Tuesday, July 24, 2018
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In my previous post, I highlighted four reasons why the U.S needs a unified policy framework for an open Internet ecosystem: 1) lack of competition/incentive and the ability to discriminate; 2) collection of and control over personal data; 3) lack of transparency; and 4) inadequacy of current laws and enforcement. Many of these problems can be addressed with targeted legislative and regulatory interventions. Others require more research and investigation before the right policy prescriptions can be developed. The policy proposals I suggest can be placed in five categories: 1) regulatory oversight, 2) privacy, 3) competition, 4) access and affordability, and 5) transparency. Here I’ll address my recommendations for regulatory oversight and privacy and the other three categories in subsequent posts.
[Gigi B. Sohn is a Distinguished Fellow, Georgetown Law Institute for Technology Law & Policy and Benton Senior Fellow and Public Advocate]
[Speech] The primary focus of my remarks will be the primary focus of my chairmanship since day one: closing the digital divide in order to make sure everyone can benefit from the Internet revolution. To date, I’ve visited roughly 90 cities in 33 states in the US, driving more than 8,500 road miles
in some hard-working rental cars. What are some of the key lessons from this travel? One is that no matter what you do for a living or where you do it, broadband is critical. A second key lesson is that the communities that are the hardest to connect are also the places that have the most to gain from next-generation networks. The third takeaway is that the costs of being on the wrong side of the digital divide are high and getting higher. That brings me to the final subject I wanted to highlight: disaster response. We should learn from our experiences and develop best practices so that we’re all better prepared and more effective in responding to future disasters.
We may come from different countries, but we all share common bonds—bonds of geography and, more importantly, bonds of shared values. As your neighbor, I’m calling on all of us to work together to bring digital opportunity to all the people we are honored to serve.
[Speech] At my remarks during yesterday’s opening session, I talked about why we are all here: to help bring the benefits of communications technology to all the people we serve. Before taking questions from Chairman Wilkins and you in the audience, I’d like to talk briefly about how we are pursuing specific policies at the Federal Communications Commission to bring digital opportunity to the people of the United States. In particular, I’ll focus on infrastructure and spectrum.
The central focus of our infrastructure policy has been removing regulatory barriers that hold back private network investment. We believe, based on experience and logic, that promoting more investment will lead to more facilities-based competition. We are committed to working together toward international radio spectrum allocation and harmonization for next-generation terrestrial mobile and satellite services. This will help ensure that emerging technologies are promptly introduced into the marketplace, to the benefit of all citizens in our region.
[Speech] I want to talk about the secret to smart policies about smart cities. I can summarize my idea in one word. Learning.
A major tactic in the Federal Communications Commission’s effort to regulate cities is through its Broadband Deployment Advisory Committee (BDAC) process. The stated, and worthy, goals of the BDAC are to accelerate and broaden deployment of next-generation broadband networks and reduce the digital divide. However, the BDAC suffers from significant failures of design and execution. The failures are threefold. First, the BDAC did not have a balanced membership that could have lead to a real consensus between stakeholders. Second, the BDAC started from the false assumption that industry does not have the leverage to negotiate the deals it needs to make investments in new networks, an assumption the industry acknowledges is false. Third, BDAC did not understand how to use a negotiating process to create value for both sides, by focusing on how each can give up on something small to get something big. Instead, it primarily focused on forcing cities to give carriers what the carriers wanted.But underlying these three failures is a failure to learn anything.
We have a lot of work to do and a lot to learn to achieve the outcomes we desire. But I trust cities can do that learning in ways the FCC has shown itself incapable of doing.
[Blair Levin is the Executive Director of Gig.U. He also serves as a Non-resident Senior Fellow of the Metropolitan Policy Project of the Brookings Institute.]
The Rural Broadband Permitting Efficiency Act (HR 4824) would require the Bureau of Land Management (BLM) to establish a program to enhance the permitting process for broadband Internet projects in each of the agency’s field offices. The bill also would authorize BLM and the Forest Service to enter into agreements with states and tribes to allow those entities to carry out environmental reviews under the National Environmental Policy Act (NEPA) for broadband projects within existing rights-of-way on federal lands.
Using information provided by BLM, CBO estimates that establishing a program to enhance the permitting process for broadband projects in each of the agency’s 14 field offices would cost $400,000 in 2019. CBO also estimates that administering those programs would cost about $300,000 a year over the 2020-2023 period. Those amounts, totaling $1.6 million over the next five years, would pay BLM staff to develop and administer the programs. Any spending to cover those costs would be subject to the availability of appropriated funds. Because the bill would authorize BLM and the Forest Service to allow states and tribes to assume responsibility for completing analyses under NEPA, CBO estimates that implementing the bill could reduce the amount the agencies spend on those activities. However, CBO expects that any funds those agencies would have used for the analyses would instead be used for similar activities.
The Federal Communications Commission has released an additional $36 million annually for 175 small rural carriers that opted to transition to receive broadband Universal Service support based on the alternative Connect America cost model (A-CAM). In exchange, the A-CAM carriers have committed to more aggressive broadband deployment goals – although those goals are not as aggressive as those originally established for the A-CAM portion of the high-cost Universal Service program back in 2016. At that time, more carriers than expected opted to receive A-CAM support, driving the commission to reduce both funding and deployment commitments. Anticipations changed in March 2018, however, when the FCC voted to release an additional $360 million over a 10-year period to A-CAM carriers. As a July 23 FCC press release explains, the $360 million is based on an adding approximately $36 million annually to the A-CAM budget for the next 10 years.
[Commentary] The digital age and its applications has the potential to eliminate density and geographic proximity requirements, that were so critical during the industrial age. It is possible then, in the digital age, for a rural community to maintain its “rural” feel and continue to leverage its natural amenities while taking advantage of what only dense urban areas enjoyed last century. Things like access to funding (crowdfunding), worldwide markets (e-commerce), savvy employees (teleworkers) and real-time information; collaboration and innovation (videoconferencing and soon mixed reality); certain level of healthcare (telehealth); and educational opportunities (massive open online courses, online certifications).
So, what is in our way to achieve #Rural2pt0? For starters, ubiquitous ultra-fast internet connectivity. Another thing getting in the way to #Rural2pt0 are digital skills. A digital literate rural society is a must. Lastly and the most serious challenge, is that the traditional 20th century mindset still exists in rural communities. A change in mindset, that better understands the implications of the digital age, is a key ingredient for #Rural2pt0. Digital parity is not yet a reality and so the true decentralization effect remains to be felt. So, join the #Rural2pt0 movement and contribute your part to make sure digital parity (connectivity, skills, and mindset) is a reality sooner rather than later.
[Roberto Gallardo is assistant director of the Purdue Center for Regional Development and a senior fellow at the Center for Rural Strategies, which publishes the Daily Yonder.]
Watch for network neutrality arguments in future antitrust analysis of mergers, competition lawyers said. The Justice Department’s high-profile attempt to block AT&T from buying Time Warner didn’t address the possibility that the AT&T customers could see slowed internet traffic for some content. But that kind of argument could come up one day. The DOJ has looked at past merger cases on the grounds of its impact on open internet access said Ketan Jhaveri, a former trial lawyer at the DOJ’s Antitrust Division. “If net neutrality were to come up, it would come up in a merger of [internet service] providers,” he said, adding that those legal arguments are likely a long way off. Allegations that a merged AT&T-Time Warner could throttle streaming content from rival ISPs would have improved the government’s case that the merger would cause harm. “But they couldn’t do that,” said Blair Levin, a former chief of staff at the Federal Communications Commission in both the Obama and Clinton administrations. If the DOJ told a court that the combined AT&T-Time Warner would slow internet speeds for rival content services, it would have undermined the FCC’s successful push to undo net neutrality rules, Levin said.
A host of companies believe, rather than fiber optic cables, the better way to connect the estimated half of Earth’s population that’s still offline is to launch “constellations” of smaller satellites into low Earth orbit, around 100 to 1,250 miles above our planet. Facebook is officially one of them. Emails between the company and the Federal Communications Commission show that Facebook wants to launch Athena, its very own internet satellite, in early 2019. The new device is designed to “efficiently provide broadband access to unserved and underserved areas throughout the world,” according to an application the social network appears to have filed with the FCC under the name PointView Tech LLC. With the filing, Facebook joins Elon Musk’s SpaceX and Softbank-backed OneWeb, two well-funded organizations working on similar projects.
After being separated from their children at the border and detained in facilities scattered across the US, some migrant parents have to pay steep fees to speak with their children, a policy that a group of Democratic lawmakers have called "shameless" and "morally reprehensible." In a letter sent to US Immigration and Customs Enforcement, about 150 Democratic members of Congress argued that the practice of charging "exorbitant" prices to place phone calls from immigrant detention violates ICE's national standards. Detained immigrants are able to call specific lawyers and government help lines for free, according to the agency's telephone access standards. It also states that facilities should enable detainees to make direct or free calls to "immediate family or others for detainees in personal and family emergencies" and that detainees should have "equitable access to reasonably priced telephone services" — which the letter from Congress points out. For anyone else, detainees or the people they are contacting are responsible for the cost of the phone call.
Federal Communications Commission Chairman Ajit Pai phoned Sinclair executive vice president and general counsel Barry Faber July 18 to let the company know that just withdrawing the three TV station "sweetheart deal" sale applications was not going to head off an administrative hearing on the proposed Tribune merger. But Faber told Chairman Pai in a letter filed with the FCC that the company was not planning to cancel the deal the week of July 16, saying that would require board approval it did not have. Furthermore, Faber said Sinclair should not have to cancel the deal because it had never hidden or mischaracterized the structure of the deal. Sinclair tried to get Chairman Pai to delay the hearing, but the hearing designation order passed unanimously. The hearing looks certain unless Sinclair does decide to pull the plug on the deal. "I know that you told me yesterday that the withdrawal of these three applications would not prevent you moving forward with the [Hearing Designation Order]," Faber wrote, "but I am writing to ask you to reconsider that position (or at least delay it until you have an opportunity to more fully consider the situation," Faber wrote. Chairman Pai didn't delay the decision, and with the vote of FCC Commissioner Michael O'Rielly on July 18 making it unanimous, the deal was referred to the FCC's lone administrative law judge for an evidentiary hearing that could take upwards of a year.
The Federal Communication Commission’s surprise move to block Sinclair Broadcast Group’s $6.6 billion acquisition of Tribune Media came after the head of a rival conservative news outlet discussed his opposition to the deal with President Donald Trump. “I have discussed my opposition to the merger a few times with him,” Christopher Ruddy, founder and chief executive of Newsmax, said on July 18, referring to his longtime friend, President Trump. It is not known if President Trump ever discussed the deal with FCC Chairman Ajit Pai — who said he has “serious concerns” about the merger and would move to block it. Ruddy, who operates a right-leaning cable news network and website, has been a constant and outspoken critic of the Sinclair-Tribune deal.
On July 12, Newsmax’s lawyers at Boies Schiller Flexner filed papers with the FCC questioning Sinclair’s transparency — or lack thereof — in selling three key stations, including WGN, to less than an arm’s distance buyers, apparently. Four days later, on July 16, the FCC moved to block the deal — citing some of the same transparency issues highlighted in the Boies letter.
[Commentary] Talk about a curveball. Last week, Federal Communications Commission Chairman Pai struck a potentially fatal blow to a deal that President Donald Trump favored, the proposed merger of Sinclair Broadcasting and Tribune Media. If it had gone through, the deal would have had a major adverse impact on future election cycles, making Sinclair the king of the hill with unfettered capabilities to control political advertising and messages across all of its stations.
There was a lot riding on the Sinclair deal—economically and politically—and its sudden demise seems a bit too unnerving to me. It may be just as it seems. Sinclair may have just made a devastating miscalculation and Chiarman Pai simply could not let the deal go through. But there is a voice in my head that tells me to look down the road. Will the FCC change the audience cap to something higher than the present 39%--say 50%, as the media industry has strongly advocated? Will a chastened Sinclair try again? Will the inevitable forthcoming mergers use Sinclair as an object lesson on how NOT to do it, and, having learned that lesson, easily get FCC approval? I have an uneasy feeling because I don’t know if any of this will happen. But it easily could. And it will determine the fate of local television in the United States.
[Danilo Yanich is Professor of Urban Affairs & Public Policy at the University of Delaware whose research focuses on media consolidation, political ads, money, and local television news content.]
House Majority Whip Steve Scalise (R-LA) launched another effort at massive communications deregulation, one he has been pushing for most of a decade, so far without success. Rep Scalise has reintroduced a discussion draft of his Next Generation Television Marketplace Act, which repeals must-carry and retransmission consent rules and the compulsory license. That is the license that allows broadcasters to include nonlocal programming in their retransmission deals without having to secure individual rights from national network and syndication rightsholders. The bill would also "eliminate the government's role in defining the scope of programming exclusivity" and "codify the repeal of certain limitations imposed on local broadcasters that prevent them from adapting to today’s dynamic communications marketplace." Like previous incarnations, the bill also includes eliminating the network nonduplication and syndicated exclusivity rules, as well as broadcast ownership limits.
“Innovation tends to follow the path of least government resistance. For proof, look no further than the growth of online streaming services that are operating in a completely free market, while competing against other platforms that are regulated as if they were still monopolies from the 1990’s," said Rep Scalise. "My legislation will level the playing field so consumers can benefit from even more freedom in the video marketplace.”
There’s a lot of pieces that need to come together to get 5G networks to work on mobile devices — new standards need to be agreed on, new modems need to be developed, and new networking hardware for towers needs to be rolled out. But Qualcomm might have just cleared one of the major hurdles with the announcement of its new QTM052 mmWave antenna modules, the first that have been announced that will enable the high-speed swath of networking spectrum to work with mobile phones. That’s a big deal, because not all 5G is created equal. As Qualcomm’s own simulated test results from MWC earlier in 2018 showed, users will already get big jumps in speed with lower-bandwidth 5G solutions, but the truly impressive leap forward will come from the mmWave network. But in order for that to work, we first need viable mmWave hardware for phones, which isn’t easy. While the mmWave portion of the spectrum offers dramatically faster speeds, it also transmits at a much shorter range and is far more easily blocked by things like walls and even users’ hands held over their devices. But Qualcomm claims that its QTM052 antenna is the solution. It’s a tiny antenna array, roughly the size of a penny, that features four antennas that can (with the help of Qualcomm’s algorithms) accurately point toward the nearest 5G tower.
Newspaper layoffs have far from abated in the past year, and digital-native news outlets are also suffering losses. At least 36 percent of the largest newspapers across the United States – as well as at least 23 percent of the highest-traffic digital-native news outlets – experienced layoffs between January 2017 and April 2018, according to the Pew study. Among newspapers, those with the highest circulation were most likely to be affected. The analysis comes amid a series of highly publicized staff reductions by hedge fund companies that had acquired well-known newspapers, including The Denver Post, where employees publicly criticized the cuts made by the papers’ owners. Of the 110 daily newspapers in the analysis, 40 – or 36 perceny – were found to have gone through publicly reported layoffs during the 16-month study period, with at least 12 experiencing more than one round of layoffs. It is possible that even more occurred but remained under the radar of the search methods employed in this analysis.
The meeting lasted less than a minute. By the time it was over, reporters and editors at The NY Daily News had been told that the newsroom staff was being cut in half and that the editor in chief, Jim Rich, was out of a job. Grant Whitmore, an executive at Tronc, the media company that owns The News, presided over the meeting. About 50 members of the newspaper’s staff were in attendance. The new editor in chief is Robert York, currently the editor and publisher of The Morning Call, a Tronc-owned daily newspaper in Allentown (PA).
Since Tronc, which is based in Chicago, bought The News from the New York real estate developer and media mogul Mortimer B. Zuckerman in September 2017 — for a reported $1 — it has been examining its latest asset. In a memo sent to the paper’s employees minutes after the quick meeting, the company said that it had been working to transform the tabloid into a publication better suited to the digital age. “But we have not gone far enough,” the memo said. After noting the paper is grappling with “significant financial challenges,” the Tronc statement got down to the nitty-gritty: “We are reducing today the size of the editorial team by approximately 50 percent and refocusing much of our talent on breaking news — especially in areas of crime, civil justice and public responsibility.”
[Commentary] We need to move away from the arguments that the country should care about laid-off reporters or that the suits should be held to account. This can’t be about us. It has to be about why the country should care if local news goes away, which is the trajectory we now find ourselves on. What are the effects on a democracy if local news is no longer in the picture? How is my life as a New Yorker going to be worse now that the Daily News has been so terribly hobbled? If you’re in journalism and you can’t muster an answer to that question, you need to move on.
For the rest of us in this profession, it is the case we now must make, especially in the face of a national administration that has made it its business to question why journalism matters. What does it mean not to have local news in your town? Would it change where you live, how you raise your kids, where they go to school? It would if a local coach were abusing kids, and would have kept doing so if a newspaper hadn’t reported it. It would if money that was supposed to be going to city services was instead going to higher financing costs for government bonds, since no one was paying attention to the deals the city was cutting. It would if there were a spike in health viruses, because there wasn’t the news infrastructure to warn people to be safe. All of those examples are real. And it’s easy enough to add Daily News scoops to the list, something many of its fans, myself included, will be doing as they process this terrible day.
Our job at Columbia Journalism Review—and the job for all of us who care about the importance of the press to democracy—is to answer the foundational questions we face as a country. Our window for addressing them—and, crucially, in a way that resonates with readers—is in very real danger of closing entirely.
President Donald Trump used his Twitter account to make false and misleading attacks against The Washington Post and Amazon, the behemoth online retailer whose founder owns The Post. In the first of his tweets, President Trump said the “Amazon Washington Post has gone crazy against me ever since they lost the Internet Tax Case in the U.S. Supreme Court two months ago.” The president was apparently referring to a Supreme Court case decided in June that will allow state governments to compel online retailers beyond their borders to collect sales tax revenue from consumers.
Amazon, whose founder and chief executive Jeffrey P. Bezos owns The Post, does not collect taxes on third-party purchases. The Post and Amazon are independently operated. It’s not clear what Trump meant by “gone crazy against me,” though he was critical in a separate tweet July 23 of media coverage of his efforts to rid North Korea of nuclear weapons. The Post reported over the weekend that Trump has privately fumed about a lack of progress even as he has publicly touted his administration’s efforts.
In the early evening of July 9th, President Donald Trump stood in the gold draped East Room of the White House with a small group of senior advisers to rehearse his announcement of Judge Brett Kavanaugh as his nominee for the Supreme Court. President Trump stepped on and off the podium, riffing with his aides. While this was going on, Bill Shine, the former co-president of Fox News, was meticulously obsessing over the camera shot which looked out upon a red carpet, apparently. Hours before the announcement, Shine had gone to the East Room to test the lighting, apparently. He showed the president three different lighting options and Trump selected his favorite. President Trump has been frustrated that some of his previous appearances on camera have not had the production values of the prime time TV shows he spends so much time watching. Trump frequently complains to aides about the "terrible lighting," apparently.
As controversies have piled up for top tech companies, so have their lobbying bills. Tech firms continued to pour record sums of money into federal lobbying during the second quarter, new disclosures show, reflecting their defensive maneuvering on matters like consumer privacy, market competition and the treatment of political speech on social media. Facebook spent its largest single-quarter sum ever, $3.67 million, during a period that included CEO Mark Zuckerberg’s grilling in Congress over the company’s privacy lapses and the Cambridge Analytica data scandal. Like Facebook, Google battled questions this spring over its user privacy protections and perceived bias against conservatives on its YouTube platform. Its lobbying bill: a record $5.83 million. Amazon’s quarterly spending also ticked up to a record $3.47 million as the company faced scrutiny over its market power and, more recently, its sale of facial recognition software to law enforcement. President Donald Trump also has the company’s shipping contract with the U.S. Postal Service under the microscope as part of his postal reform task force.
More big spenders: Microsoft, whose presence in Washington goes back further than most other tech firms, paid out $2.64 million, its largest quarterly sum since late 2013. In recent months the company has come under fire for its contracting arrangements with U.S. immigration authorities amid uproar over the Trump administration’s highly criticized practice of family separation along the U.S.-Mexico border. Twitter, which continues to grapple with criticism over the spread of misinformation as well as its content moderation approach, doubled its typical quarterly sum at $320,000. The Internet Association, a trade group representing more than 40 of the industry’s players, shelled out $660,000, also more than double the amount it usually spends.
Merger land: T-Mobile and Sprint formally unveiled plans to combine in late April and immediately began selling their merger to both Capitol Hill and federal agencies. T-Mobile also tapped several lobbying shops in the first half of the year to help bolster its case. But all that hustle didn’t translate into more lobbying dollars in the second quarter, records show. T-Mobile spent $2.09 million and Sprint paid $800,000, figures consistent with their recent filings.
Other spenders: AT&T, which in June gained approval from a federal judge for its merger with Time Warner but is now battling an appeal from the Justice Department, spent $4.58 million. Comcast, which sought federal approval for its bid for the bulk of 21st Century Fox before ultimately waving the white flag, tallied $3.54 million. Other tech and telecom lobbying tallies included: Apple, $1.62 million; Charter Communications, $2.39 million; CTIA, $2.39 million; Entertainment Software Association, $1.64 million; IBM, $1.59 million; National Association of Broadcasters, $3.57 million; NCTA, $3.29 million; Oracle, $1.81 million; Qualcomm, $2 million; and Verizon, $2.95 million.
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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