Friday, July 2, 2021
Headlines Daily Digest
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Lawmakers Introduce Legislation to Connect SNAP Recipients to Internet
Lawmakers and industry groups disagree over plans for broadband funding
Digital Inclusion
Broadband Infrastructure
Ownership
Platforms/Social Media
Health
Policymakers
International
Digital Inclusion
The Federal Communications Commission released a breakdown of its enrollment numbers for the Emergency Broadband Benefit (EBB) program. Overall, the FCC figures showed 3.08 million households were signed up for benefits as of June 27, with 75,880 of these on Tribal land. That figure was up from the 2.3 million the FCC touted on June 7. Approximately $34.6 million of the $3.2 billion in available funding has been distributed thus far, with the vast majority ($34.3 million) spent on monthly broadband support and $311,873 spent on connected device purchases. For states, California led the way with the most households signed up, followed by Texas, Ohio, New York, and Florida rounding out the top five. The agency for the first time also offered deeper regional detail using zip code prefixes, with this data showing the highest enrollment in San Juan (PR), Los Angeles, Philadelphia (PA), Las Vegas, and Cleveland (OH).
Reps Elaine Luria (D-VA) and John Katko (R-NY) introduced the Ensuring Phone and Internet Access for SNAP Recipients Act of 2021 (H.R.4275). This bipartisan bill would lower the cost of phone and internet access for households that benefit from the Supplemental Nutrition Assistance Program (SNAP). SNAP recipients automatically qualify for the Federal Communications Commission’s Lifeline Program, which offers discounted phone and internet service. The proposed legislation would require the FCC and US Department of Agriculture to survey SNAP recipients to learn if they are enrolled in the Lifeline Program. If SNAP recipients are not enrolled, the survey would encourage their participation. This survey would present a five-year projection on enrollment and would show how the FCC can improve its Lifeline Program’s outreach efforts.
Congress's record $65 billion for broadband infrastructure funding has the potential to make the White House's goal of connecting all Americans a reality—unless it gets mired in squabbling. The way the money will be divided up is still very much in flux as the Senate considers how to turn the framework into legislation. Lawmakers like Sen Angus King (I-ME)—who introduced the BRIDGE Act with Sens Rob Portman (R-OH) and Michael Bennet (D-CO)—want $40 billion to go to the states to use for broadband. Industry groups such as USTelectom and NCTA - The Internet and Television Association want to target funding to areas without broadband and create a permanent broadband subsidy program to help consumers afford service. A key question is how policymakers will address the affordability and adoption issues at play in the digital divide; how and where the billions of dollars are spent could be the difference between success and failure in achieving universal broadband access.
Ownership
Federal Trade Commission expands antitrust powers in Chair Lina Khan’s first open proceeding
The Federal Trade Commission passed a pair of pivotal measures expanding its power to regulate anti-competitive business practices, setting the stage for a more aggressive enforcement approach from the embattled agency. In the most aggressive effort, the commission voted to rescind a 2015 “Statement of Enforcement Principles” that restricted the FTC Act’s prescriptions on “unfair methods of competition” to explicit violations of existing antitrust law (specifically the Sherman and Clayton Acts). The vote proceeded along party lines, passing 3-2 with Democrats in the majority. “In practice, the 2015 statement has doubled down on the agency’s longstanding failure to investigate and pursue unfair methods of competition,” said FTC Chairwoman Khan. Without that restriction, the FTC will be free to pursue lawsuits against misconduct that might not violate classical antitrust law.
In another 3-2 vote, the FTC moved to simplify the rulemaking process for “prohibiting unfair or deceptive acts or practices.” Introduced by Commissioner Rebecca Kelly Slaughter, the changes are broadly procedural, lifting a number of self-imposed bureaucratic restrictions on the commission, allowing it to respond more efficiently to perceived misconduct. A third 3-2 vote passed a series of resolutions to streamline FTC investigations, including enabling individual commissioners to launch staff investigations into specific industries and conduct. Chairwoman Khan said she believed there were a number of industries where such an investigation would be appropriate, “including technology platforms, healthcare, and pharmaceuticals.”
Over the past four or five years, scholars, politicians, and public advocates have begun to push a new idea of what antitrust policy should be, arguing that we need to move away from a narrow focus on consumer welfare—which in practice has usually meant a focus on prices—toward consideration of a much wider range of possible harms from companies’ exercise of market power: damage to suppliers, workers, competitors, customer choice, and even the political system as a whole. They’ve done so, not surprisingly, with Apple, Amazon, Facebook, and Alphabet/Google (the Big Four) squarely in mind. But what exactly would reining in Big Tech’s power look like? Short answer: It depends very much on which company you’re going after. Apple wouldn’t seem to have that much to worry about from increasing antitrust pressures. Some argue that Amazon should be required to spin off Marketplace, while others have suggested that tough regulations be imposed on how it manages the site. Under the new antitrust model, Google’s sheer reach makes it a good target. Facebook's lack of transparency about the way it uses customer data has made it notorious.
The Federal Communications Commission is still reviewing Verizon’s proposed purchase of TracFone Wireless from América Móvil. Verizon CEO of the Consumer Group, Ronan Dunne, and TracFone CEO, Eduardo Diaz Corona, met with Acting FCC Chairwoman Jessica Rosenworcel to try and convince her that the transaction is in the public interest. Their main argument is that a combined Verizon/TracFone will introduce a third facilities-based provider in the prepaid segment to compete against T-Mobile’s Metro and AT&T’s Cricket. An obstacle for Verizon is its lack of a commitment to the FCC's Lifeline Program; while TracFone is a big provider of Lifeline services, Verizon has largely avoided participating in the program to date. However, Dunne said Verizon is firmly committed to TracFone’s Lifeline business and will continue to offer TracFone’s current Lifeline-supported services. The CEO also said that within six months after the transaction closes, Verizon will make available a service plan to Lifeline and other prepaid customers through TracFone that includes 5G service.
US broadband provider WideOpenWest (WOW!) inked a pair of deals to sell off five service areas for a combined $1.79 billion. WOW!’s move includes two separate transactions: a $1.13 billion deal with Atlantic Broadband covering its Cleveland and Columbus (OH) markets and a $661 million sale of its Chicago (IL), Evansville, (IN), and Anne Arundel (MD) service areas to Astound Broadband. The deals are expected to close in the second half of 2021. CEO Teresa Elder stated that proceeds from the transactions will allow the company to reduce debt, ramp edge outs, focus on improving penetration and invest in new greenfield opportunities. WOW! currently has a hybrid fiber coax architecture throughout most of its network. Elder said when looking at greenfield builds, the company chooses the technology that is “most economic and sets us up well for the future.” Looking ahead, she noted “we may be looking at more fiber just because of the economics of it now.”
On June 4, 2021, the Federal Communications Commission's Media Bureau released an order, consistent with the U.S. Supreme Court's decision in FCC v. Prometheus Radio Project, reinstating the rule changes previously adopted by the FCC in its media ownership proceedings but then vacated and remanded by the US Third Circuit Court of Appeals in 2019.3 As such, the Newspaper/Broadcast Cross-Ownership Rule, the Radio/Television Cross-Ownership Rule, and the Television Joint Sales Agreement Attribution Rule were eliminated, and the Local Television Ownership Rule and Local Radio Ownership Rule were reinstated as adopted in the Order on Reconsideration. In addition, the eligible entity standard and its application to regulatory measures as set forth in the 2016 Second Report and Order were reinstated. Finally, the regulatory measures adopted in the 2018 Incubator Order were reinstated. These changes became effective on June 30, 2021.
In addition, on June 4, 2021, the Media Bureau also released a Public Notice (MB Docket No. 18-349) seeking to update the record in the 2018 Quadrennial Review proceeding, in which the Commission has sought comment, pursuant to its obligation under Section 202(h) of the Telecommunications Act of 1996, on whether its media ownership rules remain “necessary in the public interest as the result of competition.” The deadline for filing comments is August 2, 2021, and the deadline for filing reply comments is August 30, 2021.
Democratic members of the House of Representatives have attacked a package of measures being promoted by members of the House Antitrust Subcommittee, as opposition builds to radical proposals that some hope could lead to the break-up of Big Tech. The rift shows how difficult it will be to enact a big shake-up of US antitrust laws, even as President Joe Biden considers signing his own executive order to strengthen regulators’ powers to promote competition in their sectors. The House Judiciary Committee last week passed six bills aimed at breaking the corporate power enjoyed by the likes of Google, Facebook, Amazon and Apple. The move is part of a broader push to enact the most significant change to US competition law in a generation, but industry lobbyists are targeting centrist Democrats and those from California in particular as they try to block the most radical measures. With 60 votes needed to beat a filibuster, lobbyists believe only the least contentious measures, such as a move to increase funding to competition regulators, stand a chance of passing.
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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