Kevin Taglang

[Commentary] Stop me if you’ve heard this before. News leaked that the Federal Communications Commission Chairman will propose new network neutrality rules to ensure a free and open Internet. People freaked out. FCC Chairman outlines his plan for net neutrality. People freak out more. FCC Chairman releases full net neutrality proposal. All Hell breaks loose. Although there’s generally been bipartisan agreement that broadband subscribers deserve consumer protection, there’s never been political consensus on how to ensure those protections. For anyone scoring at home, here's how we arrived at where we are this week. And here's what to expect in the weeks ahead.

In 2016, the Federal Communications Commission created a streamlined federal Lifeline Broadband Provider (LBP) designation process working within statutory limitations. The process allowed for broadband-only provision of service and flexibility in service areas to encourage new entrants into the Lifeline marketplace.

A federal designation process encourages more companies to enter the field because it streamlines the application/designation process and reduces administrative costs for Lifeline broadband providers. This was an innovative way to help close the digital divide. Since his designation as chairman of the Federal Communications Commission, the Benton Foundation has noted Ajit Pai’s dichotomous nature: he’s the folksy, down-to-earth populist, but also a Washington insider; he’s for a light regulatory touch and closing the digital divide – just not when it comes to Lifeline. On one hand, Chairman Pai has proposed streamlining local rules for improving broadband infrastructure deployment, but, in today’s announcement, he seems fine with creating more hoops for potential Lifeline broadband providers to jump through. Here’s what today’s announcement means: less competition in the Lifeline marketplace and less choice for Lifeline consumers. The FCC is short two commissioners, so it seems the chairman is trying to occupy two chairs or, at the least, talk out of both sides of his mouth. But if you’re really listening, the message is clear: Ajit Pai is anti-competition and anti-consumer.

The Senate Commerce Committee held a hearing on oversight of the Federal Communications Commission on Wednesday, March 8. A good time was had by all. The committee’s senators highlighted a wide range of issues during the 2+ hour hearing. Here we focus on the First Amendment, broadband deployment, network neutrality, privacy, and the future makeup of the FCC. In an op-ed published in The Hill, former-FCC Commissioner Michael Copps urged new FCC Chairman Ajit Pai to speak out in defense of the First Amendment and freedom of the press. As a FCC Commissioner, Pai said, “In my view, anyone who has the privilege of serving at the FCC—any preacher with a pulpit, if you will—has the duty to speak out whenever Americans’ First Amendment rights are at stake.” With President Donald Trump calling journalists “the enemy of the American people”, Copps and others are looking to the nation’s top communications regulator to declare the government has no place pressuring media organizations. In his opening remarks, Committee Ranking Member Bill Nelson (D-FL) said, “Ultimately, for this senator, the success or failure of the commission rests not on the fulfillment of special interest wish lists, but on how those who are least able to protect themselves have been treated and whether first amendment rights, including those of journalists, are vigorously protected.” During the hearing, Senators Tom Udall (D-NM) and Maggie Hassan (D-NH) pressed Chairman Pai to affirm his support of a free press, but Pai repeatedly refused to directly answer whether he agreed or disagreed with the President. Instead Pai said, “I don’t want to wade into the larger political debates, but I will simply reaffirm the quotes that you offered from last year and the year before.” Sen. Udall pressed Pai saying, “You refuse to answer that, about the media being the enemy of the American people.” Later Sen Hassan also returned to the issue saying, “I’d just like to give you another chance, because it seems to me that if you’re an outspoken defender of the free press, that should be a pretty easy question for you.” “No,” Pai answered. “I believe that every American enjoys the protections of the First Amendment offered by the Constitution.” Sen. Hassan said she wished she had gotten a different response.

[Commentary] In a democracy, the key role for citizens is to participate in public life. Voting, of course, is a key aspect of this participation, but, in a vital democracy, citizens’ participation is not limited to occasional trips to the voting booth: they are well-informed about public issues, watch carefully how their political leaders and representatives use their powers, and express their own opinions and interests. To be well-informed, many citizens must rely on journalists who can attend public events, question public officials, and report back to the general public. So important is this function in our democracy, citizens demanded protections for a free press and mass communication in the Bill of Rights. Since President Donald Trump’s Inauguration on January 20, 2017, many people are anxiously looking for clues as to how the Administration will interact with the press. Trump’s first week in office demonstrates that the relationship will be combative. Will the people be the losers in this fight?

With President Barack Obama’s second term ending on January 20, a number of Administration officials are delivering final addresses capsulizing the advances their departments or agencies led over the last eight years. Last week, Federal Communications Commission Chairman Tom Wheeler offered a two-part farewell highlighting the challenges we face dealing with technology-driven upheaval and cautioning policymakers not to reverse policies that ensure that broadband Internet access service is ubiquitous, competitive, affordable, open, and fair.

FCC Commissioner Mignon Clyburn said, “Whether you agreed with him or not, Tom Wheeler, my chairman, has made a bold impact on this agency and this ecosystem. Maybe we should not really be surprised: his years of experience with industry, his ability to make tough decisions, and his willingness to fiercely stand up for and protect his client. Fortunately for all of us, since late fall of 2013, the American consumer has been the direct beneficiary of his quest for competition, competition, competition and consumer protection. Personally, Tom Wheeler, you have helped to make me a better Commissioner. You have both challenged and assisted me to advance key priorities that will continue to make a difference in the lives of millions.”

”Making change in Washington is not for the faint of heart,” said FCC Commissioner Jessica Rosenworcel, “but the Federal Communications Commission accomplished much under Chairman Tom Wheeler’s watch. It’s been a privilege to work with the Chairman and I’d like to thank him for his service to the Commission and to the country. He brought a long history of experience in the communications sector to the job and proved himself to be a serious advocate for his positions and for consumers. His tenure at the agency will not soon be forgotten and I wish him the best in the future.”

“Like his beloved Ohio State Buckeyes, Chairman Wheeler brought passion and tenacity to the playing field each and every day. Despite our differences in many areas of communications policy, I commend him for his years of public service. It has been a privilege to serve alongside him, and I wish him well in his future endeavors,” said Commissioner Ajit Pai.

FCC Commissioner Mike O’Rielly said, “I truly thank Chairman Wheeler for his public service to our country. While we may not have always agreed on the substance or procedures of Commission work, Tom is passionate about his views and committed to solving communications problems, including our work together on Rate of Return reform. More importantly, I enjoyed the chance to get to know him on a personal level and chat on non-work matters, especially about our families. I wish Tom great success in any future endeavors he pursues.”

House Commerce Committee Chairman-elect Rep. Greg Walden (R-OR) said, “Few FCC Chairs have served during a more dynamic and controversial time. While Tom and I have not agreed on every issue, we’ve shared a passion for expanding access to broadband communications to underserved areas of America. I wish him every success in the future.”

“Few leaders at the FCC have known how better to expand horizons by promoting competition in the telecommunications marketplace than Tom Wheeler," said Sen. Ed Markey (D-MA), who pushed for set-top box reform, strong broadband privacy rules, and Title II reclassficiation, all of which Wheeler also supported. "From preparing students for the global economy through the modernized E-Rate program, to promoting net neutrality as the governing principle of the internet, to ensuring online privacy protections, Tom Wheeler has led the FCC and our nation through an important pro-consumer, pro-competition era. Tom Wheeler is a telecommunications titan, and I thank him for his tremendous service to the American people.”

“During my tenure in Congress, I have had the privilege to work with seven Chairmen and two Acting Chairs of the FCC. Tom Wheeler's leadership stands the tallest with an historic record of reshaping the telecommunications and technology landscape, making the U.S. a leader across all sectors," said Rep. Anna Eshoo (D-CA), ranking member of the House Communications Subcommittee. "He has strengthened the public safety network; he made networks open, fast and fair for all Americans; assured low income Americans that they, too, would share in our country's technological age; and advanced spectrum to keep our economy growing for decades to come."

Free Press President and CEO Craig Aaron said, “When Tom Wheeler was named to head the FCC, we voiced serious reservations about how a former industry lobbyist could do the job. But he proved us wrong. We haven’t agreed with him on every decision, but time and again Wheeler showed a willingness to stand up to industry pressure, listen to voices outside the Beltway and — perhaps most importantly — to change his mind. His legacy will be as one of the most effective chairs ever to hold the post — judged rightfully not by the number of unanimous votes but by actual accomplishments. Wheeler didn’t come into this job as a Net Neutrality champion, but he will be remembered first and foremost for his leadership on that crucial issue and for the standing ovations he earned on the day of the FCC’s historic vote.”

Senate Commerce Committee Chairman John Thune (R-SD) and Sen Roger Wicker (R-MS), chairman of the Communications Subcommittee, provided a cordial send-off, but mostly for leaving. “I wish Chairman Wheeler well in his future endeavors,” said Thune. “No one who worked with him can doubt his tenacity and passion for telecommunications policy. His public departure announcement follows longstanding precedent and helps the incoming administration transition the FCC to reflect the outcome of the November election.” “I commend Chairman Wheeler for his service and for following the tradition of stepping down in advance of a new administration,” added Wicker. “I look forward to working with President-elect Trump to appoint and confirm well-qualified nominees to the Commission who are committed to acting within the statutes and avoiding regulatory overreach.”

"Chairman Wheeler connected thousands of anchor institutions, fought to close the digital divide, and ushered the FCC into a future-ready era," said John Windhausen, director of the Schools, Health & Libraries Coalition. "Most notably, he oversaw the modernization of the E-rate program that promoted greater fiber investment to serve schools and libraries. Because of Chairman Wheeler’s efforts, students can now take part in digital learning, library patrons can take online courses, and the unemployed can apply for jobs.

“Chairman Wheeler has done more to promote competition and consumer protection than any Chairman in recent memory,” said Public Knowledge President and CEO Gene Kimmelman. “Consumers owe him an enormous debt of gratitude for his steadfast commitment to making our digital future fair and accessible for all. Though Americans are losing a great consumer protection champion, we will all benefit from his legacy and the policies he’s leaving behind.”

“When President Obama appointed Tom Wheeler Chairman, many people voiced open suspicion of a man who had led two major industry trade associations. But rather than be the lapdog of industry some feared (or hoped for), Tom Wheeler proved himself to be the most ferocious watchdog for consumers and competition in nearly two decades. In the days ahead, the public must be prepared to fight vigorously to keep the consumer protections he created,” said Harold Feld, Senior Vice President, Public Knowledge.

"Tom Wheeler built a truly historic record of achievement as Chairman of the FCC," said Mike Copps, special advisor to Common Cause and himself a former Democratic FCC chair. "At the pinnacle of his achievement is net neutrality. All those who understand the critical importance of this will best honor Tom now by joining together to preserve what his FCC did from the onslaughts of those who would reverse the rules, reverse the power of an open internet, and reverse history itself."

"Chairman Wheeler advanced key policies, like Net Neutrality, strengthening the Federal Communications Commission’s role as a watchdog for consumers and content creators, and ensuring that Latinos and other people of color have equal opportunity to be heard on the internet," said Alex Nogales, president of the National Hispanic Media Coalition.

Jonathan Schwantes, senior telecom policy counsel for Consumers Union, praised Wheeler’s tenure, saying “Chairman Wheeler put consumers first in developing groundbreaking new policies and took the Commission’s mission of serving the public’s interest to heart. From ensuring an open internet for all, to giving consumers more control over how their broadband provider uses their personal information and spearheading the push to tackle robocalls, the FCC took significant actions to protect consumers under his direction. Chairman Wheeler’s leadership will be sorely missed but he leaves behind an impressive legacy that will continue to benefit consumers for years to come.”

Sarah Morris, Director of Open Internet Policy for New America’s Open Technology Institute said, “Chairman Wheeler left an indelible mark on our country’s communications policy. Under his leadership, and with the support of Commissioners Clyburn and Rosenworcel, the FCC worked tirelessly to protect consumer interests. The FCC enacted historic rules to preserve an open internet and protect consumer privacy, thwarted the harmful Comcast merger with Time Warner Cable, and reformed the Commission’s important E-rate and Lifeline programs—all within a framework grounded in improving competition and innovation and promoting a vision of the internet as an open platform for all voices. We applaud Chairman Wheeler for these and numerous other accomplishments, and we are grateful for the thoughtfulness with which he approached his policymaking.”

On the day that FCC Chairman Tom Wheeler announced his resignation from the Commission, the Coalition for Local Internet Choice thanks him for his unwavering support for local Internet choice and for his efforts to remove barriers that prevent rural, urban, and tribal communities from enabling new broadband deployment. As FCC Chairman, Mr. Wheeler gave voice and support to the principle that all communities deserve access to modern broadband infrastructure, which is essential for 21st Century economic competitiveness, educational opportunity, democratic discourse, and quality of life. Mr. Wheeler was a hero in the FCC’s effort to enable localities in the states of North Carolina and Tennessee to serve their rural neighbors with state-of-the-art fiber networks. We honor him for his years of leadership on behalf of the principle that America is built on great local communities and that local broadband initiatives have an essential role to play in removing our country’s urban-rural broadband divide.

“Tom Wheeler did more to promote a productive and competitive wireless future for America than any previous chairman. He insisted that network neutrality should apply equally to mobile networks, he rejected mergers that would have reduced mobile market competition, and he opened huge new sources of wireless spectrum by pioneering the sharing of grossly underutilized frequency bands,” said Michael Calabrese, Director of New America’s Wireless Future Project.

"Strong willed and strong armed, this Chairman did it his way, and while LPTV suffered greatly in the process," said Mike Gravino, director of the LPTV Rights Coalition. "[W]hat can you say about someone who has given these last few years to public service? For our industry, it means maybe we'll finally get to meet one-on-one with the new Chairman, as this Chairman never granted us an audience of our own to discuss our issues, concerns, and needs."

USTelecom President & CEO Walter B. McCormick said, “We thank Chairman Wheeler for his service and express our gratitude for his commitment to expanding next-generation broadband access to the American people. Under his leadership, the FCC made historic reforms to Universal Service, focused on the importance of technology transitions, modernized the way the commission looks at the voice market by eliminating archaic regulations, and committed the agency to a public-private partnership approach to cybersecurity that will serve as a model for years to come. We wish him all the best in his future endeavors.”

NCTA CEO and former FCC chairman Michael Powell said, “Chairman Wheeler has presided over the Commission during a period of significant change and exciting innovation in the communications marketplace. Chairman Wheeler’s mantra from the beginning of his tenure has been ‘competition, competition, competition’ and he should be proud that American consumers are enjoying the benefits of today’s vibrant and highly competitive video and broadband sectors.”

The NTCA–The Rural Broadband Association said Wheeler “repeatedly demonstrated great resolve in taking action on some very difficult issues, and we appreciate the agency’s willingness under his leadership to engage with interested and affected stakeholders throughout these debates.”

“It would be disingenuous to suggest that we did not have significant differences with the direction the FCC took under Chairman Wheeler,” said Bob Quinn, AT&T Senior Executive Vice President of External and Legislative Affairs. “ However, Chairman Wheeler has been a respected leader in the video and wireless industries for over 30 years with many accomplishments. Following that illustrious career, and when most people would have hung up their spikes, he chose to enter public service where he was a dedicated and tireless advocate. We wish him and Carol happiness and health in the future.”

“Verizon thanks Chairman Wheeler for his dedication and hard work at the FCC. During his chairmanship we did not always agree on all issues, but we found that his door was always open and he sought to balance the concerns brought forth from all sides," said Verizon EVP Craig Silliman. "We’re also grateful for his leadership in helping unleash spectrum for 5G, a historic decision that will help preserve the U.S. global leadership position in wireless. We wish Mr. Wheeler well as he moves onto new endeavors.”

“We thank Chairman Tom Wheeler for his service and dedication to the American people," said INCOMPAS CEO Chip Pickering. "A fierce competitor, Wheeler always liked a good fight, especially when he had the American consumer in his corner.”

“From the outset of his time at the Commission, Chairman Wheeler has recognized the vital and expanding role mobile broadband networks play in the economic and social life of our communities and families," said Mobile Future chairman Jonathan Spalter. "I am grateful for his hard work to ensure broadband innovators and consumers alike have access to the spectrum resources we need to help sustain our mobile future. Chairman Wheeler has our thanks for his service to our country, and I wish him all the very best as he begins his next chapter.”

NAB President and CEO Gordon Smith said, “Chairman Wheeler has been a tenacious fighter on telecommunications issues during a period of remarkable change in the media landscape. We wish him well in whatever the future may hold.”
Statement (Commissioner Clyburn)

"ACA appreciates that Chairman Wheeler was an able steward of the nation's communications laws and was someone who always gave independent cable the opportunity to be heard and receive full and fair consideration," said ACA President Matt Polka. "The decision not to fully address the broken retransmission consent regime was a disappointment," he said. "But under Chairman Wheeler's direction, the FCC did take some key steps to curb TV stations' abuse of their regulatory advantages over smaller multichannel video programming distributors (MVPDs), including, but not limited to, the FCC's landmark decision in March, 2014 to ban retransmission consent collusion among non-commonly owned TV stations serving in the same local market. Moreover, in numerous Orders, in response to ACA's requests, the FCC provided small cable, broadband and phone providers with exemptions, waivers, extended compliance deadlines and granted other special considerations to ease their regulatory burdens."

Gary Shapiro, president of the Consumer Technology Association, pointed out that Wheeler would be making one of his final appearances at the 2017 CES show Jan. 5, and added his thanks to Democratic Commissioner Jessica Rosenworcel, who will also be exiting, in her case in early January. "We thank Chairman Wheeler and Commissioner Rosenworcel for their service, particularly their leadership in implementing the world's first TV broadcast spectrum voluntary incentive auction," he said. "As our world becomes more connected and devices become powerful hubs for our connected lives - from wearable technology to smart home devices to self-driving cars - we need additional licensed and unlicensed spectrum now more than ever. Chairman Wheeler and Commissioner Rosenworcel have been key drivers of freeing up the spectrum we need, and consumers will benefit from their legacy."

David Williams, president of the Taxpayers Protection Alliance, was pleased at the announcement. “Taxpayers and consumers can finally breathe a sigh of relief that Wheeler is stepping down," Williams said. "Wheeler took a benign federal agency and turned into one of the most intrusive and regulatory driven agencies in history. From promulgating nonsensical net neutrality regulations that would have stymied the growth of the internet or the ill-fated Set-Top Box plan to opposing free data for consumers, Wheeler was out of touch with consumers and reality.”

"Chairman Wheeler has been an incredible champion for America's children over the past years," said Common Sense Media CEO James Steyer. "He's led the way on major progress for kids in the classroom and at home through his extraordinary leadership on E-Rate 2.0 and the Lifeline program. He has also been a great advocate for all consumers and moderate and low income families. His legacy of work on behalf of kids stands for itself and it is critical for the next Administration to take a clear-eyed view at what chairman Wheeler accomplished for America's children and protect those important gains moving forward."

The Senate Committee on the Judiciary’s Subcommittee on Antitrust, Competition Policy & Consumer Rights held a hearing on AT&T’s proposed acquisition of Time Warner, a deal that would combine one of the nation’s largest phone and internet providers with a media entertainment titan that among other things, owns HBO, CNN, TBS, TNT and Warner Brothers studios. A fun time was had by all.

Committee Chairman Chuck Grassley (R-IA) pointed to concerns about the a negative impact on competition and innovation. “There’s concern that a combined AT&T-Time Warner will block competitor access to popular Time Warner content. There’s concern that a combined company will give preferential treatment – for example, favorable channel placement and zero-rating pricing – to Time Warner’s premium entertainment programming to the disadvantage of other content producers, in particular small independent producers. There’s concern about AT&T-Time Warner’s ability to leverage their assets to negotiate better licensing arrangements or raise the price of their content to the detriment of other distributors. There’s concern about the merged company’s ability to employ “bullying” tactics to dictate rates and terms to other networks. There’s concern that this acquisition will concentrate too much power into one conglomerate, resulting in higher prices and fewer programming options for consumers. There’s also concern about the merger’s implications for a free and diverse press.”

In the New York Times, Cecilia Kang started her coverage saying, “When AT&T and Time Warner announced their $85.4 billion deal in October, lawmakers greeted the acquisition frostily. Now their tone is changing.” Although lawmakers said the deal merited tough scrutiny, they also questioned whether traditional ways of evaluating mergers are growing outdated as Silicon Valley companies like Facebook and Google become massive media platforms that threaten the television industry. Sen David Perdue (R-GA) said the deal would combine companies that did not directly compete against one another. “The consumer is benefited from the aggregation,” he said. “That is called capitalism.”

At the hearing, AT&T and Time Warner executives pitched a message that catered to the new administration: a populist promise of lower prices and the potential to build more wireless infrastructure through the merger. While AT&T and Time Warner are powerhouses, they presented themselves as weaker rivals to the cable industry and Silicon Valley tech companies. AT&T Chief Executive Randall Stephenson said that cable companies dominated the broadband and television market, serving high-speed internet to eight of every 10 American homes that have broadband service. To experiment with new mobile video technologies, he said, AT&T needed to have in-house content to quickly try new streaming services at a lower cost. He added that AT&T had just introduced a streaming service with 100 channels for less than most cable television packages. “It is only the beginning of what we want to bring to the marketplace to threaten cable’s entrenched and still-dominant market position,” Stephenson said. He said AT&T would give CNN editorial independence if the merger were approved. Jeff Bewkes, the chief executive of Time Warner, said, “It is not enough to deliver great content.” The companies’ competitors have multiplied, he said. Stephenson said the merger “eliminates no competitor” and that the company aims to “get the most content to the most people at the lowest prices.”

Consumer groups rejected the characterization of AT&T and Time Warner as disadvantaged rivals, saying a combined company would create a powerhouse that all cable providers and networks would have to negotiate with. Streaming providers like Sling TV and Hulu would face a major new competitor, with AT&T’s access to 110 million wireless and satellite subscribers and premium television networks under the same roof, the groups said. “If a single company is able to control so many key inputs to online video, this new market could be snuffed out,” said Gene Kimmelman, president and chief executive of Public Knowledge, a nonprofit consumer group, at the hearing. He stressed that internet companies rely on the wireless and broadband networks controlled by huge telecommunications companies like AT&T.

Mark Cuban, an internet entrepreneur and owner of the NBA’s Dallas Mavericks, who also spoke at the hearing, said the truly dominant companies in media distribution these days were Facebook, Google, Apple and Amazon. “Facebook is without question in a dominant position, if not the dominant position, for content delivery,” he said.

Antitrust enforcers in the Trump administration will ultimately decide whether to approve the deal or block it as anticompetitive. However, members of Congress can both reflect and contribute to the public mood regarding the merger of such large, high-impact businesses. The members of the Subcommittee extracted a pledge from the AT&T and Time Warner executives to treat their competitors fairly on content and distribution if their pending $85 billion merger is approved. AT&T’s Stephenson promised that the combined company would not unfairly favor Time Warner content on its distribution platforms, like DirecTV, by blocking or overcharging companies that compete with Time Warner from offering content. In turn, Time Warner Chief Executive Jeffrey Bewkes promised that his company would not inflate the price of Time Warner content for distributors that compete with AT&T.

“The reason we have these hearings is to get stuff on the record, right?” said Sen. Amy Klobuchar (D-MN), the subcommittee’s ranking member. “So they said on the record they wouldn’t discriminate. They said on the record that Time Warner wouldn’t discriminate, either, where the content went. So if that proves to be false, then you have it under oath that they said this, and then you can use that for further action.”

[Commentary] On November 21, 2016, President-elect Doonald Trump named Mark Jamison and Jeffrey Eisenach to his “agency landing team” for the Federal Communications Commission. Jamison is a Visiting Fellow with the American Enterprise Institute (AEI). He is also the Gunter Professor of the Public Utility Research Center (PURC) at the University of Florida and serves as its director of telecommunications studies. [Eisenach is a Visiting Scholar at AEI and Director of its Center for Internet, Communications, and Technology Policy.] Since, as a candidate, Donald Trump did not offer a telecommunications agenda, many are trying to read the tea leaves to understand how these appointments will impact how the FCC will operate over the next four years. As a professor and visiting fellow, Jamison is a prolific writer. We've been reading through his works looking for hints of what Trump Administration priorities may be.

The House Commerce Committee’s Subcommittee on Communications and Technology held a Federal Communications Commission oversight hearing on July 12 – just for fun. The staff for the subcommittee’s majority framed the hearing as an examination of both the FCC’s “policy decisions and the process by which it reaches them under Chairman [Tom] Wheeler’s leadership.” The staff teed up four issues in particular: privacy and broadband providers, set-top TV boxes, media ownership rules, and management of the Lifeline program. All five FCC commissioners testified.

In his written testimony, FCC Chairman Wheeler updated the subcommittee on the FCC’s progress regarding Open Internet rules recently upheld in court, the world’s first incentive auction aimed at convincing television broadcasters to relinquish spectrum licenses, efforts to accelerate the development and deployment of 5G wireless technology, a proposal to encourage competition in the Business Data Services (also known at Special Access) marketplace, the FCC’s Lifeline Modernization order, a proceeding on how to ensure consumers have the tools they need to make informed choices about how and whether their data is used and shared by their broadband providers, set-top boxes, and the need to improve the 911 system.

Press reports of the hearing focus on the sparring over the Lifeline program which makes telephone service more affordable for low-income households. FCC Commissioner Ajit Pai has expressed concerns that households may be receiving extra or unneeded subsidies, which are against the program's rules. Rep. Anna Eshoo (D-CA), the Ranking Member of the subcommittee, ripped into Commissioner Pai at the hearing, pressing him on whether he had actually found evidence of fraud and if his investigation into the program had considered that some addresses include more than one household, for example homeless shelters or veterans' homes, where residents might be entitled to multiple subsidies. “Because they exist in my congressional district, in everyone’s congressional district,” she said. “And if you’re using those multi-household addresses to allege that there’s fraud, then, you know what, you’ve got to be really careful with this.” Chairman Wheeler came armed with stats showing that more than two million people getting lifeline subsidies were in those multiple-dwelling units.

“I agree completely congresswoman,” Commissioner Pai responded. “That’s why I said we don’t know, it’s potentially fraudulent and we need to investigate given the magnitude of that number.” “So you don’t know, you’re just saying it might be?” Rep Eshoo shot back. She then repeatedly asked Pai whether he had found concrete evidence of fraud in the Lifeline program. “No, just answer me, yes for no,” she said, eventually. “Have you uncovered any fraud so far?” “To date, I have not reached that conclusion,” Pai replied.

Rep Frank Pallone (D-NJ) released a report concluding that recent Republican allegations of $500 million of waste, fraud, and abuse in the Lifeline program are based on faulty assumptions and bad data. The research found that the Republican claims relied solely on a faulty assumption that all Lifeline beneficiaries living in multi-household addresses — including veteran group homes, nursing homes, and homeless shelters — received their phones due to fraud. The investigation has uncovered no evidence to support this assumption, and found that 43 percent of the multiple-household filings were submitted out of an abundance of caution for consumers whose information had already been verified.

Eleven public interest advocates (including the Benton Foundation) filed a letter on July 7, 2016, to express concern with a draft order that will streamline the framework for Federal Communications Commission evaluation of requests to discontinue legacy voice service. The groups urged the FCC to include affordability in the criteria to evaluate a discontinuance application and require consumer education in languages other than English and in a manner that can be used by people with disabilities. The FCC must ensure that discontinuance of service does not result in the loss of Lifeline discounts to low-income households, including both voice and the recently adopted Broadband Internet Access Service Lifeline program. The availability of Lifeline discounts should be included in the adequate replacement criteria. The FCC must ensure that discontinuance of service does not leave any consumers without access to the Internet at a reasonably comparable price. The ability to connect to the Internet at a reasonably comparable price should be included in the adequate replacement criteria.

Public Knowledge and the Communication Workers of America met with Commissioner O’Reilly’s Legal Advisor on July 5, 2016, to express support for FCC action to clarify the process and criteria the FCC will use to evaluate a streamlined discontinuance request from a legacy voice TDM provider. They said, however, the FCC should require carriers to certify there is a broadband provider in the service area prior to discontinuing service and ensure that there is an adequate public comment period for a 214(a) discontinuance. They also met with Legal Advisors to Commissioners Clyburn and Rosenworcel to discuss the same issues.