Daily Digest 12/8/2017 (Data Caps and Fees)

Benton Foundation

FCC Chairman Pai Serves Up Zingers at DC Dinner

Federal Communications Commission Chairman Ajit Pai took aim at Sinclair and Verizon, but mostly at himself, at the Federal Communications Bar Association Dinner in Washington, an annual self-roast of sorts in front of a crowd of lawyers, lobbyists and journalists at the Hilton Hotel. Chairman Pai, who already injects more humor into monthly meetings than any chairman in the last three decades at least, was in his element cracking wise about the big issues of the day, though the speech was relatively light on the cultural or song references. He opened with a phrase in Russian on the order of "this is going to be a big night." He segued into net neutrality, joking that there were only seven more days to use the Internet.  "You think I'm joking," he added. "It's true….I read it on the Internet." 

Net Neutrality

ISP disclosures about data caps and fees eliminated by net neutrality repeal

Hidden fees that show up on broadband bills after customers sign up for service have long been a source of frustration for Internet users. Because advertised prices often don't reflect the full cost of service, the Federal Communications Commission in 2015 forced ISPs to be more transparent with customers about hidden fees and the consequences of exceeding data caps. The new requirements were part of the net neutrality rules—and are therefore going to be eliminated when the FCC votes to repeal the rules next week. While FCC Chairman Ajit Pai is proposing to keep some of the commission's existing disclosure rules and to impose some new disclosure requirements, ISPs won't have to tell consumers exactly what everything will cost when they sign up for service.

Congress can’t ‘fix’ net neutrality with a new bill. Here’s why.

[Commentary] The path to victory for network neutrality supporters requires strong leadership from Capitol Hill — but it shouldn’t include a legislative “fix.” First of all, we have a good law already. It’s called Title II of the Communications Act.  What’s more, the Title II Net Neutrality rules have been upheld in court. And the existing law is immensely popular among Republican and Democratic voters, public advocates and businesses. Passing a new bill with enough support from current Republican leadership would mean watering down the rules and undermining internet users’ rights. Even if a new bill closed those loopholes, Title II does more than simply protect Net Neutrality. The existing statute also gives the FCC unquestionable legal authority to modernize the Lifeline program subsidizing low-income families’ access to broadband. Title II also gives the FCC authority to protect our privacy from broadband providers’ intrusions. But what about a perfect bill that enshrined both Net Neutrality and all other relevant Title II protections? It would be dead on arrival in this Congress. [Dana Floberg, Free Press]

How Google and Facebook Could Save Net Neutrality

[Commentary] It looks like it’s too late for politicians to protect net neutrality. The Federal Communications Commission is almost certainly going to repeal it, and the Republican-controlled Congress is unlikely to pass a bill mandating that all web traffic be treated equally. But corporations can still save Americans from this threat. Members of the Internet Association could band together to fund an internet service provider that would guarantee neutrality and offer service to every American at affordable rates. Google Fiber could build out its existing services nationwide with funding from these other companies who have a huge interest in protecting open access to the net. Even if the effort is costly, it would be less expensive than the potential alternative of customers being unable to access their sites. [Kara Alaimo is an assistant professor of public relations at Hofstra University]

A corrupted public comment process should lead the FCC to delay its upcoming net neutrality vote

[Commentary] Net neutrality shouldn't be a controversial issue. Pipelines and power grids, telephones and railroads, all must comply with common carrier regulations that prohibit discrimination and special treatment. There's little reason for the internet to be any different. The promise of the internet exists in its open, unrestricted nature. Nevertheless, the Federal Communications Commission is scheduled to vote on rolling back its net neutrality regulations on Thursday, Dec. 14.  The tech trade group Internet Association is pushing for the FCC to delay its vote. This would be a smart move. The upcoming decision on net neutrality has been tarnished by questions about whether official public comments to the FCC were littered with fraudulent submissions.  If we lose net neutrality, expect to see more corporate contraptions designed to promote Wall Street concerns and squeeze consumers for cash in exchange for worse service and fewer options. Don't like it? Too bad, you might be stuck. More than 50 million U.S. households lack any competition in the broadband market. If Pai wants to see innovation, maybe he should start by breaking up these lumbering corporate giants. The internet doesn't exist to serve as a cash cow for telecoms and the American people must not tolerate regulations that allow these near-monopolies to occupy the internet with their own private toll booths. [Editorial Board]

Statement by Broadband for America Ahead of FCC Vote on Restoring Internet Freedom

America’s broadband providers are 100% committed to a free and open internet and have always practiced net neutrality regardless of government regulations or rules because that is what their customers demand.  Additionally, all of the major providers have announced clear and strong policies ensuring no blocking, no throttling, and no unfair discrimination against lawful traffic online. It’s good business, good practice, and what internet users expect. While we fully understand consumer interest in this issue, we also want to make clear that many false claims, wild accusations and doomsday scenarios circulating about the future of the internet are way off base and shouldn’t be taken at face value. The FCC’s proposed action next week will simply restore the light touch regulation that governed the internet from its existence until public utility rules were imposed in 2015 and will not change the free and open internet experience we all value and expect.

Consumer Favorability Ratings for Large ISPs Withstand Net Neutrality Heat

Scorching criticism of internet service providers over their stance on net neutrality for much of 2017 hasn’t hurt their standing with US consumers — though some weren’t that popular to begin with. For Comcast, there was practically nowhere to go but up. Thirty-two percent of respondents had a very or somewhat favorable view of Comcast the day Federal Communications Commission Chairman Ajit Pai announced his repeal plans; 26 percent had an unfavorable opinion. By Nov. 28, Comcast’s favorability had risen slightly to 38 percent, while 27 percent of respondents held an unfavorable view of the company, but the numbers were in line with the overall trend for the prior several months. As of Dec. 6, 35 percent of U.S. consumers reported having a favorable opinion, while 28 percent had an unfavorable opinion. Verizon’s standing with the public also edged up during the same time period, but also in line with its overall trend in the months prior to Pai’s introduction of his plan. Fifty-four percent of U.S. adults said they held a very or somewhat favorable view of Verizon on Nov. 21, while 26 percent said they held an unfavorable view of the company. By Nov. 28, Verizon’s favorability improved slightly to 56 percent, while its unfavorable numbers had dipped one-point to 25 percent. As of Dec. 6, Verizon’s favorability rating was at 58 percent, with a 22 unfavorability rating.

Five Reasons Chairman Pai Says Gutting Net Neutrality Helps Startups and Why They’re All Nonsense

via Engine

The man who could doom net neutrality: Ajit Pai ignores outcry from all sides

 The main support for Federal Communications Commission Chairman Ajit Pai has for the rollback comes from the handful of powerful broadband companies that stand to benefit, including Comcast and his former employer Verizon, who argue that the rules stand in the way of innovation. “He seems to be under the thrall of very powerful business interests in Washington to the extent that he is dismissive of all other arguments,” said Timothy Karr, campaign director at Free Press. “Any input that would in any way upset his entrenched views about helping these powerful cable companies.” “He’s certainly not acting in the interest of the public,” said Jay Stanley, a senior policy analyst at the ACLU. Instead of scrubbing the FCC of Obama’s legacy, Pai should be focusing on addressing real problems such as broadband quality in the rural US, said Pierce Stanley, technology fellow at Demand Progress. “In some rural areas, 40% of people have zero or one choice of ISP. After Chairman Pai’s plan, that’s 40% of people who have no choice the day Comcast starts throttling and they can’t go to another provider. They are stuck. That’s really concerning.” Dozens of activist groups called for a delay because of a pending court case involving AT&T and regulatory authority over ISPs. In response, Pai’s office issued a statement describing “supporters of heavy-handed internet regulations” as becoming “more desperate by the day” and said the vote would proceed as scheduled. “We find that deeply troubling,” said Karr. “He’s really dismissing a very important component of rule-making, which is democratic engagement.” Instead of engaging with the public, Chairman Pai has turned his attention to social media companies – who have been vocal opponents to the repeal – describing them as enabling the “worst of human impulses” and criticising the control they exert over online content.

Inside the Opposition to a Net Neutrality Repeal

Hundreds of protests were staged across the country on Dec 7 in the latest uproar over a repeal of rules ensuring an open internet. The drumbeat of action can in good part be traced back to a yellow Victorian house in Worcester (MA). The home is the nerve center for Fight for the Future, a scrappy 10-person nonprofit that has helped lead the opposition to the change — even if its effort to protect so-called net neutrality has the longest of odds. For months, the founders, Tiffiniy Cheng and Holmes Wilson, have pushed the group’s 1.8 million supporters to flood social media sites with warnings about how the change could favor big companies and hurt smaller ones. They have also supplied online tools to their followers, like one that makes it easier to call lawmakers and another to file comments directly to the Federal Communications Commission, the agency considering the repeal. Fight for the Future has organized hundreds of internet companies to alter their websites — slowing them down, for example — to show what online experiences could be like without the rules. “We believe people care about this enough to take a stand,” said Cheng.

Education

How the FCC Might Soon Disconnect Students

The Federal Communications Commission has taken a series of worrying actions since former FCC Commissioner Ajit Pai ascended to the role of chairman in January 2017. On Feb 3, the FCC abruptly rescinded the glowing E-rate report that had just been released two and a half weeks prior. Later, when pressed at his confirmation hearing in July, Chairman Pai wouldn’t commit to the Senate Commerce Committee that he’d maintain the current funding levels for the E-Rate program. If past is prologue, the FCC’s recent actions to undermine the Lifeline program, which provides low-income Americans with subsidies for internet and phone access, suggest that the FCC may opt to take similar actions against E-Rate. This makes the otherwise common “public notice” release even more concerning: In November, the FCC voted to move forward on a series of proposals that would impose strict expenditure caps, a limit on the amount of time a program recipient could use Lifeline, and policies that would cut Lifeline service for many current subscribers. There have so far been no concrete assurances that the FCC will continue to support E-Rate at its current level.

Ownership

AT&T Antitrust Fight Flips the Script in Washington

AT&T’s bid to buy Time Warner is blurring some of the ideological lines that usually split free-market conservatives from liberal skeptics of big business. On the left, some Democratic US senators who questioned the deal earlier have avoided addressing the issue since the Justice Department sued to stop the $85 billion combination. State attorneys general who joined a similar campaign against Comcast’s 2011 takeover of NBCUniversal have likewise sat out the latest government effort to thwart corporate concentration, at least for now. On the other side, the politically conservative head of the department’s antitrust division, Makan Delrahim, decided to move forward with the lawsuit. President Donald Trump has echoed the agency’s arguments and called the deal “not good for the country.” “Everybody in Washington is a bit tangled in knots around the politics of this deal,” said Gene Kimmelman, head of left-leaning consumer-advocacy group Public Knowledge, which co-signed a letter with Americans for Limited Government and other groups asking the Justice Department to block the deal.

Privacy/Security

Transatlantic Data Privacy

Democratic Sens question privacy, security of Facebook's 'Messenger Kids'

Sens Ed Markey (D-MA) and Richard Blumenthal (D-CT) are questioning the privacy and security of Facebook’s new messaging app, which is designed for kids under 13, expressing their concerns in a letter to Facebook CEO Mark Zuckerberg.  “We remain concerned about where sensitive information collected through this app could end up and for what purpose it could be used,” they wrote. “Facebook needs to provide assurances that this ‘walled garden’ service they describe is fully protective of children.” The senators want proof that Facebook is complying with Children’s Online Privacy Protection Act, a Federal Trade Commission regulation that imposes rules on collecting data from children under 13 on the internet.

Public Broadcasting

Public Media at 50: Looking to the Future

Fifty years ago, President Lyndon B. Johnson signed the Public Broadcasting Act, which established the Corporation for Public Broadcasting. Its charge was to conceive, develop and expand noncommercial broadcasting and it led to the creation of the Public Broadcasting Service and National Public Radio. This anniversary is a fine moment to recall and commemorate values imbued in the Public Broadcasting Act, and the vital contributions to our national discourse and culture that followed. It’s also a useful prompt to look critically at the present and imagine a better future. When public broadcasting started in the United States, there were only three networks, stringing together stations with only local or regional reach. Original public funding was significant and, in the early years, sponsorship to enhance corporate image became a staple of public funding.

Emergency Communications

FCC Releases Its Initial Findings Regarding the 2017 National Emergency Alert System Test (Federal Communications Commission)

Hurricane Season’s Over – But the FCC's Work Continues

While the Atlantic hurricane season is behind us, recovery efforts – particularly in Puerto Rico and the U.S. Virgin Islands – are ongoing.  As the Commission works to support communications service restoration in areas hard-hit by the storms, we are also assessing what lessons may be learned from this experience and applied to future emergencies.  On Dec 7 the FCC issued a Public Notice seeking comment on the government and communications industry’s preparation for and response to the 2017 hurricane season, including what worked and areas for improving service availability and restoration during disasters. We want to hear from all stakeholders, including the public safety community; state, local, territorial, and tribal officials; industry; consumer groups; and federal response partners.  This input will inform the workshop(s) that we plan to hold next year to further explore the matter.  Our aim is to build on successful approaches and develop options to address shortfalls as we prepare for future disasters.  We are also considering what additional steps will assist this process. Communications networks are critical to reaching help, assisting emergency response, and disseminating vital information during times of crises.  We welcome your views as we work together to ensure that America’s communications networks are resilient against future disasters.  [Fowlkes is Chief of the FCC's Public Safety and Homeland Security Bureau]

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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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