BENTON'S COMMUNICATIONS-RELATED HEADLINES for THURSDAY, DECEMBER 12, 2013
Today’s daily double: a FCC oversight hearing (preview below) and an open FCC meeting + lots more on today’s agenda http://benton.org/calendar/2013-12-12/
GOVERNMENT & COMMUNICATIONS
NSA Phone Data on US Locations Incidental, Chief Says [links to web]
DOJ official: Freedom Act may not stop sweeping spying [links to web]
The Major Tech Companies Missing From the Surveillance Reform Letter - analysis
Public Knowledge Leads Petition for FCC to Protect Phone Customers’ Privacy - press release
Silicon Valley must keep the spies out of its honey trap - editorial [links to web]
White House vetted questioners for Biden’s Skype chat [links to web]
INTERNET/TELECOM
Disconnected: What the Phone System’s Digital Transition Will Mean for Consumers - research
AT&T’s gigabit service is $70 if you let it spy on your searches
New ITU broadband standard fast-tracks route to 1Gbit/s - press release [links to web]
FCC Proposes Nearly $44 Million in Fines Against Three Lifeline Service Providers - press release [links to web]
SPECTRUM/WIRELESS
The FCC’s wireless dilemma: More cash, or more competition?
Rep Dingell Warns FCC Against Limiting Spectrum Auction Bidders [links to web]
House Commerce Committee Approves Federal Spectrum Incentive Act - press release
Controversy over proposal to allow cellphone calls in flight tests new FCC Chairman Wheeler
Poll: Voters support ban on in-flight calls
JetBlue launches inflight Wi-Fi, promising a home broadband experience in the sky [links to web]
Verizon Open to Airwave Swap as T-Mobile Seeks More Capacity [links to web]
Centerbridge Reaches Tentative Deal for LightSquared
HEALTH
FCC Continues Push on mHealth Innovation [links to web]
GOVERNMENT PERFORMANCE
Sec Sebelius asks for investigation of HealthCare.gov
Chairman Issa Charges Sec Sebelius with Criminal Obstruction of HealthCare.gov Investigation [links to web]
FCC OVERSIGHT
Democrats Tee Up Host of Issues For FCC Oversight Hearing
FCC's Pai Supports Wheeler Decision To Move Auction Timetable
FCC's O'Rielly: Change to Quadrennial Rule Review Led To 'Near-Complete Paralysis
Rep Dingell Warns FCC Against Limiting Spectrum Auction Bidders [links to web]
FCC REFORM
House Commerce Committee Approves Bipartisan FCC Process Reform - press release
POLICYMAKERS
Nuala O’Connor Named President & CEO of the Center for Democracy & Technology - press release [links to web]
STORIES FROM ABROAD
Apple wins legal victory against Samsung in South Korea [links to web]
Japan Passes US as Top App Spender as Smartphone Use Rises [links to web]
Liberty Global in takeover talks with Dutch cable group Ziggo [links to web]
Britons lead the world in online shopping [links to web]
MORE ONLINE
Fox's National NFL Games Are the Biggest Draw on TV [links to web]
In the Spirit of the Valley, It’s Silicon This and Silicon That [links to web]
GOVERNMENT & COMMUNICATIONS
THE MAJOR TECH COMPANIES MISSING FROM THE SURVEILLANCE REFORM LETTER
[SOURCE: Time, AUTHOR: Courtney Subramanian]
Eight major American tech giants have teamed up for a government surveillance reform campaign, decrying the National Security Agency’s sweeping power and demanding the end of bulk data collection in a letter to President Barack Obama and lawmakers. But missing are a few Silicon Valley companies ignoring the possible damage done by leaks from NSA former contractor Edward Snowden. Most notably, online retail giant Amazon and marketplace eBay were not among the tech signatories. Hardware-driven companies like Oracle, Cisco Systems, Intel and HP were also absent. So where is the rest of Silicon Valley? Perhaps the public denouncement strategy is most beneficial to consumer-facing entities -- of which Amazon is part of -- that offer services to a broad swath of the public. Amazon’s cloud technology and web services make it an equally important player in the internet ecosystem and a tempting target for the NSA. Meanwhile, telecom companies like AT&T, Verizon and Level 3 remain sharply divided on the privacy values in Silicon Valley. Telecom companies have the least incentive to complain, enjoying multi-million dollar government contracts annually.
benton.org/node/169886 | Time
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PUBLIC KNOWLEDGE LEADS PETITION FOR FCC TO PROTECT PHONE CUSTOMERS’ PRIVACY
[SOURCE: Public Knowledge, AUTHOR: Laura Moy]
[Commentary] Do you think your phone service provider should be able to sell or share your personal data with anyone, for any reason? No? Neither do we. More importantly, neither do lawmakers, which is why in 1996 they passed a law that severely restricted what carriers can do with all this personal information. The law modified the Communications Act to add Section 222, “Privacy of customer information.” That’s why we filed a Petition for Declaratory Ruling at the Federal Communications Commission asking it to declare that the types of records AT&T is reportedly selling to the government are protected under Section 222. We believe that phone carriers are running afoul of the Communications Act when they share customers’ call logs with third parties, even if they first purge those call logs of certain personal details such as names and phone numbers. It's important that the FCC acknowledge that the Communications Act severely restricts how carriers may use or sell sensitive information known as customer proprietary network information (CPNI) and take steps to stop this from happening in the future. Joining us on the Petition are Benton Foundation, Center for Digital Democracy, Center for Media Justice, Chris Jay Hoofnagle, Common Cause, Consumer Action], Electronic Frontier Foundation, Electronic Privacy Information Center, Free Press, New America Foundation’s Open Technology Institute, and US PIRG.
benton.org/node/169872 | Public Knowledge | Public Knowledge | The Hill
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INTERNET/TELECOM
WHAT THE PHONE SYSTEM’S DIGITAL TRANSITION WILL MEAN FOR CONSUMERS
[SOURCE: The Greenlining Institute, AUTHOR: Paul Goodman, Carmelita Miller, Brian Kim]
The accelerating shift to digital telephone networks could end basic standards like affordable service and 9-1-1 access, The Greenlining Institute argues in a new report. Key findings include:
Major telephone providers plan to upgrade the technology they use in their telephone networks, switching to all-digital networks.
If the Federal Communications Commission doesn’t enforce basic standards as this transition proceeds, programs making sure phone service is available and affordable would be in danger. People in rural areas could lose service, and low-income consumers might not be able to get basic phone service they can afford.
Access to 9-1-1 emergency services would also be in danger, along with reverse 9-1-1, which provides notification in case of natural disaster or other emergency.
Despite these consequences for consumers, major carriers argue that the Federal Communications Commission should reduce its ability to enforce these basic standards. They advocate for the elimination of FCC and state oversight of all-digital networks, arguing that they should be treated as information services, not telecommunications services.
These and other potential impacts would affect all telephone users, but would be felt most severely by low-income consumers and communities of color.
benton.org/node/169913 | Greenlining Institute, The
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AT&T’S GIGABIT SERVICE IS $70 IF YOU LET IT SPY ON YOUR SEARCHES
[SOURCE: GigaOm, AUTHOR: Stacey Higginbotham]
AT&T said that it has started service in four Austin neighborhoods with an offer to bring its GigaPower fiber-to-the-home service for $70 a month -- but with a pretty big catch. If you want to pay the lower rate you must agree “to participate in AT&T Internet Preferences.” This means, “AT&T may use your Web browsing information, like the search terms you enter and the Web pages you visit, to provide you relevant offers and ads tailored to your interests.” The gigabit service will have a one terabyte data cap with overage fees of $10 for each additional 50GB, up to an additional $30 per month. The pricing with targeted advertising is in line with what Google charges in Kansas City, although Google does offer a free 5 Mbps service, and has confirmed that it does not inspect your content at the packet level as an ISP.
benton.org/node/169880 | GigaOm | telecompetitor | AT&T
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SPECTRUM/WIRELESS
THE FCC’S WIRELESS DILEMMA: MORE CASH, OR MORE COMPETITION?
[SOURCE: Washington Post, AUTHOR: Brian Fung]
If you've been following the debate about wireless spectrum, you know that Sprint and T-Mobile are at loggerheads with Verizon and AT&T over how much of the airwaves the big carriers will be allowed to buy in an upcoming auction. If Verizon and AT&T manage to snap up the bulk of it, regulators worry they'll threaten competition in the wireless industry. To avoid that fate, some have suggested imposing auction limits on the nation's two biggest carriers. In a recent Senate hearing, observers got a glimpse of how these restrictions might take shape. One option being considered is a set of caps that explicitly acknowledge Verizon and AT&T's current position at the top of the market. "No one has ever suggested that the two dominant incumbents be excluded from the upcoming incentive auction," wrote T-Mobile, Sprint and a handful of other companies in a letter to the Senate Commerce Committee. "But they already control nearly 80 percent of all available low-frequency spectrum." Rules that primarily restrict the largest carriers would free up more spectrum for other bidders, these companies argue. But experts disagree over the second-order effects -- whether it would raise more revenue that way in the long run, for example, or whether the smaller carriers would be able to use that spectrum as efficiently as the larger ones. Sorting through all this is the Federal Communications Commission, which has to juggle sometimes competing goals in designing the auction. Making sure the auction generates enough wealth to fund other expensive projects is one example. But the FCC also has to consider whether the rules of the sale ultimately benefit consumers.
benton.org/node/169897 | Washington Post
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COMMITTEE APPROVES BIPARTISAN FCC FEDERAL SPECTRUM INCENTIVE ACT
[SOURCE: House of Representatives Commerce Committee, AUTHOR: Press release]
The House of Representatives Commerce Committee approved, by unanimous voice vote, the Federal Spectrum Incentive Act (H.R. 3674), authored by Reps Brett Guthrie (R-KY) and Doris Matsui (D-CA). The bill would create a new path for government spectrum users to relinquish spectrum and receive a portion of net auction revenues instead of relocation costs. Reps Guthrie and Matsui are co-chairs of the subcommittee’s bipartisan Federal Spectrum Working Group, which continues to examine how the federal government can use the nation’s airwaves more efficiently.
benton.org/node/169892 | House of Representatives Commerce Committee | B&C
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IN-FLIGHT CELLPHONE CALLS
[SOURCE: Washington Post, AUTHOR: Cecilia Kang]
It didn’t take long for Tom Wheeler, the new chairman of the Federal Communications Commission, to face controversy. On Dec 12, the agency’s five-member commission is set to vote on whether to allow the public to comment on Wheeler’s idea to enable cellphone calls and Internet access on flights. That may sound like a minor procedural motion. But the proposal has generated so much backlash that some commissioners are wavering on whether to even take that step. Chairman Wheeler and another Democrat on the commission are expected to sign off on creating a public commenting period. But the other Democrat and the two Republican commissioners are hearing an outcry of protest from consumers and some lawmakers, and there is no guarantee that they would support opening the matter for review, FCC officials said. Chairman Wheeler said that he understands “the consternation caused by the thought of your onboard seatmate disturbing the flight making phone calls. I do not want the person in the seat next to me yapping at 35,000 feet any more than anyone else. But we are not the Federal Courtesy Commission.” He added: “Technology has produced a new network reality recognized by governments and airlines around the world. Our responsibility is to recognize that new reality’s impact on our old rules.” Some expect companies to jump on the proposal if the FCC ultimately approves the idea, said an aide to an FCC commissioner. “Once the FCC gets out of the way, you have to imagine airlines are immediately thinking of how to monetize it,” the aide said.
benton.org/node/169930 | Washington Post
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POLL: VOTERS SUPPORT BAN ON IN-FLIGHT CALLS
[SOURCE: The Hill, AUTHOR: Mario Trujillo]
A broad majority in a new poll believes cellphone calls should continue to be restricted on airplanes. A Quinnipiac poll found 59 percent of registered voters think calls should not be allowed, while 30 percent support the potential change to allow cell calls. Another 10 percent did not respond. A majority of every major demographic opposes calls on airlines. Young adults aged 18-29 are most open to the change, but even 52 percent of that group opposes the change. Some lawmakers on Capitol Hill also oppose the change and have introduced legislation to keep the ban in place. The Federal Communications Commission has said it would look into the change after it moved to allow passengers to use their phones for texts and emails during flights.
benton.org/node/169882 | Hill, The | Quinnipiac University
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CENTERBRIDGE DEAL FOR LIGHTSQUARED
[SOURCE: Wall Street Journal, AUTHOR: Mike Spector, Emily Glazer]
Private-equity firm Centerbridge Partners LP reached a tentative deal to buy LightSquared Inc. out of bankruptcy proceedings, said people familiar with the matter, potentially upstaging a bid by Dish Network to take over the wireless-telecommunications firm. Centerbridge proposed paying roughly $3.3 billion for the wireless venture, backed by financier Philip Falcone, and assuming about $1.7 billion in various liabilities, the people said. The deal would be executed under a bankruptcy-reorganization plan, some of the people said. Centerbridge's negotiations with LightSquared were fluid, and there remained a chance discussions could fall apart, some of the people said.
benton.org/node/169927 | Wall Street Journal | FT
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GOVERNMENT PERFORMANCE
SECRETARY SEBELIUS ASKS FOR INVESTIGATION OF HEALTHCARE.GOV
[SOURCE: Associated Press, AUTHOR: Ricardo Alonso-Zaldivar]
Recognizing that deeper problems may lurk behind the botched rollout of the health care website, Health and Human Services Secretary Kathleen Sebelius called for an investigation into management and contracting decisions. Sec Sebelius said that she is asking the department's inspector general to investigate the contracting process, management, performance and payment issues that may have contributed to the flawed launch of HealthCare.gov. In addition to the inspector general review, Sec Sebelius said she has ordered the hiring of a new "chief risk officer" at the Medicare agency, which also oversees the new programs created to expand health insurance coverage under Obama's law. That official will focus on making sure technology programs work as advertised. Secretary Sebelius also said she's ordered a retraining of her department on best practices for outside contracting.
benton.org/node/169876 | Associated Press | Kaiser Health News
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FCC OVERSIGHT
DEMOCRATS TEE UP HOST OF ISSUES FOR FCC OVERSIGHT HEARING
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
A Democratic staff memo for the House Communications Subcommittee Federal Communications Commission oversight hearing Dec. 12 focuses on four basic issues -- broadcast incentive auctions, government spectrum policy, universal service and the IP transition. In addition, the Democratic half of the subcommittee is looking for status reports on cell phone unlocking, in-flight mobile wireless, positive train control, the open Internet order, the IP transition, and the E-rate and Lifeline programs. The memo talks about several spectrum issues, including the three spectrum auctions mandated by Congress -- the H block auction, the first, scheduled for Jan. 22, 2014; the second, AWS-3 auction, which like the H block must be completed by February 2014; and the broadcast incentive auction, which is now scheduled for mid-2015.
benton.org/node/169903 | Broadcasting&Cable
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FCC'S PAI SUPPORTS WHEELER DECISION TO MOVE AUCTION TIMETABLE
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
Federal Communications Commissioner Ajit Pai is standing with FCC Chairman Tom Wheeler on the issue of moving the broadcast incentive auction date into 2015. But his biggest worry is that the FCC will discourage participation. That is according to a copy of Commissioner Pai's testimony for the Dec 12 House Communications Subcommittee FCC oversight hearing. "I am disappointed that there was not a clear path to holding a successful incentive auction by the end of 2014," he plans to tell the legislators. "I accordingly support Chairman Wheeler’s announcement setting the middle of 2015 as our new target and applaud him for issuing a schedule to meet that goal." And echoing both a National Association of Broadcasters talking point and a mantra that has begun to migrate to the FCC as well, Commissioner Pai said that it was "more important to get the auction done right than to get it done right now." Commissioner Pai plans to tell the subcommittee that there are five key auction principles:
Keep to the statute. "It is our job to implement this legislation, not to rewrite it to conform to our policy preferences," he says.
The band plan and repacking must "respect the laws of physics."
Be fair to both broadcasters and wireless companies since the FCC will need both for a successful auction.
Keep it simple, or as simple as possible given how inherently complicated it is.
Get 'er done. "Prolonged uncertainty is not good for broadcasters or wireless carriers.
benton.org/node/169911 | Broadcasting&Cable
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FCC'S O'RIELLY: CHANGE TO QUADRENNIAL RULE REVIEW LED TO 'NEAR-COMPLETE PARALYSIS
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
New Federal Communications Commissioner Michael O'Rielly plans to tell House Communications Subcommittee members that the FCC has fallen down on the media ownership review job and needs to get moving. That's according to his testimony for a Dec 12 oversight hearing. "The Commission has failed to comply with the obligations required by the Telecommunications Act of 1996, which were subsequently amended by Congress, to review and repeal or modify any of its media ownership rules that are no longer in the public interest as a result of competition," he says. Commissioner O'Rielly also outlined his keys to a successful incentive auction, which he also knows a little something about from his former job. "I helped shape and craft the text of the incentive auction statute, in partnership with the able Republican and Democratic staff from the House and Senate," he points out. As he sees it, the FCC needs to "entice enough broadcasters to participate, reasonably protect those broadcasters that choose otherwise, and convince wireless companies to bid on the spectrum made available."
benton.org/node/169909 | Broadcasting&Cable
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FCC REFORM
COMMITTEE APPROVES BIPARTISAN FCC PROCESS REFORM ACT
[SOURCE: House of Representatives Commerce Committee, AUTHOR: Press Release]
The House of Representatives Commerce Committee approved the Federal Communications Commission Process Reform Act (H.R. 3675) with an amendment in the nature of a substitute offered by Chairman Greg Walden (R-OR) and Subcommittee Ranking Member Anna Eshoo (D-CA). The amendment represents a bipartisan compromise that presents the FCC with a framework to bring additional transparency and predictability to its work. The bill also contains some statutory provisions including changes to the sunshine rules and a permanent exception to the Antideficiency Act for the federal Universal Service Fund. The bill sets maximum comment periods (with a carveout for good cause exemptions) for regulatory actions, including petitions for reconsideration and "establish[es] procedures for publishing the status of open rulemaking proceedings and proposed orders, decisions, reports, or actions on circulation for review by the Commissioners, including which Commissioners have not cast a vote on an order, decision, report, or action that has been on circulation for more than 60 days."
Among the more contentious issues it tees up in a mandatory FCC report are: "whether and how" to 1) allow commissioners, rather than just the chairman, to put issues on the agenda; 2) establish procedures for informing commissioners of their options for resolving a petition, complaint, application or rulemaking; 3) give commissioners adequate time to review items before they have to vote on them; 4) publish the text of agenda items before they are voted on in an open meeting so the public can read them; 5) deadlines for deciding of license applications; 6) to impose a license fee to help pay for any additional cost of meeting those deadlines; and 7) publish all orders, decisions and reports within 30 days of adoption.
benton.org/node/169894 | House of Representatives Commerce Committee | B&C | AdWeek
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