Daily Digest 12/17/2018 (A Year After)

Benton Foundation
Table of Contents

Net Neutrality

A Year Without Net Neutrality: No Big Changes  |  Read below  |  Klint Finley  |  Wired
The FCC's Darkest Day  |  Read below  |  Andrew Schwartzman  |  Press Release  |  Benton Foundation
One Year Later,  |  Read below  |  Gigi Sohn  |  Op-Ed  |  Medium
The Latest Net Neutrality Head Count in the House  |  Read below  |  Cristiano Lima  |  Politico
D.C. Marks Anniversary of Restoring Internet Freedom Order  |  Multichannel News
A Year After the Net Neutrality Repeal, Latinos are Still Waiting for Increased Broadband Deployment, Choice in Providers ...  |  National Hispanic Media Coalition
Roslyn Layton: Despite the media’s prophecies of doom a year ago, the internet is alive and well  |  American Enterprise Institute

More Broadband/Internet

Effects of broadband availability on total factor productivity in service sector firms: Evidence from Ireland  |  Read below  |  Stefanie Haller, Sean Lyons  |  Research  |  Telecommunications Policy
RUS Broadband Pilot Program Funding Opportunity  |  Read below  |  Acting Administrator Christopher McLean  |  Public Notice  |  Rural Utilities Service
The Future of American Broadband Is a Comcast Monopoly  |  Read below  |  Karl Bode  |  Vice
Bills, Bills, Bills  |  Read below  |  Cristiano Lima  |  Politico
New Data, Old Divides  |  Read below  |  Robbie McBeath  |  Analysis  |  Benton Foundation

Wireless

Text, Californians, text: State commission won't pursue tax on text messaging  |  Read below  |  Eli Blumenthal  |  USA Today
Cable industry to add 1.6M mobile customers in 2019, analysts predict  |  Fierce

Broadcasting

Justice Department Requires Divestitures to Resolve Antitrust Concerns in Gray’s Merger With Raycom  |  Department of Justice

Platforms/Content

Responding to The Guardian: A Fact-Check on Fact-Checking  |  Facebook
Facebook looks for new income as display ads stagnate  |  Axios
Op-ed: Dr. Google Is a Liar -- Fake news threatens our democracy. Fake medical news threatens our lives.  |  New York Times
Netflix’s Movie Blitz Takes Aim at Hollywood’s Heart  |  New York Times

Labor

Tech Workers Got Paid in Company Stock. They Used It to Agitate for Change.  |  Read below  |  Kate Conger  |  New York Times

Elections

New report on Russian disinformation, prepared for the Senate, shows the operation’s scale and sweep  |  Read below  |  Craig Timberg, Tony Romm  |  Washington Post

Security

Apparently, T-Mobile, Sprint see US security approval for deal after Huawei concessions  |  Reuters
The Huawei fallout leaves companies and countries with an impossible choice  |  Washington Post
Huawei Hemorrhages Allies in Europe on Growing Security Concerns  |  Bloomberg
Inside Huawei's Secret HQ, China Is Shaping the Future  |  Bloomberg
Huawei: FCC Can't Block USF Funding  |  Read below  |  John Eggerton  |  Multichannel News
US Tech Giant Cloudflare Provides Cybersecurity For At Least 7 Terror Groups  |  Huffington Post
FEC votes to allow lawmakers to use campaign funds for personal cybersecurity  |  Hill, The

Privacy

Op-Ed: It’s time for a Bill of Data Rights  |  Technology Review

Facebook says a new bug allowed apps to access private photos of up to 6.8 million users  |  Washington Post

Government & Communications

First-ever Fact Checker poll: Few Americans believe President Trump’s false statements  |  Washington Post

Journalism

The Weekly Standard, a conservative magazine critical of President Trump, to shutter after 23 years  |  CNN

Policymakers

Chairman Pai hopes to find common ground with lawmakers in the new Congress  |  Read below  |  Cristiano Lima  |  Politico
FirstNet Moves Forward with New Board Members, Vision for Maximizing Network Impact for Public Safety  |  Department of Commerce
South Bend (IN) mayor says politicians need to make tech policy personal  |  Washington Post

Industry/Company News

 
 
2018 Year in Review: America’s Communications Is Mired in a Toxic Swamp.  |  Bruce Kushnick
Google Details Major New York Expansion  |  Wall Street Journal
 
Today's Top Stories

Net Neutrality

A Year Without Net Neutrality: No Big Changes (Yet)

Klint Finley  |  Wired

It's been one year since the Federal Communications Commission voted to gut its net neutrality rules. The good news is that the internet isn't drastically different than it was before. But that's also the bad news: The net wasn't always so neutral to begin with. Broadband providers didn't make any drastic new moves to block or cripple the delivery of content after the FCC's order. That makes perfect sense given the uncertain future of net neutrality protections. State attorneys general, net neutrality advocates, and industry groups representing companies like Facebook and Netflix are locked in a legal battle against the FCC over the new rules. And Congress is considering overturning the decision. Any egregious violations of the principles of net neutrality by broadband providers would provide ammunition to advocates who want the old rules restored.

The FCC's Darkest Day

Andrew Schwartzman  |  Press Release  |  Benton Foundation

Today we mark a trifecta of governmental malfeasance: last year, the FCC’s majority ignored bipartisan public support for the net neutrality protections the Commission adopted in 2015; it displayed a flawed and factually inaccurate understanding of Internet technology, and it misinterpreted U.S. communications law. Last year, Benton promised that net neutrality was not dead and predicted wins at both ballot boxes and in the courts. In November, the American public overwhelmingly backed candidates that support net neutrality. In February 2019, Benton will join many public interest advocates and private companies bringing their case against the flawed, Orwellian-named, Restoring Internet Freedom Order before a federal appeals court.

Benton remains steadfast in our commitment to preserving and protecting an open and free Internet. Strong, enforceable network neutrality rules promote access, diversity, equity, and innovation. Net neutrality rules are crucial for empowering our most-vulnerable communities, enabling them to dispel misperceptions and stereotypes that restrict their political, social, and economic participation. And, in an increasingly digital age, neutrality is essential for our democracy, protecting the Internet as a forum for free expression.

One Year Later, Net Neutrality is Needed More than Ever

Gigi Sohn  |  Op-Ed  |  Medium

Federal Communications Commission Chairman Ajit Pai would have you believe that the network neutrality repeal was of no consequence — the Internet wasn’t destroyed, cute pictures of cats and dogs are still in abundance, Google and Netflix are alive and well. But even in the short 6 months since the Dec 14, 2017 repeal of the net neutrality rules became effective, we have seen how consumers and competitors lose when broadband providers are given license to self-regulate and the FCC discards its responsibility to oversee the market.

The one year anniversary of the repeal of the FCC’s 2015 net neutrality rules is not one to celebrate. It’s now up to the courts, the states or Congress to reinstate the rules and the FCC’s legal authority to protect consumers and competition. Otherwise, we’ll see more consumers, public safety officials and innovators with no place to go when their broadband provider answers to no one.

[Gigi Sohn serves as a Benton Senior Fellow]

The Latest Net Neutrality Head Count in the House

Cristiano Lima  |  Politico

Rep. Mary Gay Scanlon (D-PA) became the latest lawmaker to come out in favor of the discharge petition to bring net neutrality to a vote on to the House floor. The latest pledge comes just a few days after the formal deadline to file the discharge petition elapsed. But Fight for the Future Deputy Director Evan Greer, whose group is rallying support to restore net neutrality, said that “now that the session has been extended by two weeks there are theoretically ways that House rules could be used to still force a vote with a majority signed on to the discharge petition.” Even so, the petition at the moment remains well short of the 218 backers needed to bring the issue to a vote in the current session. Without including Rep Scanlon, 180 Democrats have signed onto the petition so far, with Reps. Susan Wild (D-PA) and Frederica Wilson (D-FL) formally joining the ranks. Scanlon’s announcement came amid public pressure from consumer groups and a day after a GQ report — titled “Corporate-Friendly Democrats Are Standing in the Way of Reviving Net Neutrality” — highlighted campaign contributions she received from telecom giant Comcast.

Broadband/Internet

Effects of broadband availability on total factor productivity in service sector firms: Evidence from Ireland

Stefanie Haller, Sean Lyons  |  Research  |  Telecommunications Policy

While broadband is widely believed to augment productivity, there is little firm-level evidence of a generalised causal effect. In this paper we examine whether the introduction of digital subscriber line (DSL) broadband services increased firms' productivity in nine sub-sectors within the services and distribution sector in Ireland from 2006 to 2012. Firm-level panel data on firms' characteristics are linked to spatial information on the rollout of DSL. While we do not find significant productivity effects in the services sectors taken together, we do find positive and significant effects on firm's total factor productivity in Information & Communication and Administrative & Support Services.

RUS Broadband Pilot Program Funding Opportunity

Acting Administrator Christopher McLean  |  Public Notice  |  Rural Utilities Service

The Rural Utilities Service (RUS) announces its general policy and application procedures for funding under the broadband pilot program established pursuant to the Consolidated Appropriations Act, 2018 which provides loans, grants, and loan/ grant combinations to facilitate broadband deployment in rural areas. In facilitating the expansion of broadband services and infrastructure, the pilot will fuel long-term rural economic development and opportunities in rural America. One of those opportunities is precision agriculture. The use of this technology requires a robust broadband connection. The awards made under this program will bring high-speed broadband to the farms which will allow them to increase productivity.

The Future of American Broadband Is a Comcast Monopoly

Karl Bode  |  Vice

The Federal Communications Commission released a new, 182-page Communications Marketplace Report it claims proves the US broadband industry is awash with vibrant competition. In reality, consumer groups, third-party data and the report itself paint a starkly different picture; one where consumers increasingly only have access to just one Internet service provider: Comcast.

Most DSL providers still fail to deliver the FCC’s base definition of broadband (25 Mbps) to huge swaths of their footprints. Why? Despite billions in subsidies over the years, upgrading these aging networks isn’t profitable enough, quickly enough, for Wall Street’s liking. As a result, many telcos have shifted their focus elsewhere, leaving frustrated users in their wake. As a result, companies like Comcast and Charter Spectrum are quietly securing a greater monopoly over broadband. Less competition means that, contrary to FCC Commissioner Brendan Carr’s claims, American consumers continue to pay some of the highest prices for broadband in the developed world—while receiving some of the worst customer service of any sector in America.  While the FCC insists that broadband is getting cheaper, faster, and more widely available thanks to its recent policies (like killing net neutrality), most American consumers’ first-hand experiences—and the FCC’s own data—continue to paint a dramatically different picture.

Bills, Bills, Bills

Cristiano Lima  |  Politico

The Senate advanced a series of tech and telecom-related bills by unanimous consent on Dec 13, including:

  • the AMBER Alert Nationwide Act, S. 3461, which expands the alert system to cover US territories and major transportation routes;
  • the Measuring the Economic Impact of Broadband Act, S. 645, which mandates that the Commerce Department examine and report on the effects of the digital economy; and
  • an amended version of the National Quantum Initiative Act, H.R. 6227, which directs the president to implement a National Quantum Initiative Program to establish a plan to develop the technology.

New Data, Old Divides

Robbie McBeath  |  Analysis  |  Benton Foundation

On Dec 6, the US Census Bureau released the 2013-2017 American Community Survey (ACS) five-year estimate including data on internet subscription rates. The new data provide powerful insight into the inequity of US broadband adoption, especially among neighboring counties. But the research also re-emphasizes the necessity for more accurate broadband maps.  At Benton, our goal is to bring open, affordable, high-capacity broadband to all people in the U.S. to ensure a thriving democracy. Accurate broadband maps are one necessary step towards realizing this vision. 

Wireless

Text, Californians, text: State commission won't pursue tax on text messaging

Eli Blumenthal  |  USA Today

California's Public Utilities Commission (CPUC) announced it would no longer be pursuing a measure that would've added a surcharge to phone bills for text messaging. "On Dec. 12, 2018, the Federal Communications Commission (FCC) issued a declaratory ruling finding that "text messaging" is an information service, not a telecommunications service, under the Federal Telecommunications Act," the CPUC wrote in its statement. The CPUC noted that if texting were a telecommunications service it would be subject to state tax under California law. "In light of the FCC's action, assigned Commissioner Carla J. Peterman has withdrawn from the CPUC's Jan. 10, 2019 Voting Meeting" the proposal that would've added the tax.

Labor

Tech Workers Got Paid in Company Stock. They Used It to Agitate for Change.

Kate Conger  |  New York Times

Silicon Valley technology firms are known for giving stock to their workers, a form of compensation that often helps employees feel invested in their companies. But tech workers are now starting to use those shares to turn the tables on their employers. As many tech employees take a more activist approach to how their innovations are being deployed and increasingly speak out on a range of issues, some are using the stock as a way to demand changes at their companies. Employee shareholder proposals may ultimately not be effective since shareholder-led proposals are often shot down. And because tech founders often possess a large chunk of the shares in their companies — Jeff Bezos, Amazon’s founder and its largest shareholder, owns 16 percent of the company; the Google founders Larry Page and Sergey Brin have about 51 percent of voting shares in Alphabet — the proposals have little chance of passing without founder support. Tech employees said it was worth taking that risk. 

Elections

New report on Russian disinformation, prepared for the Senate, shows the operation’s scale and sweep

Craig Timberg, Tony Romm  |  Washington Post

A report prepared for the Senate that provides the most sweeping analysis yet of Russia’s disinformation campaign around the 2016 election found the operation used every major social media platform to deliver words, images and videos tailored to voters’ interests to help elect President Donald Trump — and worked even harder to support him while in office. The report is the first to study the millions of posts provided by major technology firms to the Senate Intelligence Committee, led by Sen. Richard Burr (R-NC), its chairman, and Sen. Mark Warner (VA), its ranking Democrat. The bipartisan panel hasn’t said whether it endorses the findings. It plans to release it publicly along with another study soon. The research — by Oxford University’s Computational Propaganda Project and Graphika, a network analysis firm — offers new details of how Russians working at the Internet Research Agency, which U.S. officials have charged with criminal offenses for interfering in the 2016 campaign, sliced Americans into key interest groups for targeted messaging. These efforts shifted over time, peaking at key political moments, such as presidential debates or party conventions, the report found.

Security

Huawei: FCC Can't Block USF Funding

John Eggerton  |  Multichannel News

Chinese telecom Huawei has again told the Federal Communications Commission that the commission's proposal to exclude some Chinese companies' technology--Huawei and ZTE-- from Universal Service Fund broadband subsidy support is both legally and factually deficient. Government contractors can't buy equipment from Chinese telecoms ZTE or Huawei as part of those contracts, and must submit a plan for phasing out the use of that equipment from its systems. That came with President Donald Trump's signing on Aug 13 of the John S. McCain National Defense Authorization Act and after the companies were called out by top US intelligence officials as tied to the Chinese government and thus a national security threat. Huawei says that the Act's prohibition is on government loan or grant programs, not the USF subsidy, and that even if it did, "it would be arbitrary and capricious for the Commission to rely upon it as a basis for its proposed rule banning expenditure of any USF support funds on equipment and services manufactured by specified companies."

Chairman Pai hopes to find common ground with lawmakers in the new Congress

Cristiano Lima  |  Politico

Federal Communications Commission Chairman Ajit Pai didn’t quite rule out an eventual run for office and said he hopes to find common ground with lawmakers in the new Congress. He said his 2019 agenda will focus on on rural broadband, telemedicine, 5G, public safety communications and robocalls. Regarding the Mobility Fund, he wouldn’t say the consequences carriers could face as a result of the investigation into whether one or more carriers overstated their wireless coverage for maps that will determine eligibility for subsidies under the $4.5 billion program. He said the agency is committed to getting accurate data first. “Our goal is to make sure that we get the data right that will allow us to make an informed decision about where that funding should go."

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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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