February 2017

FCC Chairman Pai’s Alternative Personalities, Facts, Economics and Law—Part Two

[Commentary] Who made the following public statement: "What would be best for consumers? My view is pretty simple. Our goal should not be to unlock the box; it should be to eliminate the box. If you are a cable customer and you don’t want to have a set-top box, you shouldn’t be required to have one. This goal is technically feasible, and it reflects most consumers’ preferences—including my own."
A) President Donald Trump;
B) FCC Chairman Ajit Pai
C) Former FCC Chairman Thomas Wheeler
D) Harold Feld, Senior Vice President, Public Knowledge (an advocacy group)
The answer: B. Perhaps Chairman Pai will replace the prior set-top box proceeding with one more likely to achieve his stated objectives. Maybe not. Chairman Pai appears to send mixed messages.

FCC Chairman Pai’s Alternate Facts Part 3, Privacy "Protection" for Broadband Consumers

[Commentary] Federal Communications Commission Chairman Ajit Pai has opposed broadband consumer privacy protection safeguards largely based on a false dichotomy: that Internet content providers, like evil Google and Facebook could collect, process and exploit consumer usage data, while ISPs could not. This is a false dichotomy, because consumers willingly opt to barter their usage data in exchange for “free” advertiser supported content access, while broadband subscribers will have to allow such surveillance and sales of usage data as a hidden or obscure cost of service.

Rural broadband bills fail to advance in Colorado

In Jan, Gov John Hickenlooper (D-CO) announced the creation of a broadband office that he said would move the state from 70 percent to 80 percent coverage by the end of 2018 and to 100 percent by 2020. He'll likely have to do it with little to no help from the General Assembly.

In the past two weeks, efforts by Democratic senators to find ways to expand broadband coverage to mostly rural areas have fallen by the wayside, lacking support in the Republican-controlled Senate. The first bill would have lifted a restriction on local governments (cities, towns and counties) that want to offer cable television, telecommunications service, or high-speed Internet access. State law currently requires those local governments to seek voter approval before creating their own local broadband access. That bill died on a 4-3 vote in the Senate Business, Labor and Technology Committee. The second bill, also killed by the business committee, would have required the Public Utilities Commission to move a little faster on implementing parts of the state's 2014 broadband reform law. That included coming up with a definition of effective competition; once that's done, the PUC would be expected to transfer more dollars from a state account that is funded by fees, paid for by telecommunications companies, based on landline services. The fund, known as the "High Cost Support Mechanism," has seen revenues decline in the last few years as people move away from having landlines.

Commissioner O'Rielly Statement on Commission Consideration of Broadband Privacy Interim Stay Order

As I indicated in my dissenting statement when the previous Commission adopted these rules, I believe they are fatally flawed from the standpoints of both statutory authority and public policy. I support the Chairman's proposal to allow the Commission and Congress time to take another look at these ill-considered rules before they have a chance to throw broadband providers' data security practices into unsettled territory.

Additionally, I support the Chairman's decision to give Commissioners a chance to weigh in here in a process similar to that I proposed in a recent blog post. Agree or disagree with the underlying proposal, everyone should commend the Chairman's move away from the delegated authority abuses we have seen in the past, toward more input from Commissioners. I certainly will commit to record my vote on this item by March 2 in exchange for the new opportunity to make my voice heard at the Commission level, and hope that this opportunity will be made available to Commissioners as a matter of course going forward.

Sen Markey Joins Public Interest Groups in Opposition to Congressional Plan to Kill Online Privacy

Sen Ed Markey (D-MA) laid down another marker on the issue of broadband privacy, headlining a press conference with privacy groups vowing to fight Republican efforts in Congress and at the Federal Communications Commission to roll back FCC broadband privacy rules. Sen Markey said that Democrats would wage a historic battle to preserve the rules, as well as the Open Internet order to which it is linked. He called Internet service providers gatekeepers and said FCC Chairman Ajit Pai was doing their bidding by trying to roll back the rules, starting with data security protections. He said that would allow ISPs to ignore best practices and make sensitive information more vulnerable.

“Without the FCC’s broadband privacy rules, broadband providers will be able to sell dossiers of the personal and professional lives of their subscribers to the highest bidder without their consent.‎ We cannot allow the Trump administration and Congressional Republicans to put corporate interests before consumer protections. I will oppose any effort to roll back these important broadband privacy rules, either by Congress or at the FCC,” Sen Markey said.

Rep Pallone Seeks GAO Study of Broadband Privacy Oversight

The Government Accountability Office has been asked by House Commerce Committee Ranking Member Frank Pallone (D-NJ) to study the status of broadband privacy regulatory authority over both Internet service providers and the edge. Rep Pallone points to the bifurcated oversight of Internet service providers (the Federal Communications Commission) and edge providers (Federal Trade Commission) and the "fluctuating state of the law and underlying threats to individuals' privacy and security online." Those include that a court case has brought into question the FTC's ability to regulate edge provider privacy if that edge provider is owned by a common carrier—such as Verizon buying Yahoo—and the fact that the FCC's broadband privacy framework is under review by current FCC Chairman Ajit Pai.

In a letter to comptroller general Gene L. Dodaro, Rep Pallone asks for GAO to study and report back to the committee, pointing out that "[w]ith the near universal use of the internet, and the rapid expansion of connected devices, corporations now have more information about American consumers than ever before."

Sen King Leads Letter Calling on FCC to Protect Broadband Funding for Rural Healthcare Clinics

Sen Angus King (I-ME) led five of his colleagues, including Sen Susan Collins (R-ME), in sending a bipartisan letter calling on the Federal Communications Commission to work to avoid cuts or spending reductions to the Rural Health Care (RHC) Program, which helps deliver vital health care services and telemedicine to people who live in rural areas by providing funding for broadband. The letter specifically calls on the FCC to act on the Schools, Health & Libraries Broadband (SHLB) Coalition’s recently filed letter, which recommends funding mechanisms that would avoid service disruptions to patients and health clinics in rural areas.

“We ask you to address the future of the RHC as soon as possible. The Commission can and should take steps to avoid flash cuts or sudden funding reductions for health care providers that use this vital program. […] Because previously committed funds have already been collected, re-allocation of these funds will not require increased universal service fund collections. The Commission could take such action immediately on an interim basis to ensure that health care providers and consortia do not face funding reductions, thereby giving the Commission time to work on strengthening the future of the RHC program," the letter read.

USDA Helps Expand Broadband Service in Rural Illinois and Oklahoma

Acting Deputy Under Secretary for Rural Development Roger Glendenning announced that the US Department of Agricutlure is awarding $19.3 million in loans to provide broadband in rural portions of Illinois and Oklahoma.

In Oklahoma, Southern Plains Cable, LLC will receive a $15.3 million loan to build a fiber-optic broadband network serving a 55-square-mile area that includes the communities of Anadarko, Verden, and Chickasha. Illinois' Moultrie Independent Telephone Company will receive a $4 million loan to make upgrades to fiber service in a portion of its service territory. Both loans are being provided through USDA's Telecommunications Programs of the Rural Utilities Service.