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January 2017

How a onetime ally of Comcast and AT&T turned the tables on industry

Once pilloried by consumer advocates and comedian John Oliver as a shill for big business, Federal Communications Commission Chairman Tom Wheeler took many by surprise as he brought challenge after challenge to the dominance of the companies he once represented. “I have always been the insurgent versus the incumbent,” he said.

Welcoming the votes of his Republican colleagues when it was politically convenient, forging ahead unilaterally when it wasn't, Chairman Wheeler sought to turn a staid federal office better known for policing celebrity wardrobe malfunctions and distributing airwave licenses into a consumer protection agency that would shape U.S. companies and technologies of the future. But now a dark cloud looms over Wheeler's legacy as Republicans — led by President-elect Donald Trump — prepare to undo some of the most significant regulations approved under his watch. No policy inspires as much fury among technologically minded Republicans as net neutrality, a signature FCC initiative that turned Internet service into a kind of 21st-century utility. Subjecting Internet providers to the same obligations that traditional phone companies must meet, Wheeler's decision to ram the policy through over conservative objections led to intense outrage from his political opponents. A federal court upheld the rules in the face of an industry lawsuit, appearing to settle the matter once and for all.

Five key players for Trump on tech

Here are five of the biggest players to watch on technology:

  1. Peter Thiel, one of the co-founders of PayPal, was arguably the sole top Silicon Valley executive to have publicly backed Trump during the campaign. He is also reportedly considering a run for governor in California in 2018, in a race that may pit him against another billionaire, the Democratic environmentalist Tom Steyer.
  2. Senate Commerce Committee Chairman John Thune (R-SD) will oversee the confirmation process for Trump’s nominees to the Federal Communications Commission and will likely have a say in who is selected to chair the commission. Some of Thune’s legislative priorities could get more traction under the Trump administration, including sharing government-owned wireless spectrum with the private sector, rewriting the Communications Act and expanding broadband access to rural communities.
  3. FCC Commissioner Ajit Pai is widely seen as Tom Wheeler’s likely successor as chairman of the FCC. As chairman, Pai will get to set the FCC’s agenda and potentially reverse policies imposed under Wheeler, including net neutrality. Pai has already expressed interest in reevaluating the rules as soon as possible.
  4. House Telecommunications Subcommittee Chairman Marsha Blackburn (R-TN) is an outspoken opponent of the net neutrality rules enshrined in the FCC’s Open Internet Order.
  5. The Trump transition’s FCC landing team will be in charge of setting the agenda and recommending hires for the new administration when it takes over the agency. The group consists of three scholars from the conservative American Enterprise Institute: Roslyn Layton, Mark Jamison and Jeffrey Eisenach, as well as David Morken, the founder of Republic Wireless and Bandwidth.com. Layton, Jamison and Eisenach are all critics of net neutrality and are generally seen as traditional conservatives when it comes to telecommunications policy.

Investigation into the Political File Practices of OTA Broadcasting, Licensee of Station KAXT-CD

The Federal Communications Commission has entered into a Consent Decree to resolve an investigation into the political file practices of OTA Broadcasting, licensee of Station KAXT-CD, San Francisco, CA.

Section 315(e) of the Communications Act of 1934 and Section 73.1943 of the Commission’s Rules require licensees to maintain political files for public inspection that contain specific information about certain types of political advertisements. In November 2016, the FCC opened an investigation into whether OTA Broadcasting had failed to place required information into Station KAXT-CD’s political file for paid political advertisements by or on behalf of legally qualified candidates for the California State Assembly. The investigation revealed a number of omissions. s. To settle this matter, OTA Broadcasting has agreed to establish a program among all of the broadcast stations of which it is the licensee to ensure their future compliance with the political file disclosure obligations. In addition, OTA has agreed to pay a civil penalty in the amount of $32,000 for its past misconduct.

What Commerce Dept Nominee Ross Said About Tech Policy During Confirmation Hearing

President-elect Donald Trump’s pick for commerce secretary, Wilbur Ross, testified before the Senate Commerce Committee, touching on tech subjects ranging from wireless spectrum to broadband deployment. The Commerce Department has broad responsibilities in the tech field, including jurisdiction over the federal government’s airwaves, the US Patent and Trademark Office and national science labs. Most notably, Ross said he would push to get government agencies to free up unused spectrum, a longstanding goal of Commerce Committee Chairman John Thune (R-SD). “We need more spectrum in the private sector, and I will try my best to help convince those government agencies that have spectrum and don’t really need it to permit it to be commercialized,” he told the committee.

Ross also said he would work to balance privacy protections and data protectionism in data-transfer agreements such as the EU-US Privacy Shield pact. Later, he said there would need to be a balance between national security and freeing up airwaves. He also said government airwaves could “help extend broadband to more rural communities and other segments that are underserved.” Transition of the Internet Assigned Numbers Authority will remain in place, Ross said. “As I understand it, there is no real alternative on the table to the ICANN situation. So, for the moment, there’s nothing else to consider,” Ross said. Sen Ted Cruz (R-TX), who was opposed to the transfer of power, pressed Ross further on the issue. Ross said that if he found “a realistic alternative,” he would explore it.

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