Wednesday, May 22, 2019
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Digital Divide and Infrastructure Legislation on Today's Agenda
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Sens Shelley Moore Capito (R-WV) and Maggie Hassan (D-NH) reintroduced the bipartisan Rural Reasonable and Comparable Wireless Access Act to help close the rural-urban digital divide and expand access to broadband in rural parts of West Virginia, New Hampshire, and across the country. The Act directs the Federal Communications Commission to establish a national standard for determining whether mobile and broadband services in rural areas are “reasonably comparable” to service provided in urban areas. The bill will help ensure that there is equitable wireless and broadband service in rural and urban areas, which has long be undefined. “As we work to close the digital divide across the country, setting a national standard is important in order to measure progress,” Sen Capito said. “I’m proud to sponsor this bill because by requiring the FCC to set that standard, we can better identify how we can build out broadband quicker and more effectively across rural areas like West Virginia.”
The Department of Commerce's National Telecommunications and Information Administration will submit to the Office of Management and Budget (OMB) for clearance a proposal for voluntary collection of broadband availability data. In the Consolidated Appropriations Act of 2018, Congress directed NTIA to update the national broadband availability map in coordination with the Federal Communications Commission and the states. Congress directed NTIA to acquire and display available third-party data sets to the extent it is able to negotiate its inclusion to augment data from the FCC, other federal government agencies, state governments, and the private sector. NTIA has developed this voluntary collection of broadband availability data, at a more granular level than that available via current Federal programs (including the FCC Form 477 process). This data will be used to analyze and map broadband availability across the country, and particularly in rural areas, for the purposes of public policy-making and public investment analysis and decision-making. This information collection covers the 50 states, the District of Columbia, the Commonwealth of Puerto Rico, the Island Areas of American Samoa, the Commonwealth of the Northern Mariana Islands, Guam, and the United States Virgin Islands.
The data to be collected includes geographic information on service availability—such as address, address range, road centerline, land-parcel identification, or latitude/longitude— and corresponding broadband availability data (such as technology service type, upload, and download speed, etc.) Data in a Geographic Information Systems (GIS) format that describe (a) wireless coverage areas based on a propagation model and (b) network infrastructure (such as fiber optic routes) is also responsive. The information collection will be administered through an online file transfer tool.
Written comments and recommendations for the proposed information collection should be sent within 30 days
There is simply no business case for investment in many rural areas without more effective public-private partnerships. That is why recent efforts in Washington to target funding and bridge broadband gaps in rural America are so important. Rather than creating new programs out of whole cloth, we encourage Congress to look to existing federal programs with proven track records, like the Federal Communications Commission’s Universal Service Fund, as it considers how to distribute additional direct funding resources. Most importantly, all federal agencies with a shared mission of promoting universal access to broadband must coordinate to ensure programs are working in concert, so that federal resources are used to deploy and sustain networks, and to prevent duplication of efforts. Broadband is the infrastructure challenge of the 21st century. When allocating resources to bridge our country’s digital divide, however, we have a message to Congress: Use programs that have stood the test of time to invest in technologies that can stand the test of time.
[Shirley Bloomfield is CEO of NTCA–The Rural Broadband Association. Jonathan Spalter is president and CEO of USTelecom–The Broadband Association.]
Despite a host of concessions offered by Sprint and T-Mobile that won over Federal Communications Commission Chairman Ajit Pai, the fate of the deal hinges on the competition questions that reportedly continue to dog the deal at the Department of Justice. At the DOJ, deals are approved if they won't hurt competition, which is usually determined by potential impact on consumer prices. Discord between the FCC and DOJ is unusual, as the agencies usually collaborate and share information during merger reviews. In past telecommunication deals involving reviews by both the FCC and DOJ, the agencies often announce their decisions in quick succession. If the DOJ sues to block the merger, it could go to court — or the two companies could give up on their plans. State attorneys general are also still reviewing the deal.
T-Mobile suffered a significant setback in its bid for regulatory approval of its takeover of Sprint after failing to win over the Department of Justice (DOJ) with a remedy package, putting pressure on the companies to offer more concessions. "I don’t see how any concessions short of somehow helping to set up a new fourth competitor could make this deal palatable to DOJ,” said Gigi Sohn, a Benton senior fellow and former aide to previous Federal Communications Commission Chairman Tom Wheeler. The antitrust division may be worried that the companies’ promises to speed deployment of the next-generation of wireless technology (5G) doesn’t outweigh harm to consumers from combining two national carriers. If the division’s concerns are limited to competition in the market for pre-paid phone plans, where wireless customers pay as they go rather than taking out subscriptions, that problem is fixable, said Blair Levin, an analyst with New Street Research and a former FCC chief of staff. But if the DOJ is concerned about a deal that would leave just three national players, that presents a bigger challenge. “It is tough to thread the needle of a condition that the government would see as solving the problem and T-Mobile wouldn’t see as too expensive,” Levin said.
Sens Bernie Sanders (I-VT) and Amy Klobuchar (D-MN) are criticizing Federal Communications Commission Chairman Ajit Pai's decision to greenlight the merger of T-Mobile and Sprint -- the latest sign that antitrust issues are core to many of their 2020 platforms. Sens Sanders and Klobuchar say a merger of the telecommunications giants would leave consumers with fewer choices. Sen Klobuchar, who is expected to publish a book on antitrust issues later in 2019, said the deal could harm competition. “T-Mobile has long been a competitive disruptor in the market, bringing down prices and spurring innovation,” she said. “I don’t think going from four to three major carriers will be good for competition in the long term.”
Although Sens Sanders and Klobuchar were the only ones to weigh in on May 20, other 2020 contenders are on record criticizing the deal. Earlier in 2019, Sens Sanders, Kobuchar, Kirsten Gillibrand (D-NY), Elizabeth Warren (D-MA), and Cory Booker (D-NJ) were among the Democratic senators who sent a letter to Chairman Pai, calling on the FCC to reject the deal.
Federal Communications Commission Chairman Ajit Pai has now decided that a handful of promises, made just days ago by T-Mobile and Sprint, puts this $26 billion transaction in the public interest. But these promises are speculative, unsubstantiated, and entirely unenforceable. With a majority of the FCC seemingly in favor of approving the merger, the final decision now falls the Department of Justice's assistant attorney general for antitrust Makan Delrahim. Thankfully, he has shown a willingness to reject anticompetitive and anticonsumer deals in media and telecommunications, including the mergers of AT&T and Time Warner, and Sinclair and Tribune. This should be an even easier call both for the DOJ and for the courts.
[Gigi Sohn is a fellow at the Georgetown Law Institute for Technology Law and Policy, a Benton senior fellow, and former counselor to previous FCC Chairman Tom Wheeler.]
San Jose (CA) and AT&T announced a new project to outfit the city’s streetlights and public parks with public Wi-Fi routers and earthquake sensors. The city plans to outfit 550 streetlights with LED lights, and install 670 smart-lighting controllers, 15 digital infrastructure nodes and 100 Wi-Fi extenders from AT&T. San Jose already offers public Wi-Fi in some parts of its downtown, but the Wi-Fi extenders will improve public safety and expand access to internet in public parks.
Americans increasingly are moving away from cable and satellite pay-TV services and opting to stream online video offerings, data from National Telecommunication and Information Administration’s latest Internet Use Survey show. While most households still subscribe to cable or satellite television services, the survey shows the proportion of Internet users watching videos online has grown from 45 percent in 2013 to 70 percent in 2017. Internet-based video services typically provide on-demand streaming from a large content library, and are not dependent on the offerings made available by any particular cable or satellite provider. The shift away from pay-TV services crosses all age groups, but younger Internet users have consistently been much more likely to watch video online than their older counterparts. For example, 86 percent of Internet users between the ages of 15 and 24 watched video online in 2017, compared with just 40 percent of users ages 65 and older.
At a Senate Judiciary Committee hearing about data privacy and competition policy, GOP senators signaled they are divided over whether to pursue antitrust enforcement against the country's largest tech companies. Committee Chairman Lindsey Graham (R-SC) expressed concern that Google and Facebook "own 70 percent of digital advertising in the world," asking witnesses for potential "antitrust remedies" to apply to advertising practices. But he stopped short of calling for any specific actions. Sen Ted Cruz (R-TX) focused his remarks on the "size, power [and] market cap" of Google, calling the company "larger than Standard Oil was when it was broken up and larger than AT&T was when it was broken up." "There are many on this committee, including myself, concerned about potential anticompetitive conduct from Google," Sen Cruz said. Sen Marsha Blackburn (R-TN) echoed his sentiments, saying she is concerned "there are openings for market abuse and exploitation of consumer data and also for being able to use these platforms and then drive out competition."
Sen John Cornyn (R-TX) said he thinks "the discussion of breaking up a Google or breaking up a Facebook is not what we should be doing." He called for giving users "more information" about how the companies use their data rather than imposing stringent regulations on how they operate. "[Users] can vote with your feet," Sen Cornyn said. "You can either break them up by no longer interacting with them or you can build them up because you’re comfortable with their … standards."
Communications Workers of America: AT&T outclassed Verizon in hurricane response, and it wasn’t close
After Hurricane Michael wreaked havoc on Florida in 2018, AT&T restored wireless service more quickly than Verizon because it relied on well-trained employees while Verizon instead used contractors that "did not have the proper credentials," according to the Communications Workers of America, a union that represents workers from both telecoms. The Federal Communications Commission recently found that carriers' mistakes prolonged outages caused by the hurricane. Many customers had to go without cellular service for more than a week. It's not surprising for a union to argue that union workers are preferable to contractors, of course, but it seems clear that AT&T did a better job than Verizon after the storm.
The FCC's Hurricane Michael investigation found that carriers failed to follow their own previous voluntary roaming commitments, unnecessarily prolonging outages. Despite that, the FCC is still relying entirely on voluntary measures to prevent recurrences. The CWA argues that the industry's voluntary commitments aren't enough. In addition to proposed pre-credentialing requirements, the union said that permitting agencies "should require that lead companies identify their subcontractors when applying for work permits."
In our latest Annual Report to Congress, the First Responder Network Authority (FirstNet Authority) outlines the significant progress made in fiscal year (FY) 2018 to deliver on Congress’s vision of creating a truly nationwide, interoperable broadband public safety network. It was a landmark year for public safety, as the FirstNet network deployment began ahead of schedule following the decisions of all US states and territories and the District of Columbia to participate in the deployment of the nationwide public safety broadband network. Today, public safety entities throughout the nation are benefitting from the power of the network as they respond to emergencies and in their daily operations. This includes more than 7,250 agencies using more than 600,000 connections on the FirstNet network, and over 100 devices approved and certified for use on the FirstNet network. The FirstNet Authority worked with jurisdictions and organizations across the country to educate first responders about the benefits of broadband for public safety and the ways it is changing vital public safety communications.
When Verizon throttled firefighters during last summer’s deadly wildfires, the FCC did nothing to help. Without net neutrality rules in place, the agency’s hands were tied and the firefighters were forced to go to the media to plea for help. This is outrageous. We’re heading into another wildfire season, and nothing has changed. Net neutrality hasn’t been restored, and the FCC still lacks the authority to intervene when telecom companies abandon our nation’s first responders. We need Congress to pass the Save the Internet Act. When disaster strikes, firefighters should be fighting flames, not their internet provider.
In swaths of rural America, along roads where there are just a few farms or homes within a mile-long stretch, customers are so few that the likes of AT&T and T-Mobile don’t bother to build cell towers for coverage. The only operators providing wireless access are small carriers, many of which can’t afford equipment from suppliers such as Ericsson and Nokia and instead rely on cheaper network infrastructure from Huawei Technologies and other Chinese companies. Rural broadband carriers could be forced to rip out and replace entire networks because they wouldn’t be able to import spare parts or software updates to maintain infrastructure, said Roger Entner, a telecom analyst at Recon Analytics. “If something breaks, what are you going to tell your customer? ‘I’m sorry you have an outage. We don’t know when we are going to fix it because it’s Huawei equipment. Until then, sorry. No internet for you,’ ” Entner said. “You don’t want to tell that to a customer.”
“Small carriers face a constant uphill battle both in terms of limited vendors who will supply to us … compounded by the regulatory challenges we’re up against,” said John Nettles, president of Pine Belt Communications, a small telecommunications company in Alabama that relies on the Chinese company ZTE for its 4G network. “Sometimes it feels like the cards are really stacked against us.” Nettles estimates that replacing Pine Belt’s network would cost $5 million to $10 million. And downtime from installing new equipment would probably cause Pine Belt to forgo $1 million to $3 million in roaming fees.
The Department of Commerce's Bureau of Industry and Security (BIS) amends the Export Administration Regulations (EAR) by adding Huawei Technologies Co., Ltd. (Huawei) to the Entity List. The US Government has determined that there is reasonable cause to believe that Huawei has been involved in activities contrary to the national security or foreign policy interests of the United States. BIS is also adding non-US affiliates of Huawei to the Entity List because those affiliates pose a significant risk of involvement in activities contrary to the national security or foreign policy interests of the United States. Huawei will be listed on the Entity List under the destination of China. This final rule also adds to the Entity List sixty-eight non-US affiliates of Huawei located in twenty-six destinations: Belgium, Bolivia, Brazil, Burma, Canada, Chile, China, Egypt, Germany, Hong Kong, Jamaica, Japan, Jordan, Lebanon, Madagascar, Netherlands, Oman, Pakistan, Paraguay, Qatar, Singapore, Sri Lanka, Switzerland, Taiwan, United Kingdom, and Vietnam.
Commerce is also granting a handful of temporary exceptions to an export blacklist against Huawei, giving some suppliers and customers a 90-day reprieve from tough trade penalties.
Among the mega-corporations that surveil you, your cellphone carrier has always been one of the keenest monitors, in constant contact with the one small device you keep on you at almost every moment. A confidential Facebook document shows that the social network courts carriers, along with phone makers — some 100 different companies in 50 countries — by offering the use of even more surveillance data, pulled straight from your smartphone by Facebook itself. Offered to select Facebook partners, the data includes not just technical information about Facebook members’ devices and use of Wi-Fi and cellular networks, but also their past locations, interests, and even their social groups. This data is sourced not just from the company’s main iOS and Android apps, but from Instagram and Messenger as well. The data has been used by Facebook partners to assess their standing against competitors, including customers lost to and won from them, but also for more controversial uses like racially targeted ads. Some experts are particularly alarmed that Facebook has marketed the use of the information — and appears to have helped directly facilitate its use, along with other Facebook data — for the purpose of screening customers on the basis of likely creditworthiness. Such use could potentially run afoul of federal law, which tightly governs credit assessments.
The Limitations of Poor Broadband Internet Access for Telemedicine Use in Rural America: An Observational Study
Fewer than 10% of US physicians practice in rural communities, where 25% of Americans live. Yet, rural Americans may need more health care as they become increasingly older and sicker relative to their urban counterparts. Telemedicine has been proposed as a solution to improve access to care. Federal and state policymakers have enacted policies to expand telemedicine use among publicly and commercially insured beneficiaries. However, whether Americans with the poorest access to care have the necessary broadband Internet capability to fully benefit from telemedicine is unknown.
President Donald Trump’s re-election campaign has spent far more than any single Democratic presidential candidate on Facebook advertising, reprising a strategy that was central to his 2016 victory. Since entering the race late in April, former Vice President Joe Biden has pumped more than $1 million into Facebook ads, outspending President Trump’s campaign for three of the past four weeks. Much of President Trump’s spending on Facebook advertising in recent weeks has gone toward ads that have been seen by older Americans, particularly women 55 and older. Many of the Trump campaign’s ads on Facebook are designed to get users to provide their contact information and expand the size of the campaign’s already enormous list of supporters. Others solicit donations or peddle Trump merchandise. “Facebook ads are a really valuable source for building your email list, and the more emails you have on your list, the more money you’re going to raise online,” said Eric Wilson, a Republican digital strategist. “There’s a direct through line to resources for the campaign.”
The Agency for Global Media is supposed to broadcast objective Spanish-language news programs into Cuba, but fails to meet basic standards of journalistic fairness and let an anchor describe Trump administration officials as the “dream team” for Cuba policy, according to an independent review. The review of Radio and Television Martí content, conducted by Spanish-speaking academics and former journalists, found the news organization routinely allows “almost any criticism of the Cuban government and its leaders” on the air. The effect, the report concluded, is that the station has sometimes resembled anti-communist propaganda and has failed to be a broker of fair and unbiased broadcast journalism, as is mandated by Congress. CEO John Lansing said the review did not find that the biased coverage had been directed by any political appointee of the Trump administration. Rather, he said, the failures flow from a “broken culture” at Martí, which has relied on Cuban dissidents as on-air personalities and on a small group of anti-communist organizations as sources for some content.
President Donald Trump has a penchant for ganging up on the "mainstream media," but lately his attacks have spread to ganging up on any information gatekeeper — from Big Tech platforms to newscasters on his favorite network. His ire lately has turned toward Sunday political shows, specifically. Last weekend he tweeted multiple times about the "Fake News Sunday Political Shows," even calling out Fox's own Chris Wallace for interviewing Mayor Pete Buttigieg. And, the White House launched a new tool recently that will allow any US citizen to submit a complaint if they think they were unfairly censored on social media platforms. The administration has pushed to undermine key White House press traditions that are meant to bring more information to the public, such as not holding a press briefing in weeks and taking away press passes from journalists. CNN's Oliver Darcy says part of the strategy is to make Americans in the middle of the country think that they're under attack by elitist institutions. "They're out to censor your ideas, you're under attack, and they're using that, effectively, fear mongering."
Qualcomm unlawfully suppressed competition in the market for cellphone chips and used its dominant position to exact excessive licensing fees, a federal judge ruled in a decision that could challenge the company’s business model and shake up the smartphone industry. US District Judge Lucy Koh sided sided with the Federal Trade Commission, which brought an antitrust lawsuit against Qualcomm in January 2017. Judge Koh found that Qualcomm violated antitrust law, charging unreasonably high royalties for its patents and eliminating rivals. She challenged its practice of collecting billions of dollars by charging royalties on a percentage of a smartphone’s price.
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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