April 1, 2014 (Happ April Fools' Day)
BENTON'S COMMUNICATIONS-RELATED HEADLINES for TUESDAY, APRIL 1, 2014 (No Fooling)
Senate Commerce Committee Hearing: Reauthorization of the Satellite Television Extension and Localism Act http://benton.org/calendar/2014-04-01/
NEWS FROM THE FCC
FCC Adopts TV JSA Attribution Rules, Begins 2014 Media Ownership Quadrennial Review - press release
NAB on FCC JSA Vote: Arbitrary and Capricious [links to web]
FCC Increases Availability of Spectrum for High-Speed, High-Capacity Wi-Fi And Other Unlicensed Uses In The 5 GHz Band - press release
FCC Takes Action to Improve Retransmission Consent Process - press release
MVPDs of All Stripes Praise FCC Retransmission Negotiation Limit [links to web]
FCC Sets Stage for Auction Of 65 Mhz Of Spectrum For Mobile Broadband - press release
Hill Dems back FCC moves [links to web]
FCC Chairman Wheeler: We'll Look Inside For Comcast/TWC Review Leader
GOVERNMENT & COMMUNICATIONS
NSA infiltrated RSA security more deeply than thought -- study
How Huawei Became the NSA’s Surveillance Nightmare [links to web]
OWNERSHIP
Comcast-Time Warner Cable merger is a bad deal - op-ed
INTERNET/TELECOMMUNICATIONS
Alarm Company Opposes Legislation Targeting TDM-to-IP Transition
WIRELESS/SPECTRUM
Cisco Predicts the US Maintains Lead in Mobile Broadband Usage [links to web]
Google Is Central to Latest Apple-Samsung Case [links to web]
CONTENT
As advertisers phase out cookies, what’s the alternative? - op-ed [links to web]
March Madness: A Record 61 Million Streams and Counting [links to web]
POLICYMAKERS
Mr. Smith Goes Off On Washington [links to web]
COMPANY NEWS
Skype's Message to Facebook and WhatsApp: Millennial Use Growing [links to web]
STORIES FROM ABROAD
Global thrust to achieve universal broadband connectivity - press release
Google, Others Blast Turkey Over Internet Clampdown
Watchdog attacks BT ‘monopoly’ in rural broadband rollout
In Bjørndalen, Norway, a Small Cabin Enjoys Some of the World's Fastest Internet [links to web]
The gig economy is here, and it’s not a pretty picture [links to web]
NEWS FROM THE FCC
FCC ADOPTS TV JSA ATTRIBUTION RULES, BEGINS 2014 MEDIA OWNERSHIP QUADRENNIAL REVIEW, AND PROPOSES BENEFITS FOR SMALL BUSINESS OWNERS
[SOURCE: Federal Communications Commission, AUTHOR: Press release]
The Federal Communications Commission took steps to close a loophole in its TV ownership rules, making sure that a party’s interests in a market are properly counted. Removal of the loophole helps ensure competition, localism, and diversity in local broadcast markets by preventing a practice that previously resulted in consolidation in excess of what is permitted under the Commission’s rules. A JSA, or joint sales agreement, is between two stations in the same market in which one station is authorized to sell advertising time on the other station. The Commission’s radio rules have long recognized that these agreements create an ownership interest when the JSA allows for the sale of 15% or more of the advertising time on a competing local station. The Report and Order applies this same standard to broadcast television. Parties to existing TV JSAs will have two years to come into compliance with the applicable local ownership limits. Waiver requests, considered on a case-by-case basis, must show that strict compliance with the rule is inconsistent with the public interest. Also adopted was a Further Notice of Proposed Rulemaking that initiates the Commission’s 2014 Media Ownership Quadrennial Review and incorporates the ongoing 2010 Quadrennial Review record. The FNPRM asks for new and additional information on current market conditions to ensure a comprehensive and refreshed record. The current ownership rules remain in place while the review is pending. The FNPRM additionally asks for comment on whether commercial television stations should be required to disclose shared service agreements and how best to achieve disclosure. An SSA allows same market stations to share resources, such as employees, administrative services, or hard assets, such as a news helicopter. The Further Notice of Proposed Rulemaking also recommends reinstatement of the Commission’s revenue-based “eligible entity” standard, finding that the program would support new entry into the broadcast industry by small businesses.
benton.org/node/179474 | Federal Communications Commission | The Wrap | Multichannel News | TVNewsCheck | AdWeek
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FCC INCREASES AVAILABILITY OF SPECTRUM FOR HIGH-SPEED, HIGH-CAPACITY WI-FI AND OTHER UNLICENSED USES IN THE 5 GHz BAND
[SOURCE: Federal Communications Commission, AUTHOR: Press release]
The Federal Communications Commission provided for accelerated growth and expansion of new Wi-Fi technology that can offer faster speeds of one gigabit per second or more, increase overall capacity, and reduce congestion at Wi-Fi hot spots. The new rules will make 100 MHz of spectrum more accessible for use in homes and congested spaces like convention centers, parks, and airports and increase the potential for more unlicensed spectrum innovation. The Commission adopted a Report and Order modifying the rules governing the operation of Unlicensed National Information Infrastructure (U-NII) devices operating in the 5 GHz band. By its action the Commission significantly increased the utility of the 100 megahertz of spectrum, and streamlined existing rules and equipment authorization procedures for devices throughout the 5 GHz band. U-NII devices play an important role in meeting public demand for wireless broadband service. Currently U-NII devices operate in 555 megahertz of spectrum in the 5 GHz band, and are used for Wi-Fi and other high-speed wireless connections. These devices support a variety of applications including Wi-Fi hot spots and wireless home local area networks to connect smart phones, tablets and laptops to the Internet, broadband service to rural areas offered by Wireless Internet Service Providers and off-loading of traffic from commercial cellular wireless networks. The rules adopted remove the current restriction on indoor-only use and increase the permissible power which will provide more robust access in the 5.150-5.250 GHz band. In turn, this will allow U-NII devices to better integrate with other unlicensed portions of the 5 GHz band to offer faster speeds and reduce congestion at crowded Wi-Fi hot spots such as airports and convention centers. The Commission also modified certain technical rules to improve protection for incumbent systems by requiring manufacturers to secure their devices against illegal modification which could cause interference to incumbent users in the band.
benton.org/node/179475 | Federal Communications Commission | Revere Digital | The Hill | Multichannel News | GigaOm | National Journal | The Hill | TVNewsCheck | FCC Chairman Wheeler | Commissioner Rosenworcel | Commissioner Clyburn | Commissioner Pai | Commissioner O’Rielly
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FCC TAKES ACTION TO IMPROVE RETRANSMISSION CONSENT PROCESS
[SOURCE: Federal Communications Commission, AUTHOR: Press release]
The Federal Communications Commission adopted a Report and Order that strengthens its rules governing retransmission consent negotiations. This Order will help curtail a practice that has put upward pressure on cable and Direct Broadcast Satellite programming costs as well as prices to consumers. The Communications Act requires cable systems and other pay television services to obtain a broadcast television station’s retransmission consent before carrying the station’s signal. The Act also requires broadcasters and pay television service providers to negotiate retransmission consent agreements in good faith. The Order prohibits a television broadcast station ranked among the top four stations (as measured by audience share) from negotiating retransmission consent jointly with another top four station if the stations are not commonly owned and serve the same geographic market. Joint negotiation by these stations leads to higher retransmission consent fees because the practice reduces competition between the stations. Additionally, the threat of losing the programming of two or more top four stations at the same time gives the stations undue bargaining leverage in negotiations with Multichannel Video Program Distributors. To target collusive behavior effectively, the Order also defines joint negotiations. Congress passed retransmission consent legislation over 20 years ago. benton.org/node/179472 | Federal Communications Commission | FCC Chairman Wheeler | Commissioner Rosenworcel | Commissioner Clyburn | Commissioner Pai | Commissioner O’Rielly | B&C | The Hill
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FCC SETS STAGE FOR AUCTION OF 65 MHZ OF SPECTRUM FOR MOBILE BROADBAND
[SOURCE: Federal Communications Commission, AUTHOR: Press release]
The Commission adopted a Report and Order that advances ongoing efforts to make more spectrum available for flexible use wireless services, including mobile broadband. The Report and Order represents significant progress in the Commission’s ongoing effort to make available and promote efficient use of spectrum, including through sharing. The action represents the largest amount of spectrum suitable for mobile broadband that the Commission has made available for auction since the 700 MHz band was auctioned in 2008. The action also builds upon the success of the recent H Block auction. Access to these bands will help wireless companies meet growing consumer demand for mobile data by enabling faster wireless speeds and more capacity. Specifically, the Report and Order sets flexible-use regulatory, licensing, and technical rules for 65 megahertz of spectrum in the AWS-3 band, which includes the 1695-1710 MHz, 1755-1780 MHz, and 2155-2180 MHz bands. The Report and Order establishes a band plan that makes spectrum available in a mix of spectrum block and geographic license area sizes to meet the needs of large and small wireless providers. The Report and Order also establishes construction deadlines and other service rules, including a requirement that AWS-3 devices be interoperable within AWS-3 and AWS-1 frequencies. The Report and Order is the result of years of work across multiple federal agencies and in coordination with industry stakeholders to make 40 megahertz (of the total 65 megahertz) of the AWS-3 spectrum available for commercial use. This spectrum will be available on a shared basis with federal incumbents in accordance with detailed plans for these agencies to relocate out of the frequencies or share within the frequencies.
benton.org/node/179470 | Federal Communications Commission | FCC Chairman Wheeler | Commissioner Rosenworcel | Commissioner Clyburn | Commissioner Pai | Commissioner O’Rielly | New York Times | B&C | The Verge | GigaOm
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FCC CHAIRMAN WHEELER: WE'LL LOOK INSIDE FOR COMCAST/TWC REVIEW LEADER
[SOURCE: Multichannel News, AUTHOR: John Eggerton]
Federal Communications Commission Chairman Tom Wheeler indicated on March 31 that the FCC has assembled its team to review the proposed Comcast/NBCU transaction, that it will be headed by someone internally, and that it has been and will be coordinating closely with the Department of Justice. At a press conference following the FCC's March public meeting, Chairman Wheeler said that while the FCC had gone outside the agency for someone to review the Comcast/NBCU merger, he had the in-house talent to handle the job. "We are frequently in touch with the Justice Department and we have put together a task force on Comcast/Time Warner. We will bring in the necessary external help," he said, but added that "We have not gone outside to hire someone to run that task force. We'd rather have someone who is well experienced in the...issues."
benton.org/node/179471 | Multichannel News
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GOVERNMENT & COMMUNICATIONS
NSA INFILTRATED RSA SECURITY MORE DEEPLY THAN THOUGHT – STUDY
[SOURCE: Reuters, AUTHOR: Joseph Menn]
Security industry pioneer RSA adopted not just one but two encryption tools developed by the US National Security Agency, greatly increasing the spy agency's ability to eavesdrop on some Internet communications, according to a team of academic researchers. Reuters reported in December that the NSA had paid RSA $10 million to make a now-discredited cryptography system the default in software used by a wide range of Internet and computer security programs. The system, called Dual Elliptic Curve, was a random number generator, but it had a deliberate flaw -- or "back door" -- that allowed the NSA to crack the encryption. A group of professors from Johns Hopkins, the University of Wisconsin, the University of Illinois and elsewhere now say they have discovered that a second NSA tool exacerbated the RSA software's vulnerability. The professors found that the tool, known as the "Extended Random" extension for secure websites, could help crack a version of RSA's Dual Elliptic Curve software tens of thousands of times faster, according to an advance copy of their research shared with Reuters. While Extended Random was not widely adopted, the new research sheds light on how the NSA extended the reach of its surveillance under cover of advising companies on protection.
benton.org/node/179464 | Reuters
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OWNERSHIP
COMCAST-TWC IS A BAD DEAL
[SOURCE: Washington Post, AUTHOR: Catherine Rampell]
[Commentary] Can we block a merger just because the two companies involved are jerks? I bet you know which merger I’m thinking of: the one where America’s most hated company wants to join forces with America’s second-most hated company (Time Warner Cable and Comcast, in no particular order). Don’t just take my word for it, though I did have to reset my Comcast modem three four times while writing this column. Consumers are more likely to swear while on the phone with their TV provider than with almost any other company they call, according to an analysis of 1.2 million customer call recordings conducted by Marchex. And in pretty much every ranking of customer service, satisfaction or reputation, Comcast and Time Warner Cable clock in at last place or very close to it. Time Warner and Comcast, of course, argue that their marriage would be unambiguously “pro-consumer” and would “generate significant cost savings and other efficiencies.” But they have also effectively acknowledged that those alleged efficiencies wouldn’t be passed on to consumers. During a conference call shortly after the merger announcement, a Comcast executive told reporters, “We’re certainly not promising that customer bills are going to go down or even increase less rapidly.” This should be enough to concern the antitrust regulators at the Justice Department. But remember that the Federal Communications Commission, which must also approve the merger, has a broader mission beyond just trust-busting: Regulators there are supposed to judge whether mergers are “in the public interest” before waving one through (or at least imposing conditions on it). Traditionally “public interest” has included factors including competition, localism and diversity. Perhaps a solid record of screwing over millions of customers should be a consideration, too.
benton.org/node/179486 | Washington Post
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INTERNET/TELECOMMUNICATIONS
ALARM COMPANY OPPOSES LEGISLATION TARGETING TDM-TO-IP TRANSITION
[SOURCE: telecompetitor, AUTHOR: Joan Engebretson]
AT&T’s plans for TDM-to-IP transition trials are clashing with efforts to de-regulate telecom -- an initiative the company also has been championing. Consumer advocates and ADT, one of the nation’s largest alarm companies, are asking Kentucky lawmakers to delay passing a telecom deregulation bill until the TDM-to-IP transition trials, to be overseen by the FCC, are completed, reports Public News Service. According to an AT&T proposal, TDM-to-IP transition trials would begin in late 2014 or early 2015 and run into 2017. The Kentucky bill would allow major phone companies to stop providing landline service in parts of the state, Public News Service reports. If the bill were to pass, consumers would have to rely on VoIP over a broadband connection or a cellular service. And if that were to occur, “there is some likelihood that alarm systems and/or medical alert systems may not be able to send signals to ADT’s monitoring centers,” ADT Vice President of Industry Relations Steve Shapiro told Public News Service.
benton.org/node/179460 | telecompetitor
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STORIES FROM ABROAD
GLOBAL THRUST TO ACHIEVE UNIVERSAL BROADBAND CONNECTIVITY
[SOURCE: International Telecommunication Union, AUTHOR: Press release]
The sixth ITU World Telecommunication Development Conference (WTDC-14) opened in Dubai, United Arab Emirates, with a call to achieve universal broadband connectivity. Under the theme ‘Broadband for Sustainable Development’, the conference will focus on development priorities in telecommunications and information and communication technologies (ICT) and agree on the programs, projects and initiatives to implement them. Mohamed Nasser Al Ghanim, Director General of the Telecommunication Regulatory Authority of the United Arab Emirates and Head of the UAE delegation was elected Chairman of the Conference. He noted that the focus on the theme ‘Broadband for Sustainable Development’ brings attention to the critical aspect of leading edge ICT in enhancing a nation’s development. One of the expected outcomes of WTDC-14 is the Dubai Action Plan -- which will set the agenda for telecommunication and information and communication technologies development over the next four years. The dialogue, which will shape the future of the telecommunication and ICT sector and its contribution to social and economic development, will focus on:
Sound policies and regulatory frameworks that will foster investment and further develop telecom/ICT networks
Improved access to ICT applications to provide people with services such as education, health, and empower them with the means to achieve sustainable development
Increased safety and security in the use of telecoms/ICTs
Capacity building in the area of ICTs
Emergency telecommunications
benton.org/node/179458 | International Telecommunication Union | Multichannel News
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GOOGLE BLASTS TURKEY
[SOURCE: Wall Street Journal, AUTHOR: Emre Peker, Joe Parkinson, Sam Schechner]
Google and other US companies alleged that Turkey's telecommunications firms impersonated their servers to block access to social-media sites, as the ruling party tried to squelch dissent around local elections. The telecom moves targeted sites like Twitter and YouTube, which Turkish Prime Minister Recep Tayyip Erdogan's detractors have used to organize and express dissent. Election results stunned his critics, as the opposition failed to check the premier's power amid the government's increasingly aggressive Internet blackout. Erdogan -- whose ruling Justice and Development Party, or AKP, took a greater-than-expected 46% of votes, trouncing his closest rival's 28% -- hailed the election as paving way for an era of what he called advanced democracy.
benton.org/node/179485 | Wall Street Journal
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BT MONOPOLY
[SOURCE: Financial Times, AUTHOR: Daniel Thomas]
The £1.2bn state project to provide fast broadband services to rural areas has been attacked for creating a “monopoly” for BT by the government’s spending watchdog. Members of Parliament found that the former national telecoms group had been in a position to win all of the £490m of state subsidies on offer to roll out broadband services to remote areas. Margaret Hodge, chair of the public accounts committee, said: “The government has failed to deliver meaningful competition in the procurement of its £1.2bn rural broadband program, leaving BT effectively in a monopoly position.” While the government’s Broadband UK (BDUK) program was attacked for creating the conditions, BT was itself criticized Ms Hodge for “exploiting its monopoly position to the detriment of the taxpayer, local authorities and those seeking to access high-speed broadband in rural areas”.
benton.org/node/179484 | Financial Times
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