October 2016

The Next Step to Modernizing Lifeline: Ensuring Smooth Implementation to Reach Underconnected

Dec 2016, the Federal Communications Commission's Lifeline modernization order will finally go into effect, empowering millions of low-income Americans with the resources to access high-speed Internet. Lifeline’s modernization couldn’t come at a more critical time. Half of all Latinos lack broadband access at home, and high monthly costs are most often cited as the primary barrier for non-adoption. Further, 69% of Americans find the lack of home broadband access to be a major disadvantage.

Beginning December 2, broadband providers will have the option to provide Lifeline-eligible services that meet certain FCC minimum standards. Wireless data plans must offer at least 500 mb/month, and fixed broadband service must offer 150 GB at download speeds of 10 mbps and upload speeds of 1 mbps. Participants interested in mobile voice-only plans can continue to apply the subsidy to plans offering at least 500 voice minutes. Starting in December 2017, the subsidies for voice-only plans will gradually decline until these plans are completely phased out of the Lifeline program in 2021.

Also going into effect this December will be new Lifeline eligibility guidelines. Consumers can continue to automatically qualify for Lifeline benefits through participation in federal assistance programs such as Medicaid, Supplemental Security Income (SSI), Supplemental Nutrition Assistance Program (SNAP), and Federal Public Housing Assistance. Consumers receiving Veterans Pension or Survivors Pension benefits will also now be eligible. Participants will also still be able to qualify by proving they earn less than 135% of the federal poverty level. However, customers will no longer be able to use Low Income Home Energy Assistance Program (LIHEAP), National School Lunch Program (NSLP), or Temporary Assistance for Needy Families (TANF) to automatically qualify.

Also beginning in December, the National Hispanic Media Coalition will begin working with allies and broadband providers to ensure low-income families across the country can take advantage of Lifeline and stay connected with loved ones, vital government resources, and homework help. We’ll be working with other community organizations to sponsor events across the country to help consumers sign up for Lifeline benefits.

Lifeline Connects Coalition Seeks Waiver of Certain Lifeline Rules

The Lifeline Connects Coalition filed a Petition on October 25, 2016 seeking a waiver of certain new Lifeline rules. The coalition asked the Federal Communications Commission’s Wireline Competition Bureau to waive changes which replace a current 60-day non-usage period with 30 days because the new 30-day non-usage rules will harm and endanger consumers. The coalition also asked the Bureau to direct the Universal Service Administrative Company (USAC) to rescind its guidance that would implement the 30-day non-usage rule prior to the December 2, 2016 effective date, arguing it is unlawful and impractical for eligible telecommunications carriers (ETCs) to administer.

Vertical limit: AT&T's takeover of Time Warner should be blocked

[Commentary] One of the biggest problems facing America’s economy is waning competition. In the home of free enterprise two-thirds of industries have become more concentrated since the 1990s, partly owing to lots of mergers. Fat, cosy incumbents hoard cash, invest less, smother new firms that create jobs and keep prices high. They are rotten for the economy. Boosting competition should be a priority for whoever occupies the White House in 2017, and for Congress. Now a test case is waiting in the in-tray. AT&T, America’s fifth-biggest firm by profits, wants to buy Time Warner, the second-biggest media firm.

The $109 billion megadeal isn’t a simple antitrust case, because it involves a firm buying a supplier, not a competitor. But there is a strong case that it will limit consumer choice in a part of the economy that is rife with rent-seeking and extend a worrying concentration of corporate power. It should be stopped. Precedent suggests that the trustbusters in the Department of Justice (under the auspices of the president), and not the Federal Trade Commission (a creature of Congress), will have the biggest say on the tie-up. This means the deal is being struck just as there is a change of leadership at the top. Those advising on the merger may be gambling that this makes the authorities unlikely to initiate a strong line on vertical mergers. That is all the more reason to be bold. Politicians and regulators may eventually resolve to open up the industry more, for example through “unbundling”, which lets upstart firms use others’ pipes. Until then they should block the AT&T-Time Warner deal and make clear that competition, not consolidation, is the way to get America’s economy working better.

FCC's Wheeler Won't 'Hip Shoot' on AT&T-Time Warner Merger Role

Federal Communications Commission Chairman Tom Wheeler isn't talking about the potential for the FCC to be reviewing the proposed AT&T/Time Warner merger. He was asked to weigh in after the FCC's public meeting Oct 27. Commissioners historically don't talk about merger reviews before the agency, but the merger application has yet to be filed.

Chairman Wheeler was not talking about it anyway, pointing out there was no deal before him, though there might be, and almost certainly he won't comment on it then either. "Nothing has been presented to us right now and if something is presented, we will make a decision based on the public interest," he said. He brushed off as hypotheticals general questions about his view on vertical integration, the efficacy of behavioral versus structural conditions, or what an FCC "advisory" role might be in the deal. Chairman Wheeler never answers questions he defines as hypothetical. However, in terms of whether he thought vertical integration was healthy for competition, he said: "I don't think there is any doubt about my stand on 'competition, competition, competition.'" Asked if the FCC's hands were tied if the AT&T/Time Warner merger did not include any license transfers, Chairman Wheeler said: "We ought to see how things develop. I'm not going to stand here and hip shoot one way or another."

FCC Chairman Tom Wheeler Announces Staff Changes

Federal Communications Commission Chairman Tom Wheeler announced the appointment of Lisa Hone as legal advisor to the Chairman with responsibility for wireline telecommunications issues, and the departure of Stephanie Weiner.

Hone begins work in the Chairman’s office in November. Hone has most recently served as an associate bureau chief in the FCC’s Wireline Competition Bureau (WCB). She has also served as a legal advisor for former Commissioner Michael J. Copps and as a deputy division chief in the Telecommunications Access Policy Division in WCB. Prior to joining the staff of the FCC in 2010, Hone worked at the Federal Trade Commission where she conducted and supervised federal court litigation and rulemaking proceedings involving a wide array of consumer protection issues. Hone has also worked in the US Senate (on detail from the FTC) and in private practice at Davis Polk & Wardwell in New York City. Hone earned her law degree from the University of California, Los Angeles and earned a bachelor’s degree from Wesleyan University.

Weiner has been at the Commission since 2013, serving as senior legal advisor to the Chairman and, prior to that, in the FCC’s Office of General Counsel. Weiner has served in senior legal positions with Neustar, Inc.; the US Department of Energy; the FCC’s Wireline Competition Bureau; and as an associate at Harris, Wiltshire & Grannis, LLP. Weiner earned a law degree from Northwestern University School of Law, a master's from the University of Chicago, and a bachelor’s from Brown University.

FCC Announces Excellence in Economics, Engineering Award Winners

The Federal Communications Commission announced the winners of the Excellence in Economic Analysis and Excellence in Engineering Analysis Awards. These awards are intended to recognize Commission staff for outstanding economic analysis, and engineering, scientific or technical contributions that they have performed in the course of their work at the Commission.

Eugene Kiselev of the Media Bureau and Katherine LoPiccalo of the FCC’s Office of Strategic Planning share the 2016 Excellence in Economic Analysis Award for economic analysis of the Charter/Time Warner Cable/Bright House merger application. Kamran Etemad of the Wireless Telecommunications Bureau and Robert Pavlak and Navid Golshahi of the Office of Engineering and Technology are the winners of the Commission’s 2016 Excellence in Engineering Award for their work on the technical issues for the Citizens Band Radio Service in the 3550 – 3700 MHz band.

Mapping Computer and Internet Use by State: Introducing Data Explorer 2.0

One of the major advantages of the National Telecommunications and Information Administration's surveys on computer and Internet use stems from their very large sample size--approximately 53,000 households representing more than 120,000 people. This allows us to break out results by demographics like age, race, income, and education, as well as by state of residence.

Oct 27, we are launching a new feature of our Data Explorer tool enabling users to visualize NTIA's computer and Internet use data by state, with metrics displayed in a national map. Users can easily adjust the map to reflect different datasets, while pressing the "Play" button cycles through datasets to show how the country has changed over time. The map view is available for every metric in Data Explorer, such as use of various devices, locations of Internet use, and online activities.

Chairman Wheeler: ISPs Have Ability to Deal With DDoS Attacks

Federal Communications Commission Chairman Tom Wheeler says that the FCC's Open Internet order does give Internet service providers the ability to deal with the distributed denial-of-service (DDoS) attacks like the one that hit Twitter, Netflix and other sites Oct 21.

At a press conference following the Oct. 27 public meeting, Chairman Wheeler said that given that the order allows for reasonable network management, ISPs "clearly" have leeway "to deal with issues like this." That came in response to a letter from Sen Mark Warner (D-VA)—Chairman Wheeler also said he would be officially responding—raising concerns that the Open Internet order might restrict that response, particularly given the proliferation of Internet of Things (IoT) connected devices. FCC Commissioner Ajit Pai, speaking after the Chairman, said he would be willing to work with Sen Warner's staff to "try to get to the bottom of this" but said he thought the FCC's role on cybersecurity should primarily be as a consultant.