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May 2016

May 2, 2016 (The Wonderful World of Wireless)

BENTON'S COMMUNICATIONS-RELATED HEADLINES for MONDAY, MAY 2, 2016

World Summit on the Information Society https://www.benton.org/calendar

WIRELESS, WIRELESS, WIRELESS
   FCC Sets 126 MHz Initial Clearing Target for Incentive Auction; Reverse Clock Bidding Begins May 31 - public notice
   FCC Seeks Comment On The State Of Mobile Wireless Competition - public notice
   CBO Scores Making Opportunities for Broadband Investment and Limiting Excessive and Needless Obstacles to Wireless - research
   What level of competition intensity maximises investment in the wireless industry? - research
   Rural Operators Could Find Opportunity in CBRS Auction Plans Adopted by FCC [links to Benton summary]
   Developer: Big Improvements in TV White Spaces Economics Coming Soon [links to telecompetitor]
   Roaming fees in Europe get cheaper on April 30th before vanishing next year [links to Verge, The]
   Crossing the New Digital Divide: Connecting to Mobile Economic Empowerment - research

OWNERSHIP
   Everyone Wants to Get Tough on Antitrust Policy, but Not Really - Chris Sagers op-ed [links to Benton summary]
   The backstory of Gannett’s bid to buy Tribune [links to Columbia Journalism Review]
   Amid Media Megamergers, A Mosaic of Community Media Thrives - Democracy Now [links to Benton summary]
   China Wants to Own Small Stake in Web Firms [links to Wall Street Journal]

PRIVACY
   FCC Declines Broadband Privacy Comment Extension [links to Federal Communications Commission]

SECURITY
   CBO Scores MEGABYTE Act - H.R. 4904 [links to Congressional Budget Office]

JOURNALISM
   In Chicago, two brothers are using Instagram to engage new audiences for investigative reporting [links to Columbia Journalism Review]

ELECTIONS AND MEDIA
   Sen Sanders supporters hound FCC with complaints about media bias [links to Benton summary]
   Covering the Race for President: The Donald Trump Edition [links to Huffington Post]
   Opinion: Why we can no longer laugh about the Trumps’ media obsession [links to Washington Post]
   Analysis: Texas AG refuses to defend Texas ban on using legislative footage in political ads [links to Washington Post]

TELEVISION
   Digital TV company Rovi is buying TiVo in $1.1 billion deal [links to Benton summary]
   Chairman Wheeler: Comcast’s TV app proves the FCC is right about set-top boxes [links to Benton summary]
   Comcast hits back at FCC chair on box comments [links to Benton summary]
   Consumer Voices Speak Up for FCC's Set-Top Proposal [links to Broadcasting&Cable]
   Jessell editorial: Wireless Cable -- It Could Work With ATSC 3.0 [links to TVNewsCheck]

CONTENT
   How You’re Making Facebook a Money Machine [links to Benton summary]

HEALTH
   Teen birthrate hits all-time low, led by 50 percent decline among Hispanics and blacks

LABOR
   Verizon makes 'last' offer to striking workers [links to Benton summary]

GOVERNMENT & COMMUNICATIONS
   What President Obama and his staff still don’t get about ‘new’ media - analysis [links to Benton summary]

POLICYMAKERS
   Former Montana Sen Conrad Burns [links to Benton summary]

STORIES FROM ABROAD
   Roaming fees in Europe get cheaper on April 30th before vanishing next year [links to Verge, The]
   China Wants to Own Small Stake in Web Firms [links to Wall Street Journal]
   Al Jazeera Ejected From Baghdad [links to Broadcasting&Cable]

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WIRELESS, WIRELESS, WIRELESS

FCC SETS INCENTIVE AUCTION CLEARING TARGET; REVERSE CLOCK BIDDING BEGINS MAY 31
[SOURCE: Federal Communications Commission, AUTHOR: Public Notice]
By this Public Notice, the Federal Communications Commission’s Incentive Auction Task Force and the Wireless Telecommunications Bureau announce the 126 megahertz initial spectrum clearing target that has been set by the Auction System’s initial clearing target determination procedure and the associated band plan for the initial stage of the incentive auction, as well as the number of Category 1 and Category 2 generic license blocks in each Partial Economic Area (PEA) that will be offered in the initial stage during the forward auction (Auction 1002). We also announce that we will be sending a confidential letter (the Final Confidential Status Letter) to inform each applicant that was permitted to make an initial commitment in the reverse auction (Auction 1001) of its status with respect to the clock phase of the reverse auction. Finally, we provide details and specific dates regarding the availability of educational materials and the bidding in the clock phase of the reverse auction. Auction 1001 will begin on May 31, 2016. Federal Communications Commission Chairman Tom Wheeler said, "Robust broadcaster participation is key to the success of the Incentive Auction. Today’s announcement reflects the voluntary decision by many broadcasters that this auction truly is a once-in-a-lifetime opportunity. The 126 MHz initial clearing target ensures that wireless carriers and other forward auction bidders have their chance to compete for the maximum amount of lowband ‘beachfront’ spectrum. The wireless industry has said it needs additional spectrum to meet growing customer demand and usher in the age of 5G. The broadcasters have stepped up and done their part to fulfill that demand. I look forward to a robustly competitive auction and the vast economic and consumer benefits that await.”
benton.org/headlines/fcc-sets-126-mhz-initial-clearing-target-incentive-auction-reverse-clock-bidding-begins | Federal Communications Commission | Wheeler Statement | Broadcasting&Cable | New York Times | The Hill | CommLawBlog | B&C
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FCC SEEKS COMMENT ON THE STATE OF MOBILE WIRELESS COMPETITION
[SOURCE: Federal Communications Commission, AUTHOR: Public Notice]
This Public Notice solicits input on competition in the mobile wireless marketplace for the Federal Communications Commission’s (the Commission) Nineteenth Annual Report on the State of Competition in Mobile Wireless, including Commercial Mobile Radio Services (Nineteenth Report). The Communications Act requires the submission to Congress each year of reports analyzing competitive conditions with respect to commercial mobile services. On December 23, 2015, the Wireless Telecommunications Bureau released the Eighteenth Mobile Wireless Competition Report. With this Public Notice, the Bureau seeks to update the information and metrics used in the Eighteenth Report for our analysis of competition in the mobile wireless marketplace for the Nineteenth Report. This Public Notice seeks comment and information on competitive dynamics within the mobile wireless marketplace regarding, for example, the number of subscribers and financial indicators, such as revenue or profitability. In addition, we seek comment and information on overall industry metrics such as coverage, including by spectrum band, technology, geography, and demographics. We also seek comment and information on upstream (e.g., spectrum) segments as well as on consumer behavior regarding mobile wireless services, including consumer usage, handsets, mobile applications, and intermodal developments, such as mobile-wireline substitution. Further, we seek comment and information on pricing levels and trends and other non-price factors on which service providers compete, as well as on performance metrics for mobile broadband networks, such as speed and latency, including the methodologies used for assessment. Finally, we also ask parties to comment on whether the metrics provided in the Eighteenth Report were sufficient for analyzing competition in the mobile wireless marketplace in a useful and timely manner, or whether any changes should be made for the metrics to be included in the Nineteenth Report. All interested parties may file comments on or before May 31, 2016 and reply comments on or before June 15, 2016.
benton.org/headlines/fcc-seeks-comment-state-mobile-wireless-competition-0 | Federal Communications Commission
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CBO SCORES WIRELESS BILL
[SOURCE: Congressional Budget Office, AUTHOR: Kathleen Gramp, Rachel Austin, Logan Smith]
The Making Opportunities for Broadband Investment and Limiting Excessive and Needless Obstacles to Wireless Act (S. 2555) would authorize federal agencies to implement various programs and measures related to management of the electromagnetic spectrum. It would direct federal agencies to prepare reports, develop information for firms that provide telecommunications services, award prizes for advanced technologies, and ensure that certain radio frequencies are made available for commercial uses. The bill also would establish terms and conditions under which state and local governments may assess taxes or fees on certain telecommunication services. CBO estimates that implementing the bill would cost $85 million over the 2017-2021 period, subject to appropriation of the necessary amounts, mainly to develop new data systems and carry out spectrum management activities. CBO also estimates that enacting S. 2555 would increase net direct spending by $135 million over the 2017-2026 period, primarily as a result of provisions that would accelerate spending related to making federal spectrum available for commercial use. Because enacting the bill would affect direct spending, pay-as-you-go procedures apply. Enacting S. 2555 would not affect revenues. CBO estimates that enacting the legislation would not increase net direct spending or on-budget deficits by more than $5 billion in any of the four consecutive 10-year periods beginning in 2027.
benton.org/headlines/cbo-scores-making-opportunities-broadband-investment-and-limiting-excessive-and-needless | Congressional Budget Office
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COMPETITION AND INVESTMENT IN WIRELESS
[SOURCE: Telecommunications Policy, AUTHOR: Georges Vivien Houngbonona, François Jeanjean]
This paper investigates the relationship between competition and investment in the wireless industry from a dynamic perspective. Using firm level data and instrumental variable estimation strategy, it finds that the relationship is inverted-U shaped. The investment maximising intensity of competition is reached when operators' gross profits represent 37 or 40 per cent of their revenues, depending on whether capital expenditures are normalised by the number of subscribers. This finding means that investment increases with competition as long as operators' profits are above the thresholds of 37 or 40 per cent of their revenues. Under these thresholds, there is a tradeoff between competition and investment. The paper also finds a significant long run effect of competition on investment which amplifies the short run effect by a factor of 3–4.
benton.org/headlines/what-level-competition-intensity-maximises-investment-wireless-industry | Telecommunications Policy
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CROSSING THE NEW DIGITAL DIVIDE
[SOURCE: Mobile Future, AUTHOR: ]
A new nationwide poll, “Crossing the New Digital Divide: Connecting to Mobile Economic Empowerment,” identifies a significant gap between African-Americans’ enthusiastic embrace of mobile technology as consumers and the community’s ability to recognize and capitalize on mobile technology as a vital tool for economic empowerment. The survey, conducted for Mobile Future by Cornell Belcher, president of brilliant corners Research & Strategies, surveyed 800 African-Americans nationwide to gain an understanding of why this gap exists and how to create future opportunities for diverse communities. Some of the survey's findings:
Progress on Access: 72% say they live in households with three or more connected devices.
Engaged consumers. A full 79% of respondents say mobile technology makes their lives easier. And, 68% say they use their smartphones frequently—either multiple times a day (43%) or multiple times an hour (25%).
Lack of Skills/Awareness: A majority (53%) identify lack of skills and low awareness of mobile tech economic opportunities as the biggest barriers to participation.
Local, Affordable Training Can Help: Low-cost training (47%) offered in communities (31%) and schools (26%) would increase interest in mobile tech careers.
Significant Gender Gap: African-American women were far less likely to be interested in mobile tech jobs. For example, while 45% of men expressed interest in becoming mobile app developers, just 31% of women said the same.
benton.org/headlines/crossing-new-digital-divide-connecting-mobile-economic-empowerment | Mobile Future | telecompetitor
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HEALTH

TEEN BIRTHRATE HITS ALL-TIME LOW
[SOURCE: Washington Post, AUTHOR: Ariana Eunjung Cha]
The birthrate among American teenagers, at crisis levels in the 1990s, has fallen to an all-time low, according to an analysis released by the Centers for Disease Control and Prevention. The decline of the past decade has occurred in all regions in the country and among all races. But the most radical changes have been among Hispanic and black teens, whose birthrates have dropped nearly 50 percent since 2006. Theories on the reasons for the dramatic shift include everything from new approaches to sex education to the widespread availability of broadband Internet. An intriguing study looked at the impact of the Internet and concluded that at least 13 percent of the total decline between 1999 and 2007 might be explained by the increasing availability of broadband Internet. Researchers theorized that being online could help provide teens other means of exploring relationships and finding advice about effective forms of contraception, in addition to obtaining information about options for ending unwanted pregnancies.
benton.org/headlines/teen-birthrate-hits-all-time-low-led-50-percent-decline-among-hispanics-and-blacks | Washington Post
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FCC Sets 126 MHz Initial Clearing Target for Incentive Auction; Reverse Clock Bidding Begins May 31

By this Public Notice, the Federal Communications Commission’s Incentive Auction Task Force and the Wireless Telecommunications Bureau announce the 126 megahertz initial spectrum clearing target that has been set by the Auction System’s initial clearing target determination procedure and the associated band plan for the initial stage of the incentive auction, as well as the number of Category 1 and Category 2 generic license blocks in each Partial Economic Area (PEA) that will be offered in the initial stage during the forward auction (Auction 1002).

We also announce that we will be sending a confidential letter (the Final Confidential Status Letter) to inform each applicant that was permitted to make an initial commitment in the reverse auction (Auction 1001) of its status with respect to the clock phase of the reverse auction. Finally, we provide details and specific dates regarding the availability of educational materials and the bidding in the clock phase of the reverse auction. Auction 1001 will begin on May 31, 2016. Federal Communications Commission Chairman Tom Wheeler said, "Robust broadcaster participation is key to the success of the Incentive Auction. Today’s announcement reflects the voluntary decision by many broadcasters that this auction truly is a once-in-a-lifetime opportunity. The 126 MHz initial clearing target ensures that wireless carriers and other forward auction bidders have their chance to compete for the maximum amount of lowband ‘beachfront’ spectrum. The wireless industry has said it needs additional spectrum to meet growing customer demand and usher in the age of 5G. The broadcasters have stepped up and done their part to fulfill that demand. I look forward to a robustly competitive auction and the vast economic and consumer benefits that await.”

FCC Seeks Comment On The State Of Mobile Wireless Competition

This Public Notice solicits input on competition in the mobile wireless marketplace for the Federal Communications Commission’s (the Commission) Nineteenth Annual Report on the State of Competition in Mobile Wireless, including Commercial Mobile Radio Services (Nineteenth Report).

The Communications Act requires the submission to Congress each year of reports analyzing competitive conditions with respect to commercial mobile services. On December 23, 2015, the Wireless Telecommunications Bureau released the Eighteenth Mobile Wireless Competition Report. With this Public Notice, the Bureau seeks to update the information and metrics used in the Eighteenth Report for our analysis of competition in the mobile wireless marketplace for the Nineteenth Report. This Public Notice seeks comment and information on competitive dynamics within the mobile wireless marketplace regarding, for example, the number of subscribers and financial indicators, such as revenue or profitability. In addition, we seek comment and information on overall industry metrics such as coverage, including by spectrum band, technology, geography, and demographics. We also seek comment and information on upstream (e.g., spectrum) segments as well as on consumer behavior regarding mobile wireless services, including consumer usage, handsets, mobile applications, and intermodal developments, such as mobile-wireline substitution. Further, we seek comment and information on pricing levels and trends and other non-price factors on which service providers compete, as well as on performance metrics for mobile broadband networks, such as speed and latency, including the methodologies used for assessment. Finally, we also ask parties to comment on whether the metrics provided in the Eighteenth Report were sufficient for analyzing competition in the mobile wireless marketplace in a useful and timely manner, or whether any changes should be made for the metrics to be included in the Nineteenth Report.

All interested parties may file comments on or before May 31, 2016 and reply comments on or before June 15, 2016.

Everyone Wants to Get Tough on Antitrust Policy, but Not Really

[Commentary] The White House recently issued an executive order, supported by a report from the Council of Economic Advisers, discovering that monopoly is on the rise and directing federal agencies to look for ways to bolster competition and control specific anti-competitive abuses. The order, however, is all rather frustrating to those toiling in the regrettably dusty precincts of antitrust policy, especially coming from a president who so raised our hopes.

In his first presidential campaign, President Obama promised to direct his Administration “to reinvigorate antitrust enforcement,” since “antitrust is the American way to make capitalism work for consumers.” It would be frustrating enough that the initiative seems certain of fairly complete failure, for reasons backed by a hundred years of history and evidence. It is directed to sector-specific federal agencies, which by and large have no antitrust enforcement power and have almost always used their powers to keep competition at bay. Moreover, initiatives under the order will probably be piecemeal, small and easily evaded. Consider what apparently is the sole initiative the government has planned so far, a call on the Federal Communications Commission to regulate cable TV boxes. (A request to be made by that stalwart champion of the consumer interest, the Commerce Department.) Those boxes may be overpriced, but will controlling that one little thing really keep cable companies from making it up somewhere else? The Justice Department just recently approved another very big merger, Charter Communications’ acquisitions of Time Warner Cable and Bright House Networks, in a very concentrated and troubled industry. It was a move opposed by a whole coalition of consumer groups because it creates a national duopoly controlling 90 percent of high-speed broadband. In the end, this move keeps alive an old criticism of American competition policy. We all — across the political spectrum — are quite certain we want to have an antitrust law and to speak of it with due reverence. The one thing most of us really don’t want to do is actually use it. Politically, it would have been better for the president’s legacy just to have continued quietly doing nothing than to come out and admit it.

[Chris Sagers is James A. Thomas Distinguished Professor of Law at Cleveland State University.]

CBO Scores Making Opportunities for Broadband Investment and Limiting Excessive and Needless Obstacles to Wireless

The Making Opportunities for Broadband Investment and Limiting Excessive and Needless Obstacles to Wireless Act (S. 2555) would authorize federal agencies to implement various programs and measures related to management of the electromagnetic spectrum. It would direct federal agencies to prepare reports, develop information for firms that provide telecommunications services, award prizes for advanced technologies, and ensure that certain radio frequencies are made available for commercial uses. The bill also would establish terms and conditions under which state and local governments may assess taxes or fees on certain telecommunication services.

CBO estimates that implementing the bill would cost $85 million over the 2017-2021 period, subject to appropriation of the necessary amounts, mainly to develop new data systems and carry out spectrum management activities. CBO also estimates that enacting S. 2555 would increase net direct spending by $135 million over the 2017-2026 period, primarily as a result of provisions that would accelerate spending related to making federal spectrum available for commercial use. Because enacting the bill would affect direct spending, pay-as-you-go procedures apply. Enacting S. 2555 would not affect revenues. CBO estimates that enacting the legislation would not increase net direct spending or on-budget deficits by more than $5 billion in any of the four consecutive 10-year periods beginning in 2027.

Sen Sanders supporters hound FCC with complaints about media bias

Sen Bernie Sanders supporters have hounded federal regulators with allegations about bias in the media. A review of about 850 complaints to the Federal Communications Commission about the three major cable news networks throughout the campaign season found that one of the most popular objections came against CNN in the days after the first Democratic debate last October.

In what looked to be a coordinated effort, more than 160 complaints alleging CNN bias in favor of Hillary Clinton were filed. The complaints pushed a now-debunked story claiming the cable news network deleted favorable polling that showed Bernie Sanders won the debate. “CNN hosting the debate while backing Hillary Clinton. There [sic] phony polls and editing of the debate,” read one October complaint to the FCC originating from Layton Utah. “Bernie Sanders not getting a fair shot!”

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