October 2016

October 25, 2016 (Tracking AT&T-Time Warner)

We’re making it easier for you to track AT&T’s acquisition of Time Warner -- https://www.benton.org/headlines/ATT-time-warner

BENTON'S COMMUNICATIONS-RELATED HEADLINES for TUESDAY, OCTOBER 25, 2016 (4 -- Go Cubs!)

Today's Events --

Making the Connection: Lessons Learned & Ongoing Initiatives to Bridge the Broadband Gap with Older Adults, Project GOAL -- https://www.benton.org/node/248578
War and Tweets: Terrorism in America in the Digital Age, New America -- https://www.benton.org/node/248458

CONSUMER PROTECTION
How Your Internet Provider Restricts Your Rights - Sen Franken, FCC Commissioner Clyburn op-ed

ELECTIONS 2016
   Clinton Transition Corner
   On freedom of the press, Donald Trump wants to make America like England again
   The lap dogs of democracy who didn’t bark at Trump [links to Benton summary]
   Presidential Campaigns Haven’t Agreed To ‘Acceptable’ Post-Election Press Access [links to Benton summary]
   Catherine Rampell: Want to save the Republican Party? Drain the right-wing media swamp. [links to Washington Post]
   'Trump TV' Launches Pilot With Pitch To Candidate's Base [links to National Public Radio]
   Trump links WikiLeaks to media ‘voter suppression’ [links to Hill, The]
   Trump campaign advisers to host nightly Facebook live show through Election Day [links to Politico]
   Why this Facebook co-founder is donating big money to Hillary Clinton [links to Washington Post]
   Should Media Employees Give to Campaigns? [links to Benton summary]
   Ed Asner to Moderate Alternative Debate [links to Broadcasting&Cable]

INTERNET/BROADBAND
Forging the Fiber Future - Todd O’Boyle

SECURITY/PRIVACY
   Top Rep Pallone Aide Stumps for Strong FCC Privacy Rules [links to Benton summary]
   Taking cyber power seriously - AEI editorial [links to Benton summary]
   Connected devices are easily hacked. Why aren’t we holding manufacturers accountable? [links to Revere Digital]
   Why securing IoT is a national-security imperative [links to International Association of Privacy Professionals]
   President Obama: We have no idea who carried out huge cyberattack [links to CNN Money]

ADVERTISING
   Political ad spending hikes prices, cuts inventory [links to American Public Media]
   The States Where Clinton and Trump Are Advertising the Most Until Election Day [links to AdAge]
   How the Trans-Pacific Partnership Benefits Digital Advertising [links to AdWeek]

OWNERSHIP
The New York Times is buying The Wirecutter for more than $30 million [links to Revere Digital]

POLICYMAKERS
Pallante out as Register of Copyrights - press release
One new California PUC commissioner has already begun reform - Sacramento Bee op-ed [links to Benton summary]

COMPANY NEWS
T-Mobile Profit Climbs as It Adds 2 Million Customers [links to Wall Street Journal]

STORIES FROM ABROAD
EU extends deadline in Google antitrust case to Nov 3 [links to Hill, The]
Melinda Gates concerned that more than a billion women in the developing world don’t have access to cellphones [links to Wall Street Journal]

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CONSUMER PROTECTION

HOW YOUR INTERNET PROVIDER RESTRICTS YOUR RIGHTS
[SOURCE: Time, AUTHOR: Sen Al Franken (D-MN), FCC Commissioner Mignon Clyburn]
[Commentary] Communications providers who offer access to the Internet in our homes and on our phones have found a way to evade accountability by effectively locking the courtroom doors on their customers. They do it through the use of what are known as mandatory arbitration clauses, buried deep in the fine print of the contracts you have to sign in order to get Internet service. These clauses force you to sign away your right to go to court in the event of a dispute, in favor of a private arbitration process that is inherently biased towards corporations and offers no meaningful appeals process. In an age where reliable and affordable Internet access is an absolute necessity, we believe that you shouldn’t have to give up your day in court to go online, either. That’s why we’re teaming up to try to eliminate mandatory arbitration clauses in telecom contracts. But whether it’s in the Senate (where Al has authored legislation that would ban these clauses) or at the Federal Communications Commission (where Mignon is leading the charge for a regulatory crackdown this month), your voice matters in this fight. After all, these are your rights at stake. If the issue of mandatory arbitration remains just another little-known way for corporations to take advantage of the little guy, it’ll be impossible to stop them. But if we raise awareness about this quiet threat to our rights and raise our voices in support of eliminating this unfair practice once and for all, we can strike a blow for justice and protect every American who goes online—which is pretty much all of us.
benton.org/headlines/how-your-internet-provider-restricts-your-rights | Time | Multichannel News | ars technica
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AT&T/TIME WARNER

MERGER CRITICS TAKE AIM AT ATT-TIME WARNER
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
Combining telecommunication giant AT&T with Time Warner and its content assets that stretch from CNN to the Harry Potter film franchise was bound to draw fire from media consolidation foes, and that was the case Oct 23 and 24 as details of the merger deal emerged. Mike Copps, something of the elder statesman of consolidation critics, called the deal "unthinkable." "The sorry history of mega mergers shows they run roughshod over the public interest," said Copps, now a special advisor to Common Cause and formerly Federal Communications Commission Democratic chairman and commissioner. "Further entrenching monopoly harms innovation and drives up prices for consumers. The answer is clear: regulators must say no." Gene Kimmelman, who heads up Public Knowledge, said, “[W]e see many competition concerns related to preferencing their own services and content in ways that may harm consumers." Demand Progress Executive Director David Segal said the deal would be "disastrous' for the public. "This takeover would result in a dangerous concentration of economic and political power that could lead to higher costs, curtail consumer choice, and potentially constrain speech and information access," he said. The Parents Television Council said: "AT&T’s purchase of Time Warner will create an entertainment behemoth, and no doubt the corporate spin-masters will emphasize benefits to consumers. But if history is our guide, this merger should be of great concern to families."
benton.org/headlines/merger-critics-take-aim-att-time-warner | Broadcasting&Cable
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ATT AND TIME WARNER SEEK TO MOLLIFY DEAL'S CRITICS
[SOURCE: New York Times, AUTHOR: Leslie Picker]
On Oct 24, AT&T’s chief executive, Randall L. Stephenson, and his Time Warner counterpart, Jeffrey L. Bewkes, sought to address some of their biggest criticisms:
The Strategic Rationale: During the hourlong call, a form of the word “innovate” was used 32 times. The two chief executives believe combining their companies will help them innovate around advertising, the shows and movies people watch and where they watch them (hint: on their cellphones).
Regulatory Risk: Over the weekend, politicians from across the political spectrum came out against the deal. Both Democrats and Republicans argued that too much consolidation between telecommunications and media could only be bad for consumers. Bewkes argued that consumers would not feel the effect of this transaction, that the cost would be “borne by advertisers and consumers get a break.”
Affordability: Vertical integration may help the two companies on the regulatory front, but it does not get them far from a cost-savings standpoint. The companies pegged so-called synergies at $1 billion in annual run rate, within three years of the deal closing.
benton.org/headlines/att-and-time-warner-seek-mollify-deals-critics | New York Times
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ATT, TIME WARNER AND CNN
[SOURCE: New York Times, AUTHOR: Michael Grynbaum]
In its 130-year history, AT&T has transitioned from a telegraph service to a wireless provider to a global communications behemoth. Now, one of America’s oldest corporations is about to take on what may be its trickiest identity yet: journalist. Assuming its $85 billion merger with Time Warner is cleared, AT&T will soon find itself in charge of CNN, the cable news stalwart whose profitability — itself a crucial lure for suitors of Time Warner — relies on an international reputation for legitimate reporting. The difficulties of defending tough reporting and shielding journalists from powerful antagonists can be hard for any corporation to stomach. And while AT&T gained a foothold in the television industry by acquiring DirecTV in 2015, the company has no journalistic lineage, meaning its executives will have to face these challenges on the fly.
benton.org/headlines/att-time-warner-deal-brewing-focus-preserving-cnns-integrity | New York Times | Wall Street Journal
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GOOD FOR CONSUMERS?
[SOURCE: Los Angeles Times, AUTHOR: David Lazarus]
[Commentary] If federal authorities play this correctly, the AT&T-Time Warner merger actually could be beneficial for consumers. What they should do is press the case for skinny bundles and a la carte channels. Despite all the political posturing, I expect the deal ultimately to be approved. There’s not a lot of overlap in AT&T’s and Time Warner’s operations, so the most troublesome element is creation of a corporate behemoth of Monster Island proportions. To address that, the Justice Department and Federal Communications Commission almost certainly will impose a number of conditions to make the deal more palatable, including divestiture of some properties and commitments to play nice with other kids. Because a merged AT&T-Time Warner would cast such a long shadow over the telecom and media industries, a requirement that the company offer smaller, reasonably priced programming packages and break off popular channels on an a la carte basis could have a sweeping effect on other pay-TV players. “It’s always the case that when one party does something that’s more pro-consumer, others will follow,” said John Bergmayer, senior counsel at the advocacy group Public Knowledge.
benton.org/headlines/att-time-warner-merger-could-be-blessing-disguise-consumers | Los Angeles Times
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WHEN DISRUPTION SPURS INNOVATION AND INVESTMENT
[SOURCE: AT&T, AUTHOR: David McAtee]
[The AT&T/Time Warner] transaction will reshape the competitive landscape. Put simply, AT&T and Time Warner will innovate within the system, forcing other providers to compete with innovations of their own and creating demand for wireless connectivity that will give all wireless providers greater confidence to deploy 5G networks faster, deeper, and more robustly than they otherwise would. The result is a virtuous cycle of innovation and investment that expands consumer choice, incentivizes investment in the nation’s broadband infrastructure, and allows wireless companies like AT&T to bring needed competition to consumers looking for a wireless alternative to their cable broadband. And we can accomplish all of this without harm to competition. As we begin the merger review process, we look forward to sharing these facts with our regulators. Vertical mergers like this one have long been recognized as being fundamentally pro-competitive, and for good reason. This transaction is about giving consumers more choices, not less. It is about expanding the distribution of Time Warner’s content, not restricting it. It is about stimulating the creation of more and better content, generating demand for next generation wireless services, and delivering consumers what they want. This only happens when the right combination of assets yields the right incentives to invest, innovate, and transform. The next revolution in video awaits.
benton.org/headlines/when-disruption-spurs-innovation-and-investment | AT&T | Multichannel News
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ATT MAY OPT OUT OF INCENTIVE AUCTION DUE TO TIME WARNER DEAL
[SOURCE: Fierce, AUTHOR: Colin Gibbs]
AT&T may no longer be looking to spend much in the incentive auction of 600 MHz spectrum now that it has agreed to fork over $85 billion to acquire Time Warner. And that would likely mean that the auction won’t raise nearly as much money as had been expected. The nation’s second-largest mobile network operator announced over the weekend that it has agreed to buy Time Warner in a blockbuster deal to expand its digital media empire. The move comes as AT&T prepares to launch DirecTV Now, a mobile-focused, over-the-top (OTT) offering in an effort to leverage the 2015 $49 billion acquisition of the satellite TV provider. Interestingly, the announcement came just a few days after Stage 2 of the incentive auction of TV broadcasters’ airwaves ended abruptly after a single round, surprising analysts and other onlookers who expected the second stage to last two weeks or more. Stage 2 generated only $21.5 billion in bids, falling far short of the $54.6 billion that would have ended the event. The unexpectedly truncated round led some analysts to suggest that one bidder that had been looking to buy spectrum nationwide may have put its wallet back in its pocket, essentially walking away from the event. And Tim Farrar of TMF Associates took that scenario one step further, suggesting Comcast – which had been expected to spend roughly $5 billion or $6 billion at auction – might have opted out, choosing to focus primarily on the MVNO agreement it activated with Verizon last year rather than investing heavily to acquire its own spectrum licenses.
benton.org/headlines/analyst-att-may-opt-out-incentive-auction-due-time-warner-deal | Fierce
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ATT/TIME WARNER DEAL COULD BE APPROVED WITHOUT ANY FCC MERGER REVIEW
[SOURCE: ars technica, AUTHOR: Jon Brodkin]
Advocacy groups are urging US regulators to consider blocking AT&T's purchase of Time Warner, but AT&T may be able to avoid any review by the Federal Communications Commission. The merger will be analyzed by the Department of Justice, but AT&T has said the FCC will be involved only if any FCC licenses are transferred to AT&T. A TV station is an example of something that requires an FCC license, but AT&T said that it and Time Warner are still "determining which FCC licenses, if any, will be transferred to AT&T in connection with the transaction." The reason for this uncertainty is that "despite its big media footprint, Time Warner has only one FCC-regulated broadcast station, WPCH-TV in Atlanta," Reuters reported. "Time Warner could sell the license to try to avoid a formal FCC review, several analysts said." (Time Warner Inc. is completely separate from Time Warner Cable, which was sold to Charter in 2016 after an FCC review.) Transfer of a license to a third party would still require FCC review, but it would be separate from the AT&T/Time Warner transaction. Multichannel News raised the possibility that there might be other FCC licenses involved, but acknowledged that it isn't clear. "Some analysts, and one veteran communications attorney, thought there might be some satellite uplink licenses, but an FCC source said they did not know of any," the news site reported.
benton.org/headlines/atttime-warner-deal-could-be-approved-without-any-fcc-merger-review | Ars Technica
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ELECTIONS 2016

ON FREEDOM OF PRESS, TRUMP WANTS USA LIKE ENGLAND AGAIN
[SOURCE: Washington Post, AUTHOR: Callum Borchers]
Donald Trump's presidential campaign is all about American greatness — unless the subject is freedom of the press, in which case the Republican nominee thinks England is much more tremendous than the United States. Trump reiterated his desire to weaken First Amendment protections, a position he staked out in February when he pledged to “open up” libel laws so that public figures, such as himself, can sue and win cases against media companies more easily. Trump described his vision in greater detail: "Well, in England they have a system where you can actually sue if someone says something wrong. Our press is allowed to say whatever they want and get away with it. And I think we should go to a system where if they do something wrong — I'm a big believer, tremendous believer, of the freedom of the press. Nobody believes it stronger than me, but if they make terrible, terrible mistakes and those mistakes are made on purpose to injure people — I'm not just talking about me; I'm talking anybody else then, yes, I think you should have the ability to sue them," Trump said. "So you'd like the laws to be closer to what they have in England?" he was asked. "Well, in England you have a good chance of winning. And deals are made and apologies are made. Over here, they don't have to apologize. They can say anything they want about you or me, and there doesn't have to be any apology. England has a system where if they are wrong, things happen," Trump said.
benton.org/headlines/freedom-press-donald-trump-wants-make-america-england-again | Washington Post
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INTERNET/BROADBAND

FORGING THE FIBER FUTURE
[SOURCE: Medium, AUTHOR: Todd O’Boyle]
[Commentary] It is absolutely essential that the next administration work with Congress and local government leaders to get fiber policy right. Here are a few policy ideas to accelerate fiber deployment in Next Century Cities communities so they can realize the promise of next-generation wireless:
Infrastructure bank support for fiber deployments
Federal “Dig Once” and “Climb Once” policies
Streamlined permitting for access to federal lands
Clarifying community broadband policies
[O’Boyle is Deputy Director at Next Century Cities and Program Director of Media & Democracy Reform Initiative at Common Cause]
benton.org/headlines/forging-fiber-future | Medium
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POLICYMAKERS

CLINTON TRANSITION CORNER
[SOURCE: Politico, AUTHOR: Li Zhou, Tony Romm]
Sen Elizabeth Warren (D-MA) and her progressive allies are pushing Hillary Clinton to curb the market power of tech giants like Apple, Amazon and Google - putting the Democratic nominee in a bind over how hard to police an industry that's showered her with money and support in 2016. If she wins in November, Clinton would have to fill a raft of positions at the Department of Justice and the Federal Trade Commission, the government's twin cops on the competition beat. The tech industry - which has largely avoided major showdowns with Washington's antitrust regulators during the Obama Administration - could easily face new scrutiny if Clinton bows to the Sen Warren wing and appoints people with a tougher eye for enforcement." Another name being circulated for a Clinton antitrust position is Daniel Weitzner, a professor at the Massachusetts Institute of Technology who served in key roles at the Commerce Department and the White House during Obama's presidency. There's also chatter about whether Sharis Pozen, now the vice president for competition at GE, could return to government. During her tenure as acting assistant attorney general at DOJ, she oversaw the agency's landmark effort to block AT&T's proposed purchase of T-Mobile - and she also brought DOJ's successful case against Apple for the way it priced its ebooks. Two Federal Communications Commission aides - Gigi Sohn , an adviser to Chairman Tom Wheeler, and Travis LeBlanc, the agency's enforcement chief - are also seen as contenders for an FTC commissioner post.
benton.org/headlines/clinton-transition-corner | Politico
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REGISTER OF COPYRIGHTS
[SOURCE: Library of Congress, AUTHOR: Press release]
Librarian of Congress Carla Hayden announced the appointment of Maria Pallante as senior advisor for digital strategy and Karyn Temple Claggett as acting register of copyrights. In the role of senior advisor, Pallante will support the Librarian’s agency-wide digital strategy, advising on collecting and preserving digital materials, collections copyright status, licensing opportunities and third-party collaborations related to digital content. Pallante has served as register of copyright since her appointment in 2011 by James Billington. Prior to that appointment, Pallante served as deputy general counsel (2007-2008) and associate register and director of policy and international affairs (2008-2011) for the office. From 1999-2007 she was intellectual property counsel and director of licensing for the worldwide Guggenheim Museums. She also worked for two authors’ organizations in New York, serving as assistant director of the Authors Guild Inc. and as executive director of the National Writers Union. She practiced at the Washington, D.C., law firm and literary agency Lichtman, Trister, Singer and Ross, and completed a clerkship in administrative law for the appellate division of the U.S. Department of Labor.
Temple Claggett has served since 2013 as associate register of copyrights and director of policy and international affairs for the United States Copyright Office. In that role, she has overseen the office’s domestic and international policy analyses, legislative support and trade negotiations. She has directed the Office of Policy and International Affairs, which represents the Copyright Office at meetings of government officials concerned with the international aspects of intellectual property protection, and provides support to Congress and its committees on statutory amendments and construction. Prior to joining the Copyright Office, Temple Claggett served as senior counsel to the deputy attorney general of the United States, where she assisted with the formulation of Department of Justice policy on legal issues and helped manage the Department of Justice’s Task Force on Intellectual Property. She also spent several years in the private sector as vice president, litigation and legal affairs for the Recording Industry Association of America and at the law firm Williams & Connolly, LLP. She began her legal career as a trial attorney for the U.S. Department of Justice’s Civil Division through its Honors Program and also served as a law clerk at the U.S. Court of Appeals for the Sixth Circuit.
benton.org/headlines/pallante-out-register-copyrights | Library of Congress | The Register
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October 2016

Stage 3 of Incentive Auction to Begin November 1

Chairman Wheeler's Response to Members of Congress Regarding Mobility Fund Phase II

FCC Changes Oct 27 Meeting from 9:30am to 10:30am EST

FCC Seeks Comment on Recommendations Approved by the World Radiocommunication Conference Advisory Committee

Chairman Wheeler's Response to Rep. Titus Regarding Business Data Services

A New 21st-Century Job: The Media Mentor -- Two books out this fall help to define this new type of educator

How smartphone cameras took over the world

Can we secure the internet of things in time to prevent another cyber-attack?

How Can ICT Standards Help Align Privacy and Security?

October 25, 2016 (Tracking AT&T-Time Warner)