February 2017

Weekly Digest

Is This What Transparency Looks Like?

Is This What Transparency Looks Like?

You’re reading the Benton Foundation’s Weekly Round-up, a recap of the biggest (or most overlooked) telecommunications stories of the week. The round-up is delivered via e-mail each Friday; to get your own copy, subscribe at www.benton.org/user/register

Robbie's Round-Up for the Week of February 6-10, 2017

Lifeline Providers Contest Order Revoking Lifeline Broadband Provider ETC Status

FreedomPop met with Federal Communications Commission Chairman Ajit Pai’s Senior Counsel on February 3, 2017, to contest the order revoking all previously-granted Lifeline broadband provider designations, including the one granted to FreedomPop. FreedomPop asserted the order is flawed and that, at minimum, this matter deserved further consideration so the FCC could provide a transparent and timely path forward for willing service providers looking to bring innovative and competitive broadband services to eligible Lifeline consumers. Boomerang Wireless and KonaTel also met with Chairman Pai’s Counsel and expressed the same concerns regarding revocation of their designations.

Navajo Nation Expresses Concern With Timeframe for Subscribers to Provide Lifeline Documentation

The Navajo Nation sent a letter to Federal Communications Commission Chairman Ajit Pai on February 3, 2017 to express concern with the recent Universal Service Administrative Company decision to require Navajo Nation Lifeline subscribers to provide documents verifying their identity within 45 days. The Navajo Nation said many subscribers live in remote areas with no mail service, and asked the FCC to direct USAC to work with the carriers and the Navajo Nation Telecommunications Regulatory Commission to resolve the issue in a way that will not jeopardize subscribers’ safety.

A law for the next 21 years

[Commentary] Few lawmakers could have envisioned how the world has changed since Congress passed the Telecommunications Act of 1996, which promoted competition and lifted some regulations, allowing phone, cable TV and media companies to transform their business models to compete head to head. Just 20 million American adults had access to the Internet back then, through dial-up services like America Online, CompuServe or Prodigy.

While we have seen great progress and opportunity from broadband connectivity, we need updated telecom laws to acknowledge the dramatically shifting lines of competition, to clarify the rules of the road for internet providers and ensure that consumers and businesses continue to enjoy the benefits from our increasingly connected world. The Telecom Act was a remarkable success story but to keep our innovation economy moving, American consumers deserve a blockbuster sequel.

[Jonathan Spalter is USTelecom President & CEO]

Rethinking Children's Advertising Policies for the Digital Age

This article describes major changes in how video content and advertising is delivered to consumers. Digital technologies such as broadband allow consumers to stream or download programming. Smart phones and tablets allow consumers to view screen content virtually anywhere at any time. Advertising has become personalized and integrated with other content. Despite these major changes in the media markets, the framework for regulating advertising to children has not changed very much since the 1990s. This article argues that the existing regulatory framework must be reinvented to protect children in the digital age. It uses Google’s recently introduced YouTube Kids app (“YTK”), which is designed for use by children aged 5 and under, to illustrate a range of unfair or deceptive marketing practices – such as unboxing videos, brand channels, and influencer videos. Many of the videos available on the YTK app, would violate the FCC’s children’s television rules if they were shown on broadcast or cable television. The article describes the relative roles and effectiveness of the FCC and FTC in preventing advertising that takes advantage of children, who because their cognitive abilities are still developing, do not distinguish advertising from other content or understand the purpose of advertising. It identifies the traditional rationales for limiting advertising to children and finds that the same or greater concerns exist today. Finally, it discusses the prospects for updating protections for children in the digital age.