June 30, 2015 (Commissioner Pai has a Rural Broadband Plan)

BENTON'S COMMUNICATIONS-RELATED HEADLINES for TUESDAY, JUNE 30, 2015

Following the Lifeline debate? See https://www.benton.org/initiatives/lifeline


INTERNET/BROADBAND
   FCC’s Pai Announces His Plan to Support Broadband Deployment in Rural America
   It’s time to make broadband priority - Sen Deb Fischer (R-NE), FCC Commissioner Ajit Pai op-ed
   Remarks Of FCC’s Gigi Sohn At Westminster's Fiber Launch Party - speech
   10 Gigabit Broadband Gains Further Momentum with Calix News [links to web]

WIRELESS/SPECTRUM
   EOBC Offers FCC 1 Percent Solution
   Competition and choice in wireless broadband - Henry Waxman op-ed
   The future of mobile data pits cellphone carriers against cable giants
   SF Giants claim another title — this time for Wi-Fi connectivity [links to web]

CONTENT
   Can Apple save the music industry again?
   Music piracy is down but still very much in play [links to web]
   More than 26 million people have changed their Facebook picture to a rainbow flag. Here’s why that matters. [links to web]

TELEVISION
   NBCUniversal cuts ties with Trump
   NBC under pressure to cut Trump ties [links to web]
   Study: TV Everywhere’s Getting Somewhere [links to web]
   Why Linear TV Is Here to Stay and 4 Other Takeaways from ‘TV of Tomorrow’ - op-ed [links to web]

ELECTIONS AND MEDIA
   Coding for Liberty: On the Ground at Rand Paul’s Presidential Hackathon [links to web]

PATENTS
   Supreme Court declines Google appeal in copyright case [links to web]

TELECOM
   PayPal walks back its controversial robocalling policy [links to web]
   App Developer Settles FTC and New Jersey Charges It Hijacked Consumers’ Phones to Mine Cryptocurrency [links to web]

PRIVACY
   Big Data vs. Best Data: The Future of You in a Networked World - op-ed
   Facebook can recognize you even if your face isn’t visible [links to web]
   Cash for personal data does not add up, says Ipsos boss [links to web]

SECURITY
   China crosses President Obama’s cyber ‘red line’ - Marc Thiessen analysis [links to web]

POLICYMAKERS
   Famed Security Researcher Mudge Leaves Google for White House Gig [links to web]
   Spotlight on NTIA: Laura Breeden, Director of External Affairs for BroadbandUSA [links to web]

COMPANY NEWS
   AOL in Deal With Microsoft to Take Over Display Ad Business [links to web]
   Time Warner Executives Set To Reap Big Financial Rewards [links to web]
   Gannett Completes Split Of Print, Broadcasting Divisions [links to web]
   Melissa Block Takes On Expanded Role At NPR News - press release [links to web]

STORIES FROM ABROAD
   EU network neutrality to allow fast streaming
   Iraqi government shut down the Internet to...prevent exam cheating? [links to web]
   Google has until August 17 to reply to EU antitrust charges [links to web]

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INTERNET/BROADBAND

FCC'S PAI ANNOUNCES HIS PLAN TO SUPPORT BROADBAND DEPLOYMENT IN RURAL AMERICA
[SOURCE: Federal Communications Commission, AUTHOR: FCC Commissioner Ajit Pai]
Those living in rural America need high-speed broadband in order to compete in the digital economy. Today, I'm announcing my plan to help deliver the online opportunities they deserve. I am putting on the table a concrete and specific plan for giving rate-of-return carriers a chance to participate in the Connect America Fund if they want to do so. First, I have concluded after careful study that targeted changes to existing universal service rules can solve the stand-alone broadband problem. Second, I believe that we need to open a path so that rate-of-return carriers that want to participate in the Connect America Fund can do so before the end of 2015. To be sure, taking these steps will not complete our work on the Universal Service Fund. But we should not let division on other high-cost reforms delay the adoption of a commonsense, broadly appealing solution to a specific problem. Let's get rural America connected once and for all.
benton.org/headlines/fccs-pai-announces-his-plan-support-broadband-deployment-rural-america | Federal Communications Commission
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IT'S TIME TO MAKE BROADBAND PRIORITY
[SOURCE: Omaha World-Herald, AUTHOR: Sen Deb Fischer (R-NE), FCC Commissioner Ajit Pai]
[Commentary] The Internet is the greatest free-market innovation in history. And if we want it to thrive, our government needs to refocus its efforts on what really benefits consumers — namely, more broadband investment, deployment and competition. We need policies that will make it easier to deploy high-speed broadband. The building blocks of an Internet network (things like laying optical fiber in the ground) are high-cost projects, often requiring extensive planning and years of waiting for government approval. Long waits can deter some companies from acting at all, especially in less populous states. We need to streamline the permitting process. Next, the federal government needs to modernize its rules to unleash high-tech connectivity. One example is the Universal Service Fund, an $8.7 billion fund that is supposed to support companies that promise to deploy broadband in rural America. But the current program is still rooted in the telephone era, and gives companies funding for broadband based only on the telephone lines they serve. This effectively penalizes any rural company that offers customers broadband as a stand-alone service. We need to fix the Universal Service Fund and give rural consumers the same options for broadband as every other American. Finally, we need policies to encourage private investment. After all, broadband providers invested $75 billion in their networks last year, nearly $66 billion more than the federal government. That means we need a framework that reduces regulatory uncertainty so that private companies can invest with confidence.
benton.org/headlines/its-time-make-broadband-priority | Omaha World-Herald
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REMARKS OF FCC'S GIGI SOHN AT WESTMINSTER'S FIBER LAUNCH PARTY
[SOURCE: Federal Communications Commission, AUTHOR: Gigi Sohn]
What is happening today is a great example of local communities and their leaders taking control of their broadband future. Westminster (PA) has chosen to engage in a private-public partnership with Ting, which will be providing the city with what they call "crazy fast fiber Internet." It's hard to believe that what you have built is the first community constructed fiber network in the Mid-Atlantic region...Please be assured that the Federal Communications Commission is an ally to Westminster and all communities looking to offer their citizens more competitive choices for true high-speed Internet. We are committed to cutting through bureaucratic red tape to accelerate and lower the costs of broadband deployment. For example, our recent Open Internet Order eased access to utility poles and other conduits necessary to broadband deployment. We also approved petitions from the leaders of Chattanooga (TN) and Wilson (NC) to pre-empt the restrictive state laws hampering investment and deployment in their areas. I want to congratulate you again for being a leader in community broadband and a model for other communities to emulate.
benton.org/headlines/remarks-fccs-gigi-sohn-westminsters-fiber-launch-party | Federal Communications Commission
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WIRELESS/SPECTRUM

EOBC OFFERS FCC 1 PERCENT SOLUTION
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
Expanding Opportunities for Broadcasters Coalition has told the Federal Communications Commission that its plan to drop its offering prices to stations in the reverse broadcast incentive auction by 5 percent in each of the initial rounds, is a bad idea any way you look at it, and one that could "destroy" broadcasters ability to get important information to help them decide what to do. There are many options, including bidding, dropping out, and changing their election -- say from selling out to sharing or moving to a lower channel assignment. EOBC has suggested 1 percent drops is better for all concerned, and made that point in a filing to the FCC on June 29 in which it said a 5 percent drop would result in "inefficient outcomes, compromise the ability of bidders to make rational decisions about participation, and likely hinder the ability of broadcasters to elect the option to move to VHF." EOBC says that, by contrast, its proposal to drop prices by only 1 percent per round would "simplify the bidding process, increase opportunities for outcome discovery, result in more exact exit values, and allow bidders to prepare in advance, with full knowledge of the prices that will be offered in each round.” EOBC concedes that the lesser decrements (the opposite of "increments") would extend the auction "by a couple of weeks," but said that seemed a small price to pay for simplicity and efficiency of the actual auction process.
benton.org/headlines/eobc-offers-fcc-1-percent-solution | Broadcasting&Cable
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COMPETITION AND CHOICE IN WIRELESS BROADBAND
[SOURCE: The Hill, AUTHOR: Henry Waxman]
[Commentary] Unfortunately, the wireless industry today is anything but competitive. Two carriers, AT&T and Verizon, have a de facto duopoly with two-thirds of the market. With it, they have the financial and political power to drive the other carriers completely out of the market. If this happens, customers -- individuals and businesses alike -- would face sharply higher prices, reduced service and less innovation. To keep the wireless broadband playing field from becoming hopelessly tilted toward the “Big Two,” Congress authorized the Federal Communications Commission to promote competition by preventing the excessive concentration of spectrum in an upcoming auction of low-band spectrum licenses. In keeping with congressional direction, the FCC adopted rules that ensure any bidder that holds less than one-third of the available low-band spectrum can buy spectrum in the auction. Achieving the goal of competitive wireless broadband will depend upon how the FCC uses its regulatory power to structure the upcoming auction of low-band wireless spectrum. We need to prevent the loss of innovation, investment and deployment that even more market power would create. That’s why the FCC, under the able leadership of Chairman Tom Wheeler, should increase the spectrum reserve to at least 40 MHz. If the FCC follows suit and increases the spectrum reserve for competitors to at least 40 MHz, we’ll have better service, faster connection times, lower prices, more options and new innovation. Isn’t that what we all want as consumers? And isn’t that what our economy needs?
[Waxman currently serves as Chairman at Waxman Strategies, a public affairs and strategic communications firm]
benton.org/headlines/competition-and-choice-wireless-broadband | Hill, The
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LTE-U
[SOURCE: Washington Post, AUTHOR: Brian Fung]
Cellular data is one of the great innovations of the 21st century. Now it's about to take its next big leap, one its supporters say will improve service on carriers such as Verizon and T-Mobile. Its critics, however, say it could undermine WiFi, a free, time-tested technology that handles roughly half of the Internet's mobile traffic today. It's called LTE-U, and it's being developed by Verizon, the chipmaker Qualcomm and a number of other telecom companies. The innovation represents the next evolution in mobile data — and a looming flashpoint for two gigantic industries. If you use any of the four major national cell carriers, you're probably familiar with 4G LTE, the current cutting edge of mobile data technology. Under ideal conditions, it provides download speeds that rival what you can get on a wired connection — fast enough to download a song in less than a minute. LTE-U is virtually identical to LTE, but with one key difference: It runs on the same frequencies that WiFi does. Unlike regular LTE, which piggybacks on airwaves owned exclusively by your carrier, LTE-U travels on public airwaves that are free to anyone. Under LTE-U, your device will likely report being on "LTE" just as it always has. But its introduction reflects an unprecedented move by wireless carriers onto open airwaves — known in the industry as unlicensed spectrum — and that's going to have important repercussions.
benton.org/headlines/future-mobile-data-pits-cellphone-carriers-against-cable-giants | Washington Post
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CONTENT

CAN APPLE SAVE THE MUSIC INDUSTRY AGAIN?
[SOURCE: Washington Post, AUTHOR: Cecilia Kang]
More than a decade ago, the music industry was in crisis. Songs were being passed around the Internet illegally, and CD sales were in decline. So major labels and musicians embraced Apple, which convinced consumers to open their wallets again with iTunes. Now again in turmoil, the music industry is looking once more to Apple, which launches its new $10-a-month streaming service June 30. The challenge this time: Find a solution for the industry as it struggles with free streaming sites threatening the core economics of its business. With its paid service, Apple will go against the grain of the tech industry, which is seeing the quick growth of free models for music. Google, which has 1 billion music listeners through YouTube, introduced its own free streaming service the week of June 22. Pandora, the early streaming specialist, has 85 million listeners, and Spotify has doubled the number of its nonpaying users to 75 million in the in 2015. In months of negotiations with music labels and artists big and small, Apple committed a vast marketing budget for glitzy TV ads and direct marketing to the hundreds of millions of e-mail accounts it holds. Apparently, it promised slightly better royalties than Spotify and other streaming partners and perks for consumers that aren’t available on other streaming services. But most important, Apple promised to strictly enforce its policy that users must pay after a free, three-month trial. In this way, Apple will differ from Spotify and Pandora, which charge for premium tiers of service but allow users to stay on their free ad-supported programs. The free tiers don’t offer the same perks as the paid tiers, but for the vast majority of its users those benefits haven’t mattered enough to get them to upgrade for a monthly fee.
benton.org/headlines/can-apple-save-music-industry-again | Washington Post
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TELEVISION

NBCUNIVERSAL CUTS TIES WITH TRUMP
[SOURCE: Politico, AUTHOR: Dylan Byers]
Amid mounting public pressure, NBCUniversal announced that it will cut business ties with Donald Trump due to "recent derogatory statements" the Republican presidential hopeful made regarding Mexican immigrants. "At NBC, respect and dignity for all people are cornerstones of our values," the network's statement reads. "Due to the recent derogatory statements by Donald Trump regarding immigrants, NBCUniversal is ending its business relationship with Mr. Trump." "To that end, the annual Miss USA and Miss Universe Pageants, which are part of a joint venture between NBC and Trump, will no longer air on NBC," the statement continues. "In addition, as Mr. Trump has already indicated, he will not be participating in 'The Apprentice' on NBC. NBC's announcement comes four days after Univision announced it would end its business relationship with the Miss Universe Organization based on what it described as Trump's "insulting remarks about Mexican immigrants." Trump subsequently promised to sue the Spanish-language broadcaster for breach of contract and defamation, and banned Univision employees from his Miami Doral golf resort. Trump's office said, "If NBC is so weak and so foolish to not understand the serious illegal immigration problem in the United States, coupled with the horrendous and unfair trade deals we are making with Mexico, then their contract violating closure of Miss Universe/Miss USA will be determined in court. Furthermore, they will stand behind lying Brian Williams, but won’t stand behind people that tell it like it is, as unpleasant as that may be.”
benton.org/headlines/nbcuniversal-cuts-ties-trump | Politico | Vox | The Wrap
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PRIVACY

BIG DATA VS BEST DATA: THE FUTURE OF YOU IN A NETWORKED WORLD
[SOURCE: Revere Digital, AUTHOR: Brad Brooks]
[Commentary] With the advent of wearables, the connected home and other types of networked devices, we’ll all be asked to give the okay to allow certain actions to happen automatically as we offload some of the more mundane tasks in our lives to be automated. Many of those interactions are going to require some level of transaction, some level of initial decision or approval, for that automation to happen. We’ll need a system where we can readily ensure trust in our identity, where we know our identity is being protected, and that we are approving these myriad of transactions that are happening in the background, turning cloud data into action. Let’s consider how we can begin to construct a digital identity that is as identifiable as a universal passport. For individuals, a big part of this will be establishing a unique digital footprint that develops and matures over time as we build a personal history of data, including permissions and approvals. For businesses, it will be imperative to empower customers along the path to a secure identity in this new world of hyperconnectivity and automation. That means companies of every size, industry and geography must start bridging the gap now between physical and digital worlds. Much of that can start with the transaction data that gets captured every day -- when you ask customers for a signature or other type of approval. It’s not necessarily the biggest data, but it is crucial data for capturing a host of “metadata” that will feed into these new unique digital portraits -- and it’s among the first steps of turning your cloud data into cloud action.
[Brad Brooks is CMO of DocuSign]
benton.org/headlines/big-data-vs-best-data-future-you-networked-world | Revere Digital
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STORIES FROM ABROAD

EU DTA ROAMING AND NET NEUTRALITY
[SOURCE: Financial Times, AUTHOR: Duncan Robinson]
European lawmakers have agreed to a final proposal to scrap mobile phone roaming charges and adopt new rules on online network neutrality. Roaming fees – the extra charges made for using a mobile phone abroad – will come to an end in June 2017, although customers will still be subject to “fair use” rules when making calls or using data in other countries. As an interim measure from 2016, roaming fees will be capped at five cents per megabyte for mobile data, five cents per minute for calls and two cents per SMS message. Lawmakers also agreed rules on net neutrality – the principle that internet traffic should be treated equally. However, unlike the stricter rules imposed in the US, the EU measures will allow telecoms groups to offer faster connections for “specialised services” including the streaming live TV – provided they do not hinder other users. Telecoms groups are expected to welcome the concession.
benton.org/headlines/eu-network-neutrality-allow-fast-streaming | Financial Times
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