Ownership

Media coverage of the 2020 Democratic presidential campaigns began in earnest well over a year ago — but it is not providing citizens with the news and information we need in order to cast informed ballots. We are two former Federal Communications Commission chairmen who believe one critical issue the media is avoiding is … the media itself. The high level of consolidation and corporatization that exists in the industry today speaks to media’s lack of interest in addressing the current shortfall in our news and information.

Obviously, there's no bigger story this week than the possible impeachment of the 45th president of the United States. But if we still have your attention, here's some items of note we found this week. 1) Court Again Rejects FCC Attempt to Loosen Broadcast Ownership Rules. 2) Rebuilding Communications Infrastructure in Puerto Rico and the U.S. Virgin Islands 3) Defining the Digital Divide.

The Senate Antitrust Subcommittee heard from various parties on whether Big Tech companies have been allowed to become serial innovation killers, buying up tech start-up competitors before those competitors are large enough to raise red flags with regulators. A Federal Trade Commission witness said the agency was definitely retrospectively reviewing such "killer acqs" (acquisitions), and could break up or shake up already-merged companies if that is the appropriate structural remedy. 

The misconduct alleged today, if true, amounts to corporate malfeasance. A single company apparently misappropriated funds for nearly 10 percent of the entire Lifeline program. I am outraged. There is no credible way that the merger before us can proceed until this Lifeline investigation is resolved and responsible parties are held accountable.

The US broadband and media industries are increasingly becoming consolidated, deregulated and freed of accountability, with little attention either from policymakers or the media. While Mexico is moving forward -- having recently developed new institutions and regulations intended to promote competition and accountability in telecommunications and media, the US is moving backwards. Competition in broadband and media in the US is vanishing as a result of decisions, big and small, by the Trump Administration. 

“For more than twenty years," said Federal Communicatuions Commission Chairman Ajit Pai, "Congress has instructed the Federal Communications Commission to review its media ownership regulations and revise or repeal those rules that are no longer necessary. But for the last fifteen years, a majority of the same Third Circuit panel has taken that authority for themselves, blocking any attempt to modernize these regulations to match the obvious realities of the modern media marketplace.

The Third US Circuit Court of Appeals threw out changes to broadcast media ownership rules approved by the Federal Communications Commission in 2017, saying the agency should have looked more closely at potential impacts on minority ownership. The court  said it agreed with public-interest groups that “the Commission did not adequately consider the effect its sweeping rule changes will have on ownership of broadcast media by women and racial minorities.” The court will vacate and remand “the bulk of” the FCC’s actions over the last three years for further consideration by the agency.

Thought things are tough for the tech industry in Washington now? Building Democratic frustration with the industry could bring a bigger crackdown if the 2020 election puts the party back in control of the White House. Look no further than the Federal Trade Commission — and its two Democrats — to see those dynamics at play. In a series of unusually blunt dissents in recent cases involving Facebook and Google, FTC Commissioners Rohit Chopra and Rebecca Kelly Slaughter argued for much tougher financial penalties for companies that break their promises and abuse their users’ privacy.

Verizon Chairman and CEO Hans Vestberg said that the company is installing 1400 miles of fiber per month and that it will begin offering multi-access edge computing (MEC) in fourth quarter. Verizon fiber deployments are critical to supporting a mixture of services, Vestberg said. “One part of the whole intelligent edge network was that . . .