March 2017

Remarks of FCC Chairman Ajit Pai at the U.S. -- India Business Council

Our top priority so long as I serve as Chairman of the Federal Communications Commission is to close what I’ve called the digital divide—the gap between those with access to next-generation technologies and those without. We will work bring the benefits of the digital age to all Americans, no matter who they are or where they live.

How do we do that? We believe the most powerful tool for unleashing investment and innovation is a competitive free market—and are thus focused on rules that promote it. That’s why—consistent with decades of bipartisan tradition—we are pursuing a light-touch regulatory approach. This approach suggests that the Internet should be free from heavy-handed government regulation. It seeks to eliminate unnecessary barriers to infrastructure investment that could stifle broadband deployment. It aims to minimize regulatory uncertainty, which can deter long-term investment decisions. It favors facilities-based competition—that is, creating an incentive to build one’s own network instead of relying on another’s (which depresses the deployment incentives of each). It encourages competition among companies using any technology and from any sector—cable, telco, fixed wireless, mobile, and satellite. It embraces regulatory humility, knowing that this marketplace is dynamic and that preemptive regulation may have serious unintended consequences. And it places demands on the FCC itself—to be responsive to the public and to act as quickly as the industry it regulates. This regulatory approach, not the command-and-control rules of the 20th century, is most likely to promote digital infrastructure and opportunity.

FCC Proposes To Release 4G LTE Mobile Speed Data To Facilitate Implementation Of Mobility Fund II Support

Previously, the Federal Communications Commission affirmed that it sought to promote the deployment of 4G LTE in all areas where it would not be offered by the private sector in the absence of universal service support. To identify those geographical areas potentially eligible for such support, the FCC decided to use 4G LTE deployment at a minimum advertised download speed benchmark of at least 5 Mbps, based on service providers’ Form 477 filings. The FCC concluded that any census block not fully covered by unsubsidized 4G LTE of at least 5 Mbps advertised download speed will encompass areas that are eligible for support in the Mobility Fund II auction. While the FCC directed its Wireless Telecommunications Bureau (WTB) and the Wireline Competition Bureau (WCB) to make an initial determination of eligible areas by census block based on the Form 477 filings, it also stated its intention to “provide a robust process for interested parties to challenge our list of presumptively eligible areas for MF-II support.”

To aid interested parties, and to provide additional information about the geographical areas eligible for Mobility Fund II support, the WCB and WTB propose to release minimum advertised or expected 4G LTE speed data included in the December 31, 2015, and June 30, 2016 Form 477 filings (and any subsequent Form 477 filings) to facilitate Mobility Fund II analysis. Disclosure of the minimum advertised or expected speeds associated with service providers’ 4G LTE coverage submitted in their Form 477 filings will enable a transparent process for challenges, and final determinations of areas eligible for Mobility Fund II support. Strong public interest benefits support disclosing the minimum advertised or expected 4G LTE speeds.

Handcuffing Cities to Help Telecom Giants

[Commentary] It is good to be one of the handful of companies controlling data transmission in America. It’s even better — from their perspective — to avoid oversight. And it’s best of all to be a carrier that gets government to actually stop existing oversight. The stagnant telecommunications industry in America has long pursued the second of those goals — avoiding oversight, or even long-range thinking that would favor the interests of all other businesses and all other Americans over those of AT&T, Verizon, Charter, and Comcast — by proclaiming that there is something really magnificent coming any day now from the industry that will make anything regulators are worrying about irrelevant. And now that technique is at the heart of achieving Goal Three—wiping out oversight.

Case in point: Right now, plans are being implemented at the FCC and at least 17 state legislatures to block cities from constraining uses of their rights-of-way by private cellular companies for 5G deployments that — you guessed it — are coming any day now. In other words, if a city wants to set up a fair and competitive system that favors competitors, citizens, and long-range goals instead of the interests of a single big company—well, that would be illegal. This nationwide effort is aimed at, effectively, privatizing public rights of way.

Delivering on the Broadband Promise to All Americans

Congress continues to have significant concerns around how to design an infrastructure program to ensure that any dollars designated for broadband are spent wisely. Fortunately, there is a solution. We support an approach that places responsibility on the Federal Communications Commission to disperse any new broadband dollars through its Connect America Fund (CAF) and Mobility Fund (MF) programs. These two programs, as further refined in two orders adopted by the FCC in Feb 2017, provide clear evidence that the FCC has the expertise and the tools to manage a data-driven process that will ensure that any incremental broadband funding is directed where broadband does not currently exist and is needed the most.

To be clear, current CAF II and MF II dollars are unlikely to be sufficient to complete the job of getting broadband deployment to all these remote areas. By our estimate, the $198M/year that will be made available through the CAF II auction is only 21% of the FCC’s own calculated deployment costs for all eligible areas. To address this, bids will be scored and ranked, regardless of geography, from lowest to highest with support awarded to winning projects until funding is exhausted. And we fully expect the budget to run out before all eligible areas are funded. But these programs are the best way to use available dollars and, importantly, these programs leverage private investment to the maximum extent possible by awarding funds to the bidder willing to get the job done at the lowest cost. It’s a true public-private partnership.

To Jumpstart Broadband Buildout, Let Consumers Decide Who Gets FCC Subsidies

[Commentary] Here’s a five-step system to create portable consumer subsidies for broadband:

1) Use the Federal Communications Commission’s data to identify all areas unserved by broadband. Census blocks would be considered unserved if they lack broadband as defined by the FCC. Broadband is defined today as an evolving standard consisting of four attributes: speed (currently 25/3 Mbps), capacity (150 GB per month of data or the median household usage), latency (100 milliseconds) and price (median national price).
2) Use the FCC’s Connect America cost model to determine the appropriate level of public funding for each location in each census block. The FCC cost model was developed over many years with the cooperation of the nation’s telephone companies to calculate the cost of constructing, maintaining and operating fiber-to-the-premise networks. The FCC has used this model to calculate a level of subsidy necessary to build and provide service to every location in every census block throughout the country.
3) Make available such support to all internet service providers (ISPs) that are certified in states as eligible telecommunications carriers (ETC). The count of each ETC’s subscribers should only include broadband service and should be limited to one subsidy per location, similar to the limitation of the Lifeline program of one subsidy per household.
4) Every six months, when ISPs submit data to the FCC indicating geographic area, speed, technology and numbers of customers, each eligible telecommunications carrier that wishes to participate in the Connect America Fund would submit their data to the Universal Service Administrative Company. The fund administrator would compensate each carrier based upon the number of locations served with broadband and the subsidy per location per census block. The FCC would also continually update its information on where services were provided without the use of a subsidy in order to eliminate those areas from further public funding.
5) Any ISP could win back a customer it loses, and thereby win back the subsidy amount. This will encourage ISPs to continue to improve service offerings even in rural areas, and allow public funds to follow ongoing consumer decisions, rather than pre-set government decisions. Whether the service chosen is fiber-based, copper-based, wireless (fixed or mobile), satellite, drone or balloon, the FCC would get out of the business of determining the type of technology and attempting to compare the relative weights of technologies.

[Chambers is a partner at Conexon, LLC, a company dedicated to working with electric cooperatives interested in serving their members with broadband]

The Trump White House simply does not care about having a good relationship with the media

Counselor to the president Kellyanne Conway likes to say that the Trump administration and the media share “joint custody” of the country, as if the president and the press are a divorced couple. That might be an apt comparison (Jon Stewart also has likened Trump and the media to ex-lovers), but the White House seems totally uninterested in an amicable split. Witness White House press secretary Sean Spicer's reprimand of American Urban Radio correspondent April Ryan on Tuesday (“please stop shaking your head"), which offended many reporters, and his characterization over the weekend of Politico's Tara Palmeri as “an idiot with no real sources,” which offended even Breitbart News.

. Spicer's characterization of Palmeri as an “idiot” is particularly telling because he wrote it in an email to Breitbart. He didn't just blurt it out, in other words; he typed it, had a chance to reconsider — before anyone else would have read the insult — yet decided to leave it in his message and hit “send” anyway. Credit the White House with being authentic in this department, but remember that President Trump has bragged about being able to fake cordiality. His go-to explanation, when asked about his history of hobnobbing with — and donating money to — Democratic politicians is that he was not always genuine. President Trump is not playing the same game with the media, and voters have noticed. In a Monmouth University poll, 81 percent of respondents said President Trump has a worse relationship with the press than previous presidents did. Here's the survey result that President Trump should worry about: 58 percent said his bad relationship with the media has hurt his image.

The Future of Free Speech, Trolls, Anonymity and Fake News Online

To illuminate current attitudes about the potential impacts of online social interaction over the next decade, Pew Research Center and Elon University’s Imagining the Internet Center conducted a large-scale canvassing of technology experts, scholars, corporate practitioners and government leaders. Four major themes emerged from their responses:

Things will stay bad because to troll is human; anonymity abets anti-social behavior; inequities drive at least some inflammatory dialogue; and the growing scale and complexity of internet discourse makes this difficult to defeat.
Things will stay bad because tangible and intangible economic and political incentives support trolling. Participation = power and profits.
Things will get better because technical and human solutions will arise as the online world splinters into segmented, controlled social zones with the help of artificial intelligence (AI).
Oversight and community moderation come with a cost. Some solutions could further change the nature of the internet because surveillance will rise; the state may regulate discourse; and these changes will polarize people and limit access to information and free speech.

Is the Internet Causing Political Polarization? Evidence from Demographics

We combine nine previously proposed measures to construct an index of political polarization among US adults. We find that the growth in polarization in recent years is largest for the demographic groups least likely to use the internet and social media. For example, our overall index and eight of the nine individual measures show greater increases for those older than 75 than for those aged 18–39. These facts argue against the hypothesis that the internet is a primary driver of rising political polarization.