April 2016

Senate Hearing Aims Spotlight on FCC Process

The Senate Homeland Security & Governmental Affairs Committee took aim April 20 at the Federal Communications Commission's network neutrality Open Internet order and ex parte contacts in a hearing on "The Administrative State: An Examination of Federal Rulemaking." Chairman Ron Johnson (R-WI) called it an incredibly important hearing and said that while some regulation was needed, there was a point of "overregulation." The hearing dealt with the broader issue of regulating through administrative action—which is the charge Republicans have leveled at the Obama Administration for pushing Title II reclassification of Internet service providers and more recently calling for new set-top box rules. But it used the FCC as an example of the federal regulatory overreach the committee's Republican leadership asserts.

Four of the five witnesses were of like mind that there was currently federal regulatory overreach, with the scope of agency regulations far broader than Congress had intended. Witness Jonathan Turley, a professor at George Washington University, said he did not want to weigh in on merits of net neutrality, but what he saw as an opaque process. He said that he agreed with many things President Obama was trying to do but not the way he was doing it. Randolph May, president of the Free State Foundation and former associate general counsel at the FCC, said the rulemaking process is faulty and has given rise to the administrative state. He focused on the FCC's net neutrality rulemaking as a solution in search of a problem.

In an Age of Terror, an Early Start on the Presidential Transition

Officials from the White House and each of the five presidential campaigns were meeting on April 20 at a luxurious hilltop estate to begin preparing for the day that President Barack Obama relinquishes power to a successor. During a two-day gathering on the grounds of Kykuit, the manor built by John D. Rockefeller, they will attend breakout sessions, working lunches and dinners, and white board-assisted discussions on how to execute a seamless transition of power in an age when the threat of a terrorist attack like the one on Sept 11, 2001, requires a fully functioning White House at all times. The meeting is a reminder that the Obama Administration will soon come to an end, and it is also the official start of a task akin to a giant corporate merger. But this merger will involve the federal government’s 4,000 senior executives and a $4 trillion budget and will all be compressed into the 72 days between the election on Nov 8 and the Jan 20, 2017, inauguration.

The National Archives and Records Administration — which by law must take custody of all the departing president’s records by 12:01 p.m. on Jan. 20 — has to begin copying a vast amount of digital material to its servers. The job has grown exponentially larger in recent years as the White House has become increasingly wired and data driven. (When President Obama took office, there were fewer than a dozen laptops in use at the White House; now, nearly every employee has one.) While the Clinton Administration produced roughly three terabytes — or trillions of bytes — of records, including 20 million e-mails, the Bush administration eight years later had to transfer about 80 terabytes, including 200 million e-mails. The archives administration projects that this president will turn over two and a half times as much: 200 terabytes. Recognizing the magnitude of the job, the White House resolved to begin the process, which involves copying the large files of e-mail records, photographs and videos that have become a staple of White House communications during President Obama’s term, several months earlier than in the past. It is expected to commence in April.

Evolving Technologies Change the Nature of Internet Use

Americans’ rapid move toward mobile Internet service appears to be coming at the expense of home broadband connections, according to the latest computer and Internet use data released by the National Telecommunications & Information Administration. At the same time, many Americans are using a wider range of computing devices in their daily lives. Both of these findings suggest that technological changes are driving a profound shift in how Americans use the Internet, which may be opening a new digital divide based on the use of particular types of devices and Internet services.

These results come from the US Census Bureau’s Computer and Internet Use Supplement to the Current Population Survey (CPS), which includes data collected for NTIA in July 2015 from nearly 53,000 households. Mobile Internet service appears to be competing more directly with wired Internet connections. According to the data, three-quarters of American households using the Internet at home in 2015 still used wired technologies for high-speed Internet service, including cable, DSL, and fiber-optic connections. However, this represents a sizable drop in wired home broadband use, from 82 percent of online households in July 2013 to 75 percent two years later. Over this same period, the data also shows that the proportion of online households that relied exclusively on mobile service at home doubled between 2013 and 2015, from 10 percent to 20 percent.

Republican Reps on the offensive over timing of FCC fine

Republican Reps are on the offensive over the timing of the announcement of a planned $51 million fine the Federal Communications Commission issued earlier in April. They question why the fine, which the agency plans to issue against a wireless provider for alleged violations committed as part of the Lifeline program of phone service subsidies for the poor, came shortly after a vote to expand the program to cover Internet service. “The timeline of the FCC’s actions and inaction suggest the possibility that something was going on down there at the FCC,” said House Communications Subcommittee Chairman Greg Walden (R-OR) at an April 19 markup. “That they didn’t want this released but, interestingly enough, it was released the day after the commissioners had to vote on this expansion of the program."

Republican FCC Commissioner Ajit Pai appeared on Fox Business Network April 20 to raise his own alarms about the way the fine was handled. “We were also told we learned about this fraud back in October of 2014, that that investigation had wrapped up pretty much in the middle of 2015, but that we were not going to be able to say anything about it until April 1 at the very earliest, conveniently one day after we voted on that party line vote to expand to program,” he said. “That was wrong." Commissioner Pai has also said that the company, Total Call Mobile, avoided paying higher fines because the FCC didn’t issue its Notice of Apparent Liability before the statute of limitations on some of the alleged violations expired. He said in his statement that he is “disappointed that we do not—and to some extent cannot—sanction Total Call Mobile for all of its wrongful conduct.”

Sens seek to avoid confirmation fight for President Obama's library nominee

Senators in both parties are hoping a high-profile nomination to lead the Library of Congress does not get bogged down in the broader confirmation fight ahead of the 2016 elections. The Senate Rules Committee on April 20 held a largely laudatory nomination hearing for Dr. Carla Hayden, who could become the first female or African-American Librarian of Congress. She is also the first new nominee in decades.

"I think this nomination is on a separate track," Committee Chairman Roy Blunt (R-MO) said when asked whether her confirmation could suffer from the broader confirmation fight in the Senate. Republican Sens have declined to hold confirmation hearings for President Barack Obama's Supreme Court nominee Merrick Garland and have ruled out bringing up a vote ahead of the election. But Chairman Blunt brushed off any comparison between a 10-year appointment to the Library of Congress and a lifetime appointment to the Supreme Court. "Surely no one asks seriously how this is different than the lifetime appointment to the Supreme Court," he said. Ranking Member Charles Schumer (D-NY) similarly said he hoped Dr Hayden could be "swiftly confirmed." Dr Hayden is a veteran of the American Library Association and the current chief executive of the Enoch Pratt Free Library in Baltimore (MD). If confirmed, she would be the first new librarian in 28 years.

Comcast to allow some TV customers to ditch set-top box

Cable giant Comcast said it will allow some customers to watch cable TV without leasing a set-top box, responding to federal regulators’ heightened efforts to open up the pay-TV set-top box market.

In a limited program that will be gradually expanded, customers with a Roku TV, a Roku streaming media player, or a 2016 Samsung Smart TV "later this year" will be able to watch Comcast’s TV programming – including local broadcast, cable and DVR recordings stored in the cloud -- through the Xfinity TV Partner app embedded in the TV set or via the Roku devices. To use the app, customers still have to subscribe to a cable TV package from Xfinity, which is Comcast’s brand for its cable TV and Internet services. Comcast's new program plans to recruit more manufacturers to expand its device options. Customers who subscribe to Comcast’s TV service but buy Internet from another competitor will have to use a small device. Comcast doesn’t plan to charge for the device.

Center for Digital Democracy: FCC Must Protect Box Data, Whoever Has It

The Center for Digital Democracy says it is all for the Federal Communications Commission unlocking the set-top box to promote competition, but wants to make sure it protects children and their personal information on whichever box is offered, by multichannel video programming distributors or the third parties that would get access to set-top data.

In comments on the FCC set-top proposal, CDD said that navigation devices "regardless of whether they are provided by incumbents or third parties, require robust, new consumer safeguards." For example, said the group, a leading voice for government protection of children's online data and protection from online marketing, "children require specific safeguards to ensure they do not become victims of unfair and deceptive practices, including from the delivery of data-driven advertising via navigational equipment." CDD also said the FCC should protect the privacy of navigational information in its separate broadband CPNI rulemaking. The FCC is proposing requiring broadband subs to have to opt in to use of their information for third-party targeted marketing.

Verizon Says Facilities Sabotaged

Verizon said that thousands of customers have lost service in the past "few days" as "criminals have damaged or destroyed critical network facilities." The company did not point any fingers, but did point out that the damage coincided with a strike involving East coast, wireline workers, though it did say the impact of the strike was minimal. Verizon said there had been at least 24 incidents of sabotage over the past week in five states, including New Jersey, Massachusetts Pennsylvania, New York, all strike-affected states. “We will find out who’s behind these highly dangerous criminal acts and we will pursue criminal charges,” said Michael Mason, Verizon’s chief security officer. Verizon offered a $10,00 reward for arrest and prosecution of the saboteurs. “These perpetrators are putting lives at risk and these dangerous acts need to stop,” said Mason.

Among the damage, according to Verizon, was:

  • Sliced fiber optic cabling at a network facility box in New Jersey that cut services to customers and local emergency personnel, including police and fire departments.
  • Sabotage in Massachusetts in which phone services were cut off for customers for 16 hours.
  • Cut fiber optic and copper cables in New Jersey, Pennsylvania and New York that disabled voice communications and internet connectivity.