August 2017

One broadband choice still counts as “competition” after court decision on Business Data Services

A Federal Communications Commission decision to eliminate price caps in much of the business broadband market can remain in place after a federal judge denied a petition to halt the FCC order. The FCC's Republican majority in April imposed a new standard that deems certain local markets competitive even when they have only one broadband provider. In those markets, incumbent phone companies like AT&T, Verizon, and CenturyLink will be able to charge higher prices for business data services that are delivered over copper-based TDM networks. Companies that will have to pay higher prices sued the FCC. They asked for a stay that would halt the elimination of price caps pending the outcome of the case.

But Aug 7, the US Court of Appeals for the 8th Circuit denied the motion for stay. The order provided no explanation for the denial. The FCC's decision eliminates price caps in a county if 50 percent of potential customers "are within a half-mile of a location served by a competitive provider." A county is now also considered competitive if 75 percent of Census blocks have a cable provider. (There are no price caps for cable-based business data services.)

As net neutrality dies, one man wants to make Verizon pay for its sins

Imagine if you took every single gripe you've had with Verizon over the past five years — the time it blocked Nexus 7 tablets for five months; the time it forced you to pay $20 per month for tethering; the time it tried to make you use a mobile wallet app called "ISIS" — and finally put your foot down. For a year, you spend free moments holed up in library stacks, speaking with experts, and researching and writing a sprawling legal complaint about the company's many, many misdeeds. And then you file it all with the Federal Communications Commission, hoping to get some payback. That's exactly what Alex Nguyen did. And one day very soon, Verizon may have to answer for it.

When he wrapped up in the middle of 2016, Nguyen paid a $225 filing fee and handed his complaint over to the FCC. It would end up being the only formal complaint filed under the net neutrality rules. Now one year after Nguyen's initial filing date, all the arguing is over, and the case is the in hands of the commission's Enforcement Bureau to either shoot down, deliver a fine, or demand Verizon make some changes. "Verizon and I made our cases," Nguyen said. "It looks as though [the FCC's Enforcement Bureau] staff any day now could make a decision."

FCC Asks for Help Fixing Faulty Broadband Provider Data

The Federal Communications Commission wants recommendations on how to improve its data collection process for phone and internet access after becoming aware the agency was basing policies on increasingly flawed information. On Aug 4, the FCC announced its plan to revise the filing process for Form 477, a data set the agency uses to analyze broadband coverage in different areas of the country and show the public what providers they could access.

Internet and phone providers submit data on their coverage in different regions every six months. Many have called the data set inaccurate and unreliable, reporting a number of instances when the FCC says broadband providers are available in areas they don’t cover. The agency aims not only to refine the data set and purge incorrect information but also to reassess what data it needs to paint an accurate picture of nationwide coverage. According to Pai, the FCC may be asking for too much data—some of which it may not need for analysis—and that could overburden companies and discourage them from filing properly.

“Alexa, Understand Me”

From that modest start, voice-based AI for the home has become a big business for Amazon and, increasingly, a strategic battleground with its technology rivals. Google, Apple, Samsung, and Microsoft are each putting thousands of researchers and business specialists to work trying to create irresistible versions of easy-to-use devices that we can talk with. “Until now, all of us have bent to accommodate tech, in terms of typing, tapping, or swiping. Now the new user interfaces are bending to us,” observes Ahmed Bouzid, the chief executive officer of Witlingo, which builds voice-driven apps of all sorts for banks, universities, law firms, and others.

For Amazon, what started out as a platform for a better jukebox has become something bigger: an artificial intelligence system built upon, and constantly learning from, human data. Its Alexa-powered Echo cylinder and tinier Dot are omnipresent household helpers that can turn off the lights, tell jokes, or let you read the news hands-free. They also collect reams of data about their users, which is being used to improve Alexa and add to its uses. The ultimate payoff is the opportunity to control—or at least influence—three important markets: home automation, home entertainment, and shopping.

ACLU: Absent warrant standard, police could monitor anyone via location data

Lawyers representing a man convicted of six robberies in the Detroit area have now filed their opening brief at the Supreme Court in one of the most important digital privacy cases in recent years. This case, Carpenter v. United States, asks a simple question: is it OK for police to seize and search 127 days of cell-site location information (CSLI) without a warrant? Previously, lower courts have said that such practices are compatible with current law. But the fact that the Supreme Court agreed to hear the case suggests that at least four justices feel that perhaps the law should be changed.

In Carpenter, as is the case in countless modern criminal cases, law enforcement was able to obtain the relevant records directly from the mobile phone provider with a court order that has less stringent requirements than a warrant. This is not a trivial distinction. A so-called "d-order" can be circumspect with how information is obtained by authorities. It does not, as the Fourth Amendment demands, require as much particularity. A warrant, unlike a d-order application, also mandates a signed and sworn affidavit ("on oath or affirmation"), as the Constitution requires, which describes the "places to be searched and the things to be seized." Carpenter's attorneys, many of whom are from the American Civil Liberties Union, argue in their filing that the current legal standard gives the government too much leeway. "If the Court were to accept this argument, the government could use this tool to monitor the minute-by-minute whereabouts of anyone—from ordinary citizens to prominent businesspersons to leaders of social movements," they wrote in their August 7 brief.

Tribune: We're on Track to Close Sinclair Deal

Peter Kern, Tribune Media's CEO said Aug 9 that Sinclair's $3.9 billion bid to buy Tribune's 42 TV stations remains "on track," while acknowledging the Department of Justice had issued a second request for information on the deal from both Sinclair and Tribune. Such requests for additional info are not uncommon. That came in Tribune's announcement of its second-quarter financial results.

Sinclair and Tribune have signaled that on track would be a close by the end for the fourth quarter. The DOJ request came on Aug. 2 and extends the Hart Scott Rodino waiting period for consummating a transaction by 30 days after the companies have "substantially complied" with the request, unless the deal submission gets early termination, meaning DOJ finds no reason to block or condition the deal. The FCC has received numerous petitions to deny the deal, or delay a decision until after the FCC completes a review of media ownership rules, which could affect that timetable. Sinclair and Tribune have until Aug. 22 to respond to those petitions and various comments that were critical but fell short of asking for outright denial.

Media Watchdogs Are Suddenly Worried About Sinclair

[Commentary] The mainstream media has suddenly discovered Sinclair. Oh no! cry the media watchdogs -- this company known formally as Sinclair Broadcast Group has a conservative slant to its newscasts. That's a no-no, say the watchdogs, even though many sources of news on TV seem to have a slant these days. But the problem isn't the slant, of course. It's the conservative slant.

Sinclair is in the media watchdogs’ crosshairs because it is the largest single owner of local TV stations in the United States in terms of the number of properties the company owns. Many of the stations have local news. I have seen these “too-powerful” arguments arise time and time again over the course of my 34-year career covering television. As a result, I have come to the conclusion that a company such as Sinclair could own a million stations and the commentaries of Boris Epshteyn would not be any more influential or watched by a bigger audience than any number of other commentators from MSNBC to Fox News Channel.