Daily Digest 3/20/2018 (AT&T-Time Warner; Facebook-Cambridge Analytica)

Benton Foundation

Broadband in Tennessee; Students and the Digital Divide; and a fireside chat on wireless infrastructure https://www.benton.org/events

Ownership

Justice Department's effort to halt AT&T-Time Warner merger goes to trial as both sides spar over evidence

The high-stakes antitrust showdown over AT&T's planned $85 billion purchase of Time Warner began in a Washington courtroom as both sides sparred over some key issues that signaled their legal strategies. Opening arguments aren't scheduled until March 21 in a trial U.S. District Judge Richard DeLeon said could last six to eight weeks — about twice as long as originally estimated when the Justice Department sued last fall to halt the deal. Each side will have 30 witnesses and DeLeon told attorneys for the federal government and AT&T that he'd allow extra witnesses if necessary because the case is "too important" to try to stick to a rigid timetable. AT&T's lead attorney, Daniel Petrocelli, took aim at thousands of pages of emails from AT&T employees that the Justice Department wants to submit as evidence of potential competitive harms of the deal. Petrocelli argued that the government was asserting too broad a view of what is considered a business record. But Justice Department attorney Eric D. Welsh said many of the emails and other documents from AT&T employees are relevant to the case. He said they include "some very startling statements."

Broadband/Internet

A wide gulf between federal agencies on broadband competition

[Commentary] With the Department of Justice (DOJ) litigation to stop the AT&T-Time Warner merger set to go to trial on March 19, it is revealing to compare different views about network power from the agency’s perch on the north side of the National Mall with those of the Federal Communications Commission on the other side. In 2015 the Obama FCC justified its Open Internet Rules, in part, because of the lack of competitive choice consumers had in high-speed broadband service providers. The Commission found that two-thirds of American households had one choice for high-speed broadband at most. The Trump FCC chose to overlook this monopoly when it abolished the Open Internet Rules at the request of the monopolists. The Justice Department’s assessment of the broadband market is less fanciful: the Trump DOJ told the court that high-speed broadband is essentially a monopoly. For incumbents such as AT&T, the DOJ told the court that network expansion “has largely been limited to footprint expansion” – not competition expansion. When the United States Department of Justice tells a trial court that AT&T has sought to use its network monopoly power “to slow the growth of its online competitors,” it contradicts the Pollyannaish portrayal of the broadband market propagated by the Trump FCC as it turned its back on an open internet. Perhaps the leadership of the FCC should have crossed the National Mall to gain insight into what is really happening in the market it is supposed to oversee.

[Tom Wheeler is the former Chairman of the Federal Communications Commission]

Applications Now Being Accepted for $2 Billion Rural Broadband Auction

The Federal Communications Commission is now accepting applications from broadband providers of all kinds to participate in Summer 2018's Connect America Fund Phase II reverse auction.  Providers must submit their applications by March 30, when the application window closes. The auction will make available up to $1.98 billion in support over the next decade to help build out high-speed Internet access to up to 1 million homes and small businesses in rural areas across the country that lack service. The auction will provide opportunities for new and existing providers using a variety of technologies to compete for support, including phone companies, fixed wireless providers, satellite providers, cable companies, and rural electric utilities. The auction is scheduled to begin on July 2.

American Cable Association Seeks to Ally With FCC in Net Neutrality Fight

The American Cable Association has officially joined the court challenge of the Federal Communications Commission's network neutrality rule rollback, filing a motion to intervene in the case with the US Court of Appeals for the Ninth Circuit.  ACA is intervening on the side of the FCC, to "help defend the Federal Communications Commission's ruling that restored light-touch regulation to providers of high-quality broadband facilities and infrastructure to millions of users in rural America." An intervenor is a party with a demonstrable interest in the outcome, something ACA certainly has, representing hundreds of ISPs directly impacted by the FCC’s decision to move them out from under common carrier regulations. ACA told the court it has contacted both sides and neither objects to its intervenor status.

Privacy

Cambridge Analytica met with Lewandowski before Trump campaign launch

A former Cambridge Analytica employee said that the data firm met with former Trump campaign manager Corey Lewandowski in 2015, before President Donald Trump declared his candidacy. Christopher Wylie, a self-described whistleblower on the company’s data harvesting practices said that he left Cambridge Analytica before it formally teamed up with the Trump campaign. However, he said the company had been in talks with the campaign before Trump announced his candidacy, including a 2015 meeting with Lewandowski. Wylie claimed that he was suspended from Facebook for shedding light on the practices.“I think what’s really important for people to understand is that this company misappropriated data from upwards of 50 million people from Facebook,” he said. “We need to step back for a second and depoliticize this because this is about the safety of Americans and the integrity of the American democratic process."

Wireless/Spectrum

Fixed wireless coalition takes on Facebook, Google and more over 6 GHz sharing proposal

The Fixed Wireless Communications Coalition (FWCC) says a study backed by the likes of Apple, Facebook, Google, Microsoft, Intel, Qualcomm and others is badly flawed and should not be relied upon to allow for an array of unlicensed devices in the 6 GHz band. Earlier in 2018, representatives from Apple, Broadcom, Cisco Systems, Hewlett Packard Enterprise, Facebook, Google, Intel, MediaTek, Microsoft and Qualcomm met with Federal Communications Commission representatives where they presented a study, prepared by RKF Engineering Solutions, that analyzed sharing between unlicensed operations in the 6 GHz band and existing services. The upshot: The study showed that unlicensed services can successfully coexist with the primary services present in the 6 GHz band. And that’s about where the FWCC says it went off the rails. The FWCC’s analysis showed that the uncontrolled distribution of unlicensed devices—in the numbers and at the power levels RKF studied—would indeed cause widespread harmful interference to fixed microwave receivers.“If our results are correct, it follows that RKF’s analysis went badly off the rails,” the coalition said in its March 13 filing.  “Unfortunately, RKF’s report is convoluted and hard to read in ways that make its assumptions and methods impossible to reverse-engineer.”

via Fierce

FCC Ruling on 5G Infrastructure May Hurt Cities

The Federal Communications Commission is poised to make a directive on 5G, the next-generation, high-speed wireless standard, that could significantly affect local government control of infrastructure. Two cities, San Jose (CA) which lies in the heart of Silicon Valley, and Lincoln (NE) an innovative university and capitol city, both could be profoundly affected if the FCC decides to “cut red tape” with modifications to small cell antenna deployment rules. On March 22, the FCC will meet to eliminate unnecessary regulations to “provide better broadband, connect underserved areas and create jobs,” according to FCC Commissioner Brendan Carr.  But local officials argue the regulatory process serves an important purpose. “By removing the historic and environmental review, and taking away local control, it won’t allow cities to make sure that 5G is deployed in an equitable manner for citizens,” said Shireen Santosham, the chief innovation officer for the city of San Jose. “Small (5G) cells will not solve the digital divide; we need to know that there will be service to rural and low-income areas,” she said. Santosham sees the FCC moves as a cynical way of taking away local control of the infrastructure deployment while promising to cover those who do not already have connectivity.

CTIA hopeful for siting reform, says stakes are ‘huge’ when it comes to 5G

The US can still win the race to 5G—but it’s got to pass some significant reforms like those being considered by the Federal Communications Commission to make it happen. That’s the message from CTIA (a large wireless industry trade group) President and CEO Meredith Attwell Baker, who’s calling 2018 the year for action, because, as she puts it, “The stakes are huge.” Baker said she wholeheartedly agrees with Nokia CEO Rajeev Suri’s assessment of the situation, where the US and China are neck-and-neck when it comes to 5G. Baker said she’s encouraged by the item on the FCC’s March agenda that seeks to clarify and modernize procedures for National Historic Preservation Act (NHPA) and National Environmental Policy Act (NEPA) reviews of wireless infrastructure deployments.

via Fierce
Stories From Abroad

How Europe's New Privacy Law Will Change the Web, and More

Consumers have long wondered just what Google and Facebook know about them, and who else can access their personal data. But internet giants have little incentive to give straight answers.  On May 25, however, the power balance will shift towards consumers, thanks to a European privacy law that restricts how personal data is collected and handled. The rule, called General Data Protection Regulation or GDPR, focuses on ensuring that users know, understand, and consent to the data collected about them. Under GDPR, pages of fine print won’t suffice. Neither will forcing users to click yes in order to sign up. Instead, companies must be clear and concise about their collection and use of personal data like full name, home address, location data, IP address, or the identifier that tracks web and app use on smartphones. Companies have to spell out why the data is being collected and whether it will be used to create profiles of people’s actions and habits. Moreover, consumers will gain the right to access data companies store about them, the right to correct inaccurate information, and the right to limit the use of decisions made by algorithms, among others.

via Wired
More Online

 


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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