Daily Digest 3/23/2018 (I Give You the Omnibus)

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Omnibus Spending Bill

Congress Approves $1.3 Trillion Spending Bill, Averting a Shutdown

Congress gave swift approval to a $1.3 trillion spending bill that will keep the federal government open through September but broadly defies the Trump administration’s wishes to reshape it. The House voted 256 to 167 to approve the bill less than 24 hours after the spending plan, which stretched 2,232 pages, had been unveiled. The Senate voted 65 to 32 to approve the bill around 12:30 am on March 23. The spending bill provides big increases to the military and to domestic programs — and clearly rebuffs the Trump administration’s efforts to sharply scale back the reach and scope of the federal government. The bill funds the government for the 2018 fiscal year, which began Oct. 1 and is already almost halfway over. Congress paved the way for this week’s legislation with a two-year budget deal last month that raised strict limits on military and domestic spending by about $140 billion. Programs like the National Endowment for the Arts and the Great Lakes Restoration Initiative, far from being eliminated, were spared any reductions. Not only did the administration’s request for deep cuts to the National Institutes of Health go nowhere, but Congress gave the agency an additional $3 billion. As November’s midterm elections loom, the spending bill allows lawmakers from both parties to go home and claim success on a wide range of issues, including beefing up the military and providing much-needed funding for priorities like battling the opioid crisis and rebuilding crumbling infrastructure.

Legislation to reauthorize the Federal Communications Commission, boost mobile broadband, and provide additional funds, as needed, for broadcasters' moves to new spectrum in the post-incentive auction repack has been included in the must-pass omnibus spending bill, which must pass by March 23 to avoid another government shutdown. The RAY BAUM Act (which incorporated Sen. John Thune's MOBILE NOW Act) that made it onto the bill differs slightly from the one that passed the House, according to a Hill source. 

Congressional Spending Bill Allocates $600 Million in New Rural Broadband Funding

New rural broadband funding is included in the $1.3 trillion congressional omnibus bill. The bill calls for an additional $600 million to be distributed through the Rural Utilities Service (RUS). The funding authorizes the Secretary of Agriculture to create a pilot program within RUS that distributes the new funding in the form of grants and loans. There are details to be worked out, but the authorization calls for “expedited” delivery of the program. A few conditions were mandated by the funding bill. They include:

  • Ninety percent of the households served by any project funded through this program must be unserved or underserved and can’t currently have 10/1 Mbps broadband access
  • Any entity receiving funds from the program is prohibited from overbuilding an existing RUS borrower
  • No more than 4% of funds received through the program can be used towards administrative costs

Omnibus bill contains CLOUD Act, a win for tech and law enforcement

The omnibus funding bill includes the Clarifying Lawful Overseas Use of Data [CLOUD] Act, which provides a legal framework for law enforcement to request data from overseas servers. The CLOUD Act provides a framework for reciprocal treaties for nations to request data from computers located within each other's borders. It also provides a mechanism for a Microsoft to take a law enforcement demand to court if it would force them to violate another country's rules. But when neither apply, law enforcement will be able to demand files in accordance with US law.

via Axios
News From the FCC Meeting

FCC Acts To Facilitate Deployment Of 5G And Wireless Broadband Infrastructure

The Federal Communications Commission adopted new rules streamlining the wireless infrastructure siting review process to facilitate the deployment of next-generation wireless facilities. The Order focuses on ensuring the FCC’s rules properly address the differences between large and small wireless facilities, and clarifies the treatment of small cell deployments. Specifically, the Order:

  • Excludes small wireless facilities deployed on non-Tribal lands from National Historic Preservation Act (NHPA) and National Environmental Policy Act (NEPA) review, concluding that these facilities are not “undertakings” or “major federal actions.” Small wireless facilities deployments continue to be subject to currently applicable state and local government approval requirements.
  • Clarifies and makes improvements to the process for Tribal participation in Section 106 historic preservation reviews for large wireless facilities where NHPA/NEPA review is still required.
  • Removes the requirement that applicants file Environmental Assessments solely due to the location of a proposed facility in a floodplain, as long as certain conditions are met.
  • Establishes timeframes for the FCC to act on Environmental Assessments.

FCC To Examine Ways To Improve 911 Call Routing

The Federal Communications Commission began an examination of how to more quickly route wireless 911 calls to the proper 911 call center, which could result in faster response times during emergencies. In a Notice of Inquiry, the FCC seeks comment on the extent of “misrouted” wireless 911 calls and approaches to avoid such delays, including the feasibility of routing 911 calls based on the location of the caller as opposed to the location of the cell tower that handles that call. The FCC noted that recent technological advances suggest that in many situations it is now possible to route 911 calls to the correct call center based on information about the caller’s location. Among other questions, the Notice of Inquiry invites comment on how the FCC can facilitate and promote location-based routing improvements.

FCC Seeks To Expand Use Of and Investment In 4.9 Ghz Band

The Federal Communications Commission proposed action to promote more flexible and intensive use of the 4.9 GHz band, a segment of spectrum designated for public safety communications. In a Sixth Further Notice of Proposed Rulemaking, the FCC seeks comment on proposals, technical in nature, to encourage greater use of and investment in this public safety band, drawing on input from the public safety community and other potential users. The FCC’s goal is to promote increased public safety use of the band and protect users from harmful interference while opening the spectrum to additional uses that will encourage a more robust market for equipment and greater innovation. The FCC seeks comment on whether an appropriate sharing mechanism could encourage more opportunistic use of the band while ensuring the priority, integrity, and security of public safety operations.

FCC Improves Rules For Wireless Signal Boosters

The Federal Communications Commission took steps to provide increased flexibility in the use of consumer signal boosters and proposed additional actions to further enhance the usefulness and effectiveness of these boosters. The rules  eliminate the current personal use restriction on provider-specific boosters so that businesses, public safety entities, educational institutions, and other enterprise users and their customers can also benefit from the use of boosters. The FCC also adopted a Further Notice of Proposed Rulemaking to explore ways to allow additional flexibility in the use of consumer signal boosters, including seeking input on removing unnecessary barriers to embedding boosters within vehicles. The FNPRM proposes to eliminate the personal use restriction on wideband boosters and to authorize non-subscribers to operate both types of consumer signal boosters, and seeks comment on whether to expand consumer signal booster operations to additional spectrum bands. Consumer signal boosters are devices that extend and improve wireless service without special engineering or professional installation. The boosters are designed to be used “out of the box” to improve wireless coverage within a limited area such as a home, boat, office, or recreational vehicle. Boosters can be “wideband,” i.e., able to operate on the frequencies and in the market areas of multiple licensees, or “provider-specific,” i.e., operating only on the frequencies and in the market areas of the licensee(s) specified during the certification of the device.

FCC Proposes To Streamline Reauthorization Process For Television Satellite Stations

The Federal Communications Commission adopted a Notice of Proposed Rulemaking proposing to streamline the process for reauthorizing television satellite stations when they are assigned or transferred in combination with their previously-approved parent station.

FCC Proposes Action, Seeks Input To Address Robocalls To Reassigned Phone Numbers

The Federal Communications Commission adopted a proposal to move forward in an effort to reduce calls placed by businesses and other legitimate callers to numbers that are no longer assigned to the consumers who consented to receive those calls. The FCC is proposing that one or more databases be made available to give businesses the information they need to avoid making such calls, and thus reduce the number of unwanted calls to reassigned numbers. The Second Further Notice of Proposed Rulemaking  proposes and seeks comment on ways to address this reassigned numbers problem. Specifically, the Further Notice:

  • Proposes to ensure that one or more databases are available to provide callers with the comprehensive and timely information they need to avoid calling reassigned numbers.
  • Seeks comment on the information that callers who choose to use a reassigned numbers database need to avoid calling a reassigned number.  Seeks feedback on three alternative ideas for service providers to report that information: (1) requiring service providers to report reassigned number information to a single, FCC-designated database; (2) requiring service providers to report that information to one or more commercial data aggregators; or (3) allowing service providers to report that information to commercial data aggregators on a voluntary basis.
  • Seeks comment on whether and, if so, how the Commission should adopt a safe harbor from liability under the Telephone Consumer Protection Act for those callers that choose to use a reassigned numbers database.
Broadband/Internet

Internet Association Files Motion To Intervene In Net Neutrality Repeal Case

[Press release] Internet Association filed a motion for leave to intervene in the federal court case against the Federal Communications Commission (FCC) challenging the repeal of strong net neutrality protections. The filing is another step in a long line of legal, policy, and advocacy steps that IA and its member companies have taken to preserve net neutrality protections. 

IA’s motion focuses on three key areas:

  • The removal of rules against blocking, throttling, and paid prioritization distort competition and makes it harder for consumers to reach content – especially when so many Americans lack any choice for their ISP. From the filing:
    • “Without these legal protections, internet companies and consumers will have no effective legal recourse against broadband providers that distort competition and impede communication by preventing or discouraging consumers from reaching the online content of their choice. This is particularly problematic given that nearly half of Americans have no choice of wireline provider for high-speed broadband service.”
  • The removal of well-established, bright line net neutrality rules harms internet companies’ ability to reach customers across the country. From the filing:
    • “To attract investment and growth, online content providers (such as many of the Internet Association’s members) need assurance of a baseline level of nondiscriminatory treatment by all internet service providers, so they can develop, market, and offer content and services across the country regardless of a potential customer’s choice of broadband provider. The Commission’s Order has eliminated the clear and predictable ex ante rules that supported such investment and innovation.”
  • The FCC’s new rules harm future growth and investment in the internet ecosystem. From the filing:
    • “Today, the internet contributes more than 6 percent of U.S. GDP, over 3 million direct American jobs, and nearly 24 million additional online income opportunities in every state. By eliminating the net neutrality protections against harmful broadband provider conduct, the Commission’s Order breaks the cycle of innovation and investment that has allowed the Internet Association’s members to bring innovation and choice to consumers.”

Forget Millennials, the Internet’s Most Wanted Users Are Older—and Poorer

The Chinese internet’s race to go low: lower income, lower-tier cities and lower internet-service penetration. China’s relatively young internet industry is facing a mature-market problem: User growth for popular online services such as instant messaging, search, online news and video has fallen to single digits. Online population growth has hovered around 5% to 6% annually since 2014, which is only slightly higher than in mature economies. Unlike in many developed markets, a vast number of Chinese are unconnected. As they slowly come online, they’re creating a sizable market that companies can tap into—if they can figure out how.

Future uncertain for Kentucky broadband network

Frustrated with repeated delays costing taxpayers millions of dollars, the Kentucky Senate has voted to effectively end a project that would bring high-speed internet capability to one of the poorest states in the country. But officials in Gov. Matt Bevin's administration warn it would likely cost more to kill the project than it would to finish it. That's because the state could be responsible for paying $286 million to pay off a loan to Macquarie Capital, the Australian-based venture capital firm that along with its partners has a contract to install a network of more than 3,000 miles of fiber optic cables touching all of Kentucky's 120 counties.

Ownership

AT&T wants to buy Time Warner to 'weaponize' its content, government says at start of antitrust trial

The biggest US antitrust case of this century kicked into high gear as a government lawyer warned that AT&T wants to buy media giant Time Warner to "weaponize" its must-have content — a move that would raise prices for consumers and hinder innovation. AT&T's added leverage over pay-TV competitors to withhold content from some of the most valuable assets in entertainment — including HBO, CNN, TBS, TNT and Warner Bros., Hollywood's largest TV and film studio — would cause prices to rise by more than $400 million a year for Americans, said Justice Department lawyer Craig Conrath. AT&T also would be able to use the leverage to hinder the growth of online competitors, such as Google Inc.'s YouTube TV and Dish Network's Sling TV, Conrath said as the antitrust showdown began, courtroom after two days of sparring over evidence. AT&T's lead attorney, Daniel Petrocelli, strongly disputed what he called "preposterous" government allegations in his opening arguments, saying consumer prices would go down and not up because of cost efficiencies and higher advertising revenue generated by combining the telecommunications giant's subscriber information with new data about viewers of Time Warner programming. Online rivals such as Google and Amazon have "radically transformed" the media industry, and AT&T is trying to bulk up to compete, Petrocelli said. The Justice Department's case doesn't recognize that, he said.

Content

How a Controversial New Sex-Trafficking Law Will Change The Web

Opponents fear that the Stop Enabling Online Sex Trafficking Act messes with a key ground rule that has allowed the internet to flourish. “Section 230 we’ve been saying for a long time is responsible for creating the modern internet that we know and love—not to say that the current Internet doesn’t have problems,” says India McKinney of the Electronic Frontier Foundation. But, she says, the law provided the “the legal buffer that was needed to create these online communications platforms.” The bill will create an exception Section 230 for enforcing federal and state criminal and civil law related to sex trafficking if a website operator “knowingly” assists, supports, or facilitates sex trafficking. Opponents say the bill will change the way outside content is moderated on the internet, but they don’t agree on how. Some say the “knowingly” standard will push tech companies to stop all moderation efforts for fear of finding something and being held liable. Other say the bill will result in extreme censorship as companies scour their platforms for any content related to sex trafficking, harming sex workers in the process.

via Wired
Privacy

Ex-regulators say Facebook's steps won't stop federal investigations

Former Federal Trade Commission consumer protection enforcers say Facebook's response to the Cambridge Analytica scandal won't be enough to keep federal investigators at bay. "Just because they make changes moving forward doesn’t mean they can’t be investigated or sued for what they did before," said Jessica Rich, who stepped down as the head of the FTC's Consumer Protection Bureau in 2017. "No, these changes are salutary, helpful and long overdue, but I don’t think that they will deter the FTC from imposing a very substantial civil penalty on Facebook should the Commission find, as I expect it will, that Facebook violated the consent decree with the FTC," said David Vladeck, who led the Bureau when Facebook signed an agreement with the FTC. Rich is bullish, too, that something comes of the FTC's investigation. “Based on the multiple potential legal theories here for pursuing Facebook, I would put the odds high that there is some enforcement action that occurs by the FTC," she said. "And I would put the odds at virtually 100 percent that between the states and the European countries there’s some action against Facebook for this incident and the underlying practices that it reveals.”

via Axios

Why Facebook users’ data obtained by Cambridge Analytica has probably spun far out of reach

The data on millions of Facebook users that a firm wrongfully swiped from the social network probably has spread to other groups, databases and the dark Web, experts said, making Facebook’s pledge to safeguard its users’ privacyhard to enforce. Paul-Olivier Dehaye, a privacy expert and co-founder of PersonalData.IO suspects the data has already proliferated far beyond Cambridge Analytica’s reach. “It is the whole nature of this ecosystem,” Dehaye said. “This data travels. And once it has spread, there is no way to get it back.” Frank Pasquale, a professor at the University of Maryland who specializes in algorithms and tech ethics, called this “the runaway data problem,” and said there is no way to return the genie to the bottle when it comes to securing data that has been released. Location and demographic information, which was taken from Facebook, can often be used to tie someone to other data points where the identity was previously unclear.

What Would Regulating Facebook Look Like?

What would it look like if Congress gave the Federal Trade Commission better tools to address online privacy? The most recent high-profile model comes from the European Union, where General Data Protection Regulation becomes the law of the land on May 25. GDPR focuses on ensuring that people who use online services know not only exactly what data those companies will take, but how they put it to use. One danger of an overly prescribed law is that technological solutions can outpace those mandates. 

via Wired
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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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