April 2016

Sec of Commerce Pritzker Discusses Importance of Digital Economy at 2016 Hannover Messe Digital Transformation of Industry Conference

US Secretary of Commerce Penny Pritzker delivered remarks at the Digital Transformation of Industry Conference hosted by the European Commission (EC) during the 2016 Hannover Messe. The conference provided a forum for public and private sector leaders in both the US and Europe to discuss the opportunities and challenges presented by the digitization of industry. Secretary Pritzker presented the US perspective on key issues related to digitization, and highlighted the critical role that the EU-US Privacy Shield and the Digital Single Market play in spurring innovation, and boosting the transatlantic digital economy. In November 2015, Secretary Pritzker announced the Department's new Digital Economy Agenda, which is focused on promoting innovation, a free and open Internet, trust online, and Internet access for all Americans with the input and support of the private sector.

GAO Report: Vehicle Cybersecurity

Over time, the amount of software code in vehicles has grown exponentially to support a growing number of safety and other features. However, the reliance on software to control safety-critical and other functions also leaves vehicles more vulnerable to cyberattacks. The US Government Accountability Office was asked to review cybersecurity issues that could impact passenger safety in modern vehicles. This report addresses, among other things, (1) available information about the key cybersecurity vulnerabilities in modern vehicles that could impact passenger safety; (2) key practices and technologies, if any, available to mitigate vehicle cybersecurity vulnerabilities and the impacts of potential attacks; (3) views of selected stakeholders on challenges they face related to vehicle cybersecurity and industry-led efforts to address vehicle cybersecurity; and (4) Department of Transportation (DOT) efforts to address vehicle cybersecurity.

GAO reviewed relevant existing regulations and literature and interviewed officials from DOT; the Departments of Commerce, Defense, and Homeland Security; industry associations; and 32 selected industry stakeholders, including automakers, suppliers, vehicle cybersecurity firms, and subject matter experts. The experts were selected based on a literature search and stakeholder recommendations, among other things. GAO recommends that DOT define and document its roles and responsibilities involving safety-critical systems. DOT concurred with our recommendation.

CBO Scores the E-mail Privacy Act

The E-mail Privacy Act (HR 699) would amend the Electronic Communications Privacy Act of 1986 (Public Law 99-508) to change current law relating to the privacy of certain personal communications. The bill also would change the procedures that government agencies must follow when requiring providers of remote computing services or electronic communication services to disclose stored communications. Many of those changes are technical in nature.

CBO estimates that enacting the bill would have no significant cost to the federal government. Enacting the legislation would not affect direct spending or revenues; therefore, pay-as-you-go procedures do not apply. CBO estimates that enacting HR 699 would not increase net direct spending or on-budget deficits in any of the four consecutive 10-year periods beginning in 2027. HR 699 contains no intergovernmental or private-sector mandates as defined in the Unfunded Mandates Reform Act and would impose no costs on state, local, or tribal governments.

Groups to FCC: Reject Broadband Privacy CPNI Extension

Free Press, the Center for Digital Democracy and others have asked the Federal Communications Commission to deny Internet service providers and advertiser requests that it extend the comment period for for its broadband privacy framework proposal. The American Cable Association, National Cable & Telecommunications Association and wireless ISPs all said the complicated issue required more time to vet the broadband customer proprietary network information (CPNI) proposal and asked that it be extended from from the end of May until early July. That followed a request for extension by the Association of National Advertisers (from the end of next month until early July).

Free Press et al. said that the added time was unnecessary, that the FCC has been saying for a year it was going to come up with a new framework, and that the public back-and-forth on the issue has clearly signaled many of the issues likely to be addressed. And trying to use ISPs own calls for regulatory certainty in other areas, like the network neutrality decision that initiated the broadband privacy review, they said that swift action by the FCC would provide greater certainty about how privacy regulations would apply going forward.

SNG Releases “50 States of Broadband” Report Uncovering State-by-State Broadband Activities and Investment

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.

Commissioner Clyburn's Remarks at the FCC Video Marketplace Workshop

Independent and diverse programmers from every conceivable ideological spectrum, say that when it comes to offering much requested, desired and needed niche programming to the masses, they face insurmountable challenges when it comes to program carriage. These challenges range from simply being able to acquire carriage; to difficulty receiving fair or reasonable contract terms; to prohibitions on growing their online distribution model because
program distribution access is often restricted via contract.

Is there an answer for those frustrated consumers seeking more diverse programming, as well as programmers looking to expand their reach to more households? Is there a disconnect and if the answer is yes, where is it? And does this all mean that our existing system is broken\ and if so, who should fix it? These questions were among the many, that led me to push for the Notice of Inquiry adopted by the Commission this past February. This fact-finding exercise, asked many important questions, including whether Section 257 of the Communications Act provided the Commission with authority to impose regulations aimed at improving programming diversity. The NOI also asked whether the use of alternative distribution method (ADM) and most favored nation (MFN) clauses thwart competition, diversity or innovation.

Emission Mask Requirements and Analog FM Capability

In this Report and Order, we adopt rules that guard against interference to critical public safety communications in the 800 MHz National Public Safety Planning Advisory Committee (NPSPAC) band (806-809/851-854 MHz) by confirming the emission mask applicable to digital transmissions in the NPSPAC band. We also take steps to enhance public safety system interoperability in the VHF, UHF and 800 MHz bands by specifying analog FM as the standard emission for use on all interoperability channels in these bands. In so doing we lessen the possibility that first responders will encounter harmful interference in the NPSPAC band and provide certainty to manufacturers concerning the capabilities required of radios used for interoperable communications.

Measuring Cross-Border Data Flows: Unmet Data Needs Roundtable

As part of the Digital Economy Agenda, the Department of Commerce is working to identify data gaps in measuring the importance of cross-border data flows and the economic impact of restrictions to the free-flow of data. Through this Notice, we announce a roundtable to facilitate a discussion with stakeholders and experts as a first step in improving the Department's understanding of those data gaps and related economic questions. The roundtable will be held on May 9, 2016, from 8:30 am to 12:00 pm, Eastern Daylight Time, and will be held at the Bureau of Labor Statistics Conference Center, 2 Massachusetts Avenue NE., Washington (DC). Attendees are asked to provide prior notice of their intention to attend by sending an e-mail to Giulia McHenry at or gmchenry@ntia.doc.gov, or Jessica Nicholson at jnicholson@doc.gov no later than Thursday, May 5, 2016 at 12 pm, Eastern Daylight Time.