May 2017

More Tech Reaction to Blackburn Privacy Bill

Oracle plans to send a letter voicing its support of House telecom subcommittee Chairman Marsha Blackburn's (R-TN) new privacy bill. The recently introduced legislation would require both Internet service providers and so-called edge providers including Google and Facebook to develop opt-in policies for users to share their sensitive information, including browsing histories. Oracle senior vice president Ken Glueck said the bill creates parity among industries and also starts discussion on what should be considered sensitive information. "I think in my mind, location information is far more sensitive than web browsing," Glueck said. "But that's a debate that has to be had."

AT&T also offered support: "We have always said consumers expect their online data to be protected by a comprehensive and uniform privacy framework that applies across the entire internet ecosystem and includes operating systems, browsers, devices, ISPs, apps, online services and advertising networks," spokesman Michael Balmoris said, adding that, "We support Chairwoman Blackburn for moving the discussion in that direction, and we look forward to working with her as this legislation moves forward." USTelecom and CTIA had no comment at this time. Mobile Future did not respond to a request for comment. Meanwhile, the Internet Association is set to huddle with Chairman Blackburn. The group has already shared its opposition to the legislation and said that the bill has the potential to "upend the consumer experience online and stifle innovation."

Not to be deterred, Chairman Blackburn called out consumers as well in her response to these critiques. "I thought the Internet Association would be more supportive of protecting consumers," she said. "I think if you ask the American people if they're OK with having less control over their online privacy so companies can sell their data - they'd say no."

The Electronic Frontier Foundation also said it wouldn't support the bill in its current form, pointing to its preemption of state user privacy laws and the uniform treatment of ISPs and online companies as problematic. "The complications that the bill create by treating everything the same really stems from the fact that these are really different industry sectors and the markets are extraordinarily different," EFF legislative counsel Ernesto Falcon said. "It's an open field on the internet. People have choices, and new companies are coming in all the time. That's not the case at all when you're talking about broadband access."

Sen. Mike Lee (R-UT) is considering some sort of Senate version of the legislation and we can now add Sen. Steve Daines (R-MT) to that list as well. "Sen. Daines worked in the private sector for over 12 years and understands the importance of protecting personally identifiable information," an aide from his office said in an email. "Steve is looking into this proposal and discussing it with Montana stakeholders."

Cities Clamor for More Clout at FCC

The rules of broadband are changing, and local governments want a say in how they evolve.

In an ex parte filing l with the Federal Communications Commission, several municipal officials, along with a representative of the National League of Cities, outlined a recent meeting with FCC Commissioner Mignon Clyburn and a member of her legal staff. The city officials voiced their concern that the newly-formed Broadband Deployment Advisory Committee (BDAC) is lacking in representation from local municipal governments, and that industry executives and advisors make up an overwhelming proportion of the committee's membership. According to the letter, the officials "encouraged the Commission to work in the direction of partnership with, rather than preemption of, local officials, who share the Commission's goal of closing the digital divide."

The National League of Cities notes that more local representatives have been appointed to BDAC working groups of late, but the organization argues that working group participation isn't enough and that the Commission should "increase the number and diversity of local officials on the BDAC to a level comparable with the number and diversity of industry officials."

Creating an economics-sensitive zone at the FCC

[Commentary] One less-publicized initiative of new Federal Communications Commission Chairman Ajit Pai may have profound impact on the agency’s policymaking agenda. Chairman Pai announced that he would be creating an Office of Economics and Data (OED) at the FCC. This office will combine economists and other commission staff to provide better input on rulemaking proceedings and transaction reviews, along with enhanced support for data management and research activities.

If implementation matches aspiration, OED may fill in a critical role for economic analysis that has been minimized in recent years. The FCC employs a general counsel and a large legal staff, but its chief economist is appointed from the ranks of academia to a one- or two-year term on a rotating basis. These individuals have served in this capacity with distinction, so the problem is not one of analytic talent. Rather, the chief economist’s short stint, combined with not reporting directly to the chairman, has minimized the impact of economic analysis in the decisionmaking process.