February 2017

Newly minted Federal Communications Commission Chairman Ajit Pai took a page out of President Trump’s playbook and issued his own version of executive orders to undercut affordable broadband, greenlight more media consolidation and endanger key protections for internet users. Chairman Pai bypassed the democratic process, using “delegated authority” to deprive the full Commission of a vote (something he’s repeatedly railed against other chairs for doing), and shoving all these orders out the door on a Friday afternoon. Unfortunately for Chairman Pai, we’re committed to holding him accountable every day of the week. Here are the actions Trump’s new chairman tried to sneak under the radar:
1. Closed the FCC’s inquiry into zero-rating programs.
2. Stopped nine companies from providing discounted broadband to low-income families.
3. Killed the FCC’s guidance to broadcasters regarding shared service agreements and consolidation.
4. Killed a fledgling FCC inquiry regarding flexible spectrum use.
5. Rescinded a report on improving the nation’s digital infrastructure.
6. Rescinded a progress report on E-rate program modernization.
7. Set aside two orders for violations of political-file rules.
8. Set aside a white paper from the FCC’s Homeland Security Bureau addressing cybersecurity risk reduction.
9. Withdrew requirement that noncommercial stations file ownership-diversity data.

President Trump has called network neutrality a "top down power grab' by then-President Obama. And new Federal Communications Commission Chairman Ajit Pai cast one of the two votes against the measure. Chairman Pai delivered a fresh sign recently that his take on net neutrality differs from that of his predecessor. On Feb 3, he announced the FCC was closing an investigation into wireless services offering content that doesn't count against data caps — a practice that, depending on your point of view, could be considered a net neutrality violation or a smart business tactic.

To unravel the net neutrality rules further, the FCC could begin drafting new ones or selectively enforce -- or not enforce -- rules on the book. Congress could act, too. What could this mean for consumers? More data-free offerings; Some content flows faster; Some content flows ... not so fast; Competition -- but more or less?

[Commentary] Building broadband infrastructure, as with any infrastructure, raises three questions: how to finance it, what projects are eligible to receive the funding, and how the funds are distributed. I can think of seven potential approaches, none of which are exclusive and many of which are complementary:

Target anchor institutions—schools, libraries, health facilities, and other community institutions—to assure they have abundant bandwidth.
Target middle-mile facilities—the networks between the internet backbone and the local, final connection– to lower operating costs for multiple providers in low-density areas.
Target final-mile facilities, with a focus on communities that lack access to a network offering a certain speed threshold. One could build on the Federal Communications Commission’s current Connect America Fund structure to accelerate a next-generation buildout in rural areas, something I’ll discuss in more detail in a future post.
Target next-generation 5G mobile networks and the Civic Internet of Things to bring intelligence to the water, sewer, electricity, and transportation grids underlying our communities. Both these new platforms will share a need for, and operate over, a fiber network. The infrastructure fund could accelerate such deployments either through a model cities approach of funding demonstration projects or by funding many projects to create scale and standards.
Target digital enterprise zones. The new Federal Communications Commission Chairman Ajit Pai recently proposed to use broadband to improve the economics of areas of persistent poverty. Pai deserves praise for both prioritizing government resources to attack poverty and laying out a detailed proposal. While I have my questions on the specific proposals, I support the direction Pai articulated and hope any infrastructure plan adopts his agenda.
Pursue a state block grant strategy. Distributing the funds through state block grants that rely on a formula, such as per capita funding, may prove a productive path, particularly if the states have broad discretion for eligibility.
Pursue a city block grant strategy, but rather than distributing the funds on a per capita basis, as with states, funds would be distributed to target cities that adopt certain best practices of deployment.
(This is the first of three blogs discussing the state of broadband policy as a new administration and Congress begin.)

The Media Action Center (MAC) is declaring victory after Entercom announced it will turn its license for radio station KDND in Sacramento. MAC had urged the Federal Communications Commission to hold a hearing on the station’s license renewal based on KDND’s 2007 “Hold Your Wee for a Wii” contest, which led to one of the contestants, Jennifer Strange, 28, dying of water intoxication.

Entercom is alerting listeners that the station’s format will live on at a new dial position as it takes over what has been hot AC “Star 106.5” KUDL, which has been the company’s lowest-rated FM in the ownership cluster. In a brief filing with the FCC, Entercom’s attorney said the company plans to power down KDND on Feb. 8, and then hand in the license with a request that the station authorization be canceled. The company makes no explicit mention of the situation that put KDND at risk.