May 2016

American TV Broadcasting Alliance: Clearing Target Exacerbates Vacant Channel Plan

The Advanced Television Broadcasting Alliance (ATBA) says the Federal Communications Commission's initial clearing target for the spectrum auction of 126 MHz, the most it had figured it could get, means that a quarter of low-power TVs and translator stations may not be able to find a new channel in the post-auction repack. That, they said, makes it even more important that the FCC not approve a proposal to reserve the last vacant channel in a market after those eligible for repacking -- which does not include LPTVs and translators -- are accommodated for unlicensed wireless, the so-called vacant channel proposal.

Branding that proposal the Google Whitespace Plan after the search giant's push for more TV "white spaces" for unlicensed, ATBA says the plan would be "devastating." "The post-auction environment will be challenging enough for LPTV and TV translators," said ATBA chairman and deputy general counsel of Gray Television Robert Folliard. "Google's vacant channel proposal would pour gasoline on the fire, leaving hundreds and potentially thousands of additional LPTV and TV Translators without a viable channel and depriving millions of viewers of free, over-the-air service that they currently rely. "

Dish Launches National Smartphone Repair Business

Expanding into a new line of business, Dish Network said it has deployed its national fleet of professional technicians to repair iPhones for consumers and business users, whether or not they get service from Dish. Covering all 50 states, Dish’s new Smart Phone Repair service will fix cracked screens and replace batteries on several Apple iPhone models, including the iPhone 5, 5c, 5s, 6 and 6 Plus. Dish currently doesn’t fix Android devices, but noted in its announcement that it plans to expand service to include other devices and smartphone accessories in the coming months.

Dish said the new service aims to eliminate the hassle and uncertainty of smartphone repair using transparent pricing and its pro techs, while using “high-quality replacement parts from respected third parties.” Dish sees its on-site capabilities as a key differentiator particularly in the area of convenience. Dish also outlined fixed pricing on its services, which include a $35 “Drive to Me” fee. For example, repairing a screen for an iPhone 6 Plus costs $184.99, while a battery replacement for a supported iPhone models costs $74.99.

Apple’s Plan for Refurbished iPhones Is Rejected in India

India has rejected Apple’s request to import and sell refurbished iPhones to the world’s second largest mobile population, a telecommunications ministry official said. Apple has been seeking permission to import and sell used phones to court price-conscious consumers with a similar proposal rejected in 2015 by the environment ministry. Apple’s rivals have mounted a public campaign against the effort, arguing that such a move would trigger a flood of used electronics while defeating the government’s Make-in-India program to encourage local manufacturing.

The decision is a setback for Apple, which has just 2 percent of Indian phone shipments but needs to tap new markets as global iPhone sales plateau. The US company is also seeking permission to open its first Indian retail stores, key to driving its brand in a market dominated by local vendors. That decision is pending.

Pirate Bay founder and Adblock maker offer web users a way to pay publishers

The Pirate Bay founder Peter Sunde is teaming up with the creators of the world’s most popular adblocker to give web users a way to make small donations for articles, music and videos they enjoy. The tie-up between Sunde’s startup Flattr and AdBlock Plus maker Eyeo, Flattr Plus is designed to solve a problem the companies claim has been present since the web’s invention 27 years ago. Rather than requiring users to allocate donations manually, Flattr Plus will automatically assign payments from a pool set by a user based on how much the use a particular site. The companies said the aim was to reach 10 million users each paying about $5 a month by 2017, at which point they say they would be able to pay out around $500 million to publishers. Flattr and Adblock will take a cut of around 10%.

Adblock Plus head of operations and communications Ben Williams said the 10 million user figure was “ambitious” but “not so far fetched” given Adblock Plus already had 500 million users who could be encouraged to sign up. He added that the idea was an attempt to find a “holistic solution” that complemented Adblock’s existing service. Williams said: “People forget a lot of times that the web was established as an information sharing platform. A public good. Advertising came second. Some of the early founders of the web tossed around the idea of having some direct way for users to fund content.” “What happened in place was advertising people, even adblockers, we all had the false impression that advertising is what pays for content online.” Eventually, Williams said, the plan was to integrate Flattr Plus into the Adblock software.

May 3, 2016 (TPP; Foreign Intelligence Surveillance Court)

BENTON'S COMMUNICATIONS-RELATED HEADLINES for TUESDAY, MAY 3, 2016

INTERNET/BROADBAND
   President Obama: The TPP would let America, not China, lead the way on global trade - President Obama op-ed
   What do Americans want Congress to do about net neutrality? - AEI op-ed [links to Benton summary]

OWNERSHIP
   As Obama’s term winds down, crackdowns on mergers speed up

LABOR
   Union Complains to FCC That Verizon Is Pressuring Phone Customers

GOVERNMENT & COMMUNICATIONS
   US spy court rejected zero surveillance orders in 2015
   Democratic Reps Push FCC's Wheeler on Public File Access Pledge
   Want to follow the money behind political ads? Good luck finding it - Baltimore Sun analysis [links to Benton summary]
   What is corruption? - analysis
   CIA 'live tweets' Osama bin Laden raid to mark five-year anniversary [links to Guardian, The]
   Modernizing public sector IT management - op-ed [links to Benton summary]

SECURITY/PRIVACY
   Sen Schumer wants probe into 'spying billboards' [links to Benton summary]
   Google and Microsoft have made a pact to protect surveillance capitalism - The Guardian analysis [links to Benton summary]
   The Critical Hole at the Heart of Our Cell Phone Networks [links to Benton summary]
   Researchers say there are serious security problems in Samsung’s SmartThings [links to Verge, The]
   20 Years Ago, Sen Leahy Became the First US Lawmaker to Use Encryption [links to Vice]
   Op-Ed: How Multifactor Authentication Can Play a Role in the Cybersecurity National Action Plan [links to nextgov]
   The government wants your fingerprint to unlock your phone. Should that be allowed?
   Op-Ed: Court order banning speech about a person (and banning gun possession by speaker) reversed [links to Washington Post]

EMERGENCY COMMUNICATION
   Verizon, AT&T and others sign Wireless Network Resiliency agreement, will cooperate during emergencies

WIRELESS/SPECTRUM
   Verizon, AT&T and others sign Wireless Network Resiliency agreement, will cooperate during emergencies
   Sprint Announces Wireless Lifeline Services Partnership with i-wireless - press release [links to Benton summary]
   T-Mobile, Comcast, tower firms could benefit from auction's spectrum scope, but challenges remain [links to Fierce]
   The Critical Hole at the Heart of Our Cell Phone Networks [links to Benton summary]

TELEVISION
   FCC set-top box plan raises alarms among House Judiciary leaders
   Op-Ed: Consumers Can’t Afford Obama’s Set-Top [links to Multichannel News]
   Hulu Plans Full Cable and Broadcast Channel Streaming [links to Benton summary]
   Vimeo buys VHX to build up its fledgling video subscription business [links to Revere Digital]

ELECTIONS & MEDIA
   How the shows you watch determine which candidates’ ads you see - research [links to Benton summary]
   Want to follow the money behind political ads? Good luck finding it - Baltimore Sun analysis [links to Benton summary]

CONTENT
   Radiohead tried (and failed) to erase itself from the Internet [links to Washington Post]
   Google’s test to let media publish directly in search can’t be great news for Twitter [links to Revere Digital]
   Australian Businessman Craig Wright Claims He Is the Founder of Bitcoin [links to USAToday]

RESEARCH
   What we learned about online nonprobability polls - Pew research [links to Benton summary]

DIVERSITY
   Is Racism to Blame for the Lack of Latinos in Media? op-ed [links to Huffington Post]

STORIES FROM ABROAD
   Brazilian judge orders mobile providers to block WhatsApp for 72 hours [links to Guardian, The]
   Internet Australia backs calls to end geoblocking as video-on-demand use increases [links to Guardian, The]
   Italy orders Facebook to hand over fake user account data to its alleged victim [links to Ars Technica]
   Eurocops get new cyber powers to hunt down terrorists, criminals [links to Ars Technica]

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INTERNET/BROADBAND

OBAMA OP-ED ON TPP
[SOURCE: Washington Post, AUTHOR: President Barack Obama]
[Commentary] As a Pacific power, the United States has pushed to develop a high-standard Trans-Pacific Partnership, a trade deal that puts American workers first and makes sure we write the rules of the road for trade in the 21st century. It keeps the Internet open and free. It strengthens the intellectual property protections our innovators need to take risks and create. And it levels the playing field by setting the highest enforceable standards and by removing barriers to selling our goods overseas — including the elimination of more than 18,000 taxes that other countries put on products made in America. The world has changed. The rules are changing with it. The United States, not countries like China, should write them. Let’s seize this opportunity, pass the Trans-Pacific Partnership and make sure America isn’t holding the bag, but holding the pen.
benton.org/headlines/president-obama-tpp-would-let-america-not-china-lead-way-global-trade | Washington Post
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OWNERSHIP

CRACKDOWNS ON MERGERS
[SOURCE: Washington Post, AUTHOR: Steven Mufson, Renae Merle]
Over the past year, a number of corporate giants have backed down in the face of Obama Administration pressure against mergers and acquisitions. On April 15, President Barack Obama issued an executive order ordering all agencies to submit within 30 days a list of actions they could take to “enhance competition.” The Obama Administration has become increasingly aggressive at enforcing antitrust rules after a relatively slow start. With Obama’s presidency nearing an end, the administration appears to be taking stock and returning to the ideas on which he campaigned. In a 2007 speech, then-Sen. Barack Obama (D-IL) lambasted President George W. Bush for “what may be the weakest record of antitrust enforcement of any administration in the last half century.” But seven years into his own presidency, President Obama has challenged only slightly more mergers than President Bush did. Moreover, the Obama Administration has been unable to slow the pace of industry consolidation. The value of merger deals in the United States reached a new high in 2015 of $2.3 trillion, according to the data company Dealogic. The number of transactions announced in 2012 — 12,323 — also set an record, fueled by a combination of low interest rates and sluggish economic growth. The mergers have rolled across almost every industry, from technology to commercial dry cleaners, from airlines to beer. And more and more industries are dominated by two or three players.
benton.org/headlines/obamas-term-winds-down-crackdowns-mergers-speed | Washington Post
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LABOR

VERIZON AND FIBER
[SOURCE: New York Times, AUTHOR: Patrick McGeehan]
The Communications Workers of America, the union representing thousands of striking Verizon workers, Common Cause and Citizen Action of New York plan to complain to federal regulators about the tactics Verizon uses to persuade customers to switch their home phone service to fiber-optic lines. In an informal complaint to be filed with the Federal Communications Commission, the union and consumer groups contend that Verizon is engaged in “institutional deception” because it sends out workers with no intention of repairing old-fashioned copper telephone wires. Verizon has made it clear that it would prefer to invest in expanding its fiber network instead of maintaining the copper lines. When customers have trouble with their traditional home phone service, the complaint says, the company advises its workers to tell customers that “fiber is the only fix.” Customers who refuse to switch to fiber are often told that their service could be disconnected within 20 days, the complaint says. Verizon executives said the complaint was a bargaining tactic and denied that the company had any intention of deceiving customers, including those who resist entreaties to switch to fiber.
benton.org/headlines/union-complains-fcc-verizon-pressuring-phone-customers | New York Times
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GOVERNMENT & COMMUNICATIONS

US FISC REJECTED ZERO SURVEILLANCE ORDERS IN 2015
[SOURCE: Reuters, AUTHOR: Dustin Volz]
The secretive US Foreign Intelligence Surveillance Court did not deny a single government request in 2015 for electronic surveillance orders granted for foreign intelligence purposes, continuing a longstanding trend, a Justice Department document showed. The court received 1,457 requests in 2015 on behalf of the National Security Agency and the Federal Bureau of Investigation for authority to intercept communications, including e-mail and phone calls, according to a Justice Department memo sent to leaders of relevant congressional committees April 29. The court did not reject any of the applications in whole or in part, the memo showed. The total represented a slight uptick from 2014, when the court received 1,379 applications and rejected none. The court modified 80 applications in 2015, a more than fourfold increase from the 19 modifications made in 2014. The memo also stated that 48,642 national security letter (NSL) requests were made in 2015 by the FBI.
benton.org/headlines/us-spy-court-rejected-zero-surveillance-orders-2015 | Reuters
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DEMOCRATIC REPS PUSH WHEELER ON PUBLIC FILE ACCESS PLEDGE
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
A quartet of powerful Democratic Reps has asked Federal Communications Commission Chairman Tom Wheeler to act on a pledge they say he made to their caucus recently and make TV station public inspection files—and cable, satellite and radio files when the requirement kicks in for them—machine readable so they can be more easily searched and inspected. That came in a letter dated April 29 from House Commerce Committee Ranking Member Frank Pallone (D-NJ), House Communications Subcommittee Ranking Member Anna Eshoo (D-CA), and two of the most prominent voices on the issue of public file and political ad disclosure transparency, Rep Ben Ray Luján (D-NM) and Rep John Yarmuth (D-KY). They urged Chairman Wheeler to begin the process "in the near term" and that they agree with the chairman that the FCC "can and should" take action. The Reps, who have been pushing for more transparency on political ads and their funders in particular, said they were encouraged by Chairman Wheeler's "specific commitment" to make public files machine readable. TV stations have to upload those files to an FCC database, but do not have to make them machine readable.
benton.org/headlines/democratic-reps-push-fccs-wheeler-public-file-access-pledge | Broadcasting&Cable
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WHAT IS CORRUPTION?
[SOURCE: Washington Post, AUTHOR: Robert Gebelhoff]
[Commentary] What exactly is corruption? Political scientists have identified three variants of the concept emerging from the legal world: quid pro quo corruption, monetary influence and distortion. Each flavor of corruption is neatly featured in the 2016 campaign season. Sen Ted Cruz (R-TX) has long held campaign finance reform as an “assault on free speech.” Hillary Clinton wants to overturn Citizens United but doesn’t think money from private groups (including her speaking fees from Goldman Sachs) corrupts politicians. And both Sen Bernie Sanders (I-VT) and Donald Trump condemn the distortion of the political system by powerful people and promise to overthrow the whole system if elected. (Meanwhile, Gov John Kasich (R-OH) supports whatever system will let him win). The debate really comes down to a tug of war between political equality and free speech. How much influence should one person’s voice have over another’s? What role should our legal system play in protecting political equality, and how can it do that best?
benton.org/headlines/what-corruption | Washington Post
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SECURITY/PRIVACY

GOVT WANTS YOUR FINGERPRINT TO UNLOCK YOUR PHONE
[SOURCE: Los Angeles Times, AUTHOR: Matt Hamilton, Richard Winton]
As the world watched the FBI spar with Apple this winter in an attempt to hack into a San Bernardino (CA) shooter's iPhone, federal officials were quietly waging a different encryption battle in a Los Angeles courtroom. There, authorities obtained a search warrant compelling the girlfriend of an alleged Armenian gang member to press her finger against an iPhone that had been seized from a Glendale home. The phone contained Apple's fingerprint identification system for unlocking, and prosecutors wanted access to the data inside it. It marked a rare time that prosecutors have demanded a person provide a fingerprint to open a computer, but experts expect such cases to become more common as cracking digital security becomes a larger part of law enforcement work. The Glendale case and others like it are forcing courts to address a basic question: How far can the government go to obtain biometric markers such as fingerprints and hair?
benton.org/headlines/government-wants-your-fingerprint-unlock-your-phone-should-be-allowed | Los Angeles Times | The Hill | ars technica
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EMERGENCY COMMUNICATION

WIRELESS NETWORK RESILIENCE AGREEMENT
[SOURCE: Fierce, AUTHOR: Colin Gibbs]
The nation's five largest mobile carriers are backing an initiative that would help them to share information and fix network outages during disasters and other emergencies. Verizon, AT&T, T-Mobile, Sprint and US Cellular signed on to the Wireless Network Resiliency Cooperative Framework, which is aimed at providing reasonable arrangements for roaming, fostering mutual aid, enhancing government agencies' preparedness and restoration, and improving public awareness of service and restoration status during emergencies. The pact is the result of five months of discussions among CTIA, Federal Communications Commission Chairman Tom Wheeler, and Rep Frank Pallone (D-NJ), who late in 2015 introduced the Securing Access to Networks in Disasters Act. The SANDy Act, which was approved recently by the Energy and Commerce Committee, was created to improve the resiliency of US communications networks during emergencies. The bill is a response to the breakdown of telecommunication networks during and after Hurricane Sandy, which slammed into the Northeast US in October 2012.
benton.org/headlines/verizon-att-and-others-sign-wireless-network-resiliency-agreement-will-cooperate-during | Fierce
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TELEVISION

FCC SET-TOP BOX PLAN RAISES ALARMS AMONG HOUSE JUDICIARY LEADERS
[SOURCE: The Hill, AUTHOR: David McCabe]
The top lawmakers the House Judiciary Committee are worried that a Federal Communications Commission proposal to open up the market for the set-top boxes that consumers use to watch television could lead to "an expansion" in the distribution of pirated content. In the letter to FCC Chairman Tom Wheeler, House Judiciary Committee Chairman Bob Goodlatte (R-VA) and Ranking Member John Conyers (D-MI) said they are concerned “that the proposal could lead to an expansion in the unauthorized distribution of copyrighted works.” They cited some in the creative community who have raised alarms over the way they say the proposal would expose their work to piracy. “If the FCC decides to continue to pursue this rulemaking, we urge it to ensure that the marketplace of legal copyrighted works is not harmed by such actions,” Chairman Goodlatte and Ranking Member Conyers wrote in the letter. “In addition the video marketplace has evolved significantly over the past ten years with new entrants and innovation. We will continue to remain watchful to ensure that any proposed FCC regulations are appropriate and promote, rather than inhibit, future innovation and competition in this important marketplace, and that any proposed regulations do not impose a disproportionate burden on smaller or rural providers.”
benton.org/headlines/fcc-set-top-box-plan-raises-alarms-among-house-judiciary-leaders | Hill, The | ars technica
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As Obama’s term winds down, crackdowns on mergers speed up

Over the past year, a number of corporate giants have backed down in the face of Obama Administration pressure against mergers and acquisitions. On April 15, President Barack Obama issued an executive order ordering all agencies to submit within 30 days a list of actions they could take to “enhance competition.”

The Obama Administration has become increasingly aggressive at enforcing antitrust rules after a relatively slow start. With Obama’s presidency nearing an end, the administration appears to be taking stock and returning to the ideas on which he campaigned. In a 2007 speech, then-Sen. Barack Obama (D-IL) lambasted President George W. Bush for “what may be the weakest record of antitrust enforcement of any administration in the last half century.” But seven years into his own presidency, President Obama has challenged only slightly more mergers than President Bush did. Moreover, the Obama Administration has been unable to slow the pace of industry consolidation. The value of merger deals in the United States reached a new high in 2015 of $2.3 trillion, according to the data company Dealogic. The number of transactions announced in 2012 — 12,323 — also set an record, fueled by a combination of low interest rates and sluggish economic growth. The mergers have rolled across almost every industry, from technology to commercial dry cleaners, from airlines to beer. And more and more industries are dominated by two or three players.

Union Complains to FCC That Verizon Is Pressuring Phone Customers

The Communications Workers of America, the union representing thousands of striking Verizon workers, Common Cause and Citizen Action of New York plan to complain to federal regulators about the tactics Verizon uses to persuade customers to switch their home phone service to fiber-optic lines.

In an informal complaint to be filed with the Federal Communications Commission, the union and consumer groups contend that Verizon is engaged in “institutional deception” because it sends out workers with no intention of repairing old-fashioned copper telephone wires. Verizon has made it clear that it would prefer to invest in expanding its fiber network instead of maintaining the copper lines. When customers have trouble with their traditional home phone service, the complaint says, the company advises its workers to tell customers that “fiber is the only fix.” Customers who refuse to switch to fiber are often told that their service could be disconnected within 20 days, the complaint says. Verizon executives said the complaint was a bargaining tactic and denied that the company had any intention of deceiving customers, including those who resist entreaties to switch to fiber.

President Obama: The TPP would let America, not China, lead the way on global trade

[Commentary] As a Pacific power, the United States has pushed to develop a high-standard Trans-Pacific Partnership, a trade deal that puts American workers first and makes sure we write the rules of the road for trade in the 21st century. It keeps the Internet open and free. It strengthens the intellectual property protections our innovators need to take risks and create. And it levels the playing field by setting the highest enforceable standards and by removing barriers to selling our goods overseas — including the elimination of more than 18,000 taxes that other countries put on products made in America. The world has changed.

The rules are changing with it. The United States, not countries like China, should write them. Let’s seize this opportunity, pass the Trans-Pacific Partnership and make sure America isn’t holding the bag, but holding the pen.