August 2017

The Economic Benefits of Ubiquitous Broadband: Why Invest in Broadband Infrastructure and Adoption?

[Commentary] How much is being lost in economic benefits because fixed broadband connectivity is not ubiquitous? A 2017 study by Ohio State University Swank Program on Rural-Urban Policy estimated the economic benefits of providing broadband access to unserved households in Ohio. To calculate these estimates, the Ohio State study used customer surplus – what a consumer is willing to pay for a service compared to what they are actually paying. In other words, consumer surplus is the average amount of value a consumer receives from Internet service above and beyond the price.

The most conservative of scenarios, which assumes full access but only 20 percent adoption, would generate an impact of $4.5 billion per year or $43.8 billion over fifteen years in the US. In non-metropolitan counties, this same scenario would yield $2.3 billion annually or $22.7 billion over fifteen years.

[Dr. Roberto Gallardo is Assistant Director & Community & Regional Economics Specialist of the Purdue Center for Regional Development at Purdue University.
Dr. Mark Rembert is the Graduate Research Associate at the Swank Program on Rural-Urban Policy at the Ohio State University.]

MOBILE NOW Act

The Senate approval by unanimous consent of the (S. 19), a bill they introduced to boost the development of next-generation gigabit wireless broadband services, including 5G, by ensuring more spectrum is made available for commercial use and by reducing the red tape associated with building broadband networks. Elements of :

Making 500 megahertz available: A 2010 executive order set a goal of making available 500 MHz of federal spectrum for private sector use by 2020. The makes that goal the law.
Speeding up 5G infrastructure: Next-generation gigabit wireless services, like 5G, will rely on smaller and more numerous antenna and infrastructure systems than current cellular technology. Federal agencies would have a new obligation to make decisions on applications and permit requests for placing wireless infrastructure on federal property in a timely and reasonable manner.
Spectrum assessments: The bill directs the Federal government to conduct assessments of spectrum in the 3 GHz band and in the millimeter wave frequencies to determine whether authorizing licensed or unlicensed wireless broadband services in those bands is feasible, and if so, which frequencies are best suited for such operations. Frequencies totaling more than 13 gigahertz of bandwidth will be studied, most of which are in the millimeter wave frequencies that will be critical for next-generation wireless networks, including 5G mobile networks.
Dig once: The Act facilitates adoption of safe and efficient “dig once” policies by states. Dig once is the idea that a single conduit through which all broadband wires can be run should be laid in the ground at the same time as other below-ground infrastructure work, like highway construction. Dig once can reduce costs for deployment of broadband infrastructure.
National broadband facilities asset database: The bill creates a central, online inventory of federal government property assets available or appropriate for private-sector deployment of broadband facilities. Such information includes the location of buildings and points of contact for siting applications. State and local governments would be permitted to voluntarily submit information about their assets to the inventory.
Reallocation incentives: The Commerce Department would be directed to issue a report within 18 months on additional legislative or regulatory proposals to incentivize Federal entities to relinquish or share their spectrum with non-federal spectrum users.
Immediate transfer of funds for agencies: The accelerates the relocation of Federal entities by allowing existing Spectrum Relocation Fund balances to be transferred to agencies for transition efforts immediately upon completion of an auction, rather than after the actual receipt by the Fund of auction proceeds. By immediately executing their transition plans, agencies would reduce their timelines to vacate, potentially increasing auction proceeds due to the value of accelerated access to the auctioned bands.

If Cable Won’t #UnlockTheBox, Why Would ISPs #ProtectNetNeutrality?

[Commentary] Big Cable’s #DitchTheBox proposal is one of the most recent examples of an industry’s inability to self-regulate in the absence of federal regulation, and many of the same companies offering pay-TV services are the same companies providing broadband internet. Big Cable’s past history of discrediting its own promises via its behavior epitomizes why it cannot be left to self-regulate. Big Cable said it would do one thing for consumers when faced with federal regulation, then did nothing when that threat evaporated. Replacing the Federal Communications Commission’s network neutrality rules with a voluntary system where broadband providers dictate their own rules (or lack of them) will likely result in the same scenario. In the end, we’d be exchanging strong, court-tested net neutrality rules with a series of ISP-designed loopholes that would serve as a catalyst for market abuse -- and more consumer ripoffs.

These 42 Disney apps are allegedly spying on your kids

The Walt Disney Co secretly collects personal information on some of their youngest customers and shares that data illegally with advertisers without parental consent, according to a federal lawsuit filed late last week in California. The class-action suit targets Disney and three other software companies — Upsight, Unity and Kochava — alleging that the mobile apps they built together violate the law by gathering insights about app users across the Internet, including those under the age of 13, in ways that facilitate “commercial exploitation.”

The plaintiffs argue that Disney and its partners violated COPPA, the Children’s Online Privacy Protection Act, a federal law designed to protect the privacy of children on the Web. The lawsuit, filed in U.S. District Court for the District of Northern California, seeks an injunction barring the companies from collecting and disclosing the data without parental consent, as well as punitive damages and legal fees. The lawsuit alleges that Disney allowed the software companies to embed trackers in apps such as “Disney Princess Palace Pets” and “Where’s My Water? 2.” Once installed, tracking software can then “exfiltrate that information off the smart device for advertising and other commercial purposes,” according to the suit. Disney should not be using those software development companies, said Jeffrey Chester, the executive director of the Center for Digital Democracy. “These are heavy-duty technologies, industrial-strength data and analytic companies whose role is to track and monetize individuals,” Chester said. “These should not be in little children’s apps.”

A Future Ruled by the "Botnet of Things"?

In October 2016, botnets (an interconnected group of electronic devices under the control of a botmaster, or botherder, who can then use the bot army to steal information or carry out scams on a massive scale) made headlines as the instrument behind a distributed denial of service (DDoS) attack against domain name system (DNS) provider Dyn that took dozens of websites, including Amazon, Netflix, Spotify, Twitter, and even the Swedish government, offline for hours. In response to a Request for Comment from the National Telecommunications and Information Administration (NTIA), OTI offered seven recommendations for addressing the threats posed by botnets:

1. Use bug bounty programs to reduce vulnerabilities in IoT products
2. Design devices such that they can be patched and updated
3. Ship items with unique, random credentials, and let users customize login information
4. Establish clear support windows and end-of-life procedures
5. Let users know which security features are available to them on a device—and which are not
6. Connect consciously
7. Support the products that implement best practices