March 26, 2015 ("You're playing God with the Internet."

NET NEUTRALITY

NET NEUTRALITY HEARING EXAMINES A FALSE CHOICE ON ANTITRUST
[SOURCE: The Hill, AUTHOR: Joshua Stager]
[Commentary] Opponents of network neutrality, still stinging from their recent defeat at the Federal Communications Commission, have taken their fight to Congress in a two-week marathon of hearings that concluded in the House Judiciary Committee. The March 25 hearing, provocatively titled "Wrecking the Internet to Save It?", examined whether antitrust law can address net neutrality better than the FCC's recently approved rules. This argument, a favorite of House Judiciary Chairman Bob Goodlatte (R-VA), presents a false choice. In truth, Americans need both antitrust enforcement and the regulatory process to protect the Open Internet. Policymakers should reject this false choice and embrace the benefits of both approaches. Antitrust has greatly benefited consumers and the economy, but it is not a panacea. The best way to preserve net neutrality combines strong regulatory safeguards with rigorous antitrust enforcement in the broadband market. The FCC embraced this approach last month. Congress should not stand in its way.
[Joshua Stager is policy counsel for the New America's Open Technology Institute]
benton.org/headlines/net-neutrality-hearing-examines-false-choice-antitrust | Hill, The | Chairman Wheeler | Commissioner Pai
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PLAYING GOD WITH THE INTERNET
[SOURCE: Washington Post, AUTHOR: Brian Fung]
Rep Louie Gohmert (R-TX), an outspoken critic of the Federal Communications Commission's rules that prevent Internet providers from blocking Web sites or speeding some of them up over others, exploded during a House Judiciary Committee hearing. His voice rising to a shout, Rep Gohmert threw a stream of accusations at FCC Chairman Tom Wheeler, complaining that the FCC had cut off Internet providers' ability to find new ways of making money. "Before the FCC came in, everybody could explore new business models," Rep Gohmert said. "You're playing God with the Internet … That's not your job. Congress wasn't asking you to take over the Internet," he added, referring to the FCC's congressional charter. Chairman Wheeler didn't respond directly to Rep Gohmert. But during the hearing, he defended the FCC's new net neutrality rules. He also noted that some Republicans agree that there is a need to put some limits on Internet providers, pointing to a bill backed by Reps. Greg Walden (R-OR) and Fred Upton (R-MI), as well as Sen. John Thune (R-SD).
benton.org/headlines/rep-gohmert-fcc-youre-playing-god-internet | Washington Post
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THE FCC: COP ON THE BEAT TO FTC'S FIREHOSE
[SOURCE: The Hill, AUTHOR: Gene Kimmelman, Allen Grunes]
[Commentary] On March 25, Congress will once again take aim at the Federal Communications Commission’s ability to do its job as the expert agency in the communications sector. At issue this time is whether another agency with three initials -- the Federal Trade Commission -- should take over authority from the FCC. Behind the debate is the question of whether antitrust law is sufficient on its own to prevent big Internet providers from taking advantage of consumers. We think the answer is “no.” It is not an exaggeration to say that the ongoing success of modern communications has rested on this dual FCC/antitrust agency oversight of the industry. Antitrust is no doubt important to ensure healthy marketplaces in many sectors of our economy. But the FCC is specifically charged with the central goals of communications policy: achieving universal service, protecting consumers, promoting competition and innovation, ensuring a communications platform that supports a diversity of viewpoints. Only combined market oversight will ensure digital communications platforms capable of promoting social and economic justice necessary to support a robust democracy.
[Gene Kimmelman is CEO of Public Knowledge. Allen Grunes is an antitrust attorney]
benton.org/headlines/fcc-cop-beat-ftcs-firehose | Hill, The
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PUBLIC KNOWLEDGE URGES HOUSE JUDICIARY TO PRESERVE FCC AUTHORITY OVER BROADBAND
[SOURCE: Public Knowledge, AUTHOR: Kate Forscey]
Some members of the [House Judiciary] committee have asked whether antitrust law is sufficient on its own to address broadband policy in the digital age. As on all previous occasions anyone has seriously looked at this question, the answer, once again, is ‘no.’ Furthermore, the timing and framing of this hearing, ‘Wrecking the Internet to Save It,’ following a similar hearing in February, suggests that no one on the Committee seriously wants to debate the question. Rather, this appears to be yet another effort spurred by cable and telephone lobbyists to punish the Federal Communications Commission for doing its job. The FCC and Federal Trade Commission occupy complementary roles in the quest to promote competition and consumer protection. Antitrust is narrowly tailored to provide redress to very specific harms, and only after the fact. In keeping with the importance of the Open Internet in our daily lives, however, the FCC has a broader mandate to craft policies that not only prevent harms from occurring in the first place, but also actively promote network deployment, competition, consumer protection, and innovation. Stripping the FCC of its authority will only leave consumers vulnerable and encourage cable and telephone companies to continue to push the envelope on abusive practices. We urge members to recognize the important roles both agencies play in protecting consumers and fostering competition and innovation on the Internet.
benton.org/headlines/public-knowledge-urges-house-judiciary-preserve-fcc-authority-over-broadband | Public Knowledge
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SOME NET NEUTRALITY ADVOCATES ARE WORRIED ABOUT THIS SMALL LOOPHOLE IN THE FCC'S RULES
[SOURCE: Washington Post, AUTHOR: Brian Fung]
Even as federal officials prepare to defend their network neutrality regulation in court, attention is shifting to a part of the new Federal Communications Commission rules that could give Internet providers a loophole, according to some analysts. There is concern that Internet providers could mislabel some types of Internet content in order to avoid the strongest parts of the rules. The issue in question deals with what are known as "specialized services" -- a loosely defined category of Web applications that covers things like VoIP phone service, smart thermostats and real-time health monitoring. These services have been traditionally less regulated, and that won't change under the new net neutrality rules. But some advocates fear that because the specialized services label comes with few restrictions it gives Internet providers the ability to bypass the FCC's rules that prevent Internet throttling, blocking and so-called fast lanes. Ultimately, it is up to the FCC to call foul on broadband companies that try to circumvent the rules. But it isn't clear how the agency would do that in the case of specialized services. Although the FCC insists it will keep a close eye on the companies to be sure they're not abusing the loophole, senior officials have not laid out what, specifically, might trigger an investigation. And that has some net neutrality advocates worried.
benton.org/headlines/some-network-neutrality-advocates-are-worried-about-small-loophole-fccs-rules | Washington Post
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SETTING THE RECORD STRAIGHT ON A NET NEUTRALITY FACT CHECK
[SOURCE: Washington Post, AUTHOR: Michelle Ye Hee Lee]
In January, the Washington Post’s Fact Checker was critical of claims by opponents of a then-pending Federal Communications Commission rule change on Internet regulation. The Fact Checker awarded Three Pinocchios to widely-cited claims that the FCC reclassification would cost $15 billion a year in new taxes and fees. Since the fact check published, some network neutrality proponents misquoted it on social media, either attributing the Pinocchios to the study by the Progressive Policy Institute or to the $11 billion figure. Most recently, FCC Chairman Tom Wheeler misused the fact check during a House Appropriations Committee budget hearing on March 24, 2015. On Feb. 26, 2015, the FCC voted to reclassify Internet service. The cost impact remains to be seen. Some state and local government leaders may decide to levy fees, and the FCC may decide to extend federal fees. A recent calculation placed additional annual costs at $6.25 billion. We will continue to monitor the issue. For now, however, we caution everyone commenting on net neutrality to check the facts, and beware of the myriad unknowns. The Fact Checker certainly does not appreciate being misquoted.
benton.org/headlines/setting-record-straight-network-neutrality-fact-check | Washington Post
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MORE INTERNET/BROADBAND

MAP: THE STATE OF BROADBAND IN THE STATES
[SOURCE: Washington Post, AUTHOR: Niraj Chokshi]
Broadband speeds are expanding nationwide and the conditions seem good for even more growth. All but seven states saw average peak connection speeds grow between the third and fourth quarters of 2014, an indication that Internet connection capacity is growing across the country, according to a new State of the Internet report from Akamai Technologies, which hosts content online. Delaware held onto its top ranking among the states, with average peak speeds of 75.4 megabits per second. Virginia jumped four spots to claim second place at 73.5 Mbps. DC was third at 65.9 Mbps, followed by Massachusetts and Rhode Island. Kentucky unseated Arkansas as the state with the slowest average peak speeds, clocking in at 34 Mbps. Akamai argues that the average peak connection speed is most representative of Internet connection capacity. Speeds have gained over the past few quarters and that trend is expected to continue, Akamai reports. US average peak broadband speed was 49.4 Mbps. The US average connection speed was 11.1 Mbps. The average peak connection speed was up 16 percent over the fourth quarter in 2013, and the average connection speed was up 15 percent over the same period.
benton.org/headlines/map-state-broadband-states | Washington Post | Report | telecompetitor
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INDUSTRY SELLS CONGRESS ON INTERNET OF THINGS
[SOURCE: nextgov, AUTHOR: Mohana Ravindranath]
Lawmakers are increasingly interested in applying the Internet of Things -- the same network that lets consumers control their toasters and thermostats by smartphone -- to public issues, such as unemployment and economic growth. At an Energy and Commerce subcommittee hearing on March 24, representatives asked witnesses from technology companies about applications beyond consumer electronics, as well as Congress' role in regulating that ecosystem of connected devices, objects and sensors. This hearing happened weeks after the first-ever congressional hearing on the topic, held in February by the Senate Commerce, Science and Transportation Committee. Separately, the Senate passed a bipartisan resolution on March 24 to develop a national strategy on the Internet of Things, incentivizing its development and deployment. Congressional discussion has touched on various applications for such a network -- monitoring the electrical smart grid and farm fields in remote rural areas and providing communication platforms for public defenders, among others. At the Energy and Commerce hearing, Brian Van Harlingen, chief technology officer at consumer technology company Belkin, noted that the company had received a Defense Department grant to reduce energy costs at two test sites in the US, using sensor and machine-learning algorithms. Rose Schooler, vice president of Intel’s Internet of Things business group, noted that the US is behind other nations, including Germany, Brazil and China, which already have national plans on the topic.
benton.org/headlines/industry-sells-congress-internet-things | nextgov
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SPECTRUM/WIRELESS

SPECTRUM BILL
[SOURCE: Washington Post, AUTHOR: Brian Fung]
Congress wants to open up even more spectrum to meet that demand for wireless data, by looking to the vast swaths of radio frequencies controlled by the federal government. A bill from Reps Doris Matsui (D-CA) and Brett Guthrie (R-KY) will seek to do just that. In the Senate, Deb Fischer (R-NE) and Ed Markey (D-MA) are introducing an identical bill. The resulting auction of government airwaves could be a boon for industry, consumers and federal coffers. "This legislation would create the first-ever incentive auction for federal agencies and -- for once -- offer revenue to federal spectrum users," said Rep Matsui. "It is a game-changer." The legislation, which was previously considered in the last Congress and has backing from key committee lawmakers such as Rep. Greg Walden (R-OR), directs the Federal Communications Commission to set up a sale of federal spectrum. And there's a lot of it.
benton.org/headlines/congress-wants-open-vast-troves-federal-airwaves-your-cell-phone | Washington Post
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VERIZON IS OBVIOUS BUYER OF SPECTRUM FROM DISH AND SPRINT
[SOURCE: Fierce, AUTHOR: Sue Marek]
Verizon Wireless may have scored big in the Federal Communication Commission's recent $45 billion AWS-3 spectrum auction by securing more $10.8 billion in new spectrum in major markets. But one financial analyst believes that the operator is in dire need of more spectrum, because it has over 40 percent of the industry's postpaid customers on its network and controls less than 20 percent of available spectrum. BTIG analyst Walter Piecyk wrote in a research note that Verizon is preparing to launch an over-the-top video service later in 2015, and there is some speculation that the company will integrate this with its wireless services. If so, Piecyk says, the company will be increasingly limited by its spectrum position. And even if it uses LTE Broadcast technology to be more spectrally efficient, that technology still uses a "decent chunk of spectrum," so the company will need more spectrum to offer that service wirelessly. Because of this, Piecyk says that he believes Verizon is the most obvious buyer of spectrum from the secondary market from players such as Dish Network and Sprint. However, Piecyk admits that the company could run into problems from the FCC's spectrum screen, which the agency uses to evaluate spectrum purchases. Specifically, the FCC does not want any single operator to have more than one-third of usable spectrum in a market. The agency uses the screen to determine whether proposed deals after the auction should be subjected to a more detailed competitive analysis. However, Piecyk notes that the FCC's "definition of usable spectrum can be subjective and inputs of the spectrum screen can be altered with any new proposed transaction."
benton.org/headlines/verizon-obvious-buyer-spectrum-dish-and-sprint | Fierce
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T-MOBILE, SPRINT AND DISH PUSH FOR 40 MHZ SPECTRUM RESERVE 600 MHZ AUCTION
[SOURCE: Fierce, AUTHOR: Phil Goldstein]
T-Mobile, Sprint, and Dish Network continued to push for the Federal Communications Commission to reserve up to 40 MHz of spectrum for smaller carriers to bid on in the incentive auction of 600 MHz broadcast TV spectrum. The current reserve is capped at 30 MHz. Yet executives from those companies acknowledged that this is just one of many issues carriers, broadcasters and regulators will need to deal with in the months ahead as the early-2016 start date for the auction draws closer. During the "Incentive Auction Opportunities and Perils" panel, executives from the carriers grappled with a wide range of issues. Much still needs to be resolved in terms of the technical rules for the auction. All of the panelists noted that the FCC and auction participants will need to balance how much broadcasters are willing to sell their spectrum for with how much carriers are realistically going to spend to acquire that spectrum, in what is shaping up to be a fiendishly complex auction. Yet the reserve question kept cropping up. For months T-Mobile has been pushing for at least 40 MHz to be reserved for smaller carriers, and Sprint and Dish executives agreed with that formulation. AT&T and Verizon will have too much low-band spectrum in many markets to bid on the spectrum.
benton.org/headlines/t-mobile-sprint-and-dish-push-40-mhz-spectrum-reserve-600-mhz-auction | Fierce
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OWNERSHIP

FTC STATEMENT ON GOOGLE INVESTIGATION
[SOURCE: Federal Trade Commission, AUTHOR: FTC Chairwoman Edith Ramirez, FTC Commissioner Julie Brill, FTC Commissioner Maureen Ohlhausen]
The Federal Trade Commission conducted an exhaustive investigation of Google’s internet search practices during 2011 and 2012. Based on a comprehensive review of the voluminous record and extensive internal analysis, of which the inadvertently disclosed memo is only a fraction, all five Commissioners (three Democrats and two Republicans) agreed that there was no legal basis for action with respect to the main focus of the investigation – search. As we stated when the investigation was closed, the Commission concluded that Google’s search practices were not, “on balance, demonstrably anticompetitive.” Contrary to recent press reports, the Commission’s decision on the search allegations was in accord with the recommendations of the FTC’s Bureau of Competition, Bureau of Economics, and Office of General Counsel. Some of the FTC’s staff attorneys on the search investigation raised concerns about several other Google practices. In response, the Commission obtained commitments from Google regarding certain of those practices. Over the last two years, Google has abided by those commitments.
benton.org/headlines/statement-chairwoman-edith-ramirez-and-commissioners-julie-brill-and-maureen-ohlhausen | Federal Trade Commission | Revere Digital | NYTimes
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SECURITY/PRIVACY

WHITE HOUSE: NO PLAN B IF NSA DEADLINE PASSES
[SOURCE: The Hill, AUTHOR: Julian Hattem]
The Obama Administration will end the National Security Agency’s bulk collection of Americans’ phone records if Congress is unable to reauthorize an expiring provision, the White House confirmed. “If Section 215 sunsets, we will not continue the bulk telephony metadata program,” National Security Council spokesman Ned Price said. While top-ranking officials at the Office of the Director of National Intelligence had previously said that there would be no backup plan in the event of congressional inaction, the new statement is the first time the White House has made clear that the program will wholly end if lawmakers fail to move forward. The statement also clarifies that the Administration will not seek to pursue a legal loophole to continue the phone records collection. “In addition, allowing Section 215 to sunset would result in the loss, going forward, of a critical national security tool that is used in a variety of additional contexts that do not involve the collection of bulk data,” Price said. “That is why we have underscored the imperative of congressional action in the coming weeks, and we welcome the opportunity to work with lawmakers on such legislation.”
benton.org/headlines/white-house-no-plan-b-if-nsa-deadline-passes | Hill, The | Reuters
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DATA BREACH BILL MOVES FORWARD IN THE HOUSE
[SOURCE: The Hill, AUTHOR: Elise Viebeck]
Legislation to create a national data security and breach notification standard moved forward over objections from Democratic lawmakers. The House Energy and Commerce Subcommittee on Trade approved the bill by voice vote after a markup that saw five Democratic amendments rejected along party lines. The bill from Reps. Marsha Blackburn (R-TN) and Peter Welch (D-VT) appears headed for further changes before its markup by the full committee. The measure would require companies to maintain reasonable security practices and inform customers within 30 days if their data might have been stolen during a breach. Violating the bill’s rules would subject companies to enforcement actions by the Federal Trade Commission (FTC). Disagreements over the bill lie in its pre-emption of state data security and breach notification standards. Several Democrats argued that the legislation, while saving companies the hassle of following separate state laws, would do away with stronger consumer protections at the state level. Massachusetts Attorney General Maura Healey has criticized the legislation, saying it would “scale back our state’s essential safeguards against cybercrime.”
benton.org/headlines/data-breach-bill-moves-forward-house | Hill, The | House Commerce Committee
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TELECOM

SENS KLOBUCHAR, TESTER INTRODUCE BILL TO IMPROVE RURAL COMMUNICATIONS AND ADDRESS CALL COMPLETION CHALLENGES
[SOURCE: US Senate, AUTHOR: Sen Amy Klobuchar (D-MN)]
Sens Amy Klobuchar (D-MN) and Jon Tester (D-MT) introduced a bill to improve rural communications and address call completion challenges. Persistent phone call completion problems in rural communities across the country are creating major inconveniences for families, hurting businesses, and threatening public safety. A 2012 test call project found that nearly one in five calls placed to rural areas were delayed, of poor quality, or incomplete. The legislation -- the Improving Rural Call Quality and Reliability Act -- would direct the Federal Communications Commission to establish basic quality standards for providers that transmit voice calls to help ensure businesses, families, and emergency responders can count on phone calls being completed. The Improving Rural Call Quality and Reliability Act would direct the FCC to establish basic quality standards for providers that transmit voice calls to help prevent the discriminatory delivery of calls to any and all areas of our country. The legislation also directs the FCC to require these providers to register with the agency. These reforms would ensure small businesses, families, and emergency responders in rural America can once again rely upon their telephone calls being completed. The legislation is supported by the National Association of Regulatory Utility Commissioners, the NTCA–The Rural Broadband Association, and the Western Telecommunications Alliance.
benton.org/headlines/sens-klobuchar-tester-introduce-bill-improve-rural-communications-and-address-call | US Senate | Public Knowledge
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TELEVISION

ESPN WILL COST $36.30 PER SUB IN A LA CARTE WORLD PRICED BY 'REACH', ANALYST SAYS
[SOURCE: Fierce, AUTHOR: Daniel Frankel]
In a video programming business that will be increasingly dominated by over-the-top distribution and skinnier bundles, "reach" -- the actual percentage of viewers that watch a channel over a set time period -- will have a much greater role in defining consumer pricing. And using some complex mathematical formulas, MoffettNathanson analyst Michael Nathanson arrived at some interesting per-subscriber price projections for major cable networks operating in a world where channels get paid based more purely on the amount of people who actually watch them. As it is with previous speculative models for a la carte pricing, Disney's ESPN is a prime example in Nathanson's study, currently distributed in the vast majority of pay-TV homes and commanding a per-subscriber fee averaging out to around $6.10. In an a la carte scenario, Nathanson postulates that ESPN's distribution dwindles to about 16.81 percent of TV homes, matching its reach. With the smaller distribution footprint, advertising revenue also goes down. Disney would have to charge a per-sub fee of $36.30 to maintain its current margins, Nathanson postulates. TNT would cost around $8.95 a sub in this scenario. Disney Channel ($8.25), USA Network ($5.45) and Nickelodeon ($4.99) would also be pricey.
benton.org/headlines/espn-will-cost-3630-sub-la-carte-world-priced-reach-analyst-says | Fierce
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OPEN GOVERNMENT

IDEAS FOR THE NEW WHITE HOUSE CHIEF DIGITAL OFFICER
[SOURCE: nextgov, AUTHOR: Luke Fretwell]
[Commentary] On March 24, the White House named former Twitter product lead Jason Goldman as the nation’s first chief digital officer. In his announcement, Goldman asks citizens (using the hashtag #socialcivics) to share their answers to the question, “How can we -- our government and you and your communities -- better connect online to make America better?” Here are my ideas:
Turn WhiteHouse.gov into a media outlet for our times.
In a perfect world, we’d modernize USA.gov, because this could truly begin to unite and inspire citizens (and those aspiring to be) around the concept of a unified “America.”
Go casual. Government, especially Washington, DC, is seen as too buttoned-up, and this plays into its approachability and interest. Most people tune out authority during a conversation, because they assume they’re either not being listened to or are going to get lectured.
Take “petitions” out of “We the People.” Currently, WTP is branded as a tool for citizens to share their grievances, rather than a mechanism to have a conversation
Have a call to action for everything. After every post, photo or video, direct citizens to engagement.
Think about the general experience and make it easier for citizens to find what they need. What we know from the new federal analytics dashboard is that citizens want to complete a task related to a form. If it’s difficult to find to accomplish these tasks, your efforts around the above will lose merit.
[Luke Fretwell is the founder of GovFresh]
benton.org/headlines/ideas-new-white-house-chief-digital-officer | nextgov
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March 26, 2015 ("You're playing God with the Internet."