March 2014

BENTON'S COMMUNICATIONS-RELATED HEADLINES for THURSDAY, MARCH 27, 2014

MediaCon and the FCC’s budget (yes, again) on today’s agenda http://benton.org/calendar/2014-03-27/

GOVERNMENT & COMMUNICATIONS
   Why President Obama and His NSA Defenders Changed Their Minds - analysis
   Don’t Listen to Google and Facebook: The Public-Private Surveillance Partnership Is Still Going Strong - Bruce Schneier op-ed
   Senate Secretly Considered Alternate Ways For NSA To Collect Phone Data, Officials Say
   How alleged social media leaks are shaping politics in Ukraine and Turkey [links to web]
   US-EU Cyber Cooperation - press release

PRIVACY/SECURITY
   Target Had Chance to Stop Breach, Senators Say [links to web]
   Experts urge US caution on additional cyber threat disclosures [links to web]
   Yes, debit cards make our streets safer. But they make the Internet more dangerous. [links to web]

TELEVISION
   FCC Proposal Would Curtail Local TV Stations From Teaming Up
   Majority Of Americans Not Happy About Possible Comcast-Time Warner Merger
   Comcast-TWC Deal Draws More Fire From Sen Franken
   Dish’s Ergen Said to Approach DirecTV CEO White About Merger
   The Indirect Approach for a Dish Deal - WSJ analysis
   Senate Judiciary Wades Into STELA
   Broadcasters: End the March Toward Retransmission Reform Madness [links to web]
   Univision Asks FCC for Retransmission Exemption [links to web]

WIRELESS/SPECTRUM
   Don’t overlook potential of unlicensed spectrum - Rep Eshoo op-ed
   Members of Congress Ask FCC to Maximize Revenue in AWS-3 Auction [links to web]
   NAB’s Kaplan: Incentive Auction Could Be Late 2015, Early 2016 [links to web]

INTERNET/TELECOMMUNICATIONS
   Sen Graham, Rep Chaffetz push online gambling ban [links to web]
   Democratic governors oppose online gambling ban [links to web]
   Oversight key for phone technology; it's up to Kentucky House to protect reliable service - editorial

ELECTIONS AND MEDIA
   Candidates, Outside Groups Getting 'Increasingly Bold' With Campaign Videos

EDUCATION
   New software lets teachers control student devices [links to web]

FCC REFORM
   Senators Seek FCC Online Complaint Database

POLICYMAKERS
   David Gossett Named Acting Deputy General Counsel For Litigation, Office of General Counsel - press release [links to web]

STORIES FROM ABROAD
   Turkish Court Overturns the Government’s Ban on Twitter
   Brazilian lawmakers approve bill of online rights, minus local storage requirements
   Government-subsidized fiber: Careful what you wish for - AEI op-ed

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GOVERNMENT & COMMUNICATIONS

WHY OBAMA AND HIS NSA DEFENDERS CHANGED THEIR MINDS
[SOURCE: National Journal, AUTHOR: Brendan Sasso]
It was only months ago that President Barack Obama, with bipartisan backing from the heads of Congress's Intelligence committees, was insisting that the National Security Agency's mass surveillance program was key to keeping Americans safe from the next major terrorist attack. But now, the President and the NSA's top supporters in Congress are all pushing proposals to end the NSA's bulk collection of phone records. So what changed? With a critical section of the Patriot Act set to expire next year, they realized they had no choice but to negotiate. If Congress fails to reauthorize that provision -- Section 215 -- by June 1, 2015, then the NSA's collection of US records would have to end entirely. And the growing outrage prompted by the Snowden leaks means that the NSA's supporters would almost certainly lose an up-or-down vote on the program. President Obama and the House Intelligence Committee leaders believe their proposals are now the NSA's best bet to retain some power to mine U.S. phone records for possible terror plots.
benton.org/node/179160 | National Journal
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STRONG PUBLIC-PRIVATE SURVEILLANCE PARTNERSHIP
[SOURCE: The Atlantic, AUTHOR: Bruce Schneier]
[Commentary] It may seem like the public/private surveillance partnership has frayed -- but, unfortunately, it is alive and well. The main focus of massive Internet companies and government agencies both still largely align: to keep us all under constant surveillance. When they bicker, it’s mostly role-playing designed to keep us blasé about what's really going on. These companies are certainly pissed that the publicity surrounding the NSA's actions is undermining their users' trust in their services, and they're losing money because of it. These companies are doing their best to convince users that their data is secure. But they're relying on their users not understanding what real security looks like.
benton.org/node/179171 | Atlantic, The
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SENATE CONSIDERED NSA OVERHAUL
[SOURCE: Associated Press, AUTHOR: Eileen Sullivan]
Apparently, the Senate Intelligence Committee three years ago secretly considered -- but ultimately rejected -- alternate ways for the National Security Agency to collect and store massive amounts of Americans' phone records. One of those options, outlined in a classified 2011 NSA analysis and reviewed in detail during closed committee meetings, was similar to what President Barack Obama is now advocating: that the government stop the bulk collection of Americans' phone records and instead ask phone companies to search their own business records for terrorism connections. After reviewing the 2011 NSA analysis, the Senate overseers decided not move forward with any alternate arrangement, according to two government officials familiar with the review. The officials spoke on condition of anonymity because they were not authorized to discuss the classified report.
benton.org/node/179170 | Associated Press
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US-EU CYBER COOPERATION
[SOURCE: The White House, AUTHOR: Press release]
The United States and the European Union work in close coordination on cyber-related issues both bilaterally and in multilateral fora. This cooperation is founded on our shared values, our interest in an open and interoperable Internet, and our commitment to multistakeholder Internet governance, Internet freedom, and protecting human rights in cyberspace. International cyberspace developments are central to our broader foreign and security policy, and are key elements of our strategic partnership. The new high-level US-EU Cyber Dialogue announced at the 2014 U.S.-EU Summit will formalize and broaden our cooperation on cyber issues, building on shared commitments and achievements in key areas. This strategic dialogue will be the platform for close US-EU coordination on:
International cyberspace developments;
Promotion and protection of human rights online;
International security issues, such as norms of behavior in cyberspace, cyber security confidence building measures, and application of existing international law; and
Cybersecurity capacity building in third countries.
benton.org/node/179256 | White House, The
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TELEVISION

FCC PROPOSAL WOULD CURTAIL LOCAL TV STATIONS FROM TEAMING UP
[SOURCE: Wall Street Journal, AUTHOR: Sarah Needleman, Rhonda Colvin]
Small-business owners often form joint ventures to broaden their reach and lower costs. But such teamwork may soon be off limits for small TV-station owners in the US under a regulatory proposal to curtail broadcasters in the same market from teaming up to sell advertising and strike deals to be included in cable-TV packages. The Federal Communications Commission proposal is aimed at stopping big broadcasters from circumventing TV-ownership limits. But some small TV-station owners say they could suffer -- and even be forced out of the marketplace. There are about 128 "joint sales agreements" around the US, according to Patrick Communications, a broker and adviser to broadcast companies. The arrangements make it possible for small stations in the same market to save money by sharing sales staff. But joint sales agreements can be abused, regulators say, with the bigger partner wielding power over the smaller licensee.
benton.org/node/179261 | Wall Street Journal
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OPPOSITION TO COMCAST-TIME WARNER CABLE
[SOURCE: Reuters, AUTHOR: David Ingram]
A majority of Americans are skeptical about the proposed merger of Comcast Corp and Time Warner Cable Inc, and they are not convinced the US government is doing enough to prevent monopolies generally, according to a Reuters/Ipsos online poll. The poll found that 52 percent of those surveyed believed that mergers such as the Comcast-Time Warner Cable deal result in less competition and are bad for consumers, while 22 percent believe they allow cable and internet providers to be more efficient and provide better service to consumers. Skepticism of the mergers varied significantly based on education level, according to the poll. For Comcast-Time Warner Cable, 62 percent of people with a college degree or more took a negative view of the deal, but that number fell to 57 percent among people with some college experience and 42 percent among those with none.
benton.org/node/179159 | Reuters
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COMCAST-TWC DEAL DRAWS MORE FIRE FROM FRANKEN
[SOURCE: The Wrap, AUTHOR: Ira Teinowitz]
At a Senate Judiciary Committee hearing which was supposed to examine whether to extend a law that allows the direct satellite services to operate, Sen Al Franken (D-MN) stepped up his denunciation of Comcast's deal for Time Warner. “I believe that the cable industry could become even more powerful if Comcast is allowed to acquire Time Warner. I strongly oppose this acquisition,” said Sen Franken. “One thing is clear. I believe it is a terrible deal for consumers.” He also pressed representatives from consumer group Public Knowledge about the Comcast deal, along with Ellen Stutzman, Director of Research and Public Policy for Writers Guild of America-West. “We think the FCC should reject the deal,” Stutzman said. “It is not in the public interest. It is anticompetitive. It is a bad deal for content creators as well as consumers. She went onto say that “Comcast is already the largest cable and internet service provider. Allowing them to get bigger will make them too powerful of a content gatekeeper.” Stutzman suggested that the deal would give Comcast the clout to reduce affiliate fees that cable and TV networks use to invest in content, while giving the company control of a third of the broadband Internet market. “[The internet] is where all the new competition is coming from,” she said. “We fear they will use their power to steer away from new providers like amazon and Netflix to favor their own content.”
benton.org/node/179258 | Wrap, The
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DISH-DIRECTV
[SOURCE: Bloomberg, AUTHOR: Alex Sherman]
Dish Network Chairman Charlie Ergen recently contacted DirecTV Chief Executive Officer Mike White to discuss a merger of the two satellite television companies, according to several people with knowledge of the matter. Shares of both companies rose. Ergen made the approach in response to Comcast’s $45 billion acquisition of Time Warner Cable announced in mid-February, one of the people said, asking not to be identified discussing confidential information. White is reluctant to push forward with formal talks out of concern regulators may block the deal because the two companies directly compete with each other, another person said. Even if regulators allow Comcast’s acquisition of Time Warner Cable, DirecTV management doesn’t see the cable deal as a proxy for an approval of deal with Dish, said another person familiar with the matter. DirecTV and Dish’s 2002 attempt to merge was blocked by regulators.
benton.org/node/179162 | Bloomberg
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DISH-DIRECTV
[SOURCE: Wall Street Journal, AUTHOR: Miriam Gottfried]
[Commentary] DirecTV's interest in a deal with its satellite rival, Dish Network, has been an open secret for some time. MoffettNathanson estimates synergies would be worth $30 billion -- bigger than Dish's current market capitalization. Indeed, a previous merger attempt was blocked by regulators in 2002. Regulatory concerns and a shift in Dish's focus toward buying up airwaves have since kept a potential deal on the back burner. Its revival now looks tactical. Dish may think it will be easier to get a deal past regulators while they are also weighing the merger of Comcast and Time Warner Cable. The satellite companies could argue that getting together would help them better compete against such a cable behemoth. Even if that doesn't fly, a Dish-DirecTV bid could inspire regulators to reject both deals, stymieing the competitive threat from the cable merger. And if regulators approve the latter while rejecting a satellite deal, Dish and DirecTV would end up roughly back where they started. Regulators, though, are unlikely to see a Dish-DirecTV tie-up in the same light as the Comcast-Time Warner Cable deal. The cable operators don't compete against each other in any markets. Dish and DirecTV, meanwhile, compete in every market, most significantly in some rural areas where satellite is the only pay-TV service available -- something regulators focused on the last time around.
benton.org/node/179260 | Wall Street Journal
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SENATE JUDICIARY WADES INTO STELA
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
The Senate Judiciary Committee began its consideration of satellite legislation with a short and to the point hearing that teed up the key questions about what should and should not be in the bill. Committee Chairman Patrick Leahy (D-VT) said that the competitive marketplace had changed since the bill was adopted over 25 years ago, and even just since the switch to digital TV five years ago. Committee Leahy said he recognized that a compulsory license inherently restricts the ability to negotiate a marketplace deal and looked forward to the time when the distant signal license in that bill could sunset, but with 1.56 million people still relying on that license for some or all of their network affiliated TV stations, this was not yet the time. Chairman Leahy himself is a satellite customer, given there is no cable service where he lives and limited broadcast service because it is on the side of a mountain. Chairman Leahy said he would "move forward" on bipartisan legislation reauthorizing the Satellite Television Extension and Localism Act (STELA), but it was not clear from the hearing what would pass muster with both sides.
benton.org/node/179259 | Broadcasting&Cable
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WIRELESS/SPECTRUM

THE POTENTIAL OF UNLICENSED SPECTRUM
[SOURCE: The Hill, AUTHOR: Rep Anna Eshoo (D-CA)]
[Commentary] As the Federal Communications Commission (FCC) prepares for the world’s first incentive auction to provide more spectrum for mobile broadband services, we have a unique opportunity to fuel a new generation of unlicensed innovation, supporting rural broadband, connected hospitals, and smart grid networking. The FCC should ensure that when it issues the rules for the upcoming incentive auction, it balances the needs for unlicensed and licensed spectrum by structuring it to include nationwide bands of spectrum dedicated for unlicensed use and innovation. This will produce enormous economic benefits and could yield untold technological discovery.
benton.org/node/179167 | Hill, The
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INTERNET/TELECOMMUNICATIONS

KENTUCKY BILL
[SOURCE: Lexington Herald-Leader, AUTHOR: Editorial staff]
[Commentary] How will Kentucky decide whether cell or Internet telephone service is sufficiently reliable and affordable to relieve major carriers of the obligation to provide basic land-line service? If the Kentucky House follows the Senate and passes Senate Bill 99 virtually as AT&T wrote it, then policymakers will have outsourced that decision to AT&T and its competitors. If the House takes a more public-spirited approach and passes the bill with the amendments attached by Rep. Larry Clark (D-Louisville), it will maintain some protections for consumers. Those protections would include limited oversight by the Public Service Commission, a requirement to tell consumers any limitations of the new service being offered, and an extended period for consumers to switch back to a basic service if they are not happy with their new service. A third choice -- one we endorse -- is for the House to again reject this bill, choosing to wait until trials by the Federal Communications Commission and other regulatory groups determine how best to provide carriers more flexibility while protecting those who rely on basic phone service as a literal lifeline.
benton.org/node/179161 | Lexington Herald-Leader
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ELECTIONS AND MEDIA

CAMPAIGN VIDEOS
[SOURCE: Associated Press, AUTHOR: Philip Elliott]
Sen Mitch McConnell (R-KY) grins ear-to-ear while shaking hands with a Vietnam veteran. In casual T-shirt and sweater, Sen Mark Begich (D-AK) chats up Alaska fishermen as they fix netting. Rep Bruce Braley (D-IA) walks past bales of hay in a field. The high-quality footage is just sitting on their campaign websites, available to anybody -- say, friends who run super PACs and outside groups -- who might want to make it part of a campaign commercial in this year's high-stakes Senate elections. The law prohibits any candidate from coordinating with these groups, which may share the goal of winning an election to Congress this year. But nothing says a group like the Kentucky Opportunity Coalition can't use the public footage of Sen McConnell in a campaign commercial that could help the Senate's minority leader win a sixth term. So the Kentucky Opportunity Coalition has done just that. Such non-coordination reflects the fierce competition of this year's elections, in which Republicans need to gain only six seats to win control of the Senate and have a profound influence over the last two years of President Barack Obama's presidency.
benton.org/node/179165 | Associated Press
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FCC REFORM

ONLINE COMPLAINT DATABASE FOR FCC?
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
Senators Bill Nelson (D-FL) and Tom Udall (D-NM) asked Federal Communications Commission Chairman Tom Wheeler to create a publicly searchable online consumer complaint database. They have even done some vote counting for him that suggests he already has three votes for the move. They also pointed out that the FCC's own Consumer Advisory Committee recommended an online complaint database. "Although the Commission annually receives about 400,0000 consumer complaints and other public inquiries through its website and other means, complaint data are only made public on a very limited basis," they said. They pointed to a 2009 Government Accountability Office report that concluded that FCC complaint number might be low because consumers are unaware of the process, and that the FCC "lacks measure to effectively resolve problems through its consumer complaint process." They said a searchable, user-friendly complaint database would "enhance transparency, help the FCC empower consumers," and even "spur greater innovation in the telecommunications marketplace."
benton.org/node/179183 | Broadcasting&Cable
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STORIES FROM ABROAD

TURKISH COURT OVERTURNS TWITTER BAN
[SOURCE: New York Times, AUTHOR: Sebnem Arsu]
A court in Turkey ruled that the government could not ban Twitter, as it sought to do five days ago, and ordered the country’s telecommunications authority to restore access to the service. The action by the government had been met inside and outside the country with an uproar about respect for freedom of expression. It was not immediately clear whether the ruling would be appealed or overtaken by a new court order. The court in Ankara, the capital, ruled in response to complaints by Turkey’s bar association and its journalists’ union, arguing that the attempt to block Twitter contravened the freedom of information and communication. The prohibition has been widely bypassed by Twitter users, who have reached the service through alternative channels. Twitter welcomed the ruling, saying that the government ban had been disproportionate and illegal and that the complaints the government had about content had already been addressed. A statement from the Justice Ministry hinted at a delay, saying that the authority had 30 days to comply and that a regional administrative court would have the final say in the case. Yet another court, the Constitutional Court, was expected to rule on a separate complaint about the Twitter ban, filed by two academic experts on cyberlaw who asserted that the blocking of Twitter infringed on a constitutional right to information.
benton.org/node/179184 | New York Times
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BRAZILIAN INTERNET LAW
[SOURCE: GigaOm, AUTHOR: David Meyer]
The lower house of Brazil’s Congress has approved the country’s first bill of online rights, the Marco Civil da Internet. If passed by the Senate and signed off by the president, the bill would entrench network neutrality in Brazilian law and limit the liability of web platforms if users upload certain types of unlawful content. However, while the bill would force international web firms to adhere to Brazilian privacy law in legal disputes regarding local citizens, it would not require companies such as Google and Facebook to store data on Brazilians within Brazil’s borders.
benton.org/node/179155 | GigaOm
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GOVERNMENT-SUBSIDIZED FIBER
[SOURCE: American Enterprise Institute, AUTHOR: Bronwyn Howell]
[Commentary] The bold policies of the Australian and New Zealand governments to fund nationwide national fiber-to-the-home (FTTH) broadband networks have drawn attention of late for all the wrong reasons. So far, Australia has spent around $28,000 for each of its 260,000 residential connections, whilst New Zealand’s uptake rate after two years stands at just a little over 5% of premises passed. The inability of such ‘grand policies’ to deliver upon the aspirations held for them is in large part due to some of the well-established reasons why politics and the telecommunications industry have historically made such uneasy bedfellows.
[Howell is general manager for the New Zealand Institute for the Study of Competition and Regulation]
benton.org/node/179154 | American Enterprise Institute
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