Daily Digest 12/14/2018 (USDA e-Connectivity Program)

Benton Foundation
Table of Contents

Broadband

Department of Agriculture Launches New Program to Create High-Speed Internet e-Connectivity in Rural America  |  Read below  |  Press Release  |  Department of Agriculture
Statement of Assistant Secretary Redl on USDA Loan and Grant Program  |  National Telecommunications and Information Administration
FCC Releases Form 477 Data on Broadband Deployment as of December 2017  |  Read below  |  Public Notice  |  Federal Communications Commission
Gigi Sohn says Dems will use oversight on net neutrality  |  Read below  |  Julia Manchester  |  Hill, The
Roslyn Layton: Despite the media’s prophecies of doom a year ago, the internet is alive and well  |  American Enterprise Institute
The Racial Digital Divide Persists  |  Read below  |  Dana Floberg  |  Analysis  |  Free Press
Muni Broadband’s Ominous Threat to the First Amendment  |  Read below  |  FCC Commissioner Michael O'Rielly  |  Press Release  |  Federal Communications Commission

Universal Service

Proposed First Quarter 2019 Universal Service Contribution Factor  |  Read below  |  Public Notice  |  Federal Communications Commission
More States Launch Lifeline National Verifier  |  Read below  |  Public Notice  |  Federal Communications Commission
Sen Manchin (D-WV) Manchin puts hold on Carr's FCC nomination over wireless internet fund delay  |  Read below  |  Harper Neidig  |  Hill, The
Rural Wireless Association: T-Mobile lied to the FCC about its 4G coverage  |  Read below  |  Jon Brodkin  |  Ars Technica

Platforms/Content

Are social media companies motivated to be good corporate citizens?  |  Read below  |  Jennifer Grygiel, Nina Brown  |  Research  |  Telecommunications Policy
Online, Vulnerable Groups Only Become More Vulnerable  |  Read below  |  Spandana Singh, Dillon Roseen  |  Analysis  |  New America
President Trump and Democrats signal support for antitrust action on tech companies  |  Washington Post
Casey Newton: How Congress missed another chance to hold big tech accountable  |  Vox
YouTube removed 7.8 million videos and 1.6 million channels in the last 3 months. Hateful and violent videos are just a sliver  |  Washington Post
Over 75 Million People Visit Facebook Watch Daily, Spending an Average of 20+ Minutes  |  AdWeek

Television

Justice Department Reaches Settlement With Nexstar Media Group Inc. in Ongoing Television Broadcaster Information Exchange Investigation  |  Read below  |  Press Release  |  Department of Justice

Elections

Trump Inaugural Fund and Super PAC Said to Be Scrutinized for Illegal Foreign Donations  |  Read below  |  Sharon LaFraniere, Maggie Haberman, Adam Goldman, Rebecca Davis O'Brien, Rebecca Ballhaus, Aruna Viswanatha  |  New York Times, Wall Street Journal

Government & Communications

US courts are figuring out if the government can block you on Facebook  |  Quartz

Privacy/Security

Amazon’s Disturbing Plan to Add Face Surveillance to Your Front Door  |  American Civil Liberties Union
Op-ed: Kids Shouldn’t Have to Sacrifice Privacy for Education  |  New York Times
Data Breach Notification in the United States and Territories  |  Privacy Rights Clearinghouse
Opinion: The Divide Between Silicon Valley and Washington Is a National-Security Threat  |  Atlantic, The
CDT’s Federal Baseline Privacy Legislation Discussion Draft  |  Center for Democracy and Technology
Joi Ito: What the California Wildfires Can Teach Us About Data Sharing  |  Wired
Encryption Backdoors Put More at Risk Than You Might Think  |  New America
Federal Court Rules You Have the Right to Record the Cops—Even in Secret  |  New America

Kids and Media

Young Adults Consume Less Media Than Their Parents, Nielsen Report Says  |  Hollywood Reporter

Advertising

Neustar: TV Remains Big For Movie Ad Spend, But Facebook Posts Higher Efficiency  |  MediaPost

Labor

Startup Founders Think Real Progress on Diversity Is Years Away  |  Wired
Tech companies are aggressively taking their talent hunt across the United States and elsewhere  |  New York Times

2018 in Review

18 striking findings from 2018  |  Pew Research Center
2018’s tech trends and tribulations in 14 charts  |  Vox

Policymakers

Gigi Sohn, Renowned Public Advocate and Net Neutrality Pioneer, Joins EFF’s Board  |  Read below  |  Karen Gullo  |  Press Release  |  Electronic Frontier Foundation

Company News

Sinclair 2018: Even having a friend in the Oval Office couldn't save this troubled year  |  Read below  |  David Zurawik  |  Baltimore Sun
Apple plans new facilities in Austin, Seattle, San Diego and Culver City  |  Wall Street Journal
Facebook is expanding its video platform while reportedly slashing news show funding  |  Vox
Tribune Publishing ends talks about selling company to McClatchy  |  Chicago Tribune

Stories From Abroad

 
Google and Facebook to push hard against Australian proposal for regulatory body  |  Guardian, The
Op-ed: Indians are reshaping the Internet  |  Washington Post
Jailing Hundreds of Journalists Worldwide Is the ‘New Normal,’ Group Finds  |  New York Times
After Yellow Vests Come Off, Activists in France Use Facebook to Protest and Plan  |  New York Times
Today's Top Stories

Broadband

Department of Agriculture Launches New Program to Create High-Speed Internet e-Connectivity in Rural America

Press Release  |  Department of Agriculture

The United States Department of Agriculture (USDA) is offering up to $600 million in loans and grants to help build broadband infrastructure in rural America. Telecommunications companies, rural electric cooperatives and utilities, internet service providers and municipalities may apply for funding through USDA’s new ReConnect Program to connect rural areas that currently have insufficient broadband service. Answering the Administration’s call to action for rural prosperity, Congress appropriated funds in the fiscal year 2018 budget for this broadband pilot program. USDA Rural Development is the primary agency delivering the program, with assistance from other federal partners. 

USDA will make available approximately $200 million for grants (applications due to USDA by April 29), as well as $200 million for loan and grant combinations (applications due May 29), and $200 million for low-interest loans (applications due by June 28). Projects funded through this initiative must serve communities with fewer than 20,000 people with no broadband service or where service is slower than 10 megabits per second (mbps) download and 1 mbps upload. Approved projects must create access speeds of at least 25 mbps upload and 3 mbps download. Priority will be awarded for projects that propose to deliver higher-capacity connections to rural homes, businesses and farms. USDA seeks to stretch these funds as far as possible by leveraging existing networks and systems without overbuilding existing services greater than 10/1 mbps. Evaluation criteria include connecting agricultural production and marketing, e-Commerce, health care and education facilities. Previous research by USDA has demonstrated that high-capacity broadband is critical to all aspects of rural prosperity, including the ability to grow and attract businesses, retain and develop talent, and maintain rural quality of life.

FCC Releases Form 477 Data on Broadband Deployment as of December 2017

Public Notice  |  Federal Communications Commission

The Federal Communications Commission's Wireline Competition Bureau (WCB) and the Wireless Telecommunications Bureau (WTB) released updated data on fixed broadband deployment and mobile voice and broadband deployment as of December 31, 2017. These data were collected through FCC Form 477 and are available on the FCC's website. Fixed Deployment Data are available at https://www.fcc.gov/general/broadbanddeployment-data-fcc-form-477 and Mobile Deployment Data are available at https://www.fcc.gov/mobile-deployment-form-477-data. The fixed broadband data include revisions made by filers through November 13, 2018, while the mobile deployment data include revisions made by filers through June 13, 2018.

Gigi Sohn says Dems will use oversight on net neutrality

Julia Manchester  |  Hill, The

Benton Senior Fellow and Public Advocate Gigi Sohn said that the new Democratic-majority House will probe the handling of net neutrality by the Trump administration.  She noted that Democrats are “angry” with the Federal Communications Commission repealing the rules that protected consumers from slowing or blocking internet content.

"This FCC has had a very, very easy two years," said Sohn. "I think there's going to be oversight both on the substance of what the FCC has done and also on the process. On the substance, net neutrality. So this is the principle that your internet service provider shouldn't be able to block, throttle or otherwise discriminate against particular internet content. The FCC repealed the rules that we adopted in 2015, in 2017, and that has made Democrats very, very angry." 

The Racial Digital Divide Persists

Dana Floberg  |  Analysis  |  Free Press

In 2016, Free Press released Digital Denied, which showed that disparities in broadband adoption — commonly known as the digital divide —stem not only from income inequality, but from systemic racial discrimination. The report found that nearly half of all people in the country without home-internet access were people of color. Much of that gap was indeed the result of income inequality. People of color generally have far lower average incomes than White people, and low-income families often cannot afford to subscribe to home broadband. But even when we accounted for these differences of income and other demographic factors like education and employment, a racial digital divide still persisted. Even among the same income brackets, Blacks and Hispanics still  lagged behind Whites in broadband adoption. Since the report’s release, further research has demonstrated the need for affordable options — but has devoted little attention to the impact of racial inequities. But instead of trying to fix it, our policymakers have sent a signal that mobility crumbs are good enough for people of color who can’t afford expensive wired services or can’t clear the credit-check hurdle — even though mobile broadband is less reliable, less robust and sometimes subject to restrictive data caps.

Muni Broadband’s Ominous Threat to the First Amendment

FCC Commissioner Michael O'Rielly  |  Press Release  |  Federal Communications Commission

As a staunch supporter of limited government and free speech, I have regularly objected to government attempts to own and control the nation’s communications networks. I have been a staunch critic of government projects to build and operate broadband networks. Beyond flirting with a perverse form of socialism, municipalities’ overbuilding of private providers creates market inefficiencies, distorts competitive outcomes, encourages regulatory favoritism towards state-owned networks, and can be a waste of taxpayer money. Even in instances where municipal, or muni, broadband reaches unserved areas, it substantially deters private entities from entering a market. Moreover, as I recently discussed in a speech at the Media Institute’s annual gala in honor of free speech, certain muni broadband providers have been known to precondition access to their networks on acceptance of vague speech codes, creating an ominous threat to the First Amendment. 

Universal Service

Proposed First Quarter 2019 Universal Service Contribution Factor

Public Notice  |  Federal Communications Commission

The Federal Communications Commission's Office of Managing Director (OMD) announces that the proposed universal service contribution factor for the first quarter of 2019 will be 0.200 or 20.0 percent. Total Projected Collected Interstate and International End-User Telecommunications Revenues for First Quarter 2019: $12.289162 billion.

More States Launch Lifeline National Verifier

Public Notice  |  Federal Communications Commission

The Federal Communications Commission's Wireline Competition Bureau (Bureau) announces that effective January 15, 2019, the National Lifeline Eligibility Verifier (National Verifier) will fully launch in five states – Hawaii, Idaho, New Hampshire, North Dakota, and South Dakota – and one territory – Guam. Starting on January 15, 2019, Eligible Telecommunications Carriers (ETCs) in these five states and one territory will be required to use the National Verifier to make eligibility determinations for all consumers applying for Lifeline service and must cease using legacy eligibility processes for prospective Lifeline subscribers. In addition, on that same day, consumers can begin to check their eligibility for Lifeline service directly by using the National Verifier consumer portal available at CheckLifeline.org. The consumer portal is available in both English and Spanish language versions. Finally, consumers, as well as service providers, will be able to mail Lifeline program forms and documentation to USAC for manual review.

The FCC established the National Verifier in the 2016 Lifeline Order to make eligibility determinations and perform a variety of other functions necessary to enroll subscribers in the Lifeline program.1

Sen Manchin (D-WV) Manchin puts hold on Carr's FCC nomination over wireless internet fund delay

Harper Neidig  |  Hill, The

Sen Joe Manchin (D-wV) has placed a hold on Commissioner Brendan Carr's renomination to the Federal Communications Commission in response to the FCC’s decision to pause a program that would fund wireless internet expansion in rural areas. Sen Manchin announced the hold on Carr's renomination a week after FCC Chairman Ajit Pai announced that the agency’s Mobility Fund Phase II program would be suspended temporarily while regulators investigate whether major wireless carriers submitted false data on their coverage maps.

Sen Manchin said that “inaccurate” maps are not a good enough reason to put the funds on hold. “Last week the FCC finally recognized that their broadband maps were inaccurate,” Sen Manchin said. “That’s something that I have been saying since day one. But the answer is not to put the Mobility Fund on an indefinite hold that prevents states like West Virginia from receiving the funding they desperately need to deploy mobile broadband.”

Rural Wireless Association: T-Mobile lied to the FCC about its 4G coverage

Jon Brodkin  |  Ars Technica

The Rural Wireless Association (RWA) claims T-Mobile lied to the Federal Communications Commission about the extent of its 4G LTE coverage. T-Mobile claimed—under penalty of perjury—to have coverage in areas where it hadn't yet installed 4G equipment. As part of the FCC's Mobility Fund challenge process, RWA members have conducted millions of speed tests at their own expense to determine whether the major carriers' coverage claims are correct. Those speed tests previously found that Verizon didn't cover the entire Oklahoma Panhandle as the carrier claimed. More recent tests found similar results for T-Mobile, the RWA said:

The record is replete with filings, by RWA and others, detailing concerns about overstated Verizon coverage. In addition, there are also concerns about overstated coverage by T-Mobile. RWA members discovered through the challenge process that—in many areas—T-Mobile projected its future 4G LTE coverage and reported that coverage to the Commission ahead of or by the January 4, 2018 deadline instead of the coverage it had in place by the January 4, 2018 deadline. RWA members noted that the coverage data submitted by the January 4, 2018 deadline had to be certified as accurate under penalty of perjury.

Platforms/Content

Are social media companies motivated to be good corporate citizens?

Jennifer Grygiel, Nina Brown  |  Research  |  Telecommunications Policy

This paper explores the connection between corporate social responsibility and social media safety. By examining the legal framework governing social platforms in the United States and case studies of online harms, we explore whether current US laws and company content moderation policies are effective in eliminating content (revenge porn and acts of terrorism) that is universally agreed to be harmful. Finally, the paper makes a number of suggestions for improvements in policy.

Online, Vulnerable Groups Only Become More Vulnerable

Spandana Singh, Dillon Roseen  |  Analysis  |  New America

Disruptions and threats to an individual’s digital security have profound impacts on that individual’s willingness to use technology—a particularly big problem when you consider just how much technology permeates people’s everyday lives.

[Spandana Singh is a policy program associate in New America's Open Technology Institute, where she researches and reports on policies and practices related to content regulation, transparency reporting, privacy, surveillance, countering violent extremism, cybersecurity, and emerging technologies. Dillon Roseen was a Millennial Public Policy Fellow in New America’s Cybersecurity Initiative.]

Broadcasting

Justice Department Reaches Settlement With Nexstar Media Group Inc. in Ongoing Television Broadcaster Information Exchange Investigation

Press Release  |  Department of Justice

The Department of Justice has reached a settlement with Nexstar Media Group, one of the largest owners of television stations in the country, as part of its ongoing investigation into exchanges of competitively sensitive information in the broadcast television industry. The Department filed an amended complaint in the case United States v. Sinclair Broadcast Group, Inc., et al., adding Nexstar Media Group Inc. as a defendant.  At the same time, the Department filed a proposed settlement with Nexstar that, if approved by the court, would resolve the competitive harm alleged in the complaint.  The Department filed its original complaint in the case on Nov. 13, 2018, along with proposed settlements with six other television broadcasting companies.

According to the amended complaint, Nexstar agreed with other entities in many metropolitan areas across the United States to exchange revenue pacing information, and also engaged in the exchange of other forms of non-public sales information in certain metropolitan areas.  Pacing compares a broadcast station’s revenues booked for a certain time period to the revenues booked in the same point in the previous year.  Pacing indicates how each station is performing versus the rest of the market and provides insight into each station’s remaining spot advertising for the period. By exchanging pacing information, Nexstar and other broadcasters were better able to anticipate whether their competitors were likely to raise, maintain, or lower spot advertising prices, which in turn helped inform their stations’ own pricing strategies and negotiations with advertisers.  As a result, the information exchanges harmed the competitive price-setting process.

The proposed settlement prohibits the direct or indirect sharing of such competitively sensitive information.

Elections

Trump Inaugural Fund and Super PAC Said to Be Scrutinized for Illegal Foreign Donations

Sharon LaFraniere, Maggie Haberman, Adam Goldman, Rebecca Davis O'Brien, Rebecca Ballhaus, Aruna Viswanatha  |  New York Times, Wall Street Journal

Federal prosecutors are examining whether foreigners illegally funneled donations to President Trump’s inaugural committee and a pro-Trump super PAC in hopes of buying influence over American policy. The inquiry focuses on whether people from Middle Eastern nations — including Qatar, Saudi Arabia and the United Arab Emirates — used straw donors to disguise their donations to the two funds. Federal prosecutors in Manhattan are investigating whether President Trump’s 2017 inaugural committee misspent some of the record $107 million it raised from donations. The criminal probe by the Manhattan U.S. attorney’s office also is examining whether some of the committee’s top donors gave money in exchange for access to the incoming Trump administration, policy concessions or to influence official administration positions.

Giving money in exchange for political favors could run afoul of federal corruption laws. Diverting funds from the organization, which was registered as a nonprofit, could also violate federal law.

Policymakers

Gigi Sohn, Renowned Public Advocate and Net Neutrality Pioneer, Joins EFF’s Board

Karen Gullo  |  Press Release  |  Electronic Frontier Foundation

Gigi Sohn, a leading public advocate for the concept that broadband Internet should be open, affordable, and competitive, has joined the board of directors of the Electronic Fronteir Foundation. A lawyer and innovator who has both counseled and stood up to the Federal Communications Commission—albeit not always at the same time—Sohn has fearlessly worked for over 30 years to make US communications networks accessible to all consumers and protective of user privacy. 

As counselor to former FCC Chairman  Tom Wheeler from 2013 to 2016, Gigi played a big role in the FCC’s adoption of the strongest-ever net neutrality rules, earning recognition in the tech press as one of the “Heroes Who Saved the Internet.” Gigi helped co-found Public Knowledge (PK), the nation’s leading nonprofit representing consumer interests in telecommunications policy, and served as its president from 2001 to 2013. She is currently a Distinguished Fellow at the Georgetown Law Institute for Technology Law & Policy and a Benton Senior Fellow and Public Advocate. Gigi has been a fellow at Mozilla and the Open Society Foundation.
 

Company News

Sinclair 2018: Even having a friend in the Oval Office couldn't save this troubled year

David Zurawik  |  Baltimore Sun

In december 2017, the Sinclair Broadcast Group was riding about as high as a media company can ride these days. The company was poised to close on a $3.9 billion deal for Tribune Media that would make it the most powerful broadcast group in the nation with more than 200 stations and, finally, a presence in such big time markets of New York and Los Angeles. It clearly had a friend in the White House in Donald Trump, and it looked like the president’s support was going to make the deal a slam dunk for Federal Communications Commission approval with a little help from FCC Chair Ajit Pai, who was greasing the skids by rolling back ownership cap rules.

But what a difference 12 months have made in the life of Sinclair. In August the deal to take over Tribune not only turned to dust, but it ended with the Chicago-based company suing Sinclair for $1 billion for breach of contract. The FCC had sent the Sinclair deal to its doom by ordering further review after essentially accusing the company of shady behavior in the information it did — and did not — share with the regulators about its plan to sell stations in Chicago and Texas. Sinclair has taken a PR pounding this year for some of the things it has done onscreen, no doubt about it. But I wonder if the deeper takeaway at the end of the year doesn’t involve what happened off-screen with the FCC’s repudiation of the Trump-like crony capitalism that the Baltimore broadcaster was proposing in those sidecar arrangements on stations like WGN. Between the Tribune suit and the FCC action, would you be eager to go into business with Sinclair after the way Tribune and the FCC characterized its behavior?

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Benton (www.benton.org) provides the only free, reliable, and non-partisan daily digest that curates and distributes news related to universal broadband, while connecting communications, democracy, and public interest issues. Posted Monday through Friday, this service provides updates on important industry developments, policy issues, and other related news events. While the summaries are factually accurate, their sometimes informal tone may not always represent the tone of the original articles. Headlines are compiled by Kevin Taglang (headlines AT benton DOT org) and Robbie McBeath (rmcbeath AT benton DOT org) — we welcome your comments.


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