BENTON'S COMMUNICATIONS-RELATED HEADLINES for TUESDAY, JULY 26, 2016
Mobile and Digital Inclusion to be discussed in Philadelphia today https://www.benton.org/calendar/2016-07-26
OWNERSHIP
Yahoo’s Sale to Verizon Ends an Era for a Web Pioneer
$4.8 Billion Verizon Yahoo Purchase Shows Carrier Determined Not To Be a “Dumb Pipe” - analysis
Why Verizon wants to buy an ailing Yahoo: it wants to own a fat chunk of the online-content industry [links to Washington Post]
Verizon-Yahoo Merger Won’t Repeat AOL-Time Warner’s ‘Massive Failure,’ Analyst Says [links to Wrap, The]
With Verizon Deal, Yahoo and AOL Are Finally Together [links to AdWeek]
Here's a Timeline of Yahoo's 22-Year History as a Digital Pioneer [links to AdWeek]
With its takeover of Yahoo, Verizon becomes king of the internet for “the olds” [links to Quartz]
Privacy Groups Not Saying 'Yahoo!' Over Verizon Deal [links to Broadcasting&Cable]
Advocates say Verizon-Yahoo deal shows need for privacy rules [links to Hill, The]
With Yahoo Acquisition, Verizon Hopes To Grow Its New Media Empire [links to Fast Company]
Verizon Strengthens 5 Major Areas Following Its Acquisition of Yahoo [links to AdWeek]
AOL’s Tim Armstrong says ‘scale is imperative’ in the Verizon-Yahoo deal [links to Revere Digital]
Marissa Mayer weighs in on the sale of Yahoo [links to Washington Post]
Sprint's CEO says deals like Verizon's Yahoo purchase never work out [links to Revere Digital]
Commentary: Yahoo, a Web Pioneer, Cleared the Way for Many Innovations [links to New York Times]
Going to the movies: AMC buys Carmike in sweetened $1.2 billion offer [links to USAToday]
ELECTION 2016
Clinton campaign — and some cyber experts — say Russia is behind email release
E-mails show Debbie Wasserman Schultz pressured ‘Morning Joe’ — to no avail
What does the US government know about Russia and the DNC hack? - Brookings analysis [links to Benton summary]
New evidence suggests DNC hackers penetrated deeper than previously thought [links to Ars Technica]
Experts: Hard to prove Russians behind DNC hack [links to USAToday]
Examining Russia's Role In Leaked Democratic Party Emails [links to National Public Radio]
How Putin Weaponized Wikileaks to Influence the Presidential Election [links to Defense One]
In Hacked D.N.C. Emails, a Glimpse of How Big Money Works [links to New York Times]
To Democrats, Email Hack Suggests Trump Has New Supporter: Putin [links to New York Times]
Amid DNC email scandal, Bernie Sanders gets sympathy from conservative media [links to Washington Post]
A Look At Donald Trump's Ties To Russia [links to National Public Radio]
Why we don’t count to 10 before hitting ‘send.’ [links to Washington Post]
Opinion: Why the Democratic Party cyberhack matters [links to Washington Post]
Tech Is Prominent in GOP Platform, but Trump’s Silence Speaks Volumes [links to Benton summary]
Internet Association Policy Platform Has Some Overlap, Conflicts with GOP’s [links to Benton summary]
If it doesn’t already, Silicon Valley will probably learn to really like Tim Kaine [links to Benton summary]
Donald Trump Campaign Buys Twitter Hashtag in Focus on Digital [links to Wall Street Journal]
Donald Trump is hosting a Reddit AMA during the Democratic National Convention [links to Verge, The]
Strong Finish for GOP Convention as Trump Speech Draws 30.8 Million Viewers [links to AdAge]
Trump on Ailes: 'A lot of people are thinking he's going to run my campaign' [links to Politico]
Why Silicon Valley is so terrified of Donald Trump [links to Business Insider]
Many in tech squarely behind Clinton on eve of DNC [links to USAToday]
The 10 TV and Radio Markets Where Pro-Clinton PACs Are Spending Big Next [links to AdAge]
Hillary Clinton is launching a game-style mobile app for campaign volunteers [links to Revere Digital]
CNN, ABC cut ties with Donna Brazile, freeing her up for DNC job [links to Politico]
INTERNET/BROADBAND
Frontier sued for alleged misuse of $40.5 Million in federal broadband stimulus funds
Thanks to Wilson (NC), Tiny Rural Pinetops (NC) Is A Gigabit City - CLIC [links to Benton summary]
Sen Fischer: Small Cable Operators Make Big Difference [links to Broadcasting&Cable]
WIRELESS/SPECTRUM
A Path for Mobility Fund Phase II? - FCC Commissioner O'Rielly
How Spectrum Enables Agencies to Fight Wildfires - NTIA blog [links to Benton summary]
Google Maps is testing a Wi-Fi-only mode to help users save data [links to Verge, The]
Op-ed: Here comes 5G — but first, a reality check [links to Revere Digital]
SATELLITE
Companies are flooding Earth’s orbit with satellites, but no one’s directing traffic [links to Washington Post]
Why did Iran destroy 100,000 satellite dishes? [links to Christian Science Monitor]
TELECOM
FCC Approves Telcordia As the Next Local Number Portability Administrator - press release
GOVERNMENT & COMMUNICATIONS
Technology Is Monitoring the Urban Landscape [links to Benton summary]
To the dismay of government contractors, the United States Digital Service is gloriously hacking away in the VA and the Pentagon [links to Medium]
Thank You For Your (US Digital) Service [links to Medium]
PK: Not the Agency You’re Looking For: The Copyright Office’s Misguided Antitrust Adventure [links to Public Knowledge]
Gov Tech Companies Are Finding a Business Model [links to Government Technology]
How some recent FOIA news could help—and limit—access to government records [links to Columbia Journalism Review]
CIVIC ENGAGEMENT
Roslyn Layton on orchestrated “clicktivism” campaigns for network neutrality [links to American Enterprise Institute]
JOURNALISM
The Case Against the Media. By the Media. [links to New York]
Who Will Lead Fox News in the Post-Ailes Era? That's the billion dollar question [links to AdWeek]
EMERGENCY COMMUNICATIONS
AT&T officially throws hat into the ring for FirstNet [links to Fierce]
TELEVISION
Commissioner Clyburn: No 'Rush' on Set-Top Proposal [links to Broadcasting&Cable]
Netflix’s cable box deal with Comcast won’t exempt it from data caps [links to Benton summary]
Professors Warn Library of Congress of Copyright Office Overreach on Unlocking the Box [links to Public Knowledge]
Op-Ed: How Cable Providers Can Maintain Relevancy in the New Era of OTT [links to Broadcasting&Cable]
CONTENT
What does Spotify's decision to share user data mean? [links to Christian Science Monitor]
Sponsored Content Takes Larger Role in Media Companies [links to New York Times]
ADVERTISING
How Sponsored Content Is Becoming King in a Facebook World - NYT analysis [links to Benton summary]
SECURITY/PRIVACY
Illinois online voter registry hacked; voter records taken [links to Benton summary]
Op-Ed: The Internet of Things Will Turn Large-Scale Hacks into Real World Disasters [links to Vice]
In a major cyber hack, who do you call? The White House will spell it out today. [links to Washington Post]
CHILDREN & MEDIA
PokéSTOP: Campaign for a Commercial Free Childhood Warns Against Kid-Targeted Ads [links to Benton summary]
POLICYMAKERS
FCC's Wheeler Said to Stay into 2017 if Clinton Wins Election
Illinois lawmaker resigns suddenly citing "cyber security issues" [links to Daily Herald]
COMPANY NEWS
Ericsson CEO Hans Vestberg Is Out [links to Broadcasting&Cable]
STORIES FROM ABROAD
Ofcom calls on BT for “legally separate” Openreach
CityFibre steps up campaign over broadband competition in UK [links to Financial Times]
Turkey Cracks Down on Journalists, Its Next Target After Crushing Coup [links to New York Times]
China Clamps Down on Online News Reporting [links to Benton summary]
Can the internet reboot Africa?
An etiquette guide to the African internet: Defend your country, tease its politicians, and dispense a little ancient wisdom – but always remember to charge your phone [links to Guardian, The]
Why did Iran destroy 100,000 satellite dishes? [links to Christian Science Monitor]
China Clamps Down on Online News Reporting [links to Benton summary]
MORE ONLINE
The Long, Final Goodbye of the VCR [links to New York Times]
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OWNERSHIP
VERIZON-YAHOO
[SOURCE: New York Times, AUTHOR: Vindu Goel, Michael de la Merced]
Yahoo’s board has agreed to sell the company’s core internet operations and land holdings to Verizon Communications for $4.8 billion. After the sale, Yahoo shareholders will be left with about $41 billion in investments in the Chinese e-commerce company Alibaba, as well as Yahoo Japan and a small portfolio of patents. That compares with Yahoo’s peak value of more than $125 billion, reached in January 2000. Marissa Mayer, Yahoo’s chief executive, is not expected to join Verizon, but she is due to receive a severance payout worth about $57 million, according to Equilar, a compensation research firm. For Verizon, the deal simply adds another piece to the digital media and advertising business it is trying to build. Verizon is building a portfolio of online content and aiming to monetize it via advertising. Its current assets include Huffington Post and TechCrunch, which it acquired in last year’s AOL deal, and its own mobile video app, called go90. Acquiring Yahoo will bring in millions more viewers from Yahoo sites like Finance, Sports and News. Verizon also hopes to plug data derived from smartphones into AOL, and now Yahoo’s, digital advertising systems, and it is aiming to build a competitor to online advertising giants Facebook and Google. But a combined Yahoo and AOL would be far outpaced by its now far-larger rivals. The companies said the deal is subject to customary closing conditions, including approval by Yahoo’s shareholders, and is expected to close in early 2017. Until the closing, the companies said, Yahoo will continue to operate independently.
benton.org/headlines/yahoos-sale-verizon-ends-era-web-pioneer | New York Times | WSJ | FT
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VERIZON IS NO DUMB PIPE
[SOURCE: telecompetitor, AUTHOR: Joan Engebretson]
On the long-debated question of whether or not it’s OK for communications service providers to operate as “dumb pipes,” Verizon clearly believes the answer is “no.” Verizon sees great value in the ability of its wireless network to gain knowledge about customers, including location-based information, and to use that information to customize advertising and content offerings, with customer consent. In the last two years or so the company has made a range of moves to support this strategy. Some industry observers see substantial challenges for Verizon as it pursues a mobile strategy, however. And Verizon’s mobile content strategy has drawn criticism from those who believe the company’s investment in company’s such as AOL and Yahoo detracts from its ability to invest in its network infrastructure, particularly on the landline side of its business. Those critics tend to believe that it’s fine for service providers to pursue a dumb pipe strategy – as long as they deliver the highest quality and highest capacity pipes possible. It could be years before we know whether Verizon has made the right choices on the dumb-versus- smart-pipe question.
benton.org/headlines/48-billion-verizon-yahoo-purchase-shows-carrier-determined-not-be-dumb-pipe | telecompetitor
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ELECTION 2016
RUSSIA AND THE DNC EMAIL RELEASE
[SOURCE: Washington Post, AUTHOR: Tom Hamburger, Ellen Nakashima]
A top official with Hillary Clinton’s campaign accused the Russian government of orchestrating the release of damaging Democratic Party records to help the campaign of Republican Donald Trump — and some cybersecurity experts agree. The extraordinary charge came as some national security officials have been growing increasingly concerned about possible efforts by Russia to meddle in the election, according to several individuals familiar with the situation. Although other experts remain skeptical of a Russian role, the hacking incident has caused alarm within the Clinton campaign and also in the national security arena. Officials from various intelligence and defense agencies, including the National Security Council, the Department of Defense, the FBI and the Department of Homeland Security, attended the White House meeting Thursday, on the eve of the email release. If the accusation is true, it would be the first time the Russians have actively tried to influence an election in this manner, analysts said.
benton.org/headlines/clinton-campaign-and-some-cyber-experts-say-russia-behind-email-release | Washington Post
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E-MAILS SHOW DEBBIE WASSERMAN SCHULTZ PRESSURED 'MORNING JOE' -- TO NO AVAIL
[SOURCE: Washington Post, AUTHOR: Callum Borchers]
On May 18, "Morning Joe" co-host Mika Brzezinski said Democratic National Committee Chairwoman Debbie Wasserman Schultz "should step down" because she had favored Hillary Clinton over Sen Bernie Sanders (I-VT) throughout the primary. One week later, Brzezinski doubled down, saying, "My contention all along has been that [Wasserman Schultz] has been in the tank for Hillary from the get-go, and it's been quite obvious." The repetition seemed like no big deal at the time, but now hacked DNC e-mails show that in between Wasserman Schultz and her staff flipped out, pressuring MSNBC to make Brzezinski and partner Joe Scarborough tone down their criticism. Clearly, it didn't work. The WikiLeaks' release of DNC e-mails offers a window into Democrats' relations with the press. In some cases, the view of the media isn't terribly flattering. "This is the LAST straw," Wasserman Schultz wrote to her communications director, Luis Miranda, on the morning that Brzezinski called for her resignation. "Please call Phil a [sic] Griffin. This is outrageous. She needs to apologize."
benton.org/headlines/e-mails-show-debbie-wasserman-schultz-pressured-morning-joe-no-avail | Washington Post
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INTERNET/BROADBAND
FRONTIER SUED
[SOURCE: Fierce, AUTHOR: Sean Buckley]
Frontier's woes in West Virginia have come to a new head as competitive provider Citynet is suing Frontier over abusing $40.5 million in federal stimulus funds to build a broadband network that would lock out competitors in the state. In the lawsuit, Citynet accuses Frontier of double-billing, claiming that it falsified records and charged excess fees not authorized by the federal grant that funded the telco's broadband expansion project it completed in 2014. West Virginia Homeland Security Chief Jimmy Gianato, Chief Technology Officer Gale Given, and former Commerce Secretary Kelly Goes have also been named in the suit. Citynet claims these three state leaders willingly participated in a scheme to abuse government funds. The lawsuit was originally filed in 2014 and Citynet recently updated the suit when the U.S. Justice Department said it would not weigh in. At issue is a $126.3 million federal stimulus broadband grant awarded to West Virginia in 2010. This grant was aimed at providing broadband internet to 1,064 public facilities -- including a mix of schools, libraries, health clinics, courthouses and state police detachments.
benton.org/headlines/frontier-sued-alleged-misuse-405-million-federal-broadband-stimulus-funds | Fierce
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WIRELESS
A Path for Mobility Fund Phase II? - FCC Commissioner O'Rielly
MOBILITY FUND
[SOURCE: Federal Communications Commission, AUTHOR: FCC Commissioner Michael O'Rielly]
Federal Communications Commission leadership recently indicated that we will issue final rules for a new mobile-only universal service subsidy program by the end of 2016. While I remain greatly skeptical about the timing and value of doing so, given our experiences and the changes that have occurred over the past five years, it seems reasonable that if we are going to have this fund it must be structured and operated far better than today’s wireless universal service fund (USF) spending. We owe it to those Americans that could benefit from a functionally-sound program and, more importantly, to those consumers and businesses that pay for our universal service programs. Since it appears that the purpose and structure of the program are still up for discussion and debate, I am putting forth some key elements that will guide my review of any reform. Without addressing most, if not all, of these points, it is hard to see how a unanimous, bipartisan vote can be achieved:
Prohibit Overlap & Target Support – It makes no sense to subsidize a wireless carrier in an area that has another unsubsidized competitor.
Subsidize Only One Carrier – Assuming we can get funding targeted to where it is needed, we should not fund multiple carriers to serve the same area.
Phase Out Current Support – Some existing recipients of funds under the current wireless program argue that without continued subsidies, they may have to turn off certain unprofitable towers. This has been labelled the “Rusty Tower” problem. Much of this territory, however, is already covered by multiple 4G carriers.
Populations, Not Roads – In determining areas that remain unserved, the Commission has traditionally targeted population areas. This makes complete sense as we are trying to serve where people actually live, work and function. The alternative discussed of funding road areas leads to huge outlays for tiny portions of mainly unused roads and represents an inefficient use of funds. In the end, this may mean that not every single square inch of America receives wireless signals.
Providers Must Offer Broadband – Currently, wireless carriers receiving existing support under the old program have few real service obligations. This is no longer tolerable. Every USF program that has been reformed recently has installed requirements for subsidy recipients to offer broadband of certain capabilities. Wireless carriers under a Mobility Fund Phase II should be no different.
Finish Remote Areas Fund (RAF) – I would prefer to address the RAF in conjunction with creating the Mobility Fund Phase II. If that isn’t in the cards, the Commission needs to at least consider interaction between RAF and Mobility Fund Phase II when adopting Mobility Fund Phase II rules.
benton.org/headlines/path-mobility-fund-phase-ii | Federal Communications Commission
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TELECOM
FCC APPROVES TELCORDIA AS THE NEXT LOCAL NUMBER PORTABILITY ADMINISTRATOR
[SOURCE: Federal Communications Commission, AUTHOR: Press release]
The Federal Communications Commission released an Order giving final approval to a recommendation that Telcordia Technologies serve as the nation’s next Local Number Portability Administrator, or LNPA. The LNPA oversees the critical system that allows consumers and businesses to keep their phone numbers when they switch providers, promoting choice and competition. Acting on the recommendation of its numbering advisory committee, the North American Numbering Council, the Commission found that Telcordia can meet the strict conditions set by the FCC to ensure reliability, security, and competitive neutrality of the numbering system. Specifically, the FCC found that:
The LNPA contract contains terms and conditions to ensure that effective public safety services and law enforcement and national security operations are supported.
The terms and conditions of the LNPA contract ensure that the Government’s interests are protected by a rigorous audit program that monitors for and ensures compliance, backstopped by robust enforcement tools, throughout the term of the contract.
Telcordia has submitted a Code of Conduct and Voting Trust Agreement ensuring that Telcordia will be an impartial LNPA.
Telcordia has effectively engaged in post-selection risk reduction activities to address the evolving cybersecurity threat environment.
benton.org/headlines/fcc-approves-telcordia-next-local-number-portability-administrator | Federal Communications Commission | read the order | read the order
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POLICYMAKERS
CHAIRMAN WHEELER SAID TO STAY INTO 2017 IF CLINTON WINS ELECTION
[SOURCE: Bloomberg, AUTHOR: Lydia Beyoud]
Federal Communications Commission Chairman Tom Wheeler intends to stay in his job until the middle of 2017 if presumptive Democratic presidential nominee Hillary Clinton wins the White House, apparently. Chairman Wheeler has avoided any public pronouncements about when he might leave the agency. Apparently, Chairman Wheeler has told telecommunications industry insiders privately about his plans for 2017. Staying until mid-2017 gives Chairman Wheeler a better shot at wrapping up several big-ticket agency initiatives, sealing his legacy as an activist chairman. Chairman Wheeler is hoping to finish several controversial agency proposals before he leaves the chairmanship, including rules impacting the business broadband market, broadband privacy related to his network neutrality rules and a complex auction to shift spectrum licenses from television broadcasters into the hands of mobile carriers hungry for more airwaves. A mid-2017 time frame could also be just what a Clinton administration would prefer, apparently. Chairman Wheeler technically could serve out his full five-year commission term, which doesn't end until Nov. 3, 2018. That is not likely; according to conventional wisdom inside the Beltway, a Clinton loyalist is expected to take the helm of an agency that has grown from relative obscurity to playing a prominent policy role in the Obama Administration.
benton.org/headlines/fccs-wheeler-said-stay-2017-if-clinton-wins-election | Bloomberg
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STORIES FROM ABROAD
OFCOM’S OPENREACH DECISION
[SOURCE: Financial Times, AUTHOR: Lauren Fedor, Nathalie Thomas]
Openreach should become a “legally separate” company within the BT Group, the UK telecommunications regulator said in a long-awaited verdict on the future of the telecoms group’s profitable infrastructure arm. Ofcom said that Openreach, which owns the fibres and wires that allow homes and businesses in Britain to get broadband connections, should have an independent board and chairman, as well as control over its own budget. The regulator stopped short of recommending a full-blown break-up — an option favoured by rivals TalkTalk, Sky and Vodafone. But it said that complete structural separation, with Openreach and BT under distinct ownership, remained an option if the infrastructure division does not act “more independently” and “take decisions for the good of the wider telecoms industry and its customers”.
benton.org/headlines/ofcom-calls-bt-legally-separate-openreach | Financial Times
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CAN THE INTERNET REBOOT AFRICA?
[SOURCE: The Guardian, AUTHOR: Mark Rice-Oxley, Zoe Flood]
With smartphone use and web penetration soaring, Africa is set for a tech revolution – but only if its infrastructure can support it. By 2020 there will be more than 700 million smartphone connections in Africa – more than twice the projected number in North America and not far from the total in Europe, according to GSMA, an association of mobile phone operators. In Nigeria alone 16 smartphones are sold every minute, while mobile data traffic across Africa is set to increase 15-fold by 2020. Twenty per cent of the continent already have access to a mobile broadband connection, a figure predicted to triple in the next five years. The mobile industry will account for 8% of GDP by 2020 – double what it will be in the rest of the world. And internet penetration is rising faster than anywhere else as costs of data and devices fall.
[This is the first of a two-week series supported by the Bill & Melinda Gates Foundation]
benton.org/headlines/can-internet-reboot-africa | Guardian, The
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