November 2016

President-elect Trump taps another net neutrality critic for FCC transition

President-elect Donald Trump is tapping another critic of network neutrality to help with the transition at the Federal Communications Commission. The Trump transition team announced that Roslyn Layton will join the FCC landing team. Layton will work alongside Jeffrey Eisenach and Mark Jamison.

Layton, like her two colleagues, has served as a visiting fellow at the American Enterprise Institute (AEI), a conservative think tank. The three are all critics of the agency's controversial net neutrality rules. “The FCC's recent actions and the White House's intervention is inconsistent with a stable, evidence-based regulatory approach,” Layton wrote about net neutrality in a 2015 op-ed cowritten with Jamison. Layton went on to say that the FCC should focus on other matters. “The situation distracts the FCC from its mission-critical responsibilities, such as the upcoming incentive auction to get more spectrum in the marketplace and meet consumers’ increasing demand for wireless technologies.”

President-elect Trump Picks Elaine Chao for Transportation Secretary

She is a woman and an immigrant, a fixture of the Republican establishment for two decades. She is a savvy and professional practitioner of the capital’s inside game. And now she is going to work for President-elect Donald J. Trump. Trump named Elaine L. Chao as his choice to be the next secretary of transportation, elevating someone whose background and experience are in many respects completely at odds with the brash and disruptive tenor of his anti-Washington campaign. His transportation secretary is likely to be one of the more essential players. President-elect Trump, a real estate magnate, has said that infrastructure redevelopment will be a priority of his first 100 days in office. And Chao has experience — politically and personally — in navigating the competing centers of power in the capital. She is married to Senate Majority Leader Mitch McConnell (R-KY).

Trump FCC can't repeal rules quickly, but can enforce how it wants

[Commentary] The Federal Communications Commission under President-elect Donald Trump is likely to take a hard look at network neutrality and the reclassification of broadband as a Title II common carrier service. Repealing a regulation so recently blessed by the Court of Appeals may, however, be a lengthy and difficult process. The Internet Service Provider (ISP) privacy regulations pursuant to the Title II reclassification may be more readily overturned because no court has yet ruled on them. But that would still take some time.

In the interim, the new FCC should adopt a more rational enforcement policy. One early candidate should be the treatment of "pay-for-privacy" or "financial incentive" plans. These are broadband service plans that offer discounts to subscribers who permit their ISP to collect and use their data. The new FCC privacy regulations suggest an enforcement policy that will actively discourage these plans, notwithstanding FCC Chairman Tom Wheeler's claim that, "The bottom line is that it's your data. How it's used and shared should be your choice." Left unsaid was that he prefers some choices to others.

[Thomas M. Lenard is senior fellow and president emeritus of the Technology Policy Institute.]

Internet Archive putting database in Canada to keep it from President-elect Trump

The Internet Archive, a nonprofit that saves copies of old web pages, is creating a backup of its database in Canada, in response to the election of Donald Trump. “On November 9th in America, we woke up to a new administration promising radical change,” the organization wrote. “It was a firm reminder that institutions like ours, built for the long-term, need to design for change.”

The Internet Archive is responsible for services like the Wayback Machine, a tool that allows users to access cached versions of websites long after they are pulled from the Internet, and Open Library, which offers free access to millions of e-books. The move will cost millions, according to the Internet Archive, which is soliciting donations. In their post, the Internet Archive justified its decision to backup its data in Canada, claiming that Trump could threaten an open Internet. “For us, it means keeping our cultural materials safe, private and perpetually accessible. It means preparing for a Web that may face greater restrictions.”

Judge rules against Center for Public Integrity in FEC cybersecurity lawsuit

A US District Court Judge has denied the Center for Public Integrity’s request for access to a taxpayer-funded study about cybersecurity vulnerabilities at the Federal Election Commission. The court’s decision comes more than 13 months after the Center for Public Integrity sued the FEC for access to the security study, which the FEC commissioned following a Center investigation revealing how Chinese hackers infiltrated the FEC’s computer systems.

The 44-page document — known within the FEC as the “NIST study” — in part provides recommendations on how to fix the FEC’s problems and bring its computer systems in line with specific National Institute of Standards and Technology computer security protocols. The study cost $199,500 to produce. In its lawsuit and the requests for the security study that preceded it, the Center noted that it had no quarrel with the FEC redacting sensitive passages that, if revealed, could compromise agency security.

FCC Plans Dec. 5 Start for Forward Auction

The Federal Communications Commission says it expects to start stage three of the forward auction on Dec 5. That is not official, but in announcing that stage three of the reverse auction will end Dec 1—barring computer issues or other outside factors—the FCC said it anticipated starting the forward auction Dec 5, adding: "Forward auction bidders should be prepared for bidding to begin that day."

The reverse auction is where TV stations set the price at which they will give up spectrum—with the FCC lowering the price in each round, while the forward is where bidders compete for the rights to that spectrum, presumably for wireless broadband. So far forward auction bidders have not come close to meeting the broadcasters' asking price, and the FCC has had to reduce the amount of spectrum twice as the auction seeks the intersection of supply and demand—at the right price—that will allow the FCC to close the auction. That is when both the forward auction bids cover the asking price and at a baseline price for the top markets so the rights to the public spectrum are not sold too cheaply.