRARIES SUPPORT LIFELINE AS IMPORTANT STEP ON THE PATH TO DIGITAL EQUITY
[SOURCE: Benton Foundation, AUTHOR: Anthony Marx, Crosby Kemper]
When Benjamin Franklin created the first lending library in America almost three hundred years ago, he established an institution committed to letting loose the transformational power of knowledge. To this day, public libraries stand committed to the principle that information should be available to all, regardless of where you live, how much you earn, or when you were born. Increasingly libraries provide some of that information online, through free access to e-books, original documents like the New York Public Library’s high-definition scan of Thomas Jefferson’s Declaration of Independence, and even software that you can borrow virtually through the Kansas City Public Library. All of these efforts depend on affordable, accessible Internet service. The recently announced Lifeline reforms will provide support to low-income individuals who struggle to balance an Internet subscription with other monthly necessities. This home broadband access is a crucial step toward bridging the digital divide.
benton.org/headlines/libraries-support-lifeline-important-step-path-digital-equity | Benton Foundation
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SNG 50 STATES OF BROADBAND REPORT
[SOURCE: Strategic Networks Group, AUTHOR: Press release]
In conjunction with the Rural Telecommunications Congress (RTC), Strategic Networks Group (SNG) released its extensive report on broadband investment and activity. The report combines Federal Communications Commission availability and adoption figures with SNG’s survey results of 48 states to rank states on the following dimensions: Availability, Adoption, Driving Meaningful Use, Growth Investment, and Regulation. “We put a great deal of time into determining the dimensions and how to measure each,” explains Doug Adams, SNG’s VP Communications. “There’s so much more to maximizing the benefits of broadband than merely providing fiber/higher speeds.” Ranking each state with a weight for each category yielded the following as the top 5 states in terms of broadband; New Mexico, Maine, Ohio, New York, and Vermont. Some highlights of the findings include:
52% of states have an office dedicated to broadband
Only a little more than a quarter (28%) definitely have a budget to fund broadband initiatives
Activities most often funded by states are “planning and support” (82% of funded states) and infrastructure (45%).
“One overall finding that was interesting is that investment activities seem to be heavily weighted towards the “supply” of broadband and include mapping, infrastructure planning, and grants, surpassing economic development activities that impact econ0omic advancement including raising awareness, training, and driving end-user utilization,” explains Michael Curri, SNG’s president and founder.
benton.org/headlines/sng-releases-50-states-broadband-report-uncovering-state-state-broadband-activities-and | Strategic Networks Group | Read the report
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DATA CAPS
[SOURCE: The Verge, AUTHOR: TC Sottek]
The US government is about to approve Charter's bid for Time Warner Cable, and like similar mega-mergers in recent history, it's coming with plenty of strings attached. One of those strings is a prohibition on data caps, which have been a subject of frustration for thousands of broadband customers over the past year. But the Federal Communications Commission has been pretty quiet about them so far — until April 25, when it revealed a combined Charter / Time Warner Cable won't be allowed to impose them for seven years. The FCC might not be able to turn back and impose similar restrictions on Comcast, even though the company has been the worst offender in imposing data caps recently. (Ironically, the FCC might have been able to impose that restriction had it instead allowed Comcast to buy Time Warner Cable, but here we are.) Still, it's a useful indication of what the most important regulatory agency in communications is thinking, and it will at least provide relief to the roughly 24 million customers the merged company will serve. But zoom out a little and you can see the FCC's messy reality: as other efforts fail, big, risky mergers have provided the agency with some of the best opportunities to impose reasonable consumer-friendly regulations on broadband companies.
benton.org/headlines/fcc-just-signaled-war-against-data-caps | Verge, The
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SECURITY/PRIVACY
SPIES AND SURVEILLANCE OF AMERICANS
[SOURCE: The Hill, AUTHOR: Julian Hattem]
Federal intelligence officials would face multiple obstacles in calculating the number of Americans whose data is swept up in a large surveillance regime meant to target foreigners, the nation’s top spy said April 25. Intelligence agents will “do our best” to come up with a way to roughly calculate how many Americans are included in the spying, National Intelligence Director James Clapper said. Still, he suggested a public estimate might not be possible and that "any methodology we come up with will not be completely satisfactory to all parties." The comments could be troubling for privacy advocates and a bipartisan collection of members of Congress, who asked Director Clapper’s office to come up with an estimate in a letter recently. “Even a rough estimate of the number of US persons impacted by these programs will help us to evaluate” how pervasive the collection of Americans’ data is, 14 members of the House Judiciary Committee wrote to Director Clapper. Federal surveillance law includes additional protections to safeguard the privacy of Americans over foreign citizens, who do not enjoy the same rights under the Constitution.
benton.org/headlines/spies-see-obstacles-calculating-surveillance-americans | Hill, The | ars technica | ars technica
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TELEVISION
FTC CONSUMER PROTECTION DIRECTOR FILES COMMENT ON PRIVACY AND FCC'S SET-TOP PROPOSAL
[SOURCE: Federal Trade Commission, AUTHOR: Press release]
Federal Trade Commission Bureau of Consumer Protection Director Jessica Rich filed a comment with the Federal Communications Commission regarding the FCC’s proposed rulemaking to expand the commercial availability of television set-top boxes for consumers. In her comment, Director Rich recommends that if the FCC proceeds with the rulemaking, it should modify the proposed rule to facilitate FTC enforcement actions against third-party set-top box manufacturers that fail to comply with certain consumer privacy protections. The comment notes that the proposed rule would require cable and satellite providers to provide access only to third-party set-top box makers that certify to the providers that their products comply with the privacy protections required of the providers themselves. The comment recommends access be limited to third-party set-top box manufacturers that make consumer-facing statements regarding their compliance, which the FTC could enforce pursuant to its authority under the FTC Act. Director Rich’s letter also notes the FTC’s extensive history of privacy enforcement.
benton.org/headlines/ftc-consumer-protection-director-submits-comment-privacy-enforcement-implications-fccs | Federal Trade Commission | Broadcasting&Cable
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