February 2017

ISPs ask lawmakers to kill privacy rules, and they’re happily obliging

Republican Sens are reportedly preparing a legislative move to overturn privacy rules that require Internet service providers to protect their customers' online data. Sen Jeff Flake (R-AZ) confirmed that he plans to introduce a resolution that would roll back the Federal Communications Commission’s broadband privacy rules via the Congressional Review Act (CRA), which allows Congress to eliminate agency rules with a simple majority vote. Sen Flake had a dozen co-sponsors on board as of last week, but he hasn't said when exactly he'll submit the resolution.

In the House, Communications Subcommittee Chairman Marsha Blackburn (R-TN) said last week she was speaking with colleagues in the Senate "daily" about how to best utilize the CRA to undo broadband privacy. The flurry of action comes shortly after industry lobby groups asked Congress to use the CRA to undo the privacy rules. The rules passed in October require home and mobile ISPs to get opt-in consent from consumers before sharing Web browsing data and other private information with advertisers and other third parties.

House members: EPA officials may be using Signal to “spread their goals covertly”

House Science Committee Chairman Lamar Smith (R-TX) and the Oversight Subcommittee Chairman Darin LaHood (R-IL) sent a formal letter to the Environmental Protection Agency’s Office of the Inspector General, expressing concern that “approximately a dozen career EPA officials” are using the encrypted messaging app Signal to covertly plan strategy and may be running afoul of the Freedom of Information Act. The open source app has gained renewed interest in the wake of the election of President Donald Trump. The congressmen note that the EPA has previously examined employee use of text messages to conduct government business and found that only a minuscule fraction of those messages was retained under FOIA.

President Trump: Flynn treated badly by 'fake media'

President Trump said his ousted national security adviser Michael Flynn was treated "unfairly" by the "fake media." At a joint press conference with Israeli Prime Minister Benjamin Netanyahu, President Trump blamed Democrats and leaks by the intelligence community for Flynn's resignation over his conversations with Russia. Nov 15’s comments are Trump's first in-person reaction to Flynn's resignation. “I think he’s been treated very, very unfairly by the media — as I call it, the fake media, in many cases,” President Trump said. “I think it’s really a sad thing he was treated so badly.”

Amazon and Google Consider Turning Smart Speakers Into Home Phones

Amazon and Alphabet’s Google are considering a new use for their popular home speakers: becoming the home phone. Amazon’s Echo or the Google Home could be used to make or receive calls, apparently, a functionality that would give them further control over consumers’ digital lives at home. The tech giants could launch the feature in 2017, but the effort is hung up over concerns about privacy, telecom regulations and emergency services. And they are aware of the inherent awkwardness of having phone conversations on a speaker. One concern is potential consumer anxiety over speaking on a device that has the ability to record conversations, according to one of the people. People consider phone conversations to be the third most sensitive data category, after social security numbers and health conditions, according to a study by Pew Research Center.

Verizon Said to Near Yahoo Deal at Lower Price After Hacks

Verizon Communications is close to a renegotiated deal for Yahoo! Inc.’s internet properties that would reduce the price of the $4.8 billion agreement by about $250 million after the revelation of security breaches at the web company, apparently. In addition to the discount, Verizon and the entity that remains of Yahoo after the deal, to be renamed Altaba Inc., are expected to share any ongoing legal responsibilities related to the breaches, said the people, who asked not to be identified discussing private information. An announcement of the new agreement could come in a matter of days or weeks.

MacArthur Foundation Names 8 Semifinalists in 100&Change Grant Competition

Eight bold solutions to critical social problems were named semi-finalists in 100&Change, a global competition for a single $100 million grant from MacArthur. The proposals include 1) providing libraries and learners free digital access to four million books, 2) educating children displaced by conflict and persecution, and 3) providing virtual access to specialist medical care for underserved US patients.

1) The Internet Archive would expand libraries’ ability to deliver on their role as great equalizers, providing access to books and other resources to those who might not otherwise be able to afford them, regardless of geography. The Internet Archive would enable libraries to unlock their analog collections for a new generation of learners, enabling free, long-term, public access to knowledge. The project will curate, digitize, and make available in digital form four million books to any library that owns the physical book. The Internet Archive would start with the books most widely held and used in libraries and classrooms. The scale of the project will reduce digitization costs by 50 percent or more. The Internet Archive has prototyped this model for more than six years, digitizing 540,000 modern books originating from 100 partners and lending them to the public in a process that mirrors the way libraries traditionally lend physical books.

2) The International Rescue Committee and Sesame Workshop would develop and deliver multi-media content to meet the critical educational needs of children affected by conflict. The partnership would provide learning opportunities for refugee children, as well as their parents and caregivers, in Iraq, Jordan, Lebanon, and Syria, enabling them to grow and thrive. The new educational content would feature the trusted and recognized Sesame Street Muppets—adapted to reflect and mitigate the adverse effects of experiences of refugee children and their parents. Multiple digital delivery platforms plus printed materials would be used to reach the largest possible number of children and their families. The project will tap extensive distribution networks reaching refugee and host communities via schools, community centers, social protection programs, and health clinics. The initiative would create programs and culturally relevant content for children, as well as tools to help parents and caregivers more effectively engage with them to build resiliency and support learning. It will establish an evidence-based model that can be adapted and redeployed by other organizations to reach millions more children in crisis.

3) Led by the Human Diagnosis Project, Specialty Net is an alliance of the nation's physician societies, licensing boards, and academic institutions that aims to close the specialty care gap for the nation's uninsured and underinsured. Specialty Net is an open, online system that seeks to provide public health and safety net institutions low-cost access to specialty care expertise. Specialty Net would engage 100,000 volunteer specialists to provide electronic consultations to three million patients in the U.S. safety net system over the next five years. Researchers at Harvard Medical School, Johns Hopkins University, and the University of California, San Francisco, are currently validating the system’s technology performance, cost, outcomes, and educational and training value. Patients would receive the specialty care they need, without having to wait or pay out of pocket. Specialists would receive credits toward their medical education, ongoing licensing, and maintenance of certification requirements. Each patient helped will add to an online system that combines collective intelligence with machine learning, helping to close the safety net specialty care gap and, ultimately, deliver this expertise globally.

Rural Broadband, Restoring FCC to 5 Members Top Walden's Agenda

House Commerce Committee Chairman Greg Walden (R-OR) outlined a broad agenda for the committee and its Communications Subcommittee Feb 14, with items ranging from legislative action on Title II to a comprehensive examination of Federal Communications Commission and National Telecommunications and Information Administration "reauthorization" to accelerated rural broadband deployment to increased oversight of federal cybersecurity initiatives.

At the monthly luncheon of the Media Institute, Chairman Walden endorsed the "process reforms" that FCC Chairman Ajit Pai (who was in the audience) has already introduced. Chairman Walden complimented Pai for successfully doing administratively "what Congress has been trying to do legislatively." As for the Open Internet rules, the Chairman Walden said, "Republicans are open to legislative solutions" and that net-neutrality decisions "should be done legislatively." But he acknowledged "it will take time" to develop new procedures, saying, "We have draft legislation" in the works. Chairman Walden called deployment of rural broadband a top priority on the Committee's communications agenda, pulling in examples of the need for wireless broadband. In particular, he emphasized the need to "lower the cost of broadband development."

Concerns about FCC E-rate letter on fiber broadband deployment

While we anticipated the Federal Communications Commission would take a look at its Universal Service Fund (USF) programs once Chairman Ajit Pai was in place, we did not anticipate the speed at which moves to review and evaluate previous actions would occur. After the Commission retracted the “E-rate Modernization Report,” our E-rate ears have been itching with concern that our bread and butter USF program would attract undue attention. We did not have long to wait.

Last week, FCC Commissioner Michael O’Rielly sent a letter to the Universal Service Administrative Company (USAC) seeking detailed information on libraries and schools that applied in 2016 for E-rate funding for dark fiber and self-provisioned fiber. Our main concern is that the tenor of the Commissioner’s inquiries calls into question the need for these fiber applications. The Commission’s reforms to allow self-construction costs for dark fiber and applicant owned fiber were correct in 2014 and remain so. In addition, applicants will evaluate and select the best, most cost effective fiber option for their library or school. If the last few weeks are any indication of activity at the FCC, we’re in for a busy spring.

There's only one choice for FTC chair, and she's already got the job

[Commentary] To his credit, President Donald Trump has appointed sitting Commissioner Maureen Ohlhausen as acting chair of the Federal Trade Commission. Given all of the things on the FTC's plate, President Trump would be wise to make Ohlhausen's appointment permanent. Like her newly appointed counterpart, Chairman Ajit Pai at the Federal Communications Commission, Ohlhausen is one of those few public servants who truly is a "lawyer's lawyer," with a profound respect for the bounds of her agency's statutory mandate. Indeed, while often cast as a regulatory agency, the FTC is better described as a law-enforcement agency. And, given such great power, the FTC must wield it judiciously.

Like it or not, the issues facing the FTC are complex and need to be approached with analytical rigor and honesty. President Trump has already made an excellent pick with Ajit Pai as chairman of the FCC. He should bookend the set by making Maureen Ohlhausen permanent chair of the FTC.

[Lawrence J. Spiwak is the President of the Phoenix Center for Advanced Legal & Economic Public Policy Studies.]

20th Century Fox Used Fake News to Publicize ‘A Cure for Wellness’ Movie

Making the most of the fractured political and media landscape, 20th Century Fox created a group of fake news sites as part of a viral marketing campaign for its new film “A Cure for Wellness.” The sites displayed ads for the movie and slipped references to its plot alongside made-up stories about divisive topics like abortion, vaccines and President Trump. Fox used at least five fake news sites designed to look like local news media — The Sacramento Dispatch, Salt Lake City Guardian, Houston Leader, NY Morning Post and Indianapolis Gazette — to stir online outrage and drum up interest in the movie, which was produced by New Regency Productions and is to come out this week. It used other fake sites to promote the film as well, including one designed to resemble HealthCare.Gov and another for a fake bottled water company. Regency Enterprises and 20th Century Fox acknowledged their role in the fake news operation in a statement on Feb 14.