Research

[Commentary] To shed light on the motivations of the tech elite, I and my co-authors at Stanford Graduate School of Business, David Broockman and Neil Malhotra, released the findings from a political survey of over 600 tech company founders. Our results revealed a group that was largely supportive of Democrats and redistribution through higher taxation. That is, they seemed to defy the stereotype of hyper-libertarian big business and the results were received with considerable confusion.

In this post, I’d like to show how these seemingly contradictory beliefs are unified (based on the data). All of the policies supported by the Valley make a lot more sense in the context of their core belief: a radical optimism in the future. “I tend to believe that most Silicon Valley people are very much long-term optimists,” said LinkedIn founder and Hillary Clinton supporter Reid Hoffman. “Could we have a bad 20 years? Absolutely. But if you’re working towards progress, your future will be better than your present.”

[Gregory Ferenstein is the editor of The Ferenstein Wire]

Black and Latino representation has declined in Silicon Valley, and although Asians are the most likely to be hired, they are the least likely to be promoted, according to a new study exposing persistent racial prejudice in the tech industry.

The research from not-for-profit organization Ascend Foundation, which examined official employment data from 2007 to 2015, suggests that people of color are widely marginalized and denied career opportunities in tech – and that the millennial generation is unlikely to crack the glass ceiling for minorities. “There have been no changes for Asians or any other minority over time – men or women,” said Buck Gee, the study’s co-author and an executive adviser to Ascend, a US-based research group that advocates for Asian representation in businesses. For some groups, he added, “It’s actually worse.”

While women and people of color are employed at tech companies in larger numbers than they used to be, their upward mobility at those companies has stagnated. From 2007 to 2015, white men consistently composed a higher share of executive roles than professional roles at tech companies, the study found. It’s the reverse for Asians, Hispanics and blacks, especially if they’re women.

Mobile-only users are usually perceived as a consequence of fixed-mobile substitution. This study uses a unique dataset based on a survey in France, combined with interviewee's telecommunications billing data, to reveal heterogeneous consumer preferences for fixed services.

With the same mixed logit model we estimate the willingness to pay (WTP) for fixed communications services and fixed-mobile relationship. Results show a very large heterogeneity of WTP for fixed services among consumers. In addition, we show that fixed and mobile data are complement for all consumers. Mobile-only consumers have a much lower but non-zero WTP, and higher price sensitivity compared to fixed-mobile consumers. Consequently, an increase in the fixed offer price would reduce the demand for fixed service. Heterogeneous preferences for fixed services constitute an alternative explanation for the existence of mobile-only users, despite the complementary nature of fixed and mobile broadband. Counter-factual simulations show that the share of mobile-only could also be driven by the way to subsidize mobile handset. For instance, making the handset subsidy only available to fixed-mobile quadruple play subscribers could reduce the share of mobile-only by half.

The most viable way to provide broadband internet service to under-served parts of Pipestone County (MN) is with a wireless system, and even that is not feasible without a grant. Those were the findings of a broadband internet study Pipestone County commissioned earlier in 2017 to find out what it would take to provide broadband access to the under-served parts of the county. Doug Dawson, President of CCG Consulting, and Mark Mrla, business unit manager with Finley Engineering, presented the results of the study Sept. 12 to the Pipestone County Board. The study examined three scenarios to bring broadband to 1,747 homes where it is not currently available: Build a complete fiber system; build a hybrid fiber and wireless system; or an all wireless system. An all-fiber system requiring 458 miles of fiber was estimated to cost $12,359,445, a hybrid system $5,327,253, and an all wireless system $1,002,809.

[Commentary] As the Federal Communications Commission takes up the issue of whether to reverse the Obama-era Open Internet Order, a key question consumers and policymakers alike are asking is: What difference do these rules make?

My research team has been studying one key element of the regulations – called "throttling," the practice of limiting download speeds – for several years, spanning a period both before the 2015 Open Internet Order was issued and after it took effect. Our findings reveal not only the state of internet openness before the Obama initiative but also the measurable results of the policy's effect. The methods we used and the tools we developed investigate how internet service providers manage your traffic and demonstrate how open the internet really is – or isn't – as a result of evolving internet service plans, as well as political and regulatory changes.

[David Choffnes is a researcher at Northeastern University]

Millions of households subscribe to cable, satellite, and telephone companies—known as multichannel video programming distributors (MVPDs)—for television, which is generally delivered via a set-top box attached to a television. Congress directed Federal Communications Commission to adopt regulations to assure a commercial market for devices to access MVPDs, and in February 2016, FCC proposed a rule intended to do so. Many industry stakeholders raised concerns about the proposal's potential effects, and FCC did not issue the proposed rule. This report examines: (1) the role of set-top boxes in accessing video programming content and (2) views of selected stakeholders and experts on the need for FCC regulation regarding set-top boxes and FCC's analysis of such need.

GAO analyzed data from a media research group regarding the video market and interviewed 35 industry stakeholders including 12 MVPDs, 5 video content producers, 3 device manufacturers, 12 industry associations, and others; GAO selected stakeholders based on comments filed with FCC on its 2016 proposed rule. GAO also interviewed 11 industry analysts and experts selected based on industry coverage and publications.

GAO recommends that FCC conduct a comprehensive analysis of how recent industry changes related to video services affect consumer choice for devices to access video services. The FCC agreed with GAO's recommendation and provided technical comments that GAO incorporated as appropriate.

Mentioning the public interest just once, the Federal Communications Commission adopted its 20th wireless competition report this week. As mandated by law, each year the FCC is tasked with reviewing the competitive market conditions with respect to commercial mobile services (voice, messaging and wireless broadband) including the number of competitors, an analysis of whether any competitors have a dominant share of the market, and a statement of whether additional providers or classes of providers would be likely to enhance competition. Each year, the headline-grabbing decision before the FCC is whether or not there is “effective competition.” This week, for the first time in eight years, the FCC concluded that there is “effective competition.”

While broadband internet access has increased over time, there remains a digital divide in access to and adoption of high-speed internet. Closing this gap must be a priority, and will take a substantial federal investment to do. There are still 34 million residents that do not have at least one broadband provider in their community. While nearly all of Connecticut has access to high-speed internet, more than one third of Mississippi’s residents lack access. At local levels, the disparities get larger. In more than 200 counties, no one has access to broadband internet. Congress must prioritize rural broadband expansion in any national comprehensive infrastructure plan debated in the 115th Congress.

Further, Congress needs to work on closing the gap in at-home internet usage. All Americans can benefit from having the internet in their homes, giving them better access to educational, health, and career-related resources. Bridging this gap will require improving competition to bring consumer costs down and expanding efforts to subsidize home broadband subscriptions.

Propaganda and other forms of “junk news” on Twitter flowed more heavily in a dozen battleground states than in the nation overall in the days immediately before and after the 2016 presidential election, suggesting that a coordinated effort targeted the most pivotal voters, researchers from Oxford University reported. The volumes of low-quality information on Twitter — much of it delivered by online “bots” and “trolls” working at the behest of unseen political actors — were strikingly heavy everywhere in the United States, said the researchers at Oxford’s Project on Computational Propaganda. They found that false, misleading and highly partisan reports were shared on Twitter at least as often as those from professional news organizations.

But in 12 battleground states, including New Hampshire, Virginia and Florida, the amount of what they called “junk news” exceeded that from professional news organizations, prompting researchers to conclude that those pushing disinformation approached the job with a geographic focus in hopes of having maximum impact on the outcome of the vote. The researchers defined junk news as “propaganda and ideologically extreme, hyperpartisan, or conspiratorial political news and information.” The researchers also categorized reports from Russia and ones from WikiLeaks — which published embarrassing posts about Democrat Hillary Clinton based on a hack of her campaign chairman’s email — as “polarizing political content” for the purposes of the analysis.

President Donald Trump is not "fit to serve as president," American voters say 56 - 42 percent, and voters disapprove 57 - 36 percent of the job he is doing as president, according to a Quinnipiac University national poll released Sept 27. The anti-Twitter sentiment remains high as voters say 69 - 26 percent that Trump should stop tweeting. No party, gender, education, age or racial group wants to follow the Tweeter-in- Chief. Voters say 51 - 27 percent they are embarrassed to have Trump as president.

"There is no upside. With an approval rating rating frozen in the mid-thirties, his character and judgement questioned, President Donald Trump must confront the harsh fact that the majority of American voters feel he is simply unfit to serve in the highest office in the land," said Tim Malloy, assistant director of the Quinnipiac University Poll.