May 2016

May 26, 2016 (Media Ownership and More)

BENTON'S COMMUNICATIONS-RELATED HEADLINES for THURSDAY, MAY 26, 2016

NEWS FROM THE FCC MEETING
   FCC Takes Next Steps In Expanding Rural Broadband Access - press release
   FCC Improves And Proposes Updates To Its Communications Network Outage Reporting Requirements - press release
   FCC Proposes to Eliminate Two Public Inspection File Requirements, Reducing Regulatory Burdens on Commercial Broadcasters and Cable Operators - press release

LEGISLATION
   GOP budget bill would kill net neutrality and FCC’s set-top box plan
   Senate Pushed to Pass Clean ECPA Reform Bill [links to Broadcasting&Cable]

OWNERSHIP
   Court Rebukes FCC Over Long Delay in Updating US Media-Ownership Rules
   Court Throws Out FCC's Joint Sales Agreements Rule [links to Benton summary]
   DC Weighs In on FCC JSA Smackdown [links to Broadcasting&Cable]
   New Jersey Board of Public Utilities Approves Altice-Cablevision [links to Multichannel News]
   Altice-Cablevision Headed for June Vote in New York [links to Broadcasting&Cable]

INTERNET/BROADBAND
   Comcast limits data cap overage fees to $200 a month
   FTC Chair Ramirez Wants Broadband Privacy Authority [links to Benton summary]
   AT&T challenges the new Charter in Dallas with fiber plans [links to Fierce]

ELECTIONS & MEDIA
   Hillary Clinton’s Campaign Rebuffs Report’s Criticism of Email Use [links to New York Times]
   Trump staffer’s e-mail miscue lands scoop for Politico [links to Washington Post]
   Campaign money in 2016 has become meaningless - Vox analysis [links to Benton summary]
   Why candidates’ social media use may tell us more than polls [links to Columbia Journalism Review]
   Is Rush Limbaugh in Trouble? The talk radio host is as influential as ever, but his business model is on shaky ground. [links to Politico]
   No, the pressure on Bernie Sanders to drop out isn’t a media creation [links to Washington Post]

WIRELESS/SPECTRUM
   The 5G Triangle - speech [links to Benton summary
   FCC Fines Florida Driver $48k For Jamming Communications [links to Federal Communications Commission]
   FCC Fines Chinese Retailer $34.9m For Marketing Illegal 'Jammers' [links to Federal Communications Commission]
   Microsoft to cut 1,850 jobs in further retreat from smartphones [links to Fierce]
   Sprint CFO: We will lease some spectrum assets via 'spectrum leaseco' within next several months [links to Fierce]
   Daniel Lyons op-ed: The FCC should decline activists’ call to arms against zero rating [links to American Enterprise Institute]

CONTENT
   Dangerous Corporate First Amendment Overreach: Three Information Trends and a Data Application - PK op-ed [links to Benton summary]
   Video Streaming Market Is ‘Approaching Saturation,’ Study Finds [links to Benton summary]
   Women From Venus, Men Still From Mars on Facebook, Study Finds [links to Benton summary]
   Jonathan Taplin: Google’s Plan to Destroy Local TV [links to Broadcasting&Cable]
   Using an Out of Date Browser? Your Bank May Soon Cut You Off [links to Vice]
   Daniel Lyons op-ed: The FCC should decline activists’ call to arms against zero rating [links to American Enterprise Institute]

GOVERNMENT & COMMUNICATIONS
   What the US government really thinks about encryption
   State Dept inspector general report sharply criticizes Clinton’s e-mail practices
   Hillary Clinton’s Campaign Rebuffs Report’s Criticism of Email Use [links to New York Times]
   Clinton campaign: E-mail setup ‘not unique’ [links to Hill, The]
   The Clinton e-mail fight reinforces just how slowly the government adjusts to new technology - WaPo analysis [links to Benton summary]
   What’s driving Silicon Valley to become ‘radicalized’ [links to Benton summary]
   Federal Agencies Need to Address Aging Legacy Systems [links to Government Accountability Office]
   Ticking Time Bomb? Congress Probes Obsolete Federal Tech [links to nextgov]

SECURITY/PRIVACY
   Precision Medicine Initiative and Data Security - White House press release [links to Benton summary]
   Storing voice recordings of people younger than 13 via Alexa, Google Home and Siri appears to flout the Children’s Online Privacy Protection Act [links to Guardian, The]

TELEVISION
   AT&T wants to pipe DirecTV straight into your car [links to Benton summary]
   Jonathan Taplin: Google’s Plan to Destroy Local TV [links to Broadcasting&Cable]
   NCTA’s Michael Powell feels his industry is under regulatory assault [links to C-Net|News.com]

JOURNALISM
   In Silicon Valley, Gossip, Anger and Revenge [links to Benton summary]
   New York Times Hit By New Round of Buyouts, But Promises No ‘Damage’ to Journalism [links to Hollywood Wrap]
   Sunday Shows Less Likely Than Weekday Competitors To Discuss Poverty [links to Media Matters for America]
   A local startup with an emphasis on uplift looks to grow [links to Columbia Journalism Review]

CHILDREN & MEDIA
   Report: Millennial Smartphone Use, 73% Would Give Up Cable TV Before Smartphone [links to telecompetitor]
   Storing voice recordings of people younger than 13 via Alexa, Google Home and Siri appears to flout the Children’s Online Privacy Protection Act [links to Guardian, The]

LABOR
   Verizon strike is hurting its stock [links to Benton summary]
   Technology is changing how we live, but it needs to change how we work [links to Vox]
   Microsoft to cut 1,850 jobs in further retreat from smartphones [links to Fierce]

HEALTH
   Precision Medicine Initiative and Data Security - White House press release [links to Benton summary]

DIVERSITY
   Black lawmakers want Dept of Labor to push tech on diversity [links to Benton summary]
   On Capitol Hill, Asian American representation in pop culture is on the agenda [links to Washington Post]

POLICYMAKERS
   Editorial: House Majority Leader McCarthy fails to meet basic Silicon Valley value [links to San Jose Mercury News]

COMPANY NEWS
   Mossberg: Can Apple win the next tech war? [links to Revere Digital]
   Microsoft’s move away from making smartphones actually makes a lot of sense [links to Washington Post]

STORIES FROM ABROAD
   Facebook data transfers threatened by EU ruling
   Stuart Brotman: The European Union's Digital Single Market Strategy: A conflict between government's desire for certainty and rapid marketplace innovation [links to Brookings]
   2016 CIGI-Ipsos Global Survey on Internet Security and Trust [links to Benton summary]
   Computer & Communications Industry Association Cautions EU Against 'Net Reg Expansion [links to Multichannel News]

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FCC MEETING

FCC TAKES NEXT STEPS IN EXPANDING RURAL BROADBAND ACCESS
[SOURCE: Federal Communications Commission, AUTHOR: Press release]
Continuing its push to expand access to broadband in rural areas, the Federal Communications Commission took important steps toward investing an additional $2 billion in rural networks over the next decade. The item adopted by the Commission establishes rules of the road for an auction that will harness market forces to expand broadband in targeted rural areas. The item also seeks comment on a number of issues surrounding the auction so that it can deliver support to unserved communities as equitably and efficiently as possible. The item builds on the substantial progress the FCC has made in recent years connecting rural America to broadband. Last year, the nation’s largest carriers – known as “price cap” carriers – accepted $9 billion over six years from Phase II of the Connect America Fund to expand broadband in their rural service areas. And in March, the FCC reformed its broadband support for the nation’s smallest carriers, providing $20 billion over the next decade. The auction seeks to expand service to census blocks unserved by broadband delivering speeds of 10 Mbps downloads/1 Mbps uploads in 20 states where the price cap carriers declined last year’s Connect America Fund offer. Also included in the auction are locations across the country with extremely high deployment costs.
benton.org/headlines/fcc-takes-next-steps-expanding-rural-broadband-access | Federal Communications Commission | Wheeler Statement | Clyburn Statement | Rosenworcel Statement | Pai Statement | O'Rielly Statement | telecompetitor
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FCC IMPROVES AND PROPOSES UPDATES TO ITS COMMUNICATIONS NETWORK OUTRAGE REPORTING REQUIREMENTS
[SOURCE: Federal Communications Commission, AUTHOR: Press release]
The Federal Communications Commission took action to improve and update its communications network outage reporting requirements so that the agency can maintain awareness of network disruptions and promote reliable communications for consumers and businesses. In a Report and Order adopted May 25, the Commission made targeted refinements to its current reporting requirements to enhance the information it receives on outages related to legacy networks and reduce burdens on industry. In addition, in an accompanying Further Notice of Proposed Rulemaking, the Commission proposed updating its reporting requirements to keep pace with technological change. The Commission noted that communications providers are transitioning from legacy to IP-based networks, and the nation’s 911 services are already increasingly reliant on broadband technology. However the current outage reporting requirements are largely centered on legacy networks and services. The Commission is therefore seeking comment on a proposal to update its reporting requirements to address broadband disruptions. The Commission also proposed updates to its current reporting requirements for interconnected Voice over Internet Protocol (VoIP) providers to ensure greater usefulness and consistency of information, as well as proposed changes to better reflect wireless outages in rural areas.
benton.org/headlines/fcc-improves-and-proposes-updates-its-communications-network-outage-reporting-requirements | Federal Communications Commission | Wheeler Statement | Clyburn Statement | Rosenworcel Statement | Pai Statement | O'Rielly Statement
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FCC PROPOSES TO ELIMINATE TWO PUBLIC INSPECTION FILE REQUIREMENTS
[SOURCE: Federal Communications Commission, AUTHOR: Press release]
The Federal Communications Commission proposed to eliminate two public inspection file rules. These rules currently require: (1) commercial television and radio broadcast stations to retain, and make available to the public, copies of correspondence from viewers and listeners; and (2) cable operators to maintain and allow public inspection of the location of a cable system’s principal headend. The Commission adopted online public file rules for broadcast television licensees in 2012, moving television public files that previously were retained at stations’ local main studios to an online, Commission-hosted database. TV broadcasters completed their transition to the online file in July 2014. Modernizing the filing process made it easier for consumers to access information about their broadcast services without having to travel to the station’s main studio and reduced the cost of broadcaster compliance. Last January, the Commission expanded the move to online filing to cable, radio and satellite operators. The proposal furthers the Commission’s recent progress in modernizing its public inspection file rules. The proposed elimination of these rules will reduce regulatory burdens on commercial broadcasters and cable operators without adversely affecting the general public. Removing these requirements also would enable broadcasters and cable operators to make their entire public inspection file available online and permit them to cease maintaining local public files. While it appears that the general public does not need access to it, principal headend information must be made available to certain entities, including the FCC and local television stations. The proposal asks for comment on how this information should be collected and made available to entities that need it.
benton.org/headlines/fcc-proposes-eliminate-two-public-inspection-file-requirements-reducing-regulatory-burdens | Federal Communications Commission | TVNewsCheck | B&C | The Hill
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LEGISLATION

GOP BUDGET BILL WOULD KILL NET NEUTRALITY AND FCC'S SET-TOP BOX PLAN
[SOURCE: ars technica, AUTHOR: Jon Brodkin]
Republican Reps released a plan to slash the Federal Communications Commission's budget by $69 million and prevent the FCC from enforcing network neutrality rules, "rate regulation," and its plan to boost competition in the set-top box market. The proposal is the latest of many attempts to gut the FCC's authority, though it's unusual in that it takes aim at two of FCC Chairman Tom Wheeler's signature projects while also cutting the agency's budget. The plan is part of the government's annual appropriations bill. The bill contains $315 million for the FCC—a cut of $69 million below the fiscal year 2016 enacted level and $43 million below the [agency's] request," said an announcement by the House Appropriations Committee Chaired by Rep Hal Rogers (R-KY). "The legislation prohibits the FCC from implementing the net neutrality order until certain court cases are resolved, requires newly proposed regulations to be made publicly available for 21 days before the Commission votes on them, prohibits the FCC from regulating broadband rates, and requires the FCC to refrain from further activity of the recently proposed set-top box rule until a study is completed."
benton.org/headlines/gop-budget-bill-would-kill-net-neutrality-and-fccs-set-top-box-plan | Ars Technica | Public Knowledge
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OWNERSHIP

MEDIA OWNERSHIP RULING
[SOURCE: Wall Street Journal, AUTHOR: John McKinnon]
A federal appeals court rebuked the Federal Communications Commission over the agency’s yearslong delay in updating its media-ownership rules. In a sharply worded ruling, the Third US Circuit Court of Appeals in Philadelphia threatened to toss out the government’s ownership rules altogether if the FCC doesn’t get its effort on track. The opinion came in a broad legal challenge by broadcasters and others to the FCC’s handling of media-ownership rules. Throwing out the rules would be “the administrative-law equivalent of burning down the house to roast the pig, and we decline to order it,” said the opinion written by Judge Thomas Ambro. “However, we note that this remedy, while extreme, might be justified in the future if the Commission does not act quickly to carry out its legislative mandate.” The three-judge panel’s ruling is likely to accelerate the FCC’s efforts to update its rules, some of which are 40 years old.
benton.org/headlines/court-rebukes-fcc-over-long-delay-updating-us-media-ownership-rules | Wall Street Journal | CommLawCenter
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INTERNET/BROADBAND

COMCAST LIMITS DATA CAP OVERAGE FEES TO $200 A MONTH
[SOURCE: ars technica, AUTHOR: Jon Brodkin]
Starting June 1, Comcast customers who face data caps will not be able to rack up more than $200 worth of overage charges in a month. Comcast will continue to charge an extra $10 for each 50GB allotted to customers beyond the standard data plan. But prior to this change, there was apparently no limit on how many times per month a customer could be charged the extra $10. Comcast is also raising the monthly cap from 300GB to 1TB beginning June 1. To accumulate $200 in overage charges, customers would have to use an additional terabyte. Comcast will also let customers purchase unlimited data for an extra $50 a month starting June 1, up from the current $30 or $35. When Comcast introduced the unlimited data option in 2015, it was only available in some cities and towns. But with the June 1 change, it appears every customer in one of the data cap trial markets will be able to buy unlimited data. Customers who are signed up for unlimited data will pay the extra $50 each month even if they don't go over the cap. According to the letter posted on DSLReports, customers already paying for unlimited data will keep their current pricing until the end of 2016; after that, they will pay $50.
benton.org/headlines/comcast-limits-data-cap-overage-fees-200-month | Ars Technica
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GOVERNMENT & COMMUNICATIONS

OBAMA ADMINISTRATION AND ENCRYPTION
[SOURCE: Christian Science Monitor, AUTHOR: Sara Sorcher, Joshua Eaton]
The national debate over the growing use of encryption on consumer devices is often framed in stark terms: Silicon Valley versus Washington in a bicoastal battle over privacy. But inside the Obama Administration, a vigorous debate over the merits of widespread encryption is playing out, with many key government figures quietly advocating against any government policy decision or legislation that would force tech companies to weaken privacy-enhancing products to allow greater government access to communications. “This sort of government versus tech narrative is a mischaracterization,” says a senior administration official, who would only speak under condition of anonymity. “This issue has engendered robust debate in our discussions within the administration.” The diverse views within the administration – and lack of consensus – appear to have contributed to a delay in an expected formal announcement of administration policy.
benton.org/headlines/what-us-government-really-thinks-about-encryption | Christian Science Monitor
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STATE DEPT IG REPORT SHARPLY CRITICIZES CLINTON'S E-MAIL PRACTICES
[SOURCE: Washington Post, AUTHOR: Rosalind Helderman, Tom Hamburger]
The State Department’s independent watchdog has issued a highly critical analysis of Hillary Clinton’s e-mail practices while running the department, concluding that she failed to seek legal approval for her use of a private e-mail server and that department staff would not have given its blessing because of the “security risks in doing so.” The inspector general found that Clinton’s use of private e-mail for public business was “not an appropriate method” of preserving documents and that her practices failed to comply with department policies meant to ensure that federal record laws are followed. The report says Clinton, who is the Democratic presidential front-runner, should have printed and saved her e-mails during her four years in office or surrendered her work-related correspondence immediately upon stepping down in February 2013. Instead, Clinton provided those records in December 2014, nearly two years after leaving office. The report found that a top Clinton aide was warned in 2010 that the system may not properly preserve records but dismissed those worries, indicating that the system passed legal muster. But the inspector general said it could not show evidence of a review by legal counsel.
benton.org/headlines/state-dept-inspector-general-report-sharply-criticizes-clintons-e-mail-practices | Washington Post
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STORIES FROM ABROAD

EU DATA TRANSFERS
[SOURCE: Financial Times, AUTHOR: Duncan Robinson]
Irish authorities have warned that a crucial data transfer arrangement relied on by Facebook, Google and Amazon potentially falls foul of European Union rules on privacy — threatening an “Armageddon of global data flows”, according to one lawyer. So-called “model contract clauses” are now used by thousands of multinational companies to allow them to transfer personal data — whether payslips or pictures — outside the EU, without breaching the bloc’s strict data protection rules. Many of the world’s biggest businesses turned to them in 2015, after the EU’s top court ruled against a similar transatlantic data transfer deal called “Safe Harbour”. For US technology groups in particular, transferring data across the Atlantic is a quicker and cheaper option than building a wholly independent operation within the EU. However, the model contract clauses they have adopted to make their transfers possible now potentially face a similar fate to Safe Harbour. Ireland’s Data Protection Commissioner has said it is passing on its concerns about them to the Irish courts — with a recommendation that the case is settled at the European Court of Justice. Irish regulators suggest that the clauses — in effect, boilerplate legal text approved by the European Commission — do not offer EU citizens suitable redress if they feel their rights have been impinged.
benton.org/headlines/facebook-data-transfers-threatened-eu-ruling | Financial Times | Wall Street Journal
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Court Rebukes FCC Over Long Delay in Updating US Media-Ownership Rules

A federal appeals court rebuked the Federal Communications Commission over the agency’s yearslong delay in updating its media-ownership rules. In a sharply worded ruling, the Third US Circuit Court of Appeals in Philadelphia threatened to toss out the government’s ownership rules altogether if the FCC doesn’t get its effort on track.

The opinion came in a broad legal challenge by broadcasters and others to the FCC’s handling of media-ownership rules. Throwing out the rules would be “the administrative-law equivalent of burning down the house to roast the pig, and we decline to order it,” said the opinion written by Judge Thomas Ambro. “However, we note that this remedy, while extreme, might be justified in the future if the Commission does not act quickly to carry out its legislative mandate.” The three-judge panel’s ruling is likely to accelerate the FCC’s efforts to update its rules, some of which are 40 years old.